Premier Foods has put £10m ($16m) behind a multi-media promotional Mr Kipling campaign, just months after committing £20m ($32m) for a snack pack production line.
40 jobs are threatened at logistics firm Swansea Bakeries Limited (SBL) amid proposals to shift its contract to handle logistics for Premier Foods’ Hovis brand to Hovis’ Avonmouth depot.
Premier Foods has recommenced sourcing British wheat for its Hovis brand but cannot bring back its ‘100% British wheat’ pack claim due to continued uncertainty, it says.
Premier Foods now has “the brightest outlook for a decade”, after re-engineering its balance sheet with a major refinancing plan, says City analyst Shore Capital.
Premier Foods has revealed 18% growth in trading profit in full-year results for 2013, alongside a new pensions deal and a much-awaited major capital restructuring plan designed to “liberate the firm from its past”.
Premier Foods’ £87.5M joint venture with the US-based Gores Group has drawn a mixed reception from leading City analysts, as the manufacturer confirmed trading profit for the year ended December 31 would be in line with market expectations.
US Gores Group is allegedly in talks to buy out a stake of Premier Foods’ Hovis business and a city analyst has said that geography would not impact its ability to turn around the struggling brand.
Premier Foods is remaining tight-lipped about reports that the Mexican bakery Grupo Bimbo may acquire its troubled bread division, as the firm’s short-term prospects divided City opinion.
Premier Foods is ahead of target on cutting suppliers and product lines, according to ceo Gavin Darby, reporting on third quarter (Q3) financial results yesterday.
Poor UK harvests and a deregulation of Canada’s grain market has meant that Canadian wheat sales to the UK have increased by 50%, but the UK industry says that need not mean a long term trend.
