When Kraft Heinz announced it was writing off an extraordinary $15 billion from the value of just two of its brands – Kraft and Oscar Meyer – analysts were quick to blame the business model followed by owner 3G Capital. The Brazilian investment firm has a reputation for cutting costs, and a lack of spending on branding was highlighted as a major factor contributing to the decision.
But trimming investment in advertising and promotion was only part of the picture, according to Julie Kollman, chief research officer at Kantar. “If you look at a deeper analysis, the real issue...