In April 2025, Berkshire’s corporate website stopped listing Kraft Heinz as one of its subsidiary brands, which had historically included insurance units and wholly owned businesses.
- Warren Buffett’s company took a significant financial hit in the second quarter of 2025 after lowering the value of its investment in Kraft Heinz by $5 billion before taxes.
- The decision came after Kraft Heinz’s stock fell significantly since the company was created through a merger in 2015.
- In September, Kraft Heinz announced it would separate into two independent, publicly traded firms through a tax-free spin-off.
Berkshire Hathaway Inc. (BRK.A, BRK.B) has reportedly altered how it presents its relationship with The Kraft Heinz Co (KHC) weeks before its investment write-down and board of directors exit.
Warren Buffett’s company took a significant financial hit in the second quarter of 2025 after lowering the value of its investment in Kraft Heinz by $5 billion before taxes. The decision came after Kraft Heinz’s stock fell significantly since the company was created through a merger in 2015, making it one of Berkshire’s few long-term investments that failed to meet expectations.
Board Exit And Impairment Charge
According to a Business Insider report, in April 2025, Berkshire’s corporate website stopped listing Kraft Heinz as one of its subsidiary brands, which had historically included insurance units and wholly owned businesses.
Weeks after this update, in May, company representatives stepped off Kraft’s board of directors, and in its Q2 financial results, the company said it recorded a roughly $5 billion impairment adjustment on its roughly 27% holding in the food giant, reducing the stake’s book value to align with its current market valuation.
Berkshire class B stock inched 0.1% lower in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels.
Factors Behind The Write-Down
According to the report, executives at Berkshire said they evaluated several factors before taking the loss, including how long they planned to retain the stake and the severity of Kraft Heinz’s share-price decline.
Internal shifts at Kraft Heinz and its exploration of strategic alternatives further influenced the determination that Kraft’s unrealized loss was not temporary.
In September, Kraft Heinz announced it would separate into two independent, publicly traded firms through a tax-free spin-off.
According to a CNBC report, Warren Buffett expressed his disappointment with Kraft Heinz’s decision to split into two separate companies. He noted that the move has undone the 2015 merger he helped create.
Berkshire Hathaway owns about 27.5% of Kraft Heinz, a stake worth roughly $8.9 billion, making it the largest investor in the food company.
BRK.B stock has gained over 10% year-to-date.
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