Heinz seeks UK boss to fend off takeover threat

Heinz is to appoint a UK marketing chief to help defend its US management from an ownership challenge.

Heinz's last top marketer, Scott Garrett, was made redundant last August along with his 20-strong department, in a streamlining that coincided with a freeze on Heinz's £11m ad budget.

The cuts were instigated by UK president Jane Miller, who had been briefed to reduce costs in order to boost the division's falling profits.

Miller resigned last month after failing to make sufficient savings.

She will be replaced by former P&G sales director David Woodward.

The food manufacturer is facing accusations of failing to invest adequately in marketing by US corporate activist Nelson Peltz, whose Trian Group owns 5.4% of Heinz. Trian is seeking to gain five board positions at Heinz at its AGM in August.

Peltz also accused the company of spending too much on retail promotions.

This issue particularly affects European operations; insiders estimate that Heinz spends up to £30m each year within stores in the UK.

Heinz's full-year results are due out today (Thursday). The firm is expected to announce a plan to save money with a revamped procurement system and further attempts to reduce its trade promotion budget to free up cash for consumer marketing.

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content