Kraft Heinz Coffee Sale, Raises Sales Outlook

Kraft Heinz agreed on Nov. 4, 2026, to sell its North American coffee business to One Rock Capital Partners while retaining a 30% noncontrolling stake. The company also raised the low end of its 2026 organic net sales outlook.

Coffee Sale Terms and Third-Quarter Results

Kraft Heinz signed a definitive agreement to divest its North American coffee unit to an affiliate of One Rock at an enterprise value of $650 million. One Rock is expected to take control, with the transaction closing in mid-2027 pending regulatory approval and customary conditions. The deal includes brands such as Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, and Sanka. About 250 employees and manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia, will transfer with the business. Kraft Heinz expects approximately $500 million in net cash proceeds after taxes and plans to use the funds to reduce debt. The company described the sale as a move to simplify its portfolio and focus resources on priority brands.

On the same day, Kraft Heinz reported third-quarter net sales of about $6.1 billion, down 2.0% year over year. Organic net sales declined 1.1%, with foreign currency translation and divestitures reducing reported sales by 0.3 and 0.6 percentage points, respectively. Gross margin rose 60 basis points to 32.5%, while adjusted gross margin fell 40 basis points to 31.9%. Operating income declined 14.6% to roughly $0.9 billion, and adjusted operating income fell 15.2% to a similar level.

Through the first nine months, operating cash flow totaled $3.0 billion, down 4.1%, and free cash flow was $2.4 billion, down 5.2%. Free-cash-flow conversion increased 11 percentage points to 120%, and the company returned $1.4 billion in capital to shareholders year to date.

Kraft Heinz raised the low end of its full-year 2026 organic net sales outlook to a decline of 0.5%–1.25%. It maintained a constant-currency adjusted operating income decline forecast of 16%–18% and set adjusted EPS guidance at $2.07–$2.13. The outlook factors in a roughly 100-basis-point headwind from Supplemental Nutrition Assistance Program (SNAP) effects, an adjusted EPS effective tax rate near 23.5%, interest expense around $890 million, other income near $210 million, adjusted gross margin expected at the low end of the prior range (down 10 to 50 basis points), about $700 million in incremental investment versus 2025, and a 500-basis-point headwind from lapping lower incentive compensation.

Chief Executive Steve Cahillane said the company’s 2026 plan to turn around the U.S. business and accelerate international growth is on track. He noted the raised low end of the outlook reflects momentum built during the year. Management indicated that proceeds from the coffee sale, combined with year-to-date cash generation, will be directed toward debt reduction as part of the turnaround strategy.