Account Action

Taco Bell, operated by Tricon Global Restaurants (Canada), has moved its $5-million advertising business to TBWA Chiat/Day of Toronto as part of a North American alignment. The business had been with Harrod & Mirlin/FCB. The National Post has awarded the...

Taco Bell, operated by Tricon Global Restaurants (Canada), has moved its $5-million advertising business to TBWA Chiat/Day of Toronto as part of a North American alignment. The business had been with Harrod & Mirlin/FCB.

The National Post has awarded the assignment for its spring campaign to Holmes & Lee, after meeting with a handful of smaller shops. The value of the assignment has not been disclosed.

The Ontario Science Centre has awarded its $800,000 account to Harrod & Mirlin/FCB following a review that included Axmith McIntyre Wicht, Communiqué, Echo Advertising, Ranscombe & Co. and Wolf Group on the shortlist. The incumbent was MacPhee & Partners. All are Toronto agencies.

The Turkish Ministry of Tourism has awarded its North American account to Bensimon*Byrne*D’Arcy of Toronto for the seventh year following an annual review of the business. Mediavest Worldwide, the agency’s media unit, handles the buying and planning assignment.

King City, Ont.-based ClubLink Corporation, a network of golf clubs and resorts in Ontario and Quebec, has hired Sharpe Blackmore Saffer Euro RSCG as its agency of record. The duo will build on the success they had with a series of direct mailings done in 1999.

Vancouver, B.C.-based St. Paul’s Hospital Foundation has named Palmer Jarvis DDB its AOR for a two-year stretch. The assignment includes long-term strategic planning, an awareness campaign and production.

The newly formed Resorts Atlantic Marketing Council (RAMC) has appointed Greenfield Hospitality Services to handle group sales and marketing outside of Atlantic Canada. The RAMC is a partnership between the Atlantic Canada Opportunities Agency and six resorts, with the goal of increasing awareness of the region as a corporate meetings and incentive destination.

Kraft Heinz beats the street, but reports slight sales slide

The company's Q2 net sales, while down slightly, reveal continued demand for snacks and pre-packaged meals.
Kraft Heinz

Kraft Heinz is reporting earnings of 78 cents a share, beating Wall Street’s estimate of 72 cents a share, thanks to continued demand for snacks and pre-packaged meals. However, the company also reported a net sales decline of 0.5% compared with the same period last year, to $6.6 billion, according to its latest Q2 earnings report, released Tuesday.

The company experienced a favourable 2.3 percentage point impact from currency and a negative 0.7 percentage point impact from its February divestiture of Hormel Foods – including the Planters peanut brand – which closed in the second quarter of 2021.

Its cheese divestiture – which included the sale of its natural cheese division to Lactalis – is expected to close in the second half of 2021, says Kraft Heinz Global CEO Miguel Patricio in this morning’s conference call.

Adjusted EBITDA slumped 5.2% versus the year-ago period to $1.7 billion and increased 6.6% versus the comparable 2019 period. Higher transportation and inflation-related goods costs continue to affect the company’s bottom line.

Kraft Heinz’ organic net sales declined 3.6% in Canada over the last three months compared with a comparable period last year, this as total net sales rose 8.8% year over year. 

However, its overall organic net sales slipped 2.1% compared with 2020 figures. This includes the negative impact stemming from exiting its McCafé licensing agreement. However, this decline was partly offset, Kraft Heinz reports, by “partial recovery in foodservice channels and retail consumption trends.”

“Food service is recovering, and recovering fast,” Patricio stressed in today’s earnings call. He said “the bet to support QSR” early in the pandemic, with individual packets of ketchups and sauces, is paying off.

Channel trends are still normalizing, he warns, and it’s too early to see how at home or away from home, will net out. “We have big ambitions for away from home business,” he said. Consumers continue to evolve how they eat, with Patricio saying that Kraft Heinz is collaborating with a popular DTC brand for its Philadelphia cream cheese.

Accrued marketing costs, the company reports, rose to $968 million from $946 million in December 2020.

“We are investing more in our brands, and better as well, building a much more creative company,” Patricio reported.

Kraft Heinz is also strengthening and diversifying its media presence, he said, driving repeat rates for those discovering and rediscovering the brand. Patricio added that the company is continuing to drive its transformation program forward, modernizing its brands and better connecting with its consumers.