2,800 prescheduled meetings to develop new business leads Date: 09/02/2010 Buyers with purchasing power of €85 billion attend Marketplace Ireland
“The prospect of a return to growth in the global economy this year and the recent strengthening in sterling provide the critical backdrop for a renewed export drive for Irish food and drink”, according to the Chairman of Bord Bia, Mr. Dan Browne. Speaking on the occasion of the Marketplace Ireland event which took place at the Croke Park Conference Centre on Tuesday 9th February, Mr. Browne continued: “Following an exceptionally challenging year in 2009, when exporters encountered the most difficult marketing environment in recent memory, growth in food and drink exports is set to resume, from their current level of over €7 billion, in 2010”.
Over 300 international buyers engaged in over 2,800 pre-scheduled meetings, speed dating style, designed to build new business relationships with 150 leading Irish food and drink companies. The buyers, with a collective buying power in excess of €85 billion, represented some of the world’s key retail and foodservice operators including Carrefour, Costa Coffee (China), Sainsburys, Meduza (Croatia), Morrisons, Asda, Intermarché, TUS (Slovenia), Mercadona (Spain), Shanghai City Supermarket and Starbucks. Almost 100 Irish retail and foodservice buyers were also in attendance.
Speaking at the event the Minister for Agriculture, Fisheries and Food, Brendan Smith TD, said he was delighted to see so many buyers coming to Marketplace Ireland 2010 and so many Irish food and drinks companies determined to build business. “The food industry is deeply embedded in the Irish economy and draws on high quality natural resources produced in a sustainable way. The €7 billion in Irish food and drink exported in 2009 under exceptionally difficult conditions demonstrates the commitment of Irish food and drink companies to markets overseas and their level of ambition. Bord Bia’s planning has been directed to maximising the benefit of Marketplace by closely mapping buyer and supplier interests. Each contact and sale is valuable to us as meeting and exceeding customer requirements is key to our strategy of extending market reach and deepening positions on existing markets.”
Food and drink buyers from 27 countries, including the UK, Continental Europe, Russia, North America and China will allow Irish exporters seek out new market opportunities and broaden their export reach. “In 2009, the industry increased its share of exports to Continental EU markets, principally to the eurozone, to 34 percent. The wide, regional spread of buyers attending Marketplace will facilitate continued market diversification in 2010”, according to Aidan Cotter, Chief Executive, Bord Bia. “Meanwhile, the improvement in sterling will provide much needed breathing space to exporters to the UK, which last year still accounted for 43 percent of total food and drink exports”, Mr. Cotter added. “Those suppliers who have most improved efficiencies in the face of the sharp depreciation of sterling will be best positioned”, he said, noting that some 100 buyers attending Marketplace were from the UK.
More than 150 buyers were from Continental Europe, predominantly from eurozone markets such as Germany, France and Italy while there was also a significant presence from Eastern Europe. The relative competitiveness of Irish suppliers to these markets will be enhanced by any efficiencies generated as firms strive to compete in the sterling area. This will be particularly important for prepared foods exporters who have been heavily reliant on the UK market, while Irish beef, dairy and beverage exporters have continued to make good progress in penetrating Continental European markets. In addition to a particularly strong representation of European buyers, eleven representatives from leading Chinese retail and foodservice companies travelled to Marketplace Ireland, including Aramark, the catering contractor for the Beijing Olympics in 2008 and for the upcoming Asian Games being held in China later this year. Food and drink representatives from the Shanghai based City Shop, the leading retailer for specialist high-end food and beverages, also attended. During their time in Dublin, almost 120 of the attending international buyers participated in guided store tours, examining Irish foodservice, multiple retail and premium outlets. Bord Bia will also accompanied a group of Irish farmhouse cheese buyers and a number of seafood buyers from Russia and Spain on customised site visits to meet Irish food companies and examine their production facilities. Bord Bia has put a comprehensive and rigorous follow up plan in place to assist companies convert the opportunities arising at the event to business. Companies have been asked to complete a meeting report after each Marketplace meeting signalling the follow up actions agreed. Any potential challenges or required support will be identified at this early point. Bord Bia will follow up with each company individually over the next six weeks to monitor progress and an account plan will be developed for each to ensure that they are best positioned to achieve the maximum amount of business from the event. Marketplace Ireland is one of a number of initiatives underway by Bord Bia designed to assist the food industry broaden its export reach and position itself for an upturn in the marketing environment. Later this month, Bord Bia will host thirteen Irish companies at BioFach 2010, the world’s largest and most prestigious organic food fair in Nuremberg, Germany. Biofach, which takes place from 17th – 20th February, is the most important trade event for organic food in the international calendar, with close to 50,000 trade visitors from over 120 countries expected to attend.
Throughout 2010, Bord Bia and over 115 Irish food and drinks companies will participate in a number of key international trade fairs including Gulfood, Dubai (February 21st – 24th); Foodex, Japan (March 2nd -5th); Tavola, Belgium (March 14th – 16th); WSWA, USA (April 6th – 8th); Club de Gourmet, Spain (April 12th – 15th) and in May Bord Bia will participate at SIAL Shanghai, China’s leading food and beverage trade show, with Irish companies actively looking to enter the market. To help further boost Irish food and drink exports, Bord Bia’s Marketing Fellowship programme, initiated in October 2009, sees twenty five experienced graduates currently working across 13 overseas markets, from New York to Shanghai. The fellows are undertaking 168 commercial assignments to support some 113 Irish companies expand their market reach.
Trend Zone – Knowing Today’s Consumer Complementing the intensive business focus of the event, participating Irish companies have been given the opportunity to profile key elements of their product range. In all, 166 products from 100 Irish food and drink companies were displayed for the visiting buyers in a specially conceived Trend Zone, distributed across six consumer trend categories. According to Bord Bia, knowing and understanding consumers or end users allows companies to better predict and prepare for consumers’ future needs and wants. Consumer trends help companies be more outward-looking, future-focused and act as a catalyst for new thoughts and ideas. Today’s volatile environment means that understanding the consumer has never been more important. The Futures Company, a research consultancy, in conjunction with Bord Bia awarded six products deemed to be “Best on Trend” (listed in Notes to Editor) and Natures Best’s Salad Shakers range were awarded the overall Best New Creation Award, chosen by the judges as the most innovative, inspiring and creative entry.
Ireland’s Largest Indigenous Industry The agriculture and food industry plays an important role in the Irish economy and remains its largest indigenous sector accounting for almost 9 percent of employment and 10 percent of exports. As much as 65 percent of manufacturing exports by Irish-owned firms are estimated to consist of food and drink. The long-term outlook for the sector, with its high export orientation, remains positive.
A sustained decline in the value of sterling combined with the economic downturn and severe difficulties in the global dairy market created unprecedented challenges for Irish food and drink exporters in 2009. The underlying performance of the industry, reflected in an estimated volume decline of just 3 percent, was impressive when set against these challenges. The value of Irish food and drink exports declined by 12 percent last year, or by just under €1 billion, to stand at €7.12 billion.
