Premier Foods has announced that there are discussions over the sale of its Devon-based custard brand, Ambrosia.
The factory currently employs more than 300 workers in its Lifton factory which was founded in 1917.
The announcement follows the release of the company's half year results.
The UK food group also owns brands Mr Kipling and OXO.
Premier Foods boss Gavin Darby will also be stepping down as CEO in January.