The Irish Dairy Board is getting a makeover and is set to operate under a new brand name in the coming months.

Ornua is to be the new name for the Irish Dairy Board (IDB). The name will be officially adopted once it has shareholder approval, which is expected to happen in early 2015. The name is derived from the Irish for gold, “ór” and new, “nua”.

The IDB has changed considerably since its foundation when its main aim was to centralise the overseas marketing of Irish dairy products so as to achieve economies of scale and greater brand recognition.

Today, exporting about 60% of Ireland’s dairy products, its core purpose has shifted. Under the leadership of CEO Kevin Lane, the business has expanded considerably following a strategic review undertaken in 2010, when the co-op decided to divest any non-core dairy assets, rationalise the business and acquire high-growth, profitable route-to-market cheese and powder businesses.

Over the past five years, turnover has increased 17% to €2.1bn, while members’ funds have increased 8% to €416m. The group has gone from a net debt of €26m at the end of 2009 to a cash surplus of €52m at the end of last year. This is impressive considering it had an intensive capital expenditure programme totalling some €70m over the last two years.

Over the past six years, it has invested $80m in its US food ingredients business.

In the UK, it invested €13m in Adams Food Ingredients and acquired the Cheese Warehouse. Last year, it pumped €10m into its production facilities in Germany. This year, it acquired a Spanish cheese plant and entered into a long-term supply agreement with International Pizza Chain. Internationally, it invested €20m in Saudi Arabia, while back at home it is investing €30m investment in a butter-packing plant in Mitchelstown.

This year, Adams Foods announced a strategic partnership with First Milk, strengthening IDB’s position in the UK cheese market.

No matter how you slice it, rebranding is extremely important. Not only can it be expensive to execute, it can also be risky. So why would the Irish Dairy Board even consider it?

Against the backdrop of an expected 50% increase in milk output, now is opportune as new international markets need to be found for the extra milk. Not only had the IDB name lost some of its relevance, it sounds like a state-funded body which doesn’t help as the business goes after new international buyers.

Or are we seeing the first steps towards a separation and the IDB becoming an independent body? With farmers paying a significant levy, the result must add to the bottom line and should not be about making the business look good. In this case, the IDB is making a clear statement about the company’s evolution. This rebrand reflects the larger, more sophisticated company it has become.