Kraft Heinz is currently exploring the sale of its Oscar Mayer meat business, The Wall Street Journal reported on Monday.
The sale could fetch anything between $3 billion and $5 billion, according to people familiar with the matter.
Oscar Mayer – known for hot dogs, bacon, ham, and bologna products – has had to deal with declining consumer demand.
This fall is due to customer habits shifting to healthier options.
The company also wrote down the value of its Oscar Mayer and Kraft brands in 2019.
The news comes after Kraft Heinz missed Wall Street expectations in the first quarter, as customers pushed back against price hikes.
The packaged food maker has tapped Bank of America and Centerview Partners to gauge interest in the business, the report noted.
Potential buyers could include private-equity firms or other food industry players, according to The Wall Street Journal.
The report also notes the possibility that no transaction may materialise.
Kraft Heinz declined to comment on the report.
Before its merger with Heinz in 2015, Kraft Foods had planned to spin Oscar Mayer into a separate segment in 2007.
Shares for Kraft Heinz were up marginally, at $36.45, in afternoon trade, following publication of the report.
Read More: Kraft Heinz Misses First-Quarter Sales Estimates On Slow Demand
