ABC Nutrition's exporting strategy for success

Having known each other since secondary school, Willie Wixted and Sean McNamara decided to set up the company when they saw an opportunity in powder-based nutrition products, which were coming into Ireland at the time from the US. They were joined soon afterwards by Atis Vitolins, who is now production manager.

“Our initial products were whey protein powders in January 2007. We got a customer in the UK and another in Dublin after a few months. We had links from working in the nutrition and beverages area and made contact with people before starting the company,” Wixted recalls.

Having studied food technology, Wixted went back to college to do a master’s in sports nutrition after setting up the business. He says it has grown very quickly since as demands keep increasing. From the whey protein powders, ABC Nutrition broadened its product range to include energy products and weight gain and loss as recovery products after exercise.

“In year one, exports accounted for 30pc of turnover, which was €700,000, and we finished the year with two major contracts, one of which was to distribute sports nutrition products into gyms and pharmacies,” says Wixted.

Now with 20 customers, ABC Nutrition expects turnover of €3.5m for 2011, 85pc of which is now exports.

“After year one, we saw quickly that currency fluctuations were affecting us badly as our business grew in the UK. In the middle of year two we were able to hire a graduate through the InterTradeIreland Fusion programme and we gave her [Laura Fahey] the task of developing business overseas,” explains Wixted.

Tracking down international customers

Fahey’s full-time focus was to generate leads and track down customers internationally. The company started exhibiting at trade shows and using the internet to target people outside Ireland with samples. It targeted distributors, chains of shops and online retailers.

“In the early days most of these were reselling American brands; we were offering them the chance to have their own label product, either our brand or theirs. They liked this idea as there is extra security in building up your own brand,” Wixted says.

“We attracted customers in Sweden, Italy, France and Germany. Having started out with one 4,000 sq ft manufacturing unit, in the second year we took on another one of the same size and added a further 4,000 sq ft last year.”

ABC Nutrition manufactures everything itself and currently employs 10 people, including four graduates.

Wixted says a number of factors have influenced its success to date. “Sports nutrition has become more mainstream in recent years, having first been adopted by professional athletes and then filtering down into the amateur field. We’re lucky in that one of the main ingredients of our products is dairy protein. Ireland has some of the best quality dairy proteins in the world.

“We have accumulated a high level of expertise in sports nutrition and experience of making products, which has made us experts in the area.”

Importance of outside support

Outside support has also been important in ABC Nutrition’s growth. “We have been with Bank of Ireland since we set up the business in January 2007. It provided us with start-up loans, leasing for equipment and an overdraft facility. We have always found Bank of Ireland to be helpful and we have a good relationship with our bank manager. As we have expanded, the bank has continued to offer us support,” notes Wixted.

Otherwise the company has received marketing support from Bord Bia, enabling it to attend trade shows and produce marketing materials, and Clare County Enterprise Board provided grants which allowed it to buy equipment to improve efficiency.

While sports nutrition continues to be ABC Nutrition’s main focus, Wixted says it has started making products aimed at the greying market, and sees this as the way to go in the future.

“This is a big group of people with disposable income. We have already launched a product in Ireland, Revive Q10 Plus, which lowers cholesterol and blood pressure and we hope to roll this out elsewhere.”