Revitalizing Kraft's Natural Cheese: Lactalis's $3.2 Billion Transformation
Source: The DairyNews
After acquiring Kraft Heinz’s natural cheese business for $3.2 billion in 2021, Lactalis USA embarked on a strategic overhaul to rejuvenate the brand. Despite the initial decline of the iconic products, including Kraft Natural Cheese, Cracker Barrel, Breakstone’s cottage cheese, and Knudsen sour cream and cheese, Lactalis saw potential for innovation and growth.
Ken Padgett, Marketing Director for Kraft Natural Cheese, emphasized the deliberate pace of the integration, focusing on meaningful market actions rather than hasty changes. The strategy involved deeply analyzing the acquired products to enhance their market accessibility, availability, and brand loyalty. The team investigated how consumers perceived and used the products, the competitive landscape, and potential areas for expansion.
Leveraging Lactalis’s 90-year legacy in dairy, which includes expertise from brands like Parmalat, Président brie, and Stonyfield yogurt, the company explored new product possibilities. This included insights on optimal cheese blending techniques, cutting methods, and the science of achieving the desired effects in cheese products.
This meticulous approach bore fruit in March when Kraft Natural Cheese launched Signature Shreds, its first new product line post-acquisition. This line features three blends—Cheddar, Mexican, and Mozzarella—each incorporating a specially developed whole-milk mozzarella designed by Lactalis. This new formulation allows the cheese to melt similarly to restaurant-quality cheese while maintaining its flavor. The shreds are also wider than traditional shreds, enhancing their premium appearance and texture.
This revitalization of Kraft's natural cheese lineup exemplifies how Lactalis is not only preserving but enriching a beloved American brand through thoughtful innovation and strategic market adaptation.
Leveraging Lactalis’s 90-year legacy in dairy, which includes expertise from brands like Parmalat, Président brie, and Stonyfield yogurt, the company explored new product possibilities. This included insights on optimal cheese blending techniques, cutting methods, and the science of achieving the desired effects in cheese products.
This meticulous approach bore fruit in March when Kraft Natural Cheese launched Signature Shreds, its first new product line post-acquisition. This line features three blends—Cheddar, Mexican, and Mozzarella—each incorporating a specially developed whole-milk mozzarella designed by Lactalis. This new formulation allows the cheese to melt similarly to restaurant-quality cheese while maintaining its flavor. The shreds are also wider than traditional shreds, enhancing their premium appearance and texture.
This revitalization of Kraft's natural cheese lineup exemplifies how Lactalis is not only preserving but enriching a beloved American brand through thoughtful innovation and strategic market adaptation.
