Question

Heinz makes most of its money from ketchup and​ prepared, packaged foods that are substitutes for fresh foods. Revenue tends to be low in the second quarter​ (May, June, and​ July). Can you provide a possible reason for this​ pattern? ​(Hint​: Fresh fruits and vegetables are substitutes for many Heinz prepared​ foods, and ketchup is commonly used on food prepared at outdoor​ cookouts.) Revenue for Heinz tends to be low in the second quarter because

Answer 1

Revenue in the second quarter tends to be low, because in late spring and in summer, fresh produce (fresh fruits and vegetables) tend to be plentiful, because this is a harvest period.

Because the products that Heinz makes are substitutes for fresh produce, in this period, people flock to the fresh produce. For example, people buy tomatoes to make tomatoe sauce at thome instead of buying Ketchup.