Hannah Fraser Nordics

Market Watch – Nordics

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“The Nordics is renowned for being one of the most progressive, open, and innovative regions in the world. Made up of Sweden, Denmark, Norway, Finland, and Iceland, it has not traditionally been the first choice for Irish exporters, but nonetheless the region presents opportunity for companies looking to expand their business internationally.

Over the last five years exports to the Nordics from Enterprise Ireland clients have grown 35% and there are now over 450 exporters to these markets. And despite Covid,  despite Covid, Hannah Fraser, Director Nordics Region, says opportunity exist for companies which bring innovation and something different to market.

The region is culturally and geographically close to Ireland and companies here are open to innovation and international partnerships. While negotiations often taken some time, once you secure a client, Nordic customers are committed, reliable and willing to pay a good price for solutions they can see value in.

In addition, Sweden, Norway and Denmark are in the top five countries for non-native English speakers, so language isn’t a barrier like other European markets – all of this adds up to a region which is lucrative and easy to do business in.

However, there is no denying that the pandemic has caused a lot of disruption to industry across the globe and in every sector – and the Nordic region is no different.

The response has differed country to country and while it remains to be seen how these measures will impact the economy in the long run, the Nordic economies were some of the strongest globally at the start of 2020 and look, so far, to be more resilient and set to recover faster than many of their European neighbours.

In the most recent figures, Sweden reported a GDP fall of 8.6% and Denmark of 7.4% during Q2. Norway’s GDP is estimated to have fallen around 7.1% between the months of March to May, while Finland, which undertook some of the stricter measures in the Nordics, reported a GDP fall of only 3.2%.

Irish companies working in the region have been affected in some ways. Travel restrictions, in particular, have proven challenging for staff travelling in and out of the region and also hindered Irish companies’ ability to meet customers, or potential customers, in person, which has affected the pipeline of new business for this year and into 2021.

But these issues are being addressed as firms have ramped up their digital presence to connect with customers in new ways and are now working more closely with local partners and suppliers. In addition, the supply chain across the Nordics is operational and the major construction sites, which many Irish companies are working on, have remained open throughout and business is now moving well in many areas.

Ultimately, the Nordics is a region of huge diversity and opportunities for companies differ from country to country and sector by sector. Well-established opportunities exist for Irish Engineering and Hi-Tech Construction companies, particularly around the construction and fit-out of the hyperscale data centres being built across the region.

There are also some emerging opportunities in areas like Fintech, Lifesciences, Telecoms and Energy and Irish firms have started to capitalise on these. In addition to this, one of the major themes for Nordic companies is around sustainability and building sustainable businesses.

Indeed the region has been at the forefront of sustainability for years and is considered to have some of the most ambitious climate action plans in the world – and this is an area in which Ireland can really learn from. Companies of all sizes here have a focus on building sustainable companies and integrating the UN Sustainable Development Goals into their business models.

This commitment to sustainability drives market demand for Irish products and services which in turn delivers solutions and innovation to areas such as renewable energy, electrification and energy efficiency.

There are a number of Irish companies which have successfully secured contracts in the Nordics in recent months including Mainline Power, CXIndex, Cambrist and XOcean – so the future does look bright for the region. Our team at Enterprise Ireland are on hand to support Irish companies to continue to grow and win business here.”

Get key insights on the supports available from Enterprise Ireland.

Enterprise Ireland’s top tips for entering the Italian market

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Italy is the third-largest economy in the Eurozone and the fifth largest market in Europe for Irish exports

If you are considering doing business in Italy, please be sure to explore our tips to enter the market below and also be sure to reach out to our team in Milan.

  • Expect a longer timeline for market penetration in this region than in other European markets. Building a relationship with a potential customer can take time, and it’s a lot about trust. Once you’ve gained it, the Italian customer is very loyal.
  • Being introduced by an Italian company or by an institution can facilitate initial contact.
  • Costs for shipping goods to Italy are quite high, which can affect the final price of goods and therefore their competitiveness.
  • Market research and competitor analysis are vital if you want to approach the Italian market. You may find out that the local competition is extremely strong.
  • The perception of Ireland and Irish people is generally very positive, so build on it.
  • Be aware that the level of bureaucracy you find in Italy can be difficult to understand and frustrating at times.
  • If you intend to hire local staff, be aware of the fact that labour law is extremely rigid in Italy, definitely more rigid than in most European countries.
  • Meeting in person is very important in Italy, contact by email or phone is not enough. If you have a distributor, make sure you visit him/her on a regular basis. Meetings can happen over lunch or dinner – the eating element is very important in Italian culture and involves more than a simple sandwich.
  • Dress code during meetings is important. The first impression is made also on the basis of what you wear.
  • Don’t assume that everybody speaks English in Italy. It is quite often not the case. Making the effort of saying a few words in Italian is always appreciated
  • Be aware that the business culture in Italy is much more formal than in Ireland: don’t call people by their first name at the first meetings. Titles and hierarchy are important but the formal approach can vary according to the sector.

If you are considering doing business in Italy be sure to reach out to our team and read our Going Global Guide for more information.

 

If you would like to know what to prepare ahead of your first MA call, click the graphic below

National Women’s Enterprise Day 2020 a virtual, and real, success

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Covid couldn’t stop Ireland’s most successful female entrepreneurs from stepping up to inspire more

National Women’s Enterprise Day 2020, organised by the Local Enterprise Offices, was like no other in that, because of Covid, for the first time in its 14-year history, it took place entirely online.

In all other ways, it was exactly the same – providing women with the inspiration, support and confidence to start and grow a business.

Sheelagh Daly, Entrepreneurship Manager at Enterprise Ireland, has been involved in this flagship event for women in business right from the start.

National Women’s Enterprise Day was an initiative set up by the Local Enterprise Offices in 2007, supported by Enterprise Ireland.

“Back then the landscape was quite different in that there was a dearth of female entrepreneurial role models. If you went back and looked at the newspapers, for example, there weren’t many women being profiled in a business or entrepreneurial setting,” says Daly.

Providing role models 

“Research shows that role models are an important way to inspire women and give them the confidence to start a business.  So we knew we needed to profile women who had done it successfully already. It was that whole concept of ‘to be it you have to see it’,” she says.

But a lack of role models wasn’t the only challenge.

“At the time there was also a real lack of access to business networks for women. While the Chambers of Commerce were, of course, important, they tended to be for more established businesses. More informal networks, such as rugby clubs and golf clubs, didn’t provide the same level of access to women.”

There was a need for “a mechanism to provide women with access to networks in order to inspire, demonstrate and build confidence in female entrepreneurship,” she says.

National Women’s Enterprise Day was just the mechanism.

Showcasing success – and support

“It was also a means to disseminate the huge range of supports available from lots of different government agencies, not just from Local Enterprise Offices and Enterprise Ireland, but from Intreo, Failte Ireland and the Credit Review Office,” she explains.

“The idea was to bring all these things under one roof, on one day, with one big bang that would put female entrepreneurship on the map.”

It did just that.  “The first event was held in Mullingar and was fantastic, and overbooked, so we carried on.”

Indeed, the event grew so much that in recent years the Local Enterprise Offices have run regional versions too, to enable even more women to attend.

All followed the same proven format of enabling participants to listen to successful women at different stages of their business journey, to gain an understanding of the supports available to them, and to have an opportunity for networking.

“Then, in 2020, we had Covid,” she says.

Covid can’t stop it

Having supported so many businesses to ‘pivot’ to online to cope with the pandemic, the network of Local Enterprise Offices were quick to do the same with National Women’s Enterprise Day. It took place on Wednesday 14th October, entirely remotely, and was a huge success.

“We saw an enormous attendance of 1641 people which was amazing and well reflected this year’s theme of ‘Stronger Together’,” says Daly.

Speakers included Olympian turned businesswoman Derval O’Rourke, who talked about the strength, discipline and resilience required to deliver peak performance in one sector before pivoting to another.

Sonia Deasy, founder of international beauty brand Mortar & Pestle, spoke about her journey taking a brand from “local to global”.

A series of ‘leading lights’ included successful female entrepreneurs across a range of sectors, from Clare Hughes of CF Pharma in Kilkenny to Mary Walsh of Ire-Wel Pallets in Wexford and Odilon Hunt of AVA Audio Visual in Sligo.

Exploring overseas markets

Sheelagh Daly hosted a panel discussion entitled “Exploring Overseas Markets”, featuring expert commentary from Anne Lanigan, Enterprise Ireland’s Regional Director Eurozone, and Marina Donohoe, Enterprise Ireland’s Director for UK and Northern Europe.

As well as exhorting female entrepreneurs to explore Eurozone markets, they pointed out that the UK will always be hugely important to Irish businesses too.

Marcella Rudden, Head of Enterprise with Local Enterprise Office Cavan explained the questions to address when starting your export journey.

“She spoke about how to choose a market to target and how the Local Enterprise Office should be your first port of call because it has the supports to help you, both financial and otherwise,” says Daly.

One of the main threads running through the day was not to be afraid of exporting, she says. “The message was that it isn’t something that should be seen as intimidating and that there is help available.”

That help is not just from Local Enterprise Offices but from all sorts of sources, including networks for women in business in countries such as France and Spain, delegates heard.

“Before you commit to a market do the research, make sure that it’s the right market for you and that you can compete in it, and don’t be afraid to ask for help,” says Daly.

Information is crucial. Both men and women have similar business ambitions but research indicates that women take a more cautious approach, including in areas such as borrowing for business. They typically “prefer more information before they take a risk”, says Daly.

“The ambition is very much there but the approach is different.”

Women’s success is Ireland’s success

National Women’s Enterprise Day 2020 took place in a year which also saw the launch of Enterprise Ireland 2020 Action Plan for Women in Business. This important six-year strategy to support female entrepreneurship was launched in February, just before Covid.

“The reason such emphasis is being put on women is because we are still looking at a much higher proportion of men in leadership and entrepreneurship,” explains Daly.

This needs addressing because, both as an economy and a society, we “need the skills and talents of all our population to be realised,” she says.

We also need those businesses that are started to be the best they can. “All the research demonstrates that the greater the diversity the stronger, more profitable and faster-growing the business,” says Daly.

“That leads to wider economic benefits, so it’s a real economic imperative that everybody, regardless of gender or other diversities, does not face barriers when it comes to starting or growing a business.”

 

Watch the ‘National Women’s Enterprise Day Virtual Event’ sessions on-demand here

 

Cara Edwards title

Graduate Stories: Playing a tangible role in supporting Irish enterprise

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Cara Edwards - Grad Programme title

Cara Edwards is currently on Enterprise Ireland’s national graduate programme working as a Development Executive in Dublin within the Life Sciences, Construction, Cleantech, Timber and Consumer department.

I became interested in the graduate programme while I was studying for my Masters in Strategic Management at TU Dublin, where I specialised in innovation. Enterprise Ireland’s support for Irish companies was constantly referenced in my studies, so I knew it was somewhere that I would like to apply to.

 

Applying for the Graduate Programme

The application process is quite lengthy and intense. It’s very important to dedicate time to completing your application. There are multiple stages so it’s vital to research what’s needed in each stage and understand what Enterprise Ireland is looking for. Once you’ve successfully completed the initial online assessment, you’re invited to an assessment day with other candidates – I remember being extremely nervous about this but as soon as I met the assessors, my nerves were put at ease. It’s a great opportunity to show your strengths and to get an insight into what Enterprise Ireland is about and what the work entails.

There are lots of opportunities in various departments, especially on the national programme, and you can indicate your preference before the final interview.

 

Lots of responsibility from Day One!

The role has given me a unique opportunity to work with a variety of companies from a wide range of sectors; from Day One, I was given lots of responsibility working directly with clients and supporting colleagues on various initiatives. Over the past 10 months, I’ve been project managing one of Enterprise Ireland’s biggest events, Med in Ireland, which is a biannual high-profile national event that covers the entire spectrum of the Irish medical technologies sector. My role involves driving and coordinating a team of colleagues from various departments, ensuring that planning is underway and that we’re achieving key project milestones. This project has enabled me to work closely with many of our overseas colleagues too.

“Another highlight for me has been working as part of a small team on the Online Retail Scheme, where we administered over €5 million in funding to retailers in response to the huge impact that the Covid-19 pandemic had on the retail sector.” says Edwards

Now that the retailers have had the opportunity to implement their projects, it’s extremely rewarding to see the results – by improving their online capability, they’re more competitive and resilient as a result. This is an example of how rewarding the work in Enterprise Ireland can be.

 

Developing a skillset

I’m now half way through the two-year programme and I’m starting to think about what happens next. I personally would like to stay with Enterprise Ireland as I feel there are plenty of opportunities to further my career. Also, by working so closely with companies, you gain a deep understanding of how they operate and you can take these learnings with you whether you stay with Enterprise Ireland or go elsewhere. It’s also been very inspiring to work with entrepreneurs.

“The Graduate Programme is a great opportunity to work with different companies and build a broad set of skills; there are continuous career development opportunities and lots of learning available through courses, webinars and workshops.” says Edwards

Enterprise Ireland is also incredibly diverse so there are multiple ways to get involved and build your skillset. Plus the work is very rewarding as you’re playing an active role in supporting Irish enterprise. I would really recommend the programme to anyone interested in a career in business. 

To learn how Enterprise Ireland’s Graduate Programme can help you take the next step in your career visit National Programme /  International Programme

Food for thought: How small businesses are getting the better of Covid-19

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Those in the food and drink industry speak to journalist Clodagh Dooley about how they’ve adapted to the crisis and their future goals

“All food and drink start-up businesses have no doubt been impacted in some way because of the pandemic,” says Louis Eivers, Development Advisor of ‘High Potential Food and Drink Start-ups’ at Enterprise Ireland. “But what has been astounding is the fact that a lot of these entrepreneurs, particularly those on our Food Works Programme, have kept a positive attitude throughout these challenging times. They’ve even managed to grow from the crisis.”

Food Works – run by Enterprise Ireland, Bord Bia and Teagasc – is Ireland’s only dedicated accelerator for food and drink businesses. Each of the three agencies involved with Food Works plays a specific role in taking Irish food to global markets. Enterprise Ireland supports business funding development and this year, offered up to €35,000 in funding for participating food and drink companies. Bord Bia helps with the consumer and market aspects, while Teagasc focuses on the technical side, product development and manufacturing.

The programme brings each of these agencies’ complementary skills together in the one place, as well as providing business advisors of varying expertise, to help companies with their start-up goals.

“It’s a one-stop-shop for start-up food and drink companies,” says Louis. “We typically take on 6-10 companies each year, so it can be competitive to get on the programme. We look for those early-stage companies, that are less than five years old and require support, keeping HPSU (High Potential Start-Up) criteria in mind.”

 

Adapting virtually

And high potential is definitely what this year’s participant companies have shown since the 2020 programme launched in March – despite the disruption of coronavirus.

Craig Grattan, founder of Sweet Potato Pizza Company, says the pandemic has actually been beneficial for his product – a healthier, but equally as tasty, pizza that has a sweet potato base. “March saw a 42% jump in sales from February. In a situation where a lot of companies will unfortunately not see the light of day again, it’s been incredible to see this increase in sales.

“The Food Works Programme definitely has a part to play in that too, as the level of work we have done already over three months has been brilliant. In previous years, mentoring sessions would have been done face-to-face, now it’s all online so we have access to our business advisors instantly.” says Grattan

Louis Eivers of Enterprise Ireland, says that, despite being initially sceptical about moving the programme solely online, companies are, in fact, getting more support than ever. “Now, advisors that would usually travel to Ireland from the likes of the UK or Germany, are able to dedicate more time to the entrepreneurs online.”

 

Venturing forward

Sinéad Crowther, Founder and CEO of Soothing Solutions – unique products which offer all of the benefits a hard-throat lozenge would give, but without the choking hazard – says without Food Works, her company would have made “little to no progress”.

“Everything in food development for start-ups simply shut down. Food Works has been our lifeline. The programme has opened doors for us and we have been able to scale up our manufacturing capacity with a team of experts that we could not have afforded to pay, had we been approaching them without the programme.” says Crowther

Sinéad’s goals for the future are to have the company’s products rolled out across Ireland in the next 12 months and look to start exporting to their identified channels the following year.

Craig says his business goal is to also expand. He wants his Sweet Potato Pizza, which is currently available in 43 stores including SuperValu, to be available nationwide, in Europe and in America. “Whatever your business goals are, the different levels of ambition are met by the levels of expertise from advisers,” he says of the Food Works Programme.

Sinéad says that Food Works will play a huge part in their business plan. “The programme is critical in guiding us, as we build and develop our brand identity.”

But one of the most important things Sinéad has learned from the whole experience so far? “We have learned to venture forward, no matter what the circumstances.”

Learn how your food business can develop and accelerate its growth with the Food Works program.

 

Bean & Goose founders

The sweet taste of success

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When the Covid-19 crisis hit, Irish chocolate company, Bean & Goose, made the most of the lockdown

“The lockdown began right before Easter, which is one of our biggest times of the year,” says Natalie Keane, co-owner of Bean & Goose. “We had finished making and packing our Easter products and we were just about to start shipping them out to our retail customers. But in about two days, we lost about 95% of our customers and our Easter products were sadly left on the shelves.”

Set up in 2016 by sisters Natalie and Karen Keane in Co Wexford, Bean & Goose specialises in making craft chocolate bars, truffles, and chocolate gifts such as their Tasting Club, a subscription service which sends out two bars of chocolate, a once-off bar and one from the core range. They started selling to markets around Dublin until they began getting orders from retail outlets.

But because they were focused on in-person retail through independent retailers, hotels, and cafés to sell their products, the lockdown came as a shock to their business.

“We quickly made the decision that we would have to really ramp up our online campaign because the only way to get these products to our customers was through our online store,” says Natalie. “We were lucky that we invested heavily in our digital marketing in the last couple of years so that when we asked our customers to make the transition to buying online, they were very open to doing that.”

Because of reaching their customers online, the sisters managed to sell out their Easter range, from dark chocolate hares to chocolate goose eggs. In fact, sales figures went up 65% in March, April and May 2020 compared to the same time period in 2019. Within two weeks of online sales, they knew that their customers were loyal to them and would likely continue to buy the products this way.

 

Hard work and support

Natalie and Karen say that a big reason why their business was able to make the leap online and succeed, was due to their hard work over the last few years marketing and building up a solid customer base. This work was helped by being accepted for Food Works in 2015, an Enterprise Ireland, Bord Bia and Teagasc backed accelerator programme for food and drink businesses.

“This was hugely important for us,” says Natalie. “It allowed us to exhibit in bigger markets, secure feasibility funding from Enterprise Ireland, and it really set us up to think of the business as a scalable opportunity. Food Works gave us the roadmap to be able to build the business with the mentoring, advice and contacts they made available to us.”

While this support has helped them achieve success, it was also great timing which helped them during the lockdown. The drive online actually represented an opportunity they didn’t realise they needed.

Natalie says, “We are in a transition stage at the moment as we are changing our core range of chocolate bar flavours for the first time in five years, as well as our packaging. We had always planned to do that at this time, but because we used to deal predominantly with retail customers, we believed we would have to scale back a little and maybe even close the store as we transitioned.”

“Now that we’re trading online for most of our business, we have been able to make the transition and continue trading because our online customers are perfectly fine with the product arriving in the interim packaging and flavours. It’s worked out really well for us.”

As Bean & Goose have managed to keep their business thriving under the lockdown pressures, they also took part in an initiative to highlight the work of frontline workers during these extraordinary times. They were one of 18 Irish designers and makers to give away their products in a hamper to a nominated hero.

“One amazing thing I have noticed through all of this is how very kind and thoughtful people are to each other during this time. So they want to give gifts and there’s no better gift than chocolate. We are definitely selling the right product at the right time!”

Learn how your food business can develop and accelerate its growth with the Food Works program

Creating a buzz in the drinks market

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Irish alcoholic beverage brand Beekon Batches are growing as a business and have not let the lockdown be a buzzkill

“When Covid-19 hit we had to get over our two weeks of thinking ‘do we have any business left, most of our sales were in bars, restaurants and hotels’,” says Karen O’Neill, founder of Beekon Batches. “We quickly got over the shock, pulled ourselves together and hatched a plan! “We couldn’t let it pull us down, so we decided to pivot the business online going direct to consumers whilst also strengthening our retail presence.”

Entrepreneur Karen alongside her wife and business partner Helen Kennedy are the brains behind Beekon Batches, an Irish-made honey-based, all-natural alcoholic beverage launched just last year. Karen, having been involved in the drinks trade for 20 years, realised people’s attitudes were changing on what they consumed. All-natural products, free from additives and preservatives, were growing in populatiry  and saw the opportunity to create   something new.

Beekon Batches is a “honey refresher” and is made with the love of all things bees. It’s created from honey infused with natural ingredients such as fresh lime and ginger, and has  an alcohol content of 5%.

Having  just started on the Enterprise Ireland, Bord Bia and Teagasc accelerator programme called Food Works, the Covid-19 crisis hit, and  their business hit a proverbial wall  due to having limited retail presence.

“We are one of the classic, positive pivot online stories as we managed to be successful with our online business and growing our retail footprint.A lot of that is based on the support, the resources and help we received from the Food Works programme.” says Helen

Helen says, “, When Covid hit, Food Works kicked in with a comprehensive, all encompassing program of support tailored to each participating business.  This was facilitated online right after we went into lockdown.  I have gained invaluable business and management insights across the whole business.”

Everyone on the programme is going through the same thing together so Helen says that every week everyone goes out to buy a product from another business on the programme. “There is a lovely level of support and comradery there.”

A hive of activity

Karen says that from being  anxious at the beginning of the crisis, today she is amazed at how phenomenally well their business has taken off .

“The combination of our new store listings such as SuperValu & Molloys Off licence stores, our online direct to consumer sales and our existing listings that have continued to support us means that we are delivering double the revenue than we were pre-Covid, ,” says Karen. “Our customers and members of the trade have really rallied around us and our story in particular. That is the fact that we are women with a brand-new product, trying to break down the gender bias in a very male-dominated drinks industry. Consumers too are responding very positively, they are craving something new, particularly at this time and Beekon offers them just this, something different and exciting.

“Everything we do is different to anything else on offer right now. Our drink is new, our packaging is textured and fun, and the locations where we sell are based on demand. We always ask our community where they want us to stock and we try to make that happen.”

Because of this support, one of the ways Beekon Batches has been able to give back is by supporting the bees. They do this with their bee pollinator programme. Wherever Beekon is sold, the business tries to do something to help the bees. For example, providing wildflower bee bombs to deploy wildflower seeds, and providing bee hotels where bees can make their nests.

“Last summer we partnered with Airfield Estate to allow bar and store staff to undertake full immersive bee experiences to heighten the awareness and effect behaviour changes to help support the bees. I think the trade really loves what we do here as it’s meaningful and impactful with its intention.”

The future looks very bright for Beekon Batches, so what does Karen see for the future of the business?

Karen says, “We want the drink to be universally sold in Ireland and then internationally. Consumers are becoming more conscious about what they’re consuming these days and about their own influence on sustainability, so another goal is for everyone to buy with this in mind. Our product can be the thing people choose to make a difference in the world and that’s an amazing feeling.”

 

Learn how your food business can develop and accelerate its growth with the Food Works program

 

Keep going, keep growing with Keogh’s

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Tom Keogh, MD of Keogh’s Crisps – producers of award-winning crisps and potatoes – talks about pivoting his business during the pandemic and giving back to Ireland’s frontline healthcare workers.

Being a family business that sources its ingredients and hires its staff locally, Keogh’s have an ethos that is based around community and support. And this very ethos is what prompted founder Tom Keogh to set up a fundraising initiative during the pandemic called Ireland Thanks You.

“My wife, and many other family members, work as nurses,” he explains. “So I got a real insight into the day-to-day risks their roles involve. We started doing food drops around hospitals but we wanted to do something bigger, especially as we couldn’t find a charity for frontline healthcare workers that put something directly in the hands of healthcare workers.”

The fundraiser guarantees that 100% of every donation goes directly to healthcare workers. Those in facilities that were most greatly impacted by Covid-19 will receive a €100 voucher.

“We have raised about €80,000 so far and are on track to reach €100,000 by the end of the month, which is fantastic.”

 

Challenges and positives

Impressively, Tom and his team put in long days and nights over a period of three weeks to develop the campaign, even though there were a lot of changes happening within their business due to the pandemic. However, he feels fortunate that business continues to boom.

“Two-thirds of food in Ireland is consumed in the home and one-third is outside of the home. Two-thirds of our sales were in the multiple retail sectors, in Tesco, Dunnes Stores, and Musgrave, for example, and one-third of our sales were in the food service sector.

“We saw one-third of the sales of our crisps completely disappear overnight. Then there was the uncertainty with exports. The pandemic has naturally had a negative impact on any development we had been working on overseas.”

But on the positive side, Tom says the increase in top retailers in Ireland was dramatic.

“Some weeks, we saw a 70% increase in demand. The extra demand more than accounted for the loss we saw in the food service sector.”

“We were also lucky enough that we had a huge amount of products on the sea when Covid-19 struck, which meant they were pulled in quickly to overseas markets. The States have seen the same big demand in multiple retail, that we have seen in Ireland.”

 

Helping hand

Indeed, Keogh’s are no stranger to trying times, having seen a 10-year decline in fresh potato consumption in Ireland in 2011.

“Our market was disappearing for fresh potatoes in Ireland and being potato growers for over 200 years, we needed to do something about it,” says Tom. “We were part of the Food Works Programme, an accelerator programme for high potential food businesses, for our potatoes at the time, and the idea for crisps actually spun off towards the end of this.”

Tom says Enterprise Ireland played a huge role in helping them get the business off the ground. “We had fantastic help from the Local Enterprise Office in Fingal, who provided us with a small repayable grant to get the business up-and-running. Bord Bia were a help too.

“We have seen considerable growth in the business since and we continue to have strong links with Enterprise Ireland.” said Tom

What has Tom learned from the pandemic?

“The world is a small place! We never imagined coronavirus would impact Ireland as much as it has, so it has opened my eyes. One of the things that has worked well for us is the fact we sell products in different sectors in many different countries. We had some areas that performed extremely well and some were poor, but because we had that spread of business, it allowed us to continue trading.”

During the pandemic, the Keogh’s Crisps team was also able to focus on the e-commerce side of things and launch an online shop section on their site.

“We turned it around in about nine days. A big thing I’ve learned is that, as a business, we can keep focused, adapt, and do anything when we need to.”

 

Visit Keogh’s to see their story and full product range

Market Watch – Spain

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Overview

  • Spain has begun to officially open up again, but some restrictions will remain in place for the coming weeks.

  • Challenges around transportation and quarantine still exist, but supply chains are moving.

  • Irish businesses should continue to communicate with their existing clients as the country is very much open for business.

Like the rest of Europe, Spain was badly impacted by the global pandemic but Alberto Cisterna from the Enterprise Ireland office in Madrid, says restrictions have begun to be lifted and businesses are easing towards a new normality.

“The Spanish healthcare system was overwhelmed by Covid-19 and Spain was one of the first countries to enact a total lockdown,” he says. “But we are very happy to see that the number of cases has fallen sharply, and this has enabled the government to start easing some of the measures which have been in place since March.

“This plan for a Transition Towards a New Normality was announced at the end of April and consists of four phases which are intended to relax the restrictions in a gradual, flexible and adaptive way. And although it started officially on the 4th of May and will last for eight weeks until the end of June, we are still in a state of alarm.”

 

Challenges and opportunities

Cisterna says while businesses in Spain are getting back to normal, some challenges do lie head.

“Firstly the challenge exists regarding transportation options and border restrictions as Spain’s air, land and sea borders have been closed for entry from May 15th and remain so – with limited exceptions,” he says. “And until the 30th of June, passengers arriving in Spain from other countries will be required to quarantine in their place of accommodation for the first 14 days immediately following their arrival.

“It is also important to highlight the fact that the supply chain in the country is fully operational as these measures do not apply to the transport of goods.” Alberto Cisterna, country manager Spain and Portugal

“And also teleworking, or video conferencing, is still the main priority for businesses across the country in response to the pandemic and this will continue to be the same for at least one more month.”

But despite the hurdles which need to be overcome, he is quick to point out that there are also some opportunities to be had, providing clients continue to engage with their counterparts in Spain.

“I would like to remind our client companies that Enterprise Ireland in Madrid is open for business and we are conducting as many engagements as possible,” he says. “In fact we are very happy to say that we have seen some deals confirmed even during the worst phase of the pandemic.

“One important recommendation for our client companies is to stay in touch or to reconnect with their agents, distributors or business partners and also to plan ahead for the Covid-19 post new normality – it really is very important to keep communicating.

“In addition, I would like to remind people that Spain is the fourth biggest economy in the Eurozone, and it represents a great opportunity because of its market size, particularly in sectors such as ICT or digital technologies.

“So my key message today is that we are looking forward to continue working with our Irish client companies as Spain is definitely open for business – and as sale cycles in this country have historically been very long, let’s use this time to plan for the future as Spain is a big economy with a lot more room for new opportunities.”

 

Get key insights on doing business in Spain and the supports available from Enterprise Ireland.

Horizon 2020 – MiniStor – supporting the development of clean and efficient energy

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“Taking part in a Horizon 2020 project is a good way to progress not only as a researcher but also personally in terms of management skills. I’ve found the whole experience to be very enriching.”

Dr Carlos Ochoa, Co-ordinator of the MiniStor Horizon 2020 project

 

Overview:

  • Tyndall National Institute in Cork is leading an international consortium that is developing an advanced, compact, integrated solar-powered system that stores heat in a novel way.
  • The project is being significantly funded by the European Union’s Horizon 2020 research and innovation programme.
  • The project is on course to achieve its first milestone of completing a preliminary design by July 2020.

 

MiniStor case study

If two heads are better than one then it goes without saying that multiple research centres, universities and specialist companies working together can achieve more than one. That’s the philosophy that underpins the Horizon 2020 programme. The European Union’s research and innovation instrument has an €80 billion funding pot and is supporting consortia across Europe to transition great ideas from the laboratory to the market.

One of those great ideas is the MiniStor project, the brainchild of Dr Carlos Ochoa of the International Energy Research Centre, which is based at Tyndall National Institute in University College Cork in partnership with Cork City Council.

“In basic terms the MiniStor project is about storing heat from the sun to use later. The heat is captured via renewable energy sources such as solar panels and then stored in special salts, making it much more energy efficient than water-based systems,” explains Ochoa.

The project aims to significantly decrease energy consumption in residential buildings, reducing their overall environmental impact.

 

Building the team

“When I read the Horizon 2020 call for technologies enabling energy-efficient systems and energy-efficient buildings, I made a preliminary sketch of my idea and then we considered what the scope of the project would be and started looking for scientific partners who could help us make the idea a reality,” says Ochoa.

“We needed particular expertise so we began contacting people via websites and LinkedIn to get them interested in the idea. We got help from Enterprise Ireland and the Tyndall European Office to find and contact some key partners.  

“In the end we found 17 other institutions across eight countries who were interested in working with us. Then we were ready to respond to the competitive call.”

 

Applying for Horizon 2020 support

The process of applying for Horizon 2020 support is sometimes perceived as being complex and onerous but, as Dr Ochoa explains, there is plenty of help available.

“It’s true that preparing the application is very time intensive but there are support services available. Nationally, Enterprise Ireland leads the Horizon 2020 support network and their support was excellent in terms of reviewing the main idea to determine if it had some potential; that’s like a reality check. They were also able to give advice on what’s required in the application documentation,” says Ochoa. “I also had a lot of support from within the Tyndall National Institute.”

The application was a success and the project received funding of over €7.5 million, some 87% of its total budget.

“Without Horizon 2020 support this project could not have gone ahead. We may have been able to do something at a much smaller scale but we wouldn’t have had access to the same amount of expertise,” says Ochoa.

 

The experience so far

Ochoa has been a participant in Horizon 2020 projects before but this is his first time as co-ordinator.

“Being the co-ordinator for an international project that has so many participants can be challenging because everyone has their own working style and their particular corporate culture so you have to balance the needs of the partners with the needs of the project. So far it has been working well and we’ve been able to iron out any small issues that have arisen,” says Ochoa.

Now six months into the project the team are closing in on achieving their first milestone – the preliminary design for the MiniStor system.

“It’s not a trivial achievement because all these components have not been combined before.”

Unfortunately the advent of the Covid-19 crisis and ensuing lockdown has impacted on the project. “We have slight delays because we have some demonstration sites, which are actual homes in different countries around Europe. The restrictions are preventing us from entering the houses to do monitoring. So that’s pushing back the timeline for a few months,” says Ochoa.

 

Advice to others

Dr Ochoa is keen to encourage other researchers to apply to Horizon 2020 or its successor Horizon Europe (2021–2027), an ambitious funding programme that will be larger than Horizon 2020 and will begin to roll out next year.

“It’s a good way to progress not only as a researcher but also personally in terms of management skills, which are required if you are aiming for more senior positions. I’ve found the whole experience to be very enriching. Of course it takes a lot of time and effort but it pays off,” says Ochoa.

“My experience of interacting with Enterprise Ireland has been very positive. If you have a question about Horizon 2020 or Horizon Europe they know very well what’s going on and can provide advice, and they are also very ready to give us talks explaining the scope and opportunities presented by EU programmes.”

 

For advice or further information about applying for Horizon 2020 support please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie

 

Industry Bulletin – Automotive – New mindset to focus on future solutions

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AVL is the world’s largest independent company for the development, simulation and testing of powertrain systems for passenger cars and commercial and industrial vehicles and is directly exposed to the deepest and most rapid business downturn in the history of the automotive industry. Dr. Daniel Kürschner, Head of the Company’s Munich-based advanced driver assistance systems (ADAS) centre, remains optimistic, however.

He points out that AVL is not a traditional Tier 1 supplier to the industry and is not directly connected to the supply chain. It is therefore also not directly affected by vehicle sales as many other companies.

While some projects are subject to renegotiation and delay, there are positives to the current environment, he notes. “We as a German or European car industry need to see this crisis as an opportunity to rethink our traditional mindset and to focus on more sustainable, future-oriented solutions, following the CASE trends (connectivity, autonomous, sharing/subscription and electrification) and also noting different demands of the younger generations.” says Kürschner. “Car makers would have the time now to catch up on delayed technology developments which they have not focused on over the past decade. A lot of companies worldwide, particularly innovative start-ups, have technologies available that could be combined with those of the traditional corporations in order to speed up launching competitive products at the end.”

AVL is already moving into new areas such as e-mobility, fuel cells and ADAS. “We see a big opportunity to grow within these new business fields and it would be great to see a green economy emerge in the near future,” he adds.

As a direct impact of Covid-19, also AVL has successfully switched to remote working. “Like for others, it has affected us in the sense that people can’t come together in person , but that we are currently working in home offices but, luckily, our teams are experienced in digitalisation and web-based communication so that we can keep the productivity levels very high.”

The downstream effect of the industry downturn is being felt, however. “The car industry in general is very cautious at the moment, so capital expenditure is on hold and also AVL – as one player in the industry – has changed over to short-term work,” Kürschner explains. “As a technology and engineering provider we are dependent on the automotive industry reopening, and we will continue to provide our technological expertise as best as possible, trying to overcome all hurdles resulting from the crisis.”

 

Addressing future market demands

Many of the challenges the industry is currently facing, already existed before the current crisis, he adds. “The current situation just accelerates the formation of fundamental structural changes within the market. The structural changes basically result from the green trend and because younger generations are demanding greener and more sustainable yet still safe and superior technology. However, they are still willing to spend money for this, so the industry must adapt to these changing circumstances and take measures to understand and accept future market demands.”

This superior technology includes ADAS.

“More and more customers will expect to find ADAS and autonomous driving features within their cars,” says Kürschner. “Moreover, autonomous driving is providing the technical basis for future concepts such as mobility as a service.”

He also mentions the upcoming development of the centralised electronic control unit. “This has a lot of benefits for maintenance and remote updates. It allows the provider to keep the product updated all the time, and will also feature active safety and cybersecurity functions.”

Innovation will continue to play a major role in automotive industry, he believes. “As we had already seen in the e-mobility trend starting over 10 years ago, today, also ADAS and newer trends will cause shifting supply chains, with innovative solutions looking to alter and take over from traditional fields within the industry.”

He takes a positive view of the industry’s future. “Looking at the business perspective, the focus will be on measures over the near term to keep the industry and economy running, which is partially a government responsibility, but also the companies themselves need to sharpen their product portfolio, ready to keep up with the latest customer demands. People will continue to need mobility despite the deep crisis and despite the current uncertainty and therefore, for now I am not concerned that people will stop buying cars. However, in the medium and long term, I would focus on the technologies following the CASE trends in order to maintain our global competitiveness within the future car industry.”

 

 

 

 

Managing Cashflow

Managing Cashflow in a Crisis

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As managers reset the business for recovery, companies need to adopt a lean culture where expenditure is minimised and every cost is questioned.

One of the greatest risks facing many businesses in the current environment is running out of cash. A company that can’t pay its bills, regardless of how profitable it is, will quickly go out of business. Cash conservation is therefore key to survival.

While in the medium to longer term companies will have to look at reengineering their business and operational models in order to meet challenges presented by the post-Covid-19 world, the short term is going to see a focus on cash according to Business Financial Consultant Brendan Binchy.

“There is much more urgency relating to cash now,” he says. “And there are many things a business can do to manage its cash. Almost everyone out there is availing of debt payment deferrals, for example. They are trying to hit the pause button on cash going out wherever they can so that they can preserve the status quo as much as possible. They are also looking at other areas like aged debtors. You almost have to look at it like a company threatened in a pre-receivership condition.”

Binchy recommends a structured approach to cash conservation and this starts with the balance sheet. “The profit and loss account is a record of a business over a period of time, but the balance sheet gives a snapshot of the business at a particular moment in time.”

Companies should pay particular attention to their gearing, he advises. This is the ratio of debt to equity on the balance sheet. “The lower it is the better, but losses will erode equity and increase the gearing ratio,” Binchy continues.

A healthy gearing ratio will allow companies to borrow judiciously in order to bolster their cash position. “This can be very helpful, but companies need to be aware of the associated debt service costs.”

The next step is to look at asset funding, where they may be scope for some reverse engineering. “Businesses frequently purchase assets for cash during good times,” Binchy notes. “They could be re-financed now with bank debt and this will improve the cash position. Generally speaking, the asset lifetime and the funding cycle should be the same. It is important to remember that trade debt, like invoice financing, is for working capital not capital expenditure.”

The sales lead to cash cycle is the next area for examining.

“It takes time for marketing effort to translate into sales leads, buying decisions, billing, and cash collection”, Binchy explains.

 “This can be quite protracted, and companies need to look for ways to get to close sales quickly and speed up invoicing.”

The supply chain should also come in for attention to slow the outward flow of cash. “Companies should identify strategic supplier relationships, tighten stock management overall, improve workflows, and negotiate new arrangements such as stockholding facilities with key suppliers. Talking to key suppliers and developing strategic partnerships is a very good ongoing strategy for companies. The more they do it the better.”

And then there are what Binchy calls the common-sense measures.

“Defer capital expenditure and other spending decisions wherever possible,” he advises. “Companies need to adopt a mean and lean culture where expenditure is minimised, and every cost is questioned. But this must come from the top down and everyone must share the pain and to be seen to share it.” 

Once those actions have been taken, it is time to put together a budget plan. “Having these measures in place means you already have your fingers on the pulse and you can make a budget plan to take you from where the business was before the crisis to what’s likely to happen afterwards. The most important thing about the plan is that it should be iterative. You’re not going to get everything right first time around. The plan gives you a framework to forecast and plan for what might happen. You can adjust it weekly and monthly rather than having to build new plans all the time.”

And businesses don’t have to do this on their own. Binchy recommends the Enterprise Ireland Lean Business Continuity Voucher as a good starting point. This offers eligible companies up to €2,500 in training or advisory services to help them identify and implement the measures needed to ensure they can continue to operate during the Covid-19 pandemic.

There is also the Covid-19 Business Financial Planning Grant, which is worth up to €5,000, and can be used by companies to pay up to 100% of the cost of engaging an approved financial consultant to assist them prepare a financial plan, understand their immediate financial position, manage costs and identify their funding requirement.

When it comes to cash for the business, Binchy points to the Temporary Covid-19 Wage Subsidy which he says has been very helpful to businesses throughout the country.

Sources of working capital and loan finance include the €450 million Covid-19 Working Capital Loan Fund and the €200 million Future Growth Loan Scheme fund available through the Strategic Banking Corporation of Ireland. Businesses which have difficulty accessing bank finance can apply for funding of up to €800,000 from the Enterprise Ireland Sustaining Enterprise Funds. There is also a fund for smaller companies which offers funding of up to €25,000 and €50,000 depending on the size of the business.

 

    Hear from financial expert, Brendan Binchy and Enterprise Ireland’s finance team in our Accessing Liquidity & Managing Cashflow webinar.