Kraft Heinz gobbles up Primal Kitchen

Kraft Heinz acquires paleo brands

If you like Primal Kitchen’s avocado oil mayo, you should know that there will soon be a new boss in the kitchen.

Food behemoth Kraft Heinz — famous for classic brands like Kraft Mac and Cheese, Heinz Ketchup, Grey Poupon and Jell-O — has agreed to purchase the Primal Kitchen line of primal and paleo-friendly products for $200 million.

Food Dive: Kraft Heinz buys paleo brand Primal Kitchen for $200M

What does this mean if you are a loyal customer? Probably not much. The conventional consumer products companies remain relevant and grow by acquiring emerging brands with loyal followings. These are often “better for you” brands that have gained traction among customers demanding healthier products with clean ingredients. Food Dive contributor Jessi Devenyns writes:

Acquiring this paleo condiment and snack line is Kraft Heinz’s newest step into the better-for-you space, as it works to keep pace with other big companies. Other consumer packaged goods companies have seen success by adding products to their portfolios that have the health halo that customers are demanding. In the last year, PepsiCo bought Health Warrior for an undisclosed amount, Keurig Dr Pepper purchased Core for $525 million and Coca-Cola acquired Topo Chico for $220 million.

Kraft Heinz is continuing to struggle to bring in revenue. The company’s shares are down 34% since January. This $200 million expense could be a Hail Mary toss in an effort to turn around fortunes — much like Kellogg, which bought clean-label RXBAR for $600 million last year.

Given Kraft Heinz’s scale and power in the grocery segment, you may see broader distribution and slightly lower prices as Primal Kitchen is folded into the efficient manufacturing and distribution processes of the larger packaged goods company. Since Kraft-Heinz is, in part, buying Primal Kitchen’s health halo, it is unlikely to meaningfully diminish the quality of the product.

Regardless of who owns the recipe, Primal Kitchen’s mayo is a great way to avoid the ultra processed oils in most conventional mayonnaise brands. But there is an even better-tasting way: homemade mayonnaise! Or chipotle mayo! It’s a similar story for Primal Kitchen’s unsweetened ketchup — it has less than half the carbs of Heinz’s flagship brand. Convenient, but our homemade low-carb ketchup wins on taste!

CNBC: Kraft Heinz agrees to buy paleo mayo and dressing company Primal Kitchen

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6 comments

  1. Kenrick
    What happens when Heinz decides its cheaper and easier to use vegetable oils etc ...hmmm...

    Not sure I can think of a small company product subsumed by a global corporation that has not ended with the watering down the originals product in terms of general quality or indgedients quality ...

    Sorry but to me this is a retrograde movement ...and it’s fine and dandy for the owners to make even more money - but is that really what it has come to...a money making excercsie not one of ethical and good quality products for health.

    Ric

  2. Eileen
    I agree with Kenrick. When Campbells bought a local favorite, they immediately moved the manufacturing out of my home town, and introduced a line of non-authentic products with the same name. Watch this. Your article did mention that homemade was better, and I certainly agree! I love making the Diet Doctor version of mayonnaise!
  3. Jennifer
    Yep. Make your own!!
  4. Kristin
    Quite frankly I really dislike the taste of Primal mayonnaise. It tastes very chemically, if that's a word. Perhaps it has so much vinegar in it. In any case I always make my own with lemon as the acid which, for me, makes it lighter and fresher tasting.
  5. Kallen
    be careful after you make your own mayonnaise.
    I made avocado mayonnaise with avocado oil I substituted the vinegar for lemon and lime juice freshly squeezed.
    i'm not too sure I like the taste but I refrigerated my mayo for 24 hours and used it on a sandwich it was so thick it would barely spread the next day I went to use it again and my refrigerator which was set at 37° froze it ; I was appaled.
    avocado oil when chilled becomes a solid quickly and I didn't take that into consideration when I made the mayo . I couldn't save it, but I did try. From now on I will use the Paleo mayonnaise from the store. It was an expensive lesson.
  6. Peggy M
    well, not sure but Phillip Morris purchased Kraft back in the early 2000's I believe. So to purchase Paleo from a cigeratte company seems to me to be a conflict of interests in the most basics of ways. a company that makes cigerattes, tooting health. Crazzzzzzy!!

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