A RISING clamour for convenience foods has helped a North-East supplier increase revenues amid a challenging grocery market.

Greencore Group, which runs a factory in Consett, County Durham, says a growing appetite for its sandwiches and chilled meals has fuelled growth.

The demand pushed group revenues to £346.5m for the 13 weeks to June 26, a 6.2 per cent rise on last year, with its 39-week total up 4.2 per cent to £986.3m.

The strong results were helped by its convenience division, which saw third quarter revenues lift 6.9 per cent to £331.9m compared to the same time last year, with year-to-date revenues 5.4 per cent higher at £946.6m.

The firm’s Consett site forms part of Greencore’s prepared meals business, responsible for producing chilled ready meals, pasta sauces, soups and quiches, with its food-to-go business, based elsewhere across the UK, charged with making more than 350 million baguettes and wraps every year, as well as salads and sushi.

Bosses say the company’s easy to prepare foods were proving invaluable in a difficult industry.

A report said: “The core UK grocery retail market remains challenging with high levels of change.

“The combination of modest deflation in ingredients and packaging costs, together with price investment by grocery retailers, has resulted in value growth lagging behind volume in a number of our product markets.

“However, the group remains focused on delivering exceptional standards for customers.

“In UK convenience foods, like-for-like revenue was four per cent higher than the prior year, and the food-to-go business continued to experience good growth, led principally by the addition of new product lines.”

As well as its sandwiches, the company makes 150 million ready meals every year, as well as 200 million bottles of cooking sauces and pickles and 530 million Yorkshire puddings.

It added its US convenience division saw like-for-like revenues rise 22.1 per cent in the third quarter, compared to last year, thanks to new lines.

The firm has recovered its reputation after previously being caught up in the horsemeat scandal.

Four of its beef bolognese products were removed from Asda shelves after one tested positive for horsemeat.

However, tests carried out by the company came back negative.