Kraft Foods Group recently announced a merger with H.J. Heinz financed partially by Berkshire Hathaway, which will have $9.5 billion worth of common stock in the new company “H.J. Heinz-Kraft Foods.” L2’s Digital IQ Index: Food assesses the Digital IQ of four Kraft Foods Group brands (Kraft, Velveeta, Philadelphia and Planters) and finds the enterprise to have a lower-average Digital IQ despite Kraft’s shining digital performance.
The Kraft brand– in the Genius category and ranked 5th among 80 packaged food brands – showed digital prowess with smart programmatic buys and experiments with Google Lightbox ads. Kraftrecipes.com is one of the top destinations for recipe content and places Kraft, Philadelphia and Velveeta products. But broken links ruin the Velveeta site experience and a one-dimensional site for Planters dampens the effectiveness of programmatic ads, lowering the enterprise’s Digital IQ.
Heinz, the only H.J. Heinz brand in the L2 Index, has a lower score than all Kraft brands except Planters. It is ranked 56th and in the Challenged category due to clunky site navigation and a poor app-focused mobile strategy.
Will the merger lift the digital competence of all brands in the new enterprise? Kraft has a history of scaling its digital investments, like the aforementioned recipe site. Kraft brands in L2’s Index have strong social and ad content (e.g. Oscar Mayer’s ‘Wake Up & Smell the Bacon’), another example of leveraging scale.
Excerpt and full version of L2’s 2014 Food report are available to download. 2015 study coming soon.