Healthy Ryvita looks to the East

RYVITA plans to get cracking. The 78-year-old brand is launching new products to appeal to healthy eaters. The Tondo snack range comes in crisp-like bags, with eastern spice, salted and barbecue flavours.

Ryvita crispbread contains less than 3% fat, compared with up to 30% in crisps. Associated British Foods marketing director Rob Murray said: 'Ryvita is a well trusted traditional brand, which has lots of potential.'

ABF chief executive Peter Jackson hopes to repeat the success of Twinings tea, which has seen double-digit growth thanks to demand for herbal teas.

ABF, best known for Kingsmill bread and Silver Spoon sugar, wants to extend its brand range. Silver Spoon, which accounts for 40% of its profits, faces price cuts under proposed changes to the European Union sugar regime. ABF bought Ovaltine last year. Other beverage acquisitions are likely.

At 542 1/2p, ABF is valued at £4.3bn, 13 times earnings. Its Primark clothing stores may be floated and could fetch at least £1bn. ABF sees potential there and is in no rush.