Premier Foods sales surge amid demand for store cupboard staples
Mr Kipling producer, Premier Foods, has reported a sales surge as the coronavirus lockdown drives demand for store cupboard items.
The food group, which also makes Ambrosia and Bisto, said UK sales rose by about 15.1% in March, with UK sales for the three months to the end of March rising 7.3%.
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Premier Foods said during “this challenging time” its manufacturing and distribution were working at “maximum capacity” and demand continued to be high.
Each factory worker has been given two additional days of annual leave and a £250 cash bonus.
The company added: “Volumes have started to reduce from the exceptional levels seen in March, although are still expected to continue to be higher than average patterns of demand.
“This reflects more meals being eaten at home than usual due to recent measures set out by the government, and hence increased demand for the group’s product ranges.”
It comes on the back of surging supermarket sales over the past month, as shoppers have stocked up on essentials.
Premier Foods made the announcement as it revealed a major shake-up of its pension schemes, following a year-long strategic review at the business.
It said this would involve a merger of its three separate pension schemes and would reduce the cash contributions from the group, as Premier looks to save money.
The debt-laden business has come under fire from activist investors in recent years, resulting in a leadership shake-up last year.
Premier said it expected to post a trading profit for the year ending 28 March at the “top end of market expectations” following a strong March period.
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