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.
The Cloven Hoof of the Law? THE recent six-year sentence handed down to Paul Begley for evading €1.6m in import tax on garlic from China is one of the most draconian and baffling court decisions in the history of the State. Paul Begley of Begley Brothers Ltd, one of the country’s largest fruit and vegetable importers, evaded much of the customs duty due on over 1,000 tonnes of garlic from China by having them labelled as apples. The import duty on garlic can be over 200%, compared to just 9% for apples. Begley admitted his wrongdoing, and had agreed to repay the full debt, along with any fines incurred. Indeed, he has already been repaying the money, with certain reports estimating that it now stands at €700,000. Despite this, however, Judge Martin Nolan, while describing Begley as “an asset to the country” and stating how “it gives me no joy at all to jail a decent man”, still imposed a six-year prison sentence, an equivalent time in jail to many manslaughter sentences. A drug dealer who is caught in possession of drugs with a street value of €13,000 or more for sale or supply can be handed down a sentence of as little as five years, as can be seen on the Irish Sentencing Information System (www.irishsentencing.ie), and it is doubtful whether any of our fat cat bankers, who fiddled the books while Ireland continues to burn, will ever see the inside of a prison cell. I’d like to make it clear that neither I nor anybody else at Retail News condones what Begley did. He broke the law and has to pay: end of story. But when we read every week about the miniscule sentences handed down to killers, rapists and drug dealers, Paul Begley’s six years sounds like a very long time, and one which will cost the taxpayer. Surely a community service sentence would have been more appropriate and more beneficial.
17 Win a luxury weekend break in Galway, courtesy of Michelle Thornton Hotel Solutions and Retail News.
Credit Card Costs Hit Retailers; Alcohol Price Proposals Meet EU Approval; Topaz Launch Fuel Card. Concern Over the Return of JLC System; SuperValu Launch €20m Own Brand Range.
18 Retail News Interview
18 The National Lottery celebrated its 25th anniversary in Ireland on March 22. Chief Executive Dermot Griffin talks us through the highlights of the last quarter of a century.
Low Growth Rate for Grocery; John Pearson to Retire from Edward Dillon; Nestlé Ireland Removes Artificial Ingredients from Entire Range. Stonehouse Hosts National Foodservice Trade Show; Minister Meets Retailers Against Smuggling; Ulster Bank Business Achievers Awards.
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Centra National Conference Conference saw some big announcements by the group, including the creation of 150 new jobs this year, while Centra stores in Naas, Ennis and Dublin scooped the top awards at the recent Centra Store of the Year Awards.
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4|Retail News|March 2012|www.retailnews.ie
Credit Card Costs Hit Retailers RETAILERS in Ireland could face an estimated €10m increase in costs when accepting payments for credit and debit cards. The high price of interchange fees, paid by the retailer to a cardholder’s issuing bank, were highlighted at a recent retail summit in Dublin, attended by BWG and other representatives from the grocery sector. Over the last few months in Ireland, major card issuing banks have begun phasing out the domestic laser scheme in favour of debit cards. However, it could come at double the cost for retailers. CMS Payments Intelligence (CMS PI), who provide consultancy and software solutions for facilitating payments, hosted the Dublin summit. “The interchange fee for Laser is around 5.08c,” Elley Frost, Managing Director of CMS PI, told Retail News. “The large banks are now starting to issue debit cards and we’re seeing a massive jump from 5.08c to 10c: a cost that is passed directly to the retailer.”
Generally, a flat fee is applied to debit card transactions, whereas a percentage charge is applied to credit card transactions. Retailers are not warned about this increase in charges, added Frost. “The interchange is set between the schemes, Visa and MasterCard in this case, and the issuing banks, without any thought or conversation with the retailers. The retailers are hit for a double interchange charge.” A representative for the Irish Payment Services Organisation (IPSO) told Retail News that retailer fees are negotiated between acquiring banks and retailers. “It is important that retailers shop around for acceptance arrangements that best fit their needs,” said the IPSO spokesperson. “With regard to a doubling of costs for accepting cards, this would depend on the acquirer/retailer agreement and highlights the importance of shopping around.” A Visa spokesperson also passed the buck to banks: “Visa
Europe does not set retailer fees. This is done by the acquiring organisations. Retailer fees are negotiated by acquirers with retailers, without any involvement from Visa. In Europe, where €1 in every €7 is spent using a Visa card and more than 80% of that is on Visa Debit cards, our experience is that most acquiring organisations charge a small flat fee for debit transactions. Ultimately, retailers are free to shop around in terms of finding the best fee arrangement with acquiring organisations across Europe.” In response, Elley Frost said that while elements of the merchant service charge can be negotiated, the interchange fee is fixed. Shopping around, therefore, makes no difference. Retailers also face the problem of premium
Topaz Launch Fuel Card AA Ireland has teamed up with Topaz to provide a new discount fuel card available to all its members. The new easy to use swipe card guarantees 2 cent off a litre of petrol or diesel at any of 320 Topaz service stations nationwide. Card users won’t have to worry about carrying cash and will save money every time they fill up their tank. Pictured at the launch of the card are Conor Faughnan, Director of Policy, AA Ireland; Nicola Hudson, Senior Marketing Manager, AA Ireland; and Laura Murphy, Commercial Marketing Manager, Topaz.
cards, which carry a higher interchange fee for retailers. “The issuer can decide to offer additional rewards to their consumers, so the reference number changes to a premium card,” said Frost. “Overnight, the retailer has higher charges without forewarning.” Visa Europe said they do not offer premium interchange products.
Alcohol Price Proposals Meet EU Approval PROPOSALS to introduce a minimum price for alcohol in Ireland are compatible with European Law. A minimum price per unit was proposed under the Department of Health’s report on a National Substance Misuse Strategy - opponents of the measure argued that the move was probably illegal under EU law. However, a spokesperson for John Dalli, European Commissioner for Health and Consumer Policy, told The Irish Times recently that EU rules do not prohibit member states from setting minimum retail prices for alcohol.
www.retailnews.ie|March 2012|Retail News|5
Concern Over the Return of JLC System THE proposed reintroduction of Joint Labour Committees [JLCs] could herald new wage setting mechanisms for retail employees, Retail News can reveal. The Industrial Relations (Amendment) Bill 2011 seeks to reinstate the JLC and Employment Regulation Order [ERO] systems for determining pay and conditions for nearly 200,000 workers in the Irish economy. “It is absolutely envisaged that future EROs may set wage rates above the minimum wage level,” Ronnie Neville, Partner in the Employment Law and Benefits Group at law firm Mason Hayes & Curran, which acts for Superquinn, amongst other retail groups, told us. “The question of whether this will happen for the grocery sector, or the level of such wage rates, will depend entirely
on the consultation process and the specific matters to be considered by the JLCs, also provided for under the Bill.” Currently, after last year’s High Court decision, which deemed JLCs unconstitutional, retail employers are free to pay new employees the minimum wage of €8.65 per hour. “There’s nothing to stop an employer from reducing what was previously their standard hourly rate of pay to the minimum wage, or removing other provisions that were included in the EROs, that weren’t laid down by law, such as sick pay,” said Neville. However, retailers are concerned about the reintroduction of the employment agreements. “Since the JLCs were found unconstitutional, we have
been able to create jobs - it has eased the burden on employers and taken a lot of stress from them,” said Tara Buckley, RGDATA Director General. “We don’t believe they should be reintroduced. The roof did not fall in - this is not about scurrilous employers.” According to a spokesperson for the Department of Jobs, Enterprise & Innovation, the Bill is expected to be enacted by July. “We would anticipate that it will be end-2012 at the earliest before EROs are in place,” added the spokesperson. “The Bill can be amended at Committee Stage and Report Stage in the Dáil. The Minister has already indicated that he will be bringing forward amendments at Committee Stage. Opposition amendments have already been submitted.
Tara Buckley, RGDATA Director General. Amendments can also be introduced in the Seanad.” “We think all employers should be subject to the same employment law, whether they work in a shop that sells groceries, or a shop that sells clothes,” concluded Tara Buckley.
SuperValu Launch €20m Own Brand Range SUPERVALU have launched their new own brand range, which sees 1,500 product lines introduced across the SuperValu store network. Simply called the SuperValu Range, the new line-up represents a €20m investment for the retailer. The introduction of this new range represents the biggest product launch in SuperValu’s history, with the new products priced on average 33% less than the branded equivalent. By shopping across the SuperValu Range, and replacing their usual brand choice with the own brand equivalent, consumers can cut €45.26 off a shopping basket that would normally cost €110.35. “The SuperValu Range has been designed around the brand’s own DNA, which guarantees quality without compromise,” said Martin Kelleher, Managing Director, SuperValu. “This is a quality which we can and will guarantee, Pictured celebrating the launch of the new SuperValu Range are Síle with in excess of €1.5m spent on quality testing and Seoige and Maura Derrane at a giant size breakfast table and chairs improvement; and after all of that, if the customer is not happy in Dublin’s IFSC.
with the product we will provide a full refund.”
The new range is part of a group-wide own brand strategy from Musgrave Group, across Ireland, Northern Ireland and Great Britain, which aims to deliver one billion euro in own brand sales by 2014. The SuperValu own brand range will also be available in over 2,000 stores across Budgens and Londis in Great Britain and in SuperValu stores in Northern Ireland. As a result of the export opportunity from this own brand range expansion to Musgrave’s network in the UK, 161 jobs will potentially be created by 33 Irish food suppliers to fulfil the level of demand. Chris Martin, Group Chief Executive Officer, Musgrave Group, described the launch as “a fantastic export opportunity for our Irish suppliers as they will deliver a significant amount of our new range in Great Britain. For example, Bandon Vale, who supply us with SuperValu Cheddar, and the Brady Family, who provide us with our Own Brand repacked cooked meats, will benefit from
€2.5m and €1m in new business respectively.”
6|Retail News|March 2012|www.retailnews.ie
Low Growth Rate for Grocery THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending February 19, 2012, show growth remains low at just 0.3%, which highlights the ongoing pressure on household budgets, according to David Berry, Commercial Director at Kantar Worldpanel. “Shoppers are adopting a ‘little and often’ approach to their grocery shopping, with the number of times we visit the shops rising by 6% but the amount we spend on each trip falling by an average €1.40 per trip,” he explains. “This allows shoppers to control their spending by only buying what they need when they need it.” The latest Kantar figures see Tesco continuing to post strong results, increasing its
market share to 28.1%, up from 27.3% last year. “Despite its challenges elsewhere, Tesco has outperformed the market this month,” Berry notes. “It’s now feeling the benefit of having extra stores, giving more shoppers a chance to go through its doors and as a result is leading the big three supermarkets.” Aldi’s growth remains ahead of the competition, with sales increasing by 25% this year, lifting its share of the market to 4.5%. This growth has been achieved by a healthy combination of getting more people to shop and encouraging them to return more often. Elsewhere, SuperValu and Dunnes perform in line with the market, with sales and market share both broadly stable.
John Pearson to Retire from Edward Dillon
JOHN Pearson (pictured), Managing Director of Edward Dillon and Co. Ltd, is to retire from the Company on April 30 after 19 years’ service. He will be succeeded by Andy O’Hara, currently Commercial Director for the company. “John has been a powerful force in the shaping of Edward Dillon’s success over the past two decades,” noted Paul Haran, Chairman, Edward Dillon and Company Limited. “His exceptional commitment and unrivalled knowledge of the drinks industry have ensured that, during times of extraordinary change, the company has reinforced its leadership position in the Irish market. The clarity of vision and sense of purpose with which Edward Dillon now faces the future is testimony to John’s strong leadership of the company.”
Musgrave expressed its satisfaction with the figures for its Superquinn business. “As the Kantar figures show, there is a steady increase in market share from 5.4% in December to 5.8%,”
said a company statement. “Year on year, Superquinn market share has declined. However, this is primarily due to the closure of the Dundalk and Naas stores in 2011.”
Nestlé Ireland Removes Artificial Ingredients from Entire Range NESTLÉ Confectionery has become the first major confectioner to remove artificial colours, flavours and preservatives from its entire confectionery range. Nestlé Crunch was confirmed as the last of the 79 products to become ‘no arts’, signalling the end of extensive research and product development that started in 2005, which has seen more than 80 ingredients being replaced with alternatives. “This is a significant milestone in our 100 year history in Ireland,” said Oliver Sutherland, Country Manager, Nestlé Ireland. “Nestlé is proud to be the only major confectionery company in Ireland to be 100% free of artificial preservatives, flavours or colours across the entire portfolio. To achieve this, Nestlé Ireland and our suppliers have worked very hard, ensuring we don’t compromise and we maintain the same quality and taste of all our brands.” Concentrates of fruit, vegetables and edible plants such as carrot, hibiscus, radish safflower and lemon are a few examples of ingredients used to impart their characteristic colours and these have been used in some of Ireland’s favourite treats, such as Smarties. The changes were made in response to consumers demanding fewer artificial ingredients in their foods and a commitment by Nestlé Confectionery to find alternatives to artificial colours, flavours and preservatives. Consumer research revealed three quarters (74%) of us now look for products free from artificial additives when buying confectionery. Marcelo Melchior, Head of the Confectionery Strategic Business Unit, Nestlé said: “While pleasure will always be our priority for confectionery, a responsible approach towards our portfolio will help us to be recognised as offering the confectionery brands consumers feel good about purchasing.” Oliver Sutherland, Country Manager, Nestlé Ireland
8|Retail News|March 2012|www.retailnews.ie
News Stonehouse Hosts National Foodservice Trade Show MORE than 30 of Ireland’s largest food and drink suppliers gathered recently at Croke Park for a national trade show which was
expected to generate €2m worth of business. Organised and hosted by Stonehouse Marketing Limited, more than 500 of
Tom Shipsey, CEO, Stonehouse Marketing (centre), discusses the benefits of White Hat with customers at the recent Stonehouse Foodservice & Alcohol Tradeshow at Croke Park.
the leading independent wholesaler’s customers were invited to attend the event. The exhibition proved a key opportunity for suppliers to the foodservice industry to showcase their wares in front of potential customers in the hotel and catering business. “This is a fantastic opportunity for suppliers and buyers to come together to do business, to network and to support our indigenous industries,” noted Simon Coveney TD, Minister for Agriculture, Food and the Marine, at the event. “There is a lot of optimism in the food and drinks industry at the moment, with prospects looking very positive. We must continue to support and encourage businesses at this crucial time.” Tom Shipsey, Chief Executive, Stonehouse Marketing, was delighted with the turn-out: “Given the importance of the food and drink sector to the overall economy and the business
challenges facing our industry, I would like to take this opportunity to call on Irish people to focus on supporting indigenous suppliers and producers. Protecting Irish jobs is key in the current climate and is key to our economic recovery.” The foodservice showcase was truly a national affair, with industry representatives from all corners of Ireland in attendance. Key foodservice sector suppliers exhibiting at the event were: Barry & Fitzwilliam; Barry’s Tea; BR Foods; Britvic; Bulmers; Bunzl Catering Disposables; CocaCola; Diageo; Edward Dillon; Excellence; Findlater; Gem Pack Foods; Georgia Pacific; Gleeson Group; Heineken Ireland; Heinz; Homestead; Irish Distillers; Irish Merchants; Jacob Fruitfield; Kellogg’s; Kerry Foods; Kraft Foods; Largo Foods; Mars; Nestlé; Premier Foods; Russell Will; Shabra; Stafford Lynch; Unilever FoodSolutions; Valeo Foods; White Hat.
Minister Meets Retailers Against Smuggling MINISTER for Small Business, John Perry TD has met with a delegation from Retailers Against Smuggling (RAS) as part of Minister Perry’s ongoing dialogue to consult and interact with the small business community across all sectors throughout Ireland. During the meeting, the Minister commended RAS on their work and their aim to generate widescale awareness of the issue of tobacco smuggling in Ireland. The delegation, including Benny Gilsenan and Richard
Brophy, raised the concerns of their members in relation to the growth of the illicit trade in Ireland and the negative knock-on effects that this hidden economy is having on small businesses around Ireland. Responding to these concerns, Minister Perry invited RAS to become part of the consultative process on this issue and invited them to make a presentation to the Advisory Group for Small Business.
Ulster Bank Business Achievers Awards
FOUR leading agri-food businesses have been announced as winners of the Agriculture, Food & Drink Award in the provincial finals of the 2011 Ulster Bank Business Achievers Awards. The four companies, Galway Bay Seafoods from Connacht, Hogan’s Farm from Leinster, Clonakilty Blackpudding from Munster and Crossgar Foodservice from Ulster, will go head-to-head for the Agriculture, Food & Drink Award at the all-island final in April. Over 370 businesses from the island of Ireland entered this year’s awards, which recognise and reward business success, regardless of business product, service, size or sector.
Pictured at the Munster final of the Ulster Bank Business Achievers Awards were Louise Murphy and Collette Twomey, Clonakilty Blackpudding, winner of the Agriculture, Food & Drink Award, and Tom Leahy, Regional Director, Ulster Bank.
*Source: AC Nielsen Multiples 29th January 2012
10|Retail News|March 2012|www.retailnews.ie
Industry News Topaz Wins Best Workplace Award TOPAZ has been recognised as one of the Best Workplaces in Ireland for the fifth year in a row. This year, Topaz claimed 11th place in a list of the Best Large Workplaces in Ireland 2012 and also won the Great Place to Work Team award, the top employee engagement award. “We are thrilled to be recognised for the fifth year in a row as one of the Best Large Workplaces in Ireland,” said Paul Candon, Marketing and Corporate Services Director at Topaz, pictured (right) with Cathal Divilly, Managing Director, Great Places to Work; Minister for Jobs, Enterprise and Innovation, Richard Bruton TD; Aoife Ni Mhurchu and Kendra Ryan from Topaz. Microsoft was named as the Best Large Company to work for, followed by Google Ireland, EMC Information Systems, McDonald’s Restaurants of Ireland and Pepsico, while DocMorris received a special recognition award.
Blue Dragon Celebrates Chinese New Year NAMED after the Chinese symbol of good fortune, Blue Dragon is an expert in Asian cuisine, with over 30 years’ experience of making great tasting products. From convenient stir-fry sachets, coconut milk and sweet chilli dipping sauces to versatile Stir Fry Shots that will satisfy all taste buds and convenient Cooking Sauces that are full of flavour, Blue Dragon products add a delicious oriental taste to any meat, chicken, fish or vegetable dish. Pictured at sampling events to celebrate the Year of the Dragon and promote Blue Dragon as a healthy yet tasty range for all the family are (l-r): Aisling Durcan from Blue Dragon; Stephen Sherlock, Assistant Manager, Superquinn Lucan; William Rochford, MD, BR Marketing, distributors of Blue Dragon in Ireland; and Jacques Thudichum, Superquinn Buyer.
NDC & Kerrygold Co-Sponsor Quality Milk Awards THE National Dairy Council and The Irish Dairy Board, through its Kerrygold brand, have entered into a co-sponsorship agreement to run a national competition which sets out to identify and reward our top dairy farmers. The NDC & Kerrygold Quality Milk Awards will continue the ethos of the already wellestablished competition. See www.qualitymilkawards.ie for more information. Meanwhile, almost 500 secondary schools from all around the country have entered this year’s NDC Milk It! Advertising Awards, which challenges students to set up their own ‘advertising agency’ and to work with a brief and guidelines to help them research, design and plan an advertising campaign aimed at encouraging their teenage peers to meet their recommended daily intake from the ‘milk, cheese and yogurt group’.
JMOB Stumps Up for Sport
CRICKET Ireland has unveiled Johnston Mooney & O’Brien as the official baked goods supplier to the Irish Cricket team. Welcoming the announcement were Irish cricket stars Trent Johnston, John Mooney and Kevin O’Brien, who, as well as being widely regarded as three of Ireland’s finest cricketers, also share a namesake with the famous Irish brand. “It is great to have the support of Johnston Mooney & O’Brien – a name that is familiar in my home and many other homes around the country. They have a great tradition in Ireland and I’m delighted to be welcoming them into the Irish cricket family,” said former Irish captain Trent Johnston. “We look forward to showing the team our unwavering support throughout the 2012 season and wish them every success going forward,” said John Rooney, Managing Director at Johnston Mooney & O’Brien, pictured with the Irish players.
Appointment at Payzone
PAYZONE has announced the appointment of Aideen McCracken to the position of Director of New Business. The appointment comes as the company looks to build on its existing position in the Irish payments market and to further extend its solutions across the private and public sectors. Aideen will be primarily focused on promoting and introducing Payzone’s multi-channel payments technology across new sectors and establishing strategic partnerships for the company that will drive new business growth.
NEW €1 Toffypops Price Marked Packs
...now ready for take off
g n i y l f They’ll be s e v l e h off s Toffypops is one of Ireland’s most popular Children’s brands Toffypops is Burton’s Food’s top selling brand in Ireland Toffypops has increased by 25% YTD in terms of volume sales*
They don’t hang around long! * Source: Flanagans Sales and Marketing
12|Retail News|March 2012|www.retailnews.ie
Industry News Knorr Shakes Up Coronation Street A SERIOUS contender to Betty’s Hotpot is about to hit The Rover’s Return Pub, as Knorr Season + Shake sponsors Coronation Street on TV3. With almost 3.6m Irish viewers tuning in over the last year, it is easy to see why it is consistently in TV3’s top 3 performing programmes. Knorr Season + Shake sponsoring Coronation Street is a perfect opportunity to showcase a number of new exciting varieties, and the quirky TV promotional advertisements will add a fun twist to viewing. “We are very excited about our sponsorship of Coronation Street on TV3,” said Grace Morgan, Brand Manager from Knorr. “The new range of Knorr Season + Shake is so versatile and quick, perfect for tasty meals for busy families.”
Great Year for Glanbia GLANBIA plc has announced its results for the full year ended December 31, 2011, with revenue increasing by 26.2% to €2.7 billion, while adjusted earnings per share grew by 26.7%. Highlights included a strong performance by Global Nutritionals, with organic revenue growth well ahead of market growth rates, and a good performance by Dairy Ireland underpinned by positive global dairy markets. Describing the 2011 results as “excellent”, John Moloney, Group Managing Director,
noted that he expected the operating environment in 2012 to be more challenging than in recent years: “Current global economic uncertainty has the potential to impact on global dairy markets and fragile consumer confidence. The Group’s focus on driving growth in nutritionals, combined with deep dairy market expertise and strong execution capability, position us well for the future. Our guidance for 2012 is for 5-7% growth in adjusted earnings per share, on a constant currency basis.”
Over 2m Coffees Sold Through Bewley’s/MACE MORE than two million cups of Bewley’s fair-trade coffee have been purchased in 120 MACE stores in the 12 months since the two companies entered into an agreement to sell Fairtrade coffee exclusively. The two companies teamed up again this year, urging consumers to “Take a Step” to support Fairtrade during Fairtade Fortnight in early March, which saw MACE stores offering consumers a specially designed coffee cup from Bewley’s, as well as special Fairtrade offers in-store. “Fairtrade Fortnight is a positive initiative which we are proud to be connected with, in conjunction with our partners Bewley’s, and we thank our customers for their support of it also,” said Alex Banahan, MACE Sales Director at BWG Foods.
Flora Women’s Mini Marathon REGISTRATION for this year’s Flora Women’s Mini Marathon, which is taking place on the June Bank Holiday weekend, is now open. This year, the Flora Women’s Mini Marathon is celebrating 30 years of family health, fun and fitness and to mark the occasion, Flora is running a competition to find families from all over the country that have made the event an integral part of their lives. Entitled ‘Flora Families’, the competition is searching for the networks of grandmothers, mothers, daughters, sisters, aunts, sisters-in-law and mothers-in-law who have made the Flora Women’s Mini Marathon part of their lives by encouraging each other to participate and making it an annual event in their family calendar, with the winning family receiving a five star weekend break along with €1,000 for the charity of their choice! For more information, see www. facebook.com/pages/FloraWomens-Mini-Marathon/ FloraFamilies. Miss Ireland Holly Carpenter is pictured with her mum Jane at the launch of Flora Families as part of the Flora Women’s Mini Marathon 2012.
Heavyweight Launch Campaign for Choccy Philly PHILADELPHIA with Cadbury, Kraft Foods’ biggest cross category innovation since its integration with the Cadbury business, launched with a light-hearted advertising and marketing campaign which tackles consumer scepticism about the combination of two of the nation’s biggest household brands, Philadelphia and Cadbury, head-on. The ‘Choccy Philly? Don’t Be Silly’ campaign sees Jennifer Saunders parodying people’s extreme reaction to the idea of Kraft’s completely new snacking proposition. The TV ad forms the centrepiece of a €400k integrated push, including outdoor, print, digital and sampling activity.
14|Retail News|March 2012|www.retailnews.ie
Centra National Conference
Centra to Create 150 New Jobs in 2012 Centra’s National Conference saw some big announcements by the group, including the creation of 150 new jobs this year.
Pictured at the Centra National Conference in Killarney are (l-r): economist David McWilliams, who delivered an economic report on Centra’s contribution to the Irish economy in 2011, and Martin Kelleher, Managing Director, Centra.
CENTRA’S National Conference in Killarney revealed that the group will add approximately 300 jobs this year, as 20 new stores are added to its network in 2012. 150 of these will be new jobs created by the opening of a number of new greenfield sites, with the balance of jobs created by store extensions and other independent stores joining the Centra network. This will represent an investment of €10m in new store openings, as well as the extension and refurbishment of existing stores.
Unique Consumer Offering
Speaking at the conference, Martin Kelleher, Managing Director of Centra, told the 458 Centra retail partners in attendance that the business recorded €1.4 billion in sales in 2011. This performance ensured that Centra maintained its position as Ireland’s number one convenience
brand, processing over 3m customer transactions per week. “Despite a difficult trading environment, Centra has recorded a good sales performance,” the MD said, noting how the addition of the 300 new jobs will bring the numbers employed in Centra to almost 15,000 people. “Our continued success can be put down to our unique offer to consumers in terms of value and the position our retailers fulfil at the heart of their local communities,” Kelleher stressed. “Our retail partners have been quick to adapt to the budget conscious consumer, with initiatives such as rounded price points and multi-buys; combined with excellent bundle offers.”
Centra’s Economic Contribution
The conference also saw the unveiling of an economic report by David McWilliams’ Economics Clinic on Centra’s contribution to the Irish economy in 2011. “We take our local stores, such as Centra, very much for granted,” noted McWilliams. “However, when you delve into the numbers behind these local, family owned enterprises and combine the number of stores within the Centra network, the contribution they make to Ireland Inc. is really significant. For example, the annual payroll for Centra in 2011 was almost €153m. Centra’s employment of younger and older people is also above the national average, with 40% of staff under 25 years old and 9% over 50.” The report also highlights that Centra retailers spent €15.9m on professional services and almost €40m
on products sourced from suppliers within their local community. In addition, Centra retailers contributed €715,000 to local GAA clubs and €1.4m to voluntary and community groups. The 458 Centra stores across Ireland also purchased Irish fresh food to the value of €140m, including €35m worth of Irish meat and poultry, €27m of Irish fruit and veg and €68m of Irish dairy products. “By anyone’s reckoning, these are significant numbers,” McWilliams noted. “More and more of us are shopping locally to avoid spending money on petrol or to ensure we are only buying what we need, as we cook it, so there is no wastage. This can only be good for our economy as we move forward, with international studies confirming that 45c of every Euro spent with local companies re-circulates back into the local economy. This is very significant for the Irish economy, as we claw our way out of our current issues.” Centra remains committed to local employment and sourcing from Irish producers, purchasing over €1 billion of Irish goods, with 75% of all products sold in-store produced or sourced in Ireland.
Pictured are (l-r): Martin Kelleher, Centra Managing Director; Breda Cahill, Centra Council Chair; and Ian Allen, Centra Sales Director.
www.retailnews.ie|March 2012|Retail News|15
Centra Store of the Year Awards
Three Centra Stores Scoop Top Awards Centra Stores in Naas, Ennis and Dublin scooped the top awards at the recent Centra Store of the Year Awards. A tough contest, which saw fierce competition from seven other excellent finalists from around the country, saw Cross’ Centra, Hazelmere, in Naas, Co. Kildare, announced as the overall Gold Award winner at the Centra Store of the Year Awards at the group’s national conference in Killarney. Ryan’s Centra in Ennis came a close second, winning the Silver Award, and Dunne’s Centra on Parnell Street in Dublin scooped the Bronze Award. The National Awards were presented by Martin Kelleher, Centra Managing Director, Ian Allen, Centra Sales Director and John Acton, Enterprise Manager, O2, awards sponsor. All 459 Centra stores throughout the Republic of Ireland are assessed for the Centra Store of the Year competition by independent retail consultant, Alan Collins. The audit focuses on value, fresh food, product range, hygiene and customer care.
John Acton, Enterprise Manager, O2, is pictured presenting the Centra Store of the Year 2012 Silver Award to Kay and Paul Ryan, Kate Sherlock and James O’Brien, Ryan’s Centra, Ennis. Also included is Martin Kelleher, Centra Managing Director (far right) and Ian Allen, Centra Sales Director.
“Each of the three winning stores are a perfect example of excellent retailing,” noted competition judge, Alan Collins. “From the time you enter these stores, you are greeted by an abundance of top quality fresh food in a bright and welcoming environment. Catering for the busy lifestyles of consumers in their areas, all three stores provide a superb range of hot food and takeaway meals, while also providing the best value for money offering on a full range of goods across the store.” The judge went on to note how all three winning stores “place a huge emphasis on providing good customer service and a range of services to ensure a unique shopping experience”. “Local sponsorship of many community initiatives within their areas makes these Centra stores and their staff an integral part of their individual communities,” Collins added.
Ian Allen, Centra Sales Director, congratulates store owners Barbara and Andrew Cross, Cross’ Centra, Hazelmere, Naas, Co. Kildare, on winning the Centra Store of the Year 2012 Gold Award.
Delighted with the win, Andrew Cross paid tribute to his team and said that their enthusiasm and professional approach was what singled out the Naas store for the award. “We work hard as a team on a daily basis to provide our customers with first-rate customer service and excellent value throughout the store,” he stressed. “The strong performance of our fresh and deli offering, catering for the busy and value-led consumer, keeps us very focused on areas such as price, hygiene, quality and customer service. We are delighted with this award, as it recognises and endorses the work we do to provide our customers with everything they need locally.” Martin Kelleher, Managing Director of Centra, said the group’s auditing standards in all areas of the business are second to none and are important to the overall success of Centra as a group. “Centra stores, such as these winning stores, work hard to succeed in today’s competitive market by meeting the needs of their local community and providing choice, good value and excellent service in a convenient location,” Kelleher noted. “Cross’, Ryan’s and Dunne’s Centra stores are a perfect example of local independent retailers working hard for their consumers and delivering stores that are recognised as the best in Ireland.”
Ian Allen, Centra Sales Director, and Martin Kelleher, Centra Managing Director, present the Centra Store of the Year 2012 Bronze Award to Noel Dunne and store manager, Sri Karringular, from Dunne’s Centra, Parnell Street, Dublin. Also included is John Acton, Enterprise Manager, O2, awards sponsors.
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Morgenrot Group to Distribute San Miguel in Ireland THE Morgenrot Group has been confirmed as exclusive distributor of premium Spanish brand San Miguel in Ireland and will be working with Fegans Foodservice to drive growth in 2012. Joining ultra premium Argentinean brand, Quilmes, and craft Spanish brand, Alhambra, in the company’s portfolio being distributed in Ireland, Morgenrot’s National Account Director, Graham Archibald believes these special world beers will see increased interest during the action packed summer ahead: “With the European Championships and Olympics on the horizon, I think there will be a real thirst from the trade and consumers this summer for quality international beer brands. Awareness of San Miguel is already high in Ireland so we are confident that the summer will provide the perfect launch pad as we look to drive listings and develop the brand further.” For further information on San Miguel, please contact the Morgenrot Group on (0044) 845 070 4310 or Fegans Foodservice (www.foodservice.ie) on 01 891 4500.
Appointment at E&J Gallo PHILIP Lynch has joined E & J Gallo Winery, the world’s largest family owned wine company, after two years as National Account Manager with Danone Ireland. Previously, Philip worked in Sales, Trade Marketing and National Account Management roles with Irish Distillers Pernod Ricard. As
Ireland Country Manager, Philip works closely with 10 International Ireland, E & J Gallo’s newly appointed distributor for the Republic of Ireland. 10 International Ireland was established in 2009 and is one of Ireland’s fastest growing and most successful wine distribution businesses.
Gilbeys Annual Portfolio Tasting ONE of the key highlights of the Irish wine calendar, the annual Gleeson Incorporating Gilbeys renowned Portfolio Tasting took place recently, showcasing over 400 wines from around the world, including a host of best-loved labels such as Drouhin, Trimbach, Barton & Guestier, Santa Rita, Faustino and Jaboulet. 40 producers from all over the world flew to Dublin to showcase their new wines for 2012, along with their 2011 award winners and exclusive wines. “We are delighted to have so many producers from all over the world here with us to showcase the fantastic diversity of wines in our portfolio. From our fine wines collection to our everyday brands, we continue to source new and exciting wines and look forward to expanding our portfolio in 2012,” noted SallyAnne Cooney, General Manager of Gleeson incorporating Gilbeys (pictured).
Remy Martin Releases CaskFinished VSOP BARRY & Fitzwilliam have announced that Remy Martin have replaced their standard VSOP with VSOP Mature Cask Finish. The new cognac has been developed for the European market and will appear in the trade from next month. Pricing will be in line with the current VSOP. Remy said that the new finishing period of a year in small Limousin oak casks of more than 20 years in age would emphasise peach and apricot notes in the blend, which is 55% Grand Champagne and 45% Petit Champagne eauxde-vie. Remy Martin VSOP Mature Cask Finish will be sold in a clear bottle with a year-round gift box.
Heineken Ireland Overview HEINEKEN Ireland enjoyed increased turnover to €464m in 2011, seeing Heineken extending its lager leadership in a challenging Irish marketplace, according to the company’s 2011 overview. Heineken Ireland remains Ireland’s number one lager supplier, with a 37% share of the total lager market and 26.5% of the total beer market. The Heineken bottle outperformed the Off Trade packaged lager market, and now commands 14% of that segment, while Coors Light showed significant growth of 8% in a declining Irish beer market, and Murphy’s Irish Stout and Beamish both performed in line with the market. “Heineken Ireland has delivered a very positive and solid performance for 2011, growing share and value across key brands in a depressed trading environment,” said David Forde, Managing Director, Heineken Ireland. “Our focus on maintaining a sustainable investment in our portfolio has enabled us to deliver robust top-line growth.”
IN W To Celebrate 10 Years of Hotel Solutions… Win a luxury weekend break in Galway! Ten years ago this February, Michelle Thornton set up her own business offering a venue-ﬁnding service to clients. Fast forward a decade, and she is now celebrating 10 successful years in a business that has progressed over the years into a full service event management company, with a broad range of loyal clients who wholly trust Michelle and her superb team to meet their business requirements time and time again. Michelle Thornton Hotel Solutions’ core business is conference, meeting and event booking, but their strengths also lie in teambuilding events, accommodation ﬁnding, leisure break packages, over-55’s breaks, weddings, golf packages and lots more. They have worked determinedly and consistently over the years, building relationships with hotels nationwide to source the best discounts and rates for their clients. To celebrate 10 years in business, Hotel Solutions are offering the readers of RETAIL NEWS the chance to win a luxury two night break for two people in Galway, staying in the beautiful Radisson Blu Hotel & Spa. Michelle Thornton, second from left, with some of the Hotel Solutions team: Ciara Halpin, Roisin Higgins and Gael Cooke Allen.
To be in with a chance of winning this fantastic two-night weekend break for two in the Radisson Hotel, Galway, simply answer the following question and send, together with your name, address and telephone number, on a postcard to Hotel Solutions Competition, RETAIL NEWS, Poolbeg House, 1-2 Poolbeg Street, Dublin 2, or email your details and answer to firstname.lastname@example.org.
Q: How many years are Michelle Thornton Hotel Solutions in business? Closing Date: April 16, 2012 • Terms and conditions apply • Judge’s decision is ﬁnal • No cash alternative given
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Retail News Interview
25 Years of the
Dermot Griffin, Chief Executive, The National Lottery.
The National Lottery celebrated its 25th anniversary in Ireland on March 22. Chief Executive Dermot Griffin talks us through the highlights of the last quarter of a century. new scratchcard business, but right from the very beginning, there was great media interest and Irish consumers really embraced the new scratchcard,” explains National Lottery CEO, Dermot Griffin. “I suppose the National Lottery really took the place of the National Sweepstakes in consumers’ hearts and it captured their imagination. But I don’t think anybody involved expected it to be as successful as it proved so quickly.” If anything, the National Lottery’s second year of operation was even more pivotal, with the launch of the country’s first every Lotto draw in 1988, which has been televised for each of the 24 years since. “Lotto was The National Lottery has unveiled a new 25th Anniversary one of the first logo for this, its anniversary year. computerised
On March 22, 1987, then Taoiseach Charles Haughey TD launched a brand new product into Irish retail outlets, a scratchcard from the National Lottery. For the princely sum of one Irish pound, consumers had a chance to win up to a quarter of a million. The playing mechanism (scratching off a panel to try to match three identical amounts) and the format proved an overwhelming success. “At the time, the expectation was fairly moderate around this
games of its kind in Europe,” Dermot explains – our near neighbours in the UK didn’t launch their own Lottery draw until six years later. “What it meant for the National Lottery was that we had two strong games, with our scratchcards and Lotto draw, with which to really capture consumers’ attention.” 1990 saw the third vital ingredient in the National Lottery’s incredible success story, with the inaugural broadcast of Winning Streak, which has since become the longest running TV game show in Europe and the envy of broadcasters throughout the continent. “I think there is something uniquely Irish about Winning Streak,” Dermot notes. “The quality of the contestants each week is superb: they just take to the show like ducks to water. When you’re presenting them with the cheques at the end of the show, they’re not as worried about the amount on the cheque as how they performed on the show. It’s their 50 minutes of fame on TV.”
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Retail News Interview
The McIntyre Family from Mayo who won €11,033,593 in the Lotto draw on Saturday, September 24, 2011.
One of the secrets to the National Lottery’s success has been its everchanging portfolio of games, including some big movie tie-ins like Indiana Jones and this year’s Avengers film, while others are geared towards particular holidays and seasons, like Christmas or Easter. Just last Christmas saw the re-introduction of a very successful large Adventstyle scratchcard, called Christmas Treasure, which proved extremely popular with consumers. “You need to continuously change the variety of the cards on offer and the play format in order to keep consumers interested,” explains Dermot Griffin. “There are some games which consumers will play every week, like Bingo-style games and Crossword-type games, where the prize isn’t the only reason consumers play – they actively enjoy the game mechanic. But in terms of scratchcards in particular, we need to keep our portfolio fresh and exciting. One of the most successful promotions we ran allowed consumers to send in a photo of their dog, and we then selected a number of dogs which featured on a scratchcard.” Another area where the National Lottery have led the way was the introduction of the first Millionaire Raffle in 2008, as Ireland was the first country in Europe to launch a nationwide raffle draw. The format, creating a guaranteed instant millionaire, was so popular that tickets sold out half-way through its first run. “It is marketed in pretty much the same way as any local raffle,” admits Dermot, “whereby you highlight the top prizes, and have a limited number of tickets - which involves a higher price point.”
The fact that retailers can use existing Lotto terminals to print Millionaire Raffle tickets makes it very accessible for both retailers and consumers, while its price point makes it hugely popular for gifting at Christmas – the most recent Millionaire Raffle draw sold out four days before the draw at Christmas 2011. Another innovation in 2010 saw the National Lottery running a very successful Sweepstakes competition, whereby 25 winners of their Sweepstakes draw were allocated a horse on Derby Day at the Curragh, with the winning horse creating an instant millionaire.
Obviously, there is a huge feel-good factor in turning ordinary people into millionaires, but some stories stand out more than others. One obvious candidate for highlight of the last 25 years was when Limerick woman Dolores McNamara won more than €115m on EuroMillions in 2005. “This was the first time that the EuroMillions jackpot was over €100m,
so the interest was huge right across Europe,” Dermot recalls. It being the August Bank Holiday Weekend, Dolores won her prize on the Friday night, but the National Lottery offices weren’t open until the following Tuesday morning. “Sky News were hugely interested in the story and sent over a TV van, which camped outside, but was there first thing on the Monday morning, as it wasn’t a Bank Holiday in the UK, and they couldn’t figure out why there wasn’t a soul on the street,” Dermot smiles. Some stories seem ready-made for the media, like the largest Irish jackpot of €19m, won in 2008 by a syndicate of workers from Dan Morrissey Ltd in Carlow, who each won approximately €1.18m. Others, while just as newsworthy, however, sometimes don’t make the papers. Like the Lotto winner and steam train enthusiast, who bought two steam engines with his winnings, at a cost of €500,000, or the winner who placed the winning ticket in their shoe right after the draw was made, and didn’t remove it until they entered National Lottery HQ the following Monday morning, producing a less-than-exemplary ticket from beneath their sock. “In the early days, you would have people arriving in the front door, having Tippex-ed out their numbers and inserted the winning numbers in their place, trying to claim the top prize,” Dermot laughs. “The strangest story I heard was the guy who had a winning ticket for one of the Lotto Plus draws, but had put the ticket in the wash. He took it out of the washing machine, and the numbers were still legible, but to dry it, he ironed the ticket, not realising that the numbers are actually burned onto the ticket via thermal printing, so all he succeeded
Model Pippa O’Connor is pictured launching the National Lottery’s 2012 Easter Millionaire Raffle Game.
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Retail News Interview tills, and they don’t have a customer service area where we could put a Lotto terminal. So there isn’t a format there that has proved successful, not just here but in other countries as well,” Dermot notes. While not ruling out entering into discount stores at some point in the future, he maintains that it would be dependent on either their business model changing or new technology coming on-stream.
Supporting the Retail Network
Members of the Order of Malta, one of many organisations which have received National Lottery beneficiary funding.
in doing was making the ticket totally black. He came into us, distraught, but we have so many security checks, we were able to verify the ticket and pay out the winnings.” Of course, over the National Lottery’s two and a half decades in operation, there have been no fewer than 11 unclaimed Lotto wins, the largest of which was for €3.4m, with the winning ticket bought in The Acorn newsagents in Coolock, Dublin 5 back in 2001. Players have 90 days after the draw to claim their prize: after that time, it goes back into the prize pool.
The Luckiest Stores in the Country?
Friends of Retail News are convinced that Bank Holiday jackpots always go west of the Shannon. While we’re sure this is just a case of conjecture and sour grapes, we wondered if any counties are particularly lucky when it comes to Lotto wins? “When you look at the prizes over time, it all averages out,” Dermot smiles, “but you can get runs of winners from one area. Earlier this year, we had five or six winners in a row from Cork, and recently Donegal had three or four winners in a row. It’s a bit like Winning Streak, where on some weeks, contestants are all from Dublin, while other weeks see all contestants coming from outside Dublin. When you look at the law of averages, however, it all evens out.” The CEO does point out, however, that if a particular retailer has a couple of big winners, it is usually deemed a lucky shop, with a resulting upsurge in sales, which can then lead to more wins, due to the large volume of Lotto trade in the store. He cites Pierce Hickey’s in Skibereen as a
prime example of this, with the store marketing itself as “Ireland’s luckiest Lotto shop”. “Pierce’s is one of those stores where Lotto sales are huge, along with other stores like Davey’s in Omeath, Co. Louth, so it’s not surprising that they tend to have multiple winners,” the CEO explains.
The Effects of the Recession
The average spend of a National Lottery customer is in the region of €8-9 per week, which includes Lotto, Lotto Plus, EuroMillions and scratchcards. This is a statistic that many retail sectors would be justifiably proud of, but that doesn’t mean that the National Lottery has been exempt from the recession. “The fall in retail footfall has undoubtedly affected us: if people aren’t in shops, they won’t buy tickets, and a lot of our sales are based on impulse,” Dermot admits. “Also, the changing shopping patterns are having an effect, with more people moving from convenience stores, where we are strongest, to multiples or discounters. On the other hand, when we have big jackpots, more people than ever play. The value of money has gone up so there is more incentive for people to play.” The end result: National Lottery sales are “somewhat” affected by the recession: “But compared to most other lines in retail stores, we are on the better side of performance, so we can’t complain.” There are currently no plans in place for the Lottery to become available in discounters Aldi and Lidl. “The discounters tend to have a smaller staff, who are at regular
It is very apparent that the National Lottery’s retail network plays a vital role in building excitement, particularly for large Lotto draws, a fact which Dermot readily admits: “Our retailers are fundamental to the success of the National Lottery. They are the interface with the end player, who puts their hand in their pocket and pays for the ticket. They do a superb job in terms of looking after players, because customer service is what they do best.” The relationship between the National Lottery and its retail partners is a two-way street, however. The CEO, along with the entire senior management team, regularly hit the road with sales reps, meeting as many retailers as possible. “We want to hear what our retailers are saying about what’s working and what’s not,” he stresses. “They work hard for us and we have worked equally well for our retailers, particularly in the last couple of years, by growing the range
Sheila Kelleher from Limerick, who won prizes to the value of €278,800 on the Winning Streak TV game show on Saturday, February 18, 2012.
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Retail News Interview Reeling in the Years 1987 The National Lottery launches in Ireland. The first ever National Lottery Grand Prize Game takes place live on The Late Late Show. 1988 Ireland’s favourite game, Lotto, launches with a fantastic fireworks display in Dublin’s Phoenix Park. 1989 Rita Power from Co. Galway becomes Ireland’s first Lotto millionaire. 1990 Europe’s longest running TV Gameshow, Winning Streak, launches. To date, over €129m has been won on the popular show. 1995 Sligo’s Breege Carrabine becomes the first ever TV Gameshow millionaire in Europe thanks to the National Lottery. 1997 78 lucky Fame & Fortune winners take a trip of a lifetime to Paris on Concorde. 1999 The hugely popular TellyBingo launches. 2002 The Lotto Plus game is revamped with the addition of the Lotto Plus 2 draw.
of games on offer and giving them more opportunities to sell.” Recent months have seen 1,000 digital screens rolled out to “top tier agents”, with another 1,000 retailers set to get their hands on the screens before the end of the year, which will represent approximately 90% of National Lottery revenue and 66% of its retailers. The screens allow them to further promote the jackpot amount, counting down to the draw, as well as highlighting winners in-store and showcasing beneficiary projects. Point-of-Sale is hugely important to maximising sales when it comes to the National Lottery, according to the CEO, as well as ensuring the play stand is positioned in a very visible location. There are also opportunities for sales staff to up-sell, he notes. “Research suggests that there is an extra 5% of Lotto revenue to be gained if retail staff are proactive in the sales process,” he says. “Looking at the retailers that we have who put more effort into sales, we get better
2004 The EuroMillions game is introduced in Ireland. 2005 Limerick’s Dolores McNamara smashes National Lottery records, winning over €115m in the EuroMillions game. 2007 Shane O’Donoghue presents the Lotto draw live from Cork City, the first time the Lotto draw takes place outside Dublin. 2008 The National Lottery launches a new brand identity, while Carlow’s Dan Morrissey syndicate make Lotto history by winning the biggest ever jackpot worth over €18.9m. 2009 Play Online launches, giving National Lottery players the convenience of playing instant win and draw games over the Internet. 2012 The National Lottery celebrates 25 years of making magic happen in Ireland.
numbers and they get more commission as a result. For example, we recently ran a promotion whereby the Leap Year Lotto draw saw all players who successfully matched four numbers receive a guaranteed €100. The preceding Saturday saw the terminal not only offer Lotto Plus but also offer players a ticket for the special Leap Year draw. We script it for the shop assistant, so once they follow the prompt on-screen, they have a fair chance of making an additional sale.”
but the CEO is adamant that they haven’t upped their marketing spend. “We typically spend about 2% of our revenue on marketing, which is an international norm. We’ve pretty much maintained those levels, but we have tried to structure our advertising better, by supporting specific draws on specific days. Also, media rates have fallen, so we have benefited from that. But it is important for us to continue to promote the different types of games on offer, which is all part of building the excitement of the National Lottery.” The excitement will be even more visible between March 22 and the end of the year, as there is a huge programme of activity planned to highlight the 25th anniversary of the National Lottery in Ireland, including the re-launch of the first ever National Lottery Scratchcard, the introduction of a new 25th Anniversary logo, and a competition for agents to win a trip to Euro 2012 in Poland. “We’re trying to make as many people aware of the National Lottery and the impact it has had over the last 25 years, where we have raised nearly €4 billion for good causes,” emphasises the CEO, who is extremely confident that An Post National Lottery will retain Ireland’s lottery licence when it comes up for tender. “Our track record is second-to-none in terms of international benchmarks,” Dermot summarises. “I think we will succeed in winning that licence by continuing to do all the things that we have traditionally done well: serving the customer, keeping the game portfolio fresh, working with our retailers on a day-to-day basis. We have worked really well with An Post over the last 25 years and I would like to think that will continue long into the future.”
High Profile Campaigns
The National Lottery has been very visible in recent years, with high profile TV and cinema advertising drawing attention to large jackpots,
Limerick woman Dolores McNamara celebrates winning more than €115m on EuroMillions in 2005.
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Baby Food & Care
Treasures The baby food and baby care markets remain strong, thanks to a combination of high birth rates and brand loyal consumers.
THE baby food and baby care markets in Ireland are extremely important for the retail trade. Not only are they valuable sectors in their own right, but they also serve to bring a wealth of customers into your stores on a regular basis.
Baby Food Birth rates remain relatively high in Ireland compared with the rest of Western Europe. Even still, however, the baby food category, like every other sector, has been affected by the recession. Consumers have addressed spending levels by turning to lowercost options where possible, according to the latest report into the sector by Euromonitor International. However, Irish consumers remain very brand loyal, particularly when it comes to their children, with many brands enjoying a reputation for high quality, and are subsequently highly trusted by consumers, according to Euromonitor, who predict that the most popular brands will maintain their positions in the category, while new innovations will continue to attract parents to the convenience of prepared baby food.
Danone Baby Nutrition
Cow & Gate has been manufactured in Ireland since 1887 and continues to manufacture infant powdered milk today in its plants in Cork and Wexford. The Milupa/Aptamil brand is the top-selling baby food brand in Ireland, which continues to drive growth within baby food year on year.
Infant and Growing Up Milks are the most important parts of the category, accounting for over 58% of category value. The Danone Baby Nutrition range offers a choice of milks to suit both baby’s and toddler’s individual needs. Iron is essential for growing toddlers. It is important for brain
Danone Baby Nutrition’s biggest category project in 2011 was the roll-out of their Big Hug Project in Superquinn Lucan, which consolidates all relevant baby related categories in one location in the store.
You protect from the outside. We help support from the inside.
As they grow, you know how important it is to protect your toddler from the outside, but did you know itâ€™s as important to support them from the inside? *APTAMIL GROWING UP MILK contains vitamin A, C & D which contributes to the normal functioning of the immune system. It is nutritionally superior to cowsâ€™ milk as it contains our unique GOS/FOS prebiotic blend to help support your toddler from the inside as part of a balanced diet.
Discover more at www.aptaclub.ie Freephone 1800 22 12 34
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Baby Food & Care
Cow & Gate has been manufactured in Ireland since 1887 and continues to manufacture infant powdered milk today in its plants in Cork and Wexford.
development, strong bones & teeth and healthy growth. Even with a balanced varied diet, it can be tricky to reach the recommended 8mg of iron a day. That’s why Cow & Gate have launched The Big Irish Iron Count to help parents check if their toddlers are meeting their daily requirements. Parents can log onto www.thebigironcount.ie to check their toddler’s iron intake. Here, they can also find lots of iron-rich recipes and food ideas to help improve their toddler’s daily iron intake. Cow’s milk is a really low source of iron and it would take up to 12 litres of cow’s milk to meet a toddler’s daily requirements, while just two 150ml beakers of Cow & Gate/Aptamil Growing Up Milk provide 50% of a toddler’s daily iron requirements. Growing-up milks now represent 25% of the total baby/toddler milk market by volume. The wet meal market remains key and Cow & Gate claims market leadership of this sector, with 38% market share by volume. The Fruit Pot Category is a very important part of the baby food category and is worth over €6m per annum. Cow & Gate 100% Fruit contains only fruit puree, with added vitamin C. Designed for babies and toddlers from 4 months to 3 years, they are the ideal way to put fruit in a baby’s diet while developing taste. 100% Fruit Pouches, in fun, squeezy pouches, allow for autonomous and ‘on the go’ feeding for toddlers. Cow & Gate Fruit enjoys a 46% market share MAT. The dry meal market is valued at €6.4m, and accounts for 27% of the meals category. The Milupa Dry range, manufactured specifically for the Irish market, has the majority
share of the Dry market, claiming a 72% value share. Milupa provides a wide range of nutritious cereals for growing babies – introducing a variety of flavours and textures. Milupa cereals are based on the highest quality ingredients and they provide essential nutrients such as iron, calcium and vitamin C, which are vital for a baby’s healthy growth and development. The Juices & Finger Foods segments of the baby food category make up 11% in terms of value share (Source: Nielsen Scantrack Value and Volume Sales, MAT, Jan 29, 2012). Danone Baby Nutrition’s biggest category project in 2011 was the roll-out of their Big Hug Project in Superquinn Lucan. The aim of DBN’s innovation, The Big Hug, was to simplify mums’ and dads’ shopping experience, achieved through the consolidation of all relevant baby related categories in one location in the store and by creating an engaging shopping experience for parents. The Big Hug represents Danone’s vision of the store of the future: an area in the store designed specifically to meet and exceed parents’ needs. It is all about creating a destination category by developing an inspiring and engaging in-store environment.
Heinz has been taking care of little appetites for generations with its comprehensive baby food range, offering everything for baby from
Heinz Organic Biscotti are delicious biscuit fingers which have been especially designed to fit perfectly in the hands of babies from 7 months onwards.
Heinz Mum’s Own Recipe offers some of its most popular savoury recipes across all age stages, so babies can enjoy dishes like Cottage Pie for longer.
Heinz Mum’s Own Recipe jars and trays, to rusks, baby cereals, juice, potted fruity custard desserts and the Heinz Cook at Home range. The highly successful Heinz Mum’s Own Recipe range is a unique concept, in that all the varieties in the range are based on recipe suggestions that Heinz have gathered from real mums. Heinz Mum’s Own Recipe, in its bright, eye-catching packaging, offers lots of delicious breakfast, savoury and dessert varieties across all age stages. Indeed, Heinz Mum’s Own Recipe offers some of its most popular savoury recipes across all age stages, so babies can enjoy their favourites, such as Cottage Pie, Spaghetti Bolognese and Sunday Chicken Dinner, for longer, while still discovering new, exciting textures. Heinz understand that mums and dads believe that homecooked food is the best food for their baby so the Heinz Cook At Home range of premium pastas, sauces and gravies have been specially developed for babies and toddlers. Suitable from 7 months onwards, Heinz Cook at Home makes it easy for mum and dad to cook for baby confidently at home with minimum effort.
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Baby Food & Care Recently relaunched Heinz Fruity Desserts are a blend of creamy custard or yogurt with fruit puree to create delicious varieties such as Fruity Custard, Fruit Medley and Fruity Yogurt - Banana. Suitable for all ages from 4-6+ months, each pack contains 4x100g servings in a convenient plastic pot, complete with a re-closable lid, making them the ideal dessert or snack solution at home or on the move. Heinz Farley’s Rusks, available in packs of nine or 18, are rich in Calcium, Iron and Vitamins and contain no added colours, flavourings or preservatives. Heinz Rusks are also available in Reduced Sugar and Gluten-Free varieties. The popular Heinz Farley’s cereals range is ideal for breakfast or dessert, and includes all the favourites such as Sunrise Banana Cereal and Strawberry Yoghurt, which are available in 125g packets. Heinz Organic Biscotti are delicious biscuit fingers which have been especially designed to fit perfectly in the hands of babies from 7 months onwards. With 12 individual biscuits per pack, Heinz Organic Biscotti are the perfect delicious snack for mums and toddlers up to 36 months. The range of Heinz Baby Juice remains ever popular in thirst quenching varieties such as Mixed Berries & Apple Juice with Spring Water and Pear Juice with Spring Water in handy 750ml packs. Due to its popularity, Heinz have also launched two of their most popular baby juice varieties in 110ml packs, Apple & Blackcurrant Juice with Spring Water and Apple Juice with Spring Water, making them ideal for when baby is on the move.
Liga: tried and trusted for over 50 years.
Liga Junior and Snack Packs are suitable for children aged 9 and 15 months old respectively and perfect for busy toddlers on-the-move. Each Snack Pack contains fun-shaped biscuits, easy for little hands to hold, whilst Liga Junior is free from artificial colours & preservatives. The Liga brand will be supported this year by a programme of highly targeted activity, including direct mail and in-store consumer promotions.
Baby Care The baby care market has remained stable in terms of value, according to the latest report into the sector from Euromonitor International. Despite the increase in birth rates, consumers are increasingly trading down to lower priced options across baby care. However, the sector has
not been affected as much as other grocery categories, due to the fact that Irish consumers remain steadfastly brand loyal, particularly when it comes to their babies, with some brands remaining popular with Irish parents through many generations. Indeed, Euromonitor predict that tried-and-tested products and those that offer better value for money will continue to perform best into the future.
Jaymark Sales & Marketing
The entire Milton range, from Jaymark Sales & Marketing, is specially designed for use around babies, which is why each product is clinically tested to ensure it not only offers maximum protection but is safe for use around little ones. This is why you’ll always find Milton products in the baby aisle
For over 50 years, Irish mums and dads have trusted Liga, from Valeo Foods, as a nutritious and energy rich addition to baby’s diet. This iconic range, which includes Liga Original, Junior, Snack Packs and Milk Breaks, has a product suitable for every stage of infant development from 4 months upwards and has enjoyed strong yearon-year growth. Liga Original, fortified with vitamins and minerals, is a must-stock item in the baby category. It is free from artificial colours, flavours and preservatives, while having the added reassurance of reduced salt and sugar. Like all products in the Liga snack portfolio, it is also portion packed for handy on-the-go eating.
The Milton range, from Jaymark Sales & Marketing, is clinically tested to ensure it not only offers maximum protection but is safe for use around little ones.
26|Retail News|March 2012|www.retailnews.ie
Baby Food & Care
Milton sterilises in just 15 minutes, with the solution staying sterile for 24 hours.
in supermarkets. Over the years, many new heat methods of sterilising have been introduced: however, research shows that Milton is not only just as effective but easier to use too, while also offering excellent value. Milton sterilises in just 15 minutes, with the solution staying sterile for 24 hours. It is clinically proven to kill all harmful viruses, fungi & bacteria. In short, the Milton method is fast, easy & safe.
The continued focus for the Huggies brand from Kimberly Clark in 2012
is to supply mums and dads in Ireland and the UK with products that provide innovative solutions so they can focus on the more important things in life. Huggies’ key product initiative for 2012 is the launch of the new drylock system, the brand’s biggest investment in over four years and best ever protection against leaks. The unique new drylock system combines a super absorbent core to draw moisture away from babies’ skin fast (Source: Rewet test December 2011), improved flaps, leg elastics and a super soft, stretchy waistband to guard against leaks. Setting a new standard of anti-leak protection, the product upgrade is set to drive category growth and customer reappraisal. The new technology will be available in Super-Dry and Natural Fit nappies, with new packaging including a visual cue
Huggies’ new drylock system is the brand’s biggest investment in over four years and best ever protection against leaks.
that demonstrates how the drylock system works. The launch has seen a significant communication investment, including an exciting TV campaign, which kicked off in Ireland this month, together with nationwide sampling, PR and online activity.
Procter & Gamble
Pampers, from Procter & Gamble, is Ireland’s favourite nappy brand, claiming 68.1% value share (Source: ACNielsen, L12M Value Share to end of Dec. 2011) and showing continued growth year-on-year, up by 2.7 points versus a year ago. Pampers nappies are specifically designed to meet the changing needs of babies. For each stage of the babies’ development, there is a Pampers nappy to help babies feel comfortable
The hugely popular Pampers brand, from Procter & Gamble, specifically designed to meet the changing needs of babies.
with trusted Pampers dryness. There is also a Pampers nappy for every type of budget, with Simply Dry providing trusted Pampers dryness at an affordable price (retail price is at the sole discretion of the retailer). In 2012, Pampers is investing in a host of activity to boost the baby care category, including product innovation across the range. Pampers Active Fit and Baby-Dry ranges will benefit from improved leakage protection to provide even more Pampers dryness, for up to 12 hours of golden sleep. New Pampers Active Fit will have more than 15% extra absorbing zones, whilst new Baby-Dry will lock in even more wetness through an improved absorbent core.
75 YearsVM THIS year, the iconic Smarties brand will celebrate its 75th anniversary. To mark this special birthday, Smarties have introduced a limited edition retro hexatube, drawing on the unique and fun heritage of the brand. Smarties were first created in 1937, before which they were sold as Rowntree’s Chocolate Beans. Over the years, Smarties have undergone several changes to the coloured chocolates sweets. In 1956, the first ever Smarties TV ad was released with the catchy strapline ‘sweetest, treatest, best to eatest’. Following this, the coffee, orange and dark chocolate centres were replaced with milk chocolate. Interestingly, UK and Ireland are the only counties worldwide to still have a distinct orange flavour for the orange Smarties. 1988 was the year of the blue Smarties - introduced to the range as a limited edition but soon due to the popularity of the “blue one”, it became a permanent edition to the range. In 2005, Smarties proudly became one of the first children’s confectionery brands to move to “no artificial colours”. Maria McKenna, Consumer Marketing Manager, Nestlé Ireland, said, “Smarties packaging has always been distinctive, and the 1980s’ design, with its bold dark background and white Smarties font, is instantly recognisable to many of us. The Smarties tubes have always been an iconic part of the brand’s heritage, so what better way to celebrate our 75th anniversary than creating a limited edition tube. We hope to bring all the fun of Smarties to families for the next 75 years.”
Ten things you never knew about .... Smarties! 1. Rowntree’s of York had been making a product called ‘Chocolate Beans’ for more than 50 years before it changed the name to ‘Smarties Chocolate Beans’ in 1937. 2. The firm dropped the words ‘chocolate beans’ in 1977, when trading standards officers said the use of the word ‘beans’ was misleading. 3. Until 1958, there were coffee-flavoured brown Smarties. 4. Ireland and the UK are the only countries in the world to have orange-flavoured Smarties. 5. Blue Smarties were dropped in Ireland and the UK when the company removed artificial colourings. 6. Blue returned two years later when a natural blue colouring was found in spirulina seaweed. 7. More than 60 Smarties are eaten every second in Ireland. 8. Machines at the Smarties factory fill seven tubes (220-250 Smarties) a second. 9. Smarties are oblate spheroids with a minor axis of about 5mm (0.2in) and a major axis of about 15mm (0.6in) 10. Laid in a line, all the Smarties eaten in Ireland in a year would stretch more than half way around the Equator.
28|Retail News|March 2012|www.retailnews.ie
Egg-citing Easter from Kraft Sabrina O’Leary, Category Manager, Kraft Foods, on the consumer trends and new products driving sales this Easter. THE Easter confectionery market grew in 2011 by +3.4% to €24.2M (Source: ACNielsen Extended Scantrack to April 24, 2011) and is now the second most important selling period for confectionery. 84% of the market is accounted for by traditional shell eggs, while impulse and novelties account for the rest. Kraft is the number one manufacturer, claiming a share of 49.5% (Source: ACNielsen Extended Scantrack to April 24, 2011). Sabrina O’Leary, Category Manager at Kraft Foods, explains how the company has continued to lead the way in terms of understanding consumer trends and introducing new products to match.
What new products have Kraft lined up for this Easter?
“This year, the number one Easter impulse brand, Cadbury Creme Egg (Source: Source: AC Nielsen Easter Review 2011) will introduce a new bitesize product, Cadbury Creme Egg Splats, a 165g sharing bag. These chocolatecovered splat shapes contain Creme goo filling and are ideally suited to sharing occasions. There is a smaller ratio of fondant to chocolate than in the The Cadbury Buttons Easter egg variant, Egg from Kraft Foods comes with a soft toy for Easter 2012. giving
including high impact retailer promotions and a recent experiential marketing campaign which created huge brand interaction online, through encouraging Irish consumers to use social media to help Creme Egg release its Goo. In addition, Kraft Foods will be supporting 20 Easter Egg Trails across Ireland by supplying product, entertainment and promotional support to successful applicants. This enhanced marketing support across the Easter season will help make Easter fun and engaging for consumers.”
Cadbury Dairy Milk: a surefire winner this Easter.
consumers a more chocolatey taste sensation. “The Cadbury Mini Eggs brand has seen strong growth over the past few years and this year will see the introduction of two new formats: a new flip-top re-sealable 45g carton is being introduced, which is more suited to everyday snacking, and with a new 195g Mini Eggs sharing pouch bag, Mini Egg fans now have a pack that is ‘just right’ and will tap into that growing bitesize category with one of the leading brands.”
How can retailers maximise their confectionery sales this Easter? “Retailers can maximise their Easter sales by using theatre and dedicated floor displays to drive purchase. Locating these displays in high traffic flow areas and ensuring they are well stocked is also key in maximising returns. Easter impulse displays for convenience are the perfect way to launch the Easter season.”
What is Kraft’s strategy for success this Easter?
“This year, Kraft Foods will implement an Easter strategy which includes a combination of new product innovation and enhanced marketing activities to provide retailers with the optimum products and support to grow Easter revenue. A new TV advertising campaign for Creme Egg has been supported by a number of Irish-specific marketing activities,
Cadbury Caramel Large Egg: hugely popular with Irish consumers.
www.retailnews.ie|March 2012|Retail News|29
New Irish Women’s Magazine from the Irish Farmers Journal Dear Retailer, The publishers of the Irish Farmers Journal and The Irish Field are launching a new quarterly magazine called Irish Country Magazine on Thursday, March 29, 2012. This new magazine follows on the tremendous popularity of the Irish Country Living weekly supplement in the Irish Farmers Journal. This popularity was demonstrated again when the latest JNRS figures showed readership growth between 2010 and 2011 from 145,000 to 179,000 – growth of 33,000 or 23%. We published five glossy magazines with the Irish Farmers Journal over the past 12 months. The response we received from these trials was brilliant, so we took the decision to launch a standalone magazine for the Irish market. Irish Country Magazine is unique, as it will be the only magazine on the Irish market which will cater for Irish women who are proud of their country life and are focused on the home and family and like to look well and feel good. The Irish Farmers Journal continues to grow its circulation year on year in a difficult newspaper market, delivering €1.9m in profits for Irish retailers in 2011 (Source: CSNA, Nov 29, 2011). We aim to deliver increased profits for retailers in 2012 through sales of the new Irish Country Magazine that will begin as a quarterly magazine, with future plans for it to become a monthly title. This new magazine will retail at €2.99 and retailers will receive a 25% margin on all magazines sold. Distribution is by Newspread. We will have a print run of 30,000 and are going into 3,300 retailers nationwide. The magazine will be printed by the Boylan Group in Ireland. The main promotional campaign is via the Irish Country Living supplement but also through local radio, significant PR and social media. As a team, we’re all doing a little extra to deliver this new product. It’s an additional offering for the reader and is being created in-house, using our own resources and skills. Editorial content for this new magazine includes: lifestyle & wellbeing, nutrition & diet, poultry & vegetable growing, fashion & beauty, chefs Neven Maguire, Catherine Fulvio and Maureen Gaffney. Irish Country Magazine appeals to regular women and isn’t celebrity driven. Many thanks for your continued support: we hope that this Irish magazine will be successful for both ourselves and our retailers!
David Leydon, Circulation Sales & Marketing Manager Irish Farmers Journal & Irish Country Magazine www.irishcountrymagazine.ie
30|Retail News|March 2012|www.retailnews.ie
Centra Quality Awards
Centra Retailers Clean Up in Hygiene Awards No fewer than 346 Centra stores were rewarded for exemplary hygiene standards at the 2012 Centra Quality Awards. 65 Centra Stores were presented with the Supreme National Hygiene Award by Martin Kelleher, Managing Director, Centra and Irene Collins, Managing Director, Excellence Ireland Quality Association, at the 2012 Centra Quality Awards presentations held in Killarney recently. The Supreme Hygiene Award identifies and rewards retailers that have performed to a consistently high level over a three-year period. Year-on-year, these entrepreneurial food retailers continue to push out the boundaries of excellence. In addition, a further 281 stores were presented with the Excellence Ireland National Hygiene and Food Safety Certificate, which is independent verification of the highest standards of operational hygiene and food safety in the food sector business. A total of 346 Centra Stores in the Republic of Ireland have achieved the National Hygiene and Food Safety Certificate, demonstrating the huge importance Centra retailers attach to rigorous quality and food safety measures.
Dedication & Commitment
Commenting at the awards ceremony, Martin Kelleher, Managing Director, Centra, said: “The Centra Quality Awards recognise the dedication and commitment of Centra retailers around Ireland, to delivering the highest standards of hygiene, food safety and quality, in all aspects of their business. “With almost 350 Awards and Certificates presented, it is clear that the Centra ethos of quality and superior customer service is at the core of our retailers’ businesses,” he continued. “I have seen how our retailers operate on a daily basis and I am delighted to see their hard work in achieving such levels of excellence recognised.” Irene Collins, Managing Director of Excellence Ireland Quality Association, added: “The Hygiene Mark indicates that a business complies with the highest standards of hygiene and food safety within their given industry. Within the Irish food sector, the retail market currently dominates the field in terms of food hygiene and quality compliance. Centra has earned a well-deserved reputation, demonstrating the significant importance attached to implementing and maintaining meticulous quality and food safety standards.”
Pictured receiving the Supreme National Hygiene Award from Martin Kelleher, Centra Managing Director, and Irene Collins, Managing Director of EIQA, are Claire Bermingham and Conor Scally, from Scally’s Centra, Arden Rd, Tullamore, Co. Offaly.
Ian Allen (left), Centra Sales Director, and Soraid McEntee (right), EIQA, present Fred and Chris Down, Down’s Centra, Ballincollig, Co. Cork, with the Excellence Ireland National Hygiene and Food Safety Certificate.
Joe and Pamela Deasy, from Deasy’s Centra, Clarecastle, Ennis, Co. Clare, receive the Excellence Ireland National Hygiene and Food Safety Certificate from Martin Kelleher, Centra Managing Director, and Irene Collins, Managing Director of EIQA.
Delicious lamb, itâ€™s all down to the rain and sweet green grass.
Your food is our passion bordbia.ie
32|Retail News|March 2012|www.retailnews.ie
On the Vine
Bon Chance Retailers who are serious about selling wine need to make sure they have even a small range of quality French wines on their shelves, writes Jean Smullen. THE sale of French wine on the Irish market has remained steadily consistent during the last 25 years. The latest figures to September 2011 show France in third place, holding 12.6% of all volume sales in a total market of 8.7m cases annually. French wine still has a cachet with the consumer. The mantra “if it’s French, it must be good” is one that still comes across loud and clear. While for everyday drinking, most consumers will buy at an entry level price point, when it comes to special occasions, they trade up and nine times out of 10, it is to France that they turn.
So why do French wines appeal and what is the trade doing about it? French wine styles are the benchmark that so many other countries try to emulate. French grape varieties are planted all over the wine world. Chardonnay, Sauvignon Blanc, Merlot, Cabernet Sauvignon and Syrah have become ‘brand
names’ in their own right, but most people don’t realise that they are in fact French grape varieties. The wine retailer who wants to offer something different to his customer ignores French wines at their peril. In recent months, I travelled around Ireland, visiting wine shops. It was interesting to see many retailers prominently displaying Australia, New Zealand, Chile and South Africa in clearly defined specific shelving areas, but had French wine lumped in the same shelves with wines from Spain, Portugal and Italy. I had to ask myself how did this happen? How has the once mighty France been reduced to a shelf labelled ‘European Wine’?
The Value of Education
Price is the key, that and the fact that French wines tend to be labelled by the name of the region or appellation, or by the name of the producer, which means very little to the average consumer. So how do we address this?
How do we add value and make our customer aware of their classic wine styles? Education is the key, that and enthusiastic staff who know what they are selling. What’s in it for the retailer? Higher margins, that’s what. If the consumer wants to trade up and the product is not available, then the sale (and the profit) is lost. Retailers who are serious about selling wine need to be aware of this and need to make sure they have even a small range of quality French wines on their shelves. Irish consumers have less disposable income available to spend on treats and luxuries, but as the economy eventually recovers, these treat purchases will increase. Now is the time for the retailer to makes sure they have a small but carefully selected range of French quality wines. The retailer who does not do this is facing a missed opportunity and loses the potential for future more regular sales of mid-priced wines further down the line.
Febvre and Company have been awarded the agency for Maison Louis Latour, the renowned family run Burgundy House, for the Republic of Ireland. Anthony Alken, MD of Febvre and Company, expressed his delight at the new partnership between Louis Latour and Febvre: “Both are family owned companies that value reputation and are committed to serving our customers with quality wines.”
www.retailnews.ie|March 2012|Retail News|33
On the Vine Quality Mid-Priced Wines from France
Most of the importing companies are fine-tuning their lists and are now offering some very good quality mid-priced wines from France and other European countries at very competitive prices. Febvre & Co., for example, are very well known for their incredible range of good quality French wines from the classic regions of Bordeaux, Burgundy, Rhone Valley, Languedoc-Roussillon, Loire and Alsace. Febvre & Co. were recently awarded the agency for one of the best known family run Burgundy houses, Louis Latour. Maison Louis Latour has been owned and managed by the same family since 1797. Their Macon Lugny, Chablis and Pinot Noir have become firmly established within the Irish market and are strong sellers. Both Febvre and Louis Latour have many synergies: both are family owned companies and both are committed to selling quality wines to their customers.” Findlater Wines & Spirits is another Irish importing company who take their fine wine range seriously. They have recently appointed Peter Roycroft as their Senior Development Manager for Premium and Fine Wines, with their range including the wines of Michel Chapoutier from the Rhone, Maison Louis Jadot and J Moreau & Fils (Burgundy), Chateau Meaume (Bordeaux), Domaine Jean Max Roger and Didier Dageneau from Loire and Hugel & Fils from Alsace. There are many Irish importing companies who presently offer a comprehensive range of very good quality French wines. Here are a few recommendations from the mid-price range.
french Wines Over €10 Main a Main Chardonnay Sud de France: €10.00 (Searsons Wine Merchants)
2009 Gabriel Meffre Cote du Rhone Rouge: €11-12 (Barry & Fitzwilliam)
The south of France is a source of some of the best value wines in the world. The Main a Main wines are sourced from one of the finest family-owned wine producers in the Languedoc region. The Chardonnay stood out for me. I am now a signed up member of the BBC club (Bring Back Chardonnay). This is a beautiful wine, full of ripe lush melon fruit, with lovely vanilla spice and buttery creamy flavours. This wine stands out as being elegant, yet fun and fruity: well priced too!
The Cotes du Rhone is another important French wine region. The region is centred on the city of Avignon in the South of France. Gabriel Meffre has a range of wines from both the Rhone Valley and the Languedoc which express the richness of the terroir. Their Cotes du Rhone is a soft fruity wine, very suitable for the novice consumer who wants to learn more about wines from the Rhone Valley. Made from a blend of grapes, including Grenache, Mourvedre and Carignan, this is a very good quality red wine from one of France’s best known regions.
2010 J Moreau & Fils AOC Chablis: €18.99 (on promotion at €14.99) (Findlater Wines & Spirits)
2008/09 Chateau Bellevue la Foret AOC Fronton: €15+ (Mackenway Distributors)
This wine was one of the winners in the NOffLA Gold Star Awards in 2011 and deservedly so. Chablis is found in the Yonne Department near Auxerre. The Chablis vineyards lie along the River Serein. The Cistercian monks began growing vines here in the 12th century. The Chablis AOC was created in January 1938: it is a dry white wine, made from the Chardonnay group grown on Jurassic limestone. The soil contains deposits of fossilised oyster shells, which reminds us that Burgundy was once the bottom of a warm ocean. These Kimmeridgian chalk soils give a fresh wine with green apple flavours. This is a fresh crisp wine style. Chablis is a unique and well recognised wine region. This is definitely one to stock.
Recently purchased by Irishman, Philip Grant, this winery has been represented by Mackenway Distributors for over 25 years. This wine is made from 50% Negrette, 35% Cabernet Franc and Cabernet Sauvignon and 15% Syrah. The unique Negrette variety originated in Cyprus. This has lovely black fruit, blueberry, blackcurrant, bay leaf and sage. It pairs really well with roast beef or aged cheese. A unique wine from a lesser known French wine region, but now with an Irish connection!
2009 Baron Philippe de Rothschild Cabernet Sauvignon: €10.99 (Cassidy Wines) Since 1933, Baron Philippe de Rothschild, located at Pauillac in the Medoc, in the Bordeaux region of France, has been renowned as one of the world’s finest wine producers. Whether it is the Chateaux wines from Chateau Mouton Rothschild (a first growth) or branded wines like the famous Mouton Cadet, one of the key factors to their success is the art of blending. Their IPR Varietal range offers very good value from the South of France. Cabernet Sauvignon from this warm mediterrean region is full bodied and fruit forward.
2008 Les Charmes de Magnol: €14.99 (Gleeson Incorporating Gilbeys) The Barton family is another one with strong links to Ireland. Part of the Barton & Guestier range, they offer a huge selection of quality French wines from Bordeaux, the Loire, Cotes de Gascogne, as well as IPR wines (previously known as Vin de Pays) and the quality AOC Bordeaux wines, of which this is one. Made from the classic blend of Cabernet Sauvignon, Merlot and Cabernet Franc, this wine has quite a pedigree. This is the second label wine of the famous Chateau Magnol from the Haut Medoc region of Bordeaux. With Easter coming up, this is a ‘must stock’ to go with your customers’ roast lamb.
34|Retail News|March 2012|www.retailnews.ie
Flavour of the Month! Joanna Andrews, Western Europe Brand Manager, Smirnoff Flavours, on the launch of Blueberry Smirnoff and the opportunities it presents for the Irish trade. What does the launch of Blueberry Smirnoff mean for Ireland?
We expect the launch to drive real buzz and excitement for consumers in the vodka category. In the current climate, consumers are looking for little treats and Blueberry Smirnoff is perfectly positioned as an affordable treat when relaxing with friends.
What activity is planned for the launch?
We have a very strong launch plan to drive awareness of Blueberry Smirnoff, as well as the existing Green Apple Smirnoff and Lime Smirnoff variants and their simple serves. We’re running an outdoor, press and digital campaign in March, including Facebook activity to target our fanbase of nearly 100,000 consumers to drive lots of buzz and excitement around the launch. In addition, we have a strong off-trade plan to drive visibility and trial, including gifting 36,000 5cl miniatures of the different Smirnoff Flavours with Smirnoff No. 21 bottles.
How important is new flavour development to (a) the overall drinks market, and (b) the vodka category?
Innovation is very important to drive growth and ensure the category is delivering against new and evolving consumer needs. New flavour development is important in the drinks category, in order to drive vibrancy and maintain consumer interest. Flavour innovation has proven successful for many FMCG sectors, such as crisps and ice cream, and many consumers expect ‘new news’ from their favourite brands. Within drinks, vodka is particularly well positioned for flavour innovation. As a neutral
spirit, it provides a blank canvas for creating almost any flavour. We have seen from data in the UK that the introduction of Smirnoff Flavours has attracted new shoppers into the category, which is great news for retailers and the brand.
How successful have Smirnoff Flavours been in Ireland?
Smirnoff Flavours are Ireland’s number one flavoured vodka brand (Source: ACNielsen, January 2012). Additionally, Smirnoff Flavours are driving significant flavoured vodka category sales, with volume growing at 73% and value at 61% (Source: AC Nielsen, November 2011).
Why do you think Irish consumers have embraced flavoured vodkas so quickly?
Flavoured vodka has been around for a long time in Ireland. However, since the launch of Green Apple and Lime Smirnoff, we have taken the lead in investing in the category and educating consumers on how to drink it, which has been the key barrier to growth in the past.
As Smirnoff is the number one spirit brand in Ireland (Source: ACNielsen, March 2012), consumers are confident in the quality of Smirnoff flavoured vodka and the power of the brand, combined with the simple serve message, has been well received by consumers.
How can off trade retailers ensure they maximise sales?
The flavours should be merchandised alongside the Smirnoff vodka range and we would also recommend that retailers use display solutions and train their staff to highlight the perfect, long mixed serve to shoppers. This will help ensure they know what to mix the flavours with and that they have the best possible drinks experience at home, encouraging repeat purchase.
What else can we expect from Smirnoff Flavours over the course of 2012?
We will continue to focus on driving rate of sale across the entire range of flavours and are exploring innovative ways to do this – watch this space!
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