Premier foods then, the countries biggest food manufacturer.
Rocked by the markets as their share price dropped 22%, down to 19p.
People just don’t seem to be hungry anymore ??
The company gave one of the reasons for their profit warning was the unseasonably hot weather affecting the consumption of bread. Probably also the consumption of Mr Kipling cakes, fray bentos pies and smash.
Oh and also the loss of a significant pie contract to M&S costing it £10 million.
Oh and also the increased commodity costs resulting in £150 million additional cost.
The share price has now dropped 90% since it’s 2007 high of 300p.
But food is a cyclical business and the current consumer downturn is hitting sales of all things including food.
Ask yourself would you eat Hovis bread, Mr Kipling cakes, Branston pickle, Loyd Grossman sauces, Sharwood sauces.
If the answer is yes then you may also want to consider gobbling up some shares in Britains
http://www.dunover.com/investments/index.php?topic=1212.0
http://www.dunover.com/investments/index.php?topic=1212.0
But has to be on the belief that they won’t go bust before the British consumer starts getting hungry again.
My problem with premier foods is not whether it's to hot to eat them, but rather whether I can stay awake long enough to eat them. Their brands are dull and old fashioned and there are rival brands that are fresher and more interesting.
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