H.J. Heinz Company (HNZ) enhanced its presence in the cleaning segment by launching a new cleaning vinegar, Heinz All Natural Cleaning Vinegar. This cleaning vinegar is 20% stronger than the traditional distilled white vinegar. With customers more aware of the harmful effects of harsh chemicals on health and environment, there is a strong demand for natural products that are safe.
Heinz All Natural Cleaning Vinegar contains a 6% acidity level and is priced affordably. Besides its primary use in cleaning, Heinz All Natural Cleaning Vinegar can also be used in cooking.
This adds a new dimension to the product portfolio of the company and helps it to step into the cleaning solutions segment. The company is consistently involved in product innovation in order to maintain growth. Previously, Heinz had launched Heinz Ketchup Blended with Balsamic Vinegar, which was an addition to the brand’s standard line-up of ketchup offerings.
For fiscal 2013, the company expects earnings to be in the range of $3.52-$3.62. Increasing share in emerging markets, strong investments, productivity benefits and cost savings initiatives are expected to contribute toward growth in earnings. The Zacks Consensus Estimate is 80 cents for the first quarter of fiscal 2013, and $3.53 for the FY2013.
We appreciate the wide product portfolio of the company and its growing presence in fast emerging countries like India, China and Indonesia. We also like the productivity and cost saving initiatives taken by the company. On the other hand, rising cost of input commodities and lower-than- expected performance in its core business in the U.S. can have a negative impact on margins and revenue of the company.
H. J. Heinz Company carries a Zacks #3 Rank in the near term (Hold rating). One of its peers, ConAgra Foods Inc (CAG) currently has a Zacks #2 Rank in the near term (Buy rating).
Headquartered in Pittsburg, Pennsylvania, the H. J. Heinz Company manufactures and markets processed food products worldwide. It produces ketchup, condiments & sauces, frozen food, soup, beans and pasta meals, infant nutrition and other food products.
To read this article on Zacks.com click here.
Zacks Investment Research
