5.27.2008 - 01:14pm ET

(CSRwire) The amount of water used to grow tomatoes for Heinz Ketchup will be reduced by 15 percent over the next ten years


PITTSBURGH, PA - May 27, 2008 - The H. J. Heinz Company (NYSE:HNZ) announced today a milestone company goal: to reduce its greenhouse gas emissions by 20 percent by 2015. This effort is part of Heinz's sustainability vision, to be a trusted leader in nutrition and wellness, dedicated to the sustainable health of people, the planet and the Company.

"From using potato peels to generate energy, to reducing the amount and size of our packaging, every day we're finding new ways to reduce our environmental footprint and improve the efficiency of our company," said Heinz CEO Bill Johnson. "Everyone in the Heinz community is involved in this sustainability effort - from our employees to many of our largest customers and suppliers."

Heinz is focusing on eight specific areas to achieve its goal by 2015:

• Energy consumption - 20% reduction through improved operational efficiency


• Packaging - 15% reduction by the introduction of alternative packaging materials and reduction of existing packaging use


• Transportation - 10% reduction through improved efficiency of distribution network


• Renewable energy - 15% to come from renewable sources, including solar, biomass and bio-gas


• Agriculture - 15% reduction of carbon footprint, 15% reduction of water usage, improvement of yields by 5% through use of hybrid tomato seeds that require less water, fertilizer, pesticides and fuel to harvest


• Water - 20% reduction through reuse and improved sanitation techniques


• Solid Waste - 20% reduction through increased recycling and reuse of waste


• Employees - Increase employee engagement through a voluntary personal sustainability campaign

• Using potato peels to generate energy and save water: At the Company's facility in Ontario, Oregon, Heinz is in project development stages to convert potato peels into bio-fuel, which will then be distributed to a central natural gas pipeline for sale and distribution. The project is expected to generate enough energy to heat 4,000 Oregon homes for a winter (390,000 MMbtu's).
  
  The same project in Ontario is slated to treat and recycle 90% of the water used for daily potato production. The project is expected to save one billion gallons of water per year, or enough to supply 11,000 Oregon homes with water for a year.



• Conserving fuel globally: Improving the efficiency of the Company's distribution network through fuller truckloads with more direct routes and shifts to rail will save more than 2 million gallons of fuel globally.



• "Green" tomatoes: Heinz is expanding its growing regions into China, Egypt, and Eastern Europe, providing more local sources of tomatoes and lessening the need to transport tomato paste around the world.



• Reducing waste through recycling: In Fremont, Ohio, Heinz is on track to reduce solid waste - which would normally end up in a landfill - by 10%, or 800,000 lbs of recyclable material. In Dundalk, Ireland, the Heinz facility is already recycling 95% of the plastic and 99% of the cardboard, wood and steel it uses.

• sales, earnings, and volume growth,


• general economic, political, and industry conditions,


• competitive conditions, which affect, among other things, customer preferences and the pricing of products, production, and energy costs,


• increases in the cost and restrictions on the availability of raw materials, including agricultural commodities and packaging materials, the ability to increase product prices in response, and the impact on profitability,


• the ability to identify and anticipate and respond through innovation to consumer trends,


• the need for product recalls,


• the ability to maintain favorable supplier relationships,


• currency valuations and interest rate fluctuations,


• changes in credit ratings and economic conditions and the impact of these factors on the cost of borrowing and access to capital markets,


• our ability to effectuate our strategy, which includes our continued evaluation of potential acquisition opportunities, including strategic acquisitions, joint ventures, divestitures and other initiatives, including our ability to identify, finance and complete these initiatives, and our ability to realize anticipated benefits from them,


• the ability to successfully complete cost reduction programs and increase productivity,


• the ability to effectively integrate acquired businesses, new product and packaging innovations,


• product mix,


• the effectiveness of advertising, marketing, and promotional programs,


• supply chain efficiency,


• cash flow initiatives,


• risks inherent in litigation, including tax litigation,


• economic or political instability in international markets, particularly in Venezuela, and the performance of business in hyperinflationary environments,


• changes in estimates in critical accounting judgments and changes in laws and regulations, including tax laws,


• the success of tax planning strategies,


• the possibility of increased pension expense and contributions and other people-related costs,


• the potential adverse impact of natural disasters, such as flooding and crop failures,


• the ability to implement new information systems, and


• other factors described in "Risk Factors" and "Cautionary Statement Relevant to Forward-Looking Information" in the Company's Form 10-K for the fiscal year ended May 2, 2007.

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