Issue 6 - Irish Food

Transcription

Issue 6 2012
Kerry’s innovative investment
New Swiss chapter for CIBC
Pure protein from Glanbia
Alltech begins distilling in Ireland
Supply chain dynamics
FOCUS ON
BRANDING
BRANDING VS PRIVATE LABEL
BORD BIA’S BRAND FORUM
BRAND NEW SERVICE FROM DAWN FARMS
THE GOLD STANDARD IN SEAFOOD
BRAND LEADERS ON THE GLOBAL STAGE
LOYAL CUSTOMER
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Issue 6 2012
Editorial
Kerry Group’s announcement to establish a new Global Technology and Innovation
Centre in Ireland – described by the Government as the most significant investment in
the Irish food industry – is yet another positive news story emerging from Ireland’s agrifood sector. The move will see Kerry invest €100 million in the new campus, which will
serve as a key focal point for Kerry’s activities, providing customers with access to the
Group’s technologies, scientific research, innovation and applications expertise across
food, beverage and pharmaceutical markets.
Meanwhile, Glanbia has also announced investment in its whey protein production
plant in response, it says, to fast-growing customer demand for what is described as
the purest and most digestible form of dairy protein available. And Carbery Group has
recently formed a 50/50 whey processing joint venture with one of South America’s
leading food companies, BRF Brasil Foods. These developments signal the Irish dairy
industry’s commitment to growth, and the abolishment of quota post 2015 will create
much opportunity for the industry as a whole.
Beyond dairy, there is also good news for Irish beef with a new Swiss Chapter of Bord
Bia’s Chefs’ Irish Beef Club recently launched and Irish beef chosen to feature in the
prestigious Bocuse d’Or competition next year. Turn to page 18 for more details.
Our focus section in this edition of Irishfood examines the issue of branding - turn to
pages 21-36. Here, readers will find: debate in relation to private label and branding;
insight into consumer loyalty to Irish brands; profiles of some of Ireland’s leading
brands on the global stage; and details of Bord Bia’s Brand Forum initiative for client
companies.
Finally, Irishfood offers readers the latest news from the industry, an update on trends
affecting supply chain dynamics, and an exclusive interview with Valeo’s export manager
on the company’s strategic aim to grow its brand presence in overseas markets.
Miriam Atkins
Editor
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Contents
6
NEWS
Glanbia wins global sustainability
award
8
Alltech begins distilling in Carlow
10 Mallon Foods does it again!
12 LEAD: KERRY
The establishment of a new Global
Technology and Innovation Centre by
Kerry Group in Ireland has marked an
exciting step forward not only for the
Kerry Group, but also for Ireland’s food
industry as a whole
Editor: Miriam Atkins
Reporters: Oonagh O’Mahony, Donal Nugent
Design: Ciarán Brougham, Martin Whelan, Barry Sheehan
Production: Niall O’Brien, Michael Ryan
Deputy Chief Executive: Rebecca Markey
Advertising Executive: John Sheehan
Accounts: Tricia Murtagh
Administration: Lynda Gray
Chief Executive: David Markey
Copyright IFP Media 2012.
No part of this publication may be reproduced in any
material form without the express written permission of
the publishers.
Published by:
IFP Media,
31 Deansgrange Road, Blackrock, County Dublin,
Republic of Ireland.
T: +353-1-289 3305
F: +353-1-289 6406
E: [email protected]
www.ifpmedia.com www.irishfoodmagazine.com
14 POISED FOR GROWTH
Following the acquisition of Jacob
Frutfield in November last year, Valeo
Foods has extended its portfolio to
become a leading player in Ireland’s
FMCG sector. With a host of established
Irish brands, the company is keen
to develop more business in export
markets
16 PURE PROTEIN FROM GLANBIA
With the latest €21 million investment
in its whey protein production plant at
Ballyragget, in County Kilkenny, Glanbia
is now an undisputed leader in the
manufacture of Whey Protein Isolate.
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Contents
26 Brand leaders
IRISH FOOD profiles some of Ireland’s leading
international brands.
30 The gold standard 21 Branding
Irish seafood exports to China have increased
by 80 per cent since 2011. On the back of this
success, two Irish seafood companies are joining
forces to take advantage of the opportunities in
this growing market to launch a new seafood
brand in China.
32 Brand new service
18 Part of the club
The inaugural meeting of Chefs’ Irish Beef
Club in Switzerland took place in Zurich in
October. The event marked a new phase in
the Club’s progress, further strengthening
Ireland’s position in key export markets as a
leading supplier of quality beef.
This year cooked meat ingredient company,
Dawn Farm Foods, has created two new
sub-brands to bring clarity to the value-added
services that the company offers.
34Loyal customer
Heritage, price, identification and economic
recovery – these four points are key to retaining
and growing consumer loyalty to Irish brands,
according to a report published by Bord Bia.
36The real deal
22 Branding vs private label
As a result of the global economic slowdown,
more and more consumers are turning to
private label purchasing. However, it seems
they are not willing to abandon brands
completely.
Authenticity and trust are at the heart of any
strong brand within the food sector today. Steve
Payne and Oisín Hurst of leading international
branding agency, The Brand Union, talk to IRISH
FOOD about the importance of imparting a true
and credible message to your consumer
38 Recipes
40 Supply chain dynamics
new report from on the changing dynamics of
Asupply
and demand highlights sustainability and
adaptability as key areas of importance for those
operating within the food sector.
24 The Brand Forum
Forum was established by Bord Bia
Thein 2001Brandin collaboration
with senior industry
players and now has in excess of 120 active
member companies.
42 Spotlight on...Dee’s Eat Well, Be Happy
Dee’s Eat Well, Be Happy offers an innovative
healthy range of ‘Real Meals’, Quinoa Pots and
wholefood burgers.
Issue 56 2012
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news
Poultry and egg
industry remains
resilient
Over 200 representatives from the Irish
poultry and egg sector gathered in
Monaghan recently for Bord Bia’s sixth
biennial Poultry and Egg Conference.
Delegates heard that despite the recent
difficult trading years, egg sales increased
by 7 per cent to €87 million in 2012, while
the value of chicken sales remained steady
at €180 million. In Ireland, consumption of
poultry meat accounts for 33 per cent of
total meat consumed and at 25.7 kg per
capita per annum, Ireland represents one
of the highest levels of consumption across
Europe. Irish shoppers currently spend
€85 million per year on eggs (165 eggs per
capita each year) with 54 per cent buying
eggs every week, an increase of 11 per cent
on last year.
Despite the increased sales, the outlook for
the sector is challenging for the remainder
of 2012 and into next year mainly due to
high feed costs. While the poultry sector is
generally less affected than other primary
sectors by the economic recession, the
increase in feed costs has had an impact.
Speaking at the event Aidan Cotter, Chief
Executive, Bord Bia said: “Many changes
have taken place across the industry in
recent times, from a changeover to the
new laying hen welfare standards to the
dramatic rise in input costs. However, this
sector is possibly the most dynamic in terms
of evolving and meeting the challenges it
faces today.”
David Owens, Bord Bia’s Poultry Sector
Manager, outlined Bord Bia’s plans to
intensify TV and marketing promotions
throughout 2013 to assist the sector at this
turbulent time. “With almost 95 per cent of
all poultry and egg producer members of
the Bord Bia Quality Assurance Scheme, a
strong and resilient home market is critically
important for the success of the industry.
Since 2006, consumer awareness of Bord
Bia’s Quality Mark has grown from 62 per
cent to over 90% this year. We will continue
to work with all members of the industry to
promote Bord Bia Quality Assured poultry
and egg products and over the coming
weeks, we will be promoting the vast
range of Quality Mark produce to increase
awareness and purchase frequency during
the Christmas season.”
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Glanbia wins global sustainability award
pictured (left to right) receiving the award are: audrey o’ shea, Carbon and sustainability manager, glanbia; martin Tynan, general manager, glanbia virginia; darran
messem, managing director of Certification, Carbon Trust; and danny mulryan, environmental services manager, glanbia.
Glanbia Dairy Ingredients Ireland was presented
with the global award for ‘Best in Relative Carbon
Reduction (2011-12)’ at the recent annual Carbon
Trust Standard Bearers Conference in London.
The awards celebrate organisations that have
undergone independent assessment to prove
that they have cut their own carbon emissions
and have the necessary programmes in place to
continue reducing.
Speaking after the announcement of the award,
Jim Bergin, CEO, Glanbia Dairy Ingredients said:
“Glanbia is hugely committed to sustainable
production. We believe that carbon reduction
makes economic and environmental sense but it
also sends a clear signal to our customers that we
are committed to sustainable indigenous food
production. We export 85 per cent of what we
produce to recognised brands around the world.
Our achievements help to support our customers’
goals in reducing the overall carbon footprint
of their brands and this is a very important
differentiator in the market place. Achieving
the Carbon Trust Standard and receiving special
recognition from the Carbon Trust is a great
honour.”
Sustainability complements operational efficiency
and low cost manufacturing. With the abolition of
the EU quota system, Glanbia Dairy Ingredients
Ireland expects to see an increase in milk
production of 60 per cent by 2020. The company’s
plans for growth include a proposed new €150
million greenfield development in Belview, Co.
Kilkenny, which will allow Glanbia design a stateof-the-art facility to be built using best in class
environmental and sustainability systems.
Darran Messem, Managing Director of
Certification, Carbon Trust said: “Glanbia’s
achievement demonstrates that growth can
be decoupled from carbon and you can grow
a business without proportionally increasing
carbon emissions. This award demonstrates
Glanbia’s commitment to reducing its impact on
the environment, lowering its costs and meeting
customer demand for lower carbon products. We
believe this is a very significant achievement and
as such would like to give special recognition to
Glanbia with this award.”
In January, Glanbia Dairy Ingredients facility in
Virginia became the first Irish dairy company to
achieve the prestigious ‘Carbon Trust Standard’, a
globally recognised certification for organisations
that have measured, managed and reduced their
carbon footprint, and committed to making
further reductions year on year. It followed a
concerted effort by management and staff in
Glanbia’s Virginia facility that resulted in an 8.5
per cent reduction in carbon emissions relative
to plant output over the previous three years.
Glanbia’s plant in Ballyragget, Co. Kilkenny, the
largest integrated dairy facility in Europe, received
the ‘Carbon Trust Standard’ in May having passed
the audit process with a 23 per cent reduction
relative to turnover in carbon emissions over the
last three years. Glanbia has also extended its
own sustainability programme to the farm gate
through the roll out of the ‘On Farm Sustainability
Programme’ which all 4,500 Glanbia milk suppliers
will participate in.
Issue 6 2012
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IF Issue 6.indd 7
ABP Ireland 210x280 page.indd 1
ABP Ireland
Part of ABP Food Group
ABP Ireland
Part of ABP Food Group
T. +353 (0) 41 6850 200
E. [email protected]
T. +353 (0) 41 6850 200
E. [email protected]
16/11/2012 14:41:38
21/09/2012 15:15:19
news
Alltech begins distilling in Carlow
Glenisk and Gorta
partner in Kenya
A new partnership to develop a dairy
processing plant in Kenya’s Rift Valley has
been agreed between non-governmental
development agency Gorta and Irish
dairy processor Glenisk. The new dairy
processing facility, financially supported
by Gorta, will use Glenisk expertise in
creating employment and developing
skills in the region. The partnership will
see Gorta and Glenisk working with
farmers to build and develop small farm
businesses. The aim is that the small
farms would supply a regular delivery
of quality milk for processing, resulting
in a much improved income for local
families. The community in Keringet,
Kenya, has already been involved with
Gorta in a programme of social and
business development that aims to
establish sustainable social enterprise
in the region. The first new business
initiative was a yogurt-making facility,
and production has already started on
a small scale. According to Gorta chief
executive Brian Hanratty: “Gorta has
always encouraged business involvement
in Africa and is delighted that a hugely
successful company like Glenisk has
agreed to invest its business development
skills, processing experience and advice
in this initiative. It will give the people
in Keringet [Kenya] an opportunity to
create a sustainable social enterprise that
will have knock-on effects for the entire
community.”
8
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(From left to right) mark Coﬀman from alltech
in the united states; seamus o’hara from
Carlow Brewing Company; and Jack o’shea
from alltech Ireland, stand at the spirit still.
Alltech’s craft distillery has finally been installed at its
location in Carlow Brewing Copmany, Bagenalstown,
Co. Carlow. The Vendome pot stills, flown all the
way from Lexington, Kentucky, are now ready to
be commissioned, meaning that they are ready
to receive the first batch of what, in three years,
will become Alltech’s first Irish whiskey, distilled in
Ireland.
“Our whiskey is 100 per cent malt, made with only
two other ingredients, water and distiller’s yeast.
As yeast technology forms a large part of our core
business, we have developed our own distiller’s yeast
to use in the whiskey-making process,” said Dr Pearse
Lyons, president and founder of Alltech. “Once the
distillation process has finished, the whiskey will then
be aged for three years in barrels from The Lexington
Brewing and Distilling Company in Lexington,
Kentucky, USA, home to Alltech’s other spirit, the
award-winning Town Branch Bourbon. This way we
will keep the Kentucky-Ireland connection alive.”
Founded by Irishman, Dr Pearse Lyons, Alltech is a
global animal health and nutrition company with 32
years’ experience in developing natural products that
are scientifically proven to enhance animal health and
performance. With 2,800 employees in 128 countries,
the company has developed a strong regional
presence in Europe, North America, Latin America, the
Middle-East, Africa and Asia.
Issue 6 2012
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News
‘Chef of the century’ joins Irish club
Bord Bia has proudly welcomed
the 3 star Michelin chef, Paul
Bocuse as an honorary member
of the Chefs’ Irish Beef Club, a
significant endorsement for Irish
beef, in advance of the Bocuse
d’Or World Cuisine Competition
in Lyon next January. Proprietor
of establishments from Lyon to
Tokyo to Florida, employing a
staff of 700 and generating a
turnover of €100 million, Paul
Bocuse is acclaimed as ‘Chef of
the Century’ by his peers. Irish
beef was recently selected as a
key ingredient for the Bocuse
d’Or, the world-renowned
culinary competition, following
a rigorous process, based on its
Pictured (from left) are: Bernadette Byrne, Bord Bia Paris; Jean-Paul Jeunet, 2 star Michelin chef from the Jura region and President of
the French chapter of the Chefs’ Irish Beef Club; Paul Bocuse; Ambassador Paul Kavanagh; Christian Têtedoie, 1 star Michelin chef in Lyon
and President of the Maitre Cuisiniers de France; and Noreen Lanigan, Manager, Bord Bia Paris.
grass-fed nature meaning the
product is of a high quality
in terms of tenderness, taste
and texture. The Bocuse
d’Or was pioneered and
named after Paul Bocuse,
in order to broaden the
public’s understanding of
the extraordinary dedication,
practice and precision
required to execute the
finest cuisine. The Chefs’ Irish
Beef Club unites European
Michelin starred chefs from
France, the Netherlands,
the UK, Germany, Belgium,
and Switzerland, who work
predominantly with prime
Irish beef.
History in the baking since 1835.
Truly authentic brands will stand the test of time.
“The brand’s market share is increasing by recognising our
history whilst looking forward to the future.”
Michelle Grifﬁn, Marketing Manager, Johnston Mooney & O’Brien
The Brand Union
Dublin
thebrandunion.ie
+353 (0)1 613 1650
Issue 6 2012
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news
Mallon Foods does it again!
Value still
dominant in
foodservice
At a recent Foodservice Seminar
organised by Bord Bia – Irish Food Board,
delegates heard that for the first time
in three years players can plan ahead
with some sense of market stability
as a sense of certainty returns to the
market. Speaking at the event, Bord
Bia’s Foodservice Specialist, Maureen
Gahan said: “Despite a period of sharp
decline, foodservice in Ireland offers
major opportunities for suppliers
offering innovative products and
solutions to meet changing consumer
needs. In certain channels, such as ‘on
the go’, casual dining and Quick Service
Restaurants, there are clear green shoots
emerging as consumers trade down to
lower cost eating out options. These
channels will drive the market revival.”
Bord Bia also launched its
Irish Foodservice Market Directory 2012 at
the event. Addressing delegates, Ms.
Gahan commented: “There are some
interesting trends and drivers emerging
from the 100 in-depth telephone
interviews undertaken as part of the
directory compilation. Value is still
dominant and almost all interviewees
referenced the ongoing consumer
interest in meal deals, early birds and
special promotions. Real opportunities
exist for producers engaging in lean,
efficient production and delivering
foodservice specific innovation. It was
encouraging to note that the drive to
source Irish and regional food featured
stronger than ever with the message
from operators and distributors to Irish
food manufacturers being to ‘tell the
provenance story’. This is what their
restaurant customers, and ultimately the
end consumer is looking for”.
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Mallon Foods, the award-winning producer of premium Irish pork products, has been awarded two more starstudded accolades at the prestigious Commanderie des Fins Goustiers du Duché d’Alençon Championship,
2012. The Monaghan-based food firm received the awards of ‘Champion of Ireland for Creative Sausage’; and
‘Diploma in recognition of a Grilled Sausage’ when the 2012 winners were announced by The Commanderie
des Fins Goustiers de Duche Alencon - Europe’s premier awarding body for producers of sausages and white
pudding. These most recent accolades have made Mallon’s the most decorated, award-winning sausage
company in Ireland.
Speaking after the announcement, Managing Director of Mallon Foods, Paddy Mallon (pictured above), said
that he was thrilled to have beaten such stiff, international competition and honoured that Mallon’s offerings
have been acknowledged by experts within the food industry as some of the best pork products available.
“We are truly honoured to have been awarded with prizes from the Commanderie des Fins Goustiers de
Duche Alencon for the third year in a row and delighted to have beaten such strong opposition from our
fellow sausage makers. These awards are the ‘Olympics’ for producers of pork sausages, so to achieve two
more accolades from such a renowned and respected institution is testament to our unwavering commitment
to the production of first-class pork products and a wonderful acknowledgement by the industry.”
Earlier this year, Mallon’s was conferred with one of the world’s most prestigious food honours following its
win in the Grand Prix d’Excellence 2011 for the best European grilled sausage, in addition to being named
Champion of Ireland in the European creative or ‘personalised’ sausage category that same year.
This most recent recognition by the food industry only adds to Mallon’s ever-growing list of achievements
which now stands at over 100 awards at both an Irish and European level after the Monaghan food company
was named as the only Irish Branded Sausage Producer to win at the Great Taste Awards earlier this year.
Issue 6 2012
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News
Carbery Group and BRF Brasil Foods announce joint venture
Carbery – a major international food ingredients, flavours and cheese
manufacturer headquartered in Ireland – has announced the formation of
a 50/50 whey processing joint venture with one of South America’s leading
food companies BRF Brasil Foods. The venture, which involves a shared
investment of $50 million, will use Carbery’s innovative technology to
process whey generated at Brasil Food’s cheese-making operations in one
of the foremost milk producing regions in Brazil. BRF, which employs around
115,000 people and has an annual turnover of US$13.7 billion, is the second
largest collector of milk in Brazil. Together with significant pork and poultry
operations, the company has 14 dairy processing sites in Brazil together
with one in Argentina and processes in excess of 1.6 billion litres of milk per
annum. The company’s product portfolio
includes cheese, UHT milks and fresh dairy
products marketed under the Batavo and
Elege brands.
Dan MacSweeney, CEO of Carbery Group,
in welcoming the joint venture, said: “This
joint venture with one of Brazil’s leading
food companies further enhances our
footprint in the vast agri-food business
in South America. Carbery’s capability
to produce high quality whey protein
ingredients in the country will strengthen
our offerings to the leading nutritional
brands there, and ensure we are positioned
for further growth in a dynamic and
growing economic region. Furthermore,
by growing our presence in emerging
markets like this, Carbery is adding value to
its core business in Ballineen, Ireland, and
our other international facilities, in a steady
and planned way, while demonstrating
our ability to compete and succeed in
world markets, using world-class process
technology. Our R&D capabilities here in
Ireland are crucial to our offering, and we
are truly confident of further growth and
development opportunities into the future.”
Jose Antonio Fay, CEO BRF commented:
“There are many synergies between our
two companies and we are delighted to
partner with Carbery Group on this joint
venture initiative. They are renowned for
their service and technological capability,
putting their customers at the centre of
projects large and small, and offering worldclass quality and innovation. We were also
impressed with their proven success on
an international scale, and look forward to
working with them.”
Carbery, with a turnover of €257 million
(2011), employs over 500 people globally
and is a leading player in the manufacture
of whey based ingredients internationally,
brought about by significant investment
in research and development, principally
at its centre of excellence for nutrition
in Ireland. The outputs of this long term R&D programme has led to the
development of a range of advanced dairy based nutritional ingredients
which are supplied to many of the world’s leading international food and
drink companies. Many leading consumer brands in baby food, sports and
performance nutrition, together with foods such as yoghurts and bakery
products, contain Carbery proteins, which are recognised globally for their
high quality and efficacy.
The new operation will house a state-of-the-art manufacturing plant to
produce added value nutritional ingredients sourced from whey. The
construction of the processing facility is planned to commence immediately
and it will be commissioned in 2014.
Issue 6 2012
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lead
The next step for Kerry
pictured are stan mcCarthy, Ceo Kery group and simon
Coveney Td, minister for agriculture, Food and the marine.
The esTaBlIshmenT oF a
new gloBal TeChnology
and InnovaTIon CenTre
By Kerry group In
Ireland has marKed
an eXCITIng sTep
Forward, noT only The
Kerry group, BuT also
For Ireland’s Food
IndusTry as a whole
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the lAteSt newS FroM Kerry group has
been described by the Government as
the most significant investment ever in
the Irish agri-food industry. Kerry Group,
the global ingredients & flavours and
consumer foods group, has announced
the establishment of a €100m industryleading Kerry Global Technology and
Innovation Centre in Ireland to serve the
Group’s global and regional customers
in the EMEA region. Kerry is now the
largest player in the ingredients and
flavours market, with 150 manufacturing
facilities worldwide and with sales to 140
countries. Minister for Agriculture, Food
and the Marine, Simon Coveney, said:
“This is a phenomenal announcement and
is perhaps the most significant investment
ever in the Irish agri-food industry. Not
only is this an announcement of high-end
jobs, but it is proof that the agri-food
sector can be central to rebuilding the
Irish economy. Kerry Group is Ireland’s
largest agri-food and food innovation
company. They employ 24,000 people
around the world. This investment is
a statement of confidence in the Irish
economy and in the quality of Irish
food science graduates to deliver food
innovation in the most modern facility
of its type on the planet. The agri-food
and food innovation sector will continue
to provide positivity and optimism in the
Irish economy. The leadership that Kerry
have shown with this project is testament
to their commitment to this country. “I
visited the giant Kerry food innovation
and development centre in Beloit, north
of Chicago earlier this year and it was very
clear to me then that the establishment
of such an operation in Ireland would be
a perfect fit for Ireland and where we are
heading with the agri-food sector.”
The new flagship global technology
and customer innovation centre will
serve as a key focal point for Kerry’s
customer engagement activities providing
strategic customers with access to the
Group’s complete breadth and depth
of technologies, scientific research,
innovation and applications expertise
across food, beverage and pharmaceutical
markets. Located on a 28-acre site in the
Millennium Business Park, Naas, Kerry
Group will invest €100 million in the new
campus, which will accommodate 800
people in 2015 and a further 100 positions
when fully commissioned by mid-2016.
The new Kerry Global Technology and
Innovation Centre will also include Kerry
Ingredients & Flavours EMEA regional
management, 1 Kerry Global Business
Issue 6 2012
16/11/2012 14:41:51
Lead
Services and support functions.
Speaking at the announcement,
Stan McCarthy, Kerry Group Chief
Executive, said: “The establishment
of this new global technology and
innovation centre is consistent with
the Group’s 1 Kerry Strategy for
Sustainable Growth, providing our
customers with access to Kerry’s total
technical and innovation capability
to optimise product differentiation
in the marketplace and provide
unrivalled speed to market. Working
in tandem with the Group’s existing
technology and innovation facilities,
the new Centre will focus Group-wide
capability to drive strategic customer
engagement and sustainable growth.”
Welcoming the support of the Irish
Government for this project, Stan
added that the new centre would
bring significant career development
opportunities, supporting functional
and business leadership development
throughout the Kerry organisation,
and would assist in accelerating
graduate/early career development,
talent management and training.
Construction of the new facility
will commence in early 2013 once
planning is complete.
An Taoiseach Enda Kenny said: “The
decision by Kerry Group, with the
support of the Irish Government, to
establish this ground-breaking facility
in Ireland will bolster our strong
reputation as a globally renowned
country for food production and
innovation. The creation of 800 high
skilled jobs going into this facility
in addition to the 400 immediate
Kerry Group
construction jobs will be a great boost
to the economy and for the people
working in these industries. As one of
Ireland’s finest indigenous companies
we look forward to working closely
with Kerry during the development of
this Global Technology & Innovation
Centre.
“Growth of the food industry as
envisioned in the Government’s
Food Harvest 2020 report, the blue
print for the smart and sustainable
growth of the agri food sector will
be based on the development of new
and innovative products in rapidly
changing markets. The decision of
the Kerry Group, which already has
a world-class reputation for industry
focused research solutions and the
creation of new product categories,
sends out a hugely positive message
about Ireland’s food research capacity
and capability and will, I hope, attract
further investment interest.”
Concluding, Minister Coveney
acknowledged the role of Enterprise
Ireland, the Department of the
Taoiseach, Department of Jobs,
Enterprise and Innovation, as well
as his own Department, in securing
this project for Ireland. “The
success of our food sector is linked
to tackling challenges cohesively
and with determination. Excellence,
determination and a capacity to
innovate and lead in food research
feature in this. This announcement
enables us to plan with more certainty
for the next phase of sustainable
export led and job-delivering growth”.
Kerry Group today is a world leader in food ingredients and flavours
serving the food, beverage and pharmaceutical industries and a leading
consumer foods processing and marketing organisation in selected EU
markets. From the commissioning of its first manufacturing plant in
Listowel, Ireland in 1972, the Kerry organisation has grown to become
a highly successful public company, having achieved sustained profitable
growth with current annualised sales in excess of €5 billion. Launched as a
public company in 1986, the market capitalisation of the Group has grown
to a current level of approximately €7 billion. Kerry Group now employs
over 24,000 people throughout its worldwide activities and operations.
The Group’s ingredients and flavours division develops, manufacturers
and delivers innovative technology-based ingredients and taste solutions
and pharma, nutritional and functional ingredients for food, beverage and
pharmaceutical markets.
Kerry Group’s Chinese partnership
Kerry Group has entered into a partnership
agreement with Beingmate of China, for the
supply of Irish dairy ingredients for infant
nutrition applications in China. Beingmate
is a leading manufacturer of infant nutrition
products headquartered in Hangzhou, in China.
The partnership provides strong export growth
opportunities for added-value dairy ingredients
from Kerry Group’s dairy processing facilities in
Charleville, County Cork and Listowel, County
Kerry.
Minister for Agriculture, Food and the
Marine, Simon Coveney, noted that this is
another tangible outcome to the increased
level of cooperation and trade between Ireland
and China, which has been developed in
recent times. Speaking after the signing of
the agreement, Minister Coveney said that
the relationship between Kerry Group and
Beingmate was built on the strong international
reputation of Ireland as a producer of the
highest quality foodstuffs. “This partnership
is the product of the hard work and dedication
of the Kerry Group, which has developed key
business relationships across the globe on the
basis of a reputation for quality and excellence.
This reputation is built on the back of the very
strong brand image of Ireland as a supplier of
high quality foodstuffs, produced in a sustainable
way, to the highest international food safety
standards. The fact that Ireland is now seen
as the major supplier for infant nutritionals
worldwide is an indication of the esteem in
which Irish food safety control systems, and the
quality of Ireland’s grass-based farm produce,
are held internationally. Maintaining this strong
reputation must be a priority.”
The Minister also referred to the critical
importance of environmental sustainability as a
foundation for international trade, commenting:
“While the work we are doing at political and
commercial level in China and elsewhere is
critically important, it must be supported by
environmentally sustainable production models
at all levels of the supply chain. Procurement
divisions in all of the major multinational
food companies have sustainability at the
heart of their corporate agendas. Ireland is
the first country, internationally, to develop an
independently accredited sustainability model at
industry level, through Bord Bia’s ‘Origin Green’
initiative. At farm level, the development of a
dairy sustainability programme is at an advanced
stage. I am confident that these initiatives will
provide essential building blocks for Irish food
companies to increase international trade in
China and elsewhere”.
Issue 6 2012
IF Issue 6.indd 13
13
16/11/2012 14:41:51
Interview
Poised for
growth
FOLLOWING THE ACQUISITION OF JACOB FRUTFIELD
IN NOVEMBER LAST YEAR, VALEO FOODS HAS
EXTENDED ITS PORTFOLIO TO BECOME A LEADING
PLAYER IN IRELAND’S FMCG SECTOR. WITH A HOST OF
ESTABLISHED IRISH BRANDS, THE COMPANY IS KEEN
TO DEVELOP MORE BUSINESS IN EXPORT MARKETS
IN A SERIES OF MERGERs and acquisitions
in quick succession, one of Ireland’s
most dominant players in the consumer
food branded field has been created.
In November 2010 Origin Foods and
Batchelors merged, and within less than
a year Jacob Fruitfield joined the clan
under the company name Valeo Foods.
Today, Valeo is the largest ambient
food supplier in the Republic of Ireland
and boasts an excellent portfolio of
indigenous consumer brands, a business
with sales in excess of €280 million.
According to Rosaleen O Hara, Export
Manager, the company is focused on
the development of these brands in not
only the Irish grocery market, but also
on an international scale. The group’s
product portfolio encompasses a wide
range of food commodities including
flour, canned beans and peas, vine fruit,
14
IF Issue 6.indd 14
almonds, nuts, tuna, canned tomatoes,
olive oil, dried pasta, rice, juices, dried
sauces, meal mixes, pasta sauces, sugar
and oats. In addition, Valeo Foods
represents a number of leading national
and international food manufacturers
and provides a range of tailored routeto-market services including field sales,
head office commercials, warehousing,
distribution and working capital
management.
Talking to IRISH FOOD, Rosaleen
says: “We have an extensive portfolio of
market leading consumer brands with a
No.1 or No. 2 market position. These
heritage brands command a high level of
consumer awareness and we are operating
in categories with non-discretionary
demand – e.g. beans, flour, juice, pasta.
Valeo Foods’ own iconic Irish brands such
as Batchelors, Chef, Erin, Jacobs, Odlums,
Fruitfield, Old Time Irish, Sqeez and
Shamrock. These brands have a strong
presence in the domestic market, but we
see huge opportunity to develop sales
overseas. In particular, work to develop
the Erin and Bolands brands in the UK
is already underway as well as for the
Odlums brand in the US.”
Operations
Valeo Foods services a large and diverse
number of customers in the retail,
wholesale, bakery and foodservice channels
in Ireland. The group operates seven
manufacturing and distribution sites
around the country, while the head office
is located in Ballymount, Dublin. Per
annum, the company is canning 50 million
cans, 10.8 million packs of juice, and 13
million dried sauce sachets. Commenting
on the company’s dedication to food
Issue 6 2012
16/11/2012 15:43:09
Interview
quality across its network of factories,
Grainne O`Halloran, Technical Director
at Valeo, says: “Valeo Foods is committed
to ensuring the highest standards of food
safety, quality and legality across all of our
businesses. The operation of an effective
quality assurance system is an essential
requirement in ensuring the success of our
brands.”
Brand position
Talking about the company’s strategic
approach to supporting brand position,
Rosaleen explains that the key tools used
by the company are category management
initiatives, strategic pricing and consumer
marketing.
“Having such a diverse range of Irish
brands all under the one roof is hugely
important as a USP.”
Already Bolands biscuit products are being
sold in the UK, representing the highest
proportion of export trade for Valeo at
the moment. Approximately 90 per cent
of the turnover Bolands makes is sold in
the UK through several UK distributors.
The biscuits, which are sold under the
Jacobs brand in Ireland, are listed in
retailers such as Morrisons and Asda, as
well as the discount trade. In tandem with
efforts to develop this trade in the UK and
beyond, and create more brand awareness
for Bolands, Valeo is also working on
numerous projects to introduce other
brands into the marketplace, such as
Erin and Odlums. “We are working
with Bord Bia to target the UK with our
range of soups, gravies and
savoury rice under the Erin
brand, as well as our flours
and bread mixes under the
Odlums brand. We have had
very positive feedback from
our focus groups and we are
looking to secure listings with
the leading multiples in the
UK. Currently, these brands
are being stocked in 32 Tesco
stores in the Irish promotional
section. Marketing our range
as ‘whoelsome Irish brands’ is a
major selling factor we believe.
Also, Valeo has the flexibility
to offer many of its ranges in
different pack formats. So,
for example, our Erin soups and ‘flavour
shakers’ (spices for mixing with meats
and vegetables) can be supplied in a wide
variety of pack formats and sizes. We
pride ourselves in the fact that we can
turn around new packaging and product
requirements quickly and efficiently for
customers, due to the manufacturing
facilities we have in place. Valeo can tailor
products to suit different taste profiles
across Europe and beyond, so this ability
to adapt gives us a real competitive edge.”
The Shamrock brand, which incorporates
a range of high quality baking products,
is another brand that is well known and
trusted by the Irish consumer but has
yet to establish itself in the UK. “We
hope to promote wholesome Irish baking
through Shamrock, and trial it in the
UK following the launch of the Erin
range.” For its Odlums range of flours,
quick breads, scones and cakes, Rosaleen
sees much opportunity overseas, and
again the company’s capability to deliver
different packaging solutions and
different products, such as gluten free,
she says will assist growth on an export
level.
Private label
Beyond its brand portfolio, Valeo Foods
also sells under private label, which
accounts for 8 per cent of turnover. Here,
Rosaleen says that building business in
private label for its canned products is
foremost on Valeo’s strategic agenda.
“We have real strength on our cannery
side – we can sell beans, peas, or any
vegetables or fruits canned. We have
invested heavily in improving efficiencies,
which has resulted in additional capacity
in our canning facility, which we are keen
to exploit.”
Concluding Rosaleen says: “We have
strong brands and the capability to be
flexible to new customer demands, across
a wide range of products. We are ready to
grow our business overseas and we think
our dedication
to quality and
our state-of-theart facilities will
support this aim.
The hope would
be that 15 per cent
of the company’s
turnover will be
accounted for by
export business by
2015.”
Issue 6 2012
IF Issue 6.indd 15
15
16/11/2012 14:47:50
Industry
Pure protein
wITh The laTesT €21
mIllIon InvesTmenT
In ITs whey proTeIn
produCTIon planT
aT BallyraggeT, In
CounTy KIlKenny,
glanBIa Is now an
undIspuTed leader
In The manuFaCTure
oF whey proTeIn
IsolaTe.
Jim Bergin, Ceo glanbia dairy Ingredients Ireland (“dII”); John moloney, group md glanbia and liam herlihy, glanbia Chairman at the unveiling of the latest €21million
investment by dII in the newly completed whey protein isolate facility at Ballyragget in Co. Kilkenny
glAnBiA’S BAllyrAgget Site is one of
Europe’s largest integrated dairy processing
facilities producing cheese, butter, whey,
Casein and MPC from the milk produced
on surrounding dairy farms. Solmiko is the
brand name for Glanbia’s range of spray
dried MPC and MPI powders made from
fresh ultra-filtered skim milk.
The new investment in the production
of whey protein isolate is in response to
fast growing customer demand for what is
described as the purest, and most digestible
form of dairy protein available. The
16
IF Issue 6.indd 16
market for the product is growing at over
7 per cent per year and it is typically used
in applications ranging from sports and
performance nutrition to high end clinical
and infant nutritional formulations. One
particularly exciting market opportunity
is in the area of protein delivery in the
diets of older people where counteracting
muscle degeneration in the over 50s is
especially challenging. It is estimated that
muscle mass can decline by 1 per cent per
year in people over 50 years of age, without
the proper exercise and dietary regimes.
what is whey protein?
To the uninitiated the first question to be
answered is : What is whey protein? Milk
protein consists of two types of proteins
- casein and whey. The whey is separated
from milk during cheese making. Further
processing of the whey can yield high
purity whey products such as Glanbia’s
trademarked Provon. Whey proteins
consist of a number of protein subfractions
such as B-lactoglobulin, A-lactalbumin,
glycomacropeptides, bovine serum
Issue 6 2012
16/11/2012 14:42:05
Industry
from Glanbia
albumin, immunoglobulins, lactoferrin and
minor peptides. All of these are recognised
as having the potential to play roles in
human health.
Whey Wins
When describing whey as a high quality
protein source, it is necessary to actually
delve into exactly what that means.
Whey protein has a biological value
that is higher than that of casein, egg or
soy protein. This is a measure of how
fast your body can use a fuel source.
In addition, whey has a high metabolic
efficiency and is high in essential amino
acids. In fact, almost 50 per cent of the
total protein in whey protein is composed
of essential amino acids, outperforming
either soy protein or casein. A further
analysis shows that whey protein is high in
Branched-Chain Amino Acids, making up
25 per cent of the total protein present.
Innovative Technology
Previously, Whey Protein Concentrate
(WPC) was the most accessible form
of dairy protein for a range of uses.
The development by Glanbia of new
technologies to allow the production of
Whey Protein Isolate (WPI) is a further
successful initiative by the Irish company.
WPI is a purer form of protein than
WPC. Isolate has a higher protein content
(up to 90 per cent) than WPC (35 to 80
per cent). As a result, WPI has a higher
protein in each serving of the product
than WPC. Each 100 grams of WPI
contains 90 grams of protein. In addition
WPI is virtually fat, cholesterol and
lactose free. This is in contrast to WPC
which may have high levels of lactose,
running anywhere from 4 to 52 per cent,
and fat, at 4 to 8 per cent, depending on
the concentrate type.
Natural Filtration
Cross-flow Microfiltration (CFM) is the
special process used by Glanbia for the
isolation of whey protein. The company
secured the rights to the CFM acronym
by being the first in the dairy industry to
use cross-flow micro-filtration technology.
This micro-filtration, followed by a
natural concentration and drying process,
is technology that Glanbia pioneered and
has perfected over the past 20 years.
The rationale for using Glanbia’s WPI
product, Glanbia CFM Provon, as distinct
from the ion-exchange produced WPI,
is because the low temperature CFM
process isolates the dairy protein of whey
at its biologically natural pH, thereby
fully preserving its biological activity. It is
widely understood that harsh processing
can denature or disrupt the structure of
the proteins rendering them biologically
inactive.
The actual technology involved in CFM
uses a gentle filtration system that yields
a high level of un-denatured protein with
almost no lactose in the end product. The
filters are used to separate protein from
undesirable fat and cholesterol, based on
molecular size and shape. In addition ionexchange processing may remove many
of the bioactive peptides present in whey.
The gentle process involved in the CrossFlow Micro-filtration process yields high
purity protein while keeping the valuable
‘extras’ that ion exchange discards, such as
Glycomacropeptide (GMP), which have
useful biological properties.
Ongoing Investment
Since 2007 Glanbia Plc has invested €107
million in its dairy processing facilities
near the river Nore in North Kilkenny.
Plans are afoot to invest another €180
million in a joint venture with Glanbia
Cooperative, the Plc’s largest shareholder,
developing a brand new milk processing
facility near the port of Waterford in
South Kilkenny. The expectation is that
this new unit will be in operation in time
to cater for the expected growth in milk
output by Irish dairy producers after EU
regulated milk quotas are abolished in
April 2015. Currently Glanbia’s ‘Dairy
Ingredients Ireland’ milk processing
operations deliver upwards of €1.54
billion into the Irish economy. An
economic assessment by Ernst & Young
predicts that this figure will increase to
€2.05 billion after the expected expansion
in milk output with direct and indirect
employment from the business increasing
by 1,850 to 7,500 full-time jobs. All of
this expected growth will be destined
for Glanbia’s international customers,
securing valuable export revenues for the
Irish economy. The company emphasises
that the major focus for Dairy Ingredients
Ireland is in offering solutions to
customers with a range of different
requirements. With Glanbia’s R&D
strategy delivering an ongoing stream
of innovative, added value products the
future looks bright for this Irish-based
international dairy company.
Issue 6 2012
IF Issue 6.indd 17
17
16/11/2012 14:42:05
Industry
Part
of
the
club
The Inaugural meeTIng oF
CheFs’ IrIsh BeeF CluB In
swITZerland TooK plaCe
In ZurICh In oCToBer.
The evenT marKed a
new phase In The CluB’s
progress, FurTher
sTrengThenIng Ireland’s
posITIon In Key eXporT
marKeTs as a leadIng
supplIer oF QualITy BeeF.
pictured at the launch in Zurich were award-winning chef Tobias Funke; declan Fennell, Bord Bia; ambassador martin Burke and renowned swiss chefs heinz
rufibach; richard stockli and urs Keller.
Bord BiA’S cheFS’ iriSh BeeF cluB is an
innovative initiative which has been in
place since 2004. The aim of the Club is
to promote the benefits of using Irish beef
amongst international chefs. For a chef,
the quality of a product is essential and
knowing the origin of a product and the
conditions in which it is produced is vital.
Based on this concept, Bord Bia established
the Chefs’ Irish Beef Club, which unites
European Michelin starred chefs, who
work uniquely with prime Irish beef, from
France, the Netherlands, UK, Germany,
Belgium, and now Switzerland. According
to Bord Bia, the Chefs’ Irish Beef Club
gives a number of advantages to its member
chefs, including the reassuring knowledge
that the meat they use is 100 per cent
traceable, and a networking opportunity
to meet their peers and exchange ideas. In
turn, these highly regarded chefs serve to
endorse Irish beef as a premium choice by
18
IF Issue 6.indd 18
serving it in their restaurants throughout
Europe.
Once a year, member chefs embark on a
trip to Ireland which allows them to visit
the source of their products on Quality
Assured Irish farms. These trips provide
the chefs with a first-hand view of the strict
safety and traceability measures in place and
allows them to identify the key messages
they need to impart about the product
when serving it to discerning consumers.
Issue 6 2012
16/11/2012 14:42:09
Combining Ireland`s favourite
grocery brands
Rosaleen O’Hara
Export Manager,
Valeo Foods,
Merrywell Industrial Estate,
Ballymount,
Dublin 12
Tel: 00353 1460 8147
Mob: 00353 86 383 7674
Email: [email protected]
IF Issue 6.indd 19
16/11/2012 14:42:17
Industry
The Chef’s Irish Beef Club has remained
an exclusive group but has been growing
steadily, as Bord Bia continue to
develop the initiative and expand into
new markets, creating new chapters.
The inaugural meeting of the new
Switzerland chapter took place in Zurich
in October, bringing the membership
of the Club to over 60 and further
strengthening the premium positioning
of Irish beef within six of Ireland’s
key export markets. This significant
milestone saw a total of 10 high-profile
Swiss chefs inaugurated as new members
at a lunch reception which was hosted by
Bord Bia and the Irish Ambassador.
According to Bord Bia, the
inauguration of these new members
is a huge endorsement for the Irish
beef industry. At the event, the Irish
Food Board noted that on account of
high disposable incomes and a vibrant
foodservice sector, boosted by an all-year
round tourism industry, Switzerland
has always been a prime destination for
Ireland’s higher value steak cuts. In 2011,
Irish beef exports into Switzerland were
valued at €18.6m, an increase of 23 per
cent on the previous year.
John Keane at Bord Bia said: “ Since its
establishment in 2004, the Chefs’ Irish
Beef Club has seen award-winning chefs
market and promote the advantages of
Irish beef by serving it in Michelin star
restaurants across Europe. The result
is an increased presence of Irish beef in
the restaurant sector, which ultimately
builds product reputation. As brand
ambassadors, these high profile chefs
have become a formidable force in
generating positive publicity around
the Chefs’ Irish Beef Club and, indeed,
in ensuring that Irish beef is very much
the preferred choice of beef among
top chefs across Europe. While the
activities of the Chefs’ Irish Beef Club
are primarily focused on the top end of
the foodservice market, its benefits have
been far reaching in building the image
of Irish beef within mainstream retail
and foodservice sectors.”
With over 60 member chefs spread
across six chapters in Belgium, Britain,
France, Germany, the Netherlands and
now Switzerland, plans are in place to
enhance and expand the Chefs’ Irish
Beef Club into additional key export
markets for Irish beef over the course of
2013.
20
IF Issue 6.indd 20
an olympic feat
Good, high quality
ingredients are at the
heart of any successful
dish. No top chef would
work with below standard
raw ingredients and at
a competitive level this
becomes even more
apparent. Furthermore,
when the competition in
question is the Bocuse
d’Or – the Olympics of
the culinary world – the
right ingredients are
crucial.
So, the latest news from
Bord Bia that Irish
et voilá! pictured are ross lewis, Chef, Chapter one, Bernadette Byrne, Bord Bia and Florent suplisbeef has been selected
son, director of Bocuse d’or.
as a key ingredient
by the organisers of this globally renowned French culinary competition is a huge
endorsement of the quality of Irish beef.
According to Florent Suplisson, Director of Bocuse d’Or, “the choice of Irish steer
beef fillet for the 2013 edition of the Bocuse d’Or is in line with the tradition and
overall objective of our competition: the best products for a cuisine and gastronomy
of excellence which places the spotlight on products from all over the world. Our
International Organisational Committee takes great care in selecting the products
which will be presented to the candidates.”
The Bocuse d’Or held every two years in Lyon, France, is regarded as the most
challenging and prestigious haute cuisine cooking competition. Bocuse d’Or was
pioneered and named after a 3 Star Michelin Chef, Paul Bocuse, in order to broaden
the public’s understanding of the extraordinary dedication, practice and precision
required to execute the very finest cuisine. Securing a place as a chef in the Bocuse
d’Or Finals is an honour in its own right and involves months of preparation and
planning whilst beating off stiff competition in the World Series of qualifying rounds
and heats. The competition is structured like a sporting event, offering a spectacle
dedicated to cooking and chefs. A select group of the world’s leading young chefs from
five continents prepare dishes in front of a live audience and compete for the overall
award.
The 14th Bocuse d’Or, Florent Suplisson says, will deliver even more creativity and
spontaneity. The finals of the competition will take place in Lyon during the Sirha
trade show on January 29-30, 2013. It will see 24 international candidates compete
based on their culinary skill and imagination.
According to Bord Bia, the selection of Quality Assured beef fillet from Ireland
was based on its grass-fed nature, meaning the beef is of a high quality in terms of
tenderness, taste and texture. The decision was made following a rigorous and lengthy
process by the competition’s International Organisation Committee. The fillet of Irish
steer beef, Bord Bia says, which will be cooked for the competition is the result of the
sustainable farming methods of Irish beef farmers combined with the richness of their
farmlands. Traditional animal husbandry and production techniques respectful of the
environment, ensures Irish beef is a world-class product. Aidan Cotter, CEO Bord Bia,
says: “With a majority of Ireland’s beef exports destined for European markets, the
priority is to differentiate and position Irish beef by presenting a premium image to
secure its place in an increasingly competitive marketplace. Our partnership with the
Bocuse d’Or is aligned with our global strategy of working with chefs internationally
to raise awareness of the quality of products from Ireland. Irish beef has already
garnered a comprehensive following amongst many of Europe’s Michelin Star chefs.”
Issue 6 2012
16/11/2012 14:43:03
Branding
IF Issue 6.indd 21
16/11/2012 14:43:18
Branding vs
private label
As a result of the
global economic
slowdown, more and
more consumers are
turning to private label
purchasing. However,
it seems they are not
willing to abandon
brands completely.
Oonagh O’Mahony
reports from a recent
food conference where
key players from some
of Ireland’s leading
brands outlined
their strategy in
relation to branding
and private label
22
IF Issue 6.indd 22
Issue 6 2012
16/11/2012 14:43:19
According to Senator Mary Ann O’Brien,
Managing Director of Lily O’Brien’s
Chocolates, “private label is prostitution –
but it works”. Mary Ann stated this during
a panel discussion at a recent Grant
Thornton conference, which explored
the dynamics of supply and demand. The
Senator was explaining that, although
reluctant at first to go down the road of
producing private label chocolates, it can
have its benefits for business.
Fellow panelist, Conor Pope, Consumer
Affairs Correspondent for the Irish
Times, explained that own brand
purchasing in Ireland was growing in
popularity. According to Conor, private
label accounts for 30-35 per cent of
consumer purchases in Ireland. He
compared this to Germany, where private
label accounts for 60-70 per cent and said
that the shift to private label in Ireland in
recent years was not borne out of choice,
but rather, necessity. However, he noted
that, in some circumstances, consumers
are not willing to compromise.
Mary Ann believes that that is the case in
the chocolate industry, and while private
label chocolates sell, she says there is still
a market for premium chocolate brands.
Clearly, Conor agrees, saying that people
do not want to give a loved one private
label chocolates, saying, in reference
to buying a non-branded product, that
the message is: “I love you, just not that
much.”
A key point that Mary Ann made in
relation to those companies producing
both private label and own brand
products is that this is a path that
companies need to tread carefully down,
to ensure the private label product does
not cannibalise the brand. It is important,
she said, to distinguish between the two,
and in the case of Lily O’Brien’s the
company does not sell the exact same
product under the two guises. “Private
label is a tender business, you can win
it or lose it. But Lily O’Brien’s [brand]
remains pretty static.”
Also on the panel, David McKernan,
Founder and CEO of Java Republic,
explained that he, like Mary Ann O’Brien,
was reluctant to become involved in the
private label market but he sees how
private label can benefit the company
overall, stating: “Private label can cover
the overheads.”
While he was keen to stress his
commitment to the Java Republic coffee
brand, his main message was that,
regardless of the brand, the product
must be of good quality. He outlined the
case of one of the world’s largest coffee
brands, Starbucks, which he said failed to
Below are three case studies highlighted
at the conference, which outlined the
challenges and opportunities associated
with both maintaining brand identity and
producing own-brand products.
advertising. Nicholas went on to explain
that, like Lily O’Brien’s, Killowen Farm
offers something different in every market,
“otherwise, it would be detrimental to the
business”.
Killowen Farm
Killowen Farm in Co. Wexford produces
award-winning handmade yogurt. It
sells its premium product under its own
name, but also produces yoghurt under
Aldi’s Specially Selected label. Killowen’s
premium product retails at a higher price
than that of the Aldi product, however,
this does not appear to be infringing on
Killowen, as both products are trading
strongly. Nicholas Dunne of Killowen
Farm explained that the start-up costs
of a new business or brand are high, and
therefore, producing own-label products
assisted in building the company’s brand.
He added that the private-label product
allowed the company the opportunity to
experiment without have the burden of
Cully & Sully
In 2004, Cullen Allen and Colum
O’Sullivan founded the Cork-based
artisan food company Cully & Sully.
Cullen Allen explains that much of
the company’s marketing was carried
out via word of mouth or in face-toface interactions with customers. The
founders created a name for themselves
by travelling around Ireland to various
festivals and capturing media attention.
“We don’t spent money on above-theline advertising,” says Cullen. Following
a takeover by New York-headquartered
organic products group Hain Celestial
the company has begun to export its
brand internationally. Cullen says that
he is excited to once again take up the
replicate its international success in the
Irish market. This, he says, was because
the quality of the coffee and the way in
which it was brewed didn’t live up to
expectations.
“Nobody predicted coffee would be
recession proof,” he said, but noted that
he sees a growing demand for quality
coffee and expert baristas in Ireland.
This ties in with consumer research,
which shows that customers are willing
to compromise on the brand name, but
expect to purchase a quality product.
Evidence of this can also be seen in
the emergence of ‘luxury’ own-brand
products, such as Tesco’s Finest range or
Marks and Spencer’s Simply M&S range.
A further benefit to those producers who
opt to produce private label products
over branded products is that it affords an
opportunity to test the market’s reaction
to a product, without investing heavily
in branding material or advertising.
Commenting on this, Mary Ann adds:
“Ireland is the perfect playground to test
if you’re doing right and what consumers
like”. Sales of private-label/own-brand
products are worth an estimated €3
billion in Ireland at present. This
represents 30-35 per cent the grocery
trade, and that is projected to reach 40
per cent by 2015.
challenge of marketing the brand in the
UK as it did in Ireland.
The Jelly Bean Factory
Selling to markets all around the
world, under the Jelly Bean Factory
brand name, has required a great deal
of market research for the company
which has explored international tastes
and preferences. Richard Cullen, Joint
Managing Director of the Jelly Bean
Factory, said that, as well as catering for
international tastes, the company has also
had to invest in its brand image, ensuring
that there is visual consistency, while
ensuring it complies with regulations
in terms of ingredients or nutritional
content display. Shelf life and logistics are
also factors that the company had to take
on as it moved into the global market.
The company uses online social media,
such as Facebook, to promote the brand,
and Richard explains that it is important
to stay “on-brand” across all markets.
Issue 6 2012
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16/11/2012 14:43:20
The Brand Forum
Over 100 representatives from Irish
food and drink companies gathered
in the Science Gallery, Trinity College
Dublin for one Bord Bia’s Brand Forum
earlier this year. Delegates heard about
the importance of innovation and
branding from leading food companies
such as Innocent and Kerry Foods. Irish
companies in attendance included
Ballymaloe, Broderick’s Bars, Tayto,
Lily O’Brien’s Chocolates and Barry’s
Tea. Pictured at the event were guest
speaker Dan Germain, Head of Creative, Innocent and Helen King, Head
of Insight and Innovation, Bord Bia.
THE BRAND FORUM WAS ESTABLISHED BY BORD BIA IN 2001 IN COLLABORATION WITH
SENIOR INDUSTRY PLAYERS AND NOW HAS IN EXCESS OF 120 ACTIVE MEMBER COMPANIES.
RECOGNISING THE IMPORTANCE OF BRANDS
within Ireland’s wide-ranging portfolio of
food and drink products, in 2001 Bord Bia
established a platform for food, drink and
horticulture brand owners, (plus aspiring
ones), to grow their business by coming
together, pooling individual expertise and
ideas, and sharing their common concerns.
The focus of the Brand Forum work
is consumer centric and commercially
pragmatic, says Niamh MacHale at Bord
Bia, who manages the Brand Forum and
is a member of Bord Bia’s Information &
Insights team. “Brands offer security and a
direct connection with the consumer. This
is important in a market where access
to the consumer is controlled by the
retailer. Ireland’s food and drink industry
is fortunate to claim global brands of
exceptional power and provenance both
on the home market. The idea behind
the creation of the Brand Forum was to
provide a dedicated hub for Irish food and
drink brand owners and aspiring brands,
where they could exchange ideas and work
together on problem solving.”
According to Niamh, there has been real
cooperation between member companies
over the years, with some companies even
working together on distribution and
24
IF Issue 6.indd 24
logistics and helping each other penetrate
new export markets.
The engine behind the Brand Forum,
Niamh says, revolves around quarterly
events, where brand owners bring stories
of their food and drink brands – sharing
their expertise and insights to share with
members on a quarterly basis. “Over the
past 12 years a wide variety of brand owners
have addressed Brand Forum members,
these include: Kerry Foods, Kepak, Barrys
Tea, Butler’s Chocolates, Coca Cola, Pepsi,
Cashel Blue, Diageo, Flahavan’s, The
Butler’s Pantry and Jameson.” Bord Bia also
offers dedicated branding advise for member
companies, and workshops in social media,
PR and design.
The annual Brand Forum Gala Dinner
presents an influential industry leader with
global experience, who is asked to address
members. This year the event takes place
on November 22, and the keynote address
will be given by Adele Cooper, Director of
Global Business Partnerships at Facebook,
based in London, who will look at how
leading global brands are managing their
social media.
Commenting on trends witnessed over the
years since the establishment of The Brand
Forum, Niamh notes that the rise of private
label in the retail sector cannot be ignored.
“Private label is not going away and is only
getting stronger.” On a more local level
she says that consumers are supporting
local products, while fair trade and ethical
choices continue to influence purchasing
and are becoming evident in more
mainstream channels such as McDonald’s.
Health and wellness is a trend, she says, that
remains strong, but has moved in recent
times from being a reactive trend to a more
proactive one: “People are more educated
and are seeking out healthy choices not just
for their body but also for their mind.”
The newest feature of The Brand Forum is
the recently launched Brand Health Check,
which offers member companies the chance
to ‘health check’ their brands, looking at
issues such as brand loyalty, competitiveness
and market positioning.
Concluding, Niamh says: “The Irish food
and drink industry has some fantastic
brands but the continual challenge of
branding is to remain dynamic and to be
able to be flexible and respond to changing
consumer demands. We are working
closely with companies to help them build
strong brands and to increase the chances
of success when bringing new products to
market.”
G
b
r
c
s
F
C
E
w
©
T
th
Issue 6 2012
16/11/2012 15:44:00
Grant Th
Say “no” to the
cookie-cutter approach
Grant Thornton has significant experience in the food and
beverage sector from the farm gate through to processing and
retail. Our experience means that we can readily identify the
critical issues affecting your business and then quickly provide
specific solutions.
For further information contact
Ciara Jackson, Head of Food & Beverage
E [email protected]
www.grantthornton.ie
© 2012 Grant Thornton. All rights reserved. Authorised by the Institute of Chartered Accountants in Ireland to carry on investment business. Grant Thornton is a member firm of Grant
Thornton International Ltd. (Grant Thornton International). Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered independently by
the member firms.
IF Issue 6.indd 25
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16/11/2012 14:43:23
01/02/2012 15:17:52
Brand leaders
Irishfood profiles some of Ireland’s leading international brands.
Guinness
Guinness is one of Ireland’s most iconic brands and one of the most successful beer brands worldwide.
It is brewed in almost 60 countries and is available in over 100, with exports from Ireland are valued at
more than €1 billion. Approximately 850 million litres (1.5 billion imperial or 1.8 billion US pints) are sold
annually and Guinness represents about half of Diageo’s global beer portfolio.
According to preliminary results (year ended June 30, 2012), the brand delivered 2 per cent net sales
growth in the developed markets as the successful launch of Guinness Black Lager together with price
increases on Guinness Kegs drove 9 per cent net sales growth for Guinness in North America. In the
emerging markets, net sales were up 8 per cent with strong growth across Africa and continued share
gains and price increases in Indonesia. Nigeria is now the biggest market for Guinness by net sales
and the brand further extended its footprint this year with double-digit growth across the other Africa
markets.
Recently, Diageo marked the beginning of construction of a new €153 million brew house at its St James’s
Gate brewery in Dublin with the lowering of a ‘time capsule’ at the site. The investment at St James’ Gate
will secure the brewery’s future, which is a key part of the brand’s identity – being the home of Guinness.
The power of the Guinness brand on a global level is clearly demonstrated in Diageo’s ingenious
marketing initiative - Arthur’s Day. The day was first introduced in 2009 to celebrate Guinness brewery
founder Arthur Guinness’s 250th birthday and today it continues as an annual event, which this year saw
people in 54 countries around the world raising a glass of the black stuff to Arthur on September 27.
Baileys
In 1974, drinks company Gilbeys introduced Bailey’s Irish liqueur cream to the
world. While the product was new, the idea of combining the Irish traditions of
distilling and dairying had been mooted for some time. The final recipe included
the rather more exotic additions of cocoa nibs, vanilla pods and caramel and
a drinks classic was born. Bailey’s success led to the creation of a new drinks
category, the cream liqueur, one in which a number of Irish companies now
operate. Today, Baileys is one of Ireland’s most well recognised brands on an
international scale and is the world’s top selling liqueur. Approximately 250 million
litres of milk per year go into the making of Baileys, and in 2011, 90 per cent of
Baileys was exported.
As a brand, Baileys has been perceived as an ‘occasion drink’ and is a popular
choice at Christmas. However, in recent years, brand owner Diageo has looked
to reposition the brand in order to encourage consumption on more informal
occasions as well. The approach has been to offer range extensions, with flavours
such as Baileys with a Hint of Mint Chocolate, Baileys with a Hint of Crème
Caramel launched and different pack formats such as Baileys Minis. A key move in
sponsorship was to link in with Sex and The City, targeting an audience of young
women and positioning the brand in a fresh, modern and fun way.
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Issue 6 2012
16/11/2012 14:43:24
Kerrygold
The Irish Dairy Board (IDB) is Ireland’s largest exporter of premium dairy
products and a leading international food company with a global footprint
that extends to over 80 countries. The IDB owns the internationally renowned
Kerrygold brand – the Irish dairy industry’s most important marketing asset
– along with other brands including Pilgrims Choice and Beo. Kerrygold,
packed in the now famous gold foil, was launched in 1962 in the UK. By the
time it had returned home to Ireland for its domestic launch in 1973, the
product had achieved export sales in Malta, Cyprus, the Middle East, the
Americas, South East Asia and Germany (where today it is the leading butter
brand with a market share of 14.1 per cent in value.). Central to the marketing
of Kerrygold is the image of Ireland’s rich green pastures and the creamery
buttery that results from the grazing dairy herds. The brand packaging has
changed slightly over the years, and a new logo was unveiled in 2010, but the
classic image of a grazing cow remains to the fore. 2011 saw the successful
rollout of the redesigned iconic Kerrygold brand and pack design. The
new-look premium range of Irish dairy products debuted in Belgium and
have since been launched in over 50 markets involving 30 global Kerrygold
production and packaging sites.
Cheestrings
Kerry Foods Cheestrings was launched in the Ireland and Britain in 1996 and is now the
number one children’s cheese snacking brand in its home markets. For some years, Kerry
Foods has also been exploring export markets in Europe and is now available in most
supermarkets across France, Holland, Belgium and most recently Germany, where its
problem-solving qualities for lunchboxes and fun qualities for children are being discovered
by another audience.
As EU Marketing Director Denis O’Riordan explains, mums love Cheestrings because it is
a rich source of calcium and Vitamin D, which their children need for growth and bone
development; and kids love Cheestrings simply because it’s so much fun to eat. “It’s
refreshing when a single core brand truth finds resonance with a growing international
audience,” he says. This doesn’t mean Kerry can offer exactly the same pack, communication
or, indeed, product to all markets. After extensive research in local markets, it became clear
that the brand’s core proposition ‘Good Food Made Fun’ could not be told the same way in
all markets. Careful tailoring was required to fit the local requirements while staying true
to the core brand truth. For example, in France the brand name itself had to be adapted to
‘Ficello’ to suit consumer needs.
“The learnings gained in these markets over the past few years will stand Cheestrings in
good stead as it examines new opportunities,” Denis concludes.
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Silver Hill Foods
Silver Hill Foods is Ireland’s only fully integrated family owned duck company, and the company
has a global reach with its award-winning Silver Hill duck product range. For over 50 years,
exports have played an important part in the company’s marketing strategy. As a result, the
Silver Hill brand is well known and highly respected throughout Europe, China and beyond. Now
employing 150 people, the company was founded by Ronnie and Lyla Steele in Emyvale, Co.
Monaghan — the present Managing Director is their son Stuart Steele.
One of the main reasons for the company’s success is that all aspects of duck production are
owned and controlled by Silver Hill Foods — from breeding, egg production, hatching and
selection to processing and cooking. The unique Silver Hill hybrid duck has been developed over
the years to produce a duck that is full of flavour, succulent, tender and consistent in its quality.
This breed is exclusive to Silver Hill Foods.
The brand received real recognition among foodies when it was chosen by celebrity chef Heston
Blumenthal as an ingredient for his restaurant. Heston reportedly searched the globe to find
the best duck to make a traditional Peking Duck dish, and travelled through China and most
of Europe before ending up on the outskirts of the sleepy village of Emyvale, Co. Monaghan to
choose Silver Hill duck.
Silver Hill has won many awards for its product. In 2012 alone, the company has received several
including Gold in the Blas na hEireann poultry category for our Crispy Duck and Pancakes and
numerous gold stars in the 2012 Great Taste Awards for its duck products.
Jameson
Jameson is one of Ireland’s biggest brands and has helped to drive the popularity
of Irish whiskey on a global scale. From 2005-2010 Irish whiskey was the fastest
growing sprits category worldwide and Jameson has spearheaded that growth: as
well as being the biggest selling whiskey in Ireland, Jameson is sold in more than 120
markets. Some 51 of these are in double-digit growth – with the US growing at 29 per
cent. It is now the second biggest international whiskey brand in Russia and South
Africa. Irish Distillers has forecast that in 2012 Jameson will exceed global sales of four
million nine-litre cases.
Head of Production at IDL, Peter Morehead, explains: “There are a number of factors
contributing to this success. Firstly, people love the taste – it is a very smooth,
approachable drink. In addition, the heritage behind the brand is very important to
consumers. And as part of the Pernod Ricard group, we have a strong distribution
network, which gives us huge leverage on a global scale for a local brand. We have
grown very quickly since joining Pernod Ricard’s stable of brands to become the No. 1
selling Irish whiskey in the world.”
Building brand recognition is key, and Irish Distillers has a record number of 35
Jameson Graduates in 2012 working at a grass roots level, introducing the brand into
bars across the world and getting the message behind the brand and its heritage to
the customer.
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Issue 6 2012
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The Jelly Bean Factory
Irish-owned Aran Candy supplies gourmet jellybeans under The Jelly Bean Factory brand and exports 98 per cent of its product to 55 markets
worldwide. Producing 12 million gourmet jellybeans per day, the company’s brand is on a serious growth curve: most recently adding Norway to its list
of new market launches.
“We supply some of the biggest retailers in the world under “The Jelly Bean Factory” brand,” says Richard Cullen, Joint Managing Director. “The UK is our
biggest export market where the brand has over 40,000 distribution points. Scandinavia along with Canada, and several other markets are showing
strong growth and massive potential for the brand”.
Amongst the brand’s key USPs is the fact that all 36 flavours of gourmet jelly beans are made with all natural colours and flavours. No gelatin is used, so
the products are suitable for vegetarians, and they are also nut free and gluten free.
Commenting on the brand’s strength, Richard says: “The Jelly Bean Factory is known for its innovative packaging formats and creative concepts,
designed to suit a vast array of customers. We supply to
a wide variety of customers and so our packaging
must cater for each different category of
trade, whether that be travel retail, gifting or
supermarkets. Richard highlights one of the
company’s newest packaging developments, the
‘Pop A Bean’, as an example of this. ‘Pop A Bean1 is
a 125g container that will dispense one gourmet
jelly bean at a time.
Lily O’Brien’s
Established in 1992 – and named after the founder’s eldest daughter – Lily O’Brien’s today exports
its chocolates to more than 10 markets worldwide, including the UK, the US, Australia, New
Zealand, Norway, Sweden and Denmark.
Located in a state-of-the-art factory in Newbridge, and manufacturing 60 tonnes of chocolates
per week, it is now one of Ireland’s most recognised global brands, and as well as supplying top
international retailers, the company has been uniquely effective in building and maintaining
relationships with airline customers. Talking to IRISH FOOD, founder Senator Mary Ann O’Brien
says: “We have three different sides to our business. Firstly, our main business is our brand Lily
O’Briens. We are working very hard in our export markets, particularly in the UK, to bring our sales
up to the next level with the brand. We are also on 23 airlines around the world – this is hugely
important business and a great marketing tool for the brand. We are on the biggest airline in the
world (since United Airlines and Continental merged), serving six million passengers a year alone
with this customer – and there are 22 other airlines stocking Lily O’Briens as well. The third side of
our business is in private label, where we are very successful. We have adopted LEAN practices to
ensure efficiency and offer a competitive price to buyers.”
Last year, the company built a dessert factory and desserts such as Eaton Mess, Banoffi and Sticky
Toffee Pudding are currently being produced and being supplied to the foodservice sector. Plans
are also in place to also bring the dessert range into the retail market.
Issue 6 2012
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16/11/2012 15:45:34
The gold standard
IrIsh seaFood eXporTs To ChIna have InCreased By
80 per CenT sInCe 2011. on The BaCK oF ThIs suCCess,
Two IrIsh seaFood CompanIes are JoInIng ForCes To
TaKe advanTage oF The opporTunITIes In ThIs growIng
marKeT To launCh a new seaFood Brand In ChIna.
30
IF Issue 6.indd 30
in the pASt FiVe yeArS there has been a
noticeable focus on the Chinese market
for growth within the Irish food and drink
industry, across a number of sectors. Dairy
has commanded much attention, with
companies such as Kerry and Glanbia
setting up facilities on the ground in
Issue 6 2012
16/11/2012 14:43:46
China, signaling real commitment to the
marketplace. Meanwhile, Irish pig meat
companies are keen to develop business in
the region and beef producers are eager
to get market access. However, one sector
that can boast real progress in China is
the seafood sector. Traditionally, the Irish
seafood sector has concentrated on key
markets in France, the UK, Spain and
Germany, with smaller niche markets in
Asia. However, with an ever-increasing
population and middle class dynamic,
China offers the Irish seafood sector the
potential for real growth. Total exports
of Irish seafood to China in 2011 were
valued at €2.9 million and latest data, up to
July 2012, details exports at €5.3 million.
This equates to an 80 per cent increase on
2011 before year-end. According to Bord
Iascaigh Mhara (BIM), Irish Sea Fisheries
Board, this dramatic increase demonstrates
the new business relationships Ireland
has developed with key Chinese buyers
in recent years. Trade in pelagic seafood
accounts for €2.1 million of total exports in
2011 and €4.7 million of exports for year
to date in 2012. The demand for premium
Irish shellfish, mainly crab and crustaceans,
is also growing solidly and expected to be
valued at over €1 million during 2012. However, in order to build on this initial
success and further grow our market share,
the Irish seafood sector needs to build scale
and improve route to market structures.
BIM has been working with the industry
to achieve this and one of the outcomes
of this support is the recent launch of
a new Irish seafood brand aimed at the
Chinese market by two successful Irish
companies – Atlanfish Ltd and Rockabill
Shellfish Ltd. Branded ‘Atlantic-Gold’, it
encompasses a range of shellfish (prawns,
crab, lobster, razor clams, scallops) and
whitefish products. Initially the range will
be available in the foodservice sector and
this will then be extended to retail.
Donal Buckley, BIM’s Business
Development and Innovation Manager,
explains: “Building scale in the Irish
seafood sector is a priority for BIM. Our
seafood enjoys an excellent reputation but
we need to pool individual companies’
resources so as to reduce duplication costs,
boost profitability, improve customer
service and time to market. The joint
venture between Atlanfish and Rockabill is
an excellent example of the way forward for
our sector.”
The selling points for the Atlantic-Gold
brand are sure to attract attention amongst
buyers in China. Both Atlanfish and
Rockabill run successful seafood businesses,
employing 170 people between them,
with collective revenues of €30 million,
processing facilities and their own fishing
vessels. Together, the companies can offer
a greater volume of high-end seafood.
With 75 per cent of the total catch of Irish
prawns, 65 per cent of Irish whitefish and
50 per cent of Irish crab, the companies
can guarantee volume, quality, consistency,
full traceability and reliability in the
Route to market
Bord Iascaigh Mhara (BIM), the
Irish Sea Fisheries Board, is the Irish
State agency with responsibility for
developing the Irish Sea Fishing and
Aquaculture industries. BIM provides
commercially relevant and innovative
services to the Irish seafood industry
that drive growth opportunities, add
value, enhance competitiveness and
create jobs in a sustainable, natural
resource based industry for the benefit
of coastal communities - www.bim.ie
The BIM ‘Route to Market Scheme’
(utilised by Atlanfish and Rockabill
to develop their new brand) offers
funding and support to assist Irish
seafood companies to develop scale
/ work as a collective to develop new
markets and build scale, helping
them to compete in the international
seafood market. Presently BIM has
seven projects under the 2012 RTM
scheme, supporting a diverse range
of companies and species to develop
markets in Africa, Europe, Asia and
the domestic Irish market.
marketplace. In addition to these products,
razor fish is caught, kept live on-board in
tanks and then flown live to China.
Bill Price, President of Rockabill Shellfish,
explains “We are delighted, along with
our colleagues in Atlanfish, for the
encouragement and support from the
agencies for this development, especially to
BIM. The brand that we have developed
offers a range of premium quality seafood
from the pure waters around the coast of
Ireland. We now offer ‘straight from the
sea’ taste and a ‘One Stop Irish Seafood
Shop’ to the Chinese market.”
The Atlantic-Gold product range was
exhibited at the recent China Seafood
Show in Dalian, November 6-8.
Rockabill Shellfish Limited
A family-run company with more than
30 years’ experience in the fishing
industry, Rockabill Shellfish Ltd operates
its own fleet of trawlers, refrigerated
trucks and two Irish processing plants
located in Dublin and Cork. Rockabill
supplies quality ‘Irish’ seafood products,
including frozen and fresh scampi,
razor claims, monkfish, velvet crab,
crab, cockles, whole fish and fish
fillets. Through direct ownership of all
logistics, Rockabill controls the entire
product cycle.
Atlanfish Limited
Atlanfish is a leading processor of Irish
seafood products in Carndonagh, Co.
Donegal. The company serves the
specialised and diverse needs of the
retail, wholesale and catering trade
for the seafood sectors worldwide.
Established in 1976, the company has
grown from inauspicious beginnings in
a small unit to a quality-driven business
occupying a purpose-built factory
equipped with the latest production
technology. A stringent quality
management programme not only
embraces all production processes but all
aspects of business.
Issue 6 2012
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Brand new service
Not all branding is
consumer facing:
companies delivering
product on a B2B level
also have to offer their
customers a distinctive
brand promise and
communicate the right
messages about the
product and/or services
they are selling. This
year, cooked meat
ingredient company,
Dawn Farm Foods,
has created two new
sub-brands to bring
clarity to the valueadded services that
the company offers.
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IF Issue 6.indd 32
Dawn Farms is the leading multi-species
cooked meat ingredients company
in Europe. The company provides
customised cooked and fermented meat
ingredient solutions to leading brands in
the manufacturing, retail and foodservice
sectors. The Dawn Farms group of
companies includes two state-of-the-art
production facilities in Ireland, TMI
Foods in the UK producing cooked
bacon, protein-based snacks and roasted
vegetables, and a partnership with Minerva
Foods SA in Brazil, the foremost cooked
meat ingredients specialist in South
America.
Talking to Irishfood, John McGrath, at
Dawn Farm Foods explains: “At Dawn
Farms, quality is never an accident. It
comes from recruiting the best talent,
choosing the best suppliers, investing in the
latest technology, encouraging the brightest
ideas and building great relationships.
Issue 6 2012
16/11/2012 14:43:48
These are the ingredients that set us
apart. And as any chef will tell you: great
ingredients make great food. This tells
you all you need to know about the values
of our business. Everyone in our company
is there for one reason - to meet the needs
of our customers. You will see this simple
philosophy at work in everything we do. It
defines who we are, challenges us, forces
our minds to be open and to be a worldclass company.
In addition to refreshing its logo earlier this
year, Dawn Farms also created two new
sub-brands to bring clarity to the valueadded services on offer: NECTAR and
Food Plus+.
NECTAR
The creation of its innovative NECTAR
brand was the result of seeing opportunity
amidst the difficult climate food companies
find themselves in today, explains John:
“The food industry by its nature relies
heavily on natural resource consumption
and has, therefore, been impacted on a
much larger scale than other industries
by raw material shortages and rising feed,
fuel and energy costs among other factors.
When this is set against the backdrop
of an EU economy that has re-entered
recession and the subsequent knock-on
effect this is having on consumer sentiment
and spending, it is hard to deny that we
are living in unprecedented times. Rather
than dwell on the negative, Dawn Farms
recognises the opportunities that exist in
these extraordinary economic and social
circumstances to leverage the USPs of our
business both to our benefit and the benefit
of our customers.
As part of a strategic review, Dawn
Farms made a decision to engage in
more proactive innovation – to bolster
the company’s existing strategy of being
the cooked meat ingredient partner
to a carefully selected list of blue-chip
companies across the European the
sandwich and pizza industries ready meal
and recipe dish sector, and the foodservice
sector.
“Dawn Farms already had a reputation
as an expert cooked and fermented meat
ingredients partner, but the majority of
new products represented incremental
innovation; they were always created in
reaction to specific customer briefs. A new
objective was laid down: to become a true
value-added partner to our key customers
through proactive innovation. We would
achieve this through providing an industryleading service package – to include
integrated food innovation capability – built
around our core products. Having opened
our new food science and innovation centre
in 2009, the next step was to devise and
implement a robust stage-gate innovation
process. Following extensive consultation
with internal and external stakeholders and
experts, NECTAR was born.”
NECTAR is Dawn Farms’ proprietary
stage-gate innovation brand. The acronym
stands for Need, Explore, Create, Test,
Action and Review. All innovation projects
are now run using the process, allowing us
to become a faster, better and more efficient
partner to our strategic partners.
“The power of NECTAR lies in identifying
and converting marketplace trends into
innovative new products, which put Dawn
Farms ahead of the competition – and keep
our customers on top of their respective
categories. With each step, we build more
strength and relevance into new products
by providing the full, value-added service
package. Through the NECTAR brand,
our business has evolved from a high quality
cooked and fermented meat ingredients
manufacture to a true value-added partner
to customers, providing a full and robust
innovation service and winning product
solutions.”
Food Plus+
The company has always stated its
commitment to producing the highest
quality meat ingredients. But while Dawn
Farms ticks all the regulatory boxes, from
HAACP to BRC, John says, for them
it is still not enough. “That is why we
created Food Plus+, our proprietary food
safety standard. Our Food Plus+ team
takes a forensic approach to food safety
and quality using the latest biosecurity,
micro-surveillance and pathogen
profiling techniques to ensure that you
are provided with the safest ingredients
in the marketplace. As a family owned
company, our philosophy is to provide a
safe and nurturing environment for our
staff, to be active and positive contributors
to the communities in which we live and
work, and to be good stewards of our
environment.” The company was one
of the companies selected by Bord Bia
to be a pilot company for Origin Green,
Ireland’s new sustainability development
programme for the food and drink
industry - the first programme of its kind
in the world. “Through Origin Green we
are proactively meeting the challenges
of reducing our energy and water usage,
managing our carbon footprint and waste,
and developing our staff and community
programme.”
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Loyal customer
Heritage, price, identification and economic recovery – these four points are key to
retaining and growing consumer loyalty to Irish brands, according to a Bord Bia
REPORT. IT offers an interesting insight into the level of loyalty consumers have for
products produced within their own country and the perception of Irish brands today
The ‘Retaining Loyalty to Irish Brands’
report was the follow-up to a study
published by Bord Bia in 2009. Both
reports focus on the same themes and
target the exact same demographics
in their market research and both
surveyed 400 people making it nationally
representative. These surveys reveal
the nation’s consumer loyalty and
understanding is shifting and what affects
the economic crisis has had on attitudes
towards Irish brands.
The most recent report points to the
importance of heritage, tradition,
nostalgia, familiarity and quality as reasons
why many consumers choose Irish brands,
with the respondents also placing a high
value on the link between buying Irish and
economic recovery.
The report also underlines that there
are serious issues with confusion around
knowing which brands are Irish and which
are not and the idea that Irish brands
are more expensive than their imported
counterparts.
What is an Irish brand?
The survey revealed that there was a
significant change in how people defined
Irish brands. In 2009, 84 per cent defined
Irish brands as ‘manufactured in Ireland’.
However, that figure in 2011 dropped to
74 per cent, with more consumers opting
to define Irish brands as those that have
“been around for decades” – this category
rose by 10 per cent in 2011 to 25 per cent.
Heritage seems to be more important
to Irish consumers now than in 2009.
Respondents loyal to Irish food brands
say they are because they represent “the
best quality” and because they “are most
familiar with” these brands. Over half of
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IF Issue 6.indd 34
respondents agree that “Irish brands are
what I grew up on, I try to keep those
traditions alive”.
Some brands are ‘emotionally embedded’
in the Irish consumer consciousness,
according to Bord Bia, such as Tayto,
Dairygold, Ballygowan, Kilmeaden, Barry’s
Tea, Galtee and Flahavan’s.
These are brands that are talked about
as “the things you send to people living
away from home” – this, Bord Bia says,
gives them real strength. It means they are
iconic and are seen as “almost evocative of
Ireland itself”.
However, the study also points out that
there is a large number of brands that
consumers think are Irish but are not
completely sure. Bord Bia calls this
group the ‘likely Irish’: they have lower
emotional embedding than the more
iconic Irish brands, but are familiar and
traditional even if consumers are not
convinced they are Irish. The report notes
that this may demonstrate how some
brands may not be underlining their Irish
credentials.
The report states that the semiotics of
Irish brands are consistent with the 2009
findings and include: names, imagery, Irish
accents (for TV and radio advertisements),
location and place names, Irish marks
and the small print (which says where the
product is from).
These signals are, as in 2009, significant cues
to the consumer and Bord Bia says that these
cues are unlikely to change.
Kilmeaden was recognised by most
consumers (99 per cent) to be Irish, scoring
higher than Guinness, Tayto or Ballygowan.
Bord Bia says this recognition is aided by the
semiotic cues in its advertising, its name and
its on-pack imagery.
The study also points to the power of
linking personal stories and brands,
saying Cully & Sully has been successful
in this area. Even though it is a relatively
new brand, due to consumers seeing
the owners communicate their brand
story on television, 68 per cent of people
recognise it as Irish. Being recognised as
Irish can lead to significant boosts in sales,
as was detailed in the 2009 report. When
shoppers realised that Goodfellas is Irish,
purchasing intent jumped significantly (by
48 per cent) and all imported competitors
suffered. This underscores the importance
of making consumers realise which brands
are Irish, according to Bord Bia. However,
it also points out that not all brands
can leverage this power, as sometimes
consumers simply forget which brands are
Irish.
Triggers and barriers
The most important triggers to the
purchase of Irish food and drink brands,
identified by both studies, are taste and
quality. Consumers loyal to Irish brands
say they are because they are familiar with
the brands, have grown up with them and
because they are the best quality available.
The emotional triggers of security, safety
familiarity, pride, family tradition and
comfort remain equally important.
The biggest change since 2009 is the shift
of some triggers from being rational to
being emotional. In 2009, ‘saving Irish
jobs’ was something seen by consumers
as something they should do, yet other
triggers like taste, quality, flavour and
freshness superseded it. However, in the
2011 survey, consumers see this issue on
a much more emotional level. Almost a
third of respondents (31 per cent) said they
Issue 6 2012
16/11/2012 14:43:49
ay
are now buying more Irish food and drink
brands – 90 per cent of these people said
this is because they want to support the
economy and Irish jobs.
Price is seen as the main barrier to
purchase in both surveys. But while it is
still the major issue, the way consumers
think about price now is different. In 2009,
consumers talked about a ‘rip off culture’
but now this is not the case. Instead,
people are saying that their own personal
circumstances have changed, which is why
they cannot afford branded products.
Consumer types
Irish Loyal
Bord Bia defines ‘Irish loyal’ consumers
as those who would buy Irish brands
even if the price is more than 50c higher
than an imported brand. These people,
according to the report, believe that Irish
foods have the best taste and quality. They
also are proud of Ireland’s agricultural
and craftsmanship traditions and think
buying Irish is more eco-friendly. They
are engaged in the ‘morality’ of buying
Irish and like to shop in supermarkets
that stock Irish products. This consumer
segment represents 18 per cent of the
Irish population. These people tend to
have more disposable income than other
segments – paying more for Irish brands
does not mean they have to choose
between products.
Non Irish Loyal
These consumers do not care if the brand
they purchase is Irish or not. Instead,
they value taste, quality, quantity and
value. If they could afford it, they would
not necessarily prefer to buy Irish. The
majority of these people have tight
budgets, according to the report. However,
the amount of non Irish loyal consumers
has almost halved since 2009. In 2011, it
was reported to be at 15 per cent, while it
was previously 29 per cent. Bord Bia says
this “dramatic shift” shows that the general
public equates buying Irish to helping
economic recovery.
Conditionally loyal
This group of consumers care about
buying Irish but, according to the report,
will only do so under certain conditions
(i.e. they answered in agreement when
asked if they would buy Irish if the price
was less than 50c more than a foreign
brand). Although they are conscious of
buying Irish, “they shop first and buy Irish
second”. However, this segment of the
market believe, according to Bord Bia, that
Irish brands score highly in taste, quality
and heritage. The study revealed that these
people buy Irish for “less niche” reasons
than the loyal consumers – they believe
they are supporting Irish businesses and
helping keep others in jobs. This segment
was the biggest group in both the 2009 and
2011 survey, but has grown significantly by
14 per cent to 67 per cent.
Price
The majority of consumers surveyed (69
per cent) in the Bord Bia research agreed
with the statement ‘Irish food and drink
brands tend to be more expensive’, while
over half disagreed that ‘Irish brands are
the best value’.
However, the survey also revealed that one
third of consumers say they are buying
more Irish brands than they used to and
only 10 per cent reported they are buying
less. The most frequent reason for buying
more is to support the economy, but over
a quarter also believe that the price of Irish
brands has dropped, they are better quality
and they taste better.
Just over eight out of 10 respondents to
the 2011 survey agreed with the statement
“Irish brands have gone up in price, they
are more expensive now”, while just
under half reported that the quality of
supermarket own brands have improved.
A group of people from a variety of
different age and social groups believe that
Irish brands are dearer than others – not
just by less well off consumers. Sixty-five
per cent of people think that Irish brands
are more expensive than imported brands,
while 87 per cent think that Irish brands
cost more than own label brands.
“The challenge for Irish brands is to
move the consumer mindset beyond price
to the point that it influences purchase
behaviour less,” says Bord Bia. However,
it also takes into account how difficult this
will be in the face of the recession and
the perception that own label brands now
have increased quality and value, saying:
“Price is used as a stick to beat Irish brands
with … This myth can be and must be
dispelled.”
Motivation
Loyalty
Bord Bia suggests a way of driving
consumer loyalty in the future may be the
introduction of a “loyalty mechanism for
Irish food”. This was an idea researchers
saw repeatedly during surveying; also
noting ‘buy one get one free’ and ‘two
for the price of one’ offers are short-term
fixes, resulting in continued conditional
behaviour on behalf of consumers.
Creating loyal consumers, converting
those that are conditional loyal to loyal,
is the key to safe guarding Irish brands,
according to the report.
Under 35s
This group represents 38 per cent of
the national sample, but this segment
represents well over half (58 per cent)
of not loyal consumers. The aim for
Irish brands, says Bord Bia, is to convert
this group into the conditionally loyal
segment. One approach to doing this,
Bord Bia says, is developing an industrylevel appeal to this group, starting with
clearer identification of Irish brands and
addressing the issue of price.
Expense
The report states this is “the elephant
in the room for Irish food and beverage
brands”. In both studies, consumers
brought up this issue again and again.
According to Bord Bia, the way to
overcome this is could be to diligently
price check and compare with imported
brands. Consistent delivery on price could,
according to the report, help to embed the
message in consumers’ minds.
Recommendations
In order to fully harness the insights
gleaned from the latest report, Bord
Bia suggests that Irish brands should:
endeavour to drive loyalty by addressing
negative price perceptions around Irish
brands; target under 35s directly in order
to convert more of them from the ‘not
loyal’ category into, at least, ‘conditionally
loyal’ consumers; overcome the price
barrier by policing the differences
between the prices of indigenous brands
and imported rival brands; and leverage
national pride among customers, to make
them feel they have the power to change
our current economic situation.
Overall, the report serves to highlight
the importance of understanding your
consumer when developing the message or
promise of your brand, as well as exposing
the perception of Irish brands and the
quality and value they offer.
Issue 6 2012
IF Issue 6.indd 35
35
16/11/2012 14:43:50
The real deal
auThenTICITy and TrusT are aT The hearT oF any
sTrong Brand wIThIn The Food seCTor Today. sTeve
payne and oIsÍn hursT oF leadIng InTernaTIonal
BrandIng agenCy, The Brand unIon, TalK To
Irishfood aBouT The ImporTanCe oF ImparTIng a
True and CredIBle message To your Consumer
Authenticity iS A Key driVer for consumers
in the current climate,” says Steve Payne,
Managing Partner at the Dublin office of
global branding agency, The Brand Union.
“The message has to be believable and
honest or the consumer will not see it as
credible.”
As part of the WPP group, The Brand
Union’s Irish office works on both local and
international projects, collaborating with
the group’s international office base. Its
international clients include Pernod Ricard
and GSK. On a domestic level, The Brand
Union has worked on some of the biggest,
most iconic brands within the corporate
sector, such as the GAA, Vodafone, The
National Lottery and Eircom; as well
as customers within the FMCG sector,
including Glenilen, Cully & Sully and
Johnston Mooney and O’Brien.
According to Steve, the message behind a
brand is crucial, but equally important is
how that message is communicated and
the experience it offers the consumer. “For
us, it’s all about a compelling truth. The
product can be relevant and offer added
value, but it is about how you package this
up and communicate it to make it a viable
and distinctive piece in the marketplace.
If the narrative behind a brand is true
and credible, it is much easier to package.
Where it becomes difficult is if the message
is confused or contradictory, making it
harder for the consumer to interact with.”
This ‘authentic truth’ also allows the
consumer get closer to the source of a
product. “We see provenance as a really
powerful message currently in the mind
of the consumer. It is not just about the
36
IF Issue 6.indd 36
country of origin, but all the way down to
the square mile from where it came from.
People want to get closer to the source of
things – it is a backlash based on the overindulgence of recent times. Consumers feel
more emotionally engaged and reassured
now if they are closer to the people who
are making the product.”
Creative Director, Oisín Hurst, agrees,
and sees storytelling as a key tool that
many Irish companies can use to reach
out to consumers: “There is a global trend
towards reducing the physical distance
between the consumer and the food – this
trend of seeking out food that is locally
produced is known now as ‘locavorism’.
This is not sustainable on a global level,
but many brands are addressing this by
putting the producer or the farmer – or
their story – on the front of packs. Wexford
Creameries have done this very well, and
on a retailer level, Tesco and Aldi have also
tapped into it. The more people are able
to engage with the ethos of a product, the
more they will have trust in the product
itself. Storytelling can be vital, but its level
of importance is determined by type of
product you are selling, the type of brand
you are inherently. For FMCG brands
from Unilever it is possibly more difficult,
but for Irish brands stories are very often
the foundation stone, especially for smaller
artisan products. At a cultural level we are
a story-telling nation and, with brands,
stories are a fantastic way to help people
retain information and can help companies
get the character of their brand across to
the consumer in a more informal way.”
This storytelling is evident in the work
The Brand Union has done with Glenilen,
Johnston, Mooney and O’Brien and Cully
& Sully – with each of these placing the
people, heritage or provenance of the
product to the fore.
Concluding, Oisín explains: “Once you
define what your brand is and what it
stands for, our job is to shorten the distance
between the brand experience and the
product experience, because they are in fact
the same thing.”
The Brand union is guided by three
beliefs:
1.
2.
3.
Brands work best when they are
responsive and agile, but keep
strong guiding principles at the
heart of everything they do.
Brands matter – they
differentiate, they add value, they
provoke interest, and they have
enormous social and economic
influence.
Brand building is not an art or a
science, it is a fusion of both.
Issue 6 2012
16/11/2012 14:43:54
Glanbia
GLANBIA PLC
GLANBIA HOUSE, KILKENNY, IRELAND
TEL: +353 56 7772200 FAX: +353 56 7772222
www.glanbia.ie
IF Issue 6.indd 37
Glanbia 210x280.indd 1
16/11/2012 14:43:54
25/06/2012 16:22:22
recipes
pork Chops with Chickpea salad
Serves 4
haddock with pasta and Broccoli
Ingredients
Serves 4
4 boneless pork chops
1 tablesp. olive oil
2 teasp. fresh rosemary, finely chopped
4 cloves garlic, crushed
Juice and zest of ½ lemon
Salt and freshly-ground black pepper
Salad:
1 red onion, finely sliced
1 red pepper, finely sliced
1 x 225g tin Chickpeas, rinsed and drained
Mixed salad leaves
Dressing:
1 tablesp. sherry vinegar
To Cook
Method
Combine the olive oil, rosemary, garlic and the lemon zest and juice.
Place the chops in a dish and pour the mixture over them. Leave to
marinate for 15 minutes if you have time.
Heat a frying pan, season the chops with a little salt and pepper and
add to the pan. Cook for 3-4 minutes on each side, depending on
how thick they are, until cooked through.
While the chops are cooking make the salad. Place the onion, red
pepper, chickpeas and salad leaves in a bowl. Combine the dressing
ingredients then mix it through the leaves. Serve with the chops and
some crusty bread.
38
IF Issue 6.indd 38
Issue 6 2012
Ingredients
700g haddock, skinned and boned
375g pasta – linguini or spaghetti are ideal
250g broccoli, broken up into small florets
A little salt and black pepper
125g cream
125g stock
2 cloves garlic, finely chopped
2 chillies, deseeded and finely chopped
Juice and grated rind of 1 lemon
1 handful parsley, chopped
2 handfuls watercress or spinach leaves, roughly torn
To Cook
Method
Cook the pasta in a large saucepan of boiling water as per packet
instructions. For the last minute add the broccoli. Drain and return
to the saucepan, along with a couple of tablespoons of the cooking
liquid. Keep warm while you cook the fish and make the sauce.
Heat the grill. Lightly oil a baking tray and place the fish on it.
Season with salt and pepper. Cook under the hot grill for 5-6 minutes
until the fish flakes easily.
Put the cream and stock in a saucepan along with the garlic, chillies,
lemon juice and rind and season with salt and pepper. Bring to the
boil, reduce the heat and let it simmer for 4-5 minutes. Then stir this
mixture and the watercress and parsley through the pasta. Finally
flake the fish and gently stir it in.
Source: Bord Bia
16/11/2012 14:43:59
recipes
Beef curry with butternut squash
Serves 6
Ingredients
1kg rib or shoulder beef, cut in
cubes
1 large onion, peeled and
chopped
4 cloves garlic, peeled and
chopped
2 red chillies, deseeded and
chopped
4cm piece of fresh ginger,
peeled and finely grated
Seeds from 6 cardamom pods
2 x 5 cm cinnamon sticks
1½ tablesp. ground cumin
1½ tablesp. ground coriander
1 butternut squash, peeled
and cut in 1inch cubes (approx.
450g)
1 x 400ml tin of chopped
tomatoes
200mls stock or water
A little salt and freshly ground
black pepper
To serve:
100mls Greek-style natural yoghurt
Zest and juice of 1 lemon
Chopped fresh coriander
To Cook
Method
Preheat the oven to Gas Mark 4, 180°C (350°F).
Heat a tablespoon of oil in a flame-proof casserole dish and brown
the meat in batches. Add a little more oil as necessary. As the meat
browns remove it to a bowl.
When all the meat has been browned add a little more oil to
casserole. Add the onion and cook for a couple of minutes. Stir in
the garlic, chillies, ginger, cardamom seeds, cinnamon, cumin and
coriander and continue to cook until the onions just begin to brown.
Add in the squash and stir to coat with the spices.
Return the meat and its accumulated juices to the casserole. Add the
tomatoes, stock or water and a little salt and pepper. Stir to mix and
bring to a simmer. Cover and place in the oven for 1½ hours or until
the meat is tender.
Just before serving stir the lemon juice into the casserole and taste
for seasoning. Sprinkle all but a handful of the chopped coriander
on top of the casserole. Put the yoghurt into a small serving bowl
and mix in the lemon zest and remaining coriander. Serve with the
casserole along with rice or mashed potatoes.
Source: Bord Bia
IF Issue 6.indd 39
roast Chicken with Thyme
Serves 6
Ingredients
1½kg chicken
Small bunch fresh thyme
1 lemon
2-3 garlic cloves, crushed
A little salt and freshly-ground black pepper
To Cook
Method
Preheat the oven to Gas Mark 6, 200°C (400°F).
Place the chicken in a roasting tin and put the lemon and a sprig
of thyme inside the cavity of the chicken. Strip the leaves from the
remaining thyme stalks and place in a bowl along with the garlic,
olive oil and seasoning. Mix to combine then brush this mixture over
the chicken, working it into all the nooks and crannies.
Cover the chicken loosely with foil and roast in the oven for 30
minutes. Then reduce the temperature to Gas Mark 4, 180°C (350°F).
Remove the foil and roast for another 50-60 minutes. It’s fully cooked
when the juices run clear when the bird is pierced in the thigh with
a skewer.
Remove the chicken to a carving board and cover loosely with foil.
Allow to rest for 15 minutes while you make the gravy.
Stir the pan juices over the hob to heat through. Add a little stock or
water and boil up.
serving suggestions
Delicious served with chunky carrots, parsnip, potatoes and half
a head of garlic which can be simply tossed in a little olive oil and
seasoning and roasted for the last 20 minutes with the chicken.
Issue 6 2012
39
16/11/2012 14:44:01
Trends
Supply chain
dynamics
a new reporT From on The ChangIng dynamICs oF supply and demand
hIghlIghTs susTaInaBIlITy and adapTaBIlITy as Key areas oF ImporTanCe
For Those operaTIng wIThIn The Food seCTor. oonagh o’mahony reporTs
The world population is expected to
reach nine billion by 2050. Feeding that
population is becoming an increasingly
popular debate as issues of food security,
land availability and sustainability must be
tackled. For businesses and countries that
are prepared, there are great opportunities
to harness this future demand. There are
many hurdles to this success, but a report
from chartered accounting company,
Grant Thornton suggests that cohesive
food and beverage industries could be key
to achieving sustainability while, at the
same time, doubling food production.
According to ‘Food 4.0: The Changing
Dynamics of Supply and Demand’, the
Irish food and beverage sectors needs
to look beyond sustainability in terms
of just environmentally friendly food
production, and to include issues of
finance and reward. “At Grant Thornton,
we believe the definition of sustainability
goes beyond the ‘greenness’ of food
production, to include the equally
important need to share the financial
reward for effort and risk across all
participants in the sector.”
A cohesive industry, according to Grant
Thornton’s report, is important if
sustainability is to be achieved. The report
says that changes in productivity, smart
innovation, pricing transparency, cooperation and alignment across the Irish
40
IF Issue 6.indd 40
food supply chain will be fundamental to
creating sustainable industries.
Exports from Ireland’s food and beverage
industries, which stand at €8.9 billion,
account for two thirds of the exports by
indigenous businesses. Simon Coveney,
Minister for Agriculture, Food and the
Marine, told a recent Grant Thornton
conference that he was confident in the
future of the Irish food and beverage
industries. He said Ireland has a plan to
deliver extraordinary growth on the back
of Food Harvest 2020 and added that, as
part of Bord Bia’s Origin Green initiative,
both public and private sectors were
working together to create a brand for
Ireland.
The report admits that, while the logic
of an integrated supply chain equation is
simple, the reality is different. It explains
that fragmentation causes challenges
for all links in the chain, reducing both
individual and collective profitability.
On a farm level, the report says, there
is a lack of profitability with rising feed
costs hurting, and in some cases, crippling
profits. Meanwhile, processors and
manufacturers are under pressure. They
need certainty around supply and price,
but are being squeezed at both ends with
reduced volumes and price pressure from
primary producers, and price pressure
from the retailers.
In turn the retailers’ margins are being
challenged. Austerity pressures are
causing reduced levels of consumer
spend, making it difficult for retailers to
push price increases on to the consumer.
Food security and availability of supply
is a major concern. This has seen some
multiples integrate further up the food
chain, taking ownerships of farms.
For consumers, food consumption is
a necessity not a choice. Disposable
incomes are under severe pressure and
consumer’s inability to absorb price
increases is placing heavy demands on
a supply chain that is already under
pressure.
ending of milk quotas
Grant Thornton explains that, in a
fragmented supply chain, pain will be
experienced by all links in the chain.
However, certain links in the chain will
be more affected than others. The report
suggests that through an integrated,
aligned and resilient supply chain,
businesses and organisations can benefit
from greater certainty and rewards. It
highlights the impending opportunity in
the Irish dairy market as milk quotas end
in 2015 and says that, in order to create a
sustainable and profitable business model,
the food and beverage sector needs to
continue to focus on productivity to unlock
Issue 6 2012
16/11/2012 14:44:03
Trends
the potential to improve international
competitiveness, scale and cost efficiency.
“Ireland is particularly well-placed to
capitalise on the change, as its grass-based
method of production allows it to produce
milk cheaper than most competitors.”
Grant Thornton outlined some of the
strategies that have been adopted by
Ireland’s leading dairy producers in
advance of the 2015 abolition:
• Kerry Group plc –announced that it
is to enter into partnership agreement
with Beingmate of China to supply
Irish dairy ingredients for infant
nutrition in China. The investment
positions Kerry Group plc to expand
operations to China for high-value
functional milk ingredients. Through
the acquisition of Newmarket Co-op
(in 2010), and its own existing facilities,
the Group is expected to be able to
handle a 20 per cent increase in milk
volumes.
• Glanbia plc – in respect of its
dairy processing business of Dairy
Ingredients Ireland, Glanbia
announced a 40/60 joint venture
with its co-operative society, with the
co-operative taking majority control.
The creation of the joint venture
facilitates a focus on the expansion of
dairy processing in advance of EU milk
quota abolition in 2015, while also
allowing the Plc to focus on growing its
international business.
• Irish Dairy Board (IDB) – the IDB
is preparing to take advantage of the
ending of the milk quota in 2015
by expanding rapidly into Africa. In
2011, it opened up a new facility in
Algeria to service north of the Sahara
and is currently launching its new
premium brand Kerrygold butter
onto the Russian market. In October
2011 the IDB opened its Adams Food
Ingredients (AFI) plant in Leek,
Staffordshire, UK. The state-of-the-art
facility was built to convert high quality
milk from Ireland into high quality
dairy ingredients.
• Dairygold – Dairygold will spend
€120 million developing a world-class
dairy processing facility in Cork. The
redeveloping of its existing location in
Mallow will see output return to 450
tonnes of milk powder per day, the
same levels as its peak in 1990.
• Lakelands – members project output
increases of 35-55 per cent in the
post-quota era. Lakelands is partnering
on a new infant formula product with
Chinese dairy company Yili and the
Irish Dairy Board. In 2010, Lakelands
closed their Lough Egish site, but
did not decommission it. That site is
expected to be a safety net for increased
output, with an additional €8-€10
million investment in a new drier
projected to handle a further 50 per
cent increase in milk supply.
• Connacht Gold – the recent acquisition
of Donegal Creameries milk and
retail stores, collaborative relations
with other co-ops, including Glanbia
plc, and an openness to discussion
with other processors about further
collaboration, is expected to help
Connacht Gold achieve a 10-15 per
cent increase post-quota.
Investment among the leading dairy
companies, ahead of the abolition of
milk quotas, could prove vital in 2015.
However, while high regulation and
limited availability of capital are here to
stay, Grant Thornton advise that, with a
good understanding of a bank’s business
model and the competitive landscape
in which it operates, food and beverage
companies can develop a value proposition
(business plan) that will ensure the best
opportunity of securing capital.
Smart innovation
Speaking with business leaders, Grant
Thornton found that the majority
believed innovation and adaptability
to meet changing consumer demand
preferences would be key to business
survival and success in the future. One
company that is continuously adapting
to its customer demands is McDonald’s.
Since its foundation in 1940, McDonald’s
has been coming up with fresh products
and services to address the needs of a
diverse consumer market, as shaped by
demographic, economic and local factors
around the world.
Today’s consumer, in a world dealing
with the fallout of an economic
crisis, is increasingly concerned with
‘value’. The perception of ‘value’ has
changed amongst Irish consumers. As
a result of the recession, as well as the
increasing strength of private label
brands, consumers have been content
to move from brand products to ownlabel. However, they still expect quality
even when trading down. McDonald’s
Eurosaver meal deals taps into this aspect
of consumer sentiment.
McDonald’s has also had to face growing
concerns around the issues of health and
wellness. There has been a rapid growth
in demand for nutritional products
ranging from ‘one of your five a day’, to
more functional ingredients that reduce
the risk of a number of health-related
issues including diabetes, heart disease and
obesity. Increasingly changing nutritional
guidelines are leading to a re-engineering
of reduced salt, fat and sugar products in
the marketplace.
Alongside this, consumers’ lives are
hectic and convenience is important to
a new ‘cash poor, time poor’ market.
McDonald’s has tackled this issue in
changing ways since its inception, from
the original premise of ‘fast food’ to drivethrough services, free WiFi, late night
opening, breakfast menus and its McCafe.
Technology is further impacting on how
consumers shop, with a growing cohort
shopping online. In-store experiences
have also been affected with technological
changes allowing customers scan and
pay for their own products without
any interaction with shop employees.
Smartphones allow customers order
food online and home deliveries mean
customers never have to leave their homes
to get the products they need. While this
is changing the face of the market it is also
creating opportunities for businesses that
are willing to adapt with their market.
Grant Thornton added that the consensus
among business leaders is that the notion
of long-term competitive advantage has
reduced and that adaptability will be the
difference between success and failure. It
predicts future innovation will see more
and more collaborative relations between
state agencies, universities and industry.
This, it said would help to develop scale,
share risks and fund transformative
innovative projects. Food for Health
Ireland is an example of this, with state
agencies, industry and universities
collaborating to transform Irish milk from
a basic commodity to a functional food
ahead of the 2015 deadline.
As well as this, Bord Bia’s Origin Green
initiative is uniting Irish businesses under
one umbrella. Origin Green highlights
Ireland’s credentials as a ‘green’ foodproducing nation, as well as stating an
ongoing commitment to sustainable foodproduction practices.
Issue 6 2012
IF Issue 6.indd 41
41
16/11/2012 15:47:14
spotlight
spotlight on…
Dee’s Eat Well, Be Happy
dee’s eaT well, Be happy oFFers an InnovaTIve healThy range oF ‘real meals’, QuInoa
poTs and wholeFood Burgers and aFTer seCurIng a lIsTIng wITh saInsBury’s In
norThern Ireland, The Company Is poIsed For FurTher eXporT growTh InTo The uK.
dee’S eAt well, Be hAppy first came to
prominence in 2009 when UCC graduate
and food business entrepreneur Deirdre
Collins appeared on the very first season of
RTÉ’s Dragons’ Den and struck a business
deal with well-known investor and mentor
Niall O’Farrell. Since then, the company
has continued to expand and production
capacity has recently been increased in
order to facilitate growing demand from
the UK market. Demonstrating this
demand, the company has just secured a
listing with Sainsbury’s and is now on the
shelves of the retailer’s 13 Northern Irish
outlets.
“Hitting the shelves in Sainsbury’s in
Northern Ireland is a significant step
forward for the company. My hope is
that this is a move closer to launching
in hundreds more Sainsbury’s stores in
England, Scotland and Wales. Sainsbury’s
operates over a thousand stores so there’s
enormous potential,” says Deirdre Collins,
MD Dee’s Eat Well, Be Happy.
The Cork food brand combines healthy
eating with convenience, with a range
of ‘Real Meals’, new Quinoa Pots and
42
IF Issue 6.indd 42
wholefood burgers, which are already
available in select Tesco, Dunnes Stores,
SuperValu, Superquinn and Centra outlets
throughout Ireland. Just like Dee’s awardwinning ‘Real Meals’ and wholefood
burgers, the quinoa range is 100 per cent
gluten-free, additive-free and meat-free.
Deirdre believes the launch of the meatfree range in Sainsbury’s in Northern
Ireland will open up real opportunity to
build exports. “Since launching the business
in 2009, I’ve always been adamant that I
want to build a strong international brand.
Exports have definitely been an important
focus. Participation at trade functions,
along with a presence at music festivals
and other cultural events, allowed us to
strengthen brand recognition throughout
continental Europe. What’s more, the Irish
version of Dragons’ Den has also now been
screened on UK-based television channels;
this had led to us being inundated with
sales queries from Northern Ireland and
further afield.
“Overall, we’re receiving excellent feedback
across Europe, however, it seems to be
the UK market where Dee’s Eat Well, Be
Happy is really excelling. There’s a huge
retail market there and the demand for
healthy-eating and ‘free-from’ ranges is
constantly growing.”
The launch of Dee’s Eat Well, Be Happy
in Sainsbury’s was negotiated via PRM
Group – one of Ireland’s largest retail
distributors. From its logistics hub in
Lisburn, near Belfast, PRM Group serves
trade customers ranging from independent
food halls and delicatessens to all the major
Irish supermarket multiples. According
to Deirdre, the enthusiasm of PRM
management and staff, along with the
substantial interest shown by buyers at
Sainsbury’s, are positive indications that
Dee’s Eat Well, Be Happy is on course for
an outstanding 2013. “As we get a little
bit closer to the end of 2012, I’ve been
working with our sales and marketing team
to finalise our 2013 business development
strategy. While we plan ahead to next year,
it’s fantastic to have the knowledge that
we’re expanding our presence in Northern
Ireland and that our product range is
getting such a brilliant response from top
retailers and distributors.”
Issue 6 2012
16/11/2012 14:44:09
Teagas
Leading the Development of Ireland’s
Farming and Food Industry
Teagasc, the Agriculture and Food Development Authority, supports science based
innovation in the agri-food sector and the wider bioeconomy to underpin profitability,
competitiveness and sustainability.
Through Research (food and agriculture) and Knowledge Transfer (education and
advisory) Teagasc delivers six programmes:
Animal and Grassland
Programme
Q Animal and Bioscience
Q Grassland Science
Q Livestock Systems
Q Dairy
Q Beef
Q Sheep
Q Pigs
Crops, Environment and
Land Use Programme
Q Crop Science
Q Environment
Q Horticulture
Q Forestry
Rural Economy and
Development Programme
Q Agri-Food Economics
Q Rural Sustainability
Q Farm Surveys
Q Farm Management
Q Rural Development
Food Programme
Q Food Bioscience
Q Food Safety
Q Food Technology
and Quality
Q Technology Transfer
to Food Companies
Education Programme
Q Further Education
and Training Courses
Q Higher Education
Courses
Q Agriculture
Q Horticulture
Q Equine
Advisory Programme
Q Business and
Technology
Q Environment and
Technology
Q Rural Development
Q Growth and Efficiency
Q Competitiveness
Teagasc Goals:
Q
Improve the competitiveness of agriculture, food and the wider bioeconomy
Q
Support sustainable farming and the environment
Q
Encourage diversification of the rural economy and enhance the quality of
life in rural areas
Q
Enhance organisational capability and deliver value for money
www.teagasc.ie
IF Issue3005
6.indd
43
Corporate
2011_ A4.indd 1
Teagasc 210x280 .indd 1
16/11/2012
14:44:10
09/11/2011
12:09
30/01/2012 09:37:34
Ireland, on its way to becoming
a world leader in sustainability
Ireland is a country supremely well suited
to sustainability. Our climate is temperate;
our lush, green countryside is perfect for farming;
our seas are teeming with fish.
Generations of Irish producers have
benefited from these natural resources,
and carefully passed them on.
Now Ireland has a Sustainability Charter to help
Irish food and drink suppliers plan their
individual journeys towards sustainability.
When you buy food and drink from
these Irish suppliers, you’ll know it’s produced
hand in hand with nature,
you’ll know it’s Origin Green.
To find out more visit
www.origingreen.ie
BOR_12_9903832
IF Issue 6.indd 44OriginGreen 210x280.indd 1
Origin Green 210x280 page.indd 1
01/10/201214:44:17
10:47
16/11/2012
01/10/2012 14:26:43

Issue 6 - Irish Food

Transcription

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