Kraft challenged by "healthier" macaroni and cheese brands

Kraft Macaroni & Cheese has been a favorite meal for generations of American children, but smaller brands made with more natural ingredients are starting to nibble at its market share, part of a trend that is biting into growth at large U.S. food companies. Zenobia Godschalk, an Atlanta mother of two young boys, stopped buying Kraft's "mac and cheese" after reading its complicated ingredient list. Now she buys Annie's organic version in bulk at Costco Wholesale Corp (COST). "I'm fully aware that it is not a health food," said Godschalk, of Annie's macaroni and cheese product.

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