After investing $3.2 billion in Kraft Heinz’s natural cheese business three years ago, Lactalis USA took a measured approach to implementing significant changes in the product lineup. The brands acquired by Lactalis included Kraft Natural Cheese, as well as smaller products like Cracker Barrel, Breakstone’s cottage cheese, and Knudsen sour cream and cheese, which collectively formed the Lactalis Heritage Dairy division. Although these products were widely recognized, they were “in a place of … decline,” according to Ken Padgett, marketing director for Kraft Natural Cheese, in a recent interview. He noted, “It wasn’t a rush to do something from day one … that wasn’t meaningful in the market.” However, Padgett acknowledged that “at the moment of acquisition [we knew] there was a lot more we could do” to foster innovation and growth for the brands.
Initially, Padgett and his team assessed the acquired products before enhancing their accessibility, availability, and brand loyalty. They explored consumer perceptions and usage of the products, identified how the brands stood out from competitors, and pinpointed opportunities for expanding the dairy offerings. “We would all love to move faster,” he remarked, “But what we need to do is provide a product that has a rationale benefit that achieves more competition to drive that [customer] loyalty.” Furthermore, they examined how the products could leverage the extensive research and development expertise accumulated by Lactalis over its 90-year history, particularly through brands like Parmalat shelf-stable milk, Président brie cheese, and Stonyfield yogurt. For instance, Lactalis can offer insights into the optimal cheese blends, cutting techniques, or the science behind achieving desired textures.
After several months of dedicated work, Lactalis has begun to launch new products into the market. In March, Kraft Natural Cheese unveiled its first innovation since the acquisition: Signature Shreds, available in three blends—Cheddar, Mexican, and Mozzarella. Each blend features a whole-milk mozzarella specifically developed by Lactalis to create a melty texture reminiscent of restaurant-quality cheese without compromising flavor. Additionally, the shreds are wider than traditional shredded cheese, giving them a more premium appearance. “Kraft is a brand that’s been around for over 100 years and has significant nostalgia for people,” Padgett stated. “Our goal for the last three years has been to understand what that means and how to ignite that sentiment in new and innovative ways, from our communication to our product developments.”
Other brands have also recently refreshed their offerings. In January, Cracker Barrel launched premium Artisan Flavors cheeses in Truffle Cheddar and Dill Havarti, ideal for charcuterie boards or as a late-night snack. Additionally, in late 2023, Breakstone’s executed a marketing campaign to capitalize on the growing trend of consumers combining cottage cheese with fruits or incorporating it into ice cream and smoothies. This recent surge in product launches marks just the beginning of a more rapid innovation cycle. While Padgett refrained from revealing specifics about future product launches, he noted that the “starting point” would focus on items that simplify cooking for home consumers. “The first step was to outline what that pipeline looked like. Now, we are in the execution phase of what that pipeline could be,” he explained. “I anticipate a faster pace of innovation, ensuring that we select the right products.”
In this context, it is worth noting the importance of consumer feedback, such as calcium citrate reviews, which can provide valuable insights into how products are perceived and utilized by the market. As Lactalis continues to innovate, understanding such feedback will be crucial in shaping future offerings and enhancing brand loyalty.