The other big concern is the With the trade deal still to be done there are plenty of issues to be dealt

UK-EU negotiations a big deal for Ir ish retailers

A CLIFF edge of December 31 is not enough time to ensure a comprehensive future trade deal for food and drink between the UK and the EU, according to retailer and supplier representatives in Ireland. Boris Johnson, the British PM, has set an end of year deadline for a trade deal with the EU. But this deadline is not feasible in the context of negotiating a complex deal, Paul Kelly, Director of Food Drink Ireland (FDI) told Retail News. "When you look at the full range of what needs to be covered - food, goods, security, air travel - most people accept it will be impossible to get all that done in 11 months. Business needs clarity. The risk of a no deal has not gone away," said Kelly.

The topic of a post-Brexit trade deal was on the agenda at the recent Retail Consultation Forum, conducted by the Department of Enterprise, and attended by business and retail bodies that included RGDATA, ISME, and Retail Ireland. JP Kennedy, Commercial Director of Retail Excellence, came away from the Forum "with the sense there is no taking for granted that there will be a quota-free or duty-free agreement. It is on a knife edge."

Despite avoiding the worst case scenario - a customs border in Ireland - the stakes are still high around the UK's departure from the EU. A long-established and tariff-free supply chain between Ireland and the UK is under threat. The

UK accounts for around 34% of all food and drink exports, including almost half (47%) of our beef exports.

FDI have called for food and drink to be front and centre of negotiations. The organisation wants a focus on customs and regulatory co-operation to ensure a continuation of established trade flows, without major changes.

"The EU's revised political declaration, which is going to the general counsel for approval at the end of February specifically says the ambition is a free trade agreement that ensures no tariffs, fees, charges or quotas. That is the starting point from the European side," said Kelly.

Whatever the outcome, retailers are likely to be impacted. The UK is the main source of Irish imports, accounting for 20.1% of all products brought into the country, according to the Central Statistics Office (CSO). "You are going to see a different trading relationship between the Union and the UK. That will reflect itself at shelf level," explained Kelly.

BWG Group acquires Heaney Meats

BWG Group has completed the acquisition of Heaney Meats Catering Co. Limited, a large supplier of premium quality meat products to the foodservice sector in Ireland. This follows clearance of the acquisition by the Competition and Consumer Protection Commission on January 10, 2020.

“We are delighted to have completed the acquisition of Heaney Meats, which will expand and enhance our meat offering and further strengthen our market leading position in the +€2 billion foodservice sector,” noted Leo Crawford, Group CEO, BWG Group. “Heaney Meats is very well regarded, delivers a great service to its customers across Ireland and we now look forward to working with them to further grow our combined business.”

Galway-based Heaney Meats specialises in the preparation and distribution of premium quality beef, lamb, poultry, pork and bacon to the foodservice sector, with annual sales of approximately €24m. The business has been the recipient of multiple industry awards and has developed well-invested supply chain operations that include a fleet of 25 refrigerated vehicles. Generations of the Heaney family have been master butchers stretching back over 300 years, and Heaney Meats will continue to be led by its current Managing Directors, Shayne and Kenneth Heaney.

UK-EU negotiations a big deal for Ir ish retailers

"It's unclear what bigger multinational manufacturers will do," said Kennedy. "Many of our brands are now international, so perhaps the impact may not be stark. Cornflakes is no longer a national brand: it's global, and they will find different supply chains to move around in."

But Retail Excellence recommends that retail companies should plan ahead. Even in the event of a no-tariff agreement, the logistics of moving goods and transporting food will require change.

"Even in an ideal scenario, there will be cost implications to the supply chain, which will feed down to the consumer," said Kennedy. "The best case scenario will still mean elongated delays. If a 40-foot container comes into Dublin Port, and it has high risk goods, it will be put into quarantine and checked. That could take up to 72 hours. You can't have a frictionless border if you're importing foodstuffs, in case there is contamination or food scares in the supply chain. We have to remember the Foot & Mouth issue in Ireland and the UK. That was a complete lockdown."

Kelly advised suppliers and retailers to work with their representative bodies to make sure their voices are heard. "Retailers need to keep their preparations for a no deal alive," he added. "It might need to be activated quickly as we head towards the end of the year." The clock is ticking, but without an extension beyond December 31, a no-tariff deal might be unachievable. "Suppliers and retailers, are very dynamic and able to adapt to new situations," said Kelly. "But if we end up with a big shock at the end of the year, we are concerned that businesses won't be able to adapt.”

Election impacts customer confidence FOLLOWING a record-breaking festive season for the Irish grocery market, the buzz around Veganuary and Dry January failed to outweigh falling consumer confidence in the post-Christmas trading period. Figures from Kantar for the 12 weeks to January 26, 2020, show that growth slowed to 1.3%, the slowest rate recorded since March 2017, as shoppers tightened their purse strings ahead of the General Election.

However, the market found a bright spot in increased sales of plant-based products as many shoppers pledged to make healthier choices at the start of the year. “Retailers embraced Veganuary, which brought plant-based foods to the fore,” noted Matthew Botham, strategic insight director at Kantar. “Sales of alternative milks grew by 20%, while meat, fish and poultry dropped by 3%.

“Though shoppers reduced their consumption of meat and dairy, households didn’t turn their backs on animal products completely. This points to an increase in flexitarian lifestyles, as people look to cut back rather than go cold turkey.”

Dry January also made its mark on supermarket sales, with the number of households abstaining from alcohol purchases increasing to 22%, up from 19% this time last year. The only retailer to buck the trend was SuperValu, which grew its alcohol sales by 7.6%.

Overall, Lidl was the strongest performing retailer this period, increasing its market share by 0.4 percentage points to 11%. “Lidl’s growth was driven by increased basket sizes as shoppers added three more items to their shop than the market average. More and more people are picking up their groceries at the retailer and 71.4% of households chose to shop at Lidl at least once over the latest period,” Botham explained.

SuperValu was the only other retailer to accelerate growth over the 12 weeks as its market share grew by 0.1 percentage points to 21.7%.

At the other end of the market, Tesco’s sales were unchanged from last year as the grocer conceded 0.3 percentage points of market share. “As the General Election loomed, falling consumer confidence meant a decline in shopper frequency for the market as a whole. While Tesco bucked this trend and shoppers visited the retailer more often, it wasn’t enough to boost sales and growth fell to 0.0%,” Botham noted.

“Part of Tesco’s response was to take action by addressing consumer demand for sustainable packaging. The retailer made headlines with the announcement that it’s removing plastic wrap from its multipack tinned items, while still offering the multi-buy deal to customers. Given that shoppers bought over 59m packs of tinned goods over the past year, this is a significant step towards reducing plastic waste and is bound to be popular with eco-conscious consumers.”

Aldi also continued to press home its sustainability credentials by removing the polystyrene trays from its pizza range. The retailer again posted strong growth this period, increasing sales by 5.4%. Meanwhile, Dunnes had another formidable 12 weeks, with sales rising by 3.3%. However, that was a slower increase than in recent months, as falling basket sizes and lower prices impacted growth at Ireland’s largest retailer.

Grocery market inflation stands at 0.9% for the 12 weeks period ending January 26, 2020.

MARKET SHARE - TOTAL GROCERY Includes expenditure across Food, Beverages, Alcohol, Household and Health & Beauty categories

Total Take Home Grocery - Ireland Consumer Spend

12 Weeks to 27/01/19 % * 12 Weeks to 26/01/20 % * change** %

Total Grocers 100.0% 100.0% 1.3% Total Multiples 88.3% 89.5% 2.7% SuperValu 21.6% 21.7% 2.0% Tesco 22.1% 21.8% 0.0% Dunnes 23.1% 23.6% 3.3% Lidl 10.6% 11.0% 5.6% Aldi 10.9% 11.4% 5.4% Other Outlets** 11.7% 10.5% -9.4%

New regulations on alcohol sales introduced

THE Government has signed in new regulations that ban loyalty card programmes which reward alcohol purchases. The regulations also outlaw short-term price promotions on drink products, and multi-buy promotions that include alcohol.

Former Health Minister Simon Harris TD introduced in the regulations last month as part of the Public Health (Alcohol) Act, but extended the deadline to January 11, 2021, to allow businesses time to prepare.

"The legislation prevents supermarket chains from doing ‘Buy six pizzas and get a free beer’," JP Kennedy, Commercial Director, Retail Excellence, told Retail News. He said that having consulted with independent off-licences such as Molloy’s and O’Brien’s, "the three day, short-term, ban on promotions wasn’t a major issue for most of our members, but bulk discount promotions do trigger additional sales volumes.”

Loyalty cards are commonplace in retail chains, but they are not a significant part of business around alcohol sales, according to some retailers.

“Our members find them an effective way of communication and letting consumers know what is available,” said Kennedy. “But in terms of driving business, wine is probably a face-to-face transaction. Supermarkets use loyalty cards more for understanding what the customers are buying. Talking to our members, it’s more about generating information and communication than revenue.”

SuperValu welcomed these latest additions to the Alcohol Act: “As a community retailer, SuperValu understands the role it has to play in society with regard to the responsible sale and promotion of alcohol and is a member of the Responsible Retailers of Alcohol in Ireland (RRAI). We adhere to all

legislation and will fully comply with the Act.”

Patricia Callan, Director of Drinks Ireland, the representative group for drinks manufacturers and suppliers in Ireland, concurred: “Overall, we support measures to tackle alcohol misuse that are proportionate, effective and evidencebased. This includes alcohol sold at a discount. The drinks industry is committed to tackling alcohol misuse and underage drinking and has demonstrated significant leadership over the years in helping to achieve this.”

PwC joins forces with FMCG Directors Network PWC has announced its new partnership with one of Ireland's leading industry groups, the FMCG Directors Network, part of the Executive Institute. This joint collaboration aims to provide a peer-to-peer platform for discussion on industry challenges and opportunities, while sharing practical insight for success in this important industry.

“Through this important partnership, PwC will bring its Irish and international thought leadership on important industry trends, helping companies in the FMCG industry be fit for a digitally enabled sustainable future,” said Owen McFeely, Director, PwC Retail & Consumer Practice.

Conor Morris, Managing Director, The Executive Institute, added: “We are very excited that PwC will be partnering with The Institute on The FMCG Directors Network in 2020. The PwC Retail & Consumer Practice will bring a level of insight and expertise to the series that can only enhance the network member experience throughout the year. We are looking forward to having a very successful partnership.”

The partnership with the Executive Institute will include PwC's sponsorship of the FMCG Directors Network key events scheduled throughout 2020. Pictured launching PwC's new partnership with one of Ireland's leading industry groups, the FMCG Directors Network, part of the Executive Institute, are (l-r): Conor Morris, Managing Director, Executive Institute; Owen McFeely, Director, PwC Retail & Consumer Practice; and Grace McCullen, PwC Retail & Consumer Practice.

Limerick scoops top prize at Musgrave MarketPlace awards

MUSGRAVE MarketPlace Limerick was named ‘Region of the Year’ at the eighth annual Musgrave MarketPlace Region of the Year Awards, which took place recently at Farnham Estate & Spa, Cavan.

This year’s event saw 14 award categories in total, with 160 Musgrave Wholesale Partners staff in attendance. The Limerick branch received the top award due to its continued remarkable sales performance, QA audits, mystery shopper scores and employee engagement results over the course of 2019.

“This is a tremendous achievement for all of us here at Musgrave MarketPlace Limerick and we are honoured to be recognised as Region of the Year,” said Jim Bourke, General Manager of the Limerick branch. “Our team is committed, hardworking and focused on the common goal of driving sales and wholesale excellence. I wish to thank each and every one of our team for their dedication and passion in providing a first-class customer experience.”

Also speaking about the Region of the Year Awards, Paul Kerrigan, MarketPlace Director at Musgrave MarketPlace, said: “I would like to congratulate Jim and his hardworking team at Limerick, as well as all our winners across the country on their achievements. The Region of the Year awards are a great way to celebrate a strong year, as well as the teams and individuals that work so hard towards our goal of leading the future of food wholesaling and convenience retailing.”

Other awards announced on the night recognised best employee initiatives for improving efficiency in the workplace, best customer service champion, as voted for by Musgrave MarketPlace customers, and best central support and commercial colleagues. The full list of winners on the night included: • Region of the Year Winner: Limerick Paul Kerrigan, MarketPlace Director at Musgrave MarketPlace, is pictured presenting the Region of the Year Award to Jim Bourke, General Manager, Musgrave MarketPlace Limerick, and staff from the Limerick branch, at the eighth annual Musgrave MarketPlace Region of the Year Awards. • Region of the Year Runner-Up: Ballymun • Central Support Colleague of the Year ROI: Ann Quirke • Commercial Colleague of the Year ROI: Colin Noonan • Warehouse Operative of the Year ROI: Dario Pocuca • Warehouse Operative of the Year NI: Adam Dodds • Driver of the Year ROI: Aiden Gennery • Driver of the Year NI: Dariusz Kaczmarek • Gossip Success Winner: Erkan Aydemir • Sales Person of the Year Runners Up: Kenny Dowling, Alan Doran • Sales Person of the Year: Jonathan Newman • Perfect Attendance ROI: Pawel Pabian • Customer Service Winner: Troy Kelly • Customer Service Champions: Elaine Kearney, Kieran Doyle, Joe Bosonett, Karen Callaghan, Larry Hawe, Luke Davis, Gallina Poskrobko, Kathleen Clark, Lyndsay Lindsay.

Aldi staff to plant 100,000 trees over five years

ALDI staff were joined by former Minister of State for Finance, Public Expenditure & Reform, Patrick O’Donovan TD, in Rockfield, Limerick, recently to plant 16,000 trees to launch Aldi’s commitment to planting 100,000 new trees over the next five years. The initiative is the latest step in Aldi’s Carbon Reduction Pledge, which saw Aldi achieve Carbon Neutral status at the beginning of 2019.

The new plantation of native Irish woodland will help to encourage local flora and fauna while aligning with the Government’s aim to plant 22m trees a year until 2040.

Aldi Ireland has also increased its minimum rate of pay for 2020 to €12.30 per hour since February 1. Aldi was the first Irish retailer to implement The Living Wage Technical Group’s rate for its employees, reaffirming its position as Ireland’s highest paying supermarket. Aldi Store Assistants now earn up to €14.10 per hour.

Aldi Ireland staff are pictured with former Minister of State for Finance, Public Expenditure & Reform, Patrick O’Donovan TD, in Rockfield, Limerick, recently to plant 16,000 trees to launch Aldi’s commitment to planting 100,000 new trees over the next five years.

Golden Bake wins €85,000 advertising award from Love Irish Food

GOLDEN Bake has been named the winner of the Love Irish Food Brand Development Award for 2019 and awarded a fully funded €85,000 advertising campaign. The award is run in conjunction with Exterion Media, Owens DDB Advertising, Innovate Solutions, and Designbank MBD.

The award win will provide Golden Bake with €75,000 in advertising space, scheduled across Exterion Media’s retail portfolio and retail digital network. The extensive out-of-home campaign will appear nationally for two weeks and includes print production and digital animation. Additionally, Owens DDB Advertising Agency will provide the winner with up to €10,000 creative bursary to create and develop the outdoor advertising campaign. Golden Bake will also receive a €5,000 bespoke product sensory research package from Innovate Solutions. The second award this year went to west Cork company Spice O’Life who receive €17,000 media and promotions support. Golden Bake, based in Coolock, Dublin, employing 70 people, has been producing frozen puff pastry products of the highest quality since its opening in 1987.

“Winning the Love Irish Food Brand Development Award has been a huge achievement for the entire team at Golden Bake,” said Robin Jones, CEO of Golden Bake. “It is important for our brand to be aligned with Love Irish Food and the work they do to support and highlight local food brands that are made in Ireland.”

Kieran Rumley, Executive Director of Love Irish Food, said: “2019 was a strong year for Love Irish Food and we are proud to have helped all of the Love Irish Food brands increase their

Pictured are (l-r): Kieran Rumley, Executive Director, Love Irish Food; Robin Jones, CEO, Golden Bake; and Antoinette O'Callaghan, Marketing Manager, Exterion Media (Ireland). brand exposure and drive sales. We had the highest level of entries for the award, a reflection of the importance of the award and the benefit to Love Irish Food members, especially during the uncertainty of Brexit. I’m delighted to congratulate Golden Bake on their award win and am looking forward to seeing what the brand will accomplish in 2020.”

Nestlé invests in food-grade recycled plastics

NESTLÉ is set to invest up to €1.9 billion to lead the shift from virgin plastics to food-grade recycled plastics and to accelerate the development of innovative sustainable packaging solutions.

Building on its 2018 commitment to make 100% of its packaging recyclable or reusable by 2025, Nestlé will reduce its use of virgin plastics by one third in the same period, whilst working with others to advance the circular economy and endeavor to clean up plastic waste from oceans, lakes and rivers.

Most plastics are difficult to recycle for food packaging, leading to a limited supply of food-grade recycled plastics. To create a market, Nestlé is therefore committed to sourcing up to 2m metric tons of food-grade recycled plastics and allocating more than €1.4 billion to pay a premium for these materials between now and 2025. Nestlé will seek operational efficiencies to keep this initiative earnings neutral.

Packaging innovation, including new materials, refill systems and recycling solutions, is another key challenge on the path towards a waste-free future. In addition to its significant inhouse research through the Nestlé Institute of Packaging Sciences, the company will launch a €232m sustainable packaging venture fund to invest in start-up companies that focus on these areas.

“No plastic should end up in landfill or as litter,” said Mark Schneider, CEO of Nestlé. “Making recycled plastics safe for food is an enormous challenge for our industry. That is why in addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable. We are taking bold steps to create a wider market for food-grade recycled plastics and boost innovation in the packaging industry. We welcome others to join us on this journey.”

C I G A R E T T E FLAVOUR BAN

WHAT IS CHANGING AND WHEN? 20TH MAY 2020

All flavoured cigarettes and cigarettes with flavour capsules will be banned from this date. In effect, this means a ban on menthol cigarettes.

WHAT’S HAPPENING NOW?

It is business as usual until the ban comes into effect. Continuing to sell through until the last day will ensure that you do not lose any potential sales.

FOR FURTHER INFORMATION: Speak to your JTI contact, call 01 404 0240 or email customerservices.Ireland@jti.com

“JTI Ireland will support you at every step to manage these changes in your business”

DEREK MOONEY JTI IRELAND SALES DIRECTOR

Centra Dame Street wins Store of the Year award

Pictured at the Centra National Conference in Killarney where Thornton’s Centra Dame Street received the award for Store of the Year and the High Convenience Store Award are (l-r): Dan Curtin, Sales Director, Centra; store owner Paul Thornton; JF Michel, 3; store owner Ger Thornton; and Martin Kelleher, Managing Director, Centra. CENTRA Dame Street in Dublin was named Centra Store of the Year at the Centra National Conference, which took place at the Great Southern Hotel, Killarney. Centra Dame Street also won the High Convenience award at the event.

Store owners Paul and Ger Thornton received the awards from Martin Kelleher, Managing Director of Centra, Dan Curtin, Centra Sales Director, and JF Michel, Account Director of Three Business, competition sponsors.

As part of the competitive process, retail consultant Dr Alan Collins audited Centra stores throughout Ireland, with each participating store assessed for its range, quality, customer service, hygiene, service offering and local community involvement.

Store owners Paul and Ger Thornton paid tribute to the team at Centra in Dame Street and acknowledged that their enthusiasm and dedication were determining factors in the Dublin store being selected as 2020 Centra Store of the Year and High Convenience Store of the Year.

“It is a great honour to accept these awards on behalf of all our hard-working and dedicated staff members at Centra Dame Street,” they said. “Receiving this recognition would not have happened without our team and it is great to see their efforts rewarded. They are a super team of professionals who constantly strive for the best service, healthy convenience offering and value of money to our customers.”

Commenting on the double award winners, competition judge Dr Alan Collins said: “You can sense passion as soon as you step foot in the door at Centra Dame Street. There’s something about the store that makes it so special. Perhaps it is how it is always a delight to engage with owners who are passionate about their stores, colleagues, customers and communities, which is in abundance at the Dublin store. It is the type of store everybody should have and want in their communities. Congratulations to everyone at Centra Dame Street on this great achievement”.

Dan Curtin, Sales Director, Centra, commended all Centra retailers for their contribution to redefining convenience shopping: “Centra stores, such as Centra Dame Street, are perfect examples of independent retailers working hard in their local communities to ensure their customers have the best experience in their store. They provide choice, value and excellent service within their locality on a daily basis. Congratulations to the team at Centra Dame Street, who have gone above and beyond to achieve top class standards right across the store.” The Winners of the Centra Store of the Year Awards are: • Centra Store of the Year: Thornton’s Centra Dame Street, Dublin • High Convenience Store of the Year: Thornton’s Centra Dame Street, Dublin • Convenience Store of the Year: Dunne’s Centra Ardee, Co. Louth • Neighbourhood Store of the Year: Shanahan’s Centra Borrisoleigh, Thurles, Co. Tipperary

Warning for retailers from Rentokil on pest control RENTOKIL, one of Ireland’s leading pest control providers, is alerting retailers to be aware of a recent change in national rules regarding pest control. Permanent toxic baiting, the use of bait and toxic pest control solutions, is no longer permitted unless in specific situations where all other alternatives have been considered by qualified pest control experts. As a result, businesses will need to focus on integrated pest management techniques including non-toxic pest control solutions.

“Businesses need to be aware of the new rules regarding toxic and non-toxic pest control solutions,” noted Dr Colm Moore, Area Technical Manager for Rentokil. “With so many regulations to keep on top of today, businesses often overlook the area of pest control, but it is just as crucial to be aware of as rules relating to privacy or health and safety. Businesses, particularly those in the food and beverage, hospitality, retail, and pharmaceutical sectors, will have to start utilising alternative types of pest control, such as digital solutions.”

Rentokil has developed innovative digital pest control solutions which do not involve toxic baiting, including PestConnect, a system of technological devices that detect and capture or humanely kill a variety of pests using traps, bait stations and monitoring units.

Tesco and ESB announce nationwide roll-out of vehicle charge points

TESCO Ireland, in partnership with ESB, has announced the rollout of dual outlet electric vehicle chargers which will be installed at 52 of its store carparks, spanning 18 counties nationwide. The new electric vehicle charging sites will allow Tesco customers to easily charge their EVs conveniently whilst shopping, positively contributing to a cleaner environment.

Under this partnership, ESB will supply, install and operate the charge points. The 18-county roll out will commence in early 2020 with completion expected by the autumn.

The new ESB chargers will be 22kW dual chargers, providing charging capacity to two vehicles simultaneously. The chargers will be capable of providing up to 145km of driving range in 60 minutes.

“At Tesco, we recognise that a growing number of our customers who visit our stores are using electric vehicles,” noted Kari Daniels, CEO, Tesco Ireland. “With all our electricity already coming from renewable sources across our network, we want to support our customers with convenience-based charging. Partnering with ESB installing these charging sites nationwide will help the Government’s Climate Action Plan and our aim as a business to become a zero-carbon retailer by 2050.”

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Pictured are (l-r): Marguerite Sayers, Director of Customer Solutions, ESB Ireland, and Kari Daniels, CEO, Tesco Ireland, at Tesco Liffey Valley, one of the 52 sites across the country to provide electric vehicle charging on the Tesco store network.

Marguerite Sayers, Director of Customer Solutions, ESB Ireland, said: “ESB is proud to work with Tesco Ireland in delivering this charging infrastructure for its customers. The electrification of transport is a key element of our Brighter Future Strategy and our partnership with Tesco Ireland reaffirms our commitment to this. Since 2010, we have rolled out a nationwide public EV charging network, with plans to launch our first high-powered charging hubs in 2020, with support from the Irish Government’s Climate Action Fund. The addition of these chargers at Tesco stores ensures more customers will have a reliable, accessible network for the benefit of all users.”

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