Kraft Heinz is reportedly considering the sale of its Oscar Mayer brand, which specializes in packaged meats like hot dogs, bacon, and cold cuts.
According to a report by The Wall Street Journal (WSJ), the food and beverage giant recently consulted Bank of America and Centerview Partners to test the waters to see if there is sufficient interest in Oscar Mayer.
Estimated to be valued between $3 and $5 billion, the possible sale of the hot-dog brand is in line with Kraft Heinz CEO Carlos Abrams-Rivera’s goal of offering healthier products amid growing awareness about the dangers of processed foods.
Kraft Heinz's new CEO is a health nut tasked with selling $27 billion of ketchup, macaroni and cheese and hot dogs to consumers around the globe. Can he remake the processed-food giant? https://t.co/Ru8CAaNrDghttps://t.co/Ru8CAaNrDg
— The Wall Street Journal (@WSJ) May 2, 2024
“It’s not a one-year thing, it’s not a one-moment thing. You have to bring consumers along with this journey,” the CEO said talking about the company’s long-term nutritional upgrades.
The self-confessed “health nut,” previously Kraft Heinz’s EVP and president of the North America zone, took over former CEO Miguel Patricio’s position in January 2024.
It's yet unclear whether a sale of Oscar Mayer will push through.
Speculations About the Potential Sale
Speculations about the food and beverage company selling one of the oldest brands it acquired are spreading.
On top of Kraft-Heinz going the healthier route, one of the reasons for exploring the sale of Oscar Mayer is to mitigate “market-share losses in cold cuts linked with supply-chain challenges,” the magazine said.
This adds to a first-quarter earnings report that reportedly disappointed investors with a 1.2% decrease in net sales and 0.5% lower organic net sales.
Selling Oscar Mayer is speculated to be a step toward increasing investor confidence and consolidating the business.
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Oscar Mayer recently ventured into plant-based products to offer healthier options for its packaged meats.
The brand partnered with TheNotCompany, a food-tech firm specializing in animal-based alternatives, to form The Kraft Heinz Not Company and launch “NotHotDogs” and “NotSausages” in March.
“We know people are hungry for plant-based meat options from brands they know and trust,” The Kraft Heinz Not Company CEO Lucho Lopez-May shared in a press release at the time.
