Pittsburgh-based Heinz may be facing similar consumer reaction as the company strives to protect earnings in the current economy. In a series of moves, which have become standard response in the food industry, Heinz will be attempting to reduce the number of products it manufactures and markets by 15% to 20% in the next three years.

Reduction of labels is necessitated as consumers become less demanding in terms of size, type and flavor of their favorite brands. Food companies typically generate 80% of their revenues from 20% of their products. Therefore, sustaining the wide range of selections under a single brand greatly increases manufacturing and distribution costs for the company with minimal return.

Heinz is the leading producer of ketchup and other condiments, sauces, frozen foods, soups and infant foods. The company previously cut 50% of its SKU's from 2002 to 2006.

Similar moves have been made by food manufacturers Kraft (NYSE: KFT), ConAgra (NYSE: CAG), Campbell Soup (NYSE: CPB) and General Mills (NYSE: GIS).

Heinz has reaffirmed its earnings guidance for its 2009 fiscal year, which ends May 31. The company said it expects to earn $2.87 to $2.91 per share for the year. Analysts surveyed forecast earnings of $2.89.

The share price for Heinz -- and most other food companies -- has been severely depressed in recent months. HNZ reached a 52-week low on Feb. 18, closing at $32.63, just under the previous low of $33.

Campbell Soup, ConAgra, General Mills and Kraft are also trading at or just above their lows for the last 12 months.

A recent poll found that 57% of consumers are eating out less, 50% are staying home more often and 64% expect to reduce spending in the coming months.

As these same consumers look to white label store brands more frequently, brand labels such as Heinz are likely to suffer.

But Heinz has a strong balance sheet with plenty of liquidity.

Strong cash flow, combined with a relatively modest debt-to-equity ratio and a current balance of just over one, position the company well for the recession and a return to profitability.

Jamie Dlugosch is a contributor to OptionsZone.com.