December 2009
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December09Contents
■ inside view
Season’s Greetings The end of 2009 is almost upon us and I don’t think there’ll be many retailers who will be sorry to see the back of one of the toughest years in recent memory. Ireland has spent over 12 months in recession and rarely a week went by without hearing of more closures and job losses. For the retail trade, margins were squeezed continuously as consumers increasingly focused on cutting costs in every aspect of their lives, including grocery shopping. That said, Ireland’s retailers adapted remarkably quickly to the new economic environment, responding to consumer demands with increased value offers and larger own label ranges across the entire grocery spectrum. The recent Budget changes, where the Government decided to reduce the VAT rate and the levels of excise duties on alcohol are to be welcomed, as they will hopefully go some way to arresting the continued haemorrhaging of Irish consumers across the border, where they could take advantage of lower excise duties to stock up on alcohol (and other grocery products while they were there). In this issue, we look back over 2009, with a special eight-page review of the year in grocery (Page 24-32). We look at the trends likely to shape the market over the course of the next 12 months in wine (Page 18) and food (Page 20), while David Gleeson, Corporate Recovery Partner with Russell Brennan Keane, advises on how to survive the coming year in terms of cash management (Page 42). Hopefully, the festive season will bring a welcome seasonal sales surge for all in the FMCG market here in Ireland and that 2010 will see Ireland start to emerge from recession once again. Finally, let me take this opportunity to thank all our readers and advertisers for their continued support. Wishing you all a very Merry Christmas and a prosperous New Year. “Over 53 years serving the Irish Kathleen Belton, Editorial & Marketing Director
grocery trade.”
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Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com Editor: John Walshe
johnwalshe@tarapublishingco.com
Chief News Reporter: Pavel Barter
Wine Correspondent: Jean Smullen
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December09Contents
Contents December 2009
News 4Upward Only Rent
Shop Profile 16Kavanagh’s SuperValu
Reviews Banned; BWG Foods Appoint New Managing Director.
in Dungloe, Co. Donegal, was recently named overall National Hygiene & Food Safety winner at the 41st National Quality and Excellence Awards
5 Retail Theft Worsening; Retailers Under Fire for Shopping Outside State.
36
Finance 42When it comes to your business, survival is all about cash, according to David Gleeson, Corporate Recovery Partner with Russell Brennan Keane.
Shelf Life 44All the latest news and
On The Vine 18Jean Smullen looks at
gossip from the trade.
the trends likely to shape Ireland’s wine sector throughout 2010.
The Year in Review 24A month-by-month guide to the stories that made the headlines throughout 2009.
5 6MEP Calls for Supplier Equality; REI Slams Current Wage Agreements.
Newsagency 32Newspread’s new IT system makes the retailer’s job much easier when it comes to managing this time-consuming category.
7Shops Still Selling Cigarettes to Minors; NCA Survey on Personal Care; Non-Food Sales to Rise?
18 Trends for 2010 20What will be the top ten
7
trends in food and drink over the course of 2010?
Forecourt Focus 40The Costcutter forecourt store in Cullies, Co. Cavan, opened in 2007 and has since taken advantage of the large volumes of potential trade in the area.
44 Regulars 8 Industry News Sectoral Reports 34 Music Use in Shops 36 Breakfast Time
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December09News
Upward Only Rent Reviews Banned IN a move designed to assist retailers struggling to meet rising costs amidst recession, the Minister for Justice, Equality and Law Reform, Dermot Ahern TD has banned “upward only” rent clauses. The move occurred after lobbying by retail groups such as Retail Excellence Ireland (REI) and Retail Ireland. David Fitzsimons, REI Chief Executive Office, told RETAIL NEWS the REI began calling for the abolishment of upward only agreements around 18 months ago, alongside 60 or 70 national retailers. “This will provide a more liquid lease market in terms of people’s willingness to sign up to leases,” said Fitzsimons. “It doesn’t mean they’re David Fitzsimons, CEO of Retail Excellence signing their Ireland. life away. We’re the second last jurisdiction in civilised society to have it. Everybody else has turnover-based rent agreements or consumer price index linked agreements, in which rent fluctuates according to the market. Ireland and the UK were the only ones who had this anti-competitive process.” Property interest groups, however, greeted the move with dissent. The Irish Auctioneers and Valuers
Institute (IAVI) said the ban was implemented without working knowledge of the market and will lead to more short-term leases. Fitzsimons countered that shortterm leases are to be welcomed. “They are pro-enterprise as they allow people to sign up to something without committing the next 25 years of their life. I don’t know of any other jurisdiction in the world where the investor insists on such a guarantee. It’s an absolute joke: and now for these people to start crying into their bank balances about the abolishment of upward only rents... It was untenable and uncompetitive. It’s an absolute disgrace for rents to be forced to go up every five years, based upon falsely-inflated market rates.” The ban on upward only rents will only affect new leases, though, which both factions were quick to criticise. Commercial property development groups said it will create a two-tier property market, while retailers believe it will be years before the ban’s effects are felt. “It’s important not to get too carried away by it because it doesn’t affect existing leases,” said Retail Ireland Director, Torlach Denihan. “For many
years, property here was a seller’s market, whereas now it’s a buyers market. The ban is useful, but it will only pay off several years down the road, when the economy gets back to an even keel.” David Fitzsimons said the decision will have no short-term effect on delivering lower prices to consumers. REI are now seeking retrospective legislation to stop rent increases in the marketplace until growth returns. The Minster’s ban, as part of section 132 of the Land and Conveyancing Law Reform Act, comes into effect on Torlach Denihan, February 28, Director of Retail 2010. Ireland.
BWG Foods Appoint New Managing Director BWG Group has announced the appointment of Willie O’Byrne to the position of Managing Director of BWG Foods. In his new role, O’Byrne will be responsible for all BWG Foods retail and wholesale activities in Ireland, overseeing the management of the SPAR, EUROSPAR, Mace, Value Centre, XL and BWG Foodservice brands. “The appointment of Willie is a significant development for both BWG and our customers,” noted Leo Crawford, Group Chief Executive, BWG Group, “Willie has an in-depth knowledge of the retail sector and will provide the leader4
ship needed to further develop the BWG brands in the local marketplace.” Willie O’Byrne has been Managing Director of Mace since September 2008, overseeing the successful integration programme following BWG’s acquisition of Mangan’s in mid-2008. Peter Kealy, formerly BWG Retail Managing Director, will remain involved with BWG on an advisory and consultancy basis. “I would like to express my gratitude to Peter for his commitment and contribution to the success of the business for the past 26 years,” noted Leo Crawford. “I am delighted that he
has agreed to remain with the business in a consultancy capacity and will work closely with both management and retailers in the years ahead.”
December09News
Retail Theft Worsening SHOPLIFTING has worsened since the onset of the recession, with an increase in calls from affected retailers to the Irish Small and Medium Enterprises (ISME) helpline. Mark Fielding, ISME Chief Executive, told RETAIL NEWS that while theft of high value items has always been common, shoplifters are now taking anything they can get their hands on. Convenience stores and smaller shops are now experiencing a level of shoplifting they may not have in the past. In the approach to Christmas, with an increase in the number of shoppers and part-time inexperienced or untrained staff, shoplifters are par-
Mark Fielding, ISME Chief Executive.
ticularly prevalent. ISME also sees a correlation between shoplifting and the recession. “It’s not that people who have less money are shoplifting: the people who have less money are in the market for buying stuff from shoplifters,” he said. “This is 100% profit for them, so anything they get is a bonus. Even food items are being pinched now.” Some retailers have made moves to combat the theft of meat products. Tesco have introduced electronic tags, on a trial basis, in a few of their Dublin stores, while M&S have tags in three Dublin stores and are considering implementing the system across their entire store network. Although tagging technology for meat products is still in its early days - Superquinn and SuperValu said they were not going to introduce tags Fielding believes the trend will take off
when technology improves and the price of tagging reduces. “It’s going to happen sooner or later,” he said. “Different shops will have different limits: anything under X euros need not be tagged. At the moment, in a lot of shops, higher value products are tagged as a matter of course. In low budget items, it is hardly worth it, but as the price of these tags reduces, they’ll become more popular. Of course, it doesn’t stop the people going in with their shopping bags lined with tinfoil and all the other usual subterfuge.”
Retailers Under Fire for Shopping Outside State RGDATA are at loggerheads with the Jacob Fruitfield Food Group, after the manufacturers issued legal threats to a number of retailers who have been sourcing Jacobs products for lower prices from other EU countries. According to Jacobs, retailers who buy these foodstuffs (biscuits, crackers, jams and sauces etc) are infringing upon their trademark licence. Tara Buckley, RGDATA Director General, told RETAIL NEWS some retailers who received the letters have being doing business with Jacob Fruitfield (or Irish Biscuits as they were formerly known) for 40 years or more. At the time of press, Buckley had conducted a meeting with the Jacob Fruitfield Chief Executive, Michael Carey, who vowed to outline his grievances in writing, and wrote to the Oireachtas Committee
Tara Buckley, RGDATA Director General.
on Enterprise, Trade and Employment regarding the matter. But is there a dichotomy between upholding the right of retailer to shop
outside the state, and criticising consumers who shop in Northern Ireland? “The fundamental point we’re trying to make is that these products are all made outside the state,” said Buckley. “Why should they be a third more expensive in Ireland than elsewhere? Consumers can see that the biscuits are more expensive than in Spain or the UK. They claim the retailer is ripping them off.” Buckley used a case in point: a tin of Jacobs biscuits that might sell for €10.99 in an overseas store could cost the retailer €18.49 at wholesale in Ireland. “We understand prices are higher here because of the high cost of doing business, but if a supplier is shipping all their production costs out of the country and benefitting from cheaper prices, we think they should be passed onto consumers,” she concluded. 5
December09News
MEP Calls for Supplier Equality ONE of Ireland’s leading MEPs, Mairead McGuinness is calling for the European Commission to look into supermarket buying practices and has criticised retailer pressure on the supplier sector. In an interview with RETAIL NEWS, McGuinness said that while Ireland has been reluctant to actively address the issue, the European Commission DG Agriculture (DG Agri) has been more sympathetic. The problem, she said, is pan-European. “The UK has been talking about this for a long time, and eventually came up with a proposal for an ombudsman, which the supermarkets don’t want,” she said. “At least it is recognition that something needs doing.” McGuinness added that demands are being made for more ethics and standards in the relationships between retailers and suppliers across Europe. “If we had ethics and standards across society, we wouldn’t have had a banking crisis,” she said. “Maybe now is a good time to talk about ethics and standards in all areas of business. I never get a call from a major supermarket
because they’re under pressure. Never. I get many calls from people selling into supermarkets and I’ve got more of them in the last year than I had previously. That tells me that there is an imbalance of power.”
Ireland East MEP, Mairead McGuinness.
McGuinness said some suppliers are “terrified” of setting out their complaints or attending a hearing in the European Parliament: “It’s about the basics of someone phoning you on a Friday and
saying, ‘We want your produce at half price on Monday’. Because you have no other outlet, you either put up or shut up, even though it is your livelihood that is being put under pressure. That is about ethics and standards. It’s about fairness in the food chain.” The MEP believes society is not rewarding farmers for their work in areas of public policy, such as water management, climate change, environmental protection, animal welfare. There is, of course, a grey area between healthy competition and unfair practices, but she said the pursuit of competition policy could ultimately be harmful for consumers and jobs. “As politicians, if we get frequent calls from individuals who have no power base - they may belong to organisations but they are in fact powerless then it strikes me we can’t ignore those calls,” she concluded. “If you are a supplier and something is demanded of you that really puts you under pressure, there is no negotiation. At least we will make the retail sector realise there is a political and a public interest in this.”
REI Slams Current Wage Agreements WITHOUT a realignment of wage agreements, Ireland’s retail sector risks becoming a self-service industry, David Fitzsimons of Retail Excellence Ireland (REI), has told RETAIL NEWS. Fitzsimons stated the case of Topaz, who are trialling a new service whereby the customer conducts their purchase interactions without assistance. “Retailers would be willing to revert to a full service model if wage cost was modified,” he said. “They will go to a self-service model, if it isn’t modified. There’s an opportunity cost of many tens of thousands of jobs that will be created, give customers what they want, and with better service, if we could develop and deliver a tenable labour cost structure.” Fitzsimons’s call came on the back of new REI research, encompassing 219 REI members, that suggests nine out of 10 retail6
ers cut employee pay over the last 18 months. 30,000 retail jobs could go in the next 12 months, said Fitzsimons, who welcomed Mary Coughlan’s decision to open the €250m Employment Subsidy Scheme to the retail sector. “It’s a good system because the majority of fat has gone out of the system at this stage,” he said. “Every business in this country has carried a bit of fat over the last number of years through good times. Redundancy and rationalisation programmes, introduced to date, have cut out a lot of that excess cost. There’s no point any longer in subsidising a job that’s simply untenable. There is a need to underwrite jobs that are marginal and could be retained into the long-term future with temporary assistance.” The REI predicted the retail sector will apply to fund 21,000
jobs under the subsidy. Funding 21,000 jobs in retail will cost the Exchequer around €191m. Is it really worth it? “Yes,” said Fitzsimons. “On the basis it will retain jobs into the long-term, keep some businesses alive that otherwise would fail, and it’s far less than Mary Hanafin will have to pay if these people were made redundant and hit the dole queues.”
December09News
Shops Still Selling Cigarettes to Minors NEW research published by the Office of Tobacco Control (OTC) shows that children have an unacceptably high chance of purchasing cigarettes. The National Tobacco Retail Audit – 2009 Monitoring Report showed that the percentage of retailers refusing to sell cigarettes to under 18 year olds has increased by eight points to 68%. This compares to a 60% refusal rate in 2008 and 52% in 2007. However, this still means that 32% of minors were still able to access cigarettes in retail outlets. The OTC commissioned TNSmrbi to carry out the audit in late July and August 2009. Among the key findings were: 94% of 14 year olds, 88% of 15 year olds, 61% of 16 year olds and 52% of 17 year olds were refused cigarettes; An increase in compliance was recorded across all store types with the exception of groups. Multiples were most compliant with an 82% refusal rate; 31% of all minors were asked their age when attempting to purchase cigarettes in a retail outlet, up one point on 2008; 61% of minors were asked for ID when attempting to purchase cigarettes in a retail outlet: this is a seven point increase on the 2008 figure. However, 39% of minors were not asked for any form of ID when attempting to purchase cigarettes.
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The correlation between the willingness of retailers to ask for ID and their refusal to sell is clear. 97% of minors who were asked for ID in retail outlets were refused the sale. “While we recognise that compliance is improving with relation to sales to under 18 year olds, there is still massive scope for improvement,” commented John Douglas, Mandate General Secretary, on the Report’s findings. “Mandate is calling on all retail employers to ensure their staff members are fully informed of tobacco legislation and that a stronger policy of requesting identification is enforced.” The Report also measured compliance with the ban on display of tobacco products and tobacco advertising in retail premises, and found that 98% of stores are compliant with the new legislation regarding the display of cigarette advertising in-store, while 97% of stores are complying with the new legislation regarding the display of cigarettes for sale in-store.
NCA Survey on Personal Care A RECENT survey carried out by National Consumer Agency on the cost of personal care goods and over the counter medicines has revealed price differences of up to 161.6% between retailers. The NCA surveyed 117 products sold across eight leading pharmacy groups, four independent pharmacies and the four largest supermarkets. “There are massive price differences on personal care and over the counter medicines, depending on where you buy them,” noted Ann Fitzgerald, Chief Executive of the NCA. “While, as you might expect, the supermarkets are generally cheaper, it is interesting to note that independent pharmacies aren’t always the most expensive and overall perform well in cost comparisons with pharmacy chains.” She pointed out that there are also huge disparities in supermarket pricing on items in this category: “Our survey of the four largest supermarket chains revealed a difference of over 18% between the cheapest and dearest retailer on a basket of 25 products.” In the supermarket comparison, a basket of 25 common items was surveyed across Tesco, Dunnes Stores, Superquinn and SuperValu. The cost of this basket was cheapest in Tesco (€80.85) and dearest in Superquinn (€95.65).
Non-Food Sales to Rise? THE sale of non-food items could rise by 40% in supermarkets over the next five years in the UK, according to a report by the IGD. Sales will rise £16.2bn (€17.93bn) in 2014, up from £11.6bn (€12.8bn), said the report, which pinpointed products such as toys, DVDs, and fitness equipment. But while Ireland has a model for a multi-faceted retail approach - like Dunnes Stores,
which specialises in clothing and other non-food items - Torlach Denihan, Retail Ireland Director, does not believe the trend will take off in Ireland. “We’ve got retail planning guidelines,” he said. “That puts a cap on the food space. Secondly, the Irish economy is undergoing such major challenges. I don’t see food retailers selling washing machines and fridges, but there
will be some diversification. People will be doing stuff online, cataloguing, and using their brands to sell other things. But the market is contracting at the moment and I don’t see many people building new retail outlets over the next three to five years. Therefore, if supermarkets wanted to get into a non-food area, they would need a lot more space and I just don’t see that happening.” 7
December09Industry
News
SuperValu To Sell 95,000 Irish Turkeys This Christmas SUPERVALU is expecting retail sales of over €4m of Irish turkeys this Christmas. This represents 95,000 turkeys, which will be sold in the run up to December 25. All turkeys are provided by two Monaghan based producers, Grove Turkeys Ltd and IGWT Poultry Services Ltd. SuperValu has a policy of sourcing and selling only 100% Irish meat and poultry, which ensures superior quality and farm to fork traceability. This Christmas, all SuperValu fresh turkeys carry the Bord Bia Quality Assurance logo, a further endorsement to SuperValu customers that the turkey has been produced to the highest of standards, which are regularly checked both by the farmer and by independent auditors. Jahrea O’Hara and Matthew Scott are pictured with one of the turkeys.
Tesco Sponsors Ladies Football
M&S Staff Celebrate 30 Years in Ireland
TESCO Ireland has been unveiled as the new sponsor of the Ladies All Ireland Club Football Championships. Tesco becomes the title sponsor of the national club competition across all three grades, Senior, Intermediate and Junior, in a sponsorship deal which runs from 2009 to 2011. “We are delighted to team up with Ladies Football. As a sponsorship, it is an ideal fit for us, embracing the things that are important to our business, such as community participation, promoting healthy lifestyles and engaging with our customers. Our network of stores across the country will provide an ideal backdrop for promoting the game at grassroots level,” stated Kenny Jacobs, Marketing Director, Tesco Ireland, who is pictured with Ladies Gaelic Football stars Mary Nevin, Dublin, and Rena Buckley, Cork.
MARKS & Spencer opened its first store in the Republic of Ireland in Mary Street, Dublin on November 13, 1979. Pictured at the 30th birthday celebrations recently, welcoming customers into the Mary Street store were: Steve Rowe, Director of Retail, M&S; Paula Archibald & Helen Risbin (in her original uniform) who have worked in M&S since it opened; and Jonathan Smith, Head of Ireland, M&S. “We’re extremely proud of our Irish business and would like to thank all of our employees for their enthusiasm and dedication over the last three decades and of course, our customers for their unwavering support,” noted Steve Rowe, Director of Retail, M&S.
A Winning Team MACE and WEEE Ireland, the Irish compliance scheme for electrical and battery recycling, recently presented Special Olympics Ireland with a cheque for €50,000. The money was raised through the sale of WEEE Ireland’s special reusable shopping bag in MACE stores nationwide. “As a community based retail group, we were delighted to work in partnership with WEEE Ireland to support Special Olympics with this fantastic initiative. MACE Retailers and local customers pulled together to raise €50,000, which is a great achievement in the current economic climate,” noted Mace MD Willie O’Byrne, pictured (centre) with: (l-r): Special Olympics athlete Paula Carroll, Leo Donovan CEO, WEEE Ireland; Matt English, CEO, Special Olympics Ireland; and Special Olympics athlete Claire Adams.
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Costcutter Lights Up Festive Season THIS Christmas, Costcutter stores across Ireland hope to light up the lives of sick children with their latest fundraising initiative. A specially-designed festive candle is on sale in all Costcutter stores across Ireland at the retail price of €10, with €5 from the sale of each candle going to Our Lady’s Children’s Hospital in Crumlin. The designer candle has a wonderful ‘spice cider’ scent and comes gift-wrapped in a luxury candle box that makes the perfect Christmas gift. Costcutter and its parent group in Ireland, the Barry Group, has proudly supported Our Lady’s Hospital Crumlin since 2007 and has raised over €200,000 in that time. The promotion will be supported by in-store POS and on local and national radio throughout the Christmas period.
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December09Industry
News
Kavanagh’s SuperValu Scoops Top Hygiene Award KAVANAGH’S SuperValu, Dungloe, Co. Donegal, was announced as the overall National Hygiene & Food Safety Winner at the 41st National Quality and Excellence Awards hosted by the Excellence Ireland Quality Association (EIQA). The supermarket topped the list of more than 3,000 organisations audited nationwide and also secured the Quality Mark Group Retailer and Quality Mark Retail Award for the supermarket’s commitment in providing excellence in food safety and hygiene systems.
The team at SuperValu Dungloe celebrate winning the overall National Hygiene and Food Safety Award with store manager Liam McShea.
Flahavans Named Exporter of the Year E. Flahavan and Sons Limited scooped the Irish Exporters Association’s overall Exporter of the Year Award 2009 at the annual Export Industry Awards dinner at the RDS Concert Hall in Dublin recently. An Taoiseach Brian Cowen TD was guest speaker at the ceremony and presented the awards. The judging panel was particularly impressed with Flahavans’ continued strong focus on research and its ability to identify customer trends in their markets. Pictured at the Awards Ceremony are (l-r): John Coffey. Operations Director; Mary Flahavan, Director; John Flahavan, MD; and Margie Walsh, National Accounts Manager.
Guinness On the Ball PICTURED at the Guinness Area 22 Supporters Event which took place in Ballsbridge ahead of the Guinness Series encounter between Ireland and Fiji recently are past and present stars of Irish rugby (l-r): Girvan Dempsey, Rory Best and Tommy Bowe, who took part in a Q&A with fans in the bespoke ‘black and white’ marquee situated behind the Horseshow House bar. 10
Another SuperValu to top the polls was Riordan’s SuperValu in Fermoy, Co. Cork, who won the National Retail Q Mark for Hygiene and Food Safety, a real testament to the store’s commitment to providing the highest possible hygiene standards and food safety measures for its consumers. “We are delighted with this achievement; it acknowledges and pays tribute to the team at SuperValu Dungloe, the Kavanagh Group and SuperValu Fermoy for their commitment to making their stores the best in the country,” noted Donal Horgan Michael Riordan, Riordan’s Managing Director, SuperValu, Fermoy, Co. Cork, is SuperValu. “These pictured receiving the 2009 Retail awards demonstrate Q Mark Award for Hygiene and to consumers that Food Safety from Irene Collins, SuperValu stores are in a CEO, Excellence Ireland Quality Association. league of their own.”
Cooley Named European Distiller of the Year COOLEY Distillery has been named European Distiller of the Year for the second year running at the 2009 International Wine and Spirit Competition Awards. Indeed, Cooley Distillery won a record 10 gold medals and nine Best in Class awards, with Kilbeggan 15-year-old collecting the prestigious Brown Forman Trophy for Worldwide Whiskey of the Year. “To win one European Distiller of the Year award is a fantastic achievement; to win two back to back is unprecedented,” enthuses Jack Teeling, Sales & Marketing Director. “This award is testament to the innovation and dedication of the entire Cooley staff.”
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December09Industry
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€3m SuperValu Opens in Loughrea McINERNEY’S SuperValu in Loughrea, Co. Galway, has announced the opening of its new 21,500 square feet store. The new flagship store, which is part of SuperValu’s sustainability strategy, incorporates a suite of innovative technologies that will reduce greenhouse emissions by 30%. SuperValu has announced that it aims to achieve a reduction of 30% in energy consumption in all new stores by 2012. Donal Horgan, Managing Director, SuperValu, described the new store as “a milestone in our ongoing energy reduction programme and cements our place at the forefront of the sustainability agenda”. Store owner Michael McInerney is pictured outside the new store with his father Gerard, who was the previous owner of SuperValu Loughrea.
Double Gold for Tipperary TIPPERARY Natural Mineral Water has scooped two gold medals at the British Bottlers Institute (BBI) Awards in London. Tipperary’s Still Natural Mineral Water won a Gold Medal in Class A, while their sparkling variant took a Gold in Class B. “We are proud once again, as a family owned company, to accept two more Gold Medals and we will continue to be active in producing a quality natural product at our source in Borrisoleigh, Co. Tipperary,” stated Marie Cooney, Director. Pictured at the Awards Ceremony are (l-r): Colin Barker, National Chairman BBI; Niamh Farrell, Tipperary Water Brand Manager; Peter Cooney, G e n e r a l Manager, Tipperary Water (Cooler Division); and Ed Binstead, President, BBI.
Centra Shines in Off Licence Awards FOUR Centra Stores are currently celebrating their recent achievements at the Irish Distillers Pernod Richard Off Licence and Wine Store of the Year Awards. Ryan’s Centra, Raheen, Limerick, scooped the Off Licence Award and Herlihy’s Centra, Bishopstown, Cork, won the Wine Store of the Year Award in the Provincial Supermarket and Community Market Category. Whelan’s Centra, Boghall Road, Bray, went on to win the Off Licence of the Year and Reidy’s Centra, Foynes, Co. Limerick, scooped the Wine Store of the Year Award in the Community Convenience and City Centre Convenience Category. “It is a tremendous achievement for stores to receive these national awards,” noted Donal Horgan, Managing Director, Musgrave Retail Partners Ireland. “They are an endorsement of the high standards that Centra stores maintain in their Off Licence and Wine Departments. To consistently maintain such high standards takes an enormous amount of hard work and is indeed an endorsement to the commitment of the team and the quality of work and systems put in place to ensure their store is the best in the country.” Pictured receiving their Wine Store of the Year Award in the Provincial Supermarket and Community Market Category are Brian and Leonora Herlihy, Centra Bishopstown, with Patrick Magee, Irish Distillers (left) and Brendan Macken, Musgrave Retail Partners Ireland (right).
Lidl Has the Fit Factor
Lynx Movember Campaign
THE Irish Heart Foundation, Ireland’s national heart and stroke charity, and Lidl are launching the Lidl Fit Factor for 3rd and 4th class students in primary schools across Ireland with the aim of educating them about the benefits of leading a healthy and active lifestyle. The Lidl Fit Factor is a fun, yet educational programme, which has been developed in accordance with the Social, Personal & Health Education (SPHE) curriculum. Participating schools are in with a chance to win sports equipment vouchers from a total prize fund of €15,000. Leinster and Ireland star Jonathan Sexton is pictured with children from St Olaf’s National School, Dundrum, at the launch. See www. fitfactor.ie for more.
THE illustrious ‘Lynx Minxes’, Louise Kavanagh, Georgia Salpa and Nadia Forde, stepped into their legendary black bikinis to announce Lynx’s partnership with Movember, the global moustache-growing charity that raises awareness for men’s health. Lynx’s ‘Spray Mo’ Get Mo’ campaign was created for Movember 2009 and aims to raise over €900,000 for Action Prostate Cancer, an initiative of the Irish Cancer Society. The Lynx Minxes are pictured with Gavin Kane, National Accounts Manager, at the launch.
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‘Since I joined Daybreak my store has gone from strength to strength. The support I receive from the Musgrave team is second to none.’ Stephen Clayton, Daybreak Kilcullen
‘Open up to better profits’ Are you looking to improve the profitability of your store? If so, then Daybreak is the smart choice. Here are five good reasons to choose Daybreak: Real Value for Money As part of the Musgrave Group, we will enhance your sales and your margins with our competitive pricing and deep cut promotions. A fresh look at ‘Food to go’ Our new food solutions will drive your profitability.
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December09Industry
News
SuperValu Celebrate A Taste of Christmas CONSUMERS had the chance to embrace the spirit of Christmas, while tasting culinary treats from Ireland’s leading artisan and local food producers, at Barry Collins’ SuperValu’s ‘A Taste of Christmas’ Food & Wine Fair recently. There to demonstrate the very best of creative seasonal cooking was well known artisan and family food producer, Avril Allshire of Rosscarbery Recipes and Love Irish Food, who provided a cookery demonstration on how to prepare an ‘Alternative Christmas dinner’, while a variety of artisan food producers from West Cork displayed the best of local produce, including Hodgins Sausages, Carrigaline Cheese, Shellfish De la Mer, Moyle salads and Mrs Birds Brown Bread. David Collins and Laura O’Donovan, from Barry Collins SuperValu are pictured with Santa.
Gourmet Garden Herbs & Spices
easyFairs Acquire Leading Trade Shows
WITH more people than ever before trying out new flavours when cooking and becoming more global in their tastes, Australian company, Gourmet Garden has launched a new range of herb and spice fresh blends that reflect the four most popular flavours in the world. The Gourmet Garden ‘Fresh Blends’ range offers four mouth-watering combinations of fresh herbs and spices in a tube, with a choice of Indian, Thai, Moroccan and Mediterranean flavours. Pictured at the launch of the Gourmet Garden ‘Fresh Blends’ range of Herbs and Spices are: Aridja Ngadi – Moroccan; Dervla Louli – Mediterranean; James Barrett, Gourmet Garden; Samantha Gomes – Indian; and Serena Gao – Thai.
TWO of Ireland’s leading food and drinks trade shows, SHOP in Dublin and IFEX in Belfast, have been acquired by easyFairs, the leading organiser of time & cost-effective trade shows, from the Dublin-based exhibition organisers Expo Events and Mercury Event Management. “This acquisition underlines the easyFairs Group’s commitment to the Irish trade shows market,” said Matt Benyon, Managing Director easyFairs United Kingdom & Ireland (pictured). “It also strengthens our international portfolio for the food, drink, hospitality & retail industries.” easyFairs® IFEX takes place from March 23-25, 2010, in Belfast, while easyFairs® SHOP takes place from September 27-29, 2010, in Dublin.
National Lottery Launches Christmas Games THE National Lottery has launched its exciting Christmas season of prize draws and Scratch Card games, offering players plenty of Christmas cheer and opportunities to win big prizes. The jam-packed yuletide schedule includes their biggest ever Christmas Millionaire Raffle Game, with three top prizes of €1m, as well as a selection of Scratch Cards, a celebrity edition of popular gameshow Winning Streak, Extra Draws and Lotto jackpot prize top-ups to celebrate the season. The National Lottery Scratch Cards are a great small gift idea. There are currently 12 different Scratch Cards on sale in National Lottery agent stores, including the Christmas themed Quarter Million Cash, Hampers & Roses and Sherlock Holmes, the latter created to coincide with the release of the Sherlock Holmes movie on December 26. Pictured at the launch are Conor Kavanagh, RTE Radio 1; Dermot Griffin, Chief Executive, National Lottery; and Frank Dillon, Today FM. 14
New Artisan Listings at Superquinn SUPERQUINN has listed four new regional artisan suppliers in its stores, following its highly successful Artisans Festival recently. They are Burren Smokehouse of Co. Clare, Glenilen Farm of Co. Cork, Surf Seeds of Co. Leitrim and Co. Dublin, and Marine Harvest of Co. Donegal. During the festival, Superquinn opened its doors to give small artisan producers exposure to trading within a multiple retailer, while also showcasing their innovative products to 800,000 shoppers over a two-week period. Pictured are Birgitta Curtin of Burren Smokehouse, Alan Kingston of Glenilen Farm, Tim Rooney of Surf Seeds and Eve-Anne McCarron of Marine Harvest.
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December09Shop
Profile
Award Winners in Dungloe This month RETAIL NEWS travelled to Dungloe in County Donegal to visit the award-winning Kavanagh’s SuperValu. Minister Mary Hanafin TD is pictured presenting the National Hygiene and Food Safety Award to Noel Kavanagh and store manager Liam McShea at the Excellence Ireland Quality Awards. Also included is Irene Collins, CEO, Excellence Ireland Quality Association.
Kavanagh’s
SuperValu in Dungloe, Co. Donegal, was recently named overall National Hygiene & Food Safety winner at the 41st National Quality and Excellence Awards hosted by the Excellence Ireland Quality Association, where Mary Hanafin TD, Minister for Social and Family Affairs, presented the prestigious award to store owner Noel Kavanagh and store manager Liam McShea. The Dungloe SuperValu topped the list of more than 3,000 organisations audited nationwide, but that’s not the only reason why store owners, the Kavanagh Group are celebrating, with the group receiving the National Quality Mark Group Retailer Award at the EIQA Awards. “Everyone in the Kavanagh Group is absolutely delighted by the success of the Dungloe shop and the Group overall,” enthuses Noel Kavanagh, Managing Director of the Kavanagh Group. “The fact that we performed so well at the Awards is a direct reflection of the effort put in by every member of staff in the Group. We pride ourselves on standards of excellence and this
16
is great recognition for the Group and for SuperValu, Dungloe.”
The Kavanagh Group The Kavanagh Group has grown over the past 25 years to the point where it now owns 15 supermarkets across Ireland and the UK. “The Group now employs over 900 people and every member of staff plays a vital role in maintaining the standards of the Group, from the exceptional management team I have put together to every member of staff working on the shop floor,” explains Noel. “I have always placed an emphasis on promoting staff from within the organisation and Liam [McShea] is a perfect example of how important that is. He entered the Kavanagh Group Trainee Management Programme five years ago and his ability to operate the Dungloe store to
December09Shop
such impeccable standards is evidence not only of his dedication but of his expert knowledge of every aspect of his business.” The Kavangh Group’s working relationship with Musgrave Group has also played a big part in helping the Group to grow over the years. “I have 30 years experience in grocery retail and I have always found that the Musgrave Group is an exceptional retail partner,” Noel points out. “Musgrave is acutely aware that it is only as strong as the members of its Group and it provides exceptional support across all aspects of retail.” As evidence, he points to the fact that some of the Kavanagh Group’s shops are extremely close to the border with Northern Ireland, including their stores in Dungloe and Ballybofey, which proved a challenge that Musgrave rose to. “The Musgrave Group trialled their Sterling pricematch offer in our shops before implementing the price roll-back nationwide,” Noel explains. “That kind of decisive reaction to market conditions has helped my shops stay competitive and helped the SuperValu brand trade well through very difficult market conditions.”
Significant Investment Despite those difficult market conditions, the Kavanagh Group has been investing significant amounts of money in its shops over the last two years. A large investment in the Dungloe shop saw it increase in size from 7,500 to 12,500 square feet. The Ballybofey shop was a new build and it opened its doors in 2008, generating vital employment in the north-west, not just in the shop itself but also in local businesses. “We emphasise fresh food in every one of our shops and we also pride ourselves on doing business with top quality local suppliers,” Noel explains. “Every Kavanagh’s shop is an integral part of the local community, not just as a super-
Profile
market but also as an employer and a customer of the top quality businesses in the region. Grocery retailing is an extremely competitive industry and running a successful local shop or supermarket is an incredibly involved process. That is one of the reasons we always look to promote from within. Managers that work outside the field of grocery retailing tend to be surprised at the sheer volume of work involved in managing a successful shop.”
Top Support According to Noel, the support he receives from Musgrave, who understand “just how hard grocery retailing is, particularly in the current climate”, is crucial to the Kavanagh Group’s continued prosperity. He points to the greatly increased SuperValu own brand range as a case in point: “We have seen a big increase in sales of the own brand goods as customers look for better value, without compromising on quality: we can offer extremely good value on a basket of goods through very strong price promotions offered by the Musgrave buying power.” According to the Kavanagh Group MD, “Musgrave helps us to deliver on the core objectives of all our shops, to deliver the best value to customers, to deliver the best in fresh foods, to deliver the best service and to be the best in supporting the local community. Every shop in the Kavanagh Group looks to achieve these goals and works extremely hard in doing so. Our success in doing that has been recognised in the Group Award from EIQA and the individual award of the Dungloe SuperValu.” The Kavanagh Group and its partnership with Musgrave represent the best possible execution of grocery retailing standards, which are maintained to the very highest level, as evidenced by the Group’s awards success. The Kavanagh Group haven’t merely excelled in the EIQA awards, as the Group’s shops in Dungloe, Claremorris, Clifden, Buncrana and Donegal Town, have all achieved the Excellence Ireland Emerald Standard, the highest award from Excellence Ireland, while all other shops in the Group have achieved Sapphire Standard. In short, the lesson FACT FILE of the Kavanagh Owner: Noel Kavanagh [Kavanagh Group] Group is simple: if Manager: Liam McShea you want to prosSize: 12,500 square feet per in grocery Number of retailing, even Staff: 35, full time & part time during times of Opening recession, just be Hours: 08:30-20:00, Mon-Wed; the best at what 08:30-21:00, Thur-Sat; you do! 09:00-19:00, Sun. 17
December09On
the Vine
The Wine Market in 2010 Jean Smullen looks at the trends likely to shape Ireland’s wine sector throughout 2010.
After
20 years of sustained growth, 2009 proved to be a very difficult for all sectors involved in the selling of wine. Figures from the Revenue Commissions to September 2009 show that the market for wine decreased by 9.8%, with a 10% decrease expected overall in 2009. Cross-border shopping continues to impact heavily, especially at the peak spending times (Christmas, Easter, St Patrick’s Day etc), while ferry crossings to France to purchase alcohol are also on the rise as ‘staycations’ increase in popularity. Value for money remains high on the consumer agenda: perceived value drives consumer sales and, subliminally, those purchasing wine believe that it is their duty to give a second glance to the ‘special offer’. The irony is that the consumer is getting very good value for their spend at the present time. The price/quality ratio in all categories has never been better.
Communicating the Value Message There has never been a better time for anyone to buy wine from their local retailers and the consumer should be made aware of this. Wine prices have dropped so much that what the consumer is actually getting at the
18
present time in all sectors of the trade is quality wine which far surpasses the price they are paying for it, with consumers getting brands they can trust at low-low prices. It is important that the customer becomes more aware of this, because this is what will help to keep them buying at home in the coming months and years. Lorna Rouse, Wine Brand Manager with Febvre & Company, told RETAIL NEWS that low/grade cheap wine just doesn’t cut it with the consumer, there is lots of good quality wine out there, selling at a competitive price, and she feels that these wines are going to feature strongly for 2010.
What Consumers are Buying So what is the consumer buying? The two countries who seem to be leading the way in terms of price/quality as well as overall sales at the present time are Chile and Spain. There has been a surge in sales of Spanish wines which would suggest that this is where the Irish retailer is looking for value. Chile too has been showing steady growth by offering good quality wine at realistic prices. Argentina has enormous untapped potential: they currently only have 1.4% of the Irish wine market, but with good value on offer from Argentina, this is a country which will feature more strongly in 2010. Wine styles are changing too. Conal Cassidy of Comans Wines told RETAIL NEWS that he feels that there is a swing back towards Chardonnay, particularly those with lighter use of oak. Argentinean Viognier is also coming into vogue. There is still a very high demand for Italian Pinot Grigio, as well as wine made from Sauvignon Blanc and Riesling grapes. For red wines, the big message is lower alcohol. Full bodied red wines loaded with higher alcohol levels are
not as popular any more. The consumer wants lighter red wine styles, a fact acknowledged by new world producers, many of whom are now reducing their alcohol levels from 14.5% ABV to 13.5% ABV. This would also be part of the swing back to the old world and in particular to Spain for red wine styles. The customer profile is also changing. Younger people are now buying more and more wine and they like sweeter styles, wines with higher residual sugar levels. So the trends for 2010 are already obvious: better value, lighter wine styles and better quality. The retailer who is aware of this will be the one to hang on to repeat customers. The message now must be ‘sell’ your wine. Highlight the quality and the value in terms of price. The wine trade must now go back to being proactive and to engage and sell to their customers. Survival must be the watch word for the next 12 months. The basics are there, now the retailer must get that message across.
New Zealand Wine Fair 2010 The 13th Annual New Zealand Wine Fair will take place on Tuesday, January 19, 2010 at the Radisson SAS Hotel in Golden Lane, Dublin 8. Trade are invited from 12 noon to 18:00. For more information, see www.jeansmullen.com.
December09Innovative
Menu System
What’s On the Menu at RMS? Retail
Media Systems created a cutting edge music and visuals player for Cork’s Café Hi, so that their menus, in-store promotions and background music run on an all-inone solution. The Cafe Hi chain is all about high quality fast food and understands the health conscious consumer, while rewarding its customers through a loyalty scheme. Cafe Hi were keen to get their in-store menu displays to work as a marketing tool, as well as a practical menu board. The menu displays on Cafe Hi’s LCD screens had become dated and did not reflect the brand image or create the right eatery experience. The Director of Cafe Hi wanted a menu display that changed automatically throughout the day with different food offerings associated with the mealtime of choice, as well as the ability to change product, price, image and colours instantly with the click of a button. The static menu boards needed to come alive to indulge the customer.
The menu displays had to be entertaining, informative and provide extra revenue for Cafe Hi.
The Solution Retail Media Systems designed a platform so that they could manage the software and hardware. Using Cafe Hi’s existing five LCD screens, RMS created a series of customised templates that are scheduled so that Cafe Hi can control what content is available, where and when. RMS update the content whenever it’s needed and actively monitor and manage the system. The Cafe Hi menu displays were re-vamped to reflect the vision that is “the good food and drink company”. Exclusive video content and graphical brilliance were just some of the new components added to the displays. RMS Creative Directors, with the help of Beata Dagiel of Cafe Hi, ensured the video content on this menu display was to be seriously cutting edge and designed to create an experience throughout
the day that continues to evolve. The graphics team at RMS create branded content and moving imagery clips that they add to the displays. Once the content is finalised, Retail Media Systems sends all the files down the internet, which are uploaded instantaneously to the client.
The Platform Retail Media Systems have designed a media platform that can run 6-8 visuals and one music zone at any one time. Finally, the retail sector have a cutting edge, easy-to-use music and visuals player so that their menus, in-store promotions and background music is an allin-one solution. Donnybrook Fair, Fresh supermarkets , Arnotts and Beshoffs are just some of Retail Media Systems clients. For a free consultation, call Keith O Reilly, Sales & Marketing Director (pictured), on 087 1237366.
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December09Trends
for 2010
Predicting Future Trends What will be the top ten trends in food and drink over the course of 2010?
Leading
food website, food&drink towers (www. foodanddrinktowers.com) has published its ‘Ten Top Trends’ report, highlighting a wealth of new product development and marketing opportunities for brands to get stuck into over the next 12 months. 1. The Marks & Spencer Effect “Looking back to the ‘good old days’ has become a nostalgic exercise during the difficult financial times we’ve experienced lately,” notes Helen Lewis, Managing Editor of food&drink towers. “It’s a bit like the ‘grass is always greener’ syndrome. Food and drink, lifestyles, eating habits: everything was so much better many moons ago, right?” food&drink towers have dubbed this the ‘M&S Effect’ “because it is a concept they have successfully championed recently through their promotional activity (including TV and in-store advertising)”. 2. Positive Nation “More and more brands will harness the power of the feel good factor to appeal to shoppers fed up with doom and gloom,” Lewis says. “Life has been too serious for far too long in our opinion, and most people are happy to be distracted from the mundane, even if just for a second.” 3. Moody Food “Foods that make claims relating to improved mood and emotional wellbeing represent the next generation of functional products,” Lewis opines. 4. Antioxidant Scoring “food&drink towers believes that 2010 will be the year of the ORAC unit,” explains the food&drink 20
towers Managing Editor. “Oxygen Radical Absorbance Capacity is a method of quantifying the strength/ value of antioxidants in a food. In a similar vein to the recommended daily amounts (RDA) of vitamins and minerals, ORAC units will provide a much-needed comparison tool for shoppers at the point of sale.” 5. Just A Handful Of Ingredients This trend relates to products being reformulated with as few ingredients as possible (cutting out all of the unnecessary additives and any artificial ingredients), as well as the introduction of new lines with no more than five ingredients. 6. Official Foodies “Your job, where you live and how you dress don’t define a person any more – it’s all about what you eat, where you eat, when you eat, how you eat and knowing everything from your aduki to your edamame,” notes Lewis. 7. Raw Food On The Go “food&drink towers included ‘The Raw Food Revolution’ in our ten top trends for 2008,” the Managing Editor recalls. “Since then, we’re pleased to confirm that raw food has moved forward, gaining wider acceptance and understanding.” She highlights UK examples of raw food restaurants such as Saf in London and Raw Fairies, the UK’s first raw food home delivery service, which are helping to make ‘raw’ more fashionable. 8. Quality & Price “We all know that price is a major factor in the weekly shop for many households due to increasing unemployment and the general rise in the cost of living. However, we believe
that this has also had a positive impact, prompting more people to consider the quality of their food and drink,” Lewis opines. 9. Cheese Please...What Next? “Famous cheese fans, including Blur bassist Alex James, have done wonders for the cheese industry,” notes Lewis. “People are becoming cheese snobs. Getting a product linked to a celeb is the ultimate scoop for a brand: it provides credible endorsement for free, compared to paid-for advertising. The ‘natural’ celebrity effect will get increasingly important, as consumers seek more credible seals of approval, but it can’t just be any old celeb...” 10. I See Seaweed “food&drink towers believes that the natural, healthy power of marine foods such as seaweed will be explored by producers keen to stand out from the crowd and offer something different for healthconscious consumers,” explains the Managing Editor. food&drink towers is a free resource for registered members (and it’s free to join) offering daily news, regular features, competitions, product reviews and a regularly up-dated press release archive. Press releases can be uploaded free of charge for publication within 24 hours. The news and press release pages are fully searchable by key word, company name and date. For more information, see www.foodanddrinktowers.com.
December09The
Year in Review
2009: The Year That Was JA N UA RY RGDATA calls for an investigation into why the prices independent retailers pay for international brands are so much higher in Ireland than in the UK or Northern Ireland. Addressing the Oireachtas Committee on Enterprise, Trade and Employment, RGDATA President John Foy told the Committee that the issue of high prices for goods bought from Irish based suppliers and agents had to be addressed as a matter of urgency.
the right to paid annual leave for long term illness. The Gala Group enters into a strategic partnership with Belfast-based Kelsius, a leading provider of automated HACCP compliance systems. Bord Bia launch their Statement of Strategy 2009-2011, noting how the Irish food, drink and horticulture industry has the potential to boost annual export returns by more than 20% to reach €10 billion by 2011.
F EBR UAR Y Minister for Enterprise, Trade & Employment, Mary Coughlan TD.
Retailers are putting undue pressure on manufacturers, according to Food and Drink Industry Ireland, who call for a legal framework to create “responsible trading practices” between grocery retailers and suppliers. New proposals to tackle the high cost of living and strengthen consumer rights are published by Fine Gael Enterprise Spokesman Leo Varadkar TD. They include an immediate review of electricity and gas prices, a ban on surcharges for all payments by ‘plastic’, and a freeze on Government charges. Following the closure of their Dundalk store, Superquinn launch the Programme for Competitiveness and Change, designed to strengthen operations and reduce costs. A cut in profit margins for newspaper sales is unlikely to be reversed, after discussions between newsagents and Independent News & Media (IN&M), the largest newspaper publisher in Ireland, reach an end. Newsagents were recently informed that their margin was being cut by 4% on the Irish Independent, the national version of the Evening Herald, and the Sunday Independent. Sunday World followed suit, with a commission cut of 5.25%. A new EU ruling allows workers on long term sick leave to retain holiday benefits. The ruling allows employees 24
Minister for Enterprise, Trade & Employment, Mary Coughlan TD, asks the Competition Authority to carry out a study of the Irish retail sector to find out why goods and services cost more in the Republic.
MAR C H
Rosemary Garth, Director, Alcohol Beverage Federation of Ireland.
According to Irish Distillers Pernod Ricard’s results for the first six months of this fiscal year, Jameson volume is up 7% and sales value up 14%.
The Alcohol Beverage Federation of Ireland (ABFI) calls on the Government to consider a range of measures, including lowering VAT and excise, to stop the “haemorrhaging of alcohol sales to the North”. Superquinn announce the appointment of Sheena Forde to Operations Director, with responsibility for the operational running of the company’s 23 stores and all new store developments. Danny Murray retires as Chief Executive Officer of Topaz, and is replaced by Eddie O’Brien, the company’s Chief Finance Officer. The Irish Farmers Association calls for a retailer code of practice, giving the farmer a “fair share” of the final retail price on foodstuffs.
Bulmers Pear is the latest new product launch to the Irish drinks sector, available in 568ml Pint Bottle, 330ml long neck bottle and 500ml can.
December09The
“the cost of doing business in Ireland is something that needs to be examined… Already BWG and others have had to resort to direct importation of some lines to indicate our serious intent to break this logjam and to continue to deliver best value to our retailers and their customers.”
L’Oréal Men Expert becomes an official supplier to Irish rugby through its sponsorship of the IRFU. John Player & Sons sponsored the recent 2009 National Federation of Retailer Newsagents (NFRN) annual conference.
The Walkers Sensations TVNow Awards, Ireland’s television awards, return to Dublin’s Mansion House on Saturday, April 18.
Ryan’s Centra, Raheen, Co. Limerick, is awarded the Centra Store of the Year title for 2009.
Centra Celebrates 30th Birthday Centra celebrates its 30th anniversary this year in Ireland. The group now have 474 stores throughout the Republic of Ireland. Pictured celebrating Centra’s 30th birthday are TV personality Lucy Kennedy and Centra Council Chairman, Andrew Cross, with Michael Morgan, Centra Sales Director, and Donal Horgan, Centra Managing Director.
BWG Group announces the appointment of Willie O’Byrne to the newly created position of Managing Director for Mace.
SuperValu present Excellence Ireland Hygiene & Food Safety Certificates to a record 180 retailers from all over the country, who completed the National Hygiene & Food Safety programme from EIQA (Excellence Ireland Quality Association). Also celebrated was the fact that an unprecedented 61 SuperValu stores received the Supreme Hygiene Award. The National Standards Authority of Ireland (NSAI) are to intensify their inspection of retailers, importers and packers of pre-packaged goods over the next three years. A survey by the Nutrition and Health Foundation (NHF) reveals that 45% of consumers do not read food labelling. Marks and Spencer’ staff are to receive a pay raise of up to 6.7% after workers union Mandate struck a deal in which the retailer committed to the terms set out in 2008’s national wage agreement.
Year in Review
Rumours persist that Asda are setting up shop in Ireland, after WalMart, the giant American retailer who owns the supermarket chain in the UK, set up a number of Irish internet domain names. Over 70% of Irish retailers have approached their landlords about rent reductions over the last year, according to a Rent Reduction Survey from Retail Excellence Ireland. Retail legend Matt Melia, the man known as “Mister MACE” passes away.
APRIL A law that prescribes the size and weight of pre-packed food products is revoked. The law, implemented in Ireland in 1973, clashes with a new EU directive that deregulates package sizes. Barry & Fitzwilliam seals new direct distribution contracts with Beam Global Spirits & Wine, Bols Amsterdam, The Edrington Group, Rémy Cointreau Group and SPI Group for a total of 23 internationallyrecognised brands. Mace MD, Willie O’Byrne, argues that
Flogas announces its intention to become a key player in the commercial natural gas market nationwide by offering businesses a 15% saving on the price currently charged by Bord Gais Energy Supply for its natural gas. 10 small or emerging food processing companies are presented with certificates for successfully completing the Enterprise Ireland and Bord Bia sponsored Superquinn Supplier Development Programme. Barry Group is awarded a Gold Excellence Through People award. The National Standards Authority of Ireland hosts a seminar on ‘Innovation and Standards, Supporting Enterprise’. Topaz agrees to the decommissioning of its storage tanks in Galway Harbour ahead of the Volvo Ocean Race’s visit to the city in May. Representatives from Ireland’s major supermarkets meet with the Department of Agriculture to discuss the future of retail surplus food. RGDATA condemns a Labour Court decision to force retailers to pay a 2.5% increase in the hourly wage rates for staff with effect from April 24. Chairman of the Drinks Industry Group of Ireland (DIGI), Kieran Tobin, states that the weak local economy and the increase in cross-border sales have combined to make 2008 the worst-performing year for the Drinks Industry in Ireland in 25 years. 25
December09The
Year in Review
Trade unions, Mandate, Siptu and Bawfu, reach a deal with Superquinn, providing workers with redundancy rights and shares in the supermarket giant.
was an average 22% on over 12,000 goods in an attempt to stem the tide of shoppers from the Republic into Northern Ireland.
ADM Londis plc report a resilient operating performance in its annual results for the year ended December 31, 2008. Profit before tax is reported at €4.1m, on a wholesale turnover of €341m and Group Retailer sales of €707m.
Fleming’s SuperValu in Church Square, Monaghan, is awarded the SuperValu of the Year national title for 2009 at the group’s conference in Killarney.
Tax on cigarettes rises by 25c per packet, but alcohol goes unscathed in emergency budget.
In May, the Barry Group create a new sales and business development team to service new Costcutter stores throughout the country and actively grow the franchise. Noel Brady has been appointed as sales manager for the Northern Region and Cyril Vickers has been appointed for the Southern Region, while Oliver Savage has been appointed as Business Development Manager for the Barry Group.
their unique offering to shoppers in the current challenging times, entitled ‘Value, The SuperValu Way’.
Conor Kilduff is appointed as Managing Director of Unilever Ireland, replacing Ronald Drieduite.
M AY Irish-owned Richmond Marketing begins to import and distribute the US beer brand Miller Genuine Draft in Ireland. Musgrave Group announces its results for the year ended December 31, 2008. Key financial highlights include sales of €4.8 billion, retail sales by their retail partners of €7.1 billion, and profit before tax of €75.5m. Cooley Distillery wins a record six awards, including ‘World’s Best Irish Single Malt Whiskey’ and ‘World’s Best Single Grain Whisky’ at the World Whiskies Awards in London. SuperValu launches a new strategic marketing campaign to communicate 26
Minister for the Environment, Heritage & Local Government, John Gormley TD launches a comprehensive Irish-developed Carbon Management Tool (CMT) for organisations in Ireland to assist them in managing their carbon, cutting their costs and improving their competitiveness. Lidl Ireland seeks ambitious and motivated individuals for its unique third level qualification, Lidl Ireland’s Bachelor of Business in Retail Management, in conjunction with Dublin Business School.
Lidl launch wide-ranging price cuts across the range of stores.
The Irish poultry industry joins forces with Bord Bia to launch a nationwide campaign to encourage consumers to look for the Bord Bia quality mark when purchasing chicken. Responsible Retailing of Alcohol Ireland launch a code of practice on the sale and display of alcohol in mixed trading premises.
Musgrave announce the relaunch of their 110,000 square feet cash and carry in Robinhood with an investment of €1.5m. The relaunch of Robinhood also marks the unveiling of Musgrave’s new cash & carry offering, Musgrave MarketPlace. This new offering represents a key milestone in the development of Musgrave’s cash & carry operations and is the culmination of an extensive brand development program which will see eight of their cash & carry branches rebranded as Musgrave MarketPlace, complete with a new brand identity.
Kevin Ecock and Mary Gaynor are accepted as members by the prestigious Association of Wine Educators (AWE), a group of independent, professional wine educators.
Tesco’s decision to cut prices in 11 of its stores in Ireland’s border region meets with mixed reactions from the industry. The supermarket chain reduced prices by what they claimed
J UNE ADM Londis plc unveils a €200,000 investment in the implementation of a Customer Relationship Management system (ASSIST) for its Group Support Office in Johnstown, Co Kildare.
December09The
The first easyFairs Packaging Ireland show takes place on June 17 and 18, in the RDS, Dublin, and is heralded as a great success. Dublin-born Hugo Hamilton is inducted into the Hennessy X.O Literary Awards Hall of Fame. Bushmills Irish Whiskey wins the best E-marketing campaign at the All-Ireland Marketing Awards for The Bushmills Trek campaign. Topaz come out on top in the Brand Campaign Award category. 368 Centra stores are rewarded with a Centra Quality Award for 2009.
SPAR Ireland invests €1m in extending its range of own-brand products across its network of 475 stores.
The Irish Dairy Board opens a new €35m cheese packing facility at the Kerrygold Company in Leek. A large number of MACE stores from around the country are recognised for achieving high standards in retailing at the annual MACE Excellence Awards. As part of Gala’s nationwide pledge to raise €250,000 for the Jack and Jill Foundation, Gala ladies took to the streets of Dublin, taking part in the Flora Mini Marathon. Regulations regarding the sale of Mass cards are to be introduced later this year, which will oblige retailers to sell Mass cards sourced from a “recognised” person: a bishop of the Roman Catholic Church, a provincial or superior of an order of priests.
Year in Review
Suppliers voice concerns that Tesco’s decision to source products from its parent company in the UK will damage their business, according to an Irish International BBDO survey.
Walkers and their PR agency, Life Communications, win Gold at the PR Awards for Excellence for ‘Best Use of Sponsorship’ for the ‘Walkers Sensations TV Now Awards’.
The European Commission is set to undertake an EU-wide review of the retail sector by the end of the year. The Commission will also review anticompetitive practices in the food supply chain.
Premier Dairies launches a new pack design, which will continue to feature one of Dublin’s most iconic landmarks – the Ha’Penny Bridge.
A new report from research group TNS reveals that customer loyalty is on the wane in Ireland. Aldi drops the prices of many of its goods, in an apparent response to Tesco’s decision to drop prices in its border-region stores. The Alcohol Beverage Federation of Ireland has rejected calls by the National Youth Council of Ireland to replace existing voluntary alcohol advertising codes. Rosemary Garth, Director of ABFI, states that she found the conclusions and recommendations of the report to be “quite simplistic and rather ignorant of the co-regulatory codes that have been developed between Government and the drinks industry”.
Irish specialist food producer, Rib World announces that it’s on course to significantly grow its business this year, creating 20 new jobs, investing in additional specialist machinery and establishing a new research and development unit at its plant in Clonmel, Co. Tipperary. Ireland’s first ever completely unmanned and automated self service filling station is launched in Santry, Dublin 9, by Great Gas Petroleum (Ireland) Ltd.
The potential implementation of a Deposit/Refund System for beverage containers in Ireland is slammed by the Convenience Stores and Newsagents Association. Gerry Duffy, the former president of RGDATA, founder and chairman of the Duffy Group Ltd and a founder member of the Irish Grocers Benevolent Fund (IGBF) and ADM Londis, passes away.
JUL Y New tobacco regulations are introduced banning all tobacco advertising and product display from retail premises. The regulation bans all advertising, including change mats on counters and backdrops, introduces a retail register and requires retailers to introduce a closed container or dispenser.
Ann Fitzgerald, Chief Executive, National Consumer Agency.
The National Consumer Agency (NCA) publishes its biannual grocery survey, which shows major reductions in grocery prices since the agency’s last survey six months ago. Dunnes Stores and Tesco prices on branded goods are very close, while the price gap between Aldi and Lidl has narrowed significantly since January 2009, with very little difference between them. A new Competition Authority report gives the Irish retail sector a clean bill of health. The study into Irish retail revealed that the price dif27
December09The
Year in Review
ference between the North and the Republic is explained by the high cost of business in the latter, the devaluation of Sterling, and the fact retailers in the Republic are charged more for internationally branded goods. The report was made at the behest of the Tánaiste and is based on data from over 100 submissions, and a number of meetings with retailers and suppliers.
the six months period to June 2009 increasing to €211m, underpinned by the addition and performance of the recently acquired Beamish & Crawford brands into the Heineken Ireland portfolio.
Tesco Ireland extends its Change For Good price cuts, initially introduced in its border stores, across Dublin, with plans to roll-out these “long term” price reductions across the rest of the country.
SuperValu launch their Value Irish Week, which sees all 194 independently-owned SuperValu stores showcasing the very best of Irish food and brands, with more than 1,500 demonstrations and tastings. Suppliers involved include Kepak, Brennan’s Bread, CountryStyle Foods, Glanbia, Carbery, Green Farm Foods, Lyons Tea, Boyne Valley, Green Isle, Unilever Ice Cream and Georgia Pacific.
Daybreak unveils a stunning new brand identity and store format, which has already been rolled out to 20 of its 150 stores across the country, with more to follow.
AU GUS T Barry & Fitzwilliam takes over the distribution of the extensive portfolio formerly held by Allied Drinks Distributors (Dublin). Magazines Ireland is the new name for the association of Irish magazine publishers, which represents 43 Irish publishers who together produce over 200 magazines, both consumer and business-to-business titles. In a declining beer market, Heineken Ireland succeeds in growing market share, with company turnover for
SEP TEMB ER
Cooley Distillery unveils the new branding for its award-winning Connemara family of Peated Single Malt Irish whiskeys.
August 31 sees more than 30 of Ireland’s leading food and drink brands form a new independent organisation called Love Irish Food, established to promote Irish manufactured food and drink brands to consumers, in a bid to help safeguard the future of Ireland’s largest indigenous industry. Leading economist Jim Power is unveiled as the Chairman of the organisation. The participating brands range from some of the largest indigenously-produced FMCG brands to smaller artisan producers. Member brands include Barry’s Tea, Tayto, Ballygowan, Batchelors, Avonmore, Cadbury, Goodfella’s, Cully and Sully, Flahavans and Follain.
Pictured celebrating SuperValu’s 30th birthday are Emmet McConville, SuperValu, Monasterevin, Co. Kildare; Donal Horgan, Managing Director, SuperValu; and Ciaran Levis, SuperValu Sales Director.
SuperValu celebrates its 30th anniversary in Ireland. The SuperValu brand has grown from a beginning of just 12 stores in 1979, to becoming the single biggest supermarket network in the country with 194 stores and employing in excess of 15,000 people. Edward Dillon & Co. Ltd and Foster’s EMEA Limited announce the renewal of their distribution agreement for Wolf Blass, Rosemount, Penfolds and Yellowglen brands in the Republic of Ireland. Avonmore announce a revolutionary new design for its 2-litre milk bottles, with the launch of the new ‘Easy-Pour Jug’. Bord Bia launch their Marketing Fellowship Programme, in association with the UCD Michael Smurfit Graduate Business School. The programme aims to boost Irish food and drink exports, which exceeded €8 billion in 2008, and support Irish companies in expanding their market reach. Bewley’s win three gold medals at the prestigious international Great Taste Awards 2009 for their tea, while gluten-free bakery, Delicious, wins two gold medals.
Pictured at the launch of Love Irish Food are (second from left) Jim Power, Chairman of Love Irish Food, along with member brand representatives: Colin Gordon, CEO, Glanbia Consumer Foods Ireland; Colum O’Sullivan, Co-founder, Cully & Sully; and Kieran Rumley, Marketing Manager, Batchelors. 28
Irwin’s Bakery celebrates its 100th anniversary.
December09The
Year in Review
Flogas becomes the exclusive distributor for Superser mobile heaters in Ireland and the UK. The Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan TD, launches a public consultation process for a proposed Code of Practice for the groceries sector. Ireland’s large retailers come under fire for subjecting suppliers to unfair demands. According to Michael Creed TD, Fine Gael Spokesperson on Agriculture, Fisheries and Food, some food suppliers are paying an annual €1m in ‘Hello Money’, which has led to the proposed Fine Gael Food (Fair Trade and Information) Bill 2009.
Broadcaster George Hook, model Andrea Roche and Business Development Manager for Guinness, Eamon De Burca, are pictured during the summer at the annoucement that Guinness captured 250,000 signatures in just one month, in a bid to reach 1 million signatures for the Guinness Signature campaign for the Arthur Guinness Fund, part of the celebrations leading up to Arthur’s Day.
without compromising the group’s support for Irish suppliers, with an additional 1,000 everyday products and brands across all ranges being reduced significantly. Efficient Consumer Response Ireland has announced the appointment of its new Co-Chairmen: James Wilson, Trading Director, Superquinn, and John Casey from Allied Logistics.
Pictured outside the ADM Londis Conference in September at the Heritage Golf and Spa Resort, Killenard are (l-r): artisan producer Peter Ward; Stephen O’Riordan, CEO, ADM Londis; legendary All Black Sean Fitzpatrick; Emilie Coles, TNS Magasin; Peter Foley ADM Londis Commercial Director; and Leo McCauley, Chairman, ADM Londis .
ADM Londis plc’s Annual Retailer Conference takes place at the Heritage Golf and Spa Resort, Killenard. The group commends its retailers’ resilient performance during 2009 and outlines how ADM Londis and its retailers, through partnership and collaboration, can face into 2010 with a strong core business, excellent support services and innovative consumer propositions.
Speaking at the International Federation of Agriculture Producers’ Commodities Conference, Brendan Smith TD, Minister for Agriculture, Fisheries and Food says that supermarket chains must consider suppliers, as well as consumers and shareholders. Smith said retail needed to support and nurture its agri-food sector, as this would benefit retailers and accelerate the country’s economic recovery.
The National Off Licence Association hits out at supermarkets for ignoring the code of practice on alcohol sales. Bord Bia launch an information campaign to increase consumer understanding of the Bord Bia Quality Mark, outlining the range of products that carry the Mark and what the Quality Mark means in terms of quality assurance standards. SHOP 2009 takes place from September 28-30 in the RDS Simmonscount, Dublin, and is heralded as a great success. On September 24, the Guinness brand celebrates 250 years since Arthur Guinness signed the 9000-year lease on the St James’ Gate brewery with Arthur’s Day, a hugely successful global celebration.
O C TO B ER All tobacco retailers are required to register with the Office of Tobacco Control (OTC) before October 1, in order to be able to continue selling tobacco.
Barry Group launch a new discount warehouse format, Buy Lo, which offers branded goods at discount prices. SuperValu announce a further €30m investment to deliver even more long-term price cuts to consumers,
The remodelled Dunnes Stores re-opens on Cork’s Patrick’s Street in September.
2008/2009 is announced as another successful year for Irish Distillers Pernod Ricard internationally, with the continued and very positive development of Jameson globally, confirming its status amongst the most dynamic whiskey brands in the global top 100 spirit brands. 29
December09The
Year in Review
Barry & Fitzwilliam take over distribution of the Villa Maria wine portfolio in Ireland.
published by the National Consumer Agency, are intended to iron out misleading practices in the sector.
ADM Londis plc reach agreement with UK wholesaler Nisa-Today’s to source a range of well known international branded products and a private label range, which will place Londis retailers in a more competitive position in the grocery sector. Under the agreement, ADM Londis has secured the future wholesaling rights in the Republic of Ireland for Nisa’s Heritage and Value private label brands.
Musgrave announce that Frank Coghlan will retire from his position as Managing Director of Musgrave Wholesale Partners on April 30, 2010, and will be succeeded in his role by Martin Kelleher.
At their Annual Conference, The Barry Group report an increase of sales to €212.5m, while overall group profit before tax rose to €2.67m. The CSNA tells the Oireachtas Joint Committee on Enterprise, Trade and Employment, that Joint Labour Committee (JLC) wage rates are untenable and a direct cause of store closures. New guidelines on advertising and price promotions for the retail sector, 30
Rumours abound that US food giant Kraft are bidding for Cadbury. Subsequently, other potential buyers come to the fore.
Britvic licensed wholesale, the wholesale division of Britvic Ireland, is undergoing a significant change in management structure. The company, which has traditionally focused on both the soft drinks and alcohol sectors, will now be a dedicated alcohol department.
The Superquinn Irish Festival celebrates everything that’s great about Irish food, showcasing the very best of Irish food from local producers and suppliers throughout its 23 stores.
30 young Irish authors have their stories published in aid of Barnardos Children’s Charity, courtesy of ADM Londis, in ‘Write Up My Street’, a powerful and inspiring collection of short stories based around community life in Ireland today.
NO VEMB ER
The question of ‘where to now for the retail trade’ is debated at the inaugural ‘Future of Retailing in Ireland’ conference.
SPAR Ireland launches a new €1m television and radio campaign to help launch a new schedule of Euro Crunch offers, which starts with an initial Back to School promotion.
Glanbia Consumer Foods sign a new franchise agreement for the Yoplait brand in Ireland with Sodima, the owners of the Yoplait yogurt brand internationally. The new franchisee agreement lasts 15 years and is a continuation of the existing 35-year relationship between both companies.
Public Private Partnership contract to design, build, finance, maintain and operate Ireland’s three Motorway Service Areas by the National Roads Authority.
SuperValu scoops 11 awards at the Blas na hÉireann National Irish Food and Drink Awards ceremony in Dingle, County Kerry. RGDATA Director General, Tara Buckley.
The RGDATA Roadshow in Dublin sees Director General Tara Buckley describe local, family-owned stores as “the backbone of our economy”. It is also revealed that economist Jim Power is carrying out research on behalf of RGDATA on the True Value of Local Shops.
The Daybreak group runs its annual Retailer Conference, with the theme ‘Winning in the Recession and Emerging Stronger’. The 2009 Daybreak Store of the Year is announced on the night, with the honours going to Stephen & Aisling O’Connell’s Daybreak in Carrigkerry, Co. Limerick.
Tobacco giant Philip Morris Ltd (PML), alongside Donegal retailer Maurice Timony, mount a legal challenge to the country’s ban on advertising or displaying tobacco products in retail stores across Ireland. The SuperStop Consortium are awarded the
Stephen O’Connell, store owner of Daybreak Carrigkerry, Co. Limerick, celebrates being named 2009 Daybreak Store of the Year, with his staff.
December09The
Unilever Ireland is aiming to help drive retail sales volumes with a consumer communications campaign which highlights the affordability of its product range, the first time that Unilever Ireland has united brands in one campaign with one message. Superquinn expands its range of own brand products, with over 800 new lines to be added this year. The National Lottery launch the Irish version of Deal Or No Deal, the exciting TV game show and scratch card. Bewley’s launch a major new website, www.bewleys.com, to share the company’s expertise and to help foodservice operators to maximise profits from hot beverages in their outlets. SuperValu raises €1.28m of new sports and active play equipment for Kids in Action. Wexford Creamery wins the Q Mark Award for Hygiene & Food Safety in the category of Food Processors & Producers and is also shortlisted in the Food Manufacturers category.
Illegal tobacco sales come crashing into the spotlight with the seizure of 120m cigarettes, with a street value of €50m in County Louth, and enough tobacco leaf to manufacture 12m cigarettes in Co. Monaghan. The European Commission claims that the Irish Government’s price restrictions on cigarettes pose a threat to free competition. Dunnes Stores finally sign the retail code on alcohol, by which retailers must keep their alcohol products in a separate area of a store. The company also takes a High Court challenge against a Central Statistics Office (CSO) demand for information about the supermarket chain’s finances.
following a dispute between the multiple and various newspaper groups and distributors. A survey carried out by National Consumer Agency on the cost of personal care goods and over the counter medicines has revealed price differences of up to 161.6% between retailers. The NCA surveyed 117 products sold across eight leading pharmacy groups, four independent pharmacies and the four largest supermarkets. New research published by the Office of Tobacco Control (OTC) shows that children have an unacceptably high chance of purchasing cigarettes through shops and licensed premises.
D EC EMB ER Aldi reports a phenomenal 44% increase in pre-tax profits to €124m for its Irish and British operation in 2008, up from €85.5m the year before, the second year in a row the discount retailer has posted such massive increases in profits. A number of Irish daily and Sunday newspapers are currently unavailable in Dunnes Stores outlets nationwide,
Marks and Spencer is to break with 125 years of tradition and introduce other brands into its stores.
RGDATA criticises Jacob Fruitfield Food Group over legal threats the group has made to individual retailers who tried to source imported Jacobs products from other EU countries. Retail Excellence Ireland (REI) predicts that the retail industry alone will apply for funding to protect 21,000 at-risk jobs as part of the €250m Employment Subsidy Scheme. The Government’s decision in the Budget to reduce excise duty on alcohol and reverse the 0.5% increase in VAT introduced last year is broadly welcomed. However, groups like Retail Excellence Ireland claim that more needs to be done to help the struggling retail industry and to stimulate consumer spending. “Even a temporary reduction in VAT to 17.5% would bring us into line with the UK and give Irish retailers a chance to get back on their feet in 2010,” argues REI CEO, David Fitzsimons.
MACE launches a major consumer promotion featuring thousands of giveaways, including a brand new Suzuki Splash 1.2GLS. John Noonan, Sales and Marketing Director at Flahavans, is named Marketer of the Year 2009 by Marketing.ie. The 2009 Musgrave Triathlon raises €250,000 for Our Lady’s Children’s Hospital, Crumlin, and the Irish Cancer Society. Tánaiste Mary Coughlan TD’s proposed code of practice for the retail trade comes under fire from the Economic and Social Research Institute (ESRI).
Year in Review
BWG Foods reveals a complete make-over of its XL convenience store brand, shortening the name from XL Stop & Shop to XL and upgrading the store image, layout, offering and overall look and feel of the brand. XL’s National Business Development Manger, Colm Fitzsimons is pictured outside the new look XL store, Corrig Stores in Dun Laoghaire.
The Musgrave Group wins the John Sainsbury Award for Learning and Development at the prestigious IGD Food Industry Awards in London. BWG Group announces that Willie O’Byrne has been appointed to the position of Managing Director of BWG Foods. 31
December09Newsagency
Newspread: Getting IT Right Newspread’s new IT system makes the retailer’s job much easier when it comes to managing this time-consuming category.
Major
capital investment during the worst economic downturn in living memory is not something we see much of, but that is exactly what Newspread has done with the launch of its new IT system earlier this year. Despite early teething difficulties, recent feedback from retailers suggests the benefits are now becoming apparent. Having initiated the plan in prerecessionary times, CEO Ian Keogh’s commitment to and belief in the project never wavered, even as the economy buckled. “Based on feedback from the trade, we recognised that we needed to up our game considerably in order to continue to provide the level of service required by both newsagents and publishers,” Keogh says. “The new IT system, together with our enhanced Customer Service support team, enables us to bring our service to a much higher level.” Keogh researched a number of options, and having spoken with many UK industry colleagues, the overwhelming view was that the system operated by SmithsNews, the UK’s largest wholesaler, was the best in the business. “We purchased what is effectively the Rolls Royce of wholesaling systems and, with a little more fine tuning, our customers will soon be enjoying the full benefits,” says Keogh.
Retailer Website Newspread’s focus on IT development goes back over three years, when the company first launched its retailer website. The website assists retailers in managing this time-consuming category by placing all essential information at their fingertips. “The Newspread website is fantastic. It’s very user friendly and saves me so much time. For looking up old 32
answered promptly and the team are very efficient in dealing with my queries,” explains Niamh Collins, SPAR, Upper Baggot St, Dublin 2.
Code Of Practice for the Press Industry
invoices, changing my standing order, checking deliveries and credits, it’s invaluable,” notes Fergus Giblin, EUROSPAR Malahide. Regular communication between newsagent and wholesaler is critical and Newspread has driven some excellent initiatives in this area in recent times. A regular quarterly newsletter provides invaluable advice and information about important developments in the industry, while Newspread’s quarterly retailer roadshow has proven to be a huge success. It was at these roadshows that the strength of feeling about Newspread’s Customer Service call centre surfaced. Language difficulties caused by the centre’s location in Poland, coupled with delays in call answering, gave rise to considerable frustration with retailers. Based on this feedback, Newspread moved the call centre back to Ireland in August and the improvement was dramatic – the language issue disappeared and call answering efficiencies improved immeasurably. “I’m very impressed with the improvements. My call is always
One of the most significant developments of the year was the launch of the Code Of Practice for the Press Industry (COPPI). While still in its infancy, the early signs are very positive and Newspread has proved to be a strong supporter of the Code, particularly in the areas of supply management and communication. Indeed it was Newspread who first introduced a full copy collection service, which has been a major step forward for the industry. 2009 has proven to be a difficult trading year and with another in prospect for 2010, newsagents must chase every opportunity to increase sales and improve margins. One obvious opportunity is the savings of up to 2% on the cost price of UK magazines simply by purchasing from Newspread, effectively enhancing retail margins. The temptation for many companies in such difficult times is to cut resources and service levels. It’s therefore very encouraging, in spite of the economic conditions, to see a company like Newspread investing more in delivering a better service to their customers, meaning newsagents can face into 2010 with greater confidence.
The numbers always add up in your favour
€52 million. That’s what National Lottery retailers earned last year. €52 million paid in commission and bonuses for selling National Lottery games. What’s more, €267 million was raised for good causes all over the country. So, with 272 million ticket transactions and €455 million paid out in prizes, it’s fair to say the numbers add up to everyone being a winner.
December09Music
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, 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 34
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, televi-
sions 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.)
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.
December09Music
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,
we 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 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 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 nonpublic areas such as your home. Once you play music on your premises, it becomes a public performance of
Use in Shops
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 premises 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 (01) 6614844.
Do You Need a PPI Licence? WHILE IMRO look after the interests of the composers and publishers, Phonographic Performance (Ireland) Ltd (PPI) was set up by the record industry to administer and control public performance and broadcasting rights centrally. PPI licenses Irish public performances users and broadcasters on behalf of its member record companies. All records, tapes and CD’s are sold for private or ‘family’ use. If they are to be used in public, for example, background tapes, then a licence must be obtained from PPI. For the public use of sound recordings and radio broadcasts as background music, the licence is based on square footage area where sound recordings are audible. For more information, contact: Phonographic Performance (Ireland) Limited, PPI House, 1 Corrig Avenue, Dun Laoghaire, Co. Dublin. Tel: (01) 280 5977. Email: info@ppiltd.com 35
December09Breakfast
Time
Breakfast Habits Changing Consumer breakfast routines in Ireland are changing, as more people opt for quick and convenient solutions that don’t interrupt their busy lifestyles.
Research
from Kellogg’s Away From Home has shown that the traditional at-home breakfast occasion is becoming an increasing challenge in Ireland, mainly due to early morning starts and long commutes, which leave little time for sitting down to a meal. In response, consuming breakfasts on-the-go is significantly increasing, with 15% of all breakfasts in Europe, including Ireland, eaten away from home during 2007. This is expected to increase by 2012 as consumers continue to try to incorporate a breakfast in their day without delaying their routine. One of the most significant trends emerging in eating away from home is ‘desk dining’, as 10% of breakfast occasions in Europe were moved into the work place in 2007, allowing consumers to multi-task in the office. This figure is also expected to rise significantly. This trend also provides a solution to the second most popular reason for not eating breakfast at home – consumers are increasingly finding they are less hungry early in the morning, as time-scarce lifestyles lead consumers to eat meals late at night once the day’s tasks are complete. Consuming breakfast at work means they can delay the meal. “The results of our study have significant implications for the category in the Away From Home sector, with more opportunities to diversify what’s on offer to consumers and capitalise on this fast growing trend,” notes Andy Phillips, European Customer Marketing Controller at Kellogg’s Away From Home. 36
“The growth in eating breakfast away from home brings demand for quick, easy and convenient solutions which don’t impinge on consumers’ valuable time. The breakfast solution also needs to be portable, to meet the needs of on-the-move lifestyles.” Here in Ireland, people eat more breakfast cereal than any other country in the world; at 8kg per head annually, that’s 2kg more than the UK, the world’s next biggest cereal eaters. 97% of Irish households purchase cereals (Source: Kellogg Consumption Study, 2008), with total value sales for the category worth over €200m in the Irish market (Source: ACNielsen MAT to July 12, 2009). Of course, breakfast is about more than cereals, and includes everything from tea and coffee to baked goods. Indeed, across the entire breakfast spectrum, bakery and cereals manufacturers are attempting to differentiate their brands, especially in growth areas such as healthy and convenient bakery products. In Ireland, TNS figures show that price increases have driven value growth in the bakery sector with volumes falling as households cut down on frequency of purchase. Bread dominates the market with 64.8% volume share; morning goods’ share of the market has risen to 17.9%, while ambient cakes and pastries have declined slightly to 17.3%. Indeed, morning goods have shown continuous growth over the last three years in Ireland with a further 15% value
growth recorded last year, according to figures from Bord Bia.
Lifeforce Lifeforce Original Irish Muesli, from Boyne Valley Group, is synonymous 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 is high in complex carbohydrates, fibre and other nutrients, essential for the most important meal of the day.
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.
Bonne Maman Bonne Maman, the premium French jam, has full distribution throughout Ireland and has maintained a very impressive growth in 2009. For many
December09Breakfast
years, Bonne Maman has been the uncontested leader in its market with a continuing strategy to sustain growing consumer demand. Bonne Maman, with its unique design and ‘home made’ image, really stands out in-store. Bonne Maman continues to ignore the trends, with Irish consumers continuing to purchase its premium offering. With an emphasis on quality and content, all jams boast a minimum of 50% whole fruit per 100g of jam product. Bonne Maman is available in
Boyne Valley Honey is celebrating 50 years in business in 2010 and continues to be the most popular brand of honey in Ireland.
Valley Manuka Active 10+ Honey, available in 350g jars. Manuka Honey is one of the key drivers of growth in the honey category, with consumers recognising its various health benefits. With improved branding and real stand out on-shelf, Boyne Valley honey will continue to drive sales in the category with a range of consumer promotions in 2010. An all year favourite, Boyne Valley Honey is ideal for use as a ham glaze, as a topping for ice-creams and desserts and even as a sweetener for hot whiskeys.
Time
ACNielsen MAT to July 12, 2009). As the best supported cereal brands in the Irish marketplace, the Kellogg’s Big Five are guaranteed to perform and should therefore be given major prominence on the cereal aisle. Perfect for stores without a sit down breakfast offering and for sandwich shops looking to cash in on convenience, the Cereal To Go pot from Kellogg’s Away From Home includes a serving of cereal contained in an eye-catching, ready to use bowl to maximise impact and encour-
Kellogg’s All Bonne Maman jams boast a minimum of 50% whole fruit per 100g of jam product.
Strawberry, Apricot, Blackcurrant, Blackberry, Raspberry, Peach, Damson Plum, Berries and Cherries, Wild Blueberry, Orange Marmalade and Mandarin Marmalade flavours. Bonne Maman Jams are 100% natural products and are free from preservatives, flavouring and colouring. Bonne Maman’s success will continue into 2010 with innovative in-store stands, consumer and trade offers.
Boyne Valley Honey A major driver of the preserves category, Boyne Valley Honey is celebrating 50 years in business in 2010 and continues to be the most popular brand of honey 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. The range also includes Boyne
The breakfast cereal aisle is a true destination shop for the vast majority of consumers, with Kellogg’s top of the list. Over 80% of all shopping baskets contain a Kellogg’s product: hardly surprising given that Kellogg’s brands account for five of the top six selling ready-to-eat cereal brands. So not only do Irish consumers love breakfast cereal, they also love Kellogg’s. According to recent category segmentation research commissioned by Kellogg’s (Source: Landsdowne Cereal Category Segmentation Research, June 2009), despite the current recessionary trends in many grocery categories where consumers are “deal chasing”, brand choice is still a primary driver in the decision-making process within the cereal category. The Kellogg ‘Big Five’ cereal brands in order of value performance are; 1. Kellogg’s Special K 2. Kellogg’s Corn Flakes 3. Kellogg’s Coco Pops 4. Kellogg’s Rice Krispies 5. Kellogg’s Crunchy Nut Together, these five Kellogg’s brands account for over 40% of all cereal sales in Ireland (Source:
The hugely popular Special K brand, Kellogg’s star performer in value terms.
age impulse purchase. Cereal To Go comes in 30g quantities, the ideal portion size for a nutritious and balanced breakfast solution, in five top selling brands: Special K, Special K Red Berries, Crunchy Nut, Coco Pops Choco Krispies and Corn Flakes.
Kelkin With the growing awareness among Irish consumers of health issues, like obesity, and the importance of a healthy diet, comes a growing demand for a wider choice of healthy breakfast cereals. Kelkin recognises the health issues facing the Irish population and unlike many other breakfast cereal manufacturers, have developed a muesli range to meet modern day demands. Kelkin’s range of mueslis contains no added sugar, and only natural ingredients, without compromising on taste. The tasty range, made in Ireland, consists of three variants: Kelkin Original Muesli Fruit & Nut 1kg, Tropical Muesli 1kg and Honeycrunch Muesli 750g. Each 37
December09Breakfast
Time
bag offers consumers excellent value for money, costing as little as €0.21 a bowl! Kelkin launched a new Oat Granola range in July of this year, specially designed for granola lovers with both health and value for money in mind. The range consists of three mouth-watering variants: Kelkin Triple Berry, Tropical and Fruit & Nut. Kelkin Granolas are made in Ireland, using only the finest quality ingredients, which have been carefully selected from around the world. Each cereal is high in fibre, full of antioxidants, contains no added salt and is packed in convenient, re-sealable 500g pouches, offering consumers quality and value for money. So far, consumer reaction has been excellent. The range is being supported in press and with
oaty flapjack range with two new varieties, Original and Cranberry, and a new improved Choc Chip recipe. Deliciously light and golden with an irresistible crumbly texture, these oaty snacks with melt in the mouth Belgian choc chips, juicy cranberry fruit or original are made with the distinctive natural goodness and taste of Flahavan’s oat flakes. Flahavan’s Progress Oatlets is Ireland’s favourite porridge and has a loyal Irish customer base, with over one million servings consumed nationwide each week.
Ireland, have been milling oats in County Waterford for over 200 years and provide millions of Irish people with an energy packed healthy breakfast. As the hot oats cereal category leader, claiming over 65% market share, Flahavan’s have invigorated the category by delivering more growth and by bringing more consumers to the oats category through offering healthful solutions that meets consumers’ needs. “Our focus is on quality and innovation that delivers on the texture and taste of the finest wholegrain rolled oats,” explains a comKelkin’s range of mueslis contains no pany spokesperson. “Our oats are added sugar, and only natural ingredients, without compromising on taste. sourced locally from a panel of registered growers and our unique millnumerous promotions throughout the ing process gives our product range its year. For further information check distinctive texture and taste.” out their website, www.kelkin.ie, or Flahavan’s Progress Oatlets is contact the Kelkin sales office on 01 Ireland’s favourite porridge and has 4600400. a loyal Irish customer base, with Market data shows that the hot over one million servings consumed cereal market is continuing to grow nationwide each week. More recently, with a MAT of 12.3% (Source: Total Flahavan’s introduced an exotic twist Scantrack, ROI, Mult/Grp/4CT, MAT, to a healthy breakfast with its Real April 19, 2009). The gluten free cereFruit Porridge varieties: Apple and al market is no exception. Kelkin’s Raisin with a hint of cinnamon and gluten free porridge sales are going Sunrise Fruits. from strength to strength each Flahavan’s also extended its month. Maintaining its position as an popular Microwaveable Quick Oats innovator within the ‘Free From’ arerange to include an Organic Sachet na, Kelkin intends to launch a new variety available in 8 x 35g box and addition to its existing Gluten Free an Organic Portable Porridge Pot Cereal range of Muesli and Porridge 40g serving. These join the already this winter. popular Quick Oats range, which includes a Drum, Sachets and Portable Porridge in a Pot – Original Flahavan’s or Strawberry flavours range. Flahavan’s, one of the oldest private Flahavan’s have relaunched their family-owned food companies in 38
Lyons Tea Lyons Tea is Ireland’s number one tea brand with 42.4% market share (Source: ACNielsen, April 17, 2009). Recent research has also revealed that Lyons Gold Blend is the best tasting, most refreshing and revitalising gold blend tea on the Irish market (Source: Synovete Research, Dec. 2008).
Lyons Gold Blend is made from high quality, full bodied teas, and a new, richer colour pack has been launched to communicate its rich taste.
Lyons Gold Blend is made from high quality, full bodied teas to give every cup a warm golden colour and a refreshingly rich, smooth taste. A new, richer colour pack has just been launched to communicate the rich taste of Lyons Gold Blend Tea. Lyons Tea employs expert master blenders and tasters to select the best blends and combination of some of the finest teas from Kenya, Assam from India and Ceylon from Sri Lanka, to produce the highest quality tea. The Lyons Tea range also includes Lyons Original Blend, Lyons Gold Blend Reserve, Lyons Kenya Blend, Lyons Decaffeinated Tea, and the range of Lyons Green Teas. For further information on Lyons Tea, see www.lyonstea.ie.
December09Breakfast
Time
Festive Fame from Denny and TV3
The Kenco FreshSeal 2Go offers a total solution to serving hot drinks on-the go.
Kenco The Kenco Coffee Company’s Kenco FreshSeal 2Go offers a total solution to serving hot drinks on-the go. The simple-to-operate hot drinks system works in conjunction with Kenco FreshSeal products and helps make it possible to serve great quality branded hot drinks even in the most operationally challenged environments. The unit is simple to install and operate, as well as being quick and easy to clean. It can be plumbed or there is a non-plumbed version and its small footprint means it can fit into small spaces. Kenco FreshSeal offers a fantastic range of well-loved brands, including ethically sourced Kenco freezedried instant coffee and Suchard Hot Chocolate flavour drink, all containing ingredients sourced from Rainforest Alliance Certified farms. Also available in the range are other well known brands such as Lyons Tea, Carte Noire Coffee, Twinings Traditional English Tea, Knorr Vegetable Soup and Bovril.
DENNY and TV3 have announced a first in Irish TV history – a feature advertisement that will be broadcast live to the nation on Christmas Day. December 25 will see a film crew transmit live from someone’s home, giving one household the opportunity to address the nation and share their thoughts on what home means to them at this special time of year. The public can register to star in the ad at www.tv3.ie/denny where they will be asked to say in 30 words why Christmas makes their house a home. All households and gatherings are invited to take part, from the traditional family, to groups of friends or neighbours. The broadcast will air live during the ad break of Coronation Street, which is expected to pull in the highest viewing figures of the day. “Christmas is essentially the most important day of the year for family, and given Denny is a very home focused brand and often part of the traditional Irish Christmas Day breakfast, we wanted to really highlight this special day by letting one family speak out,” notes Tricia Burke of Denny. “It’s a very natural step for Denny as our advertising is based on using real people with no scripts, just genuine and authentic situations.” Denny will donate €10,000 on behalf of the winning household to the Simon Communities of Ireland, who support people who are homeless in Ireland. They will also donate €1 for every entry received on tv3.ie/denny.
Model Karen Fitzpatrick launches Bewley’s new Fresh Coffee Starter Pack for people who want to make the perfect cup of fresh coffee at home with no fuss.
People may be surprised to learn that making fresh coffee is just as easy as making a cup of tea.” Bewley’s clever new Fresh Coffee Starter Pack comes with a bag of freshly ground Bewley’s Café Blend coffee and an easy-to-use cafetiere, with a measuring scoop, a reseal clip and an easy preparation guide. Also included in the pack, Bewley’s book of coffee is a full colour pocket book with loads of information on everything you’d like to know about coffee, and complements Bewley’s newly launched website at www.bewleys.com.
Breakfast Facts Bewley’s “Research undertaken by Bewley’s has told us that people want the real taste of fresh coffee at home but they don’t quite know how to make it, what equipment is needed, how to store it or where to buy it. Coffee drinkers would not order instant coffee in a café so we want to give them the great taste of fresh coffee at home,” notes Mark Saunders of Bewley’s. “We’ve specially created our new Fresh Coffee Starter Pack to provide a really easy way of making fresh coffee at home.
Consuming breakfast on-the-go is significantly increasing, with 15% of all breakfasts in Europe, including Ireland, eaten away from home during 2007. Desk dining is on the increase, with 10% of breakfast occasions in Europe moved into the work place in 2007, with even higher figures expected for 2008 and 2009. An important part of the breakfast category, the cereals sector is worth over €200m per year. Irish consumers eat more cereal per capita than any other country in the world, munching their way through 8kg per head, annually. Morning goods have shown continuous growth over the last three years in Ireland, with a further 15% value growth recorded last year. The all-Ireland hot beverage market was worth €243.8m in 2008. The four trends driving market growth are ethics, health, indulgence and convenience. Ethical products are expected to boost the sector in the coming years. 39
December09Forecourt
Focus
Costcutter Scores in Cavan Retail News travels to Cullies in County Cavan to speak to Jim Burke, manager of the Costcutter forecourt. Pictured outside Costcutter, Cullies, Co. Cavan are (l-r): Edward Maguire, Forecourt Assistant; Jim Burke, Manager; and Christina Comiskey, Assistant Manager.
The
Costcutter forecourt store in Cullies, Co. Cavan, opened in 2007 following a significant investment by a local developer that saw a small forecourt on a large site transformed into a premises that could take advantage of the potential trade in the area. Situated north of Cavan town, the shop stands on a busy local road, servicing a number of villages close to the town. “Right from the beginning of this project, we knew the choice of symbol group partner was going to be critical in getting the business off on the right foot,” explains Jim Burke, Store Manager. “We spoke to a variety of symbol groups and found the Costcutter package to be the best for us. The Costcutter image really looks incredible: it’s bright, airy and attractive. Although appearance is an important element of grocery retailing, there is a lot more than that to running a successful shop and for us Costcutter ticked all the boxes.”
40
The Costcutter Group appointed John Wilson as project manager, overseeing the fit-out of the shop, but the group also provided extensive advice, based on their knowledge of how the convenience grocery retail sector was developing. At the time the shop began trading, Costcutter were aware that high end convenience trade was weakening and advised Jim to ensure he had a strong grocery selection and to focus on offering customers good value for money.
Advice & Support “Right from the start of the partnership with Costcutter, we received great advice and support from the group,” Jim enthuses. “Costcutter is a very hands-on organisation and the level of service the group has provided this shop is evidence of how much they value the business of each member of the Costcutter group. It’s very reassuring to have that level of advice and support and as a retailer, it’s exactly what I need in order to offer my customers the best possible shopping experience.” The shop began trading strongly, with its evening trade proving particularly impressive. There is a significant amount of residential housing near the shop and it is also near one of Europe’s largest equestrian centres, both of which provide a regular customer base. As well as a large selection of grocery, Costcutter Cullies offers a full off-licence, a car wash facility, Maxol forecourt, lotto and deli. “We try to make sure we can offer everything customers need in one visit so they don’t have any reason to choose a different location,” explains Jim.
December09Forecourt
Focus
Strong Value Offer
Great Customer Service
Offering value for money is another cornerstone of the shop’s success, and has been since they first opened their doors for business. “We work very hard to maintain and promote value offers across every area of the shop,” Jim notes. “The Barry Group offers excellent promotional offers, as well as generally competitive prices on all products. Apart from the value promotions, we maintain a tight margin on all grocery sales in order to drive volume. It’s a question of maintaining profitability while also offering customers a competitively priced basket of goods. We operate a loyalty scheme in the deli and also run special offers associated with the car wash.” The Store Manager acknowledges that grocery retailing is a very competitive business and there is huge amount of effort involved in managing a business, not just in the shop itself but also in the way the store fits in to the local community. “I am involved in the local Lion’s Club, the Chamber of Commerce, local GAA as well as being an employer in the community,” he explains. “You can’t run a successful local shop without putting in a lot of effort.”
Customer service is another strength of the Costcutter forecourt store. Every single full-time member of staff has been with the shop since it opened, and Jim places great emphasis on staff retention. “Having well trained, friendly staff really distinguishes a shop,” Jim concludes. “All our staff know their jobs well, thanks to a combination of experience on the job and very strong training support from Costcutter and the Barry Group. I put a huge amount of effort into keeping this business running smoothly and so does the Barry Group, so it’s absolutely vital that I have well trained and capable staff operating the business to the highest standards.”
Competing During Challenging Times His comments are echoed by Adrian Durr, Account Manager, Barry Group: “Costcutter and the Barry Group have been busy during the recession, working hard to support our members. The flexibility of our group and the quality of support that we supply has made us a very attractive choice of symbol group partner for retailers looking to compete during challenging economic conditions. “We have had a lot of retailers approaching us looking for a partner that has our hands-on attitude and is willing to provide the high levels of support and advice they need in every aspect of their business and in order to provide their customers with value for money, great customer service and a great shopping experience. As a group, we are delighted to work closely with retailers of the calibre of Jim in order to help their shops and the Barry Group as a whole compete strongly during the recession.” The Barry Group, Jim Burke and all the staff have worked extremely hard over the last two years, and their efforts have been rewarded, as the store has managed to remain competitive and grow its business FACT FILE during a period of Location: Cullies, County Cavan economic uncerManager: Jim Burke tainty. That level of commitment Size: 2,400 square feet will ensure that No. of Staff: 21 full time & part time the business is all the stronger Opening once economic Hours: 07:00-22:30, recovery arrives. Monday-Sunday. 41
December09Finance
Surviving the Cash Crisis When it comes to your business, survival is all about cash, according to David Gleeson, Corporate Recovery Partner with Russell Brennan Keane.
With
the number of insolvencies doubling in the last 12 months, businesses need to concentrate on cash management to survive the next year. It’s no surprise that the number of insolvencies has increased, but the interesting question is how many could be avoided through earlier intervention, particularly when managing cash flow? It may be easy to be wise after the event but you could speculate that a considerable number of insolvencies could be avoided. During the good times, many businesses had good cash flow, even in situations where the core business management disciplines were absent. These disciplines include cash flow management, which in turn includes accurate and realistic projections, tight cost control and collection of debt. “Many businesses put little away for future development or unexpected 42
difficulties as easy access to cheap credit had become the norm,” notes David Gleeson, Corporate Recovery Partner with Russell Brennan Keane, one of Ireland’s leading business advisory and accountancy firms. “Risks weren’t recognised as risks and therefore the problems arose when the ‘dead cert’ gambles didn’t pay off,” he continues. “Many business investment portfolios consisted of little in terms of cash deposits, whilst reserves consisted of equities and property investments that are now almost impossible to cash in.”
It’s All About Cash Poor cash flow management is a primary cause of business failure. Once cash is gone, your business lifecycle is at its end. A business can only run out of cash once. Given that many customers are taking longer to pay or in many cases are not paying at all, this causes acute
difficulties for businesses. “In addition to having a strict policy on eliminating all forms of unnecessary expense, it is critical that all businesses get very serious about collecting their debts,” Gleeson explains. “New customers should be placed on strict credit terms and businesses should have an incentive so customers pay early or even on time by offering discounts. If businesses had adopted these principles earlier, I believe many would be in a better position to weather this storm.” So, how do you protect your business? Suppliers need to be particularly careful before entering into new credit arrangements with customers. The key points to consider include: 1. Credit Terms For all customers, agree specific payment terms and these can include giving a discount to customers who pay upfront or agree
December09Finance
to a regular payment plan e.g., monthly Direct Debit. It should also be made very clear to customers the implications of failure to comply with the agreed credit terms. This could take the form of interest, ceasing further supplies etc. 2. Up-Front Payment Depending on the trade/profession it would be advisable to negotiate an up-front payment prior to supplying the goods or services. 3. Invoice Quickly and Regularly The sooner settlement is requested after the supply of the goods or services, the customer will be more inclined to discharge the sum owing. Smaller regular bills are much easier for customers to cope with than larger, more irregular invoices. 4. Title Where possible with tangible goods, retain title or charge on an asset until payment is made, in particular in relation to larger transactions. Having Reservation of Title clauses in your terms of business is highly recommended.
Early Diagnosis is Critical It is critical to seek advice as early as possible in order to give the business the best chance of working through its difficulties. “A client recently made the analogy that a business in difficulty was similar to discovering a serious illness: the earlier you recognise your business has a problem, the better,” notes Gleeson. “Allowing a business to obtain a correct diagnosis facilitates the correct intervention, gives time to put a plan in place to work through the challenges and provides the greatest chance of survival. “Many businesses wait until it is too late to look for advice and typically, we have seen instances where businesses survival options would be greater had action been taken even a month earlier.” Business owners should also seek early professional advice. “We have encountered many businesses where the situation had gone beyond recovery, with the only option unfortunately being to wind up,” Gleeson explains. “Earlier intervention could have possibly provided alternative solutions.” In addition, reckless trading and fraudulent preference (i.e. preferring one creditor over another) are viewed very seriously: in certain circumstances, you could be held personally liable for part or all the debts of a limited company.
subsidiary of a foreign-owned parent company: “The parent company went into liquidation but the Irish subsidiary was inherently viable. We put together a rescue plan that involved grant assistance from a Government agency, private equity and local management participation. The net result was that the company was saved and a significant number of jobs losses were avoided.” Understanding what the business owner’s plans are for the future is critical to a corporate recovery specialist: they need to ask you that question. “Value and quality of service are issues for all businesses now more than ever,” Gleeson concludes. “With this in mind, your corporate recovery provider will work closely with you to ensure the service is tailored to meet your specific needs and budget.”
About the Author RUSSELL Brennan Keane is one of Ireland’s leading business advisory and accountancy firms, with 50 years’ experience providing professional advisory services to a range of clients in the mid to large corporate market in Ireland, from offices in Dublin, Athlone and Roscommon. For more information, contact David Gleeson. Email: dgleeson@rbk.ie. Tel: 01 6440100 or 090 6480600.
Schemes of Arrangement
5. Define a Payment Schedule If the project is ongoing, the contract should include a due date for each payment, as well as expected deliverables to be completed by each payment date.
When it comes to schemes of arrangement, do businesses survive? “Yes, businesses survive,” Gleeson stresses. “We have been involved in several informal schemes recently. In one instance, the options facing the company were stark: to either reach an accommodation with its creditors or to proceed down the liquidation route. An agreement was ultimately reached whereby creditors / suppliers agreed to a partial write-down of their existing debt. As a result, the business survived and now continues to provide employment and purchases and pays for goods from its creditors.” He also points to another example, where he worked with an Irish
David Gleeson, Corporate Recovery Partner with Russell Brennan Keane.
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December09Shelf
Life
Shelf Life SUPERQUINN is to give away up to €5m to shoppers this Christmas and New Year in the ‘Great Christmas Giveaway’. Shoppers will have the opportunity to receive €50 off their food and grocery shopping in January when they shop in Superquinn in December and again in the New Year. Shoppers who spend €150 or more in a single transaction up to Christmas Eve will receive three Superquinn Christmas Giveaway vouchers totalling €50 which can be redeemed from January 1-31, 2010, in separate transactions. The Crimmins triplets are pictured stocking up on their Christmas shopping to receive €50 off their food and grocery shopping in January. MC² is the new look Consumer & Brands division of Murray Consultants, Ireland’s largest independent public relations and issues management agency. MC² is a full service brand communications agency, with a simple formula - talented people giving powerful brands a clear point of difference, by adding value through cutting edge insights and delivery of great results. “Over recent years, Murray Consultants has significantly enhanced the scale and depth of the services we offer in the area of Consumer & Brands, and this is now at a scale which justifies a stand-alone identity, reflecting this increased range of services,” explained Nicky Crichton, Director of MC². “As a team of multi-disciplinary specialists, our experience enables us to deliver impactful and engaging communications solutions which are built on a clear understanding of our clients’ brand, business and target market.” See www.mcsquared.ie for more. COOKS Academy, one of Dublin’s premier cookery schools, and Des King have created the Dublin Wine Academy in order to offer high quality wine education and to provide WSET accredited wine & spirit courses in the Dublin area. “Unfortunately the Wine Board of Ireland decided to close their doors, but we felt there was still a high demand for wine appreciation courses and the need to supply the full range of wine courses from Basic through to Intermediate and Advanced Certificate courses,” said Des King. “‘The WSET certificates are essential for the Irish Wine Industry to maintain their high standards by having adequately trained staff, especially in retail, marketing, service and buying roles.” Dublin Wine Academy courses begin in the first week of Janurary 2010 and run all year round. Customers can book online at www.dublinwineacademy.com or by phoning 01 214 5002.
THE Knorr Student Chef of the Year competition is back for a 13th year and this time Knorr has turned up the heat on its competitors with a challenge to reinvent age-old traditional Irish recipes. Old family favourites such as bacon and cabbage, coddle and Irish stew will be given a fresh twist of creative seasoning to produce modern, 21st Century Irish recipes that bear the distinguished hallmark of traditional Irish cuisine that Ireland has become famous for. The competition, launched recently in the GMIT catering college in Galway, is open to all student chefs in catering colleges across Ireland. To enter, students must create an innovative Irish recipe for both a starter and main course, using a minimum of two Knorr catering products. Pictured at the launch are Stefan Matz from Ashford Castle, with GMIT students Catherine Mulkerrins and Sam Mulholland.
PICTURED at the launch of safefood’s 2009 Christmas campaign is chef Neven Maguire with Ireland’s most famous bird, Dustin the Turkey, and Dr Gary Kearney, Director, Food Science, safefood. Safefood have launched a free leaflet and turkey cooking timer, available from local butchers, as well as an SMS service, a helpline (1850 404567), a free cooking calculator application for iPhone and have a dedicated section on their website (www.safefood.eu), where viewers can watch video clips of award winning chef Neven Maguire storing, preparing, stuffing, cooking and carving the turkey. 44
PICTURED at the announcement that Drinks Distributor M&J Gleeson & Co. has reached an agreement to provide a supply chain solution in the Republic for the Molson Coors brewing firm’s new Irish operation, are Pat Cooney, Managing Director, Gleeson, and Niall Phelan, Country Manager, Molson Coors. M&J Gleeson & Co.’s supply chain solution will include warehousing, transport and some shared services for the Molson Coors portfolio. Gleeson and Molson Coors already have an arrangement for Cobra beer which will be integrated into the new agreement. In addition, Gleeson will provide services for Carling, Grolsch, Caffreys and a range of world beers.
THE National Newspapers of Ireland (NNI) has announced an expansion of its membership to include the 36 local and regional newspapers owned by its member publishers. NNI Local and Regional Newspapers has appointed Dan Linehan, Chief Executive of TCH Regional Newspapers, as its first Chairman. “The objectives of NNI Local and Regional Newspapers will very much mirror those of NNI, promoting the unique qualities of local and regional newspapers and actively engaging with the legislators on the issues affecting local press,” commented Linehan.
Since launching in 1998 and now with over 300 stores open, the Gala Group is maintaining its number 1 position as Ireland’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 Ireland’s most dynamic retail group, make sure you call Gala first, on Callsave
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