British baker overcomes ingredient price hikes
High street baker Greggs said today it was coping with record prices of wheat and other ingredients as it posted 5.6% sales growth over Christmas.
The sandwich and savoury maker experienced "significant" cost pressures after the price of wheat doubled in the past 12 months and coffee and milk costs rose by up to 20%.
It forced the Newcastle-based group, which operates 1,350 Greggs and Bakers Oven stores, to raise prices for some of its products by 4.5% last year.
In a market update, group managing director Michael Darrington said trading had been "satisfactory" in the second half of 2007 and over Christmas and New Year.
Like-for-like sales in the second half of last year were up by 5.8%, including a gain of 5.6% in the four weeks to January 5.
Darrington said: "The biggest issue for us is the price of wheat, which was at a recent all time high. These are the sorts of things we have to deal with in the business and we have managed to live with it."
Greggs shares held firm in a weak market today.
