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Premier Foods plans to invest up to £44m in marketing this year unchanged by Brexit vote

Premier Foods has unveiled its Q1 resutls / Premier Foods

Premier Foods has released its trading update for the first financial quarter of 2016, posting sales growth and saying that it expects to avoid any economic fallout from the Brexit.

Overall, the group’s sales were up 1.9 per cent for the 13 weeks to 2 July. The grocery division enjoyed the same amount of growth as the inclusive figure, while the company’s sweet treats offering received a slightly higher boost of two per cent.

The maker of Mr Kipling, and Loyd Grossman sauces said that while it recognised the broader implications of the UK’s vote to leave the European Union, the financial impact on its own business was anticipated to be “low”.

As previously announced, the company will go ahead with plans to invest between £42m to £44m in consumer marketing in the coming financial year, with nine of its key brands still poised to launch TV ads in 2016/17.

“This represents a significant increase on the £36m invested in the prior year and marks the third successive year of increased consumer marketing investment,” said the group.

Britain's departure from the EU has caused some marketers to say they will put the brakes on ad spend, posing themselves for a dip in consumer sentiment in the Europe market.

Premier Foods, however, is set to buck this trend, saying in a statement: “While the economic environment is more uncertain following the EU referendum outcome, our immediate financial exposure is expected to be limited.

"Given 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 Foods said in a statement on its website.

International sales for Premier were up by five per cent thanks to a strong performance in Australia, with the business saying that “good progress” is also being made in extending its brands in the US and Middle East.

Household staple Bisto had "strong momentum" according to the group, while Cadbury Amaze bites noted "strong sales" and Ambrosia's returned to growth thanks to the introduction of its frozen range.

Earlier this year, Premier Foods rejected a bid from US food giant McCormick, claiming it had "undervalued" the UK brand with an offer thought to be worth $700m.

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