Price-conscious consumers are abandoning more expensive Kraft Heinz products in stores and also eating out less, causing sales in the foodservice channel to slump.
Targeted promotions
Kraft Heinz saw volumes fall by 3.2 in the first quarter, while prices rose by 2.7 percentage points. Sales of 6.4 billion dollars (5.95 billion euros) were slightly below expectations, already disappointing the ketchup maker for the fourth consecutive quarter. The company sees a slowdown in the US foodservice channel as consumers are eating out less. Nevertheless, Krafrt Heinz is gaining market share in the out-of-home market.
With targeted promotions, the multinational hopes to win over price-conscious consumers. Volumes should pick up again in the second half of the year. But first comes a difficult second quarter in which sales will suffer the negative impact of a temporary maintenance shutdown at a plant producing products for the US out-of-home market, Kraft Heinz warns.
