Crunch time for Aviko in The Netherlands, 'Super Crunch Oven Frites' time, that is!

Recession. What recession?

In January Aviko's share of the Dutch retail market for frozen potato products advanced by more than six points, from 43% to 49.1%. And prospects for soon grabbing a 50% or greater piece of the action are bright, figures Dick Van der Aart, marketing manager of the Steenderen, Holland-headquartered company.

Aviko's recent sales surge came with the introduction of a number of new products, including Super Crunch french fries in 750-gram bags and Potato Gratins in 400-gram boxes.

The rollouts, which began last autumn, have been positively received by supermarket operators, some of whom reportedly made room for them at the expense of a major brand competitor's SKUs.

"After just six weeks into distribution, Super Crunch products were doing so well that we adjusted our sales forecast upward by 40%," said Van der Aart.

They are available in two varieties, Hollandse and Oven Frites and Aviko believes the ovenable offering will help grow that segment of the market. Historically, 80% of fries eaten at home in Holland are prepared in deep fryers. This is mainly out of habit, and perhaps also due to consumer disappointment with the quality of oven fries previously sold from supermarket freezer cases, according to the marketing manager.

Aviko has positioned its Super Crunch twosome as "no compromise indulgence fries" which are "twice as crispy" as its standard 9.5mm fries. Furthermore, they remain warm and crispy for more than fifteen minutes after baking, thanks to a special coating formulated to retain heat longer.

Meanwhile, Aviko's range of creamy gratins, produced in Belgium at the former Eurofreez plant acquired in January of 2008, has been extended with the addition of two retail items. One features salmon and dill ingredients, while the second is flavored with Emmentaler cheese. They are available to both foodservice and retail clients.

As for the growing economic crisis that is changing the way Europeans spend their money, Van der Aart believes that sales of value-priced frozen food products such as french fries will remain steady if not rise in a recession.

"During periods of economic downturn, people tend to increase purchases of food at retail stores, as they eat out less frequently overall. Fine dining, leisure- and lodging-oriented restaurants, and cafeterias lose traffic. The B&I segment is hard hit as factories curtail production or cut hours for workers, who accordingly eat less at company canteens," commented the marketing manager.

"Quick service restaurants and casual dining places are least affected in downturns. In fact, they are on the plus side at the moment," said Van der Aart.

Overall, the marketing manager was optimistic about the future, seeing a silver lining in the economic crisis cloud. "Buyers and wholesalers are now looking more to doing business with companies that have critical mass, rather than with smaller ones that might have higher risks financially in today's credit-stressed environment," he said.

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Estimating that Aviko currently has a 24% share of the European market for frozen potato products, together with an eight percent share of the world market, Van der Aart stated that the company will to step up its international activities in 2009 and beyond.

"We rank fourth globally, and plan to grow further," he remarked. "You can look for out products to be increasingly visible in Asia, especially China, where we have a plant. Also, activity will again be geared up in the Middle East, South America and the Caribbean."