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Kraft Heinz Plummets as Berkshire Considers Sale

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  Published in Stocks and Investing on Wednesday, January 21st 2026 at 14:08 GMT by Investopedia
      Locales: UNITED STATES, UNITED KINGDOM

Omaha, Nebraska - January 21st, 2026 - Kraft Heinz (KHC) is reeling today after news broke that Greg Abel, widely considered the successor to Warren Buffett at Berkshire Hathaway, is reportedly evaluating the sale of a substantial portion of Berkshire's considerable stake in the iconic food manufacturer. The potential divestiture, estimated to involve roughly a third of Berkshire's 274 million shares - a value nearing $12.6 billion - has triggered a significant downturn in Kraft Heinz's stock price and prompted a wider re-evaluation of the company's future prospects.

The immediate impact on the market was swift and severe. Kraft Heinz shares plummeted as much as 6.6% in early trading on Wednesday, before stabilizing somewhat to close down 5.5% at $36.48. This decline has shaved billions off the company's market capitalization, which now hovers around $34.3 billion. Investors are understandably anxious about the implications of such a significant shareholder potentially exiting their position.

A Shift in Investment Strategy?

This potential move signifies more than just a single stock transaction; it suggests a potential paradigm shift in Berkshire Hathaway's investment philosophy. For decades, Warren Buffett has cultivated a reputation as a patient, long-term investor, often holding onto companies for years, even decades, while weathering market fluctuations. Abel's consideration of a large-scale sale of Kraft Heinz shares contrasts sharply with this established approach, signaling a willingness to adopt a more active and potentially quicker-turnaround investment strategy. This could be indicative of a broader re-evaluation of Berkshire's portfolio as the company transitions to a new leadership era.

Analysts are keenly observing this development, wondering whether Abel's move represents a temporary adjustment or a permanent departure from Buffett's renowned buy-and-hold philosophy. The decision, if enacted, could influence other investors' perception of Berkshire's risk appetite and investment horizons.

Kraft Heinz's Ongoing Challenges

The timing of this potential sale is particularly noteworthy given the persistent challenges Kraft Heinz has faced in recent years. The company has struggled to adapt to evolving consumer preferences, particularly the increasing demand for healthier and more sustainable food options. Rising input costs, intense price competition within the packaged foods sector, and a general slowdown in consumer spending have also contributed to the company's struggles. While Kraft Heinz has implemented cost-cutting measures and attempted to streamline its operations, the company's performance has consistently fallen short of expectations.

Berkshire Hathaway's initial investment in Kraft Heinz, alongside 3G Capital, occurred in 2015. The partnership was predicated on a belief in the company's potential for operational efficiencies and a return to growth. However, the subsequent years have proven more turbulent than initially anticipated, with numerous restructuring efforts failing to deliver the anticipated results. The fact that a major stakeholder like Berkshire is now considering a significant exit underscores the depth of those ongoing concerns.

The Future of the Relationship

Beyond the immediate financial implications, this potential sale raises serious questions about the future of the relationship between Kraft Heinz and Berkshire Hathaway. While Berkshire remains a significant shareholder, a substantial reduction in its stake would diminish its influence and potentially alter the dynamics of the partnership. It is unclear whether a reduced stake will impact Kraft Heinz's strategic direction or its access to Berkshire's resources and expertise. Some analysts suggest that the sale might pave the way for Kraft Heinz to pursue a different course, potentially attracting new investors with different priorities.

For now, the market remains on edge, closely monitoring developments and analyzing what this potential shift in Berkshire's strategy signifies for Kraft Heinz and the broader food industry. The next few weeks will be crucial in determining whether Abel ultimately proceeds with the sale and how Kraft Heinz will navigate this period of uncertainty.