2 Sisters Food Group has revealed ambitious plans to overtake Premier Foods as the biggest food company in the UK within a year - and hit £3bn in sales by 2015.
The poultry giant currently lags behind Premier by half a billion pounds of sales. Premier posted sales of £2.6bn at the end of last year, while 2 Sister s reported sales of £2.1bn last July.
However, the value of Premier’s business is set to decline as it disposes of its non-core brands, while 2 Sisters has been ramping up its own label business since Ranjit Boparan’s acquisition of Northern Foods nine months ago.
A spokesman for 2 Sisters told The Grocer this week that its core poultry and fish businesses continued to deliver solid growth, but that a consumer shift away from ‘indulgent’ biscuits had led to a slip in branded biscuit volumes, while own-label had improved.
This had prompted it to increase its own-label production. “We’re not averse to doing low-margin business as long as it’s viable,” he said.
Two thirds of sales at its pizza business were currently generated by Goodfella’s and San Marco, but there had been a 6% to 7% uplift in own-label sales since July thanks to contract wins. In January it won a deal to make thin and deep pan pizzas for Tesco.
2 Sisters is also diversifying into new categories in a bid to boost top-line growth and, earlier this month, extended Fox’s into savoury biscuits for the first time.