If you’re a fan of Jell-O, it may be time to stock up. One analyst thinks we could soon be seeing the end of the jiggly, fruity treat forever.
Morningstar analyst Erin Lash suggested that Jell-O could be among the casualties of the Heinz-Kraft merger plans announced earlier this week, MarketWatch reports.
“Despite investments to try and turn around the brand,” Lash said, “it just doesn’t seem to be winning over consumers, for whatever reason.”
Some disagree. Kraft VP of Corporate Affairs Russ Dyer defended the product:
“Jell-O is, with more than $500 [million] in annual sales, [owns] leading share position in the ready-to-eat and dry packaged desserts category, and extremely strong brand awareness and equity,” Dyer said in a statement to MarketWatch.
Kraft posted a 6.6% decline in revenue in the fourth quarter, reporting a net loss of $398 million and missing Wall Street Expectations. The proposed merger with Heinz could help the struggling snack company turn around, Coins2Day’s Phil Wahba writes.