Steps to remove hydrogenated vegetable oils, or trans fats, from processed foods is providing a cash bonanza to suppliers of the healthier ingredients being used in their place.

One, KTC (Edibles), said sales of its non-HVO shortenings and margarines, designed to replace their HVO counterparts, had soared by more than 250% since the anti-trans fats backlash began last year.

Many nutritionists believe the fats, used in a range of products including baked goods and ready meals, increase the risk of heart disease by raising levels of bad cholesterol.

A new range of non-hydrogenated white and yellow fats launched by KTC last year generated sales of just £1.9m during 2005. But sales this year are on track to be worth £7m and are set to continue rising as retailers demanding that HVOs be removed from own label lines forces suppliers to look for alternatives.

KTC sales director Mike Baldrey said: "These fats have been much in demand by multiples via their private label manufacturers, but there aren't many companies supplying them, so it's high days and holidays for us. Sales of the few items we manufactured in this area had been fairly static until 2005 then suddenly the non-hydrogenated lobby kicked in. We were lucky to be the first to offer such items, especially shortenings and margarines.

"Since then the multiples' insistence on replacement of HVOs has gathered pace dramatically. We were in the right place at the right time, which is down to my technical team."

KTC, which specialises in liquid vegetable oils, expects total turnover to rise 20% this year to £87m. Baldrey said: "It would seem, in general, that those of us who handle healthier oils and fats can expect to see further major growth."

This week the Food and Drink Federation said HVOs were being removed from branded food products worth £1.5bn a year at retail. But with retailers also banishing them from own label lines, the total figure is estimated to be much higher.