Finsbury Food Group has reported a 3.3% increase in year-on-year sales at its Memory Lane Cakes business for the 20 weeks to November.

Further new product development over the next six months is expected to grow the business, with strong performance from the revamped Tesco Finest and Sainsbury's Taste the Difference premium cakes ranges, chairman Lord Saatchi said at the group's agm yesterday.

Development activity has started with three further retailers and another is due to bring out its new range imminently, he added.