NEW YORK Kraft Foods has revealed plans to launch its new breakfast product, Bagel-Fuls, to help boost sales in its cheese business.
Kraft, which also sells Maxwell House coffee and Oscar Mayer meats, has decided to focus on rebuilding new products for the cheese department, according to the Wall Street Journal. Recently, Kraft has been battling price increases, and cheaper private label products in the cheese industry, and is turning to their new product for a boost.
Bagel-Fuls was displayed at the Consumer Analyst Group of New York Conference on Tuesday, and are expect to be launched nationally in April. Bagel-Fuls are frozen bagels containing Philadelphia cream cheese already spread along the bagel.
Kraft is slowly regaining a presence in the cheese market, with such products as LiveActive cottage chesses, and according to the Journal, Kraft expects that the frozen bagel line will help enter the frozen breakfast market. Another aim is to involve the company in a new trend of producing quick meals designed for the busy consumer.
According to Chitra Ebeneze, the director of marketing for Bagel-Ful, “Consumers are not spending a lot of time cooking these days. Breakfast is one meal occasion they really struggle with.”
Even though hopes are high for the new product, Credit Suisse analyst Robert Moskow has his doubts. “Some believe that Kraft will enjoy a snap-back in cheese profits this year as costs in the dairy complex trend down,” he said. “The problem is that private label tends to adjust retail price points faster than Kraft. As a result, we think Kraft runs the risk of losing further market share to private label in a declining dairy cost environment.”