Kraft Heinz announced the divestiture of its North American coffee unit, which includes well-known brands like Maxwell House and Gevalia, in a deal valued at $650 million. The transaction, expected to close by mid-2027, will provide Kraft Heinz with $500 million in post-tax cash proceeds, which the company plans to use to pay down debt.
CEO Steve Cahillane emphasized that this move is part of a broader strategy to unlock value and accelerate the company's transformation, which includes a significant $700 million reinvestment into its core brands.
Following the announcement, Kraft Heinz reported third-quarter earnings that exceeded expectations and improved its 2026 sales outlook, now projecting a decline in organic net sales of only 0.5% to 1.25%, a positive shift from earlier estimates. Cahillane noted that the company's turnaround efforts are on track, with improving market share and sales trends across all regions.
The news positively impacted Kraft Heinz's stock, which rose approximately 5% in early trading