Northern Foods has reorganised the management team of its struggling

biscuits business.

After disposing of nearly 40% of its business over the past year, Northern Foods has seen pre-tax profit rise 21.2% to £40m in the 12 months to 31 March.

However, the group's biscuits division, which includes the Fox's brand, has not fared so well.Northern put this down to 'a sustained increase in input costs' and a limited market share of 11%.

The company is reorganising the management team around three sectors.

Everyday biscuits,

including Fox's and Rocky bars, will be managed by Mike Driver and will expand into the 'indulgent' market, which is seeing 8% growth.

Seasonal biscuits, an area in which Northern Foods claims to be market leader, will be led by Rachel Copley.

Retailer own-brand, which includes customers such as M&S, will be run by Elizabeth Hall.

The biscuit division will continue to be run by business unit manager Graham Hunter, who has been in the role for nearly a year.

Chief executive Stefan Barden was confident there was value to be created through focusing on innovation and selected investment in biscuits.

"We are working on Fox's at the moment. The brand has a particularly great heritage in the Midlands and north east of England," he said. "We need to put innovation into this area and are looking hard at doing this. By re-focusing on the three sectors we are getting more clarity in business."

Northern Foods also revealed that sales in its salad, ready meals and pizza categories, which include the Goodfellas brand, had grown by an average of 9% since last year. Northern Foods' wet and prepared salad sales were growing at 15% annually, it said, adding that it had committed £9m to expand its salad production plant at Corby.

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