Premier Foods expects Hovis market share to come under attack
With the news of disappointing sales overall, Premier Foods has admitted that it expects to see its dominant share of the UK bread market with Hovis diminish as rival bread brands step up promotional activity.
The company saw its share value to 25.6 percent during the first three months of the year, but competition from Warburton’s and Kingsmill are expected to fightback over the course of this year.
Warburtons has recently launched a new TV marketing campaign, while this week Kingsmill’s on-pack promotional sponsorship of TV programme Britain’s Got Talent hit shelves.
Premier Foods, which also owns brands such as Mr Kipling and Branston Pickle, saw an overall fall in sales of 5.1% in the three months leading up to March and has said that it plan on spending an extra £6 million on marketing in a bid to arrest the decline.