By Abigail Summerville

-Investment bankers had pitched a breakup to Kraft Heinz for years without success, sources said. The company finally agreed to a split when it realized that two simpler companies would be easier to manage and understand, garnering higher stock prices.

This strategy is gaining momentum in the world of food & beverage conglomerates.

The consumer food company’s separation into two – one focused on condiments like Heinz ketchup, the other on grocery food brands like hot dog maker Oscar Mayer – results from multiple points of pressure. But perhaps more than anything else, it reflects a changing view that bigger is not always better, because businesses with the most growth potential can get overlooked.

“Big guys have trapped value because they can’t buy something that

See Full Page