Premier Foods boss Alex Whitehouse said today a cup of Super Noodles will cost less than a pound again, as a slowdown in food inflation allows the company behind some of Britain’s best-known food brands to start cutting prices.
The cost of many of Premier Foods’ products, from Bisto Gravy and Oxo stock cubes to Mr Kipling cakes and Ambrosia custard, soared in the past year as food inflation surged to nearly 20%. But today, the firm said that falling inflation meant it could start reducing again. That starts with Batchelors Super Noodles and Mr Kipling Slices.
“At the end of quarter one we said cost inflation was at its peak. Since then we’ve seen costs, not all but many, start to soften and we’ve started reducing the cost of products for major brands,” he said.
Whitehouse said a cup of the instant noodle brand beloved by students had been selling for £1 at most retailers, but customers should expect to see the price come back down to 80p or 90p.
A pack of six Mr Kipling slices should come down from £2 to around £1.75.
Other products, such as Cadbury’s cakes, Bisto gravy and Ambrosia custard, are likely to see reductions as the year goes on.
Whitehouse said: ““We know how challenging the past year has been for many consumers and so it’s good to see the rate of input cost inflation falling. This has now given us the opportunity to lower promotional prices across a number of our major branded products such as Batchelors Super Noodles and Mr Kipling Slices.”
The slowdown in ingredient costs also meant Premier Foods upped its full-year guidance, now expecting profit to rise by 10% compared to last year, after first-half profits grew by 19% to £67.5 million. The shares gained as much as 4.1% to 136.4p, valuing the company at £1.2 billion.
