Value is the new sauce of inspiration

It’s hard to maintain growth in a high-penetration category like table sauces and condiments, but both top brands have managed it.

Heinz tomato ketchup has turned around a 0.1% slip in sales last year to post sector-beating 4.7% growth, albeit at the expense of volumes, which slumped by about the same amount, suggesting some shoppers found the 10.1% hike in average price hard to swallow [Nielsen 52 w/e 12 October].

While the surge in price is partly down to the roll out of premium NPD such as Balsamic Vinegar ketchup in late 2012, it also reflects an 11% decline in deal activity – a picture echoed at category level, with a flurry of new launches coinciding with a 6% fall in deals.

The attempt to replace volume-driving tactics with value-added innovation is starting to pay off, with value growth up on last year and the volume decline half what it was.

“Half of all growth in the category (£8.6m out of £15.2m) has come from products launched in the last year,” adds Nielsen analyst Tom D’Angelo.

NPD continues to focus on spicier flavours. “At Heinz, we’ve seen consumer preference shifting towards more adventurous and exotic flavoured sauces”, says a spokeswoman, pointing to the addition of Mexican Chilli and Sweet Chilli to the Heinz Chilli Ketchup range in March.

Traditional brands such as Heinz face mounting competition from ethnic table sauce brands such as Nando’s, Encona and Blue Dragon, though, which are all in value and volume growth, although the party may be over for Levi Roots Reggae Reggae Sauce, down 10.1% on volumes down 17%.

It’s been a mixed year for condiments. Although the decline in volume sales was less pronounced than last year, value growth was too, with leading brand Branston’s growth less than half what it was in 2012.

Read The Grocer’s full Top Products Survey.