Irish food and drink manufacturers “have a lot to shout about,” says food industry CEO despite challenges in the sector.
The Irish “amazing” food ecosystem has led to Irish brands across the country growing more confident in their ability to innovate despite feeling impacts of sustained global pressures.
On Down to Business with Bobby Kerr, Love Irish Food CEO Conor Kilduff said that Irish food and beverage brands are facing an avalanche of costs.
Mr. Kilduff said that Irish brands are becoming used to global uncertainty after geopolitical events, including the recent Ukraine and Iran wars, impacted production.
“What is interesting is that the manufacturers are getting used to it. The customers are getting used to it, that actually this inflation is here and it needs to be paid for.”
These inflationary pressures followed a challenging decade in the food and beverage industry where the sector “was close to deflation.”
“Operators have adapted very well to that uncertainty”
Also on the show was Lucy Ryan, Head of Food and Beverages at Bank of Ireland, who said that geopolitical challenges have led to sector-wide innovation.
She said that manufacturers have become more sustainable and have learnt to diversify their products into different markets to not be “over-reliant on one customer.”
For example, Ms. Ryan said that Irish alcohol producers are exporting more products to Canada, India, and Mexico as a result of recent American import tariffs.
However, she admitted this cannot be done “overnight,” calling the process a “slow burn.” Ms. Ryan also mentioned how companies are examining whether they can repurpose their products in novel ways.
Looking to the future of Irish food
Ms. Ryan, who quoted a recent Bank of Ireland survey, noted that 60% of producers “continue to see opportunity” in the Irish market despite the global uncertainties.
Additionally, Mr. Kilduff said Irish consumers are “incredibly supportive” of Irish brands, and that producers have opportunities to grow through Enterprise Ireland and Bord Bia.
