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Ore Ida, Weight Watchers boost H.J. Heinz as multinational sees more global growth.

Ore Ida, Weight Watchers Boost H.J. Heinz As Multinational Sees More Global Growth

Buoyed by strong sales increases in Ore Ida frozen potatoes, Weight Watchers food products, tuna and foodservice ketchup, H.J. Heinz Co. reported a second quarter sales gain of 11.7% on volume of $1.425 billion. Net income for the period, which ended Oct. 26, was almost $110 million, or 83 cents per share, compared to $96 million or 72 cents per share during the previous fiscal year's second quarter.

Now doing more than $5 billion in annual sales, Heinz's 12.5% five-year compound growth in net income ranks it first among peers, according to Dr. Anthony J.F. O'Reilly, CEO of the Pittsburgh-based multinational company.

O'Reilly underlined the scope of the firm's international game plan during a recent stockholders' meeting. Excerpts from his remarks follow:

"In formulating our strategy, we're particulary conscious of changes in the global market-place. For example, close to home, the United States/Canada free trade agreement would have major implications for operations in North America.

"Further afield, the 12 countries of the European Community are working to create, by 1992, the largest single market in the world -- 320 million people. Inside (the EEC), the dismantling of trade barriers will provide important growth opportunities to those companies that are in a position to grasp them. We intend to be one of those companies.

"It is not inconceivable to think that in the mega-market of post-1992, all our ketchup in Europe could be sourced from one single location -- perhaps Spain or Portugal. In effect, the challenge would be to make Heinz ketchup as ubiquitous a product in the global market for condiments as, say, Coca-Cola is for soft drinks.

"It is not inconceivable that we will develop one single seafood location for the European market. And...our recent acquisitions in Spain and Portugal already make Southern Europe a major Heinz manufacturing center, not just for those countries, but for all of Europe.

"It is not inconceivable that Heinz-U.K. -- if it achieves revised production and costs targets -- will become the major Heinz manufacturing location for recipe foods for all of Western Europe."

Heinz's Weight Watchers brand -- coupled with the meetings side of the business -- will be in the vanguard of the European push. The company's billion dollar unit recorded sales growth of 18% in its frozen desserts operation last year. "That's an extraordinary feat in an industry that usually grows at 1% to 2% a year," said O'Reilly. "And this year our operating income for Weight Watchers will exceed $100 million, the very price we paid for the company 10 years ago."

Treats ranging from raspberry mousse to Black Forest cake are only part of the low calorie lineup. In addition, the packer offers side dishes such as French-style rice and cauliflower florets in addition to the Genniesserplan entree and salad range in Germany. A new line of Mexican entrees was recently rolled out in the United States to mark the label's silver anniversary.

PHOTO : Heinz's Foodways National unit is marketing Weight Watchers label Mexican-style entrees in

PHOTO : the U.S. At 310 calories, this 260g Beef Enchiladas Ranchero offering retails for $2.89.

PHOTO : The palatial Le Chateau Frontenac was the place and `Thriving in the `90s' was the theme

PHOTO : of last autumn's Chilled and Frozen Food Association of Canada Convention in Quebec City.

PHOTO : Standing in for the CFFA's official 1988-89 board of directors photograph are (front row,

PHOTO : I-r): Guy Emard, Blue Water Seafoods; Gary Barnes, Coca-Cola Foods Canada, Inc.; Ron

PHOTO : Whynacht, National Sea Products Ltd.; Peter Johnson, McCain Refrigerated Foods; David

PHOTO : Fardy, Cavendish Farms; Bob Thickett, Omstead Foods Ltd.; Michael Schaeffer, Pillsbury

PHOTO : Canada Ltd. Also (middle row, I-r): Eben James, Produce Processors Limited; Yves

PHOTO : Provencher, Provigo Distribution Inc.; Gary Adams, Hickeson-Langs Supply Co. Ltd.; Martin

PHOTO : Cox, Canada Safeway; Howard Rich, Rich Products of Canada Ltd.; Chris Kyte, Chilled and

PHOTO : Frozen Food Association of Canada; Angelo Raso, Campbell Soup Co. Ltd. Also (back, I-r):

PHOTO : Reynald Gagne, Dellixo Inc.; Dave Somerset, Tempo Sales; Archie McLean, McCain Foods Ltd.;

PHOTO : Ted Graham, VS Services Ltd.; David Senecal, Clouston Foods Canada; Bill Ed Marra, Nestle

PHOTO : Enterprises Ltd.
COPYRIGHT 1989 E.W. Williams Publications, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1989 Gale, Cengage Learning. All rights reserved.

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Title Annotation:frozen food industry
Publication:Quick Frozen Foods International
Date:Jan 1, 1989
Words:704
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