Healthy kids foods and beverages can differentiate Kraft Heinz brands and propel growth
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The split only works if Kraft Heinz owns kids’ nutrition.
When Kraft Heinz announced it would split into two companies, the move was billed as a chance to unlock value and sharpen strategy. But the anticipated cost-cutting and portfolio shuffling has already failed to deliver growth for the company. Now, a new external catalyst has emerged: MAHA’s “Make Our Children Healthy Again” initiative. If Kraft Heinz seizes on this billion-dollar opportunity, reimagining Lunchables and Mac & Cheese as healthier, better-for-kids products, the breakup could finally become a springboard to long-term relevance instead of just another round of corporate restructuring.
But to be successful, the company needs to confront the same problems I argued in Forbes.com in 2020 that it needed to dramatically increase its investment in research and development, improve the health profile of its products, and lean into an obvious but overlooked growth engine: becoming the trusted healthy kids food company. This necessity is even more urgent today. Consumers have only become more health-conscious, MAHA regulators more active, and Gen Z consumers more skeptical of legacy packaged-food brands.
The company has done a commendable job of introducing smaller-portion packaging, including for cheese slices and some of its Lunchables products. But the numbers suggest that more innovation is mandated. Kraft Heinz has historically spent less than 1% of net sales on R&D (0.6% in 2024), significantly lower than more innovative packaged food companies like Nestle (1.9%), Danone (1.6%) and General Mills (1.3%). The result? Line extensions and brand tweaks instead of true breakthroughs. Meanwhile, healthier food items continue to outpace traditional categories in growth, particularly among millennial and Gen Z parents who want convenience without compromising nutrition. By clinging to their traditional processed comfort foods without significantly upgrading their nutrition credentials, Kraft Heinz has ceded ground to its competitors.
This is where the new breakup presents both a risk and an opportunity. The risk is obvious: dividing Kraft Heinz may distract leaders from tackling deep-seated problems. Each new company will be under pressure to cut costs to please Wall Street, reinforcing the very short-term thinking that got Kraft Heinz into trouble in the first place. The opportunity, however, is compelling: to finally commit to a bold repositioning that aligns with consumer expectations. No opportunity is bigger than healthier kids food and the company has abundant nutrition and R&D talent to execute this strategy.
Consider Kraft Heinz’s brand portfolio. Kraft Mac & Cheese, Lunchables, Capri Sun, Jell-O and Heinz ketchup are names etched into American childhoods. Few companies have such strong brand equity with families. Yet many of these products carry a nutritional stigma, whether it be too much sodium, sugar, or saturated fat. Parents may buy them for nostalgia or convenience, but many do so with guilt. What if Kraft Heinz alleviated that guilt?
With reformulated products that cut sodium and sugar, boosted protein and fiber, and incorporated clean-label ingredients, Kraft Heinz could turn those guilty pleasures into go-to staples for health-minded parents. Picture Lunchables reinvented as more balanced meal kits with whole grains, fruits, and veggies. Imagine Kraft Mac & Cheese with more protein to support child growth. Think of Jell-O transformed into a snack with probiotics to aid with gut health. These changes are not science fiction – they are already happening in the broader marketplace, but Kraft Heinz has come up short.
The timing couldn’t be better, especially as MAHA policymakers appear willing to impose tighter restrictions on processed foods in schools, government programs, and childcare settings. If Kraft Heinz positioned itself as the company that solved the “healthy kids food” dilemma, it could tap into a vast market, earn regulatory goodwill, and set themselves up for generations of new customers. More than that, it would give the company a distinctive mission beyond cutting costs that could energize its capable employees and attract top talent.
Doubling down on R&D, creating partnerships with nutrition scientists, and even acquiring promising startups are all moves Kraft Heinz should pursue urgently and aggressively. Equally important, leadership must resist the temptation to measure success solely in quarterly earnings. Long-term brand trust, especially with parents, takes time to build, but can deliver decades of loyalty.
The partitioning of Kraft Heinz will test whether the company has learned from past mistakes or is doomed to repeat them. If the two new Kraft Heinz entities keep pushing the same old products, no financial engineering will mask their decline. If, however, one or both companies seize the healthy kids mantle, they could not only restore relevance but also create an engine of sustainable growth.
I warned 5 years ago that Kraft Heinz couldn’t cut its way to growth. The split proves that point. MAHA now hands the company a billion-dollar chance to lead in kids’ nutrition and finally make its brands matter again.
Source: https://www.forbes.com/sites/hankcardello/2025/09/11/kraft-heinzs-billion-dollar-maha-opportunity/
