The Kraft Heinz Company announced Nov. 4 that it will divest its North America coffee business to private equity firm One Rock Capital Partners. At the same time, the company released its third quarter results showing improving trends in every region and appointed two new independent directors – including longtime Kroger CFO Mike Schlotman – as the company advances its transformation strategy.
Coffee business sold at $650 million value
Kraft Heinz entered a definitive agreement to sell its North America coffee business – including the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands – to an affiliate of One Rock Capital Partners at an enterprise value of $650 million. Kraft Heinz will retain a 30 percent non-controlling equity stake.
The transaction is expected to close in mid-2027, subject to regulatory approval. Approximately 250 full-time employees are expected to transition with the business, along with coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia. Net cash proceeds of approximately $500 million are planned for debt paydown, and the company expects the deal to be growth and margin accretive.
“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. “We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock’s focused ownership.”
“We have long admired Kraft Heinz’s iconic coffee brands, such as Maxwell House and Gevalia, which have been household staples for more than 100 years,” said Tony W. Lee, managing partner of One Rock. “We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners.”
Q3 sales dip as outlook’s low end rises
Net sales decreased 2 percent to $6.1 billion in the third quarter ended Sept. 26, with organic net sales down 1.1 percent. North America sales fell 3.4 percent, with volume/mix declines in meats, sauces and refreshment beverages, while emerging markets grew 13.8 percent. Price was flat companywide.
“Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” Cahillane said. “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.”
The company raised the low end of its full-year organic net sales outlook to a range of down 0.5 percent to down 1.25 percent, a forecast that includes an approximate 100 basis point impact from incremental SNAP challenges. Operating income declined 14.6 percent to $875 million, pressured by inflation in procurement and logistics costs, higher variable compensation and increased advertising investment, the company said.
Dilts, Schlotman join the board
Effective Nov. 4, Kelly Dilts and J. Michael “Mike” Schlotman were appointed to the Kraft Heinz board of directors.
Dilts, CFO of Nordstrom, brings more than 30 years of experience in retail finance, strategic planning and operations. She previously spent six years at Dollar General, most recently as EVP and CFO.
Schlotman spent more than 30 years at The Kroger Co., including almost 20 years as CFO, helping shape initiatives in cost efficiency, digital growth, analytics and new profit streams. He served on the board of Kellanova prior to its acquisition by Mars in December 2025.
“Kelly and Mike have spent their careers deeply connected to the consumers, customers and market forces that shape our industry,” Cahillane said. “Their experience leading scaled businesses through change will be invaluable as we sharpen our focus, strengthen our brands, and continue to build a more profitable Kraft Heinz.”
Kraft Heinz, with dual headquarters in Pittsburgh and Chicago, reported approximately $25 billion in net sales in 2025, with brands including Heinz, Kraft, Philadelphia, Primal Kitchen and Lunchables sold in more than 40 countries.
Related: Kraft Heinz Restructures Into 3 Regions, Combines Procurement, Supply Chain