Industry cateorgy - Gallaghers Bakery

Entrepreneur: Declan Gallagher
Business Activity: Bakery

Gallagers was set up in 1994 by Declan Gallagher and is located in Ardara, Co. Donegal. Under their French Mill Brand, the company primarily focuses on par baked Bread (partly cooked) and the hot food deli markets. The par baked bread market in Ireland continues to grow rapidly and Gallaghers French Mill Brand has already achieved 25% market share.

Gallaghers produce par baked breads (80% cooked), traditional bread (sliced breads, sodas), confectionery and hot food bar products under their French Mill brand – 80% of the company’s products are frozen and last up to 1 year.

Gallaghers use their own natural fermentation process in their production facilities which gives their products a more natural and better taste and also allows their products a longer shelf live. The company is BRC accredited, employing 160 people directly and an additional 40 indirectly.

Customers include – Spar, Superquinn, Dunnes Stores, Tesco, Harold’s, and Statoil.  Customers are supplied with a complete package for in-store bakery and deli counter needs. This includes in-store training, ovens, display stands, complete merchandising range, coffee stations and point of sale items to any size of outlet, whether a large supermarket or a convenience store. The recent signing of contracts with companies in Europe and UK will substantially increase the export market.

Recognising the need to diversify into new products and new markets the company has recently started phase one of a €12 million investment in new plant and machinery for additional production and storage facilities. This will enable them to produce and expand the current range and develop new products.

Entrepreneurial Questions

What vision prompted you to start up in business?
Having the experience in the production of fresh bread combined with the closure of many regional bakeries and people baking less at home we saw the opportunity to mass produce breads suitable for the in-store bakery market, foodservice market and new consumer trends.

Describe your progression from start up to your current status?
Starting from a zero customer base and little investment, we have invested €1.5m in 1994, €4.5m in 2001 and are currently in stage one of a €12m investment to diversify into new products for supply to our current customer base of over 2000.

What was the biggest risk you have taken?
Initial expansion programme in 2001 - everything was on the line.  We needed customers and we needed them fast!  With a limited sales and marketing team we began developing a customer base.

Who or what has most contributed to your success?
Without our dedicated workforce our expansion programme could not have happened.  Each and every one of them played their individual role and the feeling of ownership which they have gels the company together and allows us to expand.

What is your biggest business achievement?
Getting products listed with the multiple and symbol groups and also setting up our export division has been very rewarding.  Seeing our products displayed on shelves all over the country and in Britain and Europe gives tremendous pride.  When you are in a multi-national supermarket and you see a consumer with 2 or 3 of your products in a shopping basket, it feels great.

What is the best piece of business advice you ever received?
Always keep a close eye on cash flows and also don’t take business or people for granted. You are only as good as your last loaf. 

Express the biggest challenge you see your industry facing.
Letting the industry get stale (excuse the pun!) which could lose customer interest. Also diversifying into new products and monitoring market trends, which is essential.

Name a famous international entrepreneur you most admire and why?     
Having seen Dennis O Brien on the ‘Late Late Show’ telling his story of how he placed his home on the line for capital. That showed me what self-belief was all about.  If you don’t take chances you will never reap the rewards!

How do you re-charge your batteries?
My other passion in life is cars. I’m always on the look out for that ‘unique’ car - old or new.