Food companies need open communication with consumers
Bord Bia advises Irish suppliers, when dealing with their customers, to know their product and associated costs inside out, and aim to be as specific as possible about the impact of rising costs.
As increased costs across the agri-food supply chain put the viability of many of our Irish producers at risk, Bord Bia tells us that it is critical that it has targeted supports in place to assist producers through these challenging times.
Recently, Bord Bia hosted a four part webinar series to inform Irish companies on how best to navigate cost inflation. Over 180 companies attended the webinar series which covered topics including:
- Procurement in crisis mode.
- How to manage and mitigate rising costs and how suppliers can best prepare for negotiations.
- Managing unprecedented inflation through price increase campaigns (in partnership with Enterprise Ireland).
- How Irish consumers are navigating the cost of living crisis.
We asked Fiona Twomey, a retail specialist with Bord Bia, to outline her advice to companies on how important it is for them to remain relevant and connect with consumers.
“Our message to companies is to understand and know who their target consumer is and the likely level of impact inflation is having upon them – as not everyone will be feeling it in the same way,” she said.
“Once a company understands this, they can adapt their tone accordingly to ensure their messaging remains relevant. In other words, don’t be tone deaf or don’t miss an opportunity to connect with your consumer. We also advise companies to remind consumers of the value of their product – whether that be from a sustainability, authenticity or quality perspective.”
Bord Bia is in frequent contact with Ireland’s leading grocery retailers who have leaned into these conversations over the past year as we look to understand how different categories are being impacted by inflation.
To help suppliers prepare for engagement with their retail customers it is important they understand the buyer perspective and the type of conversation that needs to be had to reach a successful outcome.
A bespoke negotiation skills development service was introduced in early summer, and by year-end, it is forecast that this will have supported almost 60 Irish food and drink companies as they prepare for customer conversations. As a result of this engagement, Bord Bia was able to work with suppliers to better inform their preparation and give them the best chance of reaching a positive outcome with their customers.
“The advice we would give Irish suppliers when dealing with their customers is to know your product and associated costs inside out. Aim to be as specific as you can about the impact of rising costs. Demonstrate where you have already made an effort to mitigate and provide the buyer with the information they need in order to make a decision,” says Fiona Twomey.
“Collaborative solutions are possible but it is important that suppliers show up to these meetings prepared and ready to speak about their individual business. Open communication and transparency is critical.”
In response to the continued rising energy and animal feed costs, Bord Bia launched a new intensified consumer advertising campaign in the Ireland market to encourage shoppers to buy more quality-assured food and — in doing so — to help secure the future of quality-assured farmers and producers.
At a time of rising food prices, the campaign aims to remind shoppers of the important role that quality-assured farmers, growers and producers play in delivering the best of quality assured food to them.
Themed ‘The Power of Your Food Choices’, the campaign consists of radio, outdoor and social media advertising and aired for eight weeks during the summer and early autumn.
Bord Bia continues to invest in insight to support Irish food, drink and horticulture businesses.
Towards the end of the year, Bord Bia will release a study designed to support companies with up-to-the-minute insight on dealing with inflationary impacts.
The study will provide food companies with a clear set of guidelines to bolster their business in the face of a very challenging economic environment.
