Retail News January/February 2015

JANUARY/FEBRUARY 2015

© ©

E M S S I K

H S I R I I’M can’t resist

NEW MAYFAIR

FINE KING SIZE

8.50

INTRODUCING

MAYFAIR FINE 4MG THE LOWEST TAR AND NICOTINE OFFERING IN THE MARKET LEADING MAYFAIR HOUSE*

*NIELSEN MARKET TRACK DECEMBER 2014 THIS ADVERTISEMENT IS FOR TOBACCO RETAILERS ONLY AND SHOULD NOT BE MADE AVAILABLE TO THE PUBLIC NOR SHOULD IT BE DISPLAYED IN ANY AREA WHERE IT IS VISIBLE TO THE PUBLIC.

A MODERN EXPRESSION OF QUALITY

Retail News|January / February 2015| www.retailnews.ie|3

Contents Cautious Optimism for 2015 THE Irish retail sector entered into 2015 with arguably more reasons to be cheerful than at any time in the last seven years. Retail sales enjoyed consistent, albeit modest growth across 2014, the Government introduced a reasonably consumer-friendly Budget last October and, perhaps more importantly, consumer sentiment is at its most positive point for years.

Thus, Ireland’s retailers could be forgiven for thinking the worst is over and approaching the future with a degree of optimism.

This must, however, be tempered with a healthy shot of reality, as we are coming off the back of years of economic calamity and falling sales.

Such is the message of cautious optimism from Retail Ireland in our in-depth interview (Page 18). Retail News editor John Walshe talks to the new men at the helm of Retail Ireland, Chairman Conor Whelan and Director Thomas Burke.

In a wide-ranging, insightful interview, the duo highlight the big challenges facing the retail sector in 2015, from upward only rent reviews to getting Irish consumers spending ,and Retail Ireland’s plans to address them.

Elsewhere in this issue, our chief news reporter Pavel Barter reveals the latest rounds in the war on tobacco and where both sides stand (Page 4), while in a special report, we look at the fastmoving area of Retail Technology and ask is omni-channel retailing a reality for Irish businesses (Page 34), and we report on the launch of Eircode, Ireland’s innovative and imminent new postal code system (Page 48).

Kathleen Belton Editorial Director kathleenbelton@retailnews.ie

News 4 Retailers to pay the

price for war on tobacco.

5

BWG make offer to buy Londis.

6

Broad welcome for new alcohol legislation; Cross-border shopping on the rise.

The Retail News Interview 18 Retail Ireland’s new

Chairman Conor Whelan and Director Thomas Burke, highlight the big challenges facing the retail sector in 2015 and Retail Ireland’s plans to address them.

New Retail App 38 A new smartphone app, Reep Rewards, has massive advantages for consumers, brands and retailers.

48

32

7 7

Centra hits €1.5 billion milestone; €70m credit available for small businesses.

8

Irish food and drink exports reach €10.5 billion; Topaz acquires Esso Ireland; New CEO at FSAI.

10

Best Christmas for grocery market since 2010; Fines for UK supermarkets on the way; ICSC strengthens European Advisory Board.

Eircode 48 Eircode Business Retail Ireland: Monthly Update 32 Minister Bruton

publishes draft regulations for the grocery supply chain; Christmas trading matches predictions.

Development Director, Liam Duggan explains why the incoming postcode system will be beneficial for Ireland.

34

52 Retail Technology 34 Omni-channel retailing

is the buzz phrase for retailers looking to future-proof their market but is it a realistic and achievable aim? Plus we examine CBE’s new convertible express checkout.

18

Off Licence of the Year Awards 52 Redmond’s of Ranelagh

in Dublin was named the NOffLA Off Licence of the Year 2015.

On The Vine 54 Jean Smullen reports on the continued growth of Italian and Spanish wines on the Irish market.

REGULARS & REPORTS

Published by: Tara Publishing Ltd, 14 Upper Fitzwilliam Street, Dublin 2.

Managing Director: Patrick Aylward

Tel: (01) 6785165 Fax: (01) 6477127

Editorial Director: Kathleen Belton kathleenbelton@retailnews.ie

Web: www.retailnews.ie Email: kathleenbelton@retailnews.ie

Editor: John Walshe

Subscription to Retail News: e95 plus VAT Email: ciara@tarapublications.ie

Advertising: Brian Clark

johnwalshe@tarapublications.ie brian@tarapublications.ie

Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

Production: Catherine Doyle

Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

12 24 40 51 57 58

Industry News Easter Treats Paper Products Drinks News Market News Shelf Life

4|Retail News|January / February 2015|www.retailnews.ie

News

Retailers to Pay the Price for

War on Tobacco NEW licensing for the sale of tobacco products could cost retailers anywhere between €500 and €1,500 in annual fees. The annual license will replace the current one-off €50 registration payment for tobacco retailers.

“Over the last 18 months, when [Minister for Children and Youth Affairs, and former Health Minister] James Reilly talked about what this licensing could potentially raise in revenue, he mentioned figures that would equate to every retailer paying between €500 to €1,500,” Tara Buckley, RGDATA Director General, told Retail News.

In June, 2014, the Government approved drafting of new legislation in relation to the sale of tobacco products and non-medicinal nicotine delivery systems, including e-cigarettes. A public consultation on the legislation, which includes the prohibition of the sale of tobacco products from selfservice vending machines, concluded last month.

Vincent Jennings, CEO of the Convenience Stores and Newsagents Association (CSNA), described the consultation as a box-ticking exercise.

“A true public consultation is in advance of any policy determination:

it allows for various alternatives to be considered and costed,” he said. “They made a policy decision to bring in a licensing arrangement. We’re being asked to paint the house that has been given to us, rather than decide anything about the design of it.”

Under current tobacco control legislation, a retailer must register with the Health Service Executive (HSE) National Tobacco Control

Tara Buckley, RGDATA Director General.

Office, and pay a €50 registration fee. According to the Tobacco Control Office, retailer compliance levels with the registration are around 99%.

However, legislators argue the system allows multiple retailers, including supermarket chains, to make a single payment of €50, regardless of the number of outlets they have.

“If the registration required a retailer to pay €50 per shop, I’m not sure we would have an issue with that,” said Buckley. “But if that changes from a €50 registration fee to a €1,500 annual fee, we have a major issue.”

The proposed licensing contradicts recent attempts to reduce red tape for small businesses. The Government is in the process of introducing an online portal that helps retailers to apply for every required licenses, thus reducing regulatory burden.

“We had pledges from the Taoiseach, the Government, that this would be the best country to do small business,” Buckley continued. “They were going to tackle the multiplicity of licenses for the retail grocery sector.

We are told the portal is about to go live. Now another license is popping up.

There is no joined-up thinking in terms of why they need to introduce another

Retail News|January / February 2015|www.retailnews.ie|5

News licensing system and annual fee.”

Meanwhile, the UK is steamrolling ahead with the introduction of plain packaging. According to the UK’s public health minister Jane Ellison, standardised packaging will be introduced from May 2016. In Ireland, the policy proposal is going before the Health Committee on February 17. Retailers are concerned that the Government is proceeding without studying the effects of plain packaging in other countries.

“I’ve still to be convinced that there is any evidence that plain packaging has an effect on smoker perceptions,” said Jennings. “It certainly persuades people to buy cheaper brands. There’s no evidence it will bring about smoking cessation or prevent children from smoking.”

Deirdre Drennan, spokesperson for the National Federation of Retail Newsagents of Ireland (NFRN Ireland), said the Government should not rush to a decision. “We believe evidencebased policy is how decisions should be made,” she told Retail News. “We should wait longer to see how the market develops in Australia. The evidence that has come out so far shows plain packaging has fuelled the illicit trade. We believe Government should wait to see if this trend continues.”

Earlier this month, customs uncovered a €145m cigarette manufacturing ring operating in Ireland. “The reason the seizure was so large is due to the demand for the product,” said Drennan. “Criminals

would not bring in that amount of illicit tobacco if nobody wanted to buy it from them. Plain packaging is going to make it easier for counterfeiters to replicate brands.”

The introduction of plain packaging in Ireland may be some time away, however, as the proposals are bogged down in the European Commission.

Tobacco company, JTI Ireland has claimed that James Reilly, as Minister of Health, “ignored numerous Government and EU guidelines in an attempt to introduce legislation”.

A new report by EPS Consulting, commissioned by JTI Ireland, argues that the Department of Health’s plain packaging process was “fundamentally flawed”. In particular, the report argues that conducting a Regulatory Impact Analysis (RIA) so late in the decision-making policy cycle, a full four months after Government had taken the decision to legislate, indicates the process was merely a box-ticking exercise.

JTI Ireland General Manager, Igor Dzaja said that when the RIA did appear, “it did not adhere to Government or EU guidelines, paid little heed to the valid concerns raised by stakeholders during a brief period of consultation and the cost-benefit analysis was clearly not fit-for-practice.

The overall result is that the integrity, completeness and robustness of the policy-making process have been seriously jeopardised.”

Tobacco companies are not the only complainants. Late last year, the

Vincent Jennings, CEO of the CSNA.

US Chamber of Commerce lodged a formal complaint with the European Commission. “Because Ireland has a written constitution, and property is protected in the constitution, this will end up in court,” said Jennings. “Even if the Bill went through, there would be challenges to the law.”

Tobacco Free Ireland, the country’s policy document, sets a target for Ireland to be tobacco free by 2025.

Perhaps this is the true reason behind an expensive new licensing regime: it is designed to discourage retailers from selling tobacco altogether?

“There’s no doubt about that,” said Jennings. “They want to reduce the overall amount of outlets [selling tobacco]. This is commercial manipulation.”

BWG to Buy Londis?

JANUARY 23 saw the announcement that BWG Group had made an offer of €23m to acquire the trading business of ADM Londis. Londis’ Board members who are shareholders have confirmed that they intend to accept the offer in respect of their shares.

Completion of the offer is subject to certain conditions, including acceptance of the offer by the holders of at least 80% of the issued shares of ADM Londis and Competition and Consumer Protection Commission clearance.

If it were to go ahead, it would see BWG add Londis’ estimated 200 stores to its existing 1,175 SPAR, EUROSPAR, MACE and XL symbol stores throughout Ireland and the south-west of the UK. BWG has confirmed that it is committed to retaining and promoting the Londis brand and to investing in its future growth and development.

“We are excited about the opportunity

to grow the Londis brand in conjunction with our existing portfolio of market leading convenience brands,” commented Leo Crawford, CEO, BWG Group.

“Through our partnership with SPAR South Africa, BWG has ambitious plans for investment and expansion and we would warmly welcome Londis retailers into our business where they can be part of our future success.”

Commenting on behalf of Londis, Stephen O’Riordan, CEO, said, “At Londis we’re keen to continue a journey that has seen the group drive efficiency and service whilst delivering value for customers and protecting retailer margins. We believe that being part of a global business of scale would further enhance competiveness for consumers and franchisees. We are encouraged by BWG’s commitment to supporting the Londis brand and to investing alongside our retailers for continued growth.”

Leo Crawford, CEO, BWG Group.

Stephen O’Riordan, CEO, ADM Londis plc.

6|Retail News|January / February 2015|www.retailnews.ie

News Broad Welcome for New Alcohol Legislation THERE has been a broad welcome for the Government’s publication of the heads of the Public Health (Alcohol) Bill, which includes the proposed introduction of a minimum unit price for alcohol.

The National Off-Licence Association (NOffLA) has welcomed the publication of the Heads of the Public Health (Alcohol) Bill 2015. Commenting on the publication, Evelyn Jones, Government Affairs Director, NOffLA, described it as “an important day for communities and small businesses all across Ireland, and particularly those involved in the retail of alcohol”.

NOffLA has long maintained that this Bill is a vital tool in addressing social health and public order issues, while also encouraging a sustainable retail environment. NOffLA welcomed the proposed introduction of a minimum unit price as a very positive step, but warned that “the effectiveness of the measure is entirely dependent on the introduction of an appropriate price, which we believe must be €0.70 per unit of alcohol to have the required impact.”

The National Federation of Retail Newsagents also welcomed the legislation, with NFRN Ireland District President Peter Steemers noting how “This is a very welcome measure from the Government. Our members have long called for action to be taken on the sale of very cheap alcohol that has an enormous impact on our society.”

Alcohol producers were more cautious in their welcome for the Bill. The Alcohol Federation of Ireland (ABFI), the association which represents alcohol manufacturers and suppliers in Ireland, argued that a new era of engagement must prevail in order to bring about a real and sustained cultural change in patterns of alcohol misuse in this country.

“Drinks industry suppliers and manufacturers want to play a role in the development NOffLA Government Affairs Director, and introduction of Evelyn Jones.

evidence-based solutions that will fundamentally address alcohol misuse,” noted Ross Mac Mathúna, ABFI Director.

He welcomed the move towards statutory codes, noting however, that “legislation is not nimble enough to regulate modern communications”.

“We hope that today can mark the beginning of a new era of engagement, where Ross Mac Mathúna, ABFI all of the relevant parties, Director. from drinks manufacturers and suppliers, to publicans, the supermarkets, government departments and medical bodies can come together to devise and implement evidence-based solutions that will have a lasting impact on alcohol misuse in this country,” he concluded.

NOffLA commended the Government on its decision to introduce the structural separation of alcohol from other products under Section 9 of the Intoxicating Liquor Act 2008 with adequate enforcement power. “Structural separation will provide for the clear demarcation of alcohol from other grocery products so that they are not available to under-age purchasers,” said Evelyn Jones. “In addition, this measure will help to ensure that the purchase of alcohol is a conscious and informed decision, and not an impulse due to the strategic positioning of alcohol products in aisles and close to tills, which is in keeping with Minister’s acknowledgment that alcohol is no ordinary product.”

Cross Border Shopping on the Rise IRISH retailers are reporting a return to cross-border shopping, only now the flow of shoppers has been reversed. In 2009, towns such as Newry and Derry boomed as shoppers flooded across the border from the Republic. Now Northern shoppers are travelling south to avail of a weak euro.

“There is a pick-up in trade coming from the north,” Paddy Malone, from Dundalk’s local Chamber of Commerce, told Retail News. “I talked to traders over Christmas. All of them said Christmas was better than expected. There was a fair bit of Sterling in the till and we haven’t seen Sterling in the tills for a very long time.”

A new anti-austerity Government in Greece, and the economic process of quantitative easing, suggests the disparity between euro and Sterling is likely to remain.

“Is the euro going to get fixed in the short term? No,” said Malone. “In the medium term – 12 to 18 months – you’re looking at the same situation.

I won’t say the [cross-border] trickle will become a flood, but it will become stronger. There’s no doubt about that.”

Retail News|January / February 2015|www.retailnews.ie|7

News Centra Hits New €1.5 Billion Milestone

CENTRA has announced that it recorded retail sales of over €1.5 billion in 2014, a 3% increase on the previous year’s performance. Centra also revealed that it will add 380 jobs to the network this year, as 16 new stores are set to open in 2015.

Last year, Centra retailers invested €7m in store openings and refurbishment, adding 25,000 sqare feet to the Centra network.

Centra’s growth was underpinned by Pictured at the Centra Conference in Killarney are (l-r): Martin Kelleher, Managing Director, Centra; Alan increased Own Brand Jordan, Centra Retailer Chairperson; and Ian Allen, Centra Sales Director. sales, the introduction of its all day fresh food range, innovative products and and our retailers, clearly demonstrating that consumers services and delivering great value across all categories. recognise that Centra offers the best value, choice and Sales of the Centra Own Brand range rose by 14%, reflecting quality in the market”. the trend of consumers switching to own brand products in “It also places the Centra brand within the top 20 Irish recent years. brands by turnover, which is a huge accomplishment when Fresh food sales also drove growth, with the launch you consider that this has been achieved by the combined of Centra’s new range of gourmet sandwiches and efforts of 463 local businesses across the country,” Kelleher pizzas experiencing significant sales increases. Gourmet added. sandwiches sales rose 8%, while pizza sales increased “We plan to drive this momentum into 2015 by by 17% during the year. This was boosted by innovative continuing to differentiate Centra from the competition promotions, such as Centra’s 1 cent tea and coffee promotion by introducing new healthier ranges which will make it on budget day, with coffee sales rising 14% in 2014. easier for shoppers to pick up healthy options at any time Speaking at the brand’s National Retailer Conference of the day, investing further in our Own Brand and fresh in Killarney to over 463 retailers in attendance, Martin food ranges, whilst also focusing on rolling out new smart Kelleher, Managing Director of Centra, described Centra’s eCommerce technology services to give consumers the best performance as “a tremendous achievement for the brand retail experience in the market.”

€70m Credit Available for Small Businesses

LEADING global invoice finance provider, Bibby Financial Services Ireland has announced details of €70m in working capital facilities available for Irish businesses through invoice finance, a 70% increase on its 2014 credit facility availability. Bibby said its decision to make increased credit available to Irish businesses this year reflects both strong demand for alternative sources of finance, and deepening

evidence that economic recovery is underway.

Bibby’s invoice financing model supports businesses by giving them access to cash tied up in invoices. The facility is available to any business that sells goods or services and invoices customers in arrears.

“More and more Irish businesses are opting for alternative sources of financing like invoice finance to fund their businesses as it offers more flexible options for growth,” noted Ronan Horgan, MD of Bibby Financial Services Ireland. “We know it is difficult for SMEs to access finance and their financial advisors are increasingly making them aware of alternatives. Last year, we provided credit approved invoice facilities of over €41m, with business owners seeking working capital facilities ranging from €200,000 to €5m to cover day-to-day operation costs of their business. We see this demand continuing in 2015.”

Bibby Financial Services Ireland is part of the Bibby Line Group, the world’s largest independent invoice finance company that provides over €1 billion funding to over 7,000 SMEs globally every year.

8|Retail News|January / February 2015|www.retailnews.ie

News Irish Food and Drink Exports Reach €10.5 Billion BORD Bia has launched its Export Performance and Prospects Report, which reflects a 4% increase in exports for 2014 to reach a record high of almost €10.5 billion, the fifth consecutive year of export growth for the food and drink industry.

The strongest performing sectors were dairy products and ingredients, which exceeded the €3 billion mark (+3%), prepared foods (€1.8 billion, +8%) and seafood (€540m, +8%).

“The industry’s drive to broaden export reach to destinations outside of the EU is paying dividends with growth in emerging and international markets now driving export figures, offsetting the limited growth in our established premium EU markets,” noted Aidan Cotter, Chief Executive, Bord Bia. While it remains Ireland’s most significant export market, the share of exports destined for the UK eased slightly, though the value showed little change at €4.2 billion or 40% of export share. Stronger export values for beverages, prepared foods, mushrooms and poultry helped offset lower beef and dairy values. The value of exports to other EU destinations grew by 2% to reach €3.3 billion, equating to 31% of total exports reflecting largely static consumer price inflation across the Eurozone.

Welcoming the positive results, Minister for Agriculture, Food and the Marine Simon Coveney TD said that “since 2009, food and beverage exports have increased by 45% compared to Irish merchandise exports, which are 5% higher.

Our strategy for exports is clear and our pursuit of the targets set out in Food Harvest 2020 is relentless. The speed and determination the industry displayed in shifting focus to new and emerging markets in response to static price inflation in EU markets, and the severe restrictions in the Russian market, has been remarkable.”

The importance of beverage exports to the Irish economy was highlighted by the Drinks Industry Group of Ireland (DIGI). “With some of the most celebrated and

Pictured at the launch of Bord Bia’s Export Performance and Prospects Report are (l-r): Aidan Cotter, Chief Executive, Bord Bia, and Minister for Agriculture, Food and the Marine Simon Coveney TD.

internationally recognised brands exported from Ireland, our drinks exports are clearly a national success story,” noted Peter O’Brien, Chairman of DIGI. “Bord Bia’s report confirms this position, matching growth with a hugely positive outlook for 2015. We’d call on the Government to do everything in their power to support the industry so it can continue to build on current success, identify new markets for products and find innovative product solutions, which will in turn help foster further economic recovery in Ireland.”

In total, beverage exports put in a robust performance, growing by 1% in 2014 to €1.2 billion, with alcoholic beverages accounting for over 80% of beverage exports.

According to the research, Irish whiskey exports are the main driver of beverage export growth, with double digit growth recorded again in 2014, while cream liqueur was the second biggest beverage export after whiskey, accounting for 26% of exports, and Irish beer accounted for 19% of beverage exports, with craft beer exports continuing to rise.

Topaz Acquires Esso Ireland

New CEO at FSAI DR Pamela Byrne has been appointed as new Chief Executive of the Food Safety Authority of Ireland (FSAI) and will take up office in March 2015, following the retirement of Prof. Alan Reilly. Dr Byrne is currently Director of Regulatory Policy and Intelligence with Abbott Nutrition.

Having previously held senior positions in the Department of Agriculture, Food and the Marine, she has extensive experience of the food regulatory environment, as well as expertise in risk assessment and food safety management at both national and international levels.

THE parent company of Topaz Energy Limited today has agreed to purchase the Esso fuels and convenience store businesses in Ireland.

Under the agreement, the Topaz parent company, Kendrick Investments Limited, will purchase the shares of Esso Ireland Emmet O’Neill, CEO of Topaz.

Limited and its wholly owned subsidiaries, Ireland ROC Limited and Esso Ireland Manufacturing Company Limited. The deal includes 38 company owned service stations and the right to supply around 60 service stations owned by independent dealers. ExxonMobil’s Upstream, Chemical and Lubricants businesses in Ireland are not affected by the sale.

Emmet O’Neill, incoming Chief Executive of Topaz, said the deal underlines the commitment of Topaz to the Irish market, “We are an Irish company through and through and this deal demonstrates our commitment to supporting our position in this market. We look forward to welcoming Esso’s employees to the Topaz team.”

Completion, subject to the relevant regulatory approvals, is expected to occur in the third quarter of 2015. Employees will continue to be employed

by Esso Ireland and its subsidiary Ireland ROC and the companies will continue to operate under the new ownership structure.

10|Retail News|January / February 2015|www.retailnews.ie

News Best Christmas for Grocery Market Since 2010 THE latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending January 4, show the best Christmas for Irish supermarkets since 2010, as sales grew by 1.1%.

“Growing confidence in the economy meant shoppers relaxed the purse strings this Christmas, visiting the supermarkets more often in the seasonal period than last year,” Georgieann Harrington, Insight Director at Kantar Worldpanel, explains. “Perhaps unsurprisingly, festive shoppers reached for the treats, and sales of confectionery grew by 6%, crisps and snacks were up by 3% and soft drinks enjoyed a 2% sales growth.”

Competition for market share remains fierce, with less than 2 percentage points separating the big three retailers.

Tesco continues to hold the top spot with 25.4% and reported its best performance since May 2013 thanks to an increase

in customers.

Following closely behind is SuperValu, which holds 25% market share and enjoyed a 0.3% increase in sales.

Almost threequarters of all Irish households Georgieann Harrington, Insight Director at visited the Kantar Worldpanel. retailer in the past 12 weeks, with 52,000 new shoppers enticed through the doors by its value-for-money positioning. Despite a decline in footfall, Dunnes posted seasonal sales almost exactly in line with last year.

Elsewhere in the market, Lidl and Aldi topped off an excellent year with sales growth of 15% and 12.2% Total Take Home Grocery - Ireland Consumer Spend respectively. A strong Christmas extends an impressive run that has 12 Weeks to 05 Jan 2014 12 Weeks to 04 Jan 2015 change** seen each retailer enjoy double digit %* %* % sales growth for 14 successive months.

Total Grocers 100.0% 100.0% 1.1 “The battle for market share looks Total Multiples 88.8% 89.2% 1.6 set to continue well into 2015. With Tesco 26.2% 25.4% -2.0 the top three retailers separated by Dunnes 23.7% 23.5% -0.1 the narrowest of margins, it really is SuperValu 25.2% 25.0% 0.3 all to play for in the coming months,” Total Discounters 13.7% 15.3% 13.5 noted Georgieann Harrington.

Aldi 7.2% 8.0% 12.2 Grocery inflation stands at Lidl 6.5% 7.4% 15.0 Other Outlets** 11.2% 10.8% -2.1 1.8% for the 12-week period ending January 4, 2015, down marginally *= Percentage Share of Total Grocers **= Includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers And Cross Border shops from 1.9% last period.

Fines for UK Supermarkets On the Way MEASURES that will grant the UK’s Groceries Code Adjudicator (GCA) the power to fine UK supermarkets that have breached the Groceries Code up to 1% of their annual UK turnover are on the way, joining existing powers to issue supermarkets with recommendations as to their future conduct, and to ‘name and shame’ those that have breached the Code.

The Code imposes on the supermarkets an overarching principle of fair dealing with their direct suppliers; and includes, amongst other things, specific provisions governing terms of supply, timing of payments, marketing and promotional costs, and payments as a condition of being a supplier. The Code does not govern issues relating to pricing.

Tesco could be amongst the first to feel the GCA’s wrath, after the Adjudicator launched an investigation into the retailer’s over-profit statement of September last. The GCA holds a “reasonable suspicion” that the Code has been breached by Tesco plc by some of its practices associated with the profit over-statement announced by the company in September 2014.

ICSC Strengthens European Advisory Board THE International Council of Shopping Centers (ICSC) has strengthened its European Advisory Board with the addition of two members: Laurent Morel, Chairman of the Klépierre Executive Board (left), and Michel Dessolain, President of the French Council of Shopping Centers (CNCC), Co-CEO of mfi AG, and Chief Strategy and Innovation Officer at UnibailRodamco (right).

12|Retail News|January / February 2015|www.retailnews.ie

Industry News CENTRA HONOURS EMPLOYEES THE inaugural Pride of Centra Awards took place recently in Croke Park, where a selection of outstanding Centra employees were honoured for their commitment and dedication shown in the workplace. The awards were established to acknowledge the Centra employees who consistently live and demonstrate the Centra brand values each and every day. Just 10 Centra employees were selected as finalists out of a total of over 10,000, demonstrating the significance of their achievement. The overall winner was Brenda Donagher from Daniels’ Centra, Portarlington, Co. Laois, who is pictured receiving her award from store owner Dermot Daniels. Brenda was a stand-out winner for her remarkable pride, enthusiasm, and thoughtfulness in everything she does. “Throughout our stores we have fantastic people who are all dedicated to delivering ‘Service Excellence’, a very high standard of customer service and local community engagement,” noted Matt O’Callaghan, Human Resource Director, Centra. “We are very grateful to all our employees but in particular the finalists who made it to the inaugural Pride of Centra Awards.”

Great Tasting Addition to Food & Hospitality Ireland IN 2015, the Guild of Fine Food will be partnering in the first-ever Speciality & Fine Food Fair Ireland, which is taking place alongside Food & Hospitality Ireland 2015.

Running on September 16 and 17, 2015, at the Citywest Events Centre, Dublin, the Speciality & Fine Food Fair Ireland will host the Great Taste Pavilion, showcasing the finest in speciality foods from a variety of Great Taste winners over the last three years. The Guild of Fine Food is highly-regarded for its organisation of the ‘Oscars’ of the food world, the Great Taste Awards,

Fyffes Support Summer Camps BANANA importers Fyffes are to renew their support for Starcamp, Ireland’s nationwide children’s performing arts network, which plans to host summer camps in 116 locations across 25 counties next July/ August, designed to build self-esteem in boys and girls aged 4-12 through song, dance, drama and games. Fyffes Sales and Marketing Manager Emma Hunt-Duffy praised Starcamp for what she said is “a very worthy venture that is in line with our continued commitment to promoting healthy eating and an active lifestyle across all age groups.” See www.starcamp.ie for more information.

which over the past two years held judging sessions in both Dublin and Belfast. “This ‘Great Tasting’ new addition to the show will further build on Food & Hospitality Ireland’s growing status as the trade expo for artisan producers, showcasing their products on a national stage,” noted Toby Wand, Managing Director of Fresh Montgomery, pictured (right) with Donogh Raftery from Applewood Farm Produce, and Caroline McCusker, Fresh Montgomery. See www.foodhospitality.ie for more information.

New Editors at Independent News & Media INDEPENDENT News & Media has announced the appointment of Editors to the Irish Independent and the Sunday Independent, the largest selling daily and Sunday newspapers in Ireland respectively. Fionnan Sheahan (top), Group Political Editor, has been appointed Editor of the Irish Independent and Cormac Bourke (bottom), Executive Editor, Irish Independent has been appointed Editor of the Sunday Independent.

SNICKERS® You’re Not You When You’re Hungry delivered amazing 22% growth in 2013* New TV ad featuring an angry GREMLIN™ that everyone’s bound to love, plus extensive Outdoor, Online and In-Store support Instant text-to-win consumer promotion with 100s of cinema tickets to be won High-impact in-store POS for maximum visibility

STOCK UP NOW AND GET READY FOR RIP-ROARING SALES! www.snickers.ie

* Nielsen Total Chocolate INCL Seasonal Value Sales 2012/2013 YTD 2 November 2014

GREMLINS: TM & © Warner Bros. Entertainment Inc. (s15)

®SNICKERS is a registered trademark. ©Mars 2015

14|Retail News|January / February 2015|www.retailnews.ie

Industry News LONDIS LAUNCHES NEW LOOK PRIVATE LABEL RANGE

LONDIS has unveiled the Group’s “New Look” private label range of products, which are launching in all stores over the coming weeks. Designed to embody all that is great about the Londis brand – local, friendly, honest, quality and value for money – the complete redesign of the Londis private label range brings greater coherence and consistency to close to 200 own-brand products with a vibrant new identity across the entire range. “The launch of our new look private label range is a significant milestone for the Group and our retailers,” said Londis Chief Executive, Stephen O’Riordan.

“With our new designs, consumers can quickly and efficiently recognise Londis private label products, helping them to stretch their budgets to enjoy even more value for money.”

MRPI Creates 80 Jobs MUSGRAVE Retail Partners Ireland are to create 80 new jobs as a result of an €8.2m investment at the company’s Fonthill depot in Dublin. The new roles in management, warehouse and driving positions will bring the total headcount at the site to 335 permanent staff. The 57,000 square feet expansion will boost Fonthill’s capacity by 60% when it is completed in July. “This significant investment in our Fonthill depot is a major milestone for our business in order to ensure we can meet our future capacity needs by strengthening our supply chain and logistics operations.

The expansion will allow us to reach the site’s full potential, ultimately enhancing the shopping experience at SuperValu and Centra stores by guaranteeing greater availability of produce on a daily basis,” noted Martin Kelleher, Managing Director, Musgrave Retail Partners Ireland (pictured).

Nicky Scores for Jack & Jill PICTURED are Jonathan Irwin, Founder & CEO of the Jack & Jill Children’s Foundation, with Brian Clinton, Country Sales Manager for the Sofidel Group, presenting the clock of hours to Jack & Jill - 2,200 home nursing hours were donated in 2014. Nicky, one of Ireland’s largest consumer tissue brands, partnered the Jack & Jill Children’s foundation in 2014. Through the support of customers and consumers, Nicky was able to donate more than 2,200 hours of home nursing care to the families of the foundation.

Subway Celebrates 2,000 Stores THE Subway brand is celebrating the opening of its 2,000th store in the UK and Ireland, with a new store in the Jarman Leisure Park in Hemel Hempstead.

The milestone opening highlights the more than €263m (Stg£200m) investment that Subway franchisees contribute to their local economies, alongside providing over 20,000 jobs in stores across the UK and Ireland.

Bord Bia Launches €400,000 Fund for Small Food Businesses BORD Bia have announced a new financial support, entitled the ‘Step Change Programme’, for small food, drink and horticulture businesses. The details of the €400,000 fund were shared with over 170 small businesses gathered in Dublin recently for Bord Bia’s fifth annual Small Business Open Day. The grant scheme is aimed at companies, with a turnover between €100,000 and €5m, embarking on a new project to take their business to the next level. In 2015, Bord Bia expects the ‘Step Change Programme’ will benefit at least eight high potential Irish businesses with individual grants of up to €50,000. Pictured at the Open Day were Aidan Cotter, Chief Executive, Bord Bia; Minister of State at the Department of Agriculture, Food and Marine, Tom Hayes TD; and Sinead Gilchrist from Manning’s Bakery, Dublin. For more information, visit www.bordbiavantage.ie

ent on the was much excitem negar deliveryThere ided with a dll co er wl tra t sal a gh seas today as us mix. The ulting in a fishlicio negar shipment res terprise and ls, the Star Chip En ptains of the vesse their new th wi k pin d re pickle Hally e Northern Sole, we ian sic mu n. Young rock avour combinatio lead role in a th wi ak bre st big utt has had his fir ippy Chippy st end musical Ch he contemporary we “I’d like to d sai he ed iew interv Bang Bang. When anything” kle tac th s I know wi ay tanks a lot my fan

!

K C A B E THEY’R Retro a f o n r u t e r The scuit i B y r u o v a S e t Favouri

the police said: “ the facts – anyfin

A local aquarium shark! Keepers the 1 ton beast. I transferred to t news a man said and for the love shell-tering”

Fisherman’s d vinegar delive high seas toda vinegar shipm captains of the the Northern S flavour comb Butt has had the contempo Bang Bang. say tanks a lo

hat a catch Holy Mackerel! W s recorded the Will Katchum, ha , an rm he fis en A ke He hooked ry! hto fis in rel haul biggest ever Macke n. He said so ile on a trip with his en he a sudden his mega fish wh of all en wh ught he escaped wh sea at g day ton beast. It is tho rring ly 1 he Ho the on ht “It was a quiet fishin Up ug k. tho I tan out of control, red to the exercise fer ns g it tra n, s ttin so lle wa s mu Hi I felt my rod spin out!” e have all been letely caught me may news a man said “W the he the off ere Mackerel! It codp ip wh ch nk a thi in, n’t e of cod ca reel his catch over and for the lov Junior helped him as salt trawler herman’s delight Fis g” rin -te !! ell ck sh be old blo Holy Macke ery with vinegar deliv ay es s tod im llid s co cla sea te h iga A keen fishe hig est citement on the were called in to inv There was much ex sterday. ar shipment The Frying squad ye eg biggest ever op vin sh a ip th ch wi d al at a loc t trawler codllide the sal at of a n as see ins of fishy behaviour be pta ca to his mega fis s e wa cious mix. Th , but not a sole resulting in a fishli erson for Two fish got battered the Northern d esp “It was a qu an ok sp se A pri nt. ter ide En eged inc ls, the Star Chip vour iew fla sse ve rev w d ne the plaice of the all an I felt my r ir er the ov t th d pink wi need to mulle Sole, were pickle the police said: “ We ge” Mackerel! sta s thi at ble ssi po still combination. the facts – anyfin is Junior help st fir t los his a d ha for s old block!! try Hally Butt ha is scaling the coun ice ung rock musician ry west pla Yo ora A local aquarium n’t mp ca nte d co an d the ke in d role shell- shoc big break with a lea shark! Keepers are Bang. When The Frying when he was ippy Chippy Bang thought he escaped Ch is It al . sic ast be mu the d ton a lot my 1 en ng ks rri the he tan of fishy b on say Up to e k. lik tan exercise iewed he said “I’d er erv ov int it g transferred to the ttin Two fish g lle th ” wi mu tackle anything wler collides e have all been fans I know with delight as salt tra recorded the news a man said “W he may be s ’s the plaice ha an ere , the rm wh um on he t nk tch Fis en thi Ka em n’t , Will cod ca was much excit oked ere ho Th A keen fisherman He ery and for the love of liv ry! the police a de hto ar th fis eg wi vin rel haul in wler codllided biggest ever Macke shell-tering” son. He said today as a salt tra the facts s his e y th Th sea wi h x. p mi hig tri us a cio on ulting in a fishli dden mega fish while big su res a t st his fir en of all his ipm d d sh en ha an ar wh s eg se ha sea vin terpri g day at ian Hally Butt ls, the Star Chip En “It was a quiet fishin Young rock music thought Holy ry west end A local captains of the vesse k with their new out of control, I in the contempora e in pin d sp rol d kle rod lea pic a n, re my so th t we wi s fel le, Hi I So break t!” shark! K ou ern rth me .

No ht ng ug the Ba letely ca ippy Bang the n. off tio Mackerel! It codp ip ch ina musical Chippy Ch a mb the 1 ton co in, e flavour reel his catch Junior helped him orded the transferr rec st s ed fir ha , his um d tch ha , Will Ka Hally Butt has ck!! ed blo ian ok sic old ho mu A keen fisherman He k news a m st roc ry! id g we Youn contemporary rel haul in fishto He said th a lead role in the biggest ever Macke n. wi and for so n ak en he his bre W th . wi big ng p Ba tri ile on a s of y Chippy Bang en im ipp dd ., cla su Ch a te his mega fish wh al of iga shell-te sic all est ly my mu en inv lot end called in to say tanks a g day at sea wh rying squad were he said “I’d like to “It was a quiet fishin ught Holy yesterday. Two ed tho op I iew on, sh ol, erv ip ntr int ch co al loc of a out the tackle anything” son, fishy behaviour at I felt my rod spin Young le was to be seen at fans I know with ht me out!” His ttered, but not a so ba It codpletely caug t the ! go rel the for h ke fis on off ac ers M ip ch break w esp a ok ms sp in, A tch nt. ca ide his inc l ree plaice of the alleged ! What a catch review the d Junior helped him rel an ke musica er ac the ay. ov M t ed ly lle Ho ord mu rec ed to Katchum, has Foods, police said: “ We ne old block!! fisherman, WillFlanagan’s ed n at this stage” en ok at ke ho A ble He ssi ry! po ll hto sti fis ul in facts – anyfin is A kee ever Mackerel ha estigate claims for biggest n. He said D3 Riverview were called in to inv p with his soPark, a triBusiness lost on y. a ile rda for wh ste The Frying squad h ye try bigges fis un op en co ga sh iew dd su his me is scaling the at a local chip at sea when all of a A local aquarium fishing dayRoad, can’t plaice of fishy behaviour be seen at iet d to his m qu an s ly a d Nangor Dublin 12 s wa Ho ke wa le oc ht so “It sh a ug t tho ell no sh , but was out of control, I for he ark! Keepers are in on sh en sp ers wh Two fish got battered rod esp “It wa ed n, ok ap my so sp t esc A s I fel thought he eged incident. ht me out!” Hi the 1 ton beast. It is the plaice of the all It codpletely caug and review on herring the I felt ! er Up rel ov lost t k. ke t ac lle tan M off mu ise ip to ch erc ed a ne his catch in, it over reelflanagansfoods.ie nsferred to the ex g tra ” him ttin the police said: “ We ge d lle Mack sta lpe s mu s he im r en thi laice cla be at nio W: www. te Ju e have all still possible d in to investiga news a man said “W the facts – anyfin is Junio g squad were calle where he may be y. yin nk was rda Fr e thi ste Th ye n’t ca op d sh co ip E: info@flanagansfoods. ie ur at a local ch a lost and for the love of vio for ha old b be try at un n hy co g the fis see of be the is scaling t not a sole was to shell-tering” A local aquarium t battered, bu for and can’t plaice fish goDirect: over on d o ke ers Tw oc esp sh Office +353 1 450 6100 ok sp ell A sh eged incident. es with shark! Keepers are The aped when he ay be the plaice of the all and review salt trawler collid is thought he esc need to mullet over rman’s delight as ng he We rri Fis “ he d: the 1 ton beast. It on sai of fi e Up lic k. po tan ” the ge ise sta erc s ex thi at the ble vinegar delivery yfin is still possi lletting it h seas today was transferred to an Two mu hig – ts en the be fac on all t the en ve ha em d “We ere was much excit ipment may sh Th he ar the news a man sai ere eg the t wh vin los a nk with a th thi ntry for od can’t llided wi

nd • Iconic 1980’s bra brought back by popular demand

16|Retail News|January / February 2015|www.retailnews.ie

Industry News NEW COCA-COLA LIFE LAUNCHES

BRAND new from Coca-Cola, Coca-Cola Life is a lower-calorie drink which is sweetened from natural sources. Sweetened with a blend of sugar and stevia leaf extract, both naturally-sourced, a 330ml can of Coca Cola Life contains a third less sugar and a third fewer calories (89 calories per can). Stevia is a zero calorie sweetener derived from the leaves of the stevia plant. “We’re very excited to add Coca-Cola Life to our portfolio and bring it to consumers in Ireland,” explains Jon Woods, General Manager, UK and Ireland. “We’re committed to responding to the changing lifestyle choices of our consumers, offering them more low- and zero- calorie options, which is why Coca-Cola Life is a great addition to our portfolio of great tasting and refreshing drinks.”

Volkswagen Drives IRFU Partnership VOLKSWAGEN recently handed over a brand new fleet of Volkswagen vehicles to the IRFU as part of their sponsorship as official car supplier to the IRFU. The fleet of 60 cars includes the new eighthgeneration Volkswagen Passat, which has just gone on sale. Pictured at the handover are (l-r): Marty Moore; Tiernan O’Rourke, National Corporate Sales Manager, Volkswagen; Paul O’Sullivan, Head of Marketing, Volkswagen; Tommy O’Donnell and Simon Zebo.

Moy Park Tees Off as an Official Sponsor of the Irish Open MOY Park has become an Official Sponsor of the 2015 Irish Open, hosted by the Rory Foundation, which takes place at Royal County Down Golf Club from May 28-31. “We are delighted to be an Official Sponsor of the Irish Open again this year.

This will be the first time in 76 years that the Irish Open has been played at the world famous links in Newcastle, Co. Down, and only the second time in the last 60 years that Northern Ireland will host the event,” noted Alan Gibson, Moy Park UK and Ireland Director, pictured (centre), with James Finnigan, Commercial Director, Irish Open (left), and Andrew Nethercott, Moy Park Director of Brand Marketing.

New Finance Director at Barry Group BARRY Group is delighted to announce the appointment of Paul Fitzgerald to the position of Finance Director. Barry Group Managing Director Jim Barry made the announcement at a celebration dinner for the company’s 60th anniversary in business. Paul joined the Barry Group from Keary Motors in 2004 as a Financial Manager. His steadfast dedication and strong performance saw him assume the role of Financial Controller in May 2006, before being appointed Chief Financial Officer in March 2014. He takes over the role of Finance Director with immediate effect.

KITKAT Celebrates The Breaks

NESTLÉ Confectionery’s flagship brand KITKAT is to launch a ground-breaking new marketing campaign for 2015. The ‘Celebrate the Breaks’ campaign will feature a host of innovative activity from the brand, ranging from new products to advertising campaigns. The KITKAT brand is synonymous with being the perfect snack to eat whilst having a break. Celebrate the Breaks recognises that no two individuals are the same, so why should their breaks be? The campaign centres on celebrating each individual’s unique break moment, whether it’s having a cuppa, socialising, checking Facebook or simply doing nothing.

Launching in February, a high profile TV and digital advertising campaign will bring the concept to life, while the brand will also be offering consumers a new flavour. KITKAT Toffee Treat is available as a limited edition 4-finger pack, as well as a permanent 2 Finger 8-pack.

SMOKING KILLS Irish Government Warning

18|Retail News|January / February 2015|www.retailnews.ie

The Retail News Interview

Pictured are (l-r): Conor Whelan, Retail Ireland Chairman, and Thomas Burke, Director.

Putting Retailers First The new men at the helm of Retail Ireland, Chairman Conor Whelan and Director Thomas Burke, highlight the big challenges facing the retail sector in 2015 and Retail Ireland’s plans to address them.

“HAS the Government done enough to support retail? The simple answer is ‘no’.”

The voice is that of Conor Whelan, Retail Ireland’s new Chairman and MD of Eason, who, with more than two decades of experience in BWG Foods, Fresh Opportunities Ltd and Eason, is perfectly placed to comment on the state

of the Irish retail sector.

“While we welcome the establishment of the Retail Consultation Forum and last year’s reasonably consumer friendly budget, we need more to ensure that retailers are sufficiently confident to employ greater numbers, open new outlets and invest in the future,” Whelan continues. “We are moving in the right direction but there is more to do: we need concrete initiatives and actions that will deliver tangible results.”

His words are echoed by Thomas Burke, who was appointed Director of Retail Ireland in November 2014. “The Retail Consultation Forum is a very positive development and it is up to us as members, along with the Government and other stakeholders, to make sure that it’s effective and that it works for retailers. It is a format that can deliver and we are happy to play our part in it.”

Whelan points out that retail is the biggest private sector employer in the country, with some 275,000 staff, and also has the biggest potential to create jobs. “We estimate that there are upwards of 40,000 potential new jobs to be created in retail if the big issues are addressed.”

Retail News|January / February 2015|www.retailnews.ie|19

The Retail News Interview it is promising. We are optimistic that for the first time we are starting to see a sustained recovery for retail as we Retail Ireland are already working move forward into 2015.” towards Budget 2016, where they So is the worst over for Irish will call on the Government to further retailers? reduce the tax burden on consumers.

“We all want to believe that the worst is over,” admits Whelan.

“We have had 12 months of consecutive increases in retail sales, which given what has gone before, has to be seen as positive. But those increases are extremely modest and come off the back of very significant declines. I don’t think any economist will be predicting a dramatic increase in consumer spending in 2015. While consumer sentiment is positive, the lag between sentiment and retail activity is quite pronounced.”

Describing himself as an economic realist, the Chairman believes that “the next two years will be challenging, just hopefully not as challenging as the previous two years”.

The biggest challenges facing the sector in 2015 are “legacy issues that we have inherited from the Celtic Tiger years”, Whelan opines, including the problem of Ireland’s high business costs, in particular upward only rents, commercial rates and employment costs.

Key Policy Areas On the latter point, Whelan stresses These issues are Retail Ireland’s key policy areas for the that “wage expectations in certain sectors are unrealistic. year ahead and include: town centre regeneration, new It’s important that we keep expectations balanced and regulations for the grocery sector, access to credit for SMEs, realistic.” upward only rent reviews, commercial rates, Town Centre Regeneration the illicit trade and the high costs of doing Retail Ireland frames its policies business in Ireland. by establishing working groups The first and most important area, of its members, concentrating on however, is the general performance of the a particular issue, such as the “If you have a rent retail sector. “This is vital, not just in terms illicit trade in fuel and tobacco, of topline macro-data like the CSO delivers, that is unsustainable, or its latest working group, which but to drill down into that and provide is focused on property issues like a modest 2% increase rent and rates and the potential in-depth analysis on specific sectors within the retail industry,” Burke explains. regeneration of town centres. in revenues is not To that end, Retail Ireland is launching “Some of our towns have really a new quarterly publication, the Retail struggled in the recession, going to make it Monitor, which will do just that, according even more than our cities,” to the Director: “It will provide an sustainable overnight. Burke notes. “While our cities explanation as to why certain sectors of are starting to recover and the Unfortunately, it will retail are performing well and why others general economy has started to may not be faring quite so well. This will pick up again, some of our town be hard to see that be a very valuable insight into the various centres are stuck in a state of retail sectors and not just cold, hard with empty shop there won’t be further depression, numbers.” units, which aren’t great places Speaking of those numbers, however, to do business and aren’t great retail casualties Retail Ireland estimate that over the last places for the consumer. The six years of declining sales, the retail sector challenge for us is to deliver in the coming 12 lost 25% of its value. “No business escaped options for government and for months, as the issue unscathed in terms of their cost base or local councils to help improve our even headcount,” Burke opines. “Retail town and city centres around the of unsustainable businesses have felt a lot of pain over the country.” last six years and we have a long way to go Indeed, the regeneration of rents results in to recover. We expect figures for 2014 to be town centres is a key concern 2% ahead of 2013 but that is still a long way for the aforementioned Retail examinerships and away from where we were back in 2007. It Consultation Forum, the closures.” is modest growth, from a very low base, but government-led forum which is

20|Retail News|January / February 2015|www.retailnews.ie

The Retail News Interview chaired by Minister for Business and Employment, Ged Nash TD. “City and town centres are performing significantly behind outof-town centres and not enough is being done to promote city and town centres as places to spend time from a consumer perspective,” Whelan argues.

One of the challenges Conor Whelan, MD of Eason, and Retail facing any Ireland Chairman: “We need concrete potential initiatives and actions that will deliver tangible changes to results.”

Government policy or even legislation is the fact that there are so many stakeholders involved, including national government, the local authority, the Department of the Environment and other interest groups such as local chambers of commerce, retail groups etc.

“There are a lot of stakeholders involved and the agenda is exceptionally broad,” admits Whelan. “I’m a great believer in tackling two or three issues well rather than casting the net over 20 issues and not delivering on any of them. We need to decide what are the key areas which we can influence and make progress on, taking a pragmatic approach to it.”

Retail Ireland are eagerly awaiting the report from the Joint Oireachtas Committee on Jobs, Enterprise and Innovation into the future of town centres, which they hope will be made available soon.

Promoting Retail as a Career ONE of Retail Ireland’s key tenets is in the area of training and education.

“We believe that promoting the retail sector as a career choice as distinct from a job only is vital,” explains Conor Whelan, Retail Ireland Chairman. “This is a key priority for Retail Ireland, going forward.”

Retail Ireland are directly involved in the design, development and delivery of structured training programmes for a host of levels within the retail sector, delivered through the Retail Ireland Skillnets programme, which includes QQI certified training, as well as a Retail Management Degree programme.

“We want to show people that there is a clear and well defined career path within the retail sector,” sums up Thomas Burke, Retail Ireland Director, “and we want to keep these qualified people in the sector.”

numbers are a little distorted. The Irish economy won’t function without access to credit and many of our members are viable and profitable businesses but they are getting caught up in credit issues.”

Retail Ireland is calling on the Government to ensure that through the state’s pillar banks, small and medium enterprises can get access to vital credit streams.

Grocery Regulation One of Retail Ireland’s key focuses remains the grocery sector, particularly when it comes to regulation. This year, that includes the Public Health (Alcohol) Bill and new regulations under the Competition and Consumer Protection Act 2014. The Department of Jobs, Enterprise and Innovation is currently conducting a public consultation on the introduction of these regulations, which seek to regulate the relationship between suppliers and retailers.

Retail Ireland are in the process of formulating a submission to this end. “Initial indications suggest that it is quite sensible in its approach, but it is early in the process and we look forward to participating fully in the consultation,” admits Burke.

Access to Credit Access to credit remains a key concern for some retail businesses, particular SMEs. “There is still a blockage in the system, which is a big concern for smaller retailers,” stresses Burke. “The numbers being bandied around would suggest that loan approvals are over 90% but a lot of loan applications don’t even get into the system, so those

Retail Ireland Director, Thomas Burke: “Retail businesses have felt a lot of pain over the last six years and we have a long way to go to recover.”

Say hello to Clover : the future of retail.

™

Only Clover™ can offer you: • An integrated till and card terminal, meaning no more double entries.

• An all in one hardware, software and support solution, giving you value and peace of mind.

• Access to a revolutionary App market, helping your business grow.

• Next day replacement warranty so you’re never off line for long.

• No upfront spend, so it’s surprisingly affordable.

Transform your business today. Call us on 01 2182100 to find out how and quote ‘Clover14’ for your free demonstration.

“It’s flexible enough to adapt as our business grows.”

Café Bliss

“Who knew I sold more steak on Tuesday? I do now, thanks to Clover.”

CorrigansButchers

“From producing reports to building a database, Clover does it all.”

MoMuse Jewellers

Search AIBMS CLOVER © 2015 First Merchant Processing (Ireland) Limited trading as AIB Merchant Services. The Clover trademark and logo are owned by Clover Network, Inc. a First Data company. All Rights Reserved. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners. First Merchant Processing (Ireland) Limited is a joint venture between Allied Irish Banks, p.l.c. and First Data Corporation. The joint venture is a separate legal entity from Allied Irish Banks, p.l.c. and its subsidiary companies.

“AIB” and the AIB logo are the registered trademarks of Allied Irish Banks, p.l.c. and are used under licence by First Merchant Processing (Ireland) Limited. First Merchant Processing (Ireland) Ltd, trading as AIB Merchant Services, is regulated by the Central Bank of Ireland.

22|Retail News|January / February 2015|www.retailnews.ie

The Retail News Interview The New Team Conor Whelan replaced Frank Gleeson as Chairperson of Retail Ireland in November 2014. Managing Director of Eason since 2009, Conor has extensive experience of the retail sector, including Managing Director of BWG Foods for nine years.

Retail Ireland Director, Thomas Burke joined Retail Ireland from the Alcohol Beverage Federation of Ireland (ABFI) in November 2014.

Thomas first joined Ibec in 2005 when appointed as Executive with special responsibility for Economic Affairs with Food and Drink Industry Ireland (FDII). He joined ABFI in March 2012, where he held the role of Senior Executive with responsibility for the Irish Brewers Association.

Illicit Trade Another issue which remains on Retail Ireland’s agenda is the illicit trade, including fuel and tobacco. “Revenue have done some great work, with some significant seizures, but there is more to be done because it is a huge loss to the exchequer and to individual retailers,” Burke argues. “These are criminals who are breaking the law and should be clamped down on.”

One of Retail Ireland’s key focuses remains the grocery sector, particularly when it comes to regulation.

“Without consumers starting to spend again, we won’t have a vibrant retail sector and this will have a detrimental impact on the wider economy.”

Labour Costs Retail Ireland continue to call on the Government to reverse the changes made to the PRSI regime in Budget 2014, when the Employers’ PRSI rate of 4.25% on lower paid workers, which had been introduced as part of the Jobs Initiative to encourage employment, returned to 8.5% “The high Employers’ PRSI rate remains a significant barrier to employing more people in the retail sector,” explains Burke. “As long as that high rate of Employers’ PRSI remains, employers will be reluctant to take on more staff as it is so expensive to do so.”

Upward Only Rents The spectre of upward only rent reviews has not gone away, with many retail businesses around the country locked into paying unsustainable rents, which are often twice the current market rent, according to Whelan.

Can any progress be made on this issue? The Chairman is not optimistic. He feels that Senator Feargal Quinn’s bill on the issue is “highly unlikely to get an airing”.

“The reality is that we would have been more hopeful when this Government came into power,” Whelan confesses. “But the legacy rent issue wasn’t delivered on and as a result, we have had numerous business failures

or examinerships, which then resulted in rents being renegotiated with the relevant landlords. If you have a rent that is unsustainable, a modest 2% increase in revenues is not going to make it sustainable overnight. Unfortunately, it will be hard to see that there won’t be further retail casualties in the coming 12 months, as the issue of unsustainable rents results in examinerships and closures.”

Local Authority Rates Another bugbear for cashstrapped retailers is the high cost of commercial rates throughout Ireland. “Local authorities can’t squeeze retail anymore,” insists Whelan. “You just have to look at vacancy rates across the country. We need an innovative approach by local authorities to provide incentives for occupation of vacant premises.”

Burke agrees: “If you give a break to retailers, and encourage people to spend money in shops in towns and cities around the country, that has huge knock-on benefits for the local economy, and for the local authority themselves.

But they have to see the bigger picture.”

It may be only February, but Retail Ireland are already working towards Budget 2016, where they will call on the Government to further reduce the tax burden on consumers.

“It’s a well-worn mantra but we need to get more money into people’s pockets,” stresses Burke. “Budget 2015 was a good first step in that process but it’s only a minor step in the right direction. We will be calling on Government to reduce the tax burden to give people more disposable income and to try to encourage them to get out and spend. Without consumers starting to spend again, we won’t have a vibrant retail sector and this will have a detrimental impact on the wider economy.”

Strangford Lough, Co. Down

Rich pastures mean rich pickings.

Northern Ireland is known for its stunning landscape, but the land is rich and productive too.

The combination of a temperate climate and our dedication to farming excellence and innovation means food produced in Northern Ireland wins awards for quality the world over.

fields & yields

We can help you access over 400 food and drink manufacturing companies, so feel free to call anytime to discuss any sourcing or NPD requirements you may have.

Whetted your appetite? Visit www.buynifood.com Shane McArdle, Food Business Development Director, Republic of Ireland & International Markets E: shane.mcardle@investni.com Mob: +44 (0)7817 173516 Drew McIvor, Food Business Development Executive, Republic of Ireland E: drew.mcivor@investni.com Tel: +44 (0)28 9069 8113

www.buynifood.com

INNOVATION THROUGH THE GENERATIONS “Barry Group celebrates its 60th year in business this year. It’s been an amazing journey from when we took those first steps back in 1955 to what we have built today.”

- Managing Director Jim Barry.

Barry Group puts the customer at the core of everything we do. Our committed and experienced team strive to put every available resource at a retailer’s disposal.

By working with Barry Group, you will be at the forefront of industry innovations and have 60 years of experience supporting you.

So get the benefits of Barry Group working for your business today.

For more visit barrygroup.ie.

24|Retail News|January / February 2015|www.retailnews.ie

Easter Treats

Egg-citing Easter Ahead Irish consumers’ love affair with chocolate shows no signs of abating this Easter.

IRISH chocolate lovers are set to feast on approximately 10m eggs this Easter, which translates as more than a thousand tonnes of chocolate. In recent years, that has meant Irish consumers ‘shelling’ out more than €36m on Easter eggs.

It is estimated that around 70% of Irish households purchase Easter confectionery products, and perhaps surprisingly, children’s eggs account for just 8% of the total, with products targeting teenagers and adults accounting for a massive 60% of sales.

Easter Eggs performed strongly in 2014, with sales up by +5.2% (Source: Nielsen Total Scantrack (inc Dunnes Estimate), Year to April 2014). The number of shopping occasions is also growing, with shoppers visiting Easter confectionery over three times in the season, an increase of 3% (Source: Kantar Worldpanel Year to April 2014).

On average, shoppers purchase two adult egg packs and continue to increase spend per pack, +3.5% versus 2013 (Source: Kantar Worldpanel Year to April 2014). Adult eggs represent significant share of the Easter market and are a key growth sector, up by 13.1% (Source: Nielsen Total Scantrack (inc Dunnes Estimate), Year to April 2014), while shoppers increased their spend per visit on impulse novelties by 13.6% in 2014 (Source: Kantar Worldpanel Year to April 2014).

The 2015 Easter season is shorter than in 2014: therefore, a key message for retailers is to stock up early and display impulse products on shelves as soon as possible in order to maximise sales.

The late season is critical for sales of adult eggs in particular, with over 70% of adult eggs sales coming in the last two weeks before Easter (Source: Nielsen Total Scantrack (inc Dunnes Estimate), Year to April 2014). With limited space on shelves, ensuring favourite brands as well as a variety of products are on offer is key to sales success.

Ferrero Ferrero is set to accelerate the growth of its popular portfolio this spring, with new seasonal launches from its Ferrero and Kinder brands.

The Kinder brand is set to unlock sales further for retailers this Easter, with the launch of new Kinder Surprise Storymakers (RRP Single Egg €1.14 and 3-pack €2.85). Kinder Surprise will encourage children and their parents to create a unique story online, building on New Kinder Surprise the insight showing that Storymakers encourage 95% of mums believe it is kids and their parents to important for their create a story online about their Kinder Surprise toy, children to use their which will be captured in a imagination on a regular personalised storybook. basis.

The Kinder Surprise Storymakers promotion will reinforce the ‘Treat for the Imagination’ strapline, by encouraging kids and their parents to create a story online about their Kinder Surprise toy, which will be captured in a real personalised storybook that can be treasured as a keep-sake.

Kinder Surprise Storymakers will appear on all Kinder Surprise packaging from March to May, driving shopper interest further with vibrant packaging. Consumers will be able to enter their stories online, with the chance of

26|Retail News|January / February 2015|www.retailnews.ie

Easter Treats being one of 100 to win their personalised book every day.

Each pack will also communicate the three simple steps of entering, showing consumers how to take part on the new bespoke Kinder microsite; www.storymakers.com.

“Kinder Surprise experienced its best ever Easter in 2014,” noted Levi Boorer, Customer Development Director, Ferrero. “Story time still remains a special bonding time between parents and their children and by stimulating a child’s imagination further with Kinder Surprise Storymakers, we can not only give parents creative work from their children that they can proudly display but also give children a fun activity to take part in during the Easter period.”

The Kinder Seasonal range contributes heavily to the success of kids confectionery at Easter, experiencing triple digit growth of +110% during Easter 2014, with growth coming across every SKU within the seasonal portfolio.

MaltEaster Maltesers is one of Ireland’s favourite brands and has added over €1m in retail sales to the category in the past year (Source: Nielsen Scantrack Total Confectionery Value Sales MAT to November 2, 2014).

Growing at +37% in 2014, MaltEaster played a big part in delivering this growth and was the fastest growing self-eat product last Easter (Source: Nielsen Scantrack Seasonal Confectionery, Value Sales 12 weeks to April 20, 2014, vs 12 weeks to March 31, 2013). It is a delicious milk chocolate bunny with MaltEaster is a delicious a crunchy and creamy milk chocolate bunny Maltesers centre and is set with a crunchy and to hop off the shelves again creamy Maltesers centre this year! that’s set to hop off the MaltEaster kickstarts shelves again this year. the Easter season by creating a new way for consumers to enjoy their favourite Maltesers bite-sized treat. In 2015, the brand will be supported by a strong advertising campaign, including TV, online and outdoor, along with a strong sampling programme and massive in-store activation. This year will also see the arrival of a new addition to the range in the form of a MaltEaster Gifting Pack, the MaltEaster Family Campervan 135g, so MaltEaster will be the brand on everyone’s lips this Easter.

This Easter This year sees the arrival of a new MaltEaster Gifting Pack, the MaltEaster Family Campervan 135g.

Cadbury Chocolate is the signpost category for the Easter season and Mondelez Ireland is the number one manufacturer with over 50% market share (Source: Nielsen ROI Scantrack Data, Total Easter Chocolate to WE April 20, 2014).

Key to their growth in 2014 was a mixture of established brands and NPD helping them to grow Cadbury’s shell range returns stronger ahead of the rest of than ever in 2015, including new the market, +10% Cadbury Dairy Milk Oreo Countline value sales.

Large Egg. In 2015, Cadbury will continue to drive category growth with an Easter range to suit every shopper and occasion. The number one Easter novelty product, Cadbury Creme Egg signposts the season, supported by a massive advertising campaign including TV, outdoor, radio and digital right the way up until Easter Sunday. Added to that, Cadbury also have a range of sharing products including Cadbury Mini Eggs and Cadbury Dairy Milk Egg ‘n’ Spoon, which will Cadbury Dairy Milk Egg ‘n’ Spoon also be supported with will be supported with heavyweight heavyweight TV and TV and outdoor campaign. outdoor from February.

Finally, Easter wouldn’t be Easter without a Cadbury egg - the nation’s brand of choice at Easter with eight out of the top 10 skus. The shell range returns stronger than ever in 2015, with established favourites joined by exciting new products, including Cadbury Dairy Milk Oreo Countline Large Egg and Cadbury Heroes Large Egg.

Cadbury Heroes Large Egg: sure to be one of the star performers in the Cadbury portfolio this Easter.

Fastest growing Self Eat in the market in 2014 at +37%*

The Bunny is hopping off the shelves, so make sure you STOCK UP EARLY & keep in store THROUGHOUT the season!

Source: Nielsen Scantrack Confectionery Seasonal Value Sales 12 wks to 20/04/14 vs 12 wks to 31/03/13

® MALTESERS and MALTEASTER are registered trademarks © Mars 2015.

28|Retail News|January / February 2015|www.retailnews.ie

Easter Treats Giant eggs make ideal big Nestlé gesture gifts for shoppers With the focus on well-loved to give to special people in big brands, a huge 80% of the their lives: they are often 2015 Nestlé Confectionery made as a distress purchase. range is either totally new or Sales of Nestlé giant eggs improved, creating the most grew 2% in 2014 (Source: gift-worthy collection yet.

Nielsen Total Scantrack (inc Nestlé Confectionery’s Dunnes Estimate), Year to 2015 range aims to help April 2014) and in 2015, convenience retailers Nestlé Confectionery will be capitalise on the Easter introducing vastly improved opportunity, by delighting packaging, which showcases consumers and shoppers with the most important part an innovative collection from of this gift – the actual its market leading brands. chocolate eggs.

And, with a portfolio offering New for 2015 is the a wide variety of chocolate Yorkie Giant Egg (RRP treats, plus a strong focus on €11.59), which comes no artificial colours, flavours complete with a selection or preservatives as well as of full size Yorkie bars. The sustainability credentials, Yorkie brand is profiting there really is something for from a boom in popularity, all the family. with sales up by14.5% in Seasonal impulse products Capitalising on the growth the last two years (Source: offer retailers an incremental New for 2015 is the Aero Bubbly Egg of egg hunt packs is the Nielsen Total Scantrack (inc sales opportunity on top (RRP €1): attractively packaged and new Smarties Egg Hunt Dunnes Estimate) MAT Dec of their existing singles flow-wrapped for maximum freshness. pack, which contains foiled 2014) and attracts a younger confectionery sales – chocolate eggs filled with mini shoppers increased their male demographic.

Smarties.

The entire giant eggs spend per visit on impulse range has been redesigned for improved shelf standout. The novelties by 13.6% in 2014 (Source: Kantar Worldpanel Year elegant packaging gives that extra-special touch, making to April 2014). these eggs a worthy gift for that special someone.

Nestlé Confectionery is targeting a gap in the market Brand new for 2015, the Black Magic and Dairy Box for a more permissible impulse egg, which offers consumers premium eggs target the gap in the market for older, more the choice of a less heavy and indulgent eat. Aero fits the affluent shoppers. Dairy Box is one of the strongest selling bill perfectly and, therefore, new for 2015 is the Aero Bubbly assortments, up by 32% in 2014 (Source: Nielsen Total Egg (RRP €1). The egg is attractively packaged and flowScantrack (inc Dunnes Estimate) MAT Dec 2014). Therefore, wrapped for maximum freshness. it is perfectly positioned to launch its own Dairy Box Egg Hunt packs outperformed the market with huge premium egg this Easter. Joining it will be the Black Magic growth of over 50% (Source: Nielsen Total Scantrack (inc premium egg. Both have an RRP of €15.45.

Dunnes Estimate), Year to April 2014). Capitalising on this This year’s growth is the new range also includes Smarties Egg Hunt the popular After pack (RRP €6). The Eight premium pack contains foiled egg (RRP €15.45); chocolate eggs filled a large mint with mini Smarties. flavoured dark

For 2015, Nestlé chocolate egg Confectionery will complete with continue to leverage a 300g box of the broad appeal its the nation’s breadth of brands favourite After provides, meaning Dinner Mints. Its there is something packaging has for every age – been completely young to old. renovated to

When it comes optimise its shelf to teen/adult added standout and value eggs, new for elegance as a gift.

2015 are the Rolo and Munchies Tin Eggs (RRP €9.29).

Both eggs capitalise on the iconic shaped sweets of the Rolo The Dairy Box premium and Munchies egg launches this year, brands by including after the brand enjoyed New for 2015 is the Yorkie Giant a sweet-shaped huge success in the Egg, which comes complete with assortment category. a selection of full size Yorkie bars. keepsake tin.

Retail News|January / February 2015|www.retailnews.ie|29

Easter Treats Caffreys Caffreys have been manufacturing confectionery for over 70 years, where quality has been a family tradition. Indeed, Caffreys is a third generation Irish family business with that personal touch.

Caffreys are the oldest established Irish family owned chocolate company trading under their own family name, still family owned and managed, and operating from Caffreys Easter mallow range a 50,000 square feet factory have been manufactured to with their own chocolate Thomas Caffrey’s famous mallow recipe since the 1940s. manufacturing plant. Caffreys are one of the few wholly independent chocolate manufacturers in Ireland.

This year sees this iconic Irish brand celebrating 30 years manufacturing their Easter egg basket range.

These basket eggs are now synonymous with Easter.

Ranging in price from €10 to €100, the basket eggs offer the consumer quality and value for money with a special Irish made product.

Caffreys’ entire range of traditional products remains in huge demand.

Sales of Easter mallows and Easter baskets have been increasing for the Dublin-based company in recent years and Caffreys are predicting a whopping 20% increase for Easter 2015.

Caffreys Easter mallow range have been manufactured to Thomas Caffrey’s famous mallow recipe since the 1940s. Millions of mallow Easter Eggs have been sold over the years and are still in great demand today.

Many generations have grown up with Caffreys products, but the company isn’t resting on its laurels.

New for this Easter are a new range of New from Caffreys: Moo Free Easter Moo Free Easter Eggs are dairy Eggs, which are dairy free, gluten free, vegan and free, gluten free, have no GM ingredients. vegan and have no GM ingredients.

Lindt Gold Bunny is Back THE iconic Lindt Gold Bunny is back! Hopping in to all good stores throughout the country, the Lindt Gold Bunny appeals to adults and children alike, and brings a smile to millions of faces every Easter.

The Lindt Gold Bunny, wrapped in its infamous gold foil packaging and red ribbon, has become synonymous with Easter.

The Lindt Gold Bunny is the one of the top selling novelties in the Easter market, driving both footfall and revenue for retailers during this key trading period.

Available in milk, white and dark chocolate and in varying sizes this Easter, the Lindt Gold Bunny is on special offer in all leading retailers.

Elizabeth Shaw Brand new for 2015, Elizabeth Shaw are launching a limited edition Large Zesty Crisp Collection Egg, combining a deliciously smooth milk chocolate egg Elizabeth Shaw have a range of high quality with a seasonal premium Easter eggs, available in Ireland selection of through Flanagan’s Foods. crunchy dark chocolate lemon crisps and milk chocolate orange crisps, ideal for anyone who likes something a little zesty.

If consumers are after something more masculine, look no further than the Large Famous Names Whisky Collection Egg, a rich dark chocolate egg with a luxurious selection of eight of the finest liqueur chocolates from world famous Whisky brands, Grant’s Family Reserve and Drambuie. A wonderful twist on the leading brand of chocolate liqueurs, it’s perfect for those who like a little tipple at Easter.

For all mint lovers, Elizabeth Shaw’s Large Mint Crisp Collection Egg offers an ‘eggstravagant’ selection, including 24 dark and milk classic chocolate crisps, as well as a delicious dark chocolate gold wrapped egg.

The Elizabeth Shaw easter eggs are available through Flanagan’s Foods, Tel: (01) 4506100.

Aryzta Food Solutions Ireland Aryzta Food Solutions Ireland (formerly Cuisine de France) is once again striving to bring innovation in-store for Easter through their bakery brand, Cuisine de France.

Their lemon and white chocolate muffin is one of those innovations, with the lemon flavour commonly linked to Easter/spring time and the white chocolate a nod to the chocolate indulgence associated with the Easter period. Both work together to form a light but satisfying eat. Aryzta Food Solutions has also designed a range of new and exciting novelty Easter favourites, such as cupcakes and doughnuts, supported by POS to maximise opportunity in-store. This unique range will drive incremental sales and margin for retailers.

30|Retail News|January / February 2015|www.retailnews.ie

Join The

CAT CLUB There’s a new tin on the cat food shelf and it’s making a name for itself among cat lovers, as Mackle Petfoods expands its popular Cat Club range.

CAT owners see their cat as not just a pet, but as an important member of the family and they want to feed them only the best. However, our feline friends can be fussy creatures and cat lovers know that palatability and quality is vital. They are looking for a high quality, tried and trusted cat food but at a value price, which Cat Club offers.

Double Digit Growth Since its relaunch back in August, Cat Club has enjoyed impressive double digit growth figures, driven by the brand’s new Variety 3 Packs; Cat Club Variety Chunks in Jelly and Cat Club Variety Chunks in Gravy, both priced at €2.

Perfect for the convenience trade and offering the retailer strong margins, Cat Club continues to perform extremely well. Irish consumers have embraced the high quality, great value range, so much so that Cat Club have introduced a new Poultry Selection Chunks in Gravy 6-Pack. This latest edition will complement the current Cat Club Variety Chunks in Jelly 6-Pack and 12-Pack.

Improved Formulations Pleasing our fussy feline friends is paramount, so as part of the relaunch,

new improved formulations have been introduced across the range.

Cat Club have improved the quality and palatability of the product, using high quality Irish meats that are fully traceable from farm to can. The natural, meaty chunks in appetising Jelly and Gravy have all the nourishment and essential vitamins and minerals to ensure all-round good health and lively energy, so consumers know that they are feeding their cats a tasty, nutritious meal they’ll love.

And the proof isn’t just in the tin! A particularly charming video on Cat Club’s Facebook page proves just how much cats really do love their Cat Club. This sharable little video is just one element of promotional activity that will bolster the brand in the coming months. Together with digital content, new products and a

packaging redesign, Cat Club is sure to continue to make waves in the pet food sector. Its success is testament to yet another quality product from Mackle Petfoods, whose philosophy is to put pets first.

Check out the cat video on Cat Club’s You Tube Channel or Facebook page: facebook.com/catclubcatfood.

Since its relaunch in August 2014, Cat Club has enjoyed impressive double digit growth figures.

Cat Club Cat Food

Cats love their...

32|Retail News|January / February 2015|www.retailnews.ie

Retail Ireland: Monthly Update

Minister Bruton Publishes Draft Regulations for the Grocery Supply Chain JUST before Christmas, the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD published a draft set of proposals to regulate certain practices in the grocery supply chain under the Competition and Consumer Protection Act 2014.

The draft regulations are designed to ensure fairness in the supply chain by formalising relations between suppliers and grocery retailers. They include the following stipulations: •

• • • • • • • • •

All commercial relationships in the grocery supply chain are to be based on good faith, fairness, openness and transparency; Richard Bruton TD, Minister for Jobs, All contracts are to be in writing, in Enterprise and Innovation. plain English and must be signed by a representative of both parties; Contracts cannot be terminated, altered or renewed, unless the contract terms specifically allow for this; The supplier cannot be held responsible for delays or failure to supply, if the circumstances causing that delay or failure are “beyond the reasonable control of that party”; Payment must be settled within 30 days of the date of invoice or the date of delivery, whichever is later; The retailer cannot seek payment from the supplier to fund promotional activities, marketing costs and/or to secure shelf space, unless the contract terms specifically allow for this; The retailer cannot seek payment from the supplier to fund the cost of advertising or in-store display; The retailer may seek payment from the supplier for wastage costs, only if the wastage is caused by negligence or fault on the part of the supplier and the contract must specifically refer to this; The retailer cannot seek payment from the supplier for shrinkage costs, unless the terms of the contract specifically allow for this; The retailer may seek payment from the supplier to cover the resolution of a customer complaint, only if the compliant arises as a result of negligence or fault on the the part of the supplier.

In terms of enforcement: • The retailer will be expected to train an appropriate amount of staff to take responsibility for compliance with the regulations and to train other staff as necessary; • The retailer must nominate a staff member who will take responsibility for liaising with the Competition and Consumer Protection Commission (CCPC) on all matters pertaining to the regulations; • The retailer must prepare and submit an annual compliance report; • All records must be maintained for at least six years; • The supplier will not be permitted to waive any of the regulations, even when it expressly agrees to do so under the terms of the contract with the retailer.

As part of the Department’s planned Regulatory Impact Assessment, Retail Ireland also been asked to estimate the likely costs of compliance.

Retail Ireland has always supported the concept of fair relations in the supply chain, as long as the obligations on retailers are reasonable and balanced. We have already begun to formulate a response to the Minister and impacted members are invited to contact us if you wish to discuss the matter further.

CHRISTMAS TRADING MATCHES PREDICTIONS RETAIL Ireland warmly welcomed the CSO’s retail sales statistics for the all-important month of December which returned positive, albeit modest, growth, matching our earlier predictions. With Christmas the most crucial time of the year for retail, December saw a particularly strong performance in department stores and across furniture, lighting and homewares outlets. The total value of December’s sales rose by 1.8% on an annual basis, with volumes jumping by 5.2%, indicating that discounting remains a significant factor in driving footfall and sales.

Overall figures for 2014 indicate that a turning point has finally been reached after a number of challenging years in the industry. That said, 2014’s gains come from a low base and growth remains frustratingly slow, with the total value of core sales still 17% below 2007 levels. Meanwhile, legacy business costs, high rents and exorbitant local authority rates continue to pose significant challenges for many operators.

With many more people in employment, a rise in disposable incomes and a much enhanced level of consumer confidence, the outlook for 2015 is positive.

Tel: 01-6051558 www.retailireland.ie

IF BRANDS ARE

OUTLAWED, ONLY OUTLAWS WILL HAVE BRANDS.

Plain packaging for tobacco products will mean that familiar brands will only be available from criminals. Bad news for the consumer and the retailer is good news for criminal gangs.

WHY HAND BRANDS TO CRIMINAL GANGS?

34|Retail News|January / February 2015|www.retailnews.ie

Retail Technology

The Tech Effect

Omni-channel retailing is the buzz phrase for retailers looking to future-proof their market but is it a realistic and achievable aim?

THE retail sector, like every aspect of 21st century life, continues to be affected by the technological revolution that has created the era of the smart consumer. That’s not to say that the shoppers of the last century weren’t bright, far from it, but today’s consumer is far more tuned in than just a generation ago, thanks to the fact that they have, at their fingertips, instant access to a world of information, via their smartphone, tablet, laptop etc.

Anyone involved in the retail tech sector will tell you that the future is all about omni-channel or multi-channel retailing, whereby the retailer has a presence in bricks and mortar, as well as web, mobile etc. In more mature digital markets such as the UK and France, there are signs that the growth of pure e-commerce is not as steep as it used to be, and multi- or omni-channel retailing is rising as the way forward.

“Bricks and mortar shops are still relevant and important,” the Baroness Lucy Neville-Rolfe, current president of EuroCommerce and former Executive Director of Tesco plc told attendees at the 2014 Retail Ireland Conference. “Yes, the way people shop continues to change but the most important thing is still to provide a consistent and positive experience for consumers.”

At the same event, Garry Lyons, MasterCard Worldwide’s Chief Innovation Officer and Head of Labs, stressed MasterCard’s belief that omni-channel retailing is the future. MasterCard want to hold onto your financial transactions, whether a card is involved or not and thus,

When it comes to retail, mobility is more than just an app.

Retail News|January / February 2015|www.retailnews.ie|35

Retail Technology the company has gone beyond plastic in its thinking. With this in mind, Lyons was given carte blanche to investigate the commercial technologies of the future.

This includes the latest e-commerce solutions, like Shop This, a digital purchasing platform which allows the user to purchase a plethora of goods from multiple online retailers with one click, using the MasterPass digital wallet. Using a tablet to read a magazine, the consumer can click the Shop This logo on the digital advertisements or editorial pages to purchase said product immediately and easily. This kind of technology, Lyons mused, could in the future translate to consumers’ home fridge, scanning its contents and allowing them to order goods from multiple retailers in a single purchase.

How to Combat Showrooming Of course, technology brings challenges as well as opportunities. The practice of ‘showrooming’, whereby customers browse the product selection in a bricks and mortar store, before buying the product online, is widespread, and it is up to traditional retailers to compete with their online competitors. Price matching in real time can allow a traditional store to fight back – this probably involves ensuring in-store staff have mobile technologies to put them on a level playing field with smartphone-wielding consumers.

When it comes to retail, mobility is more than just an app. Tesco’s own tablet, the Hudl, can be used for in-store shopping, while some stores equip their employees with tablets with PoS capabilities. Here in Ireland, some of the more progressive retail groups have equipped retailers with tablets for easier online ordering and interaction with the parent brand.

The Connected Consumer In the last issue of Retail News, Kay McCarthy, founder & Managing Director of MCCP - The Planning Agency, highlighted the advent of the connected consumer in her article on the 15 drivers for leading marketers in 2015.

More challenging than the rate of economic recovery, she argued, is the rate of change that technology is bringing to consumers’ world as we enter the age of the ‘always-on’ consumer.

The average Irish consumer now has more gadgets than children. For retail brands, this means a number of important considerations: consumers will wear out quickly if there is not enough engagement and layers to your messaging. They will want to use their multi screens to discover more, share more and if the right content is not there, they will move on and you will lose the opportunity and waste a lot of media investment.

To really understand the real time consumer, marketers need to access real time insights about their consumers, McCarthy argued. With access to more information, by the time the focus group has happened, you are really looking in the rear view mirror, when you need to be looking ahead, as well as in the now. It is necessary to combine real time research techniques with more traditional ones, she notes, such as the focus group, in order to accurately assess what the consumer is doing versus what they are saying

Irish retail technology experts Celtech have been delivering world class IT systems to retailers for more than two decades.

they are doing. We are living in the era of brands ‘doing, not saying’ and so we must also get more accurate information on what consumers are doing.

MCCP have used software tools to access this information at the point of consideration, closer to the purchase for many categories, including work for Rustlers in the UK. As a result, MCCP were with the consumer in a digital mode along their customer journey, so the insights gleaned were more accurate and therefore more valuable.

They also use many more creative techniques involving behavioural economics to ensure our research is more robust and a more accurate predictor of behaviour, McCarthy notes.

Integrating Your Data Streams Most retailers have access to big data on their customers, via everything from their back-office systems to more sophisticated loyalty card operations. As margins are squeezed, they must use wisely the data at their disposal to

36|Retail News|January / February 2015|www.retailnews.ie

Retail Technology anticipate demand, manage categories, refine their pricing and optimise their operations.

Integrating all the technology and systems at your disposal is key to ensuring the omni-channel retail experience is seamless, both for the retailer and the consumer. Ensuring that your data crosses the relevant sectors of your business, from supply chain management to customer data, can make all the difference.

The Guardian newspaper recently reported on a tech start-up called Shopwave, which purports to do just that, featuring integrated payments, coupon capabilities, loyalty functions and an open application program interface. “We view Shopwave very much as an enabler that lets retailers focus on the customer and ensure they have a great experience, rather than a replacement for human interaction,” Shopwave’s CEO, Ben Brown, told The Guardian.

World Class Retail IT Here in Ireland, retail technology experts Celtech (www.celtechgroup.com) has been delivering world class IT systems to retailers for more than two decades, based primarily on ab-initio, which they describe as “the ultimate real-time management system”.

Celtech’s ab-initio trading portal allows trading partners to easily create, receive, share, view and track orders. For symbol groups, this enables wholesalers, independent retailers and suppliers to collaborate in real-time, creating greater visibility across the supply chain, streamlining processes and in so doing delivering operational efficiencies and agility. Access is provided to previous order history, which includes full account and order information, from product and price details to credit limit and account status. Trading partners also have access to, and can share information relating to delivery, invoicing and the progress of outstanding orders, all in real-time.

The ab-initio trading portal is accessible via a variety of devices, ranging from PCs to tablets and smart phones.

“We created the trading portal for symbol groups to enable an unprecedented level of real-time collaboration across wholesale, retail and supply,” Darragh Fanning, Celtech CEO, states. “As a result, there are huge benefits for all parties in terms of supporting operational efficiency and continuity. True real-time is essential because it generates streamlined operations across the supply chain and provides the ability to see exactly what is happening as it is happens.”

Celtech argue that while there is a lot of hype about so-called ‘omni-channel’

EUROPE’s leading retail technology trade show, EuroCIS, takes place in Düsseldorf

from February 24-26.

By presenting solutions, trends and visions for the retail trade of the future in all its forms and functions, EuroCIS is a unique think tank in matters of retail technology. This year’s event will feature about 250 exhibitors from 25 countries with their ideas, products, systems and solutions occupying two halls at the Düsseldorf Exhibition Centre.

Today’s and tomorrow’s consumers want to have the best of both worlds – online shopping with all its options, using a wide range of terminals, and also physical shopping or

and providing a seamless digital (particularly mobile) and physical (in-store) customer experience, the reality on the street is still disjointed, mostly because of legacy or stand-alone systems that are not designed to operate as one – for example traditional point-of-sale and eCommerce systems.

However, it is coming, Celtech argue, and given the length of time it takes to adopt or change systems across an estate of stores, it is important that any systems being implemented today should be designed around its key principles and have the functionality already built-in. For example, store staff must be able to see a customer’s on-line orders at PoS to properly accept returns and refund the correct amount. Any refunds should then be

at least the option of picking up their purchases at an outlet.

Any retailer who does not want to lose valuable revenue must appeal to their customers through all channels. The combination between offline and online trade and between stationary retail and e-commerce will take even more space at EuroCIS 2015 than at any of the previous tradeshows.

EuroCIS 2015 covers the entire retail-specific expertise of the IT sector: multi-channel and omni-channel management; business analytics and big data; payment systems; e-commerce and e-business solutions; ERP and supply chain management; mobile solutions & technologies; POS software and hardware; checkout management; digital marketing and digital signage; workforce management; loss prevention; cash management; retail security; weighing technology and food service. See www.eurocis.com for more information.

instantly visible online.

A key foundation for true omnichannel retailing is a centralised database model – particularly for inventory, customers and orders – that is viewed and updated in real-time by staff and customers alike – be it at point-of-sale or on the customer’s mobile. This then also provides a single up-to-date repository for everything, including a customer’s loyalty points, coupons, credit, favourites etc.

Ultimately, Celtech argue that the grocery shopping experience is out-dated and is prime for disruption by progressive retailers leveraging technology. Celtech pioneered the first centralised system for retailers and wholesalers and is leading this disruption with a number of new innovations in 2015.

Retail News|January / February 2015|www.retailnews.ie|37

Retail Technology

We Need to Talk about Self-Checkout

CBE’s new convertible express checkout is ideal for convenience stores as it can convert from an express checkout to a self-service terminal in seconds.

SELF-checkout is not a new innovation to retail, but as a major component of the new omni-channel experience, it is becoming a ‘must-have’ element for stores rather than an optional ‘add-on’ as was the case in the past, according to Seamus McHugh, International Sales and Marketing Manager at CBE, Ireland’s largest EPoS solutions provider.

Globally, over the last few years, the increase in self-service lane density and customer adoption has grown significantly. A number of UK and European retailers are moving to deployments of 70-85% of store lanes being self-checkout. This increase is being driven by the rapidly changing demands of convenience stores.

As with most technologies, a onesize-fits-all approach is not advised.

Working in tandem with their self-checkout provider, retailers need to undertake a thorough analysis of their operations. The results of this discovery phase should outline how many lanes of self-checkout are required, the positioning of these units and importantly, the type of self-checkout to install.

Convertible Express Checkout There are a number of self-checkout solutions available, including the new convertible express model. The The new convertible express express convertible checkout from CBE: ideal unit is ideally for convenience stores.

suited to convenience stores, as the unit can convert from an express checkout to a self-service terminal in seconds.

Although internationally, some operators CBE’s International Sales operate and Marketing Manager, all their Seamus McHugh. checkouts as self-service lanes, market research of the Irish retail landscape would suggest that stores integrate self-checkout technology along with manual checkouts in order to satisfy the needs of all prospective customers.

Whilst there is compelling business rationale for introducing self-checkout, it is the enhancements to the customer’s shopping experience that has been the biggest success to date of self-checkout installations. By giving customers a choice, it has allowed retailers to build greater customer loyalty.

Convenience retailers in Ireland that adapt to market demands and install self-checkout will benefit from first mover advantage and create significant benefits for their business.

If you wish to find out more about CBE’s self-checkout technologies, call 1890 373000, email info@cbe.ie or visit www.cbe.ie for more information.

CBE has been trading in Ireland and the UK since 1980. In that time it has deployed over 30,000 terminals. Today, it is the largest provider of EPoS solutions in Ireland, and one of Europe’s most successful retail technology companies. Pioneers in the retail technology sector, CBE continuously spearhead software and hardware developments, which become industry standard.

Indeed, CBE manages over 8m transactions every single day.

Innovation is at the cornerstone of their business model. CBE was first to offer fully integrated EPoS solutions designed specifically for the forecourt sector, and is the leading EPoS supplier to the grocery and hospitality sectors. CBE is ISO 9001 accredited and supplies to all major symbol groups

“At CBE, we are continuously making technological advances and adding new, intuitive features to our systems.

We are able to do this because we employ the best in-house software engineers and because of customer feedback, which we actively seek out,” notes Seamus McHugh. “This feedback is paramount to our success in remaining number one within the industry.”

38|Retail News|January / February 2015|www.retailnews.ie

New Retail App

New App Rewards Consumers and Brands A new smartphone app, Reep Rewards, has massive advantages for consumers, brands and retailers.

REEP Rewards is a new smartphone app that has big benefits for consumers, retailers and brands.

It’s the brainchild of James Lenehan, a former lawyer and the entrepreneur behind Win Win, the corporate rewards and incentives company, which he formed in 2000.

In 2012, James saw an opportunity to look at the mobile space as the smartphone sector continued to evolve and more and more people were upgrading from traditional mobiles to smartphones. This led to Reep Rewards launching at the end of 2013.

“The whole concept behind Reep Rewards is to connect retailers and in particular, brands directly with shoppers using mobile phone technology,” Lenehan explains. “We spoke to a number of brands, who were really excited about the prospect because they had never really had the opportunity to connect directly with shoppers before, so they were very interested in the idea from the very beginning.”

Receipt Reader The mechanic behind Reep Rewards involves the consumer downloading an app, which they then use to photograph their shopping receipts. The shopper then receives ‘Reep cent’ for spending at specific stores or purchasing certain branded products. These Reep cent are credited to their account and can either be used to purchase treats like cinema tickets or they can “cash out” which means they can convert their reep cent into cash and transfer it into their bank via Paypal.

The way to earn cash back is simple. Consumers take a photo of their receipt, or several photos if it’s a very large receipt, and it gets stitched together remotely by Reep, who then run a series of checks on the receipt, ensuring it hasn’t been scanned before and various other proprietary fraud checks. Reep’s optical character recognition system then reads the receipt, converts it into data and identifies which products have earned Reep cent and how much is due to the user, crediting their account with the appropriate Reep cent.

James Lenehan, founder and CEO, Reep Rewards.

The app was launched at the end of 2013 and “quickly got traction”, according to Lenehan. “We currently have almost 80,000 registrations, more than 50,000 of whom are regularly active on the app,” he says proudly. “In the region of 7,000 receipts are being uploaded every day to the app, and we have approximately 200,000 screen views every day.”

Special Offers May 2014 saw Reep Rewards run a survey with 10,000 users, which revealed that although consumers loved the cash-back aspect of the app and saw it as their go-to place for grocery, they asked if it was possible to aggregate all the special offers from the different grocery stores. This would help the shoppers when planning their shop.

“We looked at this as a proposition and redeveloped the app so that now when it opens, you can view current special offers from all the leading retailers,” Lenehan reveals. “That saves people a lot of time and a lot of money. For example, if you’re looking for half price nappies, beer or premium ice cream, you can go straight to the app and find out which

Retail News|January / February 2015|www.retailnews.ie|39

New Retail App store has them. That redevelopment has delivered a lot of further engagement with the app. We now have in the region of five million branded offer views per week.”

The Retail Proposition The benefits for consumers are obvious in terms of earning cash back on their purchases, and saving money, but what does Reep Rewards offer to brands and to retailers?

“Brands and retailers are our biggest clients,” Lenehan admits, “with brands being our primary focus. However, we can offer them both a range of services that will have a real impact on their business.

“For retailers, we can provide services that help Reep cent are credited to their account and can either be used to them further understand shopper habits and they get purchase treats like cinema tickets or they can “cash out” which means a landscape view of the overall grocery market - like they can convert their reep cent into cash and transfer it into their bank never before,” according to Lenehan. “We can also via Paypal. help drive footfall because tens of thousands of shoppers are now using the Reep app to plan their shop opinion on which ad would work best for the Irish market. and that’s the time to capture their attention. The “We rewarded our users with Reep cent for their participaapp also allows retailers to run tactical sales promotions, tion and we were able to have results for the client in 48 quickly and easily. For example, if a consumer spends €50 hours, which showed which advert clearly resonated most in a particular group, they could get €5 back in Reep cent. with Irish consumers,” Lenehan notes.

There’s no IT investment, no fuss – we can go live within a few days.”

Open For Business Lenehan stresses that this is real time information.

The Reep Rewards app is just a year in business and has “Unlike some of the other big data houses who take up to 10 already enjoyed a strong take-up, with 16 master brands on weeks to turn data into information, we can do it within a board and responding very well. “Much of 2014 was used for few days.” testing possibilities, ironing out IT issues. We are now ready Primary Focus on Brands to do business and we expect to build a substantial client While retailers present a good business opportunity, the base over the course of this year, as we reveal how we can primary focus for the business is in helping brands to build help them,” Lenehan notes. “Already we are being asked by brand equity, understand their customers and ultimately certain clients if they can secure exclusivity within their catgenerate more sales. egory – they see what we are doing as a game changer.”

The first big benefit for brands is in sales activation, Brands have come under a lot of pressure from own Lenehan explains: “We are offering brands an opportunity label in the last few years, as Ireland’s traditional brand to target consumers directly. For example, they could decide loyal consumer has embraced retailer own labels. Is there to give the first 20,000 people who purchase a new product still a place for brands to grow in Ireland? (and snap their receipt) €1 back in Reep cent. We track “There’s no question that brands are here to stay,” Lenethis from their receipts. The brand can run that promotion han notes. “The whole marketing landscape has changed across all stores, without having any clearing house costs or away from the traditional model where consumers saw an IT buy-in from retailers. The promotion is up and running ad on TV and then bought the brand in-store. Brands have within a matter of days. had to adapt to that. I believe the future for brand mar“Next, we deliver a report to the brand detailing who keting is going to be around building brand equity using purchased their products. We break down the 20,000 custactical campaigns and word-of-mouth marketing. Because tomers, using gender, age and location demographics, which there are so many new communications channels, particularly in terms of social media, people are being bombarded are supplied at sign-up by the consumers,” he explains. “If with information. We are believers in endorsement and we the brand wants to talk to those consumers, we can follow believe that new channels, like mobile, are the perfect platup with questions about their purchase, what influenced form for that. We believe that brands should come on that their decision to buy, and how they view the brand.” journey with us.”

This follow-up service allows Reep Rewards to survey a brand’s customers or their competitors’ customers.

They can also target specific consumer groups.

“If a brand wants to talk to porridge consumers, for example, there’s no need to talk to 10,000 consumers to see which of them are porridge eaters: we already know who actively purchases and consumes porridge based on our receipt data.”

The Reep Insights offering is definitely very interesting for brands. One of Reep Rewards’ clients recently approached them as they were about to launch an advertising campaign in Ireland. The client had three different ads which had run in the UK, and they had just days to decide which campaign to run here. Reep The Reep Rewards app also allows users to view current special offers from all Rewards were able to target customers for their the leading retailers.

40|Retail News|January / February 2015|www.retailnews.ie

Paper Products After years of decline, new innovation is beginning to drive consumers towards the super premium sector of the paper products category.

THE BIG TISSUE IRELAND’s recent economic woes have impacted on the paper products sector, with economy brands and private label gaining ground since the recession hit Ireland’s cash-strapped consumers.

However, in 2015, the signs suggest that this once stagnant giant could be set to grow again, as consumer sentiment improves and manufacturers begin to innovate, particularly in the premium and super-premium categories.

The retail tissue category is unusually dependent on macroeconomic indicators as it is a necessary but very functional category in which unit price is all-important, according to Euromonitor International.

Therefore, improvements in Ireland’s overall economy could and should translate into growth in the paper products sector almost immediately.

This is borne out by the level of new product development across paper products, with leading brands launching a host of added value products across the category, following years of deep discounting. Indeed, perhaps the paper products market is the firmest indicator yet of Ireland’s economic revival.

SCA SCA is a leading global hygiene and forest products company, with operations in Ireland based in Dublin. The group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands such as Cushelle, Plenty, Velvet, Bodyform and Demak’Up. SCA’s tissue brands, Cushelle and Velvet, along with their household towel brand Plenty, will continue in 2015 to drive strong brand awareness and rate of sale through investing in television, radio and cinema advertising, as well as digital marketing, merchandising and shopper marketing campaigns. A combined €1m marketing investment will support the brands in 2015.

Cushelle claims over 10% value share in the toilet tissue category and has value sales over €11m (Source: Kantar Worldpanel Data to November 9, 2014).

Cushelle had an exciting 2014, with the launch of a new TVC, new packaging and a successful winter Cushelle Koala on-pack giveaway. In 2015, the brand will invest in TV and cinema advertising, utilising the computer generated Cushelle advert that builds on the emotional engagement of Koala, appealing to both children and parents. An in-store brand activation will also bring Koala to life in leading retailers

Cushelle will invest in TV and cinema advertising, utilising the computer generated Cushelle advert that builds on the emotional engagement of Koala.

Velvet will continue to promote its unique ‘3 Tree Promise’ which states that for every tree used when making Velvet, they replace three.

We’ve got every category covered

Stock up

Ire hou land’s seh fav wor old to ourite w th n earl el bran y €6 d M. 1

and

watch your

sales grow

nd bra ales k toc in s .1 m st s y Mu g €11 tegor n a i c d ad o the t

Radio 2015

TV 2015

has orm ct of f y Bod Produ 15!3 0 n wo Year 2 e th

TV 2015

Radio 2015

der lad ith b 1 # dw 2 nd’s bran hare. a l e s s s Ir kne alue wea 70% v r ove

Supported by €11 million combined marketing investment for 2015!

the nd in rca a r b tial g ci Essen ry addin t replace o e g v l e 1 . Ve cat ry 2014 s for eve n i M e 6 e r t € . three ree used t

TV 2015

Kantar Worldpanel data to November 9th 2014. dunnhumby MAT data 7th Jan 2014 -5th Jan 2015.

3 Roll.Press.Go. innovation winner. Winner Feminine Care Pad Category. Survey of 10,175 people by TNS. 1

2

Radio 2015

Visit our website www.sca.com/ie

42|Retail News|January / February 2015|www.retailnews.ie

Paper Products this year. Koala has already proven to be a valuable brand asset, loved by consumers and shoppers, young and old.

Velvet toilet tissue is a ‘must stock’ brand in the toilet tissue category with value sales of almost €6m (Source: Kantar Worldpanel Data to The focus for Plenty in 2015 is to continue November 9, to drive category innovation and increase 2014). Velvet shopper awareness of the brand message will continue that ‘Plenty Does More Than You Think’. to promote its unique ‘3 Tree Promise’ which states that for every tree used when making Velvet, they replace three. This initiative has already seen 4m extra trees planted. In 2014, the brand launched a high impact radio campaign to communicate this message. The radio adverts, voiced by award winning garden designer Diarmuid Gavin, will run again in 2015 and will be complemented with investment through shopper marketing activity and digital marketing.

Plenty is Ireland’s number one household towel brand with value sales of circa €6m (Source: Kantar Worldpanel Data to November 9, 2014). The focus for the brand in 2015 is to continue to drive category innovation and increase shopper awareness of the brand message that ‘Plenty Does More Than You Think’. Whatever the job, Plenty has a range of products for every occasion. Strong when wet, and super absorbent, it’s no wonder Plenty is Ireland’s favourite household towel.

SCA is also participating in the 2014-2015 Volvo Ocean Race with an all-female crew. The company has chosen to support an all-female crew as globally, about 80% of the retail products SCA makes are purchased by women. The race will come to a close in June 2015 and is possibly one of the world’s toughest sporting events for teams.

Kittensoft Kittensoft, from Intertissue, saw growth again in 2014 by over 12% in a declining toilet tissue market of 1.6% (Source: ACNielsen). In the 24-week period to Jan 4, 2015, Kittensoft has grown to 14.2% market share, an Kittensoft Quilted Dreams, a 4-ply toilet increase of over 22% on the same tissue which promotes luxury softness. period in 2013 (Source: Kantar).

Re-launched back in September 2013, Kittensoft has

regained its consumer loyalty as one of Ireland’s leading toilet tissue brands 2015 will see another eventful year for Kittensoft as it launches its super premium variants, a sector that is in growth in the Irish market.

Kittensoft Aloe Vera, a 3-ply toilet tissue enriched with balm, is available since January in 4 and 9 roll variants, along with Kittensoft Quilted Dreams, a 4-ply toilet tissue which promotes luxury softness.

Limited edition packs will be available throughout the year, displaying different themes for different seasons and the Irish consumer will also benefit from some extra free packs on Kittensoft White for 2015 2015 will see a full year of great promotions, new packs, TV advertising and consumer support for the Kittensoft brand.

Kittensoft Aloe Vera, a 3-ply toilet tissue enriched with balm, is available since January.

Regina Also from Intertissue, the Regina tissue brand was launched in Ireland in 2007 and today takes its place as one of the leading premium brands.

2014 saw another strong year for Regina in the Irish market. In the toilet tissue sector, the brand now claims 8.3% market share, a jump of over 25% on the same period in 2013. When it comes to kitchen towel, Regina with only two products, now holds 14.9% market share, an increase of

2015 sees the launch of new Regina Rollalong, a toilet tissue with 500 sheets of soft tissue paper per roll.

44|Retail News|January / February 2015|www.retailnews.ie

Paper Products 47.5% on the same period in 2013 (Source: Kantar, 24 weeks to January 2015).

Innovation is at the heart of the Regina brand and 2015 sees the launch of new Regina Rollalong, a toilet tissue with 500 sheets of soft tissue paper per roll.

This will be available in six rolls per pack and is a great space saver for families. It Regina Blitz household towels will be supported with continue to outperform the category. in-store promotions and consumer couponing.

Regina Blitz and XXL Household towels continue to outperform the household towel category. The phenomenal growth of over 47% year-on-year (Source: Kantar, 24 weeks to January 2015), clearly shows that consumers trust the performance of these products for all jobs around the house.

The Regina paper range will be supported continuously in the year to come with TV advertising, in-store marketing and promotional campaigns, ensuring the consumer is rewarded by purchasing this hugely successful premium brand

2015 sees Nicky’s partnership with the Jack & Jill Children’s Foundation continue.

This is an increase of over 46% in a declining sector (Source: Kantar).

This confirms its loyal customer base in Ireland and that the Nicky brand continues to deliver quality, innovation and great value for money to the Irish consumer.

Offering a product portfolio for all segments of the toilet tissue market, the Nicky Paper brand is a must stock for all retailers. From Nicky Soft Touch 2-ply Toilet Tissue to the new Nicky Elite 3-ply Aloe Vera premium variant, the consumer has a great choice offered by this quality brand.

In the kitchen towel area, Nicky Lemon, a decorated kitchen towel with a lemon scented core is a huge hit with the Irish consumer. 2015 will see Nicky Lemon deliver great consumer promotions, including the addition of a 50% extra free pack in March, confirming its commitment to deliver great value to the Irish consumer.

2015 will also see Nicky’s partnership with the Jack & Jill Children’s Foundation continue. Indeed, Nicky will be adding the Jack & Jill Logo to their Soft Touch brand. See www.nicky.ie for more information.

Homestead The Homestead paper range continues to be one of the strongest categories within the Homestead portfolio. 2014 was an extremely competitive year in this category and the sales of Homestead tissue continue year on year to be extremely positive.

Nicky 2014 was another great year for the Nicky tissue brand from Sofidel. In fact, for the last 24 weeks, up to January 5, 2015, Nicky has moved from 9% market share in 2013 to 13.2% in 2014/15.

The continuation of Homestead’s price marked packs into 2015 will ensure continued day-to-day value for the consumer, across the whole Homestead paper range.

Nicky Lemon, a decorated kitchen towel with a lemon scented core is a huge hit with the Irish consumer.

The Homestead paper range continues to be one of the strongest

categories within the Homestead portfolio.

46|Retail News|January / February 2015|www.retailnews.ie

Paper Products

Andrex is committed to driving value back into the toilet tissue category by driving product innovation and development across its portfolio.

Homestead Comfort 16 Roll, with an RRP of €4.99, delivers a great quality product at a very competitive price to the consumer.

Products like the Homestead Comfort 16 Roll, with an RRP of €4.99, delivered a great quality product at a very competitive price to the consumer and it was promotions like this that ensured consumer support for the Homestead tissue brand in 2014.

The paper range, which includes a variety of toilet rolls, kitchen towels and mansize tissues, is produced to the highest quality using 100% virgin pulp paper sourced from well managed forests. The selection rivals any market leader, while remaining well priced in order to compete successfully in the private label market.

The continuation of Homestead’s price marked packs into 2015 will ensure continued day-to-day value for the consumer, across the whole Homestead paper range.

Homestead Brand Manager, Janice Gibney added, “As the market becomes increasingly competitive, it is imperative that we review our pricing on a continual basis to ensure we continue to bring value home.”

Homestead’s paper range is produced to the highest quality using 100% virgin pulp paper sourced from well managed forests.

Andrex Andrex is committed to driving value back into the toilet tissue category by driving product innovation and development.

The brand is continually looking at ways to optimise its existing Andrex Classic White with a touch of cotton: the portfolio perfect balance of softness and strength. to ensure Andrex is helping people elevate their standard of clean. For example, the Andrex Classic White and Natural Pebble variants now have a touch of cotton. They offer the perfect balance of softness and strength to leave the whole family feeling clean and confident.

Andrex has also developed new products in the Andrex Washlets range that align with the brand’s existing dry toilet tissue products to encourage new routines and ensure care is consistent in all stages of cleaning. At the end of 2014, Andrex Gentle Clean Washlets were introduced to the market. Andrex wants everyone to feel as clean as possible and Andrex Gentle Clean Washlets have been designed with this in mind. The lightly-moistened toilet tissue is fragrancefree to give the whole family a gentle clean.

This addition to the existing Andrex Washlets range offers retailers the chance to better up-sell the different Andrex dry variants by stocking the complementary moist toilet tissue equivalent: Andrex Classic Clean Washlets leave families feeling clean and confident and are a perfect complement to Andrex Classic White and Natural Pebble; Andrex Gentle Clean Washlets are fragrance free to give a gentle clean and are a perfect complement to Andrex Puppies on a Roll.

Andrex Intimate Care: consumers can elevate the standard of clean with Andrex Washlets toilet wipes.

r s o ’ f M n M& g Gree S DAY ’ Goin TRICK A P T S

KISS ME

I’M IRISH

M&M’s is the biggest chocolate brand in the world, and is now ranked Ireland’s sixth most popular chocolate brand. M&Ms has built a reputation for bringing engaging, impactful campaigns to the Irish market: last year, Ms Green was voted as Irish retailers’ favourite in-store marketing campaign, and M&Ms is looking to build on this success with an even bigger out-of-home, digital and in-store campaign for 2015.

Ms Green will be adding her inimitable ‘green’ style to the Luas, effectively turning one of Dublin’s main modes of transport into an M&M’s themed ride to the St Patrick’s Day parade. In addition, the winning in-store promotional and POS programme from the 2014 campaign will be expanded and this year will include high impact displays for in-store activation, including aisle arches, hanging mobiles, toppers and bunting. The impact in-store will be further amplified with head turning prizes for shoppers and a 360 degree activation plan that includes the support of heavyweight TV advertising. Ms Green Kiss Me I’m Irish will launch nationwide in February and promises to be a hugely successful event.

WIN WITH 3 FRIENDS AND MS. GREEN Find us on Facebook to enter Terms and Conditions apply

158401 M&Ms_PaddysD Beauty 6sheet SR.indd 1

Worldwide celebrity and M&M’s character Ms Green is set to return to Ireland for the third year running in celebration of her latest ‘Kiss Me, I’m Irish’ campaign. She’s in town in advance of Ireland’s national holiday, St Patrick’s Day, in search of fun and to find one lucky fan and three friends to attend a legendary 4TH OF JULY PARTY IN LAS VEGAS.

can’t resist

13/11/2014 12:18

48|Retail News|January / February 2015|www.retailnews.ie

Eircode

Cracking the Eircode IRELAND is the last country in the OECD to have a national postcode system, but not for much longer. Eircode, Ireland’s new postcode system, will be able to pinpoint your house: indeed, it will help the public, businesses and public bodies, including emergency services, to locate every individual address in the state.

“We are unique in the developed world in that we have non-unique addresses,” explains Liam Duggan, Business Development Director, Eircode. “35% of addresses in Ireland are non-unique. That is typically a townland or a crossroads where there might be 20 or 30 houses and they all have the same address. The only one who knows who lives where and can deliver any sort of service is the local postman. That is what we are looking to resolve: the difficulty for people trying to find those 35% of addresses, be they delivery companies, service providers etc.”

Thanks to developments in technology, Eircode will identify each individual property and give its GPS coordinates. This in turn will have additional benefits for certain business sectors: for example, insurance companies could perform flood plain analysis based on the Eircode system, allowing them to accurately identify properties which are located on a flood plain.

Unique Property Code Ireland will be the first in the world to have a unique postcode for each individual address. The new seven-digit Eircode will be in the format A65 B2CD. The first three digits relate to the postal district (such as Dublin’s postal areas), while the last four characters are an individual property code within that area.

“Like the UK postcodes, we have two elements to Eircodes: there is a routing key, which is the first three characters,” Duggan explains. “In the case of Dublin, that corresponds to the current Dublin postal districts, from D01 to D24. In total, there are 139 routing key areas across the country. In the UK, there are about 125 of these areas, so it’s not dissimilar in that regard, in that they refer to broad geographical areas. Where Eircode differs is in the last four characters, which are unique to a property in the routing key area.”

For the four-digit property code, Eircode has removed what Duggan calls “competing characters which could cause confusion”. What this means is that instead of having both a zero and an ‘O’, they have dropped the ‘O’ (they have also dropped ‘Q’ as it can often be mistaken for a zero). Similarly, ‘I’ and ‘L’ have been removed, while ‘1’ is maintained.

“We are down to a character set of 25 characters, which gives us 390,625 variables of four characters,” Duggan

Eircode Business Development Director, Liam Duggan explains why the incoming postcode system will be beneficial for Ireland. explains.

However, Eircode weren’t finished there.

“We then undertook an exercise where we have removed all real names, acronyms, rude words, text-speak etc, which could potentially cause offence,” Duggan points out.

“In total, we removed about 80,000 words or numbers Liam Duggan, Business Development which could Director, Eircode. cause offence, which brings our total number of combinations to just over 300,000.”

So each of the 139 routing key areas has a potential 300,000 combinations. Given that the largest routing key area has 80,000 addresses, while the average is about 15,000, there is plenty of room for expansion.

Technical & Social Concerns The four-digit code, which is unique to a property, is, according to Duggan “not exactly random, but it’s not structured”. There are rules around how these four digit codes are allocated, he explains, which are based around two main concerns, one technical and one social.

The technical reason makes perfect sense. If you have a sequence and one building is knocked down, and is replaced with, say, an apartment block with 20 addresses, the sequence is suddenly thrown out of kilter. “Also, in a townland area, where currently we have non-unique addresses, we want the codes to be quite different,” Duggan adds. “It’s very difficult to build any sort of sequence in a townland for a variety of reasons. For example, there is no sign saying you are entering or leaving a townland, so it is difficult to tell where it starts and finishes, which makes building a sequence pretty much impossible in a townland area.”

Retail News|January / February 2015|www.retailnews.ie|49

Eircode The other, social reasons are perhaps more difficult to explain, but equally important. Duggan cites the example of Dublin postcodes.

“Everyone is used to using Dublin postal districts,” he explains. “But if you further divide them into Dublin 4A, 4B, 4C etc, and you define those by geography, you could create postcode ghettos and postcode discrimination. You would be accused of manipulating property prices, because suddenly it’s no longer good enough to live in Dublin 4, you have to live in Dublin 4A. For example, there was a huge furore when Dublin 6W was created, as it was originally mooted to be Dublin 26.”

What Eircode Means When it goes live in mid-2015, Eircode will mean different things to different people, Duggan admits.

“For the postal service, it won’t make a huge amount of difference,” he shrugs. “An Post are the only people who can accurately deliver to non-unique addresses right now, so it is not going to improve their service – but they are working on a programme right now to integrate Eircode into their sorting systems.

“For the general public, if you live in a non-unique area, it has more meaning to you. If a courier or a delivery van is delivering to you, you no longer have the problem of trying to direct them to your address. Everyone who lives in those areas understands that very clearly and they will see the benefits immediately as delivery companies can use your Eircode to find the GPS coordinates to your property.”

For the 65% of the population who live in a unique address, the benefit may be really in terms of online purchasing, Duggan feels: “If you go to buy something online and are asked for a postcode, you currently have to make something up. We are speaking to a lot of online retailers, who will allow a certain amount of time for Eircode to bed in: after that time, they will only ship where there is a valid Eircode. The reason for that is there is quite a lot of fraud going on when it comes to online purchasing.”

Duggan reveals that in time all the major SatNav providers will have the Eircode database and attendant GPS coordinates, so once somebody enters the Eircode in their SatNav, they will automatically get the GPS coordinates for a particular property.

Everyone is used to using Dublin postal districts, but if you further divide them into Dublin 4A, 4B, 4C etc, and you define those by geography, you could create postcode ghettos and postcode discrimination.”

The Business of Postcodes For businesses, the value depends on the nature of their operations.

Thanks to developments in technology, Eircode will identify each individual property in Ireland and give its GPS coordinates.

For delivery companies, the benefits are both obvious and immediate. Another sector who are keen to embrace Eircode is that of financial services, as Eircode will allow them to perform risk analyses on certain geographical in fine detail.

The benefits for the emergency services will also be immediate. Currently, when an emergency call comes in from an urban area, it takes roughly 30 seconds to identify the address accurately so an ambulance can be dispatched.

In a rural area, the same process can take in excess of five minutes. “If they get an Eircode, they have GPS coordinates and they can immediately dispatch an ambulance with a degree of certainty that they don’t currently have,” Duggan notes.

However, it is up to each individual company to decide if there is a value in Eircode for them and if they become an early or a late adopter, Duggan notes: “Most businesses will have their own customer databases. If they are going to put an Eircode onto their database, they need to decide if they want it in a separate field or if they’re going to append it to the existing address. We know that bigger companies, with large databases, want to be early adopters and see a value in encoding their databases. If you are a small business, you are probably better off waiting until you interact with your customer the next time and they give you their Eircode, which you can then add to your database, as opposed to running a big address-matching database.”

Duggan is keen to stress that Eircode are on a fixed price contract to the Department of Communications, Energy and Natural Resources. There is no potential for costs to spiral: “If they do, we lose. The State doesn’t lose.”

Mid-Year Roll-Out To date, Eircode have encoded almost 90m records across more than 20 public sector databases, including Motor Tax, Driving Licence, Revenue Commissioners, the Passport Office etc. “We have matched all those addresses and allocated Eircodes to them, so that when we launch, there will already be mail with Eircodes in place form a very early stage,” he says.

Eircode will write to every address in the country, ahead of the system’s roll-out, and will have a facility on their website, www.eircode.ie, for anyone experiencing difficulties, as well as a call centre to address queries, but Duggan expects its launch to be smooth.

“This is not like the digital switchover where at a certain date, your old TV didn’t work,” he admits. “Post will still be delivered; services will still be delivered. But Eircode will make things better.”

Retail News|January / February 2015|www.retailnews.ie|51

Drinks News Torres Partners with Sightsavers TORRES brought their innovative ‘Wine & Dine in the Dark’ concept to these shores for the first time last year, wowing the public and press alike with events that turned common preconceptions of food and wine on its head. Customers are blindfolded and then served a multi-course menu paired with Torres wines, while a representative from Torres talks them through the food and wine choices in front of them. This year, Torres have teamed up with Sightsavers, the international charity that fights preventable blindness in developing countries, to contribute a portion of each ticket to their pioneering fight against blindness. Pictured is 2FM DJ Rick O’Shea, a proud Sightsavers ambassador, launching the partnership at Bijou Restaurant in Rathgar, the location of the first Torres Wine & Dine in the Dark, which takes place on March 5.

BELVEDERE VODKA SIGNS UP WITH JAMES BOND BELVEDERE is delighted to be serving the legendary James Bond his vodka martini, marking a significant moment in the history of the iconic film series and the largest global partnership for Belvedere Vodka to date. Bond’s martini preference of ‘shaken, not stirred’ is globally recognised as an expression of his impeccable taste and unparalleled style and as such, it is only natural that Bond chooses Belvedere as he embarks on his next adventure, Spectre. To celebrate this new era of Bond and Belvedere martinis, the original luxury vodka house will release two custom made and limited edition bottles. Belvedere has replaced the iconic Belvedere Palace, to pay homage to Bond’s spiritual home, the famous MI6 headquarters, creating a truly memorable collector’s edition of 100 bottles. Belvedere’s signature blue palette will be switched for a distinctive green, a tradition dating back to MI6’s very first official, Captain Sir Mansfield Cumming, after his habit of initialling papers he had read with a C written in green ink. A 007 twist will also be applied to Belvedere’s iconic Silver Saber bottles, known for their cutting edge, metallic aesthetic and illuminating technology.

Malted Barley Excellence Awards MINISTER Simon Coveney was guest of honour at the Malted Barley Excellence Awards 2014, held at Guinness Storehouse, Dublin. The Irish Malting Barley Excellence Awards recognise excellence in malting barley production and promote sustainability in the malting barley supply chain. There are over 600 barley growers in Ireland and this year Ivan Holden (pictured) from Bagnalstown, Co. Carlow, took the overall award in malting excellence. The awards are organised by Boormalt, one of the largest producers of malt in the world and hosted

by Diageo, the largest purchaser of malting barley in Ireland.

BREAKING BAD STAR HIGHLIGHTS BUDWEISER DREAM JOB BUDWEISER Ireland’s latest ambassador, Hollywood hero and Emmy Award-winning actor, Aaron Paul, was in town recently to encourage the Irish public to sign up for the on-going Dream Job campaign. As most are already aware, Budweiser Dream Job is back for the second year, and once again is offering the people of Ireland the chance to win their dream job for one year, which includes a €40,000 cash prize, a €5,000 equipment bursary, an internship placement and support from relevant experts. “Who doesn’t have a dream?

Or a dream job? Budweiser is offering this up on a silver platter. Why wouldn’t you want to jump at it? This is why I fully support the Budweiser Dream Job project,” noted Paul, who is best known for his critically acclaimed role as Jesse Pinkman on hit TV show Breaking Bad.

FINDLATER LAUNCH LA FÉE ABSINTHE FINDLATER Wine & Spirit Group are now importing and distributing the pioneering French absinthe brand La Fée (pronounced “La Fay”) in Ireland. In 1998, La Fée was the first brand to break ground in relaxing stringent absinthe laws in France and Europe, kick-starting the absinthe revival and resurrecting an art of distilling that had been lost for almost a century. Two SKUs will be available to the Irish market initially: La Fée Absinthe Parisienne (RSP €65), distilled by a Paris-based distiller following an authentic 19th century recipe, and NV Absinthe Verte by La Fée (RSP €35), a newer, more modern progression of the absinthe style, with a lower ABV of 38%.

52|Retail News|January / February 2015|www.retailnews.ie

Off Licence of the Year Awards

Redmond’s Named Off Licence of the Year

Pictured with the National Off Licence of the Year Award 2015 are Leonardo Alves, Olwen Redmond and store owner, Jimmy Redmond.

Redmond’s of Ranelagh in Dublin was named the NOffLA Off Licence of the Year 2015.

REDMOND’s Off Licence in Ranelagh, Dublin 6, was named National Off Licence of the Year 2015 at the NOffLA Off Licence of the Year Awards 2015, which took place recently at the Honourable Society of King’s Inns, Dublin.

Now in their nineteenth year, the awards recognise and showcase excellence in the alcohol retailing industry. The awards highlight those retailers that offer exceptional service to customers and demonstrate excellence in retail standards.

Other awards saw The O’Donovan Group, Cork named Responsible Retailer of the Year 2015, McCambrige’s in Galway won the Food Retailer OffLicence of the Year 2015 title and Agnieszka Niemiec of Baggot Street Wines was named RTC Online Trainee of the Year 2015.

All 40 finalists were awarded certificates of either ‘Standard’, ‘Merit’ or ‘Excellence’ based on their performance and other awards on the night included: • • • • • •

The winners of the NOffLA Off Licence of the Year Awards celebrate.

Specialist Off-Licence Group of the Year 2015 – The O’Donovan Group, Cork; Best First Time Entrant 2015 – Number 21, Cork; Customer Service Award of the Year 2015 – O’Donovan’s, Mallow; Spirit Specialist of the Year 2015 – Deveney’s of Dundrum; Beer Specialist of the Year 2015 – Martin’s Off-Licence, Fairview; Wine Specialist of the Year 2015 – Blackrock Cellar;

Retail News|January / February 2015|www.retailnews.ie|53

Off Licence of the Year Awards • • • •

Connaught/Ulster Off-Licence of the Year 2015 – Dicey’s OffLicence, Ballyshannon; Leinster Off-Licence of the Year 2015 – The Wine Centre, Kilkenny; Dublin Off-Licence of the Year 2015 – McHugh’s Off-Licence, Kilbarack; Munster Off-Licence of the Year 2015 – Next Door, Forum Waterford.

Strict Criteria Jimmy Redmond, owner of the national winner, Redmond’s of Ranelagh, is justifiably proud of lifting his award. “It means everything,” he grins, highlighting the prestige that comes with winning the award. “It’s an independent competition, and the criteria are very strict, so it really is a full assessment of your business and business model, aimed towards how you deal ultimately with the consumer. Ultimately, it’s a vindication of what you are doing by all your peers and it’s great for all the staff and for myself, because it gives you the spur to go on to the next level.”

Perhaps more importantly, Redmond believes winning the national title will help his business.

“A lot of our customers are aware

NOffLA Chairman, Gary O’Donovan.

of the competition on a year-byyear basis, while others will see the signs in the store displaying our win,” he says. “Already, some of our customers have been congratulating us.”

Product Knowledge and Range So just how tough is it for independents to compete in today’s dog-eat-dog market?

“It is tough,” admits Jimmy Redmond. “We were the gatekeepers of the product for many years. Since the abolition of the Groceries Order, the multiples have gone down a particular route and it has become a very price conscious sector now.

There has been a seismic change in the way business is being done and we’ve all had to react to that.

Through promotions, the multiples have driven the value of the product down. It is now seen as more important to have a price point than a particular product. But that is an opportunity for us, providing we have the education and skills to take advantage of it.”

Independent off licences, Redmond explains, can differentiate themselves from the competition through their product range and product knowledge.

“In doing what they do, the multiples leave a whole market segment un-catered for. I’m talking about craft beers, different levels and qualities of wine. I’m talking about a greater depth and range.

For example, rather than carry the top four gins, we carry nearly 30 different gins. We stock about 22 different rums. In terms of craft bottled beers, we probably have 400500 different beers. That will always be our strong point.

“But we have to be innovative,” he warns. “We have to constantly look for new product to bring to market. Today’s consumer is far more aware and knowledgeable than before. We engage with our consumers all the time and listen to them. Your consumer will tell you if they’re not happy with you.

You have to listen to them and see what you can do better. It’s all about changing and doing what you did today better for tomorrow.”

Judging for the awards began in June 2014, which was the beginning of a tough but rewarding journey for all of this year’s award winners. The process culminated in a blind wine tasting, which involved participants answering questions about the unidentified wines. Final awards were allocated following this process.

54|Retail News|January / February 2015|www.retailnews.ie

On The Vine

Spain and Italy Spring into Action Jean Smullen reports on the continued growth of Italian and Spanish wines on the Irish market.

STATISTICS from Nielsen to July 2014 show that sales in the off trade of wine from Italy and Spain have grown considerably in recent years. Scan tracker data to July 2014 show Italy in fourth place with 12.1% of volume sales in the off trade, just behind France. Spain is in fifth place with 11.2% market share. If you go back to 2008, before the crash, total market share for the year for Italian wines in volume terms was 438,000 cases or 5.5% of the market and Spain sold 542,000 cases or 6.8% of the total market that year of 8m cases.

The Italian Renaissance So what is driving this growth? Well, for Italy there are two wine styles selling huge volumes, Pinot Grigio and Prosecco.

The consumer can’t get enough of these styles and they are two ‘must stock’ items for every retailer. The figures reflect this and the significant growth shown by Italy is largely driven by these two wine categories.

Amarone and Ripasso style wines from Valpolicella and the Veneto region are also driving sales of quality Italian red wine, though they are not without their problems. Poor harvests since 2010 have meant that volumes are down.

2014 was a particularly challenging vintage in Italy; summer was wet and cool and the weather had significant impact on the overall grape yield. You have to go back 18 years to find another summer so wet and cloudy and this has meant that the 2014 vintage was challenging, especially for the reds. The

yields for grapes used to produce Amarone are significantly reduced, which means this popular style is going to be more expensive. The knock-on effect is that there won’t be enough grapes available to produce the Ripasso wines in significant volumes, so prices for Ripasso style wines will also increase.

The good news is that Glera, the grape used to make Prosecco, is harvested early and was therefore not as badly affected as the red grapes, so prices should remain competitive for Prosecco. For Pinot Grigio from the Venezia Gulia and Trentino Alto Adige and the Veneto, the fine weather in September meant a healthy but slightly smaller harvest, which may also impact on prices.

Tuscany also had a difficult vintage in 2014, with a smaller than usual harvest for red wines. However, in Sicily they had a relatively good vintage, so wine prices from this region should remain competitive.

The Spanish Inquisition Spain has a wine culture as historic as France or Italy and offers a startling variety of wine styles and grape varieties.

Spain is the second biggest country in Western Europe, after France. However, it is quite lightly populated, which goes a long way towards explaining how it manages to have Europe’s largest acreage under vine, without being Europe’s largest wine producer: production figures for wine are lower than those of the rest of the EU, partly because of the dry climate.

Retail News|January / February 2015|www.retailnews.ie|55

On The Vine In addition to this, many Spanish vineyards are growing vines which are over 40 years old and therefore producing smaller yields. A good deal of work is now going on in the vineyards, with new vine varieties and new training, pruning and rooting techniques. In recent years, winemakers have been quick to take new technology to their bodegas and many of the most modern wineries in Europe are now to be found in Spain.

The key to quality in Spain are their old vines and low yields.

Spain has a huge range of wines, both red and white, to offer. With a commitment to quality and modern viticulture and winemaking techniques, as well as the history and tradition of the area, it certainly has a lot to offer at the moment and this is certainly reflected in the growth in Spanish wine sales.

We’ll look now at some of the wines available from Spain and Italy and their promotional and marketing plans for spring 2015.

From Italy, C&C Gleeson have the Lamberti Santepietre Pinot Grigio Classico and the Melini Vino Nobile di Montepulciano, DOCG.

C&C Gleeson Group New to the C&C Gleeson portfolio and available from March 2015, the Raimat Abadia Chardonnay/Albarino and Cabernet Sauvignon/Tempranillo will be on offer during March 2015 at €12.99. Raimat is new Spain: the wines come from the Costres del Segre region and are modern and innovative. Raimat is part of Spain’s Codorniu Company

to the Navarre region since the 14th century, making them one of the oldest producers in Spain. Bodega Muga is their flagship Rioja house and these wines will be on offer in the spring.

Barry & Fitzwilliam Sherry is the buzz word for the team at Barry & Fitzwilliam this year and the first six months will see many of their key sherry brands on promotion. Look out for Harvey’s Bristol Cream, Croft, and Tio Pepe, especially their Fino sherry, on offer in 75cl and half bottles.

Findlater Wine & Spirit Group Masi will be celebrating the 50th anniversary of their famous Campofiorin this year with specially-marked packs of one of Ireland’s favourite Ripasso.

New to the C&C Gleeson portfolio and This will be available from March 2015, the Raimat supported by Abadia Chardonnay/Albarino and Cabernet significant Sauvignon/Tempranillo will be on offer above-theduring March 2015 at €12.99. line consumer and these wines will appeal to activity, the wine enthusiast. From Italy, consumerC&C Gleeson have the Lamberti focused events Santepietre Pinot Grigio Classico and a visit (RSP €14) and the Melini Vino to Ireland by Nobile di Montepulciano, DOCG the much(RSP €24). loved Sandro Boscaini, so this Richmond Marketing is the year of Richmond has recently taken Campofiorin!

Masi will be over the Faustino agency and Also from celebrating the 50th is planning a major nationwide Findlater, anniversary of their marketing campaign in late spring famous Campofiorin Bodegas Torres 2015. For the next two months, this year. will be introducing Faustino VII will be on promotion at a new look and design a reduced price, while Faustino V will for its classic Sangre de Toro be on special offer just before Easter red wine. Sangre de Toro was created and throughout the month of April, so in 1954 by Miguel Torres Carbó. Torres watch out for these promotions. will be re-launching their famous Sangre de Toro with new packaging in Febvre & Co. March and stock will be neck-collared Febvre will be running a promotion to notify consumers. on their Prosecco for the independent off licences. Valdo Marca Oro Prosecco DOCG and Valdo Marca ORO Spumante Rosé will be on a promotion at €19.99 (down from €26.99) and Vini Tonon Rosé Frizzante Metico at €7.99 (down from €10).

Comans Wines Comans have a good quality Cava in their portfolio: the Castillo Perelada Cava. The Brut Reserva is made from Macabeo (40%), Marcello (30%) and Parellada (30%). Bottle fermented, it is cellared for about 15 months before disgorging. Their portfolio also includes Bodegas Ochoa, a family estate, linked

The hugely popular Sangre de Toro red wine will have a new look this year.

A moment of pleasure

Café Crème is the world’s No.1 small cigar because of you.

Café Crème offers: • A contemporary look and feel • A high shelf impact 56%

CAFÉ • Café Crème accounts for over CRÈME 34% of all cigars smoked in the Republic of Ireland

THIS ADVERTISEMENT IS FOR THE INFORMATION OF TOBACCO TRADERS ONLY

Smoking seriously harms you and others around you

Retail News|January / February 2015|www.retailnews.ie|57

Market News BURTON’S FISH ‘N’ CHIPS BURTON’S Biscuit Company is launching its phenomenally successful 1980s savoury snack brand, Fish ‘n’ Chips, into Ireland. The £10.5m (€13.39m) snack was re-introduced in the UK in early 2014 in response to overwhelming public demand (Source: Nielsen MAT to 06/12/14). “Burton’s Fish ‘n’ Chips has been the star performer in the UK savoury biscuits market for the last 12 months, hitting £10.5m (€13.39m) in value sales in its first year and responsible for a 50% share of savoury biscuit growth,” says David Costello, Head of Customer Category Management at Burton’s Biscuit Company. “We’re confident that this iconic brand will play a key role in driving category growth within Ireland’s €273m biscuit market (Source: Euromonitor Report 2014).” Burton’s Fish ‘n’ Chips will be available in multipacks of five 25g bags, 125g bags (both with an rrp of €2.49) and 40g packs (rrp €0.99). For enquiries, call Flanagan’s Foods on (01) 4506100.

EXTRA SALES FOR GUM LEADER 2015 is set to be a landmark year for Extra, Ireland’s number one gum brand, which will see a number of exciting initiatives introduced to build on its recent success. Worth €23m, up +8% (Source: Nielsen 2014 MAT value sales versus 2013 28.12.14), Extra is the driving force behind the gum category, which is growing in volume and value sales. The first of these initiatives will see Wrigley strengthen Extra’s portfolio from February by incorporating Orbit Peppermint and Spearmint into its range, as well as the launch of two new soft-chew flavours – Strawberry and Bubblegum. The new flavours are designed to increase penetration by attracting new younger chewers to the category and to tap in to the growing consumer trend towards oral care and fruit flavoured products. The launch will be supported by a 16-week long television advertising campaign, in addition to strong in store activation to drive trial and adoption. For more information, call (01) 4353250 or email display.ie@wrigley.com.

POCKET FRIENDLY PACKS AND PRICES JOHN Player’s existing 12.5g Combi Box of gV Smooth has now successfully moved to a new 9g box, retailing at a very pocket friendly €4! To support the introduction, John Player are offering €5 off every outer of 9g, which increases the trade margin from 10% to 25% and the cash margin from €0.33 to €0.83. This offer is only available while stocks last. gV Smooth is also available in a 12.5g pouch format which includes papers and retails at €5.30 and is the cheapest 12.5g pouch offering in the market. The gV Smooth brand was launched by John Player in March 2014. Already, over 192,000 packs have been sold into the trade. Orders for gV Smooth can be placed online at www.johnplayer.ie or by phoning John Player Trade Sales on (01) 2434900.

MAYFAIR KING SIZE FINE MAYFAIR, Ireland’s market-leading cigarette brand (Source: Nielsen Market Track, December 2014), is proud to introduce Mayfair King Size Fine, a 4mg, Lower Tar and Nicotine product. Priced at €8.50, Mayfair King Size Fine offers a quality, value-priced, Lower Tar and Nicotine product in recognition of the changing behaviour of existing adult smokers. Please note that lower tar and nicotine does not mean a reduced risk product.

CAT CLUB RELAUNCH AS part of the Cat Club re-launch, new improved formulations have been introduced across the range, improving the quality and palatability of the brand. Cat Club has also undergone a packaging redesign, which will increase the brand’s identity on shelf. A new departure for Cat Club is the introduction of a new Poultry Selection Chunks in Gravy 6-Pack, to complement the current Cat Club Variety Chunks in Jelly 6-Pack. Cat Club has also introduced two new Variety 3 Packs, Price Marked at €2.00, offering the customer value for money and the retailer strong margin. Cat Club has a proven sales record so the re-launch can only increase sales for retailers. Cat Club will also be supported by a strong advertising campaign and promotional activity throughout the coming months. For more information, see www.facebook.com/catclubcatfood.

58|Retail News|January / February 2015|www.retailnews.ie

Shelf Life NEW research commissioned

by Durex has revealed that when it comes to sexual habits, the majority of Irish people (61%) prefer reality to the lure of fiction. As for trying new things in the bedroom, a third of Ireland’s adults have revealed that they are lacking inspiration in this department, and need help.

Durex has the answer with the launch of their tantalising new video and expert guide called #50GamesToPlay, in order to inspire the one third of Irish adults that were planning on trying something new this Valentine’s Day. Durex’s sex and relationship expert, who collaborated on the #50GamesToPlay Guide, Alix Fox, is pictured with Dan Brown at the launch of the research, which also saw Durex launch their new Real Feel range of next generation condoms and pleasure gel.

IRISH consumers’ love affair with Brown Sauce continues, as sales of the sauce have seen a 32% increase for Ireland’s leading discount retailer Dealz. Recent UK figures from market research company Mintel show that sales of brown sauce have dropped by 19% in the last year. However, Irish consumers purchased more of the condiment in 2014 than previous years and are still enjoying Brown Sauce on foods such as full Irish breakfasts, bacon sandwiches or chips and baked beans.

ARYZTA Food Solutions Ireland (formerly Cuisine de France) launched a very exciting Valentine’s campaign earlier this month for their bakery brand, Cuisine de France.

L’Amour, a love heart shaped buttery brioche with chocolate chips, was launched in-store for a limited time period of two weeks. The L’Amour campaign was supported by in-store PoS, packaging and a digital marketing campaign on their Facebook and twitter pages.

“L’Amour was ideal for retailers looking for a unique Valentine’s treat for their consumers,” noted Shane Vaughan, Marketing Manager at Aryzta Food Solutions Ireland. “A first for the bakery sector in Ireland, we wanted to create something unique and innovative and celebrate gifting with a difference. The response to L’Amour has been phenomenal and we look forward to bringing these unique creations to you in 2015.”

ALDI Stores (Ireland) announced a new agreement with Co. Monaghan’s Connolly Meats that will see the Scotstown-based pork processor supply Aldi with a new range of sliced bacon and bacon joint products. The new partnership with Aldi is expected to lead to the creation of five new jobs at Connolly Meats. The new range will be introduced to Aldi’s 113 stores across Ireland over the coming months.

DUBLIN-based Boutique Bake, founded by friends Catherine Buggy and Suzanne Lynch, has secured a contract with Tesco Ireland which will see the brand’s gourmet baking mixes stocked in 11 Tesco stores in Dublin and Wicklow, as a result of the brand’s participation in the 2014 Tesco Bord Bia Supplier Development Programme. Boutique Bake produces award winning gourmet baking mixes, including ‘The Zingy One’, lemon drizzle cake mix; ‘The Rustic One, seeded brown bread mix; ‘The Cheeky One’, carrot cake mix; ‘The Gooey One’, Belgian chocolate brownie mix; and ‘The Chewy One’, super seed flapjack mix.

CONGRATULATIONS to regular RETAIL NEWS photographer, Clodagh Kilcoyne (pictured), who collected second place in the Press Photographers of Ireland 2015 prize in the Nature and Environment category for her photograph entitled ‘A Gull’s Gall’, depicting a scene where a plucky seagull attempted to steal a fish from the jaws of a common seal and was met with an unexpected reaction at Kilmore Quay, Wexford. Clodagh was also shortlisted in the News section, with an image from the late Taoiseach, Albert Reynolds’ funeral, entitled ‘Goodbye, Dad’. The exhibition of winning photographs is visiting selected venues nationwide.

See www.ppai.ie for more information.

CULLY & Sully have linked up with Heart Children Ireland, pledging to make a donation from sales of their Limited Edition Magic Bean Soup to this very worthy cause. Magic Bean Soup is totally gluten and dairy free, making it good for all hearts. Heart Children Ireland is a support group for parents and families of children with a Congenital Heart Disorder.

CHD is one of the most common defects, affecting one in every 100 children.

They are a nationwide organisation and receive no government funding. With the launch of the Magic Bean Soup, Cully & Sully are hoping to raise awareness of this charity and make a welcome donation to help Heart Children Ireland continue the amazing work they carry out with families of children with CHD. PAYZONE has announced the appointment of Pat Cronin as its new Head of IT Production and Administration.

Pat comes to Payzone from Boylesports, where he held the position of Head of IT Infrastructure, and will lend his expertise in IT systems management and technical innovation to his new role. Pat’s key responsibilities within his new role will be management of all production systems, networking and retail deployments.

KITKAT® will launch a groundbreaking new marketing campaign for 2015 ‘Celebrate the Breaks’ KITKAT® brand is now worth €14.3m* and has the highest level of awareness and loyalty amongst all confectionery brands** KITKAT® Toffee Treat will be available as a limited edition 4 Finger pack from February.

Each 4 Finger bar is a delicious combination of crispy wafer finger covered in a blend of toffee flavour white and milk chocolate

How do you have your

?

#mybreak ® Reg. Trademark of Société des Produits Nestlé S.A. * Source: Nielsen Total Scantrack YTD Dec 28/2014 ** Source: 2014 Millward Brown Brand Equity and Tracking Study

...so stock up today.

McVitie’s, enjoyed by Irish families for generations, is giving shoppers a chance to win a sweeet friend. Our new on-pack promotion is supported by a €1 million campaign, including TV, digital, social media and bespoke shopper activity – it’s sure to win even more hearts.

Promotional packs are available from late January so place your order now.

On-pack promotion open to UK & ROI residents aged 18+ only from 19/01/15-01/07/15. Normal exclusions apply. Purchase necessary.

Entry by text only, charged at standard network rate. Internet access required to claim prize. See mcvities.co.uk for full T&Cs.