Greencore splashes out on new factory to fuel growth in the US

 
Kasmira Jefford
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GREENCORE, the food group that supplies retailers with everything from sandwiches to Yorkshire puddings, announced plans to step up its expansion in the US as it reported an eight per cent rise in half-year revenues yesterday.

The London-listed group, whose biggest clients in the US include Starbucks and 7-Eleven, said it will spend £20m on a new sandwich factory in Rhode Island.

Greencore also bought frozen food manufacturer Lettieri’s in the period and said it will invest £6m in its Jacksonville factory helping to boost its sales capacity by £60m by the fourth quarter of this year.

The group reported a 25.7 per cent rise in like-for-like half-year sales in the US, which now accounts for around 15 per cent of the business.

Group revenues rose 8.2 per cent to £619.8m in the 26 weeks to 28 March, with like-for-like sales up 9.3 per cent.

The company, which supplies Marks & Spencer and Boots in the UK, said it is also investing £30m to expand its Northampton factory.

“Our strategy of focusing on the food-to-go market is working well in both the UK and the US,” chief executive Patrick Coveney said.

“These investments, as well as the strong trading momentum that we are seeing across our group, have left us well positioned for further growth in the months and years ahead.”