Retail News December 2007

50 50

December 2007

CELEBRATING

SUCCESSFUL YEARS

RN December07Contents ● www.ism-cologne.com

■ inside view International Sweets and Biscuits Fair

Merry Christmas I’d like to take this opportunity to wish each and every one of our readers a very Merry Christmas and a happy, peaceful and profitable new year, on behalf of myself and all the staff at RETAIL NEWS. I also want to say a big thank you to the suppliers, symbol groups and all the advertisers who supported RETAIL NEWS during the course of 2007, as Ireland’s longest running retail grocery magazine celebrated its 50th anniversary.

Without your support, we would be unable to continue producing the quality editorial content which RETAIL NEWS delivers every month and your business is greatly appreciated.

In many ways, 2007 was a tough year for the retail trade in Ireland, with ever-tightening margins, increasing overheads and a wealth of new legislation impacting on the sector. The bad weather for almost the entire summer didn’t help matters, as half the country seemed to up sticks and fly to sunnier climes over the course of the summer. Despite this difficult trading environment, however, Ireland’s grocery trade remains arguably the most dynamic in Europe, with every small town, from Malin Head to Mizen Head, served by at least one quality grocery outlet. It is a testament to everybody working in the sector, from distributors and suppliers to wholesalers and retailers themselves, that our grocery trade remains second to none, serving the needs of local communities throughout the country.

In this issue, we look at this most dynamic of sectors over the course of 2007 (Page 14), highlighting the performances of the main players and the big issues of the year, while also looking forward to the challenges and opportunities that 2008 will bring.

Please note that instead of sending Christmas cards this year, RETAIL NEWS is making a donation to charity.

ISM – THE FUTURE OF SWEETS The world’s leading trade fair for the confectionery industry

Cologne, 27 th – 30 th January 2008

The best thing about ISM ?

All of it !

All the confectionery – from all over the world.

All of the relevant exhibitors from all the sectors – cocoa, chocolate, chocolate products, biscuits, snack products, sugar confectionery, ice cream and marzipan products. All of the trends. All the new products. All organic – a special feature show.

All at ISM, the world’s largest and most important trade show for the confectionery industry.

All at Cologne from 27th to 30th January.

More information?

No problem!

“Celebrating 50 Kathleen Belton, Editorial & Marketing Director.

years serving the Irish grocery trade.”

Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com Editor: John Walshe

johnwalshe@tarapublishingco.com

Chief News Reporter: Pavel Barter

Wine Correspondent: Jean Smullen

Financial Correspondent: Carmel Linnane

Advertising Manager: Aaron Stewart

Tel. +44 (0) 20 8681 8166 Fax +44 (0) 20 8681 8028 info@koelnmesse.co.uk The quickest way to ISM – our e-shop !

Save time when you arrive by buying your ticket on-line at www.ism-cologne.com

Advertising Executive: Caoimhe St. John, Rory O’Connor.

T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

Tel: (01) 2413095. Fax: (01) 2413010. ISDN: 01 2413050 Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Subscription to Retail News: €110 plus VAT Email: simone@tarapublishingco.com Origination by: Rooney Media Graphics

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Don’t forget to recycle your used packaging this Christmas.

We can all do more to make this an even greener Repak Green Christmas. Put beverage cartons and plastic bottles into your green bin, as well as used cardboard, paper, food & drink cans. Bring your glass to your local recycling facility. If a bring bank is full, don't leave materials on the ground, use your nearest alternative site or come back another day. Find your nearest Green Christmas Recycling Centre at www.repak.ie

Repak and Race Against Waste working together for a better Environment. www.repak.ie

RN December07Contents ●

Contents 50 50

December 2007

51 CELEBRATING

SUCCESSFUL YEARS

News 4 Consumer Protection Act

14

Comes Under Fire; Beamish & Crawford Welcome Budget.

Barristers has the potential to save Off Licence holders thousands of euro when it comes to legal fees, according to Barrister at Law, Cormac O Neill.

5 Irish Food Industry to be Worth €15bn by 2020; CSNA Fury at Cigarette Price Hike.

6 World Food Forum Held in Dublin; Michael Barry Named Cork Business Person of the Year.

6Tesco Worth €2.5bn to Irish Economy; Ireland’s Appetite for Eating Out Grows.

8 Ten Trends to Watch in Packaged Goods in 2008.

2007 – The Year in Retail 14 RETAIL NEWStalks to all the major players in Irish retail about the year that was.

IGBF Christmas Lunch 20 The IGBF Annual Christmas Lunch proved a tremendous success, raising much-needed funds for this worthwhile charity.

The Law and Off Licences 30 Direct Access to

Shop Profile 24 Brothers John and Eddie Glennon’s new EUROSPAR supermarket in Santry is a stunning example of the Group’s latest image.

Gala Annual Conference 26 Gala’s Annual Conference saw the convenience group reveal a new idendity, as well as announcing plans for 35 new Gala stores and the creation of 400 jobs in 2008, Gala’s tenth anniversary.

The Retail News Interview 28 Michael Barry, Managing Director of Barry Fitzwilliam Maxxium, talks to RETAIL NEWS about his company’s dramatic rise in fortunes over their 25 years in business.

Costcutter Conference 34 The recent Costcutter Annual Conference saw the Barry Group reporting a combined turnover of €632m in 2007, while opening 36 new Costcutter stores during 2007.

Music Licencing 51 A Copyright Music Licence is required for any public performance of copyright music, including use of radios, CD players, tape recorders or televisions in your store.

FBD CREST Retail Excellence Awards 54 The annual FBD CREST Retail Excellence Awards took place recently, attended by over 260 leading Irish retailers.

Karen Meenan’s Top Tips 56 Retail Consultant Karen Meenan asks 10 questions to see how much you learned from her Top Tips series of articles throughout 2007.

Money Matters 60 Carmel Linnane provides some telling advice on what action to take if a cash flow crisis effects your business.

Regulars 10 Industry News 22 Drinks News 63 Update 64 What’s New Sectoral Reports 36 Breakfast Time 42 Cereals 46 Value Added Services

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RN December07News ●

Consumer Protection Act Comes Under Fire AN unintended consequence of the Consumer Protection Act could be to ban retailers from giving discounts to customers who pay by cash, Torlach Denihan, Director of Retail Ireland, has told RETAIL NEWS. Sections 48 and 49 of the Act, which have yet to be activated, were intended to prevent companies forcing customers from paying by direct debit, but “an unintended consequence would be to prohibit a retailer from giving a discount to consumers if they pay by cash. This legislation was not thought out as well as the rest of the Act, as there are literally billions of payments in the Irish economy every year.”

The Sections were instigated after a cable company allegedly steered its customers toward direct debits, imposing an extra charge on people who decided to pay in cash. The subsequent controversy led to the creation of the Consumer Credit Act, which gave a statutory basis to the National

Torlach Denihan, Director of Retail Ireland.

Consumer Agency, and transposed the Unfair Commercial Practice directive into Irish law.

Shortly thereafter, a Fianna Fáil

Beamish & Crawford Welcome Budget ALF Smiddy, Chairman of The Irish Brewers Association and Managing Director, Beamish & Crawford, has broadly welcomed the recent budget.

“This was a very balanced budget by Minister Cowan and I am pleased that there were no knee-jerk measures introduced that might destabilise a fundamentally sound economy and business environment,” Smiddy noted.

“In particular, I welcome the decision by the Minister not to increase excise duty on beer. This is a clear recognition of the contribution of the brewing sector to the Irish economy.

“I am pleased to note the incentives the Minister has taken in respect of supporting SMEs, and start-up businesses, as they will assist many companies with their early-stage development.”

senator tabled an amendment to make it illegal to discriminate against people on the basis of payment method. But in the opinion of Retail Ireland, the resulting Sections were a blunt instrument.

Although the Consumer Protection Act has been cast and signed into law by the President, Micheál Martin TD, Minister for Enterprise, Trade and Employment, has yet to sign the ministerial order that commences this legislation. Hence, Sections 48 and 49 still hang in the balance.

What is the solution? How can companies be prevented from tying customers to direct debits, while still allowing retailer discounts? “The National Consumer Agency are keen to draw up codes of practice with businesses,” said Denihan. “For argument’s sake, if there was a specific issue such as skewed direct debit deals, that could form part of the code of practice. They need a surgical strike rather than carpet bombing.”

M&S Make their Mark MARKS & Spencer has opened its 17th Irish store, a 17,000 square feet premises located at the Fairgreen Shopping Centre in Mullingar, Co. Westmeath. “We were delighted with the response to the opening of our new store in Athlone earlier this month, and our Mullingar store looks as if it will be just as popular with customers,” said Tony Parry, Marks & Spencer, Regional Manager, Ireland. “With the opening of this store, we have created over 1,500 new jobs across the country over the past 18 months.”

Britvic Top Soft Drinks Supplier BRITVIC Ireland is on top of the world, becoming the number one soft drinks company in Ireland with 33.1% market share by volume (Source: Canadean 2006). This comes after Britvic plc’s acquisition of the soft drinks and related businesses of C&C in August 2007. Britvic Ireland brands include: 7UP, Ballygowan, Club, Cidona, Pepsi and Energise.

Alf Smiddy, MD, Beamish & Crawford.

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RN December07News ●

Irish Food Industry to be Worth €15bn by 2020 A NEW Bord Bia report predicts that the Irish food and drink market could increase by almost 40% and could be worth more than €15bn, by 2020.

Furthermore, if Irish food suppliers can successfully anticipate and respond to emerging consumer needs, then this figure could rise to over €18bn, a 63% increase.

Amongst the emerging consumer needs, published in Bord Bia’s Anticipating Tomorrow report, were the health-enhancing functional benefits of food and drink. Consumers try to minimise their environmental impact through the kinds of food and drink they consume, and prefer to purchase high quality products sourced either locally or within Ireland.

All these concerns are coming to pass “not because the era of cheap food is at an end (and it may well be) but because consumers perceive significantly increased benefits and an enhanced role for food in their daily diets,” said Aidan Cotter, Chief Executive, Bord Bia. “Household expenditure on food in these circumstances would then remain closer to its current level of 18%, notwithstanding rising incomes, rather than converge towards the European average which is currently at 13%.”

‘Anticipating Tomorrow’ presents the food and drink sector with four potential future scenarios and a challenge to ensure the sector continues to evolve and innovate as society does. These scenarios are entitled Round the Table (environmental and resource concerns lead to a more community-minded world); From the Greenhouse (consumer focus on improving health without harming the environment); Off the Menu (new and exotic eating experiences) and In the Lab (food and drink as fuels and tools to improve health). Each scenario represents an extreme view of the future and is designed to provoke and challenge existing assumptions of what the future might hold. The most likely scenario for the domestic food and drink market in 2020 involves a combination of all four future worlds.

The fifth scenario, or preferred vision, has been based on the four future scenarios outlined above. In this vision, great importance is placed on the healthenhancing functional benefits of food and drink. Consumers also have high levels of concern for the environment and try to minimise their own environmental impact and that of the food and drink they consume. Where possible, consumers prefer to buy high quality products sourced either locally or within Ireland and some even grow their own super foods. This environmentally responsible, healthy behaviour prevails approximately 80% of the time, with forays into indulgence at the weekends or on special occasions.

In the preferred vision, the food and drink industry has found solutions to improving food yields and using natural and environmentally friendly techniques of preserving foods that enhance their nutritional value. Food processing is about finding all the best possible combinations of fresh, natural foods to create ‘super products’ packed with health boosters that meet the needs of an increasingly on the go society. The health of the nation has vastly improved and obesity has declined rapidly amongst children.

The vision for the Irish domestic food and drink market in 2020 recognises that while 13 years is not far off, the world will have changed in significant ways between now and then.

Anticipating Tomorrow identifies five strategic priorities that the food and drink

Pictured at the launch of the Bord Bia ‘Anticipating Tomorrow’ report is Aidan Cotter, Chief Executive, Bord Bia.

industry must address going forward in order that the preferred vision can be achieved. These are: - Strong consumer connections – in order to more effectively address consumers’ needs, offer reassurance on quality and safety and aid their decision making.

- Flexibility, creativity and innovation – new alternatives are more crucial than ever with consumers being offered more and more choice.

- Improving efficiency – making further efficiencies will be critical in light of the increasing costs of conducting business in Ireland.

- Effective routes to market – meeting consumers’ changing lifestyles and evolving shopping habits.

- Visionary leadership – is required in order to remain competitive in the global economy.

CSNA Fury at Cigarette Price Hike THE Convenience Stores and Newsagents Association have angrily described the recent budgetary changes to the price of cigarettes as bad news for the retailer. The reduction from an average GPM of 9.15% to 8.75% should cause retailers across the entire retail channel to question the fairness of government and cigarette company price control of the product, they maintain.

The CSNA have frequently requested to the Department of Finance to discontinue the current method used to calculate the price of cigarettes.

“The CSNA believes that the retailer, not the government or the cigarette company, should be allowed set the price of the product in our shops, subject to a nationally fixed minimum price, to ensure that the product is not discounted, contrary to legitimate public health concerns,” argued Vincent Jennings, CEO, CSNA. “We are once again calling upon the Minister of Finance to enable retailers to set the price of all products in their shop subject to market forces, not tobacco companies’ marketing policies.”

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RN December07News ●

World Food Forum Held in Dublin DUBLIN recently hosted the Annual World Food Technology and Innovation Forum, an event which discussed matters such as food innovation, new food product development and consumer trends. The sixth event of its kind, the Forum brought together world leaders in R&D, technology and product development, giving them an opportunity to discuss methods of innovation and meeting consumer demands.

Eddie Hughes, Manager of the Dairy and Functional Foods Department in Enterprise Ireland, lead sponsors of the Forum, told RETAIL NEWS that the event’s main objective was to raise awareness and build innovative capability for Irish food manufacturers.

“Given the pressures on commodity foods and also on the agri-policy and economics area, we feel the need for companies to innovate,” he said. “That’s not an easy thing to do. You have to be aware of emerging technologies and marketing trends that are happening within the food sector. We find that events such as these have a twofold objective: they keep our clients up to speed with emerging technologies, and they also help our network with other participants.”

As well as showcasing emerging technologies and food trends, this year’s

Forum had a ‘speed dating’-type event, in which industry players could express areas of mutual interest. Topics discussed included EU nutrition and health claim regulations, and the challenges involved in the regulatory environment for functional food development.

Nestlé spoke about the development of performance enhancing ‘mood’ foods. Marks & Spencer gave a talk about social responsibility in the arena of waste management and packaging demands. There was also a presentation on personalised nutrition – genomics and gene mapping – whereby individuals can choose foods that are suitable for their personal metabolism.

Arla Foods discussed the challenge of making new products succeed, while another seminar stressed the importance of harnessing scientific studies to attract health conscious consumers.

“I hosted a table that spoke about the open innovation agenda,” noted Eddie Hughes. “Many companies, especially food multinationals, are moving from a position of inventing themselves to inventing with others.”

But can Irish food and drink innovation compete in a global or European scale? “I think so,” said Hughes. “Ireland has fairly prominent position. Baileys

Irish Cream Liqueur is one of the most successful brands internationally.

Ireland also plays a key role in supplying the infant formula sector as well as the soft drink beverage sector. Also, the fact that our main agricultural outputs – dairy and beef – are from a grass-fed base gives us competitive advantage, in that a lot of money is going into supporting companies that are developing high-grade dairy-based nutritionals, incorporating them into beverages and other consumer products.”

He concluded: “We believe that food innovation is important and Enterprise Ireland is there to support companies in two ways: to improve the capability by investing in people, but also to nurture connectivity between the institutions and Best Practice centres around the world. We have a substantial network in that regard.”

Michael Barry Named Cork Business Person of the Year MICHAEL Barry, Managing Director of Barry Fitzwilliam Maxxium has been named the Cork Business Person of the Year 2007.

At an awards ceremony attended by Cork’s top business people held in The Maryborough Hotel & Spa, Cork, Michael Barry was presented with his award by the Minister for Enterprise, Trade & Employment, Micheál Martin TD. Michael’s company, Barry Fitzwilliam Maxxium, is currently celebrating its 25th anniversary in business, and now turns over almost €90m per annum.

Their brand portfolio includes Corona Extra, Absolut Vodka, Remy Martin Cognac, Courvoisier Cognac, The Famous Grouse Finest Scotch Whisky, Teachers Scotch, Jim Beam Bourbon, Mont Gras, McGuigan, Glen Ellen, Michel Lynch and Guigal Wines.

6

Pictured receiving the award for Cork Business Person of the Year 2007 is Michael Barry, Managing Director of Barry Fitzwilliam Maxxium (centre), with Minister for Enterprise, Trade and Employment Michael Martin TD (right) and Chairman of Anglo Irish Bank plc, Sean FitzPatrick, joint sponsors of the awards.

RN December07News ●

Tesco Worth €2.5bn to Irish Economy TESCO Group is worth €2.5bn a year to the Irish economy and the company supports almost 27,000 jobs between direct and indirect employment, according to a new report, ‘The Impact of Tesco on the Irish Economy’.

“Tesco stores outside of Ireland are the second biggest buyers in the world of Irish food and drink, eclipsing the whole of France, which has traditionally been Ireland’s second biggest food and drink export market,” Seamus Banim, Tesco Ireland spokesperson told RETAIL NEWS. “The report also outlines Tesco Ireland’s important role in the development of the Irish food and agriculture sector.”

The report, published by Indecon International Economic Consultants,

also said that Tesco Ireland’s domestic expenditure on Irish-produced goods and services - including food, other products for re-sale, wages and salaries, business inputs and capital investment - was €1.28bn. Overall domestic expenditure expanded by almost 29% between 2004 and 2006.

Tesco facilitates the exports of small, medium and large Irish companies, including Kerry Foods, Diageo, Lir Chocolates, Barry’s Tea, Bewleys, Kepak, Kerrygold, Boyne Valley Group and others.

Tony Keohane, Chief Executive, Tesco Ireland, said: “Working with and supporting Irish agriculture and the food processing sector have always been important to Tesco here in Ireland. This

research confirms the unique success of our approach and the considerable benefit it has generated for the economy.

“It has been a two way process with Tesco presenting the openings both in the local and export markets, and Irish food companies exploiting those opportunities to good effect. We expect this process to continue with further growth in Irish product sales and exports.”

The Taoiseach, Bertie Ahern TD, welcomed the report’s findings: “The growth in Tesco's sales of Irish goods both at home and internationally shows what can be achieved when retailers work in partnership with local producers. I very much hope that this progress can be maintained, and indeed intensified, in the future.”

Ireland’s Appetite for Eating Out Grows IRELAND’S ‘cash rich, time poor’ society has created a new generation for whom eating out is the norm, an indepth analysis of food consumption trends among Irish consumers has revealed.

Commenting on the findings of the second Aramark/Campbell Catering Food Futures Study, which surveyed over 1,000 consumers aged between 15 and 74, Joan O’Shaughnessy, Managing Director of Aramark/Campbell Catering Ireland said; “Eating out accounts for a significant and growing share of consumer spending, which in turn is a key driver of economic growth. Our young and expanding population will continue to drive further growth in the sector and increasingly the success of the eating out sector will be a key indicator of the success of the economy.”

The growing emphasis on healthy eating, together with increased food consumption outside the home also means that more people expect healthy options, with 55% claiming to seek a healthier option when eating out. However, one in two Irish consumers (53%) feel they have a very healthy diet - a marginal decline (6%) on 2005.

According to Joan O’Shaughnessy, this might be explained by the fact that consumers are bombarded with food and nutrition messages on a daily basis and

as a result are often confused as to what is healthy or unhealthy.

“More and more people are placing responsibility for their eating habits on the eating out sector rather than taking ownership of their diet,” she said. “We will continue to see a growing focus on the role of the eating out sector in promoting a healthier diet in the general population, particularly as emphasis is placed on tackling our growing obesity problem.”

The study found that: 4 in every 5 adults eat out in restaurants, with fast food outlets, pubs and cafes also among the most popular destinations; • 44% of respondents said they were eating outside the home more often than they used to Joan O’Shaughnessy, Managing Director of Aramark/Campbell Catering Ireland.

(40% in 2005); • Meat and Two Veg remains the two in five Irish adults claiming to nation’s favourite (48%) although eat a sandwich at lunch. with the ‘instant generation’ (1524s), Chinese food is the firm • The growth in smoothie consumpfavourite; tion is a new trend as people con• 61% of those who eat outside the tinue to seek healthier options. 1 in home do so at lunchtime (52% in 3 consumers buy fruit smoothies, a 2005). Sandwiches are the most popmarket now estimated to be worth ular choice – as evidenced by the in the region of €4m by ACNeilsen. explosion of sandwich shops - with •

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RN December07News ●

Ten Trends to Watch in Packaged Goods in 2008 WITH the new year fast approaching, new product developments promise better health and happier taste buds in 2008. Datamonitor’s Productscan Online has identified 10 trends to watch out for in consumer packaged goods for the coming year.

Probiotics, Beyond Yogurt Probiotics are finally hitting the mainstream, courtesy of launches like Danone’s Activia yogurt. But probiotics aren’t limited to yogurt. In 2007, they moved into cheese with Kraft LiveActive Cheese (new in the USA and Canada) as well as other dairy products, and there are indications that chocolate might be next.

Organic Foods & Beverages for Kids Growing controversy over marketing practices involved in selling foods aimed at kids is providing an opening for organic food and beverage producers. Organic product makers are just beginning to aggressively target the kids’ market.

Fresh is Best One of the biggest talking points in food retailing is Tesco’s opening of numerous ‘Fresh & Easy Neighborhood Market’ convenience stores along the West Coast of the USA. Tesco hopes to reinvent the convenience store as the destination for fresh food. While it is too early to judge how Tesco’s effort is going, “fresh” is indeed hot.

New frozen foods that are cooked with steam in special microwave packages are an up-and-coming “fresh” trend.

Superfruits for the Masses High nutrient “superfruits” like acai, goji berries, noni and even pomegranates have recently been popping up in a widening array of food and beverage products sold though health and natural foods stores. Look for “superfruits” to go mainstream in 2008 as larger companies begin to get into the game. 2008 could also be a great year for emerging superfruits like yumberry.

Out of Africa African products are starting to make an impact on Western markets. We are just 8

beginning to see an influx of African ingredients like shea butter and baobab oil into new non-food items like skin creams and cosmetics. For foods, hot peppers like African Birds Eye Chili – also known as Peri-Peri – are beginning to appear in new sauces and condiments.

Flavours from North Africa like couscous are also gaining ground.

Sleep Soundly As research shows a link between lack of sleep and obesity, look for a growing market for sleep aids and stress-relieving products that promote sleep like Nakazawa Adult Milk in Japan, which is naturally high in melatonin, a sleep aid. Also, look for new products based on the amino acid gamma-aminobutyric acid (GABA), which is lauded for its stress relieving properties.

Crunch Time Making food “better for you” without stripping it of the things we all love is a challenge for food scientists.

Increasingly, this challenge is being met with new products that deliver a hearty crunch that can help make up for reduced fat and calories. According to Datamonitor’s Productscan Online database of new products, the number of worldwide new product reports touting “crunchy” or “crispy” tastes doubled between 2002 and 2006.

Danone Activia, one of the most successful probiotic products to hit the market.

Greening Up For the Planet Packaged goods makers are finding creative new ways to be green and planetfriendly. In Finland, Into Limetti (lime) long drink is produced by fermentation using wind power. UK-based Stonegate Farmers Respectful Free Range Eggs are produced by hens on farms powered with wind and solar electricity. Procter & Gamble’s Pur Flavor Options enables consumers to flavour water as it comes out of the tap, avoiding the waste associated with bottled water. Finally, USA-based Wonder Tablitz offers a line of household cleaners and deodorisers that use effervescent bottles and special spray bottles. Consumers add their own water and reuse the bottles.

Planning Issues Bold (Flavour) is Beautiful One consequence of ageing is that our sense of smell and taste can start to diminish by the time we hit our 40s.

To make up for this sensory loss, consumers are demanding hotter, spicier and bolder flavours. Sales of hot and spicy salsas are rising, as are bolder cheeses.

Power Up With Caffeine Caffeine lovers are in luck these days.

It used to be that coffee and soft drinks were among a handful of products containing caffeine. Not any more. In 2007 alone, caffeine has found its way into sunflower seeds, mints, potato chips, jellybeans and even instant oatmeal. Next up is hot chocolate.

RETAIL woes were expressed at a recent Bord Pleanála hearing in Waterford. The hearing concerned the proposed €280m Newgate Centre, which plans for 60 shops, including three anchor units, a 153bedroom four-star hotel, and underground parking for over 600 vehicles, in the heart of the city. The Centre’s representative said that the city was leaking around €19.2m worth of retail spending every year to developments in Kilkenny and Wexford, and that the Centre would bring shoppers back to the city. Meanwhile, not far down the road, in Tramore, Tesco has started to build a new 2,740 square metre supermarket.

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John Player & Sons is the No. 1 Manufacturer within the RYO Market @ 66% with Drum & Golden Virginia as No.1 and No. 2 respectively

12.5g pack size sector has 50% share of the RYO Category and is growing @14% vs. last year

Golden Virginia is No. 1 brand in the world and No. 2 in Ireland with 30.4% Market Share

The NEW Golden Virginia 12.5g has been very successful and accounts for 8% of the sales of this fast growing sector

The Roll Your Own Market is growing 10.4% vs. last year but Golden Virginia is growing ahead of the market @11.0%

Source: Nielsen Scantrack Multiples + Groups + Forecourts MAT Volume August 2007

IF IN DOUBT – LEAVE THEM OUT Smoking is for adults and John Player & Sons believes that children should not smoke. Please be ever vigiliant. If there is any doubt about a person’s age - always refuse the sale.

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RN December07Industry News ●

Daybreak Store of the Year 2007 DAYBREAK, the symbol group operated by Musgrave Wholesale Partners, announced the winner of the Store of the Year competition - Walsh’s Daybreak store in Costelloe, Connemara, Co Galway.

Gearoid and Antoinette Walsh, who are pictured receiving the award from Frank Coghlan, Managing Director of Musgrave Wholesale Partners, impressed the jury of judges by consistently instilling the Daybreak brand pillars of quality, service, convenience and value.

The award was presented at the Daybreak “Delivering The Future” conference, at the Lyrath Hotel, Kilkenny, recently.

Fresh Approach by Minister MINISTER of State for Food and Horticulture and North Fingal TD, Trevor Sargent, is presented with two gourmet hampers for a charity of his choice on his tour of Fresh – The Good Food market, at Northern Cross on the Malahide Road, by the Head of Sales and Marketing at the store, David Field (left) and General Manager, Sean McGrane. This visit marks the first anniversary of the Irishowned local supermarket, which specialises in providing gourmet, speciality and fresh produce.

Repak’s Green Christmas WITH the rapidly approaching festive season, Repak’s Green Christmas campaign is calling on all retailers to encourage their customers to jingle all the way down to the recycling centres and bottle banks as they look towards an even Greener Green Christmas in 2007. According to research undertaken by Repak, each household will generate circa 54 kilos of used packaging over the Christmas period. Repak is aiming to collect and recycle 45% of this used packaging, which comes to 35,000 tonnes in total.

During December and January, Repak will run a nationwide TV, national and local print campaign, along with outdoor shopper and radio advertising to support the call to recycle and also to encourage people to visit the special Green Christmas recycling centres.

SuperValu’s Festive Goal

Bringing Home the Bacon

SUPERVALU has teamed up with Goal this year to distribute a CD of Christmas favourites in both Irish and English. The CD is available in all SuperValu stores across the county and all proceeds from the sales will go to Goal. The aim of the CD is to raise €90,000, which will go towards building four new schools in Malawi.

GAA commentator Micháel O’Muircheartaigh launched the Cuimhni Nollag i nGar is i gCéin CD at Ryan’s SuperValu with the help of the kids from Scoil Niocláis National School in Grange, Cork.

BORD Bia recently launched a major campaign to promote quality assured bacon and cooked ham in retail outlets. The campaign, which runs across all media, aims to increase consumer understanding of the Bord Bia Quality Mark. Pictured at the launch are Minister for Agriculture, Fisheries and Food, Mary Coughlan TD, and Aidan Cotter, Chief Executive, Bord Bia. Recent research indicates that 78% of shoppers are aware of the Quality Mark and consequently are more likely to purchase these products with its assurance of quality and traceability.

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Making your Christmas

really special

is really special to us.

From our delicious turkeys to our famous mince pies; and our specially-iced Christmas Cakes to our tasty party treats‌ at Superquinn we’re proud to be the people who make your Christmas special.

Shop online @ superquinn.ie

RN December07Industry News ●

Baileys’ Billionth Bottle BAILEYS Irish Cream recently celebrated the production of its one-billionth bottle of world-class cream liqueur. The historical bottle came off the production line at Baileys Dublin plant at Nangor Road and represents the phenomenal success that Baileys has achieved since the company first produced Baileys 33 years ago in 1974. The landmark one-billionth bottle is pictured being presented to Minister for Agriculture, Fisheries and Food, Mary Coughlan TD by two of Baileys longest serving employees, Denis Minihane and Tony Berigan, who between have almost 60 years’ service at Baileys. This year alone, Baileys have sold over 7m cases with a global performance of 10% net sales growth. Much of this growth been attained by the successful launch of Baileys Flavours, which have achieved sales of one million cases in their first year of launch.

DIT Retail Graduates Conferred DUBLIN Institute of Technology recently conferred the first-ever graduates of its Master of Business Studies in Retail Management. This is the first ever masters in Ireland specialising in retail management and allows business graduates working in the sector to upgrade their knowledge base and become familiar with some of the leading edge technologies in retailing. The part-time MBS has its lectures on Tuesday afternoons to facilitate staff release and also has three additional full-weeks over the two years of study, including an international retail study tour taken in the early summer. A full-time version of the MBS starts in DIT next year. One of the graduates, Owen McFeely of the Musgrave Group, was presented with a special award for Academic Excellence after the conferring. The next intake of students for the course takes place in September 2008. Further information is available from Don O’Riordan in DIT at (01) 402 7059 or email don.oriordan@dit.ie.

Pictured are the first graduates from DIT’s MBS in Retail Management, (back row, l-r): Don O’Riordan, Head of Retail Studies, DIT; Siobhan Byrne, Byrne’s Londis, Wicklow; Prof. Brian Norton, President, DIT; Paul O’Sullivan, Director, Faculty of Business, DIT; Mary Greenan, Uniphar; Sarah Nolan, Argos; (front row, l-r): Shane Flynn, Topaz; Declan Hore, Hore’s, Wexford; Barry Carty, BWG; and Owen McFeely, Musgrave Group.

Shamrock Foods Invests in Voice Picking Technology

M&S’ Focus Ireland Appeal

PICTURED are (l-r): Michael Broderick, Operations Director, Shamrock Foods; and Ciaran Lavelle, Business Development Manager, Heavey RF, at the announcement that Shamrock Foods has invested almost €300,000 with Dublin-based IT company Heavey RF to replace its RF system with advanced voice picking technology. The solution also includes handheld and forklift mounted computers. Shamrock Foods, one of Ireland's leading sales, marketing and distribution companies, expects some improvements in its pick rate and accuracy as a result of this investment .The system was installed in the company’s 225,000 square feet Ballymount facility in Dublin, where over 70 members of staff are now using the new technology., which provides picking instructions to warehouse operatives via a ‘text to speech’ engine through their individual headset.

The user then speaks back confirmation to the system using Vocollect’s industry-leading voice recogniser. Information is passed to and from the users via the wireless local area network (wlan).

MARKS & Spencer stores across Ireland are urging customers to help raise vital money for its annual Focus Ireland appeal to support families and individuals facing a future threatened by insecure housing and homelessness. Since November 21, M&S stores are stocking a range of limited edition Christmas food products across its food-to-go, deli and dessert ranges, as well as a selection of Christmas cards.

M&S will make a donation to Focus Ireland, the housing and homelessness charity, every time its customers in Ireland choose to buy one of the specially labelled products. The Christmas range includes a number of items perfect for a festive lunch, such as the Turkey & Bacon Feast sandwich and Posh Seafood Cocktail sandwich. There are also several special Christmas treats available, including White Chocolate & Cranberry Cookies and Raspberry Sherry Trifles.

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HERE’S TO A MERRY CHRISTMAS AND ANOTHER GREAT YEAR DONNY Finance

CAROLINE Marketing

STEPHANE Sales

CIARA Marketing

Irish Distillers Pernod Ricard thanks you, our customers, for your support over the last year.

DYNAMIC PEOPLE, DYNAMIC BRANDS www.irishdistillers.ie We remind you to drink responsibly

Lo-Call: 1850 774 748

RN December072007 – The Year in Retail ●

Year of Growth for Retail Sector Retail News talks to all the major players in Irish retail about the year that was.

Throughout

2007, symbol groups capitalised on the sustained popularity of convenience stores. Despite ongoing competition from the multiples, hundreds of new retail outlets opened across the country, contributing to consumer demand for a wide choice of products, convenience foods and healthy options.

ADM Londis announced that it is on track to break its target of recruiting 40 new stores to the network for 2007. “The company has signed up over 70 new stores over the past eighteen months, including 36 new stores in the ten months to October 2007,” said Stephen O’Riordan, Joint Chief Executive.

“ADM Londis now services over 370 independently owned stores nationwide, and the Group employs over 7,000 people in retail, distribution and support services.”

Stonehouse added over 60 stores to its group symbol shops - including Costcutter, Gala, Mace and Vivo while Peter Foley, CEO, Mangan’s Wholesale, says that the Mace and Xpress Stop brands, which were given a new store design and image,

14

Stephen O’Riordan, Joint Chief Executive, ADM Londis plc.

received a number of openings and refits. Indeed, the Vivo brand opened 10 new stores in locations ranging from Donegal to east Cork.

XL Stop & Shop’s growth continued apace, with 36 new image stores opening during the year, bringing the total new image stores to over 80 (of a total 130 stores), while 2007 was a record year for the SPAR group across the SPAR, SPAR Express and EUROSPAR formats.

“A record number of 53 new SPAR group stores opened in 2007 and a record number of group retailers

achieved the SPAR 5 Star Award for excellence in store standards and food safety,” said Malachy Hanberry, Sales & Retail Advisory Services Director, SPAR Ireland.

Meanwhile, Gala – which has over 300 stores under the Gala umbrella (Gala, Gala Superstore, Gala Xpress and Checkout) – is continuing to attract retailers from across the country. In 2007, the group set down an objective of opening 30 stores, which has been exceeded.

Value Centre and XL Stop & Shop invested in upgrading and extending

RN December072007 – The Year in Retail ●

Coonagh Cross (Limerick), Claremorris, Westport and Abbeyfeale,” says Seamus Banim, Tesco Ireland. “Three new petrol stations also opened in Clonmel, Claremorris and Arklow.”

Carry on Cash & Carry

We believe that sustainability should not be a shopping list of gestures but integral to how we do business, as well as being measurable and transparent.”

For Mangan’s Wholesale, 2007 was a busy year, which coincided with the company’s 75th anniversary. Peter Foley, CEO, explained: “We completed a number of exciting promotions which were aimed at driving footfall into the stores. It was great to see customers concept to their Cork and Belfast returning to a traditional Malachy Hanberry, Sales & Retail Advisory Services Cash & Carry outlets. cash & carry shop where Director, SPAR Ireland.

Also, a 2007 highlight for Value they availed of exclusive Centre and XL Stop & Shop was windeals and met with their ning the ‘Cash & Carry Manager of peers. The year was rounded off in its branches (including Wicklow, the Year’ at the GRAM awards for the exciting fashion with the opening of Kilkenny, Clonmel and Cavan). second year in succession. the country’s newest cash & Barry Group invested over €60m Furthermore, BWG developed a carry/logistics centre in Tullamore. in its retailers during 2007, which We see Tullamore as included the revamp of 22 stores and a hugely strategic the development of 36 new stores, location where we bringing the total number of can bring an Costcutter stores in Ireland to over improved wholesale 121. offering and avail of What about Superquinn openings? the excellent road Simon Burke, Executive Chairman, network to strengthexplained: “It’s been a very busy year en our geographic for Superquinn as the business conreach.” tinues to invest in significant refurADM Londis were bishment of stores and expansion in also thinking big, the Greater Leinster area… In June with their €6m 2007, a new 10,000 square feet store investment in the was opened in Rathborne, Dublin. development of a new The first new store since 2004, 20,000 square feet Rathborne is a full supermarket in a corporate headquarbusy new urban development.” ters at Johnstown, Marks & Spencer proved that it Naas, Co. Kildare. too is no slouch, with a number of new This state of the art store openings, including Letterkenny, headquarters is situTallaght, Athlone and Mullingar. “Our ated alongside the remodel programme is well undercompany’s existing way,” said Jenny Mulholland, Head of 90,000 square feet GM, Marketing & Property Planning warehouse and distrifor M&S Ireland. And, of course, bution facility.

Tesco’s rise to the pinnacle of Irish Meanwhile, retail cannot go ignored. “2007, up to Musgrave Wholesale December 3, saw the opening of new Partners extended stores in Rathcoole, Wexford (replacetheir Market Street ment), Celbridge (replacement), Simon Burke, Executive Chairman, Superquinn.

15

RN December072007 – The Year in Retail ●

year in sales and profitability so far… billing offering and In two very short years, Topaz have keen promotions and managed to combine the large busimarketing initiatives. nesses of two of the top four fuel supPeter Foley, CEO pliers in Ireland.” of Mangan’s Musgrave Group are also in high Wholesale, said: spirits. Both the SuperValu and “Mangan’s Wholesale Centra brands grew ahead of the marhad an excellent year. ket, while in Spain and the UK, the We set out a number Group continued to perform well and of objectives in grow at a steady pace. “Just over 18 January as part of the months ago, Musgrave and its retail milestone of our 75th partners began a journey of co-creanniversary in busiation to further develop all of its retail ness. I am pleased to brands,” said Chris Martin, Musgrave say that we delivered Group CEO. “This was achieved by on all our targets.” working with our retail partners in Gary Desmond, SuperValu, Centra, Budgens, Londis, Gala CEO, was equalDaybreak and DayToday to redefine ly optimistic: “Gala our retail brands by launching new had an exciting year stores across the island of Ireland, as in 2007. It was a periwell as developing existing stores and od of strong growth Peter Foley, CEO, Mangan’s Wholesale. infrastructure.” and investment. At Finally, 2007 saw the renaming of the beginning of the Barry’s of Mallow to the Barry Group. year, I was appointed as CEO of Gala. new state-of-the-art 55,000 square According to the Group, the new This was followed by several new feet distribution centre in north name and corporate identity were team appointments and growing staff Dublin, a facility that will enable the designed to reflect the growth of the numbers.” group to grow its business in Dublin company since it was established in Tom Shipsey, Chief Executive of with an expanded walk-in offering 1955, as well as to encompass growing Stonehouse, was similarly enthusiasand delivered service for the indeoperations nationwide. tic: “Despite all predictions, the pendent retail, licensed, catering and Stonehouse Group perhospitality trades. formed exceptionally well throughout all our A Year to Remember categories, Foodservice Numerous symbol groups and superand alcoholic drinks markets will have good reason to celebeing the stars.” brate Christmas 2007, as the sector 2007 was a also has continued to profit from the growgood year for Mace, as ing economy. In April, ADM Londis plc performance improved announced another successful set of in critical areas such as results for 2006: profit before tax store numbers, product increased by 12% to €5.1m, on a promotions design and wholesale turnover of €355m (up 6%), take up, retail developrepresenting a combined retail ment initiatives, and turnover of €723m in that period. The marketing and advergroup also announced that its shares tising campaigns, were now valued at €79.53 per share: according to Peter an increase of over 27% on the April Kealy, Mace Chairman.

2006 valuation and a cumulative Frank Gleeson, increase of 65% since April 2005.

Retail Director of Topaz The Barry Group reported a comEnergy Group Limited bined turnover of €632m in 2007, said that it was a year while BWG Wholesale Division expeto remember for the rienced “healthy sales growth” in all group: “We have been sectors of its business, including the working on the integraindependent retail, licensed, catering tion of the Statoil and and hospitality trades. Strong sales Shell businesses in growth was driven by the added Ireland and we have capacity to the Value Centre network, Gary Desmond, Gala CEO. had a very successful XL Stop & Shop sales, the central 16

RN December072007 – The Year in Retail ●

Carbon Reduction’, “The current which focuses on packagdouble digit round recycling, ing reduction and energy of cost increases sustainable use throughout all operations - as in the food sector its well as a €30m to is very concerning investment reduce in-store energy consumption and this will by 50%.

Tesco’s Seamus impose greater Banim explained: “During the course pressures on all of the year, we continued to work with those in the local Irish suppliers in increasing the convenience retail amount of produce grown locally and sector to maintain reducing our carbon footprint. We joined forces with Irish support for vegetable grower, Country Crest, to independent grow over 3,500 tonnes of onions for retailers.” the Irish market.

A Bit of Initiative Retailers are no stranger to innovation, or finding new ways to draw customers into their outlets, and 2007 saw plenty of that. Superquinn revamped their loyalty card scheme, introducing the Reward Card, offering points, vouchers or the opportunity to earn vouchers from over 450 stores through One 4 All, their retail partners.

Tesco Mobile was launched in October. Using the 089 prefix, Tesco Mobile offers one simple prepay pricing plan of 20c per minute calls to any network at any time, with all text messages costing 9c. Furthermore, Gala introduced new technologies for its retailers, such as the Celerity Invoicing Service.

Earthly Concerns Global warming poses a challenge to every person and every business in Ireland. But saving energy also means good business, so some retail groups were keen to capitalise.

In May, Tesco announced its ‘Strategy on the Environment and

Chris Martin, Musgrave Group CEO.

Previously, the majority of onions on sale in Tesco Ireland were imported.

Irish peppers are now supplied to our stores from Keelings in North Dublin, replacing peppers from Holland and Spain.”

Chris Martin, Musgrave Group’s CEO, said that Musgrave is “committed to playing a leadership role in tackling sustainability challenges and minimising any negative impacts on our business. We believe that sustainability should not be a shopping list of gestures but integral to how we do business, as well as being measurable and transparent.”

In September, Musgrave was presented with the overall award for Outstanding Achievement in CSR at the Chambers Ireland President’s Awards for Corporate Social Responsibility. This was the first time that the award went to an indigenous Irish company.

Food for Thought What is a retailer without food and drink? In 2007, retailer innovation included new ways of delivering products to customers, as well as a pantheon of commendable home brands.

Mangan’s Wholesale rolled out the Country Deli concept to 45 stores, according to Peter Foley, CEO. “The concept includes; deli branding, a hot and cold deli exclusive menu and a coffee component under the Intenso brand.”

For Superquinn, the highlight of the year was the launch of the SQ Collection, a range of products developed to offer shoppers restaurant quality food at home. This own-label range has over 100 different products, from cheese, meat, lamb or chicken dishes to pasta, biscuits and desserts.

2007 also saw Stonehouse’s Homestead brand being recognised as one of the 20 Great Irish Brands in an Irish Independent review on branding.

“Homestead and the members of Stonehouse undertook our largest ever corporate responsibility funding,” said Tom Shipsey. “In 2007 to date, we have handed over €250,000 to the Children’s Hospital and expect to do the same in 2008. This €500,000 donation will be the single biggest individual donation to the Hospital in their lifetime.”

Stonehouse also launched its foodservice label, White Hat. 17

RN December072007 – The Year in Retail ●

Tackling the Elements

were rising costs. Peter Foley, CEO of Mangan’s Wholesale, elaborated: “The current double digit round of cost increases in the food sector is very concerning and this will impose greater pressures on all those in the convenience retail sector to maintain support for independent retailers. I also feel that the ever growing list of regulatory authorities in our sector seems way over the top.”

Peter Kealy, Chairman of Mace Ireland, noted that new initiatives to improve operating margins must Peter Kealy, Mace Chairman. be found in order to ensure profitability. “The increasing threat from multiples was 370 independently owned stores and also a continuing threat,” Kealy conaims to break the 400-store mark over tinued. This was a thought echoed by the course of the next 12 months. In Value Centre and XL Stop & Shop, addition, the company has embarked who said that independent retailers on a store purchase strategy to are finding it harder to compete, as acquire sites that are of “strategic valthe multiples grow their market share ue” to the Group. According to and consumers shift towards more Stephen O’Riordan, this is being prolifestyle-led retailing. gressed through a new subsidiary of Meanwhile, Stephen O’Riordan, the group.

Joint Chief Executive for ADM Londis At its recent annual conference, Growing Concerns plc, said that the repercussions of the Gala announced plans to open 35 Foremost amongst retail groups’ removal of the Groceries Order are new stores in 2008, its tenth primary concerns during the year still being felt: “The removal anniversary, creating 400 jobs and of the ban on below cost sellrepresenting a €40m investment: ing has resulted in the extenthis will coincide with the unveiling sive promotion of alcohol of a new corporate identity for the sales in the retail sector. This brand. has been led by the multiSuperquinn will continue its ples, with the competitors investment in its business in 2008, left with no choice but to with new stores planned for compete. This price reduction Ranelagh, Rathgar and Baldoyle and is not in the best interests of “continuing exploration of new sites in society as a whole, leading us urban areas”, according to Simon to a point where a bottle of Burke, Executive Chairman. beer can be purchased for M&S Ireland are looking even furless than a soft drink.” ther afield, said Jenny Mulholland, Head of GM, Marketing & Property Planning: “We have announced plans Paving the Way for store openings in Limerick in 2009 Retailers have high hopes for and Swords in 2013. We have built a 2008, and expansion is on strong pipeline of new stores and most of their minds. ADM expect to add 30-40% of new space Londis currently has a Tom Shipsey, Chief Executive of Stonehouse. over the next five years.” nationwide network of over The retail groups might be largely optimistic about the year that was, but there were challenges, and amongst them was the weather, which affected sales performance as well as product delivery.

“2007 will be remembered as the year of the dreadful summer and a flood of price increases in the autumn,” said Stonehouse Chief Executive Tom Shipsey.

SPAR Ireland’s Sales & Retail Advisory Services Director, Malachy Hanberry, agreed: “The poor summer weather was an inhibiting factor in 2007, especially coming on the back of a record year for good weather in 2006. However, these events are outside our control.”

Jenny Mulholland, Head of GM, Marketing & Property Planning for M&S Ireland, added to the bleak forecast: “The summer that never happened sums up 2007 quite well and this did effect the retail market overall.” It wasn’t just the Irish market that was effected, as Chris Martin, Musgrave Group CEO, noted: “During the course of the year, droughts in Australia, poor weather conditions across Europe, as well as soaring demand for food in developing countries, put significant pressure on food price inflation.”

18

RN December072007 – The Year in Retail ●

“ This price reduction [on alcoholic drinks] is not in the best interests of society as a whole, leading us to a point where a bottle of beer can be purchased for less than a soft drink.”

model that will deliver a higher return on investment and strong sales growth potential.”

This thought was echoed by Chris Martin, Musgrave Group CEO, who anticipated further pressure on price as a result of continuing global commodity input costs.

“We also believe that consumers are moving more in the direction of ethical buying and will be more concerned with healthy eating and lifestyle,” he noted. “To meet these challenges, we will be focusing on working with our retail partners – drawing on their local intelligence and experience – to anticipate the Jim Barry, CEO, Barry’s Of Mallow. changing demands of the modern consumer and to and bigger sites built with more deliver with our retailers a food offer The Year Ahead retail services on offer, according to that’s different and better.”

2008 is likely to pose its own set of Frank Gleeson, Retail Director, For others, competition is likely to challenges, both from retail groups’ Topaz Energy Group Limited: “The remain at the fore of concerns. “The internal perspective and from the convenience market has grown in retail market will continue to be highmarket as a whole. Peter Foley, CEO store numbers and I would not be ly competitive between symbol groups Mangan’s Wholesale, predicted the surprised to see some shop closures but Gala has continued to grow its food inflation coming to the fore once and some consolidation, much like business year-on-year and is looking more. “It is essential that industry we have seen in the fuel business.” forward to a prosperous 2008,” says representatives are vigilant and Gary Desmond, Gala CEO. ensure that the value added by the Stephen O’Riordan, independent sector is stoutly defended Joint Chief Executive, and not misrepresented,” he said.

ADM Londis plc, stated: For Malachy Hanberry, Sales & “Overall, I expect to see Retail Advisory Services Director, competition in the retail SPAR Ireland, 2008 poses a less market continue to favourable economic environment increase. The last 12 than the year that preceded it, for months has seen the numerous reasons: lower economic development of a numgrowth predictions, a “long-expected” ber of niche convenience downturn in the construction sector, store offerings, combined an uncertainty in the jobs market, with an increased presand a general reduction in consumer ence of express outlets confidence levels. by the multiples, and “We remain confident about our this has resulted in prospects in 2008 because we are increased competition, focused on consumer needs to a particularly within the greater extent than any of our comurban convenience retail petitors,” he said. “We have put in market.” place the strategy that will see our And from the perretailers through any less favourable spective of the forecourt economic times to come, and we business, there will conremain bullish about our ability to tinue to be service starecruit new stores to the group in Frank Gleeson, Retail Director of tion rationalisation, 2008. We offer independent retailers a Topaz Energy Group Limited.

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RN December07IGBF Christmas Lunch â—?

Festive Fun at IGBF Lunch The IGBF Annual Christmas Lunch proved a tremendous success, raising much-needed funds for this worthwhile charity.

Pictured at the IGBF Annual Christmas Lunch are (l-r): Paul Nimmo, Musgrave Wholesale Partners; Jim Bradley, 2007 Chairman, IGBF National Committee; Andrew Clarke, Managing Director, Mars Ireland; and Tim Nolan, IGBF National Committee.

The

Irish Grocers Benevolent Fund Annual Christmas Lunch took place recently in the Burlington Hotel, where over a thousand of the great and the good from the Irish grocery sector gathered to eat, drink, be merry and contribute to a fantastic cause at the same time.

There was a hint of nostalgia in the air as this was the last IGBF event to be held at The Burlington, which was sold during the year, so the Benevolent Fund will have to find a new venue for its many functions during 2008. However, the Christmas Lunch proved an admirable send-off for the venue, with attendees being royally entertained by the inimitable Senator David Norris, event MC, while Mario Rosenstock (Gift Grub, Today FM) provided some moments of real hilarity, courtesy of his fantastic impersonations of Bertie Ahern, Roy Keane and Daniel O’Donnell, who even penned a special song for the occasion.

20

Frank Coghlan, President of Appeals and Musgrave Wholesale Partners, addresses the IGBF Annual Christmas Lunch.

Congratulations to President of Appeals, Frank Coghlan, from Musgrave Wholesale Services, and his team on a record-breaking fund-raising year, and special mention also to the sponsors who helped to make it such an enjoyable occasion, which included Mars Ireland and Beamish & Crawford.

Premier Fleet are also worthy of note, as they donated a 2008 Toyota Yaris as the main raffle prize on the day, which was won by Duo Calib of Coca-Cola.

The IGBF Fund is a registered charity (No. 6577) and is also registered under the Friendly Societies Act (No. 1775), and its objective is to provide financial relief for necessitous persons who are or have been engaged

The inimitable Senator David Norris, MC at the IGBF Annual Christmas Lunch.

in the grocery trade. This includes retail grocers, wholesalers, manufacturers and suppliers to the trade. The fund relieves hardship amongst members who have fallen on difficult times because of ill health, death in the family or unemployment.

Duo Calib of Coca-Cola, winner of the 2008 Toyota Yaris, courtesy of Premier Fleet.

B: 220 mm T: 210 mm S: 210 mm

Joint Benefits

New tasty, meaty Pedigree® JointCare+™ has been developed to help ease joint problems in dogs. Great news for your customers!

This latest addition to the No.1 selling Pedigree Snacks & Treats range is supported by a through-the-line campaign including TV advertising, press advertorials, online, PR and in-store promotions.

We’re for dogs.

NEW Pedigree® JointCare+™ - Great news for dogs, even better news for sales.

Filename

10271 JCare RetailNews FP.indd

Bleed 220 mm x 307 mm Live None Gutter None Scale None Colors cmyk Line Screen None

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Trim 210 mm x 297 mm

Last Modified 19/11/2007 15:34 ITC Eras VAG Rounded

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Job # 10271

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B: 307 mm

S: 297 mm

Your dog loving customers are highly aware of the symptoms of joint issues in their dogs and the effects these have on their well-being.

T: 297 mm

Good for dogs and great for sales

RN December07Drinks News ●

Edward Dillon/ SuperValu Off Licence Of the Year SUPERVALU Ballincollig, Co Cork, emerged as the overall winner of the Edward Dillon / SuperValu Off-Licence of the Year Awards 2007/08. SuperValu Morgan Street, Waterford, SuperValu Ardee, Co. Louth, and SuperValu Fermoy, Co. Cork, were the three runners–up at the awards.

The winners were amongst 30 finalists to reach the last stage of the competition from 179 SuperValu stores nationwide. The stores were judged against a range of criteria, including overall appearance and standards across the offlicence, planogram implementation and compliance across Spirits, Wine and Beer, implementation of promotions, innovative Spirits/Wine displays, as well as customer focused/qualified staff.

Edward Dillon is involved with this prestigious event for the first time ever. Commenting on the association, Andy O’Hara, Sales Director of Edward Dillon, said, “We are delighted to be associated with the SuperValu Off-Licence of the Year Awards, now in its 15th year. We want to ensure that the competition goes from strength to strength. This

Coole Swan Wins Special Merit Award COOLE Swan, Ireland’s first Superior Cream Liqueur, was awarded with the highly coveted Special Merit Award at the official Bord Bia Food and Drink Industry Awards. Over 200 entries were considered for one of the seven awards presented on the evening, which recognise businesses who provide food and drink solutions that make life better, brighter and easier for the modern consumer.

Sharon Buckley, Musgrave Retail Partners Ireland; Niall Shanaghy, Tom Cleary, Sean Quish and Alex Beretska, from SuperValu Ballincollig; and Andy O’Hara, Sales Director, Edward Dillon & Co. Ltd; are pictured at the presentation of the Edward Dillon / SuperValu Off-Licence of the Year Award to SuperValu Ballincollig.

competition supports our commitment to the continued development of SuperValu Off-Licences in Ireland.”

The overall winner of the 2007/08 Edward Dillon / SuperValu Off-Licence of the Year Awards, along with the three runners-up, will enjoy a trip to Nashville, Tennessee, including a visit to Lynchburg, the home of Jack Daniels and site of the oldest registered distillery in the country, and New Orleans, the home of Southern Comfort.

Bacardi B-Live Lifts Festival Award BACARDI Superior Rum celebrated the 10th anniversary of Bacardi B-Live by winning the inaugural Best Party Arena Award at the UK Festival Awards. Bacardi B-Live (formerly know as Bacardi B-Bar) made its debut appearance on the Irish summer music festival circuit at Homelands 1999, and has proved a big hit at both Oxegen and Electric Picnic for the last few years. “This award is particularly meaningful for us as it is the people’s choice award and ultimately the entire B-Live concept has been designed to offer festival goers a fabulous Bacardi experience,” noted Tiernan O’Morain, Market Development Manager of Bacardi in Ireland, who is pictured with Andy Cato from Groove Armada at Lovebox Dublin by Bacardi, held in Malahide Castle in July 2007.

Budweiser Answers The Call BUDWEISER has launched the fourth instalment of its successful ‘Answer the Call’ ATL advertising campaign. Entitled ‘Answering Machine’, the latest TV commercial builds on the good-natured humour and the overall theme of mates getting together for a drink, seen in the previous three ‘Answer the Call’ executions. “With this, the fourth creative in our series of ‘Answer the Call’ TV ads, we’re developing a strong and impactful advertising property for Budweiser,” notes Niall Tracey, Head of Lagers, Diageo.

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RN December07Shop Profile ●

EUROSPAR Shines in Santry Brothers John and Eddie Glennon’s new EUROSPAR supermarket in Santry is a stunning example of the Group’s latest image.

Eddie

and John Glennon’s EUROSPAR in Gulliver’s Retail Park, adjacent to Northwood Business Campus in Santry, Dublin 9, is one of the first EUROSPAR shops in the country to adopt the Group’s latest image.

From the eye-catching architecture of the steel and glass structure in which the shop is located, through to every last detail inside the shop, the quality of the EUROSPAR brand and the professionalism of the Glennons shines throughout.

The Glennon family itself has a farming background. In 1981, John began working in grocery retail for a multiple and Eddie followed in 1985. By 1990, John struck out and opened his first SPAR shop in Artane in Dublin. Not to be outdone, Eddie opened his first shop in 1992.

According to John Glennon, “We have both been working with the SPAR Group for a long time and we have a very good relationship with them. It’s very reassuring to work with a Group that is not only strong in Ireland but that is also such a strong global brand. We have always found the Group to be extremely professional and proactive, constantly developing better branding, improving its image and offering continually improving service to members.”

With such an amicable working relationship, it was no surprise when John and Eddie secured the lease on a prime site situated by the main entrance to Gulliver’s Retail Park and Northwood Business Campus in 2006, that the pair chose to work with EUROSPAR on their first ever joint venture.

Realising Potential It was Eddie, who had an apartment in the Northwood development, who first spotted the potential of the site in 2003 and so the two brothers, together with the EUROSPAR development team, set about realising that potential.

“From the outset, the Group was very enthusiastic about the project,” notes John. “They were very keen to fit out another EUROSPAR with the latest image and they were also excited by the huge potential the size of the Northwood development provided at this location.

“It took about 12 weeks to get the shop up and running,” he continues. “Both Eddie and myself worked very closely with the development team and, as ever, found them to have great advice for us during the design stage. It 24

RN December07Shop Profile ●

was the Group who suggested a large sit-down area at the front of the shop and it has proven to be a really great success. Of course, the Group had a huge input into the final look of the shop and both Eddie and I are very impressed with how well the new image suits the shop.”

Sleek and Stylish Image The sleek and stylish look of the latest Group image was not all that was new to John and Eddie. Introducing the new EUROSPAR package involved the inclusion of elements such as the Treehouse Juice & Smoothie Bar, Kitsu Noodle bar and Insomnia coffee.

“There are a number of elements in the new EUROSPAR package that were not previously present in our stores,” John enthuses. “However, they have all proven their worth in early trading. The Kitsu noodles, in particular, are proving very popular with our customers and although the smoothies seem to be somewhat seasonal, they are still adding to fresh food sales figures that are considerably above the expectations we had before opening the shop.”

With the high convenience hustle and bustle catching the eye at the front of the shop, it is important for a supermarket package to establish a clear identity for the grocery shopping section. In part, this is achieved by use of the Russell & Ryan Butchers brand, another new element of

the EUROSPAR image. The new butcher brand aims to establish a strong identity across EUROSPAR outlets’ fresh meat departments by combining a reassuring old-world look with flawless hygiene and high-tech traceability from farm to fork.

Meanwhile, the size of the shop allows ample space for an off-licence and a wide variety of grocery, including a small homeware element with mugs, pans and cutlery, as well as a selection of book offerings, catering for both children and adults.

Wide Customer Base “While the front of the shop focuses on food-to-go, the EUROSPAR brand is about much more than that,” notes John. ”We provide a full supermarket offering and due to our location, we catch a wide range of customers. We get people finishing shopping in Gulliver’s Retail Park, people going home from work in Northwood and of course the people living in Northwood. The EUROSPAR brand allows us strong visual promotion of value offers, backed up with a cycles of value promotions from the Group. Our current loyalty promotion of Crystal Glassware is proving very popular with regular shoppers.”

Eddie and John have hand-picked the managers in the shop, believing that great customer service is best delivered by well trained, highly motivated staff, backed up by an effective hands-on management system. John explains: “With more than one shop, we have to rely on a solid management team and top quality staff to deliver flawless customer service every time, because without that, we wouldn’t even have one shop.”

Eddie and John Glennon are extremely successful retailers. Their professionalism, dedication and determination is matched FA C T F I L E every step of the way by their longOwner: Eddie & John Glennon time symbol Location: Gullivers Retail Park, Northwood, group partner Santry Dublin 9 and this sucSize: 9,000 square feet cessful workNumber of ing relationship Staff: 40 full time & part time looks set to conOpening tinue long into the hours: 07:00 – 22:00, Mon - Sun future.

25

RN December07Gala Annual Conference ●

Gala Unveils New Corporate Identity The recent Gala Annual Conference saw the convenience group reveal a new identity, as well as announcing plans for 35 new Gala stores in 2008, Gala’s tenth year.

Ireland’s

fastest-growing convenience retailer of the last decade, Gala Retail Services, announced at its annual conference plans to open 35 new Gala stores, creating approximately 400 jobs, in 2008 - the company’s tenth year in business. This represents an investment in excess of €40m by the Group. Gala also took the opportunity to reveal its new corporate identity to the retailers and suppliers attending the conference. To date, five pilot stores have already signed up for the store re-brand and it’s anticipated that a further 30 stores will undergo the transformation in 2008.

Speaking at the conference, Gala CEO, Gary Desmond, said, “We are pleased to announce that our plans for 2008 are for another year of strong growth and investment. This will be the tenth successive year of expansion for Gala. The Group has experienced a period of considerable growth, especial26

Gala CEO, Gary Desmond and Liam Peters, Gala Chairman, reveal the company’s new corporate identity at Gala’s annual conference.

ly in the last three years. We are delighted that, year-on-year, we can report new store openings, more Gala jobs and increased turnover. This success has had a positive knock-on-effect, with an increased number of retailers joining the Gala Group.”

The announcement follows on from a considerable investment of €96m over the past two years. In 2006, Gala announced the opening of 40 new stores and this year, the Group is on target to open its 35th store by the end of 2007.

Commenting on the announcement, Minister for Enterprise, Trade and Employment, Micheál Martin TD, said, “The retail sector continues to play an important role in our economy. In today’s competitive marketplace, Gala’s continued success is to be congratulated. I always welcome the expansion of Irish companies and it’s pleasing that Gala can report increased business with Irish suppliers. I wish Gala every success in its expansion plans, especially in the Group’s tenth year in business.”

Gala is now a substantial purchaser of Irish products, having sourced in excess of €200m from Irish suppliers in 2007 - an increase of €8m on 2006. The Gala brand has seen its retail sales

increase from €1m in its first year of operation to a predicted turnover in excess of €550m in 2008.

New Image “We are marking our tenth year in business with a new corporate identity,” noted Gary Desmond. “The new image reflects Gala’s confidence and is a contemporary and bold statement from the Group. The progressive re-branding will be applied across all visual aspects of our business, from the logo to the stores in which our customers shop.

“The roll-out of the new identity is an important aspect of our future marketing plans. In 2008, we will develop the Gala brand further and raise the profile of the Group through new and exciting marketing initiatives. Our sponsorship of the Gala All-Ireland Camogie Championships will continue in 2008, in addition to a health and wellbeing programme and a number of consumer promotions.”

Mary O’Rourke, TD for LongfordWestmeath, attended the conference and commented: “Gala’s continued success is to be congratulated, especially as the Group is an indigenous Irish company, serving its local communities. I am

RN December07Gala Annual Conference ●

off stiff competition from 230 Gala retailers across Ireland to pick up the most prestigious award of the night. Owned by Eddie Tobin and his wife Annette, Tobin’s Gala was also a category winner, being named ‘Best Pictured at the presentation of the Gala Store of the Year Forecourt Award to Tobin’s Gala, Letterkenny, Co. Donegal, are Liam greater than Peters, Gala Chairman; Eddie and Annette Tobin, store owners; Fintan Morris, director of Morris Brothers Cash & 1500 square Carry, and Gala CEO Gary Desmond. feet’.

Other category winners included very pleased that Gala has chosen the Mulrooney’s Gala in Ballywilliam, Hodson Bay in Athlone to announce its who won ‘Best Forecourt Less than good news. I was a guest at the Gala 1,500 square feet’. Shane Mulrooney annual conference six years ago and it’s picked up the award and was thrilled tremendous to see how much the comto be in the top four stores, especially pany has grown since then.” as this win comes hot on the heels of another accolade - Mulrooney’s Gala Conference News was named as ‘Forecourt and Over 300 retailers and suppliers Convenience Store of the Year C-Store attended the conference, which incorup to 1100 square feet’ at the recent porated a Group update from Chief Ireland’s Forecourt and Retailing Executive, Gary Desmond, a suppliAwards 2007. ers’ trade fair, the Gala store awards County Kildare retailer, Benny and even a casino evening! Keynote Canavan and his partner, Cathy speakers included Brody Sweeney, Duggan, picked up the award for ‘Best Founder of O’Brien’s Sandwich Bars, Food Market less than 1,500 square and Tara Buckley, Director General of RGDATA. Hosted by Sharon Ni Bheoláin, Newstalk’s George Hook entertained the crowd that witnessed Tobin’s Gala, Letterkenny, scooping the top award of the evening, being named Gala Store of the Year 2007.

The award-winning retailer beat

Benny Canavan (left), Canavan’s Gala, Athy, accepts the award for ‘Best Food Market less than 1,500 square feet’ from Peter Flanagan, National Sales Manager, Gala.

Pictured are (l-r): Paul Kiernan, Kiernan’s Gala, Enfield, picking up the award for ‘Best Food Market Greater than 1,500 square feet’ from Michael O’Shaughnessy, National Development Manager, Gala.

feet.’ Canavan’s Gala in Athy has been a flagship store in the Gala portfolio for a number of years and Gala was proud to be able to reward the store for its consistently excellent levels of customer service and commitment to the Group.

Lastly, one of the newest stores in the Gala Group, owned by former Gala

Pictured are (l-r): Shane Mulrooney, Mulrooney’s Gala, Ballywilliam, picking up the award for ‘Best Forecourt less than 1,500 square feet’ from Michael O’Shaughnessy, National Development Manager, Gala.

HQ employee, Paul Kiernan, received the category award for ‘Best Food Market greater than 1,500 square feet’.

Since the outset in 2006, Paul and Regina Kiernan, and their team at Kiernan’s Gala, Enfield, have set out to become one of the best Gala stores in Ireland. In such a short space of time, the store’s achievements have been remarkable, winning both ‘Best Food Market greater than 1,500 square feet’ and the Mystery Shopper award at the annual conference.

Additional Gala store winners: 1. Confectionery Award (sponsored by Cadbury’s): Lunney’s Gala, Carrick on Shannon.

2. Special Merit Award (sponsored by Coca Cola): Dolan’s Gala, Tullamore.

3. Frozen & Chilled Award (sponsored by Green Isle): Kehoe’s Gala, Ballycullane.

4. Food Hygiene Award (sponsored by Irish Merchants): McLaughlin’s Gala, Buncrana.

5. Hot Food & Deli Awards (sponsored by Cuisine de France): Mulrooney’s Gala, Ballywilliam.

6. Wine & Off Licence Award: Hanlon’s Gala, Longford So 2008 is going to be a ‘Gala’ year of growth and expansion for Ireland’s fastest-growing convenience retailer of the last decade, including a Corporate Social Responsibility campaign, a major tenth birthday consumer promotion, extended sponsorship of the Gala AllIreland Camogie Championships and a wealth of new marketing initiatives.

27

RN December07Retail News Interview ●

25 Years of Raising Glasses Michael Barry, Managing Director of Barry Fitzwilliam Maxxium, explains how his company has grown from a small local wine and spirits company to the biggest independent drinks distributor in Ireland, as the company celebrates 25 years in business.

Michael

Barry is in high spirits. Currently celebrating a quarter century in business, he has not only reached all the goals that he first mapped out in 1982, but he has exceeded them. “Even though we set out to be the largest independent drinks company in the country,” he says, “we did not think that we would reach this scale so quickly and so successfully.”

Barry Fitzwilliam Maxxium is certainly at the fore of drink distributors in Ireland. The company’s coup de grace is Mexican beer, Corona, 28

selling in Ireland since 1990. This leading premium imported bottled lager first crossed the MD’s radar in 1986 at New York’s Hard Rock Café.

“Corona was not known in Ireland, but half the bar were drinking it, so I thought it had to have some cache,” he says. “I had a few bottles and loved the whole theatre of the drink.

In the late 1980s, the cutting edge nightclubs and bars in Ireland were looking for premium imported bottles of beer and that was one of the first brands that I was able to get my hands on. It was the first longneck to

be marketed in Ireland and an instant success.”

About five years ago, international trends swung toward the authentic premium imported bottled beer market, so Barry Fitzwilliam Maxxium refocused their attention on Corona and launched a major marketing campaign. The brand has subsequently experienced growth of over 100% yearon-year over the last two years. For 2007, the company anticipates growth of “only” 40%, which is still the kind of performance that puts most other bottled beers to shame.

Jagermeister is another fast-rising star of the Barry’s stable and is becoming a leading player in the spirits category. By the end of 2007, sales of Jagermeister will be 120% up on 2006.

Indeed, last year was up 100% on the year before. “Jagermeister has been a phenomenal success, although more in the on trade than the off trade,” contends Barry. “It hasn’t really captured the imagination of the off trade yet, but we recently launched a 10cl size, which we think will do serious business in the off trade.”

Barry’s business is also bolstered by sales of Absolut Vodka, which the company took under its wing when it scooped exclusive distribution rights for Maxxium in 2004. Consumers are spirited away with the company’s Cognacs (Remy Martin and Courvoisier), Scotch (Teacher’s, Famous Grouse, etc), Port (Cockburns and Taylor’s), Sherries (Harveys, the Gonzales Byass range, etc), and Champagne (Charles Heidsieck, Piper Heidsieck, Pol Roger). The distributors also have a hugely comprehensive range of liqueurs, including the likes of Bols, Cointreau, After Shock, Vaccari Sambuca, etc.

Growing Market Is the MD happy with the way the spirits market is progressing? “We are happy because as well as being an importer, we are also a wholesaler of non-agency brands,” he notes. “We are increasingly living in the era of the one-stop shop – and this is our forte.

Vodka is the most dynamic category in the whole spirits sector at the moment.

We have quadrupled the sales of Absolute over the last four years, while sales of our non-agency vodka has dou-

RN December07Retail News Interview ●

bled in the same period.”

Barry Fitzwilliam Maxxium also has an impressive wine portfolio. For example, three prestigious Australian wines: McGuigan, Tyrrell’s, and Brown Brothers. The company are agents for MontGras, from Chile, and pride themselves on their leading premium French wine, Michel Lynch. “Anything over €10 we regard as a premium wine,” explains Michael, adding, “We have some of the best value premium wines in the Irish market.”

The success of these brands can be largely attributed to Barry’s firm belief in marketing support. The company’s marketing budget for 2007 was over €4m, spent both above and below the line, and events like the Corona Choice Music Festival have done wonders in keeping the brands in the public eye.

Furthermore, the management are renowned for their entrepreneurial streak, looking to overseas markets and trying to replicate international trends at home.

Company History The business has come a long way since Michael Barry set up Barry’s Wines and Spirits in October 1982.

Prior to setting forth on his own, he spent eight years with Murphy Brewery. “I knew that Heineken would probably buy the company out of receivership and I had a good idea that they would not be interested in wines and spirits, so off I went,” he recalls. “Barry’s Wines and Spirits started wholesaling in the South of Ireland – Cork and Limerick initially – then on into Waterford and Kerry, Tipperary, Clare, etc, all in the first four years.”

At the time, Chris Murphy (currently Chairman of Barry Fitzwilliam Maxxium) was fronting Fitzwilliam’s Wines & Spirits. “We were the young turks on the block at a time when it was a very traditional style of business,” says Barry. “We were doing a lot of inter-trading between the two companies. In 1990, we decided that we should merge to become Ireland’s leading independent wine and spirit company.”

In 2004, the company acquired Irish distribution rights for Maxxium brands, but this was not quite the joyous occasion that everyone expected.

While the deal was being finalised, Barry was travelling through Southern Spain in a minibus that crashed. Three of his colleagues at Barry & Fitzwilliam died, while the MD was left bed-bound with three broken vertebrae.

“It was a watershed year,” he recalls today. “We had expanded our warehouse and it was primarily the support of the staff, who had an ‘all hands on deck’ attitude, that pulled us through. Our competitors were helpful, while our customers were very understanding. I suppose with time, over the years, you become slightly cynical.

That incident proved a lot about humanity and mankind to me. Maybe, I am a less cynical person now.”

Future Plans Since the Maxxium deal, the company has gone from strength to strength.

“We look at a year-by-year basis and try not to plan too far ahead,” says Barry. “The most obvious target is a turnover of €100m within the next two years. Our anticipated turnover this year is just under €90m. We want to consolidate our position as the leading independent drinks company and, in terms of specific brands, we would like to see Absolut and Jagermeister in the Top 10 spirits brands in the country.

We would also like to see Corona reach sales figures of over one million cases over the next two years.”

The company’s independent status does bring disadvantages, as well as advantages. Over the next 12 months, the future of Absolut Vodka will come into question, as it is to be sold off by the Swedish government: whether or not it remains part of Maxxium, and

Barry Fitzwilliam Maxxium, remains to be seen. “We have quadrupled the brand over the last four years so we would hate to lose it,” says Barry. “But whether we keep it or lose it, it is out of our hands.”

Inconsistency in Legislation There are other issues at stake for the company, notably the larger supermarkets’ attempts to use alcohol as a loss leader. Barry attributes the reasons behind this to inconsistency on the part of the Government. In December 2002, the Fianna Fáil-led government decided to increase the excise duty on spirits by 40% to curb binge drinking.

The following year, sales of spirits and FABs fell by approximately 20%, “which means that the government are well aware that there is a correlation between consumption and price”. Yet, five years later, a Fianna Fáil-led government decided to do away with the Groceries Order. “There was no logic to both actions. I can understand the increase of 40% if they were consistent but they are being totally inconsistent.

They are having their cake and eating it, by getting the 40% increase on the duty and simultaneously letting supermarkets use alcohol products as loss leaders… as marketing tools.”

Despite his industry bugbears, Michael Barry contends that he loves the business and continues to be involved not because he has to, but because he wants to. “I’m having great fun and I’ve had great fun for the last 25 years,” he says. “If I get another 25 years out of it, they can bury me laughing.”

Michael Barry and the entire Barry Fitzwilliam Maxxium Management team.

29

RN December07The Law and Off Licences ●

Saving on Legal Fees Direct Access to Barristers has the potential to save Off Licence holders thousands of euro when it comes to legal fees, according to Barrister at Law, Cormac O Neill.

The

Bar Council of Ireland has, for in excess of 15 years, authorised certain pre-approved bodies, and their members, to have direct professional access to Barristers in non-contentious matters, via their Direct Professional Access (DPA) scheme. NOffLA have applied to The Bar Council for access to the scheme, and their application is likely be included on this list of approved bodies, which would mean that NOffLA members could, in non-contentious issues, instruct barristers directly without going through a solicitor. The benefits to retailers in this sector are manifold, including savings in terms of legal fees and the possibility of improved communication with barristers, amongst others.

matters for the sale of alcohol.

In addition, however, the advice or opinion of a barrister may be used to sort out, for instance, employment disputes, the retailer’s duty of care to others, health and safety issues, general contract law, planning permissions, company law and taxation matters, to name just a few. In addition, retailers in the off trade frequently find that they may better meet the requirements of lending institutions by obtaining counsel’s opinion to address specific concerns the institutions may have regarding the title of any security which the retailer may have to provide as part of a funding agreement.

Cost Implications The DPA Scheme has the potential to be availed of by off licence retailers in such a way as to avoid significant legal costs, particularly those associated with a solicitor’s office. It is important that the fee is agreed in advance with the Barrister and it should be noted that the fee negotiated will reflect the complexity of the problem, the research to be undertaken, any specific specialisation required and the commercial implications under consideration.

There is a common misconception that barristers’ fees are high, so it’s important to consider all practising barristers incur a similar cost base to most other self-employed professionals: for example, professional indemnity insurance (which is not an insignificant cost), rent of office space, library and research fees and other normal costs of operating a business. The barrister’s fee will reflect these normal expenses and it’s important to consider the benefits to your business of having this professional service.

Advantages Availing of the DPA scheme means that members of pre-approved bodies, which NOffLA may become, will benefit from obtaining counsel’s opinion in a number of different ways and situations, most notably with regard to licensing law 30

Instructing a Barrister Directly Upon deciding to avail of the DPA scheme, the licence holder will be faced with the task of selecting a barrister to instruct. It should be noted

that not all barristers are available to accept DPA assignments. However, The Law Library website can be of great assistance in finding counsel who are willing to accept instruction through the DPA scheme. Enquiries are then made directly to the barrister concerned. The barrister is likely to require instructions to be issued in writing which set out the factual background, identify the precise advice needed and the purpose for which the advice is to be used.

When instructing counsel under the DPA scheme, retailers will be required to provide counsel with all relevant documents, correspondence and other relevant information obtained in an organised file. Often after studying the file and any relevant legislation/case law, the barrister will require a consultation with the client, allowing the barrister to obtain a full understanding of the matters in questions before the opinion is written. Consultations are also often useful to the client to raise any issues before the barrister completes his or her opinion. Once completed, and paid for, the opinion becomes the client’s property to use.

About the Author CORMAC O Neill is a Barrister at Law on the Dublin and Southwestern circuits. He is also a Chartered Management Accountant and worked as a Financial Accountant in Banking for many years. He can be contacted on 087 657 1124 or at the Law Library in Dublin.

Since launching in 1998 and now with over 300 stores open, the Gala Group is maintaining its number 1 position as Ireland’s fastest growing retail symbol group. Operating under three brands, Gala, Gala Superstore and GalaXpress, the Gala retail team have a unique knowledge of the needs and ambitions of retailers and place a strong emphasis on retailer profitability. So, if you want to connect with Ireland’s most dynamic retail group, make sure you call Gala first, on Callsave

1850 600 100.

Your local market

Proud sponsors of the Gala All-Ireland Senior and Junior Camogie Championship

The following suppliers and would like to join with all their retail, wholesale very MerryChristmas and a

Retail News will not be sendingChristmas cards this 32

services to the grocery trade Retail News in wishing and cash & carry clients a peaceful and profitable New Year

year. Instead, we will be making a donation to charity.

33

RN December07Costcutter Conference ●

Great Year for Barry Group The Barry Group reported a combined turnover of €632m in 2007, and opened 36 new Costcutter stores.

Pictured at the Costcutter Annual Conference are (l-r): Jim Barry, Managing Director of the Barry Group; Tara Buckley, Director General, RGDATA; and John McAllen, Commercial Director, Barry Group.

Costcutter’s

delivers real solutions, while making creation of 500 jobs.

Annual an everyday positive difference to the 2007 also saw the renaming of the Conference took place recently in community that we serve.” company from Barry’s of Mallow. The Athlone, attended by 230 delegates.

To achieve this, the Barry Group new name and corporate identity were Speaking at the Conference, Jim Barry, and its retailers must surpass condesigned to reflect the significant Managing Director of the Barry Group, sumer needs, he advised, by: growth of the company since it was reported a combined turnover of €632m established in 1955, as well as ambiin 2007. The Barry Group operates the • Rapidly responding to changing tious plans for the Barry Group as it Costcutter and Quik Pick brands in lifestyles; continues to expand its operations Ireland and also provides a central • Involvement with the local communationwide. billing facility to over 220 affiliated symnity; “Local knowledge and experience bol stores in the Republic of Ireland.

• Execution of service is vital; plus a national support service team Jim Barry’s address to the 230 del• Passion and flair for retailing. adds up to a winning formula,” egates focused on the challenges and explained Jim Barry. opportunities in the marketplace for “It is vital that we understand our He described the joint challenge for wholesalers and retailers alike. “Our consumers,” he noted, going on to outthe Barry Group and its retail partners objective is to increase our scale to betline consumer shopping habits, examas “to provide a vibrant brand that ter respond to market change,” he notining the purchase triggers that ed. “We plan to achieve this make shoppers choose one store through a combination of above another. 68% of conorganic growth, acquisition and sumers move stores due to poor the identification of additional service levels, he warned, while opportunities in the market.” a further 9% are lured by comThe combined investment in petitors.

2007 by Barry Group and its retailers was over €60m, which included the revamp of 22 Surpassing stores and the development of a Consumer Needs number of greenfield sites. 36 The issue of surpassing connew stores will join the group sumer needs was further examby the end of this year, bringing ined by John McAllen, the total number of Costcutter Commercial Director, Barry stores in Ireland to over 121.

Pictured at the presentation of the Costcutter Store of the Group, who covered the areas of Year Award to Costcutter Ballybofey are (l-r): Marty The target for 2008 is the openconsumer confidence, population Whelan, MC; George Doherty, Wayne Johnston, Susan ing of 35 new stores, and a furtrends, retail sector performance Doherty and Michael Doherty, from Costcutter Ballybofey; ther 25 revamps, leading to the and Irish shopping habits. and Jim Barry, CEO, Barry Group

34

RN December07Costcutter Conference ●

store selection trigger, quite closely followed by proximity to the store.

• The great majority of consumers do not change store based on best promotions offered. Onefifth of shoppers would, however, alter their regular brand repertoire due to a promotion.

Irish Shopping Habits McAllen went on to provide some fascinating facts on Irish shopping habits.

• The majority of shoppers take the car for main shopping and have an average journey time of 22 minutes to the main shop. This is higher than the European average.

• Grocery shopping is less of a social activity in Ireland, as 60% of Irish shoppers go alone for the main grocery shopping.

• Habit is, not surprisingly, the main

Independent Stores = Strong Local Economy

The conference was addressed by a number of other speakers, including Tara Buckley, Director General of RGDATA and Shane Daly of ACNielsen.

The RGDATA Director General, reinforced the strength of Ireland’s independent retail sector, which supports 70,000 jobs across the country, as well as sourcing €2 billion of Irish goods every year. Independent shops mean a strong local economy, according to Buckley.

“Grocery shops play a critical role in maintaining vibrant and living local communities – they provide a focal point for daily contact between people, give an outlet for local goods to consumers, support local proColes Costcutter, Trim Rd. Kells were presented ducers and give shopping faciliwith two awards at the recent Costcutter ties to people without cars,” she Conference in Athlone. The store won the noted.

Foodmarket of the Year Award and the best Wine

Mac's Place Costcutter, Limerick Road Cork was named Express Store of the Year. Pictured at the presentation were Marty Whelan, MC; Pat McDonagh, Mac’s Place Costcutter; and Jim Barry, CEO Barry Group.

Consumer confidence, while high in Ireland generally, has fallen slightly since the end of 2006, according to McAllen.

Ireland’s population has grown by 8.2% (approximately 500,000 people) since the last census.

Households have increased from 1.16m to 1.51m, with the average persons per house decreasing from 3.1 to 2.8 persons, meaning that we are now a nation of more households, with smaller families. Just over 10% of our population is aged 65 or over, so relative to other European countries, our population is still quite young, while 11% of the population is now non-national.

The average monthly spent per household has reached €755 on grocery. Consumers spend more than 50% in supermarkets and approximately 44% to top up in the convenience sector.

• 51% of shoppers stated that they know the parts of the store that have the items they want, with a further 24% admitting that they knew where most things were.

increase of 20.71% in 2007 versus 2006. Category management of the Pet Care sector saw even more impressive results, with average increase of 24.07% over 20 retailers.

The star performing category, however, was wine, where over an eightweek period, five test stores saw an average performance increase of a stunning 68%.

Department in a Foodmarket Runner-Up Award.

Pictured at the presentation were Marty Whelan, MC; store owners Padraic and Fiona Cole; and Jim Barry, CEO Barry Group.

According to McAllen, “This is an additional indicator of how it is difficult for a retailer to attract shoppers on aspects other than location. In today’s retail market, there must be strong reasons, other than promotions and price, for an Irish shopper to change their main store.”

The Commercial Director went on to note how utilising category management can make a huge difference to a store’s bottom line. He highlighted recent category management exercises across four categories in a number of Costcutter stores, with astounding results.

In the biscuit sector, 20 retailers who implemented category management techniques saw an average

• • • • •

She described the challenges facing the independent retailer as: Changing Consumers’ Needs; Regulatory Burden; Rising Costs; Big Business Bias; Getting a Return on Investment.

Costcutter Store of the Year The Costcutter Store of the Year 2007 Awards were announced at a gala banquet at the end of the conference. The Costcutter Supermarket Store of the Year 2007 was Costcutter Supermarket, Ballybofey, Co. Donegal. The winner of the Costcutter Foodmarket of the Year was Coles Costcutter, Co. Meath.

Finally, the title of Express Store of the Year 2007 was awarded to Mac’s Place, Mallow, Co. Cork.

35

RN December07Breakfast Time - Cuisine de France ●

Breakfast with Cuisine de France Cuisine de France have an incredible new breakfast range for retailers, under their Pierre’s and Carroll Cuisine brands.

talked about Ham and Cheese Jambon, traditional meat and vegetable Cornish Pasties and many other breakfast products on offer. All products are frozen and fully cooked arriving to stores, therefore minimising cooking times and increasing staff-tocustomer attention time.

As well as Cuisine de France’s category specialists, Pierre’s also has a dedicated breakfast sales brochure, along with POS support.

Carroll Cuisine

The Breakfast Roll from Pierre’s, a perennial favourite with Irish consumers.

Carroll Cuisine has launched a new healthier breakfast alternative. This new porridge is low in fat, a source of protein, and low in salt and

On-The-Go Breakfast A large percentage of consumers eat breakfast on-the-go, making new breakfast range breakfast rolls and other hand-held launched by Pierre’s will meet all snacks ideal for the fast paced retailers’ expectations of high product morning lifestyle. In addition to the quality, great taste, product difference, famous breakfast roll, Pierre’s also product traceability and great holding has pastry fillers such as the much capability. Retailers will be glad to know that Pierre’s new breakfast products are fully cooked, so there is no introduction of raw food risk to the deli counter. This new range is also free from hydrogenated vegetable oils (HVO) and monosodium glutamate (MSG).

The new fully cooked frozen breakfast range encompasses a firm succulent sausage with higher meat content, thick sliced bacon, black and white pudding consisting of oats for great taste and texture, cheesy omelette and crispy potato hash brown.

Combining different breakfast products with various bread carriers provides massive choice for Bagels are increasing in popularity all the time customers wanting something a with Irish consumers, and make for an interesting alternative to the Breakfast Roll. bit more special for breakfast.

The

36

Carroll Cuisine has launched a new porridge, which is low in fat, a source of protein, low in salt and sugar.

sugar. Developed by award winning chefs, the new Carroll Cuisine porridge will give consumers a fulfilling breakfast and keep them fuelled for the morning rush. The porridge is very convenient, easy to use, and is fantastic with honey, banana or raisins as an excellent energy provider!

RN December07Breakfast Time ●

The Big Breakfast The most important meal of the day is also one of the most versatile, including everything from the traditional fry to smoothies, scones and honey.

With

more money in our pockets and less time on our hands, a new generation for whom eating out is the norm is emerging in Ireland, an in-depth analysis of food consumption trends among Irish consumers has revealed. The second ARAMARK/Campbell Catering Food Futures Study, which surveyed over 1,000 consumers aged between 15 and 74, found that it’s not just for dinner or lunch that Irish consumers are eating out, but also for breakfast.

But who buys what for breakfast?

According to the survey, breakfast rolls are most likely to be bought by males (64%), aged 35-44 (69%), social class C2DE (61%) and those from Munster (79%). Breakfast rolls are most likely to be purchased in rural areas (72%), with only 36% of people from Dublin indicating that they purchase them. They are also popular amongst the 15-24 age group (52%);

38

healthy diet - a marginal decline (6%) on 2005.

Galtee

Galtee’s well-established Big One, the next generation in rashers, is sliced extra thick for an amazing taste.

and the 25-34 age group (59%).

Scones (11%) are most popular with women (14%), ABC1s (16%) and people from Dublin (14%). Muesli & Yoghurt (10%) are most popular with women (16%), 45-54 year olds (27%), ABC1s (13%) and those from Dublin (20%). Smoothies (5%) are more likely to be bought for breakfast by women (8%) than men (4%), and are more likely to be bought by C2DEs (7%) than ABC1s (4%).

The growing emphasis on healthy eating, together with increased food consumption outside the home also means that more people expect healthy options, with 55% claiming to seek a healthier option when eating out. However, one in two Irish consumers (53%) feel they have a very

For 40 years, Galtee has been a part of the great Irish breakfast, not just at home but in every corner of the world. Galtee is a household name in Ireland, and its sausages, pudding and rashers remain a firm favourite with Irish consumers. Galtee’s rasher range has recently expanded to include the hugely popular Galtee Thickcut range. Available in Tender Sweet Maple and Hickory varieties, they appeal to those who enjoy a thicker rasher.

In addition, Galtee have gone back to their roots with Thick Cut Rind-On rashers: a thickly sliced, mild cure rasher just like the first Galtee rasher of yesteryear. Also available in the range are: Galtee Tender Cure, Galtee Old Style, Galtee Streaky Bacon.

The now well-established Big One, the next generation in rashers, is sliced extra thick for an amazing taste. Big One sausages have now also joined the range, ideal for big appetites.

No Irish breakfast would be complete without sausages and pudding and Galtee has a whole range of formats of both on offer.

So what can we expect for 2008 from Breeo’s Galtee Brand? Further product launches, with new and tasty products right across the various categories.

Denny According to its manufacturers, Denny is one of those brands that gives consumers a warm feeling inside, evoking happy memories of camping holidays or Christmas morning. It’s part of the fabric of Irish life, passed like a baton from generation to generation.

RN December07Breakfast Time ●

products are all hand-crafted to tradiinternationally renowned tional Irish farmhouse recipes. Using Great Taste Awards in 2005 only the finest ingredients, all prodand 2006, the Associated Craft ucts are free from artificial colourings Butchers of Ireland, at their and flavourings and are available recent Sausage and Pudding nationwide from Brady Family Ltd. Competition, announced Rudd’s traditional sausage as category Supreme Champion Barry’s Tea 2007. The ACBI also named Barry’s Tea is one of Ireland’s leading Rudd’s white pudding as catetea blenders. The Irish tea market is gory winner and gold medalist, worth an estimated €75m at rsp and while Rudd’s black pudding Barry’s Tea claims 40% of all tea was awarded a silver medal. sales. The brand offers consumers the Leading food writers in reassurance of producing consistently national media have highlighthigh quality teas. ed Rudd’s thick-cut back rashBarry's Tea Gold Blend continues ers, which are dry-cured by to be the market leader in the premihand and contain no added um sector of the tea category, while water, as great Denny has continued to invest heavily in the tasting, quality brand throughout the year and 2008 will bring products, while exciting plans for the Denny brand.

Rudd’s Roulade of black and white pudDenny is proud to be Ireland’s ding has been singled favourite sausage for generations. out in national food Denny Gold Medal continues to be the columns as a unique unrivalled family favourite whilst and versatile product.

Denny Select offers additional In response to marflavours and choice for the more ket demand, Rudd’s adventurous taste buds. Denny is also recently introduced a leading the way in the rasher categobutchery range which ry, with almost 200 years expertise in includes dry cure rashevery pack. ers (5kg packs), loose Denny has continued to invest link sausages (5kg heavily in the brand throughout the packs), black, white and year and 2008 will bring with it excitroulade pudding in ing plans for the Denny brand.

1.5kg large diameter chubbs and plain and Rudd’s Barry’s Tea offers consumers the reassurance of producing consistently high quality teas. flavoured dry cure The high quality of the Rudd’s breakbacon backs. fast products range has been widely The Rudd’s range of breakfast Classic Blend offers tea connoisseurs acknowledged. As well as achieving the very best blend of teas available in the world.

In recent years, Barry’s Tea have introduced Decaf, Herbal and Green teas, which have resulted in the brand becoming the strong number two in the non-standard tea category.

Brennans

The high quality of the Rudd’s breakfast products range has been widely acknowledged, with a host of top awards across the range.

Brennans is by far and away the leading bread brand in Ireland and the brand’s leadership is attributed to the bakery’s constant refining of the baking process, updating equipment and improving technology, as well as a consistent investment in branding support. The Brennans brand has been built and maintained by consistent, heavy advertising investment 39

RN December07Breakfast Time ●

The Brennans range has something to suit all tastes and requirements at the breakfast table.

Fruitfield and Little Chip offer a wide selection of marmalades and jams, claiming over 50% of the marmalade market.

colours, over many years and the company flavours is committed to continuing this or preservatives, giving coninvestment. sumers that ‘just squeezed’ Research suggests that breakfresh taste straight from the fast is the most important meal of bottle. Kelkin NFC is made the day. Brennans have a rich from the freshest Seville variety of breads in their portfooranges and contains lio to suit all consumers’ more naturally occurring tastes. Irish consumers favour Vitamin C than juice bread for its versatility and made from concentrate: convenience, its taste, value each 100ml glass counts for money and variety. The as one full fruit portion to Brennans range has somecontribute towards the thing to suit all tastes and recommended daily fruit requirements at the breakfast and vegetable intake. table. Their range of breads includes White, Wholegrain and Wholemeal in both 800g Fruitfield and 400g formats. The Fruitfield, manufactured Natural Recipe Breads are a

by The Jacob Fruitfield delicious range of Crunchy Kelkin NFC Orange Food Group, offers a wide Breads presented in four vari- Juice is a 100% pure selection of marmalades juice product which and jams to enhance any eties: Wholemeal, Bran, contains no added Oatmeal and Rye. Breannans occasion. Fruitfield is the sugar and no also have a popular range of dominant brand in the artificial colours, Sodas, Batches and a Granary marmalade market, flavours or to choose from. claiming 50% market preservatives.

When choosing which share. brand to buy, the key differentiating Fruitfield Old Time Irish factor between brands is freshness, Marmalade consists of a range of marand according to Brennans, their Family Pan in its distinctive premium wax packaging is synonymous with freshness.

malades with intense Seville orange flavour, packed with thickly cut slices of orange peel for full flavour. Old Time Irish Coarse Cut is the single biggest-selling marmalade in Ireland.

In addition to this traditional favourite, there are also Fine Cut and No Peel varieties available.

The Little Chip Marmalade range tends to have bittersweet citrus flavours and finely cut fruit pieces for a smooth spreadable marmalade.

Little Chip Orange Fine Cut is the second best-selling product in the market and so is another must-stock item for retailers. As well as this family favourite, there are also Lemon, Lemon & Lime and Orange No Peel varieties available.

Bonne Maman Bonne Maman, the premium French jam from Boyne Valley Group, has full distribution throughout Ireland and has seen a very impressive 25% growth year to date. For many years, Bonne Maman has claimed uncontested leadership in its market with a

Kelkin Kelkin NFC (Not From Concentrate) Orange Juice makes the perfect breakfast complement, ensuring consumers start the day with all the nutrients and vitamins they need.

Kelkin NFC Orange Juice is a 100% pure juice product which contains no added sugar and no artificial 40

Bonne Maman, with its unique design and ‘home made’ image, really stands out in-store.

RN December07Breakfast Time ●

continuing strategy to sustain growing consumer demand.

Bonne Maman, with its unique design and ‘home made’ image, really stands out in-store and appears very attractive to the consumer. Irish consumers are trading into premium offerings in jam, with an emphasis on quality, and Bonne Maman jams boast a minimum of 50% whole fruit per 100g of jam product.

Bonne Maman is available in strawberry, apricot, blackcurrant, blackberry, raspberry, peach, damson plum, berries and cherries, wild blueberry, orange marmalade and mandarin marmalade flavour. Bonne Maman Jams are a 100% natural product and are free from preservatives, flavouring and colouring. Bonne Maman’s success will continue into 2008 with a heavyweight national promotional campaign.

Boyne Valley Honey Boyne Valley Honey has been available to Irish consumers for almost 50 years and is the most popular brand of honey in Ireland, claiming over 61% market share. A favourite with parents, Boyne Valley Honey is 100% pure and natural and is a delicious and versatile addition to any breakfast. It can be used as a spread on toast, bagels or crumpets, or poured over porridge for a breakfast packed with goodness. For a delicious start to

the day, Boyne Valley Honey is an essential ingredient in smoothies.

Boyne Valley Honey is popular with all members of the family and is available in a range of formats to suit every one, from the 225g tumbler right up to the 907g jar. The innovative no mess squeezy bottles are available in two sizes – 340g and 500g.

Boyne Valley Honey is supported by an extensive marketing campaign, including consumer press advertising, heavyweight radio advertising, sponsorship of Down Syndrome Ireland Honey Days and exciting on-pack promotions.

Capilano 2007 has proved to be another outstanding year for Capilano honey, from BR Marketing. The brand has doubled market share and now claims the number two position in the market ahead of private label (Source: ACNielsen, 2007). To further elevate brand awareness, Capilano has teamed up with DreamWorks latest release ‘Bee Movie’ with a consumer on-pack promotion to win a trip to New York or €5,000 cash. The closing date for the promotion is 29/02/08.

Capilano is 100% pure Australian honey and contains no added preservatives colours or flavours and 0% fat, making it a naturally great way to start the day. The range includes Premium, Organic, Coastal, Outback honey and newly introduced Bee Vital Active +6, which is carefully blended to maintain the unique Manuka Honey properties. It is 100% natural, contains no preservatives and is independently tested and quality checked.

Capilano and Bee Vital add innovation and value to the honey category, making them a must stock for 2008.

Capilano has teamed up with DreamWorks latest release ‘Bee Movie’ with a consumer on-pack promotion to win a trip to New York or €5,000 cash.

Newly introduced Bee Vital Active +6 is carefully blended to maintain the unique Manuka Honey properties.

Breakfast Facts: • Breakfast Rolls are more likely to be purchased by males than females.

• Scones, Muesli and Yogurt products for breakfast are more popular with women than men.

• 55% of consumers expect a healthy option when eating out.

• The growth in smoothie consumption is a new trend as people continue to seek healthier options. 1 in 3 consumers buy fruit smoothies, a market now estimated to be worth in the region of €4m by ACNielsen.

Boyne Valley Honey has been available to Irish consumers for almost 50 years and is the most popular brand of honey in Ireland.

(Source: Food Futures Studies, commissioned from Amárach Consulting by ARAMARK/Campbell Catering.)

41

RN December07Breakfast Time - Cereals ●

Bowl Celebrations Breakfast cereals combine consumer demands for convenience, health and taste in one product, and remain a staple on Irish shopping lists.

Breakfast

cereals have been part of Irish consumers’ lives for decades, with an estimated 95% of Irish households regular cereal purchasers.

If anything, cereals are growing in popularity, along with the move towards both convenience and healthy eating.

Indeed, the combined market for bakery and cereals in Ireland increased by an average of 3.4% between 1999 and 2004, and the market is currently estimated to be worth in the region of €180m.

Healthy eating continues to be an important trend for food manufacturers. Consumers are seeking everhealthier solutions to mealtimes and snacking occasions but, of course, they are reluctant to compromise on taste.

Products like breakfast cereals that tick both boxes (health and taste) are clearly benefiting from this increased level of awareness and companies are maximising this opportunity by increasing their offering of healthy, tasty brands.

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New Kellogg’s Special K Oats & Honey launches in January 2008.

One significant driver this year is nutrition labelling. The demand for simple, honest nutrition information is at an all time high and there has never been a better time for cereal companies to celebrate and promote the nutrition credentials of their products.

have found easy to use.

In addition to helping to pioneer and communicate the role of GDAs in Ireland, Kellogg’s continues to live up to its reputation as a leading innovator by driving an exciting programme of NPD. In the breakfast category, Kellogg’s will launch new Special K Oats & Honey in January. The cereal is a delicious blend of oats and lightly toasted multigrain and wholegrain flakes with a touch of golden honey, designed for people who want a tasty non-fruit, shape management cereal.

The Special K brand has experienced even greater growth within the last year, thanks to the successful launches of Special K Bliss and Special K Sustain. The launch of Special K Oats & Honey will signal the continued growth of the brand and further the variety that retailers can offer their customers in 2008.

All these brands, as well as Kellogg’s new snacks variants, are performing well ahead of targets, thanks to a well-planned platform of

Kellogg’s Kellogg’s is the leading provider of breakfast cereals in Ireland, claiming 60% market share. Kellogg’s was the first company to print nutrition information on packs and has continued to lead the field when it comes to frontof-pack labelling. It was one of the first companies in Ireland to introduce Guideline Daily Amounts (GDAs) on the front of cereal packs, a system that is now supported by more than 25 food companies in Ireland.

The front-of-pack icons for calories, sugars, fat, saturates, and salt give a quick snapshot of how a portion of food fits into a consumer’s daily diet and complements the nutrition label found on the side panel. This is a very simple system that consumers

New Coco Pops Moons & Stars is a multigrain cereal made in fun shapes, with a delicious chocolate-hazelnut flavour.

RN December07Breakfast Time - Cereals ●

trade promotions and above-the line investment.

In January of next year, Kellogg’s is offering consumers free tickets to the zoo as well as the chance to win the opportunity to be a zoo-keeper for the day with its latest on-pack promotion. The promotion, which will appear on packs of Kellogg’s Rice Krispies, Frosties and Coco Pops, kicks off mid-January and runs until March. The winners of the competition, along with family or friends, will have breakfast at Dublin Zoo or Fota Wild life Park, before spending the day with a zoo-keeper and helping them with activities such as feeding and cleaning the animals in their enclosures. They will also receive a goodie bag and an animal adoption certificate.

One of Kellogg’s biggest brands, Kellogg’s Coco Pops, will be adding another exciting innovation to its portfolio in January 2008. Coco Pops Moons & Stars is a multigrain cereal made in fun shapes, with a delicious chocolate-hazelnut flavour. Innovation has proved consistently successful for this brand over the last two years, driving 80% of the brand’s growth.

The new products launched earlier this year, Coco Pops Mega Munchers and Coco Pops Creations, are going from strength to strength.

In the snack sector, Kellogg’s most successful snack brand is also set to receive a sales boost, with the introduction of Nutri-Grain Soft Oaties.

This new product, is made from oats baked into a sweet, soft snack that satisfies consumers’ sweet cravings in a wholesome way, is a first for Kellogg’s and is available in two variants, Oat & Raisin and Oat & Chocolate Chip. Launching in January, they will be available in single and multi-packs. Previous launches such as Nutri-Grain Oat Bakes and Nutri-Grain Elevenses have grown brand penetration and driven sales.

Alpen New from Weetabix comes Alpen High Fruit, a delicious, sophisticated and luxury cereal bursting with enough fruit for just one bowlful to provide consumers with one of their five daily recommended portions of fruit and vegetables.

Alpen High Fruit is joined by new Alpen Nut Crunch, a mouth watering cereal with the goodness of nuts, oats and raisins.

Alpen High Fruit (650g) boasts 42% real fruit, ensuring that one 50g bowl will contribute one of the five daily portions of fruit and veg. High Fruit is a refined combination of Chilean flame raisins, jumbo sultanas, golden raisins, apples, blackcurrants and cranberries, blended with rolled oats and crispy wholegrain wheat flakes.

Alpen Groove bars are a tempting and indulging cereal bar with a burst of flavour in three delicious flavours - Sassy Strawberry, Lively Lemon and Nutty Chocolate.

three delicious flavours - Sassy Strawberry, Lively Lemon and Nutty Chocolate – Groove bars are a unique snack featuring a groove down the length of the bar filled with praline, strawberry or lemon, and topped with a creamy yogurt flavour topping or chocolate. A combination of rice, oats and wheat, with an added groove of flavour, Alpen Groove bars are available in multi-packs of six or individually.

Flahavan’s New from Weetabix comes Alpen High Fruit, a delicious, sophisticated and luxury cereal, and Alpen Nut Crunch, a mouth watering cereal with the goodness of nuts, oats and raisins.

Flahavan’s have been milling oats in Kilmacthomas, Co. Waterford, for over 200 years. Today, as leaders in innovation, Flahavan’ portfolio has been broadened and new products have been launched, concentrating on convenience and flavour, tailored to the demands and lifestyles of healthconscious Irish consumers.

Flahavan’s product portfolio continues to grow at the forefront of the

Alpen Nut Crunch (630g) brings together a delicious selection of nuts, including pecans, cashews and hazelnuts, all lightly roasted to enhance their flavour, combined with delicious oat clusters, crispy wholegrain wheat flakes and juicy raisins. All nuts contain important nutrients, including protein, fibre and vitamins and minerals like folic acid, vitamin B6 and vitamin E, magnesium, copper, zinc, selenium and potassium.

From the same company, newly launched Alpen Groove bars are a Flahavan’s Progress Oatlets, along with their tempting and indulging award-winning Microwaveable Quick Oats, are firm cereal bar with a burst of favourites with Irish consumers. flavour. Available in

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RN December07Breakfast Time - Cereals ●

available in 750g bags and are packed Kelkin with mouth-watering flavours, offering Kelkin Original Muesli is a nutritious consumers an exciting new eating expebreakfast cereal packed with fruit, rience. With distinctive packaging and nuts and seeds. It contains no added clearly marked health sugar, is high in fibre benefits, Odlums’ new and low in salt. Other range of Fruit delicious varieties in the Porridge will have Kelkin Muesli range are great appeal to existTropical, which contains ing porridge conbanana chips, toasted sumers, whilst also coconut and Brazil nuts, attracting new conand Honeycrunch, which sumers looking for is packed with hazelnut greater variety in porclusters and fruit. ridge.

For those looking Lifeforce for a tasty and nutriLifeforce Original Irish tious snack on the go, Muesli has an exciting Odlums new Vita new look. High in comGrain Oat Bars conplex carbohydrates, fibre tain all the goodness and other nutrients, of one bowl of porridge!

Lifeforce Muesli is made Kelkin Original Muesli is a Unlike most snack bars, from the finest Irish nutritious breakfast cereal packed with fruit, nuts and this product benefits grown cereals and speseeds. from Beta-Glucan, part cially selected nuts and fruits. Lifeforce Original Irish Muesli tastes as nature intended, without artificial additives or table sugar. The naturally sweet flavour Odlums is attributed to the finely chopped As the hot oats cereal category condates and finest raisins. Lifeforce tinues to enjoy significant levels of Original Irish Muesli is available growth, Odlums have added two in 1.5kg and 750g packs. A ‘Tried new Fruit Porridges to their range, ‘n’ Tested’ taste panel carried out bringing greater selection to the by the Irish Independent rated category.

Lifeforce Original Irish Muesli as Odlums Harvest Fruit Porridge one of the best mueslis on the Irish combines delicious wholegrain oats market. with seven fruits and grains, New to the Lifeforce Muesli including vitamin rich sunflower Odlums have added two new Fruit Porridges to their range: Odlums Harvest Fruit Porridge range are Lifeforce Tropical Muesli, seeds, juicy raisins, wholegrain rye and Odlums Fruit Porridge Feast. which is certified Fair Trade, and and apricots. Odlums Fruit Porridge of the soluble fibre in oats, which can Lifeforce Gluten Free Muesli, both Feast, with 35% added fruit, contains contribute to lowering cholesterol levels available in 500g. tasty red apple, sultanas and mineral and help maintain heart health. In comLifeforce is celebrating its new rich pumpkin seeds. Both products are parison to other bars on the look with some very exciting promomarket, Vita Grain is low in tions in the coming months, as well as sugar and saturated fat. Vita some very strong Lifeforce advertising Grain is available in two in consumer press and on radio. flavours – Honey and Raspberry – in packs of 6x35g.

Odlums will continue to support its range of oat products Odlums new Vita Grain Oat Bars contain all the throughout goodness of one bowl of porridge and come in Lifeforce Original Irish Muesli, new Lifeforce Gluten 2008 with nationtwo flavours – Honey and Raspberry – in packs Free Muesli and Lifeforce Tropical Muesli: synonymous wide sampling. of 6x35g. hot cereals market, driven by health and convenience. Claiming market share of nearly 60%, Flahavan’s Progress Oatlets, along with their award-winning Microwaveable Quick Oats and Organic ranges, are firm favourites with Irish consumers.

Free from artificial colours and additives and made from 100% wholegrain oats, the intrinsic health benefits of Flahavan’s Progress Oats and the quick and easy to prepare Quick Oats range in a sachet, drum and portable pots make Flahavan’s porridge the ideal breakfast or snack, anytime or anywhere, at home or in the office.

These new products have a strong appeal to consumers who care about their diet and appreciate the positive nutritional value of porridge.

Innovation driven by consumer insight and research is core to Flahavan’s new product development.

The distinctive Flahavan’s taste, quality and new format varieties combine to make Flahavan’s Oats so popular with Irish consumers.

with wholesome, healthy eating.

44

It’s called the Supereasy Supermarket.

But, it could be called the Superinnovative, Superglobal, Superlocal, Superindependent, Superprofitable, Superflexible, Superfresh

If you’re interested in a truly super retail opportunity, contact Declan Ralph on (086) 409 0300 or Deirdre Gallagher on (01) 409 0362 / 409 0300

73810 Eurospar Trade Ad A4.indd 1

09/11/2007 09:55:14

RN December07Value Added Services ●

Increasing Footfall in Your Store Getting more customers into your store is a challenge faced by all retailers.

Increasing the range of services you offer could be just the thing to tempt consumers to your store instead of a rival’s.

Perhaps

the most important thing to get right in any store is footfall – numbers through the doors. The more people you have coming into your shop, the more money you have passing through your tills. While this is an easy concept to understand, translating it into customers at the tills is more difficult.

The deli counter is a big driver of footfall in-store, as are cigarette sales, newspapers, confectionery, soft drinks etc. But there are other ways of enticing customers through your 46

Shrek The Third, one of the top DVDs available from Network Video.

doors, including areas as diverse as DVD rental, digital photo printing, lottery tickets, dry cleaning or bill-pay services. These ‘Value Added Services’ can help to give you the edge, tempting customers into your store rather than that of a rival retailer. In these days of tightening margins, anything that can push your store to the front of consumers’ minds is to be welcomed.

sale supplies are provided. Goods are supplied on a sale or exchange basis.

Rental packages work well for retailers with suitable locations, e.g. local population over 350 people, not served by a video library. A rental stand will earn profits, drive increased footfall in your store, generate significant spin-off sales, and boost customer loyalty.

Simple to install and operate, a rental stand keeps consumers coming back for more! Network Video Leasing Ltd’s experiences over the past 17 years allow them to tailor packages to suit the circumstances of each individual store.

Packages are flexible, and can be adjusted to suit at any time. Stores choose their own new releases, rather than receiving films chosen for them by their supplier.

Network Video do not demand a long term commitment or a fixed term contract, and there is no initial financial outlay.

Network Video

Fujifilm Ireland

DVD retail is one of the fastest growing categories for retailers today.

Convenience stores and independent supermarkets can now take advantage of this growth in DVD sales with a package from Network Video. A range of up-to-date hit titles retailing at attractive price points is available, and retailers earn a solid margin on sales. High quality, compact display stands and point of

There has been a significant increase in the number of digital kiosks instore over the last two years, to serve the increased demand for digital printing. In the last 18 months, demand has grown beyond

The Fujifilm Digital Print Station offers a high margin return with little effort on the part of the store staff.

Network Video offering Tailored Packages to suit Individual Stores.

Up to Date Titles for Rental or Sale Compact Display Stands Sale or Exchange No Fixed Term Contract No Initial Financial Outlay Network Video Leasing Ltd, 2 Loughlinstown Industrial Estate Ballybrack, County Dublin Phone: 01 2826662 Fax: 01 2826532 Email: network@ncv.ie

RN December07Value Added Services ●

the traditional photographic mini-lab trade into the convenience sector. There has been a huge uplift in installations coming from this market sector and expect this growth to continue into the future.

Fujifilm Ireland claims market leadership, and the Fujifilm Digital Print Station offers a high margin return with little effort on the part of the store staff. Fujifilm spend over €4m a day globally on research and development, ensuring that all their Dermot Griffin, Chief Executive, An Post National customers receive state-of-theLottery, pictured with the Christmas Countdown art hardware and software, full game from An Post National Lottery. training is provided at the time of installation and a full POS pack is portfolio to capture consumer interest, provided with all units. including a special game for the Retailer feedback to date has been festive season. Christmas Countdown extremely positive, with store owners was first launched in November 2006 saying that the units have fitted and almost €1m was given away in neatly into their modern convenience prizes. Christmas Countdown offers stores. Bernard McDonagh from players the following great prizes: the EUROSPAR Applewood, Swords, one opportunity to win €100,000 of the first customers to install a instantly, plus hundreds of other Fujifilm kiosk, says the response from instant cash prizes; a total of €1.87m consumers speaks for itself: “The in cash prizes from the full range of reaction from my customers has been instant wins; players can win up to an phenomenal. The Fujifilm kiosk is in amazing eight times on each ticket. constant use and has definitely added An Post National Lottery has to my footfall.” enjoyed strong sales in recent years.

Ian Combe, Imaging Solutions Their 2006 results saw sales increase Manager with Fujifilm Ireland, notes, from €616.4m to a record €679.1m, a “Within the convenience sector, retailers are enthusiastic about new and innovative services which they supply to their customers, and the Fujifilm Digital Print Station fits this profile perfectly.”

10.2% growth in business, representing the highest revenue growth in 15 years, and the generation of a record amount of money for good causes.

Operating costs were maintained at 14.6% of sales, compared to 14.3% in 2005. More than two thirds of their costs are variable and so increase directly as sales increase. These costs of €79.8m in 2006 include agents’ commissions and bonuses of €42.1m (6.2% of total sales).

Rehab Lotteries Rehab lotteries are celebrating 20 years in business next year, with almost €100m raised to date. They have an exciting year ahead, which sees the launch of several new scratch cards games which always prove very popular with consumers. Rehab Lotteries are starting off the year with a bang, with the launch of their new Celebrations game, which will be giving very high payouts, with odds of 1-in-3 on average, as a big ‘thank you’ to consumers for playing their games.

As the market grows and changes, Rehab Lotteries are also changing, with both ticket designs and dispensers moving with the times.

Their new ticket designs are bigger and brighter and offer special features like multi-win games. Their motto is to have lots of wins often.

An Post National Lottery An Post National Lottery Company is licensed to operate the National Lottery by the Minister of Finance on the Minister's behalf in accordance with the National Lottery Act 1986.

Their vision is to provide exciting and engaging lottery games that bring fun and entertainment to everyone, with the aim of being be the best-known brand in Ireland.

Innovation is high on the National Lottery’s agenda, and they are constantly adding new games to their

48

Rehab Lotteries are starting off the year with a bang, with the launch of their new Celebrations game, which will be giving very high payouts, with odds of 1-in3 on average.

Network Video offering Tailored Packages to suit Individual Stores.

Up to Date Titles for Rental or Sale Compact Display Stands Sale or Exchange No Fixed Term Contract No Initial Financial Outlay Network Video Leasing Ltd, 2 Loughlinstown Industrial Estate Ballybrack, County Dublin Phone: 01 2826662 Fax: 01 2826532 Email: network@ncv.ie

RN December07Music Licencing ●

Why You Need a Music Licence A Copyright Music Licence is required for any public performance of copyright music, including use of radios, CD players, tape recorders or televisions in your store.

The

Irish Music Rights Organisation 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 members of the international overseas societies which are affiliated to it. IMRO’s function is to collect and distribute royalties arising from public performance of copyright works. IMRO is also prominently involved in the sponsorship and promotion of new music in Ireland and is continually working on raising awareness of the legal requirements of using music in public. IMRO is a not-for-profit organisation.

In accordance with the Copyright & Related Rights Act 2000, IMRO issues Copyright Music Licenses to music users such as broadcasters, venues, and businesses nationwide. A

licence is required for any public performance of copyright music. A ‘public performance’ is defined as a performance taking place outside the domestic circle. Performances of music in retail premises, service outlets, showrooms etc. are regarded as public performances under copyright law. A licence is needed to cover any use of radios, CD players, tape recorders or televisions or any other music performance that occurs on your premises. The requirement of a licence also extends to the use of privately owned radios and CD players in public areas: for example, warehouses, storerooms or canteens.

Music as a Positive Influencing Factor With competition in the retail industry becoming increasingly intensive, customers must be encouraged to select one retail premises over another. This is where the power of music becomes a positive influencing factor.

Music has the tendency to put customers at their ease, thus encouraging them to spend more time in retail outlets. Therefore, the longer they remain in your shop, the more likely they are to purchase something.

If you are already using music in your shop, you will already greatly appreciate the benefits that can be derived from playing music on your premises. Music, whether it be by means of background music, televisions or live performances, does influence how customers and potential customers view your establishment.

The style and tempo of music you provide contributes to the overall store image of your retail outlet. Just as it

is important to have attractive display fixtures, window displays and appropriate lighting, music too can be used to create a pleasant and appealing ambiance for your customers.

Larger retail outlets have long recognised the influence music can have on shopping patterns. Music with a high tempo can encourage shoppers to move more quickly through a shop, while slower tempo music can have the influence of slowing down customers, with the overall benefit of them spending more money in such situations. (Source: Based on research carried out by Milliman, R.E. (1982). Using background music to affect the behaviour of supermarket shoppers. Journal of Marketing.)

The Benefits of an IMRO Licence By taking out an IMRO licence, you have instant access to millions of musical works, covering all styles and musical tastes, all of which can be used by you to improve the way in which your business operates.

Why The Need For An IMRO Licence?

Musical compositions, just like any other copyrighted material (computer 51

RN December07Music Licencing ●

software, books and videos), are the legal property of their creators. Thus, when you use this material in your shop, you must first obtain permission from the copyright owners to do so.

The cost and time involved in securing the authority for each and every piece of music that you may use in your shop would be an unaffordable and almost impossible task for you.

IMRO offers an easy solution to this problem, however.

IMRO can provide you with a music licence that covers any use of copyrighted music, whether it is by means of a television, radio/CD/tape player or live music etc., that may take place on your premises. Signing an IMRO licence means that you can legally use IMRO copyright music in your shop for just one payment per year. This frees you from the trouble and cost of having to secure permission on each piece of music used on your premises.

Where Do Your Licence Fees Go? IMRO functions as a non-profit making organisation and all distributable royalties collected by IMRO are paid directly to the people who compose, publish and write the music that you are playing in your retail premises. IMRO also uses a proportion of the royalties collected to help foster and develop both new and established music writers through workshops, seminars and sponsorship of a wide variety of projects throughout the country.

By paying your annual licence fee to IMRO, you are enabling songwriters to continue writing songs that you will ultimately use to improve the way in which your business operates.

By protecting music writers’ rights, we encourage and reinforce the creativity that helps everyone develop and prosper.

How Much Does An IMRO Licence Cost?

In general, the level of royalties due is directly related to size of your retail premises. Your royalty charge is based on the total floor area of your premises in which music is audible. Other tariffs may apply if you are using music in other parts of your premises 52

(e.g. music on a telephone hold system or in staff canteens etc.). Thus, smaller retail establishments will typically be paying less than larger retailers, but for as little as a few cents a day, you can select from millions of musical works to enhance the way in which your business operates.

Value for Money IMRO charges have been negotiated and agreed upon with the Irish Hotels Federation, the Restaurants Association of Ireland and the Irish Dancing and Entertainment Industry Association. IMRO will be happy to advise you about the cost of a licence for your particular business. You must get an IMRO licence before musical performances in public begin and if you contact IMRO before you start using music, your first year royalty charge could be signifi-

cantly reduced. IMRO makes it easy for licensees to tap into the power of music with one simple cost-effective licence.

Does it Matter How The Music Is Performed?

The simple answer here is no. Whether the performance is by means of a record/CD/tape player, television, radio, jukebox, video or live performance, an IMRO licence is still necessary.

You might say “but I already have a television licence” or “I’m using my own tapes & CDs”. Possession of a television licence does not cover the public performance of music on your premises. Similarly, when you purchase a tape, record or CD, the price you pay only covers the right to play the music in non-public areas such as your home. Once you play music on your premises, it becomes a public performance of music. Musicians or artists whom you may have engaged or permitted to perform on your premises do not hold an IMRO licence - the responsibility is yours to ensure that your premises is licensed correctly for any music that may take place.

If you are an existing music user or you intend to use music in your company in the future and you have any additional information requirements, contact IMRO’s Licensing Department at (01) 6614844 to discuss your particular licensing needs or visit www.imro.ie.

Phonographic Performance Ireland Ltd Having an IMRO licence may not be enough to cover your legal obligations.

For most public performances of recorded music (including radio and TV), both a PPI (Phonographic Performance Ireland Ltd) and IMRO licence are required.

IMRO represents composers and music publishers, while PPI represents the record companies and performers. PPI collects both of these payments (record companies’ and performers’ rights) in one single licence fee and then distributes the money to record companies and performers through RAAP (Recorded Artists And Performers Ltd). All of PPI's income (less administration charges) is distributed every year to its members and to performers signed to member record companies.

Payment is usually made once a year but may be for shorter periods by agreement, or once-off for a particular event. The cost is related to the nature and extent of the use involved and is assessed in accordance with standard tariffs.

Playing recorded music (including radio or TV) in public without a licence is a breach of copyright, which could result in legal action. Both IMRO and PPI licensing staff regularly check premises for music use.

RN December07FBD CREST Retail Excellence Awards ●

Promoting Excellence in Retailing The annual FBD CREST Retail Excellence Awards took place recently, attended by over 260 leading Irish retailers.

O’Brien’s

Wine, Beer & Spirits’ store at Parkway Shopping Centre, Limerick, was awarded the 2007 National Retail Store of the Year title at the annual FBD CREST Retail Excellence Awards. The award, one of Ireland’s top retailing accolades, was presented to the family-owned firm by Minister of State, Department of An Taoiseach, Tom Kitt TD. A total of 479 stores entered the FBD CREST Retail Excellence awards this year. Over 260 leading Irish retailers attended the Awards ceremony, which was hosted by RTE's Miriam O’Callaghan in Dromoland Castle, Co. Clare.

Commenting on the selection of O’Brien’s Wine, Beer & Spirits as Ireland’s Best Retail Store, David Fitzsimons, CEO of CREST Retail Excellence Ireland, said, “By winning this award, O’Brien’s Wine, Beer & Spirits has shown its ability to deliver something special. The company has beat off some significant competition, and highlighted its position as one of the most progressive and prestigious retail brands in this country. O’Brien’s ability to provide world-class wines

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Pictured are Tom Kitt TD, Minister of State, Department of An Taoiseach; Miriam O'Callaghan, MC; Brendan O'Brien and Mike Curran from O'Briens Wine, Beer & Spirits (Winner National Store of the Year); Michael Berkery, Chairman, FBD Holdings PLC; and Marian O'Gorman, MD of Kilkenny Group and Chairperson of CREST.

and expert knowledge places it above and beyond the traditional off-licence offering, as it continues to expand both its expertise and its brand.”

Stores competing for the top retail award undergo a number of rigorous mystery shopping visits. Each store

owner is required to submit a profile of their store, detailing commercial viability and differentiation from the competition.

What started as a small family firm owned by brothers Brendan, Kevin and Jim O’ Brien, O’ Brien’s

The Winners FBD CREST National Retail Store of the Year O’ Briens Wine, Beer & Spirits, Parkway Shopping Centre, Limerick FBD CREST Best Small Store Eastern Region 2007 The Guinness Store, 15 Westmoreland St. Dublin 2.

FBD CREST Best Small Store Western Region 2007 O’ Brien’s Wine, Beer & Spirits, Parkway Shopping Centre, Limerick FBD CREST Best Large Store Southern Region 2007 Ardkeen Quality Food Store, Ardkeen, Shopping Centre, Waterford.

FBD CREST Retail Company of the Year 2007 Lifestyle Sports FBD CREST Shopping Centre of the Year 2007 Dundrum Town Centre FBD CREST Supplier of the Year 2007 3SixtyMarketing

RN December07FBD CREST Retail Excellence Awards ●

Wine, Beer & Spirits has grown to become the country’s largest centrally owned wine chain. The store at Parkway Shopping Centre opened last June and O’Briens opened their 27th store in Clontarf, Dublin, this November. The company employs over 200 staff in its 27 stores, which extend from Limerick to Drogheda.

O’Brien’s Marketing Director, David Whelehan attributes the success of the company to a number of factors, such as the firm’s core values, commitment to excellence, sourcing and retailing of products and knowledgeable staff. Commenting on the award, Whelehan said, “It is a true embodiment of everything we are trying to achieve, and both this award and our latest stores are a culmination of the brand evolution of the company.”

The 2007 Awards also celebrated the achievements of the FBD CREST Retail Company of the Year (Lifestyle Sports), FBD CREST Retail Supplier of the Year (3SixtyMarketing) and FBD CREST Shopping Centre of the

Year (Dundrum Town Centre).

Awards were presented to winners from the Southern, Western and Eastern regions in the Best Large and Best Small Store categoryies.

Commenting on the success of the Awards, Adrian Taheny, Pictured are Tom Kitt TD, Minister of State, Department of An Marketing Taoiseach; Miriam O'Callaghan, event MC; Kevin Jephson, Director of FBD Ardkeen Quality Food Store (FBD CREST Best Large Store Insurance, said, Southern Region 2007); Michael Berkery, Chairman, FBD “FBD is proud to Holdings PLC; and Marian O'Gorman, MD, Kilkenny Group and Chairperson of CREST. support and celebrate the CREST is a not for profits organiachievements of the dynamic indesation established in 1995 to support pendent retailing sector. Irish indethe Irish independent retail sector. pendent retailers have proved they The company is owned by its 4,000 can rival larger competitors and member stores and receives funding differentiate their business by under the Skillnets initiative, from offering the customer more in the Department of Enterprise, Trade terms of commitment to customer and Employment. service, choice and value.”

Dundrum Town Centre Named FBD CREST Shopping Centre of the Year DUNDRUM Town Centre has been awarded the FBD CREST Annual Shopping Centre of the year. The award was presented to Don Nugent, Dundrum Town Centre Director by David Fitzsimons, Director of CREST Ireland and event MC, Miriam O’Callaghan. The accolade of Shopping Centre of the Year has been voted by shopping centre retailers throughout Ireland.

This award also coincides with Dundrum’s being announced a Ireland’s most productive shopping centre of the year, for a second year running.

Key findings concluded that Dundrum Town Centre is viewed as the most productive shopping centre location in Ireland, by owners of 412 shopping centre stores. Key to Dundrum Town Centre’s success is the favourable rent investment, comparable to the current footfall levels being achieved by the centre.

Commenting on the award, Dundrum Town Centre Director Don Nugent, said, “This is a great honour for Dundrum Town Centre, particularly as voted by centre tenants. It is a particular tribute to the people who had the foresight and vision to fund and develop the concept and the team who are managing its ongoing progress.

Dundrum Town Centre has been a huge success since its opening, with in excess of 30 million visitors having come through its doors to date.”

Dundrum Town Centre was named as the ICSC (International Council of Shopping Centres) European Shopping Centre of the year for 2007 at their European Pictured are Tom Kitt TD, Minister of State, Department of An conference in Warsaw held in April. The centre has now Taoiseach; Miriam O'Callaghan, event MC; Don Nugent, also been short-listed for best Global Shopping Centre, Dundrum Town Centre Director; Michael Berkery, Chairman, FBD which will be announced on 5th December in Arizona.

Holdings PLC; and Marian O'Gorman, MD, Kilkenny Group and Chairperson of CREST. 55

RN December07Karen Meenan’s Top Tips �

Top Tips to Make More Net Profit: How Much Did You Learn?

Retail Consultant Karen Meenan asks 10 questions to see how much you learned from her Top Tips series of articles throughout 2007.

December

is a traditional month for looking back on the year that was, before the madness of Christmas sets in, and it is a good time to plan for the year ahead. During the year, RETAIL NEWS, through the Top Tips series of articles, has focused on a different aspect each month: highlighting difficulties and outlining opportunities to make more net profit.

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2007 was a very strange year for the retail trade in as much as extremely fine weather during April (remember Easter when temperatures soared) gave retailers a false sense of security that we were in for a bumper year. Many convenience store owners bought icecream machines and stocked up on minerals in the hope of super summer sales ahead.

May was election month, which always is slightly different from other months: many people lose their routines for that one month and

RN December07Karen Meenan’s Top Tips ●

follow the canvass trail. June, July and August were wet, wet, wet, and lots of customers simply packed up and left for warmer climes, sick of the Irish weather. This had a huge impact on summer sales in cities and seaside towns throughout Ireland.

September, October and November were exceptionally mild and while retail sales did start to recover with the routine of kids going back to school, when normal shopping patterns returned, it was simply a case of ‘a day late and a dollar short’ in terms of making real money this year.

And so this year we focused on net profit – ways to make more money without having to pray for good weather. This year, we looked at many of the ways we lose money each month without even thinking about it – so for the end of year quiz, here are a number of questions which I hope will refresh your memory and give you another opportunity to make more money – ‘a penny saved is a penny earned’.

1) Reducing Energy Costs (May 2007) Since deregulation in 2001 Energy costs have almost doubled. Place a tick on the statements below which are effective ways of reducing your energy bill for 2008: Install timers on all coolers (mineral, water, beer and wine coolers) so that you don’t have chilled products for sale when the shop is closed.

Get an energy audit from an expert such as Energy Administration Services Ltd to get a practiced eye to look at your rates and tariffs.

Dust off air conditioning units at least once per month to ensure that you are not wasting energy costs in a clogged or blocked unit.

Install a timer on the hot water immersion heater so that deli personnel do not leave this switched on all day.

wants to buy it. There is a certain amount of substitution but the stronger the loyalty to the brand, the more likely you will lose a customer – for example, if you sell out of John Player Blue cigarettes, there is a likelihood that you will lose that customer to another store.

What is the tolerance level for sellouts of certain brands amongst adult customers aged 2540?

Zero tolerance?

One strike?

Two strikes?

Three strikes and you’re out?

pellets: total weekly outlay €40? €10 for energy and €40 for wood chip pellets: total weekly outlay €50?

4) Stop Losing Money (April 2007) On the Newspread invoice, items for which you did not receive credit are written in codes in a column headed RT2.

Can you match the codes overleaf to the actual meaning?

3) Watch Your Waste (October 2007) The Jora 5100 or ‘Digester’ can combine all your deli waste with wood chip pellets and produce an organic feed which can be then sold to local farmers or garden centres.

It takes six weeks to turn deli waste into organic feed, but what are the weekly running costs of the digester? €2 for energy and €8 for wood chip pellets: total weekly outlay €10?

2) Beware Sell-Outs (June 2007)

€4 for energy and €16 for wood chip pellets: total weekly outlay €20?

A sell-out is a product which is not available for sale when your customer

€8 for energy and €32 for wood chip

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RN December07Karen Meenan’s Top Tips ●

22 10 13 21

1) Quantity exceeds allowance 2) Firm Sale Title (Part-Work) 3) Claims Period Closed 4) Claims Period Not Open

5) Tomorrow’s Shopping World Revealed (July/August 2007) Two leading research companies, IGD and EDS, carried out a major retail survey in the UK last year comparing adult customers (aged 20-45) and teenagers (aged 13-19).

The major findings were that adults and teenagers were similar in the buying habits in convenience stores with the exception of two main things. Can you name which two? (a) (b) (c) (d)

Out of stocks Need for Immediacy Customer Service Car Parking

6) Tomorrow’s Shopping World Revealed (July/August 2007) There has been a technological explosion in the last 20 years. Can you match the dates with the key technological advancements?

1) First iPod is released 2) Blackberry is introduced 3) CDs outsell vinyl records 4) First camera phone is launched 5) Tim Berners-Lee invents the World Wide Web 6) Sony launch the Memory Stick 7) SMS text messaging is launched

8) 9)

The first website goes on line All card transactions require chip and PIN 10) The first DVD players and discs are available worldwide

companies such as DynoRod to unblock drains and pipes.

Please rank in importance the most common items found in blocked drains?

(a) 2006 (b) 1988 (c) 1994 (d) 2001 (e) 1996 (f) 1999 (g) 1990 (h) 2000 (i) 1991 (j) 1998

a) b) c) d) e)

8) Hidden Costs (November 2007) What are the most effective solutions to manage deli waste?

7) Hidden Costs (November 2007) The advancement of the food-to-go offering in convenience stores throughout Ireland has also resulted in increased use of plumbers and

About the Author RETAIL consultant Karen Meenan runs her own consultancy business, Results Training & Marketing, focusing on net profit and how to maximise profit for the retailer. For more information, contact Karen on 086 6027711 or by email kmeenan@eircom.net.

Results Training & Marketing When Results Really Matter

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Vegetable Peelings Food Waste Plasters FOGS (Fats, Oils and Grease) Cleaning cloths

(a) Enzymes? (b) Grease Trap? (c) Grease Shield and Filter Shield combination? (d) Regular hand washing? (e) Food Grinders?

RN December07Karen Meenan’s Top Tips ●

The most successful Irish title in this store was the RTE Guide, which ranked No. 3.

STORE B (outside Dublin housing estate lower disposable income) FINDINGS B This store sold 10 copies or more of 158 different titles during 2006.

More than half of all the top selling titles sold were children’s titles (54% of the sales were comics, stickers or children’s part-works).

73 titles were adult titles – again primarily women’s weeklies

9) Top-Selling Magazines Vs BoxOuts (March 2007) A detailed survey was carried out in two different convenience stores which identified which magazine titles were bought during the past year. The most startling fact in both stores was the penetration of children’s titles – one third of magazine sales in one and 50% in the other store were children’s comics, stickers or children’s partworks.

Can you correctly match the store to the findings?

STORE A (South Dublin residential area – high disposable income) FINDINGS A One third of all the titles sold in this store during 2006 were in the children’s category (stickers, comics, children’s collectibles such as E-flyers).

90 titles (which sold more than 20 copies during the year) were adult titles – primarily women’s weeklies.

Of these 90 titles, 31% or almost one third were Irish titles.

Of these adult titles, 14% were Irish titles.

The most successful Irish title in this store was the RTE Guide – ranked 2nd place overall.

10) Stop Losing Money (April 2007) What is the most common amount of money lost due to incorrect newsagency returns each year? (a) €1,000? (b) €2,000? (c) €3,000? (d) €5,000?

ANSWERS: 1) All answers are efficient – best is (b) get an energy audit.

2) 3 strikes and you’re out (except with teenagers – zero tolerance there!).

3) €10 per week running costs to manage the Digester (Jora 5100).

4) 22 = Claims Period Closed 10 = Quantity exceeds allowance 13 = Firm Sale Title (Part-Work) 21 = Claims Period Not Open 5) Adults were concerned about all four.

Teenagers were more concerned with (a) and (b).

6) Correct time lines

First iPod is released (d) 2001 Blackberry is introduced (f) 1999 CDs outsell vinyl records (b) 1988 First camera phone is launched (h) 2000 Tim Berners-Lee invents the World Wide Web (g) 1990 Sony launch the Memory Stick (j) 1998 SMS text messaging is launched (c) 1994 The first website goes on line (i) 1991 All card transactions require chip and PIN instead of signature (a) 2006

The first DVD players and discs are available worldwide (e) 1996 7) a) b) c) d)

Vegetable Peelings 3 Food Waste 2 Plasters 4 FOGS (Fats, Oils and Grease) 1 – most common e) Cleaning cloths 5 – least common but still found!

8) Option (c) is the most efficient – option (f) is banned 9) Store A = Findings A; Store B = Findings B. 10) Option (d) €5,000 per year.

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RN December07Money Matters ●

Tackling a Cash Flow Crisis Carmel Linnane provides some telling advice on what action to take if a cash flow crisis effects your business.

“When a cash crisis hits, do not waste time looking for the cause, the culprit or indulge in denial. You must act and act fast.

When you are out of the jam, then you can, and must, find out what caused the crisis and what remedial action you need to take for the future.”

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Most

business owners have experienced a cash flow crisis at some time or another. However, it can still come as quite a shock when it happens. Business might be booming, in the sense that orders are coming in and everyone is run off their feet. But then you realise cash is in short supply and before you know it, creditors are baying at the door and you have no money to pay wages or utilities.

In the retail business, cash flow problems can easily occur. It is the nature of the business to be heavily invested in merchandise, staff, premises etc. A poor Christmas season with unexpectedly low sales can hit hard, a seasonal calamity can come in any shape or form. Skilful identification of your market is essential to ensure supply and demand balance out: not an easy task, even for veterans of the trade.

Competition is cutthroat and customers, alas, can be fickle.

Over-trading is another common problem, especially for new businesses. You hate to turn down any chance to increase orders, but increasing turnover does not mean you are making a profit. And even making a profit does not mean you can meet your day-to-day cash demands.

Identification Understanding cash flow movements is essential to success, but many business managers do not focus on the right figures. Too often, emphasis is on the bottom line of the Profit and Loss account. Focus is on net income and not cash flow. But net income does not tell you what happens to your cash balance during a given period.

Certain cash flow items will never show up in an income statement.

Other items show up in different periods and in different amounts. So essentially, your income statement will not show you what happened to your flows of cash because your cash flow is made up of more than just profit and loss. It also is affected by such items as: - Accounts receivable; - Inventory; - Accounts payable; - Capital expenditures; - Borrowings and debt service; - Timing differences.

To get a handle on your cash flow movements, you must include all of these elements in the equation.

Crisis Whatever the cause of the cash shortfall, the outcome is the same and you

RN December07Money Matters ●

find yourself in a serious dilemma.

When a cash crisis hits, do not waste time looking for the cause, the culprit or indulge in denial. You must act and act fast. When you are out of the jam, then you can, and must, find out what caused the crisis and what remedial action you need to take for the future.

At the moment of crisis, what is needed is positive action. Don’t fool yourself: insolvency may be round the corner if you do not rectify things fast. Set out a list of actions to identify the extent of the problem and find resolution.

Step 1: Establish the current cash position.

List the balances in all bank accounts and facilities and the level of cash available to the business.

Step 2: You should then prepare a cash flow forecast to include all receipts and payments. This will require a detailed understanding of the flows of cash into and out of the business. The cash flow forecast should normally be prepared on a weekly basis and cover a rolling 13-week period. At the height of the crisis, a daily forecast may be required to allow a proper understanding of the situation, particularly in businesses such as retail, where cash flows fluctuate significantly from one day to the next.

Step 3: Use the shoebox theory, where you centralise the flow of cash. Monitor all receipts and payments into and out of the business to aid your forecasting process. This will enable you to identify the critical cash flows and prioritise and schedule payments on a daily basis.

Step 4: Communicate with creditors. To maintain your goodwill with creditors, you should approach them as early as possible. Try to agree a plan to give you breathing space to get back on track.

Step 5: Talk to your employees and see if you can come to some temporary arrange-

ment with them, or if necessary, it may be required that you reduce numbers. Depending on the level of crisis, you may need to cut your operation down to size quite ruthlessly.

These are decisions that are very hard to make but they must be made fast. If you cannot do it alone, then it may pay in the long run to get professional advice.

Forecasts Most businesses prepare forecasts looking forward maybe three to five years. A crisis occurs when there are unforeseen anomalies in these forecasts. You need to identify any variances from the expectations and the reasons they are occurring. All valid variances should then be reflected in your revised forecasts.

Cash flow forecasts should provide a clear view of the cash position in the short term, which, in a cash crisis, is the critical period to focus on. It will highlight highs and lows, and the requirement for any additional funds.

With better understanding of the flow of cash, you will be able to identify the key sources and outgoings of cash within the business. From this, you can see clearly if inflows are sufficient to meet the outflows, and should

“By acting quickly, you may save the business. Talk to creditors, financiers and staff and be upfront with all.

Hiding the problem will land you in worse trouble.”

also enable you to identify the main areas where cash is leaking from the business.

Trading The next step is to identify how extra cash can be generated. This may come from normal trading activities or from elsewhere. A review of the working capital cycle is advised. Find ways to reduce the amount of cash tied up in the business. Cash might be freed by chasing outstanding debtors, by reducing terms of credit, by negotiating longer terms of trade with suppliers, by reducing stock levels, or by leasing instead of owning vehicles, hardware, even the premises. Other sources of cash might include the disposal of surplus assets or the raising of additional finance.

Advice Sometimes, the task is too big and too daunting to tackle yourself.

Remember, speed is of the essence so if you have any concerns about the prospects for the business surviving, you should seek professional advice.

You must also do what is necessary to protect your personal position in the event that the business becomes insolvent.

In the event of a cash crisis, you need to take the bull by the horns. As quickly as possible, centralise the flow of receipts and outgoings. Establish the current cash position as accurately as possible, set up controls over cash movements, and prepare detailed cash flow forecasts. By acting quickly, you may save the business. Talk to creditors, financiers and staff and be upfront with all. Hiding the problem will land you in worse trouble.

Even if it takes getting outside advice onboard, you must do what it takes to slim down the operation, stem leakage of cash and seek new ways to generate income. Tackling all this with efficiency and speed means you have a real chance of turning the business around. Such positive action will also enhance your credibility and means you stand a much greater chance of gaining the support of the bank, other lenders and shareholders throughout the recovery process.

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We see it all around us, a constantly evolving consumer, an increasingly dynamic retail environment and increased prosperity. How can you be a part of it?

Mace are happy to announce the shop of the future. A totally new shop designed to respond to consumer needs and guaranteed to be a winner with today’s demanding shopper. From changeable window graphics to clutter-free counters for greater access, from a new deli to a customer services centre, Mace have thought of everything.

Early in the morning is a good time to make a great decision, so pour the coffee, wake up to the smell of success and get one of Ireland's finest retail packages working for you now.

RN December07Update ●

Cheerios Childline Breakfast Campaign TV3’S Martin King is pictured with Billy Fahy (4), Eoghain Finnegan (3), Maya Barber (3) and Grace O Kane (2) from the Harcourt Creche, at a special Cheerios breakfast in aid of Childline in the Iveagh Gardens, Dublin 2. The ‘Cheerios Childline National Breakfast Together’ appeal took place from November 19-25 and is part of Childline's 'Time Together' campaign that promotes the importance of families spending quality time together. 1400 breakfasts throughout the country set out to raise €155,000, which is needed to maintain and upgrade Childline’s current service.

Heinz Lifts Repak Award HJ HEINZ were awarded the Repak Best Packaging Prevention Award recently for recycling 100% of all corrugated cardboard, 95% of all plastic used and 99% of all steel and wool used at its Dundalk plant. Pictured are (l-r): Gerry Byrne, EPA; Minister for the Environment, John Gormley TD; Stuart Lawson, Plant Manager, Heinz; Valerie Kirk, HJ Heinz; Mahamed Hamouda, HJ Heinz; and Andrew Hetherington, CEO, Repak.

Oral Health for Dogs CELEBRITY dog owner Lucy Kennedy is pictured with Gus, the little terrier, at the launch of the Pedigree DentaStix Oral Health Campaign for Dogs. Pedigree is the leading petcare brand in Ireland, and the brand’s snacks and treats category is experiencing rapid growth, largely due to its popular Pedigree Daily DentaStix product, which help to keep a dog’s teeth and gums healthy.

SPAR’s Woman of the Year PICTURED at the inaugural Belfast Telegraph Woman of the Year Awards, in association with SPAR, is winner Jo Murphy, coordinator of the PIPS (Public Initiative to Prevent Suicide and Self Harm), with Martin Lindsay, Editor of the Belfast Telegraph, and Bronagh Luke, Marketing Controller, Henderson Group (owners of the SPAR franchise in Northern Ireland). Jo picked up the top accolade and was crowned SPAR’s Woman of the Year at the prestigious ceremony held at Belfast’s Europa Hotel. Bronagh Luke noted, “Everyone in Northern Ireland lives near a SPAR store which is owned and operated by local people, the very people that have been recognised in these, the first Belfast Telegraph Woman of the Year Awards. For that reason, SPAR is so proud to have been title sponsor.”

Boyne Valley Wins IT Award BOYNE Valley were named runners-up in the Retail, Distribution & Manufacturing category at the recent BT Inspired IT Awards Ceremony. The company invested €250,000 in a voice-directed logistics solution for its 55,000 square feet distribution centre in Drogheda, Co. Louth. Pictured at the awards ceremony are (l-r): Fran Egan, Boyne Valley Supply Chain Manager; Gerard Butler, Heavey RF Voice Systems Project Manager; Paula Cain, BT Head of Strategy & Business Planning; Martin Nesbitt, Boyne Valley Warehouse Manager; Michael D’Alton, Boyne Valley IT Manager; and Michael Ahern TD, Minister for Innovation Policy.

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RN December07What’s New ●

Birds Eye Competition Winner

Potato Perfection from McCain

PICTURED are (l-r): Edelle McGrath from Carne, Co. Wexford, with Birds Eye Marketing Manager, Patricia Wilson.

Edelle was chosen as the overall winner of the Birds Eye Waffles ‘How do you dress yours?’ competition. Following a month-long in-store competition, which ran across SuperValu, Superquinn and Dunnes Stores supermarkets, Edelle was chosen from over 3,000 entries as the overall winner. Her innovative use of waffles to create an ‘Upside Down Shepherd’s Pie’ proved a favourite with the judges and secured her the main prize of €5,000.

McCAIN continues to innovate and drive category growth in the frozen potato sector with the introduction of new McCain Roast Potatoes Basted in Goose Fat. These premium roast potatoes in a light crispy coating and basted in Goose Fat are taking frozen roast potatoes to a completely new level and are guaranteed to bring new consumers into the roast potatoes sector. Another addition, McCain Rustic Roasts – chunky roast potatoes with their skins left on – offer consumers a more wholesome and healthier option this Christmas. The McCain roasts range is supported with press, radio advertising, as well as in-store POS and promotions, reinforcing McCain’s reputation for making good, tasty, favourite food from simple natural ingredients.

Real Irish Food THE Real Irish Food Company has launched its new range of high-quality, wholesome foods in Ireland.

All of the products in the Real Irish Food Company range are free from artificial flavourings, colourings and preservatives. The popular pasta sauces include tempting combinations such as Tomato & Jalepeno Sauce and Red Pepper & Garlic Sauce.

The preserves include exciting variants such as Raspberry & Chilli Jam and Strawberry & Orange Liqueur, along with old favourites such as Irish Breakfast Marmalade and Blackcurrant Jam. Within the relishes, salsa and salad dressing ranges are Spiced Orchard Relish, Hot Chilli Salsa and Basil Pesto Vinaigrette.

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New Ad for Guinness Can GUINNESS have launched a dramatic new advertisement for the Guinness can. Entitled ‘Tipping Point’, the advertisement tells the story of how a community comes together to experience an awe-inspiring, intricate toppling sequence, featuring an array of everyday objects, including everything from dominoes to fridges, televisions, matresses and even cars. Shot in an Argentinian mountainside village, Tipping Point was directed by Danish director, Nicolai Fuglsig of Sony Bravia ‘Balls’ fame.

Dairy Cows from Dairygold FOR December and January, Dairygold are running an onpack promotion by ‘giving the gift of a dairy cow’ to help people in Africa and Eastern Europe in conjunction with Bóthar. Dairygold is giving the gift of life to people in third world countries by sending 25 dairy cows.

All consumers have to do is buy a 454g tub of Dairygold Original, Dairygold Light +, Dairygold Heart or Dairygold Omega 3 and money from each pack will be contributed to a special fund in Bóthar.

Perfect Fit Premium Cat Food PERFECT Fit, a new range of premium dry cat food, is Mars Ireland’s first pet care product launch in more than 25 years. What makes Perfect Fit unique is that it’s distinctively tailored to meet the needs and satisfy the taste buds of cats, dependent on their individual lifestage and lifestyle.

The five new variants include: Junior for kittens; Senior for cats older than eight years; In-Home for the feline who doesn’t venture out too often; and Active for the energetic cat, which is offered in separate chicken and fish varieties.

The Perfect Fit brand is supported by a strong advertising, in-store & PR campaign.

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