Premier cracks beans market

10 July 2006 Premier Foods said yesterday that its successful bid to make inroads into the baked bean market and take on rival Heinz would be backed by a further television advertising campaign. In a trading statement covering the first half of this year, Premier also said sales of its Quorn range were growing fast. Premier's regional presence includes factories in Wisbech, where the Loyd Grossman and Waistline labels are produced, and Long Sutton, the home of Branston Baked Beans. Premier is encouraged by the performance of its baked beans, and said the label had consolidated its market share at about 10pc in a sector worth an estimated £250m a year. In the trading statement, Premier said: "Branston Baked Beans have consolidated their market share and we are encouraged by continuing increases in household penetration and distribution ahead of further TV advertising." Sales of Quorn, an alternative to meat, showed a double-digit percentage rise after Premier spent more money on advertising and launched new products. Chief executive Robert Schofield said: "The first half of 2006 has reflected the continued success of our strategy of growing our branded sales, with Quorn, Branston, Loyd Grossman and Ambrosia all continuing to grow strongly. "Cost pressures remain an issue but we are confident the resilience of our business will continue to enable us to offset these pressures." The company said it expected like-for-like sales growth to be in line with its targets. The company said in May that it was thinking about buying part of either United Biscuits or the UK businesses owned by Campbell's Soup, whose British operations include a factory in King's Lynn. US-owned Campbell's is expected to announce the outcome of its auction process shortly. Source: EDP