Heinz Intros Smaller, Less Costly Food Sizes
H.J. Heinz is introducing several new products priced at 99 cents to $1.99, targeted primarily at lower-income and recession-hit households.
The company is also re-introducing its baked beans in the U.S. market.
CEO Bill Johnson noted that one-third to one-half of unit purchases in several of the company's U.S. categories now consist of lower-priced SKUs, as more consumers now buy week-to-week to stretch their food dollars, reports Forbes.
A growing number of consumers are buying smaller sizes, even though they cost more on a per-unit basis than larger sizes, because they have to stretch their food budgets from week to week.
The new products include a 10-ounce pouch of Heinz Ketchup, a 9-ounce pack of yellow mustard, and cans of Home Style Beans, all priced at 99 cents.
Heinz recently reported that its FY second quarter income declined to $237 million, versus $251 million in Q2 2010.