Price hikes from Kraft Heinz have backfired, as cash-strapped Americans cut out big brands and turn to cheaper alternatives. The company reported a decline in sales that outweighed the additional revenue it generated from raising prices last year. The third biggest maker of food and drinks in the U.S. said its prices were 3.7% higher over the final 3 months of 2023 compared to the year before, but the number of products it sold was down 4.4%, causing the company to suffer its third earnings miss in a row. Similarly, Coca-Cola admits that its sales are down as well. Consumers are looking for value, and what the data is showing is that they will turn a blind eye to brand loyalty if it means lowering their grocery bill.
