• Ad Age, Thursday, May 1, 2008 10:30 AM

Kraft and Kellogg both saw profits drop for the quarter, but both beat analyst projections. And both say their advertising and marketing investments are paying off.

"We remain committed to both advertising and promotions to help drive sustainable and dependable growth," says Kellogg CEO David Mackay. "We're spending more in absolute terms." Mackay has said that Kellogg tends to do well in a recessionary environment, and the company hasn't seen consumers trading down to private-label brands.

"Going forward, we'll continue to invest behind key brands and as the year progresses we expect to add two other large U.S. businesses--pour-able salad dressings and crackers--to our list of categories gaining share," says Kraft CEO Irene Rosenfeld. Rosenfeld has said that increased marketing support has helped Oscar Mayer Deli Fresh cold cuts, DiGiorno pizza, Jell-O and Oreo. More recently, advertising has also helped move the needle on Planters, Singles Select and, perhaps most surprisingly, Maxwell House.

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