Utz Brands CEO Dylan Lissette advised CNBC Friday that the corporate is rising its advertising and marketing spend on digital promoting to attain new customers and grow snack gross sales.
“We’re putting a lot of money there. As we go forward into 2021 [it will be] about a 60% increase,” he stated in a “Mad Money” interview with Jim Cramer. “But as we look beyond that, we’re going to be putting even more in.”
The firm, which sells a spread of salty snacks together with potato chips and pretzels, is wanting to capitalize on pandemic-era lockdowns which have left customers consuming at house. The firm’s portfolio contains manufacturers like Zapp’s, Golden Flake and Boulder Canyon.
“What we love about [digital ads] is the fact that you really are able to turn on a dime … and pursue what works,” he stated. “If some sort of an angle of attack on reaching our customers for one brand or another brand works, they’re able to very quickly lean in behind it.”
For its 2020 fiscal yr, ended Jan. 3, Utz spent about $11.1 million on shopper advertising and marketing and promoting, in accordance to its annual report. Lissette didn’t say how a lot could be dedicated to advertising and marketing and advert bills within the present fiscal yr.
Lissette stated there’s extra alternative in social media and digital ads “as opposed to sort of doing one commercial and running it for a year and realizing it didn’t really give you what you needed.”
Utz shares rose 5% to $26.56 in Friday’s session. The 100-year-old model went public final yr by way of a particular goal acquisition company deal.