Kraft Heinz is reportedly considering a spinoff of a large chunk of its grocery business as health-conscious American consumers increasingly shy away from processed foods.
The $31 billion food and beverage conglomerate, born out of the 2015 merger of Kraft and Heinz, is said to be mulling the creation of a new entity that would include many Kraft products and could be valued at as much as $20 billion, the Wall Street Journal reported on Friday.
The remaining company would house goods such as sauces and condiments like Heinz ketchup and Dijon mustard brand Grey Poupon, according to the Journal.
Shortly after The Journal published its story at around 1:30 p.m. ET, Kraft Heinz shares surged by nearly 4%. The stock traded at around $27 at 3:30 p.m. ET.
Kraft Heinz, the $31 billion food and beverage conglomerate born out of the 2015 merger of Kraft and Heinz, is