Heinz juggles HP portfolio
Heinz may not keep all of the brands it has acquired from HP Foods in last month's £470m takeover, analysts have predicted.
It is also unlikely to maintain HP's head office site in Enfield for any length of time, said Investec Securities' Nicola Mallard.
"Enfield is probably not part of the long-term plan, although there will be restructuring anyway as Heinz decides what to do with its frozen food operation," she said.
The Transport & General Workers' Union gave a "cautious welcome" to the deal on the grounds that staff at HP factories at Birmingham and Worcester were probably safe, but they had not been told what the company's long-term ambitions were. Heinz corporate affairs director Michael Mullen declined to comment on its plans for HP's Enfield HQ, which employs about 130 staff, but said job losses could not be ruled out. He said that suggestions from some analysts that Heinz would ditch the Daddies ketchup brand were also "premature"
He added: "There will be a thorough review of the portfolio taking 60--90 days. But sometimes you make an acquisition and divest a couple of smaller brands."
The deal puts Amoy noodles, Lea & Perrins Worcestershire Sauce, HP sauces and canned goods, Daddies ketchup and Rajah Indian herbs into the Heinz stable.
"There are lots of opportunities to grow these brands through our marketing and distribution channels," added Mullen. "It also takes us into ethnic foods -- a new area and a fast-growing one; Amoy is showing double-digit growth."
