The American food and drinks group TLC Beatrice has hired a merchant bank to carry out a strategic review of all its businesses, including the Tayto potato crisp manufacturing operation in Dublin.

Since last September, Beatrice - a tightly-controlled company in which the family of founder Reginald Lewis has over 50 per cent of the shares - has been selling off some of its food assets.

That sale started with the disposal of its French food distribution business to French group Casino for $573 million and was followed last week by a $44 million management buyout of its European beverages business.

Industry sources said Beatrice seems to have taken a conscious decision to concentrate on its American business and progressively disengage from Europe. Tayto is an immensely profitable company with a substantial share of the Irish snack-food market and would be an attractive purchase for many Irish companies. In the year ending December 1996 - the most recent accounts filed with the Companies Registration Office - Tayto had pre-tax profits of £7.6 million and sales of £33.5 million, compared to pre-tax profits of £7.1 million and sales of £31.2 million in 1995.

Industry sources said that it would be surprising if Tayto's sales had not risen to at least £36 million last year, with pre-tax profits at the debt-free Beatrice subsidiary well over £8 million. With profits like that and with one of the most valuable Irish snack-food brands, Tayto would probably warrant a price tag of over £100 million. No spokesman at Tayto in Dublin could be contacted for comment on the decision of the parent company in the US to review the various alternatives.