Four months since settling into the CFO seat at Lamb Weston, James Gray has outlined new cost pressure risk the US-based French fries maker is facing, according to a report by Simon Harvey for Just-food.com.
The hot weather in Europe could well put Lamb Weston in a quandary in terms of potential price increases as Gray suggested the potato crop is already being affected by the persistent heatwaves.
While Gray said Lamb Weston is currently covered for its European potato supply, any shortages would likely exacerbate the cost-inflation inputs arising from the Middle East conflict.
Addressing the Bank of America SMID Cap Virtual Conference this week, Gray explained the environment playing out in Europe.
“I would say that if I had to take the total potato crop, it is more challenged in terms of its maturation due to the heat – you’re getting an earlier maturity. Probably you will have less yield coming off of the acreage,” he said.
“When your restaurant operators are really competing for traffic, and in particular in the traffic areas we see, I think you can come in with some innovation, whether it is limited time offers, or stuff that expands the franchise value. This is a wonderful category to go get creative and have some fun in,” he said.
Source: Just-food.com. Read the full story here
Image: Credit Lamb Weston
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