Sauces, Dressings and Condiments in New Zealand

PROSPECTS

Strong growth continues

Sauces, dressings and condiments continued to exhibit strong value sales growth in 2018, consistent with the CAGR observed during the review period as a whole. Driving this was strong new product development activity across sauces, dressings and condiments in 2018, although more prevalent in categories such as pasta sauces, focusing on both health and wellness and premiumisation trends.

Pasta sauces is the strongest performer

Strong new product development activity in 2017 and 2018, focusing on premium segments, saw pasta sauces continue as the strongest performer in terms of value sales growth, although its growth in 2018 was slightly lower than in 2017. During the early stages of the review period, pasta sauces performed poorly, with little innovation observed and a weak value sales performance.

Unit price growth eases

Slight unit price growth was observed in 2018, and while this was comparable to the CAGR observed over the entire review period, it was less than that seen during the early stages of the review period. While premiumisation trends were prevalent and a driver of innovation in sauces, dressings and condiments in 2018, strong retail pressures placed downward pressure on unit price growth.

COMPETITIVE LANDSCAPE

Heinz Wattie’s acquires Cerebos Gregg’s

One of the more prominent developments to emerge within sauces, dressings and condiments in late 2017/early 2018 was the announcement that Heinz Wattie’s Ltd had received approval to purchase the food and instant coffee business of Cerebos Gregg’s Ltd. The impact of such a move will be particularly felt in sauces, dressings and condiments where Heinz Wattie’s ranks first and Cerebos Gregg’s third.

Heinz Wattie’s continues to lead sauces, dressings and condiments

Despite all the attention focused on the company’s acquisition of Cerebos Gregg’s Ltd, Heinz Wattie’s Ltd is projected to continue to lead sauces, dressings and condiments in 2018. Its value share lifted slightly over the course of the review period.

Private label penetration increases

Both Progressive Enterprises Ltd and Foodstuffs (NZ) Ltd have been in the process of implementing new private label strategies, with Progressive Enterprises completely overhauling its private label portfolio and Foodstuffs (NZ) undergoing a less comprehensive refreshment of its private label range. For Progressive Enterprises, this has seen mid-priced Countdown replace Select and Signature Range, while Essentials has replaced Homebrand in the economy segment.

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