food

Thanks To Stepped-Up Spending, Heinz Is 'Winning Big'

 
Heinz is introducing a new ketchup gimmick: the Love Lid. Available in just a few markets — and only direct-to-consumer — the cap lets people line up the ketchup stream of their dreams. If it's a delicate drizzle on a hot dog, choose "Like." For a flashy zigzag across your fries, switch to "Love." And if the goal is a sploosh big enough to blanket that burger, select "Crazy Love."

The innovation is based on the company's extensive insights about just how strongly people feel about "the right amount of ketchup," says Andrea Egido, global marketing manager for Heinz. "That passion showed up clearly in our social listening, which identified more than 1,500 engagements around ketchup quantity debates over the past year alone," she says in an email to Marketing Daily. "It also came through in our consumer research, where the majority of Americans surveyed said they put ketchup on as many foods as possible."

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Egido says the effort is a way to create excitement during grilling season and, in her words, "a genuine direct-to-consumer test to learn from real consumer behavior. Offering limited-time innovations like the Love Lid directly to consumers helps us understand purchase interest and demand alongside social engagement, insights that can help inform how we approach future innovations."

The Love Lid isn't just a marketing stunt — it's part of a bigger bet Kraft Heinz just doubled down on. The launch comes just after Kraft Heinz CEO Steve Cahillane spent time on an earnings call outlining the decision to further increase such innovations and pump up marketing budgets. He also discussed how those efforts are already paying off, turning Heinz into the portfolio's star.

Overall, Kraft Heinz sales are still declining, with net sales down 1.3%, driven by weakness in U.S. retail. But because aggressive investments in brand support are already yielding results, Cahillane says the company is devoting another $100 million — on top of the previously announced $600 million — to bolster innovation and marketing for the brands with the most growth potential.

The company now says 36% of revenues come from brands that are holding or gaining share — up from 21% last year. It's divided its brands into three categories: lower-potential brands where it hopes to hang on to share, such as Oscar Mayer and Maxwell House; those it believes it can win share with, such as Jell-O and Lunchables; and finally, the high-potential brands, which it believes can win big.

Heinz is the leader in this group, increasing sales in every region, as well as in all categories including ketchup, mayonnaise, pasta sauces, and soups. Heinz and Philadelphia have both been singled out for more brand heat. "We are strengthening brand equity through new campaigns — like Heinz's 'It Has to Be Heinz," Cahillane says.

As for Heinz Ketchup's quest for the perfect squeeze, Egido says it is focusing on how the Love Lid fares this summer before it considers a next move. "We're always listening to fan feedback and exploring new ways to innovate around the irrational love people have for Heinz," she says. While there's nothing to announce yet, "never say never."

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