Two Sisters Food Group has announced a licensing agreement with Premier Foods plc for the production, distribution, sales and marketing of its Hovis Breakfast Bakes range of breakfast biscuits.

The new agreement marks an important step for 2 Sisters Food Group as it looks to continually diversify within new food categories. It will run for an initial period of five years from 1 August 2013.

Colin Smith, Managing Director, Fox’s Biscuits, said: “I’m delighted with this agreement as it will enable both companies to be part of a relatively new and growing category.  We see enormous potential to grow one of the nation’s favourite brands, which has such a strong association with natural ingredients and goodness, in the biscuits sector. We will look to create new varieties within the current Hovis Breakfast Bakes range as well as innovate with new products.”

The £78 million breakfast biscuit market represents the fastest growing segment of the healthier biscuits category, growing at 8% annually.

Simon Devereux, Business Unit Director, Premier Foods’ Bread Division, said: “This licensing agreement is an excellent way for us to extend the Hovis brand into adjacent categories.  By working with 2 Sisters Food Group and Fox’s Biscuits, we have a partner with the biscuits expertise necessary to take full advantage of the market opportunities.”

The range of Hovis Breakfast Bakes includes Malted Crunch, Oats & Honey and Milk & Oats. They will be manufactured at the Fox’s Biscuits plant in Uttoxeter, Staffordshire. The licensing agreement also provides for other healthier biscuit options to be developed under the Hovis brand in the future.