Kraft Heinz is increasing investment in product innovation, consumer experience and brand performance as part of a US$600 million programme aimed at restoring growth, with packaging identified by CEO Steve Cahillane as an area where improved functionality and shelf presentation can strengthen product relevance.
The food group announced the US$600 million incremental investment in February as part of its 2026 strategy, covering marketing, sales, R&D, product superiority and select pricing. The company also paused work on its previously proposed separation as it redirected resources towards growth.
Packaging has emerged as one practical element of that strategy. Cahillane has pointed to refrigerated cold cuts as an example where pack performance can influence the consumer’s perception of the product, highlighting resealability, shelf presentation and maintaining product quality after opening as areas requiring improvement.
The focus is particularly relevant for packaging suppliers because it moves packaging beyond graphics and brand recognition towards its role in product protection, convenience, shelf differentiation and the consumer experience after purchase.
The investment comes as Kraft Heinz works to rebuild volumes and market share. In the first quarter of 2026, net sales increased 0.8%, while organic net sales declined 0.4%. Adjusted operating income fell 11.8% to US$1.1 billion, with the company citing, among other factors, its increased investment programme.
“Our goal is to ultimately deliver profitable growth through volume and market share recovery,” Cahillane said when announcing the first-quarter results, adding that Kraft Heinz was focused on turning around its US business while accelerating growth internationally.
Packaging increasingly linked to product performance
For Packaging MEA readers, the development is significant because Kraft Heinz operates across numerous packaging formats, including rigid plastic bottles and closures, flexible packs, sachets, labels, cartons and foodservice packaging.
The company has also been developing packaging beyond its immediate US portfolio. Recent initiatives include recyclable ketchup bottle closures and work using digital identification technologies to understand what happens to plastic packaging after consumption.
In April 2026, Kraft Heinz joined Polytag’s Ecotrace programme in the UK, applying invisible UV tags to selected Heinz Beanz and Tomato Ketchup packaging to generate data on packages reaching recycling facilities. John Ryan, Director of Packaging for Kraft Heinz’s international markets, said tracking the journey of packaging after consumption represented a next step following work to make the company’s squeezy ketchup bottles recyclable.
The company is simultaneously pursuing growth outside North America. From July 2026, Kraft Heinz reorganised its international operations, combining Asia Emerging Markets and West and East Emerging Markets into a single Emerging Markets region, headed by Regional President Marcel Regis. The region encompasses the Middle East, Africa, Latin America and Asia emerging markets.