Consumers feeling more confident as cost-of-living pressures ease have led to a switch from own-label products to brands, Mr Kipling and Loyd Grossman owner Premier Foods said.
The Hertfordshire-based food giant said its branded products sold particularly well over the first half of the year.
Premier Foods, which owns a raft of brands including: Bisto, Oxo, and The Spice Tailor; and makes Cadbury cakes; reported revenues of £498.7 million for the six months to September 28.
This was 4.6% higher than the same period a year ago, while revenues from branded products rose 6.8%.
As inflation has begun to ease, and shoppers are starting to feel more confident, we’ve seen consumers treat themselves more
On the other hand, revenues from non-branded food products that the firm sells dropped more than a 10th year-on-year.
Premier Foods said this reflected consumers switching to brands from own-label food products, as well as sharper discounting on brands.
It marks a significant shift in sentiment from the peak of the cost-of-living crisis when many retailers reported consumers switching from brands to own-label products in a bid to save money.
But Premier Foods said it was seeing more people “treat themselves” on their food shop.
“As inflation has begun to ease and shoppers are starting to feel more confident, we’ve seen consumers treat themselves more, helping sales of both Mr Kipling Signature Bites and Ambrosia Deluxe more than double in the first half of the year,” said Alex Whitehouse, the group’s chief executive.
“As we look to the second half, we have exciting plans in place across all our brands, with our best ever Mr Kipling Signature mince pies benefitting from expanded distribution.”
Premier Foods reported an adjusted pre-tax profit of £61 million for the half-year, nearly 9% higher than the prior year.
