Kraft Heinz Sells North American Coffee Business for $650 Million

Kraft Heinz announced the sale of its North American coffee business, including the Maxwell House and Gevalia brands, to private equity firm One Rock Capital Partners. The transaction values the unit at $650 million and is expected to close in mid-2027, though Kraft Heinz will retain a 30% equity stake in the business.

CEO Steve Cahillane is redirecting the company's strategy toward core packaged foods and condiments. As part of this shift, the company is investing $700 million into marketing and innovation for electrolyte-infused and protein-heavy products. This pivot follows a 15.2% decline in adjusted operating income for the quarter ending September 26 and a 2.4 percentage point volume drop in North America.

Despite these losses, the company raised the low end of its fiscal 2026 organic net sales target. The financial pressure stems from broader industry headwinds, including consumers switching to cheaper brands and rising costs linked to tariffs and the United States' war with Iran.