Kraft Heinz explores sale of Italy-based baby-food brand Plasmon

USA – Kraft Heinz is considering selling its Italy-based baby-food business, Plasmon, and has hired investment bank Houlihan Lokey to assist with the process.

The US food giant has not commented on the matter, while Houlihan Lokey also declined to provide any statement.  

It was previously reported in 2019 that Kraft Heinz had put Plasmon up for sale shortly after Miguel Patricio was appointed CEO. 

However, the company never publicly confirmed this move, and later reports indicated that the plan had been abandoned. 

By December of that year, the group announced plans to invest €10 million in Plasmon’s procurement and production.  

Speaking at the CAGNY investment conference in Florida, Kraft Heinz CFO Andre Maciel stated that the company had “actively rotated nearly 20% of our total business over the past six years.” 

He emphasized that portfolio management remains a key priority, with mergers and acquisitions playing a strategic role in accelerating organic growth.

 “Our criteria for either potential acquisitions or partnerships is aligned to our portfolio strategy, sufficient scale while remaining accretive with a bias towards bolt-ons,” he said.  

Kraft Heinz has faced financial challenges, with the company reporting a significant decline in full-year profits. 

Last week, it recorded a US$3.7 billion non-cash impairment loss, impacting its overall financial performance. 

The fourth quarter alone saw a US$1.4 billion impairment linked to its Oscar Mayer brand. 

For the full year, operating profit dropped by 63.2% to US$1.7 billion, with total sales revenue reaching US$25.8 billion. Net income attributable to common shareholders declined by 3.9% compared to 2023.  

Maciel highlighted that the company’s financial position allows it to take a disciplined approach to evaluating assets for sale or acquisition, ensuring fair valuation. 

According to reports, the company has been adjusting its portfolio to focus on businesses that align with its growth strategy. 

While there has been no official confirmation of the potential Plasmon sale, industry analysts suggest that Kraft Heinz may be looking to streamline its operations amid ongoing financial pressures.

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