Heinz chief hits out at price promos

Heinz chief commercial officer Matt Hill has hit out at supermarkets for “destroying category value” through steep price promotions.


 He says the “dramatic acceleration” of promotional activity across the supermarkets means that 40% of grocery sales now come from deals – up from 30% three years ago.

 “Retailers are driving footfall promotions that are incredibly deep, such as ’buy one get two free’, which while driving footfall is destroying category value,” he says.

 Hill adds that Heinz’s growth strategy centres on launching product innovations that grow the category, such as brand extensions which invite new users to the category, offer new benefits or create new uses.

 “Marketers are best focussed on what will grow the category. You look at [consumers] needs and how you can meet them better. If we do a better job of growing the category and meeting needs that the other guys, then we will grow our share too.”

 In the past year Heinz has launched variants such as lemon and black pepper Salad Cream and HP Sauce with Guinness and Balsamic Ketchup.

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