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Dairy giant Ornua 'confident' in Kerrygold brand despite rival's arrival in Germany

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Ornua chief executive John Jordan

Ornua chief executive John Jordan

Ornua chief executive John Jordan

Dairy giant Ornua has said it is "very confident" in its Kerrygold brand as it faces increased competition in Germany from Irish rival Kerry Group.

Kerrygold is the number one butter brand in Germany.

Last July Kerry Group, headed by chief executive Edmond Scanlon, launched its Dairygold butter in Germany, in competition with, among others, Ornua's Kerrygold.

However, Ornua says it is ready to take on competition.

"We are used to facing competition, the success of Kerrygold has put us in an incredibly strong position," John Jordan, chief executive of Ornua said.

"When other companies try follow us in it is a compliment to the work we have done, but ultimately it's about consumers and they love what Kerrygold stands for.

"So we are very confident in our brand, our quality that we can take on any competition and win."

In 2019 sales of Kerrygold exceeded €1bn globally as it grew its market share in key strategic areas of Germany and the United States. Last October, the US imposed 25% tariffs on goods including butter amid rising US and European trade tensions.

In response to the tariff, Ornua - which employs 2,400 in 13 factories around the world - put through the additional cost as a price increase on its butter. But it says that while it was "very disappointed" by the decision to impose tariffs, to date it has not experienced any fall in demand for Kerrygold in the US.

Belfast Telegraph