BUZZ-UK food producers: elbow room in tough grocery market

** The struggles at UK supermarkets are diminishing the bargaining power they have held over food producers, a shift investors are latching on to.

** Robust earnings from food producers this week such as convenience food co Greencore & pork & sausage supplier Cranswick (LSE: CWK.L - news) show margins & earnings in good health.

** Concerns had built grocers were squeezing food producers in bid to lower prices in a bid to gain market share.

** After a Q3 pullback food supplier shares have pulled away again vs supermarkets. Chart: http://link.reuters.com/dup53w

** Suppliers running leaner after a decade excess capacity getting forced out & supermarkets in a weaker position to play companies off against one another.

** Analysts say larger food manufacturers with cash that can invest should be well equipped to hold their own if not gain market share against challenging grocery backdrop

** Miton fund manager Gervais Williams increased exposure to cake & bread manufacturer Finsbury Foods when it recently acquired bakeries group which doubled size of co (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)