Sharwood’s and Loyd Grossman brand owner Premier Foods has secured a product development agreement with oils and fats producer Aarhus Karlshamn (AAK UK).
It is expected the exclusive three-year deal will see the businesses work together to improve existing Premier products and potentially reduce levels of fat.
Premier, which has worked with AAK for more than 20 years, said the development of long-term partnerships was “an excellent way to ensure we can continue to innovate in support of our brands”.
“We are looking forward to working more closely with AAK, whose relevant technical skills are of the highest possible calibre and whose products and technologies can be found in every food category across every region of the world,” said Premier Foods group procurement director Mark Hughes.
AAK is based in Malmö, Sweden, but has production facilities in the UK, Mexico, the Netherlands, Sweden, Uruguay and the US. It is organised into three areas: Food Ingredients; Chocolate & Confectionery Fats; and Technical Products & Feed.
“Health, sustainability and manufacturing efficiency are key concerns for the food manufacturing sector,” said AAK UK managing director Martin Craven. “We believe these can be most effectively addressed in the context of a committed partnership between supplier and manufacturer.”
Premier Foods last week confirmed it was looking for an investor for its bread business, which includes the Hovis brand. It has appointed financial advisors Ondra Partners to develop “investment options” for its bread division, including that of a joint venture. “There can be no certainty that a transaction will follow at any point in the future, but the company will provide updates as appropriate,” Premier Foods said.
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