The 57 Varieties -
Key Categories for Growth
Heinz has focused its growth strategies on product categories where it possesses unique opportunities and strengths. The company's goal is clear: world leadership in foodservice, infant foods, ketchup and condiments, pet food, tuna, and weight control.
Foodservice - Heinz's
Number-One Business
Heinz's global foodservice business
adds up to more than $1.2 billion. Foodservice is now Heinz's number-one business. The company is America's largest supplier of prepared food to the foodservice market and number one in single-serve varieties. Heinz offers a vast range of items - including ketchup, single-serve condiments, frozen soups, sauces, baked goods and tomato products - to away-from-home eating establishments. Heinz ketchup is found in four out of five U.S. restaurants, increasingly in single-serve packets. Each year, it sells a whopping 11.4 billion portion-control packets.
In Europe, Heinz is one of the largest suppliers of
single-serve products, having acquired the popular Frank Cooper's brand in 1997. Heinz's goal is to
double the size of its European foodservice business over the next five years.
International Leader in Infant Nutrition
Infant foods are a $900-million business for Heinz, which enjoys strong franchises in North America, Europe and Asia/Pacific. With rising standards of
living and high birth rates in many developing markets, Heinz looks forward to sales of $1.4 billion in three years. Heinz sells more than 86%
of its baby foods outside the United States through trusted brands, such as Plasmon, Dieterba, Nipiol, Wattie's, KK, Sunar, Farley's and Heinz. Market shares are impressive: 90% in Italy; 93% in Canada; 50% in Australia; 35% in the United Kingdom; and 18% in the United States, where Heinz sales are well over $100 million.
In the United Kingdom, the 1994 acquisition of the Farley's brand doubled Heinz's infant foods business. The recent acquisition of Earth's Best, the leading U.S. organic baby foods company, opened the door for Heinz to
a growing, value-added niche market.
In Eastern Europe, Heinz is stringing together a network of plants and products. Cereals,
for example, are sourced from Russia; jarred strained foods, from Hungary; and infant formula, from the Czech Republic. Total annual sales in this region are well on their way to $100 million.
In India, the company recently bought Farex baby foods and a line of nutritional drinks.
Ketchup From One of the World's Largest
Buyer of Tomatoes
Heinz ketchup, 120 years young, continues to pour
on the profits. The company sells nine billion ounces of ketchup around the world. In the United States, about half of all retail ketchup sales are Heinz. Last year, Heinz U.S.A. increased its profitability on retail ketchup alone by $20 million. At the same time, ketchup shares are up in Belgium, Denmark, France and Scandinavia. Heinz's European ketchup business
is amply supplied by tomato paste production facilities in Portugal and Greece. Last year, Heinz acquired Pudliszki, the largest ketchup brand in Poland.
In addition to ketchup, Heinz is celebrated for a
multitude of other sauces, chutneys, and condiments - with many sold under other brands, such as Wellington's in South Africa. They are offered even
by affiliates in such far-flung locales as Thailand
and Zimbabwe.
Pet Food Sales Top $1 Billion
Heinz Pet Products, with more than $1 billion in sales, is the joint number-two company in the U.S. pet food business. Heinz's 9-Lives canned cat food (with the leading market share) has long been a flagship brand. Other popular lines are Amoré cat food and Reward, Kibbles 'n Bits, Gravy Train, Cycle, Ken-L Ration
and Skippy dog foods. Its Bloomsburg, Pennsylvania facility, after an investment of close to $70 million,
is the most modern and cost-efficient in the world. Recently, the company took a stronger position in higher-growth, higher-margin segments while acquiring Nature's Recipe. The fourth-largest specialty brand in America, Nature's Recipe is sold primarily through pet shops and pet superstores.
Looking ahead, Heinz Pet Products is ready to
expand its geographic reach. Heinz already owns the BestFriend and Bruno pet food brands, both market leaders in New Zealand. And recently, Heinz acquired a majority stake in an Argentine pet food producer, Alimentos Pilar, and signed a similar agreement for four prominent brands in South Africa. In Russia, Heinz now sells 9-Lives cat food featuring the popular Morris the Cat.
Heinz also holds a solid position in pet treats and snacks with Meaty Bone, Jerky Treats, Pounce, Snausages, and Pup-Peroni.
Tops in Worldwide Tuna
Heinz accounts for 20% of global branded tuna sales and is the world's largest purchaser of tuna. StarKist's unmatched assets include: a procurement network stretching from the Pacific to the Atlantic and Indian Oceans; a string of strategically located canneries
in American Samoa, Ecuador, Puerto Rico, Ghana, Portugal, France, the Seychelles and Australia;
consumer markets in Asia/Pacific, Europe and the Americas; and powerful brands - StarKist, John West, Petit Navire, Greenseas, Wattie's, Heinz and Mareblu. In North America, television pitchman Charlie the Tuna long ago propelled the StarKist brand into the number-one market position, with
a nearly 50% share.
Counting Calories Around the Globe
Weight Watchers is the gold standard for weight loss in the U.S. and elsewhere. Since its inception 35 years ago, Weight Watchers has taught more than 25 million members how to lose weight. Each week, more than one million people attend Weight Watchers meetings from Estonia to Brazil and England to South Africa.
Heinz markets an array of Weight Watchers brand frozen products in the U.S., Europe and Australia. The Budget Gourmet brand frozen meals complements the range of Weight Watchers brand frozen entrees and desserts sold in the U.S.
Other Leading Brands Complete the Heinz Portfolio
Heinz's other leading brands are soups in the United Kingdom, Australia, New Zealand, Canada and Ireland; retail frozen potatoes, snacks and pasta in
the United States; beans and pasta in the United Kingdom; oils in Zimbabwe; and poultry in New Zealand. Collectively, they represent 28% of Heinz's worldwide sales.
Ore-Ida sells the popular Tater TotsTM. Among its growth engines are Bagel Bites snacks and Rosetto brand pasta.
Heinz brands in the United Kingdom remain exceedingly popular, particularly Heinz soups and the English favorite, Heinz baked beans. In Asia/Pacific, the world's fastest-growing consumer market, Wattie's is the largest supplier to New Zealand grocers and enjoys a growing export trade to Australia and Japan.
Attention to Strategy, Cost, Quality
Heinz maintains one of the best balanced portfolios - in terms of geography and product mix - in the food industry. At least 24 of the company's products and brands record more than $100 million each in annual sales. What's more, products with the number-one share position in their respective markets generate approximately 58% of company sales.
This strategy, which strives always for superior return to Heinz shareholders, is reflected in the company's recent restructuring program, known as Project Millennia. The program is designed to increase sales, to strengthen brand leadership, to bolster productivity, to reduce costs, and to improve factory utilization. It consolidates Heinz's position as a world leader in its core categories and is helping Heinz maintain double-digit earnings into the 21st Century.
Superior Return
With its diversified portfolio of internationally renowned brands, its strong balance sheet and its aggressive, goal-oriented management, H. J. Heinz Company is well positioned for continued growth.
Heinz Products With More Than
$100 Million
in Sales*
Heinz baby foods
(North America)
Heinz beans (U.K.)
Heinz ketchup (Europe)
Heinz ketchup (U.S.
foodservice)
Heinz ketchup (U.S.
grocery)
Heinz single-serve
condiments (U.S.)
Heinz soups (U.K.)
Heinz and Farley's
baby foods (U.K.)
Kibbles 'n Bits dry dog
food (U.S.)
9-Lives cat food (U.S.)
Olivine soaps and oils
(Zimbabwe)
Ore-Ida frozen potatoes
(U.S.)
|
Petit Navire tuna
(France)
Plasmon biscuits (Italy)
Plasmon strained baby
foods (Italy)
Private Label pet food
(U.S.)
Private Label soups (U.S.)
StarKist light meat
tuna (U.S.)
StarKist white meat
tuna (U.S.)
Tegel chicken (New
Zealand)
The Budget Gourmet
frozen entrees (U.S.)
Wattie's food products
(New Zealand)
Weight Watchers
frozen entrees (U.S.)
Weight Watchers
meetings (U.S.)
* alphabetical order |
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