Dive Brief:
- Philadelphia cream cheese has launched its plant-based spread in three flavors nationwide, the company announced Tuesday. The spreads are made from a base of water, coconut oil, modified potato starch and faba bean protein.
- The launch comes after the cream cheese brand regionally launched a plant-based variation of the spread back in December, the first major brand in the U.S. to do so.
- Now, the Pittsburgh & Chicago-based company is capitalizing on the growing plant-based dairy space with two new flavors of strawberry and onion and chive.
Dive Insight:
Although traditional dairy products have sustained a significant market share, plant-based alternatives have gained traction in recent years.
The U.S. market for plant-based dairy alternatives grew 6% from 2020 to 2021, and 11% from 2021 to 2022, according to a report from McKinsey.
The plant-based cream cheese space has had a slow start, but with Philadelphia cracking into the space with two new flavors, Kraft Heinz sees some potential.
“To be the first mainstream cream cheese brand launching a plant-based spread option with widespread accessibility across the U.S. is an important milestone for Philadelphia and our fans,” said Keenan White, senior brand manager, Philadelphia at the Kraft Heinz Company in the release.
In December, the Kraft Heinz brand did a regional launch, in the Southeast U.S. as a test market for the plant-based version of its popular spread. The launch was a success, with 70% of purchasers saying the product exceeded their expectations, the release said.
Already, Philadelphia ranks as the fourth top-performing plant-based cream cheese in the Southeast and sixth in the nation despite only being available in one region, the release said.