Welcome to the August edition of Bord Bia's Ireland Market Foodservice Newsletter.
Appreciate that we are still in the midst of the summer holiday season…but just to flag that we have a date in the diary for our end of year Foodservice Seminar! We will be back at the Killashee House Hotel, Naas on Wednesday, November 15th. Further details and the ability to register your place will be available via our website from next month.
Dunkin’ Spiked set to release range of canned ‘hard’ iced coffee and tea
In this month’s newsletter we report on the growing demand for non-alcohol and plans by Diageo to increase their production of Guinness 0.0 by almost 300%. At the same time, news out this week reports that Dunkin’ in the US will soon launch a range of hard iced coffee and tea under the Dunkin’ Spiked brand and in partnership with Boston’s Harpoon Brewery. The range will come in two varieties (one at 6.0% ABV and one at 5.0% ABV) and will be available for sale from convenience store shelves – reflecting Dunkin’s ambitions to grow its presence in the retail alcohol category in the US. A great example of a market sector disruptor (playing in both foodservice and retail) and a category disruptor (moving into the hard seltzer space), and a reminder that competition can come from the least likely sources!
GDP rebound in second quarter may mean economy is out of recession
RTE.ie – 28.07.2023
The Irish economy as measured by Gross Domestic Product (GDP) returned to growth in the second quarter of the year, new preliminary figures from the Central Statistics Office (CSO) show. GDP grew by an estimated 3.3% between April and June. That compares to a contraction of 2.8% in the first three months driven by a 13% drop in industrial production, due to volatility in activity in the pharma sector. It means that the economy may have emerged from the technical recession recorded because of a very slight contraction in the final quarter of 2022 and the bigger one during the first quarter of 2023. However, the GDP flash estimate is a relatively new data set and the CSO warns that care must be taken when interpreting it.
Food Reformulation – What does it mean for Foodservice?
Chef Network – 22.05.2023
In 2021, the Department of Health launched the Roadmap for Food Product Reformulation in Ireland. The aim of the roadmap is to improve the health of the people in Ireland by changing the food environment to make it easier for people to make healthier food choices. Food reformulation means improving the nutritional content of foods and drinks by reducing calories and target nutrients including saturated fat, salt and sugar in some foods. The roadmap for food reformulation is targeting key nutrients in foods purchased in retail and also in foodservice. One third of Irish people eat out once a week and one in four eat lunch out most weeks. Food served in cafes, restaurants and takeaways has the potential to affect the nutritional health of many people in Ireland. More information on the Roadmap for Food Product Reformulation in Ireland can be found here.
McDonald's Revenue Growth To Moderate As Menu Prices Ease
Hospitality Ireland – 28.07.2023
McDonald's said on Thursday 27 July that revenue growth was expected to moderate in the second half of the year as signs of easing inflation prompt the burger giant to temper menu prices. Shares of the company were, however, up 1.5% in morning trading after the burger chain posted better-than-expected quarterly profit and sales as it continued to attract consumers to its outlets. Major US restaurants have had to raise prices to offset a hit to profit from higher costs tied to labour as well as commodities like beef and dairy, helping propel their revenue over the past several months. However, with costs of ingredients like chicken, cheese and pork now easing, restaurants have hit pause on further price hikes. Quarterly US comparable sales climbed a better-than-expected 10.3%, while those in its internationally operated markets also topped estimates with 11.9% growth.
Guinness 0.0 Production to increase 300% at St James's Gate
Hospitality Ireland – 24.07.2023
Guinness has announced that production of Guinness 0.0 will increase by almost 300%, following an investment of €25 million in a new facility at St James's Gate to meet growing domestic and global demand for the non-alcoholic stout. All global production of Guinness 0.0 takes place at St James's Gate with the main export markets including GB, Europe, US, Canada, Middle East and South Korea. In Ireland, demand continues to grow since the product launched in 2021. It is forecast that the non-alcoholic alternative will account for 10% of all Guinness trademark sales in Ireland in the coming years.
Irish Hotel Transactions Increase in Second Quarter
Business World – 25.07.2023
A new report from CBRE has found that transactional activity in the hotel sector picked up in the second quarter of the year following a slow first quarter. A total of €91 million worth of Irish hotel transactions completed in the second quarter, across six separate deals, while a total of €135 million of capital was deployed on Irish hotels in first half 2023. Occupancy rates across all Irish cities, including Dublin, remain strong. On a year-to-date basis (to the end of May), occupancy in Dublin has averaged 78%, relatively in line with levels achieved for the same period pre-pandemic in 2019. CBRE predicts a busy summer period will see this rate continue to grow. Average daily rates (ADR) have also continued to increase sharply.
Bewley’s, Wrights of Howth join forces to bring in-store coffee service
Drinks Industry Ireland – 25.07.2023
Two iconic Irish businesses have joined forces for a new venture that will see Bewley’s provide Wrights of Howth with its brand-new bean-to-cup beverage units and barista coffee service. Both firms are currently embarking on new journeys to cater to evolving consumer trends centred around on-the-go consumption, convenience, and health. The new Bewley’s in-store units will not only provide traditional coffee options but will also cater to the growing trend for iced coffees as well as plant-based milk to accommodate a wide range of dietary preferences.
Dublin Airport opens new food and drink hall 'The Mezz' in Terminal 2
Dublin Live – 18.07.2023
Dublin Airport has unveiled a brand-new food and drink hall in Terminal 2. 'The Mezz' is located in the upstairs airside departures area of the terminal and has been developed in partnership with SSP Group. Six outlets are located at the new street food-style unit, including Camile Thai, Handsome Burger, and Badger and Dodo coffee. Passengers can also avail of Erin's Kitchen, which serves traditional Irish food, and Ancho Hancho, inspired by the Mexican street market. A bar "boasting a range of locally brewed beers" is also located in The Mezz. Dublin Airport passengers can also look forward to even more outlets with leading specialty coffee roaster, Cloud Picker Coffee, is set to open at the airport by end July.
Cork retail giant Musgraves acquires Dublin food producer
Irish Examiner – 08.08.2023
Cork-headquartered retail group Musgraves has purchased a Dublin-based fresh food producer for an undisclosed amount, marking the group's fifth acquisition in eighteen months. The latest deal for the wholesaling group, which also owns SuperValu and Centra, comes just one week after its acquisition of UK fine food company, Ritter Courivaud. Its newest purchase, Doyles Veg Prep, is a Clondalkin-based food producer that supplies the Irish catering industry. The Dublin company has a range of more than 400 food products and employs more than 80 people operating from a temperature-controlled facility in Clondalkin. According to its most recent financial statement filed to the Company Registration Office, Doyles Veg Prep recorded a profit of just under €1.1m in 2022.