Retail News MAY 2020
Ireland’s Longest Established Grocery Magazine
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Contents News
When the strange becomes normal? EVERYONE in Ireland has had to come to terms with the ‘new normal’ over the last couple of months, as we deal with the Covid-19 pandemic. The grocery sector has kept the country fed safely, while ensuring the supply chain functions efficiently, and deserves our continued gratitude for doing so, a sentiment echoed by Dr Pamela Byrne, CEO of the Food Safety Authority of Ireland, in a wide-ranging interview on the impact of Covid-19 on the organisation, the food business and the grocery trade here (Page 16). Also on the Covid-19 pandemic, TAP Creations and Food Futures Insights have created a report to highlight their thinking around the future food shopping experience and the changes this could bring to the Irish market (Page 24); we look at the range of business supports available to help Irish companies negotiate the crisis (Page 28) and we analyse the findings of a Capgemini report into the impact of the Covid-19 pandemic on shopping behaviour across the world (Page 34). Elsewhere in a jam-packed issue, retail expert Simon Hedaux reveals how much revenue queues in your store could be costing you and provides practical advice on how to reduce them (Page 46), Jean Smullen looks at the impact of the pandemic on the wine business and highlights the big summer sellers (Page 54) and we report on the new Digital School of Food (Page 56). Kathleen Belton Editorial & Marketing Director
Covid-19 Pandemic
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Dealing with the new normal: grocery stores adapt to Covid-19 pandemic.
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SuperValu sales provide insight into lockdown shopping trends.
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Grocery growth slows slightly as shoppers adapt to new normal.
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Lidl Ireland secures beef exports from Ireland; XL and Marty Morrissey make the perfect team.
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Irish Quality Food Awards entry
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deadline extended; Fresh helps consumers to take home the restaurant; Tetra Laval Group donates €10,000 to Irish Covid-19 relief efforts. Brands adapt to new OOH environment; Love Irish Food launch ‘A Bite of Summer’.
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Circle K launches Ireland’s largest free grocery home delivery service.
16
Dr Pamela Byrne, CEO of the Food Safety Authority of Ireland, explains what the Covid-19 pandemic has meant for the organisation, praises the efforts of grocery retailers and reminds food suppliers of their obligations if supply chain shortages mean a change of ingredients or packaging.
23 Smarties Bites from Nestlé Ireland Confectionery are a completely new way to enjoy one of Ireland’s favourite confectionery brands.
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Production: Morgan Stokes
The must-stock Lindor Treat Bar
offers consumers “a moment of bliss wherever you go”, and is available in a slim stick format and a convenient multipack.
In-Store Efficiency 46
Simon Hedaux, founder and CEO of Rethink Productivity, asks how much revenue you are losing to queues in your store and advises on what you can do to reduce them.
On the Vine: Summer Wines 54
Jean Smullen examines what the Covid-19 pandemic has meant for offtrade wine sales and looks at ‘must stock’ wines for the summer season.
Digital School of Food 56
A new online food programme from Local Enterprise Offices is set to grow the number of Irish food start-ups.
Market Research 58
What is the future for market research in a post-pandemic world?
Regulars & Reports
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Graphics: John Sheridan Printed by: W&G Baird
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Confectionery
Once again, we examine the ongoing effects of the pandemic on the FMCG market. Gavin Rothwell, Food Futures, and Peter Rigney, TAP Creations, examine some of the changes we could see in the Irish grocery market after the pandemic has passed (Page 24). We look at the range of business supports available for companies who have been affected by the pandemic, including one designed specifically for retailers to upgrade their online capability (Page 28). Jennifer Macrae, Vice President Product Management, Mastercard, reflects on the likely impacts of Covid-19 on eCommerce both now and in the months ahead (Page 32). A new report from Capgemini examines the impact of the virus on shopping behaviour across the globe, with some very interesting results (Page 34).
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The Retail News Interview
Ireland’s Longest Established Grocery Magazine
Wine Correspondent: Jean Smullen
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Forecourt Focus: News
Retail News Chief News Reporter: Pavel Barter
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Reproduction without written permission is strictly prohibited.
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Industry News
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Retail Ireland: Monthly Update
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Ice Cream
48
Healthy Options
52
Drinks News
60
What’s New
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News
Dealing with the new normal: grocery stores adapt to Covid-19 pandemic CLICK and collect and grocery delivery services could herald a new world for grocery retail when we emerge from the Covid-19 pandemic. Last March 12, when Taoiseach Leo Varadkar TD announced the closure of schools and restrictions to public gatherings, due to the spiralling Covid-19 crisis, Doug Leddin donned his thinking cap. The Dublin publican realised his business, a bar on Harcourt Street, would be furloughed, so he began consulting with Sebastian Conway, his business partner, about alternative options. Just as their ideas seemed exhausted, he received a text from his wife. “She said, ‘We need to go to Tesco because there’s a twoweek wait for online deliveries’. When I got that message, we were like, ‘Let’s set up an online shop for stuff that you need’. We set it up and picked about 50 items of stuff that you couldn’t live without: pasta, rice, etc.,” Leddin reveals. StuffUNeed.ie, Leddin’s business, has conducted around 4,000 home deliveries so far. Although it deals directly with suppliers, the business is now in talks with retailers. After all, many symbol groups around the country don’t do deliveries at all. “We’re able to assist them and offer them a platform,” Leddin explained to Retail News. Buymie, a grocery delivery company that signed a multiyear partnership agreement with Lidl Ireland, is Leddin’s story on a larger scale. After raising €2.2m in investment, the company is currently delivering food and drink across the Dublin area. Buymie, which ‘hires’ shoppers to complete orders through an app, has asked the Government for assistance to scale up its model. Arnold Dillon, Director of Retail Ireland, says there has been a major effort to ramp up distribution channels across retail. As the country eases out of restrictions, precedents are being set. “The expectation is that demand [for deliveries] will stay high,” notes Dillon. “A lot of retailer delivery services are operating at maximum capacity. Even as the economy-wide restrictions ease, there’s no expectation that online trade will fall off. In fact, there’s an expectation that consumers will have
Circle K has launched a new free grocery home delivery service across its network of company owned service stations nationwide.
developed habits that will continue.” The main challenge, suggests Tara Buckley, RGDATA Director General, will be how supermarkets can make delivery profitable when the crisis ends. “There has been a big increase in click-and-collect,” she says. “I suspect that will be the way a lot of people will shop in the future. Symbol groups are looking at that space.” Grocery multiples have raced to improve their services. Tesco Ireland has created “thousands of additional slots”, through home delivery and free click and collect services, a spokesperson told Retail News. Tesco Ireland has coped with increased demand in a number of ways: “Hundreds of new colleagues in our distribution centres, stores and home delivery teams, and over 2,000 additional orders delivered per week.” Tesco has delivered an average of 1.8m items to Irish homes per week, and the supermarket is prioritising over-65 customers “as much as possible,” noted the spokesperson. “In April, we introduced priority access to delivery slots for customers over the age of 65 who register online with us. We’ve seen high level growth in our over 65’s online customers, now accounting for one in every 10 orders weekly.” Tesco Ireland told Retail News it has strict safety measures for delivery drivers and customers alike. These “begin in store with our dedicated food pickers. Our pickers must wash their hands thoroughly before, during and after shifts.” They added: “We supply each delivery driver with hand sanitisation measures. Each delivery van is thoroughly cleaned inside and out, before and after each shift. For the safety of our staff and customers, we operate contactless delivery. This involves no contact between our driver and customer, where groceries are safely placed on Arnold Dillon, Director of the customer’s doorstep...” Retail Ireland. Learning how to
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News
Symbol groups like Mace have introduced and extended delivery services for customers during the Covid-19 pandemic. circumnavigate these changing consumer habits is one of the many areas of concern for retailers as we emerge from lockdown. Vincent Jennings, CEO of the CSNA, noted that the wage subsidy scheme is working well for retailers. But convenience stores, who often deal with a high turnover of staff, could be affected if this is tapered off too soon, as it only applies to employees who came onto the payroll prior to February 29, 2020. There is also a mistaken Tara Buckley, Director belief that every grocery retailer General of RGDATA. has profited from the crisis, Jennings pointed out. “The loss of delis in our stores has been phenomenal,” he said. “Grocery and alcohol are at lower margins, so our profitability has been shaved.” Forecourts have also been victims of the ‘new normal’, according to Buckley. “Take a busy forecourt store near a school. They’re not selling any petrol, they’ve closed down their deli, their sandwich bar. These are all areas that would have contributed to profitability. Staying open because they are a community service, selling some dry groceries, milk and bread,
won’t sustain the business in the long term.” The role of retail during the crisis has been hampered, in some circumstances, by aggressive customers. Last month, Eugene Scally, who owns Scally’s SuperValu in Clonakilty described the treatment of his staff by some customers as “upsetting” and “frightening”. A butcher shop in Ranelagh went as far as barring rude or aggressive Vincent Jennings, CEO, customers, who were CSNA. complaining about queues due to social distancing guidelines. “There is a concern that some members of the public are taking things for granted,” continued Jennings. “But customers who cause trouble are a minority. There are probably more people who are better mannered now than they ever were. They are thanking staff for serving them.” Grocery retailers should be proud of all they have achieved during the crisis, according to representative groups. At the start of the crisis, there was little guidance. “Grocery retailers came up with ideas like perspex screens at the tills, signage on the floor, organised queuing and sanitation, cleaning schedules,” said Buckley. “A lot of them changed the way they operate their business, so there’s no shelf-stacking when customers come to the store.” In fact, retailers have created a workable blueprint for other areas of retail that will soon emerge from lockdown. “Because the grocery sector traded on and stayed open during the crisis, they are well placed to manage social distancing, all the health and safety obligations that come with managing a retail outlet during a pandemic,” said Dillon. “We are seeing the other parts of the retail sector looking to grocery and the lessons they have learned. There has been widespread recognition of the significant work that was done by grocery in a short period of time. They completely re-orientated how to do business.”
SuperValu sales provide insight into lockdown shopping trends SUPERVALU has revealed a breakdown of the products and categories that have been selling strongly in its stores since the lockdown began. These figures paint a unique picture of how staying at home has influenced shopper habits across Ireland. The lockdown has seen the public focus spend more time in the kitchen: this has included a focus on broader culinary activity, with SuperValu reporting an 80% increase in olive oil sales. Meanwhile, the need to clean up more often in the kitchen saw a 60% rise in sales of dishwasher tablets. With the majority of people working remotely since March, there has been renewed interest in baking and sales in this category have risen, most notably with flour products up 200%. There has also been a considerable uptake in demand for other related products such as toppings, mini marshmallows and core baking ingredients like raising agents, flavourings and food colourings. With many cafés closed, consumers are still looking for their coffee fix and SuperValu statistics show a 100% increase in coffee pod sales. Also, as families relax together by watching streamed series and box-sets, there has been a 60% increase in sharing chocolate bars in SuperValu stores. However, shoppers are also craving healthy food, and SuperValu’s statistics show that a banana is being sold every second across its stores.
SuperValu shoppers have also become green-fingered, with plants and flowers sales rising by 200%. The food retailer’s data also show that personal hygiene has been of paramount importance to shoppers during the lockdown, with soap sales up by 400% and due to Covid-19, SuperValu has sold enough toilet paper to go around the world eight times. “SuperValu’s statistics provide a unique snapshot of Irish shopping Edel Russell, Innovation habits during the lockdown,” & Consumer Director, noted Edel Russell, Innovation & SuperValu. Consumer Director, SuperValu. “It’s clear that people have been focusing on home cooking, baking and gardening, and are spending more quality family time together. Our strong roots in communities across the country means that we are committed to serving vulnerable groups throughout the Covid-19 crisis and our trusted retailer network continues to provide these essential supports, with home delivery growth equivalent to opening 12 new SuperValu stores.”
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News
Grocery growth slows slightly as shoppers adapt to new normal while Aldi grew by 15.6% to hold an THE latest figures from Kantar show 11.8% share. take-home grocery sales in Ireland In the shorter term, SuperValu’s increased by 17.2% in the 12 weeks large store estate saw it benefit from to April 19, as shoppers adjusted to shoppers choosing to visit outlets life under lockdown. While grocery closer to home, and it was the only sales are strong, retailers will retailer not to experience reduced have felt the effects of social footfall during the past four weeks as distancing restrictions on food-to-go it took the number one position in the purchasing and other non-grocery market. A statement from SuperValu categories. said: “This is testament to the “It’s been a challenging few weeks remarkable effort and dedication of our and we’ve all been grateful for how hard independent retailers and their staff, as the grocery retailers have been working well as the implementation of protective to keep us fed and watered,” said David measures such as plexiglass at tills and Berry, Managing Director - Ireland at increased contactless payment limits for Kantar. “In the absence of dinners with staff and customers at a very early stage friends and lunch on the go, many more during the Covid-19 crisis. Additionally, meals are being eaten in the home and our robust supply chain ensured that grocery sales have risen accordingly. shelves remain fully stocked from the But social distancing means people are outset of the crisis. These measures less likely to be buying categories like mean that shoppers can always buy clothes, food on the go, and general groceries without making multiple merchandise, which means, for some trips.” retailers, the overall picture will be more Demand for online grocery has scratch on the rise. “People are turning modest.” to cooking from scratch as a good soared as people try to limit their contact In the most recent four weeks, way to keep their families entertained with others and 10% of Irish households year-on-year grocery growth slowed at home. Sales of ready meals are in received an online grocery delivery in the slightly from March levels to 22.5% and, decline but 50% of Irish households past four weeks compared with 6% last as people followed Government advice bought baking supplies in the past four year. “An additional €20.6m was spent to stay at home, the average household weeks, with flour up 52% and sugar up online this month and it’s heartening visited the grocers 19 times, two times 43%. Those shoppers trying to recreate that the number of retired people getting fewer than the same period last year. their favourite takeaway dishes have groceries delivered has doubled in the “In an effort to get everything they also boosted sales of ethnic ingredients past 12 weeks, indicating the take up of need in one go and cater for all the by 41% and herbs and spices by 61%,” additional meals and snacks eaten at delivery slots among more vulnerable Berry noted. home, shoppers are adding an extra groups,” said Berry. “There are signs that people are four items to their baskets each visit, Consumers are looking for ways to trying not to let the lockdown dampen increasing their monthly grocery bill by pass the time during lockdown, with their spirits. While beer gardens and €118 on average,” Berry revealed. “The home baking and cooking meals from change in shopper behaviour adds up MARKET SHARE - TOTAL GROCERY to an extra €440m spent on grocery in Includes expenditure across Food, Beverages, Alcohol, Household and Health & Beauty categories the past 12 weeks, but this additional spend is impacting individual retailers Total Take Home Grocery - Ireland Consumer Spend in different ways. Before lockdown, 12 Weeks to 24/04/19 12 Weeks to 19/04/20 % Change in value sales Dunnes customers already spent %* %* % 80% more than the average shopper each visit at €43.80, which means the Total Outlets 100.0% 100.0% 17.2% retailer has experienced less of a jump Total Multiples 88.8% 89.3% 17.8% in spend per trip than those grocers Dunnes 22.2% 21.7% 14.4% starting from a lower base. Dunnes Tesco 21.8% 21.7% 16.7% is growing slightly behind the rest of the market as a result, but these are SuperValu 21.4% 22.2% 21.3% extremely narrow margins and only 0.5 Aldi 11.9% 11.8% 15.6% percentage points separates the three Lidl 11.5% 12.0% 22.1% retailers at the top of the table.” Other Outlets** 11.2% 10.7% 12.6% Lidl was the fastest growing of all the retailers during the full 12-week * = Percentage Share of Total Grocers period, boosting sales by 22.1% and ** = Includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers and Cross Border shops Source: Worldpanel FMCG increasing its market share to 12%,
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News wine bars remain off limits, people have been turning to the grocers for their favourite tipples and boosted sales of alcohol by 70%, an additional €47m. Wine sales increased by 50% year on year, while beer, lager and cider sales benefited from the warmer weather and were double the levels in the same four weeks in 2019.” Grocery market inflation stands at 1.6% for the 12-week period ending April 19, 2020. Meanwhile, figures from Nielsen reveal that Irish shoppers spent €371m on groceries during the week ending April 12, 2020, the highest sales week of the year so far, and an increase of 14% compared to the same week ending on Easter Sunday in 2019. Moreover, sales of alcohol reached €49.3m, an increase of 44% in spend compared to the same Easter week in 2019. Irish consumers celebrated the Easter weekend around the dinner table, with frozen poultry reaching €2m in sales, a massive 631% increase compared to the same week ending Easter Sunday in 2019. There was also a significant year-onyear increase in sales for other Easter dinner-related food such as gravy (+59%), turkey (+14%), potatoes (+14%), lamb (+11%) and mint sauce (+8%). This also included an increase in frozen desserts (+33%), take home ice cream (+57%) and fresh cream (+68%). Traditional meals also saw a boost on the breakfast table, as ‘Full Irish’ breakfast ingredients saw a significant rise in sales. Black and white puddings were up by 40%, prepacked sausages by 31% and prepacked bacon was up 37% compared to the same week ending Easter Sunday in 2019. Making the most of the weekend, Irish customers took to their gardens for barbecues and stocked up on alcohol supplies. Sales of barbecue sauce were up by 53%, and ignition-related products, typically used to light barbecues, were up by +51% to €1.6m. Meanwhile, demand for stout skyrocketed by 177%, reaching €2.7m in sales, and lager sales grew by 78%, reaching €15.3m. Table wines (+27%) accounted for €15.6m, whilst sparkling wine and champagne (+21%) reached €1.1m. However, one category which suffered during that week was confectionery, which only grew by +1.4% compared to the same week ending on Easter Sunday in 2019, with a -7% decline in sales for Easter eggs. This is an overall -8% decline in spend for Easter eggs during the eight weeks leading to Easter in 2020 compared to 2019. Karen Mooney, Ireland market leader at Nielsen, said: “We are now becoming accustomed to the lockdown in Ireland, and Irish consumers are starting to settle into this new ‘normal’ of social distancing and staying indoors. This has evidently resulted in a different Easter experience, with shoppers focussing less on purchasing traditional Easter confectionery.
Lidl Ireland secures beef exports from Ireland LIDL Ireland and their exclusive beef supplier, Cavanbased Liffey Meats, have secured exports to the value of €14m, an increase of 20% on 2019 figures, despite the ongoing challenges of Covid-19 and the uncertainty Brexit brings to the agricultural industry. The deal will see 17 fresh and frozen Bord Bia Quality Assured products exported over the next 12 months to Lidl stores in the USA and Europe. Highlights include a quarter of a million burgers to 3,200 stores across Germany, along with two planned promotions for US stores this summer. “Lidl Ireland has always been a significant exporter of Irish food and drink and a committed stakeholder in the Irish food industry,”’ said Tara McCarthy, CEO of Bord Bia “This is an exceptionally challenging time for Irish suppliers and Irish farmers, so I am pleased to see Lidl’s tangible efforts to support the Irish beef industry and their continued commitment to sourcing Bord Bia Quality Assured Irish beef.” John Paul Scally, Managing Director for Lidl Ireland & Northern Ireland, said: “At Lidl, supporting and developing our local supplier network has always been a priority for us and now, more than ever, we are committed to investing in our partners. With our commitment and support they can strengthen their supply chains, build their capacity and workforce to supply not only the island of Ireland, but more than 18 countries across Europe and the US with quality Irish beef.” Instead, Irish consumers are shifting their focus to other forms of indulgence, where they can spend more time with the family over a roast dinner or traditional Irish breakfast with all of the trimmings. Of course - complemented with an alcoholic beverage or two in the sunshine.”
XL retail brand and Marty Morrissey make the perfect team WE all need a smile from time to time during these extraordinary times and grocery retail brand XL is proud to be the official sponsor of RTE Player’s new four-part series, Marty in the Shed, which sees the hugely popular Gaelic Games correspondent broadcasting a light-hearted talkshow from his garden shed in Co. Clare. Commenting on the sponsorship, former All-Ireland winner with Dublin and Group Head of Sales with XL, Paul Bealin, said, ”We are delighted to sponsor the Marty in the Shed Show. Supporting our communities is at the core of everything XL do and the format of this new RTE Player show, with Marty at that helm, reflects that brand ethos. The four-programme series will provide the people of Ireland some much needed light relief from the stresses associated with current Covid-19 lockdown. Marty’s
contact list is as impressive as it is extensive and we are all looking forward to enjoying the show.”
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News Irish Quality Food Awards entry deadline extended
THE entry deadline for the 2020 Irish Quality Food and Drink Awards has been extended to Friday, July 3, amid the current Covid-19 pandemic, giving companies extra time to enter products for the chance to win one of these prestigious awards. Since their launch eight years ago, the Awards have
Fresh help consumers to take home the restaurant FRESH The Good Food Market has partnered with two of Dublin’s leading restaurants to enable customers to recreate the much missed restaurant experience in their home. The executive chef teams at Asador and Prado, based in Ballsbridge and Clontarf respectively, have created at home BBQ meal kits, comprising everything consumers need for the perfect barbecue at home: premium quality meat, brioche buns, sides and sauces, boxed in a convenient pack with instructions for cooking. Customers using FreshOnline.ie can order the meal kits along with their groceries, fresh food, wine and treats. “This collaboration will offer our customers even more choice, quality and new food experiences at home,” said Noel Smith, founder and Managing Director at Fresh The Good Food Market. “At the same time, we are able to grow our online operation with exciting offers.”
been responsible for launching hundreds of innovative new products onto the market and boosting the sales of many more. Retailers, wholesalers, foodservice, own label and branded producers can enter food and drink products into a broad range of categories; each being specifically tailored to represent the key drivers in today’s ever-changing marketplace. This year sees the introduction of a number of champion awards which will be presented alongside the existing Retailer of the Year and Christmas Retailer of the Year accolades. Retailers will automatically qualify for these awards based on best performance across selected product categories. An integral part of the Irish Quality Food and Drink Awards is that each entry receives a comprehensive judges’ feedback report, even if the product does not reach the finalist stage. This provides all entrants with vital product insight from independent leading experts, which can be used as a valuable product development tool. For further information about the Irish Quality Food and Drink Awards and how to enter the 2020 Awards, please visit irishqualityfoodawards.ie.
Tetra Laval Group donates €10,000 to Irish Covid-19 relief efforts TETRA Pak, Sidel and DeLaval, have jointly donated €5,000 to Our Lady’s Hospice & Care Services and €5,000 to Irish Red Cross, with a view to support the health care system/ Covid-19 relief efforts in Ireland. “We are very grateful to receive this generous donation from Tetra Pak, Sidel and DeLaval,” said Eleanor Flew, Director of Fundraising & Communications, Our Lady’s Hospice & Care Services, Harold’s Cross, Blackrock and Wicklow. “Our frontline teams are working round the clock to navigate the challenges each day brings and to make sure we protect and care for our patients in their homes and in our hospices throughout the Covid-19 pandemic... This much-needed donation will go towards helping our patients and on behalf of them and their loved ones, thank you.” “Donations such as these help to ensure our vital work within communities can continue,” revealed Jocelino Jorge, Head of Fundraising, Irish Red Cross.
Carbery Group focuses on sustainable growth CARBERY Group, the West Cork based international ingredients and cheese company, has reported a solid financial performance for the year ended December 31, 2019, grounded in a commitment to responsible expansion and sustainability across the Group. Group turnover increased by 3% to €434m through growth across all business segments. Milk volumes in 2019 were 567m litres, a growth of 42% between 2015 and 2019, all processed in Ballineen, West Cork. The company’s €78m cheese diversification project is due for completion later in 2020, as the new mozzarella line becomes operational. Carbery Chairman TJ Sullivan thanked “the farmer suppliers and their families who have been a huge part of our 2019 growth, and I want to assure them we are doing all we can to continue to protect this growth throughout 2020 and the current Covid-19 crisis.”
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News Brands adapt to new OOH environment THE Irish and global Out of Home (OOH) environment has been hit hard by the current Covid-19 pandemic. As a direct result, the OOH audience has declined and brands have had to adapt their strategies to meet Brennans Bread’s latest digital the changing OOH campaign brings humour landscape of OOH to consumers yet holds a advertising. perfect relevance to the current In mid-March circumstances. when the potential of a lockdown was imminent, Irish consumers responded by grocery shopping, which sparked an increase in footfall in retail environments. In response to this, Kinetic, the innovative OOH communications specialists, has worked with a number of Irish brands to utilise Digital Out of Home (DOOH) in the growing retail environment, these include Brennans Bread and KBC Ireland. A recent campaign launched by KBC aims to remind consumers of safer methods of payment and the fact that they offer free contactless payments to their customers. The
campaign planned by PHD and Kinetic ran across several retail formats including Digitowers, Adshel Live, Tesco Live, dPods, Ivisions, Super D, Retail D, Digihubs, and Digishelters targeting retail stores. Brennans Bread’s latest campaign brings humour to consumers yet holds a perfect relevance to the current circumstances. The creative, developed by JWT Folk, describes truisms we are all experiencing on a daily basis– the DIY haircuts, our new love of gardening, the well walked dogs and the multitaskers. The campaign, planned by Mindshare and Kinetic, is running across dPods, Digitower, Tesco Live, Adshel live and Ivision screens. “Since March, there have been huge changes in consumer behaviour – and in particular, shopping behaviour,” said Aoife Hudson, Deputy Managing Director at Kinetic. “The flexibility of Digital OOH has made it the perfect platform to allow brands to quickly adapt their communications to be fit-forpurpose in the current circumstances.” In mid-March when shopping peaked, Kantar reported that grocery sales increased by 22% on same time last year. Consumers were inclined to spend more, an average increase of €122 was spent on groceries than in preceding 12 weeks. All supermarket groups reported an increase in sales. “These figures provide an opportunity for brands to remain present and continue communicating with their audience through the OOH and DOOH platform,” said Hudson. “That opportunity requires thought on tone and relevance to the current situation. It has been encouraging to see some of our clients do that effectively.”
Love Irish Food launch ‘A Bite of Summer’ BIM Aquaculture Remote
Classroom goes online
LOVE Irish Food had a great line up planned for the Bloom festival this year. However, with Bloom not going ahead, and instead becoming an online event on May 31 (BordBiaBloom.com), Love Irish Food is running a digitally led, community based campaign to showcase its brands and the family of Love Irish Food members over eight days from May 14-21, with the objective of getting the nation behind supporting #LoveIrishFood during this unique time. “We want to bring the spirit of local community food festivals to people at home, with a Bite of Summer,” said Executive Director of Love Irish Food, Kieran Rumley. “Shoppers have become increasingly aware of local Irish food producers in recent weeks. These producers have and will continue to provide great continuity of supply to Irish supermarkets. We depend on them and greatly value the service that they provide. Over the coming months, these local companies will continue to keep the shelves stocked and keep local communities working together.” See www.loveirshfood.ie for more information.
BORD Iascaigh Mhara (BIM) has announced its Aquaculture Remote Classroom (ARC) has moved temporarily online, allowing teachers and pupils access to a series of lessons that have been specially created based on the 5th and 6th class school curriculum. Primary school children have been learning how oysters, salmon and other seafood are being sustainably farmed around the coast of Ireland in the purpose-built Aquaculture Remote Classroom (ARC) since its launch in 2018. The mobile classroom has visited more than 50 national schools to date. “BIM is proud to be able to offer this online resource to teachers and their pupils as schools remain temporarily closed,” said Richard Donnelly, Sectoral Manager for Salmon and Shellfish, BIM.
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Industry News XL: How good is your Gaeilge? XL Ireland have come up with a great way to stay busy, learn and have fun during the Covid-19 lockdown by launching a Facebook campaign using animated Irish flashcards to encourage learning Irish. Every day, a new flashcard is introduced as part of the ‘How Good Is Your Gaeilge?’ campaign. At a time when parents across the country are home-schooling, this campaign was created as a fun educational support tool to teach common words, phrases and facts, as Gaeilge, to all ages. These Irish flashcards include a wide variety of phrases and words from food such as bananas and apples to everyday household items such as keys and money.
Management Buyout at Anglo Irish Refrigeration Group
IN October 2019, Trevor Wright, Sales Director, and Niall Jones, Finance Director, completed a management buyout of the Anglo Irish Refrigeration (AIR) group. Northern Ireland’s Portglenone Refrigeration Services has been part of the AIR group since 2006, and together the group now directly employs over 150 people throughout the island of Ireland. AIR was first established in 1976 and is a very well-established company with a great reputation for sales and after-sales service of all types of refrigeration, catering and air conditioning equipment throughout Ireland. Based in Ashbourne, Co Meath, the group now has a fleet of over 70 vehicles, providing a 24/7 service to all its customers 365 days of the year. For more information, see www.anglo-irish.com.
BWG Foods supports Operation Transformation BWG Foods is proud to be supporting RTÉ’s new Operation Transformation: Keeping Well Apart series. This is a special series and focuses on experts and the participants sharing their knowledge and real-life experience to help others as we stay apart to keep safe and healthy. BWG Foods is the supporting retail group for the opening two weeks of this special edition of the show with its retail brands Spar, Eurospar, Mace and Londis. An independent retailer from each symbol delivered all of the grocery needs of show participants to them. Susan Barry, owner of Mace Beaumont, arranged two deliveries of groceries to feed the Ryan Mongey family (pictured). Spar Murroe delivered the groceries for the two weeks of the show to the Ryan family. Mulroy’s Londis Moneen Roundabout, Castlebar, did likewise for the Gavins and Eurospar Ballymun looked after the grocery needs of Ann Brophy, who is cocooning in Santry.
Lidl Ireland commits to native woodland scheme AS part of its sustainability strategy, ‘A Better Tomorrow’, Lidl Ireland has committed to a native tree planting partnership with the Department of Agriculture, Food and the Marine. The Woodland Environmental Fund (WEF) initiative will see Lidl plant over 82,000 trees across Ireland in 2020. The move comes as Lidl seeks solutions to meet expanding climate and biodiversity challenges. The first and largest of the native woodland sites has completed planting in Burnellstown, Co. Westmeath, where almost 33,000 trees were planted ahead of Earth Day which took place on April 22. Pictured are (l-r): land owner Brian Collentine and J.P. Scally, Managing Director at Lidl Ireland and Northern Ireland.
L’Oréal Ireland donates hygiene products to frontline workers IN ongoing support of the fight against Covid-19, L’Oréal Ireland is implementing a series of measures for communities most impacted by the crisis. The group and its family of brands are donating 50,000 hygiene products and hand sanitisers to frontline healthcare workers in Ireland, serving the most vulnerable people and striving to curb the pandemic. The group is also donating 27,000 hand sanitisers to frontline pharmacy and grocery staff, who are ensuring availability of essential goods and services to communities across Ireland. These products will be provided completely free of charge. This commitment builds on the L’Oréal Group’s wider European solidarity programme announced globally on March 18. “The frontline healthcare workers and retail staff are doing an incredible job looking after the sick and providing essential products and services to communities,” said Vismay Sharma, L’Oréal UK and Ireland Country Managing Director. “We feel honoured to be able to provide them with hand sanitisers and key hygiene products.”
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Industry News Aldi to reintroduce normal opening hours ALDI Ireland returned to normal opening hours from Thursday, May 7. Standard store opening hours of 9am-10pm, Monday to Friday, and 9am-9pm, Saturday and Sunday, were reintroduced across Aldi’s 142 stores. Store opening hours had been temporarily shortened to help support staff who have been working tirelessly to serve customers and keep stores at their best every day during heightened demand. Aldi has also carried out analysis of the busiest and quietest shopping days, revealing that 9am to 11am and after 7pm (Sunday to Wednesday) are generally quieter in stores. Aldi also noted that trading patterns have started to settle. While customers are changing their shopping habits, the busiest days of the week for shoppers remain towards the end of the week, from Thursday to Saturday, with peak customer footfall between 12 noon and 6pm.
Brandshapers announces new MD SALES, marketing and distribution specialists, Brandshapers, has announced the promotion of Liam Dooley to Managing Director. Brandshapers works with brands across food & drink, baby, healthcare, wellness and beauty, driving growth for the likes of Ella’s Kitchen, Bacofoil, Real Techniques and Seven Seas. “Clients outsourcing brand growth need a local partner they can trust that understands how that market works,” Dooley noted. “With a direct-tostore model still in place for most retailers, Ireland remains very much a distributor-led marketplace. Brandshapers is well positioned to help current and future clients achieve their growth aspirations from this market.” Brandshapers also unveiled its new brand identity and website, www.brandshapers.ie.
Spar retailers going above and beyond SPAR retailers all over Ireland are going above and beyond to serve their customers, their local communities and crucially the most vulnerable in our society. They are doing this in many ways, including home deliveries, telephone orders and a number of other initiatives designed to make life easier for customers. For Louis Byrne (pictured), owner and operator of Spar Caherslee, Tralee, and Spar Oak Park, Tralee, this included making a special delivery of Spar water, baked goods and some sweet treats to the heroes working on the front lines in University Hospital Kerry recently. Louis and Spar are keen to take a moment to show their appreciation for the tremendous work those working in our healthcare system are doing in the most challenging of circumstances.
Society urges people urged to ‘Think Coeliac’ THE Coeliac Society of Ireland recently marked its 50th anniversary by attempting to set a record for having the world’s largest ever gluten free internet tea party. The tea party was part of celebrations taking place amid challenging conditions during Coeliac Awareness Week (May 11-17), which was sponsored by Promise Gluten Free. The Society wants more GPs and health professionals to ‘Think Coeliac’ when patients present with unexplained gastro issues. “Routine testing of patients who present with recurring gastro issues could alleviate much suffering caused by years of misdiagnosis,” noted Coeliac Society CEO Gill Brennan.
Avoca selling hand sanitiser from Wicklow Way Winery AVOCA stores nationwide and online are now selling original hand sanitiser produced by Wicklow Way Winery. Husband and wife duo, Brett and Pam Stephenson, run a small working winery in the heart of Wicklow, making delicious wines from Irish strawberries, blackberries and raspberries. “We are delighted to support Wicklow Way Winery in their efforts to support the community during the Covid-19 pandemic,” said Maoliosa Connell, Marketing Director at Avoca. “We believe this is a fantastic initiative from a local business, who are now offering one of the best value sanitisers available.” Wicklow Way Winery’s hand sanitiser, €6.50 per 250ml unit, is now available in Avoca stores and online at www.avoca.com.
To find out more contact:
Terry Donnan - 086 7714696
12|Retail News|May 2020|www.retailnews.ie
Industry News FAI and Spar launch healthy eating guide for children THE Football Association of Ireland has joined forces with Spar to encourage children to adopt healthy eating habits by sharing easy-to-follow recipes for wholesome breakfasts, lunches, dinners and snacks at home, all made with ingredients available in your local Spar store. Eating healthier food helps children to concentrate for longer and learn more, while it also helps create the energy they need to perform at their best at sport. Three times a week, on Tuesdays, Thursdays and Saturdays, three healthy recipes that are fun to make and healthy to eat will be chosen by members of the Ireland senior squad and available to download from the FAI’s website (www.fai.ie). 20 players from the Republic of Ireland Men’s and Women’s Senior Teams are involved in the 2020 Healthy Eating Guide, including Spar FAI Primary School 5s Ambassadors Amber Barrett and Jack Byrne (pictured). The 2020 Healthy Eating Guide can be downloaded at www.fai.ie/sparhealthyeating.
Davis Events launches HanSan mobile hand cleansing units
DAVIS Virtual Events Agency, one of Ireland’s leading event management companies, has announced a nationwide deal with An Post for HanSan, a simple mobile hand cleansing unit that effectively delivers hand sanitiser without the need to touch anything with your hands. With no requirement for water, power or waste, HanSan simply operates by foot pump. The unit is mobile, independent, robust, easy and safe to install anywhere, indoors and outdoors, such as retail spaces, public buildings, in parks, on streets and inside venues. The unit comes in a range of sizes to suit all needs and the messages on the units can be fully branded or altered over time as new information becomes available. The first unit was installed at the GPO Dublin, with the rollout of 45 units at Post Offices nationwide over the coming weeks. Aisling Rowe is pictured demonstrating the HanSan with Conor Nott, Project Lead, An Post, and Paul Davis, CEO, Davis Events, in the GPO.
Kellogg launches summer hours scheme for employees AFTER over a month spent working from home, Kellogg is encouraging its employees in Ireland to take that much needed break away from their screens with its Summer Hours scheme. Now in its 17th year, Kellogg’s Summer Hours scheme has been adapted in light of the lockdown measures currently in place. The scheme, running from May to September, previously meant that all office-based employees were able to finish work from 12pm on a Friday, provided they had completed a full week’s hours. This year, with all colleagues currently working from home throughout the week, Kellogg is offering its employees the flexibility to utilise the Summer Hours scheme on a day of their choice, from Monday to Friday.
Aldi to sell over €27m of Irish grown potatoes ALDI will sell €27m worth of Irish grown potatoes this year, with New Season Irish Potatoes arriving across 142 Aldi stores on May 7, making Aldi the first retailer to the market with the New Season Potatoes. O’Shea’s Farms based in Piltown, Co. Kilkenny, together with North County Dublin-based PKS Farms are supplying the potatoes to Aldi’s stores, with Premier, Home Guard and Queens on shelf and New Season Roosters to follow in August. “We are thrilled to be first to the market with this product in 2020 and we know that given the choice, Irish shoppers will always buy Irish, so thanks to both suppliers for producing the potatoes on schedule for our shelves,” noted John Curtin, Aldi’s Group Buying Director.
Blacknight sponsors Guaranteed Irish business podcast GUARANTEED Irish has announced that leading Carlow-based internet firm Blacknight will be the official title sponsor of the Guaranteed Irish Business Podcast from May 2020 for the remainder of the year. The Guaranteed Irish Business Podcast is dedicated to Irish business sector trends and current affairs, featuring top entrepreneurs, executives and industry experts, and is presented by Guaranteed Irish Chief Executive Brid O’Connell. The weekly podcast features key business partner companies based in Ireland, from SMEs to global brands, and showcases the very best of Irishowned business who support communities, jobs and the economy.
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14|Retail News|May 2020|www.retailnews.ie
Forecourt Focus: News
Circle K launches Ireland’s largest free grocery home delivery service CIRCLE K is now offering a new free grocery home delivery service across its network of company owned service stations nationwide. The first fuel and convenience retailer in Ireland to launch a home delivery service of its kind, Circle K created this service to make customers’ lives a little easier during the Covid-19 pandemic, and to support local communities, particularly elderly or more vulnerable customers who are not able to visit Circle K stores themselves. All products available in store can be ordered, prices available on the Circle K Ireland website (www.circlek.ie/ home-delivery). No minimum spend is required for free delivery, which is currently available to all locations within 3km of Circle K company owned sites in Ireland; Circle K Express service stations are excluded from the service.
Circle K’s new next day service will deliver in-store products to customers who cannot visit Circle K stores during the Covid-19 pandemic.
our customers across Ireland,” said Joanne D’Arcy, Senior Director of Retail Operations, Circle K Ireland. “Our new service will become the largest free grocery home delivery service in Ireland, and I would like to extend my thanks to our staff across the network who have volunteered their time to ensure those who are cocooning are in a position to purchase the essential items they need. “Since launching the service initially in Dublin, we have already seen the difference it has made to keeping vital connections open with regular customers who may feel isolated during this difficult period, and we look forward to connecting with many more customers across the country over the coming weeks.” For more information on Circle K’s new home delivery service as well as a full list of participating sites and product listing, visit www.circlek.ie/home-delivery.
A vital lifeline The service, which initially launched in Dublin and has now been extended to all Circle K company owned service stations across Ireland, ensures that those who need to stay at home most at this time can do so by avoiding in-store shopping. It also keeps a vital lifeline open for cocooning customers who may feel isolated as the lockdown continues. Customers can place orders for in-store products such as grocery essentials, confectionery, hygiene products and phone credit with Circle K by calling (01) 2028819, seven days a week from 8am to 6pm, and avail of next day home delivery. Prioritised delivery slots will be made available to elderly and vulnerable members of the community and customers are encouraged to pay for deliveries by card over the phone where possible, but can also pay by cash on delivery. Relatives and families of those who are cocooning can also call in and Circle K will deliver the order to their door the next day. Connecting with customers “At Circle K, we feel it is important that we play our part to be here for Ireland more than ever during this challenging period, which is why I am delighted to announce that we have launched a new national service that will allow us to deliver to
Joanne D’Arcy, Senior Director of Retail Operations, Circle K Ireland.
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16|Retail News|May 2020|www.retailnews.ie
The Retail News Interview
A safe pair of hands Dr Pamela Byrne, CEO of the Food Safety Authority of Ireland, explains what the Covid-19 pandemic has meant for the organisation, praises the efforts of grocery retailers and reminds food suppliers of their obligations if supply chain shortages mean a change of ingredients or packaging. LIKE every other organisation in the country, the Food Safety Authority of Ireland (FSAI) has had to change the way it operates in the current environment. The Covid-19 pandemic has brought sweeping changes to the way we work. But for most of us, that work doesn’t just involve ensuring that the food on supermarket shelves and delivered by our local take-aways is safe to eat. Even in the midst of an international pandemic, the FSAI’s mission remains the same: to ensure safe and trustworthy food for everyone. Its CEO, Dr Pamela Byrne, is proud of the “hugely committed team”, who “really pulled on the FSAI jersey” in difficult times. “I’ve been amazed by the agility and flexibility of the team to mobilise and work through all this,” she says. “It’s not just the FSAI, though: that has been the case not just in the civil and public service but right across the private sector, companies who have changed their business model and production systems overnight.” The FSAI had been preparing for the Covid-19 pandemic for some time before it arrived on our shores, the CEO stresses: “We had been watching what was going on around the world, listening to our counterparts across Europe and listening to Government, and we started to plan internally for a situation if the Government indicated that we would have to work in a different way. We were about 24 hours from really getting it nailed down when the Taoiseach made his announcement on Thursday, March 12, regarding schools closing, so like every organisation, a significant cohort of staff were effectively unavailable on the Friday because they had to look after their children. “I asked the staff who could come into the FSAI to please do
so – we respected social distancing and took every precaution we could in terms of hand sanitisers etc. But we were also working hard to make sure everyone was technology-enabled and so that when they left the business on that Friday afternoon, they could work from home. We now have 100% of the organisation working from home.” A fundamental shift One of the big challenges was to ensure that access to the FSAI system from outside the building was secure and did not compromise any data or sensitive information. But the pandemic has meant a more fundamental shift in the way the Authority operates. “We had to work out what the pandemic and its effects mean for the FSAI as an organisation,” explains the CEO. “How do we still deliver on our vision of safe and trustworthy food for everyone? We had to take our mission and our strategic goals and embed them into a new way of working, with everyone working remotely. We had to move from an organisation that was built around a regular Monday-Friday, 9-5, to become a task-based organisation; figuring out what needs to get done, how we get it done and in what timeframe. We have navigated that successfully and the management team are working really well with both the senior leadership team and their individual teams.” Covid-19 Incident Response Team The FSAI set up a Covid-19 Incident Response Team within the organisation. “That was about coordinating the business activities that are necessary to maintain business continuity
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The Retail News Interview during this time,” Byrne explains. “We meet weekly and more regularly if we need to. We problem-solve as a team, highlighting what is working and what isn’t, and then communicate out to the broader organisation any key decisions that impact them and how they work.” The Incident Response Team aims “to identify potential issues and risks for food safety and food integrity and use the information at our disposal to work out what actions might be required to minimise, to mitigate or even remove those risks to food safety or to the integrity of the supply chain. It’s about monitoring what is happening, both globally and locally, and responding accordingly.” The FSAI coordinates the enforcement of food law via service contracts with a number of state agencies, including four who are involved in food inspections: the Department of Agriculture, Food & the Marine; the HSE, via its Environmental Health Officers; the Sea Fisheries Protection Authority; and the Local Authority vets, who carry out inspections in smaller meat processing plants and slaughter-houses at local level. “We have been working with them to understand how their business continuity plans will ensure that we can
collectively achieve our vision of safe and trustworthy food for everyone. We need to understand the constraints they are working under to recognise if that could lead to increased food safety risk or issues within the supply chain that could compromise the integrity of that supply chain. “We have identified a team of essential workers, who carry out essential functions within the FSAI and the agencies we work with; for example, if there was an outbreak of foodborne illness during this time, we need to ensure we could go out and investigate or engage with the businesses where that might be an issue. We have prioritised that and made sure that we have the systems to back that up internally.” Food inspections amid the pandemic The pandemic has meant that a lot of businesses are either closed or are not operating at full capacity, including sea fishing and foodservice in particular, which has greatly reduced the number of inspections needed. “It’s hugely disappointing for business owners and for society in general but the protection of public health remains the priority,” Byrne notes. “A lot of businesses have closed
their doors, which has had a knock-on effect on the number of inspections that have to take place. Those businesses are suffering and it is very difficult for the business owners and employees, but what they are doing is helping to take pressure off the public health system by minimising the risk of transmission within their businesses. I hope over time, with the relaxation of the restrictions, that those businesses will survive and that we in the FSAI can help them in terms of providing them with guidance around food safety in the reopening of their businesses.” The FSAI are also examining where they can be flexible, albeit within the legal framework, in overseeing the delivery of a robust inspection system. “We are working with the various agencies on that in terms of how they can still deliver effective inspection without putting their own staff at risk or putting others at risk. That is a difficult thing to navigate because we still have a job to do. It is always important to have high standards of food safety and food integrity within food businesses, but even more so now.” With our health service already under severe pressure due to the Covid-19 pandemic, the last thing it or the country needs is another health
If food producers cannot get their normal supply of ingredients or of packaging or other products they might need, they need to assess the risk associated with bringing new products or processes into the business, including Good Hygiene Practice, HACCP and allergens, and their food safety management system must be adapted to reflect any changes.
18|Retail News|May 2020|www.retailnews.ie
The Retail News Interview emergency, such as an outbreak of foodborne illness: “We are making sure that the crisis plans we have in place within the FSAI and the inter-agency plans and protocols that we would use if we had an outbreak of food-borne illness or we had to deal with an incident of food contamination are fit for purpose.” Mapping the supply chain The current pandemic has “required every food company to look at its business and how it operates, to take the advice of Government, to put in place the measures that are required to protect workers’ health. The Government’s National Emergency Plan rightly recognised that food is a critical supply chain that needs to be maintained. So you then start to look at the critical parts of that supply chain,” Byrne notes. Many Irish food businesses had already put huge work into mapping their supply chains in recent months and years to deal with the spectre of Brexit, work which has actually benefitted them amid the current pandemic. “It has helped them to become more flexible when it comes to their supply chain, which has been a positive,” Byrne notes. Retailers should be applauded Retailers too have had to change the way they operate. Indeed, grocery retailers were the first to contact the FSAI when the pandemic began to affect life in Ireland. “Retailers were first out of the blocks in terms of contacting us about what the pandemic would mean for them. Very quickly, we started to get a sense of retailers’ concerns and what were their potential solutions to resolving those concerns,” Byrne recalls. “How were they going to provide a safe environment for consumers to shop to access critical supplies? Once we understood and learned from retailers what their particular issues were, we very quickly started to develop a set of FAQs on our website, and that has evolved and developed as we get new information. “For example, some retail groups operate a number of different types of stores and need to provide advice to all those stores. They can point their stores to the FSAI website, which has the advice they need to operate safely.” The CEO believes that Ireland’s retailers have really stepped up to the plate in their response to Covid-19: “Retailers should be applauded for the fantastic work they are doing. Their real commitment to ensuring that there is a supply of food, that the supply of food is safe and the work they are doing to maintain the diversity of food products on
“
Retailers should be applauded for the fantastic work they are doing. Their real commitment to ensuring that there is a supply of food, that the supply of food is safe and the work they are doing to maintain the diversity of food products on the shelf is incredible. It is maintaining some level of normality for consumers at a time when nothing is normal.
”
the shelf is incredible. It is maintaining some level of normality for consumers at a time when nothing is normal.” She warns against complacency, however, as the weeks go by: “As the retail sector continues to respond to this, it is important that their staff maintain their understanding of food safety. If they have new staff coming in, it’s vital that those staff are trained in food safety and hygiene. We have so many resources on our website regarding food safety and hygiene and we have significantly increased our engagement with social media since the middle of March.” The FSAI has seen a surge in followers on social media and visits to its website since the start of the pandemic, including almost one million hits on fsai.ie. The CEO stresses that stakeholder engagement is hugely important to the FSAI, who engage with different parts of the industry through a host of industry forums, including a retail forum, which allows the organisation to engage with Ireland’s biggest retailers on a regular basis. “It came into its own in the current pandemic in terms of getting information from retailers and communicating back to them what we thought was the right
way to proceed,” the CEO explains. “We took advice from our counterparts across Europe, from the World Health Organisation, as they developed guidance for food businesses and for food regulatory authorities across the world.” Communicating the facts The most important thing for the FSAI in the Covid-19 pandemic was to “communicate the facts about the virus with respect to food safety,” Byrne stresses, “that we are communicating to the right audiences and ensuring they have the right information and advice that they need to operate safely. “We wanted to take off the table the potential connection that people may make between the virus and its potential risk to food. There is no scientific evidence that there is any risk associated with the virus and food safety. It’s really important for consumers to have trust in the safety of the food supply and not feel anxious about purchasing food.” The FSAI advice line has been incredibly busy, with close to 200 Covid-19 related queries. Many of those calls were from those in the restaurant sector who are trying to change their business to a take-away or delivery service, but some have been from food manufacturers who have encountered difficulties with sourcing certain supplies and may have to substitute ingredients. “What we are saying to those businesses is, ‘the legal responsibility to put safe food on the market is yours; our job is to make sure we can verify that’. The verification is done in a number of different ways and a lot of it relies on inspections, but we are relying on and trusting industry to do the right thing here. In the main, we have had very good experiences with the industry, who are doing a great job. You will always have a few businesses who will decide to take short-cuts and our message to them is that you should never be complacent about food safety. “When you are not able to get your normal supply of ingredients or of packaging or other products you might need, you need to assess the risk associated with bringing new products or processes into your business; that requires Good Hygiene Practice and HACCP to be considered and your food safety management system to be adapted to reflect any changes.” Allergens and allergen labelling are another concern: “If you are using different ingredients, different suppliers or you are making up your product using a different recipe, you need to be absolutely sure that you are not introducing new allergens into the
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The Retail News Interview
Dr Pamela Byrne, CEO, FSAI: “As the retail sector continues to respond to this, it is important that their staff maintain their understanding of food safety. If they have new staff coming in, it’s vital that those staff are trained in food safety and hygiene.” product, or if you do, you need to communicate that on the packaging or labelling.” Navigating uncharted waters These are uncharted waters for food suppliers, retailers and regulatory authorities alike, Byrne admits: “We are doing our best to help businesses navigate their way through this. We are working with our colleagues in other European regulatory authorities and with the European Commission.” Indeed, the FSAI, along with other European food regulatory bodies, has asked the Commission to provide guidance on a number of issues, including a potential labelling issue which may arise as a result of supply chains being disrupted as the pandemic continues to have an effect. The FSAI website has a dedicated page for Covid-19 and food (www.fsai.ie/faq/coronavirus.html), which covers a variety of topics, including if the virus can be transmitted through food (no reported cases have been linked to contamination of food), advice for food workers, advice on open food displays, what to do if a food worker tests positive for Covid-19, what to do if you encounter a supply chain problem caused by the pandemic, and many more. Indeed, the FSAI’s FAQ’s page has been used as a template for other European food safety agencies, who have translated and adapted it for their own markets. The FSAI has worked extensively with FoodCloud in recent years and established guidelines on the handling and distribution of food parcels and other donated foods. In the current pandemic, many community groups and charities are coming together to help deliver food to vulnerable people
in their communities and the FSAI guidelines can be hugely helpful in terms of ensuring that food is safe. The organisation is ready and willing to engage with any group who has queries in this area: “We have loads of resources. Please ask us if you need additional guidance. We are happy to communicate directly with these groups to ensure any food donations are safe for consumption.” The FSAI also regularly held free ‘Breakfast Bites’ in its office, where interested parties could access free information about food safety, from setting up a food business to the latest legislative developments. Given the current restrictions, such meetings are no longer possible, but the first FSAI webinar took place on May 12 with the theme, ‘Food Safety: Back to Basics’, and proved hugely successful as the organisation continues to reach out to food businesses. Minimising the risk The number of food alerts across Europe, including Ireland, has reduced greatly in the current pandemic, but Byrne feels that as things eventually get back to some kind of normal, those numbers will rise again. “Our biggest concern is that things the industry does now may potentially and unintentionally lead to food safety issues in the future,” she concludes. “We want to make sure the industry ensures food safety and integrity is a priority. I appreciate it’s difficult but the one thing that is really important is to keep food safety and food integrity as a priority in your business and understanding that by doing so you are minimising the potential impact on public health services, which are already constrained in dealing with the pandemic.”
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Retail Ireland: Monthly Update
REOPENING MUST HIT RIGHT NOTE IF RETAIL IS TO REBOUND AS a country, Ireland has been through the wringer and the past weeks have taken their toll on a great many people. With people falling ill and others losing their jobs or businesses, this is an unprecedented period for us all. The retail sector in the main is in a state of suspension; with only a number of designated essential stores remaining open and trading. Most retailers are now looking at if they will reopen and what the trading conditions will look like once some of the more onerous containment measures are lifted. For many, this will be a very difficult task. We in Retail Ireland have been in consistent contact with our members and the relevant Government officials on the nature of a phased reopening of the Irish economy. If the retail sector is going to rebound in a robust way, a certain number of key supports must be put in place to ensure this. While Government has responded with a varying range of support measures, particularly in relation to short-term employment and temporary unemployment, many non-food businesses with no, or almost no, income are still facing monthly rent bills, and no prospect of being able to pay them. We have called on the Government to urgently consider action to avoid a wave of permanent closures of businesses whose disappearance will have an immediate negative effect on the rest of the economy, on employment, on local communities and town centres. A partnership approach We need a partnership approach to support vulnerable but viable businesses. Commercial landlords and retail tenants must act in solidarity and dialogue to find mutually beneficial solutions to the present challenges facing shops closed during this period. This must be supported by a phased reopening strategy from Government, that safeguards public health, while also facilitating the incremental restoration of normal economic activity. The retail sector recognises that it may be difficult for some of the measures to be implemented but new and innovative methods will need to be developed by Government with input from all concerned, be it tenant and landlord, or retailer and their local authorities. When it comes to rates, for example, if very little is done in the area of rates alleviation and businesses do not re-open, the very nature of our town centres will be severely diminished, with vacant lots becoming a mainstay in the high street. The development and renewal of town centres was at the forefront of many retailers’ minds before this crisis and they were working diligently with their communities and local authorities to achieve this. Retailers are the last people who want to see a mass
exodus from the high street but this could become a reality if some supports are not put in place. A strategic approach to commercial rates Along with local authority rates, the situation with commercial rents is an issue that will need underpinning in the reopening phase. The majority of retail categories remain closed and have been closed for a number of weeks. These are weeks where turnover has been at zero. With no income and mounting bills, retailers are feeling overwhelmed. Forbearance from landlords has been welcome in the instances that it has been offered, but a state-backed regime on commercial rents is vital for the wellbeing of the sector. A hands-off approach is not going to be enough in this instance; Retail Ireland is asking Government to implement a number of strategic approaches. It will take more than just fiscal stimulus to find a way through this; a number of avenues need to be looked at, including forfeiture freezes and mediation. Retail has been hit hard by this crisis, but the sector is dynamic and innovative. Where retailers can help themselves, they will do this, but when help from Government is needed, that help needs to be robust. As we move into a phased reopening, the health of employees and the public will be at the forefront of retailers’ minds. Providing good jobs and consumers’ needs will continue as long as retailers are able.
Tel: 01-6051558 www.retailireland.ie Need more? For more information about what we do and how your retail business can benefit from our unique services and supports, please visit us at www.retailireland.ie.
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Confectionery
Nestlé launches new Smarties Bites New Smarties Bites from Nestlé Ireland Confectionery are a completely new way to enjoy one of Ireland’s favourite confectionery brands. THERE is now a completely new way to enjoy the colour and fun of Smarties, one of Nestlé’s best-loved brands - with the launch of Smarties Bites. Smarties Bites are discshaped milk chocolate sweets, each containing mini Smarties and are available in both a 32.5g single bag and a 90g sharing bag.
innovations to try. “Our Smarties Bites offer all the fun, colour and crunch of Smarties, enveloped in a delicious smooth milk chocolate bite. It is Smarties reimagined, and we are tremendously excited to introduce this new addition to the family. We hope fans love them as much as we do!”
Exciting innovation “We know that Smarties hold special memories for so many people, and they are much loved for their bright colours, taste and texture,” noted Maria McKenna, Marketing Manager for Nestlé Ireland Confectionery. “At the same time, consumers tell us they like their favourite brands to keep things fresh, with exciting
Driving incremental sales Smarties Bites go on sale over the next few weeks in all major retailers and will appeal to consumers of all ages. With the launch of this exciting new innovation, the Smarties brand is set to continue driving incremental sales in both the singles and sharing categories and building on its 2019 market share growth of +13.1%.
Consumers are sure to love new Smarties Bites in a 90g sharing bag, perfect for sharing the new way to enjoy Smarties.
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It is Smarties reimagined, and we are tremendously excited to introduce this new addition to the family. We hope fans love them as much as we do!
Smarties Bites are disc-shaped milk chocolate sweets, each containing mini Smarties.
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Covid-19 Pandemic
Food shopping in a
post-pandemic world
Gavin Rothwell, Food Futures, and Peter Rigney, TAP Creations, examine some of the changes we could see in the Irish grocery market after the Covid-19 pandemic. TAP Creations and Food Futures Insights have created a report to highlight their thinking around the future food shopping experience. Here, report authors Gavin Rothwell (FFI) and Peter Rigney (TAP) build on some of the key report themes to highlight some of the changes this could bring to the Irish market. 1. Planning and timing will grow in importance Grocery shopping has become a lot more complicated over recent weeks. The simple idea of nipping out to the local shop brings with it a whole new set of considerations and concerns. Based on guidance and practicalities, we’ve reverted to the shopping patterns of our parents or grandparents, when activities were often set around the core component of the weekly shop. We’re not sure that too many of us are loving this, though undoubtedly some of us will be. But the challenge is that the practicalities that are forcing us into these patterns might remain with us for a while.
Though some of the factors that have caused this are already easing - availability is already much improved across most lines - others, such as the need for social distancing and the desire to keep ourselves from excessive close contact with others, appear unlikely to change in the short or even medium term outlook. We’ve seen some interesting ways to help customers with this - Spar Aliment in Spain for example uses real-time data through a traffic light system to show on its app how busy each of its stores are. Meanwhile Buehler’s Fresh Foods, an Ohio based supermarket chain in the US, uses its website to show how busy they expect individual stores to be at certain times, based on actual customer traffic levels of the previous week. 2. Digital will play a bigger role in the shopper journey We also expect to see other digital tools used more in the new shopper experience. Virtual queues, for example, may be needed to moderate customer flow at peak times in more heavily traded stores, while controls such as digital entry screens, as have been introduced by Aldi in Switzerland, may become a more common feature. With many stores right now requiring a permanent staff member on the door, this type of
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Covid-19 Pandemic points of difference, and better at reinforcing them. This is the same story that many suppliers have heard for several years, but its importance has escalated dramatically over recent weeks. The value of a strong story and a strong marketing element to bring this to life, in businesses of all sizes, appears set to grow. For many reasons, we’re hoping this will encourage more retailers to develop more unique specialisms rather than taking out points of difference to focus on the same core range. 4. Local, community and seasonal will grow in importance We’re expecting higher community involvement and awareness from consumers to be a legacy of the current The Shops App by Aisle 411 is an interactive shopping app that flags where to find crisis. Those businesses best items in-store and can display product locations on store planograms. able to capture and reflect this, whether retailers, cafés it’s also about the impact of complicating or food and drink suppliers, will be system could offer a fairly rapid payback categories on increasing shopper dwell the ones that resonate best with local for retailers. A more advanced version time in-store. shoppers. from Ombori, where customers check This is a challenge and puts Ireland is already a best-in-class in via QR code and can see at all times global market when it comes to pressure on many suppliers to justify how many customers are in-store, is showcasing local-ness. So it’s about their position on-shelf more than ever. currently being trialled in Sweden. raising the bar further and pushing that If you’re a supplier who isn’t a market Another aspect to consider is the community involvement deeper than leader in your category, then you’ll time spent in-store. With restricted ever before. Stores such as Amsterdam’s need to be clearer than ever about your capacity, time spent in store is very much money. So if retailers can shorten the time customers spend in-store without impacting transaction size, they’ll likely want to do it. There are many ways through which this can be achieved. Simpler layouts and better interior comms will play a role, but tech can help here as well. One example of this is the Shops App by Aisle 411, an interactive shopping app that flags where to find items in-store: www.aisle411.com/shops. The Shops app can display product locations on store planograms, something it currently does across Walgreens stores. This ability to prelocate products in-store could be a valuable way of relieving congestion in-store, and even more so if this functionality can be combined with an availability measure. 3. Expect more curated ranges Simply put, the additional cost of carrying extra lines on shelf will grow. This isn’t just about the complexity of handling the product through the supply chain and getting it onto the shelf, but
Local, seasonal and community will grow in importance.
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Covid-19 Pandemic Landmarkt offer pointers here, for how it celebrates its suppliers as ‘food heroes’ and embraces them as part of the fabric of the store. So does the knowledge and passion that oozes from the traders at London’s Borough Market. Ultimately it points towards retailers getting closer to key suppliers and recognising the mutual product and community strengths they can bring. It could be, for example, that a store celebrates a local supplier, of whatever scale, as part of its instore proposition; a kind of store partnering initiative that could not only help retailers show their local connections, but also help suppliers better showcase their wares and local community focus. 5. Consumers are finding new ways to conduct grocery shopping – some of these will inevitably stick The amount of innovation in the market over the past weeks has been as much as we’ve seen in some decades. And we’ve seen some fantastic pivoting examples - the Sprout organic veg box delivery, Deli Lites and Simply Fit Food’s shift in focus to direct-to-
The organic vegetable box from Sprout: a fantastic example of innovation amid the current pandemic.
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Retailers and food-to go operators have a great opportunity to redefine communications around empathy with consumer concerns as they look to differentiate and thrive in a trading environment with a whole new set of ground rules.
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Amsterdam’s Landmarkt celebrates its suppliers as ‘food heroes’ and embraces them as part of the fabric of the store.
consumer deliveries, and the Asador/ Prado home meal kits available at Fresh the Good Food Market are just some of the great examples we’ve seen. And these are reshaping food buying experiences, creating a landscape in which consumers are perhaps less wedded to buying all their groceries from supermarkets. This could be a key longer term online shift that we’ll see in the market, with consumers getting more used to ordering different products, or the ingredients to create a different experience, at home. This is a double-edged sword if you’re running a grocery store: work with the right partners, and you could meet
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Covid-19 Pandemic more food missions than ever before, back the wrong ones or do nothing, and risk being cut out of some missions entirely. Defining points of difference Better defining points of difference will be key to making lasting connections. We see several aspects for consideration: 1. Create customer rapport at a distance Approaches to in-store counters, demonstrations and tastings will likely need to be revised, but dropping these risks creating greater customer separation. These are key to making and developing connections: reverting to a strategy of simply putting product on-shelf will not be enough. 2. The right balance of social distancing Combining the right balance of physical distancing and social engagement will be critical, to ensure customers feel safe and welcome. But at the same time for retailers, cafés, pubs and restaurants, reassurance that social distancing protocols are being adhered to will be key. 3. Empathy with customer concerns Retailers and food-to-go operators have a great opportunity to redefine communications around this as they look to differentiate and thrive in a trading environment with a whole new set of ground rules. An in-depth customer understanding, and a demonstration of this back to customers, will emerge as an increasingly critical hallmark of success. Getting the right balance of online and offline communications will be key, and using online to support the physical experience in-store, whether Advertising from Burger King in France showed customers the ingredients to buy from supermarkets to pre, mid, or post-shop, looks set to be one key legacy of the create their own BK style product at home. current global crisis.
About the authors:
GAVIN Rothwell has over 15 years’ experience analysing and consulting into the food retail and food-to-go sector. As the founder of Food Futures Insights, he brings expertise and experience from leading IGD’s retail safari and study tours programme in Europe, alongside setting up and leading IGD’s global food-to-go insights stream. Gavin closely tracks major trends and strategies, across both retail and food-to-go, and uses this insight to help FFI’s customers make better strategic decisions. He is an experienced public speaker and regularly presents at events. In his time, he has also led the grocery and home-related goods retailing team at Verdict Research and spent time working as an FMCG/ CPG consultant analyst at Datamonitor. See www.foodfuturesinsights.com for more information. Peter Rigney’s background is in store-design and he has collaborated with some of the leading retailers in Ireland to create award-winning stores. Peter is part of TAP Creations, a creative team of storytellers, specialising in strategy, branding and environmental design. Peter approaches design from the holistic perspective of physical interaction. His design process is about understanding people behaviour and how they engage with the brand environment. He transforms insights into tangible experiences that make a genuine connection and encourage communication. This is core to TAP’s design ethos and ultimately its clients’ success. Peter and his team are committed to this ethos and develop ‘real’ solutions from individual products through to full store design. See www.tapcreations.ie for more information.
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Covid-19 Pandemic
Government supports for companies affected by Covid-19 There are a range of business supports available for companies who have been affected by the Covid-19 pandemic, including one designed specifically for retailers to upgrade their online capability. SINCE the Covid-19 pandemic affected the country in midMarch, the Irish Government has announced a raft of new Covid-19 supports for businesses. While the initial focus was on employees, including enhanced illness benefit and the Temporary Covid-19 Wage Subsidy Scheme, supports have grown to include a host of grants and other business supports, including the expansion of two SBCI loan schemes by €450m (€250m in working capital and €200m in long-term loans), the expansion of microfinance funding, the ‘warehousing’ of tax liabilities for a period of 12 months after recommencement of trading, and a host of brand new schemes. Enterprise Ireland is to operate and administer a number of these new funding supports, including the Online Retail Scheme and a new €180m scheme for businesses impacted by Covid-19. Online Retail Scheme The Department of Business, Enterprise and Innovation (DBEI) proposed the Online Retail Scheme in response to the Covid-19 crisis and the urgent need for retail companies to achieve a step change in online capability. It is a competitive fund which will be administered by Enterprise Ireland on behalf of DBEI with a total fund size of €2m. Applications for funding are invited through a public call for submission of projects between April 29 and May 27. “The Covid-19 pandemic has put exceptional pressure on the retail sector in Ireland and the Online Retail Scheme
funding will help support retailers who have found they will have to rapidly adapt their approach to enable online ordering and delivery to meet the new reality of home working and physical distancing restrictions,” said Julie Sinnamon, CEO, Enterprise Ireland. The purpose of this fund is to enable Irish-owned retailers to enhance their digital capability and to develop a more competitive online offer, that will enable an increase in their customer base and build a more resilient business in the domestic and global marketplace, both online and offline. Successful applicants will be awarded funding to support a maximum of 80% of the project eligible costs, with a maximum grant of €40,000. Typical elements involved in developing a sophisticated and transactional online presence include research, consultancy costs for strategy development, implementation and training. Who can apply? The applicant must be an Irish-owned retail enterprise that had 10 or more employees on or before February 29, 2020, and has the potential to sustain or create jobs, generate growth in online transactions and with an ambition to internationalise their business in the future. An application must be submitted in the name of a company registered with the Companies Registration Office and incorporated in the Republic of Ireland at the time of application. The business must also: • have an existing online presence (e.g. website or social
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Covid-19 Pandemic In-depth analysis of the company’s current and potential online presence and capabilities, target audience and brand. This research should help the applicant make informed decisions about e.g. optimisation of online marketing channels, web functionality, payment systems specification, catalogue presentation, supply chain management, consolidated inventory systems, order fulfilment and consumer experience.
The Online Retail Scheme was designed to enable Irish-owned retailers to enhance their digital capability and to develop a more competitive online offer. media); • have a retail outlet and derive the majority of revenue from the retail outlet(s). Previous applicants of the Online Retail Scheme who were unsuccessful will be eligible to re-apply with a modified proposal under this call. Successful applicants in previous calls are eligible to re-apply under this call, once they have fully completed the project funded, fully claimed all eligible costs and propose a clearly different project to that undertaken under previous calls. The Scheme is not open to the following: 1. Applications which do not propose company expenditure on the project of a minimum of €12,500 (grant of €10,000) will be considered ineligible (the grant will reimburse up to 80% of eligible expenditure); 2. Franchisees of retailers for whom the franchisor provides material online support; 3. Projects which do not propose significant additional functionality to the online presence of the applicant company will be considered ineligible; 4. Applicants who were approved any other State or EU funding for the project for which they are seeking funding;
5. Companies active in the primary production of agricultural products, fishery and aquaculture; 6. Companies active in the provision of hospitality and leisure services (e.g. hotels, restaurants); 7. Companies active in the sale or distribution of alcoholic beverages where consumed on the retail premises; 8. Applications which include or relate to activities that Enterprise Ireland considers as ineligible or as involving an unacceptable reputational risk. Ineligible activities include activities relating to: the gambling sector, including ‘gaming’ (as defined in the Gaming and Lotteries Act 1956), adult entertainment, tobacco products and cannabis-based products which are not authorised as medicines; 9. Companies which have previously availed of funding for an e-marketing improvement assignment from Enterprise Ireland or which are eligible for this grant from Enterprise Ireland; 10. Companies which have already reached their De Minimis aid limit. Eligible Activities Typical elements involved in developing a sophisticated and transactional online presence include:
Research:
Strategy development: • Development of a written digital strategy and a roadmap for implementation, including resource and business process considerations; • Identifying how the company’s value proposition should be demonstrated online, what aspects should be emphasised and how best to present this to online customers; • Ensuring that the company’s online presence is being fully utilised / optimised to fulfil its overall potential, supporting the overall business strategy; • Consideration of omnichannel offering (including marketplaces and social media). Implementation: • Optimising the company’s online presence to ensure domestic and international visibility (e.g. web enhancement and localisation, associated business process enhancements, search engine optimisation etc.); • Enhancing related “back end” systems (e.g. product presentation, supply chain management, systems integration to improve consumer experience etc.). Costs Successful applicants will be awarded funding to support a maximum of 80% of the project costs. The minimum grant amount payable is €10,000 under this scheme. Therefore, applications which do not propose company expenditure on the project of a minimum of €12,500 will be considered ineligible (the grant will reimburse up to 80% of eligible expenditure). All eligible costs are required to be directly related to the implementation of the work programme. Eligible costs include: • Salary costs of a senior project champion (manager level or above) in the applicant company to work with an external service provider on this project. The costs to support
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Covid-19 Pandemic the salary of the project champion must not exceed the external service provider costs. A maximum of one internal champion per company is eligible for salary costs; • Fees of established external service provider(s) to develop a digital strategy; • Fees of established external service provider(s) to further develop / enhance the company’s transactional website or online presence. The grant must be used to introduce additional functionality. Training Course fees are not eligible, however in-house training provided by an external provider to enable a company develop and maintain a robust online retail operation is eligible. This could include training for CMS, eMarketing, catalogue management, e-commerce systems, SEO, etc. Ineligible costs include: • Upgrades to existing online channels that would happen anyway or could be considered business as usual; • The purchase of hardware or ‘off the shelf’ software package licences or subscriptions e.g. for Customer Relationship Management (CRM); • The funding of online advertising campaigns e.g. pay per click campaigns. • Any expenditure incurred prior to the close of the Call at (May 27) is not eligible for support. For more information on this, visit https://www.enterpriseireland.com/en/funding-supports/Online-Retail/Online-RetailScheme/ Sustaining Enterprise Fund Another fund, the Sustaining Enterprise Fund was recently approved by the European Commission in line with EU State aid rules, to provide financial support to Irish companies
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I know that this is a worrying time for businesses and I want to assure them that my Department and agencies are working on their behalf to develop and deliver a range of supports to help them through this rapidly evolving situation. I am hearing from many businesses that they are very concerned about their cashflow in the coming weeks. I want to reassure them that there are a number of schemes that can help them meet their shortterm working capital and liquidity needs. – Heather Humphreys TD, Minister for Business, Enterprise and Innovation.
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The Government has put in place a range of supports to help Irish businesses through the Covid-19 pandemic. affected by the Coronavirus outbreak. The scheme, which was approved under the State aid Temporary Framework to support the economy in the context of the Covid-19 outbreak, is available to assist companies in the manufacturing and internationally traded services sectors who have suffered, or expect to suffer, a 15% or more reduction in turnover or profits or an increase in costs as a direct result of Covid-19. Funding of up to €800,000 will allow eligible businesses to access the necessary liquidity and funding to sustain their businesses in the short to medium term and contribute to the recovery of the Irish economy. The Sustaining Enterprise Fund will be available to companies who are unable to access adequate funding from the market, financial institutions or the Strategic Banking Corporation of Ireland (SBCI). “Enterprise Ireland client companies have already seen a significant impact on their businesses from Covid-19,” noted Julie Sinnamon, CEO, Enterprise Ireland. “While their immediate focus has been on dealing with the welfare of their employees, they are also being impacted by a collapse in demand in certain sectors, supply chain disruption and cashflow challenges. I am pleased to say that the new Sustaining Enterprise Fund, which provides up to €800,000 in repayable funding, is now open for businesses who are unable to raise adequate funding from the market.” Other supports available Minister for Business, Enterprise and Innovation Heather Humphreys TD also recently announced other supports, also available from Enterprise Ireland: • A new Business Financial Planning Grant to the value of €5,000 to assist companies to develop a Business Sustainment Plan and to engage the services of an approved Financial Consultant when applying for funding; • A new €2,500 Lean Business Continuity Voucher to help companies quickly access expertise in reviewing and optimising operations at a time of crisis to identify the key measures needed to ensure continued operations. The €5,000 Covid-19 Business Financial Planning Grant will help companies to develop a Business Sustainment Plan. The grant will support companies with 100% funding to engage the services of an approved Financial Consultant to develop this plan for use when applying for bank or investor funding and when developing their own medium-term financial strategy.
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Covid-19 Pandemic Enterprise Ireland will work with these companies on a one-toone basis to support the implementation of the plan. The €2,500 Lean Business Continuity Voucher is a training project of up to three days carried out by an approved external advisor/trainer directly with an eligible company. It is expected that the three days will be spread over a longer period so that there is time for the company to implement changes between sessions. It is expected that this support would be delivered online in most cases. The project should focus on the operations of the company in terms of; • Crisis response where appropriate; • Sustaining Operations including process re-engineering; • Planning for resilience post crisis. “Ensuring continued operations during this time is challenging for companies and our new Lean Business Continuity Voucher will help companies access external expertise to put in place crisis management support and training to ensure that processes can be established to ensure business continuity,” said Julie Sinnamon. The full range of Enterprise Ireland, Local Enterprise Office (LEO) and Údarás na Gaeltachta grant and advisory supports continue to be available to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness. For further information, visit www.enterprise-ireland.com/ businessresponse. Supports: a quick guide Other supports available from Government include: Credit Guarantee Scheme The €2 billion Covid-19 Credit Guarantee Scheme will provide an 80% guarantee on lending to SMEs until the end of this year,
for terms between three months and six years. SMEs should go directly to the banks in the Scheme, and the guarantee can be used for a range of lending products between €10,000 and €1m. Trading Online Voucher Scheme A new Trading Online Voucher Scheme is available through Local Enterprise Offices to help small and microenterprises get online. The voucher is worth up to €2,500. A second voucher of up to €2,500 can be sought once the first has been successfully utilised. See localenterprise.ie for more information. Pandemic Stabilisation and Recovery Fund A €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund (ISIF), will make capital available to medium and large companies on commercial terms. See isif.ie for more information. Microenterprise loans Microenterprise loans of up to €50,000 are available from MicroFinance Ireland for sole traders, partnerships and limited companies with less than 10 full-time employees and annual turnover of up to €2m. See microfinanceireland.ie for more information or contact your local enterprise office (localenterprise.ie). Future Growth Loan Scheme Longer term loans from €100,000 to €3,000,000 are available for SMEs under the Future Growth Loan Scheme operated through the SBCI. The loans have a maximum interest rate of 4.5% and the first €500,000 borrowed can be unsecured. See sbci.gov.ie for more information. Business Continuity Voucher A new Business Continuity Voucher is available through Local Enterprise Offices for businesses that employ up to 50 people. The voucher is worth up to €2,500 in third party consultancy costs and can be used by companies and sole traders to develop short-term and long-term strategies to respond to the Covid-19 pandemic. See localenterprise.ie for more information. Restart Fund for micro and small businesses A Restart Fund of €250m is being created for micro and small enterprises. It is intended that the fund will operate through a system of rebates/waivers of commercial rates payments from 2019. Companies will receive a total amount equivalent to no more than their 2019 rates bill and there will be a cap per business of €10,000. Working Capital Loan Scheme Loans from €25,000 to €1.5m are available under the Working Capital Loan Scheme, operated by the Strategic Banking Corporation of Ireland (SBCI). Loans are available to viable micro, small and medium sized enterprises (“SMEs”) and Small MidCap enterprises (fewer than 500 employees), who meet the eligibility criteria. The loans have a maximum interest rate of 4% and the first €500,000 borrowed can be unsecured. See sbci.gov.ie for more information.
The Government, through the Department of Business, Enterprise and Innovation has delivered a range of supports for business.
Finance in Focus grant A Finance in Focus grant of €7,200 will be available to Enterprise Ireland and Údarás na Gaeltachta clients. For more information on specific Government supports related to Covid-19 and the roadmap for reopening society and business, visit www.gov.ie.
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Covid-19 Pandemic
What does the ‘new normal’ look like for eCommerce? Jennifer Macrae, Vice President Product Management, Mastercard, reflects on the likely impacts of the Covid-19 pandemic on eCommerce both now and in the months ahead. AS our lockdown continues and the ‘new normal’ is affecting the globe, I reflect on major behavioural shifts we have observed so far and the impact they may have on eCommerce in the months and years ahead. Shift to online ordering and delivery Lockdown has been a huge catalyst for shifting behaviours to embrace eCommerce. The large grocery stores have done their utmost to scale their logistics network to cope with such a rapid increase in demand, especially for online purchases. It remains to be seen how much of this demand will continue when we return to our ‘new normal’ but I’d hazard a guess that many will see that good quality produce, conveniently delivered to your door is not only a time saver but reduces food waste, so increased demand will likely continue. But the acceleration of the eComm adoption curve hasn’t just been in grocery. There have been some other surprising growth categories for online purchases, including home & garden items, bicycles & exercise gear, outdoor & indoor games, office equipment and reading matter, as people across the country shift their offices and entertainment to what they can do at home. Forever disrupted supply chain Many small businesses that usually supply the (now closed) restaurants, cafés and even event caterers are pivoting to supply groceries and other household items direct to consumer. They have the means to make deliveries, but they need to build out a way to handle payments, orders and increase their brand awareness. The businesses that are doing this
successfully are fast attracting and retaining customers with the delivery of their grocery boxes brimming full of high quality, beautiful produce, often in less packaging than your average supermarket delivery would generate. I believe these businesses will create a loyal customer base during lockdown and likely be faced with a choice when the world returns to normal – to keep delivering direct to consumer alongside their ‘normal’ business or not. The demand from consumers to purchase high quality, local produce is certainly there; will the small business sector grow in the long term, as a result of their new D2C offering?
Jennifer Macrae, Vice President Product Management, Mastercard.
Social buying Whilst social distancing moved from buzzword to part of our daily lexicon in record time, group wide video conferencing usage has also risen dramatically. With large families and groups of friends spending virtual social time together, I’m noticing a proliferation of new business opportunities here, and opportunities for eCommerce. For example, an artisan chocolate producer advertising delivery of a tasting box for you and your friends to have a tasting experience together (virtually of course) is genius! Other entrepreneurial ideas have included the mass movement of inperson classes online, anything from baby sensory to group yoga and even HIIT sessions. These businesses still need to collect payments for their services but are having to use separate platforms for payments versus video conferencing. Consumers have embraced this move to online and, as with the
disrupted supply chain, I expect we will still see a new swathe of customers who want to sign up to these services from the comfort of their own home in a post-lockdown world. Perhaps video conferencing platforms will incorporate group ordering and payments in a simple intuitive way as they see the uptake of their platforms by small businesses looking to charge for their video presence. A driver of change Never has there been a moment in time when the right technology, to connect families and friends or buyers and sellers, been so critical to people’s mental health and wellbeing. Times of difficulty are great drivers of change, of innovation and there are so many good initiatives starting up around the globe. I’m certain that in a postlockdown world, many of these changes will persist. The innovation being driven across the world is contributing to defining our new normal. A new, improved normal.
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Covid-19 Pandemic
Assessing the impact of Covid-19 A new report examines the impact of the Covid-19 on shopping behaviour across the world, with some very interesting findings for what consumers will expect in a post-pandemic world. CAPGEMINI recently launched a new report which looks at the impact of Covid-19 on consumer shopping behaviour around the globe, based on a survey of over 11,000 global consumers at the beginning of April 2020. Key findings of the research include: • Globally, consumers are optimistic about recovery: 48% are optimistic about recovery from the current crisis in the next six months. When asked about the next 12 months, positive sentiment increases, with 70% optimistic about recovery. • Attitudes to in-store shopping: 59% of consumers worldwide said they had high levels of interaction with physical stores before Covid-19, but today less than a quarter (24%) see themselves in that high-interaction category. In the next 6-9 months, only 39% of consumers expect a high level of interaction with physical stores, clearly below the pre-Covid levels. • Automation is becoming a must-have: 57% of consumers would be more comfortable with complete in-store automation that does not require touch-based practices in a post-pandemic era (for example, product information search, in-store navigation, and order to payment is done on the consumer’s phone). • Safety is now a key differentiator: 77% of consumers will be more cautious about cleanliness, health, and safety in the post-pandemic era. Nearly 62% will also switch to
brands that show higher levels of product safety and 54% will prefer local items over imports, due to safety concerns over the use of foreign products. This increased consumer awareness translates into increasing demand for safety measures during in-store shopping and delivery. As countries move along the Covid-19 curve, traditional shopping behaviour is significantly disrupted and transformed. Uncertainty is high, many businesses are shut, and people are concerned about recession. With these recession concerns, they are keeping a closer eye on spending, focusing on essential goods rather than lifestyle and leisure products, for example. At the same time, with lockdown measures in place around the world, there has been a surge in the use of online channels. In this fast-changing and volatile environment, how can consumer products and retail organisations drive operational resilience and maintain their pre-crisis focus on customer relationships and engagement? To help answer those questions and understand the impact of the pandemic on short-term and mid-term consumer behaviours, CapGemini surveyed more than 11,000 consumers across the US, UK, Germany, France, Netherlands, Sweden, Norway, Italy, Spain, India, and China. While the survey didn’t include Irish consumers, the results are certainly interesting for Irish retailers and brand owners, as so many of our brands, as well as our fears and hopes, tie in with those in other
taken a heavy toll and online interaction is accelerating (see Figure 1):
now a priority and we highlight several action points for the industry:
Retail News|May 2020|www.retailnews.ie|35 Figure 1: Consumers appetite for online shopping is growing
Percentage of consumers with high interactions with physical retail stores
Covid-19 Pandemic Percentage of consumers with high interactions with online retail channels
59% 37% 39%
30%
In the next 6–9 months
Before the COVID-19 outbreak
40%
24%
Before the COVID-19 outbreak
In the current scenario
In the current scenario
In the next 6–9 months
Consumers’ appetite for online shopping is growing. Source: Capgemini Research Institute, Consumer Behavior Survey, April 4–8, 2020, N=11,281 consumers. countries. If Covid-19 has shown us one thing, it is that humanity has never been as connected across nationalities and borders. Drawing on that extensive research, this analysis focuses on three key consumer trends for consumer products and retail (CPR) organisations in the short- and mid-term:
1. Convenience: Appetite for online shopping and convenience will continue to accelerate The Consumer and COVID-19 post-lockdown; 2. Health and safety: With consumers becoming more concerned about health and wellness, they will expect safer in-store and lastmile practices from CPR organisations in a post-pandemic scenario; 3. Focus on purpose: CPR organisations that embody a sense of purpose and strong sustainability credentials will see greater consumer engagement. Appetite for online shopping and convenience With more and more cities and urban areas under lockdown, non-essential businesses closing, and customers avoiding public places in general, interaction with physical stores has taken a heavy toll and online interaction is accelerating. Appetite for online shopping and convenience will continue to grow after lockdowns are lifted. The Covid-19 pandemic has accelerated the significance of online channels. Today, consumers consider online as their primary shopping channel and this will persist in the immediate future. In that digital-first environment, operational
agility, flexibility and consumer engagement assume huge significance.
match offerings and demand.
• Build immediate response 59% OF CONSUMERS WORLDWIDE SAID capabilities with suppliers: • Focus on realigning product categories: Organisations should adapt their supply THEY HAD HIGH LEVELS OF INTERACTION Organisations need to continuously chain and work closely with their WITH PHYSICAL STORES BEFORE COVID-19, reassess consumer preferences and suppliers to ensure: BUT TODAY LESS THAN A QUARTER (24%) SEE align categories and offers accordingly. This requires agile demand planning – An aligned and scenario-based THEMSELVES IN THAT HIGH-INTERACTION and clear prioritisation of focus areas business continuity plan is in CATEGORY and resources. For example, Unilever is place to frequently assess evolving currently focusing on meeting a surge scenarios; – Adequate supplies are on hand to in demand for food and refreshments and concentrating on larger SKU items, meet demand along with a “buffer” 2 such as large jars of mayonnaise rather stock of essential items; than smaller containers. In the long– Agile approaches are in place to term, being highly responsive towards handle logistics and fulfilment of consumer trends will be critical, online orders – such as adopting and organisations that can automate ‘drop shipping’ where the supplier directly fulfils the customer order; predictive analytics for consumer behaviour will be the ones who can best – Optimum inventory visibility –
• Explore different fulfillment centers for online orders: – StoresNews|May as fulfillment centers: US-based supermarket 36|Retail 2020|www.retailnews.ie Kroger converted one of its stores into an exclusive
delivery options – both in the current crisis scenario and beyond. Firms must scale up operational agility to ensure that delivery assurances and flexibility are offered and upheld to not risk losing them to firms fulfilling these expectations.
Covid-19 Figure 2: Consumers Pandemic prefer retailers that offer delivery assurances and flexible delivery
" I prefer to purchase with organizations offering delivery at flexible time slots"
"I prefer to purchase from organizations who offer delivery assurances/assurances of compensation for future cancellations"
45%
49%
45%
50%
24%
24%
26%
25%
31%
27%
29%
25%
Current preference
In the next 6–9 months Disagree
Current preference Neutral
In the next 6–9 months
Agree
APRIL 2020
Source: Capgemini Institute, Behavior Survey, April 4–8, 2020, N=11,281 consumers. Consumers prefer Research retailers that offerConsumer delivery assurances and flexible delivery. establishing communication and data-sharing channels with their suppliers and consumers to drive flexibility and transparency.
The Consumer and COVID-19
share distribution depots, delivery vans, and stock data is a positive action in this regard.
Consumers demand delivery Some retailers have explored different reassurance and flexibility The last mile clearly needs to be both robust and agile. Some fulfilment centres for online orders: More than half of consumers prefer action points emerge for CPR organizations: organisations that offer delivery Stores as fulfilment centres: assurances and flexible delivery options, • Partner with the delivery platforms: the established delivery ecosystems for US-based supermarket Kroger converted Leveraging both in the current crisis scenario and their fleet network helps organizations to “plug and one of its stores into an exclusive beyond. Firms must scale up operational play” last mile capabilities and avoid delayed deliveries. fulfilment centre to fulfil hyperlocal agility to ensure that delivery assurances Figure 3 highlights a few emerging models used by CPR online orders. To support the shipping of companies and flexibility are offered and upheld to today. online orders and to lower delivery costs, not risk losing them to firms fulfilling organisations should focus on three these expectations. • Look at a fluid workforce to deal with fluctuating demand and supply: areas: The last mile clearly needs to be both Walmart is hiring 150,000 temporary workers to manage robust and agile. Some action points 11 In the UK, Tesco launched a major recruitment (1) repurposing store layouts to support a demand. emerge for CPR organisations: drive to hire 20,000 temporary workers.12 Amazon is higher volume of online orders; targeting 100,000 new full-time and part-time positions to (2) ensuring inventory accuracy; Partner with the delivery platforms: deal• with increased demand.13 (3) training staff for store-based Leveraging established delivery fulfilment. ecosystems for their fleet network helps organisations to “plug and play” last mile Previous analysis by Capgemini capabilities and avoid delayed deliveries. showed that a 50% increase in storeFigure 3: Emerging delivery partnerships ecosystem based deliveries could potentially • Look at a fluid workforce to deal with increase profit margins by 9% due to lower delivery cost and less time taken for delivery.
Dark stores Using ‘dark stores’ – retail outposts with a store-like layout whose sole purpose is to fulfil online orders – will also help enable faster delivery. This is because of their proximity to urban areas and the fact that their layout is specifically designed for this goal. By avoiding the use of normal stores for fulfilment, it also ensures in-store customers are not disrupted. Distribution centres: Converting existing distribution centres (DCs) to suit e-Commerce or opening dedicated e-Commerce centres as well as entering into collaborative partnerships for optimal utilisation of DCs should be considered. For instance, the UK government’s initiative temporarily allowing supermarkets to
RESEARCH NOTE
fluctuating demand and supply: 3 Walmart is hiring 150,000 temporary workers to manage demand. In the UK, Tesco launched a major recruitment drive to hire 20,000 temporary workers. Amazon is targeting 100,000 new full• Flexible delivery slots: time and part-time positions to deal with US-based grocery delivery service Instacart, for instance, increased demand. has designed a “Fast & Flexible” delivery option to increase speed and delivery availability. It enables customers to
have their order delivered by the first-available delivery • Flexible delivery slots: executive, rather than schedule it for a specific delivery US-based grocery delivery service window. Thus, the customer provides Instacart with Instacart, for instance, has designed more flexibility on when the order is delivered, ultimately a “Fast & Flexible” delivery option to increasing speed. According to product tests, Fast & Flexible increase speed and delivery availability. has increased available delivery windows by 50%. It has It enables customers to have their order increased the speed as well, with 85% of orders arriving within the earlier portion of the estimated delivery range.14 delivered by the first-available delivery executive, rather than schedule it for Consumer engagement will be a key differentiator a specific delivery window. Thus, the customer provides Instacart with more While transforming fulfillment and last-mile strategies for flexibility on when the order is delivered, today’s unique crisis scenario helps operational resilience, ultimately increasing speed. According in the mid-to-long run, CPR organizations need to focus on to product tests, Fast & Flexible has seamless customer experience both in stores and in online channels for the real differentiator. Considering the demand increased available delivery windows by 50%. It has increased the speed as well, with 85% of orders arriving within the earlier portion of the estimated delivery Partnership with ride-hailing networks In France, Carrefour and Uber Eats partnered to provide home deliveries.5 In the US, ride-sharing firm Lyft partnered with Amazon for package and grocery deliveries.6
Partnership with ‘food delivery’ platform India-based consumer product firm ITC partnered with pizza-delivery Domino’s.7 UK-based Morrisons announced a partnership with food-delivery platform Deliveroo.8
Plug and Play last mile capabilities
Partnership with ecommerce marketplaces Reckitt Benckiser partnered with Africa-based, online marketplace Jumia.9 India-based brick-and-mortar store Spencer’s Retail partnered with online marketplace Flipkart.10
Emerging partnerships Source: Capgemini delivery Research Institute, Consumer ecosystem. Behavior Survey, April 4–8, 2020, N=11,281 consumers. The Consumer and COVID-19
4
Though the immediate focus should be on providing an online experience, in the medium-to long run organizations will also need to focus on providing a consistent experience across all
Retail News|May 2020|www.retailnews.ie|37
Covid-19 Pandemic
Figure 5: Consumer outlook on health and safety in a post-pandemic scenario
Once the pandemic is over …
range. Consumer engagement will be a key differentiator While transforming fulfilment and lastmile strategies for today’s unique crisis scenario helps operational resilience, in the mid-to-long run, CPR organisations need to focus on seamless customer experience both in stores and in online channels for the real differentiator. Considering the demand for online shopping channels in the current and immediate future, we see a number of priorities for CPR organisations, specifically in the digital store front:
77%
of consumers will be more cautious about cleanliness, health and safety
62%
of consumers will switch to brands that show higher levels of product safety
54%
of consumers will prefer local or regional products
Consumer outlook on health and safety in a post-pandemic scenario. Source: Capgemini Research Institute, Consumer Behavior Survey, April 4–8, 2020, N=11,281 consumers. • Create a frictionless digital experience: personalisation service for gifts. be on providing an online experience, in Reducing the number of clicks from the medium-to long term, organisations • Smart recommendations: “product discovery to purchase” will will also need to focus on providing and COVID-19 augment online preferences, especially The Consumer China-based Yonghui supermarkets a consistent experience across all among demographics that are new to channels and digitise the physical stores provided online recommendations to online shopping. as well – as consumers will expect the help consumers choose combinations of fresh produce rather than select items same features in stores as they see online. • Focus on innovative and personalised individually, which helped the firm to customer engagement: improve fulfilment rate and provide Many retailers have been experimenting Healthier and safer practices better experience. with live streaming during the Covid-19 Capgemini’s research shows that 77% crisis. For example, UK-based brewery • Voice-based interfaces: of consumers will be more cautious BrewDog has created an online virtual about cleanliness, health, and safety The current situation offers an bar experience to encourage social in the post-pandemic era. Nearly 62% opportunity for organisations to scale distancing. The brewery has opened over will also switch to brands that show up capabilities such as voice commerce 100 virtual bars to host events such as to strengthen engagement. Previous higher levels of product safety and 54% beer tasting, pub quizzes, live music, and research established that voicewill prefer local items over imports comedy shows. Virtual reality is another due to safety concerns over the use based interfaces increase customer are, with Dior launching a virtual reality of foreign products. Moreover, more satisfaction scores by more than three version of its flagship Paris store, with than half of consumers expect detailed percentage points for about 60% of customers able to click on individual consumer products and retailers product information (product origin, products to get more information about deploying it. details, origin, etc.) both now and in a post-pandemic world. This increased them and purchase, as well as offering a Though the immediate focus should consumer awareness translates into increasing demand for safety measures during in-store shopping and delivery. Consumers are becoming increasingly wary of what they perceive to be unsafe in-store practices, including touch-based interactions. More than 60% want their retailers to adopt safety practices in the store. More than half want retailers to reorganise their store layout to facilitate social distancing, 46% prefer to increase the use of in-store digital payments, and 41% opt for a nontouch based self-checkout system (using their own phone, for instance) when shopping in the store. Additionally, 57% would be more comfortable with complete in-store automation that does not require touchbased practices in a post-pandemic era (for example, product information search, in-store navigation, and order to payment is done on the consumer’s phone). Given this change in behaviour, there are a number of priorities for the
6
38|Retail News|May 2020|www.retailnews.ie
Covid-19 Pandemic industry: • Reorganisation of store layouts to ensure social distancing: Earlier studies have shown that spatial shopping behaviour has a positive influence on consumers, and this holds increased importance in the current pandemic period. Optimal store layout design and the temporary removal of shelves meant for non-essential goods would reduce congestion and allow consumers to maintain distance. Retail in-store navigation apps can also show consumers the exact location of an item on their phone, thereby APRIL 2020 reducing their movement around the store. This may be enabled by installing in-store beacons, as Target recently did.
RESEARCH NOTE
• Mobile-based self-checkout systems: US-based Walmart, Target, Macy’s, and and consumers’ own phones. For Germany-based electronics retailer example, Fairway Markets, a grocery MediaMarktSaturn piloted autonomous, chain in New York, began using a scanself-checkout systems with mobile Consumers will spend more on essentials such as groceries and less on discretionary items and-go app that helps consumers use phone, even before the Covid-19 Consumer spending patterns across categories are shifting dramatically. When asked about the current situation, their phones to scan product bar codes outbreak. Similarly, European retailers, nearly one-third of consumers mentioned they have increased spending in categories like groceries and at-home and pay for them. such as Albert Heijn in the Netherlands entertainment. and FNAC in France, already had • Scaled adoption of digital and self-checkout systems. However, this This situation of preferring essentials over discretionary items continues in the next six to nine months as well. contactless payment services: concept has gained significant traction •during the current pandemic. Such Only 19% see a reduction in grocery spend and over a thirdSmartphone penetration rates are on the (35%) anticipate increased spending applications help keep stockpiling in rise among consumers globally. Given • But in luxury, 57% see a reduction and only 20% see an increase (see Figure 8). check by allowing retailers to set limits the favourable regulatory framework, on the quantity of an SKU purchased. It Country-wise, 65% of consumers in India say that they will seeretailers across the globe should their grocery purchases rising in the next 6–9 months. also allows customers to practice social This is followed by China (56%), US (42%), and Italy (41%). Conversely, luxury goods will see a major fall in Spain, with aggressively increase the adoption of 69% of consumers saying they will buy less. This is followed by Sweden (67%), France (65%), and Norway (65%). distancing. Smaller retailers should digital payment wallets. In much of the leverage the retail tech ecosystem developed world, contactless cards are to implement autonomous checkout Figure 8: Expected consumer purchase changes per category in the next 6–9 months the norm in urban areas. mechanisms via third-party applications Groceries and food supplies
19%
Personal care products
25%
At-home entertainment/Media
31%
34%
Leisure travel
30%
48%
Restaurant dining
30%
46%
29%
Household supplies
27%
Work-related travel
29%
50%
28%
Apparel and accessories
39%
Restaurant takeaway
27%
44%
Over-the-counter health products
27% 34%
Consumer electronics
26%
44%
Tobacco
23%
48%
Furnitures
23%
50%
Alcoholic beverages Luxury products
35%
23% 42%
23%
57%
Percent of consumers expecting increase in purchase
20%
Percent of consumers expecting decrease in purchase
Expected consumer purchase changes per category in2020, theN=11,281 next 6–9 months. Source: Capgemini Research Institute, Consumer Behavior Survey, April 4–8, consumers.
Safety assurance from delivery service providers 50% of customers currently prefer to purchase from organisations that offer safe delivery practices (for example, stickers that highlight safe delivery practices, sanitisation of the package, minimal human contact, etc.). This preference percentage is expected to remain constant in the next 6–9 months as well, signifying a sustaining shift in consumer behaviour. In the short term, to reduce chances of transmission, contactless delivery is an immediately viable option that can be implemented with minimal technical backup. On a more futuristic note, autonomous vehicles and robots can be deployed. In China, the delivery app, Meituan, has used a smart deployment system. When an order is received, it allocates a robot to the pick-up point in the automated distribution centre. The delivery robot then carries the item to the waiting zone, where the goods are handed over to the autonomous vehicle used for last mile delivery. Optimus Ride, the Massachusetts-based autonomous shuttle company, is making make food deliveries to senior citizens in retirement communities who can no longer congregate in dining halls at meal times. Organisations that embody a sense of purpose and strong sustainability credentials will see greater consumer engagement. Research has shown that purpose-driven organisations grow at more than twice the rate of other organisations. In these critical times of crisis, consumers look to organisations to step up and showcase a sense of responsibility towards the society and community. More than half of the consumers surveyed expect
e-Commerce channels. For example, IKEA is using AI to predict the best possible destination for returned merchandise. The algorithm currently covers items returned from in-store purchases but can accommodate News|May 2020|www.retailnews.ie|39 online returns as well.51
Unilever’s “Sustainable Living Brands” are growing 69% faster than the rest of the business and delivering 75% of the company’s growth.48
Retail
Covid-19 Pandemic
Figure 10: Consumers will be more mindful in their purchase habits and conscious about conserving natural resources
organisations to showcase their sense of Once the pandemic is over … purpose and give back to society – both during the crisis and beyond. There have been numerous stories of brands showing a real sense of of consumers will of consumers will be responsibility. In France, Carrefour set be more conscious more mindful in their up a telephone delivery service for the about conservation purchase habits of natural resources elderly, who are not always comfortable ordering online. Providing finance for struggling but strategically important suppliers or will be moreConsumer mindfulBehavior in their purchase habits and conscious Source:Consumers Capgemini Research Institute, Survey, April 4–8, 2020, N=11,281 consumers. logistic operators, especially smaller about conserving natural resources. ones in the chain, can also help in At the same time, supply chains have integrate with their digital presence, maintaining operational continuity. For The Consumer and COVID-19 received a significant shock and we have with initiatives like combined deliveries, example, Unilever has offered €500m seen unprecedented demand for – and streamlined returns and pick-ups, and of cash flow relief to support its small- mass stockouts of – essential items. optimised delivery routes. and medium-sized suppliers. The same Technology will be key to meeting those company has pledged to contribute challenges. This is true for both for the Conclusion €100m through donations of soap, recovery phase, where it will underpin The Covid-19 pandemic has forced the sanitiser, bleach, and food to the wider innovative new solutions, but also CPR industry to review its core markets community. for the longer-term, relaunch phase, and operating model. The sector has had to reassess consumer preferences and where it will be key to future-proofing Consumers will focus on sustainability behaviour in an era of great uncertainty the organisation for a new reality. In Consumers have become more cautious and consumer nervousness about the such unprecedented times, consumer when it comes to their health and economy and their own future. We are products companies, retailers, and wellness, with 40% preferring disposable seeing a pattern shift in the way we restaurants should combine technology product packaging both today and in consume and think about consumption, with an understanding of societal the next 6-9 months. However, overall leading to a change in buying behaviour. sentiments, giving importance to a sustainability is also a key issue: 67% And many of these behavioural changes greater purpose and sustainability to said that they will be more cautious may turn out to be permanent. people. about the scarcity of natural resources and 65% said that they will be more mindful about the impact of their overall Emerging delivery models consumption once the pandemic is over. SEVERAL innovative models have emerged around the world – such as community Strengthening your sustainability based approaches – as CPR organisations look to respond to the need to remodel initiatives across the value chain will delivery, minimise contact, and drive operational efficiency cultivate authentic relationships and build engagement and brand loyalty. This Community group delivery models means looking at the entire value chain In this model, retailers deliver to the entire “community” in a residential area – for and beyond and identifying opportunities example taking orders for an entire apartment complex together and delivering them for sustainable product design - with collectively at one time rather than individually at different times. These models ensure a circular approach - or looking at deliveries that can minimise contact, reduce logistics costs per order and have a smaller responsibly sourced raw materials, carbon footprint. In China, during the lockdown, many retailers adapted the concept of a greener manufacturing process WeChat groups to local communities. They created groups to connect with people living and store operations, reducing waste in the same neighbourhood and then addressed this population as a single customer throughout the lifecycle, and looking for segment. opportunities for eco-friendly packaging, etc. Shared-labour models Consumers are increasingly looking In this model, “idle” employees from other sectors are temporarily hired by retailers for local products, both for health and to meet the surge in demand for services such as online deliveries. The use of talentsafety reasons and for sustainability. sharing and online, flexible scheduling platforms can allow retailers to share their partSo, providing transparency on the origin time labour and avoid double booking employees for shifts. For example, in Germany, and footprint of the goods will help Aldi has leased staff from McDonalds, and China’s Hema grocery store has temporarily consumers make a sustainable choice hired from more than 40 restaurants, hotels and cinema and build trust. French retail group, chains which were temporarily shut down under it’s Auchan, is looking towards blockchain “talent-sharing” programme. for food traceability. Customers would be able to scan a product with a QR code Bundle-based sales in the supermarket, and the app would Selling fixed bundles of the most commonly purchased show where the product came from, who products not only helps to manage logistics, but also handled it, and how it reached its end ensures easy billing. In the UK, Morrisons has introduced destination, addressing concerns on food a food box initiative, where shoppers pay one price for a safety as well as the carbon footprint of box full of essentials. In France, Carrefour has created two the product. grocery boxes specifically for elders – one with food and Retail and consumer goods other with cleaning products. organisations also have an opportunity to adopt sustainability initiatives that
67%
65%
40|Retail News|May 2020|www.retailnews.ie
Lindt
Lindor Treat Bar: the epitome of indulgence The must-stock Lindor Treat Bar offers consumers “a moment of bliss wherever you go”, and is available in a slim stick format and a convenient multipack. format, perfect for filling lunch boxes or as a little picnic treat while consumers are out and about. The Lindor Multipack is available in all leading retailers and retails at €2.69. The Lindor Treat Bar 38g range retails at €1.29 and is available nationwide.
Lindor Treat Bar in a slim stick format, it is the perfect on-the-go treat and is available in three delectable flavours: the classic Lindor milk recipe, the irresistibly smooth melting mint filling and a zesty orange flavoured milk chocolate.
Care and passion in every bar Lindt Lindor is the epitome of indulgence as it creates a moment of escape and relaxation in a consumer’s busy day - a smooth melting ‘me moment’. The tempting Lindor Treat Bars are a product of the care and passion that Lindt’s Swiss Master Chocolatiers put into creating each and every recipe. With a selection of flavours to choose from, consumers can treat themselves to a moment of bliss wherever they go with the Lindor Treat Bar!
NOW worth over €2m in RSV, the smooth melting Lindor Treat Bar is Ireland’s number one premium chocolate countline and is a proven must stock range for retailers this year (Source: Nielsen Scantrack MAT, Snacking Countline Market, to March 22, 2020). Available in a slim stick format, it is the perfect on-the-go treat and is available in three delectable flavours, the classic Lindor milk recipe, the irresistibly smooth melting mint filling and a zesty orange flavoured milk chocolate for those looking for something with a little twist, each flavour promising to be a “blissful” experience on consumer taste buds.
available are the Lindor Milk and Orange Multipacks, the same slim stick packaging but in a convenient multipack
Magical multipacks Following on from the success of the Lindor Treat Bar range, also
The Lindor Treat Bar range is also available in Lindor Milk and Orange Multipacks, the same slim stick packaging but in a convenient multipack format.
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Ice Cream
The ice guys!
Ireland’s appetite for ice cream remains undiminished, as consumers continue to indulge in their favourite frozen treats. IRISH consumers adore ice cream, no matter how bad the weather is. That said, the recent spate of sunshine and high temperatures won’t have hurt at all, as consumers treat themselves to their favourite frozen desserts for a little ‘me time’ amid the chaos that the Covid-19 pandemic has wrought in our lives. Recent years have seen the rise of low calorie and dairyfree ice cream, with consumers’ desire for healthy products fuelling demand for these categories. That said, Unilever Ireland Ltd continues in its position as the dominant player in ice cream and frozen desserts, according to the latest report into the sector from Euromonitor International, with its Magnum, Cornetto and Ben & Jerry’s brands remaining the best sellers in the country. The multinational player continues to demonstrate its ability to react rapidly to changing trends and demand. This year has been a strange one, with the Covid-19 pandemic affecting every aspect of Irish society, but the ability to treat oneself and one’s family to some frozen delights has become a crucial part of the ‘new normal’ for many consumers across the country. We highlight some of the new products, guaranteed to get consumers excited in the ice cream category.
Freddo Family favourite Freddo is hopping down the ice cream aisle as Froneri launches the new Cadbury Freddo Sandwich. Made from Cadbury chocolate ice cream, sandwiched between two Freddo-faced cocoa biscuits, this lip-licking treat is perfect for those shared family moments and what’s more, each sandwich is under 100kcals. The launch capitalises on a much-loved family favourite, while marking the first sandwich in the Cadbury ice cream portfolio. Ideal for celebrating everyday moments as a family, the Freddo Sandwich provides a tasty treat that kids will love. And, with four different faces to find, they’re fun for everyone. “The Freddo Sandwich is the perfect treat for little ones,” explains Shane Guest, Country Manager, Froneri Ireland. “We’re really seeing an increase in ice cream as an everyday treat being driven by simple formats, size and ease of consumption, in addition to price, which is why we’re excited to reveal this latest offering which appeals to our mum audience so effectively.”
The new Cadbury Freddo Sandwich ice cream from Froneri Ireland: less than 100kcals in each one.
DELICIOUS CHOCOLATE ICE CREAM SANDWICHED BETWEEN YUMMY CHOCOLATE BISCUIT. DELICIOUS CHOCOLATE ICE CREAM SANDWICHED BETWEEN YUMMY CHOCOLATE BISCUIT.
44|Retail News|May 2020|www.retailnews.ie
Ice Cream
Froneri Ireland has created a winning formula with the Oreo Stick Sandwich ice cream, coated in Cadbury chocolate. Oreo Stick Sandwich Ice Cream Think of Oreo, the coolest brand in ice cream, in its delicious sandwich format which is already a best-seller. It doesn’t get much better, right? Wrong! Froneri has only gone and combined Oreo with much-loved Cadbury to create the Oreo Stick Sandwich, which features vanilla cookie ice cream sandwiched between two tasty Oreo cookies, which are then coated in delicious Cadbury chocolate and placed on a handy stick. It’s as playful as Oreo and as indulgent as Cadbury, creating a winning combination, not only given that indulgent sticks are the biggest sector within the category, but the Oreo Stick Sandwich introduces a new level of innovation into the market with its unique concept. And, at only 185kcal per stick, it’s set to get hearts racing across Ireland. “With the Oreo ice cream sandwich being such a hit, we wanted to see what else we could do to excite Oreo fans,” reveals Shane Guest, Country Manager, Froneri Ireland. “The new Oreo Stick Sandwich is a sector-changing launch, which appeals to a wide target audience given the combination of brand recognition, indulgent taste combinations and ease of enjoyment.”
across Ireland, and with the demand for the brand growing continually, the in-store queues that a Smooch Parlour typically generates were Dairyglen’s primary concern during the current pandemic. “Ice cream is one of the most frequent consumer purchases in the forecourt retail environment, making it a priority for us to develop new ways for retailers to stay open,” revealed Alexandra Smith, Brand Manager, Smooch. “After queuing for the last 40 minutes, I’m definitely rewarding myself with an ice cream,” as one customer said to Paul Lynam of Lynam’s Fine Foods. Dairyglen introduced a host of measures to adapt to the challenges of the Covid 19 pandemic, including: • Smooch Take-Home Order Forms “We developed our new take-home menus to combat instore queuing and encourage an online ordering system,” Alexandra notes. Made to allow customers to order from the comfort of their own home, this allowed retailers to maintain a safe two-metre distance between customers at all times, keep their store queue-free and keep their sales up. “With fun and creativity both core aspects of the Smooch brand, we incorporated a quirky format to make this process as exciting as possible for children and adults alike,” Alexandra explains.
Smooch Smooch, from Dairyglen Ltd, one of Ireland’s leading real dairy soft service ice cream concepts, is still serving communities
Dairyglen developed new take-home menus to combat instore queuing and encourage an online ordering system for their Smooch soft serve ice cream concept. • Smooch Parlour Safety Screens The introduction of screens has helped encourage a contactless sales environment for customers. “Working closely with retailers, we listened to feedback and have refined this offering to allow for a quick and efficient, click-fit PPE screen protection that can be simply fitted in minutes by you,” Alexandra reveals.
Smooch continues to be hugely popular with Irish consumers, young and old, with demand set to soar as the summer ice cream season is fast approaching.
• Offsite store monitoring Dairyglen’s remote 4D dial-in system meant social distancing was not an issue for its team. “With remote access to our retailers’ ice-cream machines at any time, from anywhere, we remained in control whilst you stayed supported,” according to Alexandra. “Managed solutions have always been Dairyglen’s key focus, making the process of adapting to life during a pandemic that much easier. With over 30 years of experience in this industry, challenging the status-quo is deep-rooted in our DNA.
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Ice Cream “Innovation has always played a central role in how Dairyglen does business; for 30 years, we have paved the way for soft-serve ice-cream in the retail environment. “Adapting to this ‘new normal’ meant an immediate focus on operational excellence,” she continues. “With a team of expert technicians and food safety professionals, we quickly prioritised effective solutions to allow retailers the opportunity to continue to sell ice cream safely. Ice cream season is approaching and people still need a reason to smile. Contact us today to start selling ice cream today.” For more information, visit Mysmooch.ie or Dairyglen.ie, call (01) 2865000 or (021) 4533861, or email info@dairyglen.ie. Magnum Magnum, the premium ice cream brand, has launched Europe’s first ever Ruby chocolate covered ice cream in Ireland. Magnum Ruby is made with Ruby cocoa beans, the fourth variant of chocolate, and gives pleasure seekers the opportunity to indulge in a completely new ice cream taste experience, with its
Häagen-Dazs creates ‘Caramel Royale’ inspired by 007 HÄAGEN-DAZS recently collaborated with Sipsmith to create ‘Caramel Royale’, inspired by the iconic James Bond film, Casino Royale. Häagen-Dazs and Secret Cinema recently presented the critically-acclaimed Bond movie as part of the Secret Sofa home entertainment series, where audiences can create their own unique immersive cinema experiences in collaboration with luxury ice cream brand Häagen-Dazs, to tie in with its new ‘‘HäagIndoors’’ initiative. An alternative to the classic dry Martini, try the new bespoke creation ‘Caramel Royale’, a collaboration between Häagen-Dazs and Sipsmith, is a luxurious medley of Häagen-Dazs Salted Caramel ice cream enjoyed with Sipsmith London Dry Gin, the perfect sweet spot for an indulgent #HaagIndoors movie night in.
stunning natural pink hue making it the ultimate romantic indulgence. A superior ice cream experience, Magnum Ruby
Magnum Ruby combines an indulgent velvety ice cream, enriched with a luscious raspberry sauce swirl and coated in Magnum’s signature cracking Ruby couverture chocolate.
combines an indulgent velvety ice cream, enriched with a luscious raspberry sauce swirl and coated in Magnum’s signature cracking Ruby couverture chocolate. “Magnum Ruby is a superior ice cream experience and Magnum is excited to bring this innovation and authentic Ruby chocolate experience to the Irish market,” said Magnum Ireland Brand Manager, Karen Murphy, at the launch. “The new Magnum Ruby is a decadent union of Ruby couverture chocolate and Magnum’s indulgent velvety ice cream and offers pleasure seekers the ultimate luxury ice-cream, offering a really unique and completely new ice-cream experience.” The most extraordinary chocolate discovery in the last 80 years, Ruby chocolate was in development since 2004 and finally unveiled in 2017 by Barry Callebaut, a Belgian–Swiss cocoa company, officially taking its place as the fourth type of chocolate after Dark, Milk and White. Ruby chocolate is neither bitter, milky nor sweet, but instead delivers a perfect balance of fresh berry fruitiness and luscious smoothness, introducing the nation to an ice cream taste experience like no other. Expertly crafted by master chocolatiers using only premium quality ingredients and responsibly sourced Ruby cocoa beans, Magnum’s unique crafting process enhances the unique pink colour tone and naturally present berry flavour, unlocking a new dimension of taste. The new range is brought to life through eye-catching, ruby- coloured packaging, featuring intricate gold foil detail.
46|Retail News|May 2020|www.retailnews.ie
In-Store Efficiency
Calculating the cost of a queue Simon Hedaux, founder and CEO of Rethink Productivity, asks how much revenue you are losing to queues in your store and advises on what you can do to reduce them.
WHEN there was a call for wannabe film extras to come to Liberty Hall a few months ago, the chance of appearing in Scott Ridley’s latest Matt Damon and Ben Affleck film created a line that stretched around several streets. It seems there are things that people will queue for. And there are a few hot tech and sneaker releases that enjoy creating a queue too, with the more people in it, and the subsequent social media impressions it creates, the better. However, for most stores, the exact opposite is true; it’s a sign the operation is not working as it should and that customer experience is suffering. And never more so than in the world of grab-and-go convenience retailing. A UK university psychology professor, Adrian Furnham, studied queues and came up with his “rule of six”, that customers are reluctant to join a line once it has six people in it. While this is a simplification and willingness to queue will vary depending on what you are buying, it’s a useful rule of thumb to remember when looking at your own business.
The fluidity of time A study of US supermarkets reported in Harvard Business Review found that increasing a queue length from 10 to 15 people dropped sales by up to 10%. While most stores won’t have queues that long, a UK study found that supermarkets’ queues are the ones customers like least and 44% of shoppers report they will leave their planned purchases after six minutes spent queuing. There is branch of psychology that is devoted to looking at the fluidity of time, how our perceptions of time vary depending on what we are doing. Five minutes lasts forever when we’re impatient yet flies by when we are enjoying ourselves. Experiential queuing: the Disney lesson Disney are masters of creating an experience from queues and provide diversion and entertainment that becomes part of the overall ride experience at their theme parks. Without going to the Disney extremes, smart retailers can divert customers looking for distraction in a queue and tempt them with impulse purchases or place their news and magazines offer next to the queue to create a reading opportunity, as well as the chance for
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In-Store Efficiency an extra sale. While there are ways to make the best of a bad job if a queue develops, if we want to be the first-choice convenience stop for our customers, what can we do to minimise our queues? The simple reason a line develops is that there is a mismatch between customer demand and the resources available to serve them as demand outstrips capacity. What causes queues? The trick to minimise queues forming is to get into the detail of your operation and understand what the drivers of your queues are. The common causes we see include: • Stores not routinely planning for their trading patterns. Are your busy times related to commuter patterns, school runs, shoppers looking for their evening meal or the evening dash to get emergency snacks and beer? Do you need an extra till opening around the peak times? • Team breaks planned at peak customer times, reducing capacity just when it matters most. • Colleagues focusing on tasks rather than customers, for example being engrossed in putting stock on the shelf. • Click & Collect parcel pick-up that takes colleagues away from the tills for a long walk to the stock room and protracted search for the parcel. • Services such as Post Offices, Lottery terminals, newspaper delivery, phone top-ups, dry cleaning etc. that can create prolonged transactions and add to wait times for a customer wanting to grab a litre of milk and go. • Slow technology connections that add a few seconds to the average transaction time. The tricky trade-off It’s a tricky commercial trade-off: too few colleagues and there’s a queue, too many and you are wasting salary spend that could be invested in adding value. Customers make a trade-off too, theirs is between queue time and travel time. If there’s always a queue in your nearest shop, it can be better to go to the next shop and avoid the wait. Even if it takes slightly longer in reality, it will feel quicker due to how we perceive time when we are busy rather than just standing and waiting our turn. Businesses are coming up with good ways to improve and eliminate their queues. 1. Reviewing their rotas against their business pattern to make sure they have the right team members available to provide a great service for their customers. 2. Encouraging use of contactless cards. In these healthconscious times, it not only reduces potential virus transmission, contactless payment takes half the time of chip and pin and is usually quicker than cash payments too. 3. Using self-checkouts alongside traditional checkouts to give customers a choice and keep the lines moving. 4. Scan and go – using apps or handheld tech so customers do their own scanning and packing with just a quick drop into a payment point as they leave. Queues around the world Many supermarkets have introduced and then backtracked from queue length promises as human solutions proved costly
Current social distancing must be observed in-store, making queues even trickier to manage. to deliver. Tokyo shoppers have been avoiding queues for many years, since Japan became the vending machine capital of the world, with everything from milk and bananas to hot food and umbrellas available in shop-front vending machines. It’s been slow to take off elsewhere, with only a handful of vending-only shops existing across Ireland and the UK. Amazon is using technology to eliminate queues with their Amazon Go stores. Shoppers check-in using their app and clever trackers combined with integrated payment mean they just walk out with their selected items. There are 25 Amazon Go stores across four US cities and the company is reported to be looking at new sites across the world. With all the innovation About the author: heading our way Simon Hedaux is founder and CEO and convenience of Rethink Productivity, a world retailing being all leading productivity partner which about customers helps businesses to drive efficiency, getting what they boost productivity and optimise need quickly and budgets. For more information see easily, it’s the rethinkproductivity.co.uk. perfect time to review our queues.
48|Retail News|May 2020|www.retailnews.ie
Healthy Options
Eating healthily amid the pandemic
Consumers are being reminded to eat healthily during the current pandemic. YOU cannot pick up a newspaper or open a website without seeing headlines like ‘How to stay healthy in a lockdown’, ‘Tips to stay healthy while cocooning’ or ‘Making healthy food choices in a pandemic’. Consumers are purchasing more from grocery stores than they have ever done, as evidenced by the latest figures from Kantar and Nielsen (see our news report on Page 4), but are they buying and eating healthily? There are certainly more shoppers than ever before taking the time to cook meals from scratch, which is a good sign, and home baking has exploded in popularity, although plenty of indulgent treats like ice cream and frozen desserts have also skyrocketed. Pre-pandemic, the health and wellness trend was deeply embedded in our collective psyche, as Irish consumers were happy to spend more on products that are slightly more expensive as they deem them to be good for their health, according to the Euromonitor report into Health &
Wellness in Ireland from January of this year. The 2018 introduction of the tax on sugar-sweetened drinks led to an intensive debate on the health state of the Irish population, with obesity levels coming into sharp focus. This, combined with a growing economy, meant that the health and wellness sector continued to grow. Consumers in Ireland are actively reducing their sugar and salt intake, as well as cutting back on processed foods, according to Euromonitor’s report into ‘Better For You Packaged Food’. Many food manufacturers, including mainstream chocolate companies, have been increasingly eager to reduce the sugar content of their products, with private label also reformulating products to reduce sugar and salt content. Quite what effect the current pandemic will have on long-term shopping patterns and trends is unclear, but one would hope that consumers’ desire to eat healthier is ingrained into our hardware by now.
Benecol Benecol have been helping people all over the world enjoy eating healthily for nearly 25 years. It all started with Ingmar Wester, a Finnish scientist who knew that plant stanols reduce cholesterol by partly blocking its entry to the bloodstream. After years of
The unique plant stanols of Benecol partially block cholesterol from getting into your bloodstream.
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Healthy Options research, he figured out that combining these plant stanols with rapeseed oil created plant stanol ester. And that this unique, patented ingredient could be used in food to lower cholesterol without compromising on taste. The unique plant stanols of Benecol partially block cholesterol from getting into your bloodstream. Whether it’s cholesterol produced by your body naturally, or the cholesterol found in your food, plant stanols can help prevent it from getting through the intestine wall. The plant stanol ester in Benecol foods has been identified as one of the 10 greatest nutritional discoveries in the world over the past 30 years. Leading nutrition researchers concluded that plant stanols are one of the only nutritional components that can truly lower cholesterol; high cholesterol is a risk factor in the development of coronary heart disease. More than 80 independent clinical studies have shown that a daily intake of 1.5-2.4g of plant stanol ester, the active ingredient in Benecol, can reduce cholesterol by between 7–10% within two to three weeks. And there are 30 gold standard clinical trials supporting the safety and effectiveness of plant stanols. Plant stanol ester remains the basis of the entire Benecol range today. Because living well, by taking care of cholesterol, can be combined with a life well-lived, full of great food, friends and family. Nearly two decades later and Benecol’s range has grown to include spreads, yogurts & yogurt drinks trusted by millions around the world for their delicious, convenient and proven way to lower cholesterol. Benecol have designed a three-week ‘ONEderful Routine’ programme
The plant stanol ester in Benecol foods has been identified as one of the 10 greatest nutritional discoveries in the world over the past 30 years.
to help consumers establish a new ‘ONEderful Routine’. Kind Kind was founded in 2004 by Daniel Lubetzky to create a snack that was both healthy and tasty but also create a platform to spread kindness. Kind has been growing year on year ever since, which shows not only the need for a nutritious snack on the go but also an affinity to the community that Kind has created. Since 2019, Kind has expanded to over 40 countries thanks to Kind officially launched with Mars Ireland in January 2019; its partnership with and has sold over two million bars since then. Mars. Kind officially launched with Mars the lookout for healthier alternatives to Ireland in January 2019; and has sold chocolate bars. over two million bars since then. Grenade now boasts an impressive All Kind products are gluten-free, 12 Carb Killa bar flavours, including low GI, and packed with heart-healthy the most recent recruits to the range - fats from nuts. In Ireland, the core range White Chocolate Salted Caramel, Dark currently has eight flavours and there Chocolate Raspberry and Chocolate are three in the Protein range, with Chip Salted Caramel. The range has also plans to launch Kind Breakfast later in expanded to include healthier shakes, the year. “From our best-seller Dark spreads and biscuits, all featuring Chocolates Nuts and Sea Salt to Crunchy on-trend indulgent flavours like Fudge Peanut Butter, we have a unique variety Brownie, Strawberries and Cream and of flavours that consumers love,” White Chocolate Cookie. explains Anne Sheeran, Kind Brand Activation Manager, Mars Ireland. Kind’s journey in Ireland is just getting started and now is the time to give Kind a try! Grenade Leading sports nutrition brand, Grenade, recently celebrated its fifth birthday, since launching its Carb Killa range. Renowned for being low in sugar and high in protein, Carb Killa launched its first three delicious protein bar flavours back in 2015; Caramel Chaos, Cookies and Cream and Fudge Brownie. Since the launch in 2015, the distribution of products has now expanded globally to an impressive 50 countries, with Carb Killa now selling circa €170m worth of bars worldwide. The success of Grenade’s Carb Killa range comes during a recent shift in consumer snacking trends and behaviour - and not just the die-hard gym bunnies upping their protein intake, but everyday consumers increasingly on
Grenade’s Carb Killa range recently celebrated its fifth birthday.
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Nivea
Complete cleansing care with Nivea – no compromise
CREATED to offer easy make-up removal, skin cleansing and care, the Nivea cleansing range delivers the most complete cleansing experience. The innovative collection of products from Ireland’s number one face brand helps to thoroughly cleanse the skin, while gently caring and protecting its delicate moisture balance. The Nivea cleansing line comprises of various formats to suit all cleansing preferences with dermatologically and ophthalmologically approved products.
• Biodegradable Cleansing Wipes Gently but effectively cleansing the skin while maintaining its natural balance, these wipes thoroughly remove face and eye make-up, while providing the skin with refreshing moisture. These soft and gentle wipes are made with 100% renewable plant fibres, are biodegradable, and are enriched wth specially selected Organic Argan Oil and Organic Aloe Vera, esuring they are suitable for even sensitive skin.
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Daily Essentials Sensitive 3 in 1 Micellar Cleansing Water This award winning product has an innovative formula which cleanses and removes makeup, while moisturising the skin in one simple step. It respects the skin’s natural balance, requires no rinsing and is free of perfumes, colourants and parabens, making it ideal for sensitive skin.
Daily Essentials Double Effect Eye Make-Up Remover This wonder product benefits from a gentle bi-phase formula which effectively dissolves eye make-up, while caring for eyelashes and the delicate skin around eyes. The ‘oil phase’ is designed to remove waterproof mascara and eye make-up without irritation. The ‘aqueous phase’ is formulated to protect
*Nielsen ROI Extended Scantrack 52 week data to 17th June 2019 (Copyright © 2019, The Nielsen Company).
and care for lashes without leaving any oily residue. The highly effective yet caring formula is also enriched with cornflower extract which is known for its antiinflammatory and soothing properties.
The Nivea cleansing range helps to thoroughly cleanse the skin, while gently caring and protecting its delicate moisture balance.
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52|Retail News|May 2020|www.retailnews.ie
Drinks News Teeling Whiskey Frontline Charity Bundle FOLLOWING the phenomenal response to the release of its Distillery Exclusive Whiskey supporting Front Line Heroes where the proceeds were donated to charities supporting those battling at the front line against the Covid-19 pandemic, Teeling Whiskey has decided to create a Teeling Whiskey Frontline Charity Bundle, which is available to purchase via the Teeling Front Line Heroes website (teelingfrontlineheroes.com). All proceeds from the charity bundles, bar the tax man’s take, are going to support the heroes at the front line of the battle against Covid-19.
Blacks Golden Rum wins at World Rum Awards BLACKS Golden Rum, from Kinsale-based Blacks Brewery and Distillery, won a prestigious gold award at the World Rum Awards. Husband and wife duo and founders of Blacks Brewery and Distillery, Sam and Maudeline Black originally opened as a craft beer brewery in 2013, before expanding and opening their distillery in 2015, where they began producing gin. In 2018, they made history with Blacks Spiced Rum, Ireland’s first-ever rum, made entirely from start to finish in Ireland. Continuing to add to their extensive range of awardwinning craft beers and spirits, this year saw the first bottle of Blacks Golden Rum hit the shelves, after maturing in ex Irish whiskey oak barrels for the last five years. Blacks Golden Rum was the only rum to win Gold in its category - World’s Best Column Still Rum 5 Years & Under, and the only Irish spirit to make the winners’ list. For more information, visit www.blacksbrewery.com.
Edward Dillon adds Whispering Angel to portfolio FOLLOWING the addition of Château d’Esclans, the leading Provence Rosé winery, to Moët Hennessy’s portfolio of wines and spirits, Edward Dillon becomes the distributor of the Château’s Whispering Angel, Rock Angel and Château D’esclans collection of wines in the Republic of Ireland. “The addition of Château d’Esclans and its enviable range of wines to the Moët Hennessy portfolio is a wonderful opportunity for Edward Dillon,” noted Andy O’Hara, Edward Dillon CEO. Whispering Angel (RSP €25) is the brand that stimulated much of the rosé lifestyle phenomenon, while making an outstanding contribution towards establishing rosé in today’s top shelf drinks landscape; Rock Angel (RSP €40) bears a more complex and structured taste profile, bringing it in into a more premium realm, while the Château D’esclans collection, Château d’Esclans (RSP €44), Les Clans (RSP €71) and Garrus (RSP €120) is the key collection for connoisseurs of Provence Rosé.
Jameson partners with a global 24-hour radio festival JAMESON Irish Whiskey recently announced a creative collaboration with NTS Radio for their digital age music festival, Remote Utopias. The festival, a 24-hour live radio broadcast, took place on May 2, connecting artists across the world for a series of live performances and musical experiences, with Irish artists Rejjie Snow and Maria Somerville part of the lineup, broadcasting live from Ireland.The festival was streamed straight to your sofa at nts.live with Jameson helping to support artists hit hardest by COVID 19, with the broadcast also raising funds for The Global Food Banking Network. Jameson’s co-curated shows are being made available through Jameson Connects: The Stay Inn, a virtual communal platform for fans to connect through culture, craic and curated content (jamesonwhiskey.com).
Irish whiskeys set sail for Asia AS Asia is the first region to emerge from the Covid-19 lockdown period, Walsh Whiskey’s brands, Writers’ Tears and The Irishman, are in pole position to expand, following the recent appointments of several new distribution partners. The company, led by founder Bernard Walsh, has appointed exclusive distributors for both brands in leading markets, Japan (Lead Off Japan), South Korea (Taesan Liquor), Taiwan (Dong Hsun Hsin), Singapore (Original Whiskeys) and also in Sri Lanka (Signature Ceylon Beverages). Writers’ Tears and The Irishman are already represented in Malaysia (Fortier Wines & Spirits). “We look to build strong, dynamic, mutual partnerships in each of the markets that we enter, and Asia is no different,” noted Bernard Walsh.
IINN
WW
WIN A NIVEA MEN SENSITIVE RANGE HAMPER
NIVEA MEN help tackle the five signs of skin irritation NIVEA MEN, Ireland’s No.1 Male Facecare brand are helping men to embrace their sensitive side. With 65% of men claiming to have sensitive skin, the NIVEA MEN Sensitive Range protects against the 5 signs of irritation: burning, redness, dryness, tightness, and itchiness. Specially developed to immediately alleviate dry and tight skin, the NIVEA MEN Sensitive Range will have you feeling fresh and invigorated all day long. The unique formula, which contains 0% alcohol, Chamomile and Almond Oil, moisturises and calms the skin, as well as softens stubble as it grows. The sensitive range includes a NIVEA MEN Sensitive Shave Gel, Shave Foam, Post Shave Balm, Skin & Stubble Lotion, Face Wash, Moisturiser, Shower Gel and Anti-Perspirant. All NIVEA MEN Sensitive products can be used together to prevent skin irritation and ensure a comfortable, groomed and fresh feeling for longer. The NIVEA MEN Sensitive Range is available in grocery stores and pharmacies nationwide.
TO BE IN WITH A CHANCE TO WIN THE NIVEA MEN HAMPER Just answer the following question: NAME TWO PRODUCTS FROM THE NIVEA MEN SENSITIVE RANGE?
Email your answer together with your name and telephone number to: info@retailnews.ie Entries must be received by: June 17, 2020 | Judge’s decision is final. No cash alternative given.
*Hamper content is for illustration purpose only as content will vary*
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renewable gas turns BBQ days greener
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54|Retail News|May 2020|www.retailnews.ie
On the Vine: Summer Wines
The Vine Inspiration
Jean Smullen examines what the Covid-19 pandemic has meant for off-trade wine sales and looks at ‘must stock’ wines for the summer season. A GLANCE at social media shows that food and drink is keeping the nation sane while we isolate because of Covid-19. During these strange days, the consumer is focused on sharing wine and food with friends live, via social media or through video-calling apps and is buying more of everything. In the independent off-trade, wine sales are also soaring, mainly because of the dramatic shift to online wine shopping. Wine Intelligence have updated their Global Market Report to highlight the short and long-term effects of the pandemic on wine consumption. The report states that the predicted recession is likely to halt, if not reverse, trading up and a return to value-formoney will be paramount to consumers. The Wine Intelligence report also states that once the global restrictions are over, the switch to at-home drinking will remain a medium to long-term trend. They also suggest that the pre-Covid boom for alternative and sustainable methods of wine production (e.g. natural and organic wines) may not survive the crisis, as the increasingly price-conscious consumer returns to fundamental choices and away from desirable ones. Plainly speaking, a return to brand loyalty and price monitoring. Anecdotally, some of the Irish wine importing companies have noted a significant shift back to the trusted wine brands, with strong evidence that the consumer is trading up. With sales in the on-trade down by 40%, retail is making up a little of this, especially via
independent retailers. Many Irish off licences and wine shops have been operating reduced opening hours but have moved very successfully into online retailing, which includes home delivery within a maximum of two working days. With online supermarket orders experiencing anything up to three weeks delay, the smaller independents have stepped in to fill this void, which has greatly increased their presence in terms of wine sales. It will be interesting to see if this continues when restrictions on mobility are lifted. In terms of what the consumer is drinking, global pandemic notwithstanding, don’t forget the seasonal aspect to wine; when the seasons change so do wine styles. Rosé wine accounts for approximately 5% of the Irish market; as soon as spring arrives, more of it appears. As the days grow longer and as consumers spend more time in their gardens, lighter and fresher wine styles and those that work well with barbecued food are very much in demand, as is the case every year, no matter what is happening in the world. Santa Rita Wine Estates Retail News spoke to Terry Pennington of Santa Rita Wine Estates, Ireland’s fastest growing wine brands. Santa Rita have invested enormously here in terms of price promotion and sponsorship activities. As a result, Santa Rita have achieved the highest overall sales through their stable of wine brands which includes Carmen, Dona Paula, Santa Rita and Sur Andino. Terry told us
that nearly 40% of the bottled Sauvignon Blanc coming into Ireland at the moment comes from Chile. Chilean producers are making a huge effort to try to segment this by creating different styles of Sauvignon in order to make the category more enticing to the consumer. Terry explained that they have been focusing on Sauvignon Blanc from their Carmen Wave series. The Carmen Wave “Left Wave Sauvignon Blanc” is a softer style of Sauvignon, with a more distinctive rounded, mineral style, made from grapes sourced in Leyda Valley. They also have the Carmen Reserva Premier 1850 Fume Blanc another distinctive unique Sauvignon Blanc. Carmen is distributed in Ireland by United Wines. The Carmen Wave “Left Wave Sauvignon Blanc” is a softer style of Sauvignon, with a more distinctive rounded, mineral style. Ampersand The low price of Prosecco makes it unbeatable in the sparkling category. Ampersand have a very stylish Prosecco from Pasqua that is gaining in terms of sales and recognition. The Pasqua Audrey Hepburn Prosecco, named after the famous film star, uses the Tiffany colour as part of the packaging.
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On the Vine: Summer Wines a new range of “celebrity” wines this summer. Following on from the enormous success of the Graham Norton range, look out for Kylie Minogue Merlot, Sauvignon Blanc & Rosé (RRP €14) from the South of France and the Sara Jessica Parker Rosé (RRP €18).
Pasqua Wines, one of Ampersand’s flagship wineries, has a host of super value offers available for May and June. This gives the brand a very distinctive and identifiable presence on shelves. Ampersand are offering a special case price (for six bottles) of €47.92 (down from €53.40) in May and June, giving an RRP of €12.95. Pasqua, one of Ampersand’s flagship wineries, will also be offering the Pasqua Le Collezioni Pinot Grigio delle Venezia (RRP €11.99) and the Pasqua le Collezioni Montepulciano (RRP €9.99) with a case price offer (per case of 12) of €81.85 for the Pinot Grigio and €78 for the Montepulciano; minimum order of four cases. They also have the Cecilia Beretta Pinot Grigio Luna at €9.99, with a promotional case price offer of €39 per case of six, with a minimum order of six cases. Barry & Fitzwilliam
The hugely successful Graham Norton wine range from Barry & Fitzwilliam. that to Canada, where just four brands exceed 60% in terms of consumer awareness, or the United States, where brand awareness is for 3% of branded wines. The wine brand is a key feature of the retail trade here in Ireland. Barry & Fitzwilliam are the distributors of many of Ireland’s top selling wine brands. Kate Barry, Marketing Manager at Barry & Fitzwilliam, highlighted a number of offers this summer for many of their key wine agencies. Villa Maria Private Bin Sauvignon Blanc will be available on offer at €11 against a standard RRP of €15.
The McGuigan Black Label range is a top seller from Barry & Fitzwilliam.
Look out for Villa Maria Private Bin Sauvignon Blanc, Pinot Grigio, Riesling & Chardonnay, on offer at €11 against a standard RRP of €15. The hugely popular Graham Norton Sauvignon Blanc and Rosé will be reduced from the standard RRP of €15 and will be on offer in May and June for a promotional RRP of €12. The McGuigan Black Label Sauvignon Blanc, Pinot Grigio & Chardonnay, which usually have an RRP of €12, will be on promotional price of RRP €9. Barry & Fitzwilliam will also be launching
One of the key factors here is the Irish consumers’ relationship with branded wine; in Ireland, consumer awareness levels for brands is over 60%. Compare
From Barry & Fitzwilliam comes the Invivo Sara Jessica Parker range.
Classic Drinks This summer season, Classic Drinks will be highlighting their Gran Baron Cava. The Vallformosa family, based in the Penedes region of Spain, have been winemakers since 1865. The family has three wineries: their Cava house in Penedès, their famous Rioja and their La Rioja wine from Argentina. Their Cava is made using Methode Champenoise and is a lovely fresh clean and crisp style. The Grand Baron Cava, exclusive to Dunnes Stores, will be on offer at €15. Look out too for the Michel Torino Estate Malbec and Sauvignon Blanc from Argentina on offer with a special priced RRP of €11.9912.99. Cassidy Wines Cassidy Wines have two new Rosé wines on promotion in May and June. The Chateau de Berne Estate in Provence was built by the Romans and today on the 1,235-acre site, they grow 300 acres of vines. There are two wines in the portfolio, Chateau de Berne Romance and Chateau de Berne Esprit. Both are on offer at a trade price (per case of six) of €14.99 (Romance) and €15.99 (Esprit) per bottle. Provençal Rosé is now one of the worlds’ most sought after wine styles. In 2007, the region of Provence exported 5m litres of their rosé globally; by 2019, sales had increased to over 30m litres. The style is dry but one of the key features is the colour, which is very pale, almost blush pink. Provence Rosé is generally fresh, light, crisp and dry. It can sometimes be austere, but the best has very attractive elegant strawberry fruits and some complexity. Consumers from all over the world (including Ireland) are happy to pay increasingly large sums for rosé wine from Provence. The Berne wines are made from a blend of red grapes, including Grenache Noir, Cinsault, Syrah, Cabernet Sauvignon and Merlot, and they are sealed with a very fashionable glass stopper, which adds to the premium look. They are both categorised IGP Méditerranée and the flavours include ripe peach and strawberry; both wines have a lovely texture, with an almost silky finish. They will certainly appeal to the growing number of Irish Provençal Rosé fans, so make sure you stock them.
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Digital School of Food
New online programme launches for food entrepreneurs After a successful pilot project, a new online food programme from Local Enterprise Offices is set to grow the number of Irish food start-ups, with expert advice on planning a product journey and route to market, through thinking about finance and how to grow sales. AN innovative new online food programme from the Local Enterprise Offices is set to boost the number of Irish food start-ups. The Digital School of Food is the first of its kind in Europe and gives food entrepreneurs expert advice and guidance, from their home, office or kitchen. The new Digital School of Food was piloted in the Dublin region in conjunction with Enterprise Ireland
and Bord Bia. Following the successful pilot, it is now available nationwide to qualifying applicants, run by the Local Enterprise Offices. The online programme is an e-learning initiative that brings producers from idea right through to start-up and grow stages. Planning a route to market The programme will give food entrepreneurs an education in planning
Maria Betts, founder of Maria Lucia Bakes, based in Rathfarnham, Dublin.
a product journey and route to market, through thinking about finance and how to grow sales, right up to expanding the business. It includes support from experts in the field, as each course has a real producer who contributes tips and advice throughout. The programme includes contributions from trade buyers in SuperValu, Musgrave and Spar, along with the likes of Domini Kemp of Itsa Food Group and food producers who have been through the system. Entrepreneurs who complete the Digital School of Food are then primed to move on to take part in Food Starter programme offered by the Local Enterprise Offices and subsequently Food Academy, which gives producers the opportunity to get their product on retail shelves. Supporting entrepreneurs “We have a proud heritage of producing world-class food in Ireland. Now, more than ever, it is vital that we support our food firms and particularly budding entrepreneurs with ambitions to start a new business,” noted Heather Humphreys TD, Minister for Business, Enterprise and Innovation. “As needs have evolved, these programmes have evolved and the online Digital School of Food is a testament to that. Aspiring food producers can now begin their journey from their own home. “The Local Enterprise Offices continue to innovate in the way that they are delivering programmes and this is extremely significant now,” Minister Humphreys continued. “They are playing a key role in helping our small businesses in this challenging economic climate and they will be to the fore as small companies rise up in the coming weeks and months.” Moulding innovation Announcing the new platform, chair of the network of Local Enterprise Offices, Oisin Geoghegan, highlighted the importance of cultivating the food sector: “Irish food is renowned the world over and we enjoy an enviable reputation
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Digital School of Food Local Enterprise Offices THE 31 Local Enterprise Offices, which are funded by the Government through Enterprise Ireland, are located in local authorities nationwide. The Local Enterprise Offices play a key role in fostering start-ups and business growth locally, offering a range of financial and mentoring supports to new businesses and existing small businesses that want to grow. In 2017, Local Enterprise Office client companies created over 3,600 new jobs across the country. They run several programmes throughout the year to encourage entrepreneurship, including Local Enterprise Week, Ireland’s Best Young Entrepreneur (IBYE), National Women’s Enterprise Day, the National Enterprise Awards and the Student Enterprise Programme (www.localenterprise.ie]. Lucy Ewins, founder of Maisha Coffee, based in Dublin.
“
Now, more than ever, it is vital that we support our food firms and particularly budding entrepreneurs with ambitions to start a new business.
challenging. The Local Enterprise Offices are there to support those who take the programme. Following completion, participants can move on to more advanced programmes, such as Food Starter and Food Academy, as well as further supports such as management development and assistance in raising funding for their small business. The Digital School of Food is a game changer
for food entrepreneurs and will enable aspiring entrepreneurs to learn best practice in setting up a food business.” The Digital School of Food is the latest support established for food entrepreneurs in Ireland by the Local Enterprise Offices, following on from Food Academy and Food Starter. For more information on the Digital School of Food go to www.DigitalSchoolofFood.ie.
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for high quality food production. It is important that we continue to cultivate new food entrepreneurs and start-ups, particularly during these challenging times. The Digital School of Food is an excellent first step for anyone with an idea to establish a food production business. It will help them mould that idea to bring it to the next stage. This is particularly significant now, with many potential entrepreneurs at home, they can access this programme from anywhere. “Starting a food business can be straightforward but growing it can be
Thomas and Eileen Ashe, third generation producers of Annascaul Black Pudding, based in Dingle, Co. Kerry.
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Market Research
What future for retail market research? What is the future for market research in a post-pandemic world? asks Paul Latimer of market research consultants, Latimer Appleby. MARKET research is a vitally important discipline that is still pivotal to the way retail business is done. But even before Covid-19, the question was what is the future of research and is it heading for an existential crisis? But with Coronavirus still with us, we consider its future now. Everyone knows a bit about marketing; in fact, I’d go so far as to say a lot of us see ourselves as marketing experts, even those of us who don’t work in the industry. The same might be said increasingly for market research. How things have changed over the years! I can recall back in the 1980s, if you went to a restaurant, you might be asked how your meal was at some point, perhaps halfway through your main course, and again when you got the bill. But that was about it. And, it was really more about pleasantries than trying to gain real insights.
But nowadays (i.e. pre Covid-19) few of us will not have come across the ‘tell us what you think’ kind of feedback research. In fact, I’m not sure which shops didn’t already ask for this sort of feedback, so what is driving this? Incidentally, ‘tell us what you think’ surveys are not, in the strictest sense, market research i.e. they don’t hold up scientifically, they can’t be used to provide accurate results as there is no control over who replies. For example, you could for instance finish up with all male respondents between the ages of 26 and 32, which may not be your key
Analysing market research data can be key to maximising profitability and identifying which categories and brands are performing well, and more importantly, which are underperforming.
target market. In addition, the questions are often not formed or written in any scientific way, in that they are usually very simplistic. The evolution of research In the distant past, shopkeepers knew their customers. They knew them by name and they knew their needs, wants and habits. It meant that the smart retailer was able to tailor his or her product or service to each customer. With the growth of the mass market in the 20th century, it became increasingly difficult for brand owners, or service providers, to get the sort of information they wanted back from their customers, so market research came into its own. By the early 21st century, as well as using market research, it was common to use service measurement companies to assess service delivery in places like shops, pubs and restaurants. These used so called ‘mystery shoppers’. But the cost of running these programmes was not cheap, and questions were raised by clients about ‘who’ were these mystery shoppers, i.e. were they real consumers or were they actually professional shoppers? In short, they asked if the results were valid. They wanted feedback from real people, real customers, and so the age of the actual consumer giving feedback took off.
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Market Research
About the author:
The future for telephone research doesn’t look great, argues Paul Latimer. Free feedback? Nowadays, as I say, we are all bombarded by requests for feedback, via email, via text message, or by a line printed on your till receipt, that asks for some feedback in return for some chance to win some vouchers via some sort of prize draw. Hmm, any takers? This is all good, I hear you say. Well, yes, and no. You see, what clients were prepared to pay for in the past, using mystery shopping companies, they now expect to get for free. Of course, none of this is really for free, since the systems need to be put in place to manage the programmes, but the key thing is professional researchers are effectively out of a job. And when eventually everyone tires of giving their feedback for free, realising that nothing much is done with it other than to use the ‘good’ results, and bury the ‘bad ‘ones, then people will think twice about giving their feedback for free at all. Hanging on the telephone That’s one aspect. Now consider telephone research. Few of us have not been hounded by the spam caller, whether from a big telecoms company, an insurance company or another service provider. An article in one of the Sunday papers referred to the landline as the annoyance in the hallway. Increasingly, we use our mobiles, and so a call to the home landline unfortunately is often either from an elderly relative or from a hoaxer. This may be an irritation to a lot of us, but consider the market researcher, the researcher who specialises in telephone research, telephone research that depends on making calls to landlines. Clearly there are other options, e.g. for telephone researchers to make more calls to mobile phones. However, as we know, mobile phone numbers give no indication of the location of the user, so location-targeted random digit dialling
will not work for telephone calls to mobile numbers. This may not be the end of telephone research just yet, but the outlook doesn’t look good. Face-fo-face research Well how about face-to-face research involving traditional survey methods, intercepting people as they exit retailers or shopping centres, surely that was pretty healthy pre-Covid-19? Well it was, but to use that oft used cliché, ‘none of us are getting any younger’. Never was this truer than for the market research interviewer community. In fact, what is happening is that more and more of the most capable, most experienced and hence best researchers are retiring, but crucially they are not being replaced by younger researchers. The result is that this is a dying skill. Research companies are increasingly turning to ‘cheaper, more available resources’ i.e. students. Again, all well and good, you may say, and I know many are trustworthy and in time they could even become skilled. However, it is more likely that they will move into some other form of full-time employment, and they will leave market research behind. But even so, comparing them to skilled, trained, experienced researcher interviewers is just not fair. Much of this is driven by cost considerations and the need to do things more effectively and I dare say online. Countless young marketers will have made use of social media to conduct ‘free’ market research. But the thing is this: once the novelty of completing those online surveys and those ‘how did we do?’ requests for free has worn off, where will we turn to in order to get our market research done? By that time, is it possible that the role of the traditional market researcher will have disappeared completely? And it won’t necessarily be an easy thing to start up again. The good news is that
PAUL Latimer is an experienced market researcher. Having held a number of marketing roles in a wide variety of industries, he moved over to focus on market research from the agency side in 2004, before setting up his own market research consultancy, Latimer Appleby, in 2012. He is a graduate of the University of Birmingham, and holds several diplomas, including those from the Chartered Institute of Marketing (CIM), the Market Research Society (MRS) and the Institute of Data & Marketing. He is a Certified Member of the MRS, and a Fellow of the CIM. For more information, see www.latimerappleby.com. marketers are generally very bright people and I’m sure they will find other ways to conduct research but maybe, just maybe, we should expect to see some huge changes in the research industry in the coming years ahead. Seismic shifts in market research These thoughts were penned even before the current global pandemic. Latest figures show that in general terms, grocery shopping is healthy, up 3.3% year on year, but this hides some significant shifts. We are seeing continued huge growth in online grocery shopping; people are shopping more locally to where they live. Latest data from Tesco shows are habits have changed again and we are now more likely to grocery shop once a week. So what things will we have to consider in the future when it comes to, for instance, face-to-face research? Can we apply social distancing when we interview shoppers in a retail environment? Will we see market researchers in full PPE? I can only think that things for market research might look even more bleak as we battle our way through this most unpredictable of times. My message to all businesses out there is simple: market research, use it or lose it.
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STAPLETON’S FLOUR POWER ANSWERS ALDI’S CALL! WITH so many households taking to baking in a big way, keeping flour on the supermarket shelves has been a real challenge. Stapleton’s Bakery, based in Roscrea, Co. Tipperary, and who supply Aldi with nine fresh bread lines, including Handmade Irish Pitta Bread, has added another essential product to its business, supplying 142 Aldi stores nationwide with two varieties of flour, 1kg plain or 1kg wholemeal. “This is a perfect example of the close relationship that exists between Aldi and our suppliers,” said John Curtin, Group Buying Director of Aldi Ireland. “With such a demand for flour, we are very happy to be able to have extra product on the shelves of all 142 Aldi stores - Joe and his team at Stapleton’s Bakery have done a great job turning this around in such a short space of time.”
CIRCLE K LAUNCHES ‘LITTLE THANK YOUS’ INITIATIVE CIRCLE K has launched a new community initiative to give special recognition to the people in Ireland who are working hard to keep the country moving right now. ‘Little Thank Yous’ gives customers the chance to send a gift to someone who they feel deserves a thank you for their efforts to support their local community, from health professionals to teachers, delivery drivers or business owners who have donated food to a local cause. Customers visit circlekthanks.eu/ie and personalise a message and share a gift link, which can be sent to up to five of their ‘heroes’. When the customer’s chosen ‘hero’ opens the link to redeem their gift, they will be provided with a list of beverages from Circle K’s in-store product range that they can redeem for free in sites across Circle K’s company owned store network nationwide.
INITIAL HYGIENE’S INNOVATIVE ANTIBACTERIAL DOOR HANDLE SOLUTION INITIAL Hygiene has developed an innovative solution for businesses to counteract surface contamination. The HygenicTouch Door Handle is an antibacterial door handle cover that uses silver ion technology to eliminate bacteria, by working immediately to destroy any microbes deposited onto the surface by users. Its purpose is to reduce cross-contamination from one user to the next, ensuring that the handle is clean for all users. Initial’s hygienic door handle solution can fit any type of door handle (lever, push plate or pull handles), and can be installed in 60 seconds. It requires no alterations to the structure of the door.
MRS DOYLE’S TEA IN ALDI
IF ever there was a time for a decent cup of Mrs Doyle’s tea, it’s definitely now, and the good news is that Mrs Doyle’s tea is available in Aldi since May 20. Over the years, Mrs Doyle has had many offers to bring her famous Irish tea blend to the big island but it seems she knew there would be a time, and a place, and it’s definitely now, as she partners with Aldi Ireland. With each pack sold, there will be a donation made to help children in the developing world make it through the present crisis.
JAVA REPUBLIC CAMPAIGN SUPPORTS PIETA JAVA Republic has launched its ReLeaf Campaign, which will see the company donate €1 from every box of tea sold online to Pieta, throughout the month of May. The Covid-19 pandemic meant that Pieta had to cancel its largest annual fundraising campaign, Darkness into Light, and instead is appealing to others to help spread its messages of solidarity and raise awareness of the work it does. “We have always been huge advocates for the tremendous work Pieta does within our society. Now more than ever we need to be mindful of our own mental health and get help and support if needed. We’re privileged to be in a position to support Pieta”, said Grace O’Shaughnessy, Managing Director of Java Republic.