Kraft Heinz has earmarked $700 million this year for marketing and research and development as it tries to reverse years of market-share losses. On October 6, the company’s North America president told Reuters the packaged-food giant is backing demand for protein and fiber while trying to catch up on innovation.
The Boardroom Sets the Menu
Under CEO Steve Cahillane, who took over in January, Kraft Heinz abandoned plans to split the business in two and shifted its focus to investment and new products. This year, the company launched high-protein PowerMac & Cheese. It says it’s offering more products across its portfolio with less sugar and salt and more protein and fiber. Those choices reflect its effort to compete for shoppers and regain market share; Reuters quotes company executives, not consumers, describing the strategy.
On Tuesday, Kraft Heinz introduced cheesy ramen in the United States, aiming to capture demand for different flavors and convenience. Nico Amaya said the company was “leaning more into really playing in different areas, disrupting some of the categories.” He pointed to a $2.7 billion ramen market dominated by small players. The language is familiar: a corporate giant measures a food category as a market to enter, and smaller competitors as the existing field.
“Quite frankly, we haven't innovated at pace,” Amaya said. “We have some great brands that we haven't invested in in the past.” The admission puts the current push in context. Kraft Heinz says it’s spending now to address an innovation gap it acknowledges, while its executives decide which brands and categories receive corporate resources.
Household Budgets, Corporate Bets
Persistent inflation has pressured household budgets, prompting consumers to trade down to cheaper private-label alternatives. That pressure sits alongside Kraft Heinz’s effort to win consumers with new products and marketing. The report doesn’t give figures for household spending or explain what consumers pay for the new products. Instead, it describes a company making a substantial investment while shoppers turn to cheaper options.
This year, marketing and R&D spending behind brands such as PowerMac is up 35%. Amaya said Kraft Heinz would sustain that spending level. Cahillane expects the innovation pipeline to accelerate in 2027. The company’s plans depend not just on what foods consumers want, but on what its executives choose to fund and how the company competes for sales.
Kraft Heinz has also reformulated more than 1,000 recipes to add protein and fiber while offering less added sugar and fat. Amaya said it has already launched cheesy ramen in Canada and is bringing out smaller portioned PowerMac cups. The company is responding to demand for healthier food as the rapid adoption of GLP-1 weight-loss drugs pushes packaged-food makers to reformulate products.
The Competition Keeps Score
Kraft Heinz’s share price has slid around 10% this year, yet the company has outperformed packaged-food peers Conagra Brands, General Mills and PepsiCo. Its executives are backing marketing, R&D and product changes as they pursue market share in a business where inflation is shifting shoppers toward cheaper alternatives.
“Better-for-you in many aspects is here to stay,” Amaya told Reuters. “And protein will become just part of what everyone does.” That prediction is also a corporate pitch: Kraft Heinz is staking money on a trend and positioning its brands to compete as the packaged-food market changes. For now, the company’s stated answer to lost ground is more investment, more reformulation and a faster pipeline of products.