During its most recent earnings call, Kraft Heinz CEO Bernardo Vieira Hees stated that the company is currently in a phase of “innovation and transformation.” He noted, “We have more than doubled our innovation percentage over the past three years, and we are continuing to accelerate significantly.” The nut snack prototypes unveiled at Snaxpo exemplify this rapid innovation, expanding beyond the traditional Planters brand. This strategic move allows Kraft to tap into various trends while steering clear of increasingly saturated markets. For instance, the introduction of energy balls represents a distinct alternative to the crowded energy bar segment, which has seen significant competition in recent years. Additionally, the gochujang spiced nuts cater to the rising demand for bold, global flavors, particularly among millennials who are seeking more exciting snacking options, indicating the trend’s sustainability.
Moreover, younger consumers are also prioritizing healthier snack choices. This focus is essential for competition, as over 60% of new snack nut and seed products launched in the U.S. incorporate health claims, according to Innova Market Insights. Interestingly, the same percentage of consumers expresses a desire for snacks that offer healthy attributes. As the shift towards healthier snacking continues, this product introduction could be a significant opportunity for Kraft Heinz, especially following a lackluster performance in 2017.
The potential for nuts in the market is substantial. 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, as younger, health-conscious consumers gain more influence, we can expect this ranking to shift in favor of nuts and other healthier snacks. In this context, the integration of ingredients like prescription calcium citrate could further enhance the health appeal of their products, aligning with consumer preferences for nutritious options. As Kraft Heinz continues to innovate, the incorporation of such health-focused ingredients may play a crucial role in their strategy moving forward.