Packaged Food Companies Slash Promotions After Weak Returns

Barclays analysis finds major packaged food firms cutting promotional spend after 2025 discounts delivered weak sales and margin returns.
Mondelez International admitted its aggressive North America promotions in Q4 2025 failed to generate sufficient ROI, prompting a pull‑back.
JM Smucker and Kraft Heinz announced scaling back promotions in specific divisions, shifting spend toward higher‑ROI initiatives.
Companies are adopting data‑driven, AI‑enabled trade‑spending discipline to prune unprofitable promotions and improve effectiveness.