Trade Visit Report H.J. HEINZ - U.S. Dry Beans
12
Trade Visit Report H.J. HEINZ November 12, 2012 Marketbase 71 avenue Bosquet, 75007 Paris, FRANCE Tel. 33 (0) 1 45 51 36 03 / Fax 33 (0) 1 47 53 72 85 Email: [email protected]
Transcript of Trade Visit Report H.J. HEINZ - U.S. Dry Beans
Trade Visit Report
H.J. HEINZ
November 12, 2012
Marketbase
71 avenue Bosquet, 75007 Paris, FRANCE Tel. 33 (0) 1 45 51 36 03 / Fax 33 (0) 1 47 53 72 85
Email: [email protected]
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 2
FAS Trip Summary:
Trip Title: H.J. Heinz, Netherlands
Trip Start Date: November 12, 2012
Trip End Date: November 12, 2012
Trip Locations: Zeist
Trip Country: Netherlands
Trip Person: Johanna Stobbs, USDBC representative
Trip Itinerary November 12 • Air France flight #1340, leaving Paris at 7:55 a.m., arriving Amsterdam (Netherlands)
at 9:10 a.m. • Train from Schiphol Airport (Amsterdam) to Driebergen-Zeist train station • Taxi from Driebergen-Zeist train station to H.J. Heinz offices • Taxi from H.J. Heinz offices to Driebergen-Zeist train station • Train from Driebergen-Zeist to Schiphol Airport (Amsterdam) • Air France flight # 8239, leaving Amsterdam at 4:20 p.m., arriving Paris at
5:40 p.m. Trip Purpose H.J. Heinz, one of the principal buyers in the world of US navy beans, has recently moved its purchasing department for dry beans from Kitt Green (Wigan) in the UK to Zeist, in the Netherlands. In addition, H.J. Heinz now has a new Purchasing Director, Matthew McMichael, whose title is Global Category Lead – Beans and Pulses. Given these fundamental changes, the US Dry Bean Council representative, Johanna Stobbs, requested a meeting with M. McMichael to review Heinz’s buying procedures, its dry bean procurement needs and its strategy for the future. Another objective of the trade visit was to present to M. McMichael an itinerary and a meeting schedule for a trip that he would like to make to Michigan during the month of December 2012. The purpose of this trip would be to have one-on-one discussions with US processors and growers of navy beans.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 3
United Kingdom 2011 Jan-Sept 2011
Jan-Sept 2012
Product Qty (MT) Qty (MT) Qty (MT) Period % Change (Qty)
Navy Beans 33,047.2 27,070.5 35,140.2 + 30%
Lima Beans (NES – not elsewhere specified) 1,501.4 379.2 0.0 -
Beans, NESOI (not elsewhere specified or indicated) 288.3 233.5 0.0 -
Black Beans 391.8 349.1 0.0 -
Dark Red Kidney Beans 162.4 162.4 95.3 -41%
Pinto Beans 39.0 1.8 20.4 +1,033%
Light Red Kidney Beans 10.7 0.0 17.6 -
Other Kidney Beans 0.0 0.0 2.5 -
Black Beans 0.0 0.0 320.0 -
Lima Beans, NES (not elsewhere specified) 0.0 0.0 838.1 -
Beans, NESOI (not elsewhere specified or indicated) 0.0 0.0 330.3 -
Broad Beans + Horse Beans 0.0 0.0 2.8 -
TOTAL DRY BEANS 35,440.9 28,196.5 36,767.2 +30%
GARBANZO BEANS 172.9 172.9 640.0 +270%
TOTAL DRY BEANS & GARBANZOS 35,613.8 28,369.4 37,407.2 +32%
FAS Statistics US Dry Bean Exports to the United Kingdom
9-month comparison, January-September 2011-2012
N.B. It is generally accepted that US navy bean exports to the UK are more than double the numbers shown above because large volumes pass through the port of Montreal, Canada, and are registered as exports to Canada.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 4
Trip Result The meeting with Matthew McMichael shed light on how H.J. Heinz has re-structured in order to secure raw materials in a more effective manner. The Heinz offices in Zeist, Netherlands, now constitute the principal organizational hub for the Heinz ingredients supply chain. Logistics, strategic planning and decision-making are now carried out under one roof. This streamlining has resulted in faster and more efficient corporate communication. Global Lead, Matthew McMichael, has worldwide procurement responsibility for dry beans and all pulses. 95% of the navy beans he purchases will continue to go to the UK, for canning. M. McMichael, in turn, reports to Bert Speulman, the Director of Ingredients. M. McMichael, whose background includes experience in dry beans, tomatoes and fruit juices, has suggested that a trip to Michigan to meet with US processors and growers will help him to complete his assessment of the dry bean situation in North America and review Heinz’s needs and strategic planning decisions for the future. The November 12th trade visit allowed Stobbs to present a proposed trip itinerary and meeting schedule for the Michigan visit, which is provisionally scheduled for the week of December 10, 2012.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 5
The USDBC is currently awaiting confirmation from M. McMichael for the following itinerary:
Michigan Proposed Itinerary
Matthew McMichael
Global Category Lead – Beans & Pulses H.J. Heinz Supply Chain Europe B.V.
Tel.: +31 (0) 30 698 0275 Cell: +31 (0) 622 268 503
Email: [email protected]
Monday, December 10 Arrive MBS (Saginaw) airport Greeted and hosted by the USDBC’s International Programs Committee Chairman Hotel: Bavarian Inn Lodge Frankenmuth, Michigan + 1 888 775 6343 Reservation #s: 11078G & 11078H Tuesday, December 11 and Wednesday, December 12 (Appointments to be spread out over the two-day period) Thursday, December 13 Depart MBS (Saginaw)
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 6
Trip Recommendation Since re-structuring at H.J. Heinz has evolved rapidly, it is recommended that the US Dry Bean Council continue to remain to close touch with Matthew McMichael, in order to provide him with whatever market and supplier information he may need as we move into the new crop year of 2013. H.J. Heinz Contact: Matthew McMichael Global Category Lead – Beans and Pulses H.J. Heinz Supply Chain Europe B.V. Arnhemse Bovenweg 160-178 3708 AH Zeist Netherlands Tel. + 31 (0) 30 698 0275 Fax + 31 (0) 30 697 3701 Cell + 31 (0) 622 268 503 Email: [email protected]
Matthew McMichael, Global Category Lead – Beans and Pulses, H.J. Heinz.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 7
The following information has been taken from official Heinz websites: Heinz at a Glance
• Heinz is a $11.6 billion global company
• Heinz products enjoy #1 or #2 market share in more than 50 countries
• Heinz sells 650 million bottles of its iconic ketchup every year
• Heinz's top 15 power brands account for more than two-thirds of its annual sales
• Heinz employs approximately 32,200 people around the world
• Heinz is committed to safe practices, environmental stewardship and giving back to the community
• Heinz was founded in Sharpsburg (a suburb of Pittsburgh), Pennsylvania, in 1869 by entrepreneur Henry John Heinz.
Heinz Profile The H.J. Heinz Company is one of the world’s leading marketers and producers of nutritious foods in three core categories: Ketchup and Sauces; Meals and Snacks; and Infant/Nutrition. Heinz provides superior quality, taste and nutrition to people eating at home, at restaurants, at the office and “on-the-go.” The company has a world-class portfolio of brands, with 150 brands holding number-one and number-two positions across five continents and in more than 50 countries. Its 15 top brands account for 70% of sales.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 8
Heinz Overview Today’s Heinz is centered on a global portfolio of iconic brands. Under the leadership of Chairman, President and CEO William R. Johnson, Heinz has reshaped its business to focus on the brands in which it has leading market positions and the capabilities to drive consistent, profitable growth. Heinz operates by a philosophy of global coordination and local execution. The company captures the benefits of its multinational scale in areas such as purchasing, information systems and finance, while each business unit is free to make decisions on product development and marketing based on local consumer tastes and business conditions. Innovation is driving new product development at Heinz with the goal of deriving 15 % of sales from products introduced within the previous 36 months. The Heinz Global Innovation and Quality Center, opened in 2005, is a testament to Heinz’s dedication to new product development. Investment in R&D has accelerated at a double-digit rate in each year since the Innovation Center’s opening. Consumers increasingly want great-tasting foods that fit into more active and healthy lifestyles. Heinz is well positioned with a portfolio concentrated in tomato-based products, beans, potatoes, soups and other inherently good-for-you foods. Heinz is a leader in weight management through its Weight Watchers® from Heinz® and Weight Watchers® Smart Ones® branded products. As a global authority in Infant and Children’s Nutrition, Heinz also is at the vanguard of scientific advances that enhance baby and child development. A key pillar of Heinz’s growth strategy is to accelerate growth in emerging markets. From producing the leading soy sauce in Indonesia to the top-selling baby cereal and frozen dumplings in China, Heinz is growing rapidly in emerging market economies, where millions are entering the consumer classes each year. Heinz anticipates deriving a third of its sales growth from emerging markets over the next several years. Heinz foods have been promoted through the years with creativity and flair. From the Heinz Pickle Pin to the famous “57 Varieties” slogan, Heinz has been a pioneer of consumer marketing. Heinz in recent years has increased its marketing investment at a double-digit rate across a broad spectrum of media, from TV, radio and print, to in-store and online to support its robust new product pipeline.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 9
Heinz Europe Heinz Europe accounts for roughly a third of the company’s total sales and has undergone an extensive renovation of its product portfolio in recent years to focus on core brands and categories. The business has redirected the proceeds from divestitures and savings from reduced costs into innovative new products such as Heinz Taste of Home soup in the U.K., Pudliszki jarred home-style meals in Poland and Honig meal kits in the Netherlands, in addition to increased marketing investment. In 2005, the HP and Lea & Perrins brands joined the Heinz family of iconic sauces. In 2006, the Heinz brand was voted as the U.K.’s top food brand in the YouGov survey of Superbrands. The British cannot get enough Heinz Beanz, purchasing 1.5 million cans per day. New twists on this venerable favorite include Snap Pots single-serve packages and HiddenVeg, a children’s range that includes a serving of pureed vegetables “hidden” in the tomato sauce. The U.K. factory at Kitt Green, Europe’s largest food factory, produces more than 1 billion cans per year of beans, soups and pasta meals. Heinz also owns Italy’s leading Infant/Nutrition brand, Plasmon.
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 10
HEINZ EUROPE AFFILIATES U.K. & IRELAND Factories: Kitt Green, England Kendal, England Telford, England Leamington, England Okehampton, England Westwick, England Worcester, England Dundalk, Ireland CONTINENTAL EUROPE Factories: Pont-de-Briques, France Seclin, France Latina, Italy Ozzano Taro (Parma), Italy La Llanada, Spain Pudliszki, Poland Międzychód, Poland Ivanovo, Russia Georgievsk, Russia Otradnoe, Russia Seesen, Germany Utrecht, Netherlands Nijmegen, Netherlands Elst, Netherlands Turnhout, Belgium
The U.K. is the biggest bean-eating nation in the world. More than 1.5 million cans of Heinz Beanz are sold each day
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 11
Offices Hayes Park, Hayes, Middlesex, England Turnhout, Belgium Prague, Czech Republic Grimsby, England Paris, France Düsseldorf, Germany Dublin, Ireland Milan, Italy Warsaw, Poland Moscow, Russia St. Petersburg, Russia Madrid, Spain Helsingborg, Sweden Zeist, Netherlands
US Dry Bean Council – H.J. Heinz Trade Visit Report – November 18, 2012 12
Trip Summary H.J. Heinz UK is one of the most important customers in the world for US navy bean producers. Heinz, and its UK competitor, Princes, account for a very large percentage of US navy beans exported to the UK each year. FAS statistics report that the total value of direct US dry bean exports to the UK in 2011 reached $21.5 million. Direct US exports to the UK in the first 9 months of 2012 have increased by 29% in value and by 32% in volume. H.J. Heinz is in a period of transition. The company is examining the way it procures dry beans, i.e. how it buys and from whom it buys. The appointment of a new Purchasing Director provides an excellent opportunity to enter into a new dialogue with Heinz, with a view to increasing US navy bean exports and broadening the US supplier base. The trip to Michigan by Matthew McMichael will allow the US growers and processors of that region to showcase their processing and cultivation techniques. It is hoped that this first visit, provisionally set for December 2012, will lead to more communication with H.J. Heinz and more opportunities to expand US navy bean exports to the UK canning industry.
Marketbase November 18, 2012
