Two companies will be looking forward to today's traditional boost inchocolate sales. Colm Ward reports.

As Valentine's gifts become ever more exotic, the old reliables - flowers and chocolates - remain as popular as ever, ideal whether you're an old-fashioned romantic or just a last minute buyer.

But with a dozen red roses now selling for more than €100 in some places (that's if you're lucky enough to have ordered them by now), many will have to be satisfied with chocolate this year.

Long known to have aphrodisiac qualities, chocolate has been a popular love food for centuries. In recent years, however, the range and variety available to Irish consumers has increased dramatically.

The Republic now boasts the second highest per capita consumption of chocolate in Europe.

Fifteen years ago, two women realised that this new appreciation of chocolate presented them with a business opportunity.

They put their idea to the test and the result is Lir Chocolates, a company that specialises in handmade Irish chocolates and truffles.

"I started making chocolates in my own home," explains founder and co-director Ms Connie Doody.

Later, while she was attending an enterprise development course, she met Senator Mary White and they decided to investigate the possibility of setting up their own business.

At the time the market for handmade chocolates in Ireland was dominated by Butlers but they felt that there was potential for another player.

The first step was to do some market research. They travelled to Brussels to see for themselves how things were done at the well-known chocolate manufacturer, Godiva.

Having researched the Irish market, they noticed that much of the chocolate was being sold in very plain packaging, so they decided that a market existed for a good quality product with attractive packaging.

While Ms Doody began to experiment with different recipes in her own kitchen, Ms White worked on developing the packaging.

Soon they moved to a 300 sq ft premises in Dublin's East Wall Road and began selling their products to individual shops in Dublin.

Since then, the business has grown steadily and now employs 70 full time staff in a 10,000 sq ft premises.

At busy times of the year, such as Christmas, Valentine's Day and Mother's Day, they can employ up to 20 additional part time staff. Turnover last year was €3.3 million.

The transition from a two- person business to a much larger manufacturing operation posed several management challenges.

One of the biggest was putting in place the procedures to cope with a steadily increasing workforce.

"As you get bigger you need the structures and systems in place," says Ms Doody.

There were also times when the company was in danger of becoming a victim of its own success as demand threatened to outstrip its production capacity.

"The most difficult bit we found was when we had more sales than we could cope with," she explains.

However, their enthusiasm carried them through and investment through the Business Expansion Scheme allowed the company to develop as the market for its products grew.

In 2000, they sought additional investment in the company. Recognising the need to develop the manufacturing expertise within the business, they wanted more than just a financial investment.

They wanted someone who had a background in manufacturing and who would become involved in the day-to-day running of the business.

At that time, Mr Stephen Cope, a consultant to the food industry, came on board as a director. "We got a totally new lease of life," says Ms Doody. "We now have a situation where we have our production running smoothly and we are growing in the various market sectors."

She believes that the quality of the product and its attractive packaging is the key to the success of the business. "The basic chocolate products that go inside are world class and the packaging has been very good."

Lir chocolates are now sold throughout the Republic in a number of multiples including Tesco, Superquinn and Dunnes Stores as well as in speciality food shops. A distribution deal with Tesco UK means that they are also available in Britain. The company also makes products to order for corporate clients. This sector is currently in a "growth phase", according to Ms Doody.

The next big challenge for the company is the development of its online business. Its website has been in operation for some time but next week will be the first time that customers will be able to buy Lir chocolates online.

Ms Doody is hopeful that this will lead to an increase in business, particularly from people outside Ireland who may have discovered Lir chocolates while visiting the country.

Lir's is not the first website where people can buy handmade chocolates online.

The Irish Chocolate Company, which produces Butler's Irish Handmade Chocolates, launched a new online shopping facility in August 2001. With an average of 235,000 hits per month, the majority of which comes from the United State, this facility has proved to be "very popular", says marketing director, Ms Aisling Walsh.

Established in 1932, Butlers is the largest and oldest manufacturer of handmade chocolate products in the Republic and now employs 175 staff in its two manufacturing facilities in Dublin. "We have been experiencing growth every year," says Ms Walsh.

The key to this growth, she believes, is a commitment to quality and variety. Being a very well-established business, Butlers is at a different stage of its development when compared to smaller competitors such as Lir.

As well as having products available in multiples and other food stores throughout the Republic, it also has a presence in duty free shops.

In 1998, the company diversified its operations by opening the first of several Butlers Chocolate Cafes around Dublin where customers can sample the Butler's chocolate while having a cup of coffee.