Big Cheese Rupp’s Grate Expectations
Munster is famous for its cheese and sometimes it can seem that big dairy groups like Dairygold, Carbery, Glanbia etc have the commercial cheese market sewn up. However, Ingredient Solutions spotted a cheddar market niche in 2000 and the business grew to €38m turnover when Austrian buyer Rupp arrived in April 2022.
Founded in 1908, Rupp is the largest family-owned company in the Austrian dairy industry, producing processed and specialty cheeses under the Rupp and Alma brands at four locations in Europe and Asia. With 750 employees worldwide, Rupp had turnover of €235m in 2021.
Ingredient Solutions, based in Boherbue, 30km west of Mallow, was founded by managing director Ian Galletly and Pat O’Neill. Scotsman Galletly (64) worked in the UK dairy sector before relocating to Kerry, where his wife hails from. He was joined in the start-up by O’Neill, who has other business interests, with Richard Walsh of Glenstal Foods becoming a director in 2006.
The venture’s focus was the food service sector, offering not just blocks of cheese but also cheese that is grated, diced, crumbed, as well as cheese shavings and bespoke blends. That suits all types of volume food manufacturers, as well as restaurants. In the year to March 2021, 28% of sales were sourced domestically, 49% of output went to NI and GB customers, and 22% found EU buyers.
Ingredient Solutions has to buy in the cheddar and specialty cheeses from its own suppliers. In FY21, the gross margin was 8.5%, which threw up a gross profit of €3.2m. The payroll overhead was €2.8m, so the business margins are tight enough. In pre-Covid FY20, net profit was 0.85% of turnover.
After two decades of trading, in March 2021 Ingredient Solutions had current liabilities of €8m and net worth of €3.3m. The Rupp consideration was not disclosed and Galletly, who owned 25% of the company, is still involved. Walsh (40%) and O’Neill (35%) stepped back from the board when the deal was finalised.