US chips giant Lamb Weston scoops up Aussie potato cake maker

afr.com:

Crackerjack Foods, a privately owned Melbourne manufacturer of potato cakes, has been bought out by US french fries giant Lamb Weston, which is backing the potato cakes and hash browns market to grow strongly as Australians demonstrate a preference for pub dining over restaurants.

Lamb Weston, which has been making strong inroads selling beer-battered and twirly fries in a “premiumisation” trend within the frozen foods segment, will absorb Crackerjack’s $20 million in annual revenue as part of the deal.

Simone Anderson, vice-president and general manager Oceania of US group Lamb Weston, at the Crackerjack Foods potato cake factory in Melbourne. Luis Enrique Ascui

Crackerjack supplies thousands of fish and chip shops, clubs, pubs, accommodation venues and cafes with frozen processed potato varieties. Earlier this year, it featured in a limited edition menu for fast-food chain McDonald’s, which offered potato scallops.

Simone Anderson, vice-president and general manager of the Oceania region for Lamb Weston, said potato prices in Australia had increased by 20 to 25 per cent in the past 18 months, but had stabilised. Australia was struck by a shortage of potatoes in 2022 because of a poor growing season in the eastern states.

Crackerjack specialises in potato cakes, finished potato sides, processed seafood sticks and crumbed hot dogs. It has introduced a jumbo double-battered potato cake to its line-up, 120-piece cartons of premium potato cakes that are inconsistently shaped to appear hand carved, and 400-piece nugget-shaped bite cartons marketed for pub meals.

Affordable pub and cafe meals fuelled a 1.3 per cent increase in the dining and takeaway component of July’s retail sales in seasonally adjusted terms.

The US group