Food and Beverage Business

Mutti’s New UK Subsidiary Aims for 30% Growth in Ambient Tomatoes and Pasta Sauce Market

Mutti's New UK Subsidiary Aims for 30% Growth in Ambient Tomatoes and Pasta Sauce Market Shelf-stable Food and Beverage Business

Mutti, a family-owned premium Italian tomato business, is looking to achieve a 30% surge in sales this year in the UK, where the company has recently established a subsidiary. Dhiresh Hirani, Mutti’s new managing director for the UK and Ireland, is focused on accelerating growth in ambient tomatoes and pasta sauces. The company is also considering expanding into other products such as ketchup, ready-made sauces, and soups in the future.

According to Hirani, the company initially entered the UK market in 2015 through its distributor RH Amar. It spent the initial years gauging consumer reception to premiumization before making significant investments in people, advertising, and a TV campaign in 2020. The new UK subsidiary, which launches this month, will manage key customer and category conversations with key retailers. Despite the launch of the subsidiary, Mutti has no immediate plans to establish a manufacturing base in the UK.

Mutti currently holds an 8% share of the UK ambient tomatoes market at retail and has listings with all major supermarket chains. The company’s sales within the out-of-home channel are expected to generate approximately €4m in sales, contributing about 20% of the group’s total sales in the country. Hirani emphasizes that the primary focus for Mutti in the UK is “brand building” and increasing distribution in ambient tomatoes and pasta sauce at the retail level before introducing other products from Italy.

The company plans to bring some hidden gems from its product portfolio to the UK market, including expanding its ketchup offering beyond Asda. Mutti seeks to position itself as an affordable luxury, aiming to elevate the experience of creating restaurant-style meals at home with premium quality ingredients. The brand’s quality and sustainability values are top priorities, and it aspires to educate and inspire shoppers to cook with good ingredients.

The UK subsidiary’s long-term strategy includes exploring possibilities for manufacturing in the country within the next three to four years, subject to successful operations. The company views the foodservice segment as a source of growth momentum and is committed to differentiating itself from competitors by delivering superior quality products.

Mutti’s mission aligns with the current consumer trend of seeking high-quality ingredients and sustainable options for cooking at home. With a strong focus on the UK market, the company’s efforts to offer premium products and educate consumers about good ingredients are projected to drive continued sales growth.

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