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The line between at-home and away-from-home eating continues to blur. In order
to respond more effectively to this trend, Heinz’s North American retail business and its
U.S. foodservice unit have united to enhance each other’s strengths across all sales
channels. The integrated business represents nearly half of Heinz’s global sales and
operates under the dynamic leadership of Dave Moran, President and CEO of Heinz
North America. We began running Heinz® ketchup as “one brand” in Fiscal 2007 with a
common strategy, innovation pipeline, and marketing platform, and have generated
strong results. Demonstrating the capabilities of our new integrated approach, we
launched our consumer-generated advertising campaign for Heinz ketchup across
the retail and foodservice channels. Moving forward, we are excited about the
opportunities this new business structure presents. The North American business posted
yet another solid year of sustained growth in Fiscal 2007 as its robust new product
pipeline continued to connect with consumers. Marketing spending in the retail business
increased 40% versus last year in support of superior taste and new varieties in
Weight Watchers® Smart Ones® meals and desserts, reduced sodium Bagel Bites®
snacks, and our new line of Ore-Ida® roasted potatoes. We expect this investment to
ignite a strong start to Fiscal 2008.
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