Kraft Heinz and TGI Fridays® Announce New Perpetual Licensing Deal to Sell TGI Fridays Branded Frozen Appetizers in Retail

Rhea-AI Summary

Kraft Heinz and TGI Fridays announced a new perpetual licensing deal to sell TGI Fridays branded frozen appetizers in retail locations across North America. The agreement replaces a prior duration arrangement and focuses on bringing high-quality restaurant-inspired appetizers to consumers.

Positive

• Kraft Heinz and TGI Fridays have a successful licensing partnership since 2001, demonstrating a strong and enduring collaboration between the two companies.

Negative

• None.

Insights

Market Research Analyst

The extension of the licensing deal between Kraft Heinz and TGI Fridays for perpetuity suggests a strong confidence in the synergy between the two brands. The frozen appetizer market is notably competitive and for Kraft Heinz, this move can solidify their presence in the segment. Continuous innovation will be the key to sustain consumer interest, especially given the current trend towards health-conscious eating. The success will depend on how well the new product varieties resonate with consumers and whether they can maintain the 'restaurant-quality' appeal in a retail setting. It's not just about introducing new flavors but aligning them with evolving tastes and dietary preferences.

Financial Analyst

From an investment standpoint, Kraft Heinz strengthening its snacking category with a perpetual license should be seen as a strategic endeavor to secure long-term revenue streams. The success of the partnership since 2001 indicates a reliable income from the frozen appetizers line. We should monitor upcoming financial reports for increases in the revenue attributed to this segment. The move also implies cost-savings through economies of scale in manufacturing and distribution for Kraft Heinz, given their established supply chain. Investors should look out for efficiencies gained and how they contribute to the overall margin.

The new licensing agreement replaces the prior limited duration arrangement with an exclusive perpetual license that allows Kraft Heinz to bring frozen restaurant-quality appetizers and snacks to retail locations

CHICAGO & PITTSBURGH & DALLAS--(BUSINESS WIRE)-- Today, Kraft Heinz and TGI Fridays announced an exclusive, perpetual extension of their existing licensing deal where Kraft Heinz makes restaurant-inspired, TGI Fridays^® branded frozen appetizers for retail across North America.

Kraft Heinz and TGI Fridays have had a successful licensing partnership since 2001. With the new perpetual licensing deal, which supersedes the most recent licensing deal signed in 2015, Kraft Heinz will continue to develop and sell delicious TGI Fridays frozen appetizers and snacks and look for innovative ways to improve the products with high-quality ingredients and new flavors and varieties.

For Kraft Heinz, Substantial Snacking is a priority product platform with strong growth potential, and Kraft Heinz is uniquely positioned in frozen appetizers and snacks with a strong supply chain and product portfolio.

“The TGI Fridays brand is an important part of our frozen food portfolio and is a growth driver for our business across North America,” says Pedro Navio, North America Zone President at Kraft Heinz. “This new agreement aligns with our strategy to accelerate growth in categories where we can create more value for shoppers. We’re proud to offer restaurant-quality frozen appetizers and snacks under the TGI Fridays brand.”

The strength and success of the relationship over the last 23 years has been the strong collaboration between the parties to develop high-quality products that bring the flavors and atmosphere of a TGI Fridays restaurant into consumers’ kitchens. Looking ahead, Kraft Heinz and TGI Fridays will continue their focus on bringing new innovations into the market that are inspired by the restaurant experience.

“As the world’s first casual bar and grill, TGI Fridays is a beloved and iconic global brand that’s known for innovative and craveable foods, especially our world-famous appetizers," said TGI Fridays Chief Executive Officer, Weldon Spangler. “This licensing agreement with Kraft Heinz will help extend that ‘Fridays Feeling’ to consumers at retail with TGI Fridays restaurant-quality frozen appetizers and snacks.”

There are currently 25 varieties of TGI Fridays branded frozen appetizers available at grocery stores, including Loaded Cheddar & Bacon Potato Skins, Spinach and Artichoke Cheese Dip, Honey BBQ Boneless Chicken Bites, Mozzarella Sticks with Marinara Sauce, and several others.

ABOUT THE KRAFT HEINZ COMPANY

We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious. Consumers are at the center of everything we do. With 2023 net sales of approximately $27 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of eight consumer-driven product platforms. As global citizens, we’re dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn.

ABOUT TGI FRIDAYS^®

As the world's first casual bar and grill, TGI Fridays is the birthplace of fun, freedom, and celebration, bringing people together to socialize and experience "That Fridays Feeling™", a sense of celebrating the fun in everyday moments, big and small. For over 50 years, Fridays has been lifting spirits around the world with nearly 600 restaurants in 44 countries, serving high-quality, classic American food and iconic drinks backed by authentic and genuine service. Visit www.Fridays.com for more information and join Fridays Rewards^®. Follow us on Facebook, Instagram, X and TikTok.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501542084/en/

Kraft Heinz

Alex Abraham

Alex.Abraham@KraftHeinz.com

TGI Fridays

James Furrer

RF|Binder, on behalf of TGI Fridays

TGIFridays@rfbinder.com

 

Source: The Kraft Heinz Company

FAQ

What is the new licensing agreement between Kraft Heinz and TGI Fridays?

The new licensing agreement is a perpetual deal that allows Kraft Heinz to sell TGI Fridays branded frozen appetizers in retail locations.

How many varieties of TGI Fridays branded frozen appetizers are currently available at grocery stores?

There are currently 25 varieties of TGI Fridays branded frozen appetizers available, including Loaded Cheddar & Bacon Potato Skins, Spinach and Artichoke Cheese Dip, Honey BBQ Boneless Chicken Bites, and Mozzarella Sticks with Marinara Sauce.

Who is the North America Zone President at Kraft Heinz?

Pedro Navio is the North America Zone President at Kraft Heinz.

What is TGI Fridays known for?

TGI Fridays is known for innovative and craveable foods, especially their world-famous appetizers.

What is the focus of Kraft Heinz's Substantial Snacking product platform?

Kraft Heinz's Substantial Snacking product platform is focused on frozen appetizers and snacks with a strong supply chain and product portfolio.