Heinz Finally Addresses The Strange Footage Captured At One Of Their Factories

Ketchup — the most universally beloved condiment — has had its share of controversies, and we're not talking about its serious staining power. See, the controversy, in particular, surrounds the most famous ketchup proprietor in the world — Heinz Company — which has had a wide variety of scandals from gross recipes to exploding bottles. But the biggest of them all occurred in 2016 when a shocking video revealed what really goes on inside one of their factories.

Ketchup and controversy

Though, controversy is an ingredient that goes back to the condiment's beginning. Believe it or not, when Henry J. Heinz first started throwing stuff into a vat and calling it a condiment, he had a much different recipe in mind, one involving mayonnaise, sour cream, and one very bitter root.

Heinz...horseradish?

Yep — the Heinz company that built its name on ketchup actually started out manufacturing horseradish. It was Heinz’s mother’s recipe, and he would make it in the basement of his old house. Unsurprisingly, however, the horseradish — no matter how tasty — simply wasn’t a best-seller.

"Catsup"

The company went under, and Heinz scrambled to come up with something else. A little sugar, garlic powder, tomato paste, and imagination later, and Heinz “Catsup” was born. But even from the beginning, even Heinz’s most loyal customers had no idea they were being lied to. 

Look at the label

At first, no one noticed the odd packaging on their favorite ketchup bottle. Suddenly, there was a way to unite even the pickiest of eaters, and all because of Heinz’s undeniably delicious recipe — what could be wrong? Well, no one ever thought to look closely at the label. 

A little exaggeration

About 20 years into the ketchup brand’s successful run, Heinz was on the train when he noticed something on a store passing by his window. The shoe store boasted having “21 styles” of shoes. The number grabbed Heinz’s attention, and inspired him to do a little exaggerating of his own.

57 varieties

That’s how Heinz’s iconic slogan “57 varieties” came to be. Back then, there weren’t nearly 57 varieties of Heinz ketchup to be found, just the one, perfect recipe. No one ever thought to ask about the other varieties boasted on the label because they were so happy with the original.

Classic glass bottles

As time passed, Heinz ketchup became a staple on kitchen tables all over the world, and not just at home. Heinz calls diners, chain restaurants, and fast food joints home, too, and in some places, you can even still find the classic glass bottles. Of course, these glass bottles are notorious for their one frustrating quality.

Wise packaging...

No matter how much ketchup is inside the bottle, it will take ages for it to pour out. Don’t be fooled — this isn’t a manufacturing error. Heinz ketchup wouldn’t be nearly as delectable if it were a watery liquid, which meant that Heinz had to package its ketchup very, very wisely…

Red magic time!

That’s where the “57 Varieties” slogan comes in handy. According to Heinz employees, the secret to achieving that perfect plop of ketchup is to tap firmly on the “57” label on the bottle’s neck. Mysterious packaging and frustrating manufacturing aren’t the only secrets Heinz has hidden from the public, however. 

Condiment debate

There are a few more secrets bubbling away in the sauce, and recently, Heinz has seen its fair share of controversies. For example, Heinz found themselves in the middle of a contentious condiment debate in 2018 when they asked what sounded like an innocent question online.

Hot-button issue

“Want #mayochup in stores? 500,000 votes for “yes” and we’ll release it to you saucy Americans,” Heinz tweeted. It wasn’t calling Americans “saucy” that was the issue here, but the proposed product itself. Apparently, the ketchup-mayo combo “mayochup” is actually a hot-button issue. 

Cultural appropriation

Heinz was accused of cultural appropriation when many Twitter users claimed that the “mayochup” recipe was actually invented years ago in Puerto Rico. “Too late Heinz,” one user commented. Meanwhile, one U.S. state claimed that they invented the controversial condiment.

No fry sauce slander

 “It’s Fry Sauce and I’m 160% sure it was invented in Utah,” one Twitter user wrote. “Get it right.” Wherever it came from, Heinz’s version hit shelves in 2018 regardless. Heinz didn’t seem to take the controversy all that seriously —after all, what could be worse than what happened in 2012?

"Simply" Heinz...

By then, Heinz had way more than just 57 varieties worldwide, one of their most popular being “Simply Heinz.” The only main difference between regular Heinz and Simply Heinz was that the latter contained pure sugar instead of corn syrup. It sounds simple enough…

Explosive results

But it was the simplicity of the recipe that peaked the interest of troublemakers. In 2012, a couple of scheming criminals tried to dupe customers by replacing the Simply Heinz ketchup with regular Heinz without changing the label (or the higher price), and the results were, well, explosive.

Boom!

Because the criminals had no clue how to correctly bottle ketchup, the bottles started to heat up in the unventilated warehouse. As the heat increased, so did the pressure, and before the criminals knew what was going on, the hundreds of fake Simply Heinz ketchup bottles burst, one by one.

Inside a Heinz factory

These bumbling criminals didn’t get away with it, but two people on the other side of the world almost did, if only they weren’t caught on camera. The worst part is, the footage was captured inside a Heinz factory, and what they were caught doing made people question whether or not they really wanted ketchup on their fries…

Rotten tomatoes

In a Heinz factory in Egypt, two workers were caught on camera tossing crate after crate of tomatoes into a huge vat. The problem? The tomatoes were brown, wrinkled, and rancid — obviously rotten. It didn’t take long for the gross footage to go viral online.

"Completely misleading"

Heinz’s response to the footage was also immediate, but what they had to say surprised some consumers. “The recent story concerning our tomato factory in Egypt was completely misleading and inaccurate,” they wrote, and the rest of their explanation was wild.

Something's up

“The edited footage shows an unreal picture and neglects the processing stages, hence gives the wrong impression,” one Heinz spokesman said. Though the company denied any rotten tomato usage, their business moves in the following weeks made people suspect that something was up. 

Destroying evidence?

Not only did Heinz Egypt never release a video showing the full ketchup-making process (as requested), but the managing director of the Egypt division was arrested. To make matters even stranger, two tons of sauce made with rotten tomatoes were destroyed before they were sent out for distribution.

Brand Loyalty

However, a few thousand rotten tomatoes couldn't keep the Heinz company down. Even with the bad press at their factory, the company has established the thing most brands dream of — an unflinchingly loyal customer base. People are still going to toss a few bottles of Heinz products in the cart, and that reliability is something many companies design marketing strategies around.

Questionable Practices

While Heinz has built a company that can withstand video proof of production scandals, Costco has achieved the same kind of brand loyalty by doing the unthinkable — selling chickens at a loss. At just $4.99, Costco's famous mouthwatering rotisserie chicken seems too good to be true, and it is. But just like the Heinz Company, the executives at Costco prefer that customers not look too deeply into the reasons why.

Famously cheap chicken

Since introducing their signature rotisserie chickens in 2009, Costco has continued to offer up the tender birds for the low price of $4.99. And plenty of those chickens are flying – although not literally! – out of the doors. We know this because a Costco boss spilled the beans.

60 million chickens a year

In a 2018 interview with NPR, Costco head of external affairs Jessica Kolterman revealed something astonishing. At that time, the big-box store was selling about 60 million chickens each year in the U.S. alone. That’s a whole lot of birds! And it means either the retail giant is missing a trick when it comes to profits – or it’s gone to extreme lengths to secure this price.

Cult following

But despite growing concern about the brand’s birds, they have become somewhat of a cult item. They even have their own Facebook page with over 18,000 followers! Not everyone is so smitten, though, and that could be because they know how Costco secures such a plentiful flow of chickens on demand.

Keeping the price low

It’s weird, too, that Costco is adamant about keeping the cost of its chicken down. Many members wouldn’t quibble about paying an extra dollar or two on top of that $4.99. We bet sales wouldn’t be much affected, either. So, could the whole thing be an error? And is it Costco that’s having to pay the price?

Integral item

As one of the largest retailers in the world, Costco has its price points all figured out. That means the low cost of the chicken definitely isn’t an error! It’s been carefully analyzed, and $4.99 is the amount the company is sticking at.

Bringing in regulars

Even more puzzlingly, as competitors have continued to gradually increase their prices, Costco hasn’t budged. And it’s this decision that hints at a darker truth. If Costco isn’t having to eat the cost of the chickens, who is?

Limited options

Obviously, Costco isn’t making all its profit through the chickens alone. How can it when the birds are so cheap? Maybe there’s something else that Costco is buying low and selling high to make up the shortfall. Maybe it’s the producers of that item who are paying the big price.

Startling disclosure

Well, you’d be surprised! According to Costco CFO and executive vice president Richard Galanti, there’s no secret weapon in the company’s arsenal. In fact, the store is losing a lot of money by selling the chickens. And we mean a lot of money.

Selling at a loss

It turns out that the rotisserie chickens have been setting Costco back somewhere between $30 and $40 million each year. And even after divulging this staggering sum, Galanti remained blasé about the company's decision to stick with its $4.99 price, saying, “That’s us, that’s what we do for a living.” But what exactly is it that they’re doing?

Suspicious philosophy

According to Galanti, the firm’s finance supremo, Costco has consistently been willing to “eat” close to $40 million in revenue. This is supposed to reflect the business’ commitment to good value for its customers. Sounds kind and caring, right? But there’s a sinister truth behind those cheap birds.

Crushing agriculture

In 2019 the non-profit Food & Water Watch left a scathing review of the retailer’s controversial approach. In an article on its website, the group claimed, “Costco has been plotting to... wreak havoc on Midwest agriculture so they can keep their hot ticket item cheap.” Pretty bold statement!

Exploitive operation

Food & Water Watch essentially suggested that Costco is exploiting someone somewhere down the line. And it probably won’t surprise you to learn that remaining firm on that $4.99 price point could actually be benefiting the company.

Big risk, big reward

Let us explain! The scrumptious rotisserie chickens likely work as a lure for customers – or a ‘loss leader.’ By keeping the rock-bottom price artificially low, the highly popular chicken is guaranteed to be in hot demand. And luckily for Costco, that risky move seems to be paying off. According to figures in a 2014 edition of The Seattle Times, sales come in at close to one bird each for every one of the 78.7 million Costco members. 

Sneaky tactic

And by setting itself apart from its competitors by pricing low, Costco guarantees a higher footfall in its stores. So, despite losing out on a few dollars per chicken, the company makes up for it with customers’ other purchases once they’ve stepped through the doors. Makes sense, right? How many times have you gone into a supermarket with just one thing in mind, only to be enticed into buying more than you needed?

Buying more

It’s the same deal with the chickens. By placing the coveted birds at the very back, Costco hopes that consumers will be tempted by other products along the way. But this merely scratches the surface of the company’s sneaky tactics.  

Injecting the birds

Take the taste of Costco’s chicken, for example. It’s not bland, meaning the company must have some special flavoring secret at its disposal. But as this costs money Costco doesn’t have, what gives? Well, the answer lies with an injection that takes place before the birds have even made it to store.

Salt shot

Each bird is pumped with 460 milligrams of salty liquid. That’s close to a third of your recommended daily intake of sodium, according to the American Heart Association. Yup, if you’re partial to eating a chicken all by yourself, you may find yourself over the salt limit. And that makes us wonder what else Costco is willing to disregard to turn a profit.

Market change

The real secret? Costco’s had to make a controversial business move to sell its popular chickens. You see, according to the USDA, the number of whole birds sold has fallen from 50 percent in the 1980s to just 15 percent today. And so to get the amount of chicken it needs, the big-box store has had to take things into its own hands.

Back to the drawing board

Over the last 50 years, birds have been bred larger and larger to supply the growing appetite for portioned cuts of meat. Unfortunately for Costco, though, these chickens aren’t a good fit for the rotisserie. And with the global supply chain no longer an option, the wholesaler had to return to the drawing board. Its approach has caused a real furor, too.

Massive investment

Basically, Costco needed to think fast and think big. And its solution to not compromising on price was this: an entirely new company, a total overhaul of its business model, and a staggering $450 million investment. Not dramatic at all!

Farmers fight back

In order to maintain an ample stock of chickens that were all the right size, Costco decided to monopolize the chicken production process – right down to the hatching of the eggs. The monumental business venture came to life in Fremont, Nebraska, and it didn’t materialize without backlash from the local community, who have proudly farmed the area for generations.

Imposing giant

Ultimately, this business was set to provide a staggering 40 percent of Costco’s annual chicken supply. That’s about 100 million chickens every year! And the threat of such an imposing plant – all 400,000 square feet of it – was certainly felt by the people living nearby.

Rising skepticism

The company formed to deal with Costco’s mammoth move into farming, Lincoln Premium Poultry, had its potential sites positioned on the border of Iowa and Nebraska. But that’s a place already brimming with factory farms. As of August 2018, in excess of 10,000 of these facilities were already functioning in the area. No wonder the locals fought back.

Terrible smell

Ruth June had relocated to Nebraska in 1962 with her late husband Bob, and she had always loved the peace in her neck of the woods. In a 2018 interview with Nebraska Public Media, she said, “This is a nice, quiet neighborhood. Nice people. Everybody gets along.” Until Costco got involved, that is. She predicted, “Now, we’re going to be shut up in our houses because we can’t stand the smell outside?” Fair point.

Tone-deaf response

And Kolterman didn’t do much to dispel Ruth’s concerns about lingering odors, “I’m not going to sit here and tell you you’re never going to have a smell in the course of this operation. It’s a farm... That’s just the nature of agriculture,” the Costco boss replied. But a bad stench in the air isn’t the worst issue.

Pollution concerns

There’s the environmental impact to consider, too. Randy Rupper was part of the local group Nebraska Communities United, and he was concerned about the grim reality of all that manure. In 2018 he claimed that “millions of pounds” of the stuff would cover the surrounding fields. Unfortunately, manure means chemicals, which equals a whole lot of nitrogen and phosphorus making its way into local waterways. And that’s very bad news.

Toxic runoff

It’s all known as farm runoff, and it’s usually caused by rainfall or irrigation. On farms, though, there are potassium or nitrogen from fertilizers, pesticides, and even certain metals. And you may have already guessed what can happen when these chemicals enter our water sources.

Contaminated water

Yep, you guessed it – pollution. And it’s one reason why Food & Water Watch was particularly opposed to Costco’s mammoth new plant. According to the non-profit, the area was already crippled by what it described as “severe pollution” from intense industrial agriculture in the Midwest. Apparently, over 1,000 miles of streams and rivers had already been harmed as a direct result of factory farming. But it doesn’t end there.

Damaging local habitats

The adverse effects of farm runoff have also been seen at several state park beaches. Food & Water Watch found that in 2017, the advice at 37 bathing spots was 'Swimming Not Recommended.' And according to the National Water Quality Inventory, this form of pollution was one of the leading causes of contaminated water in 2000. Worryingly, this is still true more than 20 years later.

Dangerous drinking water

But it’s simple, right? Just don’t swim in those waters, and all will be okay. Not quite. Iowa – which is right next to Costco’s sprawling new poultry facility – has already felt the effects of factory farming on its drinking water supply.

Disturbing data

The Des Moines Water Works is Iowa’s largest facility for treating drinking water, and it’s revealed the disturbing effects of industrial-scale farming on the surrounding community. In 2015 nitrate pollution surpassed federal limits in 11 of the state’s water supplies. And in certain conditions, that can be extremely dangerous. It’s no wonder that Nebraskans feared the effects of mass farming in their own region.

Alarming links

Due to the volatile way that nitrates can react once they’ve been ingested, this type of water pollution has been linked with certain birth defects and certain types of cancer. But for the citizens of Fremont, that wasn’t the only bone they had to pick with Costco.

Wooing the locals

Costco’s choice of location for its state-of-the-art poultry farm wasn’t made by sheer chance. The company knew that Nebraska is one of the U.S.’ biggest farming states. And for its new business to prosper, the huge chain would have to get the local farmers on side. 

Exploitation concerns

Seeing as one in four jobs in Nebraska are agricultural, this shouldn’t have been too hard a task. But while Costco was offering 15-year contracts to participating farmers, there were still widespread concerns that they would be exploited by the mega-firm. Basically, these deals could trap folks in an unfavorable position.

Risky commitment

A young farmer in the area, Marshall Lutjens, raised a concern that was shared by many. In 2018 he told NPR, “My biggest thing is if something ever happened to the company, who's going to fill the barns? Because you're putting a lot of money down for barns.” In other words, should any unforeseen circumstances crop up, there would be little to no compensation offered to the farmers. And with the livelihoods of so many farmers hanging in the balance, it’s clear that Costco’s low prices really do come at a cost.

Generational occupation

These honest, hard-working folks could be left high and dry – and it would make barely a dent in Costco’s profit margins. But there’s a more obvious threat posed by the intruding company. And it’s all to do with Nebraska’s time-honored farming system of family ownership.

Absentee ownership

Here’s the deal. After the Costco project was launched, a North Carolina investor applied for ownership of a staggering 132 chicken houses. A generous investment, right? Seems great. The only issue is that North Carolina is more than a thousand miles away from Nebraska. And locals are concerned about these absentee owners for good reason.

Being pushed out

Andrew Tonnies lives in Dodge County, and he was worried that people investing from out of state would be less likely to have the best interests of the community at heart. In 2019 he told the website Food and Power, “These people coming in… are they just interested in the economics of extraction?” And he has a point. Before the plant was even being built, local farmers were reportedly already being pushed out of their right to farm ownership by wealthy folks with their eyes on the prize.

The true cost

So it seems the true cost of Costco’s rotisserie chickens is a far cry from their bargain price tag. Only time will tell whether the farmers involved in the project will be exploited, or whether the local landscape will be drastically impacted by pollution. For now, though, let’s take Lincoln Premium Poultry at its word and hope it will stick to its seemingly sound code of ethics.