Kraft Heinz Stock Was Safe Under Buffett's Berkshire — Now, Investors React as Successor Plans to Offload Entire Stake

Berkshire Hathaway is the largest shareholder of the ketchup maker Kraft Heinz (Nasdaq: KHC). The steady dividend-paying stock fell by 5.7% on Wednesday after the food giant revealed in a regulatory filing that Berkshire Hathaway (NYSE: BRK.A/BRK.B) is considering the option to sell over 325.4 million shares, worth more than $7.2 billion (£5.3 billion) at the latest closing price of $22.40 (£16.69).

Kraft Heinz's stock has declined by nearly 70% from its 2017 highs. Berkshire Hathaway, under Warren Buffett's leadership, orchestrated the merger of Kraft and Heinz in 2015. However, the combined company has struggled to keep pace with changing consumer tastes and rising competition over the past decade.

Buffett Disappointed with Business Split

Kraft Heinz now plans to split the business, with the separation expected to be completed by the second half of 2026. Management believes that the move could help streamline operations, but the announcement made in September 2025 did little to excite investors.

Even Buffett expressed his discontent last year, telling a media outlet that he was 'disappointed' with Kraft Heinz's decision to split. Now, his successor, Greg Abel, appears to be following his predecessor's sentiments.

Following a reduction in its stake in Q2, Berkshire Hathaway owned 27.5% of Kraft Heinz's outstanding common stock. This major stake and the backing of a vast investor following mean that any loss of Berkshire's support could dampen confidence in Kraft Heinz's shares, especially after a period of sustained decline.

Berkshire Recorded Massive Losses from the Kraft Heinz Stock

In its Q2 filing, Berkshire Hathaway disclosed that its unrealised loss was 'other-than-temporary', recording a pre-tax write-down of $4.9 billion (£3.7 billion) on the stock. The company also flagged uncertainty regarding how trade tensions and tariffs could impact its businesses.

'It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results,' Berkshire Hathaway stated.

Greg Abel's Leadership Style Different from Buffett's

While there is no indication that Berkshire has begun selling its Kraft Heinz shares, CFRA Research analyst Cathy Seifert suggests that this move could signify the start of a broader review of Berkshire's holdings.

'My sense is that Greg Abel's leadership style may be a departure from Buffett's, and this sale, if completed, would represent a shift in corporate mindset. Berkshire under Buffett typically only made acquisitions, not divestitures. It's not inconceivable, in our view, that Abel may likely assess every Berkshire subsidiary and decide to jettison those that do not meet his internal hurdles,' the analyst explained.

Meanwhile, Chris Ballard, managing director of Check Capital, said that 'selling Kraft is probably the most low-hanging fruit for Greg. We personally wouldn't be sad to see the holding go,' adding that it would be challenging for Berkshire to entirely offload all of its Kraft Heinz shares on the public market given the size of its stake. He is now contemplating whether there could be a large prospective buyer interested in acquiring the entire holding.

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