Patrick Oconnell
Kraft Macaroni and Cheese, also known as Kraft Dinner, is a nonperishable packaged macaroni and cheese mix. It was introduced in 1937 in the US and Canada and has since become a popular comfort food, with over a million boxes sold every day. The brand is owned by Kraft Heinz, a Chicago-based company formed in 2015 through a merger between Kraft Foods Group, Inc. and Heinz, which is partially owned by Berkshire Hathaway.
| Characteristics | Values |
|---|---|
| Company Name | Kraft Heinz Company |
| Previous Name | Kraft Foods Group, Inc. |
| Headquarters | Chicago, Illinois |
| Year of Merger | 2, July 2015 |
| Merger Arranged By | Heinz Owners Berkshire Hathaway and 3G Capital |
| Stock Owned by Berkshire Hathaway | 26.9% |
| Number of Boxes Sold Daily | Over 1 million |
| Net Sales in First Quarter of 2022 | $6 billion |
| Other Brands | Capri Sun, Heinz, Oscar Mayer, Ore-Ida, and more |
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What You'll Learn
Kraft Mac & Cheese is owned by Kraft Heinz
Kraft Mac & Cheese has been a popular product for the company, with over a million boxes sold every day. The product was first introduced in 1937 as Kraft Dinner in Canada and the U.S. During World War II, the rationing of milk and dairy products, the increased reliance on meatless meals, and the rise in the number of women working outside the home created a large market for the convenient and hearty meal.
Over the years, Kraft has introduced various flavour variations and formulations, including Easy Mac, Homestyle Deluxe, and Kraft Macaroni and Cheese Crackers. In 2018, Kraft Heinz also introduced the KD Shaker, a plastic bottle of Kraft Mac and Cheese Dinner's powdered cheese, allowing consumers to use the cheese powder without worrying about unused pasta.
Despite its popularity, Kraft Mac & Cheese has faced some controversies. In 2024, a federal judge ruled that Kraft Heinz must face a proposed class action lawsuit alleging that the company defrauded consumers by claiming its Kraft Macaroni and Cheese contained no artificial preservatives when it allegedly contained a synthetic form of citric acid and sodium phosphates. Additionally, in 2023, a Miami federal judge dismissed a lawsuit accusing Kraft Heinz of understating the preparation time for its microwaveable Velveeta macaroni and cheese.
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Kraft Foods Group merged with Heinz in 2015
Kraft Foods Group, Inc. was an American food manufacturing and processing conglomerate that was headquartered in Chicago, Illinois. It became a part of Kraft Heinz on July 2, 2015, after it merged with H.J. Heinz Company. The merger was orchestrated by investment firms 3G Capital and Berkshire Hathaway, which is also the largest shareholder of Kraft Heinz, holding a 26.93% stake as of August 2024. The merger created one of the largest food and beverage companies in the world, with Kraft Heinz becoming the fifth-largest food and beverage company globally and the third-largest in North America. The new company, The Kraft Heinz Company (KHC), is co-headquartered in Chicago and Pittsburgh.
The merger was approved by the boards of both companies, along with shareholders and regulatory authorities, in early 2015. The Kraft Heinz Company became the world's fifth-largest food and beverage company and the third-largest in the United States. The merger was valued at around $45 billion, with the new company expected to have annual sales revenue of approximately $28 billion. The chairman of Heinz, Alex Behring, assumed chairmanship of the new company, while Kraft's chairman and CEO, John Cahill, became vice chairman.
The merger was expected to result in $1.5 billion in annual cost savings by the end of 2017, with cost synergies coming from higher economies of scale in the North American market. The combined company would also be able to refinance Heinz's high-yielding debt at a lower rate due to Kraft's better credit rating. Additionally, the merger provided an opportunity to sell Kraft's brands in international markets, leveraging Heinz's global footprint.
Kraft's major brands include Kraft Macaroni & Cheese, which has been America's original and favourite comfort food for 85 years. The brand has played an iconic role in people's lives, with over a million boxes sold every day.
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Kraft Heinz is based in Chicago and Pittsburgh
Kraft Macaroni and Cheese is owned by The Kraft Heinz Company, commonly known as Kraft Heinz. Kraft Heinz is a multinational food and beverage company with a rich history. It was formed by the merger of Kraft Foods Group, Inc. and the H.J. Heinz Company, which was completed on July 2, 2015. The merger created the world's fifth-largest food and beverage company and the third-largest in North America.
Kraft Heinz is co-headquartered in two cities in the United States: Chicago, Illinois, and Pittsburgh, Pennsylvania. In Chicago, the company's headquarters are located at the Aon Center, while in Pittsburgh, they are situated at PPG Place. Both cities serve as strategic hubs for the company's operations across various markets and its diverse portfolio of brands.
Chicago, often referred to as the "Windy City," is known for its vibrant business community and has a strong presence in the food and beverage industry. Being headquartered in Chicago provides Kraft Heinz with access to a talented workforce, logistical advantages, and proximity to key partners and suppliers. Pittsburgh, on the other hand, known for its steel industry and technological advancements, offers a stable business environment and a skilled talent pool.
By having co-headquarters in these two cities, Kraft Heinz can leverage the strengths of each location to support its global operations. The company also has additional offices and manufacturing facilities worldwide, including 30 manufacturing plants across the United States, further solidifying its presence in the food and beverage industry.
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Kraft Mac & Cheese is sold over a million times daily
Kraft Mac & Cheese, owned by Kraft Heinz, is a popular comfort food in the United States, with over a million boxes sold daily. Kraft Mac & Cheese has been a favourite meal for generations of American children and has played an iconic role in people's lives. The product's success can be attributed to its convenience, affordability, and ability to provide comfort and familiarity. During the Great Depression, Kraft introduced boxed macaroni and cheese, providing a hearty meal for families at a low cost.
The brand has evolved over the years, with a recent name change from "Kraft Macaroni and Cheese" to "Kraft Mac & Cheese" in June 2022, reflecting the way consumers refer to the product. The iconic blue box design has also been updated with a more prominent noodle smile and dripping liquid cheese.
Kraft Heinz has faced lawsuits over claims of artificial preservatives in its macaroni and cheese products and has been challenged by smaller brands offering "healthier" alternatives with more natural ingredients. However, Kraft Mac & Cheese remains a dominant player in the market, with a significant market share and a loyal fan base.
The company has responded to consumer demands by introducing organic versions, removing artificial colours, and collaborating with plant-based companies to create new variations. During the COVID-19 lockdown, sales of Kraft Mac & Cheese boomed, with many consuming it for breakfast. The product's popularity extends beyond the United States, particularly in Canada, where it is considered a staple food and holds iconic status.
Kraft Mac & Cheese's success and longevity can be attributed to its ability to adapt to changing consumer preferences, maintain its iconic status, and provide comfort and convenience to generations of consumers.
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Kraft Mac & Cheese was rebranded in 2022
Kraft Mac & Cheese, owned by The Kraft Heinz Company, was rebranded in 2022. The product has been America's original and favourite comfort food for 85 years, with over a million boxes sold daily. The rebrand included a name change from Kraft Macaroni & Cheese to Kraft Mac & Cheese, reflecting how consumers organically refer to the product. The new brand identity aimed to redefine Kraft Mac & Cheese as feel-good food for everyone.
The rebrand involved updating all aspects of the brand identity, including the name, logo, brand colours, typography, photography, iconography, and packaging. The packaging, for instance, will be changed to a single blue hue, highlighting the non-perishable item's noodle-smile iconography, redesigned with more dripping cheese.
The marketer's decision to modernise its legacy offerings and recognise shifting consumer tastes aligns with similar moves in the packaged food industry. The name change from "macaroni and cheese" to "mac cheese" or "mac & cheese" reflects how fans naturally talk about the brand.
The timing of the overhaul was considered apt, as more consumers sought comfort food during the pandemic. Looming recession fears and rising inflation could also make consumers opt for cheaper, shelf-stable goods. Kraft's parent company, Kraft Heinz, had to raise prices, which could impact consumer loyalty.
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Frequently asked questions
Kraft Macaroni and Cheese is owned by The Kraft Heinz Company. It was formed in 2015 when Kraft Foods Group, Inc. merged with Heinz.
In 2022, Kraft Macaroni and Cheese shortened its brand name to Kraft Mac & Cheese. The name change was made to reflect the way customers refer to the brand.
Berkshire Hathaway owns 26.9% of Kraft Heinz's stock.
