Finsbury Food Group, which owns Memory Lane Cakes, has slashed its Christmas product lines in half in a dramatic exercise to boost efficiency.
The supplier said it wanted to cut costs and maximise sales of core-selling Christmas products, reducing lines from 37 in 2003 to 20 this year.
Chief executive David Brooks said: “We will supply 20 products rather than 37 in a joint initiative with retailers. Many realised we had too many products on shelf last year. We’ve reviewed our portfolio and are exiting low margin areas.” He said the casualties were all from retailer own labels.
The company claimed inability to handle a surge in demand last Christmas had contributed to a half-year pre-tax loss of £0.3m.
Restructuring and investment in production had led to modest full-year profit of £0.2m compared with £0.4m in 2003.
Sales climbed from £35.2m in the year to June 2003 to £59.9m this year.
Finsbury Food Group said it planned further npd for its Nestlé branded licensed cakes in 2004-2005.