Heinz heralds its UK growth as sign that ‘brands can thrive’

Global food giant Heinz has singled out the UK as an area of "outstanding" ­performance as it unveiled a 15% jump in sales for the first quarter.

Heinz said the 4.9% sales increase in Europe for the three months to 27 July was largely led by its ­success in the UK.

Sales were up 2.2% by volume in Europe and the company secured a 2.7% ­increase in prices.

The price increases come amid intense price promotional activity in stores, with suppliers facing serious pressure from supermarkets trying to keep a lid on soaring food price inflation.

Heinz's UK sales force had managed to buck the trend and sell more of its products at their full price, said Heinz CFO Art Winkleblack. "Meals and value shares are growing, showing that premium brands can thrive in a difficult economy," he said.

Winkleblack added that he was confident launches in the UK would further boost sales, citing the company's Squeeze & Stir soups and Pasta Pouches.

Heinz reported a 15% increase in first-quarter sales to $2.85bn with strong growth in emerging markets, although net profits fell 6% to $226.1m due to restructuring charges.