Growing the Core Portfolio

Heinz once again rose to the challenge of growing our core portfolio. The Company’s Top 15 brands, while generating around 70% of sales, grew 5.7% behind significant increases in innovation and marketing. Sales of Heinz® Ketchup grew around the world, strengthening its position as the number-one brand in seven of the world’s top 10 ketchup markets, including the United States. Across Europe, Ketchup grew a robust 7.2%, led by excellent results in Russia, the world’s second-largest ketchup market. U.S. Foodservice reported higher operating profit, reflecting our success in simplifying the business, although sales declined as a result of the recession’s impact on consumer dining and restaurant traffic. Overall, the Company’s sales grew in each of our core categories—Ketchup and Sauces, Meals and Snacks and Infant/Nutrition—and Heinz delivered organic sales growth (volume plus price) in every quarter of Fiscal 2010. We have now delivered twenty consecutive quarters of organic sales growth.