Canaccord Genuity downgrades Kraft Foods Group rating
date:Nov 01, 2013
rply in recent weeks and management sounded cautious about the consumer environment. It is reassuring that Kraft's cost savings and innovation programmes remain on track, but the retail environment is still very promotional resulting in negative pricing-net-of-cost at group level. As a result, the payoff from marketing investments is going to be slower. The upcoming SNAP funding cuts of $5bn in November are likely to add pressure to the roughly 15% of American consumers dependent on food stamps.
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