Are Heinz prices going up? Will there be a baked beans and ketchup price increase in 2023 - and by how much

The prices of Heinz Baked Beans and Heinz Ketchup look set to rise in 2023 despite the ongoing cost of living crisis, the brand’s parent company Kraft Heinz has warned.

In its latest results for the final quarter of 2022, the company reported an increase in revenues but a decrease in the amount of product it sold, having had to pump up prices to keep pace with higher costs. It said it has been hit by rising prices for some of its key ‘inputs’ - like ingredients and energy. This issue is likely to be down to the war in Ukraine.

Research by consumer watchdog Which? published in November 2022 found the price of Heinz’s core Ketchup product had increased 53% since 2020. Its move to raise prices in light of higher costs saw the brand become embroiled in a bitter dispute with supermarket chain Tesco last summer - an event that saw Heinz products temporarily disappear from Tesco’s stores.

It all comes as the UK inflation rate fell back marginally to 10.1% in January 2023 thanks in large part to lower price growth for petrol and air fares. The latest inflation statistics from the ONS showed the rate of food price increases remained flat for the first time in more than 12 months - although NationalWorld has found supermarkets have continued to hike the prices of some value range items.

So, why could Heinz products become more expensive in 2023? Here’s what you need to know.

What has Kraft Heinz said?

Kraft Heinz - the international food company that owns the Heinz brand - announced its financial results for the fourth quarter of 2022 on Wednesday (15 February). It also gave a first look at its full calendar year results as well as its outlook for 2023.

What the document reveals is that the company believes it is set for a slower rate of sales growth over the next 12 months, as well as challenges in boosting its gross profit margin. It said it “anticipates high single-digit inflation for the year, with pricing and gross efficiencies contributing to adjusted gross profit margin recovery”. In other words, price rises are going to play a key role in its pursuit of greater profits.

Why could Heinz Beans get more expensive?

The reason why Kraft Heinz’s outlook is set to be bad news for Heinz devotees is its 2022 financial performance.

Internationally, the company saw its gross profits fall 6.5% from almost $8.7 billion to just over $8.1 billion off the back of a 1.7% increase in the amount of money it got from sales ($26.5 billion or £22.1 billion). The number of products it sold fell 3.4% across the year. The results mean its profit margin dropped from 33.3% to 30.7%.

In the results, Kraft Heinz CEO Miguel Patricio pointed to a “difficult operating environment, with record levels of inflation and supply chain disruptions”. In particular, the company made reference to higher costs for ingredients, including: dairy, meat, soybean, vegetable oils, energy and packaging.

However, it has not indicated how much more expensive its products could get over the coming year. Indeed, while inflation is expected to fall, major international events - like an escalation of the war in Ukraine - could send prices rocketing again.