According to market analyst group Plimsoll, the UK bakery sector is to face a difficult year in 2007.  

 

 Plimsoll predicts that small- and medium-sized companies will be squeezed out of the market following a wave of high-profile mergers and acquisitions.   

 

Bakers already faced high commodity prices and increased competition in 2006. A third of the 940 companies surveyed by Plimsoll saw a drop in sales. Senior analyst David Pattison said, “I see growth in the coming 12 months remaining in the 3 to 5% slot with the small group of market leaders again capturing the lion’s share and the others increasingly playing catch-up.”  

 

 The Plimsoll report also noted a high number of new appointments in the past 18 months, which could lead to a fresh direction for several large companies.