UK retailer Asda has delisted Hovis products from its smaller stores in a further blow to the bread arm of Premier Foods plc.
A spokesperson for Asda told just-food today (3 December) Premier was “having problems” delivering to its supermarket format stores and the retailer therefore decided to “use two other suppliers that could”.
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In a statement the retailer said: “Our strategy has been to move to a clear two supply bread brands in supermarkets which are Warburtons and Kingsmill. Farmer’s Loaf didn’t perform well with customers so it came out as part of a range change.”
Premier, which last week announced that some 900 jobs are to go as part of a range of measures to reshape its bread business, said it would not comment on the de-listing.
The company plans to close two bakeries, cut over 100 distribution routes and revamp its logistics operations in a bid to cut costs from its bread arm.
Premier, operating in a UK bread sector dogged by promotions and excess capacity, is trying to shake up its bread business to cut costs and improve returns.
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By GlobalDataAsda said it is “committed to working with [Hovis] as one of our key bakery suppliers”.
