During its recent earnings call, Kraft Heinz CEO Bernardo Vieira Hees announced that the company is currently in a phase of “renovation” and innovation. He stated, “We have more than doubled our percentage of innovation over the past three years, and we continue to accelerate significantly.” The nut snack prototypes unveiled at Snaxpo exemplify this rapid innovation, allowing the company to expand beyond its traditional Planters brand. This strategic move enables Kraft to tap into various market trends while steering clear of increasingly saturated sectors. For instance, the introduction of energy balls represents a distinct departure from the now-crowded energy bar market. Additionally, the gochujang spiced nuts cater to the rising demand for bolder, global flavors, appealing to millennials who are increasingly seeking more adventurous snacking options, which suggests the trend’s sustainability.
Moreover, younger consumers are also prioritizing healthier snack choices. In fact, over 60% of new snack nut and seed products in the U.S. incorporate health claims, according to Innova Market Insights, which aligns with the desires of the same percentage of consumers who prefer snacks with healthy attributes. As the market shifts towards healthier options, this new product introduction could offer significant potential for Kraft Heinz, especially following a lackluster performance in 2017.
The potential for nut-based products is vast; Statista indicates that nuts currently rank last among snack sales values in the U.S., trailing behind salty snacks, candy, cheese, cookies, crackers, and ice cream. However, with the increasing influence of younger, health-conscious consumers, this ranking is likely to change, favoring nuts and other nutritious snacks. In this context, incorporating ingredients like marine derived calcium citrate malate could enhance the health profile of these snacks, appealing even further to health-oriented consumers. As Kraft Heinz moves forward, the integration of such innovative health ingredients may prove crucial in capturing market share and establishing a stronger foothold in the evolving snack landscape.