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Aussie alliance likely for Mr Chips

By Phil Boeyen, ShareChat Business News Editor

Monday 3rd September 2001

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Mr Chips (NZSE: MCH) could soon be manufacturing under the Birds Eye brand for an Australian company.

The chip maker says it is in negotiations with Australian firm Simplot to establish a manufacturing alliance.

Simplot has just purchased the Birds Eye brand in New Zealand from consumer goods giant Unilever, after being encouraged by the grocery trade here to expand its operations.

Simplot chief executive, Chris Miller, says shipping frozen chips to New Zealand would be like shipping coal to Newcastle.

"New Zealand has a far more competitive manufacturing base than Australia, so a link-up with Mr Chips makes a lot of sense as we develop our Birds Eye brand there.

"Since the sale of Heinz's North Island Fielding plant to McCain in July of this year, numerous trade elements have encouraged us to participate in the market there. This is our first step."

Mr Chips chairman, Graeme Edwards, says the combination of Simplot's technical and marketing strength with Mr Chips' local knowledge and efficient manufacturing will prove mutually rewarding.

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