Kraft Heinz has blown the ink dry on a deal to be the official condiment of the National Football League (NFL), the food and beverage colossus announced this morning.
The five-year partnership—dollar value not revealed—will give some 20 brands from the CPG giant’s portfolio high visibility in football venues and open the door for a range of marketing initiatives, including limited-edition products, retail displays, and local advertising connected to the NFL’s 32 teams.
“Foundationally, it’s just a natural fit—our brands are staples when people are watching sports,” Kraft Heinz CMO Todd Kaplan told ADWEEK. “[We’re] pairing one of the world’s most recognizable food portfolios with the most-watched sports league in the U.S.”
But the most notable feature of the deal may be its timing.
Prior to February, plans called for Kraft Heinz to spin itself off into two publicly traded companies—a “Global Taste Elevation Co.” consisting of marquee brands like Kraft Mac & Cheese, Philadelphia cream cheese, and Heinz condiments; and a “North American Grocery Co.” that would have included Oscar Mayer hot dogs, bacon, and cold cuts, as well as Kraft Singles, and Lunchables.
“This move will unleash the power of our brands and unlock the potential of our business,” CEO Carlos Abrams-Rivera said at the time.
But by the close of Q4 last month, Kraft Heinz’s net sales had dropped by 3.4% while gross profits for the fiscal year had fallen by 7.3%. As part of the company’s 2026 outlook, new CEO Steve Cahillane announced that the spinoff plans were on hold.
“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan,” said Cahillane, who’d moved into the corner office just 41 days earlier. “As a result, we believe it is prudent to pause work related to the separation.”
Of the $600 million the company has earmarked to invest in its quest for better earnings, a large portion will go to marketing, with the NFL partnership as its first major component.
The Chicago-based company has struggled in the decade since Berkshire Hathaway partnered with 3G Capital to merge Kraft and Heinz into a $60 billion conglomerate. In February of 2019, it stunned Wall Street by taking a $15.4 billion impairment charge, leading to a $12.6 billion loss for the fourth quarter. At the time, Kraft Heinz also announced that it was under investigation by the SEC. That inquiry resulted in formal charges of “improper expense management practices” in 2021, which Kraft Heinz paid $62 million to settle.
But Kraft Heinz’s NFL deal addresses troubles that predate 2019, and perhaps the merger itself. Though many of its brands are household names around the world, their fame hasn’t eased increasingly aggressive competition from private-label brands.
As Berkshire Hathaway founder Warren Buffet explained in a 2019 interview with CNBC, Costco’s house brand Kirkland Signature, only 24 years old, was already doing 50% more in sales than a Kraft Heinz portfolio that was four times older, distributed globally, and promoted by “a fortune” in advertising.
“So house brands—private label—is getting stronger,” Buffet said. “It’s bigger, and it’s going to keep getting bigger.”
Partnering with the NFL and its leagues may not be enough to end shoppers’ love affair with private labels, but Kaplan predicts it will fire up the Kraft Heinz portfolio in other ways.
One is simply visibility. “You’ll start to see our brands whether you’re online, engaging with content around football, or at official events—everything from tailgating outside the stadium or concessions in the stadium,” Kaplan said.
Another is what Kaplan calls habituation. If a fan tries Heinz Gravy or Lea & Perrins Worcestershire sauce at a game, for example, they may be more likely to buy it for their tables at home.
“It connects full circle,” he said. “Wherever you are in food service, that drives habituation and trial ultimately pulls back through to retail.”
The partnership will make its debut on April 23 at the NFL Draft, to be held in Pittsburgh. The location is no coincidence. The consummate middle-American football town, Pittsburgh was also where a young Henry J. Heinz introduced a condiment he called “Catsup” in 1876.
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