Utz Brands CEO Dylan Lissette told CNBC on Friday that the company is increasing its digital advertising marketing spend to reach new customers and increase snack sales.
“We are investing a lot of money in this. As we move forward in 2021 [it will be] about a 60% increase, “he said in a” Mad Money “interview with Jim Cramer.” But when we look beyond that, we are going to invest even more. “
The company, which sells a variety of snacks, including French fries and pretzels, is looking to capitalize on the blockades of the pandemic era that left consumers eating at home. The company’s portfolio includes brands such as Zapp’s, Golden Flake and Boulder Canyon.
“About what we love [digital ads] is the fact that you can actually make money … and get what works, “he said.” If some kind of angle of attack to reach our customers for either brand works, they will be able to lean quickly behind him. “
For fiscal year 2020, ending January 3, Utz spent about $ 11.1 million on marketing and consumer advertising, according to its annual report. Lissette did not say how much would be committed to marketing and advertising expenses in the current fiscal year.
Lissette said there are more opportunities in social media and digital ads “instead of doing a commercial and running it for a year and realizing that it doesn’t really give you what you need”.
Utz’s shares rose 5% to $ 26.56 in Friday’s session. The 100-year-old brand went public last year through a special-purpose acquisition agreement.