Thursday, August 27, 2009

"Heinz Looks Beyond the Supermarket Shelf"


Heinz has revealed that it is on the hunt for virgin retail territories to lessen its reliance on increasingly powerful supermarkets. Heinz UK and Ireland chief executive Dave Woodward has characterised these unexploited retail openings as 'white space' opportunities. His company's efforts reflect a wider trend of brands seeking out different ways to reach consumers. Supermarkets will continue to be the main route to market for FMCG products - 70% of Heinz's volume sales come from Morrisons, Tesco, Asda and Sainsbury's. However, the brand has also identified Wyevale Garden Centres as a suitable outlet for its barbecue sauces and Mothercare for selling its babyfood. It also plans to get more of its lines into service stations and convenience stores. These machinations come as Heinz finds itself rocked by consumer desertion of its brands in the wake of the downturn. Its share of the ketchup market, for example, has slipped to 74.7% in the four weeks to 11 July, compared with 79.9% during the same period in 2008, according to Nielsen. Similarly, Plum Baby, the premium babyfood producer, has signed a deal that will see its products being offered in IKEA cafes and at Luxury Family Hotels. The brand already has a presence on the Pizza Express menu.


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