H.J. Heinz Company

Alan Archer MGMT 6650

Mission and ValuesMission

“As the trusted leader in nutrition and wellness, Heinz – the original Pure Food Company – is dedicated to the sustainable health of people, the planet and our Company.”

Core ValuesTeam Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals.Innovation - We spot consumer and customer needs and meet them with simple, creative solutions.Vision - We define a compelling, sustainable future and create the path to achieve it.Results - We deliver on commitments, take accountability and balance the short- and long-term.Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

History

1869 – Founded by Henry Heinz, The Heinz Co.

packaged its first product in clear bottles to show customers its purity.

1876 – Heinz Ketchup makes its debut

1890- The iconic glass bottle is introduced

1968 – The individual foil ketchup packages hit the

market

1983 – Heinz unveils the first plastic squeeze bottle

1990 – First recyclable bottle hit the shelves

2002 – The first upside-down bottle arrives

2002 – Heinz introduces spicy and other flavored

ketchups

2010 – Simply Ketchup line launches: made only from

natural ingredients and spices

2011 – Heinz partners with Coca-Cola to make all bottles with PlantBottle packaging; uses up to 30% renewable plant-based material per

bottle

2011- Dip and Squeeze packages hit stores

2013-H.J. Heinz Company announces sale to Berkshire Hatheway on February 14,

2013.

Leadership / Key PlayersHenry J. Heinz

Bob Ostryniec

William R. Johnson

Bernardo Hees

Business Facts

Over 5700 products

Sells products in over 200 countries.50+ % U.S. Market Share in Ketchup45% U.S. Market Share in Tuna (Starkist)50+% U.S. Market Share in frozen potatoes (Ore-Ida)Heinz sells 650 Million Bottles of Ketchup per annum, as well as 2 single serve packets for every person on earth.Company boasts 150 #1 or #2 rated products worldwide.

Stock Price 2009 - 2013

Up 95% from March 2009 to 2013Heinz (HNZ until 6/7/13) is sold for $72.50 / share. (19.87% above pre-announcement close of $60.48)

10 Year GoalsGoal Category 20% 15% 10%Energy Consumption DecreaseGHG Green House Emissions DecreaseSolid Waste Reductions DecreaseWater Consumption DecreaseRenewable Energy IncreaseTransportation Cost DecreasePackaging Materials Decrease

Lean / Six SigmaBob Ostryniec introduces Six Sigma into the Heinz culture in 2005.Implements program to train all employees at yellow or green belt levels.Used Lean Sigma to implement a new production process. Instead of status quo measures at the end of the day, they monitor the lines every hour or two and make adjustments accordingly. Efficiencies are monitored in real-time through HOTS (Heinz Operational Tracking Systems). Results are posted at the end of the day to inform workers of how they are performing. Heinz seeks to combine their most successful tools and processes into one production process called (HGPS) Heinz Global Performance System (2009)

Improving PackagingReuse

• Reuse packaging components where possible throughout the supply chain to minimize material waste and its associated carbon footprint (e.g., reusable totes, pallets, slip sheets).

Reduce

• Optimize designs to minimize use of packaging materials while ensuring product protection throughout the supply chain and proper performance for our consumers (e.g., eliminate components, light-weighting).

Recycle

• Utilize recyclable materials where possible. Incorporate post-consumer recycled content where feasible.

Renew

• Evaluate and utilize packaging materials derived from renewable sources where feasible to reduce carbon footprint.

Select Packaging Reductions

New Zealand

Heinz-Wattie’s began studies on the effect of lighter cans through the manufacturing process and supply chain.

Reduced highest volume can gauge from .23mm to .16mm. Cutting both cost and waste.

Of the 270 million cans produced in Fiscal Year 2010, 240 million were down-gauged, representing nearly 90% of all canned production.

By down-gauging 240 million cans, Heinz saved more than 1,000 tons of tin plate from being produced for our use.

Select Packaging ReductionsU.S.A

Weight Watchers® Smart Ones® TraysUse 40% less plastic than the previous trayReplacing plastic with calcium carbonate, a natural mineral, has cut GHG emissions of applicable packaging by 45% to 55%More durable microwave-only trayReduce tray weight by 15%

Ore-Ida® Stand-Up PouchRedesigned packaging to reduce material usage and improve functionality

15% reduction in materialReduces resin usage by 402 metric tons

26% reduction in CO2 per unitElimination of nylon to enable recycling of scrap pouch material

Classico® Pasta Sauce JarsImproved ergonomic glass designImproved footprint to reduce supply chain damageRedesigned for optimal glass weight distribution12% reduction in packaging per unit18% reduction in CO2 per unit

Conclusion

H.J. Heinz Company has continuously pursued innovation. Through Lean /Six Sigma Heinz has improved both production processes and packaging materials.Continued dedication to improvement could serve as a competitive advantage.

Sources

http://news.heinz.com/press-release/finance/berkshire-hathaway-and-3g-capital-complete-acquisition-hj-heinz-company

http://www.heinz.com/data/pdf/ketchuptimeline.pdf

http://www.bus-ex.com/article/hj-heinz

http://en.wikipedia.org/wiki/Henry_J._Heinz

http://www.heinz.com/our-food/products.aspx#2

Q & A