H. J. Heinz Company

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H. J. Heinz Company
Type Private
Industry Food processing[1]
Fate Acquired (June 07, 2013)
Founded Sharpsburg, Pennsylvania (1869 (1869))
Founder(s) Henry John Heinz
Headquarters Pittsburgh, Pennsylvania, United States
Area served Worldwide
Key people Bernardo Hees, CEO
Revenue Increase US$ 11.64 Billion (2012)[2]
Operating income Increase US$ 1.45 Billion (2012)[2]
Net income Increase US$ 923 Million (2012)[2]
Total assets
  • Increase US$ 12.939007 billion (2013) [3]
  • Decrease US$ 11.983293 billion (2012) [3]
Total equity Decrease US$ 2.88 Billion (2012)[4]
Owner(s)
Employees 32,200 (2012)
Divisions
  • North American Consumer Products
  • U.S. Foodservice
  • Europe
  • Asia Pacific
  • Rest of World
[5]
Website heinz.com

The H. J. Heinz Company, also known as the Heinz Company and commonly known as Heinz and famous for its "57 Varieties" slogan and its ketchup, is a United States food processing company with world headquarters in Pittsburgh, Pennsylvania.

The H. J. Heinz Company manufactures thousands of food products in plants on six continents, and markets these products in more than 200 countries and territories. The company claims to have 150 number-one or number two-brands worldwide.[citation needed] Heinz ranked first in ketchup in the US with a market share in excess of 50%; Ore-Ida label held more than 50% of the frozen-potato sector.[citation needed]

On February 14, 2013, Heinz agreed to be purchased by Berkshire Hathaway and 3G Capital for $23 Billion.[6]

History[edit]

19th-century origins[edit]

Heinz trade card from the 19th century, promoting various products. Features the Heinz pickle.

Founder Henry J. Heinz began packing foodstuffs on a small scale at Sharpsburg, Pennsylvania, in 1869.[7] There he founded Heinz Noble & Company with a friend, L. Clarence Noble, and began marketing horseradish. The company went bankrupt in 1875, but the following year Heinz founded another company, F & J Heinz, with his brother John Heinz and a cousin Frederick Heinz. One of this company's first products was tomato ketchup.

The company continued to grow, and in 1888 Heinz bought out his other two partners and reorganized the company as the H. J. Heinz Company. Its slogan, "57 varieties", was introduced by Heinz in 1896. Inspired by an advertisement he saw while riding an elevated train in New York City (a shoe store boasting "21 styles"), Heinz picked the number more or less at random because he liked the sound of it, selecting 7 specifically because, as he put it, of the "psychological influence of that figure and of its enduring significance to people of all ages."[citation needed]

20th century[edit]

H. J. Heinz was incorporated in 1905, and Heinz served as its first president, remaining in the position for the rest of his life. Under his leadership, the company pioneered processes for sanitary food preparation, leading a successful lobbying effort in favor of the Pure Food and Drug Act in 1906. During World War I, he worked with the Food Administration.[7]

In 1969, Tony O'Reilly joined the company's UK subsidiary, soon becoming its managing director; he moved to Pittsburgh in 1971 when he was promoted to Senior Vice President for the North America and Pacific region, and by 1973, R. Burt Gookin and Jack Heinz made him COO and President.[citation needed] He became CEO in 1979 and chairman in 1987,[citation needed] succeeding Jack and becoming the first non-family member to hold that post.

Heinz Oven-Baked Beans newspaper ad from 1919.

Between 1981 and 1991, Heinz returned 28% annually, doubling the Standard & Poor's average annual return for those years.[1] By 2000, the consolidation of grocery store chains, the spread of retailers like Walmart, and growth of private-label brands caused competition for shelf space, and put price pressure on the company's products.[1] The decline was also attributed to an inadequate response to broad demographic changes in the United States, particularly the growth in population among Hispanic Americans and African Americans.[1]

Tony O'Reilly left Heinz in 1998 after issues with the company's performance, and challenges from corporate governance groups and pension funds including CalPERS.[8] He was succeeded by his deputy, William R. Johnson.[citation needed]

21st century[edit]

Billionaire Nelson Peltz initiated a proxy battle during 2006, culminating in a vote to place Peltz's nominees on the Board, which, depending on how many seats the dissident group received after the final vote tally, would displace some of the current board members. After the final vote, 2 out of the 5 nominees joined the Heinz Board. The new members of the board were Nelson Peltz and Matthew Craig Walsh.

In June 2008, Heinz began an advertising campaign in the UK for their new 'New York Deli Mayo' products. The advertisement featured a family with the mother replaced by a male New York deli worker. The advert ended with the father and the 'mother' kissing. This drew 200 complaints to the Advertising Standards Authority.[9] On June 24, 2008 Heinz took the decision to withdraw the advertisement, which was initially supposed to run for five weeks. A spokesperson for Heinz stated that the reason for the withdrawal was recognition of the fact that some of its customers had concerns about the advertisement's content.[10]

Withdrawing the advert caused further controversy with Heinz being accused of homophobia.[11] The gay rights group Stonewall called for a boycott of the company's products. Some have expressed surprise that Heinz has responded to what they view as a small number of complainants, relative to the United Kingdom's 3.6 million gay and lesbian consumers.[12] MP Diane Abbott called the decision to withdraw the advert 'ill-considered' and 'likely to offend the gay community' in an Early Day Motion on June 25.[13]

On February 14, 2013, it was announced that Heinz would be purchased by Berkshire Hathaway and 3G Capital for $23 billion.[14] Including debt assumption the transaction is valued at $28 billion.[14] According to Heinz, the deal is the largest in food industry history.[14] Berkshire Hathaway and 3G will each own half of Heinz with 3G running the company.[15] Berkshire and 3G paid $72.50 a share.[16] The acquisition was completed in June of that year. Berkshire and 3G immediately named former chief executive of Burger King Worldwide Inc, Bernardo Hees, as the CEO.[17]

On August 13, 2013, Heinz announced it was cutting 600 jobs in North America.[18]

On October 25, 2013, fast-food chain McDonalds announced it would end its 40-year relationship with Heinz, after CEO Hees took office. Investment company 3G Capital which at the time partially owns Heinz also owns a portion of McDonald's competitor, Burger King.[19]

Brands[edit]

H. J. Heinz Company
HeinzCompanyPittsburghPA.jpg
The Heinz Company has operated at this location in Pittsburgh, Pennsylvania, since 1890.
Location Roughly bounded by Chestnut Street, River Avenue, South Canal Street, Progress Street and Heinz modern Manufacturing Facilities, (Troy Hill), Pittsburgh, Pennsylvania
Built 1890
Architect Heinz Engineering Dept., et al.
Architectural style Romanesque Revival, Beaux Arts
Governing body Private
NRHP Reference # 02000774[20]
Added to NRHP July 10, 2002

International presence[edit]

United States[edit]

The company's world headquarters are in Pittsburgh, Pennsylvania, where the company has been located since 1890, and the company's "keystone" logo is based on that of Pennsylvania, the "keystone state". A majority of its ketchup is produced in Fremont, Ohio. Heinz Field was named after the Heinz company in 2001. Heinz opened a pickle factory in Holland, Michigan, in 1897, and it is the largest such facility in the world.

Heinz has factories in the following locations:[citation needed] Arizona (Phoenix); California (Chatsworth, Escalon, Irvine, San Diego); Florida (Jacksonville, Fort Myers); Idaho (Pocatello); Iowa, (Cedar Rapids, Muscatine); Massachusetts (Newburyport); Ohio (Mason, Massillon); Oregon (Ontario), and South Carolina (Florence).

In 2000, seven retailers—including Walmart, Albertsons, and Safeway comprised half of the company's sales by volume.[1]

Australia[edit]

Heinz-Watties factory in Wagga Wagga, New South Wales.

Heinz Australia's head office is located in Melbourne.[21] Products include canned baked beans in tomato sauce (popularized in the "beanz meanz Heinz" advertising campaign), spaghetti in a similar sauce, and canned soup, condensed soup, and "ready to eat" soups.[citation needed]

Heinz manufactures "Big Red" tomato sauce, and a number of flavored baked bean varieties, as well as canned meals. Not all products are produced in Australia, products such as Heinz ready to eat microwave bowl soups are imported into Australia.[citation needed] Heinz also markets the Wattie's brand of canned foods, which are made in New Zealand.

On October 6, 2008, Heinz announced plans to acquire Golden Circle[22] which "manufactures more than 500 products, including canned fruit and vegetables, fruit juices, drinks, cordials and jams."[22]

On May 27, 2011, Heinz announced it would close its factory in Girgarre, Victoria and downsize its factories in Northgate (Brisbane), and Wagga Wagga, with loss of more than 300 jobs.[23][24] Heinz has other factories in Echuca and Mill Park.[21]

On January 6, 2012, Heinz closed its tomato sauce factory in Girgarre as announced in May. 146 workers lost their jobs.[25] A local group was seeking to purchase the factory and start its own production, with offers of financial assistance from investors,[26] The group's first offer for the site was rejected by Heinz. Girgarre was the second last tomato sauce factory in Australia,[27] and its closing brought an end to Heinzs' 70 years of Australian tomato processing operations.[25]

Canada[edit]

Heinz was established in Canada in 1909 in a former tobacco factory in Leamington, Ontario (Tomato Capital of Canada). Most products shipped from Leamington have English and French labels for distribution throughout Canada, but a substantial amount of product is sent to the US. Ketchup is the main product produced there, but the factory also produces Canada Fancy (Grade A) tomato juice, mustard, vinegar, baby food, BBQ sauces, canned pastas, beans, pasta sauces, gravies and soups. Heinz Canada is also the major supplier of single serving and flexible packaging condiments for most fast food chains in Canada. Leamington, Ontario is the largest tomato processing region per acreage in the world. The Leamington plant usually processes more than 250,000 tons of tomatoes per year. With its unique combination of climate and rich soil, Leamington is one of the best areas for growing vegetables in the world[citation needed]. Heinz Canada's head office is in North York, Ontario and it also has operations in St. Marys, Ontario; Calgary, Alberta; and Montreal, Quebec.

It was announced on 14 November 2013 that the Leamington, ON facility, the second largest in the company, would start winding down operations and close sometime in May 2014 and ketchup processing operations will be consolidated at their US locations. Over 800 local jobs will be lost due to losing the town's largest employer. A local effort began in an attempt to save the 105 year old Leamington plant which included a Facebook page [28] and on February 27, 2014 a letter of intent was signed by the Highbury Canco Corporation to acquire and operate the facility.[29] On April 11, 2014 it was reported that Highbury Canco Corporation has received a one-year license to process tomatoes at the facility.[30]

India[edit]

Heinz Ketchup is available in India in two varieties, the standard Tomato Ketchup and Tomato Chilli Sauce.[31]

Indian taste preferences vary from region to region, making it necessary for Western brands like Heinz to work on Indian interpretations of ketchups for sale in the country.[32]

Heinz acquired the former foods division of Glaxo India and gained the Complan, Glucon D, Glucon C, Sampriti Ghee, and Nycil products and brands.

Netherlands[edit]

Heinz sells many products in the Netherlands; the Elst factory in Gelderland is the primary production facility for Heinz sauces for Western Europe. In 2006, production of both HP Sauce and Daddies was transferred from Birmingham, West Midlands to Elst as a result of the acquisition of HP Foods and the subsequent closure of the Aston factory.[33] Subsequently, Heinz suffered severe supply issues for the ex-HP Foods brands as the Elst factory struggled to integrate production, resulting in significant negative coverage from UK retailers.[34] Heinz was forced to begin bottling sauce in Spain, shipping ready-made sauce from Elst, to get product back into supply.[35]

Philippines[edit]

In the Philippines, Heinz was distributed by NutriAsia.[citation needed]

As of March 2006, Heinz and NutriAsia have ended their joint-venture partnership and Heinz products are now distributed by Getz Bros.[citation needed]

United Kingdom[edit]

The Heinz Monument, in the centre of Cape Cornwall, commemorating its purchase for the nation by H. J. Heinz Company.

Heinz is the leading seller of baked beans in the UK, with its beans product lines referred to as Heinz Baked Beans.

The UK headquarters is in Hayes, London. After opening its first overseas office in London in 1896, the company opened its first UK factory in Peckham, south London in 1905. This was followed by a factory at Harlesden, north-west London in 1919; this factory, which was bombed twice in World War 2, remained in production until 2000.[36] Production was started at a former munitions factory at Standish near Wigan in 1946, before the new factory at Kitt Green, near Wigan, opened in 1959. Heinz also has an infant food factory in Kendal, Cumbria. The site specializes in baby milks, previously under the brand of Farley's, but now manufactures under the name Heinz Nurture. It currently has around 200 employees.

Heinz produces oriental foods sold under the Amoy brand, used under license from Ajinomoto Co. Inc., Tokyo, Japan.

In 2001, the Food Standards Agency of the Government of the United Kingdom found Heinz canned baked beans products to be contaminated with the hormone disruptor bisphenol.[37]

In June 2009, a company PR stunt announced they had introduced the prototype of the world's smallest, portable microwave, the "Beanzawave". The microwave would be targeted at office workers and students and can be powered by a computer via a USB port. The size of the microwave is good for heating up coffee or tea or small items. It is also good for heating up Heinz's hot snack line, Snap Pots, for which it was created. The prototype was designed by microwave expert, Gordon Andrews and industrial designer, Stephen Frazer.[38]

In 2013, the Kitt Green facility was listed as one among the world’s top five manufacturing units. (among other by Discovery Channel world’s top five largest factories:Reliance’s Jamnagar Refinery, Volkswagen ‘s car plant, Kitt Green Foods plant, NASA’s Kennedy Space Center, POSCO ‘s steel plant).[39] It is Europe's largest food factory and turns over more than 1 billion cans every year.[40]

China[edit]

On 22 February 2013, Sanquan Food, a Chinese frozen food company, signed a contract to purchase LongFong Food, a subsidiary of Heinz Company in China.[41] With this sale, Heinz (China) will focus on infant foods and sauces in emerging markets such as China.[41] Heinz Hong Kong Limited is the regional office serving for operations in Hong Kong, China and Taiwan.

See also[edit]

Notes[edit]

  1. ^ a b c d e Creswell, Julie (September 18, 2000). "Bottled Up Profits aren't flowing like they used to at packaged-goods companies. Can green ketchup and Tuna in a Pouch save Heinz?". Fortune. CNNMoney.com. Retrieved 2012-08-31. 
  2. ^ a b c H. J. Heinz Company (HNZ) annual SEC income statement filing via Wikinvest
  3. ^ a b "HEINZ H J CO 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. July 9, 2013. 
  4. ^ H. J. Heinz Company (HNZ) annual SEC balance sheet filing via Wikinvest
  5. ^ "About". Heinz. Retrieved 2014-02-11. 
  6. ^ "Berkshire Hathaway, 3G Buying Heinz for $23.3 Billion". Cnbc.com. November 21, 2012. Retrieved 2013-02-14. 
  7. ^ a b  "Heinz, Henry John". Collier's New Encyclopedia. 1921. 
  8. ^ Business Week, September 15, 1997, Lead cover story: "The CEO and the Board"
  9. ^ Booth, Jenny (June 24, 2008). "Heinz pulls mayonnaise ad over gay kiss furore". The Times (London). Retrieved June 25, 2008. 
  10. ^ Sweney, Mark (June 24, 2008). "Heinz pulls ad showing men kissing". The Guardian (London). Retrieved June 25, 2008. 
  11. ^ Judd, Terri (June 25, 2008). "Kiss goodbye to your sales, Stonewall tells 'homophobic' Heinz after advert is pulled". The Independent (London). Retrieved June 25, 2008. 
  12. ^ Summerskill, Ben (June 24, 2008). "Beanz meanz bigotz". The Guardian (London). Retrieved June 25, 2008. 
  13. ^ "Early Day Motion 1889". Edmi.parliament.uk. Retrieved 2011-12-23. 
  14. ^ a b c Berkowitz, Ben; Geller, Martinne (2013-02-15). "Buffett, Brazil's 3G team up for $23 billion Heinz buyout". Reuters. Retrieved 2013-02-15. 
  15. ^ Holm, Erik (2013-02-14). "In Heinz, Berkshire to Let Others Run Show". The Wall Street Journal. Retrieved 2013-02-15. 
  16. ^ Tracer, Zachary (2013-02-14). "Berkshire joins 3G Capital to buy Heinz in $23 billion deal". The Washington Post. Retrieved 2013-02-15. 
  17. ^ "McDonald's Is Cutting Ties With Heinz For Hiring Former Burger King CEO". October 25, 2013. Retrieved October 25, 2013. 
  18. ^ "Heinz to Shed 600 Jobs in North America". The Wall Street Journal. August 13, 2013. Retrieved August 14, 2013. 
  19. ^ Baertlein, Lisa. "Ketchup changeup: McDonald's dropping Heinz after CEO change". Yahoo Finance. Retrieved 26 October 2013. 
  20. ^ "National Register Information System". National Register of Historic Places. National Park Service. 2009-03-13. 
  21. ^ a b "Opportunities at Heinz". Heinz Australia. May 27, 2011. Retrieved May 27, 2011. 
  22. ^ a b "Heinz eyes up local icon Golden Circle". News Corporation. October 6, 2008. Retrieved October 6, 2008. 
  23. ^ Gearin, Mary (May 27, 2011). "Over 300 jobs lost in Heinz restructure". ABC News. Australian Broadcasting Corporation. Retrieved May 27, 2011. 
  24. ^ "Heinz Australia announces productivity initiatives to accelerate future growth" (Press release). Heinz Australia. May 27, 2011. Retrieved May 27, 2011. 
  25. ^ a b Lauder, Simon (January 6, 2012). "Heinz sauce factory closing today". ABC News. Retrieved January 6, 2012. 
  26. ^ Staff Writers (November 2, 2011). "Investor pledges millions towards Heinz plant". ABC News. Retrieved January 6, 2012. 
  27. ^ Heasley, Andrew (January 6, 2012). "146 jobs to be lost as Heinz closes tomato sauce factory". The Age. Retrieved January 6, 2012. 
  28. ^ https://www.facebook.com/heinzfactoryemployeehelpgroup
  29. ^ http://www.ctvnews.ca/business/heinz-announces-deal-to-keep-leamington-ont-plant-in-operation-1.1706270
  30. ^ http://www.cbc.ca/news/canada/windsor/highbury-canco-can-process-tomatoes-in-leamington-heinz-plant-1.2606570
  31. ^ "Ketchup Tomato, Tomato Sauce, Tomato Ketchup, Chili Sauce". Heinz. Retrieved 2014-02-11. 
  32. ^ Vijayraghavan, Kala. “Heinz braces up for aggressive marketing.” The Economic Times. January 7, 2010.
  33. ^ "Heinz Sauce Jobs Lost To Holland | Business | Sky News". News.sky.com. Retrieved 2011-12-23. 
  34. ^ "HP Sauce hit by supply 'disaster'.(news)". Highbeam Research. Retrieved 2013-02-14. 
  35. ^ Paul Dale (July 21, 2008). "News – Now Spain starts making HP Sauce, too". Birmingham Post. Retrieved 2011-12-23. 
  36. ^ "Secret history". The Brent Magazine. London Borough of Brent. April 2009. 
  37. ^ Friends of the Earth: Press Release: hormone disruptor found in can linings]
  38. ^ Poulter, Sean (June 8, 2009). "Heinz creates world's smallest microwave (and you can plug it into your laptop)". Dailymail.co.uk. 
  39. ^ "RIL’s Jamnagar Refinery Listed Among The World’s Top Five Refineries". GroundReport. October 30, 2012. Retrieved 2013-02-14. 
  40. ^ "About Heinz – Heinz UK and Ireland". Heinz. Retrieved 2013-02-14. 
  41. ^ a b Kang, Xiaoxiao (25 February 2013). "Sanquan Food acquiring Heinz’s subsidiary in China". The Morning Whistle. Retrieved 2 April 2013. 

References[edit]

  • Condon, Richard (1959). The Manchurian Candidate. McGraw-Hill. ISBN 0-515-09441-2 (The Berkeley Publishing Group paperback edition).
  • Dienstag, Eleanor Foa (1994). In Good Company: 125 Years at the Heinz Table. Warner Books.

External links[edit]

Coordinates: 40°27′16″N 79°59′27″W / 40.4545°N 79.9909°W / 40.4545; -79.9909