Johnson Says Brand Power of Heinz
Comes from Innovation and Talent

By Nariman Ahmed

William R. Johnson, MBA ’74, CEO of H.J. Heinz Company and McCombs Hall of Fame member, spoke on April 17 at the McCombs VIP Distinguished Speaker Series.
 
Heinz is a brand that has deep roots not just in the United States but worldwide, Johnson said. Here, Heinz is the ketchup brand but elsewhere it is much broader. In China, Heinz is known for baby food while in United Kingdom it is baked beans, which is a dietary staple.
 
“We sell 1.5 million cans of baked beans everyday. The Brits like to eat them on buttered toast for breakfast or snacks,” he said. “It’s an eye opener when you see the way your product is being used.”
 
Heinz has generated growth and developed markets in places such as Australia and New Zealand, using local talent.
 
“We have fully developed management teams in place who are well versed with the local branch and complete infrastructure,” he said. “All these businesses are growing for us in double digits.”
 
Innovations are the secret for sustaining its brand power for 100 years, Johnson said. Heinz continually innovates within key brands.
 
“You must anticipate direct change in consumer behavior and be aware of trends and the environment,” he said.
 
For Heinz, this has meant intense focus on health and wellness in the food industry.
 
“Today’s consumers want food that fits into healthier lifestyles and specific dietary needs,” he said.

—continued below—

Innovations include consumer outreach as well.
 
One outreach tool is the Web site www.myheinz.com, where customers can develop their own labels for bottles of Heinz ketchup that can be shipped worldwide.

Heinz also held a contest in conjunction with YouTube last summer, where consumers could create the next Heinz ketchup commercial for the top prize of $57,000.
 
“The response truly stunned us," Johnson said. "There were 8,000 fully prepared commercial submissions and people spent 200,000 hours watching these commercials."
 
Everything at Heinz is accomplished with new talent and the continued cultivation of existing talent base. Johnson said it is ultimately the responsibility of their employees to maintain the relevance and the resilience of a great brand.
 
“We believe talent will be a competitive advantage companies will need to refine,” he said.
 
Heinz looks for motivated self-starters who make an immediate impact on business with the potential for development of international management skills. Employees at Heinz work in cross-functional teams where everyone invests in their colleague’s success.
 
Johnson advised the students in attendance not to let career ups and downs discourage them.
 
“Don’t let it take away your passion, your commitment, your common sense and your focus and hard work, because ultimately those are the things that will make you successful,” he said.
 
Looking back at his own career, Johnson recalls, “I would have never dreamed of leading a Fortune 500 company when I left UT. I take great pride in the fact that I am the 5th chairman and 6th CEO in the 139-year history of our organization.”