Greggs goes gluten-free with range of cakes and sweet treats

August 3, 2016

British bakery chain Greggs is set to launch new range of gluten-free food
The high street store sells more than 2,000,000 sausage rolls a week
It has had success with a range of healthier options included falafel

Laura Chesters, City Correspondent For The Daily Mail

Published:
18:52 EST, 2 August 2016

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Updated:
03:50 EST, 3 August 2016

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Bakery chain Greggs has already tried to woo health conscious diners with salads, and now it’s ready to target them with a new gluten free range.

The high street favourite, which sells more than two million sausage rolls and more than a million coffees each week, has had success with a range of healthier options including chicken salads and falafel and hummus.

Now in the autumn it will launch a range of gluten-free cakes and sweet products and if successful it will add other items to this gluten-free menu.

Roger Whiteside, chief executive of Greggs, said: ‘More and more of our customers recognise the quality, range and value we offer in these healthier food choices.’

It will launch a range of gluten-free cakes and sweet products and if successful it will add other items to its gluten-free menu

Greggs launched its Balanced Choice menu- with products under 400 calories – earlier this year with ranges including teriyaki chicken noodle salad and fruit slices.

It has helped the firm to a boost in sales, up 6pc in six months to £422million.

Currently the healthier range accounts for more than 10per cent of sales and it expects this to increase as it expands the range.

The chain now has 1,730 shops and it plans to reach 2000.

Increasing numbers of consumers are turning gluten-free as a way to cut down on bread and pasta, led by the success of diets backed by celebrities such Gwyneth Paltrow.

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Alongside the Mr Whiteside said new lines will be added and said: ‘There will be new soups and we’re going to revamp our snack range, going own-label on crisps and introducing nuts and fruits packets.’

Sneha Alexander, analyst at Verdict Retail, said Greggs was beginning to steal customers from more upmarket rivals such as Pret a Manger and Eat.

She said: ‘Greggs’ focus on providing fresh, healthy food has continued to drive growth. Its Balanced Choice range provides a number of lines that are prepared in store to ensure freshness and quality, while its efforts to meet customer demand for healthy and affordable food could attract consumers to trade down from more premium players.’

Mr Whiteside said in the future it could also expand into Mexican food and even sushi.

The high street chain sells more than two million sausage rolls and more than a million coffees each week

It has been reorganising its bakeries and distribution centres and will be closing in Twickenham and Edinburgh and instead opening a new facility in Enfield and expanding its operation near Glasgow. The changes will mean 300 jobs are being lost or moved. The costs related to the closures hit its profit growth.

Greggs said its customers had not been impacted by the vote to leave the European Union.

Mr Whiteside said: ‘There’s no sign of any impact yet, but if demand is affected we are alert and ready to react.

‘In a downturn, customers will be looking for more value, meal deals and that sort of thing, so we will make sure we tailor the offer to meet conditions. We’ll have to control costs too, but it won’t affect our investment programme.’