Stouffer’s Takes on Kraft Heinz with New Shelf-Stable Mac and Cheese
Stouffer’s, known for its frozen dinners and entrees, is venturing into the shelf-stable mac and cheese market with the launch of Stouffer’s Supreme. This move marks a significant shift for the Nestle brand, which has been a mainstay in the freezer aisle for 70 years. The company is betting big on its brand recognition and the fact that shoppers are increasingly looking for convenient, tasty, and familiar meal options. While Kraft Heinz currently dominates the $2.9 billion shelf-stable mac and cheese category, Stouffer’s is hoping to capture a share of the market with its two new flavors: Cheddar Cheese and Three Cheese, offering a "rich, supremely cheesy taste". This could shake up the market and present a new challenge to Kraft Heinz.
Key Takeaways:
- Stouffer’s is launching Stouffer’s Supreme, a new line of shelf-stable mac and cheese, to compete with Kraft Heinz in the $2.9 billion category.
- The new line features two flavors: Cheddar Cheese and Three Cheese.
- Stouffer’s is targeting the two-thirds of shoppers who buy both its frozen mac and cheese and boxed versions from its competitors.
- The company is confident that its strong brand recognition and "rich, supremely cheesy taste" will appeal to shoppers.
- Stouffer’s plans to continue innovating in the freezer aisle with a "full suite" of new products this fall.
A New Challenger in the Mac and Cheese Market
Stouffer’s, a brand synonymous with frozen meals for generations, is making a bold move by entering the shelf-stable mac and cheese market. This decision is fueled by the company’s assessment of consumer behavior and its confidence in its brand strength. The average American consumes mac and cheese 22 times per year, and while frozen varieties are popular, boxed mac and cheese accounts for 70% of these occasions. This significant market share, which Kraft Heinz dominates, represents a $1.7 billion business for the company, making it an attractive proposition for Nestle.
Stouffer’s is entering the market with a differentiated value proposition. The company is emphasizing the "rich, supremely cheesy taste" of its Stouffer’s Supreme line, positioning it as a premium alternative to existing options. The cheddar cheese flavor is described as similar to its frozen counterpart, while the three-cheese option, featuring cheddar, gouda, and parmesan, is "a cousin" to the frozen versions. The company is further emphasizing its "10% more cheese sauce" compared to Kraft’s Velveeta brand, appealing to those seeking a "rich and cheesy" experience.
Kraft Heinz Isn’t Sitting Still
While Stouffer’s is entering a crowded market with a strong contender in Kraft Heinz, the food giant isn’t taking its leadership position for granted. Kraft Heinz has been actively innovating to retain its market share, introducing new variety packs and flavors to cater to changing consumer preferences. The company faces challenges, including the impact of SNAP benefits changes on its mac and cheese sales, but its willingness to invest in new products demonstrates its commitment to remaining a dominant player in the category.
A Bold Move For Stouffer’s
While Stouffer’s is venturing into a new territory, the brand is not abandoning its roots in the frozen aisle. The company plans to bolster its presence there with a "full suite" of new products launching this fall. This dual approach shows the company’s commitment to adapting to changing consumer preferences while simultaneously exploring new growth avenues. Only time will tell whether Stouffer’s can crack the shelf-stable mac and cheese market, but its bold move indicates a willingness to compete in a market that is both challenging and lucrative. The future of the mac and cheese aisle appears to be more competitive than ever before, which directly translates into more options and choices for consumers.
