Overview of How Kraft Lost Its Mac and Cheese Crown
This episode of The Journal (The Wall Street Journal & Spotify Studios) traces the rise, dominance and recent decline of Kraft Mac & Cheese. It explains how changing consumer preferences, new competitors, and corporate decisions after the Kraft-Heinz merger eroded Kraft’s market position — and what the company is doing now to try to win customers back.
Key takeaways
- Kraft Mac & Cheese was an iconic, dominant pantry staple since its 1937 launch; it became synonymous with convenience and childhood nostalgia.
- Consumer tastes shifted toward cleaner labels, “better-for-you” options and adult-oriented flavors, opening the door for rivals (e.g., Annie’s, Goodles) and private-label alternatives.
- The 2015 Kraft-Heinz merger (led by private equity firm 3G) produced short-term profit gains via aggressive cost-cutting but eroded institutional knowledge and long-term brand investment.
- Competitors like Goodles targeted younger, higher-income, adult consumers with premium, protein-forward, and flavor-forward positioning — and used celebrity marketing (Gal Gadot) to scale quickly.
- Kraft responded with a “year of mac and cheese” push (new flavors, larger boxes, label changes), a planned $60M+ marketing investment, and product plans (higher-protein and premium lines) — but market share fell from roughly 45% to 39% of U.S. mac-and-cheese dollars (2022→2025).
- The decline is framed as mismanagement and missed signals more than product quality: employees warned of threats, but churn and shifting priorities blunted action.
Timeline and important facts
Origins and dominance
- 1937: Kraft Mac & Cheese introduced; sold for 19 cents a box and became a popular affordable comfort food through the Depression and WWII.
- Decades: Heavy kid-focused marketing (cartoon tie-ins) cemented nostalgic appeal.
Disruption and corporate decisions
- 2015: Kraft merged with Heinz; 3G Capital’s cost-cutting approach led to plant closures, layoffs and loss of internal capabilities.
- 2019: Kraft Heinz took a ~$17 billion asset write-down amid weaker-than-expected performance and accounting issues.
- 2020: Pandemic revived demand for nostalgic staples; Kraft reported big online sales of mac and cheese.
- 2021: Goodles launched, positioning as a premium, better-for-you alternative; used bold flavors and celebrity endorsement.
- 2022–2025: Kraft’s mac & cheese share of category dollars dropped from ~45% to ~39%.
- 2025: Kraft Heinz declared “the year of mac and cheese,” launched new flavors and packaging claims; later announced plans to split the company into two firms.
Competitors and market shifts
- Annie’s: positioned as an organic/clean-label alt appealing to health-conscious parents.
- Goodles: launched by a former Kraft employee; focused on adult consumers, higher protein, unique flavors (Cacio e Pepe, etc.), priced above Kraft and leveraged Gal Gadot as a brand ambassador.
- Private-label/store brands and ramen: consumers are trading down or trying alternative convenient foods (cheaper store brands, trendy ramen), fragmenting the category.
- Consumer trends: demand for cleaner ingredient lists, protein fortification, adult flavor profiles, and premium convenience.
Where Kraft went wrong
- Overreliance on nostalgia and legacy brand strength; slow to adapt product positioning as consumer priorities shifted.
- Corporate cost-cutting (post-merger) sacrificed R&D, marketing muscle and institutional knowledge — limiting responsiveness.
- Organizational churn and shifting priorities prevented internal warnings from employees and retailers from being addressed quickly.
- Underestimated upstart competitors who modernized product and branding for younger, higher-spend consumers.
Kraft’s current responses
- Spending plan: more than $60 million to revive the brand in the current year.
- Product & packaging changes: new flavors (limited-edition and bold varieties), larger value boxes, clearer label claims (no artificial flavors/preservatives/dyes).
- Product pipeline: rolling out higher-protein, affordable versions and a premium line with bolder flavors and upscale cheeses.
- Corporate restructuring: announced split into two companies (part of a larger strategy to refocus brands).
Notable quotes & moments
- “It was the modern Stone Age family” — example of Kraft’s long history of kid-focused marketing.
- Former Kraft employees and internal taste tests found Goodles’ “Chetty Mac” quite close to Kraft’s nostalgic flavor — signaling product parity.
- The episode frames the decline as “a story of mismanagement and executives who missed signals and opportunities.”
Taste-test highlight
- Blind comparison by the host: Kraft and Goodles tasted “remarkably similar,” with Kraft’s pasta silkier and Goodles’ pasta slightly earthier — reinforcing that newer brands can match Kraft’s nostalgic taste while offering different ingredient and positioning advantages.
Actionable lessons (for brands and managers)
- Don’t rely solely on legacy brand equity; actively monitor shifting consumer preferences and act early.
- Preserve R&D, marketing and institutional expertise when pursuing cost efficiencies.
- Listen to in-market employees and retail partners — they often flag threats sooner.
- Innovate on both product (cleaner labels, protein, adult flavors) and marketing (target new demos, use modern ambassadors).
- Be prepared for agile upstarts to capture niche segments; incumbents must balance affordability with premium and better-for-you options.
Bottom line
Kraft Mac & Cheese remains iconic and sizable, but its long-term dominance was eroded by changing consumer tastes and managerial choices after the Kraft-Heinz merger. Rivals that combined modern branding, cleaner/healthier positioning and adult-oriented flavors have taken meaningful share. Kraft is investing to fight back, but reversing the decline will require sustained product innovation and organizational focus.