Star Rentals 'Summer Deal' Ulster Grocer Full Page Ad Final 14/06/2017 12:01 Page 1
• Car vans up to 7T panel vans • 7.5T trucks with choice of body • 18T artics and tractor units • Refrigerated vehicles • Short and long term contract hire • Last minute coverage for breakdowns and extra loads • Open from 7am
Contact Star Rentals today
Tel: 028 9083 2232 Email: enquiries@star‐rentals.com www.star‐rentals.com
TOP 25 LOCAL FOOD & DRINKS COMPANIES
MIGHT OF MOY PARK CONTINUES IN THE TOP 25 • DAIRY SECTOR CONSOLIDATION CLEARS WAY FOR NEW ENTRANTS • HENDERSON WHOLESALE MOVES UP TO NUMBER THREE
P
oultry, meat, dairy and alcohol are the standout categories in this year’s Ulster Grocer Top 25 Local Food & Drinks Companies, while the Henderson Group continues to ascend the ranks as the leading local grocery supplier and retailer. This latest edition marks the fifth year of the Ulster Grocer Top 25 compiled by Dun & Bradstreet, ranked by turnover with additional data also provided for pre-tax profits, net
worth and employee numbers. Only companies filing their annual accounts in Northern Ireland are included in the listing, which offers a unique picture of the diverse local agri-food, drinks and grocery sector. The 2017 listing has seen a greater degree of jostling for position than in previous years, with only five companies retaining the same position as the 2016 listing; among them of course Moy Park in the top
position. Consolidation has, meanwhile, resulted in a number of dairy companies dropping off, due to new financial reporting practices, allowing Northway Mushrooms and Avondale Foods to gain listings. Jonathan Cushley returns again this year, to explain the in and outs, and ups and downs, of the Ulster Grocer Top 25 on p33.
A WELL PLACED AGRI-FOOD AND DRINK PROCESSING INDUSTRY 2
BY JOHN HOOD, DIRECTOR FOOD & DRINK, INVEST NORTHERN IRELAND
017 continues to build on the very successful Year of Food & Drink, and our industry remains focused on promoting local companies and their products at home and abroad. Moy Park’s listing as Northern Ireland’s largest food business highlights the contribution the poultry industry makes to the overall performance of Northern Ireland’s food and drink industry and, together with Dunbia, Foyle and Linden, shows the importance of meat processing to Northern Ireland. Indeed, with the entrance of Cranswick as a new name in processing to Northern Ireland, the future of our meat industry looks bright. Likewise, Dale Farm, Lacpatrick (formerly TMC Diaries), Lakeland Dairies and Greenfields all contribute to a valuable dairy industry trading globally; a fact recognised by the decision of the World Dairy Summit to bring their global event to Belfast in 2017. Northern Ireland’s reputation as a country that takes taste, quality and food provenance seriously has continued to build momentum in 2017, with its food and drink businesses becoming ever more visible and ambitious in taking their products to growing world markets. From Hong Kong and Singapore to Dubai and the United States, Northern Irish food businesses are seeking to secure their home markets whilst looking to new and growing overseas
“Northern Ireland’s reputation as a country that takes taste, quality and food provenance seriously has continued to build momentum in 2017.”
markets. Among the developing products is Irish whiskey, which is now widely recognised as one of the fastest-growing food and drink sectors in the world. The performance of Bushmills and Diageo reinforces the growth of this industry. Combined with the many small distilleries, beer and ale brewers, and cider operations starting up and expanding across Northern Ireland, this sector promises much for the future. Invest NI, Northern Ireland’s business development agency, has an expanding global network designed to support Northern Irish businesses which are keen to explore new opportunities. That, coupled with the provision of in-market expertise and resources should help drive the Northern Irish food and drink industry towards further growth in international premium markets. Northern Ireland produce is desired and much sought after in the UK and Europe, and the priority must be to find markets to sell our food and drink, where we can secure the best value and balance the range of products we have. Both challenge and opportunity remain and I am confident that, through working together, our agri-food and drink processing industry remains well placed and firmly committed to meet the challenges and avail of the opportunities head-on.
31
TOP 25 LOCAL FOOD & DRINKS COMPANIES
GOLD STAR SERVICE FROM STAR RENTALS STAR RENTALS CAN HELP KEEP YOUR BUSINESS MOVING, SAYS FLEET CO-ORDINATOR KEVIN GLACKIN
S
tar Rentals is Northern Ireland’s largest commercial vehicle rental agency. Whether you need extra capacity for your business during busy periods, have vehicles off the road or wish to free up capital through contract hire, Star Rentals can help to keep your business moving. Star Rentals offers customers a complete weight range of vehicles starting with small car derived vans to 18T lorries and even Tractor units. The fleet also caters for specialised use, such as refrigerated vehicles, suitable for transporting both 32
chilled and frozen foods, Kevin Glackin, Fleet Co-ordinator explains: “We are constantly striving to expand and this summer we are offering all new customers an exceptional deal of 20% off their first rental from 1 July – 30 September. The offer is extended to those who have not rented from the company for over two years as we would love to see some of our old customers return.
company NI Trucks, meaning all of our vehicles are maintained and serviced to a high standard.”
“Based in Mallusk we are extremely handy to the M2 motorway. As well as offering competitive rates and a friendly service, we share a site with our sister
For more information, or to avail of the summer deal, please contact Kevin Glackin on 028 9083 2232 or email kevin.glackin@star-rentals.com.
Whether you require a vehicle for a single day or a long-term contract hire, Star Rentals can provide flexible, competitively-priced, tailor-made packages to suit your company’s specific requirements.
TOP 25 LOCAL FOOD & DRINKS COMPANIES
TOP NORTHERN IRELAND GROCERY COMPANIES SEE PROFITS RISE
BY JONATHAN CUSHLEY
T
he 2017 edition of the Ulster Grocer Top 25 Local Food & Drinks Companies (now in its fifth year) shows a challenging set of financial sales results for the Province’s largest trade companies. Turnover year on year has shown a decrease of 5.2% whilst, positively, profit within the Top 25 companies has risen by an impressive 7.4%. The Ulster Grocer Top 25 utilises the latest results filed for Northern Irelandregistered or headquarter domiciled companies - all businesses have filed accounts relating to either 2015 or 2016. TURNOVER Since the inception of the Top 25 listing, turnover has been used as the key identifier of performance – turnover/sales, in conjunction with profitability and shareholder value are imperative to companies when measuring ongoing performance. This year’s Ulster Grocer Top 25 listing saw turnover decrease from £6,296m to £5,969m; a decrease of some 5.2%. Interestingly, whilst a couple of Top 25 companies had significant decreases in turnover, the majority (14) actually saw a decrease in sales. This figure has increased from 10 in the 2016 listing and reconfirms that economic challenges still prevail in the sector. Moy Park continues to retain its number one position, having posted sales of over £1.4bn. From 2015 to 2016, Diageo Northern Ireland showed a significant decrease in turnover from £122.4m to £63.5m – the decline in sales is mainly due to the disposal of certain brands and a reduction in spirit volumes. PROFITABILITY The success of a business cannot be considered solely on top-line sales growth; the generation of profit is key to enabling businesses to invest in their future. This year’s Top 25 saw profitability increase by a very impressive 7.4% from £135m to £145m; interestingly the combination of the
companies equates to profit/net worth as a percentage – 15.3%. Inventory turnover defined as turnover/tangible net worth: this volume ration indicates how many sales pounds are generated with each pound of investment for the latest financial year and is 6.28.
reduction in turnover and the increase in profitability actually generated a 2.4% profit margin – up from 2.1% in the prior year. This result is extremely encouraging; in the 2016 listing, profits were flat year on year and, with the drop in turnover already commented upon, the profitability of the companies shows strong leadership acumen and cost management. Five of the companies within the Top 25 listing showed losses for their latest financial year, up one on the previous year. The largest profits reported came from Moy Park ltd (£35.7m), Old Bushmills Distillery Company Limited (£30m) and SHS Group (£21.1m). Special note should be made of Old Bushmills, showing a profit margin of 43.5%. Within the Top 25, profit per employee currently sits at £6,739 (with sales per employee sitting at £277,421). Interestingly both these figures show the Ulster Grocer listing to be slightly more productive than the Ulster Business Top 100 listing published in August 2016. NET WORTH (SHAREHOLDER VALUE) The third measure of a company’s performance is its value to its shareholders; in its simplest form this is measured by its shareholders’ funds (issued capital) + retained earnings – intangibles. The value of the Ulster Grocer Top 25 companies to their shareholders is £950.5m. Only one company within the listing shows a negative net worth. The shareholders return for the 25
READER NOTES • Comparisons have been made using the Top 25 2015 and 2016 final results. • A date of 10/6/17 has been used as a cut off for the inclusion of financial results within the Top 25. • Financial Information has been gathered using Dun &Bradstreet’s Credit Reporting tool and UK Companies Registry Office. 1. Fane Valley Co-Operative Society Ltd results exclude their share of turnover and profits from a joint venture. 2. Dale Farm Co-Operative Ltd was formerly known as United Dairy Farmers Ltd. 3. Musgrave Retail Partners Ltd (9) and Musgrave Distribution Ltd (15), both file individual Northern Ireland accounts. 4. Philip Russell Ltd (17) and James E McCabe Ltd (14) are both subsidiaries of Golf Holdings Ltd; they have been included as Golf Holding Ltd do not file consolidated accounts. 5. Diageo Global Supply (IBC) Ltd (19) and Diageo Northern Ireland Ltd (20) also both file individual Northern Ireland accounts. About Jonathan Cushley Jonathan Cushley, formerly senior manager with D&B (UK & Ireland), has compiled the Ulster Business Top 100 listing and provided commentary for 26 years, and the Ulster Grocer Top 25 for five years. About Dun & Bradstreet Dun & Bradstreet is e the world’s largest provider of business-to-business information. More than 90% of the Global 1000 rely on Dun & Bradstreet as a trusted partner to enable confident business decisions. For more information, please visit www.dnb.com. 33
TOP 25 LOCAL FOOD & DRINKS COMPANIES RANK
COMPANY NAME
ACCOUNT DATE LATEST (AS REPORTED)
TURNOVER (000’S)
TURNOVER (PREVIOUS YEAR)
1
MOY PARK LIMITED
31/12/2015
1,407,399
1,388,273
2
DUNBIA LTD
27/03/2016
787,512
826,523
3
HENDERSON WHOLESALE LIMITED
31/12/2015
420,559
412,941
4
SHS GROUP LIMITED
01/01/2016
379,408
374,007
5
DALE FARM CO-OPERATIVE LIMITED
31/03/2015
370,180
421,490
6
FANE VALLEY CO-OPERATIVE SOCIETY LTD
30/09/2015
357,345
429,628
7
FOYLE FOOD GROUP LIMITED
31/12/2015
297,214
289,340
8
HENDERSON RETAIL LIMITED
31/12/2015
294,151
300,599
9
MUSGRAVE RETAIL PARTNERS NI LIMITED
02/01/2016
257,445
281,417
10
COCA-COLA HBC (NI) LTD
31/12/2015
172,315
189,576
11
GREENFIELDS IRELAND LIMITED
31/12/2015
137,184
196,959
12
LAMEX FOODS EUROPE NI LIMITED
31/03/2016
136,652
153,054
13
TMC DAIRIES (N.I.) LIMITED
31/12/2015
99,653
126,081
14
JAMES E. MCCABE LIMITED
31/12/2015
95,252
93,717
15
MUSGRAVE DISTRIBUTION LIMITED
02/01/2016
93,176
99,174
16
LAKELAND DAIRIES (N.I.) LIMITED
02/01/2016
83,693
110,276
17
PHILIP RUSSELL LIMITED
31/12/2015
77,722
80,560
18
THE OLD BUSHMILLS DISTILLERY COMPANY LIMITED
31/12/2015
75,635
69,050
19
DIAGEO GLOBAL SUPPLY IBC LTD
30/06/2016
74,522
66,527
20
DIAGEO NORTHERN IRELAND LIMITED
30/06/2016
63,499
122,440
21
SAVAGE & WHITTEN WHOLESALE LTD
31/12/2015
62,976
63,569
22
SKEA EGG FARMS LIMITED
31/12/2015
61,678
61,029
23
DRINKS INC
31/03/2016
57,161
51,166
24
NORTHWAY MUSHROOMS LIMITED
31/12/2015
55,879
39,539
25
AVONDALE FOODS (CRAIGAVON) LTD
31/03/2016
51,110
48,924
GROWING RELATIONSHIPS THROUGH DATA 34
TOP 25 LOCAL FOOD & DRINKS COMPANIES PRE-TAX PROFIT (000’S)
PRE-TAX PROFIT (PREVIOUS YEAR)
NET WORTH LATEST (000’S)
NO. OF EMPLOYEES LATEST (AS REPORTED)
35,721
46,109
223,948
9,230
7,156
6,565
63,505
3,778
9,896
10,576
83,975
442
21,114
17,108
60,412
764
6,824
-714
39,748
1,087
1,536
6,765
74,754
N/A
3,028
-5,368
13,706
1,007
6,398
5,717
27,476
1,885
-2,574
-1,250
14,595
432
9,681
10,528
56,052
522
486
447
5,073
31
2855
2,911
7,245
6
-6143
-1,560
-7,979
52
2,383
2,034
44,160
549
-817
-286
561
186
240
308
-3,029
49
1,752
1,124
14,788
248
30,052
22,052
145,523
105
3,086
2,685
16,412
137
2,747
3,016
20,393
121
569
950
4,764
190
3,915
2,762
13,968
118
-115
1,159
9,354
112
-61
5
732
40
5,316
1,366
20,354
425
GROWING RELATIONSHIPS THROUGH DATA 35
TOP 25 LOCAL FOOD & DRINKS COMPANIES
LIFETIME ACHIEVEMENT AWARD FOR MOY PARK CHIEF
J
Richard McClean, managing director of the Belfast Telegraph, and Ulster Bank’s Richard Donnan present Janet McCollum of Moy Park with her award.
anet McCollum, chief executive of poultry processor Moy Park – number one in the Ulster Grocer Top 25 - received a Lifetime Achievement Award at a recent major business event in Northern Ireland. She was recognised in the Belfast Telegraph Business Awards, an annual event to celebrate Northern Ireland’s business achievements. The awards are sponsored by Ulster Bank. McCollum has been managing director of the company since 2014, and first joined as European accountant back in 1993. The poultry processor is Northern Ireland’s only £1bn-plus business and among the region’s the biggest employers. Moy Park is now one of the UK’s top 15 food companies, and part of the Brazilianbased JBS Group. The company exports poultry products worldwide. Headquartered in Craigavon, Co Armagh, the company employs 6,300 people in Northern Ireland and a total of 12,000, including its operations in Europe. It recorded pre-tax profits of £35.7m in 2015.
MOY PARK BBQ & ROAST RANGE CREATES A SIZZLE IN NI!
I
reland’s number one poultry brand, Moy Park, has secured listings across the NI convenience sector for its branded BBQ & Roast range. The three-strong range, which includes Sweet Chilli Chicken Thighs, Smoky Barbecue Chicken Drumsticks and Hot and Spicy Chicken Wings will be available in selected Costcutter and Nisa stores through Neil McMullan Ltd. Moy Park Interim Brand Marketing Manager, Aisling Graham commented: “With the summer and BBQ season approaching, we’re delighted to secure these listings. The range was developed against a backdrop of strong growth in the BBQ chicken category – as well as a shift in consumer eating habits - with a tendency for shoppers to purchase BBQ chicken all year
round for oven cooking. In terms of flavour combinations, we went with key trends smoked and BBQ are still topping the polls and an element of spiciness never goes amiss!” Aisling continued: “As well as securing additional listings, the Moy Park brand team has been recognised for its commitment to new product development and marketing communications - winning a Henderson Local Supplier Award for Brand Innovation and Highly Commended at the
Ulster Grocer Marketing Awards for Best Product Launch. It is fantastic to win these awards and is testament to our continuing emphasis on industry leading NPD and success in bringing products to market.” Moy Park’s BBQ & Roast range is available now in selected Costcutter and Nisa stores, RRP is £2.99. For more information on products and distribution, please contact Moy Park on 028 38 352 233.
36
208271 U
Stock up now Contact our commercial team on +44(0)28 3835 2233 moyparkchicken.com #sharethegoodness
208271 Ulster Grocer Ad_Full Page_AW.indd 1
15/06/2017 12:10
TOP 25 LOCAL FOOD & DRINKS COMPANIES
HENDERSON GROUP: SETTING GOALS AND SMASHING TARGETS
Paddy Doody, director of Sales and Marketing is pictured with Ron Whitten, chief financial officer at the Henderson Group.
T
he Henderson Group, owner of the SPAR, EUROSPAR and VIVO brands in Northern Ireland, has ranked third in the Ulster Grocer Top 25 Food & Drink Companies, which is not surprising after their latest performance results. The company, which invested over £34m throughout its retail network, infrastructure and employment in 2016 posted a turnover of £699m, an increase of 6% on 2015. Alongside this, fresh food sales climbed by 8% on the previous year, a reflection of the multi-million pound investments made to local farmers, growers and food producers which has helped the Group to satisfy increased consumer demand for convenient, fresh and local foods. Paddy Doody, sales & marketing director at Henderson Wholesale, which supplies over 400 stores and supermarkets across Northern Ireland, says that local is at the heart of everything they do here: “We are not only working with local food producers to supply their products to our retailers, but our fresh team engages with them and creates better offerings for our retailers and their shoppers. “With this in mind, we invested £200,000 to rebrand Meals Made Delicious to The Kitchen last year, and with four local companies, Daily Bake from Armagh, Willowbrook Foods in Killinchy, Big Pot Co. in Cookstown and Quinfresh from 38
Dungannon, we created a new line of convenience meals and ready meals that are perfect for tonight’s tea.” The Kitchen is made up of 39 products with a strong focus on provenance and convenience: “We are keeping in mind the person travelling home from work who is thinking about tonight’s tea, the parents doing the school run who need to pick up something quickly and all those who have had a long day and just want to put something in the oven and have it ready to serve.” The range, which includes bakes, sides, desserts and ready meals, has already experienced sales of over £2m in the past year. The wholesaler’s own brand line enjoy local is still performing well in the fresh food category, and the continued investment into the local agri-food industry ensures continued innovation of the brand, helped by consistently high-quality products from local producers. Paddy adds: “enjoy local is a constant in our stores – it is that one brand across all our fresh ranges, from fruit and vegetables, to deli sides and chicken, meat and fish. The fresh food team partners with the likes of K&G McAtamney butchers to develop meat options, Fred C Robinson for sausages, and LacPatrick for milk, ensuring high quality and great value products for our retailers. “Partnerships like this allow us to continue
to innovate, give back to our local agri-food business and create more for our retailers and shoppers.” Henderson Group set ambitions for 2017, which not only have been realised, but have been extended further. EUROSPAR now has 57 supermarkets in local communities, and has recently re-launched with a Your Community Supermarket tag line; one that encompasses the provenance, charity and school support, and sense of community that every supermarket has within its local area. The Heart of our Community campaign, which aims to install 300 external defibrillator devices outside SPAR, EUROSPAR, VIVO and VIVOXTRA stores across Northern Ireland has reached the 200-milestone mark, already saving lives in local communities. The £12.5m, state-of-the-art warehouse in Mallusk, acquired by the Group in 2015 will open this month, providing even better ordering and logistics for retailers and more employment opportunities locally. The Group now employs a total of 3,099 local workers across its wholesale, retail, property and foodservice companies. Paddy added: “During the remainder of 2017 and in to 2018, Henderson Group will continue to smash its targets and set new goals to keep our performance strong, and provide the best service for our suppliers, retailers and their shoppers.”
Henderson Wholesale Ltd Rated No.
3
in the Top 25 Local Food and Drink Companies
www.henderson-group.com
TOP 25 LOCAL FOOD & DRINKS COMPANIES
MUSGRAVE – INVESTING IN LOCAL IS KEY TO SUCCESS MUSGRAVE MANAGING DIRECTOR, MICHAEL McCORMACK EXPLAINS WHY MUSGRAVE IS THE RIGHT CHOICE FOR LOCAL RETAILERS… Minister Simon Hamilton is pictured at the official opening of Centra Cathedral Quarter with owners Donagh and Orla McGoveran, along with Michael McCormack, MD, Musgrave.
M
usgrave is a 140-year-old family business with a rich heritage in Ireland. As a leading retail, wholesale and export group with a strong portfolio of marketleading brands, our scale, reach, expertise and influence is significant. In Ireland, we’re the largest private sector 42
employer, with a store network of over 1,500 across the island and we feed one in three people. In Northern Ireland, Musgrave recently celebrated its 20th anniversary. Over the last two decades, we have made our mark on communities right across the Province as a committed local employer of over 5,000 people and a dedicated partner of almost 130 retail families. Locally, Musgrave comprises the retail and wholesale divisions of Musgrave Group, supporting independent retailers through the SuperValu, Centra, Mace and Day-Today
brands and wholesale customers through the Marketplace brand. Our commitment to investing in local people, local produce and local communities is at the heart of our business ethos and permeates everything we do. Our support for the independent retailer is truly unrivalled; our people are experts in retail and are committed to working with our retail partners to ensure long-term success and profitability for their stores. It is our intention to run market-leading brands that are responsive to the needs of the Northern Ireland consumer, and which deliver a sustainable profitable business for our retail partners. Following extensive consumer research and having engaged with our retailers, we
TOP 25 LOCAL FOOD & DRINKS COMPANIES
MUSGRAVE IN NUMBERS
Owners Michael and David Downey with Terry Bradley, SuperValu regional manager, pictured outside the new SuperValu Newry store.
are continuing to upgrade a number of stores across our SuperValu, Centra and MACE brands with a revised offer that includes new product ranges, a new environment, refreshed communications and an updated training package. In 2017, Musgrave will invest £10m in refreshing its store network as part of a significant investment in our people, brands and business. The performance of these refreshed stores has been well above expectations, with fantastic customer feedback and consumers responding by shopping more often and buying more each time they shop. Our revamped stores have experienced strong sales growth, with many reporting double digit growth. We are focused on building long-term relationships right across our business and this also applies to our suppliers – including the 140 local suppliers and over 3,000 local farmers, from whom we will buy more than £100m worth of local food and drink in 2017.
• Musgrave will buy more than £100M worth of local food and drink in 2017, partnering with more than 140 local suppers. • We sell more than 3,000 local products, working with over 3,000 local farmers • We provide employment for over 5,000 people and are a dedicated partner of almost 130 retail families in Northern Ireland • We will invest £10M into our Northern Ireland store Network this year, as part of our store upgrade programme • We have made a £2M investment in our Centra Live Every Day and SuperValu Let’s Cook campaigns, helping our customers to make healthier choices • We have raised a massive £2.5M for charity partner Action Cancer since 2005, believed to be the biggest single donation by a Northern Ireland company • Mace retailers and the MarketPlace brand have raised more than £60,000 for NI Chest Heart and Stroke, since beginning the charity partnership in 2016.
We are proud to work with a large variety of local suppliers and we aim to increase this every year with double-digit growth. We’re proud to be working alongside our local retailers and suppliers in their communities to roll out a number of exciting initiatives across our SuperValu and Centra brands. This year, Musgrave is investing £2m into health initiatives through the Centra Live Every Day campaign and SuperValu’s Let’s Cook mission, empowering and educating our customers to make better choices. As leaders in local, quality food, we are committed to helping our customers to lead healthier lifestyles, providing them with the support and tools they need to make small, positive changes.
Each of these initiatives demonstrate Musgrave’s commitment and investment in Northern Ireland through its SuperValu and Centra stores. Musgrave has also committed £250,000 into staff development in 2017 and, through its independent SuperValu and Centra retailers, has invested significantly in Corporate Social Responsibility initiatives across Northern Ireland, raising a massive £2.5m for charity partner Action Cancer since 2005. Mace retailers and the MarketPlace brand have raised more than £60,000 for NI Chest Heart and Stroke, since beginning the charity partnership in 2016. Working in partnership with and investing in local people, produce and retailers is key to driving our ambition to become Northern Ireland’s number one consumer choice in convenience shopping. 43
TOP 25 LOCAL FOOD & DRINKS COMPANIES
CRANSWICK TO DUNBIA FORGES AHEAD WITH STRATEGIC PARTNERSHIP INVEST £4M IN CULLYBACKEY PLANT Jim Dobson OBE
Niall Browne
U
K pork processor Cranswick is investing £4m in the Northern Ireland plant it acquired from Dunbia last year, with the aim of boosting productivity. The company plans to spend an additional £2m to a similar investment made shortly after the acquisition, with Chief Executive Adam Crouch saying the new investment would be used to hit Cranswick’s long-term target of boosting pig processing numbers from 8,000 to 14,000 a week.
“We have a good strong workforce; we have increased automation.” “We acquired it in November last year, and we have already spent over £2m in flows, production, butchery and the packing hall,” said Crouch. “In the next 18 months, it will be another £2m. “We have a good strong workforce; we have increased automation. We are looking to see how far we can grow the pig numbers.” Since Cranswick acquired the Co Antrim site in November, it has increased pig processing numbers to 10,000 a week. The Northern Ireland purpose-built facility employed 360 people at the time. The Dunbia acquisition was Cranswick’s fifth takeover in five years. Cranswick was established in the 1970s, and entered the stock market in 1985. In 1991, it began processing pork and cooked meats. By last year, the business included chicken rearing, premium cooked poultry processing, pig breeding and rearing, pasties production and bacon processing.
44
A
busy past few years has demonstrated the business acumen that propelled Dunbia to number two in the Top 25. Fresh from the sale of its Cullybackey pig processing site to Cranswick Country Foods in late 2016, Dunbia announced last month it had agreed a strategic partnership with Dawn Meats to establish a majority-owned joint venture (JV) comprising the UK operations of both organisations. Dawn will separately acquire Dunbia’s operations in the Republic of Ireland, with the overall partnership subject to approval by the relevant competition authorities. In Ireland, Dawn Meats will have nine facilities including five abattoirs, acquiring Dunbia’s abattoir in Slane and boning hall in Kilbeggan. The combined UK businesses will trade as Dunbia, with the aim of delivering enhanced scale and market presence to better serve existing farmer suppliers and customers of both organisations across the retail, manufacturing, wholesale and foodservice sectors. The partnership will offer customers regionally-sourced solutions for beef and lamb from 15 facilities across Scotland, England,
Wales and Northern Ireland. Dunbia CEO Jim Dobson, OBE will be CEO of the new Dunbia JV, and Dawn Meats’ CEO Niall Browne, will be executive chairman. The JV will be run from Dunbia’s existing headquarters in Dungannon. “This is the right strategic partnership for Dunbia’s staff and customers, and sees us joining with a company with a shared heritage of excellence in the production of premium beef and lamb products,” said Jim Dobson, CEO of Dunbia. “The new UK joint venture confirms our future as a leading supplier in the UK market. In a consolidating industry, this deal makes strategic sense for both companies, our customers and our farmer suppliers.” Across Dawn Meats and Dunbia, the businesses process approximately 900,000 cattle and 2.6 million sheep annually. Dawn Meats is a processor and supplier of premium Irish and British red meat to supermarkets and foodservice in Ireland and the UK, and exports to 48 countries around the world. Dunbia is a leading processor of beef and lamb, with nine sites across the UK and Ireland, employing around 4,000 people.
TOP 25 LOCAL FOOD & DRINKS COMPANIES
KEY ROLE FOR NORTHERN IRELAND IN GROWTH OF LAKELAND DAIRIES
L
akeland Dairies ( number 16 in the Top 25), a major dairy processor which has operations in Northern Ireland including its global logistics centre in Newtownards, has reported increased profits for the year ended December 31, 2016*. In spite of difficult dairy market conditions, Lakeland turned in a very robust performance with revenues up by 2% to £514.6m, yielding an operating profit of £6.2m before exceptional costs. Lakeland Dairies operates across 15 counties on a cross-border basis, processing milk into a wide range of value-added dairy foodservice products and food ingredients. The co-operative has a portfolio of 240 different dairy products which it exports to 80 countries worldwide; much of it through its logistics centre in Northern Ireland. As a farmer owned co-operative, Lakeland strongly supported the milk price that it pays to dairy farmers throughout the year, while ensuring an appropriate level of re-investment to drive the future long-term growth and development of the business. All developments have been achieved without any requirement for levies or sharing up by milk producers. Lakeland Dairies acquired Northern Ireland’s Fane Valley Dairies in May 2016, increasing milk intake by 22% to 1.1 billion litres. The continuing benefit of this additional milk flow, together with generally increasing milk supplies, will take full effect in the current year as intake rises to 1.2 billion litres of milk - contributing to economies of scale. The Food Ingredients Division performed strongly in a challenging year with revenues increasing by 9% to £302.7m. The acquisition of Fane Valley Dairies contributed substantial extra milk volumes for processing, helping to meet consistent demand for a wide range of dairy food ingredients. With Bailieboro Dryer No. 3 (Milk Powder Plant) in the Republic of Ireland completed and commissioned, it is now able to produce over 160,000 tonnes of milk powders a year and over 50,000 tonnes of butter on a single site. Foodservice revenues of £166.1m include a reduction of 3.8% from the previous year, which is primarily due to pricing sensitivity in an intensely competitive market climate. The overall volume of sales remained positive where Lakeland has a diversified and innovative product mix, adding further value to every litre of milk processed. The co-operative’s major new Global Logistics Centre in Newtownards played an important role, meeting customer demand in key market segments including hospitality, catering and convenience, using highly automated systems with maximum effectiveness and efficiency. “In a challenging and sometimes unpredictable dairy market environment, Lakeland Dairies continued to make very positive progress in 2016,” said Michael Hanley, Group chief executive. “Our developments have further advanced our competitiveness and processing scale. We are especially pleased that, in spite of difficult market conditions, we sold all of our output to really well established customers where we have consistently increasing levels of demand.” *Lakeland Dairies’ accounts to December 31, 2016 have not been filed with Companies House yet; hence inclusion of accounts to 02/01/2016 in the Top 25.
www.skeaeggs.com
45
TOP 25 LOCAL FOOD & DRINKS COMPANIES further upgrade and redesign of their website is planned for later this year, which will see added efficiencies for the benefit of their retailers.
CATEGORY DEVELOPMENT DELIVERS
GROWTH FOR S&W
W
ith origins dating as far back as 1916, Savage & Whitten’s business has continually evolved over the last number of years to become one of the largest independent wholesalers in Ireland. It is now seen as a major employer in the Newry area, with employment levels increasing over recent years to 167 employees along with jobs created for a further 30 people in company-owned stores. From its Newry headquarters, this has proved a perfect base for trading in both Northern and Southern Ireland. Key developments during the year have included the further development of categories that are important to the consumer including chill, fresh and frozen ranges alongside further improvements in the food-to-go category. S&W is a member of the Today’s Group, which is celebrating 30 years in business and is the largest independent buying group in the UK. 2016 proved a very successful year, delivering significant growth of 15% in what was a relatively flat market, where barriers to business are becoming ever more pertinent. “For the first time ever as a business, we have ventured into the contract market and 46
delivered three successes which is helping us achieve further growth in 2017,” says Mark Windebank (pictured above), managing director of Savage & Whitten. “Throughout the year, we have developed and strengthened our sales structures, venturing into new territories, whilst working ever closer with our IT partners to improve the quality of offering to both our Today’s symbol stores and our independent customers.” Investment in personnel, infrastructure and IT has continued at a most critical time as the sector is experiencing a huge shift in consumer trends toward fresh meal solutions and food to go; in particular, in-store deli counters. Investment in technology has been core to the success of the business, especially the e-commerce website which now equates to almost 75% of all orders received plus this also allows customers more time to focus on the front end of their business instead of being tied up unnecessarily. The online facility allows customers to view 6,500-plus pictorial lines, giving them access to online statements, invoices and order history at a time convenient to them. A
A large part of the phenomenal growth has been attributable to the huge success of the Today’s symbol during the last seven years. Since launching the first Today’s symbol store at the end of 2009, there are currently 104 stores in Northern Ireland operating under the Today’s Local, Extra and Express Fascia plus a further 27 stores in the Republic of Ireland. Michael Skelton, sales director of Savage & Whittem, told Ulster Grocer that 2016 saw a significant expansion of the brand in the south and this will continue in 2017. The success of the Today’s symbol has not only been attributable to the no fees, noncontractual approach but more importantly to the support services given to retailers such as a full-store development package including imagery, EPOS, category management, marketing, and sales support for each store. Increased investment in the marketing plan has been executed this year for the Today’s symbol stores which saw a re-vamp of their symbol leaflets and advertising in local radio with increased competitions. This has created store brand awareness in the community and has been well accepted by local consumers. Savage & Whitten has a strong focus on corporate social responsibility and supports a number of local charities throughout the year. Windebank said: “I am delighted that S&W Wholesale has been recognised again as one of the Top 25 Food & Drinks Companies in NI. We work constantly to expand on our successes year on year and strive to be more innovative in order to drive sales, reduce costs and improve margins for our customers. We continue to respond to the needs of the consumer by sourcing great deals from supporting local suppliers throughout Ireland, alongside the national strength of the Today’s Group with a turnover of £5.7bn.
PARTNERSHIPS FOR SUCCESS AS A TODAY’S GROUP SYMBOL RETAILER, I GET: Branded Store
Membership · Today’s Group – (No membership fee) · No weekly Marketing Fee · Signage & Branding Support
Concept Drawings
Dedicated Delivery
Deliveries · Ambient and Chill/Freeze/ Fresh Central Distribution · Central Billing with all Major Suppliers
Chilled
Merchandising
Sales Support · Dedicated BDM store visit with a Retail Sales Focus · Specialist Food to Go Support · Merchandising Support · Store Design and Facilitation Support
Food to Go
EPOS
IT – Rescan EPOS System · Retail Scan System (no capital cost) · On line Ordering
Marketing
Today’s a Good Day to Rethink Your Profits.
S&W Wholesale, Carnbane Business Park, Newry BT35 6QH
T: F: E:
028302 63521 028302 63143 info@sandwni.com
www.savageandwhitten.com