Monday 29 May 2023

Kraft Heinz reviews options to sell Maxwell House coffee business, says Cnbc

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MILAN — Kraft Heinz Co has appointed investment bank Crédit Suisse to review options for its Maxwell House coffee business, including a potential sale, CNBC reported on Sunday, citing people familiar with the matter.

Kraft Heinz, which is a result of mega-merger between H.J. Heinz and Kraft in 2015, is looking to divest other brands as health-conscious consumers shy away from packaged foods brands such as Oscar Mayer and Velveeta.

Its coffee business has roughly $400 million in earnings before interest, taxes, depreciation and amortization and could attract a price of at least $3 billion in a sale, the sources, who were not identified, told Cnbc.

Kraft Heinz last week delivered fourth-quarter earnings and revenue that were sharply lower than estimates.

It also slashed its dividend by 36 percent and took a $15 billion write-down on two of its biggest brands, Kraft and Oscar Mayer. The move resulted in Kraft ceding nearly 25% in Friday trading.

Both Kraft Heinz and Crédit Suisse spokespersons declined to comment on the report.

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