milk Archives - Ireland's Forecourt & Convenience Retailer

Back to school budgets hit by 11.9% increase in price of lunchbox staples: Kantar

Linda Stewart — Tue, 20 Sep 2022 10:57:03 +0000

Take home grocery sales in Ireland increased by 1.8% in the 12 weeks to 4 September, thanks mostly to a 7.8% increase in average prices, as grocery price inflation hit 11%.

In the four weeks to 4 September, the price of back-to-school essentials (bread, ham, cheese, yoghurt, cereal and milk) rose by 19.5%, making a basket of these staples €2 more expensive.

The most basic items saw some of the biggest jumps with bread up 20%, ham up 12%, milk up 26%, yoghurt up 17%. Collectively, shoppers spent an additional €17m on these products compared to the same period last year, driven entirely by price as volumes were down 6%.

Emer Healy, Kantar senior analyst, comments: “Grocery price inflation is at its highest level since Kantar began tracking grocery price inflation in May 2008. As food and drink prices continue to climb alongside increasing pressure on other household bills, the impact is unavoidable for many Irish consumers.

“The average annual grocery bill could go from €6,985 to €7,753 – that’s an additional €768 a year that Irish consumers will have to spend if they do not make any changes to what they currently buy or where they shop”

As consumers search for better value, the biggest winners are retailer own-label lines. In the latest 12 weeks, sales of own-label products are up 5.8%, representing an additional €72m year-on-year. Value own-label ranges, the very cheapest products in the range, saw even stronger growth up 21.4% compared to the same period last year as shoppers spent an additional €10.2m.

The cost-of-living crunch has also encouraged an influx of new shoppers to go online. In the last four weeks alone, volumes were up as shoppers increased their packs per trip by 2.9% contributing an additional €6.8m to the overall market performance. More than one-in-10 Irish shoppers (12%) now purchase their groceries online.

Sales value rises at grocery giants

Appealing to the need for better deals has helped all major retailers to grow in the last 12 weeks. Market leader Dunnes (22.3% value share) saw growth of 7.2% year-on-year, helped by an influx of new shoppers (up 4.7%), and an increase in shopping trips (up 1.7%). Dunnes traditionally performs well at back-to-school times and experienced strong own-label growth of 13% year-on-year.

Tesco sits at 21.9% share, with sales up 3.9% compared to last year as shoppers return to store more often (6.6%), while SuperValu (21.4% share) continues to attract more trips than any other retailer, with an average of 21.5 trips made in the last 12 weeks. Lidl holds 13.2% share growing 3.5% year-on-year, while rival low-cost retailer Aldi sits at 12.7% share an increase of 1.4% as a result of existing shoppers returning to store more often.

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Fears for 140 jobs at Arrabawn Dairies in Galway

Linda Stewart — Fri, 26 Aug 2022 09:25:16 +0000

Uncertainty remains around the future of 140 jobs at the Arrabawn Dairies in Galway following reports that the plant has been sold.

It is understood that a “substantial” offer was made to purchase the business and a vote was taken by the board of management at the company’s headquarters in Nenagh in Co Tipperary.

News of the reported sale of Arrabawn’s liquid milk plant has been described as a massive blow to the workforce, their families and local suppliers.

Arrabawn’s liquid milk plant opened in the village of Kilconnell in the 1960s and has undergone extensive modernisation in recent years.

Earlier this week a spokesperson for the company said Arrabawn was exploring best options for its operations due to the “challenging” nature of the liquid milk market.

However the plant was described as a “best-in-class” facility.

Local TD Denis Naughten said the news would come as a huge blow to the staff employed both directly and indirectly, their families, particularly at a time of such economic uncertainty, as well as a vast part of the rural economy of East Galway.

He said all options need to be explored to try to retain processing capacity and jobs in the village of Kilconnell.

A meeting is now being sought with the Minister for Agriculture Charlie McConalogue.

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Work starts on Glanbia’s cheese-making facility in Kilkenny

Linda Stewart — Thu, 23 Jun 2022 09:42:05 +0000

Work has now started on a cheese-making plant which will process up to 450 million litres of milk from local dairy farmers when it starts production.

The continental cheese facility is being built at Belview in south Kilkenny under a joint venture between Glanbia Co-op and Dutch dairy company Royal A-Ware, and will create 400 jobs during construction and 80 jobs when complete.

It is expected that the plant will start producing cheese for the European market in 2024.

Glanbia says the new plant will be “one of the most efficient and sustainable” cheese-production units in Europe.

It will produce over 50,000 tonnes of cheese every year, including Edam, Gouda and Emmental, using about 450 million litres of milk from Glanbia suppliers every year.

“Glanbia Co-op currently sends some milk for processing by third parties during the peak milk supply months; the new facility will allow this milk to be brought in-house for processing in one of the most sustainable cheese plants in Europe. This will consolidate milk processing and reduce transport movements,” the company said .

Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar and Minister for Agriculture, Food and the Marine Charlie McConalogue attended the sod-turning ceremony at the site.

“It’s a huge boost for the south-east which has experienced significant and long overdue investment and jobs growth in the past year or two,” Mr Varadkar said.

“The UK’s decision to leave the European Union was a seismic event for Ireland’s agri-food sector and the over 163,000 people it employs here.”

Glanbia Co-op CEO Jim Bergin said the factory will help the company diversify their product offering, post-Brexit.

“This facility is essential in the context of a sustainable future for our Co-op and our sector as set out in our Living Proof sustainability strategy.”

Royal A-ware CEO Jan Anker said production of the cheese in Belview will allow them to bring “high-quality cheese, produced through a local supply chain, into the marketplace”.

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Lakeland Dairies CEO Michael Hanley to retire at end of year

Linda Stewart — Wed, 11 May 2022 08:49:32 +0000

The Chief Executive of Lakeland Dairies, Michael Hanley, has announced his decision to retire in December this year.

He has held the position for 16 years but has worked with the co-operative for 36 years.

During his term as CEO, Mr Hanley led the transformation of Lakeland Dairies to become the second largest dairy processing co-operative on the island of Ireland, with annual revenues of €1.3 billion.

As Member Relations manager he spearheaded the original 1990 campaign that saw the merger of Killeshandra and Lough Egish Co-operatives to form Lakeland Dairies.

The co-operative has acquired and integrated various businesses since including the biggest ever dairy co-op merger in Ireland in 2019 – the combination of Lakeland Dairies and Lacpatrick Dairies.

Over the past decade, Lakeland has invested over €200 million in new facilities and technologies, increasing milk supplies and processing capacity to a record level of over 2 billion litres.

“Personally it’s the right time for me to make this decision, following on from the record annual financial results reported for 2021,” Mr Hanley said.

“The Lakeland business is in excellent shape to pursue further growth and development, with the financial strength, the necessary resources and a highly experienced leadership team in place to continue the great progress that has been achieved collectively by all of us to date.”

The group recently reported a 20% increase in revenues to a record level of €1.3bn for 2021. Operating profit of €28.2m increased by 8%.

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Glanbia Co-op backs deal to take control of Glanbia Ireland

Linda Stewart — Mon, 20 Dec 2021 09:13:50 +0000

Shareholders at Glanbia Co-op are backing a deal that will see it take full ownership of Ireland’s largest dairy company, Glanbia Ireland.

The decision, backed by 80% of the 4,000 shareholders who voted, was made at a virtual special general meeting of the Co-op.

The vote means the Co-op will pay €307m to buy the 40% of Glanbia Ireland that is owned by Glanbia plc, giving it complete ownership of the joint venture. It will be funded through existing cash and debt facilities.

“I’m delighted that shareholders have voted firmly in favour of this exciting development for our farmers,” Glanbia Co-op chairman John Murphy said.

“It is an historic milestone in the evolution of our Co-op, which has delivered for our farmer members for over a century.

“We firmly believe that 100% ownership of the world-class processing assets closest to our farmers’ interests is the right model for the future.”

Last year Glanbia Ireland reported revenues of €1.9 billion and a profit after tax of €61 million.

Shareholders of the Co-op have approved plans to spin-out 12 million Glanbia plc shares, currently worth around €149m, to all members of the society next year.

Mr Murphy said this would result in some of the value of the Co-op’s stake in the plc being returned to members.

The creation of an investment fund, a Member Distribution Reserve and changes to the governance of the Co-op were also approved by those who voted.

Changes to the governance of the Co-op were also backed by the shareholders. The chair will now be elected every two years, while it will also be possible to add executive and non-executive directors to the board.

“The Board’s motivation for making these proposals was very simple – we want to pay the best possible price for milk and grain to farmers,” Mr Murphy said.

“These proposals allow us greater flexibility to support our farmers into the future.”

“Most importantly, our Co-op will have 100% ownership of our processing facilities and will be run to pure Co-op principles. It will maintain strong financial discipline and governance, and be led by an experienced leadership team and Board.”

The plan is still subject to approval of shareholders of Glanbia plc with an extraordinary general meeting expected to take place early next year.

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