Heinz’s UK sales finally appear to be stabilising after shoppers abandoned the US food giant in their droves through the cost of living crisis.
Heinz’s volumes fell almost 20% through 2022 and 2023 as shoppers turned to own-label ketchups and beans to save money amid skyrocketing inflation.
The US company has invested heavily in lowering prices since the second half of 2023 and has managed to stem the loss of customers as a result.
Its UK revenue fell by 1.5% to £953m in the 12 months to 28 December 2024, a drop largely fuelled by lower prices, with volumes declining just 0.3%. However, Heinz had forecast in its previous results it would return to volume growth in 2024.
Heinz said the decline was partly due to some “strong competition” in beans and sauces.
Meanwhile, its pre-tax profits surged to £191.9m from £104.1m the year before, an increase Heinz attributed to “operational savings in procurement and general cost reductions”.
The increase is against a favourable comparative in 2023, when Heinz opted to write off almost £50m, bringing its profits down by 35%. Compared with 2022, profits were up by 19% in 2024.
Heinz cut £12m from its employment costs last year, according to its accounts, a reduction driven by a reduction in staff numbers, which fell by 19.
The business has rolled out several new products in the past 12 months as it looks to tempt shoppers back to its branded foods. They include a collaboration with Ginsters on a co-branded ‘Beanz & Cheese Slice’, and no-added-sugar-or-salt tomato ketchup.
“Our 2024 performance was driven by insight-led innovation across sauces and meals, as well as reinvestment in marketing and promotional activity, which saw Heinz return to TV,” said a spokesperson.
Earlier this month, Kraft Heinz announced its was splitting up the business a decade after it was created in a mega-merger. CEO Carlos Abrams-Rivera said the “complexity that we have in the business today has been hampering” performance.
In January, Heinz named Marta Pilczuk as its new head of UK and Ireland after northern Europe chief Jojo Lins de Noronha left the business. Pilczuk moved over from the equivalent role at Kraft Heinz Poland.
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