Premier Foods renews Cadbury Cake License

RNS Number : 0057U

Premier Foods plc

20 December 2012

 



For immediate release

Premier Foods plc

20 December 2012

Premier Foods plc ("the Company")

PREMIER FOODS RENEWS CADBURY CAKE LICENCE TO BOOST GROWTH

Premier Foods announces today that it has renewed its long-standing licence to produce Cadbury™ branded cake products until at least June 2017 as part of its plan to boost growth in the cake category.

The new licensing deal negotiated with Cadbury owner, Mondelēz International, provides a platform to drive growth of Cadbury branded cakes and ambient desserts including the iconic Cadbury Mini Roll. In addition, the contract provides for the possibility, subject to approval, to the use of the group's other trademarks for cake and dessert products, opening the door to a range of additional growth opportunities.

Commenting on the renewed licence, Michael Clarke, Chief Executive Officer, said:

"Renewing the Cadbury cake licence through to at least 2017 is an important step as we seek to build on the momentum in our Grocery business. Cadbury is the fastest growing cake brand in the market and represents more than £60 million in annual sales."

"We intend to collaborate closely with Cadbury to expand consumer favourites such as Cadbury Mini Roll as well as leverage other Cadbury trademarks over time where this makes sense. This new agreement unlocks exciting growth opportunities in one of our core Power Brand categories."

<ends>

For further information please contact:

Premier Foods

Lisa Attenborough, Director of Communications                               [phone]

Richard Godden, Head of Investor Relations                                     [phone]

Maitland                                                                                             [phone]

Tom Buchanan/Brian Hudspith

Notes to Editors

1.   The value of the ambient packaged cake market is £1024 million*. Premier Foods' share of the market is 24.4% of which Mr. Kipling represents 16.3% share, Cadbury has 7.2% share and Lyons has 0.9% share.

2.   Cadbury cakes grew +4.7% in value over the last 12 months compared to growth of +1.7% for the ambient packaged cake market.

3.   Cadbury Mini Rolls were first launched in 1977. The Cadbury cake range includes Mini Rolls, Cake Bars, Cake Bites, Celebration Cakes and Large & Small Cakes.

*SIG All Outlets 52 wk ending 1st Sept 2012

 

END

 

 

MSCPGGUUPUPPUBU