Kraft Heinz delays the announcement of long-term turnaround plan, shares tumble
Source CNBC News
Kraft Heinz said Thursday it would be pushing back the unveiling of its turnaround plan from March to May.
announcement came as the company saw its sales decline in the fourth
quarter, despite higher prices. Net sales fell 5.1% to $6.54 billion,
missing Wall Street's estimates of $6.61 billion.
also disclosed impairment charges of $666 million, including writing
down the value of its Maxwell House trademark by $213 million.
People familiar with the matter told CNBC that the Oscar Mayer owner had put the coffee brand up for sale last year but encountered tepid interest
from potential buyers. Private equity buyers were wary of the
investment needed to reinvigorate the brand and corporate buyers were
unexcited about packaged coffee as more and more people get their
caffeine on the go or through premium machines like Nestle's Nespresso.
company's stock, which has market value of $33.7 billion, fell 7% in
afternoon trading on Thursday. Shares have fallen more than 41% over the