Almost 200 representatives from over 90 companies gathered today in the IMI Conference Centre, Sandyford, Dublin for Bord Bia's 9th annual Food and Drink Industry Day. Some 200 one to one meetings were held between Irish food companies and Bord Bia's network of overseas offices to discuss the challenges, issues and opportunities companies are facing in their export business. During a lunchtime ceremony, the Minister for Agriculture, Fisheries and Food Mr Brendan Smith TD addressed delegates and announced the winners of Bord Bia's Food and Drink Industry Awards 2009 (separate press release available).
Speaking at the event Dan Browne, Chairman, Bord Bia said "This has been an exceptionally challenging year for the Irish food industry, a period in which the marketing landscape has changed dramatically. The economic downturn and has prompted significant shifts in consumer behaviour and in shopping patterns. Food and Drink Industry Day presents an opportunity for reflection and evaluation as we seek to sift through the implications of these trends, and adapt our strategies to deal with the changed environment."
Keynote speakers included Austin Hughes, Chief Economist, KBC Bank who reviewed the challenges facing the industry, strategies for survival and opportunities for growth within the sector. Bord Bia also presented its new consumer trends research, results from a benchmarking distribution study focused on Continental EU markets, and used the event to assist companies in their preparations for Marketplace, a key upcoming trade event scheduled for February 2010.
Aidan Cotter, Chief Executive, Bord Bia commented "As industry seeks to reposition itself in the midst of dramatic change in its marketing environment, innovation in products and marketing has never been more urgent. Bord Bia’s tracking research, for Ireland and the UK, as well as our global consumer trend work, point to significant shifts in consumer attitudes and behaviour. The extensive data bank arising will give important, fresh insights to enable companies focus their innovation on changing needs." He added "Meanwhile as Eurozone markets become relatively more attractive our case study research on distribution in Continental EU markets sets out some key requirements that are critical to success."
Trends Update
As delegates arrived at the IMI Sandyford, they were invited to participate in a ‘Trend Trek' – a 30 minute interactive tour and visual display of Bord Bia's latest consumer trends. According to Helen King, Senior Business Analyst, Bord Bia "our Consumer Lifestyle Trends programme allows Irish food and drink companies to better predict and prepare for consumers' future needs and wants. They are outward looking, future focused and consumer driven. Since the programme's initial launch in 2006, the trends have changed, new themes have emerged, some themes have become stronger and other themes have waned."
The research carried out in association with the Futures Company, highlighted the potential impact on the environment; the pursuit of better value and the need for greater convenience, at no greater cost, as just some of the new consumer trends. Participants were encouraged to think about the relevance of the trends to their individual businesses and how they could be incorporated into future planning and longer term strategies.
PERIscope
Bord Bia also revealed its latest PERIscope** findings – a comprehensive review of Irish, Northern Irish & British food attitudes, shopping and cooking trends. Cooking from scratch is back on the menu with 63 percent of those surveyed doing so at least a few times a week, up from 56 percent in 2005. Cookery classes are also in vogue with 9 percent of those surveyed taking a class in the last three years and at least one in five now claim to be entertaining more at home.
The research also found that quality, local foods are increasingly important to Irish consumers. Seventy one percent of those surveyed look for a quality label when shopping, compared to 49 percent in the UK. The significant role of country of origin labelling has increased to 71 percent compared to 50 percent in 2001. This is encouraging news for Bord Bia's profiling of its quality assurance mark highlighting origin.
Irish consumers are significantly more aware of the environmental impact of their purchases. Consumers' knowledge and understanding of environmental terminology has increased significantly since 2007 – with 41 percent of Irish consumers now aware of the term 'sustainability', compared to 27 percent in 2005; 'carbon footprint' is up to 64 percent, from 30 percent and 'food miles' up to 44 percent, from 30 percent.
Distribution Study
As part of its strategic priority to broaden the export reach of Irish food and drink manufacturers, Bord Bia recently carried out a research study* to assist companies identify the key criteria that need to be considered when choosing their distribution option. The study analyses the distribution strategies employed by companies outside of Ireland for successfully entering markets in France, Spain, Holland and Sweden. During his presentation Padraig Brennan, Senior Business Analyst, Bord Bia emphasized the importance of a local presence in the market; the level of competition in one's chosen market channel and the acceptable costs and timescales to develop distribution.
Ireland's Largest Indigenous Industry
Following two years of substantial growth which saw €1.4 billion added to their value, Irish food and drink exports dropped back by 6.5% in 2008 and a further decline is anticipated in 2009. The decline reflects continued sterling pressure, severe difficulties in the global dairy market, and the impact of the economic downturn which is bringing pressure on returns across all sectors. However, there is some prospect for a return to growth in 2010.
Ireland's agri-food sector plays an important role in the Irish economy, accounting for almost 9% of employment and 10% of Irish exports. As much as 65% of manufacturing exports by Irish-owned firms are estimated to consist of food and drink. The UK is the main destination for Irish food and drink exports, accounting for 45% of the total; 32% go to Continental EU markets with the remaining 23% going to non-EU markets. The Irish food and drink sector has the highest usage of Irish produced inputs across major sectors in the Irish economy with close to three quarters of the sector’s inputs sourced domestically.
* Distribution study - the research is based on 13 case studies of mainly UK companies of varying size, that have successfully distributed a range of ambient, chilled and frozen prepared foods to France, Sweden, Spain and the Netherlands.
** PERIscope study - is a biennial survey carried out by TNS mrbi, conducted from 2001 in ROI, 2003 in GB and from 2005 in NI. Face-to-face interviews, conducted in-home in 2009 on a sample size of circa 1,000 in each market (ROI, NI & GB). Conducted amongst all adults aged 15+ in ROI and all adults aged 16+ in NI & GB
Food and Drink Industry Awards 2009
The winners of Bord Bia's Food and Drink Industry Awards 2009 were as follows:
- The Born Global award, recognising outstanding achievement in the challenging export market, went to Kerry Foods for its Cheestrings product.
- Oak Park Foods, Cahir, Co. Tipperary won the Consumer Focus award, recognising product innovation, for its pre packed bacon rib product launched earlier this year.
- The Thinking Big award, for small businesses demonstrating exceptional entrepreneurial spirit, was presented to ABC Nutrition, a human nutrition company based in Shannon, Co. Clare. ABC manufacture and distribute nutritional powders, vitamin capsules, and spray vitamins.
- Glanbia's rebranding of its fortified milk – Super Milk – won the Spotlight award, an award that appreciates the vital role that branding and marketing play in making a product a success.
- The Home Grown award, recognising companies who have adapted and innovated in the light of changed economic circumstances, was presented to C&C for its recently launched Bulmers Pear Cider.
- Highfield Nurseries, based in Oldtown, Co. Dublin won the New Perspectives award for its Living Flavour fresh herbs product. This category recognises products that have been repositioned to meet changing consumer demands through new approaches and smart market adaptation.
- The Environmental Enrichment award, for leadership in promoting the principles of sustainability was presented to Glenisk, based in Killeigh, Co. Offaly.