EUROPE: Irish Dairy Board secures Tesco butter contract

By Dean Best | 19 November 2012

  • The IDB to supply butter to Tesco on four markets
  • Sees deal as key ahead of end to EU quotas in 2015 

Irish co-op The Irish Dairy Board is to supply own-label butter to Tesco stores in four markets in central and eastern Europe.

The IDB said the EUR20m (US$25.6m) deal will see it produce private-label products for Tesco in the Czech Republic, Poland, Slovakia and Hungary.

Kevin Lane, the co-op's chief executive, said the contract was a "key new route to market" before the end of EU quotas on dairy production in 2015.

"This partnership with Tesco will help us on our journey to ensure that we meet our international export and growth objectives and feeds into our strategy of significantly growing new sales into new geographies and markets," Lane said. "We're confident that this exciting new growth initiative with Tesco can be built on further in the years to come."

In an interview last month at the SIAL trade show, Fergal McGarry, the IDB's global marketing and innovation director, told just-food the co-op's main target markets were Africa, Russia and China.

Show the press release

 

The Irish Dairy Board (IDB) today announced a major contract with Tesco worth €20m for the supply of packet butter during 2012/13. 

The deal sees the IDB supplying own brand butter to Tesco's European stores in Poland, the Czech Republic, Slovakia and Hungary. The average growth of dairy consumption across these four markets is 5.1% versus the EU average of 1%.  Poland is the fourth biggest butter market in the EU and combined, these four markets consume 22 times the amount of butter consumed in Ireland. This announcement represents a significant advancement for the Irish dairy industry in these key markets. 

Speaking at the announcement today, Minister for Agriculture, Food and the Marine, Simon Coveney TD said:  ‘This new butter contract marks another successful milestone for the agri-food sector as part of expansion envisaged in Food Harvest 2020. It’s heartening to see this sector announce positive news stories as it continues to achieve real growth despite a volatile global environment.  Developing new routes to market is a crucial component of our strategy under Food Harvest 2020 and I congratulate the IDB and Tesco on their ongoing commitment to the roles they play in working to achieve our country’s export growth potential.’

Commenting on the contract Kevin Lane, CEO, IDB said, ‘Today’s announcement represents a key new route to market for the IDB as we prepare for the expansion of milk volumes ahead of the removal of milk quotas in 2015. This partnership with Tesco will help us on our journey to ensure that we meet our international export and growth objectives and feeds into our strategy of significantly growing new sales into new geographies and markets.  We’re confident that this exciting new growth initiative with Tesco can be built on further in the years to come.’ 

Tony Keohane, CEO, Tesco Ireland said, ‘With over €700m worth of Irish food exported to Tesco internationally including 13% of all dairy exports, today’s announcement reaffirms Tesco as a very significant buyer of Irish food. We are continuing to explore new export opportunities for Irish products from established exporters and emerging SMEs.’

The announcement is the latest in a series of new market developments for the IDB who is responsible for just under €1bn worth of dairy product exports from Ireland annually.

 

Original source: The Irish Dairy Board

Sectors: Dairy, Emerging markets, Private label

Companies: Tesco, The Irish Dairy Board

View next/previous articles

Currently reading -

EUROPE: Irish Dairy Board secures Tesco butter contract

There are currently no comments on this article

Be the first to comment on this article

Related research

Tesco China: Consumer Profile

The effects of the global recession and the following recovery have led consumers to closely examine their choice of retailer and products purchased. While the effects have varied country by country, no retailer has been left totally untouched and th...

Tesco in Turkey: Local Profile

This is a detailed report covering Tesco’s store formats, private labels, history, key employees, and key financial and operational metrics in Turkey....

Tesco in the Czech Republic: Local Profile

This is a detailed report covering Tesco’s store formats, private labels, history, key employees, and key financial and operational metrics in the Czech Republic...

Related articles

On the money: Asda: We offer clear prices, not gimmicks

Asda CEO Andy Clarke today (16 May) hit out at the "gimmicky" and "unsustainable" promotions of its rivals and said the UK grocer's "clarity" on prices was paying off.

Interview: Amy's Kitchen sets out international mission

Amy's Kitchen, the US frozen-food, organic and free-from business, is a quarter of a century old this year but there is a passion - almost a sense of mission - one would normally associate with a start-up. Dean Best spoke to co-owner Amy Berliner and European commercial director Damien Threadgold about the company's plans.

Best bits: Ella's Kitchen is Hain's most promising UK buy

US manufacturer Hain Celestial has struck again across the pond. And its latest acquisition in the UK seems to be the one with most potential, writes Dean Best.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page