Latest news with #Lunchables
CNBC
an hour ago
- Business
- CNBC
Protein has become America's latest obsession. Companies like General Mills and PepsiCo are capitalizing on it
High-protein products are taking over the grocery aisle as brands like General Mills and PepsiCo are capitalizing on the trend. In fiscal 2024, General Mills generated more than $100 million in retail sales from its protein cereal lines, including Nature Valley Protein, Cheerios Protein and Ghost Protein. PepsiCo has protein product launches planned for its fiscal fourth quarter of 2025 and fiscal first quarter of 2026, according to its a recent earnings call. PepsiCo CEO Ramon Laguarta said on CNBC's "Squawk on the Street" last week that he believes the protein category will continue to grow. A 2025 Bain & Company survey found that 44% of U.S. respondents said they want to increase their protein intake, up from 34% from the same period in 2024. "Companies are going to try to differentiate themselves by creating a message that appeals to the customer and says, you know we have been offering this wonderful product for you. And what you didn't know is we've already been full of protein," said Stephen Zagor, adjunct assistant professor of business, specializing in food business at Columbia University. Kraft Heinz, for example, has fine-tuned the messaging around its existing product lines. "Now we're going to be highlighting the amount of protein that families can get from real food rather than from powders," said Kraft Heinz CEO Carlos Abrams-Rivera at the Deutsche Bank Consumer Conference last month. The Oscar Mayer parent company said it is rolling out new packaging for its cold cuts business. Its Lunchables brand is also now emphasizing that its products each have 12 grams of protein. But there is also a wave of new players jumping on the protein trend. David Protein Bars, created by the founders of RxBar and low-carb dessert brand Raize, was launched in September, and the company said it's on track to generate over $100 million in revenue during its first year in business. There's also been an increase in more nontraditional protein-heavy products, like ice cream. Protein Pints was founded in 2023 by Michael Meadow and Paul Reiss. The company said it recorded less than $100,000 in revenue in 2024 but is on track for more than $20 million in 2025. "We just surpassed over 10 units per store per week at Target for cookie dough, and it is surpassing our wildest expectations," said Reiss. "For context, 10 units per week is over double the category average. And keep in mind, our product is higher priced by almost $2 than the average ice cream." The conversation surrounding protein proliferates amongst fitness influencers on social media, as well as celebrities like Khloe Kardashian and Patrick Schwarzenegger, who have started their own protein food companies called Khloud and Mosh, respectively. Developments in medical weight loss drugs are also helping to fuel the trend. Consumer research from food trend firm Mattson shows that people on anti-obesity medications are seeking out products that will help increase their protein intake. The National Frozen & Refrigerated Foods Association found 46% of GLP-1 drug users reported high-protein content makes them more likely to purchase a frozen food product. But there are risks to competing in the protein category. Zagor said when companies alter the composition of a product to be higher protein, consumers will benchmark the taste, texture and price to what they know — and may be turned off by the change. "Once you start adding in claims on a food item that [say] we're now higher protein, it becomes a little bit of a different evaluation set for the customer," said Zagor. Meadows said this gives Protein Pints an advantage in the space because they are building the brand on the premise of being a high-protein product, rather than having to rebrand a product consumers already know. PepsiCo dismissed this concern when asked about this risk of diluting brand equity in its fiscal second quarter earnings call. "We've been very surprised, positively surprised, how consumers are seeing our brands expanding into those more functional spaces with credibility," said Laguarta. Some companies are backing their investments in protein with commissioned consumer research. Chobani, for example, said it found 85% of Americans want to increase their protein intake in 2025. A study paid for by beef stick company Chomps found that protein snacks are growing at three times the rate of the overall snacking industry, accounting for $24 billion in revenue in 2024. The mainstream adoption of high-protein diets is being felt firsthand from players like Barilla, which first rolled out its Protein+ pasta line back in 2005. This year, the company has expanded distribution of the product into BJ's and Walmart-owned Sam's Club. "It is definitely a line that we are excited about and heavily investing in," said Barilla Innovation Lead Cammie Slikker. "What we've seen in the last three years is demand like we haven't seen before." Watch the video to learn more about why so many companies are investing in the protein category.
Mint
2 days ago
- Business
- Mint
Kraft Heinz split: Cold cheeses are a burden for its hot sauces
When schools returned to in-person learning in the fall of 2021 after the pandemic, parents scrambled to find Lunchables to put in their children's backpacks. Today, the meal kit of processed meats and cheese may be off the menu amid the desire for healthier food, but its manufacturer, Kraft Heinz, is firmly on it. The company is exploring spinning off the division that makes Lunchables, alongside Kraft cheese and Oscar Mayer hot dogs from its faster-growing arm that makes ketchup. A split could deliver modest value for shareholders. The biggest upside, though, would come from tempting bidders to pay up for each of the individual companies. To recap: Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital acquired J.H. Heinz for $28 billion, including debt, in 2013. Two years later, they merged it with Kraft Foods, the US grocery business that had been spun out of what would become Mondelez International (more on that later). Also Read: Face the M&A truth: Mergers are glitter but grit is gold But Kraft Heinz has grappled with changing consumer tastes and, most recently, the rise of GLP-1 weight-loss drugs. As sales have come under pressure, its shares have lost 70% since 2017. Little wonder then that the company said in May that it was 'evaluating potential strategic transactions" to boost its stock price. The logic for a split is straightforward. Kraft Heinz's sauces, spreads and condiments business, which generates annual sales of about $11 billion, is growing faster than processed meat and cheese. People are seeking more flavour in their food, particularly if their appetites shrink—either because they are getting older or taking obesity treatments. Freed from their more sluggish sibling, brands like Grey Poupon mustard and Lea & Perrins sauce could command a higher valuation multiple. There is a precedent here—ironically from Mondelez. After Kraft was spun off, Mondelez retained the sexier international, confectionary and snacking segments. It has delivered a total return of over 200% since October 2012, almost double the S&P 500 Packaged Foods Index, and trades at a forward enterprise value-to-ebitda multiple of about 15. Kraft Heinz's slower-growing grocery arm, which could have sales of about $14.5 billion, would be valued less generously. It would still be highly cash generative, though, so it could appeal to an investor looking for a steady dividend payer. Analysts at T.D. Cowen estimate that the sauces, spreads and condiments division could be worth $29.5 billion and the grocery arm about $25 billion. Together, that's only just ahead of Kraft Heinz's enterprise value of $51 billion. Also Read: To split up or not? Conglomerates should never go by off-the-shelf answers Given that much of the upside might be swallowed by the higher costs of operating both companies, why bother with a breakup? Because both companies might prove tantalizing to a bidder. This is exactly what happened in the case of Kellogg. The company spun off its North American cereals business as W.K. Kellogg Company in late 2023. The racier snack-foods arm, maker of Cheez-It and Pringles, was renamed Kellanova. Almost a year ago, Mars paid $36 billion, including debt, for Kellanova, a 44% premium to the share price in the preceding 30 days. Last week, privately held Ferrero International, maker of Nutella, agreed to buy W.K. Kellogg, whose brands include Froot Loops and Corn Flakes, for an enterprise value of $3.1 billion. The $23-a-share cash offer equated to a 40% premium to the share price in the preceding 30 days. Kraft Heinz's sauces, spreads and condiments arm would fit in McCormick's portfolio, an analyst at Bloomberg Intelligence told me, although there may be competition concerns. And now that Unilever is offloading its ice-cream business, might it be interested in bulking up in dressings? Also Read: The Godrej split holds valuable lessons for family businesses As for the grocery business, it could appeal to a private equity buyer drawn to its cash flow. One complication is that Kraft Heinz is expected to have net debt of just over $18 billion at the end of this year, and much of that is likely to be allocated to the food maker. This might make it harder for a financial buyer to load up on borrowings. Still, if this hurdle could be overcome, there could be scope to add other low-growth but cash-generative food businesses to build scale. If both of Kraft Heinz's component parts are as successful in selling themselves as Kellogg's, this would certainly be a tasty treat for investors. Since news of Kraft Heinz potentially doing the splits broke at the weekend, there has been much discussion of de-consolidation in the consumer sector. But like Lunchables leaving school bags, this looks more like a prelude to a corporate disappearing act. ©Bloomberg The author is a Bloomberg Opinion columnist covering consumer goods and the retail industry.
Forbes
5 days ago
- Business
- Forbes
Kraft Heinz Evaluating Potential Spin-Off Of A Grocery Business
(Photo illustration by) Deal OverviewAccording to media publications on July 11, 2025, The Kraft Heinz Company (NASDAQ: KHC, $27.58, Market Capitalization: $32.64 billion), a leading global packaged food company, is contemplating spinning-off its grocery business while retaining its high growth condiments and sauces segment. As per market estimates, the spin-off entity would command a valuation $20 billion, on favorable turnaround of business prospects. The Kraft Heinz Price Performance Spin-Off Details and Top 5 Shareholders Post-separation, RemainCo will retain Kraft Heinz's faster-growing and more consumer-aligned brands, focusing on flavor-forward and health conscious products. This includes iconic names like Heinz ketchup, Grey Poupon mustard, and a portfolio of hot sauces, dressings, and condiments. RemainCo will prioritise innovation, reformulation (such as removing artificial dyes), and expansion into global markets where demand for sauces and spreads is rising. SpinCo (Grocery segment) will focus on Kraft Heinz's traditional packaged food brands, which have long been staples in American households but have experienced slower growth in recent years. This includes products like Kraft cheese, Oscar Mayer meats, Maxwell House coffee, Jell-O, Planters nuts, Lunchables, and Capri Sun. These offerings are typically shelf-stable, processed, and widely distributed through grocery channels. SpinCo will aim to stabilize and optimize these legacy brands, potentially through operational efficiencies and targeted marketing, while navigating shifting consumer preferences toward fresher and healthier options. Kraft Heinz was formed in July 2015 through a merger between Kraft Foods Group and H.J. Heinz Company. Berkshire Hathaway and 3G Capital led the deal to create a global packaged food giant. It combined Kraft's grocery staples with Heinz's condiments. Despite high hopes, the merger struggled due to shifting consumer preferences. The company has been actively reshaping its portfolio to align with evolving consumer preferences for healthier, less processed foods. Recent initiatives include removing artificial dyes from US products and divesting underperforming brands. In May 2025, Kraft Heinz announced a strategic review aimed at unlocking shareholder value, and Berkshire Hathaway relinquished its board seats, signaling potential structural changes. There is no official announcement about the separation as the company is undertaking a strategic review to explore various options. A formal announcement is expected to be made in the coming weeks. Deal Rationale Kraft Heinz's decision to spin-off its grocery business is a significant step toward improving focus and performance. The move reflects a broader effort to recalibrate the business around its most promising assets and future growth drivers. The new grocery entity will include many of Kraft Heinz's traditional staples, such as processed cheeses, lunch meats, boxed meals, and snack brands. Meanwhile, the RemainCo will focus on its premium condiments and sauces segment, which has demonstrated stronger growth, higher consumer engagement, and a broader global appeal. The separation allows each business to operate with strategies tailored to their distinct market dynamics, enabling the grocery unit to focus on cost efficiency and potential consolidation in the value segment, while the high-growth condiment division can prioritize global expansion and targeted capital investment. The spin-off also addresses operational inefficiencies that have plagued the company since its 2015 merger, which was driven by aggressive cost-cutting under 3G Capital's zero-based budgeting model. That approach ultimately failed to deliver sustainable results, resulting in a decline in the operating margin to 6.5% in FY24 from 14.4% in FY16. Reflecting this, the stock value fell 60% since the merger, erasing nearly $57 billion in market capitalization. The separation will enable RemainCo company to move forward in areas such as clean-label formulations, bold global flavors, and cross-border expansion, areas where consumer trends are clearly shifting. Financially, the move can potentially unlock significant value only if the business sees a meaningful turnaround, which could, as per market estimates, value the company at $20 billion. Combined, the two entities could surpass Kraft Heinz's current market capitalization of approximately $32 billion, offering investors clearer visibility of the performance and potential of each segment. Kraft Heinz's restructuring mirrors a broader industry shift, similar to Kellogg's 2023 split into Kellanova and WK Kellogg, which helped both companies grow independently. Since then, Kellanova's stock rose 43.7%, WK Kellogg gained 36.4%, while Kraft Heinz's shares dropped by 19.0% during the same period. Kraft Heinz has already demonstrated a willingness to pare down its portfolio through the divestment of non-core units, such as its Italian infant nutrition division, signalling that the potential spin-off is part of a larger recalibration of its brand ecosystem. With both Berkshire Hathaway stepping back from board involvement and 3G Capital having exited its stake by the end of 2023, it becomes easier for Kraft Heinz to take a bold step, such as a spin-off. Key Data Company DescriptionThe Kraft Heinz Company (Parent) The Kraft Heinz is a packaged food company, incorporated on July 2, 2015, following the merger of Kraft Foods Group, Inc. and the H.J. Heinz Company. With net sales of approximately $26.0 billion in FY24, Kraft Heinz operates across eight consumer driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. Kraft Heinz maintains a global footprint with operations segmented into North America, International Developed Markets, and Emerging Markets, supported by 70 manufacturing and processing facilities worldwide. The company features iconic product names such as Heinz ketchup, Grey Poupon mustard, and a portfolio of hot sauces, dressings, and condiments. Grocery Business (Spin-Off) The grocery business will house a significant portion of Kraft Heinz's traditional grocery business. This includes products like Kraft cheese, Oscar Mayer meats, Maxwell House coffee, Jell-O, Planters nuts, Lunchables, Capri Sun, and other staples. These offerings are typically shelf-stable, processed, and widely distributed through grocery channels. Organization Structure
Bloomberg
6 days ago
- Health
- Bloomberg
Is the Kraft Heinz Split the Prelude to a Disappearing Act?
When schools returned to in-person learning in fall 2021 after the pandemic, parents scrambled to find Lunchables to put in their children's backpacks. Today, the meal kit of processed meats and cheese may be off the menu amid the desire for healthier food, but its manufacturer, Kraft Heinz Co., is firmly on it.
Buzz Feed
09-07-2025
- General
- Buzz Feed
"McDonald's Should Be Embarrassed": 53 Infuriating Shrinkflation Photos That Prove We're All Getting Ripped Off
1. This has to be a joke, right? 2. I hate that this photo made me crave McDonald's. I guess I'd better order four large fries to get an actual large fry! 3. This is a disgrace. 4. Speaking of McDonald's, this is what their McChicken patty looks like now. 5. Oreos have completely gone downhill. 6. Childhood nostalgia is dead. 7. I guess I'm done with KFC. 8. Et tu, Popeye's? 9. To be fair to Taco Bell, I don't know that people really need that much soda, but still, this feels like a scam. 10. I swear this problem gets worse every year. 11. Oh, so they're just straight-up lying now. 12. They got Pringles, too. :( 13. LOOK WHAT THEY DID TO MY BOY!!!! 14. Pop Tarts are getting smaller, too! 15. They even got Swiss Cakes, my favorite childhood treat. 16. This is not the Happy Meal I remember. 17. More like "made with M&M." 18. Is this how big McDonald's burgers are now??? 19. This is a sad excuse for a popsicle. 20. Same with this one. 21. They're just trying to trick us at this point! 22. Because I love eating my candy in literally one small bite. 24. Not Five Guys, too! :((( u/ripndipp / Via 25. We must storm the Lunchables factory and locate all the missing protein!!! WE RIDE AT DAWN! Kraft-Heinz / u/ParaClaw / Via 26. No more candy in Lunchables. :( u/Swimming-Thing-9873 / Via 27. What a deal! Pay a dollar more for 3oz less product! u/RadioWhispers / Via 28. In a few years, there'll just be half a bar in a box. u/Twitchris / Via 29. Why make the box that big if the actual product is so much smaller? u/rdh_3000 / Via 30. How is this legal? SturmgeistX / Via 31. It SHOULD be illegal for this snack pack to come with *this* many crackers, IMO. u/DigitalSundialClock / Via 32. A 34% increase? In this economy? No thanks. u/Mellanderthist / Via 33. How are they even still calling this a $5 meal? u/casey_the_evil_snail / Via 34. How are you even supposed to fit an egg on this? u/brentis / Via 35. Share size? Yeah, this snack's gonna be sharing space in my stomach with a second pack. u/sukonetei / Via 36. I'm gonna start checking my deodorant after this, because I feel like it runs out unusually fast. u/I-I2O / Via 37. Full, my ass. u/RaphaTlr / Via 38. What is the one on the left, string cheese for ants? u/Adorable-Cookie-733 / Via 39. Ah, the ol' water-it-down, sell-it-for-more trick. u/Sim14CH / Via 40. Look on the bright side — with the economy the way it is, maybe you'll only be able to buy two or three presents. :( u/Denelo / Via 41. For the same price, of course. u/ageric / Via 42. Great, another product decrease with a price increase. u/urbanachiever1012 / Via 43. I'm no good at math, but that's gotta be at least a 1/4 decrease! u/Perfect_Tension_3611 / Via 44. I TRUSTED YOU, Oreos! u/ThatDerpiousGuy / Via 45. They totally did this bottle redesign to hide that it has less product, IMO. u/sockpenis / Via 46. Packaged foods just loveee to leave extra space. u/lt2362 / Via 47. When will the lies end? u/mikieballz / Via 48. Caught mid-shrinkflation! u/gotshmam / Via 49. Every year, it gets worse. :( u/Xxambersky89 / Via 50. They really thought we wouldn't notice! u/dspyk77 / Via 51. But we see all!!! u/ThrownOffAwy / Via 52. CONSTANT VIGILANCE! They'll hit you in the places you least expect. u/kjacmuse / Via 53. And forget what they took from us. u/deepscroll / Via
