The Big Interview
Ornua dairy boss explains his £100M challenge
For a former technical consultant with a PhD in microbiology, who now happens to be in charge of a £100M business, Aidan Wilson is alarmingly self-effacing.
“I’m not an expert in anything, really,” he confesses, as we sit in the boardroom of the Ledbury, Herefordshire, site of Ornua Ingredients the UK arm of the company owned by a co-operative of Irish dairy processors and farmers.
“I just know how to get the right people together who are,” he explains. “So, if you ask me for any market insights, I might not be able to help, but there’ll be someone else who can.”
Having the right personnel behind him is no doubt a high priority at the present time, as Wilson oversees the integration of two UK businesses the Ledbury site formerly known as Meadow Cheese, and what used to be called The Cheese Warehouse, situated 65 miles away in Whitchurch, Shropshire.
And, despite his modest demeanour, Wilson clearly has a grasp on what is required to see the merger through.
Formerly known as the Irish Dairy Board (IDB), last year the company was renamed Ornua, which is derived from the Irish words ‘ór nua’ meaning ‘new gold’. The rationale behind the move, according to Wilson, was to anticipate the extra supply of milk entering the market following the removal of the EU quotas.
“The main remit of the company is to export Irish dairy products, which it does successfully, with a 60% export market share. The Ornua name retains the Irish link but gives it more international appeal,” he explains.
With annual sales of more than $2.3bn, Ornua supplies dairy-branded products and ingredients to more than 110 markets around the world. Its most famous brand globally is Kerrygold butter, but in the UK that is surpassed by Pilgrim's Choice cheddar.
As part of what Wilson claims has been an “aggressive” mergers and acquisitions process, the then IDB bought The Cheese Warehouse in 2012. Wilson was at the helm of the Whitchurch-based company at the time, and helped facilitate the sale.
“The Cheese Warehouse is primarily a scale business, supplying around 24,000t of grated, crumbed, sliced and diced cheddar blends per year,” Wilson explains.
“On the other hand, Meadow Cheese is more technology-focused, manufacturing and supplying products such as mozzarella and functional cheeses.”
Logical merger (RETURN TO TOP)
Wilson describes the nature of the businesses as “complementary”, making it all the more likely in his view that a merger was the logical way forward allowing Ornua to approach the UK market with greater synergy.
“We didn't bring the businesses together to save money or cut down on staff,” he says. “It was really to be able to approach the market in a more structured and customer-focused manner.”
Products are broken down into three main groups liquids, pastes and set products. Liquids include the likes of béchamel sauces, cheese sauces, custards, stabilisers, gels and jellies.
Pastes mainly comprise full-fat soft cheeses and dessert mixes for items such as cheesecake the sort of ingredients that Wilson says can be used in desserts or in ready meals “to create a point of difference”.
Set products, meanwhile, include functional cheeses, which can be tailored to the specific needs of a customer.
The company rebrand has also been met with what Wilson says is a “renewed focus” on new product development, most notably in the form of new brand Palatina.
“Palatina is a foodservice brand that we've launched into the UK market. It's a range of mozzarella and mozzarella-blended products with very good functional properties and a consistent shred,” he says.
“Ornua has invested £4M into creating products for the brand, and we are hoping it will do well globally, and in the Middle East in particular.”
Back closer to home, Wilson's own focus is very much on integrating the two sites. While only making minor adjustments to the management structure, the operations directors at both sites have both been given a degree of autonomy.
“To me, it's about collaborative leadership. It's about getting people on-side without being dictatorial at all. In effect, handing others the responsibility to make their own decisions.”
Wilson, who picked up his PhD at Queen’s University Belfast before moving to the UK in 1996, held what he claims were some “fairly senior positions” from an early age namely at Haslington Cheese in Crewe, which was subsequently bought by Dairygold Food Ingredients (DFI) in 2000.
He believes this quickly helped him realise that getting the best out of people was vital to running a successful operation.
“I’ve held quite influential roles since early on in my career, and as a result, I made more mistakes early on in my career. But, to be honest, that’s the best way to learn.”
After leaving DFI in 2002, Wilson set up his consultancy business Castle Lodge Technical Services before a stint as technical director at Futura Foods eventually led him to The Cheese Warehouse in 2009.
“I had built up connections with the Ornua owners through my technical consultancy, which covered businesses in both the UK and Ireland. I also facilitated the purchase of The Cheese Warehouse by Ornua in 2012, so when they asked me to become chief executive as part of the recent merger, I gratefully accepted.”
Business direction (RETURN TO TOP)
Rather than be “gung-ho” and bring lots of new technology in, Wilson says the plan for the business now is to look at the market and work out in what direction it should go.
“At the end of the day, what we deal in is a commodity. But by adding value to the products we make, we are able to de-commoditise it. That involves talking to customers about how they apply cheese, and realising its potential.”
Trends to watch out for include the growth of smoked cheese products. “It ties in with the rise of street food and on-the-go snacking, which is a great opportunity for cheese sauces,” Wilson says.
Macaroni cheese seems to be making a comeback as well. “We’ve just launched a cheese crumb, which is available in a number of flavours, such as tomato and basil. It’s an ideal product for foodservice operators to add value to their dishes.”
But the market isn’t without its challenges as well. According to Wilson, the ongoing issue of depressed milk prices means not only is there a glut of cheese on the market, but it is also affecting customer buying choices.
“Because prices are so low, customers have moved away from cheese substitutes and towards mozzarella, which can have an impact on supply channels and the way we tailor the business.”
Despite the current trading conditions, Wilson is confident that Ornua Ingredients is ideally-placed for growth.
“We have lots of exciting product innovation in the pipeline, but it’s just a case of working out where the growth will come from and prioritising the opportunities we need to pursue.
“Thankfully, I have a great team I can fall back on if I’m ever in need of advice.”
AIDAN WILSON (RETURN TO TOP)
JOB TITLE: chief executive, Ornua Ingredients UK
AGE: 49
DOMESTICS: Married, with two children.
PREVIOUS ROLES INCLUDE: md of The Cheese Warehouse; Technical director, Futura Foods; Owner, Castle Lodge Technical Services
AWAY FROM WORK: Golf and cycling are his main interests. “You can very easily get drawn into being obsessive about work, so it’s good to get away from the pressures," Wilson says. "My new year’s resolution is to play golf at least once a week.”
