Analysts say a $15.4 billion write-down for food giant Kraft Heinz reflects changing consumer taste for fresh food products over processed ones.
The company said Thursday the decrease in value of some of its major brands resulted in a net loss of $12.6 billion.
Kraft Heinz also announced Thursday the Securities and Exchange Commission had subpoenaed it late last year because of its procurement procedures.
At the end of the business day Thursday, the company saw its stock drop about 20 percent.
“We expect to take a step backwards in 2019,” Chief Financial Officer David Knopf said in a post earnings conference call. He promised “consistent profit growth” for 2020.
Kraft Heinz is the home of such iconic brands as Velveeta Cheese, Heinz ketchup brands, Oscar Mayer hotdogs and Cheez Whiz.