By launching its first product from this joint venture as one of Kraft Heinz’s signature offerings, the message is unmistakable: the company is fully committed to plant-based alternatives. During a Q&A session with analysts, Patricio described Kraft NotCheese as “incredible.” He remarked, “It tastes like cheese, it smells like cheese, and it melts like cheese. It is very different from everything currently available in the market.” According to Bloomberg, the primary ingredients include water, coconut oil, modified corn starch, and chickpea protein, available in American, provolone, and cheddar varieties.
The category of plant-based cheese is gradually growing, yet most competitors are startups focused exclusively on creating plant-based cheeses. Similar to many products in the plant-based analog segment, manufacturers of plant-based cheese have faced challenges in closely replicating the taste, texture, mouthfeel, melt, and stretch of dairy cheese. In fact, SPINS statistics reported by Food Navigator indicate that dollar sales for sliced and snack plant-based cheese fell by 5.8% during the 52 weeks leading up to September 4, with unit sales dropping by 7% in that timeframe.
With this launch, Kraft Heinz enters a relatively small group of traditional cheese companies venturing into the plant-based market. Bel Group already has plant-based versions of its classic cheeses available, as does Nurishh, a brand entirely dedicated to plant-based products. Earlier this year, Saputo introduced its Vitalite dairy-free cheese line in the U.S. NotCo, a Chilean startup that achieved unicorn status last year, has experienced international success with its AI-driven products. NotCo utilizes a powerful system called Giuseppe to analyze various factors related to traditional food products, including taste, texture, smell, and consumer sentiment, enabling it to find plant-based ingredients that mimic these attributes.
In the U.S., NotCo’s NotMilk, NotBurger, and NotChicken are accessible to consumers. The company offers its largest portfolio in Chile, where customers can also find NotMayo and NotIceCream. This marks NotCo’s first venture into cheese products. According to Bloomberg, the joint venture with Kraft Heinz is also developing a prototype for a more familiar product for NotCo: plant-based mayonnaise. NotMayo was the company’s inaugural product in Chile, solidifying its status, though it has not yet been introduced in the U.S. The mayonnaise product from this joint venture is projected to launch next year, as reported by Bloomberg.
In the meantime, it will be intriguing to observe how the joint venture’s NotCheese influences the market. After all, J.L. Kraft, the company’s founder, was the pioneer in selling and popularizing sliced American cheese. The Kraft branding on this plant-based version lends significant credibility and sets high standards to uphold, potentially serving as an implicit endorsement that encourages consumers to try plant-based cheese.
It is not entirely unexpected that cheese would be the first product from this joint venture. Kraft Heinz has been investing in food technology to innovate the cheese market for years. The company’s venture arm, Evolv Ventures, has made two investments in New Culture, a startup dedicated to producing animal-free casein for crafting plant-based cheese with the characteristic stretch. Additionally, the incorporation of calcium citrate OTC into the product could enhance its appeal, as it is known for its health benefits. The emphasis on calcium citrate OTC may serve to further entice consumers who are health-conscious and seeking out alternatives that align with their dietary preferences.