Kraft Heinz Beats Q1 Earnings Expectations as New CEO Focuses on Legacy Brands

Kraft Heinz reported first-quarter earnings and revenue that topped expectations on Wednesday. Shares rose more than 2% following the results. Kraft Heinz CEO Steve Cahillane appeared on CNBC's Mad Money on Wednesday and said the company's biggest growth opportunity is reinvesting behind its legacy brands.

He said he found outstanding brands at Kraft Heinz that had been underinvested, adding that with investment, focus, attention, good customer plans and good consumer plans, the brands can grow again. Cahillane, who joined Kraft Heinz in January after previously leading Kellogg's, said the company is focusing investment behind categories where it believes it has the right to win.

"One of the single clearest examples of that is the brand Heinz," he said.

Despite that recognition, Cahillane said household penetration of Heinz remains far below its potential. The packaged food giant is known for brands including Heinz, Kraft, Philadelphia Cream Cheese, Lunchables, Oscar Mayer and Capri Sun. Kraft Heinz announced plans to unwind its 2015 merger in September.

In February, Cahillane said work on the separation was being paused, believing its problems could be fixed without a breakup. Cahillane said Kraft Heinz's strategy is centered on reinvesting behind its biggest brands and making them more relevant for what the consumer wants. Health and wellness is a real trend and clean labels is a real trend, he added.

The company launched PowerMac macaroni and cheese containing 17 grams of protein and six grams of fiber. Cahillane pointed to the product as part of efforts to renovate, replace and innovate around health and wellness. Kraft Heinz also introduced a Capri Sun version with electrolytes.

Cahillane said the electrolyte version of Capri Sun is halfway between a kids drink and a sports drink, an innovation aimed at retaining customers as children age out of the brand. com reported that Cahillane described the approach as modernizing legacy brands to shifting consumer preferences.

"What I found when I came inside Kraft Heinz is … outstanding brands that had been underinvested," he told CNBC.