“I was very interested to see people pick up six fresh baguettes from the local bakery every morning,” said Gallagher. “I wanted to make the French-style boulangerie accessible to every household in the country.”
Gallagher has built a business with a turnover of about €19m and there are 200 employees working in the 50,000 sq ft premises at the foot of the Glengesh mountains on Donegal’s Ardara peninsula. Each day, French Mill products are loaded into a fleet of 55 branded trucks and delivered to customers including Superquinn, Tesco, Dunnes and Harrods of London.
No newcomer to the industry, the Donegal man had been working at his father’s bread business in Ardara since he was 16. Trips to Europe had introduced him to an exotic world of boules, batards and bouchons — the question that dogged him was how to present them in the Irish market.
While visiting food and drink exhibitions in Europe he hit on the idea of creating a line of par-baked French breads. Par-baked bread is partly baked and then vacuum-sealed to ensure it maintains its freshness. French bread contains no fat, so it can become stale quickly otherwise. When sealed it can keep for a year until it is opened and put in the oven.
“I didn’t think the bakery concept would work well here, but thought par-baked bread would go down well,” he said. Finally, at 25, he could strike out on his own. Armed with a business plan drawn up with the help of an accountant, plenty of industry experience and his father’s blessing, he asked the bank for €1.5m to get started.
In 1994, Gallagher bought an old German yarn factory of 20,000 sq ft and brought in plant and equipment from the continent. He employed 13 staff from his father’s bakery. The aim was to produce the kind of bread that used to be eaten daily in France. So he imported all ingredients from France — except the water.
“Modern, chemical-based breads produce a more consistent product in terms of size, shape and colour,” said Gallagher. “We have gone back to the authentic way the French had of manufacturing 30 years ago.”
When Gallagher started, before the proliferation of Cuisine de France, par-baked was a new concept, but he knew it would work because he had canvassed potential customers before getting started. It is important to do this before investing beyond your means, he says.
Although he is not a certified baker, Gallagher got down and dusty in the early days. “I had to operate at a multifunctional level — from the white coat to the suit — to ensure the business survived and succeeded,” he said. He has given up trying to do everything himself, however. “In the past, delegation or prioritisation were not actions that came top of mind. In recent years, I have realised the benefits not only to me, but to the business and the workforce.”
Working out how to plan and manage new channels of distribution while staying in budget was not easy. “I have learnt to be more patient,” he said.
The increasing cost of raw materials is putting pressure on margins. Gallagher’s response is to invest. “We have to increase investment to stay ahead of the competition.”
Gallagher sank €4.5m into the business in 2001. It is now in the middle of a €12m expansion. “In a challenging environment where consumers are becoming more health-conscious, it is important that we can offer a variety of products to cater for all needs and dietary requirements. This means we have to segment the market and offer a large range, which is not always cost-effective.”
The spirit of the boulangerie, with its cornucopia of breaded goodies, is alive in Ardara.
Rose Costello