| Type | Public (LSE: PFD) |
|---|---|
| Industry | Food Manufacturing |
| Founded | 1975 |
| Headquarters | St. Albans, Hertfordshire, United Kingdom |
| Key people | David Kappler, (Chairman) Michael Clarke, (CEO) |
| Products | Foods |
| Revenue | £2.438 billion (2010)[1] |
| Operating income | £93.1 million (2010)[1] |
| Net income | £(86.7) million (2010)[1] |
| Employees | 15,000 (2010)[2] |
| Website | www.premierfoods.co.uk |
Premier Foods plc (LSE: PFD) is a British food manufacturer headquartered in St Albans, Hertfordshire. It is listed on the London Stock Exchange and is a constituent of the FTSE SmallCap Index.
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The company was founded by Harry Solomon and David Thompson in 1975 as Hillsdown Holdings. The name came from Thompson's house - Hillsdown. In 1981 it acquired Lockwood Foods, a canned foods business.[3]
In 1986, it bought various food businesses from Beechams[3] and in 1990 it acquired Premier Brands which included Typhoo and Cadbury's drinks.[3]
It was bought by the private equity company Hicks, Muse, Tate and Furst in 1999.[4] In 2002, it bought Nestlé's ambient foods business.[5] It was first listed on the London Stock Exchange in 2004.[6]
In February 2005, Premier Foods acquired from Kraft Foods their ambient desserts businesses including Bird's custard and Angel Delight.[7]
In June 2005, Marlow Foods,[8] makers of Quorn, was purchased and this was followed in October by the acquisition of Cauldron, consolidating the two leading brands in the meat-free category.[9]
In October 2005, Premier Foods announced that it was selling Typhoo Tea to India's Apeejay Surrendra Group for $140 million.[10] In March 2011 Premier Foods sold its meat-free business, Marlow Foods, to Exponent Private Equity for £205m ($331.6m). Marlow Foods manufactures and sells products under the Quorn and Cauldron brands. The sale has resulted in the creation of a new company, Quorn Foods.
Premier Foods said the deal was part of a strategy to reduce its debt, which built up following an acquisition spree that included Hovis-owner RHM and Campbell's Soup in the UK and Ireland
In October 2005, Premier Foods 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." Heinz was subsequently obliged to re-evaluate its advertising strategy in the face of this aggressive activity.[11]
In 2006, Premier Foods acquired the UK and Ireland businesses of Campbell's for £460 million. Brands included in the deal were Oxo, Batchelors, Homepride and Fray Bentos. The iconic Campbell's Soup cans had to be rebranded as Batchelors Condensed Soup (as the brand itself was not acquired) but labels still carried the label "Formerly Campbell's. Same great taste."[12] Similarly, Campbell's Meatballs were rebranded as Fray Bentos.[13] Subsequently the closure, in December 2007, of the King's Lynn depot where Fray Bentos pies are made, was announced.[14]
In March 2007, Premier Foods completed the takeover of its rival RHM for £1.2 billion.[15] In July 2007 Premier foods announced it was to close the following RHM sites: Bristol, Droylsden (makers of Robertson's Golden Shred since 1890 and Sharwood's brands), Middlewich (makers of Bisto and Salts), Wythenshawe (makers of Sharwood's Pappadoms and Paxo), Ledbury (makers of specialist jams) and Reading (Foodservices).[16]
Premier Foods' largest brands include:
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Key competitors are Unilever, Associated British Foods, Northern Foods, Greencore, Interlink and Warburtons.