Heinz has reported a second consecutive year of declining sales, with revenues falling 4.2% to £913million and pre-tax profits dropping by £18million to £174million, according to the company's latest financial results. The Kraft Heinz-owned brand attributed the slump to a combination of cost-of-living pressures and the growing popularity of weight-loss drugs, which have shifted consumer habits.
Cost-of-Living and Health Trends Drive Sales Decline
The Grocer reported that lower-income shoppers are trading down to supermarket own-label products, while health-conscious consumers are moving towards pricier, fresher ingredients. This dual trend has hit Heinz's core ranges, including its iconic ketchup, baked beans, and pasta sauces.
Marta Pilczuk, managing director of Heinz UK&I, said: "These results are reflective of the investments we made in 2025. As we look to grow beyond ketchup with Heinz, we’re encouraged by the improved performance we’re now seeing across all our core categories, including Heinz beans and pasta sauce, which continue to evolve alongside consumer tastes and trends."
Company Response and Future Outlook
Pilczuk acknowledged that "industry headwinds remain challenging," but expressed confidence in Heinz's ability to adapt. "With the right growth levers in place, I’m confident in our ability to progress on the areas under our control, while mitigating for external factors," she added.
Heinz is expected to continue cutting prices across its product range to remain competitive. Despite the two-year decline, company officials described the results as "reflective" of ongoing investments to strengthen the brand across different food groups.
Broader Market Context
The sales slump is part of a wider trend affecting major supermarket brands, as inflation and changing consumer priorities reshape the grocery market. The Grocer noted that the rise of weight-loss drugs has reduced demand for calorie-dense processed foods, while own-label alternatives continue to gain market share among budget-conscious shoppers.
