What were the initial steps in diversifying into a crisp business?

In 2007 my brother Ed O’ Donnell, who is the seventh generation farmer in our family, wanted to diversify the family farm. We carried out invaluable market research with over 200 shop owners all over Ireland. Ed then went on a crisp making course in the US to learn the business “from ground to bag”. He was the only farmer on the course among executives in large US food companies.

How did you go about developing the product and brand?

We believed it was important to create a product that was Irish and artisan. We also wanted something different with quality and provenance. We held focus groups in Ireland and the UK to establish what people thought of existing products, potential brand names and different packaging designs. The major risk was that we were launching right at the peak of the recession. But since 2010, O’Donnells have been the bestselling Irish hand cooked crisp.

How big is the Irish crisp market?

The Irish crisp market is valued at €116m and growing at 5% per annum. O’Donnells crisps is now the fourth largest brand with a market share of 9.5%. There are a few growth drivers within the overall crisp market including increased frequency but the main growth area is the premium hand cooked crisp segment. Premium crisp sales are growing faster than the total market at 18% per annum. O’Donnells hold 45% of this premium crisp market, with sales growing at 27% this year.

How did you end up partnering with Largo Foods?

We originally planned to build our own production plant on the farm but this would have required a €2m investment. Given the risk involved in this it made sense to outsource production and we did a deal with Largo Foods, who cook our potatoes to our specifications. By outsourcing production, it gave us the time to build the brand, promote the product and meet customers.

Would you advise more SME’s to collaborate with an established player in this way?

Yes, I would, but only if the partnership is right. There is so much involved in making a brand a success, such as growing the raw materials, manufacturing, packaging, distribution, marketing and PR. If some of that can be out-sourced to an established player, even if just as a short-term measure, then it will relieve some of the stress and the insight to be gained is invaluable.