Required Report - public distribution

**Date:** 3/9/2007

**GAIN Report Number:** EI7001

EI7001

**Ireland**

**HRI Food Service Sector**

**HRI Food Service Sector**

**2007**

**Approved by:**

![](media/image1.wmf)Besa Kotati

U.S. Embassy

**Prepared by:**

Michael Hanley

**Report Highlights:**

The Irish food service industry is competitive and highly fragmented.
Current estimates are that the total value of this industry is about \$6
billion per year. For the last twelve years, the Irish economy has been
booming with a steady growth rate of 7% per year which, to many
observers, is the best and highest in the European Union. For U.S.
agricultural exports to Ireland, the best prospects in the food service
industry are in products such as snack foods (sauces, nuts, chips,
dips), other consumer ready products and beverages such as wines.
Because the industry is very fragmented, there are opportunities for
traders offering speciality products for niche sectors such as catering
and institutional food services.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Dublin \[EI1\]

\[EI\]

Table of Contents

[**SECTION I -- MARKET SUMMARY 3**](#section-i-market-summary)

[Advantages & Challenges to U.S. Products in the HRI Sector
3](#advantages-challenges-to-u.s.-products-in-the-hri-sector)

[Market Structure 4](#market-structure)

[SECTION II -- ROAD MAP FOR MARKET ENTRY
4](#section-ii-road-map-for-market-entry)

[SECTION III -- COMPANY PROFILES 4](#section-iii-company-profiles)

[SECTION IV -- BEST PRODUCT PROSPECTS
7](#section-iv-best-product-prospects)

[SECTION V -- POST CONTACT AND FURTHER INFORMATION
7](#section-v-post-contact-and-further-information)

# SECTION I -- MARKET SUMMARY

-   The Irish foodservice market has gained in importance in recent
    years with good economic conditions and full employment increasing
    demand for prepared meals and refreshments outside of the home.

-   In 2005 the market is estimated to have grown by about six percent
    to an estimated \$5.5 billion.

-   While this includes drinks and beverages, expenditure on food is
    increasing at a faster pace.

-   Recent research has shown that 88 percent of the population eats out
    regularly.

-   There has been a noticeable increase in the number of coffee shops
    and deli-type food outlets.

-   While the distribution system to the foodservice sector is highly
    fragmented, there are a number of key distributors and a lot of
    smaller local suppliers.

-   While the sector sources a significant proportion of its ingredients
    from Irish and nearby European suppliers, some items need to be
    sourced from non-EU destinations.

-   Some opportunities exist for U.S. exports especially for wines and
    beers, cooking sauces, salsas and dips

# 

## Advantages & Challenges to U.S. Products in the HRI Sector

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Brand name recognition -- there are Competition from many other ethnic
  a few American chain restaurants in restaurants, eg. Indian, Chinese,
  Ireland wanting to source American  Italian, which are popular in
  food products.                      Ireland.

  There are a relatively small number Price competition is fierce and
  of specialist foodservice importers often depends on the Euro -- Dollar
  who may be interested in importing  exchange rate.
  from the U.S.                       

  The U.S. has a good brand image in  Strict EU import regulations and
  Ireland                             labeling/ingredient requirements.

  The country is English-speaking and Import duties payable on U.S.
  is therefore a natural gateway into product. No duties are payable on
  the rest of Europe for U.S.         product sourced in the EU.
  exporters.                          

  The U.S. is a popular destination   American food is usually associated
  for Irish tourists and familiarity  with fast food.
  with U.S. products is widespread.   
  ----------------------------------- -----------------------------------

## Market Structure

As in many other economically developed countries there are two distinct
segments in the foodservice sector: private (for profit) and public.
Private (for profit) includes restaurants, fast-food restaurants,
sandwich/coffee bars, pubs and hotels. Public includes educational
establishments, staff catering, health care (including hospitals) and
governmental (such as prisons).

# SECTION II -- ROAD MAP FOR MARKET ENTRY

Irish importers and distributors regularly travel to international food
shows and exhibitions in search of new products and indeed new
suppliers. There is also a biennial catering exhibition (Catex) held in
Dublin (next exhibition 2009) where catering and foodservice suppliers
exhibit mainly to buyers in the HRI sector.

An exporter, interested in supplying the Irish market, must be able to
show the ability to deliver a consistent product, on schedule, at a
competitive price. Many importers and distributors will also demand a
trace-back ability from manufacturers and suppliers, as food safety is
an increasingly important topic.

The following diagram shows the most common routes to the market. While
the route to market varies for each operator, many foodservice operators
believe in offering fresh products to their customers. As a result a
high percentage of foodservice purchase routes are on the left-hand side
of the schematic below. Many Irish foodservice operators, as well as
retailers, demand tracability of product to ensure quality. By dealing
directly the manufacturer and/or producer, or with just one middleman,
they are somewhat assured of quality and they have recourse in case of
problems. The most common way to the market for non-Irish products is
through an importer who generally has acquired knowledge of the market;
has already a developed distribution system and an existing client list.

+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |   ------  |     |          |      |      |      |      |
|            |           |     |          |      |      |      |      |
|            |   ------  |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+
|            |           |     |          |      |      |      |      |
+------------+-----------+-----+----------+------+------+------+------+

Please note that due to strict EU rules on the imports of meat and meat
products, exporters of such items should be fully compliant with the
relevant legislation prior to initiating business contact.

# SECTION III -- COMPANY PROFILES

The following companies have been identified as significant importers
and distributors in the food service industry. As noted above the sector
is very fragmented and smaller importers with exclusive import
agreements may in turn supply some of these distributors. This is only a
sample of a vast list of importers and distributors and please note that
a listing in this report does not constitute an endorsement of the firm
listed.

**Pallas Foods**: In operation since the early 1980's, the business is
one of the leading food service distributors on the island of Ireland
(Northern and Republic of). Palls Foods claim a customer base of 4,500
and supplies fresh, frozen and ambient products.

Contact details: Pallas Foods Ltd.\
Newcastle West\
Limerick\
Ireland

> Tel: +353 69 20200\
> Fax: +353 69 20201\
> Email: <info@pallasfoods.com>

**La Rousse Foods**: In business since 1990, and again supplying to the
island of Ireland.

Contact details: La Rousse Foods

> 31 Park West,
>
> Nangor Road,
>
> Dublin 12
>
> Tel: +353 1 6234111
>
> Fax: +353 1 6234042
>
> Email: <marc@laroussefoods.ie>

**Stafford Lynch**: The catering division was formed in 1991 as part of
a strategic growth plan for the Stafford Lynch group, in operation since
1974. Supplies the island of Ireland.

Contact details: Stafford Lynch\
Willsborough Industrial Estate\
Clonshaugh\
Dublin 17\
Ireland.\
\
**Tel:** +353 1 802 3100\
**Fax:** +353 1 867 0795\
**Email:** [info@staffordlynch.ie](../info@staffordlynch.ie)

**Allegro**: A distributor of many leading food brands included imported
brands. A supplier to the catering trade.

Contact details: Allegro Ltd

Jamestown House

> Jamestown Business Park
>
> Finglas
>
> Dublin 11
>
> Tel: +353 1 858 0600
>
> Fax: +353 1 858 0659
>
> Email: [c.mccaughey@allegro.ie](../c.mccaughey@allegro.ie)

**BR Marketing**: An importer of many worldwide brands. A supplier to
the catering trade.

Contact details: BR Marketing Ltd.

> 40 Rosemount Park Drive
>
> Rosemount Business Park
>
> Dublin 11
>
> Tel: +353 1 885 0800
>
> Fax: +353 1 885 0899
>
> Email: [info@brmark.ie](../info@brmark.ie)

**Musgrave Foodservices**: Part of the much larger Musgraves food group
that is involved in all sections of the Irish food trade -- retail and
catering.

Contact details: Musgrave Foodservices

Margarets Road\
Ballymun\
Dublin 11\
Tel: +353 1 883 5333

> Fax: +353 1 816 5601\
> Email: <info@musgravefoodservices.ie>

**White Hat**: A new catering division set up by Stonehouse that was
formed in 2000 to supply independent traders.

Contact Details: Stonehouse\
12 Dundrum Business Park\
Dundrum\
Dublin 14\
Tel: +353 1 296 6000

> Fax: +353 1 296 6002
>
> Email: <info@stonehouse.ie>

In addition to the above distributors who are all involved in the food
sector, a myriad of importers involved in the beverage sector exist. A
number are listed below. A listing here does not constitute an
endorsement.

### Mitchell & Son Wine Merchants Ltd.

Contact Details: 54 Glasthule Road

> Sandycove
>
> Co. Dublin
>
> Tel: +353 1 230 2301
>
> Fax: +353 1 2302305
>
> Email: [glasthule@mitchellandson.com](mailto:info@stonehouse.ie)

### Woodford Bourne

Contact Details: 79 Broomhill Road

> Tallaght
>
> Co. Dublin
>
> Tel: +353 1 404 7300
>
> Fax: +353 1 404 7311
>
> Email: <info@woodfordbourne.com>

### Galvins Wine & Spirits

Contact Details: Bessboro Road

> Blackrock
>
> Cork
>
> Tel: +353 21 431 6098
>
> Fax: +353 21 431 4209
>
> Email: [sales@galvinwines.com](mailto:info@woodfordbourne.com)

# 

# SECTION IV -- BEST PRODUCT PROSPECTS

U.S. products which could do well in the Irish foodservice industry are:
snack foods, fresh and dried fruit, nuts, cooking sauces, salad
dressings, dips and salsas, wine and to a lesser extent, beer.

+----------+--------+-------+-------+------+------------+-----------+
| *        | **T    | **    | **Av  | **U. | **Key      | **Market  |
| *Product | otal** | Irish | erage | S.** | C          | Attra     |
| Ca       |        | Impo  | A     |      | onstraints | ctiveness |
| tegory** | *      | rts** | nnual | **Im | to Market  | for US    |
|          | *Irish |       | U.S.  | port | Dev        | ex        |
|          | Imp    | *     | I     | Tari | elopment** | porters** |
|          | orts** | *From | mport | ff** |            |           |
|          |        | U     | Gro   |      |            |           |
|          | **     | .S.** | wth** | #    |            |           |
|          | 2005** |       |       | Rate |            |           |
|          |        | **2   | **    |      |            |           |
|          | **(\$  | 005** | (last |      |            |           |
|          | mill   |       | 3     |      |            |           |
|          | ion)** | **(\$ | y     |      |            |           |
|          |        | milli | rs)** |      |            |           |
|          |        | on)** |       |      |            |           |
+----------+--------+-------+-------+------+------------+-----------+
| P        | 38.7   | 0.6   | 3%    | 7    | C          | U.S. nut  |
| reserved |        |       |       | -27% | ompetition | butters   |
| fruit &  |        |       |       |      | from EU +  | perceived |
| nuts     |        |       |       |      | Thailand & | as high   |
|          |        |       |       |      | South      | quality.  |
| HS: 2008 |        |       |       |      | Africa     |           |
+----------+--------+-------+-------+------+------------+-----------+
| Fruit &  | 116.0  | 0.4   | 20%   | 16   | C          | Juices    |
| V        |        |       |       | -23% | ompetition | now more  |
| egetable |        |       |       |      | from EU    | popular   |
| Juice    |        |       |       |      | and Brazil | and       |
|          |        |       |       |      |            | perceived |
| HS: 2009 |        |       |       |      |            | healthier |
|          |        |       |       |      |            | than      |
|          |        |       |       |      |            | c         |
|          |        |       |       |      |            | arbonated |
|          |        |       |       |      |            | drinks    |
+----------+--------+-------+-------+------+------------+-----------+
| Sauces   | 80.9   | 0.5   | 3%    | 0    | C          | Gap for   |
|          |        |       |       | -10% | ompetition | Tex Mex   |
| HS 2103  |        |       |       |      | from EU;   | products  |
|          |        |       |       |      | Strong     |           |
|          |        |       |       |      | brands     |           |
+----------+--------+-------+-------+------+------------+-----------+
| Wine     | 287.8  | 17.6  | 5%    | 18   | Major      | U.S.      |
|          |        |       |       | -25% | c          | wines     |
| HS: 2204 |        |       |       |      | ompetition | have a    |
|          |        |       |       |      | from New   | 12%       |
|          |        |       |       |      | World      | volume    |
|          |        |       |       |      | wines      | market    |
|          |        |       |       |      |            | share     |
+----------+--------+-------+-------+------+------------+-----------+

# SECTION V -- POST CONTACT AND FURTHER INFORMATION

If you have any questions or comments regarding this report or need any
other assistance exporting to Ireland, please contact the USDA office in
Dublin at the following address:

United States Department of Agriculture

Embassy of the United States of America

42 Elgin Road

Ballsbridge

Dublin 4

Tel: +353 1 630 6254

Fax: +353 1 668 7423

E-Mail: agdublin@usda.gov

Website: www.fas.usda.gov