Bos takes the oars at Canoe

Online news and information provider Canoe has awarded its full-service advertising account to the Toronto and Montreal offices of Bos, after conducting a review that involved a handful of unnamed agencies. Bos will begin work on a spring campaign for both...

Online news and information provider Canoe has awarded its full-service advertising account to the Toronto and Montreal offices of Bos, after conducting a review that involved a handful of unnamed agencies.

Bos will begin work on a spring campaign for both Canoe and its French-language Web site, Canoë, which is slated to break in just a few weeks.

The campaign will be broken into two segments: A portion of the advertising will focus on building national awareness for the Web site, while other efforts will be geared more toward specific regions or sub-brands, such as Slam! Sports or Lifewise, says Rosanne Caron, vice-president of marketing and research with Canoe.

Meanwhile, Canoe is rumoured to be pursuing a distribution deal with an Internet Service Provider (ISP) and preparing to expand into the U.S. in an effort to keep pace with competitors like Bell’s Sympatico portal, which recently formed a joint venture with U.S. Web giant Lycos.

Caron confirms that Canoe is exploring both of these possibilities, but says there is ‘nothing firm’ to announce at this point.

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.