New Guide for Speciality Food Sector

Minister Brendan Smith today launched Bord Bia's Guide to the Speciality Food Retail Market in Ireland, in the Lyrath Estate Hotel, Kilkenny, as part of the South East Food Forum. The Guide offers the most up-to-date information available on the speciality food market in Ireland with a focus on retail trade, both multiple and high-end independent specialists.

Brendan Smith T.D, Minister for Food and Horticulture, commented: "An integral part of the overall Bord Bia Information Services package for small business, this guide will be of assistance to speciality food enterprises wishing to develop and grow in an ever-changing, challenging and exciting marketplace".

The guide highlights the issues that small companies and entrepreneurs face when entering the speciality food market in Ireland while outlining the different demands that each route to market presents as speciality companies gain entry and grow their presence.

The demands can vary widely from retailer to retailer but there are particular characteristics that differentiate dealings with multiple retailers (e.g.Tesco Ireland, Dunnes Stores, Superquinn and SuperValu) and independent specialists (e.g. Donnybrook Fair, Sheridans, URRU, Caviston's Food Emporium, Country Choice etc) all of which are explored in the guide.

Bord Bia research, conducted by those directly involved in speciality retailing in Ireland, reveals that the market is significant, diverse and growing. A 2006 Bord Bia survey of the sector valued output at €475 million, representing a 10% growth year on year.

Muiris Kennedy, Director of Marketing Services, Bord Bia, commented that "The Guide provides valuable insight for producers and start-ups targeting the Irish Speciality Food market. It will help companies understand buyer requirements and the trading policies of Multiple Retailers and Independent Delicatessens throughout the country. It also outlines the changing characteristics of the speciality market and the increasing sophistication of the Irish Consumer, who is becoming more discerning about the quality of the foods which they buy and knowledgeable about their provenance".

There is an emerging category of "purge and splurge" consumers who trade down on basic grocery items while treating themselves to foods that are luxurious, indulgent and more expensive. Additionally, Ireland's economic prosperity means that many different nationalities now reside in the country. This has created a demand for specific ethnic foodstuffs, often varieties rarely seen in Ireland before.

Current research on consumer behaviour points to three key emerging trends that are influencing buying patterns. These are convenience, health & wellbeing, and quality. Speciality foods can very often meet all of these needs, representing potential for additional growth in the marketplace.

Retailers have not been slow to recognise this and have responded to changing demand in a variety of ways. Larger multiples such as Tesco Ireland and Dunnes Stores have developed premium own-label ranges ('Finest' and 'Simply Better' respectively) while SuperValu will shortly launch its own premium private label range. Superquinn is continuously refreshing its offer of speciality products in a number of categories.

Independent specialists, in the form of premium delicatessens and high-end general retailers (such as Avoca Handweavers and Donnybrook Fair), have responded by embracing the concept of speciality foods and place a significant focus on stocking high quality products. There is a particular appeal in stocking goods that are not necessarily available among the major multiples.

This practical guide provides advice and assistance to food producers planning to enter the speciality food market in Ireland. Its launch at the 4th South East Food Forum complemented the collaborative work between the Department of Agriculture, Fisheries and Food and Bord Bia, providing guidance for best practice in regional food marketing and encouraging food entrepreneurship in the regions.

-ENDS-

NOTE TO EDITOR

The definition of speciality foods from a trade perspective: A precise definition of 'speciality foods' is difficult but trade specialists agree that elements common to these foods include:

• Delivery of superior taste

• Use of high quality ingredients

• Manufactured using artisan/handcrafted techniques

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