Kraft Heinz Opts To Fix What's Broken, Pausing Split in Favor of Stepped-Up Brand Investments

The 2015 Kraft Heinz merger has failed to deliver a durable improvement in sales and profitability. But recently appointed CEO Steve Cahillane sees opportunities to invest in its brands and capabilities—to the tune of an incremental $600 million. With this slated as its prime directive, he's put the firm's pending plans to split on ice. We never thought that separating its operations would bring an enhanced level of focus that would ultimately boost its competitive position or financial prospects. While we look favorably upon this strategic pivot, we recognize it will take time for the fruits of this stepped-up spending to manifest.