David Bell 18th September 2014 A Vision for Irish Food Exports David E. Bell & Mary Shelman, Harvard Business School What 1. Ireland has green grass, fertile soil, abundant water a positive world image, (nice people). 2. Ireland has high standards of food safety, traceability sustainable production practices 3. And we can prove it….. “Come See Us: We are ‘Open for Inspection’” Whom 1. Affluent Europeans who seek fresh, local environmentally friendly food. 2. Affluent consumers everywhere who are attracted to the romance of Ireland. 3. Retailers seeking to differentiate their offerings with consumers. David E. Bell & Mary Shelman, Harvard Business School How? 1. 2. 3. 4. A timetable for transition from commodity marketing to differentiation. Development of an umbrella brand for Irish food products. Development of a culture of co-opetition around exports Development of a culture of entrepreneurism. Companies will be 1. 2. 3. 4. “Open for Inspection” Benchmarked against the best in the world (production and taste) Partners in innovation Ambassadors for Ireland David E. Bell & Mary Shelman, Harvard Business School A Call to Action 2014 Situation Analysis Ireland still in “Commodity Trap” Bifurcation of demand: value/premium China import strategy Change in how capital allocated Scenarios for 2030 Scenarios for 2030 The Red Scenario Ireland still stuck in commodity trap Land and companies bought by “China” Ireland used as source of raw material Profits exit the country Scenarios for 2030 The Yellow Scenario Things pretty much the same as in 2014 We discuss Origin Green, Co-opetition and the need for innovation Scenarios for 2030 The Green Scenario Learning from Porter Five Forces • Industry Rivalry Competiveness of Nations • • Natural advantages Strong domestic market based on demanding consumers Natural advantages Natural advantages Coastline Grass fed beef Drinks Industry Dairy Industry Recommendation Ireland must add value to food before it leaves these shores. Recommendation Tap into the passion the younger generation has for food and the food industry. Recommendation The Irish food culture should be developed to match the branding skills of the Irish drinks industry. Scenarios for 2030 The Green Scenario Ireland has designated champions Industry consolidation Targeting value added markets Harnessed the passion of the millennials Vibrant capital market for start-ups Reinvigorated the domestic market The Challenge Create an Irish food culture • • • Older generation ate what they were given Ate what tasted good Younger generation are hungry for new experiences How exactly? Educate the younger generation about food Encourage entrepreneurs Businesses embrace consumer insights Work together to transform the culture How exactly? Establish “Thinking Houses” around Ireland A space where foodies gather and interact. Entrepreneurs, MBAs, scientists managers, venture capitalists…. and consumers. Irish Food Culture as Disruption French have their rich sauces and foie gras Italians have pasta with everything The Irish know what you want. Hedonism meets Local meets Sustainable Origin Green • Sustainability • Health • Authenticity Food Innovation Centre • Science Park • Food Hall • Consumer Insights • Courses/Talks • Start-up Spaces Ireland: Where Nature Meets Nurture Working Together • Co-opetition • Mentoring • Inspiring Irish Food Culture • Appeal to youth • Healthy/Authentic • Complementary to branded drinks industry • Food Tourism “We are already doing this” Have you hired a value added brand specialist from a world class company? Is every product decision based on consumer insight from your target market (millennials)? Do you have the pick of the crop when hiring out of school/university? Origin Green • Sustainability • Health • Authenticity Food Innovation Centre • Science Park • Food Hall • Consumer Insights • Courses/Talks • Start-up Spaces Ireland: Where Nature Meets Nurture Working Together • Co-opetition • Mentoring • Inspiring Irish Food Culture • Appeal to youth • Healthy/Authentic • Complementary to branded drinks industry • Food Tourism