Keogh’s Crisps Expands After US Tariff Hike

Irish Crisps Firm Sees Possibility Amid US-EU Trade tensions

KeoghS Crisps eyes Canadian market as U.S.tariffs create global supply chain uncertainty.

2024

Tariffs Spark Global Trade concerns

The imposition of tariffs on European exports too the United States is causing ripples of concern across the Atlantic and beyond. Tom Keogh, founder and managing director of Keogh’s Crisps, an Irish snack food company, believes these tariffs could “burn bridges around the world” for U.S.companies. This disruption, however, presents a unique opportunity for Irish businesses like his to capitalize on the ensuing uncertainty.

Keogh’s Crisps Navigates the shifting Landscape

Keogh’s Crisps currently exports approximately 15% of its volume to the United States, a market that Keogh said had been “growing quite fast” recently. The tariffs,though,could potentially impede this growth. Speaking about the situation, Keogh noted, “The tariffs have the potential to slow down the growth my company is having in the US market.”

Rising food prices in the U.S. have made imports from Ireland more competitive,potentially mitigating the tariff’s impact. keogh explained that recent price inflation in the U.S. had led to food being “very expensive” compared to previous years.

He added, “The reality is that my customers on that side of the water are buying our products a lot cheaper today than they were back then. That difference means ther is definitely room for negotiation with my customer base to see how they will actually go and fund these tariff increases.” This pricing advantage allows Keogh’s to negotiate with its U.S. retailers to absorb some of the tariff costs.

Canadian Opportunity Emerges

While the U.S. market faces headwinds, Keogh’s Crisps is strategically pivoting towards other markets. the company has recently established supply lines to Australia and Japan,which Keogh described as “very promising” markets with “large room for growth.”

Furthermore, Keogh revealed that Canadian retailers, seeking to diversify their supply chains away from traditional U.S. partners due to trade tariffs, have begun contacting Irish companies, including Keogh’s Crisps. “Sence the talk of US tariffs came into play,the Canadian market has started to look very engaging,” Keogh stated. “We’ve had inquiries from Canadian companies looking to Ireland to source product. There is uncertainty across the global supply chain,and as every business owner knows,with uncertainty comes opportunity.”

Implications for U.S. Consumers and businesses

The U.S. tariffs could lead to higher prices for consumers and reduced competitiveness for U.S. businesses relying on European imports. Such as, a small business in Wisconsin that imports specialty cheeses from Europe might face increased costs, potentially leading to higher prices for consumers or reduced profit margins.

this situation could also incentivize U.S. companies to seek option suppliers outside of Europe, potentially impacting long-standing trade relationships. The tariffs could trigger a domino effect, disrupting supply chains and altering the competitive landscape.

Expert Analysis and Future Outlook

Economists suggest that trade wars and tariffs frequently enough lead to unintended consequences, including increased costs for consumers, reduced trade volumes, and strained international relations. While some argue that tariffs protect domestic industries, others contend that they ultimately harm the overall economy by distorting markets and hindering innovation.

For keogh’s Crisps, the ability to adapt and diversify its market focus is crucial for navigating the complexities of global trade.As Keogh notes, even with potential setbacks in the U.S. market,”we’re experiencing growth in other markets as well… we can redouble our focus on those markets now too.”

© 2024 Archyde News. All rights reserved.

-How is Keogh’s Crisps navigating teh challenges of the U.S.-EU trade tensions, especially concerning their U.S. market presence?

Interview: Tom Keogh on Keogh’s Crisps and Navigating U.S.-EU Trade Tensions

By Eleanor Vance, Senior Business Correspondent, Archyde News

Archyde News recently sat down with Tom Keogh, Founder and Managing Director of Keogh’s Crisps, to discuss the impact of U.S.-EU trade tensions on their Irish snack food business and how the company strategically adapts in a fluctuating global market.

eleanor Vance: Tom, thank you for joining us. The recent tariffs imposed by the U.S. have undoubtedly created uncertainty.How is Keogh’s Crisps navigating these challenges, specifically concerning your U.S. market presence?

Tom Keogh: Thanks for having me, Eleanor. The tariffs certainly add another layer of complexity. We currently export about 15% of our volume to the U.S., a market that was growing quite well for us. The immediate impact is the potential to slow that growth, and we’re closely monitoring it. However, rising food prices in the U.S. have changed the game a bit; our products are now relatively more competitive, giving us some room to negotiate with our customers there.

Eleanor Vance: You mentioned negotiation. How do you approach managing the cost impact of these tariffs, and how do your retailers respond?

Tom Keogh: We’re working closely with our U.S. retailers.With the rise of food prices on their side,the cost difference offers negotiation opportunities. The reality is that our consumers are still getting a good deal on our crisps, and we look forward to continuing to supply them as much as possible. We’re collaborating to find solutions, maybe some adjustments, or we’re seeing where we can absorb some of the tariff costs without significantly impacting the consumer price, or our margins, if possible

.

Eleanor Vance: Keogh’s Crisps is also looking at expanding into othre markets. Can you tell us about your strategic shift toward Canada and other regions?

Tom Keogh: Absolutely. While we’re addressing challenges in the U.S.,we’re actively exploring other opportunities. We’ve recently established supply lines to Australia and Japan, markets that are proving very promising, with significant room for growth. And, as you mentioned, the Canadian market is getting very interesting, too.

Eleanor Vance: You mentioned Canada. How have they taken note of the tariffs, and how are you currently responding to Canadian interest in your products?

Tom Keogh: Yes, since the talk of U.S.tariffs came into play, the Canadian market has started to look very engaging. We’ve had inquiries from Canadian companies looking to Ireland to source product. We’re responding very actively, assessing what we need to do to start a new market, and considering everything from logistics to product suitability. And from our point of view, it makes sense; there’s uncertainty across the global supply chain, and as every business owner knows, with uncertainty comes opportunity.

Eleanor Vance: How do you see these trade tensions impacting U.S. consumers and businesses, especially the smaller ones?

Tom Keogh: It’s a very relevant concern. Tariffs could certainly lead to higher prices and reduced competitiveness for U.S. businesses dependent on European imports. Think of a small specialty cheese importer in Wisconsin, for instance. Increased costs can either mean higher prices for consumers or lower profit margins for them. It could incentivize U.S. companies to explore options elsewhere or weaken existing trade relationships. The impact is not always immediate but has the potential for long-term disruption.

Eleanor Vance: Looking ahead, what advice would you offer to other businesses currently facing similar trade pressures?

Tom Keogh: Adaptability is key. Diversify your markets, and be prepared strategically. Even with possible setbacks, there are opportunities elsewhere. Explore new markets and be very aware of emerging trends that shape global trade. Stay connected with your networks and continue to monitor your supply chains for possible shifts. And also, learn from the best!

Eleanor Vance: Tom, what are your main priorities over the next 12 months, given the global environment and changes in global trade?

Tom Keogh: The main priority is ensuring a strong and stable supply for all markets, including our own. We will continue working diligently with all of our retailers to manage the changing market landscape. We’d also like to work in an environment free of tariffs, that is the goal.

Eleanor vance: That is great to hear. If the tariffs remain in effect for the long term, how different do you see your business’s strategic approach?

Tom Keogh: It’s a great question. Should these trends continue, we will be ready to reassess our direction and adjust accordingly for our current markets. We must develop strong supply lines to our potential markets to compete effectively. These actions will influence how we look at resource allocation. we are ready to shift our focus.

Eleanor Vance: tom, thank you for your time and insights. It was an enlightening conversation.

Tom Keogh: Thank you for having me.