Heinz is still big into beans. That much is clear when you visit its head office in Hayes and are confronted by two startlingly life-sized - as in human-sized - beans flanking a giant tin of the tea-time favourite .
But times are changing for the business that used to boast Bean z Meanz Heinz. With beans just as likely to mean Branston these days, Heinz has been busy defending its territorial heartland against upstart Premier Foods. It has also been diversifying outside its comfort zone of beans, soups and tomato ketchup to launch an impressive roster of new products, most recently a range of spicy sauces and relishes. And the man ringing the changes is Dave Woodward.
In his first interview since taking over as president of the company's UK and Ireland business last June, the engaging former Procter & Gamble sales director is frank about the extent of the changes he has made to the business and what still needs to be done.
He wasn't entirely surprised by the extent of the job in hand. "I knew a few things about Heinz before I joined. I could see there was a fantastic array of brands and they probably weren't getting enough representation. The challenge broke down into four areas: product, people, processes and performance. We needed to invest in all areas. To do that we needed to manage our cost base versus operational costs more effectively. That wasn't happening to the extent it needed to."
New product development was the first item on his agenda. "If I'm being brutally honest, we'd lost a lot of our focus on the importance of the consumer," says Woodward. "We needed more differentiation, customisation and innovation."
Over the past five months, Heinz has enhanced and improved more than 40 products and launched a raft of new products such as Lea & Perrins Worstershire Sauce-flavoured beans and a five-strong range of sauces and relishes that includes a Sweet Tomato Relish, a Peanut Satay Sauce and a Sweet Chilli Sauce. More than 100 new products are slated for launch this financial year, half of which will be brand extensions.
"NPD is something we need to do a lot more of. We've worked very, very hard on getting our innovation pipeline in place for the next financial year," says Woodward.
The aim is to create value in existing categories and drive growth in areas Heinz doesn't currently compete in. He wants to make more of a play of the health and wellbeing credentials of the portfolio - and not just for altruistic reasons or to meet the government's ever more stringent HFSS reduction targets. Four months ago, Heinz added Omega-3 and multigrain to its pasta range and within three months sales were 12% ahead of expectations.
Woodward has equally high hopes for a 30% reduced sugar ketchup that was presented to the trade last month. He also hints that its "good food every day" slogan will change over the next year. "It doesn't have much resonance. It needs to have a broader reach."
Heinz has always been an active proponent of reformulation. Though Woodward stresses that the Ofcom ban on advertising certain products to kids doesn't particularly affect the company, he says he supports The Grocer's Weigh it Up campaign for highlighting the absurdity of the Nutrient Profiling Model. "On the issue of a 100g measure versus portion size we have made our views clear to the FSA and support the rationale of appropriate portion size, which reflects consumer use and contribution to the diet."
As for labelling, although Heinz plans to list full GDA information back of pack , Woodward is not engaging in the front of pack row. Of more concern to him are growth opportunities. One of those is infant feeding. Heinz has already rationalised its range, brought out new products and overhauled its labelling. Woodward has now challenged his team to grow the business's turnover by 25% over the next two years. "I think that's extremely conservative."
He is also scouring for opportunities outside Heinz's heartland, in areas such as fresh soups, juices and meal enhancement. "We'd be open minded about everything. The Heinz brand has a fantastic opportunity to extend itself."
There will be a couple of major launches this year, promises Woodward, adding that a mayonnaise and salsa are currently undergoing testing. Following the acquisition of Amoy, part of the HP Foods stable, in 2005, there are also exciting opportunities in the ethnic arena, he believes.
Much of this new sense of direction is a result of Heinz's decision to undertake much closer analysis of consumer trends. In the past, Heinz has not been as good as it could have at listening to its consumers, concedes Woodward, which is why members of the senior management team are now expected to spend a day with typical consumers as part of a programme that will be rolled out across other parts of the business.
The team has already spotted an opportunity to encourage families to eat together. Next month, Heinz launches its biggest ever cross-category promotion, Dreamz Meanz Heinz, offering shoppers the chance to win £1m worth of family prizes (see brand news).
Of course, all this activity requires systems that work and buy in from the team. Initially, admits Woodward: "We had some serious process challenges that were really around R&D, innovation, forecasting, trade marketing and our ability at point of purchase."
These systems have been overhauled and senior management restructured into two leadership groups: an executive board of Woodward and six vice presidents and a broader group of the top 20 people in the business. There have also been eight high-level internal promotions in the past six months and the business is poised to resurrect its graduate training programme.
Morale has improved significantly after an inevitable period of uncertainty following the departures of Woodward's predecessor Jane Miller and the president and chief executive of Heinz Europe, Joe Jimenez, in quick succession. "People had lost confidence", he admits. "They wanted to do well and couldn't work out why they weren't. "
Though there's still a long way to go, the fourth P, performance, is finally improving. "Over the past four months, we've over delivered against our targets and expectations," says Woodward. "Our vision is clear: sustainable growth across the organisation. It's a trajectory that we hadn't enjoyed over the past five years - but have begun to over the past four months." n
Q&A
What's the high point of your career?
One of the most exciting events in my career has been getting this job. I've never been as challenged in the first six months of a job. It's a very broad workload.
Did anything anger you about the state of the business when you arrived?
Nothing angered me. One of the reasons I was so excited was because I was told there would be lots of opportunities. When I got here, there were more. Heinz is a wonderful brand and company.
Did anything surprise you?
No, but I had been scratching my head about the lack of substantial innovation. There was a big gap. The plan of innovation and execution wasn't in the realm it needed to be in.
What's your typical day like?
I started at 7am this morning and had an interview with a candidate for a job. I also had an executive board meeting from 9am to 11am, which I have twice a week. After lunch, I had two other interviews. I'll probably finish at 6pm or 7pm.
Who has inspired you most during your career? The very recently retired Nick Brookes, formerly trading director at Coca-Cola Enterprises. He epitomises professionalism and integrity. His level of unstinting support and encouragement to young leaders learning in business is quite exceptional.
What do you get up to outside work? Socialising with friends and family. I like rugby - though as a spectator only now - and I also enjoy water-skiing.
What's your favourite Heinz product?
I'm a huge baked beanz fan!
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