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Ornua, formerly the Irish Dairy Board, has had its fair share of detractors of late - many from within our very own green isle. Competition is real between dairy companies, not only in Ireland, but abroad. However, in the US, Kerrygold is playing a branded game and in the battle for supermarket share, that’s not easy. Ornua are only going to market with branded Kerrygold products. No own label, no fudging of the country of origin – it’s Kerrygold or nothing.
I recently caught up with Iarlaith Smyth, president of Ornua in North America, to discuss the future of the Kerrygold brand. His answers are very revealing and for anyone in the dairy space, and especially the milk marketing game, the full video is an important watch.
Competition is real between dairy companies, not only in Ireland, but abroad
In an era where ‘own label’ brands are taking over the world, Kerrygold, a traditional iconic brand, is fighting to get products into 26,000 supermarkets all over the United States. Smyth claims Kerrygold butter is the second most popular branded butter in the US. That’s in a sector worth €3.6bn. What’s more, he wants the top slot. “Food is on trend out here[...]there is great capacity for growth and we are going for it.”
Smyth claims Kerrygold butter is the second most popular branded butter in the US
Also in the US, Kerrygold are claiming the top position on the speciality cheddar shelf, with Dubliner taking the honours. Ornua have just entered the Dairy isle cheese shelf.
Selling a brand
In this competitive era, where brands from Ireland and across the world are competing on price, Kerrygold is driving on tradition and investment in a brand. Smyth said: “We are in all the US stores, we have invested hugely in the brand across all platforms. We are pushing the taste, the relationship with buyers, and supermarkets want brands with margins, so they want to work with us.”
So, while there are plenty of challenges in the US market, such as tariffs on imports, brand and price competition, Smyth and the Ornua team are fighting the fight. Farmers get their share of the reward or the added value in premiums passed back to the co-ops from Ornua.
Kerrygold is driving on tradition and investment in a brand
In response to COVID 19 restrictions, Smyth said they worked very hard to get product into supermarkets as consumers stocked up.
“Our team were getting compliments like – 'you're top of the class on service level' from Walmart, and 'thank you – keep it going' from Costco."
If we are to believe Iarlaith Smyth, the US love affair with Kerrygold is growing and is going up and up. It looks like they cleared the COVID-19 hurdle and now it’s in the hands of influencers like Sarah Jessica Parker and US chefs to spread the good news and the butter. We’ll watch this space.
We have invested hugely in the brand across all platforms
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