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Leitrim Case Study: Merenda Ltd

Ronan Haslette left his job in the FMCG industry in Dublin to come back to Co Leitrim and take over the management reins of his family business Merenda Ltd.

Merenda designs and manufactures wood veneer products for use in furniture and interiors and also supplies specialist accessories such as presentation pieces and displays and adhesives.

The Haslette family has been involved in business in Leitrim for many years and Merenda was established by Ronan’s parents.  Ronan has recently taken on the role of Managing Director and he feels the company is built on a very secure foundation, “We have a unique ability to run the company using a foundation of core family values via an inclusive management style and employee interaction.  I firmly believe that we would not get this team interaction and core company stability anywhere other than the West of Ireland.”

MerendaThe company employs 20 staff at its custom built facility in Manorhamilton and Ronan says that the workforce “has a mix of youth and experience, a solid education base, cultural diversity and company loyalty.” There are five different nationalities represented in the workforce and 70% of the staff have worked for Merenda for over 5 years.  Under the Enterprise Ireland Productivity Improvement Fund, the company has increased the overall efficiency of their operations and use certified specialists to up-skill staff on an ongoing basis.  They have also invested in management training through the IMI, and regularly avail of seminars and training from bodies such as IBEC, the Small Firms Association and local third level colleges.

Merenda has close links with several third level institutions in the region including IT Sligo, which has a department of Industrial Design.  Graduates of the IT are currently working with Merenda on product development initiatives and User Centred Design through the department of Design & Innovation.  The GMIT Furniture College in Letterfrack provides an industry network which Merenda is part of and Ronan has been a guest lecturer to the Masters students in Marketing Practice at Letterkenny IT. Merenda has recently started a new Enterprise Ireland funded, innovation programme with Cork Institute of Technology and IT Sligo. This project will run for 12 months and the strategic goal is to launch a number of new products on the back of this research which will support Merenda’s strategy of moving its products up the value chain.

Their approach to product development and innovation is a long standing part of Merenda’s business model and enshrined in their Strategic Business Plan up to 2011. Significant monies have been spent on maximising Merenda’s core competency of working with wood veneer and creating innovative and design led products to satisfy its discerning customer base. On another innovative approach taken by the company Ronan explains “We recycle 90% of our wood waste into our Manorbloc solid wood fuel.  This integrated part of our production plant was upgraded when we moved into our new factory and it allows us to drastically reduce our waste costs while providing us with an addition to our product portfolio.” This ‘can-do’ attitude to overcoming business challenges has allowed Merenda to prosper and develop worldwide from its Global Headquarters in Manorhamilton.

Many of the challenges in recent times have been driven by the economic downturn.  “There has been a significant drop in sales especially in Ireland and the value of each order we now get has significantly decreased”, explains Ronan.  “But on a positive note, while the issues we are suffering seem to be universal in all industries, being in the West has been an advantage at this time, as the community spirit to keep jobs, pull together and support the company is very strong in our workforce.”

Merenda has also made significant investment in business space in Manorhamilton as well as people training and product innovation. 8 years ago they built a new factory facility, which provided significant savings in the purchase and building phase and would have cost twice as much in other locations.  While Ronan feels that day to day business costs are not likely to be much different to other locations, being situated in Manorhamilton has certainly not hampered Merenda’s growth. “Once you establish a strong brand name and reputation, maintain tight management controls and provide world class customer service, your location can be irrelevant”, he said. “In our case, proximity to Northern Ireland is a big advantage as we have a large number of customers in the North and can avail of the transportation network there to deliver to customers by 10am the day after they place their order”, Ronan explains. “The UK is our largest export market and the advantage of using the Royal Mail for next-day deliveries is a big bonus.  We also airfreight export orders to customers in the Middle East and Australasia a number of times per year using Dublin Airport.”

Airports in the region such as Sligo Airport and Ireland West Airport Knock are a great asset to Merenda.  While Ronan would like to see additional Dublin day time flights in and out of Sligo Airport, the service does assist the business “Suppliers and customers connect through Dublin to Sligo.  This offers them significant time savings and reinforces the connectivity of Merenda to the wider world.”

Leitrim provides an excellent environment for staff too with low commuting times and very little traffic congestion compared to other locations.  The area offers a wide range of leisure options from GAA to tennis, hill walking to dancing.  Ronan says “Many of our staff have small children and are very satisfied with the facilities and the quality of childcare available.  The proximity of staff to their extended families generates a great sense of community and there are also excellent outdoor amenities for children.”

“A customer of ours recently said that ‘The Irishness of Ireland is still very evident in the West’, which he meant in terms of traditions, culture and a sense of place.  We have plans to expand and grow Merenda’s market share in the future and achieving this will require us to develop new product innovations, new markets and maximise the training and competencies of our people.  Our location in Leitrim offers great quality of life, excellent access and support and it is enjoyable doing business with a loyal, considerate and diligent workforce.”

 

Further Links for Merenda Ltd:

Website: http://www.merenda.com/


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