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Industry NewsKraft Heinz mulls sale of Oscar Mayer

Kraft Heinz mulls sale of Oscar Mayer

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Kraft Heinz is considering the sale of its iconic brand, Oscar Mayer, according to the Wall Street Journal.

The company has enlisted Bank of America and Centerview Partners to explore potential interest in the business, with estimated valuations ranging from $3 billion to $5 billion, according to sources familiar with the matter. 

Potential buyers for Oscar Mayer could include private equity firms and other players within the food industry, according to the Wall Street Journal.

Under the leadership of new chief executive Carlos Abrams-Rivera, Kraft Heinz is undergoing a restructuring of its portfolio to align with growing consumer preferences for health and nutrition. 

The move is aimed at restoring the company’s stock performance, which has remained stagnant over the past five years, with a current market capitalization of approximately $44 billion.

Kraft Heinz is focusing on improving the nutritional profile of its staple products, such as ketchup and juice drinks, in response to increasing concerns over the health impacts of ultra-processed foods, obesity and chronic diseases associated with diet.

Recent quarterly results from the company disappointed investors, reflecting cooling demand for some of its products and challenges associated with higher input prices, according to the Wall Street Journal. While specific performance details for Oscar Mayer were not provided, Kraft Heinz has been addressing market-share losses in its cold cuts segment attributed to supply chain issues.

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