According to a statement by William Johnson, Heinz's chairman, president and CEO, five mega brands drive almost 50% of the company's global sales, and that the company "will continue to invest in these ... to provide innovative food solutions to consumers around the world."
Although the food marketer announced a second-quarter sales increase of 11.7% to $2.57 billion, the increase came mainly from acquisitions, including Classico pasta sauces and TGIF frozen snacks.
Following a meeting today with Mr. Johnson, Wall Street analysts expressed doubt about Heinz's ability to grow net profits despite ongoing restructuring efforts.
Credit Suisse First Boston analyst Dave Nelson said in a note that while Heinz highlighted the need to improve execution in their programs, "after little to no progress for several years, depth of management and infrastructure remain in question."
