Narrows 2024 organic sales, profit and margin forecasts
Posts biggerthanexpected drop in Q3 net sales
Expects slower recovery in Lunchables due to negative publicity
Shares down more than 3 in early trade

Oct 30 Reuters Kraft Heinz on Wednesday tempered its annual forecasts for organic sales and profit as repeated price hikes hurt demand for the packaged food giant39;s branded products such as Lunchables meal kits.

Shares of the JellO maker fell more than 3 in early trading, as it also posted a biggerthanexpected drop in revenue for the third quarter.

Steep declines in a few brands are holding back overall results. Lunchables, in particular, has been the largest drag on sales, and Kraft Heinz may need to accelerate investments to turn this business around, said CFRA Research analyst Arun Sundaram.

Company executives said the negative publicity surrounding Lunchables appears to be lingering longer. Earlier in April, a consumer watchdog group warned that the kid39;s meal kit brand contained too much lead and sodium.

Earlier this month, Reuters reported Brazilian meatpacker JBS and Mexico39;s Sigma Alimentos were among bidders competing to acquire Oscar Mayer, which includes Lunchables.

Kraft Heinz expects a slower recovery for the brand due to an upstream supplier issue that led to a 15 quarterly decline in sellout, or sales to consumers at retailers.

Following price hikes over the last few years, Kraft Heinz has turned to promotions as valueseeking consumers…