MASTERCLASS CASE STUDY:COUVERTURE DESSERTS was established in 1998 by Celine Hayes and sisters Margaret and Geraldine Lynch who, between them, had skills in sales and marketing, bakery management and banking. Couverture produces frozen and chilled desserts including gateaux, tortes, crumbles and fruit pies.
The company supplies both the food service industry and retail trade all over Ireland. It employs 19 people and had a turnover of €2 million in 2008.
"We have always taken a very planned approach to our business and I think that has stood to us," says Margaret Lynch. "By having good systems and working to a plan with specific targets, it's clear what you're aiming for and you are more in control. The recession has had an impact on our immediate operations, but our long-term objectives remain the same. It may just take a longer timeframe to achieve them."
Couverture began adjusting to the changing market last September. It did a line-by-line analysis of costs and overheads and looked at how costs could be trimmed. At the same time, it put a big effort into sales and began encouraging its retail customers to do special promotions.
The company also began spending more time with its food service clients looking at how their markets had changed and how its products could best fit into the new order. "In particular we've done a lot of work with our chef and catering customers whose requirements have changed," Lynch says.
Couverture had grown steadily since 1998 and showed very strong growth from 2006-2007, with a 30 per cent jump in sales.
The company had developed a very aggressive growth plan and had brought a mentor on board to help identify what elements within the business might prevent it from achieving its objectives.
"This was a very productive exercise, although we had to scale back our expectations as conditions began to change," says Lynch. "The beginning of the year is always quiet for us, but March and April have been good and we see this as very positive. We're hoping to be able to maintain sales at last year's level, in spite of the downturn."
Couverture has always tried to develop partnerships with its customers and Lynch says this co-operation is paying off now.
"I think people are actually very realistic about the situation and are pulling together to get through it. There is 'give' on all sides to try to keep everyone on track," she says. "In our own case, this means being very flexible about meeting our customers' changing needs. Within our own operation we're focused on building sales of the products we make the most efficiently, from both a production and cost point of view.
"We are still very much at the premium end of our sector, but we recognise that, more than ever, customers are now looking for value as well."
This month, Margaret Lynch of Couverture Desserts explains how strategic planning and a willingness to offer customers flexibility has allowed the firm to trade through the downturn and remain in the premium sector
