Kraft Heinz has set aside $700 million this year for marketing and research and development, betting that shoppers squeezed by persistent inflation will still pay for food with more protein and fiber. Nico Amaya, the company’s North America president, described the plan to Reuters on October 6.
It marks a sharp change of course. Since Steve Cahillane took over as CEO in January, the US packaged food company has dropped plans to split the business in two. Instead, it’s putting cash into brands it says it neglected for years, hoping to reverse a long run of market-share losses.
"Quite frankly, we haven't innovated at pace," Amaya said. "We have some great brands that we haven't invested in in the past."
What's on the shelf
Kraft Heinz launched its high-protein PowerMac & Cheese this year and is expanding its lineup with products that have less sugar and salt and more protein and fiber. Smaller PowerMac cups are coming. Amaya said the company has reformulated more than 1,000 recipes to add protein and fiber while cutting added sugar and fat.
On Tuesday, the company introduced cheesy ramen in the United States, following its launch in Canada. Amaya pointed to a $2.7 billion ramen market dominated by small players. "We're leaning more into really playing in different areas, disrupting some of the categories," he said.
Marketing and R&D spending behind brands such as PowerMac has risen 35% this year, and Amaya said Kraft Heinz would maintain that level. Cahillane expects the innovation pipeline to accelerate in 2027.
Pressure on household budgets
Ordinary shoppers are under pressure. Persistent inflation has strained household budgets, pushing consumers toward cheaper private-label alternatives. That leaves branded manufacturers in a bind: the healthier products Kraft Heinz is promoting must compete with lower-priced store brands for families watching every dollar.
GLP-1 weight-loss drugs bring another source of pressure. Packaged-food makers are reformulating products to meet demand for healthier food, and Amaya sees the shift as lasting. "Better-for-you in many aspects is here to stay," he told Reuters. "And protein will become just part of what everyone does."
Investors watch
Kraft Heinz shares have fallen around 10% this year. Still, the company has outperformed US packaged-food peers Conagra Brands, General Mills and PepsiCo, suggesting the whole sector is struggling with cautious consumers and changing diets.
Why This Matters:
What a food giant puts in its recipes shapes what reaches millions of family tables. Kraft Heinz says it’s cutting added sugar and fat and adding protein and fiber across more than 1,000 recipes, a change that could improve everyday nutrition. But inflation is pushing shoppers toward cheaper private-label goods, and the source gives no detail about how the reformulated products will be priced. If healthier options cost more, the benefit may reach only households with room in their budgets. That’s the test as the company's 2027 pipeline arrives: whether better-for-you food becomes accessible to everyone or remains a luxury for those who can afford it.