MAXIMISING THE
ORGANIC
OPPORTUNITY
Lir Chocolates
Maximising The Organic
Opportunity
History And Background
•
Lir Chocolates was founded in 1987 by Connie Doody and Senator Mary
White with the objective of serving the premium chocolate market in
Ireland. Its core stated value was to provide Irish consumers with a top
quality luxury eating experience.
•
In 2002 the company moved to a new 30,000 sq. ft plant in Navan, Co
Meath.
•
In 2005 Lir secures the rights to manufacture Baileys Branded Chocolate
Products for UK and Ireland. This range has enjoyed phenomenal success
and in 2007 Lir’s license was extended to cover Benelux, Scandinavian and
Russian markets.
•
In 2006 Lir invested considerate NPD resource in delivering an organic
chocolate selection. This selection was the first 100% organic product
retailed in the UK market.
Maximising The Organic
Opportunity
History And Background continued.
•
¨
Exports account for over 80% of the company’s business and new exports
to the following territories
v
UK
v
Russia
v
Holland
v
Denmark
v
Norway
v
Iceland
v
Belgium
v
Luxemburg
In late 2007 – Lir Chocolates took on a strategic trade investor through the medium
of Kinnerton Confectionary and this move has left the company well placed for future
capital and marketing investment projects.
Maximising The Organic
Opportunity
¨
RATIONALE FOR ENTERING THE ORGANIC SECTOR:
§
Emerging Market
§
Satisfying Consumer Trends
§
Customer approach
§
Gaining Competitive Edge
Maximising The Organic
Opportunity
¨
CHALLENGES TO ENTERING THE MARKET:
§
Sourcing of Ingredients:
§
Organic Ingredient Characteristics
§
Organic Accreditation in Ireland & The UK
§
Supplier Standards
§
Tasting Trials
§
Collection Balance
§
Factory segregation and process flow
§
Minimum Production Runs
§
Process Duration
Maximising The Organic
Opportunity
q
CUSTOMERS
§
CONSUMER CHARACTERISTICS
Ø
Ø
Ø
§
Perceived healthiness
Premium eating experience
Some resistance to processed foods – primary foods enjoying greater success
RETAILERS
Ø
Niche but developing market
Ø
Increased cash profit as product range commands a premium
Ø
Wariness of wastage levers
Maximising The Organic
Opportunity
q
OUR CUSTOMERS
§
Marks & Spencer
§
Co-op
§
Tesco UK & Ireland
§
Sainsburys
§
ASDA
§
MSC
§
Londis / ADM
§
Superquinn
§
Morrisons
Maximising The Organic
Opportunity
q
THREAT TO GROWTH OF ORGANIC SECTOR
§
Increasing Raw Material Prices
§
Availability of raw materials
§
Rising fuel costs
§
Maintenance of standards
§
Wastage Levels
Maximising The Organic
Opportunity
q
Market Statistics
§
Households with children aged 15 years or under are greatest supporters
§
Food sales trending £2 billion per annum
§
Accounts for 1% of total food sales
§
Areas of greatest penetration
Ø
Fresh Produce (40% of total sales)
Ø
Fresh Meat & Poultry
Ø
Coffees & Teas