Kerrygold butter hits record sales levels of €316m in Germany
The figures far outstrip the Irish Dairy Board’s own predictions for the year. As part of its 40th trading anniversary celebrations last September, the IDB had projected €280m annualised 2013 sales for Kerrygold butter in Germany.
Gisbert Kügler, IDB general manager for Germany, said several German retailers had run pre-Christmas Kerrygold promotions. The board aligns the record seasonal sales to German consumers choosing to buy a quality brand at that time of year.
However, that German preference for Irish butter is not just a seasonal feature. Kerrygold is the number one butter brand in Germany, with an overall market share of 17%, and a share of over 50% of all branded sales — excluding the cheaper own brand products.
“This €316m in sales equates to over 200 million packs of butter in over 23,000 outlets each year — enough butter to stretch 15 times from Dublin to Berlin,” Mr Kügler said at the annual general meeting of the German-Irish Chamber of Industry and Commerce in Dublin last night.
“We had a fantastic year. Our sales performance was outstanding. We did all the right things with both the retailers and our customers. In particular, we had a tremendous December.
“The sale of 6,000 tons of butter in three weeks — it was the first time in history that ever happened.”
Last year, the IDB invested €10.5m in a state-of-the-art facility in Germany. This plant produces Kerrygold Extra, the spreadable product also enjoying steady sales growth in Germany.
Mr Kügler said the dairy board has been using lessons learned from the success of Kerrygold in Germany to help develop other markets for Irish butter.
“We are in constant discussions with our colleagues in other markets.
“Each market is unique, but I would hope that this success can be repeated elsewhere.”
The Kerrygold brand was first launched in a handful of stores in Germany in 1973, the year Ireland joined Europe’s common market. The IDB now employs more than 110 staff in Germany.
Recent IDB product launches include butter with sea salt crystals packaged in an upside-down tub, Butterkäse, a mild creamy breakfast cheese developed for the German palate, and Kerrygold Bratcreme, a liquid butter and rapeseed oil blend used for cooking.
IDB chief executive Kevin Lane said the business model in Germany has been based on developing a solid understanding of the consumer. The board has invested heavily in research into consumer insights.
“We have learned that above all else, in terms of food, Germans value quality of ingredients and quality of product,” he said.
“Today, many German consumers refer to Ireland as the Garden of Europe and have a strong emotional connection with the Kerrygold brand which is underpinned by its Irish origin and personality.”
