Big Food gets leaner with divestitures and breakups as consumers turn away from packaged snacks

January 31, 2026

TL;DR

Companies like Unilever, Kraft Heinz, and Keurig Dr Pepper are splitting up or divesting brands.
This trend is driven by consumer pushback against ultra-processed foods and regulatory pressure.
Divestitures are a significant part of mergers and acquisitions activity in the consumer products industry.
Companies are shedding underperforming brands to improve business performance and win back investors.
Changing consumer preferences, with a focus on fresh produce and protein, have impacted sales of processed foods.
The rise of GLP-1 drugs has also affected consumer appetite for certain snacks.
Activist investors are pushing companies to focus on core offerings and divest non-core businesses.
Some past mergers, like Keurig Dr Pepper's in 2018, are now being unwound due to questionable logic.
Kraft Heinz's struggles are attributed to aggressive cost-cutting and a lack of investment in brands during changing consumer tastes.
General Mills is selling its Muir Glen brand, and Nestle is reportedly considering sales of its water unit, Blue Bottle coffee, and vitamin brands.
Acquisitions are increasingly focusing on smaller, 'insurgent brands' rather than large-scale mergers.
Some analysts believe that focusing on underlying business capabilities is more crucial than divestitures alone.

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