United Biscuits buy two Golden Wonder brands

Two of the brands rescued from crisp maker Golden Wonder were sold on to the owner of Hula Hoops and KP nuts today.

Northern Ireland-based Tayto completed the acquisition of Wheat Crunchies and Nik Naks along with the historic firm’s other products but immediately sold the two brands to United Biscuits.

In a co-manufacturing agreement, the two products will continue to be made at the former Golden Wonder factory in Scunthorpe which Tayto also bought from administrators in a move expected to save 335 jobs.

Tayto is retaining other Golden Wonder products made at the site, including Golden Skins, Golden Lights and Ringos as well as supermarket own label crisps.

It negotiated the sale of the two brands as it prepared its rescue bid for Golden Wonder, which went into administration in January.

It is understood that management felt that Wheat Crunchies and Nik Naks, which have relied on heavy marketing, were better suited with United’s deeper advertising pockets.

United also makes Mini Cheddars, Skips and McCoys crisps as well as McVitie’s Hob Nobs and Jaffa Cakes.

Managing director of United Biscuits UK, Benoit Testard said the cost of the purchase was “not a material sum” but that the brands were strategically significant.

“Nik Naks and Wheat Crunchies are well loved consumer brands and I am delighted that we will be able to add them to the UK snack portfolio,” he said.

As part of the Tayto deal, 21 staff from Golden Wonder’s Market Harborough head office will move to Scunthorpe, but 15 others have been made redundant with administrators reviewing the building’s future and a sale likely.

Last month Tayto affiliate CTO Holdings bought Golden Wonder’s Pringles Mini business, securing 195 jobs in Corby, Northamptonshire. It makes the snacks under license from Procter & Gamble.

Administrators Kroll said that in total the Tayto deals had saved 551 Golden Wonder jobs but around 270 had been lost.

The Northern Ireland firm, which employs 350 staff at its base in Tandragee, Co Armagh, recently secured a £10m (€14.6m) contract to supply crisps to supermarket giant Tesco.

Tayto managing director Stephen Hutchinson, said the sale of Golden Wonder provided “an accelerated growth opportunity at exactly the right time”.

New products and manufacturing opportunities would be introduced in the next 12 months he said.

Golden Wonder went into administration after struggling to secure enough sales to fill its factory capacity.

In 2004 it lost £10.8m (€15.7m) on sales of £87.8m (€128m) and “significant” losses were incurred in 2005.

The problems experienced by Golden Wonder came at a time when sales in the wider crisps and snacks market slumped in the UK amid growing concerns over health issues such as obesity and levels of salt intake.

Its more healthy Golden Lights range was one of the few crisps to perform well last year – along with Walkers Quavers, Walkers Lites and McCoy’s.