To re-spark interest in its iconic brands and play to the “hearts of consumers,” Kraft Heinz has turned to tongue-in-cheek gimmicks.
Three recent examples—an Oscar Meyer “cold dog” popsicle; a “Veltini” Velveeta martini; and a Juicy Couture sweatsuit tie-in with Kraft Real Mayo with the word “Smooth” on the rear.
The kitsch, from the imaginings of Kraft Heinz CEO Miguel Patricio, is working, CNN Business reports. Campaigns for six of Kraft Heinz’s eight core brands, which generate more than half of its business, have generated one billion impressions apiece.
“The best way to compete with store brands is having very strong brands,” Patricio says. “They really play a role in the hearts of consumers, so we have more loyalty.”
Kraft Heinz’s star brands—Oscar Meyer, Velveeta, Capri Sun, Kraft Mac and Cheese, Philadelphia Cream Cheese, Heinz Lunchables and Ore-Ida—continue to flourish even in the face of inflation because they are familiar, quality items customers seek out, Patricio says.
“For a while, we were apologetic about the brands that we had,” he says. “We got distracted believing that the future was launching new small brands, niche brands.”
So, Heinz Kraft “stopped and said, ‘Let’s go back to basics.’ Let’s be proud of the brands we have. Because they’re incredible,” Patricio says.
Customers can expect to continue to see flashy, goofy campaigns from Kraft Heinz, the fifth-largest food and beverage conglomerate in the world. That would include espying something as odd as an eight-foot-long Velveeta box, which recently appeared in New York’s Central Park.
Kraft Heinz (KHC) currently trades for $37 a share, up from its $22 lows in 2020 but far from its high of nearly $100 a share in 2017.
“We think we can be great,” Patricio says. “And to be great, it’s a very different game.”
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