Mr Kipling cake maker Premier Foods to cut prices on more products
Premier Foods, the company behind Mr Kipling cakes, has promised to cut prices across more of its ranges.
The firm's boss, Alex Whitehouse, said they'll be reducing costs on items like Loyd Grossman cooking sauces and Mr Kipling Bakewell slices by the end of March. This follows Premier's move to start lowering prices on big-name products like Batchelors Super Noodles and some Mr Kipling slices in the last three months of 2023.
This was possible due to falling cost inflation and efforts to be more efficient. The company, which also makes well-known brands like Oxo, Bisto and Angel Delight, said this helped boost its performance in the quarter. Group sales were up 14.4% in the three months to December 30.
Mr 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."
This suggests food inflation might be easing after last year's sharp increases, which saw prices rise at the fastest pace for over 45 years. Official figures showed UK food price inflation fell to 8% last month, down from 9.2% in November and the lowest rate since April 2022.
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There are concerns that attacks on shipping in the Red Sea could impact food retailers' costs if disruptions persist. Premier Foods reported an 11.9% increase in grocery sales during the Christmas quarter, with a whopping 21.3% jump for its sweet treat ranges.
The company saw high demand for its festive ranges, such as Mr Kipling's Best Ever Signature mince pies, selling 190 million mince pies overall four million more than last year. New product categories also saw sales more than double in the quarter, with Ambrosia Porridge pots and Angel Delight ice-cream being standout performers.
Premier confirmed it is on track with its recently upgraded profit outlook, having said in November that full-year trading profits are set to be around a tenth higher than last year.
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