Manufacturers of premium food are finding it easier to cope with raw material price pressures than those producing standard or budget products, the boss of Britain's second-biggest cake maker has confirmed.
Dave Brooks, chief executive of Finsbury Foods, admitted the rise in cost of raw ingredients had provided "strong input cost pressures" for Finsbury, which supplies cakes for Tesco's Finest and Sainsbury's Taste The Difference ranges.
However, he had been impressed by the speed in which retailers had upped their prices in-store and to suppliers.
"We have had cost pressures in bread, dairy and eggs, but we are fortunate to operate in the premium end of retailers' brands and celebration cakes, where it is less price sensitive," he told The Grocer. "We have been in constructive dialogue with the retailers who have been very co-operative in passing on the costs."
Brooks was speaking as Finsbury unveiled pre-tax profits up by a record 89% to £4.4m for the year ending 30 June, on sales up 50% to £109.8m. The figures were boosted by the acquisition of Lightbody Cakes in February, although its three main divisions - Memory Lane Cakes, its Scottish cakes business and Nicholas & Harris - all recorded double-digit sales growth.