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Emerging Markets %
of Company Sales
Marketing Investment — $MM
Fiscal 2010 Results
15%
20% Increase of
More Than 60%
$438
Reported Sales
$10.5 billion
Organic Sales Growth (1) +2.1%
$269
Op. Free Cash Flow (2)
$1,081 million
After-Tax ROIC (3) 18.7%
FY10
FY13E
FY06
Continuing Operations
FY10
(1) Volume plus price
(2) Cash from operations less capital expenditures net of
proceeds from disposals of PP&E
(3) Excludes 90 basis point impact of losses from discontinued operations
Emerging Markets have become Heinz’s most powerful growth
engine and are on track to deliver at least 20% of the Company’s
sales by 2013, more than double their contribution of five years ago.
Right Strategy
Heinz achieved success in a challenging global
environment through superb execution of our longestablished
strategy, which is built around four
key pillars:
• Grow the Core Portfolio
• Accelerate Growth in Emerging Markets
• Strengthen and Leverage Global Scale
• Make Talent an Advantage.
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 secondlargest
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.
Innovation
Innovation is a Heinz hallmark and a key to unlocking
growth in our core brands. A great example is Dip &
Squeeze Ketchup, the new dual-function foodservice
package that we announced in February 2010. Dip &
Squeeze gives consumers two ways to enjoy Heinz
Ketchup—you can peel back the lid for easy dipping
or tear off the tip to squeeze it out. This revolutionary
package holds three times as much ketchup as a
traditional packet. It will be available to U.S. consumers
later this year.
2 2010 H.J. Heinz Company Annual Report