The acquisition by IAWS of Cuisine de France, the producer of part-baked bread and confectionery, for in excess of £50 million provides further evidence of our robust economic health. But it is also testimony to the ability of Irish entrepreneurs to turn a clever business idea into a multi-million-pound business. In truth, the importance of Irish enterprise and flair in generating the current economic boom has not been fully recognised. Certainly, the record level of growth has been largely driven by the inward investment of foreign multi-nationals in the high-tech sector. But it is the spirit of Irish enterprise that is responsible for the record numbers of small to medium sized companies. In years to come, the success of Cuisine de France will, probably, come to serve as a role model for Irish entrepreneurs in the business schools and colleges. Two young Irish entrepreneurs - one apparently regarded as too academic to make any impression in the hurly-burly of business - identified the market for part-baked bread and established the company.
In the early days the bread was imported from France and delivered - in their own cars - by the two principals to grocery stores. Eight years on, the company has an estimated turnover of some £50 million, annual profits of £4 million and new outlets in both Northern Ireland and Britain. To complete the picture, Cuisine de France, which now bakes all its own bread in Tallaght, Co Dublin, has succeeded in replacing over £10 million worth of imports with home-produced products.
The success of the company, undoubtedly, owes much to the quality of its products. But this is only part of the explanation. Cuisine de France is above all a marketing success. The company did not just identify a market for frozen bread; its very name was intended to mirror complex changes in modern Irish society; the decline in the old suspicious attitude towards foreign food and the manner in which a new, well-travelled sector in Ireland had a natural rapport with all things continental.
The good news is that the company will remain in Irish hands, despite the interest shown in it from Britain and other EU countries. IAWS plc has the resources and the expertise to develop and expand the business. Its future seems assured. The wider question is how the Government can best encourage Irish entrepreneurs. Some progress has been made with the Corporation Tax concessions in recent budgets. But there is still a sense that Irish enterprise is underdeveloped. The tax system and the welter of red tape can still inhibit the development of a small business. And the educational system, especially at second level, does little to foster personal enterprise or risk-taking in business. With this State enjoying record levels of economic growth, there are clearly outstanding opportunities to develop and to build new business ideas. The Government's challenge is to create a business environment in which a new generation of Irish entrepreneurs can flourish.