UK manufacturer Premier Foods has announced plans to stop producing private-label frozen pizza.
The move has been made as the Bisto gravy producer “doubles down on its strategy of investing in and growing its portfolio of well-known brands”.
Go deeper with GlobalData
Following the decision, Premier’s Charnwood Foods factory in Wingston, Leicester, will shut by the end of July.
The Charnwood site processed frozen pizza bases for “a small number” of foodservice clients.
Fifty-seven jobs will be cut as a result of the site closure.
In a statement, chief marketing officer Yilmaz Erceyes said: “Our brands are the beating heart of our business and the main driver behind our strong performance over the past six years. Given that focus, we are choosing to leave the market for commoditised ingredients such as frozen pizza bases, which don’t fit with our growth strategy and only contribute a very small fraction of our overall sales.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“I want to thank the team at Charnwood for everything they have done to help support the growth of our business as we continue our development as a leading producer of great food brands.”
The news marks Premier’s second closure in just over a year. In January 2023, the Ambrosia rice pudding maker announced plans to close its Knighton Foods powdered desserts and drinks plant in Staffordshire, impacting 300 people.
Explaining the rationale behind the cease of operations there at the time, the group said the factory was “not aligned to the group’s branded growth model strategy and [was] marginally unprofitable at trading profit”.
Premier’s branded portfolio includes Angel Delight whipped cream desserts, Atora beef and vegetable suet, Mr Kipling cakes and Fuel10K granola, porridge pots and high-protein beverages.
It also manufactures brands under license, including Cadbury’s mini rolls and cake bars and Loyd Grossman pasta sauces.
Premier Foods booked £494.1m ($620.3m) in group statutory revenue in H1 of its 2023/24 financial year, including Knighton Foods, a 17.7% boost on the previous year.
Branded revenue made up £416.5m of the total sum, growing 15.8% year-on-year. Comparatively, non-branded revenue reached £77.6m, a 28.7% hike on the previous full-year period.
The company’s full financial results are set to be published later this month.
