Kraft Heinz to boost media spend by $50m
Kraft Heinz is to vigorously invest in working media in the US in 2016 and has said it will boost its media spend by $50m as it looks to throw its weight behind brands including Capri Sun, Heinz Ketchup and Mac & Cheese.
The investment comes as the company looks to further shift its ad spend from non-working media (such as agency and production costs) and plough it in to what Kraft Heinz actually pays to place its advertising and marketing.
The company, the result of a merger between Kraft and Heinz companies made the comments during an earnings call yesterday (25 February) and also announced a turn-around in sales, which rose 155 per cent to $7.1bn after last August reporting less rosy fortunes when the business reported a 4.9 per cent fall in sales at Kraft and a 4.1 per cent drop at Heinz in its first quarterly results as a merged company.
“We expect 2016 will be a strong marketing year for us,” said Georges El-Zoghbi, chief operating officer. “Including a further shift of our advertising spend from non-working to working media, with our goal of increasing working media to at least three-quarters of our marketing budget.”
Kraft Heinz is planning a number of major ad campaigns for Capri Sun and Mac & Cheese, the latter having recently undergone a revamp to remove artificial flavours, preservatives or synthetic colours, a move that the company will “make noise” about in the near future.
Bernardo Vieira Hees, chief executive officer added: “To unleash growth, we will continue to focus on innovation, go-to-market capabilities and increasing working media dollars. We'll build our innovation pipeline through big bets in each market, and as the year unfolds, you'll see us launch advances in areas where consumers are migrating.”