Heinz: Quarterly Report

Sales for the three months ended January 30, 2008 increased $316 million, or 13.8%, to $2.61 billion, with growth in all five business segments. Volume increased 5.2%, driven by a 9.8% volume increase in Asia/Pacific, combined with solid growth in Europe, North American Consumer Products and U.S. Foodservice segments. Notably, the Company’s emerging markets (Russia, Indonesia, China, India, Poland, Latin America, Czech Republic, Egypt, South Africa and Middle East) achieved an 8% volume increase and accounted for over 20% of Heinz’s total sales growth in the third quarter of Fiscal 2008. Net pricing increased sales by 3.4%, mainly in the North American Consumer Products and European segments, as well as our businesses in Latin America and Indonesia. Foreign exchange translation rates increased sales by 5.3%.   Sales of the Company’s top 15 brands grew 16.8% from the year-ago quarter, as sales of ketchup rose 7.8% and sales of beans and soups increased 15.8%. The growth in the top brands was led by Heinz ® , Ore-Ida ® , Smart Ones ® , Classico ® , Weight Watchers ® , and ABC ® .