Content creators MrBeast, Logan Paul and KSI have teamed up on a new food company called Lunchly that is taking on the well-known ready-to-eat Lunchables brand.

What Happened: Food giant Kraft Heinz Co (NYSE:KHC) may have trouble ahead for its Lunchables brand with Lunchly now in direct competition.

Lunchly was launched with the "goal of revolutionizing lunch" and providing a focus on quality ingredients, delicious flavors and healthier options for the grab-and-go lunch sector, the creators said.

There are three Lunchly meal options at launch: Turkey Stack 'Ems, Pizza and Fiesta Nachos. Each meal comes with a PRIME hydration drink and a Feastables bar. PRIME was launched in 2022 by Paul and KSI; Feastables was also launched that same year by MrBeast.

Paul said Lunchables has dominated the lunch grab-and-go market for years and Lunchly will provide a "better option" for people looking for convenience and healthy options.

Lunchly products will hit stores later this month. A search on the company's website showed Kroger Co (NYSE:KR) locations as stores that will carry the products.

MrBeast said Lunchly will provide healthier and "better-tasting options.

"Lunchly is all about giving kids a fun, grab-and-go meal that's not just delicious, but also good for them. We're here to change what lunchtime looks like for the next generation," MrBeast, aka Jimmy Donaldson, said.

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Why It's Important: With three of the most widely followed names in content creation and people popular with the younger generation today, Lunchly could present a major challenge to Lunchables.

The news also comes at a bad time for Lunchables, which said in August that it was ready to offer Lunchables in school cafeterias with a potential $25 billion opportunity.

MrBeast is the most followed person on YouTube with 315 million followers. PRIME has been one of the fastest growing beverages since it launched, hitting the one billion units sold milestone in November.

Existing distribution deals that Feastables and PRIME have in place could help the company quickly land in retailers globally.

Bad news for Lunchables could also be bad news for billionaire Warren Buffett. Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK) owns over 325 million Kraft Heinz shares and more than 25% of the company.

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Photos: MrBeast, Logan Paul, KSI via Shutterstock