Kraft Heinz Taking Philadelphia Plant-Based Spreads Nationwide
Following a limited test, Kraft Heinz is starting the nationwide rollout of its first Philadelphia brand plant-based spread in Original, Strawberry and Chive & Onion varieties.
The wide launch comes after Kraft Heinz conducted a regional test with Philadelphia’s Original plant-based spread at select retailers across the Southeast last year, where the product enjoyed a repeat purchase rate almost double the category average, the company said.
“To be the first mainstream cream cheese brand launching a plant-based spread option with widespread accessibility across the U.S. is an important milestone for Philadelphia and our fans,” said Keenan White, senior brand manager, Philadelphia in a press release. “Whether on their morning bagel, a veggie pairing for lunch or a delicious dip creation for snack time, we are proud to provide consumers with a delicious product that fits their lifestyle.
The coconut oil and potato starch-based product is now available for purchase at retailers such as Target and Shaw’s for $5.69 and $6.99 per 8 oz. tub, respectively.
According to the 2022 Plant-Based State of the Industry report by the Good Food Institute (GFI), plant-based cream cheese, sour cream and spreads raked in $129 million in sales last year, a 7% year-over-year increase.
Still, not every company has had success with plant-based cream cheese offerings. In February, CPG giant General Mills discontinued its animal-free cream cheese brand Bold Cultr just weeks after expanding its distribution and opening for online pre-orders nationwide. The brand was created in collaboration with Israeli dairy protein company Remilk and utilized precision fermentation technology to craft the whey protein used in its spreads. The first iteration had been made in partnership with alt-dairy creator Perfect Day.
Plant-based cream cheese is one of Perfect Day’s key use cases for its animal-free whey. In December, the company teamed up with Bel Brands, the maker of Laughing Cow, Boursin and Babybel, to launch Nurishh animal-free cream cheese. It also released an alt cream cheese via its CPG arm The Urgent Company under the now-shuttered Modern Kitchen brand.
Elsewhere, Bel Group, after seeing success with Nurishh, in April added California-based biotech startup Climax Foods to its list of alt-dairy cheese partners, developing new lines of nutrient-dense, sustainable alt-cheese products. As part of the agreement, Bel Group also acquired an equity stake in the company.
Philadelphia’s new spreads are just one part of Kraft Heinz’s larger effort to penetrate the plant-based market. In February, the company announced a new joint venture with TheNotCompany focused on developing and launching a new line of plant-based products such as NotMayo and NotCheese Slices.
Citing its Plant Based Regional Launch PFU study based on IRI data, Kraft Heinz claims Philadelphia ranked as the fourth top-performing plant-based cream cheese in the Southeast and sixth in the nation for sales despite having only been available in one region.
