In May 2022, Kraft Heinz announced the launch of its Remix sauce dispenser for foodservice spaces which will allow consumers to create over 200 possible combinations of condiments. This is a relatively new concept in condiments but leans into similar models by beverage companies to expand the brand’s presence in foodservice, opening opportunities for more packaged food brands to grow and partner with foodservice operators.

This concept has numerous advantages not only for Kraft Heinz but also for foodservice operators and their customers. Beverage brands with similar concepts – such as Coca-Cola’s freestyle machine, which launched in 2009 and is now available in over 50,000 locations – demonstrate the potential for Kraft Heinz and other packaged food companies wanting to increase revenue and consumer engagement in foodservice spaces.

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Kraft Heinz’s Remix sauce dispenser concept is well-positioned for demographics visiting quick-service fast-food restaurants (QSRs), which will be a key channel for the model.

GlobalData’s 2023 consumer survey reveals that Gen Z and Millennials are the generations that visit QSRs most frequently. * Younger consumers are likely to find the Remix dispenser appealing as it allows them to try out various new flavour combinations in their condiment choices. According to GlobalData’s 2022 Q2 consumer survey, Gen Z and Millennials have a slightly higher preference for trying out new flavours in the context of dining at fast-food/casual restaurants. ** The sauce dispensers can therefore enhance the customer experience at foodservice outlets, bringing more variety and choice to meals.

Some foodservice operators who already offer own-brand specialist sauces, such as Nando’s in the UK or McDonald’s, may have reservations about introducing a third-party brand to their ranges. However, the dispensers are a way of increasing footfall in on-premise spaces, which has been dwindling since the pandemic, as it offers consumers an interactive and novel experience which can’t be replicated at home.

While the dispenser is a form of value creation in foodservice, Kraft Heinz also hopes to improve its strategy in retail spaces long-term. Partnering with Microsoft, Kraft Heinz uses Internet of Things technology to analyse data from the dispenser machines to understand areas of demand for new products to launch in retail formats. This will enable the company to go to market with new product formulations, already with some knowledge of their potential demand.

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Kraft Heinz’s tech and foodservice partnerships provide a useful lesson for packaged food brands to increase their engagement with consumers in new channels, much like beverage companies such as Coca-Cola and PepsiCo have been doing for years. Condiments, which are typically a secondary consideration for consumers placing orders in foodservice channels, are made a main attraction or feature through the Remix dispenser.

* GlobalData’s 2023 Q1 global consumer survey

** GlobalData’s 2022 Q4 global consumer survey