April 27, 2021
Profiles and Interview
Agriland
Research: 75% of Irish food businesses expect revenue growth in year ahead
Author: Stella Meehan
Date: 27th April 20201
Small and medium-sized Irish food businesses (SMEs) are optimistic about their growth prospects, according to new research by Love Irish Food and PwC, which found that 75% of companies operating in the sector are anticipating their revenues to increase in the year ahead.
The 2021 Irish SME Food Barometer reveals that this optimism is echoed by a favourable outlook for the Irish economy with 65% of companies confident the economy will improve over the next 12 months.
This is despite challenges related to Covid-19 and Brexit, up from just 16% in late 2019.
However, some caution is in the air as these positive economic growth forecasts are tempered by 22% of companies who believe economic growth will decline in the year ahead.
Speaking at the survey launch, Owen McFeely, director, PwC retail and consumer practice, said: “With the prospects of the reopening for our economy over the coming months, the research reveals cautious optimism for business prospects for Irish food SMEs.
Executive director of Love Irish Food, Kieran Rumley, said: “Notwithstanding a difficult trading environment, it is encouraging to see evidence of optimism amongst food sector SMEs regarding the potential for their own company’s performance in the sector, reflecting factors they feel a greater degree of control over.
“However, volatile commodity prices now clearly pose a new and significant threat to companies, especially in the context of Covid-19 related costs imposed on such businesses more recently,” he added.
“It is unlikely that SMEs will be able to shoulder the burden of these additional costs for long and may eventually be forced to pass these on as consumer price increases.”
Positive sentiment from SMEs
Separately, the positive sentiment expressed in the new research findings indicates that there will be a significant uplift in the levels of capital investment made by food and beverage companies, following a significant stall during the pandemic.
69% of respondents stated that they will not delay investment over the coming 12 months, compared to 62% who said they did delay such investment in the last 12 months, representing a dramatic turnaround. Furthermore, 20% of respondents confirmed that they are planning to launch new products or services to drive business growth in 2021.
A total of 11% will enter new markets. Other activities to drive business growth include implementing operational efficiencies (19%) with a further (11%) aiming to achieve growth by investing in digital strategies.
Potential price increases
Almost one in ten (8%) will seek price increases, up from 6% last year, highlighting the ongoing challenge for many Irish companies who are grappling with tight margins and cost competitiveness.
The growth of volume at the expense of value, continues to place huge pressure on the food manufacturing sector. The impact of Covid-19 (58%) is the greatest threat for the food and beverage sector, according to the SMEs surveyed, fuelled by economic uncertainty, and associated labour issues.
Volatile commodity prices (43%) are also a significant threat for food and drink SMEs. The research indicates that this is likely a reflection of uncertainties in global and local supply chains. Almost one in four (24%) are concerned about Brexit.UK market.
Despite the varied challenges posed to the sector by Brexit, the UK is the most important export market for Irish food businesses, followed by the European Union, according to Love Irish Food.26% of respondents to the survey said that the UK continues to be their most important market.
Notably, almost a quarter (24%) stated that more than one-fifth of their company’s revenues in 2021 will come from trade with the UK compared to 19% in 2019.69% consider the Republic of Ireland their most important territory for growth.
Sustainability
Environmental sustainability remains high on the agenda for Irish food and drink SMEs with 60% of those surveyed stating that the importance of having an environmental sustainability strategy in place has increased this year. In addition, over half (57%) of companies confirmed that they have a sustainability plan in place to make improvements throughout 2021.
Key areas of investment include energy consumption (22%), packaging reduction (18%) and water usage (16%).Recent PwC global research indicated that 55% of consumers agreed that they buy from companies that are conscious of protecting the planet, and agreed 54% agreed that they buy products with eco-friendly packaging.
For grocery shopping, in particular, consumers across the board say that they’re willing to pay a price premium for healthier options (55%), local produce (50%) and sustainable packaging (46%), regardless of shopping online or in-store.
Owen McFeely concluded: “A key opportunity for the sector is the area of sustainability. Consumers have become far more sophisticated when it comes to sustainable choices. “Irish Food SMEs are and will be dealing with customers who want to know what they are doing to play their part to protect our environment. Building a sustainable business is not a passing fad.”
“Knowing what consumers now value and changing the business model will define their long-term sustainability and growth.”
https://www.agriland.ie/farming-news/research-75-of-irish-food-businesses-expect-revenue-growth-in-year-ahead/—
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February 10, 2020
Profiles and Interview
Picture L to R: Kieran Rumley, Executive Director, Love Irish Food; Robin Jones, CEO, Golden Bake and Antoinette O’Callaghan, Marketing Manager, Exterion Media (Ireland).
Golden Bake wins €85,000 advertising award from Love Irish Food
February 6th, 2020 – Golden Bake have been named the winner of the Love Irish Food Brand Development Award for 2019 and awarded a fully funded €85,000 advertising campaign to be in campaign in March 2020. The award is run in conjunction with Exterion Media, Owens DDB Advertising, Innovate Solutions, Checkout Magaizine and Designbank MBD.
The award win will provide Golden Bake with €75,000 in advertising space, scheduled across Exterion Media’s retail portfolio and Retail digital network. The extensive out-of-home campaign will appear nationally for two weeks and includes print production and digital animation. Additionally, Owens DDB Advertising Agency will provide the winner with up to €10,000 creative bursary to create and develop the outdoor advertising campaign. Golden Bake will also receive a €5,000 bespoke product sensory research package from Innovate Solutions. The second award this year went to west Cork company Spice O’Life who receive €17,000 media and promotions support from Checkout magazine and Designbank MBD.
Golden Bake, based in Coolock, Dublin, employing 70 people has been producing frozen puff pastry products of the highest quality since it’s opening in 1987. With convenience in mind, Golden Bake brings together flavour combinations in golden and flaky puff pastry that can be baked in minutes in your own oven. Using the traditional French method to create light, flaky bakes made with as many delicious Irish ingredients as possible, Golden Bake has become the leading puff pastry company in Ireland.
Accepting the Brand Development Award, Robin Jones, CEO of Golden Bake, said: “Winning the Love Irish Food Brand Development Award has been a huge achievement for the entire team at Golden Bake. It is important for our brand to be aligned with Love Irish Food and the work they do to support and highlight local food brands that are made in Ireland.
“The award win will give us the opportunity to advertise our business throughout Ireland, helping to highlight our products. We whole-heartedly encourage consumers to support local brands, knowing that these products have been locally produced and contribute so much to local communities throughout Ireland.”
Congratulating Golden Bake on winning the Brand Development Award, Executive Director of Love Irish Food, Kieran Rumley said: “2019 was a strong year for Love Irish Food and we are proud to have helped all of the Love Irish Food brands increase their brand exposure and drive sales. We had the highest level of enteries for the award, a reflection of the importance of the award and the benefit to Love Irish Food members, especially during the uncertainty of Brexit. I’m delighted to congratulate Golden Bake on their award win and am looking forward to seeing what the brand will accomplish in 2020.”
Antoinette O’Callaghan, Marketing Manager, Exterion Media, said: “The Brand Development Award is hugely important to us at Exterion Media and it’s always a fantastic opportunity for an Irish brand to increase their promotional efforts. Golden Bake has an amazing local brand story to share and we are excited to see the campaign come to life early this year.”
The Brand Development Award was launched by Love Irish Food in 2012 The award was established to help locally produced brands establish and distinguish themselves in the Irish market.
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