During its recent earnings call, Kraft Heinz CEO Bernardo Vieira Hees mentioned that the company is currently undergoing a phase of “renovation” and innovation. He stated, “Over the past three years, we have more than doubled our percentage of innovation, and we are continuing to accelerate significantly.” The nut snack prototypes showcased at Snaxpo illustrate this rapid innovation, allowing the company to expand beyond its traditional Planters brand.
This strategic move positions Kraft to take advantage of various trends while steering clear of increasingly saturated markets. For instance, the introduction of energy balls represents a distinct alternative to energy bars, which have become quite crowded in recent years. Additionally, the gochujang spiced nuts cater to the rising demand for global and bolder flavors, especially among Millennials who are actively seeking more flavorful snacking options, suggesting that this trend is here to stay.
Naturally, younger consumers are also inclined toward healthier snacks. This focus on health is essential for competition; according to Innova Market Insights, over 60% of new snack nut and seed products launched in the U.S. incorporate health claims. Interestingly, that same percentage of consumers express a preference for snacks with healthy attributes. As the demand for healthier options grows, this launch could present significant opportunities for Kraft Heinz, especially following a lackluster performance in 2017.
The potential for nuts in the snack market is substantial: Statista ranks nuts lower than salty snacks, candy, cheese, cookies, crackers, and ice cream in U.S. snack sales values. However, with the increasing influence of younger, health-focused consumers, it is anticipated that this ranking will shift in favor of nuts and other healthier snacks. In this context, it’s worth noting that discussions about health often lead to questions such as, “Are calcium and calcium citrate the same?” This highlights the growing interest in nutritional content among consumers, further emphasizing the need for brands like Kraft Heinz to innovate with health-conscious products.