Kraft Heinz has earmarked $700 million this year for marketing and research and development as it tries to reverse years of market-share losses, the company’s North America president told Reuters on October 6. The US packaged-food company is expanding products featuring more protein and fiber, while persistent inflation is pushing consumers toward cheaper private-label alternatives.
Investment and Innovation
CEO Steve Cahillane took over in January, and Kraft Heinz abandoned plans to split the business in two. Instead, the company is directing this year’s $700 million toward marketing and R&D, aiming to regain ground after years of losing market share.
Spending behind brands such as PowerMac is up 35% this year. Nico Amaya said Kraft Heinz would sustain that spending level. Cahillane expects the company’s innovation pipeline to accelerate in 2027.
Kraft Heinz launched high-protein PowerMac & Cheese this year. Across its portfolio, it’s offering a wider range of products with less sugar and salt and more protein and fiber. Amaya said the company hadn’t kept up its pace of product development. “Quite frankly, we haven't innovated at pace,” he said. “We have some great brands that we haven't invested in in the past.”
Kraft Heinz is also entering new product categories. On Tuesday, it introduced cheesy ramen in the United States, targeting demand for different flavors and convenience. Amaya pointed to the $2.7 billion ramen market, dominated by small players, and said the company was “leaning more into really playing in different areas, disrupting some of the categories.”
Changing Consumer Demand
Persistent inflation has pressured household budgets, prompting consumers to trade down to cheaper private-label products. The company is also responding to the rapid adoption of GLP-1 weight-loss drugs, which is pushing packaged-food makers to reformulate products to meet demand for healthier food.
Kraft Heinz has reformulated more than 1,000 recipes to add protein and fiber while offering less added sugar and fat. Amaya said the company was bringing out smaller portioned PowerMac cups. Its cheesy ramen product has already launched in Canada.
“Better-for-you in many aspects is here to stay,” Amaya told Reuters. “And protein will become just part of what everyone does.” The company’s changes include adding protein and fiber and reducing sugar, salt, and fat in products across its portfolio.
Market Performance
Kraft Heinz shares have fallen around 10% this year. Despite that slide, the company has outperformed US packaged-food peers Conagra Brands, General Mills and PepsiCo.
The company’s current strategy combines increased marketing and R&D investment with new products and recipe changes. Its stated plans include sustaining this year’s higher spending level and accelerating the innovation pipeline in 2027. These investments come as household budgets face pressure from persistent inflation and food companies respond to changing consumer demand.