Key facts
- Kraft Heinz plans to accelerate product innovation next year.
- CEO Steve Cahillane has allocated $600 million for marketing and R&D this year.
- The company is expanding into higher-protein and lower-sugar product categories.
- Kraft Heinz's U.S. volumes fell 4.1% and dollar sales by 1.9% in the four weeks to May 16.
- The company aims to absorb approximately 80% of inflation costs this year.
Kraft Heinz aims to accelerate its product innovation efforts next year, according to CEO Steve Cahillane. The company is increasing investment in marketing and research and development, allocating $600 million this year to revitalize its core U.S. business, which accounts for nearly 70% of its sales. Cahillane stated that changes implemented in R&D, process improvement, and resource allocation will result in a stronger innovation pipeline for 2027 compared to 2026. This strategic push includes expanding into healthier product categories such as protein-infused Mac & Cheese and electrolyte-enhanced Capri Sun drinks, as well as sugar-free options. The renewed focus follows a decade of market share losses to competitors and challenger brands, attributed to underinvestment and rising competition. Despite a 3.8% share price decline this year, Kraft Heinz has outperformed peers like Conagra Brands and Campbell's, indicating investor support for the strategy. The company's U.S. volumes decreased by 4.1% and dollar sales by 1.9% in the four weeks leading up to May 16, according to Nielsen data cited by BNP Paribas analyst Max Gumport. Kraft Heinz is also committed to absorbing approximately 80% of inflation costs this year, relying on new products to drive growth. The proportion of products holding or gaining market share increased to 58% in March from 21% at the end of 2025, signaling early positive returns that could lead to further investment.