The Rising Influence of Rising Affluence

[DewDiligence]

Why HNZ is growing so fast in emerging markets:

http://online.wsj.com/article/SB10000872396390443864204577619021807919592.html

Heinz is continuing to exhibit strong sales in emerging markets, where organic sales rose 19.3%. Heinz expects those fast-growing markets to make up about a quarter of its sales this year, even though concerns remain over some slowing down of growth rates in those economies.

…Heinz Chief Financial Officer Art Winkleblack said those worries don't apply as much to Heinz and makers of everyday consumer products as they do to industrial companies. In China, for instance, the slowing of the economy is "more on the industrial side," Mr. Winkelblack said. "Frankly, the exploding middle class is just coming into their own in terms of their ability to afford packaged food."