The Heinz Company was incorporated in Pennsylvania on July 27, 1900. It manufactures and markets food products throughout the world. The company is mainly organized into the following reportable segments:
* North America Consumer Product: The segment includes the manufacturing and selling of ketchup, condiments, snacks, and other products into the grocery channels in the U.S. as well as the Canadian business.
* Europe: This segment includes products across all of the company’s categories throughout Europe.
* Asia Pacific: Includes the company’s operations in Australia, New Zealand, India, Japan, China, South Korea, Indonesia and Singapore across all of the company’s categories.
* U.S. Food Service: This segment includes the manufacturing and selling of branded and customized products to commercial and non-commercial food outlets in the U.S.
* Rest of the World: The segment includes the company’s operations in Africa, Latin America and the Middle East.
CHART I: Sales evolution by geography
As can be seen in Chart I, the company has maintained a fairly stable sales composition. However, it can be seen that international markets, particularly the Asia/ Pacific region, fuel the company’s sales growth. Developed markets like the U.S and U.K, though remain particularly important do not provide HNZ as well as other players in the packaged food sector the growth that emerging markets are currently providing. The U.S. Food Service segment has been experiencing consistent sales declines as restaurant traffic continues to weaken.
Approximately 70% of the company’s total sales are generated by the top 15 brands, which typically have the highest or second highest market share in their respective product category. The company’s top fifteen brands include: Heinz, Pudliszki, Complan, T.G.I Friday’s, Classico, Watties, Golden Circle, Weight Watchers, ABC, Bagel Bites, Delimex, Plasmon, Smart ones,...