STAFF at a North Yorkshire firm are smiling sweetly after winning a major confectionery contract.

Food Design Ltd, which supplies ingredients like toffee and fudge to go in foods such as ice cream and cereal, has won a 45,000 euro (£30,540) contract to supply organic toffee to a major organic chocolate company in Britain.

The toffee will be used to create a new chocolate-based product to be sold in Italy.

The Harrogate-based company is hopeful if the product is a success, the contract will grow significantly.

This latest success follows hot on the heels of an expansion. Sales have increased by around 30 per cent over the last year, so the company has taken 5,500 square feet of extra warehouse space at Hornbeam Park to cope with the increase in production.

The expansion has also led to the recruitment of several new staff. Business has also been boosted by a recently-launched European marketing campaign.

Food Design has predicted it will see a further 30 per cent increase in sales over the next 12 months.

Joanne Feeney, business development manager at Food Design, said: "Most people won't have heard of Food Design. But 20 per cent of the British public will have tasted one of our sweet little things."

Updated: 10:10 Thursday, May 20, 2004