Kraft commits to upping its adspend
Kraft has laid out plans to up its marketing spend in 2011, as it reiterated to investors its expected cost synergies from its acquisition of Cadbury last year.
In a financial update, Kraft executives also re-emphasised to investors its plan to focus on the company’s power brands, which include Kenco, Philadelphia, Dairylea and Terry's chocolate.
Tim McLevish, Kraft chief financial officer, said spend on "advertising and consumer programmes" would be upped by between 9% and 10% of net revenue, from 8% of net revenue in 2010, because of the $750m in expected cost savings from its acquisition of Cadbury.
According to Kraft’s latest full-year results, net revenues totalled $49.2bn (£30.1bn), so its overall consumer facing activity could equate to as much as £3bn.
But Kraft did not break down specific figures for its marketing activity.
McLevish also said "further investments in innovation" would boost new product development as a percentage of total revenues, from about 9% last year, to 11% by 2013.
Irene Rosenfeld, Kraft chief executive, who has been criticised in some quarters for not spending enough time at the Cadbury UK headquarters, claimed that Kraft was on a "new growth trajectory".
She said: "Kraft Foods is a much stronger company than it was just four years ago. Today, high-growth snacks comprise about half of our portfolio. Nearly 60% of our revenues are generated outside of the United States.
"And we’ve doubled our presence in fast-growing, higher-margin instant consumption channels. As a result, we’re now on a new growth trajectory. I’m confident we’ll deliver top-tier performance as our virtuous cycle accelerates around the globe."
This article was first published on marketingmagazine.co.uk
- Appointment to View: Behind the brand at Kraft's coffee HQ
- Sector Insight: Sweet and savoury spreads
- Dairylea calls review of £3 million advertising account
- Kraft opens talks with creative hotshops
- Kraft gets passionate in latest Kenco Millicano ad
- Kraft confectionery brands to tour the UK
- Cadbury dares the public with new Creme Egg mobile app
- Spots v Stripes: Cadbury versus the critics
- Cadbury rethinks Spots V Stripes digital strategy
- We'll Call You - Cadbury
- Kraft's Oreo makes Facebook record attempt
- Kraft profits dive but Cadbury grows in UK
- Kraft and Starbucks in billion-dollar legal fight
- Designer / Creative Artworker David Thatcher Recruitment £25-30k, Wantage, South Oxfordshire
- Senior Account Manager / Account Director David Thatcher Recruitment 335-60k dep experience, Milton Keynes
- planning Director Twist Recruitment £80000 - £100000 per annum, London
- Digital Account Manager [Beauty Account] - Excellent London Agency - to £30k Fill Recruitment Ltd to £30k + great benefits, Central London
- Account Manager - Superb Central London Agency - to £30k Fill Recruitment Ltd to £30k, Central London
- Blippar connects disjointed families, says MEC executive
- Nature Valley awards integrated business to start-up
- LMFM challenges bakers to be Brave on World Baking Day
- Fans take on Jo-Wilfried Tsonga in Twitter-powered tennis game
- Samsung strikes placement deal with The Wanted
- Jaguar readies global campaign for F-Type launch
What we can all learn from how Daft Punk won the web