PURE FOODS SINCE 1869 - Heinz

The need for and effect of product recalls could have an adverse impact on the
Company’s business.
If any of the Company’s products become misbranded or adulterated, the Company may need to
conduct a product recall. The scope of such a recall could result in significant costs incurred as a result
of the recall, potential destruction of inventory, and lost sales. Should consumption of any product
cause injury, the Company may be liable for monetary damages as a result of a judgment against it. A
significant product recall or product liability case could cause a loss of consumer confidence in the
Company’s food products and could have a material adverse effect on the value of its brands and
results of operations.
The failure of new product or packaging introductions to gain trade and consumer
acceptance and changes in consumer preferences could adversely affect our sales.
The success of the Company is dependent upon anticipating and reacting to changes in consumer
preferences, including health and wellness. There are inherent marketplace risks associated with
new product or packaging introductions, including uncertainties about trade and consumer acceptance.
Moreover, success is dependent upon the Company’s ability to identify and respond to
consumer trends through innovation. The Company may be required to increase expenditures for
new product development. The Company may not be successful in developing new products or
improving existing products, or its new products may not achieve consumer acceptance, each of
which could negatively impact sales.
The failure to successfully integrate acquisitions and joint ventures into our existing
operations or the failure to gain applicable regulatory approval for such transactions
could adversely affect our financial results.
The Company’s ability to efficiently integrate acquisitions and joint ventures into its existing
operations also affects the financial success of such transactions. The Company may seek to expand
its business through acquisitions and joint ventures, and may divest underperforming or non-core
businesses. The Company’s success depends, in part, upon its ability to identify such acquisition and
divestiture opportunities and to negotiate favorable contractual terms. Activities in such areas are
regulated by numerous antitrust and competition laws in the U. S., the European Union, and other
jurisdictions, and the Company may be required to obtain the approval of such transactions by
competition authorities, as well as satisfy other legal requirements. The failure to obtain such
approvals could adversely affect our results.
The Company’s operations face significant foreign currency exchange rate exposure,
which could negatively impact its operating results.
The Company holds assets and incurs liabilities, earns revenue, and pays expenses in a variety of
currencies other than the U.S. dollar, primarily the British Pound, Euro, Australian dollar, Canadian
dollar, and New Zealand dollar. The Company’s consolidated financial statements are presented in
U.S. dollars, and therefore the Company must translate its assets, liabilities, revenue, and expenses
into U.S. dollars. Increases or decreases in the value of the U.S. dollar may negatively affect the value
of these items in the Company’s consolidated financial statements, even if their value has not
changed in their original currency.
The failure to complete the strategic transformation through further simplification
and cost savings could adversely affect the Company’s ability to increase net income.
As publicly announced, the Company has been implementing a strategic transformation initiative
to simplify its business, further prune and realign its portfolio, sell underutilized assets,
reduce cost and increase efficiency, and sharpen its focus on three core categories of Ketchup &
Sauces, Meals & Snacks, and Infant Food. The success of the Company could be impacted by its
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