NORTH-EAST baker Greggs continues to defy the tough market conditions which have forced some of its rivals in the region out of business, as soaring sales of bacon butties helped drive growth.

Greggs chief executive Ken McMeikan refused to label the company recession-proof but was delighted to note it posted a 2.6 per cent rise in sales to October 2 amid very challenging trading conditions.

Last month saw defunct Tees Valley Bakery, in Middlesbrough, auction-off its fixtures, while earlier in the year County Durham-based Peters Bakery asked its 580 staff to take a ten per cent pay cut.

Mr McMeikan said he was saddened to see established North-East bakers struggling to beat the recession, but pointed to the growing popularity of Greggs breakfast range – which will soon include croissants, pain au chocolat and porridge – as one of the reasons behind the firm’s ongoing success.

However, like-for-like sales showed only a modest 0.5 per cent increase and the company will continue to focus efforts on reducing costs to maintain its market-leading position.

Greggs has more than 1,450 shops across the UK and next year plans to strengthen its presence in the North-East by opening about five outlets and a £16m bakery in Tyneside which will operate 24 hours a day.

Its upmarket concept stores, which have been a hit in London and the South- East, are also scheduled to appear in greater numbers across the North as the firm, famous for sausage rolls and pasties, attempts to broaden its customer base and increase spend per head.

On average, a Greggs customer currently spends £2.20 per visit with bacon rolls now its best-selling sandwich line.

Plans are afoot to open a bakery in the South-West as the North-East baker looks to ramp up sales in the land of the Cornish pasty.

Any suggestion that the Greggs empire was reaching saturation point was firmly refuted by Mr McMeikan who said: “Our figures are in line with expectations and we would envisage that, despite difficult times ahead for the economy, we will continue increasing like-for-like sales.

“When times are tough people are looking for value and our fresh, high-quality products remain very popular.

“Customers have told us they also want to be excited which is why we will be adding to our breakfast range.”