Volume-led growth in branded sweet treats at Premier Foods helped cover lost ground across other divisions during the first quarter of its latest financial year.
The St Albans-based manufacturer saw an 11.4% leap in sales of its Mr Kipling and Cadbury cake ranges compared to the same period a year ago, reaching £57.8m for the 13 weeks to 28 June 2025.
The branded sweet treats division was maintaining its strong momentum from FY25, when it reported 7.3% growth over the full year. Premier Foods CEO Alex Whitehouse highlighted how Q1 growth had been driven by the strength of its innovation programme, with new product ranges such as Mr Kipling Birthday Cake Tarts performing very well. “We brought to Britain a trend that is particularly popular in the US,” he added.
As with the previous financial year, Mr Kipling Signature Brownie Bites contributed strongly to growth along with the healthier Lunchbox Slices, which were launched in March. Towards the end of the quarter, new Mr Kipling Breakfast Bakes containing fibre and 30% less sugar were rolled out.
Cadbury cake, meanwhile, benefitted from the return of Caramel Mini Rolls. Premier Foods noted that the UK cake category had grown in the period with both its brands delivering volume and market share gains.
Non-branded sweet treats went down by £500k to £7.5m, due to contract exits on Swiss Rolls, Whirls and Slices. Premier Foods’ grocery division – which incorporates brands such as Ambrosia, Batchelors, Bisto, and Sharwood’s – dipped 2.8% to £174.4m, which was said to reflect the presence of warmer weather throughout the period, a historical headwind to ambient food demand.
Overall, group sales were up by 0.2% year on year to hit £239.7m. As such, Whitehouse confirmed that full year trading profit expectations remained unchanged, underpinned by the “proven branded growth model and ongoing cost efficiency programmes”.
New CMO appointed
At the same time at posting its Q1 results this morning (17 July), Premier Foods announced the appointment of Catherine Lloyd as its new chief marketing officer, effective from 28 July. She replaces Yilmaz Erceyes, who stepped down in May.
Lloyd brings over two decades of FMCG brand and marketing experience to the role including 17 years at Reckitt Benckiser, most recently leading the strategy for its health portfolio and playing a critical part in the rollout of generative AI across company-wide marketing operations. She previously worked for Boots and Upfield.
“This is an incredible role, looking after some of the biggest and most successful food brands in the UK,” commented Lloyd. “I’m really looking forward to meeting the full team and to building on the work they have been doing over the past six years to take our portfolio of brands to the next stage of growth both in the UK and internationally.”
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