Utz Brands CEO Dylan Lissette told CNBC on Friday that the company is increasing its digital advertising marketing spending to reach new customers and increase snack sales.
“We are putting a lot of money into it. As we move towards 2021 [it will be] “A 60% increase,” he said in an interview with Jim Cramer about “Mad Money”. “But as we look beyond that, we’ll put even more things into it.”
The company, which sells a wide range of savory snacks, including chips and pretzels, wants to take advantage of the pandemic-era closures that have left consumers eating at home. The company’s portfolio includes brands such as Zapp, Golden Flake and Boulder Canyon.
“What we like [digital ads] is the fact that you really are able to light a penny … and continue with what works, “he said.” If some kind of angle of attack works to reach our customers for one brand or another brand, they can to back up very quickly. “
For its 2020 fiscal year, which ended Jan. 3, Utz spent about $ 11.1 million on marketing and consumer advertising, according to its annual report. Lissette did not say how much she would spend on marketing and advertising expenses during the current fiscal year.
Lissette said there are more opportunities on social media and digital ads “instead of doing an ad and posting 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 centennial brand was made public last year through a corporate acquisition agreement for special purposes.