If you think H.J. Heinz
Known best for its ketchup, Heinz produces more than 650 million bottles annually, along with 11 billion packets of the red sauce. But it also comprises a diverse portfolio of brands such as Weight Watchers, Smart Ones healthy frozen dinners, and an assortment of snack foods like Bagel-Bites and Ore-Ida potatoes. It plans to build upon its core portfolio, particularly in the health and wellness segment, which it sees growing twice as fast as all packaged goods.
International sales, which make up 56% of Heinz's revenue, benefited from strong surges in demand, with sales up 21% in the Asia/Pacific markets and up 15% in Europe. On the domestic front, however, food service revenues were essentially flat, despite a 1.7% price increase, while U.S. consumer product sales rose 10%.
Of course, we're used to this trend, since the weak U.S. economy has left companies relying on overseas business to generate growth. I'm not too worried about it, particularly when you see rivals like Kraft
With a strong international flavor boosting sales, Heinz increased its dividend 9% to $0.415 per share. The once-troubled pickle purveyor that had attracted the attention of shareholder activist Nelson Peltz seems to have returned to its crunchy goodness.
At nearly $50 a share, Heinz stock is at its highest levels in nearly a decade. Yet, when compared to others like Campbell Soup
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