Mr Kipling maker Premier Foods is planning to tap into the success of rivals' vegan products with its own range set to launch this year, as it hopes to turn around falling profits.

The figures

The Hertfordshire-based company said that a £20.9m profit before tax was wiped out in the year ending in March, showing losses of £42.7m instead.

Read more: Premier Foods abandons Ambrosia sale, blaming business climate

Revenue grew just 0.6 per cent to £824.3m.

The relaunch of Mr Kipling, which grew 12 per cent, was not enough to offset the loss of a sweet tooth among Premier’s customers, as sales in its sweet treats business dropped 1.4 per cent to £50.2m.

The dip was largely driven by a 35.2 per cent fall in its non-branded goods segment and issues with its move to a new warehouse.

Why it’s interesting

After pressure from activist shareholders, Premier Foods launched a strategic review of its business in February, with reports emerging that the business is likely to split.

The company said today the strategic review was still ongoing and promised an update “in due course.”

After Greggs this morning said it has tripled sales growth helped largely by its popular new vegan sausage roll, it is perhaps unsurprising to see others follow suit.

Premier Foods today said it will launch a new brand called Plantastic. The range will cater to vegan diets, but is also called a “health brand” by the company.

The range will include desserts, cake and soup, the company said.

Premier will also launch new Oreo and Freddo cupcakes, it said today.

Shares were up 0.56 per cent to 36p at around 8.30am today.

Read more: Premier Foods logistics issues leave bitter aftertaste for sales

What Premier Foods said

“This year we plan to increase investment in both capital projects and consumer marketing, with up to five of our biggest brands expected to benefit from TV advertising,” said acting chief executive Alastair Murray.

He added: “We have plans to launch an exciting new brand, Plantastic, using plant-based ingredients, in response to current consumer trends and we expect our international business to return to double digit growth in the coming year.”