In 2012, the Irish food and beverage sector had a 32% increase to €726m in the value of merger and acquisition activity. Most of the deals were made between Ireland and US.
In Ireland, Glanbia and drinks giant, company named C&C Group Plc had spent around €300m, on acquisitions. In US, the company named Hain Celestial had acquired Cully & Sully.
In 2012, the food and drink sector of Ireland contributed €9bn in exports, which comfortably outperformed Britain’s output, according to Grant Thornton, a leading food consultancy firm.
Because of natural green environment and the high standards of regulation and food safety, the Irish food companies have gained a reputation. The food companies in Ireland must continue in maintaining this robust and safe supply chain in order to protect the industry’s reputation.
Ireland must have collaborations with other countries by creating resilient supply chain that will minimise the costs and also ensures that the Irish produce maintains its international standing, according to Ciara Jackson, head of food at Grant Thornton Ireland. She added that around 90% of corporate investors now view new product development as being the main driver for growth for food firms.
Research and development & investment are a priority for Irish food companies, according to the report. The report also says that in 2012, Kerry Group’s which is a leader in global food ingredients markets had invested €100m in a new R&D campus which has enhanced Ireland’s reputation in this sector.
Since the acquisition activity increased between US and Irish firms, it has given a future to Asia which might have a growing market for potential deals in this industry since Asian companies are potential investors in Irish food businesses. In 2012, Irish food and beverage exports to Asia had a growth of 25% and the region is being targeted for further expansion during 2013.