Kraft Heinz Is Courting Gen Z With Taco Bell Meal Kits, ASMR Content And More
Source: ModernRetail, Gabriela Barkho
Photo: Kraft Heinz/Taco Bell
Food manufacturer Kraft Heinz is adjusting its product positioning across many of its brands like Kraft Singles, Philadelphia and Velveeta to better align with Gen Z preferences.
Overall, Kraft Heinz is trying to court this new generation of household grocery shoppers through a multi-pronged approach. It is launching new products that appeal to Gen Z’s flavor preferences and habits. Kraft Heinz is also rolling out more marketing campaigns that are designed for the social channels that Gen Z spends most of its time on, like TikTok and Snapchat.
A recent launch from Kraft Heinz’s line of frozen Mexican cuisine, called Delimex, illustrates one way that this is playing out. In October, Delimex launched a new line of crispy quesadillas. The launch campaign focused on ASMR sound — a social media trend featuring heightened and isolated noises — to highlight the product’s loud, crispy bite, as seen via new Snapchat AR filters and TikTok content.
The push comes at a time when Kraft is adjusting its portfolio to changing tastes by focusing on innovation. In October, the company posted its third-quarter earnings, in which it reported $6.38 billion in revenue, missing analysts’ forecast of $6.41 billion. Kraft Heinz also recorded $290 million in losses. Also this month, Kraft Heinz pulled its Lunchables school program after it failed to gain traction.
Stefanie McNansky, head of growth strategy at Kraft Heinz, told Modern Retail the company’s portfolio is currently going through transformation both on the product R&D and marketing side. “Gen Z is moving over into adulthood and are becoming more of the day-to-day purchasers,” McNansky said. “So that’s a lot of what we’re trying to build around our portfolio, both through digital communication and at the store level.”
Bold and global flavors
McNansky pointed to beloved brands like Kraft Mac & Cheese and Kraft Singles, which the parent company is trying to position as convenient foods for younger consumers.
“Kraft Singles is a great example of a 100-plus-year-old brand where we’re looking to transform,” McNansky said. That means moving away from the cheese singles’ use in sandwiches and promoting them as a portable snacking option. McNansky declined to share specifics on Kraft Singles’ performance but said Kraft Singles saw an increase in shopper penetration since this new positioning took place. “Across all our brands, our biggest metric is really around the customer lifetime value,” she said.
In July, Kraft Mac & Cheese released its newest flavors, jalapeño and ranch. According to the company, these were chosen to cater to its young audiences who like to experiment with more intense flavors, with spice being a main draw. Last year, for example, Heinz launched a line of spicy ketchups.
Then there are ingredient-focused brands like Philadelphia, which McNansky said leans on versatility. “We’re now starting to see our consumers bake with it,” she said. So in September, Kraft Heinz launched Philadelphia Cream Cheese frosting, and the brand as a whole is venturing more into desserts.
Kraft Heinz is also partnering with Gen Z-loved brands for marketing.
In January, Kraft Heinz began rolling out ”Taco Bell at Home” meal kits in partnership with the fast food chain. As part of the launch, a campaign to promote the limited-edition “Taco Bell SOS Kits” was launched, targeting college students craving Taco Bell but can’t make it to a restaurant.
With Taco Bell meal kits, McNansky said the branded partnership is an example of a product delivering specifically on Gen Z’s preferences. “The big thing we have going with this generation, in particular, is a growing interest in global flavors,” she said. As such, Kraft Heinz’s brands have leaned heavily into Asian and Latin American cuisines, particularly Mexican. Additionally, “we’ve taken a great brand that is super on trend, and we’re bringing it in to disrupt the aisle as well,” McNansky said. “It’s also a shareable experience with friends.”
In other cases, Kraft Heinz is trying to change the perception of its brands with cheeky marketing campaigns. In 2021, Kraft Heinz launched a tagline for its Velveeta brand called “La Dolve Velveeta,” a play on the Italian phrase ‘la dolce vita.’ As part of this campaign, Velveeta launched a gold hair dye, turning to actress Julia Fox to promote the stunt item. Though Velveeta announced the gold hair dye on April Fools’ Day, it was a real product that people could actually buy. Similarly, Velveeta launched a nail polish in 2022, which McNansky said “quickly sold out online.”
For large food conglomerates, the trick is adapting to the upcoming customer demographics while maintaining what has worked over the years.
CPG consultant Nate Rosen said legacy portfolio companies like Kraft Heinz are looking to play on different angles beyond just leaning on nostalgia. “Tapping into other popular IP, like Taco Bell, helps in bringing in Gen Z,” Rosen said.
However, Rosen continued, unlike emerging food startups, established food brands aren’t as nimble when it comes to product collaborations and marketing campaigns. “But the nice thing about being a staple in grocery stores is that it’s everywhere, and that’s a huge advantage.”
As Gen Z moves from college and begins to have families and shop for their own households, McNansky said Kraft Heinz is trying to grow with them. That means placing a lot of emphasis on to-go and portable packaging, as well as convenient formats like frozen meals. “Now that Gen Z is moving over into adulthood and are becoming more of the day-to-day purchasers,” McNansky said. “We expect those needs to be amplified.”