One of the world’s biggest FMCG brands, Kraft Heinz, has announced a global review of its $US600 million ($A1 billion) media as its contract with the incumbent, Publicis’ Starcom, is set to expire in 2021.
A spokesperson for the brand said: “Kraft Heinz is exploring for its global media planning and buying operations to ensure we are positioned for success in 2021 and beyond.”
Starcom handles all of the food brand’s media in Australia and the account is believed to be worth around $15 million annually. Its local creative is handled by Cummins&Partners who won the business in October 2017.
Last month the global CEO of Kraft Heinz, Miguel Patricio, said the company planned to increase media spend by 30 per cent this year (although, that was long before COVID-19 took hold) while slashing the number of design and creative agencies it planned to work with by 50 per cent in 2020.
During an earnings call, Patricio said to offset the the “slight decrease” in marketing and the “big increase” in media the company would focus on its high-performing existing brands rather than launch new products onto the market.
He added that media spend will see “a significant percentage increase” and an an “even greater” increase for the brands that are the biggest drivers of its profitability in 2020.
