Premier Foods, the manufacturer of Mr Kipling and Cadbury cakes, has delivered sales growth of 1.9% for the 13 weeks ended 2 July 2016.
Branded sales were up 0.8% and non-branded sales rose by 9.8%.
A strong performance from Cadbury cake drove sales in the company’s sweet treats division, which rose by 2%. This reflected continued growth of new products, such as Cadbury Amaze Bites, along with strong sales from the core Cadbury cake range, said the company.
Non-branded sweet treats were up 11.9%, due to contract wins in both major retailers and the discounters’ channel. However, sales of Mr Kipling were lower “as a result of higher promotion activity in the prior year period”, it added. Its Cake-on-the-Go lines of twin pack Mr Kipling slices and Cadbury Mini Rolls, launched in April and aimed at the convenience market, were building distribution, with seven different formats now available in the market.
The launch its Mr Kipling Angel Slice, Cherry Bakewell and Apple Pie cupcakes range exclusively in Tesco in
Meanwhile, sales in the company’s grocery division increased 1.9%, with continued strong momentum for its Bisto and Loyd Grossman brands and a return to form for its Ambrosia line.
Gavin Darby, chief executive officer of Premier Foods, said: “Our category strategy of investing behind our brands continues to deliver results, despite the wider deflationary grocery market in the UK. While the economic environment is more uncertain, following the EU referendum outcome, our immediate financial exposure is expected to be limited. Give our strong brands and UK manufacturing cost base, we believe we remain well placed to make progress and our expectations for the full year remain unchanged.”
Premier announced a new food-to-go strategy for its cakes in April.
February this year is also performing well, said the firm.