Major food companies like Kraft Heinz and PepsiCo are facing significant challenges as consumer preferences shift away from traditional packaged foods. This has led to a series of strategic decisions, including acquisitions and potential breakups, as companies seek to innovate and adapt to changing market dynamics. For instance, PepsiCo's recent acquisition of Poppi and Siete Foods highlights a trend towards investing in smaller, higher-growth brands that align with health and wellness trends.

The food sector is experiencing unprecedented consolidation, with companies like Kellogg splitting into two entities and being acquired by private players. Analysts suggest that stagnant core businesses are prompting these companies to either buy smaller brands or consider breaking up larger enterprises to enhance shareholder value. The pressure from investors for better performance is evident, as seen in Kraft Heinz's potential breakup discussions, which could lead to a more focused approach on its core brands.