Belleek pins growth hopes on marketings foray in US

BELLEEK Pottery is aiming to increase sales by 30 per cent over the next two years, with growth coming almost entirely from the US market. To service the expected growth, the company is to invest almost £3 million in new plant and machinery in an attempt to reduce costs and increase efficiency at the Co Fermanagh factory.

Belleek employs nearly 170 people at its plant in the town, and expects the current investment plan to lead to the creation of around 30 new jobs. Belleek's owner, the Dundalkborn millionaire Dr George Moore, says that the US market is now the primary target.

"Our partnership with American distributors has given us access to a network of US department stores," he said. "We also feature on TV shopping channels and in catalogues specialising in high quality Irish made merchandise.

The US market accounts for around half of Belleek's sales, but it remains highly price sensitive. One of the main reasons for the latest investment by the company is to increase operating efficiency to the level necessary to remain competitive in the potentially lucrative US giftware market, which is worth in the region of $24 billion a year.

Two years ago, a combination of new products, new markets and a sharp increase in the number of visitors to its Fermanagh factory contributed to a rise in gross profits to a record £2.5 million. Pre tax profits also increased, to almost £500,000. Despite the ending of the IRA ceasefire, figures for 1995/96, to be announced shortly, are expected to show that the company has maintained this improvement.

An important part of the Belleek operation is the number of tourists who visit the factory on guided tours, during which they can watch at close quarters the moulding and shaping of the world famous parian china.

In 1995, during the full year of the IRA ceasefire, visitor numbers rose to 186,000, making it one of the top five tourist attractions in Northern Ireland.

At the time, Belleek was hopeful that the continuation of the peace process would result in thousands of holiday makers from Britain and the United States coming to Northern Ireland, and would contribute to a steady increase in tourism revenue.

But hopes that last year's figure would approach the 200,000 mark were ended with the resumption of the IRA's campaign and the numbers are reported to be down slightly on 1995, at around 180,000.

Although the threat of renewed violence appears to have deterred at least some American and British visitors, the company is still hopeful that the latest investment, backed by the IDB, would increase its competitiveness in the US market, and that it would continue to benefit from increased sales in other markets such as France, Germany and Australia.

Northern Ireland Economy Minister Baroness Denton said that the company's "aggressive marketing campaign" had contributed to increased export sales. "Belleek is now operating at full capacity," she said. "This investment is essential if the company is to take full advantage of the growing demand for its distinctive and high quality products."