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New Executive Board Appointments

The Swiss food group Hero has today announced that, effective April 1st 2012, Hans Huistra will be promoted to Executive Vice-President and will become a member of the Group’s Executive Board. At the same, Stephan Schopp will become the Group’s Chief Financial Officer replacing Andrew Lawson who has elected to leave the Group.

Hans Huistra has been with the Group since 2011 and has overall responsibility for the Group’s operations in Central and Eastern Europe, the Middle East and Africa (CEEMEA). Previously he has been working with FrieslandCampina and Unilever in senior management roles in Europe, the Middle East and the Far East. His deep international knowledge and experience in the food industry equip him well to lead and develop Hero’s high-potential CEEMEA region.

Andrew Lawson joined the Group in 2000 to set up and lead the Group’s business development and M&A function and was promoted to CFO in 2006. During this time, the Group has undergone a fundamental change in strategy as a result of organic growth and a high volume of M&A transactions to become one of the leading global infant players with substantial positions in Europe, North America, CEEMEA and, most recently, China. Today, Hero generates more than 45% of its revenues in Infant Nutrition and has a leading international position in jams.

Stephan Schopp joined AOH Nahrungsmittel GmbH & Co. KG, Hero’s parent company, in 2002 as Financial Controller. Since then he helped to focus AOH’s activities on branded business, divesting AOH’s industrial portfolio. Since 2004, he also took over management responsibility for other non-food investments of Dr. Arend Oetker. In 2006, Stephan Schopp was, in addition, appointed CFO of Hero’s largest subsidiary Schwartauer Werke.

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New generation in the Hero board of directors

Hero has today announced a change in the composition of the board of directors. Werner Holm (71) and Dr. Lutz Peters (70), two distinguished contributors to the strategic realignment that the traditional Swiss company has been pursuing over the past 15 years, are stepping down from the board.

Dr. Arend Oetker, majority shareholder and president of the Hero group’s board of directors, acknowledged the valuable services of his two partners and colleagues. “Werner Holm and Lutz Peters started working at Schwartau over 37 years ago and, as part of the management, played a major part in the impressive rise of this company. Together with me, they were the driving forces behind the acquisition of Hero AG, the merger of the two companies and the strategic development of the Hero group, turning it into an internationally operating business. For this I would like to extend to them a very sincere, warm thank you.”

From 1 January 2012 their successors Dr. Hasso Kaempfe (61) and Dr. Hagen Duenbostel (41) will take up their seats on the board of directors. Michael Pieper (65) and Herbert J. Scheidt (60), vice-chairman, will continue to serve on the board as before

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Peter Amon becomes new CEO at Hero

The Hero board of directors has appointed Peter Amon (47) as the new Chief Executive Officer. He will assume his role at the group headquarters in Lenzburg on 16 January 2012. Peter Amon has extensive international experience in the food industry. A native of Germany, he has held various executive positions for Unilever, Kraft and Aramark in Germany, USA, China and other countries.

“Peter Amon is a recognized personality with a far-sighted business approach. With his dedication for branded foods and his deep experience in the USA and China, he is a big win for us”, said Dr. Arend Oetker, majority shareholder of Hero AG. According to him, the new CEO will guarantee continuity and the pursuit of the group’s international growth strategy. “Together with all our staff, he will help to advance the Hero success story further”, continued Oetker.

At the time of his appointment, Peter Amon emphasized that Hero had undergone exemplary growth since 1995 for a traditional company in the food industry. “I am greatly looking forward to contributing my expertise to this company and to working with a capable and experienced management team in order to shape the future of Hero”.

The corporate management of Hero consists of six members. Alongside the CEO, members of the board include René Bänziger, Deputy CEO, Andrew Lawson, CFO, Markus Lenke, Executive Vice President Northern Europe, Jim Schneider, Executive Vice President North America and Rob Versloot, Executive Vice President Southern Europe. Peter Amon succeeds Stefan F. Heidenreich, who will be leaving the company after 15 years on the corporate management.

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Enlargement of the Hero Executive Board – CEO Stefan F. Heidenreich to leave the Group in 2012

The Swiss food group Hero has today announced that the CEO Stefan F. Heidenreich will leave the group at the end of the first quarter in 2012. Heidenreich’s departure will take place after fifteen successful years with the group and is based on the mutual consent of both parties. Effective July 1st, 2011, the Executive Board will be strengthened. René Bänziger will be appointed to the new position of Deputy CEO. Further, Jim Schneider, currently Regional Vice- President (RVP) North America, Markus Lenke, RVP Northern Europe and Rob Versloot, RVP Southern Europe have been appointed members of the Executive Board. A separate communication will be made in due course concerning the group’s new CEO.

“Over recent years Hero’s geographic expansion has been so fast that a strengthening of the group’s senior management team has become increasingly inevitable,” explained Dr. Arend Oetker, majority shareholder of Hero AG. The Board has been carefully preparing for these Executive Board changes for some time. Bänziger and the newly appointed members of the Executive Board all have deeply rooted knowledge of the group. Bänziger has been part of the senior leadership team for the past seven years and employed with the group for 25 years. Andrew Lawson has been with the group since 2000 and CFO since 2006. Jim Schneider and Markus Lenke each have had almost twenty years’ experience in various roles with the Lenzburg-based food group. Rob Versloot joined Hero in 2008.

Stefan F. Heidenreich joined the group as part of the Executive Board in 1996 and assumed the CEO role in 2002. Under his leadership Hero has increasingly focused on fewer core product categories, on developing a strong brand portfolio and over recent years has expanded its presence especially in the Infant Nutrition category which now generates more than 45 per cent of group revenues. At the same time, the group has been able to strengthen its position as a market leader in the area of jams. In 2010 Hero was successful in delivering another record result. Oetker continued: “With the departure of Stefan F. Heidenreich Hero loses a proven manager with global vision and determination. I respect his decision and understand that he wishes to seek new professional challenges outside the group.”

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2010 – An Excellent Year for Hero

Hero today announced that it was successful in delivering a record financial performance in 2010 driven by good sales growth, strategically important moves in acquisitions and disposals and excellent progress in building a word-class supply chain.

Hero’s performance in 2010 was at record highs as the Group increased its presence in Infant Nutrition which now accounts for over 45% of group revenues. Outstanding sales growth was recorded in North America, where the Group’s largest ever investment, a new state-of-the-art infant plant in upstate New York, is now operational. In addition, the Middle East Africaand East European regions also delivered strong growth while Europe showed more modest growth rates. Adjusted for the effects of foreign exchange and changes from M&A activities, revenues grew in total by almost 4%.

During the year, the Group made a number of strategic disposals and acquired a controlling interest in a large-scale Infant project in China which will enable Hero to enter the Chinese infant market in the course of 2011.

Stefan F. Heidenreich, Group Chief Executive, commented: “2010 has been a record performance financially driven by the strength of the Group Agenda with its focus on value-added nutrition products and strong brands underpinned by a best-in-class international supply chain. In addition, we made a number of strategically important steps in terms of acquisitions and disposals that will strengthen the portfolio and provide significant potential for revenue and further margin growth in the coming years.”

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Hero sells its French fruit-compote business

Hero today announced that it has signed an agreement with CIC-Banque de Vizille, majority owner of the French company Charles Faraud, to sell its French fruit-dessert business. The transaction will be completed at the beginning of September.

Charles Faraud is a specialist in fruit desserts and especially strong in the food-service channel in France. Acquiring Hero’s French compote business will give access to a stronger position in the French retail channel.

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Beech-Nut opens a new state-of-the-art baby food plant in the United States

Beech-Nut Nutrition Corporation hosted today the grand opening ceremony of its new 650,000-square-foot infant food production facility in the Town of Florida, NY. The facility represents a $124 million investment, the largest investment in any facility of the Hero group so far, and marks an important milestone for Beech-Nut in the United States.

The new facility employs approximately 500 associates and is also home to Hero’s North America headquarters and replaces Beech-Nut’s existing plants in Canajoharie and Fort Plain, NY.

Beech-Nut has filed an application to attain LEED (Leadership in Energy & Environmental Design) Certification, which would make it the first infant food production facility in the world and one of a few food processors in the United States to receive such a designation.

Stefan F. Heidenreich, Group Chief Executive, commented: “With this new state-of-the-art facility for Beech-Nut we will extend our already strong footprint in North America. It will not only enable us to build our market share but also enhances our mission of providing the most nutritional baby food products in the marketplace and being a trusted partner to mothers.”

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Schwartau sells its German Baking and Decoration business

Germany based Schwartauer Werke announced today that it has entered into a definitive agreement with the Dr. August Oetker Group to sell its Baking and Decoration Business. The transaction is subject to approval by the anti-trust authorities. Schwartau will continue to manufacture Baking and Decoration products for the buyer at the existing site in Bad Schwartau until 2012. The terms of the transaction have not been disclosed.

Going forward Schwartau will centre its resources on “Fruit” with its product groups Jam and Chilled Fruit as well as “Cereals” under the brand Corny.

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

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.”

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Abbott partners with Beech-Nut in the US

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."

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

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."

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2008 - Another strong year for Hero

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.”

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Hero and Ülker open new Jar Baby Food Factory in Turkey

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.

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