H.J. Heinz Company Alan Archer MGMT 6650

Mission and Values Mission “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.” Core Values Team Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals. Innovation - We spot consumer and customer needs and meet them with simple, creative solutions. Vision - We define a compelling, sustainable future and create the path to achieve it. Results - We deliver on commitments, take accountability and balance the short- and long-term. Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

History 1869 – Founded by Henry Heinz, The Heinz Co. packaged its first product in clear bottles to show customers its purity – Heinz Ketchup makes its debut The iconic glass bottle is introduced 1968 – The individual foil ketchup packages hit the market 1983 – Heinz unveils the first plastic squeeze bottle 1990 – First recyclable bottle hit the shelves 2002 – The first upside- down bottle arrives 2002 – Heinz introduces spicy and other flavored ketchups 2010 – Simply Ketchup line launches: made only from natural ingredients and spices 2011 – Heinz partners with Coca-Cola to make all bottles with PlantBottle packaging; uses up to 30% renewable plant-based material per bottle Dip and Squeeze packages hit stores 2013-H.J. Heinz Company announces sale to Berkshire Hatheway on February 14, 2013.

Leadership / Key Players Henry J. Heinz Bob Ostryniec William R. Johnson Bernardo Hees

Business Facts Over 5700 products Sells products in over 200 countries. 50+ % U.S. Market Share in Ketchup 45% U.S. Market Share in Tuna (Starkist) 50+% U.S. Market Share in frozen potatoes (Ore-Ida) Heinz sells 650 Million Bottles of Ketchup per annum, as well as 2 single serve packets for every person on earth. Company boasts 150 #1 or #2 rated products worldwide.

Stock Price Up 95% from March 2009 to 2013 Heinz (HNZ until 6/7/13 ) is sold for $72.50 / share. (19.87% above pre-announcement close of $60.48)

10 Year Goals Goal Category20%15%10% Energy ConsumptionDecrease GHG Green House EmissionsDecrease Solid Waste ReductionsDecrease Water ConsumptionDecrease Renewable EnergyIncrease Transportation CostDecrease Packaging MaterialsDecrease

Lean / Six Sigma Bob Ostryniec introduces Six Sigma into the Heinz culture in Implements program to train all employees at yellow or green belt levels. Used Lean Sigma to implement a new production process. Instead of status quo measures at the end of the day, they monitor the lines every hour or two and make adjustments accordingly. Efficiencies are monitored in real-time through HOTS (Heinz Operational Tracking Systems). Results are posted at the end of the day to inform workers of how they are performing. Heinz seeks to combine their most successful tools and processes into one production process called (HGPS) Heinz Global Performance System (2009)

Improving Packaging Reuse Reuse packaging components where possible throughout the supply chain to minimize material waste and its associated carbon footprint (e.g., reusable totes, pallets, slip sheets). Reduce Optimize designs to minimize use of packaging materials while ensuring product protection throughout the supply chain and proper performance for our consumers (e.g., eliminate components, light-weighting). Recycle Utilize recyclable materials where possible. Incorporate post-consumer recycled content where feasible. Renew Evaluate and utilize packaging materials derived from renewable sources where feasible to reduce carbon footprint.

Select Packaging Reductions New Zealand Heinz-Wattie’s began studies on the effect of lighter cans through the manufacturing process and supply chain. Reduced highest volume can gauge from.23mm to.16mm. Cutting both cost and waste. Of the 270 million cans produced in Fiscal Year 2010, 240 million were down-gauged, representing nearly 90% of all canned production. By down-gauging 240 million cans, Heinz saved more than 1,000 tons of tin plate from being produced for our use.

Select Packaging Reductions U.S.A Weight Watchers® Smart Ones® Trays Use 40% less plastic than the previous tray Replacing plastic with calcium carbonate, a natural mineral, has cut GHG emissions of applicable packaging by 45% to 55% More durable microwave-only tray Reduce tray weight by 15% Ore-Ida® Stand-Up Pouch Redesigned packaging to reduce material usage and improve functionality 15% reduction in material Reduces resin usage by 402 metric tons 26% reduction in CO2 per unit Elimination of nylon to enable recycling of scrap pouch material Classico® Pasta Sauce Jars Improved ergonomic glass design Improved footprint to reduce supply chain damage Redesigned for optimal glass weight distribution 12% reduction in packaging per unit 18% reduction in CO2 per unit

Conclusion H.J. Heinz Company has continuously pursued innovation. Through Lean /Six Sigma Heinz has improved both production processes and packaging materials. Continued dedication to improvement could serve as a competitive advantage.

Sources hathaway-and-3g-capital-complete-acquisition-hj-heinz- company

Q & A