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Heinz can't shake the pickle

HJ Heinz Co. (NYSE: HNZ) recently learned inadvertently how strong its brand was with consumers.

The company had announced that it was going to change the label on its flagship brand of ketchup. It seemed entirely reasonable and appropriate to drop the pickle from the label and replace it with a tomato.

Little did the company expect to encounter outrage from consumers, who launched a "Save the Pickle" campaign, complete with a blog, and an organized letter and e-mail avalanche.

Continue reading Heinz can't shake the pickle

Earnings highlights: Hershey, Heinz, Burger King, Foot Locker, Saks and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

For more earnings highlights from this week, see: Home Depot, Lehman, Hewlett-Packard, Gap, BJ's and others

Upcoming quarterly reports include Big Lots (NYSE: BIG), Borders (NYSE: BGP), Rio Tinto (NYSE: RTP), Tivo (NASDAQ: TIVO), Novell (NASDAQ: NOVL), Dell (NASDAQ: DELL), Sears (NASDAQ: SHLD), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

Heinz (HNZ) earnings meet forecasts, raises outlook

H.J. Heinz Company (NYSE: HNZ) must be doing something right, as the food products company reported Q1 earnings that grew six percent this morning. Never one to be in a pickle, the company reported that double-digit growth in ketchup sales, soups, beans and its "Smart Ones" healthy frozen meals. Add some productivity increases into the mix in the face of rising commodity prices and Heinz's results seem pretty impressive.

Heinz's net income rose to over $205 million, or 64 cents, while sales jumped 9% to $2.25 billion, in-line with Wall Street forecasts.

Did its markets just go ketchup crazy and start eating healthy frozen meals instead of unhealthy ones? According to Heinz, the company witnessed sales of its top-15 brands grow by more than 11%, with ketchup growth at 13% and beans, soups and Smart Ones product sales soaring by 25%. Not bad.

Heinz also seemed to have very good luck in international emerging markets, where sales spiked 15% for the quarter. Although commodity costs rose 4.7%, the food company offset that somewhat by raising product prices about 2.8% while increasing productivity to apparently cover the balance. Now, if the company could only "increase productivity" a few percent every single quarter, that would be a neat feat and its numbers would probably reflect that effort.

Cadbury to update investors tomorrow

Tomorrow morning, confectionary company Cadbury Schweppes plc (NYSE: CSG) will update its investors on a slate of issues that range from a spin-off of its U.S. drinks unit to taking austerity measures to cut costs. Cadbury is trying to recover from a salmonella scare last year, declines in its U.K. chocolate market share, and an increase in the cost of raw materials.

An overview of what could be discussed:
  • Sale of U.S. drinks business: The company is expected to announce a sale of its U.S. drinks business, which includes 7-Up and Snapple. The New York Times reported that it is currently unclear which bidder is in the lead for the unit - bids came from a group led by Cott, a consortium that included Thomas H. Lee Partners and TPG and a third consortium led by Blackstone Group and KKR. Other possible candidates for the unit could include The Hershey Company (NYSE: HSY) or Tootsie Roll Industries Inc (NYSE: TR), in a deal that could value the unit as high as $16B. Other sources believe Kraft Foods Inc (NYSE: KFT) and Wm. Wrigley Jr. Company (NYSE: WWY) could be potential bidders; Kraft, JP Morgan believes, would have an edge over Wrigley due to greater funding, flexibility and synergies.

Continue reading Cadbury to update investors tomorrow

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Last updated: February 13, 2012: 06:51 PM

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