The beginning of ketchup mac and cheese could mean the end of Jell-O.
The recently announced merger between Kraft Foods and H.J. Heinz Co. could leave some poorly performing brands in the lurch, including the childhood favorite Jell-O, according to the Chicago-based investment research firm Morningstar.
"Despite multiple stabs at putting the Jell-O brand on more stable ground ... the business continues to falter. We think management may now opt to reallocate investment dollars toward more profitable initiatives," Erin Lash, a senior equity analyst for Morningstar, said in a report.
Heinz, which is based in Pittsburgh, announced it was buying Illinois-based Kraft Wednesday. The company will acquire all Kraft brands, including Capri Sun, Cool Whip, Kool-Aid, Oscar Mayer and Philadelphia Cream Cheese.
The companies plan to close the deal in the second half of this year.