Premier reports Hovis sales revival
BREAD brand Hovis is starting to fight back against North West-based market leader Warburtons.
Hovis’ parent company Premier Foods said in a trading statement that sales of Hovis branded bread had risen 22% in the third quarter, compared with last year.
It said: “Hovis has maintained its strong market share performance through the third quarter, reaching 26.2% for the 12 weeks ending 5 September 2009, compared to 22.8% for the equivalent period last year.”
Bolton-based Warburtons replaced Hovis as the leading bread brand about four years ago as the family-owned North West company rolled-out a major expansion programme.
As well as Hovis, Premier owns the Sharwoods, Bisto, Quorn and Mr Kipling food brands.
It employs nearly 700 people in the region – including 350 at Manor Bakeries on Merseyside and 80 at its Sarsons Vinegar brewery in Middleton.
Last year it created 240 jobs at a service centre for back office functions in central Manchester.
In its trading statement today the company said total branded sales in the third quarter were up 6% in third quarter, and that it was on target to meet expectations for the full year.
Analysts expect profits to come in between £162m-£186m.
Robert Schofield, chief executive, said: “We are pleased by the progress that the business has made in a tough trading environment.
“Our brands continue to perform well; across the group their growth rate has increased from 5% in the first half to 6% in the third quarter as volume growth has accelerated.
“We have also exited some low margin retailer brand contracts, which, whilst reducing overall sales growth, has improved our branded mix.
“As we enter the important Christmas trading period, in what is a competitive environment, we remain confident of achieving adjusted profit before tax for the full year within the range of market expectations.”
