Bord Bia and Tesco Assist Companies to Grow at Retail Level
Bord Bia and Tesco develop a retail programme for Irish food and drink companies
04 April 2012
4th April 2012 Bord Bia and Tesco have developed a programme, to help food and drink companies to develop the required skills to achieve sustainable growth at multiple retail level. At the launch today, in Bord Bia’s Dublin headquarters, the participating companies were joined by Bord Bia and Tesco representatives.
The Minister for Agriculture, Food and the Marine, Simon Coveney TD who was in attendance, added, ‘I am pleased to be launching this programme, this form of cooperation is something which will drive this sector forward both at home and abroad. Tesco plays a large part in the current retail environment and so it is essential to work together.’
This comprehensive retail programme will equip participants with the necessary skills required to secure, grow and maintain a listing with Tesco. The programme will involve three different levels Local, National and Export to assist small, medium and large sized companies in growing to the next level of business with Tesco. This programme will be supported by Enterprise Ireland.
Aidan Cotter, Chief Executive, Bord Bia stated at the launch, ‘The Irish food industry is experiencing strong growth in export markets yet the domestic market remains challenging, with spending under pressure and consumers searching for value. Based on Eurostat data, food prices in Ireland today are just 3 to 4 per cent above their level of seven years ago. By comparison, in the euro area as a whole they have grown by 15%, and in the UK by as much as 35%, a period moreover of strong commodity price inflation. It is vital in this environment that Irish food and drink companies work with the retail sector to build their competitiveness on the domestic and export markets alike. This programme with Tesco is designed to arm the participating companies with the insight required to have success at home and the opportunity to expand abroad.’
Sixteen companies covering the dairy, seafood, ready meals, beverage, frozen and ambient sectors have been selected to participate on the programme. Clear objectives and targets will be set for each company partaking to help them achieve key opportunities identified for their business with Tesco. The programme will consist of workshops, bespoke mentoring and access to relevant Tesco consumer data and consumer insights.
Tony Keohane, CEO, Tesco Ireland said, ‘At Tesco, we are long and committed supporters of the Irish food industry. Today’s initiative continues our desire to source local products, particularly fresh foods, which have always been a key part of our strategy and a cornerstone of our business. We hope that as many as possible of the programme participants will grow with us to become Ireland’s next generation of food entrepreneurs and exporters.’
The Irish Retail Market
The Irish grocery market is valued at €8.8 billion. The latest figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 18th March 2012, show the grocery market has slid back into decline following four months of modest sales growth. The latest data show that the sector has fallen in value by 0.5% when compared with the same period last year. Shoppers, according to Kantar, are continuing to look for ways to control their spending. This is reflected in growing pressure on branded items, which have seen a drop in market share from 54.1% to 52.9% in the past year. The Irish retail market is increasingly competitive with new format development, technological advances, such as contactless payments and private label all impacting on its development.