Episode summary
BI Weekend: Kraft Heinz Split, Macy’s Earnings | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Jennifer Bartashus, Kenneth Shea, Jennifer Rie, Mark Gurman, Emily Cohn, Antoine Vagneur-Jones, Shaheen Contractor
Summary
Kraft Heinz said it will split into two publicly traded companies, a move the host and Jennifer Bartashus framed as an attempt to revive growth after a decade of slower packaged-food demand. Bartashus said the merger never achieved its original promise because consumer preferences shifted toward fresher and healthier options, leaving shelf-stable brands under pressure. She said the breakup should sharpen strategy, though it comes with about $300 million in dis-synergies and likely more promotional spending across the category.
The show then turned to PepsiCo after Elliott Investment Management disclosed a roughly $4 billion stake. Kenneth Shea said Elliott is pushing for structural fixes rather than a full breakup, especially refranchising the beverage bottling business and rationalizing weaker snacks and Quaker products. He argued PepsiCo’s weak stock performance and flat earnings outlook make it likely the debate will continue.
Later, Jennifer Rie said the Google remedies ruling was more limited than the Justice Department wanted, with no Chrome divestiture and continued default search payments. Mark Gurman said Apple’s AI problem is increasingly a product problem, not just a talent problem, while Emily Cohn said Macy’s saw improving comparable sales even as tariffs and cautious spending remain a concern. Antoine Vagneur-Jones described a more uncertain clean-energy outlook under Trump policy changes, and Shaheen Contractor said EU rule clarification could increase ESG fund exposure to nuclear arms.
Key takeaways
- Jennifer Bartashus said Kraft Heinz’s split reflects a slow consumer shift away from shelf-stable packaged foods and toward fresher, healthier choices.
- Kenneth Shea said Elliott sees value in refranchising PepsiCo’s bottling operations and trimming weaker food lines rather than forcing a full breakup.
- Jennifer Rie said the Google ruling was unexpectedly favorable on defaults, allowing Google to keep paying for search placement with Apple and Mozilla.
- Mark Gurman said Apple’s AI lag only becomes a major investor problem if it starts hurting the consumer experience and smartphone share.
- Emily Cohn said Macy’s turnaround is being led by reimagined stores, while tariffs may still pressure margins later this year.
- Antoine Vagneur-Jones said US clean-energy investment is slowing because policy uncertainty and tighter rules are making financing harder.
Notable quotes
“It was just about a decade ago that they put the companies together um with the plans that it would become kind of a a package food powerhouse”
“the company expects about $300 million in dynergies”
“it's really just a matter of time where these talks are going to be revived”
“No divestature of Chrome or contingent divestature of Android because that was in there”
“It's only a problem if it impacts the consumer”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Intelligence — With Scarlett Fu and Paul Sweeney. — How do you think the Fed is looking at tariffs, the uncertainty of tariffs? — Let's take a look at the sectors and how they perform.
A lot of investors getting whipsawed every day by news events — Breaking market headlines — And corporate news from across the globe. — Could we see a market disruption, a market event? Are people just too exuberant out there? — You see some so-called lowquality stocks driving this short-term rally? Bloomberg Intelligence
With Scarlet Fu and Paul Sweeney — On Bloomberg Radio, YouTube, and Bloomberg Originals. — On today's Bloomberg Intelligence Show, we dig inside the big business stories impacting Wall Street and the global markets. — Each and every week, we provide in-depth research and data on some of the 2,000 companies and 130 industries our analysts cover worldwide. Today, we'll take a look at why US judge ruled against the government's proposals to break up Google.
Plus, we'll look at why more AI researchers are leaving the tech giant Apple. — But first, we begin with news from the food and beverage company Craft Hind. — Because this week, Craft Hind announced its plans to split into two separate publicly traded companies. One company will sell condiments and box meals, while the other will include its slower growing grocery products like Lunchables.
For more, Scarlet and I were joined by Jen Bartacius, Bloomberg Intelligence senior retail analyst. We first asked Jen what this news means for Craft Hind 10 years after its initial merger. — It was just about a decade ago that they put the companies together um with the plans that it would become kind of a a package food powerhouse.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- kraft heinz split
- macys earnings
- pepsico elliott stake
- google antitrust chrome sale
- clean energy transition
Companies and tickers mentioned
- M
- PEP
- GOOGL
- GOOG
- AAPL
- Kraft Heinz
- Macy's
- PepsiCo
- Apple
- Elliott Investment Management
Watch the episode
Watch “BI Weekend: Kraft Heinz Split, Macy’s Earnings | Bloomberg Intelligence” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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