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Issue 4 2014

INTERVIEW WITH SIOBHAN TALBOT, MD GLANBIA AUTHENTICITY DRIVES DEMAND AT DAWN

IRISH WHISKEY TRENDS

INTERNATIONAL FOCUS:DESTINATION USAORIGIN GREEN AMBASSADORSCHEFS’ IRISH BEEF CLUB

Irish_Food_INT_MRKT_Issue4_2014.indd 1 10/07/2014 09:22

Issue 4 2014

EDITORIALwww.irishfoodmagazine.com

For a small country, Ireland’s reach is far and wide. Ireland’s diaspora is estimated at 100 million people across the world, who have brought with them the stories and traditions of Ireland. Now, Ireland’s food industry is travelling the globe and spreading the word about Irish food and drink production and the sustainability of Ireland’s agriculutral industry.

Bord Bia, the Irish Food Board, is playing a vital role in supporting Irish food and drinks companies to communicate that message internationally. In this issue, we speak with serveral Bord Bia market managers for an overview of developments in key Irish export markets.

In 2013, Ireland approached €10 billion in food and drink exports for the fi rst time, a 9 per cent increase on the previous year. The sector is now not far off its target of €12 billion in exports of food and drinks by 2020.

The Irish dairy and Irish beef sectors are heralded as the big growth opportunities. The Irish dairy industry has the end of quotas to look forward to in 2015. With a growing world population and emerging middle-income markets developing internationally, Irish dairy and dairy ingredients are looking internationally for markets for their excess milk outputs. China, Africa and the Middle East represent some of these new opportunities.

Irish beef, meanwhile, continues to increase its international foothold and there is confi dence in the market that exports to the US will commence this autumn. Simon Coveney, Minister for Agriculture, Food and the Marine, recently completed a four-day trade mission to the US where he met with leading industry and political decision makers to advance access to the market. It’s a very exciting opportunity for Ireland and represents a real vote of confi dence in the quality of Ireland’s grass-reared beef industry.

As always in , we have recent news from the food and drinks industry, as well the latest trends.

Enjoy!

Oonagh O’MahonyEditor

Issue 4 2014 3


CONTENTS

Issue 4 2014


4

Editor: Oonagh O’Mahony

Reporters: Alan Conway, Kennas Fitzsimons

Design: Barry Sheehan, Martin Whelan, Ciarán Brougham

Production: Niall O’Brien, Michael Ryan

Chief Executive: Rebecca Markey

Advertising Executive: John Sheehan

Accounts: Tricia Murtagh

Administration: Sue Nolan

Publisher: David Markey

Copyright IFP Media 2014.

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, Co. Dublin

Republic of Ireland.

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www.ifpmedia.com www.irishfoodmagazine.com

7 NEWS

Mondelez invests $5m in Rathmore plant

Record Irish presence at world’s largest seafood fair

Chinese politician, Liu Yunshan, visits Irish beef farm

Coveney welcomes approval for Irish dairy companies to export to China

10 INTERVIEW

Siobhan Talbot, Managing Director, Glanbia, speaks with about Glanbia’s global success and the future for the dairy ingredients company.

12 INDUSTRY

Bord Bia/Tesco supplier development programme welcomes new recruits.

14 INDUSTRY

Attendees at the National Dairy Council’s Annual Conference heard how Ireland’s natural advantage and existing standards in the dairy industry are creating opportunities in international markets.


CONTENTSwww.irishfoodmagazine.com

27 IN GOOD COMPANY

Exciting times lie ahead for the Irish pioneers of the gourmet jelly bean as they join forces with a major European confectionery company.

28 GLOBAL GROWTH

Flahavan’s, an Irish household brand, is expanding its global presence.

37 INTO AFRICA

Into Africa: Irish food and drink exports have the potential to meet the demands of Africa’s rising population.

15 INTERNATIONAL MARKETS

41 INDUSTRY

Dawn Farm Foods, tells that , consumers are looking for real, authentic food experiences.

42 INDUSTRY

Ireland’s meat industry can add value through research and science, according to industry experts.

40 TRENDS

Alan Conway outlines the key messages from a recent Bord Bia report: The Future of Irish Whiskey.

46 SPOTLIGHT ON...

Marketplace International 2015 sets target of €30 million in new business.

Issue 4 2014 5

Into Africa: Irish food and drink exports have the


Issue 4 2014

www.irishfoodmagazine.comNEWS

6

MONDELEZ INVESTS $5M IN RATHMORE PLANT Mondelez International has announced plans to invest US$5 million in its Cadbury chocolate crumb manufacturing plant in Rathmore, Co. Kerry.The project will see the installation of a new milk evaporator and new buildings to replace existing technology. This investment represents an important opportunity to improve competitiveness through a signi�cant reduction in the use of fuel oil, and the potential opportunity for growth in milk capacity.“This enhanced technology forms part of an overall Mondelez manufacturing strategy to drive e�ciency in manufacturing processes and ways of working. The investment represents an important stepping stone for Rathmore’s competitiveness journey,” said Ian O’Toole Head of Manufacturing for Mondelez.At the time of going to press the company is awaiting �nal approval on its proposal and has said it expects works to be completed by August 2015. Established in 1948, the factory is located on the banks of the River Blackwater in Rathmore, Co. Kerry, from where Cadbury source approximately 80 million litres of fresh Irish milk annually for use in its chocolate crumb. This crumb is used in the Cadbury chocolate factory in Coolock, Dublin and is also exported to the US, Canada and the UK. Commenting on the investment, Ian added: “Rathmore has a proud manufacturing heritage and we are committed to ensuring it continues. This proposed investment demonstrates con�dence in our manufacturing capability.”

As discussions continue between Chinese and Irish authorities regarding market access for Irish beef, a senior Chinese politician, Liu Yunshan, visited the farm of Tom and Geraldine Short in Co. Wicklow. He was joined by the Minister of State at the Department of Agriculture Food and the Marine, Tom Hayes who said: “I was delighted that Mr Liu had the opportunity to see at �rst hand the top-quality food produced in Ireland, particularly given that China is such an important export destination for Irish food. It was wonderful to be able to showcase the grass-fed production systems that di�erentiate Irish beef and lamb, and Short’s farm represents the best of what Irish agricultural production has to o�er. The Ireland-China agri-food partnership continues to grow every year and visits such as these are important milestones in enhancing the relationship.”The Short’s farm is a member of the Bord Bia Beef and Lamb Quality Assurance Scheme and is also participating in the Origin Green sustainability programme, which monitors the carbon footprint of beef production. The Minister took the opportunity to underscore the importance of sustainability as a key theme of food production in Ireland. In 2013, Ireland exported €290 million worth of food and agricultural products to China. The Minister said it was unfortunate that Irish beef and lamb were not part of this export story. “Just like other EU countries, we currently do not have access for these products. This is a matter on which much work is ongoing and I am pleased that the Taoiseach and Tánaiste are also raising it with Mr Liu as a priority issue for Ireland during this visit. Last December, a high-level delegation from my Department visited Beijing for talks with the Chinese authorities on securing beef access, building on Minister Coveney’s previous visit there and we are hopeful of progress on this in the near future.”The Minister also announced that Chinese authorities have given the green light to initiate discussions on securing access for Irish sheepmeat. “Irish exporters of dairy and pork products have already built valuable markets in China, which continue to grow every year.” He added: “I am hopeful that this visit will be another step in broadening this partnership with China and securing further access for high-quality Irish food in the coming years.”

CHINESE POLITICIAN, LIU YUNSHAN, VISITS IRISH BEEF FARM

Mr Liu views Ireland¹s beef production �rst hand with the Minister of State at the Department of Agriculture Food and the Marine, Tom Hayes.

Mr Liu visits with the Short family during his visit to their beef and sheep farm.


Issue 4 2014

NEWS

7

RECORD IRISH PRESENCE AT WORLD’S LARGEST SEAFOOD FAIRA record number of Irish seafood companies participated at Seafood Expo Global, the world’s largest seafood trade fair, which took place in Brussels during the � rst week of May. Bord Bia coordinated the presence of some 21 companies who showcased their produce to over 25,000 buyers and sellers from over 145 countries. The Irish exhibitors represented the full spectrum of species available from Ireland including shell� sh, white� sh, pelagic and � n� sh in a range of formats including live, chilled, canned, frozen and smoked. Speaking at the event Aidan Cotter, Chief Executive, Bord Bia commented: “It is encouraging to see such a strong Irish presence at the Seafood Expo Global, as international trade events remain a critical business development platform for Irish exporters. “The Expo provides an opportunity for Irish companies to identify new customers, meet existing clients, launch new products, learn more about emerging trends and broaden their export reach into new markets. Ireland’s seafood exports to international markets were valued at €156 million last year, an increase of 5 per cent on the 2012 � gures.”

Markets outside of the EU are also of vital importance, most notably for Ireland’s pelagic � eet, which � shes mainly mackerel, herring, blue whiting and boar� sh. According to Bord Bia, Nigeria, Cameroon, Russia and China are among the main markets for these species. Last year, exports to Asian markets reached €38 million representing a value increase of 41 per cent on the previous year. In 2013, Irish seafood exports to over 80 markets worldwide were valued at €493 million, an increase of over 30 per cent since 2010. An estimated 65 per cent of Irish seafood exports are sold in EU markets, with France being the main market followed by the UK and Spain.

COVENEY WELCOMES APPROVAL FOR IRISH DAIRY COMPANIES TO EXPORT TO CHINAThe Minister for Agriculture, Food and the Marine Simon Coveney has welcomed the results of an audit of Ireland’s dairy sector by the Chinese authorities. The audit found that Irish plants are fully compliant with the standards of China’s new food safety laws, which came into force in May 2014. Chinese authorities conducted an inspection audit of the dairy production chain, with a focus on infant formula exporting plants, in several countries over recent months.Commenting on the news, the Minster said: “It is an excellent result that Ireland has achieved 100 per cent compliance with the Chinese requirements, and every company that applied for access has been accepted. This is further evidence of the value placed on both our dairy exports and our regulatory standards by key markets around the world. This outcome also demonstrates why three of the top four infant formula companies in the world have chosen to locate in Ireland and why we remain the best country for inward investment in the food sector.”The positive outcome means that over 30 Irish dairy companies are now in compliance with the new Chinese regulations. The Minister said the endorsement from the audits would further enhance the position of Irish dairy exports to China, which were valued some €170 million in 2013.



Issue 4 2014

www.irishfoodmagazine.comNEWS

8

CHINA MEAT ASSOCIATION AWARDS BORD BIA REPRESENTATIVESPictured at the World Meat Congress banquet in Beijing recently, James O’Donnell, Manager, Bord Bia Shanghai (left) and Paddy Moore, former Director of Bord Bia (right), were presented Goodwill Ambassador awards by the President of the China Meat Association Mr Li Shuilong.


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INTERVIEW

Going global SIOBHAN TALBOT, MANAGING DIRECTOR, GLANBIA, SPEAKS WITH ABOUT GLANBIA’S GLOBAL SUCCESS AND THE FUTURE FOR THE DAIRY INGREDIENTS COMPANY


Issue 4 201410

Q: What is the short-term outlook for Glanbia and what targets has the Group set for the next � ve years?The outlook for Glanbia plc for 2014 remains positive. The group delivered a good performance in the fi rst three months of 2014. Global Performance Nutrition performed particularly well, refl ecting very strong revenue growth in both the US and internationally, supported by the ongoing investment in the business. The results across the rest of the Group were as expected. Glanbia has defi ned its growth ambitions for the next fi ve years on two levels. We believe we can achieve annual organic growth of at least 8 per cent to 10 per cent in adjusted earnings per share, on a constant currency basis, while aiming to sustain a return on capital employed in excess of 12 per cent. However, our ambition stretches beyond this and we will be actively pursuing opportunities to add further scale to Glanbia through acquisitions and strategic joint ventures and alliance as we seek to deliver higher levels of growth. Glanbia has two, well established and thriving platforms in Global Ingredients and Global Performance Nutrition business segments, which account for over 75 per cent of our earnings. A fundamental pillar of our strategy is the continued development of these two global platforms, both of which have specifi c capabilities to address key global consumer trends in food and nutrition.

Q: How important is scale going forward for the business?We have built scale through a combination of acquisition and organic growth and also through the joint venture model. We see a strong opportunity to continue to grow our Performance Nutrition (GPN) and Global Ingredients segments. GPN is currently the largest global sports nutrition consumer brand family. GPN has the top sports nutrition brands in the US, is in the top three in around 20 countries worldwide and is the market leader in Scandinavia through the acquisition of Nutramino in 2014. Scale is very pertinent to Global Ingredients where we have scale positions in US Cheese and also are the leading global supplier of whey-based nutritional solutions.

Q: Glanbia spent €112 million in its organic investment programme in 2013, what will organic investment in 2014 look like?One of the areas we are looking at organic growth is in relation to Global Ingredients. We want to ensure that we get the maximum value from our existing ingredients and raw materials through capital investment, product development and innovation. In our non-dairy operations we believe we can drive volume and value growth in areas such as specialty grains, premix solutions and the development or innovative food and nutrition systems. A

recent example of the non-dairy system is the award-winning Optisol 3000, which is an egg replacement for the bakery sector that combines whey protein and fl ax.

Q: What steps has Glanbia taken to prepare for the increase in milk post-2015? The removal of milk quotas in 2015 will present signifi cant growth opportunities for Glanbia Ingredients Ireland Limited (GIIL) milk suppliers, who have expressed a desire to grow milk output by more than 50 per cent by 2020. GIIL has responded to this ambition with the construction of the new processing plant at Belview. The facility is on track for completion in April 2015. It is situated on a 52-acre site and will contain two 7.5 tonne dryers, which will have a processing capacity of 19 million litres of milk per week – to facilitate up to a 60 per cent increase in milk production by 2020. We are also ensuring that GIIL is positioned to provide a high level of support to milk suppliers as they plan to take advantage of the post-2015 growth opportunity.

Q: How signi� cant is the recent investment in a UHT facility in Monaghan and what is the potential of such products globally?


INTERVIEWwww.irishfoodmagazine.com

Issue 4 2014 11

The new Ultra Heat Treated (UHT) plant, which was commissioned in May, represents a positive development to extend our brands – Avonmore and Premier – outside Ireland and will enhance the long-term growth potential of the business. Chinese demand for imported UHT milk is increasing and

we are already exporting UHT milk to France under our Premier brand.

Q: Africa and China have been earmarked as key emerging markets for world dairy products, can you outline Glanbia’s development in these markets? The Group has a long history of selling into China – currently selling directly to customers from a trading base in Shanghai and we are continuing to grow our presence in the region. Since 2008, we have operated a premix

manufacturing facility in Suzhou where we manufacture a range of

vitamins, minerals, and a large number of other nutraceuticals for infant formula, as well as food

and supplements for customers in China. We signed a non-exclusive memorandum of understanding with the Chinese company Bright Foods last year. This memorandum is a pre-commercial agreement and it set out the basis for Glanbia and Bright Foods to explore the scope for any joint market opportunities

and distribution channels across Glanbia’s global

portfolio of products. The memorandum relates to the

breadth of Glanbia’s global product portfolio of ingredient

and consumer products.We also have a long history of trade

with Africa and have a joint venture in Nigeria with PZ Cussons,

Nutricima, where we produce and distribute a range

of powdered, evaporated and

ready-to-drink milk for the consumer market.

Q: There has been strong investment in your cheese facilities in the US, how has this market grown and what trends are driving this investment?Glanbia operates a total of three cheese plants, all in Idaho, and we also commercialise all cheese on behalf of our Southwest Cheese joint venture in New Mexico. Including the joint venture, we sell a total of 400,000 tonnes of cheese per annum and are the leader in the American-style cheese market. Our business model is based on large-scale, low-cost manufacturing and our continued focus on operational excellence ensures we are amongst the most effi cient operators in the sector.US Cheese commissioned its €8 million cheese innovation centre during 2013. We aim to sustain and develop our leadership position in US Cheese, more than likely through a strategic joint venture or alliance, a model that has been successful for Glanbia.

Q: You came to the helm of Glanbia in 2013, having worked with Glanbia for over 20 years, most recently as Group Finance Director, where you worked closely with your predecessor John Moloney. How important is the team around you and what do you look for in the people working closest to you?While my overriding personal priority as Group Managing Director is to ensure the delivery of our strategic objectives and growth plans, I would also like one of the hallmarks of my new role to be renewed energy and focus on our employee engagement and development. I have just completed a Group-wide tour where I met most of our employees and communicated our refreshed strategy. I believe Glanbia’s success is built on the talent of our people who are innovative and pioneering, whether it is about improving performance, collaborating with customers or building new markets.


INDUSTRY

Issue 4 201412

This year, 17 Irish food and drinks companies will participate in the third annual Bord Bia/Tesco Supplier Development

Programme. The unique programme is designed to provide participants with tailored support and guidance that will assist them in securing listings with Tesco stores in Ireland and abroad.

The programme is divided into three groups – local, national, and international – with participants engaging with Tesco stores in each of their target markets. Aidan Cotter, Chief Executive, Bord Bia described the supplier programme as “a comprehensive and practical programme, including workshops and mentoring, as well as access to Tesco’s consumer insights, all designed to help Irish food and drink businesses grow to the next level, whether locally, nationally

or internationally”. Furthermore, the programme provides participants with an understanding of Tesco’s process and procedures. Clear objectives and targets are set for each company to help them achieve key opportunities identified for their business with Tesco.

From little acorns big trees growFive companies – Chia Bia, Connacht Gold, Green Saffron, Yeats Country Foods and Rye River Brewing – are participating in this year’s export strand. For Green Saffron and Chia Bia, this is not their first supplier programme, having previously participated in the local and national strands. This year, they are progressing to the next level as they explore export opportunities. John Paul O’Reilly, Commercial Director, Tesco Ireland, explains that working with a global network, such as Tesco, provides these companies with extensive export potential worldwide.

“Our history over the last 17 years has always been about growing Irish companies and working with them in long-term relationships. This is the first stage, working with very small companies and finding a way through our systems. Over a number of years, they can grow from nine shelves to 90 shelves and then get into thousands of stores through the group.” John Paul explains that Tesco has global standards and, once those standards are met, it is just a matter of assessing the customer needs in each market. “We bring it to our group food buying team and they bring it to their countries, almost to sell them for Ireland, which is the benefit of being involved with a big group.”

Getting o� the shelfFamily-run business, Green Saffron began selling its whole spices at farmers markets in 2007. While exhibiting at

Supplier powerIN ITS FIRST TWO YEARS, BORD BIA/TESCO SUPPLIER DEVELOPMENT PROGRAMME HAS GENERATED €16 MILLION WORTH OF IRISH FOOD AND DRINKS SALES. THIS YEAR IT WELCOMES NEW RECRUITS.

Pictured at the third annual Bord Bia/Tesco Supplier Development programme launch, are : Aidan Cotter, Chief Executive, Bord Bia; John Paul O’Reilly, Commercial Director, Tesco Ireland; and, Arun Kapil, founder and Managing Director of Green Sa�ron .


Issue 4 2014 13

Bord Bia’s annual Bloom show in 2011, Arun Kapil, founder and Managing Director of Green Saffron was approached by Tesco to participate in the inaugural supplier programme at a local level.

At the time, Green Saffron was supplying a number of independent retailers with its packet spice mixes and ready-to-use sauces, as well as the food service industry. However, this presented the company’s first opportunity to get listed with a multiple such as Tesco. Arun says the opportunity fast-tracked the success of the company. “I learned things that I wouldn’t have otherwise known. Perhaps, given another three years, I might have been stocked in Tesco, but that would have been three years.” Now, Green Saffron is listed in 100 Tesco shops nationwide. Today, Green Saffron is divided into three divisions: ingredients, food service and retail. It supplies spice mixes as ingredients to food manufacturers and food service businesses. However, for Arun, the Green Saffron brand is the primary focus. He believes the ingredients business will help build scale for the company, which will drive down overall costs. He sees the UK market as being key to this goal. The company’s goal is to be on shelves in the UK by Q1 or Q2 2015. However, Arun says, it’s not just about getting on the shelves, its

about getting the product off the shelf and into consumers’ shopping baskets.

Natural progressionAnother company returning to the programme is Chia Bia, which

completed the national programme in 2013. This year, Chia Bia is targeting Tesco’s international stores. The Waterford-based company, which manufactures a range of health-food products including seed mixes, energy bars and biscuits, is already successfully exporting to a number of countries, including the Middle East, Italy, Canada, the US, the UK, Scandinavia and Eastern Europe. However, Ray Owens, co-founder of Chia Bia, says the company wants to expand from its current network of health-food stores to traditional retail outlets. “We were anxious to get into mainstream market because only 2-3 per cent of consumers shop in health food stores.” He adds that there is growing opportunity in the traditional retail chain as consumers are increasingly aware of the health benefits of gluten-free products. He describes participation in the export programme as “natural progression” and, already, the company is reaping rewards as it has already listed with Tesco UK with four products.

Ray says that, through its listing in Ireland, Tesco UK was able to see that there is a huge appetite for chia, which he believes is only the tip of the iceberg. “We are the number one brand in Europe and the first chia company to supply any multiple in the last year anywhere in Europe.”

Building a brandFamily-owned cream cheese and cream goat’s cheese manufacturer, Yeats Country Foods is participating in the programme for the first time. To date, the company has concentrated on building scale for its business. It has done this through its own-label and B2B division, with customers including multiples and international brands, such as Domino’s Pizza. Now the company wants to grow its Yeats Country brand. “It’s really to showcase new products,” explains John Molloy, Commercial Director, Yeats Country Foods. “When we come up with a new product, such as our chocolate nut cheese, we will launch it under our Yeats Country brand and hopefully, ultimately, it will end up in private label.”Commenting on the company’s involvement in the programme, John says: “The biggest motivation is to build a relationship with Tesco and network with suppliers. We already supply a lot of product to Tesco, indirectly, so this is about building a retail presence and building our brand in Ireland and the UK.”

Unique opportunityEach year over €706 million worth of export of Irish food products are exported to Tesco worldwide. Commenting on the programme, Phil J. Clarke, CEO, Tesco said: “Tesco is the largest purchaser of Irish food and drink in the world and one of the main export destinations for Irish food worldwide. Through this programme we are able to further extend our support for the Irish agri-food sector.”

INDUSTRYwww.irishfoodmagazine.com

Pictured at the third annual Bord Bia/Tesco Supplier Development programme launch, are: Simon Coveney, Minister for Agriculture, Food and the Marine; Ray Owens, co-founder of Chia Bia; John

Paul O’Reilly, Commercial Director, Tesco Ireland; and Aidan Cotter, Chief Executive, Bord Bia.


Issue 4 201414

Speaking at the NDC’s Annual Conference recently, Minister of State at the Department of Agriculture, Food and

the Marine, Tom Hayes said 2015 marked a milestone for the dairy industry and Ireland as a whole. He said dairy products would be the hallmark of the Irish agri-industry.

He added that the current economic environment highlight the importance of the dairy industry to the export-led growth in the economy, citing the 1.5 per cent increase in the value of dairy product exports in 2013, which reached €3.05bn. He said this growth in exports was driven by innovative, added-value products that use dairy as core ingredient. He continued by stating that the end of quotas would result in huge growth and market potential for Irish dairy producers but, he cautioned, maintaining standards was essential for the continued success of these products in the market.

ExpectationsThe concept of quality was, once again, addressed in an afternoon panel

discussion at the conference. Asked whether consumers take for granted the quality of Irish dairy products, Séan Molloy, Director of Strategy and Supplier Relations, Glanbia Ingredients Ireland said such quality can’t be taken for granted. “The level of expectation and achievement among our competitors has significantly lifted. There is a standard that is expected as a basic from all of our customers, but if we look internationally at the customers that Ireland should be aspiring to do business with, the level that they require and the adherence to quality standards is much higher than the norm.”Séan continued by saying Irish dairy farmers and producers had grabbed the opportunity to produce high-quality products at an earlier stage. We are now beginning to understand that it is not good enough to just be performing well, we have to be able to measure our performance.”

Sustainability John Moriarty, Service Manager, Kerry Agribusiness said Unilever’s ambition to source all of its agricultural raw materials from sustainable sources by 2020 was just an example of the direction the agri-food industry was

taking and, he added, Irish producers had to take account of this. Commenting on the issue of sustainability, John explained that it meant different things to different markets: in China it is about quality; in the EU its about environment; and in the Middle East it is about longevity of supply. “I think it will be very important going forward that all of the big producers can stand up and say I’m producing milk and my facility is certified and that processors are in the same position. All processors in this country are now part of the Origin Green programme and between primary production and processing going forward we will be in a very good place.”Dr Pat Dillon, Head of Teagasc’s Animal and Grassland Research and Innovation Programme, said Ireland had a number of natural advantages that contribute to the ongoing quality of its dairy outputs, including its grass-based production system, its animal health and Ireland’s environment – water quality, biodiversity, etc. “We have a lot going for us and it’s all about building on that.”

Leading the agenda John Byrne, Commercial Manager, Aurivo Dairy Ingredients, said quality began at farm level. “If you have a quality product entering the value chain you will have a quality product at the end of the value chain. Like that, it is an industry responsibility.” He welcomed the recent introduction of Bord Bia’s Sustainable Dairy Assurance Scheme (SDAS) saying: “It’s about being able to shout about our quality because we have measured it, we have benchmarked it and instead of following what others are doing we can actually lead it.”

THE NATIONAL DAIRY COUNCIL’S (NDC) ANNUAL CONFERENCE HEARD THAT IRELAND’S NATURAL ADVANTAGE AND EXISTING STANDARDS IN THE DAIRY INDUSTRY ARE CREATING OPPORTUNITIES IN INTERNATIONAL MARKETS.

Maintaining standards

Dairy Quality was the subject of a panel discussion at the NDC Annual Conference featuring: Seán Molloy,Glanbia Ingredients Ireland; Joe Moriarty,Kerry Agribusiness; Dr Pat Dillon,Teagasc; and John Byrne, Aurivo Dairy Ingredients. Suzanne Campbell, writer and broadcaster on food and farming chaired the discussion. Picture by Patrick Bolger.

DAIRY AND DAIRY INGREDIENTS www.irishfoodmagazine.com


International Markets


Issue 4 201416


SPEAKS TO THREE ORIGIN GREEN AMBASSADORS ABOUT THEIR ROLES AND EXPERIENCES IN COMMUNICATING THE MESSAGE OF ORIGIN GREEN.

As part of Origin Green, Bord Bia (the Irish Food Board), together with the Irish food and drink industry and UCD Michael Smurfit Graduate Business School, developed a master’s degree in business sustainability, recruiting 10 experienced and talented executives to take part in the two-year programme as Origin Green ambassadors. A central part of this programme involved seven of the 10 ambassadors taking up placements with some of the world’s biggest companies, who have strong sustainability agendas and positive industry relations with Ireland. Michael Murphy, Director of Markets at Bord Bia, says the purpose of the ambassador programme is three-fold. “Firstly, we send them into companies on the basis that they are high-calibre people who can implement sustainable projects. So, they are going in there to work on a real-life sustainability project. The second objective is the engagement that they have with key people within the company to tell them all about Origin Green and the third objective is that they understand how sustainability works in those accounts and they can bring that information and knowledge back to Irish food and drink companies.”Michael explains that is was Bord Bia’s job to place the ambassadors with international companies, which, he says, have gone really well and received positive feedback. Here, hears from three ambassadors about their experiences.

Flying the Origin Green flag

Name: Deirdre RyanLocation: Düsseldorf, GermanyHost Company: MetroDeirdre Ryan is working in the Regulatory A�airs Department of Corporate Responsibility at Metro where her primary focus is on the traceability in the food industry. “The solution Metro has developed connects the supply chain using modern technology, making product and processing information available to customers online or via smartphone by scanning a code on the product. Customers are asking for more information about their product’s journey and the technology enables Metro to communicate the sustainability credentials for their products.”Deirdre explains that the project she is currently working on involves coordination across a number of departments and has allowed her the opportunity to engage with purchasing, marketing, quality assurances, as well as corporate responsibility on the subject of Origin Green. “There is a great appetite for Origin Green – people are extremely impressed that the initiative is industry-wide and are taken aback by the carbon footprinting and practices on farm level. The third-party veri�cation of the programme is also very important.”Deirdre says that sustainability is an integral part of Metro Group’s business. “They aim to actively contribute to the development of sustainable solutions and to create added value for their customers and other stakeholder groups. Sustainability is viewed as an important contribution to risk management crucial to ensure future business.”From her time at Metro, Deirdre says she has learned about the importance of communicating the business case for sustainability projects internally. “Sustainability is good for business, not only in order to manage reputation, but to optimise processes, make cost savings and ensure security of raw materials – the foundations of future business. It helps to embed a culture of sustainability when employees see the commercial rationale, as well as the environmental and social aspects to sustainability.”

Ali Sheridan, PepsiCo UK


Issue 4 2014 17


Name: Ali Sheridan Location: Ireland/UK Host Company: PepsiCo UKAli Sheridan says sustainability runs through every part of PepsiCo. During her time with PepsiCo, Ali has primarily worked with the sustainable agriculture team to re�ne a tool to measure farm emissions for global application among PepsiCo suppliers as part of PepsiCo’s sustainable farming initiative. “Like Origin Green, PepsiCo recognise the importance of measuring farm emissions as an e�ective method of spotting the ‘hotspots’ and identifying areas for improvement.” Ali’s work with PepsiCo has taken her all around the UK and allowed her to communicate the Origin Green message to a wide variety of people within PepsiCo that span across the entire supply chain. “I’ve met with farmers who supply agricultural produce to PepsiCo to compare our carbon measurement approaches and I’ve discussed the similarities between the Origin Green Charter and the PepsiCo Resource Conservation Programme with members of the manufacturing team. I’ve talked about how sustainability a�ects purchasing decisions with the procurement team and compared the communication tools we use for Origin Green with those that PepsiCo use with their communications team.” Ali says that, without exception, feedback to Origin Green has been universally positive. “Praise is always attributed to the national, holistic approach of Origin Green that incorporates the entire supply chain, as well as the joined up thinking that incorporates Government leadership and private sector participation.” She adds: “My job is made easier by being able to give real examples of Irish companies who have embraced sustainability and have set themselves ambitious goals in areas such as raw material sourcing, manufacturing and social sustainability.” Through her work as an ambassador, Ali says she has also recognised that organisations are moving towards collaboration in sustainability, despite their traditional role as competitors. “Collaboration is happening both internally and externally as organisations recognise that sustainability is a holistic, company-wide movement, rather than a targeted programme focused on one department. As the complexity of sustainability issues grows, so do the costs of necessary resources and capacity building. Collaboration allows organisations to share the costs, as well as the bene�ts.”Finally, she says, progress in sustainability is moving fast, and it is an exciting time for innovation and creating opportunities. “While we have already achieved huge success with Origin Green, we need to keep working towards improved sustainability practices to maintain our position as world leaders in sustainability. Given our success to date, I think we are up for the challenge.”

Name: Richard HarpurLocation: LondonHost Company: TescoDuring his time with Tesco UK, Richard Harpur was involved in a project that looked at identifying opportunities to reduce food waste, which is part of Tesco’s three big ambitions to lead in the global �ght against food waste. Richard explains that, for Tesco, contributing to society by drawing on its operational skills and scale is a core cultural value of the company. His work with Tesco has introduced Richard to a number of people from commercial and technical roles to corporate a�airs. “Tesco is a signi�cant customer of Irish food so it was great to see that quite a few people were already well versed on Origin Green before my arrival.”He says the feedback on Origin Green has been positive. “Bord Bia has a very good reputation in Tesco and the programme has real credibility as a result. I think the most impressive element is the level of cohesion that exists in Ireland from Government through to industry and right down to farm level.” He adds that the fact that Bord Bia is currently in the process of auditing 18,000 dairy farms as part of the Sustainable Dairy Assurance Scheme particularly impressed the people he spoke with. “I believe this is something that the industry should be extremely proud of. Coming from a farming background, I understand that audits can be taxing for farmers but the reality in the marketplace today is consumers are becoming more and more interested in sustainability and animal welfare, hence the importance of such schemes.”Richard says sustainability is not just a passing fad and, he believes, the food industry can collaborate now to protect future generations. “Food security is a real issue today and we all have a role to play to help secure our food into the future. Food waste is another issue that we can all help tackle in our daily lives.”

Deirdre Ryan, Metro

Richard Harpur, Tesco

Origin Green Ambassadors, and their host companies: David O’Flynn, Abbott (Ohio, US); Diana Geraghty, The Coca-Cola Company (Atlanta, US); Shane Hamill, Fair Oak Farms (Indiana, US); Ali Sheridan, Pepsico (Birmingham, UK); Ruth Moriarty, Walmart

(Bentonville, US); Yvonne Carey; Philip Cocoman, McDonalds (London, UK); Deirdre Ryan, Metro Group (Ger), EIPC Subway (UK); Richard Harpur, Tesco (Cheshunt, UK), Tesco; and, Padraig Mallon, World Wildlife Fund (Washington).


Issue 4 201418

Chef’s choiceIN 2014, BORD BIA’S CHEFS’ IRISH BEEF CLUB MARKS 10 YEARS OF CELEBRATING IRISH BEEF.

The passion of the world’s top chefs for quality food products is unparalleled. They understand that a great meal is the sum of its

ingredients and that great ingredients are a result of quality sourcing and good farming practices. With that in mind, Bord Bia established the Chefs’ Irish Beef Club (CIBC) as a forum where some of the leading and most influential chefs across Europe can learn about the unique characteristics of Irish beef.

This year marks the 10-year anniversary of the CIBC, Declan Fennell, Bord Bia, says the Club has grown exponentially in the past three years, with membership

doubling in that time. It now boasts a membership of over 70 chefs, spread across seven chapters, including: Belgium, France, Germany, Italy, Netherlands, Switzerland and the UK. These chefs are working in the higher echelons of gastronomy and have been recognised and rewarded for their talent and skill by Michelin Star and Gault Millau.

Gold standardDeclan says: “Working with these top chefs is a gold standard measure of the high regard in which Irish beef is held in and a real benchmark of quality that assists the industry in building confidence with key customer accounts”.

He adds that having members of the Club from the highest ranks of the culinary world means the subject of Irish beef is never far off the agenda. “The chefs are regularly featuring Irish beef on their menu, or they might be at trade events working with Irish beef. Independently, when they are talking with the media, they are very proud to say they are working with Irish beef and the CIBC. All those activities have a constant ripple effect in building product reputation.”

Exchanging knowledge “While Bord Bia are the main drivers behind the CIBC, the club very much belongs to its members. The focus is on

As part of the International Gathering of the Chefs Irish Beef Club in 2013, member chefs spent a morning on Jim Hogan’s Farm in Co. Carlow.


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Issue 4 2014


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them,” says Declan, who explains that Bord Bia organises events and facilitates the needs of each of the Chapters. “CIBC has created an international network of chefs, which regularly meet within their markets to exchange and learn new ideas about Irish beef. These peer-to-peer meetings are well attended and always command a strong interest from trade and consumer media.” Every other year, member chefs, together with invited media, travel into Ireland to learn more about Irish beef production. Declan explains that this is a great opportunity for the members to witness, and understand the importance of Ireland’s mild temperate climate; abundance of grassland; sustainability endeavours; natural production; and family farming traditions. In 2014, members of the German and Italian chapters will visit Ireland with the CIBC. Declan says there are also plans to welcome chefs from outside the Club to Ireland as part of its efforts to expand and increase the number of Chapters. In June 2013, Bord Bia hosted an international assembly of members of the CIBC in Ireland. Over 60 member chefs, and media, from 13 international markets participated in a three-day itinerary, which included farm and factory visits. President of Ireland Michael D. Higgins hosted a reception in Áras an Uachtarain to formally recognise the contribution of the Club to building the reputation of Irish beef within key export markets.

A major coupIrish beef received a massive endorsement when it was selected as a key ingredient for the Bocuse d’Or 2013 final. Florent Suplisson, Director of Bocuse d’Or explained that the choice of Irish beef for the 2013 edition of the Bocuse d’Or is in line with the tradition and overall objective of the competition. “Our International Organisational Committee takes great care in choosing the products for our candidates and we only select the world’s best product offerings.”

IRISHFOOD SPEAKS TO TWO MEMBERS OF THE CHEFS IRISH BEEF CLUBMario Corti, Executive Chef at the �ve-star Schloss Elmau resort in Germany.Mario says he is always searching for new products and was introduced to Irish beef by a one of his main suppliers. “He introduced me to Irish beef, which was of a very high quality for the price o�er at the time.” Mario then began experimenting with di�erent cuts and products, such as dry-aged beef, and introduced it to the menus in the restaurants at Schloss Elmau. There are six di�erent restaurants, each with its own speci�c theme, from Michelin Star �ne dining to bu�et and bistro. Mario says Irish beef is used across the board, with dry aged beef selected for its �ne dining menu. Mario says he chooses Irish beef because it o�ers something unique in terms of taste. This, he adds, is a consequence of Ireland’s environment and traditions in beef rearing. “The real healthy beef is grass-fed. You have a nice texture to bite into. It’s a unique taste.”Mario became a member of the CIBC in 2013 and took part in the international assembly of members in Ireland. “We visited some of the beef farms and dairy farms and had some good meetings with Bord Bia. They really introduced a lot of Irish products to us. Sure, we know about Irish beef, but you have such great products in Ireland, really natural, very sustainable products. I think the CIBC is a great thing to do because it brings food closer to people. When you come back you really have a story you can tell your chefs and customers about why they should buy Irish beef.”Commenting on Origin Green, Bord Bia’s sustainability programme, Mario says the issue of sustainable production is becoming increasingly important. “This is a point that gets more important every year. I think the time is over where people will just eat whatever they can get their hands on. They really want to have a story behind it. They really want to know where it comes from, from the beginning until it ends on the plate.”

Pierre Caillet is the owner/head chef at Michelin-star restaurant Le Bec au Cauchois, in Normandy. Pierre spent two years working in Ireland as a chef before returning to France to establish his own restaurant. He has been using Irish beef in his restaurant in France for over �ve years and says there are several attributes that have led him to select Irish beef for his restaurant. “Firstly, because I used to work in Ireland, it is like a souvenir. But also, because of the quality, it is very tender, and the taste is high-quality. A particular quality that is very nice with Irish beef is the marbling.” Sustainable and naturally produced food ingredients are key to Pierre’s recipes. He has his own garden for the restaurant and works closely with local producers to source his fruit and vegetables. Pierre explains that the work of Irish farmers to produce beef responsibly, through the Bord Bia Quality Assurance scheme, and of processors, through Origin Green, are very important to him and his business. Such standards, he explains, are part of the overall ethos of his business. Pierre says the CIBC o�ers a great opportunity for the di�erent chefs to meet and discuss the products, as well as meet with the producers. “Last year, we went to Ireland to visit a farm and met with the producer. It was very interesting. Then, when you are using the product or when you are talking with the customers about the produce, you really know about it and the story behind it.”


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Germany is Europe’s largest market, with a population of over 80 million people and, in 2013, the German grocery market was valued

at approximately €164 billion, which marks an increase of 2.7 per cent from 2012. However, the grocery market is regarded as fragmented and, over the past 10 years, food and drinks imports have steadily increased in the country.

Germany remains one of the key destinations for Irish food and drink exports in Europe. In the first three months of 2014, Ireland has seen a 4.56 per cent increase in exports to the market, compared to the same period in 2013, achieving more than €133 million in sales.

Strong contendersBeef remains the leading export category to the German market. Simon Coveney, Minister for Agriculture, Food and the Marine, is positive about ongoing growth for beef in the German market. He says German consumers demand high quality food products and believes Irish beef is well positioned to respond to these demands. Beef exports to Germany grew by over 5 per cent in 2013, compared to 2012. Bord Bia has been active in promoting Irish beef to German buyers and consumers. In 2011, it commenced a three-year promotional campaign to promote Irish beef in the market. According to Bord Bia, German consumers are showing greater awareness of Irish beef, up from 12 per cent to 52 per cent in 2013. This growing familiarity means Irish beef is the third most recognised imported beef brand in the market. Judith Clinton, German Market Manager, Bord Bia (the Irish Food Board) says: “For the remainder of the year we will be intensifying our beef campaign with

more trade, consumer and PR activity.”Beverages account for the second strongest category of Irish food and drink exports to Germany. Among the success stories are branded drinks, including Bailey’s, Jameson, Tullamore Dew and Connemara Irish Whiskey. Irish dairy and dairy ingredients exports are also proving a hit with buyers in Germany, showing a 42 per cent year-on-year increase in value for the first three months of 2014.

Discounters on topDiscounters still dominate the German market with a share of 43.9 per cent. Supermarkets, hypermarkets and drugstores account for 26 per cent, 22.6 per cent and 7.4 per cent of the market, respectively. As 80 per cent of product listings within the discounters is private label, there is a growing demand for private label products in the market. Bord Bia highlights research, conducted by Matrixlab and Lebensmittelzeitung, Germany’s leading grocery retail newspaper, which found that two key factors German consumers consider when choosing between private label and branded products are: quality and price.

Price is key for German consumers who are prepared to shop around for the best offers. However, consumers are not willing to compromise on quality. In the research by Matrixlab and Lebensmittelzeitung, nine out of 10 consumers surveyed judged the quality of private label to be as good as branded products. Bord Bia says that, in Germany, private label products often fair better than branded in independent quality tests. The private label market has been successfully segmenting into low, medium and premium ranges, which has proved particularly successful in increasing growth in the private label category.

A sustainable futureAccording to Judith the market is responding well to Ireland’s efforts in the area of sustainable food production. In 2014, Origin Green won a Grünes Band (green way) award for sustainability from Huss Media Group. Following the award, Origin Green, the Bord Bia nationwide sustainability programme, received significant coverage in a range of German media publications including:

• Fleischwirtschaft – meat trade magazine with a monthly circulation of 6,500 and reach of 33,833;

• Die Fleischerei – meat trade magazine with a monthly circulation of 6,500 and a reach of 39,441;

• Gastronomie & Hotellerie – food service magazine;

• Agrar Magazine – monthly agricultural magazine with a circulation of 10,000 and reach of 25,700;

• Lebensmittel Praxis – food industry magazine; and,

• GV Kompakt – food service magazine with a circulation of 11,000 and reach of 70,183.

Growing in GermanyPREMIUM BEEF MARKET HOLDS POTENTIAL TO GROW EXPORTS TO GERMANY.

Judith Clinton, Market Manager,

Bord Bia Germany.


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There is growing US consumer interest in ‘natural’ and ‘free-from’ products, along with an increasing consumer interest

in sustainably produced food and drink according to Bord Bia’s (the Irish Food Board) North America Manager, Karen Coyle. Furthermore, consumers are increasingly aware around food production issues such as sustainability, animal welfare and provenance. Karen explains that products with a strong and engaging story are resonating with US consumers and, as a result, Bord Bia believes Irish food and drink products have performed well and will continue to thrive in the market. “No one does all of these better than Ireland,” says Karen. “Our food is grown and produced by people with personality and passion - farmers, cheese makers, fi shermen, brewers, and so on.

“And, as much of Irish food production uses quality primary ingredients – meat, seafood, grains – with minimal processing and is free from artifi cial colours, additives, growth hormones etc., the majority of Irish produced foods meet these growing US consumer trends extraordinarily well.”Karen believes that huge growth potential continues to exist for Irish food and beverage export sales to the US, both in existing (e.g., alcoholic beverages) and new (e.g., beef) product categories. While the US boasts some 30 million Americans of Irish descent, Karen says this is not the key driver in the success of Irish products in the region. Instead, US consumers are attracted to Irish food and drinks imports because of their reputation for high quality and excellent taste.

Quality products“It is less about Ireland and the ancestry of some citizens and more about the quality of the products that Ireland produces and about Ireland being a place that can grow and develop good quality food.”Karen says there has been an overwhelmingly positive response to Bord Bia’s Orgin Green sustainability programme, which will see, by 2016, 100 per cent of Irish food and drink exports coming from suppliers committed to sustainable production and assessed by internationally recognised bodies. “US buyers are very impressed that Ireland is the fi rst and only country in the world to have a national food and drink sustainability programme. “Not only is the US home to many of the world’s largest food manufacturers, supermarket chains and foodservice operators, but many of these companies have the most developed corporate social responsibility programmes and goals. When they learn about the features of Origin Green, they immediately recognise how sourcing from Origin Green Irish companies will assist them achieve their own sustainability targets.”

Value for moneyAnother trend that has been identifi ed in the US, as a result of the recession, is ‘value for money’, which is positively impacting US retailer private label growth, according to Karen. “Ireland has some world-class private label suppliers with tremendous international supply credentials, which are of particular interest as new suppliers to US grocery retail buyers.”

BeveragesThe US is the largest and most profi table liquor market in the world. Irish beverages are leading the way in Irish food and drink exports to the market, accounting for 70 per cent of all exports to the US. Alcohol exports are essentially Irish whiskey and Irish cream liqueur. Of these, the Jameson brand dominates Irish whiskey exports. In 2013, total whiskey sales volume grew by more than 6.2 per cent, outperforming the 1.9 per cent growth in total liquor. However, it is Irish whiskey that is the darling of the sector, with sales volumes up 17.5 per cent.Karen adds: “The explosion of Irish craft distillery developments is fuelling new Irish alcoholic beverage launches, such as the rediscovery of poitín. This meets the US alcohol beverage consumer’s curiosity about new products/fl avours, and the current tremendous interest in cocktails.” Boosted by this trend, products such as Irish cream liqueurs are also proving popular in the US, with the Baileys brand proving the category leader.

DairyAfter alcohol, dairy is the second best performing category for Irish food and drink exports, accounting for 25 per cent of exports. That 25 per cent, Karen explains, is split evenly 50-50 between consumer products and ingredients.“The success of the Kerrygold brand has been a tremendous story. They are now the number one imported butter into the US.” Karen adds that the brand is well positioned to appeal to ‘foodies’ in the market. Furthermore, the Irish Dairy Board (IDB) has also had success with its cheese ranges.

STRONG SALES AND POTENTIAL FOR GROWTH IN NEW SECTORS WILL ENSURE IRISH FOOD EXPORTS CONTINUE TO THRIVE IN THE US.


idb.ie

@irishdairyboard

/irishdairyboard

Bringing the unique taste of Irish dairy around the world

� A temperate climate with natural irrigation Thousands of years of dairy experience Golden colour, creamier taste� A temperate climate with natural irrigation Thousands of years of dairy experience Golden colour, creamier taste� A temperate climate with natural irrigation Thousands of years of dairy experience Golden colour, creamier taste� A temperate climate with natural irrigation Thousands of years of dairy experience Golden colour, creamier taste

7626 IDB Corporate Ad 210x280mm-AW_10/13 09/05/2014 16:56 Page 1


Issue 4 201424


Growing presenceOther categories, including seafood and consumer products are developing markets in the US. Seafood accounts for a small but growing percentage of Irish exports to the US and predominantly consists of smoked and fresh salmon. There is also an emerging US demand for Irish shellfi sh (crab) products. Seafood exports to the US were valued at €3 million in 2013.Packaged exports span an array of categories, including teas, oatmeal and confectionery, from such brands as Barry’s, Bewley’s, McCann’s, Flahavan’s, Butler’s and Aran Candy.

BeefOf particular interest to the Irish food and drinks industry is the potential of a beef export market to the US. Discussions between the Irish Government and US offi cials has been ongoing in this regard and Minister for Agriculture, Food and the Marine, Simon Coveney has stated that he is confi dent of an agreement in the near future. The recent visit to Ireland by US Agriculture Secretary Tom Vilsack and subsequent visit to the US by the Irish Minister are positive signs in that regard. Karen explains that beef plants planning to export to the US must undergo a US Department of Agriculture (USDA) audit and achieve USDA accreditation in order to be able to supply to the US. “A number of Irish beef processors are scheduled to be audited in July 2014, so there is a distinct possibility of Irish beef being available in the US market by late autumn 2014.”In preparation for market access, Bord Bia has undertaken signifi cant work, including commissioning an extensive piece of research with US trade buyers. It has conducted US consumer focus group research, undertaken consumer taste tests and developed an Irish beef identity, which resonates with US target audiences.“As the largest net exporter of beef in the northern hemisphere, Ireland has earned an international reputation as a strong partner to the European grocery trade in the supply of premium, grass-reared product with excellent eating quality. Produced in a sustainable way, on family farms with high animal welfare standards, Irish beef is fully traceable. The features and benefi ts of Irish beef, together with our strong international supply credentials, are proving to be of tremendous interest to the US trade. They are looking for new supply options that appeal to consumers and help deliver a point of difference. The Irish beef offer in the US will primarily be premium cuts. We estimate the short- to medium-term potential for Irish beef will be conservatively $30 million/2,750 tonnes.”

COVENEY MEETS KEY POLITICAL PLAYERS IN USMinister for Agriculture, Food and the Marine, Simon Coveney recently participated in a four-day trade mission across three cities in the US, where he met with senior political � gures and other key in� uencers.The Minister was in the US to promote Irish food, including beef, in anticipation of the opening of the US market to Irish beef in the autumn. The sustainability of the Irish grass-based farm model was a key theme. Bord Bia’s Origin Green Programme, which provides a framework for farmers and processors to commit to sustainability targets, was used as a platform to build a point of di� erentiation for Irish produce with potential purchasers in the US.Speaking in Washington, the Minister referred to the critical importance of getting the Irish message across to key US opinion shapers in the context of the Trade negotiations (TTIP) between the EU and the US. “I am con� dent that for export-focused countries like Ireland, a comprehensive trade agreement with the US can o� er many advantages, but only if it takes account of vulnerable sectors like beef. A balanced deal would also provide tremendous opportunity for increased agri food trade with the US, in particular in the dairy sector.” The Minister also used the opportunity to outline Ireland’s ambitious plans for the development of its agri food sector, based on an environmentally sustainable model for growth. He also acknowledged the progress on the beef access issue, and pressed for access to the US market for Irish sheepmeat.During the visit, the Minister met with Wegmans, a major East coast retail outlet, which will be of key importance to Ireland in the context of getting Irish beef onto shelves in the US. The Minister also o� cially opened an $80 million cheese manufacturing and innovation centre for the Irish Dairy Board in Wisconsin. Concluding, the Minister referred to the critical importance of the relationship with the US for the Irish agri food industry: “Currently, Irish food and drink exports to the US exceed €0.5 billion in value. Irish companies can increase that signi� cantly, based on the high quality of their products, as well as our strong and e� ective regulatory and food safety control systems. Also, the work being done through the Origin Green Programme demonstrates the strong sustainability credentials of Irish farms and processing companies. I am delighted to have been able to play an important part in furthering that agenda with key commercial and political players in the US this week.”

Minister for Agriculture, Food and the Marine Simon Coveney with Dr Joseph Glauber USDA Chief Economist during the Trade and Investment Mission to the US.


Issue 4 2014 25

The Irish Dairy Board (IDB) recently opened a new cheese manufacturing facility at its Thiel Cheese and Ingredients (Thiel)

operations in Wisconsin, marking the completion of an $80 million expansion programme in its US Food Ingredients business. Thiel formulates and produces cheese-based ingredient solutions for US-based food manufacturers and foodservice companies.

Commenting on the announcement Kevin Lane, CEO, IDB, said: “Today marks the completion of a very signifi cant investment programme by IDB into the US food ingredients market and is in line with our growth strategy to invest in high-growth dairy businesses that deliver strong returns to our members. The focus of this investment is on innovation as much as production with our new facility enhancing our ability to create innovative food solutions that meet the

evolving needs of our US customer base and their brands. These innovations and the deep knowledge base at Thiel will be shared across all of our operations, supporting our Group’s NPD growth strategy.”The new $80 million facility was offi cially opened by Simon Coveney, Minister for Agriculture, Food and the Marine, during a recent trade and investment mission to the US.

A major marketJeanne Kelly, IDB, told that the US market is critically important to its overall business. consumer food, represented by IDB’s well-known international brand, Kerrygold, is showing very strong growth, Jeanne explained.“The US is one of our core markets, along with Germany and the UK. On the consumer food side of the business Kerrygold is doing really well over there, with double-digit growth year on year. It’s going to be a key market post-2015.

“We did business in the region of 8,500 tonnes last year and we’re looking at exceeding 10,000 tonnes this year, with a projected 20,000 tonnes by 2018,” Jeanne adds. “We are looking at that consumer food business becoming a $250 million dollar business by 2018.”With the new cheese manufacturing facility at Thiel operational, the food ingredients side of the business is similarly projected to reach $250 million turnover by 2018.Jeanne explains: “We have a team of around 42 people over there, covering the US and Canadian markets, predominantly in the US. Their headquarters are in Evanston, Chicago, with the sales representatives working in the different states around the US. Approximately 75 per cent of the business is direct route to market, via our relationships with the retailers, and approximately 25 per cent is through distributors.”

THE IRISH DAIRY BOARD’S RECENTLY COMPLETED $80 MILLION US FOOD INGREDIENTS INVESTMENT PROGRAMME OPENS THE DOOR TO FUTURE OPPORTUNITIES ACROSS THE ATLANTIC.

IDB shows strength in the US


Simon Coveney, Minister for Agriculture, Food and the Marine; Roisin Hennerty, VP, Irish Dairy Board US; and, Kevin Lane, Irish Dairy Board CEO..


Issue 4 201426

“The opening in Thiel marked the completion of a six-year, $80 million investment programme. Turnover is currently at around $130 million, and we are looking to achieve $250 million by 2018.”How? Partly through natural growth, and partly through mergers and acquisitions (M&A), Jeanne says.“For that target to be hit would involve organic growth but acquisition as well. We have an active M&A programme and we’re always looking out for the next opportunity that would fit the strategy that we have in the US.”Taking its consumer food and food ingredients arms together, IDB’s US business is shaping up to be a half-a-billion-dollar business by 2018.

Building scale According to the IDB, the US expansion programme provides the company with greater scale in the value-added cheese ingredients sector and is in line with its strategy to invest in high-growth and profitable dairy businesses. The new facility will increase IDB’s US food ingredients production capacity by 40 per cent. The centre boasts some of the most advanced dairy processing equipment in the US dairy sector and includes a state-of-the-art Innovation Centre that will provide functional cheese solutions to its US food ingredients and food service customers.

Route to marketThe core purpose of the IDB is to bring quality Irish dairy products to markets around the world. This business provides an important route to market for Irish casein and, through its extensive US customer base, the IDB is opening up further opportunities for Irish dairy products in this market. This, aligned with the overall success of the US operations, will help ensure that IDB continues to deliver a strong return to its members and to Irish dairy farmers.Speaking at the Thiel opening, the

Minister said: “I’m delighted to be here to mark this significant new investment by IDB. This new facility will further strengthen the positioning of Ireland and Irish agri-business expertise in the US, as well as supporting the economic wellbeing of Irish dairy farmers. We are entering an exciting time for the Irish dairy sector as milk quotas are abolished from next April and today’s opening represents the kind of investment that will help the sector realise its true potential.”

Strong performanceThe IDB reported a strong performance from its US Food Ingredients businesses in 2013, with both Thiel Cheese and Ingredients and Meadow Ingredients delivering double-digit volume growth. Wisconsin-based Thiel had a strong year with continued new customer and product success driving 13 per cent year-on-year growth in turnover.Jeanne highlights access to key customers as one of the exciting opportunities offered by the Thiel development.“One of the benefits of Thiel in the US is access. We have around 100-plus key food manufacturing companies that are the customer base for Thiel.“That customer base includes key players within the food industry. So it enables us to have direct access to that customer base which, in turn, allows us to then introduce our other portfolio of products to them as well, in addition to the cheese ingredients we are providing through Thiel.”Meanwhile, Meadow Ingredients, a functional cheese ingredients business in Byron, Minnesota, which customises multi-component cheese solutions for the food manufacturing industry. The business has continued to grow from strength to strength with the Minnesota site producing close to maximum capacity in 2013. The year saw the addition of a significant blue chip customer, which facilitated the 40 per cent year-on-year volume growth.


THE BEST-LOVED IMPORTED BUTTER On the back of a unique grass-fed message that has resonated loudly with the US consumer, IDB’s Kerrygold brand has been building major market momentum that has made it the number one imported butter brand in the US – quite a remarkable achievement.

“Today we’re the number �ve butter brand in the US – which is huge when you look at the size of the US – and we’re the number one imported butter. We’re also the most widely distributed, which is also key,” Jeanne Kelly, IDB, tells

.All Kerrygold products are made with milk from Ireland’s grass-fed milk cows that are free of arti�cial growth hormones.“What makes us massively unique over there is our grass-fed message. It’s probably something a lot of Irish people may take for granted. But, in the US, the American consumer really connects with the grass-fed message so that’s predominantly why we have been so successful to date.”A key part of Kerrygold’s strategy to reach the consumer on the ground is a programme of in-store tastings in US supermarkets. The tastings provide a vehicle to showcase the qualities of the Kerrygold product while at the same time bringing Kerrygold closer to the American consumer.“We do around 20,000 in-store tastings each year,” Jeanne says. “We’re very con�dent that when a consumer tastes a Kerrygold product, we will win on taste every time. For that reason it has become a crucial part of our marketing.”The future is looking very bright for IDB in the US.“How important is the role of the US market? It’s critically important, it’s one of our core markets, and one where we see great opportunity,” Jeanne say.


Issue 4 2014 27

The acquisition of a 75 per cent stake in Irish firm Aran Candy Ltd by Swedish confectionery company Cloetta has paved the way for the next phase

of development in The Jelly Bean Factory’s international success story.

Aran Candy has positioned itself as Europe’s leading producer of gourmet jelly beans, producing over 12 million beans a day at its Blanchardstown manufacturing facility.Its gourmet jelly bean has taken international confectionery markets by storm and, today, Aran exports 98 per cent of production to over 50 countries globally. On foot of this acquisition, the gourmet jelly bean manufacturer will continue to grow and remain based in Ireland while the added reach of the Cloetta Group promises increased access to key markets.

A perfect �tManaging Director Richard Cullen, who founded Aran in 1998 along with his father Peter, says the business development opportunity presented by the Cloetta acquisition was a compelling proposition.“This is a very exciting opportunity for The Jelly Bean Factory,” Richard stated. “We are very pleased to become part of the Cloetta Group. With Cloetta’s focus on brands and strong routes-to-market

in their core markets, I am convinced we will be able to further strengthen and accelerate the growth of The Jelly Bean Factory brand.The acquisition offers The Jelly Bean Factory new possibilities in countries such as Finland, Sweden and Norway, as well as Holland and Italy.“We’ll expand into those markets and we will continue to grow and develop the brand in our core markets. Our number one market is the UK, and we’re also strong in the Middle East. In addition, a couple of our top 10 customers are based in the US. We’re in more than 50 countries worldwide, so our brand has a global appeal.”Shared values were important in the decision to team up with Cloetta. “It’s a good fit,” Richard says. “Like us, they’re also confectionery people, they’re dedicated to confectionery, so they can bring an awful lot to the business.“The culture and core values of Cloetta match very well with those of The Jelly Bean Factory. So, this is a very exciting and positive development.”

100 per cent natural �avoursRichard points to a number of key features of The Jelly Bean Factory brand that have been crucial in driving growth. The demand for a high-quality product is reflected in increased consumer awareness of, and interest in, the product.

“There are a number of ‘free-froms’ that the brand offers,” Richard says. “We’re quite unique in that we never use artificial colours or flavours. That has opened up a number of markets for us. People are becoming more aware; if they’re going to eat their treat and have some confectionery, they want to do it with a quality product. And one that has a bit of fun and variety. We offer 36 flavours whereas many confectionery products come in just five or six flavours.“In addition to that the jelly bean is gluten free, nut free, GMO free, gelatine free, kosher certified and halal compliant, as well as being suitable for vegetarians and coeliacs.”A commitment to its branded jelly bean product has been a key characteristic of Aran’s business model.“We took a strategic decision in the mid-2000s that we would concentrate on our branded business. We have no private label business with our core product, we don’t offer private label to anyone.”

NPD“Product development and R&D is very important to us,” Richard explains. “There are a lot of exciting things we’re working on at the moment to take The Jelly Bean Factory to the next level. The company will continue to grow and will remain based in Ireland so there’s no change with regard to that. It’s exciting times.”

In good companyEXCITING TIMES LIE AHEAD FOR THE IRISH PIONEERS OF THE GOURMET JELLY BEAN AS THEY JOIN FORCES WITH A MAJOR EUROPEAN CONFECTIONERY COMPANY.



Issue 4 201428

In June 2014, Flahavan’s welcomed Yu-Seung Kim a buyer from the premium Hyundai Department Store chain in Korea where its hot-

oat products are currently on sale. Korea is just one of several emerging markets for the Irish-based cereal manufacturer, which has global expansion on its agenda.

“We have seen the footprint of the business and our product portfolio increase over the past few years,” says John Noonan, Sales and Marketing Director, Flahavan’s. Currently, exports account for between 15 and 20 per cent of Flahavan’s annual output.“The Irish market would be our core market,” explains John. The UK, where Flahavan’s has secured listings with Tesco, Sainsbury’s, Waitrose, Asda and the Wholefoods Market in Kensington, represents the company’s largest export market. Nevertheless, the company’s brand has been reaching consumers in

Russia and northern Europe; the Middle East; the US; and Asia. James Flahavan, Business Development Manager, Flahavan’s, notes: “Hot oats and hot cereals tend to be consumed in certain geographical locations around the world. The countries that are high consumers of oats are Ireland, the UK, Scotland, the US, Canada, the likes of the Nordic countries and across to Russia.”The listing with Russia was generated through Bord Bia’s Marketplace International where Flahavan’s met with buyers from Globus Gourmet. “We have been selling with them for about two to two and a half years and the market has been going really well for us.” Last year, Flahavan’s ran a promotion with Globus Gourmet to build awareness of the brand, adding its branding to the store’s grocery bags. “It went down well with their customers and people in Russia are starting to appreciate Irish oats as premium oatmeal.”

Niche inroadsJames explains that, when entering new markets, the company initially focuses on premium retailers. He explains that it can be easier to enter new markets through premium channels, which can then fi lter down into the mass market. “As the business picks up and volumes increase, it will become easier to move into the more everyday markets, if the product has already been in a premium market.”

Stateside success Flahavan’s began exporting its cereal products to the US in December 2010. The company carried out extensive research into the specifi c market trends and nuances of the market ahead of its decision to export to the region. “The premium type of oats in the US would be called steel-cut oatmeal, which we would call ‘pinhead’ oatmeal in Ireland. So, we did have to tailor our product to the conditions in the market that we

FLAHAVAN’S, AN IRISH HOUSEHOLD BRAND, IS EXPANDING ITS GLOBAL PRESENCE.


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were going into. Rather than simply hide them with existing products, we took the time to research what would be the best one to resonate with the consumer. That is why the ‘steel cut’ oatmeal was developed to go into that particular market.”Flahavan’s has secured listings with “mid- to upper-tier retail outlets, like Wholefoods, Kings, Wegmans, Myer, Jewel, and HEB”. The main concentration of sales in the US is on the east coast states, such as New York, Philadelphia, Washington and Boston, as well as over to Chicago; places, James says, that tend to get colder winters. There is a growing market in the mid-west. James explains that locations such as Florida and Texas are also successful markets for Flahavan’s. “I think a lot of that is due to the demographic of people that eat oatmeal. A lot of people that retire, who want to look after their health and their heart would actually move down to the hotter climates but would still eat hot cereals.”

Heritage and qualityJames explains that, while the Flahavan’s brand is well-known in Ireland, it had to tailor its packaging for the US market to convey the messages of heritage and authenticity for consumers. “We found out in consumer research we did in the US that there was a positive attitude to porridge oat product coming from Ireland,” says John. “The Irish origin of oats backs into their understanding of the positive image that they have of Ireland as a point of origin for good quality food. This aligns with and supports the proposition of Flahavan’s Irish Oatmeal.”Flahavan’s is an Origin Green verified member and James says sustainability is part of the fabric of the company. “We feel that this is part of our DNA. We feel that the sustainability factor is an integral part of the way that we go

about our business. When we actually go to buyers in the US and UK, there is almost an expectation from them, because we are coming from Ireland and we have a rich and traditional heritage, that we are, by nature, a ‘green’ company as well.”Located on the same site for over 200 years, one of the initiatives under its sustainability agenda was to recommission the old millstream for power gerneration at the site. It now generates between five per cent and 10 per cent of the electricity requirements for the facility. Further sustainability features include burning by-product from its products to generate steam for the cooking process, which saves approximately 400,000 litres of diesel per year, as well as cutting down on waste and overall emissions. “Sustainability is very important to us and what we have noticed over the last five to 10 years is that business-to-business and business-to-consumer customers are realising the importance of the sustainability part of the business,” says James.

Breaking with tradition While the biggest markets for Flahavan’s cereals are countries with colder winters, the company has found success in some unexpected markets. It has been retailing in the Middle East, through the retailer Spinneys. James comments: “We sell in the UAE, in a number of stores around Abu Dhabi. It’s not traditionally a hot cereal, oat-eating country, so there is a little bit of work that needs to be done there, but one of the benefits of eating oats is how full it keeps people for longer.“We find in the Muslim world, particularly during Ramadan, where people fast from sunrise to sunset, they tend to look for foods like oats during that time.” In Korea, Flahavan’s products are used, not as hot breakfast cereals, but instead are ingredients in savoury dishes with, for example, anchovies and spring onions. James says: “In terms of trying to develop a new market, we will have to explore the different ways people consume the product.”

James Flahavan, Flahavan’s; Yu-Seung Kim, Hyundai Department Store; and John Flahavan, Flahavan’s.


Issue 4 2014 31


Irish food and drink exports to China have doubled in the last three years to reach over €400 million. A key market destination for Irish food and

drink exports, China is currently the second largest market for Irish dairy exports and the third largest market for pork exports. Seafood is also a growing category for Irish exports to the region.

With China earmarked as a growth region for Irish food and drink exports, Bord Bia, the Irish Food Board, established an offi ce in Shanghai. The team in China, under the direction of James O’Donnell, Bord Bia Asia Director, assists China’s food industry in building solid trade links with Irish industry.

Dairy and dairy ingredientsChina is the world’s largest dairy buyer, while Ireland is a major exporter making us ideal partners, says James. Ireland’s dairy industry has an impressive record in developing strong business relations in China, with many leading dairy and dairy companies – Kerry Group, Glanbia, Irish Dairy Board and Dairygold – now having a presence in the market and developing close partnerships with key Chinese dairy and infant formula companies.With Ireland on track to increase its production by 50 per cent over the next fi ve years, as a consequence of the elimination of Europe’s Common Agriculture Policy dairy quota system in 2015, signifi cant investments in infrastructure and capabilities have been made in order to handle the increased output.James says the relationships between Chinese and Irish dairy companies

are not just built on a growing supply capacity. “Ireland has also invested heavily at both Government and industry level in R&D. This engagement has been particularly successful in our dairy sector where the researchers, particularly in the area of probotics are considered as world leaders in this area.”

PigmeatIrish pigmeat exports increased by 3 per cent to €525 million in 2013. Exports of Irish pigmeat to international markets performed strongly for much of the year, with solid shipments to China, which represents the second biggest market for Irish pigmeat exports in terms of volume. Despite slaughtering approximately 90 million pigs each year, China still has high import requirements for pigmeat and Irish companies are committed to fulfi lling a part of this gap. The Chinese authorities have approved over 80 per cent of Ireland’s pigmeat industry for direct export to the mainland.

Seafood China recorded a strong performance for pelagic species and is now established as one of our Ireland’s key export destinations for shellfi sh. Crab exports to China put in a particularly strong performance in 2013 with an increase of 168 per cent. According to Bord Bia, boarfi sh presents an opportunity for signifi cant growth of Irish seafood exports, particularly in China. Ireland has an EU quota of 86,000 tonnes of this species, which is attractively priced and very versatile in use. Bord Bia is currently undertaking a major promotional drive for this sector at both trade and consumer level.

Potential The Chinese market is viewed as a key location for Irish food and drink exports in the future, particularly as the demand in China for protein-rich diets continues to grow. Furthermore, there are ongoing talks between Irish and Chinese offi cials to open the Chinese market, where demand is growing very strongly over the last two years, to Irish beef exports. “Ireland’s beef industry market position is in the quality segment. Its customers and consumers, 75 per cent of whom are in Europe, are among the most demanding and discerning in the world. As one of the world’s leading beef exporters, for example, Ireland’s beef industry portfolio in Europe, which includes high-end retail and foodservice customer, is second to none,” says James. “The Irish Government is at present in discussions with our counterparts here in China and I look forward to a fruitful conclusion allowing Irish beef access to the Chinese market.”A senior Chinese politician Liu Yunshan recently visited Ireland where he had the opportunity to visit a beef and sheep farm in Co. Wicklow. The Short family farm is member of the Bord Bia Beef and Lamb Quality Assurance Scheme and is also participating in the Origin Green sustainability programme, which monitors the Carbon Footprint of beef production. The visit gave Mr Liu the opportunity to witness fi rst hand Ireland’s grass-fed beef and lamb production systems. During the visit, the Minister for Agriculture, Food and the Marine, Simon Coveney, took the opportunity to announce that Chinese authorities have given the green light to initiate discussions on securing access for Irish sheepmeat.

IN 2013 IRISH FOOD AND DRINKS EXPORTS TO CHINA INCREASED BY 40 PER CENT, REACHING OVER €400 MILLION IN VALUE FOR THE YEAR.


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Boarfish has been well known in Ireland for a long time but, until recently, few people in China had heard of ‘the little red fish’. That is all set to

change, however, as Bord Bia (the Irish Food Board) recently launched this wild-caught species in the Chinese market, with offerings for both retail and foodservice channels.

Market appealBoarfish is a schooling member of the dory family, with firm tasty flesh it is caught off the west coast of Ireland from September to March. While fishing is seasonal, Irish producers can guarantee a year-round supply of boarfish as Ireland has two-thirds (88,000 million tonnes) of the total EU quota. Boarfish has many characteristics, which are considered excellent selling points in the Chinese market. For example, the small size (typical specimens range from 14-18cm in length) is ideal for traditional Chinese communal dishes such as hot-pot, where diners share a range of dishes, and the portion-sized boarfish is ideal. Chinese consumers typically consume fish in whole or headed-and-gutted formats, so they can be assured that they know what they are eating. The versatile nature of boarfish, coupled with its good flavour and excellent nutritional profile, has attracted a lot of interest from schools and other institutions. Studies have shown that boarfish has twice the levels of omega-3 than cod and also has higher levels of omega-6, oils which are critical to healthy brain development in young children.Furthermore, as the colour red is considered auspicious in Chinese culture, the beautiful reddish-gold skin of the boarfish is perceived, not just as attractive, but also lucky. The official name of boarfish in Chinese is ‘fanqiyu’ but its pretty colouring is reflected in the local translation of the name boarfish to ‘little red fish’. Finally, as seafood imported to China is typically expensive, Irish boarfish has all the benefits of wild-caught imported fish at a price families can afford.

Dalian debutIrish boarfish debuted to an audience of key Chinese buyers at the China Seafood and Fisheries Expo – Asia’s largest seafood tradeshow – in Dalian in November 2013. A boarfish seminar and tasting event showcasing the various formats (whole round, headed-and-gutted etc) for both foodservice and retail was held at the Expo to build raise awareness and generate feedback from Chinese buyers.Bord Bia has continued building on the buyer feedback from the Dalian Expo, as well as consumer feedback garnered through retail trials conducted with a local importer. Recently Bord Bia collaborated with Shanghai-based Chinese celebrity chef, Brother Yu, to develop a set of six recipes specifically for the Chinese market. The recipes, which range from Sichuan Peppercorn Boarfish to Smokey Shanghai Boarfish, have been very well received by local consumers as they were developed for the local palate, rather than simply transplanting existing western recipes into the Chinese market.Furthermore, Bord Bia developed an online sales promotion with Tmall, the the leading online busines-to-consumer retailer in China to coincide with St Patrick’s week. The results were very positive with boarfish accounting for 7 per cent of all seafood sales over the weeklong event. Boarfish received very positive buyer feedback with a rating of 4.8 out of a maximum five stars.Speaking about developing boarfish in China, Bord Bia’s James O’Donnell says: “It is really great to see the demand for a new product grow so quickly. All the feedback from local processors and consumers has been very positive and people really like the flavour. We have cooperated with local chefs to develop recipes that are more suitable for local tastes and the online exposure during the Tmall Irish Week promotion was an excellent opportunity to bring the ‘little red fish’ to our Chinese friends.”

FISHED IN THE CLEAN WATERS OFF IRELAND’S COASTLINE, IRISH BOARFISH IS AN AFFORDABLE SEAFOOD IMPORT THAT IS GAINING TRACTION WITH CHINESE BUYERS.

Ireland’s ‘Little Red Fish’ in China



Issue 4 2014 33

Provisional figures for 2013 show that Irish food and drink exports to Japan were valued at over €25 million. Bord Bia (the Irish

Food Board) believes there is strong potential to increase that value as the market reopened, last year, to Irish beef exports.

The Minister for Agriculture, Food and the Marine, Simon Coveney and Taoiseach, Enda Kenny travelled to Japan in 2013 to lead a delegation of Irish agri-food companies on a trade mission to the region. Thirteen food companies, as well as representatives from Bord Bia, Teagasc and IBEC, also participated in the visit. The Minister described the visit as a tremendous opportunity for Irish food business operators to build contacts with the “influential traders and potential purchasers of their products in a key overseas market for their exports”. He added: “Japan is a sophisticated premium market, which values high quality, sustainable and safe food and this is exactly the offer that we are emphasising.” The Minister described the participation of the Taoiseach in the trade visit as “testament” to the critical importance of the Irish agri-food sector to Ireland’s economy.

Beef talksThe decision to allow access for Irish beef to Japan came after a meeting between the Taoiseach and the Minister with Japanese Prime Minister Shinzo Abe in Tokyo. Bord Bia estimates that the short to medium term opportunity for Irish beef in Japan is worth in the region of €10 million, with potential for significant

expansion beyond that over time. The decision means that Ireland is one of a select group of countries allowed to export beef to the Japanese market.The Minister said the decision to allow access for Irish beef to Japan is very significant, and reflects Japanese confidence in the integrity of Irish food safety systems and in the quality of Irish beef. “Japan is a sophisticated market with sophisticated consumers, who are seeking beef product that Ireland can provide. Japan also sets a benchmark for food safety standards and, for that reason, access for Irish beef is very significant from a reputation point of view.”He added that the landmark decision “proves, yet again, the value of investing in our sustainability and traceability systems and more importantly being able to verify these claims to global customers”.

Market opportunityCommenting on Japan’s decision to reopen the market to Irish beef, James O’Donnell, Asia Director, Bord Bia, says Bord Bia is excited about the opportunity this presents for Irish beef producers. Ireland has a long history of trade in beef with Japan, particularly in mountain chain tripe where the Irish product was considered premium. He explains that Irish beef is renowned for its quality and unique taste, which is a result of Ireland’s grass-based production system. He believes this quality, which is supported through Bord Bia’s Beef and Lamb Quality Assurance Scheme and Origin Green sustainability initiative, appeal to Japan’s discerning consumers.

EXPORTS OF IRISH BEEF TO JAPAN ARE EXPECTED TO BOLSTER THE VALUE OF IRISH FOOD AND DRINKS TRADE TO THE REGION.

Exports to Japan beef up


www.irishfoodmagazine.comwww.irishfoodmagazine.com

Food Harvest 2020 is the Government roadmap for Ireland’s food, fi sheries and drinks industry. It predicts Irish food and drink exports

have the potential to increase, on 2011 fi gures, by 42 per cent by 2020. Already, Ireland exports between 80 per cent and 90 per cent of the food and drinks it produces. Further increases in production will mean Ireland is an attractive source of food for international markets well into the future.

The Middle East has been earmarked as a key destination for future outputs. It currently imports 90 per cent of its food needs and its climate means domestic production is challenging. Ireland’s temperate climate and annual rainfall mean it is an ideal location to produce dairy and meat products, both of which appeal to buyers in Middle Eastern markets, says Michael Hussey, Middle East Manager, Bord Bia (the Irish Food Board).

Vibrant marketsThe emerging Middle East markets, according to Michael, are affl uent, with a young, urban population. He says population growth in the region is staggering, for example, in Saudi Arabia 50 per cent of the population is under 35 years of age. He describes the market as young and vibrant, with plenty of opportunity.

Strong start In 2013, Irish food and drink exports to the Middle East stood at €312 million. Michael says 2014 has seen a strong start and believes Ireland is well on target to achieving the Government’s objective of doubling exports into the region by 2020. “I think we are making a good start on that. The bulk of that volume will come in the dairy side, when the dairy quotas fi nish, so I think we will see a big growth from 2015/2016 onwards.”

Delivering dairy With a predicted 50 per cent increase in dairy output, the Irish dairy industry is preparing to:• increase its sales and marketing

resources in international markets;• to increase activity in product

innovation to meet customer requirements; and,

• to seek out strategic opportunities in international markets, including the Middle East.

Leading Irish dairy and dairy ingredients companies have already made moves in this direction with the likes of the Kerry Group, the Irish Dairy Board (IDB), Glanbia and Dairygold already supplying the region.Michael says the dairy industry also presents strong possibilities for joint ventures between the two regions, particularly on the dairy side. “I

am talking about Saudi Arabia in particular. They are trying to secure, long-term supply agreements with Irish dairy companies for a number of reasons: they know that we will have a lot more product coming on stream; the quality of our product; our traceability systems; and our sustainability credentials.

Further opportunitiesThe decision by the Cooperation Council for the Arab States of the Gulf – known as the Gulf Cooperation Council (GCC) and consisting of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – to reopen markets to Irish beef and sheep meat exports was an important one for Irish exporters. Furthermore, Michael says there are opportunities for Irish brands in high-end retail outlets that appeal to the ex-pat and wealthy consumers in the region. The food service industry also presents opportunities for Irish exporters, Michael adds. “There are defi nitely opportunities at the top end of Horeca. Distributors are selling into fi ve-star hotels, but that is mainly in the United Arab Emirates, where you have a strong tourist industry.” He adds that destinations such as Dubai, Abu Dhabi and, to some extent, Qatar, where tourism for fi ve-star holidays is strong, also hold potential.

IRELAND EXPORTS OVER 80 PER CENT OF THE FOOD IT PRODUCES, MAKING IT AN ATTRACTIVE IMPORT SOURCE FOR THE MIDDLE EAST.

Irelandlooks east

Issue 4 201434



Minister for Agriculture, Food and the Marine, Simon Coveney, explored the range of Irish products available in Spinneys during a trade mission to the Middle East.

Issue 4 2014 35

Established in 2000, Pan Euro Foods is an importer and brand builder for food companies developing business in the Gulf region.

Conor Ryan, co-founder of Pan Euro Foods, says the Middle East market is hungry for new products and his mission is to introduce buyers to a range of options.

As well as Irish products, Conor also markets products from North America and Europe. He says he promotes products based on their merit and value. For Irish products, Conor explains that Ireland’s reputation for its lush, green countryside is an appealing selling point for customers in the market. “I tend to bring a lot of the buyers over to Ireland. And, to be honest, a lot of them are amazed when they see the country, they don’t appreciate how green it is until they see it first hand.”

High-end retailConor says Irish products are well received in high-end retail outlets in the Middle East market such as Spinneys, Lulu, Choithrams, Carrefour and, most recently, Tamimi in Saudi Arabia. Pan Euro works with suppliers entering the market to ensure they comply with market regulations, such as packaging, and it has built up a great knowledge in this complex area. “The law here states that the production and expiry date have to be ink jetted on to each pack, which we don’t do in Ireland. The other thing is, we have to include a label with all of the ingredients in Arabic.”

Pan Euro is focused on developing brands in the market through creating retail solutions for customers in the region. They do this by creating brand awareness through social media and getting the product shelf space which they monitor. They have also moved into getting private label solutions using Irish manfacturers for Middle East retailers and this is an area they believe offers great potential.He adds that, as the market is still in its infancy, buyers are not likely to buy full pallets of products, so Pan Euro Foods creates mixed product pallets that will satisfy the various needs of buyers.

Popular destinationConor says there is strong interest from Irish exporters looking to enter the Middle East market. Current Irish clients include: Glenisk; Cashel Blue; Shellfish de la Mer; Carr’s Seafood; Silver Hill; Dee’s Wholefoods; Glenilen Farms; Clonakilty pudding; Tayto; Avonmore; Country Cuisine; Golden Bake; Brogan’s; Chia Bia; Brodericks; Nestbox; and Keogh’s potatoes and crisps.“The market is growing for us at a huge rate and Ireland is a recognised source of food in the Middle East now. When we started there were no Irish brands on the shelf.” Conor adds that, while this was initially driven by expatriates, the level of exports today means

there has been a cross over into the local consumer market. “Bord Bia, and especially Michael Hussey who is based in the market, are a huge help in terms of getting buyers over from the Irish market.”Conor also encourages local buyers to visit Ireland where he brings them on factory visits and visits to producers. “They then realise the standards that we have here in Ireland.”

CONOR RYAN TELLS ABOUT WORKING ON THE GROUND IN THE MIDDLE EAST FOR IRISH FOOD AND DRINK BRANDS.

Face to face with Pan Euro Foods

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Headline Headline

www.irishfoodmagazine.comGoodfella’s Pizza has enjoyed international success in its fi rst two decades and the company is exploring new markets and opportunities,

most recently in the Middle East.

Goodfella’s has been exporting to the United Arab Emirates for four years, where it is listed in some of the premium retailers in the market, including: Carrefour, Lulu and Spinneys. In Qatar, the company has 100 per cent distribution through retailers: Carrefour, Geant and Lulu. However, Liam Hyland, Export Director of Green Isle Foods, which manufactures Goodfella’s, says that the brand is just about to begin retailing its customised product solution in Saudi Arabia, which he describes as the pinnacle of success in the region. “Associated with that is a lot of regulatory issues, which we have now come through. We expect sales to begin on the other side of Ramadan, so we will be up and going in the autumn.”

Brand recognitionCurrently, Liam explains, the popularity of the brand rests with the expatriate communities but he believes brand

popularity is growing among locals. “It’s in its infancy, but it is getting a good deal of traction. The brand has certainly slotted in well so far without a lot of backup, and we have the quality to back it up. We have started now, in Qatar, doing in-store tastings. We have also started a programme of support for the brand and that is having very positive results.”The Goodfella’s brand enjoys a strong position in the UK retail market and this has supported growth of the brand in regions with large UK expatriate communities, such as Malta, Cyprus, and the south of Spain. Furthermore, Goodfella’s has enjoyed success in northern Europe and in Scandinavian countries.

Ongoing reinventionTo celebrate its birthday, Goodfella’s is running a social media campaign called ’21 Years Yum’. It has also relaunched its take-away range to include a sauce pot. “We are getting huge reaction to that because it is a world-fi rst for a frozen pizza to have dip pots included in the pack,” explains Liam. Research and development plays a vital role in Goodfella’s business, according to Liam. “We have a comitted R&D team

in our business and have group, 2sisters Food Group, R&D input as well. The life cycle of frozen food products is limited, so you have to constantly innovate and reinvent.”

Private labelAs an example, Liam refers to the private label pizza offering that Green Isle Foods produce for Asda in the UK. “Asda’s ‘Flavours of the World’ concept requires us, Asda’s pizza partner, to continuously feed through innovative, ethnic concepts.” Those concepts have included a Chinese pizza with peking duck and hoi sin sauce; an Indian curry pizza; and a Greek feta cheese pizza. “It typifi es what’s going on in frozen food because the category constantly requires reinvigoration and these pizzas are never a permanent fi xture, they are constantly adding a new ethnic concept; it could be Tex Mex, Indian or Chinese. But they are constantly rotating to keep the consumer interested in the catetgory.” As well as its brand success, Green Isle Foods has also seen success in its private label business and, today, is the largest private label pizza supplier in the UK market, with a growing private label business in northern Europe.

AS GOODFELLA’S PIZZA, THE IRISH PIZZA BRAND, TURNS 21 IN 2014, IT CONTINUES TO EXPAND ITS REPUTATION IN EMERGING MARKETS.



Issue 4 2014 37




AS IRISH FOOD AND DRINK EXPORTS INCREASE, THEY HAVE THE POTENTIAL TO MEET THE NEEDS OF AFRICA’S RISING POPULATION AND EXPANDING MIDDLE CLASS.

Into Africa

Africa has been identifi ed by Bord Bia (the Irish Food Board) as an emerging market with signifi cant potential for Irish food

and drinks exports. “Africa is set to play an important role in the growth of Irish food exports,” says Claudia Saumell, Africa Manager, Bord Bia. “With a young and growing population, increased demand from Africa is being factored into the growth strategies of Irish food companies, particularly our dairy sector.”

According to a report from the McKinsey Africa Consumer Insights Center, Africa is the second-fastest growing market, after Asia. The report also found that African’s spend more of their income on food and groceries compared to consumers in Brazil, Russia, China and India. International markets have become increasingly important to Irish food and drink exporters in recent years. Markets outside the UK and EU accounted for 20 per cent of the €7 billion of food and drink exports in 2009 but 26 per cent of the €10 billion in 2013. This growth refl ects the increased focus

Irish food and drink companies have placed on real opportunities in emerging markets. Africa has proven itself to be a key market with Irish food and drink exports exceeding €525 million in 2013, up 33 per cent on the €395 million of exports in 2009. Claudia explains that, at present, dairy ingredients (SMP - skimmed milk powder, FFMP - Fat Filled milk powder and WMP - whole milk powder), pelagic fi sh and beverages account for the largest proportion of exports to the region.

Dairy demandOf those, dairy is by far the largest and, according to Claudia, accounts for approximately 70-75 per cent of all Irish food and drink exports to Africa. Claudia explains that the markets in Africa vary signifi cantly in terms of demand, based on a number of factors, including consumer purchasing power. “African markets are important customers of a range of milk powders, including whole milk powder, skimmed milk powder and fat fi lled milk powder. Nutrition and convenience are important. Consumers mix the powders with water and drink it,” says Claudia.

“There is a clear distinction amongst

markets within Africa. Infrastructure, income and consumption habits vary from region to region.” In North Africa, she explains, there is a strong market for dairy powders and cheese because there are a number of processed cheese manufacturers in the region. In South Africa, which Claudia describes as having a more progressive retail market, branded Irish butter and cheeses are available in modern retail outlets. In the west, Claudia explains, where there is comparatively less wealth and a less developed retail supply chain, consumer demand is strong for milk powders rather than cheese or butter. As Ireland prepares for the end of European-wide dairy quotas, Africa has been earmarked as one potential destination for the increased output, which is expected to increase by 50 per cent to reach 8 billion litres by 2020. Claudia highlights that leading Irish dairy ingredients companies, such as Glanbia, the Irish Dairy Board, Kerry Group, Dairygold and Lakeland Dairies have developed long-standing


Issue 4 201438


Claudia Saumell, Bord Bia Africa Market Manager (above) hosteda visit to Ireland by Moroccan buyer, Maroc Bovins, who was interested in learning more about Ireland’s beef industry.Claudia tells about the trip:

WHAT DID THE TRIP INVOLVE?The trip involved a series of meetings with Irish livestock exporters and a visit to a Castlerea Mart where we could see � rst-hand how a cattle auction works in Ireland. It was extremely interesting for Maroc Bovins to see how Ireland remains so traditional in this business. WHAT ARE THE KEY ATTRIBUTES OF THE IRISH CATTLE INDUSTRY THAT APPEAL TO MOROCCAN BUYERS?The key attribute is the performance of the animal. In Morocco, they need to buy feed for the animals so the ratio of the time you need for the animal to gain weight and the quantity of the feed you need to buy is crucial. WHAT WAS THE BUYER MOST IMPRESSED WITH DURING THE VISIT?I think that the buyer was very impressed when he saw how Irish animals are and at the amount of time they spend outdoors on a grass-fed diet. All the companies we met were also very hospitable and he felt very welcomed.The fact that most of the livestock businesses are family units was also well perceived. WHY DOES IRELAND’S GRASS-FED SYSTEM APPEAL TO BUYERS IN MOROCCO?Moroccan breeders cannot achieve this in Morocco because of the weather. It is all very dry and animals need to be given supplementary food. It is an enormous advantage for a livestock breeder to have a grass-fed diet. They really appreciate the di� erence this makes to the quality of the meat.

and strong trading relationships in Africa, these relationships will play a key role in providing new customers for Ireland’s new milk.

Seafood selectionIrish seafood exports to Africa are valued at more than €90 million, which represents around 17 per cent of total Irish food and drink exports to the region. The main destination for Irish

seafood in Africa is West Africa, says Claudia. “Nigeria is by far the best performing market for Irish seafood exports, with more than €52 million in sales, representing more than half of the value of Irish seafood in the African territory.” Another two important markets in West Africa are Cameroon and Ghana, which represent nearly 30 per cent and 4 per cent respectively of the value of seafood exports to the continent.

“The type of product required by the market is large volumes of pelagic fi sh, block frozen, with no processing, and simple packaging of 20kg to 25kg boxes, which allows Irish seafood exporters to supply customers with a high quality product competitively. Pelagic fi sh is well-established as an important source of affordable nutrition for consumers across west Africa.

BeveragesIrish beverage exports to Africa amount to €19.6 million. The main markets are South Africa, Nigeria, Egypt and Kenya. “The potential for the beverage market in Africa is exciting, not only because of the expected population increase but also because there is a rising middle class with increasing disposable income.”New packaging formats are a key trend in the highly competitive beverage market. They are intended to meet more affordable prices and to ease distribution, which is, in most cases, extremely challenging according to Claudia. Innovation in packaging is a key factor for the African region. One needs to stand out from the competition, Claudia notes.

Top destinationsNigeria is the biggest customer of Irish food and drink exports to Africa. It is the largest country on the continent and is dependent on food and drink imports for its growing population. In 2013, Irish food and drink exports to Nigeria were valued at over €173 million, led by the beverage and dairy categories.Senegal and South Africa represent the second and third largest destinations for Irish food and drink exports, valued at over €56 million and €47 million respectively. Both markets are led by dairy exports. The ability of Irish food and drink companies to meet the needs of international customers provides a solid basis from which Irish food and drink companies can further enhance their long standing supply relationships with customers in Africa, Claudia concludes.


Reason says:invest now

to grow.

Reason says:Reason says:Reason says:invest now invest now

to grow.to grow.

Instinct says:manage the current

risks and challenges.

Instinct says:Instinct says:manage the current manage the current

risks and challenges. risks and challenges.

© 2013 Grant Thornton. All rights reserved. Authorised by the Institute of Chartered Accountants in Ireland to carry on investment business. Grant Thornton is a member fi rm of Grant Thornton International Ltd. (Grant Thornton International). Grant Thornton

International and the member fi rms are not a worldwide partnership. Services are delivered independently by the member fi rms.

Business decisions for growth are rarely black

or white. Dynamic organisations need to apply

both reason and instinct to decision making.

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Issue 4 2014


40

Durban, South Africa, recently became home to Kerry Group’s new Regional Development and Application Centre. The

new centre, which will serve Kerry’s expanding global, regional and local customer base in sub-Saharan Africa was offi cially opened by Stan McCarthy, Kerry Group Chief Executive, in the presence of Ireland’s Ambassador to South Africa, His Excellency Brendan McMahon.

Stan McCarthy said the new Durban-based Kerry Centre will serve as a platform to expand the Group’s presence in Africa, capitalising on sectoral growth opportunities in sub-Saharan Africa and meeting the requirements of Kerry customers in what is the second fastest growing region of the world. He commented: “With over €1 billion Kerry Group revenue in developing markets, we are fi rmly focused on our developing markets growth strategy. Our customers are signifi cantly broadening their presence in such fast growing markets – hence the strategic importance of our new Regional Development and Application Centre in Durban, which will support the day-to-day requirements of Kerry

customers in sub-Saharan Africa. The new Centre will work closely with the Group’s Global Technology and Innovation Centre for EMEA markets which is currently under construction in Ireland.”The CEO described the opening as further affi rmation of the Group’s commitment to Growth in Africa. It follows recent key investments by the Group in South Africa, including its acquisitions of FlavourCraft, Cargill’s fl avours business, and Orley Foods. “We will align our Kerry Taste and Nutritional offerings with local market trends and consumer demand to drive innovation across industry growth categories including the meat, sauce, prepared foods, snack, bakery, confectionery and beverage sectors.” He added: “Kerry’s Durban Centre will support our global customers who are expanding their regional footprint, while bringing the benefi ts of the Group’s leading technology portfolio to local food and beverage producers.”

NigeriaThe opening of the offi ce in Durban follows the formal establishment of a Kerry Commercial Offi ce in Lagos, Nigeria in November 2013. Located in

the Illupeju district of Lagos, the new offi ce will serve as the Group’s global and regional customer base in Nigeria and the wider west-African region.Scott Scharinger, President Kerry Ingredients and Flavours EMEA Developing Markets, described the establishment of a Commercial Offi ce in Nigeria as “an important step towards increasing Kerry’s service to our global and regional customers within this region”.

Emerging marketsAs Europe has faced challenging market conditions, which have impacted on the growth of many food and beverage segments, the Kerry Group has continued to realign its regional business through the Group’s 1 Kerry Business Transformation programme. This includes a major focus on expanding business growth platforms in EMEA developing markets. Kerry says that regions, including the Middle East; North Africa and Turkey; Russia and Eastern Europe; and sub-Saharan Africa achieved excellent results to-date through increased innovation and development. Revenues for the EMEA region were valued at €1,601 million in 2013.

African plans for KerryKERRY GROUP IS SHOWING ITS COMMITMENT TO EMERGING MARKETS IN AFRICA.


Issue 4 2014 41

Keeping It Real is one of the key trends that Dawn Farms, one of Europe’s major suppliers of pizza toppings (including

pepperoni, salami and chorizo), sandwich meats and cooked crispy bacon to the international foodservice industry, is adopting in its approach to product development. This trend means that, apart from seeking value for money, consumers are looking for real, authentic food experiences, which have evolved from local and seasonal products to hot, spicy and colourful global cuisines.

Taking it to the streetsThe popularity of the street food movement in particular, has helped to bring this trend to the forefront. According to Dawn Farms, global fl avours that are proving popular with customers include: Mexican, South American, American BBQ and Middle-Eastern. “Street food is all about taking the fl avours and cooking methods, like slow, braised and chargrilled, from these global regions and interpreting them for foodservice and retail concepts,” says Conor Cahill, Head of Science and Innovation at Dawn Farms’ headquarters in Naas, Co. Kildare. “This applies not just to handheld snacking concepts but to pizza toppings,

sandwich fi llers and ready meals. “Ingredients like our oven roasted pulled pork and barbacoa beef – which lends itself to very generous pizza coverage – and chorizo, are some of the meaty toppings ideally suited to tap into this growing street food movement. We expect to see a further surge in street food’s popularity following the World Cup in Brazil, right through to the Olympic and Paralympic Games in 2016 and beyond, given that Rio is widely acknowledged as being at the forefront of the street food trend. In fact, South American cuisine, as a whole, is set to gain signifi cantly increased exposure as a result of these major events.”

A twist on traditionConor says that traditional ingredients are now being adapted to suit other areas within food service. Bacon, for example, once only associated with the sandwich, is now added to many different products from toppings on pizza and burgers to pasta, salads, ready meals and sauces. Conor explains that bacon gives a magical “umami fl avour-enhancing element to anything it is added to. The naturally occurring glutamate allows maximum fl avour delivery.”

New opportunitiesDawn Farms takes a proactive approach to new product development

and sees itself as a leader in quick service food innovation. It is constantly looking at new opportunities and developing menu ideas that meet changing consumer demands. As the leading B2B manufacturer in its chosen markets, the company sees increasing cross-fertilisation in the burger, sandwich and pizza segments. Much of this comes from the growing demand from younger consumers for protein-rich products. Dawn Farms says its products deliver consistently on quality, fl avour and performance, and adds that there is increasing recognition of the hassle-free nature of fully-cooked products – reduced prep work, post-cook cleaning – that are more in line with the growing body of health and safety regulations that surround cooking in travel and leisure locations.

NECTARConor leads a team of over 20 culinary experts, food science graduates and technologists who operate from a state-of-the-art Science and Innovation Centre in Naas, which is purpose-built to host customer visits. (The team love food and have given a name to their in-house stage-gate product development process called NECTAR, which stands for Need, Explore, Create, Test, Action, and Review.)

The real dealCONOR CAHILL, DAWN FARM FOODS, TELLS THAT, IN 2014,

CONSUMERS ARE LOOKING FOR REAL, AUTHENTIC FOOD EXPERIENCES.

www.irishfoodmagazine.comwww.irishfoodmagazine.com INDUSTRY


Issue 4 201442

Meat@Gateways, Teagasc’s fi fth Food Innovation Gateways event, highlighted opportunities for

Ireland’s meat category and discussed the role of science and technology in helping the sector to become more competitive, advanced and sustainable.

Speaking at the event, Tom Hayes, Minister of State at the Department of Agriculture, Food and the Marine, acknowledged the important work of Teagasc, University College Cork, and Enterprise Ireland, which “plays an essential part in keeping the Irish meat processing industry at the forefront of technical innovation in product development; new meat processing technologies for effi ciency and safety; and underpins our efforts to maintain and increase our export markets.”Meat@Gateways included 24 exhibits and industry displays that showcased the variety of research being undertaken in Ireland’s meat industry. Expertise included areas such as: genetics for improving meat quality; quantifi cation of gaseous emissions from grass-fed beef cattle; the importance of meat in the diet; extending the shelf life of meat products; ensuring meat eating quality; and novel smart packaging solutions. Declan Troy, head of Teagasc’s Food Technology Transfer Offi ce described the exhibition as “a unique display of Irish capability in meat technology and an opportunity to engage with the researchers with a view of exploiting some new business opportunities and new product opportunities.”

Beyond the dinner plateMichael Uetz, Principal of US company Midan Marketing, told the conference that meat protein would remain a primary focus in the make-up of meals for a long time to come. However, he said, it was now time for the industry to look beyond traditional cuts of meat for potential growth areas, such as meat ingredients. Teagasc researchers are currently exploring such opportunities, including examining the potential of recovering value from meat processing waste streams. Teagasc says the recovery of high-value functional co-products from meat processing streams represents an area of signifi cant opportunity to enhance the economic performance and improve the environmental impact of the Irish meat industry. The functional co-products that Teagasc refers to include: proteins, peptides, lipids etc, which, it says, posses strong gelation or

emulsifi cation properties, important palatability characteristics or bioactive properties of relevance to health or nutrition. Michael also spoke about changing consumer priorities in the US. He explained that the growing trend towards healthy living was leading to increased consumer awareness of natural or organic products. He said that, although consumers do not fully understand the meaning of ‘natural’ or

‘organic’, in terms of

production, they associate it with being

healthy. “The kind of product that you raise in this country is

what people are looking for.” He said Ireland’s grass-fed system has huge

potential to fi ll the rising trend towards naturally produced meat products. Furthermore, referencing research in the US, which found that 67 per cent of consumers think its important to understand how their food is produced, Michael said there was a need for greater transparency in the agri-food industry. He added, that Ireland’s farm-to-fork traceability would help communicate the message about sourcing to consumers, which he described as a critical factor for the future.

Science and research – ingredients for successIRELAND’S MEAT INDUSTRY CAN ADD VALUE THROUGH RESEARCH AND SCIENCE, ACCORDING TO INDUSTRY EXPERTS.

INDUSTRY www.irishfoodmagazine.com

the meaning of


Issue 4 2014


43

INDUSTRY

Research and innovationDuring his keynote address, the Minister of State highlighted the important role that scientifi c research has played, and will continue to play, in the success of the Irish agri-food industry. “In Food Harvest 2020, we have placed a strong emphasis on scientifi c research, development and innovation at both the production/farmer and the food processing level.” He described the recent introduction of a Beef Genomic Scheme, which utilises cutting-edge science developed by Teagasc, in collaboration with the Irish Cattle Breeding Federation (ICBF), as a particularly important innovation. “The use of genomics in dairy animals has helped transform cattle breeding in that sector, as well as delivering tangible gains for effi cient farmers. Introducing

this technology for the suckler sector will help to

improve the genetic

quality of the national beef herd and to increase productivity and profi tability at farm level.”He added that the Department of Agriculture, Food and the Marine is committed to supporting agri-food research, highlighting its investment of €26 million in 2013, which has funded over 51 research projects. “One aspect that I am personally interested is the eating quality of meat. I believe the quality of our meats rank highly in any international comparisons, however many factors, both on-farm and post slaughter, affect the eating quality of meat. Therefore, as a substantial exporter of our meats, I am pleased to note that some of our recent research projects are investigating any potential improvements in this regard, with such

projects focused on pork and lamb.”In his presentation to delegates, Chris Calkins, Professor of Animal Science, University of Nebraska, provided evidence of a US research initiative that identifi ed new cuts of beef that were previously minced or sold at the lower end of the value scale. It is estimated that these new cuts have increased the value of beef by over $1 billion per annum.

Innovation partnershipsJens Bleiel, CEO Food for Health

Ireland (FHI), spoke about FHI, which is a unique programme in

Ireland that brings together academia and fi ve key

Irish dairy companies to investigate, through

scientifi c research, the potential of

dairy ingredients in the

functional foods arena.

Jens

explained that, initially, there was some scepticism among the participating companies around the issue of sharing resources and intellectual property. However, he said, they began to understand the value of combining their resources at a pre-competitive stage in order to advance overall research and consumer needs. FHI is part funded by its industry partners, together with Enterprise Ireland. Jens says the industry investment is essential because it ensures the companies’ continued commitment to the project. “They want to get a return for their investment, so it optimises their involvement.” Jens encouraged similar collaborative research and innovation in Ireland’s meat industry.

Technology transfer The Teagasc Food Gateways Programme is central to the Teagasc Food Technology Transfer Strategy, which aims to support, facilitate and enhance the transfer of research outputs, including intellectual property, capabilities and related information between Teagasc and the business community and other stakeholders, in order to promote the exploitation of its research. At its food research facilities in Ireland, Teagasc has ameliorated specifi c expertise, capabilities, know-how and specialised infrastructure that industry can access through various means, as well as available technologies developed by Teagasc and partners. At Meat@Gateways, a special edition of Teagasc’s Technology Portfolio was launched describing the current technologies, capabilities, services and expertise that are available through Teagasc and UCC for the meat industry.Teagasc Director, Professor Gerry Boyle said: “The industry has embraced the latest technologies to ensure safety and quality, but what is now needed is to embrace opportunities that exist through science-based innovation so that the industry can become more competitive, maintain and grow markets, and meet the latest consumer trends on the global stage.”

which is a unique programme in

improve the

Pictured at Meat@Gateways event are: Ciara McDonagh, Teagasc, Ashtown; Teagasc Director, Professor Gerry Boyle;

Minister of State at the Department of Agriculture, Food and the Marine, Tom Hayes; and Declan Troy, Head of the Teagasc

Food Technology Transfer O� ce, Ashtown.


Demand for and the popularity of the whisky category is going from strength to strength throughout the world.

Bord Bia’s report: The Future of Irish Whiskey, which was conducted by The Futures Company, outlines the overall growth of the whisky* category and, in particular, the emerging opportunities for the Irish whiskey* category and Irish distillers.

Domestic successIreland, in particular, continues to be a world leader in the production of Irish whiskey. The Future of Irish Whiskey report, includes fi gures from International Wines and Spirits Record (IWSR) Data, which shows that global consumption of Irish whiskey increased by 10.5 per cent from 2011 to 2012, compared to an increase of just 2.8 per cent across the entire whisky category.Irish whiskey is expanding from a relativity small base and accounts for 2 per cent of global whisky volume, compared to 26 per cent from Scottish whisky. There is signifi cant potential to expand in this area by those willing to invest.Overall, the report says, the whiskey industry in Ireland looks to be particularly healthy. It t projects that Irish whiskey will have the highest volume growth rates of global spirits by 2016.

Industry expansionJameson, one of the world’s most recognisable whiskey brands, has played a huge role in the ongoing success

Issue 4 201444

TRENDS

The future of Irish whiskey and global whisky ALAN CONWAY OUTLINES THE KEY

MESSAGES FROM A RECENT BORD BIA REPORT: THE FUTURE OF IRISH WHISKEY


* This article refers to ‘whiskey’ when indicating produce made in Ireland, and ‘whisky’ for all other varieties produced outside of Ireland, as well as when referring to the category as a whole.


TRENDS

of the Irish category. It is currently Ireland’s strongest export brand of whiskey, accounting for 3.4 million of the five million cases of whiskey that are exported annually.Commenting on its continued success, Hannah O’Leary, brand ambassador for Jameson says: “Jameson is indisputably the engine of the Irish whiskey train, with 76 per cent of whiskey sales in the US. That represents about 86 per cent of growth in the last number of years.”While established brands like Jameson continue to be successful, there is also cause for optimism among the independent producers, which have breathed new life into the sector by creating new and innovative varieties of Irish whiskey.The category has witnessed significant investment in recent years. There are currently four existing distilleries in Ireland, which have seen expansion, and there are plans for another 15 distilleries in the pipeline.The sector recently came together to launch the Irish Whiskey Association, which brings together new entrants and existing companies to promote Irish whiskey. It is also intended that the new organisation will work together to ensure that quality standards for the category are maintained and that the product is given vital protection going forward.

Global strengthDespite the global economic crisis, the spirit industry has remained strong, and has actually shown some strong growth in terms of volume and value over the last few years.Figures released by Canadean Consulting show that global brandy and whisky sales increased in volume by 7.1 per cent and 2.8 per cent respectively from 2011 to 2012, compared to global beer consumption, which increased by less than 2 per cent, while wine remained unchanged.

In fact, whisky has been winning against other players in the sprit category globally. This is a trend that is expected to continue, as total whisky volume growth will outpace key dark and white spirits such as rum, tequila and gin to 2016. Indeed, amidst the markets worst affected by the recent financial crisis, whisky has gained an almost recession-proof status. According to IWSR Data, 2013, the 2.8 per cent growth in global consumption of whisky, from 2011 to 2012, compares to a 0. 5 per cent decline in consumption for rum and 0.3 per cent growth for vodka.One of the main contributing factors to the rise of whisky sales, according to the report, is the expansion of the middle-class consumer in emerging markets, whose increase demand for fine whisky is leading the global demand for the product.There is also a rising trend, in established spirit markets, among wealthier consumers to source interesting and new premium products. According to figures released by the IWSR, volume in the premium spirits category increased by 5.5 per cent from 2011 to 2012, while standard spirits only grew by 1.4 per cent.

New boundariesA more sophisticated and demanding consumer is emerging in mature spirit markets, as well as in established whisky markets.South Korea continues to be the world leader in the consumption of super-premium whiskey, a position that it has held for the last 12 years. The US also continues to rank as one of the world leaders in whiskey consumption.Steve Uri, a US whiskey expert, believes that the trend of people buying high-end whiskey is something that will sustain itself for a number of years. “It seems to me that there is

almost a insatiable demand for high-quality whiskey and I don’t see that changing in the next five to 10 years.” Not only has there been an increase in consumption by the ‘traditional’ whisky drinking countries, but there has also been a considerable rise in countries that are beginning to take their whiskey production more seriously. Japan, Croatia, Spain, Sweden, Taiwan, Romania, New Zealand and China, are just some of the countries that are challenging the established whiskey producing nations.These new competitors are also stretching the value spectrum for consumers. As more countries are producing whisky, there are more options and choices available for consumers. According to Brendan Buckley, Innovation And Category Development Manager for Pernod Ricard, this is a good thing for the industry. “We have seen a democratisation of whisky in the last number of years. It has led to an image shift from being seen as an ‘old man’s’ drink and has recruited many younger drinkers. Implicit sophistication, which was once off-putting, is now quite appealing.”Changing attitudes have also helped to boost the whiskey industry in the last number of years. As consumers in established drinking markets become more knowledgeable about the category, they are demanding more complex and sophisticated propositions and taste profiles.For example, according to figures from an Ipsos & Neilsen 2009- Present report, 88 per cent of consumers now consider spirits an affordable luxury. These figures are pushing producers into offering more premium and super-premium whisky to their customers.

Issue 4 2014 45



Issue 4 2014


46 Issue 4 2014


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SPOTLIGHT ON

Marketplace International 2012 saw Irish food and drinks companies double Bord Bia targets of €15 million in new

business. In the 12 months following the event, €30 million in new contracts was achieved. Marketplace International 2015, according to Tara McCarthy, Director of Bord Bia’s Food and Beverage Division, is a signifi cant step-change for the event. Buoyed by the success of Marketplace International 2012, Bord Bia has doubled the new business target for 2015 and is aiming to, once again, see Irish food and drinks companies achieve €30 million in new business. This is fi ve times the target set by the fi rst Marketplace event that took place in 2004.

In 2015, some 300 buyers will be attending from export markets, as well as 140 national buyers. Commenting on those attending, Tara says: “We are targeting a much stronger quality of buyer from the continent and we have built a very strong awareness of buyers who want to buy from Ireland.”Tara explains that the key success of Marketplace International, to date, has been in writing new business in Ireland, the UK and Europe. However, at Bord Bia’s 2013 Sustainability Conference,

Irish food and drinks companies were successful in writing business with buyers from the Middle East and Asia. With that in mind, Bord Bia has devised a new programme for the event that will see 100 buyers from outside Europe attend as part of a four-day visit to Ireland, with another 200 buyers from the UK and Europe attending the one-day event. “We are capturing what works for Europe at Marketplace International and we are broadening its reach for those non-European markets,” says Tara.For buyers from outside Europe, category-specifi c itineraries are being arranged, which will have Bord Bia’s Origin Green sustainability initiative at their core. The four-day programme will include farm and factory visits that will allow buyers “to touch and feel Origin Green live”. Follow-up, one-to-one, meetings will then be arranged between buyers and producers at Marketplace International. Tara describes the one-to-one meetings as ‘speed-dating’ for business. Each appointment last 25 minutes and Irish companies attending the event could have between fi ve and 10 meetings in the day. She estimates that approximately 3,000 meetings will take place over the course of Marketplace International. Tara says feedback from buyers attending Marketplace International is very positive and confi rms that the event

is a very effi cient use of a buyer’s time. Buyers have said that it allows them to get a complete overview of the Irish food industry in just one day, undertaking up to 10 or 12 meetings with companies, which they have pre-selected, as well as store visits and/or farm and factory tours, if their schedules permits. Ahead of the event, Bord Bia is working with upwards of 150 companies to help them prepare. This includes meetings with Bord Bia market managers who will discuss market-specifi c opportunities and challenges, including market suitability, logistics, etc.Tara explains that the 25-minute time frame is an added challenge for companies that would be used to longer one-to-one discussions. To prepare companies for this, Bord Bia hosts presentation preparation training sessions. “It’s a very different meeting when it’s timed, and it’s even shorter if you are translating, it’s about half the time. So, we need to build it so companies can make a pitch in 7 minutes.”Tara says the target for 2015 is that 50 per cent of the Irish companies attending will have written business within 12 months.

Marketplace International 2015 takes place in the Convention Centre Dublin on Thursday, March 26.

Marketplace International 2015

Spotlight on...

NEW BUSINESS TARGET OF €30 MILLION SET AS MARKETPLACE INTERNATIONAL 2015 BROADENS ITS APPEAL TO NEW MARKETS.


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John Store 210x280 .indd 1 30/01/2013 14:31:08Irish_Food_INT_MRKT_Issue4_2014.indd 47 10/07/2014 09:26

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 fi sh.

Generations of Irish producers have benefi ted 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 fi nd out more visitwww.origingreen.ie

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irish food int mrkt issue4 2014 - irishfood magazine · irish_food_int_mrkt_issue4_2014.indd 1...

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