CHANGING CONSUMER BEHAVIOR
As a global food company, Heinz continues to adapt resiliently to new market realities, especially changing consumer behavior. One of the most notable trends in Fiscal 2009 was the emergence of a more frugal and thrifty consumer. Shaken by the economic downturn, consumers around the world ate at home more often to stretch their food budget and they pursued value wherever they could find it. Increasing numbers of consumers have turned to discount, dollar and club stores for lower-priced alternatives to retail supermarkets, a growing trend known as “channel shifting.” Heinz is well positioned in these growing channels. The recession also fueled the continued growth of lower-priced private label products. Private label growth, while a major concern for branded food companies, does appear to be easing somewhat and we anticipate that its growth will slow even more as the economy improves. Consumers have responded to our continued innovations like Ore-Ida® Steam n’ Mash™ potatoes and T.G.I. Friday’s™ Complete Skillet Meals, as well as more value-oriented promotions. As a result, Heinz brands have fared well in this environment.
