An interesting exercise to determine the challenges facing Irish food
and drink companies from the “gate to the plate” was undertaken by the Marketing Society.
Researchers Cathy Winston, David Fanning and David Cullen interviewed
15 marketing directors, eight senior communicators and conducted desk
research for an international perspective.

Cathy Winston provided a report analysis. Food production in Ireland is
not what it used to be. As a small, open economy we need exports. We
must attract high-level companies looking for an educated workforce.
Where the theory fails is in food where low cost production has seen
demand move eastwards to meet retailer demands.

Winston said the trend makes sense for clothing, white and brown goods,
computers and mobile phones, generating huge savings to consumers.
Ireland is in the most affluent stage in its history. Are we prepared
to see food production being driven back to its lowest common
denominator, just to meet retailer demands?

Is cheaper, tasteless, mass-produced food what consumers want so they
can save a few bob over the week? Who owns the companies in the supply
chain? As part of the global dynamic, ownership is influenced by
stakeholders abroad.

Performance indicators must be delivered to an overseas HQ and local
idiosyncrasies aren’t part of the big picture. With everyone in the
supply chain focused outwards, who’s looking at the long-term impact on
the country of a dwindling food production industry?

The Ireland of today is more motivated and energised by high ticket
items like cars, holidays and holiday homes. Eddie Hobbs promoting
smart choices by making savings in grocery shopping plays right into
the retailer strategy of driving manufacturers to deliver consumers the
lowest price. But at what cost?

‘We must engage a busy and distracted consumer who will take the time and pay the extra cent for Irish products and brands’ – Cathy Winston

With different agendas for retailers and manufacturers, who wins? The
current Wal-mart model delivers more for one or two retailers at a
faster rate. In the world of profits and increased share prices, this
is great news for the stakeholders and cranking things up.

Driving down prices by sourcing products from low-cost
economies, systemising business processes to deal with the vast number
of products on the shelf and removing all human initiatives is a
strategy paying off hugely for these retailers.

It’s the opposite business model to the one that manufacturers need to
meet their sales, re-ordering, NPD and product launch aims. The
investment undertaken to come into line with these changes has been
sizable, without any guarantee of continued listings.

Where does this all end for producers of Irish food and Irish brands?
If Irish consumers don’t notice Irish products and brands slipping off
the shelves because they are too busy and the alternative seems fine,
what happens back up the supply chain?

Ireland Inc is no longer competitive. IBEC has said that production will be driven out of Ireland as we become increasingly uncompetitive. With the food we grow and rear among the best there is in quality and taste, we have to develop markets globally.

We must engage a busy and distracted consumer in Ireland who will take
the time and pay the extra cent for Irish products and brands.
Otherwise, we’re in danger of being like the frog coming to the boil so
slowly that it dies rather than jumps out.

If, by 2020, we haven’t a strategy to tackle the problem, our shopping
baskets could be devoid of Irish brands and products. The gatekeeper
has changed and what is put into the weekly shopping basket has become
less important than it was in the past.

The time needed to study shelves, pick up new products and try new
variants does not seem to be there for most. Why fuss over peas when
the real decision is about Prada?

For more on the Wresting with the Boa Constrictor report, see the September issue of Marketing.