Premier Foods to double marketing spend to £41m

Premier Foods plans to double marketing spend behind its power brands this year as part of its long term recovery plan to improve the business performance, while slashing costs in other areas.

/s/y/v/premierbasket.jpg

The company outlined its “Power Brand” strategy to focus on Hovis, Ambrosia, Mr. Kipling, Sharwood’s, Loyd Grossman, Bisto, Oxo and Batchelors last year as part of a restructure that saw the business split into two divisions and the group chief operating officer role axed.

The company will launch TV ad campaigns for six of the eight brands within the first quarter of the year in a bid to boost brand engagement and sales and says the ad campaigns will “spearhead a full programme of new product innovation, promotions and marketing” throughout the year.

Premier spent £19.9m in 2011, according to internal figures, and plans to invest £41.3m in 2012.

The food company is mired in debt following a number of costly acquisitions in previous years and has struggled to repay its £850m debts. It’s banks recently granted the company extra time to negotiate its finances.

Premier expects to double its £20m cost reduction target by 2013 by creating a stronger and more efficient business to drive its recovery and growth plans.

It will review every aspect of costs and expects to introduce a number of cost saving initiatives this year, including reducing the workforce by 5%.

It is looking to sell off a number of brands to reduce the company’s debt and has already sold its Quorn, Brookes Avana chilled food business and four Irish grocery brands.

CEO Michael Clarke says: “We continue to deliver on our plans to stabilise the business and invest in our recovery and future growth. While decisions to reduce the workforce are always difficult, I’m convinced we are taking the right steps in the long term interests of the business, employees and our stakeholders.”

Latest from Marketing Week

Tesco, M&S, Just Eat: 5 things that mattered this week and why

m&s

M&S chief outlines digital-first strategy after profits plummet Marks & Spencer (M&S) is gearing up for a digital-first future, after its revealed on Wednesday (23 May) that profits had dropped a massive 62.1% to £66.8m compared to the previous year. A day earlier, the struggling retailer confirmed it will close more than 100 stores over […]

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

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

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big 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 are 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.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

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