Food giant Kraft Heinz is to split in two in a bid to overcome struggles in recent years, a decade after it was formed in a mega-merger.
The ketchup and baked beans maker confirmed the break-up on Tuesday after reports last week that it was working on a potential demerger.
The company, which also makes Heinz soups and HP sauce in the UK, is to separate into two independent, publicly traded companies.
It said the overhaul is “designed to maximise Kraft Heinz’s capabilities and brands while reducing complexity”.
One part of the business will operate as Global Taste Elevation Co, which will include the group’s global brands and many of its sauces and tinned products.
This will include brands such as Heinz, Philadelphia and Kraft Mac & Cheese, the company said.
It will then also create the North American Grocery Co, focusing on staples in the US and other parts of the region, where it has brands including Oscar Mayer, Kraft Singles and Lunchables.
Carlos Abrams-Rivera, Kraft Heinz chief executive, said: “This move will unleash the power of our brands and unlock the potential of our business.
“This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day.
“We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
The deal is expected to complete in the second half of next year, dependent on regulatory approval.
