Are pre-packaged sandwiches the newest economic indicator? Patrick Coveney, chief executive of convenience foods maker Greencore, believes so.
“Since last summer we have seen a marked increase in our food-to-go sales — that’s sandwiches, salads and sushi,” he said. “In the last quarter the UK sandwich market increased by just over 9% and we were well ahead of that.
“Interestingly, the smaller convenience stores have grown the business rather than the larger supermarkets.
“The economy is recovering and people are feeling more secure about their jobs. That has led to them to pop out to buy lunch rather than bring in their own home-made sandwiches or eating in the canteen.”
Greencore supplies the major supermarket chains in the UK and said it was clear that much of their growth came through their smaller stores.
Overall Greencore’s sales rose 7.2% to £320 million in the 13 weeks to December 27. That’s after knocking out sales of dairy products, a business which was sold to Muller in January 2013.
Coveney said that the group has developed “exciting new products” taking it through to 2015 and expects input cost inflation to remain at a relatively benign 3% with some pressure on meat and dairy products.
Greencore shares today jumped 8.5p to 247.6p.
