There is not a single house in North America that doesn't have a Heinz product in it. I actually have to buy their brand when buying these categories of products, that is because their recipe is way better. This kind of trademark force is what pushed Coke for so long. In this times of economic uncertainty, I feel confident that Heinz will retain most of their retail and institutional clients. For the retail clients, it's clearly the taste of the product that makes it. For the institutional clients, that is the prestige that Heinz's logos bring to another product. This counts, but the real reason why I have a buy rating on this company is that the stock is just setting new 5-year highs and the stock is currently pulling back to create a buy opportunity.
$50.41 (08/30/08)
