Premier Foods snaps up Quorn owner for £172m

The deal will see an increase in the brand's marketing budget, and potentially a shake-up of Marlow's marketing arrangements.

Following the takeover, Quorn will become Premier's biggest branded product, with retail sales of £95m. It joins a portfolio of brands that includes Branston, Loyd Grossman, Typhoo and Ambrosia.

Premier has pledged to increase Quorn's adspend to maximise its growth potential. The brand will sit within the company's 'drive' portfolio of products expected to deliver sales growth of 5%-10% a year.

Premier has signalled that the acquisition will generate purchasing and administration savings of £4m a year by 2008. These could affect Farm and Walker Media, which handle Marlow's creative and media duties respectively.

Premier's main creative agencies are Clemmow Hornby Inge and Delaney Lund Knox Warren, while ZenithOptimedia handles its media account.

The company claimed it envisages 'limited' integration and intends to let Marlow continue as a standalone operation. Insiders have suggested that marketing director Guy Longworth will stay with the business.

Marlow had been planning to spend £7m on marketing Quorn this year. Its £3m summer campaign will go ahead despite the takeover.

Premier said the acquisition would provide opportunities for co-branding with its other products and that it would provide a 'platform to extend beyond the ambient category'.

This article was first published on Marketing