Green Giant's foray into soup its first venture outside canned vegetables has failed to live up to expectations, generating less than half of the expected £4m first-year sales.

The three-strong range of pouch soups, which hit shelves in August last year, clocked up just £1.4m in the year to 18 July 2009 [IRI]. The General Mills-owned brand had predicted that sales of the ambient pouch range, which was supported with a £2m push, would exceed £4m in its first year.

Sainsbury's has confirmed it has delisted the range and Nisa-Today's said it had recently reintroduced the soups after poor sales forced it to withdraw the lines in March.

A General Mills spokesman said the ambitious £4m target was based on high levels of trial and strong repeat rates. "However, trial has been slower than anticipated as we have been unable to secure the assumed levels of off-shelf promotional support," he said.

"Such support is key to the success of NPD as it interrupts shoppers from what can be autopilot purchase. The economic climate may also have been an additional limiting factor to trial, with shoppers less willing to switch brands."

Brand analyst Don Williams of Pi Global was unsurprised by the disappointing performance.

"The brand is so inextricably linked with one product that stretching away is never going to be easy. With Green Giant, the consumer primarily sees sweetcorn," he said.

However, General Mills said a recent promotion on the range in one multiple had resulted in sales of 200,000 units in the first four weeks of September [customer EpoS).

"This is a clear indicator that off-shelf display, combined with the right promotional mechanic, drives high levels of trial."

It has been a bad year for the entire pouched soup sector, which recorded a 34.9% drop in volume sales [Nielsen 52 w/e to 5 September].

Canned soup sales also struggled, down 5% compared with 7.6% growth for chilled soups [TNS 52 w/e 9 August 2009].

Focus on Soup

Topics