by Rachel Sanderson

Cakes and fashion may seem an odd coupling, but despite appearances food is emerging as a new frontier for luxury goods.

Sales of "Made in Italy" €1000 handbags and €700 shoes may be slowing amid falling demand from Chinese buyers and austerity-minded US and European consumers. But premium Italian foods – from raisin-filled Christmas sponge cakes to Parmesan cheese and gianduja hazelnut chocolate – have become a feeding ground for investors looking to jump into the global trend for eating well.

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Source: http://www.afr.com/