Kraft Heinz Company (NASDAQ: KHC), the consumer packaged food and beverage giant, and Oprah Winfrey, the media magnate, announced a joint venture this week.
The joint venture formed by the two partied was named Mealtime Stories, LLC, which aimed to make nutritious food more extensively available. In the beginning, both companies will develop a new line for real nutritious food products, and will focus on the ready-to-eat refrigerated dishes, which will be offered in multiple categories. According to the announcement, 10% of the profits would be donated to charities to eradicate hunger. Kraft promised to give more details on this later this year.
In the joint venture, Kraft Heinz could take advantage of the stature and marketing prowess of Oprah Winfrey. In 2015, she bought 10% stake in Weight Watchers International Inc. after the shares of the company increased. Oprah Winfrey gave a boost to the company.
The joint venture was come up with amid the growing awareness of nutritional value of food products. More and more companies emphasized on the importance of using organic ingredients and minimal processing in packaged food. The joint venture by both companies follows the current trends and should help in increasing profitability.
Kraft Heinz planned to focus on shifting advertising spend from non-working to working media before announcing the joint venture with Oprah Winfrey. The company also planned to reduce inefficient trade promotion spending.