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Packaged Goods Giants File for Divorce; Airbnb Hosts Never Asked For These Add-ons; Mars Gets Inside Cat Owners' Heads

By Nat Ives

 

Good morning. This is Patrick Coffee filling in for Nat Ives. Today, the decade-long marriage of Kraft and Heinz was never meant to be; Airbnb's latest salvo against hotels is rubbing hosts the wrong way; and Mars marketing would love to know why cat owners work so hard for their favorite felines' love.

The company plans to split in two, with one new entity focusing on sauces. Photo: Brendan McDermid/REUTERS

The marriage of Kraft and Heinz is coming to an end after a stormy decade, Lauren Thomas and Jesse Newman report.

The packaged-goods gods plan to spin off most of their grocery business into a new company worth around $20 billion, with another division heavy on sauces and spreads like Heinz’s namesake ketchup and Dijon mustard brand Grey Poupon.

Kraft Heinz was the product of an arranged marriage one decade ago, but many of its products that were once a mainstay of American pantries have since lost favor with consumers seeking fresher, less processed food.

The company tried to invest in healthier options and sell off some of its underperforming brands like Oscar Mayer and Maxwell House, to no avail.

In 2019, the company wrote down the value of Kraft and Oscar Mayer labels by $15 billion.

 
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The Unintended Cost of Disruptive Ad Features in Mobile Games

Research shows that disruptive features in mobile gaming ads may come at the expense of sustainable, long-term business growth. Read More

More articles for CMOs from Deloitte
 

No Thank You For Your Service

Airbnb hosts are automatically signed up for third-party services and have to opt out. Illustration: Daisy Korpics/WSJ, iStock

Airbnb has rolled out a new "services" offering that looks to its hosts like yet another potential headache, Allison Pohle reports.

The short-term rental giant wants travelers to book in-home add-ons, such as a personal chef, trainer or masseuse, that Airbnb says can make a trip more unique. It’s another way for the company to compete with hotels, which often offer perks like gym access or spa appointments.

But hosts aren't so excited. They don't get a cut of the revenue from these add-ons, and their properties are automatically enrolled in the program, so they're required to opt out.

Superhost Amy Maynor, for example, says her homeowners insurance policy only covers registered guests, not their massage therapists.

“I don’t want to get the oils all over the couch or the beds, or what have you,” she says.

 

Quotable

"It is like joining a golf club now. You have to be recommended by another member to get in."

— Jak Cluness, vice president of intelligence at brand-protection company Corsearch, on the invite-only groups popular among makers of fake luxury handbags.
 

Cat GPT

Mars is focused on felines as cats come close to becoming America's favorite pet. Photo: Diana King for WSJ

As cats begin to catch up with dogs as America's favorite pet, the team at packaged food giant Mars has worked to better understand, and market to, their owners through a project called "Cattitude," Natasha Khan reports. 

An actual cat owner is now consulted on every campaign. The company hosts regular kitten yoga sessions at its Franklin, Tenn., offices. One afternoon, senior bosses walked around the office with cat ears.

The goal: Reorient the entire team—from those who formulate new products to those putting together advertisements—around one of cat parents’ chief sources of angst: “feline insecurity,” a fear of cats’ indifference to their owners’ affection.

“It’s a more mature relationship,” said Fernando Silva, vice president of marketing for Sheba cat food. "You could be Taylor Swift, moving masses, making billions, but your cat still might not always come running."

 

The Magic Number

$200 billion

The valuation that Elon Musk's AI startup xAI reportedly plans to seek in its next fundraising round. 

 

Keep Reading

Photo: Richard B. Levine/Zuma Press

Google agreed to pay $2.4 billion to license AI startup Windsurf's tech and hire its CEO after an OpenAI acquisition deal fell through. [WSJ]

Amazon's extended Prime Day boosted U.S. retail spending by 30.3%, according to Adobe. [Bloomberg]

Why the business world just can't quit the old school landline. [WSJ]

Wedding planning is the latest thing that AI is changing forever. [NYT]

Meta acquired yet another AI startup, this one focused on voice technology. [Bloomberg]

The Grok "MechaHitler" incident may indicate that AI companies will bear little in the way of consequences for controversies. [WaPo] 

Charles Tombras Jr., former president of the eponymous ad agency, died at 83. [AdAge] 

 
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We bring you the most important (and intriguing) marketing and experience news every day. Write me at nat.ives@wsj.com any time with feedback on the newsletter or comments on specific items. We want to hear from you.

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