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Early Success for Heinz Organics - Heinz Celebrates Early Impact of Mainstream Organics Range - - Heinz Takes Commanding Position in Three Key Sectors - - Stage is Set for Soyamilk -

    4 December 2000 -- The new Heinz Organics range has proved an immediate
hit, with major success being enjoyed by each of its main three brands.
    The company already has the best selling organic Baked Beans and Spaghetti
brands on the market, with distribution still at early stages.  As the first
ACNielsen figures available since their October launch also confirm, Organic
Heinz Tomato Ketchup has a 40% volume and 43% value branded share of its
market.
    Nigel Clare, Managing Director, Heinz European Grocery, said: "These are
excellent results.  Trust is key, and consumers have taken the new products to
their hearts.  Our organic brands are already all performing as strongly as
anything you would expect from the Heinz portfolio."
    Heinz Organic Spaghetti sales are currently outstripping those of its
rivals, with more than two cans sold for each can of the nearest competitor.
The rate of sale for Organic Baked Beans is no less impressive, either.
Again, the Heinz brand is ahead of its established competitors.
    Clare said: "Whenever you approach a new market you need to be fully
sensitive to consumer expectations.  At Heinz we are keen to approach the
organics market in a spirit of partnership, and are alive to consumer
concerns. We are pleased that consumers seem to understand that our range is
founded upon integrity, and a belief in respecting our environment."
    The UK organics market is worth 570 million British pounds sterling
(ACNielsen), with 60% of all sales currently stem from only 7% of organic
consumers.  However, ACNielsen calculations project a future market value of
2 billion pounds by 2003, with 40-50% year on year growth forecast for each of
the next five years.
    Clare said: "The scene is now set for even broader success.  We will drive
growth with our three mainstream Heinz grocery Organics brands - and with
Heinz Soyamilk too.  It's a powerful quartet."
    Made under licence by Haldane Foods, Heinz Organic Vanilla and Heinz
Sweetened Added Calcium were launched in November.  Heinz plans to fuel growth
by appealing to consumers keen to reduce their dairy intake and cut down on
both fat and cholesterol.   Both ambient products have shelf lives of six and
ten months respectively.
    Heinz is looking further afield too, however.  Clare said: "We want to
help spread the organics message beyond our grocery category.  Our first
organic baby food products, for instance, have only been on the shelves since
September, but are already very popular.  The Kitchen Garden range, which
includes the first organic choice from Linda McCartney, has been equally well
received."

    Editor's Note: Heinz Organics Product information
    Heinz Tomato Ketchup            460g     1.27 pounds    MRRP (squeezable
                                                                 bottle)
    Heinz Baked Beans               415 g    0.49 pounds    MRRP
    Heinz Spaghetti                 400g     0.49 pounds    MRRP

    Heinz Organic Soya: Vanilla     1 litre  1.55 pounds    MRRP
    Heinz Soya: Sweetened Calcium   1 litre  1.55 pounds    MRRP

    Linda McCartney Kitchen Garden:
    4 x Vegetable Burgers           340g     1.69 pounds    MRRP
    4 x Spicy Bean Burgers          340g     1.79 pounds    MRRP
    2 x Vegetable Grills            340g     1.29 pounds    MRRP
    2 x Vegetable Pies              354g     1.29 pounds    MRRP
    2 x Leek & Potato Pasties       340g     1.69 pounds    MRRP

    Heinz Organic Baby Food*        125g     0.59 pounds    MRRP

    [*The Heinz Organic Baby Food range consists of 12 SKUs: Apple Puree;
Apple & Apricot; Pear & Banana; Peach & Pear; Apple  & Blueberry; Mixed
Fruits; Vegetables with Beef; Carrots and Parsnips with Chicken; Pea and
Parsnip; Carrots and Sweetcorn; Carrots, Parsnips and Peas; Garden
Vegetables.]

    For further information, please contact Heinz Press Office
    Christian Cull/Angharad Powell/Claire Willis-McNeilly
    020 7298 6514/020 7298 6508/020 7298 6505


SOURCE H. J. Heinz Company




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