Seabrook Crisps plans to build a multimillion-pound factory to help it boost sales to £200m by 2022 and expand distribution beyond its northern heartland.
The Bradford-based supplier currently has a turnover of £28m up 130% on two years ago. The company predicted that would rise to at least £63m by 2015 through distribution gains beyond its northern England heartland and into the south.
The family-owned company, which revealed its five-year plan to The Grocer this week, has a 5.6% share of the UK crisps market [IRI 52w/e 10 July 2010] but expects this to reach 10% by 2015, with the majority of the growth coming in southern England.
Seabrook's current 27% share in the north is nearly 10 times bigger than in its share in the south, according to IRI.
A new crisp factory would be built by 2012 or 2013 in or around Northamptonshire, within close proximity of Seabrook's potato suppliers and its main retailer depots, revealed managing director John Tague. It would cost "tens of millions of pounds" and enable Seabrook to accommodate increased demand from the multiples and meet the £200m turnover target.
Although the 65-year-old company had never previously relied on outside investment to grow its business, Tague did not rule out seeking extra financing "further down the line".
"We don't know what the economy is going to be like in five years but, as things stand, there is no financial problem at Seabrook and we are very confident about expansion," he said. "With our heritage and crinkle-cut style, we offer something different and retailers recognise there is space for another brand to make it big."
Extending the portfolio's premium offering, which comprises the four-strong Hot & Spicy range of 70p grab bags, is part of the sales plan, said Tague, adding that a new premium line would arrive by February.
Focus On Crisps, Nuts & Snacks (22 May 2010)
Listings help Seabrook to double sales (15 May 2010)