HEINZ: MORE THAN JUST KETCHUP
Friday, June 19, 2009
Established in 1909 in Leamington, Ont., Heinz Canada has grown tremendously since its first manufacturing plant began producing bottled horseradish – the company’s premier product offering. Today, Heinz is a leading marketer and producer of foods (both retail and food service) in three categories – ketchup and condiments, convenience meals and infant feeding.
In celebration of Heinz Canada’s 100th anniversary, the world’s most famous ketchup-maker is distributing 70 million limited edition single-serve ketchup packs. Featuring fun facts about Heinz and ketchup, the packs are being distributed to independent food service operators and distributors across the country until Aug. 31.
Additionally, the original “Pure Food Company” has updated its 375 ml and 575 ml bottled ketchup packaging with special anniversary labels, created the Great Canadian Heinz Ketchup Cake – the perfect dessert for any occasion – and commissioned a history book to be written. Yet to be published (and distributed exclusively to Heinz Canada employees), communications and corporate affairs leader, Joan Patterson, and senior product manager, Phillip Pavlov, provide FoodService News with an exclusive snapshot of the company’s colourful history and insight into its continued success.
FSN: Why did H.J. Heinz choose Leamington, Ont., as the birthplace of Heinz Canada?
JP: Actually, what most people don’t know is Heinz originally had an operation in Burlington, Ont., but he soon realized it wasn’t going to be big enough.
FSN: How many stock keeping units (SKUs) does Heinz Canada produce annually?
JP: We produce 1,400 SKUs in our three key categories: ketchup and condiments; convenience meals, which includes soups, beans, frozen or chilled products and dressings; and infant feeding, from formula to jarred cereals to infant snacks.
FSN: What is Heinz’s acquisition mantra?
JP: We don’t acquire businesses to run them. We acquire them to grow them. Take Renée’s Gourmet, which we purchased in November 2006. Renée herself is still very involved in all new product development from a flavour perspective.
PP: Inorganic growth is not something we rely on too heavily. We focus on our core portfolio – what we had before the acquisition – and continuously try to improve the metrics on the brands we run.
FSN: Heinz launched its Red Thai sauce to food service in summer 2008. Has the response been positive?
PP: We’ve had terrific feedback. It’s highly on trend with the growing demand for Asian-inspired cuisine.
FSN: Can you tell me about any new product launches on the horizon?
PP: We’re working on introducing organic ketchup to food service in September 2009 and we’re re-launching A1 sauce for food service.
FSN: What’s involved in developing a new product?
PP: Launching a new product involves multiple exercises, including consumer research because whether we sell in food service or retail it is the consumer that is eating the product. We also do market analysis, which is basically looking at the category, its size and trends, taking into consideration all key trends. Right now that includes health and wellness, convenience, sustainability and “value versus quality.” Consumers want quality products, which big brands represent, but with the economic downturn they demand value. You can provide greater value through larger packaging, improved formula and bolder tastes.
FSN: Can you tell me about any other emerging food trends?
PP: Branding food products is another trend that has been in the industry for awhile but is starting to really catch on. In the food service channel, big brands have proven to deliver value to operators. When a customer goes to a restaurant, he or she is reassured it’s going to be a positive dining experience when the establishment has strong brands, whether it’s a condiment or a product or a combination of the two. Research has shown people have a strong preference for brands and often enjoy their food more when, for example, they know Heinz ketchup is being served with their burger.
FSN: What sets Heinz apart from other food processing companies?
JP: Heinz isn’t a multinational company that makes products and ships them all over the world; we’re multinational because we have base operations in the various regions in which we do business. For example, 75 per cent of what we sell in Canada is made in Canada using Canadian ingredients, whenever possible.
PP: We’re equally strong and knowledgeable in both (food service and retail) channels, which is unique as not a lot of food companies are.
FSN: With sustainability at the forefront of many peoples’ minds can you tell me about some of the “green” measures Heinz Canada is taking?
JP: We have a cogeneration plant in Leamington that generates approximately 53-million kilowatt hours a year. The plant only consumes 31-million kilowatt hours annually, so 30 per cent of the power in our Leamington plant is returned to the grid. We basically return enough power to the grid to power a city the size of St. Marys, where Heinz Canada’s second manufacturing plant is located. Also, the waste heat (that is captured) in our Leamington plant supplies about 20 per cent of the steam load in the plant and we have a bean fryer condensation recovery system that was implemented in 2008. In St. Marys, we have a sludge dewatering system.
FSN: To what do you attribute the company’s success?
JP: Part of the reason we’re 100 years old is we’ve been really good at managing the business and looking far enough ahead to figure out what we have to do to stay healthy and deliver on the promises we’ve made both internally and externally.
PP: Where would we be as a company without our loyal customers and consumers? Our brands and people are also behind the company’s success.
FSN: What is pivotal to Heinz Canada’s continued success?
JP: Not deviating or doing anything that would compromise the quality of our products and continuing to listen to our customers and consumers.
PP: Continuously raising the bar as a company. We can’t just sit on our laurels. We have to continuously challenge ourselves to become a better business and address consumer needs in a better way.
FSN: To celebrate its 100th anniversary Heinz Canada is distributing 70-million limited edition single-serve ketchup packs to the food service industry, all of which feature a Heinz fun fact. In researching the company’s history, can you tell me about something you learned?
JP: Our founder, Henry John Heinz, was a pioneer in that he decided to sell his first product, horseradish, in a clear glass jar. At the time, everyone sold horseradish in a brown or coloured glass jar because many companies adulterated (their product) with sawdust. Heinz said he wasn’t going to do that; he was going to sell a quality product packaged in a clear container so people could see exactly what they were buying. Heinz was also one of the only industry supporters of the U.S. Pure Food and Drug Act (of 1906), which later became the federal Food, Drug and Cosmetic Act (in 1938). He was not very popular at that time.
10 HEINZ QUICK FACTS
1. Heinz North America accounts for 45 per cent of Heinz’s sales worldwide.
2. Canada boasts 12 brands that are number one in their respective categories. Familiar brands include Heinz, Chef Francisco, Richardson, Classico, Bagel Bites, HP Sauce, Lea & Perrins, Renée’s Gourmet, Diana, Weight Watchers, SmartOnes.
3. There are 25 tomatoes in one-litre of Heinz Ketchup.
4. Tomatoes in Heinz Ketchup are grown from special Heinz seeds.
5. Heinz tomato seeds went into space for Tomatosphere, an educational project.
6. Approximately 98 per cent of all the tomatoes used to make ketchup, tomato juice and other tomato-based products are grown in southwestern Ontario.
7. Four tablespoons of Heinz Ketchup have the same nutritional value as one ripe, medium tomato.
8. Launched in 2001, the Heinz Micronutrient Campaign distributes vitamins and minerals essential to development to young children in developing regions. Heinz has made a commitment to reach 10 million children by 2010.
9. Heinz Canada employs more than 1,300 people across the country.
10. To thank consumers for 100 years of support, Heinz Canada is giving Canadians the chance to win $25,000 or one of 100 instant win Broil King barbecues with the Heinz Ketchup Fan of the Century contest.
