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Premier Foods (PFD) will unveil a new £20m production line at its Mr. Kipling bakery in Barnsley later today. The investment is set to more than double capacity of its Snack Pack cake slices – launched in 2011 and now a core part of the supplier’s range – with the introduction of robotic technology at the site.

Premier Foods said the move would create 80 jobs over two years, as well as having wider economic benefits for its suppliers, including British farmers, thanks to a commitment to source 70% of the ingredients for the slices from the UK.

At full capacity the new production line can produce more than 300 million Snack Pack slices a year helping keep pace with growing demand for the product. The Carlton Bakery, which celebrates its 40th anniversary this year, employs 750 staff, rising to 1,500 in seasonal periods.

Shares in Premier Foods were up 9.3% yesterday ahead of the announcement to 41.3p.

Premier CEO Gavin Darby said: “I’m very excited about the future for Mr. Kipling. Our cake business has grown significantly over the last nine months and the additional capacity and flexibility from this new investment will help us improve productivity and capture new growth opportunities.”

Environment secretary Elizabeth Truss, who will formally open the line, added: “The new line is not only a boost to Yorkshire’s economy but will also ensure our UK farmers and producers’ benefit from the company’s commitment to source the majority of its ingredients from British suppliers.”

Morning update

Waitrose weekly sales, excluding fuel, increased 2.3% year on year to £126.2m as the supermarket saw a “very positive” customer reaction to its new ‘Pick Your Own’ offer’ scheme. Finance director Tom Athron added there was also a particularly strong performance across outdoor ranges in the week ended 27 June. The start of Wimbledon also pushed up sales for strawberries and cream, with strawberry sales up by 15% and cream by 9% compared with the previous week.

Distil, the AIM-listed owner of premium drinks brands Blackwoods, RedLeg Spiced Rum and Blavod Black Vodka, said ahead of its AGM later today that the new financial year had started well.

Volumes and revenues were “strongly” ahead of last year as the key brands gained greater exposure across a wide number of sales and distribution channels in the UK and overseas.

Plant Impact has announced the launch of a product which it claims improves cocoa yields under stressful growing conditions. BANZAI is based on the AIM-listed agricultural bioscience company’s Alethea technology. Arysta LifeScience Africa, India and Middle East will become the exclusive marketer for the product in the cocoa-producing countries of Ivory Coast, Ghana, Cameroon, Nigeria and Togo, which account for more than 70% of total global cocoa production. This is Plant Impact’s first crop enhancement product for cocoa and the company said it had the potential to add significant new revenue streams.

Yesterday in the City

Magners owner C&C Group (CCR) slumped 3.5% to €3.41 yesterday after a subdued trading update. It reported weaker-than-expected trading conditions in the first quarter but forecast a gradual improvement in core market performance as the year progressed.

Two of the three listed grocers continued to slide following the latest round of Kantar figures on Tuesday. Tesco (TSCO) fell 1.4% to 209.6p and Morrisons (MRW) was down 0.3% to 180.2p and Sainsbury’s (SBRY) nudged up 0.4% to 266.4p. Tesco shares have fallen 4.1% since Tuesday, followed by Sainsbury’s, down 2.9%, and Morrisons, which had a more volatile week with ups and downs, also falling 0.8%.

Ocado (OCDO) continued its rise to highs not seen since the stock hit 600p back in February 2014. Its shares were up 2.9% yesterday to 458.9p following on from the half-year results on Tuesday showing sales had grown by more than 15%.

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