The Heinz brand seems to be on the decline and one analyst has an idea why.
Tony Chapman tells AM800's The Afternoon News losing that "good feeling" shoppers get from buying a product is something brands may never recover from.
"So much of the value is locked into this intangible called 'goodwill,'" says Chapman. "Do they walk around saying, 'I feel better about myself when I've got a can of Pepsi or a can of Coca-Cola in my hand?' When that starts waning, that's where the goodwill starts eroding."
As heard on AM800 News, the 20th edition of an annual Leger study ranking corporate reputations shows Heinz has slipped from the number two ranking in 2016 to 23rd in 2017. The study points to company uncertainty and upheaval after plant closures and layoffs.
The ranking drop comes after Heinz laid off more than 700 people in ending its operations in Leamington after over 100 years in the town.
Chapman says public perception is huge.
"Heinz has become a very different company," says Chapman. "It's now owned by 3G, which is a Brazilian company. They're ruthless, they're take no prisoners, everything's focused on cost and you can see the same brand results happening with another company they bought: Tim Hortons."
He says consumers are willing to pay more for a brand that stands for something and Heinz has lost that perception in the public's eye.
"They lose their identity, their culture, the soft side of the business just doesn't matter to them as much, if its an expensive item," says Chapman. "When you say you're closing a plant you don't see people, but when you say you're taking business away from farmers, that becomes more personal."
For a fifth straight year, Google topped Leger's corporate reputation ranking in Canada while Tim Hortons, Dollarama, Staples and Sony rounded out the top five.