Premier Foods
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Premier Foods plc is a British-based food manufacturer headquartered in St Albans. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Premier Foods origins were in the canned food industry. The company began to take its current shape through a series of acquisitions of established businesses, starting in 1986 with the acquisition of some tea and non-confectionery foods businesses from Cadbury Schweppes which were grouped together under the name of Hillsdown Holdings. It was floated on the stock exchange in 2004. Premier's product range includes spreads and deserts, pickles, vinegars and sauce, tea and hot chocolate, and convenience foods such as children's pasta shapes and Smash instant mashed potato. Its best known brands include Ambrosia Custard and Branston pickles. It also produces a range under the name of the celebrity Loyd Grossman.
Premier Foods was formerly a subsidiary of Hillsdown Holdings plc which was bought in 1999 by the private equity company Hicks, Muse Tate and Furst which after buying a number of brands from Nestle in 2002 sold off the bulk of the Premier Brands division in 2004. The former Premier Biscuits or Horizon Biscuit Company merged with Burtons Biscuits also owned by Hicks Muse Tate & Furst to become Burtons Foods.
Turnover for the year to 31 December 2004 was £896.8 million. Profits were £8.7 million before tax and £6.2 million after tax.
In February 2005 Premier Foods acquired from Kraft Foods their ambient desserts businesses including Bird's custard and Angel Delight.
In June 2005 Quorn was purchased and this was followed in October by the acquisition of Cauldron, consolidating the two leading brands in the meat-free category.
In October 2005 Premier Foods announced that it was selling Typhoo Tea to India's Apeejay Surrendra Group for $140 million.
In October 2005, Premier Foods Plc launched Branston Baked Beans. The marketing and promotion of this product was aimed squarely at challenging Heinz's dominance of the UK baked bean market. This marketing included an advert, featuring a Branston Bean Tin explaining how Branston Beans are very "saucy." Promotional activities included a 'Great British Bean Poll' where members of the public across the country were invited to blind taste both 'the brand leader' (assumed to be Heinz) and Branston. 76% of participants picked Branston over the brand leader. Heinz was subsequently obliged to re-evaluate its advertising strategy in the face of this aggressive activity, although in public Heinz spokespeople dismissed the challenge as a 'non-starter'.
In July 2006 Premier Foods announced its proposed acquisition of Campbells UK and Ireland businesses for £460 million. Brands included in the proposed deal are Oxo, Batchelors, Homepride and Fray Bentos
In December 2006 Premier Foods launched a takeover for its rival RHM for £1.2 Billion. This move would make Premier Foods the largest UK food company.
