Pittsburgh, P.A. and St. Petersburg, Russia—H.J. Heinz Company has completed a transaction that will make Heinz a majority owner of Petrosoyuz, a Russian maker of ketchup, condiments and sauces, through the formation of a new joint venture company to market ketchup and other products in Russia and neighboring Eastern European nations.
“This joint venture agreement accelerates Heinz’s growth in Eastern Europe, now the largest market for ketchup and condiments in Europe,” says William R. Johnson, Chairman, President and CEO of the H.J. Heinz Company. “Heinz will have a clear majority stake in Petrosoyuz, a privately-held St. Petersburg-based food company that holds Russia’s number-one or number-two positions in mayonnaise, ketchup and margarine.”
Petrosoyuz has annual revenues of approximately $140 million, more than 2,000 employees and three manufacturing plants in St. Petersburg, Otradnoe and Ivanovo. Those factories and the Heinz baby food factory in Georgievsk will become part of the joint venture company.
“This joint venture with Heinz is a win-win for all parties involved,” says Mark Budyko, Principal of Petrosoyuz. “Heinz is an international player with a great track record for manufacturing and marketing world-class products. They offer resources, technical capabilities and commercial expertise, which will be combined with Petrosoyuz’s knowledge and understanding of the Russian market, to take our business to the next level. We see this agreement as a very positive step for our employees, our customers and all stakeholders.”