Hovis has lost an appeal to advertising watchdogs that a poster for rival Kingsmill bread was misleading.

Allied Bakeries’ poster campaign flagged up Kingsmill Square white bread as the biggest and best.

The ad featured a loaf of Kingsmill bread on top of a sandwich box, with the headline: ‘The most popular Square on the box’.

British Bakeries - the maker of Hovis Square - complained that the bread was not the biggest square loaf, the best-selling square-cut white loaf, or the most advertised on television.

Allied said the poster meant that the bread was the best selling and claimed the bread had sold the most units in the year ended March 29 2003.

They said however that the campaign - which ran from April 14 to April 30 - would not run again.