Food and consumer packaging suppliers are companies that investors should avoid buying. Inflation is raising the input costs, squeezing profit margins for them. Kraft Heinz (KHC) is especially under selling pressure, but for a different reason.
Last Wednesday, Berkshire Hathaway (BRK-B) might sell its 27.5% stake in KHC stock. The holding firm’s regulatory filing indicated that the sale would end its long-term holdings in the struggling firm. The filing indicated that it “may offer to sell, from time to time, 325,442,152 shares.”
Berkshire’s Buffett, who retired as CEO, along with 3G Capital, a Brazilian investment firm, instigated the merger of Kraft and Heinz. The merger did not work out. Berkshire wrote down $3.76 billion to recognize losses in holding KHC stock last summer.
In September 2025, KHC announced it would undo that merger. It now wants to separate the firm in a tax-free spinoff into two companies. After wasting time, resources, and losing focus, the new objective might end up as no more than an accounting trick.
KHC traded as low as $21.99 before closing at $23.20 on January 23, 2026.
In this sector, readers might consider General Mills (GIS), Tyson Foods (TSN), and Hershey (HSY). Kerry Group (KRYAY) is worth considering, too. The stock offers strong growth and profitability. Analysts raised their expectations for the firm’s prospects in the last three months.
