Five months ago the global food company Kraft Heinz said it would split into two independent companies, but it's now backing away from the plan following a challenging year.The Chicago-based company said Wednesday it would instead invest $600 million in its U.S. business on marketing, sales, researc h and development and other areas — with research and development investments increasing by 20% in 2026.“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan,” Kraft Heinz CEO Steve Cahillane said in a news release. “As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.”Cahillane joined the company on Jan. 1, signing on to lead Kraft Heinz through its anticipated split. “I think [the separation] makes logical sense, and I think the board came to the right conclusion at the time," he said during the company's earnings call Wednesday. "What I've since learned is how much opportunity there is to fix the business in the short term and to turn the business around in a more positive trajectory.”Cahillane didn't provide an end date for the pause, but said he hopes to see an upward trend for the business by the end of this year.Kraft and Heinz merged in 2015, creating the fifth-largest food and beverage company in the world. But the merger failed to generate real improvement in sales and profitability, according to Morningstar analyst Erin Lash.In the following decade, the company suffered from shifting consumer tastes toward health-conscious foods and away from processed foods that populate the brand’s portfolio, like Velveeta Cheese and Oscar Mayer lunch meats. The company also failed to invest in its wide-reaching legacy brands, according to Cahillane.“It is clear that we have historically underinvested in our brands and in the business, resulting in persistent share loss over the last decade,” he said.The company announced in September that it would be splitting into two publicly-traded companies, with the separation wrapping up in the second half of 2026. The plan was to split its faster-growing sauces, spreads and seasonings brands, like Heinz and Kraft Mac Cheese, from its legacy brands such as Oscar Mayer.But now, it will remain as one company with a focus on returning the business to growth. For example, the company plans to launch a new type of Kraft Mac Cheese, called PowerMac, later this year that will have 17 grams of protein and six grams of fiber, Cahillane said.“The $600 million, I think, gives us a lot of confidence that we've got what it takes,” he said. “With half of that being against the brands and showing up for consumers with the right opening price points, the right promotional opportunities and the right brand marketing against what are really iconic and wonderful brands that I've already said do respond to investment.”He also emphasized plans to adjust its pricing to better meet shoppers' budgets. "We believe we can get back to price points that are more friendly to consumers, and we can do that pretty quickly," he said.That'll be essential for its Supplemental Nutrition Assistance Program customers. "SNAP is obviously a headwind in consumer goods because the consumer that's under the most pressure is having money removed from their household budget," Cahillane said.The company said about 13% of its U.S. retail business comes from SNAP, compared to 11% for the overall industry.Kraft Heinz reported revenue dropping 3.4% to $6.4 billion in the three months ended Dec. 27. For 2025, revenue was $24.9 billion, down 3.5% year over year. Related Chicago food companies like Mush, Farmer’s Fridge flourish as consumers move away from processed foods Kraft Heinz gets new CEO with longtime Chicago ties San Francisco sues Chicago food giants over ultra-processed products ...read more read less