Green shoots for food suppliers
The increased spending is seen by Retail Ireland as a sign of a recovery in a retail economy where turnover fell by almost 25% between its peak in 2007 and a low point last year.
Thomas Burke, director of Retail Ireland, the Ibecgroup whose members employ 350,000 people in 3,000 outlets countrywide, said the sector has had some very tough years, but there is now cause for cautious optimism.
The indications that Christmas 2014 is likely to be the best for the retail sector since 2009 follows the news that 200 small food producers will secure retail listings worth €10m with SuperValu, through the Food Academy programme next year.
Food Academy is a joint initiative between Bord Bia, the Local Enterprise Office Network and SuperValu to support small food companies in Ireland.
Agriculture, Food and Marine Minister Simon Coveney, speaking at the launch of the initiative last year, described it as a unique opportunity for ambitious food entrepreneurs looking to build sustainable businesses.
“Small food businesses play an important part in Ireland’s agri-food sector by enhancing our reputation for dynamic, sustainable, and quality food, as well as providing employment and revenues of €475m per annum,” he said.
In a more recent address at the Food Academy conference in the Royal Hospital, Kilmainham, Dublin, he said Food Harvest 2020 has identified the long-term potential of the Irish agri-food industry to support ‘smart, green growth.’
Ireland’s artisan food producers are making a valued contribution to this growth.
“Structured support from Bord Bia and Local Enterprise Offices, in partnership with SuperValu, will ensure that high- potential food entrepreneurs can scale their businesses in a sustainable manner, creating jobs and furthering Ireland’s credentials as a food leader both nationally and internationally,” he said.
Thirty high performing small food companies will also graduate to the next stage of the programme, Food Academy Advance, which will provide them with access to expertise in branding, market research, business development and distribution, to allow them to scale up and secure national listings with SuperValu.
This combination of commercial and marketing insight assists in supporting producers through the challenging initial phases of business growth and strengthens their chances of future success.
Meanwhile, the results of a research study shows that almost 85% of Food Academy participants expect to employ new staff over the next 12 months, with almost a quarter expecting to take on more than three people during this period;
Almost half of the participants expect sales to increase by 50% or more over the next 12 months. About 70% of small food producers expect to launch new products during the period.
Some 98% of participants found the Food Academy programme beneficial to their business development. Gaining access to finance is their number one priority. Almost 80% of companies participating on the programme plan to develop their brand through social media.
SuperValu managing director Martin Kelleher said the group is committed to supporting local suppliers and building vibrant communities around Ireland.
“We are delighted to be able to work hand in hand with budding artisan food producers, providing them with the opportunity to trial their products in local SuperValu stores initially and then grow their partnership with us as they scale their business and supply more of our stores, creating local jobs in the process.
“As SuperValu stores are independently owned and operated, our retailers are perfectly placed to support suppliers in scaling their business at a sustainable pace.
“At the same time, it allows our retailers to provide customers with a tailored local offer, stocking products which you cannot buy in other supermarkets,” he said.
Bord Bia chief executive Aidan Cotter said its role in this partnership has been to design products for entrepreneurs to allow them to thrive in an environment that looks to support local.
He said the Irish consumer is discerning and has in recent years grown to seek out and support local products and companies.
“The Food Academy model uniquely facilitates the promotion of these entrepreneurs to consumers in every county in Ireland, while equipping these young food companies to be consumer focused from the outset and to grow at a sustainable pace,” he said.
Local Enterprise chairperson Vincent Reynolds said the Food Academy provides a cohesive, structured support system for local food producers, to help them grow their businesses sustainably.
“It is an example of government agencies and the private sector working together to create the right environment for food entrepreneurship in Ireland,” he said.
SuperValu serves over 2.6 million customers every week and has 223 stores. A total of 75% of everything on its shelves is sourced or produced in Ireland.
The group says it purchases almost €2bn worth of goods from Irish suppliers which help to sustain 30,000 jobs in the economy.
