Retail News April 2011

APRIL 2011

to bu

sines

growing

together – 2011

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2011 offers a range of opportunities for us to work together in order to grow your business and ours, for our shared future success. 2011 – growing together.

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www.retailnews.ie|April 2011|Contents|1

Contents New Look: Same Great Content As we face into a new retail landscape, we figured it was time to give Ireland’s longest established grocery magazine a makeover, so welcome to the new look RETAIL NEWS. We’re very proud of our bright and bold new image, which we feel reflects the dynamism of the FMCG sector itself.

While the look may have changed, the quality of our editorial content remains as high and as relevant as ever.

In this issue, our Chief News Reporter, Pavel Barter, reports on the controversy over Tesco’s latest price campaign, with Dermott Jewell, Chief Executive of the Consumers Association of Ireland, urging retailers to conduct transparent marketing campaigns (Page 2). We also have the latest news on the Government’s proposed ban on upward-only rent reviews (Page 5).

Meanwhile, Gavin O’Leary, Circulation Sales Manager, Irish Daily Star, talks to editor John Walshe about the value of the Irish newspaper sector (Page 14). Also on the subject of the News Rack, retail consultant Karen Meenan predicts strong sales for motoring magazines (Page 16), with increased profit opportunities for retailers.

Elsewhere, Gillian Swaine, Retail Specialist, Ireland Market, Bord Bia, reports on Bord Bia’s recent ‘Feeling the Pinch’ study, which explores changing consumer behaviour in the current economic crisis (Page 30) and Jean Smullen advises on the top-selling American wines on the Irish market (Page 46).

Finally, see Page 9 for your chance to win tickets to Bloom 2011, Ireland’s leading flower, food and family festival.

News

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Tesco Under Fire Over Price Promotion.

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Out-of-Stocks Costing Retailers €4 Billion Annually; Landmark Ruling for Alcohol Retailers.

Tenants Fight Back in Rent Review Initiative; Retailers Utilise Social Networks.

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SuperValu of the Year 2011; Controls on Food Imports from Japan.

The recession has not stopped Kevin and Margaret Frayne from investing in their Enniscorthy store, thanks to the support provided by their symbol group partners in the Gala Group.

Jean Smullen looks at the top-selling American wines here, and predicts some sure-fire winners for your shelves.

All the latest news and gossip from the trade.

Persil...Dirt is Good

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Persil Small & Mighty concentrated liquid is being re-launched this month.

Market Overview

30

Bord Bia’s recent ‘Feeling the Pinch’ study explores changing consumer behaviour in the current economic crisis.

32 REGULARS 8 19 43

Industry News Drinks News Market News

SECTORAL REPORTS

Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

Editorial & Marketing Director: Kathleen Belton

Tel: (01) 2413095 Fax: (01) 2413010

Editor: John Walshe

Web: www.retailnews.ie Email: retailnews@tarapublishingco.com

kathleen@tarapublishingco.com

Subscription to Retail News: €95 plus VAT Email: aoife@tarapublishingco.com

pat@tarapublishingco.com

Origination by: Rooney Media Graphics

Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

Jack Fitzpatrick and Tracey O’Neill haven’t looked back since their Cahirciveen forecourt joined the SPAR Group.

On The Vine

48

Managing Director: Fergus Farrell

Pat Murray

44

Shelf Life

7 $ 5 $

Advertising: Kathleen Belton

Forecourt Focus

16

Published by: Tara Publishing Co. Ltd.,

johnwalshe@tarapublishingco.com

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46

Shop Profile

Kathleen Belton Editorial & Marketing Director

Motoring magazine titles are showing steady growth.

SuperValu to Create 400 New Jobs; Planning Ahead; New Chief Executive at NDC.

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Gavin O’Leary, Circulation Sales Manager, Irish Daily Star, discusses the value of the Irish newspaper sector, the margins issue, the growth of free-sheets and the future for traditional media.

Karen Meenan’s News Rack

2 3

Retail News Interview

Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

23 32 37

Ice Cream Snack Foods Personal Care

£2.5 MILLION TV INVESTMENT

6 week campaign p 1st May - 12th June ne

• Massive TV support 2.5 million reasons to stock New Loctite Superglue • New innovations in Superglue technology • Call your Wholesaler to order yours now

THE NATION’S No.1 SUPERGLUE† †

Gfk RT UK Panel Market, Fast Act Glues, Value and Volume. Jan-Dec 2010

TELESALES HOTLINE:

01707 289068

tele.sales@uk.henkel.com FAX: 01707 289099

8|Retail News|April 2011|www.retailnews.ie

Industry News

BACK TO BREAKFAST WEEK 21% of girls and 15% of boys living in Ireland are overweight (Source: Irish National Children’s Food Survey, 20032004) and bad dietary habits need to be reversed so that children can be protected from a life sentence of obesity.

Such was the message at the launch of the Irish Breakfast Cereal Association’s ‘Back to Breakfast Week’. 96% per cent of Irish kids are eating breakfast, which is very good news, as breakfast is a low

Call for Urgent Regulation of the Signage Industry GAELITE Signs, one of Ireland’s leading experts in the design, manufacture and installation of signage, is calling for urgent regulation of the signage industry in Ireland to ensure that European Best Practice standards are met by all Irish suppliers. This is seen as essential in order to futureproof the development of the Irish signage sector internationally. Speaking at Gaelite Signs’ Future Focus seminar, Finbarr Clarkson, MD, highlighted the complete lack of regulation in the signage industry in Ireland and also the implications

this has on the future of the sector as a whole: “These are challenging and competitive times but as an industry we need to be steadfast in the standards we set for ourselves in order to build upon our reputation on an international level.” Pictured at the Gaelite Signs Future Focus Seminar are (l-r): Pat Kinsley, branding expert and Managing Director of Neworld Associates; Minister for Small Business, John Perry TD; Finbarr Clarkson, MD of Gaelite Signs; and Leo Crawford, President of IBEC and Chief Executive, BWG Group.

fat meal and it makes a really positive contribution to the daily diet. “The problems in the overall daily diet are not coming from breakfast; in fact, breakfast is a protection against what is happening elsewhere in the day,” said Professor Albert Flynn, Irish Universities Nutrition Alliance, IUNA, who is pictured (right), with John Flahavan, Chairman of the IBCA; Margot Brennan, INDI; and broadcaster Miriam O’Callaghan.

NCR SELFCHECKOUT WINS TOP AWARD

SUPERVALU TO SELL €5M OF IRISH STRAWBERRIES CARA Sangari, age 6, gets ready for a ‘berry nice’ summer at the launch of SuperValu’s first strawberries of the season.

SuperValu will account for €5m worth of fresh strawberry sales in 2011. “At SuperValu, we are fully committed to supporting local Irish producers and growers. SuperValu’s commitment to investing in local produce guarantees top quality, fresh Irish fruit and vegetables for consumers and resulted in combined Irish retail sales of €1 billion of fresh Irish food in 2010,” said Martin Kelleher, Managing Director, SuperValu.

NCR Corporation’s current release (version 5) of its NCR SelfServ Checkout solution has won a ‘Good Design Award’ for product design excellence in the Electronics category. A market-leading technology for retailers across the globe, the NCR solution was selected for this highly competitive, international award from among thousands of companies from 48 countries. “Innovation that enhances the usability, design and ultimate consumer experience of our self-service solutions is a critical strategic priority for NCR,” said Lyle Sandler, Vice President, design and consumer experience, NCR Corporation.

“This prestigious award, recognising the innovative design of NCR self-checkout, is just one example of how technology can influence an industry, transforming the way people shop and conduct transactions worldwide.”

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Bl Bloom, IIreland’s l d’ lleading di fl flower, ffood d and d ffamily il ffestival, i l returns to D Dublin’s bli ’ Ph Phoenix i P Park k this June Bank Holiday Weekend, June 2-6. The event, which has attracted over 200,000 visitors since its inaugural staging in 2007, is set to be five days full of flowers, food and fun for all the family.

“We have another 25 striking and unique gardens in the pipeline for Bloom 2011,” enthused Gary Graham, Bloom Show Manager, Bord Bia. “Each and every year, our designers are inspired by art, nature, fashion and society to create new and interesting designs. We also have a wealth of features and activities to appeal to all audiences.”

Key features for Bloom 2011 include a fabulous artisan food area, incorporating Ireland’s largest farmers market and the chef’s stage, where the best of Ireland’s culinary geniuses will demonstrate throughout the weekend.

Other elements include the engaging space garden section and the walled kitchen garden, as well as a spectacular floral pavilion featuring 50 displays and the best of Irish plants and flowers, while the Garden Expert Stage will host a comprehensive range of leading experts in horticulture, gardening and floristry. Space will also be made available for the winner of RTE’s Super Garden Show.

For more information, see www.bloominthepark.com, www.facebook.com/bloominthepark or www.twitter.com/bloominthepark.

To be in with a chance to win one of five pairs of tickets to Bloom 2011, just answer the following question: Q. Name two elements you can discover at Bloom 2011?

Answers on a postcard, together with your name, address, telephone and email address to Bloom Competition, Retail News, Poolbeg House, 1-2 Poolbeg Street, Dublin 2 or email your answer and details to retailnews@tarapublishingco.com.

Closing date for entries is May 13th 2011. Terms and conditions apply.

Judges decision is final. No cash alternative.

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10|Industry News|April 2011|www.retailnews.ie

Industry News

CENTRA Store of the Year Awards CENTRA Stores in Tullamore, Dublin, and Ennis scooped the top awards at the recent Centra Store of the Year Awards ceremony. A tough contest, which saw fierce competition from seven other excellent finalists from around the country, announced Scally’s Centra, Tullamore, as the overall winner of the contest, receiving the Gold Award. Courtney’s Centra, Fairview, came a close second, winning the Silver Award and Ryan’s Centra, Ennis, received the Bronze Award.

The National Awards were presented at the group’s National Conference by Martin Kelleher, Centra Managing Director, and Michael Morgan, Centra Sales Director.

All 468 Centra stores throughout the Republic of Ireland are assessed for the Centra Store of the Year competition by independent retail consultant, Alan Collins.

The audit focuses on value, customer care, fresh food offering, hygiene and product range.

Located in the heart of their communities Scally’s, Courtney’s and Ryan’s extensive range of products, with a concentration on hot-food, deli, fresh bread, bakery and an exceptional selection of fresh fruit and vegetables, all combine

to provide exceptional stores for both local shoppers and passing trade.

Commenting on the awards, competition judge Alan Collins said, “These stores are an excellent example of how a top class store should operate. While catering for the busy lifestyles of consumers in their areas, with a range of hot food and takeaway meals, all stores also compete to provide the best value for money offering on a full range of goods to meet their customer needs.

“Scally’s, Courtney’s and Ryan’s place a huge emphasis on providing good customer service and a range of services to ensure a unique shopping experience,” he continued. “Local sponsorship of many community initiatives within the Tullamore, Fairview and Ennis areas makes these Centra stores and their staff an integral part of their individual communities.”

Delighted with the win, Ben Scally paid tribute to his team and said that their constant dedication and professional approach was what singled out the Tullamore store for the award. “We work hard as a team on a daily basis to provide our customers with firstrate customer service and excellent value throughout the store.

Michael Morgan, Centra Sales Director, congratulates store owner Fiona Scally, Scally’s Centra, Tullamore, on winning the title of Centra Store of the Year 2011.

“The strong performance of our Deli and ‘Good-to-Go’ offering, catering for the busy and value-led consumer, keeps us very focused on areas such as price, hygiene, quality and customer service.

We are delighted with this award, as it recognises and endorses the work we do to provide our customers with a top-class local shopping facility.”

Martin Kelleher, Managing Director of Centra, said the group’s auditing standards in all areas of the business are second to none and are important to the overall success of Centra as a group: “Centra stores, such as these winning stores, work hard to succeed in a very competitive market, by meeting the needs of their local community and providing choice, good value and excellent service in a convenient location. Scally’s, Courtney’s and Ryan’s Centra stores are a perfect example of local independent retailers working hard for their local communities and delivering stores that are recognised as the best in Ireland.”

Martin Kelleher, Centra Managing Director (far left) and Michael Morgan, Centra Sales Director (far right) congratulate store owner Lil Courtney, Managers Carmel O’Connor and Barry Faye, and Ruta Vysniauskyde, Deli Manager, on winning the Silver Award at the recent Centra Store of the Year 2011 competition.

Paul & Kay Ryan, Ryans’s Centra, Ennis, Co, Clare, receive their Bronze Award at the Centra Store of the Year competition from Martin Kelleher, Centra Managing Director, and Michael Morgan, Centra Sales Director (centre).

www.retailnews.ie|April 2011|Retail News|11

Industry News

BuyLo Opens in Shannon

POSTFONE SIGN UP WITH PAYZONE PAYZONE has announced an agreement with postfone, one of Ireland’s newest mobile virtual network operators, to provide mobile phone top-up services for postfone customers using Payzone’s retail payment terminals. The new service is being rolled out across the network of over 1,500 branded Payzone retail agents throughout the country. Pictured at the announcement are (l-r): Jim Deignan, Managing Director, Payzone Ireland, and David McCarthy, Programme Manager at Postfone.

BUYLO, the new Irish discounter, had a hugely successful opening weekend at its newest store, located at the Skycourt Shopping Centre, Shannon, Co. Clare. More than 100 people waited anxiously for the doors to open at 11am, while management and staff put the final touches in place for the grand opening. The new 13,000 square feet Shannon store can be easily accessed just off the N18, on the Ennis to Limerick Road. The store was completely refurbished prior to the opening and has created 12 new jobs in the locality. Management were overwhelmed with the response to the opening weekend offers,

with thousands of shoppers flocking to avail of the fantastic value available across family grocery and household products.

NEW DRINK FROM DIAGEO ALESHA Dixon, singer and ‘Strictly Come Dancing’ judge, teamed up with Diageo Ireland to launch eve - a new alcoholic drink available in two exotic fruit flavours, delicate eve lychee, and the tropical eve passion fruit. “I am absolutely delighted to be in Dublin to launch eve,” said the singer. “It’s my kind of drink; effortlessly stylish, really feminine and sophisticated.” The lightly sparkling new drink, with an ABV of 3.1%, is specifically developed for the female market. Pictured at the launch of eve are Nick Curtis-Davis, Marketing Manager, Diageo, and Alesha Dixon.

Four Promises From Unilever UNILEVER Foodsolutions Ireland has announced the culmination of months of work and the biggest ever investment in Knorr to deliver its ‘Four Promises’ to the Irish foodservice sector: better taste; better ingredients; better planet; better efficiency. The result of this

extensive work brings Unilever’s sustainability credentials into sharp focus and includes reformulations of recipes and repackaging of the range, which will deliver real benefit to chefs, caterers and wholesalers. Over the next two years, the entire Knorr granules, powder mixes and pastes portfolio will be relaunched, including its demi glace, sauces, soups and gravies. “Knorr Four Promises is the culmination of extensive investment and commitment on behalf of the company,” said Claire Sullivan, Marketing Director, Unilever Foodsolutions.

“We believe our Four Promises demonstrates our passion for taste and our commitment to a sustainable future.” Mark McCarthy, Development Chef with Unilever, is pictured at the launch.

Pictured are Pat Kelly, Manager SkyCourt; Norman Lenihan, BuyLo; and Sean Leo, BuyLo store manager, Shannon.

JUST MOBILE PARTNERS WITH TOPAZ

JUST Mobile, the Irish owned independent mobile network operator, has announced a new partnership with Topaz, which will see JUST Mobile products available in all of Topaz’s 109 service stations across Ireland. This partnership will increase the number of retail outlets offering JUST Mobile products to almost 800 outlets in over 500 towns and villages nationwide.

JUST Mobile handsets will also be available in selected Topaz outlets, with offers and bundles specifically designed for Topaz customers. Pictured are JUST Mobile’s Stuart Kelly, Co-Founder & Sales Director, and Donal Lawless, Co-Founder & Managing Director.

12|Retail News|April 2011|www.retailnews.ie

Shop Profile The recession has not stopped Kevin and Margaret Frayne from investing in their Enniscorthy store, thanks to the support of Gala.

Kevin and Margaret Frayne, pictured outside their Gala store in Enniscorthy, Co. Wexford.

Gala in

Performance

Enniscorthy

RETAIL NEWS first met Kevin and Margaret Frayne almost

a decade ago, when they had just opened their Gala shop in The Duffry in Enniscorthy, Co. Wexford. It is an understatement to say that a lot has changed since then.

“For six or seven years after RETAIL NEWS last visited our shop, trade did extremely well,” Margaret reveals. “The economy was buoyant and Enniscorthy was growing. Along with Gala, we had created a shop that really suited our community and our customers.”

A global economic downturn, the failure of the Irish banking system and the knock-on effects they have had on the economy have affected retailers the length and breadth of the island. However, difficult trading conditions and uncertainty over the future have not prevented Kevin and Margaret from investing in their business. The support provided by their symbol group partner, Gala, has played a big part in helping the couple to undertake that investment.

“Following the downturn in the economy, we experienced falling sales in the shop for the first time since we opened,” Kevin explains. “The Gala Group reacted quickly to the changing conditions, by delivering increased value to its retailers, so that we in turn could do the same for our customers. Gala engaged in negotiations with a variety of suppliers, from stock to energy suppliers and insurance providers, to allow Group members to reduce their running costs.”

Confidence in their Business

The work of the Gala Group helped Kevin and Margaret to keep the shop trading, as the recession went from bad to worse. Perhaps more importantly, it imbued them with a quality that is conspicuously lacking from our economy at the moment: confidence.

“Gala has been working very hard with its retailers to maintain quality and standards in the Group, while

www.retailnews.ie|April 2011|Retail News|13

Shop Profile delivering a more balanced value for money package for our customers,” Kevin notes. “With a combination of broader selections of branded value offers from Gala, an increased own brand range that has grown to over 200 lines at the moment and savings in running costs delivered by the Group’s negotiations with suppliers, we felt confident enough to invest in the shop, to change it and give it an edge that further distinguished it in the mind of the customer.”

With close to 2,000 square feet of retail space in the shop pre-revamp, the Fraynes very sensibly decided not to alter the footprint of the building or undertake any major structural works to the exterior. This kept costs to a minimum, reduced the length of time the revamp took and allowed them to remain trading throughout the development.

Despite the lack of structural works, the entire interior layout of the shop was redesigned and all the elements were updated. The schedule of works was completed in just four weeks and much of the work was done during the evenings and nights. An increasingly common theme in shop developments is the addition of energy efficient units for freezing, heating, chilling, etc. The combined effect of cost savings delivered by the Gala Group and the energy efficiencies achieved in-store by the revamp have seen the running costs in the shop fall by approximately 20%, which is a fantastic start for any retailer – grocery or otherwise.

Brand New Look

By the end of October 2010, the shop was up and running with a brand new look and a new selection of stock that has been designed to balance margin with sales volume, in order

to maximise the profitability of the business.

Kevin and Margaret have continually worked closely with the Gala Group wholesaler in the area, H. Murphy and Co. from Enniscorthy.

It’s this personal service, combined with the support of Gala Retail Services, that has helped to support the business throughout the rebrand.

In terms of location, Frayne’s Gala is situated in a heavily populated area.

However, it is also an area with strong competition from other stores, both symbol groups and multiple retailers.

Given its niche as a community convenience shop, the revamp saw the grocery range pared down significantly, which was achieved using the wealth of information that Gala provided on the top selling brands in its shops around the country. Everything on the shelves in their new Gala shop is priced and placed to sell, sooner rather than later.

Strong Sales Growth

Since January of this year, the shop has seen growth in sales. The deli had been particularly hard hit by the end of the boom, as construction work in the town reduced rapidly.

The revamp saw the deli increase

in size, but the transformation has not just been physical: its offering has also been completely updated. The addition of a line of pizzas, along with a wide variety of hot and cold meals, has seen sales in the deli increase for the first time in a number of years.

There is also a greatly increased focus on fresh food beyond the deli, in areas like the well-stocked fruit and veg section, as well as in-store baked goods and fresh baked breads, pastries and cakes from top quality local producers, offering customers a little luxury at the right price. Twin displays, one incorporated into the deli and adjacent to coffee sales and an attractive freestanding wooden unit in the centre of the shop, help to showcase products in the best possible light and as prominently as possible.

“It has been a tough couple of years,” admits Kevin, “but with the tremendous support we have received from Gala and its staff, like Tom Hardiman, Gala Regional Manager, and the hard work that my dedicated team and the Group have put into maintaining standards and ensuring we have the correct mix of product for our customers, this has allowed us to undertake this investment and both Margaret and I are optimistic that we can keep this shop at the heart of the community as we move forward.”

FACT FILE Owner:

Kevin & Margaret Frayne

Location:

31, The Duffry, Enniscorthy, Co. Wexford

Size:

1,800 square feet

Number of Staff: 14, full time & part time Opening Hours: 07:00-23.00, Monday-Sunday

14|Retail News|April 2011|www.retailnews.ie

Retail News Interview

The

Newspaper

Man

Gavin O’Leary, Circulation Sales Manager, Irish Daily Star, on the value of the Irish newspaper sector, the issue of margins to retailers, the growth of free-sheets and the future for traditional media.

How valuable is the newspaper sector to Irish retailers?

The total annual value to retailers of the Daily and Sunday Newspaper market is currently €83m, with further €6m plus contributed annually from the provincial newspaper market.

Newspapers are the only products that change every single day, giving your customers a different reason to walk into your shop 364 days of the year.

is - as more then a tool that creates footfall in your stores, they are worth much more to your business than that.

There are no other products available today to my knowledge that can offer you on average 25% margin and are delivered today and fully returnable tomorrow with full credit for un-solds.

Key point of sale areas and valuable space should be reserved for titles that are delivering value to your bottom line at all times.

Irish consumers still love their newspapers, as borne out by the latest JNRS figures, which reveal that around 50% of Irish adults regularly read a daily paper. How can retailers take advantage of this fact?

The issue of margins is high on the agenda for retailers, with many newspaper publishers squeezing margins in recent years. What is your view on this?

It is important that retailers treat their newspapers - paid-for newspapers that

The Star has been constantly moving margins in a positive way for the

retailer in the last few years. We moved the RRP from €1.00 to €1.40 in a relatively short space of time. We always adjusted the cash margin to reflect our higher price, meaning the retailer always benefited from this.

That is why it’s worth considering what titles you give prominence to on the news-stand. Last year, The Star Newspaper Group delivered more than €10m profit to the retail sector in Ireland. The Star delivers on average 7.8 cent or almost one third more per copy than The Mirror, Sun and Mail.

So a newsagent would have to sell 100 copies of these UK titles to make the same revenue as 75 copies of The Star.

My view is: make the most of your shelf-space by promoting Irish daily titles over UK daily titles because they

www.retailnews.ie|April 2011|Retail News|15

Retail News Interview are delivering a much better margin to your bottom line.

How does the Irish Daily Star manage its relationship with retailers?

It is very important for The Star circulation team to have a close relationship with our retailers.

Communicating with the retailer allows us to find out what is going right for them and what isn’t working.

This way, we can resolve any problems, which in turn will benefit all parties involved; us, the retailer and most importantly, the reader. It is important to stress here that retailers must continue to be aware of their copy levels and the positioning of that copy within their store. By doing this, it makes it easier for the customer to make their buying decisions.

How has the establishment of COPPI (The Code of Practice for the Press Industry) changed the relationship between retailers and newspaper suppliers?

As one of the members on the Joint Industry Committee whose role it was to establish COPPI, I have first hand knowledge of how this process has been mutually beneficial to both parties. I wouldn’t say it has changed the relationship dramatically because it’s always been very good, but what I would say is that it has met all of its objectives, with the main one being a better understanding of each other’s business through a better means of communication and if complaints do occur from time to time, there is a forum available through the Review Body so these problems can be addressed.

The Review Body has responsibility for monitoring each performance area within the supply chain, so that accountability and enhanced performance management can be achieved. To aid this monitoring, the Review Body has compiled a ‘Compliance Analysis Form’ to ensure that complaints are reviewed and scrutinised within the industry.

The growth of free-sheets is a problem, as they deliver no revenue, yet many retailers feel the need to stock them to drive footfall in-store. Where do you stand on this issue?

I find it hard to understand why there is any space afforded on the newsstands or anywhere else in the store to the local free-sheets. Given that these titles are contributing no revenue, I’m surprised to see them taking up

“

I find it hard to understand why there is any space afforded on the news-stands or anywhere else in the store to the local free-sheets. Given that these titles are contributing no revenue, I’m surprised to see them taking up valuable shelf-space in a time when every extra cent spent in-store is precious. valuable shelf-space in a time when every extra cent spent in-store is precious. When you think about it, a bundle of 200 free-sheets equates to the same space as roughly 100 Stars, which is worth over €30 profit to a newsagent’s business.

What can retailers do to improve the lay-out/category management of their news-rack?

Layout and presentation are obviously very important to draw customers towards the news-stand. Also, prominent displays of headlines and displaying POS material where provided for promotional periods are also very important.

Keeping a close eye on returns levels and sell-outs is a big help.

Sometimes, outside influences in the shop’s area might dictate that supply should be reduced or increased accordingly. Examples of this may be the emergence of a new construction site or business opening. Also, seasonal factors should be taken into account.

The titles with the highest cash margins, be they newspapers or magazines, should be given greatest prominence.

With newspaper sales continuing to decline, as consumers increasingly utilise digital media either alongside or instead of traditional media outlets, how do you see the future of the newspaper business in Ireland?

As you mentioned, Irish consumers still love their newspapers, as borne out by the latest JNRS figures, which reveal that around 50% of Irish adults regularly read a daily paper.

”

At The Star, we believe that one of the biggest changes currently facing the newspaper industry is the way in which people consume news. Online and smart phones allow people to consume news all through the day, which reflects how people have become more mobile and less routine in both their work and leisure.

A common misconception out there is that other news media such as the internet have contributed to the decline of newspaper sales in the last few years: it must be remembered that the internet has been around a long time now, during which the newspaper industry has seen a record growth.

We believe that people will continue to want to consume news and features both online and by reading traditional newspapers. However, one big advantage we have as a newspaper is that our product is portable and easy to browse, as and where the reader wants.

Another key change that newspapers now face is reduced spending by the reader. Unfortunately, some of our former readers have lost their jobs and are redirecting any income available to their more immediate needs. Also, people are now buying one newspaper instead of two or three. So our job is to make sure that the one title they do pick up is The Star. We have proven that quality always wins over price by increasing our market share in what can be deemed as a challenging retail environment. The good news for retailers is optimum retailer profits when The Star increases their market share due to The Star’s superior newspaper margins.

16|Retail News|April 2011|www.retailnews.ie

News Rack Motoring magazine titles are showing steady growth, particularly in the cars, cycling and motorcycling categories, writes Karen Meenan.

Driving

Profits The classic car market is extremely buoyant, and sales of titles like Classic American are on the rise.

THE cover price of women’s weekly titles has declined substantially over the last year or so. This time last year, many titles were selling for between €2 and €2.50. Now, many titles are coming in from the UK price flashed at 50p, so you have no option but to sell those magazines at around a euro – your sales volume has remained almost the same as last year, but your sales value has more than halved.

Women’s weekly titles are still very important and account for 50% of all magazine sales in Ireland but that said, if half of your sales are worth less than half than this time last year, it is time to start looking on your magazine shelves for clever ways to earn more net profit in this department.

Men’s titles are still showing some steady growth and the most important thing to remember about the men’s category is that magazines are not as price sensitive, and many of these titles retail for around a fiver: so you only really have to sell one male title to make the same net profit as five women’s titles.

Men’s titles can often be confused with Adult titles or Top Shelf magazines but there are lots of other

titles which are primarily bought by men. This month, I have tried to list many titles that might not already be household names and might never have made it as far as your magazine stand. As you are having a re-think about the stand and the value of men’s titles, think again, but this time put your thoughts on wheels…

The Bicycle Phenomenon

Have you noticed how many people are back on bicycles again? There are a number of reasons given for the surge in popularity of the bicycle.

Some say that the fast rising price of fuel has finally pushed the car driver off four wheels and onto two.

Others say that there has never been an easier way to get fit with the popularity of ride-to-work schemes, many businesses even paying for bicycles to overcome the shortage of car parking in city and town centres.

For others, the bicycle is just an efficient way of getting healthy while getting from pillar to post. No matter what the reason, cycling and triathlon and leisure pursuits in general have all seen an increase in magazine sales.

Cycling Active magazine is a perfect monthly guide for the entry level cyclist and continues to show sales growth just one year after launch.

This title provides essential reading for all levels of interest, from the serious sports enthusiast to the less committed fair weather ‘weekend warrior’. A typical issue will feature equipment reviews, route guides, fitness advice, riding technique and a ‘what’s on’ guide.

The interest in cycling titles peaks in June-September, with the professional racing season peaking in June with the world’s largest cycle race, the Tour de France. 220 Triathlon is a steady seller year round and because it lists all the fixtures and meets, is a very popular title amongst triathletes.

For those who like to get out and about on two wheels without the physical exertion needed for cycling, popular titles include Scootering and Classic Scooterist Scene. Scootering is the biggest and best Scootering magazine which features events, reviews, music and a massive scooter trader. Scooterist Scene brings the nostalgia of classic scooters to life.

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Titles like Scootering, Classic Racer and Classic Motorcycle Mechanics offer high profit margin opportunities.

Motorcycle Magazines

A step-up again is the whole world of motorcycles: motorcyclists are very loyal purchasers of Motor Cycle News, Used Bike Guide, Two Wheels Only and Classic Bike Guide. For many motorbike enthusiasts, the week is not complete without the magazine fix! Classic Bike Guide is a practical, down-to-earth magazine that gets to the heart of the classic world. This title features a mix of features, reviews, bike tests and event reports and is a must-read for every classic restorer.

Classic Racer is a magazine where legends truly live on! This relives tales from those who made the sport great and is written by those classic racers themselves! Practical Sportsbikes is the latest launch which sits on the magazine stand between Motorcycling Performance and the growing Classics

Market. This new launch is aimed at 35-65 year old males, and takes a hands-on approach to motorcycling, offering maintenance tips, technical knowledge and practical advice on the greatest motorbikes from the ‘70s, ‘80s and ‘90s.

Car Magazines

Irish Racer Magazine has an extremely loyal following around the country.

Classic Bike Guide has a growing fan-base.

of lusting after and researching their next bike. This title showcases every new bike for sale, by manufacturer, in a comprehensive, quarterly magazine.

The high cover prices of What Bike? and other titles in this section, dominated by male interest, means that you maintain net profit in a category too often driven down by special offers and bumper packs so common in the women’s interest category.

Classic Motorcycle Mechanics is a perfect guide for restoration, riding and rebuilding classic bikes. This title reviews and road tests readers’ machines every month and has a very loyal following with ‘70s ‘80s and ‘90s bike owners. Bike Trader is dedicated to the buying and selling of motorbikes and all related products. It features new and used bike reviews every issue and is on sale fortnightly.

What Bike? is the definitive guide to help consumers through the process

Car magazines have taken a hit in the last few years – two of the most popular car titles, Auto Trader and Car Buyers Guide, have seen the challenge of working side by side with the internet for would-be car buyers.

The sales of car titles have started to recover, however, and in particular the classic cars market is steady and growing.

Classic American is a title dedicated to those who love and dream the American Dream, even if Route 66 is still a Lotto dream away… Classic cars still have an extremely devout following and customers are very brand loyal. The classic car market is growing – sales are up 50%, so keep a close eye on the range of titles available in this sub-category.

Classic Car Buyer is packed with the latest news, detailed buyers guides and special features, including auction reports and events. In collaboration with the UK’s most popular classic car website, www.carandclassic.co.uk, Kelsey Publishing has the biggest selection of classic cars for sale in the UK. Classic Car Mart is a monthly title which has nearly 200 pages packed with entertaining and informative features.

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The popular Irish Vintage Scene.

It has buying guides, road tests, a sprinkling of archive material and nostalgia and loads of essential advice to buying and running a classic car.

4x4 magazine is the market leader in automotive off-roading, and Land Rover World is a specialist title that offers in-depth news and reviews on the Land Rover and off-road scene from around the globe.

Nostalgic titles like Volksworld Camper & Bus continue to find readers who hark back to summers in the ‘70s.

Sales increase by over 40% during the key season of June-September, with many consumers buying or renting Camper Vans for music festivals in the summer. Camper Vans, and in particular VW camper vans, have become a very recent phenomenon of the ‘staycation’ or cheap home holidays.

Auto Trader is Ireland’s biggest selling motoring magazine. The first port of call for anyone buying or selling a car in Ireland, Ireland’s Auto Trader is on sale every Thursday with a cover price of €4. With two regional editions in the Republic of Ireland, Auto Trader gives readers the best deals in their area. Car Buyers Guide is another title which also has a wonderful website. Auto Ireland is an annual magazine, offering motoring news and reviews with a flavour of international motorsports. It features new model updates, comprehensive price lists and guides for motoring enthusiasts and new car buyers.

Farming Magazines

And finally, a strange fact: 30% of all farming magazine titles sold in the UK and Ireland are sold in the Republic of Ireland! The UK has a population of

62m and we have just 4m, so that is an amazing statistic. If you have a shop in a rural location, are you stocking a full range of farming titles? You could be missing out on lots of very loyal magazine customers!

Tractor & Machinery is the world’s best-selling magazine for all tractor enthusiasts, collectors and restorers.

With the combined enthusiasm of the best tractor experts in the world, the magazine has gone from strength to strength, and maintains its position as the market leader, publishing in excess of 200 pages monthly.

Classic Tractor is the only magazine dedicated to the classic era of tractors, which is defined as those manufactured post 1960, and plays an extremely important part in the used tractor market. This has a rural bias but also performs very well in petrol forecourt outlets.

Trader Truck & Plant Trader is the number one title in the trucking sector, while Bike Trader is dedicated to the buying and selling of motorbikes and all related products.

Classic Tractor is the only magazine dedicated to the classic era of tractors.

Tractor and Farm Trader Magazine is a full-colour magazine dedicated to providing a high quality, informative monthly publication. Stationary Engine, Old Tractor and Classic Massey and Ferguson Enthusiast are more titles bought by collectors, owners, and enthusiasts, both young and not so young alike!

Trucking Titles

Truck & Plant Trader is the number one title in the trucking sector in terms of RSV. On sale weekly, it is aimed primarily at owner drivers, and features hundreds of LGVs, trailers, trucks, municipals, dismantlers & plant. This title also sells very well in forecourt stores.

The Newsagency is a tricky category to manage, and can be very frustrating at times – we all accept that. But don’t lose the opportunity to make more sales just because you have found this category hard to manage in the past. So have a new look at your men’s section and see what titles on wheels will earn you more net profit today!

THE DAILY PROFIT If you need help to grow sales and reduce losses you can contact Karen Meenan at The Daily Profit - ring 086 6027711 or email karen.meenan@ dailyprofit.ie or visit our brand new website – www.thedailyprofit.biz

www.retailnews.ie|April 2011|Retail News|19

Drinks News Katie Taylor Stars for Lucozade Sport THREE times World Amateur Boxing champion, Katie Taylor stars in a brand new UK and Ireland ad campaign for Lucozade Sport. Katie stars alongside Brit Award winning artist, Tinie Tempah and Blink 182 drummer, Travis Barker. The unlikely trio join forces to perform a special Lucozade remix of Tinie’s ‘Simply Unstoppable’ to launch Lucozade’s new ‘YES’ campaign and demonstrate that when different forms of energy collide, great things happen. The 90-second advert is the first of three music-led films to be released by Lucozade this year which will celebrate ‘YES’ moments by capturing energy in inspirational and infectious forms.

NEW SCANNER DETECTS FAKE WINE & SPIRITS BOTTLES RESEARCHERS from the University of Leicester and De Montfort University have developed a handheld device for detecting counterfeit wine and spirit bottles with a scan of the packaging. Originally developed to detect counterfeit medicines, the technology is now being adapted to meet the needs of alcoholic drink makers, using a technique that detects differences between the characteristics of light reflected from printed packaging.

Top Awards for Irish Distillers Pernod Ricard IRISH Distillers Pernod Ricard is celebrating the success of its premium whiskey portfolio after achieving four Double Gold and one Gold medal at the internationally renowned San Francisco World Spirit Competition 2011. Jameson Rarest Vintage Reserve

COOLEY IN US GOLD RUSH COOLEY Distillery continued its phenomenal strike rate on the international circuit by claiming 12 gold medals at the San Francisco World Spirits Competition. Cooley won the top award, the coveted Double Gold Medal for its Connemara Cask Strength Peated Single Malt, Tyrconnell 10 Year Old Madeira Finish Single Malt and Tyrconnell 10 Year Old Port Finish Single Malt, and topped it off with a Double Gold Medal and Best in Class for the Michael Collins 10 Year Old Single Malt it produces for US importer Sidney Frank. In addition, Cooley collected Gold Medals for its Kilbeggan 15 Year Old, its Tyrconnell 10 Year Old Sherry Finish Single Malt and for two further expressions of its Connemara brand. “This latest success proves that Cooley is consistently producing some of the finest whiskeys in the world today,” noted Jack Teeling, Managing Director of Cooley Distillery.

picked up a Double Gold in the Blended Irish Whiskey category, while Jameson 12 Year Old Special Reserve won Gold. Redbreast won Double Gold for both its 12 Year Old and 15 Year Old expressions, while Powers 12 Year Old also picked up a Double Gold medal. “To achieve five top awards at this prestigious competition is a huge honour and testament to the skill and dedication of our Master Distillers at the Midleton Distillery,” said CEO and Chairman of Irish Distillers Pernod Ricard, Alex Ricard.

HEALTH WARNINGS TO APPEAR ON ALCOHOL PACKAGING NEW legislation is reportedly on the way which will see health warnings appear on bottles, cans and all promotional material for wines, beers and spirits. The labels are expected to carry stark warnings of the dangers of over-consumption of alcohol. Minister for Health, James Reilly TD, recently noted how his Department were developing legislative proposals to provide for the inclusion of health advice and/or warnings on alcohol packaging and promotional material, “providing advice for pregnant women on the dangers of consuming alcohol and providing other health information to the consumer at the point of consumption”.

Veuve Clicquot Business Woman of the Year COLETTE Twomey, Managing Director of Clonakilty Black Pudding, has been chosen as the 2011 recipient of the Veuve Clicquot Business Woman of the Year Award. Celebrating its 30th anniversary in Ireland this year, the Veuve Clicquot Business Woman of the Year Award has recognised and rewarded women around the globe who have succeeded in the business world and who personify the characteristics of Madame Clicquot, the founder of the great Veuve Clicquot champagne house.

In her professional career, Colette has shown great entrepreneurial spirit and innovation, as well as displaying leadership, vision, courage and charisma, and was unanimously chosen by this year’s judging panel. In her capacity as the award recipient, Colette will become a brand ambassador for Veuve Clicquot in Ireland and will attend the International Veuve Clicquot Business Woman Award International Forum, which will take place in France in October.

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News

Tesco Under Fire Over Price Promotion RETAILERS are being urged to conduct transparent marketing campaigns, after Tesco was accused of advertising price reductions on products it had increased in price only a few weeks beforehand. In an interview with RETAIL NEWS, Dermott Jewell, Chief Executive of the Consumers Association of Ireland, said consumers would appreciate promotions in which the full truth behind prices is laid bare.

“If we think about it as a presidential campaign: who’s going to be the most honest?” he said. “It would be refreshing if you had an advertisement saying, ‘it’s impossible for us to reduce all our prices, but we will be reducing some of them for a guaranteed two weeks’. If that was beside an ad that said, ‘We can’t be beaten on price’, I know which one people would go to.”

Mairéad McGuinness, MEP and food policy expert, said that although the European Commission is investigating ways in which to create greater

“

Mairéad McGuinness, MEP. transparency in the supply chain, a completely transparent retail price promotion is unlikely to happen: “It’s very idealistic, but transparency is a bit like salt on your meal. A little of it is really good and enhances the flavour, but if you have too much, you will destroy it.

“To some extent, absolute transparency would require us to know the price at which

This is a great opportunity to change the whole approach and add an additional level of respect for retail.

”

goods are bought and then the price at which we buy them in the supermarket,” she continued. “That’s something we’re probably never going to know. But if we have this healthy competition between retailers, then customers should really benefit. It’s a dark art.”

The Tesco controversy began in March, 2011, when the retailer announced a drop in price of 1,000 items in its shelves. Barely a day after Tesco’s promotion was announced, The Irish Times revealed that some of its products were more expensive than at the start of the year.

According to the Irish Times, Tropicana Orange Juice cost €2.28 at the end of December 2010. This price went up to €2.59 at the end of January and was subsequently reduced to €2.49. Flahavan’s Progress Oatlets fell to €1.99 in the promotion, but had cost €1.95 at the start of the year.

Tesco admitted it had increased around 250 products at the start of the year, which were incorporated into the price saving promotion.

Discovering that prices can fluctuate wildly may have shocked consumers, but it comes as no surprise to Dermott Jewell: “It happens all the time.

It’s not a shock at all.”

Certain products, such as fresh and seasonal produce, naturally fluctuate in price.

Packaged and ambient goods usually entail longer price

contracts: anything up to 12 months. But in the current climate, there is increased pressure on pricing.

After their price promotion turned sour, Tesco blamed some price hikes on suppliers.

However, suppliers say they pay the price for grocery wars.

“The problem is, on occasions you get unexpected demands, which is entering into the area of unfair commercial practices,” Paul Kelly, Director of Food and Drink Industry Ireland (FDII), told RETAIL NEWS. Do these price fluctuations manifest in other ways for suppliers, such as deals being scrapped, at the last minute, and product lines dropped?

“There can be a degree of that,” responded Kelly. “That’s why

Dermott Jewell, Chief Executive of the Consumers Association of Ireland.

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News

Landmark Ruling for Alcohol Retailers

we have been calling for a code of practice. You often get contractual terms that aren’t adhered to.”

The Irish grocery market is unlikely to get any less competitive. “As you can see from the advertising across all of the newspapers, there is a huge battle for the consumer’s euro,” said McGuinness. “That’s because people are being more cautious about where and how they shop, and everybody wants to keep their market share.”

“A Tesco spokesperson recently said ‘We [supermarkets] watch each other like hawks’,” said Jewell.

“You’re inclined to believe that their strategy is very limited.

It’s not competitive. It’s a watching, waiting strategy, to see who breaks rank. But there’s no great challenge within the structure.”

In 2011, price promotions appear to be less about specific products, and more about which retailer is perceived to have the lowest prices. It might be all smoke and mirrors, but Jewell believes that a little honesty can go along way: “This is an opportunity to be seen to be different, and to right some of the wrongs that other retailers are doing. This is a great opportunity to change the whole approach and add an additional level of respect for retail.”

OUT-OF-STOCKS COSTING RETAILERS €4 BILLION ANNUALLY OUT-of-stock products cost the retail industry €4 billion every year. A new report, Improving On-Shelf Availability, suggests around 8.3% of fast moving consumer goods (FMCG) products are routinely out-of-stock.

“The issue of products not being available on-shelf has changed little in the last 20 years, despite the billions that have been invested in state-of-the-art distribution centres and the ability to track stock by the second and minute, until it reaches its final destination,” said Andrew Mitchell, International Sales Director for Technology Services, SymphonyIRI Group, who conducted the report.

Running out of products can significantly impact a retailer’s business, argues Mitchell. Customers might not only switch brands, but they may tell other customers or stop shopping in a store altogether.

ALCOHOL sellers in Ireland have no duty of care obligation for customers who drink to excess and injure themselves or others, a High Court judge has decided. The case, Mary Flanagan v.

Mary Houlihan and Concepta and Seamus Kelly, is the first time the issue has been examined in Ireland. The court’s decision found that a customer who drinks excessively is at fault, instead of the publican/retailer who served them.

Although the decision could have ramifications for many areas of the alcohol sector, off-licences will remain largely unaffected, since customers cannot drink on their premises.

“We’re entitled not to serve customers if we believe they are intoxicated,” Jim McCabe, Chairman of the National Off Licence Association (NOffLA) Chairman, told RETAIL NEWS. “It’s a little bit different from duty of care, in which the publican or restaurant owner has to make sure somebody they have served is safe when they leave. In an off-licence, a person may arrive intoxicated. By not serving the person, we’ve done our duty.

We’re not obliged to follow them and see where they’re going.

The duty of care belongs to somebody else.”

The High Court case upheld a legal principle that people, whether drunk or sober, are responsible for their own actions.

The judge conceded, however, that if a customer was so intoxicated that he or she was clearly unable to look after themselves, then there would be a duty of care.

“We [off-licences] certainly have a moral responsibility,” McCabe said. “If someone was staggering all over the shop and then they left, you’d have to make sure they weren’t getting into a car. But that’s not a duty of care.”

Jim McCabe, Chairman of the National Off Licence Association.

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News

SuperValu to Create 400 New Jobs SUPERVALU will add 400 new jobs this year to its 15,000 workforce, with the opening of two new stores and extending and refurbishing a further 34, in an investment programme worth in excess of €25m. The new stores will be located at Mountmellick, Co. Laois and Manorhamilton, Co Leitrim.

This follows SuperValu’s announcement to invest €260m in bringing additional value to consumers in 2011, with the launch of the second phase of its ‘New Ways To Save Every Day’ campaign, which is being delivered without sacrificing SuperValu’s commitment to Irish suppliers or jobs.

This campaign is aimed at making it easy for shoppers to save on average €35 per week, to help hard pressed families

claw back some of the €60 they have lost each week due to the recent austerity measures and increased household costs.

In addition to these savings, SuperValu’s Real Rewards loyalty card holders can achieve a further 5% discount on their purchases.

Speaking at SuperValu’s national conference in Killarney, which was attended by over 500 retail partners, Martin Kelleher, Managing Director, SuperValu, said that the company had recorded €2.1 billion in sales in 2010.

In addition, he also revealed that SuperValu continues to perform well, with its market share growing from 19.9% at the end of 2010 to 20.2% currently, while the brand serves in excess of two million customers every week.

New Chief Executive at NDC THE National Dairy Council has announced the appointment of Zoe Kavanagh (pictured) as Chief Executive.

Kavanagh has worked with PepsiCo for over 16 years and was most recently General Manager (Ireland-Beverages) for almost four years.

Announcing the appointment, Dominic Cronin, Chairman of The National Dairy Council,

said that the new CEO brings to the NDC a unique level of commercial and marketing experience spanning the brand, consumer and foodservice sectors: “We believe that her strong focus of understanding consumers will be a big asset for the NDC and will contribute significantly to our strategic direction.”

Planning Ahead

Pictured at the SuperValu annual conference in The Malton Hotel, Killarney, are (l-r): Ciaran Levis, Sales Director, SuperValu; Alan Condron, Chairman, SuperValu Council, and Martin Kelleher, Managing Director, SuperValu.

A MAJOR retail development in Miltown Malbay has been refused after the council stated it would impact on the viability and vitality of the main street in the West Clare town. The proposed development was 4,153 square metres in floor space, consisting of a supermarket, café and off-license.

There’s better news for an €80m retail development in Sligo Town Centre. The project, located at the Wine Street Car Park, is expected to include Tesco and Dunnes Stores, creating up to 500 jobs. Tesco are also trying to enter the Cork town of Ballincollig, with a proposal to open a 70,000 square feet store. It has been argued, however, that Ballincollig could be reaching retail saturation point. The town already contains a large Dunnes Stores, two Aldis, two SuperValus, and a Lidl.

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Tenants Fight Back in Rent Review Initiative A GOVERNMENT plan to end upwards-only rent reviews will be to the benefit of all grocery retailers, the initiative’s main lobbyist has told RETAIL NEWS. David Fitzsimons, Chief Executive of Retail Excellence Ireland (REI), said a change in rent laws will help “a lot of the symbol groups, especially the ones who opened in more recent times, when they signed up to aggressive rents. They’ve probably gone through one aggressive rent review, which has more than doubled what they’re paying.”

REI contend that the initiative, proposed by Minister for Justice, Alan Shatter TD, could create 20,000 new retail jobs. The legislation might also take place sooner, rather than later. Fitzsimons hopes the legislation will be enacted

by July and come in effect by autumn, of this year.

In a televised speech, Shatter cited the NAMA (National Asset Management Agency) legislation as an example of retrospective intervention by government in matters for the good of the country. However, NAMA are reported to have a different opinion on the matter.

In a letter to the Department of Finance, the Agency expressed concerns that proposed changes to Ireland’s rent legislation could “significantly impact” the country’s ability to repay its loans.

But NAMA are unlikely to scupper the new rent legislation, said Fitzsimons.

“The Government are fully cognisant there is going to be a detrimental effect in terms of yield for the some of the NAMA owned property. But on the plus side, the Government are also cognisant that while NAMA is the largest landlord in the country, they’re also the largest tenant, and they will also enjoy new legislation, as all the other tenants will.”

NAMA also expressed concerns that retrospective

David Fitzsimons, Chief Executive of Retail Excellence Ireland. rent decreases could damage Ireland’s perception abroad, hampering future investment in the Irish market. Fitzsimons, however, countered that there has been no investment of note in the Irish commercial property market for the last eight years.

“The property market overheated between the years 2000 and 2007: rents increased by 240%,” he said. “The consumer price index rose by 30%. To any objective observer, the commercial property market ran ahead of itself. The legislation will clear the market, allowing market-led commercial property values and rent levels.

Without the legislation, there would be an unwillingness to invest. With the legislation, potential investors will know the market is enjoying tenable rent levels with tenants that are going to remain in existence.”

Upward-only rent reviews have contributed to the loss of over 50,000 jobs in the retail sector since 2008, he added. A new REI survey indicates that 70% of retailers do not expect a return to year-on-year growth until Q4 2011. REI members have also seen sales volumes fall by an average of 30% since 2007.

Retailers Utilise Social Networks SUPERVALU are among the retailers using a new Facebook initiative to get customers into their stores. Facebook Deals, a mobile application, allows smartphone users to avail of deals upon entering a SuperValu store: information that is then forwarded on to their friends.

As part of SuperValu’s involvement, the first 50 Facebook Deal users who checked into each of the supermarket’s 24 Dublin stores received a €10 shopping voucher. Future initiatives include special offers, rewards and discounts.

People’s interaction with shops and brands is broadcast to their friends on the social network. The average Facebook user now has 130 friends.

“There are over 200m monthly active Facebook mobile users looking to discover what is happening around them when they are out and about,” Rick Kelley, Director of Mid Market sales at Facebook, told RETAIL NEWS. “There are 2m active monthly users for businesses in Ireland to engage with.

We’ve found that the most effective way for people to learn about new things is through their friends and the community around them. Online marketing has long promised that wordof-mouth will drive people to brick and mortar places but this promise hasn’t quite been fulfilled.”

Kelley said that Deals are free at the moment - a business can create Deals on Facebook. “Any other interested companies should contact their account managers,” he said.

Irish Grocery Market Slows THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending March 20, 2011, show a dramatic response by consumers to food price inflation. Market growth dipped to 0.8% compared with 1.6% last month. However, growth continued despite price inflation of 5.3%.

In a bid to control spending, shoppers cut back on the amount of groceries they bought this period, with the average household reducing the amount of goods it purchased by 4%.

“The biggest impact of the cutbacks was felt in the fresh and chilled sector,” explained David Berry, Kantar Worldpanel Ireland, “with the average household buying 4.7% fewer fresh or chilled products than it was three months ago.

This shift towards reduced basket size demonstrates that consumers are cutting back where they can.”

In addition to reducing the amount they buy, shoppers also continued to trade down to cheaper products this month.

Consequently, own brand products now account for 35% of grocery spend, compared with only 33.5% last year.

“Unsurprisingly there were

mixed performances from the retailers this month, with only Tesco, Aldi and Lidl growing ahead of the market,” Berry continued. “Value conscious shoppers continued to switch more of their grocery spend to the German discounters, with Aldi growing its share to 4% compared to 3.2% a year ago and Lidl increasing its share from 5.6% in 2010 to 5.9%.

Tesco benefited from its recent store openings and increased its share to 27.2%.”

Elsewhere, SuperValu posted a slight drop in market share, falling from 20.1% to 19.8% in the past 12 months.

However, SuperValu’s recent announcement of future store openings demonstrates its investment in building its market share, suggesting the outlook for the retailer is positive, according to Berry.

Dunnes Stores continued to perform behind the market but its sales stabilised this month, following a prolonged decline throughout 2010, as it retained its 23.3% share of the market from last month.

Overall, grocery inflation remained at 5.3% for the 12 week ending period 20 March 2011.

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News

SuperValu of Controls on Food the Year 2011 Imports from Japan McINERNEY’S SuperValu, located in the heart of Loughrea, Co. Galway, has been named SuperValu of the Year for 2011. The National Award was presented to store owners Ger and Michael McInerney by Martin Kelleher, SuperValu Managing Director, Ciaran Levis, SuperValu Sales Director and Clive Ryan, General Manager, eircom Business, competition sponsors.

Over 192 SuperValu stores throughout the Republic of Ireland were adjudicated by independent competition judge, Paul O’Sullivan, Director, Faculty of Business at Dublin Institute of Technology. These audits focused on customer care, store presentation, fresh food offering, product range, operational standards, store hygiene and local community involvement.

Commenting on the award, store owner Michael McInerney paid tribute to his team and said that their constant dedication and professional approach was what won the award for the Galway store: “I believe that the greatest asset of any business is the people who work in it and our business is as good as it is today due to the tremendous team in my store. Our dedicated work force all strive towards one goal, which is providing the absolute best value, service and range for our customers.”

“McInerney’s SuperValu has superb food credentials and is well known in Loughrea for its fresh meat, its BIM

accredited seafood counter, its extensive bakery, deli and olive bar range and a fresh food selection which is unrivalled in the market,” said Martin Kelleher, Managing Director, SuperValu. “It is a perfect example of a supermarket that continuously goes that extra mile by supporting their local producers and providing its customers with a product range unmatched by any competitor in the market. This award is a testament to the hard work and absolute commitment of the team at McInerney’s, who always strive to provide their customers with a unique shopping experience.”

Speaking at the awards ceremony, Clive Ryan, General Manager, eircom Business, said, “We are delighted to have been part of the SuperValu Store of the Year Awards since 2007.

We commend the investment SuperValu has undertaken in its brands and proposition, and the outstanding innovation that the SuperValu retail partners have demonstrated, especially in such challenging times. All of the award winners have demonstrated, excellence in establishing their own success, and a solid foundation for the future of SuperValu and indigenous grocery retailing in Ireland. The result that the McInerney’s have achieved is a stellar example of this. We at eircom are very proud to be associated with, and to continue to support, the success of the SuperValu independent retailer community.”

Clive Ryan, General Manager, Eircom, and Ciaran Levis, SuperValu Sales Director, are pictured presenting the SuperValu of the Year 2011 Award to store owner Michael McInerney and store manager, Clement Connolly, from SuperValu, Loughrea.

THE Food Safety of Authority of Ireland (FSAI) has stated that in line with European Union measures to limit possible risks to food safety, Ireland will be adopting controls on imports of food and feed from certain localities in Japan (Fukushima, Gunma, Ibaraki, Tochigi, Miyagi, Yamagata, Niigata, Nagano, Yamanashi, Saitama, Tokyo and Chiba), where production could be affected by the incident at the Fukushima Daiichi nuclear power plant.

According to Professor Alan Professor Alan Reilly, Chief Executive, FSAI. Reilly, Chief Executive, FSAI, at a meeting of the Standing Committee on the Food Chain and Animal Health, EU Member States endorsed a Commission proposal to impose special import conditions. A new regulation will apply to all feedstuffs and foodstuffs originating in or consigned from Japan, with the exclusion of products which have been harvested and/or processed before March 11, 2011.

“A range of measures will apply to all feed and food originating in or consigned from 12 localities of Japan, including the four most affected by the accident,” said Professor Reilly.

“All products from these localities will have to be tested before leaving Japan and will be subject to random testing in the EU. Feed and food products from the remaining 35 localities will have to be accompanied by a declaration stating the locality of origin and will be randomly tested upon arrival in the EU. Ireland has very few direct imports from Japan and will be aligned with other Member States in relation to our monitoring of these foodstuffs.”

Australia Bans Tobacco Branding THE ever-increasing legislation on cigarettes and tobacco products took a new twist in Australia, recently, as it became the first country to ban logos and branding on packets. The proposed new packaging will be a uniform olive green colour, with brand names in a standard font and size. It will carry no logos, although it will feature graphic images of the damage caused by smoking, such as diseased lungs. Indeed, the packaging was consumer-tested on smokers and the least appealing packaging was chosen. Australia’s tobacco industry is expected to challenge the new laws in court on the grounds that they will deprive tobacco companies of their intellectual property rights, while also making it easier to counterfeit cigarettes. The new law is due to come into effect on January 1 next year.

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Persil . . . Dirt is Good

Small & Mighty Relaunch

Persil Small & Mighty concentrated liquid is being re-launched this month with five new ingredients, which will deliver unbeatable cleaning in just 30 minutes, and deliver added value to the sector.

PERSIL is Ireland’s favourite laundry detergent and is the clear leader in a market that is now worth around €78m annually.

Despite the economic downturn, consumers are still looking for the best solutions for their laundry, coupled with the best value. Value is not always just about price and giving consumers real product benefits at a keen price offers real value. Persil Small & Mighty concentrated liquid, the number one brand in the growing liquid detergent sector, is being re-launched in April 2011 with five new ingredients, which will deliver unbeatable cleaning in just 30 minutes.

Attractive Proposition to Consumers

Normal washing cycles can take a long time, but sometimes consumers need to be able to do their washing more quickly and yet still get a brilliant deep down cleaning.

The new improved product will deliver better cleaning than all of its current competitors in the market. The packs will have new graphic designs and will also include a dosing device to enable dosing in the washing machine drum and drawer.

The re-launch of Persil Small & Mighty, with its new unbeatable cleaning formulation, will be a very attractive

The new Persil Small & Mighty will be fully supported by a major advertising and promotional campaign starting in May.

proposition to consumers and will serve to further drive the migration to liquids in the Irish market. The re-launch will drive category growth by trading consumers up to higher value products which perform better and have more flexible dosing.

Reduced Environmental Impact

Unilever launched their Cleaner Planet Plan in 2008, their commitment to the laundry category to reduce their environmental impact. Key innovations like Persil Small & Mighty with its concentrated format, smaller packs and less energy used in its manufacturing, are at the forefront of Unilever’s sustainability agenda. The new Persil, with its unbeatable cleaning in 30 minutes, allows for quicker, colder washing of full loads, which saves energy and saves consumers money on energy bills. Small actions can make a big difference and we can all play our part in making a big difference to the planet we live on.

The new Persil Small & Mighty will be available nationwide in 18, 28 and 54 wash pack sizes and will be fully supported by a major advertising and promotional campaign starting in May.

PERSIL MILESTONES • The Persil brand was created in Germany in 1903, when Professor Herman Giessler and Dr Herman Bauer from Stuttgart produced the world’s first soap powder with a bleaching agent.

• The name ‘Persil’ was derived from the ingredients ‘perborate’ and ‘silicate’ • Persil was the first washing powder to show a man doing the washing in a TV advert.

• Unilever introduced Persil’s first Biological detergent variant in 1983.

• In 1998, Persil introduced the very first tablets, followed by the launch of Persil Liquid Capsules in 2001.

• Persil liquids were replaced with Persil liquigels in 2003. The gel pours like a liquid and works through the fibres for a really deep clean.

• Persil Small & Mighty concentrated liquids were launched in May 2007.

Making more of Irish Seafood

www.bim.ie

To add value to your business: Contact: BIM Seafood Development Centre Clogheen Road, Clonakilty, Co. Cork.

Email SDC@bim.ie Tel 01 2144280

Equipment Asset Finance

www.retailnews.ie|April 2011|Retail News|23

Ice Cream

Ice & Easy!

Irish consumers’ love affair with ice cream shows no signs of abating, with a host of new products guaranteed to shake up the market.

IRISH consumers have always loved ice cream and this trend shows no signs of abating. Indeed, ice cream per capita consumption in Ireland, at six litres, is the third highest in Europe, despite the vagaries of the weather – only Sweden and Finland have higher per capita consumption!

Of course, the ice cream sector, like every part of the grocery business, has been affected by the recession, as many consumers are turning to own label products and multi-packs. However, the ice cream market has proved pretty recessionresilient, with Euromonitor reporting a decline of less than 1% in value terms in 2010.

The Irish ice cream market is valued at approx €118.7m (excl.

Dunnes Stores) and can be broken down into two main categories: - Out of home impulse singles (e.g.

Iceberger, Cornetto, Magnum), which is worth €56.4m.

- Take home (e.g. HB pint brick), which is worth €56m.

Despite the growth of own label product, Irish consumers still love their favourite brands. Indeed, HB, from Unilever Ireland, is Ireland’s number one ice cream brand, with 73.9% value and 76.4% volume share (Source: ACNielsen, Total Market excl.

Dunnes Stores, Value, MAT Feb 20, 2011). Indeed, Unilever claims a value share of 79.3% of out-of-home impulse singles, including the top 10 impulse ice cream brands in Ireland, and a 69.3% share of take-home ice cream.

New Magnum Ghana is made with specially selected cocoa beans sourced from Rainforest Alliance Certified farms in Ghana.

HB

Innovation plays a key role in keeping consumers excited about the ice cream category. 2011 looks set to one of HB’s best years yet with an extremely strong range of NPD to tantalise everyone taste buds.

Magnum ice cream is the number one adult indulgent ice cream brand in the impulse sector, with 55% market share (Source: ACNielsen). This year sees the launch of new Magnum Ghana, as part of its new Rainforest Alliance Certified Magnum Cocoa range, which is made with specially selected cocoa beans sourced from Rainforest Alliance Certified farms in Ghana. New Magnum Ghana contains a generous layer of milk chocolate – made with 36% cocoa with the exquisite hazelnut ice cream and delicate milk chocolate sauce beneath.

“New Magnum Ghana really is a completely new taste and is set to wow Magnum fans this season,”

says Colette Coughlan, Brand Manager, Magnum. “The delicious mix of ingredients, together with the decadent cracking chocolate, really sets this product apart for the ultimate indulgence. Enjoying a small pleasure should be part of daily life, and we believe Magnum and the new Magnum Ghana is the perfect way to treat yourself to a little pleasure!”

The launch will be supported by a heavyweight marketing communication plan, the highlight of which will be a dedicated TV campaign, complemented by outdoor, in-store activity and a PR campaign.

This month also sees a heavyweight Magnum on-pack promotion, entitled ‘Win day after day of pure pleasure’, with one pleasure experience to be won each day until the end of June, with another pleasure experience up for grabs each week from the start of July until the end of September. Find out more at www.magnum.ie.

24|Retail News|April 2011|www.retailnews.ie

Ice Cream

HB is relaunching Solero ice cream with a new, improved formulation, an enhanced nutritional profile, new look and real fruit pieces.

2011 brings more excitement to Cornetto Enigma with the launch of Cornetto Enigma Chocolate &

2011 sees two exciting new additions to the 1 Litre Hazelbrook Farm range Chocolaloco and Frantic Fudge.

Caramel, with indulgent caramel sauce running through the middle, covered by delicious dark chocolate ice cream and topped with delicious toffee pieces. Chocolate & Caramel is available only in multipack and retails at €3.49.

Cornetto will be supported with TV, digital and mobile commencing in May. This year also sees some exciting new additions to the HB kids range. X-pop is a delicious Orange, Strawberry, Lemon and Cola flavour ice lolly with a bubble gum flavour topping, dipped in popping candies. As it contains no artificial colours and flavours and only 50 calories per ice cream, it ticks all parents’ needs, as well as being great fun for kids.

HB has lots to offer for the family freezer this year with great innovation in its Multipack range. Funny Finger offer everyone’s favourite That Away product in a handy take home format. Each pack contains six orange, strawberry and lemonlime flavour ice lollies in a hand shape. As with all HB multipacks, this multipack contains no artificial colours or flavours.

2011 also sees HB relaunching Solero ice cream with a new, improved formulation, with an enhanced nutritional profile, new look and real fruit pieces. There is an increased fruit content in Solero Exotic Explosion, from 23% to 37.5%, allowing the ice cream to contain real fruit pieces with 50% fruit and fruit juice in the outer sorbet coating. The overall reformulation has also resulted in reducing the overall calorie content from 99 to 90 calories.

Each multipack contains three 90ml sticks and retails at €3.38.

Enjoyed since 1926, HB Hazelbrook Farm is Ireland’s favourite ice cream with 75.9% market share of the standard ice cream sector (Source: ACNielsen Extended Scantrack, February 20, 2011).

The entire HB Hazelbrook Farm range is made using fresh milk and is free from artificial colours and flavours so it really is ‘Making the Most of Milk’. It’s also surprisingly lower in fat

than you might think, with around 5g fat per two-scoop serving.

2011 sees fantastic innovation being added to the Hazelbrook Farm portfolio, with the launch of two exciting new additions to the 1 Litre range - Chocolaloco New X-pop is a and Frantic Fudge! delicious Orange, Each of these Strawberry, Lemon variants contain a and Cola flavour ice combination of two lolly with a bubble delicious ice creams gum flavour topping swirled together dipped in popping with either cookies candies. or fudge pieces.

Ben & Jerry’s claims 62.3% share of super premium ice cream, making it the clear leader within this sector (Source: ACNielsen Extended Scantrack, February 20, 2011). Fairtrade and flavour loving Ben & Jerry’s has done it again with its latest flavour addition, Coconutterly Fair. Falling from the flavour tree this year, Coconutterly Fair has mouth-watering chocolate ice cream

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Ben & Jerry’s Homemade, Inc. 2010 Cows: ©Woody Jackson 1997

26|Retail News|April 2011|www.retailnews.ie

Ice Cream a fantastic new Rapture Roll, with luxurious real dairy ice cream encased in a continental wafer roll with chocolate coated ends. Commenting on this latest addition to the Dale Farm ice cream portfolio, Patrick Morgan, Commercial Manager, Ice Cream, stated, “This is a superb new product, which offers the luxurious taste of real dairy ice cream in a distinctly new format. It also offers retailers a

New from Ben & Jerry’s, Coconutterly Fair has mouth-watering chocolate ice cream with a rich coconut-caramel swirl and chocolatey covered coconut caramel crunch.

with a rich coconut-caramel swirl and chocolatey covered coconut caramel crunch, and that’s not even the sweetest part: it’s Fairtrade certified!

Dale Farm

In the fast changing ice cream category, Dale Farm continues to develop its portfolio, with its latest additions to the company’s wide range of impulse and take-home products.

Adding to its successful range of premium Rapture real ice cream products, Dale Farm is introducing

Dale Farm Choc Ice is now 20% bigger.

Other new additions to the Dale Farm ice cream stable are a high impact range of multipacks. Not only have Dale Farm developed the multipack formats of well-established favourites such as Choc Ice and Giant Bar, there is also the extension into a 6-pack format of the hugely-successful Ice Break ice cream snack bar, the impulse version of which was only launched last year.

Dale Farm have launched a 6-pack format of the hugely-successful Ice Break ice cream snack bar, the impulse version of which was only launched last year.

real point of difference in a crowded category.”

Dale Farm is also adding a new 90ml water ice, called Helter Skelter to its impulse range, which combines the four real fruit flavours of orange, strawberry, pineapple and lemon.

“We are really excited about these two new additions as they will appeal to a broad range of consumers, both adults and children, offering indulgence and refreshment treats,” said Patrick Morgan.

“These packs offer consumers the convenience of their favourite impulse products in a take-home format, which also offers superb value,” noted Patrick Morgan. “Our overall multipack range has experienced strong growth over recent years, reflecting the market trend towards take home. We have high hopes

Dale Farm’s Giant Bar: now available in multipack.

ICE FACTS 1. Ireland has the third highest ice cream consumption per capita in Europe, third to Sweden and Finland. Who says you need sunshine to eat ice cream?

2. It has been scientifically proven that Ice cream makes you happy 3. In a recent study, 85% of Irish parents said they give their kids treat foods once a day or less, but ice cream was the most popular choice as they believe it’s the healthier choice. 83% of Irish nutritionists agree that fun foods like ice cream can help maintain a balanced diet. More than half surveyed said that ice cream can be eaten once or twice a week as part of a balanced diet.

Enjoy a summer of sales with our superb ice creams!

Get a taste of success this summer with Dale Farm’s delicious new ice cream products Helter Skelter, Rapture Roll and Ice Break multipack.

And don’t forget, the line-up includes new Cadbury products Dream and Wispa, plus Nestle’s new Smarties POTZ and deliciously tempting Horror Lolly.

Stock up and enjoy a summer of sales!

Contact Sean Conacur

086 2554594

28|Retail News|April 2011|www.retailnews.ie

Ice Cream that these new additions will continue to drive further category growth.”

Dale Farm are also showing their commitment to the trade, along with their partner brands, Nestlé and Cadbury ice creams, in keeping prices at 2009 levels. This will be especially relevant to brands such as its Choc Ice, which will not only keep the same RSP, but will also be 20% bigger, therefore offering consumers a superb treat!

Mars Ice Cream

Mars ice cream is the clear number two in the Irish market. “Our business combines the best of what Mars stands for: great brands, delivering great taste to consumers, across all occasions,” noted a company spokesperson. “All products are leading brand names,

Irish Cone and Wafer has been serving the needs of Ireland’s ice cream lovers since 1944.

per portion, which is set to be a winner; • Looking for opportunities to work more closely with account partners by supporting both existing and new packs, with increased focus and impact in-store.

Irish Cone and Wafer Co.

Ireland’s love of ice cream is renowned the world over and even in spite our temperate climate and some of the worst summers on record in recent years, we remain one of the largest consumers of the product in the world. And the Irish consumer loves nothing better than to eat their ice cream from cones or sandwiched between wafers. With the warmer weather and brighter evenings upon us, it is the ideal time to stock up on cone and wafer products to capitalise on this great sales opportunity.

For its part, Donegal based company, Irish Cone and Wafer

have had a long affiliation with Ireland’s ice cream consumers, dating back to 1944 when the company was founded. Located at Gweedore in North Donegal, the company is the oldest and largest manufacturer of cone and wafer products in Ireland. It employs 22 people at its manufacturing facility, where it produces a wide range of products under the Cool Wafers, Cups and Cones branding, in addition to its Mega Chunky and 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 very eye catching pack designs, the company has a wide range of Point of Sale units and stands on which to display their products.

The company uses Largo Foods to handle their sales & distribution activities. Irish Cone and Wafer products are available by contacting Largo Foods on 01-8350611.

New Milky Way Magic Stars, with only 68 Kcal per portion, is set to be a winner with Irish consumers.

which are amongst the most heavily advertised in the snack food industry.

We use only quality ingredients like real dairy ice cream, providing a delicious and authentic Mars taste experience.”

Mars’ ambition in 2011 is to deliver a greater level of success by: • Building distribution of their top selling skus; • Extending their portfolio with some exciting new products, led by Milky Way Magic Stars, with only 68 Kcal

Irish Cone and Wafer produces a wide range of products under the Cool Wafers, Cups and Cones branding.

MACE is the longest established convenience shopping brand in Ireland. We’ve been making people’s lives easy since 1960. Now is a great time to move to MACE. Get unrivalled support from the MACE team, benefit from our nationwide advertising and local in store support. Add our unbeatable buying power, exclusive access to the competitively priced MACE own brand range and you’ll always have that crucial competitive edge.

Be a part of the MACE success story – it all adds up to more profit for you.

Call John Tully 086-8189312 and Liam Attridge 086-8521362. www.mace.ie

30|Retail News|April 2011|www.retailnews.ie

Market Overview

Gillian Swaine, Retail Specialist, Ireland Market, Bord Bia, reports on Bord Bia’s recent ‘Feeling the Pinch’ study, which explores changing consumer behaviour in the current economic crisis.

Irish Consumers Feeling the BORD Bia’s recently commissioned ‘Feeling the Pinch’ Study explores how consumers are feeling and behaving in the current economic crisis. The study provides insight into the prevailing situation and prospects for the food and drinks industry in the Republic of Ireland into 2011, identifying the key challenges and opportunities being presented to the industry. The study consists of nationally representative online surveys in Ireland and Great Britain. The sample size was over 500 Irish adults (aged 18+) and over 2,000 GB adults (aged 18+).

Consumers see some improvements in the Irish economy, albeit the situation is still seen as bad. Irish consumers have a much improved view of their own personal financial situation. According to the KBC Ireland/ESRI consumer sentiment index, consumer confidence reached a fivemonth high in February, but the underlying recovery was “tentative”. The KBC Ireland/ESRI consumer sentiment index for February rose to 50.3, up from 48.7 in January

Pinch

Which of the following do you feel will have an impact on the economy in the next 12 months? a) positive/negative b) greatest positive/negative

Source: Bord Bia, ‘Feeling the Pinch’

www.retailnews.ie|April 2011|Retail News|31

Market Overview and the highest seen since September.

In September 2010, the dominant view of consumers was that their own personal financial situation over the next 12 months will be about the same as the previous 12 months, as opposed to getting worse.

Three Distinct Shopper Groups

Deeper analysis of the quantitative survey reveals three distinct groups: • The ‘Plain Sailing’ group has been the least affected in real financial terms. Lower debts and steady income means the impacts are largely psychological.

• The ‘Choppy Waters’ group are getting by and cut-backs have been inevitable. Bigger ticket items like foreign holidays have gone but other luxuries are still accessible with careful money management.

• The ‘All Hands on Deck’ group are fighting to keep their heads above water. Only the most valued parts of their spending remain protected – often those to do with their children.

The IGD’s Irish Grocery Shopper Research, which they carried out in January, found that Irish shoppers are split into three camps for the year ahead; a third expect to prioritise saving money; a third to prioritise quality, and a third don’t expect to change. Over one in six shoppers, therefore, expect to shop differently during 2011. Despite the economic uncertainty, Irish shoppers clearly continue to care about value and values, not just price. They are looking for a balance of ‘value’ and ‘values’ from their weekly shop.

The Business Outlook

If we take a look at the business outlook, companies share the same view as consumers in that their outlook for the Irish economy is pessimistic: around half of the companies surveyed felt that the Irish economy would continue to contract in the next 1-2 years, with a significant number expecting a strong contraction.

However, companies want to get back to innovating, building brands and finding new markets outside the domestic market. Many of the companies highlighted their desire to get back to building value in their brands and the markets in which they operate, a desire that many felt might be unachievable given their resources.

What is clear from the study is that today’s landscape can be defined as the ‘new normal’, the characteristics

of which are likely to shape consumer attitudes and behaviours for the foreseeable future. Companies will need to adapt to survive and thrive in this landscape. The reality of all recessions is that they are unequal: not everyone is affected in the same way or to the same degree. Some consumers are clearly facing financial hardship and others remain broadly unaffected.

Each consumer type presents different challenges and opportunities to companies and brands.

The Market Impact

Consumer sentiment has had its impact on the grocery retail market.

According to the latest data from Kantar Worldpanel (data to Feb. 2011), the market continues to show value decline over the full year, but the rate of decline has slowed to -1.1% in the 52 weeks to February 2011. The latest quarter shows market value growth of +1.6% year-on-year, as price inflation continues to be the key driver or market value increases.

Shoppers are making on average 57 trips per quarter. However, they are reducing their spend on each store visit. There is evidence of shoppers trading up to more premium goods versus the same period last year.

However, standard and good (median

price) ranges account for 37.1% and 36.5% respectively of total packs sold.

Top Performing Categories

In terms of categories, ambient and frozen foods are growing ahead of the market, with healthcare and alcohol sales declining year-on-year.

Ambient is the strongest performing food sector, with growth seen across many markets. The frozen sector’s growth is driven by the performance in frozen poultry. The fresh and chilled sector sees slight growth over this period, driven by the performance of fruit and veg. and poultry. However, sector growth is being held back by dairy products, which are seeing sales decline by almost 13% versus last year.

Private label’s share of the Irish grocery market continues to grow and now stands at 34% of total grocery sales. Chilled cooking sauces, frozen sausages and processed poultry have some of the strongest private label offerings, while markets seeing strong growth include honey, peanut butter and bacon steaks.

Accepting the permanence of today and adapting to the conditions it presents will be the key for both businesses and consumers to survive, and possibly thrive, in the short to medium-term future.

32|Retail News|April 2011|www.retailnews.ie

Snack Foods Snack foods have proved pretty recession resistant, as they are seen as affordable treats by consumers.

Treat of

Strength The iconic Tayto Cheese & Onion crisps, the nation’s favourite crisp brand.

ACCORDING to the latest report into the sector from Euromonitor, crisps and snacks manufacturers, in line with the growing health trend, are addressing not only the fat content of their products but also the method by which they are produced. Industrial processes are losing favour with Irish consumers and ranges boasting “pan fried” or “hand cooked” methods are becoming increasingly popular.

Taglines such as “made with real ingredients” suggest a healthy connotation which may sway consumers to choose one product over another.

A continuing focus on health will drive growth in fruit snacks and nuts, according to Euromonitor, who also report that the impulse and indulgence products sector nevertheless grew at a slightly higher rate in 2010 than it did the previous year. Indeed, Euromonitor predict that impulse and indulgence products are expected to grow by a CAGR of 1% between 2010 and 2015 as they become more entwined in consumers’ everyday diets.

Snack products tend to be seen by consumers as affordable luxuries, and thus haven’t suffered as much as some other categories in the recession. However, the trend towards multipacks continues apace, as value-conscious consumers look for the best deals.

The crisp and snack category in Ireland is one of the most profitable FMCG categories for retailers and has a value in excess of €198m (Source: ACNielsen, MarketTrack, Value MAT, February 20, 2011). Due to exciting new product launches and innovative, integrated, marketing campaigns designed to grab consumers’ attention, the category has changed dramatically over the past number of years.

Largo Foods

Irish owned Largo Foods, based in Ashbourne, Co. Meath, is the largest snack food company in Ireland and is very proud of sourcing over 30,000 tonnes of potatoes from Irish farmers annually, which equates to approximately 10% of the nation’s annual potato crop.

Largo Foods represents some of the most iconic snack food brands, including Tayto, Hunky Dorys, King and Perri.

Together these four brands account for almost 50% share of the Irish market (Source: ACNielsen, MarketTrack, Value

New Tayto Occasions Whole Grain Chips: the first of its kind in the Irish market.

For a nation of crisp eaters.

It’s a fact, we Irish love crisps and combined Tayto, Hunky Dorys and King are the ones we love most. So give the nation what they want and watch your sales grow.

34|Retail News|April 2011|www.retailnews.ie

Snack Foods Largo Foods’ most recent new product release, Tayto Occasions Whole Grain Chip is a highly innovative product and the first of its kind in the Irish market.

The golden, triangular shaped, whole grain snack hosts characteristic toast points, New Hunky Dorys Hand Cooked Crisps are available in Mature Irish Cheddar Cheese & Spring Onion and Ranch Roasted Buffalo flavours. typical of a baked product.

It is then fried to ensure an ultra-thin, light MAT, February 20, 2011). and crispy texture for a delicious bite Tayto is Ireland’s number one which can be eaten solely as a savoury crisp and snack brand with more than snack or used as a complement with 30% share of the market, while Tayto any dip. Largo Foods has made a Cheese & Onion crisps still remain the number one selling pack in the country.

From a product development perspective, Tayto has identified the healthy and adult sharing categories as strong growth potential areas and Tayto Velvet Crunch claims 3.8% market share of the snacks category, making it the best selling healthy snack in the market. On the adult sharing front, Tayto Bistro and Tayto Occasions crisps products have performed exceptionally well with year on year growth of 33% (Source: ACNielsen, MarketTrack, Value MAT, February 20, 2011).

Ashbourne, Co. Meath, Tayto Park offers an unforgettable day out for the whole family. With over 55 acres of beautifully landscaped gardens, visitors will be treated to an array of exotic animals, while children will have ample opportunities to occupy themselves in the activity centres around the park. Adults can enjoy a relaxing time over a bite to eat in the beautifully crafted 18,000 square feet log cabin, retail and restaurant facility or the amazing Tree House for coffee, tea and ice-cream.

Hunky Dorys, the number one crinkle-cut crisp on the Irish market, commands a crisps market share of 15%, valued at over €17m and is almost five times bigger than its nearest competitor. Hunky Dorys is the fastest growing Irish crisp brand and the brand has recently launched some new products, with the introduction of Hunky Dorys Hand Cooked Crisps, available in Mature Irish Cheddar Cheese & Spring Onion and Ranch

New from Largo Foods, Perri Pickled Rings and Perri Hot Lips in 50g bags.

King Cheese & Onion: the crisp lover’s crisp is hugely popular with Irish consumers.

significant investment in new plant and equipment sourced from California in order to produce this high quality, innovative product. “Our consumer research has provided very positive results, with eight out of 10 consumers saying that they would ‘definitely buy’ Tayto Occasions Whole Grain Chips (Source: MillwardBrown Landsdowne).

We are very excited about the potential of this new product!” said a company spokesperson.

In addition to these new products, the most significant development is the opening of the new themed visitor centre, Tayto Park. Located in

Roasted Buffalo flavours. Together with the release of the new Hunky Dorys Smokey Bacon flavour, this brand is set to continue its impressive market growth.

King Crisps proudly claims the best-selling impulse pack in the greater Dublin area, and the share of King Crisps sales has grown dramatically from 20% sold outside of Dublin to now over 45% sold outside of Dublin. King Crisps, affectionately known as ‘The Crisp Lovers Crisp’, claims a market share in crisps of over 10% (Source: ACNielsen, MarketTrack, Value MAT, February 20, 2011). King

www.retailnews.ie|April 2011|Retail News|37

Personal Care Worth €364m per year, the personal care market is a valuable and growing one for retailers.

The Personal Touch

The personal care market in Ireland is estimated to be worth in the region of €365m, making it a massive category for retailers.

Indeed, supermarkets are now the most popular place to purchase personal care goods globally. A recent Nielsen global survey on health and beauty highlights that 58% of consumers worldwide say they purchase health and beauty products from a supermarket.

Oral, hair and deodorants are the largest categories in the toiletries sector, followed by bath and shower, according to Maura Tiernan, Category Manager, Unilever, who points out that male grooming is a key growth category. “This is because men are using more male-specific grooming products, and more men are buying these products for themselves,’’ she says.

According to Tierney, the economic climate has certainly had an impact on shopper behaviour within all categories. “We have seen the number of price promotions increase to unforeseen levels,’’ she warns. “While price promotions have their place, it is not the only method of offering consumers value for money. It is important that this is not the only lever which is used, as it could strip value sales out of the category for the whole FMCG sector.’’

Unilever

Unilever is the leading player in the deodorant market, holding a sizeable 66.4% value share (Source: ACNielsen, latest 52 weeks, w/e February 20,

The Dove brand is showing strong growth in the Irish market, with Dove for Women growing 5% in just two years, and Dove Men+Care is already the fifth largest male deodorant brand after its launch last year.

2011). Despite the entrance of new players to the market in 2010, Unilever continues to grow share.

Unilever’s ambition for 2011 is to grow the category even further and drive value back into the category. As market leader, Unilever continues to bring new innovations to the market and this year will be as big as ever for Unilever’s deodorant brands. 2011 sees the expansion of the highly successful Dove Men+Care range, aimed at males aged 35+. Lynx continues to build on its leading fragrance credentials, with the launch of new Lynx Excite, as well as expanding the Lynx Dry Anti-Perspirant Range with new Lynx Full Control. Sure for Women will lead the way with a revolutionary new technology and Dove for Women will expand its repertoire into the beauty segment with a new variant guaranteed to attract women in their early 20s.

Finally, Impulse Bodyspray will follow the success of its new fragrance

launch in 2010 with ‘Very Pink’, a fragrance guaranteed to attract young females and firmly establish Impulse as the market leader in Female Bodyspray.

Lynx is the number one brand in the deodorants market, with over 50% value share of the male segment. Lynx Africa is the firm number one variant but each year, Lynx NPD quickly becomes the second best seller of the range. This year is no different. With the support of a huge 360° campaign launch, including TV, outdoor, cinema, digital and in-store activation, Lynx Excite, the new fragrance by Lynx, has quickly become the number two selling sku. This sophisticated fragrance is so tempting, it will make even angels fall!

Educating the consumer of the benefits of dual usage of Lynx Body Spray (for fragrance) and Lynx Antiperspirant (for sweat protection) is a key growth priority for the brand. Lynx will continue to enhance its efficacy

38|Retail News|April 2011|www.retailnews.ie

Personal Care for Women will host a heavyweight leads the 360° campaign to drive maximum female awareness of its new proposition that category will epitomise the brand credential, and is three ‘Sure Won’t Let You Down’. times the Suremen is the number two male size of its deodorant brand, after Lynx. Following closest a successful year of share growth competitor in 2010 (Source: AC Nielsen, Total in terms of Market Value Share, latest 52 weeks, value share w/e February 20, 2010), Suremen (Source: Sure: the world’s number one deodorant brand caters for men and will focus on the core of the brand in ACNielsen, women.

2011 with a strong ATL campaign latest 52 weeks, emphasising its tried and trusted w/e February credentials with the launch of Lynx efficacy credentials.

20, 2011). 2011 is an exciting year for Full Control Anti-Perspirant this Dove for Women is now the number Sure for Women and sees the launch year. The launch will be supported by two female deodorant brand in the of an improved formulation containing another huge 360° campaign, including Irish market with 18.5% value share revolutionary new technology designed TV, cinema, and digital, that will drive (growing 5% in just two years). 2011 to specifically meet the needs of its home the core efficacy message in a sees Dove for Women adding to its on-the-go target consumer. Sure witty irreverent Lynx tone of voice.

Lynx Cool Metal also hits shelves this year and is available in Bodyspray and Shower Gel. It is the first metallic silver shower gel with fine quartz, zinc and menthol that delivers a ‘cool’ sensation on skin. With a year packed full of new product launches and engaging ATL campaigns, 2011 promises to be a year full of the Lynx Effect!

Sure is the world’s number one Lynx is the number one brand in male deodorants in Ireland, with over 50% value share. deodorant brand. Sure for Women

ASK THE EXPERT: Maura Tiernan, Category Manager, Unilever.

What innovations are driving the sector?

Personal care is a key sector for innovation. The challenge is to make all these innovations relevant to the consumer.

Last year, the ‘Naturals’ proposition was one of the most important innovations in the deodorants category. In January 2010, Unilever successfully launched Sure Natural Minerals deodorant to meet an identified consumer need.

Also in 2010, Dove launched a revolutionary moisturiser called Dove Visible Effects. This new innovation combines three powerful moisturising ingredients to visibly improve the skin’s look and feel, by suspending and infusing moisture across all layers of skin.

personal care and represents by far the biggest opportunity for growth for the sector. Here at Unilever, we have been educating the consumer of the benefits of dual usage of both Lynx Body spray (for fragrance) and Lynx Anti Perspirant (for sweat protection), therefore driving incremental sales and value in the personal care sector.

Vaseline is the number one lip prep brand in Ireland and has built strong credentials in the market through its cult petroleum-based Lip Therapy tin range. The Lip Therapy range has been one of the brand’s biggest growth drivers.

Furthermore, in 2010, we used our heritage and expertise to develop a range of Lip Therapy sticks.

What is the value of the deodorant/antiperspirant sector?

The total deodorant category is worth €24.4m. The male deodorants category is worth €12.8m to the Irish market and is in growth at 1.4%. Anti-Perspirants account for 47% of this category (Sources: ACNielsen Scantrack, w/e February 20, 2011; Nielsen Global Survey, Kantar Worldpanel). Lynx is the number one brand and Lynx Africa remains the number one variant within the deodorants category in Ireland.

The female deodorant category is worth €11.6m and is in decline at 5.9%. Anti-Perspirant is the largest format in female deodorants with a 67% value share.

How do you see the market developing into the future?

Market development is at the heart of Unilever’s strategy on

Best category advice by sector: At Unilever, we understand the importance of good category management and offer our expertise and advice to all channels. In order to share our expertise in this area, we launched the Partners for Growth initiative in 2009. Partners for Growth delivers free, independent and fair category advice to Ireland’s convenience retailers through Ireland’s first category advice website. In fact, the initiative has proven to grow category sales by up to 28%! Its key features include planograms, best seller lists, shopper tips, retailer testimonials and a retailer forum. For further information, please visit the Partners for Growth website: http://partnersforgrowth.unilever.com/ireland

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Personal Care With 95% of the starting in May, centreingredients of natural staging skincare and origin, the new NIVEA the NIVEA core values.

Pure & Natural Face NIVEA will also donate and Bodycare range 10c from the proceeds includes Moisturising of every special edition Day Cream for a variety ‘Care and Connect’ of skin types, as well as NIVEA Creme tin Facial Cleanser, Facial sold around the world Toner, Anti-Wrinkle Day to a NIVEA and Plan and Night Care, and International project Body Lotion. in Guatemala, with 5m of these tins expected to be sold, GlaxoSmithKline NIVEA Creme has been sold equating to a donation worldwide in the classic blue/ GSK yet again brings of €500,000 innovation into the oral white tin for almost 100 years To reach new target and is available in over 200 care category with the countries. groups, NIVEA will launch of new Sensodyne also launch its largest Repair and Protect. New ever digital mobilisation campaign Sensodyne Repair and Protect with in social media, in collaboration with Novamin Technology is different from international superstar Rihanna, other toothpastes. It has a unique, which is expected to generate over one clinically proven, concentrated Beiersdorf billion page views per week. calcium formula that helps repair Beiersdorf is preparing the ground “With the new strategy, the vulnerable areas with the natural for future growth and is realigning planned activities and NIVEA’s building blocks of teeth. The launch of the NIVEA brand in its 100th new branding, we are showing that Sensodyne Repair and Protect is being anniversary year. With the business NIVEA, 100 years after its birth, is supported by a €500K campaign, with strategy, ‘Focus on Skin Care. Closer to still young, modern, and a powerful heavyweight media support, including Markets’, the company will concentrate innovator in cosmetics and above all, is TV, outdoor and in-store promotions. on its core competence, skin care, a synonym for skin care GSK consistently expands and placing NIVEA at its centre. that endures,” stated develops its range “Skin care is the strongest growing Markus Pinger. segment of the global cosmetics New NIVEA market. By 2015, 45% of the total Invisible for Black growth in the cosmetics market is & White Deodorant expected to come from this area. With is the first and NIVEA as the largest skin care brand only deodorant on in the world, we will profit from this the Irish market strong growth,” said Markus Pinger, to offer protection Beiersdorf Board Member responsible against the permanent yellow for Brands. staining of white and light clothes, NIVEA Creme has been sold New as well as protecting against white worldwide in the classic blue/white tin Sensodyne Repair and Protect with marks on black clothes. This incredibly for almost 100 years and is available Novamin Technology has a unique, clinically gentle formula does not contain alcohol in over 200 countries. With the motto proven, concentrated calcium formula that or colourants and its skin tolerance ‘NIVEA: 100 Years Skincare for Life’, helps repair vulnerable areas with the natural is dermatologically proven.

NIVEA the world’s largest skin care brand building blocks of teeth.

Invisible for Black & White Deodorant launches a worldwide campaign is available as a 150ml over the years to meet consumer spray, a 50ml roll-on and demands. “To cater for varying as a 35ml mini spray. consumer requirements in the oral NIVEA Invisible for Black care category, we continue to innovate & White Power is available across both the Sensodyne and as a 150ml spray and a Aquafresh brands,” notes Eilis Tobin, 50ml roll-on.

Shopper Activation Manager, Oral Another innovation, Care, GlaxoSmithKline.

NIVEA Express Hydration As well as new Sensodyne Repair Body Lotion harnesses and Protect, GSK have premium Nobel Prize winning products across the Aquafresh range technology to boost the to cater for the spectrum of family body’s own hydration requirements, such as Aquafresh system, delivering 24 Extreme Clean, which is a popular hour moisturisation in choice, thanks to its distinctive New NIVEA Invisible for Black & White Deodorant offers an incredibly light, easily promise of cleaning both the teeth amongst the most advanced ‘white mark’ protection on and tongue. “In years gone by, people the market, as well as protection against yellow stains on absorbed, Lotus Flower scented formula. were only concerned about protecting white clothes. repertoire with a new fragrance, a strong ATL campaign to maximise awareness of the new Beauty Finish variant and further communication on the core Dove for Women range.

Having launched in 2010, Dove Men+Care is already the fifth largest male deodorant brand with 5.7% value share of male anti-perspirant deodorants and 5.1% value share of male roll-on. Dove Men+Care has also proven to drive market development, whereby 44% of shoppers are new to the deodorants and male grooming categories (Source: Kantar, Source of Volume, 24 w/e July 11, 2010). 2011 will see Unilever investing further in Dove Men+Care ATL to maximise awareness and to encourage shoppers to trade up to male specific products from female / unisex.

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Personal Care Indeed, Sensodyne is the number their teeth,” notes Tobin. “Nowadays, Johnson & Johnson two Oral Care brand on the market though, it is about keeping the whole (Ireland) Ltd overall (Source: ACNielsen ROI mouth clean - the teeth, gums and Listerine is by far the number one Scantrack, Multiples, MAT Value tongue – and most importantly, having mouthwash in Ireland with a massive Share, w/e Jan 23, 2011). Within this fresh breath.”

61% market share, making it six times product range, Sensodyne ProNamel is The Aquafresh Kids range has bigger than its nearest competitor the best-selling SKU in value terms. recently been redeveloped to offer a (Source: ACNielsen, January 23, 2011).

However, the GSK portfolio greater choice of products for younger Clinically proven to remove 56% more includes a number of brands to family members. This move will plaque than brushing alone, Listerine cater for many oral care needs and support the ongoing growth in this gives 24-hour plaque protection requirements. These include family/ sub-sector and capitalise upon the when used twice daily and is the only every day oral care (Aquafresh), opportunity for more sales therein. mouthwash accredited by the Irish denture care (Poligrip) and specialist GSK are currently the number two Dental Association. With massive oral care products such as Corsodyl player in the total market, with 26.8% advertising and promotion support for gingivitis and Paradontax, value share (Source: ACNielsen ROI, behind the brand, Listerine is in a strong which is clinically proven to help Total Scantrack, Mults/Grps/FCTs, position not only to maintain market fight periodontitis. Similarly, whilst MAT, December 26, 2010). Sensodyne leadership but also to drive category Sensodyne Base is synonymous with continues to be the star performer for growth for the mouthwash market.

Sensitivity, Sensodyne ProNamel GSK. The brand continues to be the The newest edition to the range, combats acid erosion, and they now number one brand for Sensitivity in Listerine Total Care Enamel Guard, have new Sensodyne Repair and ROI, and is currently growing at 4% when used twice daily, is specially Protect, with its Novamin Technology, sales value MAT (Source: ACNielsen formulated to strengthen and protect which actually seeks out and repairs ROI Scantrack, Multiples, MAT tooth enamel and kill the harmful vulnerable areas of the tooth.

Value Share, w/e Jan 23, 2011), and bacteria that can damage teeth.

January saw it achieve a value share high of 26.8% (Source: ACNielsen ROI Scantrack, Multiple, 4-w/e Jan 23, 2011). New product launches such as Sensodyne Rapid, Pronamel Whitening, and Sensodyne Repair and Protect will ensure Sensodyne continues to outperform the market in continue with this exceptional sales Listerine is by far the number one mouthwash in Ireland with a massive 61% market share. growth.

ASK THE EXPERT: Eilis Tobin, Shopper Activation Manager, Oral Care, GlaxoSmithKline.

Do you think Irish consumers have become more concerned with oral hygiene in recent times?

In Ireland today, our oral health has become a very important part of our overall health. As with all aspects of consumer health, we can see a considerable change in behaviours and attitudes in this sector.

Many macro trends are impacting on today’s oral health; for example, consumers are staying younger longer, we have become more health conscious, our eating habits have changed considerably over the years, and we have become an ageing population.

In the past, we ate fewer meals, which contained less acidity in our diets. Nowadays, we frequently snack and we include more healthy products in our diets, which means more frequent acid attacks on the surface of our teeth, due to the acidity of the foods we eating. This in turn results in the new challenge of acid erosion where the increased amounts of acid in our diet cause softnening in the enamel of our teeth. In fact, 84% of adults suffer from tooth erosion (Source: Reingold consumer research 2003 and Henley Centre Macro Trends 2005, Dentist Quintus Germishuys, London UK Sept 2006). GSK are helping to combat this issue with product innovation. In particular, our range includes Sensodyne ProNamel – a daily toothpaste which helps protect against acid erosion.

Another changing trend is that the average household

purchase in this sector can include a selection of products to suit everyone’s different needs – from a kids’ paste for younger family members to Whitening or Sensitive products.

There is also greater awareness of the whole oral care regime – toothpaste, toothbrushes and mouthwashes collectively are becoming more and more a part of our daily routine. Consumers are becoming better educated as a result of Dental Recommendation, and of heavy weighted media campaigns, including TV, outdoor and press, which deliver key messages to them. Driving regime has become a key focus for GSK, with our family fresh & minty and mild & minty ranges, we included an oral care routine message on these packs. The Sensodyne brand also includes a toothbrush and mouthwash to drive regime in conjunction with use of Sensodyne toothpaste. We also encourage regime in the kids sector with Aquafresh Big Teeth Kids paste and brush and mouthwash.

What is the value of the oral care sector in Ireland and has it grown in the past year?

The oral care Category in grocery was worth €43m in 2010, down by 0.1% in sales value (Source: ACNielsen ROI, Total Scantrack, Mults/Grps/FCTs, MAT, December 26, 2010). 16,000 units were sold, which was up by 9.5% versus the previous year. The oral care market is returning to growth, following strong declines in the last two years.

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Market News SUPERVALU TO SELL €22M OF IRISH LAMB SUPERVALU will sell in excess of €22m worth of Irish lamb this year, with Irish spring lamb accounting for some €9m of these sales. New season spring Irish lamb is now available across SuperValu’s network of 192 stores in the Republic of Ireland, making SuperValu the largest seller of Irish lamb in the country and by extension one of the biggest supporters of Irish sheep farmers.

Martin Kelleher, Managing Director, SuperValu, said, “SuperValu is a business that listens to what the Irish consumer wants and given the choice, we know people want to buy Irish. This year, SuperValu will account for €22m in lamb sales, showing that consumers are opting for top quality Irish food, which we believe is the best in the world.” Pictured at the announcement are mother and son, Donna and Anthony Lyons (6) from Dublin.

WKD PURPLE LIMITED EDITION

WKD Purple is the new limited edition flavour from WKD, Ireland’s most popular PPS. From now until the end of the year, WKD Purple will be available in leading off licences nationwide in 275ml and 700ml bottle formats. The limited edition launch will be supported with outdoor advertising, as well as an interactive social media programme on the WKD Ireland Facebook page.

WKD Purple breaks new ground by becoming the first ever Limited Edition to be launched by the iconic brand, which has been the PPS category’s number one bestseller for the best part of the last decade (Source: GCA On Trade RTD category volume & Nielsen Take Home PPS category volume 2011). In addition, the WKD rate of sale remains the highest amongst the three principal competitors in the PPS category.

Debbie Vard, Marketing Director at Britvic Licensed Wholesale, says: “The introduction of limited edition WKD Purple is guaranteed to create strong levels of interest amongst consumers. As well as leading innovation in the PPS category, the addition of WKD Purple to the WKD portfolio demonstrates our ongoing commitment to driving and maintaining the success of the brand in Ireland.”

See http://www.facebook.com/wkdstyleireland for more.

John Player Gold

MOOD MEDIA COMPLETES 100TH INSTALLATION FOR AN POST MOOD Media Ireland has completed its 100th installation of digital signage and audio content for An Post, Ireland’s national postal service provider. As part of planned modernisation of its network of retail Post Offices across Ireland, Mood Media is creating and broadcasting brand-enhancing visual solutions across a total of 240 branches. Tallaght Post Office in The Square Shopping Centre, South Dublin, is the hundredth branch to have LCD screens installed, broadcasting news, sport and entertainment bulletins, as well as digital animations created by the Mood Media creative team designed to make every visit a more interactive experience for the customer.

Pictured at the 100th installation are Donal Connell, CEO, An Post, and and John Sheehan, Sales Director, Mood Media.

NEW John Player Gold was launched on April 18. The trend of consumers moving towards the smoother sector continues growing, with currently 42% of the cigarette market in this sector. John Player Gold is a credible choice for consumers who choose to move down in strength. The pack is unmistakably a ‘smoother’ brand with its white tones, clean lines and sophisticated look. It also provides a tactile element, with the texture adding another element so important to a brand of today. Building upon the strong heritage and success of the John Player brand, John Player Gold is sure to impress consumers who are looking for another option in the smooth sector. John Player Gold will be available in both King Size and 100mm length. RSP for both brands is €8.50.

CADBURY BIG RACE BAR AS part of the Cadbury Spots v Stripes campaign, Cadbury has developed the new limited edition, Big Race bar, a crispy wafer bar with cocoa crème and biscuit pieces covered in Cadbury milk chocolate. Big Race bars also feature an on-pack promotion whereby consumers can enter an online code found inside their wrappers. Whoever enters the code the fastest will be awarded a Guinness World Record. The packaging of the new bar will leverage the visual identity that already exists around Spots v Stripes, with a purple and white design which reinforces the elements of play and racing with visuals of flags on the pack. RRP €0.80.

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Forecourt Focus

When a SPAR is Born

Jack Fitzpatrick and Tracey O’Neill haven’t looked back since their Cahirciveen forecourt joined the SPAR Group.

Cahirciveen is situated in one of the most picturesque regions of the Kingdom, one which has traditionally attracted high numbers of tourists. However, recent years have seen visitor numbers to the region falling, but that hasn’t stopped two dedicated retailers developing a successful business.

Tracey O’Neill, pictured outside the revamped SPAR Express in Cahirciveen, Co. Kerry.

“In 2009 the shop experienced a difficult year,” admits Tracey. “The summer trade was not great and Jack and I felt that we needed to do something to position our business more successfully. We entered discussions with a number of symbol groups and closely examined the various packages on offer. In the SPAR group, we found a large and robust organisation and partnership with the group would allow us to offer our customers precisely what we needed to.”

Strong Return on Investment

Jack Fitzpatrick first opened a forecourt in Cahirciveen, Co. Kerry, 15 years ago. Five years ago, Tracey O’Neill took a 30% share in the business and the co-owners traded successfully with a symbol group partner. Recent months, however, have seen big changes at the forecourt store, which has joined the SPAR group and adopted the latest SPAR Express image. An additional 1,000 square feet of retail space has been added to the shop, as well as a complete redevelopment of the interior and the implementation of a business strategy designed to maximise the shop’s potential.

Immediately on joining the SPAR team, Jack and Tracey began an exhaustive examination of all the options available to provide them with a strong return on a significant investment in their business. According to Tracey, they were amazed by just how much support was available to them: “In a very short period, we had considered a huge variety of planograms and business strategies and agreed on exactly what we wanted. While the SPAR group is a very large organisation with a strong national identity, we have received as much individual support and attention from SPAR as we could have wanted.”

With every detail of the project meticulously prepared, the redevelopment of the forecourt began in February of 2010. The planning process paid dividends immediately: the shop was able to keep trading throughout construction as it was expanded and redeveloped in phases. All work was completed by April 2010 and the speed of completion is testament to the professionalism and rigorous attention to detail undertaken in the planning process. Already, weekon-week trade is up 20% on last year’s figure; proof of the success of the business strategy that SPAR has implemented along with Tracey and Jack.

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Forecourt Focus Maximising Customer Appeal

Fitzpatrick’s SPAR Express now offers customers a broad selection of product and shopping alternatives to maximise its appeal to any and all potential customers. The ambient grocery has been expanded, along with the footprint of the building. The strong POS materials from the SPAR Group direct customers to the impressive selection of value offers that partnership with SPAR allows Tracey and Jack to offer their customers. Alongside this, the deli provides a broad range of hot and cold food-to-go offerings, with a significantly stronger emphasis on healthy options than in previous years.

In-house baking systems provide customers with the freshest baked goods; from bread and scones to bespoke birthday cakes. The fresh products are presented on attractive wood finished shelving that emphasises the healthy and hearty nature of the produce. Along with fresh ice cream and fresh made tea and coffee, the entire foodto-go sector has a focus on top quality as well as value for money. Indeed, the strategy implemented over the course of this project has driven sales in the shop and surpassed expectations.

“This is a large forecourt shop rather than a supermarket and we had not particularly expected to see a lot of trolley shopping here, but since we have re-opened, we have found that because of the balance we have struck between quality and value, that we do get such sales,” Tracey explains.

“Average spend at the till is up. National advertising campaigns from SPAR have done a lot to help reposition the brand for consumers and they know that they can get really good deals in their local SPAR. The group also provides us with a variety of online supports that allow us to print our own promotional material at a minimum cost so that we can promote ourselves locally.”

New Shopping Experience

In summary, Tracey is extremely happy with the store’s symbol group partner: “Working with SPAR, we are able to offer our customer an entirely new shopping experience. The look of the shop is fantastic, all of our customers love the SPAR image but even more important than that, they love the new shop, what it offers them in terms of product and value. Unlike what might happen in a larger multiple, our customers can enjoy a really pleasant shopping experience with friendly, really well-trained staff. The SPAR Virtual Academy allows us to train staff on-site, which is very convenient. Last year, our success in the Five Star Awards in our first year of trading has set a standard that we expect to surpass this year and we and all of our staff are looking forward to the challenge.”

Tracey and Jack have completely transformed their business and developed a partnership with SPAR that has helped them grow their business. Morale in the shop and on the shop floor is high, despite the economic backdrop, as they build their new business with all the support they need from their symbol group partner.

FACT FILE Owners:

Jack Fitzpatrick & Tracey O’Neill

Location:

Cahirciveen, Co Kerry

Size:

2,500 square feet

No. of Staff:

16, full-time and part-time

Opening Hours: 07:00-22:20, Monday to Sunday (winter); 07:00-23:00,Monday to Sunday (summer)

46|Retail News|April 2011|www.retailnews.ie

On the Vine

Born in the USA

Stephanie Gallo, the grand-daughter of Ernst Gallo, who founded the winery in 1933, was in Dublin recently for the launch of Barefoot on the Irish market.

THE USA is one of the key markets globally in terms of both production and consumption. It is the world’s fourth biggest wine producer. Wine is produced in 46 of the 50 states, but the most important north American regions commercially are California, New York, Washington, Oregon and Texas.

American wine on this market mainly comes from California, it is in fourth place in terms of volume share, (approximately 10% of the Irish market).

The novice drinker is the main consumer of Californian wines here, with brands such as Blossom Hill (Gleeson Group/Gilbeys Wines); Fetzer/Bonterra (Edward Dillon & Co.); E&J Gallo (Cassidy Wines); and Sutter Home (Findlater Wine & Spirits Co.) leading the way in terms of market share. The off dry Rosé wines, or White Zinfandel as it is known, produced by these brand leaders appeal

very much to the younger female consumer, who drives this category.

Significant Increase in Mid-Price Range

In recent years, the demand for these wines has faced stiff competition from Italian Pinot Grigio and New Zealand Sauvignon Blanc.

Pinot Grigio is currently driving a substantial portion of market share for whites.

ACNielsen MAT figures corroborate this, with the data showing that growth in volume sales of Italian wines, up 276% by volume, were surpassed only by New Zealand Sauvignon Blanc, up by 4,944% to October 2010.

The result was that overall MAT volume sales from USA were down by 0.3%, with value dropping by 12.5%.

Bucking that trend were figures from the specialist off licence retailers, where the USA grew in terms of volume sales. It is heartening to see that the highest increase in value terms for the USA

Jean Smullen looks at the top-selling American wines on the Irish market. was in the mid-price sector €13.00-€13.99, where MAT figures to October 2010 showed a significant increase in value sales, which were up by a whopping 956%.

Pinot Grigio

So where does that leave the US and, in particular,

Californian wine at the present time? Well, many of the wineries are now starting to sell Pinot Grigio.

Barefoot, the new brand from E&J Gallo, is a case in point. Barefoot, the number one selling brand in the US from a dollar revenue point of view, is also the

NEW GALLO SUMMER RED THIS summer, Gallo Family Vineyards is set to create a new drinking trend with chilled red wine, the first of its kind in Ireland. Fruity and delicious, Gallo Summer Red will show just how refreshing a red can be with an exciting new red wine that is designed to be served chilled.

Gallo Summer Red’s lighter, softer and sweeter taste will appeal to everyone, even for those who don’t think they like drinking red. This lighter choice has been developed for people who like the idea of red wine, but feel it is too rich and warm for their taste. The chilled Gallo Summer Red is a medium to light bodied wine and has a wonderful fresh combination of cherry, pomegranate and raspberry fruit flavours, smooth tannins and just the right amount of sweetness.

Gallo Summer Red was launched at the end of March, with an RRP of €8.49.

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On the Vine most awarded wine under $15 in the US. Barefoot was founded in 2005 by Michael Houlihan, who utilised brand ambassadors and local community events to promote the brand. This proved to be enormously successful, so much so that the brand was subsequently taken over by the Gallo Group and their new range of grape varieties, including Pinot Grigio and Sauvignon Blanc, were launched in Dublin recently by Stephanie Gallo, the grand-daughter of Ernst Gallo, who founded the winery in 1933.

Gallo isn’t the only player to focus on Pinot Grigio, however. Blossom Hill, one of the industry leaders, also has a Pinot Grigio as part of its range, as well as a Sauvignon Blanc. A recent portfolio tasting highlighted a new Blossom Hill Zinfandel Sparkling Rosé, as well as

the ever reliable Blossom Hill White Zinfandel.

Big News from the USA

Another big story in relation to the US was the news early in March 2011 that Chilean wine company Concha y Toro (Irish Distillers/ Pernod Ricard) purchased California’s Fetzer Vineyards from Fetzer’s owner, BrownForman. Brands including Fetzer and Bonterra, amongst others, will now be part of the CyT stable. The organic credentials of Bonterra will fit well with brands such as Cono Sur (Findlater Wine & Spirit Co). Bonterra is one of the largest organic producers in the US and this purchase is the largest acquisition deal for any Chilean wine company.

Concha y Toro is the 10th biggest wine company in the world in terms of volume sales.

CALIFORNIAN WINES OVER €10 2009 Spirit Hawk Pinot Grigio RRP €10.99 (Classic Drinks) This wine is made by Rutherford Ranch, a high quality winery based in Napa Valley. The wine is 100% Pinot Grigio from grapes grown in the warm central valley in California.

2007 Robert Mondavi Fume Blanc RRP €21 (Barry & Fitzwilliam) Mondavi started his own winery in 1966, and the following year he tried to do something different with his Sauvignon Blanc grapes, looking for a style somewhat like that of a French wine. The first vintage didn’t make any great impact, but in 1968, when he had a better harvest of Sauvignon grapes, he made a remarkable wine. He decided that one of the problems in selling SB was the name, so he brought out the new wine labelled Fume Blanc. It is now hailed as being one of the best Californian white wines on the market today.

2009 Ménage à Trois RRP €9.99- €10.99 (Findlater Wine & Spirit Co.) A good old fashioned double entendre, Ménage à Trois refers to the three grape varieties (46% Zinfandel, 31% Merlot and 23% Cabernet Sauvignon), each vinified separately and then blended together. Very good wine from California with a great price: I’ve tried this with food and it works well.

2005/06 Sonoma Cutrer Pinot Noir RRP €24.99 (Edward Dillon & Co.) World Class Pinot Noir from Sonoma Valley, bursting with complex flavours. This boutique wine is owned by Brown Foreman. The winery uses fruit from a selection of several key vineyard properties in the marginal benchlands, hillsides and rocky foothills of Sonoma Valley.

CALIFORNIAN WINES UNDER €10 2008 Blossom Hill Pinot Grigio delle Venezie RRP €9.38 (Gleeson Group/Gilbeys Wines) This is slightly off-dry, but very appealing to the younger drinker who will identify with the grape as well as the Blossom Hill range, which is huge in Ireland.

Echo Falls White Zinfandel RRP €7.99 (Barry & Fitzwilliam) The name Echo Falls is inspired by the waterfall in Yosemite National Park. Produced by Mission Bell winery, this is a good value Rosé wine (White Zinfandel is another name for Rosé in the US).

2009 Barefoot Cellars Merlot RRP €8.49 (Cassidy Wines) This Merlot has wonderful aromas of black cherry and plum. Lovely chocolate/ coffee tones show through. Watch out for a number of Barefoot events at Taste of Dublin in Dublin’s Iveagh Gardens in June, Castlepalooza at Charleville Castle in Tullamore in July and the Ploughing Championships in September.

Paul Masson Red (1 ltr) RRP €9.99-€10.49 (Barry & Fitzwilliam) Sold in a distinctive carafe, this brand has huge recognition in Ireland. It’s a great party wine, and has a good following because of this.

Paul Masson is one Gallo Family Vineyards Summer of the great success Red RRP €8.49 - €9.00 (Cassidy stories from California Wines) I tasted this recently, a in the last number of pure blackcurrant fruit-bomb. With years. Distinctive by its summer just around the corner, Carafe shaped bottle the Red,White and Rose this is going to be ideal for the litres retail at €9.99.

BBQ market. Made from Zinfandel 43%, with 30% Pinot Noir, 10% Barbera and other grapes, it has low ABV of 10.5% so it will make a really good party wine. Just right for summer drinking.

2009 Sutter Home Cabernet Sauvignon RRP €9.39-€9.99 (Findlater Wine & Spirit Co.) I was lucky enough to interview Roger Trinchero in Dublin a few years back. I have long been a fan of his wines. His family “invented” White Zin when his brother Bob was experimenting with Zinfandel and out of a stuck fermentation, a wine boom was born. Sutter Home is one of their key brands. California Cabernet is always good and this one is competitively priced.

FOR THAT SPECIAL OCCASION 2005 Cakebread Cabernet Sauvignon Organic RRP €60 (Febvre & Co.) The winery was founded by Jack Cakebread in the 1970s. This is a Bordeaux blend, 87% Cabernet Sauvignon, 10% Merlot, 3% Cabernet Franc from near Carneros in the Napa Valley. Napa Valley Cabernet is ripe, rich with great structure and loads of potential. This is an uber-boutique wine, with tonnes of class.

48|Retail News|April 2011|www.retailnews.ie

Shelf Life SAINT Patrick’s Day saw the originator of Cahill’s Farm Cheese, David Cahill present a fascinating lecture on the history of cheese to an audience including His Serene Highness Prince Albert II of Monaco at the Princess Grace Irish Library. This was followed by a tasting of the award-winning cheeses, hand crafted on his family farm in Newcastle West, Co. Limerick. At the end of the evening, David and Marion Cahill’s daughter, Helen, presented a basket of cheeses to the Sovereign Prince. HSH Prince Albert II of Monaco is pictured with Robert O’Byrne, David Cahill, and Francis O’Hara.

XM Solutions was named as one of Ireland’s Best Managed companies in the Deloitte Best Managed Companies Awards Programme.

Pictured are (l-r): Michael Collins, Strategic Director, XM Solutions; Emerson Palmer, CEO, XM Solutions; MC Miriam O’Callaghan; Lorraine Palmer, Financial Director; Michael Flynn, Partner, Deloitte; and Peter Mahon, Sales Director, XM Solutions.

BLOOM 2011 takes place at the Phoenix Park, Dublin, over the June Bank Holiday Weekend, June 2-6, and is set to be five days full of flowers, food and fun for all the family. Last year’s event was a spectacular success, with record crowds and stunning show gardens.

CAPTAIN Morgan’s latest quest, ‘Dare the Captain’, sees the Captain calling on his legion of over 85,000 Irish Facebook fans to dare him to do something truly legendary, which he will undertake when he returns to Irish shores at the end of April. The lucky darer, as chosen by the Captain and his Morganettes, will receive an amazing prize of €5,000 from the Captain’s bounty and many others will win prizes from his treasure chest.

GOOD Food Ireland, Ireland’s only All-Island Food Tourism Group has been short-listed as a finalist in the Outstanding Small Business Category in the All Ireland Marketing Awards 2011. The Awards Ceremony Gala Event will take place on May 12 in The Burlington Hotel, Dublin. Speaking about the nomination, Founder and Managing Director of Good Food Ireland, Margaret Jeffares (pictured), noted, “We’re honoured to make the 2011 shortlist for Outstanding Small Business in this year’s All Ireland Marketing Awards. Although 2010 has been a very challenging year, small businesses such as ourselves play a vital role in the current recovery of the Irish economy.”

CPM, one of Ireland’s leading field sales companies, has teamed up with United Biscuits Ireland, to build awareness of their new McVitie’s VIP Campaign – McVitie’s VIP Club. CPM staff recently launched the campaign in 21 Superquinn and 122 SuperValu stores nationwide (including SuperValu Malahide, pictured), giving away promotional samples of McVitie’s biscuits to customers.

McVitie’s VIP Club is a loyalty scheme, whereby customers can register their pack code on www. mcvitiesvipclub.co.uk and use their VIP Club points to claim treats on the website.

LIDL have a host of delicious chocolate treats available this Easter under their own Favorina brand.

The range includes Lidl’s Favorina Chocolate Bunny, Chocolate Painted Bunny and the Lidl Chocolate Easter Hen, as well as Lidl Easter Pralines, Wafer Eggs and Chocolate Easter Figures. Lidl’s Children’s Easter Bag for Kids will be a real hit with children, who will find it hard to resist these chocolate eggs filled with a strawberry, milk or orange crème filling. The range also features Chocolate Easter Decorations, Cream Filled Eggs and Milk Chocolate Praline Eggs.

TEATIME has just got tastier thanks to Aldi’s new Byrne’s Bakery Specially Selected Luxury Filled Muffins. Hand-crafted in Co. Cork using the finest ingredients, Aldi’s luxury Irish muffins combine melt-in-the mouth moistness with a decadently filled centre. Available in two scrumptious flavours, toffee and lemon, Aldi’s new Byrne’s Bakery Specially Selected Luxury Filled Muffins come in a generous two-pack for €1.49.

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