The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Berkshire Hathaway may be preparing to unwind its long-standing investment in Kraft Heinz, signalling a potential turning point for one of the food industry’s most closely watched ownership relationships.

In a regulatory filing on Tuesday, 20 January, Kraft Heinz disclosed that its largest shareholder, Berkshire Hathaway, may sell up to 325.4 million shares, representing roughly 27% of the company’s outstanding stock.

The disclosure follows Kraft Heinz’s ongoing plans to separate into two independent, publicly traded companies and could mark the end of Berkshire’s more than a decade-long involvement in the food and beverage giant.

Shares of Kraft Heinz fell nearly 4% following the filing, closing at $22.85, while Berkshire Hathaway shares were little changed.

Berkshire chairman Warren Buffett helped orchestrate the 2015 merger of Kraft Foods and Heinz alongside Brazilian private equity firm 3G Capital, betting that the combined company’s iconic brands would generate durable growth and pricing power. At the time, the deal was seen as a defining moment in packaged food consolidation.

Shifting consumer preferences toward fresher, less processed foods, the rise of private label and execution challenges, however, have weighed on performance. Berkshire recorded a $3.76 billion write-down on its Kraft Heinz stake last summer, acknowledging that the long-term value of the investment had fallen short of expectations.

Buffett has publicly expressed disappointment with Kraft Heinz’s strategy, including the company’s decision to split into two businesses, a move unanimously approved by the board last September and expected to be executed as a tax-free spin-off.

Kraft Heinz began formally reviewing strategic options in May, culminating in plans to break apart the company in an effort to simplify operations and allow each business to pursue tailored growth strategies. Management has said the separation will help each new company sharpen focus while maintaining sufficient scale to compete in an increasingly fragmented food and beverage landscape.

The potential sale of Berkshire’s stake adds another layer of transition for the company as it works to redefine itself post-merger.

If executed, a sale would represent one of the most significant portfolio shifts under Greg Abel, who assumed the role of Berkshire Hathaway CEO on 1 January, succeeding Buffett. Under Buffett, Berkshire rarely divested large equity positions, even when performance disappointed.

For the food and beverage sector, Berkshire’s potential exit underscores the challenges facing legacy packaged food companies as they adapt to changing consumer demands and competitive dynamics. Kraft Heinz shares are down about 18% over the past year and more than 60% since the 2015 merger, highlighting the difficulty of sustaining growth through scale alone.

While there is no indication Berkshire has begun selling shares, the sheer size of its position raises questions about how any sale might be executed and whether a strategic or institutional buyer could emerge.