Aga Rangemaster is hoping a move into China – where it is about to launch an upmarket oven with wok burner – could slice a chunk off its pension deficit, which has doubled in a year.
The 175-year old British brand’s one millionth modern Rangemaster oven rolled off its UK production line this week, and it said at its results on Friday that it hopes rising sales at home and overseas will enable a “rebalancing” of its £883 million (€1.2 billion) pension scheme.
"We would like to have an 'Evoque moment' in China," said William McGrath, Aga's chief executive, referring to Jaguar Land Rover's success selling luxury cars to the Chinese, which have even spawned the launch of a copycat SUV.
Mr McGrath admits the Aga concept is alien to Chinese consumers, but predicts they will soon want ovens. However, analysts are not so sure. Chinese consumer analyst Paul French said: "In China, if you have the kind of money to spend on an Aga, you generally have someone who cooks for you."
If the Chinese do splash out on appliances, the trend leans towards bling rather than country kitchen, as seen with eHaier’s golden glass fridge freezer. - Copyright the Financial Times Ltd 2015
