Kraft targets men, millennials

The pot pie kit comes with pouches of Velveeta cheese, biscuit topping, vegetables and seasoning. The cook sautes chicken until done, then adds milk, vegetables and seasoning, and cooks for another minute. The chicken mixture goes into a baking dish and gets topped with the cheese. Finally, the biscuit mix, to which more milk has been added, goes on the very top. The Velveeta Cheesy Casserole is ready in about 18 minutes at 425 degrees.

Then there's Oscar Mayer's pulled pork that's sold in a clear plastic tub. It's precooked, shredded and seasoned. Kraft is selling the meat without the sauce so cooks can choose their own and add as much as desired.

These and other new products are part of Kraft Foods Group's efforts to attract new customers: millennials and men. The recession disproportionately affected men, who are now doing about 40 percent of the cooking, according to the U.S. Bureau of Labor Statistics.

Northfield-based Kraft has found that both groups are cooking more and looking for flexible recipes, ways to customize their food and have fun in the kitchen. So Kraft is updating its stable of mature brands in ways that appeal to them.

Millennials, age 18 to early 30s, are beginning to cook and don't want to do things like their parents did. So Kraft is offering more products that require some effort. Just not too much effort.

A Kraft study showed younger men cooking even more than their older counterparts — 42 percent of millennial men do all the cooking in the household, while 76 percent do at least some cooking. They also like to experiment with their dishes.

"Now they'll talk about cooking like guys would talk about a hobby 20 years ago," said Barry Calpino, vice president of breakthrough innovation at Kraft. "It's an adventure, it's an experience, it's fun, they talk about 'their signature.'"

Men feel they have more latitude as cooks, according to Robin Ross, associate director of culinary at Kraft. "Women want to please their families and for everyone to like what they make,'' she said. Men, she said, tend not to feel the same pressure. "Men have more of a free hand."

Kraft Foods, a $19 billion a year packaged North American grocery business, was spun off in October from Deerfield-based Mondelez International. Kraft CEO Tony Vernon promised mid-single-digit operating income growth rates for the company, and acknowledged it needs to develop new, more modern products for its brands and increase advertising support to make customers aware of them.

While Vernon hasn't released targets for his ad budget, Kraft has lagged competitors, investing the equivalent of 3 percent of sales toward advertising and marketing, compared with 4.5 percent of sales at competitors, according to the company.

During the company's most recent earnings call, Vernon underscored double-digit sales growth for Lunchables, Velveeta, and MiO, a liquid concentrate used to flavor water, citing new products and subsequent advertising. However, he acknowledged work to do with Jell-O, to capitalize on "yogurt's explosive growth," and with Planters "to re-establish category leadership and profitable growth."

On Friday, Kraft shares closed at $45.53, up 2 percent from the Oct. 1 spinoff.

Simply being a smaller company, Calpino said, means Kraft can lavish attention on brands like Velveeta, which hadn't seen much attention in decades.

"Five or six years ago, I'm not sure we'd do innovation reviews" on Velveeta, Calpino said. "It wasn't even on the list."

Phil Lempert, a supermarket industry expert, said the millennial generation poses challenges for big food companies, which are not known for rapid change. Companies like Kraft, he said, have to "keep it fresh, keep it changing." Young people, he said, "never want to wake up and have the same meal in an entire lifetime.'' He also said that unlike their predecessors, millennials are more interested in "ethnic foods and adventure than ever before."

Lempert said a lot of millennials' tastes are "being driven by food trucks,'' serving products like tacos with a few different meats with a level of high quality and bold flavors. In turn, that has raised millennials' expectations on everything from a restaurant meal to a box of Kraft Macaroni and Cheese.

Lynn Dornblaser, director of innovation and insight at Mintel International, said the fact that Kraft offers some of its new products like easy-to-use, three-pack sauce packets should be a hit because millennials love to cook, but hate to clean.

"Cleaning is a barrier to cooking from scratch," she said. It's the same for male cooks. Even making a white sauce for pasta, Dornblaser said, "you've got dishes to wash, measuring to do, steps to follow."

So products like Kraft's new Velveeta casseroles, pulled pork, Fresh Take cheese and bread crumb mixtures and Velveeta Toppers cheese sauce pouches "offer the ability for consumer to be a little creative with what they're cooking but without too much bother," she said.

Last year, Velveeta launched Cheesy Skillets dinner kits, the brand's biggest launch in more than 20 years. It's a stark departure for a brand best known for Shells & Cheese and its ability to melt over nachos. Consumers saute beef, add cheese sauce from a pouch, cook the pasta, mix, and add hamburger toppings such as shredded lettuce and diced tomato.