Price rises in the second half of 2007 helped keep sales growing at manufacturer Premier Foods, the company said today.
Premier, manufacturer of household names such as Hovis, Branston Pickle and Mr Kipling, reported a 1.4% sales increase for the year ended 31 December 2007, with a 3% increase in sales during the second half.
The price of milling wheat more than doubled in 2007, but Premier said it was able to counteract these costs by putting up prices in September and October, and through cost savings. Competitor brands have now also joined Premier by increasing prices in early December.
Cakes had also boosted the business, said Premier, reporting a year-on-year sales increase of roughly 7% for the same period.
Looking ahead, Premier Foods said it expected the market “to remain highly competitive in 2008 with input cost inflation continuing to be a factor”.
