Inside Kraft Heinz's Long-Term Strategy for Web3

After about a year of laying the groundwork for its presence in cryptocurrency-adjacent technology, Kraft Heinz is the latest big brand to unveil a strategy around what proponents bill as the next iteration of the internet, Web3. The food conglomerate is kicking off what it says will be a long-term plan for the space with a set of non-fungible tokens (NFTs) in the image of an Oscar Mayer Wiener Whistle that will be distributed at "meat-ups" online and in-person at Miami's Art Basel event this week, which will also feature appearances by the Wienermobile. The company hopes the activation will be the first of several to roll out in the coming months as it flexes the infrastructure and partnerships built with Web3 vendors over the last year. How Web3 Will Change the ‘Broken’ Relationship Between Brands and Creators "The focus of what we're trying to do is thinking about how do we modernize and continue to transform Kraft Heinz as a digital experience," Kraft Heinz's head of digital experience, Justin Thomas, told Adweek. "For the last 12 months, we started looking at it and thinking about what's the best way for us to not just enter the space, but to stay and to engage and make it something that is really a continuous method to engage with our consumers." While cryptocurrency prices and NFT sales have slumped amid turbulence in the space and general economic uncertainty, Thomas is optimistic about the future of the technology in the long run as a loyalty mechanism that gives consumers a stake in the company's portfolio of brands. "If we were trying to do something that was a one-off, it might be more of a concern for us," Thomas said. "But we're looking at this as more of a long-term endeavor—and so, short-term noise or short-term concerns for us, they're there. But we're committed to looking at building something in this space." Thomas said the cultural icons associated with the Oscar Mayer brand, such as the Wienermobile and the Wiener Whistle, made it the best property to kick off the strategy, but the company has plans to expand its offerings across other big-name brands like Heinz Ketchup and Kraft Macaroni & Cheese. Kraft Heinz filed a flurry of trademark applications in June for NFTs related to Jell-O, Kool-Aid, Velveeta, Lunchables, Oscar Mayer, Philadelphia and the Kraft brand itself. "There are many brands that we think can play a role in Web3. As far as Oscar Mayer specifically, this is step one," Thomas said. "The next step for us is to build this into something that engages and rewards loyal consumers." Mattel Debuts New NFT Marketplace to Turn Toys into Digital Collectibles Kraft Heinz has spent its months of preparation for the launch tapping a team to guide the activations, forming partnerships with NFT and metaverse startups, and strategizing around how loyalty programs might make use of digital tokens. "What's really exciting for us is the way that we're building a best-in-class infrastructure," Thomas added. "We're looking at this as a way to grant consumers the ability to own part of our brands and share value through the use of digital tokens and NFTs. And so I think the really exciting thing for us as marketers is that it gives an opportunity for us to be more collaborative with our consumers." While some brands are losing interest in NFTs amid months of declining sales, other consumer-facing companies that have made sizable investments in the space, such as PepsiCo, Mattel and Adidas, are continuing to focus on digital tokens' potential to bolster rewards programs, supplement real-life experiences and promote existing intellectual property.