Kraft Heinz had double digit growth in Canada in Q2 and is promising a bigger media spend in the second half of the year, one of many major CPG and food companies that are looking to get back to spending.
Yesterday, Kraft Heinz reported a net quarterly loss of US$1.65 billion, driven by a nearly $3 billion write-down on the value of some of its iconic brands. However, Kraft Heinz reports that in Canada, it had double-digit growth and gained share in 80% of its retail categories as the team invested to strengthen brand relevancy in areas like peanut butter, pasta sauce and Kraft dinners. CEO Miguel Patricio says the Kraft Heinz Canada team delivered 2% organic growth, with “pricing turning positive for the first time in seven quarters and retail consumption growth in every category.”
Meanwhile, despite the downturn, he promised that across geographies, there will be a big increase in media spend in the second half of the year, but Patricio qualified the statement, saying the brand will “compensate that big increase with reduction on other parts of the marketing investment.” He did not specify where those compensations would come from, but said that changes to expenditures would not be material, even as the degree to which consumers see its marketing increases.
That focus is on top of ongoing changes to its marketing approach that have not changed with the pandemic, and in the previous quarter included hiring new heads of marketing in each of its geographic regions.
“We want to be much better in marketing and in consumer insight, in innovation, in communication,” he says.
The increase in marketing for the second half of 2020 is something some of the biggest marketing spenders have pegged as a priority…
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