Kraft Heinz to offload North American coffee arm in $650 million deal

Kraft Heinz to divest its North American coffee business

Kraft Heinz announced Wednesday that it will sell its North American coffee unit to private‑equity firm One Rock Capital Partners in a deal that values the business at $650 million on an enterprise basis.

The portfolio being transferred includes the Maxwell House and Gevalia brands, and the transaction is slated to close in mid‑2027. Kraft Heinz will retain a 30% noncontrolling equity stake in the coffee operation.

According to the company’s news release, $500 million of post‑tax cash proceeds will be directed toward debt repayment as the firm seeks to concentrate resources on accelerating growth.

"This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation," said Steve Cahillane, CEO of Kraft Heinz.

Cahillane, who joined the company in January, recently paused a plan to split the firm—a move that would have undone the $46 billion merger from a decade ago. He described the challenges facing Kraft Heinz as “fixable and within our control.”

The turnaround strategy has already seen a $700 million investment back into the business and a sharpened focus on core brands.

On the same day, Kraft Heinz reported third‑quarter earnings that beat expectations and raised its 2026 outlook, now forecasting organic net sales to decline between 0.5% and 1.25%, an improvement over the prior projection of a possible 2% drop.

"Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track," Cahillane added. "Relative to last year, our market share, sales, and volume trends are improving in every region. We are increasingly meeting consumers where they are, and giving them more reasons to choose our brands."

Shares of Kraft Heinz were up about 5% Wednesday morning, reflecting investor optimism about the strategic shift.