In a strategic move, Kraft Heinz Co (NASDAQ:KHC) is reportedly considering selling its iconic brand Oscar Mayer, renowned for its hot dogs, cold cuts, and bacon.

Kraft Heinz has enlisted the expertise of Bank of America and Centerview Partners to assess interest in Oscar Mayer, with estimates suggesting a potential sale price ranging between $3 billion to $5 billion. However, the transaction is not guaranteed, according to a report from the Wall Street Journal.

Potential buyers for Oscar Mayer could range from private equity firms to players within the food industry, the report added.

The decision aligns with Kraft Heinz's broader strategy to adapt to evolving consumer demands under the leadership of CEO Carlos Abrams-Rivera.

Abrams-Rivera aims to revitalize Kraft Heinz's portfolio, emphasizing healthier alternatives amid growing concerns about processed foods and health issues.

The company, with a current market capitalization of over $44 billion, seeks to invigorate its stagnant stock performance. Kraft Heinz stock has lost more than 9% in the last 12 months.

Kraft Heinz faces challenges as it endeavors to enhance the nutritional profile of its products amid fluctuating demand and rising input costs.

Recent quarterly results disappointed investors, reflecting the need for strategic restructuring within the company.

Once an integral part of American culture, Oscar Mayer's potential divestment marks a pivotal moment in Kraft Heinz's evolution, signaling its responsiveness to changing market dynamics and consumer needs.

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Investors can gain exposure to the stock via Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV) and First Trust Consumer Staples AlphaDEX Fund (NYSE:FXG).

Price Action: KHC shares closed higher by 0.69% at $36.49 on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.