PITTSBURGH — Perhaps the H.J. Heinz Co. just needed a good hot dog to serve its new mustard on.
The Pittsburgh ketchup maker Thursday morning announced it’s launching a “new, better-tasting yellow mustard than it’s ever offered before at retailers nationwide.”
Heinz already dominates the North American ketchup market, so the strategy seems to be to hitch its mustard’s wagon to the company’s star product and pick up new sales.
The launch, which is being backed by an advertising campaign, was forecast last month when a planned merger of Heinz and Kraft Foods Group, based in Northfield, Ill., was announced.
Heinz CEO Bernardo Hees, who is slated to become CEO of the new Kraft Heinz Co. if the merger goes through as expected, told analysts in a conference call then that the innovation pipeline for Heinz already included things like mustard as a line extension.
He said the retail push followed the Pittsburgh company’s established position in providing mustard for food-service clients, such as restaurants, hospitals and schools.
He noted that Heinz had also launched Sriracha- and jalapeno-flavored ketchup, as well as hot sauces in Europe.
Finding ways to grow sales in the mature packaged food industry has been a challenge for many established food companies.
Meanwhile, Kraft’s many brands include Oscar Mayer hot dogs and Grey Poupon mustard.
Heinz’s announcement said it had developed a new yellow mustard recipe for the new retail push.
“We know that people don’t really think about yellow mustard, so we needed to inspire them with a bold creative idea to shake things up a bit,” said Jessica Ryan, associate director of marketing for Heinz Brands at Heinz North America, in Thursday morning’s announcement.
“Our new campaign focuses on the idea that Heinz ketchup has been with the wrong mustard for years, but finally found a mustard that lives up to its high standards of taste.”
The merger with Kraft requires shareholder and regulatory approval. Officials have said it could come in the second half of the year.
