Memory Lane Cake has signed a five-year deal to turn popular Nestlé confectionery countlines into cakes and muffins.

Nestlé hopes to use the partnership with the Cardiff-based manufacturer to grow its share of the cake market to £50m by 2009.

Sales communications manager Graham Walker said: "The £1.2 billion cake market offers a serious opportunity."

The first products from the tie-up should appear early next year.