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% — Proportion of gross sales Kraft Heinz expects to allocate to advertising and marketing for the remainder of 2025.
Watercooler speak
Kraft 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 mentioned that the corporate’s “Model Development 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 and marketing 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 mentioned that to optimize advertising and marketing spend, Kraft Heinz will increase funding in pricing, advertising and marketing, product R&D, e-commerce, and its salesforce in rising markets.
Below North America chief advertising and marketing officer Todd Kaplan, who joined from PepsiCo in July 2024, Kraft Heinz has performed 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 practically a decade with Grammy Award-winning hip-hop producer Mustard. In February, Kaplan instructed ADWEEK that Kraft Heinz’s advertising and marketing technique entails integrating its manufacturers “deeper into tradition.”
That strategy, nevertheless, has typically fallen flat, resembling 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 verify the report back to ADWEEK.
Key quote
“To help our manufacturers, we’re not solely making an enormous step up in advertising and marketing {dollars}, we’re additionally reworking our strategy to drive development and construct manufacturers that resonate with shoppers,” mentioned Abrams-Rivera.
“We’re investing behind product-focused inventive that celebrates our nice tasting merchandise and unleashes the ability of our manufacturers. Let’s face it… if our product isn’t the hero of our story, we’re not telling the suitable story. So, we have now created a playbook that helps us get it proper each time. It’s all about crafting inventive that makes your mouth water, ensures our manufacturers stand out, and reminds shoppers of all of the moments when our merchandise are the right match.”
