Northern Foods sales boosted by festive goods

FOOD manufacturer Northern Foods said it grew comparable sales by 2.3 per cent in the third quarter as strong growth in its chilled and bakery divisions offset slower sales of frozen goods.
By The Newsroom
Published 13th Jan 2011, 08:44 BST

Leeds-based Northern Foods, which has agreed to merge with Ireland's Greencore in a deal due to be completed in the second quarter of 2011, said chilled sales rose by 9.7 per cent in the 13 weeks to January 1 with bakery sales up five per cent.

Sales of festive sandwiches and Christmas puddings were particularly strong, the company said.

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Frozen sales dropped 17.2 per cent as sales of Goodfella's pizza declined.

The company, which makes own-label products for retailers as diverse as premium food seller Marks & Spencer and discounter Aldi, said it remained well positioned for 2011 despite uncertain and competitive market conditions.

Northern Foods has also attracted bid interest from Indian food tycoon Ranjit Boparan, who said on December 22 he was considering making an offer for the business which would de-rail the Greencore merger.

Chicken entrepreneur Boparan, who also owns the Harry Ramsden's fish and chip shop chain, has been asked by Britain's Takeover Panel to make a firm bid for the group by January 21 or walk away.

Northern Foods said it continued to recommend the Greencore merger to shareholders.

Related topics:AldiGreencoreIrelandLeeds