Business
Announcement of JV and Trading Update
Announcement of JV and Trading Update.
About this update from Premier Foods Plc
[{"type":"text","content":"\n \nRNS Number : 8927J Premier Foods plc 18 June 2014 \n \n\n18 June 2014\n \nPremier Foods plc\n(\"Premier Foods\" or \"the Company\")\n \nPREMIER FOODS ANNOUNCES INNOVATIVE JOINT VENTURE AS PART OF ONGOING STRATEGY TO MAXIMISE VALUE FROM GROCERY INFRASTRUCTURE\n \n· Stand-alone joint venture with Specialty Powders Holdings Limited to manufacture powdered beverages and desserts\n· Improved efficiency of manufacturing infrastructure through greater utilisation of Knighton and Ashford sites\n· Separately, consolidation of grocery logistics network confirmed, reducing around 750,000 road miles by the end of 2014\n· Power Brands sales for the second quarter forecast to be negative and below the Company's expectations due to subdued grocery markets\n· Full year profit expectations unchanged\n \nPremier Foods today announces that, in line with its strategy to maximise value and efficiencies from its Grocery infrastructure, it has reached a conditional agreement with Specialty Powders Holding Limited (\"Specialty Powders\") on a stand-alone joint venture to process and pack powdered beverages and desserts at Premier Foods' Knighton facility in Staffordshire.\n \nThe new joint venture, to be named Knighton Foods, will combine dry powders manufacturing capabilities and assets from both parties at the Knighton site enabling cost synergies and scale efficiencies from greater utilisation of the facility. The agreement will also enable the transfer of two production lines from Knighton to Premier Foods' manufacturing plant in Ashford, Kent, resulting in significant further efficiencies in Premier Foods' broader Grocery manufacturing infrastructure.\n \nCommenting on the agreement, Gavin Darby, Chief Executive Officer of Premier Foods said:\n \n\"This innovative agreement will help to improve the efficiency of Premier's Grocery infrastructure and, at the same time, allows us to benefit from a dedicated team with expertise that can support our powdered beverages and desserts business. I'm delighted that, in Specialty Powders, we've found a highly successful, entrepreneurial partner who is committed to growing the combined business. This is a very positive development both for Premie...