RN April 2014

APRIL 2014

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The Illicit Tobacco Trade Review Impact of Illegal Tobacco on Ireland

GOVERNMENT LOSS

€250m R E TA I L E R LOSS

€450m CRIMINAL GAIN

€150 m SEE WHAT CAN BE DONE stopillicittobacco.com

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

News

Tackling the Big Issues IS our Government doing enough to support the grocery sector? The answer, according to Jim Barry, Barry Group Managing Director, is an emphatic ‘No!’ One of the most respected voices in independent grocery, Barry pulls no punches in an exclusive interview (Page 18-21), where he lambasts the Government for allowing last December’s “crazy behaviour” to go ahead, where vegetables were sold for as little as 5 cent. Describing such promotions as “totally irresponsible to consumers and unjust on retailers”, Barry is forthright in his views on the big issues facing the Irish FMCG sector. It’s not just the Government who Barry targets, but the banking sector, the proposed re-introduction of JLC’s and the high costs of doing business in Ireland.

Elsewhere, we talk to the Irish Grocers Benevolent Fund’s incoming President Of Appeals, BWG Foods’ MD, Willie O’Byrne about the importance of the IGBF in 2014 and what needs to be done to ensure the Fund can continue to support over 300 families across the country from the grocery trade (Page 30).

In a boost for NPD, we report on Amárach Research’s innovative new market research system, allowing manufacturers access to a team of food and drink industry specialists plus a hand-picked panel of super-consumers who have a heightened level of product awareness (Page 33).

As the debate over the proposed introduction of plain packaging for tobacco products intensifies, we talk to John Players’ Carmel Balala, Trade Marketing Manager, and Deirdre Healy, Corporate Affairs Manager, on this and the other factors facing the sector (Page 39).

Finally, considering the noises made by our Health Minister, Dr James Reilly TD, about taking on the tobacco companies over plain packaging, it is somewhat ironic that we report on the fact that the HSE was forced to pay legal costs to two of Ireland’s tobacco companies, following a 2012 court ruling (Page 5).

Kathleen Belton Editorial Director kathleenbelton@retailnews.ie

Contents Tax & Finance 11

4

A brief Q&A of some VAT matters under current legislation which apply to the retail sector.

30

The Retail News Interview 18 4

Competition Bill slammed by retailers.

5

HSE made legal fee payments to tobacco companies; FSAI launch free calorie calculator.

6

In an exclusive interview, Jim Barry, MD of Barry Group, discusses what the Government should be doing to help the Irish retail market, the proposed introduction of plain packaging for tobacco products and the continued strong performance of Barry Group.

Irish Grocers Benevolent Fund 30

18 6

7

8

Alcohol consumption falls by 7.6%; UCD Aspire scholar wins prestigious Musgrave Award.

9

Illicit trade costing €1.53 billion; Seafood sector to increase sales to €1 billion by 2017.

10

Tobacco

Londis profits increase to €1.67m; New proposals for organic products.

Aldi and Lidl continue to set the pace; EUROSPAR retailers confident on future growth; Magazines Ireland Conference.

Willie O’Byrne, Managing Director, BWG Foods, is the new President of Appeals for the Irish Grocers Benevolent Fund. He explains why the Fund is now more important than ever, how the Fund needs some new blood and how the IGBF is modernising for the 21st century.

39

Shop Profile 28

Niall Smith’s Gala store in Newtownforbes, Co. Longford, is a perfect example of how Gala continues to meet the local needs of shoppers.

28

When it comes to the tobacco category, the big challenge is dealing with the constant regulatory changes. John Players’ Carmel Balala, Trade Marketing Manager, and Deirdre Healy, Corporate Affairs Manager, discuss the big issues facing the sector.

Retail Ireland: Monthly Update

52

Bosco brings back 25m batteries; AIB Start-up Academy; Glanbia chief honoured by UCD.

Retail Ireland welcomes absence of “Grocery Code” in new regulations; Supporting new green guidelines for retailers; Final tickets for Annual Conference.

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12 Industry News 22 Ice Cream 34 Bread 43 Cigarettes & Tobacco Requisites

53 54

Drinks News Shelf Life

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

News

Competition Bill Slammed

by Retailers NEW legislation, designed to prevent unfair practices in the retail industry, has been condemned as not taking supplier abuses of power into consideration.

The Competition and Consumer Protection Bill 2014, published in March, is designed to introduce regulation around commercial relationships between suppliers and retailers. According to Jobs Minister Richard Bruton TD, the new watchdog will combat “serious whitecollar crime, and ultimately combat higher prices, and protect consumers”.

The legislation, however, is geared toward supplier complaints. “I’m not sure the bill, as it stands, will do anything impressive for small retailers,” said RGDATA Director General, Tara Buckley.

“It is limited entirely to suppliers within grocery,” said Vincent Jennings, Chief Executive of the

Convenience Stores and Newsagents Association (CSNA). “We sought for the Bill to include all suppliers into retail outlets. If you look across your entire SKU’s, some items are considered grocery, while others are not.”

Supporters of the Bill claim it will help farmers who are facing falling prices in supermarkets. “Retailers will no longer be able to demand goods at unrealistic prices from suppliers or change the terms of a contract unilaterally,” said Fine Gael TD, Alan Farrell.

“This new approach is better for consumers, for jobs and for food sustainability.”

However, the legislators failed to consider that some international suppliers are bigger than almost any retailer in the Irish market. In Ireland, smaller retailers often claim supplier abuses of power, in cases such as mobile phone operators or newspaper

distributors changing terms of conditions, or imposing unfair practices, without dialogue or consultation.

“The legislation certainly isn’t two-way,”

Vincent Jennings, Chief Executive, CSNA.

continued Jennings, “despite recommendations to the contrary. This is the end process of a long and torturous consultation route.

Limiting it to the grocery sector is not a fair way of looking to curb perceived excesses.”

Frank Gleeson, Retail Ireland Chairman, said that any legislation between supplier-retailer relations must be a two-way street: “In certain supply chains, there is dominance of suppliers, which means there is limited choice and opportunity for retailers.

Mobile top-ups have been decimated by the fact there is limited choice.

The dominance is on the supply side. It’s at really unsustainable levels for retailers.”

The legislation was introduced to combat unfair practices such as Hello Money, even though there are no proven incidences of this happening. “I’ve been in the supply and the retail side for 30 years, and I’m not aware of it,” added Gleeson.

Regulation that arises from the bill may deal with supplier abuses of power. However, some retailers worry about the administrative implications

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

News surrounding the bill. “The big issue is that it doesn’t add to the red tape burden, or increase costs, for independent retailers,” said Buckley.

Retail Ireland, however, welcomed the fact the bill does not set down an expensive or bureaucratic code of conduct, and does not provide for a levy on retailers.

As part of the legislation, the National Consumer Agency and Competition Authority will be merged.

RGDATA recently made a complaint to the Competition Authority about An Post, a significant retail supplier. The state-owned

RGDATA Director General, Tara Buckley.

postal provider, An Post wrote to postmasters across Ireland, asking them not to engage in services competing with An Post.

“Some postmasters have Payzone machines or Parcel Motels in the car park,” said Vincent Jennings.

“They were told they are not allowed to engage in any of those activities because they compete with An Post’s activities. It is an abuse of a dominant position.”

Gleeson said the supplier-driven bill was an example of the need for grocery retail groups to unite on common issues, providing greater lobbying power on areas such as supplier dominance, which effect retail viability: “We are very fragmented in retail. We tend not to work together on the common industry issues.

We will fight like dogs in the street when competing (with each other). That’s absolutely necessary. But we need to co-operate when there are issues around legislation or supply chain that affect us all.

“We managed to pull together to get a voluntary code in place around structural separation of alcohol, for example. The Minister for Justice has signalled he will bring in a workable code from a retailer perspective.

That would never have happened if retailers didn’t pull together in the face of a crisis. We need to work together more in the future.”

HSE Made Legal Fee Payments to Tobacco Companies THE Health Service Executive (HSE) paid substantial legal fees to two tobacco companies last year, Retail News can report. In 2011, the HSE took PJ Carroll to court over promotions the cigarette company ran in the trade. They also sued John Player, but dropped the case after they lost to PJ Carroll. Last year, the Executive paid legal fees to both companies. A spokesperson for John Player confirmed these payments, while a spokesperson for PJ Carroll confirmed the HSE paid legal costs of approximately €5,000 in 2013.

The HSE had prosecuted PJ Carroll & Company, part of British American Tobacco (BAT), for allegedly providing financial assistance to retailers for promoting tobacco products. Through the promotion, mystery shoppers would

test sales assistants and reward them with a €30 voucher if they used the appropriate promotional phrase. In the 2012 judgement, the High Court upheld the District Court’s decision to dismiss the prosecution. The courts found that the voucher was a “prize” or “award” and did not constitute “financial assistance”.

HSE paid John Player’s legal costs in the last quarter of 2013. “We will not be releasing details of the monies paid to us by HSE,” said a spokesperson. “As our case never got to court, our costs were only to pay legal costs of seeking adjournment.”

In an interview last year, Health Minister James Reilly TD said he was not surprised the tobacco firms would fight him “every step of the way” over the issue of plain packaging. In light

of the HSE payment, which ultimately came out of taxpayer coffers, the outcome of any future legal action may not necessarily be in the Government’s favour.

FSAI Launch Free Calorie Calculator THE Food Safety Authority of Ireland (FSAI) has unveiled ‘MenuCal’, a new online calorie calculator that the FSAI is making available to Ireland’s 22,000 food service businesses free-of-charge to enable them to calculate the calorie values in the food they sell and serve to customers.

The online tool, which was launched by Dr James Reilly TD, Minister for Health, was developed to address the food industry’s concern about the lack of the expertise and resources to accurately calculate calories for display on menus and the associated

costs involved.

In response, the FSAI brought together a team of nutritionists, computer scientists and food business trainers to create a bespoke, easy-to-use solution for the Irish market that would act as a resource to assist chefs and cooks identify calorie values, taking account of types and quantities of

ingredients used, method of preparation and portion size. MenuCal is considered a first of its kind in Europe and the FSAI has already received interest from other jurisdictions wishing to adopt the system.

Dr Mary Flynn, Chief Specialist: Public Health Nutrition, FSAI, stated that MenuCal addresses the

technical obstacles to putting calories on menus in food businesses in Ireland. Dr Flynn stated that those food businesses who want to be at the forefront of consumer service will be the ones who will benefit and gain competitive advantage by displaying calories on their menus.

“Our research shows that there is an overwhelming demand and desire by consumers (96%) for displaying calories on menus and that nine out of 10 consumers want calorie information displayed beside the price of food and drink items on the menu,” she said.

MenuCal can be tried and tested at www.menucal.ie

6|Retail News|April 2014|www.retailnews.ie

News

Londis Profits Increase to €1.67m ADM Londis plc has announced a profit before tax of €1.67m for the year ended December 31, 2013, an increase of 35% on the previous year. Organic (like for like) turnover, excluding low margin tobacco and call credit categories, grew by 1% in the period.

“2013 was a very successful year for the group, with profits up substantially, a sustainable increase in margins and further enhancements to our buying power, marketing execution and capital structure,” said Londis Chief Executive, Stephen O’Riordan.

“Whilst overall retail sales are showing some growth in 2014, it will take some time before this is reflected in grocery market performance. We expect to see very little improvement in household finances in 2014, suggesting that consumers will remain acutely conscious of day-to-day spending.

“Notwithstanding, the Group is beginning to see the trading benefits of new stores recruited to the Group in 2013 and this has been further underpinned by our new partnership agreement with the Griffin Group post year end. We see this as a strong endorsement of the Group’s retailer offering and partnership approach.”

Profit from ordinary trading improved as a result of a more favourable mix of sales, with reduced reliance on low margin categories and increased volumes through Londis’ higher margin chilled distribution network. The conclusion of a 10-year goodwill amortisation process for its Londis Top Shop acquisition in 2003 also delivered a year-on-year benefit to the business of €0.35m.

Notwithstanding organic growth in core sales, total revenue in 2013 declined by 4.4% to €195m (2012: €204m), driven in the main by a decline in the tobacco and call credit categories and the closure of a small number of underperforming stores.

One of the Group’s major

developments in 2013 was an agreement to join the Stonehouse Group and thereby leverage a combined buying power of close to €1.5 billion at retail level. This strategic buying arrangement will be margin enhancing and will enable Londis’ retailers compete all the more aggressively with international multiples and discount chains.

On the diversification front, through its subsidiary Genisis Innovative Software, the Group is exploring significant expressions of interest in its innovative e-commerce platform which was developed internally by the Group and which has delivered significant savings to the supply chain.

Despite a challenging market for independent retailers, Londis’ store recruitment gained Londis Chief Executive, Stephen O’Riordan. traction in the second half April 2013) increase by 19% to €28.71 of the year, culminating since April 2012. The Company is in seven new store openings by year seeking shareholder approval to further end. These new stores will have a extend the share buy back in 2014. positive impact on 2014 turnover. This “2014 marks the Group’s 60th has been further boosted since year end year of trading and we will embark on following an extension (to 2019) of the a significant campaign of consumer Group’s partnership with the Griffin initiatives building on our ‘Local Like Group, one of the country’s largest You’ brand campaign,” noted Stephen symbol group retailers.

O’Riordan. “Sustaining retailer margin Total Shareholders’ funds increased will remain our overriding focus by 7% to €20.4m (up from €19.1m in 2014 as we continue to invest to in 2012) with net debt significantly unlock savings and efficiencies for our reduced to €1.1m (from€3m in 2012). retailers. The Stonehouse agreement, A dividend of 0.25c per share has been finalised towards the end of 2013, proposed for 2014. will further bolster the Group’s retail A successful share buy-back of offering, bringing enhanced pricing for 40,000 shares in 2013 saw the value of the company’s A Ordinary Shares (as at retailers and consumers alike.”

New Proposals for Organic Products THE European Commission has published new proposals for a new Regulation on organic production and the labelling of organic products. The proposals focus on three main objectives: maintaining consumer confidence, maintaining producer confidence and making it easier for farmers to switch to organics.

The Commission proposes: • to strengthen and harmonise rules, both in the European Union and for imported products, by removing many of the current exceptions in terms of production and controls; • to reinforce controls by making them risk-based; • to make it easier for small farmers to join organic

farming by introducing the possibility for them to sign up to a group certification system; • to better address the international dimension of trade in organic products with the addition of new provisions on exports; • to simplify the legislation to reduce administrative costs for farmers and improve transparency.

“The future of the organic sector in the EU depends on the quality and integrity of the products sold under the European organic logo,” said Commissioner for Agriculture and Rural Development, Dacian Ciolos. The proposal will now be submitted to the European Parliament and to the Council for approval.

Retail News|April 2014|www.retailnews.ie|7

News ALDI AND LIDL CONTINUE TO SET THE PACE THE latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending March 30, show strong sales growth for both Aldi and Lidl, with respective growth rates of 21.9% and 11.1%.

“Aldi has maintained a growth rate of over 20% throughout 2014,” explains David Berry, Commercial Director at Kantar Worldpanel. “This has boosted its market share from 6.4% last year to a record 7.9%. Aldi has capitalised by capturing more spend from its shoppers. Each shopping trip has grown by an average €2 per trip, with two additional items being added to baskets.

Lidl has also performed strongly, with double digit sales growth for the fourth successive month. “It posted a market share of 7.5% – just below its record 7.7% seen last August,” Berry noted. “This growth is likely to continue in the coming months, thanks to a number of recent new store openings.”

Meanwhile, market conditions remain tough for both Tesco and Dunnes, who have experienced sales

Magazines Ireland Conference MAGAZINES Ireland’s annual conference, entitled Publishing 360, takes place on April 30 in Chartered Accountants House, Pearse Street, Dublin 2.

Publishing 360 is a conference created by and for Irish magazine publishers to connect and keep up with the latest trends.

The Conference features a great line-up of speakers, covering subjects like the integration of print and online strategies; revenue growth through product development; is going native really the future of advertising?; the balance between consumer and B2B strategies; the changing relationship with the audience and finding the best way or combination of ways to deliver content, among the many options.

For more information, see www.magazinesireland.ie.

declines of 6.6% and 3.9% respectively.

Tesco has continued to attract high numbers of customers through its doors, with the number of shopping trips falling by just 1%. Its main challenge is that these trips are shrinking in size, with customers picking up one item less per shop.

Dunnes’ share of the market dipped

below 22% for the first time in six months, as 40,000 fewer shoppers have visited the retailer this year.

SuperValu performed slightly behind the market, with sales dipping by 1.6%, leading to a fall in market share of 0.1 percentage points, to 25.2%.

For further information, see www.kantarworldpanel.com.

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

12 Weeks to 31 March 2013 %*

12 Weeks to 30 March 2014 %*

change** %

100.0% 88.4% 27.5% 22.5% 25.3% 19.8% 5.5% 13.1% 6.4% 6.7% 11.6%

100.0% 88.4% 26.0% 21.9% 25.2% 15.4% 7.9% 7.5% 11.6%

-1.1 -1.1 -6.6 -3.9 -1.6 16.4 21.9 11.1 -1.4

*= Percentage Share of Total Grocers **= Refers to share growth or growth or decline not change in market share ***= Includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers And Cross Border shops

EUROSPAR Retailers Confident on Future Growth

Pictured are (l-r): Dr Gordon Campbell, Managing Director, SPAR International; Jerry Twomey, EUROSPAR Dungarvan and Chair of the National Council of EUROSPAR Retailers; Leo Crawford, Group Chief Executive, BWG Group; and Willie O’Byrne, Managing Director, BWG Foods.

ALMOST half of EUROSPAR retailers in Ireland are predicting growth in 2014, with over two-thirds planning additional investment in their stores. That’s according to the findings of a retailer survey released by BWG Foods to coincide with the EUROSPAR Conference, which took place in Dublin’s Marker Hotel recently.

In what delegates heard was a positive indication of economic recovery, independent supermarket retailers, representing towns and villages across the country, were upbeat about future growth, with 48% of respondents predicting business growth this year and 78% saying they planned to invest in their businesses in the next 12 months.

When asked about the biggest challenges facing local retailers in Ireland today – the vast majority (89%) cited the development of Out-of-Town Centres, followed by Emigration (63%) and Local Rates (59%).

8|Retail News|April 2014|www.retailnews.ie

News ALCOHOL CONSUMPTION FALLS BY 7.6% A NEW study has shown that average per adult alcohol consumption has declined substantially between 2012 and 2013. The study, conducted by economist Anthony Foley of Dublin City University on behalf of the Drinks Industry Group of Ireland shows that average consumption fell by 7.6% between 2012 and 2013.

The study further shows that average per adult consumption is now over 25% lower than 2001 levels and is back at pre-1990 levels, which highlights the fact that the most recent fall is indicative of a longer running trend in consumption levels.

“There was a decline in all four beverage groups, with the decline in spirits greatest at 11.9%, followed by wine, which declined by 8.9%, beer, which declined by 6.2%, and cider, which declined by 2.5%,” noted report author, Anthony Foley.

Commenting on the figures, Peter O’Brien, Chairman of the Drinks Industry Group of Ireland (DIGI), acknowledged that “there is still a problem of alcohol misuse by the minority and we can all agree that there is a notable culture of tolerance for alcohol abuse which must be addressed”.

However, he argued that while increases in excise duty may contribute to a reduction in overall consumption, they do very little to influence how alcohol is actually consumed. “The Government’s punitive excise increases have not affected societal change and it is clear that we need evidence based solutions to solve the problem,” he said. “We would urge the Government to reverse recent excise increases that penalise the moderate consumer and threaten the future of our jobs, investment, the on-trade sector and our

Pictured at the launch of the Irish Whiskey Association are Aoife Keane, Head of the Irish Whiskey Association; Simon Coveney TD, Minister for Agriculture, Food and the Marine; and Peter Morehead, Chairman of the Irish Whiskey Association and Production Director at Irish Distillers.

farm purchases.

“Tax will not solve the misuse of alcohol by a small percentage of the population. It only leads to less investment, job losses and less raw material and services purchase in Ireland.”

DIGI has urged the Irish Government to take a similar approach to the UK, where George Osbourne recently removed the alcohol duty escalator in their Budget, stating that Scottish whisky was a huge British success story and that he wanted to support its continued success.

“We would call on the Irish Government to consider our own domestic success stories, and to support indigenous products such as Irish whiskey, beer and cream liquors in a similar manner, and support the 62,000 people that are directly employed by the sector,” noted O’Brien.

The Irish Whiskey sector is set to invest over €1 billion in Ireland in the next 10 years. The announcement was made at the recent launch of the Irish Whiskey Association, which brings together new entrants and existing companies to promote Irish whiskey and to ensure the product is given vital protection going forward.

Describing Irish Whiskey as “a star of the Irish food and drink sector”, Simon Coveney TD, Minister for Agriculture, Food and the Marine, noted how “export expansion, at least 15 new distillery projects and planned investment of €1 billion over the next 10 years is a significant mark of confidence in our economic future.

We can be proud of the quality, craft and heritage which Irish Whiskey epitomises and look forward with excitement to the future of the industry. “

UCD Aspire Scholar Wins Prestigious Musgrave Award THE prestigious Musgrave Award for the highest performance for an MSc Finance student has been awarded to Andrea Lyng, an Aspire Scholar at UCD Michael Smurfit Graduate Business School, who was awarded €1,000 by the Musgrave Group, who have sponsored the award since 2007.

“We are delighted to once again show our support for Irish business students in awarding Andrea this deserved prize,” said Liz

O’Mahony, Learning & Development Partner, Musgrave Group. “At Musgrave, we believe in developing and nurturing entrepreneurial business talent that delivers not only for our business but that of our retail partners and suppliers. Our ongoing partnership with Smurfit Business School, Ireland’s leading business school and research centre, illustrates our commitment to Irish businesses and communities.”

Andrea Lyng, winner of the Musgrave Award, is pictured with Liz O’Mahony, Learning & Development Partner, Musgrave Group.

Retail News|April 2014|www.retailnews.ie|9

News ILLICIT TRADE COSTING €1.53 BILLION IRELAND’s illicit trade in fuel and tobacco is worth €337m per year, while the level of money laundering activity in Ireland is estimated to be at least €3 billion, according to a new report from business advisory firm Grant Thornton. The report, ‘Illicit Trade: an Irish and Global Challenge’, argues that while the 2010 Criminal Justice Act has improved the regulatory environment, money laundering activity remains a threat to Ireland’s reputation as a financial centre and is benefiting criminal gangs.

The costs incurred to the economy from money laundering includes the loss of Government revenue from taxation on counterfeit fuel, alcohol and tobacco and the cost of enforcement of legislation through money spent on Gardaí and regulatory bodies.

“Our research estimates that illicit trade in fuel and tobacco alone is as much as €337m, with much of this going into criminals’ pockets,” stressed report author and Grant Thornton Partner, Brendan Foster. “Money laundering allows these illegal proceeds to penetrate the legitimate financial system. New threats such as the unregulated nature of payments with virtual currencies such as Bitcoin also pose new challenges to controlling what is a global problem.”

The report builds on a similar study conducted

Frank Gleeson, Chairman, Retail Ireland.

last year, which found that illicit trade in the retail sector was costing the Irish economy as much as €1.48 billion per year. A limited Government response and continued weak penalties for violations of the law have meant losses have increased 3% in this year’s estimate to €1.53 billion, comprised of €587m in lost revenue to rights holders and retailers through sale of illegal and counterfeit fuel, tobacco, pharmaceuticals and digital products such as music and video games. A further €946m is estimated to be lost to the Exchequer in lost tax revenue.

Research for the report also polled the views of consumers and retailers on Right holders/ retailers lost revenues, €’m

the issue of illicit trade in the retail sector and found widespread recognition that it is a growing problem: • 77% of consumers said that it was easy to buy illegal tobacco; • 1 in 3 consumers have knowingly acquired a pirated product; • 74% of retailers believe organised crime is involved in fuel laundering; • 72% of retailers think the Government response to the threat of illicit trade has been too little.

The report was launched at a conference in Dublin attended by participants from affected sectors.

Speaking at the conference, Frank Gleeson, Chairman of Retail Ireland, described the illicit trade as both an Irish and global challenge.

When it comes to illicit fuel sales, he pointed out that at least 12% of diesel sold in Ireland is illegal.

Agricultural diesel sells for around 50c cheaper per litre than regular diesel, and the price differential acts as an incentive for criminal elements to launder the fuel and remove the dye. Gleeson Government loss to Exchequer, €’m

Total loss to the economy, €’m

Low

High

Low

High

Low

High

Fuel laundering

€112

€205

€142

€261

€254

€466

Tobacco

€54

€122

€240

€575

€294

€697

Digital piracy

-

€260

-

€57

-

€317

Pharmaceuticals

-

-

€25

€53

€25

€53

€166

€587

€407

€946

€573

€1,533

argued that a better system would see price equalisation and a subsequent rebate system. While noting recent measures, such as the introduction of a new marker to foil fuel laundering gangs, Gleeson stressed that more needs to be done.

When it comes to illicit tobacco, he said, the official estimate is that one in every seven cigarettes smoked in Ireland is illicit, while some estimates put that figure at closer to 25%.

Illicit tobacco sales cost Ireland as much as €600m per year in lost exchequer revenue, he said, while pointing out that smugglers are now trafficking smaller, more discreet batches and adopting sophisticated tactics, with seizures having dropped as a result.

He called for investment in more law enforcement resources to tackle the illicit trade, with strict control and regulation of street markets. Fines for tobacco smuggling in particular remain low, and Gleeson called for enhanced penalties and deterrent measures, as well as financial rewards for the public for providing information. “It is now time to seriously consider criminalising the purchase of illicit goods,” he argued.

Other speakers at the conference included Brian McElligott, Associate, William Fry Solicitors; Dr Vanessa Neumann, Sub-chair, Task Force on Charting Illicit Trafficking, OECD; and Constantin Gurdgiev, Economist, Trinity College Dublin.

Seafood Sector to Increase Sales to €1 Billion by 2017 THE Irish Seafood Sector has the potential to increase sales to €1 billion and deliver 1,200 additional jobs by 2017, according to a recent BIM organised industry conference titled ‘Capturing Ireland’s Share of the Global Seafood Opportunity’, which was held in the Aviva Stadium, Dublin.

One of the major priorities for

BIM is to assist the sector to build scale. Jason Whooley, BIM’s Chief Executive outlined the opportunities for the sector and the agency’s plans to assist the ‘scaling up’ of the industry: “Ireland is being presented with opportunities for unprecedented sectoral growth that are largely dependent on our ability to produce and supply fish and related products

to an increasing world population and its growing demand for seafood, which will see the global requirement for fish grow by an additional 42m tonnes per annum by 2030. The opportunities being presented to industry can only be fully utilised if Ireland increases sustainability, competitiveness, grows industry scale and expands the raw material base.”

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

News BOSCO BRINGS BACK 25M BATTERIES THANKS to a helping ‘hand’ from Ireland’s favourite puppet, the Irish public recycled more batteries than ever in 2013! WEEE Ireland have announced that more than 25m portable waste batteries have been collected across the country as part of the 2013 Spread a Little Sunshine campaign for LauraLynn. As a result, €90,000, was donated by WEEE Ireland to Ireland’s only children’s hospice, thanks to the success of the 2012/13 campaigns and the widespread public support received.

WEEE Ireland teamed up with Bosco in 2013

for the Spread a Little Sunshine campaign, with the aim of recycling as many portable waste batteries as possible, whilst also creating a monetary fund for LauraLynn. Batteries are collected and recycled at a cost to the scheme but WEEE Ireland wanted to encourage people not to throw them in the bin but recycle instead and hit upon the idea of donating to the LauraLynn Children’s Hospice, based on the recycling effort.

“We are absolutely thrilled with the response to the campaign in 2013,” said Elizabeth O’Reilly, WEEE Ireland. “Bosco

really struck a chord with the Irish public and it is a fantastic achievement that we can make this donation to

AIB Start-up Academy

LauraLynn.”

By the end of 2015 we need to have at least a 45% battery take-back rate.

Glanbia Chief Honoured by UCD

Pictured are John Irwin, Head of Strategy, Business Banking at AIB, and Sinead Cummins, Head of B2B Marketing at AIB, with Bobby Kerr and Sonya Lennon at the launch of the AIB Start-up Academy in conjunction with The Irish Times.

THE AIB and Irish Times have collaborated to launch the AIB Start-up Academy, a new initiative to support entrepreneurs across Ireland. Both AIB and The Irish Times are working together to build a nationwide community of entrepreneurs from all sectors and with all levels of experience.

From April to October a series of Start-Up Nights will draw together a mix of entrepreneurs, mentors, and investors at gatherings in cities and towns across the country. These events are for start-ups from all backgrounds and at all stages, including those who are considering starting up a new venture for the first time. Successful and experienced entrepreneurs will be on hand at each event to give share their stories and to network with attendees.

The programme kicked off with the first Start-Up Night on April 3 at a packed 4 Dame Lane. Bobby Kerr, Chairman of Insomnia and former Dragon, and Sonya Lennon, fashion designer and founder of fashion startup FrockAdvisor, discussed the trials and tribulations of entrepreneurship.

Later in the year, participants will be able to win places on the AIB Start-up Academy programme, which will begin in early 2015. The programme will provide support for their early stage businesses from The Irish Times and from AIB in the form of mentoring and coaching for finalists.

SIOBHAN Talbot, Group Managing Director, Glanbia plc, was honoured recently at the UCD Business Alumni of the Year 2014 Awards fundraising dinner at the Four Seasons Hotel, Dublin.

The Alumni Awards, which have been running since 1991, are the highest honour UCD Business bestows upon its graduates, recognising alumni who have demonstrated proven leadership skills, notable achievement in business and a significant contribution to the community, whether in Ireland or abroad.

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

Tax & Finance

VAT Matters in the Retail Sector THE VAT rate applicable on the payment may be applied by the supply of food and drink in the Revenue Commissioners on retail sector varies depending on the sum outstanding at the due the product. Therefore, a number date. of VAT rates must be considered What is the VAT rate for to ensure accuracy when drinks? completing your VAT return Alcohol, soft drinks (excluding with the Revenue Commissioners certain fruit juices at 9%), for the particular period. bottled water and health drinks As most retailers have a are liable to the standard rate scanning system for the sale of of 23%. each item, this ensures accurate What is the VAT rate for records of the VAT on sales cold food (sandwiches) takeand VAT on purchases at each away?

Director: Martin Hyland, particular rate. However, a key ACCA, AITI Chartered Tax Adviser, The above item is zero-rated for element for this system to work VAT purposes.

Tax Accounting Ireland. accurately is to ensure that the What is the VAT rate for hot basis, depending on your initial set-up of the VAT rates take-away food for inclusive agreement with the Revenue applicable to each particular price?

Commissioners. Each return item on the till system is correct.

For example, a bread roll with must be filed & paid by the We have detailed below, a a cold item (e.g. coleslaw) and 19th of the following month, brief Q&A of some VAT matters hot chicken is all liable to VAT depending on your above basis, under current legislation which at the second reduced rate (9%). or the 23rd if the VAT return is apply to the retail sector.

The term hot take-away food is filed online via ROS. What is the deadline for understood as cooked food which Do penalties apply if I file filing a VAT return? is supplied while hot for the my VAT return late?

VAT returns are filed purpose of consumption while Penalties do not apply. bi-monthly, quarterly, bihot, that is, at a temperature 0314-TAI01 News HP PressAd-v2_Layout 1 30/03/2014 1 the ambient air However, interest on late 15:47 Page annually or on Retail an annual above

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temperature i.e. hot deli counter items.

What is the VAT rate for chocolates, sweets etc?

The vat applicable is the standard 23%.

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

Industry News SPAR’s Gluten-Free Sweet Treats

SPAR are launching a new own brand gluten-free range of cakes and brownies, all made by Denise O’Callaghan in her bakery in Little Island, Co. Cork. Denise quit her high-flying investment banking job in London when her father was diagnosed as a coeliac and started a new career as a baker. With SPAR Gluten Free Chocolate Brownies for €1.39, SPAR Gluten Free Lemon Loaf for €2.99 and SPAR Gluten Free Chocolate and Orange Loaf for €3.49, they’re good for consumers’ health and their wallet. “Many of our customers have an allergy to wheat, gluten or dairy, and we don’t believe they should have to miss out. Including these products in our own brand range ensures they are also excellent value for money,” noted Willie O’Byrne, Managing Director, BWG Foods. Denise O’Callaghan is pictured with Graham Moore, manager of SPAR Little Island.

Donal Skehan Launches New Pie Brand DONAL Skehan, of Kitchen Hero TV fame, has launched a new pie brand, called Skoff in supermarkets across the country, featuring prime Irish chicken, beef and pork. The pies have a deep fill with a variety of delicious home cooked recipes, including, sweet and spicy pulled pork, hearty beef and stout and tender chicken with smoked ham. They are baked and produced at Donal’s parents’ award winning food company, Fresh Cut Foods in Dublin, so it really is a family affair. Donal worked with Dublin based design and brand agency, Creative Inc on the brand, which reflects his love of all things retro, with typography and stark graphic teeth a playful nod to the works of ‘50s American book designers and typographers. The Skoff range has already been snapped up by top Irish retailers, including SuperValu, Dunnes Stores, Centra, SPAR, Fallon & Byrne and Nolan’s Supermarket.

Wing Your Way to Brazil with Moy Park MOY Park is giving football fans across Ireland and the UK the chance to jet off to Brazil this July to soak up the football fever at the 2014 FIFA World Cup. Moy Park, an official sponsor of the 2014 FIFA World Cup, is offering one lucky winner the opportunity to get their hands on an exclusive trip for two to Brazil - with flights, accommodation at the 4 Star Faria Lima Hotel in Sao Paulo and two tickets to the semi-final on July 9 included in the prize. The competition runs on Moy Park branded products and moyparkchicken.com until May 23. As part of parent company Marfrig’s World Cup sponsorship deal, the Moy Park brand will be beamed to millions of viewers across the globe on pitch perimeter boards during matches.

Fyffes Supports UNICEF Vaccination Campaign OVER the coming months, Fyffes will run an on-pack promotion on their Freddy Fyffes product in support of UNICEF Ireland and its efforts to eradicate polio worldwide. Operative in Dunnes, SuperValu, EUROSPAR and other leading retail outlets, the promotion is designed to engage consumers in the campaign with one life-saving vaccination donated to UNICEF for every UNICEF branded bag of Freddy Fyffes purchased.

The objective of this campaign is to immunise some 1m children, age five years and under, as part of an overall drive by UNICEF to eradicate polio worldwide by 2018. The campaign will be supported with a nationwide outdoor advertising and digital campaign, while primary schools around Ireland are also being invited to join the campaign via a colouring competition. UNICEF Ireland ambassador, Irish and Munster rugby star Donncha O’Callaghan is pictured with pupils Adam McNulty and Scott Kelleher, Fyffes Marketing Manager Emma Crewe and Fyffes character Freddy Fyffes on a recent visit to Donncha’s former primary school, Scoil an Spioraid Naoimh in the Cork suburb of Bishopstown.

Mum of the Year Awards Open THE Woman’s Way & Lidl Mum of the Year Awards 2014 are looking for nominations. Now in their 11th year, the Woman’s Way & Lidl Mum of the Year Awards give children, spouses or family members the opportunity to recognise and reward the fantastic work mums do for their families. 15 special mums will be chosen to attend the finals at a gala luncheon in Dublin, with each finalist receiving a luxury goodie bag worth €250. The 2014 Woman’s Way & Lidl Mum of the Year will win a fantastic €5,000 worth of Lidl vouchers, plus over €2,000 worth of pampering and luxury products.

Application forms are available each week in Woman’s Way magazine. Pictured are the 2013 winners: Celeb Mum of the Year Anna Daly and 2013 Mum of the Year Joan Egan from Kerry.

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

Industry News New SuperValu Opens in Kinsale SUPERVALU have opened a new store in Kinsale, Co. Cork, owned by local businessman, Michael Smith. The new 20,000 square feet store located at The Glen, New Road, Kinsale, represents a total investment of €13m and is set to create 35 new jobs, bringing the total employment at the store to 115. The new supermarket will give the people of Kinsale a whole new shopping experience, as this store will boast a superb fresh food range, which includes expert butchers and fishmongers, an excellent fresh fruit and vegetable selection and a range of exclusive breads and cakes made by its own bakers instore. Chef Mark Collins will run the store’s new kitchen, producing a wide range of freshly cooked soups, salads, lunch and evening meal ranges that will cater for the time pressed and discerning tastes of the people of Kinsale.

“I am proud to be opening this new bigger and better SuperValu store today,” said store owner, Michael Smith. “I am a sixth generation grocer.

My family have been in the retail trade since 1857. My grandfather opened the first self-service store in Douglas, Cork, in 1960. My wife and

I opened our first SuperValu in Kinsale town in 2002.

This store went from strength to strength and we had to make a decision to move to a bigger store to ensure we could continue to fully cater for our customers’ needs. However, I am delighted that we will continue to trade in the town with our new Centra store. This new store demonstrates our confidence in the local economy and our commitment to the community of Kinsale. I am proud that we have

the opportunity to invest locally, employ local people and support local farmers and producers, which will add to the overall shopping experience for our customers.”

Commenting on the announcement, Martin Kelleher, SuperValu Managing Director, said; “We are delighted to see stores grow and expand, allowing retailers to offer shoppers excellent shopping facilities locally. This significant investment from Michael Smith is a demonstration of

IFEX Cooks Up A Storming Event IFEX 2014 exceeded all expectations, according to Soraya Gadelrab, Event Director of IFEX. Visitor pre-registrations were ahead of previous years in the lead-up to the show and footfall was up by 45%, with exhibitors reporting excellent business and overwhelming positive feedback. Overall, 5,300 people attended IFEX, which took place over three days at the King’s Hall Pavilion, and trade was brisk for the almost 100 exhibitors. Stephens Catering Equipment Co. were the overall winners of the IFEX Product of the Show Award for their Garland Group Induction griddle cooking technology, while Gold Winners included CBE for the CBE/ PayPal Mobile Payments Platform, Suki Tea for their Dark Cocoa Tea and Golden Glen Catering for Middleton Gluten Free Batter.

SuperValu and its retailers’ commitment to contributing to building vibrant local communities. Customers can look forward to excellent customer service, top quality fresh food at exceptional value and a commitment to Irish and local sourcing.”

Pictured at the opening of the new SuperValu Kinsale store are Michael Morgan, SuperValu Sales Director, with Michael Smith, Smith’s SuperValu, and Martin Kelleher, Managing Director, SuperValu

Total Produce Trials NFC / Beacon ‘SmartStands’

SKYCIG TURNS BLU WITH NEW BRAND POSITIONING

Total Produce have begun trials of NFC-enabled fresh produce retail units, or ‘SmartStands’ in Ireland. NFC, or ‘Near Field Communications’ is a technology behind contactless payments, an innovation increasingly prevalent across European retail which allows transactions to be processed or information downloaded through close proximity to an enabled Smartphone. Fitted with NFC chips, Total Produce’s stands allow consumers to download customised fresh produce videos simply by tapping the NFC symbol on the side of the unit with their Smartphone, removing the need to scan a QR code.

Two types of themed stands will be trialled.

The first are TOP “Love Local” branded stands dedicated to promoting local produce.

Designed to increase supply chain transparency and close the gap between producer and consumer, these stands will link to short videos featuring the growers supplying the fixture. The second stand, branded TOP “Fresh n Ready” is orientated towards convenience outlets with quick, simple produce recipe videos uploaded daily for busy consumers “on the go”.

Total Produce are also exploring Smartphone Beacons, the Bluetooth based technology preferred by Apple which again dispenses with the need for scanning and automatically delivers content based on proximity to an installed device. Smartphone Beacons will be integrated into Total Produce SmartStands, alongside NFC before the summer.

SKYCIG will become blu eCigs from May 2014. The new direction follows the acquisition of SKYCIG by Lorillard Inc., owner of the best-selling American electronic cigarette brand, blu eCigs.

Using the striking designs as well as the bold branding and marketing of blu, SKYCIG plans to replicate the success of the brand in the UK and Irish market.

SKYCIG will also be transforming its brand positioning with a strong focus on lifestyle.

The blu eCigs product line, available from Ampersand, will feature the same premium technology exhibited in the SKYCIG range.

The product line will include rechargeable kits, superior quality cartridge refills, disposable e-cigarettes and charging accessories.

The same popular SKYCIG flavours will also be available under the blu brand.

Full POS support and acrylic stands are also available to support the launch in-store.

For more information, contact your Ampersand representative.

Move over to Costcutter.

Proud to be local

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

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

Industry News SuperValu To Sell €19m of Irish Lamb

HOLLY Carpenter is pictured at the announcement that SuperValu is expecting to sell €19m worth of Irish lamb, the equivalent of 132,000 lambs, in 2014 – more than any other retailer in Ireland. The first of this new season Irish lamb went on sale on Monday, April 14, when the first deliveries hit selected SuperValu stores across the country.

“SuperValu is the number one supporter of the Irish food industry and we continue to lead the way by selling more fresh Irish lamb than any other retailer in the country,” said Martin Kelleher, Managing Director, SuperValu. “Our customers are guaranteed the best quality as we’re also the only grocery retailer with a butcher’s counter in almost every store, enabling us to deliver the freshest meat and the know-how to make the most of it.”

Freshways Purchased from Kerry Quality Time From in MBO HB Hazelbrook Farm Foods FRESHWAYS, Ireland’s largest

CELEBRITY mum Yvonne Keating, together with Alicia Doyle, aged 5, are pictured at the launch of HB Hazelbrook Farm’s ‘Quality Time Together’ campaign, calling on Irish parents to make a date to spend quality time with their families. The campaign has been launched in response to research revealing that 88% of Irish parents would like more quality family time. Launching on www.facebook.com/hbicecream, the Quality Time Together campaign shares quality time ideas crowdsourced from Irish parents. “The HB Hazelbrook Farm Quality Time Together campaign shows parents just how easy it can be to enjoy time with our children,” noted Yvonne Keating. “We need to stop feeling guilty and make the most of the time that we do have together!”

sandwich maker, has been acquired in a management buyout from Kerry Foods

by Garrett Fitzgerald (pictured, left) and Diarmuid Shanahan (right). The business, which operates from a purpose built 60,000 square feet production facility at Finglas, will continue to employ more than 170 staff following the deal. The facility produces 300,000 handmade sandwiches each week for customers in the Republic of Ireland and Northern Ireland, as well as manufacturing sandwich filler for delis and the convenience store market.

ISIA Re-elects First Female President THE Irish Security Industry Association (ISIA) re-elected Sheenagh McCullagh of Stanley Security Ireland as its President at the association’s Annual General Meeting recently in Croke Park. McCullagh has been involved with the work of the ISIA for over seven years and has also served as Chairman of the Electronic Division and as Vice President. She was the first female to hold any seat on the ISIA’s Council of Management, the team responsible for managing this representative body.

She is pictured with Alan Durnan of Brinks Ireland, ISIA Vice President.

Musgrave Park to be Renamed Irish Independent Park GEOFF Lyons, Group Marketing Director at Independent News & Media, pictured with Munster captain Peter O’Mahony and secondrow, Donncha O’Callaghan at the announcement that Musgrave Park, the Cork home to Munster Rugby, is to be renamed Irish Independent Park, in a naming rights agreement with Independent News & Media. The partnership agreement which will come into effect next season is for a period of 10 years. “The Irish Independent is a proud partner to Munster Rugby with the newspaper now into its second season as Official Partner to the province, which is underpinned by our weekly rugby pull-out exclusively for our Munster readers,” said Lyons. “Irish Independent Park is a further demonstration of our continued support in helping to encourage and build the game of rugby in schools, clubs and at provincial level.”

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

The Retail News Interview

Barry Serves Up Stern Warning to Government Jim Barry, MD of Barry Group, pulls no punches in an exclusive interview on what the Government should be doing to help the Irish retail market, the proposed introduction of plain packaging for tobacco products and the continued strong performance of Barry Group.

JIM Barry is one of the strongest voices in the Irish independent grocery sector. His company, Barry Group, has grown to become one of Ireland’s leading wholesalers and distribution companies, supplying over 1,000 customers.

Originally founded in 1955 by Jim’s father, James A. Barry, the company today operates from a state-of-the-art distribution centre in Mallow, where it employs over 240 people. Under Jim’s vision and leadership, Barry Group has developed a huge franchise business, incorporating Costcutter, Carry Out, BuyLo and Quik Pick.

A well-known and respected figure within the trade, as well as a former President of Appeals of the IGBF, Jim is forthright in his views on the issues facing Ireland’s grocery sector and how they can be addressed.

How has Barry Group adapted its business model, given the harsh trading conditions of the last five years?

Barry Group has been continually evolving over the last four to five years. During the last 12 months, we have upgraded our processes in our buying and sales departments, as well as appointing new marketing partners.

These initiatives, plus many more, will greatly improve our service to our customers and support them in improving their offering to our valued consumers. It is vital for all businesses to constantly evolve and focus relentlessly on customers.

Do you think that the Government is doing enough in terms of helping Ireland’s retail grocery market?

I think that the Government has room to improve when it comes to helping the Irish retail industry, especially in the independent sector. I feel that it is reasonable to expect fair competition from larger competitors and not allow crazy behaviour like was experienced last December in the pricing of vegetables that were sold for as little as 5 cent. This made it impossible for honest, decent retailers to compete in the marketplace and to work with local producers. This behaviour should not be allowed by our Government. Larger retailers have, on some occasions, sold alcohol under cost.

This is totally irresponsible to consumers and unjust on retailers and should not be tolerated by our Government.

The independent retail sector has suffered from a lack of banking support. It is incredibly difficult for independent retailers to operate in a market where the banking sector is not properly functioning. This is an area where the Government should have done more.

I believe that the proposed introduction of the JLC on the independent and symbol sectors is totally unreasonable.

This type of thought process is unfair. Small and medium sized retailers cannot be treated in the same manner as multinational companies. The Government needs to be fair on the independent/symbol sectors in their final ruling in this area.

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

The Retail News Interview thus ensuring maximum value and service to the tax payer.

Costcutter has performed very satisfactorily, according to Jim Barry.

The grocery and FMCG sector is a massive source of employment in Ireland. How do you think employment in this sector could be increased?

If the Government were to address the issues I mentioned in the previous question, I feel it would be of benefit to independent retailers to be more positive about the future. Many retailers are still in ‘cost containment’ mode and it is vital that they move to a more positive place. Ultimately, consumer spending needs to improve for retailers to be in the frame of mind to take on extra staff. It is evident that many retailers want to move on to develop their business but they need to see some evidence of recovery in their area, as well as bank support, which will hopefully lead to business growth and extra jobs.

Have we bottomed out? Are we starting to see a resurgent FMCG market? Why do you think this is?

There are signs of recovery in certain areas like Dublin, Cork and Galway. So in these areas, I believe that business is getting better. However, in many other areas, there are no signs of recovery yet in the independent and symbol sectors.

It is a mixed bag in that, in some areas it has bottomed out but I’m not sure you can say that for all parts of rural Ireland.

How can we improve consumer confidence to ensure Irish consumers start to spend again?

I won’t pretend to have the answer to as to how we restore consumer confidence, but I do feel that we have gone too far where taxation is concerned.

Many Irish people feel they do not see the tangible benefits of their taxes, which I feel has had a major impact on consumer confidence. In many cases, the money left for discretionary

spending is little and this has impacted hugely.

The Government needs to review the impact of the current tax system in the minds of the consumer and explore the impact of a reduction in direct taxation. The amount of disposable income would have a major impact on consumer confidence, which will most

“I feel that it is reasonable to expect fair competition from large business and not allow crazy behaviour like was experienced last December in the pricing of vegetables that were sold for as little as 5 cent. This made it impossible for honest, decent retailers to compete in the marketplace.” likely lead to an increase in spending, which is what we need to kick-start the economy.

The Government should benefit from an increased indirect tax take and could balance the books by adopting a more efficient way to manage spending,

Many small businesses, including grocery retailers, feel they cannot increase staff levels due to the high costs of doing business in Ireland (labour, energy, Local Authority charges etc). What can be done to relieve the burden on retailers, so they can start to hire new staff?

High costs of doing business in Ireland are a major challenge to most small and medium businesses. It is very important to realise that if a small or medium business does not make a reasonable profit, they will lose the confidence of their bank and large creditors, which could possibly put them out of business. The Government has to ensure that the cost base which the business operator doesn’t control is kept in line, in order to safeguard as many as businesses as possible.

In some cases, businesses can control their costs by being more efficient, but costs like rates remain static, regardless of how poorly a business is performing. ‘Upward only’ rent is another major challenge to businesses in these difficult trading times. Energy costs remain a major challenge for most small and medium businesses. The Government needs to ensure that the costs in these areas discussed are fair and affordable and if this balance is not right, not alone will there be further job losses, but there will be further business closures, which will also have an impact on tax take and will further weigh on the already overburdened working tax payer.

The cost of labour, in particular, is extremely high here. The Government’s plans to reintroduce JLC rates have been broadly slammed by the trade. Where do you stand on this issue?

I don’t agree with the reintroduction of JLCs into small and medium sized retail businesses. At this point in time, many small and medium retailers are already finding it very difficult to survive in business, due to difficult trading conditions. Most likely, the introduction of a JLC model will further impact on the already excessive costs of doing business. It is unfair on small and medium businesses to be on the same pay scales as a multinational operator.

The other big costs are rents, with a large proportion of landlords either refusing to engage with tenants on rent reductions or imposing upwardonly rent reviews, and local authority

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

The Retail News Interview

The Carry Out off licence group has performed very well over the last number of years, leading to a growth in store numbers of almost 20%.

rates. What do you think can be done to alleviate the burden on retailers?

I think it’s imperative that landlords are approached in a professional manner when a retailer is looking for a rent reduction. The fact of the matter is that a retailer can only afford a certain amount on rent in order to remain profitable. Remember, it is no good to the landlord if a retailer cannot pay the rent.

I feel it is vital that the Government address the ‘upward only’ rent issue because I believe the current model will shut down more businesses. Rates are also an issue.

Many stores have experienced a large drop in turnover over the last five to six years but the ‘rates’ figure has remained similar. A system needs to be developed where a drop in performance in a business leads to a reduction in rates.

There has been a lot of debate on the issue of below cost selling and calls for a Grocery Code of Practice to regulate supplier-retailer relationships. As someone with extensive experience of the grocery trade, do you feel there is a need for a statutory code of practice and an ombudsman? Why? Under-cost selling has been evident in the market for many years. This is a completely immoral and unethical treatment of small and medium sized businesses that most likely do not have the resources to match below cost selling prices. The Christmas market period was an example where vegetables were sold for as little as 5 cents: similar products are now selling for well over a euro. The damage that ensues from this type of activity is an unfair perception that the shop is ripping the consumer off.

There is a claim that the Government want Ireland to be the best country for small and medium sized businesses to do business in.

When you have small and medium businesses operating in the kind of market that we experienced last December, something has to change if

they are to have any chance of success.

All markets need some type of regulation and fair playing field; otherwise, you will be left with a small number of players in the market, which is not good for the consumer in the long term. We don’t want the grocery trade to be like the banking sector.

Lack of competition is not healthy for trade. It is crucial that the Government introduce an environment where any large retailers cannot misuse product pricing to get consumers in store. This stamps out the type of activity we have witnessed in blatant under-cost selling efforts.

“The Government needs to review the impact of the current tax system in the minds of the consumer and explore the impact of a reduction in direct taxation. The amount of disposable income would have a major impact on consumer confidence, which will most likely lead to an increase in spending, which is what we need to kick-start the economy.”

Minister Reilly’s proposal to introduce plain packaging for tobacco products in Ireland will probably have many unintended consequences for retailers. How do you think plain packaging will directly impact on the retail trade in Ireland?

Essentially, there is no evidence that this policy actually works, and dissuades anyone from taking up smoking or encourages them to stop.

In Australia, there was a small drop in the value of cigarette sales, which

is likely accounted for by the impact of recession, and the fact that people bought the same volume of cigarettes, only the cheaper varieties. They became less brand loyal when branding played less of a factor: they did not stop smoking!

A major concern is that this initiative plays into the hands of those counterfeiting cigarettes on the black market, and makes it a lot easier for them. It is never wise with an issue like this to facilitate unregulated selling.

Through the proper retail channels, you can manage who buys cigarettes and when, and you can control price and availability. Forcing the market into illegal retail channels is a dangerous move on many levels, not least the lost Government revenue.

Government focus would be best applied to educating children about the dangers of smoking, and putting some funding into sports for young people and leisure amenities and other opportunities. The act of smoking appears cool to bored teenagers with nothing better to do. They are not brand loyal, so the look of the pack has little influence! What they need is proper education on the stark reality of dying young on account of smoking, plus facilities to foster other interests in life, like being cool by being a top sportsperson or musician or computer expert!

Creating a ‘nanny state’ is not the answer: educating people is! Look how effective the stark road safety and drink driving campaigns have been!

Even cigarette price increases have been seen to reduce the amount people smoke, although I am told that just one cigarette a day is too much. Following this line of thinking, medics would advise that food with high salt content, too much sugar, bad fats, artificial colouring etc. should all be plain packaged, so where does it stop?

There is a better solution to addressing the health issues around smoking, and it is not by facilitating supply on the black economy and by doing away with the legitimate retail channels.

What are your thoughts on the slippery slope argument, that it is tobacco today and potentially alcohol tomorrow? Don’t you believe this will cast a lot of doubt on Ireland as a place to do business?

Based on how the Minister has acted on the tobacco issue, nothing would surprise me. I believe there has to be balance in everything we do but I am concerned what the end game might actually be.

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

Shelf Life In terms of your own business, how has Barry Group managed to perform so strongly despite the recession?

Barry Group as a company has performed well over the last number of years in what was a most difficult trading environment, mainly down to the hard work and commitment of our team. We are fortunate to have a great team who are open to all the change that was required and as a team we kept ‘upping the bar’ and still continue to do so. We have close relationships with our customers and put a lot of effort into providing the best possible service in all aspects of their business. We put a lot of effort into ensuring that our brands enable our customers to provide a quality service for the consumer at great value for money. This is vital in the current environment.

What does Barry Group offer clients that sets it apart from competitors?

We operate in a very crowded market, where it is so important to have the edge over your competitors. We have a great team who are prepared to go the extra mile for our customers on an ongoing basis. Part of our culture is to do everything possible to ensure that we exceed our customers’ expectations.

We believe that the offering to our customer is very competitive in order to enable them to be competitive and make a fair profit for their efforts.

As a team, we strive to be the best at what we do. This mind-set ensures that we keep challenging both ourselves and our processes to ensure that the offering to our customer is to the very highest of standard. This enables them to give the consumer the service that they deserve. The size of our business enables us to be close to our customer and on the other hand, big enough to buy at great prices to ensure that we give our customers great value.

How has Costcutter performed?

Costcutter has performed in a satisfactory manner, assisting Barry Group to grow its business over a most difficult trading period. We expect our recruitment for this year to be double digit growth over last year.

What about Carry Out? Carry Out has performed very well over the last number of years. The brand extension has worked very strongly, leading to a growth in store numbers of almost 20%. A similar growth is expected this year. This is a true market leader in the industry.

How do you see your business developing over the coming months and years?

I am very excited about the opportunities for Barry Group in the future, due to our ongoing fine tuning of how we run our business. We have just finished our latest upgrade to both the approach and execution of our business plans. We have identified many areas of new opportunity, which we look forward to rolling out over the next 12 months.

Considering the growth of private label in the last few years, can brands be brought back to a position of real strength in the market?

I think that brands will always have a very important place in the Irish grocery market but I do see more growth in private label. This view is held mainly due to the lack of disposable income and the impact of the discounters.

How important is the relationship with retailers to Barry Group?

Barry Group would be of the view that a positive relationship with customers is a vital ingredient to any successful business. We have many programs in place to ensure that the customer is front of mind at all times.

How important is innovation and new product development to the Barry Group?

Innovation is very important for all brands to ensure that they remain current and relevant. We have an ongoing approach to innovation in all aspects of our business.

There are many examples of innovation, from our development of chilled distribution to our range extension of Carry Out to include Carry Out Express, from our many exclusive brands, such as Apple Tree Cider and Mission Sudd wine, to our current focus on the fresh food offering with the Costcutter brand. It is vital to keep innovation at the top of the agenda.

With our new Costcutter chill distribution, the company deployed a team of 12 members for 18 months to develop the project. An investment of over €1m has been injected into the project, delivering a best in class IT system, as well as a host of other supports to ensure the success of the project.

This new retail IT system called BEACON has also been specially developed to support Costcutter’s chill distribution, with the retail software facilitating automated ordering, and giving store owners and managers

Jim Barry: “Barry Group as a company has performed well over the last number of years in what was a most difficult trading environment, mainly down to the hard work and commitment of our team.”

increased business intelligence on sales trends and pricing when placing orders with Barry Group.

You recently announced the launch of a nationwide chilled distribution system. How has this progressed?

We are very pleased with the roll out of our chilled distribution solution.

We are currently almost six months into what is an 18-month roll-out plan. The chilled distribution solution enhances our offering to our customers, increasing our capability in fresh produce, which is a vital part of our strategy to further enhance the Costcutter offering.

The chilled distribution solution is also proving to be a very exciting solution for our many independent retail customers, enabling them to strengthen their fresh offering.

A major benefit from chilled distribution has been our development of an own label offering, which is improving our value perception in this area.

What will it mean for Barry Group and its retailers?

Chilled distribution improves the capability of our customers to satisfy the needs of the consumer, as well as enhancing the value perception of Costcutter. This is a vital element of our strategy in providing value for money with a pleasant shopping experience. For me, chilled distribution is the final piece of the jigsaw.

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

Ice Cream

Ice Age Now is the time to stock up on the leading ice cream brands, as Ireland’s love affair with ice cream shows no signs of abating.

DESPITE our generally changeable weather, Irish people remain amongst the world’s biggest consumers of ice cream. Last summer’s warm weather contributed to a busy year of sales, with the ice cream market in Ireland estimated to be worth in the region of €109m.

According to the latest report into the ice cream market in Ireland by Euromonitor, Unilever continued to be the overwhelming leader in the category in 2013. The brand continues to dominate due to the ongoing success of HB branded products and also the Ben & Jerry’s brands. The HB Magnum brand continued to be the number

one selling ice cream brand in 2013 as it is perceived as a luxury indulgent product. It also benefited from the company’s strong emphasis on new product development and was able to leverage on the marketing for its new Magnum Infinity brand.

While impulse ice cream sales are strongest during the summer months, we are also seeing all year round ice cream consumption as ice cream is about occasions too. Many consumers have an indulgent ‘nine o’clock moment’ on the couch or consume it as part of a ‘Big Night In’ with friends or family.

With this in mind, retailers should stock a range of packs and tubs in a

secondary freezer nearer the back of the store or keep it at the bottom of a typical ‘maxivision’ freezer. The range should not compete with impulse lines and should also include price-markedpacks, as they offer consumers visible value for money and reassurance that they are getting a good deal, particularly when it comes to branded products, which consumers know, trust and have an emotional connection with.

Unilever Unilever, Ireland’s number one ice cream manufacturer (Source: Total value share, Nielsen MAT, February 2014), is launching an innovative range of NPD under its market-leading brands Magnum, Ben & Jerry’s, HB, Cornetto, Carte D’Or, Solero and Calippo.

Available since March, the new products tap into key consumer and category trends, such as the growth seen in frozen yogurt, luxury desserts,

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Ice Cream handheld formats and the trend towards consuming ice cream as a snack, to spearhead growth in the €109m ice cream category (Source: Total Value Share, Nielsen MAT, February 2014).

“2014 is set to be another outstanding year for Unilever ice cream, with our fantastic summer NPD that maximises opportunities for category growth by delivering new products in line with key category and consumer trends, generating strong sales for retailers,” enthuses Noel

Magnum with Marc de Champagne launches to celebrate the brand’s 25th birthday, featuring Magnum’s first ever chocolate coating dipped in silver with a holographic wrapper.

Clarke, Brand Building Director for Ice Cream at Unilever UK & Ireland.

“As the number one ice cream manufacturer, with a 74.7% total value share and over €81m in value sales (Source: Total Value Share, Nielsen MAT, February 2014), we continue to offer retailers exciting profit

2013).

Magnum with Marc de Champagne launches to celebrate the brand’s 25th birthday. Featuring Magnum’s first ever chocolate coating dipped in silver with a holographic wrapper, the launch offers consumers another new product from an ice cream brand they recognise for its luxurious chocolate ice cream credentials.

Magnum with Marc de Champagne multipacks have an In Home RRP Carte D’Or Gelateria enables consumers of €3.71. Magnum with Marc de to bring the Italian gelato experience into Champagne Out Of Home has an RRP their homes. of €1.87.

Ben and Jerry’s is the number one opportunities in 2014,” he added. “By brand in the Luxury Dessert Ice Cream investing in an array of sector, worth over €8m, NPD from our leading with a 7% share of the brands –Ben & Jerry’s, total ice cream category Magnum, Carte D’Or, (Source: Total Value Cornetto, HB, Solero Sales, Nielsen MAT, and Calippo – we are December 2013). confident that our Available in Ben & portfolio will continue Jerry’s signature 500ml to drive the category tub format, Ben & Jerry’s for summer 2014. We Greek Style Frozen are also tremendously Yogurt comes in three excited for the return flavours; Strawberry of HB Hazelbrook Shortcake, Vanilla Farm on TV. This Honey Caramel and iconic brand will be Raspberry Chocolatey back on our screens in Chunk, and will take time to help capture advantage of the growing those important Easter Frozen Yogurt market sales.” with a predicted value of Magnum is the €2.7m in 2014 (Source: number one luxury Datamonitor Ice Cream handheld ice cream Market in Ireland, brand in Ireland December 2010).

(Source: MA Volume Ben & Jerry’s Greek Sales, Nielsen, Sep/Oct Style Frozen Yogurt will 2013) worth over €15 Avaliable for a limited time only also launch in 150ml million with a 14.8% this summer, Solero Mojito is ‘mini’ tub formats, share of the total ice inspired by one of the most enabling retailers to tap cream category (Source: famous cocktails in the world and enriched with real pieces of into the trend for mini Total Value Sales, snacking formats and lemon, lime, mint and rum.

Nielsen, December

Available in Ben & Jerry’s signature 500ml tub format, Ben & Jerry’s Greek Style Frozen Yogurt comes in three flavours; Strawberry Shortcake, Vanilla Honey Caramel and Raspberry Chocolatey Chunk.

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

Ice Cream

New Cornetto Choc ‘n’ Ball combines delicious ice cream, vanilla and milk chocolate pieces covered in milk chocolate and almond slivers with a crispy waffle cone.

small, portion controlled treats.

Ben & Jerry’s Greek 500ml has an RRP of €5.99 and Ben & Jerry’s Greek 150ml has an RRP of €2.72.

Carte D’Or has taken a step further in creating the ultimate continental ice cream moment, now the Gelateria experience can be taken home!

Launching in three indulgent flavours – Eton Mess, Chocolate Inspiration and Salted Caramel - Carte D’Or Gelateria enables consumers to bring the Italian gelato experience into their homes by offering unique, ‘six peak’ ice cream products. Each variant combines smooth ice cream, a velvety sauce and a crunchy topping to create a perfect standalone dessert.

Set to establish Carte D’Or as the ‘ultimate dessert’, Carte D’Or Gelateria will come in 900ml tub format and has an RRP of €4.84.

Three new flavours - Bubblegum, Haribo and Greek Yoghurt – will launch into the Carte D’Or Scooping range for 2014. Featuring the six peak architecture typical to authentic Italian ice cream, the new flavours will join the 11-strong existing range, which includes popular variants such as Vanilla Chocolate and Cookies and Mint Choc Chip.

When it comes to cones, Cornetto Ireland’s number one filled cones brand (Source: Nielsen MAT Volume Sales, Sept/Oct 2013) - has it covered. The Cornetto range now comprises: three multipacks of the best-selling Cornetto favourites - Classico, Strawberry and Mint - at a great value-for-money RRP of €2.50 for four cones; a delicious

revamped Premium range inspired by brand is going back on TV. Ireland’s popular sweet snacks – Cheesecake favourite ice cream, enjoyed since Glory, Vanilla Shake and Cookie, at an 1926, HB Hazelbrook Farm returns to RRP of €3.85 for a pack of four. Plus, TV screens just in time for Easter. As the dinky Cornetto Minis range – in the number one brand in the dessert two delicious flavour combinations sector (Source: Neilsen Scantrack - mini cones ideal for that family sofaROI Volume Sales MAT, November 3, moment, priced at an RRP of €3.70 for 2013), HB Hazelbrook Farm stands six cones. for quality ice cream. Made using 50% Cornetto Choc ‘n’ Ball is launching fresh whole milk, the entire range is exclusively into the Out of Home free from artificial colour and flavour. channel, bringing exciting innovation It can be enjoyed on its own or as an to the much loved Cornetto brand. accompaniment to other desserts, Combining delicious ice cream, vanilla making it a great choice for the whole and milk chocolate pieces covered in family. milk chocolate and almond slivers HB Hazelbrook Farm comes in a with a crispy waffle cone, Cornetto variety of flavours and formats and Choc ‘n’ Ball is set to become the includes the number one seller in the ‘ultimate manly ice cream’, by catering take home ice cream market - Vanilla specifically for male consumers seeking 568ml pint brick. HB Hazelbrook Farm a substantial snack offering. Cornetto 568ml pint brick has an RRP of €2.13, Choc ‘n’ Ball has an RRP of €1.80 and 900ml tubs have an RRP of €3.50 and benefits from all of the great taste credentials of Cornetto’s 90ml cones, but in a larger 160ml format and a ‘manlier’ positioning.

New Calippo Bubblegum builds on the popular Wall’s Kids range and brings an exciting new flavour from a brand consumers know and love to the children’s handheld sector ahead of the core summer ice cream season.

Calippo Bubblegum has an RRP of €1.10.

Inspired by one of the most famous cocktails in the world and enriched with real pieces 2014 is set to be a big year for HB Hazelbrook Farm as the brand is going of lemon, lime, mint and rum, Solero back on TV. Mojito launches specifically to target the adult ice cream market in time for the summer impulse season. Avaliable the 1L bricks’ RRP is €3.75. for a limited time only this summer, Solero Mojito has an Out of Home RRP Kerrymaid of €1.56 and an In Home RRP of €3.75 Kerrymaid has conducted independent per pack of three. research into the frozen desserts Following the success of the In market, and compiled the findings in Home launch in 2013, HB Ireland’s its Share Good Times Report. Whether number one ice cream brand from served after a meal, as an afternoon Unilever UK (Source: IRI data Value snack or an impulsive treat, ice cream Sales, December 2013) is adding its centred desserts can drive sales famous Funny Feet ice cream to its Out during different parts of the day and of Home offering this year. encourage impulse purchases from In line with the existing product, customers of all ages. the iconic foot shape, strawberry Kerrymaid Angelito Ice Cream Mix flavour ice cream and pink colour has been widely recognised and loved from the 1980s remain, along with the by consumers for more than 40 years. recognisable red and yellow colour cues As part of the Kerrymaid portfolio, on the original packaging, which has operators can be assured of the best been updated with a modern design. quality and product innovation from HB’s Funny Feet Out of Home has an a trusted company, renowned for its RRP of €0.89. dairy heritage. Its popularity and 2014 is also going to be a big history make it a powerful option to year for HB Hazelbrook Farm as the have on many operators’ menus.

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

Ice Cream

Kerrymaid Angelito Ice Cream Mix contains low fat and low saturated fat content.

Part of the reason why vendors serve Kerrymaid Angelito Ice Cream Mix is the return it gives them on investment, offering the highest number of servings per litre. Additionally, Kerrymaid Angelito Ice

remain stable, and 90% of consumers recently surveyed said they would eat the same or more ice cream sundaes in the next 12 months. So, with good availability and strong marketing, innovative operators can capitalise on this growing trend.

Kerrymaid Angelito offers a range of POS to allow ice cream operators to shout about their offer. For example, swing signs, flags, bunting, large six-feet cones and posters can all stimulate spontaneous purchases. For more information, visit www.kerrymaid.co.uk,

53% of desserts consumed are ice cream centred and are popular across all ages from young children to adults, according to Kerrymaid’s research.

Kerrymaid Angelito Ice Cream Mix has been widely recognised and loved by consumers for more than 40 years.

Cream Mix has a low fat and saturated fat content.

The overall outlook remains positive, with the market continuing to

or call 1850 924 632. For seasonal recipe ideas, commercial kitchen knowhow and foodservice marketing tips, follow @KerrymaidDairy and join in the Twitter conversation.

R&R What’s the best way to eat an Oreo? Twist it, lick it, dunk it, or eat it all in one?

R&R are introducing the coolest way to enjoy an Oreo this season, with the launch of the brand new Oreo Ice Cream Sandwich.

Set to surprise and delight Oreo fans across the nation, the new Oreo Ice Cream Sandwich features a generous wedge of smooth and creamy vanilla ice cream, scattered with Part of the reason why vendors serve Kerrymaid Angelito Ice Cream Oreo cookie crumbs, and Mix is the return it gives them on layered between two investment. unique Oreo ice cream

The new Oreo Ice Cream Sandwich features a generous wedge of smooth and creamy vanilla ice cream, scattered with Oreo cookie crumbs, and layered between two unique Oreo ice cream biscuits.

biscuits Oreo first went on sale over 100 years ago, and its growing popularity today has led to it becoming the world’s number one biscuit brand. With nine out of 10 households enjoying Oreo biscuits, the Oreo Sandwich Ice Cream will be a new refreshing way to enjoy the taste of the famous biscuit.

The new Oreo Ice Cream Sandwich joins the Oreo ice cream cones, a deliciously Oreo chocolate-flavoured cone with vanilla ice cream and crushed pieces of Oreo biscuit, and Oreo Ice Cream tub, which is filled to the brim with vanilla ice creamed mixed with chunky pieces of Oreo.

Irish Cone and Wafer Despite our temperate climate and some of the worst summers on record over the years, Ireland remains one of the largest

consumers of ice cream in the world.

And the Irish consumer loves nothing better than to eat their ice cream from cones or sandwiched between wafers.

With the expectation of warmer weather and brighter evenings ahead, now is the ideal time to stock up on your cone and wafer products to capitalise on this great sales opportunity.

Since the company was founded in 1944, Donegalbased company, Irish Cone and Wafer has had a long affiliation with Ireland’s ice cream consumers and is the largest manufacturer of cone and wafer products in Ireland. The company produces a wide range of products under the Cool Wafers, Cup and Cones branding as well as Wrapped Wafers brands. The company also offers bulk catering cones under the Superb Cones brand to retailers and ice cream vendors who operate ice cream machines.

In addition to the eyecatching pack designs, Irish Cone & Wafer has a wide range of Point of Sale units and stands on which to display their products.

Largo Foods manages all sales and distribution of Irish Cone and Wafer products and they can be contacted on (01) 8350611.

Since the company was founded in 1944, Donegal-based Irish Cone and Wafer has been meeting the needs of Ireland’s ice cream consumers, including its Cool Cups, Cones and Wafers.

Share Good Times With Ireland’s Favourite Ice-Cream Mix

To drive sales in your business you can’t do better than Kerrymaid Angelito Ice Cream Mix. With the highest servings per litre, you make the maximum profit margin and satisfy your customers with the delicious taste families love.

With a delicious creamy taste and dairy heritage Kerrymaid Angelito is widely recognised and loved by consumers for over 40 years.

To create the complete dessert solution for your customers, call Martin Food Equipment today!

N.I. Tel: 0800 783 9859 R.O.I. Callsave: 1850 30 3636 www.martinfoodequip.com

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

Shop Profile

Pictured are (l-r): staff members Tricia Oates and Christine McVeigh with owner Niall Smith and manager, Catherine Smith.

Gala’s Local Focus Pays Off Niall Smith’s Gala store in Newtownforbes, Co. Longford, is a perfect example of how Gala continues to meet the local needs of shoppers.

A GOOD retailer is always very busy, but it is their commitment to their customers’ satisfaction that distinguishes them more than anything else. Niall Smith has been demonstrating that commitment to the people of Newtownforbes in Co. Longford for 15 years.

“When I opened the shop here, we initially traded as a Checkout store,” Niall recalls. “The shop was smaller at that time than it is now and the Checkout format suited the shop and its customers very well. I was very happy trading under the Checkout logo and I had a very good working relationship with the group and my local wholesaler, McCarrick Brothers in Longford.”

A decade ago, however, Niall joined the Gala Group and he hasn’t looked back since. “At that time I had already established an excellent working relationship through the Checkout format,” he says, “but when I joined Gala, the shop was enlarged and the Gala image proved more suitable than Checkout.”

A Real Partnership Niall describes working with Gala as a real partnership. “The group has established a strong national identity around the idea of ‘your local market’,” he explains. “For the Gala group, it is the local shop that is the focus of the whole group. Gala demonstrates the same commitment to my shop and my

needs that I give my customers. As an independent retailer, that is what I want from any partner I work with.”

December 2013 saw Niall incorporating the latest Gala image into his shop. The graphics and colour scheme were updated, a sit-down area was introduced and thanks to some very creative design techniques from the store development team, the grocery offering was actually increased without the need to increase the floor space in the shop.

The L-shape layout of the shop’s footprint does not allow for significant amounts of natural light to penetrate the rear of the shop but the lighting system creates a bright interior throughout. A low shelf height further creates a feeling of space, the excellent design making the store feel larger than it actually is.

“Everyone in the Gala group was very hands-on during the latest project,” the store owner reveals. “Although it was not a huge redevelopment, I still received excellent support. Darragh Sampson, my Regional Manager, worked as hard on

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Shop Profile

Store owners Catherine and Niall Smith, pictured outside their Gala store in Newtownforbes, Co. Longford.

the project as I did. Whether or not you are opening a shop, redeveloping it, or just running it day to day, Gala is always there as another pair of eyes and another pair of hands to help the shop maintain the highest standards.”

Local Repeat Customers The majority of Niall’s customers are local repeat customers. Like consumers around the country, their purchasing patterns have been changed by events of recent years. The Gala group offers a 13-cycle promotional offer per year, which allows Niall to pick and choose the products to stock, ensuring his customers get the value for money they need from their local market.

According to Niall, his customers are well aware of which deals are on and hitting those KVIs is a key part of his strategy, given that Longford is only a short drive and it is heavily populated with multiple grocery outlets. He tells Retail News, “As a local shop, I need to give my customers convenience and a local connection, but I also have to give them value for money as well. Working with the Gala group, I am able to do that and still maintain an acceptable margin for the shop.”

Fresh food is another key area for the shop, the owner reveals. “During the boom years, we carried a dinner offering, but there is no demand for that any more,” he notes. “Ben McGinn and the Gala Fresh Food team are in constant contact with the shop. By refocusing food to go on areas such as traditional sandwich offerings and the Baker’s Corner element, we have kept the fresh food offering in step with what my customers want. The Baker’s Corner, in particular, is performing very well this year.”

if you do well, but more importantly, they are another way to make sure that standards are being maintained in the shop,” Niall admits. “My staff and I always benefit from participating in the awards and it helps make sure my customers always get the best experience.”

Niall’s commitment to his community extends beyond the shop floor. He supports the local GAA football and hurling clubs, the local National School and the Tidy Towns competition.

Niall and the Gala group share the same philosophy on how to put the ‘local’ in a local shop: hard work and commitment to customers. There are no shortcuts and it is the partnership that Niall, his staff and Gala have created and the hard work that they put in every day that really is the secret to their success.

Training & Retaining Staff Training and retaining good staff are vital to any store’s success. All of Niall’s staff have been with the shop for at least six years. In that time, they have built up an excellent team spirit. During that period, Gala’s online training system has allowed for continual development, while reducing the need to lose staff hours to training time.

Niall Smith With a decade’s Newtownforbes, Co. Longford experience of working with Gala, Niall and his staff are 1,750 square feet very familiar with the Gala Six full time B.E.S.T Awards. The shop consistently performs well 07:30-20:00, Monday-Sunday in the Awards and it is a challenge that Niall and his Gala Enquiries 045 910066 staff relish. “The Awards are Gala Retail Services: Website: www.gala.ie an opportunity to feel good

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

Irish Grocers Benevolent Fund

Appealing To Your Better Nature Willie O’Byrne, Managing Director, BWG Foods, is the new President of Appeals for the Irish Grocers Benevolent Fund. He explains why the Fund is now more important than ever, how the Fund needs some new blood and how the Fund is modernising for the 21st century.

WHEN Willie O’Byrne was asked to become President of Appeals for the Irish Grocers Benevolent Fund, he took some time to make up his mind on the move. It wasn’t that the BWG Foods Managing Director had anything other than huge respect for the Fund and its work to improve the lot of families from the grocery trade who have fallen on hard times. Rather, the softly spoken MD was worried that fund-raising wasn’t “my natural habitat”.

“I was very honoured to be asked, because there’s a very prestigious roll-call of people who have held this position over the years,” he stresses.

“In the context of our industry, I would be following in the footsteps of giants.

“I had to be sure I could do justice to the responsibility that comes with the position, given that I don’t have a track record in fund raising,” he admits. “But at the end of the day, I knew that with determination and the right attitude, I could do the IGBF some service and tap

into my own network and that of my company on its behalf.”

While confessing that the idea of asking his trade colleagues for donations “doesn’t come naturally to me”, Willie knows it is an essential part of the job: “When you get to hear the stories of people helped and the impact the aid has had on their spirits, it puts the steel in your back that you need to put the hand out and say, ‘I’m asking on behalf of people who would never dream of putting out their own hand for help’.”

Juggling the year-long role of President of Appeals with the day-job has been, he confesses, “a challenge” so far.

“The rhythm of the business year

in BWG is such that the first quarter is always particularly busy,” he reveals. “We pride ourselves on retailer communications and Q1 is when we host all our SPAR and EUROSPAR guilds, MACE retailer meetings, the XL retailer forum, and a variety of awards nights, so there are a lot of set-piece formal communication events where I need to be on top of my game. It is also traditionally the quarter in which the President of Appeals’ letter of appeal is issued, an important aspect of the fund raising year. I needed to give that a lot of attention, and there was also the Cork and Limerick IGBF Balls to attend. So there was a little bit of juggling, but to be fair, the Balls tend to take place over the weekend so they

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Irish Grocers Benevolent Fund don’t impact on company time.”

Eating With The Enemy While the events eat into his own down-time, the affable MD feels that they have a secondary benefit beyond the money they raise for the IGBF. “There are very few places where competitors in the industry get to break bread together,” he smiles. “Just like that celebrated football match between the Germans and the English in No Man’s Land during the first World War, we park our differences at these functions. Ultimately, what separates us is dwarfed by what we have in common. The natural competitive nature of business ensures that cutthroat rivalry resumes as soon as we leave, but it is nice to have these oases where the industry, including suppliers, wholesalers and retailers, get together, and raise a few euro for a very worthy cause.”

And so we come to the crux of the problem facing the IGBF, as revealed in these very pages last November, when we spoke to IGBF Development Director, Des Redmond: current donations come to approximately €450,000 per year, while grants to more than 300 families it helps nationwide amount to €650,000.

“For the last few years, the IGBF incomings have not covered its outgoings, which has depleted reserves,” Willie explains. “Ultimately, that is unsustainable. Unless we can grow donations to match grants made, eventually we will have to limit the number of families in receipt of help or reduce the grant they receive. What I’m trying to do on my watch is to make sure we have the funds to match the need.”

The work of the IGBF is, if anything, even more important in 2014 than when it was founded over three decades ago, according to Willie.

“The recession of the last five or six years has taken a heavy toll,” he states. “If you are a sole trader and your business fails, there is little or no safety net. Your access to social welfare

“When you get to hear the stories of people helped and the impact the aid has had on their spirits, it puts the steel in your back that you need to put the hand out and say, ‘I’m asking on behalf of people who would never dream of putting out their own hand for help’.” is very limited, so it’s a lonely and scary place to be, usually compounded by the debts of the business.”

It is not just sole traders who have been affected, however. “There has also been a significant consolidation within the industry, particularly on the supply side,” he explains. “When you look at the plethora of suppliers who have amalgamated in the last 20 years, there has been a huge reduction in the number of trading enterprises. Less companies inevitably reduce donations to the fund as the supplier community have been a traditional mainstay for the IGBF. And that consolidation has ironically grown demand, even as it has challenged fund raising, because so many jobs have been lost. Not all of these people have managed to re-invent themselves and get going again in the

workforce, and our discreet assistance has been greatly appreciated,” Willie says.

Corporate Social Responsibility So how do you convince companies to dig deep and donate to the IGBF when they all have Corporate Social Responsibility programmes where they are already aligned to many worthy charities? The answer, according to Willie, is that the IGBF shouldn’t be seen as an ‘either/or’ conflict, but rather a ‘both/and’ opportunity.

“I don’t want to compete for funds earmarked for the Make A Wish Foundation or Cancer Research,” he says. “My appeal is different. This is about our industry looking out for and looking after our own. There is no publicity, no profile, no intangible dividend for donor companies or individual retailers. It is not about the size of the donation; the act of giving is a tremendous gesture of solidarity with ex-colleagues who have fallen on hard times. So far, I’ve been overwhelmed by some of the responses and genuinely touched by the generosity of suppliers, service providers and retailers. I’m hopeful that we will get to where we need to be.”

The whole idea of CSR has grown in importance over the last decade; rightly so, according to the BWG boss. “Almost every company is conscious today of its culture and value set,” he muses. “They are looking at the interdependency of the whole economic system, whereby your employees and your suppliers are also your customers. It is good business and good economics to see the big picture. Most companies talk about connecting with community, about people and respect: if you want to put any flesh on those bones, you have to look at how you are responding to those in need within our own industry.”

Broadening Support The President of Appeals is at pains not to abuse his position with BWG Foods to put pressure on its supplier base: “My day job gives me access

About the Irish Grocers Benevolent Fund The Irish Grocers Benevolent Fund (IGBF), founded over 30 years ago,

by Tim Nolan and the late Gerry Duffy, is a national registered charity assisting people in the retail, wholesale and supplier trade sectors. The objective of the Fund is to provide financial relief for persons in need who have been involved in

these trade sectors.

For over 30 years, enormous assistance has been provided to relieve hardship amongst unemployed and retired members and their spouses, who have fallen on difficult times because of ill health or bereavement.

Above all else, the IGBF are committed to the

improvement in the lives of our colleagues. Their mission is to enrich their lives by engaging with and involving as many colleagues as possible in raising much needed funds to meet such needs and maintain the long term viability of the Fund.

The charity currently assists over 300 families /

individuals monthly and will contribute over €650,000 annually on welfare support without any Governmental funding. The breadth and depth of support is inclusive of annual annuities and crisis grants.

The Fund is a registered charity - No. 6577 and also a registered friendly society No. 1775F.

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Irish Grocers Benevolent Fund to an extensive network, which I am delighted to canvas on behalf of the IGBF, but I am conscious in my wording to the supplier base to stress the voluntary aspect of any donation made.”

He is keen, however, to broaden the support for the fund, particularly from new entrants to the Irish grocery market, and has written to all the active retail groups. “Families from the retail trade dominate the list of grants made, I am hopeful all the groups will make a contribution. I was in a position to directly canvas BWG’s symbol retailers and was heartened by the generosity of many of our own retailers,” he says.

In addition to the letter of appeal, the National Ball, and the Christmas lunch, the IGBF is blessed to have many regional events across the year.

“I’m very grateful for the voluntary service from people who willingly and generously sit on regional committees, organise events, and raise money for the Fund”, Willie says. “All the money ultimately gets pumped back into the regions so the money stays close to where it was raised. In addition, a lot of the referrals tend to come from those regional committees because they are on the ground and get to hear of local situations where somebody is not doing so well or has ended up in a bad situation.”

A Discreet Service The President of Appeals stresses that the IGBF will remain “a discreet service” which will never use the testimonials of beneficiaries to market itself. Such a move, he feels “would be anathema to the values of the IGBF”.

He does, however, believe that the Fund needs to move with the times, look to attract new blood into the active volunteer group and be open to new ways to raise money from a wider donor base. “You need to know that the baton is getting passed on to a new

“As trustees, we cannot take the kind of ballsy, entrepreneurial decisions that you can make in business, where you can back seven big ideas in the hope that three will come through and one will win big. So that does constrain you a little, but I think the Fund and its organisation is modernising and opening itself up to new ideas.” generation in our trade. We need to work on improving awareness of the IGBF across the industry, particularly amongst younger people working in it, and make sure there are enough people coming into the IGBF to ensure its continuity and active presence as a force for good for many years to come.”

Balls and golf outings have provided an enduring traditional source of income. A great example of something different is the upcoming IGBF Midsummers Day at Tayto Park,

Forthcoming Events May 20 IGBF North East Region Golf Outing

Rossapenna Golf Resort.

May 22 IGBF Dublin Region Golf Outing

Palmerstown House G.C.

June 21 IGBF Midsummers Family Day

Tayto Park.

June 25 IGBF Southern Region Golf Outing

Faithlegg G.C.

July 17 Musgrave Golf Outing

Mount Juliet G.C.

Oct 18 IGBF Presidents Ball

Shelbourne Hotel.

Dec 5

Doubletree Hotel.

IGBF Christmas Lunch

Details of all forthcoming events and contact details are available at www.igbf.ie

Ashbourne, Co. Meath, on June 21.

Thanks to the generosity of Ray Coyle of Largo Foods, the IGBF have been allocated 1,000 Family Tickets at a substantial discount.

“This allows us to give value to those who buy the tickets but still deliver a significant contribution to the Fund,” Willie notes. “It will also help raise awareness because we are broadening our base. We want everyone who comes along to go home, knowing who the IGBF is and what it is about.”

Re-Energising the IGBF The President Of Appeals credits recently appointed IGBF Development Director, Des Redmond with reenergising the Fund for the 21st Century, with its new logo and new website (www.igbf.ie). However, he accepts that due to its very nature, the Fund is always going to be “somewhat conservative” in how it raises money and “cannot back an even money shot”.

“When we are trusted with money donated to assist colleagues in need, it is not an option to speculate to accumulate on very radical initiatives.” he reveals. “As trustees, we cannot take the kind of ballsy, entrepreneurial decisions that you can make in business, where you can back seven big ideas in the hope that three will come through and one will win big. So that does constrain you a little, but I think the Fund and its organisation is modernising and opening itself up to new ideas.”

So at the end of his year-long tenure as President of Appeals, what would he like to have achieved?

“With my primary responsibility as President of Appeals, I would like to sign off at year’s end knowing the money raised has covered grants made,” he says simply. “Also, if there is more engagement with the IGBF from the next generation, as well as a wider awareness of the Fund and what it does, and if our fund-raising activities have continued to diversify, then I will be very happy to pass the baton on to the next President.”

It is said giving is its own reward, and Willie has found reading the correspondence the IGBF receives from those it helps a great reminder of what is really important. “The grants we give out are modest enough, with the maximum around €2,500 per year. It makes a huge difference to those families helped, and reading the Christmas cards the IGBF gets from those families brings home that fact,” he concludes. “Invariably comfort came not just from the practical assistance but from the solidarity those helped took from the fact that the industry in which they had plied their trade had not forgotten them in their hour of need.”

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Market Research

New Research System Gives FMCG Producers the Edge A powerful new market research tool is being launched in Ireland to give food and drink producers a winning edge with major retailers.

AMÁRACH Research has developed a unique market research service, allowing manufacturers access to a team of food and drink industry specialists plus a hand-picked panel of superconsumers who have a heightened level of product awareness.

Gerard O’Neill, Chairman of Amárach Research.

Amárach has joined forces with one of the UK’s leading consumer research companies - Swift Research to formulate the new package and deliver it in Ireland and Great Britain.

“This new system is dedicated to giving our clients the winning edge.

We believe it is the most comprehensive and potent research solution available in Europe,” explained Gerard O’Neill, Chairman of Amárach. “The system will prove extremely beneficial to food and drink companies who are developing new products or need assistance in attracting the attention of the major retailers.

“Our team of industry

specialists will provide valuable advice, ranging from identifying the most appropriate contacts in the retail sector to advising on marketing, packaging and brand positioning,” he continued. “Combined with the intelligent and articulate views from our elite consumer panel on individual products, we believe we will be able to provide our clients with an outstanding platform for success.”

Formidable Reputation Amárach Research has forged a formidable reputation over the last 25 years, particularly in the economic, financial and political arenas. Perhaps less well known is its success in the consumer research sector but this is surely about to change with this new product launch.

“Our consumer research service has been gaining momentum over the years and we are proud to have been selected to work with prestigious brands such as John West and Heineken,” O’Neill noted. Amárach also work with many top retailers in Ireland, as well as organisations such as Irish Hotels Federation, Licensed Vintners Association and Guaranteed Irish.

“We are further strengthened by our close links with Swift Research, who already work with top brands such as Pepsi, Mars, McCain Foods, Yoplait and Haribo,” O’Neill stressed.

“Together, we provide an irresistible solution to companies looking to do business in the retail sectors of both Ireland and the UK.” Panel Of Experts Amárach has used its considerable knowledge of the Irish business scene, identifying key specialists to form its panel of experts from the food and retail sector.

They include exbuyers, marketers, brand communication specialists, new product development executives and members of the Guaranteed Irish organisation.

They are available to consult with directly on products, strategy or development plans.

“You might have a wonderful product but unless you can gain the attention of the buyers for the major retailers, you will not succeed,” warned O’Neill.

“This panel of specialists will identify the right people to talk to and will ensure your product has all the attributes required to make its way onto the supermarket shelves.”

Products can be finetuned through their food lovers panel. “These are people who have demonstrated a passion for all things food and drink,” O’Neill stressed. “They are intelligent, articulate people who are able to give considered feedback on a product or its packaging.

“They will also be available for product testing

A researcher carrying out sniff tests at Swift Research, who have partnered with Amárach to deliver a new consumer research package.

at home and clients will be able to observe them shopping and making their selections, right through to using the products to cook a meal for their families.”

Meaningful Insights O’Neill believes that this type of research provides a meaningful insight for food manufacturers and helps them improve their products to give them greater appeal to consumers. The food lovers panel is also available for on-line qualitative research, providing a fast and cost effective research solution.

“Our panel is ready and waiting and available for those situations where a fast result is required. We can consult our panel overnight and have results delivered to the client the next morning,” the Chairman boasted. “It’s not a substitute for full service market research but it is aimed at fulfilling a particular need, for example, during the product development process, where testing is required before moving to the next stage.”

For more information, see www.amarach.com.

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Bread

Baking A Winner New innovations are fuelling growth in the bread sector.

A STAPLE of the grocery shop, bread is arguably the category that enjoys the strongest household penetration within your store. You might be forgiven that this mature category couldn’t possibly show signs of growth, but you’d be wrong. New product development and innovation is turning consumers’ heads and they’re voting with their wallets, as the bread category starts to rise once more.

Baked goods in general remained steady in value sales in 2013 with the total category reaching €550m, according to the latest report into the sector from Euromonitor. This comes after two years of declining sales for manufacturers, as they continued to lose out to private label. However, with many new innovations within this category and given a slight easing on consumer disposable income levels, there are positive signs that progress is being made, with expectant sales for 2014 likely to increase.

Euromonitor expect the baked goods market to experience a CAGR of 1% in constant value terms in the coming years. As confidence returns to the Irish economy, they predict that consumers will begin to increase their spending on discretionary items, such as added-value breads, organic cakes and reduced fat cakes, which are particularly expected to see strong growth levels.

Brennans Still fresh in the memory of some of Dublin’s citizens, it’s over half a century since Joseph Brennan began baking his now famous Brennans Family Pan. Working out of a small bakery in Fumbally Lane near St Patrick’s Cathedral, the business was built upon three key pillars – the product, the brand and strong distribution.

Brennans Family Pan is the most popular bread in Ireland.

Brennans Be Good: their new high fibre wholemeal bread with just 60 calories per slice.

BRENNANSBREAD.IE

ONLY ONE BREAD DESERVES THIS WRAPPER

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Bread

Answering the more diverse needs of certain modern Irish households, Brennans half pan range avoids waste, while still delivering freshness and taste.

These pillars are still as important and relevant to the business now as they were all those years ago.

Today, Brennans Bread is expertly baked in a state of the art bakery in Walkinstown, Dublin. And while the location may have changed, the company remains a family bakery, committed to staying true to their renowned slogan, ‘Today’s Bread Today’.

A dedication to craft, natural ingredients, fresh taste and innovation ensure that Brennans are the nation’s favourite. Wrapped in a yellow wax paper for optimum freshness, Brennans Family Pan is the most popular bread in Ireland and is just one of

The comprehensive Brennans portfolio includes Multigrain, Wholegrain and Wholemeal options.

the products that help maintain their position as the third biggest grocery brand in the country.

Another one of those products that reflect Brennans’ drive to give their customers choice and quality is their very popular half pan range.

Answering the more diverse needs of certain modern Irish households, their half pan range avoids waste, while still delivering freshness and taste.

It’s no surprise then that this range is performing very well across the country and is a well established favourite with the Irish consumer.

And while Brennans devise fresh ways to bring consumers their traditional family favourites, the company’s new product development process is bringing new and delicious breads to the market, like the recently launched Be Good, their new high fibre wholemeal bread with appreciably less calories per slice – just 60. High fibre, low fat and containing no added sugar, this is bread crafted for today’s evolving needs.

Re-enforcing the unique freshness and taste of Brennans Family Pan, their current advertising campaign highlights the fact only their bread is of the quality and standard to deserve the unmistakable Brennans wrapper. It’s a statement of confidence and one that gives their customers a reassurance in choosing Brennans breads.

“At Brennans it’s simple,” notes a company spokesperson. “We love to bake and we love to bring our unique freshness and quality to households all over the country. We’re a family bakery that understands the needs of Irish homes and consumers, and we’re going to keep answering those needs by maintaining our investment in the three pillars of our business that have supported us from the very beginning.

We look forward to lots more days of Today’s Bread Today.”

Irish Pride Irish Pride is one of the largest bakery companies in Ireland, with bakeries located in counties Wexford and Mayo. One of the key strengths of the company is its distribution network and Irish Pride partners with leading niche bakery brands including LifeFibre Co., McCambridge and Panelto to deliver a complete range of breads to stores nationwide every day.

Irish Pride Bakeries has one of the widest ranges of bread in the Irish market, ensuring that the brand has something for every consumer. The bakers at Irish Pride are continually focused on innovation and new product development and in recent months,

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Bread

Irish Pride’s new Rustic Bake range of breads are baked in a traditional style and are available in white, wholemeal and multiseed varieties.

Irish Pride’s new exciting range of Irish Pride Fresh Pittas and Wraps are handcrafted each day in Ireland to an authentic recipe.

The lighter bite...

the brand has successfully launched a number of new breads into the bread category.

The company is introducing new Irish Pride Rustic Bake range of breads.

These delicious 400g breads are baked in a traditional style and are available in white, wholemeal and multiseed varieties. They are packed full of flavour and freshness, as well as being a great source of fibre and naturally low in fat and sugar.

Irish Pride has also launched a new exciting range of Irish Pride Fresh Pittas and Wraps. The new range is unique in the marketplace as they are handcrafted each day in Ireland to an authentic recipe. The delicious new Irish Pride Fresh Pittas and Wraps are available in White and Wholemeal varieties and they can be purchased in any supermarket nationwide.

As a bakery, Irish

Only Calories per Slice

Only 100 Calories per Slimsters Square

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Bread Pride has always been renowned for its fresh, high quality, healthy breads and will continue to focus on maintaining these standards to ensure that they continue to offer the Irish consumer the best range of breads possible.

Johnston Mooney & O’Brien As Ireland’s oldest bakery, Johnston Mooney & O’Brien has a really rich heritage with Irish consumers.

Baking bread since 1835, Johnston Mooney & O’Brien have 179 years of experience in selecting high-grade flour from the finest wheat grown harvests. Over time, they have refined their recipes so that all their quality ingredients come together perfectly to make consumers’ favorite fresh-baked breads, buns and rolls.

To each of their breads, they add a unique ingredient; their long-standing heritage

Johnston Mooney & O’Brien are proud sponsors of Temple Street University Hospital, and are sponsoring Temple Street’s Women’s Mini Marathon 2014 campaign.

of crafting superior tasting baking goods. A healthy balanced diet has always been essential for living a full and active life and Johnston Mooney & O’Brien believe their baked goods play an important role in maintaining consumer health.

Johnston Mooney & O’Brien are committed to their Corporate Social Responsibility as proud sponsors of Temple Street

University Hospital. They are delighted to continue this partnership, by sponsoring Temple Street’s Women’s Mini Marathon 2014 campaign. The Flora Women’s Mini Marathon, which takes place on Bank Holiday Monday, June 2, 2014, is one of Temple Street’s largest annual fundraising campaigns and is an easy and fun way for mothers, grandmothers, aunts, sisters and friends

to raise funds for Temple Street. It is hoped that this campaign will raise €100,000 for Temple Street, funding two anaesthetic machines vital to keeping babies and children alive during theatre procedures.

The fundraising campaign is supported through a multitude of channels, including onpack, outdoor media, social media and selected press advertisements.

“Johnston, Mooney & O’Brien are delighted to continue our partnership with Temple Street by sponsoring Temple Street’s Women’s Mini Marathon 2014 campaign,” noted Johnston Mooney & O’Brien Brand and Innovation Manager, Emilia Ryan. “The vital funds raised will ensure Temple Street continues to deliver world class medical care to children across the country.”

Major Investment Programme by Cuisine de France CUISINE de France has announced a new multi-million euro strategy to position Irish retailers as leaders in fresh bakery. Its new nationwide investment programme is centred on Cuisine de France’s unique bakery offering, and includes new recipes, a re-design of the in-store experience; a Learning and Innovation Hub; and a prime-time television and digital consumer campaign called Vive les Différences .

The brand’s recipes have returned to their original French roots. New and improved recipes, pioneered by the Cuisine de France bakery team in Paris, have been developed to enhance its unique range.

The Cuisine de France Learning and Innovation Hub, located in Dublin, will provide best-in-class training for retail staff over the coming year, overseen by Cuisine de France experts in bakery, merchandising and sales.

On April 21, the brand also launched its first television and digital marketing campaign. The French themed TV advert, called ‘Vive les différences’, will feature at prime time television slots on

RTE, TV3, UTV, TG4, E4 and Sky channels. ‘Vive les différences’ will also feature digitally through YouTube, Facebook, RTE player, and the 3player.

Cuisine de France has already commenced its in-store re-design with retailer partners across the country, and expects to continue this roll-out over the coming months.

Announcing its new strategy, Peter Jackson, Managing Director, Aryzta Food Solutions Ireland, said the strategy, informed by domestic and international research, represented a bakery renaissance some 25 years after Cuisine de

France first pioneered the fresh bakery experience.

“Our new strategy is the culmination of a comprehensive review of every part of the Cuisine de France brand,” he said. “We engaged extensively with retailers and consumers. We analysed the global bakery market, benchmarking ourselves against countries like the US, UK, France and elsewhere.

The outcome is a celebration of the unique Cuisine de France offering of quality breads and pastries, premium in-store experience and leading innovation.

“We are working with our retail partners to transform the in-store fresh bakery experience. Our team has received a very positive reaction from retailers over the last few weeks.”

Jackson said the launch of its new strategy represents the start of a new approach from Cuisine de France: ‘As a category leader, we have a responsibility to set the standards for our customers in-store, every day. We are confident that our new strategy will achieve this, positioning our retail partners as leaders in fresh bakery.”

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Tobacco

Deirdre Healy, Corporate Affairs Manager (left) and Carmel Balala, Trade Marketing Manager, John Player.

Ireland: The Regulation Nation When it comes to the tobacco category, the big challenge is dealing with the constant regulatory changes. John Players’ Carmel Balala, Trade Marketing Manager, and Deirdre Healy, Corporate Affairs Manager, discuss the big issues facing the sector.

“WE don’t have a problem with regulation. Tobacco is an adult product, so it has to be regulated. But we believe that regulation needs to be balanced and evidence-based and unfortunately, what we’ve seen in Ireland is that regulation is just pulled from thin air, with no evidence brought forward to support it. When the law is brought into force, nobody looks back afterwards and asks if a certain piece of legislation worked or not.”

The speaker is Deirdre Healy, Corporate Affairs Manager with John Player, and her argument above sums up the challenges facing Ireland’s tobacco sector, which, let’s not forget, is a legitimate product, sold legally by licensed

retailers right across the country.

The issue of regulation without evidence is not confined to the current debate around Minister for Health, James Reilly TD’s proposals to introduce plain packaging on all tobacco products. Indeed, Healy cites the ban on the sale of 10-packs of cigarettes in 2007, which she describes as “an own goal by anti- tobacco lobbyists”.

“When that ban was proposed, we were asked our opinion on the matter in a Department of Health consultation: we said that a lot of people at the time smoked 10’s because they only wanted to smoke 10 per day and a lot of pensioners could only afford 10 per day. But the ban was introduced,

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Tobacco so pack sizes and prices automatically doubled overnight and consumption went up, as we predicted it would.

Sales of non-Irish duty paid cigarettes went up as well.”

Healy is urging the authorities to look sensibly at regulation prior to its introduction and also to carry out retrospective studies to ascertain if said legislation achieved its stated objectives.

“Pictorial health warnings on-pack were brought into force in February 2013, but nobody looked back to see if they stopped people smoking, and yet four months later we had the announcement of the proposal to bring in plain packs,” Healy notes. “There is no culture to examine legislation to see if it has worked.”

The Corporate Affairs Manager stresses that John Player are supportive of the Government’s objective to curb youth smoking but feel that the manner employed is the problem.

“We don’t challenge the objective,” she insists. “We are on the same page.

People who work here [at John Player] have children too and we don’t want children to smoke. But there are other ways rather than regulation for the sake of it.”

The Retail Challenge It’s not just the tobacco manufacturers who suffer with each regulatory change, however. Retailers are so often at the coal-face of regulatory changes and unfortunately, it’s their bottom line that suffers, losing out to the illicit trade.

“It is challenging from a retailer’s perspective,” admits Carmel Balala, Trade Marketing Manager. “They are selling a legitimate product and their cash margin and turnover is being eroded by non-legitimate product. All the regulation and all the hardship is coming on them in terms of trying to sell a legitimate product, not only in tobacco: they have regulation coming at them from all sides. So it is very difficult to be a retailer in Ireland and there don’t seem to be any proposals to make it easier.”

There is no over-stating the importance of the tobacco category to retailers, particularly the convenience channel, where tobacco generally delivers 30-35% of turnover.

“In terms of footfall, a tobacco shopper comes into your store more often and spends more money,” Balala explains. “To a retailer, a tobacco shopper is worth twice the value of a non-tobacco shopper over a year.

“Tobacco delivers a lot for retailers

Deirdre Healy: “We would like to see higher penalties applied to those found guilty of selling illicit cigarettes and tobacco.”

and good retailers understand how important tobacco is for their store.

We’ve often had retailers saying to us, ‘if I didn’t have tobacco, I wouldn’t open my store in the morning’. But it seems that there is a disconnect between

“We don’t challenge the objective. People who work here have children too and we don’t want children to smoke. But there are other ways rather than regulation for the sake of it.” retailing and the amount of regulation that is coming at retailers: they have regulation from the deli, the bakery, from all angles, and it’s making it difficult for them to run their business.”

The Move Towards Value The combination of stringent economic conditions and constant excise hikes in

recent years have seen a swing in the tobacco category, with more consumers than ever now choosing better value products.

“Tobacco isn’t immune to general economics,” Balala stresses. “Like any other category, as people have had less disposable income over the last few years, value products and alternatives from the standard Factory Made Cigarette (FMC) have grown.

Consumers are looking for alternatives that are cheaper.”

Value factory made cigarettes now account for over 17% of the FMC market, according to the latest figures from John Player, while fine cut tobacco, which includes Roll Your Own and Make Your Own, is growing at over 15%.

The latter category, Make Your Own, is one that didn’t exist just a few years ago, until John Player launched Make Your Own John Player Blue and JPS. Instead of rolling papers, the Make Your Own starter pack includes ready-made cigarette tubes, John Player tobacco and a tubing machine, allowing consumers to effectively create their own John Player Blue.

“Adult tobacco consumers still want to buy their preferred brands,” Balala notes. “They might want to buy John Player Blue but they want a value offering within that, so that’s why we have had to be innovative in terms of the products we brought to the market over the last couple of years, like the Make Your Own John Player Blue and JPS offerings.”

Despite the rise in value, however, Balala stresses that Irish tobacco consumers are incredibly brand loyal: “The majority of adult tobacco consumers in Ireland still buy into premium cigarettes and this remains a very important part of the tobacco industry in Ireland, accounting for 70% of the Irish tobacco market.”

The Illicit Trade Other than over-regulation, the biggest concern facing the Irish tobacco sector in recent years has been the size of the Non Irish Duty Paid market i.e. tobacco products that are smoked in Ireland but simply not bought in an Irish shop. As the legitimate tobacco products rise in price, more and more cash-strapped consumers are looking to the black market, where a pack of 20 cigarettes sells for as little as €3.20 or else they or their friends and family are cajoled into bringing tobacco back from holidays.

“You can buy John Player Blue in Portugal and Spain for €4.50, so the more you put up the price here, the

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Tobacco

John Player have innovated within the branded tobacco category with the launch of Make Your Own John Player Blue, whereby consumers can create their own John Player Blue cigarettes via ready-made cigarette tubes, John Player tobacco and a tubing machine.

more you are encouraging tobacco tourism, so you haven’t stopped people smoking: they’re just getting their tobacco somewhere else,” Healy notes.

It seems ironic that with each piece of legislation introduced, it is legitimate retailers who suffer, while black marketeers and illegal tobacco sellers thrive.

“All the new regulation that comes in has the effect of making it difficult for retailers to sell a legitimate product,” Balala admits. “We need to try to reduce the size of the black market, but it’s extremely difficult, because there isn’t the same focus, from a regulatory point of view, to help us to do that.”

John Player, along with the other Irish tobacco manufacturers, are hugely concerned by the size of the illicit trade here. Indeed, John Player took one of their sales reps off the road to work full-time with customers and Gardaí on the illicit trade.

“We’re always talking to

retailers about how we can work with them to make their lives easier, and one of the things they always come back to us with is the size of the illicit market. We have taken a sales person off the road to help us to deal with that but it’s a much bigger picture than just us: we need the support of the Government to do that,” Balala explains.

The Fines Aren’t Fine One area where dramatic changes could be made immediately is in the size of fines handed down to those convicted of illicit tobacco sales, with some fines being as little as €50.

“We would like to see higher penalties applied to those found guilty of selling illicit cigarettes and tobacco,” says Healy.

“The fines are there, but the courts are not applying them. I think it’s a societal issue that it’s seen as a ‘Robin Hood’ thing, where people are taking money off the Government for a few

fags. The fines are getting progressively higher but it’s not moving fast enough as judges are not handing down the fines available to them.”

The trade has welcomed as a step in the right direction the fact that the Revenue Commissioners have started to seize assets, such as cars, from those convicted of widespread illicit tobacco sales, while the Department of Social Welfare are moving to refuse people social welfare payments if they are found to be selling cigarettes illegally.

There have been cases where legitimate retailers were found guilty of selling illicit product, Healy admits: “We had a case two years ago that a retailer was convicted of selling illicit cigarettes, yet he was still on the tobacco register, which is ludicrous.”

However, the vast

“Packaging is not the reason why people smoke.

Otherwise, we’d have a 100% smoking rate.

It is about peer pressure, education etc.

So introducing plain packaging is not going to deal with the issue.”

majority of illicit sales are illegal sales at markets and on the street, as well as casual selling in workplaces.

Plain Speaking Minister Reilly’s proposed move to plain packaging will only exacerbate the problem, according to both Healy and Balala. The entire debate around plain packaging centres around 35% of the front of a cigarette packet, as the other 65% will be taken up with a health warning, when the European Tobacco Products Directive comes into force.

“Where is the evidence that removing our branding on this 35% will make a difference to smoking rates?” asks Deirdre Healy.

“There is no evidence to support its introduction.

The Minister failed to perform a Regulatory Impact Assessment (RIA). The whole idea of carrying out a RIA is to examine various options to meet an objective.

If the objective is to stop children smoking, you then look at all the things that can be done to achieve that objective, including youth education, further legislative controls etc. But that simply was not done.”

Healy points to the fact that in 2010, Ireland’s Department of Health made a submission to the European Commission that they were only in favour of plain packaging if such a move was mandatory for every European country, which Minister Reilly’s plan is not. The result will be that branded product, brought in from other EU countries via tobacco tourism, will still be rife in Ireland, while illicit whites will still be available with fake trade marks, made to look like genuine branded product.

“Branded cigarettes will still exist in Ireland: they just won’t be sold by legitimate retailers,” Healy states. “If plain packaging were to be introduced in Ireland but not throughout the rest of Europe, Irish people will freely travel and

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

Tobacco

bring back cigarettes from abroad.

Ryanair will do very well out of it but Irish retailers won’t.”

Australia is the only country in the world so far to introduce plain packaging for tobacco products, and their Department of Health are carrying out a study this December to assess the impact of plain packaging. It would make sense that the Department of Health in Ireland reviews the real world evidence from that study and in the meantime, they could introduce measures such as a ban on proxy purchasing, as well as developing targeted educational initiatives to curb youth smoking.

“Packaging is not the reason why people smoke,” Healy says simply.

“Otherwise, we’d have a 100% smoking rate. It is about peer pressure, education etc. So introducing plain packaging is not going to deal with the issue. We always cite the example of Germany, where there is still billboard advertising for tobacco, full and open display in shops and yet they have half the youth smoking initiation rate that we have. We look to Germany as a role model in the economic sphere, so what is wrong with looking to Germany as a role model for stopping children smoking?

“They focus on giving teenagers the life skills to say no, whether it be for smoking or drinking. I don’t know why there isn’t mandatory education in Irish schools when it comes to areas like tobacco and alcohol. We seem to be more interested in banning things.”

IP Rights There is also the thorny issue of Intellectual Property rights, which are

guaranteed by Ireland’s Constitution, while they are also held as a cornerstone of doing business within the EU. “Our Intellectual Property rights are extremely valuable to us and we will absolutely defend them, just like any other company would,” Healy stresses. “You can’t just take somebody’s rights away, particularly when you haven’t even done the basics of a Regulatory Impact Assessment to give a good reason why you should.”

Both Balala and Healy subscribe to the slippery slope argument that it is tobacco today, but this debate could encompass other sectors in the near future, including alcohol, fast food, carbonated soft drinks, high fat foods etc.

“We know that leading public health lobbyists in Ireland have come out in favour of plain packaging for alcohol products, and they also want health warnings on alcohol,” Healy muses. “There are new measures proposed forbidding fast food outlets within a certain distance of schools.

Just recently, Micheál Martin said that childhood obesity and alcohol abuse should be given the same priority as smoking. So this slippery slope is invariably going to happen because public health lobbyists will move onto the next thing.”

“It comes back to the debate over the nanny state,” Balala adds. “Ireland is now being seen as a country where consumers can’t make a choice: they are being told what to do.”

Maximising Returns From Tobacco Despite all the regulation that has been thrown at the tobacco sector in recent years, 21.5% of Irish adults continue to smoke (Source: HSE), and the tobacco sector remains hugely important to retailers. So how can Ireland’s beleaguered retailers maximise their returns from legitimate tobacco sales?

“The most important thing from a shopper perspective is that their product is available,” Balala stresses.

“Even though the tobacco shopper can no longer see their brand on shelf, it’s vital that when they ask for it, they get it. Having their top SKUs on-shelf 100% of the time will feed turnover and margins. Even though we talk about the shift towards value, tobacco smokers are very brand loyal. The most important thing for them is that their brand is available in store.”

Tobacco manufacturers are as guilty as any other supplier at launching new products, Balala admits. “We have to be very conscious that the products we are asking a retailer to stock are the

Carmel Balala: “To a retailer, a tobacco shopper is worth twice the value of a non-tobacco shopper over a year.”

ones that the consumer is looking for, so we have to work with them on range, on cash-flow etc. If we all start to work together, the benefits are there to be realised. It’s about understanding what products are selling and making sure you have them in-stock all the time.”

John Player recently carried out research on tobacco shoppers, which makes for very interesting reading, particularly for forecourt operators.

61% of tobacco shoppers visit a forecourt to purchase tobacco, but not necessarily to buy fuel: “When we examined these results, we found that it was because they knew their brand would be there and they knew the store would be open.”

John Player have carried out extensive research on out-of-stock rates in tobacco. “The biggest cause of outof-stocks in tobacco is poor ordering,” Balala admits. “Good retailers will be very astute on this but there are some retailers who aren’t looking at what is selling, so they’re not meeting their customers’ demand.”

Managing the tobacco category is about having a dedicated member of staff whose job it is to know what products are selling and in what quantities, each week.

“If the person who manages the tobacco category in your store is on leave, there needs to be somebody else who can manage it. They need to know what is in the stock room, so they are not over or under-ordering,” she explains. “If tobacco is managed properly, it will continue to be a hugely important and valuable category for Irish retailers.”

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Cigarettes & Tobacco Requisites

Smoke Signals Despite the increased regulation, the tobacco category remains one of the most important and valuable in your store.

THE tobacco sector remains one of the most important categories in your store, contributing up to 35% of your turnover, despite the fact that it is the most regulated sector in the entire FMCG spectrum.

The sector is never without controversy, with the latest debate surrounding Minister for Health, James Reilly’s proposed introduction of plain packaging on the 35% of cigarette packets that will not be covered by a health warning.

Despite the continued introduction of new regulations, however, tobacco remains a key product segment for legitimate retailers, particularly those in the convenience and forecourt channel. Irish tobacco consumers are extremely brand loyal and they want to ensure that when they visit your store, their brand is in stock, 100% of the time. Indeed, recent research by John Player found that 61% of tobacco shoppers visit a forecourt to purchase tobacco, but not necessarily to buy fuel, primarily down to their confidence that said forecourt will (a) be open and (b) will have their favourite brand in stock.

Tobacco consumers are worth more than non-tobacco consumers to a retailer, and not just because of the high ticket value of tobacco products. They are regular shoppers and it has been proved time and again that tobacco consumers regularly purchase other products while in-store.

The big problem for tobacco retailers, however, is the continued prevalence of the illicit trade. While legitimate and licensed retailers are being hit with ever increasing levels of regulation, illegal street sellers continue to make a killing on our streets, in our markets and even going door-todoor, selling illicit product. If a legal tobacco retailer breaks the law, they are rightly fined and lose their licence to sell tobacco, but judges continue to hand down minimal fines to those found guilty of selling illicit tobacco.

According to the latest report into the sector by Euromonitor, the spectre of NIDP (Non Irish Duty Paid) cigarettes continues to haunt the industry, with sources suggesting that 28% of cigarettes consumed in Ireland in 2012 evaded Irish excise taxes. Ongoing increases on VAT and excise has led many Irish consumers to forgo traditional retail channels to purchase their tobacco on the black market

instead.

Due to the high cost of cigarettes (Ireland has the highest cigarette prices in the EU), Irish customers continue to look for value for money alternatives in the cigarette category.

This has seen customers both “trade out” to the illegal market and “trade down” to cheaper tobacco alternatives, according to Euromonitor. This change in consumer behaviour has resulted in huge growth for the RYO (Roll Your Own) smoking tobacco category and the new Make Your Own category, both of which are estimated to be growing at 15%. However, premium factory made cigarettes still account for 70% of the market.

Tax increases and legislative restrictions continue to make life difficult for the Irish smoker. The 2013 Budget saw no change to this trend, as the Irish Government added 10 cents to the cost of a packet of cigarettes.

John Player The tobacco category in Ireland has witnessed unprecedented changes over the past three years and John Player forecast that this will continue. More and more adult smokers are choosing to switch from premium offerings to value, such that the value price segment now accounts for over 17% of total cigarette sales.

With all that in mind, John Player has thought outside the box and has introduced innovation to the Irish market which will deliver against adult tobacco consumers’ needs for value for money and you, the retailer’s needs for footfall and margin.

The launch of John Player Blue MYO follows on the success of JPS Red & JPS Silver MYO (Make your own) which in just one year since its launch, has grown to over 4.3% share of the Fine Cut Tobacco (FCT) segment, to February 2014.

John Player Blue has strong brand heritage in the Irish market and MYO is an obvious next step for extending the Blue Family portfolio.

John Player Blue MYO comes in a 10g Pouch, a 10g Kit format and a 50g tin to aid traditional smokers in choosing this new smoking format, giving even greater value. Adult smokers can now get the quality they expect from a John

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

Cigarettes & Tobacco Requisites a trade margin of 9.5% and a cash margin of €0.62. There are 10 packets in an outer and the outer price is €58.86.

JPS Black is a Virginia blend of tobacco, differentiating it from JPS Red, which is an American blend. Ireland is predominantly a Virginia Blend market, with 85% of adult smokers choosing this blend of cigarette. Having both JPS Black and JPS Red available will ensure retailers satisfy the needs of all JPS consumers.

The packaging is modern with a matt finish, conveying a premium quality offering but at a value price point. JPS Black is the lowest out of pocket factory made cigarette available on the market to Irish consumers.

GV Smooth is the most exciting brand to be launched on the Irish market in recent years. This new John Player Blue MYO comes in a 10g product from the house of Golden Pouch, a 10g Kit format and a 50g tin to aid Virginia comes with a superior blend traditional smokers in choosing this new that will appeal to today’s modern RYO smoking format, giving even greater value. smokers.

Player Blue product but at a fraction of This new blend, coupled with the the cost. Each 10g pouch can make up new vibrant GV Smooth packaging, has to 20 cigarettes for only €4.85, half the researched extremely well with adult cost of a premium cigarette.

RYO consumers. Further innovations JPS Black is an exciting addition have allowed John Player to price GV to the JPS portfolio, a Virginia blend Smooth at an extremely competitive and an international brand with a price, which will appeal to today’s hard strong appeal amongst chic consumers. pressed smokers.

The launch of JPS Black has further John Player has a strong track accelerated the growth of the value record of innovation across all category, which has doubled in size in segments of the Irish tobacco market. the last three years.

The launch of GV Smooth is further JPS Black highlights John evidence of this. Smokers’ tastes and Player’s dedication to investing in expectations are constantly changing, the VFM (value for due to economic and money) category and lifestyle pressures, creating products that and this launch is consumers are seeking. designed to please The VFM sector discerning RYO has grown by +13% smokers seeking a versus one year ago premium sweet blend and represents 17% at a competitive price. of the total market The display ban, (Source: ACNielsen, which was introduced total cigarettes ending in 2009, has had February 2014), little or no impact thus highlighting on the sale of new that consumers products, according continuously seek to John Player. New value. The JPS brand product launches has experienced that are designed to phenomenal growth satisfy real consumer in Ireland, growing needs continue to be at 22% versus one successful. year ago and now Ireland has representing 12% currently some of share of the value for the highest prices for money category. tobacco in Europe.

JPS Black is This has forced GV Smooth is a new product from available in king size many hard pressed the house of Golden Virginia, with and 100’s format smokers to seek out a superior blend that will appeal with an RSP of €8.00, cheaper alternatives to today’s modern RYO smokers.

Sales of Combi boxes are growing rapidly and GV Combi is particularly popular with Irish consumers.

to cigarettes selling at €9.50 for 20. Approximately 28% of current consumption of cigarettes and RYO is not sold in Irish shops as consumers turn to the Black Market in markets and on street corners across the country or by purchasing their tobacco products abroad.

There has been an increase in sales of RYO products as people turn to rolling their own cigarettes to ensure they continue to get excellent tobacco but at a smaller out of pocket cost – particularly in the case of the 12.5g pouches and combi boxes, which are

JPS Black is an exciting addition to the JPS portfolio, a Virginia blend and an international brand with a strong appeal amongst chic consumers.

W E N

IF IN DOUBT - LEAVE THEM OUT

Smoking is for adults and John Player believes that children should not smoke.

Please be ever vigilant. If there is any doubt about a person’s age - always refuse the sale.

Information for Trade Customers Only.

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

Cigarettes & Tobacco Requisites growing rapidly. RYO acts as a buffer to the sale of illicit products and keeps smokers who may have been tempted to buy illicit within the legal channel.

GV Smooth will offer both consumers and retailers the best prices available.

GV Smooth 12.5g Combi will be priced at €5.10, with a trade margin of 10.40%, while the GV 12.5g pouch will be €4.95, with a trade margin of 9.65%.

These prices are only part of the strong support behind GV Smooth

New from Silk Cut is the fresh and innovative product Silk Cut Superslims Choice, which includes capsule technology inside.

Silk Cut JTI’s Silk Cut is proudly placed as the current number one selling brand in the Irish market. Silk Cut now looks to launch its fresh and innovative product Silk Cut Superslims Choice, which includes capsule technology inside.

Silk Cut Superslims Choice will replace the two current propositions available in the Irish market: Silk Cut Superslims Purple and Superslims Menthol. The new proposition Silk Cut Superslims Choice contains the same product characteristics of both the current Superslims propositions. The tar and nicotine content remain the same and in addition, now includes capsule technology which provides an instant switch to menthol taste.

Consumers will enjoy the same price point €9.20 that Silk Cut Superslims Purple and Menthol currently retail at in the Irish market.

Furthermore, consumers will value the high quality Silk Cut smooth taste with capsule technology.

Silk Cut Choice is the fastest growing proposition in the Silk Cut Portfolio. Recently, Silk Cut has proudly introduced Less Smoke Smell (LSS) technology to its valued proposition Silk Cut Choice. The introduction of LSS technology in Silk Cut Choice assists in strengthening its momentum and consolidates Silk Cut’s recognised position as the number one brand in the Irish Market (Source: Nielsen, Jan’14).

Silk Cut introduced LSS technology for the first time last year in Silk Cut King Size. LSS technology has undertaken extensive research amongst existing adult smokers, who perceived the initiative as a genuine innovation.

The price point of new Silk Cut Choice LSS stayed the same at €9.50, along with the same blend and taste. In addition to these enduring features,

Silk Cut Choice is the fastest growing proposition in the Silk Cut Portfolio, and the brand now includes Less Smoke Smell (LSS) technology.

Mayfair, from JTI Ireland, is rejuvenating its core house range across all three key styles: Original, Smooth and Menthol.

Silk Cut Choice adult smokers will now benefit from the innovative technology which delivers a reduced smoke smell.

Mayfair April is an important month for the entire value cigarette market. Mayfair, the value market leader with 45% share of market (Source: Nielsen extended scan track, 52 weeks, 23/02/2014) is rejuvenating its core house range. As the number one brand in the value sector, it is imperative to consistently evolve the Mayfair brand, while retaining the quality that remains at the heart of the brand’s core.

Mayfair, from JTI Ireland, is sold in three key formats (King Size, Super Kings and Big Box) and three key styles, Original, Smooth and Menthol.

As a brand, it is the ultimate combination of value and quality, which allows Mayfair

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Cigarettes & Tobacco Requisites to remain the leader in an extremely competitive sector.

PJ Carroll In January 2014, PJ Carroll launched Carrolls Additive Free* to the Irish market (NB: no additives in the tobacco blend does NOT mean a less harmful cigarette). Two SKU’s, are available both King Size: Additive Free* Red, a

across Western Europe, month on month gaining share.

Lucky Strike in Finland, which is a very similar market to Ireland, saw the brand grow from 0.09% to 1.6% share (Source: ACNielsen) in nine months following the Additive Free* launch in May 2013. PJ Carroll expect to see the same results in Ireland.

The number of consumers choosing to know exactly what is in their products is rising steadily.

The awareness levels around how consumables are produced, what ingredients they contain and how they are made gave PJ Carroll the impetus to launch an Additive Free* product in Ireland and give these adult smokers a choice.

Additive Free* means quite literally that there is nothing added to the tobacco but sun and water, which gives adult smokers the chance to experience the “true taste of tobacco”.

Additive Free* Blends are those which do not contain any casings, flavourings or humectants, all ingredients used in the manufacturing process, which ultimately determine the taste of the smoke.

Carrolls, as a brand family, has been in existence since 1958, with Number 1 sitting firmly at the head of the table. It is a reliable, trusted, Irish brand. PJ Carroll felt that with these accolades, it was the only brand to support and parent the Additive Free* portfolio extension. The brand has been supported with a “Naturally, Irish” tagline and has been highlighting the playfulness of the Irish vernacular and using the “Feck All Else” campaign.

For further information on Carrolls Additive Free*, please contact PJ Carroll’s telemarketing department on (01) 2052345 or speak to your PJ Carroll representative.

BIC Every day, BIC produces and sells six million lighters around the world, making it the number one branded pocket lighter worldwide and also number one in Ireland (Source:

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

Online Harris Research: Consumer preferences for cigarette lighters in Southern Ireland, January 2013: 502 respondents).

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

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

Consumers can choose from a wide range of BIC’s different lighter décors, which include Miss BIC, a new flint lighter range aimed at females, and bespoke Irish décors, which showcase some of the country’s iconic symbols. Recently, BIC has even held a competition to celebrate creativity in Ireland, whereby the brand called

January 2014 saw PJ Carroll launching Carrolls Additive Free to the Irish market in two SKU’s: Additive Free* Red Additive Free* Blue.

10mg, full flavour cigarette & Additive Free* Blue, a 7mg smooth flavour cigarette. The packs, with their subtle vintage tones, are engaging adult smokers who are interested in the Additive Free* concept. Additive Free* Blends are steadily on the increase

Miss BIC is a new flint lighter range aimed at females.

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Cigarettes & Tobacco Requisites

BIC have a range of bespoke Irish décors, which showcase some of the country’s iconic symbols.

on Irish people to submit their lighter designs and be in with a chance of having their design produced on a lighter that will be sold throughout the country.

Not only do BIC lead the way in the branded pocket lighter market but BIC also boasts the BIC household Megalighter; an essential household accessory that, with its renowned safety features, is ideal for lighting household fires, candles and barbeques.

disposable lighters not only meet stringent international regulation, they exceed and often redefine them.

Cricket was the first in the world to introduce child-resistant lighters in 1993 and uniquely is manufactured in self-extinguishing nylon, which also gives the lighters a thinner casing, lighter weight and more gas for its users.

In a recent study, 60% of consumers said they preferred the comfortable Cricket lighter shape against other alternatives and also rated its ease of lighting as best overall (Source: www. adhocresearch.com, March 2013).

In the local market, SHS Sales and Marketing Ireland manages Cricket’s popular range of electronic and sparkwheel lighters and retailers can

Manufactured in Europe, Cricket’s disposable lighters not only meet stringent international regulation, they exceed and often redefine them.

Cricket Known worldwide for their quality, safety, and design, Cricket lighters are the oldest brand of disposable lighters still manufactured today.

When launched in 1961, it was first of its kind in the world and today some 200m customers across more than 140 different countries place their trust in Cricket’s iconic and reliable lighters.

The brand’s continuous product development has resulted in it becoming one of the world´s safest disposable lighters. Both the products and the production process are quality certified by ISO and all lighters undergo more than 60 tests before they are released to the market.

Manufactured in Europe, Cricket’s

SHS Sales and Marketing Ireland manages Cricket’s popular range of electronic and sparkwheel lighters and retailers can receive free point of sale displays by contacting the team on (01) 4016200.

receive free point of sale displays by contacting the team on (01) 4016200.

For more information about Cricket’s range or for sales enquires, please contact SHS Sales & Marketing: Tel. (01) 4016200; email: info@shs-sales.ie.

Swan Swan Ultra Slim filter is a premium, quality product that was created for the more discerning RYO smoker.

Swan Ultra Slim filter is the thinnest ever produced Swan filter.

Available from Ampersand, this filter is the thinnest ever produced Swan filter, providing RYO smokers with a smoother taste and an enhanced tobacco flavour.

Filters and papers specialist, Republic Technologies developed the Ultra Slim Swan-branded filter to meet the demands of the market’s ‘RYO connoisseurs’. They found one of the reasons smokers choose RYO is because it enables them to make thinner cigarettes, which in turn means they smoke less.

The size of filter is also becoming more important in the RYO sector, particularly among people looking to reduce smoking for health or cost reasons, and the Swan Ultra Slim filter is the product that addresses those specific consumer needs. Swan Ultra Slim filter pack contains 126 filter tips and has an RSP of €1.30.

Ampersand carry a full range of Swan filter tips and the Swan Combi Pack, combining their popular filter tips with superior quality rolling papers. The pocket-sized pack has been made even thinner, with a slider catch to protect the contents, making it more convenient for the RYO smoker. Swan offers retailers a premium quality offering, with a variety of products giving higher retail margins. For more information, please contact your Ampersand representative.

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Retail Ireland: Monthly Update RETAIL IRELAND WELCOMES ABSENCE OF “GROCERY CODE” IN NEW REGULATIONS MARCH 31 saw the Government publish the Competition and Consumer Protection Bill 2014, empowering the Minister for Jobs, Enterprise and Innovation to introduce future regulations stipulating the conditions that must be followed in commercial relationships between suppliers and retailers.

The legislation is designed to prevent certain unfair practices, such as unilateral altering of contracts, retailers requiring ‘hello money’ for space in supermarkets or forcing suppliers to fund promotions, as well as wastage or shrinkage.

Retail Ireland has always been supportive of moves to ensure that relationships in the supply chain are as fair and balanced as possible and we are committed to the recently introduced European voluntary initiative in this area. We welcome the fact that the Bill does not set down an expensive and bureaucratic code of conduct and does not provide for a levy on retailers and the establishment of an Ombudsman scheme for the entire sector.

Given the very narrow margins retailers are operating under, we will continue to stress that regulations which may ultimately be introduced should be reasonable and proportionate.

Supporting New Green Guidelines for Retailers GREENBUSINESS, in conjunction with the Environmental Protection Agency, has published a useful set of guidelines dedicated to helping retail businesses reduce their costs, better manage their waste and limit their environmental footprint. Retail Ireland is delighted to have been asked to endorse the guide and it receives our full support.

The guide provides Irish retailers with the information, guidance and tips needed to reduce business costs by making small Pictured at the launch of Resource Efficiency for yet significant changes to how resources are the Retail Sector at the Dundrum Town Centre are (l-r): Louis Copeland; Don Nugent, Dundrum Town managed, thereby also enhancing the green Centre; Stephen Lynam, Director, Retail Ireland; credentials of our industry.

The guide is aimed at all retailers, from large and Senator Feargal Quinn. corporate chains to small independent stores, and is an invaluable resource in helping businesses to reduce their energy, water and waste bills.

To access a copy of the guidelines, visit www.retailireland.ie.

Final Tickets for Annual Conference A LARGE number of retailers have already secured their place at the Retail Ireland MasterCard Annual Conference 2014, which takes place on Tuesday, May 6, from 8am to 2pm at the Gibson Hotel, Point Village, Dublin 1.

The theme of this year’s conference is ‘Recovery and Renewal’ and the speakers will leave you with the advice and knowledge needed to help grow your retail business.

The event will be opened by An Taoiseach, Enda Kenny TD, and chairing the day’s events will be media entrepreneur and popular broadcaster, Norah Casey, with keynote address by The Baroness Neville-Rolfe, formerly of Tesco plc, now a member of the House of Lords and serving President of EuroCommerce.

There are now limited places remaining at what promises to be Ireland’s retail event of the year.

To access a full list of speakers and to secure your place, visit www.retailireland.ie.

Lower Payment Card Fees?

THE European Parliament has voted to fully endorse last summer’s proposals from the Commission to introduce an EU-wide cap on the level of multilateral interchange fees levied on payment cards.

The proposals limit the MIF component of debit card processing charges to 0.2% (of the transaction value) or €0.07, whichever is the lower, whilst MIF on credit cards will be capped at 0.3%. The proposals also permit each national Government to introduce even lower caps, should they so wish.

The proposals now progress to the Council, where a final decision is due before the end of the year. Meanwhile, EuroCommerce and Retail Ireland will continue do everything we can to ensure a pro-retailer outcome.

Retailers regularly remark on the high cost of card handling fees.

As such, this move to drive down the cost of accepting electronic payments is to be welcomed by retailers and consumers alike as a significant step in the right direction.

Tel: 01-6051558 www.retailireland.ie

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Drinks News Molson Canadian Sponsors Indiependence Festival MOLSON Canadian is delighted to announce the extension of its sponsorship of the Indiependence Music & Arts festival for another three years. Following the success of last year’s association, Molson Canadian’s extended sponsorship will begin with this year’s festival, INDIE14, taking place on the August Bank Holiday weekend at Deer Farm, Mitchelstown, Co. Cork.

Molson Canadian believes that sponsoring the Indiependence Music and Arts festival is an obvious and natural decision, given the strong connection the spirit of the brand holds with the great outdoors and enjoying time with friends.

Indiependence has established itself as one of the flagship events on the Irish summer festival calendar in recent years, with last year’s event completely selling out. Equally, 2013 was a great year for Molson Canadian with the brand’s arrival in April marking the biggest lager launch in Ireland for more than a decade. For 2014 and beyond, Molson Canadian is pledging its support in helping to grow Indiependence and become a truly integrated festival partner, with brand presence going far beyond pouring rights. Pictured at the announcement are Shane Dunne (centre), Managing Director of Indiependence Music & Arts Festival, with Niall Whelan (left) and Mick Dooley (right) of Molson Coors.

BARRY CROCKETT JOINS WHISKY MAGAZINE HALL OF FAME

TULLAMORE D.E.W. MARKS MAJOR MILESTONE Tullamore D.E.W. celebrated St Patrick’s Day 2014 with the arrival of four hand crafted copper stills, in preparation for the landmark opening of its new distillery in Tullamore. This was the first public glimpse inside the distillery building and marks a major milestone in Tullamore’s history by bringing Tullamore D.E.W. whiskey production back to its roots after 60 years. “The arrival of the stills marks another step towards the return of the whiskey making tradition to Tullamore,” noted William Grant & Sons’ Chief Executive, Stella David. “We are excited to be marking this momentous event in a journey that has been almost three generations in the making.”

Cork Dry Gin Sails Ahead CORK Dry Gin have agreed to renew their sponsorship of the Calves Week Sailing Regatta for a third year in 2014. The Regatta will be held in Schull, West Cork, from August 5-8. “It is a great West Cork regatta coming together with a truly iconic Cork brand, the perfect mix,” noted Peter Morehead, Production Director of Irish Distillers Pernod Ricard. Cork Dry Gin Calves Week is a long-standing sailing festival run by Schull Harbour Sailing Club in the first week of August, which includes a race around the iconic Fastnet Rock. For further info see www.shsc.ie or follow Cork Dry Gin Calves Week on Facebook.

TEELING WHISKEYS HONOURED AS WORLD’S BEST TWO of the Teeling Whiskey Company brands were honoured with the accolade of the World’s Best at the 2014 World Whiskies Awards held in London recently. The Teeling Single Grain Irish Whiskey was awarded the title of World’s Best Grain Whiskey and the Teeling 21 Year Old Single Malt Silver Reserve (pictured) was awarded the title of World’s Best Irish Single Malt Whiskey. First held in 2007, the World Whiskies Awards, run by Whiskey Magazine, search for the very best whiskies in the world. This year’s competition saw more than 300 whiskies put through their paces with three rounds of rigorous tastings, to win the coveted title of the “World’s Best”.

BARRY Crockett, former Master Distiller at the Irish Distillers Midleton Distillery, has become the 17th inductee into the coveted Whisky Magazine Hall of Fame.

Awarded by ex-editor of Whisky Magazine, Rob Allanson, at the publication’s annual awards ceremony in London, Crockett was recognised for his contribution to the growth of the Irish Whiskey category during his 47 year career with Irish Distillers.

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Shelf Life KEELINGS have just harvested their first crop of Irish peppers.

The Keelings peppers growing unit comprises of 3.8 hectares of high technology greenhouse facilities which produces approximately 1,500 tonnes of peppers every year. Keelings’ green, red orange and yellow peppers account for approximately 90% of all Irish grown peppers and Irish peppers are at least two days fresher than those coming from elsewhere in Europe. Keelings peppers will be available until November.

Pictured is Keelings head pepper grower Bruce Bentley at the height of the Irish season last year.

HENRY Hugglemonster is Panini’s roarsome ITY new 36-page, OVER 85 ACTIV !

FUN AND LEARNING FOR YOUR LITTLE MONSTERS! INSIDE monthly magazine STICKERS Lots for pre-schoolers. of fun Activities Featuring the friendly monster family from Disney Junior’s 2 hugely popular TV Monster show, the magazine Stories is packed with stories, puzzles, learning and activities to keep little monsters entertained. In keeping with the PUZZLES STORIES LEARNING brand’s key attributes, the magazine presents Henry as the reader’s friend and guide to pre-school and family life. His adventures give the reader the opportunity to learn and have fun as they explore the colourful world of the not-so-scary residents of Roarsville. There are cut-out-and-play activities to encourage role-play and imagination – monster horns to cut out and wear, a pop-out monster card to make etc. Every issue will also include a fantastic free gift, as well as a fun sticker sheet featuring over 80 stickers that can be used interactively with the magazine. ©

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NESTLÉ Ireland has appointed Tamara Whitney as its new Head of Sales. She assumes responsibility for Nestlé Ireland’s sales operations, which includes its wide portfolio of products across the confectionery, beverage, food and pet care categories. She will lead Nestlé’s commercial strategy in Ireland as it continues to expand its presence and deliver category growth.

Tamara joins Nestlé Ireland from Pernod Ricard, where she was Business Unit Controller for the Grocery Multiple Channel across the UK and previously held a number of other commercial management roles, including Field Sales Controller. Prior to this, her industry experience spans a number of commercial roles in the food and beverage sector, including Premier Foods, GlaxoSmithKline and Coco Cola.

Nestlé has also appointed Kieran Conroy as its new Country Category Manager for Purina Ireland. He assumes the responsibility for Purina’s category strategy to continue the growth of its leading pet care brands in the Irish marketplace, which include Pro Plan, Bakers, Beta, Winalot, Felix, Go-Cat and Gourmet. He will also sit on the UK & Ireland Board for Purina. Kieran has over 10 years of experience in commercial management roles and previously held the position of Head of Sales with Nestlé Ireland.

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Disney

Issue 01

£2.99

17th Apr - 14th May

© Disney

PICTURED are Stuart Steele, Managing Director of Silver Hill Foods and Barry Murphy, energy specialist at Vayu, at the announcement that Irish energy supplier Vayu has signed a renewable electricity deal with Silver Hill Foods, one of Ireland’s most successful producers of duck products. Valued at €1m over two years, the agreement will see Vayu supply Silver Hill Foods with 100% green electricity to meet its year-round energy requirements as it continues to expand into new export markets.

BUNNY mania is sweeping the country this Easter, as Aldi and RTÉ 2fm are urging listeners to “hop to it” and hunt down the Aldi 2fm Bunny.

From April 14-18, 2fm listeners could win €1,000 of Aldi shopping vouchers each day with Aldi’s first nationwide bunny hunt. Consumers listened out for daily clues on RTÉ 2fm’s Breakfast Republic and The Nicky Byrne Show to track down the Aldi 2fm Bunny, with the Bunny hopping to a different location around the country each day. Pictured with the Aldi 2fm Easter Bunny are (l-r): RTÉ 2fm’s new presenters Bernard O’Shea, Keith Walsh and Jennifer Maguire.

THE Old Jameson Distillery in Dublin have launched their latest offering to visitors, the Barrelman’s Feast.

Aimed at an audience of thirty-something whiskey drinkers and thrill seekers, it promises to turn the traditional ‘hooley’ night on its head. Kicking off with a favourite cocktail of trendy bartenders, Jameson and Ginger Ale, the Old Jameson Distillery have even resurrected one of their barrelmen (pictured) to host the evening and offer a unique insight into the Jameson whiskey story. As the story of Jameson whiskey unfolds throughout the evening, visitors will enjoy a delicious four-course menu, including a delicious Jameson Crème Brulée dessert served on original whiskey barrel boards.

THE Sunday Times Ireland has announced the launch of a new tablet App, making the whole Irish edition, including all magazines, available in digital form. The App is both Android and Apple iOS tablet compatible. Readers of the Irish edition of The Sunday Times will now be able to download a PDF digital version of the newspaper’s award-winning news content, as well as the eight specialist supplements: Business + Money, Sunday, News Review, Sport, Travel, Culture, Style and The Sunday Times Magazine.

“Readers who enjoy The Sunday Times in print can now enjoy that same rich experience on their tablet,” noted Frank Fitzgibbon, Editor of The Sunday Times Ireland Edition. “By expanding onto new platforms, this will enable The Sunday Times Ireland edition to reach a wider group of readers and increase the publication’s total audience.”

The Irish Quality Food & Drink Awards 2014 11 September 2014 Round Room Mansion House, Dublin

Nothing says we’re the best like winning a Quality Food & Drink award IRISH

WINNER

IRISH

IRISH

IRISH

IRISH

VALUE

CHRISTMAS

WINNER

WINNER

SMALL PRODUCER WINNER

IRISH

IRISH

PACKAGING

VALUE

CHRISTMAS

WINNER

GOLD WINNER

GOLD WINNER

IRISH IRISH RETAILER GOLD WINNER

WINNER

Deadline for entries: 2 June To enter please visit www.irishqualityfoodawards.com For more details please contact: Lara Monahan, lara.monahan@irishqualityfoodawards.com 00 44 (0) 20 8253 8663 / Ireland 00 353 (0) 1 8176363 Please quote the promo code RNEFP2 when entering.

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