Convenience food maker Greencore has said the number of sandwiches sold as part of supermarket meal deals has reached record highs as it reported solid quarterly revenues.
The Irish business, which supplies sandwiches and sushi to the likes of M&S and Waitrose, said 52 per cent of supermarket sandwiches are now bought as part of a meal deal, up from 46 per cent this time last year.
The meal deal, which traditionally consists of a sandwich, a snack and a drink, was originally launched by UK pharmacy chain Boots, and is typically associated with being value for money.
Last October, Tesco upped the price of its offer by £3.50 to £3.90 and even clubcard members saw prices rise to £3 to £3.40 – the first price rise in a decade.
Many other ‘Big Four’ grocers have also upped the price of its deals, however with food prices still at record highs, its value and convenience continues to entice customers.
“The meal deal has become a “foodie phenomenon”, with over half of sandwiches sold by supermarket chains now being bought as part of a combo,” Andy Parton, chief commercial officer of Greencore ,said.
“The growth [is] being driven in particular by soaring demand for ‘premium’ meal deals, which include more luxurious items like premium sandwiches, salads and sushi,” he said.
Greencore revenues reached £495.4m in the third quarter up 1.9 per cent on the same period last year, and said it was trading in line with market expectations.
“I am encouraged by the progress made during the third quarter and that manufactured volume growth is continuing to support our top line momentum,” Dalton Philips, chief of Greencore said.
“This clearly illustrates the underlying demand for the categories in which we operate, as well as Greencore’s resilience in the current difficult consumer spending environment.”
Phillips, who was previously the chief executive of Morrisons, also said that the rate of inflation in some of its categories is now “beginning to slow”.
Greencore’s share price rose over 2.33 per cent this morning after markets opened.