Kraft Heinz To Sell North America Coffee Business For $650M, Raises Full-Year Sales Outlook

• The company expects approximately $500 million in after-tax net cash proceeds from the deal, which it plans to use to pay down debt. 
• Kraft Heinz reported Q3 adjusted EPS of $0.53, beating estimates, while net sales fell 2% year over year to $6.115 billion but topped expectations, according to Fiscal.ai.
• The company declared a quarterly dividend of $0.40 per share, payable Dec. 23 to shareholders of record as of Dec. 4.

Kraft Heinz (KHC) has agreed to sell its North America coffee business to an affiliate of One Rock Capital Partners for an enterprise value of $650 million, while retaining a 30% non-controlling equity stake.

“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation,” CEO Steve Cahillane said.

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KHC shares traded 5.5% higher at the time of writing.

Kraft Heinz Expects $500M In Net Proceeds From Coffee Sale

The deal includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands. Kraft Heinz expects the transaction to close in mid-2027, subject to regulatory approval and customary closing conditions. 

The company expects approximately $500 million in net cash proceeds after taxes and plans to use the funds to pay down debt. The transaction is expected to be growth- and margin-accretive for Kraft Heinz. Approximately 250 employees and coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia, are expected to transfer with the business. 

Q3 Earnings Beat Estimates

Kraft Heinz also reported its third-quarter earnings, with adjusted earnings per share (EPS) of $0.53 per share, beating estimates of $0.42, while net sales fell 2% year-over-year to $6.12 billion, coming in above the $6.09 billion estimate, according to estimates compiled by Fiscal.ai.

“Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” Cahillane said. “Relative to last year, our market share, sales, and volume trends are improving in every region,” he added.

However, adjusted operating income fell 15.2% to $939 million, primarily due to inflationary pressures in procurement and logistics costs, higher variable compensation, unfavorable volume/mix, and increased advertising expenses.

Kraft Heinz narrowed its full-year 2026 organic net sales outlook to a decline of 0.5% to 1.25%, compared with its previous forecast of a 0.5% to 2% decline. The company also raised its adjusted EPS outlook to $2.07 to $2.13 from $2.03 to $2.09, while maintaining its forecast for a 16% to 18% decline in constant-currency adjusted operating income.

Separately, Kraft Heinz’s board declared a quarterly dividend of $0.40 per share, payable on Dec. 23, 2026, to shareholders of record as of Dec. 4, 2026.

How Does Retail React To KHC

On Stocktwits, retail sentiment around the stock remained ‘bearish’ amid ‘normal’ message volumes in the past 24 hours.

KHC shares have gained over 5.6% year-to-date.

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