• by Steve Ellwanger , February 16, 2023

Kraft Heinz has entered a multiyear partnership with IHOP to bring three varieties of the QSR chain’s coffee to retail outlets in ground and K-cup pod formats.

In addition to competing with Kraft Heinz’s own Maxwell House brand, the IHOP offering will go up against coffees from QSRs Dunkin’, McCafé and Starbucks on retail shelves.

“This is an example of how we’re taking new and unexpected approaches within some of our product categories,” Kraft Heinz CEO Miguel Patricio said during an earnings call yesterday.

Launching in April, Patricio said the IHOP-branded coffees will leverage “the scale and capabilities of our existing coffee business [by] partnering with a fan-favorite brand like IHOP to reach new consumers.”

The three IHOP coffee variations are Buttery Syrup, Chocolate Chocolate Chip and Signature Blend.

According to NielsenIQ, unit sales of ground coffee fell by 7.3% in the 52-week period ended Jan. 28 while single-serve pods declined 2.1%.

It marks the latest CPG collaboration for IHOP, which in December launched blueberry and syrup flavored IHOP Mini Pancake Cereal.

In announcing Q4 and full-year 2022 earnings, Kraft Heinz Co. posted a 9% increase in North America Zone sales driven largely by price increases.

“KHC has already announced 99% of the pricing needed for 2023” and “95% has been accepted and 90% has already been implemented–lessening worries about pricing pushback from key retail partners, in our view,” investment bank Barclays noted in a report today.

Kraft Heinz said that in the fourth quarter, its percentage of U.S. retail consumption was highest in households with annual income over $100,000 (32%) followed by 24% each for $60,000-$100,000 and $30,000-$60,000 households and 20% in the under-$30,000 group.