Canned goods 2024: Beanz bashed but NPD aids canned sales

Heinz Spaghetti Carbonara opened a can of worms in August. Chefs and Italian food purists raged against the new tinned product – the brand’s first pasta launch in a decade (see Top Launch, below). It was described by critics as “disgusting”, “catfood” and “a bastardisation” of a classic dish.

Plenty of shoppers, however, failed to take offence. “Our Spaghetti Carbonara sold out almost immediately on our website, and was the best-performing category SKU on the week of launch,” says Alessandra de Dreuille, Kraft Heinz meals director for northern Europe.

The NPD has proven a rare win for Heinz this year. Its baked beans have struggled to perform, losing 1.3% value and 0.6% of volumes. Its canned pasta, meanwhile, has suffered a 5.1% decline in both value and volumes. That’s on top of the hardships for the Heinz soup portfolio (see p169).

Higher prices have clearly played a part in these struggles. Heinz Beanz, for instance, are 7% costlier than the average price per kilo for brands. And branded baked beans are 142.2% pricier on average than own label.

At a time of high price sensitivity, those differences are important. So important, in fact, that private label has delivered a larger value gain than brands in five of the six sectors in this report.

Things could get worse for brands, warns NIQ retailer services team leader Lisa Rees. “The increasing development of own-label alternatives will have a direct impact on brand range size in retailers,” she says.

Plus, “continuing macro factors, including raw ingredient sourcing, packaging and transport/production costs, will further push on-shelf pricing”.

There are some glimmers of hope, however. “Brands that offer unique propositions and new recipes will be attractive,” Rees adds. Which likely explains the positive consumer response to Heinz Spaghetti Carbonara.

Further good news is that budget-conscious consumers will continue to shift from fresh to canned, which is both cheaper and has a longer life.

That shift can be seen in canned veg – one of the four sectors to grow volumes. It’s also the fastest grower in percentage value terms, up 9%. Top three brands Napolina, Green Giant and Mutti have all added value.

The gains for Napolina and Mutti aren’t surprising, given canned tomato brands have stayed ahead of the curve by providing “home cooks and customers with specific tomato variants”, Rees says.

In the case of Mutti – which has sold 2.4 million extra kilos, growing 46.1% in value and 44.2% in volumes – the recipe for success comprised advertising, boosting distribution and retaining consumer trust. So claims Louise Jobson, the brand’s UK head of category & shopper Marketing. “Mutti’s high shopper repeat rates show that once customers experience Mutti quality, they stick.”

The brand’s “focus on quality, taste, provenance, and simplicity resonates strongly with people seeking authenticity in their food choices”,  Jobson adds.

Bold sales for Bold Bean Co

Shoppers’ quest for authenticity is benefiting other brands in canned veg, too. Take premium challenger Bold Bean Co (whose products actually come in jars).

The brand has more than quadrupled value sales to £5.1m. Founder and CEO Amelia Christie-Miller attributes its success to the brand’s premium positioning. The September launch of a trio of gourmet baked beans is helping to maintain momentum.

“Our Baked Beans really struck a chord with our consumers,” she says. “Demand so far has been tremendous. Within 24 hours of its launch, we saw higher online sales than the same time period after our appearance on Dragons’ Den. And within the first month, we sold double our forecast in Ocado.

“We don’t see own label as a competitor because the focus is on commodity and price,” she adds. “Our competitors are other whole foods that take centre stage in a meal, such as pasta or tofu.”

Other canned categories have benefited from premiumisation, too. In fish, Ortiz el Velero – whose stylish packaging helps command higher-than-branded-average prices – has grown 18.5% in value. Rio Mare is another good-looker to enjoy a good year. Its 65% volume gain is thanks to Brits’ taste for tinned fish shifting to “superior taste, texture, and colour”, says Igor Viteznik, sales & marketing manager at owner Bolton Group UK.

No wonder Waitrose included “artisan pantry staples” like posh canned fish in its Food & Drink Report 2024 last month.

Read more: Canned goods 2023: On-trend fish cans still face falling sales