Kraft Heinz confirmed today that it has awarded Carat its U.S. media business following a review. Publicis Media agency Starcom has handled the business since 2018.
With the award, Kraft Heinz is consolidating most of its media assignment globally with Carat, a Dentsu agency.
The U.S. is the client’s largest region by spending.
In its latest annual report, Kraft Heinz reported total advertising expenses last year of $945 million. Agency research firm COMvergence estimates that Kraft Heinz global media expenditures this year will be $325 million, including $192 million for the U.S. About 50% of the U.S. spend will be digital. Spending APAC is estimated at $65 million; EMEA $45 million and Latin America, $10 million.
Kraft Heinz's last major media review was in 2020 when Starcom was the global incumbent. It was then that Carat was awarded most of the food giant’s media business outside the U.S. with the client retaining Starcom for the U.S. region.
After retaining the U.S. portion of the account, Starcom serviced it through a new model that included capabilities and resources from several other Publicis Media agencies under a dedicated unit called Publicis 57. Included in the Publicis 57 offering was a sharper emphasis on e-commerce media planning and buying.
A Kraft Heinz spokesperson issued this statement:
“We can confirm that Kraft Heinz plans to consolidate its media buying agency support and we are working now to finalize details of a partnership with Carat (a Dentsu company). The plan is to add U.S. media management to the work Carat was already doing for its International Zone, Canada, and its Global Center of Excellence.”
Kraft Heinz brands include Oscar Mayer, Lea & Perrins, Grey Poupon, Ore-Ida, Gevalia, VelVeeta and others.