Kraft Heinz set aside $700 million this year for marketing and research and development as it works to reverse years of market-share losses, the company’s North America president told Reuters on October 6. Inflation is squeezing household budgets, and consumers are trading down to cheaper private-label alternatives.
CEO Steve Cahillane took over in January. Under his leadership, the US packaged-food company dropped plans to split the business in two and is directing more spending toward its brands and products, including a high-protein version of PowerMac & Cheese launched this year.
Spending on brands and research
Marketing and research and development spending behind brands such as PowerMac has risen 35% this year. Nico Amaya said Kraft Heinz would maintain that level. Cahillane expects the company’s innovation pipeline to accelerate in 2027.
For years, Amaya said, Kraft Heinz hadn’t innovated at pace. “We have some great brands that we haven't invested in in the past,” he told Reuters. The company now offers a wider range of products across its portfolio, with less sugar and salt and more protein and fiber.
Kraft Heinz has reformulated over 1,000 recipes, adding protein and fiber while reducing added sugar and fat. “Better-for-you in many aspects is here to stay,” Amaya said. “And protein will become just part of what everyone does.”
New products and changing demand
On Tuesday, Kraft Heinz introduced cheesy ramen in the United States, aiming to meet demand for different flavors and convenience. 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.
Kraft Heinz launched the cheesy ramen product in Canada already. It’s also bringing out smaller-portioned PowerMac cups, Amaya said, and expanding products with more protein and fiber.
Rapid adoption of GLP-1 weight-loss drugs is pushing packaged-food makers to reformulate products for consumers seeking healthier food. Kraft Heinz has made protein and fiber central to its response, alongside reductions in sugar, salt, added sugar and fat across products and recipes.
Competition and household pressure
Persistent inflation is weighing on household budgets, prompting consumers to trade down to cheaper private-label alternatives. Kraft Heinz is trying to recover market share in that environment. Its share price has fallen around 10% this year, though it has outperformed US packaged-food peers Conagra Brands, General Mills and PepsiCo.
The company is exploring new categories to increase innovation. Amaya described its move into ramen as an effort to play in different areas of the food market, while increased marketing and research spending supports established brands such as PowerMac.
Kraft Heinz is combining product reformulation, new launches and sustained spending. The company says its innovation pipeline will accelerate in 2027. Its immediate push includes cheesy ramen in the United States, smaller PowerMac cups, and products with more protein and fiber.