CHICAGO — New products and partnerships are driving expansion in the Kraft Heinz Co.’s away-from-home (AFH) segment, which led to 14% growth in the company’s foodservice business last year.

“We’ve been on a big transformation journey,” said Peter Hall, president of US AFH for Kraft Heinz. “We have a role to play in innovation, and that’s underpinned our performance. We’ve now set our 10-year plan, and our 10-year strategy is focused on how we deliver today and how we think about laying the groundwork for the future and the future growth of the overall business.”

Hall took on the US-based role in 2021 and had previously worked for the company as head of retail and foodservice in Canada and head of retail sales in the UK.

Innovations in the company’s AFH segment include the recent introduction of  the Tap Condiment Dispenser, the limited-time Sauce Drops featuring new flavors and the Heinz Remix customized sauce dispenser. Hall told Food Business News there has been “an overwhelming positive response” from consumers to the product introductions.

“Sauce Drops have been performing brilliantly — we have partnerships with restaurants all over the country,” he said. “It’s performed amazingly well and sold faster than we thought it would sell. Consumers are buying it and liking it.

“The feedback on something like Remix has been unbelievable,” he added. “We’ve already taken preorders for rollout of the machine. We’re delighted with the consumer feedback. Up to 60% of people are making their own bespoke sauces, so it’s resonating with consumers.”

Other innovations include a partnership with Crumbl Cookies, which used the company's Philadelphia Cream Cheese in a cheesecake product. 

“Disruptive innovation” is a major goal for Carlos Abrams-Rivera, Kraft Heinz CEO, who has stressed the introduction of products that are “truly new to the world.”

Kraft Heinz is reinventing its away-from-home equipment to support greater market penetration and drive brand experience.

| Photo: Kraft Heinz

Hall sees the AFH segment as “very important in the short term” to Kraft Heinz as a whole and as an “innovation testing ground” for consumers to try new flavors. That means developing products that are not just new “but putting our brands in unexpected places.”

“We know two-thirds more consumers are willing to try things away from home than they are at home, so that means we have a responsibility in away-from-home to work in the life cycle to get products tested in foodservice, restaurants, cafeterias, wherever it is,” he said. “I think we are constantly looking at how we can bring flavors into the market, not only the Kraft Heinz company but supporting the focus that we have on really being agile and moving much faster. We have a much broader overall responsibility to deliver for the organization more than we ever had.”

That responsibility will mean moving toward additional global brand innovation and channel expansion, Hall said, as well as continuing to deliver on the company’s plans and expand its business.

“And if you think about our business, you think about it as a restaurant business,” he said. “What we’re saying is we have to move from being a restaurant business to being an anywhere business. We need to continue to drive touch points with consumers in different places all over the country. How do we continue to grow in hospitals, schools and universities?”

He called Kraft Heinz “very optimistic” about the road ahead and the plans the company has in place despite a “very tough” past six months due in part to fewer restaurant visits as inflation-weary consumers pull back on spending.

Kraft Heinz’ AFH management is looking for new business in other verticals outside of restaurants and is seeing some progress, Hall said. It includes convenience stores, where consumers increasingly stop for quick snacks, hot food items and prepared foods.

“The big piece for me is we’re also seeing a step down into c-store,” Hall said. “We’re looking at how we continue to play and win in c-store so we’re positioned for the future as they continue to focus on food.”