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Utz Manufacturers CEO Dylan Lissette informed CNBC Friday that the corporate is growing its advertising spend on digital promoting to succeed in new clients and develop snack gross sales.
“We’re placing some huge cash there. As we go ahead into 2021 [it will be] a couple of 60% enhance,” he stated in a “Mad Cash” interview with Jim Cramer. “However as we glance past that, we’ll be placing much more in.”
The corporate, which sells a spread of salty snacks together with potato chips and pretzels, is trying to capitalize on pandemic-era lockdowns which have left customers consuming at residence. The corporate’s portfolio contains manufacturers like Zapp’s, Golden Flake and Boulder Canyon.
“What we love about [digital ads] is the truth that you actually are in a position to activate a dime … and pursue what works,” he stated. “If some kind of an angle of assault on reaching our clients for one model or one other model works, they’re in a position to in a short time lean in behind it.”
For its 2020 fiscal yr, ended Jan. 3, Utz spent about $11.1 million on client advertising and promoting, in line with its annual report. Lissette didn’t say how a lot can be dedicated to advertising and advert bills within the present fiscal yr.
Lissette stated there’s extra alternative in social media and digital adverts “versus kind of doing one business and operating it for a yr and realizing it did not actually provide you with what you wanted.”
Utz shares rose 5% to $26.56 in Friday’s session. The 100-year-old model went public final yr through a particular goal acquisition company deal.
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