Positioning for Future Growth
Heinz continues to execute the long-term growth plan that delivered solid results in Fiscal Years 2008 and 2009.
To grow the core portfolio, we continue to invest in marketing and innovation to sustain the growth of our leading brands. In the last three fiscal years, for example, Heinz increased marketing spending by 30% to support our leading brands with creative broadcast, print and Internet campaigns, as well as greater point-of-purchase promotions. We also increased R&D spending by more than 40% in the same period.
We believe innovation is one of the keys to growth for consumer product companies like Heinz, which is why we continue to focus on developing new products, recipes and packaging at our Global Innovation and Quality Center in Pennsylvania.
We also believe that Emerging Markets will be a key growth driver. Heinz is well positioned in these markets, which delivered a high percentage of our sales growth in Fiscal Years 2008 and 2009, and we expect to continue investing in the growth of our Emerging Markets businesses.
To accelerate growth, Heinz continually explores strategic options such as acquisitions, mergers and joint ventures. Since Fiscal 2002, Heinz has shed non-core businesses with total revenue of approximately $3 billion and acquired focused businesses with combined revenue of about $2 billion that complemented our Core Portfolio.
As a result, Heinz has become a leaner, more competitive, faster-growing company with a sharply focused global portfolio that leverages our strengths and our scale.
We are confident in the future because we believe that Heinz has the plan, the portfolio, the brands, the management and the track record to continue to deliver growth and performance for our shareholders.