Kraft Heinz bets on more flavors for Philadelphia cream cheese as it looks to revive brands

Philadelphia cream cheese will release three new flavors on Tuesday as part of Kraft Heinz's broader plan to reinvest in its iconic brands and win back shoppers.

Previously, the 154-year-old brand released about one or two new flavors such as garden vegetable or pineapple every year. Over the next two years, it plans to launch 10 new varieties, with the goal of "creating some excitement" within the cream cheese category, according to Jerome Drolet, Kraft Heinz's president of taste elevation.

Drolet's position is a nod to Kraft Heinz's now-paused split. When the packaged foods giant planned to spin off into two separate companies, one had the temporary name of "Global Taste Elevation," which would house condiments, sauces and Kraft Mac & Cheese. For now, Kraft Heinz is sticking together and trying to stage a comeback by making its legacy brands more relevant.

In the period since Kraft Heinz announced the split was paused, the company's shares have fallen 2%. Some investors are pessimistic that its well-known but stalled brands can ever regain shoppers' favor, even with a $700 million investment from Kraft Heinz.

Some of that money is pouring into Philadelphia. The company's spending on the cream cheese brand is expected to climb 63% this year compared with 2025, including more backing for its research and development, according to Drolet. And investment in new flavors has quadrupled, he said.

Philadelphia accounts for about 62% of U.S. cream cheese sales, according to data from Euromonitor International. But its dominance means that it is responsible for growing sales of the overall cream cheese category.

Kraft Heinz is hoping that new flavors will drive more cream cheese sales. The first round of new Philadelphia releases includes Mike's Hot Honey whipped cream cheese, salted caramel and a seasonal cranberry orange, which will only be available for a limited time. The Mike's Hot Honey flavor will launch in Walmart exclusively until it hits other retailers' shelves in January.

"We want to make sure that the profile of the products we're launching are hitting critical masses," Drolet said. "It needs to be incremental, but it also cannot be too niche so that it only sells a few units."

As part of the strategy to widen cream cheese's appeal to shoppers, Philadelphia also launched a lactose-free version earlier this year.

Some of Philadelphia's expanded marketing spend will once again focus on the brand's "pure dairy equity," according to Drolet. The strategy recalls the ethos that inspired its Philadelphia cream cheese angel campaigns of the 1990s. In February, it launched its "Really Philly good" campaign.

The brand is also trying to reach consumers to encourage them to use cream cheese as more than a schmear for a bagel. Philadelphia's cream cheese brick has already been a cooking and baking staple for decades. Expect to see more TikTok influencers and recipe websites using Philadelphia cream cheese in creative ways.

Drolet sees opportunities to use them in dips and even pasta sauce — like swapping out heavy cream for the Mike's Hot Honey cream cheese in a Bolognese.