Premier Foods will cut its marketing budget in a new strategy introduced to reduce company debt.

The owners of Bisto, Hovis and Mr Kipling aim to focus spend on fewer brands where it will be more effective. According to marketing news source Marketing Week, the company has previously suffered as a result of spreading its budget too thinly across too many brands.

Marketing Director, Jon Goldstone says “If we apply bigger budgets on a smaller number of brands, the net return will be better.”

The strategy comes at a time when Premier’s debt comes in at £1.4m after having acquired the companies RHM and the Campbell Soup Company. Marketing spends will increase in some areas and decrease in others as Goldstone explains that the company aims to increase brand sales and reduce the company’s debt at the same time.

While the company debt is a detrimental factor when considering marketing budgets, the company’s tactic to focus budget on fewer brands will look to accelerate growth. Goldstone hopes that this will leverage the fantastic brand portfolio.

The brands which are  now to be the main focus have not yet been confirmed. The company is also said to be in advanced talks about the selling of Quorn.

“All of our brands have merits either in retail value, brand equity or strong growth. We have put that together to identify which ones to focus on,” continued Goldstone.

Tim Kelly, the current operating officer for Hovis will take over the Premier brand portfolio while Jon Goldstone has been appointed as part of senior management. He will take position of the company’s first chief operating officer appointed to align the structure more closely with its corporate strategy.

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