Price pressures hit Premier Food sales
BRANSTON pickle and Mr Kipling cakes company Premier Foods warned yesterday that its Hovis bread brand risked losing market share amid increased promotional activity by rivals.
Premier, which has a substantial manufacturing presence in East Anglia, including a factory in Bury St Edmunds, said that Hovis boosted its share in value terms to 25.6% during the first three months of 2010.
But this trend was now under pressure to due competition from brands such as Warburton’s and Kingsmill, both owned by rival group Associated British Foods.
However, Premier added that it expected a fightback by Hovis during the second half of this year as a result of its own marketing and promotional activity, highlighting the recent conversion of the entire Hovis range to 100% British wheat.
Across its business as a whole, Premier said trading conditions remained difficult due to “elevated” levels of promotional activity in the food sector.
You may also want to watch:
Sales of its branded ranges grew in volume by 2.2% during the first quarter but price competition meant that, in value terms, sales fell by 0.3% during the period.
The was despite a strong performance by key brands such as Mr Kipling, Ambrosia and Sharwoods cooking sauces, which saw growth of 6.6% by volume and 3.4% by value.
- 1 Six senior players - including Downes - will start pre-season with Under-23s
- 2 League One side showing strong interest in Ipswich youngster Lankester
- 3 Head chef frustrated after 13 'no shows'
- 4 Man dies following stabbing in Bury St Edmunds
- 5 Town show Jacobs interest but injury holds up potential deal
- 6 Woman who pocketed cash for memorial bench avoids prison
- 7 Man in 50s dies following crash on Suffolk border
- 8 When Eagles Dare documentary reveals how close Ian Holloway came to being named Ipswich Town manager
- 9 Rubbish dumped on A14 approach road
- 10 Mike Bacon: We needed an enormous brush.... And it looks like we are getting one!
Non-branded sales were sharply lower due to promotional activity and lower flour prices, Premier added.
Premier It added that it remained cautious about the trading environment, but forecast “further progress” in 2010 assuming “no adverse change” in the current conditions.