Kraft Heinz debuts 3 spicy ketchups, part of innovation push to drive $2B in sales

Watch out Frank's Red Hot Sauce (MKC) — Kraft Heinz (KHC) is out with a new spicy ketchup lineup, Heinz Hot Varieties, as part of an overarching goal for its North American business to hit $2 billion in incremental net sales by 2027 with new products.

The lineup, which is Heinz 57 Sauces' first innovation in 10 years, includes three new ketchup offerings: chipotle, jalapeño, and, the hottest of the lineup, habanero. That's in addition to a new meat sauce dubbed Heinz Hot 57 Sauce. "Personalized sauces, ethnic flavors, different textures, are really the name of the game," Pedro Navio, a Kraft Heinz executive told Yahoo Finance.

The key is to ensure Kraft Heinz's "products match consumer needs," Navio said. 

Based on research, "millennials are not only interested in in the hot...they're way more into the heat sources' strategy and that's what basically drove this," he said. 

Now available at stores, the 14-ounce bottles of spicy ketchups will retail for $3.99, while the the Heinz Hot 57 Sauce will be $5.59. Navio said "when you look at the price per ounce, it is not that different from from our traditional version."

Navio said the spicy ketchups were first tested on a "combination of different profiles" including at quick-service restaurants (QSRS) and at "smaller players" prior to scaling into retail permanently. 

He added, for the company to be "agile at scale" it has to be able to "come up with innovations faster, testing them on smaller batches, and preparing the manufacturing footprint to respond to those asks in a faster way."

Other innovations that have come out so far include its collaboration with singer-songwriter Ed for ‘the ultimate’ hot sauce under a new brand called Tingly Ted’s. Another new brand is HomeBake 425°/30. The brand, largely a play to reach busy families looking for a quick meal, offers pre-made meals.

Year-to-date, shares are down 4.5%. On May 4, 2023, the company is set to hold its annual meeting of stockholders.

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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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