UK food manufacturer Premier Foods has issued a profit warning following a slump in sales. Total sales fell by 3.6 per cent to £477 million in the third quarter of 2011. Sales volumes dropped by eight per cent. The group's market share dropped by 1.9 per cent in value terms. "Based on Q3 trading performance, we now expect that full year trading profit will be below the range of market expectations with the extent of the shortfall dependent on the Christmas trading period," said a spokesperson for the company.
Michael Clarke, the group's new chief executive, has set out plans to turn around the fortunes of the business; he said he has identified eight key brands to focus on going forward. "While the current trading performance continues to be disappointing and significantly behind our expectations, we have already identified a number of steps to build a more profitable business," said Clarke. "These include focusing on 8 'Power Brands', strengthening our sales and marketing execution and reducing our cost structure."
The eight key brands are Ambrosia, Batchelor's, Bisto, Hovis, Loyd Grossman, Mr. Kipling, Oxo and Sharwood's. (10 Oct)
© ESM: European Supermarket Magazine
