Excite Careers
HJ Heinz 600 Grant St., Pittsburgh, PA 15219
www.heinz.com (412) 456-5700    Fax: (412) 456-6128  

The Scoop  

"57 Varieties" and then some

Upon his death in 1991, 53-year-old John Heinz, III was the richest member of the U.S. Senate. His wealth is testament of the universal popularity of Heinz's wide array of pickles, ketchup, pet foods, baby foods, and health foods. H.J. Heinz has produced thousands of prepared food varieties since 1876, yet its beginnings are humble: the company started with a bankrupt horseradish businessman who needed his cousin's help to start a new ketchup and pickle company. Soon after, the resilient entrepreneur developed a reputation as a marketing wizard. He introduced the popular "57 Varieties" theme in 1897; in 1900, he created a 40-foot electric sign in the shape of a pickle. Presently, Heinz takes almost half of its profits from international business. Its six core categories are ketchup, condiments, and sauces; frozen foods; tuna; soups, beans, and pasta meals; infant foods; and pet food. Famous Heinz brands include Ore-Ida, 9-Lives, Weight Watchers, Wattie's, Bagel Bites, Kibbles 'n Bits, Olivine, and Boston Market.

Star-kissed

Heinz relied upon its traditional product lines of pickles and ketchup until it began to diversify in the 1950s and 1960s. It purchased overseas food processors as well as domestic companies, like Star-Kist tuna and Ore-Ida potatoes. In 1995, Heinz took over 10 other companies, including its largest purchase to date, the pet foods division of Quaker Oats. In 1997, as part of a restructuring effort, Heinz announced that it would close or sell 25 of its plants.

Brains and brawn

In 1998 former rugby star Anthony O'Reilly tapped William Johnson to succeed him as CEO of Heinz. Johnson immediately announced he would increase two things: power at the management level and brand marketing. For the latter, Heinz decided to resume its ketchup television ads after a five-year hiatus. Accordingly, cartoon icon Private Pickle took his place next to the company's other hit characters, Charlie the Tuna and Morris the Cat, in an attempt to market products to the U.S. military. Meanwhile, Ore-Ida Foods and Weight Watchers combined to form the Heinz Frozen Food Company. The streamlining effort axed 400 jobs and one plant. Also in 1998, Heinz sold its bakery products division to Pillsbury for a cool $178 million. In 1999 Johnson announced a $900 million growth and restructuring program, calling for the trimming down of about 10 percent of the company's 40,000-strong workforce and the shutting down of underperforming factories. Heinz hopes to drive sales up three to four percent annually in a one to two percent growth industry.

The global revolution

In 1998 Heinz agreed to buy the convenience meals division of Sonnen Basserman, a German marketer. Moreover, Heinz said it would be placing its ketchup into a single global advertising and brand-image account worth as much as $150 million. In 1999, in an effort to increase efficiency and centralize operations, the company integrated its various sales forces under one roof, the Heinz Sales Co. In 2000 the company also expanded its position in the fast-growing Asian sauces market by acquiring the Yoshida brand and the world's second-largest soy sauce company, ABC Indonesia. Heinz also entered a joint agreement with Nutri Asia, the top producer of ketchup in the Philippines.

Yeah, baby, yeah

In December 1999 Heinz and its Chinese affiliate announced the opening of a food processing facility to produce its first line off reciped baby foods in jars. With more than 20 million babies born each year in China, the company sees lots of potential for growth in that market.

The company further extended its presence in the baby food market in February 2000 by acquiring Milnot Holding Corporation, the maker of Beech-Nut prepared infant food brands, giving it a 24 percent share of the U.S. market. Baby foods account for 11 percent of the company's revenues. In July, however, the Federal Trade Commission voted to file a preliminary injunction blocking the proposed $185 million acquisition of Milnot, citing that the deal could violate antitrust laws by reducing the number of U.S. baby-food marketers from three to two.

Trimming down, Weight Watchers style

In 1999, in keeping with its plan to focus only on key food products, Heinz sold its Weight Watchers diet classroom business for $735 million. The company is keeping all the frozen meals, desserts, and breakfast items that will be sold under the Weight Watchers Smart Ones moniker. Also in 1999 the company acquired Georgia-based Thermo Pac and Belgium-based Serv-A-Portion, both makers of single-serve products. Moreover, Heinz strengthened its frozen food business by acquiring UB Frozen and Chilled Foods from U.K.-based United Biscuits. And in 2000, in a major product introduction, the company began marketing full-calorie meals sold under the Boston Market Home Style label, hoping to add $200 million within two years to annual sales.

Getting Hired  

Heinz does not list job openings externally, but the company does accept resumes at its corporate headquarters, where they are kept on file for one year. Heinz is preparing for corporate changes that include extensive reorganization. For now, however, applicants can review Ore-Ida job openings at the subsidiary's hiring Web page or www.oreida.com. Heinz's site, or www.heinz.com, offers a breakdown of its divisions, including Oreida (Ore-Ida, Rosetto, Bite Bunch), Weight Watchers (Weight Watchers), StarKist (StarKist), Heinz Pet Products (Pets Unleashed, Kibbles 'n Bits, 9 Lives, Cycle Dog Food, GravyTrain, Reward, MeatyBone, JerkyTreats, Pupperoni, Snausages, Pounce), Heinz Canada (Heinz Canada Infant & Toddler Nutrition), Heinz UK (Heinz UK & Ireland Site, Heinz UK Direct Selling Site), and College Inn Soups (College Inn), Heinz Tomato Seed Varieties (Heinz Seeds).

Our Survey Says  

Nervous employees

Although our insiders say they have been "watching the company nervously" since downsizing plans were announced in early 1997, they still "take pride" in working for an "internationally-known household name." Informants laud Heinz's corporate home, Pittsburgh, as an "affordable" and "liberal city," and praise perks such as annual bonuses based on company performance and discounts to area sports events. Some of our contacts, however, are critical of Heinz's "inability to innovate." Moreover, they complain that "the current downsizing efforts reflect the conservative management style of the board of directors."

Relish any job at Heinz

As far as job opportunities are concerned, one Heinz source doesn't mince words: "We are currently in our second reorganization in two years. 3000 to 4000 people will be laid off. You take it from there." Another insider is equally pessimistic: "Jobs here are both scarce and unstable. If you're applying, don't get your hopes up."

Employment Contact  

Human Resources
(412) 237-5757

Products and Services  

Food products; Food service; Diet services; Pet food;

Key Competitors  

Campbell Soup ; ConAgra ; Jenny Craig;

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