Member Article

Premier Foods complain of subdued grocery market

Food manufacturer Premier Foods says sales were 6.2% down overall in the first quarter, year-on-year.

The maker of labels such as Hovis, Lloyd Grossman’s Sauces and Mr Kipling said the retail grocery market had remained subdued as a result of milder weather and a late Easter.

As expected, sales of the firm’s Grocery “Power Brands” declined by 3.5% in the first quarter of the year.

Premier said it would launch a range of new products in the second half of the year, backed with extensive marketing campaigns, including TV spots for its Batchelors Deli-Box items.

Non-branded sales were down 12.9% due to the impact of contract withdrawals in lower margin Desserts and powdered beverage contracts, although the firm expected this negative trend to ease into the second quarter.

Gavin Darby, CEO at Premier Foods, said: “As expected, we had a softer first quarter due to the subdued grocery retail environment, a later Easter and the impact of milder weather.

“Having announced the Hovis joint venture and a major and transformational new capital structure during the quarter, we can now focus all our energies on delivering our category growth strategy.

“Our expectations for the Full Year are unchanged. While trading conditions are expected to remain challenging for the remainder of the year, we have a strong programme of new product launches and consumer marketing planned for the second half of the year building on our enhanced customer partnerships with retailers and supported by continuing initiatives to reduce costs, complexity and improve efficiency.”

This was posted in Bdaily's Members' News section by Tom Keighley .