Hero today announced that it has successfully raised CHF 400 million IFRS-equity hybrid capital

Lenzburg, 30 October 2009

Hero today announced that it has successfully raised CHF 400 million IFRS-equity hybrid capital as a means of financing its continuing transformation into a global FMCG player.

Hero’s issue represents the first corporate hybrid transaction launched in Europe since 2008 and is the first ever such product issued in the Swiss market. This instrument which qualifies for accounting treatment as equity under the provisions of the International Financial Reporting Standards, offers investors a coupon of 6.5% and is undated but is callable by Hero, for the first time after seven years.

Working with Deutsche Bank and Credit Suisse, Hero was able to raise the full amount within three hours of book building. A key element of the success of this issue was the strength of the Hero name in the Swiss investor community and the Hero corporate strategy focused on high quality brands, internationalization and product innovation within the Group’s core categories of Infant Nutrition and Fruit.

Stefan F. Heidenreich, Group Chief Executive, commented: “This successful capital-raising shows how Hero is innovative not only in terms of products and markets, but also financing. The proceeds will give Hero significantly more financial flexibility and will be used to fund Hero’s contemplated purchase of the remaining 49% equity in the Group’s German subsidiary, Schwartauer Werke, as well as the Group’s continuing strategy of acquiring strong brands and opening up new geographic regions.”

Abbott Partners with Beech-Nut in the US

The new partnership provides parents with nutrition education and support

Lenzburg, 12 August 2009

Abbott, the maker of Similac® infant formulas announced today, that they have partnered with baby food maker Beech-Nut Nutrition, a subsidiary of the Hero group to provide new parents with infant and toddler parenting tips, tools and offers through the companies web sites.

As part of the collaboration, these two nutrition leaders will offer the combination of both of their parenting information and promotional offers at one of two convenient locations: StrongMoms.com, Abbott Nutrition's web site for new parents, and BeechNut.com

Abbott's Similac® franchise enjoys strong market positions in North America and around the globe. Beech-Nut Nutrition is the #2 player in baby food in the United States. Hero has leading positions in baby and toddler foods in Europe, North America, the Middle East and Africa.

"This partnership will offer new parents the additional support they need to make the right feeding choices as well as provide valuable parenting information and insight as their infant moves from one stage to another," said Donald Patton, senior vice president, Abbott Nutrition. "Both Abbott and Beech-Nut are committed to giving infants and toddlers a strong start in life."

Stefan F. Heidenreich, Hero Chief Executive Officer, commented: "This new and exciting partnership will provide an enormous boost to the Beech-Nut franchise and marks an important strategic milestone in the development of the Hero group as an increasingly respected and recognized player in infant nutrition."

Hero/WhiteWave inaugurates new Fruit2day® plant in the United States

Lenzburg, 21 April 2009

Hero/WhiteWave today inaugurated a new state-of-the-art chilled-fruit plant in Mount Crawford, Virginia and announced the upcoming national launch of the Fruit2day® brand in the United States beginning May 1, 2009. The product will be marketed and produced by Hero/WhiteWave LLC, the strategic 50/50 joint venture that Hero and WhiteWave Foods, a division of Dean Foods (NYSE: DF), formed in 2008.

Hero’s Fruit2day is a unique concept in chilled fruit was initially developed and launched in 2003 in the Netherlands and has since then been successfully rolled out in a number of European markets.

The new plant represents a total investment by Hero/WhiteWave of more than $35 million and provides a unique platform to develop a wide range of chilled-fruit innovations in the coming years.

Stefan F. Heidenreich, Hero CEO, commented: "We believe that North America is ready for Fruit2day. We will build on the success of Fruit2day in Europe to successfully launch into the $700 million US Chilled Fruit category. Dean's WhiteWave division represents an excellent partner for Hero based on their sales and distribution strength in the US and our shared passion for providing consumers with innovative, nutritious products."

2008 - Another strong year for Hero

Lenzburg, March 2009

2008 saw a further year of strong organic growth across the whole Hero Group driven by nutrition-focused innovation in the areas of Infant and Fruit, coupled with international expansion and strategic acquisitions.

Consolidated revenues for 2008 reached CHF 1,919 million. Adjusting for changes in the scope of consolidation and exchange rate movements, the organic growth rate was 6.3%. Adverse foreign-exchange rates (predominantly a weaker Euro and Dollar) impacted overall sales by 5%.

The Group’s Infant Nutrition category now represents close to 40% of total revenues and delivered a growth of over 12% in 2008. This strong performance in Infant and continued growth in the Fruit category enabled Hero to increase the proportion of total revenues generated within Nutrition to a new high of 60%.

The strong growth dynamic in North America, Turkey / Central Asia and Middle East / Africa regions further enabled Hero to make steps forward in increasing the proportion of sales made outside Europe to a new high of 25%.

Stefan F. Heidenreich, Group Chief Executive, commented: “In 2008, Hero’s strong performance has clearly shown the resilience of the Hero model in delivering strong growth, international expansion and further acquisitions despite the significant economic downturn seen in all our major markets. As we enter 2009 with a global recession setting in, we remain confident that with our product portfolio centred on Infant and Fruit along with our best-in-class innovation know-how, we are well equipped to tackle the challenges of the coming year.”

Hero and Ülker open new Jar Baby Food Factory in Turkey

Further strengthening of Hero's position in Infant Nutrition Turkey, Middle East and Africa

Lenzburg / Ankara, Tuesday, 13 Januar 2009

Hero and Ülker Hero Baby today announced the opening of a newly constructed, state-of-the-art infant-jar factory in Ankara, Turkey. The new plant is the first jar production facility not only in Turkey, but the wider region and has a yearly total capacity of 50 million units. The investment of more than CHF 15 million will enable Hero to offer to mothers high-quality infant-jar products at affordable and highly competitive prices. The new factory was formally opened by Dr. Arend Oetker, Chairman of the Hero Group, Ali Ülker, President of Yildiz Holding Group, and Hero Group CEO Stefan F. Heidenreich.

Since its start in 2002, the Infant-nutrition partnership in Turkey with the Ülker family has delivered outstanding results in developing a leading infant-nutrition franchise in Turkey and supporting the development of Hero’s business in Middle East / Africa. In the course of 2008, the business again delivered double-digit organic growth and more importantly achieved the Number One market position in the high-growth Turkish infant-nutrition market.

Stefan F. Heidenreich, Hero CEO, commented: The key elements underlying the success of this venture are the inherent strength of the partnership leveraging both Hero’s innovation and know-how in Infant and Ülker’s local dominance and distribution power in Turkey. In addition, the infant-cereal plant opened in 2003 in Ankara has enabled us to offer high-quality locally-produced products at affordable prices and thereby grow not only our market share, but importantly the infant market size and consumption in total. The new plant will provide Hero with a highly competitive supply point that will benefit Hero in Turkey, Middle East and Africa.

Dean Foods and Hero Group partner in North America

Strategic Joint Venture to Introduce New Innovative Chilled Fruit Products

Broomfield, 04 November 2008

Dean Foods Company (NYSE: DF) and Hero Group (Switzerland) today announced a strategic joint venture to introduce new innovative chilled fruit products to North America. The 50/50 joint venture, called Hero/WhiteWave, joins the expertise of Dean Food’s WhiteWave Foods division, maker of Silk® soymilk and Horizon Organic®, with Hero Group, a leading nutrition-focused company in fruit and infant nutrition.

The joint venture, based in Broomfield, Colorado, serves as a strategic growth platform for both companies to further extend their global reach by leveraging each other’s established innovation, technology, manufacturing and distribution capabilities.

“I look forward to the new opportunities the joint venture brings to both companies,” said Joseph E. Scalzo, President and CEO of WhiteWave Foods. “WhiteWave and Hero both enjoy a rich legacy of bringing innovative, healthy foods to consumers. We also share a common vision and commitment to innovation and proven brand leadership. Together, we’re ready to break the mold of similar goods currently on the U.S. market.”

“We believe that North America is ready for new, ground-breaking chilled fruit category innovations, and we have found the ideal partner with Dean Foods,” said Stefan F. Heidenreich, Hero Group CEO. “Dean’s WhiteWave division was a natural match for us because of our shared passion for providing innovative, nutritious products to consumers. We believe this partnership provides a compelling market opportunity.”

The first Hero/WhiteWave product, which is called Fruit2Day™, will be an innovative new healthy food product that offers consumers a surprising and convenient way to enjoy the goodness of fruit. Fruit2Day is a satisfying on-the-go chilled convenient fruit snack that offers a completely new way to experience fruit and helps consumers overcome common barriers to getting more fruit in their diets. It will be the first product of its kind in U.S. stores and has successfully launched and continues to grow in major European markets. Fruit2Day will be rolled out for nationwide distribution by mid-2009.

Hero acquires Houston Harvest

Lenzburg, 22 August 2008

Hero today announced that it has acquired Houston Harvest, the US leading player in seasonal popcorn products.

Houston Harvest has a dominant market share in its markets and generates annual revenues of over $40 million.  This acquisition will be integrated in Hero's Signature Brands operations in Ocala Florida and represents an excellent complement to Signature Brands' existing seasonal businesses, PAAS (Easter) and Pumpkin Masters (Halloween).

Stefan F. Heidenreich, Hero CEO commented: "This new business represents an excellent complement to Signature Brands' existing high-margin seasonal businesses - we will now have a market-leading franchise for Easter, Halloween and, with this transaction, Christmas.  The business has previously been under private-equity ownership and we believe that by leveraging our ever stronger retail presence in the US and the depth of our product innovation capabilities, we can significantly grow this business both top line and bottom line in the coming years.”

Hero acquires Bledina Infant-Nutrition Licences from Groupe Danone

Lenzburg, 11 June 2008

Hero today announced that the European Commission has approved the takeover of the Bledina Infant-Nutrition licences in Belgium and the Netherlands from Groupe Danone.

European Union competition authorities required Groupe Danone to divest the Bledina positions in Belgium and the Netherlands as a condition for its approval of Danone's acquisition of Royal Numico N.V. in November 2007. As part of this transaction Danone and Hero have entered into legal agreements by which Hero will be granted a five-year licence to use the Bledina brand in Belgium and the Netherlands.

Stefan F. Heidenreich, Hero's CEO commented: "Bledina is a strong #2 position in Belgium. This transaction represents another important step in Hero's continuing development as an international infant-nutrition player."

Hero to invest $125m in Infant-Nutrition Plant in North America

Lenzburg, 21 Mai 2008

Hero today announced that it has broken ground on a new state-of-the-art infant-nutrition production facility in up-state New York. The total investment in this new facility will amount to $125 million and represents the largest single capital expenditure project undertaken by the Group.

The new facility, scheduled to commence production in late 2009, will place at Hero's disposal one of the most modern and efficient babyfood factories in the world enabling Hero to continue to be a leader in nutrition-focused innovation.

Stefan F. Heidenreich, Hero's CEO commented: "With the prospect of a new cutting-edge production facility, we are confident that Beech-Nut will be able to increase growth and efficiency and become an even stronger infant-nutrition player in North America."

Europe’s Largest Gluten-Free Bakery to Open in Wales

Lenzburg, 28 April 2008

Hero today announced that it has entered into a five-year partnership agreement with UK-based firm The Village Bakery as regards the production of a full range of gluten-free bakery products.

As part of the partnership, The Village Bakery will invest over £3 million to develop a new state-of-the-art plant in Wrexham, Wales which is scheduled to be operational on the course of June and reach full capacity by August. The new plant will be the most automated of its type in Europe.

Stefan F. Heidenreich, Hero CEO, commented: "Hero's success in gluten-free is driven first and foremost by offering consumers the highest product quality together with a continual flow of new product offerings. We see our new relationship with The Village Bakery as a key success factor for the future as we seek to extend our market-leadership in the UK, Ireland and Scandinavia and develop new positions in other European markets."

2007 – Another successful year for Hero

Lenzburg, 04 April 2008

In 2007, the Hero group achieved best-in-class organic growth driven by nutrition-focused product innovation and continuing strong international expansion.

Group consolidated revenues for 2007 reached CHF 1,875 million. Adjusting for changes in the scope of consolidation and exchange rate movements, the organic growth rate was 8.0%.

The Group’s Infant Nutrition category grew by over 20% in sales terms and overtook the Fruit category to become the Group’s largest and now represents 40% of total revenues. The Fruit category, representing 35% of total sales, also delivered impressive growth of almost 10%. As a result, the percentage of Group revenues generated in 2007 within Nutrition increased to over 55%.

The high growth rates achieved in North America, Africa/Middle East and Turkey/Central Asia have enabled Hero to further decrease its reliance on Europe and the Group’s proportion of sales generated outside Europe passed the 25% mark in 2007.

Stefan F. Heidenreich, Group Chief Executive, commented: “2007 has been a splendid year in all respects. Even more pleasing, 2008 already shows strong growth continuation driven by best-in-class product innovation and major investments into developing new markets. In addition, our recent acquisitions – Friso Netherlands, Organix UK, Juvela UK – are already stimulating further growth momentum and excitement.”

Hero Acquires Organix Brands

Lenzburg, February 2008

Hero today announced that it has acquired Organix Brands, a leading UK infant-nutrition player from its founder Lizzie Vann. The terms of the transaction were not disclosed.

Founded in 1992 by Lizzie Vann,Organix has developed strong positions in the UK’s babyfood and toddler food markets and is the clearer leader in offering consumers superior product quality as part of its “No Junk Promise”. Organix has experienced exceptionally highly growth rates in recent years driven by a continual flow of new product offerings. In its 2007/8 fiscal year, year-on-year sales growth is expected to be again at over 30% and revenues in its current fiscal year of £25 million. Hero has been the largest supplier of the business over the past years.

This acquisition enables Hero to enter one of Europe’s largest infant-nutrition market and gives the group key expertise in the areas of organic babyfood. In addition, Organix has created a unique niche in the area of toddler food which will become increasingly important in both the UK and internationally as concerns over toddler health and in particular, obesity escalate.

As part of the transaction, Lizzie Vann has agreed to remain as President of the Organix Board and to provide consultancy services to Hero for the coming three years.

Stefan F. Heidenreich, Group Chief Executive, commented: “Organix represents an excellent addition to the Hero family of brands. Not only does it give the Group an first-class position in the UK which we believe we can develop leveraging the innovation successes we have achieved in other infant markets, but also it provides us with whole new areas of insight and expertise in the areas of organic and toddler foods that will significantly enhance the Group’s nutritional credentials internationally.”