Kraft Heinz Turns to Football and Princesses to Win over Shoppers
Dow Jones
Aug 06
The maker of Kraft Mac & Cheese plans to increase marketing spending to at least 6% of net sales, leaning on partnerships with the NFL and Disney and new campaigns as it tries to reverse a U.S. sales slump.
"There's nothing like putting a princess on a package that really gets young people excited," says Steve Cahillane, CEO of Kraft Heinz, which said Wednesday it plans to spend an extra $100 million to catch more Americans' attention.
The newly allocated funds come on top of $600 million that the company allocated earlier this year toward priorities such as sales, marketing and R&D to reinvigorate its business.
Kraft Heinz said its marketing push is helping sales, though net sales still slipped 1.4% in the second quarter. Shares fell 3.4% Wednesday after the earnings report.
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