UK

Mr Kipling Cakes And Other Premier Foods Items Face Price Rise Due To Brexit Vote

Better stock up.

10/01/2017 13:13 GMT

Mr Kipling cakes could become the next British beloved food item to increase in price due to the Brexit vote.

Premier Foods, which supplies British brands such as Mr Kipling cakes and Bisto gravy, said it is in talks with major retailers over a potential price rise as it seeks to offset higher costs and the weaker pound. 

British Sterling is down more than 18% on the dollar since Britain voted to leave the European Union, Reuters reports.

The drop in currency has led to a rise in the cost of imported goods and commodities priced in dollars.

The price rise is expected to be “around the mid single digit mark”, Premier Foods said.

Bloomberg via Getty Images
Premier Foods, including Mr Kipling cakes, could become more expensive following Brexit vote.

A spokesperson for the company said in a statement: “The situation on pricing differs between our different categories and brands and is currently under discussion with our individual retail customers.

“However, on average we are considering rises around the mid single digit mark.”

Premier Food’s products also include Angel Delight, Ambrosia Milk and Cadbury cakes.

It is understood the company is in talks with large retailers Tesco, Sainsbury’s and Asda.

The Premier Food spokesperson added: “We take a blended approach to managing cost increases driven by currency and commodity factors.

“We look to manage our own efficiencies, adjust promotional mechanics and formats where appropriate and finally look at limited price increases where these can’t be avoided.”

Last year Unilever demanded higher prices for its products, which included Marmite and PG Tips. 

After Tesco refused to pay the 10% increase, deliveries to the supermarket chain were halted and shelves ran short of several brands.

The dispute hit online sales in particular, with brands such as Surf washing powder and Ben and Jerry’s ice cream unavailable from the retailer’s website.

Chris Radburn/PA Wire
Unilever demanded higher prices for its products, including Marmite and PG Tips. 

In November Sainsbury’s former CEO warned that food prices could rise by at least 5% over the next year.

Justin King said between 40% and 50% of goods bought in shops is sourced abroad in currency outside the pound. As a result consumers should expect to see considerably higher prices on products produced outside of the UK.

KitKats and Nespresso pods are also not immune to a potential hike in cost as food giant Nestle said it was “considering all the options” in dealing with the growing pressures following the EU referendum.

Mondelez International, makers of Toblerone, sparked anger in November when the gap between peaks on the chocolate bar was widened. 

The controversial move was attributed to an increase in cost for ingredients, with many speculating that Brexit was to blame.