Kraft Heinz has warned that its sales recovery will take longer to materialise, with growth not expected to return until the second half of 2027 despite a $700m investment drive to revive its struggling brands.

The Heinz Beanz and Philadelphia owner expects organic sales to remain broadly flat next year, following a difficult 2026 in which revenue is forecast to fall between 0.5 per cent and 1.25 per cent.

Its adjusted operating profit is also expected to decline by a low single-digit percentage in 2027, before returning to growth in the second half.

The outlook, unveiled at its investor day on Thursday, sheds light on the scale of the challenge facing chief executive Steve Cahillane, who has made reviving sales a priority since taking the helm in January.

Kraft Heinz has struggled to win back shoppers following years of price increases, which have dented demand for its packaged food brands and contributed to declining volumes.

Its third-quarter results offered little relief, with net sales falling two per cent and organic revenue slipping 1.1 per cent, while adjusted operating income tumbled 15.2 per cent.

Cahillane has responded by stepping up investment in marketing, product development and innovation, including products aimed at changing consumer preferences around health and protein.

However, further price increases could be on the cards next year as rising freight, fuel and raw material costs continue to squeeze margins.

The turnaround has also prompted a rethink of Kraft Heinz’s wider business.

Earlier this year, Cahillane shelved plans to split the group into two publicly traded companies, choosing instead to focus resources on restoring growth across its existing portfolio.

Last week, Kraft Heinz agreed to sell its North American coffee business, which includes Maxwell House and Gevalia, to private equity firm One Rock Capital Partners in a deal valued at $650m.

The sale, expected to complete in mid-2027, will allow Kraft Heinz to direct more investment towards its core food brands.

Despite the subdued near-term outlook, Cahillane insisted the business was making progress, pointing to improving sales volumes and narrowing market share losses.

Kraft Heinz is targeting more consistent revenue growth and expanding margins from 2028, with ambitions to accelerate its recovery further in 2029.

For now, however, the group faces the difficult task of rebuilding demand for its household-name brands while managing cost pressures and increasingly price-conscious shoppers.

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