A major strategic turn at Kraft Heinz has caught the attention—and approval—of Berkshire Hathaway’s new chief executive. In a significant development, Berkshire Hathaway leadership has backed Kraft Heinz’s decision to step back from its previously announced breakup plan.
In fact, Berkshire CEO Abel commends Kraft Heinz for its progress ahead of a planned company split, signaling renewed confidence in the food giant’s direction under fresh leadership.
The decision marks a notable moment in the evolving relationship between Berkshire and one of its largest equity holdings.
Why the Split Was Put on Hold
In its fourth-quarter earnings report, Kraft Heinz CEO Steve Cahillane revealed that after just five weeks at the helm, he had identified more opportunity within the business than initially expected.
According to Cahillane, many of the company’s operational and competitive challenges appear manageable—and within its control. As a result, he announced a pause on the previously planned separation of the Kraft and Heinz brands, a move originally unveiled last September.
The split would have effectively undone the 2015 merger orchestrated with the backing of Warren Buffett, a deal that combined two iconic food brands under one corporate umbrella.
Now, instead of dismantling the structure, management wants to focus on improving competitiveness, sharpening strategy, and strengthening customer relationships.
Greg Abel’s Public Endorsement
The reaction from Berkshire was swift and supportive.
In a statement shared with CNBC and other media outlets, Greg Abel voiced his approval of the decision.
He expressed support for Cahillane and the Kraft Heinz board, emphasizing that pausing the separation would allow management to concentrate fully on improving performance and market positioning.
This show of alignment is important. Berkshire remains Kraft Heinz’s largest shareholder, holding a 27.5% stake valued at approximately $8.1 billion. With that level of ownership, strategic shifts at Kraft Heinz directly impact Berkshire’s portfolio and long-term investment outlook.
It is in this context that Berkshire CEO Abel commends Kraft Heinz for its progress ahead of a planned company split, reinforcing confidence in the company’s revised course.
Buffett’s Earlier Disappointment
The company’s change in direction also contrasts sharply with earlier criticism from Warren Buffett.
When the separation plan was first announced, Buffett—who rarely publicly questions the leadership of companies within Berkshire’s holdings—openly admitted his disappointment. In a phone conversation with CNBC’s Becky Quick, he said he was not convinced that breaking the company apart would solve its issues.
He even suggested that Berkshire might consider selling some or all of its stake, a rare and pointed remark from an investor known for his patient, hands-off approach.
“It certainly didn’t turn out to be a brilliant idea to put them together,” he said at the time, “but I don’t think taking it apart will fix it.”
Those words underscored serious concerns within Berkshire about the split strategy.
Was Berkshire’s Share Registration a Factor?
Just weeks before Kraft Heinz reversed course, Berkshire filed an SEC registration statement allowing for the potential resale of up to 99.9% of its 325.6 million shares in Kraft Heinz.
The filing raised eyebrows. Was Berkshire preparing to significantly reduce—or even exit—its position?
Now that the separation plan has been paused, speculation has emerged: did Berkshire’s move influence Kraft Heinz’s reconsideration?
There is no confirmed evidence linking the two events. However, if the share registration filing was intended as subtle pressure, it would represent a departure from Buffett’s traditional hands-off philosophy toward portfolio companies.
Historically, Berkshire has preferred to support management teams rather than influence operational decisions publicly. Whether this situation signals a shift in approach under Abel’s leadership remains to be seen.
Market Reaction to the Announcement
Initially, investors reacted cautiously. Kraft Heinz shares dipped when news of the split reversal broke. However, confidence appeared to return quickly.
By the end of the week, shares had rebounded and closed with a modest 0.7% gain.
The recovery suggests that markets may view the decision to remain intact—and focus on operational improvements—as a more stable and promising path forward.
Berkshire’s Broader Investment Landscape
While attention centers on Kraft Heinz, investors are also watching Berkshire’s broader portfolio activity.
The company is expected to release its latest SEC filing after Tuesday’s market close, revealing holdings as of December 31. Key questions include:
Did Berkshire continue trimming its stake in Apple?
Were there additional reductions in Bank of America?
Has the recently initiated position in Alphabet grown?
What changes occurred in portfolio manager Todd Combs’ holdings following his move to JPMorgan?
Beyond the portfolio update, shareholders are also anticipating Greg Abel’s first annual letter, scheduled for release on February 28. The letter, along with the company’s annual report and fourth-quarter earnings release, will provide further insight into Berkshire’s strategy and financial health.
Berkshire’s Financial Snapshot
As of the latest reporting date:
BRK.A shares trade at $751,425
BRK.B shares trade at $497.55
Market capitalization stands above $1 trillion
Cash reserves total $381.7 billion
No stock repurchases have been made since May 2024
These figures underscore Berkshire’s immense financial strength—and its flexibility when navigating investment decisions.
A New Era of Leadership and Strategy
The pause in Kraft Heinz’s separation plan signals more than just a strategic adjustment. It reflects a broader shift in leadership dynamics.
With Greg Abel now steering Berkshire Hathaway and Steve Cahillane resetting priorities at Kraft Heinz, both companies appear focused on disciplined execution rather than dramatic structural changes.
Most notably, Berkshire CEO Abel commends Kraft Heinz for its progress ahead of a planned company split, reinforcing investor confidence and signaling that the food company’s recovery strategy may be gaining traction.
For shareholders, the message is clear: stability, accountability, and operational improvement are taking precedence over bold corporate restructuring.
Whether this approach delivers sustained growth remains to be seen—but for now, the tone between investor and company is aligned once again.
