Sales tumbled 11% to £13.9m at snacking brand Fruit Bowl in 2015 as volumes declined in the challenging grocery market.

The business, which was acquired by South African cereal manufacturer Pioneer Food Group for £7.5m in the summer, said despite the decline gross profits increased 9% to £4.7m thanks to changes in the sales mix and tight control over costs.

However, operating profits slipped £100,000 to £400,000 in the year as marketing spend rose and promotional costs ate into profitability, accounts filed at Companies House by parent company Stream Foods showed.

“The directors continue to be focused on further developing customer relationships and providing high service levels,” the accounts added.

“The company continues to focus on new product development and manufacturing processes to deliver sales and profit growth, despite the current difficult trading environment within the UK food industry.”

Rival fruit snacks brand Bear also put pressure on the top line as it continued to win market share in the category. Bear parent Urban Fresh Foods increased sales 37% to £22.5m in the year to 31 October 2015. Value sales declined 38% at Fruit Bowl compared with a 20% rise at Bear in the 52 weeks to 18 June 2016 [IRI].

Fruit Bowl was the last remaining brand in the Wellness Foods group before it was sold to Pioneer. Wellness also sold off Rowse Honey, Dorset Cereals and Orchard House in the past two years.

Pioneer said its acquisition of Fruit Bowl was part of a plan to bolster its UK branded product range.

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