Want some ketchup with that kasha? More and more Russians – as well as Europeans, Chinese and Brazilians – seem to be slathering the tomato-based sauce on their cuisines.
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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