BAKERY chain Greggs is putting its faith in takeaway food rather than its traditional bread and rolls, the company said.

The group, which now operates more than 1,200 branches across the country, said strong demand for pre-packed sandwiches and drinks helped drive its profits up 11 per cent to £36.7m last year while bread and rolls continued to decline.

The high-street chain, which last year completed a programme to create a cohesive national brand with the renaming of its 50 Birketts shops in Cumbria, has set its sights on further growth and is aiming to add 45 new shops to its total this year.

Since the end of its financial year, on December 28, the group has also taken its first steps into continental Europe with two shops in Antwerp and Leuven in Belgium.

As well as opening more branches in Belgium this year, the group, which already has a particularly strong presence in Scotland and the Midlands, is set to expand into the South-East.

Chairman Derek Netherton who succeeded Ian Gregg in August, said the group was well placed for another year of progress.

Managing director Mike Darrington said the shift towards convenience foods had been driven by the customer.

He said: ''Our bread business is very important to us but in terms of convenience the supermarkets have got a competitive edge over us in terms of bread and rolls. But we have got convenience for the take-away foods because people don't want to get in their cars and drive three miles to get a sandwich."