Retail News July / August

JULY/AUGUST 2011

*SOURCE: AC NIELSEN TOTAL CONFECTIONERY VAL MAT 8WE17ARP11

www.retailnews.ie|July/August 2011|Contents|3

Contents Symbols of Success This month, Retail News presents a special supplement, where the biggest symbol groups in Ireland explain what makes them work, why they continue to perform well in a tough retail environment and what it is they look for from a prospective retailer. This comprehensive 16-page feature, with an introduction from Tara Buckley, RGDATA Director General, provides a perfect snapshot of Ireland’s major groups, showcasing just why Ireland’s independent and group sector is the envy of Europe.

Elsewhere, our News section includes a report on the biggest story in Ireland’s grocery sector in years, the proposed purchase of Superquinn by Musgrave Group. Following months of speculation, Superquinn was put into receivership in mid-July, prompting rumours about who might step in to take over the ailing chain.

The good news, at the time of going to press, is that it looks like Musgrave have stepped into the breach, and are making the right noises about retaining Superquinn’s 2,800 staff and continuing to trade with Superquinn suppliers (Page 4).

Also in our packed news pages, we gauge reaction to the Government’s proposed packaging tax, with most industry commentators feeling that it is an unfair and unnecessary additional burden on a sector that’s already under severe pressure, while we also examine the High Court’s recent ruling that the JLC wage rates are unconstitutional, in what is potentially a landmark decision for Ireland’s retail trade.

Elsewhere, Damian O’Reilly from DIT’s School of Retail Management examines how retailers can influence the consumer purchasing decision, in the first of a series of articles, while Niamh Twyford, Senior Brand Manager at Kraft Foods, reveals the latest innovations from The Natural Confectionery Company.

News

SHOP 2011

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producers will be showcasing their produce as part of the County Enterprise Board stands at SHOP 2011.

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Musgrave to Purchase Superquinn Business?; NCA Board to be Scrapped.

5

New Packaging Tax Slammed by Industry.

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JLC Rates Deemed Unconstitutional; Tesco Recruits 35 New Local Suppliers

7

Code of Practice Could Benefit Retailers; Grocery Market Slowdown.

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SuperValu Survey Reveals Consumer Cut-Backs; New Revenue Strategy to Combat Illegal Tobacco Sales.

examines the Top 20 wine brands in Ireland, and what they have to offer your consumers.

Symbol Group Focus

25 A perfect snapshot of the major symbol groups operating in Ireland, we examine the various ingredients in their success and explain what they each look for in a potential retail partner.

of articles, Damian O’Reilly, Lecturer in Management, DIT School of Retail Management, explains the changing nature of the consumer purchasing decision.

Retail News Interview

18 Niamh Twyford, Senior Brand Manager at Kraft Foods, explains how The Natural Confectionery Company stays on top of the sugar confectionery sector and reveals the brand’s latest innovations.

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Editorial & Marketing Director: Kathleen Belton

Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

Editor: John Walshe

Tel: (01) 2413095 Fax: (01) 2413010

Advertising: Kathleen Belton

kathleen@tarapublishingco.com

Web: www.retailnews.ie Email: retailnews@tarapublishingco.com

pat@tarapublishingco.com

Subscription to Retail News: e95 plus VAT Email: aoife@tarapublishingco.com

adrian@tarapublishingco.com

Origination by: Rooney Media Graphics

Adrian Murphy

60

Shelf Life

62 All the latest news and gossip from the trade.

12 Industry News 54 Drinks News 60 Market News

Managing Director: Fergus Farrell

Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

leading volume sales on the Irish market for at least 15 years.

We look at the star performers.

Regulars

T A R A

52 Australia has been

42 In the first of a series

Published by: Tara Publishing Co. Ltd.,

Pat Murray

On The Vine

Special Report

Contactless Payments.

johnwalshe@tarapublishingco.com

Top 20 Wine Brands

46 Jean Smullen

10 Centra First to Accept

Kathleen Belton Editorial & Marketing Director

46

20 Almost 40 local food

Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

Sectoral Reports 22 Ethnic Foods 56 Lunch Box/Back to School

4|Retail News|July/August 2011|www.retailnews.ie

News

Musgrave to Purchase Superquinn Business?

FOLLOWING the news that Superquinn was placed in receivership, Musgrave Group plc has reached an agreement with the Joint Receivers on terms to purchase the Superquinn business.

Speculation has been rife for months that Superquinn was up for sale, with rumours circulating of bids from a number of retail groups, including Asda, Sainsbury’s and Waitrose, as well as Musgrave. However, when Superquinn was placed in receivership, with estimated debts of upto €400m (mainly related to property-secured loans), Musgrave confirmed that it had stepped in to purchase the business.

The proposed sale to Musgrave will secure the long term viability of the Superquinn business, protect jobs and ensure that Irish consumers can continue to enjoy the Superquinn product offer, according to a statement from Musgrave, who are expected to retain the Superquinn branding. Superquinn will remain under the management of the Joint Receivers, pending regulatory approval and the completion of the transaction.

Superquinn has been challenged by the scale of its debt burden and the difficult trading environment. This purchase secures the jobs of 2,800 people and on completion of the sale process, Musgrave intends to invest in the stores and work with the Superquinn employees to develop the future of the business, while Musgrave is also committed to providing existing Superquinn suppliers with the opportunity to continue to supply Superquinn stores.

“Having come to this agreement with the Joint Receivers, we are excited by this opportunity,” enthused Chris Martin, CEO, Musgrave. “Purchasing Superquinn, when approved, supports our growth agenda and will sustain our competitiveness. We are looking forward to working with the

Superquinn team to develop the future of the business.”

Reacting to the news of Superquinn entering receivership, Food and Drink Industry Ireland (FDII) is seeking immediate clarification from the receiver as to whether trade creditors who are owed up to €100m will be paid in full for goods already provided.

FDII Director Paul Kelly said: ”Small, medium and large food and drink manufacturers and suppliers right across Ireland are owed up to €100m from Superquinn. Failure to pay these companies what they are rightly due will have a disastrous effect on the supply chain and affect the immediate viability of many food companies, placing thousands of jobs at risk. Any resolution must benefit all creditors.”

FDII has commissioned an immediate economic assessment to quantify the impact on employment and sustainability of creditors within the food industry.

Chris Martin, CEO, Musgrave.

NCA Board to be Scrapped MINISTER for Jobs, Enterprise and Innovation Richard Bruton TD is to scrap the board of the National Consumer Agency when it is merged with the Competition Authority, after the Government gave the go-ahead to the drafting of the Consumer and Competition Bill based on a draft scheme presented by the Minister to Cabinet. The new Consumer and Competition Authority will not have a CEO, a Chairman or a board and will report directly to the Minister.

“The new Consumer and Competition Authority will be a consumer rights enforcer with real teeth, a strong regulator with the combined resources, experience and expertise Minister for Jobs, Enterprise and to robustly tackle anti-consumer practices and sheltered Innovation Richard sectors in our economy,” said Minister Bruton.

Bruton TD.

Tax

Mark Fielding, ISME Chief Executive.

BUSINESS representatives have reacted angrily to government proposals to introduce a new tax on packaging. Some members of the Irish Small & Medium Enterprises Organisation (ISME), whose businesses are reliant on packaging, are “up in arms” over the proposals, according to ISME Chief Executive, Mark Fielding.

“If brought in, it will place the industry at a competitive disadvantage,” argued Paul Kelly, Director of Food & Drink Industry Ireland (FDII). “As it stands, we already exceed the EU recycling targets. It’s most unusual that we’re going to face the chance of double taxation at a time when we’re not just meeting but exceeding these targets.”

Sinead Finnegan, Executive Director at The Beverage Council of Ireland, told Retail News that “any tax is not welcomed at this point in time”.

The proposed tax was announced as part of the Government’s Programme for National Recovery 2011-2016, which stated

www.retailnews.ie|July/August 2011|Retail News|5

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New Packaging Slammed by Industry that it would “drive a waste reduction programme through an extension of Producer Responsibility Initiative (PRI) and a levy on packaging after appropriate consultation with industry.” In May, the Department of the Environment, Community and Local Government invited contributions from retailers, manufacturers and distributors.

However, industry representatives pointed out to Retail News that packaging manufacturers already pay a tax via Repak, or through self-regulation, under the Irish Waste Management (Packaging) Regulations 1997/2007. Last year, 2300 companies paid €26.4m in levies, which fund recycling measures under Repak’s auspices. There is a fear that the proposed tax will be in addition to this recycling levy.

“We already pay a packaging levy,” said Finnegan, who had yet to gauge the opinions of her members at the time of going to press. “Any additional packaging levy doesn’t make sense to us. We are only one stakeholder in the whole discussion process. The other stakeholders are the public, but they all pay their levy as well, through their green bins and black bins. It is a double tax and it doesn’t really make sense. Repak is working quite efficiently and effectively for us at the moment, insofar as we’re meeting our waste packaging directive obligations.”

Fielding continued: “We’re waiting to see whether this is going to be a double tax, or if all they are going to do is increase the existing one. The danger is, it could be a double tax and catch everybody.”

The Alcohol Beverage Federation of Ireland (ABFI) feels that the proposed packaging tax would neither succeed in raising revenues for Government nor in changing consumer behaviour in relation to packaging. “A lot of work has been done by companies to

increase competitiveness in recent years,” noted an ABFI spokesperson. “Therefore, a packaging levy would put Irish companies at a competitive disadvantage and could also see a return to cross border shopping.

For consumers, this packaging tax will act as another means to suppress consumer confidence and will undo the positive VAT reduction initiative undertaken by the Department of Finance. Companies are hugely committed to reducing packaging and numerous examples exist of this.”

As part of the consultation process, the Department of the Environment, Community and Local Government are seeking submissions on how a levy might be operated and structured, looking at international experiences of similar levies. The deadline for submission to the department is Friday, August 5.

Governmental vagueness about the proposed tax has left many concerned. The ISME Chief Executive said the proposals required more discussion. Sinead Finnegan criticised the lack of detail in the proposals.

“What is the purpose of this tax? What is the objective? Is it to change consumer behaviour? Is it a revenue-generation model? In the request for submission, it’s a waste reduction programme, but we already pay one. There isn’t any detail in it.

It doesn’t say who it’s for, what it’s about, what type of levy it is, who it’s targeting...”

There has also been no confirmation as to where the buck will stop: manufacturing, retail, or the consumer? Inevitably, a packaging tax could affect all three. Nicola Eagles, spokesperson for Unilever Ireland, while supportive of “revenue-raising measures in the current economic climate”, questioned the need for a packaging levy, which she feels would inevitably affect consumers: “It would impact more heavily on poorer households, as they spend a relatively high proportion of their income on groceries and packaged goods, rather than on housing, foreign holidays, and entertainment.”

Government claims the tax could generate between €60m and €80m per annum. However, the original source of this proposal appears to have been a Comhar workshop, in which Christian Frisher, a Danish government representative, discussed the Danish model. In the workshop, Frisher suggested a packaging tax in Ireland could generate revenues as high as €430m. On top of the existing recovery and recycling fees, a new tax could make the total charges on packaging the highest in Europe.

“This would put Irish packaged goods at a severe competitive disadvantage compared with Northern Ireland and other countries, to the detriment of Irish manufacturers and traders,” added Eagles.

Denmark does not have an industry-funded scheme for used packaging. Furthermore the country is reported to be considering the abolishment of its packaging tax, due to the venture’s costly administration.

A tax on packaging would have little to no effect on the amount of packaging waste generated, continued Eagles. “The amount of packaging placed on the market depends primarily on the number of goods that are purchased which, in turn, depends on the economic climate, size of population and other demographic and social trends. It also depends on the amount of packaging required to protect goods from damage or spoilage...”

Paul Kelly, Director, Food & Drink Industry Ireland.

While industry waits to see what the Government will propose, the concerned parties remain sceptical. “With one hand the Government are banging on about employment initiatives, jobs initiatives, and trying to get people back into work,” said Fielding. “With the other hand, they’re issuing increases in bills for electricity, gas, and threatening us with another tax on packaging. It seems to be self-defeating. We need a sustained and vigorous programme to tackle Government-related costs and structural inefficiencies across the total economy. If this is just another bloody tax, it will cripple many businesses who are teetering on the brink.”

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JLC Rates Deemed Unconstitutional RETAILERS under investigation for not paying Joint Labour Committee (JLC) rates have had their charges dropped, in the wake of the High Court’s decision to deem the wage laws unconstitutional.

The National Employment Rights Authority (NERA), responsible for enforcing Registered Employment Agreements (REA), has written to retailers who were under investigation, informing them they will no longer be proceeding with investigations.

Retailer representatives say that retailers should respect existing contracts. A worker who has been receiving a JLC payment has a contract with their employer, whether a written or implied contract, and is still entitled to that payment.

“Retail Ireland is advising member companies that existing employees, who have contracts of employment, which are based on Joint Labour Committee Employment Regulation Orders (EROs) pay and conditions, should continue to receive ERO rates and conditions unless and until those employees freely agree otherwise. Any new employees

hired from July 7 onward may be offered rates and conditions which are not based on any ERO,” Retail Ireland Director Torlach Denihan told Retail News.

Tara Buckley, RGDATA Director General, continued: “We’ve had calls from retailers who have vacancies in their shops and are taking people on. We have told them they are perfectly within their rights to take those people on at the minimum wage, with minimum wage legislation, in accordance with the Working Time Act and the other statutory obligations.”

In July, the High Court ruled JLC wage laws to be unconstitutional. Retailers have the fast food business to thank for the decision: the ruling followed a case taken by a group of restaurants, who argued against the JLC system.

Despite demands from trade unions to introduce emergency legislation, in order to protect the rights of workers, Minister Richard Bruton declined to do so. Buckley agrees with the decision: “There is a lot of talk about protection of vulnerable workers. There is an awful lot of statutory regulation that

protects workers. Why should employers in the retail grocery trade be subject to one set of rules, and employers in every other part of the retail trade be subject to a different set of rules?”

How the High Court decision will affect the jobs market remains to be seen, although Buckley said that RGDATA retailers, encouraged by the reduction of retail wages to the minimum wage, are already taking on new staff.

Minister Burton has announced a “radical overhaul” of the JLC system, to be introduced “early in the next term”, in autumn.

Retail representatives, however, won’t be happy until JLCs are discarded. “Nothing short of abolition of JLCs will satisfy us,” said Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA). “We don’t believe the state should be involved in setting a second band of wage rates, over and above the national minimum wage. From a societal point of view, we can accept there being a need for a national minimum wage. We

Tara Buckley, RGDATA Director General. just don’t see the need for some sectors to have an additional level of wage inflation.”

Torlach Denihan concluded: “Retail Ireland believes that the JLC system is archaic and should be abolished. We will not welcome any move to reintroduce the system and will continue to engage with Minister Bruton and his officials to make clear that we believe that the system should not be reintroduced.”

Tesco Recruits 35 New Local Suppliers TESCO Ireland have announced the recruitment of 35 new small local suppliers at a Tesco Irish Food Expo in Dublin. The recruitment follows two local supplier road shows held last autumn. The event, which was attended by Minister for Agriculture, Marine and Food, Simon Coveney TD, will see the new suppliers produce combined sales with Tesco of over €3m.

Pictured at the Tesco Irish Food Expo are (l-r): Held in the Royal College of Physicians and attended by TDs and Senators Deirdre Collins, Dee’s Whole Foods, Cork; Minister for Agriculture, Food and Marine, Simon from all over Ireland, the Irish Food Expo showcased products from the new Coveney TD; Tony Keohane, CEO, Tesco Ireland; suppliers, in addition to a number of Irish companies who supply products for and Ann Rudden, Áine Handmade Chocolate, Tesco’s own food labels.

Cavan.

Most of the new suppliers are serving stores in their local region, some nationally. Two of the exhibitors have recently won export listings for their products in the UK – Glenillen (desserts) and Kooky Dough (cookies).

“Today is about celebrating our continued support of Irish food, as well as welcoming 35 new small food suppliers onto our shelves,” said Tony Keohane, Chief Executive, Tesco Ireland. “As one of the biggest supporters of Irish food, we will continue our search for even more Irish food products. Our ongoing Irish Supplier Growth Initiative aims to recruit more small local suppliers, more large and medium food suppliers as well as increasing Irish participation in our own label food ranges.”

During the past year, Tesco has worked with a number of established Irish suppliers, increasing their participation in its own label food ranges. Currently, over 100 Irish companies produce some 2,000 products for Tesco’s own label food ranges here in Ireland and the UK. This is worth €200m per year.

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Code of Practice Could Benefit Retailers RETAILERS’ representatives are pushing for the Government’s proposed code of practice to include a set of rules for local authorities and semi-state agencies, as well as suppliers to the trade, such as telecommunications, newspaper, and toll charge providers.

“They all have an affect on the bottom line,” said Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), in an interview with Retail News. “We have no faith in the ability of the industry to agree any type of voluntary code of conduct. If there is to be a statutory code of conduct, then we’re looking for all suppliers to be subject to it.”

Proposals for a voluntary code of practice fell apart after John Travers was unable to find a meeting of minds between retailers and suppliers, as part of a consultation process. Instead, Travers prepared a draft statutory code. Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, has given interested parties until September 1 to respond. After that, he is expected to make the code statutory.

The code has primarily been a supplier-led initiative. Farmers, in particular, have been vocal in complaining about the marginsqueezing efforts of supermarkets.

However, the code could benefit smaller retailers who find themselves on the receiving end of dubious supplier practices. “There are many times when the business person, with a large supplier up against them, has no ability to go to the Competition Authority,” continued Jennings. “They have no ability to go to the National Consumer Agency. They have no

recourse. There is nobody to look after a business to business complaint, to put our cards on the table and say we believe this person is being treated unfairly by a large monolith.”

Tara Buckley, RGDATA Director General, agreed that the code should address the relationship between small retailers and big suppliers. “We’ve heard a lot from the farmers and food producers, but there is an angle on smaller retailers and how they are treated by their suppliers,” she said. “In our consultation [with Travers], we brought up the subject of mobile phone operators, newspaper distributors and others, where we had issues to do with changes in terms of conditions, imposition of unfair practices, unilateral changes in financial terms and conditions with no dialogue or consultation.”

Torlach Denihan, Director of Retail Ireland, told us that the code should cover both sides of the equation: “There are large international suppliers that are bigger than almost any retailer in the Irish market. We believe the provisions of what’s on the table are over-focused on the retail side of the equation, but we are glad to see that the Minister’s draft includes the behaviour of the supplier as well as the retailer.”

The proposed code primarily covers what Food and Drink Industry Ireland (FDII) Director Paul Kelly calls “rampant unfair practices in the grocery sector”.

According to recent reports, over 96% of European food companies experienced “unfair” commercial practices in 2009.

These included the non-respect of contractual terms, de-listing threats to

Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association. obtain unjustified advantages (77%), and unilateral deduction on invoices.

Denihan said that Retail Ireland did not support such tactics and that tough negotiations should respect the law. He pointed out that nobody has ever brought a successful court case, or made a complaint to the Competition Authority, about the behaviour of retailers, that has stood up on investigation. Nevertheless, Retail Ireland is in support of a code of practice. Large groups, such as Musgrave, have also been vocal in their support for the code.

Smaller retailers, without the buying power of large groups, are rarely accused of unfair practices, such as Hello Money, the practice of retailers charging suppliers to display their goods. The code of practice, in that respect, might not only right a few wrongs for beleaguered farmers, it could also level the playing field for retailers as well.

Grocery Market Slowdown THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 12 June 2011, show a slowdown in grocery market growth to below 1% as savvy shopping places value top of consumers’ agenda.

“Customers are adopting savvy shopping tactics in response to increasing pressures on household budgets,” notes David Berry, Commercial Director at Kantar Worldpanel Ireland. “Shoppers are buying fewer groceries to counter product-driven price inflation or ‘trading down’ to cheaper, essential products and switching to the discount retailers. Without the World Cup to boost spending in the market, we may see a real possibility of sales decline throughout the summer.”

With a focus on thrift driving movements in the market, the German discounters reap the benefits. Both Aldi and Lidl posted significant sales growth of 27% and 9% respectively, with the discount retailers outperforming the market. Aldi increased its share from 3.4% last year to 4.3% and Lidl improving on last year’s 5.7% share to secure 6.1% of the market.

Lidl’s surge in growth has now lifted its share to equal that of Superquinn at 6.1% for the first time. Aldi’s phenomenal growth has also narrowed the share gap between the retailer and Lidl, from 2.2 percentage points from growth last year to just 1.8 percentage points this year – establishing Aldi as a further challenger to Superquinn.

Elsewhere, Dunnes and Tesco posted only slight sales growth, of 0.3% and 1.6% respectively – further evidence this month of valueconscious shoppers. SuperValu has felt the pressure faintly this period, posting negative sales growth of nearly 1% and dropping market share to 19.7% compared with 20% last year.

Grocery inflation is at 3.9% for the 12-week ending period 12 Jun 2011, down from 4.9% in the previous period.

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SuperValu Survey Reveals Consumer Cut-Backs NEW research just released by SuperValu reveals the impact of the economic downturn on household expenditure and shopping habits. More than four in five consumers have reduced their household expenditure, with families impacted more than any other consumer segment.

As a result of the recession, two-thirds of consumers have reduced their monthly grocery shopping spend and shoppers are looking to save money in a variety of ways. 75% look for special offers when they are in-store; 56% have used coupons and 52% have increased how many own brand products they buy. SuperValu has seen take-up of its promotional offer increase by 25% over the past year and own brand sales increasing 8.6% since the start of 2011.

In addition, consumers are making more of an effort

to stick to a specific grocery budget. In this respect, 47% are more likely to use a shopping list to avoid random purchases and 64% have reduced the amount of their grocery shopping that goes to waste.

Due to having less disposable income, more and more consumers are entertaining at home and are significantly less likely to spend money on takeaways and ready meals. In fact 57% of consumers are less likely to buy takeaways, 60% are less likely to eat out, while 36% of consumers are more inclined to cook a meal from scratch and 40% of consumers more likely to use own brand products when preparing meals.

The research also reveals how individual consumer segments have been affected.

Mums tend to control shopping for families and are using numerous methods of budget

management to control their grocery spend. Retirees are the least likely to have changed their behaviour.

“Irish consumers are really suffering and there are few bills in the household budget they can affect by careful planning as much as the weekly shop, so this is what they are doing,” said Ray Kelly, Marketing Director, SuperValu.

“In response to this need, SuperValu will invest €260m in delivering price savings to consumers this year in order to make it easier for savvy shoppers to save money every week.

“We know shoppers are spending less, but the ultimate aim is to put seven easy and nutritional meals on the table, at an affordable price.

SuperValu has built its offer to give them what they want - promotions and savings on meal components. We know

this approach is working and we can see it at the tills, with our promotional offer takeup growing by 25% over the past year and own brand sales increasing by almost 10% since the start of 2011.”

New Revenue Strategy to Combat Illegal Tobacco Sales THE Revenue Commissioners launched a new Strategy on Combating the Illicit Tobacco Trade, which will “target and confront those who do not comply” with their obligations under tax and duty regulations. The new strategy for tackling the illicit trade is multi-faceted and is broken down under various strategic headings: • Reduce demand for contraband tobacco through educating the public on the negative aspects of contraband (i.e. tax loss, criminality and increased health risks) and optimised media coverage for prosecutions, significant seizures and enforcement initiatives.

• Maintain compliance of legitimate trade by ensuring existing controls continue to be efficient and effective and contribute to fair trading conditions for all legitimate traders, while minimising the compliance burden.

• More effective and visible interventions through enhanced capability and better deployment of its resources.

• Revenue will further develop co-operation and intelligence sharing at organisational, national and international level.

• Revenue is committed to prosecuting all serious cases of tobacco tax evasion.

The Irish Tobacco Manufacturers Advisory Committee (ITMAC) welcomed the three-year strategy, which begins this year. A spokesperson for ITMAC said; “This new strategy from the Revenue Commissioners highlights how serious the problem is and what is needed to help combat the problem from their end. This strategy is exactly what is needed to help combat the problem, now the Government must follow through on their promise to increase punishments for those that are convicted of smuggling or selling illegal cigarettes. Fines are starting to increase slightly and this is vital to try and deter criminals from involvement in illegal tobacco.”

* SOURCE: AC NIELSEN TOTAL CONFECTIONERY VAL MAT 8WE17ARP11

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Centra First to Accept Contactless Payments CENTRA will become the first Irish retailer to embrace contactless payments, with nearly one million new contactless enabled Visa Debit cards due to be issued to Irish consumers from late 2011. The ‘contactless’ technology will allow customers to purchase items of €15 or under in less than a second, by simply waving their card in front of the card terminal to make payment.

The new technology will see customers able to take advantage of shorter queues and not have to find change in their pockets, due to the prospect of faster transactions because of contactless payments. Contactless payments will be accepted in selected stores in late 2011, before being rolled out across the rest of Centra’s network of 464 stores in 2012.

“With the launch of contactless payments, paying for your cup of coffee in the morning or a sandwich for lunch will be easier and faster than ever,” said Tara Clifford, Centra Marketing Manager. “Centra is delighted to be leading the introduction of contactless payment technology in the Irish market. As the number one convenience store in Ireland, we are committed to investing in innovation which will ensure we continue to provide the best service to our loyal customers.”

Lewis Nolan, VP, Market Development, Mobile and Contactless at Visa Europe, said, “It is fantastic to announce Centra as our first retail partner for the launch of contactless payments in Ireland later this year. Irish consumers and retailers will now also see the significant benefits that contactless payments bring in terms of speed, convenience and security. Contactless has already taken off across Europe, with 20m cards currently in use by consumers.”

Contactless payment is a feature that can be incorporated onto debit and credit cards that allows customers to pay for everyday items up to a value of €15 at point-of-sale, simply

by holding their card or phone over a wireless reader or screen without the need to enter a Personal Identification Number (PIN). Transactions take place in less than a second, giving retailers and consumers speed and convenience without the need of handling cash. As with all payment devices, contactless cards have a number of security features as well as the €15 payment limit on single transactions.

Both Bank of Ireland and AIB have recently announced that they will be distributing contactless debit cards to customers later this year.

Meanwhile, IPSO, the Irish Payment Services Organisation, have advised retailers regarding the security of the debit and credit card terminals, also known as PIN Entry Devices (PEDs), some of whom have been stolen from retail outlets, re-engineered and fitted with data capturing equipment,

allowing criminals to create fake payment cards that are used abroad at non-Chip & PIN terminals.

IPSO are advising retailers to review current security around PEDs, including: • Ensure your PED estate is fully audited and recorded (i.e. serial numbers and any other identifying number and at which outlet and till it is deployed).

• Review placement of internal CCTV cameras to cover till areas.

• Review those who have access to recording equipment. On occasion, when PEDs have been stolen or replaced in the past, CCTV has been turned off or cameras turned away from the criminal activity.

• When returning PEDs to your acquiring bank due to a breakdown, ensure the return is properly recorded and that returns to the

manufacturer are audited.

Cases in other countries show that some returned PEDs have subsequently been found to have been tampered with and reused to commit crime.

• Consider how such a device may be placed at your premises. Staff members may be approached and offered money or other rewards to facilitate the placing of corrupted PEDs at your outlet. Encourage staff to report anybody approaching them in this way.

• Consider IT solutions that are available to detect PED replacement on the system, such as monitors which show if devices have been uninstalled for a period of time. For more information on the systems available, contact your acquiring bank or integrated terminal provider.

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12|Retail News||July/August 2011|www.retailnews.ie

Industry News €20m in

Sales at BWG Trade Show

Jim Barry Named Cork Business Person of the Year 2011 AN Taoiseach, Enda Kenny TD named Jim Barry, Managing Director of the Barry Group, as the MSL Cork Business Person of the Year 2011 at an awards lunch recently. “I am delighted to receive this award today.

Barry Group operates as a team, so I’m accepting this award on behalf of our team. We are fortunate to have developed a fantastic team spirit over the years and I’m extremely proud of the work our employees do,” said Jim Barry, newly elected Cork Business Person of the Year, who is pictured (left), with An Taoiseach, Enda Kenny TD, and Niamh Barry, Barry Group.

Daybreak Opens 16 New Stores So Far in 2011 BWG Foods, operators of the SPAR, EUROSPAR, MACE and XL brands, staged their first ever Trade Show in the Convention Centre, Dublin, recently, generating sales in excess of €20m between retailers and suppliers. Over 600 BWG Foods’ retailers from across Ireland gathered at the venue, taking the opportunity to engage directly with 120 local and international suppliers, attending what was not only a first for the company, but for the industry overall.

“As a company, we have relationships with over 400 suppliers – many of them locally based - we deal directly with over 14,000 customers, and serve in excess of one million consumers every single day. It’s this size and scale that makes us ideally positioned to encourage trade, which can, in turn, impact positively on the domestic economy,” explained Leo Crawford, Group Chief Executive BWG Group, who is pictured (left), with Willie O’Byrne, Managing Director, BWG Foods; and Brian Doyle, General Manager, Donnelly Fruit and Veg.

MUSGRAVE Wholesale Partners retail convenience brand, Daybreak, continues to attract new retailers into the group, and so far 2011 has been a successful year, with 16 new stores joining the group across the country, including stores in Cork, Meath, Tipperary, Kildare, Mayo, Clare, Roscommon and Dublin, with the new store in Phibsboro, Dublin 7, pictured. “2011 is proving to be another successful year for Daybreak, with the addition of 16 new stores to the Daybreak group,” said Paul Kerrigan, Delivered Retail Director, “re-enforcing the Daybreak brand positioning and offering to independent retailers, who benefit from a partnership that offers first class support and a low cost model that allows our Daybreak retailers to succeed in the current economic environment.” Daybreak is on track to open 35 new stores in 2011 and is in a strong position to continually build on this success in the future.

Gala Opens Largest Store GALA Cahersiveen’s regenerated 10,000 square feet site was officially opened recently by proprietor, Terry Dunne, along with former Kerry footballers Darragh Ó Sé and Maurice Fitzgerald.

The new store is providing up to 20 jobs for the local community and is committed to delivering high standards of service to the people of Cahersiveen and the surrounding areas. Dunne’s Gala houses an impressive deli area, a coffee dock with a seating area, and the delicious ‘Baker’s Corner’ range of fresh, bakery products, which has been one of the store’s most popular offerings. Pictured at the official opening are (l-r): Dwayne Dunne, Darragh O’Se, Terry Dunne and Canon William Crean, with local customers.

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14|Retail News|July/August 2011|www.retailnews.ie

Industry News SuperValu Unveils New GAA Advertising Campaign SUPERVALU has just launched its latest advertising campaign entitled ‘Love GAA’, to support its ‘Proud Sponsor, Real Supporters’ sponsorship positioning of the GAA Football All-Ireland Senior Championship. The ‘Love GAA’ campaign is firmly rooted in the special significance the GAA has amongst supporters of this truly Irish game, a passion and commitment that cannot be replicated by any other sport, as it is part of the very fabric of Irish life.

The campaign will be brought to life across a number of key activities, including TV stings, which feature a voice over from the legendary broadcaster, and SuperValu GAA ambassador, Micheál O’Muircheartaigh.

The stings will be aired to coincide with GAA coverage and live games that will be shown on RTE and TV3 this summer. The ‘Love GAA’ campaign has an estimated spend of over €1m. For further information about SuperValu and its sponsorship of the GAA, log on to www.supervalu.ie or check out www.Facebook.com/SuperValuIreland

Oireachtas Media Awards with Gala TG4 news anchor Eimear Ní Chonaola took home three national media awards at the Oireachtas Media Awards with Gala, recently.

Eimear scooped the Gala Gael Star of the Year award at the annual ceremony, beating off competition from Daithí Ó Sé, Aoibhinn Ní Shúilleabháin and Síle Seoige. The Gala Gael Star award was the only award to be voted for by the public, with Gala shoppers and the general public casting hundreds of votes.

Eimear also won TV Personality of the Year for the second year in a row and accepted a special award on behalf of the Nuacht RTÉ/ TG4 team for an outstanding performance in the broadcasting of the first televised leader’s debate in Irish in the run-up to the 2011 General Election. Pictured are Gary Desmond, CEO, Gala; Liam Ó Maolaodha, Director of Oireachtas na Gaeilge, and award winner Eimear Ní Chonaola, TG4 news anchor, at the awards, which celebrate the TV and radio presenters, actors, journalists and programme makers who have excelled in their contribution to Irish language media in the past year.

‘Coffee Conversations’ Business Breakfast DANUTA Gray, O2 Ireland, sat down for a conversation with business journalist Tom McEnaney in front of more than 130 of Ireland’s top business leaders and discussed her success to date and the next steps ahead in tough times. The event, which was held in aid of children’s charity Plan Ireland, was sponsored by Jacob Fruitfield and all proceeds from ticket sales went towards Plan Ireland’s ‘Coffee for a Cause’ in aid of water project in Illili Daratu, a small village in Ethiopia. Plan teamed up with Java Republic to build a water pipeline in this remote rural Ethiopian town, as every day women and girls walk a four-hour round trip to the nearest well. Pictured at the event are Danuta Gray, O2 Ireland, with David Dalton, CEO, Plan Ireland; Tom McEnaney, business journalist; and Richard Collumb, Senior Brand Manager, Jacob Fruitfield.

Largo Invests €2.6m in Donegal Plant LARGO Foods has announced plans to make an additional investment of up to €2.6m in its manufacturing facility at the Údarás na Gaeltachta Business Park in Gaoth Dobhair, Co Donegal. The announcement comes as the company’s new rice and tortilla based snackfood manufacturing line was officially launched by the Minister of State at the Department of Arts, Heritage and the Gaeltacht, Dinny McGinley TD in its manufacturing plant in Gaoth Dobhair. The new snack-food line, which was specially constructed and shipped in from Casa Herrera in California, is now fully operational and supplying the Irish and UK markets with a wholegrain chip snack-food.

“Approximately 70% of what Largo Foods makes in Donegal is exported, principally to the UK. Our strategy is to continue to invest in R&D and high value products to allow us to increase efficiencies, sustain and grow the business in Gaoth Dobhair,” said Ray Coyle, CEO of Largo Foods.

www.facebook.com/galaretail

16|Retail News|July/August 2011|www.retailnews.ie

Industry News SuperValu Adopts Responsible Irish Fish Label SUPERVALU is the first supermarket in Ireland to adopt the new Responsible Irish Fish (RIF) label, furthering its support for the Irish fishing industry. The new label for fish and shellfish has been introduced to ensure Irish fishermen can differentiate their products as 100% Irish in the marketplace, with all seafood bearing the RIF logo fully traceable back to an Irish vessel. Purchasing RIF labeled products will help maintain jobs in the Irish fishing fleet and the Irish seafood processing industry. The label is only available to processors who source fish from Irish vessels which are part of the Responsible Irish Fish association, giving consumers confidence in the origins of the seafood they are eating and reassuring them that it was caught responsibly. Pictured in Castletownbere at the launch of the new label are Martin Kelleher, MD, SuperValu; skipper Damian Turner and Frank Fleming, Founder Member, Responsible Irish Fish.

Applegreen Reaches New Heights for Charity APPLEGREEN reached new heights for charity when a team of 22 employees went to the Lake District in England to climb mountains in aid of the Laura Lynn Children’s Foundation, Ireland’s first Children’s Hospice. The aim was to walk three mountains in three days. Each member of the team raised an individual sponsorship, which was supported by donations from all Applegreen sites in Ireland and the UK and Applegreen’s own suppliers. The team completed their challenge successfully and in excess of €30,000 was raised for the charity. Pictured are Annabel Tonge, Head of Marketing and Sales, Applegreen; Joe Barrett, Retail Director, Applegreen, Philomena Dunne, CEO of The Laura Lynn Children’s Foundation; and Jane Flynn, fundraiser, The Laura Lynn Children’s Foundation.

New Maxol Quality Scheme for Fuel MAXOL has set up a Quality Assurance Scheme called ‘Fuels You Can Trust’, which is aimed at protecting Irish motorists from the hazards of purchasing illegal or tampered diesel fuel. The new ‘Fuels You Can Trust’ initiative will enable customers to easily recognise Maxol stations committed to selling legitimate Irish duty paid fuel. The new initiative comes after the most recent illegal diesel laundering plant raid in Monaghan and sees Maxol retailers throughout the Republic of Ireland participating in a traceability programme, pledging their ongoing commitment to purchasing their fuel exclusively from Maxol and permitting the testing of fuel samples by it.

Participating Maxol retailers will prominently display Maxol’s ‘Fuels You Can Trust’ assurance seal on their forecourts. Pictured at the launch is Maxol CEO Tom Noonan.

Launch of Potato.ie POTATO.IE is a new consumer website which has been launched by the Irish Potato Federation in association with Bord Bia. Both organisations are deeply committed to increasing Irish consumer awareness and knowledge of the benefits of potato consumption. As well as nutritional information, Bord Bia has provided a great number of easy-to-prepare convenient recipes, suitable for every occasion and lifestyle. Potato.ie primarily seeks to impress upon people the important role potatoes play in the health and nutrition of the Irish nation, as its favourite source of energy. The website also provides useful facts and figures on the contribution of the industry to the Irish economy. Pictured at the launch are celebrity chef Donal Skehan and potato fans (l-r): Killian (8), Conor (6) and Ronan (4) Bourke from Greystones, Co.Wicklow

Beck’s Gets Creative BECK’S Vier is calling on all artists, photographers and video makers to upload a striking piece from their portfolio on to the Beck’sVierCreativity Facebook page and be one of seven artists to feature in the new Beck’s Vier advertising campaign. The shortlist of seven featured artists will also win a Sony NEX-V910 camera.

“We are carrying Beck’s long association with the arts into the television and cinema advertising campaign and inviting artists, photographers and video-makers to see their name in lights and their work starring on the small and the large screen,” says Marketing Manager, Nicola O’Connell.

“We are hoping that this will prove to be invaluable to up-and-coming artists – a validation of their creativity and talent.” Logon to Facebook to join: Beck’sVierCreativity.

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Retail News Interview Retail News talks to Niamh Twyford, Senior Brand Manager at Kraft Foods, about the latest innovations from The Natural Confectionery Company and how the brand stays on top.

Victory is Sweet

ANY FMCG brand worth its salt knows the key to winning lies in successful innovation, i.e. product development which results in increased sales and profit margin. Almost since its launch, The Natural Confectionery Company (TNCC) has been an example of how this should be done. Real product innovation is this brand’s forte.

For starters, it was a unique concept when it launched in 2004, with first mover advantage as a confectionery product offering shoppers no artificial colours and no artificial flavours. This central brand benefit TNCC recognised as being very important to its key target audience – parents, who wanted to be able to give their children a treat without exposing them to artificial ingredients. This was a claim very few other brands could make – then and now.

Within six months of launching, TNCC surpassed the incumbent sugar bag brand, becoming the

“

number one brand in the category, a position it continues to hold without falter to this day. At present, parent company Kraft Foods is the number one sugar confectionery manufacturer in Ireland, with a 26% market share (Source: ACNielsen Marketrack w/e 17/04/11), largely thanks to its very valuable TNCC brand. In 2004, the brand won an award for ‘Best New Product Launch,’ followed in 2006 by the Parent’s Choice Silver Medal for ‘Most Effective Marketing Campaign,’ in recognition of TNCC’s success for retailers and consumers.

Capitalising on that strong start, TNCC went on to expand the range, which now contains 10 terrific variants, as well as introducing treat-size and impulse formats, all of which have added value to the brand.

TNCC continues to win awards for its marketing campaigns and continues to dominate the sugar confectionery bag category. And on the eve of two more

TNCC is very much the sugar confectionery solution for young families, the single biggest sugar-consuming segment, because it delivers on their need to provide a treat for their families that is more natural.

”

exciting launches for the brand, TNCC is sitting pretty.

Niamh Twyford, Senior Brand Manager at Kraft Foods, explains TNCC’s innovation strategy and why it works so well.

Would you say NPD is the most important strand of TNCC’s marketing strategy?

“NPD has played a very important role in the growth of the brand. We originally launched with a range of six family bag SKUs, which has now expanded to 10 permanent lines and three seasonal run-out lines.

In addition, we have two treat-size offers and one impulse pack, so the brand provides a solution for every consumption occasion.

“Right now, we are about to launch another family bag, TNCC Fruity Choos, which takes us beyond jelly into a soft chew format, while still offering the ‘no artificial colours, no artificial flavours’ benefit: another exciting development for TNCC. “Then in early August we are bringing TNCC Guzzle Puzzle to market, which is innovation that has not been seen before: jelly sweets in different flavours and shapes, which can be combined to create entirely new flavours. For instance, lime and cinnamon fit together to make cola flavour, or banana and orange to create bubblegum.

“Variety, playability and fun are key drivers of sugar confectionery

www.retailnews.ie|July/August 2011|Retail News|19

Retail News Interview

“

Variety, playability and fun are key drivers of sugar confectionery consumption and through our breadth of range, we can offer something that ticks all the boxes.”

What was the thinking behind Fruity Choos and Guzzle Puzzle?

New from The Natural Confectionery Company, Fruity Choos takes the brand beyond jelly into a soft chew format.

consumption and through our breadth of range, we can offer something that ticks all the boxes.”

What other key growth drivers are behind the brand’s leading position?

“TNCC is very much the sugar confectionery solution for young families, the single biggest sugarconsuming segment. It delivers on their need to provide a treat for their families that is more natural, is a trusted brand, offers variety and fun, but also allows for play and interactivity between all members of the family together.

“As with every category in the current economic climate, TNCC is facing trading pressures. However, we are confident that the brand will continue to grow, driven not only by our NPD lever but also our promotional strategy which wins for consumers and customers alike. The addition of the ROL €1 flash offers to the range have performed extremely well and we plan to build on that in 2012.”

New Guzzle Puzzle is an innovation that has not been seen before: jelly sweets in different flavours and shapes, which can be combined to create entirely new flavours.

“In this category, it is important to continue to innovate, offering shoppers real points of difference in the product offer. Out of a series of concepts, both of these tested extremely well with shoppers, so we feel confident bringing them to market that they are delivering what the consumer wants.”

How will these line extensions work for TNCC and it customers?

“Generally, effective product innovation is so important for the confectionery category because it delivers incremental sales. Both Fruity Choos and Guzzle Puzzle are new formats – chew, which deviates from jelly, and impulse, deviating from hanging bag – so the SKUs are clearly differentiated and capable of driving incremental increases, and expanding the footprint of the brand.

“Also, of themselves, new formats from the number one sugar bag brand naturally drive excitement among existing shoppers, as well as potential new shopper groups.”

What can you tell us about the marketing strategy – what’s the big secret?

“The ‘big secret’ is in the product itself, Guzzle Puzzle. This is the first time ‘magic’ sweets have been launched on the market, so shoppers are in for a surprise. As I mentioned before, the concept of being able to combine two distinct flavours to make a third unique taste is completely new – like magic! So it’ll be fun to see how people react.

“In terms of our marketing strategy, there is significant investment being put behind the brand this year, particularly for the launches we have coming up.

TNCC has the highest level of brand awareness within sugar confectionery, and we intend to build on this

”

platform to ensure consumers know about our exciting new variants.

This will incorporate TV, outdoor, digital, sampling and press, amongst other alternative media, which is an emerging area for TNCC but one we are very keen on developing as it is such an important area for our target audiences.”

What do you have planned to promote the launches this summer?

“Fruity Choos is being launched with six outer HODs to ensure best product visibility in-store. Once these have been sold through, it will then be moved to our TNCC bag stand and planogrammed in prime position for shopper uptake. We have newly designed stands that are being rolled out into trade over the coming months to support this initiative and the base range.

“For Guzzle Puzzle, we are launching with a special introductory ‘two-for-one’ offer, coupled with numerous temporary in-store displays, including pre-filled HODs and counter units, which our sales team will be bringing to customers in August. In general, there will be a total marketing investment of €500k to support the TNCC brand this summer.”

Finally, what are the goals for TNCC going forward?

“TNCC is very much the jewel in the crown of our sugar confectionery offerings and we are very proud of its achievements to date. However, there is a lot more scope for the brand to grow and we are fully behind that. We have some very exciting NPD coming down the track in the future.

“The breadth of the current range offers a solution for every consumption occasion, and with the addition of Guzzle Puzzle, not only will that position be strengthened but it also allows us to extend the footprint of the brand to a wider consumer base.”

20|Retail News|July/August 2011|www.retailnews.ie

SHOP 2011

Enterprising Business

Set For This Year’s

SHOP

Almost 40 local food producers will be showcasing their produce as part of the County Enterprise Board stands at SHOP 2011.

WITH local produce and ‘buying Irish’ being of increasing importance to consumers, the wealth of County Enterprise Board companies that will be showcasing their produce at this autumn’s SHOP exhibition – one of Ireland’s largest food & drink, retail & hospitality shows – is a firm highlight.

Offering high quality, artisan products, almost 40 local producers and small companies are exhibiting under the County Enterprise Board stands – all of whom are hoping to make new business contacts and generate valuable orders.

Taking place from September 27-29 at the RDS Simmonscourt, SHOP has a reputation of being the B2B event that opens doors for smaller businesses. This year, the importance of the event is increasingly evident, with retailers actively pursuing Irish products. The show has been recognised as an ideal platform for new companies to meet major buyers from the country’s multiples, symbols and independent retailers.

It offers invaluable face-to-face engagement, with tasting at the heart of promoting products.

Genuine Opportunity

South Cork Enterprise Board is a regular exhibitor at SHOP, and recognises the show’s value in helping companies from the South Cork area to promote their products on a national level.

“Any opportunity that provides start-up and newly-established businesses with a chance to showcase their products should be valued,” comments Joe Burke, Assistant Chief Executive Officer of South Cork Enterprise Board (SCEB). “As much as possible, we endeavour to bring entrepreneurs from the training room to as many useful trade, sales and networking events as possible.

SHOP is an important event for many new food SMEs – there’s a genuine opportunity to secure sales listings.”

This year, Bullseye Food Marketing, alongside Cork County Enterprise Board, will be accompanying 10 recently launched food businesses to SHOP. All of these new start-ups are thrilled at the prospect of meeting Ireland’s top retail, restaurant and food service buyers, all under the one roof.

Enormous Buzz

Conor Hyde, Managing Director of Bullseye Food Marketing, explains: “There’s an enormous ‘buzz’ surrounding the Irish food sector at the moment and, in particular, Irish artisan food products. There certainly are increasing opportunities out there for ambitious food entrepreneurs. It’s an excellent time to be involved in food production and the agri-business sector.”

Past Bullseye clients that have won product category awards include: Harty’s Pepper Jelly (SHOP Product of the Show 2009); Delicious Gluten Free

Bakery; Dee’s Eat Well, Be Happy; Just Food; and Irish Atlantic Sea Salt (People’s Product of the Show 2010).

“As a direct result of their participation in SHOP, these brands have been picked up by the likes of Tesco, Dunnes Stores, Superquinn, SuperValu, Centra and numerous independent delicatessens and food halls,” enthused Conor. “It will be exciting to see what this year’s clients achieve!”

The companies already confirmed for SHOP 2011 under the Cork CEB banner include: Drombeg Premium Irish Spirit (WCEB); Gookies (SCEB); Just Nuts (CCEB); Pure Celtic Sushi (SCEB); Green Saffron (SCEB); Killcuan Foods (WCEB); The Sausage Man (SCEB); Una’s Pies (CCEB); Katie’s Real Chocolate (WCEB); and Dee’s Wholefoods (WCEB).

Also committed to the show are CEBs from counties Limerick, Kerry, Clare, and Donegal – all of whom will be bringing their finest produce to SHOP in a bid to win new business.

Additional County Enterprise Boards are anticipated to book their space at the show in the coming weeks and help local companies from their areas benefit from the platform that SHOP delivers.

Register for free fast track entry at www.easyfairs.com/SHOP. For more information, contact Lucy Daley on +44 (0)20 8843 8800, or visit www.easyFairs.com/SHOP.

MACE is the longest established convenience shopping brand in Ireland. We’ve been making people’s lives easy since 1960. Now is a great time to move to MACE. Get unrivalled support from the MACE team, benefit from our nationwide advertising and local in store support. Add our unbeatable buying power, exclusive access to the competitively priced MACE own brand range and you’ll always have that crucial competitive edge.

Be a part of the MACE success story – it all adds up to more profit for you.

Call John Tully 086-8189312 and Liam Attridge 086-8521362. www.mace.ie

22|Retail News|July/August 2011|www.retailnews.ie

Ethnic Foods

Foreign

Ireland’s love affair with ethnic cuisines continues to grow, as consumers embrace adventurous flavours at-home.

Affairs

The Uncle Ben’s portfolio offers a The rise in popularity of ethnic wide range of rice and sauce options cuisine continues unabated, as Irish that bring the flavours of the world consumers become more adventurous to mealtimes. Though continuously in their dining and cooking all the creating new flavours, Uncle Ben’s time. In fact, the popularity of Italian, are still very focused on their hero Chinese and Thai food in Ireland products – Sweet and Sour and has grown so much that they are Medium Curry sauces. Uncle Ben’s considered mainstream brands, and rice options include loose, boil in are barely considered ethnic any the bag, express rice and risotto, more. ensuring there is a rice option for However, according to Mintel’s every need.

Global New Products Database The Uncle Ben’s product range offers a wide The latest addition to the Uncle (GNPD), lesser-known ethnic fare range of rice and sauce options that bring the Ben’s sauce family is the ‘Stir Fry’ has enjoyed robust product growth flavours of the world to mealtimes. range which provides consumers in recent years, as ethnic-food lovers with high quality stir fry sauces that and their palates are hungry for more can be prepared with minimal effort, exotic ingredients and flavours. In colours, flavours, preservatives or meeting consumers’ needs for speed 2010 alone, Mintel’s GNPD tracked a monosodium glutamate (MSG). and convenience without compromising 150% increase from 2009 in new food With healthier eating and lifestyles on taste. With five varieties to choose items that contained ‘Caribbean’ in the increasingly driving meal-planning from across the oriental and Thai product description, while Japanese and purchasing decisions, Uncle Ben’s cuisines, Uncle Ben’s Stir Fry has a product launches soared by more than provides consumers with great tasting, variety to suit everyone.

230% from 2009-2010. healthy, high quality products that can For more information, see “Italian, Mexican and Asian be ready in minutes. www.facebook.com/UncleBensIreland cuisine are the more mainstream, In terms of market share, Uncle or www.unclebens.ie. popular ethnic cuisines,” says David Ben’s sauce remains the number one Lockwood, senior analyst at Mintel. brand leader within the ethnic food “But Thai, Caribbean and Japanese category, holding 22% market share of HJ Heinz foods are seeing healthy growth, and the ethnic sauce category and spanning The oriental market is one of the consumers seem to be getting more Oriental, Indian and Mexican cuisines. fastest growing areas within the Irish comfortable with a wider variety of Uncle Ben’s is also Ireland’s favourite grocery industry and with its authentic ethnic flavours.” rice brand with over 57% value share According to Lockwood, “consumers of the rice category (Source: ACNielsen, are becoming more interested in trying Value Share MAT, June ’10). out complicated ethnic dishes at home Mars Ireland launched the Uncle that would usually be prepared by a Ben’s ‘Begin with Ben’ campaign chef in a restaurant”. earlier this year. The campaign In real terms, this can translate is supported by a heavyweight into increased sales right across the PR, advertising and below the ethnic category, from sauces and line marketing. ‘Begin with Ben’ marinades to rice, noodles, coconut launched with an innovative in-store milk and other ingredients associated and advertising campaign, which with ethnic cuisine. represents a new emphasis for the brand, and the category as a whole.

The PR launch with Consultant Mars Ireland Dietician, Aveen Bannon, aimed to Uncle Ben’s sauces offer a wide range show that family nutrition can be of inspirational meals from around the The Amoy ‘Straight to Wok’ Noodle range provides a helping hand to create enhanced through meals based on or world. Perfect for busy families, Uncle delicious stir fries in minutes. built around rice.

Ben’s products contain no artificial

24|Retail News|July/August 2011|www.retailnews.ie

Ethnic Foods credentials and distinctive packaging, the Amoy brand from HJ Heinz is very much on trend, offering consumers healthy, tasty and convenient food through its range of stir fry sauces, soy sauces, noodles and ingredients.

Consumers are constantly looking for ways to experiment with different food types but in a way that does not demand too much of their time, especially during the week. The Stir Fry Sensations range from Amoy offers an extensive range of sauces to help consumers create tasty meals in minutes The Amoy Soy - from traditional Sauce range offers Aromatic Sweet and a wide choice, Sour through to Thai including the Green Curry, Roasted popular Dark Soy Peanut Satay and Sauce.

Succulent Szechwan Tomato.

The Amoy ‘Straight to Wok’ Noodle range provides a helping hand to create delicious stir fries in minutes.

There are four tempting varieties to chose from - Fine/Thread, Medium Traditional, Thick/Udon and spice infused Singapore Noodles, all of which are the perfect accompaniment to Amoy Stir-fry Sensations sauces and vegetables.

The Amoy Soy Sauce range offers a wide choice, including Reduced Salt and Light Soy varieties, in addition to Dark Soy and a variety infused with Chilli.

Amoy also offers an extensive range of stir-fry ingredients, including Chinese Stir-fry Vegetables, Thai Stirfry Vegetables, Beansprouts, Baby Corn Cobs and Coconut milk.

BR Marketing

The Blue Dragon Chinese range, from BR Marketing, is driving oriental category growth in Ireland, through innovative NPD and the launch of a brand new identity.

Building upon the brand’s leading market position in Ireland, Blue Dragon’s relaunch not only encompasses a new brand identity but also innovative new products. The Blue Dragon re-launch is designed to drive interest amongst new and existing consumers in the oriental food category, whilst enhancing

Blue Dragon’s credentials as the authentic oriental food brand. This is being achieved through greater range cohesion and improved brand awareness – on-pack and on-shelf. The brand’s packaging is refreshed with Blue Dragon have launched a range of popular and authentic a new vibrant and cooking sauce flavours, including Chow Mein, Tomato & Sweet Chilli, Sweet & Sour, Chinese Curry and Thai Green Curry. authentic oriental tapestry design. The versatile Sticky Sauce range is perfect use of a new logo, with strong oriental for barbeque season and creating cues, is intended to improve brand family-friendly meals in minutes. awareness, connection and recognition “The summer barbeque season is a amongst consumers, while increasing key period for Blue Dragon, with sales purchase intent and ensuring strong of our condiments increasing by 18.2% impact on-shelf. during this time,” notes Tracy Hughes, Blue Dragon Consumer and Trade Marketing Controller. “We know that

The Blue Dragon Stir Fry Shots range includes Spicy Satay, Sweet Chilli, Sweet Sour, Wasabi Plum, Szechuan Pepper and Chilli Coconut.

consumers are becoming more familiar with Eastern cuisine and want to experiment and be more adventurous with their own cooking – whether in the kitchen or on the barbecue – by adding their favourite oriental flavours to western dishes.

Our Sticky Sauces helps them do just that... giving traditional barbecue or home-cooked food a more inspiring oriental twist.”

Blue Dragon have launched a range of popular and authentic cooking sauce flavours including Chow Mein, Tomato & Sweet Chilli, Sweet & Sour, Chinese Curry and Thai Green Curry, as well as a range of Stir Fry Shots, including Spicy Satay, Sweet Chilli, Sweet Sour, Wasabi Plum, Szechuan Pepper and Chilli Coconut.

Blue Dragon has recently entered the barbeque sector with a new range of Sticky Sauces, available in four restaurantclassic variants - Chinese BBQ, Char Sui, Peking and Teriyaki. The range provides consumers with a convenient short-cut Blue to replicating a range of Dragon has oriental appetisers at home recently entered by basting or marinating, the barbeque sector something which the ambient with a new range of oriental category doesn’t Sticky Sauces, available in four restaurant-classic variants: currently offer. Blue Dragon’s Chinese BBQ, Char Sui, Peking and Teriyaki.

Symbol Group Focus Welcome to the Retail News Symbol Group Focus It’s no exaggeration to say that Ireland’s thriving independent grocery sector is the envy of Europe. Ireland’s population is arguably better served with grocery stores than anywhere else on the planet, which is a tribute to the hard work and dedication of Ireland’s independent and symbol group retailers. The estimated 4,000 supermarkets, c-stores and forecourt outlets that make up this vibrant independent sector are a hugely important source of employment across the country, and make a valuable contribution to the national exchequer.

In this Retail News Special Report, we take a snapshot of the symbol groups operating in the Republic of Ireland, examining the various ingredients in their success and explaining what they each look for in a potential retail partner.

Kathleen Belton Editorial & Marketing Director.

Independents’ Day “The fact that Ireland’s independent retail sector still has a 38% market share, which is significantly higher than in the North (16%) or the UK (10%), is a tribute to the members of RGDATA. These are family owned businesses that have had to face the challenges of the arrival of the global giants and adapt their businesses to survive and thrive. The retail grocery sector is extremely competitive and each of the 4,000 shops, convenience stores and supermarkets that RGDATA represents is constantly looking at how they can manage their businesses more efficiently, attract and retain customers and stay ahead of their competitors. Some have chosen to join symbol groups as the best option for their shop. Others continue to go it alone. What is important is that they have an excellent choice of wholesale groups if they choose the symbol route and that they have the support of a strong trade association.

Some of the finest examples of independent retail grocers have said to me that what they do is a vocation, and they are right. There are things that independent grocers do better than anyone else – supporting their community, providing a local focal point for the town, knowing their customers, providing local employment, supporting other businesses in the town, stocking local produce, making sure their customers get the best service, convenience, quality and value. Big global chains just can’t provide that personal touch, no matter what PR tactics they employ. Independent shopkeepers do this whether they trade under a symbol or under the family name and that’s why we have such a high standard of local shops and the independent sector continues to survive.”

Tara Buckley Director General, RGDATA

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Symbol Group Focus

SPAR Scores on SPAR is one of Ireland’s largest convenience retail groups, having opened its first store in Dublin in 1963. Owned and operated by leading Irish-owned wholesale and retail company, BWG Foods, and part of SPAR International, the brand has been a leading light in Irish convenience retailing, bringing consumers the most innovative products and in-store offerings for almost five decades. The group has grown to 450 high quality and conveniently located community retail outlets across the country and includes three different retail formats: SPAR for neighbourhood shopping, SPAR Express for forecourt shopping and EUROSPAR for supermarket shopping.

The SPAR brand has long been synonymous with innovation and to this day, it remains a core part of the attraction to retailers and consumers alike. Innovation can take many forms and it is important for the SPAR Group to leverage this differentiator so SPAR always stays relevant to the times we live in.

Superior Value & Customer Service

While convenience is the foundation on which the SPAR brand is built, their offering is constantly evolving to meet the needs and wants of customers.

Today, against the current economic backdrop, SPAR is more focused on price and value than ever before, giving shoppers different pricing options, more product deals and better value for money.

“While our offer is always evolving, some other elements of our business

Innovation

never do,” stresses Malachy Hanberry, Sales and Retail Advisory Services Director. “It is our firm belief that we are not in the food business serving people but in the people business serving food, which means superior customer service is also key to our success.”

Store numbers have remained steady at over 450 nationwide.

“Despite the difficult trading conditions, retailers are acknowledging the benefits of the SPAR brand and we continue to hold our own and to open new stores,” says Malachy. “Aside from our passion for retail and drive to be the best in the market, we offer our retail partners unrivalled support in order to help them run sustainable, profitable businesses.”

One of the most obvious benefits for SPAR retailers is the backing and buying power of BWG Foods, which gives them access to a wide range of competitively priced products, as well as expertise. Also, being part of SPAR International means their retailers belong to a brand that is setting best-practice standards right across the world.

Investment in the Brand

From a marketing perspective, SPAR have actually increased their spend throughout the recession, increasing both their local and national media presence. “We have not been shy about

promoting the SPAR brand and our sponsorship of TV3’s The Apprentice and more recently, cookery programme ‘Kitchen Hero’ on RTE, have ensured we stay to the fore of consumers’ minds,” Malachy notes.

SPAR continue to invest in new and bespoke products and in-store offerings. Over the last couple of years, the SPAR own brand range has been expanded significantly, to over 700 products, grouped under three different price points: S-Budget, SPAR Own Brand and the premier Signature Selection range. They also have an exclusive range of sub brands including Kitsu and Glenmor, as well as an exclusive range of wines and spirits.

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Symbol Group Focus Show was not only a first for the company, but for the industry overall and generated sales in excess of €20m between retailers and suppliers.

“Now we must concentrate on stimulating consumer spending, an agenda which must be Governmentled, but requires the buy-in of all industries and sectors,” adds Malachy.

The benefits to SPAR retailers are many and varied.

What SPAR Look For in a Retailer: “ABOVE all else, we try to recruit retailers who share our vision for the SPAR brand and who will collaborate with us to achieve this vision,” explains Malachy Hanberry, Sales and Retail Advisory Services Director. “Over the years, our customers have come to expect a high level of consistency in terms of product, price and service, no matter what store they visit, so we rely on our independent retail partners to deliver on that promise. SPAR retailers are committed to the values which underpin our brand and this is evident through their participation in our annual 5 Star Excellence Programme, which seeks out and rewards the highest standards in retailing.”

Stimulating Growth

SPAR continues to hold its own in what remains a very tough trading environment. “After more than two years of depressed consumer spending, we have hopefully reached stabilisation in retail sales and collectively the industry is dedicated to returning to growth as soon as possible,” Malachy says.

As an Irish owned and operated company, SPAR have been working hard to stimulate business for their retail partners and in June, hundreds of SPAR operators around the country were given the opportunity to attend the BWG Foods ‘Trade Show’, getting access to exclusive one-day deals from over 120 local suppliers. The Trade

Marketing • National and local advertising campaigns: TV, press and on-line; • Strong local marketing support, including an ‘In-store Local Marketing Toolkit’; • National and local public relations support; • In-store displays, ticketing and POS materials; • Monthly promotional activity, including leaflets dedicated to neighbourhood, forecourt and convenience stores; • Consumer promotions; • National and local sponsorship programme; • Entry to national and trade award programmes.

an experienced team of Retail Operations Advisors.

Operational • Access to 500 local and national suppliers through central billing; • Access to local service from a network of 22 Value Centre Cash & Carrys; • Exclusive own brand ranges – S-Budget, SPAR Own Brand and Signature Selection; • Exclusive agency wines through BWG Wines & Spirits; • Exclusive product offerings, including coffee in partnership with Tim Hortons and Insomnia; Signature Selection; Kitsu Noodles; and the Glenmor Meat range; • Category management; • Financial planning; • IT Support.

Training • A bespoke online training programme ‘Virtual Academy’ for retailers’ staff; • HACCP food safety and fresh food advice; • Customer service training; • 5 Star Excellence Programme, promoting store standards; SPAR Retail Council 2011.

• Support from

At a glance Address: BWG Foods, Greenhills Road, Walkinstown, Dublin 12 Store numbers: 450 Contact: Malachy Hanberry, Sales and Retail Advisory Services Director,

086 6055621, mhanberry@bwg.ie;

Colin Donnelly, National Sales Manager

086 3803924, cdonnelly@bwg.ie;

Sean Lavin, Regional Manager (Munster)

086 2541230, slavin@bwg.ie;

Sean Carter, Regional Manager (Connaught & Ulster),

086 8285050, scarter@bwg.ie

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Symbol Group Focus

Londis: A Unique Proposition for

Retailers

With significant price cuts and margin support initiatives, Londis is committed to supporting its retailers.

Originally founded as a cooperative society in 1954 and more recently converted in 2004 to an unlimited plc, ADM Londis offers a unique proposition to independent retailers. Almost 60 years have passed since the Group was first established and during this time, significant changes have taken place both within Londis’ business and within the Irish retail market. Throughout this time however, the Group’s cooperative roots have remained at the forefront of its retail strategy, underpinning Londis’ close and unique relationships with its retail members.

Londis is a group owned by retailers for retailers. Overseen by retail directors, ADM Londis is not managed for the benefit of other private or institutional interests.

This gives their retail partners every assurance that the Group is managed with their very best interests at heart.

Londis are committed to supporting and assisting their retailers and offer the highest quality of franchise support. In recent times, this has meant significant reinvestment of Group profits into margin support initiatives on behalf of Londis retailers.

The company’s structure means that they can give more back in terms of

deep promotional activity, strong rebate terms and other margin support initiatives to support Londis retailers through the current trading environment. Furthermore, Londis retailers enjoy profit sharing through shareholding in the Group.

New Store Openings

Londis’ stated aim for 2011 is to open 12 new stores, supporting an estimated 240 new jobs. This store recruitment objective demonstrates a strong show of faith by Londis in the Irish retail market and indeed, faith in the offering that Londis can bring to independent retailers. More than ever before, Londis are in a position to bring very strong benefits to prospective retailers.

Benefits of Membership

The main advantages in joining Londis can be summarised as follows: Sustainable Margin

The Londis franchise has evolved considerably in recent years. Firstly, as a consequence of their Retailer Owned status, Londis are able to offer more attractive prices and lower franchise costs than other groups.

Londis members earn good margins at very competitive price points and the group has real examples of how they have increased the scanning margin of new retailers, compared to what they were achieving with other symbol groups. Group profits are reinvested in pricing, rebates and dividends to support retail members and are not distributed to other private or institutional interests.

With the highest quality of franchise support, Londis advises retailers across all aspects of their business. The Group recently announced a Green Scheme initiative in alliance with Crowley Carbon, which will see many Londis retailers save an average of 15% off their energy bills.

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Symbol Group Focus and seasonal sales patterns, enabling each Londis retailer to maintain the best product offering within his or her store on a daily basis.

Brand Investment

The Group is committed to building the value perception in Londis stores nationwide. With a value offering which challenges that of multiple competitors, the Group is staunchly investing in above-the-line advertising, which delivers broad reach and a high degree of frequency. In addition, the Group has invested significantly in even further raising the profile of the Londis, proud sponsors of Come Dine with Me on TV3. The Londis first ever Irish show reached over 470,000 viewers! brand, with its Significantly Increased Buying Power sponsorship of Come Dine Through strategic procurement with Me. This has been a initiatives, including its alliance with real coup for the brand, Nisa Today’s, Londis retailers now delivering daily prime time have access to buying power in excess exposure to the Londis of €6 billion. Londis has one of the target market with a very most credible private label offerings in relevant message, 52 the sector and can source international weeks of the year. brands at exceptionally competitive prices.

What Does Londis Look for in a Potential Retailer?

“Most importantly, we are looking for business people who welcome our unique ‘owned by retailers, for retailers’ ethos and who will work hand in hand with our team at Londis Group Support Office to build a thriving business,” notes Joe O’Connor, Head of Sales, Londis. “We look towards prospective retailers who can, with our assistance, build meaningful relationships with their customers, bringing competitive value and superior, friendly service to their local communities.”

competitors and is the reason why Londis will continue to mitigate the impact of the economic downturn by continuing to provide heavy margin investment to members.

The Year Ahead

World Class IT Support Service

Londis believe technology to be the single most important enabler in a retail operation. To that end, they have invested heavily in building a world class Retail IT support service, delivering integrated systems whilst developing a suite of IT applications, such as Self Checkout, mobile ordering and e-SEL’s for Londis retailers.

Furthermore, Londis offer world class business intelligence functions to their retailers, with a powerful range of web and mobile based technologies which aim to provide causal, actionable, real time data to Londis retailers. Indeed, their most recent development, ISIS (Intelligent Systems Increase Sales), is a market first within the grocery wholesale sector. This centralised platform, which leverages up-to-theminute sales information from the Londis Warehouse, ensures retailers benefit from live feedback on Category Management, promotional statistics

The Group has remained profitable throughout the recession, despite passing on significant margin to retailers in terms of deep promotional activity, generous rebates and lower prices more generally. Furthermore, Londis has completed a cost savings programme over the last number of years which gives them a lean and efficient business. Londis’ focus throughout 2011 will remain with current retailers, supporting them with a solidly competitive offering which delivers to them a sustainable margin.

Londis’ unique ownership structure distinguishes the Group from its

Joe O’Connor, Head of Sales, Londis.

At a glance Head Office:

Web: Contact:

ADM Londis plc, Group Support Office, Johnstown, Naas, Co. Kildare www.londis.ie Joe O’Connor, Head of Sales (joe.oconnor@londis.ie)

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Symbol Group Focus

MACE:

Ireland’s Longest Established

Convenience Brand

FOUNDED in 1960, MACE is Ireland’s longest established neighbourhood and forecourt convenience shopping brand. Owned and operated by leading Irish-owned wholesale and retail company, BWG Foods, there are now 240 MACE stores around Ireland, with MACE retailers playing an integral part in their local community.

MACE has a strong presence on garage forecourts, serving the needs of people on the move everyday, while their Neighbourhood stores have the everyday essentials with great ‘Value Deals’ to make it easier on consumers’ pockets. MACE is also dedicated to encouraging and promoting Fair-trade via their two preferred fair-trade coffee suppliers.

MACE has been a part of the Irish community for over 50 years, so understanding their customers remains central to everything they do.

“We are a convenience retailer that promotes a strapline of “We make it easy” and all our programmes tie back to this, whether that is making life easy in stocking the products consumers want or in how we lay out our stores, or making it easy through the value deals available everyday in our stores,” explains Alex Banahan,

MACE Sales Director. “Most importantly, our service is delivered with a welcome hello, a smile and a thank you!”

Increasing Brand Investment

MACE has continued to add new stores to its portfolio throughout 2010 and 2011. “When a retailer puts the MACE brand over their door, they are assured that MACE is investing in driving both awareness and preference for the brand,” Banahan notes. “Unlike some other brands that cut back on marketing investment in a downturn,

we are committed to increasing our brand investment.”

A MACE retailer has many exclusive offerings that can set them apart from their competitors, including: • Strong monthly and tactical promotions; • Exclusive Fair-trade coffee offerings in partnership with Bewley’s and Perk; • Strong deli offers; • An extensive MACE own brand range, including exclusive wine and spirits products; • Unique charity programmes and local community promotions.

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Symbol Group Focus The Benefits of the MACE Store Network THERE are many benefits to being part of the MACE store network:

Marketing •

• •

•

• • • •

Highly visible and impactful national advertising campaigns – TV, press & on-line; Strong local marketing and public relations support; Monthly promotional activity plus deep discount tactical promotions, dedicated to both Neighbourhood and Forecourt formats; High impact In-store displays, leaflets and point of sale materials; Driving consumer footfall through consumer promotions; Involvement in CSR via charity programmes; Entry to national and trade award programmes; Input to MACE brand activity through MACE Retail Council.

Training • • • •

An online training programme ‘uLearn@MACE’ for store staff; On-line advice on Social Media; HACCP food safety and fresh food advice; MACE Excellence Award programme, promoting store standards.

Operational •

•

• • • • •

Access to 500 local and national suppliers through Central Billing set-up; Access to MACE own brand – a growing range of products at great value prices; Access to exclusive Fair-trade coffee suppliers; Access to exclusive agency wines via BWG Wines & Spirits; Category Management advisory service; Financial planning; IT Support.

Partnership Approach

“As a partnership, we want to support our MACE retailers and we do this in many ways – from helping improve store standards through the MACE

MACE Retail Council 2011.

Excellence programme to on-line training and marketing toolkits,” Alex Banahan notes. “From a people point of view, the MACE team are very accessible; we pride ourselves on being there to listen to and to help our retailers.”

The MACE Retail Council is an important structure that helps guide the direction of the brand’s development and members of the Council are there to work with all MACE retailers so that their views are voiced in a structured and proactive way.

MACE looks upon its retailers as partners, as Alex Banahan explains.

“MACE is not standing still, our focus in on offering consumer value and excellent service so we want to work with retailers who share the vision for the brand. A commitment to being part of the MACE Excellence programme and to reflecting the brand values is an essential part of what we look for when a retailer wants to join the team. The MACE strapline is ‘We make it easy’ and any retailer needs to take that ethos on board when bringing MACE into their local community.”

The Future

MACE is performing well in a very difficult trading environment.

Understanding their customers is at the heart of what MACE does, whether they are on the move and visiting one of the MACE forecourt sites, or if they live in the vicinity of one of their neighbourhood stores. MACE is following a growth strategy and continues to invest in driving brand awareness and preference through its strong marketing programmes at both a national and a local community level.

As owners and operators of the MACE brand in the Republic of Ireland, BWG Foods continually invest in stimulating business for their retail partners. In June 2011, hundreds of MACE retailers and managers were given the opportunity to attend the BWG Foods ‘Trade Show’, getting access to exclusive one-day deals from over 120 local suppliers. The Trade Show had a strong focus on BWG and MACE supporting local Irish suppliers and was a huge success for BWG, its customers and the industry overall, generating sales in excess of €20m between retailers and suppliers.

At a glance Address: BWG Foods, Greenhills Road, Walkinstown, Dublin 12 Store numbers: 240 Contact: Alex Banahan, MACE Sales Director - 086 2073776,

abanahan@bwg.ie; John Tully, MACE Regional Manager (Northern Region) – 086 8189312, jtully@bwg.ie; Liam Attridge, MACE Regional Manager (Southern Region) – 086 8521362, lattridge@bwg.ie

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Symbol Group Focus

Gala Performance by

Symbol Group

King’s Gala, Ashbourne, Co. Meath

GALA is an Irish-owned convenience group, established in 1998 and currently employing over 3,000 people in its retail and wholesale operations.

The Gala Group has 275 stores in Ireland, of which 200 are Gala franchise stores.

Through the company’s association with the Stonehouse buying group, it has access to buying power in excess of €2 billion, with a predicted turnover of €500m in 2011.

The Gala Ethos

Gala is known for its great, valuefor-money products and personal,

one-to-one service. Gala also places great importance on developing relationships with local wholesalers and is committed to delivering high standards of customer service, whilst supporting communities. Gala’s charity of choice, the Jack and Jill Foundation, is central to the brand’s corporate social responsibility efforts.

Gala’s also proud to be Irish! This year, Gala is focusing on supporting local Irish suppliers who have been selected to partner with the Group on its own brand range. Consisting of the most in-demand products in the convenience sector, the Gala own

Pictured at the announcement of Gala’s sponsorship of RTE’s Nationwide are Geraldine O’Leary, Commercial Director at RTE, and Gary Desmond, CEO of Gala Retail Services.

brand range offers a combination of quality products at great value prices.

Gala own brand consists of 200 lines, with further expansion planned throughout the year. Quality, Irish products and distribution to Gala’s 200 stores is key, and it is already proven that this commitment to quality Irish produce has been a huge success.

Outlook for 2011

2010 was a challenging year across the board, with new store openings in the single digits, but Gala is viewing 2011 positively. This year, Gala intends to increase the number of stores in Ireland, with a further 12 store openings scheduled. The Group will also be availing of the opportunities that currently exist in the marketplace.

Gala has a value-for-money retailer proposition and is progressive in its nature: therefore, they expect to see more retailers convert to Gala this year.

Retailer support has always been at the core of what Gala Retail Services offers. However, it’s now a critical element of their business, along with innovative fresh food concepts and local wholesaler support. Gala have been assisting stores with new structures, financial planning, store assessments and promotions through one-to-one store visits, cluster meetings and increased content on Gala’s Grow site for retailers.

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Symbol Group Focus What Gala Can Offer: SUPPORT and training of new stores is key to Gala’s success and takes the form of two phases.

Phase one is to educate new retailers on setting up their store.

Gala advises new shop owners on their location, size, exterior planning and design, interior design and layout, and equipment sourced from recommended suppliers. Once these logistics have been finalised, Gala Retail Services’ personnel offer support with the implementation of features such as contract management, category management, fresh food department set-up, merchandising, staff training and store openings.

Phase two focuses on the ongoing support and services provided by the Gala team, such as business planning, financial budgetary, turnover & margin analysis, IT, customer service support and promotional activity. Technology support is also offered online with the GROW website for Gala retailers.

In addition, Gala retailers benefit from the Group’s strategic marketing plan that involves initiatives such as Gala’s sponsorship of Nationwide on RTE and through its digital marketing campaign, including its presence on Facebook.

Gary Desmond, CEO of Gala Retail Services, is pictured at the new Gala HQ.

Pictured at the Gala Oireachtas na Gaeilge Media Awards are Maura Derrane, presenter of Four Live, with Gary Desmond, CEO of Gala Retail Services, and Liam Ó Maolaodha, Director of Oireachtas na Gaeilge.

Gala’s Private Label to Expand HAVING rolled-out 200 new private label lines so far, the Gala private label (PL) portfolio will be expanded continually throughout the year. Gala have partnered with almost 30 small to medium size Irish businesses across the country for their PL. Through the expansion of the lines, they are looking forward to identifying quality products that Gala can give a national presence to under the Gala own label range.

Gala looks for progressive and forward-thinking retailers, where the standards implemented in-store are second-to-none. Gala is looking for store owners with excellent customer service and standards in retailing, combined with solid business acumen.

From a marketing point of view, Gala’s focus is on driving awareness of the Gala brand in 2011. Gala has plans to revamp 10 stores to the new brand image and will also be embarking on major initiatives in 2011 that support community and cultural USPs such as the Gala Oireachtas Media Awards.

Gala will continue to meet consumer expectations through delivering value-for-money offerings and increasing the Gala’s own brand range consists of 200 lines, with number of promotions. The further expansion planned throughout the year.

Gala Group is now in At a glance an excellent Address: Gala Retail Services Limited, Summit House, position to forge

Embassy Office Park, Kill, Co. Kildare ahead with a group of dynamic Store numbers: 275 retailers and has Contact: Michael O’Shaughnessy by email, ambitious plans

moshaughnessy@gala.ie, for the next few

or alternatively telephone 045 910066. years.

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Symbol Group Focus

SuperValu’s SUPERVALU, Ireland’s leading independent supermarket, is set to add 400 new jobs this year to its 15,000 workforce, with the opening of two new stores and extending and refurbishing a further 34, in an investment programme worth in excess of €25m. The new stores will be located at Mountmellick, Co. Laois, and Manorhamilton, Co. Leitrim.

Pictured at the SuperValu annual delegate conference in The Malton Hotel, Killarney, are (l-r): Ciaran Levis, Sales Director, SuperValu; Alan Condron, Chairman, SuperValu Council, and Martin Kelleher, Managing Director, SuperValu

Super Performance This follows SuperValu’s announcement to invest €260m in bringing additional value to consumers in 2011, with the launch of the second phase of its ‘New Ways To Save Every Day’ campaign, which is being delivered without sacrificing SuperValu’s commitment to Irish suppliers or jobs.

SuperValu recorded €2.1 billion in sales in 2010, serving in excess of two million customers every week. The SuperValu brand is instantly familiar to consumers nationwide, thanks to its extensive store network, strong local community support, impactful advertising campaigns, as well as high profile sponsorships like the GAA Football Championship and the Tidy Towns competition.

Part of the Musgrave Group, SuperValu has 192 stores and is the only retailer with a store in every county. SuperValu remains committed to local employment and sourcing from Irish producers. It is the only Irish supermarket with a policy of sourcing

and selling 100% Irish meat and poultry, which is born, bred and reared in Ireland. SuperValu’s commitment to Irish-based producers includes sales of over €1 billion worth of fresh Irish food every year. In 2010, the total purchases of Irish goods and services made by SuperValu, was worth over €1.6 billion to the Irish economy, serving to both create and protect almost 300,000 Irish jobs in the farm, food and retail sector.

At a glance Head Office:

Tramore Road, Co. Cork.

Tel: (021) 4803000 Email: msvc@musgrave.ie Web: www.supervalu.ie No. of Stores: 192 Store Size: Average SuperValu is 12,000 square feet Total Retail Space: 2.1m square feet

Centra Brightens Up Your Day CENTRA recorded €1.4 billion in sales in 2010, and continues to outperform the market, serving over 3.5m customers per week. In 2011, Centra will add 17 new stores and over 500 jobs to its network, 200 of these being created in greenfield sites, representing an investment of €23m

by Centra’s retail partners, reflecting their confidence in the brand.

Centra has recently re-invigorated its brand, highlighting its new ‘Brighten Up Your Day’ strapline and including a bright new look across its

At a glance Head Office:

Tramore Road, Co. Cork.

Tel: (021) 4803000 Email: msvc@musgrave.ie Web: www.centra.ie No. of Stores: 464 Store Size: Average Centra is 2,800 square feet Total Retail Space: 1.3m square feet

store environment, great value for money offering, excellent customer service and an innovative range of products and services, all packaged under the ‘Brighten Up Your Day’ banner.

Over the years, the Centra brand has excelled, not only through its innovative approach and product offering, but across each and every touch point across all stores. Centra continues to provide real value to its consumers, while remaining loyal to its brand values of supporting local communities, local suppliers and local jobs.

Centra Managing Director, Martin Kelleher, attributes Centra’s performance to “the continued success of our brand, our community retail model and our market leading value offer and our innovative, exciting and appealing consumer promotions.”

Part of the Musgrave Group, Centra remains committed to local employment and sourcing from Irish producers. Centra employs 15,000 staff across the country, making it one of Ireland’s biggest employers. Centra

Pictured at the 2011 Centra National Conference are (l-r): Martin Kelleher, Managing Director, Centra; Michael Morgan, Sales Director, Centra; and Gareth Jordan, Chairman, Centra Retailer Council.

also purchased over €1 billion of Irish goods, including a total of €140m worth of Irish fresh food, in 2010, with 75% of all products sold in store sourced or produced in Ireland.

Centra remains top-of-mind with consumers through extensive advertising and strong sponsorship campaigns, including the high profile sponsorship of the GAA All Ireland Hurling Championship and its Action Breast Cancer Campaign.

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Symbol Group Focus

Bright

Outlook for A PART of the Musgrave Group, the Daybreak brand is Ireland’s fastest growing convenience store network.

Daybreak was launched by Musgrave Wholesale Partners in November 2005 and there are now over 150 Daybreak stores nationwide. There were 27 stores opened in 2010 and with 16 opened to date this year, the brand is on target to open a total of 35 stores in 2011. New store openings have taken place across the country, with stores in Dublin, Cork, Meath, Tipperary, Kildare, Mayo, Clare and Roscommon.

The Daybreak brand continues to grow from strength to strength and offers real value for money partnerships to today’s independent

retailers, from low development costs to exceptional promotional offers.

Daybreak continues to be seen as the right choice for independent retailers and brand loyalty amongst its store owners is very strong, which is evident in the fact that no stores have left the Daybreak brand in the past two years to move to competitor symbols: in fact, the brand has

attracted new retailers from these competitors over the course of the last two years.

Daybreak has become the partner of choice for today’s independent retailers who benefit from a partnership that offers first class support and a low cost model that allows the Daybreak retailer to succeed in the current economic environment.

At a glance Address: Musgrave Wholesale Partners, St. Margaret’s Road,

Ballymun, Dublin 11.

Web: www.daybreak.eu Store numbers: 150+ Contact: Thomas Morrison on 086 7714666.

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Symbol Group Focus

How to ESTABLISHED by BWG Foods in 1997, XL was set up by the wholesale division in response to a demand for a local retail concept that offered support, while allowing retailers to retain their independence and community identity. Known originally as XL Stop & Shop, 2009 saw the rollout of a new brand identity, shortening the name to simply ‘XL’, as well as upgrading the overall brand and store image. XL is now the fastest growing symbol group in Ireland, with store numbers heading towards 200. Backed by the buying power of BWG Foods and the convenience of 22 Value Centres nationwide, XL is a progressive neighbourhood store format.

Dedication to Community Retailing

As a group of neighbourhood stores run by independent retailers, XL’s ethos is underpinned by a dedication to community retailing, allied to price and value. Their ongoing aim is to improve the shopping experience for consumers and ultimately drive footfall and sales for their XL retail partners.

XL in Retailing

That means delivering a more customer-centric category management system, coupled with innovation and expansion in popular categories such as coffee, fresh food and wine.

XL opened 30 new stores in 2010, with a further 28 new store openings planned by the end of this year.

Advantages to a Retailer

XL offers retailers the opportunity to retain their independence and local identity, while benefiting from the many advantages of symbol group membership. XL offers a top quality and flexible package, enabling retailers to tailor their shop to consumer needs and react quickly to changing market conditions to help grow their business. XL’s affordable fit-out cost is one of the many attractions, with access to competitively

priced products and innovative offerings via BWG Foods another major advantage.

The Year Ahead

XL has been a high performing brand in the Irish convenience sector and overall store numbers are projected to reach 200 in the coming year. The

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Symbol Group Focus

success of XL is largely down to the fact that their model is fit-for-purpose in the current economic conditions, providing affordable membership to independent retailers who want the support of a group structure and experienced retail operators. In recent years, XL have focused more than ever on delivering value through everyday price reductions and ongoing special offers and promotions, making XL appealing and relevant to retailers and their local shoppers.

Being in partnership with BWG Foods, one of Ireland’s largest and longest established retail and wholesale operators, delivers a number of benefits for both retailers and consumers.

What XL Look for in a Retailer: “WHEN we enter into discussions with a potential retailer, we see this as the first step towards creating a business partnership,” explains National Business Development Manager, Colm Fitzsimons. “We want retailers who are receptive to trying new ideas and concepts and who are willing to contribute to wider group activity for the betterment of the brand.

“We also look for retailers who are committed to maintaining the highest standards in their store and that is why we launched the XL Store of the Year programme two years ago, achieving consistently high standards across the entire group. The XL tag line ‘A great deal more at your local store’, is what we’re all about; by delivering value to consumers and remaining a essential part of the local community, our retailers can drive sales and help build the XL brand.”

XL offers retailers:

• A vibrant and modern store identity inside and out; • A fast, flexible and local service from Value Centre; • Access to over 15,000 products; • Exclusive agency wines; • An exclusive own brand label, providing more pricing options for consumers; • Over 500 suppliers to choose from but only one invoice through BWG’s Central Billing system; • HACCP food safety and fresh food advice; • Category management; • Financial planning; • Customer service training; • IT support; • Marketing and POS support; • Consumer promotions.

At a glance Address: BWG Foods, Greenhills Road, Walkinstown, Dublin 12 Store numbers: 177 Contact: Colm Fitzsimons, National Business Development Manager on 086 807 9051

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Symbol Group Focus

EUROSPAR: SuperEasy Supermarket The

EUROSPAR, the ‘SuperEasy Supermarket’ brand, has been operating in Ireland since 1997. The brand is owned and operated by BWG Foods, a leading Irish owned retail and wholesale group. BWG works in partnership with independent local retailers, serving local communities around Ireland, including 56 EUROSPAR stores.

One of the features of EUROSPAR is their ‘Yes to Irish’ campaign, supporting local jobs, suppliers, producers and community groups. The stores deliver best quality, fresh foods to customers. EUROSPAR has been awarded many local and international awards for innovation and best practice in retailing. EUROSPAR also has international scale through SPAR International, with stores in over 34 countries worldwide.

EUROSPAR is called “The Supereasy Supermarket’ because their stores are: - Easy to get around - EUROSPAR stores are designed to be open, bright, modern and easy to shop in.

- Easy to save money – they promote ‘Supereasy Savings’ as a way for customers to save every

-

-

time they shop with EUROSPAR. Easy to get rewards – with the “Supereasy Rewards” loyalty programme, there are many other benefits to being a EUROSPAR shopper.

Easy to find help - customer service is one of EUROSPAR’s pillars of success. If you have a question, there will be a friendly face to help you.

Last year, four new stores were added to the network and the group continues to work to identify the right partners for future store growth.

National Brand Advantage

The EUROSPAR retailer joining the group has the backing of a national brand and all that comes with that, but is supported in such a way that they can become the supermarket of

choice in their locality.

The national brand advantage gives them pricing and promotions to enable the retailer to compete with other supermarkets in their area. National advertising campaigns drive awareness and demand. Marketing programmes are developed so that they can be adapted to the local store.

Exclusive Product Offers

As a EUROSPAR supermarket, their retail partners have access to exclusive product offers that can set them apart from competitors – every day low pricing; strong monthly

www.retailnews.ie|July/August 2011|Retail News|39

Symbol Group Focus and tactical promotions; exclusive departments such as Chill off-licence; Russell & Ryan Butchers; Baker’s Tray and Discounter Deals. The S Budget discount range means they can compete with the local discounter and an ever-expanding own brand range gives a quality value alternative for today’s shopper.

Rewarding local customers is possible too, through the SuperEasy Rewards loyalty programme, which also provides a vehicle for targeted communication with local customers.

EUROSPAR retailers also have a strong voice through the National EUROSPAR Council of Retailers in driving the direction of the brand development and in daily operational activities.

So what do EUROSPAR look for in a potential retailer? “The EUROSPAR retailer is customer focused, financially astute and wants to work with BWG Foods to develop the brand at a national and local level,” explains Malachy Hanberry, Sales and Retail Advisory Services Director. “They see the benefit of being an independent supermarket owner in their local community, whilst having the backing of marketing, retail operations and store development expertise of BWG Foods.”

Continued Investment

Investment this year in a new TV campaign continues to drive awareness and footfall to EUROSPAR supermarkets. Through constant strong promotional activity, the EUROSPAR brand is fighting for its share of the highly competitive supermarket business. Everyday savings, innovative developments in-store and the development of a loyalty programme are giving further reasons for shoppers to use their local EUROSPAR supermarket, which is leading to a good performance across the store network.

As an Irish owned and operated company, BWG continually invests in stimulating business for their retail partners and in June 2011, hundreds of retailers from around the country, including all EUROSPAR retailers, were given the opportunity to attend the BWG Foods ‘Trade Show’, getting access to exclusive one-day deals from over 120 local suppliers. The Trade Show was a huge success for BWG, its customers and the industry overall and generated sales in excess of €20m between retailers and suppliers.

Services & Support

A EUROSPAR retailer has access to each of the following services and support:

Marketing • • •

•

•

•

•

•

•

•

•

National TV brand campaign; Price & value TV campaign; Local press advertising for deep discount promotions; On-line social media support & advice; Individual localisation for store marketing programmes; All activity backed with PR support & expertise; Access to unique departments - Chill Off-licence, Baker’s Tray, Discounter Deals, Russell & Ryan Butchers; Strong promotional calendar, each supported by impactful literature and Point of Sale; Nationwide An Post door drops of promotional handbills; Access to SuperEasy Rewards loyalty programme for your customers; Driving consumer footfall through consumer promotions;

• Strong CSR activity with Charity of the Year partnership and associated PR.

Training •

•

•

Staff online training service – Virtual Academy; 5 Star programme to promote store standards including Top of the Tree awards; HACCP food safety and fresh food advice.

Operational

• Competitive supermarket pricing and regular deep discount promotional activity; • Access to S Budget discount range and to a strong own brand range; • Access to 500 local and national suppliers through Central Billing set-up; • Access to exclusive agency wines via BWG Wines & Spirits; • Category Management advisory service; • Financial planning; • IT Support.

At a glance Address: BWG Foods, Greenhills Road, Walkinstown, Dublin 12 Store numbers: 56 Contact: Malachy Hanberry, Sales and Retail Advisory Services Director,

086 6055621, mhanberry@bwg.ie;

Colin Donnelly, National Sales Manager

086 3803924, cdonnelly@bwg.ie;

Sean Lavin, Regional Manager (Munster)

086 2541230, slavin@bwg.ie;

Sean Carter, Regional Manager (Connaught & Ulster),

086 8285050, scarter@bwg.ie

40|Retail News|July/August 2011|www.retailnews.ie

Symbol Group Focus

Barry Group

Strides Forward

THE first six months of 2011 have been extremely challenging for the retail sector. Consumers are continuing to multi-shop and remain extremely focused on seeking out promotional offers. This activity presents challenges for the operating performance of all retailers.

Consumer confidence is low, spending continues to contract and finance remains difficult to come by, particularly for SMEs. Consumers can now get much more in their basket/ trolley for less financial outlay.

The overriding focus for retailers continues to be store profitability. Key performance indicators are: Sales, Margin and Overheads.

Mission Statement

Barry Group’s mission statement is: “To be a leading national player in the wholesale distribution market, by consistently providing high quality retail solutions to customers, delivered with the support of our committed, experienced team.”

Barry Group continues to support retailers through a number of initiatives. These include specialist support and advice, from a HACCP Fresh Produce Advisor to IT and Category Management Support. The company also provides support from an in-store design team who ensure that individual stores are designed in a cost effective way to help maximise profit opportunities. The key focus is maintaining and increasing margin rather than just sales figures.

Case Study: Costcutter, Bray, Co. Wicklow.

Proprietor: Mark Malone.

Jim Barry, Managing Director of Barry Group.

Impeccable Standards

Other building blocks to success include maintaining impeccable store standards throughout the Group; engaging experienced retailers who know the business inside out, and utilising quality POS, both inside and outside the stores, in order to maximise consumer interest and engagement.

New Initiatives

In terms of new initiatives, a CD was designed to allow retailers to use their own initiative and promote other products. In terms of marketing and advertising concepts, three weekly promotions are rolled out in national newspaper outlets.

Costcutter Online Strategy

To support the roll out of the Costcutter online strategy, the symbol group is about to launch a new website.

Costcutter has been increasing its online presence as a route to market, and with the increase in online advertising and the launch of new social media channels for the brand, this completes the building blocks for its online presence.

The new Costcutter website will

MARK Malone and his staff at Costcutter, Bray are well positioned to battle their way through the worst of the recession. Mark understands that a partnership relationship needs to exist between wholesaler and retailer. Trust and confidence are key cornerstones of this relationship.

Mark has installed exceptional backoffice, IT and Category Management systems to support the overall business .

Mark credits his fantastic staff with being responsible for Costcutter Bray’s success to date. He and his staff are committed to finding new ways to increase sales and, more importantly, margin.

One recent initiative seems simple but had a dramatic effect on Costcutter Bray’s sales figures. Mark and his staff moved their fresh fruit and vegetables (on offer at a really good price point) to the middle of the floor for greater customer visibility.

The outcome: sales of fruit and vegetables increased five-fold!

feature an integrated Facebook and Twitter feed on the homepage, together with a handy store locator and plenty of offers and exclusive deals consumers have come to expect from the brand that always has more to offer: www.costcutter.ie.

At a glance The Costcutter Supermarket of the Year 2010 Award is presented to Mary and Tom Liddy of Costcutter Roslevan, Ennis, Co. Clare, by Jim Barry, MD, Barry Group.

Address: Tel: Email: Web:

Barry Group, Upper Quartertown, Mallow, Co. Cork.

(022) 30 100 info@barrys.ie www.costcutter.ie, www.barrygroup.ie

SMOKING KILLS Irish Government Warning

42|Retail News|July/August 2011|www.retailnews.ie

Special Report

How Customers

Decide to Decide!

In the first of a series of articles, Damian O’Reilly, Lecturer in Management, DIT School of Retail Management, reports on the changing nature of the consumer purchasing decision, and how retailers can influence that decision.

FOR the majority of Irish indigenous retailers, the fundamentals of the Irish economy are not moving in the right direction. For manufacturers, input costs have risen significantly, with increases in commodity prices, in particular fuel. For the retailer, the increased costs involved in running a retail business have been well

documented (insurance, rates, rents) and there is little change in the flow of bank credit to retailers.

Meanwhile on the demand side, the consumer has become more price conscious and more willing to change where they shop; what has become known as ‘Repertoire Shopping’.

Price Drives Shopper Behaviour

Since 2008, price has become the main driver of consumer shopper behaviour.

The ESRI/KBC Consumer Sentiment Index weakened in April 2011, confirming that spending power is still being eroded. However, it appears that Irish consumers have become

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Special Report

For the last three years, price has been the main driver of consumer shopper behaviour.

more accustomed to the austerity measures that have been imposed by the Government, as the index has not declined as severely as in other economies.

Continued inflationary fears will result in prices becoming more important to the average household in the coming year. This has been evidenced by the increase in market share of the Limited Assortment Discounters (LADS), Aldi and Lidl, and in the consumer demand shift to retailer own brands. The LADS’ combined share now exceeds 10%; and according to Kantar Worldpanel, own label brands now account for 35% of the grocery market.

To counteract the changes in consumer demand (and in an effort to maintain market share), Irish retailers have begun to convey a value message via a large number of price promotions, BOGOFs (Buy One Get One Free),

price reductions and price guarantees.

Retailers have been increasingly using inserts in newspapers to highlight offers, price reductions and to offer redeemable coupons to attract the new ‘empowered’ consumer. This trend is changing how retailers communicate with their shoppers, as the latter now possess more information in managing their shopping encounters.

FMOT Vs ZMOT

In 2005, the following sentence appeared in the Wall Street Journal: “Procter & Gamble Co. believes shoppers make up their mind about a product in about the time it takes to read this [sentence].” P&G coined the phrase, the ‘First Moment Of Truth’ (FMOT) to describe the 3-7 seconds when a shopper first engages with a product on the shelf. They suggested that it is in these few seconds that a browser can be converted into a

buyer. Today, with internet usage and the phenomenal increase in the use of smartphones, it has become popular for shoppers to pre-evaluate the products they purchase. They increasingly seek price and product information and - through the advent of social networking sites (Facebook, Twitter) - peer reviews and recommendations. This has been termed the Zero Moment Of Truth or ZMOT. How has the ZMOT influenced the way consumers make their decisions? First, we should briefly look at the consumer decision-making process, which involves a series of stages. These are: need recognition; information search; evaluation; purchase and post-purchase behaviour. We can use an everyday illustration that demonstrates the first two stages of the process.

Siofra Molloy is a recent graduate from the Retail degree in DIT and is now in the job market. She has succeeded in getting an interview with one of the large multinational retailers. The interview is next week and Siofra decides that she needs a new business suit to create a strong impression. As it is her first ever interview, she looks on internet sites for tips on dressing for interviews.

She also browses a fashion catalogue her mother gave her to see which styles are in vogue. However, as the interview is next Monday, she decides to go to a retail store. Siofra usually shops at Zara and Warehouse, but she decides that neither would have the type of suit she has in mind. Siofra decides to go to Dundrum Shopping Centre, as there is a wide range of fashion outlets. Before she goes, she browses the centre website and notices that they offer private consultations through the ‘Style Counsel’. Now, with a list of stores to visit, she takes the Luas to Dundrum.

Siofra likes to shop with her friend Jennifer but she is on holidays with her parents. But as she values Jennifer’s opinion Siofra shares her shopping list with Jennifer on Kaboodle.com (using her new smartphone). Siofra arrives at Dundrum and visits the store of her choice.

Word Of Mouse

This simple example shows firstly, the need recognition and secondly, the information search as outlined above.

Today’s shoppers are more savvy, have an increasing amount of information available (at their fingertips) through

44|Retail News|July/August 2011|www.retailnews.ie

Special Report the use of smartphones and rely to a greater extent on peer reviews/ recommendations through social media sites. What used to be Word of Mouth has morphed into Word of Mouse.

Retailers need to have an appreciation of how their customer is changing the manner of their decision making, and react accordingly. The amount of information gathering by a customer is determined by the amount of knowledge a consumer has about the particular product or service. The amount of time spent searching depends on the type of purchase. It may seem inconsistent but often consumers who are unfamiliar with a product or service actually search less than those who are regular buyers.

Take for example, a consumer wishing to purchase a new PC. Whilst searching for the best value, they have a brief conversation with a colleague who suggests a Mac may be a better option. The consumer has never used a Mac and is unsure where to look for information and also is uninformed as to what features would be more useful for their future career.

This is where retailers with specialist knowledge can gain a competitive advantage over the competition. A retailer with an excellent reputation for product knowledge and service will attract consumers seeking information.

Limiting the Information Search

Different categories of purchases result in different levels of engagement with information search. Low cost purchases, such as ordering a takeaway meal, become a habitual problem-solving situation as the perceived risks are low. In fact, many take-aways maintain a database of previous orders and are familiar with consumers’ preferences, which means that in many cases, the customer may not have to think at all!

How can retailers limit the amount of information search undertaken by consumers? Primarily, retailers must provide a good selection of goods, so customers can find something to satisfy their requirements within the store. Secondly, retailers need to have a range of services that are important to the customer. In the above example, the consumer who is considering purchasing the Mac may want credit facilities, service back-up, troubleshooting advice. If the consumer is

Damian O’Reilly, Lecturer in Management, DIT School of Retail Management.

in the retail store, the retailer must provide sufficient information to reduce the possibility of the customer visiting other stores.

Interfacing With Brands Online

While the FMOT is still important, the increase in internet access through various devices and the increased sophistication and personalisation of search engines means that many consumers now interface with products and brands before they enter a store.

Consumers now download recipes (ZMOT) and use a list to shop for ingredients. This has led to an increase in the market for specialised spices.

Instead of going in to town for the evening and looking at menus for somewhere to eat, consumers are browsing menus, ingredients and wine lists online (ZMOT). In these recessionary times, where people have become more frugal, many are using online coupons for supermarkets, restaurants, hotels and a variety of services. In many instances, as soon as the meal is over, people post comments on social media sites.

Zappos.com is an excellent example of a company that leverages Word of Mouse. It is the largest online shoe retailer and prides itself on its customer service. Zappos have

over 400 employees at any one time “tweeting” online. They also have 130,000 “friends” on Facebook. Even though they are an e-commerce company, they do not rely on customers buying solely on the basis of price. They do not use coupons, promotions or specials. They rely on interaction with the customer and giving a great level of service. For retention programmes, they inform customers about new brands and styles, while customers can also signup for a targeted mailing list. The chairman’s report stated that 60% of their customers are repeat customers.

The company has grown, not through extensive online advertising, but through Word of Mouth/Mouse.

Conclusion

In conclusion, we can see that to satisfy consumers’ needs, retailers need to understand in detail how their customers make choices as to where to shop and the factors they consider when making a purchase decision. We have outlined the stages in the decision making process; how consumers are becoming better informed through ubiquitous use of smartphones; the importance of the nature of the consumer’s decision and how the retailer can influence the information search stage of this process.

Proud owners of your favourite food and drink brands.

Kraft Foods and Cadbury have become one single business Kraft Foods Ireland.

Our brands meet the needs of people who lead busy, hectic lifestyles, who want convenient snacks that taste delicious, make them feel good and offer good value for money.

Our head ofďŹ ce is in Coolock, Dublin, and is the home of Cadbury Dairy Milk, manufactured in Ireland since 1932.

We employ over 1000 people at our 3 sites across Ireland.

Our team is looking forward to working with you to grow your business.

Kraft Foods Ireland Ltd., Malahide Road, Coolock, Dublin 5, 01-8480000

46|Retail News|July/August 2011|www.retailnews.ie

Top 20 Wine Brands

Top 20 Wine Brands

Jean Smullen examines the Top 20 wine brands in Ireland, and what they have to offer your consumers. strength of Australia on the Irish market. Australian wines are still top in terms of volume sales and command 27% of the Irish wine market of 8.7m cases. While the number one brand, Blossom Hill hails from California, number two is McGuigan (Australia); number three is Wolf Blass (Australia); number four is Santa Rita (Chile) and completing the top five is Jacob’s Creek (Australia) All figures are sourced from ACNielsen/Irish Wine Association April 2011).

Most of the Top 20 Brands were on last year’s list, barring some minor adjustments. The biggest movers are: - McGuigan (Australia) up three places to No. 2 in the chart; - Faustino (Spain) up six places from No. 18 in 2010 to No. 12 in 2011; - New entrant Villa Maria (New Zealand) comes in at No. 18, while Sutter Home (California) drops out of the Top 20.

- All the other brands have only moved up or down a place, this can This is one of the key brands in the also be due to Gallo stable. Gallo have been working discounting and special offers hard at developing brand loyalty and (or lack of) and it shows. The Gallo Group, with key promotions to brands such as Blossom Hill, are encourage sales in extremely adept at the new style of the retail sector marketing and the proof lies in their during the period global sales figures and their number in question. one position here in Ireland.

There was a time when

COMPARE the 2011 Top 20 Wine Brand list with the 2010 list and you will find that many of the same brands appear. Gallo Family Vineyards hang on to their prime position as the world’s top wine brand globally and the Irish market is no different. Blossom Hill, from Gallo, sits firmly as the number one wine brand in Ireland for the second year in a row. The strength of this brand is evident in the figures: Blossom Hill increased its share during the April 2010-April 2011 period by+ 0.8%.

Australia comes in at number two, with the McGuigan range of wines. Three of the top five wine brands are Australian, reflecting the

1. Blossom Hill – California, USA (Gleeson Incorporating Gilbeys)

branding was about the label and the amount of support offered by the brand owners to retailers in terms of advertising support and promotions aimed at adding value to the brand. All that has changed dramatically in recent years.

Today, as well as advertising and promotional support, the wine brand now utilises social media, blogs, broadcast and print media and is becoming increasingly pro-active with the consumer by organising wine events, including tastings and dinners, as well as ‘meet the wine maker’ events. The aim is to develop a connection with the brand, rather than indulging in corporate jargon and marketing speak. These days, the consumer wants to get this information in a language they can understand, so it is vital that they can relate and interact, which is at the core of successfully utilising new media such as Twitter, Facebook etc.

How wine is sold has changed drastically in recent years and so too has the consumer. The younger consumer is much more technically savvy and interaction is vital to them.

Social Media is the new ‘buzz’, but whether this new form of marketing equates to a real return in sales revenue for the huge investment in time and effort has yet to be seen, as it is difficult to quantify. The last few years have had a huge impact on the Irish consumer and how they shop for wine. On-trade numbers are down, pubs and restaurants are closing. The new trends emerging are frugality, ‘sellsumers’ (consumers that buy and sell on line); and ‘cocooning’ (entertaining at home).

Sometimes a name is as much a promise as it is a place.

As the number one New Zealand wine on Retail News’ Top 20 Wines List, Oyster Bay is your greatest opportunity to profit from the rapidly growing New Zealand wine category.

Sometimes the world really is your oyster.

oysterbaywines.com

48|Retail News|July/August 2011|www.retailnews.ie

Top 20 Wine Brands All of these factors have led to an increase in off trade sales in supermarkets and wine retail outlets.

Consolidation of wine brands globally and oversupply of juice mean that the consumer benefits, in the form of greater choice of higher quality wine varieties from varied countries at much more competitive prices.

This is where the wine brand comes in. The diversity of wine can be very complex and the nuances can be hard to grasp. There are hundreds of different grape varieties, as well as complexities of soil, climate, viticulture and winemaking technique, much of which goes over the head of your average novice consumer. The wine brand simplifies these elements: it engages and interacts with the customer, which goes some way towards explaining why brand sales are still strong.

2. McGuigan – Australia (Barry & Fitzwilliam)

This family owned brand has seen increased profile in the last year, particularly in the multiples, which has led to a significant increase in their market share: they have jumped from No. 5 overall last year to No. 3 in 2011. A strong advertising and marketing campaign here in the last year has also helped to increase the brand’s visibility.

3. Wolf Blass – Australia (Edward Dillon & Co.)

Dropping down a place from No. 2 in 2010, the total sales include both the Wolf Blass range and their second label, Eagle Hawk. Wolf Blass is an iconic Australian wine brand. Now owned by Treasury Wine Estates (EMEA), this brand is perceived as offering good quality, especially with their mid-priced range, which the consumer will buy for special occasions.

4. Santa Rita – Chile (Gleeson Incorporating Gilbeys) The first Chilean wine in the Top 5, Santa Rita is down from third place in 2010. Santa Rita utilise their annual ‘Local Heroes’ campaign to build on the historical links between Chile and Ireland and to interact in a very human way with the Irish consumer.

Chilean wine is second overall in terms of volume sales, with 20.8% volume share of the Irish market. This brand is backed by a comprehensive advertising and marketing programme.

5. Jacob’s Creek – Australia (Irish Distillers/ Pernod Ricard)

This is Australia’s most iconic wine brand, which still has a very loyal following here in Ireland.

Their sparkling wine range is extremely good and very competitively priced. They have also been slowly moving up toward the mid-price range, chasing value rather than volume sales: last year they stood at No. 4.

6. Lindeman’s – Australia (Findlater Wine & Spirit Group) This is another Australian mega winery. Like Gallo, they have spread their range beyond Australian shores and now include in their portfolio a range of wines from places like South Africa and Chile, which are sold under the Lindeman’s brand name.

Last year’s No. 5, this is a strong selling brand.

7. Hardy’s – Australia (Barry & Fitzwilliam) This is one of the leading Australian wine brands in the UK market. Its owners, Constillation Europe, sponsor ‘Come Dine With Me’ in the UK, which has a strong following in multichannel Ireland.

Their brand names include Hardy’s Stamp of Australia and Hardy’s Nottage Hill. They also have a range of premium wines, to help create greater visibility of the brand with the wine enthusiast.

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Top 20 Wine Brands 10. Rosemount – Australia (Edward Dillon & Co. Ltd)

8. Torres – Spain (Findlater Wine & Spirit Group)

As well as featuring in the Irish Top 10, for the third consecutive year, Bodegas Torres is the most powerful European brand of still wine, according to ‘The Power 100: The world’s most powerful spirits & wine brands 2011’. In addition to the brand, the Torres family also takes pride of place in ranking 26th among the largest owners worldwide.

The origins of the Torres family in the Penedès region of Spain date back to the 17th century.

There is evidence that, at that time, the family’s ancestors had already cultivated vineyards and traded wine on a small scale.

9. Concha Y Toro – Chile (Irish Distillers/Pernod Ricard)

Conchy y Toro are a cutting edge Chilean winery. Owned by the Claro Group, they are innovative in the extreme, like their major move to light-weight bottles for key brands.

The Castillero del Diablo range works hard with value added, on-pack and cross category promotions. They work hard at engaging the consumer by creating greater awareness of the brand. Concha Y Toro is up one place from 10th in 2010.

Rosemount is one of Australia’s best known wineries. In 1864, a German immigrant, Carl Brecht, established the Upper Hunter Valley’s first vineyard and ran a successful winery until the early 1900s under the name Rosemount. The name was chosen in deference to the region’s Scottish heritage. Bob Oatley established Rosemount Estate in 1969 after a career in the coffee industry.

Rosemount Estate is best known for its distinctive Diamond Label wines, which are at the heart of Rosemount.

11. Cono Sur – Chile (Findlater Wine & Spirit Group) Cono Sur are very strong on their ‘green’ credentials and this is pivotal to the marketing of this brand. In July 2007, Cono Sur became the first winery in the world to obtain Carbon Neutral delivery status. Cono Sur is one of the largest wineries in Chile, one of the largest producers of Pinot Noir in the world and a company who utilise environmental concerns and innovative policies to make their top quality range of wines. The price/quality is outstanding for this very recognisable brand, who offer a wide array of grape varieties and wine styles.

12. Faustino – Spain (Gleeson Incorporating Gilbeys)

Bodegas Faustino is a family run estate from the Rioja region of Spain. With Spanish wine sales on the increase on the Irish market, it is not surprising to see two key Spanish family wineries represented in the Top 20 wine brands. Faustino has a long history here in Ireland, going back to the 1980s where it became synonymous with quality. Their range of Riojas sold by number to define the quality status. Their Gran Reserva, known as Faustino 1, has a distinctive black bottle with white glaze and gold wire that is probably one of the most recognised wines on the Irish market.

13. [yellow tail] – Australia (Gleeson Incorporating Gilbeys)

[yellow tail] is the flagship brand of the Casella family. The wine was created with a simple philosophy, to make a great wine that everyone can enjoy. Indeed, [yellow tail] is ranked globally as the fourth most important brand. Its success is evident here: moving up three places from last year’s 16th position.

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Top 20 Wine Brands 14. Oyster Bay – New Zealand (Cassidy Wines) Delgats Estate produce, Oyster Bay, New Zealand’s ‘uber brand’, which is probably one of the most recognisable wine brands in the world. Given the huge demand for anything New Zealand at the moment, especially Sauvignon Blanc, expect this brand to go from strength to strength.

15. Carmen – Chile (Edward Dillon & Co. Ltd)

Carmen have been producing wine for over 150 years. Over the last 20 years, Chilean wine has become a dominant player in the Irish market. To create the latest range, Carmen spent years searching the country for the locations that would allow each variety to fully express its essence. Carmen’s pioneering approach to producing wine is maintained by its hugely creative and innovative winemaking team, led

by Chief Winemaker, Stefano Gandolini.

16. E&J Gallo – California, USA (Cassidy Wines)

The E&J Gallo range are distributed in Ireland by Cassidy

Wines. These are the flagship brands from Gallo and include the Gallo Family Vineyards range in the mid-price category. The Gallo name is strong and this strategic brand works with lots of partners in order to encourage brand loyalty.

The Turning Leaf range is particularly popular here, while many onlookers expect their new iconic Barefoot brand to hit the Top 20 in 2012.

17. Long Mountain – South Africa (Irish Distillers/ Pernod Ricard)

This brand was created by the same company who created Jacob’s Creek, brand owners Group Pernod Ricard.

This is the first of two South African brands in the Top 20. The formula is much the same as its Australian counterpart, but the varietals differ (Pinotage, for example).

Long Mountain is a good steady brand with high visibility, especially in the multiples.

18. Villa Maria – New Zealand (Barry & Fitzwilliam) New to the Top 20 comes a second New Zealand brand.

Founded in 1961 by its current owner and Managing Director, George Fistonich, Villa Maria is 100% New Zealand owned. Villa Maria has been New Zealand’s leading wine award winner, both nationally and internationally, since the early 1980s. Villa Maria was the first major wine company in the world to declare the

19. Paul Masson – California, USA (Barry & Fitzwilliam) Another Californian icon, this winery is best known for its carafe-shaped bottles, which are a staple for parties all over the country.

This wine has strong brand identification with the consumer and is very widely available in most of the key multiple groups.

winery as a ‘cork free zone’, with all wines produced as of 2004 sealed with a screw-cap. George Fistonich believes the consistency of wines under screw-cap is one of the contributing factors to the company’s incredible success recently. Villa Maria was named one of the world’s 50 great wine producers

by American magazine, Wine Spectator.

20. Nederburg – South Africa (Edward Dillon & Co. Ltd)

Nederburg was one of the first South African brands to be brought into Ireland in the early 1990s and it has enjoyed a very loyal following ever since. Owned by the Distell Group, these are quality midpriced wines offering a range of varietals. Very widely available, this brand has greater visibility here than in the UK, where South African wine brands are significantly stronger. A classic!

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On the Vine

Wizards of

Oz

Jean Smullen looks at the big wine winners from Australia AUSTRALIA’S first vineyards were planted in 1788 in a small area near the Sydney Harbour Bridge. Today, you will find vineyards in 60 designated wine regions, farming approximately 160,000 hectares. Current export figures place Australia as the fourth largest exporter of wine, selling to more than 100 countries around the world and contributing $5.5 billion to the nation’s economy.

Australia has a hugely diverse wine industry with an interesting story to tell. Much of the success of Australian wine lies with the large producers who create and sell, in large quantities, competitively priced wine brands.

However, that is not the only story when it comes to Australian wine. There is a second tier to the Australian wine industry, one that is vastly under-rated and that concerns the innovative Australian producers who are making diverse wines with a great story to tell. These producers are leading the quality drive forward, away from bulk and branded wines, to a range of regional styles and premium wines that are going to be vital for the progression of the Australian wine industry into the future.

Top Performer

Australia has been leading volume sales on the Irish market for at least 15 years if not more. It has been top of the country of origin pile by a mile for at least the last decade. Last year, the best performing countries were Australia and Chile who between them accounted for 47.8% of the total table wine market in Ireland of 8.7m cases.

Australia’s share of the Irish wine market increased by +1.5% in 2010 to 27%.

Much of this growth can be attributed to the special offers of branded and bulk wine. However, no matter what the quality level, it is clear that the Irish love affair with Australian wine continues to grow apace and will continue for the foreseeable future. With emigration back as a fact of life, more and more young Irish are moving to Australia, creating a connection that will help to develop greater awareness and links which are going to help keep the visibility of the Australian wine industry to the fore here.

While the branded Australian wines are one side of the coin, there is a second side to the Australian wine industry that is also very important. The quality and boutique wines and wine styles that have been emerging over the last decade are vital to the development of the Australian wine industry.

Masterful McGuigan THE McGuigan brand, from Barry & Fitzwilliam, continues to go from strength to strength in the Irish market. The Black Label range comprises of a Cabernet/Merlot, Shiraz, Merlot, Chardonnay, Sauvignon Blanc, Pinot Grigio, Rosé as well as McGuigan Black Label Sparkling Chardonnay and Sparkling Rosé. The range enjoys strong above-the-line marketing support, particularly in national press.

Australian Wines Under €10 2010 Oxford Landing Estates Chardonnay (South Australia), RRP €8.50 (Cassidy Wines)

2010 Redfin Semillion/Sauvignon (McLaren Vale), RRP €10 (Liberty Wines)

Oxford Landing Estate, founded by Wyndham Hill Smith in 1958, lies alongside the River Murray near the South Australian river town of Waikerie. This is a benchmark entry level Australian wine that delivers on price/quality.

The Redfin wines were created by Liberty Wines. By working directly with two growers – one in McLaren Vale for the red and another in the Adelaide Hills for the white – Liberty have delivered another cracker. Semillion/Sauvignon is a good blend and one that will appeal to the wine enthusiast.

2009 Berton Vineyard Pinot Grigio (South Eastern Australia), RRP €8.50 (Taserra Wine Merchants) The Berton Vineyard, located in the Eden Valley in South Australia, was established by Cherie and Bob Berton in 1996.

It’s interesting that the Italian for Pinot Gris has gone global now, with Pinot Grigio now seen as a brand name in its own right. Well priced Australian with a recognisable grape name.

2005 Hardy’s Nottage Hill Shiraz (South Australia), RRP €10 (Barry & Fitzwilliam) Launched in 1967, the range was named in honour of Thomas Hardy Nottage, a nephew of the founder, who worked for the family for 66 years. Hardy’s is one of Australia’s top wine brands globally. A must stock!

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On the Vine Marketing Strategy

Wine Australia (www.wineaustralia.com) continues to work on the Irish market and has been very innovative in terms of its generic marketing strategy. Its main focus in recent years has been to highlight regions, regionality and wine styles, the key producers and the innovations that have been globally leading the way in terms of quality wine production.

In the last few years, Wine Australia has offered many themed tastings for both trade and consumers that have been very well run, creating greater awareness with both the trade and the consumer of their premium wines.

The recent emergence of the First Families of Australia, a group of 12 well-known family-owned companies who have come together to represent 16 Australian regions across four states, has been another key initiative. This group is also creating greater awareness for premium Australian wine styles and the regions they come from (www.australiasfirstfamiliesofwine.com.au).

For more information about Australian wine in Ireland contact John McDonnell, Director, Wine Australia in Ireland. Tel: (065) 7077264.

Email: john.mcdonnell@wineaustralia.com

For That Special Occasion 2007 d’Arenberg The Dead Arm Shiraz (McLaren Vale), RRP €20+ (Febvre & Co.) d’Arenberg, a Belgian in Napoleon’s army, was challenged to duel by a higher ranking officer. At that time, the etiquette was that you let the higher officer win, but d’Arenberg defeated and killed him and subsequently went on the run, coming to Ireland, where he changed his name to Alberthauser (meaning nobel house) and marrying into a well known Cork family. His daughter emigrated to Australia, where she changed her name back to d’Arenberg before being married to the current owner’s grandfather (whose surname was Osborn). Chester d’Arenberg Osborn, the current winemaker, is a larger-than-life character whose wines epitomise the best of Australian winemaking.

AUSTRALIAN Wines OVER €10 Jacob’s Creek, Brut Cuvée, NV (South Eastern Australia), RRP €1214.99 (Irish Distillers/ Pernot Ricard) Jacob’s Creek has been the most popular brand in Australia and Australia’s leading export brand for more than a decade and is widely recognised as spearheading the country’s export growth.

This is a fantastic value New World sparkling wine.

When the customer asked for bubbles but wants something other than Prosecco, this is what you recommend. Well made, good value new world sparkling wine at a very competitive price.

2007 Peter Lehmann Wines Eden Valley Riesling, RRP €15-17.99 (Coman’s Wines) The Barossa Valley is well documented as a premium wine region, most notably for outstanding Shiraz. A surplus of grapes in the late ’70s and a potential for disaster in the Barossa caused Peter Lehmann to take the biggest gamble of his life, setting up his own company to honour contracts with growers and take in their fruit. His gamble paid off and many vineyards were saved. Eden Valley is a cool climate

region straddling the Adelaide Hills.

Australian Riesling is world class, and this is a very well made example of the style.

2009 Wolf Blass Red Label Semillon Sauvignon Blanc, RRP €11.69 (Edward Dillon & Co. Ltd) Today, Wolf Blass is the number one selling Australian brand on the Irish market. This wine is made from a blend of 70% Semillion and 30% Sauvignon Blanc and is a good example of a ‘fruit forward’ Australian wine style.

2008 Rosemount Diamond Label Shiraz, RRP €11.49 (Edward Dillon & Co. Ltd) This berried, rich Shiraz embodies the fruit-forward easy drinking style that Rosemount Estate is best known for.

By blending fruit from several premium viticultural areas, the Rosemount Estate winemakers are able to produce wines with layers of rich, ripe fruit. This is benchmark Shiraz, spicy with a hint of pepper and lots of blackcurrant fruit.

2008 Katnook Estate Katnook Founder’s Block Cabernet Sauvignon (Coonawarra), RRP €12-14.99 (Findlater Wines & Spirit Co.) Katnook Estate is one of the heroes of Coonawarra - a small, cool climate area in South

Australia famed for its exceptional Cabernet and Merlot. The name Katnook is taken from a local Aboriginal word meaning ‘fat land’ and vines have been planted on the site since the 19th Century. It took until 1980, however, and the arrival of Wayne Stehbens for the wines to be launched under the Katnook label. 27 vintages on, Wayne is still in charge and has built the winery up into one of Australia’s most respected wineries, twice winning the Jimmy Watson trophy for best Aussie red.

2009 Wakefield Estate (Clare Valley) Shiraz, RRP €12.99 (Findlater Wines & Spirit Co.) This family-run estate is part of the Australia First Family group. This wine has a well balanced structure with great texture and a long finish. This is a benchmark Australian wine style, and illustrates just why Australian wine is so popular with the consumer: highly recommended.

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Drinks News Guinness Launch New Hurling Campaign GUINNESS, a proud sponsor of the GAA Hurling All-Ireland Senior Championship since 1995, have launched a new advertising campaign in support of the sponsorship. Entitled ‘The Power to Lift Us All’, the campaign brings to life the way the game of hurling and its players, because of the unique place it holds in our hearts, can inspire and thrill a nation. “With this campaign, we wanted to recognise hurling as a uniquely Irish icon and an inspiration for people across the country,” enthused Guinness Brand Manager, Barry Fitzpatrick. The overall campaign will also include PR & digital activity and a media partnership with Newstalk.

Appointments at Pernod Ricard IN line with its policy of internal promotion and international mobility, Pernod Ricard has announced a host of appointments, taking effect on September 1. Alexandre Ricard, currently Chairman & CEO of Irish Distillers, will be joining the Group General Management team under the responsibility of Pierre Pringuet, as Managing Director, Distribution Network. Anna Malmhake, currently Marketing Director of The Absolut Company, will succeed him as Chairman & CEO of Irish Distillers. She will report to Thierry Billot, Managing Director, Brands. Anna Malmhake will also be a member of the Pernod Ricard Executive Board. Conor McQuaid, currently International Commercial Director of Irish Distillers, is appointed Managing Director of Pernod Ricard South Africa (from August 1, 2011). In addition, the Group announces the creation of the position of Managing Director of the Business Innovation Group (BIG). This role will be filled by Alain Dufosse, currently Managing Director of Pernod Ricard Deutschland and the Germany-Austria cluster.

Cobra Founder Inspires Business Leaders LORD Karan Bilimoria (right), founder and chairman of Cobra Beer, was joined by Dublin Chamber of Commerce President Imelda Reynolds and Niall Phelan, Molson Coors Country Manager, as he addressed more than 120 representatives from a range of companies including Bank of Ireland Group and Vodafone Ireland Plc, at an event at the Dublin Chamber of Commerce. Lord Bilimoria talked about how he started his business in 1990 when he was over £20,000 in debt and the country was in recession and transformed it into an international beer brand, growing his company into an operation with offices on four continents, brewing operations in five countries and exports to over 45 countries.

Bacardi Together Poll Results IRISH online users are now spending eight hours per week on social media, a whole working day, with 18-24s spending 11 hours. According to the Bacardi Together Poll of 1,470 adults surveyed by Behaviour & Attitudes via their Acumen panel, despite the smartphone revolution (38% of the online population own one), we still crave the joys of face-to-face connections, as 76% admit that one can only have meaningful relationships in person. When asked how they prefer to interact with others, almost nine in 10 people strongly prefer face-to-face communication with immediate family (88%) and nearly as many with close friends (82%).

“Despite the dominance of social media in our lives, human instinct is to get together and share experiences with our friends and family and nothing can replace that real connection,” noted Tiernan O’Morain, Bacardi Market Development Manager. “Being a family-run business for the past 148 years, Bacardi has always focused on the importance of spending time with friends and family.”

Appointment at William Grant & Sons

GLOBAL premium spirits business, William Grant & Sons Ltd has announced the appointment of Damien Heary as Global Planning and Innovation Director. Based at the company’s Global Marketing Office in Dublin, he leads innovation and planning teams in Ireland, the UK and US. He assumes responsibility for generating and applying consumer insights to drive brand marketing activity for the entire William Grant & Sons portfolio globally. He will also lead the further growth of an innovation culture across the company, in the development of new products.

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Aluminium & Steel rollershutters Steel Security & Fire doors Aluminium & Steel Shop fronts Rubber Crash Doors Insulated Sectional Doors High Speed Cold & Clean Room Doors Maintenance & Repair Department

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Lunch Box / Back to School

Mid-Day

Movers

The lunchtime and Back to School market is a valuable one, with massive profit opportunities for savvy retailers.

While Irish consumers may not be willing to shell out big bucks on gourmet restaurant lunches these days, they still like to treat themselves and their kids at lunch-time, with attendant profit opportunities for the retail trade.

More consumers than ever are preparing their own lunch, which may not be great news for your deli counter, but can mean an increase in sales across areas like bakery, soup, deli meats, salads, fruit, yogurts, cereals etc. Indeed, the trend towards value is prevalent in the lunch sector, as much as anywhere else in-store, with the prevalence of meal deals. Just like the continued rise of take-aways in lieu of restaurants, the lunch market still presents opportunities for food suppliers and retailers in terms of meal occasions to develop or promote their products around.

The lunch-box market also includes kids, however, and the valuable Back to School period is almost upon us.

According to the results of a new survey into Back to School spending, carried out by Amárach Consulting on behalf of the National Consumer Agency, 74% of parents budget for Back to School costs, while 61% of parents compare prices across stores when purchasing Back to School items, with a similar proportion purchasing items on sale or on special offer.

The Back to School period is a crucial part of the calendar for grocery, with Kellogg’s estimating that the breakfast cereals category has grown

by 13% during this period over the last two years. The start of the school year, as well as being busy in its own right, is also the time when habits are formed that last the rest of the year.

Consumer research shows that the Back to School shopping period starts about two to three weeks before schools return from the summer holidays and stretches out a further two to three weeks “back at school”. The main spike in sales is generally seen during the last week in August.

“The last few weeks of the school holidays can be one of the most lucrative periods of the year, but retailers must ensure their Point of

Sale displays work harder than ever to maximise revenues in the face of aggressive price wars and high profile promotional campaigns,” notes Debra Jamieson, Director for UK Point of Sale. “There’s still time to reach out to engage with customers. This might mean, for example, employing freestanding poster holders which can enable them to present striking visual promotions and change them quickly in line with sales trends.”

Kellogg’s

The Back to School period is undoubtedly a crucial time for the grocery retail trade. A habit-forming

Kellogg’s are set to launch a massive through-the-line consumer campaign, entitled ‘Let’s Make Today Great’, which focuses on making the best of every day – not just the first day of school.

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Lunch Box / Back to School time, it marks the start of a new routine for many consumers and an opportunity for retailers.

The breakfast cereals category has grown by 13% during the Back to School period over the past two years, with sales now worth over €21m during the key August-September period. Over 10 tonnes of Kellogg’s kids’ cereals per day are sold during this time, representing a huge profit opportunity for retailers.

To maximise this occasion, Kellogg’s are set to launch a massive through-the-line consumer campaign, entitled ‘Let’s Make Today Great’.

Running through August and September, ‘Let’s Make Today Great’ focuses on making the best of every day – not just the first day of school.

The marketing campaign will consist

The Rice Krispies Snack Bar from Kellogg’s, hugely popular during the Back to School period.

of TV, radio and in-store POS and a substantial trade promotional plan that aims to deliver added-value on the core range of Kellogg’s cereals and snack bars. Contact the Kellogg’s account team on (01) 8429100 to make sure your business makes the best of this great profit opportunity.

Unilever

Pot Noodle continues to be Ireland’s leading pot snacks brand with 40.5% market value share. YTD value share growth stands at 270 basis points.

YTD Volume growth stands at 70 basis points. Pot Noodle is growing volume share faster than the market growth rate, emphasising the overall strength

Pot Noodle: Ireland’s leading pot snacks brand.

of the brand (Source: ACNielsen, Extended Scantrack , 2010).

Pot Noodle offers a wide variety of choice to consumers, with a great range of flavours.

Chicken and Mushroom and Original Curry lead the way as the nation’s favourite variants.

Their oriental flavours, including Chinese Chow Mein and Sweet and Sour, continue to experience strong growth, indicative of the strength of the whole portfolio. Each Pot Noodle delivers a full-on taste sensation!

For those looking for more from their Pot Noodle, the popular King Pot is also available in Chicken and Mushroom, Original Curry and Bombay Bad Boy Flavour.

The big news for 2011 is the launch of Pot Noodle Bombay Bad Boy, which is replacing Southern Fried Chicken throughout all retail outlets in Ireland. 100% of Pot Noodle’s ATL campaign this year will be across a digital medium where the brand can actively build a conversation with a broad consumer base. Pot Noodle Ireland already has over 16,500 fans on Facebook! Pot Noodle will also be engaging in BTL sampling initiatives throughout the year: 30,000 Pot Noodle samples will be going out across college campuses to ensure the brand continues to drive penetration in the marketplace.

In the run-up to the key Back to School/college period, now is

definitely the time to stock up on some of consumers’ favourite Pot Noodle variants!

HJ Heinz

Through its Baked Beanz, Pasta and Soup brands HJ Heinz has long been associated with healthy and convenient snack foods. Heinz’s commitment to investment in true innovation sees it set to remain a keen player in this sector into the future. Product launches such as Heinz Beanz Fridge

Heinz Beanz Fridge Pack is a reclosable pack, developed for consumers who use more than a can or only part of a can in one sitting, and the 1kg pack is the equivalent of almost two and a half cans.

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Lunch Box / Back to School Pack and Heinz Snap Pots ensure that Heinz continues to satisfy consumer demand for convenience, choice and nutrition, without compromising on taste or quality or the addition of artificial colours, flavours or preservatives.

Heinz Snap Pots are ideal for consumers who seek an even quicker way to enjoy Heinz iconic Baked Beanz and Spaghetti Hoops. Each Snap Pot pack offers four individual 200g portions that are ready from the microwave in just one minute, making them ideal for busy families and lunch and snack occasions, both at home and at work. In addition, because Heinz Snap Pots can be popped directly into the microwave, there is no the need to hover by the hob or add to the washing-up!

Launched in 2010, Heinz once again invigorated the beans category by adding a new and innovative format to its iconic range. ‘Heinz Beanz Fridge Pack’ is a reclosable pack, developed for consumers who use more than a can or only part of a can in one sitting, often resulting in wastage of the remaining, unused beans in the fridge.

The new 1kg pack is the equivalent of almost two and a half cans. Once opened, the ‘Fridge Pack’ will stay fresh in the fridge for five days, allowing consumers greater flexibility to use as many beans as they like before resealing the screw-top and putting the bottle back in the fridge.

Heinz Beanz Fridge Pack is ideal for on-the-go families who often eat at separate times of the day.

Heinz Beanz Fridge Pack is being consistently supported with an extensive package, including a dedicated TV ad, digital media and instore activity.

innocent

The kid’s smoothie market is now worth €5.7m and has grown by 18% in

the past year (Source: ACNielsen Total Scantrack, 52 wk value sales, June 12, 2011). innocent is the clear market leader, with 90% market share. Made with nothing but fruit, kids love the taste of innocent smoothies and parents love them because it is an easy way to get fruit into the kids.

The Back to School period is the busiest period of the year as people re-stock for the beginning of the school year.

Back to School 2011 is set to be the biggest yet, with the launch of the newest addition to the innocent family – innocent kids juicy drink. Made from 100% pure fruit juice and a splash of spring water, innocent kids juicy drink is a refreshing addition to the lunchbox. There are two recipes in the range – apple and orange – and the RRP is €3.99 for five 200ml cartons. Like the innocent smoothies for kids, kids juicy drinks contain no sweeteners, no colourings or preservatives, no additives, no bits; they are never ever made from concentrates and are perfect for school lunchboxes.

The ever popular alphabet magnets will be returning to special packs of innocent smoothies for kids and innocent fruit tubes from September for a limited period. To support the busy Back to School period, innocent will be investing in TV advertising and media promotions.

See www.innocentkids.com or www.innocentdrinks.ie for more information.

Panda Peanut Butter has been updated with a brand new look across both flavours in the range, Smooth and Crunchy.

Panda

Panda chocolate spread, from Boyne Valley Group, has always been a real favourite with Irish households, but now the range has been updated with a brand new look and a delicious new recipe. This range includes Superb Chocolate Spread, Hazelnutty Chocolate Spread and Tongue Twisting Two Tone Spread. The eyecatching packaging is sure to appeal to children.

This exciting new look also features on the Panda Peanut Butter range.

Panda Peanut Butter comes in two flavours, Smooth and Crunchy. Panda peanut butter has a special recipe to give an authentic American style taste.

Panda Dippers are a brand new addition to the Panda range. These little pots include mini crunchy breadsticks and hazelnut and vanilla

innocent have a whole range of healthy products for Back to School 2011, including smoothies for kids, innocent fruit tubes and new innocent kids juicy drink.

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Lunch Box / Back to School dip. Available in a four-pack, Panda Dippers are sure to be a hit for school lunchboxes, picnics and handy treats.

Gem Pack Foods Ltd

The Sun-Maid raisin brand, distributed in Ireland by Gem Pack Foods Ltd, is one of the 10 most recognised brands in the world.

Introduced onto the Irish market in 1994, Sun-Maid has become a popular brand, and consists of wholly natural raisins with no oils or glazing agents.

Children love the freedom of snacking with their own mini-box of Sun-Maid Raisins, making them ideal for lunch boxes. They are also great for everyone in the family, and perfect for packed lunches or quick snacks, contributing to consumers’

Mini Babybel has all the natural flavour and nutritional goodness of real cheese, making it a perfect lunchbox snack solution.

enjoyed at any time. Mini Babybel has all the natural flavour and nutritional goodness of real cheese, making it a perfect lunchbox snack solution. Mini Babybel Original is sold in nets of six

and 12, and the Light and Cheddar varieties are sold in nets of six. Mini Babybel is supported by ongoing TV advertising, as well as strong trade promotions.

Sticking with Henkel

Sun-Maid Raisin Mini Snacks go anywhere, are always ready to eat, won’t spoil, don’t require refrigeration, and are 100% natural.

recommended five-a-day fruit and vegetable consumption. Sun-Maid Raisin Mini Snacks go anywhere, are always ready to eat, won’t spoil, don’t require refrigeration, and are 100% natural.

Horgan’s Delicatessen Supplies

Mini Babybel is an instantly recognisable brand with its distinctive red waxy jacket. Its novel ‘zipper’ opening makes it a fun cheese to be

WHETHER at home, at school or in the office, Pritt Sticks have revolutionised our gluing habits, ever since Henkel launched the world’s first glue stick in Dusseldorf, Germany in 1969. Over 40 years later, a Pritt Stick is purchased almost every second of the day – testament to the brand’s popularity amongst both children and adults.

Since Dr Wolfgang Dierich’s invention, more than 2.5 billion Pritt Sticks have been manufactured - enough glue to leave a trail of adhesive up to Mars and back. Every year, over 130m Pritt Sticks are sold around the globe, as the glue continues to grow in popularity. The brand was even the first to be awarded a ‘Space Proof Quality’ certificate when it was used at the International Space Station (ISS) in 2001.

The superbrand has become such an integral part of everyday life that, in many cases, ‘Pritt Stick’ directly replaces the word ‘glue’ in conversation.

Safe, solvent-free and made from natural resources, including sugar as a core ingredient, Pritt Sticks have always been immensely popular with children and have become a big hit in office culture too.

Pritt’s long-term goal is to continue the tradition of coming up with new ideas and concepts that meet the needs of everyday life for those who use Pritt on a daily basis. Time doesn’t stand still and neither will Pritt; its products will become stronger, faster, safer and more colourful as time goes on, which is why it will always be the nation’s favourite glue.

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Market News Denny’s New Easy Open/Close Sausage Packs THIS month, Denny will launch their new easy open and close Denny Gold Medal Pork Sausage packs. The same great taste of the nation’s favourite sausage is now even easier to get on the pan or under the grill. The launch will be supported by a national and regional focused print and broadcast campaign, which will commence in August. The new Denny Gold Medal Pork Sausage packs are being rolled out in response to consumer research, which was recently conducted by Denny, whereby consumers found the current Denny Gold Medal Pork Sausage packaging difficult to open, generally having to use a knife or a scissors. Now with the new Denny Gold Medal Pork Sausage packs, no knife or scissors is needed, meaning there is less handling, so it is the perfect sausage choice for busy parents.

New Twirl Bites NEW from Cadbury this August, Twirl Bites is being touted as an ideal new format for the Twirl brand, due to its share-ability. The chocolate bags category is currently performing strongly, growing at over 5% (Source: ACNielsen Marketrack, 8we 17/04/11), which is being driven by innovation in sharing products. With Twirl Bites, Cadbury is following the great success of Caramel Nibbles and Crunchie Rocks, introducing a sharing bag of bite-size pieces of Cadbury Twirl. To promote the launch, an in-store sampling campaign will drive shopper trial, while pre-filled HODs will also be made available for ease of display and to give visibility and additional siting.

The launch will also be supported by nationwide marketing for the Twirl brand, which will include TV advertising.

New Bewley’s Ziploc Coffee BEWLEY’S has made great tasting coffee easier than ever for consumers to enjoy at home by launching new resealable fresh coffee packs in Ireland for the first time. The vibrant new range of fresh ground coffees includes a recloseable ziploc strip, an airtight freshness valve, foil packaging, coffee strength guides and the packs are imprinted with an easy to understand three step guide to fresh coffee making at home. The new resealable ziploc coffees are being launched in five varieties - Gold Roast, Rich Roast, Java, Kenya and Organic Guatemala (all 227g packs). Two new varieties join the range - Araku India and Panama, marking the first time that an Indian coffee has been launched in Ireland or the UK. Mark Saunders, General Manager of Bewley’s Retail & At-Home Division, is pictured launching the new range with a larger than life Ziploc fresh ground coffee bag.

SuperValu’s New Labelling on Salads & Veg SUPERVALU has launched a new on-pack label to reassure consumers of the origin of its Irish salad produce.

SuperValu’s sourcing policy means that it buys Irish salad and vegetable produce whenever possible and its commitment to Irish-based producers includes sales of over €1 billion worth of fresh Irish food every year. 67% of all the fruit, vegetable and salad produce it sells is Irish. “Our new label will help to further promote Irish suppliers and also give consumers the peace of mind they need, around the country of origin of the salad produce they are purchasing,” said Martin Kelleher, SuperValu Managing Director.

Corona Just Got Bigger BARRY & Fitzwilliam Ltd and Corona Extra have launched a new bigger bottle size for Corona Extra. The new size is 355ml, offering the consumer 7½% Extra Free. This replaces the original 330ml bottle. Following years of persistent brand building, marketing activity and nationwide sampling campaigns, Corona Extra has been a phenomenal success in Ireland, which is the most important market for Corona Extra in Europe, per capita. “We believe this bottle size provides more value to both the customer and trade in these challenging times,” noted Michael Barry, Managing Director, Barry & Fitzwilliam.

“That is why we have kept the price the same, despite higher duty implications from the increased bottle size.

Corona Extra celebrates it’s 21st Birthday in Ireland this year and the 7½% extra free is an extra-ordinary way to celebrate.”

Savour the Flavour with Guzzle Puzzle ON sale this August, Guzzle Puzzle from The Natural Confectionery Company is a unique and exciting addition to the sugar confectionery category. The ‘magical’ product features different jelly shapes in different flavours which fit together.

The magical part comes when the jellies are combined to produce entirely new flavours: cinnamon and lime create cola; orange and banana give you bubblegum; raspberry and lime make ‘pink lemonade.’ The Guzzle Puzzle concept is unique and certain to drive interest in the sugar category. To maximise sales potential, the product is available in both pre-filled HODs and counter units, as well as by the case of 36.

TNCC brands will be supported this summer with a €500k campaign, including TV, online/digital and press advertising.

IF IN DOUBT - LEAVE THEM OUT SMOKING IS FOR ADULTS AND JOHN PLAYER BELIEVES THAT CHILDREN SHOULD NOT SMOKE. PLEASE BE EVER VIGILANT. IF THERE IS ANY DOUBT ABOUT A PERSON'S AGE ALWAYS REFUSE THE SALE. INFORMATION FOR TRADE CUSTOMERS ONLY.

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Shelf Life JULY sees the launch of fantastic new parenting magazine ‘Easy Parenting’ from Zahra Publishing. Easy Parenting is aimed at all parents, with its motto being ‘You never stop being a parent’, providing practical solutions to the daily challenges of busy family life. A bi-monthly publication, Easy Parenting promises to be a primary source of advice and information on pregnancy and parenting, with an RRP of €2.90. The launch of Easy Parenting is also being poly bagged with Easy Health & Living for €3.95 saving the consumer €2.05.

MULTI award-winning PR agency Life Communications has rebranded to Freshwater.

Freshwater is a leading communications agency, with an 85-strong team and 10 offices across the UK and Ireland. The rebrand is the final stage of the two year integration of Life Communications – acquired by Freshwater in 2009 – into the Freshwater Group. Freshwater clients in Ireland include Gala Retail Services, Country Crest, Kingspan Renewables, easyFairs, and General Mills. Pictured are: Riki Neill, MD of Freshwater Ireland; Darlene McCormick; Development Director, Freshwater UK & Ireland; Steve Howell, Chief Executive, Freshwater; Joanne Huddleston, Senior Account Executive; and Ciara Schiefer, Account Executive, Freshwater Ireland.

STAFF from Irwin’s Bakery called into one of its chosen charity partners, Our Lady’s Children Hospital at Crumlin, as they walked to Cork from Belfast as part of their ‘Best Foot 4ward’ fundraising event. Around 300 Irwin’s employees participated in the challenge, which aims to raise £50,000 for four chosen charities – The Children’s Medical and Research Foundation of Our Lady’s Children’s Hospital, Crumlin; Macmillan Cancer Support; the Royal Belfast Hospital for Sick Children’s ‘Helping Hand’ MRI Scanner Appeal and New Beginnings Charitable Trust, a Northern Ireland based organisation which helps vulnerable children in Uganda. Pictured are Brendan Lappin, Business Development Manager, Irwin’s Bakery; Cara Stokes (6) patient at Our Lady’s Children’s Hospital, Crumlin; and Brian Irwin, Chairman, Irwin’s Bakery.

PICTURED at the NIVEA-hosted lunch in L’Ecrivain, Dublin, which was attended by key media and leading personalities as part of NIVEA’s landmark 100 year celebrations, are Brenda Thoms, NIVEA Marketing Manager, and John McKeown, NIVEA Managing Director.

THE first All-Ireland Craft Beerfest will take place from September 23-25 in the RDS, Dublin. The festival will feature more than 40 brews from Ireland’s finest craft breweries, along with select whiskey makers. “Our goal is to create a world-class gathering of breweries each year, where consumers may sample, experience, learn and be entertained” says Seamus O’Hara of Carlow Brewing Co., Festival Co-chair. Tickets are €10 and include a souvenir glass and a free half pint! Tickets are on sale now on www.ticketmaster.ie.

CPM, one of Ireland’s leading field sales and marketing companies, has scooped three prestigious awards at the inaugural Irish Sales Awards.

CPM were delighted to win in all the three categories in which they were nominated: Field Sales Champion 2011 (joint submission with Bord Gáis Energy) - Winner: David Breen; Champion Field Sales Manager 2011(Joint submission with Bord Gáis Energy) - Winner: Andrew Boyle; and Best Sales Support Technology (CPM submission) - introduction of PDAs in the field for CPM clients. The CPM team are pictured at the Awards presentation.

SUPERVALU’S own brand range came up trumps at the internationally renowned Great Taste Awards, organised by the Guild of Fine Food. 15 products from the SuperValu own brand range secured the prestigious international title, 10 of which are supplied locally in Ireland by Irish food suppliers, signifying an independent endorsement of the quality, taste and great range available from SuperValu own brand. Winners included SuperValu’s Supreme Orange Blossom Honey, produced by Healy’s Honey in Ballincollig, Co. Cork, which was awarded the highest accolade for taste and quality, receiving a 3 star rating. See www.SuperValu.ie or www.finefoodworld.co.uk for more information.

BULMERS brought free music to Waterford with The Bulmers Live Music Trail, which saw bands perform, free of charge, on the main live stages and in pubs all over Waterford City, during The Tall Ships Races 2011. O Emperor lined up alongside Bryan Ferry, The Waterboys and Sharon Shannon, with guests Damien Dempsey and Dessie O’Halloran, on the main live stages at The Tall Ships Races Waterford, with a host of live pub entertainment also on offer on the Bulmers Live Music Trail. “This is Bulmers’ third live music offering this summer and it is one of the key elements of our sponsorship of The Tall Ships Races Waterford 2011 – we are delighted the event has been such a huge success and that people came to Waterford in their hundreds of thousands,” noted Marcus Goodwin, Sponsorships Manager at Bulmers Ltd, who is pictured with Michael Merrins, MD, Bulmers.

Have you logged on yet? eading Tobacco Le ’s L d’s nd In 2010, Irelan Company launched a nationwide e youth access prevention programm ated aimed at providing one consolid solution to tobacco retailers in preventing the sale of tobacco to minors*. around a password Show Me I.D – Be Age Ok centres d.ie, which is the protected website, www.showmei practice on how ing source of advice, support and lead . Specifically, the site to avoid underage sales of tobacco to refuse a sale to a includes an interactive module on how tions while illustrating minor and defuse confrontational situa all . It also highlights the lega the importance of recording refusals . ucts cco related prod age for purchasing tobacco and toba ve, with other industries The programme will continue to evol g invited to utilise it. that sell age restricted products bein

iative is ’s T h i s i n i t d b y I r e l a n d ’s e t r tions o a p i p c su sso A e d a r T Retail

From February 2011, the ‘Show Me I.D - Be Age Ok’ poster began appearing on retail vending mach ines at point of sale in more than 1,2 00 retail outlets nationwide. This is a welcome follow on from the official lau nch last year.

PLEASE E NOTE:

Please visit

www.showmeid.ie

for all details relating to Show Me I.D – Be Age Ok**.

The website is password protected and you will be granted access within minutes of registering.

* Show Me I.D is a youth access prevention training programme for retailers and their staff.

Please keep associated materials out of sight of the general public. ** The information on the website and all associated materials is for general guidance only. It is not legal advice and should not be relied on as such.

Tobacco Focus From Ireland’s Leading Tobacco Company

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