Kraft Heinz appoints Steve Cahillan as CEO before spin-off

Kraft Heinz Former Kellanova CEO Steve Cahillane will lead the company ahead of a planned split next year, Kellanova announced Tuesday.

Cahillane will join company owner Oscar Mayer as CEO on January 1. After Kraft Heinz splits into two publicly traded companies, Cahillan will serve as CEO of the company called Global Taste Elevation, which will include high-growth brands such as Heinz, Philadelphia and Kraft Mac & Cheese.

Cahillan previously led Kellogg’s through its spin-off in 2023. The company spun off its North American slow-food cereal business from its high-growth snacks unit, which was then renamed Kellanova. Cahillan remained CEO of Kelanova until March acquired the company for $35.9 billion.

Carlos Abrams Rivera, the outgoing Kraft Heinz CEO, has been tapped to lead the other well-known North American grocer. However, he will now work as an advisor until March 6. Abrams Rivera has been CEO of the food giant since 2024.

Kraft Heinz’s board of directors will begin a search for a CEO to lead its core grocery group, which includes brands such as Oscar Mayer and Kraft Singles.

As part of the transition, John Cahill, who served as CEO of Kraft during its merger with Heinz a decade ago, will succeed Miguel Patricio as chairman of the board.

Kraft Heinz expects the spin-off to take place in the second half of 2026. The company announced the spin-off plans in September, after years of sluggish sales despite turnaround efforts. The split reflects much of the blockbuster $46 billion merger a decade ago that created one of the world’s largest food companies.

Shares of Kraft Heinz rose slightly in premarket trading. The stock is down about 20% this year.

Programming Note: Steve Cahillan will speak to CNBC’s “Squawk on the Street” at 10:10 a.m. Tuesday.