CUSTARD COLLAPSE

A FALL in custard sales hit Premier Foods as it blamed warm weather and lacklustre dessert sales for poor performance. The Mr Kipling maker saw sales fall 3.1pc in the 13 weeks to July 1, due in part to fewer consumers buying Ambrosia custard.

However, international sales rocketed 20pc, with Cadbury cake sales in Australia a major contributor.

A partnership with Japanese noodle-maker Nissin Foods resulted in more than £3m of retail sales.

The group, which also owns brands including Oxo and Batchelors, has recently been stung by the surging cost of commodities.