Extra-cheesy pizza… with a Capri Sun. A watchdog group reported that Lunchables sold in K-12 cafeterias contain high levels of sodium, along with lead, cadmium, and chemicals known as phthalates. Consumer Reports is petitioning regulators to remove the Kraft Foods-owned compartmentalized meals, which were introduced in 30M students’ lunch lines last year.
Off shelf: Cafeteria Lunchables are different from regular retail ones. Kraft developed two school versions of its packaged meals that meet USDA standards. It says the turkey-and-cheddar and extra-cheesy-pizza packs have less saturated fat and more protein and whole grains than grocery-store versions.
Divided: Critics argue the reformulated meals are still too processed for the lunch line, but pro-Lunchables parents say kids like having familiar options.
Pizza sauce and fries count as veggies… according to US school-nutrition regulators. The push for healthier school lunches has ramped up over the past decade, with former first lady Michelle Obama campaigning for rules that cut calories and saturated fats and boosted whole grains, fruits, and “veggies.” Brands don’t want to leave the lunch line, and Kraft isn’t the only one adapting to meet the higher standards. Domino’s has a “Smart Slice” pizza option (think: whole-grain crust, light mozzarella) that’s served in 900+ school districts.
Gen Alpha: Kraft says schools are a $25B growth opportunity. Read: a virtually free marketing opp to reach 30M kids who will grow up to be spending adults.
Customer acquisition starts early… Adults have shown they have a soft spot for the products they grew up with. Sales of J.M. Smucker’s Uncrustables have soared in recent years (swiftly approaching $1B/year) as millennials snatch up the circular PB&Js, and General Mills brought back Dunkaroos in 2020 for nostalgic kidults. At the same time, companies spend billions on advertising to kids, especially on Alphabet.