ShareThis Page

Heinz philanthropy won't change, despite new ownership

| Saturday, Feb. 16, 2013, 9:45 p.m.
Stephanie Strasburg | For the Tr
Heinz Field is hard to miss on the North Shore on Saturday, February 16, 2013. Stephanie Strasburg | Tribune-Review
Snow falls on Heinz Hall in downtown Pittsburgh on Friday, February 15, 2013. Andrew Russell | Tribune-Review
Snow falls on the Heinz lofts on the North Side on Friday, February 15, 2013. Andrew Russell | Tribune-Review
Snow falls on Heinz Hall in downtown Pittsburgh on Friday, February 15, 2013. Andrew Russell | Tribune-Review
The Senator John Heinz History Center is located in the Strip District.
Stephanie Strasburg | For the Tr
Heinz Field is hard to miss on the North Shore on Saturday, February 16, 2013. Stephanie Strasburg | Tribune-Review

The acquisition of H.J. Heinz Co. won't uproot the company from its Pittsburgh birthplace, but outside owners will now be guiding the storied ketchup maker, whose charitable largesse runs deep here.

What will that mean for philanthropy and long-standing family ties that have given name to public buildings such as the Steelers' home field?

Nothing, says Heinz and other local leaders.

“It's business as usual at Heinz,” company spokesman Michael Mullen said on Friday. “The agreement calls for ongoing philanthropic support of community initiatives and related programs, sponsorships and goodwill.”

Allegheny County Executive Rich Fitzgerald acknowledged that Heinz has played a critical role in providing local jobs and philanthropy. He said he expects the company will continue to be a good corporate citizen.

Heinz has been a “great community and corporate partner,” Fitzgerald said. “My sense is I don't think things will change.”

Heinz agreed to be taken private in a $28 billion deal on Thursday with billionaire Warren Buffett's Berkshire Hathaway Inc. and 3G Capital, a private-equity firm in Brazil that is controlled by another billionaire, investor Jorge Paulo Lemann.

The deal, which is expected to close in the third quarter, means that Heinz is giving up its more than 140 years of independence. But no one is betting that it will give up its local ties or close its pocketbook.

“The takeover, maybe, gives us opportunities that we don't have now. This is all so new that I don't know what those opportunities are,” said Luke Hingson, president of Brother's Brother Foundation, a North Side-based international relief organization.

Brother's Brother received $45,000 last year from the H.J. Heinz Company Foundation and has asked for $55,000 this year, Hingson said. And he isn't worried about losing that support under the new owners.

“We've received funds from Heinz, I'm going to say, for 30 years or longer,” Hingson said.

The H.J. Heinz Company Foundation contributed $12.8 million in 2010 and 2011 to charities across the country, company figures show. Local figures were not available.

Besides Brother's Brother, other local recipients include the Greater Pittsburgh Community Food Bank, the Extra Mile Education Foundation and Manchester Bidwell Corp.

Heinz's charitable contributions and its name are not the only things on the minds of the Pittsburgh community with the shift to deep-pocketed owners who lack local ties.

What about the headquarters and jobs?

After all, the city has been burned over the years as companies, especially after they lost their independence in buyouts, relocated elsewhere.

3G Capital managing partner Alex Behring said his firm and Berkshire Hathaway were “committed” to leaving Heinz headquarters in Pittsburgh and growing it.

Corporate icons that have left Pittsburgh in recent years include:

• Mellon Financial Corp., which merged with Bank of New York in 2006 and moved its headquarters to New York.

• Aluminum giant Alcoa Inc. did not merge but quietly moved its headquarters to New York in 2006.

• Freemarkets Inc., an online auction pioneer, was acquired by Ariba Inc. in 2005 and moved to Sunnyvale, Calif.

In the more distant past, Pittsburgh has lost such household names as Gulf Oil in 1984 and Rockwell International in 1988 to other cities.

“Berkshire has traditionally left the businesses it acquires on the path they're on and left them located where they are,” said Craig Wolfanger, president of Raptor Partners LLC, a financial advisory firm based Downtown.

Buffett's smorgasbord of companies under the Berkshire Hathaway label contains many household names, including:

• Burlington Northern Santa Fe, the railroad giant, bought for $26.7 billion in 2009.

• Geico, the insurance firm, bought for $2.3 billion in 1995.

• Mars, the candy maker, bought for $2.1 billion in 2008.

Among 3G Capital's company stakes is the fast-food chain Burger King Worldwide Inc.

“It would be really bad publicity if (Berkshire and 3G Capital) pulled up Heinz's 1,200 jobs in Pittsburgh and moved them elsewhere,” said Matthew Steve, senior associate at Strategic Advisors Inc. in Canonsburg.

Trib Total Media staff writerJason Cato contributed to this report.Staff writer Thomas Olson can be reachedat 412-320-7854 or

TribLIVE commenting policy

You are solely responsible for your comments and by using you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.