What grocery stores can teach Americans about capitalism
Capitalism’s success is on display in modern grocery stores, according to WSJ Free Expression senior newsletter editor Emma Camp. Camp tells Stuart Varney that abundance and variety have halved the share of disposable income Americans spend on food since 1950. She also analyzes a new report showing that the college enrollment crisis is now impacting larger universities due to rising tuition costs.
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Cheesy ramen, protein-packed Jell-O and round bacon slices specially cut for sandwiches are among the new twists coming to grocery stores as Kraft Heinz reportedly tries to breathe new life into old brands.
The new products, expected to hit shelves in the spring, are part of a broader push by the packaged-food giant to invest in innovation. They include Jell-O pudding with 10 grams of protein, Crystal Light with added fiber and protein, and Oscar Mayer Sandwich Bacon.
“It’s a big turnaround,” Kraft Heinz CEO Steve Cahillane told the Wall Street Journal. “These brands have been underinvested in for over 10 years.”
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Kraft Mac & Cheese Cheesy Ramen is set to arrive nationwide in early 2027, according to a press release. The instant noodle cups will come in Spicy, Chicken and Pork varieties and contain no artificial flavors, preservatives or dyes. Kraft said it is the brand’s first move into a new category in nearly 20 years and Cahillane said it sold out within a week of its Canadian launch.
Kraft Mac & Cheese is taking its signature cheesy flavor beyond the pasta aisle with a new ramen product. (Kena Betancur/Bloomberg via Getty Images)
The launch also follows the brand’s introduction of PowerMac, mac and cheese with added protein and fiber. Cahillane told the Journal that PowerMac helped return the brand to sales growth after several years.
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Kraft Heinz has invested an additional $700 million in its business, with funding for marketing, lower prices, staffing and product development. It also hired 400 employees, the outlet reported.
Oscar Mayer Sandwich Bacon is among the new products Kraft Heinz plans to roll out next spring. (Justin Sullivan/Getty Images)
Its new offerings reflect consumers’ growing interest in protein and wellness, but the company is also staying true to its roots, focusing on taste and convenience.
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About half of its 2027 product pipeline will focus on health and wellness, Cahillane told the Journal, including products with less sugar or more protein. But traditional Heinz ketchup will still be made with high-fructose corn syrup, he said, in part because cane sugar is more expensive.
Traditional Heinz ketchup made with high-fructose corn syrup will remain on shelves. (iStock)
“We’re not trying to claim that 100% of our portfolio is grown in your back garden,” Cahillane said. “We are claiming that we can do health and wellness. We can play in that space, and we can do it extremely well.”
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Oscar Mayer meat and Kraft cheese continue to struggle, according to Cahillane, as is Philadelphia cream cheese with consumers switching to cottage cheese. Kraft Heinz is trying to develop cream cheese products that rely less on carbohydrates like bagels.
Kraft Heinz is investing $700 million in marketing, lower prices and product development as it works to revive its brands. (Will Newton/Getty Images)
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Cahillane said he still expects sales to be flat next year, with sales and profits returning to growth in 2028. Kraft Heinz at one point planned to split into two companies, separating its global condiments business from its North American grocery unit, but Cahillane later paused the plan, telling the Journal that a split is no longer a focus.
But some analysts remain skeptical that the company’s struggling brands can be revived.
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Kraft Heinz plans to bring protein-packed Jell-O pudding to stores next spring. (Al Drago/Getty Images)
“There are too many holes in the boat, too many plates to spin,” TD Cowen analyst Rob Moskow told the Journal. “I’m not sure how they can get it all done.”
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Part of the challenge is being in so many categories at the same time, Cahillane said: “We have to whack one mole at a time.”
