"H.J. Heinz Co. Planning More Plant Closures" - interesting marketing data in article

[geckosfeet]

What I think is interesting is that Heinz is changing its marketing strategy based on the eroding purchasing power of the American consumer. They are making smaller packages so that they can "serve the rapidly growing number of U.S. households with incomes below $50,000".

One of the problems here is, that smaller packages usually mean higher cost per unit product for the consumer, and perhaps higher profits for the manufacturer.

In any case, Heinz makes clear that their marketing model is being changed to take advantage of a rapidly growing number of lower income households.

H.J. Heinz Co. Planning More Plant Closures (NYSE: HNZ)

Heinz's bottom line has taken a hit because of higher commodity prices, prompting the company to increase prices on many of their products and to trim costs with plant closures and layoffs. Consumer data reviewed by Heinz shows that many consumers are now purchasing smaller package sizes in virtually every category of Heinz products as a result of the weak economic environment. Heinz makes its namesake ketchup, Ore-Ida frozen potatoes, and Weight Watchers Smart Ones frozen meals.

In response, the company has decided to move up the roll out of items that will appeal to those consumers, including a new, 10-ounce version of Heinz ketchup, retail sizes of mustard, Worcestershire sauce, and Heinz 57 sauce, and a new line of Heinz Home Style Beans, all sold for around $1 per unit. Mr. Johnson said "Importantly, these new products will enhance our ability to serve the rapidly growing number of U.S. households with incomes below $50,000," a segment of society that has grown three times faster than households with incomes above that threshold.

He said that the beans were being brought back at the request of consumers. He stated, "We believe this is the right time for the return of this convenient, nutritious and value-oriented classic. Consumers have been turning to comfort foods during the recession, and a recent consumer poll ranked baked beans as the No. 2 comfort food."

H.J. Heinz Co. Planning More Plant Closures (NYSE: HNZ)

[xchrom]

1. recommend

[SharonAnn]

2. In my single person household, large sizes end up going to waste.

So they're not more economical.

It's been frustrating find appropriately sized condiments, since it could take me absolutely ages to use up things like katchup, mustard, steak sauce, etc.

Even mayonnaise.

[ChazII]

3. It is the same in my household. n/t

[bluestate10]

10. I agree. Although I am not in the company's targeted demographic.

I will buy the smaller packages.

[Tsiyu]

4. "And we're doing our part here at Heinz

to make DAMN SURE people's incomes remain low!"

[Broderick]

6. Who owns this company?

[robinlynne]

8. You're joking, right?

hint: John Kerry's wife

[Tsiyu]

11. Actually she only owns 4% of the Co. Stock

It's publicly traded, so the shareholders own it.

She divested most of her stock years ago.

My point above was that virtually ALL U.S. Corporations pay their workers shit wages, pay their CEOs outrageous salaries and bonuses, insuring that most Americans will earn less than that $50,OOO anum they quote in their press release.

[robinlynne]

16. oh. call me stupid. i give. I thought it was a reference to Kerry.

[Tsiyu]

17. Nah, you're not stupid

I love Kerry, and his wife.

But she doesn't control the biz in any way.

I was merely bitching about the current US corporate labor attitude.

[MH1]

15. c'mon, you're smarter than that

right?

:banghead:

[Broderick]

18. Where is Corzine when I need an honest politician

and interpretation

?

[Initech]

5. And what was the CEO's bonus, I wonder?

[Broderick]

7. Whatever the corporate board thinks it should be

Who is on that board and who is the CEO.

[Leftist Agitator]

12. His name is William Johnson.

And in 2010, his total compensation was $18.5 million.

http://www.pittsburghlive.com/x/pittsburghtrib/business/s_744960.html

[The Genealogist]

19. Aw, the poor baby!

However does he scrape by on such a sad little pittance? :sarcasm:

[rfranklin]

13. He only made $18.5 million!

Heinz CEO's compensation slips to $18.5 million

By Pittsburgh Tribune-Review
Saturday, July 2, 2011


<a href="http://finance.yahoo.com">Yahoo! Finance</a><br/><a href="http://finance.yahoo.com/q?s=HNZ">Quote for HNZ</a>


William Johnson, chief executive of H.J. Heinz Co., received total compensation of $18.5 million last year, or 2.6 percent less than the $19 million he got in 2009, said proxy material filed with the Securities and Exchange Commission on Friday.

His salary of $1,245,111 remained the same, as did his stock awards worth $1.5 million. His long-term performance award increased to $4.7 million from $3.8 million. But the value of his pension and deferred compensation declined to about $2.9 million from $4.1 million, and his annual incentive plan award declined to less than $4.3 million from about $4.8 million.


Read more: Heinz CEO's compensation slips to $18.5 million - Pittsburgh Tribune-Review http://www.pittsburghlive.com/x/pittsburghtrib/business/s_744960.html#ixzz1eB6xBpa3

[Initech]

14. $18.5 million is considered a drop? God damn them!!!

:banghead:

[pansypoo53219]

9. butbutbut the bush tax cuts were extended to the JOB CREATORS to create jobs.

it didn't werk?

[JVS]

20. Heinz is weird because it runs a premium brand of low price items.

Even though I'm from Pittsburgh and would prefer to support the hometown product, I quit buying heinz ketchup when I noticed that I could get a bottle of store-brand, red gold, or hunts ketchup on sale for 99¢ often enough that I never had to pay more. The same size Heinz was always $2 give or take 20¢. I'm sure the beans are the same way. I think it makes sense for Heinz to make these smaller sizes if it can bring them back to a competitive price. I can live with 10 oz of beans instead of of 15, but I'm not paying 100% premiums to eat Heinz's product.