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October 2009

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food you can trust and now food you can search.

Retail Sector Fights Back With all the talk of recession these days, you’d be forgiven for thinking we were staring into a black hole, with no chink of light to be seen. Yes, we know we’re in the middle of the worst economic downturn to hit Ireland in decades, and we’re furiously hoping that the worst is now over us. In these days, when it’s hard to pick up a newspaper or switch on the radio without hearing more bad news for the economy, it’s refreshing to hear something positive. This month’s Retail News includes a massive 36-page supplement dedicated to SuperValu and Centra, who this year celebrate 30 years of successful trading in Ireland. The two groups have become much more than mere supermarkets and convenience stores over the course of the last three decades, having led the way for Ireland’s thriving independent grocery sector, as well as becoming valued members of the communities in which they operate, right across the country. We pay tribute to the continued rise of both groups, looking at the ingredients that have helped SuperValu and Centra become the forces they are in Ireland’s grocery sector. They are not the only two retail groups with good news to report, however. Dunnes Stores recently re-opened their flagship store in Cork (Page 15), the ADM Londis Conference saw the group responding to the current economic climate and looking forward to the future (Page 16), including a massive deal with Nisa-Today’s, while the Barry Group reported a rise in profits over the course of 2008 (Page 32). As has been pointed out many times, Ireland’s consumers still need to shop, to cook and to eat. Offering the right product mix at the right price will ensure that your store survives, and possibly thrives, in the recession, emerging far stronger as a result. “Over 50 years serving the Irish Kathleen Belton, Editorial & Marketing Director

grocery trade.”

Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: Editor: John Walshe

Chief News Reporter: Pavel Barter

Wine Correspondent: Jean Smullen

Advertising Manager: Aaron Stewart


Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2. Tel: (01) 2413095. Fax: (01) 2413010. Web: Email: Subscription to Retail News: e110 plus VAT Email: Origination by: Rooney Media Graphics

Printed by: Graham & Heslip

Reproduction without written permission is strictly prohibited.

News • Product Search • Promotions • Customer Support The new Kerryfresh website has everything you would expect from one of Ireland’s leading foodservice providers. We think it's important for our customers to find what they need quickly and easily. That's why we've published a fully searchable online version of our product catalogue. You can search by category, product, part code or keyword. As our team will regularly update the website it will never go out of date.

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Bewley’s Brew Up Sponsorship with Newstalk

Pictured at the announcement that Bewley’s are the new sponsors of the coffee break on the Tom Dunne Show on Newstalk 106-108FM are Tom Dunne and Mark Saunders, General Manager - Retail and At-Home Division, Bewley’s.

BEWLEY’S are the new sponsors of the coffee break on the Tom Dunne Show on Newstalk 106-108FM, the station’s mid-morning magazine-style talk show.The Bewley’s Coffee Break takes place each weekday morning at 10.30am. “Bewley’s is delighted to brew up this innovative sponsorship with Newstalk,” noted Mark Saunders, General Manager, Retail and At-Home Division, Bewley’s. “The number of Irish consumers choosing to enjoy a mid-morning coffee break is continuing to grow significantly. “At 10.30am each weekday morning,Tom sits down with a cup of his favourite Bewley’s coffee and discusses whatever is on his mind that day. He may talk about Bewley’s coffee, he may talk about biscuits, he may even talk about something that’s bothering him. It’s a coffee break and that’s what people do on their coffee break.” 1

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Mail_Connect_Retail_Final.indd 1

14/10/2009 11:36:24


Contents October 2009

NEWS 4Retail Wage Debate Reaches Dáil Committee.

5New Advertising and Price Guidelines.

6Positive Future Predicted for Retailing.

Londis Conference 16The recent ADM Londis

Karen Meenan’s News Rack 21Ireland’s newspaper

Conference saw speakers addressing the future direction for the Londis group and for retailing in Ireland, as well as the presentation of the group’s annual Retailing Excellence Awards.

market is worth a massive €490m per year. It is one of the most stable categories in your store and a guaranteed profit driver, and yet many retailers fail to understand the sector.

SuperValu & Centra Celebrate 30 Years The SuperValu and Centra brands were launched by Musgrave in 1979, with initially 47

8 7Confusion Reigns Over Tobacco Compliance; Frank Coghlan Retiring from Musgrave Wholesale Partners.

8RGDATA Highlights Economic Importance of Locally Owned Shops.

9Legal Challenge to Tobacco Display Ban; Motorway Service Areas Given Green Light.

former VG and Shoprite stores signing up to the new formats. Today, there are 193 SuperValu supermarkets and 474 Centra stores throughout Ireland. In a special supplement, we examine the various elements that go into making these retail brands so successful, from marketing to IT, logistics to branding.

Shop Profile 26Sarah and Tony Butler’s redeveloped MACE forecourt in Clonard, Co. Wexford, is already reaping dividends for two of the newest retailers to join the MACE group.

On The Vine 31Wines of Chile Revamp Website; Ampersand to Distribute Delicato; Coman’s Launch Premium Chilean Range; NOffLA Gold Star Awards.


Costcutter Conference 32At their annual Conference, The Barry Group have reported an increase of sales to €212.5m, while overall group profit before tax rose to €2.67m. Meanwhile, the Group announced plans for more Buy Lo stores before the end of the year.

Shelf Life 40All the latest news and gossip from the trade.

Regulars 10 Industry News 20 Drinks News 39 What’s New Sectoral Reports 28 OTC Medicines/Vitamins 34 Soups 3


Retail Wage Debate Reaches Dáil UNFAIR mandatory wage structures are threatening the retail sector, the Convenience Stores and Newsagents Association (CSNA) have told a Dáil Committee. Vincent Jennings, CSNA Chief Executive, told the Oireachtas Joint Committee on Enterprise, Trade and Employment, that Joint Labour Committee (JLC) wage rates are untenable and a direct cause of store closures. Trade union Mandate responded by requesting their own audience with the Dáil. According to the CSNA, current JLC rates are between 15% and 19% higher than the traditional national minimum wage and staff are paid between €390 and €402 a week. Staff on minimum wage, which currently stands at €8.65 an hour, receive upwards of €337. Although the difference may be only €50 a week, it has a significant impact on a retailer’s bottom line, Jennings told Retail News. “The more you look at the figures, the more you realise there as an extraordinarily high wage structure,” he noted. “The smaller the operation, the more wages are as a percentage of overhead. For the average urban convenience store, you’re looking at 56% of the total overhead given to wages. For the CTN (Convenience, Tobacco and News retailers), it may be as high as 63%. That is a very substantial chunk of overhead. “Our members will be lobbying TDs at local level to make them aware of the

Vincent Jennings, CEO, CSNA. 4

importance of maintaining jobs in the community. We can not, as a sector, afford to continue paying JLC rates. I think it’s really unfair that our sector, as opposed to other retail sectors, have to pay this. A jeweller or a florist or a bookseller is free to pay minimum wage. It’s an anachronism.” Jennings added that JLC rates should have ceased when the national minimum wage was established in 2000. As part of the CSNA’s presentation to the Dáil, SPAR franchisee David Bagnall said that further JLC rises will lead to job losses. However, Mandate have hit back, saying that future wage increases, under JLC, have already been deferred. Gerry Light, Assistant General Secretary for the union, told Retail News that labour is only one of a myriad of problems facing retail businesses at present and it should not be singled out. “The current wage rates, across the unionised sector and other sectors, are very low,” he said. “Of course, there are emotional arguments being made at the moment. They say people are lucky to have a job at all and if the unions pursue their ambitions to maintain these rates of pay, we’re the ones putting jobs at risk. That’s absurd nonsense. It’s unjustifiably raising the stakes in regard to a relatively low pay cheque in a part-time sector that has huge degrees of flexibility.” Light said it was unjust to call some of the lowest paid members of Irish society overpaid. “This is a disingenuous approach, where you start at the bottom

and try and pretend those people are the ones who are in some way privileged,” he said. “We have to ensure we have some sort of moral fabric in our society when we come out of this recession. You’d be a fool to ignore the challenges [retailers] are facing, but any employer who seeks to use the current downturn in an opportunistic fashion, has to be exposed for what they are. Anyone who suggests that people who are on minimum wage, or barely above the statutory minimum rates, are in some way preventing recovery, are taking a very short term view of the situation. It can’t be classed as anything other than opportunistic.” Jennings adamantly disagreed with this opinion. “There’s nothing opportunistic about it,” he said. “People are looking at every possible way of staying in business, of keeping people in employment. It is unfortunate that the increase on people’s wages have cost jobs. We’re trying to protect the average retailer, and his staff, from going under. The worker who is receiving the JLC rate is not underpaid, I would suggest, in the current climate.” For their part, Mandate suggest employers should approach them, creating a shared approach at reaching a solution. “The implication is that the workforce is part of the problem, rather than the solution,” said Light. “In relevant terms, [retail] employees have been at the bottom of the pecking order for a long time, well before this recession and during the boom years. Their economic status wasn’t massively increased. If wages are cut further,


Committee New Advertising and you will get resentment, you will get anger, and you will get an appropriate response.” Jennings is not so sure. The majority of CSNA members and their staff, he said, do not have union representation, by their own choice, even though they have a constitutional right to it. He added that retailers know their employees far better than unions. In the course of submissions to the JLC, earlier this year, representations made reference to the fact that staff would be happier foregoing a pay increase than losing jobs. That did not filter through to the unions, said Jennings, because there was no union representative in place. “The extraordinarily thing about this, is they are employee representatives without a mandate,” he concluded. “No pun intended.” The CSNA address to the Joint Committee on Enterprise, Trade and Employment encompassed far more than the issue of JLC rates, however, and covered issues relating to the entire grocery spectrum. Responding to a number of Vincent Jennings’ points, the Committee wrote to the CSNA Chief Executive, and agreed to recommend to the Minister for Enterprise, Trade and Employment and the Finance Minister that action needs to be taken to ensure that banks provide adequate financial support to viable businesses in the form of overdrafts, reduced charges and lending. Furthermore, the Committee agreed to recommend to the Minister for Finance and the public sector that energy efficient equipment should be included in the Advanced Capital Allowance in the next Finance Bill. The Committee also agreed to forward certain of the CSNA’s proposals to the Minister for Enterprise, Trade and Employment, including the issue of upward-only rent clauses, the potential appointment of an Ombudsman to investigate unfair practices in the retail sector and the CSNA’s recommendation that if the Government introduce a Code of Practice (Voluntary or Statutory) between retailers and suppliers to the grocery sector, that the Government and all state bodies should be answerable to that Code.

Price Guidelines NEW guidelines on advertising and price promotions for the retail sector are intended to iron out misleading practices in the sector. Published by the National Consumer Agency (NCA), the guidelines cover an array of promotional areas, including: recommended retail price (RRP); ‘Buy One, Get One Free’ promotions; special lines; comparative advertising by reference to other retailers; free offers; closing down and relocation sales; marketing of old stock and discontinued lines; bait advertising; print size, and much more. “The guidelines are intended to ensure that consumers are dealt with fairly by traders and those advertisements and promotions are not misleading,” said John Shine, the NCA’s Director of Commercial Practices. He highlighted the importance of the retail sector buying into these guidelines “to ensure that they fully meet their obligations to consumers”. The guidelines are intended to facilitate the retail sector in complying with the requirements of the Consumer Protection Act 2007 in relation to a variety of misleading practices. According to the NCA, they will help retailers to better appreciate their obligations to provide unambiguous information to consumers, give clarity on certain aspects of the Act and provide a basis for a fairer and more evenly balanced

approach towards advertising throughout the sector. While the guidelines are not legally binding, they have, nevertheless, a recognised status under the Act, as they may be admitted as evidence in court proceedings. The guidelines are available online at Zone/Consumer_Protection_Act_and_ the_Retail_Sector/

John Shine, Director of Commercial Practices, NCA.

Bord Bia Fellowship THE Minister for Agriculture, Fisheries and Food, Brendan Smith TD recently met the 25 graduates selected and recruited for the Bord Bia Marketing Fellowship Programme. The programme aims to increase Ireland’s food exports, valued at €8.2 billion in 2008, and broaden the industry’s export reach. The Fellows will undertake in excess of 160 commercial assignments, across 12 overseas markets, including the UK, continental Europe, Russia, Asia and the United States, on behalf of 113 Irish food and drink companies. Pictured with the graduates are Aidan Cotter, Chief Executive, Bord Bia; Minister Brendan Smith; and Tom Begley, Dean, UCD Michael Smurfit Graduate Business School. 5


Positive Future Predicted for Retailing A RECENT event, involving MDs across all Irish retail sectors, revealed a largely positive outlook about the future of retail. According to PricewaterhouseCoopers (PwC), who held a poll at the event, 57% of retailers are either neutral or positive about the stability of the sector. A further 54% said they were planning store expansions and 15% were seeking a merger or acquisition opportunity in the coming year. Meanwhile, 77% of retailers are planning to realign product ranges, 69% will make non-staff cost reductions, and 62% plan promotional and price discount campaigns.

David McGee, Director, PwC Retail and Consumer Practice.

“The discussion focused on how it has been an appalling 12 months,” David McGee, Director of PwC’s Retail and Consumer Practice, told Retail News. “They have all suffered badly: they have to take pay cuts at the top line, lay people off, introduce cost cutting measures, and they have all found it extremely difficult and painful. But as the numbers were coming through, we were saying ‘This looks more positive than we thought’. It is optimism off a very low basis: ‘I feel next year is going to be better than last year because last year was terrible’. The retailers did, however, feel costs are 6

starting to come down, albeit not fast enough. There is recognition that the cost of labour is starting to come in line a bit, in terms of competitiveness.” Despite this optimism, the retail sector remains beleaguered. Retail Ireland, IBEC’s Pictured launching PwC’s first retail survey are (l-r): Ken Scully, representative Finance Director, Marks & Spencer; Jean Delaney, Leader, PwC Retail and Consumer Practice; and PJ Timmins, President, group for the Dublin Chamber of Commerce and CEO, Clerys. sector, have said they anticiGalway from 13.65% to 14.33%. In pate a further 12,000 job losses before Limerick, over a quarter of all retail the year end. In mid-2008 to mid-2009, space is unoccupied. 29,000 people who worked in retailRetail Excellence Ireland’s (REI) ing joined the Live Register, according latest Rent Reduction Survey revealed to figures from the Central Statistics that only 13% of landlords have offered Office (CSO). retail rent reductions in 2009, despite Surely this puts a dampener on any requests for rent respite from nearly positive outlook? “I don’t think you are 90% of Irish retailers. According to going to see a pick-up in terms of people REI, Minister for Justice, Dermot being re-employed again,” said McGee. Ahern TD may now be proceeding with “But people are starting to feel comlegislation to outlaw upwards-only rent fortable. There was a consensus view review clauses. in the room, in terms of a survey groupNevertheless, retailers believe that ing, that ‘There may be more pain to action can be taken to strengthen the come, but I’ve taken mine’. In all their industry. At the PwC event, 45% of specific sectors, they felt there may be retailers said they were responding to competitors who may be in more trouchanging consumer demands, while ble than they are: ‘I’m feeling strong 45% were realigning their cost base. and in a good position’.” Banks, however, still need to get their It was not all roses, however. 86% of act together. retailers believe the cost of doing busi“In the qualitative feedback, there ness in Ireland is too high. There was was a huge amount of anger over banks also discussion about landlords’ immoand lack of availability of credit,” said bility in regard to rent. High rent is McGee. “That issue raised a phenompurported to be behind the large vacanenal amount of ire. The message they cy rates across the country. According are sending out is, ‘We need the banks to new figures from Experian, a global to provide funding again - both working information services company, Dublin capital funding and longer-term develhas a retail vacancy rate of 20.67%, 6% opment funding. We need to continue higher than the Irish average of 14.1%. addressing costs in every which way Cork’s empty outlets are expected to we can’.” increase from 17.37% to 18.54% and


Confusion Reigns Over Tobacco Compliance INCONSISTENCIES in Environmental Health Officer (EHO) checks on retailers, regarding compliance with new tobacco legislation, are causing confusion, according to the Convenience Stores & Newsagents Association (CSNA). Under new legislation, all retailers must secure tobacco products in sealed containers, removing advertising or public displays. However, some EHOs appear to be confused about what is required under the law, Vincent Jennings, CSNA Chief Executive, told Retail News. “We asked the Department of Health to ensure the protocols of the checklist were understood by the EHOs so there would be a uniformity and consistency within the country,” he said. “Unfortunately, I’ve had to take a number of EHOs to task for exceeding their brief or being incorrect in their analysis of the requirements. This wouldn’t have occurred had there been uniformity.” For example, one EHO appears to have thought “sealed container” meant “concealed container”. The EHO in question brought a retailer to task for having a cigarette cabinet visible in his outlet, stating it should be under the counter or out of sight. The CSNA subsequently

contacted the Officer, on behalf of the retailer, affirming it is the tobacco products, not the container that must be out of sight. “There are other EHOs who tell people they can’t stock their shelves during opening hours, which is totally at odds with the instructions they should have been given as part of their training,” said Jennings. “The EHOs need agreed uniform training, so regardless of whether they are in Navan, Dublin, or Mayo, it is the same message. It is, after all, the same national legislation throughout.” Under the new legislation, all tobacco retailers (including vintners and offlicensees) were obliged to register with the Office of Tobacco Control (OTC) in order to continue selling tobacco legally, by October 1. “Licensing of tobacco products in this manner demonstrates clearly that selling tobacco is a privilege, not a right,” said Éamonn Rossi, OTC Chief Executive. “A retailer who is registered with the OTC and who is convicted of an offence under the Public Health (Tobacco) Acts will be removed from the register for up to three months, in addition to any fines imposed by the courts. Removal from the register

means that tobacco products cannot be sold from the premises during the period specified by the court.” According to Jennings, EHOs are comfortable with the level of compliance, following their tobacco control inspections. “They have been quite enlightened in that regard,” he added, “pointing out problems that can be corrected, rather than issuing summons.” Retailers not yet registered can do so online at or by requesting an application form via the OTC compliance line at 1890 333 100.

Frank Coghlan Retiring from Musgrave Wholesale Partners FRANK Coghlan will retire from his position as Managing Director of Musgrave Wholesale Partners on April 30, 2010, following 18 years service with the company. Coghlan will be succeeded in his role by Martin Kelleher, who has been appointed Managing Director designate with effect from October 12, 2009. Frank Coghlan first joined the business in 1991 as Group Human Resources Director and subsequently went on to lead the wholesale division, developing that business into its current three business units of Cash and Carry, Delivered Retail and Delivered Foodservice. He has also been a member of the main board of Musgrave since joining the business and has contributed greatly to the overall growth and development of the Musgrave Group. Martin Kelleher joined Musgrave in 1996 and since then has served in a

number of senior roles, including periods as Sales Director for both the Centra

Frank Coghlan, retiring Managing Director of Musgrave Wholesale Partners.

and SuperValu brands. More recently, Kelleher was appointed Managing Director of J&J Haslett, following that company’s acquisition by Musgrave in September 2007. In this role, Martin Kelleher successfully led the integration of J&J Haslett into Musgrave’s existing trading divisions in Northern Ireland. “I would like to thank Frank for his significant contribution to Musgrave over the last 18 years and wish him a long and happy retirement,” noted Chris Martin, Group Chief Executive, Musgrave Group. “I would also like to take this opportunity to congratulate Martin on his appointment and wish him every success in his new role. Frank and Martin will work together over the coming months to ensure a successful transition of the leadership of Musgrave Wholesale Partners and the continued development of its brands.” 7


RGDATA Highlights Economic Importance of Locally Owned Shops LOCAL family-owned stores are “the backbone of our economy”, according to RGDATA Director General, Tara Buckley. The grocers’ organization highlighted the significant economic and social contribution of local family owned shops at the recent RGDATA Roadshow in Dublin. Economist Jim Power, who is carrying out research on behalf of RGDATA, provided some of the top line information from a report he is preparing on the True Value of Local Shops. Ireland’s 6,000 locally owned independent shops, convenience stores, forecourt stores and supermarkets provided 95,000 jobs, paid €358m in taxes, PRSI and levies, paid wages of over €2 billion, commercial rates of €57m and €36m in local authority charges, according to Power’s figures. In addition, advertising and sponsorship spend by the sector amounted to €150m. “Local family owned shops are the glue that holds local communities together,” said RGDATA Director General Tara Buckley. “They are significant contributors to their local economy and to the national economy. RGDATA is highlighting how our members go that extra mile in their local communities. These are the businesses that are the backbone of our economy. These are the businesses that Government needs to support, not stifle with over regulation and high costs of doing business.” RGDATA members operate about 4,000 of these local family owned stores and the contribution that they make to their communities and to the economy is significant, said Buckley. RGDATA is launching a campaign to highlight the value of local shops to Irish communities and to the Irish economy. “The RGDATA campaign features the Nolan family in Clontarf, three generations and 50 years of family grocers,” Tara Buckley explained. Also featured is Ciaran Cotter, a community shopkeeper from Baltimore West Cork who is also captain of the Baltimore Lifeboat, “serving his customers at 9am, saving lives at 9pm”. 8

Pictured at the RGDATA Roadshow are Tara Buckley, Director General, RGDATA; Colin Gordon, Chief Executive, Glanbia; and Jim Power, economist.

“It features Annie Timothy who runs a shop with her husband Vincent in Abbeytown, Co. Roscommon, and is Bainisteoir of the Girls Under 11s and Under 12s at her local GAA club,” Buckley continued. “It also features Mullingar supermarket owner Jim Marshall, who has been supporting Irish producers and suppliers for over 50 years. Another member, Peter Ward is well known as an award-winning shopkeeper and a passionate artisan food promoter.” “RGDATA members are local entrepreneurs going about their business who actually care about their community and are prepared to give something back,” Tara Buckley concluded. Looking at the wider implications for the economy, Jim Power, who is Chairman of the recently launched ‘Love Irish Food’ initiative, argued that “it’s time to start looking at what are sustainable businesses,” highlighting Ireland’s retailers as prime examples. “They need to be appreciated and they need to be nurtured,” he stated. “As retailers out there, you know what

the pressures are on the consumer side, rising unemployment, increased taxes, uncertainty about the future of taxation. We’ve seen individual destruction, falling house prices, falling equity markets and pensions. All of those things have placed a terrible burden on disposable incomes. More than anything, this is the challenge facing the retail trade, a consumer whose disposable income is under severe pressure.” Power argued that Ireland has to concentrate on sustainable indigenous businesses. “We need to focus on supporting local industry and supporting local tax revenues. We need to start to focus on the relationship between local businesses and the community and the economy It is in that context that the ‘Love Irish Food’ campaign is so important,” he argued. “It’s there to inform the consumer about what constitutes Irish food, that when you buy Irish you are making a contribution to Irish business, to the Irish economy.” RGDATA will publish the full report on the True Value of Local Shops in early November.


Legal Challenge to Tobacco Display Ban TOBACCO giant Philip Morris Ltd (PML), alongside Donegal retailer Maurice Timony, are mounting a legal challenge to the country’s ban on advertising or displaying tobacco products in retail stores across Ireland. They tobacco manufacturer and the independent retailer have filed a joint lawsuit seeking to overturn the ban on display of tobacco products at retail level on the grounds that it severely restricts their ability to provide trade and services, thus violating Irish Constitutional law and EU law. “We know from our experience in Iceland that a total ban on tobacco display does not work, is costly to implement and ineffective at reducing smoking levels,” said Anne Edwards, spokesperson for PML. “We support strict tobacco regulation, but this legislation just serves to hand the tobacco business over to smugglers and counterfeiters. Ireland already has one of the worst illegal cigarette problems in the EU and this ban is making it worse. No one likes to litigate, but we have unfortunately arrived at a point where we see no alternative. By taking this action, we ask the Irish government, ‘What type of industry do you want? One that is legitimate, and supports effective regulation, or one that is run by criminal gangs selling cheap, illegal cigarettes on street corners?’” “I am a licenced retailer who pays a licence fee to the government

to sell tobacco products,” stated Maurice Timony, owner of Timony News in Donegal. “Currently, the country is swamped in legislation that is making life very difficult for compliant retailers like me. The ban on display of cigarettes is just one example of a piece of over-regulation that has not been well thought through and has negatively affected my business. As a compliant, law-abiding retailer, I have a responsibility to my employees to make sure that I can continue to employ them going forward. Simply put, ‘enough is enough.’ The display ban threatens my business and I have therefore decided to take a stand against it.” Meanwhile, the Irish Tobacco Manufacturers’ Advisory Committee (ITMAC) has congratulated customs officers in Cork Airport and Dublin Port following two seizures of cigarettes and tobacco with a street value of €4.42m. The total quantity seized was 11.5m cigarettes with a potential loss to the exchequer of €3.66m.

“Illegal sellers operating within markets and on streets across the country are cheating people into buying counterfeit cigarettes,” noted at ITMAC spokesperson. “It is important we arm people with the information that the fakes can look just like the real thing and often even have an Irish health warning and forged tax stamp to be even more convincing. We advise anyone concerned to only purchase within the legitimate retail trade.” Seizures of cigarettes by Customs officers for the period January to August 2009 amount to 60,691,264, with a retail value of €25.6m. The latest seizure brings the total seized to date by Revenue to approximately 75m cigarettes with a retail value of approximately €30.5m.

Motorway Service Areas Given Green Light THE SuperStop Consortium has been awarded the Public Private Partnership contract to design, build, finance, maintain and operate the three Motorway Service Areas by the National Roads Authority. The consortium, which is 100% Irish owned, comprises Applegreen (retail operator); TOP Oil (fuel operator) and Pierse Contracting (design and construction). It is estimated that 500 jobs will be created during the construction phase, and that around 250 full and part time jobs will be created when the three new service areas open. The 24-hour service areas will be located on the M1 at Castlebellingham, Co. Louth, and Lusk, Co Dublin, and on the M4 at Enfield, Co. Kildare. Each of the three service areas will incorporate separate fuelling areas for cars and HGVs, a restaurant and deli, a shop, customer services, significant parking facilities, child play areas and picnic areas.

Kraft Bid for Cadbury US food giant Kraft have revealed news of an €11.5bn bid for Cadbury. Although the bid was rejected, the news has restored hopes of an economic recovery, as Cadbury shares are performing extremely well. 9



Londis Secures Exclusive Wholesale Agreement ADM Londis plc has reached agreement with the UK wholesaler Nisa–Today’s to source a range of well known international branded products and a private label range, which will place Londis retailers in a more competitive position in the grocery sector. Under the agreement, ADM Londis has secured the future wholesaling rights in the Republic of Ireland for Nisa’s Heritage and Value private label brands. Nisa–Today’s existing membership base in the ROI will remain unaffected by this agreement. The range of products will comprise everyday grocery categories such as fruit juices, canned food, sauces, cooking oils, health & beauty and many more. It is estimated that this wholesaling agreement will represent approximately 10% or €25m of the Group’s overall food, non-food and beverages purchases when fully implemented, with the prospect of additional growth as the partnership develops. “Ultimately this deal will result in more competitive pricing in Londis stores for consumers,” said Peter Foley, Commercial Director, ADM Londis plc (pictured). “This exclusive agreement places Londis retailers in a significantly enhanced competitive position within the market, with access to very competitively sourced international branded and private label products.”

Emly Named Ireland’s Tidiest Town EMLY, Co. Tipperary, has been awarded the title of Ireland’s Tidiest Town 2009. This is the first time that the South Tipperary village has secured the title, although they have been consistently strong contenders in recent years and have won many county and medal awards. Pictured holding the award is Emly Tidy Towns committee chairperson Sharon Cunningham, with John Gormley TD, Minister for the Environment, Heritage and Local Government (far right) and Donal Horgan, Managing Director of SuperValu, the competition’s national sponsor (far left). Emly was chosen from 720 competitors in this year’s National TidyTowns Competition. Other winners included Aughrim, Co. Wicklow, which received the award of Ireland’s Tidiest Small Town; Westport, Co. Mayo, which received the Ireland’s Tidiest Large Town Award; and Ennis, Co. Clare, was named Ireland’s Tidiest Large Urban Centre.

SPAR Launches €1m Ad Campaign SPAR Ireland has engaged the services of Oliver Callan, aka ‘Louis and Bertie’, in a new €1m television and radio campaign to help launch a new schedule of Euro Crunch offers, which started with an initial Back to School promotion. The Back to School offers include everyday lunch box items on sale for just €1 in SPAR stores nationwide. The latest television ad from SPAR utilises cutting edge 3D animation and stars caricatures of Westlife manager, Louis Walsh, and former Taoiseach, Bertie Ahern. On-screen the ‘school mates’ engage in typical schoolroom rivalry over who’s done their ‘homework’ about SPAR’s back-to-school Euro Crunch offers. “The Euro Crunch campaign has been a huge success for our retailers and a big hit with our customers,” noted Suzanne Weldon, Marketing and Communications Director at SPAR Ireland. “Our aim is to offer shoppers a rotating selection of products at special Euro Crunch prices and this next phase of the campaign has been targeted to coincide with the back to school period.” 10

Bord Bia Launches TV Campaign

BORD Bia have launched an information campaign to increase consumer understanding of the Bord Bia Quality Mark, outlining the range of products that carry the Mark and what the Quality Mark means in terms of quality assurance standards. Pictured at the launch are (l-r): Tim Cullinan, Chairman of the IFA Pigs and Pigmeat Committee; Teresa Brophy, Ireland Market Manager, Bord Bia; and Ray Carolan, Chairman of Bord Bia Meat and Livestock Board. Earlier in 2009, a nationally representative survey indicated that while 85% of Irish shoppers are aware of the Quality Mark, there is a need to increase understanding of what the Mark actually means (Source: Millward Brown IMS, 2009).



Superquinn Celebrates Irish Food SUPERQUINN is celebrating everything that’s great about Irish food this autumn, with the Superquinn Irish Festival, designed to showcase the very best of Irish food from local producers and suppliers throughout its 23 stores. Superquinn has been supporting local producers for almost 50 years, with over 80% of its fresh foods sourced locally, helping to support and sustain thousands of Irish jobs. Shoppers were invited to visit Superquinn stores to sample foods, meet and talk to Irish suppliers, and benefit from great special offers on over 400 Irish food and grocery items. During the festival, over 150 Irish food companies, including Mash Direct, Traditional Cheese, Glenisk, Clonakilty Food Company, and Shellfish De La Mer, sampled foods in-store. Pictured announcing the Superquinn Irish Festival are John Dockrell, iceberg lettuce grower from Donabate, Co. Dublin; Fergal Butterly, tomato grower from Rush, Co. Dublin; John Keogh, cabbage and sprouts grower from Ashbourne, Co. Meath; and Vincent Thorne, cucumber grower from Rush, Co. Dublin.

SuperValu to Sell €2.2m of Irish Apples SUPERVALU have announced projected sales of €2.2m of Irish apples in 2009, with the first of this crop now available in all stores across the country. SuperValu’s commitment to Irish based growers and producers resulted in combined Irish retail sales of €1bn of fresh Irish food in 2008. This commitment to investing in local produce guarantees top quality, fresh Irish fruit and vegetables for consumers. “SuperValu has a long established policy of investing in local Irish produce whenever possible, thus providing the Irish consumer with top quality Irish fresh fruit and vegetables and we are delighted to welcome this season’s Irish apples in store,” noted Donal Horgan, Managing Director, SuperValu. Pictured are (l-r): Aoife Coogan, Brandon Noble (5) and Yasmin O’Neill (4).

Glanbia Sign €70m Deal with Yoplait Group GLANBIA Consumer Foods have signed a new franchise agreement for the Yoplait brand in Ireland with Sodima, the owners of the Yoplait yogurt brand internationally. The new franchisee agreement lasts 15 years and is a continuation of the existing 35-year relationship between both companies. Yoplait sales are worth €70m per annum at retail level in Ireland and it is the biggest selling food brand in Glanbia Consumer Food’s portfolio. “Yoplait is one of Ireland’s best known brands and its continued appeal is reflected by the fact that a pot of Yoplait fruit yoghurt is eaten every second in Ireland. We have worked very successfully with Sodima since 1974 and we are confident that Yoplait will continue to be the number one choice among families for fresh dairy products,” commented Colin Gordon, CEO Glanbia Consumer Foods, who is pictured with John Moloney, Group Managing Director, and Lucien Fa, Managing Director, Yoplait Group.

Lidl Has a Big Heart! LIDL Ireland GmbH is joining forces with Ireland’s only dedicated heart health charity, the Irish Heart Foundation, to spread the message about heart health and educate people about the benefits of leading a healthy and active lifestyle. Lidl Ireland plans to back the efforts of the national heart health charity by raising vital funds so it can continue its excellent work. The first step in the partnership was a weeklong fruit and veg promotion, which coincided with Irish Heart Week. Lidl donated 10% of fruit and vegetable purchases of €10 or more to the Irish Heart Foundation during this period. It is hoped this promotion will encourage greater consumption and help people to meet the recommended 5-a-day that leads to healthier lifestyle and reduces the chance of heart disease. This initiative is part of Lidl’s ongoing Corporate Social Responsibility programme “On the Way to a Better Tomorrow”, whereby Lidl is committed to building a healthier and brighter future for consumers in the Republic of Ireland.

Kellogg’s Get Active with RTÉ 2fm KELLOGG’S and RTÉ 2fm staged their very own Mini Olympics at RTÉ studios during The Rick O’Shea Show to celebrate a hugely successful Let’s Get Active campaign to get the nation active, where they broadcast live from community events around the country. Pictured before their giant sumo wrestling match are Gary Jackson, Kellogg’s, and RTE 2fm’s Aidan Leonard. 11



Topaz/UNICEF Christmas Card Competition GETTING into the spirit of things at the launch of the UNICEF/Topaz ‘Create a Card – Make a Difference’ art competition is RTE children’s presenter Emma O’Driscoll with Félin Neiland (4) and her sister Aryana (7). The competition is open to primary students all over the country who are being asked to design their very own Christmas card. A selection of cards from four different age categories will be turned into a gift set and sold at Topaz stations nationwide to raise money for UNICEF programmes all over the world. Full details available at or

Ballymaloe Thanks Customers

Bulmers Has the Last Laugh

BALLYMALOE Country Relish recently hosted a ‘Thank you For Buying Irish’ party at their premises in Courtstown Park, Little Island, County Cork, to thank those who spend some of their income on purchasing Irish food products. Ballymaloe Country Relish, who will be 20 years in business next year, hosted the event in light of Ireland’s massive economic difficulties to promote recognition of the employment benefits, both direct and indirect, our food industry can provide. “Purchasing Irish goods will create jobs at home and be more financially beneficial in the long run,” says Yasmin Hyde, founder of Ballymaloe Country Relish, who are members of the newly formed ‘Love Irish Food’ organisation. Pictured are three generations of the Ballymaloe Country Relish family: Maxine Hyde, Myrtle Allen and Jasmine Hyde.

PICTURED at the Bulmers International Comedy Festival were Bulmers Brand Manager, Marcus Goodwin, the hilarious Michael McIntyre and Emma English. Now in its sixth year, the Bulmers International Comedy Festival has become one of the top five comedy festivals in the world. This year’s festival took place in various venues across Dublin for three weeks from September 6, and included comedy sensation of 2009 Michael McIntyre’s debut Irish performance, along with Rich Hall and Otis Lee Crenshaw, Jimmy Carr, Stephen Lynch, Janeane Garofalo and Al Madrigal.

Oxfam Upwraps Christmas Catalogue THIS Christmas, you can give a truly spectacular gift with Oxfam Ireland, by choosing your presents from its exciting new Christmas catalogue, ‘Unwrapped’. Choose an ‘Unwrapped’ gift like a cow or school books and not only are you buying a great gift, you are giving someone living in poverty in the developing world the chance of a better life. When choosing a gift from Oxfam ‘Unwrapped’, the purchaser receives a gift card, which they can send to friends or family. The gift itself goes to a family or a community in the countries that Oxfam works in and who need it most, so when you choose an Oxfam ‘Unwrapped’ gift, everybody wins! ‘Unwrapped’ gifts can be purchased online, in your local Oxfam shop, by post and by phone (1850 30 40 55). See www. for more information. 12

Sqeez Works with Make-AWish SQEEZ is working with The Make-AWish Foundation of Ireland. The Sqeez brand will contribute to granting wishes for special children living with life-threatening illnesses and will proudly promote it on-packs, currently available in-store nationwide. Pictured are Susan O’Dwyer from Make-AWish Ireland and Michelle Corbett from Batchelors at the launch of the new packs.




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Sweet Music for Dairy Milk CADBURY Dairy Milk has created its first ever single, inspired by Ghanaian music and celebrating Cadbury Dairy Milk becoming Fairtrade certified. Ghana is the heart of Cadbury Dairy Milk’s Fairtrade cocoa, so Cadbury decided to film the latest Glass and a Half Full Production there and work with Ghanaian musicians to create a magical follow up to ‘Gorilla’, ‘Trucks’ and ‘Eyebrows’. Glass and a Half Full Records has collaborated with Ghana’s hottest music superstar, Tinny, to produce a track and music video called ‘Zingolo’. The track and video were all inspired by Ghanaian culture and their love for music, and profits from the sale of the single will go to the charity CARE International to fund education programmes in cocoa growing communities in Ghana.

New Whiskey Distillery for Dingle IRELAND’S newest distillery, The Dingle Whiskey Distillery has been launched by serial entrepreneur and founder of the well-known PorterHouse bars and brewery and Lillie’s Bordello, Oliver Hughes, and local Kerry businessman Jerry O’Sullivan. The project is being assisted by Udaras na Gaeltachta and is the first distillery to open on the island of Ireland in 200 years. The distillery will take 18 months to construct and when complete, will provide 18 jobs. Pictured at the announcement of details for The Dingle Whiskey Distillery are businessman Jerry O’Sullivan and entrepreneur Oliver Hughes at Dick Mack’s pub in Dingle.

SuperValu to Sell 100,000 Báirn Braics IRISH Halloween treats have gone on sale in all SuperValu stores across the country, with the public expected to return to traditional products such as Báirn Braic and Kale this year. SuperValu expects to sell 100,000 Báirn Braics, all baked by Irish suppliers, by October 31, and Kale sales are expected to jump 20%.

Repak Recycling Week

Write Up Londis’ Street

IRISH Garden Designer Peter Donegan helped launch this year’s Repak Recycling Week with a window display in Dunnes Stores on Georges Street, Dublin. The week-long awareness campaign, which ran from October 12-18, features a series of initiatives to get the Irish public recycling better than ever. The window display, titled ‘Green House Effect’ showed how recycling can impact on the environment and featured a full size glass house with polystyrene flowers and trees, along with packaging elements that are traditionally not fully recycled. Pippa O’Connor and Peter Donegan are pictured helping to launch Repak Recycling Week.

30 young authors chosen from over 3,000 entries across Ireland are having their stories published in aid of Barnardos Children’s Charity, courtesy of ADM Londis. Following a nationwide competition in April of this year, 30 young authors aged between 5 and 18 years have had their stories published in ‘Write Up My Street’, a powerful and inspiring collection of short stories based around community life in Ireland today. Londis received over 3,000 entries from young people all over Ireland who wrote short stories based around the theme “There’s no Community like My Community”.




Original Dunnes Stores Re-opens in Cork

Margaret Heffernan, Director, Dunnes Stores, pictured at the store opening.

Dan Barrett, a Director of Dunnes Stores and one of the first employees of the company.


historic store refurbishment was unveiled on Patrick’s Street in Cork recently as the remodelled Dunnes Stores opened its doors to the public. The store, opened by Ben Dunne in 1944, was the first ever Dunnes Stores outlet and will provide employment for more than 200 people. The store features 100,000 square feet of retail space, with a 22,000 square feet food hall situated at basement level and a further 78,000 square feet over three floors dedicated to fashion, homewares, and a café. The redevelopment has taken over two years to complete. Highlighting the role that the store has played in the development of the famous retail brand, much of the original facade of the building has been maintained and restored and the original paint work and design from 1944 have been reinstated. Dan Barrett, a Director of Dunnes Stores and one of the first employees of Dunnes Stores, said that he was delighted to see the first store open its doors again: “This store is where the Dunnes Stores empire originated and we’re delighted to see it take its place as one of Ireland’s most advanced and modern shopping outlets. The store combines a unique mixture of the modern and the historic, so customers will be able to see how far Dunnes Stores has grown since 1944, and how we continue to make ‘better value’ the focus of everything we do.” Store Managers, Declan Flanagan and Keith Healy, said that the Patrick’s St outlet is a flagship store for Dunnes Stores. As part of the reopening of the new store, Dunnes Stores organised a ‘Swipe and Win’ competition where shoppers at the new store had the chance to win one of two cars being given away over opening weekend, along with holidays, TVs and home entertainment systems.




Addressing the Future The recent ADM Londis Conference saw speakers addressing the future direction for the Londis group and for retailing in Ireland.


annual Londis Conference and Retailing Excellence Awards recently took place in the wonderful surroundings of the Heritage Hotel, Killenard. Once again, the Londis team assembled an excellent mix of speakers, covering a diverse range of topics. First up was leading Irish economist, journalist, broadcaster and author, David McWilliams, who delivered a hugely entertaining and thought provoking speech focusing on what had become of the ‘Breakfast Roll Man’ and his legacy. He criticised the introduction of NAMA and warned of the economic burden likely to befall future Irish generations. In his estimation, house prices would need to fall a further 30-40% before they reached true market values. In finishing up his presentation, McWilliams talked about opportunities for Irish retailers and the need for differentiation in the market. McWilliams strongly believes that any retailer waiting for redemption to come as a result of macro market forces would be left extremely disappointed and that retailing success can now only come about as a result of one’s own direct initiative. Artisan food producer and retailer Peter Ward, who currently 16

Pictured outside the recent ADM Londis Conference are (l-r): artisan producer Peter Ward; Stephen O’Riordan, CEO, ADM Londis plc; legendary All Black Sean Fitzpatrick; Emilie Coles, TNS Magasin; Peter Foley ADM Londis Commercial Director; and Leo McCauley, Chairman, ADM Londis plc.

chairs the Bord Bia Taste Council, addressed delegates on the importance of getting involved in the local community. He outlined a number of techniques which could help stores stand out from their competitors, drawing examples from previous open evenings and supplier exhibitions he has held in his store. Peter highlighted the crucial importance of quality and customer service, stressing the need to make a connection with the customer. Peter also highlighted the importance of building strong relationships with suppliers to enhance your offering and in-store displays. Peter concluded by illustrating how utilising skills within your own family can greatly enhance your store and also provide employment for family members.

Nisa-Today’s Andrew Mouse, Group Sales Director for Nisa-Today’s, gave retailers a background to the Nisa organisation and its strong trading performance and brand strength. He also focused on what the strategic partnership

with Londis would deliver for both organisations. The UK’s National Independent Supermarket Association (Nisa) represents over 700 independent retail members, operating over 5,000 individual stores, alongside over 200 independent wholesale members, with over 200 cash & carry and wholesale depots. Nisa has seen excellent trading performance over the last number of years, claiming 21% of the UK independent market with 11% growth. With total retail sales of over €7 billion, Andrew outlined how a key benefit for Londis retailers from the Nisa-Today’s alliance will come in the form of access to the hugely successful Nisa-Today’s own label Value and Heritage branded products. Andrew foresees huge advantages for Nisa-Today’s and Londis in the sharing of business synergies as champions of the independent mutual business model. Other advantages to their joint collaboration include added value on trading initiatives and the introduction of a proven own label range. Andrew feels that



Photo 1: Andrew Mouse, Group Sales Director for Nisa Today’s, is pictured addressing the Londis Conference. Photo 2: Leading Irish economist, journalist, broadcaster and author, David McWilliams addresses the Conference. Photo 1

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Photo 3: Peter Foley, Commercial Director ADM Londis, provided Conference delegates with an excellent presentation on his vision for the coming year. Photo 4: Legendary New Zealand rugby player Sean Fitzpatrick, speaking at the ADM Londis plc Retailer Conference.

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in joining together, Londis and Nisa will now provide a hugely creditable alternative to the other franchise models in ROI.

The Year Ahead Peter Foley, Commercial Director of ADM Londis, gave an excellent presentation on his vision for the coming year. Peter brought delegates through some of the relevant changes in Ireland from the 1980s through to present day, highlighting changing consumption patterns which see consumers managing with less as a general rule, weighing up opportunities based on what they need rather than what they want, postponing big purchases, forsaking luxuries to avoid mounting debt, as well as a rise in private label purchases and a focus on special offers. Peter did, however, draw some positives from the current situation, noting how 85% of Irish people are still in employment and pointing out that people still have to eat and that they want to shop in Londis stores. Peter went on to highlight some

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new ingredients for success for Londis retailers, including a focus on low pricing; consistent quality in the foodto-go category; a clean, attractive shopping environment; friendly service; and enhanced involvement with customers and community. Highlighting Londis’ impeccable track record of supporting Irish suppliers and their commitment to the ‘Love Irish Food’ initiative, Peter announced the awarding of an inaugural Londis supplier award to PJ Carroll’s and Kerryfresh. Recent examples of Londis bucking market trends included the 30% increase in Londis wine shipments, which is exceptional in the context of a broader 10% decline in the market. Peter illustrated how excellent category management and supplier partnerships, along with retailer buy-in, were the main factors in this success. The Commercial Director went on to discuss Londis’ partnership with Nisa-Today’s, the Londis Fresh deli and ‘grab and go’ consumer offering and the importance of

high store standards. He noted the importance of a skilled support team offering top class logistical support, enhanced IT services, superb buying, category management and marketing support and a team of dedicated and experienced Retail Development Managers and Retail Advisory Managers for stores. Finishing off a comprehensive presentation, Peter declared Londis open for business and in particular, stressed his willingness to work in partnership with suppliers to create successful offerings for consumers.

Other Speakers Other speakers at the conference included Emilie Cole from TNS who brought retailers through consumer in-store trends and All Black legend Sean Fitzpatrick who provided a master class in motivational speaking under the theme of “Be all that you can be”. Sean was a particular highlight for many retailers, who took great inspiration from the life story of one of the sporting world’s greatest legends. 17



Londis Retailing Londis retailers picked up no fewer than 79 awards at the group’s annual Retailing Excellence Awards.


year, Londis celebrated the success of its retailers with an impressive 79 awards handed out across the different categories, including 30 Gold Awards, 22 Silver Awards, 17 Bronze Awards and 10 Category Awards. The various awards are presented to the Londis stores that have excelled in maintaining superior standards across all elements of their business, including, but not limited to, Customer Service, Food Safety, Marketing, Off Licence and the Fresh Fruit and Veg category. New to proceedings this year was the introduction of an award recognising the Londis Store of the Year, which was won by a delighted Ray and Maura Keating from Keating’s Londis Plus, Cobh, Co. Cork. This year also saw Londis recognise suppliers, with PJ Carroll’s taking the inaugural Supplier of the Year Award and Kerry Foods receiving the Food Supplier of the Year Award. All stores and suppliers were well represented at the event and were all delighted to collect their thoroughly deserved awards. The awards ceremony took place in the wonderful setting of the Heritage Spa and Golf Resort and was hosted by Gráinne Seoige, with music provided by One Voice and X Factor finalist Andy Abraham, ensuring celebrations continued well into the night. 18

Pictured receiving their Store of the Year Award at the Londis Retailing Excellence Awards were store owners Maura and Ray Keating, along with Leo Jones and Eileen Griffin, from Keating’s Londis Plus, Cobh, Co. Cork, with Stephen O’Riordan, CEO, ADM Londis, and event MC, Grainne Seoige.

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Excellence Awards Photo 1: Paul McBride and Denis Kelly from Kerry Foods, are pictured accepting the Food Supplier of the Year Award from Peter Foley, Commercial Director ADM Londis. Photo 2: Accepting the Supplier of the Year Award from Peter Foley, Commercial Director, ADM Londis, is Sean Horgan, PJ Carroll & Co. Ltd,

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Photo 3: Sheila Gillan from Gillan’s Londis, Summerhill, Co. Meath, is pictured receiving the Category Award for Best Fruit and Veg department from Peter Foley, Commercial Director, ADM Londis. Photo 4: Pictured receiving her Category Award for Best Wine Beer & Spirits Buying Assistant is Ciara Brennan, with Peter Foley, Commercial Director, ADM Londis. Photo 5: Pictured receiving the Category Award for Best In-Store Food Safety Standards are John and Majella Roche from Roche’s Londis, Doneraile, Co. Cork, with Peter Foley, Commercial Director, ADM Londis.

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Photo 6: Pictured receiving their Gold Award at the Londis Retailing Excellence Awards are Caroline Doyle and Catherine Canavan, Canavan’s Londis, Inch, Co. Wexford. Also pictured are Stephen O’Riordan, CEO, ADM Londis, and event MC Grainne Seoige. Photo 7: Tommy Devlin, Regional Manager, Kennedy’s Londis, Ballyconnell, Co. Cavan, is pictured receiving a Gold Award from Grainne Seoige, event MC, and Stephen O’Riordan, CEO, ADM Londis.

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Photo 8: Paul and Val Boggan from Boggan’s Londis, Rosslare Strand, Co. Wexford, are pictured receiving a Gold Award from Stephen O’Riordan, CEO, ADM Londis, and Grainne Seoige. Photo 9: Ger Griffin of Griffin’s Londis, Sandyford, Dublin 18, receives a Gold Award from Stephen O’Riordan, CEO, ADM Londis, and Grainne Seoige. Photo 10: Joe & Sinead McGoldrick of McGoldrick’s Londis, Dromahair, Co. Leitrim, receiving a Gold Award from Stephen O’Riordan, CEO, ADM Londis, and event MC, Grainne Seoige.

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Irish Distillers Pernod Ricard Results 2008/2009 was another successful year for Irish Distillers Pernod Ricard internationally, with the continued and very positive development of Jameson globally, confirming its status amongst the most dynamic whiskey brands in the global top 100 spirit brands. This sustained progress was achieved despite the very challenging economic conditions for all the brand’s key markets. Jameson achieved sales volumes of 2.76m cases, with double-digit growth in 24 markets. Encouragingly, the value of Jameson sales globally increased by 8%, achieving the key objective of consistent value growth ahead of volume. However, for the 12 months to end June 2009, the spirits market in the Republic of Ireland declined

by 11.1% and this has accelerated to 20% for the six months to June. Irish Distillers Pernod Ricard’s key spirit brands are suffering similar levels of decline in their home market, which are somewhat offset by an upswing in Northern Ireland sales. Barry Crockett, Jameson Master Distiller, is pictured at the Midleton Distillery, Cork, laying down casks for 2030, Jameson’s 250th Anniversary.

Kiwis Show Taste for Durbanville Hills

Arthur’s Goal Scores €24,000

Hats Off to Bollinger

B&F to Distribute Villa Maria

NEW Zealand, regarded by many as the source of the world’s most exciting Sauvignon Blancs, is developing a thirst for Sauvignons from Durbanville Hills. The brand recently won no fewer than six gold medals at the 2009 Michelangelo International Wine Awards: three for Sauvignons, the 2008 Rhinofields Sauvignon Blanc, 2009 Rhinofields Inner Valley Sauvignon Blanc and the singlevineyard 2008 Biesjes Craal Sauvignon Blanc; and three for reds, the 2006 and 2007 vintages of the mainstream Pinotage, as well as the 2006 Rhinofields Merlot. The cellar has recently released its 2009 Sauvignon blanc, a wine “bursting with a complex combination of papaya, grapefruit, lime and winter melon from a superb vintage that is fulfilling all the great expectations it has raised”, according to Cellarmaster Martin Moore (pictured).

LUCKY Emer Lynch from Tara, Co. Meath, was named the winner of the Bollinger Best Hat Competition at The Curragh recently, winning a year’s supply of Champagne from Maison Bollinger with her home-made design. A twist on the traditional best dressed ladies competitions, the Bollinger Best Hat Competition was judged by an actress known for her style, Rachel Kavanagh, who is pictured with winner Emer Lynch on the day. Six ladies made it to the final and battled it out to try for the years’ supply of Bollinger Champagne on offer, with each of the fashion finalists receiving goodie bags jam packed full of luxuries and pampering treats.


AT the start of the hurling championship, as a key feature of the overall Guinness 250 celebrations, Guinness, official sponsor of the GAA Hurling All-Ireland Senior Championship, pledged to donate €250 to the ‘GAA 125 Hurling Development Fund’ for every goal scored during the GAA Hurling All-Ireland Senior Championship. An impressive 96 goals have graced the back of the net on pitches across the four provinces this summer, ensuring that a remarkable €24,000 will be donated from Guinness to the GAA for the future development of the game. Pictured are Rory Sheridan, Sponsorships Manager, Diageo Ireland’ Uachtarán Chumann Lúthchleas Gael, Criostóír Ó Cuana,and Martin Comerford, the Kilkenny player who scored the last goal in this year’s All Ireland Hurling Final.

VILLA Maria Estate, New Zealand’s most awarded winery, has announced a change in its distribution arrangements in Ireland with immediate effect, with Barry & Fitzwilliam taking over the Villa Maria portfolio. “Ireland is extremely important to us because the market is dynamic, expanding and benefits from having some innovative retailers, both in the on and off trade. Over the past decade and more, Allied Drinks have done a fantastic job building a premium position for the Villa Maria brand in Ireland and we look forward to going from strength to strength with our new partner,” noted Charlotte Read, European Market Manager for Villa Maria. “We are fortunate to have teamed up with Barry & Fitzwilliam, a company highly suited to exploit these opportunities.”

Winning Partnership

Powerful Brands

SuperValu – Real Food Real People

Centra – For The Way We Live Today

30 Years of Success

Foreword Since

Contents A Winning Partnership 2 Donal Horgan, Managing Director of SuperValu and Centra, on the winning partnership between Musgrave and its retail partners. Marketing Powerful Brands 6 The vital role of marketing in the development of the SuperValu and Centra brands. Driving a Successful Business 10 SuperValu and Centra’s logistics model has been heralded as one of the finest in the retail industry. A Dynamic Modern Business 12 Information technology is the fundamental link across the Musgrave business.

1876, when brothers Stuart and Thomas Musgrave opened their first store on the North Main Street in Cork, the name Musgrave has become recognised for retail excellence, first in Cork, then across Munster and Ireland and onto the UK and Spain. Musgrave Group is now Ireland’s largest grocery and food distributor with a turnover of €4.8 billion. Pivotal to this recognition has been Musgrave’s two core brands in Ireland – SuperValu and Centra. Since they were first created in 1979 from the original VG brand, they have grown and developed into the two most forward-thinking, innovative, dynamic and competitive retail brands in the country. Both SuperValu and Centra are now recognised as market-leaders and a leading force in both supermarket and convenience retailing, bringing best-in-class food retailing to consumers across the country. A tradition of growth, innovation and dynamism is synonymous with these brands and is the result of hard work, dedication and commitment of the Musgrave team and their retail partners in SuperValu and

SuperValu – A Real Part of Irish Communities 16 SuperValu is more than just a supermarket: it’s a way of life. Centra – For the Way We Live Today 22 Centra has continuously changed to reflect the needs of its consumers. The Retailers’ View 28 SuperValu and Centra retailers look back over the last 30 years of partnership with Ireland’s most successful retail group. 1

Centra, who refuse to accept nothing but the best for their stores. Over the past two years, Musgrave and its retail partners have worked together to further develop the SuperValu and Centra brands, under the banners of ‘Real Food, Real People’ (SuperValu) and ‘Bright Ideas for Everyday Living’ (Centra). Both concepts represent so much more than a change to the sign over the door: rather, they are the culmination of an in-depth partnership process between Musgrave and its retail partners to ensure both the SuperValu and Centra brands represent the very best there is in their respective segments. This process is yet another chapter, which underlines the importance of the partnership between Musgrave and its retail partners, which has seen the brands continue to grow and thrive 30 years on. This Retail News supplement charts the history of these two great brands. We look back over what has been achieved during their 30-year history, but we also look at the brands today and how they are competing in the current difficult market conditions. Retail News wishes Musgrave and its SuperValu and Centra retail partners every success for their future.

In the 30 years since their humble beginnings, SuperValu and Centra have become icons in the Irish retail market. However, Donal Horgan, Managing Director of both brands, is under no illusion that continued success will be down to a lot of hard work and a continuing strong partnership with their independent retail Donal Horgan, Managing Director, SuperValu and Centra. partners.

A Winning Partnership According

customer service, an extensive product range and modern store environments.” Horgan notes. “We believe that a continued concentration on these core strengths, in addition to the innovation and development of our brands to be different and better, will guarantee stand-out and recognition in consumers’ eyes.We believe this approach, which has driven our growth for the past 30 years, will ensure that Musgrave and our SuperValu and Centra brands will exit this recession a stronger, more focused business.” The combined retail turnover for the original 47 stores in their first year of trading 30 years ago was £28.3m. Today, this combined retail turnover figure stands at €3.8 billion, with over 660 stores across the country. “This growth has not occurred by chance and success was by no means instantaneous,” Horgan points out. “However, through working together with our retail partners, we have built a thriving independent sector in the Irish food retail market, bringing differentiation, through stores that are focused on the communities they serve, making a significant contribution to the Irish and local economies.”

to Donal Horgan, the fundamental success behind SuperValu and Centra is the unique partnership between Musgrave and its independent retail partners, coupled with strong buying power, a world class distribution system and a comprehensive suite of brand development and support services, which delivers excellent value to shoppers, no matter where they live in Ireland. “We have 30-year-old brands with excellent track records, which means we have 30 years experience in this market under our belts,” says Horgan. “There is no doubt that we are currently in a very tough market, but we have the experience and knowledge to rise to the challenge and are determined to emerge from this recession a stronger business, well positioned to continue to grow both brands in the future. “To this end, our retail partners have a single-minded focus on delivering exceptionally strong value to consumers. However, unlike some of our competitors, this is being delivered whilst remaining committed to and supportive of Irish jobs and suppliers.” According to Horgan, SuperValu and Centra are one of the leading supporters of Irish food producers and suppliers, with 75% of everything sold in their stores either produced or sourced in Ireland: “significantly more than any other grocery retailer in the Irish market”. These purchases are worth in excess of €2.85 billion every year to the Irish economy and indirectly support 14,000 Irish jobs. “Throughout the history of our SuperValu and Centra brands, we have had a sharp focus on providing exceptional

Growing the Business The SuperValu and Centra brands were launched by Musgrave in 1979, with initially 47 former VG and Shoprite stores signing up to the new formats in year one. SuperValu grew up from the former VG brand; with 28 independent retailers signing up to the new brand, while 19 Shoprite retailers converted to Centra. 2

country’s last remaining independent groups, Pettitt’s Supermarkets, joined the SuperValu network. This brought five new stores to the brand and added 80,000 square feet of food retail space. Today, the footprint for both brands continues to grow, with 194 SuperValu stores and 475 Centra stores dotted across every community in Ireland.

Continuous Investment

John Cole’s original VG store.

Initially, both brands were confined to Munster and South Leinster. However, they subsequently expanded their territory with the acquisition of the Galway-based supermarket group, Nilands, and Garveys of Drogheda, which gave the group access to outlets in Connacht, Ulster, North Leinster and Dublin. One of the most significant events in SuperValu’s growth came in 1987 with the collapse of the H. Williams Group, when Musgrave purchased 15 of these stores and established SuperValu as a major player and

“We have a considerable advantage over our competitors in the quality and value of our partnership with our independent retailers. This relationship is at the heart of our business.”

gained a strong presence in Leinster. The purchase of the L&N group in 1995 also represented another important strategic move for Musgrave. It allowed them to strengthen the brand, further extend the group into key areas of population and help improve the competitiveness of the independent trade. Expansion of the SuperValu and Centra brands has continued at a steady rate over the years, coming from various sources, including existing retailers investing in the expansion of their existing stores, new retailers joining the group and the development of greenfield sites. In 2005, SuperValu reached a significant milestone, when one of the

Continuous investment is one of the key aspects of Musgrave’s success. The company reinvests much of its profits back into its business each year, to ensure retailers are provided with best practice support systems in distribution, technology, marketing, innovation and HR. Its logistics system has seen major investment over the last 30 years. For example, its chilled distribution facilities allow nationwide distribution of an extensive range of fresh food products to all stores across the network, no matter how remote. Like Musgrave, every year SuperValu and Centra retailers invest their own profits back into their businesses, to ensure their stores are modern and meet the highest of standards across the board. In 2008, there were 37 major revamps in SuperValu and 82 in Centra. This work represented an investment of over €120m across both brands.

The launch of Caulfield’s VG supermarket in 1978. 3

“Our strategy, particularly in this competitive environment, is to protect and develop our retailers’ businesses.” Partnership Approach “We have a considerable advantage over our competitors in the quality and value of our partnership with our independent retailers,” Donal Horgan explains. “This relationship is at the heart of our business and has proved its value over the years, ensuring our success. Local ownership is one of our

O’Brien’s SuperValu, Kells, Co. Meath.

unique selling points: the fact that the owner is in the store, invests and lives in the community in which he operates, means he knows his customers and what they want.

“Our strategy, particularly in this competitive environment, is to protect and develop our retailers’ businesses. As a business, we are listening closely to what the Irish consumer wants in terms of a good value offering and buying Irish. Today, Musgrave’s buying power stands in excess of €4.9 billion and we will continue to use this buying power to deliver great value through long term price cuts and unrivalled promotions. We have already delivered price reductions and offers to the value of €230m, with over 3,000 permanent price cuts in-store so far this year. This, coupled with the development of our own brand range, has certainly helped our independent retailers to remain competitive and offer their customers great value, combined with a different and better shopping experience.”

In Conclusion The SuperValu and Centra brands born back in 1979 have developed into a phenomenal force in the Irish retail market today. They are now part of the Irish heritage and the entrepreneurial retailers that run these businesses have made their mark on communities across Ireland. Consumers have built up a relationship with these brands – one that is based on trust and value. Great brands have staying power and longevity and SuperValu and Centra are looking forward to another 30 years of retailing in Ireland.

Dunne’s Centra, Parnell Street, Dublin. 4

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Marketing Powerful Brands Steering two powerful brands through an economic downturn is no easy undertaking, but one that SuperValu and Centra, Marketing Director, Ray Kelly describes as one of the most challenging and exciting times in retailing.


that cut back on marketing activity, while waiting for the economy to bounce back are leaving the door wide open for competitors to grab some of their market share, but this will not be the case with SuperValu and Centra, according to Ray Kelly, SuperValu and Centra Marketing Director. “The SuperValu and Centra brands are 30 years old this year and they have survived other recessions, due to the strength of the brands, our partnership approach with our retailers and our joint commitment to

making it happen,” he says. “Our approach to the current economic challenges will be no different. Together, we have co-created a strong robust plan, which will ensure we emerge from this recession stronger and better than ever before. “However, we believe this is also a time to think about winning – not just surviving, and to this end we are continuing to invest in our marketing strategy, which has been built around extensive and ongoing consumer research and inputs.” Today’s consumers are now looking at grocery shopping through the lens of a much changed economic landscape, but Musgrave is not only keeping pace with this change, but due to their consumer insight strength, staying ahead of the curve and reacting accordingly. As ever, the customer is king and the brand offers are being shaped to reflect the new consumer mind-set. “Over the past 30 years, Musgrave has always been very proactive in responding to changing consumer lifestyles and trends,” 6

Kelly notes. “The work done on bringing both the SuperValu and Centra brands to life and into the homes of Irish consumers down through the years has been groundbreaking. Centra’s ‘For the Way We Live Today’ and SuperValu’s ‘Real Food, Real People’ brand positioning really resonate with the consumer in terms of understanding and association.”

Building the Brands Innovation has always been at the heart of the Musgrave marketing strategies. VG evolved into VG SuperValu and due to expansion

and acquisitions later broke up into two distinct brands – SuperValu and Centra. During this time, the two strongest players in the market were Dunnes and Quinnsworth, but SuperValu was very quickly snapping at their heels. While the SuperValu and Centra brand messaging and identities have evolved and grown over the years, the process and methods of communication have continually

evolved. The marketing strategy continually delivers cut-through for both brands, which lead their respective market sectors. Since being appointed Marketing Director in 2004, Kelly’s marketing strategy has contributed to the growth of the brands in an increasingly challenging and competitive retail environment. Over the last five years, he has led the SuperValu and Centra brands through a number


“Any competitor can match you on price, at the end of the day, but what they can’t match you on is the total package you can offer your customer. This is why we set about identifying our real brand differentiators.” of significant landmarks that have ensured the ongoing success and growth of both brands. One particular landmark and one that has deemed most successful is the work that was undertaken on the brand development process. “It was recognised within the business, that for the brands to remain successful

and ahead of the game, we had to ensure that both brands were able to significantly differentiate themselves from the competition,” explains Kelly. “Any competitor can match you on price at the end of the day, but what they can’t match you on is the total package you can offer your customer. This is why we set about identifying our real brand differentiators.” Musgrave worked closely with its retail partners in this task and the development process involved researching the market thoroughly and ensuring these key learnings informed the process. For example, consumers believed SuperValu had an excellent ‘fresh food’ offer, but needed to keep its approach authentic and retain the local and personable aspect of the stores. Hence the brand proposition became ‘Real Food, Real People’. This proposition has worked extremely well for the brand, with SuperValu retailers and staff immediately identifying with the approach and engaging with it from day one. They have also worked tirelessly since to bring this to life in-store for consumers. On the Centra side, exactly the same process was carried out. Both consumers and stakeholders saw this brand, as young, bright and energetic – a buzzy beacon at the heart of every community, in tune with the demands of its consumers’ lifestyles. Hence the Centra brand essence of ‘Bright Ideas for Everyday Living’ was born and

now shapes everything done around the brand and in the stores, allowing retailers to provide shopping solutions to their customers, which make a difference to their every day lives.

Changing Consumer Trends Whatever about the changes to the brand and the store environment, one thing is sure; the customer is almost a different species from their peers of 30 years ago. Over these years, consumer tastes have become almost unrecognisable to those of the brands’ early days. The advent of the Celtic Tiger in the late ’90s brought even more change, says Kelly: “Irish consumers suddenly had more disposable income and were better educated and travelled than at any other time in our history. We reacted by developing and stocking more exotic ranges and products. A big emphasis was put on convenience meals and of course shoppers wanted to eat fresh and healthy food. “However, today, consumer needs and wants have shifted again. They are still looking for fresh, healthy food with a strong emphasis on good value, but are more willing to cook at home from scratch. They are also telling us that Irish products are extremely important to them, but not just Irish, we are also being asked for product with a strong local heritage and for us, these asks play right to the very heart of our brand offering. We have 8

“We know we have a strong robust plan in place that will ensure we emerge from this recession stronger and better than ever before. This is a time to think about winning – not just surviving.” a strong focus on supporting Irish suppliers and in fact have delivered our excellent value for money offer, without sacrificing this commitment.” Value, of course, is embedded in both brands and they have responded of late with some of the strongest, market leading value initiatives. “We have always been innovative in our approach to value, but our combination of excellent everyday low pricing and market leading promotions is both engaging and exciting the consumer,” Kelly notes. “We have led out in the meal deal arena, are the only retailer offering free veg with the family meat purchase and have been delivering deep discounts on the products consumers really want to buy. This year alone, within SuperValu, we will deliver in excess of €230m worth of value directly to the consumer.” However, Kelly believes the challenges will keep on coming and in a retail environment that is constantly changing, his commitment is that Musgrave and its retail partners will continue to innovate across both the SuperValu and Centra brands, to ensure the consumer is getting exactly what they want from two brands that are now an irrevocable part of the Irish retail landscape.

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Driving a Successful Business A key element in securing Musgrave Retail Partners’ strong position in the grocery market is efficient distribution to its retail partners.


ability to stock what the customer wants, when they want it and in the best possible condition, at good value pricing is a challenge to all retailers today. This challenge is taken on by the logistics team at Musgrave, under the keen eye of Logistics Director, Neal Austerberry. Austerberry, who has over 20 years experience in logistics, and his team are constantly working on developing and refining this unique transport and distribution system. “We currently provide ambient and chill distribution to over 660

independent SuperValu and Centra stores across Ireland,” he explains. “The efficiencies we bring to this system support our retailers’ value offer, in addition to ensuring we all deliver on our promise of providing our consumers with the best fresh quality produce travelling from farm to fork within 48 to 72 hours – no small feat, but one we are in a position to deliver on. We work to a best practice policy and continuously invest in technology, systems, fleet and personnel to ensure we are providing our retailers with the most efficient and reliable system.”

The company has operated a unique and very efficient central distribution service to the independently owned SuperValu and Centra stores since the founding of the brands in 1979. This service originally took in dry grocery goods only, and the remainder of the stores’ stock – chilled, fresh and frozen foods – was distributed by the individual suppliers and centrally billed through Musgrave. Based on the success of the ambient system, the company in the mid-’90s identified central distribution of chilled, fresh and frozen produce as a major opportunity for the group to further improve its service to retailers and suppliers.

Central Chilled Distribution In 1998, Musgrave became the pioneers for central chilled distribution in Ireland, investing around €38m in infrastructure and technology. Central distribution of chilled, fresh and frozen produce has had a major impact on the way Musgrave does business with producers and introduced important efficiencies, as well as improved safety and quality control measures to the food chain. As the first retail group in Ireland to introduce this type of 10

on a phased basis which would add almost 200,000 square feet of additional warehousing space. This expansion was completed in 2009, ensuring the company is well positioned to meet capacity demands well into the future.

Largest Network in Ireland

central distribution, Musgrave facilitated major volume and range improvements for retailers and also for suppliers. With improved distribution for suppliers’ product, the range available and quality of the product for consumers in local stores was vastly improved. Musgrave opened up the Irish market both for suppliers and retailers, as it now had the ability to distribute any product nationwide within 12 to 24 hours, whereas previously not all suppliers had the distribution ability to serve the whole country, particularly the smaller, local operators.

Sustained Growth In 2005, due to sustained growth and expansion in the market, Musgrave further expanded its distribution facilities with a new €35m ambient distribution facility in Kilcock, County Kildare. This 26-acre development was the biggest investment in distribution facilities on a single site in the Republic of Ireland by Musgrave and proved to be a key driver in Musgrave’s future business growth and development. The recently expanded Kilcock centre spans 280,000 square feet of warehousing, loading bays, offices and associated facilities. In 2007, the company once again reviewed its capacity and committed to further expansion with the announcement of a €48m infrastructure investment programme

Musgrave began distribution with a small fleet of five trucks. Today, Musgrave operates a fleet of 220 trucks and over 495 trailers, delivering over 1.6m cases of ambient and chilled goods to SuperValu and Centra stores each week. The chill warehouse operates a stockless system: each morning the company begins with an empty warehouse, fresh product is delivered throughout the day, which is then subsequently delivered to SuperValu and Centra stores for sale fresh on the shelves first thing the following morning. The logistic team operates 24 hours a day, 364 days a year - receiving thousands of products in bulk on pallets, which are broken down into cases for delivery to the stores. Musgrave vehicles make over 5,000 deliveries each week into towns and villages throughout Ireland, thus ensuring the freshest of product is available to SuperValu and Centra customers every day of the week. SuperValu stores receive 8-10 deliveries a week, covering all their ambient, fresh, chilled and frozen produce, instead of having to process hundreds of different deliveries from individual suppliers each week, while


Centra stores have deliveries 4-5 times per week. The main advantages to store owners are regular and reliable supply, quality control and traceability, efficiency in goods inwards, reduced accounting and administration and access to a wider product range. Musgrave also operates a strategic backhaul system. Empty vehicles, on return routes from deliveries to stores, pick up goods from suppliers en route back to the depot. This delivers control to the business and ensures the vehicle capacity is fully utilised at all times. In 2008 alone, this facility reduced traffic in Ireland by taking 3.85m supplier vehicle miles off Irish roads.

Constant Investment According to Neal Austerberry, “Constant investment and development of the company’s infrastructure will ensure Musgrave continues to lead the Irish grocery sector in terms of providing cost-effective, customer oriented solutions to supply chain management. An efficient supply chain means our independent retail partners in SuperValu and Centra can compete effectively with the multiples, offer better value and better quality produce, while still supporting Irish suppliers and meeting changing consumer needs, whether they’re in a major urban centre or a rural village.” Supply chain logistics in the food sector is complex, with stores requiring different stock levels and different ranges at different times. Delivering goods in peak condition requires precise systems and good operating procedures, and Musgrave, with 30 years of experience, knows how to get it done.

A Dynamic Modern Business Self-checkout systems, multimedia displays, electronic shelf-edge labeling, online payment solutions and loyalty card systems are just some of the innovations driven by technological advances that have dramatically improved the retail experiences for customers over the years, while delivering cost savings and efficiencies for retailers.


is key and pace is vital in the IT world, particularly in the retail business,” explains IT Director, John O’Callaghan. “To compete effectively and deliver a first class service to our retailers, we need to know the consumer and be aware of the latest trends in the market to be in a position to capture and respond to this insight rapidly.” Over the years, as consumer demands increase, technology has evolved rapidly to support these changes. “Our IT systems must be able to satisfy these demands in all areas of our business from stock management, supply chain systems, management information and financial systems,” says O’Callaghan. “We are constantly looking at new systems and the value they can bring to our business and ultimately to our retailers and our customers. Throughout the years, we have made significant changes to our operations which have all been led by technology.” The big areas in retailing are advances in EPoS technology, mobile computing, telecommunications, supply chain, bar-coding, online loyalty schemes and payment solutions. According to O’Callaghan, “Down through the years, Musgrave has always listened to its SuperValu

and Centra retail partners and then applies best technical practices to deliver cutting edge solutions that are practical, effective and, above all, provide added value to the business. The role of IT has changed from being seen as providing purely technical systems, to one that is central to the business in terms of strategy planning and adding value.”

Enabling Technologies Over the last 30 years, Musgrave’s dedicated retail systems division has constantly refined the technology systems and support to its customers. One of the biggest advances in efficient management of the supply chain and one that has been underpinning the Musgrave supply chain management system is its adoption of E-commerce based on the internet and electronic data interchange (EDI) – the paper-less sharing of information between all supply chain partners. This technology forms part of the bedrock of the retail sector and new and innovative ways are constantly being evaluated to exploit the emerging mobile and web technologies. EDI is a significant enabling technology for an 12

efficient supply chain and Musgrave has been operating a paper-less environment with all its suppliers for almost a decade now. All ordering, invoicing and exchange of commercial transactions are done electronically via EDI. However, Musgrave have now taken this a step further, having introduced electronic invoice matching, which matches the goods received note to the electronic invoice. The impact of the EDI technology has been dramatic and has changed the way Musgrave carries out its interactions with its retail partners and its suppliers, making it more efficient and cost effective to deliver product nationwide every day.

“We use E-commerce solutions to streamline the order-to-delivery process. For example, if you look at our chilled distribution system, all orders placed by our retail partners in SuperValu and Centra stores are consolidated, split by supplier and sent to the them via EDI,” explains O’Callaghan. “The timeliness of the operation is key: the goods in some instances, particularly in chill, are delivered to our warehouse for immediate onward delivery to our stores, creating an incredibly efficient supply chain.”

Electronic Ordering Today, all in-store orders are placed electronically, using handheld RF devices on the shop floor. Gone are the days when retailers used to place orders on price list order forms (PLOF’s). These wireless hand-held devices display all the relevant product and price information, including the pricing and sales history, to help with the ordering decisions and ensuring that sufficient product is available for consumers. In the early ’90s, Musgrave introduced the concept of scanning into its stores. This signified major change in the way the stores did

business. Replacing the old price tag method with this new bar code technology provided the business with great scope for efficiencies and cost savings. InfoGold was another important IT tool introduced in Musgrave in the late ’90s. This was driven by the abundance of data captured by the EPoS system, helping drive sales and margin improvements through benchmarking the best stores’ performance in each product category, in terms of margin and participation, and then identifying the elements that contributed to the enhanced performance. This scanning system was later updated with WebWise, a benchmarking service, which is vital to helping transfer best practice between stores, providing information that facilitates stores taking action to support sales and category management decisions. According to O’Callaghan, “Making effective use of the data and sharing of knowledge and insight is the real benefit.”

Right Product, Right Time, Right Place The business of grocery retailing is constantly changing and while it may


not be significantly obvious to the consumer, it is technology that is driving this change, to create a streamlined supply chain that ensures the right products are on the shelf in the right quantity and at the right time. The Musgrave supply chain, as well as being people dependent, is absolutely technology dependent. Therefore, O’Callaghan and his team have to ensure the technology systems are robust enough to support and drive the business processes 24/7, 365 days a year. Centralised deliveries cover the full product range, with a lead time for fresh produce of just 12-24 hours between the store placing the order and the product being delivered. This efficiency is down to advanced technology, linking the store, the Musgrave distribution operation and suppliers - ensuring the business can deliver the freshest product to SuperValu and Centra retailers for their consumers.

“The timeliness, availability and accuracy of data are making a massive difference to the ‘Rights of Retailing: right product, right place, right time’!”

In the distribution operation, automated processes, including loading containers onto trucks and forklift operations, are controlled by IT systems. Hand-held scanners check all store orders that are ready for dispatch to ensure accuracy and facilitate tracking of orders. Another technological innovation that has greatly benefited the Musgrave distribution system and ultimately its stores was the advent of ‘voice picking’. This voice technology uses speech recognition and speech synthesis to enable operatives to work effectively with the Warehouse Management System (WMS), in addition to facilitating productivity benefits for Musgrave. Operatives use a wireless, wearable computer with a headset and microphone to receive instructions; they are directed to the correct goods and advised on quantity. They verbally then confirm their actions back to the system. This allows improved accuracy and productivity, delivering huge benefits to stores in terms of correct deliveries and cost efficiencies.

Business Intelligence Some of the biggest developments, however, are not visible to the public at all. One of the greatest advantages of computer and web-based technology has been the availability of first class business intelligence, according to O’Callaghan. “Our relationship with our retail partners is very strong and continues to grow, particularly in this economic climate, where it is imperative that we all work closely together to ensure

our business remains successful,” he says. “This relationship with, and support of, our retailers has allowed us to develop the systems we presently have today. “Whether it’s sales, margin or stock balance reporting, the level of business intelligence now available is having a huge effect on retailing, thanks to the development of effective back-office technology and BI (business intelligence) tools,” he notes. “The timeliness, availability and accuracy of data are making a massive difference to the ‘Rights of Retailing: right product, right place, right time’! Decisions are now being made based on extremely accurate information. These types of technologies may not be visible to the consumer but, the end result, the Holy Grail that is on-shelf availability, is now driven by slick processes and accurate information.”

Musgrave Simplifies Retailing Musgrave is currently rolling out its ‘MSR - Musgrave Simplifies Retailing’ solution to the entire network of SuperValu and Centra retailers. “The MSR concept includes many improved back-office processes and a functionality rich information system,” O’Callaghan says. “It is architected around one common and shared solution between Musgrave and our retailers – really producing one version of the truth.” O’Callaghan adds, “Currently we are rolling out a loyalty solution, ‘Real Rewards’, to our SuperValu network. There might not be anything new in the concept of loyalty systems, but our use of the technology is quite novel, in that there is flexibility in the solution for the retailer to customise it to suit local promotions for his individual store or group of stores as well as national promotions.” Information technology plays 14

a central role in delivering the brand promise of good quality food at good value prices, combined with excellent customer service and range. Integrated point-of-sale, ordering, and back office systems, as well as scanning and stocktaking solutions means that retailers spend less time ordering and keeping records, and more time doing what they do best – delivering top class customer service and the right retail offer for their store. “Innovation and pace enabled through a robust ICT infrastructure are integral to the continued success of our retail systems going forward,” O’Callaghan concludes. “The electronic supply-chain, from producer/supplier through the retailer to the consumer, will continue to develop on the back of advances in technology.” The functionality of the Musgrave IT system has always and will always set the standard within the grocery retail sector. The efficiency and innovation of these systems in themselves provide proof of Musgrave’s long-term commitment to assuring its retailers that it can always deliver speed and agility throughout the supply chain. For retailers, this means that Musgrave can provide the right product, at the right time and of course, in this difficult economic climate, at the right price!

Congratulations to SuperValu & Centra on 30 successful years from

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16/10/2009 14:07

SuperValu: A Real Part of Irish Communities “In every town across Ireland, SuperValu is more than just a store providing a unique shopping experience – it’s a way of life,” says Ciaran Levis, SuperValu Sales Director.


30 years, SuperValu has become part of the very fabric of Irish society, an ethos and shopping experience that has been passed on from generation to generation, and which continues to evolve and grow. Hence SuperValu’s relationship with the Irish consumer has grown along the way and is synonymous with a passion for food, an excellent value offering and its very unique partnership with its independent retailers across the country. Given the local affection for these stores, SuperValu has become an icon for a national brand with a personal touch. “The cornerstone of the SuperValu success across the network of 194 stores, is its commitment to value, quality, freshness and the best possible customer experience in convenient locations,” says Ciaran Levis, SuperValu Sales Director.

The mere mention of SuperValu to the Irish consumer conjures up a number of images; from cakes and breads ‘just like my mother used to make’, a state-of-the-art shopping experience, to top class Irish meat and the availability of local produce from local suppliers. But above all, it represents a store so embedded in its community, it is hard to see where the store stops and the community starts – they are one and the same.

Making the Right Moves 30 years ago, 27 VG stores made the change-over to the then unknown SuperValu name and concept. More than that, the retailers invested heavily in their stores and wholeheartedly adopted the new ‘super-

market’ philosophy. Today, this leap into the unknown has certainly paid off, with over 194 independent stores trading under the SuperValu brand, a name that is now a leading force in Irish grocery retailing. The original store owners are the pioneers that have seen SuperValu’s share of the market quadruple in just 30 years. Working in partnership with Musgrave, these progressive retailers have brought the independent supermarket business in Ireland onto an equal footing with the multiples – an achievement that is still unique in Europe. In 2008, SuperValu recorded another year of growth with sales of €2.3 billion, up 3.4%. This growth saw eight new stores open with the completion of 37 major revamps, representing a combined investment of €65m from SuperValu owners. In 1998, SuperValu boasted employment in the region of 5,500 across the network of stores: today, this figure stands at just over 14,000 people employed throughout the group.

SuperValu – Looking Good SuperValu’s success is based on a commitment to innovation in all areas of the business to reflect the changing lifestyles and demands of its customers. The SuperValu image has evolved considerably throughout the years, particularly in the area of store design and environment, which has pushed

Fleming’s SuperValu in 1996. 16

environment itself. The Musgrave store design team were tasked with creating an environment that brought this ethos to life. Elevated ceilings, the use of earthy colours, wooden flooring and strategically placed murals Fleming’s SuperValu: SuperValu of the brought the new Year 2009 Award Winner. brand essence to life, while the fresh food areas took on all SuperValu stores into the premier an almost market-like feel. division in terms of their look and feel SuperValu Mallow and SuperValu for the consumer. Kells were the first two stores to SuperValu and its store owners embrace the new concepts, which have invested considerably over have subsequently been rolled out to the last 30 years in developing new and revamped stores across the their stores and incorporating country. environmentally friendly and cost efficient design elements. Customers now demand a lot more of their Sustainability retail environment and shopping In-Store experience than previous generations. McInerney’s SuperValu has just Customers expect the ‘WOW’ factor, opened their new look 21,500 square good layout, easy access, pleasant and feet SuperValu store in Loughrea, bright surroundings and easy to read Co. Galway. This store not only signage. Gone are the days of narrow embodies the SuperValu ‘Real Food, aisles and cluttered displays. Real People’ concept, but is one that In 2007, SuperValu and it retail will also prove a significant milestone partners stopped and took a long hard for in-store sustainability initiatives look at the future direction for the at Musgrave. brand and it was out of this work that The store design team at the brand proposition of ‘Real Food, Musgrave, in conjunction with the Real People’ was born. ‘Real Food, McInerney family, have developed Real People’ is at the very heart of everything that SuperValu does. It underlines its desire to be the leading Irish retailer who is down-to-earth and takes real care in delivering good honestly priced food for today’s consumer, directly into the heart of the communities in which they live. It is what the SuperValu shopping experience is all about, and it’s brought to life through the combination of our excellent value for money, depth and breadth of the range, people expertise, community active retailing and the level of customer service in all SuperValu stores. One of the most significant changes was perhaps within the store 17

“‘Real Food Real People’ is not just a strap line, it is the very essence of what the brand stands for.” ways to reduce greenhouse emissions by up to 30% in the new store. “SuperValu Loughrea is 30% more efficient than a store built a couple of years ago,” explains DJ McAllen, Store Development Director, Musgrave. “We have always been committed to making our stores as energy efficient as possible, but it is amazing how far we have come even in the two short years, since we began this process. “At Musgrave, we are committed to achieving a 30% reduction in energy consumption in all new stores by 2012,” he continues. “However, we are not just limited to new stores: we are currently working with over 270 of our retail partners across the network who have already committed to reducing energy consumption by 10-15% by 2010.” McAllen continues, “The best way to make ‘sustainability’ sustainable is to identify the economic opportunities that it provides. To this end, we only recommend technologies to our retailers that have a proven

“Congratulations from the Cross Group, proud to have been working with SuperValu and Centra for the last 30 years” Armagh: +44 (0) 28 3752 6090 Cork: +353 (0) 21 430 2321 Dublin: +353 (0) 1 451 1915 Limerick: +353 (0) 61 417 415

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return on investment. For the last 30 years, we have been committed to bringing best in class initiatives to our retailers’ businesses and today our SuperValu stores are reaping the benefits of these developments. We are constantly monitoring advancements in sustainable technologies within the retail environment by assessing viability or piloting the technologies to prove their quality.”

SuperValu in Action In the 1980s, the dominant players in the Irish grocery market were Dunnes Stores and Quinnsworth. For SuperValu to compete, it had to make its mark on the market and build consumer awareness and confidence. To do this, the brand concentrated on developing and highlighting its points of difference to the consumer. The ‘SuperValu Values You’ campaign was developed to promote SuperValu’s value offering, its friendly staff, product range and fresh meat. A variety of shoppers with different needs were featured in this advertising campaign to appeal to SuperValu shoppers of all age groups and tastes. The modern day manifestation of this would later become the current brand proposition of ‘Real Food, Real People’. Throughout the 1990s, SuperValu concentrated on a

television advertising strategy, which aggressively promoted price and value for the consumer. This campaign built huge consumer awareness on competitive pricing at SuperValu and the power of promotions and special offers. In the late ’90s, a new advertising campaign was set to work harder than ever on behalf of SuperValu stores across the country. The marketing budget was substantially increased to ensure cut-through for the campaign and the ‘Shopping as it Should Be’ slogan was born. This campaign focused exclusively on the benefits that consumers derived from shopping with SuperValu. Similar to the early ’90s, it is now all about ‘Value, The SuperValu Way’, a direction reflecting the current economic climate and how the SuperValu offer has adapted to bring the best value offering to the market and hard-pressed consumers. The core messaging for the campaign is built around the unique value for money offer within SuperValu by communicating the unique business model which provides the consumer with choice and value from a supermarket that is locally owned, locally operated and yet part of Ireland’s largest food buying group. This newest campaign was filmed on location in O’Brien’s SuperValu in Kells, Co. Meath, and features a selection of SuperValu retailers from 19

across the country demonstrating the local and independent ownership of SuperValu stores operating in their own community. The campaign consists of television, radio, outdoor, print and on-line advertising, combining a total spend of €4m.

Real Food, Real People When it comes to the insight into how SuperValu continues to out-perform the market, Musgrave believes its ‘Real Food, Real People’ brand position is key and dictates how the brand behaves right across the board. “‘Real Food Real People’ is not just a strap line, it is the very essence of what the brand stands for,” explains Ciaran Levis. “It underlines SuperValu’s desire to be the leading Irish retailer who is down-to-earth and takes real care in delivering good value food for today’s consumer, directly into the hearts of the communities in which they operate. Above all, each and every SuperValu retailer and their team buy into this concept and bring it to life for their customers on a daily basis.” ‘Real Food, Real People’ is what the SuperValu shopping experience is all about and it is brought to life through the combination of value for money offer, excellent range, people expertise, community active retailing and the level of customer service delivered in-store.

In an era when supermarkets are becoming increasingly anonymous, SuperValu continues to offer its customers a personal and very different shopping experience which is tailored by the store owner to suit the communities they serve.

and local jobs,” he stresses. “For us, this is an easy ask: we just need to continue to do what we are good at – offer excellent value to the consumer, without sacrificing our support for Irish suppliers.”

Supporting Irish Suppliers

In terms of its value offering, it was back in 1996 when SuperValu first launched its own brand range of products, which at the time featured just 200 products. Today, this range has gone from strength to strength and the number of products has increased to over 2,200, many being sourced from Irish suppliers. SuperValu sees own brand products as a key tool for delivering value for money and choice to consumers. As price and value is becoming ever more important in the shopping experience, 80% of Irish consumers buy own brand products (Source: ACNielsen) and of those that do, 46% are increasing the amount that they buy regularly. Research also indicates that shoppers are more discerning and while they want value for money, they also demand good quality and, ideally prefer to buy Irish products. SuperValu has a policy of sourcing from Irish suppliers where possible, to produce its own brand products, in order to support Irish industry and to reflect the taste of Irish consumers for Irish brands. Suppliers of SuperValu brands include Oliver Carty Ltd, Dunhill Cuisine, Follain, Avondale, Irish Yoghurts and Arthur Mallon Foods.

SuperValu has a long established policy of supporting Irish suppliers wherever possible, working with large and small companies across Ireland to provide the Irish consumer with top quality Irish fresh foods. “Aligned and completely supporting the SuperValu brand essence of ‘Real Food Real People’, our commitment to Irish based producers includes combined Irish retail sales of €1 billion of fresh food in 2008,” Levis adds. Continuing, Levis says, “During 2008 alone, SuperValu made a significant contribution to the Irish economy and Irish suppliers with 75% of all products purchased on behalf of all its retail partners, either produced or manufactured in Ireland. This represents total purchases from Irish suppliers in excess of €2.85 billion at retail level, serving to both create and protect Irish jobs and livelihoods and also sustain vibrant local Irish communities. “Our commitment to local and Irish has formed the backbone of our offer for some time, but it is interesting that in this difficult economic environment our consumers are telling us they want to see more of this, so they can support Irish

SuperValu Own Brand


The varied range of own brand products at SuperValu, play a key role in delivering its policy of providing its customers with good quality products at good value prices. Own brand prices offer savings of up to 20% when compared to brands, with SuperValu’s Nice Price range offering savings of up to 40% on key value lines, while SuperValu Supreme delivers value for money on premium products.

Focused on Local Communities Throughout the last 30 years, SuperValu and its retail partners have been committed to building and supporting vibrant local Irish communities. As SuperValu retailers live and work in the communities they serve, they form an integral part of the community, supporting community-based projects that enhance local community life. SuperValu’s 19-year sponsorship of Tidy Towns has played a large part in building customer loyalty and has given retailers an opportunity to reinvest in the towns and villages of which they are part. Another community initiative run by SuperValu retailers is the ‘Kids in Action’ programme. This programme has, over the past four years, encouraged an active and healthy lifestyle amongst primary school children and their parents. Since its inception in 2006, more than €4.6m of free sports and active play equipment has been gifted to primary schools nationwide. “SuperValu has a strong customer focus, and as our retailers are on the ground each day, meeting with their customers, we are in a position to respond to consumer insights and feedback, allowing the brand to deliver exactly the product range that the consumer wants at good value prices,” Levis concludes. “Customer and market research, combined with the expertise and experience of the local store owner, all contribute to the success of SuperValu in the marketplace and we are confident that this partnership will continue to drive the brand successfully in the market for another 30 years.”

ribworld Retail News Oct 09 A4



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Centra: For The Way We Live Today In every town in Ireland, there is a Centra store that provides its customers with innovative solutions for everyday needs: a store that is as much an experience as a place to shop. Consistent growth and innovation are the hallmarks of this great brand which is recognised for its leading edge approach to convenience retailing in Ireland today.


all about enthusiasm, persistence, continuous investment, vision and above all, confidence in the brand,” says Michael Morgan, Centra Sales Director, commenting on Centra’s success. “Our retail partners believe in the Centra brand and what it stands for. In

partnership with Musgrave, they work tirelessly to bring the essence of our brand, ‘Bright Ideas for Everyday Living’, to life in-store on a daily basis.” Centra prides itself on being one of Ireland’s leading retail brands, continuously innovating and looking for new ways to delight its customers. It is


instantly recognisable as a brand that provides the shopper with a range of products and services of the highest quality, at great prices. Its high visibility has been achieved not just by being in convenient locations, but by continuous and strong marketing campaigns, in association with a commitment to innovation across the business to reflect the changing lifestyles and demands of consumers. Despite the high level of competition in the market, Irish consumers are still choosing Centra, as reflected in the brand’s continued market share growth, even in these difficult times. This is a huge

endorsement for this bright energetic brand, which consistently strives to deliver good value shopping solutions that make a positive difference to the lives of everyday people, no matter where they are located.

1987, Musgrave further expanded its operation with the acquisition of the H. Williams stores, which allowed further expansion opportunities for the Centra brand. As we are all aware, the ‘80s were a tough economic decade for all involved in the grocery trade. However, with clever investment, increased buying power and the ability to deliver a good value offering to its consumers, Centra prospered and expanded the network to 252 stores. Another significant contributor to this growth was the advent of centralised distribution of fresh, chilled and frozen products. The sheer efficiency

Phenomenal Growth – A Phenomenal Brand Today, over 475 Centra stores are scattered throughout Ireland, with the addition of 35 new stores in 2008 alone. The combined retail turnover of the Centra network in the first year of trading was just €6m: in 1998, this grew to £263m, while seven years later in 2005, the brand’s sales broke through the €1 billion mark. 2008 saw Centra continue this growth, recording sales of €1.5 billion, with employment growing to over 14,000 across the network. Centra started life 30 years ago from a group of 19 former ShopRite stores, with its growth happening gradually, as the brand was confined to Munster and South Leinster. However, the purchase of the Nilands and Garvey VG groups allowed it to expand in the east coast and launch itself into the Dublin market. In 23

and cost savings of this distribution model meant that Centra could compete effectively with the market’s key players. The early ‘90s were also tough times for Centra retailers, with interest rates hitting an all time high and price wars raging throughout the industry. However, Musgrave and its Centra retail partners continued to stay ahead of the challenge and drive on their businesses. They recognised they had a successful model and were prepared to re-invest in their stores. This re-investment guaranteed their success in the boom years that were to follow.

Centra – For the Way We Live Today The late ‘90s brought massive changes, not only to the Irish grocery market but for the Centra brand in particular. The halcyon days of the Celtic Tiger saw the Irish consumer change dramatically: we suddenly had more disposable income than any time in the past and were prepared to spend it, but as a nation, we had become far more time-pressed and time-conscious than ever before, seeking out immedi-

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Bright Ideas for Everyday Living

ate and convenient food solutions. “Centra has always adapted to its market, whether in recession or growth and it excelled at delivering what customers wanted during the Celtic Tiger years, when the whole emphasis on convenience changed. People were looking for good food that was easy to cook, healthy and quick,” recalls Morgan. “Lifestyles changed enormously. People were ‘cash rich and time poor’, and we built our offer to suit this new consumer need. People were less focused on price and wanted a more convenient, easy-touse shopping solution. Food-to-go really took off and we took advantage of this development, with an offer in the market that was and still is second to none. “As the Centra business is all about responding to changing consumer tastes and lifestyles, we stepped up to the challenge,” he continues. “We met the demand for easily accessible and convenient stores through our expansion plans, we provided an innovative range of products and services locally and high-quality healthy food at competitive prices.”

In 2006, the Centra state of-the-art convenience offering focused on delivering ‘Bright Ideas for Everyday Living’. The aim was to exceed consumer expectations and to stay ahead of the competition through driving innovation across all formats in stores. It was all about taking the hassle out of the daily lives of consumers through the provision of clever, creative convenience shopping solutions that meet their daily needs. Throughout 2007 and 2008, Musgrave and Centra retailers worked hard to bring fresh ideas to local communities, through ground-breaking initiatives such as soup, salad, breakfast and smoothie bars, as well as introducing in-store wokeries. In addition, Musgrave also expanded its Centra Own Brand range, including adding its ‘Rite Price’ value range. This range was developed to fill a particular gap in the market, but also in anticipation of what customers were going to need in the future. It delivered a wide range of high quality products at extremely competitive prices. Centra currently stocks over 785 own brand products across its stores, unrivalled within the convenience market. This extensive range of Centra Brand products plays a key role in delivering everyday value for the budget conscious shopper. Own brand prices can offer savings of up to 20% when compared to their branded equivalent.

Setting the Brand Apart Strong advertising and promotions have always been a mainstay for the brand. Its advertising has varied in style over the years, but the brand has remained consistent in its messaging, resulting in excellent brand awareness and customer loyalty. Centra launched its first television advertising campaign in 1990 with its ‘Just a Walk Away’ advert. This campaign emphasised the 25

convenience of shopping with Centra, while highlighting how stores catered for all types of consumers’ needs and tastes. The essence of this messaging has continued through the years, with the inclusion of a strong value message in 1994 with the ‘Quality at the Right Price’ advert. In 1999, in response to a changing market environment, Centra launch its ‘For the Way We Live Today’ campaign. The campaign was aimed at setting Centra apart from the competition, and heroised the vibrant local store, in tune with lifestyle trends of the day, while at the same time reflecting the warm, community and local nature of the independently owned and operated Centra stores. Since then, Centra’s advertising has focused on this campaign theme and while the new adverts launched in 2007 did just that, they also built on the Centra brand essence of ‘Bright Ideas for Everyday Living’. They highlighted all of Centra’s key strengths, including convenient location, excellent range, value offering and fantastic store environments. Even when the economy began to dip mid-2008, Centra once again responded positively to its environment and launched its ‘Good News’ campaign; a campaign developed to remind consumers that there is always some good news out there, including the excellent value available in Centra stores throughout the country.

Bringing Bright Ideas to Life Just over three years ago, the Centra brand was re-positioned under the ‘Bright Ideas for Everyday Living’ banner. This is not just a brand positioning, but is the driving force at the heart of everything that the brand does. This brand vision not only communicates how Centra is seen by the consumer, but dictates everything from store environment, through to the products and services provided by Centra’s independent retail partners and indeed customer service. According to Morgan “When ‘Bright Ideas for Everyday Living’ was developed, it shaped everything we did around the brand and

Flahavan’s the porridge oat experts, have been operating its oat mill in Kilmacthomas, Co Waterford for over 200 years, making it one of Ireland’s longest private Irish family- run food businesses. The Flahavan’s name and brands are resonant of Irish tradition and integrity and use locally produced oats from a select panel of growers in its range of products. Flahavan’s is Ireland’s favourite porridge and has a loyal Irish customer base with over one million servings of Flahavan’s consumed nationwide each week. The distinctive Flahavan’s taste, quality and innovative format varieties combine to make Flahavan’s Oats the No.1 brand that consumers can trust. Flahavan’s delicious range of oat-based is 100% Irish and are simply good for you.

E. Flahavan & Sons Ltd would like to congratulate Supervalu/Centra on its 30th birthday celebration and wish them continued success in the future.

BÄ.RO Lighting is delighted to congratulate Musgrave Retail Partners Ireland on their 30th Birthday. As a key lighting partner for over 10 years, BÄ.RO continues to provide modern energy efficient retail lighting solutions for the group, creating an ideal selling environment, helping to increase customer footfall and basket spend within the SuperValu and Centra stores. The internationally renowned retail lighting expert was proud to be appointed as the main lighting supplier for the latest SuperValu store design and format in Loughrea, County Galway. BÄ.RO took advantage of recent developments in both lamp and luminaire technology to create the ultimate shopping experience. BÄ.RO Lighting ROI T: +353 (0) 1296 2607 E: W:

BÄ.RO Lighting UK T: +44 (0) 161 777 9292 E: W:

TARA Happy 30th birthday from

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in the stores. We used this new brand proposition as the filter through which to look at our entire model – to make the stores even more innovative and instantly recognisable, with a distinct look and feel in a very crowded marketplace. It was all about delivering a superb offer, with a unique character and personality.” To deliver on this new direction, there has been a fundamental change in the Centra store design. Right through from layout to lighting, point-of-sale material to technology, the whole format has undergone significant change, all with the customer in mind. The design is bright and airy with high ceilings, large windows, eye-catching point of sale material and plenty of innovative features and services to capture passing trade. “Our stores are bright, airy and easy to use,” Morgan says. “Shoppers can get in and out and find exactly what they want really quickly. The clean lines and simple design allow us to communicate with shoppers in an uncluttered environment, ensuring we can highlight our excellent value for money offer and direct them easily to our key offers and promotions.” You need only look across the Centra estate to see how retailers have really bought into this new design concept. They are constantly revamping to ensure they incorporate this new design in their stores, even attracting global recognition. Indeed, just last month Ryan’s Centra in Raheen, Co. Limerick, made it to the final four in the International Insight Global Convenience Awards, an Awards scheme attracting entrants from across the world. “While market conditions are more challenging, Centra refuses to stand still,” Morgan explains. “The

brand has evolved over the last 30 years, alongside the ever-changing Irish consumer. It has significantly expanded its range of products and services to meet the needs of its consumers for both the good and the bad times and we will continue to rise to this challenge. “Chilled Distribution, the Musgrave buying power and the strength of the Centra brand provides Centra’s retail partners with an excellent platform for winning through this recession. Our ability to deliver on the value agenda to our shoppers on both branded and own brand products and the constant innovation in the Centra promotional offer, clearly demonstrates our leadership position and strength in the market.” Centra is not just a convenience store, Morgan insists. “Our stores stand out from the crowd for their friendly service, the range of quality own brand and established products on offer and store environments that deliver a convenient and enjoyable


shopping experience,” he notes. “We are a network of neighbourhood stores delivering excellent choice, service and above all, value. Our credentials speak for themselves: last year alone, over 365 Centra stores received the National Hygiene Award from Excellence Ireland, with Kilmartin’s N6 Centra, Athlone, winning the overall title of Ireland’s Cleanest Foodstore for the second year in a row.” The Centra brand has developed at an enormous rate over the past number of years, a fact that was recognised last year by IGD, who identified Centra as one of the Top Ten to watch in terms of leading the way in convenience retailing. “This accolade further demonstrates our innovation, growth and strength in the market,” concludes Morgan. “Going forward, Centra is set to continue to embrace the constantly changing marketplace and consumer and will continue to consolidate its position as Ireland’s number one convenience retailer.”

SuperValu From the Inside Two long-standing SuperValu retailers reflect on the changing grocery landscape and the strengths of the SuperValu brand.


years is a long time in retailing. The grocery landscape of 1979 was vastly different from the one we find ourselves in today, with growing pressure from the multiples heralding worrying times for the very survival of independent retailers. Thus 1979’s consolidation of the existing VG stores into the SuperValu network can, in hindsight, be heralded as a master-stroke on the part of Musgrave. Two of the retailers who have been part of the SuperValu network for the past three decades reflect on the changing grocery landscape, the strengths of the brand and talk us through their experiences. “I traded with Musgrave when there was no brand,” recalls Tomás Garvey, Chief Executive of the Garvey Group, who operates eight SuperValu and two Centra stores and has been part of the group since its inception. “The rep. came in and went through the whole list every month, from washing powder to baking powder: you’d place your order and get a monthly delivery.” The symbol group concept, he admits, was “something new, but we had confidence in Musgrave and they

Michael Twohig, SuperValu Kanturk, is pictured (centre) accepting a SuperValu Supreme Quality Award 2009 from Donal Horgan, SuperValu Managing Director. Also pictured is Margaret O’Shea, SuperValu Kanturk.

had no problem convincing me as a retailer to come under the umbrella of the brand. Obviously, the power of bringing together our combined strengths in terms of funding, promotion and creating the national brand was obvious, but it was this allied to the buying power that both ourselves and Musgrave brought to the table that made it really interesting.”

The Social Consequences Michael Twohig, owner of Twohig’s SuperValu, Kanturk, Co. Cork, and current SuperValu Council Chairman, sees the development of SuperValu as having wider social consequences: “SuperValu was prepared to give an offering in the rural community that, in those times, you would have expected only in larger towns and cities. We have always strived to constantly and consistently drive the standard within our stores and in our fresh food in particular. We give country towns an offering under one roof, from fruit and veg to the meat counter, the deli to the in-store bakery, that rivals anything the multiples can deliver.” 28

Michael’s own store was one of the first in the country to trial the group’s in-store bakery concept: “This was big news in a town like Kanturk at the time: you could now buy fresh bread, which was baked in the store, and you had the smell of fresh bread wafting around the store. That really stood out for me.”

Consistent Philosophy The intervening years have seen vast changes in grocery retailing, but the philosophy at the heart of both SuperValu and the Garvey Group hasn’t changed. “It was a very different business 30 years ago, but we have always kept our business family and community orientated. Tomás Garvey stresses. “What we are trying to do is to blend the SuperValu and the Garvey’s brand, to make a national brand local and a local brand national. “We have a very strong brand and the two together deliver excellent depth and strength that is hard for others to match. We are also lucky enough to be attached to a group that has the same buying power as the

individual retailers, businesses. We are always prepared at the end of the day, to give new, locally produced goods a but there is a great chance, to give them shelf-space and family feel to being part to promote them. Consumers appreof SuperValu. I don’t ciate getting local produce in local think the group would stores.” have grown in the way that it has without The Future the people who have Both retailers acknowledge today’s led the way from VG difficult trading environment, but into SuperValu: people with the experience and support of Tomás Garvey, pictured outside his original Dingle recognise the SuperValu Musgrave and the SuperValu brand, supermarket. brand for fresh food, high they remain confident that the group standards and for being will ride out the recession and emerge very price competitive – particularly stronger as a result. multinationals, which gives us the in recent months with the excellent “With the systems that Musgrave power to compete on price.” promotional offers.” has put in place, the constant While acknowledging that there Tomás Garvey mirrors these monitoring of price, waste and wages, have been many developments in the sentiments, insisting that “the it has put us on a very good footing Irish grocery retailing landscape over support levels are huge, because and I would not be overly afraid of the last 30 years, including dramatic consumer demands are high. You what is coming down the track,” changes in the standard of the have to be up there with the best states Michael Twohig. “We are well shops themselves; the levels of state retailers in the country and we prepared because we recognised in intervention in the sector; the advent wouldn’t be able to do that without good times the difficulties that were of central warehousing and chilled the support and the education coming our way and the ensuing delivery, Tomás Garvey insists that systems that Musgrave puts in changes in shopping habits. There the basic tenets remain the same. place in terms of hygiene courses, is always going to be room for local “Retail, like any other business, is management courses etc.” shops with local owners in the difficult if you don’t like it, but if you This interaction is a two-way communities, as long as they are like people and you like the business, street, however, with head office delivering the service, quality, choice you are half-way there. The hours are actively seeking the views of individual and value that people want. As long still long and unsociable, but you don’t retailers on new concepts and methods as we continue to do that, and make feel the day going if you love the job.” of delivery. “Musgrave recognises our stores convenient for people to and always has done that it is the shop in, we have little to fear.” Chilled Distribution people at the coal-face, the people “I’ve no doubt that the owner/ The development of chilled distribuwho are on the shop floor, that are in manager concept will win out,” tion was a major factor in SuperValu’s the front-line and who often see new concludes Tomás Garvey.” I can’t growth over the last decade, according ways of doing things,” Michael Twohig see any multiple taking a retailer to Michael Twohig. “Chilled distribustresses. “There is a sense of constant out of his own store, once he does tion meant that rural towns were now innovation in the group: we are always his job right: promoting the shop, able to get fresh products on a daily looking at ways of doing things better keeping the standards high in terms basis, which they may have only got in-store, from new computer systems of customer relations, and supporting once a month previously, from a passto scanning systems.” the people who work there at a local ing chill lorry. We now have stores level. In 30 years time, SuperValu that can compete with anything in the will still be there, stronger and better larger communities and that wouldn’t Locally Produced Goods than ever.” have happened without the forwardOne area where SuperValu really thinking that is central to Musgrave excels is in the and the SuperValu brand.” amount of locally proMichael also praises Musgrave duced goods on-shelf. “for involving retailers in their own While this is a policy destiny and being very much part of that is ingrained in every initiative in the stores, through the SuperValu way the Retailer Council and various of doing business, it forums they run, as well as through also extends to the regional cluster meetings, where individual retailowners and managers from different ers themselves, as regions meet four times a year. Michael explains: “We “As a retailer, you are constantly are local owners and Garvey’s SuperValu, Castleisland, Co. Kerry, meeting people within the group we have always been one of the nine Garvey’s SuperValu stores and winner of and sharing information. We are supportive of local SuperValu Store of the Year 2007.


RETAIL NEWS would like to congratulate SuperValu and Centra on 30 years at the forefront of Ireland’s retail sector.

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Centra – A Convenient Truth! Who better to comment on the continued growth of Centra than some of the retailers who have been with the group since the very beginning in 1979? Sheila Flood, one of the original Centra retailers, pictured with John, Breda and Mark Flood outside their store in Ramsgrange, Co. Wexford.


of the most enduring testaments to the longevity of the Centra brand is undoubtedly the fact that many of the retailers who first joined the group back in 1979 are still proud to be part of the Centra family today. Sheila Flood’s Centra in Ramsgrange, Co. Wexford, was one of the first independent stores to sign up to the new symbol group, with Sheila’s son John taking over the reins, as the second generation of Floods to be a Centra retail partner. “I suppose you could say I was a Centra baby,” laughs John today. One of the facets of the partnership with Centra which has remained consistent through its three decades is the level of approachability between retailers and head office, according to Sheila Flood. “The service was always very personal and still is to this day,” she notes. “If you rang somebody, you always got an answer, and it didn’t matter whether you were looking for [former CEO] Seamus Scally or somebody to drive a lorry. The level

of support has always been second to none, from the very start right up to now.” Sheila’s words are echoed by her son John. “Customer service, whether it’s the group with the retailer or the retailer with their customers, is a massive thing for Centra,” he explains, highlighting the “great family feel” to being part of the group, describing it as “professionalism within a family atmosphere. Every retailer feels part of the Musgrave family.”

Centra Council The Centra Council, made up of retailers from right across the country, is a valuable asset for members, who always feel they can access the latest information, trends and statistics, or have their queries answered in a timely fashion. “You can put a query to the group through your Council member, who will then raise it at a meeting, and you will always get a report back from the meeting,” John Flood notes. “You always feel that you’re in the loop. 31

“There are also a series of retailer forums where Musgrave invites retailers and the top managers from the group to not only talk through the plans for the coming year, but also to listen to what retailers tell them. They ask for feedback, which they take on board and act on.” This sense of belonging is not confined to the Floods alone. Every member of the Centra store network is treated as a valued member of the team. “There is a great relationship between the group and its retailers,” enthuses Pat O’Leary, another retailer who has been with Centra since the very beginning, with his store in Tower, Blarney, Co. Cork.

Fantastic Support Levels Highlighting the fantastic level of support and personal service he receives from head office, Pat stresses the professionalism of everyone involved in the Centra group. Five years ago, Pat increased the size of his Centra store considerably,

more than tripling his floor space and increasing staff numbers from 20 to 80. The store owner contends that it was the help and support he received from Centra that made such a massive transformation, not only possible. but seamless. “For someone who wasn’t used to delegating, the bigger store proved a huge challenge,” he admits. “In the older store, I was able to do everything myself, but when we moved to the bigger store format, we needed managers and assistant managers: otherwise, it wouldn’t work. That was a daunting thing for me, and Centra was there to support me through all of that.”

Embracing Change Embracing change has always been a fundamental part of the Centra armoury, a fact which its retailers are quick to point to, as one of the group’s greatest strengths. “Centra has grown to be a massive operation over the past 30 years”, says Pat O’Leary, “but the grocery trade has changed enormously over that time too and it is Musgrave and the brand, with the support of retailers like myself, that have ensured the brand has not only kept pace, but stays ahead of the market and the trends.” “There have been a lot of changes over the years and we have never been afraid to move forward,” notes Sheila Flood. “Musgrave has expanded the range, introduced

“Musgrave’s forward thinking on distribution is second to none anywhere in Europe. Their logistical side is phenomenal and their supply chain fantastic.”

Pat O’Leary outside his Centra store in Tower, Blarney, Co. Cork.

centralised distribution, central billing and all of these changes have ensured that us retailers can compete efficiently and effectively.”

Stellar Distribution Network John Flood is perfectly positioned to comment on Centra’s distribution network. Having worked in the area of transport and logistics before taking over the family grocery business, he is well placed to ascertain that “Musgrave’s forward thinking on distribution is second to none anywhere in Europe. Their logistical side is phenomenal and their supply chain fantastic. The level of innovation in what Musgrave has done, especially in areas like distribution, is hard to fathom until you look at other retailers across Europe.” Pat O’Leary agrees, “From an ordering point of view it’s great: you’re never out of stock and you have fresh stock in store all the time.” However, in today’s climate, it’s not just a case of having the right stock selection, and Centra understands all the aspects that go hand-in-hand with delivering a successful grocery offering to consumers. “It’s all about giving the customer good service and good value,” explains Pat. “Centra is very aware that you have to have good value offers throughout your store. You have to entice the customer in the best way you can. Musgrave are aware of that and is actively sourcing the best value for their retailers.” 32

“They are really driving the value and customer service message,” agrees John Flood. “Despite the fact that Centra is seen as a convenience retailer, it also delivers well on value. For a retailer, they are the only company who offer a one-stop shop for everything from training to development, sales to marketing – in fact everything associated with retailing.”

Vote of Confidence Perhaps the best vote of confidence in the group is the fact that so many of its retailers are still part of the Centra family three decades after joining. “Every couple of years, we will have other symbol groups approaching us, asking us if we want to move to their brand, but there’s no way we’d leave Centra,” admits John Flood. “They offer everything you want as a retailer. The difference is that Musgrave don’t just speak, they listen as well, which shows that they care. I have seen my opinions or a variation of my opinions being implemented across many initiatives. “My mother has been in the retail business probably longer than most people in the group and they aren’t afraid to learn from retailers like my mother. That’s a group that wants to learn and progress,” he concludes. “Centra has stood the test of time, has stood through recessions before and it will only get stronger, because the people at the heart of the Centra brand are working for the benefit of the wider Centra family.”




Page 1

Best wishes to SuperValu and Centra on your 30th birthday

Winning Partnership

Powerful Brands

SuperValu – Real Food Real People

Centra – For The Way We Live Today

30 Years of Success


Meenan’s News Rack

Hold the Front Page! Ireland’s newspaper market is worth a massive €490m per year. It is one of the most stable categories in your store and a guaranteed profit driver, and yet many retailers fail to understand the sector.


old joke goes ‘What is black and white and read all over? A newspaper’. I remember first hearing this when I was very young: little did I realise the impact this simple message would have on my career in the future. In Ireland, we love to read newspapers – fact. We buy more newspapers per capita than any other country in Europe – fact. As retailers, we have an opportunity to really capitalise on that fact – fact. And yet, if you ask any retailer, large or small, in Ireland today, which department of the business is the one that s/he feels most out of control and the area that is of biggest concern with regard to stock loss and wage cost, then invariably the finger points to the newsagency. So why is that?

Changing Times Other retail departments are suffering, most notably food-to-go and ready meals, and key departments such as grocery and off licence are only showing growth because both areas are heavily discounted and heavily advertised – making them very low margin areas of business. During the boom years, supermarkets, convenience stores, restaurants, sandwich shops and coffee docks were

springing up with great abandon and it seemed that every need was catered for in every small town and village and housing estate in Ireland. Now the new poor, who have lost their jobs or have bought property at the top of the market and are now facing negative equity, don’t have the income to support these new businesses and so almost as quickly as they opened, many have closed their doors. The last 18 months have been very tough for most Irish retailers – one of the scariest statistics was that 30 retail outlets had wound down every week for the first seven months of 2009 – that is almost 1,000 retail outlets (nail bars, coffee shops, convenience stores, tanning shops, beauty parlours, supermarkets and boutiques). If you estimate that five people lost a job for each closure, then there are now nearly 5,000 people without work directly as a result of retail closures. All of this is well documented, so what is the relevance to us as the retailers left standing?

un-solds for full credit when the retail day is over, ready for another delivery of fresh news in the morning. This area of your business is predictable, has no waste, does not rely on seasons or weather and does not need to be chilled, frozen, heated, probed or weighed. Newspapers just need to be counted each morning to ensure that you get the quantity stated on the delivery docket and then they need

The Benefits of Newspapers A newspaper is still a daily planned purchase – it is the freshest item for sale in your store. It arrives fresh each morning and you can return all

The Irish Independent is the largest daily paper, accounting for 22% of the daily market in volume but 27% in value. 21


Meenan’s News Rack

planning TV viewing. Let’s face it: more people are staying in to watch the plasma screens and in-home entertainment systems bought in the last decade which in the past everyone was too busy to watch!

The Facts The Irish newspaper market, based on the latest ABC audit (Jan- June 09), is estimated to be worth approx €490m. This breaks down into: Daily newspapers: 57% Evening newspapers: 7% Regional newspapers: 11% Sunday newspapers: 25%

The Sunday Independent is the largest Sunday paper, accounting for 22% in volume terms.

to be made available for sale. At the end of the day, the newspapers that didn’t sell need to be parcelled up and returned to the correct supplier with an old delivery note to show the supplier your account number and bar code and left in a secure bin so you get full credit on the next invoice. Simple! But if it really is that simple, why do so many retailers talk about ‘losing their shirt’ on the newsagency and referring to this department as a ‘nightmare’? We’ll talk more about this later.

Newspaper Sales Up The good news is that newspapers are selling in greater numbers than before. Some retailers say that in a recession or an economic downturn, people turn to more serious newspapers to try to make sense of what is happening to the local and global economy – for example, The Economist is have a bumper year: ‘serious news for serious times’. Other retailers say that people who are now unemployed or working a three-day week have more time on their hands so the investment of a couple of euro each day on a newspaper is a small price to pay for a number of hours reading, completing crosswords and sudoko puzzles and 22

evening, however, losing the 5% of sales which are estimated to be generated the next day. Space is an issue in all stores, but it is worth chasing every sale these days, so alternatives such as a newspaper tower or an extra wide plinth are solutions to the space problem. Independent Newspapers have just launched another book promotion, based on Disney characters, and initial feedback has been excellent. Collector schemes have limited success with adults, but children love to collect and at €4.99 per book, this adds an extra fiver into your till with a newspaper purchase. Retailers should only sell the book with the Irish Independent: why not get €6.99 or €6.79 through your till rather than €4.99. In terms of additional revenue for retailers, Independent Newspapers expect to sell over 30,000 books a week for 19 weeks, which works out an average of 10 books a week per retailer or €49.90 a week, which equates to nearly €950 in additional revenue for retailers over the course of the promotion, based on approx 3,000 retailers (nearly 70% of all retailers in ROI) taking part. The first book, Donald Gulliver’s Travels was given out free of charge (worth €4.99) on Saturday September 26, and free children’s books are very well received in any climate – particularly in September when money is tight after a painful back to school experience. These books are given to retailers on a fully sale-or-return basis, so once you know what you are doing, you can operate this income generator on a weekly (this promo-

Within this break-down, how is each category performing and what does each title accounts for in that category (volume or value based)? The Irish Independent is the largest daily paper, accounting for 22% of the daily market in volume but 27% in value, and was the best performing daily title in the latest ABC audit (-4.489% versus -6.57% for the total daily market). The Sunday Independent is the largest Sunday paper, accounting for 22% in volume. The Sunday Times increased its circulation by over 10% to 116,541 copies in the last survey, making this the fastest growing title in the Irish marketplace. Supplements in this and other newspapers continue to drive the sales of newspaper titles. The Irish Sun continues to be the best selling daily tabloid newspaper in Ireland, selling 96,725 copies every day. The News of the World has achieved a circulation figure of 134,461 copies. The Irish Times has repositioned itself as a Saturday/Sunday newspaper, offering more supplements, and has encouraged retailers to keep the newspaper on display for two full days for return on Monday. Most retailers still take Independent Newspapers have just launched another book the newspaper off promotion, based on Disney characters, which is proving sale on Saturday extremely popular with consumers.

WHO GENERATES over €10 million profit annually to the retail sector in Ireland? With an Average daily sale of 114,488 ABC Jun - July 09 and 364,000 daily readers, an increase in readership of 14.8% JNRS.

THE IRISH TIMES t Property Residential t Business This Week t Motors t Sports t Health Plus t Go Magazine t Weekend Review t The Ticket t The Irish Times Magazine


Meenan’s News Rack

tion lasts for 20 weeks) basis with no loss. So why are so many retailers in Ireland refusing to stock them? Or what is the reason for retailers being so nervous dealing with the newsagency returns?

Understanding the Newsagency Process The problem seems to be that many retailers don’t fully understand the newsagency process, and more importantly, don’t understand that returns have to be completed every day and returned to the correct supplier on time in order to receive full credit – and therein lies the problem. If the retailer doesn’t fully understand the process, then the person managing the newsagency is at a loss when things go wrong and credits are rejected and codes appear on the credit advice note – all indicating lost margin. A new development which is very welcome is the launch of the Code of Practice for the Publishers Press Association (COPPI). This Joint Industry Committee (JIC), the first of its kind in this industry, hopes to create a strong, cohesive relationship between retailers, wholesalers and publishers that will ensure the workings of the industry can be carried out more efficiently and with sig-

The Irish Times has re-positioned itself as a Saturday/Sunday newspaper, offering more supplements. 24

A new development which is very welcome is the launch of the Code of Practice for the Publishers Press Association (COPPI).

nificant environmental benefits. The JIC includes the following groups:

Convenience Stores & Newsagents Association (CSNA), EM News Distribution Ltd, Magazines Ireland, Newspread Ltd, the National Federation of Retail Newsagents (NFRN), National Newspapers of Ireland (NNI), the Newspaper Publishers Association (NPA), the Retail Grocery Dairy & Allied Trades Association (RGDATA) and the Regional Newspapers and Printers Association of Ireland (RNPAI). JIC was launched in November, 2008, with a mandate to address and find solutions for a range of industry issues via self-regulation, rather than statutory intervention. Through discussion and co-operation, JIC hopes to create a strong, cohesive relationship between retailers, wholesalers and publishers that will ensure the workings of the industry can be carried out more efficiently – and with significant environmental benefits.

The Daily Profit Helping You to Manage Your Newsagency

W h e re Re t a i l e rs Make More Profit

THE Daily Profit is a new business launched in January 2009 which takes the pain and frustration out of managing the newsagency department. Founded originally with just one retailer who had two shops, the Daily Profit grew by word of mouth to over 100 shops and 14 people working in this business in just nine months. There are only two objectives at the core of its business model 1. Stop Losing Money 2. Make Some More The Daily Profit works very closely with retailers, wholesalers and publishers, troubleshooting and acting as a buffer between retailer and supplier. The Daily Profit becomes a third party that manages the standing order for the retailer, ensuring that the right supply and the right range of titles for that particular store is kept so that the retailer can build sales, reduce losses and reduce wage costs. The retailer has to take a leap from being a shop that sells magazines to a destination newsagent to achieve all those extra sales. Darren Brack, owner of Centra Rathmines, took that leap six months ago and this is what he has to say about the service: “I have found The Daily Profit to be a huge benefit to my overall store operation. Since going with them almost six months ago, the results are clear. My losses have stopped in the department. My sales are up on news & magazines 25% year-on-year. I have now become a destination shop for magazines, hence increasing sales in other departments too. Finally, but very importantly, my staff members have a simple system to work to, which they and I clearly understand, unlike before. I would urge any retailer considering it to go with The Daily Profit because quite simply they will, in conjunction with your staff, prevent any significant losses in this tricky dept.” Contact: Karen Meenan, The Daily Profit, 3 Warrenhouse Road, Baldoyle, Dublin 13. Tel: 086 60672211. Email:






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MACE Makes Its Mark Sarah and Tony Butler’s redeveloped MACE forecourt in Clonard, Co. Wexford, is already reaping dividends for two of the newest retailers to join the MACE group.


and Tony Butler recently took the decision to change their symbol group partner to MACE and then to invest significantly in rebuilding their forecourt in Clonard, a suburb of Wexford Town. This investment may have seemed risky given the current economic climate, but the rebuild is already reaping serious dividends for the couple. The slow-down in the economy is nationwide, but it is not so easy to spot in Wexford. The town has a new KFC, its first ever McDonald’s and opposite the Butlers’ MACE forecourt, there is a brand new retail park with most units filled and a large residential complex with surprisingly few vacancies. So while the redevelopment of the forecourt meant a significant investment, it has proved an extremely shrewd move. Even in these challenging times, their business is prospering thanks to the quality of their shop and very strong support from their symbol group partner, MACE.

Latest MACE Image Sarah and Tony have been involved in grocery retail for their entire working lives: indeed, Sarah’s family ran the forecourt shop before the pair took control of the forecourt in August, 2008. The couple already ran a MACE shop in the centre of Wexford town and enjoyed a good working relationship with the group, so they were keen to get the MACE brand into their forecourt, while the group was equally keen to work with two retailers of their calibre. The couple thought long and hard before embarking on the project to completely redesign the existing forecourt, as the economy was already struggling in August of last year. “When we took over the forecourt, we knew we wanted to work with MACE. We looked at a number of shops with the latest MACE image and we were very impressed,” notes Tony. “Although it meant a significant investment to upgrade the existing shop, we knew there was already


Pictured outside the Clonard forecourt are (l-r): Philip O’Brien, MACE Retail Advisor, with store owners Sarah & Tony Butler.

a solid customer base so we felt it was an investment that was worth making. We worked very closely with the Group when it came to designing our shop and deciding which elements would best suit us.”

Complete Transformation In May of this year, structural work was completed and a four week fit-out was undertaken to install the latest MACE concept. The interior was completely transformed, not only in terms of the look but also by the introduction of a number of key new elements, including a sumptuous seating area, the Perk coffee range, a greatly expanded deli that offers the exclusive Fresco sandwich portfolio and a HB Swirl It element, fully integrated into the till area. The



Strong Value Focus

introduction of large swathes of glass at the front of the forecourt has brought significant amounts of natural light to the interior, which are accented by the expert lighting scheme created as part of MACE’s latest concept. The Perk coffee unit is exclusive to MACE shops and not only provides great coffee but is designed to be user-friendly and provides an excellent display for the tasty treats, to help improve the margin on the tea and coffee offering. In terms of the flow of the shop, the coffee element directs customers towards the new and improved deli. The Fresco sandwich range of hot and cold sandwiches, unique to MACE, have proven particularly popular since the new shop opened. “The hot sandwiches in the Fresco range have been selling very well for us, particularly on the duller days during the summer and we hope sales will get even stronger in the cold winter months,” enthuses Sarah. “We noticed a small increase in sales at the deli after the rebuild and we have managed to sustain those levels. I think an important part of maintaining our deli sales was the introduction of our seating area. We chose more expensive seats and stools to make the area very comfortable and it has paid dividends, as we see customers coming back to relax with their coffee or their sandwiches.” The HB Swirl It ice cream concept has also proved a winner with consumers. “It was another significant investment but it has been incredibly popular,” notes Tony. “During the summer, we had kids coming from miles around and sales were so high, we had to assign a member of staff just to operate the unit. It provides a very good margin and has been a very strong draw for kids and families alike.”

While the new offerings in the shop have helped maintain margins and volume, the strong value focus from the MACE group has also played a big part in the Butlers’ success. “MACE has been working hard to deliver value offerings to all shops in the group. Irish consumers are insisting on good value purchases and we have to make sure MACE shops can offer a competitively priced basket of goods,” explains Phillip O’Brien, MACE Retail Operations Advisor. “We offer 13 promotional cycles each year so that MACE shops can offer big name brands at great prices. We have also invested heavily in our MACE own brand offering. MACE brand products now include a wide range, from milk to pasta to biscuits, and the MACE brand water, in particular, has proven to be extremely successful. Any stigma that might have been attached to buying own brand goods has long since disappeared and people are now keen to get their hands on low cost alternatives, once the quality is acceptable.”

Sarah and Tony are also ensuring their customers realise the shop can offer good value for money. “We have been working hard to promote value offers in the shop, with shelf-ends and along the aisles,” Tony stresses. “One concern we had about the rebuild was that customers would see how good the shop looked and assume it was expensive. But we have actually been very successful at communicating the value for money we can offer. We always publicise promotional cycles in the local paper and all our staff point out value offers and we use the strong POS material provided by MACE to make sure everyone coming in to the shop can find good value for money.” There is no doubt that retailers have to work hard in the current economic climate to keep their businesses successful. Sarah and Tony Butler are proof positive that even shops that have invested heavily in the Fact File last year can still Owner: Sarah & Tony Butler realise a return on Location: Clonard, that investment County Wexford through hard Size: 2,500 square feet retail space work and dediNumber of cation and the Staff: 18, full time & part time support of a strong Opening symbol group parthours: 07:00-22:30, Monday-Sunday ner like MACE. 27



OTC Market Shows No Slowdown The market for over-the-counter medicines and vitamin/mineral supplements shows no signs of slowing down, despite the recession.


the majority of consumer markets have been negatively affected by Ireland’s economic slowdown, this development has had less of an impact on the overall Irish OTC market, according to the latest report from Euromonitor International. Many of these products (such as analgesics, digestive remedies, medicated skin care, and cough, cold and allergy medicines) are viewed as necessary purchases and have become relatively immune to changes in the wider economy. In some respects, the reduced disposable income from Ireland’s recession has actually helped the growth of some sectors. With the cost of seeing a doctor in Ireland averaging €60, many more consumers have chosen to selfmedicate or seek the free advice of a pharmacist. This holds especially true for cold medicines, digestive remedies and medicated skin care used in the treatment of more minor ailments. As a result of the growing importance and popularity of self-


Tramil, from Wyeth, continues to remain hugely popular with Irish consumers who need fast pain relief that’s easy to swallow.

medication, spending on OTC drugs is rising. The trend towards selfmedication will continue to grow in strength over coming years, especially as economic concerns urge consumers to save money on visits to doctors by consulting pharmacists instead. The widening spread of access to the Internet means more consumers will use on-line resources to research their ailments, self-medicate and adapt their lifestyles in accordance with the latest research. According to Euromonitor, by the end of 2008, nine of the top 10 players in the market were multinationals, with the top three controlling nearly half of the Irish OTC market. The sentimental attachment to local brands among Irish consumers has finally been severed, making way for large companies with large brands to fill Irish consumers’ medicine cabinets.

on the Irish market, Tramil can be used to effectively treat headache, period and dental pain. Due to its paracetamol-based formulation, it is also very effective in relieving the symptoms of colds and ‘flu.

Centrum Also from Wyeth, Centrum is the world’s number one selling multivitamin and mineral supplement. In Ireland, three variants are available, providing supplements specifically tailored to the under 10’s, adults and the over 50’s. Centrum is supported by significant TV and radio advertising throughout the key autumn and winter periods to maintain high levels of brand awareness and drive sales. With its unique packaging and category leading status, Centrum is a beacon brand and a requirement for

Tramil Tramil, from Wyeth, continues to remain hugely popular with Irish consumers who need fast pain relief that’s easy to swallow. Packed in premium silver foil packs to generate on-shelf standout, Tramil is available Centrum, the world’s number one selling multivitamin in packs of 10 capsules. and mineral supplement, is available in Ireland in three Available for over 20 years variants, for the under 10’s, adults and the over 50’s.



For the choice and range your customers want


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any VMS section, particularly going into the winter months.

Rennie Dual Action Rennie, the market leader in the antacid category across all grocery channels in terms of value and volume (Source: ACNielsen MAT, August 2009) from Bayer Ltd, has just launched its most innovative and powerful tablet yet, Rennie Dual Action. The powerful new formula in Rennie Dual Action works on forming a protective barrier over the stomach to stop excess acid escaping upwards which causes that pain in the chest area. It then works fast to neutralize the excess acid in the stomach, relieving symptoms in just two minutes. This rapid relief is key, given that heartburn is becoming more common, possibly as a result of increased stress, unhealthy diets or over-eating. People today tend to rush from one task to the next. This has been exacerbated by the current economic situation, with employees feeling more pressure, working longer hours, eating at their desk and not taking time to relax. Rennie Dual Action’s convenient packs of tasty, chewable tablets make them easy to pop into a pocket or handbag and can be taken discreetly wherever consumers are. The launch of Rennie Dual Action has been complemented by strong advertising. The Rennie Brand Manager is proud to note that the Rennie Dual Action TV commercial

is a 100% Irish production, having been created, filmed, directed and produced in Dublin. The heavyweight TV campaign is also being supported by a massive outdoor, multiformat advertising campaign, which will run throughout the remainder of 2009. Rennie Dual Action is now available in all stores nationwide in packs of 12 and 24.

This autumn sees the relaunch of Active 55 in new look modern packaging and the introduction of two new lines, Active 55 Boost and Heart, which will extend the appeal of the brand beyond just joint health to address other health needs.

Panadol Advance GlaxoSmithKline has launched a new addition to its Panadol portfolio: Panadol Advance is a new advanced formulation of paracetamol that disperses in the stomach up to five times

Panadol Advance is a new advanced formulation of paracetamol that disperses in the stomach up to five times faster than standard paracetamol tablets.

New Rennie Dual Action’s convenient packs of tasty, chewable tablets make them easy to pop into a pocket or handbag and can be taken discreetly wherever consumers are. 30

faster than standard paracetamol tablets. Panadol remains Ireland’s number one selling analgesic brand in grocery. Panadol Advance 500mg tablets are available in handy Compack packs of 12 tablets from grocery outlets nationwide.

Seven Seas The Vitamins, Minerals & Supplements (VMS) market in

grocery is valued at €9.7m, -4% yearon-year, and Seven Seas remains the number one vitamin brand in Ireland, claiming a 48% share of the market (Source: ACNielsen, MAT, July 09). The over 50’s sector has emerged as one of the fastest growing subsectors within the category. This growth has been driven by Seven Seas’ Active 55 brand, the leader in joint health and mobility. This autumn sees the relaunch of Active 55 in new look modern packaging and the introduction of two new lines, Active 55 Boost and Heart, which will extend the appeal of the brand beyond just joint health to address other health needs. The brand is will be supported with a major marketing campaign, which includes TV, press and outdoor advertising and PR activities, all designed to ensure that Active 55 is in much demand over the coming months. Multivitamins and Cod Liver Oil are the two biggest sub-sectors within the market, with 59% share. Seven Seas Cod Liver Oil is a tried and trusted brand with a strong heritage and acts very much as a beacon for the category. In multivitamins, Seven Seas Multibionta is a major player: it has a unique 3-in-1 formula of vitamins, minerals and probiotics, which protects those with busy, hectic lifestyles from common illness. The Multibionta range also includes Multibionta Activate and Multibionta Immune.


Wines of Chile Revamp Website THE new Wines of Chile website is now live at This is an invaluable resource for trade, press and consumer to learn more about Chilean wine. The new site offers graphically-enhanced features and is easy to navigate. One of the highlights of the new site is a beautiful five-minute video, ‘Wines of Chile – The Natural Choice’, containing breathtaking images that highlight the unique, natural diversity of Chile and its climates. Wines of Chile’s 76 member wineries belong to Vinos de Chile and represent 85% of Chile’s bottled wine exports. On the international stage, Chilean wines are also starting to achieve enormous recognition. At the 2009 Decanter World Wine Awards held in London recently, Chile’s performance was nothing short of brilliant. Not only did Chilean producers amass some 370 awards, they also brought home outstanding International and Regional awards for what Decanter’s Adam Lechmere called “some of the finest Sauvignon, Riesling, Pinot Noir and Cabernet blends in the world”. Decanter World Award International Trophies went to: Riesling under £10: Cono Sur Reserva Riesling 2008 (Findlater Wine & Spirit Co.). Pinot Noir under £10: The Co-op Santa Helena Pinot Noir 2008 (SPAR). Sauvignon Blanc over £10: Undurraga T.H. Sauvignon Blanc Lo Abarca 2008 (Comans Wines). Red Bordeaux Varietal under £10: Viña Indomita Reserva Cabernet Sauvignon 2007 (United Wine Merchants).

Coman’s Launch Premium Chilean Range

COMAN’S Wines are launching a new wine range of premium wines which celebrates this strong link between Ireland and Chile. The current Chilean Ambassador, H.E. Cecilia McKenna, is also a direct descendant of the famous Juan McKenna, a hero of the Chilean war of independence. Chile will celebrate its bicentenary in 2010. The Undurraga wine family is proud to have Juan McKenna as one of its direct ancestors. With their Irish distributors, Comans, Undurraga has now produced a range of premium wines to celebrate the life and times of a true Chilean patriot. The McKenna Collection is a range of wines that celebrates the life of Juan McKenna and his association with the Undurraga family. The labels carry a portrait of Juan McKenna, complete with military uniform, just below the words, ‘Chilean Wine - Irish Heritage’. Initially The McKenna Collection is available as both a Cabernet Sauvignon and a Sauvignon Blanc. Chilean wines have been instrumental in fashioning the modern wine trade in Ireland. Undurraga has been at the heart of this transformation.

the Vine

Ampersand to Distribute Delicato DELICATO Family Vineyards from California have announced that their wines are to be distributed by Ampersand here in Ireland. Delicato Family Vineyards is a family-owned winery committed to its 85 year California winemaking and winegrowing heritage. Three generations of the Indelicato family have overseen vineyard operations and winemaking at their California properties and today the company is led by CEO and President, Chris Indelicato. Delicato Family Vineyards is committed to crafting and representing wines of the highest quality, produced in accordance with sustainable winegrowing practices in their Lodi and Monterey vineyards

NOffLA Gold Star Awards THE NOffLA Gold Star Awards 2009 Collection is a selection of wines especially chosen by wine experts in the National Off-Licence Association and independent wine writers, John Wilson and Tomás Clancy, which will be exclusively marketed by off-licences which are members of the Association.

The Award categories under which Gold Star accreditation is awarded are: Old World (Red and White) Under €8 retail: B&G Fleur de Vigne Ugni Blanc Colombard 2007; Canti Negroamaro/Zinfandel 2008. Under €14 retail: Cave de St Dezery, Viognier 2007; Campo Viejo Reserva 2005. Under €20 retail: Michel Redde Pouilly Fumé AC Petit Fumé; Museum Real Reserva 2003. New World (Red and White) Under €8 retail: Antares Sauvignon Blanc 2009; GatoNegro Cabernet Sauvignon 2008. Under €14 retail: Wakefield Estate Clare Valley Riesling 2008; Secreto Carménere 2008. Under €20 retail: Penfolds Koonunga Hill Autumn Riesling 2008; Montes Alpha Merlot 2006. Rosé Under €15 retail: Marchesini Pinot Grigio Rosé 2008. Sparkling/Champagne Under €25 retail: Pere Ventura Cava Rosat Semi Sec NV. Under €50 retail: GH Mumm NV. See next month’s Retail News for a full report on the NOffLA Gold Star Award Winners.




Barry Group Increases Profit At their Annual Conference, The Barry Group have reported an increase of sales to €212.5m, while overall group profit before tax rose to €2.67m.


was a tangible sense of optimism among retailers at the Annual Costcutter Conference held recently at Dunboyne Castle, Co. Meath. “There are always opportunities within a market, even one as difficult as this one,” said Jim Barry, Managing Director, Barry Group. “By focusing on improved customer experience and continuing to offer quality grocery products at competitive prices, I am very confident that the Costcutter symbol group is well positioned to

Jim Barry, Managing Director of the Barry Group, is pictured presenting the 2009 Supermarket Store of the Year Award to owners of Costcutter Ballybofey, Michael Doherty, George and Susan Doherty and Store Manager, Wayne Johnston.

successfully navigate through these challenging times.” Speaking to more than 200 delegates at the Conference, which was themed ‘Adapting To A New Retail Environment’, Jim Barry delivered an upbeat assessment of the current marketplace and outlined the support and initiatives provided by the Barry Group to its retailers in the current economic climate.

Sales Increase Also announced at the Conference, the Barry Group reported an increase

Michael Doherty, owner of Costcutter Carndonagh in Donegal, accepts the 2009 Costcutter Off Licence of the Year Award from Jim Barry, Managing Director of the Barry Group, 32

of sales to €212.5m in the financial year to January 31, 2009, up 4% on 2008, while overall group profit before tax rose to €2.67m. “We are delighted once more to announce an increase in both turnover and profit before tax in this period,” noted Jim Barry. “This progress has been achieved through the continuing execution of our retail strategy which focuses on growth and customer experience, as well as our ability to offer grocery product at competitive prices to our customers. This is reflected in

Liz and Martin Murphy, owners of Costcutter Mayfield in Cork, are pictured receiving the 2009 Costcutter Express Store of the Year Award from Jim Barry, Managing Director of the Barry Group.


our results which show that overall group profit before tax has risen from €2.5m in 2008 to €2.67m in 2009 in what has been a very difficult trading environment. Despite current challenging market conditions, the Board of the Barry Group is confident that we are well positioned to build on our success in the coming years through our ability to offer value to our customers.” The principal activities of the Barry Group are the operation of a retail grocery franchise and the wholesale supply of grocery products. The company supplies product to over 700 stores including 230 affiliated stores in the Republic of Ireland operating under the Costcutter and Quikpick brands.


Costcutter Store of the Year Awards In recognition of the hard work and commercial achievements of Costcutter franchisees last year, the Costcutter Store of the Year 2009 awards were announced at a Gala Banquet at the end of the Conference. Jim Barry, Managing Director of the Barry Group, Costcutter Ballybofey, Co. presents the 2009 Costcutter Foodmarket Store of Donegal, was named the the Year Award to Sue and Matt Kearney, owners Costcutter Supermarket of Costcutter Grenagh, County Cork. Store of the Year, while Foodmarket Store of the Year title, Costcutter Mayfield, Co. Cork, was and Costcutter Carndonagh, Co. named Costcutter Express Store Donegal, was named Costcutter Off of the Year; Costcutter Grenagh, Licence of the Year. Co. Cork, lifted the Costcutter

Nationwide Expansion Planned for Buy Lo


Barry Group officially launched the Buy Lo store in Tralee recently and announced the roll-out of additional Buy Lo stores before Christmas. Opened on August 7 as a test pilot for the Buy Lo concept, the Tralee store has enjoyed a hugely successful trial period and exceeded expectations for both footfall and sales. The Buy Lo discount warehouse concept is the first of its kind in Ireland, offering household name brands of food and non-food items at discounted prices. Jim Barry, Barry Group Managing Director, said the success of Buy Lo in Tralee had spurred the nationwide roll-out of the Buy Lo

Pictured at the official launch of the Tralee Buy Lo store are Tralee Celtic soccer team receiving their kit from Tom Doona, manager, Buy Lo.

brand. “We aim to have more Buy Lo stores open in Ireland before the end of 2009,” he noted. “We’re working with franchisees on contracts and hope to be able to give more details later this month. “Now more than ever, consumers are value focused,” Barry continued. “We’re confident that this new approach to retailing in Ireland will give consumers quality

branded products at the value that they have been looking for.” The Buy Lo store differs from traditional retailers by offering large amounts of product at deeply discounted prices. Buy Lo Tralee Store Manager Tim Doona said that the reaction of people in Tralee had been fantastic: “The reaction has been hugely positive from our customers and we now have a loyal base, with people coming to Buy Lo as part of their weekly shop. The great value on fruit, veg and meat has gone down a treat, while well recognised brands of cleaning products, soft drinks, biscuits, sweets and pet foods are among our most popular lines.” 33


Soup Stars Ireland’s €53.1m soup market looks set to ride out the recession, thanks to new product development, allied to its convenience and health characteristics.

Knorr Special Recipe is launching an organic pouch soup range in three flavours: Creamy Tomato, Creamy Mushroom and Vegetable.

keeping consumer interest high in this dynamic category.



Irish soup market is valued at €53.1m per annum and has shown strong, sustained growth since the turn of the century, which looks likely to continue, despite the recession. After years of continued growth, with an average increase of 4.9% between 2002 and 2007, it is unclear exactly how the current economic downturn will affect the soup sector, although Irish consumers’ continued desire for healthy and convenient products bodes well for the category, which ticks both boxes across its five main categories: dried soup, canned soup, chilled soup, frozen soup and UHT soup. The development of premium soup varieties, in particular, has fuelled market growth, with consumers increasingly opting for new varieties, including soups with an ethnic or spicy twist. Manufacturers are responding to changing consumer tastes with continuous development of new, exciting flavours, which is 34

Claiming an overall share of the soup market of 37.2%, Knorr is proud to be the number one brand in this market. Knorr operates within the packet, instant and wet ambient soup markets and is market leader in both packet and instant soup, claiming a market share leadership of 80.4% in the packet sector and 61% in the instant sector (Source: ACNielsen Extended Scantrack, MAT to August 9, 2009).

Knorr Special Recipe Soup claims 43% of the pouch soup market and is driving innovation in this sub category this autumn with the launch of an organic pouch soup range. The Organic soup range will have three flavours: Creamy Tomato, Creamy Mushroom and Vegetable. This autumn with is a very busy time for Knorr. To build on a successful year to-date despite the economic climate, they will launch a new €1m above-the-line campaign in October, including two new TV commercials, press, PR and a new

The ever-popular Knorr brand, a firm favourite with Irish consumers.


Knorr Special Recipe Soup is driving innovation across the soups market.

website, all to encourage consumers to enjoy more meals together, more often and to try Knorr Packet Soup as an ingredient in everyday meals.


Vegetable and Beef and Vegetable. Heinz remains ever-responsive to consumer demands for healthy and convenient products that do not compromise on taste. Weight Watchers from Heinz, the number one healthy eating soup brand, continues to offer favourites such as Chicken Noodle and new varieties such as Tuscan Minestrone and Tomato & Basil. All Weight Watchers from Heinz varieties exclusively carry the Weight Watchers points value on-pack.

County Kilkenny. Launched in 1991, it is the original fresh soup in Ireland and in August became a member of the new independent food organisation, Love Irish Food. The organisation was established to promote Irish manufactured food and drink brands to consumers in an effort to safeguard the future of Ireland’s largest indigenous industry. The Love Irish Food logo will appear on Avonmore Fresh Soup packs over the coming weeks and months, highlighting the home grown credentials of this Irish favourite, Avonmore Fresh Soup commands 61.9% (volume) share of the total fresh soup category (Source: MAT August 2009). Avonmore Fresh Soup offers quality of ingredients and outstanding taste with an Irish stamp of approval. The brand has successfully driven the category and will continue to do so in the future through strong product innovation meeting Irish consumers’ needs.

The Heinz and Weight Watchers from Heinz soup ranges have long proven to be firm favourites with Irish consumers. Heinz remains ever-relevant to its consumers though continual investment in its soup portfolio to drive incremental sales and satisfy consumer tastes and needs, such as eating on-the-go, health and putting the pleasure Avonmore Fresh Soup back in soup. Avonmore Fresh Soup has always The Heinz been the nation’s favourite! As we Classics range head into the winter months, the remains a range offers a wholesome, warming firm family and tasty food solution in a convenfavourite, with ient, microwaveable format. Providing classic recipes Irish consumers with the taste of such as Cream homemade without any of the hassle, of Tomato it is available in eight delicious reciand Cream pes and in three different pack sizes. of Chicken Avonmore Fresh Soup also has a dediremaining as cated low fat offering for the health popular as conscious consumer. ever. A true Irish brand, Avonmore The Heinz Classics Heinz Fresh Soup range remains a firm Farmers range is family favourite, Market, made with classic recipes such as Cream of in a larger in the Cully & Sully are launching a new Tomato remaining 515g can, heart of range of Hotpots, which come in 400g as popular as ever. offers pots and can be eaten from the pot a range of varieties, including after just four and a half minutes in the microwave. Chicken & Country Vegetable and Plum Tomato & Basil. Each variety in the premium quality Cully & Sully range is made with selected From Cully & Sully, the makers of ingredients and inspired by an award-winning range of soup farmers’ markets. and pies, comes a new range of Heinz Big Soup is a range Hotpots. Flavours include Irish of hearty, chunky soups which Stew, Beef Stew, Chicken Curry are ideal for a sustaining lunch and Chicken Casserole, which come or for a light dinner, offering an in 400g pots and can be eaten Avonmore Fresh Soup offers a wholesome, extensive range of traditional from the pot after just four and a warming and tasty food solution in a convenient, varieties, including Chicken & half minutes in the microwave. microwaveable format. 35


“Based on extensive consumer research, we have optimised products, ranges and packaging to reflect customer preferences,” explains Baxters Brand Manager, Elaine Tewnion. “As the number one premium soup brand, we need to ensure that we consistently offer the best tasting soups to reinforce Baxters’ superior taste delivery.” Cully & Sully’s new range of Hotpots are a completely The soup re-launch new concept, and are both tasty and filling. aims to add incremental value to the ambient soup market, where Baxter’s claims Cully & Sully’s new range of leadership of the premium ambient Hotpots are a completely new concept. soup category. The September They are both tasty and filling and re-launch is designed to drive use all Irish protein and dairy. additional growth as the winter/soup Vegetable origins vary according to season approaches. seasonality. As with all Baxters products, They are designed to be reheated the new and improved recipes were in a microwave and eaten out of the developed by Audrey Baxter, the pot, with the cardboard outer sleeve great-granddaughter of George stopping consumers’ fingers being Baxter, who founded the famous burnt! Alternatively, they can be Scottish brand in 1868. heated in a saucepan. The re-launch will see 11 new recipes added to the Baxters soup Baxters range, including Chunky Carrot, Baxters has announced plans to reButterbean & Coriander, Lamb launch its entire soup range. Several

The new Baxters soup range includes Turkey Broth in the Baxters Favourites range, with improved recipes for Cream of Chicken, Pea & Ham, Potato & Leek, Red Lentil & Vegetable, Cock-a-Leekie, Lentil & Bacon and French Onion. The Baxters Healty range sees improved recipes for Autumn Vegetable with Mild Spices, Lentil & Vegetable, Minestrone with Wholemeal Pasta. New additions to the Baxters Chunky range include Chunky Carrot, Butterbean & Coriander; Lamb Casserole; Chicken & Vegetable Casserole; Country Vegetable and Smoked Bacon & Three Bean. The Baxters Luxury range also sees some new additions, in the shape of Highland Game, Courgette & Gruyère, and Oxtail with Red Wine, while there are improved recipes for Cream of Asparagus, Mushroom Potage, Broccoli, Stilton & Bacon, Lobster Bisque and Beef Consommé. Finally, the Baxters Deli range has two new additions: Red Lentil Dahl with Beechwood Smoked Ham, and Aromatic Chicken & Thai Herb.

Soup-er Facts - The Irish soup market is worth €53.1 per annum. - The soup market in Ireland increased by an average of 4.9% per annum between 2002 and 2007.

Baxters is relaunching its entire soup range, with several new and improved recipes, supported by fresh new-look packaging and a national advertising campaign.

new and improved recipes were unveiled in September, supported by fresh new-look packaging and a national advertising campaign. Baxters is looking to satisfy increasing demand from consumers seeking tastier and more sophisticated soups. Packaging across the portfolio has also been refreshed to support the re-launch, with clearer labelling and a more distinctive and premium look. 36

Casserole, Chicken & Vegetable Casserole, Country Vegetable, Smoked Bacon & Three Bean, Turkey Broth, Highland Game, Courgette & Gruyère, Oxtail with Red Wine, Aromatic Chicken & Thai Herbs and Red Lentil Dahl with Beechwood Smoked Ham – as well as 15 improved recipes across the portfolio. All soups in the new range will be free from artificial colours and flavours and comply with current FSA salt targets.

- The soup market can be split into five main sectors: canned soup, dried soup, chilled soup, frozen soup and UHT soup. - The market has been primarily driven by a consistent number of new product developments and packaging innovations. - Market drivers such as convenience and health will continue to produce lucrative sales opportunities for those segments that react to a changing marketplace.

WIN A SUPERSER HEATER FROM Now the exclusive distributor of Superser heaters in Ireland! The ‘Super’ big news this Autumn and Winter is that Flogas has now become the exclusive distributor for Superser mobile heaters in Ireland and the UK. To celebrate the news, Flogas is offering you the chance to win a Superser heater of your choice in both the September and October issues of Retail News. Superser is the original and still the bestselling mobile heater in Ireland and retailers looking to stock up on Superser mobile heaters for winter will be now able to source them exclusively from Flogas on 041-9831041 or For instant, controllable heat that’s both stylish and cost-effective, Flogas supplies the Superser Radiant and Superser Catalytic. In particular, the Superser Catalytic burns without a flame and has lower touch temperatures, making it safer. It’s also fitted with easy glide castors, which allows for trouble-free moving from room to room. To be in with a chance to win the Superser heater for October, simply answer the question below and send your answer, along with your name, address & daytime telephone number to or on a postcard to Flogas Superser Competition, Tara Publishing, Poolbeg House, 1-2 Poolbeg Street, Dublin 2.

Q: Name one of the Superser mobile heaters supplied by Flogas. Closing date 9th November 2009. Judges decision is final.

SUPERQUINN REVIEWS AUSTRALIAN WINE RANGE & ADDS TO CLASSIC COLLECTION The updating of Superquinn’s wine range continues apace with its Australian wines being reviewed and updated with some tasty new additions. The review took into account the diverse regionality of Australia from Tasmania in the South to Margaret River in the West, as well as ensuring that there is a range of price points to suit all customers, from €8.00 to €19.99. New to the range are the first Australian wines under the Superquinn Classic Collection label, which was launched earlier this year with five French wines. The new wines are all priced at €8 and include the Classic Collection Shiraz, Classic Collection Cabernet Merlot, Classic Collection Semillon Sauvignon, and Classic Collection Chardonnay. New to the Irish market are wines from Pirie Tasmania, including Pirie ‘South’ Riesling, Pinot Noir, and Sauvignon Blanc, all priced at €15.99. Superquinn Wine Buyer Richard Moriarty comments, “What we hoped to achieve by updating the Australian range is to show the Irish

consumer that Australia is not just about the big brands. I am especially pleased to have teamed up with Dr Andrew Pirie to bring to market his new range of wines from Tasmania, as well as expanding the successful own label Superquinn Classic Collection range to include four fantastic Australian wines at great prices. I’m confident they will prove to be as popular with our shoppers as their French counterparts.”

Other new additions to the range include: Angoves Long Row Chardonnay Angoves Long Row Shiraz Bears Crossing Chardonnay Bears Crossing Shiraz Cape Mentelle Cabernet Merlot Cape Mentelle Sauvignon Semillon Dandelion Vineyards Chardonnay

Superquinn .5 advert landscape.indd 1

15.99 15.99 8.99 8.99 19.99 19.99 10.99

Dandelion Vineyards Merlot Dandelion Vineyards Pinot Grigio Dandelion Vineyards Shiraz Viognier McGuigan Pinot Grigio S&P Semillon Sauvignon S&P Shiraz Merlot Wolf Blass Yellow Label Sauvignon Blanc

10.99 10.99 10.99 9.99 13.99 13.99 12.49

16/10/2009 14:40

KLEENEX® Unveils New Consumer Awareness Campaign to Help Stem Spread of Cold & Flu Viruses

Kleenex® has unveiled a €100k new Irish consumer awareness campaign designed to spotlight Kleenex® Anti-Viral Tissues as a forerunner in preventing the spread of cold and flu viruses. Central to Kleenex’s® new campaign is a powerful strapline: “Kleenex® Anti-Viral Tissues kill 99.9% of cold and viruses in the tissue, including the H1N1 virus - Catch it! Bin it! Kill it!” also reinforcing the current HSE public health campaign initiative. Kleenex’s® intends to engage high risk constituencies; mums and commuters through integrated brand communications, kicking off with national radio advertising on Today FM and Dublin’s 98FM over a five week period during peak cold and flu season. A second strand builds further visibility for the campaign through sponsorship of Q102’s daily weather reports for a three month period. The broadcast campaign will be reinforced by guerrilla sampling at key shopping and commuter locations around Dublin. A national PR campaign will draw on Irish media to impart Kleenex’s® vision of making tissues a vital step in preventing the spread of cold and flu viruses. Martina Jezdikova, Kleenex® Brand Manager at Kimberly-Clark, explains: “Catch it! Bin it! Kill it!. campaign reinforces the HSE call to action to prevent the spread of cold and flu viruses. As Ireland braces itself for a busy cough-cold-flu season, now more than ever before Kleenex® has a pivotal role to play in dealing with the challenges of cold and flu virus prevention.” Kleenex’s® Anti-Viral Tissues campaign continues with a range of point of sale for retailers.

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SMA Toddler Milk SMA’S new Toddler milk, part of the SMA Gold System, contains Omega 3 and 6, and includes vitamin D and iron to help support healthy growth and brain development. One 200ml serving of SMA Toddler Milk provides up to 50% of the recommended daily allowance (RDA) of key nutrients. To learn more, go to

New Guinness Draught Can FOLLOWING a hugely successful year for Guinness which culminated on September 24 with Arthur’s Day, the brand has now re-launched Guinness Draught in a can with new look packaging. The new sleek can design proudly features a larger harp logo on its front and its contemporary new look will reinforce the premium quality of the brand. A new visual identity has also been adopted across Guinness’ four and eight packs which will drive appetite appeal at the point of purchase and together with the new iconic can design, will achieve g r e a t stand out on-shelf. The launch of the new can and multi-pack designs is being supported by a heavyweight advertising campaign, including a TV ad, radio, outdoor, press and in-store promotions.


Carroll’s Slowly Cook a Winner CARROLL’S have launched their innovative new range of pre-packed sliced meats. The new range of ham has been slow cooked for a better taste and is 100% Irish from start to finish, carrying the Bord Bia Quality Assured Mark. The new Carroll’s range features ‘The Premium Selection’ parchment range, ‘The Select Cut’ everyday range and the new unique ‘Handy Pack’ lunchbox offer. Carroll’s are supporting the launch with an extensive marketing and advertising campaign.

Kingsmill Back on TV FAMILY bread brand Kingsmill is back on TV with its largest multimedia initiative since the brand’s 2007 relaunch. The three tongue-in-cheek creatives show the lengths people will go to, to enjoy a delicious Kingsmill sandwich, build upon Kingsmill’s well-established modern day family positioning and illustrate the emotional connection consumers have with bread. Each creative concludes with the call to action ‘Share your Confession’, inviting viewers to visit should they too have a cheeky and light-hearted confession they’d like to share.

Flahavan’s Oaty Flapjack Range FLAHAVAN’S have relaunched their oaty flapjack range with two new varieties, original and cranberry and a new improved choc chip recipe. Deliciously light and golden with an irresistible crumbly texture, these oaty snacks, with melt-in-the-mouth Belgian choc chips, juicy cranberry fruit or original, are made with the distinctive natural goodness and taste of Flahavan’s oat flakes. Made with over 40% wholegrain oats, each flapjack provides consumers with 7% of their daily fibre intake. Each variety box contains six individually wrapped flapjacks in an energetic and fun packaging design for increased shelf visibility.

New Look For Panda PANDA chocolate spread 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 will also feature on the Panda Peanut Butter range, which comes in three flavours, smooth and crunchy and new extra crunchy, in both a 1kg and 510g jar. Panda Dippers are a brand new addition to the Panda range. These little pots include mini crunchy breadsticks and hazelnut and vanilla dip, available in four-packs. 39



Shelf Life BEWLEY’S has signed a €250,000 deal with Tesco to supply the retailer’s UK stores with two own brand coffee products. The development will see Tesco’s Finest Colombian and Tesco’s Finest Java coffees produced in Dublin and supplied to Tesco stores throughout the UK. Pictured announcing the deal at Bewley’s Grafton St Café are Jim Corbett, Managing Director, Bewley’s, and Tony Keohane, Chief Executive, Tesco Ireland.

A Cork-based food marketing company has provided specialist food marketing consultancy services for an episode of the new RTÉ 1 reality TV show, ‘Higher Ground’, which aims to nurture the development of rural farm-based businesses. As part of the series, food industry experts, Bullseye Marketing supplied expert knowledge and mentoring to ‘Rupert’s Farm Beer’, a unique start-up microbrewery located in Ladysbridge, East Cork. Bullseye helped Rupert’s Farm Beer to develop a professional brand identity, brand strategy and marketing plan. Managing director of Bullseye, Conor Hyde, also played a key mentoring role by advising on other vital issues such as packaging, pricing, promotions and distribution strategies. TIPPERARY Natural Mineral Water was once again the Official Mineral Water sponsor to the Evening Echo Women’s Mini Marathon, as it has been since 2004. This year, 16,000 bottles were distributed to participants in this, the 29th year of the Cork Women’s Mini Marathon event, which took place at the end of September.

THE Irish Times’ journalist, Ann Marie Hourihane has drawn attention to the disappearance of an iconic, trusted brand from Irish supermarket shelves. Royal Baking Powder, which first appeared on the market back in 1866, and had legions of loyal users here in Ireland, has been unavailable in Ireland since early summer. Whatever the reason, the loss of this much-loved brand is a sad development for Ireland’s home bakers.

BOYNE Valley Honey’s National Art Competition, aimed at encouraging primary, secondary, third level students and adults alike to get creative, was launched recently with the help of Miriam O’ Callaghan. Entrants are invited to submit a work of art on the subject of their choice, using either the Book of Kells itself, the monks who wrote and illustrated it or life in 9th century Ireland as inspiration. Three Fine Art Facsimiles of The Book of Kells will be presented to the primary and secondary winning schools and to the individual from the third level and adult category. See www.boynevalleyhoneyart. com for more information. Pictured at the launch are Miriam O Callaghan; Gillian Hennessy, Boyne Valley Honey Brand Manager; and Jennifer Richards, Boyne Valley Honey Marketing Director; with the Boyne Valley Busy Bee.

AS part of the 250th anniversary celebrations, Guinness & Co. has relaunched Guinness Draught in a can, with new look packaging arriving in stores from October. A full marketing campaign will accompany this can re-launch, including a new TV commercial, called ‘Tornado’. Filmed mostly on location in Spain, ‘Tornado’ highlights the quality and distinctiveness of the Guinness can, using the analogy of a tornado, which dramatises the magic and mystery of Guinness. 40

KILKENNY County Enterprise Board is currently running an eightmonth pilot programme, entitled ‘Create a Taste – Food Innovation Network’, a new product development process which results in the development of at least one new product per company by the end of the programme. Participants include: Lavistown Foods, Cramers Grove Farmhouse Ice Cream, Dunedin Farm, The Two Little Cooks, Ryeland Cookery School, A Slice of Heaven, Marvelway Ltd, The Blackberry Café, Carlow Foods Ltd, Tasteworks Cookery School, Garrymore Farm, Goatsbridge Trout Farm, Killowen Yoghurt, Knockdrinna Cheese, and Sowans Organics. EXCELLENCE Ireland Quality Association have relaunched the Q Mark, originally launched in 1982, as a recognised quality symbol for Irish consumers. The Q Mark is only available to companies who achieve the highest standards of quality and excellence. The launch also represents the arrival of the Q Mark micro-site,, which will act as the official Q Mark Magazine, featuring monthly consumer and business tips.

IRELAND’S plastic bag levy is to be doubled to 44 cent, according to information from the Department of the Environment. The levy is being increased to ensure that consumers do not return to using plastic bags.

For peace of mind look for the Quality Mark

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Retail News October 2009  

Retail News is a one-stop shop for Irish grocers, designed, researched and written with the retail manager and store owner in mind. Keep up...

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