Heinz said in its third quarter earnings release that ketchup is doing well abroad in countries such as Russia, China and Brazil. (Gene J. Puskar / Associated Press) |
But there’s less red on burgers and fries in the U.S., where H.J. Heinz Co.said its third quarter sales trailed strong international results.
The company’s revenue abroad spiked 20% in the quarter ended Jan. 25 and made up 20% of all Heinz sales. Revenue from ketchup alone was up 8.8% globally even though in countries such as China, it’s still so new a concept that it’s often referred to as “tomato sauce.”
In North America, however, so-called organic sales – which exclude the effects of mergers, acquisitions and borrowing – were up just 1.3% while volume slipped 2% as the Pittsburgh-based company raised prices on its frozen potatoes, sauces and ketchup.
To lift sales, with an eye to the value-conscious consumer, Heinz said it will launch new products in more manageable sizes and prices, including a 10-ounce stand-up pouch of ketchup for 99 cents and smaller versions of its yellow mustard and Worcestershire sauces for about $1.
Overall, Heinz’s revenue increased 7.2% year over year to $2.9 billion. Net income was up 3.9% to $287.2 million. Segments such as infant and nutrition products were down for the quarter.
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