One Page Summary

Alpha Omega Consultants recognises, through almost 20 years working in the food industry, that distribution of food is one of the biggest challenges facing producers, whether start-up or established businesses. Growing or making the food itself is usually the the easy bit for most artisan producers. They turn a hobby or something they love into a business. Scaling up, developing Routes to Market, labour, costs and pricing can all be challenging. Distribution, however, is a significant issue and one that can inhibit growth.

In her book “Money for Jam – the Essential Guide to Starting Your Own Small Food Business”, Oonagh Monahan recognises that managing distribution is what makes the difference between remaining local or growing regionally or nationally. Understanding the market and the supply chain all impact on distribution needs, as does the nature of the food, whether fresh, frozen or ambient. Distribution comes at a cost, and so most producers do the distribution themselves initially, perhaps having to invest in a refrigerated vehicle, before either hiring a driver or finding a distributor. Options include “wheels only” couriers who pick up and drop off, wholesalers and others who may offer merchandising services. Distribution is hard work, and while it may be a good way to develop relationships with retailers, it must be recognised as a job in itself. What is essential, and often overlooked, is the need build this cost into pricing from the beginning.

When delivering products, producers must manage a mixture of direct / back door deliveries to shops with or without merchandising, and centralized warehouse delivery for some supermarkets as well as a combination of self delivery and using distributors, wholesalers and couriers. Some distributors offer a door-to-door service (“wheels-only”) while other offer merchandising as an extra. Bord Bia promotes “co-opetition”, a model which emanated from the Harvard Business School and describes “co-operation among competing companies who make a decision to work together un specified areas. In many cases, such collaboration starts by focusing on areas such as joint sourcing, setting industry standards, or developing product platforms that expand the range of markets served ”.

Distribution is an element of food production where co-opetition could work well, with the trust and buy-in from the producers. In the simplest terms, producers would distribute each others’ produce so that two or more producers are not driving the same routes to the same retailers in the same week. There have been several reports recommending that co-operative distribution models should be implemented , but none has been trialled in any great degree in this region to date. It is development of such a model in Roscommon that it the focus of this project and our response.

Roscommon has established a strong reputation as a food producing and a food festival venue. The Taste of the Lakelands, (which was run in collaboration with Longford LEO, Failte Ireland and the EPA Greening the Festival initiative) attracted 6,000 people and a further fair in 2017 attracted 8,500 people. The annual Roscommon Lamb Festival is now in its 11 year. The recent launch of the Hidden Heartlands by Failte Ireland mentions The Druminilra Farm Kitchen in Boyle specifically and there is likely to be growth in tourism as a result of this initiative. Roscommon LEO and Westbic are keen to explore all opportunities for food sector development focussing on the challenge of distribution, as they consider that a central location in Roscommon with its available space, human resources and interest in food development, make it an ideal place to develop a food hub. To date, up to twenty food producers have expressed an interest in developing a cooperative food distribution model in a bid to grow and expand their businesses.

The overall strategy then is to deliver a Pilot Study which comes from an awareness of changing needs and the particular distribution challenges which face food businesses in the region. Food producers will be enabled to respond to these challenges and be a part of the solution. Businesses require assistance in understanding how to make best use of their resources, in developing their services and operations. As a result, their business will be more efficient, profitable and more attractive to customers. In doing so, with the support of Roscommon LEO and Westbic, food businesses can make a significant contribution to the broader development of the area. 

It is important to remember - this is not just a matter of sharing the driving, its about developing a network, relationships and providing an innovative solution that is meaningfully unique and beneficial to all the stakeholders.