Can Fred save Premier Foods?

23 July 2014

fred Premier Foods are relaunching Mr Kipling and bringing Homepride's Fred back in a hope to reverse its fortunes, after revealing a £54.9 million half year pre-tax loss.

Sales fell 6.1% to £364.4 million in the first half of the year as difficult market conditions in the supermarkets sector hit the food group.

Along with Mr Kipling and Homepride, the company also looks after OXO, Bisto, Sharwoods, Batchelors, Ambrosia and, oh, Loyd Grossman.

As well as that lot, the company's 'support brands' include Angel Delight, Birds, Saxa, Paxo, Atora, Cadburys (cakes end), Smash, Marvel, McDougalls and Lyons.

Or what they call in the trade 'ambient grocery'. Amazing.

Basically, if you don't own or use at least one of those items, then you're a social outcast and deserve to have urchins point and laugh at you in the street.

Gavin Darby of Premier has tried to calm the unrest by saying: “We grew profitability and most of our ammunition is yet to fire. The second half of the year will see a number of new product launches.”

The company is rumoured to be ploughing £30 million into a marketing spend, with new Mr Kipling adverts happening in August.

Following that, there'll be a number of other product launches, including Bisto gravy and casserole pastes, Batchelors deli-box cous cous, Sharwood's mini poppadoms and Cadbury sponge pudding desserts.

Cous-cous. I ask you.

And jolly floury chum Fred returns Bowie-ly to our screens after seven years, for the first major Homepride adverts in a decade.

For the period Premier Foods said trading profit was up 2.1% to £48.1 million, better than analysts expected, and it said profit expectations for the year remain unchanged.

Gross profit margin rose from 33.2% to 34.6%. The pre-tax loss  was largely because of a write-off of financing costs.

Looks like they're banking on a revival of '80s food.

1 comment

  • samuri
    Perhaps if they went back to the original size cakes and traditional recipes and culled there fucking greed i wouldn't look at there product and say "fuck that!"

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