The news: Packaged goods companies are focusing their marketing muscle on the brands, products, and channels they believe can gain market share as consumers become more selective and much of the CPG sector wrestles with weakening sales.

Performance-based budgeting:

McCormick is boosting investment in retailer search, precision marketing, and holiday promotions to increase consumption of its herbs, spices, and seasonings—tapping into consumers’ efforts to cook at home to save money. McCormick said spending to make products more visible in searches on retailers’ websites drove consumption.

Kraft Heinz said during its Q2 call that it is putting more money behind marketing as part of its turnaround plan. It is spending to defend share for Oscar Mayer and Maxwell House, “win” share with Lunchables and Jell-O, and to “win big” with brands like Heinz and Philadelphia. It has pulled back investment where it sees less potential: Earlier this year, Kraft Heinz signaled that it would deprioritize spending on its frozen platform.

The company is also spending with fewer media partners and focusing on higher-return brand media, including a multiyear partnership with Disney. It said marketing investments were paying off, citing “consumption growth” at Heinz.

Campbell's said it was accelerating its move toward digital marketing channels, with roughly 85% of its working media budget slated for social media, influencers, ecommerce, and AI-driven platforms over the next year. It is concentrating spending on Rao's, Goldfish, Pepperidge Farm, and Campbell's, moving away from a more evenly balanced brand-outlay approach. The company said focused investments led to consumption gains for Rao’s sauces in the most recent quarter.

Implications for CPGs: As consumers become choosier, so are CPGs with their marketing budgets, focusing spending where it has the most impact. Reported sales and consumption improvements could accelerate this shift, making future marketing outlays more contingent on brand performance and expected returns rather than evenly distributed across sprawling portfolios.

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