Global exports currently stand at 10% of overall business for Snyder’s-Lance, 1% of which goes to a number of European countries, including the UK, Germany and Spain, among others.
But Leo Fernandez, senior director of international sales at Snyder’s-Lance, said the company had aggressive growth plans for Europe.
Quadrupling Europe business
“We export about $50m a year overall and it’s a very profitable business because we have strong partnerships with our distributors,” he told BakeryandSnacks.com at ISM/ProSweets 2015 in Cologne this week.
Europe represented $5m of total exports, he said, but the company wanted to quadruple that to $20m within five years.
“That’s going to include new products. For example, we just launched Snyder’s-Lance pretzel crisps in the US but we’re using the Snyder’s of Hanover branding on pack here with that product because it’s just so strong in Europe,” he said.
Snyder’s-Lance and Cape Cod were the two brands available in Europe, the latter of which was produced in the UK for the European market.
Fernandez said Cape Cod sales would grow to $5m over the next five years.
‘Super premium’ appeal
He said Cape Cod had a great level of potential in Europe because the product resonated better with European consumers, compared to the pretzel products under Snyder. But, he added it was a “very competitive market” with the likes of Kettle, Tyrrell’s and Walkers particularly strong.
Fernandez said that despite this level of competition, Snyder’s would not be using promotional offers to gain traction, but would instead focus on the premium appeal of the US chip brand.
“In America, Cape Cod is premium and in Europe it’s super premium… We’re going to sell it, promote it and market it as a true American brand. We’re not looking to compete with Kettle and Walkers where they do promotions like ‘two for £5’. We don’t do that in the US, so we’re not going to do that here.”
The company had also worked to develop European-specific flavors for Cape Cod, he said. For example, in the UK it launched a 'sea salt and cider vinegar' variety following consumer research and close work with its UK partner.