March 4/Pittsburgh, Pa./News Sentinel -- H.J. Heinz is increasing its global reach by acquiring a majority stake in a Brazilian company that makes ketchup. The purchase of 80% of S.A. Industrias Alimenticias gives Heinz an entry into one of the largest emerging markets. Industrias Alimenticias sells tomato sauce and ketchup under the Quero label.
Heinz did not disclose how much it was paying for the stake, but it did say it was paying with cash. The news came as Heinz also reported that its fiscal third-quarter earnings rose 20%. The profit beat the forecasts of financial analysts. The company also said its revenue rose 2%.
Heinz said its recent price increases contributed to its earnings gain. The company, like other food makers, notes it has raised prices to keep up with higher ingredient costs.
From the March 21, 2011, Prepared Foods E-dition