H.J. Heinz Co. () plans to spend 2 million pounds ($3.2 million) to market its new “Squeeze & Stir” soup in UK. Heinz will advertise its product in supermarkets helped by television and internet.
Apart from selling powdered cup soups, Heinz will now sell soup in sachets, which will contain a puree for dilution with hot water.
Heinz will put its product on sale by the end of July at a retail price of 59 pence a packet.
Heinz had posted robust earnings of 84 cents per share in the third quarter of fiscal 2011, surpassing the Zacks Consensus Estimate of 81 cents and the prior-year earnings of 72 cents per share.
Profits were primarily driven by robust volume growth of 7.2% in emerging markets backed by strong performance of brands like Complan and Glucon-D nutritional beverages in India, ABC branded products in Indonesia, Heinz branded products in Russia, particularly Ketchup and Heinz infant nutrition products in China.
Moving forward, Heinz also raised its full year 2011 guidance to the range of $3.04 to $3.10 from its previously announced range of $2.95 to $3.05. The outlook reflects the company’s plans to increase investments in Middle East and Latin America.
Based in Pittsburgh, Pennsylvania, Heinz manufactures and markets food products for consumers, foodservice, and institutional customers; and has operations in North America, Africa, Latin America, Europe, the Asia Pacific, and the Middle East. Heinz competes with Kraft Foods Inc. (KFT) and Smithfield Foods Inc. (SFD).
Currently, we maintain a Neutral rating on the stock. Further, Heinz holds a Zacks #3 Rank, which translates into a short-term Hold rating.
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