Ketchup giant Kraft Heinz is targeting younger consumers
The food industry giant Kraft Heinz plans to enter the school catering sector in the United States by offering its own branded products in cafeterias. Its goal is to introduce its food products to the new generation of consumers. According to Miguel Patricio, the CEO, schools can play a critical role in boosting the company’s food division, and the long-term marketing strategy could drive demand for their products.
In its May quarterly report, KHC highlighted that they view school catering as a sector with a $25 billion potential that remains untapped, and they aim to gain a larger market share there.
However, this strategy has faced criticism from dietitians, child protection experts, and those responsible for school catering, as they believe that the company’s processed and pre-packaged products could endanger developing bodies.
Nevertheless, earlier this year, the company announced a complete transformation of its Lunchables brand products, aiming to align them with school nutrition guidelines.
Until they conquer the school cafeterias, the company needs to convince schools that their products are not only healthy but also more cost-effective than the existing systems.
Previously, KHC had neglected its food business, but Carlos Abrams-Rivéra, the company’s North American leader and expected CEO from 2025, has developed a new strategy that would completely reshape it.
However, before gaining a foothold in school catering, they must persuade schools that their products are not only healthy but also more cost-effective than the current systems.
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