Kraft Heinz (Velveeta, Heinz ketchup, Oscar Mayer) announced this month that it will restructure the company by splitting it into two. One wing will focus on sauces and condiments, and the other on market products. However, according to analysts, this move may not be enough to reverse the consumer trend away from processed foods.
The increasingly powerful Make America Healthy Again” (MAHA) movement in the US points to artificial additives as the cause of chronic diseases such as obesity and diabetes.
This initiative, led by Health Secretary Robert F. Kennedy Jr., is putting giant food companies like Kraft Heinz in a difficult position with new regulations from the federal government and states like California. The company says it has revamped more than 1,000 recipes in recent years, reduced sugar content, and committed to eliminating synthetic dyes. However, consumers still perceive the brand as “unhealthy and artificial.” Former employees report that, for example, the idea of replacing high-fructose corn syrup in Heinz ketchup with cane sugar was rejected due to cost.Competition is rapidly increasing. While natural ingredient sauce brands like Rao’s Homemade are expanding their market share, flagship products like Kraft macaroni and cheese are experiencing a decline. Kraft Heinz shares, which have seen declining organic sales for the past seven quarters, have lost 14% of their value since the beginning of the year.
According to experts, Kraft Heinz’s main deficiency is innovation. High prices, the effects of GLP-1 appetite suppressants, and the consumer shift towards natural products are making the company’s future even more uncertain.
