CONTENTS
international edition 2011
5 eDITORIAl
30 INVESTING IN THE FUTURE
6 TRADe STATISTIcS
8 InDUSTRy newS
14 InTeRvIew
AARON FORDE,
CHIEF EXECUTIVE
CONNACHT GOLD
24
SIMON COVENEY, MINISTER FOR
AGRICUTURE, FOOD AND MARINE
19 MARKeTPlAce
THE HOUR OF DAWN
a food ingredients company
with a global reputation for
quality, dawn farm foods is
also a flagship of irish food
innovation.
21 THE CHEFS’ CHOICE
reports on a
recent trip to ireland by the
french and dutch chapters
of the chefs irish beef club.
IRISHFOOD
31
22 RECIPES
24 FIT FOR A QUEEN
a look at what her majesty
Queen elizabeth ii was
served during the state visit.
26 SUSTAINABLE DEVELOPMENT
38
Glanbia has launched a new
sustainability programme
28 THE STORY OF KERRYGOLD
as ireland’s most famous
dairy brand celebrates
50 years, we look at the
opportunities that lie ahead
for development
42
against the backdrop of
harsh economic times,
sofrimar – an irish seafood
company specialising in high
quality shellfish – is enjoying
phenomenal growth.
32 INNOVATION IN DAIRY
a new dairy innovation
centre in ireland looks set to
further enhance the country’s
export reach.
33 NEW MARKET PENETRATION FOR
IRISH SHELLFISH
two of ireland’s seafood
players are expanding their
presence on the world stage.
42 R&D
CRACKING
THE
CHINESE
DAIRY
MARKET
china is home to 1.3bn
people and is the world’s
fastest growing dairy market.
new research shows that
irish dairy companies are
well positioned to take
advantage of this market.
44 TRenDS
TRENDS FROM THE USA
mike wilson reports on the
latest market trends in the
us.
45 SOUnD BITeS
35 ON THE PATH TOWARDS GROWTH
since the publication of the
pathways for Growth report
last year, real progress has
already been achieved and
the irish food and drink
industry is moving down the
path towards growth at a
rapid pace.
36 LEADING THE WAY
dick lenehan at enterprise
ireland highlights some of
the Government supports in
place that are assisting irish
dairy companies to prepare
for forecasted production
growth.
38 FOcUS
BEVERAGES
ireland was very well
represented at Vinexpo in
bordeaux this June.
here we profile the
companies that exhibited at
the event from ireland and
offer an update on latest
news in the sector.
www.irishfoodmagazine.com
Editor: Miriam Atkins Deputy Editor: Matt O’Keeffe Reporters: Oonagh O’Mahony, Donal Nugent Design: Ciarán Brougham,
Martin Whelan, Barry Sheehan Production: Niall O’Brien, Michael Ryan Financial Director: Mai Markey Deputy Chief Executive:
Rebecca Markey Accounts: Tricia Murtagh Administration: Lynda Gray Chief Executive: David Markey Copyright IFP Media 2011.
No part of this publication may be reproduced in any material form without the express written permission of the publishers. Published by:
IFP Media, 31 Deansgrange Road, Blackrock, County Dublin, Republic of Ireland. T: +353-1-2893305 F: +353-1-2896406
E: [email protected] Web : www.ifpmedia.com www.irishfoodmagazine.com
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EDITORIAL
INTERNATIONAL edition 2011
SECTION
Body Text
The opportunity for growth within the Irish dairy sector
that presents itself, following the decision to abolish
quotas in 2015 cannot be underestimated. Ireland is
gearing up to significantly increase production and
a number of initiatives to ensure that suppliers and
processors are poised to take advantage of this potential
for growth, and remain competitive, are already in place.
On page 36 we look at the some of the efforts underway
by Government to assist this development. Ireland’s
new Minister for Agriculture, Food and Marine - Simon
Coveney - points to the priorities within this sector in this
edition. He also notes the importance, on a broader scale,
of creating a brand for Irish food around the promise
of delivering sustainable, natural, high quailty products.
This, he believes, can be created around the colour green,
which he says Ireland is already associated with and is a
colour that conveys the environmental and sustainable
methods of production that Irish producers want to
communicate to buyer and consumers.
The topic of sustainability has become an important
area for Irish companies, particularly in the meat, dairy
and seafood sectors. In this edition we report on the
launch of a new sustainability programme by Irish
dairy giant Glanbia. In addition, all 32,000 Irish beef
farms participating in the Bord Bia Quality Assurance
Scheme will now be audited on their environmental and
sustainability credentials, thanks to a new initiative by
Bord Bia, involving the Carbon Trust. And in seafood,
aquaculture and organic, farmed seafood is a key area of
growth within the sector.
Elsewhere in this edition, readers will find latest market
research on the Chinese market, news updates from Irish
industry and company profiles of those Irish beverage
companies that exhibited recently at the Vinexpo trade
show in France.
INTERNATIONAL edition 2011 5
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TRADE STATISTICS
Export tradE
The agriculture and food industry plays an important role
in the Irish economy and remains its largest indigenous
sector. Irish food and drink was a major contributor to the
economy’s strong export performance in 2010, with export
sales expanding by 11 per cent to reach €7.9 billion,
according to Bord Bia – Irish Food Board. The increase,
amounting to just over €800 million, was supported by a
more stable consumer environment, reduced exchange rate
pressures, and improved relative competitiveness. It was
also boosted by rising global prices for most agricultural
commodities.
All major categories recorded increases, led by dairy, which
jumped by more than €300 million or 17 per cent. Meat
and livestock exports were almost €200 million higher while
beverage and prepared food exports recorded growth of
€130 million and €100 million respectively. Continental
EU markets account for 34 per cent of the industry’s
total exports of food and drink. In terms of exports to
International markets, it is estimated that 22 per cent of
total exports went outside the EU at a value of €1.74 billion.
Trade was helped by strong performances in beverages,
pigmeat, seafood and dairy. The strongest performing
markets were the Middle East, Russia, Asia, Australia and
Africa.
BEvEragEs
Exports of beverages performed strongly
in 2010 following a very challenging
trade for much of 2009. The return to
more normal trading conditions with
higher volumes recorded across most
key categories helped trade although
there continued to be a strong focus on
value propositions. Overall, exports are
estimated to have increased by 12 per
cent in 2010 to €1.19 billion.
The strongest performing categories were
whiskey, cream liqueur and beer. Whiskey
exports continue to perform strongly
with increased sales to the United States,
Europe and emerging markets such as
Russia, South America and Australia.
Cider exports improved as the year
progressed and the ongoing international
development of cider sales is expected to
boost exports in 2011.
dairy products and
ingrEdiEnts
The value of exports increased by 17 per cent to reach
almost €2.29 billion, helped by stronger prices, higher
production in Ireland and the release of SMP (skimmed
milk powder) and butter from storage. The strongest
performing categories during the year were cheese,
powders and butter. The volume of infant formula
exported showed some decline after a relatively strong
year in 2009 as some Asian markets increased domestic
output, which led to reduced import demand. The
prospects for Irish dairy exports in 2011 remain positive
with demand levels in key markets likely to help price
levels. Irish producers are better placed than most to
withstand higher feed costs, given the predominantly
grass-based form of production.
The Irish dairy sector continues to develop a growing
portfolio of products and markets. This development
will become ever more critical as the ending of dairy
quotas approaches and the volume of dairy products
available to export increases.
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TRADE STATISTICS
MEat and livEstock
The combined value of meat and livestock exports grew
by an estimated 9 per cent to almost €2.44 billion in 2010.
The main growth drivers were increased export revenues for
beef, live animals and pigmeat. The value of beef exports
increased by 8 per cent or more than €110 million in 2010 as
increased export volumes and stable prices helped trade. For
the year, beef exports reached around 6,000 tonnes and were
valued at €1.51 billion. The UK market continued to account
for half of Ireland’s beef exports, although the emphasis on
other European markets continues to grow. In 2010, almost
48 per cent of exports were destined for Continental Europe.
Key markets include France, Italy, the Netherlands and
Scandinavia, which between them account for more than 80
per cent of shipments.
A rise of almost 10 per cent in pigmeat export volumes
coupled with largely unchanged average prices led to the
value of exports rising by 10 per cent to €317 million. Going
forward, stronger output anticipated in Germany, Poland,
the Netherlands and Italy is expected to more than offset
declines in countries such as Denmark, France and the UK. The
value of sheepmeat exports increased by 4 per cent to reach
an estimated €170 million. A drop of 12 per cent in sheep
supplies was more than offset by a strong price increase, which
saw lamb prices rise by 17 per cent. The strength of live cattle
and pig exports boosted the value of livestock exports, with
a rise of 15 per cent, valued at €245 million. The principal
factors driving increased exports were strong demand for Irish
calves within the European veal sector and higher shipments
of weanlings/stores to Italy and Spain.
sEafood
The export market for Irish seafood showed significant
improvement in 2010 as lower supplies across most species
helped boost prices. The value of seafood exports is estimated
to have increased by 18 per cent to an estimated €370 million.
Strong demand for organic salmon across Europe helped Irish
exports in 2010 as around 70 per cent of our production is
organic. This combined with poor growth rates globally during
2009 and a severe decline in Chilean salmon production left a
supply gap in the market. The prospects for 2011 remain positive
with ongoing tight supplies expected in a number of major
species, most notably salmon and oysters.
prEparEd foods
Prepared food manufacturers continued to
face a competitive market environment in 2010
due to a combination of price pressure from
customers and rising input prices. Overall,
export values of products covered under the
prepared foods category increased by an
estimated 8 per cent to almost €1.4 billion.
However, exports of consumer ready products,
principally to the UK, recorded a drop of 6 per
cent. The strongest performing categories
during the year were ready meals, ingredients
for the sandwich sector, bakery and sugar
confectionery.
A strong focus on product development
and expanding the range of customers and
markets served, helped the sector as the year
progressed with a number of new listings
reported across Europe. Improved efficiencies
evident among Irish manufacturers leave them
in a better position to be competitive in key
markets during 2011.
Source: Bord Bia
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INDUSRTY NEWS
irish land chEEsEs scoop prEstigious
Quality awards
Three cheeses, marketed by Dairygold in Germany under the Irish
Land brand, have been awarded gold and silver medals from the
German Agricultural Society (DLG) in recognition of their superior
quality.
Every year over 27,000 foods from Germany and other countries
are tested in the DLG Quality Tests. The “DLG Award Winner”
label is only issued to foods that have been found worthy of it in
sensory testing and that satisfy the DLG’s stringent quality criteria.
These include careful selection of raw materials as well as optimal
processing and preparation.
A gold award was given to the Irish Land Country Cheddar 16
months+ product, while silver awards were presented to Irländer deli
counter 2 kg block product and traditional cheddar grated 150g (resealable pack) product.
Speaking about the awards, Dominic Duffy, Manager Dairygold
Germany, commented: “We have been successfully marketing a
range of Irish cheeses in the German market for the past number
of years. The cheeses have built an established customer base and
continue to grow in popularity. The DLG award is an important
endorsement of the high standard of product and we hope, a prompt
for those who haven’t yet tried our cheeses to taste the difference.”
irish sEafood wEll rEprEsEntEd at EsE
pictured at EsE are (from left): Minster for agriculture, food and the Marine, simon coveney; davy lam, usa incorporated; John Murphy, fastnet seafoods; and Bord Bia chief
Executive, aidan cotter.
Ireland was once again well represented at the 2011 European Seafood Exposition (ESE) in Brussels. ESE is the world’s largest seafood fair
attracting buyers and sellers from over 140 countries around the world and featuring the stands of over 1600 exhibitors, including Ireland. Bord
Bia’s Ireland stand hosted 18 Irish seafood exporters this year.
ESE is one of the most important trade events for the Irish seafood industry during 2011 providing a global reference for Ireland. An increase
of exhibitors on 2010 numbers under the Ireland banner demonstrates the strength of the seafood industry for Ireland. Irish Exhibitors at ESE
represented the full spectrum of species available from the island of Ireland including shellfish, whitefish, pelagics and finfish in a range of
formats including live, chilled, frozen and smoked. The value of Irish seafood exports in 2010 is estimated at €370 million, representing an
increase of 18 per cent on previous year figures. Exports account for approximately 45 per cent of total annual output from the sector.
An estimated 75 per cent of Irish seafood exports are sold in EU markets, with France being the main market for Irish seafood followed by
Spain, the UK and Russia. Markets outside of the EU – in particular Russia – are also of vital importance notably for Ireland’s pelagic fleet
which fishes mainly mackerel, herring and blue whiting.
At the event, Bord Bia also distributed the updated Irish seafood exporters directory featuring profiles of approximately 50 of the leading
seafood exporters from Ireland. The document is available in English, French, Spanish, Italian, Russian and German. For more information
please visit www.bordbia.ie
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INDUSRTY NEWS
MarkEtplacE 2012
Following the success of Bord
Bia’s (the Irish Food Board) trade
development event, Marketplace
Ireland, in 2010, the Irish Food
Board has plans underway to host
Marketplace Ireland 2012. The event
is due to take place on February
7 in the National Convention
Centre, Dublin. Last year over 300
international buyers engaged in
over 3,800 pre-scheduled meetings,
speed dating style, designed to build
new business relationships with
150 leading Irish food and drink
companies. Buyers came from all
over the world, inlcuding markets as
far flung as China. Ten buyers from
China attended in 2010 and Breiffini
Kennedy, Manager at Bord Bia’s
office in China, says that feedback
from these buyers was very positive.
According to Bord Bia significant
business has already been achieved
from the event.
Marketplace 2010 - over 300 international buyers engaged in over 3,800 pre-scheduled meetings with 150 leading irish
food and drink companies
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For more information contact Bord
Bia – www.bordbia.ie
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02/08/2011 12:41:46
Kerry Group, the global ingredients & flavours and consumer foods
group has released its Interim Management Statement for the first
quarter ended March 31, 2011.
Building on the Group’s business development momentum in 2010
– with financial accounts showing an increase in sales revenue of
9.7 per cent to €5 billion last year – strong growth was achieved
throughout the Group’s established and emerging markets. Kerry
continued to achieve good volume growth and a solid financial
performance in the first quarter of 2011, despite the significant
increase in raw material and input costs. Reported revenues
increased by 14.8 per cent and (adjusted for currency and the
impact of acquisitions) like-for-like (LFL) revenue increased by
10.5 per cent. Business volumes grew by 4.1 per cent and pricing/
mix increased by 6.3 per cent reflecting the Group’s cost recovery
programme undertaken in collaboration with customers to offset
input cost inflation.
Business volumes in ingredients & flavours grew by 4.7 per cent
benefiting from Kerry’s integrated technology approach and
end-use-market focus. Despite reduced demand for premium and
indulgence lines in some categories, Kerry continued to benefit from
primary market trends towards clean label offerings, product shelflife extension and demand for enhanced nutritional applications.
The Group’s consumer foods’ business performed satisfactorily
with good brand development in the UK market and a stable brand
performance in the Irish market.
Capital expenditure in 2011 is expected to be higher than in previous
years as the Group continues its investment in its growth and
efficiency programmes.
Kerry Group also announced in July that it is in exclusive
discussions with Cargill’s global flavours business, which may, or
may not result in the Group’s acquisition of Cargill’s global flavours
business. Cargill Flavor Systems has well established international
flavour technology development expertise serving a global customer
base through provision of flavour ingredients and flavour systems
for beverage, dairy, sweet and savoury applications. Through its
network of modern integrated flavour development and application
centres spanning 22 countries in North and South America, Europe,
South Africa and Asia, Cargill Flavor Systems has long-standing
relationships with leading global food and beverage manufacturers.
Commenting on the discussions to acquire Cargill’s global flavour
business, Kerry Group Chief Executive Stan McCarthy said:
“Kerry is a leading global food ingredients and flavours provider
and a leader in development and delivery of consumer preferred
taste solutions. The acquisition of Cargill Flavor Systems would
again advance Kerry’s capability to provide unrivalled innovative
integrated customer solutions across all food and beverage end-usemarkets and extend the Group’s market spread in emerging markets.”
INDUSRTY NEWS
kErry group
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INDUSRTY NEWS
glanBia
Glanbia plc, the global nutritional solutions and cheese Group, has
unveiled financial results for the full year ended January, 1, 2011.
Improved global dairy markets and good demand in key nutritional
markets underpinned an excellent year, according to the Group,
with revenue growth of 18.4 per cent to €1,830.3 million and
operating profit growth of 22.8 per cent to €111.2 million. Dairy
Ingredients Ireland returned to profitability, after a first time loss in
2009. According to the Group, fundamental to the relative stability
in dairy pricing was continued strong demand in Asia, particularly
China, increased demand from Pakistan, India and re-emerging
demand from Russia.
John Moloney, Group Managing Director, said: “Glanbia had
an excellent year with results ahead of expectations. The Group
benefited from strong organic revenue growth in our three
nutritionals’ businesses, a return to profitability in Dairy Ingredients
Ireland and the delivery of our strategic cost reduction programmes
in Ireland. We delivered strong revenue and earnings growth and
our 2010 performance reflects the strength and diversity of our
businesses.
“The Group is well positioned for 2011. Our current expectation
is that the trading environment for 2011 will be broadly positive.
Global dairy markets are expected to remain firm, underpinned by
robust demand, particularly from Asia, and demand-led growth in
key nutritionals sectors. In January we acquired BSN®, a leading
US sports nutrition business, which is an excellent strategic fit with
our Performance Nutrition business. For 2011, given our strong
market positions and growing portfolio, we are forecasting 11 per
cent to 13 per cent growth in adjusted earnings per share, on a
constant currency basis.”
sMall food
BusinEssEs
optiMistic for 2011
Small food businesses in Ireland are continuing to
demonstrate strong growth both on the domestic
and export markets, according to figures released
by Bord Bia – Irish Food Board.
Bord Bia works with over 400 small food
businesses with an annual turnover of some €400
million, representing an increase in value of 7 per
cent per year since 2007. Looking ahead to 2011
the prospects also remain positive. According to
Bord Bia’s recent food industry survey (December
2010) over 70 per cent of small food businesses
viewed the prospects for their business in 2011 as
good or very good. When asked to compare their
prospects to a year earlier, 56 per cent rated them
as better.
When asked the source of business generated
over the last year some 74 per cent increased
business with existing customers, 43 per cent won
back business with former customers, while an
impressive 90 per cent developed business with
new customers. In terms of sales prospects, 65 per
cent had increased their sales forecasts for 2011.
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INDUSRTY NEWS
nEw sustainaBility audits for irish BEEf
January 2011 saw the rollout of a new scheme that aims to prove
the environmental credentials of beef farmers in Ireland, which
will help to cement Ireland’s green reputation. The environmental
performance of all 32,000 farms participating in the Bord Bia
Beef Quality Assurance Scheme will be tracked on an ongoing
basis, with a process of accreditation agreed to the internationally
recognised specification, PAS 2050, in association with The
Carbon Trust in the UK. According to Dan Browne, Chairman,
Bord Bia, this is the first scheme of its type in the world to
incorporate an objective assessment of the carbon footprint and
will allow the industry to continue the process of repositioning
its €1.5 billion in export sales among the high value consumer
markets of Europe.
Aidan Cotter, Chief Executive of Bord Bia, also notes: “Irish beef
exports are virtually exclusively destined for European markets,
with the industry servicing an unparalleled portfolio of retail,
foodservice, and high-end manufacturing customers. More Irish
beef is retailed in more supermarkets and in more countries across
Europe than beef of any other national origin. Securing higher
returns from this marketplace has become an absolute priority for
the industry and strong environmental credentials can significantly
enhance the continued repositioning and differentiation of
Irish beef. The latest Bord Bia initiative to track environmental
attributes and link it to its quality schemes recognises that any new
Brand Ireland umbrella concept must be objectively underpinned if
it is to be seen to deliver on its promise.”
irEland’s food & drink suMMit
The strong growth in Irish food and drink exports, which saw the
value of trade increase by 11 per cent in 2010, has continued to date
in 2011 with exports for the January to May period estimated to have
increased by €400 million, or 13 per cent, to total €3.44 billion.
The new figures were released recently at Bord Bia’s ‘Pathways
for Growth Food & Drink Summit’. According to Bord Bia, the
prospects for the remainder of 2011 remain broadly positive as strong
global demand for dairy and meat products, combined with the first
signs of increased consumer food prices as the global economy
returns to growth, create a positive backdrop for Irish exports. The
value of Irish food and drink exports for 2011 is set to grow by more
than €600 million for the second consecutive year.
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INTERvIEW
gOIng FOR
gOlD
groWing sales in sub-saharan africa for its
innovative fat-filled poWders, While also looking
to increase business in consumer foods in europe
is a focus for connacht gold co-operative, says
chief executive aaron forde.
Having announced strong financial results
for 2010, Connacht Gold Co-op is enjoying
buoyant growth across its wide range of
businesses.
The large, multi-purpose co-operative,
based in Sligo, is engaged in a wide range
of activities including dairy processing,
liquid milk distribution, consumer foods,
feed milling, retail stores, livestock
marketing, and timber sawmilling. The Coop has over 14,000 farmer shareholders
and 30 retail stores throughout Connacht,
Leinster and Donegal.
For 2010, Connacht Gold Co-operative’s
turnover increased by 13 per cent, to
reach €300 million (€264 million in 2009),
with operating profit of just over €2
million reported.
Connacht Gold Chief Executive, Aaron
Forde, said the strong performance
should be viewed against the backdrop
of high unemployment, poor consumer
confidence and difficult credit availability.
“On all key measurables, the company
performed well which demonstrates the
strength and resilience of our business.
The increased turnover reflects volume
growth across all business areas. Sales of
consumer foods expanded significantly.
Retail sales in agribusiness stores grew in
spite of a very challenging environment.
The livestock marts business had a
record year while improved returns on
international dairy markets were passed
back to dairy farmers resulting in a muchneeded boost to incomes,” he said.
With regard to the company’s food
business, nearly 90 per cent of Connacht
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Ir Food International 11.indd 14
Gold’s product is exported in various
forms, and as Aaron explains, 90 per cent
of this is in dairy ingredients with the
remainder in consumer foods. “We are
focused on developing markets for the
anticipated growth in milk production
post 2015 (after quotas are abolished).
We don’t believe those markets will be
found in Europe, where the population is
low and the market is saturated – but our
experience so far has been good in subSaharan Africa.”
The company’s business in this region is
made up predominantly from a relatively
new, innovative product called BeoMilk,
launched last year in partnership with
the Irish Dairy Board. “We have been
developing our business ourselves
directly but also with the Irish Dairy Board,
particularly with a brand called BeoMilk,
which we sell into sub-Saharan Africa. It is a
fat filled milk powder, which uses vegetable
oil rather than butter fat. It offers a good
flavour product that is affordable, which is
key in these developing markets.” Since
the launch of BeoMilk, sales have been
growing steadily, with performance ahead
of target. The product already represents
approximately 30 per cent of the company’s
total dairy exports.
The majority of sales in consumer foods
are within the home market with some
penetration also into the UK. In 2010 sales
increased to €43 million. Connacht Gold
butter brands grew in volume by 23 per
cent and the upward trend has continued
in the early months of 2011. Liquid milk
sales also lifted significantly and Connacht
Gold is now the number two fresh milk
processor on the island of Ireland. Aaron
states that there are plans to grow this
side of the business. “Consumer foods
has been a good business for us and is
one we want to grow, Milk volume is up 30
per cent year-on-year and sales in yellow
fats are up 20 per cent year-on-year. We
hope to continue this organic growth and
we are also looking for new business in
chilled dairy. We want to get considerably
bigger in this area and Europe would be
important there.”
Commenting on the potential for growth
evident in the dairy sector once quotas
are abolished, Aaron says: “We share the
confidence that is around.” He explains
that all those involved in the industry are
gearing up for the increase in production
“There is a lot of financial, operational
and market planning to be done, and
some of these decisions need to be
made right now because of the lead in
time with production plants. But milk
suppliers are being very proactive: I have
seen very good growth this year and I
expect to see continued growth between
now and 2015.” And being Irish, he says,
is a real competitive advantage: “First
and foremost, from a milk point of view,
we have a competitive advantage as
we produce milk off grass. In addition,
Ireland’s image as a clean, green,
sustainable region for food production
is important, but we need to ensure that
we back these claims up with scientific
evidence. This combined gives us a
powerful competitive position.”
www.irishfoodmagazine.com
02/08/2011 12:42:04
300
Leading the Development of Ireland’s
Farming and Food Industry
Teagasc, the Agriculture and Food Development Authority, supports science based
innovation in the agri-food sector and the wider bioeconomy to underpin profitability,
competitiveness and sustainability.
Through Research (food and agriculture) and Knowledge Transfer (education and
advisory) Teagasc delivers five programmes:
Animal and Grassland
Programme
■ Animal and Bioscience
■ Grassland Science
■ Livestock Systems
■ Dairy
■ Beef
■ Sheep
■ Pigs
Crops, Environment and
Land Use Programme
■ Crop Science
■ Environment
■ Horticulture
■ Forestry
Rural Economy and
Development Programme
■ Agri-Food Economics
■ Rural Sustainability
■ Farm Surveys
■ Farm Management
■ Rural Development
Food Programme
■ Food Bioscience
■ Food Safety
■ Food Technology
and Quality
■ Technology Transfer
to Food Companies
Education Programme
■ Further Education
and Training Courses
■ Higher Education
Courses
■ Agriculture
■ Horticulture
■ Equine
Advisory Programme
■ Business and
Technology
■ Environment and
Technology
■ Rural Development
■ Growth and Efficiency
■ Competitiveness
Teagasc Goals:
■
Improve the competitiveness of agriculture, food and the wider bioeconomy
■
Support sustainable farming and the environment
■
Encourage diversification of the rural economy and enhance the quality of
life in rural areas
■
Enhance organisational capability and deliver value for money
www.teagasc.ie
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INTERvIEW
SECTION
A new vOIce
With the agri-food
industry attracting
neW-found attention,
being hailed in
recent times as
the saviour of
ireland’s economy,
a neW minister for
agriculture, food
and marine has been
elected and his vision
for the sector is
not only ambitious
but also, he says,
achievable.
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Ir Food International 11.indd 16
Having taken up the position of Minister
for Agriculture, Food and Marine at one
of the most difficult periods of Ireland’s
economic history, it is not unreasonable
to think that the new Minister had an
extremely difficult job ahead of him.
However, Minister Simon Coveney sees
only opportunity and growth for Ireland’s
largest indigenous industry.
“It’s exciting to be part of the growth
industry in the midst of a recession,
despite the fact that we’re going to have
to face some tough budgetary decisions
as a Government. There’s no reason why
we can’t continue to facilitate growth in
the food sector. I’ve tried to instill a real
sense of positivity as to the potential of
the agri-food industry in Ireland: not just
for farmers but also for processors, for
food companies, and for small artisan
www.irishfoodmagazine.com
02/08/2011 12:42:09
INTERvIEW
food companies as well. I think that prices
that farmers are enjoying at the moment
are evidence of the fact that there is very
strong demand for the food that Irish
farmers are producing both at home and
abroad and in my view that demand will
continue to grow.”
In a country with a population of six
million, which produces enough food to
feed 36 million people, being competitive
on the world stage is crucial. “We export
over 80 per cent of everything we product.
Ireland has to find a home for this food
and this has forced us to be come more
competitive, to target markets with a bit
more intelligence and also to ensure that
we live up to our reputation around the
brand promise of Irish food.
“What’s encouraging is the level
of opportunity that is there. What’s
happening in terms of food markets
outside… a growing demand for food,
prices are strong and supply is strong.
That means that food producers have a
chance to seek out new markets and make
money, as long as they are producing
a good quality product that they can
stand over. That’s the important thing,
as we expand this sector we need to
ensure that we can fulfill what is the Irish
promise around the Irish food brand –
quality, safety, consistency. All of these
things have been hard earned in terms of
the condition in which people produce
food in Ireland: there is a very tight
monitoring element, whether it’s animal
husbandry, whether it’s imputs. A lot of
farmers over the last decade have been
frustrated with the level of bureaucracy
that is now involved in farming but it’s
for good reason. It’s so that we can stand
over everything we produce, we can tell
consumers wherever they are in the world
exactly where their food comes from and
how it is produced. That gives us, in my
view, an advantage in export markets.”
Commenting on the markets of
importance to Ireland, Minister Coveney
points to our closest neighbour, the UK, as
a key destination.
“Our most important market is the UK.
Approximately 40 per cent of our food
exports go to the UK, €3.6 billion last year
of food went to the UK, and €2.7 billion
came from the UK in terms of imports,
so we have a trade relationship with our
closest neighbour. That’s our biggest
market, and even though I don’t expect to
see dramatic growth there in a short space
of time, I think we’ve seen stable, steady
growth and we’ll continue to see that
type of growth.” He adds that it is vital
that we continue to develop and value
the British market, in particular because
many small food companies rely on it as
their main export market. “It’s not difficult
to market Irish food in the UK: British
consumers trust and like Irish products.
From speaking to Bord Bia, many British
consumers view Irish food as local food.
They’re comfortable with buying Irish
product because they know where it
comes from.”
“Jack O’Shea’s runs a meat counter in
Selfridges in London and all of his beef
is Irish – and he can’t sell enough of it!
There is such a high demand. This is a
good example of Irish beef selling well
at the high-end of the market and there
is no reason why that success can’t be
replicated all over the world. We have to
target the premium markets.”
The Minister also points to the
opportunities that exist in Continental
Europe. Continental EU markets account
for 34 per cent of the industry’s total
exports of food and drink. And there
is still huge potential for growth here.
“Germany, for example, imports 400,000
tonnes of beef a year. Ireland only exports
7,000 tonnes to the market. There is a
fantastic opportunity here to increase
sales of Irish beef and replicate the kind
of success Kerrygold butter has enjoyed
in this market. Consumers [in Continental
Europe] are also willing to spend more for
quality beef.”
He also states that there are great inroads
to be made in developing countries, in
particular for the Irish dairy ingredients
sector. “Ireland produces 16 per cent
of the world’s infant formula. This is
because people associate Ireland with
safe food, which is a hugely valuable
reputation to have. There is real potential
to dramatically increase our infant formula
exports to countries such as China.”
Emerging markets such as India and
China he continues are willing to pay
more for product they believe is safer or
more reliable and this assurance comes
with Irish food. In addition, Minister
Coveney notes that a number of small Irish
companies have broken into Continental
European and International markets with
artisan products such as smoked salmon,
cured meats and farmhouse cheeses. The
reason they are winning in these regions,
he says, is because of their high quality,
which is what these consumers are looking
for.
A sector that Minister Coveney is very
vocal about is the seafood sector, which
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02/08/2011 12:42:09
INTERvIEW
SECTION
he believes is underestimated in terms
of the potential for development here.
“I think we are missing the point a bit as
to what is possible around seafood. The
traditional argument is that we don’t have
the quota to grow. A million tonnes of fish
is caught in Irish seas but only 240,000
tonnes is landed in Irish ports and only a
percentage of this is processed in Ireland.
We need to attract foreign fleets to land in
Ireland and to process fish here. This will
totally change the dynamic.” He explains
that this means that a French fishing fleet
for instance can offload the fish relatively
quickly in Ireland after they are caught and
then take the next batch back to France,
saving on fuel.
The other growth area in seafood he says
is aquaculture.
“Irish organic smoked salmon is the
most sought after in the EU. We can get
volumes up by moving salmon farms
offshore rather than having them in
bays that are sensitive in terms of the
environmental point of view.
There are also a lot of entrepreneurs in the
seafood business, who are adding value to
their product and exporting high volumes
frozen or chilled.”
Within the Pathways for Growth report
(see page 35) the creation of an ‘Ireland’
brand for the food industry highlighted.
So how would this be created? “There
are two schools of though here,” explains
the Minister. “The first would be to create
a definitive ‘Ireland’ brand for everyone
to see and the other would be to build
a watermark that represents Ireland on
top of the brands that are already there.
There is no quick fix or cheap solution for
this. Ireland needs a consistent approach
to the delivery quality food for a long
period of time to gain marketshare – and
that’s what we have already been doing.
But we need to put a bit more thought
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into how we reinforce our message. We
need to reinforce what Irish food has
achieved in quality food production.”
He explains that the colour green, which
Ireland is already associated with, could
offer an important branding message, with
connotations around the environment,
sustainability and pure, natural, safe food.
“Most of our product comes from grass
based systems, which I believe, from a
nutrient point of view, offers a healthier
option. Premium, natural, safe traceable,
a responsible approach to husbandry, to
the environment: there are a whole series
of possibilities around branding Irish foods
that provide a promise to consumers
when they buy it. And that has a value: in
some cases that value is a premium price
and in other cases it means that people
choose Ireland rather than importing from
somewhere else.”
Concluding, the Minister points to the
ambitious goals set out in the Food
Harvest 2020* report. He notes that of the
200 or so recommendations contained in
the report, 80 are already being worked
on. At the top of the list, however, is the
dairy sector and the impending growth
of production following the abolition of
quotas in 2015. “The big priorities here
is how to prepare for the end of milk
quotas. We need to upskill farmers to
become even more efficient and increase
output and we need to ensure that
the processing sector is ready for the
increased volume, as well as making sure
we fund new markets to take this increase
in production. Everybody involved in the
dairy food chain in Ireland is planning for
this development and everybody is pulling
in the same direction.”
* Food Harvest 2020 report was launched in
2010 and set out ambitious 10-year growth
targets for the sector.
at a glancE…
Simon Coveney T.D. was appointed
as Minister for Agriculture, Marine
and Food on March 9, 2011. With
a B.Sc. in Agriculture and Land
Management from The Royal
Agriculture College, Gloucestershire,
Minister Coveney was first elected
to the Dáil in 1998 as one of Fine
Gael’s youngest TDs. Since then, he
has held Shadow Ministries in the
following areas: Drugs and Youth
Affairs; Communications, Marine and
Natural Resources; Transport and
the Marine. He was elected to the
European Parliament in 2004 and
was a member of the EPP-ED group.
Minister Coveney chaired the
Fine Gael Policy Development
Committee, prior to the 2011
General Election.
www.irishfoodmagazine.com
02/08/2011 12:42:09
THe HOUR
OF DAwn
As one of Europe’s leading cooked
meat ingredient companies, Dawn Farm
Foods has been at the cutting edge
of innovation for some two decades.
Supplying fully cooked and fermented
meat ingredients to some of the world’s
best known foodservice chains and food
manufacturers, its products are consumed
by millions of consumers every day.
Operating in a highly-competitive market,
Dawn Farm Foods has long understood
the need for innovation as a means of
staying ahead of the curve. In the last
three years, this has meant developing
products that deliver on consumers’ high
expectations of quality but reflecting,
also, their new found price sensitivity.
“Three years of recession and austerity
measures have naturally had a significant
impact on consumer behaviour. However,
the appetite for innovative new products
hasn’t changed, “ John McGrath, Head
of Business Development, Dawn Farm
Foods, explains. “Food manufacturers
and food brands recognise the need
for improved operational effectiveness
and efficiencies to respond to this.
For companies like Dawn Farm Foods,
new product development (NPD) is an
essential weapon in our armoury as we
support our clients and help them hold
their market share and win new business.”
do proJEcts right, do thE
right proJEcts
For a food business operating in a highly
competitive area, innovation isn’t just
about coming up with new ideas but the
process of transferring these ideas into
successful goods and services. There are
three key areas that most of Dawn Farm
MARKETPLACE
a food ingredients company With a
global reputation for quality, daWn
farm foods is also a flagship of irish
food innovation. john mcgrath
talks to IRISHFOOD
Foods’ customers in foodservice and
manufacturing are familiar with: product
improvement (i.e., new flavours, improved
recipes); process/packaging improvement
( i.e., changes in the packaging material
to ensure longer shelf-life etc.); and
product innovation (an entirely new
product consumer haven’t seen before).
“For a food company, innovation is an
exciting field to be involved in but also
a very challenging one,” John says.
“Companies that don’t invest run the risk
of being left behind. However, those who
do, know that this is an area littered with,
often very expensive, failures.” To ensure
company resources are invested wisely,
a company needs to commit to two key
things, he says. Firstly, that it is accessing
the right consumer and market insights
and, secondly that, it has the processes
and systems in place to ensure the right
INTERNATIONAL edition 2011 19
Ir Food International 11.indd 19
02/08/2011 12:42:10
MARKETPLACE
the six consumer
lifestyle trends:
fluid lives
“i want to stay in control of my busy life
and make sure that i am at my best for
whatever the day presents”
making the most of life
“i need to balance the stresses in my
everyday life with experiences that are
fun and fulfilling”
sustainable lives
“i would like products that create
less negative impact on the world; i
want choices that make me feel good
without harming my wallet”
the quest for health and wellness
“i want to be in control of my health
and wellness, to manage or improve it
through making better choices”
consumers in control
“i like to pursue better value, to help
maintain my lifestyle and to get the
most from the money i have”
keeping it real
“i am looking for products and brands
that are real and authentic, because
they have stood the test of time
and remained true to their heritage;
they provide me with comfort and
reassurance”
(Source: Bord Bia)
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Ir Food International 11.indd 20
kind of innovation is delivered in the right
way. Dawn Farm Food’s own in-house
NPD system, called NECTAR, has been
designed specifically around the needs of
a meat ingredients company. “Essentially,
the goal is to manage and drive new
product development speedily and
successfully. NECTAR sets out the route
for how we, as a supplier of cooked meat
ingredients, can drive new products from
concept to market.”
consuMEr trEnds
In developing and refining its strategic
approach, Dawn Farm Foods participates
in the Consumer Lifestyle Trends
programme, run by Bord Bia. While the
search for value may be uppermost in
many consumer minds at the moment,
it would be far too simplistic to see this
as their only concern and the Bord Bia
programme aims to get ‘under the skin’
of consumers by identifying the six key
trends that characterise their behaviour
(see panel). By developing concepts
based around these trends, companies
can then anticipate what consumers want
in the future, rather than simply respond
to their current behaviour. “Trends are
useful in helping make sense of what
consumers are really looking for. They also
encourage new ways of looking at things,
and discussions around that can be the
catalyst for new ideas.”
John highlights a recent example of
how understanding trends can support
successful innovation. “One recent product
we have developed using the NECTAR
NPD process is the pepperoni meatball.
This was developed in line with the twin
Consumer Lifestyle Trends of ‘Making the
most of life’ and ‘Keeping it real’. Recent
research suggests that many consumers
are still seeking comfort food to offset the
stresses of everyday life. Others, feeling
braver, are veering towards experimentation
and adventure in their food choices.
The pepperoni meatball addresses
this very desire for experimentation by
‘deconstructing’ two products with real
culinary heritage to create a new, distinctive
and fun menu item.”
NECTAR has allowed Dawn Farm Foods
to innovate in a way that is efficient, agile
and creative. “By combining customer
and market knowledge with our skills in
meat technology, product development
and creative innovation we have created
market-leading products that not only
address the increasingly sophisticated
needs of today’s consumer but highlight
our value to clients”.
With the demand for food increasing in
tandem with world’s surging population
growth, the future is bright for companies
who have the ability to anticipate change
and put the resources in place to grow
from them. “As we pull slowly away from
the recession, it is important not to ‘drive
by the rear view mirror’,” John says. “We
need to be sure of where we are going
before we begin our journey. All of us
who are involved in the Irish food industry
need to stay competitive in the future.
However, this is not about competing
purely on price. In the long run, that is
simply not sustainable. Innovation is key
to delivering value and NECTAR is our
road map for getting there.” Leveraging
technology and consumer insights to
deliver real value to consumers and its
clients, Dawn Farm Foods is an example
of a company growing not just its own
scope and reputation but that of the
entire Irish food industry.
www.irishfoodmagazine.com
02/08/2011 12:42:12
on a recent trip to ireland by the french and dutch chapters of the chefs’
irish beef club, some of the World’s leading michelin star chefs enjoyed a
taste of ireland’s premium food offerings
Created by Bord Bia in 2004, the Chefs
Irish Beef Club is an exclusive European
forum which brings together some
of the world’s leading Michelin Star
chefs to collectively endorse the high
quality of Irish beef by serving it in the
finest restaurants across the Continent.
The Chefs’ Irish Beef Club boasts a
membership of 44 top chefs from the fine
dining restaurants of Belgium, France and
the Netherlands.
Members from both the French and the
Dutch chapters participated in a recent
trip to Ireland to sample some of Ireland’s
best food and also get a closer look at
the farming and production systems in
practice here that help to create the
high quality products that these leading
chefs endorse. As part of the event, two
new chefs from Holland were officially
inaugurated into the Club.
Talking to IRISHFOOD magazine,
Bernadette Byrne at Bord Bia’s Paris
office said: “The visit is an important
opportunity to showcase the best of
food and drink that Ireland has to offer.
It is recognised that testimonials of
our member chefs are matched by the
choices made by international consumers,
who chose our beef as the preferred
choice.
As well as highlighting our excellent beef,
lamb and seafood products, the trip also
allowed us to present some of Ireland’s
finest artisan foods to the chefs, including
innovative charcuterie products and our
famous Irish farmhouse cheeses.”
“It was a wonderful culinary experience
for the chefs and cards were exchanged
between some food companies and the
chefs, as well as arrangements being
put in place for samples to be sent.
The feedback from has been extremely
positive.” As well as dining on the best
of foods, the chefs visited a sustainable
beef farm and Connemara hill lamb
farm and took part in a workshop which
offered a more detailed look at Irish beef,
the processing industry and Bord Bia’s
Quality Assurance programmes, which
now includes a sustainability audit (see
page 13 for more). Sustainability was
a key theme of the trip. “The farm we
visited has extremely good credentials in
sustainability, with younger, top quality
animals making excellent use of the rich
grass available.”
“The chefs loved all the food they tastes
and were delighted to see first hand how
passionate the Irish farmers they met were
about what they are doing. It was clear
to see that quality is key for Irish beef
farmers and producers, and the chefs were
very interested to see that, in spite of the
recession, they are listening to customers
and producing to specific requirements for
different markets.”
In the Netherlands, Bord Bia has also
recently launched the third edition of the
Chefs’ Irish Beef Club recipe magazine
‘Mooi & Mals’. During a BBQ press event
held in de Bokkedoorns, Michelin star chef
and host Lucas Rive together with Ralph de
Kok, Dutch Barbeque champion, and Joop
Kaldenberg, master butcher, collectively
endorsed and supported the recipe theme
‘Beef up the Barbeque’. Some 650,000
copies of the booklet were distributed
to Dutch consumers through key lifestyle
magazines and at Weber Grill Academy’s.
MARKETPLACE
the chefs’ choice
According to Bord Bia, since 2008, a total
of over 3.5 million Chefs’ Irish Beef Club
recipe booklets have been circulated in
major lifestyle and cooking magazines in
the Netherlands. Indeed, 74 per cent of
consumers who bought the magazines
recalled the Chefs’ Irish beef Club ‘Mooi
& Mals’ insert and as a result rated Irish
beef as one of the top three origins of beef
worldwide (Source: GFK; while a further 87
per cent said they would try out one of the
Irish beef recipes.
In addition, an Irish beef on-pack
promotion was also rolled out by Bord
Bia in the Netherlands, which offered
consumers a chance to win a free Weber
BBQ. Looking to drive consumers to a
dedicated Irish beef website that was
set up during the promotion, Bord Bia
used QR codes on packs to direct people
to the website in order to enter the
competition. As Declan Fennell, manager
at Bord Bia’s Dutch office, explains:
“The consumer today is much more
media savvy and wants information that
is instant and easily accessible. Using a
smart phone, consumers can very simply
scan the code and be immediately linked
to digital content about the product.”
Declan adds that 1,600 visiters to the site
registered for the competition and of
those, 650 did it using their smart phones.
“What is interesting is that people are not
just using their smart phones to glance at
information but are going a step further
to type in and enter competitions. Using
QR codes shows that we are innovating
and typically these consumers are
younger – and we want to be targeting
these people.”
INTERNATIONAL edition 2011 21
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02/08/2011 12:42:12
MARKETPLACE
MARINATED ENTRECOTE WITH GUINNESS-SAUCE
BBQ TIP
Marinades sometimes contain sugar which burn fast on the
barbecue. Stay near the barbecue and turn the meat regularly.
Main Dish: 4 PEOPLE
Preparation: 1 HOUR
Marniate: 30 MINUTES
COOK: 10 MINUTES
4 Fillet Steaks 2 cm thick
2 tablespoons tomato ketchup
2 cloves crushed garlic
½ tablespoon mustard powder
½ tablespoon chilli powder
½ tablespoon brown sugar
Freshly ground black pepper
2 tablespoons olive oil
Contains per person:
2165 kl/515 kcal
41g protein
27g fat
8g saturated fat
27g carbohydrates
2g fibre
•
•
•
•
For the barbecue sauce:
3 tablespoons olive oil
1 chopped onion
2 cloves crushed garlic
1 stick of celery chopped into small cubes
1 tablespoon mustard powder
1 teaspoon ground allspice
1 teaspoon chilli powder
500 ml sieved tomatoes
1 can Guinness beer
2 tablespoons lemon juice
3-4 tablespoons brown sugar
Freshly ground black pepper
Make the barbecue sauce first: heat the olive oil in a pan with a thick base and sauté the onion, garlic and celery gently until glazed.
Stir in mustard powder, allspice and chilli powder and add the tomatoes with the beer, lemon juice and sugar. Bring to the boil and
let the sauce simmer softly for 30-45 minutes into a thick barbecue sauce. Flavour with salt and pepper and allow the sauce to cool.
In a deep dish mix the tomato ketchup with the garlic, mustard powder, chilli powder, sugar and olive oil to a marinade and brush
on the fillet steaks. Let the steaks settle for 30 minutes to reach room temperature.
Grill the steaks on the barbecue for 6-8 minutes until brown. They can be pink on the inside. Turn half way.
Serve the steaks (in slices) with the barbecue sauce.
WINE TIP
Guinness gives the meat and the sauce a rich, sweet flavour. A full, firm red wine full of ripe fruit would be ideal.
SALAD OF FENNEL, GREEN BEANS AND OLIVES
Side dish for Steak with Guinness sauce – 4 people
Cook 250g of green beans in salted water until tender. Rinse the beans in a sieve with cool water and allow to drain. Half a fennel and
cut the halves into thin slices.
Beat the juice and rind of ½ an orange, 1 tablespoon wine vinegar, 2 teaspoon mustard, 5-6 tablespoons olive oil into a dressing and
season with salt and pepper. Mix in 2 tablespoons of chives chopped into pieces of 1 cm.
Mix the fennel slices through the dressing and mix in the green beans, 75g rocket and 100 g of small taggia olives.
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INTERNATIONAL edition 2011
Ir Food International 11.indd 22
www.irishfoodmagazine.com
02/08/2011 12:42:18
MARKETPLACE
TOP 10 BBQ TIPS
LAMB CHOPS WITH
STEAMED GARLIC
SAUCE
BBQ TIP
Ensure the barbecue
is nice and hot before
cooking your food. For
lamb chops put the grill
close to the heat, 5-10 cm
above the fire.
GOOD PREPARATION IS HALF THE WORK!
Do you have all the equipment you need?
Before you begin read these top 10 tips.
1.
before cooking.
2.
Contains per person:
2415 kl/575 kcal
24g protein
46g fat
13g saturated fat
16g carbohydrates
1g fibre
•
•
•
•
Mix 2 tablespoons of lemon juice, 3 tablespoons of olive oil and
pepper into the lamb chops. Allow to settle for 30 minutes to
reach room temperature.
Wrap the garlic cloves in aluminium foil and steam on the
barbecue or in an oven at 200 deg C for 25 minutes.
Remove the cloves of garlic and crush between thumb and
index finger put into a blender. Add the bread crumbs with 1
tablespoon of lemon juice, 2-3 tablespoons of oil. Blend into a
smooth sauce. Mix in the thyme and season the sauce with salt
and pepper.
Grill the lamb chops on the barbecue for 4-6 minutes until
brown. They can be pink on the inside. Serve the lamb chops
with the garlic sauce.
Ensure the barbecue is hot enough before
putting your dish on the grill. The correct
temperature is dependent on the dish you
Main Dish: 4 people
Marniate: 30 minutes
Preparation: 20 minutes
8 lamb chops
Freshly ground black
pepper
Juice of ½ a lemon
100 ml olive oil with herbs
2 Cloves of garlic
2 slices of white bread,
crumbled
1 tablespoon fresh thyme leaves
Aluminium foil
Let the meat come to room temperature
are preparing.
3.
If you cover the dish in oil, it will cook
evenly and not stick to the grill. Cover the
dish in oil, not the grill itself.
4.
Marinades sometimes contain sugar and it
burns quickly on the barbecue. Stay near
the barbecue and regularly turn the meat.
5.
Never prick the meat unnecessarily.
6.
Use tongs to turn the meat or the
vegetables.
7.
Remove any burnt pieces of the dish
before serving.
8.
Never place cooked food onto dishes or
plates where raw meat has previously
been.
9.
Let the meat settle for a few minutes when
it has been removed from the barbecue.
This enhances the flavour.
10. Fruit on the barbecue is delicious as a
dessert, possibly combined with a scoop
of vanilla ice cream. Tip: pineapple,
banana, half a peach.
WINE TIP
A rich, spicy, full rose from the Mediterranean regions fits perfectly
with the southern flavour of lamb chops.
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02/08/2011 12:42:25
MARKETPLACE
Fit for a
Queen
the visit of her majesty queen eliZabeth ii to ireland this year Was a
momentous occasion Which not only celebrated a neW chapter in the
relationship betWeen the neighbouring countries, but also served to
highlight the close ties that ireland and britain have in various forms,
including Within the trade of food and drink. here We take a look at What
her majesty queen eliZabeth ii Was served during the state visit.
The historic speech given by Queen
Elizabeth II during her visit to Ireland
in May marked the culmination of the
success of the Peace Process. While
Queen Elizabeth II discussed the
complexity of the two nations’ history
and the importance of forbearance and
conciliation, she also pointed to the
positive ties between Ireland and Britain:
“Together we have much to celebrate:
the ties between our people, the shared
values, and the economic, business and
cultural links that make us so much more
than just neighbours, that make us firm
friends and equal partners.”
Such partnership is clearly evident in the
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Ir Food International 11.indd 24
trade of goods between the countries, in
particular within the agri-food sector. Last
year, Irish exports to Britain amounted to
almost €28bn — 23.5 per cent of total Irish
exports; and Irish food and drink exports
to the UK were valued at €3.4 billion,
accounting for 44 per cent of overall
exports. Ireland is Britain’s fifth largest
trading partner - we buy more British
goods than Brazil, India, China and Russia
combined.
And Her Majesty Queen Elizabeth II and
the Duke of Edinburgh had a chance to
taste some of the best examples of Irish
produce at the State Dinner hosted their
honour in Dublin Castle by the President
and Dr Martin McAleese.
The menu included some Ireland’s most
famous exports: salmon, beef, farmhouse
cheeses and Irish butter. Rib of Slaney
Valley beef was the centrepiece of the
dinner and according to Rory Fanning at
Slaney Foods, the company was delighted
to be called upon to supply the beef
destined for such distinguished dinner
plates. “The premium beef was sourced
from members of the Slaney Herd scheme
and then passed on to our sister company
Kettyle Foods in Co. Fermanagh to
undergo the ‘dry ageing’ process. This
process emphasises the tenderness of the
meat and concentrates its wonderful beef
www.irishfoodmagazine.com
02/08/2011 12:42:29
Cured salmon with
Burren smoked salmon
cream and lemon balm
jelly, horseradish and
wild watercress, Kilkenny
organic cold pressed
rapeseed oil
Rib of Slaney Valley
Beef, ox cheek and tongue
with smoked champ potato
and fried spring cabbage,
new season broad beans and
carrots with pickled and
wild garlic leaf
Carrageen set West Cork
cream with Meath
strawberries,
fresh yoghurt mousse
and soda bread sugar
biscuits,Irish apple
balsamic vinegar meringue
Irish Cheese Plate
flavour. Only then was it ready for Ross
Lewis of Chapter One, the Michelin Star
Chef, awaiting it in Dublin Castle.”
The menu also featured the following quote
from Jonathan Swift’s Gulliver’s Travels...
“I took up twenty waiters in my hand, and
placed them on the table: a hundred more
attended below on the ground, some with
dishes of meat,.. A dish of their meat was a
good mouthful, and a barrel of their liquor
a reasonable draught.
Their mutton yields to ours, but their beef
is excellent. ...My servants were astonished
to see me eat it, bones and all, as in our
country we do the leg of a lark.”
Suppliers
MARKETPLACE
Menu
Smoked salmon
Brigitta Hedda-Curtin, Burren Smokehouse, Lisdoonvarna, Co Clare
Salmon
Clare Island organic salmon, Clare Island, Co Mayo
Lemon balm
Paul Flynn, The Tannery cookery school gardens, Dungarvan, Co Waterford
Organic cold pressed rapeseed oil
Kitty Colchester, Drumeen Farms, Co Kilkenny
Wild watercress, cabbage, carrots, chive flower and garlic leaf
Denis Healy Farms, Co Wicklow
Rib of beef
From a farm in Co Wexford, produced by Kettyle Irish Foods, Drumshaw,
Lisnaskea, Co Fermanagh
Ox cheek and tongue
M & K Butchers, Rathcoole, Co Dublin
Black pudding
McCarthys of Kanturk, Kanturk, Co Cork
Potatoes and spring onions
McNally family farm, Ring Common, Co.Dublin
Butter, milk, cream and crème fraîche
Alan and Valerie Kingston, Glenilen Farm, Drimoleague, Co Cork
Irish apple balsamic vinegar and apples
David Llewellyn, Llewellyn orchard, Lusk, Co Dublin
Strawberries
Pat Clarke, Stamullen, Co Meath
Milk
Cleary family, Glenisk, Tullamore, Co Offaly
Dittys Irish oatmeal biscuits
Robert Ditty, Belfast
Stoneground wholemeal flour
Kells wholemeal, Bennettsbridge, Co Kilkenny
Buttermilk and butter
Cuinneog Ltd Balla, Castlebar, Co Mayo
Kerrygold salted butter and Glenilen unsalted butter.
Irish Cheeses
Glebe Brethan
Produced by David Tiernan in Dunleer, Co Louth.
Hard Comté style cheese made using raw cow’s milk from the Tiernan’s own
herd of Montbéliarde cows.
Cashel Blue
Produced by the Grubb Family in Fethard, Co Tipperary. Semi-soft blue
cheese, made using cow’s milk from their own and selected neighbouring
farms.
Milleens
Produced by the Steele Family in Milleens on the Beara Peninsula, Co
Cork. Semi-soft, washed rind cheese made in a classic Munster style from
pasteurised cow’s milk.
Knockdrinna
Produced by Helen Finnegan in Stoneyford, Co Kilkenny. Semi-firm goat’s
milk cheese in the classic French Tomme style.
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02/08/2011 12:42:35
MARKETPLACE
thE rEcEnt announcEMEnt
of a nEw sustainaBility
prograMME By lEading
dairy playEr glanBia, aiMEd
at furthEr Enhancing thE
on-farM sustainaBility of
its 4,300 irish Milk suppliErs,
is a positivE stEp for
thE irish dairy industry.
IRISHFOOD rEports.
sustainaBlE
dEvElopMEnt
The importance of sustainable food
production cannot be underestimated.
Sustainability is being heavily invested
in by key global players who are taking
a long-term view of the issue. Those
food suppliers who dedicate resources
to the sustainability agenda will reap
the benefits and Irish producers are
keen to do just that.
It is no surprise therefore that it is the
Irish dairy sector which is taking the
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INTERNATIONAL edition 2011
Ir Food International 11.indd 26
lead in this area as the approach to
quality , and indeed sustainability in
the dairy sector is well ahead of other
sectors. The initiative announced by
leading Irish dairy company Glanbia
is a perfect example of this. A new
Sustainability Programme has been
launched by Glanbia, which is being
operated in association with Bord Bia –
it is currently being piloted and will be
rolled out in 2012. The Sustainability
Programme is an extension of the
current Glanbia Dairy Farm Assurance
Scheme, an accredited farm audit
process introduced in 2005, as Jim
Bergin, CEO of Glanbia Ingredients
Ireland, explains: “Our own Dairy
Farm Assurance Scheme was created
in 2005. It is a legal requirement
that farms are audited for hygiene
standards, animal welfare and good
dairy practice, but the assurance
scheme we put in place was more
comprehensive than the basic
www.irishfoodmagazine.com
02/08/2011 12:42:38
The programme has also been designed
in tandem with some of Glanbia’s key
global ingredients customers and Jim
notes the importance of this. “Our
mandate is to build relationships around
innovation and partnership with our
customers, maintaining close working
relationships with blue chip companies
globally. Over the last number of years
these large multinational companies have
appointed key senior executives to work
on sustainable strategies, which serves to
show the importance of this area. There
is a serious amount of work already done
within these companies worldwide. We
have consulted with these people to
understand what they want to achieve and
where they want to go. It makes sense
to collaborate. From an Irish perspective
we are excited about what Ireland can do
compared to what these customers are
looking for and in competition to other
countries.”
Jim says that the programme covers
all elements of sustainability – so what
does this mean? “Firstly, on carbon: we
are engaged in a detailed analysis of
carbon emissions on a representative
sample of our supplier farms. We
have retained independent experts
to undertake this analysis and are
leveraging an internationally accredited
approach. The preliminary results from
this analysis are very encouraging and
augur well for our grass based production
system. This audit will provide us with
a baseline for the carbon emission
element of the Programme.” However,
sustainability is not just about carbon
but also relates to areas such as animal
MARKETPLACE
standard. As an integral part of the
Quality Assurance Programme, audits
were carried out by our dedicated Milk
Advisers and were BRC accredited. There
was an element of sustainability within
this scheme, so the basis was already
there to develop this further.” At farm
level the recently launched Sustainability
Programme will be built on the Bord Bia
auditing infrastructure that is currently in
place as part of its Beef Quality Assurance
Schemes.”
independent expert with international
experience in the area of food safety.
THE ENVIRONMENT
IN EUROPE
Current Bord Bia PERIscope research
indicates that environmental concerns
remain top of mind for continental
consumers, with awareness levels of
the term ‘sustainability’ high across all
markets. Over 95 per cent of French
consumers and 90 per cent of those
surveyed from the Netherlands were
familiar with the term and over half
the consumers in each market agree
environmental issues now influence
and considerably impact their
shopping choices. On average, 57 per
cent of respondents across Europe
are conscious of the environmental
implications of their consumer choices.
welfare, biodiversity, nutrient usage etc.
The Glanbia Sustainability Programme
will incorporate all of these elements.
According to Jim, regardless of current
high performance of our suppliers in all
of these areas, Glanbia will be supporting
continuous improvement by our supplies.
In that context Glanbia will provide
dedicated resources to assist suppliers
improve. Given that in an Irish context
there is a clear alignment between
good commercial farming practice
and sustainability Jim believes that
this approach will be embraced by the
Glanbia supply base.
To advise on the development of the
Programme, Glanbia has established
an Advisory Group, comprised of
representation from milk suppliers,
Bord Bia, Teagasc (The Irish Agriculture
and Food Development Authority),
an international customer a
nongovernmental organisation with
a global reputation in the area of
sustainability along with a leading
Commenting at the launch, Glanbia
Group MD, John Moloney said: “Our
objective is to build an infrastructure
at farm level, which will underpin an
internationally recognised sustainability
accreditation and create a point of
difference for the products we export
from Ireland. As a grass-based dairy
industry we are in a strong position to
build on our naturally advantageous
position. We see this programme as a
process of continuous improvement,
based on what is already a strong
commitment to sustainability. For
example at milk processing level we
already operate an ongoing sustainability
programme, being the first Irish-owned
company to achieve the IS 393 Energy
Management System certification – the
precursor to the EN 16001. And on
farm we also operate a quality farm
programme – the CMI certified, Glanbia
Dairy Farm Assurance Scheme. I am
confident that working with our milk
suppliers – who are among the best
dairy farmers in the world – and with
the expertise of Bord Bia, we are well
positioned to deliver this Sustainability
Programme.”
Concluding, Jim Bergin states: “The
benefits of a sustainable claim means
that we will be able to establish a mark or
accreditation for our produce that comes
from a sustainable source, and that’s
a good thing for farmers, processors,
retailers and consumers. Ireland is viewed
as a source of high quality safe food and
we already have a ‘green’ image and this
is something we can build on. Also, we
are already low carbon users in terms of
milk production in comparison to our
international counterparts. And now we
have a programme that underpins the
efficient use of natural resources in the
production of dairy products. From our
Irish base, Glanbia can offer the world
stage a competitive and sustainable
supply of high quality dairy ingredients,
as well as innovative solutions for today’s
customer.”
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02/08/2011 14:06:19
MARKETPLACE
THe STORy OF
KeRRygOlD
as ireland’s most famous dairy brand celebrates 50 years, We track its
success and examine the opportunities that lie ahead for development
Kerrygold celebrates its 50th birthday
next year. Launched in the UK by the then
Bord Bainne and Tony O’Reilly who, at its
helm, saw the need to move Irish dairy
exports away from commodity markets
and into a value-creating brand. Today,
it’s in over 50 countries around the world
and not just in butter format. Of the 50
countries it’s in, it’s in the top three brand
position for 27 of those countries, be it
butter, cheese or powder.
According to John Jordan, Marketing
Director with the IDB, being in the top
three, or outside it, is relevant to the
retailer and your relationship with the
retailer and, fundamentally, the consumer.
“Germany is our biggest and most
important market and we have a 14.3
percent volume market share and our
number two competitor has just over
4 per cent market share. From our
perspective not only do we have a great
position in terms of volume sold of Irish
butter, but we are a premium priced
butter, with 250g selling for €1.69. This
is against German private label butter
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retailing at €1.15.”
However, he says, butter is a mature
product sector with an older profile
consumer and because of this the IDB
has looked to address this issue. “The
profile of the Kerrygold butter consumer,
in Germany, is an older person, in a
smaller household. Kerrygold is uniquely
associated with Ireland and consumers
relate to the product being pure and
natural with the Irish association evoking
a sense of warmth and heritage. It
has a lot of warmth around it, it’s Irish,
natural and has a lovely heritage to it.
But for younger consumers we needed
something different – their needs are
different. We wanted to bring the
heritage and give them a product that
meets their needs. In 2009 we launched
Kerrygold Extra, which is a tubbed
product with butter and rape seed oil.” It
has done remarkably well, he says, with
year one sales of €20m in Germany. “This
is one of the biggest success stories
we’ve had for a dairy brand launch.”
Outside of Germany, he says the IDB has
developed other businesses, including
building itself up to be the number one
imported butter in the US – a market
that has been growing at 15 per cent
per annum for the past 10 years. “This
is a very exciting market for us. It’s a
premium where Kerrygold is targeted at
the “Foodie”. He also states that the IDB
has been very strict about remaining true
to its Irish roots. “If a product anywhere in
the world has a Kerrygold brand on it, it
is Irish and made with Irish milk. We have
stuck to that policy through the years.”
Markets, he says, with potential include
Africa, Russia and China, which is
probably the most high profile ‘new’
market out there. “These markets are at
different stages of evolution and there is
money in these markets.” The ingredients
sector, he says, is also big, and in China
it is as important as the consumer side of
things for the IDB at the moment.
“There is huge growth in infant formula
and imported dairy products. Some of
that demand will be filled from Europe
and our ingredients team are working
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02/08/2011 12:42:39
not just about butter.
Kerrygold, he says, has a very strong
position across milk powders. Beo, a
fat-filled powder brand, has been a huge
success for the IDB, with over €10m
worth of sales. “Kerrygold is an umbrella
brand for Irish dairy products, and the
product demand varies with geography.
There is almost no butter in Africa, as
there is no chilled distribution. But they
eat whole milk powder, as a yogurt or
reconstituted drink or just the powder.
We see huge growth there. That market
will evolve from powder to UHT milk,
processed cheese, yogurt and then to
more fresh products. So, establishing our
routes to market now, with non-fresh dairy
products, is of vital importance.”
That, he says, will give the IDB and
Kerrygold a strong brand position and
an appropriate product mix as the
consumer evolves. “Developing those
routes to market with strong distribution
channels and strong understanding of
the consumer will allow us to grow in the
future and not just today.”
MARKETPLACE
with their customers on value-added
ingredients for the infant formula sector
in particular.”
Closer to home, the sometimes perceived
lack of success of the Kerrygold brand
is based on direct comparison with the
German success story. However, John
says no two markets in Europe are the
same and, for instance, the French market
is extremely nationalistic. “There are
very few imported dairy brands that are
successful in France.” He points to the UK,
where Kerrygold has a strong presence,
and also the IDB’s cheese, Pilgrim’s
Choice, is the number two cheese brand
in the UK. “The UK butter market has
evolved quite differently to other markets,
and in terms of consumption less than 50
per cent of the ‘butter’ market is actually
butter. It’s mainly spreads. In response the
IDB launched a spread there, along with
new innovative products such as a honey
spread, and a low-fat, unsalted butter.”
Kerrygold also has a number 1 brand
position with Regato cheese in Greece, a
product that is used in both salads and
for cooking.
The German success story, he says, is
made easier because of the German
consumer’s opinion of Ireland. “Their
view of Ireland is as a wonderful place
to produce good food. It’s clean, natural,
pure, surrounded by water, has natural
rain, is lush and the German consumer
understands you get good butter and
food products from such ingredients.”
He also cites the fact that Irish butter is
softer, due to the grass-based diet of our
cows, which gives Kerrygold a point of
difference in the market too.
Harvest 2020 outlined the challenges for
the Irish dairy industry, he says, and one
of the main focuses of the IDB is the route
to market for Irish milk from 2015, when
quotas are abolished. “With our new
CEO, Kevin Lane, we have been looking
at our five-year strategic plan, which will
allow us maximise the extra milk from
2015 onwards.”
One continent that the IDB hopes will
yield significant growth is Africa, he says.
“We already have developed a strong
business there, but it’s a large continent
with very different regions. South Africa,
north Africa particularly Egypt, Algeria
and Lybia and then sub-Saharan Africa
are the three divisions for us.” In Algeria,
for instance, the IDB has focused heavily
on routes to market. “We have a good
Kerrygold brand position there, as well
as in the Democratic Republic of the
Congo (DRC) and Angola.” There is more
Kerrygold sold in the DRC than in Ireland
– even if it’s not butter. And Kerrygold is
INTERNATIONAL edition 2011 29
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02/08/2011 12:42:41
MARKETPLACE
investing in
the future
against the backdrop of harsh economic times, sofrimar – an irish
seafood company specialising in high quality shellfish – is enjoying
phenomenal groWth. IRISHFOOD reports
Located in the unspoilt fishing village
of Kilmore Quay, Sofrimar is situated
just minutes from the harbour, enabling
it to bring deliciously fresh seafood to
its customers throughout Europe and
the Far East. Having forged strong
relationships with the local fishing
community for over thirty years, Sofrimar
has access to a diverse range of high
quality shellfish and whitefish species
including scallop, crab, prawns, whelk,
winkles, lobster and razor clams. The
company’s partnerships with Kilmore
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Quay’s day boats, a stone’s throw
from the factory, guarantees optimum
freshness and quick delivery to their
customers in Europe within hours of
the product being landed. Sofrimar
can offer a diverse product range in
various formats including fresh, frozen,
live, cooked, pasteurized and MAP. The
company also has a live lobster holding
facility ensuring continuous supply during
peak periods. Export markets include
France, Spain, Italy, Portugal, South
Korea, Hong Kong Japan and China with
product being sold under the Sofrimar
brand and retail private labels. Both retail
and foodservice channels are targeted
and – according to the company’s new
Shellfish Development Executive, Yohann
Pierard – business is booming. “Turnover
in 2010 grew by 40 per cent and a further
increase of 25 per cent is projected for
2011, currently we are well on track to
achieve this.”
So what does Yohann attribute this rapid
growth to? For 2010, Yohann states that
increases in sales were achieved across all
www.irishfoodmagazine.com
02/08/2011 12:42:42
Whelks and Scallop Meat. With the new
Pasteurisation line, the company can offer
Brown Crab, Crab Claws, Winkles and
Whelks in pasteurised format with a shelf
life of up to 35 days without compromising
product quality or taste.
“We can offer a wider range of product
to our clients now. With the new facility
we are able to offer products in MAP and
pasteurised formats. So while it is the
same product, with existing customers,
it has extended shelf life resulting in a
considerable increase in sales for 2011.
It is very important for us to build up and
reinforce our relationships with existing
clients and to offer products in consumer
friendly packs for their market, this type of
partnership leadings to additional turnover
with existing customers.
But while increased demand in Asia and
new capabilities within the factory have
allowed Sofrimar to grow at an enviable
rate, Yohann concedes that it is the
product itself, and the quality it offers
under the company’s brand promise,
that is the basis for this success. “Our
brand promises a pure, natural seafood
product and we focus on this in all of our
communication. Our location in Kilmore
Quay allows us to process the seafood
within minutes of being landed. With
over ninety fishing vessels landing their
catches at the quay, and at neighbouring
ports along the east coast, we offer a
constant supply of pure, natural seafood.
Thanks to our unique location, we have
access to a diverse range of whitefish and
shellfish species, which we can provide to
our customers in fresh, frozen, cooked,
live, MAP and pasteurised formats. Being
the single point of contact for such a
wide array of seafood has allowed us to
serve customers in all our key markets,
from Europe to Asia. With an excellent
international reputation, we are customer
focused and competitively priced, but if I
had to choose just one advantage we have
it would be our fresh, natural product.”
MARKETPLACE
markets with France and Italy performing
particularly well. Going forward Asia
offers significant growth opportunities
for our shellfish range and with a number
of new markets being targeted. A key
element in the growth has been the
dedication and flexibility shown by the
management and staff.
In 2011, however, he sees the growth
coming predominantly from the company’s
new capabilities, having recently
undertaken a major capital investment
programme with the addition of new
processing and cold storage facilities. The
result of this is an increase of 25 per cent in
its factory area. A key focus of this capital
investment programme was the extension
of shelf life for shellfish products by means
of Modified Atmospheric Packaging (MAP)
and a new Pasteurisation line. Sofrimar
now offers a range of shellfish products
with an extended 12-day shelf life with its
MAP range, which includes Cooked Crab
Claws, Cooked Winkles, Cooked Whole
INTERNATIONAL edition 2011 31
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02/08/2011 12:42:46
MARKETPLACE
pictured at the launch of the irish dairy Board dairy innovation centre located at the teagasc food research centre, Moorepark are vincent Buckley,
chairman, irish dairy Board, kevin lane, cEo, irish dairy Board, simon coveney, Minister for agriculture, food & Marine, professor gerry Boyle,
director, teagasc and dr noel cawley, chairman, teagasc.
innovation in dairy
a neW dairy innovation centre in ireland looks set to further enhance
the country’s export reach Within the dairy and ingredients sector
Evidence within the Irish dairy industry
to drive progress through innovation and
collaborative effort can be seen in the
recent announcement by Teagasc (The
Irish Agriculture and Food Development
Authority) and the Irish Dairy Board (IDB)
regarding the launch of a new Dairy
Innovation Centre based in Cork, Ireland.
Since September 2010 both Teagasc
and the IDB have been working in
partnership to create new products
within the cheese sector, with four new
cheese product concepts currently being
developed. With such success arising
from this collaborative approach, the
relationship is now being formalised
with the establishment of the IDB Dairy
Innovation Centre, at the Teagasc Food
Centre in Moorepark. According to
Teagasc the objective is to develop
market-led product concepts, which
can be manufactured by IDB members
and marketed internationally by the
IDB. The initiative is a response to the
IDB’s medium terms plans to maximise
the expansion opportunities that will be
created for the Irish dairy sector when the
European Union abolishes milk quotas in
2015.
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The end goal for both parties is to
develop a pipeline of consumer products
and value added dairy ingredients
at the new centre. This partnership
is a vital part of the IDB’s strategy to
increase the added value element of Irish
dairy exports, and Teagasc’s strategy
to support innovative research by
commercial Irish food companies. The
programme will have a full time staff of
five people supported by four Teagasc
scientists and by the IDB’s international
marketing and commercial teams.
Commenting on the move, IDB CEO
Kevin Lane said: “The collaboration
is one important pillar of the IDB’s
innovation strategy. We are also
developing our internal capabilities and
working directly with our members in
other specific areas. The initiative is in
response to developing new products
that meet the requirements of consumers
and supports our members as we plan
together to maximise the expansion
opportunities and to add further value,
which will be created following the
abolition of milk quota’s in 2015.”
Teagasc Director, Professor Gerry Boyle
addd: “This is an important initiative
focused on innovative research to meet
the needs of dairy co-ops as they develop
market outlets for the anticipated
increased volume of milk produced in
Ireland post 2015. Teagasc has built up
an expertise in food research and this,
coupled with the pilot plant facilities in
Moorepark Technology Ltd, is providing a
platform for innovation in the dairy sector
by commercial dairy companies like IDB.”
Concluding he said: “We recognise that
we have a responsibility to use the full
the fruits of the investment of taxpayers
resources for the benefit of food
companies located in Ireland.
Annual expenditure on food research
has been about €16 million. Half of that
is funded from non-grant sources. With
40 permanent food researchers here in
Teagasc, we have expertise in terms of
personnel and equipment. We think that’s
immensely valuable.
The IDB provides us unique market
intelligence that we, as a public body,
do not have access to. So it’s a mutually
beneficial partnership. And I do believe
the public private-partnership with the
IDB will allow us to be more innovative
and respond to the needs of customers.”
www.irishfoodmagazine.com
02/08/2011 12:42:46
MARKETPLACE
neW market penetration
for irish shellfish
tWo of ireland’s
seafood players
are expanding their
presence on the
World stage. here
IRISHFOOD reports on
latest developments
for the tWo
companies.
Murphy’s irish sEafood
EntErs russia and thE usa
Award-winning organic seafood producer
Murphy’s Irish Seafood is a sustainable
aquaculture company, which operates
to best environmental practice. The
company currently grows Organic Salmon,
Organic Mussels and Mussels and is
actively developing new areas of interest,
notably seaweed (brown and red) other
bivalve and echinoderms culture. The
company has a modern BRC accredited
seafood processing facility, which meets
all national and international standards,
and holds the worldwide patent for the
production of ‘Individually Quick Frozen
Mussels’.
Murphy’s Irish Seafood supplies products
to North American, Europe and Eastern
Europe as well as Asia.
This year, the company has made real
strides towards expanding their business
in two export destinations in particular –
Russia and the US.
Russia as a key export region and the
company launched in the market this
year. John Murphy, Managing Director,
tells IRISHFOOD magazine that there is
huge potential for organic salmon in
the Russian market. He notes that there
is real interest among certain retailers
and distributors with regard to organic
product and he is keen to tap into this
trend with a premium Irish organic salmon
product.
“Irish products, because of their quality,
are well accepted on the Russian market,
We are currently in discussions with
potential customers in Russia.”
John attended ProdExpo this year with
the intention of creating some business
at the event and, according to him, the
show went very well for the company. In
addition to participating at ProdExpo,
John is also working hand in hand with
Bord Bia (Irish Food Board) to identify
potential customers. “Veronica Miller
– a marketing advisor with Bord Bia
(Irish Food Board) – has worked closely
with our company in selecting suitable
potential importers in Russia to distribute
our seafood products. Veronica, who
speaks fluent Russian, has introduced
our products to the selected companies
and also pre-arranged meeting times
at ProdExpo with these interested
importers.”
Commenting on the challenges in the
market, John explains that there is a lot of
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02/08/2011 12:42:48
MARKETPLACE
bureaucracy to deal with, from licensing
the company to export to Russia to
import licences on the Russian side. “It is
not a short-term plan to serve this market
– you need to be committed to the
long-term goal and I believe the rewards
will justify the commitment. Ireland has
an excellent selection of quality food
products which will satisfy the demands
of the Russian importer and Bord Bia is
there to assist both parties to make this
business happen.”
Secondly, positive developments in the
US have allowed Murphys Irish Seafood
to begin supplying US retailer Wegmans
with Irish organic salmon in March of this
year. This marks a significant step in the
company’s efforts to penetrate the US
market, having only entered it for the
first time last year. In 2010 the company
was sending approximately two tonnes
of fresh salmon a week to the States.
Currently, it is supplying the market with
seven tonnes a week and John sees this
business growing.
Wegmans operates 77 stores in New
York, Pennsylvania, New Jersey, Virginia,
and Maryland, and is scheduled to open
its first New England store later this year
in Northborough, Mass. Murphy’s Irish
organic salmon is selling for $17.99 a
pound, which, according to Wegmans, is
between the price of traditionally farmraised salmon and wild-caught salmon.
The salmon carries European Union
Organic Certification from the Irish
Organic Farmers and Growers Association
(IOFGA).
Talking to IRISHFOOD magazine, Carl P.
Salamone, Vice President of Seafood
at Wegmans, said:ˇWegmans is very
happy with the working relationship we
have with Murphy’s Irish Salmon. The
product has been wonderful and the
communications have been great. Our
customers love this product — we have
had very positive feedback and sales have
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INTERNATIONAL edition 2011
Ir Food International 11.indd 34
been very good. We look forward to other
products from Murphy’s being introduced
to our customers.”
John Murphy confirms that the salmon
has already received rave reviews
and the company is in negotiations
with Wegmans to also supply portioned
organic salmon under the Murphys brand.
“We are currently selling the product
whole and the customer portions it. We
would like to add value to the product by
offering portions and frozen, both
plain and with sauces.”
Having recently launched its organic
mussels range at Biofach in Germany,
John also states that the company intends
to begin selling this new range into both
the German and US markets this year, in
450 gram pack natural – cooked frozen or
cooked chilled.
EMErald MussEls poisEd
for continuEd growth
Established in 2001, Emerald Mussels is
a Private Limited Company involved in
aquaculture. The company employs 10
people and has an overseas offices in
Holland.
The company specialises in Blue Mussel
cultivation and its extensive product
range includes all shellfish – Mussels,
Oysters, Lobsters, Winkles, Crabs, Clams
and Razors.
The product is supplied fresh to European
customers and is sold under the Premier
and Emerald brand in consumer MAP
packs.
Supplying both foodservice and retail
sectors, all sales are generated through
export.
Quality is key for the company alongside
offering continuity of supply. Quality
accreditations/certifications include
EcoPact, ISO 2200 and IQM. Mussels are
cultivated in a sustainable way and are
very high quality. They have a guaranteed
meat weight of more than 20 per cent and
they are at least 40mm in size.
Mussels account for 80 per cent of
production of which 40 per cent goes
to France and 45 per cent to Belgium
and Germany. As Ineke Nijssen at the
company explains, different markets
require different product and Emerald
Mussels is committed to meeting these
requirements: “For example, in France
consumers look for small mussels,
while in Belgium there is a demand for
larger mussels.” Ineke, who is 10 years
working with Emerald Mussels and is
based at the Holland plant, says that she
believes that the Irish product is getting
increasingly popular has a good image
among overseas customers. “When I
first arrived over here Irish mussels were
not perceived as they are today – they
are now seen as a high quality product
throughout Europe and beyond.”
Two markets in particular that Ineke
believes will offer opportunity for growth
in the coming years are the UK and
Russia.
“The UK will become more important
as a market for Emerald Mussels going
forward. Demand for the bigger mussels
is evident in the marketplace and we
hope to grow our business in the UK in
the near future.”
Further afield, Ineke also sees real
potential for development in Russia for
Emerald Mussels’ product range. “There
is a market to attack here. The Eastern
countries are becoming more and more
important. We did some business with
Russia a few years ago and I think there is
scope to grow our sales to this region. We
would be sending live product however,
so it will be very important to get the
logistics right. But we have the capability
to supply the specific demands of this
market very well.”
www.irishfoodmagazine.com
02/08/2011 12:42:48
MARKETPLACE
on the path
toWards groWth
since the publication of the pathWays for groWth report last year, real
progress has already been achieved and the irish food and drink industry
is moving doWn the path toWards groWth at a rapid pace.
In May 2010 Professor David E Bell and
Mary Shelman of Harvard Business School
presented Pathways for Growth at Bord
Bia’s Food and Drink Summit, outlining a
new perspective on areas of growth for the
Irish food and drink industry over the next
three to five years.
The original report stated that: “We can
certainly imagine that in 20 years Ireland
will be the most efficient, most highly
innovative food and drink country in the
world.” However, there are a number of
challenges that need to be tackled in order
to achieve this.
In summary, the report found that the
challenges facing Ireland’s food and drink
industry were as follows:
•
•
•
Ireland needs a successful brand but
its companies are, by and large, too
small.
Ireland needs to innovate but has a
limited number of entrepreneurs
Ireland needs to be efficient but its
production base is too fragmented.
One year on and the progress already
achieved is evident. Commenting at the
launch of the updated report in May
2011, Mary Shelman explained: “The
influence that Pathways for Growth has
had so far has been impressive. A number
of co-opetition (cooperating to become
more competitive on the world stage)
projects have been initiated, including
several pilots supported by Bord Bia. For
example, several non-dairy food ingredient
companies are presenting each others’
products to existing customers — already
leading to new sales. The CEO of a
leading consumer-foods company has
offered to share information on his top 10
customers with other (non-competitive)
food companies. Other co-opetition
projects include a fish cooperative and a
seafood processor working to fill unused
capacity and sell higher-value products,
and a leading Irish dairy exporter
launching a farmhouse cheese under an
existing brand.
“Co-opetition in beef is a challenge due to
overcapacity and historic industry culture
and practice; however, there have been
some steps forward. For example, AIBP
and Kepak introduced a joint program for
farmers designed to keep calves on Irish
farms rather than being shipped live to
other countries. Several processors are
also involved in a project to supply Irish
beef to Germany, a market that has a taste
for grass-fed beef.”
Mary also added that the idea of creating
a ‘Brand Ireland’ has been widely received
as a positive move. Over the past year
Bord Bia has worked with consumers and
retail buyers in six countries to define what
the dimensions of ‘Brand Ireland’ should
be. Another critical step towards ‘Brand
Ireland’, says Mary is the identification of
critical claims and the development of
standards supporting them. Here, progress
is also evident. “In March 2011 Bord Bia
completed the initial stages of a project to
measure the carbon footprint of Irish beef
production. Importantly, the measurement
methodology has been accepted by the
Carbon Trust. This program has now been
extended to track the environmental
performance of all 32,000 members of
the Beef Quality Assurance Scheme
(BQAS). Recognising that carbon is only
one element of sustainability, additional
measures are being developed for areas
such as water and biodiversity.
“While the initial focus has been on beef,
Bord Bia plans to extend this work into
other sectors including dairy, other meats,
grain, and horticulture. This program of
activity will help ensure that Ireland can
credibly demonstrate its sustainability
credentials in the marketplace.”
In conclusion, the Minister for Agriculture,
Food and Marine, Simon Coveney, stated:
“Our exports have increased 11 per cent
from 2009 to €7.8 billion, and this must
grow further to €12 billion by 2020. The
vision of Ireland as a clean, green, high
quality, innovative producer of excellent
food and drink must be sold at home and
abroad. In under a year the Pathways for
Growth report has evolved into a series
of interconnected work streams with
rapid progress recorded in many areas.
It is impressive that more than 60 food
and drink companies have engaged in
innovative co-opetition projects to date.
Furthermore, upon completion of the
second Bord Bia Marketing Fellowship,
in June 2011, a further hundred bespoke
projects will have been undertaken on
behalf of Irish food and drink companies in
a 12-month period.”
Source: Bord Bia
INTERNATIONAL edition 2011 35
Ir Food International 11.indd 35
02/08/2011 12:42:48
MARKETPLACE
Leading the way
the opportunities for the irish
dairy industry, once quotas
are aboLished in 2015, are huge.
with such potentiaL growth
predicted, it is essentiaL that
dairy companies ensure they
are weLL positioned to reap the
benefits. dick Lenehan manager
of the food sector team at
enterprise ireLand* taLks to
IRISHFOOD about some of the
enterprise ireLand’s strategic
actions underway to ensure
this happens.
Ireland’s abundance of natural resources
means that the country has a significant
economic advantage in the production
of milk, due to its temperate climate,
rich land and a relatively sparsely
populated country compared to other
European locations. In addition, a strong
processing sector and growing world
demand for dairy products, gives Ireland
a unique opportunity to capitalise on the
development of its dairy industry.
Following the EU decision to end the milk
quota system by 2015, the opportunity for
the Irish dairy industry to realise its true
potential has arrived. The modern dairy
processing industry that exists today in
Ireland has been developed over the past
20 years enabled by grant supports by the
Irish Government in excess of €98m.
Dairy is the sector that presents the
largest growth opportunity for the Irish
Food Industry: Enterprise Ireland believes
that growth in dairy exports of €1.75
billion from a current level of €2.5 billion
is achievable by 2020. Around 40 per cent
of this growth will come from primary
processing based on a projected 50 per
cent increase in milk supply. However for
Ireland and its dairy industry, the big prize
is the potential to additionally deliver €1b
in value-added products for international
markets. A proportion of that gain will
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INTERNATIONAL Edition 2011
Ir Food International 11.indd 36
be achieved by Ireland winning strategic
investments in Ireland by international
dairy/infant nutritional companies such
as Danone and Abbott Laboratories. The
balance will result from indigenous dairy
companies driving development and
effective international marketing of new
value-added consumer products.
In supporting the drive to achieve this
ambition, Enterprise Ireland is clearly
focused on three enabling and interrelated strategic platforms:
1) Building world-class leadership and
management capabilities within
the industry focused on strategic
objectives, which includes a Food
Leadership 4 Growth initiative;
2) Adoption by industry of operational
excellence through the delivery of
Lean business capabilities; and,
3) Strategic research into the
development of next-generation
market-led products.
Leadership 4 Growth
To address the issue of building worldclass leadership and management
capabilities, Enterprise Ireland has
utilised Government funding to establish
a Leadership 4 Growth programme for
the Irish food industry. This programme
involves working directly with CEOs
within large companies to help them to
realise their international ambition. The
programme core is being delivered by the
IMD business school with three residential
modules on their campus in Lausanne,
Switzerland, along with integrated
support by high-level business coaches
provided by the Irish Management
Institute in Dublin so as to ensure
effective implementation of best practice
across all companies. Dick explains that
it is the enhancement of the strategic
leadership capabilities of ambitious
CEOs/Managing Directors and their
senior managers, which will ultimately
drive and accelerate the expansion of Irish
companies both at home and abroad.
“We want to invest in management and
leadership teams to enable growth in
export markets and create the leaders of
the future.”
“The objective is to develop a cohort
of world-class CEOs: enhancing their
ambition to lead their companies to scale
globally to strengthen the Irish Food
sectors position to meet future market
needs.”
Niamh Cooney, Manager of Client
Development Programmes at
Enterprise Ireland explains that the
recommendations in Food Harvest
www.irishfoodmagazine.com
02/08/2011 14:06:43
The ‘lean’ approach
In the current trading climate – with
economies struggling across the world
and value taking pride of place in the
‘customers’ and ‘consumers’ wish list – the
benefits derived from a ‘lean’ approach
to business cannot be underestimated. A
lean organisation understands customer
value and focuses its key processes to
continuously increase it, eliminating waste
where possible with all actions clearly
aligned with robust strategies.
As Dick explains, tackling efficiencies
within the business is a tried and tested
route that companies must take to
succeed. “Adopting best-practice lean
approaches to their business offers
companies the opportunity to sustain
competitiveness in a constantly changing
world . This requires significant changes
in the way that management teams work
and the skills base required. It is not an
easy journey, and one which will challenge
management teams and organisations
very seriously. However, the gains to be
achieved are well worth the journey. If
companies do not make the journey they
risk gradual decline and potential failure
of their businesses.”
Enterprise Ireland’s suite of Lean support
programmes targeted at the exporting
food industry are tailored for companies
of significant scale (e.g. sales greater
than €100m), second tier companies and
smaller SMEs. “In practical terms, what
we are doing is enabling highly skilled
consultants to get embedded with the
companies. These experts examine all
aspects of the business right through
the whole supply chain, to identify and
implement significant cost savings and
efficiencies. They look at the way raw
material comes into the company, the
production operation, the distribution
chain, and even administration. The aim
is to take costs out and give the company
a very strong platform for growth in the
future.”Dick is keen to explain, however,
that it is not simply about ruthlessly
cutting costs. “Efficiencies are achieved
in a way that does not impede or diminish
the value offer to the customer – in fact it
is about delivering optimum value to ones
customer at lowest cost. The Enterprise
Ireland experience shows strong evidence
of substantial competitiveness gains
in companies that have already taken
on lean practices and culture. The
programme requires a level of upskilling
and a complete change of culture
throughout the company.”
nexT generaTion producTs
No industry can stand still. If an industry
does not take steps to be ahead of the
competition in developing new products
then potential failure or reduced success
is the longer term risk. To ensure that
Ireland’s dairy industry does not fall into
that trap Enterprise Ireland is working on
two levels. One is supporting companies
developing significant R&D units. The
second is seeking to optimise the
combined power of Third level research
capabilities and industry capabilities both
aligned to new market opportunities. An
exciting development in recent years is
the creation of Food for Health Ireland
(FHI), supported by Enterprise Ireland.
FHI is a unique partnership between four
Irish public research organisations and
four major dairy processing companies.
The objective of this joint effort is to
determine how milk ingredients can be
extracted and used to deliver health
benefits for consumers in the areas
of obesity control, immunity, infant
development and healthy ageing.
Researchers at University College Cork;
University College Dublin; Teagasc,
Moorepark Food Research Centre;
and University of Limerick are working
with industry leaders Carbery Group;
Dairygold Food Ingredients Ltd; Glanbia
plc; and Kerry Group plc, to develop new
functional food ingredients and products.
Commenting on the programme, Jens
Bleiel, CEO, says: “FHI unites world-class
science and dairy industry know-how in
one research centre aimed at developing,
manufacturing marketing and selling
nutritional ingredients and functional
food products to improve people’s health
and wellness. This is quite unique in the
world.” Aidan Fitzsimons, Business Unit
Director: Cheese Solutions, Dairygold,
also comments: “Bringing together the
complementary scientific expertise of
different research bodies has provided
true world class scientific capability,
which is essential to compete in the
global marketplace: no research institute
operating in isolation could provide
this. The governance structure carefully
balances scientific and commercial
perspectives, to deliver scientific
excellence focused in commercially
attractive areas. As the research is
pre competitive, conflict between the
industry partners is not an issue. Within
Dairygold’s Innovation and Business
Strategies, FHI feeds our NPD pipeline
with truly novel compounds and concepts
which we could not provide operating on
our own, which we can then integrate into
our products and production processes.
Our customers, particularly those within
the infant formula sector, which is
strategic to us, expect their ingredient
suppliers to come to them with innovative
products and FHI has provided a huge
boost to our capability in this regard,
allowing us to interact with strategic
customers in a way that previously was
not possible.”
MARKETPLACE
2020 pointed to the need to develop
leadership capabilities within the food
and beverage industry in Ireland in order
to remain competitive. “The programme
offers executive education modules as
well as providing participants with a
business adviser to provide one-on-one
mentoring. These advisers can tackle
unique challenges within the individual
companies with the aim of delivering
much faster growth.” Beyond the
training and advice given to CEOs on
the programme, Enterprise Ireland also
organises Insight Days, whereby senior
teams within each company actively
participate in the programme and are
given an understanding of what the
CEO has been learning on the modules
abroad. Niamh explains that these Insight
Days are very interactive and bring the
senior teams together through workshops
and exercises. One of the positive
outcomes already of this initiative, says
Niamh, is that the companies involved
are working together, having developed
a tight peer network through the
programme.
*Enterprise Ireland is the Government
organisation responsible for stimulating and
supporting the development and growth
of the Irish food industry competing on
world markets. The organisation works in
partnership with its sister agency, Bord Bia,
which provides supports to companies in key
markets across the world.
INTERNATIONAL Edition 2011 37
Ir Food International 11.indd 37
02/08/2011 14:06:53
FOCUS SECTOR
vinexpo2011
vinexpo
ireland Was very Well represented at vinexpo in bordeaux this june.
here We profile the companies that exhibited at the event from ireland.
BanshEE spirits irEland/
BanshEE lEgEnd liQuEur
Banshee Legend was officially unveiled
at Vinexpo in Bordeaux in June, and this
entrepreneurial spirit has already charmed
the interest of international buyers.
The company has had previous eight years’
experience in developing award winning
products and have just proven to have
developed yet another winning brand with
Banshee Legend, having just won masters at
the Liqueur masters awards 2011.
The brand was developed by the new Irish
Drinks company Banshee Spirits Ireland, and
this is the first of a new line of drinks to be
developed over the next five years, which will
be highly influenced by intriguing Irish myth.
The Banshee is Ireland’s most powerful and
beautiful female legend and also known as
the queen of the fairies.
Captured in the Irish liqueur is the perfect
harmony of velvet Irish whiskey, with
colourful notes of wild honeysuckle and
herbs.
coolEy distillEry
Cooley Distillery is Ireland’s only Independent
whiskey distillery. Established in 1987
with a vision to revive many of the historic
brands and distilling techniques of Irish
whiskey, Cooley has established a worldwide
reputation for the quality of its whiskey.
Cooley has developed an exciting portfolio of
different whiskeys, from Single Grain whiskeys
to Single Malts and all in-between. These
whiskeys have captured the interest and taste
buds of consumers all over the world.
Cooley’s portfolio of award winning whiskeys
include:
• Kilbeggan Irish whiskey - a blend of grain
and malt whiskey producing a smooth
sweet taste
• Tyrconnell Single Malt - made exclusively
malted barley giving it a balanced fruity
taste
• Connemara Peated Single Malt - reviving
the old tradition of drying malted barley
over peat fires gives this a distinctive
smokey taste
• Greenore Single Grain - made from maize/
corn producing a silky smooth taste
Cooley has worked hard over the last two
decades to develop a worldwide reputation
for the whiskey it produces, which has
resulted in Cooley being named European
Distiller of the Year for the third year running
at the 2010 International Wine and Spirit
Competition Awards.
first irEland spirits
Established in 1993, First Ireland Spirits has
grown every year to
become the largest Irish-owned beverage
alcohol manufacturer in the Republic
of Ireland. The company’s ISO approved
manufacturing plant was purpose built and
is located 100km southwest of Dublin, in the
heart of the Irish countryside.
Founded on the two principles of cost
efficient manufacturing and high quality
products, today, First Ireland Spirits
manufactures Irish cream liqueur for some
of the world’s largest retailers and drinks
companies across four continents.
The company brands include Feeney’s Irish
Cream Liqueur, Irish Knights Irish Country
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Ir Food International 11.indd 38
www.irishfoodmagazine.com
02/08/2011 12:42:54
FOCUS SECTOR
per cent of the whiskey that goes into the
making of The Wild Geese brand has been
matured in single use white-oak bourbon
casks. The whiskey is then distilled using an
extended double distillation process, which
produces a smooth, rich flavour. The optimum
alcohol content for maturation is achieved
without the need to dilute.
The Wild Geese Irish Whiskey brand is
produced and packaged to the highest
standards and is recognised as a super
premium Irish whiskey.
merry and co ltd
Cream, O’Mara’s Irish Country Cream and
O’Casey’s Irish Cream Liqueur.
With over 120 years’ combined experience
in the beverage alcohol business, the First
Ireland management team has built up
quite a reputation for customer service and
innovation. In recent years, First Ireland
Spirits has extended its portfolio to include
the Jive range of premixed cocktails, which
includes Margarita, Pina Colada, and XXX
on the Beach flavours. First Ireland also
developed the world’s first organic cream
liqueur.
Hot IrIsHman
The Irishman company specialises in
producing and building innovative and
authentic Irish spirit brands under the range
known as ‘The Irishman’. The range consists
of Irish whiskey, Irish cream liqueur and Irish
coffee liqueur.
The two key pillars in the whiskey portfolio
are The Irishman 70 and The Irishman
Single Malt. The Irishman Aged Single Malt
is a great 10-year-old Single Malt Whiskey
matured in Bourbon and Sherry Casks. It is
limited in availability to 1,000 cases for each
batch produced, with each bottle numbered
and signed by the founder Bernard Walsh.
The Irishman 70 is truly a unique Irish
Whiskey Blend containing 70 per cent Malt
Whiskey. This is a pot still blend matured
in bourbon casks and of course the classic
Irish trade mark, ‘triple distilled’. If you like
whiskey full of spice and pepper with a
beautiful fruity finish then this is a must
taste.
The Liqueur portfolio not only includes the
unique Hot Irishman Irish Coffee but also a
luxurious Irish cream known as The Irishman
Superior Irish Cream made using premium
Irish whiskey and rich dairy cream.
Robert A. Merry & Co. Limited was established
in 1868. A family-run business and a member
of the Gleeson Group, Merrys cream liqueur
products are made from rich fresh dairy
cream, carefully refined sugar, Irish spirit and
aged Irish whiskey. Exporting to 23 countries
worldwide, international customers include
Netto Foodstores & Thresher Group (England),
Carrefour (France, Belgium, Spain & Greece)
and Groupe Casino (France), Aldi (USA &
Australia), Cost Plus World Market, Sams
Clubs, Target and Publix (USA), Tesco, Metro &
Auchan (Hungary). In 2008 Merrys achieved a
Grade A Level Accredition.
WIld geese & spIrIts
The Wild Geese Irish Whiskey brand offers a
high-end luxury whiskey. Approximately 80
INTERNATIONAL Edition 2011 39
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02/08/2011 14:06:32
FOCUS SECTOR
tErra spirits
Terra is an independent family-owned spirits
and liqueur producer. The company’s plant
was one of the first in the world to produce
cream liqueurs and it was also once owned
and operated by Baileys.
Terra’s cream liqueur offering is sold under the
brand name of ‘Molly’s’ Irish Cream Liqueur.
Molly’s is a traditional quality Irish Cream
Liqueur made with fresh Irish dairy cream,
Irish whiskey, fine Irish spirits and using only
natural chocolate flavouring. The awardwinning product is 17 per cent alcohol and no
preservatives are used in its production. It has
a best taste shelf life of two years. The name
‘Molly’ comes from the mythical Irish muse
that is at the heart of many Celtic poems and
songs. Today, Molly’s is sold in 20 markets
worldwide and Russia is the latest market to
be added to this number.
attEndancE at vinExpo
A new record for attendance from
non-French visitors was set at the 16th
Vinexpo international wine and spirits
exhibition. According to the organisers,
one out of three of these non-French
visitors were Asian. Excluding France,
China has become the country that
Merrys is home to an array of fine cream
liqueurs including Merrys Irish Cream Liqueur,
Butterscotch, White Chocolate, Peaches
& Cream, Strawberry Cream, Cappuccino,
Caramel Cream and Mint Chocolate. The
company also produces wine-based Irish
creams in flavours including: Original, White
Chocolate, Strawberry Cream, Caramel Cream,
Mint Chocolate and Dark Coffee Liqueur.
Merrys also produces Merrys Special Reserve
Irish Whiskey and Single Malt Irish Whiskey.
slanE castlE irish whiskEy
Slane Castle Irish Whiskey has been specially
created for the Conyngham family that,
since 1701, have lived in Slane Castle by the
banks of the mystical river Boyne which flows
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Ir Food International 11.indd 40
beneath the famous Hill of Slane.
This unique Whiskey blend has been distilled
by the nearby Cooley Distillery. It is a well
balanced blend of malt and grain Irish
Whiskey, which has been aged and matured
for at least four years in first filled American
oak barrels that previously matured Bourbon.
In the traditional Irish style, the malt whiskey
is distilled in copper pot stills and no
peated malt is used. Both the malt content
and the type of wood used for maturation
give this product its sweetness and depth of
character.
Slane Castle Whiskey was recently awarded
94/100 in the 2011 Ultimate Spirits Challenge
and a Gold medal at the Spirits Business
Whiskey Masters 2011.
sends the largest number of visitors to
Vinexpo. 2,974 Chinese professionals
attended Vinexpo, which placed China at
the top of the non-French visitors’ table.
Vinexpo recorded 48,122 visitors from
148 countries, up 3.22 per cent compared
to 2009. And after China, the whole of
the rest of Asia followed: Taiwan, up 65%
compared to 2009, Singapore, up 71%,
India, up 26%, Vietnam, up 116%, Malaysia,
up 74%. Europe stood out because of
strong representation from the importing
countries. There were also significant
increases in the numbers of visitors from
Russia, up 27.2%, Ukraine, up 136%, the
United Arab Emirates, up 77.5% and
Turkey, up 20.9%.
www.irishfoodmagazine.com
02/08/2011 12:43:02
FOCUS SECTOR
drinks
update
the irishman in russia
With Russia becoming the fastest
growing export market for Irish whiskey,
some of Ireland’s leading players are
taking advantage of this opportunity,
including Hot Irishman with its Irishman
whiskey brand. Having only begun
to look at the Russian market as a
potential area for sales in 2007, The
Irishman now counts Russia as one of its
top five export destinations. According
to General Manager Bernard Walsh,
Russian consumers have developed
a taste for Irish whiskey and he sees
the market as one that will continue to
grow for his company.
“Typically, most people who drink
whiskey are over 35 years of age – this
was the typical profile of a whiskey
drinker a decade ago and it continues
to be so for Scotch whiskey today.
However, Irish whiskey has successful
reached out
to a younger audience. Irish whiskey is
smoother and naturally fruitier
and sweeter and, therefore, much
easier on the pallet. Irish whiskey is also
(typically) not peated, so it is perfect for
mixing. Now almost 30 per cent of
Irish whiskey drinkers are under the age
of 35. This is possibly the single
biggest shift in the whiskey category
in the past 50 years. And Russia is the
fastest growing market for Irish whiskey
worldwide. Irish whiskey sales in Russia
for the year 2010 were reported to be
approximately at 150,000 cases. That
has grown from 40,000 cases in 2005.”
The Irishman 70 is the company’s
big volume seller. “It is a top quality
whiskey, which is taking on Jameson in
Russia.” Not only is the product itself of
high quality, but the packaging is also
very attractive, Bernard explains: “The
Russian consumer is very conscious
of image – the bottle used for The
Irishman is a heavy premium glass
bottle which helps endorse the status
of the whiskey inside.
Aside from the Irishman 70, Bernard
is also selling a range of whiskeys
under The Irishman brand, as well as
an Irish coffee product and an Irish
cream liqueur. Bernard notes that
between 2005 and 2010, sales if cream
liqueur in Russia have also grown from
111,000 cases to over 230,000. “The
Irish category of cream liqueurs and
whiskeys are really in vogue in Russia.”
Russia he says currently represents
almost nine per cent of the company’s
overall sales, but Bernard notes that
this could easily rise to 20 per cent
within the next five years.
spirit in its class.
Cooley won the top award, the coveted
Double Gold Medal for its Connemara
Cask Strength Peated Single Malt,
Tyrconnell 10 Yr Old Madeira Finish
Single Malt, Tyrconnell 10 Yr Old Port
Finish Single Malt and topped it off
with a Double Gold Medal and Best in
Class for the Michael Collins 10 Yr Old
Single Malt it produces for US importer
Sidney Frank.
In addition, Cooley collected Gold
Medals for its Kilbeggan 15 Yr Old,
its Tyrconnell 10 Yr Old Sherry Finish
Single Malt and for two further
expressions of its Connemara brand.
Jack Teeling, Managing Director of
Cooley Distillery, commented, “This
latest success proves that Cooley is
consistently producing some of the
finest whiskeys in the world today.
These awards will further elevate the
profile of Cooley Distillery in the US,
which is now the largest market for Irish
whiskey in the world and continues to
grow by double digit figures year on
year. In 2010, we doubled our sales
of whiskey to the US and our recent
awards will help us continue this
growth in 2011.”
cooley in us gold rush
Cooley Distillery, Ireland’s only
independent whiskey distillery,
continued its phenomenal strike rate
on the international circuit by claiming
12 gold medals at the San Francisco
World Spirits Competition.
The 11th annual San Francisco World
Spirits Competition brought together
a panel of 33 judges from across the
industry to taste and score a record
number of entries, 1,106 products from
61 countries. The judges awarded
Double Gold, Gold, Silver and Bronze
medals to the participating brands and
special awards to the most outstanding
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R&D
cracking the
chinese dairy market
china is home to 1.3bn people and is the World’s fastest groWing
dairy market. neW research shoWs that irish dairy companies are Well
positioned to take advantage of this market.
China has again increased its support
package to farmers. Under its new
subsidies, which were announced
recently, the Chinese Government is
investing €128m for the purchase of
farm equipment.
The effort in recent years, in China,
has been to increase crop yields and
agricultural productivity to meet the
needs of its ever-increasing population.
Limited world supply of dairy products,
according to Rabobank, will be
challenged this year by increased
consumption of dairy worldwide.
Rabobank also predicts that China
will not reach self-sufficiency in dairy
production for the next number of years.
A recent report by the bank states that
China, in particular, has a structural
deficit that will be difficult to erode in
coming years.
With a population of 1.3bn, China has
attracted a lot of foreign investment and
imports. While dairy has never featured
strongly in the Chinese diet, there has
been a sizeable shift towards dairy
products in recent years as the western
diet becomes more popular, especially in
urban areas.
Recent research, carried out for Bord
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INTERNATIONAL edition 2011
Ir Food International 11.indd 42
Bia, shows that western food products
are considered safer than Chinese, by
the Chinese. The melamine scandal a
number of years ago did not help the
image of Chinese dairy products. The
research also shows that brand is very
important amongst Chinese consumers,
especially those in urban areas, while
imported brands are especially popular.
According to Padraig Brennan, Senior
Business Analyst, Bord Bia, Chinese
consumers care about four things
when it comes to the purchase of dairy
products: safety and hygiene; nutrition;
taste; and affordability. With safety and
hygiene top of their list of desirable
milk attributes, the research shows that
Chinese consumers base their quality
assumptions on the dairy products being
a reputable brand and it being a foreign
or imported brand.
infant forMula
The infant formula market is estimated
in the region of 332,000m tonnes,
according to Bord Bia, and is dominated
by local manufacturers. Its research
shows that the role of doctors and
hospitals in the choice of infant formula,
according to Brennan, is hugely
important. Hospitals and doctors have
traditionally been an influence in the
decision making for infant formula
brands, he says.
He also says that ‘foreign’ brands are
considered to have more expertise in
infant formula than Chinese brands, even
if they are more expensive. The impact
of China’s ‘one child policy’ weighs
heavily on the choices mothers make
about infant formula, he says. Older
consumers who are looking to increase
their dairy intake, Brennan says, do not
come from a strong background of dairy
consumption. The benefits of milk in
the diet, he says, are apparent from the
research, and the health benefits of dairy
are top of this consumer’s list.
Milking it
The criteria Chinese consumers look for
when choosing a branded dairy product,
Brennan says, are based around a few
key areas: word of mouth, prominence of
TV ads, and the brand’s history in China.
While Nestle and Fronterra have entered
the Chinese market through joint
ventures, Abbott and Wyeth both export
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02/08/2011 12:43:03
t
R&D
directly into China. Regardless, Brennan says,
international brands have a strong upper hand
as Chinese consumers view them as superior,
with stricter quality controls than home brands
and advanced processing technology used.
Production location is as important, he says,
as whether the product is imported or not, to
a Chinese consumer. China has had its share
of production quality assurance issues, he
adds, and this has impacted on how Chinese
consumers view the importance of where
the production takes place. Again, if it is
produced or packaged outside of China, it is
consider of higher quality.
Overall, the study shows that the Chinese
consumer views imported dairy products as
being of higher quality. But there are many
countries vying for the Chinese dairy market,
and the Chinese consumer is well aware that
many of the dairy cows in China have been
imported from the Netherlands, while New
Zealand has a strong agricultural image. One
Dutch dairy brand has labeled itself as ‘the
home of the world’s dairy cows’.
Ireland, he says, still has a low awareness level
amongst Chinese people. People know it’s in
or near the UK, but there is some confusion
with Scotland and Ireland. Ireland, he says, has
to focus on key points that are important to
the Chinese consumer, and they are nutrition,
a history of milk production, and credibility.
Last year the Irish Dairy Board announced it
would increase its presence in China. With the
European market close to saturation point on
dairy products, China has growth potential, it
estimates, in the region of 6-8 per cent.
However, China is a market that some
international brands have failed to crack.
World dairy giant Danone, which is the
world’s second largest producer of baby food,
entered the Chinese market twice through
joint ventures, and failed to impact on it,
eventually pulling out of the market. Fonterra,
the New Zealand dairy, has established a
number of farms in China, to supplement its
dairy supply into the country. It’s most recent
move will see it import 3,000 New Zealand
cows onto the farm in China, and plans to
acquire and build a number of farms there.
Irish companies Glanbia and Kerry have
both entered the market in recent years.
Kerry initially invested €20m on a greenfield
site in China, and has made a number
of acquisitions, while Glanbia opened a
nutritionals factory in 2008, and earlier this
year predicted robust demand from Asia.
Ireland, according to Bord Bia, is well placed
to build itself in the Chinese market. “We
have a good portfolio of key dairy powdered
ingredients, and strong capabilities. We have
a good quality reputation and strong R&D and
manufacturing capabilities.”
The Minister for Agriculture, Food
and the Marine, Simon Coveney
welcomed the Chinese Vice Minister
for Agriculture, Mr Niu Dun, to Ireland
in May. The visit was arranged with a
view to develop closer co-operation
between Ireland and the People’s
Republic of China on agriculture,
fisheries and food safety issues.
Commenting on the visit, Minister
Coveney said: “I very much welcome
this opportunity to talk in person
with Minister Niu Dun. It is my strong
belief that enhanced co-operation on
agriculture, fisheries and food safety
between our two countries can be
mutually beneficial.” The Minister
added that “with a population of
over 1.3 billion people and rising,
which is becoming increasingly more
urbanised and affluent, the People’s
Republic of China offers the Irish agri
food and fisheries sector enormous
potential as an export market”.
The Minister pointed out that China
is already a key market for Irish dairy,
pigmeat and seafood products and
that Ireland is recognised by the
Chinese consumer as a source of high
quality food. The focus now must be
to build on and expand these strong
customer relationships to gain a
greater share of the Chinese market
and to work on gaining access for
other agri food products not currently
being exported there.
The focus of the visit concentrated
on food safety, traceability systems
and veterinary controls in Ireland
and included a visit to a seafood
development facility, a beef plant,
a dairy plant and the Backweston
laboratory facilities.
Ireland exported over €107 million
in food, seafood, beverages, forestry
products and wool to China in 2010
in addition to a further €95 million to
Hong Kong, a total of €202 million.
Pictured above (from left) are: Chinese
Vice Minister for Agriculture Mr Niu
DUN and Minister for Agriculture,
Food and Marine Simon Coveney.
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TRENDS
trends from
the usa
mike Wilson reports on the latest market trends in the us.
“hEalth halo:” why pEoplE
think organic is hEalthiEr
New research suggests that the ‘halo
effect’ may apply to the growth in
demand for organic foods. The ‘halo
effect’ is a psychological theory that says
the perception of one trait is influenced
by the perception of other traits of a
person or object. An example would be
judging a good-looking person to be
more intelligent. Research shows that
people tend to consume more calories
at fast-food restaurants claiming to serve
‘healthier’ foods, compared to the amount
they eat at a typical fast food restaurant.
This health halo effect also seems to
apply to certain foods considered by
many to be especially healthy, such as
organic products. Jenny Wan-chen Lee, a
graduate student in Cornell University’s
Dyson School of Applied Economics and
Management, tested the question by
conducting a double-blind, controlled
trial in which she asked 144 subjects at a
local mall to compare what they thought
were conventionally and organically
produced chocolate sandwich cookies,
plain yogurt, and potato crisps. While the
products were separated and divided into
‘organic’ and ‘regular’ by labels, all of the
products were in fact organic. Participants
were then asked to rate each food for 10
attributes including taste and perception
of fat content. She also asked them to
estimate the number of calories in each
item and how much they were willing to
pay. The subjects reported preferring
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almost all of the taste characteristics
of the organically-labeled foods, even
though they were actually identical to
their conventionally-labeled counterparts.
The foods labeled ‘organic’ were also
perceived to be significantly lower in
calories and evoked a higher price tag.
In addition, foods with the ‘organic’
label were perceived as lower in fat and
higher in fiber. Overall, crisps and cookies
labeled organic were considered to be
more nutritious than their ‘non-organic’
counterparts.
top packagEd
foods of 2010
SymphonyIRI, a global consulting
and marketing firm, revealed its most
successful food and beverage and
non-foods consumer packaged goods
brands of 2010 in its annual New Product
Pacesetters report.
In 2010, the most successful food and
beverage products were those that
focused on home-based eating and
its rituals. According to the report,
innovation around breakfast solutions and
salty snacks accelerated, representing
more than half of new food dollars; juices,
milks and waters, and coffee and tea
beverage segments demonstrated similar
strength, outperforming trends witnessed
during the past several years.
Most of the top 10 food and beverage
product launches of 2010 focused on
consumers’ interested in home-based
health and wellness.
BiggEst rEstaurants
doMinatE social MEdia
The nation’s biggest restaurant brands
continue to dominate in social media
as they move beyond conventional
advertising to use online tools to drive
traffic at the local level, according to the
latest Social Mention Index from socialmarketing software firm Vitrue. Starbucks,
McDonald’s and Subway took the first
three spots in the top 25 rankings, which
Vitrue says are based on the number of
online mentions the companies garner on
social-networking sites like Twitter and
Facebook, photo-sharing sites like Flickr,
check-ins on location-based services, and
inclusion on blogs.
Vitrue chief executive Reggie Bradford
says the biggest change in social media
since 2009 – the year Twitter gained wide
adoption among restaurant companies –
is the widespread buy-in from executives
in foodservice and other industries.
“It’s moved beyond an experiment
and individual campaigns to a true
mainstream channel that needs some
serious attention and investment,” he
says. “People realise it’s more than a
fad and becoming a dominant form of
communication.”
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02/08/2011 12:43:06
SOUNDBITES
FEATURE
pictured are: liu Biwei, chinese ambassador to ireland; one of the designers of the chinese
garden; and gary graham at Bord Bia
chinEsE gardEn at BlooM
frEnch tastEs
Pictured in Paris is Minister for
Agriculture, Food and Marine Simon
Coveney with Aidan Cotter, CEO, Bord
Bia and Noémi Carrelet from Jour, a
contemporary Parisian salad bar chain,
founded in 2003. Following Bord Bia’s
Marketplace event last year, Jour began
sourcing bakery and meat products
from Ireland. Today, it turnovers over
€8 million per annum and employs 170
people in 13 outlets across the Greater
Paris region.
A new and exciting Chinese element was incorporated into this year’s
Bloom event in June. Bloom is Ireland’s largest flower, food and family
festival and is organised by Bord Bia – The Irish Food and Horticulture
Board. The traditional Chinese garden was constructed for Bloom
in conjunction with the Suzhou Gardens Administration Bureau.
Commenting on the genesis of this initiative, Gary Graham, Bloom
Show Manager at Bord Bia, explains that an Irish garden that was
featured at the show in 2010 had a Chinese theme and it prompted
a great reaction from the Chinese Ambassador. After he discussed
the traditions of Chinese gardens with Bord Bia, and in particular the
gardens in the Suzhou region, the idea to bring a real Chinese garden
to Ireland for the 2011 event was examined; and in conjunction with
the Suzhou Gardens Administration Bureau, plans were put in place
to organise bringing the garden to Ireland. “The Suzhou Gardens
Administration Bureau has nine gardens listed by UNESCO (United
Nations Educational, Scientific and Cultural Organisation) as world
heritage sites, which is quite amazing for one region. The garden
featured at Bloom was designed by the Bureau and is based on
a classical design of that region which goes back as far as Ming
dynasty.”
A team of gardeners travelled from China to construct the garden and
plants for the space were sourced from Ireland. Alongside the garden,
a Chinese cultural programme of events was arranged for the show,
which included classical song, dance and performances.
China is a growing market for Irish food and drink exports and as
Gary explains the construction of the Chinese garden provided an
opportunity to develop relationships with Chinese contacts. “We see
this as an opportunity to build relations between the two nations and
we had a lot of officials and senior people from the food industry
in China come over to visit Bloom this year,” explains Gary. 2010
was a strong year for Irish food and drink exports to China, growing
by 12 per cent on the previous year’s figures to €127 million, with
meat and seafood performing well. Breiffini Kennedy, Manager at
Bord Bia’s Chinese office, says that the inclusion of the Chinese
garden at Bloom has attracted a lot of interest, and media coverage
in China is also helping to promote awareness of Ireland – and its
food and horticulture – within the Chinese marketplace, as well as
strengthening ties between China and Ireland.
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FEATURE
SOUNDBITES
dutch culinary
salutE for
prEsidEnt of
irEland
pictured are (from left):
president of ireland Mary
Mcaleese; Minister for
agriculture, food and
marine, simon coveney;
Michelin star chef Mario
sandoval and aidan
cotter, cEo, Bord Bia.
nEw irish food initiativE in spain
President of Ireland Mary McAleese
has launched a new Bord Bia initiative
in Spain designed to boost the image
and reputation of Irish food in the
Spanish market. The project involves
reaching out to student chefs at top
catering schools across Spain to build
stronger relationships with the future
generation of chefs and to establish
an awareness of, and loyalty to,
Irish produce. President McAleese
attended the first of a series of ‘Irish
Food Master Classes’ conducted by
the internationally renowned Michelin
star chef Mario Sandoval in March.
These classes provide trainee chefs
with an insight and understanding
of Ireland’s unique food and drink
product offerings and highlight
Ireland’s commitment to quality and
sustainability. In preparation for the
event, Mario Sandoval travelled to
Ireland in February to experience
firsthand Ireland’s world-class food
production, farming and fishing
industries. Speaking at the event
President McAleese said: “ Today,
we are bringing two food cultures
together and, I hope, forging
enduring relationships that will
bear fruit far into the future. Our
investment in research, animal
traceability and marketing makes us
uniquely placed to provide quality
food products.
Food and drink is, in fact, Ireland’s
most important indigenous industry,
one of our greatest sustainable
resources and one of our fastest
growing export areas. Today’s Master
Class is an important stepping stone
in building strong relationships
between Spanish kitchens and Irish
farms.” In 2010, Irish food and drinks
exports to Spain were valued at €210
million, an annual increase of 13 per
cent. Spain is Ireland’s second largest
export market for seafood and our
third most important for beef and
livestock.
A group of influential Dutch Michelin star
chefs welcomed President of Ireland, Mary
McAleese to the Netherlands in May. The
chefs, all members of the Chefs’ Irish Beef
Club, presented their favourite Irish dishes
to the President during an official business
luncheon at The Grand, Amsterdam.
Established by Bord Bia, the Irish Food
Board in 2004, the Chefs Irish Beef Club
is an exclusive European forum bringing
together leading Michelin Star chefs who
share a common passion for the finest
ingredients. Two star Michelin chefs Ron
Blaauw, Erik van Loo and Wilco Berends
together with one star Michelin chefs Gerrit
Greveling and Niven Kunz, collectively
endorsed the high quality of Irish food
using Irish beef, oysters and lamb in their
signature dishes.
President McAleese commended the
outstanding efforts of the award-winning
chefs who market and promote the
advantages of Irish beef by serving it in
their top restaurants. “I am immensely
proud to see how these world-renowned
chefs have embraced quality assured Irish
beef and I am impressed by their creative
and culinary flair”.
The Netherlands is a key market in
continental Europe for Irish food and
drink exports, with sales growing by an
impressive 17 per cent to reach €370
million in 2010. Sales of Irish beef, which
account for almost 40 percent of the total,
grew by 13 per cent in volume and six
percent in value during the same period.
thE royal touch
During a recent visit to London, the Minister for
Agriculture, Food and the Marine, Simon Coveney
visited Selfridges food store on Oxford Street.
Pictured with the Minister are: Paul Kelly, CEO of
Selfridges; Aidan Cotter, CEO, Bord Bia and Ross
Lewis, head chef for the State banquet during the Visit
of her Majesty Queen Elizabeth II to Ireland.
To build on the momentum of the recent State visit
and the increased interest in Irish food, Bord Bia
hosted a lunch in Selfridges, prepared by Ross Lewis,
for key UK media. Attendees on the day included
representatives from The Observer, The Telegraph and
BBC Good Food.
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