Kraft Heinz is increasing its promotional spending in the United States by about $300 million as it faces softer consumer demand and persistent inflation. The move forms part of the company’s broader plan to prepare for its upcoming split into two separate entities in 2026.
The food manufacturer’s third-quarter results showed only limited recovery, with its North American grocery division posting a small decline. Weaker US volumes reflected reduced household spending on food staples. Commodity costs for items like meat and coffee continued to rise, adding pressure to margins.
To counteract the slowdown, Kraft Heinz will allocate an additional $80 million to media campaigns, expand its research and development programmes, and strengthen commercial teams across key US regions.
While the company’s domestic performance remains muted, international markets performed more strongly, with emerging regions growing by more than 9 % so far this year and the Heinz brand recording double-digit gains.
Analysts are cautious about the effectiveness of the promotional drive, noting that higher marketing outlays have yet to translate into significant volume growth. For retail and supply partners, the initiative signals a likely increase in trade promotions and price-based incentives heading into major US holiday periods.
The company remains committed to maintaining financial discipline as it transitions toward the planned separation, focusing on operational resilience and brand investment to sustain long-term competitiveness.