Premier Foods has renewed its long-standing licence to produce Cadbury-branded cake products until at least June 2017 as part of a plan to boost growth in the cake category.
The new licensing deal, which was negotiated with Cadbury owner Mondelz International, provides a platform to drive growth of Cadbury-branded cakes and desserts such as the Cadbury Mini Roll.
In addition, the contract provides for the possibility, subject to approval, of the use of the group's other trademarks for cake and dessert products.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Commenting on the renewed licence, Michael Clarke, Chief Executive Officer, said: "Renewing the Cadbury cake licence through to at least 2017 is an important step as we seek to build on the momentum in our grocery business. Cadbury is the fastest growing cake brand in the market and represents more than £60m in annual sales."
"We intend to collaborate closely with Cadbury to expand consumer favourites such as Cadbury Mini Roll as well as leverage other Cadbury trademarks over time where this makes sense. This new agreement unlocks exciting growth opportunities in one of our core power brand categories."
Premier's share price was up 2.20% to 116.25p at 09:36 on Thursday morning.
MF
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
