Pathways for Growth:
Our Brand Reputation
Aidan Cotter
UCD Michael Smurfit Graduate Business School
Growing the success of Irish food & horticulture
AIDAN COTTER
BORD BIA
Growing
the success of Irish food
horticulture
CHIEF
EXECUTIVE
28 &
JANUARY
2009
21st June 2012
Great Nations
Write Their Autobiography in Three Manuscripts
– The Book of Their Deeds, The Book of Their Words,
and the Book of Their Art.
John Ruskin
Growing the success of Irish food & horticulture
………need to show what Irish food & drink stands for…………
Growing the success of Irish food & horticulture
Commodity prices, a century in decline……….
FAO
Food Price Index
2002-2012
Source: McKinsey Global Institute
Growing the success of Irish food & horticulture
India and China Make Waves in the Global Middle Class
Shares of Global Middle Class Consumption, 2000-2050
100%
“3 billion consumers
will join the middle classes
over the next 20 years”
90%
80%
Others
70%
60%
Other
Asia
United States
50%
40%
30%
20%
India
EU
Japan
changing lifestyles,
shifting dietary habits”
10%
0%2000
2005
2010
2015
2020
2025
Source: OECD Working Paper
Growing the success of Irish food & horticulture
2030
2035
China
2040
2 045
2050
Climate
Change
Supply
Challenges
“…most significant factor
causing volatility is
unpredictable
weather conditions”.
FAO/OECD Agricultural Outlook, 2011-2020
“By 2025, two-thirds of the world’s population could
be living under water stress conditions”.
UN
Food for Fuel:
40% of US corn
used for ethanol”
Agriculture uses 70% of the world’s freshwater
Growing the success of Irish food & horticulture
we are
the planet
Images from WWF
Growing the success of Irish food & horticulture
Sustainable development meets the needs of the present
without compromising the ability of future generations
to meet their own needs.
United Nations Brundtland Commission, 1987
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Unilever: The Business Case
Consumers want it
Retailers want it
It fuels innovation
It helps develop new markets
It saves money
It inspires our people
Growing the success of Irish food & horticulture
Creating Shared Value at Nestlé
Creating
Shared Value
Nutrition, water,
rural development
Environmental
sustainability
Protect the future
Compliance
Laws, business principles, codes of conduct
Growing the success of Irish food & horticulture
January-February Harvard Business Review 2011
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
The Consumer Lifestyle Trends
“I like to pursue better value, to help
maintain my lifestyle and to get the most
from the money I have”
“I want to stay in control of my busy life
and make sure that I am at my best for
whatever the day presents”
“I want to get more enjoyment from the
simple things in life; to have experiences
that add more fun and meaning”
Growing the success of Irish food & horticulture
“I want a balanced approach to health
and wellness, to have greater control
through the choices I can make”
“I am looking for products and brands
that are real, authentic and honest,
because I know I can trust what's in
them and where they come from”
“I am mindful that I need to live more
responsibly; I want to make better
choices that make a difference without
having to compromise”
The Emerald Isle
Growing the success of Irish food & horticulture
EU Beef GHG Emissions
EU Dairy GHG Emissions
Source: EU JRC Evaluation of the livestock sector's contribution to the EU greenhouse gas emissions (GGELS)
Growing the success of Irish food & horticulture
Ireland has a very favourable water stress index
(% of territory under water stress)
50
45
40
46
35
Agriculture
uses 70%
of the world’s
freshwater
30
25
20
15
24
24
21
20
16
10
5
0
8
8
2
1
0
Source: Yale University
Growing the success of Irish food & horticulture
A World Leader in Sustainability
Every farm and food manufacturing business
signs up to the sustainability agenda…
Measuring what matters…
Accreditation, independent verification…
Performance based on science
innovation and best practice…
Growing the success of Irish food & horticulture
The infrastructure is in place…….
Quality Scheme
Farms Certified
Estimated production
Beef
32,000
75%
Lamb
8,500
45%
Pig
360
95%
Poultry
1,200
95%
Eggs
350
97%
Horticulture
300
50%
Growing the success of Irish food & horticulture
Sustainability Development Programme
PAS 2050
32,000
farms
Farming
Calculating
the Carbon Footprint
Nov
Feb
PAS 2050
Processing
PAS 2050
Packing
Transport
Retail
Growing the success of Irish food & horticulture
Measuring what matters……other
sustainability criteria
Growing the success of Irish food & horticulture
The Sustainability Charter
Decide
on target
areas
Annual
Progress
Report
Agree
baseline
period
Set
timelines
& targets
Growing the success of Irish food & horticulture
Issues to include in sustainability plan
At least one “stretch target”
Growing the success of Irish food & horticulture
At least one “stretch target”
Pilot Clients
Develop sustainability plans
Road-test programme
Demonstrate feasibility
Provide testimonials
Growing the success of Irish food & horticulture
Trade Research Interviews
Growing the success of Irish food & horticulture
May 2012
Registration of
Interest
Formal
Application
Growing the success of Irish food & horticulture
Membership
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Great Nations
Write Their Autobiography in Three Manuscripts
– The Book of Their Deeds, The Book of Their Words,
and the Book of Their Art.
John Ruskin
Growing the success of Irish food & horticulture
Pathways for Growth:
Our Brand Reputation
Aidan Cotter
UCD Michael Smurfit Graduate Business School
Growing the success of Irish food & horticulture
AIDAN COTTER
BORD BIA
Growing
the success of Irish food
horticulture
CHIEF
EXECUTIVE
28 &
JANUARY
2009
21st June 2012