The secret ingredient

What was behind the decision to build a new R&D facility?

A big part of it was that we really wanted to create more synergy in our European operations. Previously, our R&D facilities were either regionally or nationally based, usually at a production location. The centre in Nijmegen is much larger; staff from all over Europe will be able to work and collaborate together, with all the facilities they need at their disposal.

So there's been a big change in your R&D processes?

Absolutely. In the past, our projects would have been conducted by locally based R&D personnel. Now our European R&D efforts are all concentrated in one centre, so we can have a variety of people working across them. Over 15 nationalities ensure we keep in touch with local preferences and insights, and we have local implementation managers. Nobody has an assigned desk and there are no offices here; it's one big open area where people are encouraged to mix and work together on challenges, to sit in new areas and meet others they haven't met before and wouldn't have come across in a more conventional workspace.

It also means that all sorts of different employee expertise can be pooled. In a project team you might have some people from the UK who have grown up with certain products like tomato soup or baked beans. They will have an excellent understanding of these foods, not only from a company perspective, but also as consumers. You need these people within the larger group of product developers, as well as those who bring a more generalised perspective, so it's a sort of micro and macro view combined. That's the key to creating successful products, and that's what the new facility provides.

What sort of impact will the new facility have on Heinz products?

I believe it will lead to a significant increase in quality; better innovation means superior products, and we can put a lot more resources into individual projects. Speed to market will also be improved, though that's not really the focus. We want to come up with exciting new products that delight our customers - that's not something you do every week.

In future, it will also mean we can take more of a European rather than a local approach to product development. Things that we design for one market, for example, will be more easily transferable to another one.

Why did Heinz choose Nijmegen as a location?

We already had a strong connection to Nijmegen through the Honig factory. The Elst factory, our European ketchup-manufacturing facility, is also relatively nearby.

The other benefits of Nijmegen are that it's at the heart of the Dutch food and health valley, a globally recognised food research development site, and it has an excellent reputation for living standards. So, all in all, it really made a lot of sense to locate the facility here.

Could you share with us some details about the facility?

There's only one centre that is comparable to this within Heinz, and that's the US innovation centre, close to our headquarters in Pittsburgh.

The new facility has 8,300m2 of floor space, and the potential to house 200-300 employees; there are 170 here already. It's also extremely modern, both in terms of the open and spacious layout, and the new packaging, microbiological, analytical and instrumental labs, all of which are filled with state-of-the-art equipment.

Flexibility has really been at the heart of the design process. That's a really important point for us; it means we'll be able to stay at the forefront of innovative technology.

We've also included new labs for sensory research, which is vital for a thorough understanding of consumer tastes. These new facilities have testing booths and meeting rooms for our expert panels, as well as observational platforms so that we can watch and learn from consumers' reactions when we cook with them; specifically, what they do and how they work.

What other qualities contribute to a successful R&D facility?

Employee quality is integral. You need good people with strong research skills who are also excellent packaging process and product developers. It's also very important to provide a working environment that employees feel positive about; that means access to top quality facilities and a stimulating layout.

Doesn't technology play an important part as well?

It certainly does. New technologies typically have a very long lead time; it can be three to four years before they can be applied to consumer products. So in order to keep ahead of the trend, we dedicate a substantial proportion of our resources to technological advancement. The whole process is much easier here because there are more people available to help push these projects forward.

What sort of R&D challenges are you facing at the moment?

All fast-moving consumer goods companies are facing challenges with salt and sugar reduction.

There's also been a trend towards more general energy reduction which we expect to continue over the next few years, although within this field, sugar is definitely the most significant. From the outside, it may seem easy enough to resolve; why not just take some out? However, if you want to maintain the same taste you need to find suitable alternatives. And not only that, those alternatives need to be natural. That really is an important point for us - Heinz ketchup has never used preservatives for added shelf life, whereas a lot of other products do.

Finding natural alternatives to preservatives has led to a number of close collaborations between ourselves, universities and other research institutes. It's also meant cultivating relationships with our key suppliers, which is something we've been doing for a number of years now. They have an intimate knowledge of product ingredients, and we believe that working with them is a viable model for future product development.

So sugar and salt reduction, along with finding natural alternatives, are playing a central role in guiding our product development strategies. They must of course be balanced with our other goals; great taste and value.

Will these challenges be the same in years to come?

The food market has always been relatively slow to change; if you were to walk though a supermarket 50 years ago, you'd recognise the vast majority of the products. The same cannot be said for a number of other industries - electronics, for example.

That means that the changes - and therefore the new challenges - will most likely come in the details of the food, rather than the actual products. Packaging is a particularly interesting area. It looks as though it will be targeted at more specific age groups, especially the elderly population. They have very specific needs: larger fonts for the ingredients list, foods that are easier to open or prepare, and smaller portions. The other big change to look forward to is a renewed emphasis on sustainability, particularly the use of recycled materials.