Kraft Heinz Partners with Google to Accelerate Digital Transformation

Diving Brief:

  • The Kraft Heinz Company and Google announced a multi-year strategic partnership to accelerate the digital transformation of giant CPG, via press release. The marketer will use a variety of Google technologies with the goal of building consumer relationships and engagement by delivering personalized content at scale.
  • Kraft Heinz will use Google Cloud’s artificial intelligence (AI) and machine learning (ML) to drive food innovations by deriving real-time insights from data, as well as build a customer data platform on GoogleCloud. It will also help Kraft Heinz improve media activations and effectiveness on Google Ads.
  • The partnership continues Kraft Heinz’s efforts to create a proprietary ecosystem of internal digital capabilities that will help it make better data-driven decisions as consumer behavior continues to shift to online channels.

Overview of the dive:

Kraft Heinz’s new multi-year deal with Google provides a major technology boost to a strategic transformation plan first unveiled in September 2020, which sees the company reinvest in its brands and cut costs by $2 billion through to efficiency upgrades by 2024. The CPG marketer has worked to develop internal digital capabilities, including a new data platform called Kraft-O-Matic, and data and analytics technologies. Analytics provided by Google Cloud and Google Ads could help streamline these efforts.

“Together with Google, we are building world-class digital capabilities and proprietary privacy-centric data systems that will help consumers connect with our iconic Kraft Heinz brands on a whole new level through personalized offers and interactions. ”, said Sanjiv Gajiwala, director of responsible growth for Kraft Heinz in North America, said in a press release. “At the same time, we also plan to accelerate our innovation agenda by leveraging insights provided by Google around food conversation trends, shopping behaviors and consumer demands – it’s the future of food. ‘food.”

Kraft plans to use Google Cloud technology to help it leverage data across its organization. It will use AI and ML tools to drive food innovations – including new flavors, formulations and products – while deciphering more quickly what consumers are looking for across different categories and channels. Google Cloud will also be at the heart of its Kraft-O-Matic data platform, which will allow the marketer to use first-party data collected from channels such as call centers and in-store purchases. to personalize consumer experiences in a privacy-centric way. Efforts by CPG marketers to collect more first-party data are likely to take on greater importance as changes by Google and Apple tighten the data privacy landscape.

By deepening its relationship with Google Ads, Kraft Heinz hopes to improve its media activations and efficiency while continuing to leverage YouTube and its creators. As part of an effort to connect with culture as content and commerce converge, Kraft Heinz in 2021 launched a food-focused digital platform called What’s Cooking and teamed up with Activision’s Call of Duty. . Last year, Google Ads helped the marketer “significantly” increase view rates and reduce CPMs, compared to the same period a year earlier, according to the release.

“Personalization at scale is what brands need to convert and retain consumers. Google Cloud’s expertise in artificial intelligence and machine learning helps brands leverage predictive analytics and data-driven insights to make better decisions in seconds, improving efficiency creation and the media.” Giusy Buonfantino, vice president of consumer packaged goods at Google Solutions, said in the press release.

Kraft Heinz’s digital transformation comes as the company seeks to meet the changing challenges of the pandemic. Although it still faces supply chain, cost and inflation pressures, its fourth-quarter earnings beat estimates and the company expects organic sales growth across the the year to a figure of less than 10%.

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