Kraft Heinz agrees to sell Maxwell House coffee arm as sales slip

What happened

Kraft Heinz said on Wednesday 4 November that it had agreed to sell its North American coffee business, Maxwell House among it, and reported third-quarter net sales of $6.1 billion, down 2.0 percent. ^{[1, 2, 5, 6]}

The buyer is an affiliate of the private equity firm One Rock Capital Partners, at an enterprise value of $650 million, under an agreement signed on Tuesday 3 November, the 10-Q says. Kraft Heinz keeps a 30 percent stake without control. The brands are Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka. ^{[2, 5, 7, 8]}

Why it matters

The company said it expects about $500 million in cash after taxes from the sale and plans to use it to pay down debt. The sale trims the company while its plan to split into two stays on hold: the board paused that work on Wednesday 11 February, the 10-Q says. ^{[2, 6, 7]}

The quarter

Organic net sales, which leave out currency and businesses sold, were down 1.1 percent, the company reported. North America was down 3.4 percent to $4,485 million, while Emerging Markets grew 13.8 percent to $720 million. ^[1]

Operating income was down 14.6 percent to $875 million. The company put that down to higher buying and shipping costs, higher variable pay, larger impairment charges, lower volume and more advertising. Net income was $536 million, against $613 million a year earlier. ^[1]

For 2026 the company said it now expects organic net sales down 0.5 to 1.25 percent, where it had said down 0.5 to 2 percent. That outlook includes about one percentage point of drag from cuts to SNAP, the federal food aid program, it said. ^[1]

The split and the board

The 10-Q says the separation into two companies, announced on Tuesday 2 September 2025, would need final board approval, favorable tax opinions and effective SEC filings if work resumes. Whether it will be completed 'is uncertain', the filing says. Separation costs were $24 million in the quarter and $90 million over nine months. ^[2]

The 8-K filed under item 5.02 adds two directors, effective Wednesday 4 November: Kelly Dilts, chief financial officer of Nordstrom, and Mike Schlotman, Kroger's chief financial officer for almost 20 years. No officer departs in that filing. ^{[3, 4]}

An earlier 8-K, filed on Tuesday 6 October, reported that general counsel Angel Willis was resigning, effective Tuesday 20 October. ^[9]

What settles it next

The coffee sale is expected to close in mid-2027, subject to regulatory approval, the company said. The split has no date: the 10-Q says the timing, and whether it happens at all, is uncertain. ^{[2, 5, 7]}

Who it reaches

Kraft Heinz (KHC) is direct: it filed the results, the 10-Q and the board change on Wednesday 4 November, and is the seller in the coffee deal. About 250 employees and the coffee plants in Jacksonville, Florida, and Vancouver, British Columbia, are expected to move with the business, the company said. ^{[1, 3, 8]}