Belton Cheese has been on something of a roll, expanding its business into new international markets with fresh distribution deals in countries as far afield as the US and Japan. The group announced yesterday (30 April) it is further growing its overseas presence through an agreement to expand into Russia’s high growth dairy market. Katy Askew caught up with Belton sales manager Phil Jones to find out more.
Family-owned UK dairy group Belton Cheese is a small company with some big global aspirations. Belton manufactures branded and own-label products it supplies into UK retailers including Asda, Morrisons and The Co-operative Group. The firm, which has been making farmhouse cheeses since the 1800s, has now turned its attention to export markets to drive growth.
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Speaking to just-food this afternoon (1 May), Belton sales manager Phil Jones says selling Belton’s traditional English cheeses to overseas customers is now a key part of the group’s business plan, particularly given the crowded nature of the UK dairy scene.
“The last two or three years have really seen us focusing on international opportunities and realising we want to do a bit more with export,” Jones says. “Exports are another string to our bow. Obviously, the UK is a fairly small and competitive island, where a lot of different people are trying to do business, whilst there is a global opportunity. There is more we can do and more we would like to do.”
Since the company has begun working to ramp up its export presence, Belton has secured customers in a variety of markets including the US, Australia, South Africa and Japan. And yesterday the group announced it has secured listings with a Russian distributor that will see Belton’s Shropshire Blue appear on shelves throughout the country.
“We have had a certain amount of export success already,” Jones says. “The potential is great and initial orders look very positive.”
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By GlobalDataOver the past year, Jones estimates the company has grown its overseas sales by around 50%, increasing the proportion of revenues generated outside the UK to 15% of total sales.
While Belton has been able to expand its presence overseas, Jones emphasises this growth is no mean feat. The company has had to grapple with an array of challenges as it pursues entry into international markets. These range from language barriers and cultural differences – factors that should not be underestimated when looking to export into markets like Japan – to regulatory hurdles and red tape, he explains. Meanwhile, the potential of other markets – such as Canada – is limited by import restrictions.
“For Russia, we are one of the few approved sites in the UK, but there are still many standards and technical hurdles that we have had to overcome. Business is starting to build there, but it takes time and focus and you have to be patient,” he adds.
Barriers to entry vary by market and each country must be assessed on an individual basis to determine the most appropriate route to grow. But, in general, Belton has focused its international strategy on developing relationships with local importers and distributors. “We are a great believer in building relationships. That is how we have expanded,” Jones emphasises.
Jones adds Belton has been able to ride a wave of growing international interest in and awareness of traditional English cheeses. “There is a genuine interest in English cheese,” Jones insists.
Indeed, the group’s expansion into Russia was triggered by local interest – with Russian companies contacting Belton via its website to secure supply of UK cheese.
Looking to where Belton sees the greatest export potential, Jones identifies a number of markets where it is already present – Russia, the US and Japan – as well as some markets that the firm is yet to enter, namely China and India.
“Our focus is to try and maximise the potential of markets where we already have a presence,” Jones says. However, he adds: “We are open to entering new markets as opportunities present themselves. We always have our ear to the ground and will take opportunities as they arise.”
While international expansion presents a considerable opportunity to drive the top line, it can also be a costly affair. Nevertheless, Jones says Belton aims to generate speedy returns from any market that it enters. “We would always hope that it would contribute to the business, even at this early stage. But we do model to increase returns over a period that will give us a good payback.”
While Belton is proud of its distinctively English traditional and speciality cheeses, the company also places product development and recipe updates high on the agenda. “Constant NPD is going on to improve what we do,” Jones reveals.
He claims a focus on driving innovation has also served Belton well in its domestic market. “We are doing very well in the UK. It’s a difficult market but we are doing very well.”
In particular, Belton is focused on driving the growth of its Red Fox brand at home and overseas.
The Red Fox cheese is based on a Red Leicester recipe, but has a “unique flavour profile” that is somewhat sweeter than a typical Red Leicester. Overseas, Belton aims to increase distribution – having recently secured listings for the brand in the US – while in the UK the group hopes to encourage uptake through sampling. “We know that once consumers have sampled they will repeat purchase,” Jones insists.
So, with plans to expand at home and abroad, Belton appears to be a company on the up. The group’s success hinges on its ability to deliver distinct, quality English cheeses as it looks to build momentum behind its brands. This focus is something that Belton is likely to continue to leverage as it progresses its growth plans.
