Premier Foods gets helping hand from Mr Kipling treats as weather sparks soup slide

The British sweet tooth rescued Ambrosia-to-Oxo-maker Premier Foods’ third quarter, as the company’s star brand Mr Kipling Cakes helped to deliver a 6.5% increase in sweet treat sales.

Strong sales of sugary treats, including 185 million mince pies, helped the company report flat total year-on-year sales in the final quarter, after warm weather deterred shoppers from buying some of its soups and cook-in sauces.

However, shares fell by 6% to 37p as the third-quarter numbers revealed how vulnerable the manufacturer still was to declining food prices.

Boss Gavin Darby said: “With food prices declining by at least 2%, the only way we can grow our business is to bring out new products and innovate,” Darby said.

Batchelor’s soups, Ambrosia custard and cook-in sauces sold in lower volumes in the final quarter.

Total sales were flat at £245 million, with grocery sales falling by 2.7% in the quarter, in contrast to the 6.5% rise in sales of cakes, biscuits and treats.

Premier next month launches a range of Paul Hollywood bread mixes and cake mixes, to cash in on the Great British Bake Off popularity.