Discount Stores Flourish at the Expense of Premier Manufacturers

It is not just the other supermarkets that are falling victim to the success of discount stores like Aldi and Lidl. These cheaper alternatives have caused profit losses for food producers of the four main supermarkets in the UK.
Premier Foods is responsible for the production of a lot of labels we are all familiar with in our homes, including some of the Mr Kipling products, Ambrosia, Birds, and some Cadbury’s chocolate products. They have experienced losses however as the tasty foods they make are not making it off the shelves in the major stores.
A 6.2% drop in their quarterly sales has set the company back a bit, although their outlook for the “year remain unchanged. While trading conditions are expected to remain challenging, [they] have a strong programme of new product launches and consumer marketing planned” according to their website.
Meanwhile, Aldi continue to spread and have opened up a new outlet in Cullompton in Devon, and their share of the market still seems to be growing. The lack of people buying Premier Food’s goods from places like Asda and Tesco show that people are either giving up on paying for treats, or are going elsewhere to find cheaper deals.