CHICAGO — The Kraft Heinz Co. is looking to bring consumers both new flavors and experiences.
At the recent Sanford C. Bernstein Strategic Decisions Conference, chief executive officer Miguel Patricio said that continually trying to forecast consumer trends 10 years into the future will fuel company growth. Looking ahead, Kraft Heinz will focus on innovation, with 124 employees working on “disruptive” innovation, Mr. Patricio said, adding the emphasis on innovation has attracted talented employees to the company.
In the foodservice sector, Kraft Heinz is focusing on customization, as the company is targeting $2 billion in incremental sales by 2027. In May 2023, the company launched Heinz Remix, a customizable, digital sauce dispenser where consumers can personalize their own sauce creations. The machine, which debuted at the 2023 National Restaurant Association show in Chicago, is free-standing with a touchscreen that gives consumers over 200 potential sauce combinations. Kraft Heinz is aiming to pilot the machine, which also monitors sauce combination trends, at foodservice locations in late 2023 or early 2024.
“As a consumer-obsessed company at the forefront of food culture, we saw an exciting opportunity to innovate around our core customers and consumers evolving needs and desires,” said Alan Kleinerman, vice president of disruption, Kraft Heinz, when the machine made its debut. “We want to drive value for foodservice operators in ways that will make their lives easier and keep their guests coming back.”
Kraft Heinz’s first-quarter financial results were buoyed by success within its emerging markets and foodservice categories.
“We have been consistently saying that we’ll grow through emerging markets, and we grew 23% this quarter, we’ll grow through foodservice globally, and we grew about 29% this quarter, and we’ll grow through our priority growth platforms in US, Easy Meals and Taste Elevation where we had double-digit growth,” Mr. Patricio said during a May 3 investor call. “The rest of the portfolio has to free up resources to invest in our strategy. These results are possible not only because of our strategy, but because of everything that is behind our strategy.”
On the retail side, the company is investing within its coffee portfolio. In May 2023, Kraft Heinz brought IHOP-branded coffee to grocery stores nationwide for the first time. The coffee blends are formulated with 100% premium arabica beans and come in three options: signature blend, buttery syrup and pancake-flavored chocolate chip.
“Given Kraft Heinz's heritage with iconic coffee brands, we’re thrilled to leverage our longstanding category experience to create a premium coffee product,” said Kaitlin Roe, director of marketing at Kraft Heinz, when the collaboration was announced. “This partnership allows us to combine our scale and capabilities with the power of a fan favorite brand like IHOP to reach new consumers in the market.”
Kraft Heinz also is focusing on coffee introductions within its other brands. Maxwell House, a division of the company, added three varieties of iced lattes with foam to its portfolio. To make the iced coffee, consumers need to add the individual packet to iced water and stir. The foaming agent also is included in the sachet. Kraft Heinz also announced that it will be rebranding its Maxwell House division for the first time in 10 years, as it looks to reach a younger category of coffee drinkers, according to the company.
“As iced beverages continue to rise in coffee shops, this opens a huge opportunity to continue the growth of cold in the coffee aisle at grocery stores,” said Sweta Kannan, director of marketing and coffee innovation at Kraft Heinz. “Our never-before-seen cold-stirred foam technology will allow coffee lovers to save the time and money of going to a coffee shop, and instead inspire them to unleash their inner barista by providing an easy-to-make cafe style experience with every sip in three simple steps.”
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