Vaughan Foods has posted a 66% rise in first-quarter sales, which rose to US$20.8m on the back of its Allison's Gourmet Kitchen acquisition.

The acquisition of Allison's added $5.6m of the $8.3m revenue increase, the company said.

Gross profit increased by $659,000 to $2m, or 9.8% of net sales. The company said that profits were hit by higher ingredient and energy costs, which were not entirely passed on during the quarter.

"We expected the first quarter to be challenging, due to normal seasonal considerations and the anticipation of rising outlays for commodities and other manufacturing and transportation costs. However, the escalation of costs outpaced our pricing adjustments," Herb Grimes, Vaughan chairman and CEO, said.  

Vaughan produces fresh-cut vegetables and fruit products and a broad line of refrigerated prepared salads, sauces, soups, and side dishes.