29 Apr 2021
Posted in Consumer
Kraft Heinz’s emphasis on e-commerce for packaged foods saw successful financial quarter, says GlobalData
Following today’s news (April 29th) that Kraft Heinz has released its Q1 2021 financials, Ramsey Baghdadi, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:
“The continued high-grade financial performance from Kraft Heinz in Q1 2021 was driven by its focus in e-commerce. The company’s achievement to out-perform its sales success in pre-COVID-19 conditions was triggered by taking the risk to focus on expanding its presence in the digital market over in-store price promotions. This reflects the company’s recognition of the digital shopper that sprouted from at-home lifestyles during the pandemic, as well as its trust in e-commerce and the subsequent long-term financial opportunities it can bring in the packaged food sector.
“E-commerce is a vital platform for FMCG as consumers continue to buy groceries online. In fact, 57% of consumers globally claim they have started, are continuing to, or are buying groceries more frequently online. As we know, this was mainly a result of consumers on a global scale adapting to at-home-centric lifestyles due to lockdown conditions. However, as lockdown conditions are gradually being lifted in some countries, many consumers still intend to work from home, where over a third (39%) globally have stated that they will continue working from home or will do it more frequently.
“With clear indications that high reliance of e-commerce is here to stay for groceries, Kraft Heinz made a safe bet to prioritise this trend over more traditional promotional strategies. If the company continues to invest in prominent sector trends, it will continue to gain market share in a very competitive industry.”