Heinz to Merge Frozen Food Units, Cut Jobs

H.J. Heinz Co. said it will combine its Ore-Ida Foods and Weight Watchers frozen food units into a new company, Heinz Frozen Food Co., resulting in about 400 job cuts and a $150-million pretax charge. The world’s largest catsup maker said it will close a factory in Pennsylvania, cut production at a plant in Idaho and exit the pocket-sandwich business as part of the consolidation. Heinz named Neil Harrison president and chief executive of the new company, which will be based in Pittsburgh. Harrison assumed responsibility for both Ore-Ida and Weight Watchers on Oct. 1. The two businesses, which have total annual sales of $1 billion, have struggled amid slow growth in their product categories and competition from supermarket brands. Heinz said it expects the changes to generate about $32 million in annual savings, which will be fully realized by its fiscal 2001. Shares of Pittsburgh-based Heinz rose 69 cents to close at $59.25 on the New York Stock Exchange.