Kraft Heinz has announced that it is seeking strategic options as demand for its expensive snacks and ready meals weakens amid economic uncertainty.

The group also said that Timothy Kenesey and Alicia Knapp, executives at Berkshire Hathaway subsidiaries, will be leaving its board of directors. This decision follows Warren Buffett's holding company's announcement that it would no longer hold seats on the board. Kraft Heinz's CEO Carlos Abrams-Rivera said in a statement that the company haS been exploring M&A opportunities for several months now.

Consumers are increasingly turning to healthier processed products, a trend that has been accentuated by the rise of weight-loss drugs. Tariffs are also complicating the situation for Kraft Heinz, which lowered its annual organic sales and profit forecasts last month.

The group's deli meat division, Oscar Mayer, which specializes in hot dogs and cold cuts, is reportedly attracting interest from several buyers. According to a Reuters report last October, a sale of this business could be worth up to $3bn.

The company, which has a market capitalization of around $33bn, declined to comment further on the nature of the proposed transactions.

By withdrawing from the board of directors, Berkshire Hathaway retains its 27.5% stake in Kraft Heinz but relinquishes any influence over the company's strategy.

This withdrawal could pave the way for a sale of the stake by Warren Buffett, who has headed Berkshire since 1965, or Greg Abel, his designated successor as from January 1, 2026. It could also allow them to consider a bid for certain brands that Kraft Heinz may be looking to divest.

Investment in Kraft Heinz has proven complicated for Berkshire. Buffett acknowledged in 2019 that the group had paid too high a price when Kraft Foods and H.J. Heinz merged in 2015. This statement came four days after the food giant announced a $15.4bn write-down on its brands and assets, resulting in a $3bn loss for Berkshire.

Greg Abel already left Kraft Heinz's board of directors last year.