Grossman's recipe offsets Quorn slide

PREMIER Foods yesterday braced investors for lower half-year profits in its meat-free Quorn division as higher marketing and manufacturing costs eat into margins.

The group, whose sprawling portfolio of brands includes Hovis and Oxo, said overall sales and profits expectations for the six months to 27 June were unchanged.

Premier assured the market that trading in May and June was in line with the first four months of the year – when the firm reported a 3 per cent rise.

Premier, whose other brands include Branston pickle, Bisto and Mr Kipling cakes, said its grocery division saw "good growth", driven by price moves and a growing market share supported by new product launches and promotional activity.

In a separate statement yesterday, the group said annual sales of Loyd Grossman sauces have increased by 14 per cent, double the rate of growth of the total sauces category.

It said its recently aired advertising campaign, in which Grossman put his Bolognese sauce to the test in Bologna, had been a success.

Meanwhile, Premier said its bread business continued to see "excellent" sales and market share growth as the group invested in its Hovis brand.