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+11% CAGR*
$2.90 $2.63 $2.38 $2.10
+5.5% CAGR
$10,071 $9,002 $10,148
FY06(1)
FY07
FY08
FY09
FY06
FY07
FY08
FY09
FY06(1)
FY07
FY08
FY09
(1) FY06 amounts are continuing operations excluding special items disclosed in the 2008 Annual Report
(1) Cash from operations less capital expenditures net of proceeds from disposals of PP&E
7.6% CAGR
$1.66 $1.52 $1.40 $1.08 $1.14 $1.20
$1.68
FY04
FY05
FY06
FY07
FY08
FY09
FY10E
Marketing Investment
+30%
~20% 14% EPS Growth Op. Free Cash Flow After-Tax ROIC(3)
FY09 FY13E FY06 (1) FY09
(2)
Organic Sales Growth(1) +5.5% Net Income Growth +9.2% +10.3% $880 million 18.4%
(1) Volume plus price (2) Cash from operations less capital expenditures net of proceeds from disposals of PP&E (3) Includes a 1.1% benet from currency translation hedges
The list contained in this publication highlights operating business units, regions and countries where the H.J.Heinz Company has a substantial presence and the associated key brands and products that the Company markets and produces around the world. Each affiliate is responsible for producing and marketing products for consumers in its region.While product lines and recipes are localized, packaging is often standardized.This listing is not a complete inventory of Heinzs legal entities and thus excludes holding, trademark and inactive companies.
Printed in 2009
Heinz at a Glance
The H.J. Heinz Company is one of the worlds leading marketers and producers of nutritious foods in three core categories: Ketchup and Sauces; Meals and Snacks; and Infant/Nutrition. Heinz provides superior quality, taste and nutrition to people eating at home, at restaurants, at the office and on-the-go. The Company has a world-class portfolio of powerful brands, with 150 brands holding number-one and number-two positions across five continents and in more than 50 countries, showcased by Heinz Ketchup, The Worlds Favorite Ketchup. Heinz is the most international U.S.-based food Company, with more than $10 billion in global sales as of Fiscal 2009, and a market capitalization of approximately $15 billion. The Company has more than 30,000 employees worldwide and 11,000 employees in the U.S. Under the leadership of Chairman, President and CEO William R. Johnson, the Company continues to deliver on its tradition as the Pure Food Company.
Heinz Overview
Todays Heinz is centered on a global portfolio of iconic brands. Under the leadership of Chairman, President and CEO William R. Johnson, Heinz has reshaped its business to focus on the brands where it has leading market positions and the capabilities to drive consistent, profitable growth. Heinz is a good investment and is committed to being an industry leader in dividend payout ratio, at roughly 60 percent of net income. Led by the Heinz brand, with nearly $4 billion in global sales, the Companys top 15 brands generate approximately 70 percent of total Company sales. Heinz operates by a philosophy of global coordination and local execution. The Company captures the benefits of its multinational scale in areas like purchasing, information systems and finance, while each business unit is free to make decisions on product development and marketing based on local consumer tastes and business conditions. Innovation is driving new product development at Heinz with the goal of deriving 15 percent of sales from products introduced within the previous 36 months. The Heinz Global Innovation and Quality Center, opened in 2005, is a testament to Heinzs dedication to new product development. Investment in R&D has accelerated at a double-digit rate in each year since the Innovation Centers opening. Consumers increasingly want great-tasting foods that fit into more active and healthy lifestyles. Heinz is well positioned with a portfolio concentrated in tomato-based products, beans, potatoes, soups and other inherently good-for-you foods. Heinz is a leader in weight management through its Weight Watchers from Heinz and Weight Watchers Smart Ones branded products. As a global authority in Infant and Childrens Nutrition, Heinz also is at the vanguard of scientific advances that enhance baby and child development. A key pillar of Heinzs growth strategy is to accelerate growth in emerging markets. From producing the leading soy sauce in Indonesia to the top-selling baby cereal and frozen dumplings in China, Heinz is growing rapidly in emerging market economies, where millions are entering the consumer classes each year. Heinz anticipates deriving a third of its sales growth from emerging markets over the next several years. By 2013, Heinz expects these markets to generate about 20 percent of total sales. Heinz foods have been promoted through the years with creativity and flair. From the Heinz Pickle Pin to the famous 57 Varieties slogan, Heinz has been a pioneer of consumer marketing. Heinz in recent years has increased its marketing investment at a double-digit rate across a broad spectrum of media, from TV, radio and print, to in-store and online to support its robust new product pipeline.
Heinz is committed to giving back to the communities in which it operates. Through the Heinz Company Foundation, our Heinz Micronutrient Program is combating iron-deficiency and malnutrition among children in the developing world. The program has helped 2.6 million children in 15 developing countries. We plan to continue expanding our reach in targeted regions and further establish Heinz as a trusted, global supplier of micronutrient products.
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21 Phoenix, Arizona 22 Chatsworth, California Escalon, California 23 Irvine, California 24 San Diego, California 25 26 Stockton, California Fort Myers, Florida Jacksonville, Florida Atlanta, Georgia A Pocatello, Idaho Chicago, Illinois Cedar Rapids, Iowa B Muscatine, Iowa Newburyport, Massachusetts Holland, Michigan Le Center, Minnesota Fair Lawn, New Jersey Fremont, Ohio Mason, Ohio Massillon, Ohio
Leamington, Ontario, Canada St. Marys, Ontario, Canada Ontario, Oregon Florence, South Carolina King of Prussia, Pennsylvania Kent, Washington
Offices
Pittsburgh, Pennsylvania H.J. Heinz Company World Headquarters Heinz North America Toronto, Canada
Irvine, California; Jacksonville, Florida; Kent, Washington; King of Prussia, HEINZ CONSUMER PRODUCTS (U.S.) Pennsylvania; Leamington, Ontario, Canada; Le Center, Minnesota; Mason, Ohio; Muscatine, Iowa; Newburyport, Factories: Fair Lawn, New Jersey; Massachusetts; Phoenix, Arizona; Fort Myers, Florida; Fremont, Ohio; Stockton, California Florence, South Carolina; Holland, Michigan; Massillon, Ohio; Ontario, Brand Names and Licensed Trademarks: Oregon; Pocatello, Idaho; San Diego, Heinz/ Escalon Premier BrandsTM/ California Todds/ Portion Pac/ Truesoups/ Chef Francisco/ Diannes/ Alden Merrell/ Brand Names and Licensed Trademarks: Dessert Inspirations/ Appetizers And, Inc./ Heinz/ Lea & Perrins/ Bagel Bites/ Diannes Gourmet Desserts/ Heinz Bell Delimex / Boston Market / Weight Watchers Smart Ones/ T.G.I. Fridays/ Orto/ Bella Rossa/ Christinas Organic/ Mama Linda/ 6-in-1/ Black Classico/ Ore-Ida/ Wylers/ Nancys TieTM/ KabobsTM/ Quality Chef TM/ Americana/ Chatsworth/ Madeira Farms/ Pitch rpak/ PPI/ Salsa del Sol/ HEINZ FOODSERVICE Squeezers/ Sweet Portion/ Taste Pleasers Gourmet Factories: Escalon, California; Chatsworth, California; Atlanta, Georgia; Chicago, Illinios; Cedar Rapids, Iowa;
Heinz Ketchup, the Companys flagship brand, holds more than 60% share of the grocery business and is found in 97 of the top 100 U.S. restaurants.
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Heinz North America accounts for 45% of Heinzs sales worldwide.
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In Canada, Heinz is the leading Infant/Nutrition brand, and Renes GourmetTM, acquired in Fiscal 2007, is the market leader in chilled dressings. In the U.S., Heinz also enjoys one of the largest businesses in the supermarket freezer aisle, including leading brands like Ore-Ida, Weight Watchers Smart Ones, T.G.I. Fridays, Boston Market, Bagel Bites, and Nancys.
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Globally, Heinz uses more than 5 billion pounds of tomatoes every year in its products.
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Each year since its launch in 1934, Heinz baby food has been the #1 choice for Canadian moms. Canada boasts twelve brands that are #1 in their respective categories.
The Micronutrient Campaign, supported by the H. J. Heinz Company Foundation, distributes sachets of vitamins and minerals essential to childrens development that can be added to staple regional foods without altering their taste. There are three key regions of focus for the Heinz Micronutrient Campaign referred to by the names of children the team has met in those countries: China (Project Mei Li), Indonesia (Project Mayang) and India (Project Ashok). The team works to secure funding to sustain local programs on a long-term basis to help all children around the world grow up strong and healthy. The Micronutrient Campaign has been recognized worldwide by numerous humanitarian organizations for its contributions to society.
PROJECT MAYANG HELPING INDONESIAN CHILDREN THRIVE To date,she and 400,000 other Indonesian children have benefited from the Heinz Micronutrient Campaign,making Project Mayang our most successful program.
Chairman, President and CEO,William R. Johnson was presented with the Global Visionary Award from Helen Keller International for the Companys important work in this critical area.
PROJECT MEI LI A PARTNERSHIP FOR THE CHILDREN OF CHINA Heinz nutritionists in China have developed NurtureMate, a heat-resistant and water-soluble micronutrient product.
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PROJECT ASHOK IMPROVING THE HEALTH AND LIVES OF CHILDREN IN INDIA In 2006, UNICEF designated Heinz India as one of its two official partners in the distribution of micronutrient sachets.
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HEINZ EUROPE
Factories
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Turnhout, Belgium Kendal, England Kitt Green, England Leamington, England Okehampton, England Telford, England Westwick, England Worcester, England Pont-de-Briques, France Seclin, France Seesen, Germany Dundalk, Ireland Latina, Italy Ozzano Taro (Parma), Italy Midzychd, Poland Pudliszki, Poland Georgievsk, Russia Ivanovo, Russia Otradnoe, Russia La Llanada, Spain
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Offices
A B C D E F G H I J K L M N
Hayes Park, Hayes, Middlesex, England Turnhout, Belgium Prague, Czech Republic Grimsby, England Paris, France Dsseldorf, Germany Dublin, Ireland Milan, Italy Warsaw, Poland Moscow, Russia St. Petersburg, Russia Madrid, Spain Helsingborg, Sweden Zeist, The Netherlands
Heinz Europe accounts for roughly a third of the Companys total sales and has undergone an extensive renovation of its product portfolio in recent years to focus on core brands and categories.The business has redirected the proceeds from divestitures and the savings from reduced costs into innovative new products like Heinz Taste of Home soup in the U.K., Pudliszki jarred home-style meals in Poland and Honig meal kits in the Netherlands, in addition to increased marketing investment. In 2005, the HP and Lea & Perrins brands joined the Heinz family of iconic sauces. In 2006, the Heinz brand was voted as the U.K.s top food brand in the YouGov survey of Superbrands.The Brits cant get enough Heinz Beanz, purchasing 1.5 million cans per day. New twists on this venerable favorite include Snap Pots single-serve packages and Hidden Veg, a childrens range that includes a serving of pureed vegetables hidden in the tomato sauce.The U.K. factory at Kitt Green, Europes largest food factory, produces more than 1 billion cans per year of beans, soups and pasta meals. Heinz also owns Italys leading Infant/Nutrition brand, Plasmon.
Heinz Europe
Factories: Kitt Green, England; Kendal, England;Telford, England; Leamington, England; Okehampton, England;Westwick, England;Worcester, England; Dundalk, Ireland Brand Names and Licensed Trademarks: Heinz/ Farleys/ TinyTums/ Weight Watchers/ Aunt Bessies/ Alveston KitchensTM/ American DreamsTM/ Lea & Perrins/ HP Sauce/ Daddies/ Amoy/ Ross
Factories: Latina, Italy; Ozzano Taro (Parma), Italy Brand Names and Licensed Trademarks: Plasmon/ Nipiol/ Dieterba/ Aproten/ Bi-Aglut
ITALY
Factories: Pont-de-Briques, France; Seclin, France; La Llanada, Spain; Pudliszki, Poland; Midzychd, Poland; Ivanovo, Russia; Georgievsk, Russia; Otradnoe, Russia; Seesen, Germany; Utrecht, Netherlands; Nijmegen, Netherlands; Elst, Netherlands; Turnhout, Belgium Brand Names and Licensed Trademarks: Heinz/ Orlando/ Pudliszki/ Midzychd / Derevenskye/ Picador/ Mechta Hozyayki/ Moya Semya/ Matrenkino/ Pokrovskoye/ Istochnik/ Sonnen Bassermann/ Weight Watchers/ Plasmon IF Specialties/ ABCTM/ Honig/ De Ruijter/ Venz/ Kwatta/ Roosvicee/ Karvan Cvitam/ Brinta/ HP/ Amoy/ Lea & Perrins/ Bndicta/ Wyko
CONTINENTAL EUROPE
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In Italy, the Plasmon name is the golden standard for Infant/Nutrition excellence. The U.K. is the biggest bean eating nation in the world! More than 1.5 million cans of Heinz Beanz are sold each day.
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Factories: Aligarh, India; Bangalore, India; Daan Magot, Indonesia; Karawang Timur, West Java, Indonesia; Pasuruan, East Java, Indonesia; Panyu, Guangzhou; Tianjin; Chengdu; Baiyun District, Guangzhou; Zhejing; Yantang, Guangzhou; Qingdao, Peoples Republic of China Brand Names and Licensed Trademarks: Heinz/ Ore-Ida/ Glucon-D/ Nycil/ HEINZ WATTIES, LTD. Complan/ Sampriti/ ABC/ Meiweiyuan / Golden Mark / LongFong / Factories: Fredrick St., Hastings, New SinSin Zealand; Gisborne, New Zealand; Auckland, New Zealand; Christchurch, H.J. HEINZ COMPANY AUSTRALIA, LTD. New Zealand; King Street, Hastings, New Zealand; Tomoana, New Zealand Brand Names and Licensed Trademarks: Factories: Echuca, Victoria, Australia; Watties/ EtaTM/ Farex/ The Good Taste Girgarre, Victoria, Australia; Port Company/ Gourmet/ Hellaby/ Heinz Moresby, Papua New Guinea; Nurture Toddler/ OakTM/ Rival/ La WaggaWagga, New South Wales, Bonne Cuisine/ Golden Circle/ The Australia Brand Names and Licensed Trademarks: Original Juice Company Epicure/ Farex/ Greenseas/ Hamper/
Imperial/ Nurture Toddler/ Ox & Palm/ Tom Piper/ Watties/ Weight Watchers/ Roses/ Cottees/ Monbulk/ Ice Magic/ Cook At Home/ Heinz SteamFresh/ Wobblers/ Heinz Big N Chunky/ The Pure Start/ Big Red/ Jamie Oliver/ Heinz Very Special/ Golden Circle/ The Original Juice Company
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ABC is one of the worlds top soy sauce makers and Indonesias top consumer brand. Emerging markets accounted for $1.3 billion of sales in Fiscal Year 2008.
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AFRICA
SOUTH AMERICA
REST OF WORLD
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Rest of World
Heinzs Rest of World segment includes the Companys operations in Latin America, the Middle East and Africa. Led by Venezuela, which accounts for about half of Heinzs Latin America sales, Heinz enjoys a robust business growing sales at double-digit rates, with a strong presence in Ketchup & Sauces and Infant/Nutrition. Heinz also enjoys a strong trading business in the Middle East and its operations in South Africa provide a strategic footprint in that corner of the world.
LATIN/CENTRAL AMERICA
Factories: Guadalajara, Jalisco, Mexico; Monterrey, N.L., Mexico; San Joaquin, Carabobo, Venezuela; Maracay, Aragua, Venezuela; San Jos, Costa Rica Brand Names and Licensed Trademarks: Heinz/ Abal/ Chamula/ Constantina/ Ketchup Kickrs/ Delimex/ FleivorTM/ Paco Taco/ Gratines/ Nenerina/ Polly/ Sonrissa/ La Cumbre/ Heinz Kidz/ Banquete/ Tiquire Flores
SOUTHERN AFRICA
Factories:Wellington, South Africa; Atlantis, South Africa Brand Names and Licensed Trademarks: Heinz/ John West/ Wellingtons/ Big Jack/ Mamas/ Mans Meal/ Today/ Lea & Perrins/ HPTM
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Latin America is a growing market for Heinz, with the popularity of Infant/Nutrition foods and the momentum in Ketchup and Sauces.
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Health & Wellness products accounted for 60% of total sales in FY 2008.
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Heinzs line of Weight Watchers Smart Ones and Weight Watchers from Heinz foods are portion-controlled and support healthy eating plans.
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Lifestyle
O C U S
O N
O N S U M E R
E E D S
Heinz classifies its Health and Wellness initiatives into four categories based on how consumers view healthy food options:
Childrens Nutrition
Infants, toddlers, and children
Weight Management
Enables/promotes reduction, maintenance of weight loss
Health Management
Science-influenced foods & beverages
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Heinz removed trans fats from our entire line of Ore-Ida potatoes, which eliminated more than 13.3 million pounds of trans fat from the American diet.
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INVESTOR INFORMATION Securities analysts and investors seeking additional information about the company should contact investor relations at the World Headquarters address: One PPG Place, Suite 3100 P.O. Box 57 Pittsburgh, PA 15230 (412) 456-5700 CORPORATE DATA Transfer Agent, Registrar and Disbursing Agent (for inquiries and changes in shareholder accounts or to arrange for the direct deposit of dividends):
Wells Fargo Shareowner Services 161 N. Concord Exchange South St. Paul, MN 55075-1139 (800) 253-3399 (within U.S.A.) (651) 450-4064 www.wellsfargo.com/shareownerservices
TDD SERVICES BNY Mellon Shareowner Services can be accessed through telecommunications devices for the hearing impaired by dialing (800) 231-5469 (within U.S.A.) and by dialing (201) 680-6610 (outside of U.S.A). MEDIA INFORMATION Media seeking additional information about the company should contact corporate affairs at the World Headquarters address: One PPG Place, Suite 3100 P.O. Box 57 Pittsburgh, PA 15230 (412) 456-5700
H.J. Heinz Company World Headquarters P.O. Box 57 Pittsburgh, PA 15230-0057 (412) 456-5700 www.heinz.com
STOCK LISTING New York Stock Exchange, Inc. Ticker Symbols: Common HNZ Third Cumulative Preferred HNZ PR COPIES OF PUBLICATION Additional copies of this publication are available from the Corporate Affairs Department at the Heinz World Headquarters address or by calling (412) 456-5700. It is also available at www.heinz.com.
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Heinz.com
For the latest, up-to-date information about Heinz, be sure to visit our global corporate Web site, www.heinz.com. The content on Heinz.com is segmented into four key areas: Health & Wellness, Our Food, Our Company and Sustainability. Features include:
OUR FOOD:
Heinz global locations directory with key product details Delicious recipes featuring Heinz foods from around the globe Downloadable desktop backgrounds featuring favorite Heinz products Global brand advertisements and videos Heinz Ketchup widget allows users to squeeze Ketchup messages to friends and family
OUR COMPANY:
Interactive timeline takes visitors on a virtual adventure through Heinzs history Sampling of Heinz career paths and a tool to search for open positions at Heinz Employee video testimonials Real-time Heinz news updates and RSS feeds of Heinz news
SUSTAINABILITY:
Heinzs sustainability goals and commitments Heinz Corporate Social Responsibility report Key sustainability initiatives, including the HeinzSeed program and the Heinz Micronutrient Campaign