Premier Foods to focus marketing spend on fewer brands

Premier Foods, which owns the Bisto, Mr Kipling and Hovis brands, will focus its marketing budget on fewer brands as part of the company’s turnaround strategy.

/s/p/m/HovisGoonLad.jpg

Jon Goldstone, who takes on Premier Foods’ first group marketing director role in January, says the company has previously spread its marketing budget too thinly across too many brands.

“I’m keen to identify brands that will benefit from increased investment and focus budget on where it can be most effective.

“If we apply bigger budgets on a smaller number of brands, the net return will be better,” he says.

Under the new strategy, some of Premier Foods’ brands will have increased marketing investment while others will have marketing spend reduced.

Goldstone, who is currently marketing director for the Hovis brand, says it is too early to say which brands will be the main focus.

“All of our brands have merits either in retail value, brand equity or strong growth. We have to put that together to identify which ones to focus on.”

He says the company is trying to do two things at the same time: increase brand sales and reduce the company’s debt.

“We acknowledge that our brands could be growing faster. The business has a fair amount of debt so it needs to accelerate growth and leverage the fantastic brand portfolio,” he adds.

Premier’s debt is said to be £1.4bn, built up when acquiring companies including Hovis owner RHM and the UK and Irish businesses of the Campbell Soup Company. It has said it is open-minded about selling brands and is in advanced talks with two parties over the sale of Quorn.

Goldstone’s appointment is part of a senior management restructure that includes the creation of the company’s first group chief operating officer. Its aim is to align the structure more closely with its corporate strategy.

Tim Kelly, currently Hovis chief operating officer, will take responsibility for brand and commercial operations across Premier’s brand portfolio.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here