Redmond O“Donoghue, who became chief executive of Irish Waterford Crystal at the end of February, has stated that developing non crystal products under the Waterford brand name is one of his aims.
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Redmond O“Donoghue, who became chief executive of Irish Waterford Crystal at the end of February, has stated that developing non crystal products under the Waterford brand name is one of his aims. Mr. O“Donoghue will continue a strategy introduced by his predecessor, Dr Galvin, extending the Waterford brand to non-crystal products.” We are looking for new opportunities beyond our core business. We will take our brand outside crystal. But this must be done carefully. It must be brand enhancing, not brand diminishing,” he said. There will be three main elements to Mr. O“Donoghue“s management strategy, expanding the existing core business, improving margins and developing new business opportunities, including using the brand name to sell quality non-crystal products. There is scope for growth in crystal sales in existing markets such as the US, Britain, Japan and Australia as well scope for sales in new markets such as Thailand, Taiwan and South Korea, he said. But the major concentration will be on expanding in existing markets because, he warned, “it takes years to build substantial sales in new markets”. Asked about his plans to improve margins, Mr. O“Donoghue said: “We can never say our cost base is fixed; we must always be more clever and more competitive.” Margins could be improved by constant attention to operational efficiencies. In 1990, Fitzwilton, US merchant bank Morgan Stanley and an investment group headed by Dr Tony O“Reilly invested I 80 million for a 29.9% stake in Waterford Wedgwood – the holding company for Waterford Crystal and Wedgwood – as part of a financial restructuring. At that time Morgan Stanley took a 14.95% stake as part of a five-year investment plan. The US bank has been reducing its stake which has been taken up by Fitzwilton and Dr. O“Reilly his wife Mrs. Chryss O“Reilly and her brother, Mr. Peter Goulandris. Dr. O“Reilly is chairman of the group. Since the 1990 restructuring the group has steadily recovered from heavy losses. In the year to the end of March 1995 profits doubled to I 22.6 million and the group paid a dividend for the first time since 1988. With the crystal company restructured, the focus will now be on the Wedgwood china operation.