Premier Foods plc, the UK group behind brands including Bisto and Mr Kipling, is in talks with retailers over the possibility of raising prices on its products to cover increased costs in the wake of Brexit.
Gavin Darby, Premier’s CEO, has referred to the company’s “blended approach” to mitigate the pressure the fall in the value of sterling has put on its raw-material bill. Speaking to City analysts in November, Darby intimated Premier may have to up prices but said the company would first look at areas such as depth of promotions or pack formats.
It has emerged Premier is now in discussions with retail customers that could lead to price increases. A Premier spokesperson said: “We take a blended approach to managing cost increases driven by currency and commodity factors. 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.”