This carefully selected group of stocks captures companies that may follow Kraft Heinz's $20B spin-off strategy. Our investment professionals have identified players poised to create shareholder value by separating legacy assets from high-growth brands in the evolving consumer packaged goods sector.
Published on July 14
When big food companies restructure, the market often rewards both the parent company and the spin-off. These corporate moves can lead to significant stock price increases as each entity focuses on what it does best.
Many of these companies have valuable brands buried within larger portfolios. As they separate high-growth assets from legacy products, investors could benefit from the market's reassessment of their true worth.
Consumer staples typically offer defensive, dividend-paying stability, but this group adds a tactical growth angle through potential corporate restructuring. It's a unique opportunity to combine safety with upside.
The "bigger is better" model in consumer packaged goods is being challenged. Companies that separate slow-growth legacy brands from high-growth product lines can unlock significant shareholder value. This restructuring trend, highlighted by Kraft Heinz's potential $20B spin-off, creates investment opportunities across the sector.
This collection includes three types of companies: potential restructuring candidates with diverse portfolios, successful examples of previous spin-offs, and specialized players already benefiting from focused brand strategies. While part of the defensive consumer staples sector, these stocks offer tactical growth potential.
These companies were selected because they either face similar pressures as Kraft Heinz to streamline their portfolios, have already successfully executed spin-offs, or represent the focused, nimble business models that larger corporations are trying to achieve through restructuring.
Market capitalisation breakdown for the 'Unlocking Value in Packaged Foods' basket.
K: $28.88B
MDLZ: $79.90B
CPB: $9.25B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Here are a few of the assets in this group. Create an account to unlock the full list.
Kellogg Co.
K
Current Price
$83.44
Kellanova, having already spun off its cereal business (WK Kellogg), exemplifies the strategy of separating slower-growth assets to focus on its highe...
Kellanova, having already spun off its cereal business (WK Kellogg), exemplifies the strategy of separating slower-growth assets to focus on its higher-growth global snacking portfolio, making it a model for the KHC strategy.
MONDELEZ INTL INC
MDLZ
Current Price
$63.97
Mondelez, which itself was spun off from Kraft Foods Inc. in 2012, is a successful example of a focused snacking powerhouse that could be a benchmark ...
Mondelez, which itself was spun off from Kraft Foods Inc. in 2012, is a successful example of a focused snacking powerhouse that could be a benchmark for the new, streamlined Kraft Heinz entity.
THE CAMPBELLS COMPANY
CPB
Current Price
$24.09
Campbell Soup has a diverse portfolio of meals, beverages, and snacks, making it a potential candidate for a similar strategic review to unlock value ...
Campbell Soup has a diverse portfolio of meals, beverages, and snacks, making it a potential candidate for a similar strategic review to unlock value by separating its different business lines.
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Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+38.03%
On average, analysts expect assets in this group to grow 38.03% over the next year.
8 of 14 assets in this group are rated Buy by professional analysts.
