Branston and Hartley's to benefit from marketing boost

LONDON - Premier Foods, the company behind brands such as Branston pickle, Ambrosia rice pudding and the Loyd Grossman range of sauces, is planning to boost marketing spend in the second half of the year and launch new brand extensions.

The company, which floated in July, released its interim results today revealing a rise in sales of 14.4% to 拢425.8m for the first half of the year.

While the sales at Premier, which also owns Typhoo tea and Hartley's jam, impressed the market, the company has been criticised in the past for not investing enough in promoting its brands.

Now it has said that it is planning to focus on what it terms "drive" brands, the brands which have the biggest growth potential.

More money will be spent on marketing in the second half of the year. Specifically this would mean extending the Hartley's and Branston brands through brand consolidation, product innovation and new product development.

Branston has already seen new product lines with a "squeezy" bottle added to the traditional jar. It also teamed up with Walkers Crisps for a limited-edition cheese and Branston pickle flavour.

Ambrosia is also set for new product development, particularly in the snacking and single-serve product area, where it faces stiff competition from Muller Rice.

The Hartley Preserves and Ambrosia accounts are retained by Delaney Lund Knox Warren, and Crosse & Blackwell, which makes Branston pickle, is handled by McCann Erickson.

Last month, Premier Foods revealed changes in its marketing function that saw the creation of two commercial director roles.

One is being taken by current group marketing director Howard Beveridge, who looks after teas, beverages, pickles and sauces, while Dominic Box, who previously had the role of general marketing manager, now oversees brands including Ambrosia, Hartley's and Gale's honey. Premier Foods retains ZenithOptimedia for its media account.

Robert Schofield, chief executive of Premier, said: "While the trading environment remains tough, the second half of the year is looking positive, where seasonally better trading, brand performance and cost cutting measures are expected to contribute to our full-year results."

Shares in Premier Foods rose by 1.7% this morning to trade at 234.9p, a rise of 3.9p.

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