03 July 2015

Rt. Hon. Elizabeth Truss Opens Mr. Kipling Cake Line

Premier Foods today unveils a new £20m production line at its Mr. Kipling bakery in Carlton, Barnsley more than doubling capacity of its fast-selling Snack Pack cake slices.

> Secretary of State unveils £20m investment at Carlton bakery in Barnsley

> Capacity of Mr. Kipling Snack Pack cake slices more than doubled to keep pace with demand and improve productivity

> Eighty new jobs created, including highly skilled roles

The new line will be formally opened by the Rt. Hon. Elizabeth Truss MP, Secretary of State for Environment, Food and Rural Affairs, marking the introduction of innovative robotic technology at the site, the creation of 80 new jobs and the wider economic benefits for Premier Foods‟ suppliers including British farmers.

The investment builds on the recent success of Mr. Kipling following its re-launch last year which included new packaging, advertising and promotions. The Snack Pack format of individually packed slices is now the fastest selling Mr. Kipling cake responding to consumer demand for more convenient „on the go‟ formats. At full capacity the new production line can produce more than 300 million Snack Pack slices a year helping keep pace with growing demand. The use of advanced robotics increases the number of pack and case sizes possible, enabling greater flexibility to meet different consumer and retailer requirements.

The Carlton Bakery, which celebrates its 40th anniversary this year, employs 750 people, rising to 1500 in seasonal periods. Around 80 new jobs will be created over two years, including a number of higher skilled roles, building on the Company‟s commitment to increase the intake of apprentices. The investment will also bring wider economic benefits given Premier Foods‟ focus on sourcing 70 % of its ingredients for the new slices, including wheatflour, sugar and glucose syrup, from UK suppliers and farmers.

Environment Secretary Elizabeth Truss said: “Our food manufacturing sector is bigger than cars and aerospace combined, generating over £100 billion for the economy. Iconic British brands like Mr. Kipling are key to its success and ensuring our food businesses can thrive is central to the government‟s long-term plan.

I‟m delighted to see Mr. Kipling investing in this new production line which will boost productivity, provide 80 new jobs and apprenticeships for Barnsley, helping ensure that the every part of Britain benefits from a growing economy.

The new line is not only a boost to Yorkshire‟s economy but will also ensure our UK farmers and producers‟ benefit from the company‟s commitment to source the majority of its ingredients from British suppliers.”

Gavin Darby, Chief Executive Officer said: “I‟m very excited about the future for Mr.Kipling. Our cake business has grown significantly over the last 9 months and the additional capacity and flexibility from this new investment will help us improve productivity and capture new growth opportunities. It‟s also a great vote of confidence in Barnsley and our colleagues at the Carlton bakery.”

Mr. Kipling is the UK‟s leading cake brand with a 17% share of the £1 billion packaged cake market. In the six months to March this year the packaged cake category grew 2.6% in value terms (1) while the Mr. Kipling brand grew by 11%. Market share is up 1.3 percentage points and household penetration increased by 2.2 percentage points.

Mr. Kipling Snack Packs were launched in 2011 and have grown quickly to become a core part of the range. Three new Milkshake flavours were recently launched to join the existing range of Angel, Chocolate, Lemon, Banoffee and Caramel flavours. All slices are less than160kcal with most under 140kcal.

1) Source: IRI retail sales value, 26 w/e 4 April 2015; Penetration: Kantar Worldpanel, 52 w/e 29 March 2015 

Read our full news release.

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