After going head-to-head with Cathedral City Mature Lighter when it launched Low Low reduced-fat Cheddar, Kerry Foods is now targeting Kraft and Lactalis McLelland with the launch of Low Low spreadable.

The cheese the first branded spreadable lower-fat Cheddar in the UK will be the latest product to be launched under the Low Low brand, which has already racked up £10.3m in sales [The Grocer Top Products Survey 2010] after launching in mainland UK in April 2009. Kerry is targeting £3m in sales within the first year of launch, and about £10m by the end of year three.

Launching in original Mature Cheddar and cracked black pepper variants, Low Low spreadable will go up against Lactalis McLelland's Seriously Strong Spreadable.

The extension of Low Low into a spreadable format was a natural extension, said Kelly Rafferty, Kerry Foods marketing director for dairy. "When you look at the lighter offering, more than 50% of cream cheese covered is lighter. In Cheddar spreads, it's only about 10%. There's an opportunity to drive consumers from the mainstream mature Cheddar market into spreadables."

While Seriously Strong focused on taste, and Dairylea targeted children, there was currently no brand championing health in the cheese spreads ­sector, added Rafferty.

Low Low Spreadable will launch into Asda on 10 January (rsp £1.29 for a 125g tub), with further listings to follow.

Kerry is also rolling out new packaging across the entire Low Low portfolio from this month.