Baker Warburtons has revealed it will open another bakery in the south in the next two years, as nationwide expansion continues.

Category marketing controller Sarah Miskell told British Baker it will first open a second bread line at its Enfield bakery in early 2007 to support further expansion in the south.

Miskell said: "We need one of two more bakeries, but when or where they will open I don’t know. We aim to build the first within two years and we are looking at loads of sites at the moment."

She said Warburtons has already opened depots in Thetford, Newport and Newton Abott, a structure that means it can support distribution in the southwest.

The baker claims it already has a 9.7% brand share in London.

Meanwhile a new report from Warburtons suggests the bakery category is worth over £3bn a year, an increase of 6.3% from last year.

The 2006 Market Report said bread continued to dominate bakery sales with over £1.45bn annually, an increase of 9.4% from last year, according to AC Nielsen and TNS figures.

The only sectors of bread showing value growth are brown, grains and seeded bread. White bread with the added benefit of wholemeal, such as Warburtons All in One, now accounts for 16.8% of total white everyday bread sales.

Sales of rolls are up 4.6% from last year in terms of value, but just 1% in terms of volume. For the first time, more wrapped rolls are sold than those baked in-store. The study also revealed that the Bakery Occasions category, which covers lines such as crumpets is the second largest after bread.