H.J. Heinz Case

Topics: H. J. Heinz Company, Ketchup, Heinz Tomato Ketchup Pages: 31 (8365 words) Published: October 13, 2014

H.J. Heinz Inc: Industry Analysis
Kasey Feigenbaum, Justin White, Elliott Matticks
Furman University




Introduction and Global Operations Overview
The Heinz Company is a global leader in the food industry. In the United States, the iconic bottle of Heinz ketchup is a familiar household staple. However, consumers may not be aware that ketchup is only one of dozens of Heinz products on the market, and the majority of the company’s revenue comes from markets outside the United States in Europe and Asia. With its headquarters in Pittsburgh, Pennsylvania, Heinz has offices located on six of the seven continents. Heinz focuses on marketing their products with an emphasis on health, wellness, and sustainability. Along with manufacturing high quality food products adapted to unique consumer traits in various regions of the world, Heinz also contributes generously to charitable efforts in parts of the world that need help most. Recently, Heinz received an award for ranking number one in customer satisfaction for the eleventh year in a row by the American Customer Satisfaction Index (Heinz, n.d.). “The Company,” as it calls itself, has high standards for the food it manufactures and for its corporate operations resulting in a role-model of a company raising the bar in global business operations.

History and Global Footprint
Heinz founder Henry John (H.J) Heinz created a foundation for company success by instilling values of team building, collaboration, innovation, vision, results-based operations, and integrity in his employees. By following his mission statement, “To do a common thing uncommonly well brings success,” Heinz has been successful at introducing new products to the market for over 140 years (Heinz, n.d.). The H.J. Heinz Company was founded in 1869 in Sharpsburg, Pennsylvania. It was incorporated on July 17, 1900, and grew to become a business partnership in 1905. Currently, Heinz headquarters are in Pittsburgh, Pennsylvania.



Heinz is striving to develop globally while positively impacting the world. Through its HeinzSeed program, the Company is promoting sustainability and supplying more than 30 countries with natural hybrid tomato seeds (H.J. Heinz Annual Report and 10k, 2010). This enables farmers to produce higher yields of quality tomatoes without genetic modification. It has been particularly successful in China, and the Company recently began a program partnering with the United States Agency for International Disaster in the economically afflicted Upper Nile region of Egypt. Heinz also partners with Lucy Liu as spokeswoman for the Heinz Micronutrient program to provide packages of powdered vitamins and minerals that can be mixed into normal meals for infants and children living in developing nations. The Heinz Microseed program has helped three million children fight the threat of iron deficiency, anemia, and vitamin and mineral malnutrition in 15 countries (H.J. Heinz Annual Report and 10k, 2010). The program was recently introduced into North America and Africa as it continues to grow, with a goal of reaching one million additional children by the end of this year. Heinz is committed to impacting the world through the Heinzseed and Heinz Micronutrient programs. Industry and Products

As previously mentioned, Heinz is a global leader in the global market of food products. With sixty percent of its sales generated outside the United States, Heinz is an example of a company that has prospered from globalization (Heinz 10K Annual Report). The products that Heinz manufactures and markets fall under the three categories of condiments, frozen foods, and infant foods. Product availability varies around the world, as do the ingredients. For example, popular Heinz products distributed in the United States include Smart Ones and T.G.I. Friday’s frozen entrees, Pickles, Classico pasta...

References: Boyle, M. (2010, May 27). Heinz will almost triple investment in China to expand into baby
Cordiero, A., & Stynes, T. (2010, September 1). Heinz profit rises 13% on emerging-market
H.J. Heinz Company to Participate in the 2010 Credit Suisse Holiday Conference. (2010,
November 30) The Wall Street Journal Market Watch
Heinz Reports EPS of $0.78, Reaffirms Full-Year Fiscal 2011 Outlook for Sales, Operating
Income and EPS, Raises Operating Free Cash Flow Target 15% to $1.15 Billion.(2010,
On the Call: Heinz CEO Discusses China - BusinessWeek.(2010, November 22)
Rawsthorn, A. (2009, April 12). An icon, despite itself. The New York Times. Retrieved from:
Story, L. (2007, August 26). The high price of creating free ads. The New York Times. Retrieved
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The World Factbook, Retrieved from https://www.cia.gov/library/publications/the-worldfactbook/geos/in.html
The World 's Favorite Ketchup: 2010 HJ Heinz Company Annual Report and 10-K.(2010)
Vega, Tanzinia.(2010, November 28). Marketers Discover Trucks Can Deliver More Than Food.
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