Chicago-based Kraft Heinz is one of the biggest retailers of packaged food worldwide. On November 12, the brand announced that it had removed Lunchables meal options from US School Lunch Programs. According to the company's mail to Food Dive, the meals met a low demand in schools.
The company had hoped to expand its distribution and sales in the educational market. Every year, the US Department of Agriculture aims to provide free or low-cost meals to children from low-income families through the School Lunch Program. Meanwhile, the company is trying to revive Lunchables and has introduced new flavors, like the Spicy Nachos.
Kraft Heinz explains its decision to pull out Lunchables from US School lunch programs
Kraft Heinz modified two Lunchables, Turkey and Cheddar Cracker Stackers and Extra Cheesy Pizza, as part of the National School Lunch Program 2023. Kraft Heinz stated that the two products were made healthier with higher amounts of protein and reduced amounts of sodium and saturated fats.
Advocacy groups and nutritionists were unimpressed by the launch. Some argued that it was a "highly questionable move" and could mislead families into assuming the versions sold in supermarkets were healthier.
After a year, the company has removed the Lunchables from the program due to a sluggish demand. The company said in a statement,
“While many school administrators were excited to have these options, the demand did not meet our targets."
They added,
"This happens occasionally across our broad portfolio, especially as we explore new sales channels. Lunchables products are not available in schools this year and we hope to revisit at a future date."
The withdrawal comes after the Consumers Report noted that the meals have relatively high sodium, cadmium, and lead levels and questioned if they should be served to young children. However, Kraft Heinz told Reuters that the removal of the meals is not linked to those reports. Kraft Heinz reiterated on Tuesday that the meals are "safe" and made with "high-quality ingredients.". They added,
"Nothing is more important to us than the quality and safety of our food."
Building a reputation can be long and tricky as the brand has primary caregivers and children as the primary target groups. Kraft Heinz recognizes the impact of negative publicity on brand image. Carlos Abrams Rivera, CEO of the company, addressed this concern at the company's sales meeting last month. He emphasized,
“We recognize the moment right now is being more challenged because of the one challenge in this particular quarter, but we believe this is a brand that will continue to grow and continue to be a hugely important part of our portfolio."
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Kraft Heinz has withdrawn Lunchables from the School Lunch Program for children from low-income families. The company hoped to expand its business and revive its brand through this initiative. While it is unclear if the company will join the Lunch Program with other products, it has reemphasized the safety of its products for children and families.
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