Retail News December 2008

December 2008

Over 50 years in the business, working hand in hand with our retailers.

ADM Londis plc is the only symbol group to offer retailers ownership and profit sharing through shareholding in the group. So the more we grow, the more your profits grow.

Working together with Londis, you will gain a partner that listens to your needs and understands today’s competitive marketplace.

You can benefit from our tailored range of services including logistics, unique store design, marketing, retail information systems and quality retail management support systems in addition to extremely competitive terms.

If you would like to learn more about our unique approach to retailing, please contact Jerry McDonnell, Sales Manager on 1890 333 373 or email jerry.mcdonnell@londis.ie for further details.

Close to you, because it belongs to you.

December08Contents

BEER COMES

■ inside view

Facing the Challenge 2008 will probably be remembered by most as a turbulent year for the retail trade in general and the FMCG market in particular. The ‘r’ word seemed to be on everyone’s lips as the year progressed and September saw the news become official: Ireland was experiencing its first recession since the Celtic Tiger’s roar. The only chink of light shining through the doom and gloom seems to be that we are not alone: the whole world seems to be experiencing something of a financial meltdown, with even China’s robust economic growth slowing to a more modest crawl.

Here in Ireland, the outlook for 2009 is for a challenging retail environment, but how will the retail trade cope and what can be done to remain competitive? Damian O’Reilly from DIT’s School of Retail Management gives his unbiased view as to the current state of affairs and advises retailers on the steps they need to take to survive (Page 28), while Carmel Linnane focuses on practical steps to making it through an economic slow-down (Page 46).

We also look back on 2008 in the FMCG market, focusing on the highs and lows during a year when most of the country’s big retailers posted record results despite the difficult trading environment (Page 18-25).

Elsewhere, we examine the fall-out from the pork crisis at the beginning of December (Page 4), asking if the total recall of all pigmeat was an unnecessary precaution; we hear how the VAT hike is hitting border retailers worst (Page 8); and we talk to John Teeling, Chairman of Cooley Distillery, recently named World Distiller of the Year by the IWSC, the first time an Irish distiller has won this prestigious award (Page 40).

Finally, let me take this opportunity to wish all our readers and advertisers a very happy Christmas and a peaceful and prosperous New Year.

“Celebrating 50 Kathleen Belton, Editorial & Marketing Director.

years serving the Irish grocery trade.”

TO IRELAND… Straight from your favourite cartoon, beer has finally arrived to bars and off-licences across Ireland.

Launched in October 2008, the iconic brand is being distributed by The Gleeson Group (Ireland’s largest supplier of packaged lager).

Launched globally by a successful Mexican businessman, Rodrigo Contreras, The Gleeson Group won the distribution rights here in Ireland and are actively rolling the product out to every county in Ireland. Gleeson has full national coverage and trades with both on-premise and off-premise outlets. is an exact replica in terms of packaging and is instantly recognisable by millions of consumers worldwide.

Gleeson Group Marketing Manager, Keith O Haire, commented: “We believe

will bring fun and levity into the

trade and give consumers the opportunity to experience a piece of iconic popular culture. We have high expectation for the brand and are already inundated with calls and emails – at the moment our biggest issue

Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com Editor: John Walshe

is keeping up with demand.”

johnwalshe@tarapublishingco.com

Chief News Reporter: Pavel Barter

Wine Correspondent: Jean Smullen

Financial Correspondent: Carmel Linnane

Advertising Manager: Aaron Stewart

Advertising Executive: David Kelly

– the cause of and solution to all of life’s problems…

T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

Tel: (01) 2413095. Fax: (01) 2413010. ISDN: 01 2413050 Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Subscription to Retail News: €110 plus VAT Email: tracy@tarapublishingco.com Origination by: Rooney Media Graphics

Printed by: Graham & Heslip

1

S T E P L I F T LT D . . . I N T R O D U C E M O V E X X TO THE IRISH MARKET

k r o w y v a e h f o t h g li s e mak The T1000 is a compact and ultra user-friendly dragger. It drags combi trolleys, containers and other rolling objects simply and without physical effort from one place to another, however bumpy or steep the route is.

Steplift are delighted to announce the sole distribution of the Movexx T1000 drag machine in both north & south of Ireland.

For a free demo please do not hesitate to contact one of our sales team on 01-401 9640.

Users of the Movexx T1000 include: • retailers • laundries • hotels • distribution companies • flower - and fruit auctions • breweries

• supermarkets • airports • growers/horticultural sector • nursing homes and hospitals • printers and haulage companies • industry

‘VISIT OUR STAND M19 AT THE CATEX SHOW IN THE RDS DUBLIN, 9TH – 11TH FEB ‘09 TO SEE IT FOR YOURSELF!’

Steplift Ltd, Unit 31 Block 503C, Greenogue Business Park, Rathcoole, Co. Dublin.

Phone: 00353 1 4019 640 / 641 Mobile: 087 2324404 Fax: 00353 1 4019 025 Email: info@steplift.com Web: www.steplift.com

December08Contents

Contents December 2008

News 4 Pork Recall “Disproportionate”.

5 Beef Given the All Clear; Retailers Sourcing Goods in Northern Ireland; Shopping for Free Parking.

6 Feeling the Credit Crunch; Red Tape Hampering Food Industry?

7 Consumers Turn to Low Cost Goods.

8 VAT Changes Hitting Border Retailers Worst; Beamish & Crawford Brewery to Close.

9 Ireland’s First Motorway Service Area Officially Opens; ADM Londis Appoint Commercial Director.

10 Food Industry Facing New Challenges; ABFI Goes Online.

4

18

Karen Meenan’s Top Tips 15 Answer Karen Meenan’s 11 quiz questions to see if you’re on course to maximise your net profit.

2008: The Year in Review 18 A month-by-month guide to the stories that made the headlines throughout 2008.

The Retail News Interview 28 Damian O’Reilly, School of Retail Management, DIT, on the current trends and future prospects for Ireland’s retail industry.

Shop Profile 28 Paul and Regina Kiernan’s Gala store in Enfield, Co. Meath, was recently named Gala Store of the Year 2008 after just two years in business.

Whiskey 40 Following Cooley Distillery being named World Distiller of the Year at the 2008 IWSC Awards, Chairman John Teeling explains the secrets behind their success and predicts a bright future for Irish whiskey.

Music Use in Shops 43 Any performances of music in retail premises, including use of a radio or CD player, is regarded as public performances under copyright law, and requires an IMRO licence.

Money Matters 46 Carmel Linnane advises retailers on how to survive an economic slowdown, such as the one we are currently experiencing.

40 maker with Cono Sur, talks us through the incredible achievements of this innovative Chilean winery and outlines how the wine industry will change over the coming years.

On The Vine 50 Jean Smullen examines what is likely to happen in the Irish wine market throughout 2009 and advises on how to maximise wine sales.

Shelf Life 52 All the latest news and gossip from the trade.

Wine 48 Adolpho Hurtado, wine-

48

Regulars 12 Industry News 37 Update Sectoral Reports 32 Breakfast Time 3

December08News

Pork Recall “Disproportionate” AS the dust settles on one of the largest food crises of 2008, which led to 1,800 job losses, questions are being asked about the government's reaction to the discovery of harmful dioxins in pigmeat. The decision to initiate a full recall of pigmeat products, despite the fact that less than 10% had been deemed harmful, has been called “disproportionate” and “knee-jerk” by industry commentators who spoke to RETAIL NEWS. At the very least, others said, it suggests a severe lack of trust and confidence, at the highest levels of authority, in current traceability systems.

Upon confirmation of elevated levels of dioxins, on December 6, 2008, all Irish pork and bacon products from pigs slaughtered since September 1 were recalled from retail. This precautionary step was designed to reassure consumers that the contamination would be immediately dealt with, but Pat Brady, Chief Executive of the Associated Craftbutchers of Ireland (ACBI), contended that it was unjustified.

“If I was the Minister for Agriculture and I was approached with this information, I would have told them to go out and fix it,” he said. “What do we have?

Nine farms, all known and with full traceability in the food sector. Why didn't they follow the trails from those nine farms and recall the product. What's the problem? Why deem everything to be unsafe and work back to be safe? It's like sinking a ship to find out how many people can swim. There's no underhandedness about this: everything is clear. If a toy is faulty, they don't recall every single toy on the shelves. It really could have been made less of a World War III and more of a routine problem. Some serious questions have to be asked and answered about the proportionality.”

Tara Buckley, RGDATA Director General, was in agreement. “The issue for some retailers is that it was a call of 100% of products when we have members who go to a lot of trouble to source organic and local produce,” she told RETAIL NEWS. “Was there not some way of using the traceability system, to prevent all that pork from being withdrawn, when 90% is perfectly fine? The animals would not have been fed any of that feed.

4

It has been frustrating from their perspective. Members are very disappointed: they are removing product off their shelves that they know is 100% traceable yet had no intervention in that type of feeding process.”

The Food Safety Authority (who did not respond to a request for comment for this article), have stringent traceability practices in place for beef products, as result of the BSE epidemic. Via this EUenforced ‘from farm to fork’ decree, consumers can trace a steak back to a specific cow in a specific farmer's field. This is not necessarily the case with pork, however.

“Traceability works from the farm to the factory gate,” Michael Creed, Fine Gael agriculture and food spokesperson, told RETAIL NEWS. “It's at the factory gate where it breaks down. Ultimately, it's a failure within the Department of Agriculture.”

Did the ‘recall all’ response suggest a problem with the Food Safety Authority's so-called 'precautionary principle', or was it a sign of poor traceability?

“I think it's more to do with traceability,” suggested Tara Buckley. “Let's be honest - consumers, consumer safety,

and health and safety in general, has to be a priority. It's certainly a priority with retailers. But if you use a hammer to crack a nut, you end up creating problems that possibly did not need to be created.”

Buckley contended that it was immediately evident that a huge amount of pork suppliers were far removed from the 10% contaminated. Organic pig farmers, for example, were included under the blanket ban. Yet these producers use certified organic feed - a practice monitored and enforced by Irish certification bodies - and are not permitted to use the type of feed that caused the recent dioxin scare. While the Irish Organic Farmers & Growers Association (IOFGA) is a small body - representing around 1,000 farmers, growers and processors - members were surprised to be included under the ban.

Dominic Leonard, IOFGA spokesperson and organic pig farmer, told RETAIL NEWS, “It's not something that should effect organic farmers but unfortunately we get slapped under the ban, mainly because the FSAI are covering their backs and they don't want to get held up if anything goes wrong.”

In the wake of the initial announce-

December08News

ment, IOFGA members contacted their customers, telling them to put their supplies in the freezers and wait until organic pork had been cleared, since “there was little point in throwing it out”. He added: “The FSAI came out with a knee-jerk reaction: it's politics, what do you expect?

Despite questions over the extent of the recall, retailers appeared to respond quickly and succinctly, with all the major groups (SuperValu, Centra, Superquinn, Tesco, Lidl, Aldi, SPAR and EUROSPAR, Costcutter etc) offering refunds on purchased pork products. Under legislation, consumers are entitled to a refund on production of a receipt or alternative proof of purchase. In the case of own brand goods, most retailers offered a full refund without receipts.

In terms of butchers’ reaction to the recall, Pat Brady was positive. “I just returned a call to Malin in North Donegal and Kilrush in County Clare,” he said. “In one shop, no one was seeking refunds; in the other, it was one or two customers. On the other hand, I was talking to someone in the southeast who had 57 returns. Given the nature of the product, sausages or rashers, you're talking about €200 or €300 worth. There are not many people bringing back loins of pork. We have advised our retailers that it is the law, but it is a retailer's instinct to say, 'I'll replace that for you'. It'll cost a few bob, but it's nothing to scream about.”

The next step was to see how quickly product could return to shelves. “We are concerned about getting the stuff that is in stock - either in our member shops or in other stages of the chain verified as being safe to sell and back in circulation again,” said Brady.

RGDATA Director General Tara Buckley.

Torlach Denihan, Director of Retail Ireland, told RETAIL NEWS that retailer compensation will be a tougher challenge to overcome. “The Irish Pigmeat Association, who represent the people who buy from the farmers - have said they are taking no more pigs until a compensation package has been put in place.

The whole chain - from the famer at one end to the consumer on the other involves a whole series of transactions at different stages. We have urged the Government to put a compensation scheme in place for the entire supply chain.” Ultimately, compensation is likely to arrive in the form of a large Government subsidy.

The weeks and months ahead will be a time for rebuilding. The Irish pigmeat sector has an annual turnover of around €500m, of which around €368m are exports. Bord Bia have pledged to rebuild Irish pork's overseas image, and are developing a tailored consumer information campaign to accompany the return of Irish pork and bacon to retail shelves. The campaign will highlight products produced after December 7, which are unaffected by the events leading up to the recall.

While he found the response to the scare unsatisfactory, Pat Brady doubts it will affect the standing of pork products in the long-term.

“If you think about it, beef consumption is higher now than before BSE,” he said. “It will affect Christmas trade, but in the long term, sausages and rashers are part of our historical staples in Ireland.”

At the time of going to press, Minister for Agriculture, Fisheries and Food, Brendan Smith TD confirmed that all the necessary controls were in place to enable the restoration of supplies of Irish pork and bacon to consumers. All such products carry a special label, developed by An Bord Bia, which confirm that they are perfectly safe to consume and verify them as having had no association with the potentially contaminated feed. The retailing of organic pigmeat products also recommenced, once the producer provided documentary evidence that no contaminated animal feed material was procured and consumed by animals on the particular farm from September 1, 2008, and no pigs which had consumed contaminated material had been introduced onto that particular organic farm.

Beef Given the All Clear IN the wake of the pigmeat recall, beef has been given the all clear. The Food Safety Authority of Ireland (FSAI) have announced that there is no risk to public health from beef. Director of Meat Industry Ireland, Cormac Healy, responded by saying: “The industry's priority now is to communicate this positive message to customers of Irish beef at home and internationally.”

The Chief Veterinary Officer (CVO) of the Department of Agriculture, Fisheries and Food, Paddy Rogan, confirmed to his EU colleagues that Irish beef is safe and can continue to be traded normally on both domestic and export markets, at a meeting of European Union CVOs. Rogan also noted that the Food Safety Authority of Ireland (FSAI) had concluded that there is no requirement for a consumer level recall of Irish beef from the market.

The CVO said that Irish cattle were primarily fed on grass and cattle farmers rely on purchased feed to a much lesser extent than pig farmers. As a result, the risk of contamination was much less, and therefore the results were not a surprise.

Retailers Sourcing Goods in NI RETAILERS are following in the footsteps of consumers and buying their goods north of the border, according to recent reports. Such cross-supplying involves multiples such as Tesco and Dunnes, who may be importing from their UK suppliers, rather than sourcing from Irish distribution channels. The practice is common, Torlach Denihan, Director of Retail Ireland, told RETAIL NEWS, but he called for retailers to pass subsequent discounts on to consumers.

Shopping for Free Parking DUBLIN Chamber of Commerce has called for free parking for shoppers on Saturdays to encourage people to shop in the city centre. The Chamber cited a recent 20% hike in the cost of parking in city centre locations, saying that an abolishment of these fees

by Dublin City Council would assist the economy.

5

December08News

Feeling the Credit Crunch 2009 is set to be one of the most challenging years that retail has seen in a long time, an expert on the global retail industry has told RETAIL NEWS. Even emerging markets are experiencing a fall of growth, explained Ian McGarrigle, Chair of the World Retail Congress Advisory Board, with countries like Russia experiencing the same banking woes affecting the west.

“We truly are seeing a global crisis from a retail perspective and I would imagine Ireland is seeing the same forces as the UK,” he said.

Ireland's retail trade has now begun battening the hatches for the year ahead. Simon Burke, Executive Chairman of Superquinn, recently called his group's sales figures as being amongst the worst seen in a decade. He predicted major job losses over the year ahead, saying he would be “gobsmacked” if there were not significant cutbacks in 2009.

Meanwhile, Tesco Ireland, which has 113 stores and 14 petrol stations, has vowed to cut back on capital spending.

Tesco Chief Executive, Terry Leahy, was recently quoted as saying the multiple is introducing measures to carry it through the recession.

“It’s what I learned managing Tesco through the last recession in the late 1990s and indeed, in the recession before that. Keep going sensibly through the downturn; it puts you in a very strong position in the upturn,” he said.

Indeed, not all is doom and gloom.

The emergent success of the German discounters in Ireland suggests that consumers, drawn to luxury items throughout Ireland's boom years, will now gravitate toward outlets offering cheaper products and better deals.

“That's certainly the trend we can see in the UK and the US: the discounters are really benefiting from this market,” said McGarrigle. “So much so, we've seen them talking publicly, which in my experience is a real rarity. I think it proves that they feel some momentum building up behind them. I think it's a real challenge for mainstream supermarket businesses like Tesco.

“In the UK, [Tesco's] response has been to launch a new range of discount 6

Ian McGarrigle, Chair of the World Retail Congress Advisory Board.

products. It's a real balancing act to try and keep business going with a much lower margin. We're seeing discounters increasing their market share - from a smaller base, but quite dramatically so.

People used to trading up, buying organics, Fair Trade, and higher end products, are definitely putting that to one side, trading down, and going for private label or the discounters. And they like what they're finding. It's not just about chasing the lower price either. In regard to the German discounters, people have

been surprised by the quality too - the media are starting to talk about it, which is a sure sign. That's quite a shock for both the consumers and the rest of the competition.”

This in turn might galvanise the competition: “Private label is certainly back in the frame. We are seeing huge growth rates from private label, since it offers low price and retail brands that consumers trust.” While the year ahead is likely to see pressure across all areas of industry, the dynamic nature of the retail sector is likely to compel its businesses to innovate, he added.

McGarrigle concluded: “It will be really interesting to watch. We are seeing early signs that the retailers who will win are starting to understand where the market is changing, what customers want, and figuring out ways to deliver that. Other retailers will be learning from what the hard discounters are offering and will try to put that together in new formats or ranges. Whilst we're going into a tough year, we're going to see some interesting developments, whether it is consolidation of companies, or ideas marrying up with the new world we're entering. All of us will be thinking and acting differently going forward. It will up to retailers to respond.”

Red Tape Hampering Food Industry?

“TOO many cooks are spoiling the broth,” when it comes to current food regulations, Fine Gael agriculture and food spokesperson Michael Creed TD has told RETAIL NEWS. At present, five separate entities monitor the food industry: the Department of Agriculture, the Department of Health, the Health and Safety Authority, the Food Safety Authority of Ireland and local authorities. But Creed contended that they hamper decision-making and response time.

“We need a rationalisation of agencies reform of the public and civil service,” he said.

“I would like to see this operated under the aegis of the Department of Agriculture and Food, with emphasis on the word ‘food’.”

Fine Gael agriculture and food spokesperson Michael Creed TD.

December08News

Consumers Turn to Low Cost Goods IRISH consumers are increasingly turning to private label goods as the economic slowdown continues to bite, according to the latest Nielsen report.

According to Alan Purcell, Head of Marketing at Nielsen, “There has been a significant decline in the overall level of consumer spending over the last six months. Our research shows how consumers have been responding to the recession in terms of the stores they visit, and the products they are buying. The report clearly shows that there have been some considerable changes in behaviour over the last six months.”

The two German discount stores, Aldi and Lidl, have enjoyed a 40% expansion of trade since January. While in part this reflects the effect of more groups (up 7% over the same time), it is mostly through attracting new shoppers or greater spend per shopper through their existing stores.

The two discount groups now have 160 shops throughout Ireland between them, an almost threefold increase in five years.

The products that consumers seem to be buying in the German discounters are frozen food, bakery products and other general groceries.

“People who had formerly visited occasionally are now using these stores for their weekly shop,” notes Alan Purcell. “There has been virtually no increase in Aldi and Lidl attracting what we call ‘preferrers’ – those who shop there because they prefer these shops over the competition. Clearly the shift in spending patterns is being driven by the necessity of the sharply slowing economy.”

Households are also turning to private labels goods in greater numbers, at the expense of more expensive branded products. Private label goods are on average 33% cheaper than brands, according to Nielsen.

Private label goods are still underdeveloped in many product categories such as confectionery, bakery, alcohol, health & beauty, and could have much more growth to come. The share of private label goods hit an all time high in terms of the share of consumer spend in

September, as consumers tighten their belts.

“This growth in the popularity of private label goods is notable,” notes Alan Purcell. “Ordinarily, the popularity of private label goods is at its peak in January and February as households try and pull back expenditure after the expensive Christmas period. However, what we are seeing this year is a rapid unseasonal increase in the share of private label sales since the start of the summer. I expect that this is a trend that will continue as the recession deepens into next year.”

The growth in private label sales is most concentrated in frozen foods, household products and general groceries.

However, Alan Purcell added, “Looking forward, we could start to see the last bastion of brands such as confectionery, alcohol and health products come under increased pressure as consumers look to find new ways of saving money. Private label is on average 33% cheaper than brands in multiples, a real draw in these price conscious times.”

This is the first report on the impact of the economic recession on Fast Moving Consumer Goods (FMCG) in the Republic of Ireland (ROI). The report draws on many sources, including Nielsen’s Retail Measurement service and Nielsen’s Customised Research arm.

Meanwhile, a TNS mrbi Christmas Shopping Survey revealed that spending on Christmas trees, decorations, clothes, going out and going away will be down on last year.

Damian Loscher, Managing Director, TNS mrbi.

“With the economy shrinking and consumer confidence diving, it can come as no surprise that shoppers have every intention of tightening their Christmas belts this year,” notes Damian Loscher, Managing Director, TNS mrbi.

“2009 will be remembered as the year we went back to basics. Despite the uncertainty, there is unlikely to be too much scrimping on the Christmas dinner, with the majority of shoppers (68%) planning to spend as much this year as last on this focal point of Christmas celebrations. And with almost one in two (48%) expecting to spend less on holidays or going away and three in four (74%) spending at least as much this year on presents for the family, all the signs are that it will be a very traditional Christmas, spent with family, gathered around the (less expensive and more modestly decorated) Christmas tree.”

Spending Plans For Christmas 2008 Compared With Last Year

7

December08News

VAT Changes Hitting Border Retailers Worst AFTER the UK's reduction in VAT by 2.5% to 15%, and the Republic of Ireland's increase to 21.5%, the food and drink industries have been calling for a reassessment of VAT over the year ahead. While most food products are VAT-free, the toll affects alcohol and retail staples like deodorant and condoms. Anecdotal evidence suggests that the VAT charges are also adding to the trend of cross-border shopping. The biggest common denominator in these shopping trips, Torlach Denihan, Director of Retail Ireland, told RETAIL NEWS, is alcohol, which experiences VAT and excise burdens in the Republic.

“It's particularly severe on border towns - the further back you move from the border, the less of an issue it becomes,” he said. “The border retailers would have been facing a downtown anyway because of the economy: this is an extra cross they have to bear. It's compounded by the currency problem – we’re now at the point where the sterling/euro rate is around £1 to €1.10, which is remarkable.”

Food and Drink Industry Ireland (FDII) Director Paul Kelly said: “The 6.5% differential in VAT rates will increase the enormous impact of crossborder shopping on Irish businesses, jobs and the exchequer. As a result, the VAT increase, along with other measures in the budget that add to business costs, have exacerbated the situation.

“Sterling has weakened by 10% over the last six weeks and by 28% over the last 15 months. This is having a dra-

Paul Kelly, Director, Food and Drink Industry Ireland.

8

Torlach Denihan, Director of Retail Ireland.

matic effect on the industry’s competitiveness in our most important export market, which accounts for 42% (€3.62bn) of Irish food and drink exports.”

Kelly called on the Government to control Irish business costs such as energy, waste and transport as “the only possible response”.

Tara Buckley, RGDATA Director General, said that the Government must make proactive decisions that assist small businesses in 2009, addressing the issue of “unnecessary” regulation.

“Family-owned businesses are the backbone of the economy, particularly when times get tough. A lot of things have been done over the last number of years that are making life extremely difficult for family-owned businesses. We will be seeking Government action to ensure they allow people to run and operate their businesses in as efficient a manner as possible and make sure they don't overburden them with regulations,” she noted.

“The Government has to start thinking outside the box and stop feeling that retailers and consumers are an easy target - they need to be more creative in what they come up with. What they do and decide can stimulate the economy or make people more nervous and change their spending habits. When times are tough, we need a Government that can step up to the mark and make proper decisions that will stimulate this economy,” she said.

Beamish & Crawford Brewery to Close HEINEKEN Ireland has announced that it is to close its Beamish & Crawford brewery in Cork in March 2009, following an intensive integration review process.

The decision to transfer production operations to one site at Heineken Ireland’s Leitrim Street brewery in Cork follows a review of both individual brewing operations, with particular focus on capacity, expansion capability and future investment. This, combined with the high costs of operating two breweries in the city, difficulties associated with expansion at the Beamish & Crawford facility and excess brewing capacity at Heineken Ireland, makes the future of the Beamish & Crawford plant unsustainable.

As a result of the integration of administrative and commercial activities, up to 40 employees from Beamish & Crawford will transfer to Heineken Ireland and it is anticipated that approximately 120 personnel will be made redundant.

Planning Ahead THE credit crunch does not appear to have hit home on Dublin's Grafton Street, which recently surged past London and Tokyo to become the fifth most expensive shopping location in the world. Rent on the city's hallowed street now costs €5,621 per square metre of space a year: an increase of 5.3% on 2007.

West of the country, in Ballina, County Mayo, a local supermarket also has high hopes for the future.

The family-owned Moloney’s SuperValu store, in Bunree, has increased its size by 50% to 9,000 square feet of retail space.

Meanwhile, Treasury Holdings has been given the go-ahead to develop its Sligo Town Centre scheme by An Bord Pleanala. The €80m scheme, which will provide a new focus for retailing in Sligo, will be anchored by Dunnes Stores, Tesco and Penney’s and will comprise 30 shops, 1,000 car parking spaces, 27 apartments and 30,000 square feet of office space.

December08News

Ireland's First Motorway Service Area Officially Opens

IRELAND’S first motorway service area was officially opened recently on the M1 motorway (Belfast / Dublin) at Junction 5, the exit for Balbriggan South. The Applegreen service area has been developed by Petrogas, Ireland's largest independent forecourt retailer. The motorway service area will service up to 55,000 motorists who pass this interchange each day. It will also cater for the local population of Fingal, which now makes up 5.6% of the national population.

The low fuel prices service station will be located on the 165 acre M1 Business Park site, which is being developed by Treasury Holdings, the leading international property company.

Speaking at the launch, Joe Barrett, Retail Director,

Applegreen said, “The station will offer a spacious forecourt with 12 pump islands, two state-of-the-art carwash facilities, extensive customer car parking, a coffee shop with a large indoor seating area and free Wi-Fi. It will also have an evolving menu of hot and cold food, freshly prepared at the in-store deli. There will also be a 'night-in' area that offers a large selection of wine, beer, snacks and pizza. In addition to Applegreen's promise of 'low fuel prices, always', customers can save a further 5 cent on petrol and diesel when they buy a car-wash.

“We also have a separate truck and coach forecourt which accepts all major fuel cards, and a designated drivers' rest room in the main building.”

ADM Londis Appoint Commercial Director ADM Londis plc have appointed Peter Foley as Commercial Director for the Group. In this newly created senior role, Foley takes responsibility for the management of all commercial operations within the Group as a whole and will provide leadership and expertise to the Sales, Purchasing and Marketing functions.

Prior to joining ADM Londis, Foley has gained extensive industry experience with both the Musgrave Group and Mangan’s, with particular focus on wholesale business development.

“Peter’s appointment is a significant step forward for ADM Londis,” notes Stephen O’Riordan, CEO, ADM Londis plc. “We recognised the need to adapt and develop our existing structure in order to ensure the Londis Group continues its forward momentum within the grocery retail market.

The consolidation of the commercial functions will ensure that the Group is well positioned to meet the needs of our

consumers and Group retailers” The Group also recently announced that former Joint Chief Executive Paddy McGarry has accepted a position as a non-executive director on the Board, and will now engage in a four year consultancy contract with the Group, where he will focus on interacting with existing and prospective Londis retailers. Stephen O’Riordan will continue in his role as Chief Executive of ADM Londis plc.

Peter Foley, Commercial Director, ADM Londis plc.

“We are delighted to announce Paddy’s new role with ADM Londis plc. With 37 years’ experience and expertise within the Group, Paddy plays a vital consultative role in the continued success and development of the Group,” noted Stephen O’Riordan, CEO. “In his consultative new role, ADM Londis plc will continue to benefit from Paddy’s well established relationships with Londis retailers and Irish retailers in general, a strength that is becoming increasingly important in the current challenging market environment.”

The changes to the senior management structure of the Group are part of a concerted effort by ADM Londis plc to accelerate the strategic growth of the Group, following the impressive results of the past number of years and also ensure that Londis retailers are best placed to meet the needs of Irish consumers.

9

December08News

Food Industry Facing New Challenges THE Irish food and drink industry remains best positioned to anticipate and respond to the rapidly changing needs of Irish consumers, even while the domestic market has become a highly challenging one for suppliers during 2008, according to Aidan Cotter, Chief Executive of Bord Bia. The industry’s success can best be secured through its capacity to exploit its strong consumer connections and the infinity of Irish consumers towards quality brands.

Speaking at Bord Bia’s eighth annual Food and Drinks Industry Day, he said, “Competition between mainstream and discount retailers, a weak Sterling, high cost base and the credit crunch are combining with a significant shift in shopping behaviour to create new challenges for Irish food and drink companies. The industry, whose exports last year amounted to over €8.6 billion, is facing similar challenges overseas, particularly in the UK market. Competing successfully in this very challenging domestic market environment is, therefore, very much a critical precondition for the success of Irish food and drink manufacturers overseas.”

Bord Bia’s Food and Drinks Industry Day attracted over 140 delegates, representing 90 Irish food and drink companies. Delegates were also reminded that while overcoming the immediate competitive challenges is a major priority, the industry must also now begin to address the key issue of sustainability to meet both current and emerging market needs.

The comment came as Bord Bia launched a new report on sustainability and its strategic implications for the Irish Food and Drinks Industry.

The report highlights the challenges and opportunities for the sector and outlines Bord Bia’s role in guiding the industry’s adoption of susAidan Cotter, Chief Executive of Bord Bia pictured (right) tainable strategies with keynote speaker Dr. Chris Brown, Head of Ethical & and processes.

Sustainable Sourcing, Asda, at Bord Bia's eighth annual Food According to and Drinks Industry Day. Aidan Cotter, “Sustainability is By 2030, the planet will need to prothe future source of competitive advanduce 50% more food, with less land, water tage and a critical driver of business and energy, while also reducing greengrowth. It is increasingly forming a core house gas emissions (Source: United component of corporate strategy for leadNations 2008). Sustainability involves proing retailers and manufacturers and ducing, using and disposing of products in there is a significant opportunity for Irish a way that minimises their impact on the companies to proactively address this environment and helps to ensure the needs issue to meet the needs of the retailers. of the future can be met. Environmental Our research has shown that by embracconcern, social responsibility and economing sustainability, companies can achieve ic viability are commonly identified as its significant cost savings, protect their main pillars. Sustainability is becoming brand image, and in some cases, enhance increasingly important to retailers and it. Bord Bia will assist the industry to large manufacturers as they respond to develop and provide innovative sustainconsumer demand for sustainable and able solutions that can contribute to traceable products. retailer strategies.”

ABFI Goes Online THE Alcohol Beverage Federation of Ireland (ABFI) has launched its new website, abfi.ie, offering the organisation’s members, the media, and other interested groups and individuals a wealth of information and key statistics about the industry.

In addition, each of the four separate sector associations that are part of ABFI – the Irish Brewers Association, the Irish Cider Association, the Irish Spirits Association, and the Irish Wine Association – have their own dedicated sections.

10

Speaking about the site, ABFI Director Rosemary Garth commented, “Abfi.ie is a vital resource for all our members and anyone wishing to learn more about the drinks industry in Ireland. The site has been developed over the past 12 months and has been launched in time for ABFI’s first anniversary as a representative organisation.

“The website alerts visitors to the industry initiatives in which ABFI members participate and has a section that debunks many of the myths that exist about alcohol consumption

in this country. It also features ABFI’s press releases, policy papers and submissions to Government.”

5=:23< 0/:/<132 /@=;/B71

This communication is for the information of tobacco traders only.

SMOKERS DIE YOUNGER Irish Government Warning

December08Industry News

Bord Bia Brand Forum Annual Dinner PICTURED are (l-r): Dan Browne, Chairman of Bord Bia and Managing Director of Dawn Meats; keynote speaker Denis O’Brien and John Noonan, Sales and Marketing Director, Flahavan’s and Chairman of Bord Bia’s Brand Forum. Denis O’Brien was the keynote speaker at the Brand Forum’s Annual Dinner, which took place at the Westbury Hotel, Dublin, recently. Bord Bia’s Brand Forum meets six times a year and is made up of over 100 food, drink and horticulture companies. The Forum has proved to be a highly successful learning and networking opportunity for companies addressing issues specific to brand marketing in the food and drink arena.

Christmas Waste Battery Recycling Appeal JOHN Gormley, TD, Minister for the Environment, Heritage and Local Government, has launched the European Recycling Platform’s (ERP) Christmas appeal campaign, aimed at encouraging people to recycle their used batteries as we enter into the season with the highest sales of batteries and battery operated devices. The equivalent in weight of 80m AA batteries are sold in Ireland every year and it is estimated that a massive one third of all sales occur over the Christmas period alone.

Pictured at the campaign launch are Santa Claus; Minister Gormley; Little Miss Positive (10-year-old Emma Reid) and Martin Tobin, General Manager, European Recycling Platform (ERP).

Dundrum Wins for Family Friendliness DUNDRUM Town Centre has been voted Ireland’s Most Family Friendly Retailer/Shopping Centre 2008 at the Maternity & Infant Awards. This is the third consecutive year that Dundrum Town Centre has achieved the accolade, which recognises the sterling standards set by the Centre for parents and families in terms of services, facilities and entertainment, as well as through the dedicated children’s retail offering.

This award is voted for by shoppers throughout the country. Pictured is Jayne O’Keeffe, Head of Marketing, Dundrum Town Centre, accepting the Maternity and Infant Award for Most Family Friendly Retailer/Shopping Centre of the Year 2008, from Minister for Health, Mary Harney TD.

Kepak Secures €1m Deal with Tesco

Diageo Leads the Way in Cocktail Culture

KEPAK Group will be supplying Tesco-branded “convenience food” products to 284 Tesco stores in the UK. It is estimated that the deal is worth €1m in the first year, with the possibility of the range extending to more stores throughout the UK in the coming years. The announcement is the culmination of many months of development work in conjunction with Tesco Ireland, following the successful introduction of similar products to stores in Ireland.

John Horgan, Managing Director, Kepak Group, said: “We are delighted to have secured this business on the strength of our trading success with Tesco Ireland. In the current economic climate, this is a very welcome boost to all our staff at Kepak Cork and to Kepak Group. This relationship proves that with the right product and the right retail partner, it is possible to continue to expand into new markets and sectors.”

RESERVE Brands Group, the luxury drinks division of Diageo Plc, showcased their luxury range of exceptional spirits to key trade partners and some of the country’s top mixologists at the ‘Inspired Luxury’ event at the Guinness Storehouse recently. Along with the Reserve portfolio of brands, which includes Ketel One, Tanqueray and Tanqueray No. Ten gin, Cîroc vodka, Johnnie Walker Green Label and Johnnie Walker Blue Label whiskies, Diageo Ireland introduced the ‘Inspired Luxury’ programme, developed to share knowledge with key trade globally, allowing them to maximise their luxury drinks offering in innovative ways while maintaining consistency of service.

Leighton Wall, Marketing Manager, and Dawn Allison, both from Diageo Reserve Brands Group, are pictured with Spike Marchant from The Gorgeous Group, the trade experts who hosted the event.

12

STOCK UP WITH CHRISTMAS FAVOURITES

WISH YOUR CUSTOMERS A MERRY CHRISTMAS BY STOCKING UP ON THEIR FAVOURITE FESTIVE SEASON BRAND, MCCAIN. TASTY, QUICK AND CONVENIENT, YOUR CUSTOMERS WILL ENJOY THEM AT MEALS, PARTIES AND GATHERINGS AND YOU CAN ENJOY MANY HAPPY RETURNS.

LOOK OUT FOR OUR ADVERTISING CAMPAIGN IN PRESS, INSTORE ACTIVITY AND MAGAZINES.

December08Industry News

Guinness Welcomes All Blacks GUINNESS, home of the one internationally famous all black, welcomed the All Blacks squad to the Guinness Storehouse, ahead of the their highly anticipated test matches against Ireland at Croke Park and Munster at Thomond Park.

Celebrating this special evening with the All Blacks were John Kennedy, Managing Director, Diageo Ireland and John Lyons, President of the IRFU. Many of the players enjoyed a pint of Guinness while taking in the spectacular views of Dublin city from the Gravity Bar. Pictured are All Blacks Hikawera Elliot, Dan Carter and Piri Weepu at the Guinness Storehouse.

New CEO at Torex TOREX Retail Holdings, a leading global provider of innovative, integrated technology solutions to the extended retail marketplace, have announced the appointment of Steve Rowley as CEO, effective from January 2, 2009. The current CEO and Chairman, Mike Greenough, will move to Executive Chairman of the Board.

Superquinn’s Christmas Marketing Programme SUPERQUINN has appointed The Continuity Company for a free Christmas retail marketing programme. Launched on December 1 across all 24 Superquinn stores, the nine-week promotion represents the first time Superquinn has used a free gift collector programme. The promotion offers all Reward Card holders four pieces of the stylish Piemont cutlery range from Villeroy & Boch for free in exchange for 550 points or just 150 points and €7.99. The four piece set has a retail value of €50.

James Wilson, Trading Director for Superquinn, notes, “This is also a great incentive for new customers to sign up to the Superquinn Reward Card, which has been running since the early ‘90s. The tough retail trading climate looks set to continue in 2009, so driving long term loyalty in store is a key priority for us. This promotion, along with other great offers and competitive value promotions throughout the year, will play an important role in helping to achieve this.”

Cully & Sully Move Pie Production

Appointment at safefood

CULLY & Sully have moved their pie production from France to County Crest in Ireland. Pictured at the announcement are Kieran Lynch, Gerard Keane and Gabriel Hoey.

ANDREW Castles has been appointed Events Management Executive with safefood. Andrew will have overall responsibility for event management, direct marketing and stakeholder development, helping to facilitate the promotion and understanding of safefood’s core food safety and nutrition messages among consumers on the island of Ireland.

Click Magazine Launches CLICK Magazine, which launched on December 3, is Ireland’s first movies, games and gadgets magazine. The glossy, full colour Click offers 130 pages packed with news, previews, reviews, features and competitions, for a cover price of €4.95. Published in an A4 format, six times annually, 20,000 copies of Click are distributed via EM News, Newspread and independent channels.

14

December08Karen

Meenan’s Top Tips

How Much Did You Learn?

Karen Meenan reflects back over her articles to see just what you learned.

Answer the 11 quiz questions below to see if you’re on course to maximise your net profit.

2008

Major changes to the way newspapers and magazines are distributed in Ireland allow you to keep a closer eye on your newsagency deliveries.

progress and full roll-out will be in the last week of December to coincide with a slower than average week’s trading in most newsagency stores.

Energy costs soared this year, with many analysts stating that costs have actually increased by 25% in the last 12 months. No longer does the retailer have a choice between day and night rate electricity: there are now seven different tariffs to choose from.

Staff costs were a big concern this year also, when turnover dips, so too must overheads, so many retailers this year were faced with downsizing the roster and many staff members faced with redundancy.

Some new stores opened, but many closed. It seems that to remain competitive in this sector, costs are at

the forefront of everybody’s mind. And so, here’s a refresher back to recent articles published in RETAIL NEWS over the last year or so and some contact numbers to allow you to focus more time on reducing costs for 2009.

was a very difficult year for the retail trade. Bad weather in July and August was accompanied by a 1) All Change In 2008 significant shift in retail buying pat(Jan/Feb 2008) terns. As people started to tighten their Eason and Menzies joined forces in belts, traditional high profit categories 2008 and are now known as EM News such as food-to-go and coffee became Distribution. The website can provide early casualties. Who could have imagvery useful information regarding ined that summer 2008 would be the planograms and account information summer of “€urosaver” offers with the for your store. You can access this introduction of €1 sandwiches adverinformation on which website? tised by a former Taoiseach available a) www.emnewsdistribution.com in your local c-store? b) www.eason.com January 28 saw the merger of c) www.easonmenzies.ie Eason and Menzies distribution in the Dublin region and August 2) Pester Power 18 witnessed the merger of Eason (March 2008) and News Bros. in the Cork The credit crunch has affected region. The former gave much sales in the newsagency over the difficulty to retailers who were last six months, with one notable confused by the daily invoicing, exception – children’s products. while the latter, with cluster The most successful children’s meetings and retailer training, trading cards/sticker collection was a much smoother transition. launched during 2008 was: 2009 will see more changes in a) Match Attax the newsagency department as b) Slam Attax Match Attax has proved a massive success with boys, c) High School Musical 3 Newspread are changing their and retailers should ensure they have plenty of computer system to that of WH stock on display for the lifetime of the collection.

Smith. Testing is already in 15

December08Karen

Meenan’s Top Tips

5) Computing And Gaming Uncovered (June 2008)

Argosy Libraries supply a spinner stand free of charge to display bestselling paperbacks.

3) How To Increase Your Net Profit (April 2008) The easiest way to increase your net profit in a retail outlet when turnover is static or falling is to: 1) reduce your stock holding 2) reduce your gross margin 3) reduce your wage costs

4) What’s New in the Newsagency (May 2008) Best-selling books can add extra profit to your business. Argosy Libraries offer a full sale-or-return range of best-sellers to any retail outlet with a newsagency department. See www.argosybooks.ie or contact Ed Walsh, Argosy Libraries, Unit 12, North Park, North Road, Finglas, Dublin 11. Tel: 01 8239500.

Typical gross margins for selling paperbacks are: (a) 10% (b) 15% (c) 20% (d) 25% (e) 30%

16

UK magazine distributors Seymour have undertaken several pieces of research into consumer attitudes and behaviour when shopping the computing and gaming sector. Which of the following statements are true? (a) 60% of shoppers plan their purchase before arriving at store; (b) Over 50% of shoppers will go to another store to buy their preferred magazine if it’s unavailable; (c) Readers have a wide repertoire of shops: they’ll buy their magazine from 3-4 different outlets; (d) Over 1 in 4 buy one particular magazine at least every 3 or 4 months; (e) Gaming readers buy over 11 gaming magazines per year on average; (f) Computing readers buy 10 computing magazines per year on average; (g) One in three buyers will buy more than one magazine at a time, provided the right titles are available to them; (h) Typically, the market is at its most buoyant in autumn/winter, particularly October to December.

6) Real Life, TV and Soaps (July/August 2008)

packet of Mutones you sell. It is estimated that 41% of all 10-15 year olds will see the ad at least once during launch phase, which began on November 27. Which of the following will support TV advertising for Mutones? (a) Nickelodeon (b) MTV (c) SKY 1 (d) Sky Sports (e) RTE (f) TV3 (g) TG4

8) Reduce Energy Costs (May 2007) This article was written over a year ago but tough as it was back then, energy costs have soared again, up 25% in the last 12 months. Place a tick on the statements below which are effective ways of reducing your energy bill for 2009: (a) Install timers on all coolers (mineral, water, beer and wine coolers) so that you don’t have chilled products for sale when the shop is closed; (b) Get an energy audit from an expert such as Susan Cromey, Energy Administration Services Ltd (01 4990792 Mob 087 2218714 www.energyadmin.net) to get a practiced eye to look at your rates and tariffs;

Women’s interests account for almost half of all magazine sales (45%). The next biggest sub-category is TV Listings at 13%. For maximum sales, best practise is to stock all three titles, but which is the best selling magazine in this category: (a) RTE Guide (b) TV Now (c) What’s On TV

7) Sell Ringtones For Profit – Meet The Mutones (September 2008) Mutones are about to hit your shops!

This is the newest school yard craze which will be heavily supported by a major TV campaign showing the animated characters and ringtones.

You will earn 25% of €2 for every

The RTE Guide is the best selling weekly title in Irish newsagents and has been for over four decades.

December08Karen

Meenan’s Top Tips

chip pellets – total weekly outlay €20 c) €8 for energy and €32 for wood chip pellets – total weekly outlay €40 d) €10 for energy and €40 for wood chip pellets – total weekly outlay €50.

10) Make Profit From Hobbies (October 2008) Magazines are seasonal in nature. All too often, retailers leave the same Mutones, the newest school yard craze, is being display on the magazine supported by a major TV campaign showing the stand year-round. Match animated characters and ringtones. the sub-categories to the best selling seasons: (c) Dust off air conditioning units at least once per month to ensure Crafts Summer that you are not wasting energy Food Spring costs in a clogged or blocked unit; Slimming Autumn (d) Install a timer on the hot water immersion heater so that deli Comics Winter personnel do not leave this switched on all day.

Simply Knitting, hugely popular with craft aficionados.

11) Stop Losing Money (April 2007) What is the most common amount of money lost due to incorrect newsagency returns each year?

9) Watch Your Waste (October 2007) This was another article from 2007 but lots of interest lately in composting to save waste charges has tempted me to include this information again. The Jora 5100 or ‘Digester’ can combine all your deli waste with wood chip pellets and produce an organic feed which can be then sold to local farmers or garden centres. It takes six weeks to turn deli waste into organic feed, but what are the weekly running costs of the digester? a) €2 for energy and €8 for wood chip pellets – total weekly outlay €10 b) €4 for energy and €16 for wood

a)

€1,000

b)

€2,000

c)

€3,000

d)

€5,000

ANSWERS 1.

(a) www.emnewsdistribution.com

2.

(a) Match Attax (by a mile!)

3.

(c) reduce your wage costs – conduct a wage/sales analysis to see how.

PC Live!, the Irish produced computing magazine, has been around for 14 years.

4.

(e) 30%

5.

All of the statements are true.

6.

(a) RTE Guide (Ireland’s bestselling magazine for over 40 years).

About the Author RETAIL consultant Karen Meenan runs her own consultancy business, Results Training & Marketing, focusing on net profit and how to maximise profit for the retailer. For more information, contact Karen on 086 6027711 or by email kmeenan@eircom.net.

7.

All of them, so stock up.

8.

Each step is good practice, although (b) – get energy audit – is the best single step.

9.

(a) €2 for energy and €8 for wood chip pellets – total weekly outlay €10.

10. (Crafts = Autumn); (Food = Results Training & Marketing When Results Really Matter

Winter); (Slimming = Spring); (Comics = Summer) 11. (d) €5,000 17

RN December08The Year in Review ●

2008: The Year in Retailing MARCH

JANUARY JLC wage rates in the grocery sector increased, with effect from January 25, 2008.

Topaz announces that it’s to conduct a €50m investment programme, replacing both Shell and Statoil with the new Topaz brand.

The investment will affect 350 service stations, 250 company trucks and 100 convenience stores, replacing the Fareplay brand.

Musgrave Group announces that it achieved its goal in selling all 125 Budgens outlets in the UK to independent retailers, who will continue to work with the Musgrave Group.

Irish food and drink exports grew by over €400m in 2007, to €8.6 billion.

The then Minister for Justice, Brian Lenihan TD, announces the establishment of a new advisory group to focus attention on offsales, in an attempt to tackle the public order aspects of alcohol abuse.

BIM reveals that total sales for Irish seafood in 2007 were valued at €803m, an increase of 6% over 2006.

According to Diageo Ireland, off-trade sales overtook pub sales in 2007, accounting for 52% of all alcohol sold, marking a 22% rise since 2001.

Reasons have been attributed to the growth in wine culture, the increase in off licence openings, and the introduction of the smoking ban.

Vincent Jennings, CEO of the CSNA.

The European Commission agrees on a proposal to make food labels clearer and more relevant to the needs of EU consumers. The new rules mean that key nutritional information will have to be shown clearly on the front of the package.

SuperValu launch Kids In Action 2008, a multi-layered programme designed to get Irish primary school children more involved in sports and active play.

BRUARY FEBRUARY The joint venture between Eason and Scottish logistics firm John Menzies is broadly welcomed by the trade, with Vincent Jennings, CEO of the Convenience Stores & Newsagents Association expressing optimism that the newly formed EM News Distribition will resolve newsagent woes.

Jacob Fruitfield Food Group announces its intention to cease production at its biscuit factory in Belgard Road, Tallaght, by early 2009.

18

Mangan’s Wholesale open a new 40,000 square feet cash & carry in the Burlington Business Park, Tullamore, Co. Offaly. The €5m investment will provide the widest range of food products for wholesale customers in the food retail and foodservice sectors across the Midlands, as well as delivering 20 jobs for the region.

Sir Terry Leahy, Group CEO of Tesco plc is named as the 2008 recipient of the Sean Lemass Gold Medal for Business Leadership by the TrinityIMI Graduate School of Management.

Tara Buckley, RGDATA Director General.

RGDATA reacts with dismay at EM News & Distribution’s new Terms & Conditions regarding the delivery of newspapers and magazines to retail outlets across Ireland, describing them as “one-sided and draconian”. Tara Buckley, RGDATA Director General, notes that, “There is a chink of hope amongst retailers that this joint venture would be a new beginning for retailers and news distributors.

Unfortunately, these terms and conditions do not fill retailers with any hope.”

The National Consumer Agency (NCA) publishes a comprehensive survey into grocery prices, comparing branded, non-branded, and ownbrand goods in a wide range of stores and over a wide geographical spread.

Outlets surveyed included: Dunnes

RN December08The Year in Review ●

Centra announces a record sales performance for 2007 in the Republic of Ireland, with sales up by 15.1% to €1.383bn. It also announced that €67m was invested by Centra’s independent retail partners in 2007, leading to the creation of 1,200 jobs.

Then Minister for Enterprise, Trade & Employment, Micheál Martin TD launches a major Pictured are Bernard Lynch, Chairman, new initiative for employees Centra Retailer Council (right) with DJ Allen, of the retail sector, which is Sales Director, Centra, and Donal Horgan, provided by FÁS is in the Managing Director, Centra, at the Centra form of two new training National Conference in The Malton Hotel, Killarney. programmes. FÁS consulted widely before it brought these new products to the market Stores, Superquinn, Tesco, and has pilot tested both proSuperValu, SPAR, Centra, grammes with Tesco Ireland in three EuroSPAR, Aldi and Lidl, independof its major stores in Dublin. ent butchers and independent fruit and vegetable shops. NCA Chief Homestead present a cheque for Executive Ann Fitzgerald calls for €250,000 to The Children’s Medical consumers to drive competition by & Research Foundation, Our Lady’s splitting their weekly shopping Children’s Hospital, Crumlin, as around various outlets. part of Homestead’s ‘Home from Home’ campaign pledge to raising a Musgrave Group grows its market minimum of €500,000 for the share in Northern Ireland to 16%.

Hospital.

Youth Work Ireland, the co-ordinating MEAS, the alcohol social responsibiliagency for local independent youth ty organisation, hold their fifth annuservices across the country, calls for al conference on the theme of high frequency “teenage repellent” ‘Working Together To Reduce Alcohol alarms to be banned from outside Related Harm’. retail outlets.

The CSNA submits a complaint to the Competition Authority in regard to reducing commissions paid to retailers by top-up providers, pinpointing a reduction in commissions dating back to September 2002.

Beamish & Crawford’s annual results for 2007 show strong growth.

Turnover in 2007 for Beamish & Crawford (Republic of Ireland and Northern Ireland) was €128.69m, 8% ahead of 2006.

The Irish Farmers Association begins taking out newspaper adverts “naming and shaming” supermarkets that it claims use food as a loss leader.

Enterprise Ireland and Musgrave Group launch the ‘First Sale’ Programme, to assist Irish food companies to make an impact in the retail sector, enabling early stage food companies to understand the requirements of large food retailers, thereby enabling them to develop sustainable businesses.

Rumours begin to circulate that Heineken will take over Beamish & Crawford, as part of its €10.5 billion purchase of Scottish & Newcastle, which owns the Cork based drinks company.

Musgrave Retail Partners present a cheque for €360,000 to Our Lady's

Hospital for Sick Children and the Irish Cancer Society, following the sixth annual Musgrave Triathlon.

APRIL The Competition Authority releases a report into grocery prices, which finds that price trends for Groceries Order items and Non Order items appear to behave differently prior to the removal of the Order. Specifically, when grocery prices were rising, the price of Groceries Order items tended to rise more rapidly than Non Groceries Order items and when the prices of grocery items were falling, the prices of Non Groceries Order items tended to fall more rapidly.

According to Competition Authority Chairperson, Bill Prasifka, the study “revealed a number of bottlenecks in the grocery sector which will require continued monitoring by the Competition Authority and other consumer groups”.

BWG Aquires Mangan’s In April BWG Group agrees a deal to acquire the business of Mangan’s Wholesale for approximately €40m.

According to Leo Crawford, Group Chief Executive, BWG, the acquisition “represents a natural extension to BWG’s Irish operation”. The deal sees BWG take over the business of Mangan’s Wholesale, including all Mace stores in the west of Ireland and all Vivo stores country-wide, as well as the Mangan’s cash and carry network.

Gabriel Mangan, Chairman of Mangan’s Wholesale, said that he and his fellow shareholders, his brothers Terence and Leo Mangan, had decided to complete the deal because “after more than 75 years operating as a wholesale food supplier to the independent retail and foodservice sectors, we believe that now is the time to align the business so that it will have greater scale and resources.”

19

RN December08The Year in Review ● year. This announcement “marks a significant step for ADM Londis,” said Stephen O’Riordan, Chief Executive, ADM Londis plc.

The Efficient Consumer Response (ECR) Ireland Annual Conference takes place in Dublin, with the theme, ‘Working Together – Sharing Best Practice’.

Presentations include the ECR Ireland Holistic Pictured at the announcement between ADM Shopper Research, a first in Londis and Texoil were Tom Kirrane, Managing collaborative consumer Director, Texoil and Stephen O'Riordan, Chief Executive, ADM Londis plc. behaviour research in Ireland, and a major national collaborative audit of product availability and planogram compliance.

Musgrave Group announce sales growth of 6% to €4.9 billion in 2007, Keelings Salads are named as the with profits up 16%. overall winner in the Bord Bia National Horticultural Food Quality A new Office of Tobacco Control report Awards for 2007. reveals that 48% of tobacco retailers are willing to sell cigarettes to minors, SuperValu announce a record sales news that the CSNA calls the “final performance of €2.2 billion for 2007, wake-up call for every single retailer 10% up on 2006. Nine new stores to get their house in order”. opened during 2007 at an investment of €17.6m, with a further €57.8m Glanbia reports a 34% rise of pre-tax invested in the revamp of 36 existing profits in 2007, up to €99.5m, in its stores, and the creation of over 1,300 international food ingredients and new jobs created in 2007 across the nutritionals business. Irish operations SuperValu network. are reported to account for 34% of group sales, worth €803m.

John Noonan, Sales and Marketing Director, E. Flahavan & Sons Limited, Green Isle Foods Ltd, part of Northern is appointed Chairman of the Bord Foods plc, is to invest €5.2m in new Bia Brand Forum, which assists Irish job creation, training, and manageFood and Drink companies build ment development. This investment, stronger businesses through branding with support from Enterprise Ireland, will lead to the creation of 70 new jobs over the next three years at its frozen pastry business, based in Portunmna Co. Galway.

ADM Londis are strengthening their presence in the forecourt sector, after a deal with Texoil is to lead to 20 new sites by the end of 2009. The deal is reported to bring additional retail turnover in the region of €50m to ADM Londis, creating 300 new jobs in the process. As part of the agreement, new Londis branded concept stores will roll out across 10 existing forecourt locations in Munster and Connaught this 20

Pictured at the official opening of the €7m Dublin Port Company Service Station on Promenade Road in Dublin Port are Minister for Transport, Noel Dempsey TD; Enda Connellan, Chief Executive, Dublin Port Company; and Danny Murray, CEO, Topaz.

by accessing its network of knowledge, expertise and advice.

Rumours begin that Kerry Group is to purchase Breeo Foods.

Superquinn are announced as one of the winners of the 2008 Irish Food Writers Guild Food Awards, for their SQ Superior Quality Irish rib eye dryaged Hereford beef.

Gala kicks off its biggest-ever year of marketing activity with a high-profile TV sponsorship on TV3, the newly revamped National Event Guide which runs daily from April 5, 2008, for one year. The TV3-produced National Event Guide in association with Gala will air approximately 25 times weekly.

Walkers Sensations signs up to be the title sponsor of the TV Now Awards, which will now be officially known as the Walkers Sensations TV Now Awards, in a three-year deal.

Topaz officially open their €7m Dublin Port Company Service Station, which is four times larger than a typical Irish service station.

MAY Following the findings of the new Alcohol Advisory Group, the Government announces new proposals for tackling binge drinking. Amongst proposals in the draft legislation of the Intoxicating Liquor/Public Order Bill 2008 is the suggestion that off-sales should be only granted between 10:30am and 10:00pm, and the recommendation that “alcohol products must be displayed and sold in supermarkets, convenience stores, etc. in a specified area which is structurally separated from the rest of the premises (where separation is not possible, alcohol products must be displayed and sold from behind a counter)”.

Tesco announces a growth of 9.8% in its business in the financial year ending February 2008. This marks a sales increase of €267.6m to a total of €2995.1m for the year, as well as the creation of 800 jobs during the year.

RN December08The Year in Review ● Dunnes Stores wins a case taken against the Ilac Shopping Centre in Dublin, following the decision by the shopping centre’s owners to refuse permission for a “high quality food hall and wine store” at the centre.

Irish Distillers Pernod Ricard announce a 13.8% rise in global volumes of Jameson sold in 2007, representing sales of 2.5m cases and putting Jameson into the Top 40 worldwide premium spirit brands.

Mars purchases Wrigley in a deal estimated at around $23bn in value.

Ryan’s SuperValu, Grange, Co. Cork is named SuperValu Store of the Year for 2008 at the Group’s annual conference.

The Food Safety Authority of Ireland publishes a new guidance leaflet for the food industry to provide clarity on the legal requirements for the labelling of food. The guidance leaflet is available in English, as well as nine other languages, including Arabic, Latvian, Lithuanian, Polish, Russian, Simplified Chinese, Traditional Chinese, Ukrainian and Urdu, reflecting the multicultural nature of the Irish food industry today.

The then Minister for Agriculture, Fisheries and Food, Mary Coughlan TD announces the reconstitution of the Consumer Liaison Panel. The Panel will meet at least every three months

to raise issues of consumer concern directly with the Department and to be briefed on current Department activities. The panel is made up of: Mark Cagney, Chairman; Kenny Jacobs, Tesco; Valerie Rice, Superquinn; Tara Buckley, RGDATA Director General; Gerry McCormack, SIPTU; Richard Donoghue, Consumers' Association of Ireland; Carmel Dawson, Irish Countrywomen’s Association; Andy Irving, Department of Agriculture, Fisheries and Food; and five Minister’s nominees: Maeve Dineen, John McGrath, Maírín Uí Chomáin, Jackie Spillane and Gary Brown.

Chairman of SPAR Ireland, Leo Crawford, and Managing Director, Peter Kealy, announce record SPAR’s record results for 2007 at EUROSPAR Barrow Street, Dublin.

ADM Londis plc reveals its annual results for the year ended December 31, 2007. Profit before tax increased by 20% to €6.1m, on a wholesale turnover of €371m (up 4.5%). ADM Londis also announced that its shares are now valued at €85.04, an increase of 7% on the April 2007 valuation.

The Group added 35 new stores in 2007 and now represents a network of over 370 stores with a combined retail turnover of €761m.

year ending 2007, representing an increase of 15.7% on the previous year. During the period, the group invested a total of €103m in its store network - opening 52 new stores and creating 1,190 new jobs in the process. SPAR Ireland also confirms that it had moved into 5th position in the global SPAR International rankings, up two places from 2006.

Rehab Lotteries celebrates its 20th birthday in Ireland, launching the Rehab’s ‘Celebrations’ scratch card.

Teagasc, the Irish Agriculture and Food Development Authority, celebrates 50 years of operation in Ireland.

Red Bull Cola arrives in Ireland.

Superquinn shoppers raise €75,000 for Temple Street Children’s University Hospital.

Sweeney Oil enters into an agreement with Esso to rebrand its entire oil distribution and retail business, including 20 service stations, under the Esso flag.

NI-based distributor Nisa-Today’s signs supply deal with Galway retailer, Joyce’s, and plans to expand across Ireland.

JUNE The CSNA slams a new tolling system for M50 users for “not making business sense” for retailers and consumers.

Then Minister for Agriculture, Fisheries and Food, Mary Coughlan TD, is pictured with the Chairman of the Consumer Liaison Panel, Mark Cagney.

Fine Gael Agriculture Spokesman, Michael Creed TD, tells the Dáil that spiralling input costs and competition from cheap imports threaten to derail the Irish agri-food sector, following Cappoquin, the largest poultry farm in Ireland, being put into interim examinership.

SPAR Ireland announces record retail sales of €1.67 billion for the

The Centra Childline Big BBQ is launched, kicking off a month-long campaign aimed at encouraging people all over Ireland to host a BBQ and raise much needed funds for Childline during June.

Gala announces its sponsorship of the Gala All-Ireland Camogie Championships (inclusive of the Senior, Intermediate and Junior championships) for a further three years.

The Irish Petroleum Industry Association warns of a “retail desert” if current trends continue.

21

RN December08The Year in Review ●

The highest ever number of National Hygiene Award presentations to a single organisation, 340, are presented to Centra retailers by Tony Killeen TD, Minister of State at the Department of Agriculture, Fisheries and Food, while 20 Centra stores also receive the Supreme Hygiene Award.

Barry Group is awarded the Stonehouse Depot of the Year Award 2008, the fifth time that the company has received this significant award.

The National Lottery launches their new game, Millionaire Raffle, with two top prizes of €1m which must be won. The tickets, which are limited to 300,000, cost €20 each.

JULY The Intoxicating Liquor Bill 2008 passes through the Dáil and Senate, restricting off-sales of alcohol to between 10.30am and 10pm, and banning promotional ‘special offers’ of cheap drink. The Bill does not require structural separation of alcohol in-store, however, providing the trade can act in a responsible manner in the way in which it sells and displays alcohol.

The European Parliament approves updated and simplified rules for authorising enzymes, food additives and flavourings, which streamline the legislation into a single entity.

The latest NCA survey reveals that almost a quarter of Irish consumers have changed their grocery shopping habits since the start of 2008. 32% of shoppers are buying own brand products and 26% buying cheaper versions of products, while 26% are spreading their spend over different supermarkets. The NCA’s report also found that the average grocery spend is €151 per week, and that the primary motivations of choosing one store over another are convenience (61%), price (31%) and quality (21%).

Glanbia Consumer Foods are to sell and distribute the innocent drinks range into both Dunnes Stores and the convenience channel.

22

Pictured at the announcement of Gala’s continued sponsorship of the AllIreland Camogie Championships are President of the Camogie Association, Liz Howard, with Gary Desmond, CEO, Gala; Derry captain Claire O’Kane (left) and Wexford captain, Mary Lacey.

The National Standards Authority of Ireland announce a new initiative that will allow NSAI Legal Metrology (LMS) inspectors to increase their focus on the inspection of instruments for measurement used by retail traders, such as petrol pumps and supermarket weighing scales, to ensure they are accurate and comply with legal requirements.

Coca-Cola applies for planning permission for a new facility in County Wexford, valued at €190m and creating 100 jobs. The 41-acre site in Wexford Business Park will host manufacturing, laboratory and pilot plant facilities.

Dundrum Town Centre is revealed as Ireland’s most successful shopping mall by Ireland’s first ranking of

Irish Distillers Pernod Ricard announces the appointment of Alexandre Ricard as Chairman and Chief Executive Officer of the Company. Paul Duffy, who held these roles previously, is appointed Chairman and Chief Executive of Pernod Ricard USA.

AUGUST July 1 2009 is named as the date when all tobacco POS material and tobacco products are to be removed from view in-store.

Irish shoppers are crossing the border in huge numbers to do their shopping in Northern Ireland, with Sainsbury’s in Newry, Co. Down, reporting a huge surge in southern shoppers. Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan TD asks Forfás to conduct a survey into the cost of doing business in Ireland.

The National Lottery rebranded its entire retail package in 2008.

RN December08The Year in Review ●

accreditation, which is internationally recognised as being the benchmark for best practice in quality control systems for the food industry.

retail centres, the Irish Retail Centre Ranking by Experian, the leading global provider of retail property information on high streets and shopping centres.

Musgrave Group announce that Sharon Buckley has been appointed to the role of Group Commercial Director.

The National Lottery re-brands its entire retail package, with newly branded display kits installed into National Lottery accredited agents around the country.

Lucozade Sport has announced that it is to invest £100,000 in a new partnership with University of Ulster High Performance Centre at Jordanstown.

Cooley Distillery wins a record nine Gold Medals at the 2008 International Wine & Spirits Competition.

Tullamore Dew Whiskey wins an International Marketing Award in recognition of the effectiveness of its global campaigns.

Ireland’s first dedicated organic, licensed supermarket, The Organic Supermarket opens its doors on Main Street, Blackrock, County Dublin.

Michael Patten, Chairman of the Drinks Industry Group of Ireland.

SEPTEMBER BWG Foods’ brand new state-of-theart wholesale facility opens, accommodating both the Value Centre and BWG Foodservices businesses. The 52,000 square feet complex, located at the North City Business Park, off the North Road in Dublin 11, represents a €15m investment by BWG. The Drinks Industry Group of Ireland (DIGI) strongly criticises a report by food lobby group Agri Aware, which claims that Irish consumers spend more on alcohol than on food.

Forecourt Systems predict the arrival of totally unmanned petrol stations throughout busy interchanges in Ireland. The ‘pay-at-thepump’ terminals have already been installed on five pilot forecourt sites in counties Dublin, Limerick and Louth.

The Irish Payment Services Organisation warns retailers to be alert, in response to a recent scam, whereby criminals purporting to be Point of Sale terminal engineers tricked a small number of retailers into allowing them access to the terminals and PIN pads in their stores.

Tesco introduces a €100m price cutting programme, designating

black and amber ‘Cash Savers’ areas in-store, which includes products like meat, bread and vegetables.

Figures from the Revenue Commissioners reveal that wine sales are up 7.2% in 2007, signifying the consumption of 9.2m cases.

The Competition Authority calls for planning legislation to be amended, allowing for the development of hypermarkets in Ireland. Minister for the Environment, John Gormley TD is to examine planning regulations in early 2009.

Alcohol imports are threatening the stability of local brewers, according to Michael Patten, Chairman of the Drinks Industry Group of Ireland (DIGI), who reveals that Irish brewers’ share of the domestic market has declined by 22%, while imports have grown by 90%.

Heineken Ireland release their midterm results. Despite a slightly declining beer market (down 0.4% from 2007), Heineken’s company turnover increased by 3% to €156m in the six months until June 2008.

Horgan’s Delicatessen Supplies achieve the BRC (British Retail Consortium) global quality standard

Murphy’s wins one of the world’s most prestigious product quality awards, the Monde Selection Gold Award 2008.

Ireland’s Biggest Coffee Morning with Bewley’s, in aid of Hospice, takes place on Thursday, September 18.

The Bulmers International Comedy Festival takes place in Dublin, attracting some of the biggest names in comedy worldwide.

OCTOBER The first major assessment of the Retail Planning Guidelines has been undertaken, revealing a 275% increase in shopping centre floor space over the last six years.

The 90-page report was commissioned by RGDATA and undertaken by planners MacCabe Durney and Barnes Consulting. As part of the survey, MacCabe Durney and Barnes examined the location, size and pattern of retail development over the last eight years.

The report is broadly supportive of the system.

Irish Distillers Pernod Ricard assumes total marketing and distribution responsibilities for Absolut Vodka.

Tesco officially opens its first “eco” store in Tramore, Co. Waterford. The 23

RN December08The Year in Review ●

prepared consumer food sector through its R&D and Growth funds.

C&C sells its distribution arm, FindlaterGrants, to DCC for about €9.6m.

Alcohol sales dropped 7% in the first eight months of 2008, and are down 14% in August, compared to the same month last year, according to excise receipts from the Revenue Commissioners.

Superquinn Executive Chairman Simon Burke moves to quash rumours that the multiple group is up for sale.

The latest National Consumer Agency (NCA) grocery price report reveals that competition amongst Irish retail’s heaviest hitters is focusing on the own brand sector. The survey reveals a narrowing in the price difference between multiples and discounters, Aldi and Lidl.

Superquinn Executive Chairman Simon Burke insists the supermarket group is not for sale.

30,000 square feet store will use 45% less energy than a supermarket of a similar size, saving 420 tonnes of carbon dioxide per annum, a 30% annual reduction.

ADM Londis unveils a host of new store innovations across three key areas: layout and product arrangement; design and feature specifications; category and product focus.

New EU regulations require retailers who sell batteries to take waste batteries back.

As part of the new EU Waste Battery Directive, smaller retailers will receive a front-of-shop collection box, while larger outlets will be provided with barrels to allow for collection.

Ireland is one of the first four countries in Europe - along with Spain, Finland and Austria - to implement the new directive, as part of the European Recycling Platform (ERP).

Tesco releases a new study, revealing the benefits of the retail giant to the Irish economy. The study, carried out by independent group Indecon Economic Consultants, found that the retailer exports €655m of Irish food to its overseas stores every year. Furthermore, the retailer is worth €2.5 billion to the economy every year and employs around 27,000, in both direct and indirect capacities.

Repak Recycling Week 2008 takes place from October 6-12, 2008, with the theme, ‘Recycle More, Get out of the Kitchen’.

Glenisk Organic Dairy is awarded the Repak Best Practice Award 2008, while Musgrave Group wins the Repak Excellence Award 2008.

Irish Distillers Pernod Ricard launches a major €5m marketing drive in support of the company’s flagship brand, Jameson.

After a six-month, in-depth review process, the Competition Authority approves Heineken’s acquisition of Beamish & Crawford.

Diageo Ireland has entered into agreements to acquire a 73-acre greenfield site in Leixlip, Co. Kildare, with the intention to build a new state-of-the art brewery. The new brewery will be completed by 2013 and will be called the Arthur Guinness Brewery.

The Food Safety Authority of Ireland calls for changes to food labelling legislation. The FSAI wants country of origin to be clear on all food product labels to prevent the misleading labelling of products.

Musgrave Retail Partners awards its ‘Hot Beverages To Go’ contract for its SuperValu and Centra stores to Irish coffee supplier, Bewley’s, which will mean that 70% of their coffee sales are certified Fairtrade.

Enterprise Ireland launch a new strategy for the accelerated growth and international development of Ireland's prepared consumer foods industry. The Government, through Enterprise Ireland, expects to provide around €30m over the next five years to progressive companies in the

The Sunday Times is announced as the new sponsor of the current season of RTE’s Tubridy Tonight.

Michael Doyle, a long time supplier of Quality Assured lamb to Superquinn, is named Bord Bia Lamb Producer of the Year Award 2008.

24

New Mace Managing Director, Willie O’Byrne.

RN December08The Year in Review ●

Dublin, amounting to an investment of €350m.

The EU's Management Committee for Fruit and Vegetables amends the minimum size and shape standards for fruit and vegetables.

Garvey’s is awarded the Excellence Through People Platinum certification for best practice Human Resource Management (HRM).

Ferrybank Carry Out Off Licence is named Store of the Year within the Carry Out Off Licence chain nationwide.

Pictured at the Costcutter annual conference are: Niall Hartnett, Human Resources/Logistics Director, Barry Group; John McAllen, Commercial Director, Barry Group; Pat Falvey; Ray O'Driscoll, Finance Director, Barry Group; Edwina Lucey, Sales Director, General Wholesale Division, Barry Group; Marty Whelan, MC; and Jim Barry, Managing Director, Barry Group.

Cully & Sully won the prestigious Sial D’Or award for their soup products.

BWG Group announces the appointment of Willie O’Byrne to the newly created position of Managing Director for Mace.

Topaz announce that Fairtrade coffee will now be available through the Topaz network, in one of the country’s largest ever Fairtrade deals.

The NOffLA Gold Star Awards 2008 are held in Dublin, with Irish Distillers Pernod Ricard the big winners.

Bisto celebrates its 100th birthday in Ireland.

Wolf Blass is named International Red Winemaker of the Year Award at the 2008 International Wine Challenge in London.

Bewley's announces that it will become Ireland's first fully certified Carbon Neutral coffee company by year-end 2008.

NOVEMBER The Barry Group, who operate the Costcutter and Quik Pick brands in

Ireland, report a turnover of €691m in 2008. The combined investment in 2008 by Barry Group and its retailers was over €25m, which included the revamp of 25 stores and the development of a number of green-field sites. 32 new stores will join the group by the end of 2008, bringing the total number of Costcutter stores in Ireland to over 135. The target for 2008 is the opening of 22 new stores, leading to the creation of 300 jobs.

A new price survey into the cost of fuel at the pump in Ireland is likely to reveal that indigenous petrol charges compare favourably to Europe.

Rumours abound that Dunnes Stores is to be sold, with Asda identified as a likely buyer.

The Government’s decision to increase the VAT rate from 21% to 21.5% is broadly condemned.

Britvic’s Irish operations contributed €258m to the group’s total revenue of €1.1 billion.

Aldi plans to open 35 new stores and create 650 new jobs over the next three years, with locations mooted for Drogheda, Wexford, Mallow and

Topaz wins four Ireland Forecourt and Convenience Retailer Awards.

Musgrave Retailer Services, Energia and ResourceKraft team up to launch a new initiative which will potentially see up to 2,100 tonnes of CO2 eliminated from the atmosphere, with a possible annual saving of approximately 44 megawatts of electricity to the national grid.

Superquinn win six new awards at the recent Blas na hEireann National Irish Food Awards.

DECEMBER The VAT rate is increased from 21% to 21.5% on December 1.

BWG report annual sales of €1.3 billion, an increase of 5% over the previous year’s figures, in its first full year of ownership by Triode Investments Ltd. TNS mrbi Christmas Shopping Survey reveals that festive spending will be down for Christmas 2008.

ADM Londis pic appoints Peter Foley as Commercial Director for the group.

Cologne-based Intersnack buy 15% of Largo Foods for €15m.

All Irish pigmeat products are removed from sale, in the biggest product recall in recent history.

25

The following suppliers would like to join with all their retail, wholesale very MerryChristmas andd a

to the grocery trade Retail News in wishing and cash & carry clients a peaceful and profitable New Year

So fresh itâ&#x20AC;&#x2122;s famous

Retail News will not be sendingChristmas cards this year. Instead, we will be making a donation to chharity.

26

27

December08The

Retail News Interview

The Future for FMCGs Damian O’Reilly, School of Retail Management, DIT, on the current trends and future prospects for Ireland’s retail industry

Whatever

way you look at it, 2008 was anything but a vintage year for Ireland’s retailers. Another poor summer didn’t help, but the big problems were global in scale, the worldwide credit crunch hitting every sector hard, and the retail/FMCG market was no exception, as consumers cut back on discretionary spending. Damian O’Reilly, from DIT’s School of Retail Management, is well-placed to put the current state of the industry in perspective.

“What is happening in Ireland, as in the rest of the world, is increasing polarisation within the retail industry,” he explains. “This is partially due to what is referred to in consumer behaviour as the ‘schizophrenic shopper’ who, in the current economic climate, is becoming more discerning, especially on price. These shoppers seek value and quality but are prepared to shop around to get what they want. At one end of the market, we have the low cost providers, the likes of Tesco and the deep discounters, and at the other end, niche players, spe-

28

cialising in a particular category, like fresh food or organic food.”

According to Damian, this polarisation is extremely obvious within the FMCG market, with the low cost grocery providers on one side and the premium goods providers on the other. Indeed, he feels that stores who do not have this point of differentiation will find it tough to survive the difficult economic storm ahead.

“Not everybody can be a low cost provider,” he avows. “Very few can. So retailers need a value proposition that will differentiate them within the market, something that the competition don’t have, no matter what your business model.”

Finding Your Niche Differentiating your store/group from competitors’ will become increasingly important over the course of the next year, according to Damian, who foresees consumers’ belts tightening even further.

“Those companies who don’t have a niche or a focus will be hit hardest,”

he predicts. “In the new year, once the sales are over, I think we will see many retailers in Ireland struggling, with many failing to survive - which has been happening in the UK and the United States recently.

“Even though inflation is coming down and there is a prospect of lower food and fuel prices next year, alongside falling interest rates, I still think we will have less disposable income next year, as a result of higher unemployment in general” he says, going on to predict that unemployment rates will be in excess of 10% in 2009.

Nevertheless, he feels that the Christmas period will be a good one for the grocery trade, and supermarkets in particular. He points to a recent Deloitte survey, which indicates that 57% of people will spend the same this Christmas as they did last year, with 19% expecting to spend more and just 24% feeling that they will spend less.

Flexible Supply Chain It will be in 2009, however, when the credit crunch really starts to bite the

December08Retail

FMCG market. So what can retailers do to give them the best chance to survive?

“Retailers who are able to have better flexibility in their supply chain will prosper,” he notes. “When tastes change, for example with consumers opting for lower cost goods, retailers who aren’t flexible enough aren’t able to react quickly enough. Within the FMCG market, Tesco recently brought in a discounted range of around 1,300 products to try to match the discounters’ range and prices. This is all about reacting to market conditions.

Those who have better control over their supply chains are able to react quicker to market demand. Those issues are going to become more prevalent in 2009 and 2010.”

Retailers are going to have to implement cost savings, either through redundancies or introducing cost efficiencies into the supply chain.

New technology will play its part.

“Technology is going to exert a bigger influence on retailing in the future, from supply chain management, centralised distribution, the use of EDI (Electronic Data Interchange) to the advent of RFID (Radio Frequency Identification),” he notes.

“RFID is currently too expensive for everyday products. But any of these emerging technologies will be able to drive efficiencies into the system and if the big retailers embrace them, suppliers will follow suit and the pressure will come on the smaller retailers to do likewise.

“In the US, cashiers are already being subjected to time-and-motion studies, whereby the amount of time it takes to scan, pack and perform each cash/credit card transaction is being calculated and cashiers are given a target time to achieve,” he notes, predicting similar exercises being introduced on this side of the Atlantic.

Waning Customer Loyalty He also predicts that customer loyalty is waning: “Consumers are being less loyal to retailers than previously, because they are looking for better value and cheaper prices. Convenience remains the number one reason why consumers

News Interview

will choose a particular store but price and value are becoming more and more important. This is also putting pressure on gross margins, which I believe will come under significant pressure in the coming years, as retailers attempt to maintain market share.”

This, in turn, will place increased pressure on suppliers. “Already, some of the big retailers are putting pressure on their suppliers,” he avows. “With Tesco’s discount range, for examDamian O’Reilly, School of Retail Management, DIT. ple, they are asking their “Even though you have the Minister suppliers to become more efficient calling for consumers to shop south of within their own operations to drive the border to help the economy, Irish down costs in an attempt to reduce consumers are shopping up North prices. In terms of non-food items, because many comparison goods are which are becoming an increasing significantly cheaper,” he states. proportion of sales within supermar“That’s not just because of the kets, the big retailers are asking supchanged VAT rates, but also due to pliers to extend credit terms available the euro’s strong performance against to them.”

Sterling. This is particularly hitting Although cognisant of the large stores in the border area, many of numbers of shoppers travelling to whom are only able to continue tradNorthern Ireland for their groceries, ing because they have very strong O’Reilly feels that “once Christmas fresh food and deli sales, which they has passed, the majority of Irish conare able to maintain margins on. sumers will return to shopping at “Similarly, convenience stores in their local stores. the city centres are suffering, because “Even though fuel prices are of factors like high rents, lower footfalling,” he notes, “anecdotal evidence fall, and lower discretionary income.” suggests that people, in general, are shopping closer to home.”

Irish shoppers travelling to the The VAT Increase North will remain a problem for The Government’s recent VAT stores in the border areas, however. increase, which came into effect on December 1, is certainly not helping matters, however.

“I don’t think the increase in VAT has been well-thought out,” opines O’Reilly. “I don’t believe it will generate sufficient revenue for the Government and they could have raised revenue in other areas. It is decreasing stimulus in the retail sector.”

Retail Planning Guidelines Another factor which could impact on retailing in Ireland in 2009 is Minister for the Environment, John Gormley TD’s plan to re29

December08The

Retail News Interview

examine the Retail Planning Guidelines next year.

“I wouldn’t be in favour of changing the guidelines as they stand, whereby there is a cap of 3,500 square metres on supermarket size in Dublin and 3,000 square metres for the rest of the country,” O’Reilly stresses. “We have a high retail cost model here and that has assisted the growth of convenience stores throughout Ireland, and they in turn also help to maintain the vibrancy of town centres, especially outside the greater Dublin region.”

He worries that various county councils are giving planning permission for edge-of-town retail parks, often for the increase in funding such development brings. “What’s happening is that some of the traditional high street retailers are moving to these retail parks, which in turn is taking shoppers out of the high streets, and is taking footfall and retail spend away from town centres.

“Good planning is essential, not just at a national level but at a county level, so that they are streamlined, particularly for development which straddles more than one county, as is the case with Athlone,” he continues.

“It is crucial for inner city and town regeneration to have good planning and not to allow traditional high street retailers into retail parks: retail parks should be kept for ‘big box’ retailers, like PC World and the DIY stores.”

He feels that these DIY stores, along with large retailers with offerings in hardware and homeware, will suffer when IKEA opens in Dublin’s Ballymun next year.

The Growth of the Discounters It is not just from outside the grocery sector that change is going to come, however, with the discounters, Aldi and Lidl, gaining market share at the expense of the supermarket groups.

“Recent statistics show that Aldi have 4.5% market share in Ireland, with Lidl at around 6%, which gives the discounters a combined share of over 10%, the highest it has ever been,” notes O’Reilly. “They are eating into the market share of other retailers, with Dunnes Stores and 30

Superquinn probably the hardest hit.”

The Asda Effect

“We’re not going back to the ’80s. We still have more disposable income compared to back then. We might be becoming more price sensitive but we are still going to buy quality.”

Rumours persist that Ireland could soon have another competitor, in the shape of Asda, who were most recently linked to a buy-out of Dunnes Stores.

O’Reilly feels that such a move may not be the best fit for the UK supermarket chain, part of the massive Walmart group, as they have their own clothing line (George) and may only be interested in the grocery business within Ireland. If Asda were to enter Ireland, what might it mean for the current players?

“I don’t think they would impact on the hard discounters’ share,” he opines. “I think the biggest impact would be on Tesco’s market share.

They compete directly in the UK and it is estimated that in the 12-week period to December, £22m in sales has gone pretty much directly from Tesco to Asda within the UK market. At the other end of the market, I don’t think Asda would seriously impact on Superquinn or Marks & Spencer’s share, both of whom have very loyal shoppers. If Asda were to enter the market, it would be good news for consumers as it would drive costs down.

However, it may not be good news for suppliers, as Asda source a lot of their stock from the UK.”

The Future for FMCG So what is the outlook for Irish FMCG retailers over the coming year or more?

“I think the bigger retailers are going to increase their share of wallet in the coming 18 months, particularly in the grocery sector, because people have to spend money on groceries: they can postpone purchases elsewhere but they still have to buy groceries,” he notes. “Low cost providers buy in bulk, driving efficiencies into their operation. Those who do not have the scale to drive down costs will have to have a value proposition or an offering that entices the consumer to part with their hard earned cash.”

Over the longer-term, O’Reilly is quietly optimistic.

“We’re not going back to the ‘80s,” he stresses. “We still have more disposable income compared to back then.

We might be becoming more price sensitive but we are still going to buy quality. Impulse sales are going to decrease over the next 18 months but we are still going to treat ourselves with quality purchases to satisfy our personal needs.

“When Japan hit recession, the country went into a 10-year slump, but I think the policy makers here in Europe are being slightly more aggressive in handling the credit freeze and the economic downturn. I think governments and government policies will have a bigger impact in the future, as they will attempt to better regulate the financial markets, rather than allow free market conditions as prevailed over the last 10 years.

“When the economy does start to rebound, I don’t think we’ll have anything like the growth we enjoyed in the last decade. I think there will be negative growth next year and a slight recovery after 2010.”

Since launching in 1998 and now with over 300 stores open, the Gala Group is maintaining its number 1 position as Irelandâ&#x20AC;&#x2122;s fastest growing retail symbol group. Operating under three brands, Gala, Gala Superstore and GalaXpress, the Gala retail team have a unique knowledge of the needs and ambitions of retailers and place a strong emphasis on retailer profitability. So, if you want to connect with Irelandâ&#x20AC;&#x2122;s most dynamic retail group, make sure you call Gala first, on Callsave

1850 600 100.

Your local market

Proud sponsors of the Gala All-Ireland Senior and Junior Camogie Championship

RN December08Breakfast Time ●

Fresh Start How to make the most from the all-important breakfast market, from cereals to meat products, coffee to bread.

It

has been well-documented that breakfast is the most important meal of the day, and consumers are increasingly aware of this fact. Combined with the continued move towards healthy eating, demand for breakfast products has never been higher, with manufacturers quick to promote their ranges’ health credentials.

Breakfast cereals remain extremely important, with an estimated 97% of Irish households cereal purchasers.

If anything, cereals are growing in popularity, along with the move towards both convenience and healthy eating. Indeed, the combined market for bakery and cereals in Ireland increased by an average of 3.4% between 1999 and 2004, and the market is currently estimated to be worth over €185m.

In tandem, oat-based products have been growing in popularity, as consumers increasingly turn on to the health benefits of porridge, which include its high protein content, richness in fibre, gentleness on the stomach and the fact that it helps to stabilise blood sugar levels.

But how do retailers maximise the cereal category in recessionary times?

32

Kellogg’s Corn Flakes, Kellogg’s Special K, Kellogg’s Rice Krispies, Kellogg’s Coco Pops and Kellogg’s Crunchy Nut represent five of the top seven breakfast cereal brands in Ireland.

Kellogg’s

improved value on a per serving basis. Availability of these pack sizes should be maximised.

According to Kellogg’s, in today’s challenging economic environment, consumers are becoming increasingly focused on value. Breakfast cereals are a nutrient dense breakfast option that offer great value for money – with the average bowl of ready to eat breakfast cereal costing between 20 and 30 cent.

In Ireland, we consume more breakfast cereal per capita than anywhere else in the world. This has brought significant population health benefits to Irish consumers of all ages, with about one quarter of our essential vitamins and minerals coming from breakfast cereals (Source: Irish Universities Nutrition Alliance Food Consumption Surveys 2001, 2005, 2008).

Breakfast cereals have also been shown to play an important role in helping people to manage their body weight, since those who regularly consume breakfast cereals tend to be slimmer than individuals who skip breakfast.

The value that breakfast cereals offer is unequivocal and with household penetration of the category at 97%, Irish consumers are extremely loyal to the category. However, a number of steps can be taken to reinforce this value message to today’s price-conscious consumer.

Flahavan’s

1. Better-Buy Value Packs Larger 750g and 1kg packs offer

Flahavan’s is constantly developing its product range to meet the everchanging needs of the Irish consumer

2. Support for Category Leaders Trusted brands, such as Kellogg’s Corn Flakes, Kellogg’s Special K, Kellogg’s Rice Krispies, Kellogg’s Coco Pops and Kellogg’s Crunchy Nut represent five of the top seven breakfast cereal brands. These will continue to perform strongly in an uncertain economic climate.

3. Enhance Visibility for Category Continued use of displays, side displays and secondary displays is important in a retail environment that is becoming increasingly promotions-driven. Every effort should be made to minimise outof-stocks – particularly on category leaders and value packs.

4. Support for Category Innovation New products such as Kellogg’s Special K Oats & Honey and Kellogg’s Coco Pops Moons & Stars should also be offered support, as these brands will help to drive category growth.

RN December08Breakfast Time ●

goodness of 100% organic wholegrain oats. High in fibre with no added salt, sugar or artificial flavourings, colourings or preservatives, these new products are as natural as nature intended.

Ready Brek

Flahavan’s has added two new easy to prepare organic products, Organic Quick Oat Sachets and Organic Portable Porridge Pots, to its Quick Oats range.

for a healthy and convenient breakfast. Claiming 64.5% share of the hot oat cereal market, Flahavan’s product innovation ensures it is Ireland’s number one porridge maker.

As part of its successful Quick Oats range, Flahavans has added two new easy-to-prepare organic products, Organic Quick Oat Sachets and Organic Portable Porridge Pots. These single serving microwavable options provide a quick, warm and nutritious breakfast, which releases energy in the body throughout the cold winter mornings.

Simple preparation in just three easy steps helps make a breakfast full of taste, warmth and goodness.

Flahavan’s Quick Oat Sachets 8 x 35g box, with a reusable liquid measure, are ready in just two minutes, while Flahavan’s Organic Pot, available in a 40g serving, can be made by simply microwaving or adding boiling water and is ready in just 90 seconds. The cool-to-the-touch exterior makes the Organic Pot a truly portable product ideal to enjoy in the office or home.

People are choosing to eat organic porridge as it provides a healthy and nutritious alternative to cold cereals with the added benefit of the natural

Made from 100% wholegrain oat goodness, Ready Brek delivers slow release energy and has been formulated to meet the nutritional needs of the whole family. It contains no added salt or sugar, is fortified with key vitamins and minerals such as iron (the commonest nutritional deficiency in children), as well as being rich in calcium.

New Ready Brek Honey is perfect winter fuel for kids and contains all the nutritional Ready Brek is easy-to-prebenefits of Original Ready Brek. pare, consumers simply add hot milk to your bowl of Ready Brek the day ahead. Many children need to and stir. Ready Brek is available in be encouraged to the breakfast table Original, Chocolate and now new as they seem to see it as a daily chore.

Honey flavour. The delicious Honey In light of the positive contribution variety is perfect winter fuel for kids that breakfast cereals can make to and contains all the nutritional benechildren and teenage diets, it’s heartfits of Original Ready Brek. ening that cereal is a popular choice.

A survey of 7-14 year-olds in the However, parents should look out for UK, carried out by Ready Brek, found wholegrain cereals that are low in salt that one in five children have to be and sugar, as not all cereals are as told to eat breakfast, despite it being healthy as they seem.” the most important meal of the day.

The survey, carried out by Tickbox.net/Opinion Matters, also Lifeforce found that 7-14 year olds are already From Boyne Valley Group, the Lifeforce being influenced by healthy eating range of healthy food has an exciting, messages as 10% of those surveyed brand new look. Lifeforce’s wide range claim that the nutritional value of of premium quality, healthy foods are their breakfast influences their choice full of natural goodness. of food. Almost nine out of ten children Lifeforce Original Irish Muesli, insist that a bowl of cereal is their prenow with an exciting new look, is synferred choice in the morning come rain or shine: only 16% would prefer a cooked breakfast.

Sian Porter, consultant Dietitian to Weetabix, said: “Breakfast is a really important meal for all of the family as it kick-starts everyone in the morning and proLifeforce Original Irish Muesli, now with an exciting new vides energy and look, is high in complex carbohydrates, fibre and other key nutrients for nutrients, essential for the most important meal of the day.

33

RN December08Breakfast Time ●

onymous with wholesome, healthy eating. This satisfying breakfast cereal is high in complex carbohydrates, fibre and other nutrients, essential for the most important meal of the day.

Lifeforce Muesli is easy to prepare and tastes simply delicious with both cold and hot milk. It is made from the finest Irish grown cereals and specially selected nuts and fruits. Lifeforce Original Irish Muesli tastes as nature intended, without artificial additives or table sugar. The naturally sweet flavour is attributed to the finely chopped dates and finest raisins.

Lifeforce Original Irish Muesli is available in 1.5kg and 750g packs.

A ‘Tried ‘n’ Tested’ taste panel carried out by the Irish Independent rated Lifeforce Original Irish Muesli as one of the best mueslis on the Irish market.

The panel rated the taste, appearance and the sumptuous fruit quantity in the muesli as being excellent.

New to the Lifeforce Muesli range are Lifeforce Tropical Muesli, which is certified Fair Trade, and Lifeforce Gluten Free Muesli, both available in 500g.

Lifeforce is celebrating its new look with some very exciting promotions on offer in the coming months, as well as some very strong Lifeforce advertising in both consumer press and on radio.

Bonne Maman, with its unique design and ‘home made’ image, really stands out in-store. Irish consumers are trading into premium offerings in jam with an emphasis on quality and Bonne Maman jams boast a minimum of 50% whole fruit per 100g of jam product.

Bonne Maman is available in Strawberry, Apricot, Blackcurrant, Blackberry, Raspberry, Peach, Damson Plum, Berries and Cherries, Wild Blueberry, Orange Marmalade and Mandarin Marmalade flavour.

Bonne Maman Jams are a 100% natural product and are free from preservatives, flavouring and colouring.

Bonne Maman’s success will continue into 2009 with a heavyweight national promotional campaign.

Boyne Valley Honey

Boyne Valley 250g Squeezy Honey has

been specifically developed with Boyne Valley Honey has been available young consumers in mind and to Irish consumers for almost 50 years features the ‘Bizzy Bee’ character and is the most popular brand of honey on-pack. in Ireland. Boyne Valley Honey is 100% pure and natural. It is available in a range of formats, from the 250g kids squeezy right up to the 907g jar. The 250g squeezy has been specifically developed with young consumers in mind and features the ‘Bizzy Bee’ character.

2008 saw the launch of Boyne Valley Manuka Active 10+ Honey, available in 350g Bonne Maman jars. Manuka Honey is one of the Bonne Maman, the premium French key drivers of growth in the honey jam, from Boyne Valley Group, has full category, with consumers recognising distribution throughout Ireland and its various health benefits. has seen a very impressive 25% growth Also new to launch from Boyne Flora is made from a heart healthy blend of year to date. For many years, Bonne natural seed oils, rich in Omega 3 and 6, Valley Honey are a range of variMaman has been the uncontested lower in saturated fats than butter and etal honeys in 350g squeezy, includleader in its market with a continuing virtually trans-fat free. ing Organic Acacia, Wildflower, strategy to sustain growing consumer Orange Blossom and Eucalyptus. demand, according to the company.

Flora Flora, Unilever’s global heart health brand, offers the perfect start to anyone’s day with both the main brand and Pro.activ ranges.

Flora’s mission is to make Irish hearts healthier and product development of the range is firmly in line with the latest research on diet and heart health. Flora is made from a heart healthy blend of natural seed oils, rich in Omega 3 and 6, lower in saturated fats than butter and virtuBonne Maman jam, with its unique design and ‘home made’ image, ally trans-fat free. Flora’s recent on really stands out in-store. pack promotion ‘Cooking with Schools’ 34

RN December08Breakfast Time ●

Great Taste Gold is set to encourage children Awards for Rudd’s all over Ireland to look after Traditional Black their heart health from an pudding and Roulade early age. of Black and White The Flora main brand Pudding. range consists of Flora In response to Original, Flora Light, market demand, Flora Buttery Taste, Rudd’s have launched Flora No Salt, Flora a butchery range, Omega 3 Plus, along which includes dry with Flora Culinesse. cure rashers (5kg The Flora packs), loose link pro.activ cholesterol sausages (5kg packs), lowering range, black, white and which is endorsed by roulade pudding in the World Heart Brady Family has recently launched an exciting range of Irish breakfast 1kg large diameter Foundation, is suitproducts, all carefully crafted to unique traditional Irish recipes. chubbs and plain able for those wantand flavoured dry cure bacon backs. providing strong impact on-shelf. ing to lower their cholesterol and folThese products are ideal for any Only the finest Irish ingredients are low a healthy diet and lifestyle. All butcher counter. used and in keeping with the Brady products in this range, including extra All products are free from colourFamily philosophy, the entire range is light spread, olive oil spread, ing agents and artificial flavourings free from colouring agents and artifiskimmed milk, mini drinks and low and are available nationwide from cial flavourings. fat yogurts, contain plant sterols, an Brady Family Ltd. active ingredient that's clinically proven to significantly lower bad Rudd’s Fine Food (LDL) cholesterol. Plant sterols and Rudd’s Fine Food enjoys a very loyal Avonmore Milk stanols can lower LDL cholesterol by following by its customers. The range, Milk is an integral part of any Irish 10-15% in just three weeks, when which includes thick cut dry cure breakfast, whether it’s the creamy moving to a healthy diet and lifestyle. rashers (210g), meaty pork sausages milk in your morning coffee or the (400g), traditional black and white essential chilled accompaniment to pudding and the innovative Roulade your bowl of breakfast cereal. A servBrady Family of pudding (240g) are all made to traing of milk as part of a nutritious The name ‘Brady Family’ has long ditional Irish recipes. Rudd’s pudding breakfast provides all the goodness been synonymous with great tasting, range is available in two formats: in consumers need to kick-start their quality, traditional, hand crafted Irish traditional chubb (280g) or pre-sliced day. ham. Using expertise gained through in a tray for convenience (240g).

Avonmore Milk, from Glanbia this craftsmanship, Brady Family has Rudd’s has been acknowledged as Consumer Foods, continues to be recently launched an exciting range of a leading producer of breakfast prodIreland’s favourite milk at breakfast traditional Irish breakfast products, ucts, winning numerous prestigious time, with a 31% value market share all carefully crafted to unique tradiawards in 2008, including two coveted (Source: ACNielsen). Through recognitional Irish recipes. tion of emerging consumer trends, The exciting new range such as health and wellness, includes traditional Avonmore has developed a targeted thick cut rashers milk portfolio that offers fresh milk, (210g), pork sausages low fat, fortified, skimmed and spe(227g and 454g), black cialty options. The range includes and white traditional Super Milk, market leader in the forchubbs (300g) and tified milk sector with 91% volume mini black and share (Source: ACNielsen, July ‘08), white chubbs Slimline, Low Fat and (260g). The new Fresh Milk, so there range offers the ‘old is something for every fashioned’ flavour, taste at breakfast so rarely found in time. today’s marketAvonmore has a place, making it an proven track record ideal choice for conRudd’s has been acknowledged as a leading producer of breakfast products, in driving value sumers. winning numerous prestigious awards in 2008, including two coveted and growth within The packaging is Great Taste Gold Awards. the milk category. simple but effective, 35

RN December08Breakfast Time ●

have a popular range of Sodas, Batches and a Granary to choose from.

When choosing which brand to buy, the key differentiating factor between brands is freshness, according to the company, whose Brennans Family Pan, in its distinctive premium wax packaging, is synonymous with freshness.

Nescafé

The Avonmore Milk range includes Super Milk, market leader in the fortified milk sector, as well as Slimline, Low Fat and Fresh Milk, so there is something for every taste at breakfast time.

The Irish love affair with coffee continues as consumers drink on average 190 cups of instant coffee per capita per year. The Irish soluble coffee market is worth over €51m and Nescafé leads the market, claiming an overall market share of 50% (Source: ACNielsen, November ‘08). Nescafé dominates three out of the four

tent, heavy advertising investment over many years and the company is committed to continuing this investment.

Research suggests that breakfast is the most important meal of the day.

Brennans have a rich Brennans variety of breads in Brennans is by far and away the leadtheir portfolio to suit ing bread brand in Ireland and the all consumer tastes. brand’s leadership is attributed to the Irish consumers bakery’s constant refining of the bakfavour bread for its ing process, updating equipment and Nescafé Original is supported with its ‘Become A Morning versatility and conimproving technology, as well as a Person’ advertising campaign on both TV and outdoor. venience, its taste, consistent investment in branding value for money and variety. The instant coffee sectors, claiming 53% support. The Brennans brand has Brennans range has something to suit share in granules, 56% share in prebeen built and maintained by consisall tastes and mium and 67% share in café style. requirements at Renowned for its coffee expertise, the breakfast Nescafé was launched by Nestlé in table, including: Switzerland in 1938, having been White, the first company to develop the Wholegrain and technology that produces instant Wholemeal in soluble coffee. 70 years later, both 800g and Nescafé has an impressive portfolio 400g formats. The of products to suit a wide range of Natural Recipe coffee tastes.

Breads are a deliWhen it comes to that first cup of cious range of coffee, Nescafé Original is the perfect Crunchy Breads way for consumers to start their day presented in four with its blend of richly roasted coffee varieties: granules. Nescafé Original is supportWholemeal, Bran, ed with its ‘Become A Morning Person’ The Brennans brand has been built and maintained by Oatmeal and Rye. advertising campaign on both TV and consistent, heavy advertising investment over many years Brennans also outdoor. and the company is committed to continuing this investment.

The continued success of the Avonmore brand is attributed to a commitment to innovation, a strong understanding of consumers and ongoing investment in highly visible national marketing campaigns, led by the flagship sponsorship of WeatherLine across all three terrestrial channels.

36

December08Update

Moy Park Chairman Steps Down WITH Moy Park now entering a new era as part of the Brazilian Marfrig Group, Dr Trefor Campbell has stepped down as non-executive Chairman, having completed his role in helping the new Managing Director, Nigel Dunlop, succeed him as the first new name in the Moy Park MD seat since 1982. Since the 1980s, Moy Park has led the way for highwelfare poultry farming, and was the first major poultry company to embrace free-range production on a large, commercial scale, as well as making huge leaps forward with indoor production. The company also led the way for further processed chicken meat. Dr Campbell steps down from his outstanding 30-year career with deep-felt thanks for his many years of loyal service to Moy Park from both the OSI Group and the new owners, Marfrig. Dr Trefor Campbell is pictured with Nigel Dunlop, the new MD of Moy Park.

Superquinn Wins ‘Green Retailer’ Award SUPERQUINN has been awarded the ‘Green Retailer Award 2008’ at the inaugural Green Awards held earlier this month. The awards are designed to recognise individuals, businesses, and organisations for their commitment to green policies and practices. The retailer’s award highlighted the various ways in which it has successfully incorporated green policies and practices into the business, including: local sourcing of products, recycling (almost 50% of waste material processed by Superquinn in 2007 was recovered and re-directed to constructive use), energy and water efficiency and transport management.

SuperValu to Sell €2m of Irish Onions SUPERVALU has announced projected sales of €2m of Irish onions in 2008. This represents 1,500 tonnes of onions, which are all provided by four growers from the Bandon Co-op. Overall onions sales are projected to grow by 10% over the 2007 figures. SuperValu traded €255m worth of fresh fruit and vegetables in 2007, which represented an increase of 11.9% on its 2006 performance. This figure is expected to rise to approximately €280m in 2008. Pictured are (l-r): SuperValu Category Manager for Fresh Commodity, Ian Allen, with SuperValu local Supplier, John Coffee, Production Manager, Bandon Co-op.

Topaz Scoop two Credit Management Awards TOPAZ recorded two successes at the recent Irish Institute of Credit Management Awards, which were held at the Conrad Hotel in Dublin. The Topaz credit team received the award for Trade Credit Team of the Year, while Joe Fitzgibbon was the recipient of the Trade Credit Manager of the Year. Pictured at the awards ceremony are(l-r): Sean MacMahon, President of the Institute; Nick Biggam, award sponsor – Intrum Justitia; Joseph Fitzgibbon, Topaz, Trade Credit Manager of the Year, and Joe Meade, Financial Ombudsman.

Retail Workers Suffering Verbal Abuse MANDATE trade union, which represents over 50,000 workers in the retail sector, has called on Christmas shoppers to respect retail workers over the Festive period. The trade union launched a major new campaign called ‘Respect Retail Workers’, which aims to create more awareness of this issue and protect shopworkers from abuse and violence in the workplace.

The campaign came about as a result of an increase in complaints from retail workers regarding both verbal and physical abuse from customers.

Mandate commissioned research to establish the extent of this abuse and the preliminary results reveal that over 70% of retail workers experienced verbal abuse in the last 12 months, with a further 30% of retail workers receiving threats from a customer in the past year and almost 10% of shop-workers being assaulted by a customer during the course of their employment.

37

December08Shop

Profile

Enfield’s Award Winners Paul and Regina Kiernan’s Gala store in Enfield, Co. Meath, was recently named Gala Store of the Year 2008.

For

a store that only opened its doors in November 2006 to be named Gala Store of the Year 2008 is quite an accolade, particularly when you consider that it was runner-up in the same competition the year before. However, Kiernan’s Gala in Enfield, Co Meath achieved just that.

“Coming runner-up last year was a fantastic result,” enthuses store owner Paul Kiernan. “Obviously, myself and Regina were delighted, as were all the staff . It was great to do so well in our first year of trading. But it also sparked a hunger in all of us to make sure we did as well this year, or even better. The fact that we managed to win it this year, during the 10th anniversary of the Group, is really fantastic. Even the local community are delighted that their Gala is the best in the country.”

Community Store Paul’s choice of words is telling: Kiernan’s Gala isn’t just Paul and Regina’s shop, it isn’t just a Gala group store, it is a community shop. Paul and Regina and the shop are intimately connected to the town. Kiernan’s Gala provides employment for 16 local people, as well as sponsoring local events and sports teams. Paul is closely involved in the Tidy Towns association and last year Kiernan’s restored a

Pictured are (l-r): Gary Desmond, CEO, Gala Retail Services Limited; Paul and Regina Kiernan, Kiernan's Gala Enfield, Winners of the Gala Store of the Year Award 2008, and Caroline Morahan, event MC.

local derelict cottage, in partnership with a local youth group, helping Enfield itself to score quite highly in the Tidy Towns competition.

A strong commitment to the local community helped Kiernan’s Gala to its victory, but the Store of the Year competition involves much more. Paul has extensive experience of the Irish grocery sector, having worked with Dunnes

Paul Kiernan, store owner, and the staff of Kiernan’s Gala, Enfield, celebrate their Gala Store of the Year Award 2008.

38

December08Shop

Stores, Quinnsworth and as a Gala Regional Manager prior to opening his own store. “Everything I have learned in that time has taught me that if you want to operate a successful shop, you must have excellent systems in place regulating every aspect of the business,” he notes.

And the systems in Kiernan’s Gala are second to none.

So efficient is the Retail Solutions package, which controls stock and ordering, and so regular the deliveries from local wholesalers through central billing, that the shop has almost no stock-room at all: the largest area dedicated to stock is the HACCP mandated chilled store for deli produce.

“Right from the design stage I intended to operate with a minimum of storage space,” Paul explains. “You can’t sell stock that isn’t on display. With the effectiveness of our stock monitoring systems and three deliveries available per week, I knew we could operate the shop without a large stock area. It also allowed us to maximise the floor space dedicated to grocery items. That turned out to be particularly useful as trade developed in the shop. Initially, we had a stronger focus on convenience than grocery trade, but there are a lot of young families in the town and very quickly we realised that customers wanted a larger grocery selection. In the two years we have been open, we have doubled the range of grocery that we offer.”

Profile

Well-Trained Staff Staff was another critical factor. “Well trained staff with good customer service skills are a critical component of doing well in the competition. A lot of that can be taught, but some people are also naturally better at things like interacting with customers. Regina and myself put a lot of effort into finding the right type of people to work here and of course, into subsequent training.

“The effort we have put in there has been more than rewarded by the excellent standards to which all our staff operate and the fact that 14 of the 16 staff here have been with us since the first day. That means not only are they well trained, but intimately acquainted with the particular operating systems we have in this shop.”

Strong Support The store owner recognises the input of the Gala group to his business’ success. “Gala is an extremely professional organisation that has never lost sight of the fact that it is there for the shop owner,” he states. “The group is always ready to give good advice, to find solutions or offer alternatives and that’s the type of support I need to operate this shop to the highest possible standards. The support of everyone at Gala has been integral to the success of this shop.”

Paul pays particular tribute to Liam Linden and Paschal O’Brien at 4 Aces wholesale and the staff at Better Deal (Navan): “Without their reliable wholesale deliveries and value offers, the shop could not have done as well as it has.”

Paul’s most important partner during the entire project, however, was his wife, Regina: “Even though she had no grocery experience at the start of this project, she has picked it up remarkable quickly and she has been an absolutely amazing help to me.”

Despite their runaway, success, however, the Kiernans are not resting on their laurels. “Next year we’ll be looking to get a back-to-back win but it’s going to be tough,” Paul admits. “Every year, the standards in the competition get higher, as do the standards in other FA C T F I L E shops. We relish Owner: Paul & Regina Kiernan that challenge, Location: Enfield, Co Meath that competition Size: 2,200 square feet retail space and it also Number of means that Staff: 16 full & part time every year, Opening Gala shops get hours: 07:00-22:00, seven days. better and the group gets stronger.”

39

December08Whiskey

John Teeling (centre), Chairman, Cooley Distillery, is pictured with Jack Teeling, Sales & Marketing Director, and Stephen Teeling, UK Brand Ambassador at the IWSC Awards.

A Brand Apart Following Cooley Distillery being named World Distiller of the Year at the 2008 IWSC Awards, Chairman John Teeling explains the secrets behind their success and predicts a bright future for Irish whiskey.

Cooley

Distillery was recently named as World and European Distiller of the Year at the 2008 International Wine and Spirit Competition (IWSC) Awards, the top award in the premier spirits competition in the world. This is the first time an Irish distiller has ever won this award and is quite an accolade for the independently-owned Irish whiskey distiller.

“It is unprecedented for an Irish owned company to be named World Distiller of the Year, especially a company that’s just 21 years old,” enthuses Cooley’s Chairman, John Teeling. “But you have to remember that while Cooley is a new company, the way we distil is very traditional, which was a strategy we identified from the very start. We distil in the traditional way, store in oak casks and mature in 200-year-old ground.

We now make some of the best whiskeys in the world. But still, for such a young company to win this 40

award is great. Now, we need to turn it into sales and profits.”

The company is no stranger to awards, however, with a host of accolades coming thick and fast over the last few years, including wins at the San Francisco World Spirits Competition and being named Irish Distiller of the year by Whisky Magazine earlier this year. In recent days, the largest online whisky blog, ‘Malt Maniacs’ has also selected Cooley as ‘World Distiller of the Year’.

“There is a very specific reason for these results,” notes John.

“Given that we were coming up against a monopolist when we launched Cooley Distillery in 1987, which is now a duopoly, the only tool we had was quality. We hadn’t got a big advertising budget, we hadn’t got distribution and we hadn’t got a recognised name, so we had to compete on quality. Our product range wasn’t and still isn’t mainstream.

We took a conscious decision to launch our range into the premium and super-premium market. That means that we can afford to work with the products we have and to spend time on them.”

Cooley were nominated for European Distiller of the Year on a number of occasions at the IWSC, so it didn’t come as a massive surprise when they won it this year, before going on to win the global title as well, particularly since they had nine gold medals and seven of those were awarded Best In Class.

“That is a tribute we are very proud of,” notes John. “Those seven whiskeys are seen to be amongst the best whiskeys in the world. And the fact that it’s all down to a blind taste test is a huge tribute to us.

The hope is that amongst the trade and amongst whiskey aficionados that our quality products will propel us into the mainstream whiskey market, but that takes time.”

December08Whiskey

“A study has just been released by Merrill Lynch, which shows that in five of the last six recessions, the sin industry, which is tobacco, alcohol and gambling, have outperformed.”

Changing Irish Whiskey Market When Cooley’s products do make the breakthrough to the mainstream whiskey market, it will be a very different place from when they first opened their doors 21 years ago. At that time, world sales of Irish whiskey stood at approximately 2.52.8m cases per year, “of which about 300,000 went into Bailey’s and maybe 40% of the rest went into Irish coffees,” Teeling notes. “So in

terms of a brand, Irish whiskey didn’t really exist.”

The intervening years have brought about a sea-change in Irish whiskey consumption.

Teeling admits that the “focused approach” taken by Irish Distillers Pernod Ricard to the Jameson brand has helped considerably, but, he contends, there are bigger changes afoot.

“There was a general change in tastes in the US around 1999 or 2000, where young men started to drink brown spirits again. They started on bourbon and have moved onto Irish whiskey. That has been the biggest single change in the market for Irish whiskey, the fact that now, a substantial proportion of Irish whiskey drinkers are young. It’s a very different profile than Scotch, and is much more similar to bourbon.”

The facts bear him out. Irish whiskey sales in America have quadrupled from 250,000 cases to 1m, which Teeling describes as “an amazing transformation”. It’s not just the US which is cottoning on to Irish whiskey, however.

“At least as important is the emergence of India, China and Russia, which you couldn’t have predicted when we started Cooley 21 years ago. They are not huge markets for Irish whiskey but they are expected to become so,” he notes. “Prior to the current economic shambles, expectations were for sales to hit around 4.5m cases this year and our belief is that those figures could double by 2012.

So the future is relatively assured, thanks to a general change of tastes, led by bourbon, going through Irish and now reaching Scotch. People are now drinking brown spirits again. That is a generational thing, so it should last for a very long time, and the prospects for Irish whiskey are very good.

You can see that in the performance of Jameson, of Bushmills and Tullamore Dew. The opportunity is great, Irish only amounts to 4% of Scotch sales.”

Global Economic Downturn The fact remains, however, that Irish whiskey is very much a premium product. As such, how will it be affected by the current global economic downturn?

“A study has just been released

by Merrill Lynch, which shows that in five of the last six recessions, the sin industry, which is tobacco, alcohol and gambling, have out-performed,” Teeling insists. “Does that mean that they’re not impacted? Of course not. Does it mean that our class-winning products, which generally retail from €75 to €120 per bottle, will not be hurt? Of course they’ll be hurt. The length and depth of this recession will, I think, slow us down by up to a year and a half. But, we will do better than we otherwise could have expected to.”

The biggest problem for Cooley, according to Teeling, is the credit crunch, which is impacting on their sales to Russia and the Baltic states of Estonia, Latvia and Lithuania, in particular.

41

December08Whiskey

No Seasonal Surge He also explains that the “traditional Christmas surge” didn’t happen this year, with retail groups playing it extremely safe regarding ordering, particularly of own-label whiskeys.

Teeling feels that the current trend, whereby the multiples are using spirits brands as loss-leaders, is hurting the industry.

“It is a crying shame that high quality products are being discounted at Christmas. When you have very good aged whiskeys or single malts being sold at discounted prices, as you do in the UK moreso than Ireland, it defeats the whole purpose of premiumising whiskey. I think that’s very bad for the industry in general.

“It doesn’t add significantly to the number of bottles of whiskey sold, either,” he continues. “If a consumer gets a couple of euro off a bottle of whiskey, that doesn’t mean that they’re going to buy two. So the total amount sold isn’t much different: there might be some variation in the brands that are bought.

These are products that have an inelastic demand, so decreasing the price doesn’t increase the revenue.

So, overall, it’s self-defeating.”

Despite his qualms over the discounting of whiskeys, he’s generally happy with the relationship between Cooley Distillery and Ireland’s retail groups. “They are extremely professional,” he says.

“We don’t expect any favours and we don’t get any favours. It’s a very tough market for all suppliers and we have to compete on equal terms with everyone else. Nobody can afford to carry passengers, particularly in the current climate. In terms of quality, price and packaging, we have to perform.”

Future Predictions So what of the future? In an era where predictions of doom-andgloom seem to be the norm, Teeling is refreshingly optimistic.

“I think the global market for Irish whiskey is assured in the medium term, over the next five or six years,” he enthuses. “2009 could be the most godawful year that we 42

IWSC President, Rafael Guilisasti, Vice Chairman of Wine Company Concha y Toro, and David Hynes, MD, Cooley Distillery, are pictured with the European Distiller of the Year Award.

have experienced in a very long time, but I think that this is a blip in the greater scheme of things. The fact that young people are drinking whiskey; the fact that Indians are drinking whiskey; the fact that Russians are now drinking brown spirits instead of vodka: these are structural changes and they will not be stopped. They may be slowed but they can’t be stopped. Mediumterm, Irish whiskey is in much better shape than it was 20 years ago.”

Teeling’s optimism is not just bluster: Cooley expect this year to be their

“best ever, by a long way” and the company are currently investing €3m into expanding capacity at all their distilleries. Some people would see that as being very brave/foolhardy in the current climate?

“Yes, but people thought we were stupid to start this business 21 years ago,” he laughs. “We believe in the structural trends in America, Russia and India. The fact that we have won all these awards will help us to get into the trade, to get our products onto the shelf. Once we achieve that, the quality will speak for itself.”

“2009 could be the most godawful year that we have experienced in a very long time, but I think that this is a blip in the greater scheme of things... Medium-term, Irish whiskey is in much better shape than it was 20 years ago.”

RN December08Music Use in Shops ●

Do You Need an IMRO Licence?

Any performances of music in retail premises, including use of a radio or CD player, is regarded as public performances under copyright law, and requires an IMRO licence.

The

Irish Music Rights Organisation is a national organisation that administers the performing right in copyright music in Ireland on behalf of its members (songwriters, composers and music publishers) and the members of the international overseas societies that are affiliated to it. IMRO’s function is to collect and distribute royalties arising from public performance of copyright works.

IMRO is also prominently involved in the sponsorship and promotion of new music in Ireland and is continually working on raising awareness of the legal requirements of using music in public. IMRO is a not-for-profit organisation.

In accordance with the Copyright & Related Rights Act 2000, IMRO issues Copyright Music Licenses to

music users such as broadcasters, venues and businesses nationwide. A licence is required for any public performance of copyright music. A ‘public performance’ is defined as a performance taking place outside the domestic circle. Performances of music in retail premises, service outlets, showrooms etc. are regarded as public performances under copyright law. A licence is needed to cover any use of radios, CD players, tape recorders or televisions or any other music performance that occurs on your premises. The requirement of a licence also extends to the use of privately owned radios and CD players in public areas: for example, warehouses, storerooms or canteens.

Music as a Marketing Tool With competition in the retail industry becoming increasingly intensive, customers must be encouraged to select one retail premises over another. This is where the power of music becomes a positive influencing factor.

Music has the tendency to put customers at their ease, thus encouraging them to spend more time in retail outlets. Therefore, the longer they remain in your shop, the more likely

they are to purchase something.

If you are already using music in your shop, you will already greatly appreciate the benefits that can be derived from playing music on your premises. Music, whether it be by means of background music, televisions or live performances, does influence how customers and potential customers view your establishment.

The style and tempo of music you provide does contribute to the overall store image of your retail outlet. Just as it is important to have attractive display fixtures, window displays and appropriate lighting, music too can be used to create a pleasant and appealing ambiance for your customers.

Larger retail outlets have long recognised the influence music can have on shopping patterns. Music with a high tempo can encourage shoppers to move more quickly through a shop, while slower tempo music can have the influence of slowing down customers with the overall benefit of them spending more money in such situations. (Source: Based on research carried out by Milliman, R.E. (1982). Using background music to affect the behaviour of supermarket shoppers. Journal of Marketing.)

43

New African Products to the Market Value Added in Africa helps African businesses bring their products to market in Ireland. We research what finished products are available and which companies are already successfully selling into other European markets.

Recently launched, Value Added In Africa is a new kind of charity.

We seek to reduce poverty in Africa by supporting businesses to grow â&#x20AC;&#x201C; especially processing companies. We also help Irish businesses find more competitive supply routes â&#x20AC;&#x201C; directly from the manufacturer.

We started by researching products available in Ghana and will later expand to other countries in Africa. Developed sectors in Ghana include food processing, furniture (household and garden), garments, natural products such as hand-made soaps, printing, toys and even some industrial products such as a range of high quality paints.

Prepared fruits is one of the most developed sectors in Ghana and Value Added In Africa discovered fresh fruit slices and juices competitively priced in a range of formats. For the top end of the market, we found punnets of fresh fruit slices and freshly squeezed juices that are already being flown daily for sale in other European countries. Longer life fruit products include 100% pure juices with no

additives but with a shelf life of a year available in bottles, PET or sachets - or in bulk.

Other foods include tomato or pepper sauces, spices, honey, nuts, chocolate and many health foods.

Most of the products receive certification from international standards bodies. Many qualify for organic or Fair Trade certification.

All the companies we deal with in Ghana are ready to supply your own label, or produce to your specification.

Sourcing directly from African companies offers Irish businesses an edge. Keep your costs down by sourcing shelfready products directly from African companies. We can introduce you directly to companies operating in your sector, saving you from having to research foreign markets.

Retailers can also assure their customers these products do good. Value Added In Africa vets the African companies to ensure they are responsible businesses, good employers, and benefitting the communities right along the value chain.

www.ValueAddedInAfrica.org

RN December08Music Use in Shops ●

a telephone hold system or in staff canteens etc. Thus, smaller retail establishments will typically be paying less than larger retailers but for as little as a few pence a day, you can select from millions of musical works to enhance the way in which your business operates.

Good Value for Money

Why The Need For An IMRO Licence?

By taking out an IMRO licence, you have instant access to millions of musical works, covering all styles and musical tastes, all of which can be used by you to improve the way in which your business operates.

Musical compositions, just like any other copyrighted material (computer software, books and videos) are the legal property of their creators. Thus, when you use this material in your shop, you must first obtain permission from the copyright owners to do so. The cost and time involved in securing the authority for each and every piece of music that you may use in your shop would be an unaffordable and almost impossible task for you. IMRO offers an easy solution to this problem, however.

IMRO can provide you with a music licence that covers any use of copyrighted music, whether it by means of a television, radio/CD/tape player or live music etc., that may take place on your premises. Signing an IMRO licence means that you can legally use IMRO copyright music in your shop for just one payment per year. This frees you from the trouble and cost of having to secure permission on each piece of music used on your premises.

Where Do Your Licence Fees Go? IMRO functions as a non-profit making organisation and all distributable royalties collected by IMRO are paid directly to the people who compose,

publish and write the music that you are playing in your retail premises.

IMRO also uses a proportion of the royalties collected to help foster and develop both new and established music writers through workshops, seminars and sponsorship of a wide variety of projects throughout the country.

By paying your annual licence fee to IMRO, you are enabling songwriters to continue writing songs that you will ultimately use to improve the way in which your business operates.

By protecting music writers’ rights, they encourage and reinforce the creativity that helps everyone develop and prosper.

How Much Does An IMRO Licence Cost?

In general, the level of royalties due is directly related to size of your retail premises. Your royalty charge is based on the total floor area of your premises in which music is audible. Other tariffs may apply if you are using music in other parts of your premises, e.g. music on

IMRO charges have been negotiated and agreed upon with the Irish Hotels Federation, the Restaurants Association of Ireland and the Irish Dancing and Entertainment Industry Association. IMRO will be happy to advise you about the cost of a licence for your particular business. You must get an IMRO licence before musical performances in public begin and if you contact IMRO before you start using music, your first year royalty charge could be significantly reduced.

IMRO makes it easy for retailers to tap into the power of music with one simple cost-effective licence.

Does it Matter How the Music Is Performed?

The simple answer here is ‘no’. Whether the performance is by means of a record/CD/tape player, television, radio, jukebox, video or live performance, an IMRO licence is still necessary. You might say “but I already have a television licence” or “I’m using my own tapes & CDs”. Possession of a television licence does not cover the public performance of music on your premises. Similarly, when you purchase a tape, record or CD, the price you pay only covers the right to play the music in non-public areas such as your home. Once you play music on your premises, it becomes a public performance of music. Musicians or artists whom you may have engaged or permitted to perform on your premises do not hold an IMRO licence. The responsibility is yours to ensure that your hotel is licensed correctly for any music that may take place.

Additional Questions / Information If you are an existing music user or you intend to use music in your company in the future and you have any additional information requirements, please contact IMRO’s Licensing Department at (O1) 6614844.

45

December08Money

Matters

Surviving a Downturn Carmel Linnane advises retailers on how to survive an economic slow-down, such as the one we are currently experiencing. â&#x20AC;&#x153;When sales slump, it is time to look at what you can control and find ways to cut costs. But before you start doing this, you need to understand where your business is at in terms of incomings and outgoings. Work out the exact volume of your purchases and establish your buying patterns.â&#x20AC;?

46

Retailers

are first in line to feel the pinch when consumer confidence wanes and the family budget is tight. Confidence among small and medium sized Irish companies is at a 20-year low, according to industry analysts. The economic downturn is hitting hard. Customers are increasingly cost-conscious and looking for savings wherever they can find them.

Spending is being curtailed and retail outlets are under pressure.

Surviving a downturn like this takes skill. The business owner/manager must take a long hard look at everything in the business to find places where fat may be trimmed and come up with new ways to nurture the business. People react in different ways to a downturn. Some throw good money after bad trying to buy their way out of their troubles. Others cut and slash at costs and staff levels and end up with a sorry looking ship.

There are exceptions where some companies have made big money by diversifying during a downturn, but they are rare.

Trimming When times are lean, you must tighten the belt but, hopefully, not at the expense of service or quality. You must examine all aspects of the business in

a calculated and thorough way, then start tweaking and trimming where you can, without damaging your service. Concentrate on the core business: if necessary close down non-core activities and reduce costs where there is no obvious value being created.

When sales slump, it is time to look at what you can control and find ways to cut costs. But before you start doing this, you need to understand where your business is at in terms of incomings and outgoings. Work out the exact volume of your purchases and establish your buying patterns. Once you understand the true cost of your annual purchases, you need to track your sales and build as accurate a picture of costs and revenue as you possibly can.

Budget For new businesses particularly, a downturn of this scale can be extremely daunting. Instead of panicking, now is the time to really get to grips with the finances of the company. If things are looking grim, set up a weekly budget sheet and take the time to monitor where the money is going and what returns you are getting on money spent.

If there is less money coming in than going out, you need to take immediate action. There are many ways to

December08Money

Matters

reduce costs but you need to look at the broader picture. For example, assets can become liabilities and those that are not needed can be converted back into cash.

Cost cutting may mean letting some staff go, but if your business needs 10 staff to run it, reducing it to six leads to stress and bad service. If staff levels must be cut, then try to boost productivity by positive means rather than letting morale flag and resentment rise. Find ways to reduce the workload for the remaining staff, and keep them informed of what is going on. Show your appreciation and make them feel involved as much as possible.

in point, where your expensive purchases are suddenly obsolete or require expensive upgrades to stay with the times. In these cases, leasing may be a better option than outright ownership.

You could also consider buying used equipment if it fits the bill. Do whatever it takes to keep the borrowing down.

Increasing profits through cost reduction must be the result of organised planning. The owner/manager must understand the nature of expenses and how expenses interrelate with sales, cost of goods sold, gross profits and net profits. What you are looking for is more efficient use of the funds and to achieve that, you need to have an intimate grasp of fund flows.

from the good times and little or no loans, they can clap themselves on the back. They are in a good position to ride out a downturn. Unfortunately those who just entered the arena or those who, whether through expansion or just bad luck, are heavily in debt with no reserves, need extreme action to survive.

In desperation, credit cards are used as a means of accessing a quick loan. This is fine if it is a very shortterm loan and will be paid back promptly. To use a credit card for a long term loan is not advisable. Credit card debt and personal loans are punitively expensive and costs can mount alarmingly.

Expenses

Loans

Action

Your first line of cost cutting will come largely from variable expenses, and the firm’s profit and loss accounts are a good starting point to locate expenses that can be cut. Many businesses produce an annual profit and loss statement but in troubled times, you should consider having one prepared more frequently, perhaps even once a month. You need up to date information if you are to control expenditure and monitor sales.

From the profit and loss accounts, you can track variable and fixed expenses. Variable expenses are those which fluctuate with the increase or decrease of sales volume. They would include marketing and advertising costs, transport and delivery costs and so on. Fixed expenses are those which stay the same regardless of sales volume. They include wages for permanent employees, rent or loan repayments, utilities costs etc.

For the lucky business owners who have healthy bank balances built up

When it comes to business loans or mortgages, there are options to be considered. If you have large loans to meet and you are having trouble or anticipate trouble ahead, take immediate, preemptive action. Go to your loan providers early: the earlier the better. Financial institutions are nervous enough these days and up front acknowledgement of impending problems is essential if you want to get a positive response. Lay your cards on the table with your credit suppliers and spell out the situation that has occurred, or is likely to occur.

Early warning of likely problems gives all concerned time to assess the situation more thoroughly. There are always alternatives.

For example, if it is hard to meet mortgage repayments, lenders might consider an interest-only period or lengthening the term of the loan.

They will take into account your potential repayment capacity, previous payment history and the equity remaining in the property. There may be a way to negotiate a solution to your problems.

Surviving a downturn is not easy and it takes skill and a fair measure of luck to make it work. A thorough knowledge of the finances of the company helps to steer a way through tough times. There is no exact formula to follow but the more knowledge you glean, the better you are armed to deal with the problems.

Experience Start-ups, in particular, get caught in the trap of thinking they need to buy all their equipment and supplies at once and that everything needs to be new. This is fine in buoyant times but when times are hard, other options should be considered: options such as leasing instead of buying. Where possible, it is best to stay flexible in purchasing decisions. Long-term deals can lock you into something that could become untenable. Technology is a case

“Cost cutting may mean letting some staff go, but if your business needs 10 staff to run it, reducing it to six leads to stress and bad service. If staff levels must be cut, then try to boost productivity by positive means rather than letting morale flag and resentment rise.”

47

RN December08Wine ●

Innovation the Key Adolpho Hurtado, winemaker with Cono Sur, talks RETAIL NEWS through the incredible achievements of this innovative Chilean winery and outlines how the wine industry will change over the coming years.

Cono

Sur is the fastest growing Chilean brand in the Irish market, growing at 48% year on year. It was also the first winery in the world to achieve carbon neutral delivery status. Founded 15 years ago, Cono Sur’s vision is to produce premium, expressive and innovative wines, combining the old world style with the new world expression. Today, it is the biggest producer of Pinot Noir in the world.

Winemaker Adolpho Hurtado has won two winemaker awards in Chile, one from ‘Cronistas Gastronómicos de Chile’ in 2002 and the second from ‘Guía de Vinos 2006’, the most important wine guide in Chile, reviewing all wines in the Chilean market. He has also won awards in Europe, and 48

Adolpho Hurtado, pictured in Cono Sur’s vineyards in Chile.

was the first South American winemaker to be awarded personality of the year from Danish wine publication, Vinbladet, and at the Wines of Chile Innovation Awards in the UK last December, he picked up the Chilean personality of the year award. He talks to RETAIL NEWS about Cono Sur’s exceptional performance in Ireland, its commitment to the environment and its innovative wine-making policy.

How important is the Irish market to Cono Sur? Ireland is very important to us. In fact, Cono Sur is the fastest growing major Chilean brand in Ireland today.

Out of our key markets, Ireland experienced the largest growth in 07/08 and we are sure this is going to continue into next year.

For such a relatively young winery, Cono Sur has achieved tremendous success. Why do you think that is?

Quality and price sets us apart from a lot of wines. Throughout the range, we offer varietals that are very well priced, yet still very much produced to the quality standards that are evident throughout the winery. We are also offering something that is dif-

ferent from the traditional Chilean offering. We’ve simplified the approach and made it easier for consumers. Our marketing campaign is ‘Only For Everyone’ which is really important. Our goal is to break down barriers and produce wines that people don’t find intimidating but enjoyable.

Unusually for a Chilean winery, you have developed a reputation for delivering innovative wine styles, which are not usually associated with the New World. Was this the priority for Cono Sur? Cono Sur doesn’t have the history or family tree that most wineries have and we don’t have the traditions that come with it. As a result, we aren’t bound by rules or specific ways of

What’s In A Name?

CONO Sur means ‘Southern Cone’ and its name refers to its geographic origin, representing wines produced in South America’s southern cone, where on the Western edge lie some of Chile’s most gifted wine valleys. Its logo, a freehand drawing of South America’s silhouette, demonstrates the fresh and innovative representation of the country.

RN December08Wine ●

Cono Sur Back on TV CONO SUR is back on TV screens this month. The brand’s latest TV campaign further demonstrates its commitment to the Irish market and the investment behind the brand.

The ad flicks between a variety of faces before the words, ‘No family trees, No dusty bottles, Just quality wines’ appears on screen, followed by ‘Cono Sur – Only For Everyone’. The ad is designed to break down misconceptions about the wine industry and communicate the innovative and fresh new world thinking at Cono Sur which continues to appeal to every demographic of wine consumer.

“This is a wine that is setting standards in so many areas of winemaking and is one of the most forward thinking brands in the industry,” notes Rosemary Lyster, Marketing Manager, FindlaterGrants. “The ad is typical of the brand in that it is breaking down barriers and re-evaluating how things should be done and I think the Irish consumer respects that.” thinking. We can be innovative and we can do things that haven’t been done before. Our environmental record is completely unique in the industry. We were the first in Chile to produce a sparking wine, the only winery in Santiago to produce a Sauvignon Blanc and the Cono Sur Pinot Noir is one of the top three Pinot Noirs available worldwide.

Being innovative and pushing the boundaries where other wineries can’t has been central to our success.

Was it important to you not to just be another Chilean producer but to stand out from the crowd?

Absolutely. Cono Sur is about new varietals, new techniques and new ways of thinking. We continually like to develop our winery and bring “new news” and excitement to the market.

Cono Sur has always been very pro-active in terms of its environmental policies. Do you feel that enough is being done in general in the wine industry to protect the environment?

We have made it a priority from day one to work towards the environmental policies we have in place, so we were at a distinct advantage. I don’t think the industry as a whole is doing as much as it can but it takes time.

Even for us, we have a long way to go but we are moving in the right direction. We have obtained Carbon

Neutral Delivery Status, offsetting the CO2 we produce with oxygen. 65% of our CO2 was produced because of transportation, but now we are able to offset those levels via renewable energy programs we are involved in. A quarter of our vineyard is certified to organic standards and the same sustainable agriculture philosophy runs throughout the vineyard. We were also the first winery in Chile to achieve 9001 and 14001 ISO certifications.

Why did you feel it important to achieve Carbon Neutral status?

This is something we believe in very strongly. It is a philosophy and attitude that runs throughout the entire company. Wine production is still an agricultural industry. We need to be interested in how our actions affect the weather and the soil, for example, and we need to be working towards a positive outcome rather than a negative one.

Do you see other wine producers going down this route in the future?

Yes, I hope so. Even if producers don’t adapt to this way of thinking voluntarily, I think the world is moving in such a direction that Government will intervene and environmental policies and practices will become the norm.

You have launched a sparkling range during a global downturn: is this a calculated risk?

When we began with the sparkling and even when it was being launched, there were no headlines about a global crisis. It can take several years from planting the vines to getting the first bottle on-shelf, so you have to be optimistic and confident in your decisions. Wine is a long term business and you have to aim to be in a stronger position once you have launched or implemented anything new.

How do you think the global economy will affect the wine industry over the coming year?

I’m not sure anyone will be able to answer that with much certainty but I think it is safe to say that consumption patterns are going to change.

People will continue to drink wine but I think the off trade will do stronger than the on trade. Also, consumers will look for well priced bottles but will still demand quality, which puts Cono Sur in a great position.

A Bit of History Since 1993, Cono Sur has been associated with new, exciting varieties and is the biggest producers of Pinot Noir in the world and committed to Riesling, Gewurztraminer and Viognier. Cono Sur was the first in Chile to introduce a sparkling wine from the austral Bío Bío Valley, also innovating in the combination of varieties, Chardonnay, Pinot Noir and Riesling.

Among the pioneers in developing an organic farming program in Chile, Cono Sur was the first Latin American Winery to receive a double ISO certification 9.001 and 14.001 for quality and environmental policies respectively, and the first winery in the world to achieve Carbon Neutral delivery status.

Cono Sur also uses natural techniques, such as flowers, grass, geese, and insects to prevent and control pests and diseases and has an organic range, symbolised by a bicycle. According to the company, this range carries the spirit of their workers, who pedal their way to and from the Cono Sur vineyards every day.

49

RN

December08On

The Vine

Trends For 2009 Jean Smullen examines what is likely to happen in the Irish wine market throughout 2009, including a consumer concentration on value, with promotions key to generating sales.

The

reality of the Irish market and the gloomy economic condition is that consumers are cutting their spending on wine as they desert the higher price brackets in favour of cheaper wines. To compound this, the Irish budget for 2009 announced on October 14, saw a duty increase on wine of 20%. This is the first time duty on wine has been increased by the Irish Government since 1994 and this is bound to impact on the market.

The new duty rates, which apply since October 15, will have the following impact. Irish Duty changed to €2.46 per bottle, plus VAT at 21%, which is 51.66 cent. However, this rate was only applicable until November 30.

Since December 1, VAT will be charged at the new rate of 21.5%, which means duty per bottle will be €2.46 cent plus VAT at 21.5% Therefore, the revised duty rates for wine will be €2.98 per bottle, which equates to €35.76 per case of 12 bottles.

The Budget comes after a recent slump in wine consumption. The Government’s own figures show that excise receipts from wine fell by 11% in August 2008 compared to the same month last year and by 17% in September. So far this year, overall wine consumption is down 6% and 2008 is likely to see a total fall of over 8%.

Lower Price Points It is likely for 2009 that we will see greater emphasis on wines at lower price points. Promotions will be a key factor in driving sales, and this is likely to take precedence over country of origin, wine style or grape variety.

50

In other words, it is the price that substantial increase of 16.3%, with will dictate the choice. This means Portugal also up by 0.5%. that retailers will have to redefine The same figures show that their range of wines, putting Australia is still leading the way greater emphasis on wines at lowwith 27.2% of the total market and er price points.

Chile in second place with 22%, USA So what is moving out there? follows in third place with 13.1% Sales of Spanish, New Zealand and France is in fourth position and Portuguese wines continue to with 10.2% of the Irish market improve. New Zealand is the share. fastest growing country of origin, So what will be the trend for with Spain also showing strong 2009? New Zealand wines will congrowth. tinue to be very much sought after: Let us take a look at how even though they have higher the market is doing in terms of price points, they have mainvolume market share. Wine tained that level even during Board figures to August 2008 the economic slowdown. show sales of French wines Spanish wine styles are for the same period dropped very much the bridge between by 11.5%, Argentina is down the fruit-forward New World by 21%, South Africa style and the more elegant dropped by 8.9% and USA European style and have by 8.1%. Australian wine good price points, interesting sales showed a very small packaging and new wine decrease of 1.7% and styles. The Spanish continue Germany was down by to innovate, which is driving 0.5%. Italy too dropped their volume sales. by 0.8% during the Portugal too is evolvThe Bend in the River Pinot same period. ing, offering different Grigio from Germany (FindlaterGrants): German wine styles and grape These figures are wines are expected to only a guideline. They varieties, which are perform extremely well in account for 55% of the proving of interest to the 2009. total market for the consumer, tired of the period 07/08 and are only an indicasame old varietials. Chile too, is holdtion of what is happening in terms of ing market share, mainly because of market share. their excellent price/quality ratio.

Chile offers good quality drinking wines at competitive prices.

Country by Country: Germany will be one to watch in Winners & Losers 2009, as the consumer gravitates The country showing the most signifitowards lower alcohol wines. German cant increase in volume market share wines can offer low alcohol and good on the Irish market was New quality. They will concentrate on two Zealand, which was up a whopping key grape varieties, Riesling and 29.8%. In addition, Spain showed a

December08On

The Vine

2009 New Zealand Trade Tasting

Wine News

The 2009 New Zealand Annual Trade Tasting will take place on Tuesday, January 20, 2009, in the SAS Radisson Hotel, Golden Lane, Dublin 8. Trade & Press are invited to taste a comprehensive rage of New Zealand wines, including new vintages, from 2008 from 12:00 noon to 18:00.

Participating wineries for 2009 include: Babich Wines; Bouldevines; Central Otago Pinot Noir; Cloudy Bay ; Craggy Range; Forrest Estate Winery; Framington Wines; Giesen Wines; Highfield Estate; Hunters Wines NZ; Jackson Estate; Kamira; Kim Crawford Wines; Lawson's Dry Hills; Liberty Wines (featuring Tinpot Hut; Ata Rangi; Wild Earth; Delta); Matua Valley Wines; Montana/Stoneleigh; Mount Beautiful; Mount Riely Wines; The Mud House Wine Group; Nobilo Wine Group; Ngatarawa Wines; Omaka Springs Estate; O:TU; Oyster Bay; Pegasus Bay Winery; Prophets Rock Vineyards; Sacred Hill Wines; Saint Claire Estate Wines/Esk Valley; Siefried Estate; Spring Creek Estate; Spy Valley Wines; Staete Landt Vineyard; Villa Maria; Waihopai River Vineyards; Wairapara Hills Wine Estate; Wines from Martinborough (including Gladstone; Matahiwi; Borthwicks; Fairmont ; Joseph Ryan; Mebus;Johner Estate ; Urlar Ashwell); Woolaston Estates; Wither Hills; For more information contact: Jean Smullen. Tel: (01) 2745955. email: jean@jeansmullen.com.

IN 1987, Mary Gaynor became the first Irish graduate of the Wine and Spirit Trust of Great Britain (WSET) Diploma. Since then, 258 Irish students have graduated in the Diploma. To celebrate this, the Wine and Spirit Education Board of Ireland (The Wine Board of Ireland) held a 21st Anniversary party. At this event, the Wine Board of Ireland also conferred this year’s graduates, Ronnie Caraher, Michelle Lawlor, Richard Moran, John O'Dwyer, Lorna Rouse, Jonathan Tonge, Pieter Watson and Anna Zanotto, all of whom have come through this tough third level course to pass their WSET Diploma in 2008.

The Wine Board of Ireland also presented the George O’Malley Tasting Cup to the three students who achieved the highest marks in this year’s Diploma tasting examination, Pieter Watson, Ray Magourty and Gerard WalshKemmis. This cup, which was presented to The Wine Board of Ireland by Maggie McNie MW, is named after the late George O’Malley who, along with Tom Franks, was instrumental in developing professional wine education in Ireland.

For more information about all the wine courses run by the wine board go to http://www.wineboard.com or write to Wine & Spirit Education Board of Ireland, 14 Whitefriars, Peter's Row, Dublin 8. Contact: Dermot Nolan MW. Tel: (01) 475 7580.

Email: dermot@wineboard.ie

Pinot Noir, which are very much in fashion these days.

South Africa have started to win many international wine awards for their blended wines, especially for their white grapes. I think we will see a return of consumer interest in South African wines, as they start to improve their offering.

range of wines and choose more interesting and newer wine styles.

Add value to your wine section by offering special wine events, such as tasting nights that involve a tasting hosted by a visiting winemaker or resident expert. The younger consumer has increasingly developed their depth of wine knowledge and is becoming more aware of the array of wines on offer: they are more likely to look for a quality wine or a grape variety from regions and countries which barely featured on the map 20 years ago.

What Can Retailers Do? So what can retailers do in an attempt to lift sales? Start by offering interestCaliterra, from ing specials, Febvre & Co. Ltd, such as Spanish represents a new wine regions or generation of Chilean wineries, Portuguese expected to grow grape varieties, their share in which will woo Ireland. wine drinkers who are fed up with endless wooded Chardonnay.

Look to stocking a more diverse

New Zealand is growing its share of the Irish market, including the Oyster Bay range from Cassidy Wines.

The challenge is to offer an interesting but approachable wine selection, which has good value, but also offers diversity. There are no prizes for being dull! There are more and more wine drinkers out there who are prepared to part with good money for a decent bottle of wine. If the retailer gets it right, there is no reason why next year should not be profitable, at least in terms of your wine section.

51

December08Shelf

Life

Shelf Life RUGBY stars Bernard Jackman, Jamie Heaslip and Shane Jennings, alongside Assistant Garda Commissioner Eddie Rock, lined out with top model Sarah McGovern to help CocaCola Bottlers Ireland launch the Designated Driver campaign 2008. Celebrating its fifth year in operation, the popular nationwide campaign offers free soft drinks to drivers, providing them with an added incentive to be the designated driver while out on the town this Festive Season. In order to cater for varying consumer preferences, Coca-Cola Bottlers Ireland is making an extensive range of non-alcoholic beverages available free of charge, including Coca-Cola, Diet Coke, Coke Zero, Sprite, Sprite Zero, Fanta, as well as Deep RiverRock and Fruice. A full list of participating licensed premises is available on www.designateddriver.ie.

CONGRATULATIONS to the winners of the fabulous Christmas hampers, courtesy of RETAIL NEWS and Gala Retail Services, currently celebrating their 10th birthday. The winners are Peggy King, from Ballinalee, Co. Longford; Paul McManamon, Charlestown, Co. Mayo; Kathleen Finnegan, Banagher, Co. Offaly; Tara O’Rourke from Coca-Cola Bottlers Ireland; and Michael G. Kenny from Killorglin, Co. Kerry.

SIMPLY Gorgeous: it’s the only way to describe the new range from McCain.

Real roast potatoes, basted in sumptuous goose fat or chunky chips in luxurious beef dripping. Wrapped in an eye-catching silver foil, they are guaranteed to stand out in the frozen food aisle. With more consumers choosing to eat in nowadays, McCain Simply Gorgeous offers them a truly indulgent eating out experience at home.

McCain are supporting the launch with an integrated marketing campaign including press, magazines, radio and in-store activity, to drive awareness and trial of the Simply Gorgeous range.

ONKEN, which is owned by Dr. Oetker, is expanding its best selling Natural Yogurt range with the launch of Natural Smooth.

Made with wholemilk and live bio cultures to deliver a silky texture and mild taste, Onken Natural Smooth is being positioned as the ultimate breakfast ingredient.

The launch of Natural Smooth will be supported with a heavyweight advertising campaign to amplify the versatility, foodie and superiority credentials of Onken’s Natural range.

THE Vard Partnership, one of Ireland’s leading brand design consultants, has recently completed the packaging redesign of Rumblers range of popular Granola and Bio Yogurt snack pots for the UK convenience market. The range, comprising contemporary design cues with appetising imagery, also includes new Superfood and Double Belgian Chocolate varieties. The Rumblers redesign has received an overwhelmingly positive response from both retailers and consumers alike, which has been translated into a 10% increase in sales since the new look pots hit the shelves last month. Rumblers is part of the Ennis Foods group.

MAJOR causes for celebrations at the GWL Group (Galvins Wholesale Ltd), with Wine Spectator, the bible of the wine world, including one of the Frescobaldi wines on its list of Top 100 Wines of the World 2008. Solely distributed by the GWL Group in Ireland, Frescobaldi is available across both the on-trade and off trade (through Carry Out Off Licences) in Ireland. Even bigger news, however, was the announcement that GWL Group has secured the sole distribution rights in Ireland for Baltika Beers, the leader on the Russian lager market, with a share of over 38%.

52

TOPPS Europe Ltd are to launch their Premier League sticker collection, ‘Topps Total Football’ on January 15, 2009. This year, the collection has been completely re-branded as Topps Total Football to reflect the fact that there are more football facts and stats than ever before. Topps will be supporting the campaign with extensive promotions, including a heavyweight TV advertising campaign, cover-mounting with kids’ magazine titles throughout January and February, and national newspaper promotions. An exciting feature this year is the inclusion of 20,000 signed stickers - one player from each Premier League club will be personally signing 1,000 stickers, meaning that a lucky 20,000 collectors will get their hands on an authentic signature from one of the UK’s top footballers.

TWO Belgian chocolate makers, Daskalidès and Chocolaterie Smet, claim to have created the world’s first tooth-friendly chocolate products. The new tooth-friendly chocolate has been bestowed the prestigious ‘Happy Tooth’ label from Toothfriendly International, a non-profit organisation dedicated to improving dental health. The secret of the new chocolate lies in its special production process and composition. Milk powder, for instance, is replaced by milk proteins and sugar by isomaltulose, a natural sugar which can be found in small concentrations in honey and sugar cane.

We see it all around us, a constantly evolving consumer, an increasingly dynamic retail environment and increased prosperity. How can you be a part of it?

Mace are happy to announce the shop of the future. A totally new shop designed to respond to consumer needs and guaranteed to be a winner with todayâ&#x20AC;&#x2122;s demanding shopper. From changeable window graphics to clutter-free counters for greater access, from a new deli to a customer services centre, Mace have thought of everything.

Early in the morning is a good time to make a great decision, so pour the coffee, wake up to the smell of success and get one of Ireland's finest retail packages working for you now. And into the future.

THE NEW LOOK

NO COMPROMISE