If there was just one brand name associated with Dublin, it would surely be "Bewley's". But the Campbell Bewley group is now developing far beyond its landmark cafes in the capital into one of the Republic's home-grown multinationals. Now with substantial business in the UK and the US and employing around 4,500 people, it is set to announce sales this year of around £170 million (€216 million) and pre-tax profits approaching £4.5 million.
The challenge of recently-appointed chief executive Mr Dan Cronin is to build and develop the Bewley's brands, as well as expanding the profitable Campbell Catering business.
Mr Cronin succeeded Mr Michael Cummins as chief executive in May. He was previously managing director of the services division and the UK operation, having climbed to that post from managing director of Campbell Catering.
He takes up the reins as the group moves into a new corporate headquarters and manufacturing plant, located on the road joining the Malahide Road to the M50, north of Dublin. An impressive new 100,000 sq ft facility, built at a cost of £10 million, it contains all of the manufacturing operations for the group's coffee, tea and bakery products.
The shiny new headquarters, with state-of-the-art manufacturing technology, reflects the group's desire to expand. Yet Bewley's also retains its Dublin roots.
The cafes in the city centre remain a key shopfront for the brand - Westmoreland Street is next for redevelopment, following the upgrading of the outlet in Grafton Street. While aiming for international markets, vans also line up at the new HQ to provide lunches for schools in the Dublin Corporation area. Extra staff is needed on Fridays - and truancy levels fall - as the chocolate muffins provided on that day are somehow more popular than the sandwiches on offer from Monday to Thursday.
Mr Cronin's goal is to develop the Bewley's brands internationally, while also building on the group's existing strong position at home. Just over half the group's turnover is in the domestic market, though this proportion is set to decline. The Bewley's consumer brand is still primarily an Irish one.
The redevelopment of the city centre stores, says Mr Cronin, reflects the "core brand values" or tradition, value for money, the "Dublin" factor and the intention that a visit to Bewley's should be a treat.
These values, Mr Cronin believes, can be built on to increase Bewley's sales and to diversify at home and internationally. Already strides have been made. Drink a cup of coffee in an Irish hotel and there is a 70 per cent chance it is Bewley's. The group now also produces chocolate, sells special hampers and is promoting the Bewley's Hotels concept to franchise operators. The retail sector also promises future growth. In the £55 million tea market, for example, Bewley's 10 per cent share of the tea bag market leaves scope for growth. There is also room to increase sales of specialist coffee products, such as premium estate and fair traded coffees, and to grab a bigger share of the £28 million instant coffee market.
Bewley's is also working on a new range of iced beverages, is developing its Caffe La Scala espresso-based range and believes that its craft bakery products can also sell well in a wider retail market.
A new website available this week aims to develop e-commerce opportunities.
However, it is overseas where Mr Cronin sees the most scope for increasing sales. Bewley's Tea & Coffee UK had turnover of just £4 million and supplies 41 franchisees, but the acquisition last year of Arabica Coffee is a significant step forward, adding further sales of £5 million in machines and ingredients. es and restaurants.
" In Ireland people got to know the product through the cafes and now buy it in the supermarket," he points out, saying that the same formula will be applied in the UK.
Mr Cronin believes sales in the US, which accounted for 12 per cent of revenue last year, have the most scope for growth. "In five to 10 years' time the US market could be bigger than Ireland," he believes, with the Bewley's products having "all the attributes to become global brands".
The group's first toe into the US market was its acquisition of the Rebecca cafe chain in Boston in 1997, which offers what the locals call "upscale food", either to those calling in or delivered directly to the Boston business district from 11 outlets. It also runs a sizeable contract catering business.
While nothing is near being finalised, Mr Cronin indicates that further acquisitions in the US are firmly on the group's list of priorities. They are likely to be either restaurant chains or contract catering operations.
The other major part of the Campbell Bewley operation is, of course, the "Campbell" bit. Campbell Catering employs around 2,200 people and accounts for some £60 million in annual turnover.
The company is now the clear market leader in the Republic with a share of around 44 per cent and 220 contracts; it is also expanding in Britain.
Like most companies of its size, Campbell Bewley faces periodic speculation about a stock market flotation. "Not now," is Mr Cronin's answer, although he is careful not to dismiss such a move. Some 18 per cent of the company is held by a British venture capital fund, Granville, a further 20 per cent by staff and the remaining 60 per cent by the Campbell family; Mr Patrick Campbell, who ran Bewley's for many years remains as group chairman.
With expansion on the agenda, fresh funding will be required "shortly . . . ish" in Mr Cronin's words, and the group will examine all the options ranging from a private placement with institutions, selling a further stake to a venture capital fund or floating on the market. A market flotation does not appear an immediate option, but it must be a serious option in the medium term if Mr Cronin's ambitions for growth are realised.
