Kraft Heinz might sell its Maxwell House coffee business as it considers options with the aid of investment bank Credit Suisse, people familiar with the matter have told CNBC.
Kraft Heinz's release last week of fourth-quarter earnings and revenue was lower than estimates, and its dividend decreased by 36 percent to 40 cents per share since last quarter's dividend of 62.5 cents per share. Executives told investors around the time of the release that more divestitures were in the works to help alleviate debt. Maxwell House has suffered due to Americans tending to buy coffee at cafes instead of making drip coffee at home. Selling Maxwell House could bring in at least $3 billion, subject to buyer interest, the people said.
"Kraft Heinz will not comment on rumors or speculation but we will look at divestitures where there is no clear path to competitive advantage," a spokesman for Kraft Heinz told CNBC. "This in turn will improve our portfolio's growth and margin trajectory."
