Kraft Heinz Adds Retail and Grocery Finance Veterans to Its Board

Kraft Heinz is pairing a board refresh with a portfolio overhaul as CEO Steve Cahillane pushes to restore profitable growth. The company has appointed Nordstrom CFO Kelly Dilts and former Kroger finance chief J. Michael Schlotman as directors, effective Wednesday, while preparing to sell its North American coffee business and use much of the proceeds to reduce debt.

Retail and grocery experience joins the board

Dilts has led Nordstrom’s finance organization since September 2025. She joined the retailer after serving two years as CFO of Dollar General, and took the Nordstrom role after the company had gone private and delisted from the New York Stock Exchange.

Schlotman spent 34 years at Kroger, including 19 as its CFO, before retiring in December 2019. Since then, he has held board positions at Kellanova, the company created through Kellogg’s 2023 split, as well as Connetic Ventures and CVG Airport. Both new directors will be paid under Kraft Heinz’s standard compensation policy for non-employee board members.

The appointments add consumer, finance and operating backgrounds as Kraft Heinz executes a $700 million transformation plan. Cahillane said the pair have spent their careers close to consumers, customers and the forces shaping the industry. Their experience leading large businesses through change, he said, can help the company sharpen its focus, strengthen brands and improve profitability.

Coffee sale redirects capital

The board changes arrive alongside a planned divestiture of Kraft Heinz’s North American coffee operation, which includes Maxwell House, Ethical Bean and Sanka. The company has agreed to sell the business to an affiliate of private equity firm One Rock Capital at an enterprise value of $650 million.

Kraft Heinz expects the transaction to close in mid-2027, subject to regulatory approval. It plans to keep a 30% equity interest, while anticipating about $500 million in after-tax cash proceeds for debt reduction. The company describes the deal as both growth and margin accretive.

On the company’s third-quarter earnings presentation, Cahillane characterized the sale as a step toward simplifying and strengthening the portfolio. He said the move would let management and capital focus on areas with greater growth potential and value for consumers and shareholders. The proceeds also give the company a direct way to address its debt while it funds its broader turnaround.

A paused split and renewed growth spending

Kraft Heinz had been preparing to divide into two companies amid persistent challenges across the food sector. Cahillane, a Kellanova alumnus, became CEO in January. Soon after, the company put the separation plan on hold, with Cahillane arguing that many of its problems could be fixed internally.

The company has since committed $600 million to marketing, research and development, and sales, followed by another $100 million investment announced in August. Cahillane has also described ongoing discussions with retailers as constructive, pointing to pricing and product development as areas where the company can work with its customers.

“We want to be a tailwind for our retailers, not a headwind,” he said, describing efforts to make the grocery aisle more dynamic, introduce products and attract traffic. That focus puts execution at the center of the strategy: Kraft Heinz needs to make its brands more relevant to shoppers while improving returns from its portfolio.

Quarterly results underline the pressure

The company’s latest results show the scale of the task. For the quarter ended Sept. 26, net income fell nearly 13% year over year to $536 million, while net sales declined 2% to $6.1 billion.

My read is that the director appointments and coffee divestiture serve the same purpose: concentrate leadership attention and capital while the company tries to rebuild growth. The board’s consumer and operating experience will matter most as Kraft Heinz turns its marketing spending and retailer conversations into stronger sales performance.