(Corrects paragraph 1 and headline to remove reference to profit miss; Corrects paragraph 5 to say earnings were above estimates, not below)
(Reuters) -Kraft Heinz missed quarterly sales estimates on Wednesday as inflation-hit customers bought fewer packaged meals and condiments, discouraged by higher product prices.
U.S. packaged food makers have kept their product prices higher for more than two years to shield their margins from a surge in costs of labor, raw materials and transportation, but the benefits are starting to fade as consumers grow more price-conscious.
During the quarter, Kraft’s volumes fell 7 percentage points from last year as customers hunted for cheaper alternatives for its ready-to-eat meals and snacks, sauces and cooking essentials, and traded down to private-label brands.
The Heinz ketchup maker’s net sales rose to $6.72 billion in the second quarter ended July 1, from $6.55 billion last year. Analysts on average had expected $6.81 billion, according to Refinitiv IBES data.
It logged adjusted earnings of 79 cents per share for the quarter, above analysts’ estimate of 76 cents per share.
(Reporting by Savyata Mishra in Bengaluru; Editing by Milla Nissi)
