'We are far from the niche brand we once were'

Glenisk director Gerard Cleary says an increase in sales is down to innovation and a customer-focused promotional strategy

REVENUES AT Irish organic yogurt producer Glenisk last year increased by 27 per cent to €14 million as the business recorded an increase in pretax profit.

The Co Offaly firm is by run by five members of the Cleary family, and director Gerard Cleary has said the firm now accounts for 90 per cent of the organic yogurt market in Ireland.

Accounts recently filed with the Companies Office show the firm recorded a modest profit of €1,185 in 2010 after recording a pretax loss of €129,560 in 2009. The 2010 profit takes account of noncash depreciation costs of €722,886 and RD costs of €457,048.

Mr Cleary confirmed that the firm, which today employs 50 people, recorded revenues of €11m in 2010, climbing 27 per cent to €14m last year.

Accounts for 2011 have to be filed and Mr Cleary said: “Significantly, our share of the overall yogurt market has more than doubled. In 2008, we had 4.5 per cent share; currently we have 11 per cent of the yogurt market, so we are far from the niche brand we once were.”

Mr Cleary said for the first quarter of this year sales were up 25 per cent on the same period last year.

The company was established in 1987 and today sells 110,000 servings of yogurt every day or 40 million servings per year. The firm’s bestselling yogurt is its lowfat natural yogurt.

Mr Cleary said: “While profits for 2011 were up on the previous year, we are fortunately in a growth phase, as evidenced by the increase in turnover and more than doubling of our market share.

“We are here for the long run, so we will continue to plough whatever resources that we make into our business to develop brand awareness, to continually improve product quality, and deliver new organic products.”

At its Offaly plant, which is part-powered by an onsite wind turbine, the firm processes eight million litres annually and procures 90 per cent of the organic milk produced in Ireland for its products. Glenisk exports about 15 per cent of its products to the U.K., Spain and Portugal.

Explaining the decision to go organic, Mr Cleary said: “We have been organic since 1995. Converting was a huge decision – there was no viable supply of organic milk back then, nor was there evidence of any great consumer demand for organic products.

“But we recognised the gap that existed and crucially, we were motivated by a bigger vision – the idea that organic is a better and more sustainable way to produce food that will benefit the generations to come.”

Mr Cleary said the sales increase last year “is as a result of innovation and a promotional strategy that is all about giving customers more.Our prices to customers have come down, but we don’t compromise on the quality of our ingredients, so that has been a challenge for the business. Our experience is that innovation is rewarded.”

“We work with 50 farming families across Ireland, Mr Cleary said, “40 organic dairy cow farms and a further 10 goat farms. Our goat’s milk and goat’s yogurt represents about 10 per cent of our total sales.”

In terms of expansion, Mr Cleary said: “We expect to see our exports grow significantly in 2012. However, we feel there is plenty of growth potential still in the domestic market.

“Currently, 74 per cent of yogurt sold in this country is imported and we are doing our level best to ensure that figure is reduced.”

The firm is celebrating 25 years in business this year. “This is not our first recession,” Mr Cleary said.

“The mission is to continue to provide quality organic products in an environmentally sound way, at an affordable price. At the same time, our production and ingredients costs are increasing and we believe in paying our farmers a premium for producing organic milk – we currently pay the highest milk prices in Ireland.”

The Danone-controlled Stonyfield Farm, the world’s largest organic yogurt producer, acquired a 37 per cent share of Glenisk through a subsidiary, Stonyfield Europe, in 2006.