Heinz Given Shareholder Growth Plan

PITTSBURGH — H.J. Heinz Co. received a proposed growth strategy Tuesday from a group of shareholders led by billionaire investor Nelson Peltz, who has sought to pressure the food maker into boosting returns.

Investment firms Trian Fund Management and Sandell Asset Management Group outlined the proposal in a filing with the Securities and Exchange Commission. They own about 5.4% of the company’s stock.

Their idea calls for the Pittsburgh-based company to cut annual costs by $575 million and reduce deals, allowances and other incentives to retailers by at least $300 million. It also recommends a stronger focus on core brands and international markets, returning capital through share repurchases and higher long-term dividends.

The filing said Heinz is one of the world’s most valuable brands, but that the company’s shareholder returns have lagged behind the market since the current management team took over in 1998.

“The company’s board should establish a strategic vision that puts an end to the frantic activity of divestitures, acquisitions and restructurings that have been so damaging over the last eight years,” it said.

Shares of Heinz rose $2.05 to $42.98.