Utz Brands CEO Dylan Lissette told CNBC on Friday that the company is increasing its marketing spending on digital advertising to reach new customers and increase snack sales.
“We put a lot of money there. As we move forward in 2021 [it will be] “With a 60 percent increase,” he said in a “Mad Money” interview with Jim Cramer. “But as we look beyond that, we’ll put even more.”
The company, which sells a wide range of savory snacks, including potato chips and pretzels, is trying to capitalize on the pandemic-era blockages that have left consumers eating at home. The company’s portfolio includes brands such as Zapp, Golden Flake and Boulder Canyon.
“It simply came to our notice then [digital ads] is that you really are able to start a penny … and watch what works, “he said.” If some kind of angle of attack to reach our customers for one brand or another brand works, they are able to lean very quickly behind it. “
For fiscal year 2020, ending Jan. 3, Utz has spent about $ 11.1 million on marketing and consumer advertising, according to its annual report. Lissette did not say how much she will spend on marketing and advertising spending this fiscal year.
Lissette said there are more opportunities on social media and digital ads “as opposed to advertising and broadcasting for a year and realizing that it doesn’t really give you what you need.”
Utz shares rose 5% to $ 26.56 in Friday’s session. The 100-year-old brand went public last year through a special-purpose acquisition deal.