Signs that UK consumers are turning back to convenience food is helping Irish food group Greencore boost sales, the company told just-food today (13 August).

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Demand for certain convenience lines, including pre-prepared sandwiches and ready meals had stuttered late last year and in the first quarter of 2009 in favour of scratch cooking, Eoin Tonge, Greencore capital markets director, said.


However, while Tonge acknowledged that anxiety over the economy remains, Greencore, the UK’s largest sandwich maker, was starting to see consumers again shopping for convenience food.


“Consumers are still looking for value in their purchases but things are still better than they were at the back end of last year,” he said. “The reality is that people have gone back to more regular purchases of convenience food.”


Earlier today, Greencore said improving sales in the UK had helped boost group revenues in the four months to 24 July.

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Sales from Greencore’s continuing convenience businesses was up 2.5% on a constant-currency basis to EUR278.1m (US$396.7m).


UK convenience sales had risen by 1.8%, with demand for in food-to-go, prepared meals and ambient cooking sauces offsetting falling sales of cakes and desserts.


Greencore also said its position as a private-label supplier was helping it meet consumers’ continued desire for value.


The group, which serves all of the UK’s largest multiples, has been working with its customers to improve and expand its private-label supplies, Tonge added.


“It’s about working with customers to confront the challenging environment we are in,” Tonge said.


Greencore has improved its full-year earnings forecast, with the company predicting that it expects operating profit to be “modestly ahead” on the year on a constant-currency basis.