MENDOTA HEIGHTS, Minn.—Throughout the pandemic, familiar food and drink brands have done well for retailers, and Kraft Heinz is no exception. The company pointed to higher demand for groceries as the main reason for its stellar performance during the third quarter, the Wall Street Journal reports. Kraft Heinz reported a 6.3% bump in revenue—much higher than analysts had predicted—as the coronavirus pandemic continues.
“Although there are multiple future scenarios we must plan for and manage against, we are in a strong position,” said CEO Miguel Patricio. He added that with more people at home, the company has started bringing in younger consumers as well as shoppers across demographics to its familiar food products.
However, retailers note that not all brands in its portfolio have fared well, with Maxwell House coffee and Oscar Mayer deli meats registering dips in market share. Kraft Heinz indicated it would up its marketing to keep the momentum brought by COVID-19 going into the future.
Last month, Patricio outlined cost-cutting measures, with the money saved going toward marketing and innovation. Kraft Heinz will be offloading much of its cheese business to Lactalis Group, in a $3.2 billion deal anticipated to be finalized in the fourth quarter.
Other food makers are taking a hard look at their portfolios and nixing underperforming brands, including Coca-Cola, Nestle, Danone, Mondelēz and General Mills.
Looking to up your marketing game? The NACS Crack the Code Experience runs November 2 through December 4, 2020, and will feature two education sessions to help boost your marketing skills, including “From Points to Passports: Reimagining Loyalty” and “Social Media Success: Winning the War for Attention.” Don’t miss out—register now!