It is widely accepted that in today’s global market, only a relatively small percentage of genuine Irish products are currently for sale in our supermarkets.
I’ve no reason to doubt that Irish manufactured goods contribute to the overall profits of the retailers on a like-for-like basis (in some cases probably more), so it follows that a healthier representation of Irish manufactured goods offers an opportunity for increased prosperity for the country as a whole. Larger retailers/ supermarkets, aka the Multiples, are often criticised for failing to support local businesses – and with some justification. However, suppliers need to be realistic in terms of offering retailers what they need.

“The retailers job is to sell what customers want – not to incubate small businesses.”

Understandably, the Multiples prefer to be offered solutions as opposed to problems. They don’t have the time, resources or even expertise to take a small “start-up” company, in whatever field, through the minefield of becoming a successful enterprise – nor should they be expected to; after all, their core activity is retailing. There are plenty of bodies that can and should brush-up on their ‘here & now’ knowledge of retailers’ expectations and support Irish SMEs and start-ups.

I recently came across the case of a group of individual growers (not manufacturers, but the same rules and challenges apply) that grew non- competing and complimentary products. They were astounded that certain retailers were not interested in talking to them seriously, as individuals. The solution was obvious. Firstly, they needed to come together and speak as one – their already fragmented position mitigated against their success. They then needed to create a consistent supply; despite the seasonality of their products, they needed to demonstrate to the retailers that the stores would have permanent, year-round access to product. Empty shelves help no-one and is among the quickest ways of getting delisted. Further, the growers needed to address their logistics and back-office expertise. For example, EDI (Electronic Data Interchange) is a prerequisite in order capture and record sales and is therefore a must in dealing with supermarkets.

It makes sense that if one should offer a supermarket a solution, to what the retailer could be convinced is a “gap” in the market, the retailer will take the supplier seriously. (And if they don’t recognise it as an opportunity, it’s down to the supplier to provide a compelling case as to why it is an opportunity – the “win-win-win” scenario. The third “win” being for the consumer…lest he/she be forgotten).

The retailer’s obligation to the local economy

Retailers have an obligation to support Irish growers, producers, processors and manufacturers. This does not mean supplying exclusively Irish products (Ireland has been proud of its position as part of the “Global Economy” and I don’t think that position should shift greatly as we would still like the opportunity to sell our unique products into other markets]. But it does mean supporting a higher percentage of Irish products than they do currently. They should do so willingly in acknowledgement of the privilege afforded to them of participating in that particular economy – take a minute to think that one through … is it not too much to ask that retailers respect the country they are operating? They would do so in Tokyo or Tehran, so why not in Dublin?

The retailer’s obligation is clear. But Irish food businesses must play their part in making it easier for the retailers to meet that obligation.