Connacht Gold making inroads into Leinster

While it might seem odd to most people to set up a business in the middle of a recession and for a company that has long been synonymous with Connacht to venture into Leinster, for Connacht Gold it appears to be working a treat with the business continuing to build since it opened its doors in February. Store manager at the newly opened Moydrum Road Connacht Gold branch Brendan Tuohy has been with the company for 17 years and began his career with the agri-food chain in its Sligo store working in the yard and after working his way up the ladder he is familiar with all aspects of the business. From the Sligo store Brendan moved to the Riverstown branch of Connacht Gold, also located in Sligo, then became manager of the Gorteen store in Sligo before managing the Castlerea store for three years. Having worked in various aspects of the business, Brendan has been bringing his expertise to the Athlone business since it opened its doors in February, and he said this week the branch has already built up a good customer base. Connacht Gold's Athlone branch was formerly Midland Farm Feeds and Brendan this week would like to thank Jack Moran for his continued help during these early days for Connacht Gold. The opening of Connacht Gold in Athlone has brought along with it jobs, with Brendan being backed up by a team of locals in Pat Creavin, Maurice Breen, Anthony Galvin and Colin Beatty. Maurice is the store's lorry driver and Brendan pointed out that Connacht Gold operates a next day delivery service. Speaking about the first two months in Athlone, Brendan said: "It's been very enjoyable and the feedback is good. We're getting busier. We've had over 6,500 customers purchasing items and then we have accounts also. There are more people walking through the door all the time. This is our first time to branch out of Connacht. It is a brave move, but we've been getting good support from farmers and locals." He added that earlier in the year the fuel section of the business was extremely busy, but now that summer is approaching he is expecting the gardening side of the business to take off. Brendan explained that Connacht Gold stocks a range of pet food, gardening products, wet and outdoor clothing, fuel, fencing, timber for garden decking as well as the agricultural side of the business, stocking the likes of fertiliser and feeds. The store runs special offers occasionally and at present 5ft fence posts are available for €1.75 and one ton of Light Gold Mix is available for €55. Open six days a week and open right through lunch Connacht Gold offers keen prices and Brendan advises people to either call into the store or phone and says he and his staff will try to give them as keen a price as possible. The major multi-purpose store, located off junction 9/Cavan exit includes a 3,000 sq ft shop, a 7,000 sq ft agri-store, and an extensive yard area for storage, display and loading. This latest venture in Athlone brings to 30 the number of stores operated by Connacht Gold in eight counties in the west, north-west and Midlands. Connacht Gold Co-op is the largest agri-food company in the west and has a turnover in excess of €300m and a staff of 560. Last week Connacht Gold reported a solid performance for 2009 and while its turnover reduced by 15%, Connacht Gold Co-op has reported a profit after tax of €1.3m for last year. This compares to a loss of €2.3m for 2008. The company said in a statement last Thursday: "The turnaround took place against a backdrop of a reduction in turnover from €310m in 2008 to €264m in 2009." According to chief executive, Aaron Forde, all areas of the co-op's business were affected reflecting the difficult underlying conditions in the agri-food sector and the economy. Aaron Forde said the depressed international markets for dairy products affected margins and profitability. The co-op was forced to support milk prices for almost all of the year and this impacted on the financial position. However, in spite of tough market conditions and reduced turnover, the consumer foods, marts and agri-business divisions performed strongly and this helped to offset the impact of declining dairy margins. "While a return to profitability in such a difficult year is to be welcomed, this level of annual profitability is not sufficient in the longer term to fund a business of Connacht Gold's scale," he warned. He said that in spite of the difficult trading conditions, the co-op continued with its investment and development programme across a number of key areas, which included the opening of the Athlone branch this year. Connacht Gold Chairman, Padraig Gibbons, said the return to profitability in such an extremely difficult year is a tribute to the commitment of management and staff and to the support of farmer suppliers and customers. He said the emphasis continues to be on seeking to be profitable by trying to maintain turnover, cost control and tight working capital in a distressed Irish economy. Connacht Gold Agri. DIY & Garden, Moydrum Road, Athlone, can be located by taking junction 9/Cavan exit off the bypass and turn right towards Mount Temple. It is open Monday - Friday 9am - 5.30pm, and Saturday 9am - 4.30pm and every day through lunch. Brendan Tuohy and his staff can be contacted at 090 6465652, or email btouhy@cgold.ie.