European Eonomis: Report Regarding the Potiential of Lily O’brien’s Chocolates to Expand Its Operations Into Eu Markets

Topics: European Union, United Kingdom, Treaty of Lisbon Pages: 9 (2627 words) Published: March 24, 2011
European Economics
Beverley Burgess

Report Regarding the Potiential of Lily O’Brien’s Chocolates to Expand its Operations into EU Markets

Mary Ann O’Brien started making chocolates in her kitchen in 1992 with two pans and a wooden spoon. The only helper she had was her l baby girl, Lily, who became later on with the success of her chocolates the company's name and chief taster. In Co Kildare, they have developed a mouth-watering repertoire of delicious chocolates using the finest ingredients. These chocolates have been created from the passion and pleasure of the makers of these delicious chocolates.

Task 1
Analyse the Potential held by EU markets for Lily O’Brien Chocolates.

Since starting the company in 1992, Lily O’Brien’s chocolates have created quite a success story nationwide and have a highly recognised name of producing quality chocolates for every chocolate lover whatever the occasion.

The company hold’s fort in a state of the art 36,000 square foot facility in Newbridge, Co Kildare. There are 100 full time employees employed and the production rate is between 50 and 65 tonnes of chocolate per week.

Lily O’Brien’s has built up a reputation of being one of the most innovative and highest quality brands in the luxury chocolate market to date.

This is a small summary of how the company has developed since 1992.

Lily O’Brien’s chocolates is the most dominant player in the Irish luxury chocolate market and is one of Irelands most successful food exporters. It is one of the world’s leading suppliers to the airline industry that supplies over 11 million Lily O’Brien’s branded chocolates that are being offered on 1st and business class services across the globe.

Lily O’Brien’s have without much marketing investment in the UK, have grown the brand to 7th in the premium UK chocolate confectionary market.

Lily O’Brien’s is also the leading private label supplier to top retail players in the United States, United Kingdom and Ireland, having 28% of their turnover accounted though private label activities.

Between 70-80% of their turnover is generated through exports, their main export markets are the UK and USA.

Some of their International Customers include,
Export Retail
·Trader Joes

Travel Retail
·US Airways
·South African
·Air India
·Virgin Atlantic
·Jury’s Doyle Hotels

Given the facts of how Lily O’Brien have taken the luxury chocolate market by storm here and are creating 70-80% of their turnover through exports. I see a strong potential held for EU markets for Lily O’Brien’s chocolates.

When a company is assessing EU markets, the company should take account of the general trend of the EU market towards steady growth. Demand for sweet products is generally growing in supermarkets, hotels, restraints and coffee shops in the European Union. Higher sales may be brought in, in countries such as the UK, USA and Ireland ( the countries who have already brought in the majority of Lily O’Brien’s profit) other continental markets where tastes that differ may not accept the luxury of Lily O’Brien’s chocolate if the country’s main chocolate supplier ie uses a higher percentage of coca beans in the chocolate, foreign chocolate may seem not as satisfactory to the people as it may not be what they are used to.

Lily O’Brien’s could get new distribution channels that operate in the EU such as LIDL and ALDI, they could also supply leading hotelier The Marriott that operates in various EU countries. They could also look for possibilities to supply their chocolates overseas in the likes of illy cafés, a coffee shop that is a large international company, selling its coffee-related products in approximately 131 countries worldwide.

The illy group is made up of several companies located in North America, Lebanon, France, Germany, Spain and Benelux. The group employs...
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