Kraft Heinz (KHC) , which owns popular brands such as Kool-Aid, Jell-O, and Oscar Mayer, is embracing a growing consumer trend that is starting to impact the sales of major food companies.
Many consumers across the country have become more health-conscious about the food and beverages they consume, a trend that began to blossom after the start of the Covid pandemic.
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A survey by the International Food Information Council last year found that 79% of Americans consider whether a food product is processed when deciding to purchase it.
Related: Kellogg sounds alarm on unexpected shift in customer behavior
Also, 63% of Americans avoid processed foods, while more than half follow a vegan, vegetarian, or plant-based diet to be healthier.
As more consumers focus on health, synthetic dyes such as Blue 1, Red 40, and Yellow 6, which are commonly found in processed foods, have recently faced scrutiny on social media for being linked to health issues such as cancer and hyperactivity in children, despite being approved by the U.S. Food and Drug Administration.
Kraft Heinz will no longer use a controversial ingredient in new products.
Image source: Shutterstock
Kraft Heinz makes an unexpected move
Amid these concerns, Kraft Heinz revealed in a new press release that it will no longer launch new products in the U.S. that contain artificial colors.
While Kraft Heinz claims that about 90% of its products don’t contain artificial colors, it said it is committed to removing these ingredients from all of its U.S. products “before the end of 2027.”
Kraft Heinz also said it will be “reinventing new colors and shades where matching natural replacements are not available.”
“As a food company with a 150+ year heritage, we are continuously evolving our recipes, products, and portfolio to deliver superiority to consumers and customers,” said North America President Pedro Navio in the release. “The vast majority of our products use natural or no colors, and we’ve been on a journey to reduce our use of FD&C colors across the remainder of our portfolio.”
Related: PepsiCo CEO addresses major customer concerns amid low sales
The move from Kraft Heinz comes after its net sales in the U.S. decreased by 7% year-over-year during the first quarter of 2025.
The decision also comes after U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. announced in April his plans to ban artificial dyes from all U.S. food products by the end of this year.
“For too long, some food producers have been feeding Americans petroleum-based chemicals without their knowledge or consent,” said Kennedy in an April press release. “These poisonous compounds offer no nutritional benefit and pose real, measurable dangers to our children’s health and development. That era is coming to an end.”
Major food companies see lower sales as consumers focus on health
The massive shift towards healthier foods has recently impacted the sales of major food companies.
During an earnings call in February, PepsiCo CEO Ramon Laguarta said there has been a “higher level of awareness” among American consumers about health and wellness, which is impacting sales.
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“We’re seeing more conversation in social media about health and wellness, in general, and obviously, that’s impacting consumption of food and consumption of beverages,” said Laguarta.
The company also recently announced a commitment to phasing out artificial colors from several of its products.
In May, Kellogg CEO Gary Pilnick even warned investors that the company’s cereal brands faced lower sales as consumers shifted to newer cereal brands that focus more on health and nutrition.
During an earnings call on May 6, Pilnick said he doesn’t believe the trend will die down anytime soon.
“In our category, what we’re also seeing is some of our consumers are also willing to pay more,” said Pilnick. “It’s an interest in health and nutrition. I think that’s going to continue. I think this is simply the continuation of a trend that we saw coming that at some point started to accelerate.”
Related: Sam’s Club makes big change to products as customers switch gears
