Cantrell & Cochrane Group (C&C) last night rejected reports that it was about to sell its Tayto Foods potato crisp manufacturer, with a statement saying bluntly that the business was not for sale.

Press reports at the weekend claimed that Largo Foods was in advanced talks with C&C to buy Tayto, which laid off 200 people from two of its Dublin plants earlier this year. C&C has already contracted out much of Tayto's production to Ashbourne, Co Meath-based Largo.

However, C&C scotched the claim last night with a statement which said: "There are no talks under way between C&C Group and Largo Foods (and indeed any other party) in relation to the sale of Tayto Ltd. Tayto is not for sale."

C&C acquired Tayto Foods for €97 million four years ago. Tayto is the country's best-known crisp brand, but has no presence outside Ireland.

While it still holds 40 per cent of the market, it has conceded 17 per cent to British brand Walkers in just three years.

Walkers backed up its launch in the State with a €2 million Irish-focused marketing campaign featuring former England soccer international and TV personality Gary Lineker. Tayto failed to respond and sales began to fall.

The decline occurred during a period when sales of one of C&C's other brands, Bulmers Cider, also fell.

Following these difficulties last year, the company wrote €30 million off the value of its brands. It also sold a number of brands from its Italian drinks business, Barbero, to rival Campari for €150 million.

During the summer, C&C closed the Tayto plant in Terenure, Dublin, and cut staff numbers in a facility at Coolock on the other side the city.

Businessman Mr Raymond Coyle controls Largo Foods, which produces the Perri and Hunky Dory brands and own-brand crisps for British multiples.

Largo's Irish plants are in Meath and Donegal.