Heinz’s UK sales slumped last year as the food giant felt the squeeze on everything from inflation to GLP-1s.
Sales fell by 4.2% to £913m in the year to 27 December, primarily driven by a 3.8% decline in volumes, its latest accounts showed. It is the second consecutive year of falling sales.
Heinz is among a raft of major food companies struggling to hold onto customers as inflationary pressures and new weight-loss drugs drive shifts in behaviour.
While many affluent customers are becoming more health-conscious and moving away from foods with complex ingredient labels, lower-income shoppers are trading down to cheaper own-label products.
While the company is now turning to price cuts to try to win shoppers back, it has been unable to halt the decline.
In the UK, Heinz said despite the difficulties, investment in promotions and media helped it boost market share in its meals portfolio, expand its mayo presence, and deliver growth in its pasta sauces.
Heinz UK&I managing director
Added to investments in marketing and new employment costs, it meant pre-tax profits fell last year to £174m from £192m a year earlier.
Kraft Heinz CEO Steve Cahillane acknowledged earlier this year that Heinz’s brands have been under-invested globally for years, fuelling its loss of market share.
Cahillane announced a strategic shift in June that will see a pause on a planned split of the company and the focus instead turned to $600m of investments into its staple products.
”These results are reflective of the investments we made in 2025,” said Heinz UK&I managing director, Marta Pilczuk.
“As we look to grow beyond ketchup with Heinz, we’re encouraged by the improved performance we’re now seeing across all our core categories, including Heinz beans and pasta sauce, which continue to evolve alongside consumer tastes and trends.
”Industry headwinds remain challenging, but with the right growth levers in place, I’m confident in our ability to progress on the areas under our control, while mitigating for external factors.”
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