USA – Kraft Heinz, a major player in the food industry, is reportedly in the early stages of considering the sale of its Oscar Mayer business, a renowned name in hot dogs, bacon, and ham.

Financial advisors have been enlisted to spearhead the potential sale, aiming to attract offers ranging between $3 billion and $5 billion.

The company has engaged Bank of America and Centreview Partners to explore interest from potential buyers, which could include private-equity firms or other entities within the food industry, according to reports.

This development comes amidst Kraft Heinz’s recent first-quarter results, where it continued to grapple with negative volume trends as consumers, facing financial constraints, sought out more economical alternatives.

While the business narrowly missed Wall Street expectations, with net sales experiencing a modest 1.2% year-on-year increase to $6.41 billion, it fell slightly short of analysts’ average projections.

Despite these challenges, Kraft Heinz remains optimistic about its future prospects, with plans to return to historical activity volume levels in the latter half of 2024.

First-quarter net income declined by 3.9% year-on-year to $804 million, while adjusted operating income saw a 1.7% increase to $1.26 billion.

This potential sale comes on the heels of Oscar Mayer’s announcement of its foray into the plant-based market, with plans to introduce meatless versions of its popular hot dogs and sausages later this year.

Branded as “NotHotDogs” and “NotSausages,” these products aim to offer consumers the smoky, savory taste and meaty texture they crave, addressing perceived shortcomings in existing vegan alternatives.

Kraft Heinz saw this move as an opportunity not only to tap into the burgeoning plant-based market but also to address consumer dissatisfaction with current vegan offerings.

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