How Safe Are Your Lighters? 3 out of 4 Lighter models sold in the EU don’t conform to ISO 9994 International Safety Standards* Selling non-compliant lighters may result in being fined up to E3,000 per lighter sold
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BIC Ireland, Regus House, Harcourt Centre, Harcourt Road, Dublin 2, Registered Ireland No. 37033
November 2011
Roast chicken. It’s what family meals and tomorrow’s sandwiches are made of.
Your food is our passion bordbia.ie
www.retailnews.ie|November 2011|Contents|3
Contents Questioning the Minister Minister for Jobs, Enterprise and Innovation, Richard Bruton TD is the man most of us, including retailers, are looking to for guidance out of the recession. In an extensive, wide-ranging interview, Retail News Editor John Walshe questions the Minister on the big issues facing the trade, from the reform of the JLC’s to the proposed ban on upwardonly rent reviews (Page 18). The Minister discusses “the vital role” of the retail sector in restoring the fortunes of the national economy, and how he plans to remove obstacles to job creation and job retention. He answers questions on the high costs of doing business in Ireland today, explains the Government’s moves to improve access to credit for SMEs and discusses the need for a regulatory Code of Practice for the trade. Elsewhere, our Chief News Reporter Pavel Barter reveals how new EU legislation could supersede that proposed Code of Practice (Page 5), and also finds out what you, the retail trade, would like to see in the forthcoming Budget 2011 (Page 4). We also report on the recent Gala annual conference (Page 22) and preview Bord Bia’s fourth Marketplace International event (Page 25), while PostPoint and Retail News give you the chance to win a fabulous gift card from One4all (Inside Back Cover). Finally, as the festive season fast approaches, we provide the annual Retail News guide to what’s hot for Christmas, highlighting must-stock brands across the entire store, from batteries to cooking chocolate, pastries to selection boxes, magazines to top-selling tipples, with everything in between (Page 28-49).
News
4
Budget 2012: What Would You Like to Happen?
5
EU Code to Supersede Irish Code of Practice?
6
Diesel Laundering Costing €150m and Growing; Access to Credit for SMEs to Ease.
Retail News Interview
18 Retail News Editor John Walshe questions Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, on the big issues facing the trade, from the abolition of the JLC’s to the proposed Code of Practice.
18
Gala Annual Conference
22 Gala’s annual conference saw the group unveil its plans to help retailers go the extra mile in attracting new customers and adding value in-store.
4 7
8
Grocery Market Remains Subdued; New CEO Designate at GS1.
Marketplace International
25 Bord Bia’s fourth Marketplace International event takes place on February 7, 2012, and will allow trade buyers to meet in excess of 170 Irish food and drink suppliers.
Musgrave Establishes New Operating Division; Healthy Eating Suffers in Recession.
Shop Profile
16 Thomas Ennis’ brand new SPAR store on Dublin’s Mount Street is the latest in a line of top quality stores owned by the entrepreneur.
Kathleen Belton Editorial & Marketing Director
National Quality and Excellence Awards
26 SuperValu and Centra swept the board at the National Quality and Excellence Awards, with Hurley’s SuperValu Midleton scooping the overall National Award for Hygiene and Food Safety for the second year in a row.
16 T A R A
Managing Director: Fergus Farrell
Published by: Tara Publishing Co. Ltd.,
Editorial & Marketing Director: Kathleen Belton
Poolbeg House, 1/2 Poolbeg Street, Dublin 2.
Editor: John Walshe
Tel: (01) 2413095 Fax: (01) 2413010
johnwalshe@tarapublishingco.com
Advertising: Kathleen Belton
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Reproduction without written permission is strictly prohibited.
On The Vine
49 Jean Smullen highlights the must stock brands for the festive season.
Store Focus
58 Paul Valentine’s stores in Carlingford, Co. Louth, are successfully trading through the recession, despite the proximity of competition from retailers in Northern Ireland.
SHOP 2011
60 SHOP 2011 proved a tremendous success, showcasing the best of Irish products from over 140 exhibitors over the course of the three-day event.
Shelf Life
62 All the latest news and gossip from the trade.
Regulars 10 Industry News 57 Market News Sectoral Reports 28 Christmas Stocking 50 Tobacco Products
4|Retail News|November 2011|www.retailnews.ie
News
Budget 2012: What Would You Like to Happen? Retail News has spoken to numerous retail groups and representatives about their hopes for Budget 2012. Many of them had different takes on what’s required to kick-start the economy, but almost everyone expressed concerns about the timing of the budget. December 6, after all, is on the brink of the busiest time of the year for retailers. “Provide people with a lineof-sight on their likely takehome pay by setting out the detail of the upcoming budget, preferably before December, which is an important period for the retail trade,” said Leo Crawford, Chief Executive, BWG Group. David Fitzsimons, CEO of Retail Excellence Ireland, was more forthcoming about the choice of Budget Day. “To have a budget on December 6 is ludicrous,” he said. “You wouldn’t see other jurisdictions doing it: typical Irish rubbish nonsense. They need to cop on to the fact that in a time of greater spend in the Irish economy, we need economic surety, consumer confidence. October 31 is the deadline for self-assessment. We understand fully the need for the Government not to be planning in the dark and for them to have the numbers in front of them. The budgetary
Leo Crawford, Chief Executive, BWG Group.
David Fitzsimons, CEO of Retail Excellence Ireland. announcement should be made in February and implemented on a taxation calendar basis. Keep it out of Christmas.” Vincent Jennings, CEO, Convenience Stores & Newsagents Association (CSNA), said the timing could have an adverse affect on the retail sector: “If Michael Noonan is telling [consumers] to buckle up, then they’re going to lock their money further away and refuse to open their wallets. The timing is appalling. I see no reason why you couldn’t have a budget in the second week of January.” The finer details have yet to be revealed, but one fact remains: the 2012 budget will further tighten Ireland’s purse strings. The government has proposed a €3.8 billion adjustment, including €1.6 billion in tax measures and €2.2 billion in spending cuts. Retail groups, such as BWG, expressed concerns that the budget might be too austere, thus hindering a recovery of domestic spending. BWG’s Crawford said the country already faces a lack of consumer confidence, combined with an uncertain trading environment. “Consumers are trying to come to terms with falling disposable incomes while retail businesses are grappling with rising business costs and tightening bank credit,” he said.
Building consumer and business confidence in Ireland is a priority. “Government needs to take the lead and demonstrate its own confidence by implementing the necessary changes. Consumers, I have no doubt, will respond as their confidence returns,” added Crawford. Tara Buckley, RGDATA Director General, urged the Government not to further dampen consumer confidence. “Retailers have just gone through one of their toughest years,” she said. “They went through all their cost cutting a couple of years ago, increased their offers and changed the way they operate their shops. If we don’t have a good Christmas, there are a lot of shops that are very concerned. People are burdened with taxation costs, the universal social charge: it is seen in consumer spending in shops. We are also very concerned about them making changes that will push people to shop over the border. They should be careful about changing VAT, introducing food taxes, waste management taxes...” Kieran Tobin, Chairman of the Drinks Industry Group of Ireland (DIGI), said the Government’s cut in excise for the drinks sector helped repatriate cross-border shopping. Tobin told Retail
RGDATA Director General, Tara Buckley.
News the Government could add another 10% cut in Budget 2012, “which is more psychological than a major price reduction and a stimulus to encourage people to go out and spend.” BWG’s Leo Crawford had his own perspective on the alcohol industry: “Ban belowcost selling of alcohol, which is creating unfair competition, displacing jobs across the hospitality sector and which has negative social consequences.” CSNA’s Jennings cautioned the industry about increasing the price of cigarettes, due to the scourge of black market
Vincent Jennings, CEO of the CSNA. products. “The illegal market is now running at in excess of 20% - maybe even as high as 25% - which is greater than the market share of British American Tobacco,” said Jennings. “Were we to have the entirety of those sales of cigarettes, leaving aside legitimate duty free purchasing, it would lead to a significant addition to our tills.” In its submission to Government, Retailers Against Smuggling, the group set up to combat the illicit tobacco trade, pointed out that a pack of illegal cigarettes now costs as little as €3.20. Hiking the legal price above €8.55 would drive the market further into the hands of smugglers, they said.
www.retailnews.ie|November 2011|Retail News|5
News EU Code to Supersede Irish Code of Practice?
Retailers expect action against other criminal activities. Crawford called for a zero approach to crimes such as shop-lifting, fuel smuggling and petrol forecourt robberies. RGDATA’s Buckley said the Government should invest in the country’s policing. “We are concerned that petty criminals have a free pass because the Gardaí don’t have the resources to pursue or prosecute them. A lot of organised gangs are involved in what others might consider petty crime, but for the retailer, it’s a significant crime against their business.” Budget 2012 should resolve the issue of upward only rents, argued Fitzsimons. “They need to get their finger out: the legislation still hasn’t been published. After publication, it goes through five stages. There are a lot of people holding on for dear life.” Fitzsimons called upon the Government to modify business costs, a sentiment echoed by the BWG boss. “Tackle the issue of local
Kieran Tobin, Chairman of the Drinks Industry Group of Ireland.
government charges, including an unfair commercial rates regime, that in many cases are crippling retail businesses,” said Crawford. Frank Gleeson - Retail Ireland Chairman and Topaz Director - said the Government should think outside the box, implementing a new social welfare smart card system that people could use to spend in the domestic economy. Gleeson also called for incentives for firsttime buyers to get the property market back on its feet. Some economists argue that Ireland desperately needs an austere budget to further distinguish itself from Greece. Irish retailers, however, fear this could be at the expense of more jobs and businesses. “The irony is we can end up getting a tap on the head from the best boy or girl in the class and ending up with less people in work, fewer jobs, more retail closures, more vacant shops in our main streets and shopping centres,” concluded Tara Buckley. Meanwhile, RGDATA have urged Minister for Social Protection Joan Burton not to proceed with a sick pay proposal that will close down businesses and threaten thousands of jobs. “Furious shopkeepers who are struggling to keep their business afloat cannot believe this proposal to transfer responsibility for the first four weeks of sick pay from the State to individual employers,” said RGDATA Director General Tara Buckley. “They fear that this will be the final straw that will put them out of business and their staff out of jobs.”
NEW EU legislation, covering retailer and supplier relations, could supersede the proposed Irish Code of Practice, according to Retail Ireland. “There’s no need for an Irish Code of Practice if the European legislation is the right legislation,” Frank Gleeson, Retail Ireland Chairman and Topaz Director, Frank Gleeson, Retail Ireland Chairman and told Retail News. Topaz Retail Director. “Let’s wait and see what the Commission come up with and then review that. There’s no need to press ahead with our own Code until we see what Europe has on offer.” The proposed Irish code was primarily a supplierled initiative. Farmers, in particular, have been vocal in complaining about alleged margin-squeezing efforts of supermarkets. According to Gleeson, the EU proposal has involved a wider dialogue. “It appears much more balanced,” he said. “Our view would be anything coming out of Europe is probably more practical from an implementation perspective because it takes into account all the parties.” Gleeson added that there is little evidence for dubious retailer or supplier practices in Ireland, calling the relationship “very healthy”. Principal guidelines for the EU code of practice are likely to be released over the next three to six months.
FDII Rejects Broadcasting Recommendations AN industry food body has rejected the recommendations of the Broadcasting Authority of Ireland (BAI) about food advertising for children. Food and Drink Industry Ireland said the BAI’s desire to implement a UK approach to the Irish market was unworkable, since it classified products such as dairy and cereal as “unhealthy”.
6|Retail News|November 2011|www.retailnews.ie
News
Diesel Laundering Costing €150m and Growing ILLEGAL diesel laundering is costing the State at least €150m in lost revenue every year, according to Retail Ireland, who estimate that at least 12% of all diesel sold in Ireland is illegal. “Rising prices have encouraged criminals to exploit the substantial difference in price between diesel intended for agricultural use and for road use,” noted Retail Ireland Chairman and Topaz Retail Director, Frank Gleeson. Legitimate fuel retailers are already struggling to survive in a difficult economic market, argued Gleeson. “Their livelihoods are being threatened because they are being undercut by cheaper laundered diesel,” he said. “That money is going straight to criminals,” he told Retail News. “Legitimate retailers are making maybe 5c per litre on diesel sales, while sellers of laundered diesel are making up to 70c per litre.” Gleeson stated that in most cases, filling stations involved in the illegal trade are run by
individuals that are aware that the fuel they are purchasing and selling on to motorists is laundered. Some stations have been opened illegally on vacant sites specifically for this purpose. “There is a further negative knock-on effect for legitimate forecourt retailers as their stores suffer from the effects of fewer customers entering the premises and thus reduced ancillary sale of groceries,” he warned. “The inevitable consequence is fewer hours worked, job losses and in some cases, business closures.” In a submission to Government, Retail Ireland made the following recommendations to tackle the issue: • Equalise the duty rates for agricultural fuel and motor fuel. Such a move would help quickly diminish the illegal fuel trade as lower taxed fuel would not be available. • Introduce a reclaim system for agricultural fuel users. • Introduce a robust marker to agricultural gasoil that is
easily detected by Revenue, and employ an audit scheme from port to forecourt that offers traceability of the fuel product. The group also said premises selling diesel should be subject to the same licencing requirements as petrol is, under the Dangerous Substances Act, No. 10 of 1972, so that filling stations and sites selling illegal diesel can be closed and called for an increase in the penalties imposed on persons who engage in this criminal activity. According to Retail Ireland, the current fines are not a sufficient deterrent. Fines of €1,290 for offences
have been recorded but these small fines are not a sufficient deterrent to criminals as they are disproportionate to the vast profits being made. “Like the issue of tobacco smuggling, the fines are so low and the profits so large, there is little disincentive for smugglers,” noted Gleeson, who also called for further resources to be redeployed within the Customs Service and An Garda Síochána to tackle fuel laundering. “This would be selffinancing, would help reduce State borrowing and would put criminals out of business,” Gleeson concluded.
Access to Credit for SMEs to Ease ACCESS to credit for small businesses could become easier after a new bank application form was
launched. John Perry TD, Minister for Small Business, recently launched the Standardised SME Lending Application Form, for use in Allied Irish Banks and Bank of Ireland. “Businesses now have a clearer indication of what banks are looking for when they apply for credit and this should help speed up the application process,” said the Minister. Patricia Callan, Director, Small Firms
Association, told Retail News the form has been launched for pillar banks. She hoped that other banks, such as Ulster Bank, would come on board as well. “It reduces the regulatory burden and application time in filling out all the details,” she said. “Both banks can accept the same application form in the same detail. Traditionally, you would go in and discuss all this with your manager, and you never had to put pen to paper. They did all the paperwork and sent it off. Now, people have to
do that themselves. This new form will be an improvement, but as with all things, when you go through the process, they tend to come back and ask for additional information afterwards, if things are unclear, or they’re having difficulty stacking up the business case.” Callan added that the SME loan scheme, announced by Enterprise Minister Richard Bruton TD earlier this year, may not be implemented before the end of 2011, as was expected.
www.retailnews.ie|November 2011|Retail News |7
News
Grocery Market Remains Subdued THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending October 30, 2011, show the grocery market remaining relatively subdued, with a slight decline in value of -0.2%. “The gap between inflation and growth continues to be a major feature of the market as hard-pressed shoppers trade down to cheaper products to combat price rises,” explains David Berry, Commercial Director at Kantar Worldpanel. “Retailers are reacting to this by introducing new ways for their customers to save, such as promotional offers in store, voucher money-off campaigns and expanding their range of own-label products. “The impact of this activity can be seen through a widening gap in performance between the supermarket retailers and the smaller outlets. The
supermarkets have grown sales by 1.7%, with their share of the market reaching a record high of 87.7% this month. However, the smaller stores have seen their share decline to 12.3%, as they struggle to match the cost-saving measures and the new store openings of the supermarkets.” Dunnes Stores has delivered notable share growth this period, with an increase from 23.1% to 23.9%. This is its highest level of market share since March 2010 and has been helped by significant activity through its Value Club, which rewards customers through discount vouchers. Grocery inflation stands at 3.2% for the 12-week period, ending October 30, 2011, up from 2.8% in the previous period. See www.kantarworldpanel.com for more information.
THE FUTURE OF SWEETS
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New CEO Designate at GS1 GS1 Ireland has announced the appointment of Mike Byrne as CEO Designate. The current CEO of GS1 Ireland, Jim Bracken, will retire in April of next year, with Mike Byrne taking up his new role in GS1 Ireland in early 2012 after 10 years in ComReg. Commenting on the appointment, Tony Minogue, Chairman of GS1 stated that Byrne “brings a wealth of cross industry experience that will position GS1 Ireland well in the continued development of supply chain efficiency solutions initiated by Jim Bracken over the past number of years.”
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8|Retail News|November 2011|www.retailnews.ie
News
Musgrave Establishes New Operating Division MUSGRAVE Group plc has announced the establishment of a new operating division, Musgrave Operating Partners Ireland, which will run the Superquinn business. Tim Kenny, who was previously Group Finance and Business Development Director at Musgrave Group, has been appointed Managing Director of Musgrave Operating Partners Ireland, where he will be responsible for establishing the new division as well as the integration of the Superquinn business into the wider Musgrave Group. “The establishment of this new division is the first step in the gradual integration of the Superquinn business into the Musgrave Group. Superquinn will be run within Musgrave Operating Partners Ireland under the leadership of Tim Kenny,” said Chris Martin, CEO, Musgrave. “Tim was instrumental in the acquisition process and it is logical that he should now lead Musgrave Operating Partners Ireland. “We will now apply our considerable expertise to help stabilise a business that has been greatly challenged by changes in the marketplace in recent years,” Martin continued. “In a declining market, where consumers are spending less and continuously looking for value, Superquinn has struggled to retain market share. We believe that working with the Superquinn team we can tackle these considerable challenges and develop the business for the future.”
The integration of Superquinn into the Group is an important element of Musgrave’s growth agenda and will help sustain the Group’s overall competitiveness. Tim will be joined on the management team of Musgrave Operating Partners Ireland by Eoin McCormack, formerly Trading Tim Kenny, Managing Director, Musgrave Operating Partners Ireland. and Marketing Director of Musgrave Wholesale Partners, who has been appointed Trading and Marketing Director of Musgrave Operating Partners Ireland. Richard Collins has been appointed Finance Director of Musgrave Operating Partners Ireland and Clare Leonard as HR and Operations Director. Both previously held similar roles in Superquinn.
Healthy Eating Suffers in Recession CASH-STRAPPED consumers are turning to unhealthy foods in order to eat their way through the recession, according to a new study. Safefood, the North-South food safety body, revealed that 15% of the population, or one in six consumers, are living in food poverty. Ill health has been one result of people’s obsession with junk food. “Diet-related ill-health disproportionately affects those on a low income,” Dermot Moriarty, Safefood spokesperson told Retail News. As part of the study, Food on a Low Income, the group surveyed over 100 people, North and South. “They employed a coping strategy or mechanism for their food choices. For some people, their main priority was putting food on the table, not the nutritional content of the food. They had a specific budget in mind and they wouldn’t deviate from it. There were people who had an understanding of healthy eating, but the cost and convenience of accessing healthy foods in their own area was minimal,” Moriarty noted. The study also revealed the influence of children’s pester-power and a lack of motivation to cook. “Some parents would prioritise feeding their children over feeding themselves, so they would skip meals,” explained Moriarty. What kind of products are they buying? “Convenience food: frozen, ready meals or takeaways. We know from other research that often the local shop will not stock fresh produce because there’s no demand for it because of the wastage issue and price. There is an understanding and a misconception that healthy food costs more and is less convenient.”
Tobacco Focus From Ireland’s Leading Tobacco Company
Introduction of Lower Ignition Propensity Cigarettes What?
Lower Ignition Propensity (LIP) is a new tobacco regulation requiring cigarettes to comply with standards that increase the chances of a cigarette selfextinguishing when left at rest.
Why?
The new regulation has been introduced by the European Union and aims to reduce accidental fires occurring as a result of burning cigarettes being left unattended.
When?
The new standard will apply to all cigarettes across the European Union from 17th November 2011. LIP cigarettes have already been introduced in the USA, Canada, Australia and Finland.
How do LIP cigarettes work? The new cigarettes contain a specifically designed d cigarette paper that includes narrow bands which h in effect act as speed bumps. When smoked normally, ally, the cigarettes should not self-extinguish, however er they may self-extinguish if they are left at rest.
Less Air Flow Area More Air Flow Area
The taste and flavour of cigarettes will not be affected by the change. Adult smokers should ould find the same taste and flavour they have always enjoyed. The regulation only applies to cigarettes and does oes not extend to roll your own or other smoking products. cts.
Our cigarettes and tobacco products are produced to the highest standard of quality. If you are not completely satisďŹ ed with any of our products, please contact us on our free phone number.
1800 303 535
10|Retail News||November 2011|www.retailnews.ie
Industry News SuperValu to Open Dun Laoghaire Store
SUPERVALU is to open a new store in Dun Laoghaire Shopping Centre to become the new supermarket anchor for the facility. The store will begin recruitment locally for 70 new jobs, with the new supermarket expected to open before Christmas. The store will be owned by the centre owners and operated with the support of SuperValu and Eddie Kane of the Kane McCarthy group of SuperValu stores. The opening forms part of a €25m expansion programme announced earlier this year by SuperValu and its retail partners, which will create 400 new jobs across its 15,000 strong nationwide workforce by the end of 2011. Pictured are (l-r): Geoff Barry, newly appointed Manager, SuperValu Dun Laoghaire, and Eddie Kane of the Kane McCarthy Group.
New Look EUROSPAR Kilkenny EUROSPAR Kilkenny has launched its new look store, after BWG Foods and supermarket owners, the McCarthy family, made a €600,000 investment in upgrading the premises. Developments at the wholly Irish-owned store include a 5,000 square feet extension and total re-vamp of the existing floor space. The exclusive Baker’s Tray department has been relocated and extended, and additional refrigeration and shelving has been installed to accommodate an expanded product offering. All existing departments, including fresh fruit & vegetables, Russell & Ryan Butchery, hot and cold deli, off-licence, newsagents and general grocery sections have also been expanded and refreshed. Pictured are (l-r): Leo Crawford, Chief Executive, BWG Group; James, John & Margaret McCarthy, Store Owners; and Willie O’Byrne, MD, BWG Foods.
Dove Men+Care Lines Out with the ERC DOVE MEN + Care, the men’s personal care range from Unilever, has become the final premium partner for the 2011/2012 Heineken Cup, European Rugby’s landmark club competition. With its philosophy of being tough on sweat, not on skin, Dove MEN + Care makes a perfect partner for a sport which prides itself on displays of power within a gentlemanly context. “This partnership allows Dove MEN + Care to extend and solidify its existing reach within the rugby arena and is a natural extension of the brand, which combines powerful technology and care,” said Paul O’Connor, Dove MEN + Care spokesperson, pictured with Leinster captain Leo Cullen and coach Joe Schmidt.
M&S Champion of Champions
Gala Water is ‘Official Water Partner’ of The Apprentice
LOCAL poultry farmer Seamus Kane, who is a producer for Moy Park, Northern Ireland’s largest food processing company, has won the prestigious Marks and Spencer ‘Champion of Champions’ Farming for the Future award for his sustainable farming practices. The scheme recognises the world’s most innovative and forward thinking farmers. Seamus Kane, who produces chicken which is processed by Moy Park and sold under the M&S brand across the UK, is pictured receiving his award from Sue Bell, Technical Executive, Fresh Foods, Marks and Spencer.
GALA has been revealed as the Official Water Partner of The Apprentice 2011, The Apprentice ‘You’re Fired’ and will be featured on The Apprentice: Behind the Scenes on 3e. In a product placement deal, the water was first seen on TV screens on Monday, October 10, with Gala branded glasses appearing on the set of ‘You’re Fired’. Produced by Monaghan-based company, Celtic Pure Ltd, Gala Water is one of the Group’s top selling own brand products and is on target to sell 1.5m bottles in 2011. Pictured are the proprietor of Celtic Pure Ltd, Padraig McEneaney; Gary Desmond, CEO of Gala Retail Services; and Jimmy Burns, Sales Manager at Celtic Pure.
MACE is the longest established convenience shopping brand in Ireland. We’ve been making people’s lives easy since 1960. Now is a great time to move to MACE. Get unrivalled support from the MACE team, benefit from our nationwide advertising and local in store support. Add our unbeatable buying power, exclusive access to the competitively priced MACE own brand range and you’ll always have that crucial competitive edge.
Be a part of the MACE success story – it all adds up to more profit for you. Call John Tully 086-8189312 and Liam Attridge 086-8521362. www.mace.ie
12|Retail News|November 2011|www.retailnews.ie
Industry News SuperValu Blooms for Christmas SUPERVALU has signed a new agreement worth over €335,000 with Dublin based company Uniplumo to supply Poinsettias for the Christmas season. As a result, SuperValu will only stock 100% Irish Poinsettias this Christmas, which will retail at just €3. The deal is the latest in an established partnership between both companies, worth over €1,250,000 in retail sales and which has seen the volume of Uniplumo’s business with SuperValu increase by 40% over the past three years. Pictured amongst the flowers at the Uniplumo farm in Swords, Co. Dublin, is Anna-Rose Pitt (aged 2).
Good Results at Anuga 2011 THE 31st Anuga saw more than 155,000 trade visitors from 180 countries visiting Cologne to experience the product range presented by the event’s 6,596 suppliers from 100 countries. “Anuga 2011 is the world’s most important trading platform for food and beverages — this was once again confirmed by the activity at the trade fair,” said Gerald Böse, Chief Executive Officer of Koelnmesse GmbH. “In its role as a summit meeting of the international food industry’s leading professionals and government officials, Anuga also plays a key role when it comes to addressing the sector’s current agenda and the topics of the future.” The next Anuga will take place from October 5- 9, 2013. See www.anuga.de for more information.
Maxol and BWG Foods Agree €225m Deal
THE Maxol Group and BWG Foods, operators of the MACE brand, have announced agreement to extend their forecourt partnership for another five years. The value of the contract is €225m and it will result in the launch and roll-out of a new Maxol MACE dual forecourt brand, which will combine the widespread Maxol company-owned service station network with the expertise and high profile that comes with the MACE convenience store offering. At the heart of this new agreement is the plan to co-brand the c-stores on Maxol forecourts under the Maxol MACE banner. The first example of this new approach has just been launched at Maxol’s recently redeveloped service station in Wilton, Cork. Pictured at the new Maxol MACE dual brand launch are (l-r): Brian Donaldson, General Manager, Marketing & Retail, The Maxol Group; Leo Crawford, CEO, BWG Foods; Tom Noonan, CEO, The Maxol Group; and Willie O’Byrne, MD, BWG Foods.
SPAR Stars on Fair City
Centra Launches New App
CENTRA has put convenience top of the menu, with the development of an exciting new free iPhone and Android App which offers delicious recipes for breakfast, lunch and dinner. Once downloaded for free, a simple shaking of your smart phone and Centra’s new recipe App will provide fresh, quick and easy meal ideas with easy to follow stepby-step instructions. Some 50 recipes have been carefully developed to suit every palate and every occasion, with an emphasis on taste and simplicity, as all dishes can be prepared from everyday ingredients and served up in minutes. Consumers’ favourite recipes from the Centra App can be shared with friends and family via Facebook, Twitter and Email, and users can also create a shopping list to remind them of what ingredients they need or check out what’s currently on offer in their nearest Centra store.
RTÉ Television and BWG Foods have announced a first for RTÉ television sponsorship, with an agreement to open a SPAR store on the set of Ireland’s most popular home-grown soap, Fair City. The agreement, which is part of an overall marketing investment of €900,000 over the next three years, will see Christy Phelan’s corner shop transformed into a state-of-the-art SPAR store over the coming weeks. “SPAR has been an integral part of local Irish communities right across the country for nearly 50 years now, so it seemed only natural that we would extend this presence to one of the best known local towns on Irish television. We’re delighted to have reached agreement with RTÉ on what is an innovative and pioneering sponsorship for Irish television - one that will bring the SPAR brand directly to over 500,000 viewers across Ireland four times every week. We look forward to welcoming Christy to under the tree at SPAR,” noted Willie O’Byrne, Managing Director, BWG Foods, who is pictured (left) with Rose Hederson (Val), Ryan Andrews (Sean), Jane Gogan, Commissioning Editor, Drama, RTÉ Television and Tom Hopkins (Christy Phelan).
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Industry News Massive Success for Masi Wines ‘MR Amarone’ himself, Sandro Boscaini, of Masi Wines (pictured) delighted guests recently with a spectacular wine dinner for members of local restaurants, hotels and off licences in One Pico, Dublin 2. Sandro Boscaini is the current president of iconic Italian wine producer Masi and widely credited with being the unofficial spokesman of the Veneto, the historic Italian wine region which covers such iconic wines such as Amarone, Valpolicella, Bardolino and Soave. Guests tasted a variety of wines from the Masi stable, including Masi Masianco, Campofiorin and the infamous Costasera Amarone 2007 and 1988 vintages.
SPARTAN Challenge THE 2011 SPAR SPARTAN Challenge recruited 26 marathon novices from 26 counties to take part in the 2011 National Lottery Dublin City Marathon on October 31. Over the past four months, the SPARTANS trained relentlessly for the Bank Holiday race under the guidance of fitness guru Karl Henry and dietician Paula Mee, completing all three of preparation races, 5 mile, 10 mile and half marathon, on top of countless training miles. Each SPARTAN recorded the highs and lows of their marathon training and preparation races in a personal blog on www.spartanchallenge.ie, where members of the public can track their progress and training runs and those interested in taking up jogging can benefit from motivational, nutrition and exercise tips from Karl and Paula. Pictured are (l-r): Thomas Ennis, SPAR Merrion Row; Ronan McDermott, SPAR Dolphins Barn; Eddie Glennon, Glennon Group; and Marnus Botha, Manager, SPAR Tonlegee Road.
Corona Cork Film Festival: the Reel Deal
THE Corona Cork Film Festival took place across eight days and eight nights recently, and included an eclectic mix of big budget pictures, world cinema, innovative independent films, documentaries and short films from all over the globe. In attendance were Michael and Kathleen Barry of Barry & Fitzwilliam, distributors of Corona Extra and title sponsors of the event for the 5th consecutive year, along with Corona girls Katie Barry and Lisa Jordon. “With screenings at high-profile venues such as The Cork Opera House and the Gate Cinema, along with a plethora of fringe events, the festival is now one of the South’s premier festivals,” noted Michael Barry (left), who is pictured with Festival Director, Mick Hannigan.
IFEX 2012
Irish Distillers Star in Whisky Bible
IFEX 2012 takes place from April 24-26, 2012, at the King’s Hall and Nugent Hall, Belfast. A must attend event attracting in the region of 5,000 buyers and key decision makers, IFEX is the perfect place to meet customers and potential buyers faceto-face. IFEX attracts visitors from the wholesale, manufacturing, retail, catering and pub/club/restaurant/hotel trade. Exhibitors already signed up include companies like Pallas Foods, Silver Hill, Hendersons Foodservice, Lynas and Stephens Catering. Some exhibition space is still available, from £155 per square metre. For more information, contact Caroline McGuinness in easyFairs on 0044 28 90683331.
IRISH Distillers Pernod Ricard, makers of the world’s number one Irish whiskey, Jameson, are celebrating having been awarded the Irish Whiskey of the Year and Irish Blend of the Year awards by leading whiskey writer Jim Murray in his 2012 Whisky Bible. After tasting more than 1,500 whiskies from around the world, Murray named the newly launched Powers John’s Lane Release his Irish Whiskey of the Year, describing it as “pot still at its most embracing and magnificent” and “certainly one of the top five world whiskies of the year”. Jameson Rarest Vintage Reserve was named Irish Blend of the Year, with Murray quoted as saying it was “a truly great whiskey, among the pantheon of the world’s finest.” Jim Murray (right), author of the Whisky Bible, is pictured with Barry Crockett, Master Distiller, Irish Distillers Pernod Ricard.
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Marketplace International Bord Bia’s fourth Marketplace International event takes place on February 7, 2012, and will allow trade buyers to meet in excess of 170 Irish food and drink suppliers.
Bord Bia Event to Generate
€15m in New Business BORD Bia, the Irish Food Board, is hosting its fourth Marketplace International event on February 7, 2012, in the National Convention Centre, Dublin. This one-day ‘speed dating’ event provides a unique opportunity for trade buyers to meet in excess of 170 food and drink suppliers. Bord Bia will host over 350 domestic and international buyers, who are attending the event to have one-to one meetings with the Irish supply base. The aim is to secure €15m in new business from the one-day event.
The Benefits
Marketplace International offers buyers a unique experience, including: •
A showcase of over 170 Irish suppliers, including craft and artisan companies, representing a broad range of product categories, enabling buyers to fast-track their
•
• • •
research of new suppliers; Bespoke one-day itineraries tailored to individual requirements, guaranteeing a minimum of 10 short introductory meetings with potential suppliers; The opportunity to network with 380+ industry peers; The chance to be the first to market with product, pack and format innovation; Attendance is free.
Reasons for Optimism
Irish food and drink manufacturers across all categories remain optimistic, according to Bord Bia’s recent food industry survey (August 2011). Indeed, 80% of the companies surveyed viewed the prospects for their business as improved or very much improved, compared with this time last year, with almost 70% reporting an increase in sales.
Diverse Range of Irish Foods Marketplace International is a must attend, one-day event for buyers looking to discover the diverse range of Irish foods that are skilfully produced by families of farmers and producers in every corner of the country. Attendees will meet a new generation of Irish food producers who share a pride for the unique character of their local region, a deep respect for nature and a passion for pure ingredients.
To register, please visit: www.marketplaceinternational.eu. Please contact Gillian Swaine on 01 6142291 or email Gillian.swaine@bordbia.ie for further information.
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Shop Profile Thomas Ennis’ brand new SPAR store on Dublin’s Mount Street is the latest in a line of top quality stores owned by the entrepreneur. Pictured outside the new SPAR store on Mount Street, Dublin, are (l-r): Sandra McCormack, General Manager of the Group; Thomas Ennis, owner; and Joanna Staron, Store Manager.
SPAR Scores on Mount Street Opening a brand new store in the midst of the biggest recession the country has seen in decades may not be everyone’s idea of a calculated risk. But for retailers of the calibre of Thomas Ennis, the economic conditions around the country present opportunities as well as difficulties. The enterprising store owner, who already owns a number of symbol group shops, including the award-winning SPAR on
Merrion Row in the heart of Dublin, has just opened his latest venture, the brand new SPAR on Mount Street in Dublin city centre. Thomas is not lacking in retail experience, having worked with a host of retailers that excel in their areas of expertise, including butchers FX Buckley, Superquinn and a number of symbol group shops, where he worked his way up to manager. However, Thomas always knew he would open his own shop and in 2005 he opened his first, SPAR Merrion Row. At that time, elements such as the juice bar and sit-down coffee area were hugely innovative, with the result that SPAR Merrion Row won a host of awards and helped to set standards for other shops. Thomas formed an excellent working relationship with BWG and the SPAR Group, which saw him open a further four stores, including SPAR Celbridge (2008), SPAR Baggot Street (2010), MACE Mespil Road (2011), and now SPAR Mount Street. Thomas explains how he has managed this extremely impressive record of shop openings during the current climate.
“I think the most important thing in being successful in retail is you need to know exactly what you are doing and love what you are doing,” he enthuses. “I have a lot of experience in retail and I know what customers want: they want great service, a quality product and value for money. The recession has not changed those wants much, except that value is now more important. People still expect great service and quality produce as a minimum requirement for repeat custom.”
Shared Vision
Thomas’ biggest asset has been the level of support and indeed the shared vision between himself and his symbol group partners: “BWG and SPAR have a fantastic wealth of knowledge and experience in grocery retail and I have always found that working with the Group has added value to my businesses and contributed to my success. The SPAR brand is very well known and trusted. Strong national advertising is promoting the value offered across the SPAR brand at the moment. Round euro pricing is very
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Shop Profile technology is so good that we know precisely how much of any product is on the shelves at any given time. The ordering and delivery systems are so good that I do not need to tie stock up in storage at the rear of the shop and this helps keeps costs down and stops me having to tie up funds, keeping stock where it cannot be sold.”
Strong Grocery Sales
popular with customers. Along with that, customers know and trust the brand, they know what they will find under the tree at SPAR.” The shop on Mount Street is located in the ground floor unit of an office building. Originally designated as office space, Thomas had to make some significant alterations to the layout. In partnership with SPAR, Thomas created an excellent internal layout: full length windows at the front allow significant amounts of natural light into the shop; eye level shelving keeps the interior from feeling cluttered; and the immaculate SPAR image gives the top quality produce on offer the perfect setting. According to Thomas, “The shop looks fantastic inside and out. I would expect nothing less from working with SPAR. One of the up sides to the current climate is that the cost associated with opening a new shop has reduced. I got a very competitive price for the rent, since the ground floor was unoccupied. A lot of the units are reconditioned in the shop, meaning they are in great condition but cheaper than the brand new equivalent.” Keeping control of costs is critical when it comes to maintaining margins and delivering profitability. Thomas is using the advanced IT and EPOS systems in the Mount Street shop to great effect: “We don’t store stock in this shop. Everything we have is on the shelves and ready to sell. EPOS
While its location among the offices of Mount Street would suggest that the shop functions purely as a city centre high convenience store, Thomas and SPAR learned quickly after the shop opened that grocery sales were very strong. Not only were customers living in the area taking advantage of the value offers in the shop and the SPAR own brand products, Thomas has also noticed people working in the area purchasing bread and sandwich ingredients to make sandwiches in the office. Thomas and the team from SPAR quickly reacted to this unexpected, but very welcome additional demand, by reworking the planogram and category management in the shop. Having agreed realistic trading targets for the shop in its first months, SPAR Mount Street is already trading above expectations in all areas.
Offering a Career Path
Thomas knows grocery retail inside and out and he expects his staff to be every bit as competent.
“The selection of staff is absolutely critical,” he explains. “If staff are unfriendly or unable to do their job properly, standards fall very quickly and customers will not come back. SPAR has a very strong focus on staff training, as do I. A benefit of having a number of shops is that I can retain staff and offer a career path. Whenever possible, I promote from within. It gives staff confidence that if they work well with me, they will certainly progress.” Thomas has found fantastic staff, a great partner in the SPAR group and he himself has a passion and a love of grocery retailing that has allowed him not only to be successful during the economic downturn, but to thrive. He is creating employment, providing amenities to local communities and proving that the right entrepreneurial attitude can deliver success, even in challenging times.
Fact File Owner:
Thomas Ennis
Location:
Mount Street, Dublin 2
Size:
250 square metres
Number of Staff: 22, full time and part time Opening Hours: 07:00-22:00, Monday-Saturday; 08:00-20:00, Sunday
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Retail News Interview
Where to Now
for Retail?
As Minister for Jobs, Enterprise and Innovation, Richard Bruton TD is the man most retailers are looking to for guidance out of the recession. Retail News Editor John Walshe questions the Minister on the big issues facing the trade, from the abolition of the JLC’s to the proposed Code of Practice. What do you feel has been achieved by the Government since you came into office in terms of helping Ireland’s beleaguered retail industry?
The Government is very conscious of the vital role that the retail sector plays in the national economy. The Government is also aware that the retail sector is operating in a very challenging environment. Since taking up office, the Government has sought to improve competitiveness and increase access to finance. Specific initiatives have included initiating reforms to the Joint Labour Committee and Registered Employment Agreement wage settling mechanisms, improving transparency in the rental market, encouraging local authorities to reduce their charges to businesses, and stabilising the banking system to enable it to return to providing credit to businesses. These measures are targeted at removing obstacles to jobcreation and job-retention and thereby helping labour intensive sectors such as the retail sector to create the jobs that our citizens so badly need. It is encouraging to see the National Competitiveness Council’s report of June 2011 on Costs of Doing Business in Ireland, which showed that the Irish economy continued to
improve in its competitiveness. The Government is fully committed to take the necessary measures so as to ensure that this necessary improvement in competitiveness continues.
The retail grocery sector is a massive source of employment in Ireland. How do you propose to help increase employment in this sector? I am very conscious of the role the retail sector plays in providing employment for many thousands of people in Ireland. The retail and wholesale sectors collectively employ approximately 265,000, or 15% of our workforce. The retail sector, like many other businesses, has suffered due to the downturn in the last few years. However, the Government’s Jobs Initiative of last May was designed to restore confidence in the Irish economy, stimulate demand and help maintain jobs and create new ones. While our exporting sector is performing really well, we have to continue to find ways of stimulating demand in the domestic economy. I am currently working on developing a Jobs Strategy which will explore what more we might do in this area. I hope to be in a position to publish the Jobs Strategy early next year.
Many small businesses, including grocery retailers, feel they cannot increase staff levels due to the high costs of doing business in Ireland. The cost of labour, in particular, is extremely high here. The recent High Court ruling which found that JLC rates were unconstitutional, was broadly welcomed in the trade. However, many industry commentators feel that reform of the JLC system doesn’t go far enough and that it should be abolished. Where do you stand on this debate?
On July 26, 2011, the Government agreed a package of radical reforms to the Joint Labour Committee and Registered Employment Agreement wage settling mechanisms. The reform proposals arise from the findings of the Independent Report on the JLC/ REA systems (Duffy/Walsh report) as well as the outcome of the recent High Court ruling in the Grace Fried Chicken constitutional challenge. The fact that the process of making EROs has been found by the High Court to be unconstitutional, together with the identified lack of adequate Oireachtas scrutiny of this process, only
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Retail News Interview underscores some of the main features of the recommendations for reform that were put forward by the Independent Review Report on these statutory wage setting mechanisms. The Duffy/Walsh report found that these systems require radical overhaul so as to make them fairer and more responsive to changing economic circumstances and labour market conditions. The package of reforms arising from that report represents a fair and balanced solution to that need. The proposed measures will provide for the retention of the JLC and REA systems, subject to the reforms that are required to place them on a more secure legal and constitutional footing. They will ensure that proper protection is restored to workers in these sectors, while also radically reforming and streamlining the systems so as to ensure that they are no longer an obstacle to job creation and job retention. They will also reinstate a robust system of protection for workers in these sectors in the aftermath of the recent High Court ruling. Heads of a Bill to give effect to the these reform proposals have been prepared by the Department of Jobs, Enterprise and Innovation, agreed by Government, and communicated to the Attorney General, who has agreed to give the highest priority to drafting this legislation. It is intended to have a Bill ready to introduce to the Oireachtas shortly.
Some retailers have argued that the main problem with JLC rates is that they treat small, independent stores (many of whom are struggling) the same as large multiple retailers, and have called for a separate rate that could be based on size or turnover. What is your view on this? The specific contents of any individual Employment Regulation Order, including the one covering the Retail Grocery sector, is a matter for the members of the JLC itself to determine. However, I am aware that on a number of occasions in recent times, the Retail Grocery JLC has demonstrated, through agreement on deferring previously agreed increases, good examples of the responsiveness of both employers and the trade unions to the significant trading difficulties experienced by smaller, independent operators and the continued sustainability of employment in the sector. I would encourage the JLC members to continue to work together
U til it y B ills Rates Rising Fuel Prices Below COST SELLING
RENT LEGISLAT ION CODE OF PRACTICE
JLC REFORM ACCESS TO CREDIT
to find practical solutions to the economic problems we face on the basis of agreement among those directly involved. The legislation currently being drafted will also facilitate radical overhaul of the JLC system, so as to make it fairer and more responsive to changing economic circumstances and labour market conditions.
Another massive cost is rent, with a large proportion of landlords either refusing to engage with tenants on rent reductions or imposing upward-only rent reviews. The Government has proposed to reform and streamline landlord and tenant law for businesses. What changes do you expect to happen and when might we see their effect?
Rental costs are an important factor for the competitiveness of businesses in the economy. Over recent years, upwardonly rent reviews kept rents for many businesses at an artificially high level, despite the fall in property values and open market rental trends. Under the Land Conveyancing and Law Reform Act 2009, upward-only rent reviews were abolished for all new leases signed on or after February 28, 2010. Under Section 132 of the Act, rents can now decrease, remain the same, or increase if appropriate, on review. The Land Conveyancing and Law Reform Act does not apply to the review of rent on contracts entered into prior to February 28, 2010. However, the Programme for Government expresses our intention to legislate to end upwardonly rent reviews for existing leases. The Minister for Justice and Law Reform, Alan Shatter TD, is currently examining this matter in conjunction with the Attorney General. I would also urge businesses in the retail sector to make use of the ‘Rent Review Arbitration Code’, which
was drafted by the Working Group on Transparency in Commercial Rent Reviews. The aim of this Code is to make the arbitration process more straightforward, particularly for those, like independent retailers, who may only rarely be involved in rent reviews and arbitration proceedings. The Code is intended as an addition to the Arbitration Act 2010. It cannot override the mandatory provisions of the Act, nor can it not override any specific provisions in a lease. However, it provides a mechanism to deal with disputes on commercial rents.
Many retailers are struggling to pay Local Authority Rates, which they feel are excessive in the extreme. How can this issue be addressed?
The setting of commercial rates is primarily a matter for Local Authorities, which come under the remit of the Minister for the Environment, Heritage and Local Government. The levying and collection of rates are matters for each individual Local Authority. Results from a review carried out by the Department of the Environment, Heritage and Local Government on commercial rates for 2011 show that nearly all Local Authorities decreased their annual rate on valuation this year, or kept the same rate as 2010. This follows a similar pattern to last year, when 31 Local Authorities reduced their ARV and 55 maintained the same ARV as 2009. While this is positive news, I am keen to ensure that all costs which impact on businesses, including Local Authority rates, are kept as low as possible, in order to ensure a competitive business environment and to support economic recovery. In this context, I am in ongoing contact with my Ministerial colleagues on the need to keep business costs to a minimum.
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Retail News Interview Many retailers feel rates are unfairly calculated, in that they are based on store size rather than turnover. Surely a rural store with low footfall and consequently low turnover is at a disadvantage when compared to a small, high density urban store? How can this be addressed?
Local Authorities levy rates on any property used for commercial purposes in accordance with the details entered into the valuation lists prepared by the independent Commissioner of Valuation. The Annual Rate on Valuation (ARV) is applied to the valuation of each property to obtain the amount payable in rates. The ARV is decided by the elected Members of each Local Authority in the annual budget, and its determination is a reserved function of the Local Authority. The issue of changing the basis on which rates are charged, from a flat rate to a progressive rate, would be a policy matter for the Minister for the Environment, Heritage and Local Government, in consultation with the Local Authorities and the Minister for Finance. As I have mentioned, I have had detailed discussions with Minister Hogan on how we can keep all costs which impact on business as low as possible.
The energy market is another source of high costs. Recent moves, such as the impending cost increases from both ESB and Bord Gáis, will put added pressure on already stressed retailers and suppliers. What more can be done to ensure Ireland’s energy costs are in line with our European neighbours? The Sustainable Energy Authority of Ireland published a report in July on electricity and gas prices in Ireland, based on EUROSTAT data. This report includes an analysis of trends in energy costs for businesses. While the report is detailed, the main findings are that, following reductions in electricity costs for businesses in 2009 and the first half of 2010, there was upward pressure on prices during the second half of 2010. Notwithstanding the increases, Ireland’s electricity costs remained below the EU average for medium to large business consumers, but above the average for small business consumers. I am conscious that energy costs have continued to
rise this year for domestic, as well as business, customers. International fuel prices impact significantly on electricity costs and we have seen a big increase in the price of oil in the last year which pushes through into energy costs. The Government has no role in setting electricity prices – only certain segments of the market are regulated by the Commission for Energy Regulation, which is under the remit of the Minister for Communications, Energy and Natural Resources. However, I recently met the Regulator and asked that there be a clear distinction made between the elements of energy pricing within our control, such as the network costs, and those that lie outside it.
The spiralling cost of fuel is another major factor affecting the Irish grocery industry, and not just in terms of forecourt retailers, but also in increased supplier distribution costs. Would the Government consider temporary tax relief on fuel, while uncertainty around oil supply artificially inflates fuel prices?
The rise in oil and fuel prices over the last year has affected all sectors of the economy. I can understand the challenges that this increased cost places on the retail sector in an already difficult trading environment. Any policy decision related to tax relief on fuel would be a matter for the Minister for Finance to consider in the context of the Budget.
Access to credit has been a major problem for retailers, since the economy went into recession. On one hand, the banks insist they are offering loans to SMEs, and yet the figures from organisations like ISME suggest that it is now harder to get credit than ever before. What can the Government do to ensure that our small businesses, the lifeblood of our economy, can access the necessary credit in order to survive? The initiatives taken by the Minister for Finance to restructure and re-capitalise the banking system represent the principal response to making credit available. At the end of
March 2011, a range of measures was announced to reorganise, recapitalise and deleverage the domestic financial system in order to restore the banks to health and continue to provide a secure banking system for deposits. This latest restructuring of the domestic banking sector creates capacity for the pillar banks to lend in excess of €30 billion over the next three years in SME and other important sectors. This is in excess of Central Bank estimates of the likely demand for SME and mortgage credit over this period. Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks will be required to sanction lending of at least €3 billion this year, €3.5 billion next year and €4 billion in 2013 for new or increased credit facilities to SMEs. In addition to the initiatives of the Minister for Finance, work is underway within my Department on the design of a Temporary Partial Credit Guarantee Scheme. The Scheme will provide a level of guarantee to banks against losses on qualifying loans to job-creating firms to get banks lending again to industry and entrepreneurs. This Scheme will be closely targeted at commercially viable, well performing companies that have a solid business plan and a defined market for their products or services which can demonstrate repayment capacity for the additional credit facilities but which do not secure credit facilities due to the following two market failures: insufficient collateral for the additional facilities; and growth/ expansionary SMEs, which due to their sectors, markets or business model, are perceived higher risk under current credit risk evaluation practices. A loan guarantee would be provided by the guarantor (the State) to the lender, under strict criteria to target the identified market failure, thereby facilitating the outflow of additional credit from the banks. The scheme will be introduced on a temporary basis, with a review after year one, before any commitment is given to extending the scheme for a further period of time. This scheme will form a key component in the suite of initiatives aimed at ensuring the flow of credit. Furthermore, in line with the commitment in the Programme for Government, a Microfinance StartUp Fund to provide loans to small businesses is being developed. My
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Department is also taking the lead on this initiative and has met with relevant stakeholders, including the European Investment Bank, organisations with experience in the area of Microfinance in Ireland, as well as with the relevant Government Departments. The Fund, including scheme design and appropriate delivery mechanisms, will be developed with a view to formalising proposals in the context of Budget 2012.
There has been some talk over the last 18 months of re-introducing the Groceries Order, which banned below cost selling. Has the Government any plans to look at this issue?
The Groceries Order did not act as a ban on below-cost selling but rather as a ban on selling below net invoice price. The Government does not currently believe there is any justification for re-introducing the Groceries Order.
Many suppliers and the organisations which represent them, such as Food and Drink Industry Ireland, have repeatedly called for the introduction of a Code of Practice for the retail sector in its dealings with suppliers and an ombudsman to oversee disputes. Has the Government plans to examine this issue; is it something you would like to see happen and why?
A facilitator was appointed to explore with relevant stakeholders the possibilities of agreeing a Voluntary Code for the Grocery Goods Sector. The facilitator has since presented his report on his facilitation efforts. Unfortunately, despite the best efforts of the facilitator, it was not possible to secure agreement among stakeholders in relation to the development of a Voluntary Code. The facilitator also included a draft outline of a possible Code as part of his report. Following on from the outcome of the facilitation process, I stated that I would proceed to implement the commitment in the Programme for Government to regulate unfair practices in the grocery goods sector. It is intended to give effect to this commitment by including a specific provision in the legislation being prepared to merge the National Consumer Agency and the Competition
“
Retail News Interview
The retail sector has a vital role to play in restoring the fortunes of the economy, particularly the domestic economy. The evidence shows that choice and value for money have become the primary determinants for consumers in relation to shopping transactions. Authority, to allow for the introduction of a statutory Code of Conduct in the grocery goods sector. As part of implementing the commitment in the Programme for Government, I launched a public consultation in the summer seeking the views of all interested parties in relation to the outline draft Code prepared by the facilitator. The responses to the consultation are currently being considered by my Department and will help to inform the framing of the legislation to allow for the introduction of a Statutory Code. It is expected that this legislation will be published early in 2012. I am aware that the issue of the relationship between retailers and suppliers is also the subject of debate in Europe generally and this is being monitored by my Department.
Retailers are under pressure to cut prices to cashstrapped consumers, and this in turn puts pressure on Ireland’s food supply and manufacturing base to drop their costs, with many suppliers arguing that they cannot cut costs any more without going out of business. How can the Government help businesses to find a balance between value and economic sustainability? The Government is committed to ensuring that Ireland continues to have sustainable agrifood and retail sectors. The implementation of the commitment in the Programme for
”
Government to regulate unfair practices in the grocery goods sector by means of a Code of Practice is intended to achieve a fair balance in the relationships in the grocery goods sector, taking into account the interests of all stakeholders, be they suppliers, retailers, or indeed, consumers.
In general terms, how do you feel Ireland’s indigenous retailers can help to lift the economy out of recession? As I have already stated, the retail sector is a very important sector of the national economy and indeed is a bellwether sector in terms of the health of the economy. The retail sector has a vital role to play in restoring the fortunes of the economy, particularly the domestic economy. The evidence shows that choice and value for money have become the primary determinants for consumers in relation to shopping transactions. Retailers, therefore, must continue to be innovative in terms of the choice of goods and products that they offer to consumers and equally to ensure that consumers are offered such goods at the best value for money possible.
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Gala Annual Conference
Gala’s annual conference saw the group unveil its plans to help retailers go the extra mile in attracting new customers and adding value in-store. Pictured at the Gala Annual Conference are (l-r): Gary Desmond, CEO, Gala; keynote speaker Gerry Duffy, author of ‘Who Dares Runs’; Simon Coveney TD, Minister for Agriculture, Food and the Marine; and Liam Peters, Chairman, Gala.
Gala Goes the Extra Mile MORE than 200 retailers attended the Gala Annual Conference, held recently at the Lyrath Estate, Kilkenny, which saw the group unveiling plans to go the ‘extra mile’ for retailers and to help Gala retailers go the ‘extra mile’ in attracting new customers and adding value in-store. Gala CEO, Gary Desmond, launched a number of new concepts to Gala retailers, including the introduction of
Gala’s new gift card, the development of the Gala app and unique in-store product offerings, following the successful introduction of ‘Baker’s Corner’ at the 2010 Conference. “In just over one year, the highly successful ‘Baker’s Corner’ concept, delivered in partnership with O’Brien’s Ingredients, is now housed in over two thirds of Gala stores,” explained Gary Desmond. “‘Baker’s Corner’ has
driven new customers to Gala and offers quality, home baked products that are going down ‘a treat’ with Gala customers. We are developing unique concepts for Gala stores that will help to drive footfall, increase profits and create a strong point of difference for Gala retailers.” Retailers were also briefed on how the Group has performed to date in 2011. Despite the challenging trading
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Gala Annual Conference conditions, Gala has seen a marginal net gain in store numbers this year, with 50% of new Gala stores migrating from other symbol groups. In 2012, Gala is hoping to attract many new retailers, in part due to the strength and unique characteristics of the Gala business model, which Gary Desmond feels “is well placed to attract new retailers in today’s climate. Highly competitive members’ fees, combined with the dual support of Gala Head Office and our local wholesalers, enables retailers to benefit from lower costs and the ability to react quickly to consumer demand.” Explaining how the Gala model has been extremely well received over the past few years, the CEO highlighted the fact that 19 new retailers joined the Gala Group in 2011: “We now have a robust group of dynamic retailers who are all committed to excellence in retailing. We have ambitious plans for the next few years.”
Official Opening
Gala’s ‘Going the Extra Mile’ 2011 Conference was officially opened by Simon Coveney TD, Minister for Agriculture, Food and the Marine, while the keynote speech was delivered by Gerry Duffy, motivational speaker and author of ‘Who Dares, Runs’. Following the morning session, Gala retailers visited the trade fair, which was home to over 60 exhibitors, with many offering special value-formoney deals for orders taken on the day. The feedback from suppliers has
Andrew and Janet Durkan from Durkan’s Gala, Louisburgh, Co. Mayo, receive a Gold Award from Gala National Sales Manager, Jerry McDonnell, and Nestlé Ireland’s Diarmuid Murphy.
been very positive, following on from the trade fair exhibition.
Gala Event
The annual Gala B.E.S.T stores, sponsored by Nestlé Ireland, were announced at the evening’s ‘gala’ event. Gold, silver and bronze awards were announced by MC, Neil Delamere, in addition to seven category awards for specialisms in retailing. Six gold, five silver and 21 bronze accolades were awarded by the Group, with
Michael Larkin from Larkin’s Gala, Ballina, Co. Tipperary, receives his Gold Award from Jerry McDonnell, Gala, and Diarmuid Murphy, Nestlé Ireland.
these stores now acknowledged as the B.E.S.T stores in the Gala Group. Following two separate independently-audited store assessments by QHS under the Gala B.E.S.T (Business Excellence Standards Tool) programme, the stores honoured have demonstrated their commitment to retailing, and their B.E.S.T awards will rubber stamp the ‘second to none’ customer service, standards and efforts that each of the wining stores makes day in, day out.
Cathal Byrne from Byrne’s Gala Express, Longwood, Co. Meath, receives a Gold Award from Jerry McDonnell, National Sales Manager, Gala Retail Services, and Diarmuid Murphy from Nestlé Ireland.
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Gala Annual Conference
Liju Varughese from Tuffy’s Gala, Ballina, Co. Mayo, picks up a Gold Award from Jerry McDonnell, National Sales Manager, Gala Retail Services, and Diarmuid Murphy from Nestlé Ireland.
Pictured receiving the Gold Award for Kehoe’s Gala, Ballycullane, Co. Wexford is Jannette Sinnott, with Jerry McDonnell, National Sales Manager, Gala Retail Services, and Diarmuid Murphy from Nestlé Ireland.
Monica O’Shea from Dunne’s Gala, Cahirciveen, Co. Kerry, accepts a Gold Award from Jerry McDonnell, Gala, and Diarmuid Murphy, Nestlé Ireland.
“It was becoming increasingly difficult to determine the ‘best’ store in the Gala Group as so many of our stores were making huge efforts,” stressed Gary Desmond. “The assessments from QHS clearly illustrated the progress of many of our stores and we wanted to ensure that all retailers received the accreditation that they deserved. Our new structure gives
stores across the Group clear direction of where they’re going and what they need to aim for.” Congratulating the award winners, the CEO noted how the six Gold store winners “operate at a consistently high level, and deliver ‘second-tonone’ retailing”. He also highlighted the Silver award winners, describing it as a great achievement for the five stores, who he predicted will have their sights firmly set on Gold for 2012, when he predicted the group would double the amount of Gold and Silver accolades. He also paid tribute to Nestlé Ireland, B.E.S.T programme sponsor for the second year in a row. Presenting the awards were Jerry McDonnell, National Sales Manager, Gala Retail Services, with Diarmuid Murphy from Nestlé Ireland.
Gold Award Winners Gold Winners: • Byrne’s Gala Express, Longwood, Co. Meath • Dunne’s Gala, Cahirciveen, Co. Kerry • Larkin’s Gala, Ballina, Co. Tipperary • Durkan’s Gala, Louisburgh, Co. Mayo • Tuffy’s Gala, Ballina, Co. Mayo • Kehoe’s Gala, Ballycullane, Co. Wexford Silver Winners: • Harkin’s Gala, Ballybofey, Co. Donegal • Tobin’s Gala, Letterkenny, Co. Donegal • Mc Gloin’s Gala, Foxford, Co. Mayo • Mangan’s Gala Express, Ballina, Co. Mayo • Gala WFC, Waterford Rd, New Ross, Co. Wexford
Category Award Winners: • Customer Service Award: Larkin’s Gala, Ballina, Co. Tipperary • Fresh Food Award: Frayne’s Gala , Enniscorthy, Co. Wexford • Best New Comer to the B.E.S.T programme: Darnell’s Gala, Ardara, Co. Donegal • Community & Merit Award: Mc Gloin’s Gala, Foxford, Co. Mayo • Innovation Award, Mulrooney’s Gala, Roscrea, Co. Tipperary • HR & Training Award: Tobin’s Gala, Letterkenny, Co. Donegal • Off Licence Award, Nyne’s Gala, Letterkenny, Co. Donegal
Delivers...at Christmas At PostPoint we strive to supply our retailers with unique and practical products, ones which make customers lives a little bit easier. This is never truer than at Christmas time when PostPoint retailers can exclusively offer their customers the hugely popular One4all Gift Card and the essential Christmas stamp booklet. Other PostPoint products, such as BillPay, also experiences massive growth around the festive period. With over 140 billers, PostPoint has the most extensive BillPay suite in Ireland. Through PostPoint retailers, customers can pay major household bills, local utility bills and waste management payments.
For a small service fee, the One4all Online Gift Card can also be used to buy a Virtual Visa Card. This gives customers the freedom to make purchases from online shops located all around the world. So, no matter where the lucky recipient lives or what their interests are, they are guaranteed to find something they really want with the One4all Online Gift Card, whether it’s through traditional retail stores or in the virtual marketplace!
Online Gift Card One of the most exciting products to be added to the PostPoint portfolio this year has been the new One4all Online Gift Card. This card offers your customers the ultimate in convenience as it can be spent at any of One4all’s 4,500 retail partners or selected online retail partners.
The One4all Gift Card is Irelands leading multi-store electronic gift card and is exclusively sold through Post Offices and PostPoint outlets. Research reveals a 3000% surge in One4all sales during the final week leading up to Christmas. It is the perfect Christmas gift for your customers, enabling the lucky recipient to purchase products or services in over 4,500 retail outlets nationwide.
How to order One4all Gift Cards or Stamps? It’s easy! Simply call the PostPoint Help Desk on 1890 20 42 20 or go online to www.postpoint.ie/retailer and place your order. One4all Gift Cards are free to order so why not place your order today.
Driving home sales for Christmas Stamps and One4all Gift Cards are key products sold through PostPoint retailers over the festive season. However, PostPoint’s other products also see huge growth during December. Mobile top up, billpay, waste management, international calling cards, tolling and parking solutions are necessities for customers all year round; however, demand for these products substantially increases at Christmas time. So, whether customers are sending their first greeting card of the season, searching for that ideal gift, calling a loved one abroad, sorting their bills before the New Year or driving home for Christmas, PostPoint retailers will be at the heart of it and will be there to offer that perfect solution.
The moment you send a card, it’s Christmas! Luckily for PostPoint retailers, with every single card sent this Christmas, customers will also need a stamp. Research shows that stamp sales increase by over 300% in the weeks leading up to the festive season. The first two weeks of December are particularly busy as last dates of posting loom large on many customers’ minds.
PostPoint would like to wish all our retailers and readers of Retail News a very Happy Christmas and a prosperous New Year.
www.postpoint.ie
26|Retail News|November 2011|www.retailnews.ie
National Quality and Excellence Awards SuperValu and Centra swept the board at the National Quality and Excellence Awards, with Hurley’s SuperValu Midleton scooping the overall National Award for Hygiene and Food Safety for the second year in a row. The team at Hurley’s SuperValu Midleton celebrate winning the EIQA’s National Award for Hygiene and Food Safety.
and Score on Quality SUPERVALU and Centra proved that their stores were top of the ‘Q’ when it comes to quality, excellence and hygiene, having swept the board at the 43rd National Quality and Excellence Awards, held in Dublin recently. It was a triumphant night for the business, with SuperValu and Centra picking up no less than seven awards, and Hurley’s SuperValu Midleton taking home the overall National Hygiene Award on the night. The prestigious awards are independently audited and hosted by Excellence Ireland Quality Association (EIQA) and acknowledge the crème de la crème of the retail industry, recognising stores’ commitment to hygiene and food safety across all aspects of their business. The awards symbolise a commitment to excellence, which brings rewards both for business and consumers. Winning a Q Mark award provides confidence to consumers that stores are upholding the most stringent levels of quality and excellence standards across their business, and at the same time recognises the hard work and dedication of stores that go above and beyond to stay at the top of their game.
SuperValu took home four awards on the night, with the Kavanagh Group receiving the Group Retailer of the Year Award and SuperValu Kilmallock winning the Sapphire National Quality Mark Award. However, the night belonged to Hurley’s SuperValu Midleton, who won the overall National Q Mark for Hygiene & Food Safety for the second year in a row, as well as receiving the Emerald Quality Award. Centra picked up two coveted awards, with Cahill’s Centra, Marlay Park, and Delaney’s Centra, Aherla, being awarded the Sapphire and Emerald National Quality Mark Awards respectively.
Kelleher maintained that a quality performance is about determination to constantly serve customers to the very best of their ability: “SuperValu and Centra stores continue to push out the boundaries of excellence and are committed to meeting and exceeding the highest standards of food safety.” Kelleher continued, “Core to our business ethos is being prepared to go that extra mile, not because we have to, but because we want to. It is about the range of food we offer, our customer service standards, our operating standards, and consistently exceeding customer expectations.”
Highest Standards of Excellence
Tommy Grimes has managed Hurley’s SuperValu, Midleton for the past 12 years. When contacted by Retail News, shortly after their fantastic two-in-arow win, Tommy expressed his pride in the store’s fantastic achievement: “It is an amazing achievement to win this award for the second year in a row. We have a fantastic team of people here in SuperValu Midleton and it is an endorsement of the hard work put in by the whole team on a daily basis that we have
Speaking about the awards, Martin Kelleher, Managing Director, Musgrave Retail Partners Ireland said, “As a business, we are dedicated to adhering to the highest standards of excellence in everything we do. These awards are a testament to the quality standards that are core to our brand and are maintained throughout our food chain, from production right through to the supermarket shelf.”
Fantastic Achievement
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National Quality and Excellence Awards
Breda and Tom Cahill, from Cahill’s Centra, Marlay Park, are pictured with Brian Mohan, store manager, and Bernard Lonergan, Manager, receiving the Sapphire National Quality Mark Award from Irene Collins, Managing Director of EIQA (second left). Eamon McCarthy from SuperValu Kilmallock receives the Sapphire National Quality Mark Award from Irene Collins, Managing Director of EIQA.
Lara and Noel Kavanagh, from the Kavanagh Group, receive the Group Retailer of the Year Award from Irene Collins, Managing Director of EIQA.
Pictured are Tommy Grimes (left), store manager, and John Hurley, store owner, with their EIQA National Awards.
retained this award for a second year. As a business, we are focused on maintaining optimum standards of hygiene and our commitment to this is second to none. We pride ourselves on having a world class hygiene system in place in-store, but we never rest on our laurels; we are always looking for ways to improve the service we offer to our customers.” Tommy cites “clear communication among the entire team” as the key to the store’s success. He pays particular tribute to Lucy McDonnell, who holds two key roles in SuperValu Midleton: HR Manager and Hygiene/ Health & Safety Manager. “Lucy has been
Pat Delaney, from Centra Aherla, accepts the Emerald National Quality Mark Award from Irene Collins, Managing Director of EIQA.
terrific and has been instrumental in establishing our hygiene policies. She set up an induction programme, whereby every new member of staff is immediately familiarised with our hygiene and health & safety systems, so all members of staff are indoctrinated into and fully understand our business culture and the vital role which hygiene plays, from the offset,” said Tommy.
Part of the Community
Hurley’s SuperValu is an integral part of the community in Midleton, where it has provided for the needs of local shoppers since 1970, and its
consumers are justifiably proud that their supermarket has been recognised as the cleanest, most hygienic supermarket in the country. “We have had a lot of positive comments from our customers,” Tommy notes. “People want the best value, but hygiene and cleanliness, as well as friendliness, are high on their agenda also.” We couldn’t let Tommy go before one final question: can Hurley’s SuperValu make it an unprecedented three-in-a-row in 2012? “There will be a lot of other stores going for the award next year,” he laughs “but we’ll try our best and we’ll be pushing hard. Of course we’d love to win three in a row and we’ll be giving it everything we’ve got!” With the track record of Hurley’s and the commitment and hard work of their entire staff, it’d be a brave person who’d bet against them. Commenting on SuperValu Midleton’s exceptional two-in-a-row win, Martin Kelleher commended the store’s achievement: “This award is a verification of the standards of excellence that are core to all of our brands and illustrates that our dedication to quality is not a once off promise but a long-term sustained commitment.”
28|Retail News|November 2011|www.retailnews.ie
Christmas Stocking: Sweet Treats
Sweet
Surrender
Confectionery is one of the most important destination categories at Christmas time and sharing and gifting are among the greatest purchase drivers during the festive season. Christmas is the largest season for confectionery sales, with confectionery very much a destination category for consumers. Indeed, total grocery was up by 4% in 2010 while Christmas confectionery grew by a huge 14% yearon-year, with €44.3m of confectionery sold in the run-up to Christmas 2010. Shoppers purchase confectionery as gifts for relatives or friends, as treats for all the family, and for
entertaining throughout the festive season. Sharing formats perform particularly well over Christmas. Assortments remain the dominant format with a value share of 44.5% of Christmas confectionery (Source: ACNielsen, ROI, Scantrack incl. Discounters & Dunnes, 12 w/e December 26, 2010).
Kraft Foods
The Cadbury Wishes Gift pack contains 14 magical mini milk chocolate stars with a magical bubbly chocolate and truffle centre, with 10% of the profits donated to the Make-A-Wish Foundation Ireland.
Kraft Foods claims a 46% value share of total Christmas Confectionery (Source: ACNielsen, ROI, Scantrack incl. Discounters & Dunnes, 12 w/e December 26, 2010). The Kraft Foods range continued to be the preferred range at Christmas and Kraft Foods is the only manufacturer to have built percentage spend loyalty during the Christmas period, so it is vital that the right range of products is stocked for each and every need this Christmas. Cadbury brands account for more than two thirds of the Selection Box market and are the key brand driving growth within this format. Last year, Cadbury Heroes were the key driver of Cadbury’s assortment growth, up 30.5%. Roses and Milk Tray also helped to drive
Christmas wouldn’t be Christmas without Cadbury Roses – stock the seasonal range in a high-traffic ‘Christmas zone’ in-store for maximum sales.
this growth (Source: ACNielsen, ROI, Scantrack incl. Discounters & Dunnes, 12 w/e December 26, 2010). Cadbury Roses is an iconic Christmas confectionery brand, which has been helping to drive Kraft Foods growth in this segment. Christmas wouldn’t be Christmas without Cadbury Roses – stock the seasonal range in a high-traffic ‘Christmas zone’ in-store for maximum sales. Kraft Foods also has a pre-filled hod available and impactful point of buying displays, including a gift shop unit for assortments. As shoppers buy confectionery at Christmas for gifting and sharing, it’s a perfect time for the category to tap into the spirit of giving during the season – and Kraft Foods has done just that. Cadbury is continuing to support Make-A-Wish Foundation this Christmas by helping them to grant
CK ! O OW ST N P U
Has C hristmas C overed
C hristmas Confectionery
grew by a huge 14% YOY * Kraft Foods account for 46% of the total Christmas Confectionery market** * AC Nielsen Christmas 2010 Review w/e 26/12/2010 ** Nielsen Scantrack w/e 26/12/10 for Xmas Novelties/Nielsen Market Track w/e 26/12/2010 for Assortments
30|Retail News|November 2011|www.retailnews.ie
Christmas Stocking: Sweet Treats An Enduring Kraft “In 2011, Kraft Foods have an amazing portfolio of brands through Cadbury ranges, Toblerone, Terry’s and Milka, which are designed to drive continued growth over the season. Following the success of Cadbury Wishes launch in 2009, which sees 10% of the profit going to the Make a Wish Foundation Ireland, Cadbury are introducing a new addition– The Cadbury Wishes Gift pack. The Wish pack contains 14 mini milk chocolate stars with a bubbly chocolate and truffle centre. New from Terry’s Chocolate Orange is the Honeycomb Crunch - milk chocolate flavoured with real orange and crunchy honey flavoured caramel bits. Also new for 2011 is the Cadbury Character bag, which contains 10 treat size favourites and is available in two pack designs. To celebrate Cadbury as the official treat provider to the Irish Olympic and Paralympic teams, there is a Cadbury Team Ireland Selection box containing 10 impulse bars, featuring such favourites as Cadbury Caramel, Wispa, Double Decker and Crunchie. In order to create Christmas theatre in-store, Kraft Foods have a range of pre-filled hods available and impactful point of buying displays, including a gift shop unit for assortments, novelty stand, Santa sleigh to create a Christmas zone in-store, Christmas mini bases and pallet wrap. Top Tips for Retailers: • Create a Christmas zone in a high traffic flow location; • Use ‘theatre’ to bring the zone to life e.g Santa, reindeer, snowflake visuals; • Stock a number of different confectionery formats to appeal to all shoppers; • Hotspot Christmas novelties at or around the counter to drive incremental sales. - Lucinda White, Category Management Kraft Foods
Olympic and Paralympic teams, there is a Cadbury Team Ireland Selection box containing 10 impulse bars, featuring such favourites as Cadbury Caramel, Wispa, Double Decker and Crunchie.
Jacob’s
When it comes to tins of biscuits, Jacob’s is the market leader, claiming 34% value share of the Christmas New Cadbury Character Bag contains 10 treat size favourites, Assortments market to offer a treat for all the family, and comes in two fun festive (Source: ACNielsen, pack designs. 13 weeks ending December 26, 2010). more magical wishes to children and The key must-stock items in the range young people fighting life-threatening are Jacob’s Afternoon Tea 1kg, Jacob’s illnesses. To celebrate the partnership USA 1kg and Jacob’s Elite Chocolate and further support Make-A-Wish, Kimberley 660g. Cadbury are introducing a new This year, flying in the face of price addition to the Wishes brand – The inflation, the recommended selling Cadbury Wishes Gift pack. The Wish prices of these best-selling brands Pack contains 14 magical mini milk have been reduced – Jacob’s USA will chocolate stars with a magical bubbly be €9.99, while Jacob’s Afternoon Tea chocolate and truffle centre. Each star and Jacob’s Elite Chocolate Kimberley is flow-wrapped with a message that both have a new, lower RSP of €11.99. begins on the wrap and continues onto With these reductions and weighing in the star itself. Most magical of all, 10% at 1kg, Afternoon Tea and USA now of the profits from sales of the Cadbury offer the consumer even better value Wishes Gift pack will be donated to for money at a time when that is an the Make-A-Wish Foundation Ireland. increasingly important factor at the Cadbury Wishes are an ideal sharing point of purchase. format for the festive season. Launched in April this year, Jacob’s New to the Cadbury range in 2011, Elite Chocolate Mikado has already the Cadbury Character bag contains established itself as the highest-selling 10 treat size favourites, to offer a treat Biscuits NPD launch of for all the family, and is available in the year so far two fun festive pack designs. The Character bags have replaced Cadbury’s large selection boxes and are a fun departure from the traditional selection box format, whilst remaining a strong gift offering in terms of presentation. Also new for the Christmas season from Kraft Foods are: Terry’s Chocolate Orange Honeycomb Crunch (milk chocolate flavoured with real orange and crunchy honey flavoured caramel bits); and to celebrate Cadbury as Jacob’s Elite Chocolate Kimberley, has a the official treat provider to the Irish new, lower RSP of €11.99.
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Christmas Stocking: Sweet Treats
Jacob’s Elite Chocolate Mikado has already established itself as the highest-selling Biscuits NPD launch of the year so far.
The hugely popular Jacob’s Afternoon Tea 1kg has seen its RSP reduced to €11.99.
of new exciting product choices, and Christmas is no exception. New for Christmas this year is the Aero Christmas Tree - a uniquely moulded novelty tree figure, filled with delicious bubbly Peppermint Aero. This month also sees the launch of Quality Street ‘My Purple Bar’, created to celebrate the brand’s 75th anniversary, with four classic Jacob’s USA, now with an Quality Street giant purple RSP of just €9.99, is a big sweets in an indulgent bar format. Available for a limited winner with Irish consumers. time only, the bar encases the ‘Purple One’s’ signature creamy (Source: ACNielsen, Year to Date, caramel centre, with whole hazelnut October 2, 2011). Within weeks of covered in smooth milk chocolate. the launch, consumers were already To further celebrate the brand’s asking whether it would be available 75th birthday this Christmas, Quality in tins for Christmas, so to cater to Street 400g cartons and 1kg tins that demand, a 616g tin has been will feature an added to the Jacob’s range. With an exciting on-pack RSP of €11.99, it is sure to light up the Christmas Biscuits market this year. The iconic trio of Jacob’s Kimberley, Mikado and Coconut Creams are also available in family-sharing tubs this Christmas. Jacob’s Chocolate Mallows, Jacob’s Elite Pleasures and Jacob’s Biscuits for Cheese complete a mouth-watering lineup which are all wellestablished seasonal favourites.
promotion giving consumers the chance to win presents every day for 75 days, including laptop computers, televisions, bicycles, mobile phones, game consoles and more. Consumers just need to find the unique code printed inside their pack and enter it on the Quality Street website to be told instantly if they have won. Their present is then ‘unwrapped’ online and revealed to them. Nestlé Confectionery’s selection of giant tubes also make a welcome return this Christmas. Always a firm favourite and ideal stocking fillers, the range includes Milkybar, Rowntrees, Smarties, Rolo and new Munchies giant tube. Their entire range has no artificial, colours, flavours or preservatives. Novelty products are also vital to driving Christmas confectionery sales. This year, Nestlé has developed the perfect gift solution for ‘hard to buy’ men of all ages with its new Yorkie Monster Truck. A moulded monster truck made with men’s favourite Yorkie milk chocolate, it is sure to be a driver of incremental sales. The Yorkie Monster Truck will join the Smarties Chocolate Penguin and the Milkybar White Chocolate Polar Bear as unique novelty items for Christmas 2011. Following the launch of the Rowntree’s heritage gift cartons last Christmas, Nestlé is introducing the hugely successful Randoms brand into the range. The new Rowntree’s Randoms carton will capitalise
Nestlé Ireland
2011 has already been a hugely innovative year for Nestlé Confectionery, with the introduction of a range
Nestlé Confectionery have a huge range of confectionery products available for the Christmas market.
32|Retail News|November 2011|www.retailnews.ie
Christmas Stocking: Sweet Treats Christmas with Cuisine de France Retailers can maximise their in-store bakery sales this year with the Cuisine de France range of delicious and enticing festive delights! Tips for Success: • For an optimal consumer offer, stock the full range of festive delights from Cuisine de France; • Manage your baking throughout the day: the smell of freshly baked Mince Pies in-store will create an appetising aroma and will maximise your sales! • Use the unique Cuisine de France Festive Delights secondary display unit to ensure availability of the range, whilst not impacting your regular in-store bakery sales; • Place the Cuisine de France Festive Delights secondary display unit in a high footfall location, either at front of store or at the entrance to the fresh food area; • Ensure POS material is on display in all locations: this will create theatre in-store and correctly priced product always encourages consumers to shop the area; • Keep the Cuisine de France Festive Delights display full: an abundant display means you will never have a lost sales opportunity; By following this six-step approach, you can enjoy seasonal cheer and the sound of your tills ringing right up to Christmas!
on the phenomenal success the brand has enjoyed since launch and is an ideal novelty gift choice for family or friends.
United Biscuits
United Biscuits are launching a whole host of Christmas-themed biscuit selections, which offer great value for money, as well as providing the perfect solution for catering for family and friends or gifting this Christmas. Ranges such as McVitie’s Victoria and Crawford’s Family Circle are some must-have products for the festive season. New for Christmas 2011 comes McVitie’s Temptations Carton 280g (RRP €10), a luxurious collection of
Retailers can maximise their in-store bakery sales this year by stocking the full range of delicious and enticing festive delights from Cuisine de France.
enjoyed by all the family and works equally well for gifts this Christmas. The McVitie’s Jaffa Yard (RRP €8) is back this Christmas and is the perfect stocking filler for young and old. This is a unique, novel and attentiongrabbing gift and is sure to sell fast. McVitie’s Classic Collection Heritage Tin (RRP €12) has a delightful selection of classic biscuits, including luxury chocolate chip cookies and shortbread rounds and is an ideal gift for family and friends. The ever-reliable Crawford’s Rover collection (RRP €7) has been given a facelift this Christmas, with a new purple packaging and a selection of biscuits all the family will love. Crawfords Family Circle (RRP €8), the best selling everyday assortment, is back for 2011 with a new celebratory design and improved biscuit selection. Now featuring 11 varieties for all the McVitie’s Victoria and Crawford’s Family family to enjoy, this selection Circle: must-have products for the festive makes for a great everyday season. treat for the family.
chocolate treats, combining a variety of delightful tastes and delectable textures with smooth Milk, White and Dark Belgian chocolate. McVitie’s Moments Tin 500g (RRP €13) is another new collection of delicious biscuits from McVities, which includes a selection of luxurious dark, milk, & white Belgian Chocolate Biscuits. McVitie’s Victoria Tin (RRP €16), Ireland’s number one selling biscuit assortment brand in 2010, is undergoing a redesign for 2011. The heritage biscuit collection can be
34|Retail News|November 2011|www.retailnews.ie
Christmas Stocking: Essentials
With Irish consumers set to be Europe’s biggest spenders this festive season, we focus on the brands guaranteed to fly off your shelves.
Have You Got
Christmas
Covered?
IRISH consumers are set to be the highest spenders in Europe this festive season, with average spend per household standing at €943, according to the latest annual Deloitte Christmas Spending Survey. Value for money remains high on the consumer agenda, however, as this spend has declined from €1020 in 2010. The survey, which was carried out in the second and third week in September, shows that of the average spend in Ireland this festive season, €520 will be spent on gifts, €258 will be spent on food, and €165 will be spent on socialising. This year Irish consumers are predicting that they will spend 9.5% less on gifts, 5.5% less on food and nearly 4% less on socialising. “Following a steep decline of 10.6% in spending last year, it’s somewhat encouraging for retailers that the drop in spend is not as significant as last year, and it’s interesting to see that Irish consumers have regained the crown of top spenders in Europe,” noted Richard Howard, Partner, Deloitte. “Through the last number of years, it has been abundantly clear that despite the fiscal pressures they face, the desire to embrace Christmas and enjoy the festivities has remained strong! That said, the prudency and increased frugality observed in previous years remains a feature of Irish spending… Be it buying fewer gifts, buying more
own brand products or an increased focus on utility and durability, retailers must meet the needs of an increasingly experienced and savvier Irish consumer, one which is here to stay. Consumers now expect more for less.” So, what are Christmas shoppers looking for this year? • 72% indicated that they will focus more on buying less expensive gifts; • 83% will buy more products and gifts that are on sale; • 84% will focus more on buying useful gifts; • 69% intend to increase their purchase of discount or retailers’ own label products, and few branded products.
Energizer
Energizer, a global leader in portable power, is launching its first global communications platform that showcases the many ways that together Energizer and consumers can make a positive difference in the world. The platform is brought to life in a new multi-dimensional advertising campaign, ‘That’s Positivenergy™’, which launched globally in October, consisting of television, print, online and social networking efforts. The foundation of the new platform combines performance plus responsibility, and demonstrates Energizer’s long-standing commitment to responsible power, and serving the community.
Powering innovation and profits Energizer continues to drive the portable power category by adding energy and excitement that drive category growth and sales • a strong brand that resonates with shoppers and new retail programmes • complete portfolio of products to help drive retail margin • more insights and innovation • excellent in-store execution
TM MC
energizer.eu
High Tech 60% longer claim, in digital cameras vs. Energizer Standard Alkaline; results vary by device. Ultimate Lithium 8x longer claim, in digital cameras vs. Energizer Standard Alkaline; results vary by device. Use less batteries, create less waste. Recharge 6x longer claim, vs. Energizer Classic; results vary by camera. Ultraplus 30% longer claim, in high tech devices, vs. Energizer Standard Alkaline; results vary by device.
36|Retail News|November 2011|www.retailnews.ie
Christmas Stocking: Essentials a greater emphasis on responsibility for self, community and the environment as a whole, says Jeff Ziminski, Chief Marketing Officer: “Our products have always been built upon trust, performance, and responsibility. This is brought to life in our new global communications platform. We believe everyone has the power to make a positive Energizer Hightech: one of the star performers in the Energizer portable power stable.
Energizer’s new platform recognises that consumers are placing
impact.” The new campaign establishes a singular global marketing message that will be executed locally for maximum relevance, and delivered in an efficient and cost-effective manner.
Spread ‘Sunshine Power’ this Christmas WEEE Ireland have launched a battery recycling campaign, Spread a Little Sunshine, to fund vital equipment for Children’s Sunshine Home and LauraLynn House, with the help of Lorraine Keane. WEEE Ireland (the compliance scheme for battery and waste electrical and electronic recycling) have joined forces with the Children’s Sunshine Home incorporating LauraLynn House, Ireland’s first children’s hospice, to give people the opportunity not only to help a charity out this Christmas, but help the environment at the same time! WEEE Ireland hopes to recycle at least 4.5m waste batteries between now and the end of the year as part of this charity initiative. If the target is reached, WEEE Ireland will give Children’s Sunshine Home incorporating LauraLynn House a battery-powered electric SUV that will be used by both staff and children at the children’s hospice. Batteries can be dropped off for recycling at consumers’ local recycling centre or in any retail outlet that sells similar batteries with no purchase necessary. Also watch out for the specially branded WEEE Ireland battery box in retail outlets. WEEE Ireland will also host a number of special collection events all around the country during November and December, see www.recyclefree.ie for a full list of locations. Ambassador for the campaign, Lorraine Keane, said “We all want to do our bit for charity, particularly in the lead up to Christmas and The Children’s Sunshine Home incorporating LauraLynn House is one that helps support children and families suffering from life limiting illnesses. With most people under pressure this Christmas, this campaign gives everyone Pictured at the launch of Spread a the opportunity to help out and contribute, Little Sunshine are (l-r): Ambassador while also doing your bit for the environment for the campaign, Lorraine Keane, – everyone’s a winner!” Philomena Dunne, CEO of Children’s Sunshine Home, and Leo Donovan, See www.recyclefree.ie and www. CEO of WEEE Ireland. sunshinehome.ie for more information.
In lighting products, Energizer brings energy efficient LED and lithium technology to the category.
The first outward sign of the Energizer global initiative has been a move to a refreshed visual identity that captures the new energy behind the popular brand. “The new campaign builds upon our distinctive energy beams, established in our new visual identity launch last year,” says Ziminski, “and uses our popular and familiar icon, the Mr. Energizer, to tell the story.” This new platform is extending beyond advertising to include a global launch event that kicked off in November. Around the globe, Energizer will bring consumers together to help create a brighter world. Through a series of Energizer Night Races, the company and consumers will generate 11m hours of light by donating Energizer solar lighting products to people living in countries where there is no electricity, helping to create safer and more fulfilling work and home environments. And this commitment to community is nothing new. Energizer has sponsored Breast Cancer Foundation Research around Europe through its Pink Battery Program, and has enabled African Children to safely study at night by providing clean and safe lighting through its Light Up Africa Program. The new platform highlights the company’s legacy of category leadership in bringing responsible portable power to the marketplace. In 1991, Energizer developed the first commercially available alkaline battery with no added mercury, and recently expanded its zero mercury offerings
Retail News|November 2011|www.retailnews.ie|37
Christmas Stocking: Essentials The Perfect Corporate Gift from One4all ONE4ALL Gift Cards and Gift Vouchers are the perfect corporate gift for colleagues, agencies and professional associates this Christmas. Why not take the stress out of choosing whiskey or wine, chocolate or cheese hampers and give the gift of choice. Not only can One4alls be spent in over 4,500 outlets across Ireland, they can also be spent online or used as a virtual visa. One4all Gift Cards and Gift Vouchers can be purchased in your local Post Office, online at www.one4all.ie or direct through the Corporate Sales team on
One4alls can be spent in over 4,500 outlets across Ireland, and can also be spent online or used as a virtual visa.
to specialty and hearing aid batteries. Energizer was the first to harness the power of lithium in AA and AAA cells, creating the world’s longest lasting battery in high-tech devices that lasts up to eight times longer in digital cameras versus Energizer®Ultra+®, which means up to eight times less waste because you use fewer batteries; the leader in bringing a wide range of long lasting rechargeable products that can be reused hundreds of times. In lighting products, Energizer brings energy efficient LED and lithium technology, and other advanced features that distinguish them in the category. On the performance side of the equation, Energizer continues to evolve beyond batteries and lights to stay ahead of consumers’ portable power needs. Energizer has expanded its line-up of products beyond batteries to include solar charging devices, solar panels and solar-powered LED lights. Energizer is a charter member of the Wireless Power Consortium that is pioneering a universal standard (Qi technology) to power and recharge everything from smart phones to laptop computers and digital cameras. The Energizer Inductive Charger currently offers an easy and convenient means to charge
01-8708181 or email corpsales@ giftvouchershop.ie. One4all can be redeemed in: Brown Thomas, Arnotts, Clery’s Department Store, Debenhams, Geoghegans Department Store, House of Fraser, Shaws, Clarion One4all Gift Cards and Gift Vouchers are the perfect corporate gift for colleagues, agencies and professional associates this Christmas. Hotels, Marks & Spencer, Delphi Mountain Resort, Donegal Sport O’Briens, The Wine Boutique, Wine & Golf Centre, Executive Helicopters, Buff, Wrights Bar Group, Atlantic Fitzcycles.ie, Fly Fearless, Football Homecare, B & Q, Carphone Warehouse, Trips , K2 Camping and Clothing, Kenny Curry’s, DID Electrical, Electrocity, Shoes & Sport, Landers Outdoor World, Expert Ireland, Halfords, Harvey Leinster Rugby Store, Hughes & Hughes, Norman, Heatons, PC World, Peats Eason, Make Up Forever, Oasis, Peter World of Electronics, Power City, Sony Mark, Pia Bang, Richard Alan, River Centre, The Philips Shop, Woodie’s Island, New Look, Warehouse, Wallis, DIY and Garden Centres, 2Wheels.ie, Topshop, The Body Shop and Toni & American Golf, Great Outdoors, Outdoor Guy plus many, many more. Adventure Store, Buckley Cycles,
smart phones without cords and cables, and will soon charge a full range of the products as manufacturers develop Qi-enabled devices. This next- generation charging technology will dramatically change the way shoppers think about portable and reusable power. Says Ziminski, “the most exciting thing about ‘That’s Positivenergy’ is that we are simply being true to who we are as we harness our innovation, power and responsibility into a global message.”
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Christmas Stocking: Essentials Homecook Wonderbar Cooking Chocolate
range of premium cooking chocolates. Homecook Belgian Dark Chocolate has a 72% cocoa content while Homecook Belgian Milk chocolate has a 32% cocoa content. These products are specially developed to bring out the best in any home baked treats.
The Homecook Wonderbar Cooking Chocolate range from Boyne Valley Group is a firm favourite in households throughout the country. It is so versatile it can be used in a wide variety of recipes, including chocolate chews, buns, cakes, toppings, mousses and it is the perfect decoration for all cakes, buns and treats. Avonmore Freshly Whipped Bailey’s Cream is Homecook Wonderbar a blend of Ireland’s favourite freshly whipped Cooking Chocolate, made cream and the luxurious taste of Bailey’s in Ireland, comes in a variety of Original Irish Cream Liqueur, while Avonmore flavours to suit all tastes – Dark, Freshly Whipped Brandy Cream is the perfect complement to Christmas pudding, mince pies Milk and White are available in 150g, 450g and a 1kg catering and is a great topping on coffee. size. Consumers can also try the Homecook Wonderbar Avonmore Microwaveable Milk Cooking Top of everyone’s shopping list this and chocolate, which is available in a every Christmas is Avonmore Cream. handy 250g microwaveable pouch, Ireland’s favourite cream has nine of The Homecook Wonderbar Cooking Chocolate perfect for ‘no fuss, no mess’ baking. the top 10 selling cream products, from range from Boyne Valley Group is a firm favourite in households throughout the country. The Homecook brand also has a traditional fresh cream to convenient freshly whipped cream, as well as light, double and sour cream, guaranteeing a Payzone cream to suit every occasion and need this festive season. IN its efforts to support Back this Christmas by popular its retail customers with demand is Avonmore Freshly Whipped a valued portfolio of retail Bailey’s Cream 585ml. Avonmore add-on products, Payzone Freshly Whipped Bailey’s Cream is is now distributing a wide a blend of Ireland’s favourite freshly range of branded prepaid whipped cream and the luxurious gift card products and taste of Bailey’s Original Irish Cream digital content. This new Liqueur. Conveniently whipped and consumer retail offering packed in a re-closable 585ml tub, this is being made available indulgent cream is perfect for spooning for the very first time over cakes, pastries, puddings and all your favourite Christmas delights. to retailers across the Avonmore Freshly Whipped Bailey’s Payzone retail network Cream can also be enjoyed in a coffee, throughout the country to Jim Deignan, Managing Director, Payzone Ireland, hot chocolate or even a Bailey’s coffee. celebrating the fact that Payzone now distribute a coincide with anticipated Adding a taste of Christmas to any wide range of branded prepaid gift card products and consumer demand in the dessert this festive season, Avonmore digital content. lead-up to Christmas. Freshly Whipped Brandy Cream is This latest initiative the perfect complement to Christmas by Payzone will now enable Payzone agents to sell various digital content and pudding, mince pies and is a great branded pre-paid gift cards to their customers. Some of the branded prepaid topping on coffee. Also available for giftcards that are already signed up for distribution and stocking in the Irish the Christmas period is Avonmore market include: i-Tunes, Jagex Runescape, Playfish, Moshi Monsters, Nintendo Fresh Cream 750ml – a larger volume of cream, perfect for the many times Ireland, Zynga, Sony Online, IMVU, Sony Playstation, Hotel Voucher Shop, Argos, which cream will be consumed in Irish Debenhams, Arcadia Group and Ticketmaster. households this festive season. As part of its marketing efforts, Payzone agents will be provided with As Ireland’s number one cream specially designed gift card racks on which to display the cards and in-store brand, Avonmore is a firm favourite merchandising Point of Sale to promote the cards available. For more with Irish consumers not only at information, call Payzone on 1800 746 4484 or visit www.payzone.ie. Christmas but all year round.
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Christmas Stocking: News Rack
Christmas Crackers Karen Meenan examines the big festive sellers on the magazine stand. November is a great month to give your shop a festive makeover. After the black and orange themes for Halloween, red and green Christmas produce makes every aisle in your store look like it has something for everyone this season. Except perhaps on your magazine stand. Does this still have the same offering of the usual suspects: Women’s Weeklies, a few TV listings and a smattering of Cars and Sport? Does that sound like your shop? Just as in every other department, the newsagency should define the changing seasons to encourage seasonal purchases. Even if the changes you make are small and barely noticeable, you will be giving a subliminal message to your customer that you are aware of the changing nature of their interests throughout the year, and in so doing, you are creating more opportunities for extra sales: welcome news in recessionary times.
Food Titles
Food titles sell particularly well in the run-up to Christmas. Following the success of last year’s special, Easy Food, the leading Irish food magazine, is launching another Easy Food Christmas Annual. This annual, at 164 pages, is more than double the normal size. The sales of the Christmas Annual are normally 40% higher than the average issue, which reflects the fact that consumers really want to get organised at this time of year and
The RTÉ Guide Christmas double issue, like this 2010 Christmas edition, enjoys sales of up to five times the weekly issue.
make a special effort – all you need to know for the Christmas dinner and more. This magazine has suggestions for a stress-free Christmas, and what to do if things go wrong in the kitchen, along with a host of budget friendly recipes. RRP is €3.95, which at 25% sale or return, is a net profit of around a euro with each sale. Keeping it Irish, Home Made Christmas Annual is on sale from the end of October until just before
Christmas Day. Also retailing at €3.95, this offers a euro at the till point. This has lots of suggestions about how to decorate your home and make crafts as presents – all very welcome in these straitened times. Prudence, another Irish magazine has a bumper pack for its November/ December issue, with an RRP of €4.50. House & Home bumper pack retails at €5.50. VIP, Stellar, KISS and TV Now all have special Christmas issues,
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Christmas Stocking: News Rack Five Top Tips for Christmas Magazines 1. Increase your supply of seasonal titles. 2. Pay special attention to food titles. 3. Focus on Irish titles – 9,000 jobs are supported by Irish magazines. 4. Front face all magazines with cover-mounts. 5. Pay attention to Puzzle Books as stocking fillers.
The Easy Food Christmas Annual enjoys massive sales, reflecting the fact that consumers really want to get organised at this time of year and make a special effort.
make sure to front face these on the magazine stand to get best impulse position.
RTÉ Guide – the Big Seller
The biggest seller of the year, however, is the RTÉ Guide Christmas double edition. With sales of up to five times the weekly issue and offering retailers double the margin on each copy sold, this is the must have magazine on sale during the Christmas season. The issue is supported by a heavyweight media campaign and highly prominent in-store presence. To stock the RTÉ Guide Christmas issue, contact Newspread. Children’s Christmas Annuals used to be huge business – no Christmas stocking was complete without Beano, Topper, Bunty or Jackie Christmas Annuals. They are making a bit of a comeback as discretionary income contracts and traditional gifts are coming back into favour. The big names for annuals this year are Jacqueline Wilson (who incidentally was the Jackie in Jackie magazine all those years ago!), Shout for teenagers and Dennis the Menace, who never really went of fashion in all this time. If you want to get a supply of these DC Thompson titles, contact EM News Distribution directly 01 8023200.
have never ordered, but there is a reason for this. Crafters are 99% female, and usually middle aged, so if you have that profile of customer, then you can create a new sub-sector on your stand which is wholly attractive to them. Knitting, in particular, is the craft to watch. The media is buzzing with knitting related stories – there are knitting supplements in broadsheet newspapers. Knitting magazines have grown by 94% since last year – so stock up with knitting titles and watch them sell! Needlecraft is the longest established and the second biggest sub-sector in the craft category. The majority of titles are cross stitching – some of which have been around for over 15 years. The largest subcategory is Craft – it has a 58% share of the market and the time to sell Craft magazines is now. In a recession, statistics prove that homemade presents increase, all under the ‘getting back to basics’ and ‘not wasting money’ model.
The Growth of Crafts
So what other magazines are your customers buying in this season? Crafts are very popular now. You might have noticed that you have been getting deliveries of knitting and stitching titles, which you probably
Home Made Christmas Annual has lots of suggestions about how to decorate your home and make crafts as presents.
Cake Craft and Decoration is the only monthly magazine for all those interested in cake decoration and sugar-craft. Projects include wedding and Christmas cakes, floral decorations and with full step-by-step photographs, this magazine is suitable for all levels of cake decoration skills. Scrapbook Trends and Quilting are back in fashion again – after the last decade of bling, we are constantly hearing of going back to a more simple way of life when people had less and ‘make do and mend’ was the order of the day. These magazines are niche but, most importantly, have a high cover price, so as retailers you are getting 25% full sale or return on very expensive titles, not widely available, except in specialist shops.
Maximise the Sales Opportunity
Maximise the sales opportunity by locating these titles next to Women’s lifestyle magazines (Essentials, Prima etc) and remember that crafters don’t cross purchase. These customers bake, knit, sew or make paper-crafts – so make sure to stock the best sellers in each of these categories. The best time for sales is the run-up to Christmas, with another little lift in January when people are broke and stay in again – this time to prepare for Valentine’s Day, Mother’s Day and Easter. These peak issues are usually the ones with the best gifts displayed on the covers. Cover-mounts are very important in this sub-category, so please ensure that you merchandise these titles with a full facing to maximise the sales opportunity. Puzzle books are great sellers at holiday time, when customers can grab a piece of quite time out and curl up with a Sudoko or Crossword puzzle. They make for great stocking fillers, and the bumper Christmas annuals usually provide good value for the consumer and a welcome profit for the retailer.
€€€
Don’t miss out on stocking the largest selling magazine of the year... The RTÉ Guide Christmas Double Issue! Call Newspread Customer Service on 023 886 3850 to order your copies now To MAXIMISE your Christmas sales, contact RTÉ Guide Circulation to order in store POINT OF SALE display units
01-208 2145 / 01-208 4207
01-208 2620 / 01-208 2092
rteguidecirculation@rte.ie
42|Retail News|November 2011|www.retailnews.ie
Christmas Stocking: Drinks
Raise a Glass to
Christmas With the off trade growing at the expense of pubs, Christmas 2011 is expected to be a bumper sales period for beverage sales in retail outlets. THE Christmas season is traditionally the busiest of the year for beverages, particularly alcoholic drinks, and with the continued growth of the off trade throughout the year, most market analysts are predicting a big Christmas for the off trade, primarily at the expense of pubs, as Irish consumers continue to tighten their belts. The search for value is a key driver right across the FMCG market, and nowhere moreso than in the alcoholic drinks sector. The off trade has experienced significant growth at the expense of the on trade, which has seen a decline in both volume and value sales. Within the off trade, consumers have moved to multipacks and value pack purchases, according to the latest report into the sector from Euromonitor International. Meanwhile, manufacturers have responded to the shift in demand by reducing prices and the brand status of products as they try to capitalise on ‘downgrading’ by consumers. Multi-buy offers are commonplace, and with most of the
big brand owners willing to engage in discounting for the festive season, Christmas 2011 should be a busy one for the drinks sector.
Bulmers
Maintaining the time-honoured tradition of cider making for over seven decades in Annerville, Clonmel, Bulmers has become an all year round drink of choice for consumers as the number three brand in the LAD
This Christmas-time Bulmers is offering consumers six 500ml cans of Bulmers Original for €10.
Bulmers Light is available at six 500ml cans for €10 this festive season.
market, with peaks at key selling periods such as Christmas. Stephen Kent, Marketing Director, Bulmers, is giving customers a timely reminder to stock up early in anticipation of this busy period in order to avoid the risk of being caught out of stock. This Christmas-time Bulmers is offering a selection of great value
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Christmas Stocking: Drinks committed to making this Christmas that little bit better for 17 consumers and 17 community projects, as a total of 17 apple varieties go into making Bulmers Original Cider. “We appreciate that times are tougher than ever for many people, which is why we want to do our bit by giving something back,” noted Stephen Kent. “The Doing our Bit campaign is central to all Bulmers’ As part of Bulmers’ Doing Our Bit campaign, 17 golden initiatives and for apples, each worth €5,000, are hidden in Christmas Christmas, we want to promotional packs of Bulmers’ cans and longnecks. recognise and reward Bulners’ orchard worker Isabelle launches the campaign. the vital role that local communities play in Irish society.” party packs for the season: Bulmers Doing Our Bit is a series of Original 20 x 300ml longneck party initiatives, some small, some more pack; Bulmers Original 18 x 500ml significant, all intended to make a Can pack; Bulmers 6 x 500ml Can contribution toward making life in packs - “6 for €10” on Bulmers Ireland that little bit better. Original, Light, Pear & Berry. Devised by Young Euro RSCG, As part of Bulmers’ Doing Our the Bulmers Golden Apple Christmas Bit campaign, 17 golden apples, each campaign is being supported by worth €5,000, are hidden in Christmas television, radio and outdoor. The promotional packs of Bulmers’ cans outdoor campaign will feature across and longnecks. Bulmers is calling 48 sheets, golden squares and 6 on consumers to check packs closely, sheets, along with special placements as each of the 17 lucky golden for the month of December. apple winners will win €2,500 for Bulmers has been hugely active themselves, in addition to €2,500 for during 2011, with a range of high a community project of their choice. profile sponsorships, including the The 17 golden apples can be found in Forbidden Fruit city music festival Bulmers Original promotional formats: in Dublin, the Tall Ships Races Bulmers Original 18 x 500ml can pack; in Waterford, Bulmers Live at Bulmers Original 20 x 300ml longneck Leopardstown and the Bulmers Pearpack & Bulmers Original 6 x 500ml sponsored Galway Comedy Festival. can pack. All golden apple promotional packs are going out into the retail trade over Barry & Fitzwilliam the next two months as Bulmers is Michael Barry of Barry & Fitzwilliam claims that they now have probably the most successful prestigious French wines on the market,when you take account of the success of Michel Lynch and Guigals wine from the Cote du Rhone. The Gabriel Meffre range,which includes La Chasse du Pape, adds to their armoury of French wine and will be heavily promoted this year. Faiveley Burgundy Wines, Jolivet Loire Wines and PreissZimmer Alsace wines complete an outstanding portfolio of French wine. From Germany, Blue Nun is still an old favourite and will be heavily promoted by Barry & Fitzwilliam / Allied Wines, with a litre bottle for the price of 70cl. The Bulmers Original 20 x 300ml longneck party pack should prove a real winner with McGuigan wines continue to Irish consumers this Christmas. outperform the market and now
claims to be the number one Australian brand in the multiples. The Black Label range comprises of a Cabernet/ Merlot, Shiraz, Merlot, Chardonnay, Sauvignon Blanc, Pinot Grigio and Rosé, as well as McGuigan Black Label Sparkling Chardonnay and Sparkling Rosé. The range will have strong above the line marketing support for Christmas, particularly in national press, with a major emphasis on Neil McGuigan’s award at the IWC awards as ‘the Best White Winemaker in the world’ and ‘Winemaker of the year’ at IWSC awards. McGuigan McGuigan wines continue to outperform will be adding a the market and the Semillon Blanc to Black Label range will the range just in have strong above the time for Christmas. line marketing support Also from for Christmas. Australia, Hardy’s will be backed by a press campaign and the major emphasis will be on the promotion of Hardy’s Stamp litres for the price of 75cl. The Hardy’s Bin Range will be used as a promotional price offering. Paul Masson is one of the great success stories from California in the last number of years. Sales continue to do well here in Ireland. Distinctive by its carafe-shaped bottle, the red, white and rosé represents excellent value for money. Another Californian success story, Robert Mondavi Winery embodies its founder’s commitment to excellence, innovation and creative spirit, and the Woodbridge range will be promoted aggressively. A family owned New Zealand winery, Villa Maria has been New Zealand’s leading wine award winner, both nationally and internationally, since the early 1980s. The repositioning of the Private Bin Range has seen sales surge in the last six months. Villa Maria is now in the Irish top 20 wine brands for the first time.
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Christmas Stocking: Drinks Teachers Scotch, Courvoisier Cognac, Also from New Zealand, Nobilo Rémy Martin Cognac, The Famous are a well-priced range of excellent Grouse Finest Scotch Whisky, Jim quality wines from both the North Beam Bourbon, Vladivar Vodka, and South Islands. Included in the Boru Vodka and Whyte and Mackay range is the entry level White Cloud. Scotch. Mont Gras, a former “Chilean The range also includes Producer of the Year”, continues to Cointreau, a cool experience on ice grow strongly. B&F will be offering with a warm afterglow, surrounded activity across the full range, from by the exotic scent of oranges while entry level Blends to the excellent maintaining its elegant French Reserva Range, while the Soleus heritage, while Bols Distilleries is one range of Organic Wine produced by of the largest and oldest producers of Mont Gras is also going from strength fine spirits and liqueurs in the world, to strength. some dating back to the year 1575. From Spain, Beronia Rioja wines The selection of flavours available from Gonzalez Byass and Raimat from Bols is vast and includes Bols from Penedes are two exceptional Blue, Grenadine, Advocaat, Crème de ranges which have developed a cult Cacao, Cherry Brandy, Amaretto and following here and the Altozano new Bols Natural Yogurt. range of varietals continues to make Sourz Apple is a low-strength steady headway. (15%) shooter brand that is taking B&F also include Argentina’s the clubs and style bars by storm, Santa Julia/Zuccardi range in their while new Souz Raspberry is well portfolio, producing excellent wines supported on satellite TV. at all ends of the spectrum, with a Jagermeister, the famous German fantastic price/quality ratio. At the schnapps, is a huge seller in the top end, Zuccardi Zeta is an absolute shooter market, particularly among wow. trend setters, and sales are up again B&F have three Champagnes to in 2011. bring to the party: Pol Roger, Charles Also part of the B&F portfolio Heidsieck and Piper Heinsieck. Pol are Tia Maria and Disaronno. Tia Roger has a stunning Rosé, while Maria is a hugely popular coffee both Charles Heidsieck and Piper liqueur worldwide, particularly Heidsieck have won numerous in its mixability in awards here and abroad. cocktails, with coffee or Codorniu, which has a in desserts, or mixed range of styles for every with milk and ice as a pocket, continues to perform luxurious long drink. It very well in the sparkling will be heavily backed category and will be heavily by a TV and press promoted for the party campaign. With season. its distinctive B&F have a very square glass strong line up in the decanter fortified wine sector. and smooth The company represents almond flavour, Harvey’s Bristol Cream Disaronno has Sherry, Croft Original a secret recipe Sherry, Tio Pepe which is said to Sherry, Cockburns include the pure and Taylor’s Port. essence of 17 It is not overstating selected herbs it when Michael and fruits with Barry says that they an infusion of are “very much the apricot kernel category captains oil. A hot brand of this sector”. The internationally, advertising campaign Disaronno is for Harvey’s will have supported by its main emphasis on a satellite TV the “Harvey’s Rocks” With its distinctive square glass campaign. campaign. decanter and smooth almond flavour, One 250ml B&F also Disaronno includes the pure essence bottle of Echo distribute a wide of 17 selected herbs and fruits with Falls Spritz is range of premium an infusion of apricot kernel oil. the equivalent spirits. They include
to just one unit of alcohol, so you can quench your thirst, enjoying one of the refreshing new varieties; Pinot Grigio, Chardonnay or the White Zinfandel (rosé). Aimed primarily at the female market, Michael Barry feels that this has great potential, and will be backed with both a radio and national press campaign initially. The B&F portfolio also includes some high profile beer brands. Corona Extra has grown dramatically in both the on and the off trade over the last few years and the trend already this year is for more of the same. Corona is currently backed by an intensive radio, and poster Corona Extra has grown campaign with the theme, ‘Experience dramatically in both the the Extraordinary’. on and the off trade over the last few years Corona will sponsor and the trend already the Corona Cork this year is for more of Film Festival for the the same. fifth time. Ginger Joe is a new 33cl alcoholic ginger beer with an ABV of 4%. It is produced by Stones, who are famous for their Ginger Wine. This will be heavily advertised on satellite TV over the coming month.
Ginger Joe is a new 33cl alcoholic ginger beer with an ABV of 4%.
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Christmas Stocking: Drinks Global Beer Bands have seen an increase in interest. B&F have taken on a range of world beers, including the Wells & Young portfolio, Efes from Turkey and Coopers beers from Australia.
Edward Dillon & Co. Ltd
On the eve of its 150th anniversary, Bacardi, the world’s favourite and bestselling premium rum, has announced the launch of Bacardi Oakheart, which reaffirms the brand’s leadership position in rum with expressions now across all rum segments – traditional, flavoured and spiced. “Bacardi Oakheart has been launched to capitalise on the emerging popularity of spiced rums and rum-based drinks and delivers a product with the credentials of a brand that created modern rum in 1862,” said Tiernan O’Morain, Market Development Manager. “Bacardi Oakheart was created to bring together a new generation of consumers – a generation that lives for Bacardi Oakheart has been adventure, launched to capitalise on the freedom and emerging popularity of spiced spontaneity. rums and rum-based drinks Coming from and delivers a product with the credentials of a brand that more than created modern rum in 1862. a century of
Cocktail Pina Colada has Bacardi tradition and rum an RRP of €13.99 but is know-how, the introduction on special promotion for of Oakheart is a major Christmas at €9.99. development for our brand It’s been a great year and Bacardi Oakheart is for William Lawson’s, the ideally positioned to earn blended Scotch Whisky which a leadership spot in spiced is distilled and bottled in spirit drinks.” Scotland. Hot off the press is Bacardi Oakheart (70 the news that it won a Gold proof/35 % ABV) begins with Medal at The International rums mellowed in charred Wine & Spirit Competition, American white oak barrels and the announcement and blended together to that William Lawson’s is create the perfect base. ranked Number 9 in the Choice flavours and spices, International Wine & Spirit including cinnamon, nutmeg, Research Elite Brands honey and vanilla are added List. It is a great accolade to this blend and the liquid and gives the is filtered. The result is a Bacardi Classic Cocktail Pina brand credibility bold, spiced spirit drink Colada is the ultimate home of premium rum straight entertaining solution and offers the within the drinks from the heart of charred legendary cocktail in a convenient industry. Only 11 brands met the oak barrels with an amber ready-to-serve package. hue, a hint of smokiness and unique velvet-like smoothness. The Oakheart name derives from the charred oak barrels used for the rum blended into Bacardi Oakheart. Bacardi has also launched a new cocktail addition to its ready to drink portfolio. Bacardi Classic Cocktail Pina Colada is the ultimate home entertaining solution and offers the legendary cocktail in a convenient ready-to-serve package. In 1862 in Santiago de Cuba, Don Facundo Bacardi Masso revolutionised cocktail making with the creation of the first premium aged white rum. The Bacardi Classic Pina Colada is an iconic cocktail which was created by bartenders nearly a century ago using Bacardi Superior Rum. This pre-mixed version will impress guests without the hassle of preparation. It also shows consumers that anyone William Lawson’s, the proud winner of a can host a fantastic party or get Gold Medal at The International Wine & together at home. Bacardi Classic Spirit Competition.
A TRADITION OF HONOURING HEROES
Chile. 1814. 120 brave men, led by Irishman Bernardo O’Higgins, take refuge from Chile’s war of independence in the Santa Rita cellars. Our 120 range is named in their honour.
Today, Ireland’s traditions and talent are brought to life by our musical heroes entertaining audiences around the world.
Nominate your Hero today and win €10,000 for your local community and a trip to Chile.
NOMINATE YOUR LOCAL HERO TODAY 6511 Santa Rita Retail News 64x180 VIOLIN.indd 1
03/11/2011 16:50
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Christmas Stocking: Drinks The ‘Morning After’ Effect WITH the new lower drink-driving limits now in effect, drinkaware.ie is reminding people of the importance of remembering the ‘morning after’. Morning breath testing has led to real concerns for people who, although they found alternative methods to get home safely the night before, now feel they may risk being over the drink driving limit the next morning. In the run-up to the festive season, drinkaware.ie will be rolling out a nationwide campaign, in conjunction with the Road Safety Authority (RSA), to raise awareness of what a standard drink is - a glass of beer, or a small glass of wine, or a pub measure of spirits - and the period of time it takes the body to eliminate it. The aim of the campaign is to reduce incidences of road collisions due to ‘morning after’ drink driving when many individuals are unaware of the continuing effects of alcohol. In addition to a national radio and poster advertising campaign, MEAS have produced handy information cards explaining what a standard drink is and how it affects your body. The cards are specifically designed to be kept for future reference. Not only will they fit into your wallet, there is also a space on the card so people can write in their local taxi number. These cards will be distributed at Garda checkpoints and will also be displayed in national retailers, plus a number of licensed premises and off licences. Campaign materials are available free of charge from MEAS. To request the ‘Morning After’ posters or info cards, please contact MEAS on 01 6114811 or email info@meas.ie.
strict criteria for the list in 2011. The whisky is named after William Lawson, who was born in Scotland in 1853 but moved to Dublin in 1881. He joined EJ Burke, a spirits company on O’Connell Street, where he worked his way up the ranks to become Export Director. William’s passion and dedication to uncompromised quality so impressed his employers that they renamed their blended Scotch Whisky after him. It is this ethos that has made this big bold Scotch Whisky the success that it is today. The brand has an RRP of €18.99 but is on special promotion for Christmas at €15.99.
announced – the Coors Light Cold Activated Can. Drinkers of Coors Light will know their beer is ice cold and ready to enjoy when the Rocky Mountain Icon on the can turns from white to icy blue. The Coors Light can features temperature-sensitive thermal chromatic ink technology that turns the Coors Light Rocky Mountain Icon from white to blue when the beer has been chilled to four degrees Celsius or less. Coors Light’s commitment to delivering the ultimate refreshment experience to consumers is not limited to 500ml cans; the Cold Activated Rocky Mountain label is also on all 330ml bottles. Christmas 2011 and Cold Heineken Ireland Activated sees Coors Light It’s set to be a cool Christmas for Coors unveil its new Light as its latest packaging, cold innovation is refreshing the brand and bringing Rocky Mountain refreshment to off-licences across the country. Coors Light is now the number four lager brand in the Irish market, and within the specialist group channel, Coors Light is the fastest growing premium 500ml can (Source: The Coors Light Cold Activated Can means that ACNielsen, August, MAT, Volume). consumers will know their beer is ice cold and ready to enjoy when the Rocky Mountain Icon For all things Coors Light, log onto www.facebook.com/coorslight.ie. on the can turns from white to icy blue
Cassidy Wines
With the Irish consumer’s love affair with New Zealand Sauvignon Blanc showing no signs of abating, Cassidy Wines are launching Misty Cove Sauvignon Blanc from Marlborough. Misty Cove Sauvignon Blanc is full of lively aromatic fruit characters, with gooseberry, melon and ripe herb notes, finishing with refreshingly elegant and limey acidity. Misty Cove Sauvignon Blanc has an RRP of €12.99 and will be supported with trade promotions.
Gallo Family Vineyards
Gallo Family Vineyards continue to bring choice and value to the off-trade this Christmas, New from Cassidy with promotions Wines comes Misty on a selection of Cove Sauvignon approachable fruit Blanc, which will forward wines be supported with trade promotions. that perfectly complement the season’s festivities. Year-on-year, this perennial favourite delivers a charming portfolio of award-winning, affordable
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Christmas Stocking: Drinks For that Special Occasion: Hennessy VS (€27.99): Edward Dillon & Co. Ltd THE French region of Cognac is situated in North West France, near the towns of La Rochelle and Niort. Cognac (or brandy as it is also called) is a spirit, distilled from a wine base. The producers make white wine from a grape called Ugni Blanc and then distil this into a clear white spirit. The white spirit is then aged in oak casks for a period of time so that the wood imparts colours and flavours, giving those lovely soft vanilla and burnt toffee aromas and flavour that we so associate with good Cognac. Hennessy Cognac has a great Irish heritage. Founded in Cognac, France in 1765 by Cork-born Richard Hennessy, today Hennessy is one of the biggest selling Cognacs on the Irish market.
wines, that appeal to the taste-buds of the Irish consumer for a range of occasions, from Christmas drinks to the celebratory dinner. With a light crisp finish, Gallo Family Vineyards Sauvignon Blanc offers a bright and refreshing balance of fruit flavours. The perfect partner to the traditional Christmas dish, Gallo Family Vineyards White Zinfandel complements festive flavours with hints of dried cranberry, watermelon and fresh cherry. Gallo Family Vineyards
Cabernet Sauvignon, with its aromas of fresh dark fruit and hints of toasted oak, is great with a red onion and goat’s cheese tart, served with rocket and olive oil dressing, for a tasty vegetarian alternative this Christmas. Gallo Family Vineyards White Zinfandel and Sauvignon Blanc are both widely available from Tesco, Dunnes, Superquinn, SuperValu and Centra stores nationwide, while Cabernet Sauvignon is available from Tesco, Dunnes and Superquinn stores, priced at €8.49.
Molson Coors
Gallo Family Vineyards continue to bring choice and value to the off-trade this Christmas, with promotions on a selection of approachable fruit forward wines that perfectly complement the season’s festivities.
Cobra Beer is launching a full brand redesign in Ireland to emphasise both Cobra’s premium positioning and world beer credentials, whilst retaining its Indian heritage. The redesign includes an updated Cobra brand identity and new primary and secondary packaging. New beer packs and free standing units are being introduced at an exciting time for Cobra Beer, which will also see the release of modern and sophisticated new glassware. Originally imported from Bangalore, Cobra is brewed to a traditional Indian recipe, with a modern twist for an extra smooth taste. Only the finest ingredients are used, including rice, maize and a little less gas, to create a uniquely smooth taste, quite unlike any other beer. The redesign establishes Cobra as a leading world beer, signalling the brand’s commitment to quality and consistency. Cobra is already well known as the perfect accompaniment
to Indian cuisine and this new look reaffirms that Cobra is a beer that can be enjoyed on any occasion. Lord Karan Bilimoria, founder and Chairman of Cobra Beer, said: “Cobra is a unique and iconic brand and our redesign is modern and sophisticated, fitting of an award winning beer. It is an exciting time for Cobra as we start our journey to lead the Molson Coors World Beer Category and ultimately become a top brand in Ireland.” In research, consumers perceived the new look Cobra as being more premium, stylish and modern and, importantly for Cobra customers, are more likely to purchase Cobra as a result.
Cobra Beer is launching a full brand redesign in Ireland to emphasise both its premium positioning and world beer credentials, whilst retaining its Indian heritage.
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Christmas Stocking: On The Vine
The Vine Inspiration Jean Smullen picks her festive winners. (Barry & Fitzwilliam); Pommery (Irish Distillers/ Pernod Ricard); Roederer (Cassidy Wines); Ruinart ((Edward Edward Dillon & Co); Tattinger (Febvre & Co); Veuve Cliquot ((Edward Dillon & Co.).
WE are at the time of year when the consumer is getting more adventurous about what they buy. People are starting to think about parties and the drinks they can serve when guests have arrived to celebrate the Christmas season. We know that in 2011, the average price of a bottle of wine dropped from €8.62 (2010) to €6.99 (2011) and that the consumer is still very much buying on price. However, retailers beware: during the month of December the wine consumer is more likely to ‘trade up’ than at any other time of year. Our advice is to look at your range and to try to increase the number of mid-priced wines on your shelves, as these are more likely to sell in the pre-Christmas season than at any other time of year. Look also to the specialist and niche wine styles: Port, Sherry, Champagne and Sparkling wines are all more likely to be in demand now. Winter wines, by which I mean the fortified wine styles such as Sherry and Port, are always in demand at this time of year as they are synonymous with Christmas time for many consumers.
Champagne
Champagne is a small region just north-east of Paris in the valley of the Marne. Champagne is probably one of the world’s most famous ‘branded wines’. Here is a list of some better known Champagnes and their Irish distributors: Bollinger (Findlater Wine & Spirit Co.); Bruno Paillard (Searsons); Deutz (Febvre & Co.); Charles Heidsieck (Barry & Fitzwilliam); Gosset (Mackenway Distributors); Krug (Edward Dillon & Co.); Laurent Perrier (Gleeson Incorporating Gilbeys); Moet This Christmas, Moët & Chandon presents its flagship & Chandon (Edward Dillon & champagne, Brut Impérial in a Co.); Pannier (Classic Drinks); limited edition gold gift box. Piper Heidsieck & Pol Roger
Sparkling Wines
The lean times have seen a huge surge in popularity for sparkling wine styles. From Italy, you have Prosecco, one of the fastest growing categories. The driest wines are labelled ‘brut’, and the sweeter ones ‘extra dry’. Prosecco is best-drunk young and should be served well chilled.
New World Sparkling Wines
New World sparkling wine is also a very good alternative. There are many fine examples on the market from South Africa, Chile, Australia, New Zealand, and California, among others. Piper Heidsieck, the hugely popular Champagne brand from Barry & Fitzwilliam.
Port
Port is such a famous wine, that like sherry, the name has been borrowed to define the ‘wine style’. Port originated in Portugal on the steep slopes of the Douro region. Port falls into three categories, white, bottle matured red and cask matured red, but it is the red wines which have made Port’s reputation. Cask aged ports start with the youngest cheaper ruby and moves on to the finest, oldest scented tawnies. All are matured in large wooden casks. The youngest are aged for a minimum of three years (in the case of the young, reasonably priced Ruby Ports), whereas old tawny port are released after 10, 20, 30 and even 40 years of ageing.
Sherry
Sherry is made in two basic ways, one leads to the fino type wines, the others are the oloroso and amontillado style: all are fortified wines. All sherries are wood aged, in what is known as a Solera system, which is a traditional method of gradual blending.
JEAN SMULLEN’S 10 WINE RECOMMENDATIONS FOR CHRISTMAS Fortified Wines Tio Pepe, Gonzalez Byass (€15-17): Barry & Fitzwilliam Warre’s Optima 10 Year Old (in gift carton) (€22-25): Febvre & Co.
Sparkling Wines Jacobs Creek Sparkling Blanc de Blancs (€16): Irish Distillers/ Pernod Ricard
White Wines 2010 Rosemount Crisp Chardonnay Diamond Label (€11.49): Edward Dillon & Co. 2009 Drouhin Chablis Reserve de Vaudon (€22): Gleeson
Incorporating Gilbeys 2010 Masi Masianco (€14.99): Findlater Wine & Spirit Group. 2011 Cloudy Bay Sauvignon Blanc (€27.69): Edward Dillon & Co. Ltd
Party Wines 2009 Barefoot Cellars White Zinfandel (€8.49): Cassidy Wines 2009 [yellow tail] Shiraz (€9.35): Gleeson Incorporating Gilbeys
“What goes with Turkey & Ham?” 2010 Cono Sur Pinot Noir (€7.99): Findlater Wine & Spirit Group. 2009 Sangre De Toro (€9.99): Findlater Wine & Spirit Co.
50|Retail News|November 2011|www.retailnews.ie
Tobacco Products
Burning Issues The €1.9 billion tobacco sector remains a vital one for retailers, despite the continued problems posed by illegal tobacco sales. Ireland’s €1.9 billion tobacco industry remains hugely important for retailers nationwide. Almost one third (29%) of Irish adults smoke, and these smokers make up a massive proportion of your customers. Indeed, it is estimated that smokers visit a shop five times each week, compared to 2.4 visits per week for non-smokers. The good news for retailers is that a tobacco consumer spends, on average, €5.50 on other products in-store per visit. What this means is that the turnover lost for each adult smoker who leaves your store is a whopping €3,500 per year. Considering how brand loyal smokers are (60% of smokers will go elsewhere if their preferred brand is not in-stock), the benefits to retailers of stocking a full range of tobacco products in-store is immense. The lion’s share of Ireland’s tobacco market, €1.8 billion, is delivered from cigarettes, with the balance coming from Roll Your Own (RYO) and cigars which, while only accounting for 5% of the market value, nonetheless make a substantial financial contribution to the retail sector- €89m per annum (Source: Industry Volumes/ Internal Estimates 2010 – 1 & 2). Once considered a niche offering, RYO is enjoying a period of sustained growth and is now a significant profit generator for Irish tobacco retailers. The volume of RYO sales has increased by a significant 26% to date in 2011 (Source: ACNielsen, Extended Scantrack, RYO Volume Share, 52 WE 2/10/11).
The new lower ignition propensity (LIP) cigarettes may go out when left at rest, as they contain specially designed cigarette paper that contain narrow bands which act as ‘speed bumps’.
The regulatory landscape for tobacco products continues to evolve. The latest EU Regulation, in force since November 17, requires all cigarettes sold across the whole of the EU to be modified to reduce the risk of an accidental fire as a result of a burning cigarette being left at rest. When smoked normally, the new cigarettes should not go out, but they may do so when left at rest as they contain specially designed cigarette paper that contains narrow bands which act as ‘speed bumps’. Retailers are already selling these lower ignition propensity (LIP) cigarettes in retail outlets nationwide. Adult smokers should not notice any
difference in physical appearance, taste or flavour of their cigarette brand. Legislation was also published in 2011 indicating Government’s intention to introduce Pictorial Health Warnings on-pack. A consultation process with tobacco companies is expected shortly before the Regulations are finalised. The issue of smuggling is still a massive problem for the trade, however. In Ireland, the illegal tobacco trade represents approximately 24% of all tobacco consumed. In 2010 alone, Government lost VAT and excise in the region of €460m due to the illicit trade, while retailers lost approximately €575m in turnover.
IF IN DOUBT - LEAVE THEM OUT SMOKING IS FOR ADULTS AND JOHN PLAYER BELIEVES THAT CHILDREN SHOULD NOT SMOKE. PLEASE BE EVER VIGILANT. IF THERE IS ANY DOUBT ABOUT A PERSON'S AGE ALWAYS REFUSE THE SALE. INFORMATION FOR TRADE CUSTOMERS ONLY.
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Tobacco Products towards the smoother sector continues Retailers Against Golden growing, with currently 42% of the Smuggling, which represents Virginia/Drum cigarette market in this sector (Source: 3,000 independent retailers The Roll Your ACNielsen, Total Scantrack, Sept. 4, nationwide, called on the Own (RYO) 2011). John Player Gold is a credible Government to introduce a market continues choice for consumers who choose to minimum fine for cigarette growing strongly, move down in strength. smuggling and illegal cigarette as the recession The pack is unmistakably a selling in Budget 2012. The pushes consumers ‘smoother’ brand with its white tones, other measures called for are: to seek out greater clean lines and sophisticated look. It • No increase in excise to face value. The total also provides down the falling price of RYO category a tactile illegal cigarettes; is up 24.1% element, • The provision of an extra vs. last year, with the scanner for Revenue & with Golden texture Customs on a cost-neutral Virginia at 26.1% adding basis to the State; and Drum at With12.5g of tobacco another • The amendment of the 24.1% share of and Rizla Green papers element so Casual Trading Act to make included, the Golden market (Source: important to it an offence to sell excisable Virginia Green combi box ACNielsen, Total a brand of products like tobacco; is up 51% versus last year. Scantrack, Sept. 4, today. • A public awareness 2011). Building campaign to make consumers A major factor fuelling the success upon the aware of the links between the of John Player RYO over the last 18 strong illegal cigarette trade and other months has been the introduction of heritage forms of organised criminal the combi box. With12.5g of tobacco and success activity. and Rizla Green papers included, this of the John box offers the best value available on Player some of the market. John Player 100s John Player Gold is brand, John In Ireland, combi boxes constitute In today’s tough economic climate, impressing consumers who Player Gold 37% of the total RYO market, and consumers are constantly looking for are looking for another is already in the last three years, combi boxes a bargain, without compromising on option in the smooth sector. impressing have grown 24%. Specifically, Golden quality. Not surprisingly, the 100s consumers who are looking for another Virginia Green combi is up 51% segment is growing, up 6.3% versus option in the smooth sector. John versus last year, and Drum combi box last year, and currently accounts for Player Gold is available in both King is growing at 55% versus last year 14.1% of all cigarettes sold in Ireland Size and 100mm length. (Source: ACNielsen, Total Scantrack, (Source: Sept. 4, 2011). ACNielsen, Additionally, Rizla, the world’s Total Benson & Hedges biggest papers brand, has gained 5.4% Scantrack, Benson & Hedges Gold KS still enjoys market share compared to a year ago, Sept. 4, its number one status as the bestand controls 88.7% of the rolling paper 2011). selling cigarette in Ireland with 17.8% market in Ireland. John market share (Source: ACNielsen, Player has Extended Scantrack, Cigarette Volume six 100s Share, 52 WE 2/10/11). Its stronghold John Player Gold variants, remains in the west, with over 30.9% In April, John Player launched John offering a market share in Connaught. Player Gold, the new smooth cigarette wide choice Benson & Hedges Gold KS have offering within the John Player family. for the adult recently introduced the latest line The trend of consumers moving consumer in terms of taste, strength and MANAGING the tobacco category is especially important around Christmas time. price. John Retailers should ensure they order their stock in time and that they have the Player Blue optimum levels of all brands in stock to cover demand over the busy festive period. John Player Blue 100s 100s is the is enjoying strong sales fastest growing growth, with sales up Daily Checklist: 100s brand, up 28.2% versus last year. • Merchandise your tobacco unit to capacity across all ranges first thing in the 28.2% versus morning – Tobacco Vending Machines should have at least one day’s sales last year. Superkings is the biggest 100s brand capacity. Then check stock levels in the afternoon and merchandise if required. on the market, accounting for 39.1% of • Ensure you have adequate and balanced stock cover across your range. all 100s cigarettes sold. JPS 100’s are • Ensure that you merchandise stock gaps in Cigars & Tobacco. up 5.5% vs. last year, offering adult • Tobacco as a category requires early morning staff attention. Furthermore, smokers a varied choice for less money prior to a key holder leaving the premises, check stock levels and merchandise (Source: ACNielsen, Total Scantrack, again if necessary. Sept. 4, 2011).
Managing the Tobacco Category
RRP
7.80
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Tobacco Products that capture an array of different music genres. To ensure you have adequate stock, talk to your local JTI Trade Marketer, visit your local Cash & Carry or place an order on 01 4040200. Benson & Hedges Gold KS still enjoys its number one status as the best-selling cigarette in Ireland with 17.8% market share.
Silk Cut
As Ireland’s number one cigarette brand, Silk Cut has enjoyed over 25% market of limited edition packs. There are share since 1994 and is admired as five unique bold designs enhancing a premium brand that provides a Benson & Hedges’ big brand status, consistently high quality product to with hidden brand consumers (Source: elements cleverly ACNielsen, Extended encompassed in each Scantrack, Cigarette design. Volume Share, 52 WE 2/10/11). Silk Cut offers Benson & the most diverse range, Hedges Silver with nine individual Slide brands making up the Benson & Hedges Silk Cut house. One Silver Slide is now in four adult smokers Ireland’s fastest choose to purchase growing cigarette a Silk Cut product brand (Source: over other competitor ACNielsen, Extended brands Scantrack, Cigarette (Source: Volume Share, YTD, ACNielsen, WE Sept. 4, 2011). Benson Extended The iconic Benson & Hedges Scantrack, & Hedges house Silver Slide is now Ireland’s Cigarette offers a new smoking fastest growing cigarette Volume experience for existing brand. Look out for the new Share, 52 adult smokers with Music Edition Packs that WE 2/10/11). its unique slide pack capture an array of different music genres. During the last retailing at €8.00. five decades, Look out for the new the brand has Music Edition Packs
Hamlet HAMLET continues to be the best selling cigar in Ireland (Source: ACNielsen, Extended Scantrack, 35.2% SOM, WE October 2, 2011). The success of the brand can be attributed to a long and rich brand heritage, high levels of awareness and loyalty among cigar smokers. 2010 saw Hamlet unveiling a stylish and modern new look. The full range of large and miniature cigars features subtle design changes, including a redesigned background, hand lettered font and updated logo: a contemporary new look but still unmistakably Hamlet. Still the market leading cigar brand, Hamlet is a must stock for retailers this Christmas period.
demonstrated its ability to remain a modern classic, with subtle improvements to product and pack, while remaining true to its original style. Silk Cut recognises the need to Silk Cut SuperSlims are continually available in both Purple and evolve in order Menthol variants, offering to accommodate 63c profit per pack. the everchanging needs of today’s existing adult smokers. Innovation is at the forefront of Silk Cut’s brand strategy with unique pack formats, such as SuperSlims, illustrating their dedication to the further development of the Silk Cut brand. Watch out for a revolutionary Silk Cut innovation coming soon. SuperSlims redefines the Silk Cut brand, providing existing adult
As Ireland’s number one cigarette brand, Silk Cut is admired as a premium brand that provides a consistently high quality product to consumers.
smokers with a stylishly unique pack and product format. SuperSlims is available in both Purple and Menthol variants, offering 63c profit per pack. The new intricate pack design has proven a success, with share growth increasing by over 50% since the launch (Source: Silk Cut Sept YTD 2010 V YTD 2011 - ACNielsen).
Mayfair
Since its launch in March 2000, Mayfair has been growing from strength to strength, becoming widely identified as one of the best ‘value for money’ brands in Ireland. Available in King Size and Superkings, Mayfair is competitively priced, offering real value for money, while also delivering the retailer a very favourable cash margin.
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Tobacco Products Amber Leaf
Amber Leaf has been driving the growth of the RYO sector. It alone has grown by 80% year to date. Its rapid growth throughout 2011 has meant that Amber Leaf has become Ireland’s best selling RYO brand (Source: ACNielsen, Extended Scantrack, RYO Volume Share, 52 WE 2/10/11).
with a price mark of €7.80 per 20s pack. Marlboro Gold Touch comes in a modern, compact box that fits easily into a pocket or handbag. “The thinner design of the cigarette as well as the soft, subtle aroma of Marlboro Gold Touch offers Irish adult smokers a new sensation both in touch and flavour,” says Zoe Smith, Marketing Manager at Philip Morris Ltd. “As part of our trade support activity , trade customers will also receive €10 off every carton of Marlboro Gold Touch purchased between now and end December 2011.”
Vogue Perle
September saw Ireland’s oldest tobacco company, PJ Carroll, launching Vogue Perle, the new affordable premium cigarette from the House of Vogue. Vogue Perle comes in a premium pack with elegant features designed in Paris and is slightly smaller than normal cigarette packs. Vogue Perle is Ireland’s first demi-slim cigarette. The demi-slim cigarette is slightly longer and thinner than a normal king size cigarette, but delivers the same satisfying smoking experience. Launched nationally across all retail channels in two variants, Bronze and Menthe, both in a 7mg smooth format, Vogue Perle has a competitive RRP of €8.00 to offer quality at an affordable price point. Marlboro Gold Touch is an innovative new dimension in smoking: slightly thinner than Marlboro Gold Original, it offers a taste that is refined and smooth.
Marlboro Gold Touch
Marlboro, the world’s number one cigarette brand, has launched the newest product on the Irish market – Marlboro Gold Touch. Marlboro Gold Touch is an innovative new dimension in smoking: slightly thinner than Marlboro Gold Original, it offers a taste that is refined and smooth. Marlboro Gold Touch is a high quality cigarette that is slimmer to the touch than conventional cigarettes and is now available in Cash & Carry or directly through John Player Ltd. The brand is very competitively positioned
Vogue Perle comes in a premium pack with elegant features designed in Paris and is slightly smaller than normal cigarette packs.
The Smoking Statistics • 29% of adults in Ireland smoke. • Smokers visit your shop 5 times a week; non smokers visit 2.4 times per week. • A tobacco consumer spends €5.50 on other products. • Smokers are extremely brand loyal. • 60% go elsewhere if their brand is not in stock. • The turnover for each “lost” adult smoker is an astonishing €3,500 per annum.
BIC BIC is the world’s most successful manufacturer of branded lighters. In fact, BIC has more than 30 years of expertise in providing safe, reliable lighters to millions of consumers around the world, BIC manufactures and sells five million lighters worldwide every day. While the amendments to the Public Health (Tobacco) Act which came into force on July 1, 2009, prohibit the display of tobacco products, they do not include lighters, which can therefore still be displayed as usual in-store (provided, of course, that lighters don’t bear any direct or indirect advertisements for tobacco products). According to research commissioned by BIC, pocket lighters sales double when lighters are displayed on the checkout in a display stand (Source: Survey conducted by Action Plus, Ireland Lighter Shopper Study, July 2011, involving 800 shoppers. Results comparing sales with and without stand on the till.) The BIC range includes classic flint lighters, electronic lighters, and a whole range of decorated lighters. All BIC lighters sold in EU/UK comply with the safety standard ISO 9994 and with the EN 13869 child resistant standard. However, 75% of lighter models sold in EU do not comply with European safety standards (Source: PROSAFE). Selling noncompliant lighters may result in being fined up to €3,000 per lighter sold. So if you want quality, reliable lighters for your store, think BIC.
According to research commissioned by BIC, pocket lighters sales double when lighters are displayed on the check-out in a display stand.
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Market News Danone Greek: New Yogurt Sensation NEW Danone Greek yogurt is a rich, smooth and creamily indulgent eating experience that consumers will want to savour and enjoy. Danone Greek comes in a choice of three flavours: natural, strawberry and pear, in twin packs of individual 125g portions. The launch of the new Danone Greek range nationwide is supported by a series of in-store tastings in Tesco, Dunnes Stores, Superquinn and SuperValu outlets across the country, as well as a 20-second TV advert and strong Grecian-themed in-store point of sale materials. Pictured are Aoife O’Shea, Assistant Brand Manager, Danone Ireland, with model Georgia Salpa.
Dairy Milk Shares the Love AS part of its largest ever Irish marketing campaign, Cadbury Dairy Milk is launching the Cadbury Dairy Milk Share a Square Smartphone App in Ireland. The App will transform the user’s Smartphone into a virtual bar of Cadbury Dairy Milk, offering a range of interactive features from peeling back the wrapper on-screen to breaking a virtual square of Cadbury Dairy Milk. A key element of the App will see it integrated with Facebook to allow users to share virtual squares with their Facebook friends. When users collect eight squares, they will then be rewarded with a real bar of Cadbury Dairy Milk during the current campaign, with additional App updates released for future campaigns.
Toblerone Pastry from Cuisine de France CUISINE de France has teamed up with confectionery experts Toblerone to launch Ireland’s first branded pastry treat. Available now, the Toblerone Pastry combines the finest Danish pastry with smooth, Swiss chocolate for a delicious, on-the-go treat. “Not only is the new Toblerone Pastry delicious, it’s instantly recognisable ‘triangle’ shape and branded sleeve have great shelf standout and we’re confident they will be a real hit with consumers,” said Lisa Ronayne, Product Manager, Viennoiserie, Cuisine de France. A selection of branded POS, including display units, posters and shelf talkers, is available to support the launch. Call Cuisine de France on 1850 777 000 for more information.
Knorr’s Asian Connection KNORR have joined forced Patak’s and Blue Dragon to launch a delicious new range of professional Indian and Oriental pastes onto the Irish market. Both product ranges contain all the fresh ingredients a chef would expect to find in an authentic Indian or Oriental dish made from scratch, all blended to perfection. Using the Pathak family’s closely guarded secret spice recipes, Knorr Patak’s mouthwatering new range of Indian Professional Pastes includes: Tandoori, Tikka, Tikka Masala, Korma and Madras, while the Knorr Blue Dragon pastes range includes Thai Green Curry, Thai Red Curry, Laksa Curry and Char Siu. Pictured at the launch event are (l-r): Anjali Pathak, Brand Ambassador, Patak’s, and Sarah Branagan, Category Mix Manager, Sauces (UK and Ireland), Unilever Food Solutions.
Velvet Balm Soothes Sore Noses
WITH winter on the doorstep, leading paper manufacturer SCA Hygiene Products UK Ltd is launching its latest tissue product, Velvet Balm, containing extracts of aloe vera and camomile. Velvet Balm tissues are beautifully soft and with an added layer of balm lotion on each tissue, give skin the luxurious comfort it deserves. In keeping with the Velvet tissue range, Velvet Balm is fluffed up with air and is the only tissue on the market that uses this technique, ensuring quality and softness. The launch of Velvet Balm coincides with the company’s first tissue TV commercial, which has been airing since November 7.
Brennan’s Three-in-a-Row JOSEPH Brennan Bakeries Quality Management Systems have been recognised for the third year in succession at the recent 2011 Q Mark Awards. “This is the third year in a row that Brennans have been awarded the Q Mark for our Quality Management Systems, which is a remarkable achievement for the organisation and proves that our commitment to quality remains a top priority,” stated Colm Brennan, Deputy Managing Director, Joseph Brennan Bakeries. Pictured with the 2011 Q Mark Award from EIQA are (l-r): Sean Gaffney, Tommy Walsh, Donna Charlton, and Stephen Baker.
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Store Focus
Valentine’s Day! Paul Valentine’s stores in Carlingford, Co. Louth, are successfully trading through the recession, despite the proximity of competition from retailers in Northern Ireland. October 2009 saw Paul Valentine realising a long-held ambition to go into business for himself, when he took over the shop on the Newry Road in the centre of Carlingford, Co. Louth, and began trading as a fully independent grocery retailer under the name ‘Valentine’s’. The summer of 2010 saw Paul acquiring a second store in the village, and the intervening months have seen both shops successfully trading under the XL and Xpress Stop banners. So how can a retailer so close to the Border open two successful stores in less than a year in the midst of a deep recession? “This is a rural location and we had a lot of customers looking for miscellaneous and sundry items such as paint brushes and hooks, hardware-type purchases,” the store owner explains. “We wanted this shop to function as a grocery outlet, so in order to retain that custom we acquired a second premises, where we now offer a very varied selection of products.”
The Right Choice
While a number of symbol groups expressed an interest in developing a partnership with Paul, his close working relationship with the local Value Centre in Dundalk prompted him to look first at the XL brand: “The XL brand was one that appealed to me very much. I really liked the XL image and I felt that the XL brand would suit my customers and the way my shop works. The fact that I already knew the staff in Value Centre and BWG to be extremely helpful
Store owner Paul Valentine, pictured outside his XL store on the Newry Road, Carlingford. and professional gave me confidence in XL. After I met with the XL team, I knew it was the right choice for me.” Paul was right to be confident in his new symbol group partner. Valentine’s XL traded through the revamp of the shop. The development was project managed expertly, allowing the store to be redeveloped in sections, to minimise disruption to customers, and works were completed in just 10 working days. Paul explains why it was so important that the doors stay open during the development: “Dundalk and Newry are
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Store Focus accommodation in the locality meant that not only was there an increase in convenience trade, but there was also a surge in grocery sales, thanks to a combination of the larger stock selection and the value on offer from the XL group. Value for money is particularly important in shops like Paul’s, which is sited so close to the Border. Paul has implemented XL’s KVI price structure to ensure his pricing is competitive. The increase in wine trade may seem unlikely given the strong competition that exists just up the road, but the competitive price point on wines in XL Carlingford has managed to grow sales. Other items in the shop actually draw trade from Northern Ireland. Cadbury and Tayto products, black and white pudding and services like the Lotto all serve to bring trade south of the Border.
both close to Carlingford. Although this shop is not targeting weekly trolley shoppers, it is very much suited to a basket shop. If people changed their shopping habits because we were closed, it would damage the shop. Because the work was taking place in July, it was also important to keep trading, as Carlingford gets a strong tourist trade during the summer and we needed to take advantage of that.”
New Category Planograms
As well as installing the XL image, the project included the design and implementation of new category planograms for the shop that produced immediate results. The relocation of the coffee machine doubled sales practically overnight. Clever use of space allowed the shop to offer even greater product selection to customers, despite the fact that the project had not increased the retail space in the shop. “We did not experience any significant impact on sales during the work, which shows just how good a job XL did in planning this development,” the store owner explains. “Once the new shop was trading, we noticed increases in sales, particularly in coffee, the deli and in wine.” Carlingford usually experiences a sales hike of around 40% during the summer season, due to the presence of so many tourists in this most picturesque location. The presence of so many holiday homes and self-catering
Serving the Local Community
“These are tough times to run a business,” admits Paul, “but if you have the right plan, the right product and the right staff, then you can grow your business, even in a recession. We’ve been very lucky with our staff and our partners in XL. My wife Carol and I both work in the shop and along with our staff, we deliver excellent customer service. It is another thing you need to do to differentiate your business and an area where XL supplies great advice and support. All my staff are local to the area and there is a real sense of being part of the community. The XL brand fits very well with that identity we have developed as a local shop that is very much part of the town.” Paul’s XL store is at the heart of the community, employing local people, as well as supporting local sports clubs and school charity events. By positioning his business correctly and by offering top quality product, good value for money and excellent customer service, he has managed to grow his business thanks to the hard work of himself, his wife, all his staff and the XL team.
Fact File Owner:
Paul Valentine
Location:
Newry Road, Carlingford, Co Louth
Size:
4,500 square feet retail space
Number of Staff: 19, full time & part time Opening Hours: 07:00-22:00, Monday-Sunday
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SHOP 2011
Plenty of Business Was ‘Bagged’ at
SHOP 2011
SHOP 2011 proved a tremendous success, showcasing the best of Irish products from over 140 exhibitors over the course of the three-day event. to discover a wide variety of new merchandise. This year’s exhibition spanned over 1,500 square metres and was home to over 140 exhibitors over the course of the three days, many of whom have already signed up for SHOP 2012. SHOP 2011 played host to a number of show features, including some new additions, such as the Knowledge Sharing Village and the French Pavilion. Familiar features of the show, such as the Irish Cheese Awards, Product of the Show Awards plus the well-known Association of Craft Butchers’ National Sausage and Puddings Final, all attracted huge entries and appealed to many visitors at the show. Exhibitor Vincent Dennehy, Company Sales & Marketing Director for Kilcuan, comments: “This is our first time exhibiting at SHOP, and we could not be more delighted with the response. We will be taking away over 50 good solid leads of both distributors and retailers, and have also met the Purchasing Director of one of the largest multiples! The show features a great mix of products on offer and the Pictured are (l-r): Denis and Gerard McCarthy, founders audience is well balanced, with of Drombeg Irish Oak Wood Mature Spirit Liqueur, distributors, independents with Sheila Gallogly, Managing Director of Shelfspace, and multiples. It’s a fantastic sponsors of the Product of The Show Awards, and John opportunity to network and O’Connell, also a founder of Drombeg Irish Oak Wood learn, and the show was very Mature Spirit Liqueur, winner of the Best of Irish professionally organised.” Product Award. THOUSANDS of retailers and buyers descended upon SHOP 2011, Ireland’s definitive food & drink, retail & hospitality exhibition, which was held in the RDS Simmonscourt, Dublin, from September 27-29. As a key event in the industry calendar, SHOP this year continued to offer all the right ingredients to help exhibitors and visitors alike achieve a much needed sales boost and act as a catalyst for completing business deals. For 60% of exhibitors, SHOP was a new forum for them to showcase their innovative products and business solutions, and therefore provided visitors with a unique opportunity
Educational Features
Educational features such as the learnShops™, the Knowledge Sharing Village and the Retail Doctor’s workshops were all well received and offered visitors to the three day event invaluable and free advice. Buyers and retailers were attracted by the keynote speakers at SHOP 2011, who came from a broad spectrum of backgrounds. They included: Conor Hyde, Managing Director of Bullseye Food Marketing; Tom Collins, Strategic Business Analyst at Bord Bia; and Tara Buckley, Director General of RGDATA. Enterprise Ireland also joined the respected list of speakers, with Jennifer Melia, Manager of Consumer Foods, Horticulture and Seafood, offering visitors advice on business funding and Enterprise Ireland’s Lean Business Offer.
Product of the Show Awards Awarding excellence in the Irish food sector, the highly anticipated Product of the Show Awards, sponsored by Shelfspace, saw The Scullery walk away with the title of Overall Product of the Show, as well as receiving the award for the Best Branded Product including Packaging. Drombeg Irish Oak Wood Matured Spirit Liqueur was presented with the award for Best Irish Product of the Year, and Slender Choice Ltd claimed the award for Best New Taste 2011. Florrie Purcell, owner of The Scullery, commented: “I’m absolutely
www.retailnews.ie|November 2011|Retail News|61
SHOP 2011
Kevin Sheridan from Sheridan’s Cheese, with Marion Roeleveld of Killeen Farmhouse, whose Killeen Goat Mature Cheese was named Supreme Cheese 2011.
Florrie Purcell, owner of The Scullery, winner of the Overall Product of the Show Award, with Sheila Gallogly, MD, Shelfspace, Award Sponsors.
thrilled to have won the Overall Product of the Show Award, as well as the award for the Best Branded Product: I don’t think I have yet come back down to earth! I have already had many calls from well-wishers, and I have no doubt that this will do wonders for awareness of my business and I will definitely increase my sales as a result. “Times are difficult for artisan producers like myself, so it’s invaluable to have my achievements recognised. Exhibitions like SHOP are great forums for us to place and brand our products in front of the key industry decision-makers.” The SHOP Product of the Show Awards were sponsored by the newly added addition to the Marla.ie business, Shelfspace. Managing Director Sheila Gallogly comments: “The judges were delighted to present Florrie with the prize – it was so well deserved and her
Simon Coveney TD, Minister for Agriculture, Food and the Marine, is pictured with Matt Benyon, MD, easyFairs, event organisers, at the official opening of SHOP 2011.
product was just amazing. Florrie will receive €2,000 worth of strategic retail support from Shelfspace and we will be working closely with The Scullery over the coming year to implement this within the retail spectrum.” Sheila further added: “For the past two years, we have sponsored SHOP under our marketing company, Marla.ie. This year, with the establishment of our new business Shelfspace, we felt it appropriate to offer the winner the much needed retail support that Shelfspace offers. We have a nationwide team of sales representatives that provide in-store support to our client base at retail level. From in-store audits and competitor analysis to support at national account level, our goal for all clients is very straight-forward: to ensure their products are on the shelf 100% of the time - it’s simple, yet powerful. I would also like to take this opportunity to thank the judges for their time and effort in being involved.” There were eight categories in total at this year’s event. The winners are: Best Innovative Product: Gerflor Ltd; Best of Irish Product: Drombeg Whiskey; Best New Taste: Slender Choice Ltd; Best Value for Money Award: Pidy Ready to Fill Pastries; Best Branded Product including Packaging: The Scullery; Retail Technology Product of the Show: Steplift; Overall Product of the Show: The Scullery; People’s Product of the Show: Pidy Ready to Fill Pastries.
Ireland’s Supreme Cheese Award
With the very best in Irish cheese producers vying for the top crown, it was Co. Galway producer Marion Roeleveld of Killeen Farmhouse who impressed the judges with her Killeen Goat Mature Cheese being named Supreme Cheese. The Irish Cheese Awards, now in their second year, were created in order to recognise the outstanding talent amongst homegrown Irish cheese producers and provide a platform for local producers to get in front of key decision-makers and buyers from across the food, drink, retail and hospitality sectors. Other winners included Eamon Lonergan for his Knockanore Smoked, Jane Murphy for her Ardsallagh Cranberry, David Tiernan for his Glebe Brethan; as well as J&L Grubb for its
Tom O’Dowd from Astron Engineering, Minister for Agriculture, Food and the Marine, Simon Coveney TD, and Eugene Scally, SuperValu Clonakilty.
Crozier Blue, the Steele Family for Milleens Dote, Aillwee Cave for Burren Gold, and Newmarket Creamery for Extra Mature White. Speaking on the win, Killeen Goat Mature cheese producer, Marion Roeleveld said: “To be crowned the Supreme Cheese at the Irish Cheese Awards at SHOP 2011 is a terrific recognition for the hard work that we’ve put into making Killeen Goat Mature the best it can be. We believe this win will have a positive impact on our brand, and open doors to retailers who appreciate quality Irish cheese.”
ACBI National Sausage & Pudding Champion
This year saw a high level of entries to the hugely anticipated ACBI National Sausage and Pudding final and the Speciality Food Final, both held at SHOP this year. Bill Morgan of Roger Finnerty’s butchers, Oughterard, demonstrated his reputation for quality by scooping the top awards in this year’s National Sausage and Pudding final and was also named the Supreme Champion overall. It was James Lawlor from Rathmines who walked away with the Supreme Champion Crown in the Speciality Foods Final for his Rack of Lamb with Pistachio Nut Crust. Commenting on the SHOP 2011 event overall, Matt Benyon, Managing Director of easyFairs UK & Ireland, says: “We are very pleased with the glowing feedback we’ve had from visitors who attended SHOP 2011, and it was evident that even in the current climate, people came to the show to source new products and ideas, and most importantly, to do business. We saw a substantial increase of new exhibitors attending SHOP 2011, and this demonstrates how much retailers value the exhibition to help them grow their business.” For more information, visit www.easyFairs.com/SHOP.
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Shelf Life
TRADITIONAL gift giving has just received a massive make-over, with the launch of Redribbon Gift Box Experiences! This extraordinary gift idea boxes a host of thematically categorised gift experiences to suit every age and budget into one tastefully wrapped gift box suited to your recipient’s personality and preferences. It is then gifted to the recipient, who selects from the guide book whichever experience they prefer, with prices starting at €19.99. The six key boxes include: Perfect For Her, Adventure Days, Ultimate Choice, Paintballing for 2, Getaway Break for 2; and Fun Days Out. Essentially, Redribbon Gift Boxes offer a wide selection of activities in a single voucher, so people who receive them still have a choice. Redribbon Gift Box Experiences are on sale in stores nationwide including Dunnes Stores, Debenhams, Shaws, Heatons, McCabes, Golden Discs and Clerys, or by logging into www.redribbon.ie. PICTURED at the All Ireland Mushroom Conference, which took place in Monaghan recently, are (l-r): Michal Slawski, Bord Bia; Gerry Walsh, Teagasc; Shane McEntee TD, Minister of State at the Department of Agriculture, Food and the Marine; Gerry Lavery, Permanent Secretary of the Department of Agriculture and Rural Development, Northern Ireland; and Mairead Kilpatrick, Agri-Food and Biosciences Institute. A GROUP of 12 ambitious seafood entrepreneurs from County Donegal have become the first in the North West region to benefit from a new intensive business development programme. The ‘Donegal Seafood Development Programme’ was introduced in the North West region after a similar, highlysuccessful syllabus was made available to participants in coastal communities in West Cork and Wexford. Aimed at both start-up and existing seafood enterprises, the course was co-ordinated by BIM, in conjunction with Donegal County Enterprise Board, with training and mentoring support delivered by James Burke and Associates. Pictured at the official graduation ceremony are (l-r): Stephen and Anthony Kearney of Kearney Brothers Ltd.
PERSIL is teaming up with the celebrated Irish fashion designer Peter O’Brien, TV3’s Xposé’s Lisa Cannon and Anna Fahy from Dunnes Stores to launch the Persil Irish Fashion Awards 2012. Now in its 13th year, the hotly contested annual award is the largest student fashion design competition in Ireland. It is a once in a lifetime opportunity for young, aspiring fashion design students to make their mark in today’s highly competitive fashion industry - and the ultimate prize is an amazing €10,000 to kick-start their budding fashion careers. Persil have chosen the aesthetics of sport or sportswear as the challenge for the 2012 awards. Pictured at the launch are (l-r): Anna Fahy, Head of Ladieswear Design, Dunnes Stores; Fashion Designer Peter O’Brien; Lisa Cannon from Xposé; and Tatenda Matemera, Assistant Brand Manager for Persil. BEN & Jerry’s is overcome with egg-citement, with the news that they’ve won a Good Egg Award for their continued work in animal welfare and, in particular, the fact they use free range eggs and products. Awarded by The Compassion in World Farming, The Good Egg Award will join the recent Good Dairy Award, won earlier in the year for Ben & Jerry’s commitment to sustainable dairy through their Caring Dairy programme. UNILEVER Food Solutions are searching for the most talented and creative young chefs in Ireland as part of the 15th annual Knorr Student Chef of the Year competition! Knorr Student Chef of the Year is the biggest competition of its kind in Ireland and remains an opportunity for chefs of the future to showcase their talent, love of food, creativity and innovation in front of some of Ireland’s leading food professionals. This year’s grand prize includes a food-photography experience with one of the UK’s most acclaimed food photographers and an unforgettable culinary evening in Heston Blumenthal’s multi-award winning The Fat Duck Restaurant! Pictured at the launch are judges (l-r): Ciarán Scully, Chef Lecturer, Cork Institute of Technology; Mark McCarthy, Business Development Chef, Unilever Food Solutions; and guest judge Martin Shanahan, proprietor of award-winning fish restaurant, Fishy Fishy in Kinsale, and presenter of TV series ‘Martin’s Mad About Fish’. For more information, see www.unileverfoodsolutions.ie/knorrstudentchef. NIGHTLINE has warned retailers to watch out for criminals as they accept deliveries in advance of the busy Christmas period. A trend has emerged for conmen and thieves to monitor retail outlets for drivers as they deliver goods. When they see a delivery has been completed and the driver depart, they enter the retailer’s premises and claim that they are a colleague of the driver who has noticed a mistake and that they have been instructed to take the consignment back. If they are unchallenged, they can make off with thousands of euro worth of goods. Retailers are advised to call the delivery company’s office or their supplier if anyone claims to have been authorised to take back a collection which has been made. No genuine delivery driver will mind the short delay but it may just save the shop from a major loss of stock. LEADING European trade show organisers Koelnmesse will expand its line-up of trade fairs in the food segment in autumn 2012 with the addition of C-Shop Cologne – The European Convenience Show. The trade fair, which will take place from November 4-6, 2012, will be a showcase for shop concepts that provide consumers with fast, flexible and attractive “to go” offerings for all situations, including forecourt stores, walk-in kiosks, small grocery stores etc.
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