How big is the Kerrygold brand in Germany?

Kerrygold is the number one butter brand in Germany, with an 18% market share of the 300,000t butter market. Sales of Kerrygold butter in Germany are three times larger than the next largest butter brand, so we are really dominating the German market. The 150g pack of Kerrygold is the fastest selling branded consumer product in Germany.

Why is Kerrygold so popular in Germany?

The love affair between German consumers and Kerrygold butter started more than 45 years ago.

The first pack of Kerrygold butter was sold in Germany in 1973. By the 1990s, Kerrygold had already become the market leader in Germany.

Grass-fed milk produces the yellow colour and unique taste of Kerrygold

The reason Germans love Irish butter is the quality of the product, which comes from the quality of the milk.

Grass-fed milk produces the yellow colour and unique taste of Kerrygold. This is the unique selling point (USP) for Irish dairy. In contrast, German butter is white and has no taste.

Is the butter market growing in Germany?

The retail butter market in Germany is stagnating or even falling slightly. However, the spreadable butter market is growing at 6% to 8% per annum.

So we’re concentrating on the spreadable butter market for future growth and have developed Kerrygold Extra, a spreadable butter, to meet this new demand.

How did last year’s drought impact Kerrygold?

Last summer’s drought forced Irish farmers to feed more concentrates to their cows because there was very little grass available. However, this had an impact on the butter. German consumers knew there was something different because the butter was not yellow and soft anymore.

We even got complaints about the product. So if Irish farmers start to turn the dial and increase the amount of feed in the cows’ diet to increase output, it will have a negative impact on the quality of Irish butter.

Can the Kerrygold brand be extended to other dairy products?

Of course. We know exactly what the German consumer wants and we know what Kerrygold can deliver in terms of consumer expectation.

Kerrygold cheddar is the market leader in Germany for cheddar sales. Unfortunately, the market for cheddar in Germany is just 1% of all cheese sales.

The problem is that a lot of the investment by the Irish dairy industry has gone into milk driers and powders

But we could move the brand into other fresh dairy categories like yoghurt, quark, brie and other cheeses. The problem is that a lot of the investment by the Irish dairy industry has gone into milk driers and powders. When it comes to fresh dairy products, the level of investment is very small scale.

Is GMO-free milk a concern for you?

I think GMO-free is a big danger for the Irish dairy industry. More than 50% of all the milk in Germany is now GMO-free and German consumers assume Kerrygold is GMO-free too.

GMO-free has become the standard in Germany rather than a USP.

As the most loved brand in Germany, Kerrygold cannot deliver that standard right now and that is a threat to the brand.