But Kraft Heinz’s NFL deal addresses troubles that predate 2019, and perhaps the merger itself. Though many of its brands are household names around the world, their fame hasn’t eased increasingly aggressive competition from private-label brands.
As Berkshire Hathaway founder Warren Buffet explained in a 2019 interview with CNBC, Costco’s house brand Kirkland Signature, only 24 years old, was already doing 50% more in sales than a Kraft Heinz portfolio that was four times older, distributed globally, and promoted by “a fortune” in advertising.
“So house brands—private label—is getting stronger,” Buffet said. “It’s bigger, and it’s going to keep getting bigger.”
Partnering with the NFL and its leagues may not be enough to end shoppers’ love affair with private labels, but Kaplan predicts it will fire up the Kraft Heinz portfolio in other ways.
One is simply visibility. “You’ll start to see our brands whether you’re online, engaging with content around football, or at official events—everything from tailgating outside the stadium or concessions in the stadium,” Kaplan said.
Another is what Kaplan calls habituation. If a fan tries Heinz Gravy or Lea & Perrins Worcestershire sauce at a game, for example, they may be more likely to buy it for their tables at home.
“It connects full circle,” he said. “Wherever you are in food service, that drives habituation and trial ultimately pulls back through to retail.”
The partnership will make its debut on April 23 at the NFL Draft, to be held in Pittsburgh. The location is no coincidence. The consummate middle-American football town, Pittsburgh was also where a young Henry J. Heinz introduced a condiment he called “Catsup” in 1876.
