CP+Group+11

=**Product: Heinz Ketchup**=

==**History**== Katrina Op de Beek

Ketchup originated as a tangy sauce in ancient China as a brine of pickled fish called “Ke-tsiap”. Soon other countries adopted this sauce and produced their own variations of “Kechap” which contained fish brine, herbs and spices. English sailors visiting Malaysia were very impressed with this sauce that they took home samples to recreate, but English cooks were not as successful with any access to exotic Asian ingredients. The English improvised using cucumbers, mushrooms, nuts, oysters and other variations. One hundred years later, New English sailors returned from Mexico with seeds of exotic fruit called tomato. The tomato ketchup soon became a popular sauce for codfish, meat, and other foods.

Henry John Heinz was born in 1844 and at an early age started helping his mother in the vegetable garden. In his teens he employed several women to help bottle his mother’s horseradishes for distribution. Twenty years later, while riding the New York elevator, he saw an advertisement for 21 varieties of shoes. He was inspired and intrigued by this concept and came up the catch phrase of “Heinz 57 varieties” because of its memorable number. Heinz developed one of the first mass-marketed ketchups in a classic narrow- neck bottle which simplified and preserved the ketchup avoiding contact with air. Initially the bottles were sealed with cork, dipped in wax and topped with foil. By the turn of the century screw caps provided a more convenient closure and by the 1980s plastic squeezable containers revolutionized packaging.

[[image:http://www.rickleephoto.com/blog/ketchup2.jpg width="179" height="240" align="left"]]Prevalence of Ketchup in the Market Place
Keeley Ryan

Data on the prevalence of ketchup in the Canadian market was difficult to locate. However, in the United States, Ketchup is found in 97% of all households. "It's prevalence is matched only by salt, pepper, sugar, and most recently, salsa" (Herring). In the States, the average person consumes three bottles of ketchup per year. It is used on hotdogs, hamburgers, eggs, mac and cheese, and even rice! According to Herring, in 1981 the Reagan Administration certified ketchup as a vegetable, in order to meet school lunch requirements. Since the most commonly eaten vegetable in the United States is the potato (wikianswers), it is not surprising that ketchup plays an important role in the diet of many Americans. However, ketchup, though prevalent is a condiment, not a staple food. If one is concerned about the sodium or corn syrup content in ketchup, salsa is an excellent alternative, particularly homemade or store bought salsa fresca.

**Nutrient Analysis**
Heather Malone Ingredients found in Heinz Ketchup: tomato paste (made from fresh ripe tomatoes) white vinegar, liquid sugar, fructose syrup, salt, onion powder, spices (Heinz).

**[[image:http://www.smh.com.au/ffximage/2007/04/17/salt_wideweb__470x308,0.jpg width="376" height="246" align="left"]]Nutritional issues**
Heather Malone

(Thunder Bay Regional Health Sciences Centre)
 * Tomatoes:** are the main ingredient in Heinz Ketchup. They contain lycopene, a food pigment that occurs naturally and gives tomatoes their rich red colour. //Lycopene// is considered to be beneficial to the diet because it is a proven antioxidant; antioxidants play an important role in protecting the body from the damages caused by free radicals.


 * White vinegar:** has little nutrient value (Apple Cider Vinegar Benefits)

According to scientists, fructose does not stimulate insulin secretion or increase leptin production. They claim "that dietary fructose may contribute to increased energy intake and weight gain," because insulin and leptin act as signals of food ingestion and weight gain. (Padgalskas, 2009)
 * Fructose syrup:** is commonly composed of 45 per cent glucose and 55 per cent fructose.


 * Salt:** plays a positive role in the body by helping to balance fluids, helping muscles contract and relax and helping in the process of transmitting nerve impulses. The kidneys also regulate the sodium in your body. However there is a limit to the amount of sodium that is beneficial. Too much sodium can lead to high blood pressure, chronic kidney disease, and diabetes. (Veloso, 2009)

[[image:http://www.brsquared.org/wine/Articles/MLF/bacteria.gif width="262" height="197" align="left"]]Food Safety Issues
Keeley Ryan

Ketchup is relatively high in acetic acid. As we learned in Food Safe, food with acidic PH is less likely to spoil. This, combined with the high temperature the ketchup is cooked and bottled at, ensures that sealed Heinz ketchup is quite safe when it is purchased in the store. That is not to say that ketchup is safe at all times: like all foods, it can spoil, and spoiled food presents the danger of transmitting food-borne illness. Spoiled ketchup is usually contaminated with a microbe called lactobacillus fructivorans. This is a bacteria that causes fermentation. Spoilage occurs when opened ketchup is stored between 15 and 30 degrees Celsius (the danger zone). The warm temperature allows microbes to multiply quickly. This is why the ketchup bottle advises the user to "refrigerate after opening". Refrigeration prevents microbes from multiplying, spoiling food and creating the potential for illness. This microbe is also found in spoiled mayonnaise and salad dressing, so one would expect the consequences of consuming spoiled ketchup to be similar: upset stomach, nausea etc.

**[[image:http://sophie-mouton.info/public/images/heinz_factory.jpg width="415" height="297" align="left"]]Analysis of the Manufacturer**
Keeley Ryan

H.J. Heinz, the founder of the Heinz Company, opened the first Heinz plant in Leamington Ontario. Leamington is located at the southernmost tip of the province, on the Great Lakes near Point Pelee National Park. Leamington is known as the “Tomato Capital of Canada”, due to the massive numbers of tomatoes produced each year in the vicinity. The area produces the largest amount of tomatoes per acre in the entire world, a fact that I found surprising. This is partially due to the large amounts of sunlight the area receives, relative to the rest of Canada. According to Wikipedia, Leamington is on the same latitude as Rome, Madrid, and Northern California, which helps account for its suitable tomato growing climate. The Leamington region is so productive that Heinz Canada is able to produce 100 percent of “Classic” ketchup from local tomatoes. This excludes organic, purple and green varieties of ketchup. Heinz contracts out production to 48 local farmers. According to The Windsor Star, Heinz stipulates that farmers must use “safe and sustainable” farming practices (what this means is unclear). In addition, tomatoes are grown from “special Heinz seeds”. I was unable to find information about the seeds as one must be a commercial farmer to access the Heinz Seeds site. I looked at several scholarly articles about the seeds, but couldn’t understand the complicated biological and genetic jargon. I would expect that seeds are modified in a way that makes the tomatoes that grow from them uniform and best suited for ketchup production. I did find an organic variety, called the Heinz 1350 VF though, at a site called Local Harvest. According to the retailer the tomatos are: USDA Certified Organic. (vw, fw1, asc, cr) 75 days. (Determinate.) [Introduced 1963. Developed by the H. J. Heinz Co.] Fruits average 6 to 8 oz., are uniform ripening, and have good crack resistance. 'Heinz 1350' is a productive garden variety with concentrated fruit set and excellent qualities as a processing tomato for canning or cooking. Widely adapted, multi-purpose variety suitable for salad use too. According to the Wikipedia article on the Heinz Company, the Leamington plant also produces a significant amount of ketchup for export to the United States. In addition to ketchup, tomato juice, mustard, vinegar, pickles, baby food, BBQ sauces, canned pastas, beans, pasta sauces, gravies and soups are manufactured there. The Leamington plant is the source of most of the single size ketchup serving packets that are found in North American fast food restaurants. Heinz Canada also has branches in Calgary, St. Mary’s, and Montreal, but these locations are not involved in production. Despite the recession, people are still buying Heinz products. This year, Heinz had record breaking profits. I’ve posted the information excerpted from their press release to Reuters below: • Record sales exceeding $10.1 billion • Organic sales growth of 5.5% • Organic sales of Top 15 brands grew 7.4%, with ketchup up 9.1% (Reported sales • grew 2.1% and 3.2%, respectively) • Record net income of $923 million (+9.2% versus Fiscal 2008) • EPS of $2.90, up 10.3% • Operating Free Cash Flow of $880 million exceeded target • After-tax ROIC increased 160 bps to 18.4% Clearly, Heinz is eager to tap into the organic market, and this move is proving profitable for the company. Their largest problem this year, according to the press release, has been the unfavorable US/Canadian exchange rate, which saw them lose 2.3% in Canada.
 * Fiscal 2009 Full-Year Financial Highlights**

**Manufacturing Process:**
Katrina Op de Beek

**Finding/Producing Quality Tomatoes** Consistency of a tomato is an important factor to the flavor and colour of the finished product.

Tomatoes are harvested mechanically between June and July. They are then transported from the trucks into an inclined water channel which protects the tomatoes from bruising while being passed into the factory. The tomatoes are sorted, washed and chopped. They are then precooked or scaled in stainless steel vats which preserve the tomatoes and destroy bacteria.
 * Preparing the Tomatoes**

The tomatoes that have been chopped and precooked are pumped into pulping machines or cyclones. These machines separate seeds, skins, and stems from the pulp. The Pulp and juices are then filtered through screens and processed into ketchup or stored for use as paste later that year.
 * Pulping**

The pulp is heated to a boil and ingredients are added. Sweeteners, vinegar, salt, spices and flavoring are added to the tomato pulp. Onions and garlic are mixed in with the spices either in a separate bag, or chopped and added directly to the pulp. The mixture of pulp and spices cooks for 30-45 minutes and is constantly circulated with rotating blades. Cooking times must be carefully monitored because overcooking may create an undesirable consistency.
 * Adding ingredients and cooking**

**Finishing** Once the cooking is complete, the mixture is passed through screens to remove any excess particles or fiber.

The mixture is de-aerated to prevent discoloration and the growth of bacteria. Excess air might also affect the closure process of the bottles.
 * Removing air**

To prevent contamination, the mixture is transported from the receiving tank to the filling machines at temperatures no lower than 88C. The containers are filled with the ketchup and immediately sealed for freshness.
 * Filling**

The containers must be cooled in cold air or cold water to prevent flavor loss after the high temperatures of the cooking process.
 * Cooling**

The Ketchup containers are labeled and coded with product information. Ingredients, date and location of manufacturing, and shelf life are included. The entire process takes approximately 2-3 hours.
 * Labeling and packaging**

[[image:http://foodpoisoning.pritzkerlaw.com/tomatoes-red.jpg align="left"]]**Methods and Issues Associated With the Supply Chain**
Carrie Dunn

Heinz has posted the following corporate social mission on its website:

“Heinz will achieve sustainable growth by enhancing the nutrition, health and wellness of people and their communities. We will conduct business in an ethical manner, guided by our strong commitment to integrity, safety, and the principles of social and environmental responsibility. In communities where we operate, Heinz will manufacture safe, high-quality products, reduce environmental impacts, and maintain business and labor practices that ensure human safety and dignity. As a global company, Heinz will also make the world a better place to live by helping people in need through our charitable foundations, employee contributions, and community partnerships.”

Heinz Ketchup is the world’s number one ketchup and each year, Heinz U.S.A produces more than one billion ounces of Heinz Ketchup and with estimates of approximately one-third of the world market (Seedquest). With these numbers, Heinz could be a leader for other global companies if the above mission statement is indeed followed.

Tomatoes are grown world-wide and form an important source of income for small farmers, as well as supply local diets. Tomato farmers in developing countries make wide use of pesticides, generally without training in identifying a need for the pesticides or in application. Occupational and consumer safety becomes an issue.

Heinz claims to use tomatoes grown in Mexico and California and have even introduced organic ketchup. “Heinz Organic Ketchup is produced at Heinz’s Leamington, Canada facility, using red-ripened tomatoes from the company’s organic tomato fields in Escalon, California” (Seedquest). The organic ketchup may appeal to those consumers who demand pesticide-free products, but the issue around food miles arises. The tomatoes need to move from California to Leamington in Canada and then once processed into ketchup, are shipped back into the North American market. Use of locally grown tomatoes, at least through the growing season in Canada, could help minimize this.

Growers are also responsible for using most of the water in the supply chain but have taken steps to minimize these. Large water savings have been realized by using “improved drip tap irrigation techniques over spray and flood irrigation practices previously used” (www.p2pays.org) and Heinz is working with farmers to utilize treated waster water for irrigation., as well as for in-factory use.

Heinz is on a quest for a sweeter tomato and this is not due to the nutrition issue around the use of high-fructose corn syrup in its ketchup, but rather the cost of the corn sweetener. “The price of high-fructose corn syrup has nearly doubled in the past four years, while ketchup prices are rising much more slowly” (Horsley). The article goes on to state that the search for the seeds that will produce a tomato with more natural sugars is done the old-fashioned way, with no genetic engineering. “Breeders go through the labor intensive process of producing hybrid seeds. Left alone, tomatoes would self-pollinate, so in order to cross two plants, breeders have to cut off the pollen-bearing part of one flower by hand, and then dust the flower with pollen from a different plant. The resulting seeds are then tested on Heinz’s experimental farm” (Horsley).

Finally, Heinz uses specific Supplier Guiding Principles and will sever relationships with suppliers who fail to uphold these principles. At the time of writing this, I could not find a case concerning Heinz and contentious labor issues. They are as follows: (Heinz, Supplier Guiding Principles):

Suppliers will comply with all applicable laws and regulations in providing goods and services to Heinz.
 * [[image:http://en.maquilasolidarity.org/sites/maquilasolidarity.org/files/images/2008-11-20__OCA_piece.jpg width="408" height="272" align="left"]]Legal Requirements**

Minimum Age for Employment- Suppliers will not employ anyone under the legal working age as defined by local law.
 * Employment Practices**


 * Forced Labor**- Suppliers will not use forced or involuntary prison labor.


 * Abuse and Harassment**- Suppliers will not use corporal punishment or other forms of physical or sexual harassment or abuse of their employees.


 * Discrimination**- Suppliers will not discriminate on the basis of any condition or characteristic which is protected by applicable law or regulation.


 * Freedom of Association**- Suppliers will recognize and respect each employee's right to associate with any legally sanctioned organization. The rights of labor unions must be respected.


 * Work Hours, Work Week and Payment of Wages**- Suppliers will comply with all applicable local laws.


 * Health and Safety** - Suppliers will provide employees with working conditions that are in compliance with all applicable laws and regulations regarding worker health and safety.

Our suppliers will be expected to meet applicable environmental laws and regulations in their operations and to develop and implement plans and programs to correct any non-compliant practices.
 * Environmental Practices**

We expect our suppliers to take appropriate steps to communicate these "Supplier Guiding Principles" to their employees, including posting these Principles in the local language in an accessible place.
 * Communications**

As part of the implementation of these Supplier Guiding Principles, these Principles will be incorporated into all new or renewed commercial agreements between suppliers and Heinz and its affiliates. Suppliers will be expected to certify their compliance with these Supplier Guiding Principles at Heinz's request and to authorize Heinz and its designated agents (including any third parties) to engage in monitoring activities, including unannounced on-site inspections. When Heinz becomes aware of any actions or conditions not in compliance with these Supplier Guiding Principles, such actions or conditions will be reviewed, and appropriate corrective measures will be implemented.
 * Monitoring and Compliance**

**Works Cited:**
Apple Cider Vinegar Benefits Accessed June 15, 2009, from: [| http://www.apple-cider-vinegar-benefits.com/types-of-vinegar.html]

Bjorkroth K.J and Korkeala H.J. "Lactobacillus fructivorans spoilage of tomato ketchup. __Journal of food protection__.1997, vol. 60, no5, pp. 505-509 []

Heinz, retrieved June 20, 2009 from [| http://www.Heinz.com/CSR_2007/governance/CSR_mission.html]

Heinz, Supplier Guiding Principles, retrieved June 20, 2009 from []

Heinz Website, ©2007 Heinz Canada Accessed June 15, 2009 from: [| http://www.heinzitup.com/products.asp]

Herring, D. "History of Ketchup" on helium.com []

Horsley, Scott. Heinz on Quest for Sweeter Tomatoes, retrieved July 1, 2009 from [| http://www.npr.news/templates/story/story.php?storyId=90277097]

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Padgalskas, Vanessa (May 4, 2009) High-Fructose Corn Syrup in the American Diet

Seedquest, retrieved June 20, 2009 from [| http://seedquest.com/processingtomato/news/heinz/p1001.htm]

“Tomato Sauces Supply Chain Environmental Management”, retrieved June 20, 2009 from []

Thunder Bay Regional Health Sciences Centre, |© 2009 TBRHSC Corporation Accessed June 15, 2009, from: [| http://www.tbrhsc.net/patient_information/nutrition_articles/tomato.asp]

Veloso, Marlene A dash of salt can really add up, © 1996 - 2009 MediResource Inc.AccessedJune15,2009,from []

What is High-Fructose Corn Syrup and How Does It Affect Our Health? Accessed June 15, 2009 from: []

Whipp, T. “Would you like ketchup with your cake?”. The Windsor Star. June 10, 2009.

WikiAnswers."What is the most popular vegetable in the US?" 2009. []

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