| FOR
IMMEDIATE RELEASE | CONTACT:
Jennifer May
Heinz North America
412-237-5774
Carl Wistreich
ES3
802-251-7042 |
Heinz
to Outsource Dry Products Warehousing and Distribution To ES3
Agreement
with ES3 Designed to Boost Efficiencies, Improve Customer Service
PITTSBURGH,
October 6, 2003 - Heinz North America announced today it has entered into
a long-term agreement with ES3, LLC, a leading national third-party logistics
and distribution company, to be its lead logistics provider of warehousing and
distribution services for Heinz's ketchup, condiments and sauces businesses.
As
a result of this agreement, three Heinz North America distribution centers - Fremont,
Ohio; Muscatine, Iowa; and Tracy, California - will begin operating as ES3 facilities
in the next six to nine months. At that point, employees at these facilities will
become ES3 employees. A fourth facility in Grand Prairie, Texas will close, affecting
12 employees.
Heinz
also will utilize ES3's York, Pennsylvania facility as its distribution center
for products supplied to customers in the Northeast and Mid-Atlantic regions.
"This
agreement is designed to help us better serve our customers," said Dave Moran,
President of Heinz U.S. Consumer Products. "Having a strong partner such
as ES3 will allow us to implement a state-of-the-art warehousing logistics system
while at the same time driving cost from our distribution networks. It also allows
Heinz to focus on what it does best - making great-tasting, nutritious food products."
Heinz
expects to leverage ES3's experience and expertise to provide greater flexibility
and more predictable, consistent service to its customers.
"The
decision to outsource our distribution operations to ES3 will allow Heinz to make
a quantum leap forward in the services we provide customers, as well as advancing
our enabling technology and improving finished goods inventory levels," said
Jeff Hoban, Vice President of Distribution, Customer Service and Materials Management
at Heinz U.S. Consumer Products. "The move will also allow us to be more
competitive with other manufacturers in dry goods distribution."
"This is a winning
combination," said Ron Wright, President of ES3. "Heinz sells some of
America's most recognized brands, and ES3 offers expertise in supply chain management.
The power of Heinz products, coupled with our ability to manage Heinz's distribution
network, will lead to a successful, customer-focused relationship. Becoming the
lead logistics provider for Heinz is another important step in our efforts to
redesign the consumer packaged goods supply chain and make it more efficient."
"We
look forward to working with Heinz and ES3 technology and distribution partners
in our effort to build the most efficient, cost effective and high quality supply
chain for Heinz. ES3 is committed to developing synergies that positively effect
all participants in the grocery supply chain," said Geoff Davis, Executive
Vice President of ES3.
About
Heinz
Heinz North America is an affiliate of the H.J. Heinz Company,
one of the world's leading processors and marketers of high-quality ketchup, condiments,
sauces, meals, soups, snacks and infant foods through all retail and foodservice
channels. A host of favorite brands, such as Heinz® Ketchup, Ore-Ida®
French fries, Boston Market® and Smart Ones® meals and Plasmon® baby
food are the growth drivers in Heinz's two strategic global segments: Ketchup,
Condiments & Sauces and Meals & Snacks. Heinz's 50 companies have number-one
or number-two brands in 200 countries, showcased by the Heinz® brand, a global
consumer icon with $2.5 billion in annual sales. Fourteen additional brands, each
with more than $100 million in annual sales, generate a further $2.6 billion.
Information on Heinz is available at www.heinz.com/news.
FORWARD
LOOKING STATEMENT
This press release contains forward-looking statements
within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements reflect management's
view of future events and financial performance. These statements are subject
to risks, uncertainties, assumptions and other important factors, many of which
may be beyond Heinz's control and could cause actual results to differ materially
from those expressed or implied in these forward-looking statements. Uncertainties
contained in such statements include, but are not limited to, sales and volume
growth, economic, political, and industry conditions, production, energy and raw
material costs, the ability to maintain favorable customer and supplier relationships,
achieving cost savings programs, the effectiveness of advertising, marketing,
and promotional programs, supply chain efficiency, the impact of e-commerce and
e-procurement, and other factors described in "Cautionary Statement Relevant
to Forward-Looking Information" in the Company's Form10-K for the fiscal
year ended April 30, 2003, and the Company's subsequent filings with the Securities
and Exchange Commission. The forward-looking statements are and will be based
on management's then current views and assumptions regarding future events and
speak only as of their dates. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
About
ES3
ES3 has redesigned the consumer packaged goods supply chain from
the ground up by fundamentally changing the way that products move from manufacturer
to market. ES3 provides the industry with the scale, technology and expertise
necessary to realize savings from a collaborative, just-in-time distribution solution.
ES3's state-of-the-art facility in York delivers multi-manufacturer consolidated
orders to customers throughout the Northeast and Mid-Atlantic regions within 24
hours by utilizing electronic information exchange (EDI, XML or direct machine-to-machine
communications) and automation. Manufacturers and their customers have real-time
visibility to inventory and are able to monitor shipments from end-to-end through
ES3's web-based reporting and proprietary supply chain systems. For more information
on the company, visit ES3's website on the Internet at www.ES3.com.
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