Premier boost as Kipling mince pie sales exceed 200m
PREMIER Foods enjoyed a festive sales boost as customers bought more than 200m Mr Kipling mince pies over the Christmas period.
Sales at Premier, which also owns Bisto and Angel Delight, grew 2.6pc in the 13 weeks to Dec 28 compared with a year earlier. The firm was helped by demand for cakes and other sweet treats, which grew sales by 8pc. Mr Kipling alone generated growth of 10pc.
Premier Foods also launched a range of vegan grain pots as part of its new Plantastic brand and is preparing to roll out a vegan version of its Oxo beef stock cubes. Alex Whitehouse, chief executive, said: “Our biggest brand, Mr Kipling, has again been instrumental to this continuing momentum, with increased sales supported by TV advertising and new product ranges.”
Premier struggled overseas after one Ausstralian supermarket customer cut orders, causing international sales to slump 17pc. Mr Whitehouse said this was a temporary setback.
It is a crucial time for Premier, which is set to announce the results of a strategic review as it tries to pay off its £470m debt pile. Martin Deboo, analyst at Jefferies, said the strategic review suggested plans were afoot for a sale of part of the business: “There is as yet no resolution to the strategic review, which we view as code for the whole or partial sale of the business. We continue to welcome any solution that rescues shareholder value.”
Mr Whitehouse would not comment on a sale, but said the company hoped to provide an update by its full-year results in May. Last year Premier failed to attract enough bids for its Ambrosia brand. The company has struggled for direction since rejecting a 65p-a-share bid from US flavouring manufacturer Mccormick three years ago.
Premier shares closed down 2.3pc yesterday at 42p.