Pre-Christmas Sales Boost Bagged by Food Giant Premier Foods

This week, Premier Foods, the food giant, is expected to announce an increase in sales when the company updates its shareholders regarding its pre-Christmas trading.

The sales of Premier Foods are tipped to increase by 2.5 percent during the third quarter to £258m, with its branded sales up by 1.6 percent.

Credit Suisse analysts stated that the cold weather last December is possible to have favoured the food categories that Premier Food specialises in. However, the update only covers the 13 weeks to December, so it will fail to provide insight regarding the performance of Premier Food over Christmas.

The majority of the sales of Premier Food are from its branded goods. However, private label sales, which are 16 percent of the mix, are expected to increase by six percent over the quarter. Sales of private label goods are growing in supermarkets, as various shoppers look for value for money on essential items.

The update follows on from the strong performance of the company in the second quarter when the food manufacturer and supplier bagged sales growth of 6.2 percent. Kantar figures revealed that supermarkets celebrated a six percent growth in food and drink sales last December, suggesting that there will be good news from Premier Foods for the fourth quarter.