14 Nov 2007


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Heinz urges convenience retailers to stock up on soup

Heinz

soups

Source : Heinz
Heinz is urging retailers in the convenience and impulse channel to stock up on soups this winter as its research reveals that with every 1 degree centigrade drop in temperature, soup sales can grow by +3%.

“Soups are incredibly popular in the winter months as shoppers want a quick and easy to prepare meal that keeps them warm when the temperature drops,” says Heinz Retail Execution Manager, Faye Kirkham. “Retailers should ensure they keep soup displays fully stocked to take full advantage of this increased demand.”

The research, from Heinz’s Grow Grocery think-tank, developed for the convenience and impulse channel, also revealed that 72% of soup shoppers tend to be on a main shopping mission and as a result spend 62% more than the average shopper.

“This just goes to show that grocery category shoppers are among the most lucrative coming through the doors of convenience and impulse stores,” continues Faye Kirkham. “These shoppers have the potential to grow sales across many categories – but only if what they originally came for is stocked – if not then they will go elsewhere.”

In the convenience channel, Ambient Soups are outgrowing the total Soups market across all channels, at +3.8. Within this Wet Ambient Soups account for 78.2% of sales with Dry Soups accounting for the remaining 21.8%. The Wet Ambient Soups market is in growth at +4.2% and is led by market leader, Heinz, which has a 72.1% share.

Despite shoppers spending more on grocery items, research from Heinz shows the grocery category is still a sleeping giant in the convenience and impulse channel that, if better merchandised, could attract up to twice as many shoppers (from 15% to 33% penetration). It is currently growing at +4%, but retailers need to do more to harness the growth potential of the category.

There are three simple steps that retailers can take to create the perfect grocery display, which will help them capitalise on shopper trends and grow their sales:

1. Stock the brands and products that are most popular with your customers. For example, Heinz soups are number two in the list of top twenty preferred bands that shoppers look for when in store.

2. Display them according to industry standard planograms, designed using the most up to date market data. For the soups category, allocate 16% of your grocery category space to soups.

3. Keep the display fully stocked by ensuring you have enough product to avoid out of stocks.

“The grocery category is still the backbone of any busy convenience store but retailers could still be missing out on 21 million sales per year through a lack of focus in the grocery aisle. Through the ‘Grow Grocery’ campaign, Heinz is committed to working with independent convenience retailers to ensure they are making the most of the hugely profitable grocery category,” said Faye Kirkham.

“We’re committed to supporting as many retailers as possible with this initiative. By combining Heinz’s category expertise with each retailer’s understanding of their own shoppers’ needs, we can grow the grocery category and enjoy the resulting rise in sales. It is an opportunity that is too big to be ignored.”

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