Finsbury Food Group has reported an 11% decline in cake sales in the first eight weeks of 2010, as consumers continue to trade down.
In its interim results for the 26 weeks to 2 January, 2010, the country’s second-largest cake producer reported an 8% fall in like-for-like cake sales to £65.3m, with an 11% decline in the following eight weeks.
The company blamed the downturn on changes in shopping habits caused by the recession, with consumers trading down from Finsbury’s premium cakes to cheaper alternatives and taking advantage of supermarket promotions.
However, chief executive John Duffy told BB he was confident the market for own-label value-added cakes would bounce back in the second half of the year.
Group revenue at Finsbury for the second half of last year was £82.9m, a fall of 7% (£6.2m) on the previous year, while profit before tax was flat, at £1.8m. Sales in its bread and free-from division rose by 14% to £17.6m.
Read the full story in the next issue of British Baker, out 26 March.