Growth in five key emerging markets – Russia, Indonesia, China, India and Poland and a strategic focus on health and wellness products should contribute to dramatic growth in the next year. Additionally, the company has committed to increasing advertising as a percentage of sales from 6% to 9% by 2009, which should raise brand awareness and raise sales.Kellog and Kraft: Hiking Up Advertising Spending.
Although commodity prices have fallen, Heinz does not expect to reduce retail prices. This is because prices are sticky - consumers adjust to higher prices and don't expect them to fall when input prices decrease. Heinz will be able to profit from the spread between falling input prices and rising retail prices.