Production is to be cut at Finsbury Food Group’s premium cake business Memory Lane Cakes, as sales continue to fall in the recession.

The bread, cake and morning goods manufacturer said production at the Cardiff business is likely to be cut from seven to five days a week.

A consultation with employees is currently taking place on changes to shift patterns, with 95 jobs out of Memory Lane’s 1,000-or-so staff at risk. This represents 4% of Finsbury’s total workforce of 2,500.

Memory Lane is the leading manufacturer of the UK retailers’ premium own-label cake ranges. Martin Lightbody, chairman and major shareholder at Finsbury, told British Baker: “There is a general decline in cake sales, including premium, and we have been at the forefront of premium, especially celebration and upper-tier cakes.

“The number of products sold on deals this year increased dramatically, so we have been looking at cost-cutting over innovation. We must show our customers that we can produce excellent products again.”

Read the full story in the 18 December issue of British Baker