Many readers have been quick to criticise the role played by international multiples, but their value to the Irish economy is enormous
A couple of weeks ago, in an article about supermarket shopping, we suggested people could find good value in the German discounters and multinational multiples. We did not expect this to come as much of a revelation to readers but nor did we expect the flurry of emails and tweets from shops of various sizes suggesting we stop praising “foreign” retailers who take our money and give little in return.
Now, Pricewatch is a big supporter of local businesses and we are as happy as the next consumer column to wrap ourselves in the tricolour on occasion.But this notion that shopping in the big bad multinationals is akin to treason is wide of the mark and the numbers speak for themselves.
Last week, Tánaiste Eamon Gilmore had a very public lunch with Tesco in the Four Seasons Hotel in Dublin. The presence of such a high-profile minister at a corporate event, sponsored by a multinational retailer, might have caused eyebrows to be raised until the Tesco Ireland chief executive Tony Keohane started speaking. He laid out the facts. Tesco employs more than 15,000 people in Ireland and accounts for more than 20 per cent of all the Irish produce that is sold in the UK. Its worth to the Irish economy is around €2bn. For all its faults, it is important to the Irish economy.
Aldi’s numbers are more modest because of its relative size in Ireland. It has less than a quarter of the market share enjoyed by Tesco but the numbers are impressive nonetheless. It has 45 Irish suppliers that have won Blas na hÉireann National Irish Food Awards since 2009 and 29 of them have also won awards at the prestigious 2012 Great Taste Awards in London.
Aldi’s Nature’s Isle fresh poultry, beef, pork and lamb is sourced exclusively in the Republic on farms certified by the Bord Bia scheme; its flour comes from Odlums; its soft drinks and water come from Gleesons, while its yogurt is supplied by companies in Cork, Monaghan and Donegal. It has tripled its annual spend on Irish products over the past five years and does business with 125 Irish suppliers, producers and manufacturers. More than 50 per cent of all grocery sales at Aldi are now generated on products bought from Irish suppliers.
Highlighting the real worth of overseas retailers is not an attempt on our part to denigrate the value of indigenous stores such as SuperValu to this economy. Last year, the total purchases of Irish goods and services made by that chain’s growing network of independently-owned stores was more than €1.6bn.
It sold almost half-a-billion euro of Irish fresh food and says that all its meat is born, bred and reared in Ireland and is worth €183 million in retail sales – that’s 95,000 cattle, 90,000 lambs and 12.5m chickens, in case you’re interested. It also sold €156m worth of Irish fruit and vegetable and €161m worth of Irish dairy products.
While SuperValu’s topline numbers are broadly in line with its main rivals, it does have one thing that distinguishes it from the likes of Tesco – the ripple affect. Each year SuperValu stores collectively spend around €75m on products sourced from suppliers within their local community. Individual retailers buy products ranging from firewood to cupcakes. It also spends around €15.7m a year on direct service providers such as accountants. It says that for every €1 spent in one of its stores, 45 cent goes back into the local economy. Just 15 cent is returned to the local economy if spent in a multinational.
Dunnes Stores is also keen to trumpet its role as a major buyer of Irish food and to its credit it does sell hundreds of millions of euro worth of Irish food every year.
Lidl launched its own “Love Us We’re Irish” (ish) campaign earlier this year.
All the retailers are shouting loudly about their Irishness in the run up to Christmas because they know Irish people actually care. Research last year from Bord Bia showed that 85 per cent of Irish shoppers are either loyal or conditionally loyal towards Irish brands. That’s up 13 per cent since 2009. When asked, 73 per cent of Irish shoppers said being positive or very positive about buying Irish was essential to economic recovery .
But it’s not as easy to buy Irish as you might think. Last week, Love Irish Food, the umbrella group set up three years ago to promote Irish-manufactured food and protect jobs, reported a significant level of confusion in the minds of Irish consumers about what is and what is not Irish.
Its survey found that 80 per cent of Irish consumers thought Siúcra was produced in Ireland; 77 per cent were under the impression Lyons Tea was a taste of home; and 71 per cent said HB ice cream was as Irish as Rathfarnham. All three products are imported.
Pricewatch has written about this confusion before. And to the list we could add Donegal Catch salmon, which is sometimes sourced in Chile, or Jacobs Fruitfield Old Time Irish Marmalade, which is as Irish as Tony Cascarino.
Love Irish Food director Kieran Rumley said the survey showed more had to be done to tackle confusion over the origin of foods. He said imported brands with Irish-sounding names confused people.
“These results give some indication as to how much this confusion is potentially costing the Irish economy every year,” he said.
Of course, critics might be forgiven for saying that Love Irish Food causes a bit of confusion itself, and consumers may raise their eyebrows at the sight of tea from Africa or drinks made with Spanish oranges carrying its banner. It has rules that members, who have to pay to join the group, must follow, with the most important one stating that at least 80 per cent of the manufacturing process takes place in the Republic. This is what makes Barry’s Tea Irish and Lyons Tea not.
Buying Irish: What confuses you?
Cheese. Some stores even put a green, white and orange flag on it and then you check the label and there’ll be a UK stamp. It drives me nuts because I’d like to support the euro economy and it’s a misuse of the national flag.– John H Cummins
Old Time “Irish” Marmalade? Made in UK. There’s a certain mystery around many Jacob Fruitfield products. – Colin Jephson
Waterford Crystal? Much of it is made in Central Europe. – Eugenia Phelan
I once bought a box with Irish writing on it My Irish teacher told me the words meant “Made In Japan”. – Damien McAnespy
