The chain has learned from its organic experiment

Bill Grimsey has masterminded a strategy he believes will make the Big Food Group - which includes cash and carry chain Bookers - into a top high street name.

The chain's ventures into internet shopping and organic produce failed to yield expected returns, while Christmas sales figures showed a drop.

Grimsey took over an Iceland chain rocked by the departure of key figures, including founder and former chairman Malcolm Walker.

He had warned before his departure in a memo written in October 2000 that Iceland sales had "fallen off a cliff".

The key message is that in this recovery process, which we've always said would take three to four years

Bill Grimsey, chief executive

But Grimsey has spent months planning his strategy and has recruited Asda's successful trading director Mike Coup to oversee wholesale changes at the Deeside-based company.

The �375m recovery programme is being funded by internally generated cash flow, a sale and leaseback transaction and debt from bank and capital markets.

Over the next six months, the group is trialing four new formats of Iceland stores, with its small and "core" stores mixing frozen produce with groceries.

The group is also shaking up its finance and logistics departments and streamlining other areas of the operation.

Underestimated

"We've now got the funding, we've got clear plans, we've got a good team in place, and I think we can do it," said Grimsey.

"I think Iceland can become the best in the high street and, with Mike Coup on board, we'll do that."

One of the keys to Grimsey's plans is to invest in the Booker's chain, which he said had been underestimated.

Booker warehouses will be earmarked as "picking centres" for the group's internet home delivery service and there will be a push of Booker's catering supply business.

Turnaround

"People don't understand it enough and I think we can drive some investment in there which it hasn't had for years," said Grimsey.

Grimsey and finance director Bill Hoskins will be relying heavily on their experience of turning round the Wickes DIY chain.

They have urged the stock market to judge the Big Food Group not on shaky recent performance figures but its future plans.

"The key message is that in this recovery process, which we've always said would take three to four years," said Grimsey.

"The first year was going to be spent on planning, building teams and building financial strategies."