Kraft Heinz Partners With Google To Achieve Ambitious Digital Transformation
As consumers shift to buying more groceries online, the Kraft Heinz Company has entered into a multiyear partnership with Google to better understand its customers, and build the products and experiences they want.
The partnership relies heavily on Google Cloud data and analytics to strengthen the food company’s Google Ads marketing strategy.
In the past year, Kraft Heinz has built up its in-house digital capabilities. Now it will rely on Google to help it build “a proprietary tech ecosystem of in-house tools that help synthesize data across its entire organization.”
Carlos Abrams-Rivera, executive vice president and president of North America at Kraft Heinz, said the company is taking a consumer-first approach to “bring consumer solutions, whether that is location-based, in-store and online,” and that the focus will always be “on making sure that it’s done with a drive on profitable market share growth,” during the company’s earnings call earlier this week.
On Tuesday, Kraft Heinz reported financial results for the fourth quarter and full-year 2021. Net sales fell 3.3% to $6.7 billion in Q4 2021, but rose 2.6% compared with 2019, showing that as consumers increasingly bought groceries online and supply constraints tightened, revenue fell.
Abrams-Rivera said 40% of the company’s share loss in Q4 was due to one-time supply-chain and similar challenges. For example, in some locations, Philadelphia Cream Cheese, had some package issues. About 30% was due to production constraints.
Abrams-Rivera also hinted at implementing “creative ways” to deliver strong demand, saying the company has clear visibility about needs to be done as well as clear actions to make sure that happens.
In today’s announcement, Kraft Heinz said it will implement “agile methodologies and digital solutions across its entire value chain to accelerate growth” through the use of Google technology in several ways.
Using Google Cloud’s artificial intelligence, machine learning and data, Kraft scientists will have the ability to create new flavors, new formulations, and new products — all while shortening the time-to-market.
The company also hopes to better understand consumer behavior through first-party data available from BigQuery, Google Cloud’s data warehouse, to personalize consumer experiences from call centers to in-store shopping.
The strategy also relies on Kraft Heinz using platforms like YouTube to build relationships with consumers. Compared with the same time period in the year prior, for example, Google Ads helped Kraft Heinz increase view rates and reduce CPMs last year. This enabled the company to better understand the consumer journey from owned through earned and paid properties, as well as in-store shopping. It supported the creation of more relevant messages and offers for the right purchase occasions.