Kraft Heinz Counts on New Product Development for Lunchables Sales Growth After Lead Reports

In an update from Kraft Heinz Company, U.S. investment bank TD Cowen said it would take some time for Lunchables sales to stabilize after negative and false concerns about lead contamination. "Parents who are worried about the impact on their children are dwelling on those fears," the U.S. investment bank said.

Kraft Heinz will reverse sales by first implementing growth plans coinciding with the "critical" back-to-school period, and then through a series of product innovations.

Kraft Heinz Lunchables Innovation

A FoodNavigator spokesperson said: "We are activating partnerships and promoting best-selling Lunchables with sweepstakes and on-pack branding."

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He added: "Our latest partnership generated double-digit growth for the products featured." In October, we will also launch a new innovation in the category.

Kraft Heinz claimed the contamination occurred in the spring. However, it maintained that the lead levels found by the interest groups were below safety standards "indicating minimal risks."

Lunchables does not contain lead. "Lead can be found at low levels in common foods such as grains, fruits, and vegetables because it is often present in the soil and water in which these crops are grown," the spokesperson said.

Lead allegations in Lunchables

The mere presence of small amounts of lead does not equate to a hazard or a less healthy food. For comparison, spinach contains more lead than the amount reported in Lunchables.

Kraft Heinz has said that a dedicated snack platform is not on the agenda. Kellanova and Pringles, the snack maker that Mars acquired for $36 billion.Last week, Kellogg's rebranding was announced, with the company reportedly focusing on expanding its organic strategy while also embracing Kellanova's strategic footprint and scale in emerging markets.

Kraft Heinz Company also said it has no acquisition plans.