The owner of Mr Kipling cakes and Oxo Cubes has promised to reduce prices across more of its range after scoring its ‘biggest ever Christmas’.
Premier Foods chief executive Alex Whitehouse said the group will extend price cuts to ranges such as Loyd Grossman cooking sauces and Mr Kipling Bakewell slices in the run-up to the end of March.
The company, which also owns Ambrosia, Bird’s Custard and Angel Delight moved to start lowering prices in the final three months of 2023, thanks to easing cost inflation and efficiency efforts.
In a trading update, Premier Foods said grocery sales rose by 11.9 per cent in the Christmas quarter, with a 21.3 per cent increase for its sweet treat ranges.
In a trading update on Tuesday, Premier Foods said grocery sales rose by 11.9 per cent in the Christmas quarter, with a 21.3 per cent increase for its sweet treat ranges.
The group said this helped contribute to its ‘biggest ever Christmas’, with group sales up 14.4 per cent in the three months to 30 December.
The latest British Retail Consortium-NielsenIQ shop price index, also published earlier this month, showed UK food price inflation eased to 6.7 per cent in December compared to 7.8 per cent in November.
While still elevated, it marks the lowest reading since June 2022.
But there are some fears that attacks on shipping in the Red Sea could affect costs for food retailers if disruption continues.
Attacks by the Iran-aligned Houthi militia on ships has caused a major halt to Red Sea trade since November.
The alternative shipping route around South Africa’s Cape of Good Hope can add 10-14 days to a journey compared to passage via the Red Sea and Suez Canal.
Whitehouse said: ‘The lower promotional price points we introduced in the third quarter have positively impacted performance while also helping consumer budgets go further.
‘These lower prices will be extended to additional products such as Loyd Grossman cooking sauces and Mr Kipling Bakewell slices in quarter four.’
The firm also saw strong demand for its festive ranges, such as Mr Kipling’s Best Ever Signature mince pies, while it said it sold 190 million mince pies overall, up four million on the previous year.
The group added that sales from new categories more than doubled in the quarter, with Ambrosia Porridge pots boosted by the launch of the new apple and blueberry flavour, while Angel Delight ice-cream was also a ‘standout performer’.
Premier Foods shares rose by 0.14 per cent to 140.40p in in early afternoon trading on Tuesday.
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