Kraft Heinz to divest North American coffee business
The Kraft Heinz Co. is divesting its North American coffee business in a deal valued at US $650 million as the company continues its plan to transform its business.
Brands included in the transaction are Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka Brands.
The proposed deal with private equity firm One Rock Capital Partners is expected to close mid-2027. Kraft Heinz will retain a 30% non-controlling equity stake in the business.
“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, in a press release.
Net cash proceeds after taxes are expected to be around $500 million. The proceeds are expected to be used to pay down debt, the company said.
READ: Kraft Heinz Canada to invest $250M in Montreal plant upgrade
The deal is expected to include the assets, brands, customer support and functional resources needed to operate the North America coffee business.
Kraft Heinz said it expects some 250 full-time employees across supply chain, sales, marketing, finance, people and performance and R&D to transition with the business, along with its coffee manufacturing facilities in Jacksonville, Florida and Vancouver, B.C.
The announcement comes as Kraft Heinz reports net sales of $6.12 billion in its third quarter, down from $6.24 billion last year. Net income for the quarter came to $536 million, down from $613 million in 2025.
“Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” Cahillane said in Kraft Heinz's third quarter earnings press release. “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.”
