One of UKs largest food producers, Premier Foods (PFD. L) announces a third quarter downshift, as sales were down by 4.2% to £606 million. The fall period has been reported to be the toughest for the company.

Due to the duplication of wheat prices this year that was caused by huge draughts and fire losses oh harvest in Russia and a dispute with Tesco, the company had to drop 11 of its Hovar bread supermarket lines. As Tesco has a
31% share of the supermarket, Premier lost thousands of pounds every week. A changing consumption behavior that caused a decrease in non-branded food consumption serves as additional explanation.

Clive Black at City firm Shore Capital states: "This is a big deal for Premier.”Tesco won't run out of bread but Hovis is missing out on sales in the biggest supermarket in the country. They will also be losing out to their rivals Warburton's and Kingsmill."

In total, a Reuters poll of 12 brokerages and banks demonstrates that the company is expected to report full year value before interest and a of 304 million pounds tax sum.

Spokesperson of the company, state: "We cannot comment on our commercial agreements with suppliers. We always look to provide our customers with great value bread."