HJ Heinz announced it has clinched a deal to acquire an 80 per cent stake in Coniexpress S.A. Industrias Alimenticias, a leading Brazilian manufacturer, and maker of the Quero brand of tomato-based sauces. According to Bloomberg, Heinz, along with other U.S. food companies like Kraft Foods Inc. (KFT), is looking to boost sales abroad to counter slower growth at home.

Heinz Chairman, President and CEO William R. Johnson, said the Quero brand is a natural fit with the global capabilities of Heinz and gives the firm a scalable growth platform in Brazil, a key Emerging Market with nearly 200 million consumers and a growing economy. Johnson said the transaction is another significant step in Heinz’s Emerging Markets strategy.

With Quero, Heinz will be well positioned in the key Emerging Markets of Brazil, Russia, India, and China as well as Indonesia, he said. Johnson expects the Quero business to approximately double Heinz’s sales in Latin America in the first full year. HJ Heinz has a potential upside of 6.4 per cent based on a current price of $48.98 and an average consensus analyst price target of $52.11.

H.J. Heinz Company manufactures and markets processed food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other processed food products.

The company recently reported its third quarter earnings, with revenues for the quarter going up 1.5 per cent to $2.72 billion, also slightly above consensus estimates of $2.71 billion. The company reiterated guidance for its full year 2011, which ends April 27 of this year, with EPS estimated in the range of $3.04 to $3.10, vs. consensus estimates of $3.09 per share.

Heinz Chief Executive Officer Bill Johnson said at an investor conference last week that the company plans to generate at least 30 per cent of total sales from emerging markets by 2016, up from a previous target of 25 per cent. Countries like China, Russia, and India currently make up 16 per cent of sales.

Heinz said it plans to expand Quero into supermarkets and other outlets larger than the independent stores and shops where the brand is sold. It plans to increase marketing and use its technical expertise to drive Quero’s growth, while using the brand’s position in stores to sell Heinz’s other products in Brazil, said Bloomberg.