McCain is planning a dramatic move outside its potato heartland, its chief executive has revealed.
As well as considering the use of other vegetables, it was also preparing for a second foray into savoury snacks, Nick Vermont told The Grocer.
"We're looking at other areas for 2009 where we can use raw materials other than potatoes," he confirmed. "The frozen category is rightly criticised for being light on NPD and McCain can improve this."
Though the Anytime range of paninis, naan breads and baguettes was ditched earlier this year after poor sales, it was not McCain's last attempt to crack the snack market, he said. "We've been trying to access hot snacks but it's hard as there's so much available in chilled. People don't think of frozen in that way yet, so Anytime just didn't sell. But the area of informal and more convenient handheld products is certainly in our sights."
The moves come as McCain increases its marketing budget by £1m to £16m for 2008. Its investment in advertising had brought the overall chip market back into volume growth for the first time since Jamie's School Dinners hit sales in 2005, said Vermont.
McCain's premium Potato Gourmet brand would be extended with new lines later this year, he said. The Sweet Potato brand, which would be rolled out this June to the rest of the trade after its debut in Sainsbury's this month, was the start of new developments, he added. "Sweet potato is an interesting area for us."
The It's All Good strategy, launched in 2006 to reposition the company as an all-natural brand, had led to healthy growth, said Vermont. Sales were up 9% last year to £225m and the Homefries and Oven Chips brands were in double-digit value growth. They were now worth more than £80m and £60m each, he said.
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