Premier Foods, a UK food manufacturer which owns OXO, Bisto, Mr Kipling Cakes, Ambrosia, Batchelor, Sharwoods, Loyd Grossman and many other successful brands, has come up with a cunning plan to finance its future growth. Most businesses finance future growth by borrowing money, raising capital from its shareholders or applying some profits to the growth plans, by Premier has decided the best way to finance future growth is to raise money from its suppliers.
Premier Foods have passed the hat round and indicated that the supplier is supposed to put money into it, not for a share of profits or shares in the business, but as a payment to enable the supplier to stay as a supply to Premier Foods.
These seems to conflict with Premier Foods’ own propaganda on its web site that states
“You will find our Bread and Flours, Cakes, Convenience Foods, Cooking Sauces, Desserts and Stocks and Gravies in every British kitchen – a real testament to our vision to provide the best in British food.
We are proud of our brands and their British heritage and consciously source as many of our ingredients, goods and services from UK suppliers as we can, championing British farmers and British jobs.”
Well, we see now just how Premier Foods champions British farmers.
The “pay and stay” practice of Premier Foods might be illegal or it might be perfectly legal. I expect that the law allows it, notwithstanding the very nasty taste that Premier Foods by this action leaves in the mouth. The small farmers cannot afford to fight Premier Foods, so will submit, no doubt, to this legal form of blackmail. Perhaps the consumer, the end user of Premier Foods, can show what it thinks by avoiding any of Premier Foods’ brands, which might cause Preemier Foods to think again.