Premier Foods to lose chairman

Premier Foods

The chairman of Premier Foods, Britain's biggest food producer has said that he will quit as soon as a replacement is found for his role.

David Kappler has held the position as chairman for six years, since the company was floated on the stock market in 2004.

He said today: "After six hugely enjoyable years at Premier Foods, I have decided that this is an appropriate time for me to stand down. Following the successful completion of the acquisitions and integration of the Campbell's and RHM businesses and the recent financial restructuring, the Group is now in a strong position and well placed for the future."

Fall in shares

Shares in the company, which also owns Ambrosia custard and Mr Kipling cakes, have fallen sharply over the past two weeks after a disappointing trading update, which warned that profits would be at the bottom end of City forecasts, British paper The Times reports.

Premier has been walking away from high volume but lower-margin own-label contracts as part of its strategy of accelerating the growth of its biggest brands, which are twice as profitable. However, the City is concerned that a rapid run down of own-label volumes will leave Premier with spare capacity and too-high overheads.

Investor confidence in the group was effected last year when Premier was forced to raise GBP£400 million in a rescue rights issue to slash its huge debt pile. A question mark still hangs over the future of Robert Schofield, Premier's chief executive, although he is thought to retain the backing of the company's biggest shareholders, including Warburg Pincus, the private equity group.

Mr. Kappler still sits on the board of Shire, the pharmaceuticals group, where he is the senior independent director, and Intercontinental Hotels, the owner of Crowne Plaza and Holiday Inn.

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