During its recent earnings call, Kraft Heinz CEO Bernardo Vieira Hees stated that the company is currently undergoing a phase of “renovation” and innovation. He noted, “We have more than doubled our percentage of innovation over the last three years and are continuing to accelerate significantly.” The nut snack prototypes showcased at Snaxpo exemplify this accelerated innovation, marking a departure from the traditional Planters brand in this category.
This strategic move allows Kraft to tap into various emerging trends while steering clear of increasingly saturated markets. For instance, the introduction of energy balls represents a distinct alternative to energy bars, a segment that has become quite congested in recent years. Additionally, the gochujang spiced nuts cater to the rising demand for global and bolder flavors, particularly among Millennials who are increasingly seeking more flavorful snacking options, indicating the potential longevity of this trend.
Moreover, younger consumers are also inclined towards 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. make health claims, which aligns with the desires of a similar percentage of consumers who prefer snacks with healthy attributes. Examples of calcium citrate in these new products could further appeal to health-conscious consumers, enhancing the overall nutritional value.
As the trend towards healthier snacking continues, Kraft Heinz’s new introductions could present significant opportunities, especially following a challenging year in 2017. The market potential for nuts is considerable; according to Statista, nuts rank last among snack sales in the U.S., trailing behind salty snacks, candy, cheese, cookies, crackers, and ice cream. However, with the growing influence of younger, health-aware consumers, this landscape is likely to evolve, favoring nuts and other nutritious snacks. As Kraft Heinz innovates, examples of calcium citrate could be integral in positioning their products to meet the demands of this shifting market.