Start-up sees seeds flourishing

Chia seeds were used as a medicine by the Aztecs. Now, Chia Bia, an Irish start-up, imports them from South America and sells them both at home and in Britain. Chia Bia’s founder claims they’re a superfood, writes Trish Dromey

Eaten by the Aztecs but forgotten about for hundreds of years, chia seeds have now been brought to Ireland by a small start-up company in Waterford, which goes by the name of Chia Bia.

Grown mostly in South America close to the equator, chia seeds are a rich source of Omega-3 and have been popular in the US for over 10 years. Demand for them has grown since health-conscious consumers became interested in foodstuffs providing minerals, vitamins, and Omega-3 fatty acids. This trend has led to the rediscovery of seeds, including the chia seed, which was used as a medicine by the Aztecs, according to Chia Bia co-founder Ray Owens.

The company’s other co-founder, Barrie Rogers, discovered chia seeds for himself while suffering from a back injury in the US in 2009.

“Friends suggested he try eating chia seeds to help reduce the inflammation. He did and he recovered,” reveals Mr Owens.

Impressed by the nutritional properties of the seeds, Mr Rogers — a financial consultant — began to explore their business potential and shared his ideas with Mr Owens, who previously worked in production and sales in the meat industry.

They bought in a small shipment of seeds, tested them on friends, talked to retailers, and visited a food show in the US where they met Dr Wayne Coates, a professor who had led the research into chia seed nutrition.

“He agreed to approve and supply stock for us, and to allow us to use his name on our packaging and this was a major coup,” says Mr Owens.

Using their own funding and a grant from the local enterprise board, the company set up operations at a 2,000 sq ft premises in Tramore Business Park. “We started selling milled and wholeseed chia seeds in packaging we had designed ourselves. Our main expense was to build a clean-room.”

Travelling the country to visit healthfood stores, Chia Bia’s founders succeeded in opening 150 accounts by the end of 2010. After that, they took on a distributor and one employee. During 2011, they took on a second employee, redeveloped the packaging, and developed three organic nutrient bars and a bread mix.

This year, Chia Bia took on a second Irish distributor, which helped the company move beyond the healthfood stores and into 35 Dunnes Stores outlets in March, and to secure a listing with SuperValu in the summer. Since 2011, the company has been exporting to Britain.

According to Mr Owens: “We supply 500 Holland & Barrett stores and sell to four or five hundred independent stores through a distributor.”

He estimates that the UK market accounts for close to 40% of the company’s sales.

Sales to a variety of other countries — including some in the Middle East and Eastern Europe — account for a further 15% of turnover. The business, which is based on chia seeds imported into Ireland from South America, is now targeting the North American market.

“We have started selling into the US and are looking at Canada,” says Mr Owens, explaining that sales have been built up by attending trade shows here and in the UK.

He believes that Chia Bia was the first company to introduce chia seeds to both the Irish and British markets.

Sales this year have grown 100% on 2011. Now offering eight products, including three nutrient bars, Chia Bia occupies a 5,000 sq ft unit, employs six full-time staff, and aims to achieve a further 100% growth this year.

Entering a market with a product which people were totally unfamiliar with has meant that the company has had to devote a sizeable portion of its funding to sales and marketing. But Mr Owens believes that chia seeds are now well on their way to achieving widespread recognition as “a superfood”.

“In 2013, we expect exports to grow to 80% of sales. We are now targeting the ingredient market and believe this will grow dramatically over the next few years,” he states, adding that the company has already supplied Brennan’s Bread with seeds for chia wholegrain bread.

By the end of 2013 he expects the ingredient market to account for 50% of sales. Over the next year, he aims to increase the workforce to 12 with a view to developing sales in Germany, France, Spain, and Canada.