Despite maintaining sales of £362m in 2021, Hovis has seen a 73% drop in profits due to rising costs of ingredients and utilities. However, announcing its results, the bread and flour producer said that it was still ‘the best-performing major brand in bread during the last 12 months through a combination of enhanced products, distribution gains and consumers reverting to brands they trust.’ Its Hovis Soft White, Hovis Seed Sensations, and new product range “Bakers Since 1886” backed by celebrity chef Tom Kerridge, performed particularly well.
In September, Hovis’ CEO will step down after eight years. An interim CEO has been appointed until a successor is sourced. Hovis also waved goodbye to its head of marketing and head of insight & innovation last year. The outgoing CEO said that the bread brand ‘is now poised for its next stage of growth’.
Hovis was acquired by PE firm Endless in November 2020 and hasn’t called for an agency review since. With new hires imminent and a mission to protect its dwindling profits, the business will need to invest in its marketing to ensure consumers choose its products for their household staple.