The Small Food Manufacturing Sector in the Irish Grocery Market

Abstract

This paper seeks to explain the continuing reduction in the number of small food manufacturing companies in Ireland by examining food manufacturers' self perceived performance and investment intentions in the context of retailers' supplier selection processes. The paper finds that the greatest and most immediate risk to small suppliers survival is their under—performance in generating retailers' sales andmargins. The paper also identifis a set of inconsistencies in suppliers' investment intentions. It is argued that small manufacturers, while appreciating their relative under—performance in commercial performance, are failing to divert resources into this area. The study also raises concerns about small food manufacturers understanding of their market and the principles that direct their innovation efforts.