Kraft Heinz shares tumbled 3.6% in premarket trading Wednesday following a regulatory filing that revealed Berkshire Hathaway may dump its massive stake in the food company. The move would end a nine-year investment that Warren Buffett himself has labeled a mistake.
The filing disclosed that Berkshire could sell its entire 27.5% position. That amounts to 325,442,152 shares valued at roughly $7.7 billion based on the January 20 closing price of $23.76.
Berkshire first bought into Kraft Heinz during the 2015 merger between Kraft Foods and H.J. Heinz. The deal brought together Brazilian private equity firm 3G Capital and Buffett’s conglomerate as major shareholders.
The combined company hasn’t delivered on its promise. Buffett admitted years ago that he paid too much and was overly optimistic about the food maker’s future.
That optimism cost Berkshire dearly. The company took a $3 billion write-down on the investment in 2019. Another $3.76 billion loss followed in August 2025.
The potential exit comes at a pivotal moment for Kraft Heinz. The company announced plans in September 2025 to split into two separate businesses. One will focus on groceries while the other handles sauces and spreads.
Kraft Heinz blamed its complex structure for the decision to split. Management said the current setup has made it difficult to allocate capital effectively and prioritize initiatives. Scaling promising areas has also been a challenge.
The company pointed to changing consumer preferences as another driver. Shoppers have been moving toward healthier food options, leaving traditional packaged foods struggling.
Sales numbers tell the story. Revenue dropped 3% in 2024 as consumers pulled back. The company has faced criticism for underinvesting in its brands and failing to innovate.
Competition from fresher alternatives has eaten into market share. Rising food prices haven’t helped either, squeezing both the company and its customers.
Steve Cahillane took over as CEO on January 1, 2026. His job is to oversee the split and turn things around. Interestingly, that’s the same day Greg Abel replaced Buffett as Berkshire’s chief executive.
Both Abel and Buffett have voiced opposition to the split. Their resistance may partly explain why Berkshire is preparing to exit. The filing doesn’t guarantee a sale but gives the company the option to sell whenever it chooses.
Wall Street has lost faith in Kraft Heinz. The stock has dropped 19.4% over the past year as problems mounted.
Analysts remain cautious. TipRanks shows a Hold consensus rating with zero Buy recommendations. Thirteen analysts rate it a Hold while one says Sell.
The average price target sits at $25.38. That suggests potential upside of 6.8% from current levels, but few seem excited about the prospects.
The filing leaves the timing of any Berkshire sale uncertain. Kraft Heinz plans to complete its split in the second half of 2026. At the January 20 closing price, Berkshire’s stake is worth roughly $7.7 billion.
The post Kraft Heinz (KHC) Stock Falls as Berkshire Hathaway Files to Exit $7.7 Billion Position appeared first on CoinCentral.
