Kraft Heinz pours nearly $100M more into marketing to drive turnaround
Article excerpt
The Jell-O and Ore-Ida marketer has been focused on fewer but higher-impact media partnerships, recently striking major deals with the NFL and Disney. Kraft Heinz is heaping another $100 million on its turnaround plan, with most of that investment concentrated on marketing, the company said in prepared remarks for its Q2 earnings. Marketing will now represent at least 6% of net sales in 2026, up half a percentage-point. The move follows the packaged foods giant stating it “overdelivered” on expectations in the first half, when it began deploying $600 million of incremental spend into areas including product superiority, pricing, marketing, sales and research and development. “I see it's working virtually everywhere we're putting it. And so condiments is probably the first area where we've seen really marked improvement,” Kraft Heinz CEO Steven Cahillane said in response to an analyst question about the effectiveness of the pumped-up investment on an earnings call. “Heinz is back to growth as it should be, strong growth - strong consumption growth - which is terrific. So across the board in the U.S., we're seeing better performance.” The marketer of Philadelphia Cream Cheese, Jell-O and Ore-Ida has been directing its dollars toward a smaller number of heavier-hitting media partners as part of the turnaround. That approach recently manifested in major sponsorships, including a...
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Net sales declined 1.4% to $6.3 billion in Q2 while North America, Kraft Heinz’s largest market, was down 2.7% for the period ended June 27.
