Packaging’s contribution to our sales growth

Richard Heath

Process & Packaging Development Manager

Food and Drink Innovation Network seminar16th June 2011

Heinz, since 1869….

•1869 in Pittsburgh founded by Henry J. Heinz

Packaging was key at the beginning – Horseradish in clear glass jars to show that the product was pure

•Today:

$10.5B Sales and top 10 global player in Food

33,000 employees worldwide

76 production sites globally

Three value added Categories:

Ketchup & Sauces / Convenience Meals / Infant Nutrition

650 million bottles of the iconic Ketchup sold every year

Market leader with brands in more than 50 global marketsPage 2

Top 15 Brands

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Approximately 70% of SalesApproximately 70% of Sales

As the trusted leader in nutrition and wellness, Heinz – the original Pure Food Company – is dedicated to the sustainable health of people, the planet and our Company.

Our Mission

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Innovation and Growth – a new vision for Innovation within Heinz Europe

Our vision is for a new innovation culture at

Heinz that delivers a balanced pipeline:

a stream of product improvements and line

extensions that create consumer and

customer noticeable differences;

value engineering to keep us competitive in

the market;

and a small number of big and meaningful

innovations that we drive and support

across the region

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‘Must Win’ Encounters

• Mastering the 4 ‘Must Win’ encounters is key to successful New Product Development:

1. At the Buyers Desk

2. On the shelf

3. The package journey: Shelf End of life

4. The taste experience

• Packaging plays a crucial role in the first three encounters and has been a major contributor to increasing our sales from NPD

• The taste experience is the key to repeat sales

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Recent successes….

Snap Pots

• Convenient microwaveable plastic pots – 4 x 200g

• Portion control helps reduce food waste

• 35% to 55% lighter than cans

• Reduced Salt & Sugar Beanz added to original Beanz and Hoops packs

Recent successes….

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Farmers’ Market Soups

• New range to meet Goodness / Healthy trend

• Used cans in line with core Soups ranges but modified to ensure shelf stand out

–515g

–Taller can

Taste Of Home Soups

• New range of ‘meal’ soups

• Heat and eat packaging

– Microwaveable plastic pot

– Heat resistant label

• Recently rebranded as part of the

Big Soups range plus SRP redesign to improve shelf stand out

Recent successes….

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Amoy Stir Fry Sauces

• Packaging lightweighting – cartonboard sleeve removed

• Contemporary design to enhance premium positioning

• Logistics benefits

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Recent successes….

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Recent successes….

PET Sauces Bottles

• Clear glossy material to reinforce premium positioning

• Bottle weights reduced by up to 16%

• Recyclable with PET drinks bottles

Plus more Top

Down Sauce Bottles

• HP BBQ Sauces

Fridge Pack Beanz

• Convenient 1kg resealable plastic bottle

• Can be stored in the fridge for 5 days after opening

• Portion control, with level markings, to help reduce food waste

• 48% lighter than cans

Recent successes….

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Which trends are these innovations addressing?

Product Trends

• Packaging format used to highlight new products and ensure stand out on shelf

Packaging

• Convenience

• Microwaveability

• Portion control / Waste reduction

• Sustainability – becoming expected

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Trends

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New Product

Convenience Microwaveable Portion Control

Sustainability

Snap Pots √ √ √ √Farmers’ Market Soups √

Taste Of Home Soups √ √ √Amoy Stir Fry Sauces √PET Sauces Bottles √Fridge Pack √ √ √

V = Σb1…....bn

P

The Value Equation

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V = Value

b = Benefit

P = Price

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What’s Next ?

• Range extensions in new formats?

• New sizes for portion control?

• New formats?

Our next round of innovations will be in a store near you this summer

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Thank You For

Listening