Analysis-Kraft Heinz seeks to revive old brands by undoing 2015 mega-merger

NEW YORK (Reuters) -Kraft Heinz's potential spinoff of slower-growing brands such as Velveeta cheese is a risky last-ditch effort to boost returns by reversing its unsuccessful decade-old merger. The Chicago- and Pittsburgh-based foodmaker is studying a potential spinoff of a large chunk of its grocery business, including many Kraft products, into a new entity, a source said on July 11, confirming a report in the Wall Street Journal. Shares in the food maker have lost about two-thirds of their value since Kraft and H.J. Heinz merged in 2015 in a deal backed by Warren Buffet's Berkshire Hathaway that was aimed at cutting costs and growing the brands internationally.