Kraft products include Oreo cookies, Maxwell House coffee and its namesake macaroni and cheese, among others.
Kraft is replacing Sabre Holdings
Separately, Kraft will replace Eastman Kodak .
S&P said Eastman Kodak has a market capitalization of about $6.8 billion, ranking 100th in that index. Kraft's market value is about $52.2 billion.
The change comes nearly three years after Kodak ended a nearly 74-year run in the Dow Jones industrial average.
Kodak expects this year to complete an overhaul that began in 2004, and will result in the loss of as many as 30,000 jobs. The company has been shifting its focus to digital products as demand falls for film, traditionally its main revenue source.
Shares of companies joining the S&P 500 often rise because many investors try to track the index and are required to buy shares of companies that enter it. Kraft's inclusion in the index had been widely expected. Its shares closed Thursday up 50 cents at $31.85, and rose as high as $32.34 after the S&P announcement.