Premier Foods sells vinegar and pickles to Japanese

Struggling Premier Foods said it was selling its vinegar and soured pickles business for 41m pounds.

The business, which includes the Sarson's, Haywards and Dufrais brands, will go to Japanese firm Mizkan and the deal is expected to complete by the end of July.

Premier is currently re-focusing its business to centre around eight 'Power Brands', including Hovis, Oxo and Mr Kipling.

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The Sarson's and Haywards brands are the leaders in their respective categories of malt vinegar and pickles in vinegar while Dufrais is the number two brand in speciality vinegar, Premier said.

The brands are predominantly manufactured at the group's Middleton factory, near Manchester, and all employees at the site are expected to transfer to the buyer following an appropriate consultation process.

Michael Clarke, Chief Executive of Premier Foods, said the sale was another important step in the firm's strategy to focus on its Power Brands.

"I'm delighted that we have found a buyer such as Mizkan," he said.

"Our vinegars and sour pickles business and employees will greatly benefit from being part of a global player focused on vinegar and liquid condiments."

Kazuhide Matazaemon Nakano VIII, Chief Executive of Mizkan, said the brands fitted well with his company's global portfolio, were an excellent strategic fit and provided a solid foundation for growth in the UK.