Why are Heinz struggling so much ?

[Manonthestreet]

No.....they are under investigation for their accounting.....also more choice on the shelves. Never buy a stock going down .....may keep right on

I wouldn't buy Kraft Heinz on a dare.

However, I do disagree with never buying a stock on the way down. I believe a good, healthy portfolio should have one or two fliers along with the solid stocks. Yes, it could go down another 10 dollars a share and cost you a couple thousand dollars, carried by the other stocks. If you've done your homework, more likely it will turn and go through the roof.

I consider a healthy chart pattern as part of the homework, doesn't have to be blowing doors out ...but needs to have broke downturn

 

[candycorn]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Not sure what happens over in Europe but something I’ve noticed here was this:

Heinz Ketchup is probably the most used here in the US.
But when you go to buy canned tomatoes for chili, stew, casseroles or whatever, rarely do you see Heinz as a major players in canned tomatoes; just ketchup.

They make other superior processed foods like Manwich...

Just seems to me like if you're growing a bazillion tomatoes and making what is probably the best major brand ketchup in the country, you'd also have a leg-up in making the best stewed, diced, whole, crushed, sectioned tomatoes in addition to the best tomato puree, tomato sauce, dried tomatoes....etc... Maybe not.

 

[Moonglow]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Not sure what happens over in Europe but something I’ve noticed here was this:

Heinz Ketchup is probably the most used here in the US.
But when you go to buy canned tomatoes for chili, stew, casseroles or whatever, rarely do you see Heinz as a major players in canned tomatoes; just ketchup.

They make other superior processed foods like Manwich...

Just seems to me like if you're growing a bazillion tomatoes and making what is probably the best major brand ketchup in the country, you'd also have a leg-up in making the best stewed, diced, whole, crushed, sectioned tomatoes in addition to the best tomato puree, tomato sauce, dried tomatoes....etc... Maybe not.

They may since it is such a large corporation and owns many subsidiaries..

 

[candycorn]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Not sure what happens over in Europe but something I’ve noticed here was this:

Heinz Ketchup is probably the most used here in the US.
But when you go to buy canned tomatoes for chili, stew, casseroles or whatever, rarely do you see Heinz as a major players in canned tomatoes; just ketchup.

They make other superior processed foods like Manwich...

Just seems to me like if you're growing a bazillion tomatoes and making what is probably the best major brand ketchup in the country, you'd also have a leg-up in making the best stewed, diced, whole, crushed, sectioned tomatoes in addition to the best tomato puree, tomato sauce, dried tomatoes....etc... Maybe not.

They may since it is such a large corporation and owns many subsidiaries..

Oh, they make the stuff.

It's just that I would expect a nation that loves Heinz Ketchup to love the other products. Instead, when I make Chili, I don't see those Heinz products very often.

That's all.

 

[Moonglow]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Not sure what happens over in Europe but something I’ve noticed here was this:

Heinz Ketchup is probably the most used here in the US.
But when you go to buy canned tomatoes for chili, stew, casseroles or whatever, rarely do you see Heinz as a major players in canned tomatoes; just ketchup.

They make other superior processed foods like Manwich...

Just seems to me like if you're growing a bazillion tomatoes and making what is probably the best major brand ketchup in the country, you'd also have a leg-up in making the best stewed, diced, whole, crushed, sectioned tomatoes in addition to the best tomato puree, tomato sauce, dried tomatoes....etc... Maybe not.

They may since it is such a large corporation and owns many subsidiaries..

Oh, they make the stuff.

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It's just that I would expect a nation that loves Heinz Ketchup to love the other products. Instead, when I make Chili, I don't see those Heinz products very often.

That's all.

We don't get a lot of that brand here but the product is available. There is a Kraft plant in Bentonville, Arkansass..

 

[Dekster]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

May be worth buying if they drop into the upper 20's. They are losing brand loyalty, but at the same time, I saw their new mayo for less than $2 at Walmart today so they may be getting more aggressive in their pricing. It is the only mayo I like as much as kraft flavor wise, though it is a bit thick. Anyway, the more people get used to shopping at discount groceries and buying off brands like seen at Aldi, Lidl, etc, the tougher it will be for name brands. I assume they will get into copacking more products as time passes which will stabilize earnings.

 

[the other mike]

You think Carly Simon ever got tired of performing this song ?

 

[Markle]

Warren Buffet now owns the majority share. That happened when Heinz bought Kraft Foods. Buffet put something like $10 Billion into the deal from Berkshire Hathaway.

The crash in Kraft Heinz has come about because

1. INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against The Kraft Heinz Company and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
7:08 pm ET February 22, 2019 (BusinessWire)

The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Kraft Heinz Company ("Kraft Heinz" or "the Company") (NASDAQ: KHC) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

2. Bragar Eagel & Squire, P.C. Is Investigating The Kraft Heinz Company (KHC) on Behalf of Stockholders and Encourages KHC Investors to Contact the Firm
6:15 pm ET February 22, 2019 (Globe Newswire) Print

Bragar Eagel & Squire, P.C. is investigating potential claims against The Kraft Heinz Company (NASDAQ: KHC). Our investigation concerns whether Kraft has violated the federal securities laws and/or engaged in other unlawful business practices.

3. Kraft Heinz's Goodwill Charge Tops Consumer-Staples Record
5:35 pm ET February 22, 2019 (Dow Jones) Print
By Tatyana Shumsky

The $7.3 billion goodwill impairment Kraft Heinz Co. announced this week is the largest such write-down in the U.S. consumer staples industry in at least decade, according to valuation firm Duff & Phelps LLC.

The size of the hit, disclosed Thursday, is unusual for the sector, which recorded 88 such write-downs between 2013 and 2017 totaling $9.6 billion, according to Duff & Phelps.

"This goodwill impairment alone is greater than that entire sector over the last three years," said Carla Nunes, a managing director at Duff & Phelps.

4. IMHO...in addition to all that, if that wasn't enough, hundreds of the products of Kraft and Heinz have been replaced in past decades. In addition as a country, we're so rich that upper-end grocery stores are opening at a rapid rate. Stores which spurn such products as Heinz catsup and scores of other products. Then again, Amazon has bought Whole Foods a couple of years ago.

 

[Tommy Tainant]

I had no idea that Kool Aid was a real thing.

 

[Dogmaphobe]

I had no idea that Kool Aid was a real thing.

You drink it every fucking day, dude.

 

[Picaro]

Heinz and Kraft is all over Wally World shelves, so no worries there; They get their main competition from Aldi's and other low price and low overhead stores; brand names aren't the big cash cow they used to be, most consumers are breaking away from paying an extra $1-$2 premium just for the name on the label. As for the 'rich botique stores', go ahead, buy yourself a dozen of them. Incomes aren't going to carry but a few of them in any market, while Wally World and Aldi's sell truckloads per day.

Food companies just aren't very sexy; we saw that in the 1980's with RJR/Nabisco; sales and revenue kept rising, stock prices kept falling or remained stagnant. This prompted a buyout LBO, which of course merely saddled it with a lot more debt. IF Heinz is stagnating, just look at how much of the cash flow goes for pay8ing Buffet off for his 'investments'. Probably a lot, enough to kill the business off in a few years.