Pinnacle Foods Market Analysis

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Pinnacle Foods LLC - Market Analysis Robin L. Cook University of Texas at Dallas 1 I. Company Summary A. Industry Consumers have become increasingly demanding of food products in recent years, often expecting meals and snacks that go beyond the basic need of satisfying hunger. Today’s consumers expect their food to taste good, while still offering some or all of the following characteristics: low calorie, vitamin and mineral rich, energy boosting, among many other perceived health benefits. In response to this demand, major food companies have refocused their best product lines and are selling off/discontinuing products that don’t resonate with consumers or fit into this healthy lifestyle model. Pinnacle Foods Group LLC is a manufacturer, marketer, and distributor of high-quality, branded convenience food items in North America. They had annual net sales of $2.5 billion in fiscal 2012 bringing in $52.5 of that as income. The company’s total assets equal $4.5 billion and liabilities come in at $3.5 billion. Pinnacle brands are leaders in many of their respective categories, holding the #1 or #2 market share position in 10 of the 12 major product categories they compete in. They have strong household penetration and can be found in approximately 85% of US households ( For more detailed financial information see Appendix A. As food companies shift their focus to meet consumer demands, the industry is growing at a phenomenal pace. In 2011 the Packaged Food industry ranked number one out of the sixteen industries annually measured by Standard & Poor’s. Population growth, increased consumer spending power, and expansion of modern retail formats is all contributing to this increase. This is a $360 billion dollar industry globally ("Euromonitor international"). For more information see Appendix B. B. Firm Growth 1. Sales Growth 2 Pinnacle

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