Sales of Kraft Heinz fell by 2.7% in its first quarter. 70% of their revenue comes from the U.S, where they have struggled to keep up with the trend of shift towards fresh foods, new brands, and ready-made meals. Retailers pressed foodmakers such as Kraft Heinz, to cut prices, but Chief Executive Mr. Hee, did not agree.
Instead of cutting product costs, Mr. Hee plans to introduce new brands, expand globally, and modify products by removing excess ingredients such as artificial colors. By managing the product quality and expanding to new places and channeling systems, Mr. Hee expects sales to return to growth the following year.
https://www.wsj.com/articles/kraft-heinz-top-line-hit-by-declining-u-s-sales-1493845699
Alan Nguyen
MKTG 3343
Mr. Hee was smart about handling the decline; rather than cutting product costs to produce an ultimately cheaper product he opted to just diversify, which was the right move in my opinion.
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