Concerns about the stability of the euro have risen in recent months, particularly since the election of the left-wing Syriza party to power in Greece in January.
Greek debt mountain
While a short-term bail-out for Greece has just been agreed with the EU, fears remain that the euro could weaken further if a permanent solution to Greece's debt mountain is not found.
However, Premier Foods would be unlikely to suffer any worse than other food companies with a greater export exposure to eurozone countries, Darby told our sister title Food Manufacture.
“The UK accounts for 90% of our sales and, while we do export products, 92% of them are produced in factories here,” said Darby. “Of all the big food companies in the world, the one least affected by the eurozone crisis is Premier Foods. We do business in the pound and I think, for once, this is one of the challenges on the horizon for other companies.”
Plans to grow Premier’s exports to the US, Australia and China would also be unaffected by the crisis and most products would continue to be manufactured in the UK, said Darby.
Where necessary, contract manufacturers would be sought to boost exports as planned from 5% up to 15%, he revealed.