February 21, 2024


Rendering of the Heinz Remix dispenser

Source: Kraft Heinz

For more than 125 years, Heinz bottles have touted “57 varieties,” a number entirely invented by its founder with little practical application.

Now, kraft heinz Hope to give customers three times more condiment options with a new customizable sauce dispenser built just for foodservice customers.

The machine, called the Heinz Remix, is the latest example of Kraft Heinz’s foray into the out-of-home market to boost sales. The company expanded distribution at airports, launched a deluxe version of mayonnaise for chefs and redesigned Lunchables to be served in schools. Sales at Kraft Heinz’s North American foodservice unit rose more than 25% in the first quarter.

The company will unveil Remix at the National Restaurant Association Show, which opens Saturday in Chicago. It plans to trial the vending machines in restaurants as soon as the end of this year.

“We’re very, very aware that go-out and foodservice give us the opportunity to test, learn, understand and build on trends earlier than ever before,” said Peter Hall, head of Kraft Heinz’s North American operations. U.S. food service sector.

Hall said the company is still working on the exact business model for Heinz Remix. It is also looking at how to use vending machines for drive-thru orders, he said. But the machine requires more time and effort than throwing a handful of ketchup packets into a takeout bag, which could pose a challenge for speed-conscious drive-thru lanes.

To create a custom sauce, consumers will use a touchscreen to select a base of ketchup, ranch, 57 or BBQ sauce; add “enhancers” including jalapeno, smoked jalapeño, buffalo and mango; and set three one of the intensity levels.

Alan Kleinerman, head of disruption at Kraft Heinz, told CNBC that his favorite combination is ranch dressing, lots of jalapeños and a dash of smoked jalapeños. But one dark horse — mango ketchup — has made the biggest splash at Kraft Heinz offices recently, he said.

With the help of Microsoft, device engineers, and IoT developers, the company developed Heinz Remix in just six months.

“We’ve always focused on making innovation the number one growth driver for our business,” Kleinerman said. “To do that, we knew we needed to operate differently than we have in the past, thinking bigger and more consumer-centric. “

The owner of Oscar Mayer is in the midst of a turnaround after its former management’s focus on cutting costs led to a decline in North American sales. Its troubles came to a head in 2019, as it disclosed a $16.6 billion writedown on iconic brands such as Cool Whip and Kraft, as well as an SEC investigation into its accounting.

In the most recent quarter, Kraft Heinz reported a 6.2 percent rise in North American sales as higher prices offset shrinking demand from inflation-weary shoppers. Shares of Kraft Heinz have fallen 3 percent this year, giving them a market value of $48.5 billion.shares S&P 500 Index It has risen 7% over the same period.

taste new products

Although Heinz Remix is ​​new, due to its Coca Cola Freestyle machine introduced almost 15 years ago.

Today, Coca-Cola’s touchscreen beverage vending machines are in more than 50,000 locations, including McDonald’s Restaurant, asset management company cinema and Target shop. Customers’ favorite custom orders come from freestyle machine Inspired the beverage giant to launch new bottled beverages such as Sprite Cherry and Coke with Cherry and Vanilla.

“They demonstrated the power of iteration and innovation as they received feedback,” Kleinerman said of Coca-Cola.

But he added that consumers and food service operators are the main inspirations for Heinz Remix.

Kleinerman told CNBC: “I think it’s easy to draw parallels, but this is an opportunity that stems from that initial insight and our desire to really change and build on the experience consumers experience today.”

According to Kleinerman, customers have been asking Kraft Heinz for spicier or sweet and savory condiments, and restaurateurs have told the company they want more variety.

Like Coca-Cola, Kraft Heinz plans to use data from its sauce dispensers to decide which new products to introduce in grocery stores. Hopefully Heinz Remix will be able to introduce new products that customers actually want, not products they say they want but never buy.

In recent years, Heinz has released a variety of condiments inspired by its most popular sauces, including “mayochup,” “kranch” and “buffaranch.”