Premier Foods makes a range of everyday favourites from Birds Custard to Bistro Gravy (PA)
(Picture: PA Media)Premier Foods announced plans today to close one of its factories, as the impact on of stubbornly high inflation cast a shadow over news of a rise in third-quarter sales.
The FTSE 250 maker of Angel Delight and Birds Custard said its powdered foods plant at Knighton in Staffordshire could shut in mid-2023. Staff consultations are starting at the loss-making facility, which was acquired by Premier in 2004 when it bought the two brands from Kraft of the US.
Around 300 jobs are at risk at the factory, which now mainly makes what the firm called “non-branded powdered beverages”. Premier said the staff there “will be fully supported and consulted with throughout the process.” The closure will cost around £10 million and will mean that around £27 million in sales “will be carefully managed for exit”.
The St Albans based company has been dealing with rising costs at a time of double-digit inflation, led at times by rising food prices. It said today that input cost inflation “remains at elevated levels” and that it was continuing to take action to offset it.
Nonetheless, overall group sales rose 12% in the three months to December 31, leaving it “well on track” to meet forecasts for the full year, which expect revenue of over £960 million.
Third-quarter sales in its grocery products division were up over 17%. That helped offset a 0.9% decline in sales at its Sweet Treats unit, which came in part after sales of Cadbury branded cake production was affected by unscheduled maintenance at one production line.
Demand for its grocery products, which include the Home Pride chef’s sauces brand, was “particularly buoyant running into the key festive period”. Sharwood’s, the Asian cooking range, grew sales by a fifth after major new listings in Canada.
Alex Whitehouse, chief executive, said: “Established seasonal favourites including Ambrosia custard and new launches such as Bisto pigs-in-blankets gravy granules all proved very popular. Mr Kipling had another strong performance.”
