Shareholders in food group Greencore heard today that sales in its chilled food business grew by 6.5% in the first quarter of its financial year. Chilled foods is the group's main growth category.
But chairman Ned Sullivan also warned the company's AGM that price inflation for raw materials in the UK food sector was running at 5%, the highest rate for a number of years.
He said all of the group's convenience food businesses were taking measures to offset these increases, with price increases already implemented or agreed in several categories.
Mr Sullivan said the benefits of these would be more pronounced in Greencore's second half.
