Premier Foods confirms 19% reduction in marketing spend in 2011
Premier Foods, the maker of Mr Kipling and Batchelors products, has revealed that it reduced its consumer marketing spend by 19% last year to £25.6m and has now vowed to draw a line under a difficult 2011.
Hovis: one of Premier Foods' eight power brands
The company also today (19 March) confirmed that it had received backing from its banks and pension scheme partners for a four-and-a-half-year refinancing package, which will extend its banking facilities of £1.4bn until June 2016.
Premier Foods, which has been forced to shrink the size of its business by selling off brands in an effort to reduce its debt pile, has renamed its Hovis division, the "bread division".
Premier Food's renegotiation of its banking facilities has been undertaken to support a new strategic plan, which will focus on its eight "power brands": Hovis, Ambrosia, Mr Kipling, Sharwood's, Loyd Grossman, Bisto, Oxo and Batchelors.
Last week it consolidated its creative agency roster, switching advertising duties on the eight brands from Dare and 101 into McCann London and JWT London. It parted company with group marketing director Jon Goldstone earlier this year.
The company claims that its overall advertising spend this year will be £50m.
Michael Clarke, chief executive, Premier Foods, said: "We intend to draw a line under the performance of 2011. Having put the financing and strategic building blocks in place, our immediate priorities are to implement this refinancing packaging, continuing stabilising the business, refocus the portfolio, and invest in our future growth.
"Whilst we recognise that the consumer environment remains challenging, our performance thus far in 2012 is in line with our expectations.
Follow John Reynolds on Twitter @johnreynolds10
This article was first published on marketingmagazine.co.uk
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