Heinz to Make Organizational Changes in U.S. Businesses

January 14 2003 - PITTSBURGH--(BUSINESS WIRE) - The H. J. Heinz Company (NYSE:HNZ) today 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 into a more effective, efficient and customer-focused operation following the recently completed transaction with Del Monte.

"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 Chief Executive Officer. "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."

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.

Jeff Berger has been appointed to lead Heinz "Away from Home" as President of the Business Unit. Dave Moran has been appointed President of Heinz "Consumer Products." Mr. Moran had previously been President of Heinz Sales Company.

Messrs. Berger and Moran will report to Neil Harrison, Executive Vice President and President and CEO of Heinz North America. Jim Krushelniski will continue to be President of Heinz Canada, reporting to Mr. Harrison. The structural changes announced today will not affect Heinz Canada.

Casey Keller 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. Mr. Keller will assume his new position after having achieved significant growth in sales and market share for Heinz(R) Ketchup as Managing Director of the U.S. Ketchup, Condiments & Sauces category. He will report to a new global Operating Council, comprising Mr. Johnson and Heinz's four Regional Presidents around the world.

"This reorganization has been designed to help move Heinz toward its stated goal of becoming a more focused company," Mr. Johnson concluded. "We will continue to work on improving the effectiveness and efficiency of our U.S. operations at every level as we strive to deliver consistent performance and improved shareholder value."

As part of its ongoing efforts to improve efficiency, the company is continuing its SKU (Stock Keeping Unit) reduction program first announced in February 2002. The company has a global target of 30% SKU reduction by the end of Fiscal 2004 and has challenged its employees to work towards a stretch goal of a 40% reduction, with particular emphasis on Europe.

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