Divestiture of major coffee brands
Kraft Heinz is selling its North American coffee business to One Rock Capital Partners for $650 million. The deal includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, and Sanka brands. Kraft Heinz will keep a 30% non-controlling ownership stake in the business. To reduce debt, the company expects approximately $500 million in net cash proceeds after taxes. This deal involves manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia, and about 250 full-time employees across manufacturing, sales, marketing, finance, human resources and research and development are expected to transition with the business. The company did not disclose the coffee division’s revenue or profitability in the sale announcement.
| Detail | Value |
|---|---|
| Total Deal Value | $650 million |
| Expected Net Proceeds | $500 million |
| Kraft Heinz Stake | 30% |
| Included Brands | Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, Sanka |
| Facilities | Jacksonville, FL; Vancouver, BC |
One Rock takes the brands
One Rock Capital Partners specializes in acquiring and restructuring businesses, and the firm previously acquired Nestle’s North American bottled water business in 2021. Tony W. Lee, Managing Partner at One Rock, said, "We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners." I find the decision to sell quite obvious since Kraft Heinz’s 2025 financial results showed higher coffee costs driving consumer price increases alongside declining coffee sales volumes. The transaction is expected to close in mid-2027, subject to regulatory approval and other conditions. This sale comes after a restructuring effort where Kraft Heinz planned to split into two publicly traded companies in September 2025 before pausing those plans in February.
This sale ends decades of coffee ownership for Kraft Heinz and its predecessors. Maxwell House was part of General Foods, which combined with Kraft in 1989 under parent Philip Morris. This coffee business remained with Kraft Foods Group following the 2012 separation from Mondelez International, and it stayed with the entity after the 2015 merger with H.J. Heinz. Kraft Heinz also expanded into specialty coffee in 2018 through the acquisition of Ethical Bean Coffee, a Fairtrade and organic certified roasting company established in 2003. I find the coffee division’s recent performance disappointing because the company cited higher coffee costs as a driver of consumer price increases in its 2025 financial results, even as coffee sales volumes declined.
