Freshways branching out in lunchtime market

The Freshways brand has been going since 1990. Back then it was part of the Kerry Group – a high-quality facility in Finglas in north Dublin making sandwiches and existing pretty much under the radar of most consumers.

Fast forward to 2014 and a management buyout of Freshways Food Co by Diarmuid Shanahan and Garrett Fitzgerald meant new verve for the Freshways brand which is, by volume, the largest sandwich producer in the country.

“The business didn’t fit strategically with the parent company and they were looking for opportunities,” says Shanahan. “We thought that we could make a business out of it.

“It was also heavily integrated into the parent company, making it difficult for someone else to buy it, so we pursued it.”

In-depth knowledge of the internal workings of the business was an advantage for the two men but, with the management buyout, the business essentially became a “new start-up” for them – albeit one with a large manufacturing facility and experienced staff.

“It needed a focus and new energy and the capability was here to make that happen.”

Coming from the Kerry Group meant the brand had an existing legacy of quality production but the product offering was in need of a serious shake-up, and, with services such as IT and distribution formerly handled as part of a wider company, new structures and staff needed to be employed (so far it’s increased from 175 to 250). The IT infrastructure has seen an investment of €250,000 and brand and product improvement a €450,000 investment in the past year, with €1 million spent on the fleet of 30 vehicles now delivering 250,000 products per week throughout Ireland.

For both Shanahan and Fitzgerald, taking over the helm of Freshways has been a learning curve.

“When you’re part of a larger organisation, there is a level of delegation and support in the background when it comes to getting things done. Right now, anything that has to happen has to go through ourselves and that’s all part of the re-set-up phase and growing pains,” says Shanahan.

They say that the past year has been about “laying the foundations for growth” and “growing rather than simply minding” the brand. “Times had changed and Freshways needed to be moved on from a producer of sandwiches to a recognisable brand, but the key difference now is speed and focus.” says Shanahan. “Myself and Diarmuid are very much aligned about where we want to get the business to,” adds Fitzgerald.

“The sandwich category had gone through four to five years where there were fewer people going to work and those who were, were making their own sandwiches at home. We saw the winds of change and that the foundations were there but that the business needed to be energised,” says Shanahan, who says that the category has now gone into growth with key drivers being more people in employment and a “premium-isation element” with people willing to spend a little extra on a higher quality product.

The sandwiches have always been handmade, something readers may find surprising.

“It is labour-intensive,” says Fitzgerald. “Each piece of bread is examined for holes, each piece of tomato is checked – all the ingredients are handcut and hand-placed to ensure quality and consistency.”

The company is focused on a high-standard product offering and has sought to diversify the offering with a Lighter range and a Chef’s Special range included alongside their Classic and Big Eats ranges.

They’ve introduced different “carriers” such as wraps, bagels and flatbreads and, while the chicken and stuffing sandwich remains the most popular product, the range now includes the likes of carrot and coriander falafel and beetroot feta and hummus to satisfy contemporary tastes.

As well as their own-brand – Freshways products are sold at sporting venues, schools, hospitals and shops countrywide – the company also produces for well-known supermarket and convenience stores such as Tesco, Supervalu, Centra, Spar and Londis.

“It’s a convenience purchase. If there is a lunchtime footfall and a fridge, we can be there, so there is great untapped opportunity there,” says Shanahan.

The location of the 60,000sq ft production facility in Finglas is a favourable one, they say, as it allows them close proximity to the “rich sandwich grounds” – Dublin city centre and the M50 and M1 (20 per cent of their business is in Northern Ireland).

The facility there is British Retail Consortium (BRC) A grade and ISO 14001 and the only unit in the Republic that operates to UK multiple standards.

“Service is a key part of what we do, we have to get there early, our vans are driven by direct employees. Our location is hugely important in terms of sourcing ingredients but also getting the product to the retailers whether that is in Stephen’s Green or in Tralee.”

Fitzgerald says that one of the main challenges for food producers is striking a balance between quality of ingredients and cost – the product needs to be affordable, must be made continuously to spec and must also be profitable.

Since the two took over at Freshways, the brand has been the recipient of several awards from Blas na hÉireann and the Irish Quality Food Awards.