Two Sisters Food Group has signed a licensing agreement with Premier Foods plc for the production and distribution of its Hovis Breakfast Bakes biscuit range.

The deal, announced today (17 July), marks “an important step” for 2 Sisters, the company said, as it looks to “continually diversify and innovate” within new food categories. The agreement will run for an initial period of five years from 1 August.

“I’m delighted with this agreement as it will enable both companies to be part of a relatively new and growing category,” said Colin Smith, MD of Fox’s Biscuits. “We see enormous potential to grow one of the nation’s favourite brands. We will look to create new varieties within the current Hovis Breakfast Bakes range as well as innovate with new products.”

The Hovis Breakfast Bakes range will be manufactured at the Fox’s Biscuits plant in Uttoxeter, Staffordshire. The licensing agreement also provides for other healthier biscuit options to be developed under the Hovis brand in the future.

Simon Devereux, business unit director at Premier Foods’ bread division, said the licensing deal will allow it to extend the Hovis brand into adjacent categories.

“By working with 2 Sisters Food Group and Fox’s Biscuits, we have a partner with the biscuits expertise necessary to take full advantage of the market opportunities,” he said.