Food and condiments marketer H.J. Heinz is conducting a global media agency review, according to sources.
In its 2012 10-K filing with the Securities & Exchange Commission, Heinz reported total advertising expenses (including production and communication costs) in 2012 of $442 million, up from about $370 million in 2011.
In the U.S. Heinz spent $50 million on measured media in 2012 and a little more than $26 million in the first half of 2013, according to Kantar.
The review, per sources, is procurement driven and comes just months after the company was sold for $23 billion to an investment consortium comprised of Warren Buffett’s Berkshire Hathaway and an investment fund affiliated with 3G Capital. Previously the company was publicly traded.
Cramer-Krasselt handles creative and media duties in the U.S. Creative duties are not part of the review process.
It was not immediately clear to C-K if its media assignment was part of the review. The shop has been handling media buying chores since 2012 when they were shifted from Starcom. C-K officials said there had been no indication from the client that any portion of their assignment was in review.
However, other sources said the global media review included the U.S. A company rep didn't respond to a query about the review.
Heinz positions itself as the company that offers “Good Food Every Day.” In addition to its flagship ketchup brand it distributes sauces, soups, beans, pasta and infant foods (representing over one third of Heinz’s total sales) under the Heinz umbrella as well as Ore-Ida potato products, Weight Watchers, Smart Ones, T.G.I. Friday’s snacks, and Plasmon infant nutrition.
The company said it had sales of $11.6 billion in fiscal 2012 with net income of $923 million.