Glanbia’s Premier brand milk has gone on sale in a French retail chain and a trial shipment of fresh Avonmore milk has been sent to the Middle East.
The owner of the two Irish dairy brands, Glanbia Consumer Foods, this week confirmed plans to target other markets in Europe, including Britain.
Speaking at this week’s launch of a new Avonmore Protein Milk for the Irish market, Colin Gordon, head of Glanbia consumer foods, confirmed that production of long shelf life dairy products has started at the company’s new UHT plant in Carrickmacross, Co Monaghan.
Ultra high temperature (UHT) milk is treated at a very high temperature for a few seconds, leading to a shelf life of up to 12 months. It is mainly used in the foodservice sector in Ireland and Britain, but is the main drinking milk market in many regions.
He said the company’s vision is to develop international markets for Ireland’s leading dairy brand.
Gordon said there are plans in place for phased expansion of the UHT plant if markets are developed. “If Avonmore begins to move internationally, we could move through the phases quite quickly,” he said.
He accepted that the strategy of targeting international expansions was based on “a realisation that we cannot rely on the Irish market for long-term growth”.
The company has up to 50% of the branding milk market in Ireland, but has been under pressure in recent years as branded milk has lost market to supermarket own-label product. Northern Ireland-sourced milk, which accounts for one in every four litres sold in the Republic, has been a significant force for change.
French retailer Casino is the first UHT market being tested by Avonmore, while in China, Glanbia is working with Shanghai Bright Dairies.
“We will be appearing at (trade show) SIAL China next week,” Gordon said. In Dubai and Abu Dhabi, the company is test marketing fresh Irish milk with the retail chain Spinneys. “It’s as cheap to fly milk to Dubai as it is to deliver it to Galway,” Colin Gordon said. Spinneys has an 8.5% market share in the United Arab Emirates and reported sales of $970m for 2012.
It’s not an easy bet; challenges in the Middle East include a government cap on retail milk prices. Meanwhile, in China, Irish produce faces higher import tariffs than New Zealand imports and there is a wide range of UHT products already on the market.
Gordon acknowledged that Glanbia were late coming to the UHT market, which is the dominant market for drinking milk in large parts of the world.
He said that Irish retailers “shouldn’t take milk for granted” and that a margin is required for farmers, processors and retailers in order to facilitate investment in developing the product. “On average, liquid milk processing in Ireland is losing money – that’s not good,” he said.
Glanbia has invested in its value-added milk range in recent years, adding SuperMilk, Lactose free, Slimline and other variants. They have also invested in an online system, mymilkman.ie, to manage home delivery.
Glanbia launches Avonmore Protein milk with GAA
Glanbia this week launched a new milk product with 50% extra protein, aiming to capatalise on the increased sports participation.
Marketing of the product with be boosted by a 10-year deal with the GAA and Gaelic Players Association (GPA). The product is made at Glanbia’s Ballytore, Co Kildare plant.
The additional protein in the milk is dairy based - whey and casein. The 10-year revenue share agreement will see a percentage of all sales going towards the GPA Player Development Programme, supported by the GAA. Leading GAA players will be used in marketing the new product.
Pictured at Croke Park were, from left: GPA chief executive Dessie Farrell, Kilkenny player Tommy Walsh, Glanbia Consumer Foods commercial director Michael McArdle, Kilkenny player Jackie Tyrrell and Croke Park stadium director Peter McKenna.





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