Germany offers potential for our food exports

FOR a lot of Irish food companies better and more effective use of the opportunities provided by the internet has the potential to boost their sales.

Research, focused on Germany, concludes that consumers in Europe’s largest economy are willing and able to interact online with businesses that deliver real value.

The report, compiled by Amárach Research notes businesses can use this cheaper, more direct channel, to that market on top of selling directly to its target consumers.

Germany is the third largest importer of Irish food and drinks in the world with exports estimated to have increased more than 20% during 2010, to stand at €365 million.

Earlier this year Bord Bia, the state backed promoter of Irish food, said beef, dairy products and beverages continue to grow in popularity.

Overall it said food and drink exports performed strongly last year, with total export sales increasing 11% to reach €7.9 billion.

Though still off the peaks achieved during the boom, sales of food and drink remain crucial in driving the country’s strong export performance.

That will continue to be the case, indeed has to be the case this year, as this country looks to beat its current difficulties through export-led growth.

The performance of the food sector was also boosted by rising global prices for most agricultural commodities and by a lift in our relative competitiveness, Bord Bia said.

Dairy exports to Germany in 2010 increased by 46%, driven by the success of Kerrygold, which accounts for 13.5% of the total German butter market. Sales have been boosted by the introduction of the spreadable butter product Kerrygold Extra in 2009.

Irish beef is also popular with German consumers. Exports achieved a remarkable 110% increase to August 2010. Irish beef is widely available in stores such as Rewe, Real and Karstadt and featured on the menus of Blockhouse and Maredo restaurant chains.

Beverage exports, including brands such as Guinness and Tullamore Dew, are also estimated to have increased by more than 8% in 2010.

Furthermore, the research confirms that German people are well up on and well disposed to Irish food and drink.

One third of Germany’s 82 million consumers look positively on Irish goods, and would like to purchase more, the survey found.

The research also showed 30% of Germans hold a positive view of Irish products.

On that basis the report recommends that goods should be clearly branded as “Made in Ireland”, to make a clear distinction between them and British and US goods, that do not have the same status in the minds of the German consumer.

It found Kerrygold, Baileys and Guinness are the top three most popular Irish brands in Germany, with three out of four people having heard of these products and 60% have at some stage used Kerrygold, 55% Baileys and 34% Guinness.

Another key point to emerge from the survey is that Germans think no less of us despite having to go cap in hand last November to Europe and the IMF to avoid financial meltdown.

It also stresses the underlying reality that Irish businesses can sell into a market the size of Germany with no exchange rate risk, something that has never been fully exploited, the report points out.

In all, 1,000 German consumers aged over 16 were surveyed by Amárach Research in an effort to help identify opportunities for Irish brands and businesses targeting the most successful economy in Europe.

Another key point that offers comfort to those in or targeting the German market is that consumers there are confident about the future, with 43% saying they expect the economy to continue growing.