The Kraft Heinz Company
Packaged Foods and CondimentsFounded 2015- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
The Kraft Heinz Company
Company History
Founded 2015 in Chicago, Illinois
Last reviewed: 2026-06-06 · By Swet Parvadiya
The Kraft Heinz Company generated $25.84 billion in net sales during fiscal year 2024, operating a massive portfolio of iconic food brands that command significant shelf space across global retail and foodservice channels. The company's business model relies on high-volume, low-margin packaged goods, specifically dominating the North American condiment, snack, and meal solution categories. Following a tumultuous period marked by a $15.4 billion goodwill impairment in 2019 and a subsequent SEC investigation into procurement accounting, the company has pivoted toward revenue growth management and strategic brand divestitures. Under the leadership of CEO Steve Cahillane, who assumed the role in January 2026, Kraft Heinz paused its planned corporate separation into two independent public entities, opting instead to deploy a $600 million capital investment directly into its US manufacturing and marketing infrastructure. The company's competitive moat is anchored by the Heinz ketchup brand, which maintains over 60% market share in the United States and commands a persistent price premium against private-label competitors. With approximately 36,000 employees globally, Kraft Heinz continues to navigate severe volume headwinds caused by cumulative food inflation, utilizing its unmatched distribution network to defend its position against aggressive private-label expansion and shifting consumer preferences toward fresh and plant-based alternatives.
James L. Kraft was an American entrepreneur who founded the Kraft cheese company in 1903. Starting with a single horse and wagon in Chicago, Kraft built a wholesale cheese business that grew into a global food giant. His most significant innovation was the development of a pasteurization process in 1915 that allowed cheese to be packaged and shipped without spoiling. This breakthrough was critical during World War I, when the US military needed non-perishable food sources for its troops, leading to massive contracts that established Kraft as a major industrial player. Kraft's introduction of Kraft Dinner (Macaroni & Cheese) in 1937 further cemented the company's place in American culinary culture, providing an affordable, long-shelf-life meal during the Great Depression and World War II. Kraft's business philosophy was centered on innovation, quality, and scale, principles that guided the company's growth for over a century before its merger with Heinz in 2015.
Henry John Heinz was an American entrepreneur who founded the H.J. Heinz Company in 1869. Starting with a small bottling operation for horseradish in Sharpsburg, Pennsylvania, Heinz built a food empire based on a commitment to quality and transparency. His decision to use clear glass bottles for his horseradish was revolutionary, allowing consumers to see the purity of the product, a stark contrast to the adulterated foods that dominated the market at the time. Heinz introduced his iconic tomato ketchup in 1876, which became the foundation of the company's global success. The company's famous '57 Varieties' slogan was adopted in 1896, inspired by a shoe store advertisement Heinz saw while riding a train in New York City. Heinz was a pioneer in food safety and employee benefits, introducing medical insurance and recreation facilities for his workers decades before they became standard practice. His commitment to quality, transparency, and employee welfare established a corporate culture that guided the Heinz company for over a century before its merger with Kraft in 2015.
Henry John Heinz starts bottling horseradish in Sharpsburg, Pennsylvania, using clear glass bottles to demonstrate product purity, establishing the foundation for the Heinz brand.
The Heinz company introduces its iconic tomato ketchup, which becomes the foundation of the company's global success and the most recognized condiment brand in the world.
James L. Kraft starts a wholesale cheese business in Chicago with a horse and wagon, laying the groundwork for what would become the Kraft Foods empire.
Kraft develops a pasteurization process that allows cheese to be packaged and shipped without spoiling, leading to massive contracts with the US military during World War I.
Kraft introduces Kraft Dinner (Macaroni & Cheese), a product that becomes a staple of the American diet during the Great Depression and World War II due to its affordability and long shelf life.
Kraft introduces Kraft Singles, individually wrapped processed cheese slices that become one of the best-selling cheese products in the United States.
Philip Morris Companies acquires Kraft for $12.9 billion, one of the largest corporate acquisitions in history at the time, marking the beginning of a new era of consolidation for the company.
Kraft Foods acquires the British confectionery giant Cadbury for $19.6 billion, significantly expanding its global snack and confectionery portfolio before spinning off its North American grocery business in 2012.
Kraft Foods Group merges with H.J. Heinz Company in a transaction orchestrated by 3G Capital and Berkshire Hathaway, valued at approximately $100 billion including debt, creating the fifth-largest food and beverage company in the world.
The company records a $15.4 billion goodwill impairment related to its Kraft natural cheese and Oscar Mayer brands, alongside a $1.1 billion SEC settlement regarding the misclassification of supply chain procurement costs.
The company divests its natural cheese business to Lactalis for $3.2 billion, a strategic retreat from a highly competitive, low-margin category where it lacked scale and cost advantages.
Steve Cahillane assumes the role of CEO, immediately halting the planned corporate separation and authorizing a $600 million capital deployment into US manufacturing and marketing.
The merger of Kraft Foods Group and H.J. Heinz Company was orchestrated by 3G Capital and Berkshire Hathaway to create the fifth-largest food and beverage company in the world, predicated on the belief that the combined entity could extract massive cost efficiencies by applying 3G's rigorous zero-based budgeting model.
Kraft Heinz invested $200 million in the Chilean foodtech startup NotCo to form a joint venture aimed at capturing the plant-based protein market without bearing the full capital risk of internal R&D.