Premier Foods, the company behind brands such as Bisto, Mr Kipling, and Ambrosia, has revealed that selected discounting helped it deliver strong sales growth over the Christmas period, with it planning for more price cuts in the months ahead.
During its third quarter period to 30 December, the group’s total sales climbed 14.4% to £352.7m, with branded products up 12.7% and non-branded jumping 22.4%.
Premier’s grocery division saw sales increase by 11.9% in the quarter after its Bisto, Oxo and Paxo brands enjoyed a strong festive season, driven by both core and new product ranges. The company also noted sales from new categories more than doubled in the quarter after Ambrosia grew its porridge pots range and Mr Kipling and Angel Delight ice-cream secured more retail listings.
Non-branded grocery sales were 14.5% higher, reflecting price increases in retailer-branded product categories compared to the same quarter last year.
Meanwhile, the group’s branded Sweet Treats business returned to growth, with sales up 17.1%, largely due to higher sales of Cadbury cake lines compared to last year. The performance reflected growth in its core Cadbury Mini Rolls and cake bars and a softer comparative due to unscheduled maintenance of a plant line last year. Premier also sold four million more Mince Pies than last year, including a new Mr Kipling ‘Best Ever’ Signature line. Non-branded Sweat Treat sales jumped 28.7%, driven by contract gains in pies and tarts and pricing benefits.
Meanwhile, the group’s international sales continue to build, growing by a further 11.3%.
Chief Executive Alex Whitehouse noted that Premier Foods had made strong market share gains during the period, adding: “The lower promotional price points we introduced in the third quarter have positively impacted performance while also helping consumer budgets go further.”
With industry cost pressures continuing to ease, the CEO said: “These lower prices will be extended to additional products such as Loyd Grossman cooking sauces and Mr Kipling Bakewell slices in quarter four.”
The company concluded that it continues to trade strongly, and with it now into the final quarter of its financial year, it is on track to deliver against its previously raised profit expectations.
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