Kraft Mulls Divestiture of Ore-Ida Brand

April 30, 2019

3 Min Read
Kraft Mulls Divestiture of Ore-Ida Brand
Kraft Heinz is exploring options to shed its Ore-Ida brand of frozen potato products. Image courtesy of Flickr user Willis Lam

As a new chief executive officer prepares to take the helm of Kraft Heinz and works to recover from poor financial results in its latest quarterly report, the American food company is considering a divestiture of its Ore-Ida brand of frozen potato products. 

According to a recent CBC News report, Kraft hired Evercore Partners, an investment bank, to explore options to sell Ore-Ida. Sources told the news organization that the brand could be sold for $1.5 billion to $2 billion and that Kraft would also consider shedding its frozen foods business as a whole. 

Kraft’s earnings report for the fourth quarter of 2018, released in February, included a $15 billion reduction in the value of its assets and revealed that the company is facing a probe by the U.S. Securities and Exchange Commission (SEC). 

This month, the company announced that its chief executive officer, Bernardo Hees, will step down from his role to be replaced by former AB InBev executive Miguel Patricio. He is slated to take on his new role on July 1. Hees, who served as Kraft Heinz’s CEO for the past six years, will remain in his post until June 30.

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