Supporting the Irish Economy

Supporting the local economy and working with the Irish food and agricultural industry is a core value for Tesco Ireland. We are committed to sourcing local products where possible.

Our commitment to supporting the Irish economy on a national and local basis has been central to our development in Ireland. We are the largest single buyer of Irish food products in the world and Tesco stores outside of Ireland are the second biggest buyers in the world of Irish food and drink. They even eclipse France, which has traditionally been Ireland’s second biggest food and drink export market.

According to an independent report published by Indecon Economic Consultants in 2012, Tesco is worth €2.7 billion a year to the Irish economy. Exports to Tesco International stores amounting to €705.8 million now represent 9% of overall food and drink exports from Ireland. The report also found that Tesco is the biggest exporter of Irish beef exporting €177m worth in 2010. Dairy and horticulture exports to Tesco also accounted for €178.2m and €51m in 2010 respectively.

Supporting the local economy

Tesco has also pioneered innovative programmes to foster entrepreneurial development in the Irish food and agricultural sector. Developing export opportunities for Irish food in Tesco Britain is another priority for Tesco Ireland.

Tesco is one of the biggest private sector employers in Ireland employing 14,925 people, with 6,625 new jobs have been created as a result of our investment in Ireland since 2000. An additional 29,000 jobs are supported in firms supplying their products to Tesco.

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Supporting Irish Suppliers & Growers

Tesco Ireland is committed to buying local and supporting Irish suppliers. Over 400 Irish food and drink companies supply to Tesco, and approximately 300 of these represent small food suppliers employing less than 50 people. In addition, over 11,000 farm families supply their produce to Tesco.

Every drop of our fresh milk* is from Irish farms, as is 100% of our fresh beef, fresh lamb and fresh pork, while 70% of fresh seasonal produce is sourced from Irish farms. Working with local growers, we have helped replace previously imported onions and peppers during the Irish growing season We have also worked with the Certified Irish Angus Producers Group promoting and selling fresh Irish Aberdeen Angus Beef.

*excludes Organic milk

Supporting Irish Suppliers
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Local Supplier Programme

Customers increasingly want products that contribute to the local economy and local suppliers. Our Local Supplier Programme encourages local suppliers to provide high quality produce to Tesco stores in their locality. The programme is already active in counties Wexford, Tipperary, Offaly, Cork, Galway, Wicklow, Kildare, Limerick, Mayo, Waterford, and Clare. We now give more shelf space at a local level to local suppliers, who are highlighted in store by their county colours displayed on hanging boards and dividers. Countrywide, our local Tesco Roadshows provide the perfect opportunity for small, local suppliers to meet with, and talk to our buyers and technical team. In 2011, 50 new small local suppliers started supplying their products to us as a result of our roadshows.

Local Supplier Programme

In 2012, Tesco Ireland and Bord Bia launched a jointly-developed programme to help companies in the dairy, seafood, ready meals, beverage, frozen and ambient sectors build up the skills required to achieve sustainable growth at multiple retail level. We look forward to working with these companies in the years ahead.

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Nature’s Choice Growing Standard

In 2011 we recognised 18 of our Irish growers with the Tesco Nature’s Choice Growing Standard. Our Nature’s Choice Standard is a farm assurance scheme that recognises growers who show best agricultural practice while considering the environment. As part of the scheme we work extremely closely with our produce suppliers in Ireland to help them maximize their crops and quality while minimising the effect they have on the local environment.

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Ethical Trading

Ethical Trading

Tesco Ireland puts ethical trading at the heart of its operations by adhering to the Ethical Trading Initiative and making sustainable environmental impact a key business priority. Our core values are ’no-one tries harder for customers’ and ’treat people how we like to be treated’. As a mass-merchandise retailer, providing unbeatable value for customers means sourcing the best value products from around the world - at the best prices. This helps families stretch their budgets further, brings more products within the reach of ordinary people, and helps to drive economic growth and our own growth.

Achieving this involves sourcing from many different countries around the world - some highly developed and some less developed, with differing standards of regulation and enforcement. But treating people how we like to be treated means ensuring as best we can that our values and our standards apply wherever we source. So we require our suppliers to meet strict criteria on labour standards, and have an ethical trading policy that commits us to working hard to address and make progress on the challenges we face, both in Ireland and overseas. The policy applies to primary suppliers of our own-brand products, as well as all loose, unlabelled produce.

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Case Profiles

Brogan’s Bakery

BROGAN’S MUFFINS
Brogan’s Bakery – Suppliers to Tesco stores in Ireland and the UK

In 2007 we began to work with Brogan’s Bakery in Glenamaddy, Co.Galway to supply Tesco own-brand muffins to our stores in the UK, and a year later we signed a deal with the company to supply muffins to our stores here in Ireland.

Brogan’s Bakery supplies a whopping 80 million muffins to Tesco each year for our own brand range in a contract worth over €12 million.

In total Brogan’s Bakery supplies to over 2,100 Tesco stores here and in the UK – not a bad number for a company with just 80 employees!

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ABP Food Group

THE FINEST IRISH BEEF
ABP Food Group: Suppliers to Tesco stores in Ireland, the UK & Eastern Europe

In Ireland we work closely with ABP Food Group based in Ardee, Co Louth, who supply us with top quality Irish Angus beef. The company supplies us with beef for our stores not only here in Ireland, but also in the UK and in Eastern Europe.

Did you know that ABP supply us with all of our Tesco Finest pre-pack beef in Ireland, and also supply our Certified Irish Angus beef for our fresh meat counters? This meat is sourced from hundreds of beef farmers in locations all over Ireland.

ABP supplies beef for 14 Tesco Finest* pre-pack products, 16 Tesco Irish Angus counter products and 14 Tesco standard products.

ABP Food Group is one of our biggest Irish suppliers and they employ over 1,500 people nationwide.

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Celebrating our first Irish Food Supplier Expo

In 2011 we held our first ever Irish Food Supplier Expo where we showcased 35 of our new Irish suppliers who had begun to stock their products in our stores during the previous 12 months. The companies exhibited alongside 20 of our larger existing Irish suppliers who supply Tesco branded products for us.

The event, which took place at the Royal College of Physicians, Dublin, was attended by Minister for Agriculture, Marine and Food, Simon Coveney alongside Senators and TDs from right around the country. Our Irish buying team have handpicked our new suppliers over the past year and many were found through 2 regional road-shows which we hosted last October in Ashbourne, Dublin and in Limerick.

Irish Food Supplier Expo

Most of the new suppliers sell their products through our stores in their local region, some even supply us nationally. The enterprises we have begun working with come from right around the country and include Paddy’s O’Granola (Laois), Slievebloom Farmhouse Ltd. (Tipperary), Dee’s Wholefoods (Cork), Magnetti Brothers (Galway), Wexford Preserves (Wexford), Wicklow Farmhouse Cheese (Wicklow) and O’Donnell Crisps (Tipperary).

During the year, we have also worked with a number of our established Irish suppliers increasing the amount of products that they supply into our own label food ranges, including; Hilton Meats, Glanbia and Kerry Foods. Currently, over 100 Irish companies produce around 2,000 products for our own label food ranges here in Ireland and the UK.

Speaking at the Irish Food Expo, Minister Coveney said "If Tesco were a country they would be our second largest importer of food, second only to the United Kingdom. Tesco is a hugely significant player in the Irish food industry and I want to thank them for making the commitment today to Irish food."

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