Overcast

Overcast

max temp: 16°C

min temp: 10°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

East Anglia: Premier Foods plans major relaunch for Mr Kipling cakes brand

10:13 22 July 2014

Premier Foods plans a major campaign to promote its Mr Kipling cakes brand.

Premier Foods plans a major campaign to promote its Mr Kipling cakes brand.

Archant

Cake brand Mr Kipling is to undergo a major relaunch and marketing push as owner Premier Foods plots its fight-back following a slide in half-year profits.

shares

Premier, which also owns Ambrosia desserts, Bisto gravy and Loyd Grossman sauces, has been hit by the impact of weak supermarket trading and warmer weather over the first six months of 2014.

Profits fell 16% to £17.8million in the period, with sales 6.1% lower at £364.4m due to the challenging market conditions and the company’s decision to eliminate “deep-cut, loss-making promotions”.

The company said it will double its marketing spend in the current half year as it gets behind the relaunch for Mr Kipling.

This will include a new packaging design, as well as a major television advertising campaign with prime-time slots alongside outdoor and social media.

The second half of the year will see a number of other product launches, including Bisto gravy and casserole pastes, Batchelors deli-box cous cous, Sharwood’s mini poppadoms and Cadbury sponge pudding desserts.

There will also be a first major television advertising campaign for Homepride sauces in ten years to support its recent packaging re-design and new flavours.

Price inflation in the company’s markets has fallen every month since the start of the year, with consumers switching away from traditional multiple retailers towards “hard” discounters selling 75%-90% private label products.

Premier said the ambient grocery market in the UK decreased in value by 1.3% in the first half of the year.

However it added that the most significant element of the market decline was caused by milder weather, with 20 of the 26 weeks in the first half recording higher average temperatures than their respective weeks in the prior year.

This impacted its Batchelors brand while Sharwood’s sales were also lower due to competitive pressures. Loyd Grossman sauces continued their good performance and Bisto grew both share and sales.

Mr Kipling increased its share of the cake market to 26%, helped by increased sales of its Snackpack slices.

Earlier this year, Premier hived off its Hovis operation into a joint venture with US private equity group Gores, cutting Premier’s stake in the bread business to 49%.

Restructuring of the Hovis business ahead of the joint venture deal included the closure of a depot at Mendlesham, near Stowmarket, with the loss of 45 jobs.

The group had also cut its debt pile through a series of disposals, including the Branston and Haywards pickles businesses based in Bury St Edmunds which were acquired in two separate deals by the Japanese group Mizkan in 2012.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Andrew Wheeler of Brewin Dolphin.

Andrew Wheeler, head of the Ipswich office of investment manager Brewin Dolphin, has hailed the firm’s “good progress”.

Thomson Airways' new Boeing 787 Dreamliner touching down at Stansted.

Stansted Airport today marked the arrival of the latest in airline technology with the launch of a new long-haul service from the Essex terminal.

'Love every drop' branding on an Anglian Water van.

Regional water and sewerage services group Anglian Water has announced an increase in underlying annual profits, following a year which marked the end of a five-year settlement with regulator Ofwat.

An LA Fitness gym.

Low-cost gym operator Pure Gym is to acquire mid-market rival LA Fitness, picking up 43 clubs for an undisclosed sum thought to be in the range of £60million to £80m.

Frank Brumby, eastern region chairman of R3.

East of England business victims of late payment saw more than one in six (16%) of their invoices paid late in the last six months, according to research by insolvency trade body R3.

B&Q parent Kingfisher said it was ploughing on with a shake-up plan

B&Q parent Kingfisher said today it was ploughing on with a shake-up plan “at pace” as it reported a first quarter slide in sales at the DIY chain.

Sarah Howard, president of Suffolk Chamber of Commerce, and Mark Pendlington, chairman of New Anglia Local Enterprise Partnership, at the celebration marking the first year of work by the New Anglia Growth Hub.

Supporters and staff from the New Anglia Growth Hub today celebrated its first year of work.

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Angus Berry, energy manager at Thames Water, and Richard Robey, sales and marketing director at Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Most read

Most commented

Topic pages