Raisio last month stopped production of Honey Monster Puffs cereal with the closure of its factory in Southall, near London, as part of a restructuring of its UK cereal and snacks business.
Under the licensing agreement, from July 1 2016 Brecks will begin manufacturing, marketing and selling Honey Monster products in the UK.
Raiso today (April 13) told BakeryandSnacks it was confident there were sufficient supplies of the cereal and that there would be no availability issues in the interim period.
'No impact on group earnings'
Finnish business Raisio, which will continue to sell Harvest Cheweee snack bars and cholesterol-lowering Benecol products in the UK, said the license agreement would not have a significant impact on group earnings. The business would continue to focus on healthy snacks, added Raisio CEO Matti Rihko.
Overall UK cold breakfast cereal sales fell 5.6% last year on volumes down 2.8% [IRI 52w/e 5 December 2015].
“Ready-to-eat breakfast cereals are not at the core of Raisio’s strategy so the licensing of the Honey Monster brand is a good solution that ensures that Honey Monster cereals will continue to be available to British consumers,” he said.
'Tell them about the honey, mummy'
Honey Monster Puffs were launch in the UK in the 1950s are were known as Sugar Puffs until 2014, when they were reformulated and rebranded to help combat growing concerns over the sugar content of breakfast cereals.
The brand is known for mascot the Honey Monster and its catchphrase made popular in the 1970s: “Tell them about the honey, mummy”.
Established in 1992, Brecks produces extruded cereals from two manufacturing sites in the UK, supplying products including cereal bars and breakfast cereals in addition to inclusions for confectionery and baked goods.
Strong business-to-business experience
“As a UK business, we’re delighted to add such an iconic Honey Monster brand to our portfolio,” said Brecks founder and managing director James Hirst. “Brecks has strong business-to-business experience and we’re looking forward to taking the beloved Honey Monster brand on to the next level.”
Raisio closed its Southall site, with the loss of 99 jobs, following a consultation process started at the beginning of last October, when the company said changing consumer behavior had led to the decline of the entire UK cereal market and increased competition.