Waitrose tucks in to cakes from Kate's

Sussex-based Kate's Cakes has persuaded the company to stock a range of its products, including Choc 'n' Nut shortbread and Mocha brownies.

Waitrose, which is owned by the John Lewis Partnership, will trial the cakes in 30 stores before introducing the range to all of its 165 supermarkets across the UK The deal follows a relaunch of Kate's Cakes own-brand products, which has included new-look packaging and an updated logo.

Managing director Steve Greenhalgh said: "The Waitrose deal is really big news for us and will help us strengthen the Kate's Cakes brand, which has been neglected.

"Our business has grown from a turnover of £2 million to £18 million in the past three years by targeting blue-chips but consumer recognition of Kate's Cakes has not increased."

That is because almost 90 per cent of the company's turnover comes from "unbranded" items it makes for coffee house chains including Costa Coffee, Starbucks and Cafe Nero.

The company also supplies Mark & Spencer's Revive cafes.

But it is now focusing on breathing new life into the Kate's Cakes brand, which sells through wholesalers to independent coffee shops and the Upper Crust chain.

Kate's Cakes was established 16 years ago by Londoner Kate Cherkoff, who started by baking all the cakes herself from her flat in Clapham.

It now employs 300 people at the Wiston Business Park in London Road, Ashington, near Storrington.

All the cakes are still handmade, using natural ingredients and avoiding unneccesary additives, while a luxury range is made with fair trade ingredients.

Mr Greenhalgh, who bought the business three years ago, said he hoped the Kate's Cakes brand would eventually account for 20 per cent of sales.

He said: "It is important that our values are clearly communicated to our customers and credibility offered through the brand's values and ethos.

"We need to keep the business moving forward and relaunching our own brand is key to our success."

Wednesday, July 13, 2005