Kraft Heinz Plans To Offer Lunchables To School Cafeterias, Sees Multi-Billion Opportunity: Report

The Kraft Heinz Company KHC reportedly plans to offer Lunchables to school cafeterias across the U.S. this fall as a part of its marketing strategy to introduce its brands to a new generation of consumers.

The company recognized schools as a critical way to boost its food-service unit and increase supermarket sales, The Wall Street Journal reported, citing a statement from Miguel Patricio, Kraft Heinz’s chief executive.  

The report added that in a quarterly report in May, the company assessed education food service as an underpenetrated sector with a $25 billion potential, the report noted. 

Also Read: Kraft Heinz Expects Long-Term Organic Sales Growth Of 2%-3%

However, the latest move has been under the scanner owing to its potential nutritional issues from some child-nutrition advocates, school-meal officials, and others who see the products as a hazard for being prepackaged and processed.

Until recently, Kraft Heinz has treated its food-service division like a second-class citizen, the report cited Carlos Abrams-Rivera, the company’s head of North America—who will become the Chief Executive next year. 

However, the company is focusing on changing that, installing some of its best people in its food-service division, Patricio added, which is noted by The Wall Street Journal.

Kraft Heinz launched new versions of its turkey-and-cheese and pizza Lunchables earlier this year, re-engineered to concede with federal guidelines, the report added. 

Price Action: KHC shares are trading higher by 0.03% to $33.67 premarket on the last check Monday.