Kraft Heinz Breakup Primed to Split Its Ketchup From Hot Dogs

The Heinz ketchup and Oscar Mayer hot dogs featured at barbecues this summer are owned by the same company. Next summer, that might not be the case.

Kraft Heinz Co. is preparing to break itself up and spin off a large part of its business into a new entity, people familiar with the matter said Friday. The packaged foods company had said in May it was considering “potential strategic transactions,” but hasn’t said which brands it might separate.

Packages of Oscar Mayer classic wieners.

Photographer: Justin Sullivan/Getty Images

The company has divided its products into a three-tier hierarchy, and it’s likely to stick with those reporting strong growth. Company ...