Kraft Heinz has announced its plan to sell its North American coffee business to private equity firm One Rock Capital Partners for an enterprise value of $650 million. The deal, which includes well-known brands such as Maxwell House and Gevalia, is expected to close by mid-2027. Kraft Heinz will maintain a 30% noncontrolling equity stake in the coffee unit as part of the transaction, signaling a strategic shift toward concentrating on its core product lines.

The company intends to use approximately $500 million of the post-tax proceeds from the sale to reduce its debt load. This divestiture is part of CEO Steve Cahillane’s broader effort to enhance the company’s financial health and growth prospects by focusing investment on areas with greater potential for expansion. Cahillane, who began leading Kraft Heinz in January, has paused previous plans to split the company and is instead emphasizing operational improvements and brand revitalization.

Recently, Kraft Heinz also reported third-quarter earnings that surpassed analysts’ expectations and revised its 2026 outlook. The company now anticipates a smaller decline in organic net sales, projecting a decrease of 0.5% to 1.25%, an improvement from earlier forecasts that suggested a drop of up to 2%. Cahillane highlighted progress in regaining market share and improving sales trends across regions, attributing the momentum to a strategy of aligning more closely with consumer preferences.

This divestiture and the positive earnings update reflect the ongoing transformation at Kraft Heinz under Cahillane’s leadership. By streamlining its portfolio and concentrating on strengthening core brands, the company aims to accelerate both U.S. business recovery and international growth. The stock responded favorably to the news, rising around 5% in after-hours trading on the announcement day.