Podcast Summary: The Journal.

Episode: “How Kraft Lost Its Mac and Cheese Crown”

Date: February 2, 2026
Hosts: Ryan Knutson (A), Jessica Mendoza (A), Jesse Newman (B)
Produced by The Wall Street Journal & Spotify Studios

Episode Overview

This episode explores the dramatic shift in the American macaroni and cheese market—focusing on how Kraft, long synonymous with boxed mac and cheese, lost its market dominance. Through analysis of corporate decisions, changing consumer tastes, new competitors, and management missteps, the hosts and their guest, WSJ reporter Jesse Newman, trace the story of Kraft’s rise, its recent struggles, and how innovators are taking bites out of the blue box's turf.

Key Discussion Points and Insights

1. Nostalgia and Kraft’s Early Dominance

• Personal Memories:
  • Both hosts and Jesse Newman recall childhoods centered around Kraft Mac and Cheese.
    • B: "As a kid, the thing I remember most is that I may or may not have at different points, eaten entire boxes of it myself." [00:07]
  • Kraft’s brand so dominated U.S. grocery aisles that its blue and orange boxes became an iconic fixture.
    • B: "You walk down that aisle and there is the Kraft Mac and Cheese section... just, you know, the core of the grocery store." [00:37]
  • Jessica emphasizes its pervasiveness:
    • A: "It's like the non political big blue wall." [00:48]

2. Origins and Historical Growth

• James L. Kraft’s Innovation:
  • Kraft started selling cheese in Illinois, eventually inventing processed cheese and launching Kraft Mac and Cheese in 1937 for 19 cents a box.
    • B: "Kraft was a cheese seller in Illinois... Kraft Mac and Cheese as we know it was introduced in 1937. When it was released, it cost 19 cents a box." [03:47]
  • It became popular because of affordability, especially during the Great Depression and World War II.
  • From the 1960s on, Kraft successfully marketed the product to kids by partnering with popular cartoons (Flintstones, Scooby Doo, Rugrats).
    • A: "As time went on, Kraft began marketing its Mac and cheese to kids. The brand partnered with popular cartoons..." [04:52]

3. Changing Consumer Preferences and Competition

• Rise of “Better for You” Alternatives:
  • As health consciousness grew, brands like Annie’s began drawing shoppers with organic options.
    • B: "People are looking for fresher food, healthier food... a lot of Kraft's products...just comes to be seen as sort of the epitome of processed food." [05:43]
  • Store brands and other quick meal options (like ramen) also chipped away at Kraft's dominance.
    • B: "They're leaving the Mac and cheese category altogether. They are turning to other quick foods like Ramen..." [13:53]

4. Kraft’s Response: The Heinz Merger and Cost-Cutting

• Corporate Merger:
  • In 2015, Kraft merged with Heinz, spurred by the private equity firm 3G, known for aggressive cost-cutting.
    • B: "This is supposed to be sort of a new chapter for many of these brands." [06:21]
  • 3G slashed costs by cutting jobs and closing plants, initially raising profits but undermining future growth through loss of expertise and innovation.
    • B: "A lot of people view it as they just really gut the organization and that they cut costs at the expense of future growth." [07:01]

5. Pandemic Bump, Then Fresh Threats

• Temporary Sales Boost:
  • COVID’s home-cooking boom drove people back to nostalgic brands like Kraft, with a reported $90 million in online Mac and Cheese sales in 2020.
    • A: "The president of US business at Kraft Heinz told investors that the company had online sales that totaled to nearly £90 million of Mac and cheese. He said that was equivalent to 41 Statues of Liberty." [08:27]
  • However, the arrival of new, trendier brands set the stage for further decline.

6. Goodles: Reinventing Mac and Cheese

• Founding Story:
  • Paul Earle, a former Kraft employee, identified an opportunity for a healthier, more adult-oriented mac and cheese.
    • B: "He thought to himself, this is no healthier than it was when I worked at Kraft decades ago... I can do this better." [09:04]
  • Goodles launched in 2021, more than twice Kraft’s price, marketing higher protein, adult flavors, and quirky branding with celebrity endorsement by Gal Gadot.
    • A: "Goodles enlisted the help of Wonder Woman... Actor Gal Gadot signed on as a Goodall's brand ambassador..." [10:47]
  • Targeted millennial and higher-income shoppers, a cohort Kraft was failing to reach.
    • B: "They hit on what they think is a really key insight, which is that Mac and cheese isn't just for kids..." [10:10]

7. Taste Test Segment

• Direct Comparison:
  • Jessica conducts a blind taste-test between Kraft's classic and Goodles' Cheddimac (the closest analog).
    • A: "That one tastes like Mac and cheese... It's cheesy, it's a little salty. It's pretty creamy." [12:29]
    • A: "Goodel's had that slightly earthier texture to the pasta, while Kraft was sort of silkier..." [12:54]
  • Kraft employees had similar results: Goodles tasted close, especially Cheddimac, though texture differences were noted.
    • B: "It was particularly the texture that was described to me as a bit...iffy, but it was pretty close to Kraft's nostalgic flavor." [13:23]

8. Recognizing Trouble and Corporate Chaos

• Concern Spreads Internally:
  • Kraft employees started warning executives about the growing appeal of rivals like Annie’s, Goodles, and low-cost store brands.
    • B: "Every major retailer has a new Mac and cheese brand...they started telling executives at Kraft Heinz, hey, you know, we might have a problem here." [13:53]
  • Kraft’s overall company was mired in “corporate chaos” with constant restructuring and staff turnover.
    • B: "There’s a lot of restructures. There’s a lot of churn among employees...it meant that there was like constantly new priorities." [14:55]

9. Kraft’s Counteroffensive and Fall in Market Share

• 2025: “Year of Mac and Cheese”:
  • Kraft Heinz threw money and innovation at the problem—rolling out new flavors (pizza, garlic, everything bagel, hot honey), bigger boxes at lower price points, and cleaner labels (no artificial flavors or preservatives).
    • B: "They launch a bunch of new flavors...Pizza, pizza, Mac and cheese, pizza, everything, Bagel, garlic, hot honey." [15:42]
  • Despite efforts, Kraft’s market share fell from 45% to 39% (2022 to 2025), and overall sales kept dropping.
    • B: “Between 2022 and 2025, they went from capturing 45% of American Mac and cheese dollars to 39%.” [16:35]
  • Kraft Heinz announced a split in 2025, unwinding the merger.

10. Lessons and Looking Forward

• Mismanagement and Missed Signals:
  • Jesse Newman attributes Kraft’s decline to corporate complacency, failure to innovate, unwillingness to listen to employees, and a reliance on brand legacy over evolving consumer desires.
    • B: "They really rested on the laurels of these longtime brands that in fact no longer had the cachet with consumers that they once did...if you aren't one of them, you're very vulnerable." [17:44]
  • Kraft now promises a higher-protein, more affordable line and a premium line with bolder flavors for 2026.

Notable Quotes & Memorable Moments

• B: “Kraft Mac and Cheese was Mac and cheese. There was no other.” [00:25]
• A: “It's like the non political big blue wall.” [00:48]
• B: “I really can't overstate how big a deal this is in the food industry.” (on the 2015 merger) [06:21]
• B: “You cut costs, but you lose all kinds of institutional knowledge...they cut costs at the expense of future growth.” [07:01]
• A: “Goodel's had that slightly earthier texture to the pasta, while Kraft was sort of silkier. But they did taste remarkably similar.” [12:54]
• B: “If you aren't one of them, you're very vulnerable. And best of luck to you.” [17:44]

Timestamps for Key Segments

• Childhood Kraft memories & nostalgia: [00:05–01:04]
• Origins of Kraft Mac and Cheese: [03:41–04:50]
• Entry of Annie’s and health-focused competitors: [05:30–06:10]
• 2015 Kraft Heinz merger & 3G's cost-cutting: [06:10–07:48]
• Pandemic sales surge: [08:17–08:43]
• Paul Earle & birth of Goodles: [08:43–10:10]
• Gal Gadot and Goodles’ marketing: [10:47–11:02]
• Taste test (Kraft vs. Goodles): [12:34–13:23]
• Internal warnings at Kraft & market chaos: [13:53–15:29]
• 2025 Marketing push & market decline: [15:42–16:35]
• Reflection on mismanagement & conclusion: [17:44–19:06]

Conclusion: Where Kraft Stands Now

Despite decades as market king, Kraft's Mac and Cheese lost its “cheesy” crown through a mix of changing consumer tastes, nimble competitors, and internal company dysfunction. The brand’s attempt at revival—through flavors, packaging, and nutrition—has so far failed to fully stem the decline. With new lines promised and the corporate split finalized, Kraft faces an uncertain, but still hopeful, future in America’s pantry.

This summary captures the episode's spirit, utility, and nuance—offering valuable insight for anyone interested in iconic brands, business strategy, or the evolution of American food staples.