July 31 (Reuters) - Kraft Heinz ( KHC ) slashed its

organic sales forecast for the full year on Wednesday, in a sign

that higher prices of its snacks and ready-to-eat meal kits will

pressure consumer demand for the rest of the year.

Packaged food companies such as Kraft Heinz ( KHC ), Conagra

and General Mills ( GIS ) are contending with slowing demand

after price hikes over the last two years dampened appetite in

the key markets of North America and Europe, particularly for

lower-income groups.

"Our second-quarter net sales growth came in lower than

originally anticipated, as consumer sentiment remains cautious,"

said CEO Carlos Abrams-Rivera.

The company now expects "a more gradual top-line

improvement" in the back half of the year. In May, it had said

volumes were expected to turn positive in the second half of the

year.

Overall volumes for the quarter fell 3.4 percentage points,

while prices rose 1.0 percentage point across Kraft Heinz's ( KHC )

portfolio.

That compares to a 7 percentage point decline in volumes

last year, when prices rose 11 percentage points.

The Heinz ketchup maker posted net sales of $6.48 billion in

the three months ended June 29, missing analysts' average

estimate of $6.55 billion, according to LSEG data.

However, its adjusted earnings-per-share of 78 cents was

above analysts' estimate of 74 cents per share.

Shares of the company were down marginally in volatile

trading before the bell.

It reaffirmed its profit forecast but now expects fiscal

year 2024 organic net sales to be flat-to-down 2%, from its

prior forecast of flat-to-2% growth.