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News

UK: Mutti has expanded its international reach

15/01/2024 - François-Xavier Branthôme

Mutti announces UK subsidiary and senior appointments
Italian tomato processor Mutti has expanded its international reach with the launch of a new UK subsidiary, supported by a raft of senior appointments.
In an interview with La Stampa at the beginning of December, the CEO of the Mutti Group announced that 2024 would see the inauguration of a subsidiary branch in Great Britain, the group's sixth branch in foreign markets. The Parma-based company arrived on the British processed tomato market two years ago, and has become the country's number-two brand in 24 months.

Following a successful launch in the UK in 2020, the tomato products manufacturer is to set up shop in the UK from this month (January 2024). The UK will be the group's sixth subsidiary.
Newly appointed UK managing director Dhiresh Hirani will oversee the group's UK operations, reporting directly to international sales director Farid Tisselli.
Chief executive Francesco Mutti said the 'strategic move' reflected the group's confidence in the UK market and its determination to continue international growth.

Next phase of growth
Newly appointed UK Managing Director Dhiresh Hirani
Hirani said: "The next phase of growing Mutti in the UK involves our ambition to be the number one brand across all the categories we play in. We aim to premiumise the category, focusing on education, inspiration, and trading shoppers up.
"We want to continue to educate consumers about our quality tomatoes and our values to bring excitement and further reinvigorate a category that has historically been perceived as dull and boring. Working closely with our customers we will be elevating the overall shopper and consumer experience and in doing so drive category sales growth." Mutti is aiming for 30% sales growth this year in the UK; sales for 2023 are expected to come in at around Euro 20 million (USD 21.8 million), covering both retail and foodservice, in a market that Mutti first entered with a “soft launch” in 2015 through its distributor and sales agent RH Amar.

Senior appointments
The tinned tomato manufacturer also revealed three more senior appointments to help support Hirani's role as UK managing director.
Former Saputo Dairy UK head of sales growth channels Ian Hossack joins as head of retail UKP while Claire Thomas joins as head of category and insight UK from her previous role as head of category management at Quorn. Finally, Graham Phelan joins as marketing manager, having previously served as senior brand manager for consumer healthcare company Haleon.
”With our fantastic team in place, we're entering the next exciting phase of our journey and growth in the UK & Ireland - it's about building the brand and getting even closer to our customers and consumers”, Hirani added.
“We aim to build on the great success we have had to date and bring even bigger and better inspiration and premiumisation to the forefront, working collaboratively to elevate the category and maintain our momentum towards becoming the number one branded supplier across our key product categories in the UK."

Mutti: climate risks are a real issue for tomato cultivation
For the head of the Mutti family group, "the impact of climate change on agricultural production is getting less and less attention." "The government must intervene to defend and promote 'Made-in-Italy' products."

In his analysis, however, Francesco Mutti, CEO of the family business founded in 1899, goes beyond the "cautious and progressive growth path initiated in 2008" and looks at the relationship between agriculture, climate change and crop sustainability. "This year, the international tomato market has been at the center of considerable tension due to climatic changes that have affected harvests in some major producing countries. In the end, a balance has been found because processing tomatoes, unlike other agricultural raw materials, are relatively profitable, and farmers take their time before giving up on a crop due to a poor harvest. The problem, however, is that in other agri-food sectors, product availability is increasingly linked to climate change, but this emergency situation, which is worsening exponentially, is getting less and less attention, not only in Italy but worldwide."

Of course, there have been, and are, other emergencies – "first Covid, then the war between Russia and Ukraine, and now the conflict between Israel and Hamas, not to mention the inflationary surges" – but "to stop tackling the problem of climate change means not having the capacity to intervene in an increasingly precarious situation from which it is going to be more and more difficult to extricate ourselves."

In early December 2023, while waiting to see what would come out of the COP28 in Dubai, Mutti stressed the need "to intervene at the national level to improve the quality of ‘Made-in-Italy’ productions, bearing in mind that we cannot produce everything in the fields and that food self-sufficiency cannot be achieved." From his point of view, it is therefore necessary to "make strategic choices and produce the raw material that uniquely characterizes quality products from the agri-food sector."

But this is where the future lies. The Mutti Group's present situation is closely tied to the 2023 marketing year, which should close with earnings of nearly EUR 670 million, 55% of which are generated on foreign markets, but with "an Italian market that continues to grow". The year 2024 "will therefore be devoted to consolidating these positions, further strengthening the markets for new products, particularly ready-made sauces. It is precisely for this reason that in early 2023, we created a business unit dedicated exclusively to sauces and juices."

The company's ambitions reflect the changing consumer scenario of recent years and the requirements of consumers who, according to the company's experts, are increasingly looking for ready-to-use solutions, "but without giving up on products that are excellent in qualitative terms, providing recognizably typical Italian flavors." The CEO continued: "Our ready-made sauces are made exclusively with Mutti tomatoes, which are combined with top-quality products in a variety of recipes, from PDO basil from Genoa to PDO Parmigiano Reggiano to PGI red onion from Tropea. All strictly 100% plant-based."

From Mutti's point of view, "the most representative synthesis of these objectives and of the company's philosophy are the ready-to-use soups and especially the Mutti ragù, a 100% vegetable product based on yellow peas and without the use of soy, an allergenic ingredient." This new product is the result of two years of work, research and development, all aimed at reducing meat consumption; over 40% of Italians say they want to reduce their meat consumption, mainly for ethical and health reasons. "Throughout the company, we are focused on tomatoes: we don't use meat or fish." Francesco Mutti concluded: "So when we decided to produce ragù, we designed it to be 100% plant-based, a sustainable and delicious product that we think will convince everyone."

Some complementary data
Mutti senior appointments
Dhiresh Hirani, Mutti Managing director UK&I
• Formerly: Mutti UK country manager, November 2020 - January 2024
• Previous roles: Pladis account controller for Morrisons, United Biscuits account controller, Premier Foods account controller for Tesco;

Ian Hossack, Mutti head of retail UK
• Formerly: Saputo Dairy UK head of sales growth channels, June 2017 - June 2023
• Previous roles: Nomad Foods customer director, Kettle Food business manager for Asda and Morrisons, Unilever senior category manager;

Claire Thomas, Mutti head of category and insight UK
• Formerly: Quorn head of category management, May 2018 - January 2024
• Previous roles: Kerry Foods category controller, Manor Bakeries category manager, Campbell Soup Company customer marketing manager;

Graham Phelan, Mutti UK marketing manager
• Formerly: Haleon senior brand manager, July 2022 - January 2024
• Previous roles: Ali's Dream head of marketing, Pladis Global campaign manager, Ferrero assistant brand manager.

Sources: lastampa.it, foodmanufacture.co.uk

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