...Rating and Sector Outlooks Stable: Fitch Ratings believes most packaged food companies have strong FCF and liquidity, allowing them to maintain leverage appropriate for the ratings in a still-difficult environment. Food companies will focus on accelerating weak top-line and volume growth with product innovation that resonates better with today's increasingly health- conscious consumers. However, growth may again prove elusive in a mostly low input cost environment that does not allow for much pricing, and a still-heightened promotional environment. U.S. Improvement, Eurozone Weakness: Fitch expects modest improvement in the U.S. operating environment based on projected higher U.S. GDP growth, lower unemployment and gas prices. These should combine to provide a lift to low- and middle-income consumers grocery spending, as well as improved foodservice results. The eurozone trading environment remains weak as consumer confidence remains fragile, unemployment is high coupled with geopolitical...
