Deloitte Food and Beverage Seminar 2012Irish food and beverage companies look overseas for growth |
Published 24 April 2012
- Irish food and beverage companies look overseas for growth
- High cost of doing business and consumer demand are biggest challenges in Ireland
- However 9 out of 10 companies are continuing to invest in their businesses
Just over half of food and beverage companies in Ireland have observed improvements in the export market in the last twelve months with the UK, the rest of Europe and China the top three geographic areas. The findings, which are part of the Deloitte Food and Beverage Survey 2012, contrasts with 72% who did not observe any improvement within the Irish market for the same period.
Pictured in advance of the Deloitte Food and Beverage Seminar 2012 are (from l-r): Aidan Cotter, CEO, Bord Bia, David Hearn, Head of Consulting, Deloitte and Ado Carton, Managing Director, Kerry Foods.
The survey was carried out in conjunction with the Deloitte Food and Beverage Seminar 2012 which takes place today at the Four Seasons hotel. The theme of the event, Driving Strategies for Growth, reflects the fact that while the industry faces a number of challenges, opportunities exist for growth in this competitive market.
The biggest challenges facing food and beverage companies in Ireland include the high cost of doing business, as identified by 28% of respondents, consumer demand (21%) and consumer price sensitivity (20%). Other issues include the availability of credit, high taxes and the regulatory burden.
David Hearn, Head of Consulting, Deloitte and speaker at the event commented: “Irish food and beverage companies are still facing a very challenging market in Ireland but it’s extremely encouraging that companies are seeing growth in overseas markets.”
“What’s also extremely promising is that despite the challenging marketplace, 95% of respondents stated that they are continuing to invest in their business The main areas of focus for this investment include improving efficiency, sales and marketing, people, R&D and expanding overseas. This investment will be critical to ensure that companies are well positioned to take advantage of the opportunities that international markets offer, in addition to those here in the Irish market."
Speakers at the seminar include Ado Carton, Managing Director, Kerry Foods, Aidan Cotter, CEO, Bord Bia and Tony Keohane, CEO, Tesco Ireland and areas of discussion will include the continuing challenges food and beverage companies are currently experiencing.
In terms of the overall economy, one third of respondents believe that it will be the second half of 2013 before the economy returns to growth. Improving consumer sentiment was identified as the most important factor in returning the economy to growth, followed by restoring Ireland’s competitiveness and reducing unemployment.
The survey also finds that other business initiatives currently high on the agenda of companies include working capital management, sustainability initiatives and operating model improvements. Information analysis and analytics also featured prominently.
About the survey
Attendees at the Deloitte Food & Beverage event were asked to complete this survey. Respondents were from a mix of retail, consumer products and manufacturing companies.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
The information contained in this press release is correct at the time of going to press.
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