Kettle Foods

Kettle Foods
Type Snack foods
Owner Diamond Foods (since 2010)
Country  United States
Introduced 1978 (as N.S. Khalsa Company)
Markets USA, Canada, Europe, Middle East
Previous owners Lion Capital (2006-2010)
Website http://www.kettlefoods.com/

Kettle Foods is an international manufacturer of potato chips, tortilla chips, and nut butters based in Salem, Oregon, United States, with a European and Middle East headquarters in Norwich, United Kingdom. As of 2006 they were the largest natural potato chip brand in the U.S.[1] The company, founded in 1978 by Cameron Healy, has been owned by Diamond Foods since 2010.

Contents

History

The company was founded by Cameron Healy in 1978 as the N.S. Khalsa Company; it produced its first potato chips in 1982.[2] In 1988, following a motorcycle trip taken by the company's founder and his son, Sunny Keer Kettle Foods established a UK branch in a converted shoe factory in Norwich; the branch moved five years later to a newly-built factory on the outskirts of Norwich, its current UK home.[3]

In 1999, new packaging for Kettle's tortilla chips, produced by Printpack Inc. of Atlanta, Georgia, won a 1998 Top Packaging Award from the Flexible Packaging Association. The new packaging met Kettle's requirements for a "window in the bag, seals that would hold up when shipping at high altitudes, improved clarity, stiffness and barrier, as well as a film that wouldn't wrinkle" and also extended the shelf life of the chips by 30%.[4] The new bag was made from a 0.38-mil (0.0097 mm) oriented polypropylene, laminated to a 1.5-mil (0.038 mm), five-layered coextrusion that included ethylene vinyl alcohol, low-density polyethylene (LDPE) and a metallocene-based polyethylene, with a layer of LDPE as the laminant. Matte-finished inks flexographically printed on the outer layer gave the new bag a "paper look" consistent with Kettle's potato chip packaging.[4]

In 2003, the company installed the largest solar array in the Pacific Northwest to use more green energy at their Salem plant.[5][6] In September 2007, the company opened its second US production facility in Beloit, Wisconsin, lured there by $500,000 in state economic development money.[7] Kettle built the first manufacturing plant to be awarded gold certification in the LEED program from the United States Green Building Council.[7]

The company was sold in 2006 to a private equity group, Lion Capital LLP, for $280–320 million.[8]

In October 2007, campaigns were launched on Facebook calling for a boycott of Kettle Foods products[9] following allegations that the company was attempting to dissuade workers at its Norwich factory from joining trade union Unite. The company denies the claim but acknowledged that it has taken advice from Omega Training,[10] a UK subsidiary of U.S. company The Burke Group, specialists in union avoidance.[11]

In August 2008, California Attorney General Jerry Brown announced a settlement with Kettle Foods, the maker of Cape Cod Potato Chips, and Frito-Lay, for violating the state's Safe Drinking Water and Toxic Enforcement Act; the state alleged back in 2005 that the potato chips from those companies failed to document that they contained high levels of acrylamide, a carcinogen. Kettle Foods paid $350,000 in civil penalties and costs and agreed to cut their potato chip's levels of acrylamide to 275 parts per billion by 2011, an 87% reduction.[12][13]

Lion Capital put Kettle Foods up for sale in December 2009, with an asking price of around USD $700 million[8] and in February 2010 sold it for $615 million to California-based Diamond Foods, which owns brands such as Pop Secret.[14] The sale was finalized in the following month.[15]

Outside of the US and UK

The Kettle Foods UK office also supports a network of independent distributors through which Kettle Foods' products are made available in the Middle East and in European countries outside of the UK, including; Austria, Belgium, Denmark, France, Germany, Greece, Iceland, Italy, Luxembourg, Malta, Malaysia, Netherlands, Norway, Portugal, Singapore, Spain, Switzerland, and Sweden.[16]

Products

Kettle features all-natural products, with its best-known brand being their batch-cooked extra crunchy potato chips. Their potato chips are fried using expeller-pressed high monounsaturated safflower and/or sunflower oil. The company has occasionally held contests to introduce new flavors. The 2006 contest winners were Tuscan Three Cheese and Buffalo Bleu; past contest winners include Cheddar Beer and Spicy Thai.[17]

Potato chip flavor examples

The following is a list of potato chip flavors sold by the company as of 2009. The list is illustrative of the types of flavors sold by the company and is not meant to be exhaustive or up-to-date.

United States[18]
  • Backyard Barbeque
  • Buffalo Bleu (Krinkle Cut)
  • Cheddar Beer
  • Classic Barbeque (Krinkle Cut)
  • Death Valley Chipotle
  • Dill and Sour Cream (Krinkle Cut)
  • Honey Dijon
  • Island Jerk (Krinkle Cut)
  • Jalapeño
  • Lightly Salted
  • Lightly Salted (Krinkle Cut)
  • New York Cheddar with Herbs
  • Salt and Fresh Ground Pepper (Krinkle Cut)
  • Sea Salt and Vinegar
  • Sour cream, onion, and chive
  • Spicy Thai
  • Sweet Onion
  • Tuscan Three Cheese
  • Unsalted
  • Yogurt and Green Onion
  • Zesty Ranch
United Kingdom[19]
  • Honey Barbecue
  • Lightly Salted
  • Mature Cheddar and Red Onion
  • No Added Salt
  • Red Thai Curry
  • Sea Salt with Crushed Black Peppercorns
  • Sea Salt and Balsamic Vinegar
  • Smoky Barbecue
  • Sour Cream and Chive
  • Sweet Chilli
Rest of Europe and the Middle East[20]
  • Honey Barbecue
  • Mature Cheddar and Red Onion
  • Red Paprika
  • Sea Salt
  • Sea Salt and Balsamic Vinegar
  • Sea Salt and Crushed Black Pepper
  • Sea Salt, Rosemary & Garlic
  • Sour Cream and Chive

References

  1. ^ Kish, Matthew. Kettle Foods sold to British group Portland Business Journal, August 9, 2006.
  2. ^ "KettleFoods.com :: Our History". http://www.kettlefoods.com/about-us/history/. Retrieved 12 December 2009. 
  3. ^ Our story so far, from the company's UK website
  4. ^ a b "FPA's Top Packaging Awards: Less Material, Better Packages". PackagingNetwork.com. March 16, 1999. http://www.packagingnetwork.com/article.mvc/FPAs-Top-Packaging-Awards-Less-Material-Bette-0001. Retrieved 2010-03-05. 
  5. ^ Kettle Foods from the Energy Trust website
  6. ^ Kettle foods from the state of Oregon website
  7. ^ a b "Kettle Foods Opens Green Plant In Beloit". WISC-TV. September 20, 2007. http://www.channel3000.com/news/14153930/detail.html. Retrieved 2009-12-12. 
  8. ^ a b "Kettle Foods for sale". Portland Business Journal. December 10, 2009. http://portland.bizjournals.com/portland/stories/2009/12/07/daily38.html?ana=tt3245. Retrieved 12 December 2009. 
  9. ^ Consumers start online campaign to boycott Kettle Chips, an October 9, 2007 article from The Guardian
  10. ^ Internet campaign to boycott foods, an 11 October 2007 article from Norwich Evening News
  11. ^ The Burke Group
  12. ^ "Atty. Gen. Brown Settles Potato Chip Lawsuit With Heinz, Frito-Lay & Kettle Foods". Press Release (State of California). August 1, 2008. http://oag.ca.gov/news/press_release?id=1595. Retrieved 28 October 2011. "Under today's settlements, Frito-Lay, Inc., which sells most of the potato chips sold in California, Kettle Foods, Inc., maker of "Kettle Chips," and Lance, Inc., maker of Cape Cod Chips will reduce acrylamide over a period of three years to 275 parts per billion. For Frito Lay, this is about a 20% reduction, while for Kettle Chips, which contain far more acrylamide, this is an 87% reduction in acrylamide." 
  13. ^ Lazarus, David (August 6, 2008). "A stone wall made of potato chips". Consumer Confidential (Los Angeles Times). http://articles.latimes.com/2008/aug/06/business/fi-lazarus6. Retrieved 28 October 2011. 
  14. ^ Bloomberg News (February 26, 2010). "Kettle Foods of Salem sold for $615M". OregonLive.com. http://www.oregonlive.com/business/index.ssf/2010/02/kettle_foods_of_salem_sold_for.html. Retrieved 27 February 2010. 
  15. ^ "Diamond wraps up acquisition of Kettle Foods". The Oregonian. The Oregonian. March 31, 2010. http://www.oregonlive.com/business/index.ssf/2010/03/diamond_wraps_up_acquisition_o.html. Retrieved 1 April 2010. 
  16. ^ Just for retailers from the company's European website
  17. ^ And the winner is... from the company's website
  18. ^ Potato Chips from the company's USA website
  19. ^ Ten irresistible seasonings from the company's UK website
  20. ^ Eight great tasting seasonings from the company's European website

External links