Kraft Heinz Sells Coffee Unit for $650 Million, Adds Two Directors

By Daniel Okafor

Kraft Heinz agreed to sell its North American coffee business to private equity firm One Rock Capital Partners at a $650 million enterprise value and retain a 30% non-controlling equity stake.

What does the coffee sale change for Kraft Heinz?

Kraft Heinz entered a definitive agreement on Nov. 4, 2026, to transfer the business to an affiliate of One Rock. The unit includes Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka.

Approximately 250 full-time employees are expected to transition with the business. The deal also includes coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia. It is expected to close in mid-2027, subject to regulatory approval.

Kraft Heinz plans to use approximately $500 million in net cash proceeds for debt paydown. The company expects the transaction to be accretive to growth and margin and presents it as part of its broader transformation strategy. Its retained stake will give Kraft Heinz continued equity exposure to the coffee business after the sale.

“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation,” Steve Cahillane, CEO of Kraft Heinz, said.

“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,” Tony W. Lee, managing partner of One Rock, said.

“We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners.”

For Kraft Heinz, the sale combines $500 million of planned debt reduction with a 30% stake and a mid-2027 timetable tied to regulatory approval. That structure keeps part of the coffee upside with Kraft Heinz while One Rock pursues investment and innovation.

Third-quarter performance

Net sales for the third quarter ended Sept. 26, 2026, fell 2% to $6.1 billion, and organic net sales declined 1.1%. Price was flat companywide.

North America sales fell 3.4%, with volume/mix declines in meats, sauces and refreshment beverages. Emerging markets grew 13.8%.

Those figures show how Kraft Heinz can report improving regional trends while consolidated sales still contract: North America remained down, but emerging markets grew 13.8%.

Cahillane said the company’s 2026 operating plan to turn around the U.S. business and accelerate growth internationally remained on track. He said market share, sales and volume trends were improving in every region relative to the prior year. Kraft Heinz also was increasingly meeting consumers where they were and giving them more reasons to choose its brands.

Kraft Heinz raised the low end of its full-year organic net sales outlook to a range of down 0.5% to down 1.25%. The forecast includes an approximate 100-basis-point impact from incremental SNAP challenges.

Operating income declined 14.6% to $875 million. Kraft Heinz cited inflation in procurement and logistics costs, higher variable compensation and increased advertising investment as the pressures behind that result.

Board appointments

Effective Nov. 4, 2026, Kraft Heinz appointed Kelly Dilts and J. Michael “Mike” Schlotman as independent directors.

Dilts is CFO of Nordstrom and brings more than 30 years of experience in retail finance, strategic planning and operations. She previously spent six years at Dollar General, most recently serving as EVP and CFO.

Schlotman spent more than 30 years at The Kroger Co., including almost 20 years as CFO. His work covered cost efficiency, digital growth, analytics and new profit streams. He served on Kellanova’s board before its acquisition by Mars in December 2025.

Cahillane said the two directors’ experience with consumers, customers and market forces would be invaluable as Kraft Heinz sharpened its focus, strengthened its brands and worked to build a more profitable company.

Kraft Heinz has dual headquarters in Pittsburgh and Chicago and reported approximately $25 billion in net sales in 2025. Its Heinz, Kraft, Philadelphia, Primal Kitchen and Lunchables brands sell in more than 40 countries.

For Kraft Heinz, the next test is whether improving regional trends can offset the 2% sales decline while management pursues regulatory approval for a mid-2027 close and prepares to apply $500 million in proceeds to debt.