Jessica Mendoza

Kraft mac and cheese dominated the pantry aisle at the supermarket, literally.

But these days, oodles of new competitors are eating into Kraft's market share.

And that blue wall is looking more like a rainbow.

And now, Kraft's big cheese status is under threat.

This year, the company said it plans to spend more than $60 million to boost Kraft mac and cheese.

Welcome to The Journal, our show about money, business, and power.

I'm Jessica Mendoza.

It's Monday, February 2nd.

Coming up on the show, how Kraft lost its lock on mac and cheese.

Take us back to the beginning.

What is the origin story of Kraft Mac and Cheese?

Kraft mac and cheese was marketed as a quick, tasty, and affordable meal for busy families.

And that's been the brand's message for decades.

As time went on, Kraft began marketing its mac and cheese to kids.

Kids loved it, and Kraft kept its hold on the mac and cheese market.

But as the 2000s became the 2010s, consumer priorities began to shift.

People were turning to other brands in the mac and cheese aisle, like Annie's, which promised an organic alternative.

In the face of these bigger shifts in the food industry, Kraft made a drastic move.

In 2015, the company merged with another huge name in packaged food, Heinz.

One of the architects of the merger was a private equity firm called 3G, which was known for its strategy of aggressive cost cutting.