H.J. Heinz Company
(
HNZ
) enhanced its presence in the cleaning segment by launching a new
cleaning vinegar, Heinz All Natural Cleaning Vinegar. This cleaning
vinegar is 20% stronger than the traditional distilled white
vinegar. With customers more aware of the harmful effects of harsh
chemicals on health and environment, there is a strong demand for
natural products that are safe.
Heinz All Natural Cleaning Vinegar contains a 6% acidity level
and is priced affordably. Besides its primary use in cleaning,
Heinz All Natural Cleaning Vinegar can also be used in cooking.
This adds a new dimension to the product portfolio of the
company and helps it to step into the cleaning solutions segment.
The company is consistently involved in product innovation in order
to maintain growth. Previously, Heinz had launched Heinz Ketchup
Blended with Balsamic Vinegar, which was an addition to the brand's
standard line-up of ketchup offerings.
For fiscal 2013, the company expects earnings to be in the range
of $3.52-$3.62. Increasing share in emerging markets, strong
investments, productivity benefits and cost savings initiatives are
expected to contribute toward growth in earnings. The Zacks
Consensus Estimate is 80 cents for the first quarter of fiscal
2013, and $3.53 for the FY2013.
We appreciate the wide product portfolio of the company and its
growing presence in fast emerging countries like India, China and
Indonesia. We also like the productivity and cost saving
initiatives taken by the company. On the other hand, rising cost of
input commodities and lower-than- expected performance in its core
business in the U.S. can have a negative impact on margins and
revenue of the company.
H. J. Heinz Company carries a Zacks #3 Rank in the near term
(Hold rating). One of its peers,
ConAgra Foods Inc
(
CAG
) currently has a Zacks #2 Rank in the near term (Buy rating).
Headquartered in Pittsburg, Pennsylvania, the H. J. Heinz
Company manufactures and markets processed food products worldwide.
It produces ketchup, condiments & sauces, frozen food, soup,
beans and pasta meals, infant nutrition and other food
products.
CONAGRA FOODS (CAG): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
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