Henry John Heinz said a great phrase: “To see is to believe.” For 150 years, this man’s offspring turned into a huge empire called “H.J. Heinz “, which taught people to such a popular food product, like ketchup. Once the company decided to take a chance and bring a new product to market. As a result, the innovation turned out to be a success. And it all began on October 11, 1844. Then, Henry John Heinz was born in Pittsburgh, Pennsylvania. His father, a native of Bavaria, came to the States back in 1840. Here he married the same German immigrant. Ten years after the birth of his son, Henry’s father moved to the neighboring town of Sharpsburg, where he moved his small brick factory.
Henry grew up in a big house, next to which was a garden and a large plot of land. The boy spent all his free time in the garden. There he grew flowers, greens, fruits and vegetables and even tried to breed new varieties. And from the age of 12 Henry tries himself in business – he begins to actively sell the products he has grown. Trade in food began to interest the young Heinz more and more. At first, he simply offered neighbors to buy surplus fruits and vegetables, and then became a significant supplier for several stores. To improve the supply chain, Henry even hired several assistants who helped him grow and then distribute the harvest to the shops. In those years, Henry formed for himself the principles of doing business – honesty, ambition and quality goods.
In 1869, the Heinz & Noble company was registered, which Henry Heinz founded with his partner, friend and neighbor Clarence Noblem. The first product, produced by a young company, was grated horseradish in a transparent bottle. In those days, all manufacturers preferred to produce such a product in dark flags. You could only guess what is inside. Young businessmen chose a different path, deciding to apply directly to the psychology of the buyer. They packed horseradish into transparent and elegant jars, whose contents were clearly visible. This marketing move the buyers took positively, horseradish became the first hit of the firm’s sales.
I must say that luck accompanied Heinz. He very opportunely opened his company, which allowed it to develop rapidly. Those years were marked by several technological revolutions, which changed the agronomy, processing, packaging and transportation of food products. It was then that there were refrigerators, pasteurization. As a result, the company’s revenues grew steadily. In the first year of its work, the company had a very solid turnover of several thousand dollars.
The next step of the young entrepreneur has become very significant, and this is what determined the future fate of the famous brand. Henry Heinz realized that the success of food depends mainly on how and what they are packaged. And labeling of goods with their packaging is a real science. Henry Heinz made the first standards that describe and denote these rules.
The company reasonably decided that one should not stop at producing one product, even a successful one – horseradish. We needed a really new and massive hit. They became ketchup. At that time, American cuisine had in its assortment quite fresh and few dishes. It was based on bread, potatoes, vegetables and meat – smoked or jerky. In winter, pickled cucumbers were added to all this. Tomatoes are generally considered a kind of Mexican exotic. A ketchup was born thanks to distant China. There was a similar seasoning called kei-chiap. Henry decided on the basis of her to create a new product, after changing the taste qualities, ketchup appeared.
Mass production and aggressive advertising made ketchup an integral part of American cuisine. After that, the company’s products have produced new products: mustard, chili sauce, pepper sauce, apple gravies, apple cider vinegar, olives, salted onions, pickles and much more.The company “Heinz” in fact captured a sector such as the production of frozen breakfasts and canned tuna. The most important thing that lay at the heart of the company’s success is a well-designed scheme. First, the most successful product was selected from several variants, then its taste was adjusted, beautiful and unusual packaging was selected, an active advertising campaign was conducted, and mass production was established.
The Americans were so pleased with the new products that Heinz’s company received just the cosmic profits. Henry managed to become the largest food producer in the country. The company’s turnover has already exceeded $ 1.5 million. In addition, Henry focused on the quality of his product.
The first production is located in a two-story farmhouse in the north of Sharpsburg. But in 5 years it was necessary to expand. Heinz and Noble purchased hundreds of acres of gardens, 24 horses, several vans and a whole factory in St. Louis. That move came in 1875, when the country experienced a banking crisis. The panic was engulfed by industry. The company Heinz and Noble also went bankrupt. Then Henry registered a new company, “H.J. Heinz, co-founder was his brother and cousin besides him, and Clarence Noble withdrew from business.
Henry draws conclusions from failures and his business is once again going up the hill, the products are spreading throughout the country. The businessman understands that just an established production will be small, starting to invest more and more money in bright and even aggressive advertising. He was one of the first to realize that in addition to production, one should also develop the brand. Henry Heinz wanted his company to become a real symbol of quality, which was what the efforts of all employees were aimed at. In addition to the fact that the owner was efficient and enterprising, he was also an excellent marketer. He was the first to think about the release of environmentally friendly products. In 1900, Heinz began to use neon advertising first. A huge shield with the company logo advertised the main goods: ketchup, marinades and sauces.
And in 1886 appeared the first subsidiary outside the country – in England. To this end, Henry and his family visited the United Kingdom with a set of their best products. The English took her with delight. In 1888, Henry bought the company from his relatives, renaming it “H.J. Heinz”, and in 10 years an office in London was opened. In 1905, a factory was built in the British city of Peckham. By 1919, Heinz managed to buy a couple of plantations in England. His company became the official supplier for the royal court. Many at that time generally considered it to be truly British. At that time, the firm owned 25 factories, which employs more than 6 thousand employees.
May 14, 1919 the founder of the company died, his son Howard continued his work. He was a young and energetic man, who paid special attention to laboratory research. He further strengthened control over the quality of products. The company continued its rampant growth and penetrated to the remotest corners of the planet.
In 1941, Howard replaced Henry John Heinz-the second. He became the first head who bought the finished product in the Netherlands. Prior to this, Heinz preferred to build a technological cycle from the very beginning. Soon new production was bought in a similar way in Mexico, Italy, Portugal and the US itself. After joining the post of the head of Bart Goukin in 1966, the pace of acquisitions increased even more. In 1972, the company’s turnover exceeded one billion dollars. The head of “Heinz” decided to restructure the company, new top managers came to it.
In 1979, the company was headed by 35-year-old Anthony O’Reilly. His policy included active expansion into new markets. Heinz products appeared in South Africa, New Zealand, Czechoslovakia, South Korea, India, China, Egypt, Zimbabwe … And in the early 1990s, Russia entered this list. In 1996, the new head of the company was William R. Johnson.He continued the set course of active offensive on new wounds, purchasing production even in exotic Singapore, the Netherlands, Indonesia and the Philippines. But the priorities of the company have changed, it began to produce new products – semi-finished products and pet food.
In 1998, “H.J. Heinz “held an unusual action, which was to return the brand attractiveness and dynamics. Conventional goods were planned to be turned into a symbol of pleasure and entertainment. Today, the top managers of the company do not tire of repeating that the only way to develop their business is innovation and quality. Due to this, the products are environmentally friendly and safe.
Until 1966, the company was managed by representatives of the Heinz family, today they own the majority of shares. Today the company “H.J. Heinz is a multinational corporation, its branches are located on all inhabited continents. The main business profile is the growing, manufacturing and further sale of exclusive food products. The Heinz brand has combined thousands of products – from sauces with mayonnaise to fish. But the consumer associates the company’s name with its main product – ketchup. It is no coincidence that it accounts for 30% of all sales of the concern. The very same brand is the number one for recognizability among food companies. In 2006, the turnover of H.J. Heinz “amounted to 8.7 billion dollars. It produces more than 5,700 different products. The company owns 200 factories in 50 countries. About 50 thousand employees work at its enterprises.