Kraft Heinz to Ramp Up Marketing Spend Despite Potential Breakup

The numbers$6.4 billion — Kraft Heinz’s Q2 2025 internet gross sales, down 1.9% year-over-year.1.5% to three.5% — Anticipated natural internet gross sales lower for the remainder of the yr.20% — Elevated funding in media in North America for the second half of the yr.4.8% — Share of gross sales Kraft Heinz expects to allocate to advertising for the remainder of 2025.Watercooler talkKraft Heinz will improve its media spend in North America by 20% within the second half of the yr because it makes an attempt to reverse sluggish gross sales amid speak of a possible breakup.Chief govt officer (CEO) Carlos Abrams-Rivera stated that the corporate’s “Model Progress System,” its international methodology to measure, monitor, and drive model development, is “gaining momentum” in North America.He added that the corporate will improve its advertising finances by 75% throughout a few of its kid-favorite manufacturers like Lunchables, Capri Solar, Kraft Mac & Cheese, and Jell-O.Chief monetary officer (CFO) Andre Maciel stated that to optimize advertising spend, Kraft Heinz will enhance funding in pricing, advertising, product R&D, e-commerce, and its salesforce in rising markets. Underneath North America chief advertising officer Todd Kaplan, who joined from PepsiCo in July 2024, Kraft Heinz has completed work together with a Kool-Help collaboration with Nike for Memphis Grizzlies star Ja Morant’s signature Ja 2 shoe and dropped its first new mustard taste in almost a decade with Grammy Award-winning hip-hop producer Mustard. In February, Kaplan advised ADWEEK that Kraft Heinz’s advertising technique entails integrating its manufacturers “deeper into tradition.”That strategy, nonetheless, has generally fallen flat, akin to with its controversial “Heinz Smiles” advert, criticized for evoking Blackface imagery.Earlier this month, The Wall Road Journal reported that Kraft Heinz plans to spin off a part of its grocery enterprise, together with a number of Kraft merchandise, leaving Heinz’s portfolio of condiments and sauces. A spokesperson declined to substantiate the report back to ADWEEK. Key quote“To assist our manufacturers, we aren’t solely making a giant step up in advertising {dollars}, we’re additionally remodeling our strategy to drive development and construct manufacturers that resonate with customers,” stated Abrams-Rivera. “We’re investing behind product-focused artistic that celebrates our nice tasting merchandise and unleashes the facility of our manufacturers. Let’s face it… if our product shouldn’t be the hero of our story, we aren’t telling the precise story. So, we’ve created a playbook that helps us get it proper each time. It’s all about crafting artistic that makes your mouth water, ensures our manufacturers stand out, and reminds customers of all of the moments when our merchandise are the proper match.”