Retail News Sept

SEPTEMBER 2014

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www.retailnews.ie|September 2014|Contents|3

Contents

Making A Difference THE entire team at Retail News welcomed the news that WH Smith have withdrawn, pending review, their request for a promotional fee of £500 (€630) from Irish publishers to stock their titles in the retailer’s airport stores in Ireland, which was revealed in our exclusive story in the July/August issue of Retail News The fee pertained to seven WH Smith stores in Dublin airports and one in Shannon and the move to withdraw it has been broadly welcomed by Ireland’s magazine industry. However, as noted, the request for a promotional fee has not gone away and is merely “under review”. Watch this space!

Breaking news stories like this one is just one of the ways that Retail News serves Ireland’s grocery sector.

In this issue, we unveil new research, in association with Retail Ireland, which reveals that shopping around is very much the norm when it comes to grocery shopping, while price and value remain key concerns for consumers (Page 18-22).

This brand new research, which was carried out by Millward Brown, also takes note of rising consumer confidence and quantifies the importance of an online and social media presence to Irish grocery shoppers. The results, some of which are surprising, make required reading for the FMCG market.

Also in this issue, Vincent Jennings, CSNA Chief Executive, gives a hard-hitting interview on the real issues facing Irish retailers, from upward only rent reviews to local authority rates (Page 24), and we preview Food & Hospitality Ireland, which takes place on September 17 and 18 at the Citywest Events Centre, Dublin, and promises to be a ‘must see’ event for Ireland’s retail, food and hospitality sectors.

Kathleen Belton Editorial Director kathleenbelton@retailnews.ie

News 4 Row over utilities

surcharge gathers pace.

Special Report 18 New research from

Retail News, in association with Retail Ireland, gets to the heart of Irish shopping habits and is required reading for Irish retailers and brand owners.

4 18 5

Dunnes Stores in Labour Court showdown over workers’ rights; NPP calls on business to join the evolution.

Retailers dispute Australian cigarette data; New ownership structure at BWG Group.

7

Repak exceeds EU targets for packaging recycling; C&C confirms acquisition of Gleeson Group.

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Irish Food Co-op 49 A number of Irish

Summer boost for Dunnes Stores; Consumer confidence on the rise; Free BIM Green Resource Efficiency Seminars to be held in October.

Newspaper readership remains strong: JNRS; Aldi wins 35 awards at ‘Food Oscars’; Biggest FMCG slowdown in UK since WWII. Something big brewing at Guinness; 25 years of Winning Streak; Costcutter conference takes place.

The Retail News Interview 24 Vincent Jennings,

Chief Executive of the CSNA, lets loose on local authorities, fires a broadside at the banks, and rails against the planned reintroduction of JLCs for the grocery sector and the absurdities of upward only rent reviews.

Food & Hospitality Ireland 28 If you’re in retail,

food or hospitality, Food & Hospitality Ireland – taking place on September 17 and 18 at the Citywest Events Centre – is a trade expo that’s not to be missed!

Tobacco: Plain Packaging 32 Ireland can’t afford

to weaken trademark rights, writes Michael D. Thomas, Assistant Professor of Economics at Creighton University.

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

calls for bold action to stimulate spending; Second Retail Consultation Forum held; Time to nurture retail recovery.

food producers have joined forces to form the Irish Food Co-op.

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Retail Ireland: Monthly Update 41 Budget submission

Production: Jim Heron

Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

Branding 52 Big technology-

driven changes are ahead for FMCG brands, which could see a vast reduction in the amount of brands on-shelf, writes Martin Crotty, Managing Director, BFK Brand.

Music Use In-Store 54 If you play music in

your store via radio, TV etc, you need an IMRO licence, according to Brendan Griffin, Director of Licensing, IMRO.

On The Vine 56 Jean Smullen

reports on the battle of the New World wine heavyweights: Australia and Chile.

Legal Matters 58 New EU legislation

means no more extra charges for paying with credit cards online.

REGULARS & REPORTS

11 12 34 42 50 60 61 62

Tax & Finance Industry News Confectionery Fuels Bakery Drinks News Market News Shelf Life

4|Retail News|September 2014|www.retailnews.ie

News

Row Over Utilities Surcharge Gathers Pace AN increasing amount of retailers are applying surcharges on utility bill payments. A recent survey from Money Advice & Budgeting Service (MABS), conducted in a small Dublin constituency, found that seven out of nine shops were charging additional fees for electricity and gas meter bills.

Fees ranged from between 20c and 50c per transaction.

Retail News spoke to a MABS spokesperson, who criticised retailers over the surcharge: “We’re concerned that poor people with low incomes, who have meters put in to help manage their energy consumption, are being charged more.”

Many local shops provide payas-you-go bill payment services for utility companies and local authorities.

Retailers deal directly with payment service providers - such as Payzone, PostPoint and PayPoint - who act as middlemen. Kieran O’Neill, Electric Ireland spokesperson, explained: “Electric Ireland has exclusive contracts with retail service providers for the provision of pay-as-you-go meter top ups in retail outlets. Retailers must contract with retail service providers to provide top up services to our mutual customers.”

Retailer representative groups argue that local shops apply surcharges to cover the increased cost of providing these services. In the past, consumers went to Electric Ireland (ESB) shops to pay Electric Ireland bills. Electric Ireland has closed its shops, so retailers

now provide the service. utility costs, rents.

Many of them do so at a Turnover has been loss, according to Frank badly hit. Retailers have Gleeson, Retail Ireland reduced income on their Chairman. top line and static or “The cost of providing increased costs on the that service could be middle line…” anything from 50c to €1,” The MABS he said. “Retailers have to spokesperson told Retail News, “Retailers need to pass on some of that cost to look at the contractual the consumer.” basis of which they RGDATA dispute the entered into these findings of the MABS arrangements and see survey. According to its Tara Buckley, in-house surveys, around RGDATA Director General. what can happen, other than charging poor people 20% of retailers apply more.” surcharges. The retail representative RGDATA has asked payment group has called for a change to the fee services providers to address the issue structure. in the past. Ultimately, though, the “Retailers surcharge because decision to change the fee structure is they have analysed the business in the hands of utility companies. and realised it costs them money to A Payzone spokesperson provide the service,” said Tara Buckley, discouraged retailers from applying RGDATA Director General. “They want to recoup the cost of providing the surcharges: “Over the past year, retailers have seen a significant service. The retailer gets a flat fee per increase in their bank charges and transaction. Fees were set a number this has resulted in some stores of years ago and haven’t increased. choosing to apply a surcharge on low The cost of providing the service has margin services, including pay-as-youchanged in the meantime. Over the go electricity and gas transactions. last number of years, there have been Whilst we understand the pressure hidden payments associated with retailers are under, Payzone does not contactless cards, debit cards, credit recommend the addition of a fee as this cards. How can retailers afford to will ultimately drive consumers to look provide these services, if what they are for alternative locations to top-up and paid by the payment services provider retailers will lose that customer.” does not cover their costs?”

Gleeson concurred: “Non-labour According to Electric Ireland’s related costs have been on the increase: Kieran O’Neill, “Electric Ireland, as one

Retail News|September 2014|www.retailnews.ie|5

News of the energy providers affected by this issue, is strongly opposed to the introduction of surcharges by some retailers and is proactively working with our service providers in addressing the issue to ensure that any such surcharges are discontinued… When Electric Ireland becomes aware of instances of surcharging, we contact the retail service provider in order that they can address this issue directly with the relevant retailer.”

A Bord Gáis spokesperson added: “Bord Gáis Networks strongly opposes the surcharging of pay-asyou-go gas customers…

Gas suppliers pay Payzone for each transaction and Payzone then pays commission to the retail outlet.

Under the terms of the

contract between Bord Gáis Networks and Payzone, surcharges are prohibited. Payzone is contractually obliged to monitor retail outlets to ensure surcharges are not applied. Bord Gáis Networks understands that the commission received by retailers for pay-as-you-go gas transactions is competitive and that the vast majority of retailers do not apply a surcharge on gas payments services.”

Meanwhile, Payzone is “working with the utility companies and retailers to resolve the issue.”

Retailers are not optimistic about an increase in fees.

“Unfortunately, it’s a necessary fee structure that smaller independent retailers have to put in,” said Gleeson. “Some of the bigger multiples

NPP Calls on Business to Join the Evolution

Retail Ireland Chairman, Frank Gleeson.

don’t have to surcharge because they have a broader expense base.

I fully understand why they might feel the need to charge for these services. In many cases, they may be the only shop in town or village that provide the service.

Sadly, the consumer now has to pay for that service.”

MABS is monitoring the situation and plans to undertake another survey in October.

Dunnes Stores in Labour Court Showdown over Workers’ Rights TRADE union Mandate has referred a claim against Dunnes Stores to the Labour Court. The move came after the retailer failed to attend a Labour Relations Commission (LRC) conciliation hearing. Gerry Light, Mandate Assistant General Secretary, told Retail News: “Dunnes refused to go into the LRC, which forced us to refer the matter to the Labour Court.

We wrote to the LRC and gave them a detailed account of the issues. We believe Dunnes Stores has adopted a tactic to stall effective discussion and negotiation.”

In a letter to the Labour Court, Mandate claimed that Dunnes, which employs 10,000 workers in 112 stores across the Republic of Ireland, “shows a blatant disregard for the living standards of ordinary hard working retail employees”.

The trade union’s demands spring out of its Decency for Dunnes Workers Campaign, which includes calls for “banded hour contracts”: a change to the minimum contractual hours an employee works at the store, in accordance with the average amount of hours he or she actually works. “One of the big issues is to allow a Mandate trade union member in Dunnes Stores to have their chosen representative

Gerry Light, Mandate Assistant General Secretary.

accompany them in work related issues,” added Light. “Dunnes doesn’t allow our officials inside the front of the shop.”

Mandate has written to the company, expressing areas of concern.

So far, the company has declined any meetings. “This is business as usual with Dunnes. They’re a law unto themselves. This has been par for the course for the past 20 years. All the competitors now in retail have agreed banded hour contract arrangements.”

Tesco and SuperValu both use banded hour contracts. According to Mandate, this puts Dunnes at an unfair competitive advantage. “Dunnes Stores takes a particular view of the world.

They see it as the world according to Dunnes and proceed accordingly,” said Light.

Patricia Callan, Director at the Small Firms Association, is pictured with Minister of State at the Department of Finance, Simon Harris TD, and Ronnie O’Toole, Programme Manager for the National Payments Plan, viewing a Government cheque that has been consigned to history at the National Museum of Ireland Natural History.

SEPTEMBER 19 is ‘e- Day’, when Government departments, local authorities and other state agencies will stop sending and receiving cheques from business. The National Payments Plan (NPP), with the support of the Department of Finance, has issued a reminder to businesses and public sector bodies to ensure a smooth transition to electronic payments in their financial dealings with each other.

Ronnie O’Toole, Programme Manager for the National Payments Plan, said: “Although Irish businesses are already migrating away from cheques and towards e-payments, we are still one of the most chequeintensive countries in Europe. e-Day will help Ireland continue its progression towards e-payments, and create a quicker, safer and less expensive payments environment.”

In order to assist businesses to meet the e-Day requirements, the NPP has put in place a website www.jointheevolution.ie. Businesses are also advised to contact their own banks if they have additional queries.

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Retailers Dispute Australian Cigarette Data

RETAILERS have disputed the results of an Australian study commissioned by the Cancer Council which claimed that Australia’s move to plain packaging has not affected small retailers.

The Australian Association of Convenience Stores (AACS) CEO, Jeff Rogut described the claims made by health lobbyists as damaging and insulting to those in the industry. Roget told Australia’s Inside Retail that “the additional costs that small retailers in Australia have been forced to absorb as a direct result of plain packaging have seriously impacted their bottom line.

“The cost burdens associated with additional staff training, labour,

product handling errors, increased inventory management procedures and customer frustration have been substantial,” he added.

Roget described as “disappointing” the introduction of plain packaging, which he termed “a destructive measure”, without consultation with industry and with no evidential basis.

“Unsurprisingly, the policy, to date, has backfired,” he noted. “The volumes of legal tobacco sold remain constant and in some cases, as reported in the recently released AACS 2013 State of the Industry Report, actually continued to increase, while the black market trade of tobacco in Australia has escalated to unprecedented levels.”

Another serious impact of plain packaging has been the shift in consumer purchasing habits to cheaper brands and products, something which CSNA CEO, Vincent Jennings highlights in our Retail News Interview (Page 24). In Australia, the sub-value or ‘cheaper’ segment of the market grew by a massive 61.7% over the course of the 12 months to June 2014.

Here in Ireland, Alan O’Kelly, Corporate Affairs Manager at PJ Carroll’s, dismissed the Cancer Council report, noting how, “A limited phone poll that asks less than 2,000 people in one state of one country, who have not given up smoking since the introduction of plain packaging, to admit to breaking the law is just not credible data.”

O’Kelly argued that criminals do not smuggle products that they can’t sell for a profit and official Australian Customs and Border Patrol data shows that the number of illegal cigarettes seized has more than tripled over the past three years. In addition, he noted, research by consultants KPMG has shown that the Australian black market grew by nearly 20% in 2013, reaching a high of 13.9% of the entire tobacco market, and costing the Australian Government $1 billion in lost taxes.

“The data from Australia shows that plain packaging has been counterproductive,” he said. “Put simply, the plain packaging experiment in Australia has failed.”

New Ownership Structure at BWG Group SPAR South Africa is to invest €55m in a joint venture with the BWG management team to acquire the BWG group of companies.

SPAR South Africa is a leading publicly-quoted wholesaler and distributor to over 1,800 independent retailers spread across Southern Africa, with annual sales of around €3.5 billion and a market capitalisation of approximately €1.5 billion.

The new joint venture will be owned 80% by SPAR South Africa and 20% by Leo Crawford, John Clohisey and John O’Donnell. This announcement also secures a further reduction in BWG’s borrowings, following a buyback of exiting banks’ debts. This further reduction in debt comes on top of that achieved as part of a successful refinancing concluded in November 2013, which also saw BWG agree new five-year banking facilities. These facilities have been reaffirmed by BWG’s lenders as part of this transaction with Bank of Ireland and AIB increasing

Pictured are (l-r): John O’Donnell, Group Finance Director, BWG Group; Graham O’Connor, Group CEO, SPAR South Africa; Leo Crawford, Group CEO, BWG Group; and John Clohisey, Group Property Director, BWG Group.

their commitment. The new partnership will have up to €100m to invest in the expansion of BWG’s leading wholesale and convenience retailing operations over the next five years. BWG will continue to be led by Group CEO, Leo Crawford, and the existing management team and there will be no change to the structure or composition of the existing businesses.

“This is a very positive and exciting development for BWG,” Crawford noted.

“In SPAR South Africa, we have secured a major international retail player as a strategic partner and a long-term investor in our business. We have known SPAR South Africa for many years and they are a great fit for BWG. We look forward to working with their team to accelerate the expansion of our operations and the growth of our wholesale and retail businesses in Ireland and the South West of England.”

Commenting on behalf of

SPAR South Africa, Graham O’Connor, Group CEO said: “BWG is an excellent strategic fit for SPAR South Africa. Apart from the significant additional financial strength we will bring to the business, the deal will bolster BWG’s purchasing power, deepen our expertise in store formats and design and facilitate knowledge sharing across all aspects of the convenience food retail sector, including logistics, warehousing and distribution.”

Commenting on behalf of the bank group, a spokesperson for Bank of Ireland acting as Agent said: “We welcome the joint venture between SPAR South Africa and the BWG management team and we look forward to continuing to support the business as it embarks on a growth strategy across Ireland and the UK.” BWG was advised by Investec Corporate Finance (Ireland) and McCann Fitzgerald.

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C&C Confirms Acquisition of Gleeson Group Finches and Tipperary Water.

The past year has seen a strategic consolidation of C&C’s existing Republic of Ireland business with the Gleeson Group to create a single Irish entity. As part of the integration of the two businesses, the Bulmers’ Marketing & Sales team has been amalgamated with the Gleeson C&C Gleeson Commercial Director, Stephen Meleady.

Wholesale & Distribution team C&C Group plc has confirmed the to produce a streamlined and heavyacquisition and integration into its hitting Irish presence in the Irish business of the Gleeson Group, one of market.

Ireland’s leading beverage wholesalers, With a staff of some 900 people creating a new, formidable force in the in eight locations around Ireland, drinks sector in Ireland: C&C Gleeson.

The newly enlarged entity combines C&C Gleeson will maintain its strong commitment to Tipperary, its historic strong distribution, wholesale and home and plans are already in place for marketing capabilities, bolstered the construction of a craft brewery at by a dedicated sales force, offering the Bulmers plant in Clonmel, which unrivalled nationwide coverage to will enhance the company’s developing customers on the island of Ireland. multi-beverage capabilities.

C&C’s portfolio, which includes “We believe, with the completed flagship brand Bulmers, in addition acquisition and integration of the to Tennent’s, AB INBev brands and Gleeson Group, that we are now the company’s new Irish beer offering, positioned to be Ireland’s number one Clonmel 1650, will be strengthened by wholesaler and the drinks supplier of leading wine and soft drinks brands choice to the country’s licensed and offsuch as Santa Rita, Laurent Perrier,

trade,” noted C&C Gleeson Commercial Director, Stephen Meleady. “With our combined infrastructure now in place, our geographical footprint on the island of Ireland will be unmatched, with access to over 7,000 on-trade premises from a potential market of almost 10,000 outlets. Acquiring the country’s leading drinks distribution and wholesale businesses was the next logical step for C&C, as we continue the growth of the business through a combination of organic expansion and strategic acquisitions.”

Brian Beattie, C&C Gleeson Marketing Director, added; “With the acquisition of the Gleeson Group, C&C has evolved into a multi-brand producer and distributor, equipping us with the ability to deliver growth in a market that has seen an overall and much publicised decline in the last six years.

It is an exciting time for us at C&C and there is a new sense of optimism within the group, as we look towards the future as a more rounded and ultimately more compelling operation. We have moved from a single brand FMCG company to a multi-beverage organisation, which is good news for the business and great news for our customers.

“At the centre of our strategic plans for growth is the belief that by staying true to our Irish roots and by creating additional value for our customers, we will be able to realise this objective.

Our Irish heritage is integral to the business.”

Repak Exceeds EU targets for Packaging Recycling THE 2012 National Waste Report from the Environmental Protection Agency (EPA) shows that Repak has exceeded all national and EU targets for packaging recycling.

The EPA recently published the 2012 National Waste Report, which provides valuable information on trends in waste generation and management and shows the impact of an evolving waste policy landscape in Ireland, and changing household behaviours in relation to waste generation.

According to the EPA’s newly published National Waste Report for 2012:

• Repak was responsible for the recovery of 84% of the total packaging waste generated in 2012.

In fact, it exceeded all European targets by 27%; • In relation to packaging waste, Ireland’s recovery rate was 87% in 2012, which well exceeds the Packaging Directive target of 60%; • The total amount of packaging waste generated (809,500 tonnes in 2012) has not changed significantly since 2011 (863,597 tonnes) but there was a decrease in the quantity landfilled: from

181,317 tonnes in 2011 to 108,764 tonnes in 2012. This decrease is a direct consequence of the diversion of residual waste from landfill to energy recovery.

“The EPA report helps to showcase the success of Repak and its members in exceeding packaging recycling targets,” said Seamus Clancy, Chief Executive Officer, Repak.

“We believe that this report will now move Ireland up to second place in Europe for packaging recycling.

Thanks to our members and our recovery operators’ support, Repak continues to punch well above its weight

in meeting and exceeding every target set both locally, nationally and by the EU. We will endeavour to build upon the Irish public’s awareness of best packaging recycling practices to ensure our continued success.”

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Summer Boost for Dunnes Stores Total Take Home Grocery - Ireland Consumer Spend Total Grocers Total Multiples Tesco Dunnes Total SuperValu SuperValu Superquinn Total Discounters Aldi Lidl Other Outlets**

12 Weeks to 21 Jul 2013 %*

12 Weeks to 20 Jul 2014 %*

change** %

100.0% 88.3% 27.5% 20.9% 25.1% 19.6% 5.5% 14.8% 7.1% 7.7% 11.7%

100.0% 88.2% 25.6% 21.2% 24.7% 16.7% 8.3% 8.4% 11.8%

0.9 0.8 -6.2 2.6 -0.8 14.0 17.1 11.1 1.5

*= Percentage Share of Total Grocers **= Includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers And Cross Border shops

THE latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending July 20, show a strong performance for Dunnes Stores as it posts a sales increase of 2.6% to hold its 21.2% share of the market.

“Despite declining numbers of shoppers coming through its doors over the past year, Dunnes has managed to increase footfall levels

within the past two months, largely by drawing in customers with branded promotions,” explained David Berry, Commercial Director at Kantar Worldpanel. “Branded sales have grown in value terms by 5% this period, thanks to well publicised ‘round euro’ promotional offers.

Traditionally, branded products have been a core strength for Dunnes, and it has used their appeal to draw back

Consumer Confidence on the Rise CONSUMERS are optimistic about the economy going forward and remain in positive territory for the second wave in a row.

However, the gap between Dubliners and these residing outside (especially other urban areas) has increased, with Dubliners having a positive upward trajectory, according to the latest Behaviour & Attitudes Consumer Confidence Tracker.

Current consumer sentiment has finally left negative territory for the first time since 2006.

For the second consecutive wave, Irish consumers are positive about the economy looking forward: perhaps an indication of stabilisation. Dubliners’ positivity continues its upwards trajectory, while positivity gains outside Dublin have halted, resulting in a greater gap vs the capital.

The Tracker revealed that consumer spending is expected to grow by 1.5% in 2014 and 1.9% in 2015. Unemployment is expected to decrease to 9.6% and 8.6% in 2015 and 2016 respectively, while GDP is expected to grow by 3.5% and 3% in 2014 and 2015 respectively.

However, consumers remain quite cautious, just one in 10 respondents expect to spend more throughout the oncoming year.

In addition, the average amount of disposable income remains half of the Celtic Tiger peak, although the decline appears to have abated. Perception of personal asset value, has however increased dramatically in the latest survey, largely driven by those living in Dublin. Overall, a degree of stability is emerging.

customers.”

Meanwhile, Lidl and Aldi are both continuing their impressive growth streaks. Both Aldi and Lidl achieved record market shares this period, with Lidl’s share now standing at 8.4%, while Aldi boasts an 8.3% share.

“On the flip-side to Dunnes’ branded success, SuperValu has seen a strong performance among its own brand products,” Berry continued. “While the shift to cheaper own label goods has led to a slight drop in value sales, SuperValu has posted a record number of shoppers this period. Some 73.6% of Irish households shopped in SuperValu over the past 12 weeks – up an impressive 94,000 customers compared with last year.”

Tesco’s performance lags behind the market, mainly as a result of decreased customer spend in store – the average shopping trip fell in value by €1.60 as fewer items were placed in baskets.

While overall grocery market growth has remained subdued at just less than 1%, there are signs of a boost in Dublin – the driving region of the Irish economic recovery – where the value of grocery sales has increased by 5.4%.

BIM’s Green Resource Efficiency Seminars in October BIM, in conjunction with Green Business and SEAI, are hosting a series of free half-day seminars to assist seafood retailers to explore smart and inexpensive methods of reducing energy, water and transport costs. These events are guaranteed to be a worthwhile investment of management and staff time.

BIM’s Green Seafood Business Programme has already assisted a number of seafood processors to run their business in a more sustainable and efficient manner, resulting in significant savings on energy, diesel and water costs.

These seminars will be tailored to meet the needs of seafood retailers and will include key insights from industry experts, as well as a retail industry case study and talks from BIM, SEAI, Green Business, Musgrave and Ecofleet.

The seminar dates and venues are: Dublin: Tuesday, October 14, 2014, Radisson Blu Hotel, Dublin Airport Cork: Thursday, October 16, 2014, Park Inn, Cork International Airport This is a free event but advance booking is required as places are limited. For further information and to book, contact Lorraine O’Byrne in BIM on (01) 2144185 or email obyrne@bim.ie. For further details and the seminar agenda, please visit www.bim.ie

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Newspaper Readership Remains Strong: JNRS THE latest Joint National Readership Survey results reveal that four out of five adults in Ireland read newspapers regularly. The JNRS, for the period from July 2013 to June 2014, reveals that almost two million people read a printed daily newspaper yesterday, while more than two million adults read a Sunday paper within the past week.

74% of adults in Ireland accessed the internet for personal use in the past week, less than the 84% of adults who read a newspaper in the same time period.

However, online readership of newspapers has increased by 26% year-on-year and three quarters of online newspaper readers also read newspapers in print.

Amongst the big winners in the latest JNRS were Independent News & Media, whose titles reached a combined audience of 1,918,000 readers every week

across its print and digital offerings.

The Irish Independent continues to hold the unique and undisputed position as Ireland’s best read quality daily newspaper, reaching 691,000 readers nationwide, while The Sunday Independent remains Ireland’s most widely read newspaper, topping both Sunday and daily markets with increased readership now reaching 992,000 readers weekly. The strength in readership is highlighted by the fact that over half

a million (548,000) Irish adults read no other Sunday newspaper. Meanwhile, The Herald continues to perform well in the Dublin daily market, reaching 262,000 readers daily, with an almost equal divide between male and female readers, (46% v 54%).

“INM titles have continued to hold their place as the island’s most read titles. We have refocused as a digital company with print assets but our core principle of trusted journalism remains to the fore,” stated

Aldi Wins 35 Awards at Food Oscars ALDI Stores (Ireland) has won more awards than any other retailer in Ireland at the prestigious international 2014 Great Taste Awards in London, picking up 35 awards. Proving Aldi’s great prices also provide great quality, Aldi’s product range has now won a total of 177 Great Taste Awards. Aldi is now the most awarded Irish retailer in the last five years across the Great Taste Awards, Blas na hÉireann National Irish Food Awards and Irish Quality Food and Drink Awards.

Many of Aldi’s Great Taste Award winning products are sourced from industry-leading Irish suppliers and producers. Winning Irish sourced products include Aldi’s O’Shea’s Traditional Irish Pale Ale, produced

by The Carlow Brewing Company, which received two gold stars, Aldi’s Specially Selected Single Origin Ethiopian Coffee, produced by Bewley’s, which also received two gold stars, and Aldi’s Specially Selected Irish Angus Fillet Steaks, produced by

ABP Cahir, which received a gold star.

Commenting on the success, Aldi Ireland’s Group Buying Director, Rob Farrell said, “The Great Taste Awards are the definitive independent accreditation of quality and offer absolute confidence to the customer that the product they are buying comes with a seal of approval purely based upon its fantastic taste. We are delighted that so many of our Irish suppliers have once again picked up awards. We are continuously introducing new and exciting Irish sourced products and engaging more and more Irish suppliers.”

Stephen Rae, INM Editor-inChief.

The Irish Times, IrishTimes.com and the title’s apps have a total average daily readership of 388,000, according to the survey. The print edition of the newspaper has a readership of 301,000, while 136,000 Irish adults consume Irish Times content online on an average day. There is a crossover between these two groups, with some readers consuming content in both print and digital formats.

The survey, conducted by research company Millward Brown on behalf of members of the National Newspapers of Ireland, revealed, however, that the majority of titles have seen a decline in the readership of their print editions compared to the previous review period, with total readership levels being maintained by an increase in online readers across almost all titles.

Biggest FMCG Slowdown in UK Since WWII THE UK is experiencing the first significant decline in the sales (value and volume) of FMCG goods seen in Britain’s Post-War grocery market history, according to market and shopper intelligence firm, IRI. In the first half of 2014, sales of FCMG products across all of the UK’s major supermarkets were down in volume by -3.2% and value by -1.2%. This is lower than the first six-month period of 2013 and almost certainly unprecedented, despite recent declines in food price inflation.

The retailers’ price war on hundreds of product lines, aimed at combating the growth of discounters, is not helping, with IRI’s average shopping basket price falling by just 0.5%, equating to just 54p per week. Indeed, IRI estimates that trading down cost the grocery industry over £800 million in 2013 and expects this to be significantly more by the end of 2014. The full report is available from www.iriworldwide.co.uk.

10|Retail News|September 2014|www.retailnews.ie

News

Something Brewing at Guinness GUINNESS have announced the release of two brand new beers – Guinness Dublin Porter and Guinness West Indies Porter. Inspired by authentic recipes, whose origins lie in the historic Guinness’ brewers’ diaries from the late 1700s and early 1800s, the new beers will be available in selected pubs and retailers from October 1.

The two new porters are the first releases from a new brewing project at the St James’s Gate brewery in Dublin.

‘The Brewers Project’ gives Guinness’ enterprising brewers license to explore new recipes, reinterpret old ones and collaborate freely to bring exciting beers to life.

With origins in a 1796 entry in Guinness’ brewers’ diaries, Guinness Dublin Porter was inspired by the golden age of porter in the 1800s; a time when porter was the working man’s beer. Guinness West Indies Porter is based on an 1801 diary entry for the first Guinness purposely brewed to maintain its freshness from one end of the world to another. To guarantee the best quality upon arrival, Guinness brewers made a porter with more hops and a higher gravity. With their distinctive tastes, these new porters will offer beer lovers in Ireland and the UK something different and a fresh take on what’s been enjoyed for centuries.

25 Years of Winning Streak A NEW season of Europe’s longest running TV gameshow, the National Lottery’s Winning Streak Show, returned to RTÉ ONE on Saturday, August 30, presented by popular TV gameshow hosts, Sinead Kennedy and Marty TV gameshow hosts Marty Whelan, Sinead Whelan.

Kennedy and National Lottery CEO, Dermot Griffin, This season launch the new season of Winning Streak Scratch marks the 25th Card and TV gameshow. year of Winning Streak and hundreds of thousands of people will tune in every Saturday evening to see what lucky Winning Streak contestants from all over the country will win. Players also have the opportunity to win €1m on the Grand Prize Wheel.

‘We’re sure players all over Ireland will be delighted to see the return of one of the most popular TV gameshows of all time,” said Dermot Griffin, CEO, National Lottery. “This season marks 25 years of Winning Streak and this year, our prizes are bigger and better than ever. We’re certainly hoping to see a winner of the top prize of €1,000,000 on the Winning Streak Wheel.”

Winning Streak scratch cards are now available in National Lottery agent stores nationwide, priced at €3. The top instant prize to be won on the scratch card is €50,000. To enter for the Winning Streak TV Gameshow, players must reveal 3 stars on the Scratch Card and submit it to the National Lottery in a special 3 star envelope, available from all National Lottery retail sales agents.

In addition, the new Winning Streak scratch card offers players the chance to win a car worth €30,000 or a cash prize up to €20,000. To enter, players must collect the letters C-A-R from the stub portion of the Winning Streak scratch card. Each week, a lucky winner is drawn to appear on the show and play Car or Cash for the chance to win a car worth €30,000 or a cash prize up to €20,000.

Costcutter Conference Takes Place THE Costcutter Annual Conference took place recently in the Heritage Hotel, Killenard, Co. Laois, where retailers came together to hear Barry Group MD, Jim Barry, discuss the state of Ireland’s retail grocery sector.

Describing the market as difficult and challenging, Barry noted how the Dublin market seems to be recovering, along with other cities, but business remains tough in rural areas. However, he acknowledged that consumer confidence is on the up and unemployment is Barry Group MD, Jim Barry, pictured at the Costcutter Annual at its lowest level in Conference. years. Disposable income, however, remains a challenge, with job security, debt and utilities still consumers’ main concerns.

He pointed out how the Barry Group has already seen the benefit of its investment in its retail brands and its constant evaluation of its service to customers, with the opening of seven new Costcutter stores and 10 new Carry Out stores already on board in 2014, with the forecast for more to come.

As part of the Conference, more than 300 retailers attended the Barry Group Trade Show, and the event also saw the Costcutter of the Year Awards presented, with Doherty’s from Carndonagh, Co. Donegal, named Costcutter Supermarket of the Year (full story in next month’s Retail News).

Retail News|September 2014|www.retailnews.ie|11

Tax & Finance

The Importance and Uses of Cash-flow Statements and Projections FOR many years, cash-flow statements and projections were regarded as something that were prepared for third parties, such as banks, when applying for a loan or overdraft.

However, in recent times the trend has changed and more and more businesses realise the value in producing cash-flow statements and projections for their own internal use to effectively manage their business.

in actually assisting the running of their business.

However, this view has changed dramatically in recent years, with many retailers, both small and large, now producing very detailed cash-flow statements on a weekly basis, in addition to say a yearly cash-flow

statement.

There are many benefits to producing a detailed weekly cash-flow statement, as it allows retailers to plan for large payments falling due on a weekly basis, such as wages and supplier payments.

Yearly Cash-Flow Statements & Projections

Yearly cash-flow statements and projections are still recommended and are essential for the successful running of any business. This is particularly The Benefits of Weekly true in the retail sector, where Cash-Flow Statements many retailers may have to plan Retailers have also realised the for large changes in their weekly benefits in accurate cash-flow turnover, depending on the time statements and projections to of the year. They may also have assist them in managing their to budget for capital expenditure business. Traditionally, cashat certain times of the year. flow statements and projections Detailed cash-flow statewere often for longer periods of ments will also allow retailers to Director: Martin Hyland, time, such as one to five years, assess their repayment capacity, and many would have questioned ACCA, AITI Chartered Tax Adviser, both in terms of repaying exist0314-TAI01 Retail News PressAd-v2_Layout 1 30/03/2014 15:47 Page 1 Tax Accounting Ireland. how realistic or useful theyHP were ing loans or any new loans that

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12|Retail News|September 2014|www.retailnews.ie

Industry News GALA CONTINUES DISNEY PARTNERSHIP GALA has continued its partnership with Disney for the launch of Planes 2: Fire & Rescue, the family film of the summer. Gala hosted six special preview screenings of the movie in Galway, Cork, Laois, Limerick, Leitrim, and Wexford, offering families across Ireland a chance to be among the first to see the film before it went live nationwide.

Some lucky fans of the Gala Facebook page, www.facebook. com/galaretail, won family passes to their preferred location, in additional to local radio stations, many of which also had family ticket giveaways for the pre-screenings, which expanded Gala’s community connection. Pictured are (l-r): Ferell Barron, film producer; Gary Desmond, CEO, Gala Retail Services; Bobs Gannaway, film director.

Nicky Signs with Jack & Jill Robert Roberts Record NICKY, the premium household tissue brand, is celebrating its 10th birthday in the Irish market this year and to mark the occasion, Nicky has partnered with the Jack & Jill Children’s Foundation. Nicky premium products now carry the Jack & Jill logo on-pack and each pack purchased helps raise funds to provide home nursing care for the 300 Jack & Jill children who have suffered from brain damage and are affected by severe intellectual and physical developmental delay, enabling their families to purchase home respite care. The Nicky paper range is available widely in supermarket and convenience stores across Ireland. Masterchef presenter and renowned restaurateur, ‘Nicky’ Munier is pictured (centre), with Brian Clinton, Country Sales Manager, Sofidel Group; and Sinead Moran, Senior Liaison Nurse Manager, The Jack & Jill Foundation, at the launch of the partnership.

70 Years Of Caffrey’s CAFFREY’S are celebrating 70 years of manufacturing in Ireland. The company was founded by the late Thomas Caffrey, affectionately known as “Ireland’s Willy Wonka”, who invented the famous Caffrey’s Snowball. The company produces 100 different confectionery products, including Snowballs, Tea Cakes, Mallows, as well as three brands of boxed chocolates, including Caffrey’s, Blarney, and Irish Gold, and a large range of basket Easter Eggs.

Haul at Great Taste Awards A €350,000 investment in ‘Gaynor’, a state-of-the-art Italian Brambatti roaster, last year is paying dividends for one of Ireland’s oldest coffee and tea companies, Robert Roberts, who lifted no fewer than 17 golds at the annual Great Taste Awards for 13 of its coffee and tea blends. Included in the winning products are four two-star gold accolades which classes products as “faultless” - for Robert Roberts’ Colombia Coffee, Fairtrade Luxury Tea, Vivaldi Espresso and Mocha Java. An additional nine products were also awarded a one-star gold, “close to perfect”, including Robert Roberts Rainforest Alliance Organic Tea, Robert Roberts Costa Rica Coffee, and the company’s Decaf Black Tea. Pictured are Roisin O’Shea, Marketing Manager, Roberts Roberts, and Garath Scully, Master Coffee Roaster, Robert Roberts.

Tesco Extra Opens in Dundalk TESCO Ireland has created 49 new jobs at its Tesco Extra Dundalk store, which was officially opened by Minister of State for Business and Employment at the Department of Jobs, Enterprise and Innovation, Ged Nash TD. The new store, located at the site of the old Dundalk shopping centre which originally opened in 1974, took 14 months to rebuild and is 55,300 square feet.

The store employs 174 people in total, 90% of whom are from the local area, with Tesco now employing almost 500 in Co. Louth and over 15,000 people nationally. Pictured at the official opening of Tesco Extra Dundalk are (l-r): Geoff Byrne, Chief Operating Officer, Tesco Ireland; Teresa McGuinness; Ged Nash TD, Minister for Business and Employment at the Department of Jobs, Enterprise and Innovation; Mary O’Donnell; and Brian Farrell, store manager, Tesco Extra Dundalk.

DE-BRANDING COULD BE A BIGGER PROBLEM THAN IT FIRST APPEARS.

Proposed plain packaging for tobacco has serious implications for many brands in many other sectors. It strikes at the heart of brands, of fair practice and of consumer choice.

LET’S LOOK BEFORE WE LEAP.

14|Retail News|September 2014|www.retailnews.ie

Industry News SUPERVALU SCORES AT GREAT TASTE AWARDS SUPERVALU is celebrating, having won a remarkable 29 accolades at the international Great Taste Awards.

Great Taste, organised by the Guild of Fine Food, is the world’s largest blind-tasted food awards, judged by an expert panel of chefs, food critics and famers, and widely acknowledged to be the most respected food accreditation scheme for artisan and specialty food producers. The success is attributed to the performance of the celebrated SuperValu Signature Tastes Range – an affordable range of quality products developed to suit Irish tastes – which secured 16 of the highly coveted awards.

Among the 29 SuperValu products which secured an award were the delicious Signature Tastes Irish

Hereford Striploin Steak from Kepak Ltd; Signature Tastes Red Onion Relish, produced by the Leonard family in West Cork; Signature Tastes Lamb Tagine, produced by Ballymaguire Foods; and Signature Tastes Strawberry Yogurt (pictured), produced

by Killowen in Co. Wexford.

‘To be recognised and bring home 29 awards at the world’s most respected food accreditation scheme is a tremendous achievement,” noted Martin Kelleher, Managing Director, SuperValu. “The performance underlines the quality and taste credentials of SuperValu’s food offer and reflects our commitment to working with great Irish producers to deliver the very best taste to our shoppers.”

Kerry Celebrates Food with New Book Launch A NEW Kerry Food Producer Book called ‘The Kerry Food Story’ was launched at the Institute of Technology, Tralee, Co. Kerry by TJ O’Connor, Head of Section, Hotel, Culinary and Tourism Department, and Tomás Hayes, Head of Local Enterprise, Kerry County Council. The 68-page book and directory, which will be given out free of charge, contains a listing of over 150 local Kerry food and drink producers and includes specially-created recipes by eight of the top chefs in Kerry using local produce. All of the chefs have studied at IT Tralee. The aim of the book is to remind chefs, distributors, hotels, restaurants, retailers and local customers of the wealth of home-grown and home-produced produce that Kerry has to offer and to give them a direct way of sourcing it.

Gala Goes Up The Hill for Charity

GALA is delighted to sponsor a new charity initiative with children’s charity, the Jack & Jill Foundation, titled ‘Gala Up the Hill for Jack & Jill’.

The charity is facing a shortfall of €200,000 and is calling on the public to get their walking shoes on and climb a hill, big or small, in order to raise much needed funds for Jack & Jill’s home nursing care.

As part of its plan to increase brand awareness nationwide, Gala pledged its support to the charity in supporting them in their fundraising efforts. Those interested can get involved by registering online at www.jackandjill.ie and then dropping into one of the 200 Gala stores nationwide to pick up the registration pack. Pictured at the launch of Gala Up the Hill for Jack & Jill are: Gary Desmond CEO, Gala; Jonathan Irwin, CEO and Founder of Jack and Jill; together with ‘Jack and Jill’.

Artisan Food Recognised At Food School PICTURED at the fourth annual Food Summer School, led by the TASTE Council of Ireland in association with Bord Bia, at Brooklodge Hotel, Co. Wicklow, are: Evan Doyle, TASTE Council, Brooklodge Hotel; Minister of State at the Department of Agriculture, Food and the Marine, Tom Hayes TD; John McKenna, TASTE Council, McKenna’s Guides; and Kevin Sheridan, TASTE Council Chairman, Sheridans Cheesemongers. The day-long symposium, entitled ‘The Future is Food,’ brought together key stakeholders from the Irish artisan and mainstream food industry, media and academic institutions, to discuss the issues concerning the sector, and its contribution to local and national economy and social fabric. Foremost among the issues facing artisans and specialty food producers is the challenge of differentiating themselves when the traditional language and imagery of the artisan has been absorbed by the mainstream.

16|Retail News|September 2014|www.retailnews.ie

Industry News TESCO SUPPORTS FOOD REDISTRIBUTION CENTRE TESCO Ireland has agreed a partnership with Bia Food Initiative (BiaFi), to support the development of Ireland’s first large-scale food redistribution centre, based in Little Island, Co. Cork. Tesco, which already has a national partnership with FoodCloud to redistribute all surplus food from stores, is the first retailer in Ireland to partner with BiaFi. Tesco is providing the charity with valuable operational expertise and financial support to ensure BiaFi is set up using first-class distribution systems and practices to operate safely and efficiently. BiaFi facilitates the

transfer of large-scale surplus food from food-related businesses to local charities to help tackle food poverty.

It aims to create a national surplus food redistribution network in Ireland, giving local charities access to food to distribute to the people who need it most. BiaFi expects to redistribute up to 3,000 tonnes of surplus food annually to charities in the greater Munster region. Pictured are (l-r): Tesco Retail Support Director, Ciaran Foley; Regional Vice President of St Vincent de Paul, Brendan Dempsey; and Director of the Bia Food Initiative, Eoin McCuirc.

Scally’s SuperValu Launches Gluten-Free Bakery

Bewley’s Wins 12 Gold Stars

SCALLY’S SuperValu in Clonakilty, West Cork, has become the first supermarket in Ireland to launch a designated in-store glutenfree bakery and food production facility. The new facility, with an investment of €500,000, will create five new jobs at the store. The ‘Clonakilty Gluten Free Cuisine’ range, which consists of a selection of almost 30 gluten-free products certified for coeliacs, will be available at Scally’s SuperValu Clonakilty and Scally’s SuperValu Blackrock in Cork city, with future expansion plans expected. As this innovative range is prepared in a separate bakery and kitchen, coeliacs can be assured that the range is 100% gluten-free, with all products independently tested and certified by Alpha Analytics.

“The decision to develop this range was made after market research highlighted the lack of choice for coeliacs and the high cost of glutenfree products; research showed that a coeliac’s basket of goods is 87% more expensive than a non-coeliac basket,” noted store owner Eugene Scally. “We wanted to offer customers a diverse gluten-free range that was keenly priced and of exceptional quality. Our customers’ feedback has been instrumental in developing the range and the response from shoppers has been extremely positive.”

Pictured at the launch are model Rosanna Davison, with Mary Twohig, Coeliac Society of Ireland, and store owner Eugene Scally.

BEWLEY’S has been awarded 12 Gold Stars at the Great Taste Awards 2014. Bewley’s Irish Breakfast Tea, Dublin Morning Tea, Irish Afternoon Tea, and Bewley’s Kenya and Espresso Fresh Ground Coffee are just some of the Bewley’s products that were recognised by the Guild for their exceptional quality and taste. “We’re delighted that for the eighth year in a row, Bewley’s teas and coffees have been recognised by the Guild of Fine Food for their exceptional quality and taste,” explained Mark Saunders, Bewley’s Brand Director, pictured with Miss Ireland, Jessica Hayes.

Glanbia’s Good Performance For First Six Months GLANBIA plc has announces its results for the six months, ended July 5, 2014. The Group delivered a good performance for the first half of the year. On a constant currency basis, total group revenue grew 10.7%, total group EBITA increased by 10.3% and adjusted earnings per share grew 11.5%. On a reported basis, total group revenue increased 8.1%, total group EBITA increased by 6% and adjusted earnings per share grew by 6.8%. “Glanbia had a good first half in 2014, resulting in a constant currency increase of 11.5% in adjusted earnings per share. Global Performance Nutrition was the key contributor, delivering strong branded revenue growth, through effective execution in core channels and continued international growth. Global Ingredients delivered a satisfactory first half in the context of milk procurement issues in Idaho and unfavourable whey pricing dynamics. Dairy Ireland performed in line with expectation, albeit behind the prior year, while Joint Ventures & Associates was also in line with expectation,” noted Siobhán Talbot, Group Managing Director, pictured with Mark Garvey, Finance Director.

18|Retail News|September 2014|www.retailnews.ie

Special Report

New Survey Gets to the Heart of Irish Shopping Habits New research from Retail News, in association with Retail Ireland, is required reading for Irish retailers and brand owners.

NEW research from Retail News, in next 12 months, with that figure rising to 52% for grocery shoppers. Female grocery association with Retail Ireland, reveals that shoppers are the most likely (55%), with shopping around is very much the norm 18-24 years (64%) and 35-44 year olds (63%) when it comes to grocery shopping, while price and value remain key concerns for also most likely to shop around. It comes as consumers. no surprise that older generations are more fixed in their behaviour, with 42% of 45-54 “These findings will be of interest to year olds and 36% of 65+ likely to shop grocery retailers who have been at the very around more next year. Income and working sharp end of this recession,” stresses Retail News Editorial Director, Kathleen Belton. status is clearly a factor here with students “Competition remains very intense in the and unemployed respondents most likely to sector and there is no sign that this will ease. shop around.

“Shopping around is par for the course Even though shoppers are more optimistic these days, and from this research we as the economy improves, they remain very can see that it is only going to increase,” careful with their money. Price, value and comments Stephen Lynam, Director, Retail special offers remain absolutely vital if a Ireland. “Over half of shoppers say they will retailer is to survive”.

Stephen Lynam, increase the practice. We have seen from The Shopper Attitude Survey, carried Director, Retail Ireland other sources that typically grocery shoppers out by Millward Brown on behalf of Retail News and Retail Ireland, revealed that these days go to about four different supermarkets every month, compared to one or two during almost half of all adults (47%) will shop around more in the

Retail News|September 2014|www.retailnews.ie|19

Special Report Thinking about your grocery shopping and shopping around in the next 12 months, do you think you will...

Shopping around in the next 12 months. Base: All Grocery Shopper, Republic of Ireland (n=607).

the boom. Competition is only going to get fiercer.”

The savvy shopper is still a feature, with 71% or respondents claiming they actively seek out cheaper ways of living.

The Power of Price When it comes to grocery shopping, price remains

key (38%) as the reason for choosing a product – this rises to 40% when it comes to grocery shoppers. Value for money is also hugely important to consumers (25%), as is product quality (17% with all shoppers and 18% with grocery shoppers).

However, when all factors are considered, we see

Irish made (40/42%) a more salient feature for people and grocery shoppers. Brand reliability is also is a factor, with 29% claiming it is important to them when choosing a product.

“Highlighting how price-sensitive Irish grocery shoppers are, the survey shows that ‘price’ and

Thinking about what is important to you when choosing a product for your groceryshopping, which is most important to you?

What’s Important to Shoppers When Making aPurchase When Grocery Shopping: First Mentions.

Base: All Grocery Shopper, Republic of Ireland (n=607).

‘value for money’, with a combined share of 63% of first mentions, are king,” Stephen Lynam explains.

“This is hardly surprising, given the drop in income that consumers suffered over the last five years. The grocery sector has responded to this: the price of food and non-alcoholic beverages fell by over 6% in the 2008-2012 period and has been stable since.”

The continued quest for cheaper goods “poses huge difficulties for grocery retailers”, according to the Retail Ireland Director, “as the price of everything from legal and accountancy services to rates and water charges has gone up and up. Margins have been squeezed.”

Lynam also points out that while being Irish made is of primary importance to only 8% of grocery shoppers, 42% of shoppers say it has some influence on their spending decisions.

Brands do not, it seems, figure very highly in the minds of Irish shoppers, however. Only 2% give brands a first mention when it comes to choosing a grocery product and less than a third give them any mention at all. “This might come as a disappointment to many brand owners, though the fact that 61% say the products they buy are “of good quality” means there is still room for well-made and trustworthy products in the shopping baskets of Ireland,” Lynam explains.

Big Ticket Buyers?

Indeed, 40% of the Irish population have held off with a big ticket purchase – higher among grocery shoppers at 45%. Those aged between 25 and 34 (49%) and over 55 are less likely to have held off, however, suggesting that mortgages and other financial commitments may have impacted the other age groups’ willingness to spend here.

“This shows that a

20|Retail News|September 2014|www.retailnews.ie

Special Report Thinking about what is important to you when choosing a product for your groceryshopping, which is most important to you?

What’s Important to Shoppers When Making a Purchase When Grocery Shopping: Total Mentions.

Base: All Grocery Shopper, Republic of Ireland (n=607).

sizeable chunk of people, just short of a majority, have deferred ‘big ticket items’ as the recession dragged on,” Lynam notes.

“The implications for the retail sector of this are huge, and retail sales data shows it has a knock-on effect

on spending on smaller items too. All the evidence suggests that if a shopper has decided not to buy that new car or new sofa, they will probably be less likely to splash out on their weekly shop too.”

The floodgates of

spending are unlikely to open in the next 12 months, according to Brendan Beere, Client Director, at Millward Brown, with only 8% of respondents “very likely” to make a big spend purchase that they may not have considered in the last two

Which of the following do you use when ordering or purchasing your grocery shopping nowadays?

What consumers use when ordering or purchasing grocery shopping. Base: All Grocery Shopper, Republic of Ireland (n=607).

years, with a further 19% “fairly likely” to do so.

While this is modest growth, Lynam nonetheless feels that it is positive that “over a quarter say that they will make a big purchase that they have hitherto deferred. Retail sales data so far this year shows a marked increase in the sales of cars and furniture, for example,” he notes. “This is good news for the economy, and will have a knock-on effect on sectors like grocery, with more money circulating in the domestic economy - a rising tide lifts all boats, and all that.”

The Online Agenda Online shopping behaviour will increase for about 20% of the population in the next 12 months – unsurprisingly, younger consumers will be the most likely to grow their online spend.

“These results show that bricks and mortar remains important, despite all the hype about online,” stresses Stephen Lynam. “Data from the CSO’s Information Society survey in 2013 suggests that only 4% of consumers purchase grocery products online, compared to 30% who booked their holiday online and 20% who purchased clothing. While savvy grocery retailers know that online grocery sales will surely grow, they will know it is a slow burner.”

More recent innovations, such as grocery apps and QR codes have a low penetration of usage for information.

Interestingly, social media sites also have low usage levels for information on grocery shopping, with the store website itself the most important information source for consumers (16%).

That said – about 30% of shoppers use at least one of these.

“Nearly three quarters of grocery shoppers still don’t use apps or social media when planning their food shopping. On the face of it, this is a remarkable figure,” admits Lynam, “though

Retail News|September 2014|www.retailnews.ie|21

Special Report Online and Digital Behaviour in Grocery Shopping

Online and Digital Behaviour in Grocery Shopping. Base: All Grocery Shopper, Republic of Ireland (n=607).

retailers should ignore these phenomena at their peril. The results highlight again how far online has to go in this country in terms of influencing grocery shopping trends.”

He points out that Retail Ireland’s own research from a couple of years ago showed that barriers to online trading, such as start-up costs and the high costs of delivery in this country

represented real barriers to online trading and grocery retailers trying to establish online selling will need to grapple with these problems.

The CSO estimates that 46% of consumers purchased something online last year, up from 36% in 2010. “It is noteworthy that more purchases were made from Irish online retailers than from retailers based abroad,

which shows that retailers who are known and trusted

by Irish consumers are still in the running to win their fair share of the online spend,” Lynam stressed.

The All Pervasive Loyalty Card When shopping, the loyalty card dominates with 47% of grocery shoppers using them. Describing this as “an interesting finding”,

Attitudes to Shopper Behaviour

Attitudes to Shopper Behaviour. Base: All Grocery Shopper, Republic of Ireland (n=607).

Stephen Lynam noted how, “as well as being good for consumers, they can be hugely beneficial to the large grocery retailers who have them in their armoury.”

At this year’s Retail Ireland MasterCard Annual Conference, Baroness Lucy Neville Rolfe, formerly of the board of Tesco plc, remarked that their loyalty card intelligence gave them great insight into consumer behaviour; “When we started to introduce a lot of organic lines in response to prosperity and environmental concerns, our analysis showed that organic enthusiasts also drank a lot of wine, so we introduced organic wine, and we discovered a strong correlation between first time nappy purchase and beer sales.”

Positive Outlook for the Future Probably the best news to come out of the survey, however, is that overall shopper outlook is generally positive. 51% of respondents and 52% of grocery shoppers claim that they are more positive about their financial status compared to 12 months ago.

A massive 78% of grocery shoppers, however, admitted to taking more notice and buying more goods on special offer than they did pre-recession, while 66% of grocery shoppers purchase more own label products than they did, with 69% of grocery shoppers confessing to planning their grocery shopping and personal spending more than they did before the recession.

“The good news is that fully half of grocery shoppers are more positive about their financial situation than they were last year. This is no doubt influenced by factors like rising property values in Dublin, a reduction in unemployment and

22|Retail News|September 2014|www.retailnews.ie

Special Report BIG TICKET ITEMS: In the last 2 years or so, have you delayed any bigger spend purchases (such as car, furniture, and holidays) or not?

In the next 12 months, how likely are you to make a big spend purchase that you may not have considered in the past 2 years?

Brendan Beere, Client Director, Millward Brown.

evidence of pay rises in many sectors of the economy,”Lynam adds.

However, it’s not all upbeat, and “the bad news for retailers is that the vast majority of shoppers are much more cautious about how they spend their money, even if they have more of it in their wallets,” he warns.

“Linked to the finding that brands are not uppermost in shoppers’ minds is the finding that 66% of shoppers buy more own label products than before the recession. We estimate that about half the products now sold in supermarkets are own brand- which is close to the European average.

Big Ticket Items. “Base: All Adults Aged 15+ (n=1,000).

“Grocery retailers will also not at all be surprised at all by the finding that 78% of grocery shoppers buy more goods on special offer than they did before”, Lynam notes.

“Promotions are now hard-wired into the grocery offering and from the

Methodology & Fieldwork THIS survey was conducted by means of the Millward Brown Omnibus, a twice monthly survey of a nationally representative sample of 1,000 adults. The sample is quota controlled to be representative of the Irish population. All interviews were conducted face-to-face in-home across 64 randomly selected sampling points. Sampling points are randomly selected to reflect the geographical distribution of the population. Respondents are selected on a quota basis, with interlocking controls by sex, age, marital status and social class. Results are accurate within +/- 3% of the total population.

Interviewing took place from July 30 to August 13, 2014

results of our survey, consumers are happy about that.

“If the Irish consumer could be summed up in one phrase on the basis of these findings,” Lynam concludes, “it would be ‘optimistic but cautious’.”

“Recession shopper behaviour has been normalised for the Irish consumer in 2014,” summarises Brendan Beere, Client Director, Millward Brown. “While consumers are more optimistic about their financial outlook, they remain cautious, giving due consideration to all types of spend from grocery to big ticket items. Value and price are primary drivers in choice but brands can still play a meaningful role by emphasising their quality, reliability and indeed their Irish credentials.”

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24|Retail News|September 2014|www.retailnews.ie

The Retail News Interview

Straight Talking

Vincent Jennings, Chief Executive of the CSNA, lets loose on local authorities, fires a broadside at the banks, and rails against the planned reintroduction of JLCs for the grocery sector and the absurdities of upward only rent reviews.

AS Ireland drags itself inexorably out of recession, one sector is taking longer than the rest to dust itself off, shake itself down and get back to anything approaching former glories: retail.

While there are many good reasons for this delay, including the prevalence of deep discounting both in retail stores and in the consumer mindset, Convenience Stores & Newsagents Association CEO, Vincent Jennings, believes that the Government must take its share of the blame.

“When this Government came to

power, it looked at opportunities for quick fixes and it chose to prioritise tourism and agriculture as areas that would respond quickest to stimulation,” he states. “Rather than having an integrated plan that included a variety of sectors to restore Ireland’s economy, the Government chose to be selective in where it sought solutions.

“The messages given to banks, to entrepreneurs and to venture capitalists were that we needed to put every shoulder behind the wheel of agriculture and tourism. In a depleted

money market, the banks were effectively being forgiven for placing a substantial amount of their resources into those sectors rather than retail.”

Jennings believes that “lack of stimulation and interest in retail at a state level, coupled with the fact that we were left to paddle our own canoe in terms of upward only rent reviews, put retail very much on the back-foot”.

He feels that the lack of credit for small and medium sized retailers, “meant that large corporations like Lidl, like Aldi, like Tesco, who didn’t have difficulty in persuading lending institutions to give them credit, allied with their own resources, were able to get a surer footing on the climbing wall that is Ireland’s economy, because they didn’t have to rely on things that smaller retailers had to rely on.”

Standing Up to the Banks The Government, according to Jennings, needs to take a stronger stance when it comes to dealing with Ireland’s banks.

Retail News|September 2014|www.retailnews.ie|25

The Retail News Interview “Banks run rings around Government, day in and day out,” he feels. “Even though they have every excuse under the sun for doing things the way they do, they really want to get back to where they were, to wield the power they did previously, and that’s just not going to happen. The banks have to be told who is running the show and on whose behalf: until that truly happens, you’re just going to have banks calling the shots.”

He cites the example of the banks’ recent fee hike for cash handling, which meant that retailers, like Jennings’ members, “are now paying three or four times the amount of bank fees for the same amount of work. We know that cash costs money to process but how can it cost four times the amount that it did a year ago? That was an opportunity for the state to turn around to banks and to say that these kind of increases were neither justifiable nor sustainable, or to demand there be a root and brand examination of banks’ fee structure, but it didn’t happen.”

Indeed, it is only really in the last year that the Government has started to take on board the concerns of Ireland’s retailers, Jennings notes.

“Now, there is an understanding that a substantial amount of jobs have been lost in retail and that retail remains a huge employer, hence the establishment of the Retail Consultation Forum.

Retail was slow to be given any impetus, but the Government have begun to listen to certain aspects of what we are saying.”

Retail’s importance is because it is a 26-county industry, according to Jennings: “It’s rural; it’s urban; it’s everywhere. It doesn’t require large scale infrastructure or anything like that but there does have to be sufficient return on investment for people for it

to be worthwhile.”

The CEO welcomed recent comments by Ann Phelan TD, Minister of State at the Department of Agriculture, Food and Marine and Transport, Tourism and Sport with Special Responsibility for Rural Economic Development, relating to out-of-town shopping centres and their effects on local economies.

“Jumping to the tune of a large multinational outlet or a group of retailers who choose that this is where consumers will shop doesn’t necessarily suit the Irish consumer,” Jennings rails. “I believe that giving assistance to

Ann Phelan TD, Minister of State at the Department of Agriculture, Food and Marine and Transport, Tourism and Sport with Special Responsibility for Rural Economic Development, has questioned the effects of out-of-town shopping centres on local economies.

area where Jennings feels particularly strongly about.

“We have been misled on the real reason why nothing has been done on upward only rent reviews. We do not believe that there is a constitutional impediment to this legislation but that landlords and NAMA have effectively got to the Government over the issue of Ireland’s attractiveness as a base for investment, as opposed to looking after indigenous retailers.” rural and community based employment is something that Government should be considering more and more.”

The Trouble with Local Authorities Many of the issues surrounding out-of-town development and the subsequent effects on town centres, including parking charges, rates etc are not directly handled by central government but are local authority issues. This is an

“Most civil servants working in Government departments are reasonably efficient when compared with local authorities, who are dreadfully and manifestly inefficient in their whole method of operations,” he argues.

“There are savings that can be made across the board, not merely by consolidating local authorities, but also in areas like centralised payroll etc, but every local authority seems to be a fiefdom by

itself.”

He believes that local authorities have become over-reliant on the business community to provide revenue, via rates, which he feels has “worked against local employers and against the regeneration of town and village centres across the country, which have been allowed to wither away on the vine”.

“Local authorities should be forced to become a lot more efficient and the only way to do that is to hit them in the pocket,” he argues. To that end, Jennings is calling for a planned reduction, year by year, of commercial rates, over the next five years, so that these local authorities have to run much more efficiently.

“A number of local authorities have already voted to reduce the property tax, because that is a popular thing to do, but there has been no parallel movement by these elected officials to have a structured reduction in commercial rates,” he notes.

He also describes as “farcical and hugely unfair” the fact that there is a two tier system operating on valuation, “whereby people are competing and paying vastly different rates based on different criteria”.

“There is also no appeal mechanism based on changed economic circumstances, which doesn’t

26|Retail News|September 2014|www.retailnews.ie

The Retail News Interview

make sense,” he argues. “The only circumstances in which you can appeal is if the premises itself changes, rather than the level of business. You can have a downturn of 30% but the local authority isn’t interested.”

Another issue to raise Jennings’ ire is the high cost of labour in Ireland, particularly given the Government’s plans to reintroduce JLC rates for the grocery sector.

“The JLC as a mechanism for devising rates of pay is unfair, it’s arbitrary, it’s capricious and it certainly is a barrier to the growth of our industry because it stops retailers from taking on new staff due to the huge costs involved,” he says. “We have no difficulties with a national minimum wage, but we fail to see why our sector should be paying more in wages, while people selling the exact same product in their specialist stores are not obliged to pay these premium wages.”

Onwards and Upwards on Rent Reviews?

Another big cost is rent, with a large proportion of landlords either refusing to engage with tenants on rent reductions or imposing upward only rent reviews. Senator Feargal Quinn’s

bill to abolish upward only rent reviews goes before the Dáil this autumn. How hopeful is Jennings that it will pass?

“The Government can choose to oppose it and be hypocritical about the fact that it was one of their tenets for Government when they were running

“Most civil servants working in Government departments are reasonably efficient when compared with local authorities, who are dreadfully and manifestly inefficient in their whole method of operations.”

for office,” he sighs. “We’d like the Government to allow this Bill to pass and then let the President either sign it into law or refer it to the Supreme Court to determine if it is compatible or incompatible with our Constitution.”

Jennings, however, believes that we “have been misled on the real reason why nothing has been done on upward only rent reviews. We do not believe that there is a constitutional impediment to this legislation but that landlords and NAMA have effectively got to the Government over the issue of Ireland’s attractiveness as a base for investment, as opposed to looking after indigenous retailers.”

Jennings admits that while most landlords are realistic and have acted “in a sensible fashion”, there are others (“large pension fund owners, multinationals and institutional investors”), who, either themselves or through their agents, have adopted “unbelievably bellicose, belligerent and arrogant styles in dealing with Irish retailers, large and small”.

He cites the recent example of a small retailer who was negotiating with NAMA over their rent. “They were pleading with NAMA to allow a new lease to be agreed, but eventually

Retail News|September 2014|www.retailnews.ie|27

The Retail News Interview the retailer had to close. Somebody else will get that property at a lower, realistic rent, which is so frustrating for my members. This is so unfair: it is somebody’s life and livelihood.”

Competition And Consumer Bill As mentioned in last month’s Retail News, the CSNA believes that the forthcoming Competition and Consumer Bill does not do enough to protect retailers from abuse of power by suppliers.

“While the Act does merge the Competition Authority and the Consumer Agency, it is geared mainly towards giving protection to indigenous suppliers from having their arm twisted by large multinational retailers, looking for hello money, promotional money and everythingunder-the-sun money,” Jennings notes.

“It really concentrates on the need for fairness from retailers when dealing with suppliers, rather than any reverse or parallel responsibilities for larger suppliers. Even though the Act can be read that way, that isn’t the spirit under which it was created.

“The areas of concern we had were not addressed,” he adds. “We were concerned with areas like phone companies, service companies, news distributors, license operators like PPI and IMRO. We are concerned that they can still introduce charges, increase wholesale prices to us and effectively determine retail prices. The Competition and Consumer Act has done nothing to redress that.”

Plain Packaging Another major issue for the CSNA and its members is the proposed move to introduce plain packaging for tobacco products in Ireland, which was trumpted by former Health Minister and current Minister for Children, James Reilly TD. “We don’t know whether the new Health Minister, Leo Varadkar will choose to offload aspects of public health onto the Department of Children. It would be unusual for a Health Minister not to have overall responsibility for matters of public health but Ireland manages to do things in a strange fashion sometimes, and it could be argued that James Reilly was the one to run with this particular ball and that there is a children’s aspect to this,” Jennings muses.

“How it will impact on the retail trade is very simple: it will lead to a commoditisation of the product and people will move towards buying

tobacco and cigarettes based on price rather than anything else, over a pretty short time period. Brand will mean nothing, so price will be a major factor in consumers’ purchasing decisions.”

If this happens as Jennings predicts, it will mean that retailer profits will obviously suffer, as consumers choose value products over premium. “A move to plain packaging will generate less money for retailers.

It will not affect overall demand for tobacco products but it will change what they buy and where they buy it,” Jennings notes. “We already have a very established smuggling network in Ireland and if price becomes a factor, do you really think that people will not continue to buy smuggled product?”

He doesn’t believe that a move to plain packaging of itself will lead to a reduction in youth smoking rates in Ireland. While acknowledging that price is arguably a strong deterrent in reducing smoking rates, he feels that Ireland’s tobacco prices are already at such a high level compared to the rest of Europe that price cannot be increased any more without leading to more smuggled product entering the market. “What the Government should have done 15 years ago was to cut off all potential for tobacco smuggling before they went down the price route,” he sighs.

A Unified Voice The CSNA recently joined forces with other retail bodies, RGDATA, Retail Excellence Ireland and ISME, to slam

the former Health Minister’s proposed tobacco licensing system. The combined retail bodies have requested that the Department of Health be present at the next Retail Consultation Forum.

“With a bit of luck, we will have a more open dialogue with the Department of Health,” Jennings says. “It is only in very recent years that the Department actually chose to close itself off from consultation with interest groups and that can be reversed.”

He foresees -Ireland’s retail groups working together on other issues in the future. “We all have similar interests and similar members,” he notes. “Issues such as rates, JLCs and the costs of doing business here affect all of us and it would be foolish not to join forces, to amalgamate, if only for the fact that it is more efficient for a Minister to meet with a group of people representing three or four different groups, rather than having separate meetings.”

In closing, Jennings has the following advice for Ireland’s retailers, to help lift themselves and the retail sector in general back to a position of health.

“Don’t always be waiting for somebody else to do things for you,” he states. “We should be doing things ourselves at a practical level. You should devote shelf space to Irish products, to promote Irish goods, and support local groups and community based initiatives. You can make a difference by being cleverly patriotic, and in doing so, you are securing your own future.”

28|Retail News|September 2014|www.retailnews.ie

Food & Hospitality Ireland

Maximising Profit at Food & Hospitality Food & Hospitality Ireland takes place on September 17 and 18 at the Citywest Events Centre, Dublin, and promises to be a ‘must see’ event for the retail, food and hospitality sectors.

IF you’re in retail, food or hospitality, Food & Hospitality Ireland, taking place on September 17 and 18 at the Citywest Events Centre, is a trade expo that’s not to be missed!

With a new venue, new features and many new exhibitors, the 2014 event is set to be a food and hospitality feast that will deliver on adding real value to

visitors’ businesses.

Whether you’re focused on hearing from insightful speakers, sourcing new products or are interested in learning how your business could be more profitable, Food & Hospitality Ireland will be home to all of these features, and even more, over the two-day event in September.

Frank Gleeson, Managing Director of Food Services, Aramark, one of the speakers on the Spotlight Stage.

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Food & Hospitality Ireland set to be something for everyone in the food, retail and hospitality sectors over the two days.”

Profit Shop, in association with the CSNA and ACBI, will demonstrate how retailers can maximise floor space, implement new technologies and add value to their businesses, to deliver more profit.

Toby Wand, Managing Director of Fresh Montgomery, organisers of Food & Hospitality Ireland, explains: “This is the second year of Food & Hospitality Ireland (formerly SHOP) and we’ve taken everything on board from last year’s event to ensure Food & Hospitality Ireland 2014 really helps to drive business for both exhibitors and visitors.

“The trade expo will be content rich. Our Spotlight Stage is set to feature some of Ireland and the UK’s leading speakers, and all visitors to the show can access the Spotlight Stage free of charge.”

Stellar Line-Up In a stellar line-up, representing both the retail and hospitality sectors, industry partners for Food & Hospitality Ireland include the CSNA, the Associated Craft Butchers of Ireland, Restaurants Association of Ireland, Retail Ireland and the Coeliac Society of Ireland.

“I would like to thank our partners for coming on board and helping us to create some outstanding features such as The Skillery, in association with the RAI, and the Profit Shop with the CSNA and the Craft Butchers,” Wand adds.

“In addition to the features, our exhibitors are the heart of Food &

Hospitality Ireland. For both show stalwarts and firsttime exhibitors, the two-day event is their chance to showcase the very ‘best-of’ in products and solutions.

With literally thousands of products on display, there’s

Focusing on Profit Specifically designed to help retailers’ businesses moving forward, Profit Shop, in association with the CSNA and ACBI, will demonstrate how retailers can maximise floor space, implement new technologies and add value to their businesses, to deliver more profit.

The Profit Shop, designed

by Maria O’Neill from Maria O’Neill Designs, will be a fully functional, interactive and informative shop built on the show floor. It will consist of two adjoining shops; one reflecting convenience retailing and one appealing to craft butchers. Both shops will have a connected back office that illustrates the importance of delivering

Dovinia Chocolates’ Cheese Chocolate Serendipities, just one of the new brands featured at Food & Hospitality Ireland.

profit through systems in addition to sales.

Developed to deliver practical advice to visitors, the Profit Shop will highlight how retailers can maximise

Spotlight Stage: Wednesday 17th September 2014 Time

Speaker

Topic

11:00

Eamonn Quinn, former Marketing Director and Deputy Chairman, Superquinn; Bobby Kerr, Chairman, Insomnia Coffee Company and presenter, ‘Down To Business’

Interview: Entrepreneurship’s role in food retail success

13:00

Andrea Coffey, Online Media Consultant,Google UK & Ireland

How to maximise brand presence online and grow sales

15:00

Adrian Cummins, Chief Executive, Restaurants Association of Ireland; Kevin Thornton, Head Chef and Owner, Thornton’s Restaurant; Matt Farrell Snr, Director, Diep Group Restaurants; Robbie Bargh, Founder/Director, Gorgeous Group

Panel session: Creating successful hospitality concepts

Spotlight Stage: Thursday 18th September 2014 Time

Speaker

Topic

11:00

Ronnie O’Toole, National Payments Plan Programme Manager, Central Bank of Ireland

The benefits of embracing quicker, safer and cheaper payments technologies

13:00

Frank Gleeson, Managing Director of Food Services, Aramark Ireland, interviewed by Bobby Kerr, Chairman, Insomnia Coffee Company and presenter, ‘Down To Business’

Interview: Future of food retail

14:00

Steve Wynne-Jones

Presentation: Food & Hospitality Ireland Market Survey

15:00

Rosie Akenhead, Manager, Local Business Outreach UK & Ireland, Yelp

Managing your online reputation

30|Retail News|September 2014|www.retailnews.ie

Food & Hospitality Ireland the profitability of their shop though an effective layout, signage, by using the latest technologies, and stocking the most relevant products.

The CSNA will also be on hand to meet with members and commenting on the new addition of the Profit Shop, Vincent Jennings, Chief Executive of the CSNA, explains, “The Profit Shop in association with the CSNA will clearly demonstrate to retailers how they can maximise their profits and operate more efficient businesses. With 1,200 members nationwide, we’re hoping that as many members as possible will attend FHI to avail of this free and current advice.”

The Profit Shop has teamed up with a number of suppliers to showcase emerging products and innovative new solutions.

Supporting the feature are Punchline Developments, Airlux Lighting, Higgins Refrigeration, Customer Connect Loyalty, the National Lottery – who will be revealing their new terminal, as well as Visual ID, Forbo Flooring and APT Safelink, amongst others.

Reasons to Visit Food & Hospitality Ireland is a content rich show. In addition to the Profit Shop, there are lots of additional features and reasons to visit the event including: • The Spotlight Stage, which features an engaging line-up of presentations, interviews and panel discussions.

See side panel for schedule of speakers and presentations.

• Awarding Excellence: Judged by an independent panel of industry experts, the Product of the Show Awards highlight the excellence of a particular product or service for visitors.

Successful exhibitors will be awarded with Gold, Silver or Bronze accolades for their

The Hela Spice Company’s range of naturelle oil based marinades with no allergens from Eurotaste includes a new Tomato Ketchup & Mayonnaise.

products, which will be featured in the Product of the Show area.

Show partner, the Irish Quality Food Awards, will be showcasing the winning products from the previous week’s gala awards ceremony. Visitors will have the opportunity to see and taste products directly from the 2014 award winners in the Irish Quality Food Awards feature area.

The annual Associated Craft Butchers of Ireland’s most prestigious awards are also set to take place at F&HI. Including the announcement of the coveted ‘Shop of the Year’ title, the ACBI will be hosting the finals of its National Sausage & Puddings Competition, which will see 48 butchers vying for the top prize.

The Speciality Foods competition will take place on the last day and is an ‘onthe-day’ event, with butchers encouraged to enter products into three categories - Ready to Eat; Ready to Cook and Ready to Heat.

Innovative Products and Smart Solutions Central to F&HI are the 100-plus exhibitors who will be launching the very latest products and services to the industry. Over 50% of exhibitors from 2013 are returning and there are lots of new companies who are hoping to make invaluable

contacts and generate sales.

One of the largest exhibitors at the event is JMC Packaging. “At JMC Packaging, we’re specialists in packaging materials and equipment, and we’re attending Food & Hospitality Ireland to meet our current customers and showcase our products to new contacts,” Jason Govender from JMC Packaging explains. “We offer packaging solutions to food producers and food manufacturers, and at the trade expo, we’ll be demonstrating the next generation in packaging.

We’re here to help, so I would encourage all visitors who have packaging requirements to visit us at stand B10.”

New products include: • Admailer.ie from An Post - Created for small business (and big ones) to create marketing campaigns without the big price tag; • The Hela Spice Company range of naturelle oil based marinades with no allergens from Eurotaste, including a new Tomato Ketchup & Mayonnaise; • Masterbutcher.ie - an innovative online ordering facility and eCommerce solution for butchers; • Dovinia Chocolates’ Cheese Chocolate Serendipities; • Yelp’s recently launched

Yelp Reservations; • Caterwaste’s new waste food biomass processor that can reduce waste food by up to 90%.

Other exhibitors include Armagh Bramley Apples PGI, Cobbs Cakes, Montgomery Food Consulting, Trailblazer BBQs, Taste of Cork, O’Donnell’s Bakery, Henderson Wholesale, Blue Star Coffee Company, Pathos Continental Foods, Rosie & Jim Gourmet Chicken Products, Advanced Labels, Velox Grills, CBE, Catalyic, Delpac Packaging, ASAP Ltd and Hugh Jordan.

For a full list of exhibitors, please see www.foodhospitality.ie Skilling Up Created in association with the Restaurants Association of Ireland, The Skillery is a new addition to Food & Hospitality Ireland.

Educating chefs on new skills, eight of Ireland’s top chefs will be demonstrating specific techniques that hospitality visitors to Food & Hospitality Ireland can apply to their own businesses.

The line-up includes Robbie Burns from Essence Bistro; Niall Sabongi from Rock Lobster and winner of Best World Cuisine, Kevin O’Toole from Chameleon.

Charity partner for the event is the Coeliac Society of Ireland, who will be exhibiting at the event.

FOOD & Hospitality Ireland is taking place on September 17 and 18, 2014, at the Citywest Events Centre. For full details on features, exhibitors and partners, please log onto www. foodhospitality.ie or follow the show on twitter @FHIexhibition.

To attend Food & Hospitality Ireland, please register now at www.foodhospitality.ie

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Taste of Poland

A decade ago, Poland and nine other countries joined the European Union. This was made possible thanks to tremendous efforts to meet the membership criteria.

Poland carried out comprehensive reforms, which practically changed the country from the bottom up. Poland made this leap by embarking on the path of systemic transformation, which began in 1989.

Very significant changes also took place in

excellent cuisine, alongside a wealth of leisure attractions, including culinary ones.

Polish cuisine is extremely rich and diverse, with a wealth of influences, handed down by the various inhabitants of the country throughout its history. Today, a return to healthy nutrition and to celebration of meals, to feasting is seen very clearly. A new trend – culinary tourism – is rapidly developing

nature is still nurtured. Thanks to these values, Polish agriculture has solid grounds for further development and continues to provide top quality products.

You are warmly invited to Poland to see the scale of the changes, and to familiarise yourself with this beautiful country, to enjoy the hospitality of the Polish people and to taste their excellent food.

But before you go, take the opportunity to taste Polish food in Ireland. The Embassy of Poland is taking part in Food and Hospitality Ireland 2014 (Stand No. B14). A variety of products, free and comprehensive information on business opportunities and partners in Poland will be provided. The Embassy’s staff will help you find a supplier of competitive products to thus increase your profits.

See you there!

( )

agricultural and in rural areas. Over those years, about 700,000 of the smallest farms have disappeared in a natural, evolutionary way.

Concerns associated with the EU accession soon proved baseless. The best confirmation of Polish agriculture’s success are foreign trade results. The last year was record-breaking, with almost €20 billion of exports. However, the Irish share was relatively small, amounting to €170m last year.

Polish food still acquires new consumers all the time. Indeed, Polish cold meats, dairy, bakery and confectionery products have gained significant international recognition due to their very high quality and unique taste.

Changes in rural areas have resulted in the dynamic development of organic farming, agri-tourism and rural tourism throughout Poland. An entire network of agri-tourist farms is being created, with great accommodation infrastructure and

“Did you know that food and non-alcoholic drinks in Poland are the cheapest in the whole of the EU? It is worth comparing the offer of your local supplier (17% above the EU average) with products from Poland (38% below the EU average).”

(Source: Eurostat)

and Poland is at the forefront of this move, as it offers not only traditional hospitality but also wonderful regional products and excellent cuisine. The latter is still too little known, but it certainly deserves to be discovered by Irish gourmets.

The last 25 years have seen huge changes right across Poland, which have seen the development of fast-growing transport infrastructure, a modern processing industry and modernised agriculture. However, these improvements did not interfere with the traditional rural landscape, family farming and the best values of Polish agriculture.

The respect for the land and the surrounding

32|Retail News|September 2014|www.retailnews.ie

Tobacco: Plain Packaging

Ireland Can’t Afford To Weaken Trademark Rights The Irish Government’s plan to introduce plain packaging for tobacco products risks Ireland’s rock-solid record on protecting the trademarks and intellectual property of businesses, writes Michael D. Thomas, PhD. PLAIN packaging plans have created a stir among other EU countries concerned about free movement of goods between member countries, but this is not the only reason to reject such a policy.

Ireland’s strong intellectual property regime has been an important part of making the country a magnet for foreign investment, helping to fuel the ongoing economic recovery.

One recent report by Grant Thornton predicted Ireland’s pro-business climate to attract €1.68 trillion in Foreign Direct Investment by 2015, but cautions that any restrictions on branding would make Ireland a far less attractive option for global investors.

The Austrialian Experiment In this light, it’s extremely unfortunate that lawmakers in the Oireachtas might copy Australia’s first-of-itskind mandate, requiring all cigarettes to be sold in identical unbranded packs,

at least three-quarters of which must be covered in gruesome images of death and decay. Supporters of the Australian law point to a recent survey claiming a long-term decline in Australia’s smoking rate due to the new policy. But that decline, triggered in part by several record size cigarette tax hikes, began long before the plain packaging mandate went into effect. In fact, during the law’s first year in place, retailers reported a measured increase in cigarette sales. Researchers also found that the plain packaging did nothing to deter teenagers, the law’s targeted demographic, from purchasing cigarettes.

Not only is Australia’s anti-smoking gamble failing, it’s coming at a much greater economic and societal cost.

By selectively stripping cigarette makers of the right to brand their products, Australia set a legal precedent through which the government, and not private

enterprise, holds the power to determine how products may be marketed.

This blatant disregard for intellectual property rights violates several global trade agreements and has spurred several nations to file formal complaints against Australia for violating World Trade Organisation and other international trade agreements, including among the EU member countries.

Unintended Consequences A similar attack on branding rights by the Irish government would have many unintended consequences, including the elimination of one of the country’s greatest selling points to foreign investors: its rock-solid record on protecting the trademarks and intellectual property of businesses. Moreover, stripping cigarettes of branding would embolden the criminal black market that already controls about 20% of the Irish tobacco market, and would create a precedent under which industries critical to the Irish economy could fall under crippling regulation.

Where does this change in legal status of branding end?

Studies found that regulatory policies placed on tobacco tend to cascade down to alcohol and food, and already Indonesia is considering placing a plain packaging mandate on beverage companies.

This should be of

particular concern to Ireland, where beer and whiskey make up a significant percentage of exports.

Guinness, for example, is one of Ireland’s most valuable brands, but if stripped of the right to market its beer with its distinctive font and harp, it would lose much of the marketplace advantage it has earned through decades of consistency.

New trade restraints will be justified by expanded arguments about the health effects of rival country’s imports. Likewise, without branding, it would become easier for counterfeiters to pass off knock-off stout as Guinness, and customers would have less confidence in their purchases.

Cigarette companies are not as critical to Ireland’s economy as, say, Guinness and make a product that many, including myself, find distasteful. However, a selective attack on their branding rights weakens the entire intellectual property regime that helps sustain Ireland’s economy and emboldens the government to place further regulations on branding.

About The Author MICHAEL D. Thomas is Assistant Professor of Economics at the Heider College of Business at Creighton University in Omaha, Nebraska.

Move over to Costcutter.

Proud to be local

Contact: Ollie Savage 086 6036142 Barry Ba B a Group, Upper Quartertown, Mallow, Co. Cork www.barrygroup.ie

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34|Retail News|September 2014|www.retailnews.ie

Confectionery

Sweet Success New product development is fuelling growth across confectionery, including chocolate, sugar confectionery and gum.

NEW product launches and the strong development of existing products lines through brand extensions, involving a wider range of formats, are driving growth in the confectionery sector, across both chocolate and sugar confectionery. According to the latest report into the sector by Euromonitor International, both chocolate and sugar confectionery are expected to increase in constant value at a CAGR of 2% to

2018, while gum is expected to grow at 1%.

Nestlé Confectionery Nestlé Confectionery’s flagship brand Kit Kat has announced a significant new launch for its Chunky format: Kit Kat Chunky Double Caramel.

The new bar is set to offer consumers a unique concept– two portionable halves, each containing a

contrasting texture of caramel. One half will feature a deliciously smooth runny caramel inside, whilst the other half contains a contrasting crunchy caramel filling. Each caramel texture will sit on top of crispy wafer and will be covered in thick milk chocolate.

While targeting 25-35 year olds, the double textured caramel centre will also ensure that the bar will have a broad consumer appeal. Available since August 25, Kit Kat Chunky Double Caramel has an RRP of 94c.

The launch of Kit Kat Double Caramel is supported by a digital and social media campaign set to reach 23m people across the UK and Ireland, with at least seven unique opportunities to see. A viral film designed for Youtube

New Kit Kat Chunky Double Caramel is set to offer consumers a unique concept– two portionable halves, each containing a contrasting texture of caramel.

Retail News|September 2014|www.retailnews.ie|35

Confectionery

One half of Kit Kat Chunky Double Caramel will feature a deliciously smooth runny caramel inside, whilst the other half contains a contrasting crunchy caramel filling.

launches this month and will be amplified through social media and digital channels, including Facebook and Google.

In addition to this, the launch will also be supported through an outdoor advertising campaign, as well as strong in-store point of sale displays.

Kit Kat has over 1m fans on Facebook alone, who will be keen to try

which sees one of Ireland’s best loved confectionery brands given a new fruity twist – two flavours in one sweet!

Rowntree’s Fruit Pastilles Froosions are available in both a single tube (RRP 78c) and a sharing bag (RRP €1.82).

Each is filled with sweets that combine two tasty flavours together, such as blackcurrant and apple, lemon and lime, and pineapple and orange.

Rowntree’s Fruit Pastilles recently launched new Fruit Pastilles Froosions, which sees one of Ireland’s best loved confectionery brands given a new fruity twist – two flavours in one sweet!

this major new launch for themselves.

Retailers should therefore expect a high level of trial.

Rowntree’s Fruit Pastilles recently launched new Fruit Pastilles Froosions,

Aimed at 25-44 year olds, Froosions has the same target audience as Rowntree’s Fruit Pastilles, so the new brand is benefiting the brand’s popularity.

Rowntree’s Fruit Pastilles is Ireland’s number one impulse sugar brand, with a value share of 14.9%, and also Ireland’s top performing impulse sugar line, with a value share of 4.6% (Source: ACNielsen, 52 Weeks w/e 20/04/2014).

Indeed, the Irish sugar confectionery market is valued around €100m and is growing by The hugely popular Rowntree’s Randoms brand has taken the 1.5% year on year confectionery market by storm.

(Source: ACNielsen

Scan Track, Total Market incl. Dunnes, 52 w/e February 23, 2014). Rowntree’s, one of Ireland’s favourite confectionery sugar brands, is valued at €11m and continues to see strong performance, driven mainly through a continuous focus on brand renovation and innovation.

The brand’s iconic Rowntree’s Fruit Pastilles product is the number one sugar single in the Irish market, while Rowntree’s Jelly Tots is the number two product, with Rowntree’s Randoms joining them within the within the top 10 best-selling sugar singles in the Irish market.

The Rowntree’s Multipack range has experienced incredible growth of +63% to value sales of €1.1m, right on trend for Family Sharing, and the brand has also seen strong category performance within Sharing Bags with sales of €3.7m. Innovation is a key driver in the sugar market and Rowntree’s continues its focus on new product development with the launch of Rowntree’s Randoms Sweet N Sour, available in a single impulse format and also a larger family sharing bag. Aimed at Randoms’ core target audience of 18-24 year olds, each bag doesn’t just contain standard sour sweets but the tongue tingling combination of a sweet foamy sweet, sour jellies and super sour liquid filled sweets.

Ferrero Ferrero will be supporting its Ferrero Rocher, Ferrero Collection and Raffaello brands with its biggest ever campaign investment for the forthcoming Christmas season. With three multimedia campaigns across its Ferrero Rocher, Ferrero Collection and Raffaello brands and the introduction of a range of new products, the business is

36|Retail News|September 2014|www.retailnews.ie

Confectionery a premium tier of boxed Raffaello chocolates, whilst chocolate assortments. A two new seasonal formats new premium assortment will also join the line-up range, Ferrero Golden this year. New Ferrero Gallery, is launching this Rocher Star Tree Decoration September ahead of the and a Raffaello Star Tree Christmas gifting season.

Decoration are sure to The luxurious box contains attract shoppers on the individually-wrapped lookout for new and unique chocolates including; Ferrero gifting solutions.

Rocher, Ferrero Rondnoir, Kinder is also expanding Ferrero Cappuccino, Ferrero its gifting range this Manderly, Mon Cheri, Christmas into the growing Ferrero Tenderly Nougat selection pack market, with and Ferrero Tenderly White. the introduction of new Ferrero Golden Gallery is Kinder Mini Mix 79g. The set to grow the assortments array of Kinder delights category as a whole by which include; Kinder offering shoppers greater Surprise, Kinder Chocolate choice for their various Medium Bar, Kinder gifting occasions. Ferrero Chocolate with Cereal and recommends ranging Golden a Kinder Mini Figure, will Ferrero will be supporting its Ferrero Rocher, Ferrero Collection and Gallery alongside Ferrero bring in new shoppers to Raffaello brands with its biggest ever campaign investment for the Collection in order to drive the all year round brand by forthcoming Christmas season. incremental purchases. The expanding occasions and spending a total of Stg£7m, ever widespread seasonal new range will be available encouraging trial. marking Ferrero’s biggest initiative, reinforcing its support plan to date to delicious taste credentials, maximise awareness of the modernity and relevance. total portfolio.

The new creative is set The Ferrero business to drive awareness and is enjoying a period of trial amongst potential rapid growth in the UK shoppers, featuring a tagline and Ireland, with plans to of ‘Make your moments drive this further through golden’. The campaign will continued investment in its also be supported with brands, backed by impactful cinema advertising, video in-store campaigns. on demand, digital, press, Christmas is a key focus experiential sampling and as it accounts for 39% of in-store media. Ferrero confectionery sales (Source: Collection will also receive Nielsen Scantrack, total its own press and TV chocolate confectionery. MAT advertising campaign to to 19.07.14. Christmas = reinforce the special gifting 17wks to 28/12/13). occasion.

Raffaello will receive its own standalone campaign, repositioning Ferrero Rocher is Ferrero has identified the range as an everyday premium treat. launching its biggest a consumer demand for in a 22-pack and a 45-pack.

New Kinder Figures 15g Raffaello will receive will also be launched in a its first ever standalone three pack and six pack, campaign this November. providing shoppers with Setting out to resonate with the perfect gifting treat 20-40 year-old females, it for children during the aims to drive further sales Christmas period. Kinder for retailers, by positioning Kids performed exceptionally Raffaello as an everyday well during 2013, with premium treat, rather double digit growth YoY, than purely an occasionsboosting festive sales for based gift. With taste being retailers. at the heart of Ferrero’s Following the successful products, the campaign will launch of Kinder Surprise be supported by significant Pink and Blue eggs in sampling activity, as well as September 2013, the limited outdoor and digital. edition variants are back A new versatile 150g for another year, offering box format will be available popular and relevant toys, Available from September, Kinder Surprise Pink and Blue eggs from the brand, containing alongside a much loved will feature Barbie Fashionistas and Transformers limited edition individually wrapped chocolate treat. Available toys.

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Confectionery marketing, TV advertising, VOD, mobile, digital and social media.

The support package will include a significant shopper marketing programme, which will revitalise the brand in-store and will be tailored for different store types and sizes. A brand new TV creative will coincide with the launch and will run for three weeks, driving mass awareness and footfall for retailers.

Caffrey’s Caffrey’s have launched a new range of Irish fudge to the market, made from Irish ingredients including Irish milk and Irish butter, supporting Irish farmers. The range includes Butter Fudge and Irish Liqueur Fudge. They

are an ideal gift and also available as a hamper filler. The new range is an excellent quality Irish fudge at the right price point.

Caffrey’s have also unveiled a new look for the iconic Caffrey’s Tea Cake.

The new packaging for Caffrey’s Tea Cake was launched this month. The packaging brings a new fresh look to the Tea Cake range. It includes a new inner design and the introduction of inner bar code for each individual Tea Cake, making it a must for counter display. The new packaging has already increased sales, proving there is great support in the marketplace for Irish manufactured products.

Caffrey’s are celebrating 70 years of manufacturing in Ireland, producing 100 different confectionery products, including Snowballs, Tea Cakes, Mallows, three brands of boxed chocolates (Caffrey’s, Blarney, and Irish Gold), and a large range of Basket Easter Eggs.

From Ferrero, tic tac is launching its biggest ever on-pack promotion, ‘Find a Fiver’, with the aim of driving relevancy and frequency amongst its core consumer group, 16 to 34 year olds.

from September, Kinder Surprise Pink and Blue eggs will first feature Barbie Fashionistas and Transformers limited edition toys. The second burst will be available from December and the third from June 2015, with the toy range including Marvel Avengers, Disney Fairies, Sprinty and Fashion Dolls. Every limited edition coloured single egg will feature a licenced toy, whilst each three pack will contain one licenced toy along with two toys from the wider Kinder Surprise range.

Kinder Surprise will be supported by a Stg£3.8m media spend in 2014/15, including TV, digital, and shopper media. The Barbie Fashionista and Transformers launch will be supported by shopper media and Stg£1.1m TV support behind a brand new 10-second TV tag in September and October.

Also from Ferrero, tic tac is launching its biggest ever on-pack promotion, ‘Find a Fiver’, with the aim of driving relevancy and frequency amongst its core consumer group, 16 to 34 year olds. Every single shopper who buys a pack of tic tac during the campaign will be a winner of either £5 or a voucher for £5 off a minimum spend with a selection of partners. The activity will be supported with a £1.7m package, including significant shopper

Caffreys have unveiled a new look for their iconic Caffreys Tea Cake.

Swizzels Confectionery brand Swizzels is launching a new sweet range this summer that sees household favourite retro brands, Drumsticks, Refreshers,

Caffrey’s have launched a new range of Irish Fudge to the market, made from Irish ingredients including Irish milk and Irish butter, including Butter Fudge and Irish Liqueur Fudge.

are available in 125g bags and a 150g box, retailing from €2 to €2.50. These

Swizzels is launching Drumsticks, Refreshers, Love Hearts and Double Lollies, in a delicious soft range called Squashies.

Retail News|September 2014|www.retailnews.ie|39

Confectionery

The Squashies range of Double Lollies, Drumstick, Refreshers and Love Hearts are now available in 45g bags.

Love Hearts and Double Lollies, transformed into a delicious soft range called Squashies.

From Double Lollies to the popular Drumstick gums, we all fondly remember these iconic sweets from our childhood and now you can re-live the memories with a soft version of these retro treats. With no artificial colours, there’s a Squashie for everyone to tingle the tastebuds of all big kids.

The Squashies range of Double Lollies, Drumstick, Refreshers and Love Hearts are now available in 45g bags from SuperValu, Centra, Londis, SPAR, MACE, Costcutter and Topaz stores. Larger 160g bags are also available at Dunnes Stores across

Ireland. The RRP is €0.50 for the 45g bag and €1.89 for the 160g bag.

The Natural Confectionery Company Dublin Zoo has recently welcomed The Natural Confectionery Company,

from Mondeléz, on board as sponsors of the Asian elephant habitat - the Kaziranga Forest Trail.

The partnership between Dublin Zoo and The Natural Confectionery Company is a great fit for both companies and will help contribute to the upkeep of the Kaziranga Forest Trail and conservation programmes in the wild.

In a double celebration, Dublin Zoo is celebrating the arrival of a new Asian elephant calf, joining the rest of the herd – Bernhardine, Anak, Asha, mum Yasmin and dad Upali, in the Kaziranga Forest Trail at Dublin Zoo, which will now be sponsored by The Natural Confectionery Company.

Karl Tyndall, Brand Manager for The Natural Confectionery Company commented, “Here at TNCC,

we value the importance of fuelling imagination through learning and play for all the family, so we are very excited to come on board as the sponsor of the Kaziranga Forest Trail. We are also proud that this support can make a positive impact on the lives of these wonderful elephants.”

Mars Ireland Galaxy is the second biggest chocolate brand in Ireland (Source: Nielsen Scantrack Total Chocolate Value Sales MAT to July 13, 2014) and is currently growing at +6% (Source: Nielsen Scantrack Total Chocolate

Leo Oosterweghel, Director at Dublin Zoo with Karl Tyndall, Brand Manager for The Natural Confectionery Company, with his son Oliver, and Emma Kiernan, Marketing Manager at Dublin Zoo.

Starbar Goes For Glory PICTURED is Shane Guest, Senior Brand Manager for Mondeléz, with Ireland’s top models, Roz Purcell, Karena Graham and Georgia Salpa, announcing the new Cadbury Starbar #NoNutsNoGlory competition. Cadbury Starbar is giving Irish men the chance to hang out with Georgia, Roz and Karena on a once-in-alifetime trip across Dublin, London and Abu Dhabi for the Grand Prix Final.

All they need to do is go to nonutsnoglory.ie and upload their best photobomb picture to be in with a chance.

New Gallaxy Little Treat, is 23g of pure pleasure, combining the need for an adult treat with an on-the-go format solution.

Galaxy Value Sales, latest 12 weeks to July 13, 2014).

This autumn, Galaxy is introducing Gallaxy Little

40|Retail News|September 2014|www.retailnews.ie

Confectionery Treat, a nifty new way to enjoy its silky smooth milk chocolate. This latest addition to the range is 23g of pure pleasure, combining the need for an adult treat with an on-the-go format solution. It has an RRP of €0.69 and comes in 36 count display ready cases, perfect for popping beside the till or at the coffee station.

The nationwide roll-out will be supported by a strong outdoor campaign, including Super Rears, Metro Panels and 6 Sheets at Point of Purchase, along with a heavyweight digital activation programme. In-store, the launch will be supported with a tailored suite of visually engaging POS to ensure the product cannot be missed, driving incremental, impulsive sales.

This new addition to the range comes on the back of the hugely successful Galaxy Style Exchange campaign earlier in the summer that invited consumers to upgrade their wardrobe by swapping stylish items of clothing with friends.

Wrigley’s Extra Extra, the number one chewing gum brand in Ireland, experienced yet another outstanding year of growth moving up four positions to number 11 in this year’s Nielsen ‘Top 100 Brands’.

Following on from the successful launch of Extra Bubblemint in Q2 2013, Wrigley’s Extra launched new Extra Bubblemint Bottle formats

Wrigley’s Extra launched the new Extra Bubblemint Bottle format across grocery, convenience and petrol forecourts in Q2, 2014, resulting in category growth for retailers.

Elizabeth Shaw is extending its offering over the festive period with the launch of a limited edition Dark Chocolate Gingerbread Crisp.

Wrigley’s Extra is set to delight once more in 2015 with further NPD and national oral care campaigns.

across grocery, convenience and petrol forecourts in Q2, 2014 which is resulting in category growth for retailers. This NPD was supported by the highly successful ‘Superstar Smile’ campaign, which highlights the importance of oral care to consumers and is attracting new gum chewers to the category.

The innovative “On the Go” Bottle format is proving a big hit with retailers and consumers alike. Extra Ice Citrus NPD was also launched in Q1, 2014 supported by new TV advertising running throughout 2014, tapping into the growing consumer trends towards oral care and fruit flavoured gum.

Wrigley’s Extra is set to delight once more in 2015 with further NPD and national oral care campaigns.

Elizabeth Shaw Elizabeth Shaw, the classic chocolate brand, is extending its offering over the festive period with the launch of a limited edition Dark Chocolate Gingerbread Crisp, a combination of quality dark chocolate, gingerbread and its classic honeycomb crisp, is a festive twist on the brand’s ever popular traditional Mint Crisp.

The much loved chocolate company will also be offering two varieties of a new gift bag, including a Assorted Crisp Gift Bag and Mint Crisp Gift Bag that come in 150g with a swing tag and bow, making it an idea stocking filler or small hassle free gift for Christmas.

“We wanted to do something that truly captured the taste of Christmas this year and what better flavour is

there than gingerbread?” noted Karen Crawford, MD at Elizabeth Shaw. “The delicious combination of the spices from the gingerbread, mixed with our classic honeycomb crisp pieces creates a truly tasty Christmas treat that we are certain consumers will enjoy.”

Elizabeth Shaw’s new Assorted Crisp Gift Bag comes in 150g with a swing tag and bow, making it an idea stocking filler or small hassle free gift for Christmas.

Retail News|September 2014|www.retailnews.ie|41

Retail Ireland: Monthly Update BUDGET SUBMISSION CALLS FOR BOLD ACTION TO STIMULATE SPENDING RETAIL Ireland recently published its pre-budget submission, calling on the Government to boost consumers’ income through tax cuts and, in doing so, encourage spending and bolster jobs in the retail sector. With sales of big ticket items like new cars and furniture recently showing impressive growth, and consumer sentiment now at a seven-year high, Budget 2015 presents a real and valuable opportunity to safeguard retail’s recovery and secure the industry’s future.

Our submission focuses on five key priorities: • Impose no new costs on retailers and make it cost-effective for retailers to hire new staff by reversing last year’s changes to employers’ PRSI; • Cut income taxation, ensuring that consumers have more money to spend; • Freeze or reduce other consumer taxes, such as excise duties on alcohol, which are amongst the highest in Europe; • Incentivise investment in town centres and encourage use of vacant units; • Instil confidence in consumers by “confidence checking” Government announcements - often speculation about what the Government intends to do acts as a deterrent to retail spending.

Retail has been hardest hit by the recession. 50,000 jobs were lost and many businesses closed. Despite this, with 270,000 employees, the sector remains Ireland’s largest and most geographically diverse industry, with enormous potential. Our prebudget media strategy and public affairs campaigns will continue to stress that this is a critical time for the industry, and the Government must do all it can to ensure that recent signs of stability and recovery are nurtured and strengthened.

Second Retail Consultation Forum ON September 11, a delegation representing Retail Ireland members participated in the second session of the Government’s Retail Consultation Forum, the dedicated engagement forum for Government and the retail industry established under the Action Plan for Jobs 2014.

At the second meeting, Retail Ireland had the opportunity to engage with newly appointed Minister of State for Business and Employment, Ged Nash TD, and senior public policy decision makers to discuss solutions and propose strategies to reinvigorate our embattled town centres. Building on our recent appearance at the Oireachtas Committee on Town Centre Rejuvenation, we used this opportunity to once again stress the significant role played by traditional town centre retailing and the critical need to act on anti-social behaviour and the impact on business, high street vacancy levels, upward only rent reviews and exorbitant local authority rates. Our presentation made the following proposals: • Local authority rates should be frozen or reduced; • Senator Feargal Quinn’s Bill on upward only rent reviews should be supported by Government; • Innovative incentives should be offered to encourage use of vacant high street shop units; • Adequate resources must be properly invested into making our towns and city centres better places to live, visit, shop and do business.

The recession has had a devastating effect on the spirit and vibrancy of our town centres. However, as the domestic economy turns the corner into recovery mode, now is the time for Government to act to ensure that Irish town centres regain their traditional role as catalysts for local employment, regional investment and community prosperity.

The forum will meet for the third time towards the Minister of State for end of the year, with the next discussion scheduled to be Business and Employment, centred on local authority supports, retail skills and training Ged Nash TD. and the impact of online shopping on traditional retailing.

Time to Nurture Retail Recovery

JUNE’S official retail statistics from the CSO showed that sales are finally beginning to recover after years of decline. The Retail Sales Index showed that the value of sales, excluding new cars and sales in bars, rose by 2.5% compared with June 2013. The volume of those sales rose by 4.5%, highlighting a trend which indicates retailers are continuing to discount prices to drive sales.

June saw annual increases in sales across supermarkets, service stations, fashion stores and electrical outlets.

Furniture stores saw an impressive 16% jump in the value of their sales, mirroring the strong recovery in the property market.

In our media commentary on the figures, we highlighted that a pattern of sales growth in 2014 has clearly emerged. While some retail categories remain in difficulty (June’s gains were offset somewhat by falls in department stores, specialist food stores like butchers and bakeries, and in hardware outlets), overall sales have risen every month for the first half of this year, with second quarter growth, excluding motor sales, up over 2% from the same period in 2013.

Our commentary also reiterated that retail’s emerging recovery should not be taken for granted. We welcomed the Government’s very wise decision to include retail in their recently published revised list of priorities and we continued to encourage income tax reductions in October’s budget as the best way to nurture growth in the domestic economy.

Tel: 01-6051558 www.retailireland.ie

42|Retail News|September 2014|www.retailnews.ie

Fuels

The Heat Is On

Solid fuel sales are growing in the FMCG sector, as consumers embrace the return to real fires, while demand for spot heating is seeing increased demand for mobile heating appliances.

INCREASES in the cost of central heating have led to growing numbers of consumers ‘spot heating’ their home, as they can save money by heating specific areas, rather than running their central heating throughout the whole house. There has been a significant return to real fires right across the country, while the growth in sales of mobile heating appliances continues apace as more and more consumers seek to curb spending wherever they can. Meanwhile, sales of stoves have seen exponential growth throughout the country, further accelerating demand for solid fuel sales in-store.

Bord Na Móna Fuels Bord Na Móna are driving innovation in the solid fuel category with a new range of premium wood products.

“Bord Na Móna is a brand synonymous with quality home heating products and we are setting

New Bord Na Móna Kiln Dried Hardwood Logs come in a convenient carry-home pack.

Bord Na Móna Kiln Dried Kindling is sure to prove hugely popular with Irish solid fuel users thanks to its low moisture content.

the standard with an exciting Irish sourced premium quality wood

offering,” explains Elaine Negi, Product Portfolio Manager, Solid Fuels. “To that end, we are introducing our Kiln Dried Wood range, sourced from fully sustainable woodlands.

Products include Kiln Dried Hardwood Logs in a convenient carry-home pack and a larger 400kg crate format, as

New season. New products.

And new ways to grow your business.

44|Retail News|September 2014|www.retailnews.ie

Fuels

Bord Na Móna’s new Stove Log: an instant real fire which has been specially designed for stoves.

Bord Na Móna’s peat briquettes are clean and suitable for stoves, as well as open fires, and are a smokeless fuel.

Bord Na Móna Premium Stove Fuel: the long lasting, clean buring fuel.

Bord Na Móna offer a broad range of coals, including Black Diamond Cosyglo Smokeless Gems.

well as Kiln Dried Kindling in 3kg and 5kg packs.”

Solid fuel is still as popular as ever with Irish consumers as a main source of heating. Sales of wood are showing huge growth in the FMCG sector, with 2013 figures tracking a massive 42% over those from 2012.

“Home heating accounts for a significant amount of the household budget and the consumer is always looking around for manageable and economical heating solutions, hence the growth in solid fuel sales in key channels and the use of stoves,” notes Patricia Mulligan, Customer Activation Manager. “At Bord Na Móna, we continue to grow and develop our products to meet a wide range of fire performance requirements, providing Irish shoppers with a variety of choice and value when it comes to home heating.”

The Bord Na Móna Kiln Dried Hardwood Logs come in a square plastic bag, for easy stacking at the point of purchase, and the handles on each bag mean they are easier for consumers to carry. They also have a moisture content of less than 20%, compared to much higher moisture

levels for air dried wood. What this means is that kiln dried wood burns hotter, burns for longer, has lower ash, lower tar and creosote build-up in the chimney and sparks less.

Another new product this year is Bord Na Móna’s new Stove Log, an instant real fire which has been specially designed for stoves. Ireland has witnessed a massive increase in stove penetration throughout the country, and the Stove Log provides the perfect solution. The new products complement Bord Na Móna’s existing entry level air dried log product, as well as their Eco Logs, available in an 8 pack and 16-pack.

For over 80 years, Bord Na Móna, the largest supplier of solid fuel in Ireland, has led the way in designing an innovative and convenient range of quality fuel solutions to Irish consumers. The Bord Na Móna range features coal, smokeless coal, peat briquettes and convenience products.

Homestead After the launch of the Homestead brand in 1986, the firelighter range quickly became a stable product within the brand’s portfolio, generating

46|Retail News|September 2014|www.retailnews.ie

Fuels

This year will see an increase of investment in the Homestead Firelog, which will mean deeper, more frequent promotional activity for this hugely popular product.

It is estimated that Homestead Firelighters account for 53% of the total Firelighter sales within symbol groups and independent retailers, while rivalling the two leading brands in Ireland.

considerable sales in this category.

It is estimated that Homestead Firelighters account for 53% of the total Firelighter sales within symbol

groups and independent retailers, while rivalling the two leading brands in Ireland.

Over 70% of households have open fires and the ignition sector is one of the fastest growing sectors in the household category.

The Homestead fuels range consists of two skus of firelighters, 30’s and 60’s, and a Firelog which was introduced to the range in early 2005.

With the increase in trading of Firelogs in the Irish market, a full

review of the Homestead promotion plan has taken place, resulting in an increase of investment in the Homestead Firelog, which will mean deeper, more frequent promotional activity in line with the market.

Homestead Brand Manager Janice Gibney is delighted to come to the table with this increased investment, which will still give retailers the healthy margin they know and love from Homestead, while continuing to bring value home to its consumers.

SHS: Ireland’s Leading Lights MAGUIRE & Paterson, from SHS Sales & Marketing, continues to lead the match market in Ireland, claiming over 80% market share and 90% brand awareness, making it one of Ireland’s best known and longest established brands. A combination of attractive packaging, added consumer value and excellent trade deals have all contributed to establishing Maguire & Paterson as the market leading match brand.

The range of Maguire & Paterson safety household matches are a must stock in the run up to the winter season. The match of choice with Irish consumers, Maguire & Paterson matches offer great value, reliability and safety for Irish homes.

For extra convenience, SHS also offer the Cricket Firepower household utility lighter. With increasing popularity year-on-year, the Cricket Firepower is supported by a strong promotional programme. For optimal display options in your outlet, Cricket Firepower is available in a standard shelf ready tray, clip strip and free standing floor display.

Maguire & Paterson and Cricket are both managed by SHS Sales & Marketing. Both brands conform to and exceed all international and EU safety standards for ignition products.

The Maguire & Paterson and Cricket brands, distributed by SHS Sales & Marketing.

48|Retail News|September 2014|www.retailnews.ie

Fuels BIC Lights The Way Every day, BIC produces and sells six million lighters around the world, making it the number one branded pocket lighter worldwide and also number one in Ireland (Source: Online Harris Research: Consumer preferences for cigarette lighters in Southern Ireland, January 2013: 502 respondents).

BIC understands how competitive a category the lighter market is in Ireland and, as with everything the brand does, they want to ensure that stocking and selling their lighter ranges is made as easy as possible for their retail partners.

Research has proven that impactful displays increase lighter sales by 120% (Source: Action Plus, Ireland Lighter Shopper Study Report, July 2011, involving 800 shoppers and interviews in-store). With this in mind, BIC have created the BIC lighter shaped display towers. These towers offer easy, impactful display, while ensuring that BIC lighters stand out and drive your rate of sale!

A student enjoys the comfort of a warm study using a Flogas Superser Radiant heater.

Flogas As central heating costs continue to rise, retail customers will be urgently seeking cost-effective solutions to control their home heating bills.

Superser heaters are a consistent bestseller because they offer your customers the opportunity to spot-heat a room quickly and cost-effectively and demand for Superser heaters is likely to be this strong this winter. “We are urging retailers not to be caught out and stock up on Superser heaters to meet the potential demand,” warns Eoin O’Flynn of Flogas Ireland, the exclusive distributor for Superser in Ireland and the UK. Retailers who want to stock up on Superser mobile heaters for the winter months should contact Flogas, the exclusive Superser distributors, on (041) 9831041 or www.flogas.ie.

“Flogas Superser heaters are the perfect solution for cost-conscious customers looking to control their heating bills. They are extremely useful as an instant, economic and portable way to ‘spot-heat’ a room quickly, as many customers find it far cheaper than turning on the central heating for an hour or two,” explains O’Flynn.

Flogas supplies two very contemporary looking and stylish mobile heaters, the Superser Radiant and Superser Catalytic. In particular, the Superser Catalytic burns without a flame and has lower touch temperatures, making it safer and it’s fitted with easy glide castors, which allows for trouble-free moving from room to room.

Flogas is very much a fuel for today. Flogas cylinders are a familiar sight at retail outlets throughout the country. The butane cylinder is a clean and economical choice for consumers and is hard to beat as a low cost, versatile energy package.

Propane direct dealers have been reporting strong annual sales growth and many customers want the benefits of gas in the home for fires and cooking but are either not on the natural gas grid or don’t want to go through the hassle of changing, so find propane cylinders in a discreet corner of their back garden a very practical alternative.

Flogas was the first company in Ireland to introduce the Securiseal (gas cylinder seal) for Propane cylinders, once again proving total commitment to their bottled gas brands. Similar to the Butane seal, the Securiseal is a solid, tamper-proof cylinder seal, made from a resilient polyethylene material of the highest

The BIC lighter shaped display towers offer easy, impactful display, while ensuring that BIC lighters stand out and drive your rate of sale!

quality - far superior to some of the other shrink-wrapped bottled gas seals currently on the market.

Flogas has an excellent distribution system, with maximum coverage. The company has three marine gas terminals, at Drogheda, Cork and Belfast, and a land terminal at Ballyhaunis. Flogas operates a nationwide network of distributors who fill cylinders and deliver bottled gas to dealers in their area.

Distributors are strategically located all over the country to ensure constant and speedy delivery of bottled gas – even in winter on the cold, icy roads, when demand for bottled gas is high.

A nationwide network of Flogas aftersales personnel are on 24hour call for appliance repairs and maintenance.

Flogas supports all its products and services and plans through innovative dealer promotions, excellent point of sale material, targeted advertising and public relations.

For retailers looking to save money on their own overheads either at work or at home, Flogas also supply natural gas to the commercial and residential natural gas market. Flogas Natural Gas offers a very competitive rate to small to medium business customers.

Retail News|September 2014|www.retailnews.ie|49

Irish Food Co-op

Cooperation is the Key A number of Irish food producers have joined forces to drive distribution and sales with the formation of the Irish Food Co-op.

‘TOGETHER we are stronger’ was the core message coming through from the seven founding food companies at the recent launch of the Irish Food Co-op. These southeastbased award winning food companies have joined forces to maximise their efficiencies and distribution.

The official launch of the Irish Food Co-op marks the beginning of a new era for Irish food producers and retailers alike; comprising seven artisan food companies, this newly formed entity helps solve one of the biggest challenges faced by Irish food producers for decades; that of transporting their range of quality products from their own premises to national retail shelves. At the core of the Irish Food Co-op rests a passion and a commitment to work together for the benefit of all members.

Award Winning Food Businesses The seven founding members all manage successful food businesses in their own right, producing brands consumers know and love, such as Knockanore Cheese, Killowen Yogurts, O’Neill’s Bacon, Tastefully Yours chutneys & relishes, Carrigbyrne farmhouse cheeses, Mileeven Fine Foods’ honey and the Little Mill brown bread mix.

It’s not surprising that each company has received multiple Great Taste and Blas na hÉireann awards for their product ranges.

However, these seven forward thinking companies understand that by working together, they are even stronger.

Under the newly formed company, food producers will now deliver their products to one central warehouse managed by the Co-op. The recently appointed support team will manage all distribution, administration, invoicing, sales and marketing activities, thus driving cost efficiencies, increased productivity and ultimately sales for all members.

The benefits of such an initiative to Irish retailers are considerable; retailers will receive one delivery and one invoice from multiple producers, significantly reducing the time and administrative cost associated with dealing with individual companies.

At the recent launch of the Co-op, Government bodies, retailers, food companies and the media met the seven ambitious food companies. Attendees at the event enjoyed a wide selection of canapés prepared by celebrity chef Edward Hayden, using the finest of ingredients provided by the Co-op members.

Pictured at the launch of the Irish Food Co-op are the seven founding members, accompanied by General Manager of the Co-op Eoghan Hegarty (centre); sitting: Sarah Gough, Mileeven Fine Foods; Audrea Hassett, Tastefully Yours; Eamonn Lonergan, Knockanore Cheese; Mary O’Neill, O’Neill’s Dry Cure Bacon; Pauline Dunne, Killowen Farm; (standing): Patrick Berridge, Carrigbyrne Farmhouse Cheese; Eoghan Hegarty, GM Irish Food Co-op; Robert Mosse, The Little Mill Company.

Kilkenny Leader Partnership Funding The venture was made possible through funding provided by Kilkenny Leader Partnership, and thus it was fitting that the event was officially opened by KLP CEO, Declan Rice. Rice reiterated the support of Kilkenny Leader Partnership for the venture: “Today is only the first step in this exciting journey for Irish producers; as the Irish Food Co-op expands and evolves, so too will the support from our partnership.”

This sentiment was echoed by Eoghan Hegarty, General Manager of the Irish Food Co-op. “This innovative approach opens up opportunities for smaller local producers

to increase their market footprint both in Ireland and internationally,” Hegarty noted. “We would not be at this point but for the passion and commitment of both the KLP and the seven starting companies, and we look forward to bringing other quality Irish food producers on board over the coming months.”

Sarah Gough, owner of Mileeven Fine Foods and Chairwoman of the Co-op, concluded the event, speaking on behalf of the member producers, highlighting in particular their drive, enthusiasm and dedication.

The Irish Food Coop is based in Piltown, Co Kilkenny. For more information, contact the office on 051 364401 or visit www.irishfoodcoop.com.

50|Retail News|September 2014|www.retailnews.ie

Bakery

Bake To The Future New research by Bord Bia into the bakery category in Ireland and the UK makes for interesting reading.

BORD Bia recently carried out consumer research into the bakery category in Ireland and the UK to assist bakery companies to understand the changing needs of the consumer, their purchase and consumption motivations and key considerations at the point of purchase.

The project comprised qualitative and quantitative phases - including an online survey of 2,000 grocery shoppers in the ROI and the UK - and the fieldwork took place in April and May 2014.

This information is based upon two online surveys and a series of focus groups and super groups, as well as four in-store sessions.

Comparing The Markets The research results show some interesting similarities and differences between the two markets. ROI baked goods shoppers are more likely to plan their purchases in advance, while UK shoppers show a greater propensity to buy on impulse.

In both markets, however, freshness, taste and price are listed are the most important drivers of bread choice, with health just behind them. In the ROI, brand is currently the ninth most influential factor in the decision making process, with supermarket

own brands and private label emerging as dominant brands.

Some contrasts in relation to usage by mealtime can also be noted. More consumers in the ROI eat baked goods at breakfast and lunch (71% and 82% respectively) during the week, compared with the UK, where 60% of consumers eat baked goods at breakfast and 78% at lunchtime. Also, 42% of ROI respondents eat baked goods with their dinner or evening meal, while the corresponding figure for the UK is 48%.

Searching For Safe Havens Despite weekend brunch and relaxed treat occasions, there are few “safe havens” to consume bread in people’s daily routine without feeling guilty and overly cautious.

Bread as a category needs to give “permission” to people to eat bread without these feelings of remorse.

Almost half of all ROI shoppers have changed their baked goods category spend in the past 12 months, with roughly equal proportions increasing and decreasing spend. This is a strong indication of the change and shifting patterns of behaviour that are occurring in the category. This volatility can be viewed as both an opportunity and a threat.

Waste is a sizeable consumer issue and one which is likely to grow in importance. The strong driver of concern around waste in ROI is related to the economic loss, while in the UK it is more to do with the social and environmental loss.

A Moving Target The research is also

The Baked Truth

• Bread and morning goods are worth €393m in the ROI. • 71% eat baked goods for breakfast (compared to 60% in the UK).

• 42% of ROI respondents eat baked goods with their dinner or evening meal .

• 82% eat baked goods with their lunch during the week.

• 37% of consumers baked their own bread from scratch in the last year.

• 57% can’t imagine life without bread.

• In the ROI, weekly purchase include: Baguettes (45%) Soda Bread (43%) Wraps (37%) Rolls, buns, baps (26%) Unsliced loves (16%).

• Consumers would pay more for baked goods that are: Freshly baked (60%) Only contain natural ingredients (50%) Contain ingredients with specific health benefits (34%).

showing that the bakery shopper is a moving target.

The same shopper has multiple needs: they want many different baked goods at many different times. For example, at the weekend more experiential, exploratory and sophisticated consumption occasions need to be catered for. Brands need to acknowledge this, build relevant solutions and position them in not only the right locations but at the correct times.

Also, constant innovation and variety is a must: variety-seeking behaviour is strong and likely to be a feature of the category into the future. Brands must have the ability to constantly engage and surprise shoppers to satisfy their needs and inject excitement as an additional benefit, while having an omnipresent and excellent core range which satisfies their core everyday needs.

Bord Bia predict 2% value growth for the category going forward but issues around health and health perceptions of category will severely dent this if they’re not managed properly. Indeed, they feel a disproportionate share of category and future growth is likely to go towards unbranded/own label solutions if relevant solutions and dialogue are not championed by brands.

For more information, see www.bordbia.ie

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Bakery

MORE THAN A BAKER’S DOZEN

BREAD & MORNING GOODS ARE WORTH

€393M

IN THE ROI & GROWING BY 3.7% IN VALUE YEAR ON YEAR

CONSUMERS WOULD PAY MORE FOR BAKED GOODS THAT: ARE FRESHLY BAKED ONLY CONTAIN NATURAL INGREDIENTS CONTAIN INGREDIENTS WITH SPECIFIC HEALTH BENEFITS

41%

60% 50% 34%

(ROI)

35% 29% 28% 25%

71% Eat baked goods for breakfast (60% UK)

want more variety in smaller sized pans on the shelf

CAN’T IMAGINE LIFE WITHOUT BREAD (61% UK)

would like to see flavoured breads would like to see reduced packaging would like snack sized bread to eat on the go

82% 42% of ROI respondents eat baked goods with their dinner or evening meal (48% UK)

are buying more variety of baked goods for the household than they did a year ago (39% UK)

39% of ROI shoppers always buy the same brand (42% UK) But 30% switch from the main brand if another brand is on special offer (33% UK)

57%

WHAT CONSUMERS WANT

37%

OF CONSUMERS BAKED THEIR OWN BREAD AT HOME FROM SCRATCH IN THE LAST YEAR (34% UK)

20%

38%

of people would like new ideas on how to minimise bread waste Other Popular Baked Goods

47% 51% 47% ROI UK PACKAGED SLICED PAN MOST POPULAR BREAD PURCHASED IN ROI (71%) AND UK (73%)

O F S H O P PE R S HAVE CHANGED THEIR BAKED GOODS SPEND IN THE PAST 12 MONTHS

(% purchasing weekly) ROI

UK

Baguettes

45%

34%

Soda Bread

43%

15%

Wraps

37%

29%

Rolls, buns, baps

26%

44%

Unsliced loaves/bloomers

16%

29%

Qualitative and quantitative research was completed in April and May 2014. This information is based upon two Online Surveys and a series of Focus Groups and Super Groups as well as four in store predatory sessions. Market size information is based on information provided by Kantar Worldpanel. Super Groups and Focus Groups were conducted in Dublin, Cork and London. A total of 2,000 Online Surveys of 18+ year old grocery shoppers across the Republic of Ireland and England were completed as part of this research. This research was carried out on our behalf by Ignite Research.

52|Retail News|September 2014|www.retailnews.ie

Branding

Are Pampers and Tide for the Chop?

Big technology-driven changes are ahead for FMCG brands, which could see a vast reduction in the amount of brands on-shelf, writes Martin Crotty, Managing Director, BFK Brand.

AS we all know, Procter & Gamble have a spent many years developing a large portfolio of brands across several leading consumer product categories.

Many of these brands are recognised

category leaders. But many others are much less well known, particularly in developed markets.

• In the Beauty category, P&G’s 36 brands include well-known names

like Clairol, Head & Shoulders, Old Spice and Pantene. They also own lesser-known brands like Ivory and Mexx, and licensed brands such as Hugo Boss and Naomi Campbell.

• Always, Pampers and Tampax are leaders in Baby, Feminine and Family Care but their 10 category brands also include lesser knowns like Tempo, Dodot and Luvs.

•In Fabric and Home Care, P&G’s 35 brands include market leaders Ariel, Bold, Daz, Fairy and Lenor. Less well known are Vizir, Viakal, Era and Rindex.

• A similar story applies in the

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Branding 18-brand Health and Grooming category. We all know Crest, Gillette, Oral-B and Braun but what about Iams, Eukanuba, Align and Metamucil?

Traditional Retail Strategies In building these brands, P&G have focused on traditional retailing strategies. One policy has been to secure as much shelf space as possible, where they feature their leading brands and protect these from competitors by surrounding them with the company’s own niche brands. This tried and tested approach works well in a traditional retailing environment, where the customer goes to the desired category section (household cleaning, for example), reviews the alternatives and selects a familiar mainstream branded product or, possibly, experiments with a lesser-known or new niche brand.

Increasingly, however, purchases in these categories in developed markets are moving online and brand building communications are moving to digital channels, including social media. But online shopping is driven by search, and search requires that you know what you are looking for before you start.

Few online shoppers are prepared to devote precious time to category browsing.

To search, you need to remember and recall the product’s brand name before you can search for it. It is not enough just to recognise the brand when you see it.

The Avalanche Of Marketing Messages Today we are bombarded by an ever-increasing avalanche of marketing messages on TV, outdoor, in print and on digital channels, including Facebook and Twitter. All this verbal and visual noise makes it very difficult for new brands to get noticed, never mind remembered. Well-known and remembered brands do very well in search. The rest disappear. Newcomers

never get their head above the parapet, except in niche markets. The best way to the top online is already to be a best seller!

Many realise that a similar situation applies in the music industry—think Rihanna, Mariah Carey or Beyoncé, who are bigger and higher earning today than ever before. As market leaders, they thrive in the online mainstream but it is almost impossible for new artists to break through the noise to get noticed, except in niche areas.

Just as in the music industry, it is true that online and social media helps niche brands to establish and grow in FMCG, but only in their particular niche. That’s not much good for a major global player like P&G. The Consolidation of Brands At P&G, the world’s largest consumer products company, A. G. Lafley, a former P&G CEO, has come out of retirement to take the helm again. The Wall Street Journal reports that he intends to cut the company’s brand portfolio by up to 100 brands so as to focus on 70 to 80 leading brands. These leading brands generate 90%

of P&G’s $83 billion annual sales and 95% of its profit.

The WSJ suggest that the reason for this brand cull is to make the company “more nimble”. I suggest that the true reason is different. It is the result of technologydriven change and increasing promotional costs in brand building and in retailing.

P&G may be the first US company to take action but others will follow and consumer brand choice will reduce. Does this signal the beginning of a trend?

In Europe, much the same is happening at Unilever, long recognised as P&G’s main competitor.

The Financial Times recently reported Unilever CEO Paul Polman as saying they no longer see Procter & Gamble as their main competitor. Unilever believe that most of their competition, particularly in emerging markets, comes from local niche players: ‘local dynamos’, as Boston Computing Group calls them. The FT reports OC&C, the global strategy consulting firm, as claiming in a recent report that stiff competition from local companies is one reason why sales at the top 50 fast-moving consumer goods companies have fallen in

recent years. Unilever have also begun culling slowgrowing brands, particularly food brands like Wishbone dressings, and reportedly they are planning the disposal of Ragú pasta sauce and Slim-Fast dietary products. I predict that this is just the beginning of the brand cull at Unilever.

The End for Underperforming Brands?

Other brand owners face a similar choice. They must spend a great deal of money on traditional and digital media to make their brands stand out to the degree that consumers will actively search for them online.

Alternatively, they can cut their losses and sell or kill off underperforming brands.

P&G’s Lafley has not declared which brands will be disposed of but it will be the poorer performing ones.

Rest assured that brand leaders like Pampers and Tide will not be disposed of but many lesser P&G brands will be sold off quietly.

Perhaps brand owners are finally listening to The Paradox of Choice author Barry Schwartz, who has long claimed that too much choice overwhelms consumers and can lead to them buying less.

About The Author MARTIN CROTTY is Managing Director of leading brand communications company BFK, where he specialises in strategic brand development and brand communications.

Martin works on brand evaluation, strategy and essence development; naming; and corporate and product brand identity. His clients include manufacturing and service companies, financial and professional services firms, universities, state agencies and government departments.

Martin also conducts brand research, surveys and forecasting, and has been involved in design promotion at national and international level. He has published on brand and design issues and has presented on brand at seminars, conferences, in business schools and at the Design Management Institute, Boston.

54|Retail News|September 2014|www.retailnews.ie

Music Use In-Store

Striking the Right Note with Customers If you play music in your store via radio, TV etc, you need an IMRO licence, according to Brendan Griffin, Director of Licensing, IMRO. IF you are playing music in your store, you need a licence from IMRO (Irish Music Rights Organisation) to do so. Just like any other input into your business, the use of musical compositions has to be paid for.

When you use copyright music in your business, you must first obtain permission from the copyright owners to do so. You do this by obtaining and paying for an IMRO licence.

“It is a legal requirement,” explains Brendan Griffin, Director of Licensing, IMRO. “If you perform copyrighted music in public, and that copyrighted music is within IMRO’s repertoire, you need a licence from the copyright owner to perform that music.”

IMRO is a national organisation that administers the performing right in copyright music in Ireland on behalf of its members - songwriters, composers and music publishers and on behalf of the songwriters, composers and music publishers of the international overseas societies that are affiliated to it. IMRO’s function is to collect and distribute royalties arising from the public performance of copyright music.

IMRO exists to help businesses and community groups to legally access the worldwide repertoire of music in a cost effective and efficient manner, while making sure that songwriters, composers and music publishers are rightly rewarded for the public use of their music.

Music Adds Value “If you want to use music in your business, you are using it for a reason: that reason is because it adds value to your business,” Brendan notes.

“It hopefully will help you to obtain customers and as importantly, retain them. It is just like any other aspect of your store, from the façade at the front, the ambience inside or the product offering on the shelf: all are geared towards bringing customers through the doors to purchase your products or services and hopefully retaining them as customers. Music can help you to do

Brendan Griffin, Director of Licensing, IMRO.

that and an IMRO licence ensures that you get access to the best repertoire in the world, with every major songwriter and every major song composed, 365 days a year.”

So how much does it cost?

The licence fee for retail premises varies, depending on the size of the store. Brendan explains, “For a store that is 100 square metres, the fee is €144 for the second year of the licence onwards – the first year’s fee is 50% higher – which is less than 40c per day. As the store size increases, so

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Music Use In-Store sectors of the Irish economy are struggling. We’re all aware of the amount of retail businesses who have closed. If you walk down any main street around the country, you can see vacant units, so we have lost that business. Hopefully, these retailers will come back as the economy turns.”

does the fee. For a store that is 500 square metres, the cost is €358 per annum in the second year, and a 1000 square metre store would expect to pay €498.

However, if a premises just has a transistor radio on the counter, regardless of store size, the cost is €95 per year.” All prices quoted exclude VAT. All the money collected goes to the songwriters, composers and music publishers, once IMRO has deducted its administration costs, which are approximately 13% of royalties collected. “So 87% of the money goes back to the songwriters. The way we do that is by using logs

from radio stations, who are required to tell us all the music they play, alongside the charts, which let us know what music is popular in a particular year,” Brendan notes. “We use these criteria to determine which songwriters get the money.”

IMRO also regularly run songwriting workshops at their premises and encourage and foster upand-coming songwriters and artists to perform in venues throughout Ireland.

Some retailers will argue that if they are playing their own CDs, which they bought, they should not have to pay a licence fee. This, however, is not the case.

The Power of Song • 90% of people would select a shop that was playing music over one that was not.

• 60% of customers agree they would spend more time in a shop if they hear music they like.

• 55% would be more likely to return to a store that plays music they like.

• 23% would be prepared to pay 5% more for goods if music was being played while they shopped.

• 84% of shoppers like shops that play in-store music.

• 63% agree that playing music encourages customers to spend longer in-store.

• 79% say music helps create a better atmosphere for customers.

(Source: www.musicworksforyou.com)

“If you are performing music in public, which is anywhere outside the home, the owner of that song (the songwriter) is entitled to be recognised and recompensed for their creative endeavours,” Brendan notes.

“If you look at the small print on a CD, for example, you will see that the CD is sold for use in a private or domestic setting and not for public performance.”

The Fee Structure Given the straitened nature of our economy and the pressures on businesses, particularly those in the retail sector, who have seen margins squeezed relentlessly, many retailers argue that there are too many licences needed to operate in Ireland and that the cost of these licences is disproportionately high. Have IMRO looked at their fee structure, given the difficult trading environment?

“All our fees are linked to inflation,” Brendan says, “so when we had deflation a few years back, our fees fell. Inflation is very small at the moment, so our fee increases will be minimal.

We are very aware that all

Reducing the Administrative Burden When it comes to music, a store must have an IMRO licence and also a licence from the PPI (Phonographic Performance Ireland), who represent the owners of the recordings (i.e. the record companies). IMRO are part of the steering group of licensing authorities established by former Minister of State for Small Business John Perry TD, which aims to rationalise the amount of licences retail outlets need to operate in Ireland.

“We are delighted to contribute to that system, to reduce the administrative burden on retailers,” Brendan explains. “If we can help in that regard, we will do so.”

The Director of Licensing concludes by stressing the value of music to a store owner: “Music can help to retain customers in a store for longer, so they are browsing for longer and thus, it increases potential sales. There is no doubt that music brings value to the owner of the premises.

If it brings value, there is a value to it, and that is why we represent songwriters in a fair, transparent and reasonably priced manner.

Have a look at the voxpops on our website at www.imro.ie and hear how some of our customers use music to help them drive their business.”

IF you have any query regarding your need to hold an IMRO licence, please contact the IMRO Licensing Department at (01) 6614844, email licensing@imro.ie or see www.imro.ie/music-users/.

56|Retail News|September 2014|www.retailnews.ie

On The Vine

Australia Vs Chile Jean Smullen reports on the battle of the New World wine heavyweights: Australia and Chile.

THE big news story this year from a country of origin perspective is that Chile overtook Australia in volume terms in May 2014 on an MAT basis.

For the quarter to May 18, 2014, MAT figures for the retail sector showed Chilean wine sales overtaking Australia by a few thousand cases. The retail wine market in Ireland to May 18 (for a 12-week period) delivered €89m in value sales, amounting to growth of +2.2%, and volume sales of 7.8m litres, declining by -3.2% (Source: Nielsen Scantrack May 2014).

Australia, the dominant player in volume terms for the last 15 years, is now slipping because of the strong Australian dollar, which is pushing up ex-cellar prices. In 2011, Australia had 26% of the Irish market and Chile had 21%. By December 2012, Country of Origin figures for the total market show Australia dropping to 24% and Chile at 21%: both countries now account for 45% of all wine sales on the Irish market, an indication of their importance here (Source: Irish Wine Association, July 2013).

The most recent MAT figures has Australia’s market share of the retail sector at 19.5%, with volume sales for the period showing a decline of -0.7% on

the previous year. For the same period, Chile stands at 18% with volume sales increasing by +5.1%. The current picture to July 2014 indicates that the value of the Irish retail wine market is up 9.2%, a result of the increase in excise duty, with volume sales at +1.2%. The average retail price for a bottle of wine is now €7.72 (Source: Nielsen Scantrack July 2014).

Historical Perspective Let us put the race for top position between Chile and Australia in a little more perspective. Historically, in the years 1990 to 2004, there was a dramatic increase in the popularity of New World wines, with sales rising from 6% of the total market in 1990 to 75% by 2004. This growth was driven by the sale of wines brands from Australia, Chile, South Africa, the United States and New Zealand (Source: Irish Wine Association, July 2013).

One of the factors driving the current success of Chile as the leading country of origin is the sales growth for one of the key Chilean wine brands, Santa Rita. Terry Pennington, Regional Export Director of Santa Rita Estates, told me that the wine brand market has changed quite significantly in recent months. The

Nielsen report to July 2014 shows that for the first time, a wine brand from Chile (Santa Rita) is now number one in both the on and off trade.

Global figures for the sales of bottled wine from Chile on an MAT basis to June 2014 reiterate this. Ireland is now the 10th most important global market for Chilean wine overall, with sales of 688,245 cases recorded to June 2014.

Ireland is now the second European country where Chile has achieved a number one position, the other being Finland, currently in 15th position globally with sales of 458,195 cases (Source: Wines of Chile, June 2014).

Ireland is clearly a key market for Chilean wine producers and once again has become a focus for generic support from Wines of Chile. Their Chilean Wine Fair this month was the first since 2009.

Wine Australia, the generic body representing Australian producers, also continues to support this market on an on-going basis. The Wine Australia wine fair in June 2014 was well attended and the next Wine Australia wine fair will take place on January 29, 2015, in Dublin.

Here is a list of some mainstream and premium wines from Chile and Australia to look out for:

CHILE

Santa Rita Estates (C&C Gleeson) Santa Rita Estates includes the Santa Rita varietal range as well as their premium wines, including Medalla Real. The group also produces the

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On The Vine Vina Carmen range and the organically produced Nativia. Contact Michael Taylor of Santa Rita Estates (mtaylor@ santarita.cl) or Des King of C&C Gleeson (desking@ gleesongroup. ie). Their European Regional Export Director is Terry Pennington (tpennington@ Santa Rita 120: a santarita.cl). real winner with Irish Santa Rita is consumers. now the number one selling wine brand on the Irish market.

Vina San Pedro (VSPT wine group) (Cassidy Wines) It’s great to see a Chilean producer making Dublin their European headquarters again. Errazuriz and De Martino started this trend a decade ago. VSPT group have installed Jorge Smith, their Export Manager, in Dublin.

The group distributes a range of key wine brands on the Irish market. They include the 35 South and Castillo de Molina range, distributed in Ireland by by Cassidy Wines: contact Amanda Cardiff (Amanda.Cardiff@cassidywines. com) for more information. They also have the excellent Santa Helena and Misiones de Rengo range, which is exclusive to BWG, and Vina Leyda, Casa Rivas and Tarapaca. For more information, contact Jorge Smith Export Manager VSPT group (jsmith@vspt.cl).

Montes (Liberty Wines) Montes, once one of the flagship Chilean wines on this market with a fine reputation for premium wines such as the Alpha range, has had a long association with the Irish market.

After a few years of moving around the houses, they have finally taken up with a new Irish distributor, Liberty Wines (Ireland). One of the first Chilean wineries to make a significant impact on the Irish market. Contact Ben Reynolds for more information (ben.reynolds@libertywine.ie).

(willie@ampersandsales.ie).

Concha y Toro (Richmond Marketing) Outside Ireland, the wines of Concha y Toro hold the number one position in most markets. Ireland is the notable exception to that. The Casillero del Diablo range is supported in the UK market by a strong television advertising campaign and sponsorship of a range of popular UK television programmes. Here in Ireland in recent years, the brand moved to Richmond Marketing, where it has been showing steady growth in terms of sales in the supermarket sector. With Casillero del Diablo currently showing strong growth in both volume and value sales, this is another Chilean brand currently driving growth. For more information, contact Jenny Corkery, Brand Manager, Richmond Marketing (jennycorkery@richmondmarketing.com).

Cono Sur (Findlater Wine & Spirit Group) Cono Sur, another key range owned

by Concha y Toro, is distributed in Ireland by Findlater Wine & Spirit Group. Their midpriced organically produced Bicylette range performs very well here. For more information contact Brand Manager, Michelle O’Sullivan (mosullivan@ findlaterws.ie).

Cono Sur Brut: a new world

Luis Felipe sparkling wine that’s extremely popular Edwards (10 with Irish wine International) drinkers.

Another strong performer in the retail sector, especially for its varietal range; LFE is a family run estate based in Colghagua Valley with a strong presence and a growing following. Their entry level wines perform well here and are also showing strong growth in terms of sales. Contact Jim O’Sullivan of 10 International for more information (jim@10internationalireland.com).

AUSTRALIA

Hardy’s (Barry & Fitzwilliam) One of the top selling Australian wines on this market, current strong growth is driven by the multiples. Performing particularly well with a triple figure increase in sales for the first six months of this year, the historic Hardy’s is the most powerful Australian wine brand in the world. Contact Kevin O’Mahony of Barry & Fitzwilliam

Vina Santa Carolina (Ampersand) Another strong Chilean brand to perform well on this market, Santa Carolina has a very strong varietal range that sells at a good entry level price; typifying what makes Chile so successful here.

The Hardy’s Crest Range: available at a promotional Contact Willie Dardis price offering this summer.

for more information (kevin.omahony@bandf.ie).

D’Arenberg (Febvre & Co.) Established in 1912, d’Arenberg is one of Australia’s most colourful wineries.

It has a reputation for using traditional methods in the vineyard and winery to create distinctive and dynamic wines.

Their range is a good example of midpriced Australian wine and performs well in the independent sector. Contact Kerri Judge for more information (kjudge@febvre.ie).

Peter Lehmann (Comans Wines) Peter Lehmann Wines has developed a reputation as one of Australia’s most respected, premium wine producers, twice awarded the International Winemaker of the Year, and three times awarded Best Australian Producer at the IWSC. Every vintage, over 160 growers supply their fruit from over 900 of the best vineyards. Their wines perform strongly in both the multiple and independent sector. Contact Redmond Gavin for more information (redmondgavin@comans.ie).

Wakefield (Dalcassian Wine & Spirits) Wakefield Wines is 100% family owned and operated. Family defines their approach to winemaking and to their business. The wines from Clare Valley reflect the diversity of the regionalisation of Australian wine.

Operating primarily in the mid-priced and premium sector, they can be found mostly the on trade and independent off licence sector. Contact John Dillon for more information (jdillon@dalcassianwines.com).

Penfolds (Findlater Wine & Spirit Group) The epitome of all that is classy from the premium sector in Australia, the Penfolds name speaks volumes.

For more information, contact Brand Manager, Michelle O’Sullivan (mosullivan@findlaterws.ie).

Yalumba (Cassidy Wines) Yalumba was founded in 1849 by Samuel Smith, British migrant and English brewer, who had brought his family to Angaston seeking a new life.

After purchasing a 30-acre parcel of land just beyond the southern-eastern boundary of Angaston, Smith and his son began planting the first vines by moonlight. Samuel named his patch Yalumba, aboriginal for “all the land around”. Five generations and 165 years later, Yalumba, Australia’s oldest family owned winery, has grown in size and stature, embodying all that has made the Australian wine success story the envy of winemakers the world over.

Contact Amanda Cardiff (Amanda.Cardiff@cassidywines.com).

58|Retail News|September 2014|www.retailnews.ie

Legal Matters

A Level Playing Field For Online Sales New EU legislation means no more extra charges for paying with credit cards online and no more traders saying that purchasers can’t return goods bought online, write Jennifer Heffernan and Michael Nuding of Denis I. Finn Solicitors.

NEW EU legislation will bolster consumer rights throughout the European Union. The new EU Consumer Rights Directive, which has now entered into force, strengthens consumers’ rights wherever and whenever they shop in Europe – online or on the high street.

Businesses will also benefit from these new rules, which create a levelplaying field, making it less costly for traders to offer their products and services to consumers across borders.

The new rules will, for example, ensure that EU-wide, consumers have 14 days to change their minds and pull out of any online purchase or offpremises purchase (when a seller visits the consumer’s home) – up from the previous minimum of seven days.

Credit Cards & Online The new rules also ban surcharges for the use of credit cards and hotlines, as

well as pre-ticked boxes on websites for charging additional payments (for example when buying plane tickets online). To make sure these new rules are applied in a uniform manner across the EU, so that consumers benefit from them no matter in which Member State they are, the European Commission is also publishing a guidance document for national authorities, including an optional model for essential consumer information to be displayed on digital products.

The new Consumer Rights Directive harmonises national consumer rules in several important areas, such as the information consumers need before they purchase goods and services, and their right to cancel online purchases.

Increased harmonisation means that consumers can now rely on the same rights, no matter where they shop in the EU. It also means simpler, more predictable rules for traders, who will

now have more incentives to expand their business across borders.

Under the new EU rules consumers get: • Enhanced price transparency; • The end of unjustified surcharges for the use of credit cards and hotlines; • A ban on pre-ticked boxes on the intenet, as for example when they buy plane tickets;

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Legal Matters

• An extension of the period to change their minds from 7 days to a uniform 14 days across the EU; • Stronger refund rights, within 14 days of the consumer’s cancellation of a purchase; • Rules banning online traps, like offers on the internet that advertise something as free when in reality it is not (for example, horoscopes or recipes); • Better protection in relation to digital content, especially regarding information on the software and hardware the products work with.

The new law became operative from June 14 this year.

How do the new rules help shoppers?

• No more cost-traps on the internet. From now on, online shoppers need to confirm that they accept paying for something before they are charged. It must be clearly indicated what is included in the price you are paying.

• No more pre-ticked boxes. Currently consumers shopping online may end up paying for services they don’t want (such as priority boarding on planes) because they forget to un-tick boxes on websites. The new Consumer Rights

Directive introduces a clear ban on pre-ticked boxes on websites for charging additional payments.

• Online shoppers will not have to pay for any charges of which they are not clearly informed before they make a purchase.

• Traders will not be allowed to charge more for credit card payments than it costs them to provide such a payment option.

• Traders operating hotlines for consumer complaints or questions will not be able to charge more than the basic rate for such calls.

Refunds for Change of Mind The period for consumers to pull out of any distance purchase (e.g. something bought online) or off-

premises purchase (such as when a seller visits the consumer’s home) is extended from the previous minimum seven days, to a uniform 14 days across the EU. These 14 days start counting from the day the consumer receives the goods, and the consumer has the right to cancel the purchase for any reason. When a seller hasn’t clearly informed the consumer about the right to cancel the purchases, the return period will be extended to a year.

Consumers will now also be allowed to pull out from purchases after solicited visits from sellers and from online auction purchases from professional sellers.

Traders must refund consumers within 14 days of cancellation, including standard delivery costs.

Regarding goods, the trader can postpone the

reimbursement until the goods are returned by the consumer or the consumer provides evidence that these goods have been sent to the trader.

Consumers will be given a standard EU form to use if they want to cancel their purchases. This will make it easier for them to get out of contracts concluded outside of their home country.

Traders wanting consumers to pay for the return of goods after cancellation must clearly inform them beforehand, and give at least an estimate of the cost for returning bulky goods.

Implications for businesses?

Common rules for businesses will make it easier to trade all over Europe. Businesses making sales by phone, mail or online, or away from their premises, will now have a single set of rules to follow.

This creates a level-playing field and cuts cross-border transaction costs.

As regards small businesses and craftsmen, there will be no right to pull out of a contract for urgent repairs and maintenance jobs. Member States can also exempt traders doing repairs or maintenance jobs in customers’ homes for less than €200 from certain information requirements.

About the Authors THIS article was written

by Jennifer Heffernan and Michael Nuding of Denis I. Finn Solicitors, 5 Lower Hatch Street, Dublin 2 (pictured). Dennis I. Finn is a full services law firm, committed to delivering legal excellence for over 35 years.

With 24 employees, deep industry experience and a proven track record, Denis I. Finn offers legal services to private, corporate and institutional clients. For more information, see www.denisifinn.ie.

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Drinks News CORONA SAILS AHEAD WITH SPONSORSHIP CORONA Extra is delighted to announce that it is the new sponsor of Irish sailors Graeme Grant, Ronan Downing and Tara Flood and ‘Corona Extra’ will help take the team to Lake Garda in Italy for the 2015 SB20 Worlds.

Ten Irish boats are now expected to travel to the Worlds in Italy next July.

Michael Barry, MD, Barry & Fitzwilliam, who market Corona Extra in Ireland, said of the sponsorship, “I am delighted to be sponsoring one of the top sail racing teams in the country and I look forward to a successful season afloat for ‘Corona Extra’. Our sponsorship is a boost to a top team heading for the World Championship next year and it is a sign of the recovering economy that Corporate Ireland is investing in Irish sailors and Irish sailing again.”

Guinness Amplifies Musician’s Journey AS part of the Guinness Amplify campaign, Guinness has released an online film which focuses on the journey of the musician, entitled The Artist’s Journey. The film tells the story of artists who have taken the creative plunge, facing daily obstacles and struggles in an attempt to make their dreams a reality. The film was co-produced by the Guinness Western Europe and Guinness Global Brand teams and features a number of bands and musicians, including Irish indie sensations And So I Watch You From Afar and Londonbased Irish musician, Wife. The voiceover for the film was recorded by Irish actor, Liam Cunningham (Game of Thrones). “The Artist’s Journey is a celebration of the tenacity and creative bravery demonstrated by emerging musicians as they work at their craft in an effort to progress their music careers,” said Lisa Fitzsimons, Marketing Manager on Guinness. “We’ve experienced first-hand the abundance of music talent in Ireland and we are delighted to be in the position to give support to as many of these musicians as possible through the Guinness Amplify campaign.” See www.guinnessamplify.com for more information.

7UP BALLOON STREET 7UP Free recently launched 7UP Balloon Street on Coppinger Row in Dublin city centre, where passers-by were able to enjoy the vibrant, colourful installation of hot air balloons in green, yellow, white and red. The street was covered over in the colourful balloons from August 2-8, as part of 7UP Free’s wider Refreshingly Original campaign, which kicked off with the launch of a limited edition for 7UP Free titled Tropical Splash. As part of the Refreshingly Original campaign, 7UP Free is currently displaying a wide range of Out Of Home advertising which heroes local landmarks such as the Pigeon Towers, Stephen’s Green water fountain and Powerscourt waterfall. For more information on 7UP Free, see www.facebook.com/7UpFreeIreland.

BLACK DONKEY BREWING LAUNCHES SHEEP STEALER FARMHOUSE ALE ROSCOMMON based craft brewers, Black Donkey Brewing have officially launched Sheep Stealer Irish Farmhouse Ale - their first offering to the market. Named for the legendary sheep stealers of county Roscommon, where it is brewed, Sheep Stealer Farmhouse Ale or Saison, is a beer more typically associated with Belgian and French brewers. Located in the quiet farming village of Ballinlough, Black Donkey Brewing is the brainchild of Richard Siberry and Michaela Dillon, a husband and wife team who returned to Ireland in 2012 after 20 years in New York.

JAMESON GROWS AGAIN BUT IDPR CHIEF WARNS OF FUTURE OF DOMESTIC MARKET THE Financial Year 2013/2014 proved to be another successful one for Irish Distillers Pernod Ricard internationally with the acceleration of the global development of Jameson Irish Whiskey, with the brand reaching its 25th year of consecutive growth, making it the most dynamic premium spirits segment globally.

Jameson sales volumes reached 4.7m cases for FY 2013/2014, with volume growth up +9% for the year, and value growth of +12%, confirming the premium nature of this iconic brand. In Ireland, however, the total spirits market has declined by 11.5% for the six months ending June 2014. “The penal excise increases on alcohol accumulated in the last two budgets endanger the export success of indigenous products such as Irish whiskey, as well as the 92,000 jobs being supported by the drinks industry in every county throughout Ireland,” warned Anna Malmhake, Chairman and CEO, Irish Distillers Pernod Ricard (pictured). “In fact, Ireland is one of the most expensive places in the world to buy Irish whiskey, with the €17.37 tax take on a bottle of Jameson in Ireland working out more than the total price €16.61 of that same bottle in New York.

How sustainable is the current international growth of Irish whiskey without a solid local market in which to support home grown brands as well as new market entrants?”

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Market news DOVE LAUNCHES LARGER HAIR THERAPY PACKS DOVE is extending the core of its Hair Therapy range, which is comprised of the Intensive Repair, Colour Care, Nourishing Oil Care and Daily Moisture ranges, to include larger pack sizes, offering consumers increased value for money and boosting shelf impression for retailers. Available now, the new Dove Hair Therapy 400ml shampoo and 350ml conditioning variants join the existing smaller 250ml and 200ml formats. The larger packs offer consumers better value for money with an RRP of €4.69. The new sizes carry added benefits for retailers, including greater shelf impression owing to the products’ increased size and new ‘bigger size’ sticker, which features on each pack.

PAMPER YOUR PROFITS

FLAHAVAN’S LAUNCH GRANOLA

DOVE is extending its successful Purely Pampering range with the introduction of its first- ever range of body oils, Dove Purely Pampering Nourishing Body Oils, supported by a heavyweight media spend. Available in two luxurious scents, Pistachio Cream & Magnolia and Shea Butter & Warm Vanilla, each variant contains the brand’s unique DeepCare Complex formula, designed to create a soft protective barrier over the skin.

Packed with nurturing ingredients, which leaves skin feeling sensuously smooth and deeply nourished, the premium range is designed to transform daily skincare routines with a decadent ‘me-time’ experience.

FLAHAVAN’S are delighted to announce the launch of their new Original Granola, a deliciously indulgent toasted wholegrain oat granola, combining fruit, nuts, seeds and the finest Irish Flahavan’s oats. Consumers can enjoy as a cereal, a snack or as a topping on yogurt, ice cream, fruit or porridge. Flahavan’s Original Granola comes in an easy-open 450g pack, that’s resealable for lasting freshness, and contains Flahavans Irish porridge oats. Its great taste and flavour is down to using the finest quality ingredients, with no additives or preservatives. For the trade, it comes in a small case size, with six packs per case, in shelf-ready packaging.

OCEAN SPRAY GETS TROPICAL OCEAN Spray is set to deliver two exciting new juice drinks to consumers in Ireland, with the introduction of Ocean Spray Cranberry & Mango juice drink and an innovative new calorie reduced juice drink, which combines the great taste of cranberry with the tropics: Ocean Spray 50% Less Sugar Tropical & Cranberry juice drink. Ocean Spray 50% Less Sugar Tropical & Cranberry juice drink mixes cranberry, pineapple, passion fruit, apple and mango and is available in a 1 litre carton.

These are the first of a number of exciting NPD streams set to be unveiled within the next few months, signalling the brand’s continued commitment to meeting the needs of the Irish market. All trade enquiries to Robert Roberts. Telephone: (01) 4047300.

NEW JACOB’S CRISPBREADS JACOB’S new Crispbreads are perfect for an on-the-go snack, with handy individually wrapped portion packs of four. With over a third of Irish working women saying lunchtime is the highlight of their working day, Jacob’s Crispbreads are the ideal lunch solution for those who want a healthy lifestyle but want a balance between being good and enjoying themselves! The oven-baked Crispbreads are a good source of fibre, have no artificial colours or flavours, are suitable for vegetarians and available in two delicious varieties, original and sesame, both priced at €1.79. Jacob’s Crispbreads are encouraging Irish women to embrace a more balanced attitude to eating, by sharing their ‘Real Me Moments’ on Jacob’s Twitter page: #RealMeMoments @Crispbreads

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Shelf Life JOHN Player has appointed Peter Lassche as the new Market Manager for John Player. Peter and his family have moved to Dublin from Bristol, where he worked as Head of Insights and Business Planning for the UK arm of Imperial, which is the largest market in the Imperial Group. Previous to that, Peter worked in the Dutch market as Marketing Manager. “I am really looking forward to working in a very challenging market,” he said. “A key concern is the large volumes of tobacco that is smoked in Ireland but simply not bought in an Irish shop. This takes footfall away from rate paying retailers and reduces revenues for legitimate suppliers and of course, the Government, who take 78% of the price of every pack of John Player Blue in excise and VAT.” THE expansion of new food-to-go franchise Nom Nom Subs is continuing at pace with the opening of a new store at Texaco, Lucan. The Nom Nom Subs franchise was created by Complete Cuisine and this particular development, positioned in a key location, is the first integrated model using both the Complete Cuisine and Nom Nom Subs brands. Vincent Callan, of Texaco, Lucan, decided to embrace the new Irish Franchise following the successful opening of its first store on Westland Row in Dublin. Dermot Hanrahan, Director of Nom Nom Subs has plans for further store openings and the company is on track to have five additional openings by the end of 2014, with a further franchisee investment of more than €400,000. Pictured at the Lucan store are (l-r): Dermot Hanrahan, Director of Nom Nom Subs, Dalia Norkuniene, Texaco Lucan, and Vincent Callan, Nom Nom Subs franchisee, joined by special guest Nom Nom the bear.

THE Irish Foodservice Suppliers Alliance (IFSA) has revealed that almost 60% of stand space is already booked for CATEX 2015. Celebrating its 50th anniversary, CATEX 2015 will take place at the RDS, Dublin on February 17-19, 2015.

Sponsored once again

by Bunzl and Calor, CATEX 2015 promises to be bigger and better than ever. With more than 10,000 visitors anticipated to visit the RDS for the 15,000m jubilee show, the industry’s leading suppliers, operators and stakeholders will gather to promote products, exchange ideas, compete in chef, barista and cocktail championships, identify emerging and future trends, and inspire service excellence. Pictured are (l-r): Sean Martin, Bunzl Ireland and Chairman of the IFSA, and Larry Smith, Calor Gas. KELLOGG Company have announced new social and environmental commitments that will enrich the lives of consumers and farmers, while supporting the environment. The company has committed to responsibly source its top 10 ingredients and materials by 2020, and validate compliance across all direct suppliers by 2015. In terms of conserving natural resources, the company’s commitments include further reducing energy and GHG emissions by an additional 15% (per metric tonne of food produced) from 2015 performance, while also expanding the use of low-carbon energy in plants by 50% by 2020.

Brockmans Gin has announced the appointment of MCM Spirits & Liqueurs Ltd as distributor for the Republic of Ireland. MCM will be handling on-premise sales, primarily introducing Brockmans Gin to premium bars, restaurants and hotels, as well as off-premise sales.

The announcement coincides with the introduction of Brockmans’ new bottle design, which has all the hallmarks of a super-premium product. Brockmans is a 40% ABV gin made in the heart of England, distilled using quality botanicals and berries from around the world.

Brockmans has increased its sales worldwide by 30% in the first half of 2014, compared with the same period last year. William Doogan, Managing Director of MCM, said, “Brockmans Gin truly is different and is a great addition to our existing portfolio. I’m delighted that we have been selected to take the brand into Ireland.” See www.brockmansgin.com or www.mcmspirits.com for more information.

CONSUMERS can be the pride of their county with handy GAA party packs from www.partypacks.ie. This new range is comprised of eight paper plates, eight paper cups & 16 paper napkins in GAA county colours, with an RRP of €2.99 per item.

IRELAND’S newest visitor attraction, Smithwick’s Experience Kilkenny, has already captured the imagination since opening its doors to the public on July 31. At the official opening, the brewery went back in time to the year 1231 to witness the medieval origins of brewing on the site of the Abbey of St. Francis, where three Franciscan monks (played by actors) brought to life the history of Smithwick’s in Kilkenny. An imposing life-size holographic monk narrated this part of the Smithwick’s story, before visitors were brought forward in time to the arrival of John Smithwick in the 1700’s and the right up to the present day. Located in the old Victorian brewing building on Parliament Street in Kilkenny City, this €3.5m multi-sensory and interactive experience immerses visitors in the history of Smithwick’s, Ireland’s oldest beer brand, the amazing heritage of the Smithwick’s family and its place in Kilkenny, a city steeped in history and brewing tradition.

NEW! KittenSoft now has a bigger and Softer family.

Following in the pawprints of our adorably soft paper, KittenSoft is now available in two new varieties.

New luxuriously soft 4 ply Quilted Dreams and a new beautifully enriched 3 ply Aloe Vera.

Simply purrrfect!