Enterprise Ireland
Annual Report and Accounts 2004
Annual Report and Accounts 2004
Food is Ireland’s single largest indigenous industry and it plays a critical role in the continued growth and success of the Irish economy. It employs 47,000 people directly, with 40% of this figure in indigenous industry. Annual food output exceeds €16 billion, and the sector contributes €7 billion in exports.
The potential for continued growth in the food industry is enormous. Such growth will occur against a backdrop of rapid and sustained transition as the food sector becomes increasingly market driven. A new dynamic is at play as new sectors emerge that mirror lifestyle changes and consumer trends in society. Innovation, new market-led products and moving up the value chain shape the future and are the key imperatives for companies that want to be part of this growth.
The continued development of the food sector is a major priority for Enterprise Ireland. Investing in value added projects is key and 2004 was a strong year for client innovation and expansion across the industry. For example, Green Isle Foods announced a €22.6 million expansion of its plant in Naas. Hilton Foods also opened a new €12 million facility employing 145 people in Drogheda to supply Tesco stores throughout Ireland and the UK with value added pre-packed beef, pork and lamb products. In addition, the Kepak Group has established a new ‘heat and serve’ production facility at Watergrasshill, Co Cork, serving retail outlets predominantly in the UK. This facility is expected to employ up to 200 people over time. And also in Cork, Swissco Ltd will invest €6 million in a new facility to manufacture chilled ready meals which, when in full production, is expected to employ 100 people.
In addition, Kerry Group completed the second phase of a €14 million investment at its Charleville plant expanding its Cheestrings capacity to service the dynamic UK cheese snacks market. The company has also made acquisitions in ingredients and flavours, foodservice, ready meals and chilled desserts, and has set up teams to focus on the functional, sports/lifestyle and nutrition areas. Kerry Group also launched a milk rich in Omega-3 in Ireland.
Ireland’s vibrant food sector has also attracted many of the world’s top food companies such as Diageo and Nutricia. Diageo made two strategic investments in Ireland in 2004 that illustrate how attractive our economy has become as a location for highly successful global multinationals. The company launched a new €40 million state-of-the-art production plant in Waterford and is currently relocating its Guinness brewing operations from London to St James Gate in Dublin. Nutricia Infant Nutrition Ltd, one of the leading European producers of infant and clinical nutritionals invested €7 million towards a capital expansion programme at its two facilities in Wexford and Macroom to increase production and packing capacity in specialised infant nutritionals.
There is a very clear increased focus on innovation in the food industry. The primary driver is the market and the consumer, and their requirement for innovative, sophisticated and competitive products. There is particularly strong growth potential in functional foods, ingredients and beverages, and in prepared consumer foods. The companies that succeed in this environment are distinguished by their capacity to innovate on a continuous basis to meet changing consumer demands on a global scale.
Enterprise Ireland is focussed on supporting this culture for innovation in the sector through:
One example of company commitment towards innovation is the major R&D infrastructural development by Glanbia Plc. With support from Enterprise Ireland, Glanbia has established a €15 million world class Group Innovation Centre in Kilkenny that will focus on the development of high-grade nutritional ingredients for the functional foods sector.
Consumers are demanding health, wellness, convenience and value from the food industry. Wellness is a key trend and each producer must have a clear view as to how wellness is going to impact on its product range. The challenge therefore is for producers to create products that follow these trends. This requires an increased level of R&D focused on high-grade nutritional products, food ingredients and the development of strong consumer brands. The global market for functional foods is growing rapidly at between 8% and 10% per annum. These foods have additional health benefits beyond their basic nutritional value and include products such as pro-biotic yogurts, isotonic sports drinks, energy bars etc. In Ireland alone, the sector is valued at €100 million a year and growing. Globally, the functional foods sector is worth in excess of €48 billion.
In addition to supporting direct company innovation investments, Enterprise Ireland also supports other initiatives that are aimed at driving forward the innovation agenda. Some examples include: the launch of the National Functional Foods Forum; sponsorship of the World Food Technology and Innovation Forum (also planned for 2005); and an innovation and technology mission from Japanese academic and scientific institutions that met with a number of Irish food companies and research bodies to explore collaborative opportunities in functional foods, nutritionals and ingredients.
Enterprise Ireland assists companies to build strong, customer-focused, world-class management teams to lead and direct their innovation strategies. We provide access to management skills training, mentors and financial support for approved programmes.
Some examples of management development initiatives include:
