Having doubled advertising spend on its top brands in 2012, Premier Foods has started this year with a further 20% hike, targeted on Oxo, Bisto, Sharwoods, Ambrosia and Loyd Grossman sauces.
The result has been a 3.5% rise in sales of its seven core grocery brands in the first quarter, with the other two — Kipling and Batchelors — due to appear on TVs this year.
Chief executive Gavin Darby said: “What I am pleased to see is that where we have spent money on marketing we have got results. So we saw Bisto gravies and Oxo stocks do really well, as did our rival Unilever with Knorr. That’s a market which grew because of advertising.”
Darby said that he is not planning further brand sell-offs after Premier sold four big businesses for £330 million last year, cutting its debt below £1 billion. He added that secondary brands like Lyons, Paxo, Bird’s and Homepride are doing well, particularly in discount stores like Poundland and Iceland.
But bread remains difficult, with the third of the three bakeries to close with the loss of 900 jobs shutting this month.
Total sales were ahead by 1% at £327 million.
