Tayto still big cheese

There are certain basic products that Irish people miss when they are living abroad. Tea bags, rashers and Tayto crisps are most likely to be on the list of requests emigrants make when asked by visitors what to bring.

Tayto crisps have been with us since the 1950s, the first flavoured crisps in the world - cheese and onion - originated in Dublin in the Tayto factory off Moore Street. Now the Irish crisp and snack market is worth about £140 million (€178 million) annually and Tayto is still the brand leader here with 60 per cent of the crisp market.

But even the humble crisp is subject to globalisation trends and Tayto is fighting for Irish taste buds alongside heavy hitters like Proctor & Gamble (Pringles) and, since March of this year, Walkers Crisps.

Mr Vincent O'Sullivan is the managing director of Tayto and says he relishes the prospect of more competition.

"Tayto has a deep and longstanding relationship with Irish consumers which has been built over generations. The market grew by 8 per cent last year and more competition in the sector means expansion and more business for us as the brand leader."

Last year was a time of change and upheaval for the management at Tayto.

Owned by the New York-based holding company TLC Beatrice since 1987, the crisps and snacks manufacturer was put up for sale.

Tayto was the only Irish operation owned by TLC Beatrice and the arrangement was a happy one, according to Mr O'Sullivan.

He led a management buyout bid last summer and admits it was initially very disappointing when the drinks group Cantrell & Cochrane succeeded with its £68 million bid.

Mr O'Sullivan insists that there are no regrets and that he was glad to stay on as managing director. "We have a very full and constructive relationship with C&C and the benefits of that relationship are already beginning to work through", he said.

This year Tayto is investing £3.5 million in a new state-of-the-art-crisp production line in Terenure. The new machinery will take over the production of the LFC (Low Fat Crisps) brand, which is currently outsourced to Denmark.

"We've also increased our marketing spend and we're investing over £2 million in the brand this year. There are great opportunities in joint merchandising with C&C and we also have support from them on IT programmes," Mr O'Sullivan said.

Last year two of Tayto's new brands, Treble Crunch and Scoops, were launched in the adult snack market and Texicanos were introduced the previous year.

Part of the company's strategy is to develop its own new lines constantly and to have a presence in each sub-section of the market. King crisps was purchased by Tayto in 1972.

Tayto is the biggest single purchaser of potatoes in the state. The company uses Irish potatoes and makes arrangements on a contract basis with farmers up to a year and a half in advance. "We know the specification and the type of potato we're going to get and they know the price they're going to get, it's a business relationship."

The company uses close to 25,000 tonnes of potatoes per year, mostly from the east coast and has its own extensive storage facilities.

Tayto is now a way of life for Mr O'Sullivan who joined the company as financial controller in 1970. "I thought that it would be good experience for a few years but it's turned out to be far more than that."

There are 320 full-time staff in the Ballymount, Coolock and Terenure plants and many of the employees have been with Tayto since the early days. "It's rather like a family and the innovation of generations of people and their commitment to the company has been tremendous," Mr O'Sullivan said.

The company culture is based on a great sense of pride in the achievement of the brand, according to the managing director. "One of the beliefs in Tayto is that a hard work ethic is important in business. But we also believe that work can and should be enjoyable. The success of the company has been a common goal for all who have worked here over the years."

Because of its well-established workforce, Tayto has not been affected by the skills shortage in the labour market.

"Our people enjoy the work and they tend to stay with us. We had a person who retired this year after more than 44 years service and that's a remarkable achievement."

Mr O'Sullivan finds the fast-moving consumer goods sector a very exciting one to be involved in. "There are new challenges every week, new products and taste changes. We are constantly innovating and developing something for the future."

Marketing and understanding the consumer's lifestyle is the key to developing the company's robust brands from this point, according to Mr O'Sullivan.

"New products and pack formats will be required to meet the changing needs of the consumers. Last year we introduced three new products to the snack market and we're always working on new products."

Tayto is also examining new selling techniques and new sales channels and one recent area with growth opportunities is vending machines.

Mr O'Sullivan said his job went down very well with his four daughters' friends when they were growing up. One of his daughters now works in the marketing department in Tayto but they both agree that work issues should be left in the office.

The crisp manufacturer is adamant that his family always comes first but he enjoys work enormously and is driven by the excitement of new opportunities in the business.

The efforts of the Pepsico-owned snack empire Walkers to eat into the Irish market might make it more of a challenge for Tayto to grow its business but Mr O'Sullivan says it will take more than a marketing blitz to shake Tayto's confidence.

"Tayto is the top food brand in the Republic of Ireland and to maintain that brand loyalty we consistently deliver taste and good value. We also make sure we have new products to offer to cater for changing tastes and lifestyles. As long as we listen to the consumer we can't lose".