Friel leaves behind a strong Kerry legacy
Friel succeeded Denis Brosnan in 2002, the first boss of the business started in that now legendary caravan in Listowel, in early 1972.
‘Humble beginnings’ would be an under statement — but there was nothing humble about the ambitions of Brosnan, Friel or Denis Cregan, the current deputy chief executive, and others who joined the group.
As he reflected yesterday on his time with the group, Friel remembers the “Can Do Culture” that existed.
There were no difficulties only opportunities as far as they were concerned.
They had, of course, youth on their side. At 27 Brosnan was one of the youngest chief executives anywhere, while Friel was just six months older.
Brosnan was hired in November 1971 and by April the following year he had many of the key people who formed the basis of the executive team on board.
The site at the time was in an awful state. Remembering, Friel said that against all odds, by the end of the first year the fledgling business had generated sales of £1million and made a profit of £100,000, which they followed with profits of £250,000 the following year.
Progress was rapid.
Financial support from Northern Bank Finance Corporation, which put up £200,000 to get the business off the ground, was crucial said Friel.
Kerry farmers were very supportive too, he recalled fondly, and they weren’t shy too dip into their pockets when asked.
They underwrote that loan and the following year they paid the state £1.15m for the Dairy Disposal company that gave the group a further huge push forward.
This was a time of huge change in Ireland as the formation of the EU beckoned and Friel and Brosnan were there, along with many others, to ensure that Kerry farmers would have a proper outlet to exploit their dairy output, not just nationally — but internationally too.
The formation of the co-op in 1973 became the launch pad of Kerry Group in 1986.
In between that period, exploiting EU and world markets through Bord Bainne, Kerry had targeted North America for its casein, which was used as the basis of flavourings for a whole range of food products, even back then.
That business developed in tandem with the rest of Kerry’s emerging operations and the tracking down of Beatreme Food Ingredients, for which Kerry paid €130m was hugely important because it gave Kerry a huge hold in that rapidly evolving segment of the food sector.
At the time, Friel remembers that this was a leveraged buy-out on a grand scale.
It was such an audacious move and one that really launched Kerry’s global ingredients business, and that made it the dominant player in that market with a 14% share.
For Friel it was one of the key defining moments — even if he had the headache of finding the money to fund the deal.
Looking back, while there have been may crucial moments, he regards the flotation of the group and the Beatreme acquisition as pivotal.
In his comments on the group’s future, when he presented the group’s results to the media for the last time yesterday, he said both the short and medium term prospects for the group were good.
While 2006 is probably a year Friel would prefer to forget, 2007 is looking much more positive.
Indeed the reaction of the markets to yesterday’s results suggest Friel has left the Kerry Group legacy he helped create, very much intact.
