William McColgan and his sister Grainne Hampton purchased McColgan’s, a food business established by their grandfather, in 2022.
It is a third-generation family business located in Strabane, Co Tyrone, on the Border with Co Donegal. Established as a tea room in 1940, McColgan’s has grown to become one of the largest producers of savoury pastries on the island.
The group has one factory located in Strabane, where it employs about 300 people. Its original retail location continues to operate on the town’s Main Street.
What vision/light-bulb moment prompted you to start up in business?
In my second decade of corporate life, I went back to do an MBA, surrounded by employees of major corporations and some successful entrepreneurs. Seeing the example of the self-employed, it became obvious that being able to set my own direction and having the freedom to live more authentically would be good for me. And it has been.
RM Block
Describe your business model and what makes your business unique.
We make chilled and frozen pies, sausage rolls, and quiche for all the major multiple supermarket brands in the Republic, as well as Northern Ireland and Britain. We have a commanding presence on the island of Ireland and take our market leadership in the category very seriously.
What is your greatest business achievement to date?
What my sister and I have achieved in terms of culture and transformation in the short span since we bought the company in 2022 has been a wonderful thing to witness. Culture requires daily reinforcement, but the impact is immense. It comes about slowly, but there is a quality to experiencing the shift, which is hard to describe.
What was your back-to-the-wall moment and how did you overcome it?
Immediately after we took on all the debt and bought out the prior owners, the invasion of Ukraine happened. Commodity prices went skyward, as did interest rates, and we made the first loss in the company’s long history. And it was a big loss. In response, we became obsessively focused on the value drivers of the business and managed them daily, the old-fashioned way.
What moment/deal would you cite as a turning point for the company?
The 2022 buyout was a major turning point in shaping the company into what it is becoming today. It was already a successful business, but growth had stalled. I’d say the real game changer was the fresh perspective we both brought, having worked abroad for global companies, and how that experience could be truly transformative.
What were the best and the worst pieces of advice you received when starting out?
The best advice was probably from my father: “Not every shot has to be on goal. Keep playing the long game.”
The worst? “Work hard, do what you’re told, and your employer will look out for you and your career.” This was never explicitly said to me, but it’s a mindset many people starting out seem to adopt.
To what extent does your business trade internationally and what are your future plans/ambitions?
Most of our sales are exports, with the Republic as our largest market and Britain as the second. Given the market share we enjoy in Ireland, we must look to the UK and beyond for continued growth. We expect to secure several significant new international accounts this year and next, which will further strengthen our global footprint.
Describe your growth funding path.
Historically all of our growth has been funded through our own operations.
How will your market look in three years?
Food-buying trends are shifting more quickly now than during the prior 60 years we have been in business. There is a strong transition towards healthier eating, and this is unlikely to slow. The prevalence of plant-based proteins is growing, in tandem with the growing awareness of the environmental impact of meat. Our business will be at the forefront of both trends while defending our traditional markets.
What are your annual revenues and profits?
Revenues of £30 million (€34.4 million) and profits of £2 million to £3 million.
How are you deploying AI in your business and what impact has it had on your performance?
We’ve developed a predictive model to forecast demand in collaboration with the Hartree Centre, and now have some in-house capability as a result of that partnership. We’re also applying pattern recognition to accounts payable and have begun training a model to support accounts receivable. We do not currently use generative AI for any external-facing content.
