The history of Heinz tomato Empire. Explorer vc.ru studied the history of the brand Heinz, founded in 1869, Henry Heinz — the native of a German family, who began business in America with sales of horseradish and later earned fame as “the king of ketchup”.
The brands founder Henry Heinz Heinz was the son of German immigrants who arrived in the U.S. in the early 19th century. Parents always were respectful to their roots. Said the house in German language and birth were laid down in the children pedantry and love of work.
Henry was only six years old when he began to care for a family garden. And already at the age of nine years the boy began to sell in Pittsburgh fuck that mom. The Heinz family firmly believed that if children want to make a career, then they should work since childhood and to start from the bottom. Already in the decade Henry has acquired its own land on which he had spent all his days raising vegetables.
As a teenager, the enterprising Heinz established a relationship with the owners of local shops to supply them with their crops. In addition, he continued to sell horseradish, homemade recipes.
At that time, local Newspapers published numerous revelations of unscrupulous manufacturers who have added to the hell of cheap turnips. The buyers did not notice the deception, as the container was always made of darkened glass. The trick of the competitors, Henry Heinz saw his chance and offered the horseradish in transparent packaging. So the buyer can thoroughly examine the item, and Heinz received the fame of the honest manufacturer.
At the time of high school graduation garden Henry has grown to such proportions that he had to hire workers. In 1861, when Heinz was only 17 years old, he earned $2400 (today about $43 thousand).
Raising funds, he received the opportunity to study in one of the best Finance colleges in USA. There he mastered the skills of bookkeeping, which later helped him in his own business for a strict accounting of the revenues and expenditures of the company. After graduating from College, Henry chose not to return to the garden, and went to help his father in the brick factory.
Thanks to his skillful advice business was bringing significant income. A few years later twenty years Heinz has already single-handedly ran the plant. In his spare time, the young entrepreneur continued to experiment with recipes.
At that time, America has discovered a system for preserving foods. Then Heinz was born a business idea. In 1869, Heinz, along with a friend founded the company Heinz&Noble.
It has been supplying to restaurants and cafes grated horseradish, pickles, sauerkraut and other preserved food. However, the system of canning was not perfect — consumers still happened poisoning. Therefore, businessmen do not dare to put on the label the name of your company.
Soon, canned products became popular and in stores. Most worked in manufacturing for 12 hours a day, so upon returning home, hardly anyone could afford to spend a lot of time in the kitchen. Products that do not require cooking, fell more than ever.
In the first year of its existence, the company went into profit. However, in a highly competitive environment, entrepreneurs were required to make high quality products more affordable, and thus to expand production. They bought a factory for the production of vinegar, bought wagons and horses for the delivery of vegetables and fruits. In addition, businessmen hired the German Housewives who were engaged in the canning of vegetables.
They also signed agreements with farmers on purchasing crop in the spring at a fixed price and no longer depend on the weather, which in the case of deterioration would greatly increase the cost of goods fall. The measures taken have helped the company become a major player in the market of canned products. Oshelomitelnyy heard the news of its bankruptcy.
In 1875 in the United States the financial crisis that prevented the entrepreneurs time to take out a Bank loan to cover contracts with farmers. That year proved to be extremely fruitful, and the company simply did not have enough working capital to pay. The farmers went to court and the company Heinz&Noble was declared bankrupt.
The businessmen had to sell all property, to somehow cover the debt. After the incident companion Clarence noble forever tied to the idea of having my own business. Henry Heinz took several months to get out of a prolonged depression.
A difficult time came to the aid of the family that loaned all your money to Heinz tried to get back in business. Heinz has registered a new company to their relatives, the owner of a majority of the stock became his mother. The businessman had to begin not with zero, but with minus — from the hand of all debts.
Henry Heinz was important to restore his good name, so he promised to all who owe back every penny. Pay off all the debts, it took him five years. Only after that he became the legal owner of the company.
Joining the new business, the entrepreneur decided not to repeat past mistakes, chief of which he considered the lack of own production of vegetables and fruits. The first step of Heinz in new business was the purchase of land for seedling. So he could control the whole process and no one to depend on.
For many years Henry Heinz continued to work on the recipe mustard. In 1871, in the US ketchup, which, despite the legend, did not come up with Heinz. However, the recipe that brought his mother from Central Europe, became the most popular brand of tomato ketchup for all time of its existence. The branded Heinz ketchup first appeared in 1876.
The manufacturer claimed that the sauce has no artificial ingredients — only tomatoes and vinegar. In addition, anyone can visit the farm of Heinz and see for yourself the quality of tomatoes grown. The entrepreneur continued to expand the range of preserves, sauces and marinades.
For the ketchup followed by the sauces of red and green pepper, Apple cider, olives, pickled onions, baked beans and pickles. Over time, Heinz felt “crowded” in the borders of the United States. The first country which he visited with a business proposal, became the UK.
Department store Fortnum & Mason had a reputation as the best trading platform in the world and has supplied products to the British Royal family. A Heinz brought samples of seven products, the Manager approves them all. The UK was the first foreign market for the brand.
Sales were so good that in ten years the owner has opened an office in London, built a factory there and bought a plot of land for growing vegetables and fruits. Special popular product, represented Heinz in 1901 — ready beans along with tomato ketchup became the most famous product of the brand. The conservative British even included beans in the traditional Breakfast with fried bacon.
Due to the great popularity of Heinz in the UK, many believe that the brand has English origin. In 1998, the inhabitants of the United Kingdom in deference to the brand put Heinz Beans in the top 12 brands that best reflect life in the last decade of the 20th century. Heinz has always been obsessed with the exclusivity of their products.
He has developed several systems for quality control, implement new technologies and constantly experimented with packing. For the promotion of ketchup he chose a glass bottle and then carefully worked over her form. As before, the main advantage over the competition served as a clear glass containers.
Customers had to see what Im buying. Besides red sauce attracted consumers. However, there is one “but”. Over time the top layer of ketchup darkens in clear bottle that immediately caught my eye. Then Heinz came up with to glue the label not only for the main part, but also around the neck.
On improving the label the company worked until 1948, when they released a product with the perfect, in the opinion of the managers, design. In this form it exists today. In 1889 Heinz first introduced the octagonal glass bottle, and a year later received a patent for the invention.
The iconic bottle is still used and is considered as an example of exceptional packaging design. Almost a century later, the company introduced a new soft plastic bottle, sauce from which you can extract with slight pressure. In 20 years the design was refined through a new form of an inverted bottle.
Before such a package was only used in the cosmetic line. Shampoos, creams, toothpastes. On account of Heinz the development of the first individual disposable packets of ketchup, which began to use the majority of fast food restaurants.
With the increase in sales and increased the production. In the summer of 1892 on a nearby factory in Pittsburgh, there was a mass strike by workers who were protesting against layoffs. During the struggle with the guards killed ten employees. This case is so influenced Heinz that he personally engaged in the improvement of labor conditions of own employees.
The workers in his factories, there have been several breaks during the day and after a work shift they can take a bath. All the women regularly got clean aprons and hats, and those who cleaned the cucumbers had the right once a week to do free manicure.
Every employee of the plant received free health insurance. The entrepreneur tried to create a favorable atmosphere. Opened by the choir and several interest groups. Soon to work in the factories of Heinz has become prestigious.
The purity of the businessman was a very special relationship. Himself Heinz argued that it did not consider other manufacturers as competitors in quality. His chief opponents were ordinary Housewives. Strict hygiene covers not only manufacturing, but also on fields, where they grow vegetables and fruits.
Heinz was proud that never used chemical preservatives in their products. To promote its product, the entrepreneur has developed a tiny product samples (the types of probes), which you can try before you buy. Specifically for promotions he invented the disposable cardboard spoon for sampling.
Traveling around the country from city to city, Heinz arranged a promotion right into the cars. Once one of the trains the entrepreneur noticed advertising that says that a certain company has developed more than twenty of the same style of shoes. He is so liked and remembered the announcement that he decided to come up with something similar for your brand.
At that time Heinz produced over sixty products, but Heinz decided to stay on the 57 — according to him, it sounded good. In fact, the number means nothing, however, is still printed on many products.
In 1893, Heinz took part in the Columbian exhibition in Chicago. Provided stand on the third floor. Due to bad location, not every visitor could find his counter. Then the entrepreneur has printed cards on a gold foil (types combined), indicating that they can be exchanged for a free prize on the third floor.
This move was ground-breaking for its time. When visitors came to the stand of Heinz, the first thing they saw was neatly arranged in a pyramid cans and bottles Heinz. In addition, as promised, Heinz, all attendants were waiting for a gift souvenir — icon pickled cucumber.
Those wishing to receive the Souvenirs were so many that organizers had to call the police to control the crowd. The advertising campaign was successful. About the brand even wrote in The New York Times. Later pickled cucumber on a pin called the most famous souvenir in the history of merchandising.
In the early 20th century in the United States appeared neon signs. The Heinz brand has become one of the first who began to use it on a large scale. In 1900 in Manhattan, the company placed on the wall sign length is six stories high, which illuminates the 1200 bulbs. Despite the considerable expenses, is fully paid for itself, becoming the only bright spot in new York city.
By the early 20th century, the company held the largest niche in American grocery business. She was the first for the production of ketchup, pickles, mustard and vinegar and a fourth for the sale of olives. The brand was seven plants and twenty-one hydrochloric station.
In 1905 the company became a joint stock. Of its securities was estimated at $4 million, all the shares were in family hands Heinz. At that time, the brand has produced more than 200 products. After 15 years, the company had over 6,500 employees, 25 branches, 85 salt stations, 53 stations of the processing tomatoes and 111 for making pickles. The turnover of the brand amounted to $20 million a year.
The business continued to flourish abroad. In England and other European countries. The period of the great depression the company survived through the production of baby food and instant soups, which were very popular at that time.
The companys business went well and during the Second world war. The heirs of Heinz managed to get permission for the supply of products Heinz us army. During the war the company built new plants in Mexico, Portugal, Italy and other countries.
After the death of Henry Heinz in the head of the company stood up his son and then grandson. In 1966, for the first time to the leadership of the brand was made a salaried employee, not a family member. After a few years, the volume of sales when it was $1 billion, the number of products exceeded 400 items, indicating proper guidance.
By the end of the 20th century, the brand Heinz took the fourth position in the food industry after Coke, McDonalds and Nescafe. According to a survey published by YouGov BrandIndex in 2011, consumers have awarded the company the highest place among food brands they trust. Today six out of ten made in the USA bottles of tomato ketchup are produced under the Heinz brand.
2013 was a landmark for the company. The financiers Warren Buffett and Jorge Paulo Lemann acquired the brand for $28 billion, was the largest deal in the food industry. After the purchase of Heinz ceased to be a public company. This was followed by mass layoffs. The measures brought results — the annual profit grew from $18 million to $657 million.
In 2015, a merger of the corporations, Kraft Foods and Heinz, for which the owners have paid new associates $10 billion. Kraft Foods owns 49% stake in the merged giant.