Kraft Heinz has been a household name for decades, with well-known foods like Heinz Ketchup, Philadelphia Cream Cheese, and Kraft Mac & Cheese living in kitchen cupboards all the time. Now, the food giant wants to have the same success outside of homes by growing its food service business.
This puts its goods in arenas, hospitals, schools, hotels, and restaurants worldwide. This change is part of a bigger plan to get more people to know about the company and expand its business beyond regular stores.
It’s Time for Kraft Heinz to Move Away from Home Businesses as a Growth Driver
Away From Home was not a top concern for Kraft Heinz until a few years ago. Its goods were indeed used in places other than homes, but the company wasn’t yet fully committed to this area as a key growth driver.
The head of Away From Home and Kraft Heinz’s ingredients business in North America, Peter Hall, said the company saw its role in the catering industry as a set of “undefined opportunities.” They didn’t have a clear plan or strategy.
On the other hand, Kraft Heinz has changed. The company now sees its Away From Home business as “an integral strategic building block” for its future growth. It’s no longer just about making more sales for this business; it’s also about building the brand and finding new ways to connect with customers.
Focusing Twice as Much on Data and New Ideas
Kraft Heinz made big changes to its Away From Home business so that it could reach its full potential. The business grew by hiring more people, improving data analysis, and putting more effort into research and development.
Because the company is so focused on coming up with new ideas, it has been able to spot trends earlier and make goods that people and businesses like.
Instead of just “selling more stuff,” Kraft Heinz knows that catering is a key way to get more people to try some of its most famous goods and raise brand awareness.
For example, Heinz Ketchup and Philadelphia Cream Cheese are well-known brands, but the company saw a chance to promote them in restaurants, schools, and venues where people might not normally think to buy them. In this way, Kraft Heinz can improve the image of its business and meet new people.
More Attention Is Being Paid to New Channels and Going Global
Kraft Heinz isn’t just interested in North America; it thinks its Away From Home business can grow worldwide. Peter Hall says that the next ten years are all about ensuring that Kraft Heinz goods are in people’s hands every day, not just at home but in many other places. The company has made this long-term pledge because it thinks that this plan will help it grow for at least ten years.
Last year, sales in Kraft Heinz’s Away From Home increased by 14%, indicating that the plan is working. More businesses have opened up in North America and other places, which has helped the company grow its market share. In just the last six months, there have been “multiple millions” of new business deals for Kraft Heinz. The business wants this section to grow by 2% to 3% each year for the next ten years.
Making New Products to Keep Up with Market Trends
Through its Away From Home division, Kraft Heinz has also been quick to introduce new goods, sometimes even releasing them before they hit store shelves.
For example, the company made Sauce Drops, a limited-time item in 2023 that came in new tastes like Yuzu Wasabi, Creamy Chimichurri, and Hatch Chili Ranch. Because these sauces were sold in restaurants, Kraft Heinz could see how interested customers were and plan for future product launches.
The business has also invested in making its condiment containers easier to use and more in line with changing buyer tastes. Kraft Heinz released the Heinz Remix machine in 2023.
This machine lets customers mix their favorite sauces to make unique taste combinations. The fact that this product was made in only six months shows how committed the company is to making quick changes to meet market needs.
The Heinz Tap is another original product. It has seven pumps next to each other, giving you choices like mayonnaise, mustard, ketchup, and ranch dressing. These tools are made for places like stadiums and restaurants where many sauces need to be available quickly. This tool makes using condiments easier for customers and food service workers.
Going Beyond Restaurants: New Growth Opportunities
Kraft Heinz’s food service business has mostly come from restaurants in the past, but the company wants to grow into new places like schools, arenas, and hospitals.
Hall said that over the last three years, the company has been changing from a restaurant-focused business to what he calls an “everywhere business.” This means Kraft Heinz is actively looking for new verticals and possibilities outside its usual strongholds.
This change in approach shows that people are becoming more aware of the “huge world away from home” that is not restaurants. Food is bought daily in huge places like schools, hospitals, and stadiums, and Kraft Heinz is eager to get a bigger share of these changes.
Famous Brands and One-Of-A-Kind Items
One of Kraft Heinz’s Away From Home division’s strengths is that its well-known names are easy to spot. Nearly two-thirds of the items sold in this section are well-known brands people trust, like Heinz Ketchup, Kraft Mac & Cheese, and Philadelphia Cream Cheese.
Thanks to its brand’s already-well-known status, Kraft Heinz has a strong base to build on as it moves into new settings and countries.
But not all things sold in restaurants are also sold in shops. For example, the company has a line of high-end canned tomatoes called Escalon that is only sold to food service businesses.
This lets Kraft Heinz ensure that certain goods meet the needs of restaurants, cafeterias, and other businesses, giving them a better experience than the normal person shopping in a store.
In Conclusion
It’s already paid off for Kraft Heinz to focus on its Away From Home business. By switching its focus from selling more goods to using catering to build its brand and get more people to know about it, the company has set itself up for continued success in the years to come.
Innovation, data analytics, and research and development are important to the company. They help it develop new goods and improve current ones, which helps it stay ahead of market trends. Kraft Heinz is set to keep growing because it wants to go global and try new things, like selling in schools and hospitals.
Kraft Heinz wants its goods in people’s hands daily, whether at home or in places like restaurants and stadiums. This shows the company’s strategy for the future. By investing heavily in food service, Kraft Heinz is setting itself up for ten years of growth and brand-building success.
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