“The focus on Continental EU markets, to which Ireland currently exports over €2.5 billion worth of food and drink annually, comes at a time when the strength of the euro has highlighted the relative attractiveness of Eurozone markets” according to Aidan Cotter, Chief Executive, Bord Bia. “With close to 70% of our exports destined for the UK and non-EU markets, the depreciation of sterling and the dollar, some 15% lower against the euro in the first half of the year, has brought downward pressure on the value of total food and drink exports when translated back into euro in 2008” he continued.
The capacity of the industry to achieve compensatory price increases in these markets has been exacerbated by pressures to reduce food price inflation amid growing competition among retailers in the face of the economic downturn and pressure on consumer spending.
“Also, following an exceptionally strong performance in 2007, when Irish dairy exports grew by 13%, the value of total Irish food and drink exports this year will be further affected by an easing back in dairy product prices and returns from international markets” according to Aidan Cotter.
SIAL will this year feature 5,300 exhibitors representing 99 countries and is expected to attract over 140,000 international buyers. The strong presence of Irish food companies at the event builds further on Bord Bia’s programmes to assist Irish companies increase their presence on the Continental European market.
Earlier this year some 16 Irish food companies participated on Bord Bia’s first ever Marketplace Roadshow to Belgium and the Netherlands. The Roadshow programme comprises of two modules, an in depth two day market study visit followed later by a series of one to one buyer meetings. The programme has already resulted in three new business contracts valued at an estimated €1.3 million per year. Marketplace Roadshow has also been rolled out to Italy and Greece, with 8 companies due to complete the second phase of the programme this week. The programme will be further rolled out to Spain, Denmark and Sweden in 2009.
Meanwhile, Bord Bia’s latest report “Continental PERIscope” released at SIAL today, aims to assist Irish food and drink companies, and Bord Bia, to strategically plan for further export growth in continental Europe. The study explores the eating, shopping and cooking habits of adults in France, Sweden, the Netherlands, Germany and Spain. It provides new insights into labelling, cooking preferences, health and environmental issues.
The report indicates that environmental concerns remain top of mind for continental consumers, with sustainability having a considerable impact on shoppers’ choices.
“The research findings provide us with a better understanding of the minds, concerns and behaviours of consumers in some of Ireland’s principal target export markets. In light of the current economic climate, it is more important than ever that the industry is proactive in looking forward and mindful of emerging trends. Research studies such as Continental PERIscope are essential for the continued growth and development of Ireland’s exports and also play a significant role in our preparation for events such as Marketplace Roadshow” commented Aidan Cotter.
Continental consumers remain concerned about the environment with 63% of French consumers opting for food with minimal packaging and 63% of Spanish consumers preferring to buy from companies aware of environmental issues. Sustainability is also impacting on shoppers’ choices with over a quarter of the Swedes surveyed actively sourcing food with sustainable features. However, continental consumers have yet to embrace the environmental and ethical terminology. Almost 7 out of 10 Spanish consumers were not familiar with the term ‘food miles’ and similarly 53% of French consumers hadn’t heard of ‘carbon footprints’.
Over 80% of French consumers surveyed enjoy cooking and creating great meals, however time is of the essence. Taste and quality remain critical when eating or preparing food, however the French are now looking for food offerings that are more convenient and quick to prepare. Earlier this year, Bord Bia, in conjunction with its French and British counterparts, Interbev and Eblex, launched a lamb campaign entitled Agneau Presto (Quick Lamb). The campaign aims to attract a new younger consumer by promoting cuts that are quick and easy to cook. The Agneau Presto range is available in French retailers and independent butcher outlets since August 2008. The campaign, which represents a total investment of €3.9million, will run over a three year period to 2010. During the Irish lamb season, Bord Bia strengthened its campaign with further in-store merchandising and the launch of a new Irish lamb website (www.agneau-irlandais.com) featuring podcasts of new convenient recipes.
Health remains a strong driver in food choices with an increased tendency among continental consumers to eat healthier foods. Irish food and drink companies should take into account that European adults find it difficult to understand labelling and the nutrition claims on food. In addition, 93% of the Spanish, and 90% of the German, consumers surveyed urged manufactures to assist them make healthier food choices.