Kraft Heinz’s decision to pause a previously announced breakup plan drew support from Berkshire Hathaway CEO Greg Abel — a notable development for a consumer-staples stock with a large, influential shareholder.

## What happened

Kraft Heinz said it would **pause work** on its planned separation of the Kraft and Heinz businesses, a strategy first announced last September.

New CEO Steve Cahillane said the company’s opportunity is larger than expected and that many challenges are fixable, prompting the decision to halt the separation effort.

Berkshire Hathaway, which holds a **27.5% stake** in Kraft Heinz, publicly supported the move. Abel said the pause allows management to focus on strengthening competitiveness and serving customers.

## Why it matters for markets

For investors, the key market takeaway is the potential reduction of a share-overhang risk.

Berkshire had recently filed paperwork indicating the potential resale of up to nearly all of its Kraft Heinz position, and Warren Buffett had previously criticized the breakup plan. The reversal may lower the probability of near-term selling pressure from Berkshire — an important consideration for KHC’s stock and liquidity.

## What to watch next

- Management’s operational turnaround milestones

- Updated guidance and margin trajectory

- Berkshire’s actions in subsequent filings (any stake changes)

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Source: CNBC (link below)