Mr Kipling owner Premier Foods extends price cuts to more ranges

Mr Kipling cake firm Premier Foods has pledged to reduce prices across more ranges as it passes on lower costs.

Chief executive Alex Whitehouse confirmed the group will extend price cuts to ranges such as Loyd Grossman cooking sauces and Mr Kipling Bakewell slices over its fourth quarter to the end of March.

It comes after the company moved to start lowering prices of major branded products in the final three months of 2023, such as Batchelors Super Noodles and some Mr Kipling slices, after seeing falling cost inflation and thanks to efficiency efforts.

Premier – which also makes a raft of branded products such as Oxo, Bisto and Angel Delight – said this helped boost its performance in the quarter, with group sales up 14.4% in the three months to December 30.

Mr Whitehouse said: “The lower promotional price points we introduced in the third quarter have positively impacted performance while also helping consumer budgets go further.

“These lower prices will be extended to additional products such as Loyd Grossman cooking sauces and Mr Kipling Bakewell slices in quarter four.”

It offers further signs of an easing in food inflation after last year’s painful increases, which saw prices rise at the fastest pace for more than 45 years.

Official figures showed wider UK food price inflation fell back to 8% last month, down from 9.2% in November and the lowest rate since April 2022.

But there are some fears that attacks on shipping in the Red Sea could affect costs for food retailers if disruption continues.

Premier Foods said grocery sales lifted 11.9% in the Christmas quarter, with a 21.3% leap for its sweet treat ranges.

It saw strong demand for its festive ranges, such as Mr Kipling’s Best Ever Signature mince pies, while it said it sold 190 million mince pies overall – four million more than the previous year.

The group added that sales from new categories more than doubled in the quarter, with Ambrosia Porridge pots boosted by the launch of the new apple and blueberry flavour, while Angel Delight ice-cream was also a “standout performer”.

Premier confirmed it is on track with its recently upgraded profit outlook, having said in November that full-year trading profits are set to be around a tenth higher than last year.