In May, Mr. Dee’s launched a line of Hidden Valley frozen potato sides, including Shredded Hash Browns, Southern Style Hash Browns, and Roasted Red Potatoes, under license from the Hidden Valley Food Products Company. This deal represents the latest of several in the frozen potato category, a small but growing slice of the licensed food and beverage business.
Not surprisingly, most of the activity involves food and restaurant brand extensions, with the typical deal focusing either on lending a distinctive flavor to the category or bringing a restaurant favorite into the home.
On the flavor side, Mr. Dee’s markets Old Bay Seasoned Fries and Potato Bites, in addition its new Hidden Valley line. The former has been on the market since 2014.
As for restaurants, a recently introduced example is Flagship Food Group’s Steak ‘n’ Shake Chili Cheese Fries, Thin ‘n’ Crispy Fries, and Silver Dollar Hash Browns. (Flagship is also the licensee for Chris’ and Pitt’s barbeque sauces and Margaritaville coffee.) Con Agra markets fries for restaurant chains including Arby’s and Red Robin, and had a similar deal with Burger King back in 2009, through its Lamb Weston division. Heinz sells T.G.I. Friday’s fries and potato skins as part of a broader range of appetizers and sides.
In some cases, restaurant-branded frozen potatoes are distributed to supermarkets and other channels by the restaurant chain itself, rather than being licensed to a third party. Checker’s/Rally’s fries are one such example. They have been available at retail since 2005.
In 2015, frozen potatoes and onions saw retail sales decline very slightly (-0.2%) to just over $1 billion, according to category data compiled for Supermarket News by IRI. Units fell by 1.66%. Flat sales such as these can be one reason manufacturers consider outside brands. Potato makers hope to steal share from their competitors by borrowing a flavor that is unique within the category or replicating a restaurant classic, as well as by capitalizing on the marketing benefits offered by an established brand.
While not all properties are appropriate for frozen potatoes, more licensing activity is likely. One indication is the stated interest in the category among property owners that are new to licensing, such as Snyder’s-Lance. When it announced earlier this spring that it would begin to extend its Cape Cod potato chip brand (among others) into adjacent products, assisted by its new licensing agent Brand Central, it mentioned frozen potatoes as one of the key products under consideration.
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