Greencore looks to US as it goes into branded

Irish group Greencore could start manufacturing in the US as it refocuses its businesses and becomes less dependent on own-label supplies to the major UK supermarkets.

Tony Hynes, Greencore's chief operating officer and chief executive of the group's Convenience Foods Division, said senior executives had made "a few exploratory trips" to the US to investigate the possibilities. "Now it's about putting some dedicated resource behind that and trying to identify opportunities that might be out there," he said.

Hynes said US retailers were particularly interested in the UK's fresh food model, although he doubted there would be any firm developments for at least 12 months - and only then if there were a strong business case for the move.

Greencore, whose convenience business recorded a turnover of euro 442M in the six months to the end of March, plans to reduce its dependence on sales through multiple retail outlets and the proportion of supermarket own-label products. But it wants to increase sales in convenience stores, coffee shops, pubs and garage forecourts, said Hynes.

He predicted that within two years the proportion of sales through multiples would fall from 69% to 60% and the proportion of own-label from 90% to 80%.

Last year, Greencore, which makes sandwiches, ready meals, soups, sauces, cakes, desserts and mineral water, made its first foray into branded foods with chilled Weight Watchers ready meals, made under licence.

Also, it recently introduced its first frozen dessert under the Pudz brand and early next year plans to launch the Nothing But brand.

• See Tony Hynes interview in next month's issue.