As America develops an obsession with the healthy and fresh, two classic American institutions are suffering: frozen meals and juice pouches.
In Kraft Heinz first quarterly report as a combined company on Thursday, the company reported that frozen meals and ready-to-drink beverages dragged down sales.
In fact, the areas have been so consistently dreary, it sparked analyst questions as to if the company could consider cutting the categories.
“We can only evaluate the portfolio with pros and cons and take significant steps, but I don’t think that now is the appropriate time to do that,” Kraft Heinz CEO Bernardo Vieira Hees said in response to a question from a Morgan Stanley analyst on cutting the categories.
COO George El-Zoghbi said that these are “turnaround opportunities” that the company will provide plans to address in the coming months.
Attempts to convince Americans to return to these former favourites have been unsuccessful thus far. The company’s attempt to reformulate Capri Sun to reverse consumption declines resulted in a 25% price increase, without bringing in new shoppers to justify the cost.
Meanwhile, Kraft Heinz found success with new and updated products, such as Lunchables Uploaded and portable protein pack P3, which both launched last year, and Heinz Yellow Mustard, which launched in April.
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