The poor quality of the UK wheat harvest has sparked concerns there will be a shortage of breadmaking wheat in 2009 - and has dashed hopes of a fall in bread prices. The Home Grown Cereals Authority (HGCA) official wheat crop survey showed that the protein content, which is vital for breadmaking, was at its lowest level for over a decade. Breadmakers will have to pay more than double the usual price premium for breadmaking wheat or add gluten to their wheat to up its protein content. "The price falls people had been hoping for are not going to happen," said HGCA director of crop marketing Alastair Dickie.

Finsbury Food Group has said that it expects its operating margin to fall by 1% to 2% for the year on increasing levels of promotional and product support and investment in its brands. The company said its margins were hurt by input costs, which remained "significantly higher" than at the start of 2007. The baked goods manufacturer said revenue for the group continues to grow, with sales for the 20 weeks to mid November 11% ahead of the same period last year - 7% of this attributable to acquisitions made during the last financial year.

Britvic is extending its partnership with PepsiCo, with plans to take on the manufacturing, distribution and marketing of Lipton Iced Tea. The news comes as Britvic reported a 14% rise in pre-tax profits in the year to September 28.

Associated British Foods has reached agreement in principle to buy the sugar operations of Ebro Puleva, a large Spanish food company, for £326m. The proposed acquisition is in line with recent comments from ABF, which owns grocery brands such as Silver Spoon sugar, Twinings tea and Patak’s curry sauces and chutneys, that it wanted to use its financial strength to expand at a time when other food companies are under pressure. More on this story

Nestlé, the world’s biggest food group, said that British sales of its Kit Kat brand had risen by 18% this year, in an overall market up 3%. Nestlé said that its share of the UK confectionery market rose by 0.5 percentage points to 15.6% this year. Paul Grimwood, managing director of Nestlé Confectionery UK, said: “Confectionery is seen as an enjoyable treat.”

HJ Heinz, The US foodmaker posted a higher quarterly profit, helped by price increases, currency hedging and strong sales in North America and emerging markets. The maker of Heinz ketchup also stood by its forecast for the fiscal year ending on April 29. Sales rose in all segments except US foodservice. Heinz is benefiting as more consumers try to save money by eating at home.