Kraft Foods, who recently merged with Heinz, has a 27-brand portfolio representing $18B, yet many of these brands are old. Recently, they had a breakout innovation (big, broad and aggressive), instead of an incremental improvement… Mio!
1. Started as Crystal Light (liquid version of powder)
o Part of funnel of new ideas – constantly working on the next thing
o Took 2-3 years of preliminary planning
o Results don’t come instantly
2. Spent $50M launching
o Most ever spent
o Continued to invest after launch in years 2, 3 and 4…big ideas don’t just happen overnight, have to have staying power
3. New Category is $800M 3 years later
o Instead of marketing as extension, they created a new “liquid water enhancers” category
o Broadens the audience beyond powder buyers
The change in Kraft culture to focus on innovation has resulted in new product revenue increasing from 6% to 13% in 5 years (Source: Wharton).
Is your organization investing in breakthrough innovation?
