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Premier Foods responds to ‘pay and stay’ accusations

5th Dec 2014 - 10:30
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Premier Foods, BBC Newsnight, food manufacturer, pay and stay, images
Abstract
In a response to BBC Newsnight’s report that Premier Foods has been asking suppliers for payments to continue doing business with the company, the food manufacturer has issued the following statement.

“We launched our ‘invest for growth’ programme in July last year as part of a broader initiative to reduce complexity in support of plans to help turnaround the business. This included a commitment to halve the number of our suppliers and develop more strategic partnerships focused on mutual growth.

“As part of the programme, our suppliers are asked to make an annual voluntary investment to help fund our growth plans. In return, our suppliers benefit from opportunities to secure a larger slice of our current business. They also stand to gain as our business grows in the future.

“In the current challenging environment, the support of all of our suppliers is crucial. We are delighted with the positive response we have had from many who are actively engaging in building a new partnership with us, including many small companies. Indeed, many of our suppliers have seen their business grow as a result."

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Written by
PSC Team