Kraft Heinz said Wednesday it is halting its plans to split into two companies.
Steve Cahillanea former head of Kellogg Co. who became chief executive of Kraft Heinz on Jan. 1, said he wants to make sure all of the company’s resources are focused on profitable growth.
“I have seen that the opportunity is greater than expected and that many of our challenges are solvable and within our control,” Cahillane said in a statement.
The company’s shares fell 5.2% in early trading Wednesday as Kraft Heinz reported lower quarterly and annual results.
Kraft Heinz announced in September was split into two companies a decade after a merger of brands created one of the largest food manufacturers on the planet.
One of the companies would include top-selling brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other would include slower-selling brands such as Maxwell House, Oscar Mayer, Kraft Singles and Lunchables.
At the time, Kraft Heinz said it expected the split to be completed in the second half of this year.
On Wednesday, the company said it will spin off the division and invest $600 million in marketing, sales and product development.
In its fourth-quarter earnings release Wednesday, CEO Steve Cahillane said Kraft Heinz’s balance sheet and free cash flow potential were strong.
“We are confident in the opportunity before us and believe this investment will accelerate our return to profitable growth,” Callihane said.






