NEW YORK (Reuters) - Kraft Heinz is no longer making its packaged lunch brand Lunchables for low-income students receiving free and reduced-priced meals from a federal program, according to a company statement, the latest blow to one of the company's most iconic products.

Chicago-based Kraft Heinz announced plans to sell to the school lunch program early last year at an industry conference, saying it would target the $25 billion educational market.

But demand fell short of the packaged food manufacturer's expectations, the company said, as it looks to revive its well-worn brands like Lunchables, Jell-O and Crystal Light, and grow sales volumes, which have faltered after multiple price hikes.