“This is a dynamic sector with many companies achieving double digit growth and with continued development ambitions as evident among the some 116 small food producers approved for support under Bord Bia’s marketing finance assistance programme this year” he added.
The event, which attracted over 150 delegates, follows a series of 10 distribution workshops organised by Bord Bia as part of its Vantage Programme. Launched in November 2007, Bord Bia Vantage offers a range of services and resources to owner managers of progressive SME’s with a turnover up to €3.5 million.
Bord Bia opened the seminar with the launch of its new Guide to Distribution for small food and drink producers. Speaking at the event themed ‘Collaborating Today for Tomorrow’ Mr. Cotter said ‘’This guide is a practical user friendly manual for all producers looking to improve distribution efficiencies. It is a step by step guide taking the reader through the complete cycle of distribution management including possible channels to market, cost modelling, choosing the right distributor, negotiation skills and relationship management’’.
According to keynote speaker Professor Andrew Fearne, Director of the Centre for Supply Chain Research, Kent Business School “Distribution is complex for small food producers and the solutions need to be tailored to the market depending on the producers’ customers, location and product type. Collaborative distribution (working together) is the most effective approach to distribution for the majority of small food producers but does not come easy and producers need to be prepared to work together for long term gains to be achieved”.
Pallas Foods is one of Ireland’s leading distribution companies serving both the foodservice and retail sectors on a national basis. Tadhg Geary, Commercial Director with Pallas Foods, discussed distribution in an Irish market context and the role of the smaller producer. “Ireland has over 14,000 foodservice outlets with the sector valued at over €5 billion (Mintel 2007). The logistics of supplying such a wide customer base can be daunting for many small food producers resulting in the sector being ignored by many or only being serviced in a very small way” he said.
“Foodservice distribution requirements are radically different from those of retail with, for example, many orders being placed the afternoon before for next day delivery. To succeed in the sector, small producers need to give serious consideration to partnering with an established foodservice distributor who has the structure and resources to get the producers product to a wider area” he added.
Eileen Bentley, Manager, Bord Bia Small Business Department, presented six innovative distribution models identified to specifically meet the needs of Ireland’s small business sector. The models are all underpinned by the principle of collaboration. “The cost of distribution can be challenging with the cost of a van and driver estimated at €60,000 per year. Pooling transport and supporting local networks will be vital if small producers are to maximize their coverage, improve truck fills and reduce food miles. There are many well established food distributors serving both the retail and foodservice markets nationwide and these can offer a critical lifeline to reach consumers” she said.
Notes:
There are three streams of activity within Bord Bia Vantage:
- Vantage Point – a free access website containing advice and information relevant to running a small business in Ireland www.bordbiavantage.ie
- Vantage Plus – provides specific, practical advice on the common issues that impact on small business growth e.g. branding, distribution, innovation
- Vantage Partner – an 18 month business development programme designed for owner/manager’s committed to taking their companies to a new level of growth