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Kraft-Heinz aims to maximise its hold on the savoury snacks market

20 November 2020

Kraft-Heinz’s recent deal to conduct research on fermented ingredients with APC Microbiome allows the company to take up new, novel flavours and formulations that are likely to appeal to experimental consumers. 

GlobalData believes that it is a good move for the company to outsource parts of its business model in this way, as it allows Kraft-Heinz to focus on improving its supply chain, which was disrupted by Covid-19, as well as work on direct-to-consumer (DTC) channels. 

Commenting on the move, Jim Toy, consumer analyst at GlobalData, said: “This move by Kraft-Heinz means less time will be wasted on internally led and potentially dead-end research. Furthermore, by focusing on new innovations and sales strategies, such as clean-label ingredient formulations and DTC channels, the company will receive a much-needed competitive boost.”

With so many countries finding themselves back under lockdown conditions, consumers are bulk-buying savoury snacks and condiments in the same way as essential items such as water and bread. Notably, GlobalData’s forecasts reveal that the global savoury snacks market is expected to rise from $156.3bn in 2020 to $183.8bn by 2023. 

As a result of many foodservice chains shutting their doors, Kraft-Heinz is now looking to sell more products through business-to-business and DTC channels, as opposed to business-to-consumer. Although large divisions, such as healthcare and public services, will still require mass orders, the travel and tourism and restaurant sectors will be left out from Kraft-Heinz’s focus. New products will be focused towards at-home consumption. 

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