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June 2007

BIG BIRTHDAY GIVEAWAY INSIDE

50 50

CELEBRATING

SUCCESSFUL YEARS


RN June07Contents ●

■ inside view

50 Years of Retail News This month, RETAIL NEWS is celebrating its 50th birthday. Imagine, half a century ago, in 1957, the very first issue of RETAIL NEWS arrived back, fresh from the printers, in what was then a very different grocery industry in Ireland. For example, there were little or no ‘selfservice’ stores when RETAIL NEWS began: instead, the grocer bought in bulk and weighed everything out into small brown paper bags for each customer. The five decades since RETAIL NEWS first appeared have seen massive changes within the Irish grocery sector, far too many to list here, and many changes in the magazine itself, not least the move from black & white to colour in the 1980s. RETAIL NEWS has been there throughout all the changes, momentous and minute, reporting from the front line on issues like the introduction of the controversial turnover tax in 1963, the collapse of H. Williams and the subsequent ban on below cost selling in 1987, the planning cap on superstore development in 1998, the introduction of the euro in 2002 and the repeal of the Groceries Order last year. RETAIL NEWS continues to be a one-stop shop for the Irish grocery trade, with the latest news, in-depth interviews, sectoral reports and special features on every aspect of running a grocery store, large or small, in 21st Century Ireland. To celebrate our 50th birthday, we look back over the last 50 years of retailing in Ireland (Page 16), together with some of the figures who were at the coalface of change in the industry, including former RGDATA Director General, Michael Campbell (Page 30), the great George Cooke Senior (Page 34), ADM Londis stalwart Joe Lane (Page 38) and the IGBF’s Tim Nolan (Page 42). However, we want you to celebrate our birthday with us, with the chance to win one of a range of amazing prizes in our fabulous 50th Birthday Competition (Page 52). I would like to take this opportunity to thank all the groups, suppliers, advertisers, editors, journalists, sales and production staff and everyone else who has, and continues to, contribute to the ongoing success story that is RETAIL NEWS. “Celebrating 50 years serving the Kathleen Belton, Editorial & Marketing Director.

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

Advertising Executive: Caoimhe St. John

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

Printed by: Future Print

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RN June07Contents ●

Contents 50 50

June 2007

CELEBRATING

News 4 Box-outs coming to an end? Plastic bag tax up to 22c; Four new Gala stores open in Clare.

6 Repak offers new compliance option; Irish consumers choose premium products; Britvic buys C&C. 8 Musgrave Group reports strong growth; Conor Whelan named new CEO of Fresh; Off licence sales growing; Superquinn enjoys strong performance.

10 Tesco goes green; Mace stores lift Excellence Awards; Molloys offer online sales.

Retail News 50th Birthday: A Half Century of Retailing 16 RETAIL NEWS looks back over the last five decades of the grocery sector in Ireland.

16

SUCCESSFUL YEARS

Retail News 50th Birthday: Michael Campbell 30 The former RGDATA

the year, and this year covers both the senior and junior championships.

Director General on the changing face of the Irish grocery sector.

Retail News 50th Birthday Competition 52 Your chance to win one

Retail News 50th Birthday: George Cooke 34 The founder of George

of a range of incredible prizes, including a 42” Phillips LCD TV, a luxury getaway break in Ireland, a Sony Ericsson music phone and Olympus digital camera, and many more.

Cooke & Co. reflects on years gone by.

Retail News 50th Birthday: Joe Lane 38 The former ADM Londis Managing Director enjoyed an illustrious career and witnessed vast changes in the grocery trade.

Retail News 50th Birthday: Tim Nolan 42 Tim Nolan, founder of the Irish Grocers Benevolent Fund, on the long-lasting lifeline for Ireland’s grocery sector.

Karen Meenan’s Top Tips 54 Your customer will give you just three chances to get your sell-outs sorted or they will leave your store permanently, writes retail consultant Karen Meenan.

Money Matters 61 Carmel Linnane advises on how marketing can make a massive difference to store performance, even for smaller shops.

Gala Sponsorship 46 Gala’s sponsorship of

The Retail News Interview 68 James Beaton,

the All-Ireland Camogie Championship marks one of the biggest sponsorships of

Chairman and co-founder of Discovery Foods, on how the company are at the front-

68 line of adventurous tastes.

In-Store Services 91 Introducing value-added services for your customers could give your store a competitive edge.

Shelf Life 104 All the latest news and gossip from the trade.

Regulars 12 Industry News 48 Drinks News 50 On the Vine 65 Update 102 What’s New Sectoral Reports 70 Bread 76 Pet Food 82 Male Grooming 87 EPoS 98 Canned Food 3


RN June07News ●

Box-outs Coming To an End? BOX-OUTS – magazines and newspapers of random content and quantity that are delivered to retailers – might finally be coming to an end, after the representative association for newsagents issued a number of submissions and publishers and distributors “replied positively”. The Convenience Stores & Newsagents Association (CSNA) wrote to the National Newspapers of Ireland, the Periodical Publishing Association of Ireland, the Regional Newspapers Association of Ireland, Newspread and Easons, illustrating the problems that face newsagents on a daily basis. According to Vincent Jennings, CSNA Chief Executive Officer, all these organisations replied and agreed the importance of implementing an industry standard agreement. “We have been seeking various ways of trying to persuade the industry that it is far better to have win-win arrangements rather than people being ticked off with magazines,” Jennings told RETAIL NEWS. “Over the last couple of years, magazines have not been profit generators within shops. Areas such as deli or confectionery are assured: order X amount, X amount is delivered, and you can then sell X amount. With boxouts, retailers have no input into what comes into their shop. Once you open an account with a wholesaler, you are at the mercy of what they choose to give you.”

The CSNA is seeking to partially emulate the UK, where the Office of Fair Trading oversees an industry agreement between retailers, publishers and distributors. “We are hoping for an agreement that will settle our concerns over box-outs, invoicing, producer responsibility and waste management,” contended Jennings. While the CSNA hopes that some of these concerns will be settled in the manner of the UK industry, some problems require indigenous solutions. For instance, in the UK there are no direct contracts between retailers and publishers, whereas in Ireland, the Irish Independent, Irish Times and Irish Examiner have direct contracts with the retailer. “The devil is in the detail,” continued Jennings. “What level of cooperation we are going to have and how long it will take to bolt it all together is still unclear. UK publishers are putting pressure on distributors here – Easons and Newspread – to agree to the solution that we are proposing. Indigenous distributors are also under pressure from the Department of Environment in regard to waste. The agreement will have to be binding. We will seek the Department of Enterprise

Vincent Jennings, CSNA Chief Executive Officer.

to have an oversight in this matter, in much the same way as the OFT operate in the UK.” Jennings hopes that newsagents’ needs are “introduced soon”, ideally over the next couple of working months. Meanwhile, the CSNA recently held its AGM, electing Philip Keegan, Carrickmacross, as the new President.

Plastic Bag Four New Gala Stores in Clare Tax Up to 22c THE plastic bag tax is set to increase from 15c to 22c per bag, from July 1 2007. The levy, an environmental incentive, was initially introduced in March 2002, decreasing plastic bag per capita usage from an estimated 328 bags to only 21. This brought about a 95% decrease in plastic bag litter. However, as shoppers became more comfortable with the tax, they started to purchase bags once more. In 2006, according to the Central Statistics Office, plastic bag usage rose to 30 bags per capita. 4

UP to 25 new jobs will be created in County Clare over the next 12 months with the opening of four new Gala stores, Clonlara Wholesale Distributors Ltd, the official Gala wholesaler in County Clare, have announced. The new stores in Drumquin, Miltown Malbay, Newmarket-on-Fergus and Doonbeg represent a major expansion of Gala’s operations in Clare, which has five other stores around the County. The first of the new stores was officially opened at Drumquin, near Ennis on Saturday, June 9. Pictured at the opening are TV star Hector with Sean and Martina Carrig, operators of Carrig’s Gala Drumquin.


RN June07News ●

Repak Offers New Compliance Option RETAILERS who are newly obligated under the Waste Regulations are being offered a compliance option that is cheaper than the registration cost of self-compliance with local authorities. The changes to the Regulations are being introduced by the Department of the Environment, Heritage and Local Government, and will lower the De Minimis threshold from 25 tonnes to 10 tonnes. Under the new rules, retailers who produce over 10 tonnes of used packaging and have a turnover of over €1m will be obliged to ensure the recycling of that packaging. Darryl Crowe, Sales & Marketing Manager at Repak (the voluntary member-based packaging recycling scheme) told RETAIL NEWS that his organisation had created an easy mechanism for “independent retailers and other businesses at the end of the distribution chain who do not make clear packaging decisions”, to become compliant with the new packaging regulations. “The Repak scheme is more proportionate in its allocation of cost,” he stated. “Once you pay your fees, you are saved an awful lot of cost and work.” “Independent retailers – SPARs, Centras, SuperValus – account for less than 4% of our total fee income, although they are about 48% of our total membership number. It is the CocaColas, the Tescos, Dunnes Stores, Kellogg’s, of the world that contribute the major fees to Repak. Most Repak schemes are focused on major brand holders and importers – they pay the bulk of fees into Repak. These packaging regulations are about trying to spread the burden of responsibility.” The Packaging Waste Recycling threshold is being reduced after a Government report recommended that more companies should be bought into the funding net. The changes will also help to spread the funding net wider than the existing 2,300 companies currently funding packaging recycling, either through Repak or self-compliance. “A lot of larger companies had been ignoring the packaging regulations, previously claiming not to be obligated 6

because they produced 24 tonnes and are competing with someone on 28 tonnes,” commented Crowe. The threshold reduction not only affects many independent retailers, but also the likes of hotels, pubs, pharmacies and restaurants. Under the Repak scheme, all newly obligated companies can sign up for an annual fee of €400; there is no joining fee or back fee; annual fee increases are capped at a maximum of 5% for three years; members will not have to produce statistical reporting; companies receive immediate compliance under the Regulations; and members receive access to all Repak services and programmes (such as the Best Practice Awards, Packaging Prevention Programme, and Tidy Towns). The alternative, self-compliance, is a bumpier road, explained Darryl Crowe. “If you go down the route of selfcompliance, you have to pay €500 per business, per business address, per local authority,” he said. “Then you have to pay fees based on the amount of packaging that you put on the market. Then you have to create management time to put together packaging statistics each quarter! It is extremely onerous on a monetary basis.” For more information, visit: www.repak.ie or phone 01 467 0190.

Irish Consumers Choose Premium Products PREMIUM products are on a high, according to new consumer research from Glanbia Consumer Foods. Glanbia recently revealed that 58% of shoppers are prepared to pay higher prices for homemade and Irish products, putting quality before quantity and going the extra mile to find top-notch food or drink. A further 86% said that quality was the most important factor in judging value for money. “The Irish Shopper in 2007 is someone who is focused on quality, is health conscious and likes to buy locally produced products,” noted Colin Gordon, Glanbia Consumer Foods CEO. “Irish shoppers want to buy and value Irish brands and the responsibility for Irish food companies is not only to satisfy that expectation but exceed it in terms of choice, innovation and quality that is guaranteed every time.” Glanbia’s survey also revealed that food traceability is a strong issue for Irish consumers, with 83% expressing preference for products that feature Irish traceability labels. Unsurprisingly, health issues are also high on shopping lists across Ireland: 72% of consumers indicated that they would like to see more healthy food-to-go products in convenience stores. 80% preferred branded products to a supermarket’s own label items. The good news for smaller retailers is that 55% of consumers are still in favour of locally owned shops.

Britvic Buys C&C BRITVIC, the UK Pepsi franchisee, is securing a foothold in Ireland through the purchase of the soft drinks division of Irish group C&C. The deal, valued at €249m, will put brands like Ballygowan in Britvic’s hands, alongside the Irish rights to Pepsi and 7UP. The deal is likely to bolster an Irish soft drinks market that is currently growing at 2%.


RN June07News ●

Musgrave Group Reports Strong Growth MUSGRAVE Group has recorded another successful year in business. In 2006, the group – which is spread across Ireland, Northern Ireland, Great Britain and Spain – achieved a turnover of €4.6 billion. Of this, €4.1 billion is attributed to retail brands and €0.5 billion to cash and carry and foodservice. This was the Group’s eighth year of successive profit growth, marking an annual increase in profit before tax of 17%. Statistics for Ireland were particularly buoyant, as the Group made retail sales of €3.4 billion (in an overall grocery market estimated to be worth between €13 and €14 billion). Of this, SuperValu retailers recorded sales in excess of €2 billion, up 11%. Centra retailer sales were €1.2 billion, up 17%. As part of the announcement, Musgrave elaborated on its investment

in local economies throughout Ireland. For example, the Group has created over 2,000 new jobs in towns and communities across the country, taking its total employment to over 24,000. The Group invested €160m in existing and new retail developments, opened 47 new Centra stores (including the 400th Centra store on Parnell Street, Dublin). During 2006, SuperValu exceeded €2 billion in retail sales for the first time, while opening 11 new stores and revamping a further 16. Musgrave invested €5.4m in local and national sponsorships, initiatives and charitable causes in 2006 (including the National Tidy Towns in Ireland, SuperValu Kids In Action, Our Lady’s Hospital for Sick Children Crumlin and the Irish Cancer Society) and is working to reduce its environmental impact, signing a green electricity deal with Energia.

Superquinn Enjoys Strong Performance SUPERQUINN are celebrating improved trading performance, largely thanks to refurbished stores in Blanchardstown and Lucan, for the financial year ending April 30, 2007. The retailer now plans to refurbish a further five sites, at a cost of €60m for the year, by April 2008. Adding to their joys, Superquinn owner, Select Retail Holdings, have announced that Friends First F&C has agreed an investment of €142.5m in the Superquinn property portfolio. “These are two big steps forward for Superquinn,” said Simon Burke, Superquinn Chairman. “In the last year, we refocused on meeting our customers’ food needs and introduced a revolutionary new design format to Superquinn stores. Achieving a turnaround in trading performance gives us all the confidence to increase our commitment to new stores and refurbishments and the investment by F&C is a huge help in allowing that commitment to be financed.” 8

Conor Whelan Named New CEO at Fresh

FRESH, The Good Food Market, is pleased to announce the appointment of Conor Whelan to the position of Chief Executive. Conor brings significant grocery retail experience to his new role, having been Managing Director of BWG Foods, operators of the SPAR, EuroSPAR and Mace brands in Ireland, for eight years. The appointment follows the announcement by Fresh of the opening of two new stores in Dublin, and of its ambitious plan to expand its retail network further over the next three years, which Whelan will lead.

Off Licence Sales Growing

Superquinn Executive Chairman, Simon Burke.

SALES of alcoholic drinks in off licences are now growing at three times the rate of sales in the on-trade, according to ACNielsen. Off-trade alcohol sales grew by 10% in the two years to March 2007, while the corresponding rise in on-trade sales was just 3%. However, the on-trade still accounts for almost 74% of all alcohol sales by value. Vodka was the big winner, growing its sales by 12% over the two-year review period (with a massive 21% sales growth in the offtrade), while cider (up 8%) and lager (up 7%) also recorded strong growth. Stout sales, however, declined by 4% and sales of ale fell by 2%.


RN June07News ●

Tesco Goes Green TESCO Ireland has launched its Strategy on the Environment and Carbon Reduction, the company’s commitment to minimise its carbon footprint and to help address crucial environmental concerns. Tesco plans to introduce 100% recycling of store waste and packaging by 2010, which will see more than 24,000 tonnes of waste recycled each year. The amount of packaging used throughout its business will be reduced signifiTony Keohane, CEO, Tesco Ireland, is cantly. Re-usable ‘green crates’ and pictured with Tesco Clare Hall employees ‘retail ready’ packaging are to Fiona Tobin and Victor Iljin as they gather replace secondary cardboard and up waste packaging before it leaves the plastic packaging for fresh produce store for recycling. and other grocery items throughat a location to be decided, will be the out its supply chain. In addition, the first ever supermarket in Ireland built company will be trialling composting from recyclable materials, including across all stores, which will see all fresh wood, recycled plastics and other green produce and food waste segregated and materials. recycled as plant and animal feed A range of customer initiatives are respectively. also planned to facilitate pro-active enviThe multiple is also planning a €30m ronmental thinking. ‘Compostable’ packinvestment to reduce in-store energy conaging, the first of its kind in Ireland, will sumption by 50%. This initiative will see be available on a number of organic fresh the introduction of more energy-efficient product ranges such as mushrooms, technology across the 95-store network, onions and carrots. Environmental including energy efficient ovens, refriglabelling indicating packaging ‘recyclaeration units, light timers and motion bility’ will be applied to all Tesco own detectors, while ‘Energy Champions’ will brand products, while an aircraft symbol also be appointed to all stores. will identify air freighted items. Tesco “As consumers, businesses and retailhas also set 2010 as a target date to ers we all have a role to play in addressreduce the amount of packaging on all ing the environmental challenges that own label brand products by 25%. face us all,” noted Tony Keohane, Chief There are plans to introduce a numExecutive, Tesco Ireland. “Today we are ber of automated recycling machines at announcing a number of practical steps some stores before the end of the year. on how Tesco will be making a differThese units will sort and crush waste on ence on these issues. This is not a short the spot and minimise transport to recyterm measure and we will continue to cling facilities. adapt our way of doing business to Tesco Ireland will be investigating ensure that these steps are sustainable the feasibility of introducing solar enernot just for the present but for future gy, wind turbines and sustainable powgenerations as well.” er where possible across its business, as The company also plans to build the well as introducing bio fuels to its dismost environmentally-friendly store in tribution fleet. Ireland by 2009. The new store design,

Planning Ahead DUNNES stores is the anchor tenant for the new Charleville Town Centre retail scheme in North Cork. The multiple will settle down in a 5,000 square-metre shop and is likely to open its doors in October 2007. The Centre, located off the N20 (linking Cork and Limerick), will include 17 shops between 75 and 330 square metres and 450 parking spaces set out over three levels. 10

Mace Stores Lift Excellence Awards MACE’S position as one of Ireland’s most prominent convenience groups was recently confirmed when 64 branded stores were presented with Excellence Awards at a ceremony in Athlone, Co. Westmeath. Mace retailers across the country underwent a rigorous programme that assessed stores on criteria such as shop presentation, food safety, and legal compliance. A combination of surprise audits and mystery shoppers also formed part of the judging criteria. In presenting the awards Peter Kealy, Mace Chairman, said: “The intensity of competition within the symbol group sector requires that the highest standards be maintained and improved upon where possible. It is extremely encouraging to see the standards in our stores improving year on year, and we are delighted with the ongoing commitment to quality and hygiene exhibited by our retailers. The winners have recognised that Mace is judged by our customers on the standards and service in all of our shops.”

Molloy’s Offer Online Sales THE worldwide web is the next stop for Dublin-based Molloy Group. The company’s recently launched site www.molloys.com - features online shopping, information on special offers, helpful wine hints, beers of the world and competitions through webtext text messaging. “We are using ‘webtext’ in two ways,” explained Neal Plunkett, Marketing & Sales Manager for The Molloy Group (pictured). “Our customers can now input a name and mobile number to enter competitions on our new website. Also, at shop level, our customers can enter competitions by texting ‘Molloys’ to a pre-assigned mobile number.”


RN June07Industry News ●

National Lottery Launches ‘The Trump Card’ PICTURED at the launch of ‘The Trump Card’, the exciting new Scratchcard and TV game-show from the National Lottery are (l-r): actor Johnny Murphy as ‘The Trump Card’; Laura Woods, presenter on the all-new TV gameshow on RTE; and Dermot Griffin, Chief Executive of the National Lottery. Each week on The Trump Card TV gameshow, 52 players from all over Ireland will compete in-studio for the chance to win €250,000 in the final game’s head-tohead play-off.

Bulmers Sponsors Original Artists BULMERS have announced their sponsorship of the ‘Original Artists’ programme of the Clonmel Junction Festival. Featuring a wealth of Irish and international talent, Bulmers Original Artists Series presents a programme of rock, folk, trad and world music, featuring Director, Delorentos, Royseven, Foy Vance, Eleanor McEvoy, Elena,

Havana Son and a wonderful selection of some of the best bands from Africa. Running from July 7-15, the Junction Festival takes over the town of Clonmel, celebrating theatre, dance, music, art and comedy with acts coming from all over the world. Pictured at the launch are Ann Meaney, Bulmers, and members of Director.

Dolmio’s Taste of Italy DOLMIO has widened its appeal this month by breaking into the premium pasta sauce market with its first launch of 2007 – ‘Tastes of Italy’ - a range of premium pour-over pasta sauce inspired by four regions of Italy: Sorrento (Cherry Tomato, Basil & Parmesan), Calabria (Sun Ripened Tomatoes, Pepperoni, Garlic

& Chilli), Rome (Sun Ripened Tomatoes, Fresh Cream & Ricotta Cheese) and Tuscany (Sun Ripened Tomatoes, Parsley & Chianti). Pictured at the launch of Dolmio Tastes of Italy are (l-r): Olivia Caslin, Dolmio Product Group Manager; Italian celebrity chef Giancarlo Caldesi and model Georgia.

M&S Unveils New Liffey Valley Store MARKS & Spencer’s redesigned store in Liffey Valley was unveiled recently, with a traditional ribbon-cutting ceremony led by the Store Manager, Gordon Scott and his team. The 101,000 square feet store re-launched under Marks & Spencer’s new signature style with contemporary interior design, brighter lighting, and easy-to-navigate walkways. The food hall has undergone a number of changes, including a bakery with patisserie counter, offering a wide selection of freshly baked breads and pastries. Other highlights include a new and improved Café Revive, serving hot food including toasted sandwiches and ciabattas, as well as a range of hot drinks including Fairtrade tea and coffee. Pictured at the official opening are models Aoife Coogan and Sarah Morrissey.

Adams Vintners to Distribute Fairtrade Wines ADAMS Vintners have been appointed the Irish agents for the award-winning Stellar Organic Fairtrade wines from South Africa. The Stellar winery is situated north of Cape Town and was the first organic vineyard and cellar operation to receive Fairtrade accreditation. Fairtrade companies undertake to empower economically disadvantaged workers and ensure that a fair price is paid for the product along the whole supply chain. As well as free housing and health care, a percentage of the wholesale price of the wine is paid directly back into the Stellar Fairtrade Workers Trust. The Stellar Organics range includes Sauvignon Blanc, Merlot and Shiraz. For more information, see www.adamsvintners.com. 12


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RN June07Industry News ●

SuperValu Partner HB Ice Cream Sunday THE fifth HB Ice Cream Sunday took place on Sunday, May 27, with thousands of people enjoying ice cream at parties all over the country. SuperValu were the official retail partners of the event and the event is expected to raise €500,000. Pierce Brosnan, the Patron of Down Syndrome, was again the voice and face of HB Ice Cream Sunday. All proceeds raised will go towards the on-going development of the National Resource Centre. Pictured at Twomey’s SuperValu in Deansgrange are: Pierce Brosnan lookalike Daniel Lengyel; Sheera Delaney, aged 12 from Sutton; Luka O’Brien, aged 4 from Sandycove; and John Kiely, Manager, Twomey’s SuperValu, Deansgrange.

Converting Opportunities to Business PICTURED at Bord Bia’s Marketplace Ireland held in Croke Park recently are Maria Burke, Jelly Bean Factory; Angela Kennedy, Chairman, Bord Bia; and Luc Vandevelde, MD of Change Capital Partners. The event showcased leading Irish food and drink companies to an audience of 220 International buyers with a purchasing power of €135 billion. Marketplace Ireland provided an unparallel platform for Ireland’s largest indigenous industry currently experiencing double digit growth to further convert opportunities to business.

100th Daybreak Store Opens in less than 18 months THE official opening of Daybreak’s 100th store took place at Clifford’s Daybreak, College Road, Cork City, recently. Paul Kerrigan, Delivered Convenience Retail Director, noted “This is an important milestone for the Daybreak group. We have opened 100 stores in less than 18 months, so we can safely say we’re Ireland’s fastest growing symbol group. This success is a ringing endorsement of the strength of our offering to both retailers and consumers and we’re confident we will continue this success into the future.” Pictured are Anne Clifford, store owner; Paul Kerrigan, Delivered Convenience Retail Director, Daybreak; and Diarmuid O’Sullivan, Cork senior

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Fresh Convenience Supermarkets to Expand THE Fresh supermarket group has announced plans to expand the chain from three to 20 supermarkets over the next three years, which will represent a combined investment of over €100m. The announcement was made at the official opening of the group’s two newest convenience supermarkets in Dublin; South Docks Plaza and Northern Cross, Malahide Road. In addition to the three stores currently operating, the group will add a further two stores over the next six months in Dublin city and then a further fifteen by 2010, in and around Dublin and larger urban areas. The expansion is expected

to create 750 additional jobs and retail revenues are expected to reach €150m per annum. Fresh Chief Executive, Conor Whelan is pictured (left) with Fresh Chairman Noel Smith.

Barry Group Golf Outing JIM Barry (centre), MD of the Barry Group, is pictured at the Barry Group Golf Outing to Fota Island Golf Club in Cork, presenting the prize for second place to (from left): Andrew Meagher, John Player & Sons; Billy Murphy, Horgan and Barrett; John Colton, Gallaher (Dublin) Ltd; and Ray O’Driscoll, CFP of the Barry Group.


50 50

CELEBRATING

SUCCESSFUL YEARS

A Half Ce Reta On the eve of its 50th birthday, •

RETAIL NEWS casts its eye over the last half-

century in the Irish grocery sector.

(VG), giving the Musgrave Group increased buying power, groupwide sales, and lowering prices for their grocery clients. Merchants National Co-operative (MNC) is granted full wholesale terms. Two years previously, RGDATA established MNC as its buying arm, with the goal of reducing the cost of supplied goods. The Groceries Order (established 1956) is amended to allow suppliers to divide their customers into different classes in order to apply different terms and conditions. Those who buy in bigger quantities are able to secure better deals.

1959 •

1957 •

RETAIL NEWS begins publication, serving the needs of Ireland’s grocery sector. Dunnes Stores opens its first Dublin outlet, located in Henry Street.

1958 •

Jack Musgrave joins forces with Dutch franchise Voluntary Group

In November, Ireland’s first supermarket — a 5,500 square feet H. Williams outlet – opens in Dublin’s Henry Street. John Quinn, Managing Director of H Williams, is quoted as saying in the RGDATA Review, “Self-service is a natural development in trading, and to my mind the only way to conduct a retail business today. It is successful because it is more efficient and it is better for customers.”

“RETAIL NEWS has been a staunch supporter of the retail sector over the past 50 years. The magazine has always articulated the need for a vibrant, competitive, and high quality network of independently owned stores across the country to ensure healthy competition to the multiples, but more importantly, to provide great choice for Irish consumers.”

sponsored by:

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Seamus Scally, former Chief Executive, Musgrave Group.


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SUCCESSFUL YEARS

ntury of iling “RETAIL NEWS has the unique position of having been there with Ireland’s independent sector throughout its earliest years. This magazine has been the one constant factor which has mirrored the evolution of the retail trade in Ireland and has given something that the other trade magazines do not. RETAIL NEWS was there alongside RGDATA and other industry associations in times good and bad and I hope that it will continue to reach retailers for many years to come.” Michael Campbell, former RGDATA Director General.

1960

1963

Feargal Quinn opens Quinns Supermarket in Dundalk, the first store in the future Superquinn franchise. Dunnes Stores opens a “superstore” in South Great Georges Street, Dublin. Advertisements boast that this is a ‘personal choice store’, with assistants behind every counter. Instead of asking for items, the customer could “examine” those on the countertop. Cork wholesaler Musgrave introduces Ireland’s first cash-and-carry wholesale warehouse. Instead of delivering orders to its customers, retailers come to the warehouse: a brand new concept. Musgrave begins its VG franchise of retail stores.

1961 •

Rowntree and Mackintosh businesses merge. Mackintosh’s Rathmines factory is sold and all production transferred to Inchicore. National Wholesale Groceries Alliance is established.

Dublin wholesaler AWL and Cork wholesaler MUM bring the SPAR franchise to Ireland for the first time. In April, a new fiscal package proposes a 2.5% turnover tax to be levied on retailers’ turnover. The industry reacts in fury. In May, RGDATA organise a gathering at Dublin’s Mansion House, attended by over 3,000 traders. The following resolution is passed: “This meeting protests in the most vigorous fashion against the unjust turnover tax and protests also at the impression created that the retail trades could or should absorb such a tax.” In July, a protest against the turnover tax is held in Dublin, attended by over 10,000 traders from across Ireland who parade from Parnell Square to Government Buildings. In November, despite retailers’ protestations, the turnover tax comes into force. All retailers with a monthly turnover in excess of £750 must register.

sponsored by:

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SUCCESSFUL YEARS

A Half Century of Retailing 1965 •

The “Sauce War”: one of the first price wars takes place, as multiples sell selected goods at below cost prices.

1966 •

sponsored by:

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Musgrave complete a new distribution centre in Cork, growing sales from £1.31 million in 1961 to £3.02 million in 1969 and quadrupling profits. Dunnes opens a store at Cornelscourt, Ireland’s first outof-town shopping centre. Taoiseach Sean Lemass opens the 1966 Conference of the International Federation of Grocers Associations (IFGA) in Dublin. The week-long conference is primarily devoted to self-

“Over the past 50 years, the Irish grocery market has experienced unprecedented change, as the forces of regulation, retail concentration, globalisation, retail brand development and new distribution practices have impacted on the business environment. Throughout these five decades, RETAIL NEWS has maintained a leadership role in connecting retailers and suppliers operating within the independent retail sector, providing a powerful source of information and a critical point of reference to all stakeholders within the trade. “Many structural and strategic developments have taken place over the past number of years. We have witnessed greater concentration of the retail sector, marking a huge decline in the number of wholly owned independent retailers, with a corresponding growth in the symbol group partnership model. The globalisation of the market, with the entrance of Tesco and more recently, Aldi and Lidl, has had a marked effect on consumer shopping behavior, which has presented real challenges to the independent retail sector over the years, challenges which have been resoundingly answered by heightened innova-

service (now that the traditional counter-service shop has become an anachronism). The (UK) Benevolent Society for the Grocery and Provision Trade, later to become the Irish Grocers Benevolent Fund, establishes an Irish branch.

1967 • •

In January, Mangan Brothers acquire the Mace franchise. In March, Nestlé merge with Williams & Woods, undertaking the distribution of Nestlé products throughout the Republic of Ireland.

1968 •

Allied Breweries and Guinness Ireland merge.

tion and service from the independent sector. In addition, a focus towards more collaborative management across the supply chain, which has developed over a number of years, has resulted in a much more tailored and effective response by retailers to consumer needs; we are seeing much greater in-store innovation, product innovation and packaging innovation all of which is focused at ensuring the most precious commodity of all, time, is conserved by our consumers. “Throughout this time of change within the Irish retail market, RETAIL NEWS has remained at the forefront of industry development, and has used its leading position to constructively contribute to industry debate at all times.” Stephen O’Riordan, Joint CEO, ADM Londis plc


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A Half Century of Retailing “Happy Birthday to RETAIL NEWS. 1957 saw the birth of Osama Bin Laden, Elvis at No.1 and Kellogg’s told us to eat healthier by launching Special K. 1957 also saw the formation of the EEC to facilitate trade and reduce bureaucracy between European Countries. That year also saw the return to power of Fianna Fáil to the 16th Dáil with 78 seats! Not much has happened in 50 years.” Tom Shipsey, Chief Executive, Stonehouse.

1969 •

Cadbury Group Ltd merge with Schweppes Ltd to create Cadbury Schweppes plc.

will present “formidable and possibly insuperable problems”.

1974 •

1970 • •

• •

ADM secure the Londis franchise. The multiples have by now grabbed a 30% grocery market share, leaving the remaining 70% split equally between symbol groups and other independents. The future Unilver Ireland commences trading as CPC Foods. Chivers settles down in Coolock, Dublin, at a modern facility covering over 100,000 square feet and comprising of a factory warehouse and company headquarters

1975 •

• In February, the Republic of Ireland decimalises its currency.

1972 •

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The detested turnover tax is replaced by VAT, which would climb as high as 35% in the mid1980s. Quinnsworth is founded by Pat Quinn with the slogan, “Let’s get it all together at Quinnsworth”. McMullans changes its name to Maxol, replacing and phasing out existing brand names, Mex, Silensol and Daisy.

Keencost Centres (Ireland) begins trading.

1978

1971 •

Baileys Irish Cream Liqueur is created in Ireland.

In June, yet another Groceries Order is passed, this time introducing new provisions in regard to own label goods, payment of bills, and the exclusion of fresh and frozen meat and vegetables from the Order. A group of retailers and wholesalers boycott an Irish manufacturer who was complicit with a retailer that allegedly sold goods below cost. In November, the Examiner of Restrictive Practices recommends a change to the Order to facilitate prosecutions demanded by the trade in regard to selling below the “net invoice price.” In December, yet another Groceries Order is signed, making a total of six Groceries Orders, in what is becoming a somewhat confusing regulatory environment.

1973

1979

A new Groceries Order introduces a new provision: suppliers may vary the terms of any transaction by implementing supplementary terms, otherwise known as offinvoice discounts. However, the FTC, who brought the recommendations for the legislation, believe that an outright ban on below cost selling is not justifiable and

Musgrave’s VG chain is disbanded: the larger outlets become SuperValu stores, while the smaller ones become Centra shops. Irish food wholesalers unite to form the Irish Association of Distributive Trades (IADT), headed by Ray Burke. Marks & Spencer open their


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A Half Century of Retailing

• •

first Irish store on Dublin’s Mary Street. In March, Ireland ends its pound’s parity with sterling. October. RGDATA and IADT apply to the High Court for an injunction to prevent 3 Guys Ltd (an Irish multiple operated by UK giant Tesco) from advertising goods below cost. 3 Guys acknowledged that they had sold products beneath the net invoice price but argued that discounts and rebates, paid to them by their supplier and not shown on the invoice, should be taken into consideration. In December, Justice Ronan Keane rejects the 3 Guys argument, stating: “I cannot accept the submission on behalf of the defendants that the net invoice price is to be equated to the real purchase price. If this were correct, it would mean that at the date the goods were advertised for sale, it could not be said with any certainty that the goods were in fact being advertised for sale at a price equal to or greater than the net invoice price, since a period of up to a year might elapse before the ‘real purchase price’ could be ascertained.”

“The last 50 years have been a period of challenge, change and opportunity for the independent retail grocery sector. However, some of the core values that underpin the success of the independent sector have remained the same - a commitment to customers, strong loyalty to local suppliers and an appetite to constantly innovate and change. In the face of very significant competitive challenges from some of the biggest companies in the world, the independent Irish retail grocery sector has much to be proud of over the last 50 years. Congratulations to RETAIL NEWS on its 50th birthday.” Tara Buckley, Director General, RGDATA.

1980 •

Multiples now maintain a 36% share of the market. Symbols have fallen to 31% and other independent retailers are down to 25%.

1982 •

1981 •

Advertising the sale of goods at below cost is banned - a largely cosmetic measure that has little real impact. The Irish Grocers Benevolent Fund splits from the UK branch

to become a fully independent organisation and a registered charity. The IGBF is also registered under the Friendly Societies Act. Geoff Read founds Ballygowan Company.

H. Williams is taken over by property developer Finbarr Holland. However, the change of ownership fails to revive its fortunes. A new Planning Directive obliges planning authorities to consider the likely impact of retail developments on existing retailers when granting planning permission.

“For the past 50 years RETAIL NEWS has kept its finger on the pulse of the retail industry in Ireland, making it an invaluable resource for anyone with an interest in the sector. In such a fast changing environment, it is a must read to keep up with the latest industry news and trends.” sponsored by:

Chris Martin, Chairman, Musgrave Group. 23


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A Half Century of Retailing 1983 • •

MNC is taken over by BWG. A Joint Oireachtas Committee on Small Businesses is established. Chaired by Wexford deputy Ivan Yates, the Committee decides to launch an investigation into the retail and distribution sectors and invites submissions from interested parties.

leading to the collapse of multiple H. Williams. Hundreds of employees are left without a job, in a time of high unemployment, and many Irish suppliers are left nursing heavy losses. The Restrictive Practices (Groceries) Order 1987 (known as the “Groceries Order”) is introduced, prohibiting the sale of below cost goods. The National Lottery is formed.

1984 •

The multiples’ share of the market has by now reached 58%, one of the highest levels in Europe, while the symbols and other independent retailers are down to 21% each. In October, the Joint Oireachtas Committee on Small Businesses is critical of the multiples, stating: “The Committee believes that multiple stores have an unfair advantage through their inordinate strength to (a) obtain from suppliers prices and credit terms that are in effect unsustainable and unfair, and (b) can be punitive to Irish manufacturers. In the long term, this is not in the public interest and we therefore recommend three modifications to the existing controls on retail trading and development.” The Committee’s first recommendation is a ban on below-cost selling.

1988 • •

The Irish Retail Newsagents Association is formed. Donegal Catch launches its first foil bag range of frozen fish in Ireland. Marks & Spencer open their second outlet in Grafton St.

1990 •

Greencore acquires 50% of Odlums.

1991 •

Feargal Quinn’s son, Eamonn, takes a key management role as deputy chairman in Superquinn. The Sugar Company becomes part of the Greencore Plc Group, and is now known as Irish Sugar Plc.

1992 •

The Irish Fair Trade Network is established.

1986

1994

The Homestead brand is established under the direction of the National Wholesale Groceries Alliance.

1987 •

In Autumn, Dunnes Stores launch yet another price war

In December, an act of the Dáil establishes Bord Bia/Irish Food Board, bringing together the former CBF (Coras Beostoic agus Feola - the Irish Meat and Livestock Board) and the food promotion activities of the Irish Trade Board.

“Grocery retailing in Ireland has undergone hugely significant changes over the past 50 years and I am delighted that RETAIL NEWS has been there to guide us along the way. The magazine has played a very important role in connecting independent retailers to the issues of the day, as well as representing the interests of these retailers at a national level. I know I speak for all Mace retailers in congratulating Kathleen and her team on 50 years in business, and I wish RETAIL NEWS every success in the future.” sponsored by:

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Peter Kealy, Chairman, Mace.


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A Half Century of Retailing 1995 •

ADM (originally Allied Dublin Merchants Limited, later Allied Distributive Merchants Ltd) buys the Londis brand in Ireland and Northern Ireland.

1996 • •

Barrys launch the Quik Pick franchise. Tayto build a new state-of-the-art distribution centre in Ballymount, Dublin. The centre is 30,000 square feet in size, containing 10 automatic loading bays, with the capacity to hold in excess of 150,000 crisp cartons at any one time. Maxol intervenes in the row between Statoil and the Irish Government over the blocking of Statoil’s intended takeover of Jet, the deal going through on the basis that Maxol acquires 80 additional retail outlets from Statoil and Jet. The first Irish product bearing the Fairtrade Mark - Bewley’s Direct coffee - is launched.

• •

1998 •

1997 •

In May, Tesco acquire the retailing and supply chain operations of Associated British Foods for £643 million. In the Republic of Ireland, the buyout includes retail operations Powers Supermarkets Ltd (trading as Quinnsworth), Crazy Prices, Stewarts Wine Barrel off-licence chain, Lifestyle Sports, the meat processing and packing business Kingsway Fresh Foods Ltd, and the Fresh fruit and vegetable distributor Daily Wrap Produce Ltd. The first store under the Tesco name opens in Athlone.

Seamus Scally becomes Chief Executive of Musgrave Group. One of his first moves is to consolidate the Group’s position in Northern Ireland by acquiring the chain of 21 Wellworth stores, giving Musgrave a 10% share of the Northern Irish grocery market. Musgrave Group launch the Day Today brand, servicing smaller grocers across Ireland. Mangans launch the XpressStop symbol group. Repak, the not-for-profit waste scheme, launches in Ireland in a bid to help the country to meet EU recycling targets.

The Planning Directive for Superstores places a floor-space cap of 3,000 square metres on new supermarkets. In July, the Food Safety Authority of Ireland is established under the Food Safety Authority of Ireland Act, 1998. Gala Retail Services launches, operating under three brands: Gala, Gala Superstore and Checkout. Allied Domecq acquire 100% of C&C Soft Drinks Company.

1999 • • •

Smirnoff Ice is launched in Ireland. Guinness Draught in a Bottle is introduced. In November, Aldi, a German discount grocery retailer, opens its first Irish supermarkets: one in Dublin, the other in Cork. Avonmore Foods and Waterford Foods merge, changing their name to Glanbia (meaning ‘pure food’ in Irish).

“The CSNA welcomes the opportunity to congratulate RETAIL NEWS on 50 years in business. Many of the issues that were problems in 1957 are still with us today. Our over-bureaucratic and wasteful local authorities, semi-state and government departments cause today’s retailers even greater frustrations. I look forward to RETAIL NEWS championing the retailer as a risktaker worthy of reward.” sponsored by:

Vincent Jennings, Chief Executive, CSNA. 25


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A Half Century of Retailing 2000 •

• •

Tesco Ireland launches its tesco.ie online shopping service for the Dublin area. Musgrave buy a 43% share of the English grocery chain Budgens, which operates 167 stores in England. The first critical review of the Groceries Order takes place. In October 2000, Mary Harney TD, the Tanaiste and Minister for Enterprise, Trade and Employment, decides to retain the Order, saying that she believes below cost selling is not in the public interest. Keencost Centres (Ireland) and the National Wholesale Groceries Alliance merge to form Stonehouse. German discounter Lidl opens its first Irish store. Barry’s acquires the Costcutter Franchise for the Republic of Ireland.

2004 •

• In January, Minister for the Environment, Noel Dempsey TD, issues new Retail Planning Guidelines. The Guidelines maintain the 3,000 square metre cap on new supermarket floor space but increase the allowable floor space in the Greater Dublin Area to 3,500 square metres. Under these Guidelines, all planning authorities must incorporate retail policies and proposals into their development plans and, as far as possible, new development is to be sited within town centres. Noel Dempsey states: “The Guidelines will ensure that the future development of the retail sector in Ireland will accord with the principles of sustainable development, while at the same time facilitating a competitive retail sector which can only benefit the consumer.”

2002 •

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On January 1, Ireland changes over to the euro. The new notes and coins are introduced, primarily via retailers. The exercise is a resounding success

On March 29, the smoking ban is introduced to the delight of off-licenses across Ireland. In August, the Jacob Fruitfield Food Group is created, as a result of the amalgamation of Fruitfield Foods (bought out from Nestlé in 2002) and Irish Biscuits (purchased from Groupe Danone earlier in 2004). In, October, finance director Chris Martin takes over as Musgrave Group Managing Director from the retiring Seamus Scally.

2005

2001 •

with virtually all transactions conducted via euro within two weeks. Mangans Wholesale acquire the Vivo franchise for the Republic of Ireland.

In January, ADM Londis converts from a co-operative to private plc status, allowing its retailers to own a chunk of the business: the only group in the Irish sector to make such a move. In August, Superquinn is sold to the Select Retail Holdings consortium. Simon Burke replaces Feargal Quinn as Executive Chairman, Quinn becomes non-executive President. Eamonn Quinn leaves the company. In November, Micheál Martin TD, Irish Minister for Enterprise, Trade & Employment, announces that the Groceries Order will be revoked. He said: “One of the key aims of the current Order, which was introduced in 1987, was to prevent below cost selling by larger retailers in a manner that would damage their smaller competitors. Unfortunately, key provisions and terminology in the Order designed to achieve that objective has been identified in the Report as no more than an ‘administrative convenience’. It is simply no longer acceptable that State intervention in a key


Congratulations to Retail News on their 50th birthday from BIC, your number 1 supplier of stationery, lighters and shavers

BIC Ireland (Ltd), PO Box 872, 3rd Floor, Park House, North Circular Road, Dublin 7. Tel: 01-810 2800 Web: www.bicworld.com


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• • •

sector of our economy should be based on an administrative convenience with no economic rationale to support it whatsoever. Predatory pricing is an anticompetitive practice and is outlawed by the provisions of the Competition Act. The Groceries Order, on the other hand is incapable of addressing the threat of predatory pricing in any sort of proportionate way.” Musgrave launch new symbol group Daybreak. Diageo acquires Bushmills Irish whiskey. Unilever Foods Ireland and sister company Lever Faberge Ireland merge and are renamed Unilever Ireland. In December, the Drinks Industry Group of Ireland launch the Monitoring Body for Alcohol Advertising.

2006 •

In March, The Restrictive Practices (Groceries) Order 1987 is abolished. In May, the Irish Retail Newsagents Association is renamed the Convenience Stores & Newsagents Association (CSNA). In September, in the face of increasing criticism that retailers have not dropped prices in the wake of the Groceries Order dissolution, Tesco announces that it has reduced the prices of more than 5,000 grocery items since May.

“The fact that RETAIL NEWS is marking its fiftieth anniversary speaks volumes about the publication. The media industry in Ireland is as competitive as the retail sector and over the past 50 years, RETAIL NEWS has managed to keep its finger on the very pulse of this ever-changing market and remain an essential informed read. Knowing Kathleen and her team, I am sure they will not be resting on their laurels and we look forward to the next 50 years of RETAIL NEWS. Congratulations and keep up the good work.” Donal Horgan, Managing Director, Musgrave SuperValu-Centra.

2007 • • • •

Premier Foods announces the acquisition of Chivers Ireland. Repak celebrates its 10th anniversary. The National Lottery celebrates its 20th anniversary. RETAIL NEWS celebrates 50 years of serving the Irish retail sector.

“I would like to congratulate all at RETAIL NEWS on an outstanding 50 years of service to the Irish retail trade. To reach this important milestone in such a competitive business is testament to the continuing editorial quality of the publication, as well as the hard work and dedication of those involved. When the first SPAR store was established in Artane in 1963, it was important to have an established retail trade publication to support the fledgling brand and I am delighted that both SPAR and RETAIL NEWS have flourished ever since. We look forward to another 50 years of fruitful partnership.” Leo Crawford, Chairman, SPAR Ireland and President of SPAR International.

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Fighting for the Right to Retail Michael Campbell, former Director General of RGDATA, recounts the long-running battle to preserve Ireland’s grocery sector. Michael Campbell, former RGDATA Director General

Michael

Campbell is recalling the troublesome days of the 1980s, when the grocery industry was under siege from anti-competitive practices. These were the days when big business and politics went handin-hand, hence the plethora of tribunals today. Michael Campbell recalls one particular occasion when a supermarket mogul flexed his political muscles, warning the then RGDATA Director General that one phone call could give him access to real political heavyweights. “In other words, ‘don’t come to me about below cost selling, planning acts or anything like that. I have access to power’,” Campbell recalls. The fact that Michael Campbell stood strong in the face of such dealings is testament to his importance in the recent history of the industry. Remarkably proactive, with an unerring instinct for industry, Campbell lifted RGDATA from the doldrums and placed it firmly in the public (and political) eye. Campbell succeeded the position in 1984 from Jim O’Reilly, who had held the position of Director General since 1970.

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Effective Lobbying Organisation Under Campbell’s tenure, not only did services to members improve but the group also became one of the most effective lobbying organisations in the country – improving retailers’ standing in terms of insurance costs, rates, crime, and bank charges. Campbell fought hard against out-of-town retail centres, as well as the scourge of below cost selling, and was a major component in the establishment of the Groceries Order in 1987. The RGDATA directorship was the peak of a career for this enthusiastic and fast-thinking man. Campbell left school at 16 and went to work in his father’s counter service grocery business in Co. Dublin during the late 1950s. Five years later, he left to become a rep with Aran Foods but “your first job always makes a big impact” and he “always had an interest in the grocery trade”. “I wanted to switch to marketing but it was difficult in those days – the common perception was that if you were a sales person you did not have the right make-up for marketing,”


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Campbell continues. “It was perceived that sales people are more seat-of-thepants, while marketing people are more deep thinking people.”

The Marketing Move Campbell began working at a new dynamic advertising agency, Wilson Hartnell, which employed around 14 staff members. Although the sales business was not for him, it did create a bridge into marketing. In 1967, Campbell became the first brand manager at Cantrell & Cochrane, looking after products like Schweppes and Miwadi. C&C were at the time an assembly of several companies, combined under the Guinness umbrella. “I was about 28 years old and I remember looking out my office window in Ballyfermot and thinking, ‘Do I want to do this with the rest of my life?’ I upped and offed,” he smiles. “I knew that all kinds of experience can help a career in marketing, so in 1970 I travelled to Australia where I got a job for the Phillip Morris cigarette company in Melbourne. They were a highly professional company, marketing the Marlborough and Gallaher brands, and it was the first time I had worked somewhere where incredible core facilities were readily available.” Three years later, Campbell returned to Ireland and the grocery trade. He was offered the role of Chief Executive at Mace, giving him combined retail and wholesaler experience (since wholesalers owned the franchise), where he stayed for a few years, before taking a post as Managing Director of a small import company, Variety Foods, run by Jacobs. This post gave Campbell warehousing and transporting duties – responsibilities that he had not experienced while working in the franchise business – and since the company turned over no more than £4m per annum, it gave him the opportunity to see affairs from the perspective of an underdog.

The Emergence of RGDATA Before long, the national wholesale body, Irish Association of Distributive Trade (IADT) knocked on Campbell’s door. “Food wholesalers throughout Ireland had united to try and face the

SUCCESSFUL YEARS

multiples’ threat, putting their combined buying power together. In 1982, the opportunity to work with RGDATA arose. Their Chief Executive had retired – IADT had worked closely with them - so we knew one another very well. We agreed that I would retire from IADT and become Chief Executive of RGDTA.” Over the following four or five years, wholesalers poured money into RGDATA in an attempt to revitalise the trade association. “Beforehand, you joined RGDATA but never heard anything from them until the day you left. So we set up conferences, regular newsletters, all sorts of communication and events,” recalls Campbell. What did Michael Campbell bring to the job? “All my combined experience up until that point worked for me. I understood the industry, although I had to learn a lot about lobbying and the media,” he notes. “There were days when I would do two national interviews and maybe ten local radio station interviews. We would send out at least two press releases a week, usually with a 90% pick-up! I also bought a great degree of passion to the job. We all felt very strongly about our role and put 60 hours a week into it.”

Predatory Tactics During the 1980s, the multiples became unashamed bullies; the predatory tactics leading to the collapse of H.Williams were a case in point. Dunnes dropped their prices until H.Williams were forced out of the market, although poor management in H.Williams was also partly to blame, with a loss of £17m to their suppliers. The event was the final straw for a sector that had been ravaged by predatory practices, illustrating RGDATA’s argument that a ban on below cost selling was long overdue. “We did two things that were instrumental in bringing a degree of stability to the marketplace,” Campbell notes. “We helped introduce a planning directive in 1982, which basically said that you could not build shopping centres wherever you want. There has to be proper planning and hearing. In 1987, we finally got the ban on below cost selling, which lasted 31


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18 years. The Groceries Order worked well and gave everybody a chance. We told government that the multiples are selling a few items below cost: they bring the consumers in, then get the money back on the other products.” RGDATA’s fight to have their case heard was not easy, he explains: “The biggest obstacle we faced was the building and construction lobby. We were up against a lot of the characters you read about today in the tribunals. In the face of all that corruption, how we got anywhere lobbying still surprises me to this day!”

Planning Directive The 1998 Planning Directive for Superstores, placing a floor-space cap of 3,000 square metres on new supermarkets, supplemented the1982 Planning Directive. Meanwhile, the Groceries Order allowed independent retailers the opportunity to compete with multiples on a level playing field, dramatically increasing their share of the market in the later stages of the 20th Century. How does Michael Campbell feel about the repeal of the Groceries Order last year? “It is regretful,” he replies. “This legislation marked a very important time in the life of the grocery trade and it allowed retailers to come from insecurity and vulnerability to investment, confidence and strength. The Groceries Order is why the SuperValu’s, SPARs and other franchisees are still competing today and are out there with the best of them. “I remember travelling the length and breadth of Ireland as a rep in the 1960s and some of the shops were very limited versus the likes of Dublin or Cork,” he continues. ”With the growth of the franchisees, every town in Ireland had a great shop with a great range of products. Consumers in isolated areas, which were not attractive to Dunnes, had the same access to a great range of products and store sophistication. The rural SuperValu, Centra or SPAR would not have been there if they were wiped out earlier on.

Store owners had the confidence to borrow half a million, invest and reinvest, and did so under the security blanket of the ban on below cost selling. I think it fulfilled a very important role during its 18 years.” In 2000, Michael Campbell retired as Director General of RGDATA. The retail landscape has changed irrevocably since he started his career and while he remains optimistic about the future, he contends that franchisees are now the last bastion of independents. “The non-aligned retailer, who does not belong to Centra, SPAR or another group, is hugely vulnerable and there has been an erosion in their numbers over the years. There are franchise names for just about anybody who wants to put a name over the door and get some services. There is a chance for everyone to be part of a franchise. The day of the independent, non-aligned, non-franchised retailer is numbered.”

“We did two things that were instrumental in bringing a degree of stability to the marketplace. We helped introduce a planning directive in 1982, which basically said that you could not build shopping centres wherever you want. Then, in 1987, we finally got the ban on below cost selling, which lasted 18 years.”

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A Great Cooke George Cooke, mainstay of the wholesale trade for over half a century, reflects on years gone by.

The

founder of George Cooke & Co. belies his 83 years of age with a sharp memory and keen enthusiasm. Although 90% of the company is in his son’s name (“He’s the boss now”), George Sr. still comes into work every morning before 9am and stays until 1pm. After all this time, when he has long since earned the right to put his feet up, what draws him back to the job? “I love meeting people,” he says. “I love kicking backsides and I love the grocery trade. It’s in my bones.” George Cooke served his time with Hughmore & Alexander’s - the only publicly quoted company in the grocery business at the time – located in Dublin’s Linenhall. The year was 1941 and the industry was besieged by wartime rations and quota systems. Three years later, George became the company’s Junior Rep (mainly covering Dublin, but he also undertook some country work) and by 1946 he was liasing with Musgrave in Cork. “On March 31, 1949, I left Hughmore to start my own business,” George recalls. “I was going to start a window cleaning business but my mother said, ‘Why don’t you establish a business that you know?’ So I rented a premises from the YMCA on Lower Rathmines Road. The rent was £50 a year, including rates and ESB.” This premises incorporated three

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George Cooke Senior, the founder of George Cooke & Co.

floors across 5,250 square feet. Today, 58 years later, George Cooke & Co. is located in Bluebell, Co. Dublin, spread across 3.5 acres, including a 35,000 square feet warehouse. “When I bought this place in 1986, I took my father to see it,” he remembers. “He was in a wheelchair and said, ‘You’ll never fill this place’. Well, now it’s full!”

The Early Days In their early days of business, George Cooke & Co. struggled to find products for wholesale, but firms like Brown & Polsons, Goodalls, and Jacobs Biscuits came on board. George describes the difference between supplied products in the 1940s, 1950s, 1960s, and today. “There is a much bigger range of products today,” he notes. “When I served my time, everything came in bulk and you would weigh food in 7pound and 14-pound parcels. You learned about many different rices and fruits. Today, people buy raisins and currants, but they don’t have all the different grades of currants that we used to. These days, currants are


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just currants.” In 1961, George Cooke founded the National Grocers Wholesale Alliance (NGWA) and sat as President for a number of years. Such heritage made George Cooke & Co. the perfect partners for the Stonehouse Group. In early 2000, Keencost Centres and the NGWA merged, bringing their combined knowledge and experience together under one roof. Stonehouse is now Ireland’s leading independent wholesale company with a network of 28 member companies and a buying power of around €2 billion each year.

The Groceries Order Cooke Sr. is nostalgic for the grocery landscape of yore, especially considering recent changes in the trade. “Changing the Groceries Order was a big mistake. Albert Reynolds made a wise decision to bring in the Order. He was a very good Taoiseach – straight and honest – and the Order helped the small man and kept the prices down. It helped competition,” he notes. “The industry has changed for the worse, to be honest. Too few people have too much muscle. In the old days, manufacturers had wholesale terms and retail terms. In the middle, they had multiple terms that went to the likes of Findlaters or H Williams. There was a greater differential. Today, the multiples are getting better terms than everyone else.” George contends that although the likes of IADT could be more proactive with their lobbying, nothing can diminish his love of the job. “I’d like to keep my health for a few more years in order to look after this company,” he says. “There are prospects here. Our business is mainly in catering now and there is a big future in that. In time, we will have to get into the retail business, but I’ve kept away from that area to support our customers.”

Benevolent Fund. “One of my first calls when I went on the road as a Junior Rep for Hughmore was a company called Colgan & Co. Tim was a young fella serving his time there in a khaki coat. We struck up a friendship that day and we’ve been great friends ever since.” George laughs when asked about the Fund’s annual gatherings at Howth Yacht Club. “It’s a great day. We meet all the old timers – sales managers, managing directors,” he laughs. “They enjoy the day out, have a few jars, and get a bag of groceries to bring home to the wives as a peace offering. As one fella says last year when I gave him the bag, ‘I’ll be the queen’s arms tonight!’” And with that George goes back to work and the job he knows so well.

“Changing the Groceries Order was a big mistake. Albert Reynolds made a wise decision to bring in the Order. He was a very good Taoiseach – straight and honest – and the Order helped the small man and kept the prices down. It helped competition”

Old Friends George lifts his hat to Tim Nolan of the Irish Grocers 36


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Life in the Fast Lane Joe Lane, former Managing Director of ADM Londis, casts his mind over an illustrious career in the grocery trade. “

The

grocery industry has vastly changed over the last 50 years,” says Joe Lane. “The trade has evolved to an incredible extent. If you look back over the past few decades, it is quite incredible.” In 1954, three years before RETAIL NEWS published its first issue, a cooperative society was founded by a group of 100 grocers, called Allied Dublin Merchants Ltd (ADM Ltd). This co-operative was the brainchild of RGDATA founder Valentine McCarthy, who travelled to Europe, alongside colleagues Louis McCarthy and John Duffy, on a fact-finding mission in the early 1950s. There, he discovered a system of collective retailer purchase (whereby one retailer might provide other retailers with supplies purchased direct from manufacturers). In 2004, RETAIL NEWS interviewed Val McCarthy, who sadly passed away last year. Commenting on the idea of retailer purchasing power, he said: “I liked this method but thought it a little unwieldy and preferred the idea of a retailer actually owning a wholesale establishment. So, upon return to Ireland, I convened a meeting of 100 38

Dublin retailers, judged them on the basis of my consideration – whether or not they were capable of settling their creditors’ accounts. That meeting was held in an office on Grafton Street in 1954 and there we decided to form a retail-owned co-operative society.” Co-ops, Val explained, were not subject to tax and this society remained tax-free until 1963’s Finance Act. Allied Dublin Merchants (ADM), as they were known, rented a store on Great Britain Street, off Parnell Street. They began purchasing stocks from importers and manufacturers and later traded from a factory on Crumlin Road. The wholesale trade was far from impressed and did its utmost to prevent ADM’s initiation; it took many months before all manufacturers agreed to supply the group. Joe Lane, now 71 years old, joined ADM as Marketing Manager in 1962 when the company was still small and had a turnover of around £350,000 a year. “In those days, there wasn’t a build-up of multiples,” he recalls. “It was just the beginning. The only real multiple at the time was H.Williams and that was primarily Dublin-based. In the early years of ADM, we found it difficult to get supplies from manufacturers but John Quinn, Managing Director of H.Williams, helped us out to a great degree because he was a member of the board.”

Expanding Organisation In the late 1960s, ADM’s Managing Director Joseph Booth passed way and Joe was appointed to the position of MD. “At that point we wanted to expand the business,” he recalls. “We wanted to be an organisation that could service and develop throughout the country, so we changed our name to Allied Distributive Merchants Ltd.” In 1969, ADM joined forces with British company Londis, uniting their


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purchasing power to become ADM Londis Ltd. The following year the company launched 33 of its existing stores under the Londis franchise. “We wanted an umbrella organisation to market under, so we approached Jim Callaghan, Managing Director of Londis in the UK,” explains Joe. “Londis, whose name came from the words ‘London Distribution’, were the perfect fit in that they were a group of retailers that had developed in a similar manner to ADM. Recently in the UK, the Londis brand was taken over by Musgrave, but in Ireland ADM had ownership.”

Distribution Warehouse In 1975, ADM Londis Ltd opened a distribution warehouse in Johnstown, Naas, Co. Kildare. “It was one of the very first modern warehouses built,” recalls Joe. “We received the first state-issued open bond in the country. In those days, only companies such as Dublin Port and Gilbeys had bonds. No other bonds were issued. The EEC had come into being and we were entitled to look for an open bond. We eventually succeeded.” Joe recalls the tumultuous days of the 1980s, when independent retailers were under threat of extinction from predatory practices. “Today, they talk about competition but there was nothing as bad as the competition during the 1980s when some of the multiples were engaged in under-cost selling,” he states. “They had better offerings than the average sized independent store because they sold various goods, such as hardware or clothing. They used the grocery trade to draw custom to their stores.”

Below Cost Selling Those years were amongst the most difficult periods in the history of the grocery trade, contends Joe. “There was no legislation to ban below cost selling, although that was subsequently brought in. I used to dread the Gay Byrne Show on a Thursday morning, because they would announce the price cuts and I would hear from every retailer in the country asking why we couldn’t buy goods at those prices. There was no way of 40

explaining that to the retailer.” Joe Lane retired in 1991 after 39 years in the trade, happily leaving the industry behind him. Meanwhile, Val McCarthy served as ADM chairman until 1984, simultaneously managing Shiels of Moore Street and serving on the boards of several state bodies, including Irish Sugar (now Greencore) and BIM.

The Future Joe Lane believes that the grocery industry today is “dominated by a few major companies”. In my day, there were a lot of independent wholesalers but they consequently amalgamated and formed all sorts of groups.” Doomsayers who predict the downfall of the small grocery retailer might also bear in mind Joe’s comments that the trade is a more comfortable environment than it was 20 years ago. “In my day, a tin of beans would cost about 10p but some multiples were selling it for 5p,” he remembers. “You can not use that equation today since there are so many ‘two for one offers’ so the entire nature of marketing is different and it is not necessarily about driving other stores out of business.” Meanwhile, ADM Londis lives on. This, the first retail-owned wholesale operation in Europe, succeeded beyond Valentine McCarthy’s wildest expectations and inspired Mace, SPAR, SuperValu and all the other organisations that we know today. Similar enterprises in France, Norway, Denmark and Britain, emulated the success of ADM Londis, and the company looks set to thrive far into the future.

“Today, they talk about competition but there was nothing as bad as the competition during the 1980s when some of the multiples were engaged in under-cost selling.”


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Giving Back to Grocery Tim Nolan, founder of the Irish Grocers Benevolent Fund, on the long-lasting lifeline for Ireland’s grocery trade.

Whenever

a participant in Ireland’s grocery trade falls on hard times - whether a retail grocer, wholesaler, manufacturer, or supplier to the trade – the Grocers Fund has offered support. Last year, the Fund assisted 286 families with grants (including Death Benefits) totalling €738,000, proving that the body remains as relevant in 2007 as it did 20 years ago. No-one knows the Fund better, or has done more for those in the trade, than Tim Nolan. In 1964, Gerry Duffy – an exPresident of RGDATA - decided to start a branch of the UK Benevolent Fund in Ireland. RGDATA could not take the responsibility of running this body, so Duffy asked Nolan to take the reins. “Our first fundraising function was in Dublin Zoo in 1968 and we had it there for years after that,” recalls Tim, who is still on the committee but is no longer directly involved in functions. “There were many stories about attendees ending up in the Hole in The Wall pub or Ryan’s of Parkgate

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Tim Nolan, founder of the IGBF.

Street. There was even a rumour that someone fell into the bear pit. “Eventually we moved to the Royal Hospital, opposite Houston Station,” he recalls. “We didn’t stay there too long, due to difficulties in bringing in catering. We moved to O’Reilly Hall on the UCD campus. There was one in function in Ballsbridge that was a disaster so we moved to Jurys and remained there for years. In recent years we ended up in the Burlington Hotel but now that the Burlington is being sold, we will have to move once again. We’ll probably end up in Citywest.” Feargal Quinn was the Fund’s first President of Appeals – he was assigned the task of asking each grocery business for £5. “For years we couldn’t get more than a bloody fiver off them,” laughs Tim. For their very first function, the Fund charged 25 shillings entrance fee and made about £1,000 in total.


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Tight Budget How exactly does the organisation operate? “We keep the budgets as tight as we can and keep a very low profile, not revealing our cases, since people in this country are very proud. Back in the 1960s and 1970s, there was a lot of poverty - mostly retired or unemployed older people who would get a pension of around 25 shillings a week,” Tim notes. “I remember visiting two older ladies in East Wall Road in the early 1970s. We were giving them £2 or £3 each a week but they never seemed to have enough food on the table. One day I quizzed them and they admitted that they were trying to save up for their burial. Their one big worry was a pauper’s grave. After that, we set up a separate fund towards burials.” In 1981, Tim Nolan, alongside Gerry Duffy, decided to establish an autonomous Irish fund, splitting from their UK partners. Hence the Irish Grocers Benevolent Fund (IGBF) was born. This body employed a retired bank manager to keep close tabs on the finances. “Our cost of operations have never gone

SUCCESSFUL YEARS

over 5% and for many years it was actually less than that. We have always been very proud of this fact,” notes Tim. Alongside the various fundraising events, Tim was active in ensuring that people in the trade were not forgotten. In 1988, he held the Fund’s first gathering in Howth Yacht Club in which retired people, who had helped the organisation, would get together for a meal, drink, and a chinwag. George Cooke, of George Cooke & Co., organises a gift bag for each of the attendees at the event, which is still ongoing. “The only sad thing about it is that every year I have to be careful not to invite someone who has passed on, while others get too old to come,” says Tim.

Fascinating Career

Despite Tim Nolan’s voluntary generosity and dedication to the IGBF, it should be noted that the man has had a fascinating career of his own. After WWII ended in 1946, he began working in a shop called Colgans in Rathmines. “In those days, you began serving your time at about 14 or 15 years of age and worked for ten years before you earned full salary. I started on about 15 shillings – two euro today – and had “I remember visiting two to supply my own shop coat. I’d be bottling stout or rackolder ladies in East Wall ing whiskey at night. In Road in the early 1970s. those days, the back of store had no heating or refrigeraWe were giving them £2 tion at all.” or £3 each a week but After a year and a half in Colgans, Tim worked at they never seemed to another grocery store for have enough food on the seven years. He then travelled to Canada, swearing table. One day I quizzed that he would never go near them and they admitted the grocery trade again. Upon arrival in Vancouver, that they were trying to he ended up working for a save up for their burial. small chain of five supermarkets. “I couldn’t resist! It After that, we set up a was one of the best paid jobs separate fund out there,” he laughs. Tim began working in the waretowards burials.” house; after six months, he was purchasing goods for the chain and in less than a year he was managing a store. 43


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Nolan married and decided to return to Ireland when his first child was due in the early 1960s. He opened the first Five Star shop – a retail chain acquired by Quinnsworth in 1979 - in Limerick. “By today’s standards, my shop was small, but it was the first fully selfservice supermarket in this country,” he boasts. “Most things were not pre-packed – even the bacon and sausages weren’t pre-packed – so we designed cartons for the products. It was an expensive process but we were making money from the word go.” After a year and a half, Nolan moved to Crumlin in Dublin to open a second Five Star. Three years later Tim “went from the sublime to the ridiculous”: the Blanchardstown Mills, a company that originally sold milling products and ventured into groceries during the war. Tim remained there until the company was sold in 1967. “They never really invested money back into the business and a lot of old people ended up with no pension,” he says ruefully. “That motivated me with the benevolent fund.”

From VG to Musgrave From there, Tim was approached by VG services to become Marketing Manager, where he stayed for a couple of years before moving on to the board of Musgrave. “The problem with VG, as it was with most groups, is that once they got to a certain size, they wouldn’t invest the money back into the store. We decided that the best way forward was to create a franchise. The larger VG stores became Supervalu, the smaller ones became Centra.” Tim Nolan praises the IGBF’s many Presidents of Appeals, such as Fergal Quinn, John Quinn and Pat Quinn, as well as the Group’s many benefactors. Over the last 20 44

years, Presidents of Appeals have organised golf fundraisers, as well as the annual ball. The first golf event took place in the Woodbrook Golf Club in Shankill, Co. Dublin, and has been held in the Hermitage in recent times. Such events can raise around £70,000 on the day - a stark difference to the 25-shilling donations from the 1960s!

Generosity How does Tim consider the generosity of the industry today? “What saddens me a little is that the two foreign discount stores contribute nothing. However, all the big groups have been fantastic. People like Tesco and Dunnes are very good to us, as Musgrave have been over the years,” he says. And what has he learned from his role with the Benevolent Fund? “It can be hard work,” he admits. “You have to give people a lot of advice and time. People phone me at night and I might spend an hour on the phone with them. But, overall, I got so much out of it. I have met some wonderful people over the years. There is a lot more pleasure in helping than being helped.”


Wake up to the smell of success. The all new MACE. 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. And into the future.

www.mace.ie Contact: Brian O’Toole on 087 2599282


RN May07Gala Sponsorship ●

‘Gala’ Launch for Senior Camogie Championship Gala’s sponsorship of the All-Ireland Camogie Championship marks one of the biggest sponsorships of the year, and this year covers both the senior and junior championships.

Gala

Retail Services is Ireland’s fastest growing retailer group with 300 stores nationwide under the four brands – Gala, Gala Superstore, GalaXpress and Checkout. In 2005, it embarked upon one of its largest-ever marketing initiatives, the ‘Gala – Everything and More’ campaign, which was fronted by a TV ad with talented Gala employees in starring roles. In 2006, the brand continued its increased marketing efforts with the title sponsorship of the Gala All-Ireland Senior Camogie Championship. As the first-ever commercial sponsor of the sport, Gala focused on building the association and growing brand awareness. Due to the success of the 2006 championships and the high levels of brand recognition, Gala chose to extend its sponsorship for the 2007 season. The 2007 Gala All-Ireland Camogie Championship will now incorporate both the senior and junior championship, encompassing 27 counties across Ireland.

The Gala team pictured with Liz Howard, President of the Camogie Association, and Camogie players from some of the counties involved in this year’s championship. 46

A Brief History - The Gala brand was established in 1998 and is Ireland’s fastest-growing convenience retailer. - Gala has in excess of 300 stores across Ireland. - Gala employs over 3,000 people in both retail and wholesale operations. - Gala’s group retail sales in 2007 are projected to be in excess of €550m. - Gala has planned to open 30 new stores in 2007 with the creation of a further 400 full time and part time jobs. - Gala currently sources €200m of goods from Irish suppliers. - Gala Retail Services, through the company’s association with the Stonehouse and Aontas buying groups have access to buying power in excess of €2 billion.

Michael Conlon, aka ‘The Gala Bear’, is pictured with (l-r): Sally O’Grady, Captain of the Waterford team, and Lorraine Leavy, Captain of the Westmeath team.


R ●N June07Gala Sponsorship

Pictured at the launch of the Gala All-Ireland Camogie Championships are (l-r): Gemma O’Connor of Cork; Liz Howard, President of the Camogie Association; Liam Peters, Executive Chairman, Gala; Gary Desmond, Chief Executive, Gala; and Claire Grogan of Tipperary.

Camogie stars from the counties involved were in Croke Park at the announcement of Gala’s extension and for the launch of the 2007 Championships. Reigning champions Cork are bidding for three-in-a-row at senior level, while it is expected that the main challenge will come from Wexford and Tipperary. The Gala All-Ireland Junior Championship is wide open, with Clare, Derry, Down and Waterford likely to be in the final shake-up. League Senior B winners Limerick will be hoping to add the Gala All Ireland Championship title.

Mutually Beneficial Partnership Liz Howard, President of the Camogie Association, reflecting on the healthy state of Camogie throughout the country, said: “The Gala sponsorship of the All Ireland Senior Camogie Championship in 2006 raised the profile of our game and that of our sponsor’s. Gala has decided to extend the sponsorship to our All Ireland Junior Championship. This is a vote of confidence, proving that this is a mutually beneficial partnership. I look forward to a wonderful summer of Camogie in the Gala All Ireland Championships.” Speaking on the announcement, Gary Desmond, recently appointed CEO of Gala, said: “We are pleased to announce the extension of the Gala sponsorship to include the All Ireland Junior Camogie Championship. As one of the top two most popular female sports in Ireland by participation, this fresh commitment strengthens our relationship with the sport of Camogie. It expands the Gala relationship into a wider geographical area and builds a closer connection with a greater number of players and followers. “Many of our customers and staff play, or have played, Camogie,” he continued. “As convenience retailers, we are

Gala Seeking New Retailers “WE are building the Gala brand and are focused on encouraging independent retailers to join our Group,” enthuses Gary Desmond, Gala CEO. “It’s an exciting time for Gala, so if retailers would like to grow with Gala, we look forward to hearing from them.” Independent retailers interested in joining Gala should contact Gala on 1850 600 100 or visit www.gala.ie for more information. Gala…let’s Grow together!

Gala Sponsorship Nominated for Top Award As the first-ever commercial sponsor of the Camogie Association, Gala’s 2006 sponsorship of the Gala AllIreland Senior Camogie Championship has been nominated in the category of ‘Best Use of Sponsorship by a Brand’ in the Public Relations Institute of Ireland’s annual Awards for Excellence. at the heart of communities across Ireland – as is the sport of Camogie. We are looking forward to another year working with the Camogie Association.” Championship action started on Saturday May 12, with 14 Gala All Ireland Senior and Junior Championship matches taking place. Last year’s All Ireland Junior Champions, Dublin, are back in the senior ranks for the first time since 2004.

Massive Buying Power Gala Retail Services is Ireland’s fastest growing retail group and has gone from strength to strength since launching in 1998, and now has over 300 stores nationwide. In association with the Stonehouse and Aontas buying groups, Gala has access to buying power in excess of €2 billion, giving retailers the strength they need to excel in today’s competitive market. Gala employs over 3,000 people in both the retail and wholesale sector, and has plans to open 30 new stores in 2007, with the creation of a further 400 full-time and part-time jobs.

Excellence in Retailing Committed to continued excellence in retailing, the Gala Store of the Year awards were inaugurated in October 2003. The main focus on the initiative is the enhancement of store standards, as Gala believes this leads to heightened levels of customer satisfaction and ultimately, an increase in turnover and profitability. Stores are assessed on an ongoing basis throughout the year. The judging criteria include everything from the store's corporate image through to local marketing, staff training and knowledge of legislation. Awards are divided into various categories, with the overall award going to the store with the highest marks in all classifications. In 2006, the Gala Store of the Year went to Ger Dunne, Emmet Stores, Mountmellick, Co. Laois. The 2007 awards will be announced in October 2007. 47


RN June07Drinks News ●

Finlandia’s National Advertising Campaign FINLANDIA Premium Vodka has launched a national press advertising campaign, publicising the brand in leading, national press titles. The brand is enjoying strong growth and popularity in the Irish market, capitalising on the fast growing demand for premium quality spirits as well as the surge in the popularity of cocktails. The existing innovative and engaging below-the-line programmes will now be supported by a national press advertising campaign communicating, in a visually stunning way, Finlandia’s natural purity, premium attributes and unique personality. Pictured are Jens Gloeckner, Market Development Manager for Finlandia, and model Korina Graham.

Hennessy Artistry Celebrates the Art of Mixing MAY saw the celebration of Hennessy Artistry 2007, with 150 guests enjoying an intimate evening in the Sugar Club and entertained by a fusion of sounds from musical acts Pops Mohamed, Jaded Sun and The Immediate. Taste buds were enlightened as guests sampled Hennessy cocktails from around the globe, including Hennessy Miami, Shanghai and New York. Musician Pops Mohamed is pictured with Caroline Sleiman, Market Development Manager, Edward Dillon & Co. Ltd.

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Beamish Stout in the USA PICTURED are (l-r): Alf Smiddy, Chairman and Managing Director, Beamish & Crawford; Mike Mitaro, President, Carlsberg USA; and Brian Sexton, Commercial Manager, Beamish & Crawford, enjoying Beamish Stout in downtown Manhattan. They visited New York and Boston as a follow-up to the recent agreement reached with Carlsberg USA for the distribution of Beamish Stout in the United States. “We are very pleased with the progress that has been made already by Carlsberg USA in their support of Beamish Stout and this has been reflected in the response from both trade customers and consumers,” said Alf Smiddy.

Bud Light Revue Launched BUD Light Revue is the title of a groundbreaking comedy experience, which will take place over three days from July 27-29, 2007, in the stunning setting of the Iveagh Gardens, which are among the finest of Dublin’s parks and gardens and managed by the Commissioners of Public Works. The Modern Comedy Carnival will play host to over 50 acts, both Irish and international, (including Tommy Tiernan, Des Bishop and Emo Philips) playing more than 40 shows over one colourful weekend in four magnificent, fullyseated, purpose-built marquees.

Pictured at the launch are (l-r): model Tiffany Jones, comedian Tommy Tiernan and Bud Light Marketing Manager, Alex Smith.

Corona Sponsors Cork Film Festival CORONA has added its name to the Cork Film Festival, which will be renamed the Corona Cork Film Festival in a sponsorship deal valued at €500,000 over three years. The Corona Cork Film Festival will screen top international films at venues throughout Cork city, from 14 to 21 October this year. “This

sponsorship is a excellent fit for Corona Extra, and

an opportunity to support the Festival, while at the same time building the Corona Extra brand further,” noted Michael Barry, MD of Barry Fitzwilliam Maxxium, the importers of Corona Extra, who is pictured at the Festival’s launch with Mick Hannigan, Festival Director, and Aisling Cronin, the current Miss Cork.


RN June07On The Vine ●

Around the Tastings! Jean Smullen on some of the latest wine tastings in Ireland.

Select

Wines from Italy Ltd have been trading for almost 10 years and have come to be known as one of Ireland’s top importers of quality Italian wines and spirits. Their portfolio includes some of Italy’s top producers with wines on their list coming from the Alto Adige region in the Alps, right down as far as the mountains of central Sicily, with everything in between being well represented. They recently held a tasting to highlight their new range of wines for the off-trade. A number of wines really stood out, including their 2006 Veneto Antichello Pinot Grigio IGT (RRP €11.99), 85% Pinot Grigio, 15% Chardonnay and Gargenega: this has a wonderful, creamy nose with a nice citrus tang and a good weight of fruit. The same producer had a wonderful red wine from Bardolino, the 2006 Veneto - Anticello Bardolino Classoco DOC (RRP €11.99). Made from 55% Corvina, 25% Rondinella and 20% Molinara, this is a stunner, with ripe cherry fruit and a lovely balance of fruit and acidity. The star at the tasting was the 2006 Medaglione Rosso Salento (RRP €10.99), made from 80% Negromaro and 20% Malvasesia Nero: this is a real ‘wow’ on the palate, gorgeous meaty vegetal tones but lots and lots of concentrated black fruit on the palate. For more information, contact: Ray McGlynn, Select Wines from Italy Limited. Tel: (01) 2017669 or email info@select.ie.

Casa Donosa Tasting Meanwhile, J Donohoe Beverages Limited recently held a tasting of the Chilean wines which they distribute in Ireland, and which are certainly worth a look at. The wine range includes the 2001 Casa Donosa 1810 (RRP €19.95), made from a blend of 70% Cabernet Sauvignon and 30% Carmenere. The

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2003 Clos Centenaire, made from 40% Cabernet Sauvignon, 30% Carmenere, 20% Malbec and 10% Cabernet Franc, was a gold medal winner at Concours Mondial in 2006 and is a stunning wine. The 2001 Limited Edition ‘D’ (RRP €35) is also a big wine: made from 70% Cabernet Sauvignon and 30% Carmenere, the wine is aged in new French oak and is very well made. For more information about Casa Donosa in Ireland contact John O’Dwyer, Sales Manager at J Donohoe. Tel: (053) 924 2400 email: jodwyer@jdonohoe.com

Uruguayan Wine Fair Wines of Uruguay’s 2007 Uruguay Wine Fair takes place on Monday, June 25, 2007 at the Hilton Dublin Hotel, Charlemont Place, Dublin 2. The trade tasting runs from 12-6pm. This will be a unique opportunity to taste and learn more about the wines from Uruguay, South America’s best kept secret, while some of the producers travelling to Ireland are seeking representation. Uruguay enjoys an ideal geo-

graphic location to produce fine wines. It is situated in the southern hemisphere, between the 30 and 35 parallels, and neighbours Brazil and Argentina. The Uruguayan climate is influenced by Atlantic breezes, much like Bordeaux, although warmer. While the intensity of sunlight is similar to Argentina and Chile, refreshing currents of cool air from the Antarctic bring down the temperature in the vineyards. The wines produced in Uruguay tend to have lower alcohol content and are similar to New Zealand in terms of their ‘cool climate’ style, with a natural balance of acidity and fruit. Uruguayan wine growers produce wines from red grape varieties such as Cabernet Sauvignon and Merlot, while their whites are made from Chardonnay and Sauvignon Blanc amongst others. However, their flagship grape is the Tannat. For more information, email: info@wineeventireland.com, info@winesofuruguay.com or visit www.winesofuruguay.com.

Gilbeys to Distribute Yellow Tail CASELLA Wines have named Gilbeys of Ireland as exclusive distributor of Yellow Tail for the Irish market. The brand’s rapid rise to achieve number one Australian wine status in several countries around the world has been astonishing. Indeed, it was the most successful launch of any wine brand ever in the USA. Casella eschews the traditional ‘above the line’ approach to brand building, preferring to allow consumers to discover Yellow Tail through sampling activity and this pioneering strategy obviously works. “We are very proud to represent Yellow Tail,” noted Joe Quinsey, General Manager of Gilbeys. “Its extensive range and approachable marketing allows consumers to enjoy wines rather than analyse Angus McPherson from Yellow Tail them. We are really looking forward to havis pictured with Joe Quinsey, General Manager, Gilbeys of Ireland. ing fun with this wine.”


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Retail News would like to thank our sponsors & advertisers for their wonderful support throughout the last 50 years and for our Big Birthday Giveaway

CROSS REFRIGERATION

MUSGRAVE CASH & CARRY


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Wi n Wi n Wi n

BIG BIRTHDAY BONANZA GIVEAWAY Retail News is 50 YEARS OLD and we want to shout about it. In fact, we want YOU to celebrate with us, so we’re giving you the chance to win one of these fantastic BIRTHDAY prizes.

42” LCD

Phillips 42” LCD TV €1,000 holiday voucher Luxury Getaway Break in Ireland GUINNESS HURLING Semi-Final Tickets (pair for 5th & 12th August) with overnight accommodation in Dublin HDD Camcorder Sony Ericsson w880i Music Phone from 3 Olympus Digital Camera FE230 with Case and 1GB Card 2 Nights B&B + 1 dinner in the Zetland Country House Hotel Philips Portable DVD Player 30GB i-Pods MP3 Players Store Vouchers Patio Heater BBQ’s Dinner Vouchers Cases of Champagne, Wine, Spirits, Beer or Soft Drinks Food, Drink, Health & Beauty Hampers x 18 AND MUCH MUCH MORE

To be in with a chance to win one of these INCREDIBLE PRIZES, all you have to do is answer the following questions. 1) Name one retail grocery group? 2) What is the RETAIL NEWS website address? TO ENTER: Send your answers together with your name, address and telephone number to maeve@tarapublishingco.com or on a postcard to: Retail News Birthday Competition, Tara Publishing Co. Ltd, Poolbeg House, 1-2 Poolbeg Street, Dublin 2. Entries must be received by: 19TH July 2007. Only valid in Ireland. Judges decision is final. TERMS AND CONDITIONS APPLY


RN June07Karen Meenan’s Top Tips ●

Beware Sell-Outs: Three Strikes and You’re Out! Selling out of your customers’ preferred brand is flirting with disaster. Your customer will give you just three chances to get your sell-outs sorted or they will leave your store permanently, writes Karen Meenan.

What

annoys your customer most about your shop? Unfriendly staff? Poor hygiene? Or lack of attention to detail when ordering? Sell-outs are a cause of extreme annoyance for your customer, and while they may express concern about staff or hygiene or health & safety issues, customers simply cannot tolerate that you simply did not order sufficient stock. They might excuse the fact that you cannot get friendly staff due to the economic boom, but not having their brand of cigarette or their favourite newspaper is apparently unforgivable.

“Magazines should be treated as carefully as fresh chicken: they will go off just as quickly but without the warning smell.” 54

You can all remember the customer who asked for 20 Marlboro Lights and no, she didn’t want two packets of 10’s, thank you! And what about Magazine sales are seasonal: ‘Business Plus’ the man who huffed enjoyed a strong upturn in sales around the recent general election. and puffed because you had sold out of reason for cranky customers becomes The Irish Times - again! more understandable. You mightn’t The frightening statistic is that even be aware of the level of your customer will give you just three frustration felt at the till point unless chances to get your sell-outs sorted or you happen to be on the wrong end of they will leave you – permanently. the transaction. If in doubt on this So, how do you manage sell-outs score, ask the people at the coal-face without overloading with too much and see if they can remember a recent stock? Start with newspapers, easiest reaction to a sell-out – they will! place to start. Get copies of your There are all sorts of reasons why invoices for the last six weeks from an Irish Times customer could get your bookkeeper and circle every time cranky with you – he might not have you had a title with no returns. completed the crossword last night Selling out of newspapers is bad; and was trying to find the solution for selling out of The Irish Times is 23 across and 16 down, or she might particularly bad. have been looking forward to reading When you find a quiet hour to the property supplement. Whatever examine the last six weeks of returns the reason, it is not a safe assumption and realise that you have been for you to presume that they will consistently selling out, then the


RN June07Karen Meenan’s Top Tips ●

happily buy the Irish Independent, The Star or Irish Examiner just because you have failed to order sufficient stock.

availing of the food offerings in the deli and hot food area, and the smoothie bar and coffee dock were performing extremely well. We took out the invoices for the previous six weeks and circled all the titles which had no returns and simply ordered more stock from The Irish Times, Independent Newspapers, Eason’s or Newspread. We also circled all the titles which had excessive returns (more than 20% returns) and reduced the stock for these titles. This list formed the basis of a weekly fax which was sent to each supplier. The quantities needed were written in pencil and the amounts allowed change with the seasons – for example the rugby season was in full swing when the test began and now the GAA season is in flight. Seasonality is important for sporting titles and also for topical events: for example, ‘Business Plus’ due to the recent election, and ‘You and Your Money’, due to the amount of SSIA cash in circulation.

Test Shop

‘Must Stock’ List

In a test shop, we focused on growing the sales of newspapers and magazines by concentrating on just one thing – sell-outs. Even though this test shop was a very busy one with a great food offering, it seemed to be underperforming in the newsagency category. This shop was not short of customers – there were actually more than 20,000 customers per week – but they were just not buying their newspapers and magazines, but they were clearly

Have you ever wondered why you would have spent an entire afternoon with a representative from either Eason’s or Newspread examining a standing order and making amendments, only to find that a few months later the whole thing had gone off the rails again? The secret to getting your stock levels right is to work on your ‘must stock’ list every single week. So every single Friday, you must arrange for a ‘must stock’ list to be faxed to each supplier with the quantities needed for the coming week,

New comics such as ‘Shaun The Sheep’ are extremely important to your younger customers.

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

56

Selling out of your customers’ newspaper of choice is to be avoided at all costs.

then you examine the sell-outs from the invoice during that week, adjust your ‘must stock’ list and fax again the next Friday. This sounds like a lot of work and maybe it is, but when you consider that no matter what adjustments you make to your standing order either on the phone, in person or on the website – your stock level is automatically adjusted after just two issues. So after just two weeks, your weeklies

Summary – Top Ten Tips 1) Examine the invoices of the last six weeks to get a sales pattern. 2) Circle all sell-outs – increase supply by at least 2 for each title. 3) Circle all excessive returns – decrease supply to achieve acceptable returns. 4) Send a fax to each supplier with the desired quantities needed. 5) Do this every week without fail or the computer will override your request. 6) Open all magazine stock first thing each day to maximise sales on day one. 7) Pay particular attention to high ticket lines. 8) Stay with current trends – particularly of comics. 9) Rotate stock daily – particularly comics. 10) Chart your volume and value sales and watch them grow!


RN June07Karen Meenan’s Top Tips ●

Beware Sell-Outs: Three Strikes and You’re Out! Selling out of your customers’ preferred brand is flirting with disaster. Your customer will give you just three chances to get your sell-outs sorted or they will leave your store permanently, writes Karen Meenan.

What

annoys your customer most about your shop? Unfriendly staff? Poor hygiene? Or lack of attention to detail when ordering? Sell-outs are a cause of extreme annoyance for your customer, and while they may express concern about staff or hygiene or health & safety issues, customers simply cannot tolerate that you simply did not order sufficient stock. They might excuse the fact that you cannot get friendly staff due to the economic boom, but not having their brand of cigarette or their favourite newspaper is apparently unforgivable.

”Magazines should be treated as carefully as fresh chicken: they will go off just as quickly but without the warning smell.” 54

You can all remember the customer who asked for 20 Marlboro Lights and no, she didn’t want two packets of 10’s, thank you! And what about Magazine sales are seasonal: ‘Business Plus’ the man who huffed enjoyed a strong upturn in sales around the recent general election. and puffed because you had sold out of reason for cranky customers becomes The Irish Times - again! more understandable. You mightn’t The frightening statistic is that even be aware of the level of your customer will give you just three frustration felt at the till point unless chances to get your sell-outs sorted or you happen to be on the wrong end of they will leave you – permanently. the transaction. If in doubt on this So, how do you manage sell-outs score, ask the people at the coal-face without overloading with too much and see if they can remember a recent stock? Start with newspapers, easiest reaction to a sell-out – they will! place to start. Get copies of your There are all sorts of reasons why invoices for the last six weeks from an Irish Times customer could get your bookkeeper and circle every time cranky with you – he might not have you had a title with no returns. completed the crossword last night Selling out of newspapers is bad; and was trying to find the solution for selling out of The Irish Times is 23 across and 16 down, or she might particularly bad. have been looking forward to reading When you find a quiet hour to the property supplement. Whatever examine the last six weeks of returns the reason, it is not a safe assumption and realise that you have been for you to presume that they will consistently selling out, then the


RN June07Karen Meenan’s Top Tips ●

happily buy the Irish Independent, The Star or Irish Examiner just because you have failed to order sufficient stock.

availing of the food offerings in the deli and hot food area, and the smoothie bar and coffee dock were performing extremely well. We took out the invoices for the previous six weeks and circled all the titles which had no returns and simply ordered more stock from The Irish Times, Independent Newspapers, Eason’s or Newspread. We also circled all the titles which had excessive returns (more than 20% returns) and reduced the stock for these titles. This list formed the basis of a weekly fax which was sent to each supplier. The quantities needed were written in pencil and the amounts allowed change with the seasons – for example the rugby season was in full swing when the test began and now the GAA season is in flight. Seasonality is important for sporting titles and also for topical events: for example, ‘Business Plus’ due to the recent election, and ‘You and Your Money’, due to the amount of SSIA cash in circulation.

Test Shop

‘Must Stock’ List

In a test shop, we focused on growing the sales of newspapers and magazines by concentrating on just one thing – sell-outs. Even though this test shop was a very busy one with a great food offering, it seemed to be underperforming in the newsagency category. This shop was not short of customers – there were actually more than 20,000 customers per week – but they were just not buying their newspapers and magazines, but they were clearly

Have you ever wondered why you would have spent an entire afternoon with a representative from either Eason’s or Newspread examining a standing order and making amendments, only to find that a few months later the whole thing had gone off the rails again? The secret to getting your stock levels right is to work on your ‘must stock’ list every single week. So every single Friday, you must arrange for a ‘must stock’ list to be faxed to each supplier with the quantities needed for the coming week,

New comics such as ‘Shaun The Sheep’ are extremely important to your younger customers.

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

56

Selling out of your customers’ newspaper of choice is to be avoided at all costs.

then you examine the sell-outs from the invoice during that week, adjust your ‘must stock’ list and fax again the next Friday. This sounds like a lot of work and maybe it is, but when you consider that no matter what adjustments you make to your standing order either on the phone, in person or on the website – your stock level is automatically adjusted after just two issues. So after just two weeks, your weeklies

Summary – Top Ten Tips 1) Examine the invoices of the last six weeks to get a sales pattern. 2) Circle all sell-outs – increase supply by at least 2 for each title. 3) Circle all excessive returns – decrease supply to achieve acceptable returns. 4) Send a fax to each supplier with the desired quantities needed. 5) Do this every week without fail or the computer will override your request. 6) Open all magazine stock first thing each day to maximise sales on day one. 7) Pay particular attention to high ticket lines. 8) Stay with current trends – particularly of comics. 9) Rotate stock daily – particularly comics. 10) Chart your volume and value sales and watch them grow!


RN June07Karen Meenan’s Top Tips ●

(quantity) and value (money) for both magazines and newspapers. Sales of newspapers grew from just over 1,200 titles (quantity) during week 1 to almost 1,900 copies at the end of the test period just four months later. During this time, sales of magazines almost doubled from just over 300 to almost 600 copies. Quantity of newspapers in the test shop grew by 52% in volume and 66% in value. Sales of magazines grew during the test period by 54% in volume and 60% in value. So why did value (money) sales increase at a higher rate that volume (quantity) – well that was all to do with being smart about higher ticket lines on the display The golden rule for pre-school comics is “if stands. The accepted gross margin for this category is 25% - one it’s on the TV, it will sell in your shop”. quarter of the sale of an antique magazine selling for €8 is much increase; and after two months, your more attractive than one quarter of monthly titles are increased, so it is the sale of a €2 woman’s weekly title. not hard to see why this category The most important part of increasing causes so much frustration. sales is to avoid sell-outs (obvious So now you know that if you stay when you spell it out – you can’t sell on top of this job on a weekly basis, what you don’t have) but you must then you are in a better position to also be aware of high ticket lines to maximise your sales, minimise your really maximise your profit. waste and avoid sell-outs.

Increased Volume and Value What was the prize in the test shop? Sales were measured in volume

Stock Rotation Rotate your stock to give a fresh offering every day – remember that magazines go stale almost as quickly

as newspapers – 80% of your sales are made within the first 48 hours of hitting the floor of your shop. Magazines should be treated as carefully as fresh chicken: they will go off just as quickly but without the warning smell. Get your bundles of fresh stock off the floor and onto the display stand first thing in the morning – if you find you are running out of space, cull the titles which have already been on sale for the last few weeks and return them. You don’t have to wait for a recall date to take stock off your stand. And lastly, don’t fall into the trap of returning stock of brand new titles which have just arrived. You will never maximise your sales, either volume or value, if you keep returning brand new titles. New titles are the life-blood of this category, particularly comics. If you still think that Barney is the top seller in the pre-school category, dream on… the golden rule for pre-school comics is – if it is on the TV, it will sell in your shop. So watch out for new launches like Shaun the Sheep, Lazytown, Teenage Mutant Ninja Turtles and Transformers and rotate your stock to let the children see that you have a full and fresh display of titles, just for them. Finally, chart your sales in volume and value terms and watch your category increase.

T HE T EST S HOP : T HE R ESULTS DATE

W/E 5 JAN W/E 12 JAN W/E 19 JAN W/E 26 JAN W/E 2 FEB W/E 9 FEB W/E 16 FEB W/E 23 FEB W/E 2 MAR W/E 9 MAR W/E 16 MAR W/E 23 MAR W/E 30 MAR W/E 6 APR W/E 13 APR W/E 20 APR W/E 27 APR 58

ACTUAL QUANTITY NEWSPAPERS 1,207 1,652 1,721 1,746 1,703 1,773 1,761 1,818 1,929 1,745 1,888 1,483 1,869 1,806 1,445 1,899 1,892

ACTUAL QUANTITY MAGAZINES 314 378 494 449 474 436 514 472 499 501 528 465 509 562 522 573 597

ACTUAL NET SALES EX VAT NEWSPAPERS €1,392 €1,917 €2,026 €2,063 €2,021 €2,008 €2,043 €2,216 €2,485 €2,055 €2,302 €1,802 €2,304 €2,271 €1,839 €2,419 €2,408

ACTUAL NET SALES EX VAT MAGAZINES €944 €1,111 €1,331 €1,204 €1,330 €1,245 €1,318 €1,106 €1,351 €1,353 €1,488 €1,126 €1,305 €1,553 €1,503 €1,449 €1,655


BIRDS EYE SPILLS THE BEANS ON SOYA

New frozen Birds Eye Soya Beans are a scrumptious way to add a nourishing crunch to any meal. Birds Eye Soya Beans can be used straight from the freezer and remain tender and delicious after cooking. They’re a perfect alternative to more traditional vegetables and can be used in the same way we use peas and green beans - in any dish from stir fry to risotto or as a simple and tasty vegetable accompaniment. The Soya foods market is experiencing dramatic growth in Europe, with 20% year on year growth, and has become one of the major success stories in the food industry. Soya is packed with nutrients, including vitamin C, vitamin B1 (thiamine) and folic acid, which are all essential as part of a balanced, nutritious diet. Soya is high in protein, containing essential amino acids and the inclusion of at least 25g of Soya protein per day as part of a diet low in saturated fat can help to reduce blood cholesterol levels. 80g of Soya Beans counts as one of your recommended five daily portions of fruit and vegetables. Paul Kelly, Senior Brand Manager, Birds Eye comments, “Like all our frozen vegetables, our green Soya Beans are picked at their peak to seal in their great taste and goodness. With our proud heritage in bringing fresh vegetables from field to plate, we’re seizing this opportunity to introduce to people a new way to incorporate soya into their lives and at the same time informing them about how frozen vegetables can help us eat a healthier diet.”


RN June07Money Matters ●

The Power of Marketing The benefits of good marketing can be enjoyed by small retailers as well as multinationals, writes Carmel Linnane. “Retailers can reap the rewards of a marketing strategy with a lot more control and direction than most businesses. They are in a position to react rapidly to the needs of their customers and monitor relatively quickly what works and what does not.”

Marketing

is a ploy used lavishly by the giants of the retail world. The big names use it to promote their products on the radio, television, cinema advertising, billboards, the side of buses, basically anywhere there is an audience. The large chains make sure they have a very strong market presence. They achieve this by spending large amounts of money to ensure they use every means possible to put their image out there. However, not everyone has a large marketing budget and smaller enterprises need to cut their cloth to suit their measure. Marketing strategy can be tailored to suit smaller budgets quite effectively. Retailers in particular can reap the rewards of a marketing strategy with a lot more control and direction than most businesses. They are in a position to react rapidly to the needs of their customers and monitor relatively quickly what works and what does not. Knowing your market is vital and increasingly so in the ever more competitive retail industry. One of the advantages of a retail business is that you interface directly with your customer. You are not selling widgets to Cambodia. You are selling products to people in your neighbourhood

or passing trade. It is not going to break the bank to set up a customer survey to help identify your audience in more detail.

Survey Even if you only establish an age profile of your customer base, you are still moving in the right direction. Now and again, a business will set up and impose such a ‘must have’ image that people will travel distances to get what it has to offer. This is the exception, however, not the norm. For most retailers, market research of their particular area is vital if they are to effectively service their target audience. You need to get some insight into the socio-economic profile of your customers, their motivations for making a purchase from the shop and the levels of customer service and satisfaction. This information can then be used to measure and improve your retail operation and to ensure that your range is being effectively targeted to suit your customers. For example, if your research shows that customers are primarily from a low income socio-economic grouping, then to maximise sales, your merchandise range should reflect this in lower prices and valuefor-money products. However, if your

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Uncle Ben's and Dolmio wish Retail News a very Happy 50th Birthday

Little Italy Ltd Renowned as Importers, Distributors & Specialists of Fine Italian Food Products, Little Italy (on Dublin’s North King Street) is open to both retail and wholesale customers. Their product range includes: Lavazza Coffee, Sanpellegrino Mineral Water, Parmesan Reggiano and Grana, Montorsi Meats, Redoro & Salvadori Olive Oils, De Nigris Balsamic Vinegar, Bauli Confectionery, Amaretti di Saronno Biscuits, Tarall’oro and Paone Pasta, Molino Iaquone ‘00’ Pizza Flour, Ista Preserved Vegetables, La Bella San Marzano Peeled Tomatoes, Parmalat Pomi tomatoes, Bove and Minini wines, and lots, lots more…

Happy Birthday Retail News!!

P.J.Carroll & Company Ltd would like to congratulate you on your 50th year in business. As we are celebrating the centenary and success of Dunhill this year, we would like to join you in your celebrations and we look forward to the day when you too celebrate the centenary of Retail News. We look forward to collaborating with you and receiving your publication throughout the next 50 years.

Pembroke Communications, a member of the Publicis QMP Group, wishes Retail News a very Happy Birthday. Pembroke Communications have specialised in Corporate Communications, Sponsorship, and Consumer and Retail PR since 1980. For more see www.pembrokecomms.ie or phone Colm Cronin, Sarah Wagstaff or Michael O'Keeffe 01-649 6486.

Congratulations to Retail News on their 50th Birthday

MAGAZINE MAILING SERVICES LTD. PORTSIDE BUSINESS CENTRE, EAST WALL ROAD, DUBLIN 3. TEL: 836 4832 / 836 3599


RN June07Money Matters ●

customers are in a high-income socioeconomic grouping, then you should be able to support higher priced goods, luxury goods and a broader range of products within the store. Set up a simple survey: • Which identifies who your customers are and what are their needs; • Which profiles your customers by age, income, occupation; • Know the reasons why customers shop at your store. Is it the service, convenience, dependability, quality, range? • Seek suggestions from your best customers on ways to improve your service; • Use a store questionnaire to help in determining customers’ needs.

importance of a great logo, identity and colour scheme and they know that this branding must be extended onto everything. This means your signage, Point of Sale materials, posters, flyers, bags, gift wrapping, road sign banners, everything must conform to the logo. You do not need to read the name to recognize the Nike swish or the McDonald’s ‘M’ sign. ‘Keep it simple and distinctive’ is the motto. Once you decide on the brand name and logo, your will need a plan to reach your audience on an ongoing basis. For example: (a)

(b)

Knowledge Getting to know your customer is one of the main secrets of success in retailing. Buyers in large companies seldom go on to the shop floor and talk to their customers, but buyers within smaller retail outlets are much closer to their market and are often on the shop floor already. Using this time to learn about your customers can provide you with vital insights which will help you develop a better range. Building customer profiles will help you create target customer groups. This allows you to divide your product range into appropriately sized sections of relevant merchandise at prices your customer can afford. While this may not capture the individual requirements of every customer, if you manage your range in this way, your shop will be relevant to most customers and will encourage them to buy.

Building Your Brand Once you define your customer profile and product needs, then it time to build your specific, easily identifiable brand. Branding displays the personality or identity of your retail outlet. You do not have to be a big company to do this. You just have to streamline your image to give yourself an identifiable face. Franchise operations excel at this. They know the

(c) (d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

Test different aspects for promoting business: new offers — new items — new prices — special announcements. What type of advertising methods work best (direct mail, newspaper, television, radio)? Copy proven business formulas of other successful retail firms. Emphasise areas of appeal such as: special pack sizes, lower prices, better service, wider selection, convenient hours. Set up an inventory control system in regards to shrinkage, performance, amount of merchandise, mark-up, profit and turnover. Set up a system for tracking slow-moving merchandise and those products that are your best-sellers. Increase your sales transactions by offering better prices, more value, sales incentives, or add-ons. Ensure that you join trade associations and subscribe to newsletters and trade publications to keep you informed. Involve employees in making suggestions for improving business and cutting costs. Implement a program to reward your employees for their extra efforts and innovative ideas. Empower employees to make important decisions, even if it means losing a small amount of money to make your customers happy.

(l)

Build relationships with customers. Promote customer loyalty with ongoing loyalty stamps or offers (m) Have a tracking system for how many customers shop in your store every day

E-sales For retailers that have a product line suitable for online sales, you could consider building an esales link. At the very least, design a website showing your outlet, products, opening hours and other relevant information. Create a presence for yourself. Many of the larger retailers have found on-line shopping to be extremely successful, but what’s to stop you from doing the same thing? If you sell products online, you can buy into a package which does order tracking, product management, multiple categories, special offers, best sellers, customisable shipping tables and whatever else you decide is worthwhile knowing. But there is no point in starting something unless you are willing to monitor it. That means a budget should be allocated to the ongoing web marketing and maintenance of the site. New developments in paid advertising can allow site owners to target specific customers within specific geographical regions who are actively searching for your product. The value of this type of marketing is that the advertisement is only paid for when the user actually visits your site. This is called pay-per-click marketing and if done well, can be very effective. In summary, a holistic approach to knowing the customer and tailoring your marketing to target precise groupings should be your main goal. Creating a catchy brand, extending this brand into all your marketing materials/products and providing sufficient resources to adequately promote your products both online and off will show results. It does not necessarily mean spending a wad of money but it does require careful planning if it is to pay dividends.

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Congratulations to Retail News From Future Print Printers of Quality Product For the Business Sector. www.futureprint.ie

Happy Birthday from GS1 Ireland GS1 Ireland The Nutley Building, Merrion Road, Dublin 4 Tel: 01-208 0660 Fax: 01-208 0670 Web: www.gs1.org

Congratulations on your 50th Birthday from Cuisine de France, who have been tantalising your taste buds with freshly baked products since 1989. Cuisine de France Belgard Square, Tallaght, Dublin 24 Tel: 01-405 7200 Fax: 01-405 7290 Web: www.cuisinedefrance.com

Happy Birthday Retail News Energetically breaking news for 50 years! Best wishes from Lucozade Energy - Ireland’s No. 1 Energy Drink And all at GlaxoSmithKline Consumer Healthcare

“Kelkin would like to wish Retail News a very Happy 50th Birthday”

Ambient food distributors for retail and foodservices. Own brands Chambo and Jumel. Also private label. Including soups, sauces, bouillons, jams. Very competitive prices. Also Spain’s number one confectionery brand El Almendro. www.kerinsfoods.eu Tel: 01-281 9474 Fax: 01-281 9517 Happy Birthday Retail News


RN June07Update ●

New Bulmers Light TV Campaign FOUR years after its highly successful introduction onto the Irish market, Bulmers Light has recently launched a new 30-second TV advert, entitled ‘Dandelion’. The new ad brings the concept of the floating bottle to life, and the catchy soundtrack, ‘A Minha Menina’ by The Bees, is sure to have everyone humming along all summer. Ann Meaney, Brand Manager, Bulmers Light, said, “This new commercial communicates the light proposition, and highlights the fact that Bulmers Light is lower in calories.” Devised by Young Euro RSCG and directed by Des Mullen at Rocket Productions, the campaign will run across all television stations until September and will be supported by an outdoor campaign using the tagline ‘Light by Nature’.

Birds Eye Dispels Myths About Frozen Vegetables BIRDS Eye Ireland has launched a €550,000 marketing campaign to highlight the truth about frozen vegetables. Featuring food critic Giles Coren, the campaign includes TV, radio, and press advertising, together with in-store promotional activity. The 30-second TV ad highlights how frozen vegetables retain up to 40% more vitamins than fresh vegetables. Giles Coren comments, “Vitamin levels drop as soon as vegetables are picked, which means they can lose up to 40% of Vitamin C.” Paul Kelly, Senior Brand Manager, Birds Eye said that these findings independently substantiate the fact that freezing preserves the vitamin and nutrient content of vegetables just hours after they are picked, whereas the nutritional content of fresh vegetables declines over time.

Cool Springs Launch New Fish SLIGO-based Cool Springs have launched Arctic Charr onto the Irish market. However, this is not a new species of seafood. Indeed, Arctic Charr are native to the deep glacial lakes of western Ireland since the last ice age, where they thrive in pure, cold conditions. Eggs are imported from Iceland, as the native Irish Arctic Charr are protected. The eggs are then hatched in a hatchery in Galway, before being moved to Cloonacool, where Bill Carty (pictured) and his wife, Mari Johnston, are the only people in Ireland exclusively farming Arctic Charr. Arctic Charr are low in fat and rich in essential nutrients, as well as being an excellent source of Omega 3.

Tayto Sunflower Days TAYTO have once again teamed up with Hospice, to support their national fundraiser, Hospice Sunflower Days. To celebrate the fact that Tayto Crisps are cooked in 100% pure sunflower oil, Tayto ran a national sunflower radio advertising campaign, in order to raise awareness and spirits. All money raised during the Sunflowers Days collection stays locally. Pictured are (l-r): Rita Kirwan, Marketing Manager, Tayto, Eugene Murray and 2FM’s Nikki Hayes, who launched the Sunflower Days collection at St Stephen’s Green in Dublin.

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Congratulations on your 50th Anniversary Wishing Retail news all the best on their 50th Anniversary and many more years of success from the team at big Al’s. Retail News is valued as a means of promoting our new products in the trade Kepak Convenience Foods Unit 3 Block 10 Blanchardstown Corporate Park Blanchardstown Dublin 15 Tel: 01 822 2400

Wishing Retail News a very happy 50th Birthday from BR Marketing - distributors of quality brands including Pataks, Blue Dragon, Capilano Honey, Monini Olive Oil, Kuhne Pickles and Chio Snacks. www.brmark.ie

Best Wishes from

Helping you make better Marketing Decisions

Congratulations to Retail News for 50 years of dedication to the Irish Grocery Trade from C&D Foods Ltd, Edgeworthstown, Co. Longford Tel: 043 72100


SMA Host Infant Nutrition Seminar

RN June07Update ●

SMA Nutrition hosted a free educational seminar on ‘Significant Development in Infant Nutrition’ in the Four Seasons Hotel, Dublin, recently, to inform healthcare professionals about the latest development in infant nutrition – alpha-lactalbumin (alpha-protein). Invaluable information was supplied by the speakers, who are at the forefront of infant nutrition and were able to supply excellent advice on how to deal with parents’ questions about infant feeding. Pictured are speakers (l-r): Dr Eric Lien (Adjunct Professor, Department of Food Science and Human Nutrition, University of Illinois, USA); Ita Saul, Dietician Manager, Our Lady’s Children’s Hospital, Crumlin; and Dr Atul Singhal (Reader in Paediatric Nutrition at the Institute of Child Health, University College, London and Honorary Consultant Paediatrician at Great Ormond Street and Whittington Hospitals).

Emo Oil Meets the Needs of Drivers 24/7 EMO Oil opened its latest SuperFuel 24 Fuelcard facility in Greenogue Business Park in Rathcoole recently. The timely opening of this site meets the needs of large vehicle drivers recently banned from the city centre, making it the perfect place to refuel along the Naas Road (N7) at any time of day or night. Providing 24-hour service, seven days a week, this new facility is a safe and fast refuelling point for large vehicles. In the coming weeks the Greenogue Superfuel 24 fuelcard site will include a deli, restaurant and shop.

Bisto Book of the Year Winners THE overall winner of the Bisto Book of the Year Awards ‘06/’07 was John Boyne for his book ‘The Boy in the Striped Pyjamas’. John was presented with the newly commissioned Bisto Book of the Year Trophy and a cheque for €10,000 by Senator David Norris. This is Bisto’s seventeenth year sponsoring these prestigious awards which recognise excellence in the field of children’s literature by Irish authors, illustrators and publishers. Award winner John Boyne is pictured (right) with Mark Dorman, Marketing and Business Development Director, Premier Foods Ireland.

Galtee Breakfast Club Hits the Road CHEF Ruairy O’Coileain; Tim Ryan, Galtee Brand Manager; Kevin Donnelly, Breeo Business Development Director; Niamh Kennedy, OgilvyOne Worldwide Account Director; and Chef Niall O’Shea, are pictured at the launch of the Galtee Breakfast Club Roadshow, which is taking to the highways and byways of Ireland over the summer, spreading the news that the next generation rasher has arrived, ‘The Big One’. The Galtee Breakfast Club is also giving consumers the chance to win

one of 10 weekend stays for up to five people in an Irish Landmark Trust lighthouse, as well as a number of Tefal frying pans.

National BBQ Campaign Launches CELEBRITY Chef Kevin Dundon is pictured with models Geanna Gorman and Roisin Finnegan at the launch of www.nationalbbq.ie for the 3rd Irish National BBQ Summer Promotion. Ireland’s 3rd National BBQ Promotion kick started this year with National BBQ Week, which ran from June 4-10. The overall National BBQ Promotion 2007 aims to increase the popular-

ity of BBQ’ing in Ireland and encourage gastro alfresco dining and entertaining, and includes a range of activities and promotions, including a nationwide BarbiBus tour visiting supermarkets across the country; and Ireland’s Best BBQer competition, the winner of which will receive a fantastic trip to the world’s largest BBQ competition, in Memphis USA. 67


RN June07Retail News Interview ●

“As the economy has changed, people began travelling more and bringing lots of culinary experience home. This experience suits our products very well, since we are much more interested in being adventurous with flavours and tastes.”

James Beaton, Chairman and co-founder of Discovery Foods.

A Unique Discovery! Launching a range of new products alongside a complete rebranding exercise, Discovery Foods are at the frontline of adventurous tastes.

Discovery

Foods, the masterminds behind a vast range of Mexican sauces, seasonings, accompaniments and tortillas, have been favourites amongst Irish consumers for many years. This brand’s delightful ethnic foods and spicy flavours are big sellers, but the company is more than just a business operation – it is an innovator that focuses on creating authentic (often completely original) tastes. Discovery’s passion for adventurous foods stems from the top down. James Beaton, Chairman and co-

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founder of Discovery Foods, readily admits that he loves finding new tastes. RETAIL NEWS meets Beaton in Dublin where he has arrived to launch the brand’s new identity and products. “We love this market because it has emerged so much over the last five years,” Beaton enthuses. “As the economy has changed, people began travelling more and bringing lots of culinary experience home. This experience suits our products very well, since we are much more interested in being adventurous with flavours and tastes. In Ireland, we are represented

in the major retailers, but there are also a lot of smaller shops across the country, which is great. We have less of them now in England.” Where did it all begin? “My father-in-law had been a Kentucky Chicken franchisee. He thought it would be a good idea to diversify so he bought two Mexican restaurants in London and had a wholesale business that supplied the restaurants with seasonings,” he recalls. “You couldn’t buy anything Mexican for love nor money in those days. I came along and started working for him in the wholesale business. It was so much fun selling that I thought there was an opportunity to sell Mexican food, which is why we set up Discovery.”

The Secrets of Sauce In 1989, Beaton established the company with three employees, including himself and his wife’s father. In those early stages, while he was still working as a wholesaler, Beaton received a call from a Texan chef in Cardiff who was serving Mexican food to Welsh people. Beaton visited the chef, sampled everything on the menu and fell in love with the food. The pair travelled on a road-show, inviting wholesalers and customers to sample the sauces, while the Texan chef cooked. The reaction was so impressive that Beaton bought the chef’s recipes, creating Discovery’s first three sauces: Creole, Enchilada, and Mexican. “Before we even had any packaging, I took those sauces to supermarkets and asked them if they had any interest,” he remembers. “They said that there was a lot of competition in the market and unless we could bring a lot of marketing money to the table, they weren’t inter-


RN June07Retail News Interview ●

ested. I asked them to try the sauces just to see if I was on the right track. They loved them and did a complete about-turn, saying ‘We’ll buy them if you bottle them!’ That’s how it all started!” Discovery moved their products directly into major UK retailers like Sainsburys and Tesco and at a large food show a few years later, they met RHM (now Premier Foods Ireland). Hence, the Irish market opened up to a range of authentic-tasting Mexican sauces, seasonings and accompaniments. A team of three people, which includes James Beaton, now travels the world looking for ideas for new recipes. One employee is skilled at making recipes in the kitchen but also upscaling recipes for production. Since you cannot simply take a multiplication of a recipe in order to reach a bigger scale, such a talent is priceless.

New Flavours How do Discovery Foods find new flavours? “If we wanted to create a Gumbo - a dish from Louisiana - then we would typically eat it in as many places as possible, from airports to restaurants to people’s homes. After that, you can discern what is a really good Gumbo,” he states. “We love deep flavours with a complexity, giving you a taste at the front, the middle, and the back of your mouth simultaneously. “When you try our products, you find that there are many different layers. Sometimes we look for authentic traditional flavour, other times we are so intrigued by the interesting way that people combine flavours. We’re traditional where it is appropriate, but if it’s new and daring, we will explore that too.” From the smoky, spicier flavours of the Deep South through to ”Sometimes the salsa we look for good-

authentic traditional flavour, other times we are so intrigued by the interesting way that people combine flavours. We’re traditional where it is appropriate, but if it’s new and daring, we will explore that too.”

ness of Mexico, then on to the chilli and spice capital of the Caribbean, Discovery Foods do not get too hung up on geography, although indigenous people have praised their products. Mexicans, for example, have written to Discovery claimDiscovery Foods have rebranded their product range, which ing that their now comes with the strapline, ‘More Adventurous Tastes’. Enchilada Sauce is better than anything they can buy with a spicy aromatic taste, while fruity in the US. Others from across the mango and pineapple salsa adds a tropglobe write asking where they can ical zest. Brazilian Style Bean, Lime & purchase Discovery’s Fajita Seasoning. Coriander incorporates ginger, cloves, The company is currently undergocumin and molasses, with a zesty lime, ing a rebranding, scrapping the old black-eye bean and coriander salsa. Discovery strapline ‘True Taste of the The company is also launching new Americas’ in favour of ‘More wrap kits (consisting of 8 soft flour Adventurous Tastes’. The brand’s comwraps, seasoning mix and salsa) and binations of flavours are evolving to two-step sauces (a 360g jar of sauce such an extent that they thought that and 10g of seasoning), retailing at the former description was too limiting. €4.77 and €3.20 respectively. The Irish “In Louisiana, I found restaurants market can expect plenty more innovadoing Asian-Cajun. I would love to tion in the near future – Discovery embrace those type of things when we Foods recently launched a Cactus find them, so the new strapline flavour in the UK. “Without the sharp describes our products more clearly,” bits” Beaton laughs. Beaton explains. James Beaton says that the Growing Company brand’s biggest selling product is What began as a three-man operation Tortillas, a soft bread from Mexico. in 1989 now employs 400 with a head “The tortilla is no longer Mexican office in High Wycombe and factories in because it is such a popular means to Daventry and Milton Keynes. In wrapping up almost anything. A lot of February 2007, James Beaton brought Turkish kebab shops in the UK and in a new partner - a large family-owned even Turkey now use pita bread for Swedish business that is also involved wrapping up their kebabs. This humin producing tortillas, sauces and seable Mexican bread is such an easy, sonings. “We’re part of a much bigger tasty, rollable food. Wherever you go, organisation now,” says Beaton. “Being there is a different type of wrapping part of something bigger, we can get bread – from Mandarin pancakes in more cost benefits, marketing support, China to Nan bread in India – but tormarketing money and investment.” tillas are probably the best of all of Looking to the future, James them.” Beaton hopes to make Discovery Foods the leading Tex-Mex food company in the marketplace. “We want New Product Range the opportunity to let Discovery be Discovery’s newly launched products everything that it can be, discovering are focusing on Latino flavours, partly foods from wider areas, bringing a because of the interest in Latin sense of excitement and adventurousAmerican dance and music. Jamaican ness to people’s palates,” he enthuses. Jerk & Mellow Mango Sauce, for exam“I believe we can achieve that goal.” ple, mixes paprika, pepper and thyme, 69


RN June07Bread ●

Earning A Crust! Premium product offerings, speciality ranges and functional products with added health benefits are fuelling growth in Ireland’s well-developed bread market.

The

bread market in Ireland is quite developed versus bread markets elsewhere, due largely to the high quality and freshness of product offering available on-shelf. Indeed, the bread category is currently one of the most dynamic sectors within the Irish grocery market. New product development continues to drive the category, while convenience will also continue to be a key factor going forward. The continued growth of the brown bread sector is also a major factor, with consumers increasingly concerned about their health and actively seeking out products with functional properties and added health benefits, such as fibre. The bread sector in-store is no longer simply a ‘wall’ of pre-sliced and wrapped loaves, complemented by a smattering of regional and speciality products. New product development 70

by all the main suppliers is driving growth, particularly in terms of premium products, ethnic breads, speciality breads and products with perceived health benefits. The morning goods market continues to grow, enjoying the benefits of a buoyant economy. Consumers are increasingly trading up to valueadded bakery goods, with massive growth in the realm of paninis, ciabattas and bagels, as well as premiumpriced indulgence products, such as Danish pastries, croissants and muffins.

Cuisine de France Cusine de France have a proud tradition in the manufacturing of French bread since their inception in 1989 and their recipe for French bread is still as natural and delicious as ever. In their state-of-the-art manufacturing plant in Tallaght, they combine the finest French flour with the natural ingredients of salt, yeast and water to create Ireland’s best-selling French bread products. Cuisine de France’s commitment to quality is second to none, operating with EFSIS higher level accreditation for over 10 years, meaning that when retailers buy a Cuisine de France product, they are offering their customers the very best in French bread. Boasting a wide and varied range from the delicious Parisien, with its signature red and white bag, to everyone’s favourite demi baguette or the small bouchon or petit pain - there is a bread for every occasion. In response to the growing consumer demand for convenient high quality products, Cuisine de France offer a unique range of Bake At Home bread and confectionery. The range includes authentic French bread and Italian ciabattas, as well as mouthwatering croissants and bagels. Your

In response to the growing consumer demand for convenient high quality products, Cuisine de France At Home includes mouth-watering bagels, which consumers can bake in 8-12 minutes.

customers can now become professional bakers by simply taking the Cuisine de France At Home breads out of their packs and baking them for 8-12 minutes in an oven. In the recent past, a strong demand has emerged across the Irish retail market for Eastern European products, and traditional breads are no exception. Inspired by the everdiversifying tastes of consumers, Cuisine de France have launched a new and unique range of authentic breads from Eastern Europe. Retailers can choose to bake these loaves fresh in their store daily or opt for the convenience of the ‘thaw & serve’ pre-sliced Poppy Seed Baltic Loaf. Cuisine de France are helping retailers to launch these breads with impact. A comprehensive point of sale package in Polish/English (including shelf talkers, wobblers, bread bands


RN June07Bread ●

New Round Seeded Rye bread from Cuisine de France.

and customer information leaflets) along with a merchandising solution for all stores, is available nationwide.

breads, including standard white and brown sliced breads, specialty lines, high fibre and health focused breads and hamburger buns. This extensive product portfolio gives retailers a consumer offering of bread and buns unrivalled by any other bakery in Ireland. Their toast range, which includes Toastie White, Doorsteps White, Nutty Toast and Nutty Doorsteps, are firm family favourites with Irish consumers. An integral part of the Johnston Mooney & O’Brien ethos is their commitment to innovation, continuous

Johnston Mooney & O’Brien Johnston Mooney & O’Brien is one of the biggest and most progressive bakeries in Ireland. For more than 170 years, Johnston Mooney & O’Brien has been synonymous with the best tasting baked breads and morning goods in Ireland. Johnston Mooney & O’Brien prides itself on its comprehensive range of daily fresh

Johnston Mooney & O’Brien prides itself on its comprehensive range of daily fresh breads, including standard white and brown sliced breads, specialty lines, high fibre and health focused breads and hamburger buns. 72

improvement and investment in their products, services and brand. Their new handy toast range, which is being launched this month, is sure to prove extremely popular with consumers.

Pat the Baker

the company launched a new multigrain bread recently, which is proving extremely popular with Irish consumers, while their portfolio also includes a 400g range in white, brown, wholemeal and multigrain. “R&D is an integral part of our strategy,” explains Eugene Baker, Marketing Manager. “We are always looking for new, innovative products, and constantly adding to the range, in line with consumer demand. Our job is to give consumers the products they want. “Our strategy is obviously working,” he continues, “as we are enjoying strong growth, which has been sustained over a number of years. We will continue to develop new ranges to answer the needs of the marketplace.” Pat the Baker support their entire range with heavyweight TV and radio advertising, as well as high profile sponsorships. In recent months, the company announced a major three year, 32-county sponsorship deal with the Ladies Gaelic Football Association. The Post Primary Schools competitions at Senior A, B and C levels and the Junior A, B and C competitions are all sponsored by Pat The Baker. To celebrate the sponsorship, the company donated branded Pat The Baker footballs into every secondary school in the country which is involved in Ladies Gaelic Football.

Pat the Baker have introduced three new traditional soda breads to their range: Brown, Fruit and White. These products will appeal to both existing Pat The Baker customers but also drive additional sales by offering consumers more choice. The three new soda breads offer traditional baking with a presentation and taste that is upto-date with consumer requirements. All three products are yeast-free and are presented in extremely eye-catching packs which maximise product visibility. The launch is being supported with a heavyweight advertising campaign, including television, radio and outdoor. The three new soda breads are the latest additions to Pat the Baker’s already comprehensive product portfolio, Pat the Baker have introduced three new which is constantly being traditional soda breads to their range: updated in line with conBrown, Fruit and White. sumer demands. Indeed,


RN June07Bread ●

Brennans 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 over many years and the company is committed to continuing this investment. Brennans Half Pans dominate the marketplace, claiming a 65% value share of the total 400g pans sector (Source: Source ACNielsen Scan, Multiples/Groups/Forecourts 52 w/e Jan06). It was Brennans’ own consumer research that highlighted the fact that convenience is increasingly important to Irish consumers lifestyles. The range includes HalfPan White, Half Toast, HalfWholemeal and HalfWholegrain.

choosing which brand to buy, the key differentiating factor between brands is freshness. Brennans is purchased by all age groups, social classes and household types and has a presence in 72% of all Irish households.

Irish Pride

The Brennans Family Pan, in its distinctive premium wax packaging, is synonymous with freshness.

Commitment to quality and innovation drives new product development and product improvement in Irish Pride Bakeries. The Half Pan sector is one of the key growth areas in the bread market. Irish Pride Bakeries recognised the importance of this area and in 2006, they re-developed their Half Pan offering to appeal to the Irish consumer. The Irish Pride Half Pan range is one of the main drivers in the category, growing 104% vs a year ago (Source: AC Nielsen Total Scantrack Value Growth MAT, April 22, 2007). Irish Pride recently extended their Half Pan offering by launching Irish Pride Healthy Grain Half Pan. This is a unique offering in the market and the benefits of the product include:

The Natural Recipe Bread Company range of breads has been an outstanding success for Brennans. These new craft bakery products have delighted consumers nationwide. The creation of bread is a magical experience – more an art than a science. Brennans have recaptured this magic in their National Recipe Bread range; delicious recipes that combine traditional tastes and flavours with new and exciting ingredients. This range includes Crunchy Wholemeal with - Fortified with Folic Acid; Pumpkin and Poppy Seed, - High in Fibre; Crunchy Oatmeal with - Contains Linseed – a valuable Wheatgerm and Kibbled Oats, source of Omega-3; Crunchy Rye with Sunflower Seeds - No hydrogenated vegetable oil. and Crunchy Bran with Buckwheat. New to the range is the Natural Irish Pride will continue to identiRecipe 7 Grain. fy market trends and focus on NPD, Despite some changes in eating guaranteeing that they will continue The Natural Recipe Bread Company habits and the increasing presence to satisfy the needs of consumers. range of breads from Brennans includes of international food, the sliced pan the popular Crunchy Wholemeal with is seen by Irish Pumpkin and Poppy Seed. consumers as very much central The brown bread sector also conto their requiretinues to drive the category, in particments. The ular Brennans Wholegrain and Brennans Family Wholemeal products, as health-conPan, in its distincscious consumers are seeking out tive premium wax products with health benefits such as packaging, is synfibre. onymous with Brennans Morning Goods range freshness. has added considerable choice to Irish consumers health-conscious consumers. The favour bread for its range includes Granary, Buttermilk versatility and conSoda, Hi-Fibre Bran, Wholewheat venience, its taste, Soda and Traditional Brown Soda. value for money, This strong range has become ever variety and general popular with consumers who want the nutritional content. healthy ‘home away from home’ taste Irish Pride re-developed their Half Pan offering to appeal However, when and quality. to the Irish consumer. 74


Soda So Good

Three new traditional sodas from Pat the Baker Brown, Fruit, White. The Opportunity • Pat The Baker continues to extend its range of products in response to consumer trends and demands. • We are excited about the launch of our three new traditional sodas. • These products will appeal to both existing Pat The Baker customers but also drive additional sales by offering more choice.

The Product • Our three new sodas offer traditional baking with a presentation and taste that is up to date with consumer requirements. • They are yeast free. • Original packaging maximizing product visibility.

Media Support • Television, radio and outdoor advertising.


RN June07Pet Food ●

Tete a Pet We profile the ‘premiumisation’ of the €92m Irish pet food sector, as Irish customers continue to pamper their four-legged friends.

The

pet-care market in Ireland is worth over €92m and is growing at 9% (Source: ACNielsen February 18, 2007), making it a valuable one for retailers. The market continues to grow in value terms primarily through new product development, with the main players continuously updating their portfolio with new, premium offerings, perfectly meeting consumers’ desire to pamper their pets. In terms of market trends, the complete dry dog-food market continues to develop, as does the premium snacks sector, along with additional growth in the area of snacks and treats, particularly those with functional properties. The market is further expanding to include a new super-premium dry cat food category. The wet food sector, for both cats and dogs, is experiencing a similar pattern, with consumers trading up to 76

premium offerings, particularly single-serve or pouch formats, and a massive move towards multi-packs (again with pouch multi-packs very much to the fore). Basically, Irish consumers are willing to trade up to premium and superpremium brands for their pets, particularly those with functional qualities and perceived health benefits for their four-legged friends. 2006 saw an increase in humanstyle pet products on the shelves, according to Euromonitor International’s ‘Pet Food And Pet Care Products in Ireland’ market report, which charts the ‘humanisation’ of the sector. Products are now being marketed, highlighting the facts that they contain natural ingredients, are lowin fat, or contribute to improved dental hygiene, as well as catering towards different life stages of the animal. Consumers are driving this demand as they are increasingly aware of their pet’s nutritional requirements. Many of these ranges carry veterinary endorsements and

guidance, which is adding to their popularity. The small pet population is rising in Ireland, according to the Euromonitor report, due to a trend towards urbanisation, and because the smaller pet is perceived to be easier to maintain. Increased urbanisation is leading to space shortages in cities, and so providing space for larger animals is difficult. Combined with busy consumer lifestyles, high maintenance pets are increasingly being eschewed for cats, small mammals and fish. These pets are perceived to be reasonably self sufficient, and do not need as much attention as dogs. As a result the cat population is now rising faster than dogs, at around 8% year on year, with other pets growing at around 4%.

Mackle Petfoods Mackle Petfoods have been making increasing inroads into the pet food market, utilising a canny understanding of consumer trends and launching a series of highly successful new prod-

Mackle Petfoods has recently launched Brandy in a six-can variety pack, an Original six-pack and a new fully shrink-wrapped 12 can variety pack to meet market demand.


RN June07Pet Food ●

Mackle Petfoods have just introduced two new flashed packs, 6-for-5 and 12-for10 can variety packs, in the popular Cat Club range.

Cat Club’s three-pack range, is price marked at €1.99, proving extremely popular with customers.

ucts and product combinations. Established by John Mackle in 1972, Mackle Petfoods have undertaken huge investment over the last three years and now operate two state-ofthe-art production facilities on a virtually continuous basis. But the company’s output potential is matched by its innovative approach to new product development and to the ever changing demands of pet owners. In fact, in the first four months of 2007, Mackle launched no less than five new products within their leading Brandy and Cat Club brands, reflecting the consumer move towards multi-packs within the wet pet food sector. Latest research shows that pet owners “look to vary the diet of their pets and offer the best food they can afford” (Mintel Cat and Dog Food, May 2006). Multipacks allow consumers to do this in a cost effective way. Brandy Dog Food is Mackle Petfoods’ flagship brand, claiming 15% share of the wet dog food market in Ireland. Brandy has seen phenomenal success in the three-pack formats, with over 20% year on year growth for 78

2006, according to the company. “We attribute the brand’s success to the simple fact that dogs really do love the taste of Brandy and their owners recognise that, as well as appreciating the fact that Brandy is extremely competitively priced,” noted John Mackle, Managing Director of Mackle Pet Foods. However, despite its competitive pricing, Brandy typically offers retailers high double digit margins. With the market shifting towards multi-packs, Mackle Petfoods, has recently launched Brandy in a sixcan variety pack, which contains two of each of the favourite meaty flavours – Beef, Chicken and Rabbit – as well as an Original six-pack. For consumers wishing to trade up even further, there’s a new fully shrinkwrapped 12 can variety pack. Packaging for each of the new products fully utilises the strong design that was such a success when Mackle revamped the brand in 2005. These new lines really stand out on shelf, which is of the utmost importance in such a low involvement category. Mackle Petfoods also manufacture

Cat Club cat food, which has recently been revamped, making it grab the customer’s attention with a bright colour, energetic design and unbeatable on-pack offers. With the market trends in cat food matching those in dog food, (i.e. the move to multipacks), Mackle Petfoods have just introduced two new flashed packs, 6for-5 and 12-for-10 can variety packs, to complement their existing threepack range, which is price marked at €1.99. These new packs offer more flexibility and cost effectiveness for those growing numbers of customers who wish to vary their cat’s diet. With 80% of cat food now purchased as chunks in jelly or gravy, Cat Club’s formulation has moved to chunks in jelly to mirror this trend, again offering the customer what they want. Cat Club is available in three flavours: Chicken & Liver, Beef & Game and Salmon & Trout, all in chunks and jelly. Mackle Petfoods also have a dry pet food offering called Cat Club Complete that is available in Chicken & Liver and Salmon & Tuna varieties in a 400g bag, as well as a 2kg bag in Chicken & Liver flavour. These have also been revamped in the bright pink packaging design and will be available later this month. Both Mackle Petfoods’ Brandy and Cat Club ranges will be supported throughout 2007 with comprehensive marketing support, including TV advertising (Brandy), magazine advertising, web, direct mail, sponsorship and more. “Innovation is crucial in the pet food market,” concludes John Mackle, “and later this year we will be unveiling possibly our most exciting new product yet, but that’s a story for another day!”

Mars Ireland Mars Ireland claims leadership of the Irish pet-care sector, with almost 62% share (Source: ACNielsen February 18, 2007). The company maintains that it is driving growth in the market through continuous innovation, with its Pedigree and Whiskas brands claiming market leadership within their categories. Mars Ireland’s brands also include Cesar, Sheba, Pal, Kitekat, Catsan and Frolic. The company attribute Pedigree’s


RN June07Pet Food ●

The vast Mars Ireland pet food range includes market leaders, Pedigree and Whiskas, along with Cesar, Sheba, Pal, Kitekat, Catsan and Frolic.

continued success to their quality range that caters for every dog’s size and life stage, from puppy to old age. The extensive Pedigree Complete range drives growth in the dry dogfood market. Pedigree is also driving growth within the premium pouch and snacks and treats segments,

ket represents 30% of dog owning households and is rapidly growing (Source: ACNielsen February 18, 2007). Available in pouch and tray format, the Cesar range offers high impact packaging, excellent quality recipe and convenience to the consumer.

Nestlé Purina Petcare has been key in driving the premium and super premium categories within the pet food sector in recent years.

according to Mars Ireland. Their range includes DentaStix, which they maintain is the fastest growing functional treat, catering for the daily dental care needs of all size dogs. According to Mars Ireland, Whiskas leads the cat care sector with quality products across the dry complete, pouch, can, snacks and treats categories, in addition to a strong kitten range. Whiskas recently launched a premium pouch range Whiskas Oh So… which contains whole chunks of meat and fish. With owners increasingly looking for natural and authentic foods for both themselves and their pets, Whiskas Oh so… delivers the ultimate cat enjoyment with the finest ingredients. Cesar, the premium food for small dogs, allows consumers to indulge their pets whilst ensuring a nutritious meal. The small dog mar80

Nestlé According to Nestlé, their range of Nestlé Purina Petcare has been key in driving the premium and super premium categories within the pet food sector in recent years through a combination of factors, including high quality new product development and consumer education. The company’s core value of being “passionately committed to making pets’ lives better” ensures that all products are of the highest quality, with advanced nutritional benefits. 2006 saw the emergence of a brand new super premium dry category with the launch of Purina One, which currently claims a 6% share of

the total dry cat market (Source: ACNielsen 4 w/e Apr 22/07). This is a new category encompassing superior, nutritionally complete dry products with added health benefits for the cat. Purina One has an extensive marketing plan in place for summer 2007, including press, sampling and in-store activities. The cat food market has witnessed a consumer trend of trading up to higher added value segments such as premium single serve. This is most evident within Purina’s Gourmet brand, which, with a claimed 6.8% share is the number one brand in this segment following a direct mail and radio campaign, coupled with its first ever TV ad (Source: ACNielsen 4 w/e Apr 22/07). Felix is another brand which is crucial to this category, with the continued performance of “Felix As Good As It Looks” and the recent launch of Felix Roasted, a Purina patented technology, contributing to category growth. This trend of trading up is also evident within the Irish dog food market, with increased sales in multipack cans and more consumers choosing to purchase complete dry food. To facilitate this ever changing market, Purina have some exciting new product launches for 2007 with Winalot Irish Favourites cans and a new range of Bakers Treats arriving in the summer. Bakers Complete is also extending its range to include weight control, small dog and senior products.

Irish consumers are willing to trade up to premium and

super-premium brands for their pets, particularly those with functional

qualities and perceived

health benefits for their four-legged friends.


RN June07Male Grooming ●

Male Force The emergence of the new ‘ubersexual’ man brings massive profit potential in the male grooming sector. L’Oreal Men Expert, a range of men’s skincare tailored to every man’s particular skin needs.

Euromonitor International have documented the latest development in male shopping patterns as the emergence of the ‘ubersexual’ man, which they claim presents a potential goldmine for global manufacturers and marketers. Cosmetics companies, health clubs, retailers and travel companies are set to be the big winners, as men become more image-conscious than ever before. Indeed, the ubersexual man is defined by Euromonitor International as ‘more complex, more thoughtful, more culinary and better groomed than macho man, but more traditionally masculine than the metrosexual’. They are, therefore, more likely to prepare and research meals, buy cosmetics and toiletries, and join health clubs. When it comes to grooming, this new man is taken with shaving and hair-care products, and is also conscious of skin-care, and is willing to spend his hard-earned cash on moisturising lotions and even face masks. Indeed, according to Euromonitor, the cosmetics and toiletries industry is already benefiting from the increased focus on male grooming products, as more products enter the market and men become more willing 82

to buy their own toiletries. Sales are predicted to grow even further, by 18% globally between 2006 and 2011, when the market is forecast to be worth US$25 billion. The trend of the ‘ubersexual’ man has emerged as the result of a number of developments identified by Euromonitor International. Traditional gender roles are eroding, as more women take the position of the head of household. The macho male image is also diminishing as more men not only adopt more traditionally feminine skills but also aspire to have what some consider a more feminine lifestyle. As such, it is becoming increasingly acceptable for men to express themselves through fashion and cosmetics. ”Increasingly sophisticated products, traditionally catering to women, are now being marketed to men,” notes Don Hedley, Consumer Analyst from Euromonitor International. “In the cosmetics industry, for example, traditional male products such as shaving foam, hair gel, razors and deodorants are now being complemented with antiwrinkle creams, bronzing products and toning gels. This represents a phenomenal opportunity for all manufacturers to cash in on.”

L’Oreal Men Expert It may be a new thing, but it’s here to stay: men are now waking up to the importance of their appearance and their image. To effectively respond to the expectations of men who want to take care of themselves, L’Oreal Paris

Niall Woods, CEO IRUPA, and model Ruth O’Neill join Irish international rugby star Marcus Horan to celebrate the announcement that L’Oreal Men Expert is the official men’s skincare to the Irish Rugby Union Players’ Association (IRUPA).


RN June07Male Grooming ●

have developed a unique approach to men’s skincare; understanding how a man’s skin develops at each stage of his life. With this unique understanding and an exclusive range of products, L’Oreal Paris channels its skincare expertise into Men Expert, a range of men’s skincare tailored to every man’s particular skin needs. The brand became the Official Men’s Skincare to the Irish Rugby Union Players’ Association this year, proving that even the toughest guys need to take care of their skin. L’Oreal Men Expert is supported with heavyweight TV and press support plus online advertising, PR and sampling.

Nivea For Men There has been a significant shift in men’s purchasing behaviour over the last ten years. It is now not only acceptable to buy male grooming products, but men are now demanding more innovation and seeking out new grooming solutions. Nivea For Men, which claims to be Ireland’s number one male skincare brand, in answer to these demands, have introduced some exciting new innovations: Nivea For Men

The launch of Lynx Vice is backed by a major media campaign and an online site, www.lynxvice.com, where consumers can log on and assist in solving crime sprees to win some fantastic prizes.

Summer Look Moisturiser, Revitalising Eye Relief Q10 and Body Lotion. Nivea For Men have developed Summer Look Moisturiser (RRP €9.99), a no mess, non-streak, slowdeveloping way to achieve tanned good looks - the simple way. No overnight sensations which reveal too much, too little or odd streaks, this is a daily use product that builds up gradually – it means a guy can check the development and adjust his credentials accordingly. Nivea For Men Revitalising Eye Relief Q10 (RRP €9.99) is quickly absorbed and revitalises tired eyes, reducing dark circles, puffiness and fine lines. It also helps to protect the skin against the ageing effects of the environment, including sun, wind and central heating. Nivea For Men Moisturising Body Lotion (RRP €4.89) is the first body care product from Nivea made specially for men, giving an instant boost of moisture that lasts all day long.

in solving crime sprees to win some fantastic prizes including Sony PlayStations. The Vice fragrance is available in bodyspray, anti-perspirant deodorant, roll- on and shower Lynx have also added to their shower portfolio with the launch of Shock containing glacier water and deep sea enriched mint, for a cool, fresh feel that really revives.

Lynx

Nivea For Men Summer Look Moisturiser (RRP €9.99): a no mess, non-streak, slow-developing way to achieve tanned good looks - the simple way.

84

Lynx Vice, the latest fragrance from Lynx, the brand that produces the very powerful ‘Lynx Effect’ is turning nice girls naughty across the country. According to the company, certain forbidden ingredients used in Lynx Vice act as a powerful aphrodisiac, fuelling intense, uncontrollable reactions among women. The launch of Lynx Vice is backed by a major media campaign and an online site, www.lynxvice.com, where consumers can log on and assist

Lynx have added to their shower portfolio with the launch of Shock, containing glacier water and deep sea enriched mint.


Merit Solutions specialise in truly understanding retailer needs and with continuous investment in research and development, it follows that our solutions really do increase margins and make retailing easier. Features include; • Advanced Touchscreen POS • Electronic Wholesaler Purchasing • Cigarette Machine Integration • Extensive Monitoring and Reporting • Integrated Forecourt Solution • Security Cameras Communications • Car Wash Integration • Integrated Chip and Pin • Margin Management • Staff Monitoring and Clock Card • Radio-linked (Wi-Fi) Handhelds • Integrated Mobile Top -Up • Stock Management • Financial Control • Weighing Scales Connectivity

: Increased Retail Margins :: Flexible Solutions ::: Reliable and Easy to Use

Tel: 091-738 000 Email: sales@meritsolutions.ie Web: www.meritsolutions.ie


RN June07EPoS ●

EPoSsibilities Do you find developments in Electronic Point of Sale technology confusing? Well, worry no more, as RETAIL NEWS guides you through the latest advances in EPoS.

EPoS

(Electronic Point of Sale) in its most basic form is a system whereby every sale you make in your store is logged on the store computer, which then relays the price of the item back to the till. The customer can then receive an itemised receipt, while the retailer can keep tabs on stock levels. So, EPoS can enable efficient stock control and re-ordering, as well as providing information about stock ratios, turnover, sales information and profitability. The benefits of EPoS are manifold and include: • Detailed sales information at your fingertips, allowing you to more accurately predict demand and reduce the amount of stock taking up space in your storeroom.

effect on retailing, particularly in rela• EPoS can be integrated with your tion to EPoS. RFID tags can store far stock control system, allowing for more than simple product informaaccurate, real-time stock control, tion. However, the widespread adopwhich can then allow the user to tion of RFID is still some years away, improve supply chain efficiency. but in the meantime, a new bar-code • EPoS can be linked to other backis set to launch on January 1, 2010. office systems, including accounts The GS1 DataBar has two distinct software packages, which can give you added control and allow you to increase profitability. • Your EPoS system can also be integrated with those of your suppliers and with data from handheld scanners, thus providing more accurate information on sales and purchasing data, as well as the ability to track products throughout the supply chain. When used properly, an efficient EPoS system can be an important tool in controlling your stock levels and analysing sales patterns in your store. It also has knock-on benefits for suppliers, when integrated with their systems, allowing both parties to access accurate sales data and thus to predict future sales patterns and amend ordering systems accordingly. Emerging trends, such as the The advent of RFID, will have a massive advent of RFID (Radio Frequency effect on retailing, particularly in relation to EPoS. Identification), will have a massive 87


RN June07EPoS ●

advantages over the standard EAN & UPC codes in use in the grocery sector today. Firstly, they can be used to put bar code symbols on small and hardto-mark products, such as fresh fruit and vegetables. Secondly, a lot more information than just the product’s identification (bar code) number can be encoded in the same amount of space that a standard EAN/UPC bar code symbol uses today. For the first time, key product information such as batch number, expiry date or serial number will be available in bar code format at the retail point of sale. This will be a significant breakthrough for both retailers and suppliers alike, enabling the more efficient and timely management of traceability systems, inventory management and the handling of promotions and coupons in particular.

(DeliPOS), which will greatly improve margin and stock control at your sandwich and hot food counter. It has a uniquely easy-to-use interface, allowing staff to record the individual items of a custommade sandwich or dinner. The system then prints a label containing the individual items, which is then scanned at the payment counter. It will also speeds up the service at the deli as it is easy to create a custom order with the flexible touch screen layout, which can also include clear pictures of each individual item.

makes up 10% of their turnover, it takes up 30% of their time,” Blackburn notes. “After installing the system on over 100 sites throughout Ireland, our customers

Torex Retail

Torex Retail, one of Ireland’s and indeed Europe’s largest EPoS Merit Solutions provides retail soluSales Manager, Mike Blackburn is pictured with the suppliers, is currently tions that make retailing easier and company’s specialist CTN EPoS system, designed by running a promotion on more profitable. Earlier this year, they newsagents for newsagents. its specialist CTN EPoS launched the latest version of their have been very positive about the system, designed by newsagents for fully integrated fuel solution (pictured results. They feel they’ve reduced the newsagents. It’s completely unique in below) which has all the features that amount of time spent on news conthat it has all the modern day funca successful forecourt needs, includsiderably and that they never miss tionality of a high spec EPoS but has ing: drive-off protection, car wash returns now.” Ireland’s only integrated publications integration, security camera integraTorex Retail offers a complete management system. tion, cigarette vending, mobile top up, retail solution, from basic cash regMike Blackburn, Sales Manager chip and pin and fuel promotions. All isters to high-end touch screen of Torex Retail, explains, “News can the forecourt equipment can be reliEPoS systems, as well as scanners, be a highly profitable area of any ably controlled and monitored from an Chip & PIN solutions, plus highly store owner’s business if managed easy-to-use touch interface. innovative back-office management correctly. For example, the average Merit Solutions will also soon be systems. magazine retails for €4 and gives launching a Deli Point of Service The CSNA and the NFRN now the store owner a exclusively recommend only one sys25% profit margin, tem; that of Torex Retail. Vincent which equates to Jennings, CEO of the CSNA, notes, €1 per sale. After “The CSNA realise how important talking to retailers improving efficiency can be in maxthroughout imising profits. We are delighted that Ireland, we a company as renowned as Torex realised that what have identified this retailer need in they required was developing the CTN system. We are a system to help most impressed by the company and maximize and proits products and are happy to be astect this profit.” sociated with them.” One of the main Martin Mulligan, President of the problems with the NFRN, added “CTN’s robust funcnewsagency intionality, easy to use design, accessistore, however, is Merit Solutions’ fully integrated fuel solution has all the bility and unrivalled ability to hanthat of time versus features that a successful forecourt needs, including: drive- profit. “Irish dle the news has secured the system off protection, car wash integration, security camera as the number one choice for newsagents told us integration, cigarette vending, mobile top up, newsagents.” that although news chip and pin and fuel promotions.

Merit Solutions

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RN June07EPoS ●

Toshiba TEC Europe As a total solution provider, Toshiba TEC Europe offers a complete package from consulting and system design to system installation, operation and maintenance of PoS systems, cash registers, barcode printers, peripherals and software information systems. The company have recently launched the new TRST-A10 and TRST-A15 thermal PoS Printers in Europe, promising that these innovative models will deliver a competitive advantage to retail, convenience, and the hospitality markets. Both models are single station thermal receipt printers which share a common platform of unrivalled reliability, easy maintenance and wide usability for both high-volume and specialty sales, as well as transit handling of warehoused goods. The new TRST-A10 and TRSTA15 thermal printers produce high quality text, razor-sharp graphics and barcodes at top speed. Through their multi-colour printing capability, both printers easily deliver intelligent sales information, to meet each individual client’s requirements. The TRST-A10 and TRST-A15 printers are stacked with value adding features, such as easy drop-in paper roll loading (saving time during roll changes), auto-cutter (dust reduction increases overall printer reliability), USB and serial interfaces, as well as free OPOS and Windows drivers to help save time and money. At 225 mm/sec, the TRST-A10 single sided thermal printer delivers a fast and smooth print-out. Its clearcut design without sharp edges protects users from injuries. All modular components are designed to give maximum accessibility for replenishment and jam clearance. Components can be cleaned, maintained and swapped without the need for any special tools. The TRST-A15 is of the same stock but with super-fast double sided printing capabilities at an astonishing 170 mm/sec. Simultaneous printing on both sides of the receipt using the TRSTA15 printer reduces paper cost by up to 25% - a significant saving to the user, while the number of roll changes is only half that of similar single-

sided printers. The two-sided printing option can be activated through a single command, avoiding the need for expensive software development. Content information on the receipts can be tailored to each individual customer’s requirements, such as rebate information, contest information or even serialised cartoons. The new printers benefit from low power consumption and offer extreme reliability with a Mean Characters Before Failure of 52 million lines and a Mean Time Before Failure of the PC board by a recordbreaking 600,000 hours. The unique cover release system on the TRST-A10 protects the top cover from breaking. When the printer cover is ripped off through heavyhanded use, the user can, within seconds, manually click the cover in place again. Using two print heads in the double-sided TRST-A15 means that each print head prints half the total number of lines. Each print head therefore doubles its lifetime compared to a standard receipt printer, drastically decreasing the environmental impact of receipt printing. Standard USB and serial interfaces connect the new PoS printers to each legacy system, as well as keeping all options open for future hardware upgrades. Choosing between normal and low

The new TRST-A15 thermal PoS Printer from Toshiba produces high quality text, razor-sharp graphics and barcodes at top speed, with doublesided printing capabilities

power mode gives users the ability to choose between speed and energy costs. The double-sided print head concept sets down a new standard with an extended product lifetime and hence a smaller environmental footprint as production, transportation and eventually recycling costs are significantly reduced.

IT PROVIDERS IT Providers, an Ennis-based developer of retail solutions, is set to shake up the Irish retail solutions market with an innovative low-cost offering to retailers. They plan to adopt the ‘Software as a Service’ model (SaaS) to deliver their POSition, POS and MobileData solutions. In effect, this will mean that retailers choosing this solution will benefit from an extremely low upfront implementation cost and ongoing service level support. Commenting on the strategy, IT Providers owner, Niall Cannon said, “This service will be dependent on broadband. We are currently finalising our pricing model. We plan to launch the service at the Shop Exhibition in the RDS.” Depending on the pricing model, IT Providers settles on this delivery strategy and has the potential to offer retailers a low cost gateway to implementing leading edge Point of Sale solutions. IT Providers currently lists Musgrave SuperValu Centra, Joyces Supermarkets and Shoes For Kids stores among their client base.

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ePOS Software, Stock Control and Mobile Applications "We were very impressed with the retail track record of IT Providers & the personnel we met. The software has been of the highest standard and delivered within agreed timescales" Mr Tony Griffin, Retail Head of IT, MSVC.

IT Providers Ltd Unit 4, Carmody Street Business Park, Ennis, Co. Clare Tel: 065 686 8880

ORGANIC HARVEST 2007 Organic Harvest Fresh Soups have a range of eight soups,which have proved extremely popular with Irish consumers. “From a standing start, Organic Harvest soups have taken 20% of the fresh soup market in Ireland in less than two years,” says Pat McGrath, Managing Director, Organic Harvest Soups. The total soup market in Ireland is worth over €61m. In Ireland, soup has a 95% household penetration. The fresh soup sector now represents 23% of the total soup market, at €14m, and has grown by 8% year-on-year for the last four years in a row. The Organic Harvest fresh soup range is both fresh and healthy. None of their products contain preservatives, additives, colourings, chemicals, flavorings or any GMO ingredients, and they are also dairy free. Organic Harvest soups are made in Tralee Co.Kerry and are 100% natural and are freshly made on a daily basis with only the best organic ingredients. “We find the majority of our consumers are: Mothers with Children, 35-44; Young Working Females, 25-34; ‘Foodies’ (food connoisseurs) or environmentalists,” notes Pat McGrath. “Our reasonable price point of €2.49 per 500g soup pot has also been a very important factor in our success to date. Currently consumers will pay the same price as the major non-organic competitors.” The Organic Harvest soup range includes eight varieties: Vegetable; Cauliflower, Cheese & Broccoli; Potato & Leek; Red Pepper & Tomato; Tomato & Basil; Spicy Vegetable; Carrot & Coriander; Spinach & Lentil. All are available in 500g convenient microwaveable pots. All Organic Harvest soups have a 35-day shelf-life and are available nationwide through SHS Distribution - 01 457 7580 or by e-mailing info@organicharvest.ie


RN June07In-Store Services ●

Gaining a Competitive Edge In today’s ultracompetitive climate, offering a range of in-store services can give your store the edge when it comes to attracting footfall through your doors. The range of in-store services on offer is increasing year-by-year.

The

local shop has transformed over the past decade. The statement has been made many times but that does not make it any less valid. Not only has the look of the local shop changed and the standards to which they operate increased, but the services they provide have broadened year by year. RETAIL NEWS has watched and commented upon the developments in the sector spoke to owners of local shops and forecourts from around the country to find out what sort of services they offer and how popular they prove.

ATM: ATMs are increasingly common sights in local shops, and their main benefit is that they will almost definitely increase footfall in the shop. They are most successful in locations which are poorly serviced by banks and post offices, or in densely populated urban areas.

Tom Liddy, Gala Group, tells RETAIL NEWS: “Customers don’t ask if we have an ATM these days, they ask where is the ATM. I wouldn’t dream of opening a local shop without an ATM.”

Billpay: Billpay is another great service for increasing footfall. Like the ATM, it is best offered in urban areas with a high population or areas poorly serviced by

Making your ATM work for you FROM ‘hole in the wall’ to ‘must have’ business accessory, the ATM has become a new – and profitable – way of doing business for retailers. For locations that have adequate footfall and turnover, a merchant-replenished ATM can also reduce the cash lodgement fees that retailers pay. For many retailers, this amounts to a compelling business case. Another plus, in these security-conscious days, is that cardholders see the store as a relatively safe environment in which to make a cash withdrawal. For retailers, of course, security is a major concern and it is vital that each store takes independent advice on its security arrangements. “As the ATM celebrates its 40th birthday, the feedback from our business customers who have installed the merchant-replenished ATM is that the cash turnover of their stores is directly affected by the availability of cash in the ATM,” notes Donal Clavin, ATM Business Management, AIB Bank. “After all, the reason a cardholder withdraws money is to spend it. Why not in your store rather than your competitor’s?” 91


RN June07In-Store Services ●

Network Video THE DVD market has recorded impressive growth in recent years, and with top titles now retailing at sensible price points, DVD makes sense for the convenience retailer today more than ever. There is a shift taking place in the market at present, with grocery/general retailers gaining market share at the expense of specialist ‘home entertainment’ retailers. Network Video provides a comprehensive service-based offering, that enables convenience retailers to take advantage of the changes in the DVD market. An attractive and compact (60cm wide) display stand is supplied, along with a range of PoS materials. A range of top titles is supplied on a sale or exchange basis, and new titles are introduced regularly. Rental packages are proven performers in Ireland, and retailers in suitable locations can reap the benefits of additional footfall, significant spin-off sales and increased customer loyalty. New releases are the lifeblood of any DVD rental business, and Network Video ensures that you get your own choice of top new release titles, delivered for the national release date. A regular exchange of catalogue titles helps keep the customers who are heavy renters satisfied. banks and post offices. Alan Jordan, Centra Group, explains, “Billpay can really help footfall in a shop. It’s all about introducing as many aspects to your business as possible to create as many reasons as you can for people to choose your shop.”

Book Sales: Books sell particularly well during the on-season in popular tourist destinations. Offering a small selection of bestsellers can provide a healthy margin through impulse sales.

However, a car care offering can be a profitable addition to the shop.

CD & DVD Sales/Rental: Impulse purchase is the name of the game here again. Sales of CDs and DVDs offer very healthy margins, and perform very well in areas poorly serviced by video libraries, while DVD rental services are growing in popularity, especially in areas with a large concentration of holiday homes.

Food-to-Go: Food-to-go is on offer from top quality delis in almost every local shop and forecourt in the country and among the most basic expectations of customers. Not so much an added service but a prerequisite for success, failure to present a deli full of tasty treats can send customers away with little chance of seeing them again.

Hardware & Homeware:

This is not a particularly common service but one that can prove popular with customers. Beatie Meehan, ADM Londis, tells RETAIL NEWS, “We take delivery from customers and send it off to be dry cleaned at a dedicated dry cleaners. Customers find it convenient to be able to pick up their cleaned items while shopping, rather than having to make a second trip to the local dry cleaner.”

Space permitting, offering a small selection of brown and white goods, or hardware products can produce strong sales and great margins. Barry McCarthy, Manager, Harte’s EuroSPAR, Clonakilty, Co. Cork, says, “It’s about offering a full service to customers. Competitors like Dunnes and Tesco, Lidl and Aldi are found all over the place now, even in smaller towns, and people expect to be able to get more than just groceries on a single shopping trip.”

Car Care & Accessories:

Flowers:

Home Delivery:

Car care products have become harder to find in the forecourts of modern Ireland as they target food-to-go.

Flowers are particularly strong sellers on seasonal holidays, eg, Christmas, Mother’s Day, St Valentine’s Day.

While it may end up being an additional cost, the offer of a home delivery generates tremendous goodwill among

Dry Cleaning: BBQ Fuel & Accessories: These may be another seasonal seller but with the popularity of BBQs among modern Irish consumers, they account for strong sales in the months when we can see the sun, and the increasing number of Irish consumers who barbeque year-round makes this a growing category.

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RN June07In-Store Services ●

Must Haves: ATM Food to Go Lotto Etc Mobile Phone Top-ups Tea & Coffee

Seasonal Successes: Books BBQ accessories Flowers Ice Cream Cones

The Extra Mile: Bill Pay Car Care CDs & DVDs Dry Cleaning Service Extra Food Franchise Free Home Delivery Hardware & Homeware Juice Bar Pet Supplies & Treats Photo Development Plants

customers and can keep them loyal in an extremely competitive market.

Ice Cream Cones: Another seasonal success, fresh icecream cones are a delicious treat for the summer months.

Juice Bar: As Irish consumers become ever more health conscious, fresh and healthy juices and smoothies are becoming ever more popular choice for breakfast or lunch and juice bars are already proving valuable additions to delis around the country.

Lotto, Euro Lotto, Scratch Cards: These guarantee increased footfall all week long.

Mobile Phone Top Ups: These are as popular as delis in the modern local shop and are selling strongly in almost every part of the country.

Pet Supplies: Irish people love their pets and treats and toys for animals can produce as many impulse purchases as treats for the customers themselves. Trevor Hegarty, Costcutter, notes, “Footfall is everything. It’s all about getting people in through the door and you’re always looking for something new, for something to give you the edge.”

Photo Kiosk & Development: With the strong sales of digital cameras in Ireland, as well as the advent of camera phones, photo developing can now be done from a kiosk the size of an ATM.

Plants: An expansion on the notion of selling flowers, a selection of plants can sell year round in the right location, space permitting, particularly in spring.

Sit Down Eating Area: Another service that is best provided only if space permits, a sit down area provides a pleasant experience for

The National Lottery continually launch new games and scratch cards, helping to increase consumer interest. 94

Selling paperback books in your store can be a real bonus, particularly during holiday season.

shoppers and of course while lingering, they may just make another purchase.

Supermac’s & Food Franchises: Rather than competing with the deli, a food franchise offering such as Supermac’s can complement the rest of the shop’s food-to-go elements and provide locals with yet another reason to chose your shop over any other. James Hanlon, Manager, Bradys SPAR, Mulhuddart, says, “Extra services and facilities need to be customer-led. If people come looking for a facility you lack, they will simply go elsewhere. You need to know your customers’ needs and wants and move to meet them to stay successful in this business.” Introducing extra facilities and services is the best way to differentiate your shop. When doing so, make sure you are aware of what services are offered in your areas and always move first to meet demands that are poorly provided for.


RN June07In-Store Services ●

The 3V Revolution Kieron Guilfoyle, CEO, 3V Transaction Services Ltd, on the benefits of the 3V voucher for retailers and consumers.

3V

Transaction Services Ltd provide a range of innovative prepaid debit products, primarily for use in online payment transactions. It was launched to target the unserviced €500 billion European prepaid card market. Following its Irish launch in October 2005, 3V Vouchers has launched in the UK and will be rolling out in Germany, Holland and Spain later in 2007. The 3V Voucher enables everyone over the age of 16 to shop online, wherever VISA is accepted worldwide – without using either a credit or debit card. Simple to buy – just like purchasing mobile phone top up – the 3V Voucher gives all the benefits of a bank card without the fear of fraud or going into the red (www.3v.ie).

Online Shoppers “With over 96,000 customers registered in Ireland, our research demonstrates that Irish consumers view 3V vouchers as both a complementary and competitive product to the traditional credit card,” Kieron Guilfoyle, CEO of 3V Transaction Service Ltd explains. “Our latest market research details that 62% of those surveyed

Kieron Guilfoyle, CEO of 3V Transaction Service Ltd.

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indicated that they shop online at least once a month. While a further breakdown detailed that 43% shop online every month, 17% shop online every week and 2% shop online every day,” Kieron notes.

Consumer Benefits

The 3V Voucher enables everyone over the age of 16

The most compelling reato shop online, wherever VISA is accepted worldwide sons for using the service – without using either a credit or debit card. are generally that the vouchers are easy to use, or as an Retailer Benefits alternative to getting a credit card, “Retailers benefit in a number of according to Kieron: “The most signifiways,” Kieron boasts. “Similar to the cant driver for registration was the process for mobile phone top-ups, Irish online shopper’s increased retailers receive a commission for demand for security during online each sale. There is also the benefit of transactions.” increased footfall as a result of the 3V With the introduction of Chip & service in-store. PIN technology on the high street, “Our market research indicates fraudsters are increasingly focusing that 3V is regarded as a destination on the Internet through Card Not product, retailers benefit from 3V cusPresent (CNP) fraud. Retailers who tomers entering their outlets specifiprocess transactions online are leavcally to purchase 3V Vouchers. These ing themselves open to charge-backs customers are often directed to outlets being made against them by the genby the 3V website and as such are uine owners of stolen cards, or regarded as ‘new’ customers for the unscrupulous cardholders, as they retailer.” cannot verify the cardholder’s identity 3V has a PoS presence in each at the point of sale. According to the store, which has recently been redeATM Industry Association, CNP veloped with the launch of the new Fraud increased by over 21% across product creative in Ireland. “However, Europe during 2006. with the 3V brand firmly established 3V Voucher transactions have a in the Irish market, combined with double security verification process the national awareness of payzone because security details (the 3 digit services, there is not a significant code and expiry date) are transmitted requirement for increased PoS,” notes separately to the customer and the 16 Kieron. “Our challenge is to continue digit Visa number on their voucher. to educate the consumer about 3V Users can elect how they want their vouchers and their availability outsecurity details delivered – by SMS, side of the retail sphere.” email or by calling customer service. 3V Vouchers are available through This security capability by 3V is a key the Alphyra (payzone) network, which has 150,000 terminal sites throughout offering for both fearful consumers Europe (www.alphyra.com). and online retailers.


RN June07Canned Food ●

21st Century Can The Irish canned food market continues to show consistent annual growth, tapping into consumer desire for convenience and health.

Even

though it’s probably considered one of the most mature sectors in the entire grocery spectrum, the canned food market is still showing consistent growth. Indeed, the Irish canned food market showed annual average growth of 1.7% between 2000 and 2005. The canned food market covers practically every area of grocery, from vegetables to meat, pasta to fruit and desserts. Arguably the fastest growing area of the entire canned foods spectrum is that of soups, with more and more consumers trading up to premium varieties. Of course, canned food remains one of the most convenient sectors in the store for consumers, thanks to its long shelf-life.

In Ireland, perhaps the most famous of Heinz tinned products is Heinz Baked Beans, which are available in three sizes, plus a Reduced Sugar and Salt variety, each with easyopen ring pull. Heinz Cream of Tomato Soup is unquestionably the most popular in the range of convenient Heinz Ready to Serve Soups. Heinz also offers the popular range of tinned Weight Watchers from Heinz Soups. This product comes in a convenient one serving 295g tin, with each variety clearly indicating its Weight Watchers Points Value. The Weight Watchers From Heinz tinned range also includes Baked Beans, Pasta Meals and Spaghetti. Heinz is continuously expanding and updating its range of tinned spaghetti products in response to childrens’ ever-changing tastes. Heinz tinned Spaghetti claims brand leadership, with Heinz Spaghetti and Heinz Spaghetti Hoops being the best sellers in the range. Heinz Alphabetti Spaghetti is also an important part of the Heinz range, available in both a 205g and 400g size, and has further established Heinz as the undisputed

Heinz Cream of Tomato Soup, extremely popular with Irish consumers.

brand leader in tinned spaghetti, according to the company. Heinz Spaghetti Shapes are also an important sector of the market, with shapes favourites such as Winnie the Pooh proving very popular with younger children.

HJ Heinz HJ Heinz boasts a vast range of canned foods, from the iconic Heinz Baked Beans to Heinz Ready to Serve Soups, Heinz Spaghetti, Heinz Sponge Puddings and the Weight Watchers from Heinz range. As one of the world’s largest producers of tinned foods, the Heinz brand is synonomous with quality and taste among consumers worldwide. 98

Heinz Baked Beans, available in three sizes, plus a reduced sugar and salt variety.

Heinz Spaghetti Hoops, a massively important part of the Heinz range.


RN June07Canned Food â—?

Batchelors Batchelors claims to be Ireland’s leading brand in canned Baked Beans, Peas and Pulses. Consumers now recognise the need to eat more veg and fruit as part of the five-a-day message. The health benefits are now well understood by people looking to reduce heart decease and cancer. All vegetables, from canned to fresh or frozen, are part of the five-a-day message from the Department of Health. A Batchelors 225g can of vegetables accounts for nearly 3 of the recommended five-a-day. The ever-popular Batchelors Beans claim market leadersip with a 62%

Recent reports point to the need for greater intake of Omega 3 fish oils among the Irish adult and child population. Fish such as Picnic salmon, mackerel, herring and sardines are naturally rich in Omega 3. Tuna is the fastest growing product in the category and is a popular choice for Picnic is a key player in the canned fish market with an extensive range of variants. slimmers and people seeking a high mackerel, herring fillets and red and pink salmon.

Lustre

Batchelors Heartwise Baked Beans have 20% less Salt and 20% less Sugar, in addition to 20% Omega 3 and 20% vitamins A & E of the RDA.

share. Batchelors has a wide range of cans from single portion to family size. It has recently launched Heartwise Baked Beans. Batchelors Heartwise has 20% less Salt and 20% less Sugar, in addition to 20% Omega 3 and 20% vitamins A & E of the RDA. Batchelors Heartwise is available in 420g (family) and 225g (single serve) sizes. Category Management tools for retailers are available at www.batchelors.ie.

Picnic Picnic is a brand synonymous with quality at an everyday price. Picnic is a key player in the canned fish market with an extensive range of variants.

level of protein in their diet. Tuna chunks and tuna steaks are available in both oil and brine. One of Picnic’s most popular products is a triple pack 80g tuna in oil or brine with a convenient ring pull. These small cans are convenient sandwich fillers or ideal as salad accompaniment for one-person meals. Also available in the Picnic range of canned fish are sardines,

Lustre claims leadership of the Irish canned fruit market. Lustre is a quality canned fruit and has an extensive range of fruit in syrup and in natural juice. The fruit in syrup range includes fruit cocktail, peaches, pears and pineapple slices in 410g. Grapefruit segments, together with the other fruits, are also available in 3kg catering sizes. Lustre in natural juice is a range which is becoming increasingly popular with people looking for a healthier alternative. The natural juice range is available in fruit cocktail, peaches, pears, mandarin orange and pineapple slices 410g. In the vegetables range, sweet corn and canned & tetra recart tomatoes are also popular products available under the Lustre Brand.

Lustre has an extensive range of fruit in syrup and in natural juice.

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RN June07Forecourt Focus ●

Reaping the Rewards of a Revamp Tommy Naughton’s revamped and extended Londis forecourt in Athlone has been performing extremely well since opening its doors early this year.

Tommy

Naughton’s site on the N4 was, until this year, a large forecourt with a big garage for vehicle service and repair. However, the on-site shop was rather small and only offered minimal stock selection. Now, however, following an extensive expansion plan, Tommy’s Londis store has 1,300 square feet of retail space and offers a broad grocery offering, a fact which has already been much welcomed and appreciated by his growing customer base. For Tommy, the idea to expand and develop the site came from close family members who suggested it could be a good idea. The notion appealed to Tommy, who knew just how busy the section of road where the garage is situated had become. As the store owner looked into making the idea a reality, he investigated various symbol groups, knowing that a strong retail partner would make the venture a lot easier for him. Londis has a strong presence in the area around Athlone, which he noticed while travelling around, checking out the various symbol group forecourt shops in the locality.

Pictured are (l-r): Tommy Naughton, store owner; Tony O’Sullivan, ADM Londis Regional Manager; and Kathleen Naughton. 100

Tommy immediately recognised the quality of the Londis image, while he already knew Tony O’Sullivan, the local Londis Regional Manager. “There were a number of reasons for going with Londis,” Tommy explains. “Having looked at a variety of shops, I found I really liked the Londis look. It gave me confidence to see a group who were forward in their thinking and instore design. To me, the look and feel of the new store was an integral element in the entire process. It was a big step to take, but one which was made a lot easier by being part of a well renowned group.”


RN June07Forecourt Focus ●

Designing the New Store In July of last year, construction work began in earnest, first with the demolition of the old shop and then the erection of the new building. The Londis team helped immensely with the design of the interior of the shop. “I was coming from running a tiny shop that didn’t even sell pre-packed sandwiches, let alone have a deli,” Tommy admits. “I would have been completely out of my depth trying to design the interior of the shop if I had been left to my own devices and would have had no choice but to hire a consultant. Working with Londis meant I had a team of consultants at my disposal. The Londis project manager, Patrick Stanley, was a great help in designing and managing the whole revamp process.” The shop opened for business early this year and it was a steep learning curve. According to Tommy, “the deli was probably the most frightening prospect, but following specialist deli, hot food and HACCP training, and getting to grips with the various deli procedures, we are coping very well with the change.”

Impressive Sales Returns The figures speak for themselves in the intervening months, with sales well ahead of predictions. “Petrol is really the only part of the business that can be directly compared before and after the development, and figures doubled right away,” Tommy boasts. “Wine sales have started well and the deli is growing in popularity as regular passers-by realise that we now have one. I really couldn’t be happier with how working with Londis has turned out.” Tommy joined Londis at a very opportune moment. His investment in the latest Londis image has transformed a cramped forecourt shop into a spacious modern shopping environment. The results have impressed his symbol group partners too, as Tony O’Sullivan, Londis Regional Manager explains: “We are absolutely delighted with the way Tommy’s shop has turned out. The new look deli has been developed by Londis in very close partnership with our suppliers, and it sets a new standard of quality for our deli operations. “The updated wood finish shelving units are also part of the new image and the revamped signage, denoting sales destinations, is another central part of the fresh Londis look.”

Tremendous Success The Regional Manager emphasises that Londis wanted to match Tommy’s 100% commitment to the development: “Everyone concerned has succeeded in making this project a tremendous success. Tommy is managing the new change very well and very quickly - he is exactly the type of hard-

working retailer that makes this such a highly competitive sector and is as much an asset to us as we are to him.” Alongside the development of the new Londis image, the group are also developing an additional business model for members, to assist them in developing strong local advertising strategies, through local media and self-promotion activities. “It’s all part of our continuing dedication to the members of our group,” notes Tony, “as well as developing our brand by raising the quality of the complete package we offer to dedicated, determined retailers like Tommy.” Although Tommy’s shop is understandably very focused on high-end convenience, it is large enough to accommodate a comprehensive stock selection. Londis provide a good range of KVI stock promotions on a cycle, as well as a variety of non-food loyalty promotions, such as their current Alaska Pine Unit and their recently renewed ‘Take a Little Time’ weekend breaks promotion. Tommy recognises it is important to have promotions running in-store, like his current offer, which sees his customers get a free bottle of wine with every €25 spent in-store. The new business model is FA C T F I L E obviously working, as regular passing Owner: Tommy Naughton commuters and Location: N4, Ballydangan, Athlone local residents are already Size: 1,300 square feet finding the conNumber of venience of Staff: 9 full time & part time ample parking Opening 07:00-22:00, Monday-Friday; and short queues at hours: 07:30-21:00, Saturday; the till attractive. 08:00-21:00, Sunday. 101


RN June07What’s New ●

Shaws Carvery Meats SHAWS are launching a new range of Carvery Meats that will further drive their premium values. The Shaws brand, from its origins in Limerick over 170 years ago, continues to deliver care and craft in its range of fine foods. The new range of Carvery Sliced Cooked Meats are available in four delicious varieties, selected from prime, natural cuts, to deliver traditional succulence; chicken breast, turkey breast, crumbed ham, and traditional ham. This mouthwatering range is available in 140g packs, presented in impactful Shaws packaging. The launch will be supported with new TV advertising, PR support, PoS, national couponing and instore activity.

Volvic’s Natural Pick Me Up VOLVIC Revive is a delicious and stimulating fruit flavoured water drink that’s designed to give an invigorating lift. Volvic Revive with 97.8% Volvic Natural Mineral Water plus ginseng & guarana is the ideal pick me up. Volvic Revive is available in two delicious flavours, Berry Blast and Citrus Kick, and is available in 50cl bottles with a sports cap.

Brennans Launch Polish Bread BRENNANS have launched new Polski Chleb or Brennans Polish Bread, baked at Brennans to an authentic Polish recipe. With over 200,000 Polish and Eastern Europeans living in Ireland at present, Brennans believe that a clear opportunity exists to provide people with the ‘Home away from Home taste’. Brennans can utilise their nationwide distribution network to reach this target market.

Orbit’s Magic 30 THE Wrigley Company’s iconic Orbit brand is celebrating its 30th birthday! First launched in 1977, the much-loved brand, with its new Orbit Complete format, is celebrating its 30th year on the market and is enjoying an uplift in sales of 30%. Wrigley’s recent re-launch of the brand as Orbit Complete is the latest innovative step to allow Orbit to continue to meet the health demands of chewers.

Shaws Handcrafted Breakfast Meats THE new range of Shaws handcrafted rashers and sausages offer premium quality meats in a craft-butcher style packaging format unique to the category. The two delicious products available within this range are Handcrafted Dry Cure Rashers, cured using a new unique sea salt recipe, lightly smoked and left for a number of days to cure and develop a mature flavour; and Handcrafted Sausages, uniquely packed in a butcher-style parchment bag, naturally cased and handmade to attain that perfect Shaw’s taste. Both products will be supported by a heavyweight marketing and PR campaign throughout the remainder of the year. 102

Lucozade Hydro Active’s Excellent Offer LUCOZADE Hydro Active is running a superb promotional offer in stores around the country throughout the month of July, whereby consumers receive a handy Hydro Active free exercise towel with every two bottles of the product purchased. The move is perfectly pitched to appeal to fans of the premium fitness water and is sure to attract new users for whom exercising to stay fit and keep in shape goes hand in hand with the warmer months. The promotion will be strongly supported in-store for maximum visibility, with a range of eye-catching Point of Sale material available for retailers.


RN June07Shelf Life ●

Shelf Life CHARLEY Stoney has been appointed Managing Director of FMI Ltd, one of Ireland’s leading field management companies. She brings to the role a wealth of senior brand and corporate experience in sales, marketing and IT, both in Ireland and the UK.

PAUL Kelly has been appointed Senior Brand Manager at Birds Eye Ireland. With over eight years experience working in the food and drinks industry, Paul brings a wealth of knowledge to his new role, where he will be responsible for the marketing of the vegetable, poultry and red meat categories.

YVONNE O’Callaghan has joined C&C Wholesale as Soft Drinks Brand Manager for the on-trade. She will be responsible for 7UP, Pepsi, Ballygowan, Club Energise, Club Mixers, Britvic and Cidona. With more than six years in the industry, Yvonne brings extensive experience in the licensed trade to the company.

SMIRNOFF vodka is the most valuable wine and spirits brand in the world, according to Power 100, a new study carried out by brand valuation consultancy, Intangible Business (www.intangiblebusiness.com). The Diageo-owned brand beat off stiff competition to come top of the well-respected listing. The league table, which assesses both financial contribution of the brand alongside its strength in the eyes of the consumer, has been compiled by combining scores from a panel of some of the world's leading drinks industry experts with hard data. In the same study, Baileys was voted the 10th most recognised alcohol brand in the world.

THE winners of the Galtee Lighthouse Competition (run in association with Asda NI) were recently presented with their prizes of a weekend trip for four people to a National Heritage property of the winner's choice. Winners even have the opportunity to stay in a lighthouse! Trevor Abernethy from Ballyclare is presented with his prize by Asda’s George Rankin (left) and Conleith Gilligan (right) from Breeo Foods (Galtee). BORD Bia has launched a major campaign to promote Irish lamb on the home market and is planning a similar promotion in France shortly. The Irish campaign, which includes a TV ad and 250,000 recipe leaflets (distributed to retailers and butchers), encourages consumers to try high quality new season lamb and to choose a lamb dish on Féile Bia menus when eating out, with Bord Bia asking all Féile Bia chefs to highlight a special lamb dish on their menus during the promotional period.

SHAWS were the sponsors of the recent Bloomsday Bike Rally and Lunch 2007, which saw over 70 cyclists with messenger bikes gather at the Wolfe Tone statue in St Stephen’s Green for the Shaw’s breakfast, with the Lord Mayor of Dublin, Cllr Vincent Jackson. The cyclists, dressed in Edwardian attire, then made their way through the streets of Dublin before reaching the Round Room at the Mansion House, where they enjoyed lunch and a charity auction. BB’s Coffee & Muffins, one of Ireland’s fastest growing shopping centre cafés, has opened its first ever Irish franchised location in St. Laurence’s Shopping Centre, Drogheda, Co. Louth. The call for franchisees was launched in the autumn of last year when BB's called on interested parties with €60,000 to €80,000 liquid capital to sign up for the lucrative business opportunity. The response has been phenomenal with six more franchises already scheduled to open this year. Franchisees Martin Breen and Barbara McDonnell are pictured at the Drogheda café.

RETAIL NEWS’ Motoring Correspondent Padraic Deane has been appointed to represent Ireland on the World Car of the Year (WCOTY) jury. The role also includes adjudicating on the 'World Green Car', the 'World Performance Car', and the 'World Design of the Year'. Having represented Ireland on the International Engine of the Year awards for the past eight years, he retains this role in addition to his expanded responsibilities. Padraic has served as Chairman of the Irish Motoring Writers Association (IMWA) from 2004 to 2006, and he still votes on the Irish Car of the Year, Irish Van of the Year and associated awards. He is the publisher and managing editor of Automotive Publications, whose publications and websites include Auto Trade Journal, Bodyshop Journal, Tyre Trade Journal and the Motorshow Car Buyers Guide Annual. 104


Retail News June 2007  

Retail News June 2007.

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