29 Apr, 2021 Kraft Heinz’s emphasis on e-commerce for packaged foods saw successful financial quarter, says GlobalData
Posted in ConsumerFollowing 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.”