UK/CHINA: Premier signs Ambrosia deal with Swire
Ambrosia set to be sold in China
Premier Foods plc has struck a deal with Chinese distributor Swire that will see the UK food manufacturer's Ambrosia brand distributed in the fast-growing market.
The agreement, announced today (31 October) as Premier published its third-quarter sales, could be the first for Premier's so-called "power brands" in China. The power brand portfolio also includes Bisto gravy, Mr Kipling cakes and Sharwood's cooking sauces.
"In line with our strategy to expand the customer base beyond our existing channels, and where appropriate across geographies, the company recently signed a ten-year partnership agreement with Swire Foods Holdings Ltd, to distribute Ambrosia rice pudding pots in China," Premier said. "This agreement, while initially focusing on Ambrosia, may extend to other power brands in the portfolio in due course."
Hong Kong-based conglomerate Swire acts as a local manufacturer and distributor for Coca-Cola Co. and Campbell Soup Co. Swire also has a sugar business, Taikoo Sugar, and has a majority stake in Laga Industries, a packaged food company in Papua New Guinea.
Premier reported a 3% drop in third-quarter sales as "power brands" growth slowed and revenue from smaller brands, bread and own label fell.
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