Key Points:
- Kraft Heinz is launching its first plant-based dessert with Jell-O Oat Milk Chocolate Pudding.
- The snack is aimed at consumers allergic to dairy, lactose intolerant or just avoiding foods made with animal-based ingredients.
- Kraft Heinz has expanded its presence in the plant-based space, largely through its partnership with food tech company NotCo. The companies have made plant-based versions of mac & cheese, mayonnaise and Oscar Mayer hot dogs.
Insight:
Kraft Heinz says it’s identified plant-based desserts as a growing segment in need of a better, more prominent offering.
The food giant noted more than 30% of Americans suffer from lactose intolerance, and milk allergies affect nearly two million children each year. Although the multi-billion dollar plant-based desserts category is seeing double-digit growth, current products, Kraft Heinz said, are limited and fall short on taste and texture.
“As our fans’ diets and preferences change, we’re evolving our portfolio alongside them,” Lauren Gumbiner, associate director of marketing desserts at Kraft Heinz, said in a statement. “Our chocolate pudding is a timeless classic, and now, thanks to our lactose-free and vegan oat milk version, we’re excited to give more families the opportunity to enjoy it.\”
While sales of the chocolate oat-based pudding are unlikely to overtake the traditional version of the more than 125-year-old Jell-O brand, it helps keep consumers who are avoiding dairy due to health concerns or personal choice from turning to another brand.
Kraft Heinz said it selected oat milk because of its creamy consistency and mild flavor, allowing Jell-O to recreate its signature taste and texture.
The oat-based food market was valued globally at $5.2 billion in 2023, and it is expected to post a compound annual growth rate of 7% through 2030, according to Grand View Research.
Oat milk has become one of the most popular ingredients for plant-based food and beverages because of consumer perceptions around taste and sustainability.
Kraft Heinz is not the first major food company to turn to oats to make a plant-based alternative of a popular brand.
Unilever’s Ben & Jerry’s in 2023 switched from almonds to oats as the primary ingredient in its plant-based offerings, while that same year Hershey introduced confections under its namesake and Reese’s brands.