Kraft Heinz asked to withdraw 'misguided negative campaign' on palm oil

Kraft Heinz asked to withdraw 'misguided negative campaign' on palm oil

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The Secretariat of Council of Palm Oil Producing Countries (CPOPC) has requested American food company Kraft Heinz Company to withdraw its misguided negative campaign on palm oil in its latest statement. The campaign included incorrect claims on being “palm oil free and had discriminatory messages on the Kraft’s new hazelnut butter in Canada.

CPOPC viewed that the marketing strategies by Kraft Heinz Company on boycotting palm oil and fuelling misinformation at the detriment of the consumers had undermined the collective effort to produce and use a quality, healthy and sustainable palm oil. It added that the boycotting would mislead the consumers and was offensive to citizens across the world working along the palm oil supply chain, such as the millions of small farmers who were striving for sustainable palm oil and to exit from poverty.

It said the company, which was a member of the Roundtable for Sustainable Palm Oil (RSPO), was ambiguous on its palm-oil stand, whereby on one hand it was in the forefront in promoting the production and usage of sustainable palm oil, but on the other hand, it boycotted the products at the same time.

CPOPC suggested to the company to take into account the “sensitivity of the debate on palm oil in palm oil producing countries, and a far more balanced assessment of global sustainability and the environment”.

This is considering that the company’s products are widely sold in Indonesia and Malaysia, and the Kraft Heinz Company has Jakarta and Kuala Lumpur-based offices.

Meanwhile, it invited Kraft Heinz Company to not only to be consistent and respectful towards consumers’ intelligence and the dignity of the millions of people working along the supply chain, but also to consider a partnership to improve and strengthen sustainability, including concrete cooperation in preserving the orangutans.

Separately, Kraft Heinz Company recently expanded its partnership with Swiss holding company DKSH Business Unit Consumer Goods to Malaysia. The decision came as Kraft Heinz aimed to simplify its operation in the region, by decreasing time spent on distributor management and by moving from a multi-distributor model to one service provider. It also reviewed its global media account, as confirmed by its spokesperson to Marketing, adding that this came as its contract with Starcom Worldwide was expiring this year. 

Related articles:
Kraft Heinz taps DKSH as distributor for entire portfolio in Malaysia
Kraft Heinz launches global media review
Kraft Heinz to cut creative and design agency relationships but increase media spend


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