Kettle Chips Drive Retail Growth in Snack Aisle

SALEM, Ore.-- (BUSINESS WIRE) -- Kettle^TM Chips are proving to be one hot potato this summer as sales growth of the all-natural, premium potato chips outpace every other manufacturer in the category.

Despite flat growth in the potato chip snack category, which grew less than 1 percent during the year ending June 19, 2007, sales of Kettle^TM brand Potato Chips grew by 43 percent, according to ACNielsen.

“The entire category is stalled, yet our business is growing faster than ever, driven by consumer demand for a more premium product,” said Tim Fallon, president of Kettle Foods North America. “We made a conscious decision several years ago to take a homegrown Oregon favorite and introduce it to the rest of the country. Now we’re getting fan letters from every corner of the country. It’s a great way to celebrate our 25^th anniversary.”

Kettle Foods made its first batch of all natural potato chips with local Russet potatoes, healthy, trans-fat free expeller pressed oils, and natural herbs and spices in 1982. It makes its popular chips the same way today. Fans and critics approve. On July 4, 2007, the New York Times ranked Kettle^TM brand Lightly Salted number one in a taste test of kettle style potato chips. The brand is the number one brand of natural potato chips in both natural and mainstream grocery channels, outselling all competitors.

Overall, potato chips are responsible for 29 percent of the $9 billion salty snack dollar market. Premium potato chips are the fastest growing segment within the potato chip category, growing by $49 million while all other potato chips declined by $42 million, according to ACNielsen. Kettle Foods makes up 17 percent of the premium category, but accounted for 38 percent of the growth.

In other snack news, demand for natural tortilla, pita and pretzel snacks continues to grow rapidly; in mainstream grocery stores, these markets increased by 6, 65, and 21 percent respectively. Driven by consumer interest, Kettle Foods is making its own versions of these growing favorites, including its Kettle? brand Bakes Pita and Pretzel Chips and Kettle? brand Tortilla Chips. Its Kettle? brand Bakes Potato Chips, a healthy alternative made with fresh Russet potato slices, are helping fuel double-digit growth in both natural supermarkets and mainstream grocery.

About Kettle Foods

Founded in 1978, Oregon-based Kettle Foods is a privately owned company committed to producing great tasting, all-natural snacks with a caring commitment to its employees, craft and community. Its manufacturing sites in Salem, Ore., and Beloit, Wis., produce more than 20 flavors and four varieties of potato chip offerings, five flavors of tortilla chips made with organic corn and a variety of nut butters and trail mixes. Visit www.kettlefoods.com for more information.

Maxwell PR

Jen Scott, 503-231-3086

jenscott@maxwellpr.com