Why has Premier Foods invested in Swaziland?

City watchers have reacted with bemusement this morning to news that Premier Foods has bought a stake in two Swaziland bakeries.

Reports that Premier had invested more than £87.1M in Mr Bread and Swaziland United Bakeries arrived at a time when the firm is saddled with debt and has pledged to offload brands, rather than invest in new ones.

No connection

But the reports of the “UK-based” company making the investment have proved to be wrong. The deal has been struck not by the Hovis and Mr Kipling producer, as reported online and highlighted in a Google news alert – but Premier Foods of South Africa. This firm has no connection to the British company of the same name.

The African company, based outside Johannesburg, has a century-long history and operates 52 mills, bakeries, depots and distribution points throughout South Africa. It employs over 3,000 people.

The firm’s brands include Blue Ribbon, Iwisa, Snowflake, BB, Super Sun, Nyala, Impala and Invicta.