Mr Kipling and Bisto gravy maker Premier Foods (LON:PFD) said the market remained “challenging” as sales dropped in its latest quarter.
Sales to 13 July were £166.2mln, with branded sales 1.4% lower and total sales down 1.6% on the previous year.
The timing of Easter had an influence on cake and flavourings & seasonings, though a range of new ambient desserts range performed ahead of expectations.
A range of new Cadbury products, expected this year had also had “a very encouraging response from our major customers.”
Grocery sales dropped despite gravy brands Bisto and Oxo performing well, with weaker performances in cooking sauces and light meals.
The company said a trend for premium foods coincided with the launches of premium gel-based stock OxoStock pots and premium sauces Lloyd Grossman Pan Melts and Sharwood's Stir Fry Melts.
Premier added it remains on track for a sizeable reduction in debt by the year-end.
Shares were 1.75% lower to 41.75p.