Kraft Heinz announced that it would pause further price hikes for its meals and condimentsas consumers are increasingly sensitive to inflation, Reuters reported.
The company believes that 2023 will be difficult, so it estimates that earnings this year will be below Wall Street estimates, pressured by the need for more promotions and higher costs on commodities like soybeans, oils, and packaging materials.
With unstoppable inflation, a large number of companies are raising prices at the slightest provocationbut consumers are paying attention to labels to get more for their money.
With this strategy, Kraft joins PepsiCo, which last week also said it would not raise prices any further.expecting a positive reaction from consumers in the second half of the year.
In counterpart, Coca-Cola, Unilever and Procter & Gamble have said they will continue to raise pricesin an exhibition that differentiates the paths that consumer goods companies are taking to boost sales.
“Consumers are looking for convenient, filling and nutritious meals, while paying more attention to price“, commented Miguel Patricio, CEO of Kraft.
The executive also highlighted that the company would stop further price increases in North America, Europe and Latin America and most of Asia.
“With the vast majority of 2023 price increases already implemented in stores, prices will be less favorable throughout the yearBrittany Quatrochi, an analyst at Edward Jones, told Reuters.
“This means that driving increases in the number of products sold through innovation and adding value to consumers will become increasingly important for sales growth,” added Jones.
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