Kraft Heinz is reviewing its global media account as its contract with Starcom Worldwide is expiring this year. According to sources MediaSense, which recently handled the global Diageo media review, is managing the Kraft Heinz pitch.
Confirmed the development – Kraft Heinzspokesperson said,“Kraft Heinz is exploring for its global media planning and buying operations to ensure we are positioned for success in 2021 and beyond.”
Kraft Heinz consolidated media duties with Starcom in 2015. The review comes shortly after CEO Miguel Patricio said in February this year that it plans to increase media spend by 30% while slashing the number of design and creative agencies it plans to work with by half in 2020.
During an earnings call Patricio said, “To balance the “slight decrease” in marketing and “big increase” in media for 2020, Kraft Heinz is also going to be reducing the number of new products in or the amount of innovation in 2020 by 50%. It looks to concentrate on “innovation that can really make a difference”.
The FMCG company’s intention to double down on media spend was also apparent last year when Patricio said during a third quarter earnings call that media spend will see “a significant percentage increase” and an “even greater” increase for the brands that are the biggest drivers of its profitability in 2020.
Patricio also stressed the need to better balance spending and marketing, as well as innovations versus core brand support.
According to data consultancy COMvergence, Kraft Heinz previously spent about $520 million globally per year on media.
