Northern Foods has said it had reduced its reliance on Marks & Spencer after the consumer downturn led to an increased focus on the value sector.

The Leeds-based group, which has 900 staff at its ready meals plant in Carlisle, said discounters such as Aldi, Lidl and Netto now accounted for 20% of its sales, compared with very little business two years ago.

In contrast, M&S used to generate a third of sales but now makes up 25% of business.

A spokesman said M&S was still an important customer, but that the company was “doing more and more with discounters”. The sector has grown in recent months as the downturn in consumer spending causes shoppers to trade down.

The latest TNS Worldpanel figures show Aldi reached a record 3.2% share of the market in the 12 weeks ending December 28.

Northern Foods, which introduced products such as sandwiches and San Marco pizzas for under £1 to appeal to cost-conscious shoppers, also sells to Tesco, Sainsbury’s, Asda and Morrisons. More on this story