Premier Foods to prune roster after RHM buyout

by Melanie Godsell, Marketing 06-Dec-06

Premier Foods' £1.2bn acquisition of rival RHM has put the companies' respective ad agencies on alert.

Insiders widely expect the ad accounts to be slimmed down. Premier Foods
currently uses DLKW for Ambrosia and Branston Pickle, and Clemmow Hornby
Inge for Loyd Grossman, while Publicis handles OXO.

RHM's Hovis brands use DDB London, while McCann Erickson works on Manor

Bakeries brand Mr Kipling as well as Bisto, Sharwood's and
Robertson's.

The cash-and-shares deal, which was finalised on Monday morning, creates
the UK's biggest food company, with combined sales of about £2.5bn
and an annual ad budget in excess of £20m.

The merged entity is planning to exploit its position as the UK's
biggest food supplier by taking advantage of synergies the company
claims will save £85m a year.

Premier Foods has already announced plans to integrate RHM's culinary
brands, cake and customer partnerships divisions into its grocery
operations, which could lead to redundancies.

Premier Foods already owns the UK and Ireland operations of Campbell
Soup, which it purchased for £460m in July, and the Quorn brand.
Premier also bid for United Biscuits in the summer, but was thwarted by
Blackstone Partners, which acquired the biscuit manufacturer in a deal
worth £1.6bn.

No one at Premier Foods was available for comment.