Premier Foods prompted some frenzied promotional and marketing activity last November with the £5m launch of Branston baked beans. For the first time in two

years Heinz was forced to temporarily drop the price of baked beans in response to Branston's four-pack promotion, which slashed the price to just 99p.

And the media circus that accompanied the launch generated new consumer interest and helped reverse a 4% volume decline in the baked beans category.

Branston has exceeded all expectations and by February it had already secured a 10% market share - well ahead of its July target. This suggests Branston has the potential to be a formidable rival to Heinz.

Premier Foods general manager Martin Hall says: "The beans category has grown by 3.1% since the launch of the Branston line and the brand now has a 10.9% share of the £261m market."

According to Hall, Heinz's share of the beans category has dropped slightly to 71.5%. He adds: "Both Heinz and own label have suffered since the launch and Branston

continues to steal share of the market from both areas."

Heinz claims the impact has been minimal but retailers reckon that, if nothing else, the brand received a bit of a wake-up call.

Waitrose buyer for soups and vegetables James Hodgson says: "Heinz would say its market share was unaffected by the

emergence of Branston baked beans, but I would disagree. The launch did affect sales; Heinz probably didn't lose as much share as Branston gained but it would have suffered a decline in volume."

According to TNS, baked beans rose in value by 3.6% to £228m [52 w/e 18 June 2006] making it the third-largest category in the market. Growth has been largely driven by subsequent price increases introduced by the major players and the extension of Heinz's Mean Beanz brand. The widely publicised revelation about baked beans on toast being on the menu of Fifteen, Jamie

Oliver's east London restaurant, has also helped reinvigorate the market.

Simon Breckon, Heinz senior brand manager for Beanz, says: "Within baked beans, we always talk about growth and how this can be achieved in a market that has 90% penetration levels; it's about increasing the frequency of purchase. The main thing is to keep baked beans relevant."

According to Breckon, research from Heinz showed that eight out of ten consumers identified health and variety as of particular importance to them.

"Mean Beanz focuses on taste, health and convenience," he adds. "Heinz launched spicy flavours to increase choice and 50% of the subsequent sales were incremental, so it also brought new customers into the category. There will be more innovation and formats from Heinz, and some forthcoming brand extensions in both Mean Beanz and core brands."

HP baked beans has also made a comeback recently in the independent sector - under Heinz ownership - and Premier Foods intends to keep up the pressure with its own brand extensions.

Says Hall: "There is a lot more room for growth. Branston baked beans have already had an enormous effect, not just on beans but on the total category, and has helped grow the overall Branston brand.

"Following growing consumer demand for healthier products, Branston has launched reduced salt and sugar beans - Branston Healthy Baked Beans - and we will continue to respond to consumer trends."

The long-term outlook for baked beans is very promising. Mintel predicts the market will grow by more than 30% over the next five years, taking sales to £360m.n

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