17173: With Kraft Heinz Breakup, There Will Be Blood, Not Ketchup.

 

Adweek reported Kraft Heinz is ending its 10-year-old megamerger, splitting into two separate businesses.

 

Expect divorces from White advertising agencies to follow shortly. Hell, don’t be surprised if Kraft Heinz in-house creative resources are adversely affected too.

 

Unlike Heinz Ketchup, the moves will likely happen quickly—and produce major splatters.

 

Kraft Heinz to Separate 10 Years After Megamerger 

 

The company’s headquarters will remain in Chicago and Pittsburgh

 

By Mark Mwachiro

 

Kraft Heinz is set to unwind its union 10 years after completing its megamerger, splitting into two separate businesses, the multinational food company announced Tuesday morning.

 

Global Taste Elevation will encompass brands including Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese. A leader for this new business has yet to be announced, with a search already underway.

 

Meanwhile, Maxwell House, Oscar Mayer, Kraft Singles, and Lunchables will be part of North American Grocery, led by Carlos Abrams-Rivera, CEO of Kraft Heinz.

 

Kraft Heinz said the current names are working titles, and it will reveal official names for the two businesses at a later date. The company’s headquarters will remain in Chicago and Pittsburgh.

 

Rumors of the split of the consumer packaged goods giant had been circulating for some time, with The Wall Street Journal reporting in July that Kraft Heinz was looking to get around $20 billion from the spinoff of one of its grocery units.

 

The 2015 merger, orchestrated by Warren Buffett and investment firm 3G Capital Partners, never achieved the success that its masterminds had envisioned. Rather than boosting the profitability of the two companies’ collection of processed food and condiment brands, the company’s stock price has fallen by more than 60%, and its market value has taken a hit of roughly $57 billion, currently sitting at about $31 billion, the Journal reported. 

 

Kraft Heinz stock was down by as much as 6% after the separation news was announced Tuesday morning.

 

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives, and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz.

 

Abrams-Rivera added, “This move will unleash the power of our brands and unlock the potential of our business. This next step in our transformation is only possible because of the commitment of our 36,000 talented employees, who deliver quality and value for consumers every day.”

16907: Culturally Clueless Ketchup, Kicks, And KKKandles…?

 

Advertising Age spotlighted The Biggest Brand Fails Of 2024, including culturally clueless contenders. In addition to Kraft Heinz—which could’ve nabbed two awards—Ad Age called out the following brands:

 

Adidas, SL 72 shoes

 

The sports brand in July was forced to apologize for “any upset or distress caused” over its release of a remake of its SL 72 shoes, which originally debuted during the 1972 Munich Olympics. Critics, including the StopAntisemitism group, pointed out that the games are known for the murder of 11 Israeli athletes by Palestinian terrorists. The brand also drew complaints for making model Bella Hadid, a prominent critic of the Israeli government, the face of the campaign. Hadid in an Instagram post later said that “I am shocked, I am upset, and I am disappointed in the lack of sensitivity that went into this campaign,” adding that “my team should have known. Adidas should have known and I should have done more research so that I too would have known and understood, and spoken up.”

 

Bath & Body Works, “Snowed In”

 

The retailer in October came under fire for a design on packaging that resembled Ku Klux Klan hoods. The packaging for the Snowed In winter candle included snowflake of white cutouts, a style that drew comparisons to the hoods with eye holes worn by the KKK. Bath & Body Works pulled the candle from store shelves after social media complaints. In a statement it said it is “committed to fixing any mistakes we make—even those that are unintentional like this one.”

 

 

Gee, the Snowed In candle is perfect for igniting cross-burning events.

16811: Critiquing Cultural Cluelessness And Ketchup.

 

Adweek published a perspective on the Heinz diversity dunce doubleheader, where pasta sauce combined with ketchup to create cultural cluelessness that resulted in folks throwing rotten tomatoes. The op-ed offered enlightenment and suggestions on “how brands can get it right” to avoid PR disasters.

 

No disrespect to the author, but the exposition regurgitated viewpoints previously expressed, and ideas already proven ineffective. As a public service—and since it’s a slow news day—MultiCultClassics dutifully dissects and debates the piece.

 

The author presented standard cautionary suggestions—which will likely be ignored—including:

 

Stop leaving money on the table and tap into diverse thinking 

 

The problem here is there’s no money on the table to begin with. Most brands are not interested in expanding or even creating diversity budgets for consultants of color. And those that do only cough up crumbs.

 

Check yourself!

 

This recommendation involves integrating “mandatory ‘cultural sensitivity checks’ into every stage of the creative process.” There are numerous problems with this notion. First, White advertising agencies are inherently culturally clueless and culturally insensitive; hence, formalized checks would be baffling at best and useless at least. Second, who would create and moderate the checks? Third, given the industry is streamlining procedures and squeezing scopes, adding to the creative process will meet resistance. Finally, in nearly everything related to diversity, Adland has consistently experienced failure with self-regulation.

 

ERGs have ‘resource’ in the name

 

Delegating diversity expertise to ERGs poses numerous problems too. First, the scheme would only work if White advertising agencies had ERGs covering the main cultures—Black, Latinx, Asian, LGBTQIA+, Neurodiverse, Generational, etc. Second, ERG members have already voiced concerns about being designated cultural experts, especially when the associated tasks aren’t rewarded with additional compensation. Third, being in an ERG does not qualify someone to assess work; e.g., if the Black ERG is comprised of individuals from the accounting department, do you really want them critiquing layouts and storyboards? After all, you wouldn’t ask creatives to balance the books and handle payroll. Finally, utilizing ERGs in this manner feels like the modern equivalent of running concepts past the mailroom attendant, janitorial crew, or cafeteria staff.

 

Keep it real

 

This point disrupts the op-ed format, emphasizing the importance of authenticity and avoiding jumping on cultural bandwagons that lack brand relevance. No duh. The problem is the culturally clueless don’t recognize their cultural cluelessness—and they rarely possess the intelligence, humility, empathy, and accountability to act with social responsibility.

 

Don’t let apologies become your brand story

 

Sorry, but this point feels like self-promotion for the author and her company. Oddly enough, the enterprise is probably often hired specifically to handle damage control.

 

Closing thoughts

 

MultiCultClassics agrees with the foundational concept of the op-ed. However, it seems the author was too polite to openly state the message, so here it is: To avoid cultural cluelessness, dismantle your culturally clueless crew—that is, create a diverse staff, from top to bottom. The solution is not to integrate performative systems, but rather, to eliminate systemic racism.

 

The Cost of Cultural Ignorance: How Brands Can Get It Right

 

Don’t let your brand become synonymous with reactive damage control

 

By Destiny K. Chambers

 

In the unfolding narrative of advertising’s cultural missteps, the recent Heinz ad controversy serves as a poignant reminder of the shadows cast by history. These ads resonate with the undertones of propaganda posters used to dehumanize and mischaracterize. They are relics of a time when images were manipulated to weave false narratives—narratives that continue to shape perceptions today.

 

This issue extends far beyond Heinz. Last year, KFC’s “Sorry, Utensils” campaign in Canada faced similar criticism for its depiction of Black individuals eating chicken, their exaggerated reflections in the unused utensils bordering on caricature. Coupled with the campaign’s slogan “finger lickin’ good,” seen by some as appropriating African American Vernacular English (AAVE), these choices weren’t simply oversights, these choices read as microaggressions that cut deep, reminding Black consumers that their identities are still subject to careless misrepresentation.

 

Consider the haunting imagery of Nazi propaganda, designed to marginalize and vilify, or the grotesque satire of African Americans during the Jim Crow era. These weren’t mere oversights; they were calculated attempts to distort reality, and their legacy persists. I think back to my visceral reaction in 2019 when Gucci released a balaclava eerily reminiscent of blackface minstrel makeup. It was a slap in the face, a stark reminder that even brands with massive resources can fall prey to these blunders. The Heinz ad, featuring a Black man with his mouth covered in red ketchup, evokes similar imagery.

 

 

While these ads may not have intended to cause harm, they inadvertently echo visual tropes from a painful past used to dehumanize and marginalize Black individuals.

In today’s world, brands can’t afford to be tone-deaf. It’s not solely an ethical imperative, but a strategic one. These instances underscore the need for brands to be more mindful of the subtle messages their visuals convey. It’s an opportunity for us to collectively learn and evolve, recognizing that even unintentional missteps can perpetuate harmful stereotypes.

 

To break this cycle, brands must embrace a multifaceted approach. Here’s what brands can do today to be more nuanced in their ideation and planning stages.

 

Stop leaving money on the table and tap into diverse thinking 

 

If your brainstorming sessions look like a casting call for a 1950s sitcom, you’re doing it wrong. Diversity isn’t a trend; it’s the world we live in. At the heart of these recurring marketing blunders is a glaring absence of diverse voices. How does a brand as culturally ubiquitous as Heinz overlook such glaring insensitivities?

 

The answer lies in the homogeneity of those decision-making rooms. Without varied perspectives, ads are released into the world, only to be retracted amid justified public outcry. To effectively engage with multicultural markets, you need the richness of diverse life experiences.

 

Check yourself!

 

Diversity in creative teams is crucial, but it’s not enough. Even with diverse teams, unconscious biases can creep in. Integrate mandatory “cultural sensitivity checks” into every stage of the creative process. This means establishing review systems that rigorously assess whether content aligns with the cultural intricacies it seeks to depict. Disney’s establishment of a cultural consultants team serves as a commendable example.

 

Develop an internal checklist or audit tool, informed by data compiled from the communities your brands seek to engage. This goes beyond simple representation and delves into questions of power dynamics, historical context, and potential exploitation of cultural elements. It provides a structured framework for critical self-reflection, forcing teams to confront uncomfortable questions and justify their creative choices with a deeper understanding of cultural impact.

 

ERGs have ‘resource’ in the name

 

Employee resource groups (ERGs) should be leveraged not merely for cultural events but as integral participants in the creative process. They bring invaluable insight into community representation.

 

Instead of pitching a creative concept to a homogenous team, flip the script. Have members of your company’s ERGs (representing the cultures depicted in the ad) “pitch back” their interpretation of the concept. This provides immediate feedback on potential blind spots and unintended interpretations. It shifts the power dynamic, giving voice to those often spoken for, and forces the creative team to truly listen.

 

Keep it real

 

Authenticity is paramount. Not every brand needs to jump on every cultural bandwagon. Sometimes the most authentic thing you can do is be humble and sit down.

Brands must align their creative endeavors with their core values, ensuring that they contribute meaningfully to cultural dialogues. This involves introspection and a genuine assessment of whether their products truly serve the communities they wish to engage. Consumers, especially Gen Z and millennials, demand authenticity and social responsibility. Before trying to capitalize on the latest social justice movement, ask yourself: Do our core values align with this? Have we earned this community’s trust? Is this genuine or a money grab?

 

Know your lane.

 

Don’t let apologies become your brand story

 

Don’t let your brand become synonymous with reactive damage control; it erodes trust and makes any future attempts at cultural engagement feel performative. Instead, shift your focus to prevention. Before launching anything, dedicate serious time to brainstorming potential interpretations and reactions. Ask the tough questions: What if this image is misinterpreted? What if this language is offensive? What if this concept reinforces a harmful stereotype?

 

Don’t just rely on internal perspectives. Use focus groups, surveys, or online platforms to gauge reactions and identify potential blind spots. Proactive prevention is far more effective (and less damaging) than reactive apologies.

 

Ultimately, brands must learn from historical missteps and cultivate a future where cultural representation is approached with sensitivity and respect. Implementing diverse teams and instituting cultural checkpoints are not merely strategic moves—they are essential steps toward earning the trust and loyalty of diverse communities. It’s about more than just avoiding bad press; it’s about acknowledging the inherent beauty and complexity of our multicultural world and engaging with it in a way that honors its truth.

16801: TGIFatherless.

 

The Guardian published a perspective on the controversy sparked by a Heinz advertisement featuring arguably racist stereotypes. In short, Heinz took the “pa” out of pasta sauce, which left a bad taste in viewers’ mouths.

 

When a Heinz advert features racist stereotypes to sell pasta sauce, it’s vital to speak out. So I did

 

By Nels Abbey

 

I’m glad that an ad apparently minimising the role of Black fathers has drawn an apology. It’s lazy thinking we just don’t need

 

It’s Black History Month, one dedicated to reclaiming narratives. It also happens to be a month before the 140th anniversary of the plotting phase of white supremacy’s most enduring set of crimes: the Berlin conference (in which it was decided which European nations, empires or monarchs would get to own which parts of Africa and, effectively, enslave the population). Complementing and continuing the catastrophes that emerged from the industrialised kidnapping and enslavement of Africans in the Americas before it, the Berlin conference unleashed a slew of compounding tragedies, confusions, narratives and stereotypes, which have led us down the years to the stereotype of single parenthood, and notably the “deadbeat father”.

 

Fast-forward to last Friday. Standing on the Victoria line platform of Vauxhall tube station, I noticed an advert for a new “family size” pasta sauce being flogged by Heinz. It is a wedding shot, in which a joyful-looking dark-skinned Black woman in her wedding dress is clutching a fork of pasta in tomato sauce, seemingly unconcerned that sauce has dripped down her dress. So far, so innocuous. Sat beside her is a man you assume is the groom (who is white) and a rather bewildered-looking older Black woman you could reasonably guess is her mother. On her other side are two older, and also apparently bewildered, white people who would reasonably be assumed to be the parents of the groom. Admittedly I had to look a few times to ensure I wasn’t seeing things. I wasn’t. Where was her father, whom the average person – looking at her – would assume to be Black? Nowhere to be seen. Not at the top table. Not anywhere.

 

Most might not have noticed. That’s probably how the image – which Heinz, post-social media storm, has apologised for – got that far.

 

Looking at it on the tube, I reflected on how much the concept of the deadbeat or missing father has cost us. It’s not that it doesn’t happen. Everything’s Gonna Be Alright (Ghetto Bastard), a furious anti-deadbeat father record by rappers Naughty By Nature sprung to mind. It was a song I knew line for line as a 10-year-old former foster child before I met my own biological father.

 

But that detachment isn’t a given. And it certainly shouldn’t be the basis for an ad executive’s lazy assumption. On Friday night, I tweeted a line from a song by the rapper Nas, Daughters, (“for my brothers with daughters”) – alongside the picture of the Heinz ad, before adding that Black girls, believe it or not, have fathers too. It rightly touched a nerve. 

A key legacy of centuries of racist assault on Black people has been Black families struggling to stay together. Yet a statistic is a liar’s best friend, and statistics on single parenthood in Black communities are a bigot’s closest ally. Admittedly, the stats on single parenthood look notably vicious for Black communities. The figure in England and Wales increased from 48.5% in 2011 to 51.0% in 2021.

However, in Black communities, the synonymising of single parenthood with deadbeat fatherhood is an error. As in all communities, it is not uncommon for Black or multi-racial parents to break up or to be unmarried, but it is increasingly unusual for Black fathers not to play a super-active role in the lives of their children. The stereotypes we inherited from yesteryear are yet to be updated and are crowded out by statistics that don’t paint a full picture.

 

Thanks in large part to intra-communal accountability endeavours for Black fathers on an interpersonal, collective (see organisations such as Dope Black Dads) and cultural level (more musical examples include Parity by AKS), we are living through the aftershock of the era of the deadbeat Black father. So we are left with no choice but to challenge the Heinz advert and that stereotype.

 

We know that outrage sells. As does subtle racism. And in the main, no publicity – especially for a billion-dollar entity like Heinz – is bad publicity. But I will also say that, compared with other media, advertising has really tried to reflect and represent modern, multicultural and diverse Britain, especially at a time when it is under political and, as we saw in this summer’s riots, literal physical assault.

 

Advertising in Britain formed a force field against the culture war assaults of the years of Tory rule. And money talks: diversity has proven to be a very good (profitable) marketing and advertising tool. I view the Heinz ad as more cock-up than corporate Klansman conspiracy, and its apology for “unintentional perpetuated negative stereotypes” – assuming it is taking the posters down and doing something positive to challenge those stereotypes – is to be welcomed.

 

But let this be a lesson. From advertising to TV to reality, what must always be remembered is that Black girls, like Black boys, have fathers too. Keeping Black men off the table does no one any good.

16473: Help Wanted—Exclusive Experience Required.

 

Trends in job listings expose more reasons why Adland maintains its exclusivity and systemic racism—and how many White advertising agencies maintain delusions of grandeur.

 

Edelman claims that creative director candidates whose ideas are featured in the New York Times and the Cannes shortlist will be in good company. Having a complete lack of integrity and no ethical/moral conscience helps too.

 

The Kitchen—the in-house White ad agency/production studio at Kraft Heinz—seeks candidates whose experience includes, “International Recognition: You have created a world-class campaign that achieved international fame or won multiple international awards.” Okay, but it’s likely that creatives there are viewed as kitchen help.

 

Sorry, but stating the need for global trophies is a discriminatory prerequisite, as most award shows are exclusive affairs—ie, these contests are crony clubs dominated by White men and White women, which accurately reflects the industry. In short, seeking award-winning candidates translates to casting your net in a limited talent pool of familiar fish.

 

14667: Heinz In Mexico Is Fucking Stupid.

This Heinz advertisement from Mexico is bound to get a quick and hot response from TIME’S UP/Advertising.

12821: Kraft Cuts The Cheese.

Advertising Age reported Kraft Heinz will dump 2,500 employees across the U.S. and Canada. The place that rejects up to 85 percent of digital advertising—despite proclaiming not all digital advertising is crap—is rejecting lots of employees and treating them like crap. Maybe Kraft figured it could realize better ROI with content than company people.

Kraft Heinz Cuts 2,500 Jobs Weeks After Kraft Acquisition

Massive Job Cuts at Kraft Heinz Had Been Rumored Following Deal

By Jessica Wohl

Kraft Heinz Co. said Wednesday it will eliminate about 2,500 jobs across the U.S. and Canada, or more than 5 percent of its total workforce.

Massive cuts at the maker of Kraft macaroni and cheese and Heinz ketchup had been rumored since the merger was completed in early July.

Before Wednesday’s cuts, Kraft Heinz had about 46,000 employees overall. The announcement includes slashing about 700 jobs at Kraft’s headquarters.

Heinz already eliminated thousands of jobs soon after it was acquired by 3G and Berkshire Hathaway.

“We have developed a new streamlined structure for our organization to simplify, strengthen and leverage the company’s scale,” spokesman Michael Mullen said in a statement. “This new structure eliminates duplication to enable faster decision making, increased accountability and accelerated growth.”

It was not immediately clear which areas were affected by the cuts and Mr. Mullen declined to elaborate.

Kraft Heinz began eliminating some top-level marketing jobs last month. Those who have already left the company include Tom Bick, senior director-integrated marketing communications and advertising for the Oscar Mayer business; and Kara Henry, senior marketing director, communications and agency relations, Ad Age reported in July.

Kraft Heinz is the world’s fifth-largest food and beverage company, with eight brands that each pull in more than $1 billion in annual sales.

The company aims to eliminate $1.5 billion in annual costs by the end of 2017. In an earnings statement issued Monday, Kraft Heinz CEO Bernardo Hees said the company was focused on “the difficult and challenging process” of merging the two businesses.

Last month, Kraft Heinz announced plans to move its Chicago-area staff from Northfield to a smaller location in downtown Chicago. The Heinz business continues to operate out of the company’s other headquarters in Pittsburgh.

Mr. Mullen said employees affected by the move will receive a minimum of six months of severance benefits and outplacement services.

12498: Vanilla Sriracha Sauce…?

The New York Post reported Heinz is presenting a new ketchup featuring popular sriracha hot chili sauce, a flavor whose origins tie to Thailand. One thing is pretty certain: no Thai adpeople or Thai advertising agencies will be involved in the promotional launch.

Heinz debuts spicy sriracha ketchup

By Post Staff Report

This is downright saucy.

Heinz is rolling out a new ketchup flavor blended with popular sriracha hot chili sauce.

The new product will be available in Walmart, Target and other retailers and cost $2.69 for a 14-ounce plastic squeeze bottle.

The Pittsburgh-based company, known for its “57 varieties” slogan, already offers unconventional flavors tinged with jalapeno, balsamic vinegar and Tabasco.

“The new offering adds a new kick to your favorite foods and recipes, pairing well with cheeseburgers, French fries and hot dogs, and is the perfect flavor boost for chicken and eggs,” said Heinz brand manager Joseph Giallenella.

Sriricha is a tangy chili and garlic sauce that traces its origins to Thailand. Most Americans think of the “rooster sauce” version produced by Los Angeles-based Huy Fong Foods.

Heinz didn’t say which company was producing the sriricha sauce for its new ketchup.

Warren Buffett’s Berkshire Hathaway and Brazilian private-equity firm 3G Capital bought Heinz for $28 billion in 2013.

11530: McD’s Throws Tomatoes At Heinz.

Ronald McDonald is pulling a McMafioso move. The Pittsburgh Post-Gazette reported Mickey D’s is dumping Heinz ketchup from its menu items because former Burger King Worldwide CEO Bernardo Hees was named to run H.J. Heinz Company. While a Heinz spokesperson insisted the fast feeder mostly uses the company’s products in overseas markets versus U.S. markets, it still must be quite a hit for the ketchup maker. Talk about getting screwed in 57 varieties.

McDonald’s squeezing out Heinz ketchup

By Teresa F. Lindeman / Pittsburgh Post-Gazette

McDonald’s is moving to clear Heinz ketchup out of its system.

The restaurateur this week confirmed that it has started the process of moving to other vendors, following the appointment of former Burger King Worldwide CEO Bernardo Hees to run Pittsburgh-based H.J. Heinz Co. Mr. Hees also serves as vice chairman of the board of Miami-based Burger King.

“As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time,” according to a statement from Oak Brook, Ill.-based McDonald’s.

The decision appears to put an end to a years-long push by Heinz officials to regain ground with the restaurant giant that operates more than 34,000 locations around the globe, although most American customers buying Big Macs aren’t getting Heinz ketchup with their fries anyway.

McDonald’s had soured on Heinz once before, back in the early 1970s. The Pittsburgh company had 90 percent of the business supplying ketchup and pickles to the fast-growing chain, according to author John F. Love’s 1986 book, “McDonald’s: Behind the Arches.”

After Heinz couldn’t meet McDonald’s need for ketchup as a result of a tomato shortage, the restaurant chain took most of its business elsewhere.

This time around, the split is more about the people than the product.

Heinz was acquired this year by a partnership of 3G Capital and Warren Buffett’s Berkshire Hathaway. Mr. Hees is a partner in 3G Capital, which acquired Burger King a few years ago.

For Heinz, the impact of McDonald’s decision will likely be seen more in international markets. “It’s a global transition to other suppliers. Heinz was only used in two markets in the U.S.,” said Lisa McComb, director of McDonald’s U.S. media relations.

In this country, Heinz ketchup has been served in McDonald’s restaurants only in the Pittsburgh and Minneapolis markets. But Heinz had been gaining ground in some international markets.

In the U.S., other fast-food operators such as Wendy’s and Chick-fil-A use Heinz’s Dip & Squeeze portion-controlled ketchup servings.

A Heinz spokesman did not respond directly to McDonald’s statements, but reiterated comments made last month on the issue. “As a matter of policy, Heinz does not comment on relationships with customers,” said Michael Mullen, senior vice president of corporate and government affairs.

“All our food-service customers globally remain valuable to the company and are an important part of what has made the H.J. Heinz Co. what it is today. We continue to operate respecting every customer while upholding the high level of confidentiality and business ethics that the H.J. Heinz Co. has built with our business partners over the years.”