Premier Foods PLC (LON:PFD) joined Pearson in the doghouse after an equally uninspiring trading update.
Profits will be 10% lower than previously expected due to weak third quarter sales.
The Mr Kipling, Bird’s and Ambrosia brand owner has been trying to raise prices to offset the impact of the weak pound on raw materials such as sugar and palm oil but has met resistance from supermarkets.
"Recovery of significant input cost inflation in certain areas is taking longer than originally foreseen," said Gavin Darby, chief executive.
Sales for the period to Christmas were 1% lower at £251mln, with branded sales down by 3.8% and non-branded revenues up 11.6%.
Volumes though were 3.4% ahead, underlining the price pressure Premier is facing currently.
“Bisto, Oxo, Loyd Grossman, Ambrosia and Batchelors all delivered volume and value market share gains in the quarter and sales of Loyd Grossman sauces increased due to continued success of the Gastro pouches range.”
A £10mln cost saving programme is underway that will kick in during the next financial year.
Shares fell 15% to 40.7p.