The Kraft Heinz Not Company Introduces KD NotMacandCheese: The First Plant-Based Offering from KD

Rhea-AI Summary

Kraft Heinz (KHC) launches KD NotMacandCheese, the first plant-based KD offering, and KD Gluten Free to cater to the growing demand for plant-based and gluten-free options in Canada. The launch is a result of a joint venture with TheNotCompany, Inc. The products aim to provide consumers with the familiar taste of KD without compromising on flavor. KD NotMacandCheese comes in Original and White Cheddar Style, while KD Gluten-Free is available in Original flavor. The release addresses the increasing demand for plant-based and gluten-free alternatives in the food market, with KD leveraging its iconic status to introduce innovative products to meet consumer preferences.

Insights

Market Research Analyst

With the introduction of KD NotMacandCheese and KD Gluten Free, Kraft Heinz is capitalizing on two significant consumer trends: the rise in plant-based diets and the demand for gluten-free products. The company's alignment with these trends is strategic, considering over half of Canadians are either following a plant-based lifestyle or intending to incorporate more plant-based foods into their diet and close to ten million Canadians are seeking gluten-free options. This move could potentially expand Kraft Heinz's market share in the Canadian food industry and strengthen brand loyalty among health-conscious consumers.

In terms of financial implications, the success of these product launches could lead to increased sales revenue and market penetration. It is crucial, however, to monitor the consumer acceptance of these new products, particularly regarding taste and texture, which have been historical barriers in the plant-based category. The company's use of NotCo's technology suggests a focus on replicating the sensory experience of traditional mac n' cheese, which could be a differentiating factor in a competitive market.

Nutrition Expert

KD's plant-based and gluten-free offerings are responding to a health-conscious consumer base that prioritizes dietary restrictions and preferences. The products' nutritional profiles will be under scrutiny, as plant-based and gluten-free alternatives often face challenges such as being highly processed or containing less protein. For consumers with celiac disease or gluten sensitivity, the gluten-free option addresses a genuine health need, while the plant-based version caters to those seeking to reduce animal-derived ingredients for health, ethical, or environmental reasons.

From a nutritional standpoint, these products could support a diverse and inclusive diet, but it is essential to evaluate the ingredient lists and nutritional information. The long-term success of these products will depend on their ability to provide not only taste but also nutritional benefits that align with consumers' expectations for healthier alternatives.

Sustainability Analyst

The shift towards plant-based products is not only a response to consumer health trends but also aligns with increasing concerns about sustainability and the environmental impact of food production. Plant-based diets are generally associated with lower carbon footprints compared to traditional dairy and meat-based products. Kraft Heinz's partnership with NotCo leverages innovative food technology to potentially reduce the environmental impact of its product offerings.

This initiative may enhance the company's corporate social responsibility profile and appeal to investors who are increasingly attentive to environmental, social and governance (ESG) factors. The success of KD NotMacandCheese could serve as a catalyst for further sustainable product development within Kraft Heinz's portfolio, potentially leading to improved ESG ratings and investor interest in the long term.

To give fans even more ways to enjoy KD, Canada’s original Mac n’ Cheese is also debuting its first gluten-free product

TORONTO--(BUSINESS WIRE)-- Today, The Kraft Heinz Not Company LLC launched KD NotMacandCheese, the first plant-based KD offering. This marks the first Canadian brand to launch a product out of the joint venture between The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz”) and TheNotCompany, Inc. (“NotCo”), which aims to create mouthwatering, plant-based foods for all. To give fans even more ways to enjoy KD, the iconic mac n’ cheese brand is also launching its first-ever, gluten-free offering.

KD NotMacandCheese and KD Gluten Free (Photo: Business Wire)

More than half of Canadians follow a plant-based lifestyle or are looking to add more plant-based offerings to their diets.¹ Yet consumers’ continued disappointment in the taste of current offerings remain the biggest challenges for brands operating in the plant-based food market.² As Canada’s original mac n’ cheese, KD is uniquely positioned to disrupt the category and address consumers’ plant-based preferences with a product that offers fans the creamy and comforting taste, texture and flavour they have loved for over 85 years, without the cheese. Available in two irresistible variations – Original and White Cheddar Style – KD NotMacandCheese is now rolling out on shelves nationwide.

“More Canadians than ever are looking for easy plant-based alternatives to pantry staples that don’t ask them to give up the foods they love, and they want options from their favorite brands that taste, look, and feel like the originals,” says Lucho Lopez-May, CEO, The Kraft Heinz Not Company. “This is the core mission of The Kraft Heinz Not Company: to bring easy, accessible, and delicious plant-based alternatives from the world’s most beloved brands to the masses. Found in nearly half of all Canadian pantries, KD is Canada’s most iconic mac and cheese brand, and we are excited to leverage its strength alongside NotCo’s revolutionary technology for our first branded Canadian product launch.”

Further, close to ten million Canadians have shared they are looking for gluten-free food options, with 15,000 devoted KD fans signing a petition to encourage the brand to bring a gluten-free version of the beloved pantry staple to grocery store shelves.³ Now, KD is answering the call with a delicious option that looks and tastes like the original – without the gluten. KD Gluten-Free is available in Original flavour and is now rolling out on shelves nationwide as well.

KD NotMacandCheese and KD Gluten Free are the latest examples of Kraft Heinz's portfolio expansion as the company strives to deliver innovations that meet the evolving needs and preferences of today’s consumer. For more information and to stay up to date on all things KD, Kraft Heinz, and NotCo, follow along on Instagram (@KraftDinnerCA, @kraftheinzus, @NotCoUS) and TikTok (@KraftDinnerCa, @hereatkraftheinz, @NotCoUS).

¹Mordor Intelligence, Canada Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029
²Future Market Insights, Plant-based Food: A Revolution in the Making or a Passing Fad? April 2023
³Celiac Canada Website, 2024

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 The Kraft Heinz Company across a portfolio of six 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312672983/en/

The Kraft Heinz Company

Shanice Atkins-Broome

shanice.atkins-broome@kraftheinz.com

Zeno Group Canada

Kathleen Bennett

Kathleen.bennett@zenogroup.com

Source: The Kraft Heinz Company

FAQ

What is the ticker symbol for The Kraft Heinz Company?

The ticker symbol for The Kraft Heinz Company is KHC.

What are the new products launched by Kraft Heinz in Canada?

Kraft Heinz has launched KD NotMacandCheese, the first plant-based KD offering, and KD Gluten Free in Canada.

What are the variations available in KD NotMacandCheese?

KD NotMacandCheese is available in Original and White Cheddar Style variations.

What is the target market for the new products launched by Kraft Heinz?

The new products launched by Kraft Heinz target consumers looking for plant-based and gluten-free alternatives in Canada.

Where can consumers find KD NotMacandCheese and KD Gluten Free?

KD NotMacandCheese and KD Gluten Free are rolling out on shelves nationwide in Canada.