Firms show Brexit resilience with contract win and new customers
A CO Down sandwich company has won a major contract to supply up to 80 local Boots shops and a coffee maker in Lisburn is gaining new customers in early wins of the Irish Sea border era.
Warrenpoint’s Deli-lites’ deal with the chain extends an agreement it has with Boots in the Republic of Ireland.
A local meat processor has also indicated it is in tentative talks with UK multiples expected to opt for Northern Irish suppliers in light of a possible ban on importing chilled meats following the end of a six-month grace period.
Deli-lites chief executive Brian Reid said that the new deal would be worth around £2m over three years.
“It’s a good piece of business and there probably are a few others to come,” he added.
“We’ve supplied Boots for four years in the South. They would have been bringing in sandwiches from Great Britain, but they’ve decided to support local.”
His company employs 230 people.
The Northern Ireland Protocol, part of Boris Johnson’s EU deal, means that checks must take place on food products of animal origin moving from Great Britain to Northern Ireland.
That adds costs, though Northern Ireland companies may be able to step in if firms on the other side of the Irish Sea no longer wish to ship here.
Pure Roast Coffee in Lisburn said it had picked up about 30 customers from online rivals that have indicated they will no longer ship across the Irish Sea.
The business sources its own beans to make coffee bags and coffee pods.
Sales executive Adam Hewitt said demand from consumers was growing.
One Co Down buyer of Nestle’s Dolce Gusto pods said he had been informed that deliveries to “Ireland” had been suspended indefinitely. “This is a minor issue but significant in the sense that it’s an example of how Brexit is adversely impacting on life here,” he added.
Dolce Gusto did not reply to a request for comment.
Mr Hewitt said: “We have noticed quite an up-tick on our website for business here and we’re buying a lot more machinery to enable us to go for the consumer and home market.
“There are a lot of opportunities for companies in Northern Ireland. The demand is there. This week about 20 to 30 customers who used to get their coffee online have come across to us.”
Michael Bell, executive director of the NI Food and Drink Federation, said it was too early to tell whether or not Northern Ireland would emerge better off from the protocol.
He insisted we would not know the long-term rules until after the grace period expired and stressed that continued access to the Great Britain market was essential. “We are in something of a false dawn at the minute as there are a number of derogations in place to allow things to work,” he added.
He said trade in food and drink on the Irish Sea had been sustainable up until now because lorries carrying materials from Great Britain could return with Northern Ireland produce.
But he also claimed that if the Northern Ireland market become less attractive for Great Britain, there would be fewer lorries — removing a route to market.
“We sell three-and-a-half times to four times as much food in Great Britain as we do at home. We may be having small wins in the home market but there may yet be a significant loss in Great Britain,” Mr Bell explained.