H.J. Heinz: Merger and diversification offer growth opportunities in a difficult market

The food retail industry is competitive, but Heinz has held its position as a market leader and has built on a strong brand portfolio comprising both international and local brands. This case study analyzes key the strategies used by Heinz to become one of the leading food manufacturers and also assesses the opportunities and threats facing the company.

Scope

  • Analyze key strategies used by Heinz and assess how the company has established its position as a market leader.
  • Assess opportunities for Heinz such as expansion in emerging markets and how this can help drive the company's revenues further.
  • Looks at how Heinz's gluten free range has enabled the company to carve a niche for itself.
  • Analyzes the effect of the recent merger following Heinz and Kraft food.
  • Assess the threats facing the company following the rise of private labels and Mondelez's ownership of certain brands.

Reasons to buy

What key strategies are driving Heinz revenues?

How has growth in the private labels sector affected Heinz?

What factors are fuelling growth in the food retail industry and how can Heinz enhance its position?

Following the merger between Heinz and Kraft will expansion be limited due to Kraft's agreement with Mondelez?

How has product diversification helped the company reach out to a wider consumer base?

Companies mentioned

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Table of Contents

OVERVIEW

Catalyst

Summary

HEINZ TRANSFORMATION INTO A GLOBAL GIANT

Heinz: A brief history

Heinz has continued to grow and remain profitable, but underperforms the market ...

OVERVIEW

Catalyst

Summary

HEINZ TRANSFORMATION INTO A GLOBAL GIANT

Heinz: A brief history

Heinz has continued to grow and remain profitable, but underperforms the market as a whole

Product diversification means that Heinz can cater for multiple customer types

GROWTH OPPORTUNITIES FOR HEINZ

Emerging markets provide expansion opportunities

Heinz and Kraft merger creates third largest food company in America and fifth largest worldwide

KRAFT'S AGREEMENT WITH MONDELEZ MAY HINDER GROWTH OPPORTUNITIES

Mondelez holds the rights to sell many of Kraft’s brands internationally

Kraft Foods increased product recall may affect Heinz brand reputation

High reliance on Wal-Mart

CONCLUSIONS

Heinz success driven by listening to consumer demands and acquiring brands, but threats are present

APPENDIX

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