Map of EU with padlock

GDPR and Data transfer to or through the UK

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The General Data Protection Regulation (GDPR) came into force on 25 May 2018 and unifies data protection law throughout the EU. It gives individuals control over their personal data and requires businesses and other organisations to put in place processes that protect and safeguard that data. The regulation also addresses the transfer of personal data outside the EU and EEA.

 

Dealing with the UK, USA and other third countries

GDPR came into sharp focus this year as a result of the UK’s withdrawal from the EU. GDPR still applies in the UK, however as it is now a third country it is subject to the GDPR rules governing the transfer of data outside the EU and EEA.

 

Data transfer to/through the UK

The first thing for firms to do is to establish exactly where their data goes. Companies may not realise that their cloud storage provider is actually located in Britain or Northern Ireland. Their pension schemes, payroll, healthcare plans may all be run out of the UK and involve the regular transfer of personal data. Workplace benefits databases could also be held in Britain or Northern Ireland. Even translation services might be covered if personal data is included in the material to be translated.

Having established that data is being transferred to the UK, the next step is to decide if that needs to continue. There may be options to look for another service provider in Ireland or another EU Member State and these should be explored.

Standard Contractual Clauses

If it is not possible or if it is too difficult to take this option, there is a ready solution to hand. There is a tool that can be used to solve this problem and it is available on the Data Protection Commission website. It is known as the standard contractual clauses (SCCs). This is a set of off-the-shelf clauses developed by the European Commission and which are recognised as an appropriate safeguard to ensure that firms remain compliant with GDPR.

The SCCs are already written and only require firms to fill in the blanks with their details. They can be appended to existing contracts and come into force when both parties sign them. Once signed, this enables firms to continue transferring data to the UK in full compliance with GDPR, and people still have their rights.

The data subject is also given certain specific rights under the SCCs even though they are not party to the relevant contract. Firms are also advised to update their privacy statements to indicate that the data is transferring to the UK under the terms of the SCCs.

The SCCs will cover most situations, but there are certain more complex cases where they may not apply. These are relatively rare, but firms in doubt should consult the Data Protection Commission or seek their own legal advice  to check out their particular situation.

There are also certain situations where the data transfer is not covered by contract. These include cases where data is being transferred from a UK Controller to an Irish processor for processing and then transferred back to the Controller. This has been a relatively routine process up until now, as the data remained within the EU at all times. The best advice for firms based in Ireland who find themselves in this situation is to look at the clauses within the SCCs and insert them into the service level agreement governing the activity. This will demonstrate an intention to be GDPR compliant in the new situation.

The same will apply to Irish shared services centres carrying out global back and middle office functions for multinational parents. They should update the terms of service to UK-based affiliates to include the SCCs.

 

Data Protection Policies

Some very large organisations use what are known as Binding Corporate Rules (BCRs). These are legally binding internal codes of conduct operating within a multinational group, which applies to transfers of personal data from the group’s EEA entities to the group’s non-EEA entities. The approval of BCRs can take a significant period of time and also, given the cost and complexity of BCRs, they are not a suitable transfer tool for most Irish companies.

The only remaining questions for Irish firms transferring data to the UK concern adequacy. Certain ‘third countries’, such as Japan, have received what is known as an ‘adequacy decision’ from the European Commission. This allows a cross-border personal data transfer from the EU to that country because it has been determined to have an adequate level of data protection safeguards compared to the EU. It could take some time before the European Commission completes its negotiations with the UK Government in order to deem the UK adequate as a jurisdiction to which data can be transferred under GDPR. Therefore, companies need to explore the options available to them when transferring data to the UK.

Irish companies banking United States

How to manage US banking, employees and legal fees

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Two challenges that Irish companies sometimes experience when preparing to export to the United States for the first time involve banking and employment. The following pointers will help you to prepare.

Download the full Going Global USA: Learn your Legals guide now.

All US banks require an Employer Identification Number (EIN) confirmation letter, also known as Form SS4, before opening a business account in your company’s name.

 

How to apply for an Employer Identification Number

You can apply for an EIN online on the Internal Revenue Services website, if you already have a US social security number (SSN), or an individual taxpayer identification number (ITIN).

If you don’t have an SSN, you can apply for an EIN from the IRS by fax or have a lawyer act as a ‘third-party designee’ to prepare and process an EIN application on your behalf.

 

If you have an EIN

Some banks will accept a copy of a fax from the IRS assigning your business entity with an EIN. Others will need to see the EIN verification letter sent by the IRS, which can take weeks to arrive.

Most banks will also require a copy of the company’s formation documents – US business address and annual statement of officers and directors.

To comply with mandatory anti-money laundering legislation, US banks need to verify the identity of those opening business accounts under Know Your Customer (KYC) rules. There are several ways the requirement can be met:

  • Get a visitor visa to travel to the US and personally open an account at your bank of choice
  • Use third-party services to help you set up an account
  • Some banks will set up an account without the relevant corporate officer being in the United States. If acting on a referral from a legal representative, the process can be completed via email.

 

Employment considerations

Irish companies should carefully plan their approach to hiring personnel in the US as there are a number of potential pitfalls to be aware of. For example, if you hire someone as a consultant or independent contractor, it could later be determined that they are actually an employee under US law. Improper classification risks exposing a company to penalties and liabilities, including the withholding of taxes, benefits, and the possibility of being sued by the employee.

Laws governing US employment and benefits are complicated, which makes it vital for potential exporters to seek the advice of legal professionals.

As US benefits packages vary widely and differ significantly from those in Ireland, companies should seek advice on what employees in specific roles are likely to expect when considering a job offer.

 

Legal costs

For small companies using a lawyer or legal service provider for help with company formation and setting up, fixed fee packages in the range US$3,000 to US$5,000 are available. Packages usually include general counsel, registration fees, and the creation of incorporation, confidentiality agreements and stock issuance.

In general, you can expect to pay additional fees for operating and shareholder agreements, as they can be highly complex. While legal assistance with IP transfers can also be costly due to complexity, many Irish companies keep IP rights within the Irish parent, with the US entity established as a servicing company.

 

Access more insights on doing business in the US.

Appetite for growth in Asia will serve food and drink exporters well

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Asia’s appetite is growing, and its 4.5 billion inhabitants are increasingly turning to imported food for satisfaction.

While far from an untapped market, Asia remains full of potential for Irish food and drink exporters, who can innovate and supply nutritionally healthy and sustainable produce for its growing market of increasingly affluent consumers.

A marked rise in the proportion of Irish food and drink exports going to international markets outside Europe has been a prominent trend in recent years.

 

Impressive export growth to Asia

Asia accounts for one third of Irish food and drink exports, compared to less than 20% just 10 years ago. Exports to China alone have trebled in the last five years, from just over €450 million to €1.4 billion. Population growth and an emerging middle class with increased spending power are driving this growth, especially through dairy and for formula-based products. 

 However, Mary Ledman, Global Dairy Strategist for Rabobank, explains: “The gap between dairy production and imports in Asia will rise to about 20 million tonnes by 2025, and somebody has got to fill that gap.

“Chinese cheese imports topped 100,000 tonnes for the first time in 2017. The Asian Five – the Philippines, Indonesia, Malaysia, Thailand and Vietnam – also hit the 100,000 tonnes of cheese targets. Japan and Korea together account for 340,000 tonnes.

“Asian Five demand is increasing at about 10% annually, China’s by about 20%, and Japan and Korea being more mature markets are growing by 2%.

“China’s dairy imports from Ireland have grown 31% over the past five years – three times faster than China’s total dairy imports. Infant formula exports from Ireland to China have been key to this growth. Last year, Ireland’s market share in China for infant formula was 13%, compared to 5% in 2012. 

“The role of dairy since the abolition of quotas in 2015 has magnified the potential for Ireland going forward. There are ambitions to grow dairy sector exports to Asian markets by 30% to 2020, and Ireland is well positioned to do so.”

 

Ireland’s vibrant food and drink sector

Ireland’s food and drink industry is indeed vibrant. Eight years of consecutive growth have increased the value of global exports 60% to €12.6 billion. Bord Bia has identified 15 markets globally with the greatest potential for significant growth for Irish food and drink industry. Within dairy, seven of those 15 markets are in Asia. Within meat, eight of them are in Asia. Within seafood, seven are in Asia. No matter what way we look at it, Asia offers significant potential for the Irish food and drink industry.

Owen Brennan, chairman of Devenish Nutrition, which manufactures and exports innovative nutritional products and solutions for the feed industry, believes that the trend towards increased sustainability will continue to grow in importance.

 Brennan said: “Focusing on the future of food and agriculture, it’s pretty obvious to say that it must be sustainable if there is to be a future – and innovation is key to developing that sustainable position.

“Looking at the trends as they apply in Asia, there also has to be integrity. Products need to say precisely what they do. They need to do precisely what they say.

“There’s huge interest in the role good quality food plays in promoting good health in these markets, some of which are very sophisticated.”

 A strong focus on health, nutrition, innovation and sustainability are a recipe for success for Irish food and drink exporters looking to capitalise on growing opportunities in Asia.

 

Learn how Enterprise Ireland supports companies to enter the Asian market: China, Singapore, Vietnam, Japan, Hong Kong, South Korea and Malaysia.

Languages Connect logo

The importance of multilingualism

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The drive for new markets shines a light on the importance of multilingualism. Julie Sinnamon, CEO Enterprise Ireland outlines why language matters.

Ireland’s small, open economy depends heavily on being able to trade internationally. The global dominance of the English language has worked to our advantage but with Irish companies looking to export into even more diverse markets, the need to acquire more languages has never been more important.

Recognising the cultural value of communicating in the buyer’s local language and developing a workforce with foreign language expertise can improve relationships and increase efficiency when entering new markets.

Learn how Enterprise Ireland can support your business with the Market Discovery Fund

 

Nuritas uses cutting-edge technology to find new ways of fighting disease

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“Nuritas is addressing the world’s growing healthcare needs through bioactive peptide discovery, fuelled by its proprietary AI platform that operates with industry-leading speed and accuracy.”

Nuritas CEO, Emmet Browne

Key Takeouts:

  • Nuritas is harnessing the power of AI to discover peptide-based therapies for global unmet medical needs with unprecendented speed and success rates.
  • One of the company’s products is currently undergoing human clinical trials to test its ability to prevent the onset of diabetes.
  • Founded by Dr. Nora Khaldi, the company has attracted numerous multinational partners including BASF and Nestlé.

Case Study: Nuritas

Nuritas, a company supported by Enterprise Ireland’s High Potential Start-Ups (HPSU) unit, harnesses the power of artificial intelligence (AI) to mine the data within food sources to identify and unlock bioactive peptides with the potential to prevent and treat disease. The company’s proprietary AI-based drug discovery platform operates with industry-leading speed and accuracy to address the world’s growing healthcare needs.

Traditional drug discovery (within the pharmaceutical or consumer health industries) is becoming ever more costly with the chances of success decreasing yearly. Alternatively, Nuritas begins its process by identifying a target condition that currently lacks safe and effective treatment options. Nuritas works best in a truly collaborative partnership with companies that have a clearly identified medical need and a need to rapidly accelerate the identification of a novel treatment or preventative action.

CEO Emmet Browne explains, “Our platform is rooted in three key steps: target, predict and unlock. We start by targeting an unmet medical need, often identifying conditions that may currently be deemed undruggable. Our proprietary AI platform intelligently mines the dormant peptides that exist in safe, plant-based food sources. These possess extraordinary potential to elicit a positive clinical effect on the targeted condition. Our in-house wet lab then unlocks the peptides from the source protein and fully characterises the activity profile of the peptide to validate its activity. This data is fed back into the AI platform, making it smarter and continually improving the already unparalleled accuracy and success rate of our peptide discovery platform.”

 

Stopping disease in its tracks

One of the company’s most exciting developments is the discovery of a peptide for the prevention of diabetes. The peptide has the potential to maintain blood sugar levels and prevent the onset of the condition. The drug-candidate is currently undergoing clinical trials to evaluate safety and efficacy in pre-diabetes.

CFO Greg Stafford said, “Diabetes is a massive global epidemic, with more than 400 million people suffering from the condition. We have the potential to make an extraordinary impact on the incidence of diabetes as Nuritas has identified and unlocked bioactive peptides with the potential to prevent this condition. We are honoured to have received a multimillion euro Horizon 2020 grant from the European Commission to support the development and commercialization of the product.”

Inspiring leader

Nora Khaldi, Ph.D. is the founder and Chief Scientific Officer of Nuritas. Dr. Khaldi founded the company in 2014, with a vision to apply her background in mathematics, computational biology, microbiology and bioinformatics to help solve some of the greatest challenges in human health. Since launching in 2014, Nuritas has grown rapidly and received multiple awards including the Innovation Award at the Forbes Reinventing America Summit in 2015, recognising the global impact that Nuritas’s technology will have on the future of food and health. In 2017, Dr. Khaldi was named Woman of the Decade in Business and Leadership at the Women Economic Forum (WEF) European Union Event and received the Rising Star prize from the Tech Excellence Awards.

At the core of Nuritas’s objectives is engagement in truly collaborative partnerships. The company combines the strength of a partner’s disease space expertise with Nuritas’s strength in peptide discovery, leading to phenomenal success in the development of effective therapies. Among the company’s ongoing partnerships are BASF, the world’s largest chemical company, and Nestlé, the world’s largest player in the food and beverage industry.

 

“We provide meaningful value to the organisations we work with due to the nature of our approach. We are able to identify and develop bioactive peptides for any target or indication based on the needs of our partners in the pharmaceutical, consumer healthcare and linked industries. The companies we partner with have global reach, possessing the ability to get our products to the consumers and patients who need them most across the globe.” said Browne.

 

Invaluable guidance from Enterprise Ireland

Enterprise Ireland supported Nuritas in its Seed and Series A funding rounds. Browne said, “Enterprise Ireland’s investment was not just limited to their financial support. The organisation cares about our business and is committed to the advancement of our technologies. Since Enterprise Ireland’s involvement, they have been part of our progress as our AI-based peptide discovery platform now operates with a 66%+ success rate and is continuing to improve.”

Mr. Stafford said, “We are delighted to have the support of a globally respected organisation. Enterprise Ireland’s involvement is a testament to the promise of our AI-based discovery platform and the organisation’s involvement has been instrumental as we advance our technology.”

The company has just opened an office in Cambridge in the UK and has plans to open one in an East Coast US location in the coming months. Browne commented, “There are key centres for us around the world where we are already deeply active. These would include the US, Europe, and Asia Pacific, specifically Japan and China. We look forward to continued and accelerated growth as we expand our reach around the globe.”

 

Reaching globally from Ireland

Nuritas currently has a wet lab in UCD and an office near Pearse Station in Dublin city centre; but, the company is combining the two in a new facility on Dawson St. Browne said, “Combining our lab and offices into a single facility in the heart of Dublin is a very deliberate decision. The synergy of our AI platform and in-house wet lab is what makes Nuritas’s approach to drug discovery unique. Being able to join the multidisciplinary teams in the same physical space will only add to the success and accomplishments of our highly talented scientists. In addition, with space for 150 employees, we now have the space to grow our team. A space in the city center will allow for a workplace that is as vibrant and stimulating as the Nuritas team.”

Stafford added, “Companies such as Nuritas are a testament to an environment that provides for growth and innovation. Ireland at present is a hub for companies with ground-breaking technologies, and we intend to remain proudly rooted in Ireland as we emerge as a serious contributor on a global level in discovering life-changing solutions for the world’s growing healthcare needs.”

 

Learn more about Enterprise Ireland’s Innovation supports here.

Irish Dog Foods learns new market research tricks to target export growth

 Irish Dog Foods learns new market research tricks to target export growth

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When Irish Dog Foods needed to learn more about the relationship between man and his best friend, their first port of call was the Enterprise Ireland Market Research Centre.

The award-winning manufacturer has worked with Enterprise Ireland to develop innovative new product ranges for export during a relationship spanning more than 10 years – but the partnership has stepped up a level in the last two years.

Marketing Manager, Darren Keating explains: “Irish Dog Foods has used the Market Research Centre for every new market we’ve entered in the past two years – Portugal, Germany, Korea and Spain.

Excellent access to information

“The access to information they provide you with is excellent. They give you the tools and facilities to be better prepared when you move into new markets. As a company, you learn and benefit from the process of working with the Market Research Centre.

“We might be having a conversation internally about whether to put some effort into Poland or Denmark. At that point, we have some key questions to ask, such as what is the size of the market, who are the big players, is it dominated by retailers, is it dominated by pet stores, is it dominated by brands, or by private labels?

“One of the best avenues we would use to answer these questions would be the reports which are available at the Market Research Centre. They can give us access to data by company, sector, market and general country information. We still have to clean the data, but we wouldn’t be able to do it as professionally, quickly or as comprehensively without the facilities that the Market Research Centre provides.”

Knowledge it takes to break new markets

After more than 25 years in business and with around 50 exports markets globally, Naas-based Irish Dog Foods is one of the most recognisable names in pet food retail across the globe. However, this old dog is always keen to learn new tricks when it comes to breaking in to new international markets.

Darren explains: “When we launched in South Korea this year it was the result of 26 months of planning and preparation.

“One of the things we learned during our market research is that almost all the dogs are small – there are practically no large dogs in Korea because it’s mostly large population centres with apartment living. That meant we specifically targeted the owners of small dogs.

“We also learned that the average spend on pet food was very high in Korea, so we were able to target our very high-quality foods at the buyers and retailers. That information came from reports provided by the Market Research Centre. It meant that when we were making our pitches, we were knowledgeable, we were experienced, we knew what we were doing, and it was impressive in terms of the buyer listening to us.

“The impression the buyers got was, ‘these guys know what they’re doing. They’re not just throwing everything on the table, they have an understanding of what will work in my market. It wasn’t the reason why we got the business, but it was a big help and it did make our pitches more professional.”

New markets can be big revenue drivers

The new markets Irish Dog Foods has moved into recently are expected to become significant revenue drivers over the next five years, and the company plans to continue its work with the Market Research Centre.

Darren says: “Recently, we started thinking about targeting the Polish market. We want to know things like, what’s the percentage of dog-owning households, what’s the dog population, what is a consumption of dog food – and what about dry food versus wet food? We can get that information in reports from the Market Research Centre and it helps us really get into the detail of the dog food category in Poland.

“We can also use them for lead generation. Who are the top 20 retailers in Poland? Can I get a database of all the pet distributors in Poland? If we get 200 leads and there are 50 targetable leads after cleaning, then that’s a good start.”

“The Market Research Centre doesn’t do our work for us, but it does provide the material
for us to do our work – and that makes the process much easier.”

Learn more about Enterprise Ireland’s Market Diversification supports here.

 

How investing in growth paid off for SF Engineering

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Visit almost any leading food company around the world and you are quite likely to find production line technology supplied by Irish firm SF Engineering.

Since its establishment in 1983, SF Engineering has been responsible for more than €250 million worth of food processing projects in 63 countries across Europe, North and South America, Russia, the Middle East, and Australia.

Central to the company’s success during that time has been its commitment to innovation and unwavering customer focus.

“We started off in the fish industry,” says CEO and founder, Seamus Farrell. “After that, we moved into the red meat sector and the broader food industry. This wasn’t part of a grand plan. It sort of happened accidently.”

It was a natural evolution, however, given the impact the company had already had on the fish sector. “What we did for the fish industry was futuristic,” he says. “At the time, it cost around €25 per tonne to process fish. We reduced that price to €4 per tonne by automating the process. That was our first big kill and set us up for future growth. After that, we moved into the Scottish and Scandinavian fish sectors – that was quite a natural move for us. We have never been export shy.”

Today, SF Engineering designs, manufactures and installs high-quality food production lines. Specific product lines include conveyors, packing solutions, platforms, weighing equipment, fat analysis, quality control, hygiene equipment, lifting and tipping equipment.

“Our process design expertise enables us to deliver highly efficient food production lines that reduce costs, increase capacity and require less maintenance”, says Farrell. “Our food technology experience covers a range of sectors, including meat, poultry, fish, bakery, dairy, fruit and veg, ready meals and pet food. We are experts in the precision engineering of complex engineering systems for the food sector and we provide a trustworthy support service to our clients who operate around the clock throughout the year.”

Expansion into international markets began in earnest in the late 1990s and this saw the company form a number of key strategic alliances with global partners. “We have formed great partnerships with companies, firstly the main one being Ishida, then following on from that CEIA,  Marelec and Eagle”, says Farrell. “They have been very important to us. They allow us to combine our complementary strengths in different areas to supply turnkey solutions to the global food industry.”

These partnerships have been an important source of new business referrals, but the company is active on international markets winning new orders. “You have to keep driving on,” says Farrell. “We have consistently invested in R&D over the years, with support from Enterprise Ireland and others. Back in 2009, when Irish businesses were severely challenged by the recession, we made a decision to invest in growth.”

That decision saw the acquisition of Opal FPS in St Ives, Cambridgeshire. “That helped us to grow our sales in the UK. It has also Brexit-proofed our business.”

Another key decision around that time was the opening of a new base in Prague, where the company’s Global Installation Team is based. The relationship with the Czech Republic dates back to the late 1990s.

“In the late 1990s and early 2000s we found that we were losing people to the building boom,” says Farrell. “That led to us employing a lot of people from the Czech Republic. We found them to be very good stainless steel fabricators. Without those guys we wouldn’t have been able to expand internationally as quickly as we did. The Global Installation Team is in transit, with all the team travelling around the world from project to project.”

Farrell is grateful to Enterprise Ireland and the other bodies which supported the company in its growth and development over the years. “They believed in the company and supported us, and that was very important.”

He believes export success begets further export success. “Having supplied all these blue chip companies around the world gives us the confidence to go out and win more business,” he says.

“We are also very lucky to come from a country with a very strong food industry, which has travelled well globally and has established a reputation for high quality. Our core values are to be as professional and competitive as possible. We are never going to be the cheapest, but we will add the most value and deliver the best and fastest return on investment to our customers. We are large enough to compete around the world but small enough to be flexible when it comes to delivering solutions for customers. We understand that retailers and consumers want more affordable, safer food on supermarket shelves, and they want very good quality. We provide the solutions that enable our customers to meet that demand.”

These core values have seen SF Engineering expand to employ 110 people in Ireland, the UK and Prague, with business growing strongly year on year. “We will have sales of €20 million this year,” Farrell concludes.

Learn how Enterprise Ireland enables companies to access R&D funding with our innovation supports.

Spotlight on Skills

Skills in the Spotlight for Irish Companies

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Helen McMahon, senior executive for client skills at Enterprise Ireland, describes what Irish companies can gain from focusing on the critical skills required for growth.

With national and international competition for talent heating up, it is becoming increasingly difficult for Irish companies to attract and retain talent, across all functions of their business. Most Irish companies know that their performance and growth could benefit dramatically from access to a skilled workforce.

Many find it more difficult to define the critical skills they need to align with their strategic priorities. Companies can also find it challenging to assess which specific skills could have the greatest impact on the immediate and long-term growth of the business.

Enterprise Ireland has partnered with the Irish Management Institute (IMI) to deliver Spotlight on Skills, a series of one-day workshops that are run regionally and designed to help ensure that each company’s workforce has the capabilities required to support export growth and long-term strategic development.

Spotlight on Skills is supported by the Department of Education and Skills and is designed to help companies to get a response to their needs from national and regional education and training providers.

To date 76 companies, employing 10,012 people, have taken part in the workshops. Outcomes are both immediate and long-term, with the focus falling on identifying critical gaps across the whole company.

Kevin Clarke, General Manager at Green Isle Foods, describes the benefits of the programme for firms. “Our company’s growth and development is clearly impacted by our access to a skilled workforce,” he said. “The Spotlight on Skills workshop supported us to strategically explore the critical skills we need now and into the future for business growth. It helped us to define the actions we need to put in place for staff-resource planning into the future.”

Roisin Johnson, Head of HR at Ammeon, described the programme as “a practical workshop that provided a toolkit of techniques to help us identify our training needs and support the achievement of our strategic goals by building our company and our people’s capabilities. Spotlight on Skills is a straightforward framework that can be brought back into any workplace and used over and over again. We highly recommend the workshop to Irish companies.”

Spotlight on Skills also helps participants to think strategically about how they can attract and retain talent and develop career pathways for existing employees. Opportunities to upskill and reskill an existing workforce are highlighted and actions that can help to attract the talent needed to drive growth are identified. If a company is suffering from the loss of skilled staff who are departing for rival firms for career reasons, developing avenues for progression within the company can be impactful. Creating opportunities for staff to progress their career within the company can also be attractive to new talent.

Embracing opportunities to upskill and reskill existing employees can reduce the time required to onboard new talent to address shortages. The company report developed through Spotlight on Skills may indicate that existing employees could benefit from mentorship, coaching or other development opportunities. Companies are advised about programmes that can help meet skills needs quickly and get an opportunity to influence the development of new programmes to develop a skills pipeline.

In the longer term, Spotlight on Skills will help to bridge the gap between the priorities of Irish enterprise and the curricula of education and training providers. After a company has developed its report, the Spotlight on Skills team can facilitate contact with regional skills managers working for the DES who can help them to engage with education and training providers in their region.

The programme gives companies a strong voice on their needs. As a significant volume of critical skill needs is identified, providers can be encouraged to update their curricula, create programmes and develop additional apprenticeships or more learning opportunities.

This article was originally published in the Sunday Independent.

Local Enterprise heroes

Following in the footsteps of Local Enterprise heroes

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For many companies, becoming an Enterprise Ireland client is a significant step on a journey that started at a regional level. Local Enterprise Offices throughout Ireland provide supports, advice and training to start-up companies and existing micro-enterprises of up to ten employees. It is in this environment that experience is gained and vital lessons are learned which allow companies to prepare for growth and to take their ambition global.

A recipe for successful growth to €21 million annual turnover

It was in 1993 that a young man from Clonakilty got in touch with his Local Enterprise Office (LEO) in West Cork to ask if they could help him turn his business idea into a reality. Diarmuid O’Sullivan wanted to produce traditional churn-made yogurts. He knew how to make yogurts but he didn’t have enough funding to get the venture off the ground.

“I had the idea but not enough money,” Diarmuid recalls. “I heard there was funding available from the Local Enterprise Office, so I contacted them and put in an application. The maximum support they could provide at the time was £50,000 and the LEO in Clonakilty was able to help me put my ideas into a business plan to help secure funding.

“I also received quite a lot of mentoring and coaching. That was all done at concept stage – I hadn’t even identified a production site – but the support meant that I was able to get Irish Yogurts up and running by March 1994.”

Diarmuid’s yogurt-making idea was a recipe for success. His company grew quickly and its products were soon on the shelves of Irish food shops and supermarkets.

“In one of those early years, we grew by about 78.5%. That brought its own challenges, with regard to working capital. The Local Enterprise Office suggested that I move onto Enterprise Ireland, where there were financial supports for fast-growing companies which were creating jobs.

“We hadn’t really focused on exports, not at that stage. That came after we started working with Enterprise Ireland. Our first export customer in the UK was Tesco.”

This progress was recognised in 1998, when Irish Yogurts was named winner of Ireland’s first ever National Enterprise Award. In just a few years, it had gone from being a bright idea with insufficient funding to becoming an award-winning food producer.

Today, Irish Yogurts employs 160 people at its Clonakilty base and sells to every major supermarket chain in the UK and Ireland. Its annual turnover has grown from €300,000 to €21 million, with exports accounting for 30% of their business.

“We appreciate the input of the Local Enterprise Office and Enterprise Ireland, who supported us and our staff every step of the way,” Diarmuid says. “We still work with them and avail of supports and advice. Enterprise Ireland is very much a part of our team.”

A roll of honour

Irish Yogurts is one of hundreds of companies from every corner of Ireland that have transferred from Local Enterprise Office support to become Enterprise Ireland clients. Last year, 80 companies made the move. In 2016, the figure was 40. The roll of honour includes 10 other former winners of the National Enterprise Awards:

It is a track record that the Local Enterprise Offices are proud of. Oisín Geoghegan, chair of the network of Local Enterprise Offices, said, “It’s one of our targets to transfer companies to Enterprise Ireland – it’s progression. Companies which transfer into Enterprise Ireland are companies with growth ambitions to be exporting and creating jobs, which is incredibly important, particularly for the regions. So we would see it as an indicator of success when a company moves on to Enterprise Ireland.”

Local expertise supporting global ambition

Engineering services provider Obelisk engaged with their Local Enterprise Office in Cavan, even before they set up the company in 1996. Four years later, Obelisk won the National Enterprise Award.

Founder director Colm Murphy said, “We were looking to capitalise on the growth of mobile phone usage by offering installation services for operators. The people in our LEO understood the idea that opportunity was coming down the track. That gave us the confidence that our idea was good and could to grow into something big.

“They had an incubator office which we were able to rent and provided grant aid for early employees. They also provided us with advice about how to set up a company, and other supports such as training and mentoring – there was a lot more to it than financial support.”

The support has been paying off ever since, Colm says. “Last year we turned over €27 million. Employee numbers are between 250 and 300 people. We’ve expanded to include infrastructure solutions for fixed telecoms and the energy sector in Ireland, the UK, and South Africa.

“We want to continue growing. We’re looking for further investment. Over the next two to three years, we’re looking to hit the €100 million mark in sales. Exports are currently a third of our turnover but we expect that to become a 50/50 split.”

So what part did being able to access business expertise and support at a local level play in the company’s success? “Back in 1996-97, we would have found it difficult to kick-off from a zero base,” Colm explains. “We were just a couple of guys with an idea, and sometimes going for funding and that kind of stuff can be daunting. But when you get the kind of support that we did from the Local Enterprise Office, that’s a massive kick start.

“I would recommend that any company should be in touch with their Local Enterprise Office. They’ve always been good at describing the product set they have and how they support you. If you don’t ask, you don’t get and if you’re not engaging with them then you won’t necessarily be aware of new supports that are on offer.”

Reassurance and support

The view that “if you don’t ask then you won’t get” is shared by John Lynch, Chief Technology Officer of Acutrace. The Dublin tech company provides software and hardware which allows companies to control and monitor their energy usage. They count the likes of Google, Twitter and IBM among their customers.

Founded in 2015, Acutrace wasted no time in contacting their Local Enterprise Office in South Dublin. John says, “We reached out to the Local Enterprise Office immediately and they were brilliant. They gave us an employment grants and we managed to employ two engineers under that scheme. Within the first three months, we were exporting to London.

The company was growing quickly and the Local Enterprise Office was instrumental in steering Acutrace towards Enterprise Ireland’s High Potential Start-up (HPSU) programme.

John says, “Once we learned the criteria for the HPSU, we used that as our yardstick to reach for. We knew we had to have significant exports, we knew we had to have a scalable product that would generate employment and we needed to have the magic number of a turnover of €1 million, so it was a good objective to hit and we exceeded the target that year.

“By the end of 2016, we had turned over more than €1.5 million and we were exporting 40% of a product that was created in Ireland to the UK.”

The advice, professional support and reassurance they received has left a lasting impression on John and Acutrace.

He says, “I’m coming off the back of 20 years in the industry and so is my business partner Aidan, but it’s a little bit different when it’s your own enterprise – the risks are higher and there’s an isolation you feel, it can be profound. Then you engage with your Local Enterprise Office and you feel part of something, that you’re being protected or mentored.

“There’s funding and that’s important, but it’s also having that extra bit of confidence that there’s someone else behind you who has your back, that if you are going to create employment, well there’s someone there who’s grateful for that and they’re helping you, and they’re encouraging you.”

“You might be destined for Enterprise Ireland but until you hit that criteria the LEOs will mentor you and steer you in the right direction.”

Working hand in hand

That direction involves advice and supports, which evolve and change to meet the needs of encouraging start-up companies and other micro enterprises of ten or fewer employees, says Oisín Geoghegan.

“We provide a very broad range of supports – initial business advice, information and guidance, training and mentoring, and financial supports such as feasibility, priming or expansion grants. It can include money to employ people or towards marketing costs, business development, and so on.

“We also point entrepreneurs and companies in the direction of other supports that are available, such as the New Frontiers incubation programme and Innovation Vouchers from other agencies such as Failte Ireland, Intreo, Bord Bia and Microfinance Ireland.”

“For companies with strong growth ambitions, we work hand in hand with Enterprise Ireland on their journey and ensure that they make that contact at an appropriate stage so their development continues to be supported.”

Egypt

Egypt: the original export market

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Mike Hogan, Manager for Middle East & North Africa at Enterprise Ireland, explains why the world’s oldest export market should be on the horizon of Irish exporters.

In an era in which there is much talk of emerging markets for Irish exporters, Egypt can claim to be one of the oldest, if not the oldest, export markets in the world. The pharaohs of ancient Egypt governed a nation that imported huge quantities of wood, metal and precious stones from neighbouring kingdoms. Today, as throughout history, Egypt is a key geographical gateway with a land connection to the continent of Africa and the Middle East and, through the Suez Canal, the sea lanes of Asia and the Mediterranean.

Ireland’s trading relationship with Egypt is more recent, developing in the 1970s and 1980s with the export of cattle and beef, evolving into a market worth over €100 million for exporters today. Much of this trade collapsed in the aftermath of the Arab Spring and the period of political turmoil that followed. However, with the devaluation of the Egyptian Pound in late 2016, and a sustained period of economic liberalisation, Egypt’s economy rebounded. It is now growing at 5.5%, the fastest in the Arab world. Egypt is attracting renewed interest, with over 30 Enterprise Ireland-supported companies attending a ‘Doing Business in Egypt’ event in Dublin on April 16th. Clearly, there is optimism that Ireland can reclaim lost exports and widen its portfolio into sectors such as food products, ICT, life sciences, education services, travel tech and agritech.

Cork’s Mervue Laboratories are active in the Egyptian animal nutrition market, aiming to double exports over the next three years. Commercial Director, William Twomey, says, “Egypt has massive potential and must be a target market for any serious animal health company. It can also be used as a gateway to surrounding markets, which is very attractive.”

While Irish eyes tend to focus on South Africa and Nigeria as Africa’s biggest economies, Egypt is the continent’s second-largest economy. This status was buoyed by the discovery of the offshore Zohr natural gas ‘superfield’ in 2015. Egypt’s economy should be understood within a wider context. It is a lower middle-income country akin to Vietnam and Indonesia, with a population of over 100 million. Unique in the Middle East, it has a sophisticated industrial base producing white goods, textiles, industrial goods, electronics and components, and an emerging automotive sector that includes among its exports London’s iconic red double-decker buses, but with hybrid engines. Within these sectors lie strong opportunities for Ireland’s industrial sub-supply and services sectors. Openet and Openmind Networks from Ireland’s telecoms cluster already sell to Egyptian mobile operators, and with Egyptians spending USD $6.1 billion per annum on media and recreation, there is scope to expand our digital content solutions.

Egypt maintains a strong position in the fast-growing global halal pharmaceuticals and cosmetics sector. It is the fourth-largest Muslim consumer food market, behind Indonesia, Turkey, and Pakistan. Egypt has already been targeted as a key market for Irish dairy product exports, and the rapid expansion of its retail sector, including large scale shopping malls and the emergence of hyperstore operators such as Carrefour, will potentially generate opportunities for the wider Irish food sector.

Thomas Cook brought its first tourists to Egypt in 1869. The country’s rich cultural heritage and beach resorts contributed a record 19.5% of GDP in 2007. Since then, its tourist sector has suffered shocks, due to terrorist attacks and the downing of a Russian Metrojet airliner in 2015. That triggered the cancellation of flights from key markets such as Russia and the UK. As the security situation stabilises, tourism has started to recover, with revenues jumping 123% in 2017, and higher-spending German and Russian tourists set to return in 2018.  The tourism sector is rife for modernisation, presenting a clear opportunity for the Irish tourism and travel tech cluster to assist Egypt to develop and reposition its product. Enterprise Ireland’s own travel plans include sectoral visits for Irish companies in autumn 2018 with the goal of re-establishing Egypt as an important Irish export destination.

This article was originally published in the Sunday Independent.

If you’re exporting internationally and interested in researching new markets learn more about the Market Discovery Fund.

Record food exports driven by Irish innovation

Record food exports driven by Irish innovation

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Orla Battersby, divisional manager for food at Enterprise Ireland, outlines the factors driving the rapid growth of the country’s largest indigenous sector.

The value of Irish food, drink and horticulture exports increased by 13% in 2017, to reach €12.6 billion, a new record. This stellar performance marked the eighth successive year of growth for Ireland’s largest indigenous sector.

While many factors have played a role in the achievement, chief among them is the ingenuity and innovative capacity of Irish food companies. Successful exporters in this most competitive of sectors must by their nature be innovative. They must be capable of extremely rapid responses to changes in consumer demand, while at the same time remaining capable of meeting the exacting requirements of grocery multiples in relation to price, quality, and new product development.

At its simplest, innovation in food and beverage products is the market-led development of new or improved products to meet changing customer needs. But innovation is actually much more multifaceted than that. It is about embracing a culture throughout the whole business. Innovation means taking a customer-centric approach to all aspects of the company, from who is hired through to technology and processes utilised, the packaging of products and the way they are branded and sold.

Enterprise Ireland supports food and beverage innovation in numerous ways and has assisted approximately 100 significant in-company research, development and innovation projects for clients across the sector since 2013. These projects range from new, more efficient and lower-cost manufacturing processes to product reformulation and new product development, with the aim of breaking into new customer segments and markets.

Among the innovative companies supported by Enterprise Ireland is Keohanes Seafoods of Cork. They realised that many consumers did not like the hassle of preparing and cooking fish and were the first company in Ireland to produce a microwaveable skin film range of products, which means the consumer never has to touch the product. Keohanes used a packaging technology designed for other purposes and it has basically brought fish from the fish counter to the chilled convenience aisle.

Another Cork company, Dairy Concepts, manufactures hand-held nutritious dairy snacks for children, using patented milk casein technology. The key competitive differentiator of its Fruchee product is that it contains 40pc less sugar along with higher calcium, protein and Vitamin D than competitors.

Dublin-based Nuritas, led by Dr Nora Khaldi, is developing technology that combines artificial intelligence and DNA analysis to discover the health benefits of peptides in natural foods and is a great example of a food start-up company that Enterprise Ireland has worked with at feasibility stage and is now supporting to scale.

Large companies in the dairy, beverage and meat processing sectors are also highly innovative, as their export success demonstrates. In fact, the 2017 export performance was driven by a 19% leap in dairy exports to over €4 billion, and a 5% increase in sales of Irish beef. Dairy now accounts for one-third of all food and drink exports, with beef representing one-fifth of all exports at almost €2.5 billion.

There is clear evidence to demonstrate the role innovation has played in this success. Enterprise Ireland carried out a survey in 2016 which showed that firms who availed of innovation supports from us reported an average 67% growth in global sales.

These supports take many forms. The Agile Innovation Fund gives companies support of up to 50% of eligible project expenditure up to €300,000, which is very useful for projects which must happen rapidly. The approval process is fast tracked, enabling companies to get projects delivered quickly. In addition to in-company R&D, Enterprise Ireland also supports companies in collaborative innovation projects, helping them to access the insights of researchers working across Ireland’s third-level sector, and European expertise and funding under the EU Horizon 2020 programme.

But we cannot allow ourselves to become complacent when it comes to innovation. Food companies throughout Europe and beyond are competing for the same markets, while Brexit will create new challenges for Irish companies. A continued laser-like focus on innovation will be required in order to maintain and add to our success on international markets.

This article was originally published in the Sunday Independent.

US flag - exporting to the US

Top 10 Tips for Exporting to The USA

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Ireland enjoys a unique advantage in trading with the US because of our deep historical links. Relations between the two governments are exceptional; and cooperation at an institutional level is excellent including in areas such as research, innovation and education.

There is, without doubt, huge opportunity in the US. Around 700 Enterprise Ireland client companies are exporting there and companies like Aerogen, Fenergo, Cylon Controls, Candidate Manager and Rubicoin have set up offices and accelerated exports in the past 24 months. To date, over 20 clients have won contracts worth over €500,000.

1. Preparation

Before entering the US market, extensive research at home is strongly advised. Make contact with State agencies, relevant support organisations and companies who currently export to the US, if possible. Targeting the US usually requires additional financial and human resources, so to keep costs and operations manageable in such as geographically big country, first-time entrants are advised to segment the market and target a particular region or state. Give careful consideration to the resources needed to serve the selected market, for instance, will the operation use a direct or indirect sales channel. Some companies hire locally and others (often in the early stages) put a C-level member of the team in the market for a short period to get things off the ground.

2. Legal

Corporate – Confirm your corporate structure. Typically setting up a US subsidiary makes sense both for tax and liability reasons. Your US subsidiary also will need to appoint a registered agent, and “qualify to do business” in every state in which you have an office or similar presence.

Intellectual Property – Address US trademark issues defensively (confirming that no one else has prior registered or unregistered rights in respect of name and key brands); and offensively (by filing a US trademark application). Patent issues may need addressed depending on the business.

Contractual Terms and Conditions – These must be converted to the laws of a US state, for legal and commercial reasons.

Employment – Get professional employment advice locally. Most US employees do not have employment contracts but employers are bound by offer-letter terms, employee manuals and other undertakings. Also, ensure confidentiality and IP assignment agreements with all employees are established.

3. Tax Structuring and Compliance

Establish appropriate arm’s-length arrangements between the Irish parent and US subsidiary to separate taxable income. This is particularly important because US corporate tax rates (federal and state), totalling about 40% are typically three times the level in Ireland. Have appropriate compliance procedures in place to address federal and state corporate income tax, as well as other potentially relevant tax regimes (sales tax, personal property tax, etc.), particularly at the state and local level.

4. Trends

US import trends indicate high potential for Irish exporters. Meat imports were valued at €9.4bn which was the second fastest-growing import; while dairy went up over 40% to €2.8 billion. The US also imports pharmaceuticals worth $86.1 billion; medical and technical equipment worth $78.3 billion and organic chemicals worth $52.1 billion. These are all among the top 10 Irish exports by category. It is also a big importer in sectors such as aviation and aerospace, mechanical and electronic equipment, insurance and ICT services – all of which are growing in Ireland.

5. Banking

It can be difficult for a non-US company to set up banking for its US subsidiary. Some banks are particularly focused on banking high-growth companies on a trans-Atlantic basis, which can help ease the process.

6. Immigration

Most Irish companies exporting to the US find it critical to establish a presence in the market. This is particularly true in software and high-tech. An estimated 65% of Irish exporters to the US have a full-time presence, ranging from a single-person sales office to manufacturing operations with thousands of employees. Route-to-market decisions are crucial and the role of agents and distributors cannot be ignored. Buyers rarely purchase directly from manufacturers, particularly those from overseas. So fulfilment centres have become increasingly important in the supply-chain, especially since the growth of e-business. This approach is better suited to non-perishable items and consumer products.

7. Insurance

The US is a high-risk environment. Get an insurance broker with trans-Atlantic experience to advise on types of cover, terms and limits.

8. Recruitment

The most difficult aspect of setting up in the US is finding the right people. Obtaining recommendations from trusted people including investors and advisors is often the best way. Otherwise get professional support (especially with sales people). Consider outsourcing for book-keeping, employee tax withholding, HR and mandatory employee insurance and benefits, and similar matters. Also note that visas permitting Irish personnel deployed in the US to work are needed. Allow three to four months to sort this out.

9. Offices

Get professional advice on office space and other properties such as co-working spaces (like WeWork), accommodation offices (like Regus) or renting an individual premises.

10. Incentives and Supports

US supports should not be overlooked. Federal, state and local development agencies and international chambers of commerce can provide very useful support. State and local incentives for investment and job creation also may be available.