Kraft Heinz eyes breakup

Kraft Heinz is reportedly planning a breakup, preparing to split off many of its food products from its faster-growing condiments, sauces, dressings and spreads, WSJ reports.

• 📉 The food giant, formed through the merger of Kraft Foods and H.J. Heinz, has seen $57 billion in market value wiped off since finalizing that deal a decade ago.
• Its market cap today is less than $32 billion.

Catch up quick: The company said back in May that it was evaluating potential strategic transactions, a process it said had already been going on for months.

• At the same time, Berkshire Hathaway — its largest shareholder — said it was giving up its two spots on Kraft Heinz's board.

🥑 The big picture: Kraft Heinz, like other packaged food companies, has been caught in a wave of shifting consumer preferences away from processed foods in favor of healthier alternatives, WSJ noted.

• 💵 More recently, the industry's taken a hit from cost-conscious shoppers gravitating to cheaper store-branded products.

Zoom in: The company's food brands include Kraft Mac & Cheese, Oscar Mayer and Lunchables, in addition to products from frozen meals to dry packaged desserts.

• Its condiments and sauces include its namesake Ketchup, and a variety of salad dressings, specialty sauces and barbecue sauces.

Zoom in: A separation could be finalized "in the coming weeks," though the company's board has yet to sign off on any specific plan, WSJ reported, citing people familiar with the matter.

Market impact: Kraft shares closed up 2.5%.