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| Branston pickle sold to Japanese firm Mizkan | |
| (about 3 hours later) | |
| Branston Pickle is being sold to a 200 year-old Japanese vinegar manufacturer for £92.5m, in the latest deal involving an Asian food business and a British household brand. | Branston Pickle is being sold to a 200 year-old Japanese vinegar manufacturer for £92.5m, in the latest deal involving an Asian food business and a British household brand. |
| Branston will join Sarson's and Weetabix in foreign ownership once the deal with Mizkan Group is completed. It will be the second transaction between Mizkan and Premier this year after the Japanese company bought the Sarson's, Haywards pickled onion and Dufrais vinegar brands in June – a month after a Chinese firm bought a majority stake in Weetabix. | |
| Kazuhide Matazaemon Nakano VIII, Mizkan's chief executive, indicated that Branston and Sarson's have not been bought as potential entrants into the Japanese food market. Japan's industrial base has been hit by the high price of the yen and domestic manufacturers have targeted foreign expansion in a bid to keep costs down, as well as using their strong currency to pursue takeovers abroad. | Kazuhide Matazaemon Nakano VIII, Mizkan's chief executive, indicated that Branston and Sarson's have not been bought as potential entrants into the Japanese food market. Japan's industrial base has been hit by the high price of the yen and domestic manufacturers have targeted foreign expansion in a bid to keep costs down, as well as using their strong currency to pursue takeovers abroad. |
| "Branston Sweet Pickle is an iconic brand that has established a market leading position," said the Mizkan boss. "The Branston brand is also an excellent strategic fit with our global portfolio and adds to our solid foundation for growth in the UK." | "Branston Sweet Pickle is an iconic brand that has established a market leading position," said the Mizkan boss. "The Branston brand is also an excellent strategic fit with our global portfolio and adds to our solid foundation for growth in the UK." |
| The deal includes the Branston sweet pickle, ketchup, salad cream and mayonnaise brands as well as the company's factory at Bury St Edmunds in Suffolk, which employs 365 people. Premier said it expected "all employees" to transfer to Mizkan once the deal is completed in early 2013. | The deal includes the Branston sweet pickle, ketchup, salad cream and mayonnaise brands as well as the company's factory at Bury St Edmunds in Suffolk, which employs 365 people. Premier said it expected "all employees" to transfer to Mizkan once the deal is completed in early 2013. |
| The deal means that Premier has exceeded its 2014 target of £330m in disposal proceeds more than a year ahead of schedule and puts less pressure on the group to sell other brands such as Angel Delight and Bird's custard. Premier had agreed the sales target with banks as part of a refinancing of its debt burden, which stood at £1.4bn earlier in the year and will now be reduced to less than £1bn. | The deal means that Premier has exceeded its 2014 target of £330m in disposal proceeds more than a year ahead of schedule and puts less pressure on the group to sell other brands such as Angel Delight and Bird's custard. Premier had agreed the sales target with banks as part of a refinancing of its debt burden, which stood at £1.4bn earlier in the year and will now be reduced to less than £1bn. |
| Michael Clarke, Premier's chief executive, who joined the group last year from Kraft, is focusing the business on eight "power brands" including Oxo, Batchelor's, Bisto, Ambrosia and Mr Kipling. Clarke signalled that Premier will now tackle its bread business, whose brands include Hovis and Mother's Pride but is facing industry-wide problems such as high wheat prices, significant logistics costs and aggressive supermarket pricing. A disposal of the bread business, where Hovis is one of the "power brands", has not been ruled out. | Michael Clarke, Premier's chief executive, who joined the group last year from Kraft, is focusing the business on eight "power brands" including Oxo, Batchelor's, Bisto, Ambrosia and Mr Kipling. Clarke signalled that Premier will now tackle its bread business, whose brands include Hovis and Mother's Pride but is facing industry-wide problems such as high wheat prices, significant logistics costs and aggressive supermarket pricing. A disposal of the bread business, where Hovis is one of the "power brands", has not been ruled out. |
| "I'm delighted to have exceeded our disposal target 20 months early while at the same time delivering three successive quarters of sales growth and taking £40m of overhead costs out of the business this year. We can now focus our attention on driving further momentum in our Grocery business and unlocking value in Bread," he said. | "I'm delighted to have exceeded our disposal target 20 months early while at the same time delivering three successive quarters of sales growth and taking £40m of overhead costs out of the business this year. We can now focus our attention on driving further momentum in our Grocery business and unlocking value in Bread," he said. |