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H.J. Heinz

H.J. Heinz. Group E: Balmaceda , Henry Montez, Monea Parra, Jorge Tjia , Clarie. Mission Statement: “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.”.

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H.J. Heinz

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  1. H.J. Heinz Group E: Balmaceda, Henry Montez, Monea Parra, Jorge Tjia, Clarie

  2. Mission Statement: “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.” William R. Johnson President, CEO, Chairman Europe, North American consumer products, Asia/Pacific, US foodservice, and the rest of the world Five Values • Team Building & Collaboration • Innovation • Vision • Results • Integrity Focus • Grow the Core Portfolio • Accelerate Growth in Emerging Markets • Strengthen and Leverage Global Scale • Make Talent an Advantage

  3. External Environment Factors • Industry • Top competitors are Kraft Foods and Nestle • H.J. Heinz holds over 50% market share in the U.S. • Socio-Cultural • Attitudes, culture, and tastes vary greatly by country • Government & Political • Not being able to meet guidelines in quality, procedures, or requirements that might disrupt the supply chain • Economic Conditions • People look for cheaper alternatives • Technology • Company is using the latest technology in supply chain management using Manugistics • Raw Materials • Material cost inflation • Increase in costs

  4. Evaluating the Company 10.7 billion in sales Top 15 brands generate 70% of revenue Heinz focuses on three categories: ketchup & sauces, meals & snacks and infant/nutrition

  5. Past Challenges • Recalls • Baby food recall in Canada, could’ve impacted their ability to expand to China since they have trust issues with baby food suppliers • Workforce Problems • Strikes in the UK shows Heinz’s inability to meet worker’s demands • Future confrontations can lower production • Gaining Market Share • There are many external environment factors and challenges that the company has to consider in order to successfully expand globally • Lawsuits • Expensive lawsuits can cost them the opportunity to use those funds to expand globally

  6. Major Challenges Present Day • Heinz’s heavy reliance on Wal-Mart • Product recall damages brand image • Intense competition • Stringent regulations • Increasing labor costs • Shift in consumer preference

  7. Management Scope • Introduce lower-priced products • Use emerging market branches • Use foreign exchange rate currency • Lower raw-materials costs • Strict control over quality assurance & quality standards • Shift products to follow consumer preference

  8. Making Gains • Heinz Plans to grow in different countries by purchasing 80% stake in a Brazilian sauce company. • Brazil generates 15% of Latin America’s GDP and is vastly growing. • Purchasing Quero (Brazilian Sauce Company) Heinz will be well positioned in key emerging markets of Brazil, Russia, India, China, and INDONISIA. • Heinz’s Long-Term Strategy to grow the core portfolio is to invest more into their Research and Development Department.

  9. Looking Outside the Box • As companies grow they will need to look into other means of resources. HJ Heinz has made major gains in the US but is now moving into emerging company's giving them an opportunity to grow the company. • Planning and researching other means of growth has given HJ Heinz a major advantage in developing countries. Queros is a well known brand and well trusted in Brazil and Heinz will use that to their advantage to gain revenue. • Heinz products are well known and they have quickly realized that they will need to develop and market them better. (Heinz ketchup bottle is a good example) • Investing millions into their developing department is enabling them to develop their current products and making them more appealing to the public.

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