A major new campaign to support the doubling of Ireland’s beef exports to Germany by 2015 was launched by Bord Bia today at Anuga, the world’s largest food and drink trade fair taking place in Cologne. The promotional campaign, aimed at trade buyers and consumers alike, seeks to build awareness of Irish beef from 10% to 50% amongst these targets and facilitate substantial growth over the next three years. In 2010, Ireland exported 9,600 tonnes of beef to Germany, valued at €45 million. This figure is expected to reach 15,000 tonnes in 2011, with a target of 30,000 tonnes, or €150 million, by 2015.
According to Michael Carey, Chairman of Bord Bia, "this campaign marks a new phase in the continued repositioning of Irish beef in the European marketplace, which accounts for 98% of our total exports. The German market is the second largest beef importer within the EU after Italy, importing almost 400,000 tonnes a year, and our goal, in support of Food Harvest 2020 targets, is to assist industry build a premium position and treble its import share by 2015".
Irish beef exports, in value terms, are now expected to grow by 9% to more than €1.7 billion in 2011. The industry has been benefitting from an improved global balance between supply and demand, notwithstanding a tough consumer environment with consumption in EU markets coming under significant pressure.
Building on the current strong export performance in this competitive environment will require a sustained marketing and promotional drive. According to Aidan Cotter, Bord Bia Chief Executive, "this latest initiative follows comprehensive consumer research in the German market and a highly encouraging performance by industry in expanding sales over the last twelve months. Four of the top five German retail groups, as well as leading steakhouses, now stock Irish beef, providing a major platform to further develop and widen, through targeted consumer promotion, its penetration of both the high end retail and foodservice market".
Research Findings
In February 2011, Bord Bia undertook qualitative and quantitative consumer research across three European markets (Germany, Netherlands and Italy) to gain a better understanding of consumer attitudes to Irish beef and to establish a compelling marketing proposition. The research found Irish beef scored highest on taste and the German consumer associated it with two key identifiable features - place and culture. These findings have formed the basis of the new promotional campaign.
Comprehensive Campaign
The consumer-facing elements of the campaign include the launch of a new website (www.irish-beef.de); print advertising across a number of national newspapers and targeted gourmet food magazines; in-store tastings and point of sale material starting with 75 supermarket promotions before Christmas. In addition, a national foodservice campaign is planned with two influential steakhouses - Blockhouse and Maredo.
From a trade perspective, the campaign includes national trade advertising; key trade journalists to visit Ireland to gain a first-hand experience and understanding of Irish beef and our high quality standards; the development of tailored information packs to assist buyers and importers and also the establishment a Chefs’ Irish Beef Club in Germany to generate further trade support and ambassadors for Irish beef.
Exploiting and underpinning Ireland’s green image, the trade campaign will also feature an ongoing communications programme around Bord Bia’s sustainability initiative for the beef industry. Over the past five months, following the success of its pilot programme, Bord Bia has been rolling out its carbon footprint initiative across more than 7,000 Irish beef farms, with all 32,000 member farms in its Quality Assurance Scheme set to receive their first sustainability audit by the end of next year. Using a calculation model appropriate to Irish conditions, developed in close collaboration with Teagasc and accredited by The Carbon Trust* in the UK, Bord Bia is collecting data from up to 500 farms per week through an initiative that is unrivalled anywhere in the world. Work is also underway to broaden the initiative to capture new sustainability measures around water and biodiversity as a further objective demonstration of Ireland’s green credentials.
ANUGA 2011
Twenty-three Irish food and drink companies are participating at ANUGA this week which takes place until Wednesday 12th October. ANUGA is the world’s largest food and drink trade fair, attracting over 6,700 exhibitors from 95 countries and 164,000 trade visitors from 174 countries. Ireland is represented in the meat, dairy and beverage halls. (See Notes to Editor for full list of participants)
Ireland’s food and drink exports to Germany in 2011 were valued at €398 million, representing a 30% year on year increase. All sectors preformed strongly, however Irish beef exports more than doubled last year while dairy exports increased by 55%. The main exports are dairy (Kerrygold), alcoholic beverages (Baileys, Tullamore Dew, Kilbeggan, Jameson) and meat. Germany is the largest market for the Kerrygold brand where it holds the market leader position within the butter category. Export growth is expected to continue in 2011 where exports levels recorded for Jan – May show an increase of 37.5%, or €52 million, compared to the corresponding period last year.
Ireland’s food and drink exports are expected to reach a new all time high of €8.9 billion in 2011, an increase of more than 12%, or almost €1 billion, on 2010 levels. This follows growth of €700 million in 2010 leaving Ireland’s food exports in 2011 some 25% ahead of 2009 levels. Strong global prices are driving export growth, with the FAO food price index 15% ahead of this time last year, however increased volumes of dairy products, pigmeat, whiskey, cider, confectionery, sauces/soups and mushrooms are also boosting revenues. It is estimated volume growth across these categories will account for up to 30% of the total.