H.J. Heinz Company (ticker: HNZ, exchange: New York Stock Exchange (.N))
News Release -
25-Oct-2006
Heinz Chairman William R. Johnson Receives Prestigious Marco Polo Award in Recognition of Company's Partnership with China to Improve Family Nutrition
Business Editors
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PITTSBURGH--(BUSINESS WIRE)--Oct. 25, 2006--H. J. Heinz Company
(NYSE:HNZ) Chairman, President and CEO William R. Johnson today
received the Marco Polo Award, considered to be the highest honor
bestowed by the Chinese government on a foreign business leader, and
announced that the H. J. Heinz Company Foundation plans to contribute
more than $1 million to introduce its global non-profit micronutrient
supplement program to improve nutrition and combat anemia among
infants and children in isolated Chinese communities.
Mr. Johnson received the Marco Polo Award from Deputy Director
General of the State Administration of Foreign Experts Affairs Zhang
Jianguo at a banquet in Beijing attended by Chinese government leaders
and representatives of the international business community. The award
was presented in conjunction with the China Association for
International Exchange of Personnel and the U.S.-China Foundation for
International Exchanges in recognition of Heinz's contribution to the
development of the Chinese food manufacturing industry during Mr.
Johnson's tenure as CEO, as well as his commitment to providing
meaningful exchange of technical knowledge and humanitarian
assistance.
"The Marco Polo Award was created to recognize people, who like
Marco Polo - a friendship ambassador - made significant contributions
to the friendly exchange of knowledge and expertise between China and
the West. We thank these people, institutions and enterprises who are
dedicated to Sino-U.S. relations and cooperation. As the global head
of Heinz, Mr. Johnson's outstanding leadership has led the Company
towards impressive success. This award also recognizes Mr. Johnson's
important role in promoting the exchange of talent between the two
countries, as well as Chinese talent development," said Zhang Jianguo,
Deputy Director General of the State Administration of Foreign Experts
Affairs.
Mr. Johnson joins a distinguished list of former Marco Polo
awardees, including President George H. W. Bush, and the CEOs of
Johnson & Johnson, Ford Motor Company, Kodak, and AT&T among others.
Mr. Johnson said, "I am humbled to receive this honor on behalf of
Heinz reflecting our steadfast commitment to improving nutrition in
China. The late Jack Heinz, grandson of our founder, personally opened
the first Heinz infant food factory in Guangzhou in 1986, the year
before his death. The mission of the H. J. Heinz Company has been to
provide Pure Foods for over a century and this is our mission in
China."
Mr. Johnson continued: "Strategically, China is very important to
Heinz, both as a market for superior nutritional foods and as an
export base to the rest of the world, particularly for tomato
products. Heinz has been dedicated for over 137 years to providing
pure, nutritious foods around the world and I am delighted to deepen
our commitment to China through a number of initiatives including the
extension of our global micronutrient supplement program, which will
ensure that hundreds of thousands of children in remote villages
receive essential nutrients to grow up healthy and strong."
Heinz commits more than $1 million for introduction of its global
non-profit micronutrient supplement program in rural Chinese
communities
One of the H. J. Heinz Company Foundation's program areas is to
promote improvements in and better understanding of good nutrition,
contributing to the health and well-being of people and communities.
To this end, the Foundation has been instrumental in the distribution
of a flavorless powder that contains iron and other vital
micronutrients that are often missing from the diets of people living
in remote areas of developing nations. This powder is packaged in
individual sachets and can be sprinkled atop staple foods like rice.
It has been proven to be very effective at preventing anemia and
malnutrition.
Heinz will contribute more than $1 million to a pilot project in
China, targeting counties in western provinces over the next three
years in cooperation with the Ministry of Health.
The Heinz Institute of Nutritional Sciences (HINS) Opens its 17th
Symposium
Earlier today, Heinz opened the 17th annual Heinz Institute of
Nutritional Sciences (HINS) International Symposium on Maternal and
Infant Nutrition. This event, established by Heinz in China,
underscores Heinz's global expertise in infant nutrition and
longstanding commitment to the health and well-being of the future
generations of China. Heinz is the number one infant cereal in China
and the business is growing rapidly because of its commitment to
innovation and its broad offering of nutritional products. Heinz was
also the first food company to manufacture and market instant
nutritionally fortified baby foods in China.
The Heinz Institute of Nutritional Sciences was established in
1986 with the aim of improving maternal and infant nutrition through
promotion of nutritional knowledge and research. The activities of the
Institute are governed by a scientific advisory board made up of
renowned medical and nutrition experts in different parts of China.
Heinz agricultural assistance program results in 50 percent
increase in field yields
Heinz's commitment to China extends from the field to the factory
to the table. Heinz is the world's largest user of processed tomato
products and has developed the world's largest database of all natural
tomato hybrids. Heinz started the partnership with the Xinjiang tomato
industry in 1999. The Company is now sharing its unparalleled seed
technology and advanced cultivation methods with growers and
processors in the Xinjiang region. Since 2005, Heinz, with strong
cooperation from the China National Cereal Oils and Foodstuffs Company
(COFCO), has committed a team of agricultural experts to provide
on-site technical guidance throughout the growing season to improve
the tomato crop in Xinjiang.
The demonstration program is open to any farmer in the region to
learn modern processes for cultivation, weed control, irrigation,
transplant production and crop scheduling. The result of the
demonstration field has been an increase in field yields of almost 50
percent and implementation of sustainable soil maintenance practices.
In addition, Heinz has worked closely with the Chinese Ministry of
Agriculture and provincial and local governments to promote the
expansion of this program.
Heinz dedicates 10-year fellowship for study of nutrition and
health policy
Mr. Johnson also announced today that the H. J. Heinz Company
Foundation has established a 10-year annual fellowship program whereby
a qualified Chinese fellow will study health and nutrition policy at
the University of Pittsburgh Graduate School of Public and Industrial
Administration beginning in 2007.
"We are pleased with the development of our business partnerships
in China," Mr. Johnson said. "By providing the highest-quality,
all-natural infant nutrition, introducing our micronutrient program,
expanding our transfer of agricultural knowledge and helping the next
generation of Chinese food industry policy makers, we are working to
enhance our reputation as a trustworthy and reliable corporate
citizen."
Heinz operates seven plants in China through its partnerships - in
Qingdao, Shanghai, Chengdu, Tianjian and three in Guangzhou. It is
building a modern new facility in Chengdu to replace the existing
plant for the production of frozen food like dumplings, rice balls and
other dim sum products. Heinz has sales of approximately $150 million
in China, growing at double digit rates annually. The company employs
4,700 people and has plans to further expand employment as growth
increases.
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
generally identified by the words "will," "expects," "anticipates,"
"believes," "estimates" or similar expressions and include our
expectations as to future revenue growth, earnings, capital
expenditures and other spending, as well as anticipated reductions in
spending. These forward-looking statements reflect management's view
of future events and financial performance. These statements are
subject to risks, uncertainties, assumptions and other important
factors, many of which may be beyond Heinz's control, and could cause
actual results to differ materially from those expressed or implied in
these forward-looking statements. Factors that could cause actual
results to differ from such statements include, but are not limited
to:
-- sales, earnings, and volume growth,
-- general economic, political, and industry conditions,
-- competitive conditions, which affect, among other things,
customer preferences and the pricing of products, production,
energy and raw material costs,
-- the ability to identify and anticipate and respond through
innovation to consumer trends,
-- the need for product recalls,
-- the ability to maintain favorable supplier relationships,
-- currency valuations and interest rate fluctuations,
-- change in credit ratings,
-- the ability to identify and complete and the timing, pricing
and success of acquisitions, joint ventures, divestitures and
other strategic initiatives,
-- approval of acquisitions and divestitures by competition
authorities, and satisfaction of other legal requirements,
-- the ability to successfully complete cost reduction programs,
-- the voting results on shareholder proposals, including the
recent nomination of nominees for election as directors of the
Company,
-- the ability to limit disruptions to the business resulting
from the emphasis on three core categories and potential
divestitures,
-- the ability to effectively integrate acquired businesses, new
product and packaging innovations,
-- product mix,
-- the effectiveness of advertising, marketing, and promotional
programs,
-- the ability to maintain sales growth while reducing spending
on any advertising, marketing and promotional programs,
-- supply chain efficiency,
-- cash flow initiatives,
-- risks inherent in litigation, including tax litigation, and
international operations, particularly the performance of
business in hyperinflationary environments,
-- changes in estimates in critical accounting judgments and
other laws and regulations, including tax laws,
-- the success of tax planning strategies,
-- the possibility of increased pension expense and contributions
and other people-related costs,
-- the possibility of an impairment in Heinz's investments, and
-- other factors described in "Risk Factors" and "Cautionary
Statement Relevant to Forward-Looking Information" in the
Company's Form 10-K for the fiscal year ended May 3, 2006.
The forward-looking statements are and will be based on
management's then current views and assumptions regarding future
events and speak only as of their dates. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by the securities laws.
ABOUT HEINZ: H. J. Heinz Company, offering "Good Food Every Day"
is one of the world's leading marketers and producers of branded foods
in ketchup, condiments, sauces, meals, soups, snacks and infant foods.
Heinz satisfies hungry consumers in every outlet, from supermarkets,
to restaurants to convenience stores and kiosks. Heinz is a global
family of leading brands, including Heinz(R) Ketchup, Sauces, Soups,
Beans, Pasta and Infant Foods (representing nearly one-third of total
sales or close to $3 billion), Ore-Ida(R) frozen potato products,
Boston Market(R)(a) frozen meals, T.G.I. Friday's(R)(a) frozen snacks,
Weight Watchers(R)(a) Smart Ones(R) meals and Plasmon(R) baby food.
Heinz's 50 companies have number-one or number-two brands in 200
countries, showcased by Heinz(R) Ketchup, the world's favorite
ketchup. Information on Heinz is available at www.heinz.com/news.
(a) Weight Watchers on foods and beverages is the registered
trademark of WW Foods, LLC and is used under license; Boston Market is
a registered trademark of McDonald's Corporation and is used under
license; T.G.I. Friday's is a trademark of T.G.I. Friday's of
Minnesota, Inc. and is used under license.
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CONTACT: H. J. Heinz Company
Media:
Ted Smyth, 412-456-5780
Michael Mullen, 412-456-5751
Michael.mullen@us.hjheinz.com
or
Investors:
Jack Runkel, 412-456-6034
SOURCE: H. J. Heinz Company
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