Northern Foods is already taking the axe to some of its chilled food lines as it struggles to recoup losses in the sector.
Following a profits warning, announced on Monday, it said pre-tax profit for this financial year would reach only £45m, against £62.2m last year.
As part of the company's latest business review, for which an update will be delivered on May 31, biscuits and pastry ranges also face stringent scrutiny. Analysts say the review could lead to a break up of its chilled foods arm.
"We need to take cost and complexity out of our chilled foods business at a faster rate," said Pat O'Driscoll, chief executive of Northern Foods. She added: "In the last two years we have been selectively rationalising our ranges in Marks & Spencer and we are discussing similar moves with all our retail customers."
The company said it had been hit by a 12% drop in biscuit sales in January and February compared with 2005. Sales of pastry products were also down 11% for the same period. It said it was struggling with retailers' price promotions on biscuits and increased energy costs.