Premier Foods plc today (18 June) revealed 2014 sales of its “power brands” – including Mr Kipling and Bisto – would miss its forecast after a fall in the second quarter of the year.

The UK group said sales of the clutch of brands, which also includes Ambrosia and Sharwood’s, were “anticipated to be negative and below the company’s expectations” for the three months to the end of June.

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The news sent Premier shares tumbling. The stock was down 7.83% at 53p at 10:06 BST.

Premier, which also saw sales of the brands fall in the first quarter of 2014, blamed “subdued grocery markets”.

“The company no longer expects power brands sales to grow by 2-3% for the year to 31 December 2014, as previously indicated,” it said.

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However, Premier added its expectations for its profits were unchanged as it focuses on “managing” its costs.

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The announcement came alongside two moves to streamline the business. Premier has decided to place another batch of assets into a stand-alone venture. It will transfer its private-label and business-to-business powdered drinks and desserts businesses into a venture with Specialty Powders. Premier will own 49% of the venture.

Premier also announced it has completed the consolidation of its third-party operated grocery logistics sites from three to two regional distribution centres in Skelmersdale and Corby.