The cost of cake will soon be on the rise, Premier Foods, the maker of Mr Kipling and Cadbury cakes, has warned as it said the price of ingredients had shot up dramatically in the past few months. “We will have to look at it category by category ... A number of retailers have referred to justifiable and unjustifiable approaches from their suppliers. Richard Johnson, corporate affairs director, said: “We can’t say there won’t be any price increases, there probably will be next year, but we are very much in the camp of limited increases.” He said passing on price rises to shoppers would be “the last resort”. The price pressure on cake emerged as Premier revealed a 4% fall in underlying profits to £26.3m in the six months to 1 October. “This challenge [from the fall in sterling] is a bigger challenge for some of our competitors than Premier,” said Darby.

Source: The Guardian November 15, 2016 19:15 UTC