December Cover dec10.indd 1
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n inside view
Another Year Over! At the time of writing, the snow and ice is finally starting to thaw on the streets and footpaths across the country, and the truth is that it seems only weeks since we were talking about the same thing back in January. It’s hard to believe that almost a full year has passed since the last cold snap brought the country to a standstill. Thankfully, this time around, the authorities were better prepared to deal with the adverse weather and the levels of disruption were lessened as a result, but the weather still impacted on business throughout the country, as evidenced by a new IBEC survey (See page 7). Also in this issue, we reflect on the last 12 months in Irish grocery retailing in a special eight-page report (Page 16-23), covering everything from the Tánaiste’s decision in January to introduce an ombudsman to referee disputes in the grocery sector, to this month’s budget. Indeed, the budget and the Government’s four-year plan come under the microscope in our news section (Page 4 & 5), while we also unveil some chinks of light for 2011 with the news that access to credit seems to be improving at last (Page 5) and consumer confidence is growing thanks to a fall in the number of people on the live register and strong export growth (Page 6). Meanwhile, retail consultant Karen Meenan advises on how to grow sales and profit in your newsagency by focusing on titles for children, teenagers and men (Page 26). Here’s hoping that the festive season will bring a welcome sales surge for all in the FMCG market and that 2011 will see the industry start to grow again.
Wishing you a very Happy Christmas and a peaceful (and profitable) New Year, from all the staff at
Finally, I’d like to take this opportunity to thank all our readers and advertisers for their continued support. Wishing you all a very happy Christmas and a prosperous New Year. “Over 53 years serving the Irish Kathleen Belton, Editorial & Marketing Director
Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton Editor: John Walshe
Advertising: Kathleen Belton
Chief News Reporter: Pavel Barter
Wine Correspondent: Jean Smullen
T A R A
In lieu of Christmas Cards this year, Retail News will be making a donation to charity.
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01,3 Contents.indd 1
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Contents December 2010
News 4Retail Sector Reacts to
Shop Profile 12Joe McGoldrickâ€™s Londis
store in Dromahair, Co. Leitrim, is a perfect example of a community store which meets the needs of its customer base.
5No Excise Hike on Cigarettes or Alcohol in Budget; Access to Credit Improving for SMEs?
Superquinn Birthday Celebrations 14Superquinn recently cel-
SuperValu Off Licence of the Year 24SuperValu Midleton, Co. Cork, has been named the Edward Dillons/ SuperValu Off Licence of the year 2010/2011.
the story of Urney Chocolates, whose Two And Two bar was once a household name throughout the country and is possibly on the way back.
6Consumer Confidence on
The Year In Review 16We look back over the stories that made the headlines in the Irish grocery sector throughout 2010.
the Rise; Board Changes at Musgrave Group.
7Bad Weather Impacts on Business; Tesco Expansion Continues; New CEO at Superquinn; Irish Butchers Using Incorrect Sell-By Dates.
On The Vine 39Jean Smullen ends the
year with some good news for the wine trade.
Future Trends 25Mintel has predicted
Shelf Life 40All the latest news and
the worldwide consumer packaged goods trends set to make an impact in 2011.
gossip from the trade.
8Musgrave Graduates in
Karen Meenanâ€™s News Rack 26If you really want to
Business Studies; Largo Foods Doubles Operating Profit; Greencore to Merge with Northern Foods; Tesco Expansion Continues.
make money from your newsagency, get focused on children, teenagers and men, writes Karen Meenan.
Ltd have announced the winners of the Centra Off Licence and Wine Store of the Year Awards 2010/2011.
Confectionery 36Karen Nolan recounts
ebrated its 50th birthday, with events taking place across all 24 stores.
Centra Off Licence Awards 35Edward Dillon & Co.
Regulars 9 Industry News 38 Drinks News Sectoral Reports 30 Breakfast Time
01,3 Contents.indd 2
Retail Sector Reacts to Four-Year Plan THE Government has unveiled its four year National Recovery Plan with fanfare, describing it as the means to restore confidence, create jobs and drive economic recovery. But is this deficit reduction document a godsend for retailers or a tightening noose around the neck of Irish grocery? Retail News spoke to a number of commentators and retail representatives about the 2011-2014 Plan and whether or not Batt O’Keeffe TD, Minister for Enterprise, has found the answer to Ireland’s woes. Staff wages have long been a thorn in the side of retailers, so the proposed cut to the minimum wage - by €1 an hour to €7.65 - was welcomed by most sides of the sector. “Wages are having a significant impact upon competition and our competitiveness,” said Tara Buckley, Director General of RGDATA. “Since the economy started to turn, over 30,000 jobs were lost in the retail sector. It’s a significant issue for people, particularly in the convenience sector, where they have more staff per customer than the multiples or discounters. They have to consider staff costs very carefully. It has meant that people either lost hours or were made redundant.” The proposed wage cut was met with opposition from trade unions and workers rights groups, however, and its implementation is not guaranteed. The opposition parties, Fine Gael and Labour, stated they would not cut the minimum wage. Since Ireland is due to face a general election in the first quarter of 2011, this could be far from the last word on the matter. For the bulk of the grocery sector, the minimum wage is irrelevant, since wages are regulated by Joint Labour
Torlach Denihan, Retail Ireland.
Committees (JLC) and are substantially higher than the norm. Torlach Denihan, Retail Ireland, welcomes the National Recovery Plan’s proposed review of regulated JLC wage structures, calling them out of touch and out of place in the economy. The JLC system, he points out, is over 100 years old, emanating from British rule in Ireland. “They are completely unnecessary,” he said. “The UK abolished the Joint Labour Committee system when they brought in the national minimum wage.” Tara Buckley also welcomed a review and potential abolishment of JLC wage structures, but she struck a note of caution in regard to the Plan’s proposed review on retail store size caps. The cap, she points out, has not stopped competition or new entrants to the Irish market. The Plan’s proposed hike in VAT rates also brings bad tidings for retailers, according to Mairead O’Grady from Russell Brennan Keane, a business advisory and accountancy firm. “The VAT rate is due to go up in two years time. Automatically, there will be products that will have to take the VAT charge. Both of the sides are squeezing, so the product is more expensive and the consumer has less money to spend.” Torlach Denihan is not getting overly worried, though, since the VAT hike is proposed for 2013: “To be honest, if Ireland gets through 2011 and 2012 and makes progress - the next two years will be critical - then we can cross the bridge of the VAT hike when we get to it.” Retail representatives were cynical about the overall impetus of the National Recovery Plan. Proposals to replace the Business Expansion Scheme with a Business Investment Targeting Employment Scheme struck commentators as hot air. Right now, the foremost thought on the minds of most retailers is
survival, not expansion. The document also fails to address the biggest problem of all: Ireland’s broken banking system. “The banking system has effectively caused these difficulties,” said Vincent Jennings of the CSNA. “Until you change the way banking has been done, you’re going to have the same problems. It’s ironic that one of the IMF mainstays is the need for competitiveness. From a retailer perspective, we have one of the least competitive banking systems available. You’re linked to extraordinarily restrictive lending practices and restrictive banking requirements. They are crying out for competitiveness left, right and centre. The one area where we need real competition, we don’t get it.”
RGDATA Director General, Tara Buckley.
The National Recovery Plan might speak of confidence, vitality and business dynamism, but from the perspective of the retailer, it does little to address Ireland’s predicament. “There should be some kind of incentive to ensure that smaller business can continue to operate, that new small businesses can open up, and that a spirit of enterprise is encouraged,” summarised Tara Buckley. “We don’t see much in the Plan that does that.”
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No Excise Hike on Cigarettes or Alcohol in Budget CIGARETTES and drink have escaped unscathed from one of the hardest hitting budgets in the history of the State. Representatives from the tobacco and drink industries were positive about the decision not to increase duties on cigarettes and alcohol. Kieran Tobin, Chairman of the Drinks Industry Group of Ireland (DIGI), welcomed the decision in light of last year’s excise reduction on alcohol, which “had the effect of stemming crossborder sales and repatriating much of the revenue lost to Northern Ireland, as well as boosting consumer spending, the retail trade, the local drinks market, and the economy in general”. Torlach Denihan, Retail Ireland, agreed that a hike in excise duty could have sent shoppers packing across the border. Cigarette manufacturers and retail representatives believe the decision not to hike tobacco price was a result of
Kieran Tobin, Chairman of the Drinks Industry Group of Ireland.
Ireland’s black market in illegal tobacco. “It is an acknowledgement from the State that there is a problem,” said Vincent Jennings, Chief Executive, Convenience Stores & Newsagents Association (CSNA). “Excise is needed to facilitate the running of the state. They just can’t afford to put up the price of cigarettes because it would be throwing more people into the smuggling net.” Despite calls from the Irish Cancer Society and Irish Heart Foundation to increase tobacco tax by 50c, Andrew Meagher, Managing Director, John Player, said a hike in charges would have encouraged smuggling. “The reality is that previous high excise policies have not reduced consumption, as some smokers have found alternatives in the illicit channel,” he said. Chloe Campen, Corporate Affairs Manger at P J Carroll, agreed: “Tax on
tobacco products in Ireland is very significant - it is, in fact, the highest in the EU. The previous ‘tax and over-regulate’ approach to cigarettes has proved dysfunctional, resulting in Ireland becoming a paradise for criminals smuggling in contraband and counterfeit cigarettes.” Wider reaching implications of the 2011 budget - such as a €10 reduction in child benefit rates, a cut in social welfare payments, and increases in petrol and diesel duty - are likely to impact on the retail trade. “The budget will reduce householders’ spending power and probably retail sales,” said Denihan. “The extent of the reduction in retail sales depends on how consumers react to the budget, to their own employment prospects and to the fact that Ireland now depends on external financial assistance.”
Vincent Jennings, Chief Executive, Convenience Stores & Newsagents Association.
Access to Credit Improving for SMEs? SMALL firms may be finding it easier to get their hands on bank credit. According to a new report from the Credit Review Office (CRO), which independently adjudicates on appeals from small businesses who are refused loans, lending is improving. The Minister for Finance, Brian Lenihan TD, said AIB and Bank of Ireland are showing signs of progress in credit loans to small businesses. Mark Fielding, Chief Executive, Irish Small and Medium Enterprises (ISME), told Retail News there has been a slight improvement in access to credit. However, there has been a reduction in the number of businesses applying for credit from banks: “Up to recently, the percentage of SME refusals from banks was in the region of 55-58%. In
September, that dropped to about 45% refusals. That’s an improvement. But under normal circumstances, in every quarter, about 37% of businesses applied
Mark Fielding, ISME Chief Executive.
for extensions to their overdrafts or new term loans. That dropped to about 27%.” Fielding said many small businesses do not approach the CRO, due to the “exasperating” process of a bank’s appeals procedure. Many businesses in small towns fear that by taking an appeal to the higher court of the CRO, they may spoil their relationship with the local bank. Either way, the recapitalisation plan does not appear to be working yet. “At ISME, we are still getting calls from businesses who have been refused, or are finding it difficult to get any kind of a positive answer from their bank. Because of the low uptake, it is hard for the CRO office to give an overall comment on the national situation,” said Fielding. 5
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Consumer Confidence on the Rise CONSUMERS are feeling better about the future, a new spate of surveys reveal. According to the latest Economic and Social Research Institute (ESRI) survey, consumer sentiment improved during November. Meanwhile, Kantar Worldpanel in Ireland statistics suggest October showed the highest growth in the grocery market since February 2009. Consumers are also looking forward to a Christmas spending splurge, according to financial firm Deloitte. The country’s 1.5m households plan on spending €1.5 billion on festive gifts. Overall, expected expenditure will be down 10.6% on 2009, yet spending on Christmas food is consistent at €250 per household. “The interesting thing about the survey - the split of the spend this year, versus last year - is that there was no real change in what was going to be spent on groceries and food over the festive period,” said Susan Birrell, Consumer Business Partner, Deloitte. “However, consumers will shop around for a good price and to get more for their money.”
Board Changes at Musgrave Group MUSGRAVE Group have announced changes in Group Board responsibilities, effective from November 22, 2010. These changes reflect Musgrave’s strategy to emerge stronger from recession and exploit synergies across the Group that will position the company for renewed growth in 2011. The changes to Musgrave’s Group Board responsibilities are as follows: Donal Horgan, currently Managing Director of SuperValu and Centra in the Republic of Ireland, has been named as MD of Budgens and Londis, based in the UK; Martin Kelleher, currently Managing Director of Musgrave Wholesale Partners, becomes Managing Director of SuperValu and Centra in the Republic of Ireland;
Consumers are emerging from a low ebb after the full details of Ireland’s banking disaster emerged during the autumn, the ESRI’s David Duffy told Retail News. “Consumers are feeling a little bit more optimistic,” said Duffy. “We’d seen a big decline in the October numbers, so to some extent a lot of the bad news had already been factored into their assessment of the situation. Consumers are not overly optimistic; they are still probably a bit gloomy. But it is not continuing to decline at the sharp pace that it was.” Reasons attributed to consumer change of heart include a fall in the
numbers on the Live Register and strong performance in exports. The Christmas period also lifts spirits. Deloitte’s survey puts Ireland second in the European Christmas spending league. “In the past, we were spending above our means because a lot of it was on credit,” said Birrell. “Clearly, credit is not as readily available as it was in the past. We noticed in the survey that a lot more people will be paying cash for their purchases this year. There was an indication that some people will use their savings to purchase, as opposed to the credit route. Spending savings may not be a good idea, but if it’s being put aside for Christmas, then maybe fair enough. There is certainly a level of concern from the Irish consumer that the worst may still be to come.” All three surveys were undertaken before the IMF bailout and the government’s hard-hitting budget, so whether or not the national mood will be as buoyant over the weeks to come remains to be seen.
Noel Keeley, currently Group Human Resources Director, takes up the position of Managing Director for Musgrave Wholesale Partners. Separately, Sharon Buckley, Group Commercial Director, will Pictured are (l-r): Martin Kelleher, new Managing assume the additional Director of SuperValu and Centra in the Republic responsibility for Supply of Ireland; Noel Keeley, new Managing Director of Chain across the Group. Musgrave Wholesale Partners; and Donal Horgan, new Tim Kenny, Group Managing Director of Budgens and Londis based in Great Britain. Finance Director, will assume the additional Ireland, the UK and Spain,” stated Chris responsibility of Business Development Martin, CEO, Musgrave Group. “The across the Group. success of that strategy has given us a Martin Hyson is retiring from platform to drive future growth in each the main board of Musgrave but of our markets and positions us to profitremains as a member of the Executive ably grow the business for Musgrave and Management Team to lead the growth our retail partners in 2011. I would like agenda in Spain. to congratulate each of the Directors on “Throughout this recession, we have their appointments and wish them every continued to invest in our business and success in their new roles.” particularly our retail partners across
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Bad Weather Impacts on Business THE recent snowstorms and resulting ice have had a negative impact on business in recent weeks, according to a new IBEC survey. “This is one of busiest times of year for companies and the adverse weather has had a very negative impact on production, sales and cash flow,” noted IBEC Director of Policy, Brendan Butler. “While the cost has been substantial, it would have been significantly higher were it not for the improved response from Government and local authorities.” The survey found that over half of businesses rate the response to the adverse weather conditions as good or very good at both national (56.2%) and local (51.1%) government level. This is a significant improvement on how business rated the response last January, when few businesses rated the national government (16%) and local authority (31%) response as good or very good. However, based on the findings of the survey, the estimated economy-wide cost of the bad weather to-date can be broken down as follows: • Cost of absenteeism: €170m per week
Sales Surge in Gift Cards
• • •
Loss of retail sales: €130m per week Loss to other services businesses: €200m per week Loss of production in manufacturing: €130m per week
IBEC points out, however, that much of the cost will be recovered over the coming weeks as business returns to normal, especially given that firms have significant spare capacity. Most of the ‘costs’ are actually sales/production postponed rather than sales/production lost permanently. This is not the case for all businesses, however, and many retailers have experienced a significant fall in sales which will not be recovered. The findings of the survey are based on 429 responses from companies from a cross-section of business sectors.
New CEO at Superquinn ANDREW Street, former Dunnes Stores Chief Operating Officer, has been named as the new Chief Executive of Superquinn. He replaces Simon Burke, who moves to the role of Non-Executive Chairman of Superquinn.
Christmas is bright for retailers this year with One4all Gift Cards. This exclusive PostPoint product will be sure to increase footfall into your store this Festive Season. Last month, we revealed that One4all Gift Card sales surge by 3000% during the final week leading up to Christmas. There’s still time to order One4all Gift Cards, so make sure you don’t miss out on this revenue opportunity during the festive period. If you would like to speak to a sales representative about selling One4all Gift Cards or ordering One4all Gift Card point of sale, please contact us on 1890 20 42 20 or check us out at www.postpoint.ie. Remember One4all Gift Cards are FREE to order, so why not order today!
PostPoint, a wholly owned subsidiary of An Post, would like to wish its retailers a Happy Christmas and a Prosperous New Year!
Irish Butchers Using Incorrect Sell-By Dates ALMOST a quarter of all Irish butchers use incorrect sell-by dates on chicken fillets distributed in gas-flushed bulk packs, according to the Food Safety Authority of Ireland (FSAI). A further 8% do not use sell-by dates on these products at all. Dr Wayne Anderson, FSAI Chief Specialist for Food Science, told Retail News that retailers are legally required to provide dates on packs of chicken. Gas-flushed packaging is increasingly used in the meat trade to increase shelf life. The fillets are sold in large tray packs with a large amount of production emanating from the
Netherlands, as well as Ireland. Many retailers make the mistake of using the shelf life on the gas-flushed pack. However, when the pack is opened, the use-by date is no longer valid. This is not a food safety issue, said Anderson: “It’s purely a spoilage issue. There has been no hint of pathogens. The amount of bacteria that causes spoilage would tend to out-compete the pathogens anyway. Besides, this chicken is raw. It’s cooked by the consumer. A raw product isn’t a ready-to-eat product.” Guidelines for gas-flushed packaging are available at www.fsai.ie
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Musgrave Graduates in Business Studies 28 SUPERVALU, Centra and Musgrave employees have graduated from the Dublin Institute of Technology, Aungier Street, Dublin, after completing Bachelor of Business Studies (Hons.) degrees and Diplomas in Retail Management. 10 students were the first graduates to complete the Bachelor of Business Studies (Hons.) degree, while 18 other students completed the Diploma in Retail Management. These programmes, run in partnership with Musgrave Retail Partners Ireland, are available exclusively to SuperValu and Centra stores and Musgrave employees. Aimed at those who have management experience, the Bachelor of Business Studies degree programme for retail management is the first degree course of its kind. In a collaborative partnership between Dublin Institute of Technology, Musgrave and their
retail partners, the programme is aimed at developing retail owners, managers and experts of the future. “These students have shown tremendous dedication, simultaneously managing their own retail enterprises while completing their studies,” noted Shea Fahy, HR Director for Musgrave Retail Partners Pictured at the Graduation Ceremony at DIT Ireland. “Despite current chalAungier Street are (l-r): Shea Fahy, Musgrave lenges, this shows the confiGroup HR Director, with graduates Samantha dence retailers have in their Moran from Centra in Gort, Galway; Barry O’Reilly from SuperValu Donabate; and Aoife Loughnane commercial future and we from Centra Gort, Galway, who all received a look forward to sharing in the Diploma in Retail Management. positive impact that this newly retail operations management and straacquired knowledge and skills tegic management. The varied curricuwill have on their businesses.” lum of the degree also includes business Among the subjects covered by the law, accountancy, premises manageprogramme are consumer behaviour, ment and health and safety. customer relationship management,
Largo Foods Doubles Operating Profit LARGO Foods, who own the Tayto, King and Hunky Dorys crisp brands, saw a massive increase in operating profit in 2009, up to €9.9m, more than twice the €3.9m recorded in 2008. Sales, however, declined to €88.2m (from €94.4m in 2008), mainly due to Largo ceasing to produce a host of own label crisps and snacks for the UK market as it was “uncompetitive”, according to Chief Executive Ray Coyle. The reasons for the surge in operat-
ing profit have been identified as a €10m reduction in Largo’s cost base, following a restructuring programme which saw employment numbers reduced to 560, from a high of 700, including a €7m investment in automation systems at its two plants in Meath and Donegal. This restructuring resulted in Largo Foods recording a pre-tax profit of €2.7m in 2009 compared with a loss of €3.8m in 2008. The company expects to post similar sales and profit levels this year.
Greencore to Merge with Northern Foods GREENCORE, the Irish convenience foods group, is set to merge with UK company Northern Foods, creating a new business called Essenta Foods. The 50-50 merger will create an Anglo-Irish business with sales of €2 billion and 17,000 staff. The boards of both companies have recommended the merger, stating that it will combine two highly complementary businesses to create an operator with an enhanced presence in the attractive private label convenience foods category with significant branded positions in biscuits (Fox’s) and frozen pizzas (Goodfella’s), as well as providing the ability to drive cost efficiencies into the business. “Essenta Foods presents a compelling opportunity for all stakeholders,” noted Patrick Coveney, CEO of Greencore. “It creates a substantial chilled prepared food company in fast growing categories in the UK which is enhanced by strong branded positions in biscuits and frozen food. The investment case is underpinned by tangible cost synergies and the platform for further growth in the UK, Ireland and the US.”
Tesco Expansion Continues TESCO’S Irish expansion steams ahead with the opening of four new stores in Swinford, Co. Mayo; Oranmore, Co. Galway; Ballybeg, Waterford City; and a Tesco Express at Newcastle, Galway City. The stores generated 105 jobs, although over 600 people applied for the positions. The store openings are part of Tesco Ireland’s €113m national investment plans for 2010 and 2011. The multiple is also investing €102m on a Christmas savings package, allowing the average customers to save via promotions and price cuts.
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SuperValu to Sell €4m of Irish Turkeys SUPERVALU has announced that it will account for approximately €4m of Irish turkey sales this Christmas. SuperValu stores expect to sell in excess of 100,000 units this year. Two local Irish producers will supply the turkeys to SuperValu’s 194 stores throughout Ireland; Monaghan based Grove Turkeys Ltd and IGWT Poultry Services Ltd. In the run-up to Christmas, SuperValu customers can collect points towards a half price turkey,as well as 5% off their Christmas shop as part of SuperValu’s Real Rewards Scheme. Pictured are Andrew Kavanagh, butcher at SuperValu Killester, and model Eva Grass.
Corry’s Come Out Tops THE Corry’s Food Hall & Café, Loughrea, Co. Galway, was recently ranked in the top three shops in Ireland by the Associated Craft Butchers of Ireland, while Corry’s Jon O’Hara won the coveted Manager of the Year 2010 award at the Retail Excellence Ireland Awards 2010. Celebrating their recent wins at Corry’s Food Hall & Café are Mike Fitzpatrick, Ready Tray Counters; Geraldine Murray; Declan Corry, store owner; Keith Greensmith, Fresh Meat Displays; and Kenneth Robinson.
Musgrave invests over €10m in Cash & Carry Outlets MUSGRAVE have announced the investment of €1m in their MarketPlace cash and carry outlet in Galway. This latest investment is part of an extensive investment programme of over €10m in the Musgrave MarketPlace brand, which has seen the transformation of a number of Musgrave Cash and Carry outlets around the country, including Dublin and Cork, with a €1m investment planned for Musgrave MarketPlace Limerick in 2011. Musgrave MarketPlace offer a number of innovative ranges, such as new authentic products sourced directly from the Far East for Asian restaurants, exclusive wines at value price points for the hospitality trade, over 500 own brand products, as well as over 200 best-selling branded lines at everyday low prices. Pictured at the announcement in Musgrave MarketPlace Galway are (l-r): Jim Bourke, General Manager, MarketPlace Galway; Galway hurler Joe Canning; and Martin Kelleher, MD, Musgrave Wholesale Partners.
Gleeson Group Launch Carnaby Brown GLEESON Group have launched Carnaby Brown onto the Irish market. A new 5.5% abv, lightly sparkling and deliciously fruity perry, made from a blend of the finest pears with a hint of white and muscat grape, Carnaby Brown is available in two variants: white and rosé. The unique combination of ingredients provides a distinctive and sophisticated taste, making Carnaby Brown different to anything else on the market. Served in an elegant 75cl Bordeaux-style bottle, Carnaby Brown occupies a unique space beyond the ultra accessible premixed drinks/vodkas and mixers, sitting alongside the fruity ciders and perries in the market, but with a nod to the “sophistication and sharability” of a bottle of wine.
Christmas Comes Early for Simon TOPAZ have agreed to provide fuel for the Simon Community’s vehicles in Dublin and Cork for the next two years. The donation is being made through the charity’s award winning ‘Food for Simon’ programme. At the moment, Dublin and Cork Simon have seven vehicles constantly on the go but this will increase in the near future with the introduction of the Visiting Support Service in Dublin. “The Simon Community does excellent work for people who for whatever reason find themselves homeless. We wanted to help the Charity in a practical way and this initiative will keep Simon on the road for the next two years, whether it’s the ‘Simon Soup Run’, the ‘Simon Rough Sleeper Team’ or any of the other essential services it provides to people who are homeless,” noted Paul Candon, Marketing & Corporate Services Director of Topaz, who is pictured with Jennifer Craig, Simon’s ‘Food for Simon’ Co-ordinator. 9
09 Industry News 3.indd 1
New Products from Rosie’s Broadway Bagels WATERFORD food company, Rosie’s Broadway Bagels has just launched a new product range incorporating six different products, including All American Chocolate Chip Cookies, Savoury Bagel Breadcrumbs and Mini Bagels. “Chocolate lovers will be thrilled with the variety of our All American Chocolate Chip Cookies, our Decadent Chocolate Brownie Bites and our Heavenly Chocolate Chip Cookie Dough,” enthused Rosie Sheehan. The latest products from Rosie’s Broadway Bagels are available in both Ireland and England through Irish retailers Fallon & Byrne and a number of independent retailers and Whole Foods UK. Pictured enjoying the new range are Emma Power (6) and Owen Sheehan (7).
Erin Warms Up Afternoon TV ERIN is the new sponsor of RTÉ’s Four Live and The Daily Show. The two flagship afternoon shows will bring the brand to television screens right across Ireland over the next year, having already reached over a million housekeepers since they began airing on September 20 this year. The sponsorship, which is valued at €350,000, will run until April 2011 and comprises a mix of both 10 and seven-second stings per show, per day, as well as the inclusion of the Erin logo on all programme promotions. Pictured are (l-r): Maura Derrane, presenter of Four Live; Rachel Keogh, Brand Manager, Premier Foods Ireland; and Claire Byrne and Dáithí Ó’Sé, presenters of The Daily Show.
Nivea For Men on the Ball
Cleaning Your Cares Away
PICTURED at the recent Ireland v Norway international soccer friendly in the AVIVA Stadium are (l-r): Wim Koevermans, FAI High Performance Director; Packie Bonner; John McKeown, MD, Nivea Ireland; and Philip Leddy, the lucky winner of a recent Nivea For Men competition, who won a VIP box to watch the game along with his friends. Philip also met with the Irish soccer legend Packie Bonner and received a signed jersey from the current Irish soccer squad. Nivea For Men are the official skincare supplier to the Irish soccer team.
PICTURED are Stephen Dowling, Customer Account Manager, Home Care, Unilever (right), with Regina O’Connor, winner of the Clean Your Cares Away Superquin / Unilever Competition, and Superquin Waterford store manager, Jonathon Aylward. Regina won €5,000 for her slogan: “I would clean to perfection with the Superquinn Unilever Selection”.
Join the MiWadifesto! MIWADI has unveiled its new look and to celebrate, MiWadi is asking kids all over the country what they would add to their world to make it a more fun place to live in! MiWadi wants to hear all of the fascinating and magical suggestions from kids across the country and will collate a MiWadifesto with the most colourful suggestions, ideas that fill a dull moment with colour and make the mundane fantastic. MiWadifesto will create a world designed by children, for children. Pictured launching MiWadifesto are Christine Keohane, MiWadi Marketing Manager, and RTE’s Lucy Kennedy, alongside six-year-old Andrew Paul and six-year-old Lily Dunne-Flemming, both from Dublin. See www.miwadifesto.com for more information. 10
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SPAR Serves Up Tasty Treat on The Apprentice A BRAND new product from Irish supplier Broderick’s, the Chilly Brrrr Brrr Slippy Slice as featured on TV3’s The Apprentice, is now available in SPAR stores nationwide. “The Broderick’s Winter Slice is a perfect fit with our ‘Yes to Irish’ campaign, which recognises the value that Irish consumers place in Irish-made products,” noted Willie O’ Byrne, Managing Director, SPAR Ireland. “SPAR’s involvement with The Apprentice this year has been extremely exciting for the brand and our retailers, who were involved in selecting the winning product.” Pictured at the launch are (l-r): Barry and Bernard Broderick of Broderick Brothers with Suzanne Weldon, Marketing Director, SPAR.
BuyLo Opens in Waterford WATERFORD’S new Irish low cost discounter opened recently and is already proving extremely popular with people living in the locality. The new 10,500 square feet BuyLo store is conveniently located on the Cork Road and employs 10 people. A spokesperson for BuyLo reported that local interest to the opening is extremely encouraging: “We are overwhelmed by the visible excitement of local people to the new store opening! We anticipated that our new discount store would be popular locally, given the popularity of our recently opened Killarney store, but the first few days of trading have so far exceeded our expectations.”
All Blacks Join MACE for Charity NEW Zealand All Blacks Joe Rokocoko, Ma’a Nonu and Anthony Boric took time off from their match preparations this November to help Brent Pope launch his new children’s book ‘Bones’ in aid of the Irish Osteoporosis society charity sponsored by MACE. Also pictured is Willie O’Byrne, MD of BWG Foods (operators of MACE in Ireland). Aimed at 7-12 year olds Bones is available exclusively at MACE stores nationwide or from www.irishosteoporosis.ie. “As a retail group at the heart of over 240 local communities across the country, MACE are delighted to support this very worthy community and healthcare initiative,” noted Willie O’Byrne.
Recipe Competition on Eggs.ie THE search is on to find Ireland’s best recipes for baking cakes, muffins, cupcakes or buns that are made using eggs. Budding and seasoned home bakers from every county are encouraged to enter this recipe contest, which is running on the newly revamped eggs.ie website. The popular website is run by Bord Bia in conjunction with Irish Egg Marketing and is packed with recipes, nutritional information, a children’s section and lots of other information about eggs, from quality assurance to cooking tips. Full entry details and entry forms are available on eggs.ie or by calling Bord Bia on 01 6685155.
This is Rugby Country GUINNESS has launched its latest advertising campaign to support the Guinness Series and upcoming 2011 RBS 6 Nations. As part of the ATL campaign, a new TV commercial was created, entitled ‘This is Rugby Country’. Directed by award-winning photographer, Alex Telfer, who is well known for his powerful, realistic and honest imagery, the TV commercial features real rugby fans as opposed to actors. “We want to show that rugby is part of who we are, it is embedded in our communities across the country, which is why we feel there is a real value in featuring genuine fans in these ads, not actors,” said Guinness Senior Brand Manager, Stuart Kinch. “This is one of the key ingredients of the campaign.”
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Community Spirit Joe McGoldrick’s Londis store in Dromahair, Co. Leitrim, is a perfect example of a community store which meets the needs of its customer base.
Pictured outside Londis Dromahair are Joe McGoldrick, store owner, McGoldrick’s family has run a shop and Shane Hopkins, Londis Retail Development Manager. in the village of Dromahair in Co. Leitrim since his grandfather opened their first store some 60 years ago near the train station. The family shop Meeting Retailers’ Needs has seen its fair share of challenging times since then, “At the time of the revamp the market had started to turn; including recessions and the closure of the train station, but trading conditions were getting tougher,” Joe recalls. “I it has survived them all. This most recent recession is diffelt that if I was going to invest in the shop I should look ferent, however, because Joe and Sinead McGoldrick have at what symbol groups could offer me. I visited a variety the support of an excellent partnership with Londis to help of shops and spoke to a number of different groups. Very them through it. quickly, I came to the conclusion that for me, Londis ticked Joe and Sinead took over the store in 2000, when the all the boxes. family shop was still trading as a fully independent grocery “The back-up the Group offered, support, advice, experretail outlet. In the second half of 2007, the cracks had tise and the Londis image, it was all centred on my needs: definitely started to show in Ireland Inc. and Joe decided the needs of the retailer. The people I met, like Shane he had two options: invest in the shop or sell up and leave Hopkins, our Londis Retail Development Manager, were the trade. Joe and Sinead chose the former, and Joe decided people that I felt I would enjoy working with and also peothat the time was ripe to work with a symbol group partner. ple that had a significant contribution to make to my business. Nothing was a problem for them: it was all about solutions and opportunities.” Things moved quickly after Joe joined the Group and by September of 2007, work had begun on the revamp of the shop. As well as introducing the Londis branding to the store, the project consisted of increasing the retail space by 50% from 2,000 to 3,000 square feet. Although Joe kept the shop open for most of the duration, it did need to close for five weeks, a nervous time for any retailer. With a similar sized symbol group shop in the village, Sligo town only 10 miles away and Enniskillen only a 45 minute drive away, there was always the chance the customers would not return. But they did return, thanks to the strategy worked out by Joe and Londis. 12
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“People in Dromahair like to have a local shop in the town and they will support it if they see it working to support them,” he continues. “Londis have been exceptional over the last couple of years in terms of working hard to drive down costs for their retailers so that we can keep our prices competitive. Londis’ Heritage brand offers great value for money and it is proving very popular with customers. On branded goods, with the WOW offers, we are able to offer customers the value for money they are looking for.”
Reacting to a Changing Market
Increased Range When the project was completed in March 2008, the builders had left not just the shop, but most of the country, so the emphasis in the deli switched away from the breakfast roll and towards more healthy options. The larger shop accommodated a significantly increased range of goods, with an emphasis on fresh produce. The strong offering of locally produced goods, such as cheese from Drumshanbo, local goats cheese, ice-cream made in Leitrim and locally supplied fruit and veg from the Wild Wellied Women brand, shows Joe’s commitment not just to the town but to the community at large. The significance of that support for local businesses is not lost on the people of Dromahair. “The whole focus of the investment was to make the shop better suited to the needs of the town,” Joe notes. “Most people living here work in Sligo, so in the morning we have a lot of trade looking for food-to-go. The day is quieter and in the evenings, it picks up because people will do their grocery shopping in town if the local shop can come close enough to the value they would get if they drove to a large multiple in Sligo and did a large, inconvenient weekly shop. That was the key to this, being able to offer a complete package, including value for money: for the last couple of years, that has been the most important thing in grocery retail.
While admitting that business has been tough over the last couple of years, particularly for shops near the border, Joe feels that his partnership with Londis allows him to “offer the right value and quality to keep customers coming back. The grocery retail market in the Republic has reacted quickly to a quickly changing market. It is very tough, but I am optimistic that together with Londis, we’ll be able to weather the worst of the downturn and continue to serve the community in Dromahair.”
The cost cutting efforts, price point focus, investment in the shop, commitment to the town and local community, allied to the twin concepts of hard work and determination, on the part of Joe and his partners in the Londis Group, have seen the shop weather one of the steepest recessions in the hisFact File tory of the Owner: Joe McGoldrick State, as Location: Main Street, Dromahair, Co Leitrim it serves Size: 3,000 square feet the Number of needs of Staff: 6 full time, 5 part time its local Opening customer Hours: 07:30-22:00, Monday-Saturday; base with 09:00-21:00, Sunday. aplomb. 13
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Superquinn Celebrates Half Century Superquinn recently celebrated its 50th birthday, with events taking place across all 24 stores.
celebrated its milestone 50th birthday recently, with celebrations taking place in the retailer’s 24 stores, with slices of its famous birthday cake for customers, along with music, entertainers, food sampling throughout the stores, including the famous Superquinn sausages, and triple points for Reward Card customers on their shopping all day. Indeed, Superquinn sampled thousands of slices of birthday cake throughout the day as shoppers joined in the fun and festivities in-store. Founded by Feargal Quinn, Superquinn opened its first store in November 1960, pioneering the concept of self service shopping, and now has 24 stores across Leinster and parts of Munster. Today, the company is owned and operated by Select Retail Holdings Ltd and remains true to the values that contributed to its success over the years, namely a commitment to sourcing the best quality fresh Irish foods, providing great customer service and an enjoyable shopping experience.
A Massive Milestone “Today is a huge milestone for an indigenous Irish grocery business,” noted Superquinn’s Executive Chairman Simon Burke. “Superquinn is part of the fabric and history of many communities in Ireland, and has a long tradition of supporting local Irish food businesses and offering the best quality fresh foods. I’d like to thank our dedicated colleagues and our loyal customers for their support, many of whom grew up with Superquinn themselves. With store expansion and business growth
Superquinn founder Feargal Quinn, Executive Chairman Simon Burke and junior bakers Daisy Cooney and Alexander Nevin are pictured celebrating the retailer’s 50th birthday.
now back on our agenda following a tough couple of years, we look forward to a great future for Superquinn.” Over the years, Superquinn has remained at the forefront of innovation in the retail sector, with a long list of ‘firsts’ and ‘onlys’ after its name: from the first and only supermarket scratch bakeries launched in 1973, to the introduction of the first loyalty card in 1992, now know as Superquinn Reward Card; and from pioneering SuperScan technology in 1996, to being the first Irish grocery multiple to offer online grocery shopping in 2000. Superquinn was also the first Irish supermarket to receive the Quality Mark for Service in Ireland in 1991.
Superquinn’s Enduring Appeal Founder and non-executive chairman, Senator Feargal Quinn says he’s delighted to see Superquinn
celebrating this major milestone: “When I opened my first store 50 years ago, it was to bring a new retail concept to Irish consumers, which is now the blueprint for all grocery retailing in Ireland today. The enduring appeal of Superquinn lies in its heritage and history, its commitment to fresh foods and local sourcing, and of course our colleagues and customers who make it a great place to shop.” Superquinn’s 50th celebrations have included headline sponsorship of the Taste of Dublin Festival 2010, publication of the first ever Superquinn cookbook ‘A Passion for Food’, the Golden Ticket promotion with a €50,000 prize fund, and a series of special customer evenings and store events. For more information about Superquinn and its store locations, visit www.superquinn.ie.
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a blend of
BLENDED WITH TALENT
Year in Review
2010: A Year in Retailing JANUARY THE impending arrival of a new code of practice for the grocery sector receives a mixed reaction. Minister for Enterprise and Employment, Tánaiste Mary Coughlan TD is set to introduce an ombudsman to referee disputes in the grocery sector and intends to introduce the code on a voluntary basis, and later make the code statutory under the merging National Consumer Agency and the Competition Authority. Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), believes a code could be as beneficial for retailers as suppliers, while RGDATA believe the code should address the relationship between smaller retailers and suppliers.
owned by GWL, claims a 13.7% stake of convenience alcohol sales. PJ CARROLL responds to the budget by reducing the Retail Selling Price for its well-known tobacco brands, passing on the VAT reduction to consumers. SUPERVALU are announced as the highest performing retailer over Christmas 2009, according to a report from Taylor Nelson Sofres (TNS). JOHN Player & Sons launch a new corporate identity. FLAHAVAN’S launches a heavyweight TV and radio advertising campaign, with an overall spend of almost €255,000.
FE B R U A R Y
KRAFT Foods purchase Cadbury in a $19.6bn (€14.03bn) deal, creating the world’s biggest confectionery company.
SCALLY’S SuperValu, Clonakilty, Co. Cork, win the inaugural Bord Iascaigh Mhara (BIM) Seafood Circle award for ‘Supermarket Seafood Counter of the Year’.
THE BARRY Group purchases the Carry Out off-license business, adding 52 specialist off-licenses to its retail stock of Costcutter, Buy Lo and Quik Pick brands. Carry Out, previously
THE FSAI’s Food Safety Consultative Council debate the benefits and disadvantages to consumers of buying food produced in Ireland and the current legislation in place to regulate
THE new Finance Bill dramatically increases the maximum fine that can be handed out a person caught smuggling cigarettes into the country, up from €12,695 to €126,970. Retailers Against Smuggling, the representative group for Ireland’s tobacco retailers, welcomes the Government’s decision to increase the penalties for tobacco smugglers but warns that more needs to be done. Pictured is Benny Gilsenan, Retailers Against Smuggling.
food labelling at an open meeting. Speakers include: Jim Power, Love Irish Food; Raymond O’Rourke, Food and Consumer Lawyer; Dermott Jewell, Consumers Association of Ireland; and Margaret Jeffares, Good Food Ireland. SUPERQUINN launches a new range of wines from South America, priced from €6 to €22.99.
BORD Bia predict returned export growth in 2010 for Ireland’s food sector, following a difficult 2009. “The prospects for 2010 point to a return to growth for Ireland’s food sector. The potential for stronger export revenues from the key dairy and meat sectors, and investments by prepared food companies to broaden their market presence on the Continent, will help exports as 2010 progresses. However, developments in sterling and consumer sentiment remain critical,” noted Dan Browne, Chairman, Bord Bia, pictured (left), with Aidan Cotter, CEO, Bord Bia.
DUNNES Stores brings a High Court challenge against the Revenue Commissioners for a tax assessment of €36.4m, based on the levy for plastic shopping bags. The retailer claims that the Revenue Commissioners’ tax assessment, which covers a fouryear accounting period, includes bags which are not subject to the Government levy, as the bags in question were used in the company’s Northern Ireland stores and were also used for purposes other than by customers at the till. BARRY & Fitzwilliam secure the Irish distribution rights to the premi-
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um liqueurs Disaronno and Tia Maria from Illva Saronno S.p.A. SUPERVALU is the first retailer in Ireland to introduce the Bord Bia Quality Assurance Scheme for Lamb, which offers SuperValu shoppers assurance on both the quality and origin of all Lamb purchased in-store.
SIX months on from its launch, Love Irish Food has proved a tremendous success, with membership tripling to the point where 73 brands are now part of the initiative.
APRIL Pictured are (l-r): Gerry Light, Mandate Assistant General Secretary, Simon Burke, Superquinn Executive Chairman and John Douglas, Mandate General Secretary.
BULMERS Berry launches in Ireland.
MARCH THE European Court of Justice rules that Irish legislation setting a minimum price for tobacco products, including cigarettes, is illegal. The ECT also rule that “the manufacturers and importers of manufactured tobacco are to be free to determine the maximum retail selling price for each of their products”.
Pictured at Centra Dame Street, Dublin 2, are Enda Martin, Centra Store Owner with Tara Buckley, RGDATA, and Padraic White, Chairperson, Responsible Retailers of Alcohol in Ireland.
THE Responsible Retailers of Alcohol in Ireland (RRAI) embarks on a new campaign to highlight the Voluntary Code of Practice on the Sale and Display of Alcohol Products in Mixed Trade Premises, which it claims has resulted in “striking changes in the sale and display of alcohol” in Ireland. The RRAI are urging members of the public to ensure that their local retailer is adhering to the Code and calling on consumers to complain if a retailer is deviating from it. The Barry Group, Jacob Fruitfield Food Group and Java Republic Roasting Company are amongst the winners of the Deloitte Best Managed Companies Awards Programme. MUSGRAVE Wholesale Partners report strong sales of their ‘Good Value’ private label range.
Year in Review
Chairman of the Oireachtas Joint Committee on Enterprise, Trade and Employment, Willie Penrose, TD. RETAILERS have been engaging in “unfair practices” in their relationships with suppliers, according to a report by the Oireachtas Joint Committee on Enterprise, Trade and Employment, which identifies serious irregularities within the market that the Government must act to eliminate. The report, ‘SupplierRetailers Relationships in the Irish Grocery Market’, makes a number of key recommendations to ensure that fair and competitive practices are adhered to within the industry. Among those recommendations are: • The introduction of a legislative Code of Practice to ensure fairness and equality within the sector and a system for measuring compliance with this Code; • Agreeing a method by which all relevant data pertaining to the market, including profit margins of suppliers and retailers, is put into the public domain; • Establishing a cross-border advisory group to look for inequities within the retail market; • Considering methods to facilitate suppliers and retailers in reporting incidences of unfair practice; • Educating consumers about the importance of local food culture and support local business.
RETAIL Excellence Ireland (REI) releases the names of certain landlords who they claim need to work in closer co-operation with retailers on the issue of rent. REI is appealing to
SUPERQUINN and Mandate Trade Union agree a new, innovative partnership agreement which will see the organisations working more closely together to enhance the business as well as the lives of the 3,000-plus Superquinn employees countrywide. The agreement, entitled ‘Working Through Partnership’ (WTP), which includes two other unions, SIPTU and BFAWU, is designed to nurture and protect a consultative approach to development and progress in the business is described by Mandate’s Assistant General Secretary, Gerry Light, as a model for how all retail companies should operate in Ireland. these landlords to engage in meaningful discussions with their tenants. ADM Londis plc release their annual results, for the year ended December 31, 2009, with profit before tax reported at €2.4m, on a wholesale turnover of €269m and Group Retailer sales of €560m. RETAIL Ireland says that insolvency figures for the first quarter of 2010 confirm the extent of the crisis facing the retail sector. DIGI release ‘Drinks Market Performance 2009’, compiled by DCU economist Anthony Foley, which reveals that the drinks market in Ireland suffered a major 8.9% decline in 2009 as a result of falling consumption, driven by the historically weak national economic situation and ongoing cross-border purchasing of alcohol. TOGETHER with Oireachtas na Gaeilge, Gala develops the new Gala 17
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Year in Review
Gael Star of the Year Award, where readers of the Irish Independent and Foinse are invited to vote for their favourite Irish language media star.
liqueur brands: Tullamore Dew, Carolans, Frangelico and Irish Mist.
THE Food Safety Authority of Ireland (FSAI) publish a comprehensive guide to food law to assist artisan and small food producers who have started or are planning to start a new food business. A NEW spread that combines honey and cream cheese created by UCC students is the winner of the UCC New Food Product Development Showcase. MACE launch a heavyweight TV ad campaign, fronted by journalist and chat show host Brendan O’Connor. BWG Foods are investing €1.2m in the campaign, which also includes a wide range of other marketing initiatives.
MAY CORONA Extra sponsors the Corona Fastnet Short Film Festival in Schull, West Cork. FEWER shoppers are crossing the border into Northern Ireland to buy goods, according to Experian’s Journal of Cross Border Studies in Ireland. In the first three months of 2010, footfall to Northern Irish high streets and shopping centres fell by almost 6% over the same period last year. A NEW facilitator is been appointed for Ireland’s Grocery Code of Practice, after the withdrawal of David Byrne, the former Attorney General and European Commissioner, from the position. John Travers, the former Chief Executive of Forfás, will talk to relevant stakeholders over the months ahead in order to flesh out a voluntary code. MICHAEL Carey, Executive Chairman of Jacob Fruitfield Food Group, and Aidan Heavey, CEO of Tullow Oil, are named UCD Business Alumni of the Year. A REPORT from JTI Ireland reveals that Irish retailers lost €692m to the counterfeit cigarette trade in Ireland in 2009.
SCALLY’S SuperValu, Clonakilty, Co. Cork is named SuperValu of the Year 2010. The store receives the award at the group’s national conference, held in the Malton Hotel, Killarney. Eugene and Catriona Scally are pictured receiving the SuperValu of the Year 2010 Award from Donal Horgan, Managing Director, SuperValu, Ciaran Levis, Sales Director, SuperValu and Shane Nolan, Corporate Markets General Manager, Eircom, the competition sponsors.
THE Revenue Commissioners are planning a series of spot checks in retail outlets across Ireland. As part of the checks, anonymous Revenue workers will carry out test purchases to ensure cash is not being pocketed, testing cash registers, and other Electronic Point of Sale systems. MANDATE Trade Union accuses retail firms of using the recession as a smokescreen for profit, forcing pay cuts, unnecessary redundancies and reduced conditions. RYAN’S SuperValu is set to create 30 new jobs as part of a €10m expansion of the existing store in Glamire, Co. Cork. PLANS are dashed for a new supermarket complex in Castlerea, after authorities called it an undesirable out-of-town development. ONE of Ireland’s most prominent literary characters, Sligo-born Neil Jordan is inducted into the Hennessy X.O Literary Awards Hall of Fame. PREMIUM spirits business and independent family distillers, William Grant & Sons Holdings Ltd enters into a binding agreement for the purchase of the shares and assets of C&C Group plc’s spirits and liqueur business for €300m. The purchase will include the C&C portfolio of Irish spirits and
MARKS & Spencer take top spot as the most reputable company in the Irish retail industry and fourth spot overall in the top 10 most reputable companies in Ireland, as Corporate Reputations launched the results of the Ireland RepTrak 2010 study. PREMIER Foods Ireland announce the appointment of Steven Jones as their new Commercial Director.
NESTLÉ Ireland are to take part in the ‘Food for Simon’ Programme and provide approximately 150,000 cups of Nescafé Gold Blend coffee to Simon’s services, where support and shelter is provided to people experiencing homelessness. COSTCUTTER renews its broadcast sponsorship of the hugely popular CSI shows on RTE 2 for a second season, totalling 65 new episodes across CSI New York, CSI Miami and CSI Las Vegas shows. MAY sees a 0.5% increase in consumer spending, the first after 17 months of consecutive decline.
JUNE RETAILERS call for the proposed grocery code of practice to allow smaller stores to voice complaints against suppliers. TWO of the country’s leading poultry firms are to come together in a move designed to accelerate market growth and development for the enlarged business. Moy Park Limited, which is part of the Brazilian food company Marfrig, is to acquire O’Kane Poultry Limited, subject to due diligence. VALUE Centre opens a state-of-the-art facility in Wicklow, following a €2m investment by the Wholesale Division of BWG Group to upgrade and relocate the facility from its previous location.
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THE National Lottery reveal their 2009 annual results, which saw €263.5m raised for good causes in 2009, while overall sales of €815.1m were achieved, compared to €840.1 million in 2008, a drop of 3%.
Year in Review
GUINNESS confirm that Arthur’s Day is back this year with events taking place in Dublin, Cork and Galway, as well as other festivities happening throughout the country on Thursday, September 23.
LANDLORDS reject almost a third of retailers’ requests for rent reductions, according to a survey by Retail Excellence Ireland. NEW legislation promises to consolidate over 70 pieces of alcohol legislation, dating back to 1833. The Sale of Alcohol Bill replaces the Licensing Acts of 18332008, the Registration of Clubs Acts 1904-2008 and unites over 600 statutory provisions. The move is welcomed by NOffLA Chairman, Jim McCabe (pictured):”I think it’s a good idea to have a codification bill that brings everything up to date. There are many grey areas in the liquor bills.”
THE Bord Bia report, Pathways For Growth, reveals that Ireland should adopt a strategy of developing a worldclass agricultural industry by 2016 and set itself the goal of becoming the most efficient, most highly innovative food and drink country in the world.
AT its first AGM, Retailers Against Smuggling, the representative group for Ireland’s tobacco retailers, calls for a Garda Task Force to be established to directly tackle the growing issue of illegal cigarette selling and the detrimental affect it is having on the legitimate Irish retail trade. GLANBIA Consumer Foods wins the Corporate Social Responsibility Award at the All Ireland Marketing Awards 2010 for its ‘Avonmore Big Picnic for Barretstown’ campaign. GREAT Gas Petroleum (Ireland) Ltd launches the GreatGas FuelCard, offering motorists a faster, more convenient and very cost effective way to pay for their fuel at over 750 forecourts nationwide. THE Irish Daily Mail has been named as International Rules Series sponsors, while TG4 are sponsors of the Irish team for the games against Australia in October.
THE Class of 2010 from the BWG Foods Diploma in Retail Management, run in partnership with Dublin Institute of Technology, have received their Diplomas in a special graduation ceremony held at DIT Aungier Street. In all, 23 retailers and BWG Retail Operations Advisors picked up their Diplomas, becoming the first students to complete the two-year programme. Pictured at the graduation ceremony for the BWG Foods Diploma in Retail Management are Malachy Hanberry, Sales & Retail Advisory Services Director with BWG Foods, Gold Medal winners James Scanlon, SPAR Henry Street, Limerick, and Lorraine Rabbitte, SPAR Santry, along with Willie O’Byrne, Managing Director, BWG Foods.
SMITHWICK’S is awarded two gold medals in the prestigious Monde Selection Quality Selections 2010 for both Smithwick’s Superior Irish Ale and the brand’s variant brewed for the American market.
MUSGRAVE Group plc announce the appointment of Seamus Scally as non-executive Chairman designate, to succeed Hugh Mackeown from January 2011.
JULY FOOD industry and retail representatives question a report that suggests Ireland has the second highest prices in the EU for food and drink. The report from Eurostat, the statistical office of the European Union, suggests Irish prices are 29% more expensive than the European average. According to the report, Ireland has the highest tobacco prices in the EU, its bread and cereals are 32% dearer than the EU average, Irish meat products are 20% above the EU average, while alcohol prices are a massive 67% above the average. However, industry spokespeople have drawn attention to the fact the report is from 2009, and since then, food and drink prices have fallen by 8.6%, reflecting 2006 levels. DAYBREAK announce the launch of their new ‘Retailer Zone’ website, offering a number of important benefits for retailers, acting as a central hub for communications from Musgrave. The Retailer Zone also features a local marketing toolkit that allows stores to create their own personalised marketing materials, such as special offer posters, leaflets, consumer loyalty cards, recruitment adverts etc. 19
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RGDATA oppose repeal of the Retail Planning Guidelines, maintaining that the current guidelines, in place since 2001, are successful and effective where operated.
THE National Consumer Agency publishes its third annual report, revealing significant enforcement activity for 2009. In total, 96 enforcement activities were undertaken by the Agency using the wide-ranging powers it has under the Consumer Protection Act. PATRICK Bewley is presented with a Lifetime Achievement Award from the Speciality Coffee Association of Europe (SCAE) as part of the Awards for Coffee Excellence at the Caffe Culture trade exhibition in London.
ONE year after the cigarette display ban was introduced, cigarette sales in shops have dropped by a massive 40%, while smoking rates have increased to 31%. The skew in statistics suggests consumers are turning to the black market.
TESCO Ireland is to invest €113m in Ireland over the coming year, including opening seven new stores, redeveloping another and creating 748 new jobs across the country. New stores, creating 688 jobs, will be opened in Kinnegad, Westmeath (80 jobs), Oranmore, Galway (110), Swinford, Mayo (90), Ballybeg, Waterford (110), Thomas St, Dublin (16), Kimmage, Dublin (16) and Naas (266). The investment plan also includes a replacement store in Roscrea, Tipperary that will result in 60 additional new jobs.
LEGAL expert Gerald FitzGerald is appointed to the Competition Authority and assigned the role of Director of the Authority’s Cartels Division.
WELLNESS Water, the first pure Irish spring water in a 100% environmentally friendly bottle, is launched by Clare Spring Water Ltd.
LEO Crawford, Group Chief Executive of BWG Group, is appointed president of IBEC.
BRITISH American Tobacco enters into a cooperation agreement with the European Commission and the Member States of the EU to collectively tackle the problem of illicit trade in tobacco. RUSSIA’S wheat crisis threatens to spill over to the rest of the world, as the country’s worst heat-wave on record leads Prime Minister, Vladimir Putin, to implement a ban on grain exports until the end of the year.
THE Director of the Alcohol Beverage Federation of Ireland (ABFI), Rosemary Garth (pictured), welcomes the findings of the Report of the Working Group on Sports Sponsorship by the Alcohol Industry, which recognises the role the drinks industry plays in supporting thousands of sports teams and events across Ireland.
CONSUMER confidence in Ireland reaches its highest point in three years, according to the latest Consumer Confidence Monitor Results.
THE EU launches a new organic logo, with the Euro-Leaf logo indicating to both retailers and shoppers that a product meets tough organic standards.
JTI Ireland launches a nationwide youth access prevention programme aimed at providing one consolidated solution to tobacco retailers in preventing the sale of tobacco to minors. Entitled ‘Show Me I.D – Be Age Ok’, the initiative is part of JTI’s ongoing commitment to prevent youth access to tobacco products in Ireland.
SEPTEMBER THE REVENUE Commissioners introduce a confidential free-phone number (1800 295 295) for members of the public to provide information about smuggling or the sale of illegal cigarettes. THE Bank Watch survey by the Irish Small and Medium Enterprises Association (ISME) reveals that 55% of businesses that applied for overdrafts, extensions to overdrafts, new loans, or other facilities from banks over the three months leading up to June 2010 were turned down. This statistic is in contrast to claims from banks that loans are given to eight out of every 10 applicants.
RETAIL groups, including RGDATA and Retail Ireland, react angrily to a survey by the National Consumer Agency (NCA), which suggests the Irish grocery market suffers from a lack of competition. Torlach Denihan, Director of Retail Ireland (pictured), suggested the Agency put a spin on the results of the survey. “I’ve no doubt about the bona fides of those who have done the numbers, but the NCA have taken this research and suddenly jumped from a survey of grocery goods in four stores to say there isn’t enough competition. We have a problem with the overall conclusion they have drawn from the numbers, particularly in regard to their assertion about a lack of competition in the market. We just find that absolutely ridiculous.”
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SLIGO Senator Marc MacSharry calls for action against the “ravaging effects” of cross border shopping on local economies in border counties. ONE of the most respected and loved figures in the Irish grocery sector, George Cooke, founder of the National Grocers Wholesale Alliance (NGWA), which later merged with Keencost to become the Stonehouse Group, passes away.
THE Barry Group’s year-end results for 2009 show that group profit before tax in 2009 was €3m, an increase of over 12% on the €2.67m it earned the previous year, outperforming the entire grocery industry. “We’ve managed to increase our net profit on a reduced turnover through aggressively managing our cost base and prudent management of credit risk,” commented Managing Director of Barry Group, Jim Barry (pictured).
gramme, including significant savings on a variety of activities such as holidays and family days out at some of Ireland’s most popular tourist destinations. SUPERQUINN launch a new Essentials value range, which offers customers Superquinn quality products at extremely competitive prices. With almost 250 lines, 85% sourced from Irish suppliers, the essentials range allows customers to make big savings on their weekly staple groceries. With an investment of €2.5m, this is the largest product launch in Superquinn in over 30 years.
TOP launch six Motorway Fuel Card Truck Stops as part of the National Roads Authority, Motorway Service Area (MSA) facilities.
OCTOBER IN the largest all-island green electricity deal of its kind, Musgrave Group signs an agreement with Airtricity to supply green electricity to its network of depots and sites across the island of Ireland. Under the terms of the contract, Airtricity will supply green electricity to all Musgrave Group owned facilities on the island of Ireland, both North and South, and via an affinity scheme to its SuperValu, Centra and Daybreak stores in the Republic of Ireland and SuperValu, Centra and MACE stores in Northern Ireland. The overall deal is worth in the region of €25m. Dermot McGovern of Airtricity is pictured with Ingrid de Doncker and John Curran of the Musgrave Group at the announcement.
CARLING announces its sponsorship of the inaugural Carling Nations Cup, a new international football tournament which will see the Republic of Ireland take on Northern Ireland, Scotland and Wales at the new Aviva Stadium in Dublin early next year.
SEVEN Love Irish Food brands win a total of 33 Gold Stars at this year’s Great Taste Awards. Follain, Flahavans, Caherbeg Free Range Pork, Butlers, Cully and Sully, Bewleys and Robert Roberts all won Gold Stars for one or more of their products.
KELLOGG Company, the world’s leading producer of breakfast cereals, announces the creation of 50 highvalue jobs in Ireland. The company is recruiting for senior positions in many of its European Marketing, Finance and Sales functions at its European headquarters in Swords, while its Irish business is also recruiting a number of sales people to join its Irish sales team.
COOLEY Distillery matches the record it set in 2009 by winning 10 Gold Medals at the 2010 International Wine & Spirits Competition (IWSC).
TESCO announce a major re-launch of their Clubcard Programme. The re-launch includes a new card, new look and easy-to-read statement, as well as an improved Deals pro-
Year in Review
THE second Arthur’s Day is a massive success, as thousands of people come together at 17.59 on September 23 to raise a toast to Arthur Guinness. Over 1,500 events take place across the island of Ireland, with over 150 confirmed artists and 200 hours of live music performances, including Snow Patrol, Brandon Flowers, David Gray, Manic Street Preachers and Paolo Nutini.
BALLYGOWAN Pink launches a new 60cl sportscap bottle to the range to coincide with Breast Cancer Awareness Month. PREMIUM spirits business and independent Scottish family distillers, William Grant & Sons open a new Global Marketing Office in Dublin.
SMIRNOFF launch the Smirnoff Nightlife Exchange Project, an ambitious global initiative to discover and celebrate the best of nightlife from around the world.
THE biggest names in the Irish grocery sector talk to Retail News about their Budget wish-list. IBEC warns Government not to overtax the country in the midst of economic recovery. RGDATA call for measures that will stimulate employment and not curb spending. BWG Foods’ CEO Willie O’Byrne (pictured) wants “a stimulus to encourage consumer spending 21
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Year in Review
designed to release into the economy some of the personal savings evident in Central Bank data”. ISME call for the reform of State-influenced business costs. The CSNA want an end to bank charge increases, while ADM Londis call for action to streamline the level of compliance and red tape imposed on retailers and for measures to free up access to credit for small businesses. FINE Gael slams the Government’s plans to use teenagers to carry out test purchases of alcohol in off-licenses, describing it as “bizarre and ill-conceived”. Under the Test Purchasing Alcohol Scheme, introduced by the Minister for Justice and Law Reform, Dermot Ahern, on October 1, Gardaí can send teenagers aged 15, 16, or 17 into a licensed premises to attempt to buy alcohol. If a sale takes place, the premises will be prosecuted.
phylococci. However, of concern was the fact that 29% of sandwiches tested were stored or displayed at temperatures higher than 5˚C. ALDI is holding off on plans to build a €100m distribution centre, attributing the postponement to difficulties in the planning process. As a result, the regional distribution centre will not open until 2013, when it is expected to create 140 jobs. LIDL wins four Blas na hÉireann National Irish Food Awards for its own brand products supplied by Irish producers. EUROSPAR Watch House Cross officially opened its doors for business, with news that 50 new jobs are likely to be created over the next two years.
TALLANSTOWN is the winner of the SuperValu Tidy Towns competition 2010. BULMERS Ltd announces the sponsorship of Ireland’s largest free summer festival in 2011, the Tall Ships Races 2011, which will take place in Waterford next summer from June 30 to July 3. IN the latest Joint National Readership Survey, Associated Newspapers are the only newspaper group to show total growth against the last reporting period, increasing market share in circulation and readership in both the daily and Sunday markets. JAMESON Irish Whiskey is awarded the prestigious Market Watch Spirit Brand of the Year in the United States.
A NEW report from the Comptroller and Auditor General (C&AG) reveals that tobacco smugglers are using tax registration details to throw customs officials off-track and suggests revenue should “explore other methodologies for estimating evasion”.
THE 20 staff members who work at Newscentre, Donaghmede Shopping Centre in Dublin, are jointly named Employee of the Year at the NFRN Awards Ceremony in London.
THE European Parliament calls for a new law to protect farmers from dominant supermarket groups, creating a better functioning food supply chain.
A NEW report from Kantar Worldpanel in Ireland, for the 12 weeks ending on October 3, 2010, shows solid market growth and an improved situation for retailers, the first of its kind since February 2009, while a National Consumer Agency (NCA) survey highlights a renewed sense of optimism amongst Irish consumers.
APPLEGREEN wins the Insight NACS 2010 International Convenience Retailer of the Year Award for format innovation and CSR initiatives at its flagship Mount Merrion site in Dublin. WINE sales are experiencing a recovery in 2010, after two years of decline, according to figures released by the Irish Wine Association, which show that sales have increased by 3.8% since the start of the year. A STUDY published by the Food Safety Authority of Ireland (FSAI) to assess the microbiological safety of pre-packaged sandwiches shows that 99% were satisfactory when tested for the foodborne bacteria Listeria monocytogenes and coagulase positive sta-
CENTRA makes its soap debut, with a new Centra outlet situated on the main street of the popular TG4 soap, Ros na Rún. Ros Na Rún actresses Linda Breathnach and Lisa Ni Laoire are pictured outside the new Centra shop on the set of the popular show.
SUPERQUINN launch one of their biggest ever in-store promotions, the ‘Superquinn Golden Ticket’, as part of their 50th birthday celebrations, with a €50,000 prize fund. NEWS International newspaper titles The Irish Sun and The Irish News of the World are the new sponsors of the Premier League coverage on RTÉ. The deal covers the entire Premier League season and includes sponsorship of coverage on RTÉ Television, RTÉ Radio and RTÉ Online.
A NEW report from the Drinks Industry Group of Ireland (DIGI) suggests the off-licence sector is driving growth in the drinks sector. The report, published by DCU economist Anthony Foley, found the off-licence sector had a 34.8% of market value in 2009, compared to 27.5% in 2000. In 2009, off-licences had about 55% of alcohol volume sales and employed 46,000 full time staff across off-licences and distribution businesses. TESCO opens a new supermarket in Naas, Co. Kildare, creating 266 new jobs in the locality.
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SOME small shops across Ireland are starting to sell illegal tobacco in an attempt to remedy their plummeting sales, according to a report from Retailers Against Smuggling.
Gaelic kits to Under-18s teams across the country. ONE4ALL launch a new iPhone App, which allows users to locate retailers that accept One4all gift vouchers and cards on a map while out and about. It is the first app to locate all Post Offices nationwide as well as PostPoint outlets and Topaz service stations.
GALA unveil a new own brand range, consisting of 200 lines, which is expected to generate an estimated €15m of sales for Gala in 2011.
TARA Buckley, Director General of RGDATA (pictured), is one of the speakers at an EU conference, ‘Towards A Fairer Retail Market’, which seeks to improve equality and efficiency of the retail sector PETER Foley resigns from his position as Commercial Director of ADM Londis plc. REPAK, the industry funded used packaging recycling scheme, has announced that due to rigid cost control measures, there will no increase in the 2011 fee membership. BWG Foods launches an exclusive Irish fresh meat range, Glenmór, investing €1m over three years in the roll-out through its 800-strong store network. THE Barry Group embarks on a massive expansion plan, including a €3.5m, 55,000 square feet expansion of its warehouse facilities, and four new BuyLo Superstores opening in Killarney, Waterford, Shannon and Dublin. JOHN Player’s parent company, Imperial Tobacco signs a co-operation agreement with the Member States of the European Union, including Ireland, and the European Commission to jointly combat smuggling and illegal selling of tobacco.
Year in Review
ICELAND are set to open more than 40 new stores across Ireland in the next four years. The AIM Group, one of Ireland’s largest independent wholesalers and the holder of the master franchise of Iceland supermarkets in Ireland, announced the new Iceland stores recently, along with the opening of 15 Home Savers stores, a new discount chain of homeware stores, and 50 €2 Stores. The total level of capital investment will be over €25m and will create more than 2175 new jobs. Pictured the opening of the Iceland store in Dublin’s Ilac Centre, are Tom Keogh, Chief Executive Officer of the AIM Group (right) and Nigel Broadhurst, Iceland’s UK Buying Director.
RETAIL Ireland calls for a 20% cut in commercial rates in 2011. TOPAZ is crowned Irish Retail Company of the Year and Best Employer at the Retail Excellence Ireland Awards. ISME launch a new world-class online certified training programme for retailers and their staff, in collaboration with Total Training. This programme provides retailers throughout the country with the opportunity to improve their retail skills and gain certification, without taking time away from work. SUPERQUINN open a new 20,000 square feet supermarket in Heuston South Quarter, Dublin 8, with the creation of almost 60 jobs. EUROSPAR launches a nationwide consumer promotion in conjunction with Subaru Ireland, offering new and existing SuperEasy loyalty card holders across the country the chance to win a brand new Subaru Justy worth €12,000. MACE launch their Kits4Kids giveaway, which sees the retailer giving away about 150 full team soccer &
DECEMBER IRELAND’S toughest budget in years is revealed. BUYLO opens its latest store in Waterford. HEINEKEN Ireland and Molson Coors Brewing Company agree to extend their working relationship on Coors Light in the Irish market until December 2014. LENDING to small firms by the country’s two main banks is improving, according to the second quarterly report from the Credit Review Office. ALMOST a quarter of butchers display a use-by date that has no basis and is unrealistically long, according to a Food Safety Authority of Ireland survey. ANDREW Street, previously Chief Operating Officer at Dunnes stores, is to become Chief Executive of Superquinn, with former CEO, Simon Burke becoming non-executive Chairman of Superquinn. JAMESON further strengthens its position as the world’s leading Irish whiskey, with the announcement of three million case sales globally. MUSGRAVE announce the investment of €1m in their MarketPlace cash and carry outlet in Galway. This latest investment is part of an extensive investment programme of over €10m in the Musgrave MarketPlace brand, which has seen the transformation of a number of Musgrave Cash and Carry outlets around the country, including Dublin and Cork, with a €1m investment planned for Musgrave MarketPlace Limerick in 2011. 23
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Off Licence of the Year
SuperValu Midleton Wins Top Award SuperValu Midleton, Co. Cork, has been named the Edward Dillons/SuperValu Off Licence of the year 2010/2011.
Dillon recently announced SuperValu Midleton as the 18th winner of the SuperValu Off Licence of the Year Award 2010 / 2011. Runners up in this year’s awards included SuperValu Balbriggan, Co. Dublin; SuperValu St Aidan’s, Wexford Town; and SuperValu Boyle, Co. Roscommon. Each of the 20 finalist stores were judged by Carthage Conlon and were marked on a range of criteria, including overall appearance, innovation and customer service. The 20 finalists in this year’s competition were each rewarded with an invitation to attend the Bacardi Academie in Sitges, just outside Barcelona, in 2011. During the trip, the finalists will experience live guided tours by brand ambassadors for
Pictured are (l-r): Andy O’Hara from Edward Dillon and Ciaran Lewis, with Didier Segui and Tommy Grimes from SuperValu Midleton in Co. Cork, winners of the Edward Dillon SuperValu Off Licence of the Year Award, and comedian Alan Shortt and Brendan Macken from Musgrave Retail Partners Ireland.
Pictured are Andy O’Hara, Edward Dillon, and Ciaran Lewis, with Shane Kelly and Mark O’Shea from SuperValu Boyle, Co. Roscommon, runners up in the Edward Dillon SuperValu Off Licence of the Year Award. Also pictured are comedian Alan Shortt and Brendan Macken from Musgrave Retail Partners Ireland.
Andy O’Hara from Edward Dillon and Ciaran Lewis are pictured with Padraig Doran and Dave Nolan from SuperValu St Aidan’s Wexford Town, runners up in the Edward Dillon SuperValu Off Licence of the Year Award, with comedian Alan Shortt and Brendan Macken from Musgrave Retail Partners Ireland.
Bacardi. The Bacardi Academy will also offer visitors the experience of an educational session based on the creation process of Bacardi’s superior rum. The winner and runners up of the SuperValu Off Licence of the Year Award won a chance to visit the wine region of Australia, where they will have the opportunity to visit the vineyards of Wolf Blass, Rosemount and Penfolds. During this trip, guests will experience firsthand innovative wine making processes,
meet with the winemakers, visit the vineyards and sample the latest vintages. Speaking of the association, Andy O’Hara, Commercial Director of Edward Dillon said “We would like to extend our congratulations to SuperValu Midleton for winning this year’s coveted prize of the SuperValu Off Licence of the Year Award. We would also like to say well done to the runners up and each of the finalists for taking part this year.”
Mary Quinlan, Brian Carrick and Luke Moriarty from SuperValu Balbriggan in Dublin, runners up in the Edward Dillon Off Licence of the Year Award, are pictured with Andy O’Hara, Edward Dillon; Ciaran Lewis, comedian Alan Shortt and Brendan Macken from Musgrave Retail Partners Ireland.
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Shaping the Market in 2011 What are the trends likely to shape the market in 2011?
has predicted the worldwide consumer packaged goods (CPG) trends set to make an impact in 2011. “These annual predictions represent continuations of current big-picture trends, rather than major changes in the marketplace and what companies are doing,” notes Lynn Dornblaser, Director of Innovation and Insight at Mintel. “Understanding the major trend areas and how they change from year to year is essential for companies to be successful when developing and launching new products.” Quiet Reduction: Sodium, sugar and high fructose corn syrup (HFCS) are three well known ingredients that appear to be experiencing covert reductions in product formulations. While sodium reduction has long been the focus of “quiet reduction,” sugar and HFCS are jumping on board. As the media continue to demonise HFCS, what may start as covert reduction is likely to end up as a key labelling issue. Redefining Natural: Get ready for a “natural shakedown”. While all types of natural claims have grown in importance in all regions, and across all product categories, the term “natural” is still ill-defined. Terms that are vague or not well understood will come under fire and we are due to see an intervention of regulatory bodies. Also, expect to see a new focus on accentuating the positives of what is in a product, rather than emphasising what is not in it. Professionalisation of the Amateur: Mainstream brands are getting into a more serious “professional” arena, by bringing into the home what used to require a specialist service. This trend arguably has its origins in personal care markets, with “salon-style” hair treatments for home use, but continues
to expand to include household (“professional strength” cleaning products) and food (chef-endorsed, restaurant-style meals). Sustainability Stays Focused on the Basics: Sustainability is not slipping down the priority list, but instead of seeing new developments, expect to see a continuation of what we have seen, with a few twists. There will be a greater focus on reduced packaging that promotes environmental responsibility, in combination with uniqueness, such as box-less cereal bars or more cereals without the inner bag. Blurring Categories: Consumers don’t necessarily view products as being in one category or another, rather they look for solutions that meet their needs, and that may be something that straddles multiple categories. Beyond hybrid forms, we also see a blurring of how consumers use products – with beverages consumed as snacks, snacks as meals, and personal care and home care products that do more than one thing. New Retro: Over the last year, we have seen more big brands that revitalise old products and old ad campaigns, tapping into the escalating trend of nostalgia. Companies are returning to a time when life seemed somehow easier, whether that’s the 1980s for consumers in their 20s, or the 1970s or 1960s for older consumers. Personal Hygiene Comes Out of the Closet: For personal care products, discretion is out, and honesty is in. Look for more open discussion of formerly taboo subjects, leading to greater and more unique product development.
Less is More Redux: ‘Less is more’ thinking is being linked increasingly to convenience and economical solutions, with the environment taking a secondary role. This trend can possibly signal a revival of previously “tired” categories, such as dehydrated soup. The trend is towards products that help consumers create meals quickly, easily and with better results. Econo-Chic: Luxury is making a comeback, but in a more limited way. Occasional splurges by consumers provide opportunity for CPG products positioned as “small treats”. The real winners will be simple products, with simple, “elevated” benefits. Instant Results: 2011’s consumers want products that provide a benefit, instantly. While currently seen mainly in personal care products, this can also expand to food and drink products. Simplicity for Older Consumers: In Europe and North America, over one third of the population is aged 45+. Older consumers continue to look for products tailored to their needs and will seek out products which focus more on simple, realistic results rather than hype or lofty promises. More Cradle-to-Grave Brand Initiatives: Products will stretch their brand values and their target market up and down the age spectrum, with expansion of positioning, variety, and package formats across regions and categories. But brand owners beware: this approach doesn’t always work. 25
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Meenan’s News Rack
Make Your Newsagency Work For You If you really want to make money from your newsagency, get focused on children, teenagers and men, writes Karen Meenan.
face it: retail sales are down and most categories in our stores have been very badly hit by the economic downturn. There is still one area in your store worth investing time and knowledge, the magazine stand, and if you really want to make money from this category, get focused on children, teenagers and men. Women’s weekly titles have been in decline over the last two years, hardly surprising because women are the main managers of the household budget and the weekly treat of Now, Woman, That’s Life or Bella has been knocked on the head as a luxury no longer within the family budget. Sales of these magazines in Ireland have declined by 18%, so the reaction of the publishers has been to reduce the price to keep the title in circulation and still keep the revenue from advertising intact. If you have a close look at your magazine stand, you will see value like never before – Full House has a flash price of 50p and many other titles are flashed at 67p, 68p and
69p…. these translate to a price of about a euro at the till point and in terms of net profit (providing your systems are correct and you are not losing money on this category), you are working very hard managing titles which can only net you about 25c per issue! So have another look at your magazine stand and if your one, two or three bays of shelving are dominated by cheap women’s weekly titles retailing at around a euro, this is not much better than selling penny sweets – lots of work with very little return.
Who Is Still Buying Magazines? The first thing to do when The hugely popular Bliss title: a huge you are evaluating your seller with teenage girls. newsagency department is to follow the money. So who is Reorganise Your still buying magazine titles and Available Space which of these customers are not I’m not suggesting that you reduce price sensitive? Men, teenagers the range of women’s weekly titles, and children are not in the same but simply reorganise your available recession as women. Women are space in favour of titles that yield chasing value like never before a much higher net profit at the till and will put down a magazine title point – so best selling shelves should flashed 69p in favour of a title which be in favour of any titles with a price is 2c cheaper. point of €4-5. Sales of comics and Men are not doing this – they are teenage interest titles are up versus still buying the titles they like and this time last year. Comics have held many of these are not price sensitive. a very strong price point – most are With more men unemployed than retailing around €3-4, so the net before, titles about leisure pursuits profit per issue is one euro at the till are becoming popular, ‘Triathlon 220’, point, again four times greater than a ‘Men’s Running’, ‘Men’s Health’ and women’s weekly title. ‘Men’s Fitness’ titles are all performTeenage titles are still performing ing very well. More importantly for very well too. Top selling titles like retailers, these titles are retailing Sugar, Bliss, J-14 and Mizz have all around €5 so it makes more sense to been helped by very attractive coverstock up on men’s titles and reduce mounts and the best selling Irish the space on your stand for cheaper title, Kiss is always a very strong women’s weekly titles. You only need performer, particularly if your retail to sell one men’s magazine to make store is near a secondary school. the same net profit as four or five Hannah Montana and High School women’s weekly titles. Musical, while on the downward
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curve, are still important titles in the pre-teen girl sector. Teenage boy interests are well worth stocking up – music, film and, in particular, gaming are selling well and have a high cover price. Gaming titles have price points of €6-9 so 25% sale or return in this category is very attractive indeed. It is no surprise that new games like Call of Duty: Black Ops have teenagers and young males queuing at midnight for first releases. These games retail for around €50, so a magazine offering cheats and lots of background information for less than €10 seems like a bargain in comparison. Music titles sell well in the summer and film titles sell well in the winter – from now until Oscar time is peak season for film titles, so make sure to stock up on Empire, Total Film and Click. The good news is that these all retail for around a fiver. The only dedicated video game magazine for kids, Megaton is a unique title in an overcrowded pre-teen market. The 68-page title includes the latest game reviews, fun features, officially licensed Cartoon Network comic strips, competitions and comes with free gifts for children to collect.
The Comic Conundrum Comics are largely misunderstood in retail outlets and often loathed by the
person who packs out the magazines. Take time packing out comics and teenage titles and make sure to segregate them into seven different and distinct sub-categories and you will reap rewards at the till. 1) 2) 3) 4) 5) 6) 7)
Pre-School: little boys and little girls aged 0-4 Primary Girls: small girls aged 5-9 Primary Boys: small boys aged 5-9 Pre-teen girls: aged 10-12 Pre-teen boys: aged 10-12 Teenage girls: aged 13 plus Teenage boys: aged 13 plus
If you have three bays of shelving, divide your magazines into three separate categories and dedicate one full drop of an entire metre bay to boys and men. The middle bay should have all best selling categories TV (RTE Guide, TV Now), Soaps (All About Soap, Inside Soap, Soaplife), Mature (Ireland’s Own, People’s Choice, Ireland’s Eye) expensive celebrity (Hello, OK, RSVP and VIP) and
Fun to Learn Friends and Fun to Learn Favourites: two of the best-selling titles in the pre-school sub-category.
Meenan’s News Rack
underneath these, put the pre-school sub category as there is lots of cross purchase between these titles and pre-school. The other bay is for women. Full face all expensive titles and if there is a bumper pack or a cover-mount, bring this title to the front – all Christmas, home and food titles are very good sellers now and have attractive price points of €3-5. If you have to overlap titles, do this with the cheaper weekly titles, which do not yield as much net profit as the monthly titles. On the top shelf, place leisure and niche titles – bridal, pregnancy, slimming, gardening – but not forever – just until December 26, when you rotate your titles around again. Food titles will sell from now until Christmas but it will be hard to give these away in January – change your layout from St Stephen’s Day to reflect your customers’ needs and offer lots of weight watching, slimming, hair, gardening and health and beauty titles for the New Year.
New Titles There have been very few new title launches in 2010 – a sign of the times – but significantly, the new launches have mainly been for children, preschool in particular. Fun to Learn Friends, Fun to Learn Peppa Pig and Fun to Learn Favourites are the bestselling titles in the preschool sub-category. As the logo suggests, the emphasis is on learning through fun and the magazines encourage pre-school children to participate in early learning activities as they work with parents, grandparents or on their own. There are two new launches to this range – Fun to Learn Ben & Holly’s Little Kingdom and range extensions FTL Bag-O-Fun and FTL Peppa Bag-O-Fun. Disney is always popular and is often the grandparent’s choice – so 27
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Meenan’s News Rack
ing very well and had a big uplift with the recent Toy Story 3 film. Disney Presents is a compilation title, which ties in with film launches – ‘Tron: Legacy’ and ‘Tangled’ being two such films to be released very shortly. ZingZillas and Kerwhizz were two other pre-school titles launched during the summer months. These are magazine launches based on the success of Cbeebies TV shows. ZingZillas Tron Legacy, which ties in with the Disney is a music show blockbuster film of the same name, is set to really on Cbeebies which capture consumers’ attention. inspires children to make their own music – the The only dedicated video game magazine for kids, to encourage extra cross purchase, Megaton includes the latest game reviews, fun cover-mounts are usually locate mature titles like Ireland’s musical instruments which features, officially licensed Cartoon Network comic Own and People’s Friend just above strips and competitions. are designed to be fun and these. Disney Animals is a new title The BBC brand is very important in educational. Kerwhizz is about quiz launched in July for 6-9 year old girls this sector – in the pre-school market, activities and has reward stickers in and features all the best loved Disney these titles are linked to the education the magazine; again this is based on a animal characters. Disney Make It system and parents and grandparents Cbeebies TV Show. was launched last year and is performrespond very well to titles like BBC Charlie & Lola, as children don’t even realise that they are learning while they work through the pages of the magazine. Some of the best selling titles in the ‘Primary Girls’ sub-sector are Animal Friends, Fairy Princess (which has 56 free gifts!) and Sparkle World. Sparkle World has just entered the digital world with the launch of www. mysparkleworld.com and this is proving a real hit with its target audience. Another launch just about to take off is Moshi Monsters. If you have never heard of these monsters, just ask any girl or boy aged 5-12 and they will tell out about www.moshimonsters.com, which has been Disney has a wealth of titles available, including Disney Princess and Disney Animals. a worldwide sensation. These 28
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Moshi Monsters is a worldwide sensation: fun, educational and addictive.
monsters are fun, educational and addictive…. You have been warned!
Big Sellers X Factor is huge amongst pre-teens and teenage girls, so any title like Star Girl or J-14, Kiss, Bliss or Sugar which has a picture of Cheryl Cole, Cher or First Direction on the front cover is going to be a hit with girls aged 8-13. To maximise sales of these titles, make a section just for this age group adjacent to ‘Primary Girls’ and very close to celebrity weeklies and young fashion titles like Company, More and Look.
For pre-teen boys, some of the best selling titles are Doctor Who Adventures and Match of the Day – both of these official magazines get the exclusive interviews and insider content that is important to their customers. Top of the Pops is still popular with boys and girls and while this brand has been around forever, it still sells more copies than GQ. ScoobyDoo and Marvel are brands that have been around since we were children but are still as popular today, supported with Marvel collector editions and Warner Marketing. Harry Potter and the Deathly Hallows is the most anticipated movie for teenagers this year so don’t miss the opportunity to sell stickers and other collectables based on the Harry
Meenan’s News Rack
Potter theme. Harry Potter is loved by all teens so quite uniquely has appeal to both boys and girls on your magazine shelf (mostly girls though!). The ‘Primary Boys’ sub-category is home to many well loved titles – Dandy and Beano are just as popular today as they were 40 years ago, only this time they are joined by Simpsons, Scooby-Doo, Spiderman and many other Marvel characters. Smaller boys love titles like Postman Pat, Fireman Sam, Tractor Tom, Roary the Racing Car, Bob the Builder, Ben 10 – if you are unsure of whether the magazines appeal to boys are girls, just look at the title – most boys titles feature a short boy’s name for easy recognition on the magazine stand. So have another close inspection of your magazine stand and if you see your comics just dumped in the stand – don’t think about cancelling these titles – just re-organise the space available and start to make some real profit. Before and after photographs really help you to focus on this category – so before you do anything to improve the profitability in your newsagency, take a photograph and email it to yourself so you can have a really good look at what your customer sees every day. If you don’t like what you see or if you think that you need help with the range, planogram, selection and display of titles in your store – please contact Karen Meenan, firstname.lastname@example.org or ring 086 6027711.
The Daily Profit – Helping You to Manage Your Newsagency THE Daily Profit is a business that takes the pain and frustration out of managing the newsagency department, a third party which acts as a buffer between your two main suppliers, Newspread and EM News Distribution. They manage your standing orders to make sure that you don’t run out of best-selling titles and that you don’t get box-outs of shelf-warming titles that you know won’t sell in your store. Contact: Karen Meenan, The Daily Profit, 3 Warrenhouse Road, Baldoyle, Dublin 13. Tel: 086 6027711. Email: email@example.com.
Sparkle World has just entered the digital world with the launch of www.mysparkleworld.com and this is proving a real hit with its target audience.
The Daily Profit W h e re Re t a i l e rs Make More Profit 29
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Early Risers! The breakfast market remains a critical one for retailers, with many Irish consumers trading up to premium products for the most important meal of the day.
current economic climate is providing a number of opportunities for manufacturers of breakfast products, as many consumers have begun to trade up in the breakfast category, with the home breakfast market reaping the rewards. Instead of splashing out on foodto-go, many consumers are treating themselves to premium breakfast products, from coffee and tea to added-value breads, cereals and breakfast meats, to prepare and eat in the comfort of their own home. Convenience and health are key trends, with consumers wanting premium products and all the taste, without compromising on health, with ingredients such as wholegrain, vitamins, minerals and fibre proving popular choices. Oat-based products, which combine the goodness of wholegrain oats with great taste, are particularly popular, while there is also a move towards single-portion packs. Cereals make up a sizable proportion of Irish breakfasts. The value of the breakfast cereals market in Ireland increased from €109.5m in 2007 to €114.3m in 2009, according to
Datamonitor, with an average growth but it is an ideal store cupboard staple rate of 2% year on year. this Christmas. Irish households will The potential for further growth is be stocking up on Boyne Valley Honey high, however, if manufacturers and to glaze their hams and to create the retailers highlight “the most imporperfect honey glazed roast vegetables. tant meal of the day” to consumers. A recent study into breakfast behaviour Bonne Maman by Kraft Foods Ireland found that Bonne Maman, the premium French 32% of people in Ireland are failing jam from Boyne Valley Group, has to eat the most important meal of the full distribution throughout Ireland day, with a staggering 48% of peoand has seen a very impressive ple in their 20s skipping breakfast 25% growth, year-to-date. For many and those who do eat it admitting to years, Bonne Maman has been the spending just nine minutes preparing uncontested leader in its market, and eating breakfast each day. with a continuing strategy to sustain One of Ireland’s leading consultant growing consumer demand. dieticians, Sarah Keogh, commented, Bonne Maman, with its unique “Nutritionists recognise breakfast as design and ‘home made’ image, really one of the most important meals of the day and people who skip breakfast find it much harder to get their recommended daily amounts of iron and other vitamins. People who eat breakfast have better concentration levels and find it easier to maintain a healthy weight. Any convenient, portion controlled and specially designed breakfast alternative that makes it easier for more Bonne Maman, the premium French jam, has full of us to eat a balanced distribution throughout Ireland and has seen a breakfast more often can very impressive 25% growth year to date. only be a good thing.” stands out in-store and appears very attractive to the consumer. Irish Boyne Valley Honey consumers are trading into preBoyne Valley Honey has been mium offerings in jam with available to Irish an emphasis on quality and consumers for Bonne Maman jams boast a almost 50 years minimum of 50% whole fruit and is the most per 100g of jam product. popular brand of Bonne Maman is availhoney in Ireland. able in Strawberry, Apricot, Boyne Valley Blackcurrant, Blackberry, Honey is 100% pure Raspberry, Peach, Damson and natural. It is Plum, Berries and Cherries, available in a range Wild Blueberry, Orange of formats from Marmalade and Mandarin the 250g Bizzy Bee Marmalade flavours. Bonne kids’ squeezy right Maman Jams are a 100% up to the 907g Boyne Valley Honey has been natural product and are jar. Boyne Valley available to Irish consumers for free from preservatives, Honey is not only almost 50 years and is the most a delicious spread, popular brand of honey in Ireland. flavouring and colour-
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to the oats category in line with consumers’ increasing interest in porridge as a healthy breakfast cereal choice. Free from artificial Sqeez colours and additives and Sqeez is the top selling ambient made from 100 per cent fruit juice brand in Ireland, Irish wholegrain oats, the outselling the nearest branded intrinsic health benefits of competitor by nearly 3:1 (Source: Flahavan’s Progress Oats, ACNielsen, Scantrack October Organic Oats, and the 2010). The brand has been quick and easy to prepare supported by strong above the Quick Oats range in a line activity throughout 2010 sachet, drum and portable with the ‘Love Every Drop’ TV The continued success of the Avonmore milk brand is pots make Flahavan’s porcampaign. attributed to a commitment to innovation and investment in ridge the ideal breakfast In response to highly visible national marketing campaigns. or snack, anytime or anychanging market where, at home or in the product and package innovation conditions and office. More recently, Flahavan’s won such as the Avonmore Easypour increasing commodtwo gold stars in the ‘Luxury breakJug and Avonmore Lactose Free ity prices, Sqeez fast cereal, to be cooked’ category, one Milk. By recognising the consumer will be reinforcing star for Flahavan’s Organic Porridge trend towards health and wellits position as brand Oats and the second for Flahavan’s ness, Avonmore has developed a leader with the new Organic Jumbo Oats at the Great milk portfolio that offers low fat, ‘Worth Every Cent’ Taste Food Awards 2010. The distincfortified, skimmed and specialty message on 1 Litre tive Flahavan’s taste, quality and options. Avonmore believes that it Orange and Apple is the valuepacks. Sqeez will added sector proudly continue to that is drivsupport ‘Love Irish ing growth Food’- an initiative within milk led by Irish manu– growth that facturing brands to is being led by promote Irish food Avonmore’s and drink brands Super Milk in the Republic of and Slimline Ireland. For more brands. information, see The www.facebook.com/ success of SqeezPureOrange. Sqeez will be fresh milk reinforcing its is mirrored Avonmore position as brand Free from artificial colours and additives and made by strong Milk leader with the new from 100% Irish wholegrain oats, the intrinsic health ‘Worth Every Cent’ performance Avonmore Milk, benefits of Flahavan’s Progress Oats, Organic Oats and Quick Oats message on 1 Litre across all of from Glanbia make Flahavan’s porridge the ideal breakfast or snack. packs. Avonmore Consumer Foods, Milk’s products, particularly Super innovative format varieties combine continues to be Milk – brand leader in the fortified to make Flahavan’s Oats the No.1 Ireland’s favourite milk at breakfast milk sector with 93% volume share brand that consumers can trust. time, with a 29% value share (Source: (Source: ACNielsen Total Scantrack Flahavan’s products are 100% Irish ACNielsen Total Scantrack MAT Oct MAT Oct 31/10). and the brand is proud to support 31/10). The continued success of the Love Irish Food - an initiative led by Avonmore milk brand is attributed Irish manufacturing brands seeking to to a commitment to innovation and Flahavan’s promote Irish food and drink brands investment in highly visible national Flahavan’s is Ireland’s favourite in Ireland. See www.flahavans.com for marketing campaigns, led by the porridge and has a loyal Irish more information. flagship sponsorship of Weather-Line customer base, with over one million across all three terrestrial channels. servings consumed nationwide each Avonmore has a proven track week. As the hot oats cereal category Kellogg record in driving value and growth leader with over 65% market share, When it comes to breakfast, there within the milk category through Flahavan’s has delivered more growth is no doubt that ready-to-eat cereal ing. Bonne Maman’s success will continue thoughout 2010 with a heavyweight national promotional campaign.
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gluten free cereals, porridge, muesli, cornflakes and newly launched buckwheat flakes, the brand offers consumers a wide range of wholesome cereals. Kelkin cereals will continue to be supported with in-store promotions, press advertising and Kelkin will be sponsoring ‘How healthy are you?’, a
intensity and then dark roast them to achieve a deep, full-bodied coffee with the sumptuous aroma of rich wood and toasted molasses. Nescafé Black Gold is the perfect choice for those who enjoy a strong cup of coffee.
Kellogg’s Corn Flakes: a clear winner with Irish consumers.
is the number one choice for Irish consumers. Here in Ireland, we eat more breakfast cereal than any other country in the world; at 8.2kg per head annually, that’s 2kg more than the UK, the world’s next biggest cereal eaters. Kellogg are undoubtedly the market leader in the Irish cereals sector, with a host of iconic brands, including Kellogg’s Corn Flakes, Kellogg’s Rice Krispies and Special K.
To ensure Irish consumers only get the very best, Bewley’s Tea Blender Paul O’Toole travels the world to source only the finest tea leaves.
new health & lifestyle series on TV3 this Autumn. Check out Kelkin on facebook or at kelkin.ie for further information.
With world class coffee and tea expertise since 1840, Bewley’s continues to serve and delight Irish consumers. Bewley’s has a comprehensive range of fresh ground coffee products to suit every taste. The Bewley’s Explore range allows Kelkin Ltd coffee lovers to Irish healthfood company Kelkin sample individual Ltd has been providing wholesome, origin coffees natural and healthy foods since from Guatemala, 1976. Kelkin’s position in the Nicaragua, Colombia, wholesome cereal category has Kenya and Indonesia. been growing from strength to The Café Blend range strength over the years, helped provides a choice of in 2009 by the launch of their well rounded coffees very successful Granola Cereals, New Nescafé Black Gold has joined the beacon of varying strengths, produced at their Dublin site. brand Gold Blend, and is the perfect choice for those who and is the ideal Together with Kelkin no added enjoy a strong cup of coffee. product for those sugar mueslis and its range of consumers new to roast and ground Nescafé coffee. Nescafé Black To ensure Irish consumers only Gold is the latest get the very best, Bewley’s Master addition to the Roaster and Tea Blender Paul O’Toole Nescafé Gold travels the world to source only the Blend family. finest coffee beans and tea leaves. The Nescafé Black coffee beans are then carefully roastGold is a darker ed back in Dublin to entice the perfect roast, making flavour from them before blending, it the stronger grinding and packaging to retain the coffee in the coffee’s freshness. Bewley’s teas are range. They meticulously blended to meet Irish blend mainly Kelkin’s position in the wholesome cereal category has been consumer tastes. Arabicas to give growing from strength to strength over the years. 32
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‘IT PAYS TO DISPLAY’
Remember, The Irish Daily Star Group puts the most cash in your tills han any other newspaper group in the national tabloid sector, generating over ¤10 million profit annually to the retail sector in Ireland. IT ‘PAYS TO DISPLAY’ THE IRISH DAILY STAR GROUP TITLES IN THE MOST PROMINENT POSITION WITHIN YOUR STORE.
R E TA I L E RS OF BATTERIES – National Waste Prevention Programme
Are You Compliant with the Battery Regulations?
A Seasonal Message to Retailers for Battery Recycling. The volume of batteries sold and consumed around Christmas is significant. Therefore, retailers must play their part in making sure waste batteries are collected and managed properly. This will help greatly towards Ireland’s achievement of challenging battery collection and recycling targets.
Do you supply: o Portable batteries (AA, AAA, D cell, C cell, 9V and/or button cells for household use); o Toys (with batteries included); o Electrical goods such as: televisions, torches, power tools, novelty gifts or other small household electrical items that contain batteries; o Computer/ IT equipment. If so, you have obligations under the SC_SS_packshot.pdf Battery Regulations . 1 10/12/2010 12:31
The Battery Regulations came into force on 26 September 2008. Enforcement is carried out by the EPA and local authorities. There are three types of battery which are covered by these regulations: industrial, portable and automotive.
What are my main obligations as a retailer? • Register your premises with the appropriate local authority or ask your symbol/trade group about free registration through one of the approved compliance schemes: (WEEE Ireland, www.weeeireland.ie or ERP Ireland, www.erp-recycling.ie ). • Source all battery stock only from registered producers (supplier) . Check if your suppliers are registered producers at www.weeeregister.ie. • Display the correct statutory notices to inform your customers of free take back of waste batteries for recycling. Notices can be downloaded from www.batteries-enforcement.ie • Provide free take-back of waste batteries (only similar to type sold).
EVOLUTION OF STYLE SILK CUT REDEFINED Silk Cut SuperSlims has upgraded its style credentials with a completely new pack and cigarette tipping design. The new designs redefine Silk Cut, utilising an intricate pattern against striking, dual colourblocked backgrounds.
The EPA is rigorously enforcing the Battery Regulations, in conjunction with the local authorities. A programme of unannounced inspections, complaint investigation and surveillance is ongoing. Non-compliance may lead to legal action including prosecution. Further information may be found at www.batteriesenforcement.ie or e-mail batteries@ epa.ie or Lo call 1890 33 55 99.
TARA Experts with over 35 years experience in B2B magazine, yearbook, directory and contract publishing. For all enquires contact Kathleen Belton on 01 241 3095.
As market leader*, Silk Cut is committed to introducing unique, premium smoking experiences for existing Irish adult smokers.
Retail News Retail News Directory LVA Directory & Diary Dublin Port Yearbook Irish PharmaChem Buyers Guide Irish Packaging Yearbook & Directory Food Ireland Yearbook & Directory Look out for the new Silk Cut SuperSlims Menthol and Purple packs in store. * Source: Silk Cut 26.2% SOM (Sept YTD 2010, AC Nielsen)
This advertisement is for tobacco retailers only and should not be made available to the public nor should it be displayed in any area where it is visible to the public.
Note: purchase of new batteries is not necessary to avail of free take-back. • Retailers are obliged to inform customers of free waste battery takeback.
To advertise in any of the above publications please call our sales team on
Tel: 01 2413095 Fax: 01 2413010 Email: firstname.lastname@example.org Web: www.tarapublishingco.com
Off Licence Awards
Rewarding Excellence at Centra Edward Dillon & Co. Ltd have announced the winners of the Centra Off Licence and Wine Store of the Year Awards 2010/2011.
innovative wine making processes, meet with the winemakers, visit the vineyards and sample the latest vintages.
Dillon was delighted to sponsor the recent Centra Off Licence and Wine Store of the Year Awards 2010 / 2011, which took place in The Grand Hotel,
Pictured are Brendan Macken, Category Manager for Musgrave Retail Partners Ireland, comedian Alan Shortt with the winners of the Edward Dillon Centra Off Licence of the Year Award in the Community and City Centre Convenience category from Reidy’s Centra, Foynes, Limerick: Julie and Kevin Reidy, along with Andy O’Hara, Commercial Director of Edward Dillon.
Malahide, Co Dublin. The judging panel saw a strong representation from counties across Ireland in the
Pictured are Marie Coleman, Cormac Dawson and Emma Coleman from Coleman’s Centra Millstreet, winners of the Edward Dillon Centra Wine Store of the Year in the Community and City Centre Convenience category, with Andy O’Hara, Commercial Director of Edward Dillon
Maximising Profit Potential
Pictured are Pat and Marie McClafferty, Bernard Greene and Joesphine Whyte from McClafferty’s Centra Gortahork, winners of the Edward Dillon Centra Off Licence of the Year Award in the Provincial Supermarkets, Community Markets and Stand Alone Off Licence category, with Andy O’Hara, Commercial Director of Edward Dillon.
final line up including Limerick, Cork, Dublin, Donegal, Sligo, Cavan, Galway, Clare and Leitrim. On the night, Reidy’s Centra in Foynes was awarded the Edward Dillon Centra Off Licence of the Year Award, with Coleman’s Centra in Millstreet being awarded the Edward Dillon Centra Wine Store of the Year, both in the Community and City Centre Convenience category. McClafferty’s Centra in Gortahork and Ryan’s Centra in Ennis celebrated their wins in the Provincial Supermarkets, Community Markets and Stand-alone Off Licence Category, with McClafferty’s Centra being awarded the Edward Dillon Centra Off Licence of the Year and Ryan’s Centra receiving the Edward Dillon Wine Store of the Year Award. The winning stores from Foynes, Millstreet, Gortahok and Ennis were rewarded with a trip to Australia, where they will have the opportunity to visit the vineyards of Wolf Blass, Rosemount and Penfolds. During this trip, they will experience firsthand
This year, Edward Dillon brought with their sponsorship substantial experience, given their previous involvement with the Centra Wine Awards and their sponsorship of the SuperValu awards. The main aim of the Edward Dillon Centra Off Licence of the Year Awards is to assist Centra store owners and support them in order to maximise sales and profit potential of their off licence or wine store. Speaking of the association, Andy O’Hara, Commercial Director of Edward Dillon, said, “This is our first year sponsoring the Centra Off Licence and Wine Store of the Year Awards. The standard of entries was extremely high this year and we congratulate each of the category winners on their achievement.”
Pictured are Brendan Macken, Category Manager for Musgrave Retail Partners Ireland, comedian Alan Shortt, Paul and Kay Ryan from Ryan’s Centra Ennis, winner of the Edward Dillon Centra Wine Store of the Year in the Provincial Supermarkets, Community Markets and Stand Alone Off Licence category, and Andy O’Hara, Commercial Director of Edward Dillon. 35
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Urney’s Sweet Disposition Karen Nolan recounts the story of Urney Chocolates, whose Two And Two bar was once a household name throughout the country and one possibly on the way back.
wife Eileen who filled those jam pots. Troubled by the number of young people emigrating from their hometown of Urney, she looked for ways to create work. Using fruit from her garden, she began a jam making enterprise. It was 1918, the end of the Great War, and sugar was scarce. The only way to obtain a commercial quota was to diversify into sweet making. Eileen adapted accordingly and so Urney Chocolates was born. In 1920, disaster struck. A fire in the basement burnt Urney House to the ground. Harry continued in his job as Urney’s Two And Two bar, a crown solicitor, travelfavourite amongst generations of ling to court sessions in Irish chocolate lovers. Donegal on horseback. Meanwhile, a bungalow and From Tyrone to new factory were built on the Tallaght grounds of Urney House and In 1923, Urney Chocolates moved to Eileen was back in business. a disused RAF airfield in Tallaght. Incredibly, two years later, Some of the original staff from Urney, the new purpose-built facincluding 25 female employees, a tory was to suffer the same carpenter and two maintenance fate as the rectory and the men, also relocated. All the surviving entire building was gutted in machinery from the factory at Urney the aftermath of a fire. This was hauled 160 miles to Tallaght and setback threw the Gallaghers new equipment was bought to make into uncertainty. The duty chocolate. The Irish army remained imposed on imported chocoon the site for about six months while lates by the recently formed the factory was established. For Irish Free State caused furseveral months after their departure, ther misgivings. Harry found unexploded bombs were found on the himself out of a job and with site at the rate of one a day. Urney Chocolates now the It was very difficult to get wrong side of the new Irish financial support for the business. border, they decided to move Karen Nolan, author of ‘Sweet Memories, The Gallaghers almost gave up The Story of Urney Chocolates’. to Dublin. in favour of emigration, when the
’60s Ireland, Urney Chocolates was a household name. At that time, it was one of the largest chocolate factories in Europe. Everyone was familiar with the advertising slogan ‘Anytime is Urney time!’. It would spill out from radios all over the country, broadcast by a young Gay Byrne. The Urney Two and Two bar was a favourite. Available in milk and dark chocolate, each of the nine creamfilled squares were embossed with the legendary Urney leprechaun. It was one of many products manufactured at the Tallaght plant. “Urney Chocolates grew out of a jam pot,” was how Harry Gallagher described the ascent of his chocolate factory from its humble beginnings in Co. Tyrone. It was his remarkable
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‘Charms’ for another large North American company, mainly for the European market. In 1950, Harry retired from Urney Chocolates and his son Redmond Gallagher became MD. Harry and Eileen continued to live on the Urney site in Tallaght and did so for the rest of their lives. In 1958, food chemist, Tommy Headon became a business partner and MD of Urney while Redmond stepped up to the position of Chairman. In 1963, Urney sold a 50% share to New York conglomerate, WR Grace & Co. The Grace corporation already had a majority holding in Van Houten, the long established Dutch manufacturer of cocoa and chocolate products. Shortly after the merger, the ‘Anytime is Urney Time’ was the brand’s UK Van Houton factory moved profamous slogan. duction from Chesham to Tallaght. From here, Van Houton products National City Bank offered them a were supplied throughout the British loan. Eileen applied for a start-up Isles. The following year, Grace grant from the Irish government acquired another well known Dublin while Harry applied to the British firm, HB Ice Cream. government for compensation as By now, the Urney Chocolates a ‘distressed loyalist’. Remarkably, factory was using 30,000 gallons of both were granted and although milk and 50,000lbs of sugar daily. To the audacity of the Gallaghers was accommodate expansion and prepare noted in the Dáil, it was generally for entry into the common market, a regarded with humour. total of £500,000 was invested into the modernisation of the Tallaght facSweet Success tory over the course of three years. A Urney Chocolates prospered during new three-unit plant was officially WWII. When the Emergency Laws opened at Tallaght in June 1965 by were passed, the shipping restrictions then Taoiseach, Sean Lemass. The and rationing of foreign currency entire factory now spanned 350,000 affected the business. Britain square feet. banned all imported chocolate and confectionery from outside the Sterling area. As the Irish Free State remained A Change in Fortunes within the area, however, Urney Tommy Headon MD unexpectedly took advantage of the closed market passed away in 1966. This was a huge and began selling chocolate crumb, blow to the factory, now operating at couverture and fondant to English maximum production, and it never confectioners. There was a plentiful quite recovered from its loss. The supply of indigenous sugar and milk directors sold their remaining 50% and, with their pre-war supply of cocoa share to Grace & Co. beans from West Africa now closed off, In 1975, Harry Gallagher passed Urney chartered a ship to bring cocoa away at 95 years old. His wife Eileen beans from South America. passed away a year later at 89 years old. Lowneys, a leading Canadian Unilever, owner of Walls Ice confectionery firm, commissioned Cream, acquired the entire enterUrney to make various chocolate prise from Grace & Co. in 1976. products under licence in Ireland. Concentrating on HB Ices, Unilever The Tallaght factory also produced continued to make confectionery
under the name of HB Chocolates. However, in the face of increased competition, sales dropped considerably and HB Chocolates closed its doors for the last time in 1980 with 300 employees on the payroll.
The Brand Revived Although Urney Chocolates ceased trading 30 years ago, the brand is still alive and well. Leo Cummins has worked in the confectionery business for many years, as did his father, who was a wholesale customer of Urney Chocolates from the early 1940s. Leo bought Irish confectionery companies Wilton and Milroy in 1980 and 1982, respectively. He later went on to acquire other Irish confectionery businesses, including Urney Chocolates. To date, Leo has relaunched Wilton Macaroon Bars, Cleeves Toffees and Hadji Bey’s Turkish Delight to the market and we look forward to seeing the unique Urney Two and Two bar back on our shelves in the not so distant future.
About the Author KAREN Nolan’s book, ‘Sweet Memories, The Story of Urney Chocolates’ is available through Blue Rook Press. With a heartwarming foreword from comedian Brendan Grace the publication traces the growth of Urney Chocolates from its humble beginnings in Co. Tyrone to an industrial pioneer of Irish confectionery. Karen’s interest in Urney Chocolates stems from her family connections with its founders. She is a great granddaughter of founders Eileen and Harry Gallagher. For more information, see http://www. yearningforurney.blogspot.com/
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Jameson Sells 3m Cases Worldwide JAMESON further strengthened its position as the world’s leading Irish whiskey with the announcement of three million case sales globally. Growth in the US, Jameson’s largest export market, contributed to the brand’s milestone success, with an impressive one million cases sold. Despite the recent economic downturn, Jameson’s sales volume has increased by 9%, while value grew by 12%, for year ending June 2010. While US sales grew by 24%, with 49 states in double-digit growth, key markets such as Russia (+8%), South Africa (+7%) and France (+7%) also enjoyed success. “We are delighted with the progress of Jameson globally,” noted Alex Ricard, CEO, Irish Distillers Pernod Ricard (pictured). “Almost 230 years since the Jameson Distillery was founded, this is a huge achievement for the brand, one I am sure John Jameson would have been proud of.”
New South African Brandy Launched MUNSTER Rugby star, Alan Quinlan, was on hand in Galway recently to officially launch Klipdrift, the new South African brandy available exclusively in Ireland from Oranmore-based wine and spirit distributors, J&C Kenny. Vat-matured and blended the time-honoured way, to give a smooth, full-bodied taste of genuine Old Cape Brandy, Kilpdrift is South Africa’s best-selling brandy.
Appointments at William Grant & Sons WILLIAM Grant & Sons has announced a number of new appointments at the company’s new Global Marketing Office, recently established at Park West, Dublin. Deirdre Clarke (photo 1) has been appointed as Brand Manager for Hendrick’s Gin, while Alison Hunter (photo 2) is Marketing Manager for the same brand. Enda O’Sullivan (photo 3) has been named as Global Brand Director for Sailor Jerry Spiced Rum, with Gemma Adams (photo 4) as Brand Manager and Ciara McDevitt (photo 5) as Marketing Manager for the same brand. William Grant & Sons’ six 1 core brands also include Tullamore Dew Irish Whiskey, Glenfiddich, Grant’s, and The Balvenie. 2
Heineken Ireland Extends Coors Light Deal HEINEKEN Ireland and Molson Coors Brewing Company have agreed to extend their working relationship on Coors Light in the Irish market. The new deal forms part of a wider international agreement between Heineken NV and Molson Coors and extends until December 2014. “Heineken Ireland have enjoyed a very strong and positive working relationship with Molson Coors Brewing Company over the past number of years. We look forward to working with them as we continue to develop the Coors Light brand in Ireland,” noted David Forde, Managing Director of Heineken Ireland. Heineken Ireland has managed the Coors Light brand in Ireland since 1995, during which time the brand has continuously out-performed the market and it is now the number four lager brand in Ireland and the number one lager bottle in the on-trade.
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Accentuate the Positive Jean Smullen ends the year with some good news for the wine trade.
column has decided to rail against the constant diet of bad news and will focus only on the positive as we end 2010 with a look at some good news stories from the latter part of the year. First of all, it is vital to point out that market for wine in Ireland has finally returned to growth figures. After two years of falling consumption, -3.9% in 2008 and – 6.8% in 2009, the figures to July 2010 show that the total market for wine grew by 1.2%, with still wine up by 1.5% (Source: Government Clearances).
Growing Sales Recent figures to September 2010 also indicate that within the multiples and symbol group sector, volume sales of wine were up by 12%. It is also interesting to observe how the market trends are reflected in the figures. For the period September 2009 -2010, volume growth on an MAT basis (moving annual total) increased for South African +6%; Australia +13%; Chile +12%; Italy +60% (led by the huge demand for Pinot Grigio and Prosecco); New Zealand +150% (reflecting the huge demand and interest in New Zealand Sauvignon Blanc); Spain +35% and France +9% (Source: Nielsen).
Australia and Chile still continue to dominate the Irish market, with both categories competing very closely for overall volume sales. Between them, Australia and Chile account for over 50% of all wines sales on the Irish wine market. There is no doubt that the last few years have been particularly difficult for wine retailers as they try to deal with the new economic reality. It was therefore heartening to see a wine retailer pick up the top award overall for retailing in Ireland. O’Brien’s Wine Off Licence in Sandymount was voted best overall retailer at the 2010 Retail Excellence Ireland awards. Congratulations to managers, Kevin Ralph and Fintan McCormick, for all their hard work. The Sandymount wine outlet was up against some pretty stiff competition, including Joe Doyle’s Donnybrook Fair, Butler’s Irish Chocolates in Liffey Street, and Superquinn in Knocklyon, as well as a number of other retailers in the clothing, sportswear and pharmaceutical sectors.
Keeping Consumers Interested The independent wine retailers should also take a bow for all their
New Zealand Wine Fair THE 2011 New Zealand Annual Trade Tasting will take place on Monday, January 17, 2011, at the SAS Radisson Hotel, Golden Lane, Dublin 8. Trade & Press are invited to taste a comprehensive rage of New Zealand wines, including new vintages from 2009 and 2010. The trade tasting will run from 12 noon to 6pm, with the consumer tasting following at the same venue from 6.30-8.30pm. Participating wineries for the 2011 annual tasting include: Akarua; Allan Scott Family Winemakers; Ata Rangi; Bibby Wines; Brancott Estate; Cloudy Bay; Craggy Range; Delta Wines; Elephant Hill; Framington Wines; Forrest Wines; Giesen Wines; Greywacke; Hunters Wines NZ; Lawson’s Dry Hills; Mount Beautiful (Teece Family Vineyards); Nautilus Estate; Oyster Bay; Omaka Springs Estate; Saint Claire Estate Wines; Seifried Estate; Spy Valley Wines; Te Kairanga Wines; Tinpot Hut; Tohu Wines; Villa Maria; Waipara Hills; Winegrowers of Ara; Wild Earth; Wither Hills and Yealands. For more information, see www.nzwine.com.
initiatives to keep the customer interested and on-side. This year saw the return to form of the Christmas Wine Fair, with many independent retailers holding their annual pre-Christmas shop window event in November. It was also good to see so many consumers attending these events. The O’Donovan’s Wine Fair in Cork was packed, with over 600 consumers at the Clarion Hotel in Lapp’s Quay. La Touche Wines, a brand new wine shop in Greystones, also held a very successful fair at Greystones Tennis Club. The Corkscrew in Chatham Street had their event in the Westbury Hotel. Gibney’s, the 2010 Off Licence of the Year, had their 13th Annual Fair at the Grand Hotel in Malahide, while Simply Wines flew the flag with great offers for their customers at their new wine warehouse in Ballyogan. Selling wine is all about being proactive and we here at Retail News salute everyone retailing wine in Ireland for all their hard work during what has been a very challenging year.
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Shelf Life THE first ever Rugby World Cup Tour came to Ireland recently, stopping off in Limerick, Cork and Dublin to mark Heineken’s partnership with the world’s most prestigious Rugby Tournament. The Webb Ellis Cup arrived in Ireland directly after the Rugby World Cup Tour launch in New Zealand and gave fans in Ireland the opportunity to get up close and personal with the Cup. The Rugby World Cup kicks off in September 2011 in New Zealand. Pictured with the Webb Ellis Cup are (l-r): David Humphreys; Heineken Ireland Sponsorship Manager, Pat Maher; Donal Lenihan; Heineken Ireland Marketing Director, Walter Drenth; and Ger Gilroy. THE Logic Group and Musgrave Retail Partners Ireland (MRPI) have won the Retail Systems’ ‘Back Office Solution of the Year Award’ for their work and development of the ‘Real Rewards Customer Loyalty Solution’. Retail Systems’ judges assessed how the technology integrated with current operations and looked at the benefits provided to MRPI business by a solution that replaced various paper-based loyalty initiatives, operating in a number of SuperValu stores, with a unified programme. Pictured receiving the award are (l-r): Katie Bower, Senior Solutions Marketing Executive, The Logic Group; Edel Russell, Head of Innovation, Musgrave Retail Partners Ireland; Marc Darling, Business Development Manager, The Logic Group; Jon Worley, Principal Consultant, Customer Loyalty Management, The Logic Group; and John O’Brien, Technical Lead, Real Rewards, Musgrave Retail Partners Ireland. A TRIP to NOMO in Copenhagen, recently voted the best restaurant in the world, and the coveted title of ‘Best Student Chef in Ireland’ are up for grabs for ambitious young chefs in this year’s Knorr Student Chef of the Year competition. Now in its 14th year, the competition aims to discover the most talented and creative chefs coming through the ranks of Ireland’s 12 catering colleges. Pictured at the launch are (l-r): David McCann, Exec. Chef at Dromoland Castle; LIT students Jenny Roberts and Kevin Boyle; and Mark McCarthy, Exec. Chef at Unilever Foodsolutions. TECHNOLOGY company 3M’s slim, compact and highly durable touch screen displays are being incorporated in tobacco vending machines installed in hotels, bars and restaurants world-wide. Azkoyen Industrial SA is integrating 17-inch 3M MicroTouch Display C1700SS enclosure monitors into its advanced Argenta In-Touch 88 Series of products, allowing promotional videos to be played whilst the machines are idle and providing a robust, yet friendly interface for customers. The screen is used not only to select the desired tobacco product, but also for delivering focused campaigns and front-panel advertisements. In addition, technical operators can interact with the graphical interface in order to update product selections, promos and video content. See www.3M.co.uk/touch for more information.
INISH Turk Beg is making its debut on the Irish food scene at Donnybrook Fair in Dublin. The range includes a selection of artisan smoked fish, including mackerel, salmon and tuna. Inish Turk Beg’s fish is either caught or farmed off the pristine and Class A1 waters off the Atlantic West coast of Ireland. It is smoked using a unique combination of Beechwood and island seaweed.
EVERY two years, the international wine trade is invited to discover the wines of the Rhone Valley at Decouvertes en Vallee du Rhone. The sixth such event takes place from March 1-6, 2011. Registration, which is strictly limited to wine professionals, is now available online at www.decouvertes-vins-rhone.com. FOLLOWING an extensive consultation process, the organisers of Natural & Organic Products Europe, taking place next April at London’s Olympia, have announced the launch of The Natural Food Show, the new name for the increasingly important food offering of the event. The Natural Food Show is supported by The Soil Association, the Fairtrade Foundation, Demeter, Organic Farmers & Growers, the Organic Trade Board, Vegan Society, Food Lovers Britain and other leading industry associations. See www.naturalproducts.co.uk for more information. AN enthusiastic crowd gathered from early morning for the family fun day out to mark the official opening of BuyLo in Killarney, ensuring they were first in line to snap up the fantastic deals on offer. Pictured at the event are: Denis Kennedy, Chairman, BuyLo Ireland, with Kerry football stars Colm Cooper and Darren O’Sullivan, and Jim Barry, MD, the Barry Group.
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OTC_RN_210x297_23SEP10_Layout 1 23/09/2010 16:45 Page 1
If they ask for cigarettes you have to ask for ID because if you sell cigarettes to under 18s you could face a fine of up to â‚Ź3,000 and be banned from selling tobacco products LoCall 1890 333100
EVOLUTION OF STYLE SILK CUT REDEFINED
FROM IRELANDâ€™S NO.1 BRAND*
* Silk Cut 26.2% SOM (Sept YTD 2010, AC Nielsen) This advertisement is for tobacco retailers only and should not be made available to the public nor should it be displayed in any area where it is visible to the public.