Kraft Heinz
Kraft Heinz is reportedly struggling to offload its coffee brand Maxwell House. Credit: Jo Lanta on Unsplash.

Kraft Heinz is reportedly struggling to sell coffee brand Maxwell House.

The New York Post reported that the company put the coffee brand up for sale for around $2.5bn in February this year.

At the time, investment bank Credit Suisse was appointed to review options for the Maxwell House business, which saw roughly $400m in earnings before interest, taxes, depreciation and amortisation.

The business’s high price tag is said to be impacting its sale, as suitors have been meeting with Kraft Heinz officials to discuss an acquisition but have not made any commitments.

“The business’s high price tag is said to be impacting its sale.”

A report released last week by independent investment bank and financial services company Piper Jaffray suggested that the price tag is expected to create an impact on the company’s earnings of around $0.10 per share.

CNBC reported that Kraft Heinz is evaluating options to sell its cottage cheese and sour cream arm in addition to Maxwell House.

Kraft Heinz also reportedly explored options to divest its Ore-Ida frozen potato business. CNBC claims that the sale of the Tater Tot manufacturer could be worth around $2bn, however, the final valuation may change.

Kraft Heinz plans to use proceeds from the sale to pay off its debts, as well as focus on restructuring its business.