Kraft Heinz said in prepared remarks for its second-quarter earnings that it will add approximately $100 million to its transformation plan, with the majority of the funds focused on marketing. The company said marketing spending in 2026 will be at least 6% of net sales, up 0.5 percentage points from its previous guidance. This move follows the packaged food giant 'beating expectations' in the first half of 2026, during which it had already begun deploying $600 million in incremental spending across product superiority, pricing, marketing, sales, and R&D.

"I see this investment having an effect across almost all areas of deployment. Condiments is probably the first area where we saw significant improvement," said Kraft Heinz CEO Steven Cahillane during the earnings call, responding to an analyst's question about the effectiveness of the increased investment. "Heinz has returned to the growth it should have — strong growth, strong consumption growth — and that's been excellent. So, in the U.S., we're seeing better performance overall."

Key Data at a Glance

  • $100 million:The incremental investment Kraft Heinz is adding to its transformation plan, with the majority focused on marketing.
  • 6%：The expected percentage of Kraft Heinz's net sales that marketing spending will account for in 2026.
  • 1.4%：The year-over-year decline in Kraft Heinz's net sales for the second quarter of 2026.

The food company, which owns brands like Philadelphia Cream Cheese, Jell-O, and Ore-Ida, is directing funds toward fewer but more impactful media partners as part of its transformation. This strategy has recently manifested in several major sponsorships, including a five-year agreement with the National Football League (NFL), work surrounding the celebration of America's 250th anniversary (America250), and a strategic marketing partnership with The Walt Disney Company covering Disney's media channels, cruise line, theme parks, and various events.

"We are not only increasing investment to support our brands, but we are investing more efficiently. We have reallocated funds to high-return brand media, improved efficiency by working with fewer but more effective media partners, and launched more consumer-driven creative content," Cahillane said in the earnings presentation. "Importantly, we are measuring the direct sales impact and seeing clear improvement."

Marketing campaigns for individual brands are also helping to strengthen brand equity and foster 'positive momentum' in the U.S. market. Examples include Heinz's 'It Has to be Heinz' and Philadelphia Cream Cheese's 'Really Philly Good' — the latter positioning the cream cheese as a kitchen essential. Kraft Heinz also stated that increases in staffing are similarly focused on marketing and sales roles.

Kraft Heinz paused its plan to split into two companies in February 2026, believing its issues were fixable. Second-quarter net sales fell 1.4% to $6.3 billion, while North America — Kraft Heinz's largest market — declined 2.7% in the quarter ending June 27. These results exceeded the company's internal expectations and were higher than analyst estimates. Kraft Heinz raised its full-year organic net sales outlook, now expecting a decline between 0.5% and 2%, compared to its previous forecast of a 1.5% to 3.5% decrease.