Two Sisters Food Group has reached a licensing agreement with Premier Foods for the production, distribution, sales and marketing of its Hovis Breakfast Bakes range of breakfast biscuits.
The new agreement will run for an initial period of five years from 1 August 2013 and is said to mark an important step for 2 Sisters Food Group as it looks to continually diversify and innovate within new food categories.
The £78 million breakfast biscuit market represents the fastest growing segment of the healthier biscuits category, itself growing at 8% annually. By combining the heritage and health credentials of the Hovis brand together with the biscuits expertise of Fox’s Biscuits, both companies said that they foresee opportunities to target a genuine need among busy consumers to provide a healthier biscuit alternative and grow the category further.
“I’m delighted with this agreement as it will enable both companies to be part of a relatively new and growing category,” said Colin Smith, managing director, Fox’s Biscuits. “We see enormous potential to grow one of the nation’s favourite brands, which has such a strong association with natural ingredients and goodness, in the biscuits sector. We will look to create new varieties within the current Hovis Breakfast Bakes range as well as innovate with new products.”
“This licensing agreement is an excellent way for us to extend the Hovis brand into adjacent categories,” said Simon Devereux, business unit director, Premier Foods’ Bread Division. “By working with 2 Sisters Food Group and Fox’s Biscuits, we have a partner with the biscuits expertise necessary to take full advantage of the market opportunities.”
The three variants of Hovis Breakfast Bakes - Malted Crunch, Oats & Honey and Milk & Oats - will be manufactured at the Fox’s Biscuits plant in Uttoxeter, Staffordshire. The licensing agreement also provides for other healthier biscuit options to be developed under the Hovis brand in the future.
