Getting a pizza the action
“There is not much growth in the crisp market. We are growing at about 2%, and we have to look at developing new products to achieve further growth. There is only so much that can be done with potatoes, and we are now looking at other lines for the future,” says Raymond Coyle.
Headquartered at Ashbourne, Co Meath, the company also has manufacturing plants in Gweedore, Co Donegal, the Czech Republic and Moldova. It employs 600 people in Ireland and 150 overseas.
The Donegal plant produces extruded snacks, baked snacks, various types of popcorn and fried snacks.
Coyle says developing new products is critical for the future of the company. But it is very challenging, with a very high fail rate, requiring a lot of investment.
Tayto, Hunky Dory and King are currently the leading brands but it is questionable if sales justify the cost of supporting their Sam Spudz and Perri brands.
Margins are tight, especially when dealing with the supermarket chains which have 70% of the snack food market in Ireland and Britain.
“There has been no price increase in the UK for four years. We are at a point where we have to see a margin. If there is a negative return, there is no point in doing it,” says Coyle.
Next July, he will add pizza chips and pizza bread to his basket of products. He will also spend €5.5 million on a new research and development facility to accelerate the flow of new products, and he plans to have new vegetable and fruit-based products on the supermarket shelves in 2008.
The current range of products will be developed to suit changing lifestyles, and greater health consciousness.
Imaginative promotions are likely also, like the “Vote No 1 Mr Tayto” campaign.
Callers to RTÉ’s Liveline complained to Joe Duffy that there was an illegal campaign clouding the election issues and confusing the electorate. Local authority regulators scurried to find and prosecute the mystery candidate.
It was all in good fun, as comedian Frank Kelly got the laughs in the clever promotion for Tayto crisps.
