Did Packaging Play a Role in the Kraft Heinz Breakup?

When Kraft Foods Group Inc. and the H.J. Heinz Co. joined forces back in 2015, the goal was to achieve economies of scale and enable Kraft’s brand to piggy-back off of Heinz’s global reach. Ten years on, however, the company’s market capitalization is less than a third of what it was at its peak, and the merger is widely seen as a failure.

When your brand stands for something that consumers don’t want, that’s a problem. Just ask Budweiser.

At the same time, upstart brands are moving in on staid national brands with health-focused staple products and eye-catching packaging. Consider Goodles, a box macaroni and cheese brand launched in 2021 that has grown its share of the market from 0.6% in 2023 to 4% last year, as reported by The Wall Street Journal. Goodles boasts that its products have more protein and fiber than competitors like Kraft Mac & Cheese and Annies. Goodles also defines its competitors by their packaging (Kraft = Blue Box, Annies = Purple Box) and stands out on shelves with its own bold logo and brightly colored boxes.

Another reason being blamed for the Kraft Heinz split is consumers’ continuing support of private label brands. In a shift that started during the Great Recession, cost-conscious shoppers have continued their openness to opt for store brands over brand-name staples.

Studies have shown that consumers believe private label products are largely similar in quality to their name-brand counterparts, leaving only one thing to differentiate the two: packaging.

And yet, it can be hard to pick out the Heinz in a wall of ketchup at the grocery store.

Did Packaging Help Break Kraft Heinz Apart?