Biscuits savour success as Northern Foods takes on pizza rival

The group has launched a multi-million-pound TV-backed relaunch for its Goodfella's pizza range after losing further market share to rival Chicago Town.

The advertising campaign started last month, with new recipes and packaging also designed to boost the brand.

Leeds-based Northern's wider frozen foods division, which includes Goodfella's, has been under pressure, and Northern recently switched the focus on achieving profitable sales growth and pulling out of low-margin business areas, such as supermarket own-label pies.

The group's other businesses – including sandwiches and salads, and the Fox's biscuits brand – have performed better, helping offset a 9.3 per cent sales slide in frozen food.

Revenues for the full year rose one per cent across the group, helped by a robust result in the bakery division, which reported sales up three per cent.

Consensus forecasts are for annual operating profits to rise three per cent, to 54.3m.

The City will also be looking for early feedback on Northern's new contract to supply BA with food on its short-haul routes from Heathrow.

The contract started on a phased basis in March, with Northern taking over the full supply from Gate Gourmet in June.

Earlier this year, Northern Foods said that the BA strikes had had minimal impact on its business.

The company, led by chief executive Stefan Barden, is expected to report a pre-tax profit of about 36.5m for the year to April 3, down from 39m as consumers tightened their belts.

The group said in March that like-for-like sales increased by just one per cent over the year but dipped 1.8 per cent in the final quarter.