Old Dutch Foods and Humpty Dumpty Snack Foods have announced a merger that will result in the creation of a national potato chip company that will be better suited to compete with the likes of PepsiCo’s Frito Lay, an Old Dutch spokesperson told just-food this afternoon (21 March).
Old Dutch’s Judy Brunette told just-food that the merger will have considerable significance because it will transform each separate regional company into a national unit. “Humpty Dumpty has distribution in eastern Canada and Old Dutch operates in western Canada so the merger will give Old Dutch a national presence.”
This national presence, she explained, will have far-reaching consequences in terms of the consumers the company is able to reach. Old Dutch production, distribution and marketing will all be carried out on a national rather than regional basis when the deal is completed.
At present, Humpty Dumpty has a 15% market share in the east and Old Dutch has about one-third of the market in the west. Each company owns three manufacturing facilities in Canada and all six sites are expected to remain open, as Old Dutch hopes to increase its market share.