Jubilee provides a boost for Premier Foods

MR Kipling’s launch of “Great British Fancies” for the Queen’s Diamond Jubilee celebrations delivered a boost to sales figures at owner Premier Foods today.

The patriotic cakes were supported by a major advertising campaign that helped the UK’s biggest food producer to report a two per cent rise in sales from its eight frontline brands in the first six months of this year.

Premier, which also owns Hovis, Bisto, Ambrosia and Loyd Grossman, said Mr Kipling sales “increased strongly” after it launched a Snack-pack format and other Jubilee-related products such as Mini Classics.

The St Albans-based company has been struggling under a £1.2bn debt mountain following a spending spree that included Mr Kipling owner RHM.

However it hopes it is on the mend after sealing a £1.4bn refinancing deal with banks and £40m of cost savings ahead of plan by the end of this year.

The ongoing restructuring meant it recorded bottom-line losses of £27.3m, compared with profits of £11.2m last time, but focusing on the eight main brands its trading profits were 3.2 per cent higher at £53.2m.