Velveeta, the bright orange cheese brick in America’s refrigerators, is on the move. Kraft Heinz, fighting a persistent sales decline in the U.S., hopes that Vel2Go, a single serving sold in a ketchup-like foil pouch, will help expand the brand’s fan base. Stephanie Vance, Velveeta’s brand manager, tells CPG Insider about the launch.
Interview has been edited for length and clarity.
CPG Insider: Let’s start with an update on Velveeta.
Stephanie Vance: Velveeta has been on a transformation for the last several years, since our new campaign called “La Dolce Velveeta,” working with agency Johannes Leonardo. We’ve been focused on re-energizing the brand with the TLC it deserves. We know this is a beloved product, but we want to grow brand love with younger consumers. We’ve been focusing on culturally relevant ways to bring the brand's meaning and purpose to life. We've done that through several different activations in the last couple of years, with things like the Veltini, made with cheese-infused vodka.
We’re hoping with Vel2Go, an idea Johannes Leonardo brought to us, we can emphasize the lifestyle we stand for and a new way to enjoy and consume Velveeta.
CPG Insider: Most people don’t associate cheese with a lifestyle.
Vance: We think they do, in that plenty of people go all in on the things they love, focusing on foods that bring them pleasure. And enjoying the product in more ways means more indulgence, more pleasure.
CPG Insider: How do most people get to know Velveeta these days – mom’s macaroni and cheese?
Vance: Our two most popular products are the standard Velveeta loaf. The most common use for that is making queso. We’ve been partnering with Ro*Tel on that recipe for almost 20 years.
Velveeta Shells & Cheese, our mac and cheese product, is second. Now, Vel2GO has made the third format, a way for people to take the product outside their homes.
CPG Insider: You’re targeting Gen Z with this launch, which is an interesting audience. They love nostalgia and kitsch. But they’re also demanding food audiences, and cheese snobs insist Velveeta isn’t even real cheese.
Vance: They love their badge brands, and they also love condiments. And we also know one in four millennials and Gen Z bring their own condiments on the go. They keep hot sauce in their glove compartment. Cheese snobs or not, we know that they really, truly enjoy food. Food isn’t just sustenance to them. It's something that they want to enjoy. With this format, people can do that in more places and on more foods.
CPG Insider: Is that the primary goal, expanding the ways people think about using Velveeta? Or simply making the product portable?
Vance: Either one. We're open to seeing what consumers do, and this is a bit of a test-and-learn for us. From our social listening, we know consumers have asked about this idea, even suggesting we put Velveeta into a toothpaste kind of container so that they could squeeze it onto anything. And if people want to squeeze Vel2Go straight into their mouths, there’s nothing wrong with that.
CPG Insider: Since launching the "La Dolce Velveeta" campaign a few years back, which positions the brand as having an effortless kind of cool factor, have you seen a change in audience?
Vance: We have seen a lot of new consumers coming into the brand, especially among millennials and Gen Z. There’s been an increase in consideration and purchases. That proves that we are bringing this new generation in and still maintaining our overall fan base.
CPG Insider: How are you letting people know about Vel2Go?
Vance: This is a PR-focused initiative primarily driven through social media. We've got both paid and organic social content rollouts. We're working with paid and earned influencers, driving traffic to walmart.com. Our internal ad agency, the Kitchen, is a huge help from a social media standpoint.
CPG Insider: How much will you need to sell for you to consider this a success?
Vance: This isn’t just about sales, although we hope this idea of taking Velveeta into the condiment game sticks. We’re also watching what people say because we want them to be so excited that they talk about our brand. We want them to consider this a badge brand and not be apologetic. That’s a hugely important metric to us.