Belfast Telegraph

Mr Kipling owner could raise prices as the pound falls

By Holly Williams

Mr Kipling cakes firm Premier Foods is in talks with supermarket giants over plans to increase prices after the Brexit-hit pound sent costs soaring.

The owner of Oxo and Batchelors confirmed it was considering "mid-single digit" price increases on average across its ranges, less than two months after it said it would take action to limit the impact of cost pressures on the consumer.

Premier Foods is in talks with retailers, including major supermarket chains, over the move as it battles against surging prices of important commodities since the Brexit vote sent the pound tumbling.

The group said it was looking at a raft of measures to offset these cost increases, with price hikes a last resort.

A Premier Foods spokesman said: "We look to manage our own efficiencies, adjust promotional mechanics and formats where appropriate and finally look at limited price increases where these can't be avoided.

"The situation on pricing differs between our different categories and brands and is currently under discussion with our individual retail customers.

"However, on average we are considering rises around the mid-single digit mark."

The impact of a slump in sterling since the EU referendum came into sharp focus in October when Tesco and Unilever became locked in a stand-off over the cost of key products.

Britain's biggest supermarket pulled some Unilever products from its website, including Marmite, after reportedly refusing to bow to the consumer goods giant's demand for a 10% price rise.

Belfast Telegraph

Popular