January/February 2010
We passed on the VAT decrease, did you? Marlboro now at 8.40
This advertisement is for the information of tobacco traders only VAT rate has been reduced to 21% from January 1st 2010
January/February10Contents
■ inside view
Looking Forward with Optimism Most of you are probably relieved that 2009 is now well and truly behind us, and are preparing for another tough year in the retail trade. However, 2010 might not be as hard as you think, with the majority of economists and industry experts predicting that Ireland will begin to creep out of recession towards the end of the year. This year could be one of big change for the trade, however, with the news that the Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan TD is to introduce a code of practice for the retail trade, covering primarily retailer/supplier relationships, as well as the appointment of an ombudsman to oversee disputes in the sector. For the full story, see our special news report on Page 4. It is not just Irish retail legislation which is changing, however. Today’s consumer is very different from the customer of just 18 months ago. The latest research into Irish shopping behaviour was revealed at the recent Efficient Consumer Response Ireland Conference, which makes for very interesting reading. See our comprehensive conference report on Page 16. Also inside this issue, we talk to Damian O’Reilly from DIT’s School of Retail Management about the current state of Ireland’s retail industry, from streamlining the supply chain to the evolution of category management (Page 26). Damian discusses the big issues facing the sector in 2010 and predicts possible changes in the months and years ahead. Elsewhere, Jean Smullen reports from the recent NOffLA Awards (Page 19), motoring correspondent Padraic Deane looks at the movers and shakers in the Commercial Transport sector (Page 34), while we’re also giving one lucky winner the chance to win a golfing weekend for two in Dundrum House Hotel Golf & Leisure Resort, Co. Tipperary, on Page 2.
“Over 53 years Kathleen Belton, Editorial & Marketing Director
serving the Irish grocery trade.”
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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Centra Scores on Sponsorship CENTRA is sure to remain top-of-mind with consumers thanks to the news that its Centra own brand range is the new sponsor of Emmerdale on TV3 and, as a result, becomes the first ever own brand range to sponsor a programme on Irish television. The sponsorship involves a three-year rolling contract, worth €400,000 annually. The sponsorship will allow Centra to communicate the scale and diversity of its own brand range to viewers of Emmerdale every weekday night on TV3. And in true Centra style, viewers can look forward to being entertained by the advertising stings around the programme, as own brand products come to life and literally do the talking. “Centra has Star of TV3’s Emmerdale, Viv Hope witnessed a sigpictured in Centra, Parnell Street nificant increase in in Dublin’s City Centre. demand for Centra own brand products across all 474 stores over the past six months as Irish consumers continue to look for good value without compromising on quality,” noted Ray Kelly, Marketing Director, Centra. “Centra own brand offers consumers a saving of at least 20% over its equivalent branded competitor. This sponsorship will allow Centra to communicate the fantastic choice and value which own brand offers to the Irish consumer and bring to life the depth of the range”. Meanwhile, consumers will be delighted with the news that Centra plans to go freebie crazy and give customers a freebie every Friday throughout February as part of Centra Free Fridays. The idea of Centra Free Fridays is simple – consumers purchase a designated item every Friday throughout the month of February in any of Centra’s 474 stores and get a complimentary item absolutely free. To kick things off, Centra offered a free muffin with every cup of coffee bought in Centra stores. “Centra Free Fridays is all about saying a big thank you to our customers by giving them some great products for free across all stores every Friday for a full Weather girls Jenny Lee (right) month,” explained and Sarah Morrissey (left) join Ray Kelly, Marketing Centra to announce the launch of Director, Centra. Centra Free Fridays. 1
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AG ol Aw fing ay fo Wee r T ken wo d
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DUNDRUM HOUSE HOTEL GOLF & LEISURE RESORT You could be the lucky winner of this super competition for a great Golfing Weekend Break at Dundrum House Hotel, Golf & Leisure Resort and in the midst of this recession, we could all do with a free break. The Resort is located in the heart of Tipperary, just outside Cashel, on one of the most picturesque settings you can imagine. This 18th century Georgian Manor oozes old world charm, atmosphere and warm hospitality. The Resort includes a 65 bedroom hotel, contemporary 4* selfcatering holiday rentals, a fine dining restaurant, cosy lounges and an extensive Clubhouse. Challenge yourself to a round of golf on one of Irelands top ranking parklands courses where you can stroll out of the hotel on to the first tee! Afterwards relax in the Health & Wellness Centre with 21M Pool, Jacuzzi, Sauna, Steam Room and Gymnasium. You won’t be disappointed with Cashel and the surrounding area as there is plenty to see and do: Explore the Rock of Cashel; Browse the streets, shops & cafes; Enthusiastic hill walkers have the Glen of Aherlow on their doorstep and there’s plenty more to see and do. The Competition is for 2 night’s accommodation in the hotel with full Irish breakfast each morning, a Table d’Hote dinner on 1 evening of your choice in the Rossmore Restaurant plus 1 round of Golf at the resorts 18 hole Championship course. For details on Dundrum House Hotel Special Offers call (062) 71116 or log on to their website www.dundrumhousehotel.com To be in with a chance to Win this Prize just answer the following question: What famous heritage site is located close to the hotel? Answers on a postcard, together with your name, address, telephone number and email address to Dundrum House Hotel Competition, Retail News, Poolbeg House, 1-2 Poolbeg St., Dublin 2 or email retailnews@tarapublishingco.com. Closing date for entries is March 19th 2010. Terms and conditions apply. Judge’s decision is final. No cash alternative.
Dundrum House Hotel, Golf & Leisure Resort Dundrum, Nr Cashel, Co. Tipperary. Tel: (062) 71116 W: www.dundrumhousehotel.com
In the heart of Co. Tipperary – We’re even closer than you think!
January/February10Contents
Contents January/February 2010
News 4Grocery Code of Practice: Reading Between the Lines.
5Kraft Acquires Cadbury; Barry Group Purchases Carry Out; Retailers Up Advertising Spend.
ECR Ireland Conference 16Irish shopping behaviour
26
has changed significantly as increased financial pressures impact. The recent ECR Ireland Conference explained the changing face of the Irish shopper.
Commercial Transport 34Motoring correspondent Padraic Deane examines the options in the commercial transport sector, from car-derived vans to heavy commercial vehicles.
The Retail News Interview 26In a wide-ranging interview, Damian O’Reilly from DIT’s School of Retail Management puts the current state of Ireland’s retail industry in perspective and predicts future changes.
4 6Retailers Welcome Increased Fines for Tobacco Smuggling; The Benefits of Buying Local? 7Grocery Holding Its Own; Tesco Forecourt Sparks Controversy; Dunnes Stores Challenges Plastic Bag Levy.
16 On The Vine 19Jean Smullen on the
Shelf Life 40All the latest news and
NOffLA Awards 2010, where Gibney’s of Malahide was once again named Off Licence of the Year.
gossip from the trade.
20 Karen Meenan’s News Rack 30 When it comes to your
Shop Profile 14The Cleary family’s MACE store in Dublin’s Clontarf has been transformed from a small local shop into a cutting edge convenience store.
34
18
news rack, niche titles are making their mark in 2010, with partworks proving particularly popular and profitable, writes Karen Meenan.
Regulars 8 Industry News 38 Drinks News 39 What’s New
Sectoral Reports 20 Paper Products 3
January/February10News
Grocery Code of Practice: Reading THE impending arrival of a new code of practice for the grocery sector has been greeted with a variety of reactions. Minister for Enterprise and Employment, Tánaiste Mary Coughlan TD is set to introduce an ombudsman to referee disputes in the grocery sector and intends to introduce the code on a voluntary basis, and later make the code statutory under the merging National Consumer Agency and the Competition Authority. According to Breda O’Brien, spokesperson at the Department of Enterprise, stakeholders in the sector were asked to submit their views on an impending code during the last half of 2009. Issues included the content of a future code, and whether it should be statutory or voluntary. In total, 29 responses were received, from retailers, producers, suppliers, public bodies, commentators and consumers. For some stakeholders, such as IBEC’s Food and Drink Industry Ireland (FDII), the code and an accompanying ombudsman are necessary in order to provide better regulation for business practices between suppliers and retailers.
Paul Kelly, Director, Food & Drink Industry Ireland.
“The existing legislation that is in place - the 2006 Amendment to the Competition Act - is inadequate. There is a growing acceptance, not just in 4
Ireland but across Europe, that there is a need for better and more fit-for-purpose regulation in the grocery sector to ensure balance and a fairness to commercial relationships,” said FDII’s Paul Kelly. The code, however, appears largely a result of the lobbying efforts of suppliers. Minister for Agriculture Brendan Smith TD told a recent IFA conference that the code is intended to regulate the increasing power of the supermarket multiples. But where, then, does this leave smaller retailers? Could they be sidelined entirely, or even pay the price for the business practices of the multiples? Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), believes a code could be as beneficial for retailers as suppliers. “We wouldn’t want it limited to the grocery sector,” he told RETAIL NEWS. “For instance, there should be a body set up for complaints against telephone top-up providers or local authorities for what we consider to be an abuse of a dominant position. If the minister is inclined toward having an ombudsperson, they shouldn’t limit it merely to suppliers of groceries. Anything that affects our business relationships, or suppliers of service as well as product, should be included.” Jennings does not expect this to be a two-way street: small retailers could lodge complaints about suppliers, but not vice versa. “Hypothetically, if there was a complaint against a meat supplier, just because I’m a small retailer, it doesn’t mean I shouldn’t make that complaint to the ombudsman. The meat supplier couldn’t make a complaint against me, because I’m too small. It’s about your market position and whether you are dominant or not.” RGDATA, meanwhile, made their submission to the department in August 2009, arguing the code should address the relationship between smaller retailers and suppliers (since most of the commentary concerned supplier relationships with bigger retailers). Does Tara Buckley, RGDATA Director General, believe the code might protect the interests of smaller outlets?
Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association.
“We’re not interested in protectionism,” she responded. “We’re interested in a level playing field and the ability for people to run their independent businesses. Our concern is more that it mitigates against independent shops. If you’re introducing regulations, ensure they don’t prevent family run businesses from operating.” Smaller retailers tend to have very good relationships with suppliers, added CSNA’s Jennings. “It blows hot and cold,” he said. “Sometimes you find yourself being love-bombed by the suppliers. Other times, you find yourself almost being rejected. It all depends upon what plan the marketers are pursuing. It’s not constant, but by and large, the relationship we have with Irish companies providing into the sector is very good.” Despite ongoing debate about the upcoming code of practice, there has been little conjecture as to why it is needed. Many commentators believe the fall in grocery prices over the last year, largely as a result of consumer debate, has put pressure on Irish suppliers to reduce their prices. The recession and the exodus of shoppers to Northern Ireland has also led to increased pressure on supermarkets, and thereby suppliers, to offer value for money. But is
January/February10News
Between the Lines this reason enough for a code of practice? Retail Ireland’s Torlach Denihan doubts it. “Fundamentally, we just don’t think it’s necessary. It’s likely to result, in all probability, in higher prices,” he told RETAIL NEWS. “Last year, food prices fell by over 8%. We feel it is completely unnecessary to have a code of this sort. We think the only reason it has been introduced is exactly that: prices have been falling. It’s the retailers’ job to deliver best value for their customers and that’s what we’re doing. We think this code will inhibit our ability to do that in the future. It’s our belief that no rationale, with reference to consumer needs, has been introduced to justify bringing in this code. The fall-out will probably be consumer detriment through higher prices that will be the case if this code goes ahead in its full form.” Issues such as Hello Money, however, suggest some supermarket practices are less than competitive. The FDII’s Paul Kelly believes unreasonable demands on suppliers - such as paying for supermarket shelf space - are common. Recent newspaper reports suggest that Tesco has been demanding millions of euro from Irish suppliers to continue stocking their goods. But surely there are often good reasons why a supplier shares a risk on a new product? If a supermarket sets aside valuable retail space, then why should the supplier not share the risk in funding the promotion? At the least, this ensures confidence in the product. “But that is where the market is working properly and effectively,” said Kelly. “The problem is that there are significant instances where the risk is not shared, so payments are being demanded from the supplier and the benefit subsequently incurred isn’t shared equally. The overall intention of the code of practice is to put in place a framework that ensures when there are risks of this sort, where people are going to invest in promotion, those risks and the benefits are conducted in an equitable fashion.” While the code may not adversely affect retailers, the sector still runs the
risk of footing the bill. In the UK, for example, it has been suggested that retailers will fund the ombudsman. “I think the Minister said the costs would have to be born by the retail sector,” said Kelly. “In the UK, the costs are higher because they’re dealing with a much bigger market. I think they were looking at either a penny or half penny on the weekly shop. Over here, it should be fairly miniscule.” Nevertheless, independent representatives balk at the idea of funding a code. “Business is extremely tough,” said RGDATA’s Tara Buckley. ”There can be no additional costs put on retailers. We are asking government that they look at some of the costs they have control over and reduce them.”
Kraft Acquires Cadbury KRAFT Foods have purchased British chocolate-maker Cadbury in a $19.6bn (€14.03bn) deal, creating the world’s biggest confectionery company. The deal partners brands such as Cadbury’s Dairy Milk chocolate with Kraft’s Milka, Toblerone and Terry’s chocolate. Cadbury Ireland has yet to announce the impact of the deal on jobs, since it has yet to introduce an integration plan. However, a Cadbury spokesperson told RETAIL NEWS that Cadbury have been responding to retail customer queries and have given assurances that the high standards that they have come to expect will continue. “They’re dealing with queries on a one-to-one basis,” added the spokesperson.
Barry Group Purchases Carry Out BARRY Group has purchased the Carry Out off-license business, adding 52 specialist off-licenses to its retail stock of Costcutter, Buy Lo and Quik Pick brands. Carry Out, previously owned by GWL, claims a 13.7% stake of convenience alcohol sales.
Tara Buckley, RGDATA Director General.
CSNA’s Vincent Jennings adds: “I don’t think it was ever considered that we as independents should be funding this. The problem is not caused by us. Because of the economies of scale, we can not force anyone else to pay us for product and do all the things that are being alleged at multiple level. Why should we pay for something we’re not the cause of?” Which side of the court will the code of practice fall? This remains to be seen. But for now, as far as small retailers are concerned, the ball is still up in the air.
Retailers Up Advertising Spend WHILE the majority of consumer brands cut back on advertising spend throughout 2009, retail groups went the opposite direction, with SuperValu (€18m), Tesco (€16m) and Dunnes Stores (€12m) the big spenders. According to figures from Nielsen Media Research, Ireland’s top 25 advertisers cut their budgets by 5.6% to €284m, while SuperValu upped its spend by 19% and Dunnes by 10% Tesco’s €16m spend was actually a drop of 22%. 5
January/February10News
Retailers Welcome Increased Fines for Tobacco Smuggling RETAILERS Against Smuggling, the representative group for Ireland’s tobacco retailers, has welcomed the Government’s decision to increase the penalties for smugglers but warned that more needs to be done. The recently introduced Finance Bill has dramatically increased the maximum fine that can be handed out a person caught smuggling cigarettes into the country. The maximum fine before today was fine €12,695 but now stands at €126,970. “Our whole organisation broadly welcomes the reviews the Government has made,” noted National Spokesman for Retailers Against Smuggling, Benny Gilsenan. “They have finally listened to the calls from our industry to tackle the issue of tobacco smuggling. Tobacco is a huge part of our income and with
increasing numbers of people purchasing their cigarettes from the black market, our industry is suffering badly. Paltry fines and sentences meant that there was no deterrent for these people not to smuggle into the country.”
Benny Gilsenan, Retailers Against Smuggling.
The hike in fines was also welcomed by ITMAC (Irish Tobacco Manufacturers
Advisory Committee). A spokesperson for ITMAC stated that “the challenge for Government now is to ensure that enforcement is a priority and that tougher penalties are handed down to those found guilty of cigarette smuggling and involvement in this illicit trade that is prevalent throughout towns and communities across Ireland.” Also welcoming the change, Vincent Jennings, CSNA CEO, urged all arms of the State, Customs, Revenue and the Office of Tobacco Control to ensure that vigilance in detection and prosecutions continue: “The Irish Exchequer has been deprived of hundreds of millions of euro in excises over the past number of years; criminal gangs and opportunists have developed a sophisticated distribution network that requires a dedication from the Authorities in dismantling.”
The Benefits of Buying Local? ic recovery,” he said. “The current volaSHOULD Ireland’s food be Irish? That tile price environment has led to many was the question debated at the open consumers ranking price more impormeeting organised recently by the tant than quality. Although Ireland’s Food Safety Authority of Ireland’s high domestic cost base is improving, (FSAI) Food Safety Consultative competition from international supCouncil. The meeting provided an pliers is intensifying. Approximately opportunity for a discussion on the 151,500 people are directly employed benefits and disadvantages to consumin the agri-food sector and therefore, to ers who buy food produced in Ireland protect livelihoods, the food industry and the current legislation in place to must be seen to fight back, and hamregulate food labelling, whilst also givmer home the importance of buying ing the general public an opportunity Irish to the consumer.” to see the workings of the Food Safety Raymond O’Rourke, Food and Consultative Council. Consumer Lawyer and member of the Speakers at the event included: Taste Council, argued that Irish shopJim Power, Love Irish Food; Raymond pers are increasingly putting more O’Rourke, Food and Consumer Pictured at the FSAI Food Safety emphasis on the importance of inforLawyer; Dermott Jewell, Consumers Consultative Councils 2010 open meeting mation on food labels, and that legislaAssociation of Ireland; and Margaret to discuss the position for and against the tion regarding country of origin should Jeffares, Good Food Ireland. merits of buying Irish food are (l-r): Jim Power, Chair, Love Irish Food; Veronica be harmonised across the EU, allowDelegates attending the meeting heard that in the current economic Campbell, Chair, Food Safety Consultative ing consumers to make more informed climate, recent pressures placed on Council; and Dermott Jewell, Chief Executive, choices. Consumers’ Association of Ireland. “Studies conducted by Bord Bia the consumer, including wage cuts, have shown that Irish shoppers are Jim Power, Chairman, Love Irish tax increases and cutbacks in pubnot just claiming an interest in food proFood put forward evidence supporting lic expenditure, have made consumers duced locally, they are increasingly buythe benefits to the state of the economy increasingly price sensitive, and as a ing local produce, with a steady increase of encouraging people to purchase Irish result price trends for food in 2009 had in the numbers purchasing Irish prodproduce. “The agri-food sector has an fallen by 7.8%, with non-alcoholic beveructs on a weekly basis,” O’Rourke noted. important role to play in aiding economages falling by 11.7%. 6
January/February10News
Grocery Holding Its Own RETAILING has taken multiple punches in recent months. Principles Clothing went into recession, 27 3G mobile phone stores closed overnight, and Debenhams’s let 170 staff go. When high profile retailers make these kind of decisions, it is not difficult to imagine the tough times facing small retailers. According to Marie Hunt, Director of Research at CB Richard Ellis, 200 retailers went bust last year, and a similar number are likely to follow suit in 2010. However, Hunt believes the worst areas hit have been high end consumer goods such as clothing and jewellery. While grocery has been impacted in terms of a fall in the average spend, or people switching allegiances from one brand to another, trade is holding up relatively well in the sector. Hunt attributes this optimism, in part, to the VAT rate cut from 21.5% to 21%, cuts in alcohol excise duties, coupled with the UK VAT rate going up.
Also, retailers like Aldi, Lidl, and Tesco, are continuing to thrive in the recessionary times. “Lidl opened 11 stores last year,” she said. “Aldi opened between 12 and 15 stores. They’re all still looking to acquire land and sites to establish new premises. They haven’t gone through the downturn that everybody else has. They’ve actually seen the opposite effect because people are going for cheaper brands and own brand products in this climate. In the retail sector as a whole, there are glimmers of light.” Nevertheless, ambitious expansion plans will be put on hold over the year ahead. Despite a €1 billion investment in Dublin’s Liffey Valley shopping centre, for example, we are unlikely to see movement in the short-term. “Planning applications are in place and being progressed to develop and extend all these centres, including Dundrum and Blanchardstown, but nothing will go on site until such time as
Marie Hunt, Director of Research at CB Richard Ellis.
funding frees up in the banking system,” said Hunt. “They’ll just sit on ice for the time being. A lot of them will have completion dates of 2013, 2014, 2015. They’ll be pushed back further now. “There are three small shopping centre schemes to open in Ireland this year,” she added. “We don’t see anything else around the country. On the retail park side, there are no schemes due to open in 2010. The taps have been turned off on development in all sectors.”
Tesco Forecourt Sparks Controversy A NEW Tesco filling station planned for Kilrush in County Clare has come under fire after local retailers claimed the outlet would result in the closure of a number of petrol stations and the loss of 43 jobs. Alongside RGDATA, the Irish Petrol Retailers Association (IPRA) objected after Kilrush Town Council granted planning permission to build the four-island petrol station. According to IPRA spokesperson, David Blevings, there is an increasing threat from Tesco and other supermarkets to small retailers.
“Our main issue is that these supermarkets can cross-promote and that’s to the detriment of the smaller service station,” he told RETAIL NEWS. “A smaller service station makes most of its money
on its retail offerings, not petrol sales, so these supermarkets effectively cripple the smaller operator. In the past, this has decimated the local area and we’ve made that case in this and other planning appeals.” From the perspective of local town councils, however, larger supermarket service stations often create more jobs that they threaten. Blevings admits it can be a difficult call for local councils, but the prospect of “supermarket villages”, he said, will be to the detriment of everyone.
Dunnes Stores Challenges Plastic Bag Levy DUNNES Stores has brought a High Court challenge against the Revenue Commissioners for a tax assessment of €36.4m, based on the levy for plastic shopping bags. The retailer claims that the Revenue Commissioners’ tax assessment, which covers a four-year accounting period, includes bags which are not subject to the Government levy, as the bags in question were used in the company’s Northern Ireland stores and
were also used for purposes other than by customers at the till. Dunnes Stores is seeking to quash the assessments and claims that the Revenue Commissioners are acting “in breach of natural justice and fair procedure by refusing to provide details for the basis of the assessment”. Dunnes is seeking a further declaration that any levy imposed under the 2001 Act can only apply to plastic bags which are suit-
able for use by customers at the point of sale, and not to other forms of plastic bags used for wrapping or hygiene. Meanwhile, Dunnes has been ranked at number 231 in a survey of the world’s top 250 retailers, published by Deloitte, who estimate that Dunnes Stores enjoyed 2008 sales of approximately $3.5 billion. Wal-Mart remained top of the retail leaderboard, with 2008 sales of $401 billion. 7
January/February10Industry
News
Superquinn Links with Irish Companies FIVE of the 12 participating companies in the Enterprise Ireland/Bord Bia/Superquinn Supplier Innovation Development Programme have either succeeded in achieving new product listings with the retail multiple, or are actively engaged in discussions to achieve listings in the near future. This marks a very significant development for these companies, and for their potential to develop their business further, both in Ireland and in export markets. “Sourcing the very best in Irish food is something we take very seriously at Superquinn, and we were greatly impressed with the quality of the products from the participating companies,” noted Bruce Langlands, Superquinn’s Head of Product Development. Pictured are Deirdre Hilliard of Just Food, Anne Bradley and Alan Bradley of Taste a Memory, Sarah Browne of Browne’s Soups, Alan Kingston of Glenilen Farm and Hyat Syed of Kohinoor Foods.
Export Growth to Resume in 2010
Quality Lamb from SuperValu
A SUSTAINED decline in the value of Sterling, combined with the economic downturn and severe difficulties in the global dairy market, created unprecedented challenges for Irish food and drink exporters in 2009, according to Bord Bia’s Export Performance and Prospects report. Pictured at the event are Aidan Cotter (right), CEO, Bord Bia, and Dan Browne (left), Chairman, Bord Bia. The value of Irish food and drink exports declined by 12% last year, or by just under €1 billion, to stand at €7.12 billion. However, there are indications that export values are now beginning to stabilise and Bord Bia predicts some recovery in the year ahead. “The prospects for 2010 point to a return to growth for Ireland’s food sector,” according to Dan Browne. “The potential for stronger export revenues from the key dairy and meat sectors, and investments by prepared food companies to broaden their market presence on the Continent, will help exports as 2010 progresses. However, developments in Sterling and consumer sentiment remain critical.”
SUPERVALU has announced that it is the first retailer in Ireland to introduce the Bord Bia Quality Assurance Scheme for Lamb, which offers SuperValu shoppers assurance on both the quality and origin of all lamb purchased in-store. SuperValu is the biggest seller of Irish lamb in the country and one of the biggest supporters of Irish sheep farmers. Pictured at the launch of Musgraves Winter Lamb are Donal Horgan, MD, Musgrave Retail Partners Ireland, with Eamon Holwell, Trading Director, Musgraves, and Margaret McCarthy, Sector Manager of Bord Bia.
John Player Launches New Corporate Identity JOHN Player have launched a new corporate identity. With a trading environment that has changed dramatically, tobacco has become a very challenging category. In response, John Player has recommitted itself to the business of tobacco, and more importantly, to its consumers. A signpost to this commitment is the company’s new corporate identity. The energy and dynamism of the John Player corporate brand are captured in the gold ‘flame’ devise of the A, while the Blue portrays trust, loyalty, and expertise. The biggest change is the absence of the ‘& Sons’. “The name ‘John Player’ has great resonance with retailers and adult smokers alike and the new simplified identity will be a clear and powerful symbol that celebrates 8
our heritage, but looks forward in a modern and meaningful way,” remarked Andrew Meagher, Managing Director, John Player. Meanwhile, responding to the Minister of Finance’s announcement that there would be no excise increase on tobacco and a reduction on VAT, John Player has reduced prices across its range of brands, providing better value for consumers, while maintaining percentage customer trade margins.
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January/February10Industry
News
Scally’s Wins Inaugural Seafood Counter Award
PICTURED receiving the inaugural Bord Iascaigh Mhara (BIM) Seafood Circle award for ‘Supermarket Seafood Counter of the Year’ are Eugene Scally of Scally’s SuperValu, Clonakilty, Co. Cork; and Michael Walsh, Fresh Food Manager, Counter Manager Milos Kormek and Jason Whooley, CEO. This new and prestigious award is only presented to seafood retailers that exceed the stringent high
standards set by the Seafood Circle, an initiative developed by BIM which recognises and supports retailers and hospitality outlets that consistently offer top quality seafood to their customers. “On behalf of all at Scally’s, I am thrilled to receive this award. Through our membership of the BIM Seafood Circle, we have not only received recognition for our hard work but we have benefited from advice and
assistance along the way to ensure we are changing with the times and delivering innovative solutions and the highest standards at our seafood counter,” noted Eugene Scally. BIM announced their full list of Seafood Circle members for 2010 across the hospitality and retail categories. The total membership now stands at 175 nationwide, with 98 hospitality, 41 Seafood Specialists and 36 Supermarket Seafood Counter members demonstrating that standards are rising every year. A growing number of supermarkets are achieving membership and SuperValu, in particular, have worked closely with BIM’s Seafood Circle team and as a result, 11 new SuperValu stores have now
become members of the prestigious Seafood Circle. Meanwhile, the Seafood Centre @ Galway Bay Seafoods lifted the inaugural Bord Iascaigh Mhara (BIM) Seafood Circle Award for ‘Seafood Specialist of the Year’.
Pictured receiving the BIM Seafood Circle Award for ‘Seafood Specialist of the Year’ from BIM’s Business Development and Innovation Manager, Donal Buckley, are John and Noel Holland of the Seafood Centre @ Galway Bay Seafoods.
PJ Carroll Reduces Tobacco Prices
Flahavan’s TV and Radio Campaign
PJ CARROLL has responded to the budget by reducing the Retail Selling Price for its well-known tobacco brands. PJ Carroll is passing on the VAT reduction to consumers and has issued a revised price list. “It’s been a difficult trading year in the retail sector and the tobacco category is not immune. We believe passing on the VAT reduction is the right thing to do at this point in time,” noted Toby Granwal, General Manager. “Anything we can do to help stem the ever growing tide of consumers choosing to purchase on the black market has to be worthwhile. We are very pleased to make this reduction and at the same time maintain retail cash margins.”
FLAHAVAN’S is back on the air with a new TV and radio advertising campaign. The two animation-style TV ads, entitled ‘Cold Mornings’ and ‘Whatever Time You Have’, are set in a contemporary, busy early morning household setting. They feature Flahavan’s Progress Oatlets and its highly successful Microwaveable Quick Oats Range in a drum, sachet and portable porridge tub. The advertising campaign started in January, with an overall spend of almost €255,000.
Forecourt Owner Fights Back on ‘Drive-Offs’ WITH a surge in the number of ‘drive-offs’ across the country, one petrol station owner in county Cork has refused to take it lying down. Grandon’s Petrol Station installed the aptly named ‘Big Brother’ system, which targets potential thieves before they fill up, as well as reporting new perpetrators to the local Gardaí immediately. Martin Grandon, owner of Grandon’s of Glanmire, noted a surge in the number of cases of ‘drive-offs’, whereby a motorist drives off a forecourt without paying for the fuel. He installed the country’s first Automatic Number Plate Recognition (ANPR) system to help reduce the number of drive-offs on his garage forecourt. The system tracks any vehicles entering the forecourt, following the vehicle and motorist with high-speed digital cameras. The ANPR system kicks in once the motorist picks up the nozzle. It electronically reads the number plate and simultaneously compares it with a ‘blacklist’ database. If it matches any of the registration plates on the list, the cashier is immediately notified and can stop the pump from dispensing fuel. The ‘blacklist’ contains a list of known offenders, as well as customers who have a record of being aggressive or abusive to staff in the past. 10
January/February10Industry
News
Persil Supports Ireland’s First Mud Run PERSIL is proud to support Ireland’s first Mud Run in aid of MS Ireland, which takes place on Saturday, February 27, at Mondello Park, Naas, Co. Kildare. The 5km course, normally used for off-road driving, will take participants through fields, mud pits, water holes and over a series of obstacles guaranteed to leave them muddy and smiling. Everyone from first-timers to serious athletes, male and female,
are encouraged to join in the fun and get down and dirty for MS Ireland. Registration for Mud Run is now open at www.mssociety.ie, and participants are asked to raise €150 before taking part in the event. Pictured at the launch of Mud Run with TV celebrities Sinead Desmond and Amanda Brunker are (l-r): Dermot Walsh, Product Group Manager at Unilever, and David Allen of MS Ireland.
Freshways Healthy Ways Range THE new Healthy Ways range of low calorie sandwiches and wraps from Freshways offers a wide choice of full-flavoured food, yet with no more than 3% fat, less than 300 calories per pack and less than 1.8g of salt per pack. Also no artificial colours and flavours, no hydrogenated fats are used. The new range consists of Chicken Salad, Ham Salad, Egg Salad, and Chicken & Stuffing Sandwiches, as well as Chilli Wraps and Cajun Chicken Salad. According to new research by Freshways Healthy Ways, 32% of respondents skip lunch regularly, with 80% admitting this affects their work, implying that employees in Ireland are putting their health at risk as a result of long hours, poor diets and lack of exercise. “Our aim with our Healthy Ways range is for people to start enjoying lunch again and have no compromise on taste,” notes Karen Hurley, Freshways Brand Manager. “It’s a convenient food that does not skip on quality. We recently rebranded this range, so it now includes food labels and GDAs enabling people to readily see what they are eating, which is perfect for those on a diet or health conscious individuals. The range has a variety of low calorie and low fat sandwiches,
Pictured at the launch of the new Freshways Healthy Ways range enjoying lunch on the go at the office are Georgia Salpa (left) and Laura Birmingham.
wraps, and salads, which are perfect for a fresh and healthy lunch on the go.” For more information, see www.freshways.ie.
New Sure Natural Minerals SURE Natural Minerals, the new anti-perspirant range for women from Ireland’s number one female deodorant brand, have been formulated in response to skin conscious consumers and women’s growing interest in products with natural ingredients. Available in both anti-perspirant and roll-on format, Sure Natural Minerals offers 48-hour odour protection technology as well as absorbent natural minerals which allow skin to breathe. 12
Sure Natural Minerals is available in two stunning fragrances that embody the natural elements: ‘Fresh’, with extracts of olive leaf and pink pepper, and ‘Pure’, infused with orange blossom and cranberry. The Sure Natural Minerals launch will be supported throughout the year with heavyweight through the line marketing activity including TV, outdoor, print, online and PR investment.
Restaurant Quality Ribs… …at Retail Prices. Succulent Fully Cooked Pork Ribs Available in a Range of Flavours
New Product Launch Pork Fillet in BBQ Flavour Sauce & Glaze and Piri Piri Sauce & Glaze. The Most Tender Meat Cooked to Perfection
®
“Great taste at your fingertips”
Ribworld, Carrigeen Industrial Estate, Clonmel, Co. Tipperary. T: 052 6181863 F: 052 6170615 Email: info@ribworld www.ribworld.ie
January/February10Shop
Profile
Growing with the Community The Cleary family’s MACE store in Dublin’s Clontarf has been transformed from a small local shop into a cutting edge convenience store.
Pictured outside the Clontarf store are (l-r): John Tully, MACE Retail Operations Advisor, with store owner Fred Cleary.
Fred
and Mary Cleary have been running a local shop in Dublin’s Clontarf for almost 30 years, and their son, Darren, has been involved in the family business all his life. Cleary’s had always traded as a fully independent retail outlet, but two years ago, Fred and Mary decided that the 600 square feet store wasn’t reaching its full potential. The couple decided to invest in increasing the size of the shop in partnership with a symbol group. In late 2007 and early 2008, Ireland’s economy was in a much healthier state than it is today. As the project progressed, the family saw Ireland go through the sharpest recession in the history of the state, which could have made the development a very stressful venture. But with the support of MACE and the team at BWG Foods and a huge amount of effort from the family themselves, the shop has been transformed from a small local shop to a cutting edge 21st century community convenience store.
Double the Floor Space The project saw the shop double in size, to 1,200 square feet, while adopting the latest MACE image inside and out. The deli was expanded, the ambient grocery offering has increased, fresh fruit and vegetables have become a strong focal point in the shop and old equipment has been replaced with the most modern, energy efficient and cost saving versions available to the modern grocery retailer. 14
“When we decided to make a significant investment and redevelop the shop, the economy was still doing well. We approached a number of symbol groups and they all thought we had a good location and a lot of potential,” Fred tells RETAIL NEWS, “We already had a good working relationship with BWG because of our wholesale purchases, and we were keen to work with one of the BWG symbols.”
Maximising Potential The Clearys decided on MACE as their symbol group partner and they haven’t looked back since. MACE offered
January/February10Shop
expertise on how to maximise the potential created by increasing the size of the shop and worked very closely with the family during construction and fit-out. “The people at MACE were great throughout the project,” stresses Mary. “They provided us with a lot of help and advice. The group also remained positive as we saw the economy go from bad to worse. That really reassured us, because it seemed that we had made the decision at a very bad time.
Profile
shop, complementing the fresh, clean MACE image. Not only were Fred, Mary and Darren delighted with the new look of the shop, their regular customers were so happy with the new image that they quickly began referring to it as “their” new MACE. Doubling the floor space meant a radical transformation to the way the shop functioned. The Cleary family is now competing for basket shoppers, with an enhanced selection of ambient grocery and fresh food, while strong signage from MACE allows the Cleary family to heavily promote their value offers. Offering value to today’s customer is critical and MACE provide really strong offers that are heavily promoted on national radio stations, so the store benefits from the extra footfall this generates. The new-look store also targets high convenience customers through the greatly improved deli facility and enhanced tea and coffee offering. Indeed, turnover in the shop is already above where it was before the start of the project.
Strong Support
We continued to trade throughout the development, which was very difficult, as we had to work with reduced space in the shop as we redeveloped it. However, it was something we were very keen to do because we had a lot of longstanding local customers and we did not want to force them to shop elsewhere. In the end, difficult as that was, I think it really stood to us, because not only did we avoid losing all our customers, it also got the people coming into the shop very involved in the project and they were really interested in how the work was progressing and how the shop was changing.”
Complete Transformation The redeveloped shop opened its doors on December 16, 2009, and it was quite a transformation. The larger windows allow more natural light into the
“All the Cleary family have put a tremendous amount of effort into getting this project completed and we at MACE have tried to match that commitment on an ongoing basis, not just during the development, but as the shop has started trading,” summarises John Tully, MACE Retail Operations Advisor. “The family have been trading in the community for many years and they have a very loyal customer base. They are extremely competent retailers and we work closely with them, offering suggestions and listening very closely to their feedback. It’s a privilege to work with retailers of their calibre and their hard work and dedication helps the MACE Group, as much as our support helps them.” The Cleary family’s hard work and dedication, alongside the support and expertise of the MACE Group, has seen them transform their store and offer the residents of Clontarf a local shop that will FACT FILE meet all their Owner: Fred, Mary & Darren Cleary needs, not just Location: 20 St. Gabriel’s Road, Clontarf, D3 throughout the Size: 1,200 square feet current ecoNumber of nomic situaStaff: 9, full time & part time tion but on into Opening the inevitable Hours: 08:00-19:30, Monday-Saturday; recovery that will 09:00-13:30, Sunday. follow. 15
January/February10ECR
Ireland Conference
Meet the New Irish Shopper Irish shopping behaviour has changed significantly as increased financial pressures impact. The recent ECR Ireland Conference explained the changing face of the Irish shopper.
A significant
number of Irish shoppers (42%) intend on buying more Guaranteed Irish products over the coming 12 months according to new research from Behaviour and Attitudes. New insights into the changing Irish shopper were revealed at the Efficient Consumer Response (ECR) Ireland Annual Conference, held in Dublin recently, where over 150 retailers and manufacturers heard how increasing financial pressures has resulted in Irish shoppers changing their shopping behaviour as they look for better value for money. Delegates also heard how retailers lost €453m in 2009 through stock mismanagement or theft. The ECR Ireland Holistic Shopper Research 2009 was conducted by Behaviour and Attitudes during October and November 2009 and is the most recent and comprehensive insight available on Irish shopping behaviour. 16
Some of the top-line insights that it revealed are: • 42% of Irish shoppers intend on buying more guaranteed Irish grocery products during the next 12 months. 36% expect to buy less convenience meals. • During 2009, shoppers made more shopping trips each week to more shops. They also spent longer in each store than in 2008 but still spent less in terms of money. • People are spending increased time at home and this is reflected in a significant increase in the range and variety of eating and drinking occasions. • A quarter of all Irish shoppers have grocery shopped in Northern Ireland in the past 12 months, with non-food items representing the greatest attraction. • Over the past 12 months, shoppers are reporting significant increases in buying fresh food and eating away from the home less.
• As people shop around for better value, the proportion of trips habitually conducted at the same retailer each week dropped dramatically in 2009, with a quarter now spreading their business across three or more different retailers each week. • Compared to 2008, significantly more time is now spent on main weekly shopping and bulk buying trips, as shoppers spend time seeking out bargains. The greatest perceived improvement in value for money is for fruit & vegetables and toiletries. “This research has confirmed that, while people have been deeply affected by the recession, they are by no means down and out,” stressed Ian McShane, Managing Director of Behaviour and Attitudes. “Shoppers have been busy seeking out greater value for money, whether by way of visiting more retail outlets than ever before in a typical
January/February10ECR
their thought processes in-store, explaining how the key motivating factors are in-store visuals (15%), deciding on products in-store (21%), pre-prepared shopping list (34%) and memory/force of habit (58%). He went on to highlight the differences in groceryrelated behaviour in the last 12 months and predicted the likely changes in behaviour over the coming year. “More than ever, we need things we can trust, and this extends to the brands and retailers we use, and the extent to which they are seen to act as partners in helping us navigate the challenges ahead,” he noted.
Pictured at the ECR Ireland Annual Conference are (l-r): James Wilson, Trading Director, Superquinn and Retailer Co-Chair, ECR Ireland; John Casey, Managing Director, Allied Food & Supplier Co-Chair, ECR Ireland; and Colin Peacock – Shrink & Store Operations Improvement, P&G and Co-Chair ECR Europe Shrink Workgroup.
week, or availing of a myriad of instore offers and special promotions. The net effect has been that the average shopper has reduced his or her grocery bill by more than 10% yearon-year, a trend which is likely to continue into 2010 and beyond.” Ireland’s 2.2m grocery shoppers make on average 3.1 grocery shopping trips per week, with the total number of trips spread fairly evenly across the seven days of the week, across all times of the day (9am-9pm), spending on average 26 minutes in-store, and €124 per week on all grocery items. All in all, grocery shoppers during 2009 were making marginally more shopping trips per week, spending a couple of minutes longer in-store, yet spending €18 less per week. McShane also examined why consumers choose certain shops, and
Reaching the Irish Shopper David Berry, Business Group Director, TNS Worldpanel Ireland, and Ken McIntyre-Barn, General Manager, Glendinning Ireland, advised delegates on how to promote effectively and efficiently to the Irish shopper, highlighting the growing numbers of ‘deal hunters’ amongst
Ireland Conference
Irish consumers. Meanwhile, Mark Hogan, MD of Owens DDB Group, gave his expert view on advertising in Ireland today, predicting advertising trends for 2010. He emphasised how it’s not what you say, but how you say it that will effect your communications with your customers. According to Hogan, the future lies in creating brands “worth talking about”, multi-faceted brands open to individual consumer choice and interpretation and also in the ability to activate in-channel by recognising retailers as marketing partners. He explained that the most effective brands will be those that demand the least of us, advising brand owners to try new things, to re-invent and to be brave, citing examples of innovative campaigns throughout 2009 that proved extremely effective.
The Shrinkage Issue Another speaker at the Conference, Adrian Beck, Reader in Criminology at the University of Leicester, outlined how some recent research had shown that perhaps as much as €453m may have been lost by Irish retailing businesses as a result of operational failures. Co-presenting with Colin Peacock, Director of Shrink & Store Operations Improvement, P&G, and co-chair of the ECR Europe Shrink Workgroup, he noted how any fault in the design, implementation, operation, monitoring, control or
What factors influence consumer’s store choice? 17
January/February10ECR
Ireland Conference
The motivating factors for choosing a particular product or brand.
review of processes and procedures used within the retail environment may lead to shrinkage at any point in the ‘supply chain’ – from point of manufacture to point of sale. “Theft, damage and error are very damaging for any business but there are many ways to intervene to deliver improvements for a typical retailer,” he revealed. “Reducing shrinkage by 50% can grow bottom line profits by over 20%. Shrinkage is one of the last free lunches on the table.”
Retailer/Supplier Co-Operation Meanwhile, Declan Carolan, General Manager of ECR Ireland, stressed the great appetite from retailers and suppliers within the food & drink industry to work together to fulfil consumer wishes better, faster and at less cost. Consequently, ECR Ireland aspires to advance the standards of category management in Ireland and to improve the management processes associated with shrinkage, data & supply chain management.
Improving Data Management Also speaking at the Conference, GS1 Ireland Chief Executive, Jim Bracken called on the retail grocery sector to finally commit itself to addressing issues related to poor quality data management, which he claimed have been a serious obstacle to efficient supply chain operations for many years. “Our research in both Ireland and the UK indicates that the size of the data quality problem is far worse than 18
and require more information. “The time has arrived for the Irish retail sector to address the data quality issue head-on, and reap the considerable benefits,” stressed Bracken. GS1’s proposed solution to overcome such challenges lies in the industry adopting global data synchronisation (GDS) techniques by embracing a new industry standard for managing product data where one single, accurate, master source is used by all parties. The organisation is confident that such a deployment will lead to greater efficiency in supply chain processes and more effective collaboration between trading partners. In the future, it will be possible for consumers to use their mobile phones to scan the product barcode to check for allergen and nutritional information before making a purchase.
expected, with data shown to be inconsistent between supplier and retailer in over 80% of instances,” Bracken explained. “It is estimated that it will cost UK retailers and suppliers at least Stg£700m over the next five Other Speakers years, and a further Stg£300m in lost Other speakers at the conference revenues, due to mismatches in data.” included Superquinn Trading He revealed that working with Director, James Wilson, and John data that is inconsistent between supCasey, MD of Allied Foods, both plier and retailer has a severe cost co-chairs of ECR Ireland; George Lee, impact on the industry in three main who presented an overview of the areas: Irish economy in 2010; Susan Darcy, • the cost of manual workarounds Category & Customer Marketing to source missing data and correct Manager at Unilever Ireland, who errors; spoke on Unilever’s successful • administrative shrinkage costs ‘Partners for Growth’ category in areas such as ordering and management campaign; and Gerard invoicing; Gaffney, National Transport Director • lost consumer sales through shelf with Allied Foods, and Charlie Cahill, stock-outs. MD of Bluetree Systems, who gave an Given the increasing demands of insightful presentation on reducing consumers for better product inforcarbon emissions and costs in the mation and labelling for nutrition, supply chain. health and lifestyle, and pending European legislation related to packaging and the environment, the management of product data by suppliers and retailers is even more challenging. Bracken states that the volume of data that grocery retailers will need to hold for the products they sell is likely to increase from an average of 66 product attributes today to an estimated 250 attributes in future years. Some 40% of consumers have specific dietary needs George Lee addresses the ECR Ireland Conference on the Irish economy in 2010.
January/February10On
the Vine
Gibney’s Named Off Licence of the Year Gibney’s of Malahide was once again named Off Licence of the Year at the NOffLA Awards.
After
a very tough year for the off licence trade, it was best foot forward for independent off licences with the National Off Licence Association Awards, now in their 14th year of recognising off licences around the country that offer exceptional service to customers and demonstrate excellence in retail standards. The Off Licence of the Year Awards are sponsored by a range of wine, beer and spirit companies, including Wyndham Estate, Hennessy, Smirnoff, Faustino and Budweiser. The top 50 independent wine retailers from all over Ireland were out in force to receive their certificates of either ‘Standard’, ‘Merit’ or ‘Excellence’, based on their performance during 2009. Many of the key importing companies were represented, including: Kieran Tobin, Communications Director, Irish Distillers/Pernod Ricard; Lynda Cody, Wine Brand Manager with IDL/Pernod Ricard; Maureen O’Hara, Terry Pennington and Julia Kennedy of Gilbeys; Willie Dardis of Ampersand; Kevin Behan, Edward Dillon & Co; Robert and Christine Smith, Mackenway Distributors.
Award Winners The overall winner of the 2010 Award for the second year running was Gibney’s Off Licence in Malahide, Co. Dublin. Tony and Siobhan Gibney, Ann Moran and Pat Carroll were on hand to accept the award. This is the third time that Gibney’s have won the award, previously won by them in 2005, 2009 and now for the third time in 2010. The Awards ceremony also included many familiar faces from the off licence world, who appeared on the podium for a second time or more. Anne Marie Holland of Holland’s Fine Wines in Bray, Co. Wicklow, received the award for Leinster Off Licence of the Year for the fourth year in a row. Dicey’s Bottle Store, Ballyshannon, Co. Donegal, were another repeat winner of the Connaght/Ulster Off Licence of the Year award, while Damien Sherlock and Joe Doyle of Donnybrook Fair were proud recipients of the Food Retailer Off Licence Award for the second year in a row. O’Donovan’s in Cork were also winning on the double, lifting the Specialist Off Licence Retailer title for the second time.
The top 50 independent wine retailers from all over Ireland were out in force at the NOffLA Awards to receive their certificates of either ‘Standard’, ‘Merit’ or ‘Excellence’, based on their performance during 2009.
Public Service ID Cards Speaking at the launch Jim McCabe, Chairman of NOffLA, raised the issue of the proposed new public service ID cards: “NOffLA welcomes the proposed new public services ID cards for over-16s and we call on the Minister for Social and Family Affairs, Mary Hanafin, to ensure this ID card will provide for the inclusion of date of birth on all cards issued to under 21s to take into account any alcohol purchases to under 21s.” The winners of the 2010 National Off Licence Awards were: Best First Time Entrant: Next Door @ The Square, Kilrush, Co. Clare. Food Retailing Off Licence of the Year: Donnybrook Fair, Dublin 4. Specialist Off Licence Group of the Year: O’Donovan’s, Cork. Spirit Specialist of the Year: Devenney’s, Dundrum, Dublin 14. Beers Specialist of the Year: McHughs, Malahide Road, Dublin 3. Wine Specialist of the Year: The Vintry, Rathgar, Dublin 6. Munster Off Licence of the Year: Barry’s Off Licence, Ballinacurra, Co. Cork Connaght/Ulster Off Licence of the Year: Dicey Reillys, Ballyshannon, Co. Donegal. Leinster Off Licence of the Year: Hollands Fine Wines, Bray, Co. Wicklow. Dublin Off Licence of the Year: Jus de Vine, Portmarnock, Co. Dublin. National Off Licence of the Year 2010: Gibney’s Off Licence, Malahide, Co. Dublin.
19
January/February10Paper
Products
The Paper Chase Volumes are up across the paper products sector, yet the pressure remains on value, with manufacturers responding to consumer demand for value offers and promotions.
The
paper products market continues to grow in volume terms, yet value is dropping, as consumers increasingly look for value options across the grocery spectrum. Now, more than ever before, Irish consumers are increasingly pricesensitive when it comes to everyday products, which includes the paper products sector. The total tissue market is up in volume by 6.7% year-on-year, while value is down by 9.3% (Source: TNS, 52 w/e to December 27, 2009). This trend has been driven by strong promotional activities from the premium brands, such as half price promotion and EDLPs. Price and promotion have impacted the shopper behaviour as they are now buying more toilet tissue per trip (+5.5%), taking advantage of the promotions and buying bigger packs, but less frequently. Private label is still falling strongly with a decline of 20% in value and 9% volume due to fierce promotional activities on premium brands such as Velvet, Andrex and KittenSoft. Despite a tough economy, shoppers tend to buy premium toilet tissue as it’s now more affordable to them. The kitchen towel category is up by 8.9% in volume and is also growing in value terms, up by 8.1% (Source: TNS, 52 w/e to August 9, 2009). Consumers are actually purchasing more in volume, and more often, with an additional increase in penetration of kitchen towels.
SCA Hygiene Products Ireland SCA Hygiene Products Ireland will be undertaking a major re-invigoration of the Charmin brand in 2010 as part 20
From February, Charmin will be known as ‘Cushelle’ and will feature a brand new Koala icon on-pack, and all packaging, which will be on shelf from late February, will be labelled with ‘formerly Charmin’ on the familiar purple swoosh.
of the agreement forged during SCA’s acquisition of the brand from P&G. The brand currently boasts a 5.2% market share (an increase from 3.3% during the previous period) in the €108m toilet tissue category. (Source: TNS 52 week ending to 9th Aug 2009). From February, Charmin will be known as ‘Cushelle’ and will feature a brand new Koala icon on pack, replacing the Charmin bear, and all packaging, which will be on shelf from late February, will be labelled with ‘formerly Charmin’ on the familiar purple swoosh. “The brand re-invigoration for Cushelle represents a major investment for SCA and will mark the start of a really exciting period for the brand,” explains Marketing Manager, Morgane Salin. “We are heavily supporting the brand migration campaign
to reassure our consumers that our product has not changed.” The brand migration will include a tailored integrated Irish marketing campaign which will drive home the ‘same irresistible product, brand new name’ message via multiple platforms including TV, outdoor, print, promotional and below-theline marketing, as well as a targeted consumer and trade PR campaign. A new website, www.cushelle.com, will contain information on the brand, as well as acting as an anchor for promotional activity. “The name ‘Cushelle’ was deliberately selected for its sound, which is representative of the product’s softness,” says Salin. The new brand icon is a cuddly Koala who is a ‘softness magnet’ that is attracted to all things that are soft.
Get ready for our irresistible big launch!
TM
Cushelle is the new name for Charmin toilet tissue. We’re investing in a groundbreaking marketing campaign from March 2010 including:
t
t Brand new TV, press and outdoor advertising t Exciting all-new website and digital activity t Fantastic in-store promotions and PR
New packaging with new irresistible brand icon
Same irresistible product. Brand new name. Stock up now for a better bottom line. SCA Press OfďŹ ce: 01476 4342 Charmin is a Procter & Gamble registered trademark licensed to SCA.
January/February10Paper
Products
Both the new name and the Cushelle Koala will remain true to the brand’s image as friendly, fun and appealing to families and Charmin loyalists. “Charmin consumers are loyal and, based on the extensive market research that we carried out as part of the migration process in the Irish market, we are really confident that consumers will connect with the new brand name and icon,” says Salin, adding, “We think this is good news for the category and will engage consumers.”
Cushelle’s new brand icon is a cuddly Koala who is a ‘softness magnet’ that is attracted to all things that are soft.
SCA Hygiene Products Ltd have experience of successfully migrating a tissue brand with the migration of Bounty to Plenty in 2009 growing its market penetration from 20.85% (Source: TNS, 52 w/e 09.08.09) to 31.85%, while also increasing volume by 26.4% (TNS 52 w/e 09.08.09). According to Salin, the key objective of the integrated marketing campaign will be to continue to drive loyalty to the brand and ultimately market share for Cushelle. Cushelle will come in Standard White (4, 9 16, 18, 24 or 32 roll). Indeed, the Bounty to Plenty migration proved a huge success for 22
SCA. Best in class migrations typically see a 15% reduction in volume during a migration. SCA has bucked this trend and have gained in value and even more so in volume. Plenty is up by 5.8% in value terms, and a massive 26.4% in volume (Source: TNS, 52 w/e to August 9, 2009), makKittenSoft Ultra Soft was developed ing it the to cater for bathroom indulgers, who number one kitchen towel brand in are focused on quality, design and Ireland. The Plenty range, with its comfort, and is Georgia-Pacific’s most new look packaging, supported by a luxurious toilet tissue ever. TV campaign, includes pack sizes to suit all store types and sizes. Georgia-Pacific In the facial category, Tempo, Georgia-Pacific produces many an SCA owned facial tissue brand, everyday brands that Irish consumers has had significant sales in Ireland know and love; KittenSoft bathroom in the past 12 months. Tempo is tissue; Thirstpockets; Inversoft available in all major retailers, in a EcoKind bathroom tissue; Posies; variety of SKUs, including Tempo Raytex; Lotus Olbas and DEMAK’UP. pocket pack, multipack of 8, with The bathroom category faces a Aloe Vera; Tempo Men’s Strength, hard challenge, with value declines regular size box; Tempo Regular and growth of 27.8% in the economy with Aloe Vera. sector (Source: TNS value share, Also from SCA, the Velvet brand November 29, ’09). However one brand is being driven by the growth of continues to add value. KittenSoft Quilted Velvet (+43% in value and Bathroom is Ireland’s favourite + 81% in volume). Triple Velvet bathroom tissue brand, claiming a is increasing in volume (+19%) but decreasing in value (-8%) showing a bigger dependency on deep promotional activities than Quilted Velvet. Charmin’s increase of +145% in volume is mainly due to new shoppers, with penetration increasing by 151% and reaching 31.6%, buying into the brands, thanks in no small part to the brand’s strong promotional offer of Charmin nine-roll New KittenSoft Aloe Vera carries a gentle natural balm, pack for €4. enriched with Aloe Vera.
January/February10Paper
Products
market leadership share position of 15.6%, a growth of 22% year-onyear. The brand was re-launched in 2009 with an improved product, new packaging and the support of a very successful TV campaign, which looks at bathroom tissue in a unique and innovative way, with a humorous tone welcomed by consumers. This activity put the brand in growth year-on-year and that growth is set to continue. With KittenSoft back on TV in March for the next eight months and a strong promotional programme, the KittenSoft brand is set to drive category value. Towards the end of 2009, two new range extensions were launched under the KittenSoft umbrella into the super premium sector. This sector is worth €9.2m and with the launch of these two products the category could see real growth in 2010. New KittenSoft Aloe Vera carries a gentle natural balm, enriched with Aloe Vera. This product was developed with the personal hygienist consumer in mind. Three layers of ultra soft tissue provide superior comfort and luxury for the entire family. This new product really gives the consumer the opportunity to care for their skin. KittenSoft also launched a unique four-ply product, KittenSoft Ultra was developed to cater for bathroom indulgers, who currently represent 18% of the market (Source: GFK Shopper research study commissioned by GP). They are focused on quality, design and comfort. KittenSoft Ultra uses four plies of elegant facial tissue softness, making it Georgia-Pacific’s most luxurious toilet tissue ever. This gives the consumer and their bathroom an extra touch of luxury to soften up their day. Innovation is a critical way to drive category growth and move consumers up the added value chain. Both new KittenSoft products offer that commercial opportunity.
Homestead The Homestead paper range continues to be one of the strongest categories within 24
Homestead Comfort 6-for-4 (RSP €1.99) has been performing extremely well throughout the country.
With sales amounting to almost €4m in 2009, accounting for nearly a quarter of overall Homestead sales in that year, the brand is truly enjoying the success of this category. The paper range, which includes a variety of toilet rolls, kitchen towels and mansize tissues, is produced to the highest quality using 100% virgin pulp paper. The selection rivals any market leader, while remaining well priced in order to compete successfully in the private label market. Homestead Comfort 6-for-4 (RSP €1.99) and the Absorb Kitchen Towel 2 Roll which is regularly promoted at €1 (RSP), are the true success stories of the Homestead paper range for 2009. “As the market becomes increasingly competitive, it is imperative that we review our pricing on a continual basis and we look forward to bringing more savings to our consumers in 2010 to ensure we continue to bring value home,” noted Homestead The Homestead Absorb Kitchen Towel 2 Roll, which is regularly Brand Manager, Janice promoted at €1, has been one of the success stories of the Gibney. the portfolio. Sales at the end of 2009 remained static in value and volume, which Homestead Brand Manager Janice Gibney is very proud of, considering the amount of promoted and extra fill branded product within the paper category which were available during the year.
Homestead paper range for 2009.
www.musgravegroup.com
It means great value on my doorstep I can drop in on my way back from work Supporting my local retailer supports local jobs Local retailers understand local needs Local retailers support local suppliers It can help me reduce my carbon footprint
It’s good to know there’s a great local store just around the corner Musgrave supports more than 3,400 stores in Ireland, the UK and Spain. Together with our retail partners we are Ireland’s second largest employer with more than 35,000 employees
Londis – GB only; Mace – Northern Ireland only
January/February10The
Retail News Interview
Almost a year and half has passed since Ireland officially entered recession. So what now for Ireland’s FMCG and grocery retail sector? Damian O’Reilly, from DIT’s School of Retail Management, puts the current state of the industry in perspective and predicts future changes. Damian O’Reilly, School of Retail Management, DIT.
The Future of Retailing The
biggest change to have taken place in Ireland’s retail sector over the last 18 months is that store owners and managers have “relearned how to retail”, according to Damian O’Reilly, School of Retail Management, DIT. “They have been forced by the recession and by the fact that consumers are becoming more choosy,” he explains. “A lot of recent surveys have suggested that consumers are willing to change the store they shop at, and it’s not just down to price – they’re looking for better value overall. So the value proposition has changed for the retailer, who is relearning some of the lessons they may have forgotten during the good times: they are focusing more on the customer and trying to do it better than the competition.” Retailers are using pricing and promotional strategies to attract customers to their store, but they are also upping the ante in terms of customer service to ensure that once customers leave the store, they will come back.
Streamlining the Supply Chain It’s not just in terms of the front-of-store retailing that things have changed, however. Many of the country’s more progressive retailers have upgraded their back-office systems to deal with the new reality, with new technology playing a significant part in streamlining the entire supply chain. “On the operations side, we can see that within the supply chain, there is much tighter control of inventory and much better management within companies,” O’Reilly notes. 26
One of the buzz-words of the last year has been the notion of the ‘lean’ operating system, which has come to the fore. O’Reilly notes how Marks & Spencer have reduced their stock holding by 15% over the last 18 months or so, without impacting on out-of-stocks, while other retailers are cutting down on the number of products available instore but have ensured better on-shelf availability of the range they do stock. “It’s all about optimisation of merchandising decisions,” he explains. “There are new technologies which allow retailers to deliver the right product to their customers: it is basically giving you information on what you are selling in real time, rather than having retail information that could be a
January/February10The
“Supermarkets are becoming far more efficient at realising how the consumer decides on a product and are making that decision easier for them, as a result.”
Retail News Interview
fortified with supplements: many consumers don’t even look at the brand or the expiry date. You might need to replenish milk stocks 10 or 15 times per day, but the challenge is in getting the other mix of products right in your chilled cabinet. “Category Management attempts to ascertain what the consumer is thinking when they’re at the shelf,” he continues. “In the wine sector, for example, a lot of retailers have the wine separated into white and red, as the first decision the consumer makes is whether to buy red or white wine. These retailers are looking at the consumer decision process as a decision tree and working out how to make it easier for consumers to purchase. A typical example is the soup sector: consumers regard soup as quick, convenient and nutritious,
are making that decision easier for them, as a result.”
which is similar to the way they think of instant noodles, for example, so retailers are starting to merchandise instant noodles beside the soup fixture, whereas before, they may have been located beside the pasta section in-store. Supermarkets are becoming far more efficient at realising how the consumer decides on a product and
market positioning to increasingly compete on low prices. Other groups, like SuperValu/ Centra , have also maintained their share, thanks to their strong advertising campaigns, highlighting the fact that they are local stores, owned by local people, looking after the local market, while SPAR have heavily
Polarisation of the Market The retail market, in general, is far more polarised than in recent years, with premium retailers performing particularly well, as are those retailers operating in niche sectors. Describing the sector as a wellshaped curve, with low-cost operators on one side and niche players on the other; he feels that those retailers who will continue to suffer in terms of market share are those who fall in the middle. Dunnes Stores have dropped market share by 3%, according to recent figures from TNS, which O’Reilly attributes to this factor, while other retailers like Tesco have maintained share by adapting their
week or a month old. You are able to get very quick reactions to new product introductions, promotions and to the stock assortment that you have in-store. This is going to be driven by technology: companies who utilise this technology are going to be at the forefront in delivering consumer value.” Many specialist retail technology companies are now offering end-toend solutions, according to O’Reilly, looking at where you are sourcing product from, how it gets to your store etc. “For example, a lot of delivery trucks used to come back empty to their warehouses, but now, thanks to the introduction of cross-docking and more sophisticated logistics systems, some retail groups have an 80% backfill, whereby four out of every five of their trucks are full on the way back from a delivery.”
Category Management More retail groups are using Category Management concepts than ever before, according to O’Reilly. “Retailers are increasingly managing their stock by category rather than managing by brands. It’s not just a case of merchandising: it’s deciding what product goes on the shelves, how many facings it needs etc. In the milk sector, for example, consumers tend to purchase by colour, where blue is full fat milk, green is low fat and red is
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Retail News Interview
promoted their value message, with heavyweight advertising highlighting the value offers to be found in-store: “While each of the ads are only promoting three or four products from a range of maybe 5,000, it is getting the message across that SPAR offers good value and this is driving footfall in-store.”
The Northern Irish Question One of the biggest concerns of Irish retailers over the last couple of years has been the continued exodus of consumers across the border to shop in Northern Ireland. Will the recent VAT changes, whereby the UK increased their rate and Ireland reduced ours, have an impact? “I think the VAT changes will have very little impact on consumers going up North to shop,” O’Reilly opines. “I think the real reason for that was the fact that Sterling and the euro became very close to parity – indeed, some stores in Northern Ireland were offering customers parity on the euro with Sterling, whereas in October 2008 a euro was worth only around 77p Sterling.” O’Reilly admits that companies operating in the Republic of Ireland have a different cost base to their counterparts in Northern Ireland, yet he contends that the difference isn’t as extreme as some commentators would have you believe. “It is generally accepted that it is a third more expensive to do business in the Republic than in Northern Ireland. That is 33% of the operational costs of the company, but overall, operations costs are only around 7-8% of the actual revenue taken in, if you include the cost of the product (which usually comes in around 60% or more).” He points to the recent ban of upward-only rent reviews as a case where costs are starting to come down, predicting that we will start to see rents coming down in line with property prices. “We are going to have to become more competitive,” O’Reilly admits. 28
“We are certainly doing that in terms of lower wages. We have seen that in the public sector, where wages are down by maybe 12%, while in the private sector, actual salaries might not be down as much in nominal terms but employees are not, by and large, receiving bonuses, which they would have in other years.” While not in favour of wage reductions in the retail sector, he feels that “there possibly should be some type of incentivisation programme for people working in the sector. I don’t think frontline staff, who deal with customers on a day-today basis, have been valued enough by companies. They have tended to pay them the minimum wage and not given them sufficient training. I think if retailers provided their frontline staff with good training, they could develop an advantage in terms of customer service, which I think is going to come to the forefront over the next couple of years.”
Buying Irish One big area of concern for suppliers over the last year has been the
pressure from retailers and consumers to reduce prices, with averages of 6% recorded in 2009. O’Reilly predicts that this downward pressure on prices is set to continue. “I think we’ll see disintermediation, where some Irish distributors will go out of business, as retailers will source their product from the UK or other European distributors. I can see that happening more and more,” he notes. “It will drive more efficiencies into the system for retailers, but it will also have an impact on jobs here in Ireland. Our agricultural sector is under huge pressure at the moment and I think that as a country, we need to be buying Irish products. Some research has been done in this area recently, revealing that Irish consumers are willing to buy Irish products to maintain Irish jobs.” He is supportive of the launch last year of Love Irish Food, whereby a number of Irish suppliers joined forces under a broad umbrella to promote the importance of buying Irish, as a good move. “Retailers are learning to listen to the customer and if the Irish people start to demand Irish produce, the main supermarkets will keep more Irish products on their shelves,” he stresses. “It is really up to the consumer to drive that demand.” So what of the future? Is the worst over in terms of store closures? “I would suggest that 2010 will see another round of closures, possibly more than in 2009. Once the sales are over, I think a lot of companies will be forced to close down due to a lack of trading in February and March. It is difficult out there and I can see a lot of smaller outlets going out of business.” While admitting that it is bottoming out, he feels that Ireland still has “too many retailers for the size of the country: but it is not a case of having too much recent retail space but a case that we are under-demolished in older retail space. I can see a lot of pressure coming on retail parks over the coming year or so: if one or two
January/February10The
Retail News Interview
outlets close, they just won’t have the required footfall any more.”
The Impact of Technology Elsewhere, O’Reilly feels that new technologies will have a massive impact on retailing as we know it. “We are seeing more multichannel retailing, with the internet firmly established as the second channel,” he notes. “Over the coming years, we will see technology changing, particularly with the advent of the Smart Phone, which could do for retailing what steam engines did for the industrial revolution. We are going to have internet browsers that will be tailored to the person, that will be able to tell where a consumer is located, thanks to GPS data, and point them to the nearest store that sells a certain product. Also, the social networking sites are huge and consumers are actively engaging with both retailers and brands through these sites. Consumers are increasingly using mobile devices and social networking sites and retailers will have to catch up. For example, M&S have over 100,000 Facebook friends.” Research shows that 60% of purchasing decisions are now made in-store and he feels that the near future will bring huge developments in the realm of in-store technologies for display, signage and perhaps even advertising, to assist consumers to make product choices. “Advertising may move from TV, which is very expensive, to in-store, allowing suppliers to promote products through digital displays, print-off recipes etc.” Loyalty cards are also being revolutionised, thanks to new technology. “With digital media, retailers now have the ability to use customer loyalty cards like never before: a customer could swipe their card upon entry to a store and then receive individual promotions tailored to their purchasing patterns. For example, if you generally purchase a certain type of wine or yogurt, you could be directed to promotions in that area specific to your needs. Rather than give you a list of 100 promotions, the store can tailor specific promotions to you, based on the
products you purchase on a regular basis. There are now Smart shopping trolleys, which have this information on-screen. “Retailers are increasingly looking at the lifetime value of consumers, particularly with loyalty cards. Big retailers are trying to get consumers to come back on a regular basis. They are going to have better multi-channel offerings, to have products available online and to organise delivery. It’s not just about obtaining customers, but retaining customers.” The biggest change for retailers, however, is recognising that the market has changed irrevocably and being
willing and able to respond to that change. “Previously, it was a case of just ‘spend, spend, spend’. Now, however, there is a limit to our demand. People will still buy their preferred premium products, but they will cut down on areas where consumption is not as conspicuous. A lot of high end retailers will maintain their shares, but people will cut down on spending in other areas, foregoing things they don’t have an emotional attachment to. It’s up to retailers to re-engineer their operating models to anticipate and satisfy consumer demand.”
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Meenan’s News Rack
Partworks: Profit Earners Niche titles are making their mark in 2010, with partworks proving particularly popular and profitable.
What
has been the biggest surprise on the magazine stand at the start of 2010? There are new launches and range extensions in every category and, of course, covermounts have continued to drive sales in each sub-category – but the biggest surprise for retailers and wholesalers alike has been the new partwork launch – The Art of Crochet! The Art of Crochet? This partwork has already exceed all expectations and Parts 1 and 2 have sold out in all of the UK and Ireland and are now being re-printed to satisfy customer demand everywhere. Who would have guessed that a leisure pursuit associated more with nursing homes than glossy magazine stands would prove to be such a best seller nationwide? Daniel Balkwill from Marketforce admits that when it comes to partworks, “there are fewer launches due to cutbacks as a result of the recession, but the launches that do go ahead have performed very well. Hachette Partworks have been incredibly successful with their recent launch, The Art of Crochet and are also very hopeful with their imminent launch, Hello Kitty. Recent launches from other publishers, including Gogo’s Crazy Bones, have proved very successful too.” Indeed, Balkwill described The Art of Crochet as the standout launch of recent years: “I can’t recall another partwork during my time working on the account that has achieved such a high level of success.” This goes to prove that the newsagency department – particularly the magazine stand – is fairly recession resistant. People like magazines. They 30
The Art of Crochet has exceeded all expectations and is one of the standout launches of recent years.
buy them in good times when disposable income is plentiful and they buy them in bad times as a small affordable treat. Car sales have recovered slightly in 2010 due to the scrappage scheme but sales were down by as much as 75% during 2009 – not so the demand for car magazine titles. House prices fell further during 2009 and rents fell to an all time low – but not so the demand for Home Improvement titles.
Buoyant Sales Sales of magazines were buoyant throughout the year, which indicates that even though the high ticket lines like new cars and new houses have all but stopped completely – our customers still want to be involved in their passion, whether that passion is racing cars or home furnishing.
‘A little of what you fancy does you good’ seems to be the maxim in this department. A magazine is perceived as an affordable treat – a selfish indulgence for less than a fiver. The best selling partwork last year was Little House on the Prairie. These two partwork collections, The Art of Crochet and a hit 1970s family TV show, are two titles which would probably have struggled for sales during boom years, but are certainly making their mark now when we are all trying to live in straightened times with reduced or no income. TV and radio programmes have reflected this new ‘Good Life’ lifestyle when you can occupy your time due to redundancy or unemployment with new low cost leisure pursuits. These leisure pursuits include cheap sports – Triathlon (cycling, running and swimming) is the fastest growing sport in Europe. There is no great capital outlay for these sports – just a good pair of runners and get the bike out of the garden shed to participate. Women’s Running is a brand new title just launched by Marketforce. This reflects the growing need for women to get out and exercise – but cheaply. Gym memberships may be seen as an indulgence but the numbers for the Flora Women’s Mini Marathon increase each year, up from 3,600 in 2006 to over 7,000 entrants in 2009. In fact, this women’s mini marathon is the biggest all-women’s event of its kind around the world – it has had over 500,000 entrants since its launch in 1983 – so there will be plenty of readers for this new title, Women’s Running.
January/February10Karen
Another surprise hit is Good To Know Recipes – this new launch is by the same publishers as top selling titles Look, Now, Woman and Woman’s Own, and is already selling really well. This new title is all about
providing quick, cheap, easy and nutritious recipes and is an offshoot of the really popular website www. goodtoknow.co.uk. Although issue one is still on the shelves and selling really well, many retailers have returned this title on the same day as it arrived. Why is that?
New Product Launches
Gogo’s Crazy Bones Mega Metropolis GOGO’S Crazy Bones Mega Metropolis has proved to be an extremely popular partwork since launching at the end of 2009. As a weekly title with a strong cover price, €5.99, this launch has very strong RSV potential, which is great news for independent retailers. The partwork collection is an extension of the massively popular Gogo’s brand! The Gogo’s made their first appearance in 2008, available as a collectable, which sold in vast numbers and won the 2009 ACE Award for Launch of the Year. Each issue of Gogo’s Crazy Bones Mega Metropolis contains a head-swapping Mega Gogo with a mystery Mini Gogo inside, as well as a cool Pod in one of six colours. The accompanying 20-page magazine is packed with an exciting mix of cool games, comic strips, Gogo’s battles, puzzles and trivia. The ‘Gogo’s Files’ feature tells readers all about the character highlighted in the issue and each new Gogo gets its very own exclusive comic strip. ‘Game Zone’ explains how to use the Mega Gogo and Pod to play great new games and there’s a Mega Gogo battle poster every week.
New products are seen as the lifeblood of any category in any retail outlet. New bars and soft drinks are heavily advertised on TV and have teams of merchandisers making sure that their new product gets pole position at the cooler or sweet counter. So why then are new product launch opportunities lost in the Newsagency? New titles are by and large seen as being a pain and are often met with a lacklustre response from retailers and a groan from those who pack them out, ‘Where will I put them?’ New magazine titles are good for customers, good for the category and good for sales – they just need to be managed well. What has happened all too frequently in Irish retail outlets is that brand new magazine launches have been topped and returned by
Meenan’s News Rack
staff members who don’t recognise the new title, without even giving this brand new product a chance to sell on the magazine stand. To find space on the magazine stand, the trick is to cull old or stale titles to make room for brand new launches. Next time your staff member says that you have no room – just check your ‘credits processed’ invoice and count how much money you lost because titles were returned too late! If your shop is typical of most newsagency outlets – then you will have been busy keeping good shelf space for titles that have missed the recall note and are now taking up space, losing you money in lost credit and losing you the sales of these brand new launches at the same time! Do you still have any calendars, diaries, yearbooks or annuals on your stand? Partworks (collectibles) and stickers are also products which are perceived as being not worth the trouble. If these are handled well, then there is money to be made – if you don’t manage them, then of course you will lose money – but doesn’t this hold true for the entire business of retailing? Money making in a retail outlet
How to Manage Partworks/Collectibles in Three Easy Steps 1. Take a decision to be a week ahead of your customer when they ask you to keep this item every week for them. When they buy issue 1, which is usually heavily discounted, ask them to pay for issue 2 at the same time, which is often at the normal selling price. This ensures that even when they stop collecting (and they usually will!), you are not going to lose any money and you are also not going to lose your customer. 2. Take a decision to only stock partworks 1-5 and after that, encourage your customer to buy direct with a credit card direct from the publisher each week after that. No risk to you and you still keep your customer. 3. Take a decision to stock all partworks 1-5 and when the title goes on firm sale, ask your customer to pay for two issues (part 6 and 7) at the same time so you never lose money. Take their mobile number and text them each time the partworks arrive in your store, so you can alert them. Good customer service it most certainly is, and it ensures that you keep your customer buying: when they stop buying, cancel. The Newsagency is a tricky category to manage, and can be very frustrating at times – we all accept that. But don’t lose the opportunity to make more sales just because you have found this category hard to manage in the past. If you need help to grow sales and reduce losses you can contact Karen Meenan at The Daily Profit – www.dailyprofit.ie or ring 086 6027711 or email kmeenan@eircom.net.
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five weeks but sale or return for parts 1-5 is a good guide. Partworks are usually heavily advertised on TV for the initial period, with media spend of up to €1m per launch. After that time, partworks go on firm sale – that means that you can no longer return an unsold partwork if your customer decides (as they usually do) not to keep the collection going. This customer behaviour, while frustrating to retailers, is not unusual: how often have you made a decision to lose a stone in weight, quit smoking, play more golf or leave the shop early, only to fall off the wagon a few weeks later? But when a customer decides not to continue with a collection, two things usually happen: The Top Gear Turbo Challenge collectible cards are sure to prove extremely popular.
is not automatic. A good retailer puts systems in place to ensure that every product is giving a return on his/her investment. Cigarette orders are carefully managed so that no excess stock is in the cage eating up cash flow, lottery tickets and call credits are balanced daily to pin-point shrinkage and inordinate amount of time is spent counting cash. How much time did you spend last week counting cash and looking for the fifty euro which was actually in your coin station all along? And more importantly, did you perceive any of the above tasks as time wasting or cost controlling? Bottom line: did any of these tasks put one extra sale in your till?
Managing the Category New launches, partworks and stickers, when handled well, are money making. There is a real opportunity for you to steal a march on your competitors: you just have to know how to manage the newsagency properly. In order to get it right – know the rules. Parts 1 to 5 are returnable – these are on full sale or return, so that your customers have a chance to see if they like the collectables within the first five weeks of the partwork launch. Sometimes this is longer than 32
1. You fall out with the customer and insist that they wanted the item, therefore they ought to pay for it. Result: you lose the customer forever. 2. You decide never to stock partworks again. Result: you lose the sales on partworks (which people want because they all get heavy TV advertising) – so you lose again. In fact, you are so annoyed with your customers that you strangely want to stop selling stickers also… on the basis that the children have stopped collecting them. Result: you lose again. Stickers are like every new craze – marbles, fashion acces-
Amazing Dinosaur Discovery AMAZING Dinosaur Discovery is a thrilling new weekly partworks collection for children, which explores the exciting era of the dinosaurs – creatures that dominated the earth for millions of years and continue to capture the imagination of adults and children alike. Issue by issue, readers will collect teeth, bones and skin to build their very own model of a Tyrannosaurus Rex! Children will always be fascinated by dinosaurs and schools encourage their curiosity, and Amazing Dinosaur Discovery keeps parents and their offspring happy with its colourful and captivating mix of fun and facts. However, readership is likely to have a bias towards young boys, aged between three and nine years old. The magazine examines the behaviour, habitat and environment of dinosaurs and other creatures of the time, putting these magnificent beasts into context. Readers will also learn all about archaeological and historical dinosaur discoveries. The easily-to-assemble Tyrannosaurus Rex model is 1.2m tall and comes with its own stand. The skeleton is complete by part 47, while the skin is finished by part 80. Part one has an irresistible introductory price of just €1 and comes with a skull top plus two sets of teeth, and Part two is covermounted with the lower jaw and set of teeth and is priced at €4.50, while subsequent issues are priced at €7.50. Retailers will be pleased to know that this product has already been launched by publisher RBA to great success! Versions released in Italy, France and Spain performed exceptionally well and Amazing Dinosaur Discovery is expected to be a smash in Ireland too. Its launch is supported by a high-profile TV advertising campaign, sure to generate plenty of excitement and footfall into stores.
January/February10Karen
The Daily Profit W h e re Re t a i l e rs Make More Profit
The Daily Profit – Helping You to Manage Your Newsagency THE Daily Profit is a business that takes the pain and frustration out of managing the newsagency department. Founded originally with just one retailer who had two shops, the Daily Profit grew by word of mouth to over 100 shops and 14 people working in this business in just nine months. There are only two objectives at the core of its business model 1. 2.
Stop Losing Money Make Some More
Meenan’s News Rack
(to repeat, when handled well) are so successful for publishers that they are launching at alternative times during the year to link with buyer behaviour. The Art of Crochet was supported by over a million euro of TV advertising support and it has been so successful that they have to do a reprint. And you didn’t stock it? For the girls, there are two new partworks – Gogo’s Crazy Bones Mega Metropolis – a bit hit on Santa Lists in 2009 – and Hello Kitty, which has been really popular with girls around the world, is just about to launch a brand new collection in February.
The Daily Profit works very closely with retailers, wholesalers and publishers, troubleshooting and acting as a buffer between retailer and supplier. The Daily Profit becomes a third party that manages the standing order for the retailer, ensuring that the right supply and the right range of titles for that particular store is kept so that the retailer can build sales, reduce losses and reduce wage costs. The retailer has to take a leap from being a shop that sells magazines to a destination newsagent to achieve all those extra sales. Contact: Karen Meenan, The Daily Profit, 3 Warrenhouse Road, Baldoyle, Dublin 13. Tel: 086 6027711. Email: kmeenan@eircom.net. sories, hairstyles. You can make a lot of money for the short time that they are fashionable - Premier League is always fashionable, but don’t miss out on other opportunities such as Match Attax, Champions League, GAA All Stars or stickers linked to new children’s movies. When children stop collecting them (and they will – this craze is
Hello Kitty, which has been really popular with girls around the world, is launching a brand new collection in February.
short lived), you can get your money back in full without risk. Did you know that you can send half boxes and single packets of all the stickers you didn’t sell straight back to your distributor and get full credit for all unsold stickers? To dispel another myth – many retailers believe you can only return full boxes of stickers to receive credit – you don’t. While there is a general recall date for stickers, you can in fact return un-solds whenever you want – simply identify how many you are returning on your query sheet with your account number and return to your distributor in the normal way. And most important of all – make sure you return un-solds back to the correct supplier! Thousands of euro are lost every week because retailers send back the wrong titles to the wrong suppliers. When you make these mistakes (Code C on the EM credit advice note or ‘Not supplied by Newspread’ on the NS advice note), you lose money – lots of money! Partworks publishers traditionally advertise new launches at the start of each year – this is because TV advertising in the post-Christmas period is relatively cheap – they don’t do this just to annoy you! Partworks
Top Gear Turbo Challenge is linked to collectible cards (with almost 300 in the series) and an interactive website.
Another good launch recently has been Top Gear Turbo Challenge, which is linked to collectible cards (almost 300 in the series) and an interactive website. This launch is aimed at boys primarily who have been a proven audience with Match Attax and other collections. But beware – you have a new competitor – the Top Gear Turbo Challenge Website! If you don’t stock this partwork (or run out of parts along the way) your customers can log on to the Top Gear website and subscribe and get 9 free gifts, including a Top Gear Rucksack and Beanie Hat – just because you didn’t recognise that these boys still have pocket money and will get what they want – but just not in your shop. 33
January/February10Commercial
Transport
Commercial Transport Supplement Nissan NV200 Named International Van of the Year 2010 THE NV200 or new Vanette, Nissan’s global all new compact van, has been awarded the International Van of the Year title 2010 by a jury of specialist European commercial vehicle journalists. “The jury was particularly impressed by the fact that Nissan created a compact light commercial vehicle that sets new standards in terms of internal space in relation to the external dimensions,” said the official statement from the IVotY Jury. The NV200 is a real segment breaker, with exterior dimensions comparable to a car-derived van and cargo capacity of a higher class. It is 4.4m long, 1.86m tall and 1.69m wide and comes with a cavernous cargo space. Intelligent packaging delivers a cargo load bay more than 2m in length, sufficient to carry two standard Euro pallets at the same time. The cargo floor is the lowest in its category, at only 524mm. As a result,
the NV200’s load cube offers a cargo volume of 4.2 cubic metres, around 25% greater than the competitors’ average, offering an additional 1 cubic metre. The new NV200/ Vanette has just gone on sale here, with a recommended retail price of €15,925 including VAT, and will include power windows
and power locking in the specification. It will compete with the likes of the Ford Transit Connect and the Volkswagen Caddy. It was launched here too late to qualify for the 2010 Continental Irish Van of the Year award, but will be in the running for next year, which will be announced next November.
Vantastic Ford Takes All at Irish Van of the Year Awards THE new Ford Transit Connect has been voted Continental Irish Van of the Year 2010 by the Irish Motoring Writers Association, finishing ahead of the Renault Kangoo and Verde Cargovan. This made it a clean sweep for Ford, which also took the Commercial SUV award and CarDerived Van award. All nine voting members of the Irish Motoring Writers Association van jury took part in the vote. Valuefor-money, reliability, versatility and lasting residual value were among the attributes assessed by the judges. Presenting the award to Eddie Murphy, Chairman and Managing Director of Ford Ireland, Paddy 34
awards, the Transit Connect has has Murphy of Continental Tyres combeen named 2010 North American mented: “Ford has long enjoyed a Truck of the Year. leading position in the van marketplace in Ireland, and it’s through vehicles like the new Transit Connect. The blue oval’s hat-trick of awards is a tribute to the brand’s CV credentials.” The Ford Kuga commercial took the Continental Irish Commercial SUV award, with the Ford Fiesta Van bagging the Continental Irish Car-Derived Van of the Year Pictured are (l-r): Michael Moroney, Chairman, title. At the same ceremony, IMWA; Gerry Murphy, Chairman of IMWA Van the Peugeot 3008 was voted Jury; Eddie Murphy, Chairman & Managing Continental Irish Car of the Director, Ford Ireland; and Paddy Murphy, Year 2010. Since the Irish General Manager, Continental Tyres.
January/February10Commercial
Transport
Mercedes-Benz Leads the Way in Irish 2009 HGV Sales FOR the first time in recent memory, Mercedes-Benz has taken top place in the 2009 heavy commercial vehicles sales league. Statistics released by SIMI show that, out of a total market of 1,103 units (significantly down on the 2008 figure of 3,641), Mercedes-Benz secured first place with 199 units sold, equal to a market share of 18%. Second place went to Volvo with 161 units sold (14.5%) followed in third place by DAF with 145 units sold (13.1%). Driving the company’s success was the appeal of their International Truck of the Year
award winner, the Actros range of heavy commercials. Commenting, Mercedes-Benz Commercial Vehicles Sales Manager Fergus Conheady said that in what was a challenging year economi-
cally, customers were won over by the cost-effective qualities and economical performance of the Actros range, coupled with the support they expect from trustworthy, reliable partners.
Peugeot 3008 voted Continental Irish Car of the Year 2010 THE Peugeot 3008 crossover has been voted Continental Irish Car of the Year 2010 by the Irish Motoring Writers Association (IMWA). In determining the winner, the IMWA jurors voted on a shortlist of 10 cars spread over five categories. The results of the vote were as follows: Votes 1 Peugeot 3008 2 Mercedes Benz E-Class 3 Kia Soul 4 Honda Jazz 5 Volkswagen Golf 6 Opel Insignia
239 199 198 169 165 164
All 27 members of the Irish Motoring Writers Association voted, awarding points on criteria ranging from
innovation and safety to space, comfort, build quality, driving quality and value for money. Presenting the award to Dave McConnell, Managing Director of Gowan Distributors, Paddy Murphy of Continental Tyres commented: “As a crossover, the Peugeot 3008 is the first Irish Car of the Year to come from outside the traditional car segments. It’s a huge testament to the car’s qualities that it has emerged top of such an illustrious list of models.” Awards were made in five categories, reflecting the diversified nature of today’s car market in Ireland. The Peugeot 3008 was the winner of the Continental Irish SUV/Crossover of the Year category in addition to the overall award.
Subaru Adds Commercial Version to Forester Diesel Range SUBARU have added a new Forester Boxer Diesel to complement the existing model launched last year. Standard features include Subaru’s all wheel drive system, and the Irish importers believe that it will certainly attract new buyers in this climate of ‘value for money’. The specification includes 17” alloys, VDC, side & curtain airbags, and heated seats. Subaru Ireland has also added a commercial version of the Forester 2.0TD X, which attracts only €50 VRT and annual road tax of €288. The commercial version retails at €28,995 including VAT. And its GVW at 1500kg has a braked towing capacity of 2000kg.
Pictured are (l-r): model Suzanne McCabe; Paddy Murphy, General Manager, Continental Tyres; Michael Moroney, Chairman, IMWA; and David McConnell, Managing Director, Peugeot, pictured with the Continental Irish Car of the Year 2010 - the Peugeot 3008.
Category Winners Continental Irish Small Car of the Year: Honda Jazz. Continental Irish Family Car of the Year: Volkswagen Golf. Continental Irish SUV / Crossover of the Year: Peugeot 3008. Continental Irish MPV of the Year: Renault Grand Scenic. Continental Irish Luxury / Sport Car of the Year: Mercedes-Benz E-Class. 35
January/February10Commercial
Transport
Honda’s New CR-V ‘Executive Commercial’ Option UNIVERSAL Honda is introducing its first commercial vehicle into the Irish market with the launch of the new CR-V ES commercial derivative at €29,226 including VAT, and the CR-V EX commercial 2.2 iCTD, at €32,226 including VAT. Both are powered by Honda’s award winning turbo diesel engine and equipped with Honda’s real time four-wheel drive system. The unladen weight of this commercial version is 1,580kg and payload is 560kg. Honda tells us that the commercial option enjoys the same outstanding levels of comfort, specification and safety currently available in the passenger carrying CR-V ‘Executive’ option. The ‘spec’ includes an 8-way power assisted driver seat, leather upholstery, 18” alloy wheels, cruise control, Bluetooth hands free tel-
ephone system, built in satellite navigation system, dual zone climate control, and much more besides. As with all Honda vehicles sold in the Irish market, the CR-V commercial enjoys the benefits of three-year mechanical warranty and roadside assistance programmes. “We see the new ‘Executive’ commercial option appealing to the professional business person who will appreciate the superb driving characteristics and refinement of Honda’s
Volkswagen Gearing Up for Transporter (T5) Take-off VOLKSWAGEN Commercial Vehicles have just launched their new Volkswagen Transporter, with the new model containing more specifications than ever before at a lower price. The Transporter will have a host of new features, from a new bonnet, radiator grille and bumper, to a new colour range and VW emblem, all set to give the new Transporter its most modern look and feel yet. Featuring a brand new range of 2.0L engines with power output from 85 bhp to 180 bhp and the availability of Volkswagen’s acclaimed 4Motion and
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DSG technologies, the Transporter will set a new standard in its class. Despite all the additions, the new model entry price is lower than the previous model, starting at €21,965, and includes ESP as standard. The new Transporter achieves ground-breaking levels of safety, with a host of new driver assistance and protection systems. Along with the ESP as standard, options include a lane change assist feature (Side Assist), a reversing camera (Rear Assist), different additional light functions and the tyre pressure monitor (TPM) display.
diesel engine technology and savour the outstanding premium level of specification which combine to deliver an outstanding value for money proposition,” noted Frank Kennedy, Sales and Marketing Director, Universal Honda.
The Dangers of Buying PartWorn Tyres AS further evidence emerges that private motorists and businesses are delaying the replacement of worn or defective tyres, drivers who are looking to save money may be tempted to purchase part-worn or second-hand tyres. However, according to new research, this may not only prove to be a false economy, but a potentially dangerous decision - some of these tyres have internal casing damage or other problems not visible to the eye that could result in a sudden deflation. Legislation is in place in the UK but not in Ireland to protect motorists from dangerous part-worn tyres: they must be thoroughly examined by the retailer and have a minimum of 2mm of tread. However, it is increasingly the case that they offer very bad value for money and according to Trading Standards checks, upwards of 30% may have dangerous and unseen faults.
January/February10Commercial
Transport
New Ford Kuga Van Adds Commercial Appeal LAUNCHING its Kuga Van last year, Ford promised one of the most visually appealing commercial vehicles on the road and it certainly delivered on that promise. The Kuga commercial also delivered the Continental Irish Commercial SUV of the year award last November. The new van has all the looks and specification of the stylish Kuga Zetec SUV, but with a strong workhorse side to it and vastly reduced VRT and BIK to match. The all-wheel-drive Kuga Van is tapping into the market for high-spec car-like vans, which appeal in today’s climate not only for their low capital cost, but for savings of hundreds of euro per month in Benefit-in-Kind for the user. “A company car driver who can forfeit rear seats has a most alluring vehicle here,” comments Eddie
Murphy, Chairman and Managing Director, Ford. “It carries none of the negative trappings of a conventional van. In fact, it’s scarcely recognisable as a commercial vehicle, with its high external spec and ‘kinetic design’ styling. At the same time, the presence of all wheeldrive means it’s a gritty worker when the need arises.” Powered by the engaging 2.0 TDCi Duratorq 136 bhp powertrain, the Kuga Van boasts a spacious load capacity which belies its sharp, slick exterior. Standard specification includes ESP (Electronic Stability Programme), six airbags as part of Ford’s Intelligent Protection System, air conditioning, 17” wheels, six-
speaker remote radio CD, electric heated door mirrors, front fogs, trip computer, keyless start with Ford Power button, body colour rear spoiler and leather steering wheel. The Kuga has a 5 star NCAP safety rating and is available in a selection of striking colours from €23,510 ex-works but inclusive of VAT.
Cold Weather Tyres a Must GIVEN the bad icy weather conditions experience across Ireland and the UK in late December and early January, Continental Tyre Group believe it’s of vital importance that van drivers and fleets are aware of the many safety benefits in fitting cold weather tyres to work vehicles. Intensive testing undertaken by Continental has shown that a van’s braking distance when travelling at 30mph in icy conditions dramatically increases by up to 31%. The average extra distance a van will travel when braking on standard tyres versus cold weather tyres is 13m, while a passenger car or car-derived van will travel a further 8m – an increase of 23%. “Every winter, we have problems on the road because drivers are poorly equipped to cope,” noted Scott Benbow, Product Manager at Continental. “Drivers in most European countries fit cold weather tyres from October to March. This allows them to have greater tyre performance when temperatures drop to below 7ºC - a common occurrence in winter months.” With a unique compound which stays supple in cold weather, the advanced Continental VancoWinter 2 aids drivers with sipes – the small
slits in the tread blocks of the tyre – that spread when braking. This cre-
ates an ice scraper effect on the road surface, allowing shorter braking distances on winter roads. Open shoulders on the tyre with wide lateral grooves give excellent water drainage, leading to a high level of protection against aquaplaning on wet roads. As well as ensuring the occupant’s safety, the VancoWinter 2 has an optimum tyre footprint to give even wear. This, coupled with the cold weather compound, gives the VancoWinter 2 as much as 30% extra mileage potential in the winter months compared to a conventional van tyre.
About the Author PADRAIC Deane represents Ireland on the ‘World Car of the Year’ jury. In addition, he is the Irish juror for selection of the ‘World Green Car’, the ‘World Performance Car’, and the ‘World Car Design of the Year’. He is also in his tenth year as Ireland’s juror for the ‘International Engine of the Year Awards’, which includes the selection of the ‘Green Engine of the Year’ and The ‘Best Performance Engine of the Year’. Padraic is also the Irish Motoring Writers Association (IMWA) Secretary. In this on-going role, he is also a juror for the ‘Irish Car of the Year’, ‘Irish Van of the Year’ and ‘Irish Commercial SUV of the Year’ awards. In addition to his expansive role at Automotive Publications, he also writes syndicated consumer motoring columns weekly in many regional newspapers. He also writes frequently on motoring related subjects in other national media, including newspapers and magazines, as well as broadcasting on radio.
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January/February10Drinks
News
New Heineken Cup TV Ads AS Munster and Leinster continue their assaults on their European campaigns, Heineken airs the first of a new series of ads created to celebrate the 2010 Heineken Cup. With titles like ‘The Intercept’, ‘The Knock On’, ‘The Scrum’, ‘The Skip Pass’ and ‘The Up and Under’, the ads take a humorous look at how this behaviour translates to the pub environment on Heineken Cup match days. “The new TV ads celebrate the important role Heineken plays on Heineken Cup Days,” said Aisling O’Brien, Heineken Ireland. “In a humorous way, it reinforces Heineken’s long-standing sponsorship of the tournament since its inception in 1996, highlights the many great moments that take place on and off the pitch and the lengths rugby fans will go to for their Heineken on match day!”
Superquinn’s New South American Wine Range SUPERQUINN has continued its all encompassing wine range review with the launch of a new range of wines from South America, priced from €6 to €22.99. Wine Buyer Richard Moriarty and his team tasted over 500 wines to bring the final range to 84. The range includes 24 brand new wines, 14 of which are exclusive to Superquinn. Argentina was a particular focus with three new brands listed, Terrazas, Buenos Aires, and VinAlba, while the range also includes three new examples of Carmenere across the price ranges: Santa Rita Carmenere Reserva (€12.99), 35 South Carmenere Reserva (€9.99), and Las Toscas Cabernet Carmenere (€6.99).
Febvre Adds to Portfolio FEBVRE & Company Limited is starting the new decade on a high note, having gained the distribution rights for Beringer Wines from the Napa Valley, California, for the island of Ireland. In addition, the company is adding the Penfolds range of Australian wines to its portfolio in Northern Ireland. Both appointments take effect immediately. “Both Beringer and Penfolds are highly esteemed world brands that have very long traditions of innovation and experimentation, and maintain unwavering high levels of quality, resulting in very fine wines,” explained Anthony Alken, Managing Director of Febvre & Company. “Both wineries were started as family businesses in the mid 1800s and are now sold all over the world. We at Febvre are both delighted and proud to be associated with these world-renowned wineries.”
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Pub Talent Competition Kicks Off THE Vintners’ Federation of Ireland (VFI), in conjunction with Smithwick’s, is giving the Irish public the chance to showcase their talent in the ‘Stars Of Our Bars’ pub talent competition. With over 5,000 acts expected to participate in 400 pubs across Ireland, ‘Stars Of Our Bars’ has a total prize fund of €50,000. Each pub will have the chance to run up to eight competition heats and finalists will be chosen from each participating county to be put forward to the provincial finals in April. The lucky finalists who make it through the county and provincial stages of the competition will then take part in the Grand Final in May. VFI President Val Hanley is pictured with model Nadia Forde and Trevor Hunt, Smithwick’s Senior Brand Manager.
Top Italian Liqueurs for B&F BARRY & Fitzwilliam have secured the Irish distribution rights to the premium liqueurs Disaronno and Tia Maria from Illva Saronno S.p.A, which produces and sells top international brands. According to Michael Barry, CEO of Barry & Fitzwilliam (pictured), projected sales of the two new brands are expected to be in the region of €4m (25,000 cases) in 2010. The distribution rights for Tia Maria were formerly held by Irish Distillers/Pernod Ricard and Disaronno was with Cassidys. “We would like to thank both Irish Distillers and Cassidys for their previous work on the brands,” noted Michael Barry.
January/February10What’s
Barry’s Tea Increases Range BARRY’S Tea has launched two new additions to its tea family, Pu-erh and South African Rooibos. With Pu-erh rich in anitoxidants and South African Rooibos being naturally caffeine-free, these high quality teas are an exotic, healthy alternative to traditional blends. Barry’s Pu-erh Tea, which has a very pronounced earthy aroma and taste, takes its name from Pu’er county near Simao, Yunnan, China, while Rooibos is made from 100%
of the rooibos herb, sourced in the Cederberg mountain region of South Africa. “The addition of Rooibus and Pu-erh answers a growing demand for great tasting, interesting teas with health benefits,” noted Camille O’Flanagan from Barry’s Tea.
Driving Home a Winner LUCKY winner Mary Keaney from Ballinasloe, Co. Galway is pictured being presented with a brand new Hyundai i10, the grand prize in ‘The Bend In The River’ national consumer promotion in association with Hyundai, Ireland, by Ann Marie Finucane, Marketing Manager, Findlater Wine & Spirit Group. The promotion generated over 5,000 entries. “Offering consumers the chance to a win a Hyundai i10 and using SMS as the entry mechanic proved a highly successful promotion for The Bend in The River,” noted Ann Marie Finucane. “The trade support was fantastic and the brand share grew by 3.8% during the period.”
Nature’s Best Meal Pots NATURE’S Best Meal Pots are a delicious new hot meal option for lunch or as a snack, produced in Drogheda, Co. Louth. Each meal pot is generously packed full of wholesome ingredients, providing one of consumers’ recommended five-a-day vegetable portions,
and is ready from the microwave in just three minutes. The Nature’s Best Meal Pots range of 350g snacks is available in four mouth-watering flavours: Italian Meatballs, Thai Vegetable Curry, Tuscan Bean, and Spanish Vegetable & Chorizo.
New
McVitie’s Cut Down on Fat UNITED Biscuits have announced a second reduction in the saturated fat content in three of their iconic McVitie’s biscuit brands after a further multi-million investment. McVitie’s Digestives, McVitie’s HobNobs and McVitie’s Rich Tea are now reduced in saturated fat by a further 50%, following a similar reduction 12 months ago. To ensure the taste and texture of the biscuits remain the same, the range has gone through rigourous sensory testing and consumer taste tests, all of which have been extremely positive. The on-pack flash has been updated to: ‘Now Lowest Ever Saturated Fat Same Great Taste’. In addition, the communication of ‘a further 50% reduction’ will clearly highlight to consumers the second nutritional upgrade, while the news will also be promoted via a heavyweight television and PR campaign.
Kerryfresh Gourmet To Go Ready Meals KERRYFRESH have launched a new range of tasty and convenient Gourmet to Go Ready Meals, which can help retailers to dramatically increase lunch-time and evening trade. This is a full range of fully-cooked meal centres and side dishes, from traditional Irish to ethnic favourites, including Breast of Chicken Curry, Beef Casserole, Irish Lamb Stew, Sweet and Sour Chicken & Vienna Steak Burgers. They come in ready-to-use, conveniently-sized 2.5kg containers, which are chilled,
with no thawing required. They can be either served hot for immediate consumption or cold from the Grab & Go fridge.
New Honey Menthol Sweets HG Ritchie Ltd, based in Dublin 8, have launched a new range of Honey Menthol sweets in two great flavours, Honey & Lemon and Blackcurrant & Honey. The new sweets, which are made in Ireland, come in handy €1.49 bags. For more details, contact HG Ritchie Ltd on (01) 453 4456. 39
January/February10Shelf
Life
Shelf Life A FAMILIAR face to Coronation Street fans, Sean Wilson has launched his very own artisan cheese in Superquinn stores. Better known as Martin Platt from the popular TV soap, Sean recently visited Superquinn stores in his new role as an accomplished artisan cheesemaker, to launch ‘Smelly Apeth’, a delicious medium soft blue veined cheese, made by Sean and his team at the Saddleworth Cheese Company in Lancashire. Superquinn is the first Irish multiple to list the product, a fantastic addition to its already extensive cheese portfolio. IRISH society’s thoughts towards home have changed significantly over the past few years, according to new findings by Denny, who surveyed over 3,500 people as part of their search to find real people to feature in their new TV ads. It resulted in six different groups and families from around the country being invited to film their taste of home. “The Denny brand is present in nine out of 10 households in Ireland and as part of the recent ‘home is’ campaign, we wanted to find out what home means to the people of Ireland today,” noted Tricia Burke, Marketing Manager, Denny. The survey revealed that 65% of people are now spending more time at home and with their families than at the start of the downturn, while 44% of people stated that home is a feeling, rather than a place. 28% of people think of their nearest and dearest when they think of home, and 22% think of an object, with bed and couch being the firm favorites. 20% see home as a place of comfort and relaxation, and somewhere to shelter from the stresses of modern day society. PHILADELPHIA has announced a new year-long partnership with popular Irish chef, Kevin Dundon. As part of the new partnership with Philadelphia, Kevin will appear in a new TV advertising campaign, preparing a range of simple and delicious Philadelphia recipes, which will also feature on new website, www.philadelphia.ie. The website will also encourage Irish consumers to share their own Philadelphia recipes online. CHINA is set to overtake the US for the first time as the largest grocery market in the world by 2014, according to international food and grocery expert IGD. IGD forecasts that the Chinese grocery market will be worth €761 billion, outstripping the US, which is set to be worth €745 billion in four years’ time.
RTÉ Presenter Ryan Tubridy, Jack Sullivan (aged 4) and Eabha Last (aged 6) are pictured reading children’s books by Irish authors to launch the Kellogg’s Rice Krispies Storytime promotion. The promotion offers parents the chance to collect six free children’s books by Irish authors published by The O’Brien Press with tokens from Rice Krispies. Books can be collected from Hughes & Hughes book stores nationwide. A Kellogg’s Rice Krispies survey released recently shows that most Irish mums (65%) begin reading to their child before he or she is a year old and over a quarter (26%) start reading to their child from birth.
THE 23rd Outdoor Advertising Awards will take place in Dublin on April 22, 2010. These prestigious all-Ireland Outdoor Awards have always recognised creative distinction. This year they will also acknowledge campaigns that have achieved results through excellence in media planning and celebrate those that have best utilised the Outdoor Medium over the period 2008 to 2009. There are four categories in the 23rd Outdoor Advertising Awards: Grand Prix - Best Outdoor Campaign, Best Poster Design, Best Industry Newcomer Poster Design and Most Innovative Campaign. Entries are now being accepted. Closing date for entries is Friday, March 12. See www.outdoorawards.ie for more details. 40
RECENT TNS Worldpanel grocery market shares published for the four weeks to December 27, 2009, show that SuperValu was the best performing supermarket in the Republic over the Christmas season. SuperValu’s performance is being driven by market share gain, as it was the only supermarket to have attracted new shoppers over Christmas compared to the same period last year. This is the second month in a row that SuperValu has outperformed its rivals.
LAURA Mahon has joined the growing Thinkhouse team as Junior Youth Communications Executive. Laura joins from Bodytonic, where she worked since 2007 as a club promoter and cocreator of ‘12 Sundays in the Bernard Shaw’. FOLLOWING a successful launch in the UK, food and drink innovations agency, The Food Nursery opens its doors for business here, with the launch of its Irish operation, based in City West, Dublin. Jayne Redmond, a successful Dublin-based businesswoman, will run the dayto-day operation, which specialises in evolving good food ideas for the food and drink industry. The Food Nursery boasts some of the best names in the Irish food business, coupled with a team of strategic marketing experts. The process is simple: putting together panels of food experts, chefs and marketers gives clients truly knowledgeable innovators and thinkers.
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