Bakery and ingredients group Real Good Food Company (RGFC) said last week that sales in its bakery division were up 8% year on year, but sales at its Renshaw ingredients division had been slower than expected.

Interim results for the year to 30 June 2007 showed that Renshaw’s sales were worth £12m, down from £14m in the previous year.

However, sales for Napier Brown, its sugar division, were "well ahead" of last year, worth £95m, up from £81m in 2006.

"The business continues to look at opportunities to enhance its value-added proposition going into 2008," said Lee Camfield, group finance director.

The bakery businesses, Hayden’s Bakeries and Seriously Scrumptious, saw raw material price inflation, particularly within the wheat and dairy categories, which held back margin improvements.

Stephen Heslop, MD of the bakery and baking ingredients divisions, said that Hayden’s Bakeries was doing well because of its new and existing products sold through Waitrose. He said Hayden’s made 45% of Waitrose’s chilled and ambient desserts.

"Hot eating pies, Danish pastries, tarts, crumbles and cream cakes have all been doing very well at the moment," added Heslop. "Waitrose has a good category team driving these sales."

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