H. J. Heinz Bankruptcy
Yes, it's true, Henry John Heinz, Founder of H. J. Heinz Co., really did experience bankruptcy in 1875, yet went on to be one of the most successful condiment manufacturers in the world.
H. J. Heinz Company
Born in Pittsburgh, Pennsylvania, on October 11, 1844, Henry John Heinz, Founder of H. J. Heinz Co., began his business career by grating horseradish roots in his basement and selling it in glass jars door-to-door. He also took along surplus vegetables from the family's garden.
Unlike his competition in a day when most foods were sold in dark jars in order to hide their many impurities, Heinz made a very pure product, and to show this and inspire trust in his product, he used clear glass jars. Clear jars was just one of the many improvements Heinz brought to the food industry.
From Bankruptcy to Riches
The first Heinz factory was opened in Sharpsburg in 1869 with a friend, L. Clarence Noble. Appropriately named Heinz and Noble, the company went bankrupt in 1875, due to a surplus of crops that year.
Heinz recovered from the bankruptcy in 1876, just one year later, by raising capital and enlisting his brother and cousin in a new food firm named F and J Heinz. Although H. J. Heinz ran the company, the bankruptcy had made it illegal for him to own it. It was this year that Heinz introduced their now so famous ketchup.
Heinz Innovation
Leads to the First American International Food Distributors
Heinz used new technological developments like railroad refrigeration, steam pressure-cooking, and vacuum canning to introduce products like baked beans while at the same time increasing the production of other staple food stuffs. Henry Heinz continued his travels, always looking for new markets and opportunities to sell his products. In fact, during a trip to London in 1886, he stopped into Fortnum and Mason, a leading food company at the time, to demonstrate his products. Fornum and Mason promptly bought them all, making Henry Heinz one of the first American international packaged food distibutors.
The company became the H. J. Heinz Co. in 1888. In 1890 they developed the familiar keystone logo, for its home state of Pennsylvania, the octoganal shape, and screw cap for the ketchup bottle.
Master of Promotion
In addition to believing that the quality of his food was of greatest importance, Henry John Heinz was always a master of promotion. At the 1893 Chicago World's Fair (the Columbian Exposition), he was given an out-of-the-way spot for his exhibition. To increase interest, he came up with the pickle pin give away, which attracted huge crowds and has become one of the most famous promotional pieces in history.
In 1896, on a trip to New York, he saw an ad touting the great variety of shoes a certain shoe store had. Using that idea, he came up with the advertising slogan of "57 Varieties", although even at that time he was producing more varieties than that. Both ideas are still alive and well in the minds of Americans today, and are still used to represent the entire line of extremely successful food products.
The H. J. Heinz Legacy
H J Heinz was incorporated in 1905, and H. J. Heinz served as its first president, remaining in the position for the rest of his life. Under his tutelage, the company was noted for fair treatment of workers and for pioneering safe and sanitary food preparation. Heinz led a successful lobbying effort in favor of the Pure Food and Drug Act in 1906. He also was very involved working in his church's Sunday school and in various philanthropic endeavors, notably the Sarah Heinz settlement house in Pittsburgh, which he founded in 1894 and named after his wife.
Believing that people should be treated well, Heinz factory conditions were often better than the workers had at home. He was so proud of the cleanliness of his food factory that he invented the public factory tour. Heinz died on May 14, 1919, leaving his family to carry on the family traditions. Today, the H. J. Heinz Company is a worldwide company, encompassing the brand names of Heinz, Star-Kist, Ore-Ida, Weight Watchers, and many, many others.
His spirit of community and philanthropy was an example of greatest. Though he was involved in many areas, perhaps the best measure of his commitment is what he passed on to his children. His son, Howard, and his daughter-in-law Vira (wife of son Clifford), both began charitable trusts, which continue to this day as The Heinz Endowments.
His grandson, H. John Heinz III, went into public service and became a well-respected United States Senator. There were many people of influence pushing him to run for President when he was killed in a freak air crash in 1991. The family continues to carry on this tradition of community and caring, and stands as one of the best examples of how a person can go from bankruptcy to riches in the true spirit of community, philanthropy and the American way.
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