Premier reports Jubilee sales boost

Updated: 
QueenMr Kipling's launch of "Great British Fancies" for the Queen's Diamond Jubilee celebrations has delivered a boost to sales figures at owner Premier Foods.

The patriotic cakes were supported by a major advertising campaign that helped the UK's biggest food producer to report a 2% rise in sales from its eight frontline brands in the first six months of this year.

Premier, which also owns Hovis, Bisto, Ambrosia and Loyd Grossman, said Mr Kipling sales "increased strongly" after it launched a Snack-pack format and other Jubilee-related products such as Mini Classics.

The St Albans-based company has been struggling under a £1.2 billion debt mountain following a spending spree that included Mr Kipling owner RHM.

However it hopes it is on the mend after sealing a £1.4 billion refinancing deal with banks and £40 million of cost savings ahead of plan by the end of this year.

The ongoing restructuring meant it recorded bottom-line losses of £27.3 million, compared with profits of £11.2 million last time, but focusing on the eight main brands its trading profits were 3.2% higher at £53.2 million.

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