Zero-Based Budgeting | Virtual Roundtable
As CPG companies face the disruption of big data, private label and digital, many are turning to zero-based budgeting (ZBB) to maintain their margins and drive ROI. The practice was first introduced in the 1970s by Texas Instruments accounting manager, Pete Pyhrr. It recently gained
traction when 3G Capital bought Kraft Foods in 2015, merged it with Heinz, and implemented a ZBB system. With ZBB, a business builds its budget from zero, rather than the previous year’s spend,
and defends each expense based on anticipated growth.
