Kraft faces competition from Stouffer's with new boxed mac and cheese offering.
- Stouffer's Supreme, a new line of boxed mac and cheese from Nestle, is hitting the market.
- The $2.9 billion mac and cheese market is mostly controlled by Kraft Heinz.
- Nestle believes that the brand's renown and commitment to cheese sauce can be leveraged to increase sales in the frozen food industry.
Stouffer's is leaving the freezer aisle and introducing its new shelf-stable mac and cheese.
Nestle Meals Division president Tom Moe stated that with its strong brand recognition, Stouffer's sees an opportunity to capitalize on the two-thirds of shoppers who buy both its frozen mac and cheese and boxed versions from its rivals.
According to Moe, the average American consumer consumes mac and cheese 22 times a year, making it the second most frequently consumed food after pizza. Out of these 22 occasions, 70% of the mac and cheese is obtained from a box. The shelf-stable mac and cheese market is worth $2.9 billion, with Kraft leading the way as the dominant brand.
Kraft Heinz's Chief Financial Officer Andre Maciel stated at the Barclays Global Consumer Staples Conference on Sept. 5 that mac and cheese is a roughly $1.7 billion business for the company. However, changes to SNAP food assistance benefits negatively impacted Kraft's mac and cheese sales in the fourth quarter. In response, the food giant quickly introduced new mac and cheese variety packs and flavors, demonstrating its willingness to invest to maintain its leadership in the category.
Nestle believes that Stouffer's has earned enough trust from shoppers to warrant a try.
If you're craving a rich, supremely cheesy taste, then you'll come to us, Moe said.
Stouffer's Supreme will offer two boxed mac and cheese variations: a classic cheddar and a three-cheese version made with cheddar, gouda, and parmesan. Moe stated that the cheddar is a "sibling, not an identical twin" of its frozen mac and cheese, while the three-cheese option is a "cousin."
Stouffer's claims that its cheese sauce has 10% more cheese compared to Kraft's Velveeta.
Nestle's "full suite" of new products will be hitting the freezer aisle this fall, in addition to Stouffer's foray into the pantry aisles.
Business News
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