Kraft Heinz and its partner NotCo, which specializes in plant-based products, are not intending to slow down the introduction of new offerings in this category, even as some competitors are scaling back their ambitious plans. “We are not focused solely on one specific area,” stated Lucho Lopez-May, CEO of The Kraft Heinz Not Company, in a recent interview. “We are aware that there are markets where we can continue to fulfill our mission that we are not currently engaged in.”
Lopez-May emphasized that the joint venture of The Kraft Heinz Not Company has two key advantages that set it apart from competitors. The first is the significant brand equity that Kraft Heinz brings, with numerous products that have been staples in households for decades. Additionally, NotCo, based in Chile, offers a robust artificial intelligence platform that helps in reformulating traditional food products using plant-based ingredients. This technology enables The Kraft Heinz Not Company to create plant-based substitutes for dairy, eggs, and meat that closely mimic the originals, enhancing the likelihood of consumer acceptance.
Since their partnership began in 2022, Kraft Heinz and NotCo have launched products across various categories: sliced cheese and Mac & Cheese for dairy, mayonnaise for eggs, and most recently, Oscar Mayer hot dogs and sausages for meat. In searching for new product ideas, Lopez-May stated that the venture will assess whether there are categories that could benefit from a plant-based offering. The Kraft Heinz Not Company then evaluates whether it has the brands to fill that gap, if it can provide a product that meets consumer taste preferences—especially for those who enjoy both plant- and animal-based foods—and whether it can do so cost-effectively to reach a broad audience.
“We are committed to replicating that plant-based portfolio, which is why you see us actively exploring different spaces to ensure we offer alternatives for flexitarian consumers across all their needs,” Lopez-May remarked. “This is also why we are striving to broaden our portfolio.”
The increased focus on plant-based foods by The Kraft Heinz Not Company comes during a challenging period for the sector, which has been experiencing a prolonged downturn. Inflation has led many consumers to abandon the pricier plant-based options in favor of animal-based products. Concerns have also been raised about the quality of existing plant-based items and the ingredients used in their production. Major players in the market, such as Beyond Meat and Impossible Foods, have laid off staff, discontinued products, and reduced their long-term strategies.
Regarding the Oscar Mayer NotHotDogs and NotSausages, the partnership pointed out that hot dogs and sausages remain “underdeveloped and under-consumed” within the broader plant-based meat category, primarily due to dissatisfaction with the taste and texture of existing offerings. Lopez-May noted that while the consumption of plant-based hot dogs and sausages is currently low, the reasons for choosing plant-based over animal-based options—such as personal health, environmental impact, and animal welfare—are still relevant. He highlighted that the U.S. plant-based market is expected to more than double to $19 billion by the decade’s end, according to Research and Markets.
Consumer interest in the initial three products launched by The Kraft Heinz Not Company has been “strong,” according to Lopez-May. The Oscar Mayer NotHotDogs and NotSausages debuted in early March. While he did not disclose specific sales figures, he mentioned that their plant-based cheese slices are gaining distribution and are already the best-selling plant-based cheese in the Northeast. The mayonnaise holds the second-highest velocity in the animal substitute condiment category where it’s available, and the Mac & Cheese has become the top-selling product in the plant-based category where it’s sold. “It’s quite an achievement to develop product formulations and scale them up in such a short timeframe,” he added.
The Kraft Heinz Not Company is planning further product launches in 2024 and recently made its first international expansion into Canada. Lopez-May did not provide details about the next product set to launch but indicated that innovations, including those incorporating beneficial ingredients like rugby calcium citrate 950 mg, are on the horizon.