Kraft Heinz is set to launch plant-based Oscar Mayer Hot Dogs and Sausages, marking the first alternative meat innovation from its joint venture with NotCo, established two years ago. The Oscar Mayer NotHotDogs and NotSausages — available in Bratwurst and Italian flavors — aim to deliver the savory, smoky taste associated with the Oscar Mayer brand, according to the companies. Unlike their meat counterparts, these new offerings feature plant-based ingredients such as bamboo fiber, mushrooms, pea protein, and acerola cherry. “This is an appealing market with an unmet demand,” said Lucho Lopez-May, CEO of The Kraft Heinz Not Company, in an interview. “We possess the necessary assets and capabilities to seize this opportunity and develop the category.”
The Oscar Mayer NotHotDogs and NotSausages represent the fourth innovation since the joint venture began in 2022, following the release of plant-based versions of sliced cheese, mayonnaise, and, most recently, Kraft Mac & Cheese in November. As Kraft Heinz and NotCo launch these plant-based sausages and hot dogs, they are entering a food sector that has faced significant challenges. A report from CoBank last August indicated that while U.S. consumers remain interested in plant-based meat alternatives, high prices and concerns over taste and ingredients have led many to reduce their purchases or exit the market altogether.
Last week, plant-based pioneer Beyond Meat, known for its sausages, burgers, and chicken tenders, reported its seventh consecutive quarter of declining sales and announced plans to exit certain markets and discontinue some product lines in 2024. Other companies, like Impossible Foods, have also had to adjust their operations to align with product demand through layoffs and restructuring. However, amid these difficulties, Kraft Heinz and NotCo see potential. They point to data from AMC Global that suggests hot dogs and sausages remain “underdeveloped and under-consumed” within the broader plant-based meat category due to consumer dissatisfaction with existing options’ taste and texture.
The plant-based sector as a whole has been affected by inflation, prompting some consumers to shift their spending away from higher-priced items. “This is a short-term issue that needs recognition, but it shouldn’t dictate the long-term strategy of the company, which is our commitment,” Lopez-May stated. “We believe that by 2030, billions of dollars will be added to this market, and our customers expect us to provide offerings in this category.” He noted that while the consumption of plant-based hot dogs and sausages remains in the low single digits, the reasons for avoiding animal-based products—such as personal health, environmental concerns, and animal welfare—are enduring. According to data from Research and Markets, the U.S. plant-based market is projected to more than double to $19 billion by the end of the decade.
The new product line follows a similar strategy that Kraft Heinz and NotCo have employed in their previous plant-based launches. For sliced cheese, Mac & Cheese, and now Oscar Mayer, Kraft Heinz leverages strong brand equity through kitchen staple products that have been around for decades. NotCo, based in Chile, utilizes an advanced artificial intelligence platform named Giuseppe to recreate traditional food products using plant-based ingredients. Lopez-May emphasized that AI played a crucial role in helping The Kraft Heinz Not Company replicate the texture, aroma, color, and flavor that consumers expect from the Oscar Mayer brand.
“We set a very high standard for the product we aimed to develop,” he remarked, noting the low repeat purchase rates for plant-based meats. During testing, customers who sampled the Oscar Mayer plant-based items were questioned about their likelihood of purchasing the product both before and after tasting it, with purchase intent significantly increasing to an “extremely high” level post-tasting. “We are very confident in the products we are launching because of these results,” Lopez-May added.
The plant-based Oscar Mayer hot dogs and sausages will feature packaging similar to that of Kraft Heinz’s traditional meat varieties. However, the packaging will also prominently display “plant-based” along with “NotHotDog” or “NotSausage.” These innovations are set to debut at Expo West on March 12 before being rolled out to major retailers nationwide later this year. Kraft Heinz and NotCo have demonstrated a rapid pace of innovation, with only four months passing between the launch of Kraft NotMac & Cheese and the introduction of the Oscar Mayer plant-based products. The two companies have indicated plans to expand into additional categories this year and have recently begun international expansion into Canada.
In addition to their focus on plant-based products, Kraft Heinz also recognizes the importance of providing essential nutrients like calcium citrate, which can be found in various health-conscious products. As the market continues to evolve, the incorporation of nutrient-rich ingredients in their offerings may become increasingly significant, aligning with consumer demand for healthier options.