J.R.Simplot: Starter Strategy

 
The Netherlands-based subsidiary of US potato giant J.R.Simplot is pursuing a focused strategy. Its starter and appetiser products – mainly vegetable-based – have been developed to let European QSR and cas ual dining operators maximise variety and profitability across their menus. Bruce Whitehall reports.
 

 
US agribusiness giant the J.R.Simplot Company, with annual sales of around $3 bn, is one of three companies which control around 80% of the US market for frozen French fries, the others being Lamb Weston and McCain’s. However, Simplot’s European business, operated in the Netherlands since 1995, has focused on appetizers, ‘grabbetisers’ and avocado and guacamole products. The company believes this strategy offers significant differentiation over its competitors, by focusing its product development energy on the starter and appetiser niche rather than tagging productsonto existing potato businesses. “In this way we are much more flexible in meeting our customers’ special wishes,” points out Ruud H.Meijer, general manager of Simplot Europe. “Throughout the process, we have a personal contact with our customers through all layers of the organisation.”
 
Simplot Europe’s focus is on filling gaps in quickservice, casual dining and hotel menus, with the help of products – mainly vegetable-derived – which meet diner expectations for more exotic and ‘trendy’ side dishes, starters and appetizers. The product range currently covers around 25 different kinds of appetizers and eight ‘grabbetizers’, which aredefined as on-the-go vegetable-based finger foods. There are four varieties of guacamole products while avocado products are sold as avocado pulp (for use in dressings and sauces), halves, slices and dices. All these products are sold frozen in formats which are easy to portion and prepare. Primary application is on the ‘starters’ section of menus. Preparation of most appetisers is in the oven or fryer while avocado products, which are also proving popular in sandwich applications, are served cold. Typical users are the main QSR chains and restaurants specialising in ethnic cuisine, particularly Latino, Mediterranean and Tex-Mex.
 
The top 5 products are:

• hot cheese jalapeños
• mozzarella sticks
• onion rings
• extreme supreme guacamole
• guacamole especial

 
Simplot tries to launch at least five new products each year. According to Meijer, these can vary from a new type of guacamole or avocado product to a whole new range of food components. The development of a new product typically can take 6-9 months and involves departments, from R & D to sales, at every layer in the organisation. “We believe that the European consumer increasingly recognises advantages of avocados as a nutritious, healthy and trendy item in both starters, as a side dish and in dressings. Hence our growing range of options in slices, dices and dressings,” Meijer says. Looking ahead, the company now sees similar scope for developing tropical fruits in convenient frozen appetiser, side-dish and ingredient formats.
 

 
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| 15 October 2007 |