Heinz goes it alone with mustard
Until now, Heinz mustard has primarily been sold through the company's food-service business.
Until now, Heinz mustard has primarily been sold through the company's food-service business.
Heinz has dumped a long-standing link with French’s to provide the two essentials for the American hot dog – tomato ketchup and yellow mustard.
Heinz has launched an advertising campaign that plays on the idea that its ketchup is breaking up with French’s yellow mustard in favour of a new relationship with Heinz’s own yellow mustard.
“It’s a new companionship and we’re going to pair them as much as possible,” Heinz North America president Eduardo Luz says.
Until now, Heinz mustard has primarily been sold through the company’s food-service business. In making a retail push, Heinz is taking on French’s, which is owned by UK-based Reckitt Benckiser Group.
French’s has a 60% share of the US market while Heinz has less than 1%.
Heinz tipped its hand on its mustard plans last month, when 3G Capital and Warren Buffett’s Berkshire Hathaway announced a deal to buy Kraft Foods Group and combine it with Heinz.
Heinz listed yellow mustard as one of its top three “Big Bold Bets” in product innovation for 2015 in a presentation released in conjunction with the news of the Kraft merger.
Kraft owns the Grey Poupon brand, which is the second-biggest selling mustard in the US.
The new company will be the third-largest food and beverage producer in North America, with sales of about $US28 billion.