CHICAGO — The Kraft Heinz Co.’s North America business unit continues to struggle as its net sales fell from $4.8 billion during the first quarter of fiscal 2024 to $4.5 billion during the same period in fiscal 2025. The weakness in the company’s largest business unit combined with an uncertain macroeconomic environment prompted management to lower its outlook for the rest of the fiscal year.

“We have prioritized resources to drive improvement across four brands that are experiencing more significant top-line pressure — Lunchables, Capri Sun, Kraft Mac & Cheese, and Kraft Mayonnaise,” said Carlos Abrams Rivera, chief executive officer, in prepared remarks about the quarterly results that were published April 29.

Regarding Lunchables, Abrams Rivera said the company will be introducing additional innovation during the second quarter and in the fall the company’s innovation, quality and marketing plans will come together to improve the performance of the business.

“Our strategic focus on omnichannel execution across Lunchables is already paying dividends — with key customer partnerships yielding a meaningful increase in distribution,” he said. “And to support a winning fall season for our consumers, we are doubling down on our marketing commitment and investing twice the national media spend, ensuring that this iconic brand is top-of-mind.”

The introduction of Capri Sun in a single-serve format has benefited that business, Abrams Rivera said.

“The early success is very encouraging, with initial sales coming in five times greater than we expected,” he said. “Plus, we have entered the front of the store for the first time at checkout, where our on-the-go Capri Sun bottle is generating velocities at four times the rate of a key competitor.”

New flavors, improved packaging graphics and the introduction of value formats are the strategies the company is employing to improve the Kraft Mac & Cheese brand. Kraft Heinz is introducing globally inspired macaroni and cheese flavors to attract younger consumers and new packaging graphics are intended to inform consumers that the brand has had no artificial flavors, preservatives or dyes since 2016.

Kraft Heinz is focusing on value to reinvigorate its Kraft Mac & Cheese business.

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“And third, building on our commitment to delivering value, we are excited to introduce new value offerings that cater to evolving consumer needs and preferences,” Abrams Rivera said. “We recently launched our 11-oz box, which provides 50% more at a price point that is 20% less per ounce.

“To serve across multiple meal occasions, we are rolling out larger Mac & Cheese cups to capture the accelerating trend of mini meals. Our big cups are twice the size of the original and are perfectly suited to satisfy that larger than a snack hunger.”

With Kraft Mayonnaise, the focus is on regionality and targeting the business’ marketing spend on the three regions of the country that make up 75% of brand sales, Abrams Rivera said.

For the quarter ended March 29, Kraft Heinz’s net income fell 11% to $712 million from $801 million during the first quarter of fiscal 2024.

Quarterly sales fell 6.4% to $5.99 billion from $6.41 billion.

“As we navigate the current consumer landscape and macroeconomic conditions, our focus remains on delivering value to our consumers,” said Andre Maciel, global chief financial officer. “By unlocking efficiencies and optimizing our marketing spend, we are able to invest in price and support our brands.”

Maciel said he expects marketing as a percent of sales to be up in fiscal 2025 versus fiscal 2024, with a media spend increase of at least 15%.

“We are also targeting a double-digit increase in returns on that spend by optimizing our media mix and brand allocation,” he said.

Kraft Heinz’s updated full-year outlook now sees organic net sales in a range of down 1.5% to down 3.5% compared to the previous outlook of flat to down 2.5%.

“This guidance contemplates growth in Emerging Markets, which is expected to reach a double-digit pace by year end,” Maciel said. “It also reflects a relatively flat top-line performance in Global Away From Home relative to last year, and an elongated recovery in US Retail-challenged categories. Relative to our previous expectations, the change in organic net sales is primarily driven by worsening consumer sentiment and changes in volume elasticity.