Packaging’s contribution to our sales growth Richard Heath Process & Packaging Development Manager Food and Drink Innovation Network seminar 16th June 2011 Heinz, since 1869…. • 1869 in Pittsburgh founded by Henry J. Heinz Packaging was key at the beginning – Horseradish in clear glass jars to show that the product was pure • Today: $10.5B Sales and top 10 global player in Food 33,000 employees worldwide 76 production sites globally Three value added Categories: Ketchup & Sauces / Convenience Meals / Infant Nutrition 650 million bottles of the iconic Ketchup sold every year Market leader with brands in more than 50 global markets Page 1 Top 15 Brands Approximately 70% of Sales 2 Page 2 Our 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. Page 3 Innovation and Growth – a new vision for Innovation within Heinz Europe Page 4 ‘Must Win’ Encounters • Mastering the 4 ‘Must Win’ encounters is key to successful New Product Development: 1. At the Buyers Desk 2. On the shelf 3. The package journey: Shelf End of life 4. The taste experience • Packaging plays a crucial role in the first three encounters and has been a major contributor to increasing our sales from NPD • The taste experience is the key to repeat sales Page 5 Recent successes…. Snap Pots • Convenient microwaveable plastic pots – 4 x 200g • Portion control helps reduce food waste • 35% to 55% lighter than cans • Reduced Salt & Sugar Beanz added to original Beanz and Hoops packs Page 6 Recent successes…. Farmers’ Market Soups • New range to meet Goodness / Healthy trend • Used cans in line with core Soups ranges but modified to ensure shelf stand out – 515g – Taller can Page 7 Recent successes…. Taste Of Home Soups • New range of ‘meal’ soups • Heat and eat packaging – Microwaveable plastic pot – Heat resistant label • Recently rebranded as part of the Big Soups range plus SRP redesign to improve shelf stand out Page 8 Recent successes…. Amoy Stir Fry Sauces • Packaging lightweighting – cartonboard sleeve removed • Contemporary design to enhance premium positioning • Logistics benefits Page 9 Recent successes…. PET Sauces Bottles • Clear glossy material to reinforce premium positioning • Bottle weights reduced by up to 16% • Recyclable with PET drinks bottles Plus more Top Down Sauce Bottles • HP BBQ Sauces Page 10 Recent successes…. Fridge Pack Beanz • Convenient 1kg resealable plastic bottle • Can be stored in the fridge for 5 days after opening • Portion control, with level markings, to help reduce food waste • 48% lighter than cans Page 11 Which trends are these innovations addressing? Product Trends • Packaging format used to highlight new products and ensure stand out on shelf Packaging • Convenience • Microwaveability • Portion control / Waste reduction • Sustainability – becoming expected Page 12 Trends New Product Snap Pots Farmers’ Market Soups √ Taste Of Home Soups √ Convenience Microwaveable Portion Control Sustainability √ √ √ √ √ √ Amoy Stir Fry Sauces √ PET Sauces Bottles √ Fridge Pack √ √ Page 13 √ The Value Equation V = Σb1…....bn P V = Value b = Benefit P = Price Page 14 What’s Next ? • Range extensions in new formats? • New sizes for portion control? • New formats? Our next round of innovations will be in a store near you this summer Page 15 Thank You For Listening Page 16
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