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H.J.Heinz Company is all set to introduce a range of smaller-sized and less expensive products in order to boost sales in a sluggish economy. The company will also re-introduce baked beans back to the U.S. market.
Consumers often switch to lower priced products, even though they are more expensive per unit, during times of recession to cut down on overall costs. This move is in line with the string of measures taken by companies around the world as uncertainty looms over the health of the global economy. Heinz competes with major food and consumer companies like Kraft Foods, Tyson Foods, ConAgra Foods and Campbell Soup Company.
The company is launching several products with a price tag of 99c and $1.99. According to Bill Johnson, Heinz’s Chief Executive, one-third to one-half of unit purchases in several categories in the U.S. consist of lower priced SKUs as more consumers now buy week-to-week to stretch their food dollars. These products will also help the company target households with annual income of less than $50,000.  Some of the U.S. products include a 10 oz pouch of Heinz Ketchup, a 9-oz pack of yellow mustard and cans of Home Style Beans, all of which will cost 99c. In Europe too, the company will launch several products priced at €1