What is Sales and Marketing Strategy of Nomad Foods Company?

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What is the Sales and Marketing Strategy of Nomad Foods?

Nomad Foods is Europe's leading frozen food company. In 2024 and 2025, they significantly boosted advertising and promotion (A&P) spending to drive volume growth. This 'playing offense' approach highlights their strategy in a competitive market.

Nomad Foods, with brands like Birds Eye and Iglo, is focusing on innovation and brand renovation. They aim to adapt to modern consumer needs and maintain market leadership.

Nomad Foods' strategy involves increasing investment in advertising and promotion (A&P) to drive volume growth. This shift from a price-driven approach underscores their commitment to actively engaging consumers. The company is leveraging its established brands and focusing on innovation and brand renovation to adapt to evolving consumer preferences and maintain its market-leading position in the European frozen food sector. This strategic investment is crucial as the European frozen food market is projected to reach US$ 219.36 billion by 2032, with a CAGR of 4.9% from 2025. Understanding their approach to reaching customers and building brand awareness, including campaigns for products like Nomad Foods Porter's Five Forces Analysis, is key to grasping their market success.

Nomad Foods leverages a robust sales strategy that spans both established offline retail networks and a growing online presence across 17 European countries. Its primary distribution relies on major supermarkets and discount chains, ensuring widespread availability of its popular brands.

Offline Retail Dominance

The company's core sales channels are physical retail locations, including key players like Edeka, Lidl, and Aldi in major markets such as Germany, France, and the UK. This traditional approach is vital for reaching consumers who continue to rely on these outlets for their frozen food purchases.

Expanding Online Presence

Recognizing the shift in consumer behavior, Nomad Foods is increasingly focusing on digital adoption and e-commerce. This strategic move aims to capture growth in the online frozen food segment, driven by consumer demand for convenience and accessibility.

Navigating Retailer Dynamics

Managing inventory and relationships with retail partners is crucial for the Nomad Foods business model. The company experienced a 3.6% decline in organic sales in Q1 2025, partly due to retailer inventory destocking, highlighting the ongoing importance of these partnerships.

Sales Performance Insights

Despite challenges, Nomad Foods reported a positive retail sell-through of 0.2% in Q1 2025. The company anticipates that most destocking issues are now resolved, with the exception of the UK market, indicating a focus on stabilizing sales performance.

Key Sales Channel Elements

Nomad Foods' sales strategy is built on a dual approach, balancing the extensive reach of traditional retail with the growing opportunities in online channels. This comprehensive distribution network is fundamental to its market penetration.

• Strong partnerships with major European grocery retailers.
• Adaptation to increasing consumer preference for online grocery shopping.
• Focus on product availability and visibility across diverse retail formats.
• Strategic management of retailer inventory to optimize sell-through.

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Nomad Foods is significantly boosting its marketing efforts to drive growth, with a clear focus on increasing advertising and promotion (A&P) spend. This investment aims to build brand awareness, stimulate demand, and ultimately increase sales volume in the coming years.

Increased Marketing Investment

The company plans to increase its A&P spending faster than sales growth in 2024. This trend is expected to continue in 2025, following a 14% increase in A&P in 2023 and a 4% increase in 2024.

Digital Marketing Focus

Nomad Foods is strategically positioned to capitalize on the expanding online market for frozen foods. While specific digital channels are not detailed, the company is leveraging this growing consumer trend.

Data-Driven Promotions

A scientific approach is being applied to promotional activities to ensure optimal spending. This strategy aims to highlight the premium value of its brands, especially when compared to private label alternatives.

Innovation and Renovation

Product innovation and renovation are key marketing drivers, with expectations that innovation will contribute over 5% of sales in 2025. The company aims to double its renewal rate from high-single digits in 2024 to mid-to-high teens in 2025.

Commercial Flywheel Strategy

This comprehensive strategy integrates increased investments in advertising, innovation, renovation, and merchandising. The goal is to generate strong returns and build sustained momentum across its brand portfolio.

Market Positioning

The company emphasizes the premium value of its brands, a crucial element in its marketing plan. This positioning helps differentiate its products in a competitive market, particularly against private label offerings.

Nomad Foods' sales strategy is deeply intertwined with its marketing initiatives, forming a cohesive plan to achieve its growth objectives. The company's approach to the frozen food market is characterized by a commitment to enhancing brand perception and driving consumer engagement through a combination of increased advertising, product development, and smart promotional activities. Understanding the nuances of Marketing Strategy of Nomad Foods provides insight into how the company navigates the competitive landscape and aims for sustained success.

Key Marketing Elements

Nomad Foods' marketing plan is built on several core pillars designed to foster growth and strengthen its market position. These elements work in concert to support the overall Nomad Foods sales strategy.

• Increased A&P Investment: A deliberate strategy to outpace sales growth with marketing spend, aiming for 14% A&P in 2024 and higher in 2025.
• Digital Engagement: Leveraging the growing online frozen food market through unspecified digital tactics.
• Data-Driven Promotions: Employing a scientific approach to optimize marketing spend and emphasize brand value.
• Product Innovation & Renovation: Driving sales through new and improved products, with innovation expected to exceed 5% of sales in 2025 and a target renewal rate of mid-to-high teens.
• Commercial Flywheel: An integrated approach combining advertising, innovation, renovation, and merchandising for synergistic returns.
• Premium Brand Messaging: Highlighting the superior value of its brands, especially in contrast to private label options.

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Nomad Foods positions itself as a provider of convenient, high-quality, and nutritious frozen foods, leveraging the established heritage of its well-known brands. The company actively promotes the 'goodness of frozen food,' highlighting its nutritional benefits, taste, quality, ability to minimize food waste, and overall convenience and affordability.

Heritage and Quality Focus

Nomad Foods builds its brand on the legacy of iconic brands, emphasizing a commitment to delivering high-quality frozen food products. This approach aims to instill consumer trust and preference.

Nutritional Value and Convenience

The company champions the nutritional advantages of frozen foods, alongside their inherent convenience and affordability. This messaging targets consumers seeking healthy, easy meal solutions.

Sustainability as a Differentiator

Sustainability is a core element of Nomad Foods' brand identity, positioning it as a leader in responsible sourcing within the frozen food sector. This commitment appeals to environmentally conscious consumers.

Health and Nutrition Recognition

The company's consistent high scores in health and nutrition indices underscore its dedication to providing wholesome food options. This reinforces its appeal to health-focused market segments.

Nomad Foods' brand positioning is deeply intertwined with its robust sustainability initiatives, a key pillar of its competitive advantage. The company is Europe's largest purchaser of certified wild-caught white fish, demonstrating a strong commitment to responsible sourcing practices. By the close of 2025, Nomad Foods aims to source 100% of its fish and seafood from sustainable fishing or responsible farming methods. In 2023, the company achieved a remarkable 99.5% of its fish and seafood volume certified by either the Marine Stewardship Council (MSC) or the Aquaculture Stewardship Council (ASC). This aligns with its broader target to source 100% of its vegetables, potatoes, fruit, and herbs through sustainable farming by the end of 2025. In 2023, 92.3% of its agricultural suppliers met a silver or higher score on the Sustainable Agriculture Initiative Platform (SAI Platform) Farm Sustainability Assessment. These efforts resonate strongly with consumers who increasingly prioritize sustainable choices in their purchasing decisions. Further solidifying its health-conscious appeal, Nomad Foods received a perfect 100% Health and Nutrition score on the Dow Jones Sustainability Europe Index for the fifth consecutive year. The company's overall brand messaging and visual identity consistently reflect this dedication to quality, convenience, and environmental responsibility, effectively engaging consumers who value both personal well-being and sustainable living. This commitment is a significant part of the Mission, Vision & Core Values of Nomad Foods.

Sustainable Sourcing Targets

Nomad Foods aims for 100% sustainable sourcing of fish, seafood, vegetables, potatoes, fruit, and herbs by the end of 2025. This demonstrates a forward-thinking approach to environmental stewardship.

Certified Volume Achieved

In 2023, 99.5% of fish and seafood volume was MSC or ASC certified, showcasing significant progress towards sustainability goals. This high percentage reflects a strong commitment to responsible practices.

Agricultural Supplier Standards

92.3% of agricultural suppliers achieved a silver or above score on the SAI Platform Farm Sustainability Assessment in 2023. This indicates a rigorous standard for sustainable farming practices across the supply chain.

Health and Nutrition Index

Achieving a 100% Health and Nutrition score on the Dow Jones Sustainability Europe Index for five consecutive years highlights the company's dedication to providing healthy food options.

Consumer Trend Alignment

The brand's emphasis on sustainability aligns with growing consumer demand for environmentally responsible products. This strategic positioning enhances market appeal.

Brand Messaging Consistency

Nomad Foods maintains a consistent message of quality, convenience, and environmental responsibility across all consumer touchpoints. This unified approach strengthens brand recognition and trust.

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Nomad Foods' sales and marketing strategy in 2024 and 2025 centers on a significant increase in brand investment to drive volume growth and market share. This proactive approach follows a period in 2023 where price increases boosted organic revenue, but volume declined by 9.5%.

Increased Advertising and Promotion

The company significantly ramped up advertising and promotional spending, with a nearly 30% increase in the final quarter of 2023. This investment is planned to accelerate further in 2024 and 2025 as part of its 'play offense' strategy.

Focus on Growth Platforms

Nomad Foods is concentrating on 'Must-Win Battles' and 'Growth Platforms' to maintain and expand market share. Innovation and product renovation are key to this strategy, aiming to revitalize its brand portfolio.

Product Innovation and Renovation

The company anticipates its renewal rate, the percentage of sales from new or refreshed products, to double from high-single digits in 2024 to mid-to-high teens in 2025. This indicates a robust pipeline of product launches, such as new chicken and potato offerings and a planned Goodfellas pizza launch.

Sustainability as a Communication Initiative

The release of its 'Appetite for a Better World' sustainability report in May 2024 serves as a significant communication effort. It highlights progress in sustainable sourcing and emissions reduction, reinforcing brand values and appealing to environmentally conscious consumers.

The overarching Nomad Foods sales strategy is to leverage increased marketing investment and product innovation to achieve accelerating volume growth and improve market share, which saw a positive inflection in the latter half of 2024. This approach is fundamental to its overall Nomad Foods growth strategy and its position within the competitive frozen food market.

Driving Volume Growth

The primary objective for 2024 and 2025 is to reverse the volume decline experienced in 2023. Increased marketing spend is directly aimed at stimulating consumer demand and driving unit sales.

Market Share Reacquisition

Nomad Foods is focused on regaining market share, with early signs of positive movement observed in the second half of 2024. This indicates the effectiveness of their renewed marketing efforts.

Innovation Pipeline

A strong pipeline of new and renovated products is crucial for the Nomad Foods business model. The expected doubling of the renewal rate by 2025 underscores the importance of product innovation in their marketing plan.

Brand Investment

The significant increase in advertising and promotional spending represents a core component of the Nomad Foods marketing strategy. This investment aims to enhance brand visibility and consumer engagement.

Strategic Focus Areas

The company identifies specific 'Must-Win Battles' and 'Growth Platforms' within its brand portfolio. This targeted approach ensures resources are allocated to areas with the highest potential for sales and market share gains.

Reinforcing Brand Values

Communicating sustainability efforts, as seen in the 'Appetite for a Better World' report, is integral to their brand messaging. This resonates with consumers and strengthens the overall Nomad Foods brand positioning.

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