It is far from ‘exceedingly good’ news for the owner of Mr Kipling – as it announced it is preparing to stockpile raw materials ahead of Brexit as concerns rise about the potential impact.
Premier Foods, which owns Bisto, Oxo and Mr Kipling, said it was having to take steps ‘in the absence of certainty over the arrangements for the UK’s departure from the EU’.
The business is expected to spend up to £10 million to prepare for the UK crashing out of the EU.
‘The group shortly intends to start a process of building stocks of raw materials to protect the company against the risk of delays at ports,’ Premier Foods announced.
It said it had spent several months looking at contigency plans for Brexit which looked at a ‘range of scenarios’ which the UK’s departure could cause.
‘As part of this, Premier Foods have a cross-functional team in place which continues to keep the possible implications to our business under review.’
It added: ‘This is purely a precautionary measure as Premier Foods, like all companies, ensures it’s prepared for any Brexit scenario.’
Premier Foods also announced it would be looking to sell its Ambrosia custard and rice pudding business following a difficult summer for the business.