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Regardless of its $one billion in U.S. yearly revenues, Planters Nuts nonetheless expert a drop in its unit product sales and residence penetration in the last a number of yrs. Together with the change of preference from peanuts, cashews, and combined nuts, Planters' main solution classes, to almonds and pistachios, Planters will have to make a decision regarding how to redeem its gross sales losses and irrespective of whether to shift from its regular products nut categories into newer ones to keep up With all the competition.
We must also contain the erosion of Jell-O income to be a unfavorable dollars circulation from the analysis. The cannibalization can have a unfavorable impact on the profitability of Jell-O, and when this is not included, the NPV are going to be overestimated.
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