New markets need new approach, says Bord Bia

LEADERS in the Irish food and drink industry were told yesterday that one of their biggest challenges is forecasting the future strategies of their retailer clients.

Bord Bia’s new chairman Dan Browne said building successful retail relationships will be critical to the future development of Ireland’s €8.6 billion export business in food and drink.

“Over past years retailers have re-invented themselves from being traditional merchants to sophisticated brand owners,” he said.

Mr Browne was speaking in Powerscourt, Co Wicklow, at the start of a Bord Bia leadership summit which sets out to provide new insights to interpret the future strategies of the industry’s major customers.

Global retail trends and retailer strategies which will impact on the future of food and drink retailing are the focus of a two-day event.

Speakers include senior directors from global market leaders including American retail giant Costco, brand leader Procter and Gamble and international retail thought leaders, RetailNet Group USA.

They stressed that understanding consumer trends, changing lifestyles and adapting the shopper experience accordingly were among the pre-requisites outlined for sustainable future growth for global retailers, which manufacturers need to embrace to secure their own future.

The need for retailers and manufacturers to be at the cutting edge of technology to target audiences increasingly immune to traditional marketing methods was also outlined. The rewards can be considerable as demonstrated by Costco.com sales, currently valued at $1.24bn, up from $76m in 2001

Bord Bia chief executive Aidan Cotter said the challenge for the Irish food and drink industry in this changing environment, and one which it is well positioned to meet, will be to demonstrate “the sustainability of its supply chain”.

“Recent Bord Bia research into alternative ‘food futures’ points to a need to focus on the concept of personalised nutrition and the emergence of consumers as ‘discoverers’ who will play an increased role in product design and the evolution of brands,” he said.

Mr Cotter said the ageing of the global population and new “affluence classes” in the Far East mark the arrival of new market segments with less predictable behaviour and needs.

“Convenient, easy-to-eat formats, providing real food that goes ‘beyond the sandwich’ will challenge food producers for the attention of the time-pressed but discerning and demanding consumers,” he said.