Source: Premier Foods

Mr Kipling owner Premier Foods is ramping up its presence in the breakfast market with the acquisition of the Fuel10k brand.

Announcing the £34m deal, Premier said it expects to unlock significant future value by growing the brand, which sells products including granola, porridge, muffins, cookies, and snack bars. The company reported that Fuel10k, which is stocked by the major supermarket chains, had a record of double-digit revenue growth over the past three years.

Premier chief executive officer Alex Whitehouse added that the brand had a differentiated category position by offering a protein-enriched product range and appealing to younger consumers.

“We expect to deliver significant further profitable growth of Fuel10K through the deployment of our successful branded growth model,” he explained, adding that Premier had increased revenue and profit in The Spice Tailor business it acquired last year.

Premier is hoping to boost its expansion into the breakfast category and build on the recent launch of Ambrosia porridge pots.

The Fuel10K deal completed yesterday (29 October), with Premier paying an initial £29.6m through available cash reserves. A minimum further deferred consideration of £4m is payable in FY26/27.

Fuel10k co-founder Barney Mauleverer said the brand was excited to be handing the reins to the owner of “such a great stable of UK brands”.

“Having built the foundations from start-up, the Fuel10k brand is now primed to accelerate into the future and achieve even more great things,” he added. “I could not think of a better custodian of our brand than Premier Foods to entrust what we have begun and make the most of such a great opportunity.”

In a first-quarter trading update this summer, Premier reported continued growth in its sweet treats division, which includes own-label products and Mr Kipling and Cadbury cakes. A year-on-year Q1 increase of 7.6% was recorded by the division, with total sales up from £55.4m to £59.6m.