Heinz to Make Organizational Changes in U.S. Businesses

PITTSBURGH - The H. J. Heinz Company on Tuesday announced plans to make a number of changes in its U.S. business structure as part of the company's transformation of its North America operations following the recently completed transaction with Del Monte.

Specifically, Heinz is in the process of reorganizing its U.S. operations into two business units -- Heinz U.S. "Away from Home" (focused on Heinz's restaurant and on-the-go eating businesses) and Heinz U.S. "Consumer Products" (centered on the company's retail businesses in Ketchup, Condiments & Sauces and Frozen Meals & Snacks). These two business units will have full responsibility for all related business functions, including marketing, sales, finance and the supply chain.

"The reorganizing of our U.S. businesses is the next natural step in the transformation begun by the Heinz/Del Monte transaction," said William R. Johnson, Heinz chairman, president and CEO. "We now have an opportunity to drive as much accountability and decision-making as possible into reorganized business units that are better positioned to meet the needs of our customers and consumers."

Jeff Berger has been named president of the "Away from Home" business unit, while Dave Moran has been appointed president of "Consumer Products." Moran had previously been president of Heinz Sales Company.

Berger and Moran will report to Neil Harrison, executive VP, president and CEO of Heinz North America.

Casey Keller, formerly managing director of the U.S. Ketchup, Condiments & Sauces category, has been appointed to the position of chief growth officer, with responsibility for identifying new global growth initiatives and for prioritizing the company's best short-term and long-term product opportunities.

Heinz also said it is continuing its SKU (Stock Keeping Unit) reduction program first announced in February 2002. The company has a global target of 30 percent SKU reduction by the end of fiscal 2004 and has challenged its employees to work toward a stretch goal of a 40 percent reduction, with particular emphasis on Europe.
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