Kraft Heinz has appointed former Kellanova chief Steve Cahillane as group CEO ahead of next year’s targeted business split.
Cahillane will take up the position, and a seat on the board, on 1 January but will then become CEO of Kraft Heinz’s Global Taste Elevation Co. when the separation unfolds, scheduled for the first half of 2026.
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A search for a CEO to head up the other half of the new business – North American Grocery Co. – is due to start, the Kraft mac & cheese and Maxwell House coffee brand owner said in a statement.
Meanwhile, current group CEO Carlos Abrams-Rivera, who took the hot seat on 1 January 2023, will relinquish his position at the start of the new year but will remain as an adviser until 6 March. He had been due to take the CEO position at Kraft Heinz’s new grocery unit.
As part of the shake-up, Miguel Patricio, who was CEO from mid-2019 until being succeeded by Abrams-Rivera, will be replaced as board chair by John Cahill.
Cahillane has been freed up since Mars’ takeover of Kellanova was cleared by European competition authorities last week, the final hurdle following previous clearance in the US. He held the president and CEO roles at Kellanova, which itself was the subject of a business split in 2022-23 from what was the breakfast cereal and snacks giant Kellogg Co.
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By GlobalData“I am honoured to be joining Kraft Heinz as CEO at such a pivotal and exciting time,” Cahillane said. “I’m confident the planned separation will accelerate the company’s ability to compete and win in today’s environment and unlock the immense opportunity in front of us.”
Kraft Heinz said it reached a “severance separation agreement” with Abrams-Rivera today (16 December), whereby he will no longer serve as CEO or a member of the board.
From 1 January, Patricio will “resign” from the company and “step down” as executive board chair but will remain as a “non-employee director”.
Current vice chairman Cahill will assume the board leadership role from the same date.
Cahill said: “I want to express the board’s deep gratitude to Miguel for stepping in to help prepare the company and leadership team for the proposed separation.
“I look forward to taking on the role of chair as we usher in an exciting new era for the company, with Steve Cahillane at the helm.”
Before Kellanova, Cahillane was CEO of Kellogg prior to the business separation. He also previously headed up The Nature’s Bounty Co. and has also served as an executive at The Coca-Cola Co. and AB lnBev during his career.
“Steve is uniquely qualified to lead this organisation into the future and we are delighted he will be taking on the role of CEO,” Patricio said.
He added: “On behalf of the board and everyone at Kraft Heinz, we are incredibly grateful to Carlos for his many contributions to the company, serving not only as CEO but in other critical leadership roles.
“Carlos helped transform the company into a more agile and innovative organisation and laid the groundwork for the upcoming separation.”
Challenges remain at Kraft Heinz, however, before the business split is completed next year.
In October, the company painted a more bearish outlook for the year’s sales and profits as it reported a third-quarter decline in volumes. The previously predicted 1.5% to 3.5% drop in organic sales was adjusted to a decrease of 3% to 3.5%.
Elsewhere, adjusted operating income in constant currency terms was forecast to fall 10% to 12% instead of the prior outlook for a 5-10% decrease. And adjusted EPS was outlined in the $2.50 to $2.57 range, compared to former guidance of $2.51 to $2.67.
