Mr. Kipling’s maker promises no more price hikes when cost pressures peak
- The group also revealed a 94 bps increase in food market share
- The slight fall in food inflation eased the pressure on poor Britons
The Premier Foods boss has said that input cost inflation is “now past its peak” as he promised no further price increases for the rest of this year.
Premier Foods, whose stable of brands includes Mr Kipling cakes and Oxo Cubes, saw sales rise 21.1 percent year-on-year in the 12 weeks to July as the manufacturer gained strong market share.
The group’s statement about easing cost pressures follows similar claims from supermarket bosses and new data from the Office for National Statistics this week revealing slowing consumer price inflation.
Premier Foods, the makers of brands such as Mr Kipling cakes, has said its sales grew 21.1 percent year-on-year, while branded sales were also up 17.5 percent
Alex Whitehouse, CEO of Premier Foods, said: “We believe the recent period of significant input cost inflation has now passed its peak and no further price increases are planned for the remainder of 2023.”
British food and drink manufacturers cut prices in June for the first time in more than three years, passing on lower production costs down the supply chain.
According to the Lloyds Bank UK Sector Tracker, ‘factory gate’ prices paid by wholesalers and retailers have fallen from the previous month for the first time since February 2020.
Similarly, data from market researcher Kantar shows that food price inflation declined in June at its fastest rate since price increases peaked.
Premier Foods also revealed a 94 bps increase in grocery market share in the first quarter as branded sales grew 17.5 percent.
Mr. Kipling achieved record market share in Australia and continued to build distribution in the US.
Whitehouse said: “We started the year strong and maintained the positive momentum of previous quarters, with sales growth of 21.1% in the first quarter, branded sales up 17.5% and continued gains in grocery market share.
“Our sales performance was broad-based, supported by continued brand investment, new product development such as Mr Kipling Brownie Bites and strong in-store activation.
“With this positive momentum and strong plans behind our leading brands for the remainder of the year, we now expect FY23/24 trading profit to be at the high end of market expectations.”
Premier Foods Stocks jumped 1.6 percent Thursday afternoon to 129.6 p. They have added 18.9 percent since the beginning of the year.