Premier Foods to double Mr. Kipling slices production at Carlton site

UK-based Premier Foods is set to double the production of Mr. Kipling Snack Pack slices at its manufacturing site in Fish Dam Lane in Carlton, Barnsley, with an investment of £20m.

The move is a part of the company’s strategy to cater to the increasing demand for its Snack Pack format of individually wrapped slices.

Available in six varieties, Mr. Kipling Snack Packs were launched in 2011, to provide a convenient, on-the-go format for lunchboxes and in-home eating occasions.

The latest project involves an addition of a new production and packing line, including a mixing station, oven and sophisticated packing robotics, which will allow the company to produce 300m cake slices each year.

Carlton’s factory general manager Jason Ramsay said: "This investment is a strong vote of confidence by Premier Foods in the Carlton site and the Carlton workforce.

"We have been manufacturing Mr. Kipling cake at Carlton since 1975 and this latest news is a huge boost for all of us."

Meanwhile, Premier Foods is reportedly in talks with US-based private investor Gores to sell a stake in its struggling Hovis bread business.

The debt-laden UK firm has already restructured the bread unit to shrink its capacity, while eliminating about 1,000 jobs.

In 2013, Premier shut three bakeries and two mills after losing a number of own-label contracts.

The company is also in talks with trustees of its pension fund and banks over a refinancing strategy, which will help the company lower its debt.

At the end of June 2013, Premier had net debt of £890m, pension deficit of £394.7m and pension liabilities of £3.65bn.

---

Image: the expansion will allow Premier Foods to double the production of Mr. Kipling Snack Pack to 300mi cake slices per year. Photo courtesy of Premier Foods.