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www.retailnews.ie|January/February 2012|Contents|3
Contents New Beginnings? 2012 began with the welcome news of a grocery uplift during the festive season 2011, and thankfully, the mild weather meant that we had no snow or ice, keeping consumers from our stores, unlike last January. However, this wouldn’t be the Irish FMCG market without some form of controversy and this time around, it is the results of not one but two Governmentcommissioned studies into the misuse of alcohol, from the National Substance Misuse Strategy Steering Group and the Oireachtas Joint Committee on Health and Children. Both studies have predictably come up with wildly inappropriate, overthe-top reactions that fly in the face of personal freedom in favour of a Nanny State that restricts access to a legal product to all because of the actions of a minority, in a sector where 99% of retailers are already acting responsibly and policed effectively. Our Chief News Reporter, Pavel Barter delves into the issue (Page 4), gauging reaction from the retail trade to yet another threat to its livelihood. Meanwhile, the Government’s decision to increasing VAT and excise on tobacco products is “sheer lunacy”, which is costing jobs, writes Benny Gilsenan, Spokesman, Retailers Against Smuggling (Page 26). In a hard-hitting report into the illegal trade and its affects on legitimate retailers, Gilsenan further argues that failure to tackle the problem of illegal tobacco sales cost the public finances €435m in 2010 and made for a loss to retailers of €575m in the same year. He calls on Finance Minister, Michael Noonan TD to act now before it is too late. Finally, our annual Retail News Commercial Transport supplement once again sees Motoring Correspondent Padraic Deane reporting on the latest news across the van sector, including revealing the Continental Irish Van of the Year, the Volkswagen Crafter (Page 28).
News
4
16
Retailers Fuming over Government Reports on Alcohol Sales.
28 Seafood
16 BIM’s Seafood Circle Awards saw the finest supermarket seafood counters and specialist seafood retailers rewarded for their endeavours. But the real rewards include soaring seafood sales across the winning stores.
4 5
BWG Upgrades Customer Service Systems; Bord Bia Launch Mentoring Programme.
6
Tesco, SuperValu and Dunnes Outperform Market; Retail Lettings Looking Up; New CEO at Topaz.
7
12 Money spent at a
Kathleen Belton Editorial & Marketing Director
locally owned grocery store has a bigger impact on the local economy than that spent in a foreignowned multiple, according to a new report by economist Jim Power.
26
has been named National Off Licence of the Year at the NOffLA Off Licence Awards.
Tobacco Smuggling
26 The Government’s decision to increase VAT and excise on tobacco products is “sheer lunacy”, which is costing jobs, writes Benny Gilsenan, Spokesman, Retailers Against Smuggling.
38 Shelf Life
38 The latest news and gossip from the trade.
Regulars 8 Industry News 36 Market News
T A R A Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton
Poolbeg House, 1/2 Poolbeg Street, Dublin 2.
Editor: John Walshe
Tel: (01) 2413095 Fax: (01) 2413010
Advertising: Kathleen Belton
kathleen@tarapublishingco.com
Web: www.retailnews.ie Email: retailnews@tarapublishingco.com
Pat Murray
pat@tarapublishingco.com
Subscription to Retail News: e95 plus VAT Email: aoife@tarapublishingco.com
Adrian Murphy
adrian@tarapublishingco.com
Origination by: Rooney Media Graphics
Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen
Correspondent Padraic Deane presents the annual Retail News Commercial Transport Supplement, including news on the Irish Van of the Year 2012, Renault’s new electric Kangoo ZE and Mercedes’ new van purchase finance scheme.
35 Redmond’s of Ranelagh
Published by: Tara Publishing Co. Ltd.,
johnwalshe@tarapublishingco.com
28 Motoring
NOffLA Off Licence Awards
XL Store of the Year; Appointment at Retail Ireland; Marketplace International 2012.
Special Report
Commercial Transport
Printed by: W&G Baird
Reproduction without written permission is strictly prohibited.
Sectoral Reports 22 Healthy Options 32 Paper Products
8|Retail News|January/February 2012|www.retailnews.ie
Industry News Londis Renew Come Dine With Me Sponsorship LONDIS have announced the renewal of their highly successful sponsorship of Come Dine With Me on TV3, which includes Come Dine With Me UK, Celebrity Come Dine With Me UK, Come Dine With Me Ireland, and for the first time ever, Celebrity Come Dine With Me Ireland. The renewal follows an enormously successful agreement last year which saw the sponsorship enable Londis to reach almost 3.6m people, including 87% of adults aged 15+ and 89% of housekeepers. Unsurprisingly the big success in the year was the launch of Come Dine With Me Ireland, which reached almost 2.6m people, peaking at an average of 512,000 viewers. This year promises even more excitement, with two Celebrity Come Dine With Me Ireland and seven Come Dine With Me Ireland shows gracing our screens in 2012. The total Londis investment in the sponsorship and supporting campaign will be well over half a million euro, including in-store activation, PR and social media. Londis will continue to work closely with TV3 to maximise the impact of the sponsorship, utilising all available channels to once again deliver an award winning activation campaign. “TV3 is delighted Londis has renewed its award winning sponsorship of the immensely popular Come Dine With Me for the next 12 months,” said TV3’s Commercial Director Pat Kiely. “It is a fantastic partnership, and serves as a stand-out sponsorship, not only for its level of frequency with Come Dine With Me Ireland, Come Dine With Me UK and Celebrity Come Dine With Me, but also for the activation campaign surrounding it, including large scale promotional, digital and social media activity across TV3 Group as well as in store POS, and extensive PR.” Pictured are contestants on Celebrity Come Dine With Me Ireland: George McMahon, Roz Purcell, Brian Kennedy, Paul Martin and Noel Cunningham.
XL’s Photo Finish!
Flora Gets Pro-Activ with SuperValu FRANCES Delaney was the lucky winner of the amazing Flora Pro-Activ competition, whereby she won a year’s supply of groceries from SuperValu. This free text-to-win competition proved extremely popular, with thousands of entries nationwide. The grand prize was a €5,000 shopping voucher for SuperValu, while other prizes included Carlton Hotel Break vouchers. Pictured at Caulfield’s SuperValu, New Ross, Co. Wexford are (l-r): Conor Feeney, Unilever; winner Frances Delaney from Rosbercon, New Ross, Co. Wexford; Gavin Kane, Unilever; and Paula White, store manager, Caulfield’s.
WITH 187 stores nationwide, the XL brand is a fast-growing name in local communities all over Ireland and they’ve got lots of photos to prove it! XL’s photography competition saw consumers challenged to create a photo that depicted the most creative way of capturing the XL name, with over 155 top class entries received from consumers up and down the country. Overall winner, Shirley Kelly received a brand new Cannon SLR camera, accessories pack and half day training course with renowned photographer Podge Kelly, a superb prize valued at over €1,000, while the best entry in every XL store won a touch screen multimedia player. All entries can be viewed on www. picturexl.ie. Shirley Kelly is pictured, with her two daughters, receiving her prize from Pauline and Michael Hosey, Hosey’s XL, Carlow Town.
THE NEW COLD ACTIVATED BOTTLE & CAN
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10|Retail News|January/February 2012|www.retailnews.ie
Industry News ‘Gifted’ Developments at Gala GALA Retail Services has teamed up with Shared Access to provide mobile communication infrastructure installations: the partnership will accommodate increased data capacity requirements for new and emerging technologies such as I-phones and Android devices. Gala has high hopes it will bring an additional revenue stream to its retailers. “We looked at Shared Access as an opportunity to give real monetary value to our retailers without incurring any additional costs or risks,” said Eamonn King, Head of IT at Gala Retail Services, pictured with Aishling Dempsey and Niall Clyne from Shared Access. “The planning, infrastructure, and marketing to mobile operators are all supported by the Shared Access team so it’s a win-win deal for everyone.” In addition, Gala has introduced a giftcard for customers, which will encourage customer loyalty.
Londis Store Wins EIQA Award ROCHE’S Londis, Doneraile, Co. Cork has been awarded the prestigious ‘Emerald’ Food Safety and Hygiene Award from EIQA (Excellence Ireland Quality Association), in recognition of the high food hygiene standards maintained in-store. This is the highest level of certification in the Q Mark for Hygiene and Food Safety and is awarded to organisations who achieve 75% or higher following an unannounced store audit. This is the second year they have achieved this coveted ‘Emerald’ food safety and hygiene award, receiving an even higher audit score than last year. The store is also a habitual Gold Award winner at the Londis Retail Excellence Awards and last year was crowned the Londis Store of the Year. Store owners Majella and John Roche are pictured with Leo Jones (centre), ADM Londis, outside the Doneraile store.
Topaz Launch Drive Smart Campaign BOYZONE’S Shane Lynch has launched a new efficient driving campaign by Topaz, visiting the Topaz site at Glasnevin in Dublin, just down the road from where he worked previously in his dad’s garage as a mechanic. Shane also visited the state of the art Topaz site at Cashel at Junction 8 on the M8 Dublin Cork motorway. The award winning site has become the main stop-off point for motorists requiring fuel, a bite to eat or a short break. Shane, a keen driving enthusiast, says motorists could knock hundreds of euro off their motoring costs by adapting their driving styles and making a number of small but key changes: “Accelerating smoothly, removing unnecessary weight, avoiding tailgating and driving at a moderate speed are just some of the ways motorists can save money. Motoring costs are rising all over the world and Ireland is no different so it is up to drivers to drive smart and save money.”
Magazine Publishers Form Alliance
IMAGE Publications, Dyflin Media and Zahra Publishing have forged an alliance, Leading Magazines Company (LMC), to drive magazine sales and distribution across all three very distinct, but highly successful, brands. The publishing houses already account for seven of the top 25 bestselling Irish consumer titles, including IMAGE, Image Interiors & Living, Confetti, Prudence, House and Home, Easy Food and Easy Health, along with new launch Easy Parenting. While common practice in the UK and internationally, the move represents a first in the Irish magazine industry. LMC has recruited Jane Forrest, formerly of UK companies Frontline and Seymour, to head up its Irish operation. Pictured are (l-r): John Mullins, Zahra Publishing; Philip McGaley, Dyflin Media; Richard Power, IMAGE Publications and Jane Forrest, Leading Magazines Company.
Carry Out Retailer Triumphs CARRY Out Retailer Kevin O’Brien is pictured receiving the Responsible Trading Award at this year’s National Off-Licence Association (NOffLA) Awards, from Anita Gilmore, who developed the Responsible Trading Certificate Programme (RTC) for NOffLA. NOffLA introduced the new prestigious award this year to recognise the successful launch of the on-line module of the Responsible Trading Certificate (RTC) programme as a professional accreditation initiative to enhance staff training for those selling alcohol. “The staff and management at Carry Out Ashtown, Carry Out Mulhuddart and Carry Out Tyrrelstown are delighted with the award,” said a delighted Kevin. “We are part of the local communities in these areas and it is important to us that we set the highest standards of responsibility with regard to selling alcohol. The Responsible Trading Certificate (RTC) programme gives us the tools to do this and we would like to thank NOffLA for the opportunity to participate and win this award.”
Take a of the profit with Tasty Textures .
Whiskas BITE ‘n chew is a NEW instinctive eating experience for cats.
© Mars 2012
Packed full of roughly chopped meaty pieces in a soft meaty patè for maximum BITE ‘n chew satisfaction. Backed by a heavyweight TV campaign and instore promotions throughout the year, BITE ‘n chew is the perfect recipe for sales success.
12|Retail News|January/February 2012|www.retailnews.ie
Special Report
Community Challenge! Money spent at a locally owned grocery store has a bigger impact on the local economy than that spent in a foreign-owned multiple, according to a new report by economist Jim Power.
Pictured at the launch of the ‘Local Heroes’ Report are (l-r): Jim Deignan, Payzone; report author Jim Power; Minister for Small Business, John Perry TD; RGDATA Director General, Tara Buckley; and Joe Doyle of Donnybrook Fair.
MONEY spent at a local family-owned grocery store goes further for the local economy than money spent in a foreign-owned shop, according to a new report by economist Jim Power into the contribution made by local family owned grocery shops to their local and
national economies. The report, entitled ‘Local Heroes’, was commissioned by RGDATA, with support from Payzone, and found that an extra €100 spent in a locally owned shop results in an injection of €250 into the local economy, compared
to €140 for the local economy from the same sum spent in a foreignowned shop. “Consequently, if 10% of spending in the two largest multiples were to switch to locally owned retailers, it would result in an injection of an extra €670m into the local
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Special Report economy, creating jobs, supporting Irish producers and suppliers and keeping money in the local community,” the report argues. “It is a simple and incontrovertible fact that Irish family owned and run retail grocery shops contribute more and are better for Ireland than foreign owned retailers operating in the market here,” stressed Jim Power. “The research conducted as part of this study highlights that Irish shops create and sustain more jobs, invest significant amounts in local communities, are the best supporters of local producers and farmers and contribute €3.6 billion to the national economy.” The Report argues that Irish shops: • Create and sustain proportionally more jobs than foreign retailers; • Contribute more to their communities in terms of investment, employment and service provision; • Are the best supporters of Irish suppliers to the retail grocery sector; • Give a better return to the Irish economy for every euro that a consumer spends. “This Report is welcome and demonstrates the strong contribution that local shops make to local communities and the economy nationally,” noted Minister for Small Business John Perry TD, at the Report’s launch. “The dedication and perseverance of business people running locally traded businesses and the positive contribution they make to the lives of Irish people throughout the regions should not be underestimated. They are crucial to the enhancement of Ireland’s overall competitiveness and growth and should not be overlooked. Small business is not only a vital part of our economy; it is a vital part of our society and every local community.”
Concentrated Market
The retail grocery market in Ireland is becoming increasingly concentrated, argues the Report. The two largest multiples, Tesco and Dunnes Stores, now control almost 51% of the market, while German discounters Aldi and Lidl are growing market share at a significant pace. Indeed, the Report states that there has been a growing concentration of market power, with dominant multiples creating local monopolies across many parts of the country. “From the perspective of consumer choice and competition, this is a source of concern and there is a real danger that loosening the cap on
An extra €100 spent in a locally owned shop results in an injection of €250 into the local economy, according to the ‘Local Heroes’ Report.
retail size will only exacerbate these trends, unless the dominant players in those areas are precluded from further expansion,” the Report warns. In an environment where the grocery sector is growing modestly in overall terms, the notion that retail multiple openings will generate net job gains is fanciful, according to the Report: “The reality is that jobs created by the multiples largely result in job losses in other retail outlets that are forced to close or cut back on costs in a significant way. Policy makers need to recognise this reality.”
The Role of the Local Shop
The independent retail grocery and convenience sector consists of around 5,000 shops, convenience stores, forecourt stores, specialist food stores and supermarkets. It makes a very important contribution to the Irish economy through direct employment, local sponsorship, purchasing of local services and produce, advertising, investment, and it provides a very important local service to local communities. It is estimated that the sector is responsible for 93,317 fulltime equivalent jobs and makes a total contribution of €3.6 billion to the Irish economy. Research conducted by Jim Power, based on material submitted by
RGDATA members in a confidential survey carried out in the final quarter of 2009 and updated in 2011, provides evidence of the social and economic impact of local shops in their local community. The key findings in relation to local shops are as follows: • They are major employers in local economies and give many people their first job; • There is a strong family ownership structure; • They are major supporters of local and Irish suppliers; • They carry a wide range of products and provide a range of ancillary services; • They provide convenience to the consumer through location and opening hours; • They make a major contribution to the National Exchequer and the local authorities. The total amount of commercial rates paid by the sector is estimated at €55m, while the total amount of local authority charges paid by the sector is estimated at €24m per annum; • They invest significant monies in maintaining and improving their premises, an important stimulant to the local economy; • They have a significant advertising spend. Total advertising spend by
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Special Report the sector is estimated at €89m per annum.; • They have a significant sponsorship spend on local causes. Total sponsorship spend by the sector is estimated at €66.6m per annum; • They have a significant multiplier effect in the local and national economy (estimated at €3.62 billion in a year).
Employment
According to the Report’s research, for smaller shops, 30% of workers are full time and 70% part time. Since 2009, part-time workers are becoming a more significant component of this workforce. On this basis, the smaller shops, who employ an average of 7 workers, account for approximately 4,256 full-time equivalent jobs. For medium-sized shops that employ an average of 30 workers, the split between part-time and full-time workers is 50/50. On this basis the medium-sized shops account for approximately 60,093 fulltime equivalent jobs. For large shops that employ an average of 90 workers, the split between part-time and full-time workers is also 50/50. On this basis, the large shops account for approximately 28,968 full-time equivalent jobs. The research shows that average pay in the grocery retail sector is around €24,960 per annum. Around 15% of these earnings are paid in Income Tax, PRSI and USC, the net contribution to the national wage pool is €2.98 billion and the contribution to the Exchequer is €349m per annum. For all size categories, continuity of employment is very strong. 60% of employees have been employed for more than a year. The average length of employment for employees in all sized shops is five years. This continuity and stability of employment is very important, particularly given that all employees come from the local area, based on the research. It is also the case that the local shop very often provides the first job for many young people.
Wage Rates Wage costs represent one of the most significant operating costs, given the customer-focused nature of the business. Wage costs deteriorated very significantly up to 2008, but the relative situation has improved during the recession. However, the statutory monthly minimum wage in Ireland in 2010 was the second highest in the EU-15. The wage structure has been a serious issue for many independent retailers, who are struggling to survive in the face of intense competition and margin pressures. Behaviour of Multiples The Report argues that “If the power of the large multiples is allowed expand without constraint, smaller retailers will be steadily pushed out of business and the retail grocery market will come to be dominated by one or two big players.” The Report further argues that the growth of multiples at the expense of local retailers would be exacerbated by a further relaxation of the Retail Planning Guidelines (RPG): “The RPG is an essential component in seeking to maintain a balanced retail grocery sector, where independent grocers can continue to make a strong contribution to local economic activity.”
Parking and Traffic Management Many independent retail grocery shops are located in town centres, whereas the larger multiples tend to be located in out of town centres. There is a need for a consistent and coherent approach to parking and traffic management so that town centres are not penalised to the advantage of out-of-town centres. The Regulatory Burden The burden of regulation on retailers (estimated at €6,636 per annum) is very high and is regarded as a key impediment to business and job creation. Local Authority Charges and Commercial Rates Local authority charges, commercial rates, and planning levies are imposing considerable costs on the grocery sector. Significant progress has been made during the recession to reduce business costs to ensure survival, aside from charges imposed by the local authority system, particularly commercial rates. Between 2000 and 2011, Annual Rateable Valuations (ARVs) have increased significantly in all local authority areas, with the increase averaging 57% across the
Key Issues
The Report goes on to identify key issues facing the sector as follows: Weak Consumer Demand Overall consumer spending has weakened significantly over the past three years and the general environment for retailers has become very challenging.
Economist and Report author Jim Power (left), is pictured with Minister for Small Business John Perry TD (centre), at the Report’s launch in Donnybrook Fair, Dublin.
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Special Report Bank Credit If credit flow to small business does not resume quickly, many entrepreneurs will be forced out of business and many more jobs will be lost all round the country. State Supports The independent retail grocery sector should be given access to the full level of State supports available for the growth and retention of employment in other sectors. Food Price Inflation When adjusted for Purchasing Power Parities, the price level indices for the EU-27 show that food prices in Ireland were 28% higher than the EU-27 average in 2009. However, the Report argues that in any discussion on food prices in Ireland, proper account must be taken of the high level of wage and non-wage costs in Ireland. The reality is that there is now intense competition at the retail grocery level. There is no transparency around the margins being earned by the large retail multiples, but it is clear that the margins earned by the independent retail grocery sector are under constant downward pressure.
Conclusions
See www.rgdata.ie for the full ‘Local Heroes’ Report.
country. Commercial rates must adjust to the changed economic realities or many more retailers will be forced to close, with the loss of many more jobs, the Report argues. The Non-Wage Cost Environment Further progress on reducing business costs is required to facilitate business survival in what is still a very harsh economic climate. Planning and Casual Trading Laws There needs to be a stronger enforcement of the planning and trading laws. The ability of rogue traders to set up a stall or to trade in adapted premises without any of the compliance objectives that apply to retailers
seriously undermines retailers in established premises. Rents Upward only rent reviews in property leases remains a big issue for small business in Ireland. The reality is that many commercial property tenants have been able to get flexibility from landlords, reflecting the changed economic circumstances. However, the evidence suggests that retailers have generally found it very difficult to negotiate rents downwards, particularly with large institutional landlords. Consequently, many retailers are being forced out of business. The law must be changed to address this situation and provide a greater level of flexibility for retail clients.
Policy makers need to recognise the contribution that the independent retail grocery sector makes to the overall Irish economy and local economies in particular, according to the Report, which makes a number of recommendations: • Policy makers need to recognise the reality that the arrival of a multiple in an area will ultimately result in a reduction in employment as jobs are displaced in smaller retailers; • The Retail Planning Guidelines must be maintained and strengthened in order to preserve and sustain community based owner operated local shops; • The burden of regulation should be reduced by 25% across the board; • The burden of local authority charges and commercial rates must be reduced by 15%; • Certainty must be provided on upward only rent review legislation as quickly as possible; • The cost and logistical factors that result in higher food prices in Ireland must be recognised and addressed; • Planning and casual trading laws must be enforced. SEE www.rgdata.ie for the full report.
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Seafood BIM’s Seafood Circle Awards saw the finest supermarket seafood counters and specialist seafood retailers rewarded for their endeavours. But the real rewards include soaring seafood sales across the winning stores. Pictured receiving the Supermarket Seafood Counter of the Year 2012 Award from BIM’s Business Development and Innovation Manager, Donal Buckley (left) are Seafood Experts Milos Korivnek and Anatolij Butylkin, with Eugene Scally, owner, Scally’s SuperValu, Clonakilty.
BIM Rewards Seafood Innovators SCALLY’S SuperValu in Clonakilty, Co. Cork, was the big winner at the BIM Seafood Circle Awards 2012, where it won the Supermarket Seafood Counter of the Year Award and the Innovation & Development Award for the second year in a row. Store owner, Eugene Scally is justifiably proud of this achievement: “I’m thrilled that our store has won these awards, particularly for the two fishmongers I have working on our counter. For seafood to work, it needs time devoted to it by the people on the seafood counter: there’s no point in telling your deli person or butcher that they have to look after seafood. Seafood is a recognised department of our fresh food offering here in Clonakilty, and Scally’s of Clonakilty has become a destination store for fresh food and fresh seafood in the area. We have two full-time staff on the seafood counter, and we are looking to add a third this year.” The Seafood Circle was developed by BIM to support and champion retail and hospitality outlets that continually offer excellent quality seafood and
service to their customers. The Seafood The Elements of Success Circle plaque is presented to members The stringent criteria that need to on an annual basis and BIM encourage be met in order to gain membership customers to seek outlets with this extend well beyond providing the badge of honour in order to be assured of the best seafood available. Indeed, Minister for Agriculture, Food and the Marine, Simon Coveney TD, described the Seafood Circle, and the Awards in particular, as a “testament to the dedication of each and every one of these businesses”. He noted how, “despite the difficult economic climate, they are consistently improving what they do and achieving the Tony Walsh and Michelle Joyce from O’Tooles SuperValu, Tuam, exceptionally high are pictured with their National Award for Best Customer Service standards set out 2012 in the Supermarket Seafood Counter category of BIM’s under this initiative”. Seafood Circle Awards.
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Seafood
George Osborne and Cormac O Ceallaigh of Nestor’s SuperValu, Oranmore, pictured with the Newcomer of the Year Award 2012 in the Supermarket Seafood Counter category of BIM’s Seafood Circle Awards.
customer with excellent seafood. Outlets also have to demonstrate to independent assessors that they have superior knowledge of their product offering, have excellent customer service skills and comply with the strictest storage, handling and presentation requirements. Eugene Scally, believes there is another important element in seafood success, however: innovation. “From an owner’s perspective, you have to allow the people within your organisation to be innovative and to express themselves,” he says. “We all get the same delivery in the back door: the difference is in what you do with that delivery in-store. We need to encourage innovation in our thinking. We are surrounded by water and fresh fish, and yet our consumption of fish is not huge. This is where innovation comes in. If we can do different things with fish in order to encourage consumers to eat it, that is a big challenge.”
Adding Value to Seafood
Adding value to seafood has been a particularly successful area for Scally’s, who have seen sales soar in recent years thanks to their innovations in-store, such as the introduction of a seafood deli, the development
of ‘Fishpini’, a fish sausage created at SuperValu Clonakilty which sells 40-50kg each week, and the creation of other added value meals such as Salmon Wellington, seafood in filo pastry etc. “While consumers are used to ‘Prepared by the Butcher’ on the meat counter, we have introduced ‘Prepared by the Fishmonger’ to our seafood range, which adds value to our fish range in-store, whether it’s a Pollock Stew, a Stir Fry Prawn Curry or Salmon with Spinach,” explains Eugene. “We have added value to meat over the years, so why not carry that through to seafood?” Indeed, the store owner estimates that in one week alone, the value added seafood range brought an extra €1,500 in sales to SuperValu Clonakilty, highlighting the sales potential. “We’re getting young people into eating fish through products like fish sausages, fish cakes and fish burgers,” Eugene enthuses. “That is not rocket science. My message to any other retailer is to just go and do it.” Of course, Eugene pays tribute to the support and back-up he receives from his innovative staff, as well as from Musgrave Retail Partners Ireland and BIM. “BIM are interested in developing the seafood sector in Ireland and we’re interested in developing our seafood sales, so we work hand-in-hand and we find them very supportive and helpful in developing our seafood offering to consumers,” he sums up.
a fact not lost on Fleming’s SuperValu in Monaghan Town, who won the Best Display Award this year. “We are delighted to win the BIM Seafood Display of the Year, justifying our substantial investment in 2010 in our seafood counter,” smiles Robbie Herron, Store Manager. “Customers are served from the front of the counter, so as to engage more with them, and this has proved to be very successful for us. Tastings are carried out every other week, allowing our customers to taste fish which they might never have tasted and also see how easy it is to cook fish. We always have different special offers on each week, as well as a fish of the week. Recipes are always available, along with hints and tips on how to best cook fish dishes. Our expert staff, who take ownership of the counter and who consistently deliver the highest standards in seafood, along with our very loyal customers have helped us increase our seafood sales by 15% in 2011. “ Another store enjoying strong sales growth is Nestor’s SuperValu, Oranmore, Co. Galway, winner of the Best Newcomer Award, whose seafood sales grew by 15% in 2010, and by a further 20% in 2011. “Nestor’s is recognised as being a destination store for fresh food, particularly for our butcher’s, and we wanted to get our fresh fish up to the same level,” explains Liam Coady, store manager. To this end, Nestor’s invested heavily in their seafood sector, from their impressive seafood counter to staff training. Indeed, Nestor’s,
Reward on Investment
Kenny Gorman, Gordon Fleming and Lidia Janiec of Fleming’s SuperValu, Monaghan, pictured with the Best Display Award in the Supermarket Seafood Counter category of BIM’s Seafood Circle Awards.
Ensuring your seafood is as enticing as possible to potential customers is another key factor in its development,
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Seafood in conjunction with BIM, organised dedicated seafood training for staff, held in a classroom environment, to ensure that they had depth of knowledge right across the seafood sector, from 8am until 10pm every day. “We have up to four fresh fish deliveries per day, at 7am, 11am, 2pm and 5pm. That is the key to keeping our seafood so fresh. We have great suppliers here in Galway, and we have built up a reputation with these suppliers, which has grown hand-inhand with the success of our seafood sector in-store,” Liam states. “In 2010, we moved our seafood counter to a more prominent position in-store, and we introduced a lobster tank, fresh mussels etc. Already, we are looking at increasing the seafood counter further. We’re also considering placing a fish counter at the front of the store at key sales periods, like Ash Wednesday, Holy Thursday etc, which would bring a theatre element to our seafood. We have made a long-term commitment to seafood, which BIM recognised, and they have worked with us to help us grow our seafood sales.”
BIM Seafood Circle Award Winners Category
Award
Supermarket Seafood Counter
Supermarket Seafood Counter of the Year 2012
Scally’s Super Valu, Clonakilty, Co Cork
Best Display 2012
Fleming’s SuperValu, Monaghan Town
Best Customer Service 2012
O’Toole’s SuperValu, Bishop St., Tuam, Co. Galway
Newcomer of the Year 2012
Nestor’s SuperValu, Oran Town Centre, Oranmore, Co. Galway
Innovation & Development Award 2012
Scally’s SuperValu, Clonakilty, Co. Cork
Seafood Specialist of the Year 2012
Kish Fish, 40-42 Bow Street, Dublin 7
Best Display 2012
The Seafood Centre, The Docks, Galway
Best Customer Service 2012
The Fish Shop, Main St, Union Hall, Cork
Newcomer of the Year 2012
McAllister’s, 11 Village Centre, Lucan, Co Dublin
Innovation & Development Award 2012
Feeney’s Fish, 30 Barton Drive, Rathfarnham, Dublin 14
Seafood Restaurant of the Year 2012
QC’s, 3 Main St., Cahirciveen. Co. Kerry
Seafood Chef of the Year 2012
Patricia O’Mahony, Mary Ann’s Bar & Restaurant Castletownsend, Skibbereen. Co. Cork
Best Customer Service 2012
Castle Murray House Hotel, St. John’s Point, Dunkineely, Co. Donegal
Newcomer of the Year 2012
Crazy Crab, Kilmore Quay, Co Wexford
Most Informative Menu 2012
Out of the Blue, Waterside, Dingle, Co. Kerry
Seafood Specialist
Increasing Sales by 30%
When it comes to seafood, BIM believes that even with some small adjustments and changes to how the counter is managed; increases of 10-30% can be achieved over a short period of time. “The seafood counter can be an exciting and profitable section of the back wall,” notes Donal Buckley, BIM’s Business Development and Innovation Manager. “The key to making it work is appointing a designated, knowledgeable person to manage the seafood area as a separate department.” The barriers to fish consumption have not changed over the past 10 years and retailers now need to seriously look at how seafood is sold, Buckley maintains: “Consumers, particularly those under 40, must be attracted to the category. They are aware of the health benefits of fish consumption but are not skilled in the art of preparation and cooking. To grow and develop, the seafood retailer must offer customers a wider range of formats and quicker, easier meal solutions.” BIM offers a ‘health check’ service to retailers which helps identify issues that may be restricting growth and offers recommendations on how the counter can be developed. For more information or to arrange a health check, email obyrne@bim.ie.
Hospitality
The new look seafood counter at Fleming’s SuperValu in Monaghan Town, winner of Best Display Award in the Supermarket Seafood Counter category.
www.retailnews.ie|January/February 2012|Retail News|19
Breakfast
Belvita Breakfast’s New Flavours BELVITA Breakfast is waking up to a year of innovation, with the launch of three new flavours – Muesli, Forest Fruits and Honey & Live Yogurt – giving Irish people three more reasons not to skip breakfast. The new Belvita Breakfast Muesli is a sumptuous combination of wholegrain cereals, raisins and orange. Each serving provides 15% of the Recommended Daily Amount (RDA) of vitamins B1, B3 and B6. Forest Fruits contains a blend of wholegrain cereals and forest fruit pieces, with every serving providing 18% of the RDA of vitamins B1, B2, B3, B5, B6 and folic acid. Both variants come in
individually wrapped servings of four biscuits. The new Honey & Live Yogurt Crunch adds a second sandwich variant to the Belvita Breakfast range. It consists of two crunchy Belvita Breakfast biscuits containing wholegrain cereals, sandwiched together with a creamy honey flavour yogurt filling. It comes in individually wrapped servings of two sandwich biscuits and provides at least 15% of the RDA of Vitamin B1 (Thiamin), Vitamin E and magnesium. As with the Yogurt Crunch variant, which launched in 2011 with great success, Honey & Live Yogurt Crunch also contains live yogurt cultures. The three new varieties are rolling out in leading supermarkets and retailers, alongside the rest of the Belvita Breakfast range, which includes Milk & Cereals, Fruit & Fibre, Honey & Nuts with Choc Chips,
Crunchy Oats and Yogurt Crunch variants - providing plenty of tasty reasons to not skip breakfast! Belvita has exciting plans for 2012, including TV and radio advertising, digital activity and in-store promotions, so Belvita promises to be front-of-mind with customers.
FAST LIVES NEED FLAVOUR Moy Park’s unmissable advertising returns this Spring guaranteeing massive awareness and consumer interest with: launch on TV with follow up activity • March through to end of 2012 integrated media campaign with TV, • Fully Press, Online, Outdoor and Radio
• A significant annual spend of over €800,000 • Over 95% coverage of consumers THE HOME OF IRISH CHICKEN iloveirishchicken.ie
So make sure you’re stocking it!
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22|Retail News|January/February 2012|www.retailnews.ie
Healthy Options
Healthy Profits Irish consumers’ desire for healthy foods shows no signs of abating. including advertising, digital, PR, Health and wellness foods continue Glanbia on-pack adverts, and a strong focus to prove popular with Irish consumers, Avonmore Milk, Ireland’s number on in-store tastings nationwide. Heart despite the economic climate. one milk brand, has introduced new Active will also feature on Avonmore’s Indeed, in their most recent Avonmore Heart Active Milk, with sponsorship of the weather on RTE and report into the sector, added plant sterols, which have TG4. Euromonitor state that been proven to reduce cholesterol. “health and wellness This launch is part of Glanbia’s products appeared to continued strategy of driving Weight Watchers be recession proof in growth in the premium fortified from Heinz Ireland.” milk sector, which is led by the Weight Watchers from Heinz is the With increasing Avonmore Super Milk brand. undisputed leading brand in the concerns over our Cholesterol is now a frozen ready meal sector with 33.2% health, and frequent mainstream health issue, with volume share of the total frozen media reminders one third of the Irish population ready meal market, which is valued about soaring obesity concerned at their cholesterol at €15.2m (Source: TNS June 2011). rates, manufacturers levels, and over a third of all Manufactured in Dundalk, County continue to launch an households buying cholesterol Louth, the Weight Watchers from increasing number lowering products, in a sector Heinz range of frozen ready meals of products for those that continues to grow. continues to drive the category with who want to maintain Now Irish consumers can convenient meal solutions in both a healthy lifestyle. get cholesterol-reducing plant traditional and ethnic varieties. Indeed, Euromonitor sterols in the one thing they The range has everything to offer maintain that better have every day, milk, with new consumers who are seeking to lead a for you (BFY) food Avonmore Heart and beverages are Active Milk. now mainstream in Whether it’s on many categories, like its own, in tea, reduced fat milk. coffee, or cereal, Irish consumers consumers want to eat healthily, can get their yet they don’t want daily plant to compromise on sterols, with taste. Manufacturers no compromise Irish consumers can have invested in new on taste. now get cholesteroltechnologies to create Consuming just reducing plant sterols healthier alternatives two to three in milk, with new to satisfy this glasses every Avonmore Heart Active Milk. consumer demand. day for two to Euromonitor predict three weeks can continued growth in healthy options, help reduce cholesterol with continuous new product launches by 7-10%. and further product developments This exciting providing the opportunity for the new launch will be The Weight Watchers from Heinz frozen ready meal health and wellness market to keep its supported by a heavyweight range offers an extensive range of market leading value sales high. brand marketing campaign, recipes, like Chicken Tikka Masala.
Lowers cholesterol. Raises profits. NEW
Avonmore Heart Active
It’s milk with added plant sterols, it can be used in all the same ways as regular milk, and has the great taste you would expect from Avonmore. And the good news is that enjoying just 2-3 glasses of Avonmore Heart Active every day for 2-3 weeks can help reduce cholesterol by 7-10%. Over a third of Irish households now buy cholesterol-lowering products in an ever-growing sector. The launch of Avonmore Heart Active will be supported by a heavyweight launch campaign, including TV, radio, press, PR and tastings. So stock New Avonmore Heart Active today and watch profits rise. Avonmore Milk is the leading brand in the milk category and the number two grocery brand in the Checkout top 100. Plant sterols have been shown to lower blood cholesterol. High cholesterol is a risk factor in the development of coronary heart disease. The beneficial effect is obtained with a daily intake of 1.5-2.4 g plant sterols - that is, 2-3 250ml servings of Avonmore Heart Active every day. A reduction of 7 to 10% can be achieved in 2 to 3 weeks. Consume as part of a balanced/healthy diet and lifestyle. This product is intended exclusively for people who want to lower their blood cholesterol.
24|Retail News|January/February 2012|www.retailnews.ie
Healthy Options more recently in Asia as a sweetener. As a natural origin, low-calorie alternative to sugar, Pure Via will provide a new way to enjoy sweetness and can prove extremely useful in helping maintain a healthy diet and lifestyle. With a planned large investment in Ireland, Pure Via aims for a leadership position in the Irish market within its first year of launch. In France, where it was launched in March 2010, Pure Via has gained an 80% share of the Stevia-based sweetener market by value, with half of these consumers being new to the low-calorie sweetener Jacob’s Why Not? is an indulgent new snack bar market. range that consumers don’t have to feel guilty Pure Via will be distributed about, as each bar contains less than 100 calories. in Ireland by Stafford Lynch Ltd, and the range comprises: Jacob Fruitfield Food Group an 80g pack of granules, a pack of 40 Jacob’s new range of indulgent snack granular stick sachets and a pack of 65 bars, Why Not? are an ideal treat, cubes. as each bar contains less than 100 One teaspoon of Pure Via Granules calories. Irish consumers usually start (2 calories) is equal in sweetness to the day with good intentions, but one teaspoon of sugar (20 calories) and sooner or later give into the temptation easy to use over fruit and cereal as well of a tasty treat. They felt low calorie as cooking and baking recipes. One alternatives lack taste and appetite Pure Via cube and one stick sachet appeal (Source: B&A March 2011). have zero calories and are perfect for Hence, the launch of Why Not? hot drinks. See www.purevia.ie for Why Not? is an indulgent treat that more information. consumers don’t have to feel guilty about, as each bar contains less than Stafford Lynch Ltd 100 calories. There are three delicious Derived from nature, Pure Via is a variants in the range: Fruit & Nut, Stevia-based low calorie sweetener Chewy Chocolate and Chocolate & that will be hitting shelves across Orange. The packaging was designed Ireland: Stevia, originally native to appeal to females and has very high to Paraguay, has been used for shelf stand-out. The bars are packed centuries in South America and in eye catching boxes of six with a recommended RSP of €2.79. The launch of Why Not? is supported with a strong nationwide sampling program. A free bar was given away with the January issues of Woman’s Way, Irish Tatler & U magazines. 150,000 consumers are also being targeted with money-off coupons, while the product was also sampled in Peter Marks hair salons during January, with over 50,000 consumers targeted. The campaign is supported with extensive public relations activity and a digital campaign. “We have produced an excellent tasting low calorie product, which has been well received by consumers, endorsed by the Jacob’s brand name and a strong marketing program, which will drive retail sales in-store,” As a natural origin, low-calorie alternative to sugar, Pure Via will provide a new way to enjoy notes Loretta Dignam, Marketing sweetness and can prove extremely useful in helping maintain a healthy diet and lifestyle. Director, Jacob’s Foods. healthy lifestyle but who expect not to compromise on taste. To mark the launch of Pro-Points in early 2011, the Weight Watchers from Heinz range has undergone a redesign, with improved photography on pack resulting in increased appetite appeal. The Weight Watchers from Heinz frozen ready meal range offers an extensive range of market leading recipes such as Chicken Tikka Masala, Creamy Chicken & Mushroom Pasta and Ocean Pie. Proving that consumers can still have the naughty treats that they love, Weight Watchers from Heinz also offers a delicious range of frozen desserts, including delectable recipes such as Belgian Eclairs and Double Chocolate Brownies. The recently launched Weight Watchers from Heinz Lunch Boxes in two tasty varieties – Creamy Mushroom Rigatoni with Green Peas and Chicken Penne Pasta in a Smokey Tomato Sauce – offer tasty, convenient, savoury snacks in five minutes from the microwave, made with high quality ingredients and packed in convenient packaging, ideal for lunch or snacking occasions. All products within the Weight Watchers from Heinz range exclusively feature the Weight Watchers ProPoints value per serving on pack.
www.retailnews.ie|January/February 2012|Retail News|25
Healthy Options Flahavan’s
Flahavan’s have been milling oats in County Waterford for over 200 years and provide millions of Irish people with an energy packed healthy breakfast. Flahavan’s have invigorated the category by delivering more growth and by bringing more consumers to the hot oat category through offering healthy solutions that meet consumers’ needs. Health conscious consumers have highlighted the increasing need for foods that make it easier and more enjoyable for them to lead a healthier lifestyle. Proven to help reduce cholesterol levels with a low GI Index, Flahavan’s porridge oat product range provides just that: an energy packed, healthy breakfast that sets you up for the day. Flahavan’s have launched a delicious Multi Seed Porridge as part of their Quick Oats and variety bagged range to meet the ever-changing needs of consumers for a healthy breakfast. The innovative range will attract health-conscious consumers to the growing hot oat cereal category. The Multi Seed Porridge range combines Flahavan’s Porridge Oats with Sunflower, Flax, Pumpkin and Hemp seeds to provide an additional tasty healthy boost to breakfast time. Available in sachet, portable porridge
Flahavan’s innovative range will attract health-conscious consumers to the growing hot oat cereal category.
pot and bag formats, Flahavan’s Multi Seed Porridge is packed with essential nutrients and vitamins and is a source of Omega 3 fatty acids, protein and fibre. Porridge Oats are a natural superfood and the health benefits associated with oats address a broad range of health issues from nutrition, diet and weight management to long-term heart health. Consumers realise how porridge for breakfast provides them with enough energy for the first half of the day, stabilising blood-sugar levels and helping to avoid those all too tempting mid-morning snacks. Porridge is low in saturated fat and salt and contains no artificial flavourings, colourings or preservatives. See www.flahavans.com or www.facebook.com/flahavans for more. Flahavan’s is proud to support Love Irish Food – an initiative led by Irish manufacturing brands seeking to promote Irish food and drink brands in Ireland.
go ahead!
go ahead!, with its range of great tasting better-for-you snacks, has teamed up with Unislim, the Irish owned health and slimming company, to offer consumers a saving of €20 on six weeks Unislim membership. Consumers simply purchase any go ahead! pack, take their till receipt to any of the 180 Unislim classes nationwide and save €20 on six weeks membership! go ahead! have carefully selected the perfect balance of ingredients to create their delicious on-thego range for the perfect healthy alternative for snacking. Along with reduced saturated fat, the go ahead! range also contains a selection of vitamins, including Calcium, Iron, Niacin, Riboflavin (B2), Vitamin B12, Vitamin D, Vitamin B6 and Thiamin (B1). Indeed, go ahead! Fruit Bakes is now
go ahead! Fruit Bakes: equivalent to one portion of consumers’ daily fruit & vegetable requirements.
equivalent to one portion of your daily fruit & vegetable requirements. The range also encompasses a variety of snacks and flavours, including Ireland’s favourite Forest Fruit Yogurt Breaks, Orange & Sultanta Crispy Fruit Slices and delicious Apple Bakes.
BFree Foods
BFree was developed to bring tasty, ‘good for you’ wheat and gluten free breads to the market. “When wheat is removed from bread products, it is as if the ‘scaffolding’ that holds the structure together is pulled apart. BFree has developed a recipe and composition that replaces the gluten and wheat and with natural ingredients,” says a company statement. The BFree range includes a Soft White Loaf, with each 35g slice containing less than 1g of fat and only 71 calories; a Brown Seeded Loaf, made with toasted sunflower seeds and golden linseeds; 4 Brown Seeded Rolls and a White Demi Baguette, which comes in a bake at home bakeable bag, so consumers can refresh in their oven and indulge in a fresh hot and crispy demi baguette. BFree recently opened a pop-up store on Duke Street in Dublin, where visitors had the opportunity to try the excellent range of BFree breads, which have been flying off the shelves since their launch in December in Dunnes Stores nationwide, and also to consult with Paula Mee, Ireland’s leading dietician, for free advice on healthy diets for 2012. See www.bfreefoods.com for more information.
26|Retail News|January/February 2012|www.retailnews.ie
Tobacco Smuggling
Government ‘Lunacy’ to Drive
Illegal Tobacco
Sales:
The Government’s decision to increase VAT and excise on tobacco products is “sheer lunacy”, which is costing jobs, writes Benny Gilsenan, Spokesman, Retailers Against Smuggling.
Failure to tackle the problem of illegal tobacco sales cost the public finances €435m in 2010 and made for a loss to retailers of €575m in the same year.
IRELAND is in the middle of a severe recession and independent retailers are suffering. Faced with upwardsonly rents and finding it tougher to get credit, they are also confronted with an even greater problem that threatens to deal a death blow to their businesses: the illegal cigarette trade. Ireland’s problem with cigarette smuggling and illegal selling has been growing for a number of years, and members of Retailers Against Smuggling (RAS) have to deal with the fallout of this criminal activity every day. Our organisation has almost 3,000 independent retail members around the country and the sale of illegal cigarettes on street corners, door-to-door and at markets and fairs is having a hugely negative impact on their trade. Cigarette sales make up about 20-40% of an independent retailer’s
business, but the problem is bigger than that, as smokers who come into our stores buy other impulse items like sweets, crisps, a can of Coke or a newspaper. If they buy cigarettes on the street corner, there is no call for them to come into our stores and they won’t buy impulse items - this means that we retailers lose even more sales. This is no idle claim, and the effect of the illegal trade on retailers is there for everyone to see in our latest annual survey. The survey was carried out in October 2011 and showed that our members had let go a minimum of 700 workers in the previous 12 months. The reality is that the job losses were far higher and the figure could be even bigger than the Ulster Bank redundancies. My own experiences as a retailer are the same as the other RAS members who replied to the survey. I own a small shop in Emmet Street in central Dublin, and due to the effects of the illegal trade, we recently had to let go two part-time staff members. It was the only way that we could keep the store open. As it’s a family business, we now find ourselves working much longer hours.
€435m in 2010 and made for a loss to retailers of €575m in the same year. It’s easy to talk about plans to create jobs and get Ireland working again, but if the Government can’t even safeguard existing jobs, then the unemployment problem will get worse and worse. The only official recognition of Ireland’s huge cigarette smuggling problem came when fines for cigarette smuggling were increased to €126,000 in budget 2010. This was a welcome move, but there’s a big difference between changing a law and enforcing it. The reality is that when cigarette smugglers or illegal sellers are brought before the
Inadequate Government Response
So how is Ireland’s Government responding to the cigarette smuggling problem? If truth be told, not very well. At a time when businesses and consumers alike are facing a raft of new taxes and charges, the failure to tackle this problem cost the public finances
Benny Gilsenan, Spokesman, Retailers Against Smuggling, and owner of Benny’s store on Emmet Street in Dublin.
www.retailnews.ie|January/February 2012|Retail News|27
Tobacco Smuggling The importance of cigarette sales to retailers: sales as a percentage of turnover
cigarettes and pushed the price to Base: All retailers - 200 over €9 per pack. Tobacco Sales (excluding ancillaries) Tobacco Sales (including ancillaries sale (lighters, chewing gum etc.) At the same % % Total Total 18.14 22.54 time, the price of illegal cigarettes is Dublin Dublin 21.11 29.12 falling all the time. Rest of Leinster Rest of Leinster 15.04 17.85 I hear from our Munster Munster 20.55 20.54 retailer members Conn/Ulster Conn/Ulster 14.04 19.63 around the country that a packet of Franchise Franchise 17.39 20.50 20 cigarettes is Forecourt Forecourt 17.67 26.53 available for as Independent Independent 25.50 25.27 little as €3.20 on the black market, which means that The importance of cigarette sales to retailers: sales as a consumers can percentage of turnover (Source: Behaviour & Attitudes). buy almost three illegal packets for the price of one legal packet. courts, they get a slap on the wrists Increasing VAT and excise together and an average fine of about €1,500. was sheer lunacy as it contradicts the This means nothing to criminal gangs European view and the Revenue’s own who are making over €3m a week in view about how to tackle the problem. profits. Last year, Europol, who deal with Judges, like the public, still view crime across the EU, said that Ireland the sale of illegal cigarettes as a was one of five preferred destinations victimless crime, but nothing could be for smugglers. We earned this status, further from the truth. The trade is Europol said, because of the high controlled by the same ruthless thugs prices on cigarettes and the low fines who launder fuel, sell drugs and are handed out to criminals. Europol involved in dissident republicanism. stopped short of saying that all that A few weeks ago, Customs seized a was missing was a ‘welcome’ sign at large quantity of cigarettes in Limerick the Irish border. City, and during the raid also found Also last year, Revenue put out counterfeit alcohol and DVDs. If a report that said if the price of anyone needed reminding about the cigarettes was to increase, it would links between smuggled cigarettes and create a ‘tipping point’ and the level of criminality, then there it was. smuggling into Ireland would go up. What part of these valid arguments Exacerbating the Problem did Michael Noonan not understand? So what was the Government’s He even seems to be contradicting response to this problem? They did himself about raising excise on the one thing that was sure to make cigarettes. A few months before the the problem worse; they put up VAT budget, in September 2011, Minister and excise on cigarettes in the budget. Noonan had this to say in the Dáil When taken together, both measures about the effects of raising excise put 45 cent onto a packet of legitimate on cigarette Impact of black market cigarette trade over the next smuggling: “We year: retailer expectations have a big problem Base: Trade effected 147 Increased Increased customs Type of Business with smuggled and revenue Garda Total presence Presence Franchise Forecourt Independent tobacco and the higher the excise, the greater the 48 50 smuggling. We 58 A greater extent in 62 63 64 the next 12 months have the highest excise on tobacco products in 30 32 The same in the 26 Europe at present. 24 next 12 months 24 21 There is a direct 17 To a lesser extent in 18 16 13 14 12 the next 12 months relationship 4 Don’t know 1 1 0 0 0 between the level The majority of retailers believe that there will be a greater impact on their business in the coming year due to the illicit trade. of excise and the black market Impact of black market cigarette trade over the next year: retailer sales of smuggled expectations (Source: Behaviour & Attitudes). tobacco.” Q12
Q11. Approximately, how much do tobacco sales (excluding lighters, matches and ancillary products) account for in your overall annual turnover? Is it ……
147 %
95 %
38 %
Approximately how much do all tobacco related sales (including lighters. matches, chewing gum, chocolate bought with the purchase of cigarettes) account for in your overall annual turnover? Is it ….
14* %
23 %
28 %
* Caution low base
Balance
+49
Q2.
+51
+42
+50
+31
+32
Thinking about the year ahead, do you expect the black market trade in cigarettes to negatively impact on your business to a greater, a lesser or the same extent as the last 12 months?
But then he appeared to ignore the advice of experts, forgot what he had to say about it himself and went ahead and increased VAT and excise anyway. It’s too early to say for sure how these increases will affect our trade. I’m not a betting man, but I’d be willing to wager that the increases will not lead to more tax revenue as the Government had hoped and are more likely to have the opposite effect. The reality is that it will push hardpressed consumers towards the illegal market, where they’ll buy unregulated products from criminal gangs who will use the funds for other illegal activities. These products have a huge health risk as they are often produced with no regard for any kind of regulations or checks. The growth in the illegal market will also put children in danger. We already hear from our members that illegal sellers get children to flog their wares so the criminals can avoid prosecution. It is also true that criminal gangs do not ask for age ID and sell indiscriminately to minors. If the illegal market keeps on growing, I have no doubt that the public will have to pay for the health costs associated with these unregulated products.
RAS Proposals Ignored
Before the budget, RAS sent Minister Noonan some proposals that we felt could help to tackle the problem. These included the introduction of a minimum fine of €10,000 to deter smugglers; changes to existing laws to clamp down on illegal selling at markets and fairs; an awareness campaign to educate people about the dangers of buying cigarettes on the black market and the involvement of the Department of Health in clamping down on illegal selling at markets. We also asked the Minister not to increase excise, but he didn’t listen to this idea either. Our proposals would not have cost anything. In fact, if introduced, they would tackle the problem and save the State money that it could spend elsewhere on schools and hospitals. Instead, the Government decided to make a flawed decision and increase VAT and excise at the same time. In the end, this will only make the smuggling problem worse and retailers, the cash-strapped consumer and children will suffer. Don’t say we didn’t warn you, Minister.
28|Retail News|January/February 2012|www.retailnews.ie
Commercial Transport
COMMERCIAL TRANSPORT SUPPLEMENT
VW Crafter is Continental Irish Van of the Year 2012 THE Volkswagen Crafter has been voted Continental Irish Van of the Year 2012 by the Irish Motoring Writers Association (IMWA). The Crafter, with 44 points, finished just ahead of the Fiat Ducato EU5 on 38 points, with the Fiat Doblo Workup in third place on 29 points. In determining the result, all nine voting members of the Irish Motoring Writers Association van jury sought out attributes like value-for-money, reliability, versatility and lasting residual value. “The VW Crafter is a worthy winner of the Irish Van of the Year title, ideally suited to the needs of Ireland’s commercial vehicle operators,” said Paddy Murphy of award sponsors, Continental Tyres Ireland, presenting the award to Niall Phillips of Volkswagen Commercial Vehicles Ireland. “In the current tough market conditions for commercial vehicles, we are sure that the award will contribute in no small way to the ongoing success of the Crafter.” There are 260 versions of the Crafter available to suit a range of requirements, with prices starting at €22,000 excl. VAT. Volkswagen
launched the new Crafter on the Irish market last August, complete with fuel consumption and CO2 emissions reduced by a staggering 33% and maintenance costs reduced by up to 25%. The new Crafter’s maximum payload is increased by 10% in some models and provides a free of charge extended warranty for the third year of operation (or up to 250,000 km) across all models. Available in three gross vehicle weight derivatives of 3,000kg, Niall Philips, Sales & Marketing Manager of 3,500kg and 5,000kg, three van Volkswagen Group Ireland, is pictured with lengths, SWB, MWB and LWB, plus model Hannah Devane. a Super Long and Extra High option in some models, the new Crafter a gear change indicator is featured as range offers a practical option for every standard. commercial need, especially when you Visually, the new Crafter adopts consider the single and double chassis the company’s current design DNA, cab versions. A window van is also which also characterises the Caddy, available. The all new Crafter range Amarok and Transporter model features a 2.0TDI common rail engine, ranges. Standard equipment includes offering more fuel efficiency than ABS, ESP, Electric Windows, Electric ever before. Indeed, fuel consumption Heated Door Mirrors, Remote Control is improved by up to 2.3l/100km in Central Locking, Twin Air Bags and some versions. The engines come in 270 degree wrap around rear doors. A three power output versions, 109bhp, host of optional extras are also available 140bhp and 163bhp. All are mated including a Start/Stop system to reduce to a six-speed manual gearbox. To fuel consumption even further. help improve fuel efficiency further,
Continental Irish Van of the Year Category Winners THE Volkswagen Amarok pick-up (Commercial SUV) and the Fiat Punto (Car Derived Van) were voted Category
Winners at the Continental Irish Van of the Year 2012 Awards by the Irish Motoring Writers Association (IMWA) van jury. “In today’s tough commercial vehicle market, these two great vehicles have won the valuable endorsement of the Irish Motoring Writers Association,” said Paddy Murphy of Continental Tyres Ireland. Chairman of the Irish Motoring Writers Association van jury, Michael Moroney The Volkswagen Amarok: Commercial SUV of the Year said, “The Continental Irish 2012 at the Continental Irish Van of the Year Awards. van category awards are
of particular interest to Irish van / commercial drivers and fleet managers, as they highlight the niche models best suited to the particular requirements of the Irish market.”
The Fiat Punto: Car Derived Van of the Year at the Continental Irish Van of the Year Awards.
www.volkswagenvans.ie
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30|Retail News|January/February 2012|www.retailnews.ie
Commercial Transport Renault Goes Electric RENAULT Ireland’s MD, Eric Basset has set an interesting challenge for his dealer network and team that aims to see 1,000 Renault electric vehicles sold by the manufacturer in Ireland this year. The Renault boss, who has overseen the marque’s market share double since his arrival in Ireland in 2009, is confident that one in every 10 Renault vehicles sold in 2012 will be electric. He has also stood by his commitment to make electric vehicles affordable to all and reminds those in any doubt that Ireland is leading the way in Europe for infrastructure and availability of electric vehicles. The 2012 International Van of the Year, the Renault Kangoo ZE is now available to test drive at dealerships all over the country priced from €16,400 incl. VRT ex VAT, and including the Government grant of €3,800. Additionally, the Kangoo ZE battery will cost €75 ex VAT per month to lease (based on 48 months,
15,000km per year). Renault Kangoo ZE will be available in three sizes, including the Kangoo Maxi ZE 2 seat and 5 seat models. It comes with five years unlimited mileage warranty as standard. Renault tells us that the electric van has already seen a huge interest in Renault Ambassador Keith Barry along the first Kangoo ZE France where 15,000 Van on Irish roads. Kangoo ZE have already been ordered Electric Kangoo is by some of France’s largest companies, International Van of including La Poste, the French postal the Year 2012 service. Following the Kangoo ZE van will THE Renault Kangoo ZE has been be the Fluence ZE Saloon in March, voted International Van of the Year with the Twizy urban quadricycle 2012 by a jury of 22 European and the compact hatch, Zoe, all due to journalists, specialising in light appear on Irish roads in 2012.
Van Owners Get Overloading Warning MORE van and light goods vehicle (LGV) operators may be unwittingly increasing their fuel and running costs, and reducing their safety by overloading their vehicles. The warning was issued by TyreSafe, the UK’s leading tyre safety organisation, after the latest VOSA effectiveness report showed that the LGV overloading prohibition rate by traffic enforcers increased from 66.9% in 2008/09 to 72.7% in 2009/10. Unless
operators compensate for carrying heavy loads by increasing their tyre pressures to the recommended levels, their tyres will wear out quicker, their fuel consumption will increase and their safety may be compromised. The correct pressures for both the laden and unladen state of the vehicle can be found in the vehicle manufacturers’ handbook, inside the fuel filler cap or on a plate located on the front door sills.
commercial vehicles. It is the first time that an electric vehicle has won this prize, competing against numerous internal combustion vans. The jury chose the Kangoo ZE for its zeroemission virtues, as well as for its practical and economical qualities. “With the Kangoo ZE, Renault brings the electric van within the reach of the normal European van user,” said jury chairman Pieter Wieman, “thereby delivering a major contribution to environmental sustainability, one of the most important issues of the transport of goods by road nowadays.”
Vantastic Performance from Ford FORD topped the Irish Light Commercial Vehicle / Van market in 2011, with the Transit the top selling van, followed by Volkswagen in second place, with Renault, Toyota and Nissan making up the top five. Toyota was the top passenger car brand for 2011, while when new car and van sales are combined, the top selling new vehicle brand of 2011 was Volkswagen. Meanwhile, the Ford Ranger recently became the first pick-up to achieve a five star rating in Euro NCAP’s crash test results (pictured), with impressive scores in all areas of their assessments. In particular, the Ranger’s 81% pedestrian score is the highest score recorded for pick-
ups tested by Euro NCAP so far and therefore sets a new standard in this area. This performance is the result of
a softer and well-engineered front end, absorbing the impact energy and better protecting pedestrians.
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Commercial Transport Nissan Van Range Grows with NV400 NISSAN’S bold plan to double its share of Europe’s LCV market within three years has been given a boost by the European debut of the NV400, its new bigger capacity van. Developed in cooperation with their alliance partner Renault, the NV400 cannot be mistaken for anything other than a Nissan. Its distinctive ‘face’ was created at Nissan Design Europe (NDE) and engineered by Nissan Technical Centre Europe. The NV400 has its own unique bonnet, front wings, headlamps with integrated daytime running lights, grille and front bumper. The result gives NV400 a rugged, assertive look that shows it means business. But Nissan point out that there’s much more to the NV400 than the way it looks. They claim it is one of the most versatile and practical heavy van ranges on the market, with gross vehicle weights ranging from 2.8t to
4.5t. For the first time, Nissan can offer the choice of front- or rear-wheel drive versions, while the NV400 comes in three wheelbase versions, four different lengths, three different heights and with cargo volumes ranging from 8-17m³. There are three power options, plus six-speed manual and robotised transmissions. From a practical perspective, the NV400 offers a far wider range The new Nissan NV400: one of the most versatile and practical heavy van ranges on the market. of model types, sizes and options than the outgoing Nissan tells us that all are Euro Interstar. Power comes from 5 compliant and enjoy lower running a direct injection, four-cylinder, 16-valve costs thanks to improved economy and turbo diesel engine that has been newly to major service intervals, which have developed by Renault. At 2.3-litres it is been extended to 40,000 kms or every smaller than Interstar’s 2.5- dCi unit, two years. yet power outputs are the same.
New Van Purchase Finance Scheme from Mercedes ABOUT THE AUTHOR
Production of the Mercedes-Benz Vito van recently passed the one million mark.
A NEW van purchase finance scheme which opens up a line of funding that would assist small businesses planning to upgrade their transport fleet has been introduced by Mercedes-Benz in Ireland. Designed to unblock the lending log-jam that has prevented many owners from acquiring or replacing their van fleet, the scheme provides finance over periods from three to five years, upon payment of a ‘modest’ deposit. Confined to the purchase of new vehicles only, the scope of the plan can also be extended to include maintenance costs. Moreover, dealers can facilitate buyers by agreeing a residual value that would be placed on each vehicle after the finance term has expired. Describing the plan as
one “mutually advantageous” to both sides, Mercedes-Benz Commercial Vehicles Sales Manager Fergus Conheady said that it will “stimulate and assist the small business sector whose progress has been blocked on all fronts by the current restrictions on lending”. Meanwhile, Mercedes-Benz are intensifying the support they give to their Vito and Sprinter vans, with the introduction of a third year warranty and 3-year service contract, both being offered through their dealer organisation. This extra cover – which applies to vans registered in January - comes in addition to the two years bumper-to-bumper unlimited mileage factory warranty provided by Mercedes-Benz.
PADRAIC Deane represents Ireland on the ‘World Car of the Year’ jury. In addition, he is the Irish juror for selection of the ‘World Green Car’, the ‘World Performance Car’, and the ‘World Car Design of the Year’. He is also in his 11th year as Ireland’s juror for the ‘International Engine of the Year Awards’, which includes the selection of the ‘Green Engine of the Year’ and The ‘Best Performance Engine of the Year’. In addition to his expansive role at Automotive Publications, he also writes syndicated consumer motoring columns weekly in many regional newspapers, as well as national newspapers and magazines.
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Paper Products
Paper Waits! The paper products sector is extremely competitive, where new product development is the key to success.
The paper products market is extremely competitive, where branded goods do battle with private label for market share and indeed, share of wallet. According to Euromonitor’s latest report into the Tissue & Hygiene sector, multinationals such as Procter & Gamble, Kimberly Clark, Georgia Pacific Ireland and SCA Hygiene Products continue to account for a significant share of the market, but the growth of private label continues as consumers become less brandconscious and increasingly opt for cheaper options. Market saturation and maturity is a problem in terms of registering growth, although there has been some value added by the development of premium products, such as moisturiser-infused tissue products, but the drive towards value has meant that more sales are occurring at the lower-cost end of the spectrum and in multi-pack and special offer packs, with discounting a common feature across this category. Future trends across the paper products sector are expected to fall along ecological lines, as consumers become more environmentally-minded and choose more recycled or reusable products, according to Euromonitor. Both branded and private label manufacturers are also expected to focus on developing more absorbent products and greater segmentation in a bid to add value to products in a saturated category.
Kimberly Clark
The focus for the Andrex brand in 2012 is to continue to delight shoppers and consumers by delivering superior products and value. “Our key product initiative in 2012 includes a fantastic new line extension to the bath tissue range in Quarter 2 – more to follow soon,” said a company spokesperson. 2012 is also a year of celebrations – it
Two top brands from Kimberly Clark: Andrex and Kleenex remain massively popular with Irish consumers.
is the 140th anniversary for KimberlyClark, the 70th anniversary for the Andrex brand, the 40th birthday of one of Ireland’s most loved icons, the Andrex puppy. “We will be developing bespoke packs and promotions with our retail partners to tie into each of these key events in Quarter 3 and support it with in-store media and digital/social media,” said the spokesperson. Also from Kimberly Clark, Kleenex is always there for cold and flu and hay fever sufferers, and will continue to provide a source of soothing comfort and support throughout these seasons. As the UK and Ireland’s number one tissue brand, Kleenex is driving category growth through innovation in 2012. With tissues a common necessity all year round, Kleenex is developing innovative new seasonal designs for the home and shaking-up the facial tissue category with a significant packaging review that will simplify the shopper experience. Other exciting news for this year is Kleenex expanding beyond facial
tissue and moving into the beauty sector, with the launch of the new and innovative Kleenex Facial Cleansing Range: watch this space!
Homestead
The Homestead paper range continues to be one of the strongest
Homestead Soft White Toilet Tissue: part of the hugely successful Homestead paper products range.
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Paper Products
Homestead Comfort 18 Roll, price flashed at €4.99: one of the success stories of the Homestead paper range in 2011.
categories within the Homestead portfolio. Sales at the end of 2011 grew by 7% in value and 10% in volume. With sales amounting to almost €4m in 2011, accounting for
nearly a quarter of overall Homestead sales in that year, the brand is truly enjoying the success of this category. The paper range, which includes a variety of toilet rolls, kitchen towels and man-size tissues, is produced to the highest quality, using 100% virgin pulp paper. The selection rivals any market leader, while remaining well priced in order to compete successfully in the private label market. Homestead Comfort 18 Roll Flashed €4.99 and the Homestead Soft 12 Roll Price Flashed €5.99 RSP, which was promoted at €4.99 RSP through 2011, were the true success stories of the Homestead paper range last year. Homestead Brand Manager,
Janice Gibney, added, “As the market becomes increasingly competitive, it is imperative that we review our pricing on a continual basis and we look forward to bringing more savings to our consumer in 2012 to ensure we continue to bring value home.”
Homestead Absorb Premium Kitchen Towels: performing extremely well across the country.
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NOffLA Off Licence Awards
NOffLA Unveils Off Licence of the Year
Winners
Redmond’s of Ranelagh has been named National Off Licence of the Year at the NOffLA Off Licence Awards. THE National Off Licence Association presented 14 Awards to off licences around the country recently, with the much sought after National Off Licence of the Year Olwen, Jimmy and Jenni Redmond, from Redmond’s Off-Licence, 2012 accolade presented to Redmond’s Off-Licence, Ranelagh, celebrate winning the National Off Licence of the Year title. Ranelagh. In addition, all 42 finalists were awarded certificates of either ‘Standard’, ‘Merit’ and ‘Excellence’, based on their OUTLET SPONSOR CATEGORY performance. O’Donovans, Cork Wyndham Estate Specialist Off Licence The awards are held by NOffLA Group of the Year 2012 annually to recognise those off licences around the country that Next Door, Sundrive Road Tiger Beer Best First Time Entrant offer exceptional service to customers 2012 and demonstrate excellence in retail standards. Samuel C. Cope Ltd Lorina Lemonade Food Retailer Off Licence According to NOffLA Chairperson, of the Year 2012 Evelyn Jones, the awards have been Martin’s Off-Licence El Coto Customer Service Award of the highest standard to date: “The standard this year really has been of the Year 2012 outstanding, particularly with regards Spirit Specialist of the Year The Wine Centre, Kilkenny Absolut Vodka to product knowledge and customer 2012 service. It hasn’t been an easy year for the industry, so our members have Budweiser Beer Specialist of the Year McHugh’s Off-Licence, really had to raise the bar and get a Malahide Road 2012 better understanding of exactly what the customer wants. It’s evident from Faustino Wine Specialist of the Year Gibneys Off-Licence the judges’ feedback that they have 2012 been doing just that.” Hennessy Cognac Munster Off Licence of the O’Donovans Off Licence The awards were held in the Riversdale S.C. Year 2012 prestigious surrounds of the Honourable Society of King’s Inns, McCambridge’s Hennessy Cognac Connaught/Ulster Off Dublin, where the 42 finalists from Licence of the Year 2012 around Ireland gathered for the final stage of the judging process, comprising Hennessy Cognac Leinster Off Licence of the Holland’s Fine Wines a blind-tasting. Year 2012 Marks were also awarded for key criteria, including overall appearance, Jus de Vine Hennessy Cognac Dublin Off Licence of the hygiene, product range, customer Year 2012 service and product knowledge. Judging Rachel Rowan Enovation Solutions RTC Online Trainee of the began in July 2011, a tough but Mulhall’s Londis Year 2012 rewarding journey for all of this year’s award winners. O’Brien’s Carry Out National Off Licence RTC Responsible Retailer “The Awards are well recognised Association of the Year 2012 by industry and by the general public, so will go a long way to demonstrating National Off Licence National Off Licence of the Redmonds Off-Licence, the quality offered by our finalists,” Ranelagh Association Year 2012 concluded Evelyn Jones.
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Market News Carte Noire Refill Pack CARTE Noire, the distinctively velvety and rich super premium coffee, has launched a new refill pack to improve sustainability and reduce packaging waste. The Carte Noire Refill Écologique packs have been specially designed to preserve Carte Noire’s smooth taste, and has 97% less packaging weight than the Carte Noire jars. The pack is available in regular blend, and is made with 100% Arabica coffee beans for rich, velvety flavours and delicious aromas.
Consumers Select New Kit Kat Chunky Flavour KIT Kat Chunky called on chocolate lovers everywhere to select a new flavour to join the range - the Kit Kat Chunky Champion. A national integrated campaign kicked off recently to ask the nation to decide which will be the next permanent Kit Kat Chunky flavour, with four limited edition flavours competing – Orange, White Choc, Double Choc and Peanut Butter. The public were encouraged to try each one before casting their vote for their favourite flavour on www.facebook.com/kitkatuk, with the winning Kit Kat Chunky flavour securing a place on the Irish market! The €500,000 media support campaign included TV, radio, outdoor, PR and digital activity.
The Powerfruit Shower Experience CONSUMERS can discover the combination of superfruits and pampering care with the new Powerfruits range from NIVEA. Superfruits have been part of the global healthy eating trend over the last couple of years. Juiced, sprinkled over cereals or enjoyed pure, superfruits such as acai, goji, blueberry and cranberry provide our bodies with lots of beneficial protective and vital substances. That’s why together with its skin care competence, NIVEA has created a new shower range which includes superfruit extracts and pampering ingredients with Hydra IQ so your skin feels beautifully cared for. Supported by PR and online activity, the new range includes NIVEA Shower Powerfruit Refresh and NIVEA Shower Powerfruit Relax.
Golden Virginia Yellow
Philadelphia with Cadbury
TO accommodate evolving consumer needs, early 2012 sees Golden Virginia Yellow re-inventing itself by offering RYO consumers an even smoother, more aromatic blend. Building upon the strong heritage and success of the Golden Virginia brand, RYO smokers will find the enhanced Golden Virginia Yellow a very suitable alternative within the RYO portfolio. The brand continues growing, and the new aromatic blend will surely help Golden Virginia Yellow maintain this growth trend. The Golden Virginia brand comprises 24.1% share of the total RYO market, and with the introduction of Golden Virginia Yellow, one in four RYO consumers now choose a Golden Virginia brand.
PHILADELPHIA and Cadbury have teamed up to create a unique and delicious new chilled chocolate spread. Philadelphia with Cadbury blends Philadelphia Light with the delicious taste of Cadbury chocolate for a fresh-tasting, light-textured chocolate spread with just 86 calories per serving. It represents one of Kraft Foods’ biggest cross-category innovations, adding yet another aspect to Philadelphia’s versatility as a spread and recipe ingredient and offering the brand new growth opportunities outside its traditional soft white cheese category. The launch of Philadelphia with Cadbury is supported by a full through-the-line campaign, featuring PR, TV, outdoor, press, digital and in-store activations. See www.philadelphia.ie for more information.
Coors Light Reaches New Peaks in 2012 COORS Light is now the number four lager brand nationally and is still experiencing consistent gains in the off trade (Source: ACNielsen 2011). The beer continues to entice consumers through its Cold Rocky Mountain Refreshment and exciting marketing support platforms, such as the thermochromic can (pictured). The new Coors Light can features the Rocky Mountains icon which, when blue, indicates to consumers that the beer is Rocky Mountain cold and ready to drink. The new can is part of a much broader refresh for the off trade which includes a sleek new look and feel for all Coors Light packaging.
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Market News Creme Egg Season 2012 THIS year, Cadbury Creme Egg will celebrate Cadbury’s London 2012 Olympic and Paralympic Games Sponsorship with a €700,000 integrated marketing campaign. The campaign, running from January to April 2012, will feature digital, TV, outdoor, consumer promotions, PR and experiential activation. Launched with a spectacular opening ceremony in early January, viewers are being treated to five new TV ads which are all set within the Goo arena. The Egg-thletes will compete in Hurdles, Diving, Hammer, Javelin and Track Cycling, all trying to release their Goo in the best way possible. The ad finale will end in style with a fitting closing ceremony that will finish on the week of April 2, 2012.
Blueberry Smirnoff SMIRNOFF Flavours have announced the addition of a brand new variant to their successful flavoured vodka range in the off-trade in Ireland. Blueberry Smirnoff is crafted using awardwinning triple distilled pure Smirnoff No. 21 vodka and the natural flavour of blueberries. The launch follows a successful trial and roll-out of Blueberry Smirnoff in the UK and is to be supported by an all-island outdoor, press, digital and sampling campaign, which will champion the entire Smirnoff flavoured vodka range, including Lime Smirnoff and Green Apple Smirnoff. Blueberry Smirnoff will be available in 70cl format throughout the Republic of Ireland and Northern Ireland from February 2012.
Firm Up with NIVEA Q10 Plus! NIVEA has announced the addition of the new NIVEA Firming Body Oil Q10 Plus to its much loved Q10 bodycare range. This new addition with Q10 and avocado oil is easily absorbed and can be used all over the body to firm and care for the skin, improving its natural beauty. Working in harmony with skin, the powerful formula delivers excellent results, including: firm skin in just two weeks; intensively moisturises the skin; soft skin feeling while massaging skin imperfections such as stretch marks. This innovative product will be supported with a heavyweight print, online and PR campaign.
Whiskas Tasty Textures BITE ‘n Chew MARS Petcare is adding to its market leading Whiskas brand with the introduction of a new pouch subrange: Whiskas Tasty Textures BITE ‘n Chew. Cats love to bite & chew their food, so Whiskas is introducing this range, which is packed full of roughly chopped meaty pieces in a soft meaty paté background for maximum bite and chew satisfaction. With three multipack varieties available (Mixed Meat & Fish Recipes, Meat Recipes & Fish Recipes) and one single Chicken recipe pouch, Tasty Textures has something to satisfy all cats and their owners. Whiskas Tasty Textures BITE ‘n Chew will be strongly supported in 2012 with a strong through-the-line campaign, including heavyweight TV, PR, sampling and promotions..
New Aero Bar Design FROM February, Nestlé Confectionery are reshaping the confectionery impulse category with the launch of the new Aero Bubbly Bar. Engineered to improve the Aero experience for the iconic brand’s many fans, the new design replaces the current Aero Milk Medium and Aero Peppermint Medium bars. As well as offering a unique bar design, the new design sees the bar divided into ten easily snappable ‘bubbles’, making it less messy to eat and more portionable for sharing. What’s more, each of the ten ‘bubbles’ are designed to fit against the roof of the mouth, making for a much easier melt, which maximises the taste of Aero’s signature bubbly chocolate. As well as offering the Milk and Peppermint Aero bars with the new design, Nestlé Confectionery is also launching a limited edition Aero Orange Bubbly Bar for 12 weeks only!
High Definition Skincare from NIVEA Visage CONSUMERS can get ready for high definition skincare with Q10 Plus Anti-Wrinkle Pore Refining Day Cream, the latest addition to the NIVEA Visage Q10 range. NIVEA Visage Q10 Plus Anti-Wrinkle Pore Refining Day Cream helps reduce the size of pores caused by oily skin to create a more refined complexion, whilst still battling the first signs of ageing. The multi-benefit formula contains Seaweed Extract, Creatine and powerful antioxidant Coenzyme Q10. Creatine is an amino acid derivative which stimulates the energy metabolism and acts as an energy store. Creatine and Coenzyme Q10 work together to support the skin’s natural regeneration process by rejuvenating and revitalising skin cells like never before. Finally, the added SPF 15 helps protect skin against sun induced damage. The launch of this innovative new product will be supported with a heavyweight print, online, experiential and PR campaign.
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Shelf Life
APRIL 27 & 28 sees the Ulster Bank Irish Franchise Association EXPO and Awards taking place at the RDS, Dublin. With an unrivalled series of seminars and exhibitors, this event is an opportunity for people to access and avail of real time information on franchising that normally takes months of painstaking research. The Irish Franchise Awards, which will run in conjunction with the exhibition, recognise excellence in franchising and reward the outstanding achievements of businesses and individuals engaged in the franchise industry. Pictured are: Anita O Neill, Area Manager, Commercial Banking, Central Dublin; Tom Shanahan Executive Director of The Irish Franchise Association; Orna Stokes, Senior Manager, SME & Franchising, Ulster Bank; and David Killeen, Chairman of The Irish Franchise Association. See www.irishfranchiseassociation.com for more information. CLONAKILTY Blackpudding has been announced as the premier club partner for Airtricity Division One Champions Cork City FC. The three-year sponsorship agreement will see the Cork company have its distinctive logo displayed on the new Cork City FC home and away strips for the 2012 Airtricity Premier Division. PANINI UK have launched Disney Club Penguin Magazine, which hit the shelves on February 9. This four-weekly magazine is based on the hit virtual world for kids, Disney Club Penguin. Aimed at children aged 7-11, this 36-page publication extends the colourful online playground onto print with richly-illustrated comic stories, fact files, puzzles and activities themed on popular in-world games and events. The snow-capped online community has seen over 150m penguins created in more than 190 countries, proving its renowned popularity. Disney Club Penguin Magazine will further expand on the success of the fun and dynamic virtual world, offering comic stories with well-loved characters, a chance to win complementary Club Penguin memberships and interviews with famous penguin icons. Kids will be delighted with a free Club Penguin cover-mount every issue, plus secret codes that can be cashed in online every month.
BALLYMALOE Country Relish has announced its first ever TV sponsorship deal by teaming up with the popular hospitality series At Your Service, which is broadcast Sundays at 8:30pm on RTÉ One. This eight-part series follows expert hoteliers John and Francis as they visit hotels, guesthouses and B&Bs; where they’re required to use their vast knowledge to bring new life to these businesses. It has proven very popular with viewers, with the last series garnering an average of 530,000 viewers, who tuned in every week to watch the Brennan brothers work their magic. BEAM Inc. has entered into an agreement to purchase Cooley Distillery, the award-winning independent Irish whiskey producer. The purchase price is approximately $95m on a debt-free basis. Cooley currently sells approximately 250,000 9-litre cases per year – divided among its brands, private label products and bulk sales to third-party customers. “The renaissance in Irish whiskey, most evident in the United States, is now spreading across the world,” said John Teeling, Chairman and Founder of Cooley Distillery. “Through Beam, our brands, built on quality, will be introduced to a host of new consumers. I am certain that the marriage between Cooley and Beam will benefit all.” TOP Champagne house Moët & Chandon added some extra sparkle, glamour and bubbles to this year’s Irish Film & Television Awards as the official Green Room sponsor. The Moët & Chandon Green Room played host to an array of Irish and international film and TV stars on the night. Moët & Chandon has been the official champagne of the Golden Globe Awards for almost two decades with celebrities including Kate Winslet, Brad Pitt, George Clooney and our very own Michael Fassbender (pictured) among the many high profile names who attended this year’s event. A NEW Irish-designed dual purpose bag holder and advertising stand, called Bagsitt, has being unveiled. According to its Dublin-based inventor, Jill Aston (pictured), Bagsitt’s patented tamperproof clips keep customers’ bags safe, clean and on-view at all times, while the advertising space at the top of each Bagsitt stand can generate new advertising revenue for venue owners or can be used to maximise awareness of in-house special offers or services. See www.bagsitt.com for more information. IN its 25th Anniversary year, Tipperary Natural Mineral Water scooped three international gold medals at the British Bottlers Institute Awards in London, bringing the total since 1989 to an impressive 10 golds. Tipperary Water won the three awards in the ‘Natural Mineral Water Blind Tasting Class’: Gold Medal, Class A – Tipperary Natural Mineral Water – Still; Gold Medal, Class B – Tipperary Natural Mineral Water– Sparkling; Gold Medal, Class E– Tipperary Flavoured Water – Peach. Pictured are Ed Binstead, BBI President; Peter Cooney, Manager, Tipperary Water Cooler Division; and Wyllie Woodburn, BBI National Chairman. CONGRATULATIONS to Envirolec, who won three months’ free online advertising on the Retail News website: www.retailnews.ie.
quality seafood
quality service
www.seafoodcircle.ie
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News
Retailers Fuming over Government Reports on Alcohol Sales A GOVERNMENT report calling for retail restrictions on alcohol sales neglected to include crucial information about alcohol consumption, R etail N ews can reveal. As part of the two year consultation process for the National Substance Misuse Strategy Steering Group, the Alcohol Beverage Federation of Ireland (ABFI) submitted statistical data showing that average alcohol consumption per person in Ireland had fallen 17% from its 2001 peak. Yet the report, titled Estimates of Average Adult Alcohol Consumption 2001-2011, was not included as part of the Steering Group’s findings. “We participated in good faith for a period of two years, during which time our recommendations were addressed,” Kathryn D’Arcy, ABFI Director, told Retail News. “At the end of the process, particularly after the last meeting, we felt the report did not adequately
Kathryn D’Arcy, Director, Alcohol Beverage Federation of Ireland
reflect our concerns and we issued a minority report. That wasn’t included. We would have thought, as participants of the group, we were entitled to have our minority views recorded. It’s a missed opportunity. We would have liked to see the strategy investigate the impact of our findings. What are the results of this fall in alcohol consumption?” Frank Gleeson, Chairman of Retail Ireland, said the Strategy Group report had another glaring omission: the voice of retailers. “Retailers, who are probably selling the majority of this product, weren’t even consulted,” he said. “We need to be involved in discussion because we can help with some of the solutions, particularly in regard to the management of how alcohol is sold. We sell a legal product. When we don’t sell it responsibly, actions can be taken by the public and Gardaí to ensure a retailer loses his license. In 99% of cases, retailers sell alcohol responsibly.” The Steering Group’s report, published on February 7, issued a number of recommendations. These included an increase in the price of alcohol, an introduction of minimum pricing legislation, and the introduction of statutory codes (under Section 9 of the Intoxicating Liquor Act 2008) to ensure the structural separation of alcohol in supermarkets. “The Steering Group took note of the shift in the pattern of alcohol purchasing from
the pub to the off-licence sector, and to supermarkets in particular,” said Dr Tony Holohan, Chief Medical Officer and Chairman of the Group. “We can’t ignore the impact of this on alcohol consumption, given that there was a 161% increase in the number of off-licences operating between 1998 and 2010...” The report came on foot of the Report on the Misuse of Alcohol and Other Drugs, from the Oireachtas Joint Committee on Health and Children, published in January. Both reports shared many of the same recommendations. However, the Oireachtas Committee went a step further, calling for an outright ban on the sale of alcohol in supermarkets and garages. “It’s absolutely ridiculous,” said Frank Gleeson. “To ban the sale of a legal product in retail stores of any type would absolutely be the wrong thing to do. The industry is well regulated and there is no evidence to suggest that supermarkets, convenience stores or forecourts are irresponsibly selling alcohol. Retail has been blamed for the nation’s problems. The reality is that this is a societal issue. While a lot of recommendations in the report should absolutely be implemented, trying to stop the sale of alcohol won’t fix it.” Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), added: “This is a recommendation
that could never see the light of day in terms of legislation. You can not, retrospectively, affect an entire section of the business community, saying you can no longer do something that you were licensed to do. You can do it for the individual who has broken the law. You can make it more difficult for people to apply for licenses. But you can not retrospectively revoke someone’s license.”
Vincent Jennings, CEO, CSNA. There appears to be many vested interests involved. Health groups are concerned about alcohol misuse. Vintners, who have seen a fall-off of drink sales in pubs, welcome restrictions on retail sales of alcohol. However, the voice of consumers - the vast amount of moderate drinkers in Ireland - is not included as part of the government recommendations. “There is a much wider issue as to whether or not the sins of the few should be become punishment of the many,” said Jennings. “A ban on alcohol at retail will make it more difficult for
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News the moderate drinker to purchase alcohol, which they have every right to do if they are over 18. And which, when consumed in moderation, causes no damage to the health of the nation,” said D’Arcy. Indeed, ABFI called for a re-introduction of the ban on below cost selling, as a “more effective” means of addressing the sale of cheap alcohol: “It was effective for a number of years under the Groceries Order. At the time, when they decided to remove it, we went on the record saying that alcohol should not be included in the removal of the ban, because it could be used by retailers as a loss-leader. Sure enough,
alcohol was used to drive footfall in certain retail outlets.” What happens next? Minister of State for Health, Róisín Shortall TD, intends to bring the recommendations to the attention of the Oireachtas Joint Committee on Health and Children, a spokesperson for the department told R etail News. “Following that, I’m sure the Joint Committee’s recommendations will be taken into consideration. Then an action plan will be bought to Government.” Was there collaboration between the groups in preparing the reports? “No, they are separate entities.” Jennings said that recommendations may face obstacles in becoming policy. He cited European challenges to proposals by the Scottish Parliament to
introduce minimum pricing on alcohol. Minister Shortall is also pursuing a crossborder strategy in regard to minimum pricing, which has been largely welcomed by retail groups. Ultimately, concerned parties are approaching the issue in the wrong way, retail groups argued. Antisocial behaviour, or alcohol misuse, can not be pinned onto the convenience or garage sector, said Jennings. “Dr Tony Holohan referred to the successes we’ve had with regard to drink driving,” continued D’Arcy. “He’s right. Within a generation, we’ve changed the way people think about getting into a car and drinking. With some serious interventions at a very young age, some significant education and community intervention, we can change the way we consider the
Frank Gleeson, Retail Ireland Chairman. culture of alcohol misuse in Ireland.” Frank Gleeson concluded: “It’s the consumption or misuse of alcohol that’s the issue: not the sale of alcohol. That’s what missing from these reports: they don’t put that upfront. This is not about the sale of alcohol; it’s about the misuse of alcohol by a minority of people.”
BWG Upgrades Customer Service Systems BWG Foods are upgrading their customer service management systems to Microsoft Dynamics CRM 2011, representing a €300,000 investment. “The economic downturn has highlighted the importance of maintaining good relationships with retail partners and improving customer loyalty by providing verified levels of service,” said Willie O’Byrne, Managing Director, BWG Foods. “Microsoft Dynamics offers BWG Foods streamlining resolution to retailer queries right across our estate of 900 stores, enabling us to improve customer service and responsiveness. We’re very satisfied with the outcome to date and we’re enthusiastic about the potential to continually improve lines of communication between the company and our customers right across the business.” Veronica Sullivan, Head of IT at BWG Foods, added: “We were looking for a well established CRM platform that would be fit-for-purpose in managing increasing volumes of key customer information, so it needed to be flexible. The fact that Microsoft’s implementation partner, iSite, had experience of the retail industry and a good understanding of our business model was a major plus for us. The familiarity of the Microsoft interface has lowered the learning curve for staff and by the end of the implementation, we would envisage nearly all customerfacing staff will be using CRM on a daily basis.” Meanwhile, BWG Group, have announced Willie O’Byrne, Managing Director, BWG Foods; Karl O’Leary, Microsoft Dynamics Lead in Ireland; the appointment of Stewart Harrington as a NonDave Muldoon, CEO, iSite; and Veronica Sullivan, Head of IT at BWG Foods. Executive Director.
Pictured are Aidan Cotter, CEO, Bord Bia; Simon Coveney TD, Minister for Agriculture, Food and the Marine; and Shane Dempsey, Head of Consumer Foods, FDII.
Bord Bia Launch Mentoring Programme A NEW structured mentoring initiative where the expertise of leading indigenous food and drink companies will be shared with small food firms was launched at Bord Bia’s Small Business Open Day. The mentoring programme will be coordinated by Bord Bia in cooperation with FDII (Food and Drink Industry Ireland). Over 120 food companies gathered in the Crowne Plaza Hotel, Blanchardstown, Dublin, to hear how global food and drink companies such as Glanbia, Nestlé, Coca-Cola, Kepak, Bulmers and Kraft will offer their advice and expertise to small food firms in the key areas of business strategy, account management and logistics. Bord Bia works with over 400 small food businesses with an annual turnover of some €400m where approximately 3,000 people are directly employed in the sector. .
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Tesco, SuperValu and Dunnes Outperform Market
THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending January 22,
2012, show a fall in growth to just 0.2%, following a strong Christmas trading period, which saw growth of 1%.
SuperValu (20.1%), Dunnes (23.4%) and Tesco (28.2%) all performed ahead of the market, with the latter posting its highest ever share. “Tesco is setting the pace among the big three grocery retailers in Ireland, posting growth of 2.8% and lifting its share from 27.5% a year ago to 28.2% now,” noted David Berry, Commercial Director at Kantar Worldpanel. “This record high, which has been driven by the opening of new stores, is particularly pleasing for the retailer, considering its recent drop in share of the British market. Customers now have more opportunities to shop with the company and this has
helped the growth of Tesco’s share in the market.” Elsewhere, Aldi continues to post the highest growth rate among all retailers with sales growth of 26.2%, the 15th consecutive period that Aldi has grown by more than 20%. However, the gap between market growth and the 3.3% food inflation rate indicates that shoppers are continuing to cut back. “Consumers are managing their budgets by shopping more frequently but buying less per trip,” Berry notes. “The cost of the average shopping basket is now down to just €23.61 from €24.78 for the same period last year.”
Boyne Valley Group Buys Premier Brands BOYNE Valley Group has acquired the Irish brands of Premier Foods: McDonnells, Chivers, Erin and Gateaux. “These brands are complementary to Boyne Valley’s current portfolio where it has market-leading positions in honey, olive oil, peanut butter, home baking, condiments and household products,” said a company statement.
Retail Lettings Looking Up AFTER a prolonged period of market stagnation, 2011 saw a significant increase in lettings activity in the retail sector, according to the annual review of the property market from chartered surveyors, Lisney. As to be expected, discount retailers are trading very well and competition in this sector has accelerated significantly, with many new UK entrants to the market and existing domestic retailers expanding. The number of available retail units on prime high streets and in key shopping centres diminished during 2011 and very little vacancy now exists in prime Dublin shopping centres. The current level of overseas enquiries in the retail market suggests that the increased market activity experience in 2011 will continue in 2012. Most individual landlords are very aware of the challenging times and as such, have become pragmatic in their dealings with tenants, according to Lisney, who further believe that the new international retailers entering the Irish market will continue to take a long-term view of Ireland as a location for opportunity. However, the fate of the commercial investment market was not so positive, with the uncertainty surrounding upwards only rent reviews and the lack of finance causing a complete standstill, with total investment turnover for the year only amounting to €200m.
New CEO at Topaz JOHN Williamson has been appointed as the new Chief Executive of Topaz, following the resignation of Eddie O’Brien, who has taken up a senior position with DCC. Formerly Chief Financial Officer at the company, John Williamson joined Topaz in 2009, having previously worked as Chief Financial Officer of Payzone plc. “This is a fantastic company to work for and it’s a great honour to be appointed as Chief Executive,” said Williamson. “I’m particularly conscious of the strength in depth of our senior management team and I look forward to working with them in the coming years to bring this company on from strength to strength.”
New Topaz CEO John Williamson is pictured with Chairman Neil O’Leary.
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XL Store of the Year DUNLEAVY’S XL store in Portsalon, Co. Donegal, has been named XL Store of the Year 2011 at the national awards, held recently at the Mullingar Park Hotel, Co. Westmeath. The store, run by Nigel Carr, also picked up the award for Best Off-Licence, sponsored by BWG Wines & Spirits. “We are delighted to have received this award. Being part of the XL Awards is good for our store as it drives us to work towards delivering good value and service to our customers. Most importantly, it is recognition for our hard working members of staff,” said Nigel Carr. This year saw over 150 XL stores from across the country take part in the awards programme, which saw no fewer than 23 category winners. “In a short space of time, these Awards have become an integral part of the annual XL calendar,” said John Moane, Wholesale Managing Director, BWG Foods (operators of the XL brand). “Our retailers are passionate about participating in the initiative because they recognise the importance of raising store standards for their customers as well as for the development of the XL brand.”
Pictured are (l-r): Colm Fitzsimons; National XL Business Development Manager; Willie O’Byrne; Managing Director, BWG Foods; Nigel Carr; Store Manager, Dunleavy’s XL, winner of the XL Store of the Year; Thomas McAree, XL Development Manager; and John Moane, Wholesale Managing Director, BWG Foods.
GALA OPENS IN LUCAN A NEW Gala convenience store has been officially opened at Rosse Court Square, Lucan, Co. Dublin, by proprietors, brothers Paul and Alan Whitty, creating up to seven full-time and four part-time jobs for the local community. Pictured are (l-r): Jerry McDonnell, National Sales Manager, Gala Retail Services Ltd; store owners Paul and Alan Whitty; special guest Mr Tayto; Olivia Kenny, Padraic Tuffy Ltd; and Paddy Conway, Business Development, Padraic Tuffy Ltd.
Ireland Open for Business
OVER 520 food buyers from 28 countries across four continents, gathered at Dublin’s Convention Centre for Marketplace International 2012, a major one-day business development event organised by Bord Bia. Some 177 Irish food and drink companies, ranging in size and profile from small enterprises to multinationals, met with targeted buyers during 4,500 pre-scheduled ‘speed-dating’ style meetings throughout the day. The trade buyers, with a collective buying power in excess of €18 billion, represent some of the world’s key retail and foodservice operators, including Sainsburys, Selfridges, Tesco, Asda, Carrefour, Delhaize (Belgium), Mercadona (Spain) and Alcampo (Spain). In addition to a strong representation of UK and European buyers, 14 representatives from leading Chinese retail and foodservice companies travelled to the event; while 17 buyers from the Middle East and 12 from Russia also attended. Michael Carey, Chairman of Bord Bia, emphasised the Irish food industry’s readiness and capability to seek out new market opportunities and broaden their export reach: “This is an industry
Minister for Agriculture, Food and the Marine, Simon Coveney TD, is pictured (centre) with Bord Bia Chairman, Michael Carey, and Aidan Cotter, Chief Executive, Bord Bia, and some of the international buyers at Marketplace International 2012. where world-class commitments to quality and food safety are routine… and an industry that has achieved double-digit growth in its exports over the last two years. Today marks the culmination of 12 months planning, preparation and training and that combined with our theme of ‘Ireland, Partners in Growth’ will leave our visiting buyers in no doubt that we are here to do business.”
Appointment at Retail Ireland STEPHEN Lynam (pictured) has been appointed Director of Retail Ireland, the national representative body for the entire retail sector. It represents Irish and international department stores, DIY, electrical
retailers, fashion and footwear retailers, major supermarket groups, symbol groups and a range of specialist retailers. Stephen is a former senior executive with the Alcohol Beverage Federation of Ireland and is
a former policy officer in the Office of the Leader of Fine Gael in Leinster House. He holds a Masters in Journalism from DCU and a Bachelors Degree in English Literature and Sociology from Trinity College.