Mr Chips considers Aust link

An Australian firm has bought the Birds Eye brand in New Zealand, and may enter a manufacturing alliance with a New Zealand potato-chip maker.

Simplot Australia has acquired the brand from Unilever for an undisclosed sum, and is discussing a partnership with Mr Chips Holdings.

"Shipping frozen chips to New Zealand would be like shipping coal to Newcastle," said Simplot's chief executive, Chris Miller.

"New Zealand has a far more competitive manufacturing base than Australia, so a link-up with Mr Chips makes a lot of sense as we develop our Birds Eye brand there."

Mr Miller said that since the sale in July of Heinz's North Island plant to McCain, "numerous trade elements" had encouraged Simplot to enter the New Zealand market."

Simplot would also provide technical assistance to Mr Chips, which plans to expand its Foodservice and Fast Food restaurant business.

Mr Chips chairman Graeme Edwards said combining Simplot's technical and marketing strength with Mr Chips' local knowledge and efficient manufacturing would prove mutually rewarding.

- NZPA