With a combined total of £2.6bn, the cakes and biscuits market represents an important chunk of grocery expenditure. In biscuits, a distinct polarisation has occurred over the last few years with traditional offerings (such as everyday biscuits, down 6% in value) coming under downward price pressure and little innovation, while more attractive sectors such as healthier, up 13%, are growing significantly. Brands clearly have a strong role to play in this new polarised marketplace ­ with all of the top five growing through strong innovation and a reinforcement of their premium offering. Kit Kat retains the number one position after the success of the mini Kit Kat Chunky offering, while similar developments from Twix have reaped their rewards. Innovation of the rice cake sector from a little loved health food, to the ultimate in "healthy" savoury snacking has seen Quakers' Snack a Jacks find a place in the top 10 for the first time. Retailers are continuing to develop a low price offering on staple goods, while using promotions to pull consumer demand at the top end of the category through multibuy promotions. This has resulted in Tesco driving growth, up 7%, and maintaining the number one retailer position. Cakes Cakes has seen a similar polarisation, with value growth returning in 2001 thanks to the resurgence of the chilled sector, marketing innovation and above the line support from the brand leaders, and innovative price promotion in Asda. With value growth of 4% on sales over £1.1bn, this deeply fragmented category shows similar patterns to that of biscuits, with convenience formats, healthier options and indulgent luxury products all driving growth. Brands which have done particularly well include Mr Kipling, whose growth has come from redesigned packaging, convenience formats and new advertising; Cadbury's which has increased its popularity with kids through licensing; and Entenmanns. Tesco has held its own as market leader over the last 12 months. However, Asda's performance is the most interesting. Taking an aggressive EDLP strategy of three packs for £2 on the top brands' key SKUs, Asda has convinced more consumers to buy more packs per visit more often, producing a category growth of more than 20%. {{FOCUS SPECIALS }}