Kraft Heinz is reworking legacy products with higher protein, added electrolytes and lower sugar to win back shoppers and stem market share losses.
New York-based Kraft Heinz is revising classic brands that have gradually lost popularity with consumers, and is preparing updates with a focus on more nutritious ingredients and lower sugar content. In the coming months updated versions of Kraft Mac & Cheese with enhanced nutrition will appear, Capri Sun Hydrate will reduce sugar and expand its presence in the sports drinks category, and Kool-Aid will be supplemented with electrolytes for better competitiveness.
These updates to aging products signal a new course for the company after scrapping plans for separation in February. Kraft Heinz is also investing $600 million to accelerate sales of leading brands that are losing share to trendier competitors and cheaper private labels.
“Refocus the company’s full attention on the direct-to-consumer execution for the brands and products we have,” said Karolina Bulyas, president of Kraft Heinz for Hydration, Desserts and Foods.
Outlook and leadership after the split
While the overhaul of the product lines has been underway over the past year, reimagined foods and beverages “fit very well with the direction we want to continue innovating and growing” in the company’s post-split future, she told CNN.
Leading the way is CEO Steve Cahillane, who took the helm of Kraft Heinz in early 2026 after leading Kellogg Company. In February he said that many of Kraft Heinz’s challenges “can be fixed and are under our control,” and aims to return the company to profitable growth.
“Many of the challenges can be fixed and are under our control”
– Steve Cahillane
While optimism about the company’s growth remains, the decision not to split, according to TD Cowen analyst Rob Moskov, suggests that “the business is in worse shape than initially expected.”
“The business is in worse shape than initially expected”
– Rob Moskov
“It was hard to understand why some brands went in different directions, and some categories didn’t seem like the place they were placed,” he told CNN, adding that the company should focus more on affordability than on innovation.
Kraft Heinz shares have fallen about 10% over the past month.
PowerMac and competition with Goodles
Primarily, Kraft Heinz needs to revive the Kraft Mac & Cheese brand. This product holds the lead in the boxed category, but sales are slipping and market share has declined in recent years. Moskov noted that previously the company did not capitalize on the growth of the adult segment seeking more protein and “healthier” options.
The main competitor has become Goodles, a brand backed by Gal Gadot, which is capturing Kraft’s share due to more protein and fiber per serving. Goodles has also launched trendier flavors and expanded into single-serve cups.
“They delivered significantly higher consumer value due to more protein-rich and healthier options”
– Rob Moskov
To counter the competitor, Kraft is releasing PowerMac – 17 g protein and 6 g fiber per serving, roughly rivalling Goodles in nutrient content, but priced at $2.99 and in a larger box.
Jen Zeeshut from Goodles told CNN that the higher price is explained by the use of “premium” ingredients, but noted that major retailers often sell the boxes for less than $3.
Development of PowerMac took about a year; protein and fiber come from a pea-wheat-based noodle base, and the cheese spheres remained unchanged. The company aims to attract new customers or win back former ones.
Bulyas does not consider Kraft late to the “healthier for you” space, as demand for protein and fiber is rising, and Kraft aims to be not just first, but the best.
“I care less about being first than about being the best”
– Karolina Bulyas
Moskov doubts quick success for PowerMac, arguing that many Kraft Heinz brands face structural issues. “Kraft is a mix of brands; some could benefit from better product quality innovation, but others – is it worth investing more in them?”
On the other hand, Bulyas is more optimistic: Kraft Mac & Cheese and Velveeta sales show encouraging signals, and new initiatives this year are expected to support growth.
Capri Sun and Kool-Aid under a new light
Capri Sun Hydrate has 50% less sugar than similar sports drinks and adds vitamins and electrolytes. The beverage aims to replicate the success of the closed-bottle line and expand its presence in 16,000 new points of sale, primarily in convenience stores.
Kool-Aid is also undergoing updates with added electrolytes and a price reduction versus market leaders, narrowing the gap between brands.
“We have problems in the business that can be solved. We know where our leaks are and where there is momentum we can accelerate”
“We have problems in the business that can be solved. We know where our leaks are and where there is momentum we can accelerate”
– Karolina Bulyas
In addition, Kraft Heinz plans to further integrate brands and focus on healthier and more affordable offerings for consumers in response to changes in demand after the split.
