YEARS OF MARKETING UNDERINVESTMENT CATCH UP TO KRAFT HEINZ

Summary from the TLDR Marketing newsletter

Kraft Heinz has spent just 3.2%-4.6% of net sales on advertising and marketing since 2016, far below competitors like Constellation Brands and Hostess Brands that invest 7%-10%. Despite generating billions in cash, the company prioritized dividends and stock buybacks while writing down $37 billion in goodwill and intangibles since 2016. As Kraft Heinz prepares to split into two entities, its marketing investment strategy could be as critical as debt and dividend policies in shaping future performance.