'Chip potato must yield better than French fries variety'

The potato chip has its own laws and regulations in cultivation, logistics and the sales market. Nevertheless, the Belgian Roger & Roger, the producer of Croky, among others, has to keep up with developments in the French fries market in cultivation contracts.

A poster with an orange-clad Yolanthe Cabau who, seated on a couch, promotes Croky's chips. With the wall decoration, part of an advertising campaign for the European Championship football in 2012, the entrance of Roger & Roger's head office in Mouscron immediately has a Dutch touch. The slogan of this campaign: 'Sponsor of all bankers', however, does not apply to Yves de Vinck, the company's CEO.

Sitting on the couch is one day out of the question for the CEO of Roger & Roger. The company not only processes more than 120.000 tons of potatoes into chips on an annual basis, but also has 2 companies in frozen vegetables. Both branches are managed by De Vinck. Roger & Roger sells approximately 35% of the annual production of chips under the brand name 'Croky' and the remaining 65% is sold under private label to retailers and other buyers.

Circles in Europe
Just like in the table segment, the crisps market has its own laws and regulations compared to the French fries chain. Major differences are in the final end product and logistics. After all, a bag of chips weighs little. De Vinck illustrates: "A full semi-trailer with chips weighs about 4 tons, while that is 22 tons for chips. The total turnover of the semi-trailer chips is low. That gives a completely different dynamic to the valorisation."

The further the chips are transported, the faster the cost price increases. According to De Vinck, this means that the sales market for every chip manufacturer in the European Union is within a radius of 400 to 500 kilometers from the factory. "If you draw this on a map, you will see all kinds of circles in Europe."

Every country has a taste palette
Taste plays an important role in the market. Roger & Roger produces chips in more than 150 flavors. "Each country has a specific taste palette", explains De Vinck. "Paprika and bolognese are popular flavors in the Netherlands, but we don't sell them in Great Britain. Flavors such as Salt & Vinegar and Cheese & Onion are in demand again. Croky obviously has its own unique flavors."

In addition to price, logistics and taste, other conditions play a role in the competitive battle in the crisps market. Every customer has his own packaging preference. "Some want boxes, so you can quickly grab the bags. Others place the whole box on the shelf and want to be able to turn the lid of the box into a presentation window. Logistically, this sometimes presents our planners with some challenges."

Hungarian campaign in 2020
Croky is mainly sold in the Benelux, where competition from market leader Lays is fierce. The family business did announce last summer that it would also produce chips outside Belgium. In Hungary, for example, the company has bought a factory from the vegetable processor Greenyard. That location is now being converted into a factory where not only chips, but also frozen vegetables can be made. The plan is that the first chips will be produced there from the 2020 campaign.

With the investment, Roger & Roger is expanding its sales market. "A new circle will be created in Eastern Europe, from which we can supply the customers in Hungary and the surrounding countries with chips. This is a challenge, because the competition in this market is high. However, with the knowledge and skills that we bringing it from here, both on the market and the cultivation, should be possible. Many of our customers are also active in retail in Eastern Europe."

In countries such as Germany and France, many regional brands dominate the market. "To intervene with a brand like Croky is too great a marketing effort for the return that can be achieved," explains De Vinck. For that reason, Roger & Roger will not introduce the Croky brand on the potato chip market in Eastern Europe.

Spreading cultivation risks
Roger & Roger works for the raw material supply together with growers from Belgium, the Netherlands, France and Germany. The growers sign a hectare contract, for which Roger & Roger purchase the entire harvest. In view of the specific wishes of the chip potato, the field yields cannot be compared with those of French fries potatoes. "A Fontane or Challenger yields an average of 55 tons, our varieties do well with 40 tons."

The latter is partly due to the shape and specific properties of potato chip varieties. They have a high dry matter content (to prevent them from browning too quickly) and should be particularly round. "Preferably as round as a tennis ball," says De Vinck. "That way we can make full use of the potato when slicing and that gives the best value." Roger & Roger has set up its own program for breeding the varieties, in which the company grows 10 to 12 varieties every year.

Free from defects
Roger & Roger's potato campaign starts in the second half of June, when the early potatoes are sourced from the Bordeaux region. From there, the landing period in northwestern Europe begins in July. In addition, part of the potatoes is also stored for a short period at the grower.

The company therefore has the cultivation closely monitored. If a batch shows defects earlier than the planned processing, this will be brought forward in the schedule. "We sample the potatoes throughout the season, paying particular attention to the baking color and defects. The final product has to be perfect and, moreover, we cannot afford to lose out. Not even to the grower."

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Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

e.delijster@boerenbusiness. Nl

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