N O. 1 M AG A Z I N E F O R T H E LO C A L G R O C E R Y S E C TO R
GROCER ULSTER
TM
Over 45 years at the heart of the Northern Ireland food industry
FOREWORD
email: info@ulstergrocer.com THE TEAM & CONTACTS Editor: Alyson Magee
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TOP 75 LOCAL FOOD & DRINKS COMPANIES
W
elcome to our inaugural Top 75 Local Food & Drinks Companies, a standalone magazine going out to subscribers with our double summer edition of Ulster Grocer. Ulster Grocer has been running a Top 25 Local Food & Drinks Companies feature within its summer edition for a good few years now, increased to a Top 30 in 2018, and this year we decided to go all out and significantly expand its scope with a Top 75. Rolling out the listing, which is ranked by turnover, allows us to offer a much wider picture of the Northern Ireland’s grocery and agri-food sector, from smaller pie manufacturers to huge meat wholesalers and from successful independent retailers to our biggest symbol group operators. To give an idea of the vast range in turnover across the Top 75, sitting at number one is Moy Park with over £1.5bn while Around Noon just makes it onto the list, at number 75 with £16.6m. Expect the
food-to-go specialist to keep climbing that list, however, after making the Sunday Times Virgin Atlantic Fast Track 100 league table recently for the second year in a row. Leading local economist John Simpson breaks down the list inside, offering analysis of the macro and micro pictures offered by the Top 75, identifying key categories by turnover and by profit margin. Our thanks to Dun & Bradstreet for compiling the list, John Simpson for his astute analysis, local retail and food industry bodies for their insightful commentaries and PRL In-Market Solutions for sponsoring our first standalone edition. Congratulations to all those making the Top 75, and thanks are also due to the companies supporting this edition. We hope you find it an interesting read.
CONTENTS 6-7 8-9 10 11 12 13 14 16 18-19 20 22 23 24 25 26 28 30 31 32 33 34
Top 75 Local Food & Drinks Companies listing Top 75 analysis by John Simpson Commentary - Invest Northern Ireland Commentary - Food Northern Ireland Commentary – Northern Ireland Food & Drink Association Commentary – Livestock & Meat Commission Profile – Moy Park Profile – Henderson Group Profile – Top 75 sponsor PRL In-Market Solutions Profile – SHS Group Profile – Dunbia Profile – Dale Farm Profiles – Foyle Food Group, Musgrave & Coca-Cola HBC Profiles – Tayto Group, Diageo & Skea Eggs Profile – Savage & Whitten Profiles – Mount Charles, PRM Group & Andrews Group Profile – O’Reilly’s Wholesale Profiles – Scott’s Bakery, Mash Direct & Around Noon Profile – John Mackle Commentary – Northern Ireland Retail Consortium Commercial property analysis – Lisney TOP 75 LOCAL FOOD AND DRINKS COMPANIES • 5
TOP 75 LOCAL FOOD & DRINKS COMPANIES N0.
COMPANY NAME
STATEMENT END DATE
TURNOVER (m)
TURNOVER (PREVIOUS YEAR)
NET WORTH (m)
PRE-TAX PROFIT (m)
EMPLOYEE NUMBERS
1
MOY PARK LTD
31/12/2017
1506.5
1400.7
304.8
64.5
8473
2
JOHN HENDERSON (HOLDINGS) LTD
31/12/2017
759.1
699.3
173.5
20.0
3387
3
DUNBIA LTD
31/12/2017
676.6
768.2
139.5
7.2
4869
4
SHS GROUP LTD
29/12/2017
545.7
467.7
151.2
24.4
878
5
DALE FARM
31/03/2018
482.4
388.9
51.3
8.4
657
6
FOYLE FOOD GROUP LTD
31/12/2017
352.0
306.1
21.2
4.0
300
7
MUSGRAVE RETAIL PARTNERS NI LTD
30/12/2017
271.1
261.0
14.5
0.9
625
8
GREENFIELDS IRELAND LTD
31/12/2017
242.3
146.9
3.2
0.4
33
9
LACPATRICK DAIRIES (NI) LTD
31/12/2017
223.8
175.8
8.7
2.2
229
10
LINDEN FOODS LTD
30/09/2017
199.3
182.7
17.2
0.0
1148
11
LAKELAND DAIRIES (N.I.) LTD
30/12/2017
198.8
145.1
(-4.8)
0.2
56
12
COCA-COLA HBC NORTHERN IRELAND LTD
31/12/2017
189.2
176.6
65.1
8.1
434
13
LAMEX FOODS EUROPE (N.I.) LTD
31/03/2018
188.7
153.4
11.1
3.4
7
14
TAYTO GROUP LTD
31/07/2017
174.0
163.3
80.1
1.9
1376
15
LYNAS FOODSERVICE
31/10/2017
131.6
115.9
24.2
2.7
490
16
DUNNES STORES (BANGOR) LTD
29/12/2017
113.4
99.9
48.1
(-23.0)
1724
17
JAMES E. MCCABE LTD
31/12/2017
94.8
92.7
48.5
2.9
533
18
MUSGRAVE DISTRIBUTION LTD
30/12/2017
93.3
94.8
0.3
(-0.4)
191
19
CRANSWICK COUNTRY FOODS (BALLYMENA)
31/03/2018
92.7
63.9
8.1
3.5
260
20
SAVAGE & WHITTEN WHOLESALE LTD
31/12/2017
85.1
72.7
4.2
1.7
199
21
PHILIP RUSSELL LTD
31/12/2017
77.6
77.4
17.0
2.1
300
22
D & W CARLISLE LTD
31/07/2017
72.9
64.2
3.8
0.1
198
23
DIAGEO GLOBAL SUPPLY IBC LTD
30/06/2017
72.9
74.5
19.7
3.5
150
24
SKEA EGG FARMS LTD
31/12/2017
66.7
63.3
19.2
3.2
83
25
DRINKS INC. LTD
31/03/2018
66.3
62.7
12.5
2.1
102
26
STRATHROY DAIRY LTD
31/07/2017
66.2
46.9
6.5
0.5
140
27
READY EGG PRODUCTS LTD
31/12/2017
64.4
42.5
27.8
7.1
140
28
LYNN’S COUNTRY FOODS LTD
02/09/2017
61.1
45.9
17.4
4.0
324
29
BRAKES FOODSERVICE NI LTD
01/07/2017
57.2
37.3
0.3
(-0.4)
200
30
NORTHWAY MUSHROOMS LTD
31/12/2017
57.0
56.2
2.6
0.1
5
31
AVONDALE FOODS (CRAIGAVON) LTD
31/03/2018
51.5
50.7
23.3
2.7
443
32
TENNENT’S NI LTD
28/02/2018
47.2
52.4
7.4
6.2
113
33
EVRON FOODS LTD
31/08/2017
44.3
47.7
6.3
0.5
210
34
C & J MEATS LTD
30/11/2017
43.8
36.1
1.1
0.3
50
35
BAWNBUA FOODS NI LTD
31/01/2018
43.4
36.7
4.5
0.5
181
36
RICHMOND MARKETING (NI) LTD
31/12/2017
42.1
24.6
3.1
1.1
25
37
UNITED WINE MERCHANTS LTD
31/12/2017
41.2
39.1
8.0
(-1.4)
48
38
FRYLITE LTD
01/04/2018
40.1
36.1
11.8
1.5
50
6 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
TOP 75 LOCAL FOOD & DRINKS COMPANIES COMPANY NAME
STATEMENT END DATE
TURNOVER (m)
TURNOVER (PREVIOUS YEAR)
NET WORTH (m)
PRE-TAX PROFIT (m)
EMPLOYEE NUMBERS
39
DOHERTY & GRAY LTD
31/03/2018
37.7
38.7
3.2
(-0.2)
100
40
JMW FARMS LTD
30/09/2017
37.4
30.0
22.4
3.8
30
41
WINEFLAIR (BELFAST) LTD
30/09/2017
36.6
38.5
15.7
1.4
277
42
DILLON BASS LTD
30/06/2017
36.5
33.1
(-0.07)
0.0
26
43
THE MOUNT CHARLES GROUP LTD
28/09/2017
34.0
29.5
6.9
0.5
1482
44
THE OLD BUSHMILLS DISTILLERY COMPANY LTD
31/12/2017
31.6
27.8
160.6
6.9
120
45
JOHN WOODS (LISGLYN) LTD
31/07/2017
31.1
30.0
11.5
0.7
300
46
O’REILLY’S WHOLESALE LTD
30/09/2017
30.6
18.0
1.5
(-0.04)
72
47
PRM GROUP LTD
31/12/2017
30.0
27.5
5.7
0.4
9
48
W.D. IRWIN & SONS LTD
02/04/2017
29.4
29.9
0.8
(-0.2)
30
49
WILLOWBROOK FOODS LTD
31/01/2018
29.2
24.3
5.0
0.8
91
50
JOHN MACKLE (MOY) LTD
31/12/2017
28.0
26.2
6.3
0.9
50
51
KILKEEL SEAFOODS LTD
31/12/2017
27.8
21.0
5.3
0.3
223
52
DSP SUPERMARKETS LTD
31/03/2018
26.1
23.1
1.2
0.3
314
53
ANDREWS GROUP LTD
30/09/2017
26.0
20.6
4.7
1.4
74
54
TOTAL PRODUCE BELFAST LTD
31/12/2017
25.6
21.3
11.0
0.3
45
55
ELMGROVE FOODS LTD
30/09/2017
25.4
36.3
2.5
0.8
11
56
JOHNSON BROTHERS (BELFAST) LTD
31/12/2017
24.9
23.5
10.2
0.8
101
57
FIVEWAYS SHOP & SERVICE STATION LTD
30/04/2018
24.4
23.2
15.0
1.8
204
58
NORTH DOWN (BELFAST) LTD
31/12/2017
24.3
25.6
2.6
0.4
75
59
TOWNVIEW FOODS LTD
31/12/2017
23.9
18.5
4.5
0.6
5
60
NEWELL GROUP LTD
31/01/2018
23.5
15.1
11.6
0.9
343
61
R. THOMPSON & SON (ARMAGH) LTD
31/12/2017
23.3
22.0
5.3
0.6
52
62
BALLYGARVEY EGGS LTD
30/09/2017
23.3
21.5
17.3
3.0
52
63
SCOTTS BAKERY LTD
31/03/2018
22.5
18.1
5.8
1.9
219
64
NORBEV LTD
31/12/2017
20.9
13.7
5.3
1.6
90
65
WINEMARK THE WINEMERCHANTS LTD
31/12/2017
20.4
19.8
18.4
0.7
264
66
M. KEYS FARMS LTD
30/09/2017
20.2
15.2
3.6
2.6
33
67
CREIGHTON GROUP LTD
31/01/2018
20.1
18.0
1.8
(-0.1)
2
68
LONG’S SUPERMARKETS LTD
31/01/2018
19.8
18.7
7.7
0.3
257
69
DELI-LITES (IRELAND) LTD
31/03/2018
19.7
17.1
1.1
0.5
191
70
MCCOLGANS QUALITY FOODS LTD
31/03/2018
19.7
18.6
9.2
1.1
272
71
WESTERN BRAND POULTRY PRODUCTS (NI) LTD
31/12/2017
17.7
15.8
2.5
0.5
170
72
KETTYLE FOODS LTD
30/09/2017
17.3
15.5
(-1.3)
(-0.9)
50
73
MCERLAIN’S BAKERY (MAGHERAFELT) LTD
29/10/2017
17.2
16.2
1.1
(-0.6)
241
74
MASH DIRECT LTD
28/02/2018
16.9
16.0
2.8
0.6
186
75
AROUND NOON LTD
31/12/2017
16.6
14.4
0.9
0.4
235
TOP 75 LOCAL FOOD AND DRINKS COMPANIES • 7
ANALYSIS
COMPETITIVE AND SUCCESSFUL: A STRONG LOCAL FOOD INDUSTRY WHILE FOOD & DRINKS COMPANIES REPRESENT A VITAL SECTOR OF THE NORTHERN ECONOMY, PROFIT MARGINS ARE TIGHT, REPORTS JOHN SIMPSON
N
orthern Ireland starts with natural advantages which have allowed the local food industry to expand in recent years. Nature has endowed Northern Ireland with a temperate climate, usually with modest rainfall and a green and often sustaining farming environment. Hardly surprising, therefore, that any examination of the food and drink sectors offers evidence of diversity, competitive strength and a willingness to invest. Success in growing the food and drink sectors also depends on the skills and expertise of
the people who do the work on the ground or who assess the investment projects, build the infrastructure and successfully enter local and international market places. For this special review of the state of the food and drink industry in Northern Ireland, information has been accessed from 75 of the larger locally-registered businesses ranging from the multi-national poultry processor Moy Park with a turnover of over ÂŁ1.5bn, to smaller and newer home-based businesses such as sandwich supplier Around Noon and vegetable
processor Mash Direct, each with an annual turnover of just under ÂŁ17m. There are, of course, more than 75 food and drink businesses in Northern Ireland. However, our search has brought together trading information on businesses which report as companies with a local registration. Although GB and other externally-owned businesses which do business in Northern Ireland cannot be included, this search brings together information which may include over 80% of the food and drink turnover here.
ANALYSIS POST-BREXIT TRADE IN MILK, BEEF, SHEEP MEAT AND PORK IS AT RISK OF DISRUPTION FROM THE RETURN OF CROSSBORDER RULES WHICH COULD MEAN THAT THE TRADING SUPPLY CHAINS THAT HAVE BUILT UP IN THE LAST 40 YEARS, WITHIN THE EU, ARE CHALLENGED.”
The 75 businesses in this review recorded a total annual turnover in the most recent year of nearly £8.5bn. On that turnover, pre-tax profits of over £201m were registered and the firms employed just short of 35,000 people. Results for a small number of the businesses were affected by exceptional financial adjustments, including the negative effects of the impairment of capital values. These adjustments accounted for about £25m, including a major financial charge affecting the group of Dunnes Stores (Bangor). Excluding exceptional items, pre-tax profits were nearer to £226m. These headline totals are impressive. This is an important part of the Northern Ireland economy. These businesses generate about 5% of the GDP of the region and represent nearer to 10% of the private sector. As would be expected, the profit margins across the food industry are tight. Pre-tax profits of £226m on a turnover of £8.5bn represent a margin of just 2.7%. There are, however, variations between specific parts of the sector (see below). The 75 businesses were grouped putting together businesses in broadly similar types of activity. Admittedly, this grouping is slightly imprecise and creates only imperfect comparators. The results table has been adjusted to exclude from the pre-tax profit figures, the exceptional large impairment registered by the Dunnes Stores (Bangor) group. The different groups show that profit margins have indeed been varied. At the aggregated level of this data, some tentative conclusions emerge. Perhaps, to no big surprise, the tightest margins were posted by the businesses in the processing of milk and dairy products. The other group showing tight margins emerged in those businesses engaged in general retailing. Foodservice providers, similarly, showed a profit margin of only 1.3%.
Embedded in the results, but not separately grouped, there are two local bread producers which have been trading in difficult conditions. Both recorded a pre-tax loss in the most recent year. At the higher end of the spectrum, some of the best profit margins were found in the groups containing the wholesale suppliers of alcoholic drinks, with a margin of 5.1%, closely matched by the businesses in the retailing of drinks, with a margin of 3.1%. Businesses classified as mainly processing meat and eggs generated a better than average profit margin at 3.3%. As these 75 businesses continue to trade in 2019, as is occurring elsewhere in the economy, there is a degree of nervousness about the way in which costs and trading conditions may vary as a result of factors external to these individual businesses. The dominant concern of recent months, which still continues, is the outcome of the Brexit decisions. In mid-2019, this converts into the problems posed by a lack of certainty on the outcome of Brexit and the uncertainty about the timetable for firm decisions to be made by the UK, Ireland and EU authorities. Almost every food business will be affected by the Brexit process. The biggest risk is that
trading conditions across this island will be affected and that creates a near universal concern. Post-Brexit trade in milk, beef, sheep meat and pork is at risk of disruption from the return of cross-border rules which could mean that the trading supply chains that have built up in the last 40 years, within the EU, are challenged. The food and drink businesses have established a seamless trading environment in Ireland, north and south, with agreed EU licensing and regulatory standards. Also the food and drink sectors have adjusted, when necessary, to variations in the currency exchange rates for the euro and sterling. There is a particular interest in the application of the UK-EU possible withdrawal agreement backed by the ‘backstop’ to help avoid crossborder disruption. There will be even more worrying interest in UK-EU relations if Brexit happens without a formal agreement between the two main authorities. A no-deal Brexit, linked to possible cross-border customs tariffs, or quotas, or licences poses large questions largely with uncertain assumptions about the administrative arrangements and the extra costs. 2019 is a year when the food and drink sectors have, in general, inherited a stable trading base. The risk is that many of the current certainties may mutate into a mixture of unstable, uncertain and unwelcome changed conditions. For the businesses, which have underpinned this review, readiness for the unexpected in needed. Uncertainty is critically unavoidable. The questions facing the food and drink sectors do not stand alone. The whole food supply chain, from farmer, to farm supplier, and to agricultural support systems, faces degrees of commercial uncertainty greater than for many recent years. 2019 is likely to be a year of learning how to adjust to change.
LOCAL FOOD & DRINKS COMPANIES’ PROFIT MARGINS BY CATEGORY No. of firms Turnover Pre-tax Profit margin profit £m £m % Milk processors 4 971 11.3 1.2 Retail 8 331 4.0 1.2 Foodservice 4 247 3.3 1.3 Wholesale & retail 4 1,208 22.2 1.8 Processors 18 834 22.6 2.7 Wholesale 8 1,112 30.4 2.7 Drinks retail 3 135 4.2 3.1 Meat & egg 17 3,183 103.6 3.3 processors
Drinks wholesale
9
453
23.0
5.1
COMMENTARY
SUPPORTING THE AGRI-FOOD SECTOR THROUGH CHANGE AND CHALLENGE JOHN HOOD, DIRECTOR OF THE FOOD, DRINK AND TOURISM DIVISION AT INVEST NORTHERN IRELAND, OUTLINES HOW THE AGENCY IS HELPING THE AGRI-FOOD SECTOR TO FACE CHALLENGES AND REMAIN COMPETITIVE
T
he Northern Ireland agri-food sector is a £5b industry that directly employs almost 24,000 people and exports to over 70 countries around the world. As such, it is a key pillar of the local economy and an important focus for Invest NI. Northern Ireland’s food and drink is renowned for its pure natural quality, the result of the marriage of the region’s lush natural resources with the passion and skill of our farmers and producers. This is the key message that Invest NI’s dedicated Food Business Development Team promotes in Great Britain, the Republic of Ireland and international markets. Invest NI is working with hundreds of agri-food companies across Northern Ireland, including 10 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
many that feature in Ulster Grocer’s Top 75, to help them drive sales, build exports, increase efficiencies and innovate. Earlier this year we supported a multi-million pound investment by Finnebrogue Artisan in a new production facility in Downpatrick, where it is manufacturing its innovative nitrite-free bacon. The bacon, branded Naked, has been hailed as a breakthrough in meat processing and this investment will lead to the creation of 125 jobs by 2022. Finnebrogue is just one of many agri-food companies that have innovation at the heart of their offering and are benefitting from a progressive approach to food production and from Invest NI support.
Davison Canners has launched its own brand of desserts, and secured new exports following our support towards product development and a £1.4m capital investment. And our popular Innovation Voucher enabled Walled City Brewery in Londonderry to develop a new craft beer. But our support goes well beyond financial aid, with a range of interventions that help companies to develop new products, exploit export opportunities and become leaner and more profitable. We have an expanding global network designed to support Northern Ireland businesses that are keen to explore new prospects. That, coupled with the provision of in-market expertise and resources, is helping to drive the local food and drink industry towards further growth in international premium markets. Limavady company, Broighter Gold Rapeseed Oil, for example, benefited from attending a recent Invest NI-organised inward buyer mission, where it got the chance to pitch to international buyers. Broighter sealed a deal with Dubai retailer Al Maya Group, which has over 70 outlets and also acts as a distributor to other retailers in the United Arab Emirates and Oman. And a number of companies, including Glanbia Cheese, have used Invest NI’s Lean Productivity Improvement team to help them get more out of their resources, become more efficient and ultimately increase profitability. Invest NI is also helping the sector face into an increasingly challenging marketplace. The changing landscape in grocery requires companies to have an in-depth understanding of the consumer. In response, we have formed a new Consumer Insight team to assist companies in analysing and identifying changing consumer behaviours, values and needs to help them develop and deliver products that meet market expectations. It is also a challenging time for the sector because of the ongoing uncertainty over Brexit, which may impact on opportunities, legislation and accessibility within the UK, Republic of Ireland and international markets. We have extensive advice for businesses on our website, including a range of best practice guides, and have also been running a series of Brexit workshops to help companies prepare as best they can for the period ahead. The food and drink industry in Northern Ireland has a reputation for being willing and able to adapt to new challenges and this is now more relevant than ever. Invest NI remains focused on providing the most efficient and effective support to agri-food companies, and providing relevant information to help them navigate through whatever changes and challenges lie ahead.
COMMENTARY
IMPRESSIVE SHOWCASE OF A DYNAMIC AND INNOVATION-LED INDUSTRY LOCAL COMPANIES ARE COMPETING AND WINNING IN INTERNATIONAL MARKETS, SAYS MICHELE SHIRLOW, CHIEF EXECUTIVE OF FOOD NI
T
he Ulster Grocer Top 75 Local Food & Drinks Companies is an enormously impressive showcase of the strength and scope of an industry which continues to make an outstanding contribution to the economy. The agri-food industry here – worth around £5bn annually to the economy and employing upwards of 100,000 people throughout an extensive supply chain – is now our most important and a key driver of innovation, especially in terms of products and customerfocused services. It’s immensely encouraging to see so many Food NI member companies in this important table of outstanding success in what is an exacting and fast-moving global industry. This reflects why Northern Ireland rightly won the title of World’s Best Food Destination at the International Travel and Tourism Awards. What has happened in the industry over the past 10 years is nothing short of a food revolution. Many of the companies are increasingly seeking to develop sales outside Northern Ireland and especially in Britain, still our biggest single market, and the Republic of Ireland, our most important for exports. Our companies are competing– and winning - in international markets. Promoting innovation and sales both inside and outside Northern Ireland, of course, has long been a Food NI focus and underpinned our widely acclaimed Taste the Greatness strategic action plan. Over the past year, Food NI, supported by Invest NI Food Division, has sought to support and encourage this important focus for the benefit of the companies themselves and the wider Northern Ireland economy. We’ve developed a pool of knowledge and experience in the delivery of expert promotional and marketing services for all companies here and outside Northern Ireland. Food NI’s promotional activities for our most progressive and successful industry have included ‘Taste the Greatness’ pavilions at major trade and consumer shows in Dublin, Glasgow, Edinburgh, Harrogate, Birmingham and London. And many of the companies participating in these promotional events have secured worthwhile business. Even many smaller enterprises have returned with business from first-time participation in one of our events in Britain. We’ve also expanded our services to successfully cover Meet the Buyer’events. Our expertise is based on experience gained in promotional activities from our organisation at showcases like the tremendously-popular Food NI Food Pavilion at the RUAS event in Balmoral Park over the past decade. We’ve developed this into one of the most successful and popular attractions for both consumers and buyers alike. It now involves
upwards of 100 food and drink companies and the participation of several local councils, including those we’ve worked with in the formation of Food Networks to promote the growth of smaller firms in particular. What the pavilion does very successfully is to increase awareness with local consumers of the quality and outstanding taste of food and drink from Northern Ireland suppliers and it is also a magnet for buyers, brought to the pavilion by Invest NI from all over Britain and the Republic. Our successful delivery of the Year of Food
& Drink in 2016 also led to Food NI winning recognition for Northern Ireland as the World’s Best Food Destination 2018/19 at the influential World Travel Trade Awards in London last November. This success has become a key message for us in Britain as we step up professional promotion of our fabulous food and drink industry. And we look forward to building on this through engagement with Failte Ireland and Tourism NI on the exciting Taste the Island programme of promotional activities in planning from mid-September to mid-November. TOP 75 LOCAL FOOD AND DRINKS COMPANIES • 11
COMMENTARY
IMPORTANCE OF AGRI-FOOD SECTOR CANNOT BE OVERSTATED BEHIND THE TOP 75 ARE MANY STORIES OF ENTREPRENEURSHIP, INNOVATION AND SHEER HARD WORK, SAYS MICHAEL BELL, EXECUTIVE DIRECTOR OF THE NORTHERN IRELAND FOOD AND DRINK ASSOCIATION (NIFDA)
N
orthern Ireland’s vibrant food and drink companies continue to be an integral part of our manufacturing industry, achieving successful growth despite ongoing challenges in a competitive, global marketplace. Many of the companies on the Top 75 list began as small family-run businesses, steadily growing to become major employers and contributors to the local economy. Behind the company names are individual stories of entrepreneurship, innovation and sheer hard work. NIFDA continues to support the industry through a number of targeted events, training schemes and market development programmes. 12 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
Earlier this year, we celebrated the achievements of many of the companies featured on this list at the Northern Ireland Food and Drink Awards, which are recognised as a crucial measure of commercial success. When it comes to innovation, quality and commercial success, our food and drink industry is truly world leading. Our award-winning food and drink companies have evolved by putting the consumer at the heart of everything they do – ensuring that they are addressing what customers actually want, rather than what we want to supply them. The food industry is subject to ever-changing trends and demands, and the leading companies ensure they stay one step ahead of the curve.
Amongst the latest trends are a demand for natural, convenience, healthy, low/no sugar, functional protein, vegetarian/vegan products, and products which boast gut health benefits such as kefir. The consumer is also increasingly demanding that food manufacturers, processors and retailers take responsibility for minimising plastic waste. These trends and more will continue to shape the industry, and companies who come up with innovative solutions to deliver on these will stand the test of time. Innovation is increasingly important for the sector and this does not just relate to new product development. Automation is developing, and it will have a role to play in transforming the future of the sector. Innovation will also help respond to particular policy issues such as health, wellness and wastage. Unfortunately, however, we still struggle to get the level of support that we need and deserve. Currently in the UK you can get up to 40% capital financial assistance if you are a food processor based in Scotland, Wales or England, but not in Northern Ireland. We need the support of a functioning local Assembly to address this as an immediate priority. The importance of agri-food to Northern Ireland cannot be overstated. These companies form a vital part of the agri-food supply chain which accounts for around 20% of our private sector - around 100,000 jobs. In total, our output is approximately £5bn, of which some £4bn leaves Northern Ireland, destined mainly for Great Britain, but also to 70 other countries around the world. The challenges of Brexit, and in particular the continued threat of a no-deal Brexit, continue to dominate and overshadow the future prospects of our vibrant industry. NIFDA has been very clear about what a no-deal Brexit would mean for the sector. Northern Ireland is uniquely affected by Brexit - while England imports 50% of its food, we export 80%. Recent government analysis reported by the BBC estimated that in a no-deal scenario, the agri-food sector would take the brunt of the damage, with NI goods exports falling by up to £1.1bn annually compared to a backstop scenario. Clearly, we must do everything we can to avoid this, and NIFDA continues to lobby and engage with government on behalf of the industry. We must be able to continue to move goods and access labour in the future if we are to survive. Despite the ongoing challenges, I continue to be inspired by the passion, integrity and innovation displayed by our local food and drink industry. It is an industry which deserves to be championed and one we should be proud of. We must work together to support its future growth and development.
COMMENTARY
A VITAL COG IN THE SUSTAINABILITY OF OUR RURAL COMMUNITIES THE RED MEAT SECTOR WILL HAVE MANY CHALLENGES TO FACE OVER THE COMING YEAR, NOT LEAST THE CONTINUING UNCERTAINTY SURROUNDING BREXIT, SAYS IAN STEVENSON CHIEF EXECUTIVE OF THE LIVESTOCK AND MEAT COMMISSION FOR NORTHERN IRELAND (LMC)
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s the organisation responsible for supporting, examining and informing the marketing and development of the Northern Ireland beef and sheep meat industry, we are delighted to be asked to comment on the Top 75 list of Local Food & Drinks Companies. All of these companies are major contributors to the Northern Ireland economy and what is striking about the list is the scale of businesses involved in our local agri-food sector, with combined turnover of the top 10 businesses on the list exceeding £5bn. Many of the businesses are family owned and, with locations right across Northern Ireland and beyond, every business on this list represents a vital cog in the sustainability of our rural communities. In the case of the Northern Ireland red meat industry, its importance is reflected in the fact that Dunbia, Foyle Food Group and Linden Foods have all made the top 10. A network of cattle and sheep farmers from across Northern Ireland supply these businesses with locally-produced livestock from farms which have adhered to independently-verified standards of animal
health and welfare, care for the environment, traceability and food safety. These exportapproved meat companies are then actively involved in the slaughter, processing, packing and supply of premium quality beef and lamb products for customers in the UK, Ireland, Europe and third country markets. Some highly specialised and innovative secondary processors of red meat, such as C&J Meats, Bawnbua Foods, Doherty & Gray and Kettyle Foods are also included on this list. All of these businesses specialise in adding value to meat products and meal solutions for domestic and international customers in the retail, foodservice, butchery, wholesale and export markets. Elmgrove Foods also provides an essential service to the local red meat industry. They focus in the supply of offal and ‘fifth’ quarter products from the abattoir and meat processing sectors to domestic and export markets. This helps industry to capture the best value for every component of the animal which can be sold, particularly those elements which are not as popular with consumers in the domestic
marketplace. Elsewhere in the top 75, other meat companies have a very strong presence including Moy Park, which is top of the list. This locally-based business is perhaps best known for producing chicken. However, it is also active in the beef sector through its Moy Park Beef Orleans facility in France which processes and supplies beef patties to McDonald’s restaurants in France and Belgium. LMC wishes the continued success and growth of every business on the list as well as many others who didn’t feature this year. The sector will have many challenges to face over the coming year, not least the continuing uncertainty surrounding Brexit and what the outcome of negotiations may mean for future trading arrangements, regulation, labour availability and support to the industry. What is clear is that the Northern Ireland food and drink industry will continue to adapt to its operational environment and, with excellent people at the helm of all these businesses, there is no doubt that new opportunities will continue to emerge and be taken up by our local food and drinks companies. TOP 75 LOCAL FOOD AND DRINKS COMPANIES • 13
PROFILE
CREATING A SOLID PLATFORM FOR FUTURE GROWTH GUY WOOTTON, DIRECTOR OF CATEGORY AND INSIGHT, MOY PARK, TALKS TO UG programmes allow team members to expand their skill set and consider opportunities right across our UK and European sites.
WHAT CATEGORIES ARE PERFORMING BEST FOR MOY PARK?
HOW HAS THE PAST YEAR OF TRADING BEEN FOR MOY PARK?
We have a strategic investment programme in place to foster growth at Moy Park, and that programme saw us invest £40m in 2018 across our facilities. This included a £5m investment at our Fresh Primary facilities, including stateof-the-art equipment to debone thigh meat opening up a range of new product opportunities for our customers. By continuing to invest in our industry-leading agricultural base and processing facilities, along with a focus on innovation and the latest technologies, we will ensure a solid platform for future growth.
WHAT HAVE BEEN THE MAIN CHALLENGES AND OPPORTUNITIES FOR THE BUSINESS?
The UK retail and food manufacturing market is highly competitive and there are a number of external challenges - which are impacting us collectively - that we are in the midst of addressing. Inevitably there is the evolving Brexit situation and the corresponding uncertainty associated with it, such as lower consumer confidence. We are also managing rising input costs across a number of areas, which puts a greater emphasis on continuous improvement and driving efficiency. However, the biggest challenge for all of us in the poultry industry will be meeting consumer expectations of great value, whilst also addressing their concerns around environmental and sustainability issues, and their desire for increasingly healthy, convenient choices. We continually challenge ourselves to innovate to help our customers stand out from the crowd. Earlier this year we launched an ambitious 14 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
new campaign to tackle the use of plastics and packaging across our business. Moy Park plans to reduce its overall usage of packaging by 5% year on year while also increasing the percentage of recyclable packaging by 5%. Joining Pilgrim’s in 2017, and growing together in the time since, has provided the company with both the opportunity to accelerate growth plans and share best practices both ways, in order to meet and exceed the needs of our customers and consumers. We feel we are starting to reap the rewards of this relationship.
HAS MOY PARK INVESTED IN ITS NORTHERN IRELAND SITES AND EMPLOYEES?
The last number of years have been significant for Moy Park following a number of investments and developments across our key pillars – people focused, customer focused, food safety & quality, agriculture heritage, operational excellence, CSR, that have left us well positioned for future growth. We unveiled a new Food Lounge at Craigavon following a significant investment, with this creative space including a state-of-the-art kitchen, culinary library and a breakout area for customers. The Food Lounge is being used by the company for food innovation and development. At our Dungannon site, investment has been made in advancement processing, including thigh meat harvesting with an inline deboner machine. At Moy Park, we place a great emphasis on providing staff with career development prospects and help them understand how we can develop and harness their talent with exciting career paths and ‘on-the-job’ learning. Our suite of training and learning initiatives and
Fundamentally, UK consumers love fresh, locally-farmed British poultry, and we don’t see that changing. In the last year, we have seen all four of the chicken cuts we focus on (fillets, whole birds, dark meat and ingredients) grow in volume terms, with all but plain whole birds also seeing value growth. We have launched many new products over the last 24 months including a number of gluten-free products across our customer base. We see ourselves as a ‘Starter to Dessert’ foodservice provider and were pleased to launch new vegetarian goujons to this marketplace. Whilst there has been a great deal of publicity about the growth of plant-based eating, chicken’s strong credentials as a healthy, versatile and good value protein see it continue to grow, with 91% of UK households buying fresh chicken in the last year (source: Kantar Worldpanel, 52 weeks to 21st April 2019). From an NPD point of view, we have been focused on meeting consumer needs across our key platforms of health, excitement, ease, quality and value. A good example of ‘ease’ is our launch of ‘no touch’ packaging for primary chicken, which means that consumers don’t need to handle raw chicken. Our research shows over a third of consumers have at least some aversion to touching raw product, so this is a great innovation for a large section of the consumer base.
WHAT ARE MOY PARK’S PLANS FOR THE COMING YEAR?
Our investment programme is a basis for us to build upon for a better future, to seize the opportunity to really accelerate our growth rate and deliver great results. Part of our focus will be driving ownership and accountability to all levels in our business, increasing our pace and agility. We will continue to invest in the main pillars of our business – including our people through ongoing learning, training and career development opportunities. This applies to the future leaders of agri-food as well as participating in a variety of outreach programmes with schools and universes and offering a number of graduate and apprentice places. Key to Moy Park’s continued success is our commitment to recruiting new and developing existing talent. This is evidenced by the various training and recruitment programmes we offer, such as our two-year Graduate Management Trainee programme and apprenticeship programmes. It is important for the agri-food industry to embrace schemes like these as they are an important tool in attracting people when we are competing with other sectors for the best talent.
PROFILE
HENDERSON DIVERSIFIES FRESH OFFERING TO DELIVER DAILY CONTINUED INVESTMENT IN ITS COMPANIES, PEOPLE AND NETWORK OF COMPANY-OWNED AND INDEPENDENT STORES IS BOOSTING RESULTS FOR THE RETAIL GROUP
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enderson Group, which runs their Wholesale, Retail, Property and Foodservice companies from their headquarters in Mallusk, have posted a turnover of £853m for the 2018/19 year and are placed at number two in Ulster Grocer’s Top 75 Food & Drinks Companies for 2019. The past year has seen an elevated focus on diversifying the fresh food offering throughout the company’s 400+ SPAR, EUROSPAR, VIVO, VIVOXTRA and VIVO Essentials stores in Northern Ireland, from partnering with even more local food producers, to creating speciality fresh food counters within the stores. The investment, which has exceeded £1m in the last year continues to enhance the retail network which increased by 19 stores in 2018, including that of SPAR Fortfield, a concept store which has been the flagship store for Fresh, including the first ever BARISTA BAR CAFÉ, a progression of the BARISTA BAR Coffee brand. Paddy Doody, sales & marketing director at Henderson Group, says that the year has been one of continuing to respond to consumer demand and the behaviour of shoppers: “The way consumers shop has changed quickly, and it is up to us to ensure we’re responding to these changes with positivity and fresh thinking. “Our food-to-go offering has therefore diversified alongside these changes in consumer behaviour, helping to enhance the average shopper’s journey in our stores. Across our stores, you’ll find various versions of our Daily Deli counters to suit the local area. There is no one-size-fits-all and we’re proud that we can provide those points of difference for each community.” As well as store refurbishments and upgrades to facilitate these changes, there are new products and concepts being trialled across the network to assess the response of shoppers. Current key initiatives include a selfservice chicken bar, loaded fries station and the introduction of SPAR Bakery. Paddy continues: “We introduced our Bakery concept to the new EUROSPAR Lagan Valley store at the end of 2018 where we have a fully qualified baker on site, baking fresh products and sharing advice and tips to the shoppers, much like our in-store butchery counters in over 60 EUROSPAR community supermarkets in Northern Ireland.” The team has been hard at work positioning the new concepts within the market, ensuring shoppers know that all of the essential products and services are available, but a new level of quality, value and choice can be expected. In fact, the marketing team has just been
16 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
THE WAY CONSUMERS SHOP HAS CHANGED QUICKLY, AND IT IS UP TO US TO ENSURE WE’RE RESPONDING TO THESE CHANGES WITH POSITIVITY AND FRESH THINKING. OUR FOOD-TO-GO OFFERING HAS THEREFORE DIVERSIFIED ALONGSIDE THESE CHANGES IN CONSUMER BEHAVIOUR, HELPING TO ENHANCE THE AVERAGE SHOPPER’S JOURNEY IN OUR STORES.” Paddy Doody, sales & marketing director at Henderson Group
awarded the Excellence in Marketing accolade at the recent Belfast Telegraph Business Awards for their inSPARation campaign. The campaign placed local suppliers and their products at the fore alongside meal inspiration. It resulted in an increase in wholesale sales, additional customer shopping trips and an improvement in shopper perceptions for the brand. Shopper experience has been enhanced thanks to the innovative technology services available in-store, with Henderson Technology’s EPoS systems evolving to include new selfservice checkouts. Paddy continues: “Many of our stores have adopted at least one self-service checkout option, which is another way to add to the shoppers’ experience and journey in store. We’re also trialling a new app which Henderson Technology has developed alongside Ubamarket, which helps retailers with stock control as well as allowing shoppers to navigate our stores, pick and pay for products at their own convenience.” The year has also been a bumper one for Henderson Foodservice; at the beginning of the year the company acquired Foodco in line with their future strategy and expansion. This includes a £25m investment in new facilities, staff and business development. The company was also successful at the Belfast Telegraph Business Awards, taking home the Excellence in the Development of Management and Leadership award. Paddy finished: “We continue to invest throughout our companies, our people and our network of company-owned and independent stores which are thriving throughout Northern Ireland; we’re delighted to see the investment bring success to our hardworking store owners and even better services and products to our local communities.”
SPONSOR PROFILE
STRENGTH IN PEOPLE, LOGISTICS & CONTINUOUS IMPROVEMENT Russell Johnston, general manager NI.
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e are delighted to be able to sponsor the Ulster Grocer Top 75 Local Food & Drinks Companies 2019. The FMCG market has been the anchor of our success and growth over the years and PRL has long been the go-to outsourcing and field marketing company in Ireland for brands and retailers alike. Russell Johnston, general manager NI, says: “Our range of services have grown through client demand over the past number of years, from traditional field marketing services like merchandising, outsourced sales and market research to incorporate technical services like installation and maintenance of retail and on trade equipment. When we sat down to examine what our area of expertise was, we soon came to the conclusion that people, logistics and continuous improvement are where our strengths lie. This meant we knew we could employ expertise in any skill set and drive return on investment for clients in any area of their business. PRL are now a formidable partner for brands and retailers, allowing us to continue to grow our range of services with current clients and drive efficiencies throughout their supply chain, while offering a one top shop to brands trying to better connect with their customers at the point of purchase, which is where we succeed.” Effectively we can now sell your products to your customers with a sales team dedicated to your brands. We can bring the stock in from Europe or GB, distribute them directly to your customers, invoice and handle finance, and finally put them in danger of being sold in store through bespoke marketing campaigns, product
merchandising and placing PoS designed and developed by our own teams. To give you an idea of the scope of our services on an island of Ireland basis, we now have over 1,000 employees, a turnover of over £100m, over 500 team members working in the field on behalf of our brand partners, shipping over 90 million cases per annum in over half a million store visits per year. They’re impressive numbers for anyone operating in FMCG in the island of Ireland, and now our job is to make potential partners aware of the how the size, scale and level of expertise we can offer right across their supply chain and sales operations can make them leaner, more efficient and ultimately drive return on investment. Within Northern Ireland, we have a relatively small market so our tactical blitzes have proved increasingly popular with brands who struggle to drive return on investment from full-time dedicated sales and merchandising teams. We have had great success in driving NPD, distribution and rate of sale through short-term sales blitzes, covering the whole market in a matter of weeks with a specialist team, with clients availing of the benefits of increased distribution, space and in-store theatre for a period after our teams have blitzed the market. The data we pick up on both blitzes and our ongoing dedicated sales contracts, gives brands fantastic insight into the ‘why’s’ of their performance; not just what their performance is. For example, EPOS data will simply tell you what you have sold, whereas our instore data will pinpoint that the spike in sales was due to specific in-store factors such as distribution points, space on shelf, competitor activity or secondary display. This level of insight gives huge added value to our clients and helps them address issues and plan strategically for their brand’s growth. With promotions and events, we help our brands to bring theatre and consumer interaction to their market. From handling the logistics and installation of stands and stalls to providing and managing the promotional staff, we handle every aspect of this for our brands. Our staff are fully trained sales people and, as well as putting your product right into the hands of your consumers, we pride ourselves on the feedback we are able to provide from the market. We are constantly learning from our clients which allows us to bring best practice and learnings to every project we undertake. We believe our specialised training is the best the market has to offer, demonstrated by the number of ex-employees currently operating throughout the FMCG market in Ireland; many at the highest level.
With the ever-changing face of High Street retail moving towards the internet and retail experience, 2018 saw PRL constantly upskilling and retraining our field engineers and installers to move towards installing technology-driven retail displays and experiences as opposed to the more traditional cardboard secondary displays. This has driven us to grow our preventative maintenance offering as these permanent stands often need updated and maintained to ensure the consumer experience is at its optimum level. Northern Ireland convenience and impulse stores have traditionally been ahead of the curve versus GB in terms of services and the retail experience. 2018 saw further advances in this channel with the main players in NI introducing new concept stores and pushing the boundaries of a traditional neighbourhood store. At PRL, this has given us the opportunity to drive sales for our FMCG clients through ensuring their core range is on shelf, maximising promotions, gaining secondary display and driving distribution of NPD, all of which are a major factor in increasing their sales in C&I. While the current market is proving
SPONSOR PROFILE
challenging in terms of low unemployment levels, resulting in more challenges finding the right staff in both permanent and contract roles, it drives home the importance of finding the right recruitment partner for businesses. This helped embed our recruitment service into our existing clients and opened the door to many new clients throughout the year resulting in a strong first half performance. In October we were recognised by our industry peers in the UK & Ireland Field Marketing Awards with a number of gold awards for our work in the field and our customer marketing projects with Custodian. Crucially we were awarded the Silver Award for the Best Field Marketing Agency in the UK & Ireland, despite only operating in Ireland at this point. This recognition has helped to secure our first move into the GB market with a new team of retail merchandisers covering GB from the start of March 2019. We are extremely proud that our work in Ireland has been recognised as trusted as best in class. Our intentions are to grow our offering in GB over the coming years and this is a first crucial step. Choosing a partner to represent your products
OUR RANGE OF SERVICES HAVE GROWN THROUGH CLIENT DEMAND OVER THE PAST NUMBER OF YEARS, FROM TRADITIONAL FIELD MARKETING SERVICES LIKE MERCHANDISING, OUTSOURCED SALES AND MARKET RESEARCH TO INCORPORATE TECHNICAL SERVICES LIKE INSTALLATION AND MAINTENANCE OF RETAIL AND ON TRADE EQUIPMENT. WHEN WE SAT DOWN TO EXAMINE WHAT OUR AREA OF EXPERTISE WAS, WE SOON CAME TO THE CONCLUSION THAT PEOPLE, LOGISTICS AND CONTINUOUS IMPROVEMENT ARE WHERE OUR STRENGTHS LIE. “
and brands out in the market place is possibly one of the most fundamentally-critical decisions you’ll ever have to make at work. At PRL, we work with our clients very much as a business partner rather than just a service facilitator and have a strong track record in building successful long-term partnerships with brands. We work in both the multiple, and convenience and impulse sectors and because we have long term relationships with a range of blue chip FMCG brands, we have a strong presence in all these channels with our multi-disciplined sales support personnel in-store developing effective partnerships. We believe the service we offer is the best in the market with clients regularly commenting on how we make the process stressfree for them while keeping communication firmly open. If you have a requirement for anything to be competed in the field, give us a call. No matter how large or small the project, the chances are we have experience of it.
Tel NI : 02890 770999 • ROI: +353 1 450 8881 Web: www. Prl.uk.com
PROFILE
ROBUST ORGANIC GROWTH PROPELS SHS GROUP TOWARDS TOP OF LIST ULSTER GROCER SPEAKS TO ELAINE BIRCHALL, CEO, SHS GROUP
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he SHS Group was founded in 1975 and operates in the fast-moving consumer goods (FMCG) sector in the UK, Ireland and internationally. Since its inception, the Group has evolved from a traditional family-run sales and marketing company into a multinational operation with a turnover in excess of £545m and profits before tax of £24.5m driven by innovation, new business, brand investment and acquisitions. From its Belfast headquarters, the Group’s commercial divisions are supported by centres of excellence including Information Systems, HR, Finance, Finance Shared Service, Procurement, Logistics, Customer Services and Corporate Affairs. Employing over 1,000 people, the company owns brands such as WKD, Shloer, bottlegreen, Merrydown Cider, Meridian nut butters, Rocks squash drinks, Zip firelighters and Maguire & Paterson matches and it also distributes a portfolio of well-known brands including Jordans, Ryvita, Pot Noodle, Finish, Mars Drinks and Colgate. In addition to its extensive portfolio, the SHS Group is a market leader in the supply of own-label herbs and spices in Great Britain and manufactures a range of branded and private label condiments and sauces. 20 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
The Sales & Marketing divisions in the UK and Ireland delivered double digit top-line growth in their core business, and there has been significant investment in developing new routes to market within the Drinks Division. Both the Condiments & Sauces and Sales & Marketing Division in the UK and Ireland
have won significant new business, and the Group is growing its international presence through a two-tiered approach: new product development and development of new markets. In 2018, the SHS Group acquired a majority shareholding in the 3V Group, owner of the Meridian and Rocks brands. Meridian is the leading brand of nut butter across the UK and Ireland, while Rocks is the leading brand of organic squashes in the UK. The previous year, the business acquired international ignition supplier, Standard Brands and no&more, a UK craft water-based drinks company. The acquisitions align with the Group’s strategy, which is centred on delivering long-term sustainable growth through supporting its brand and customers across multiple channels and select markets. Along with robust organic growth, these acquisitions are an important step in the company’s overall business strategy of marketing quality FMCG brands to a wide range of channels and geographies. Anchored in their family values, the Group recognises that the way in which they manage their business and interact with their employees, business partners and wider community is critical to long-term success.
PROFILE
Âť DUNBIA
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unbia is one of Europe’s leading food companies. Founded in 1976, Dunbia is a family business with down to earth values, and the desire to create better food naturally is the driving force behind everything they do. Through a combination of organic growth, strategic acquisition and entrepreneurial vision, Dunbia has grown into a multi-site, multi-species operation, processing cattle and sheep for national and international markets. Headquartered in Northern Ireland with 12 sites throughout the UK, Dunbia is a division of Dawn Meats, employing over 5,200 people across a wide range of high-tech and multi-skilled disciplines. Dunbia is at the cutting edge of new product development, winning numerous industry awards.
PROFILE
ONWARD AND UPWARD FOR DALE FARM
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ale Farm has been experiencing a period of significant and profitable growth and is now the largest UK farmer-owned dairy cooperative, employing 1,300 staff across nine sites in Northern Ireland and Great Britain. The company’s brand portfolio includes household names such as Dale Farm, Dromona, Fivemiletown and Spelga – spanning milk, cheese, butter, spreads, yogurt, ice cream and desserts. Nick Whelan, Group chief executive with the dairy cooperative, says a transformation in culture and strategy has helped elevate the Dale Farm business in recent years: “Dale Farm has an evolving culture, built around ambition, curiosity, teamwork, positivity, resolve and accountability. There is a great sense of momentum within the business that is helping transform Dale Farm through the cultivation of a can-do, winning ethos.” The implementation of a five-year growth strategy has seen Dale Farm introduce ‘lean principles’ across the business to drive efficiencies and build strategic partnerships with key customers. Halfway through this strategy, significant progress has already been made, with profits doubling within that time. For Nick, attracting and retaining world class talent has been at the heart of this success: “Perhaps the most significant factor has been the rollout of a people programme centred around recruitment, mentoring, training and development of our talent, without whom the business wouldn’t be where it is today,” continues Whelan. Dale Farm is currently processing around one billion litres of milk, with three milk pools in Northern Ireland, the Lake District and Scotland.
While Dale Farm remains strong in the traditional dairy product categories, innovation and new product development also play a key role in the company’s strategy. Roughly a third of its products have been generated over the last three years. The company is set on growing its domestic market share as well as strengthening its presence in export markets. This is demonstrated through its current major all-Ireland sales and marketing programme for Dale Farm Ice Cream. Looking forward, Nick Whelan believes that whilst the industry is facing the challenge of a changing political and economic landscape, Dale Farm is well equipped for the future. “Brexit is a development we are of course extremely mindful of, but we remain completely focused on growing our business. “Food security will become a central element of a UK Food Strategy for the future, given the growth in global population, the westernisation of diets, water supply and soil erosion. The UK
DALE FARM HAS AN EVOLVING CULTURE, BUILT AROUND AMBITION, CURIOSITY, TEAMWORK, POSITIVITY, RESOLVE AND ACCOUNTABILITY. THERE IS A GREAT SENSE OF MOMENTUM WITHIN THE BUSINESS THAT IS HELPING TRANSFORM DALE FARM THROUGH THE CULTIVATION OF A CAN-DO, WINNING ETHOS.” Nick Whelan, Group chief executive, Dale Farm
will have to look to indigenous supply more, especially in dairy. This is a true opportunity for Dale Farm. “We are very proud of the sheer expertise we have within our farms. We have genuinely worldclass, dedicated, knowledgeable people who are at the cutting edge of the science of farming. That considered, we are hugely optimistic about the future.”
TOP 75 LOCAL FOOD AND DRINKS COMPANIES • 23
PROFILES
» COCA-COLA
HBC IRELAND AND NORTHERN IRELAND
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oca-Cola HBC Ireland and Northern Ireland is the franchised bottling partner to The Coca-Cola Company for the island; responsible for the manufacture, distribution, sale and channel marketing of its non-alcoholic ready-to-drink beverage portfolio. It produces global brands Coca-Cola, Coca-Cola Zero Sugar, Diet Coke, Fanta, Sprite, Appletiser, Schweppes and the 1783 range, as well as locally-owned brands Deep RiverRock and Fruice. The business has a strong heritage in Northern Ireland and celebrates 80 years of bottling operations this year. Coca-Cola HBC is also a significant employer in the region. The business employs 740 people across the island, with more than 450 people employed in Northern Ireland through its manufacturing and office facility in Knockmore Hill, Lisburn. The Lisburn plant serves the island of Ireland market, with 93% of all product sold produced in Northern Ireland. Coca-Cola HBC contributes £27m to the local economy through direct, indirect and induced wages and £59m Gross Value Added. Following an initial £93.5m investment, Coca-Cola HBC has continued to invest in the facility since opening its doors in 2010. Approximately £5m was invested in the facility over the last year, and the business has plans for further capital investments in 2019. Coca-Cola HBC attributes its continued market-leadership success to its unwavering commitment to sustainability and strives to play a valueadding role in local communities. In 2018, the Coca-Cola system launched its World Without Waste strategy, with localised commitments to make its packaging more sustainable. This global strategy sets out an ambition to design more sustainable packaging; to collect and recycle the equivalent of every bottle or can sold by 2030; and to partner with NGOs, customers and stakeholders to help clean up the planet.
» MUSGRAVE NI
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usgrave operates a network of family owned independent SuperValu, Centra and Mace retailers across the island, which collectively help to feed onein-three people in Ireland. Musgrave recently celebrated 35 years of business in Northern Ireland. Over the last four decades, the company has made its mark on communities right across the province as a committed local employer, supporting over 5,000 jobs, and a dedicated partner of almost 130 retail families. Growth for the SuperValu, Centra and Mace brands has been driven by consumer demand for on-the-go food and beverages, along with growth in its premium own-brand ranges, SuperValu Signature Tastes and Centra Inspired By, alongside new in-store concepts and experiences that have been rolled out across its network, as part of a drive to ‘redefine convenience.’ Over the last two years, artisan on-the-go coffee brand, Frank and Honest has been introduced to 110 SuperValu, Centra and Mace stores across Northern Ireland as part of an all-Ireland roll out. With over 700 Frank and Honest locations across the island of Ireland, Frank and Honest is now the largest on-the-go coffee brand on the island. Building on the success of Frank and Honest, Musgrave has established new food-to-go brands including Green Kitchen –a brand that allows customers to create their own salads from a wide selection of fresh ingredients. Further new concepts that will be rolled out in Northern Ireland include Moo’d –an ice cream brand that combines the best Irish dairy and Italian ingredients, and Caramico – a premium pizza range which will be freshly cooked in stone-based ovens in-store at select Centra stores.
» FOYLE FOOD GROUP
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ith more than 40 years of expertise in the beef slaughtering and deboning industry, Foyle Food Group operates nine state-of-theart facilities across six sites throughout the UK and Ireland. It’s the largest single species food processor in the United Kingdom. It slaughters and debones over 7,500 cattle each week across its five primary processing plants and renders 1,500 tonnes a week ensuring all its waste is handled in-house. Foyle Ingredients is its newly installed catering and retail plant, which delivers premium retail packs to many high-quality blue chip customers. Investment in the latest technology allows Foyle to achieve optimal quality, presentation and value for money in its brand–ready retail and catering packs. It offers a full range of boneless and bone-in product, expertly prepared and packed to the exact specification of clients. Furthermore, latest technology enables Foyle to be supremely flexible in the processing of fifth quarter products to meet varying demands from global markets.
Its brand portfolio is aimed at making it simple for customers to choose the Foyle product that’s right for them. From its premium, dry–aged Blackmoran Angus and restaurant–ready Foyle Gourmet to its value range, each product is prepared according to specific criteria and many are internationally recognised for their quality credentials. In recent years, Foyle Donegal became the first Irish company to send beef to China in over 20 years.
PROFILES
» DIAGEO
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iageo is the world’s leading premium drinks business with an outstanding collection of brands including Guinness, Harp, Smithwick’s, Carlsberg, Smirnoff, Captain Morgan, Baileys, Tanqueray and Johnnie Walker. With products sold in more than 180 countries around the world, Diageo is one of Northern Ireland’s major exporters in the food and beverage sector. Diageo Northern Ireland employs over 300 people across three sites including the global Baileys facility at Mallusk, a bottling and packaging plant in Marshall’s Road, East Belfast and the NI corporate headquarters at Capital House in Belfast which is home to Customer Services and Credit Management for the island of Ireland. 70% of all Baileys sold worldwide is produced at the facility in Mallusk, which was opened in 2003. During peak production, over 400,000 bottles per day are produced, the equivalent of 1.6 million litres of liquid produced each week. The Marshalls Road operation is responsible for the bottling, canning and packaging of Guinness, Budweiser, Carlsberg, Harp, Smithwick’s and other beers. Diageo recently announced an investment of £16m to reduce the amount of plastics used in its beer packaging by removing the plastic ring carriers and shrink wrap from its multipacks of Guinness, Harp, Rockshore and Smithwick’s. Diageo’s bottling and packaging plant in Northern Ireland will be the first site that will be up and running with the new packs, with the business investing £8m in its facility in east Belfast.
» SKEA EGGS
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kea Eggs is a family-run business that started producing and packing eggs back in the 1970s. Skea Eggs employs approximately 145 people at its site, which is based just outside Donaghmore in Co Tyrone, packing and distributing approximately 8.5 million eggs per week to major retailers across Northern Ireland and the United Kingdom. Some of its eggs go as far as Hong Kong. Its product range includes Organic, Free Range, Barn, Cage and Omega 3 eggs. Skea sources eggs laid by hens on local Northern Irish farms from around 1.8 million birds. All the farms it sources from have been certified by the British Egg Industry Council and its Organic, Free Range and Barn egg farms have been RSPCA Assured. Skea Eggs’ central location enables it to work closely with farmers and ensures its delivery of top-quality fresh eggs to customers.
» TAYTO GROUP
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stablished in 1956, Tayto Northern Ireland’s parent company, Tayto Group, is the largest privately-owned crisp and snack manufacturer in the UK, producing more than five million bags a day across seven sites and exporting to more than 40 countries across the world. It is also the number one crisp brand in Northern Ireland*. With over 1,450 staff across the Group, of which 350 are in Northern Ireland, Tayto remains a family-owned business with a portfolio that includes Golden Wonder, Real Crisps, Mr Porky, The Real Pork Crackling Company, Midland Snacks, Jonathan Crisp, Portlebay Popcorn, Ringos and, of course, Tayto. Tayto, famous for its Tayto Castle and Mr Tayto visitor experience in Tandragree, is currently investing £1m in its brand assets and new product development. It recently launched its largest-ever TV, digital and promotional campaign and revealed new-look recyclable and redesigned packaging. The multiple award-winning, family-owned company prides itself on using quality local ingredients and materials to produce great-tasting crisps and snacks for everyone to enjoy. Its Taste of Home campaign marking NI Year of Food & Drink, during which the iconic brand celebrated its 60th anniversary, was named Best Marketing Campaign at the Ulster Grocer Marketing Awards. The company also successfully manufactures an extensive range of private label crisps and snacks for almost all of the UK’s major retailers, as well as exporting to every continent.
An enduring feature of Tayto has been Mr. Tayto, the brand’s lovable mascot – a well-known and much-loved face which is recognised across Northern Ireland and beyond. *Source: IRI Market Place
PROFILE
S&W: A SYMBOL OF SUCCESS
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his has been another year of sustained growth for Savage & Whitten, as the Today’s symbol, which operates from 150 sites across Ireland under the Today’s Express, Local and Extra fascias, goes from strength to strength. The Today’s brand was introduced in Ireland by Savage and Whitten 10 years ago and was a major deviation from its early 20th century origins as a cash and carry for local Newry retailers. Commenting on the success of Today’s, Managing Director Dessie Boyce recognised the importance of Savage and Whitten’s team efforts: “It is very satisfying that our symbol model continues to gain market share in a very competitive sector – this is testament to the efforts of the team to continually improve our service levels and competitive pricing.” A big success for the company has been the chilled, fresh and frozen category which commenced trading in 2016, introduced primarily to support the roll-out of the Today’s fascia in Northern Ireland, and take advantage of the increasing trend for fresh food and healthier lifestyles, it now accounts for over 15% of the company’s turnover. Such is the growth in this area that additional chilled capacity has recently been added and a substantial increase in frozen capacity is planned. Savage and Whitten Sales Director, Michael Skelton, who has been responsible for driving the success of Today’s symbol in Ireland, explained: “It is a simple but attractive model to independent retailers, attributable not only to the no-fees, noncontractual approach, but more importantly, to the support services given to retailers.” As Michael explained: “Today’s retailers are supported with a full-store development package including category management and marketing; they also have access to Savage and Whitten’s in-house EPOS 26 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
system Re-scan, which is highly lauded by users for its comprehensive functionality and ease of use, essential to success in busy convenience stores.” Today’s symbol is not the only success story in Savage and Whitten; over the last few years, it has recorded significant growth across all markets, not least through their contract service which has grown substantially from when it was first introduced in 2016. The strategy has been to continue to develop and strengthen their sales structures, expanding into new geographic areas, whilst working ever closer with IT partners to improve the quality of offering to both Today’s symbol stores and independent customers. Investment in technology and systems has been core to the success of the business, especially the e-commerce website which now enables 80% of all orders received. The online facility allows customers to view 6,500 SKUs pictorially, minimising input errors whilst also giving them immediate access to online statements, invoices and order histories. Not surprisingly, this has been successful with customers, allowing time-starved retailers more time to focus on the front end of their businesses. Continuing the productivity improvements, Savage and Whitten have developed a bespoke CRM system in conjunction with its IT supplier; this will combine the best of business intelligence know-how with productivity tools to ensure that maximum mutual benefit can be realised by both wholesaler and customer. In a year of major changes in the grocery landscape across the UK, Savage and Whitten’s wholesale buying group, Today’s, merged with Landmark wholesale to create Unitas, the largest buying group in the UK with £8.2bn of combined buying power. This is an excellent development for members, affording them the
SAVAGE & WHITTEN WHOLESALE LTD STATEMENT END DATE: 31/12/2017 CURRENT TURNOVER: £85.1m PREVIOUS TURNOVER: £72.2m EMPLOYEES: 199 NET WORTH: £4.2m PRE-TAX PROFIT: £1.7m
opportunity to buy competitively and, in turn, create value for their customers. Savage and Whitten intend to keep growing - the combination of national buying power and local supplier relationship enables delivery of value to all our customers across Ireland.” We have very clear goals for the future ,“as Managing Director Dessie Boyce told Ulster Grocer. “First, we want to increase our retailers’ market share,” he says. “Next, we are looking to expand our chilled and frozen ranges - this will continue to provide significant growth opportunity. And finally, we want to continue to enhance our IT systems - working more productively will benefit both our retailers and us. We plan to make Savage and Whitten the ‘go to’ wholesaler and symbol operator across the entire island of Ireland.”
PROFILES
» ANDREWS FLOUR
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ndrews Flour is delighted to be recognised as one of the top local food and drink companies in Northern Ireland. Established in 1722, Andrews Flour is the oldest independent flourmill on the island of Ireland, with a proud and vast history. Andrews Flour sources highgrade, quality wheat from all over the world and creates the finest flours using its 297 years of combined knowledge and experience in milling. Andrews Flour has been supplying the bakery trade throughout the island of Ireland with exceptional quality flour products for generations, in both bulk tankers and in 25kg bags. In addition to supplying commercial bakeries, Andrews Flour also supplies the home baking market through the consumer-facing retail brand, Mortons Flour. Acquired by Andrews Flour in 1989, Mortons Flour was established in Ballymena in 1835 and became a household name throughout Northern Ireland. Mortons Flour continues to provide home bakers with exceptional quality flour and uphold its traditional values that are reflected through its core range of plain, self-raising and coarse wholemeal flour, along with the soda, and wheaten bread mixes. The Mortons Flour range is sold across all major multiples in smaller 1.5kg, 2kg and 3kg bags. Mortons Flour continues to prosper in the baking category, with the Wheaten Bread Mix being awarded two gold stars in the 2018 Great Taste awards and also shortlisted at the 2018 Blas na hÉireann awards.
» MOUNT CHARLES
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ount Charles is Ireland’s largest, locally-owned catering and facilities service provider, servicing over 400 clients across the UK and Ireland with 2,500 employees. It delivers wide-ranging and cost effective business support services to many businesses and organisations, with contracts spanning business, industry, education, healthcare, retail, high profile sporting events and government. In the last five years, Mount Charles has revolutionised the way it approaches catering contracts. Instead of viewing traditional workplace contract catering and retail catering as two separate things, they apply retail principles to contracts, with food, drinks and pricing driven by consumer trends and demand. Their catering in the workplace is far from the typical canteen-style, transforming into a very modern, consumer-focused retail offering that caters to a seriously diverse set of taste buds. Growth trajectory in the last year has been significant and, in the last 12 months, the 2019 Deloitte Best Managed Company and multiple Institute of Hospitality award winner announced several high-profile contract wins totalling £75m. The company was recently appointed by Belfast International Airport to create a new and exciting food and beverage experience and in May 2019 launched the airport’s Northern QTR, a collection of restaurants that rivals that of any top tier UK airport. Mount Charles recently announced their strategy to hit £100m turnover by 2025 and is aggressively targeting new business throughout the UK and Ireland, seeing these markets as having major scope for future expansion.
» PRM GROUP
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RM Group is one of Ireland’s leading chilled and frozen food suppliers. Representing over 35 brands. the Lisburn-based company supply customers in Ireland, UK and mainland Europe across the retail, wholesale and foodservice sectors. Key chilled brands include Muller, Alpro, Fage, Kinder Chilled, Nomadic, Onken, Clandeboye Estate, Cully & Sully, Bernard Matthews, Innocent and Savse. In addition, the company also acts as the Northern Ireland concessionaire for the Unilever Ice-cream portfolio which includes HB, Ben & Jerrys and Carte D’Or. The company was proud to celebrate 30 successful years trading in 2018, and the total business now employs 250 people across the Commercial, Operations, Service and Production divisions. In addition to providing an award winning sales and distribution service, PRM Group also owns and produces a number of well-known local brands including Galberts, Fresh Food Kitchen and Cottage Desserts. Products are made daily at the company’s two production sites, Galberts in Altnagelvin, Co Londonderry and Cottage Desserts in Dromore, Co Down.
PROFILE
O’REILLY’S DEFINING CONVENIENCE SINCE 1959
COMING TOGETHER IS A BEGINNING; KEEPING TOGETHER IS PROGRESS; WORKING TOGETHER IS SUCCESS.” Derek O’Reilly, MD of O’Reilly’s Wholesale uses a quote by Henry Ford to highlight the ethos of his business which is now 60 years trading
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he team at O’Reilly’s always ask one very important question: ‘what can we do for you?’ Think about Game of Thrones and the survival of one of the main characters, Tyrion Lannister. Each time his survival is in jeopardy, he asks the question ‘what do you want?’ The importance of listening to the answer to this question is crucial and perhaps a big part of why O’Reilly’s continues to survive and attract
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such success. This year is a very important milestone as they celebrate their diamond 60th trading year. Whilst they often refer to their very supportive network of suppliers, they continuously nod to their very loyal customers, old and new. Derek said: “It takes the involvement of a lot of people to bring success for 60 years. Our customer base and our supplier network are wide and varied, large and small but coming
together, keeping together and working together is the utmost goal for our business.” A recent addition to O’Reilly’s Wholesale portfolio is their concept fascia for shops and stores wishing for symbol inclusivity. The One2Shop concept is available through contact with our sales team who will help and guide our customers through the process of initial chat, the spec available and the follow through to completed job, step by step.
PROFILES
» SCOTTS BAKERY
» MASH DIRECT
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cotts Bakery was established in 1968, making 2018 its 50th year in business. Based in Fivemiletown, Co Tyrone, it is a specialist producer of small cakes serving customers in Ireland and the UK market. Scotts has grown to become a leading producer in its category, with sales of over £22m per annum. Its product range has expanded, still including old favourites such as Original Iced Fairy Cakes which are hand crafted in the traditional way. New additions include Muffins, Cup Cakes, Butterfly Cakes and various recipes such as Chocolate, Red Velvet, Carrot Cake and Gluten Free. Scotts’ dedicated team of 200 employees love to excite and delight customers; the company is committed to creating quality small cakes through its technical expertise and market-leading innovation. Its systems are approved to BRC Grade AA+, SMETA, RSPO & UTZ. This ensures its raw materials, processes and final products are nothing short of exceptional - so that they taste and look fantastic each and every time. The bakery’s production plant is the result of ongoing investment in engineering and technology to enable high quality and lean manufacturing efficiencies. Continuous training is part of its culture to develop employee skills and assist the achievement of their aspirations. Its commitment to staff development is supported by local colleges; currently Scotts has nine employees working towards their degree or apprenticeship. Its business management consider trends, opportunities, enquiries and future plans on an ongoing basis and, each week, millions of individual cakes are planned, baked, packed and transported to the Irish and UK markets.
ash Direct is an innovative farming enterprise, run by family team Martin, Tracy, Lance and Jack Hamilton at their family farm in Comber, Co Down. They grow and produce quality, convenient ‘field to fork’ vegetable and potato dishes ranging from Mashed Potato and Croquettes to Home Style Salads. Mash Direct, a self-funded venture, is taking farming into the future by responding to the changing consumer behaviours when it comes to vegetables. Vegetable consumption in the UK is declining year on year and Mash Direct seeks to correct this issue by taking the time and hassle out of preparing the vegetables. With six generations of farming expertise, Mash Direct has grown from 70-1,700 acres of fields that are tailored to growing heritage varieties of vegetables grown for their distinct flavour and not their appearance. These are then steam cooked to perfection using bespoke ovens on site in the farm’s factory for the delicious taste and texture of homemade food. Now a national household brand, Mash Direct produces over 50 products that are 100% gluten free and free from artificial colourings and flavourings. Never a company to rest on its laurels, Mash Direct are continuing to grow their vegetable side dish range and adapt to changing consumer demands. They have recently launched two vegan products including Mashed Potato and Carrot & Swede amidst this fast growing culinary trend. Additionally, their salad range, which includes Crispy Apple and Kohlrabi Salad, Home Style Coleslaw and Home Style Potato Salad, have exclusively launched in Northern Ireland.
AROUND NOON PRESENTED WITH PRESTIGIOUS FAST TRACK AWARD
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Gareth Chambers, CEO, and Howard Farquhar, chairman of Around Noon.
ood-to-go manufacturer Around Noon has been presented with a prestigious award for securing a place in the Sunday Times Virgin Atlantic Fast Track 100 league table for the second year in a row. The Newry-headquartered business is one of a small number of companies to make the esteemed ranking two years in succession. The Sunday Times Virgin Atlantic Fast Track 100 league table ranks UK private companies with the fastest-growing sales. The list was announced at the end of 2018, and the awards event took place last month in Oxfordshire. Around Noon has experienced significant growth in recent years as it has increased business with existing clients and acquired a bakery and a Slough-based business to expand its sales in greater London. It supplies a wide range of sandwiches, wraps, salads, bakery products and cold-pressed juices to leading coffee shop chains and convenience retailers as well as contract caterers. “It was fantastic to be at the event, which was attended by many of the UK’s most exciting businesses and included a question and answer session with the Virgin founder Richard Branson,” said Gareth Chambers, CEO of Around Noon. “Achieving the position in the Fast Track recognises the hard work that our teams in Newry and Slough have put in to grow our business, as well as the fantastic partnerships we have with our clients and suppliers.”
PROFILE
INNOVATION, RESEARCH & EMBRACING MARKET TRENDS KEEP THE WHEELS IN MOTION FOR MACKLE PETFOODS
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o Tyrone-based family known as humanisation. As such, they business Mackle wanted to feed their pets natural, Petfoods has enjoyed high-quality food with high another incredible meat content and a choice of year, launching their new grain free food for dogs with premium natural pet sensitive digestive systems. food range, Naturo Chef’s Fast forward to 2017, Selection, which has when the team spotted the already been awarded opportunity to develop an even Superfood ingredients in Mackle Petfoods Naturo Best New Product Launch more high-end product. The Chef’s Selection premium and ‘highly commended for entire Naturo Chef’s Selection natural pet food range, innovation’ less than 10 months range is made from 100% fully launched in 2018. after hitting the market. The local traceable natural ingredients and each family firm has doubled its production has been selected for its contribution to help capacity through the addition of new state-ofmaintain pet health. Included in the extensive the art-technology at its Moygashel site. ingredients list is chicken, lamb, turkey, apple Established in 1972 by John Mackle (senior), cider vinegar, quinoa, coconut and chickpeas, the pet food company is still family-owned and cranberries, blueberries and sweet potato. run by his son John, who is managing director. Mackle Petfoods is the first pet food Many of the 220 employees joined straight from manufacturer in the UK to include apple cider school or university and describe themselves vinegar in its recipes; an innovation based on as a ‘family’; however any idea of a cosy, rural its health-giving properties. As well as acting business is put firmly to bed once customers as a natural anti-inflammatory, apple cider and visitors realise that Mackle Petfoods is a vinegar contains acetic acid which is efficiently global pet food player, built on innovation and metabolised by dogs and may help support investment. The business produces over 70 against hypertension, and reduce cholesterol million cans and 30 million recyclable plastic levels. In addition to being stringently tested trays of pet product annually to its customer for taste, Naturo Chef’s Selection is also base across 16 countries, with new countries appropriate for dogs with allergies. being introduced annually. Naturo Chef’s Selection was an instant hit The company is best known for four brands with Mackle Petfoods’ online customer base. In – Brandy, the dog food brand, Cat Club, which the 16 weeks after Naturo Chef’s Selection was celebrates its 20th anniversary this year, Naturo, launched into Tesco stores, sales increased by the natural pet food brand and the new Naturo 50%, with sales in Morrisons stores increased Chef’s Selection, which appeared online and by almost 40% in a few short months. The range on supermarket shelves in September 2018. A is available in 150g and 400g sealed recyclable culture of constant innovation, research and plastic trays. responding to customer feedback and market Production and global exporting of this scale trends is what keeps the wheels in motion at however is only possible through significant Mackle Petfoods. Its multimillion pound Naturo investment in both plant and personnel. natural pet food range was launched in 2010 Capacity at the Moy facility was exceeded, after research demonstrated that locally and leading to major £5m investment in the purchase globally, people were treating their pets more and installation of production machinery at the and more like members of the family; a trend Moygashel packing facility in 2016. With the
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Claire McNally and Laura Rafferty from the Naturo marketing team, at the launch of Naturo Chef’s Selection premium natural pet food range. In the 16 weeks after Naturo Chef’s Selection was launched into Tesco stores, sales increased by 50%, while sales in Morrisons stores increased by almost 40% in a few short months. The range is available in 150g and 400g sealed recyclable plastic trays.
success of the natural Naturo and Naturo Chef’s Selection brands, the company has plans for further investment in 2019 to deliver new pet food innovation to customers and their pets. For John Mackle and his team, the vision is to continue to grow key brands and export further at global level, bringing new staff to this pet food family business. For more information on Mackle Petfoods, visit www.macklepetfoods.com
COMMENTARY
IN THIS TOGETHER, FROM THE LARGEST MULTINATIONAL RETAILER TO THE SMALLEST FARMER WHILE A NO-DEAL SCENARIO IS UNTHINKABLE, BREXIT HAS ALSO BROUGHT OUT THE BEST IN PEOPLE WITH INDUSTRIES IN NI WORKING TOGETHER IN A WAY THAT WOULD PREVIOUSLY NOT HAVE BEEN THOUGHT POSSIBLE, SAYS AODHÁN CONNOLLY, DIRECTOR OF THE NORTHERN IRELAND RETAIL CONSORTIUM
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n a Tale of Two Cities, Charles Dickens espouses, ‘It was the best of times, it was the worst of times’. While we haven’t quite reached these polar opposites this year, it has definitely been a year of turbulence. Competition for a place in the Top 75 is intense and the entrants this year truly show the breadth and depth of the Northern Ireland food and drink offering. Our reputation across the world continues to grow and our producers, processors and retailers should be rightly proud of their products. That does not mean that our industries here have been resting on their laurels, rather the opposite. In this past year we have continued to tap into demand for our quality produce by expanding our markets in the UK, the EU and globally. While we quite rightly congratulate our biggest and most successful 75, we also must encourage those people who are newer in our marketplace but still bring something original and worthwhile to our eclectic food and drink mix. Walking around the Balmoral Show this year, I was glad to see old friends and favourites, but was struck by the number of new brands that were talking with passion and sharing not only their produce but their vision. These young brands are also teaching more established operators a thing or two about embracing new ways to engage with the consumer. For example, Portadown’s very own
Long Meadow Cider, a family business run by the McKeever clan, are turning themselves into a place-to-be as well as a product. Making use of
WHILE WE QUITE RIGHTLY CONGRATULATE OUR BIGGEST AND MOST SUCCESSFUL 75, WE ALSO MUST ENCOURAGE THOSE PEOPLE WHO ARE NEWER IN OUR MARKETPLACE BUT STILL BRING SOMETHING ORIGINAL AND WORTHWHILE TO OUR ECLECTIC FOOD AND DRINK MIX. WALKING AROUND THE BALMORAL SHOW THIS YEAR, I WAS GLAD TO SEE OLD FRIENDS AND FAVOURITES, BUT WAS STRUCK BY THE NUMBER OF NEW BRANDS THAT WERE TALKING WITH PASSION AND SHARING NOT ONLY THEIR PRODUCE BUT THEIR VISION.” the scenic County Armagh orchards, they have painting in the orchard classes, farm fun days and even winter illuminations events in the off
season with ethereal music that drew families from far and wide. All of this is promoted across social media in a personalised, friendly and engaging way. And while not everywhere has a picturesque orchard at their production site, it goes to show what can be done with a little imagination and hard work. The downside to this year has been mostly to do with the ‘B’ word. Although Brexit hasn’t happened yet, we have already seen 26% of our EU labour leave Northern Ireland since the referendum and we are not getting the influx of workers that we need to fulfil everything from picking, processing to the 20% of our logistics staff who are EU nationals. The dates in March, April and June for leaving have now passed and millions of pounds have been spent preparing for a Brexit outcome that is still unknown. This has added costs throughout the supply chain as everyone has tried to prepare by frontloading, buying or renting warehouse space, and looking at every possible weak link in the supply chain. If we get a deal, it will change how we do business across these islands and there will be costs. If we have no deal, we are looking at a fundamental breakdown of supply chains that will squeeze business and our consumers alike. But Brexit has also brought out the best in people here in Northern Ireland with industries, from farm to fork, working together in a way that would previously not have been thought possible. The NI Retail Consortium, Ulster Farmers’ Union, NI Food and Drink Association, Manufacturing NI and Dairy UK have brought your concerns and those of our consumers far and wide. In this past year, we have met with the Prime Minister, the Taoiseach, Michel Barnier and the EU Article 50 team, the Home Secretary, the Tánaiste, representatives from governments as far apart as Poland and the USA as well as countless MPs, MLAs, MEPs and officials from departments. To us, the answer is not more stockpiling, front loading or whatever your organisation cares to call it. The answer is that we need a deal to make sure that we have access to the markets and consumers we need to survive, to thrive and to grow. From the largest multinational retailer to the smallest farmer, we are all in this together. And so congratulations to the Top 75 for 2019… And for the other hundreds of agri-food heroes, keep doing what you’re doing. Your work makes a huge difference to our economy and our households. TOP 75 LOCAL FOOD AND DRINKS COMPANIES • 33
ANALYSIS
COMMERCIAL PROPERTY SALES HIGHLIGHT A BUOYANT FOOD AND GROCERY SECTOR OVERALL INVESTMENT TRANSACTIONS SO FAR THIS YEAR HAVE BEEN MODEST, WITH THE LISNEY Q1 2019 NORTHERN IRELAND COMMERCIAL PROPERTY REPORT REVEALING THAT THE UNCERTAIN POLITICAL CLIMATE REMAINS A DIFFICULT BACKDROP FOR INWARD INVESTORS
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total of £41m of commercial property investments were transacted in the first quarter of 2019 compared to £10m within the first quarter of 2018 with a further £52m agreed during this period. Declan Flynn, managing director of Lisney Northern Ireland, which specialises in office, retail, leisure and industrial property acquisition, disposal and investment, commented: “In light of local political stalemate and the uncertainty as a result of the missed Brexit deadline, it is unsurprising that the majority of these transactions have been completed by local investors. “Whilst this creates a barrier for inward investment, it is important to note that the tentative nature of the market is mirrored right across the UK, and given the assets either on the market, agreed or quietly available, we do see potential for increased transaction levels throughout 2019.” Additional headline findings from Lisney’s most recent Commercial Property Report revealed that: • Notable investment transactions include James House in The Gasworks sold for £14m and Donegall House for £9.6m • £52m of investments marketed for sale in Q1 are now noted as Sale Agreed. This includes Gateway Offices in Titanic Quarter, Timber Quay in Derry/Londonderry, and Antrim Business Park, Kilbegs Road • 106,779 sq. ft. of office take up was reported in Q1 • Immediate availability of Grade A office space within Belfast remains limited at less than 200,000 sq. ft. spread across a number of buildings • Prime retail locations in Belfast City Centre are achieving rents of £150 per sq. ft. • Discount retailers continue to be amongst the most active within the sector • Demand for industrial/logistics space driven by owner occupiers • 532 new jobs announced in the industrial and logistics sector will prompt movement through expansion or relocation “2018 was a record-breaking year for office take-up locally which totalled 885,000 sq.ft,” said Flynn. “Unsurprisingly the take up in the last three months – across 14 transactions - is less than take up within the same period last year (270,310 sq. ft.) but the sector remains dominated by tech and digital companies. “The trend for co-working space locally has 34 • TOP 75 LOCAL FOOD AND DRINKS COMPANIES
Declan Flynn, managing director of Lisney Northern Ireland
also continued to rise with some operators close to capacity. It is understood Eagle Star House will be transformed into design-led flexible workspace. “Whilst availability of Grade A space in Belfast is limited at present, the completion of Chichester House in Q4 will bring 46,000 sq. ft. of much needed Grade A stock to the city centre and the fact that there is a strong pipeline of stock to be delivered throughout 2020/2021 is encouraging.
LOOKING AHEAD TO THE REST OF YEAR, WE CAN EXPECT STRONG DEMAND FOR WELL LOCATED LARGE SPACE WITH EAVE HEIGHTS IN EXCESS OF EIGHT METRES.” “Across the UK, the retail sector has seen the lowest quarterly investment volumes traded in a decade. Company Voluntary Agreements (CVAs) and administrations continue to be amongst the headlines and Belfast city centre continues its recovery following the Primark fire last summer. “However, all is not lost for with B&M and Home Bargains unveiling plans for new stores at Belfast’s Park Centre and further acquisitions in the pipeline for 2019 and beyond. The food and grocery sector remains buoyant with Lidl leading
the way following its acquisition of a 26,000 sq. ft. site at The Junction. “Further retailers acquiring sites in Q1 include O2, Radley, Toy Town, Superdrug and Greggs. We would therefore expect to see an increased number of openings in the next six months, likely to be spearheaded by food, beverage and grocery retailers. “Activity within the industrial/logistics sector continues with a mix of letting and sales with demand being driven by owner occupiers seeking to purchase for their own requirements. Companies such as CDE Global, Terex Corporation, Edge Innovate, Finnebrogue Artisan and Boyce Precision Engineering have announced the creation of a combined 532 new jobs alongside intentions to either extend facilities or purchase new premises. “The first quarter of the year also saw trade only kitchen supplier, Howdens, enter the Northern Ireland market with a number of branches including a double bay unit in the Meadows Business Park. “Looking ahead to the rest of year we can expect strong demand for well located large space with eave heights in excess of eight metres.” Lisney’s latest report on the Northern Ireland commercial property market can be viewed in full at https://belfast.lisney.com/ research-reports/northern-ireland-commercialupdate-q1-2019/