Heinz adapting to new economic realities |
| The Associated Press - Nov 18, 2011 |
H.J. Heinz Co knows that every penny counts in this economy.
The world's biggest ketchup maker's second-quarter profit fell yet narrowly beat expectations on an adjusted basis Friday as it focused on fast-growing emerging markets. But in struggling developed markets such as the U.S. and Europe, the company is shrinking product sizes and selling lower-priced products such as ketchup for 99 cents and beans for around a dollar to appeal to budget-stretched shoppers.
Heinz also announced plans to close three more plants — not identified yet — as it tries to keep its own costs under tighter control.
Consumers are struggling with continued pressure from high unemployment and food costs. As a result, many people are living paycheck to paycheck buying only what they can afford rather than bigger bottles or cans of food that might be more cost-effective.
Heinz said to meet consumer's needs, it is selling pouches instead of bottles of some of its condiments, reintroducing bean products to the U.S. and selling a bag of french fries for family dinners at $1.99.
Read Full Article from The Associated Press
- Posted: 2011-11-18 11:57:17
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