News Potatoes
Chip company Roger & Roger expands in Hungary
The Belgian chip producer Roger & Roger from Mouscron buys a canning factory of the Greenyard group. With this step, the producer wants to strengthen its market share in Central and Eastern Europe and gain logistical advantages.
The vegetable group Greenyard is trying to reduce its substantial debts and is therefore selling a number of business units. At the beginning of this year, the group already closed its canning branch buy† Greenyard has frozen factories in Bree, Rijkevorsel and Velden in the Netherlands. The parties have announced that no acquisition amount will be disclosed.
Dual purpose
Family business Roger & Roger already has 3 frozen vegetable factories and was looking for expansion. "It is a double strategic move," said Yves De Vinck, CEO of Roger & Roger. "In addition to the production of potato and maize snacks, we also have 3 deep-frozen vegetable factories. It is therefore possible that we also process vegetables in the Greenyard factory. We are now taking the step to adapt the factory so that we can use potatoes there." can handle."
With the takeover of the factory, Roger & Roger can also take care of the affiliated growers. The CEO has visited several companies and says he is particularly impressed by the Hungarian arable farmers. "These are modern arable farmers who invest a lot, including in irrigation."
Negative news
Greenyard's production location was in negative news in 2018, after a contamination with listeria emerged. It then had to recall all frozen vegetables produced between mid-2016 and 2018. "Since September last year, production has resumed without any problems," says De Vinck. "It's a shame that this negative news is now being quoted again."
"We had been looking for a way to take a step in Central and Eastern Europe for some time," continues De Vinck. "Then came the news that Greenyard was putting factories up for sale. That suited us exactly. The biggest advantage is logistics. Our customers are growing, which further increases exports. Chips are a very light and voluminous product. It is not like French fries, Of which you can ship 22 tons in a container. A container full of chips weighs only 4 tons. Transport from Belgium to Central Europe is therefore expensive. Local production is the only solution."
According to De Vinck, this is partly the reason why the potato chips industry does not have the growth curve like that of their Belgian chip colleagues. "The growth in French fries is mainly focused on exports to Asia and South America. We cannot export there. Our segment is growing, but much flatter. Purely because of the range of action that a chip factory has."
Geographical Spread
Roger & Roger mainly obtains the required raw material from growers in Belgium (Flanders and Wallonia), Northern France and Germany. Geographical spread is necessary because of the weather extremes, although De Vinck has to admit that it was dry everywhere last year. "It is also dry in the production areas now. Rain is desperately needed, because the potatoes are just above the top. Given the expectations, I am hopeful. It is still early in the season, anything can still happen."
The Belgian company is best known for Croky, but also produces many potato snacks under a private label. In 1999, 4 entrepreneurs bought the chips branch of PepsiCo. The company is now owned by 1 family.
Niels van der Boom
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