Farmhouse Fare, the award-winning premium pudding supplier that was formed in a Lancashire kitchen in 1998 with a £250 overdraft, has been snapped up by Daniels Chilled Foods, owner of New Covent Garden Food Company, for an undisclosed sum.

Desserts made by Farmhouse Fare are now set for a distribution push. Its products are already available in a host of stores, including Asda, Morrisons, Sainsbury's, Tesco and Waitrose, but Rob Burnett, chief executive of Daniels Chilled Foods, pledged that the company's new owner would "act like its big brother".

"One of our key objectives over time is to expand the distribution of the Farmhouse Fare brand and own-label business. It is already growing fast, but we want to help expand this."

The deal marks the first step by Daniels Chilled Foods into the hot puddings market. As well as distribution, Burnett said Daniels would be able to assist with brand development and advertising, but was "comfortable" with Farmhouse Fare's NPD plans.

Helen Colley, MD of Farmhouse Fare, said: "It's the right thing for the company. Daniels Chilled Foods are brand specialists."

Farmhouse Fare had doubled its listings in Tesco in September from two to four and launched two new organic products in Sainsbury's. By the end of this month, three new lines will be launched in Booths and Waitrose.