Kraft Heinz $KHC is thinking about selling its iconic hot dog brand Oscar Mayer. The Wall Street Journal, citing anonymous sources familiar with the matter, reports that the packaged foods giant is exploring a sale of the meat maker that could be valued between $3 billion and $5 billion. Kraft Heinz is in talks with Bank of America $BAC and Centerview Partners, The Journal reports, and the deal still may not happen.
Discussions of a potential deal may be tied to the company’s aim to meet the changing needs of consumers who prefer healthier options. Kraft Heinz CEO Carlos Abrams-Rivera told investors during the company’s earnings call this month that it is working on expanding its assortment of products to include gluten-free options.
Like other food retailers, Kraft Heinz, which sells and manufactures staples such as Lunchables and Jell-O, is among those being impacted by inflation-weary consumers.
Earlier this month, the ketchup maker missed Wall Street’s earnings expectations for its first quarter. The company saw 1.2% sales decline, which it said was in part due to consumers avoiding its higher-priced branded items, like its lunch combos and cold cuts.
Kraft Heinz stock edged up slightly in Monday afternoon trading.
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