Heinz partners with Spanish manufacturer

Heinz Europe  has strategically aligned with Spanish food group Ybarra,  the market leader in cold sauces. Ybarra’s Dos Hermanas plant, in the province of Seville, currently produces Ybarra-branded mayonnaises, sauces, olive oils, sunflower oils and vinegars. It will now also carry out the production and packaging of a new range of sauces that Heinz will be launching in Europe next year.

Both companies have indicated that in the medium-term, they are prepared to extend the scope of this agreement to other areas of business. In 2006, Ybarra’s turnover amounted to €180 million.

Meanwhile, just two months ago, Zimbabwe's government took over Heinz's 49% stake in Olivine Industries, the African nation's leading cooking oil maker for US$6.8 million. Heinz, was one of the first foreign investors in Zimbabwe after the country's independence from Britain in 1980. Zimbabwe's government initially owned 51% of Olivine Industries, in a 1982 partnership which gave H.J Heinz a contract to manage the business.

Zimbabwe's parliament is considering enacting a law that seeks to transfer majority ownership of businesses to locals, which means other CPG manufacturers may be affected.