Rising popularity of discounters hits Premier Foods

23rd Oct 2014 07:21

The switch by UK shoppers to discounters has forced Mr Kipling and Sharwoods curry sauce maker Premier Foods to report lower sales and to warn that annual profits would be towards the bottom end of hopes.Premier said a loss of market share by the major supermarkets to price-cutters such as Lidl and Aldi in the last few months had affected its sales and volumes.It had also taken a hit from price inflation in the wider grocery market for the 11th month in a row and is expected to soften more.The company's underlying sales declined by 4.7% in the third quarter of the year, with branded sales 4.1% lower. Sales of so-called power brands such as Kipling decreased 5.1% although they displayed an improving trend towards the end of the quarter. Support brands included good performances from Homepride and Cadbury cake.