presented by group c: arby artoonian, jessica thomas, richard orozco, alex fajardo & sam...
TRANSCRIPT
Company Analysis of H.J. Heinz
Presented by Group C:Arby Artoonian, Jessica Thomas, Richard Orozco, Alex Fajardo &
Sam Hacopian
February 13, 2012
Heinz is a leading producer of ketchups world wide with over “57 varieties” of ketchup.◦ Other products: Frozen foods, soups, pastas, infant
formula & other foods◦ Their product reaches over 200 countries through
manufacturing plants in 6 continents Heinz’s product is sold & distributed through
its own sale organizations, independent brokers, agents & distributors to a variety of stores ranging from large wholesale stores to small convenience stores around the world.
H.J. Heinz the Company
Heinz products are top quality products due to extensive: sterilization, blending, fermentation, pasteurization, homogenization, chilling and many other factors. ◦ The company’s products are manufactured &
packaged to provide safe, wholesome foods for all consumers.
The company is supported by 35,000 employees who work hard on perfecting the product and developing new & nutritious foods for today’s families.
H.J. Heinz the Company-Continued
H.J. Heinz the Company-Continued
William Johnson Age Salary
Chairman,President,Chief Executive Officer 61 1,245,211
Theodore Bobby Age
Executive Vice President,General Counsel 59
David Moran Age Salary
Executive Vice President,Region Officer 52 662,345
C. O'Hara Age Salary
Executive Vice President,Region Officer 49 647,287
Arthur Winkleblack Age Salary
Executive Vice President,Chief Financial Officer 53 647,318
Key Executives
Supplier diversity is the self-proclaimed key to success for this company. This policy is extremely vital to the advantage of this company both internally and externally.◦ Five consumer segments: North America, Europe,
Asia-Pacific, Latin America, & Africa. Emerging Markets are driving the growth of
Heinz, which has solid growth platforms in Brazil, Russia, India, China and Indonesia.
External Factors
Revenues Operating Income
Report Date
04/27/2011 04/28/2010 04/29/2009 04/27/2011 04/28/2010 04/29/2009
Currency USD USD USD USD USD USD
Scale Thousands Thousands Thousands Thousands Thousands Thousands
North American Consumer Products
3,265,857 3,192,219 3,135,994 832,719 771,497 724,763
Europe 3,236,800 3,332,619 3,410,735 581,148 554,300 561,260
Asia/Pacific 2,320,789 2,007,252 1,627,443 221,580 195,261 182,472
U.S. Foodservice
1,413,456 1,429,511 1,505,953 175,977 150,628 129,209
Rest of World
469,686 533,382 467,957 53,371 69,219 52,348
Total 10,706,588 10,494,983 10,148,082 1,864,795 1,740,905 1,650,052
Heinz’s Performance
•Heinz have succeeded in the past 3 years due to its:
• High operating income
• High revenues
The company’s performance may be impacted by the changes in laws and regulations of food and drug laws in the U.S. and abroad.
Increased costs and availability of raw materials also can affect the financial status. Failure to put growth plans in affect can also add to the inability to increase net income and to generate cash.
Other major challenges facing Heinz in the past five years include the dependence on Wal-Mart for revenue, product recalls, presence in emerging markets, intense competition, stringent relations, and increased labor costs.
Major Challenges in the past 5 years
Kraft and Nestle are Heinz biggest competitors. Kraft is one of the biggest producers of food products in the U.S.
Strict regulations Increasing labor
costs
Major Challenges in the past 5 years
FY2006FY2007FY2008FY2009FY2010FY20110
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Cash of Operating Activities
Cash of Operating Activi-ties
Intense Competition Increase in Labor
Costs High reliance on
Wal-mart Product recalls Regulations
Major Challenges Heinz is currently facing
New products Keep strong and
dominant brand image
Grow in emerging markets
Managements Strategy to deal with current challenges
Heinz set out strategic plans
Heinz analyzed external environment
Set objective of acquiring international companies
Great financial growth over the years
Planning Process of HJ Heinz