Premier Foods credits TV advertising for sales boost in Christmas quarter

Group’s branded sales up 16% over nine months since start of pandemic.

Ambrosia: returned to TV for the first time since 2016
Ambrosia: returned to TV for the first time since 2016

Premier Foods has credited its TV ad campaigns with making a significant contribution to the sales of its leading brands in the three months up to Christmas, as it reported branded sales for the quarter up 12.1% year on year.

It was “another period of exceptional growth”, chief executive Alex Whitehouse said – although over the first three quarters of the company’s financial year, starting in late March, it grew branded sales by a more impressive 16%.

“We continue to deploy our branded growth model strategy, launching a series of new products in the quarter, such as Sharwood’s low-sugar stir fry sauces and supporting five of our major brands with TV advertising,” Whitehouse added. 

“Together with excellent execution both in-store and online, we continue to take market share in volume and value terms. Online sales were up 90% in the quarter, ahead of the broader channel and we saw higher household penetration for brands such as Bisto, Oxo and Paxo, as more meals were eaten at home this Christmas.”

Premier Foods was now expecting a trading profit for the full year of between £145m and £150m, Whitehouse said.

The five brands advertised on TV include cake brand Mr Kipling and custard brand Ambrosia, which returned to TV for the first time in four years with a new campaign by McCann.

The business said that Bisto and Batchelors, which have increased TV spend, had both recorded “healthy double-digit sales growth”. Sharwood’s, meanwhile, boosted sales 40% in the quarter in the back of its new product launches. Premier Foods is likely to launch a TV campaign for the brand in 2021, chief marketing officer Yilmaz Erceyes told Campaign last month.

Premier Foods added: “Following the delivery of another strong period of trading, the Group will continue to increase its investment in brand advertising and has further new product development planned for quarter four.”

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