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.
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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.
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