Premier Foods renews Cadbury cake licence to boost growth

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.

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.

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

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021