To enhance its existing distribution structure, the company has signed a distribution agreement with Chinese company, Algrow Trading Company, based in Beijing, to distribute its range of products in major urban centres including Xian, Zhengzhou and Wahan which will strengthen its regional distribution network.
Board chief executive Kevin Lane said that the distribution deal would help grow the Kerrygold market share in China.
“Our distribution partnership with Algrow Trading Company allows us to extend our footprint in China. This increased market reach, along with the expansion of the Kerrygold product portfolio and focused investment in developing our brand presence in China, will further develop our position in the premium Chinese consumer foods dairy market.
“Premium quality dairy products remain a specialist category and capitalising on the increasing demand in this segment from the emerging Chinese middle class forms part of our ambitious international expansion plans.”
The announcement forms part of the IDB’s participation in a trade mission to China this week. The Minister for Agriculture, Food and the Marine Simon Coveney, speaking at the launch in China, welcomed the further development of the Kerrygold brand in this key strategic market for Irish dairy exports.
To date, the premium range of Kerrygold Irish butters and cheese is sold in the cities of Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu and Hangzhou with a combined population of over 150 million. The expansion will advance the IDB’s pan distribution plans.
Kerrygold UHT Milk will be rolled out in each of these regions. The UHT milk market is valued in the region of €8bn with imports accounting for 10% of this.
Kerrygold was first launched in Beijing in 2008 and has shown steady growth with a doubling of sales last year.
The IDB is Ireland’s largest exporter of premium dairy products and a leading international food company with a global footprint in over 80 countries. It has annual sales in the region of €2bn. The business employs over 3,700 people globally.