Kraft Heinz is giving some of America’s most familiar grocery products an unexpected makeover in a bid to revive long-slumping sales and regain support from Wall Street.
The packaged food giant, known for brands such as Heinz, Kraft, Philadelphia Cream Cheese, Lunchables and Oscar Mayer, is reinventing its decades-old brand to appeal to changing consumer tastes, particularly the growing demand for protein and convenience foods, CEO Steve Cahillane told CNBC’s Jim Cramer on Thursday.
“The mistake we made at Kraft Heinz over the last few years, before I arrived, was the idea that there is such a thing as a ‘forever brand’ and that brands just need to live up to their past history,” Mr. Kailane said after Kraft Heinz held an investor presentation on Thursday. “That’s not true. But by the same token, brands that have been around for a long time are not necessarily destined to be consigned to the dustbin of history.”
“You have to innovate. You have to bring new news. You have to bring excitement to the brand,” he added.
That philosophy is central to Cahillane’s turnaround strategy. Since taking the helm in early 2026, he has pumped an additional $700 million into the business and hired 400 employees. He also suspended plans to split Kraft Heinz into two companies. At Thursday’s investor day, Kraft Heinz expected a return to sales and bottom-line growth in the second half of 2027. The company’s revenue has been declining on an annual basis in recent years, and analysts expect it to decline by 1% in 2026, according to FactSet.
“There were a lot of things that could have been fixed,” Kylene said. “If we had spent all of this year separating the businesses…we would have ended up with two sub-optimal businesses.”
He argued that the company’s resources could be better used to revitalize the brand.
One of the clearest examples of that strategy is Kraft Mac & Cheese. The nearly century-old brand has returned to growth with the introduction of products like PowerMac, which packs 17 grams of protein and 6 grams of fiber, and Restaurant Edition, which packs restaurant-inspired flavors into a classic boxed format.
Perhaps an unexpected innovation is Kraft Mac & Cheese Cheese Ramen, which debuted in Canada in July in response to overwhelming demand. “We sold out three months’ worth of inventory in one week,” Kailane said, adding that the company plans to have the cheese-stuffed noodles in U.S. stores next year.
Jell-O is also joining the protein craze, fueled in part by fitness influencers and the rise of GLP-1 weight loss drugs. Kraft Heinz is introducing a pudding with 10 grams of protein to boost the nutritional value of this nostalgic dessert. Kailane said the company’s research and development team worked to overcome the taste and texture challenges that often occur when adding protein to familiar foods.
“Our research and development team has cracked the code,” he said. “Chocolate is my favorite. I think chocolate Jell-O pudding with protein will be a big hit.”
Philadelphia cream cheese is getting a protein-packed makeover, following the introduction of new flavors of regular spread in September. Cahillane said Kraft Heinz plans to introduce new products under the brand next year. “We have a huge opportunity to drive protein and take share away from cottage cheese, and that will come through the Philadelphia name,” he said.
Kraft Heinz stock has struggled for years, but investors are once again expressing optimism. The company’s stock is up 7% this quarter, outperforming the broader market, despite its nearly flat yearly results and lagging the S&P 500’s 11% rise.
