H.J. Heinz Company (ticker: HNZ, exchange: New York Stock Exchange (.N))
News Release -
Heinz to Participate in New, Global E-Commerce Enterprise
PITTSBURGH, June 14, 2000 /PRNewswire/ -- H. J. Heinz Company (NYSE: HNZ)
today announced that it is joining 48 other consumer packaged goods companies
as an equity participant in Transora, a revolutionary business-to-business
e-commerce enterprise launched today.
Transora is the first and largest e-market initiative by food, beverage
and consumer product goods (CPG) manufacturers, representing more than
$500 billion in annual sales or close to 40 percent of the $1.3 trillion
global consumer product industry. It is a global, independent "dot-com"
enterprise funded and owned by participating CPG companies and certain key
partners. As a part owner of Transora, Heinz will participate in a new open,
standards-based e-market for the CPG industry, similar to the e-market formed
by leading automobile manufacturers.
"Heinz is proud to participate in the formation of this transformative
electronic marketplace," said William R. Johnson, president and chief
executive officer of the H. J. Heinz Company. "Transora will deliver
breakthrough value to our company and other participants by establishing
consistent industry-wide e-commerce solutions and standards for a broad range
of transactions among customers and suppliers."
Mr. Johnson explained that Transora will construct a global
business-to-business e-marketplace that will generate significant efficiencies
in purchasing as well as reduced cost for implementation and ongoing operation
of e-commerce activities. "Instead of having to develop different standards
and platforms for every supplier, Heinz will be able to conduct e-commerce
activities through a single exchange," he noted.
Generating Significant Benefits
Heinz was one of the first CPG companies to sign up for the development of
an industry-wide e-market, which was first announced in March. Short-term
benefits for the company include opportunities in purchasing, as Transora
brings multiple buyers and sellers into a virtual marketplace to support
catalog purchasing, bidding and price quotes, on-line sourcing and auctions
for raw materials, packaging supplies and other goods and services critical to
Long-term, Heinz expects to be able to streamline its entire supply chain
through participation in Transora. The exchange could eventually encompass
supply-chain processes such as flow management, order fulfillment, payment and
Heinz's CEO stated: "The Internet is transforming the way we do business,
and Transora enables Heinz and the other participants to leverage the power of
new technology to offer our customers improved service, greater efficiency and
reduced cost. It is a perfect example of the so-called `old economy' using
the `new economy' to generate greater value for customers, consumers and
Full details on the Transora announcement are available in a release
issued by Transora at noon today.
Heinz Announces Appointments in Information Technology and E-Commerce
As part of its strategic development of information technology and
e-commerce capabilities, Heinz also announced two new management appointments.
Heinz North America has named Marc Brown Vice President - Information
Technology, with responsibility for all information systems within the Heinz
Frozen Food and Heinz North America Dry companies. Mr. Brown joined Heinz
U.S.A. in 1996 as General Manager - Information Systems, and moved to Heinz
Frozen Food in the same capacity in 1999.
At Heinz World Headquarters, the H.J. Heinz Company promoted Mike Garfield
to the position of General Manager - E-Commerce, with responsibility for
defining and creating the operational and strategic framework for all Heinz
e-commerce initiatives. He will focus on developing technological
infrastructure and global standards to enable the success of Heinz's
e-commerce efforts and be a catalyst for new capabilities and platforms for
all aspects of the company's business.
Mr. Garfield joined Heinz six years ago in Europe, managing development
projects across the region, followed by a role in the company's restructuring
project, consolidating the European Information Services groups in support of
the category business model. Since July 1999, he has been managing the Heinz
North America Information Services function, including the Year 2000 Project
and, most recently, the merger of Star-Kist Foods, Inc., and Heinz Pet
Products into the Pittsburgh systems.
SOURCE H. J. Heinz Company
CONTACT: MEDIA: Ted Smyth, SVP-Corp. & Govt. Affairs, 412-456-5780;
Debbie Foster, Director-Corp. Comm., 412-456-5778; or Jack Kennedy,
GM-Strategic Comm., 412-456-5923; INVESTORS: Jack Runkel, VP-Investor
Relations, 412-456-6034, all of Heinz/