Small Irish Food Businesses Demonstrate Resilience Through Recession

According to Bord Bia’s recent food industry survey (December 2010) over 70 percent 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 percent rated them as better.

1/31/2011 --- Small food businesses in Ireland are continuing to demonstrate strong growth both on the domestic and export markets, according to new figures released by Bord Bia (The 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 percent 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 percent 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 percent rated them as better.

When asked the source of business generated over the last year some 74 percent increased business with existing customers, 43 percent won back business with former customers, while an impressive 90 percent developed business with new customers. In terms of sales prospects, 65 percent had increased their sales forecasts for 2011.

“We’ve seen significant success in the past few years despite this being perhaps the most difficult period faced by the sector. Small business sales are growing even among those dependent on a very challenging Irish market. While annual turnover has grown by 7 percent, certain categories are exceeding this level of growth” commented Una Fitzgibbon, Marketing Director, Bord Bia. “Non alcoholic beverages have shown in excess of 40 percent growth since 2007, driven by an appetite for mineral water and sports nutritional drinks; alcoholic beverages increased by more than 30 percent driven by a new demand for boutique or craft beers and charcuterie has grown by over 25 percent as consumers become more aware of the distinction in deli meats.”

Over 140 food entrepreneurs gathered for Bord Bia’s Small Business Seminar in Enfield, Co. Meath. Keynote speakers included those who have overcome personal and business obstacles including Grania Willis, the first Irish woman to summit the Himalayan peak Cho Oyu (the sixth highest mountain in the world), and Willie Wixted of ABC Nutrition, a fast-growing sports nutrition manufacturer set up in 2007, currently exporting to thirteen countries including France, Sweden, Spain and India. Other keynote speakers included branding expert John Fanning, Economist Jim Power and entrepreneur Domini Kemp gave varied perspectives on how to best use branding, marketing and finance to bring sales to life in the current climate.

Speaking at the conference, Eileen Bentley, Manager of Small Business, Bord Bia said “Today’s seminar aims to remind small food producers of the wide range of services and programmes readily available to develop existing and new business. Increasingly we’ve designed our services in Bord Bia to make profitability and growth more accessible to small food businesses. We provide access to buyers in Ireland and export markets; explore efficiencies on behalf of client companies such as shared distribution; help them build better brands through workshops, coaching and one to one mentoring and invest in their marketing development via the annual Marketing Assistance Programme. In 2010, 157 companies were approved a total of almost €900,000 in marketing grant aid”. Today’s delegates also heard about ways to gain a foothold in export markets via Bord Bia’s Marketing Fellowship Programme. In 2009 and 2010, Bord Bia Fellows carried out thirty seven projects across eight overseas markets on behalf of twenty small food producers.

Bord Bia’s Vantage website is the focal point for small food businesses. The website includes information on a vast range of topics from ‘How to Start a Business’ to the latest food marketing insights and opportunities. In addition to the website, Vantage Partner and Vantage Plus, Bord Bia’s business development programmes for small businesses, are tailored programmes dealing with individual company needs at various stages of growth. They have resulted in participants winning new business, exporting for the first time, creating strategies for growth and expansion, undertaking re-branding exercises and most importantly, facilitating participants to step back from the everyday business to create a long-term vision for where they want to be.

Bord Bia recently launched a Food Entrepreneurs Network to establish a formal networking environment for food entrepreneurs. Among the themes for future meetings, as identified by the members, will be finance and investment and best practice sharing through case studies and discussion. In addition, following the outcome of research conducted by Bord Bia in late 2010, planning has commenced for the creation of a virtual innovation space for food entrepreneurs and others to come together to work and develop their ideas.

In 2011, small producers will travel with Bord Bia to trade fairs in the UK, Germany and further afield. Next month, seven organic small producers will participate on the Ireland stand at Biofach in Germany, the largest international organic trade fair in the world.  The Speciality & Fine Food Fair in London in September is a key trade showcase for Irish artisan food.