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Something New Something Blue
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ZEBRA PEN JOIN FORCES WITH BANAGHANS WHOLESALE
■ inside view Healthy Competition in the Grocery Sector The Competition Authority has released two reports, which review the Irish grocery trade. The first report, ‘A Description of the Structure and Operation of Grocery Retailing and Wholesaling in Ireland: 2001 to 2006’, provides a description of the market structure at the wholesale and retail levels of the Irish grocery sector, while the second report, entitled ‘Price Trends in the Irish Retail Grocery Sector: A Description of the Evolution of Retail Grocery Prices between 2001 and 2007’, considers the impact of the removal of the Groceries Order by examining the evolution of the aggregate retail grocery price trends since 2001. The first report found that the number of retail outlets in Ireland has almost doubled since 2001, with a corresponding increase in floor-space. This means that Irish consumers are being served with more options than ever before when it comes to groceries, which can only be good news for the consumer. Report No. 2 had some very interesting results in terms of pricing, specifically when it came to price trends for Groceries Order items and Non Groceries Order items, which appear to have behaved differently both prior to and since the removal of the Groceries Order. Specifically, when grocery prices were rising, the price of Groceries Order items tended to rise more rapidly than Non Groceries Order items and when the prices of grocery items were falling, the prices of Non Groceries Order items tended to fall more rapidly. See our News Report on Page 4 for more details. Elsewhere this issue, we look at the advent of Ireland’s first ethical water brand (Page 16), Karen Meenan explains two ways in which retailers can cut costs (Page 24) and Barrister at Law Cormac O Neill examines the nature of contract law (Page 59). “Celebrating 50 years serving the Kathleen Belton, Editorial & Marketing Director.
Irish grocery trade.”
Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com Editor: John Walshe
johnwalshe@tarapublishingco.com
Chief News Reporter: Pavel Barter
Wine Correspondent: Jean Smullen
Financial Correspondent: Carmel Linnane
Advertising Manager: Aaron Stewart
Zebra Pen UK is delighted to announce their new distributor partnership in Ireland with Banaghan Wholesale Ltd. A Japanese manufacturer of writing instruments for 110 years, Zebra Pens have been trading in Europe since 1991. The company’s J Roller helped launch Zebra Pens into the European writing instrument market, followed by Jimnie Gel in 1992. 1999 and 2000 saw the launch of the phenomenally successful Supermarble 3 colour Gel Ink & Sniff Itz scented gel pens. An established supplier in the UK, Europe & Ireland, Zebra Pen have a strong presence within the multiple and independent retail channels. As well as its core range of gel, liquid ink, ball pen, markers, correction & mechanical pencils, the new Expandz metallic compact pen was a runaway State a the brand new to Irish monthly successisin lead-up Christmas. All core products are available magazine with emphasis on inthrough Banaghan distribution.
depth coverage of music and Zebra also culture, have a summer popular as well as advertising campaign planned strong visual impact.
for 2008, including a heavyweight cricket sponsorship inState the UK. is the point where
commercial With Banaghan’s music excellent network of sales & with magazines cross distribution, Zebra are specialist titles, confident of making a much astronger publication that all impact ontreats the Irish stationery market. genres and styles with enthusiasm, knowledge and Watch out for strong promotional offers & free superb presentation. sample in the July/August edition.
Advertising Executive: Rory O’Connor, David Kelly
T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2. Tel: (01) 2413095. Fax: (01) 2413010. ISDN: 01 2413050 Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Subscription to Retail News: €110 plus VAT Email: tracy@tarapublishingco.com Origination by: Rooney Media Graphics
Printed by: Graham & Heslip
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Contents April 2008
News 4 Competition Authority Releases Report into Irish Grocery Prices.
10 SuperValu Achieves Record Sales of €2.2bn; Chairman of Bord Bia Brand Forum.
day, perhaps without realising it.
Shop Profile 14 Carl Bowe’s Daybreak
gossip from the trade.
Shelf Life 64 All the latest news and
store in Fiddown, Co. Kilkenny, has proved a thriving concern since opening just over a month ago.
4 5 BWG Buyout of Mangan’s Wholesale.
6 Minor Threat to Tobacco Retailing.
7 Heineken Ireland Awaits Decision on S&N purchase; Bank Targets Retailers with €500m Fund; Green Isle Invests €5.2m in Job Creation.
8 Londis Sign Forecourt Deal; Irish Food Manufacturers Must Innovate to Fight the Squeeze.
The Retail News Interview 16 We talk to Duncan Goose, founder and managing director of Global Ethics, the company behind the launch of One Water, Ireland’s first ‘ethical’ bottled water brand.
Karen Meenan’s Top Tips 24 Retail consultant Karen
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ways for retailers to improve their profitability, wage costs and over-stocking of slow-moving lines.
Deli 41 The growth in deli remains strong, with everything from breakfast rolls and sandwiches to evening meals now catered for at the more progressive deli counters.
Meenan looks at two simple
Money Matters 52 Carmel Linnane advises
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on how to deal with suppliers and banks, from seeking additional funding to negotiating discounts.
9 ECR Ireland Annual
Contract Law 5 9 Barrister at Law
Conference; Bord Bia National Horticultural Food Quality Awards.
Cormac O Neill writes on how we enter into legally binding contracts each
Regulars 12 Industry News 28 Drinks News 61 Update 62 What’s New Sectoral Reports 18 Ice Cream 30 Organic Food 36 Smoothies 38 Juice 46 Personal Care 54 Yellow Fats 57 Oils
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Competition Authority Into Irish Grocery THE price trends for Groceries Order items and Non Groceries Order items appear to behave differently prior to and following the removal of the Groceries Order, according to a new report from the Competition Authority. Following the Government’s decision to abolish the Groceries Order in March 2006, the Competition Authority was asked to review and monitor the structure of the grocery trade on an ongoing basis in order to see how it responds to the new legislative environment. The Competition Authority subsequently initiated the Grocery Monitor Project, and has published the first two reports in the initial phase of the project, with one further report to follow at a later date. The first report, ‘A Description of the Structure and Operation of Grocery Retailing and Wholesaling in Ireland: 2001 to 2006’, provides a description of the market structure at the wholesale and retail levels of the Irish grocery sector. The second report is entitled ‘Price Trends in the Irish Retail Grocery Sector: A Description of the Evolution of Retail Grocery Prices between 2001 and 2007’. In this report, the Competition Authority has considered the impact of the removal of the Groceries Order by examining the evolution of the aggregate retail grocery price trends since 2001.
Tara Buckley, RGDATA Director General. 4
The third report to be published in the current phase of the project will be ‘The Retail Planning System as Applied to the Retail Grocery Sector: 2001 to 2006’. According to Competition Authority Chairperson, Bill Prasifka, “The Grocery Monitor has facilitated a comprehensive mapping of the retail and wholesale levels of the grocery supply chain, an analysis of the competitive dynamic as well as an examination of aggregate price trends and the principal drivers of grocery inflation. “The exercise has revealed a number of bottlenecks in the grocery sector which will require continued monitoring by the Competition Authority and other consumer groups. I would like to acknowledge the tremendous co-operation received from each of the stakeholders involved, all of whom embraced the project enthusiastically.” RGDATA has welcomed the publication of the reports. According to its Director General, Tara Buckley, “They highlight that we have a strong, dynamic and efficient independent retail grocery sector, which plays an important role in delivering choice, convenience and value to consumers. “I also welcome the finding from the Competition Authority that there has been a rapid growth in the level of shopping provision since 2001. This is a sector that has seen rapid growth, consolidation and change. It is noteworthy that independent retailers have been to the fore of that change, anticipating and addressing consumers’ needs and requirements. The independent retail grocery sector plays a vital role in giving consumers choice, competition and value – I am confident that my members can continue to serve this vital role.” Musgrave Group also welcomed the publication of the reports, in particular noting the Competition Authority’s recognition of the significant pro-consumer developments in the sector – including the doubling of floor space since 2001. “On the basis of the Report, it can be
said conclusively that the grocery sector is highly competitive and that the consumer is clearly the real beneficiary,” noted Chris Martin, Musgrave Group Chief Executive. “We, in Musgrave, are proud of the role played by our entrepreneurial retail partners and our brands in bringing real value, choice and service to consumers in both urban and rural communities across the entire country. We continue to work hard with our retail partners to ensure that this offer remains attractive to shoppers.” The Competition Authority’s findings were most interesting in regard to the pricing patterns of items which were covered by the Groceries Order and those not. Specifically, when grocery prices were rising, the price of Groceries Order items tended to rise more rapidly than Non Groceries Order items and when the prices of grocery items were falling, the prices of Non Groceries Order items tended to fall more rapidly. During the nine month period following the removal of the Groceries Order, the price trends for Groceries Order items and Non Groceries Order items appeared to behave very differently. The price trends moved in opposite directions, with the price of Groceries Order items falling and the price of Non Groceries Order items rising. For the period from April 2006 to December 2006, i.e., the 9 months following the removal of the Groceries Order: - The price of Groceries Order items decreased by 1.5%; - The price of Non Groceries Order items increased by 2.4%; - The price of all grocery items (Groceries Order and Non Groceries Order items) decreased by 0.6%; - The CPI, covering prices of all consumer goods and services, increased by 2.9%. In the initial period following the removal of the Groceries Order, the principal drivers of the downward price trend for Groceries Order items appear to have been alcoholic products, bread and cere-
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Releases Report Prices als, sugar, jam, honey, chocolate and confectionery. For Non Groceries Order items, meat and vegetables tended to be the principal drivers of the upward price trend. However, since the beginning of 2007 the price trends for Groceries Order items and Non Groceries Order items appear once again to behave similarly, with both trends rising. Toward the end of 2007, the rise in the price of Groceries Order items is steeper and this has been attributed to the rise in world commodity prices of certain agricultural products such as wheat. For the period from January 2007 to November 2007: - The price of Groceries Order items increased by 5.1%; - The price of Non Groceries Order items increased by 1.5%; - The price of all grocery items (Groceries Order and Non Groceries Order items) increased by 4.0%; - The CPI, covering prices of all consumer goods and services, increased by 4.7%. The Competition Authority’s first report examines the structure and operation of the retail and wholesale levels of the grocery sector. In terms of the wholesale sector, it found that over 95% of wholesale turnover in the Irish grocery sector is attributable to seven groups of operators. In 2006, the combined turnover of these seven operators was €4.7bn, of which, €3.6bn was due to the sale of groceries. The wholesale level of the grocery supply chain is highly concentrated with the two largest wholesaler-franchisors, Musgrave and BWG Foods, together accounting for almost 80% of the €3.6bn wholesale groceries turnover in 2006. Over the period of the Competition Authority’s analysis, the relative position of each of the wholesale groupings was unchanged, and no new wholesaler-franchisors entered the sector. Entry on any significant scale seems difficult. In terms of the retail sector, the Report found that there has been considerable
Chris Martin, Musgrave Group Chief Executive.
expansion by the main retailer groupings. The number of outlets belonging to the multiples has almost doubled since 2001. Similarly, the number of retailers operating outlets under a brand licensed by a wholesaler has almost doubled. The number of independent retailers (retailers not affiliated to a wholesaler) has fallen considerably since 2001 and reflects a much longer term trend in the sector. Retailers are evolving to satisfy different customer requirements. The larger operators tend to serve the one-stopshopper while the smaller operators serve a convenience function. However, the larger operators are beginning to move into the convenience sector. The significant expansion by the multiples appears to be driven by demographic factors, i.e., population growth has facilitated the expansion in the number of larger supermarkets. As part of the project, the Competition Authority met various stakeholders, including representatives of the Department of Enterprise, Trade and Employment, the National Consumer Agency, major participants in the grocery sector, trade associations and others. The Competition Authority also met with representatives of the 13 largest retailers and wholesalers in the Irish grocery sector, and sent a questionnaire to 230 small retailers.
BWG Buyout of Mangan’s Wholesale BWG Group has agreed a deal to acquire the business of Mangan’s Wholesale, in a deal valued at around €40m, subject to regulatory approval, which is expected to take some months. Commenting on the proposed acquisition, Leo Crawford, Group Chief Executive, BWG, said: “Mangan’s is an excellent business with a long and successful track record and represents a natural extension to BWG’s Irish operation.” The deal, were it to come to pass, would see BWG take over the business of Mangan’s Wholesale, including all Mace stores in the west of Ireland and all Vivo stores countrywide, as well as the Mangan’s cash and carry network. However, it is unclear whether the new deal would lead to job losses in Mangan’s or if Mangan’s Cash & Carry branches would be re-branded as Value Centres. Gabriel Mangan, Chairman of Mangan’s Wholesale, said that he and his fellow shareholders, his brothers Terence and Leo Mangan, had decided to complete the deal because “after more than 75 years operating as a wholesale food supplier to the independent retail and foodservice sectors, we believe that now is the time to align the business so that it will have greater scale and resources.” The deal also has potential implications for Stonehouse, Ireland's independent wholesale group, which operates as a collective buying force and counts Mangan’s as one of its primary members. “The Board of Stonehouse has been aware of the possible takeover of Mangan’s Wholesale for some time,” Tom Shipsey, Stonehouse Chief Executive, told RETAIL NEWS. “Until any acquisition is completed, it would be inappropriate to make any comment at this juncture. We have shown great success in the independent retail and foodservice business throughout Ireland and our members are confident that Stonehouse will continue to compete and grow this business over the coming years.”
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Minor Threat to Tobacco Retailing A NEW report has revealed that 48% of tobacco retailers are willing to sell cigarettes to minors, news that a retail representative group has called the “final wake-up call for every single retailer to get their house in order”. Last August, the Office of Tobacco Control (OTC) undertook research across 1,526 shops and licensed premises in Ireland, revealing that only 52% of retailers refuse to sell tobacco to children under 18 years of age. As a result of the report, the Convenience Stores and Newsagents Association (CSNA) have engaged companies to carry out test purchases of its members. “We’re going to have three visits per member outlet,” explained Vincent Jennings, Chief Executive of CSNA. “Underage people will enter the shop and then be observed as to whether or not the sale goes ahead. We are advising people in advance and we’re checking whether it is a straight-out refusal or a refusal based on a request for age or ID. We then give reports to the members: if they fail on the first visit, we make them aware so they can take action.” The initiative is intended to inform shop owners as to whether or not their
Vincent Jennings, Chief Executive of CSNA.
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staff take correct measures to prevent sales to underage people, since the OTC report did not inform those 48% of retailers who sold cigarettes to minors. Three visits are implemented in each shop in order to inform a shop owner as to the seriousness, or not, of the problem. The OTC report revealed that 45% of stores had confectionery beside tobacco displays, 40% had cigarettes displayed on open shelves, and refusal rates were lowest in forecourts, where 54% of minors were able to buy cigarettes. The Office undertook the survey by employing children under 18 years of age. In the past, such methods have been criticised as entrapment. Jennings, however, insists that not only was the Office’s analysis of retail outlets as a proportion of the country accurate, but its method of collating the data was legitimate. “The High Court has accepted that it is a legitimate social function and it is the only way of testing. The word entrapment is passé. As long as the protocols of the Health Service Executive (HSE) are held to, they are perfectly entitled to do it,” he said. Jennings said that had the HSE carried out
the exercise, 700 retailers would currently be receiving summonses. Indeed, there is an economic rational for a retailer’s compliance. “At the moment, a retailer gets a court appearance and a fine. After the Minister commences the order, on conviction your name is removed from the [tobacco] register for a period of three months. The judge does not have discretion in this matter. There isn’t a retailer in this country that doesn’t rely on tobacco to make ends meet. Between 15% and 18% of sales in every convenience shop in urban areas is tobacco. For a small shop with a turnover of €20,000: up to 20% will be cigarettes. That’s bringing up to €350 in profit into the shop every week. Lose 13 weeks of that, that’s €4,550 lost, plus your €3,000 fine, plus costs. You’re now losing up to €8,000.” Furthermore, statistics show that people who buy tobacco also buy a considerable amount of other products. In the event that a shop is prevented from selling tobacco, it will also lose these customers, who are likely to develop other patterns of buying by the time the outlet is back in business. The “name and shame” stigma can also affect a retail business. “You may as well put a ‘For Sale’ sign up,” said Jennings. As part of their survey, the OTC also found that 92% of stores visited had some form of tobacco advertising, even though, among 1,034 people spoken to, almost two-thirds supported a ban on tobacco advertising in stores.
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Heineken Ireland Awaits Decision on S&N purchase HEINEKEN Ireland is holding out for approval of Heineken and Carlsberg’s purchase of Scottish & Newcastle. While the European Commission approved the acquisition for Belgium, Britain, Finland and Portugal, it has referred it to the Competition Authority in Ireland, due to a potential risk to competition. S&N's Irish subsidiary, Beamish & Crawford, is based in Cork, as is Heineken Ireland. B&C employs 160 people in the town, in a brewery that dates back to 1602, while Heineken employs 425 at the former Murphy Brewery. “In terms of a possible timescale, we could be looking as far down the road as August [2008] until we get a decision on this,” Declan Farmer, Corporate Affairs Manager, Heineken Ireland, told RETAIL NEWS. “We are committed to implementing all aspects of the acquisition process: as it effects Ireland, it means the merger of the B&C operations and Heineken Ireland.”
Farmer would not comment on how such a merger might affect B&C, which brews Beamish Stout. “Yes, the two breweries are in the same town, but we are unfamiliar with [B&C] operations. We haven’t seen the financial details of the operations. At this stage, our focus is on working with the Competition Authority in bringing this matter to a satisfactory conclusion, and also in ensuring that all aspects of the transaction are in line with regulatory codes in Ireland.” Do retailers who have worked with B&C brands over the years have anything to fear? “These processes do bring with them an era of uncertainty,” admitted Farmer. “All we can try and do is expedite this as quickly as we can. Suffice to say, the Competition Authority, in reaching its decision, will be in touch with a lot of the stakeholders in the industry. The sooner a decision is made, the better it will be for everybody. But we are optimistic about the whole process.”
Green Isle Invests €5.2m in Job Creation GREEN Isle Foods Ltd, part of Northern Foods plc is to invest €5.2 million in new job creation, training, and management development. This investment, with support from Enterprise Ireland, will lead to the creation of 70 new jobs over the next three years at its frozen pastry business, based in Portunmna Co. Galway. These jobs are comprised of direct production, production management and support roles.
Bank Targets Retailers with €500m Fund BANK of Scotland (Ireland) are launching a €500m fund to help small and medium sized businesses expand their operations in 2008. John Rohan, Divisional Director of Business Banking, told RETAIL NEWS that the scheme is ideal for retailers. “We see retailers as one of the key categories,” he noted. “The fund is geared toward businesses that are expanding: a retailer might be opening or upgrading new premises. There is a minimum loan size of €500,000, so they would have to be involved in either refinancing existing debt, or doing a total fit-out for a new premises.” According to the bank, 57% of small to medium sized enterprises believe that growing their business is a priority in 2008. “It may be a defensive spend,” Rohan contended. “When times become a bit more challenging, people decide to upgrade their business. They may just be spending money to defend their territory.” But why avail of the Bank of Scotland (Ireland), when there are numerous competitors to choose from? “The key reason is we provide a quality service,” said Rohan. “The fact that we put together this fund demonstrates our confidence in the sector.” For more information on the bank’s SME Expansion Fund, contact Elizabeth McMahon on 01-2674528, or contact one of the bank’s five regional offices around the country.
Glanbia Packs a Profit
Minister for Enterprise Trade and Employment, Micheál Martin T.D; Kevin Treacy, Green Isle; Dick Lenihan, Head of Food Division, Enterprise Ireland; and Gary Walsh, MD, Green Isle.
GLANBIA profits are on the up. The food group has reported a 34% rise of pre-tax profits in 2007 – up to €99.5m, from €74.4m the year before - in its international food ingredients and nutritionals business. Irish operations were reported to account for 34% of group sales, worth €803m.
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ADM Londis Sign Forecourt Deal ADM Londis are strengthening their presence in the forecourt sector, after a deal with Texoil is to lead to 20 new sites by the end of 2009. The deal is reported to bring additional retail turnover in the region of €50m to ADM Londis, creating 300 new jobs in the process. As part of the agreement, new Londis branded concept stores will roll out across 10 existing forecourt locations in Munster and Connaught this year. The first two will open by the end of June. The other 10 stores will roll out during 2009. This announcement “marks a significant step for ADM Londis,” said Stephen O’Riordan, Joint Chief Executive, ADM Londis plc. “The strengthening of our nationwide fore-
court retail presence is a positive move, developing a new outlet for our innovative concept stores and reinforcing ADM Londis plc’s position as an established player in the Irish grocery retail market. Increased competition has meant that every symbol group in Ireland has had to examine its position and develop its offering. No one group can rest on its laurels as retailers and consumers alike demand continued innovation and quality.” Texoil is Chevron Ireland’s largest Texacobranded oil distributor.
Pictured at the announcement between ADM Londis and Texoil were Tom Kirrane, Managing Director, Texoil and Stephen O'Riordan, Joint Chief Executive, ADM Londis plc.
Irish Food Manufacturers Must Innovate to Fight the Squeeze IRISH food manufacturers will need to innovate and create specific products for specific world markets if they are to cope with higher raw material prices and increasingly demanding terms from the major multiples, a food industry specialist with accountants and business consultants, Mazars has stated. Mazars partner Tommy Doherty says that there is strong anecdotal evidence that over the past two months, when Irish and British retailers traditionally negotiate terms for the coming year with their suppliers, the multiples are seeking much more demanding terms from their suppliers. “We are regularly hearing of instances where the multiples are demanding longer credit periods and higher discounts – and we have heard of one example where a multiple has pushed payments out from 30 days to 90 days and demanded a 2.5% discount on the invoice price. This might be an extreme example, but we believe that it is part of a trend where the multiples are passing their own higher costs back up the supply chain,” said Doherty. Add in significantly higher input costs – the price they pay to farmers for their milk alone increased by more than 50% from October 2006 to October 2007 8
Tommy Doherty, Mazars
- and food manufacturers are being squeezed at both ends. “What we are seeing more and more is the food industry being forced to absorb rising production costs,” Doherty noted. According to Doherty, to cope with this two-way squeeze, manufacturers are going to have to be more innovative and one country they could usefully look to emulate is New Zealand, whose food manufacturers have successfully devel-
oped specific products for specific tastes in specific markets. “The Irish food and drink industry was worth €8.6 billion in export sales last year and is a vital element in the Irish economy – both in terms of export sales and the tens of thousands of people employed in the industry,” Doherty noted. “To maintain export growth at a time when margins are being squeezed requires more innovation by manufacturers, and they could usefully look at how the New Zealanders, despite being located way out on the Pacific rim, have successfully reinvented their own food industry in recent years.” New Zealand’s success has been its innovative approach to new markets, particularly in Asia, where growing wealth is seeing consumers shift their eating habits from root vegetables to dairy and meat products. “The Irish food industry has to look more and more to export markets, despite the challenges of increased competition, the strength of the euro and rising logistical costs,” Doherty concluded. ”It can best achieve this by moving more and more to developing premium products and developing the ‘specific’ model – specific products for specific tastes in specific markets.”
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ECR Ireland Annual Conference A BROAD selection of retailers and suppliers from the grocery industry attended the recent Efficient Consumer Response (ECR) Ireland Annual Conference in Dublin, with the theme, ‘Working Together – Sharing Best Practice’. The conference was officially opened by Trevor Sargent, TD, Minister of State for Food and Horticulture, and featured a number of insightful presentations on the Irish retail grocery landscape. Michael McLoughlin, CEO of Amárach Research presented a paper on ‘What Next? The Changing Consumer Landscape in Ireland’. A major delivery from the Category Management Workgroup were the results of the ECR Ireland Holistic Shopper Research, a first in collaborative consumer behaviour research in Ireland. Additionally, the OSA Workgroup launched a major national collaborative audit of product availability and planogram compliance. The findings and analysis of three further ECR Ireland surveys were also released by the Shrinkage, Supply Chain and Enabling Technologies
Workgroups, revealing the level of expertise of these areas within the grocery industry and examining the industry’s state of readiness for future developments. Finally, the third successive running of the ECR Ireland On Shelf Availability General Learning Programme once again presented Pictured at the ECR Annual Conference are Ciaran successful best pracSullivan, MD, Nestlé Ireland; Trevor Sargent, TD, tices from collaboraMinister of State for Food; and Tony Keohane, CEO, tive retailer/supplier Tesco Ireland. initiatives. cery industry and its consumers” said The Co-Chairmen of ECR Ireland, Declan Carolan, General Manager of Tony Keohane (CEO, Tesco Ireland) ECR Ireland. “The issue of sustainabiland Ciaran Sullivan (MD, Nestlé ity is paramount in every organisation’s Ireland) expect that the conference will strategy.” continue to attract the most senior Keynote speaker at the event was Directors and Managers from the Jon Wright, co-founder of the hugely Grocery Industry, and will continue to successful Innocent Drinks, whose help develop best practices. presentation ‘A few steps towards sus“We aim to introduce best practices tainable smoothies’, focused on the at our conference as a consequence of increasingly important issue of susretailers & suppliers working together tainability. and collaboratively researching the gro-
Bord Bia National Horticultural Food Quality Awards BORD Bia have announced Keelings Salads as the overall winner in the Bord Bia National Horticultural Food Quality Awards for 2007. The prestigious award was presented in Citywest, Dublin as part of Bord Bia’s National Horticultural Food Quality Awards, which represented the achievement of exceptional standards in the production and handling of fresh produce. “Irish consumers are increasingly aware of the importance of fresh fruit and vegetables in the daily diet, which is reflected in the current value of €1.2 billion for the retail market for fresh produce,” noted Aidan Cotter, Chief Executive of Bord Bia. “Quality, appearance, freshness and variety
Pictured at the Bord Bia National Horticulture Food Awards in Dublin are (l-r): Minister of State Trevor Sargent TD; Andrew Wilson and David Keeling, Keelings Salads, and Aidan Cotter, Chief Executive, Bord Bia. Keelings won three awards on the night, including Bord Bia Best Grower of the Year Award 2007.
are the key principle cares for grocery shoppers, when buying fruit and vegetables. In addition, environmental issues, food miles and local produce are ever more important to the consumer. The Irish fresh produce industry could hardly be more favourably placed in relation to these trends, which will continue to present significant opportunities in the future.” The Bord Bia Awards are presented to successful participants in recognition of the achievement of the Bord Bia standards established for the horticultural industry. These standards consist of a code of practice which covers the production, handling, packing, preparation, storage and transport of produce.
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SuperValu Achieves Record Sales of €2.2bn SUPERVALU announced a record sales performance of €2.2 billion in the Republic of Ireland for 2007, a 10% increase over its 2006 performance. The results were announced by Donal Horgan, Managing Director of SuperValu, at its national conference in Killarney, which was attended by over 600 delegates. At the conference, SuperValu also announced details of job creation, investment and new store openings for 2007 and 2008. Key highlights included: • Sales for 2007 up 10% to €2.2bn with like-for-like growth of 8%; • Nine new stores opened during 2007 at an investment of €17.6m, with a further €57.8m invested in the revamp of 36 existing stores. • Over 1,300 new jobs created in 2007 across the SuperValu network. • In 2008, €25m will be invested in the opening of eight new stores, with a further €39m to be invested in the revamp and extension of a further 41 existing stores; • 700 new jobs to be created, bringing to over 13,000, the total number of people employed across the SuperValu network.
Pictured at the SuperValu Annual Conference in Killarney, Co. Kerry are (l-r): Eddie Kane, Chairman, SuperValu Retailer Council; Donal Horgan, Managing Director, SuperValu; and Ciaran Levis, SuperValu Sales Director.
“Through partnering with our entrepreneurial retailers and meeting the needs of Irish consumers by delivering a choice of top quality products, value for money and superb customer service, we are confident that SuperValu will again
make strong progress in 2008,” noted Donal Horgan.” We will continue to focus on delivering our ‘Real Food Real People’ brand position through our product offer, store design, marketing activity and our people.”
Chairman of Bord Bia Brand Forum Kerry to Buy Breeo? JOHN Noonan, Sales and Marketing Director, E. Flahavan & Sons Limited, has been appointed Chairman of the Bord Bia Brand Forum, which assists Irish Food and Drink companies build stronger businesses through branding by accessing its network of knowledge, expertise and advice. John Noonan has extensive experience in sales and marketing with over twenty years FMCG experience in the UK and Ireland.
KERRY Group is hoping to widen its portfolio with the proposed purchase of Breeo Foods, which would mean brands like Mitchelstown, Dairygold, Shaws, Galtee, Calvita and Sno would come under the Kerry umbrella. Kerry Group have proposed a €165m purchase of Breeo Foods (from Reox Holdings plc, the former Dairygold co-operative) which is currently under consideration.
Planning Ahead
Pictured are (l-r): Aidan Cotter, Chief Executive, Bord Bia, and John Noonan, Chairman, Bord Bia Brand Forum. 10
COUNTY Wexford’s new creation, the €25m Clonard Village Centre, is offering a supermarket and adjoining retail units for sale or rent. The development, located outside Wexford Town, is purported to provide a range of facilities to rival any town centre. Meanwhile, Aldi is seeking planning permission for a 59,535 square metre distribution warehouse in Mitchelstown. The proposed development will include offices and a chilled warehouse.
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Sourcing Northern Ireland food just got a whole lot easier. Give Shane a call. Want fresh food and drink ideas? At Invest NI, our specialist team can offer personal guidance on thousands of products from over 300 suppliers in Northern Ireland and can assist with introductions, sampling, menu development and much more. For any of our food and drink products, be they added value or commodities, our suppliers can provide a complete solution to your customer needs. Produced in Europe’s cleanest and greenest natural environment, food from Northern Ireland has an enviable reputation for being full of flavour and wholesomeness. The NI Food industry is also respected globally for its longstanding commitment to food that is ethical, traceable and fully accredited. Let Shane, Our Food Sector Marketing Advisor, help you bring more choice, quality and flavour to the table. shane.mcardle@investni.com +44 (0)78 1717 3516 or visit us online at www.investni.com Invest NI, Drumalane Mill, The Quays, Newry, County Down. BT35 8QS
Industry News 1
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Centra Supports the Future of Rugby CENTRA Managing Director, Donal Horgan and Munster Coach, Declan Kidney along with his squad members, Shaun Payne and Barry Murphy, Leinster’s Gordon D’Arcy and John Hearty from Connacht launched Centra’s sponsorship of Kids Rugby Summer Camps across Munster, Leinster and Connacht at the Centra Conference in Killarney. In a deal which will involve a three year sponsorship, the camps are aimed at encouraging kids to get involved in rugby from an early age. Over 5,000 kids are expected to attend the camps which will run throughout July and August. Players from the various provinces will attend the camps, where the children will learn rugby skills and be provided with a knowledge of the game, which should take them forward to adulthood and may even help identify some of the stars of the future.
Mace Puts Cycle Safety First GAY Byrne, Chairman of the Road Safety Authority got on his bike recently to help launch the Mace Cycling Safely to School Campaign with Peter Kealy, Chairman of Mace. Over 3,300 Irish and English speaking schools across Ireland have received the ‘Cycling Safely to School with the Maceys’ pack which includes classroom posters, Wall charts, and a DVD, all based around safely cycling on the road and the safe cross code. As part of the campaign, they are also running an art competition with over €25,000 worth of prizes to be won for classes, teachers and schools.
Conduit to talk for Tesco Mobile CONDUIT, the leading Irish contact centre, has been contracted by Tesco Mobile to provide a range of customer care capabilities on their behalf. Tesco Mobile is the latest addition to Conduit’s client portfolio, and the company is already the point of contact for several leading private and public sector companies, including Tourism Ireland and TalkTalk, and Vodafone in the UK. Tom Britten, General Manager Tesco Mobile Ireland, is pictured (right) with Lorraine Gleeson, Team Leader, Conduit, and Ross Scarborough, Operations Manager, Conduit.
Eva Longoria: The Face of Magnum HOLLYWOOD A-lister Eva Longoria has been announced as the face of Magnum - Ireland’s original indulgent ice cream. The glamorous Hollywood starlet, who is best known for her role as feisty Gabrielle Solis in Desperate Housewives, will be tempting ice cream fans with two new editions to the Magnum collection – Magnum Mini and Magnum Ecuador Dark. Says Eva, “I like to attach myself and my name to something that is going to be representative of me and what I like to stand for, and that’s high quality, rich, indulgence, sexy, sensual. All the qualities that the Magnum brand embodies are synonymous with what I represent.” 12
Irish Food Writers Guild Awards THE Winners of the 2008 Irish Food Writers Guild Food Awards were announced recently, including Superquinn, who were rewarded for the flavour and tenderness of their SQ Superior Quality Irish rib eye dryaged Hereford beef. Other awards went to Patrick Moran for Kerry black-faced mountain lamb; Wicklow Farmhouse Cheeses; Lavistown, a unique Irish farmhouse cheese; and The Associated Craft Butchers of Ireland for their sustained work in ensuring the survival and development of Craft Butchers and traditional manufacturing butchery skills. Pictured at the Awards are (l-r): Trevor Sargent TD, Minister for Food and Horticulture; Maírín uí Chomáin, Chairperson, Irish Food Writers Guild; and John Hempsenstall, Wicklow Farmhouse Cheese.
Industry News 2
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Gala Sponsor TV3 Event Guide GALA is kicking off its biggest-ever year of marketing activity with a high-profile TV sponsorship on TV3. Gala has committed to a one-year sponsorship of the newly revamped National Event Guide which runs from April 5, 2008, for one year. The TV3-produced National Event Guide in association with Gala will air approximately 25 times weekly and its audience will embrace many current and potential Gala shoppers. Gary Desmond, CEO of Gala Retail Services, says, “The National Event Guide gives communities a voice, informing viewers of what’s going on across the country, and at Gala, our stores are often a central part of the heart of the communities they’re serving.” Gary Desmond is pictured with TV3’s Karen Koster.
FSAI Chooses IT Force THE Food Safety Authority of Ireland (FSAI) has selected IT Force’s Managed Resources division to provide it with an IT Helpdesk Service. IT Force’s service includes a suitably qualified full-time onsite resource based out of the FSAI’s headquarters in Dublin City Centre. The resource works with the FSAI’s infrastructure manager supporting 90 end users, in conjunction with the internal IT support team. Pictured are (l-r): Joe O'Reilly, Sales Director, Managed Resources, IT Force, and Tom O'Regan, IT manager, FSAI.
Walkers Sponsors TV Now Awards WALKERS Sensations has signed up to be the title sponsor of the TV Now Awards, which will now be officially known as the Walkers Sensations TV Now Awards. The brand has signed a three-year deal and will invest €500,000 in the sponsorship over those three years. 2008 will be the second year of the sponsorship, following an initial one-year deal in 2007. The stars of Coronation Street, Emmerdale, Eastenders and Hollyoaks joined the cream of Irish TV at the Mansion House on April 12 for the awards ceremony. Pictured are (l-r): Walkers’ Marketing Manager Nicola Wells, Colette Fitzpatrick, Baibe, Brian Ormond and Orlaith Rafter.
Tesco Serves Up Gourmet Meals for Dogs
Irwin’s Bakery Breaks World Record
JUDY Wilson (right), Pet Food Buyer for Tesco Ireland, and Gwen Rafferty, Sales and Marketing Manager of Mackle Petfoods, join golden spaniel Jock to announce details of a new supply agreement between the supermarket giant and the Armaghbased pet-food manufacturer. Tesco Ireland’s 96 stores now stock McGrath – a new brand of ‘humanised’ dog food including the iconic dish, Irish Stew – which was developed over the last two years and launched specifically for the Irish market.
THE official London St Patrick’s Day celebrations this year were truly record breaking, as the ‘Proud2bPat’ campaign broke the world record for the largest number of people with the same name in one place: the name of course being none other than Patrick (or Patricia). Irish bakery Irwin’s and top Irish Chef Paddy (formerly Paul) Rankin asked all genuine and honorary Pats to stand up and be counted in a unique St Patrick's Day fundraiser for Great Ormond Street Hospital. Over 1,100 Paddies broke the record, with all funds raised going to the Hospital. 13
Shop Profile
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Profile
Daybreak Dawns in Fiddown Attracting both local trade and passing commuters, Carl Bowe’s Daybreak store in Fiddown, Co. Kilkenny, is a thriving convenience store.
Carl
Bowe’s Daybreak store in Fiddown, Co. Kilkenny, says a lot about progress, on many levels. It is located in a small town on the old Waterford to Carrickon-Suir road. When a bypass was built around the village, Fiddown entered that period when local business people were worried that the reduction in through traffic would kill trade in the village. However, things have gone full circle for Fiddown and now the main Waterford to Carrick road is so busy that anyone with any local knowledge uses the old road, bringing busy commuters right back to the heart of the village. Carl Bowe, whose background was in construction, had limited prior grocery retail experience before this project, but he was aware of just how busy the village was. With extensive building experience, Carl was in the happy position of being able to undertake works on the project for himself. However, with little knowledge of grocery retail, he needed extensive advice to get it right. Having talked with a variety of symbol groups, Carl found everything he needed with Daybreak. Daybreak is Ireland's fastest growing convenience store chain, with over 130 outlets around the country. Daybreak shops aim to provide the best choice and quality, giving customers time to get on with their lives. The
Daybreak ethos is to put the group and its stores at the heart of the community, providing customers with what they want when they want it. This ethos was the perfect fit with Carl Bowe’s plans for his new store.
Getting the Fundamentals Right According to Paul Mullen, Daybreak Area Manager, “We got involved with Carl in the very early stages of this project. He had done his research on the site and we were enthusiastic about the development. We initially engaged in a detailed design and planning phase. We took Carl to other Daybreak shops and discussed every aspect of what we wanted to achieve. Getting the fundamentals right during planning is vital to the ultimate success of the shop.” Daybreak prioritises four ‘Hero’ categories in food-onthe-go area, which was ideal for the Fiddown store. “We 14
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put a strong emphasis on Hot Food, Delicatessen, Hot Beverages and Wine,” explains Sandra Smith, Marketing Executive, Daybreak. “Focusing on superior products and promotional support in these areas ensures satisfied customers and a healthy turnover for group members.” Store manager Raphael Fontugne is extremely enthusiastic about the support the entire development received from the group: “Musgrave Wholesale Partners have been really great through this process. We have been open four weeks now and trade has grown every week. The shop has so much to offer customers: we have the deli, which is new to the village. We also have a full off-licence, DVD rentals, ATM, superior tea and coffee and Lotto, on top of the full grocery offering, as well as ample parking at the front and rear. So people have every reason to stop right here. We also provide a delivery service for customers, which is proving to be very popular, particularly for sandwich deliveries to local businesses at lunch time.”
Wide-Ranging Support Working with Musgrave provides retailers with far more than the group’s distinctive image, alongside wide-ranging support and advice. “Our comprehensive marketing and promotions programmes provide a clear and effective way of raising awareness and loyalty within the local area,” explains Sandra. “We run 13 promotional cycles per year, with innovative product offers and consumer competitions, supported by extensive point-of-sale material, handbills and advertising. Daybreak franchise holders are also supplied with a comprehensive ‘Marketing Toolkit’, brim full of innovative ideas and easily applied promotions; with more support at the end of the phone.” While Bowe’s Daybreak certainly benefits from the amount of passing traffic, its primary catchment area is the village itself, as Raphael explains. “The local people are at
Profile
the heart of this shop,” he notes. “All the services we offer are provided with them in mind. Even the passing trade here consists mainly of people who live fairly locally. We try to source goods that are produced locally and we employ people from the community. Here again, Musgrave is there to help us by offering excellent training programmes. They have also developed a training module that can be used on-line, so staff can train without leaving the shop. It’s so important to make sure staff are up to the standard of the rest of your shop, if you want to build up a loyal customer base, who don’t just see you as a shop but a part of their lives.”
Profitable Business The team at Daybreak Fiddown are looking forward to their official opening next month, which will help to spread the word about the services they can offer. “We will be able to generate even more publicity for the shop,” enthuses Raphael. “Grocery retail in Ireland is extremely competitive and you have to be at the top of your game to be successful. Although it is still early days for this shop, working with Musgrave has given us every opportunity to make this a very profitable business.” Paul Mullen adds, “I’m delighted to say Daybreak is growing very strongly. We currently have over 130 stores in the group and expect 160 by year end. In order to ensure that we continue to provide close, day-to-day support to every member of the group, we are re-vamping our Area Manager system to increase the numbers at the coal-face and keep working hard to make the group and its members’ shops stronger every day.” Bowe’s Daybreak in Fiddown is not just part of the village, it is part of its life cycle. It has brought a thriving shop to the heart of a bypassed village by FA C T F I L E filling the needs of Owner: Carl Bowe local people. Location: Main St, Fiddown, Co Kilkenny With the conSize: 3,000 square feet retail space tinued close Number of support of the Staff: 12 full time & part time Musgrave team, Opening 07:00-21:00, Mon-Thurs; it will continue hours: 07:00-22:00, Friday; to meets those 08:00-22:00, Saturday; needs, the needs of 08:00-20:00, Sunday. its community. Visit www.daybreak.eu for more details. For franchise opportunities: contact Paul Ryan on 086 6001840 or email paulry@musgrave.ie. 15
Interview
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News Interview
One Word for Ethical Water
Duncan Goose, founder and Managing Director of Global Ethics and One Water, explains the reasoning behind Ireland’s first 100% ethical bottled water brand.
One
Water is Ireland’s first 100% ethical bottled water brand. All One Water’s profits fund unique PlayPump water systems that provide clean, sustainable and safe drinking water for villages and schools in Africa. Supported by actresses Mischa Barton and Claire Goose, the launch aims to encourage Irish bottled water buyers to ‘Switch for Africa’. Encouraging the Irish public to take part in ‘Switch for Africa’, actress Mischa Barton said: “If half the people in Ireland switched to buying a bottle of One Water on World Water Day - 27 PlayPumps could be funded, providing almost 68,000 Africans with access to clean water”.
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Voicing her support for the campaign, actress Claire Goose said: “Like many parts of the world, Ireland is blessed with an abundant water supply and tends to take clean drinking water for granted. Water is always on tap for children and adults alike for drinking, bathing and sometimes even watering the garden. However, in parts of Africa, women and children spend hours walking every day to collect clean water for their families. The daily chore of collecting clean water prevents thousands of children from being children and having time to play or to get an education for a brighter future.” Currently, 1 billion people in the world have no access to clean drink-
“We donate all our profits to funding PlayPump projects: we don't offer a token donation, nor have we done this as a tactical short term promotion to try to gain and protect market share.”
ing water and 2m people die each year from diseases related to unsafe water. The worst affected are the 1.7m children who die from diarrhoea and those who lose 443m school days to water-related illnesses. Every day, women and children spend up to 40 billion hours collecting water from often contaminated and far away sources like riverbeds and wells. This could all be prevented with access to clean water. Duncan Goose, founder and managing director of Global Ethics and One, notes: “One Water provides the consumer with a transparent and easy way of giving. One’s aim is not to grow the bottled water market but rather to educate bottled water buyers to think about their brand allegiance and make the ‘Switch’ to One.”
What is the idea behind One? “One billion people in the world don't have access to clean water - we can't change that overnight, but we can change it one person, one day at a time. “One Water is a not-for-profit ethical bottled water company which donates 100% of its profits to fund unique PlayPump water systems in Africa. The PlayPump system uses roundabouts as water pumps - when children play on the roundabout, they pump water for the whole community. This guarantees ‘a child's right to play’. The PlayPump gives schools and communities a free,
Interview
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clean and sustainable water supply. In Africa, people spend an average of five hours a day walking to collect water, and globally 2m people die from drinking contaminated water, so as a result of having a clean water supply, children now go to school to get an education.”
Where did this idea come from? “A group of friends, all marketing and finance people, came up with the idea a few years ago. We set out to change one person's life and if we could do that, we'd try to raise enough money to change a family's life, then a community. In 2005, One Water was launched based on the simple premise of like for like or ‘water for water’: when consumers drink One Water, Africa drinks too. “To date, One has installed over 101 Playpumps, meaning that at least 252,500 lives have already benefited and One continues to install a Playpump every 3-4 days. “We never set out to become a massive brand, but with the support people have given One (check out the heroes page on our website www.onedifference.org), it continues to grow and change lives every day. That's something everyone who supports us should be really proud of.”
How do you propose to compete with the mega-brands already operating in the bottled water sector in Ireland? “In the same way we started in the UK: one bottle at a time. Every bottle sold is a success. From a consumer perspective, bottled water is pretty similar, irrespective of the brand you buy, so wouldn't you prefer to buy one that's going to save a child's life, or give them the chance of a better future? What we found in the UK is that people (retailers, distributors,
News Interview
food service companies, vending companies) actively want to work with us - they see the benefit from a CSR perspective, they know that they can still maintain their margins, they know consumer demand will pull through stock and they get to be part of an amazing project.”
“We set out to change one person's life and if we could do that, we'd try to raise enough money to change a family's life, then a community. In 2005, One Water was How has the brand performed in the launched based on the UK? “It's still very early days but simple premise of like given that we've covered all the bases in terms of channel disfor like or ‘water tribution, we're ahead of forecast, we've gone from 1 sku to 12 for water’: when in the space of two years, we're delighted with the success - but consumers drink One more than that, we're particularly proud of the fact that certain parWater, Africa drinks ties have seen the benefit of working with us and have taken some amazing decisions. Co-Op, for examtoo.” ple, now donate revenue from their own-label water to us, many universities have adopted us as their solus brand and other partners have integrated us into their HR programmes and now send members of staff to Africa as part of their incentive programme.”
How do you think the other brands will react to the introduction of this ethical water? “Probably the same way that they have in the UK - to try to copy what we're doing. There are a couple of key differences though, One Water (and Global Ethics Limited, the company behind the brand) was set up as a not-forprofit business i.e. we donate all our profits to funding PlayPump projects: we don't offer a token donation, nor have
we done this as a tactical short term promotion to try to gain and protect market share. Secondly, our projects are a sustainable solution to the issue of water provision - through a unique partnership, 'maintenance' funding is provided for each project other pump projects don't have this and when they break, it means the community goes back to having no water supply again”
How much money do you hope to raise from the sale of One? “The initial goal was to raise £2.74m per annum - this equates to funding a project every single day of the year. We will achieve this, this year.....and then we'll start on the next objective of raising enough money to fund two projects every single day of the year.....and so it goes on. You can pledge your support at www.onedifference.org.” One is initially being distributed through Tesco and Pallas Foods in Ireland. 17
Ice Cream
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Cream
Icy Spells Ahead With the third highest consumption levels in Europe, Ireland’s love affair with ice cream continues to develop. ice cream market, with 81.7 % of the out of home impulse singles sector, and 77% of the take home market (Source: ACNielsen, Total Market excl. Dunnes Stores, Value, MAT Dec 02 2007). HB continue to drive market trends in Health & Wellness (Frusi Probiotic Cranberry, HB Soya, Solero Smoothie Blackberry); Portion control and single serve (MP Magnum Mini, MP Cornetto Mini, Carte d’Or mini pots); Value for Money (2-litre Neopolitan, Footballissmo MP); HB Indulgence/Luxury (Carte d’Or Unilever, through its HB brand, Strawberry Delice, Viennetta Crème claims market leadership of the Irish Brulee, Ben & Jerry’s); and Freshly Made For Me (Carte d’Or Scooping, Swirl Express). Magnum ice cream is the No.1 adult indulgent ice cream brand in the impulse sector. Based on high quality ingredients this indulgent chocolate brand maintains its position with 57% market share Magnum ice cream is the number one adult indulgent ice (Source : ACNielsen cream brand in the impulse sector.
The
Irish ice cream market is valued at approx €125m (excl. Dunnes Stores) and can be broken down into two main categories, out of home impulse single purchases and takehome. The out of home impulse singles, (e.g. Iceberger, Cornetto, Magnum) sector is worth €70.6m, while the take home sector is worth €54.3m: the latter section is showing strong year on year growth of 6%.
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Premium Impulse sector MAT 8WE 30Dec 07). New Ecuador Dark Chocolate and Magnum Minis are the latest additions to the Magnum Ice cream range. Following the huge popularity in dark chocolate, new Magnum Ecuador Dark is made with smooth vanilla ice cream lavished in thick rich Ecuadorian dark chocolate with 62% cocoa content. The high quality cocoa beans are from the Foresteros Nacional and Trinitario which flourish in the luxuriant shade of the region, to produce a rare and aromatic cocoa. Magnum Minis offer all the great taste of Magnum ice-creams but in a perfect mini size 60ml v 120ml standard size. New Magnum Mini’s come in 3 new multipacks: Mixed pack (Classic, Almond, White); Chocolate & Strawberry; and Almond. Magnum has appointed a-list Hollywood star, Eva Longoria, of Desperate Housewives fame, as the spokesperson for the brand for 2008. The campaign features TV, outdoor, press & point of sale materials as well as a high profile PR campaign and a digital campaign. A whopping 84.2% of all impulse cones sold are Cornetto, which continues to be the number one choice for teenagers (Source: Lansdowne
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For 2008, HB have new flavours with exciting characters to provide excitement in the kids ice cream sector. New Calippo Lemon and Pineapple will provide ideal refreshment during the summer months. Containing no artificial colours and flavours and only 90kcals, this is a healthy ice cream for kids. Much to the delight of kids, Batman will be appearing in cinemas nationwide this July and will be a star attraction in the HB cabinets: Calippo Shots features delicious cola and lemon flavour ice drops in ultra cool packaging with a recloseable lid. Ben & Jerry’s: leading the super premium segment of the ice cream The Bart Simpson ice cream comcategory. bines two great flavours, Vanilla and 100ml single in Fruit of the Forest or Strawberry, with cool collectible lids Mango, available in HB convenience of the Simpsons playing football . cabinets. Not in the market since the ‘90s, HB is also launching a range of Feast is back, containing delicious Batman will be appearing in cinemas Soya ice cream. A delicious alternative milk chocolate coating with biscuit nationwide this July and will be a to dairy, it is ideal for those who are pieces around a creamy vanilla ice star attraction in the HB cabinets via lactose intolerant or do not want to cream, with a caramel sauce on top. Calippo Shots: Batman - The Dark eat dairy. For 2008, HB are also introducing the Knight. Valued at €9m the super premium vanilla cup: delicious vanilla ice ice cream market represents 16% of cream made from whole milk. research, Oct 2007). 2007 was a very the in home ice cream market and is In the take home sector, HB’s successful year with sales growth of the fastest growing category, growing standard ice cream is available in pint 10.5% (Source: ACNielsen MAT 8WE at 21% (Source: ACNielsen MAT Jan blocks, one and two litre tubs. Valued 04Nov 07), due to the successful 08). Super premium consists of two at €16.8m, it is the backbone of inlaunch of Cornetto King Cone.This major players, Ben & Jerry’s (60%), home ice cream and is growing in valyear, new Cornetto Choco Disc is sure Haagen Dazs (39%) and one new playue by 8%. Hazelbrook Farm is by far to excite consumers again. A delicious er Green & Black (1.2%). Ben & the market leader in this catJerry’s remains the brand leader and egory with nearly 77% maris growing ahead of the market by ket share. The biggest seller 27% (Source: ACNielsen MAT Jan 08). is Vanilla in all formats The Ben & Jerry’s range consists of (blocks and tubs), while other three formats: 500ml, 150 ml and 4.5popular flavours include litre. Raspberry Ripple, Iceberger, Every year, the company celeHoneycomb and Mint Choc. The light & diet sector offers huge growth potential within ice cream and guarantees to bring increHazelbrook Farm is by far the market leader mental buyers into the category. in the take home ice cream category. Frusi is made from frozen yoghurt, real fruit pieces and wholecaramel sauce finger runs right grain cereal. This multipack of three through the creamy vanilla ice cream is a “good for you” snack that tastes and is topped with a chocolate medaljust as delicious as ice cream. It lion with cashew nuts. Watch out for comes in three variants, Fruit of the an exciting marketing campaign to Forest, Mango & Raspberry and support this launch. new Probiotic Cranberry Frusi has HB are running an exciting text to only 3 grams of fat, contains 50% of win promotion on Cornetto for music consumers’ daily vitamin C requirelovers everywhere, with VIP trips to ments and has no artificial colours, the hottest concerts this summer in flavours, sweeteners or preservaLondon, Paris, Rome and New York, tives. Frusi will be also available in Romantica is changing its look, to a more plus music CDs every 15 minutes. ‘foody’ appeal.
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Two NEW stars in the Ice Cream Galaxy
The Galaxy Brand is in 23% growth YTD â‚Ź1m marketing support for the Galaxy Brand in 2008 - TV, Press, Sampling & PR Stock up now with two New Ice Cream sticks in the Galaxy Ice Cream range, Galaxy Almond and Galaxy Triple Chocolate
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HB has an exciting new franchise concept called Swirl’s Express available on the Irish market from the second quarter of 2008.
brates Ben & Jerry’s birthday with Free Cone Day, a sampling of Free Ben & Jerry’s to thank their loyal consumers. On April 29th, they will be sampling free ice cream in all their scoop shops. One of the key initiatives of Ben & Jerry’s is the Ben & Jerry’s Climate Change College, which trains young international ambassadors to spread the word on climate change by establishing a campaign relative to each country. 2008 marks an exciting time for new product development at Ben & Jerry’s, with the launch of Baked Alaska, featuring a white ice cream base to represent the Arctic. Every tub of Ben & Jerry's Baked Alaska helps fund their climate Change College mission in Alaska to “help freezer the melt”. Baked Alaska will be sampled around June during a sampling tour. In late 2007, Ben & Jerry’s advertised in cinema for the first time, and this will continue in 2008, with the same funky style, summarising all their social mission actions from climate change to Fair-trade. Valued at €4.5m, Carte d’Or claims leadership of the premium sector, with 44% market share. In 2008, 22
Carte d’Or offers two new 900mls tubs, Chocolate Inspiration and Strawberry Delice. As well, Carte d’Or is introducing a new multi-pack of four individual portions, which consumers can eat straight from the tub or turn up side down and serve as a delicious dessert. The ice cream dessert category is the 4th biggest ice cream category valued at €5.2M, and includes two HB legends: Viennetta and Romantica. Romantica is the second best selling ice cream in value terms, and is now changing its look, to a Mars is taking advantage of the growing more ‘foody’ appeal. multi-pack section of the market with Viennetta is improving its recipe two new variety packs: Galaxy Ice Cream Minis and ‘A little bit of…’. to a more creamy ice cream with more waves. The new packaging highlights the everyday premium-ness of the ACNeilsen MAT Nov/Dec 2007), products, while there will also be two Galaxy have introduced two new and new flavours: Caramel Crisp and exclusive ice creams. Galaxy Triple Crème Brulee. Chocolate is a seductively luscious The total soft ice-cream market vanilla ice cream with ripples of grew by almost 55% from €31m in chocolate sauce, covered in smooth 2001 to €48m in 2007. HB has an exciting new franchise concept called Swirl’s Express available on the Irish market from the second quarter of 2008. The concept incorporates fresh natural ingredients, using ice-cream, fresh fruit and natural toppings, which are then ‘Swirled’ into a delicious fresh fruit and ice-cream treat. The consumer can also choose from a wide variety of ingredients and toppings for his/her personalised Swirl. The new HB Swirl IT Express franchise concept is the only ice-cream concept using a full front counter, enabling The Galaxy ice cream range has been the consumer to have a personalised experience while visualising extended with the launch of Galaxy Triple Chocolate and Galaxy Almond. the his/her Swirl being produced, all in a compact footprint.
Mars Ireland Mars Ireland is sure to excite customers this summer with a range of brand new mouthwatering products, as well as some classics, guaranteed to satisfy everyone’s tastebuds. With Mars Ice Cream as the clear No.2 in the Irish Market and 11% impulse value share (Source: ACNielsen Oct/Nov 2007), they are an absolute must for all freezers this summer. New Starburst Smoothie comes in Berry Blast Following 30% brand and Exotic variants, with real fruit juices and growth in 2007 (Source: less than 101 calories.
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Galaxy chocolate, and Galaxy Almond is delicious dairy vanilla ice cream covered in smooth Galaxy milk chocolate with almonds. Deliciously fruity and light, the Starburst range has been extended with Starburst Smoothie, in Berry Blast and Exotic variants, with real fruit juices and less than 101 calories. Finally for summer 2008, Mars is taking advantage of the growing multi-pack section of the market and the growth in portion-ability, with two new variety packs: Galaxy Ice Cream Minis, ideal for Galaxy lovers everywhere and ‘A little bit of…’, a variety mix of Mars favourites.
Cream
the search for Ireland’s most environmentally friendly gardens.
Dale Farm
Dale Farm are continuing to drive the market through expanding their offering to the adult impulse sector, with their range of indulgent Rapture products. Made with the finest quality vanilla ice cream and rich Belgian chocolate, sales of Rapture have grown considerably New Rapture Minis: ‘Mini’ varieties of since their launch two years ago. smooth vanilla dairy ice cream Building on the success of the smothered in thick Belgian chocolate. original Mint and Almond varialready popular ants, which were first introduced into portfolio of leading the market back in 2006, the range Corrin Hill brands and we are then expanded again in 2007 with the Corrin Hill real dairy ice cream is sure that the new addition of Rapture Caramel and made by Silver Pail Dairy, a family products we have Rapture Strawberry Cone. The latest business in Fermoy, Co. Cork, in the planned for this seaaddition to the range is Rapture heart of the Golden Vale region. It is son are going to be as Minis: ‘Mini’ varieties of smooth vanilmade with fresh milk and cream, well received.” la dairy ice cream smothered in thick delivered daily from the local area Dale Farm also Belgian chocolate, the tempting and is the only ice cream targeted at has an extensive kids flavours include milk, white & dark the family market which does not conrange including new chocolate, as well Shiverin’ Shakie, a as milk chocolate refreshing strawberry with almond. flavour push up milk Dale Farm Ice ice. Shiverin’ Shakie Cream has recently the cow, joins the given an estabalready popular familished favourite a ly of Dale farm charluxury makeover. acters, which include The new Belgian Pear Picking Porky Choc Ice now and Polly Pineapple. boasts Vanilla ice Also available via cream enrobed in Corrin Hill ice cream and Natural Frozen Yoghurt has Dale Farm are opulent Dark Belgian been developed to meet the growing demand for natural Cadbury’s new chocolate. authentic products that are produced locally, using only the finest ingredients. Buttons Cone, the Speaking on the refreshing new new 2008 Dale Farm Shiverin’ Shakie, Bassetts Jelly range, Sean Conacur, ROI Sales tain vegetable fat. Corrin Hill ice a refreshing new Babies lollies and Manager, explains how the demand cream has been developed to meet the strawberry the new delicious for indulgent added value ice cream is growing demand for natural authentic flavour push up Nestlé Raspberry continuing to grow: “The success of products that are produced locally, milk ice from Cheesecake. Rapture has been great for our using only the finest ingredients and Dale Farm. does not contain artificial colours, flavours or preservatives. It is availIce Cream Facts able nationwide in 1 litre tubs, pint - Ireland has the 3rd highest ice cream consumption per capita in Europe, bricks and individual impulse tubs. third to Sweden and Finland. Who says you need sunshine to eat ice cream? Corrin Hill Natural Frozen Yoghurt - It has been scientifically proven that ice cream makes you happy. was added to the range in 2007 and is - In a recent study, 85% of Irish parents said they give their kids treat foods delicious on its own and ideal for once a day or less, but ice cream was the most popular choice as they making smoothies. believe it’s the healthier choice. Following the success of the - 83% of Irish nutritionists agree that fun foods like ice cream can help mainBiodiversity Garden Awards in 2007, tain a balanced diet. More than half surveyed said that ice cream can be Corrin Hill ice cream will again team eaten once or twice a week as part of a balanced diet. with BirdWatch Ireland to continue 23
Karen Meenan's Top Tips
15/04/2008
April08Karen
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Meenan’s Top Tips
How to Increase Your Net Profitability Retail consultant Karen Meenan looks at two simple ways to improve your profitability, wage costs and over-stocking of slow-moving lines.
Retailing
is getting tougher and tougher: there is no denying that. Many retailers are complaining that even though turnover seems to be holding its own against this time last year, the costs of running the business have climbed so significantly that net profitability is less than last year. Have you found lately that you are working longer hours and making less money? When net profit starts to decline or, worse still, when the business actually starts to make a loss, you need to focus all your efforts at reducing your overheads and managing your cash flow. So what is the main overhead in running a retail store? Wage costs are, without doubt, the biggest drain on the business. If you can manage your roster properly and maximise the 24
efficiency of everyone employed in your store, then you are at the starting point for increasing your net profitability for 2008.
Managing Your Roster How long does it take you to draw up the weekly roster? Do you use the same roster every week, except perhaps during holiday time when you need to find a replacement? Or worse, do you allow someone other than you to set the roster each week? The most cost effective way to manage your wage costs is to spend time – lots of time – getting your roster right. Start this exercise by getting out last week’s roster and count how many man-hours were used to run your business last week. If you are a smaller retail outlet, you might find that you rostered the same shifts MondayFriday – say 60 man-hours per day – when in fact the turnover changed over the course of the week, perhaps Tuesday being the slackest day and Thursday the busiest. Now record your daily man-hour totals against your daily cash lodged (don’t include agencies for this exercise
– just net sales, including VAT). If Monday man-hour totals represent 15% of your total wage bill – then that should correspond with the net sales lodged that day. If there is a difference of more than +/- 0.5% between daily sales and daily man-hours worked, then you need to adjust your roster for next week. This process might sound timeconsuming but if you set your roster according to your actual net sales then you can reduce your wage bill by anything between 0.5% and 1.5%. This might not sound like much progress, but if you are running a business with an annual turnover of €2m, it can represent a saving of anything between €10,000 and €40,000 per year. One store I worked with over the last year had wage costs of 14.4%, which over the last 10 months have reduced to 11.8%. Turnover has remained the same at approximately €40,000 per week (net sales ex agencies including VAT), but wage costs have reduced from approx €300,000 to €245,500 – a saving of over €50k for the year.
Karen Meenan's Top Tips
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April08Karen
Meenan’s Top Tips
Before and After: ordering more efficiently can help manage cash flow.
Examining Your Stock Holding Another way to increase your net profitability is to complete a forensic examination of your stock holding. What is the value of the stocks of cigarettes and wine that you are holding right now? More importantly, can you reduce this and still not run out of any of your best selling brands? I was working with another shop recently which had experienced cash flow difficulties during 2007, so much so that the shop account was running in overdraft and much of the profit generated by the store was being used to fund bank charges which compounded the situation. The easiest place to start this exercise is your cigarette cage. If you have a scanning system, print out the best/worst analysis for the yearly sales so far (that will give you a good idea of what sales have been like for the first third of 2008). In this store, the top ten
best selling cigarettes were as follows: 1) John Player Blue 20’s 2) Silk Cut Purple King 20’s 3) Benson & Hedges 20’s 4) Silk Cut Blue King 20’s 5) Marlboro Gold 20’s 6) Silk Cut Silver King 20’s 7) Rothmans Kingsize 20’s 8) Superkings 20’s 9) Carroll’s No 1 20’s 10) Major Extra Size 20’s The stock holding in his cage did not reflect his sales. He was carrying “back up” stock of all the minor brands, in some cases he had three or four cartons of slow selling cigarettes, when his sales for the first quarter showed that he had only sold 4 packets or less than half a carton in 13 weeks. The other six packets were held in the cigarette unit in the shop – enough stock to last until the end of June based on past sales, so clearly there was no need for him to carry any back-up stock at all in the cage
About the Author RETAIL consultant Karen Meenan runs her own consultancy business, Results Training & Marketing, focusing on net profit and how to maximise profit for the retailer. For more information, contact Karen on 086 6027711 or by email kmeenan@eircom.net.
Results Training & Marketing When Results Really Matter
until such time as those six packets started to move. We measured the actual sales line by line and built in enough stock holding of all the major brands so that he would never run into a worst case scenario, which is not stocking your customer’s favourite cigarette brand. When this exercise was complete, the store owner got a credit note from all his cigarette suppliers to the value of over €12,000. We did a similar exercise with his wines, beers and spirits and he was able to track and trace all his weekly sales in this department too and measure against his stock holding.
More Efficient Ordering By examining his best/worst analysis on a weekly basis over a few weeks or so, he was able to reduce his stock holding and also order more efficiently from his wholesaler to allow him to trade out of deficit in the bank, which in turn allowed him to manage his cash flow more effectively, as he no longer was in overdraft and therefore did not have to pay excessive bank charges. There is no easy way to get more net profit, but with a combination of reduced slow moving lines and a more streamlined workforce, you are well on the way to increasing your net profitability. So even if a competitor has opened up across the road from your business, take heart, you might still be able to make more money in 2008 than you did last year by spending more time focusing your efforts at reducing your overheads. Good luck!
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On the Vine
RN
15/04/2008
April08On
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The Vine
German Wines Start to Soar Jean Smullen reports on the revival of German wines on the Irish market.
Wines
of Germany have just opened a new generic office in Dublin. Working out of the German-Irish Chamber of Commerce Office, the Wines of Germany office will be headed up by Holger Erdmann. German wines are certainly seeing a revival at the moment. In the UK, sales are soaring at the top end, where German wines are the third fastest growing sector behind Italy and New Zealand, with sales up by 31%. Here in Ireland, too, German wines have become less of a mystery to consumers as evidenced by the increase in their market share. Germany produces almost two third's of the world's Riesling and the scope for growth is enormous as the latest figures for the Irish market indicate, with sales of German wines in 2007 showing a growth of 9.6% for the year.
The focus of the 2008 Wines of Germany campaign will involve working closely with the opinion leaders and the media to raise awareness of German wines here and to encourage more importers to include a German wine on their list. Germany has a viticultural history which stretches back over 2,000 years. They currently have 102,000 ha of vineyards. There are 13 German wine growing regions and the emphasis in the coming years will be on two grape varieties, Riesling and Pinot Noir (know in Germany as Spätburgunder). Plantings of Riesling, Pinot Gris and Pinot Blanc are growing in Germany and it is also getting “redder”. In 1980, 11.4% of plantings in Germany were red grapes: that figure rose to 36.9% in 2006. Globally,
Pinot Grigio THIS grape must be one of the easiest to sell in Ireland. Pinot Grigio is the Italian synonym for Pinot Gris, which was long thought to be a mutation of Pinot Noir but has recently been discovered to be a cross of the Pinot Meunier and Traminer varietals. Pinot Grigio can be made in various different styles, from crisp and dry to fruity and spicy to sweet and rich. Most examples of Pinot Grigio in Italy have a distinct level of acidity that can make for pleasant wines with notes of peaches, apricots, spices and cream. The 2007 Cecilia Beretta Luna Pinot Grigio is widely available and
26
is currently one of the most popular Pinot Grigios around. It comes from the town of Rovere della Luna in the province of Bolzano. The grape is now spreading further afield: along with Italy, Germany and Alsace, the New World is starting to embrace this grape. A good example from New Zealand is the 2007 Babich Pinot Grigio. Made from grapes sourced in the Marlborough region of New Zealand, this is a dry Pinot Grigio, barrel fermented with pear, lemon and spice flavours, tight with a lovely mineral characteristic. Cecilia Beretta and Babich are both distributed by Ampersand Wines.
Germany is the largest producer by far of wines made from the Riesling grape. Speaking at the launch of the Wines of Germany campaign, Manuela Libchen from Wines of Germany said, “While this development is positive, we feel strongly that German wine can and will do much better than the current market share, which is why we have opted for direct representation in Ireland. “Our market potential will certainly be helped by the high quality of today’s German wine and the increasing popularity, especially of German Rieslings,” she added. To date, many Irish oenophiles still have an outdated image of German wines. In recent years, however, a large-scale image and quality overhaul has taken place, with wines such as Black Tower and Bend in the River changing forever the image of German wine in Ireland.
Wine Fair Dates Thursday 1st May, 2008 South African Wine Fair - Hilton Dublin Hotel, Charlemont Place, Dublin 2. Thursday 15th May, 2008 Famly of 12 (New Zealand) Hilton Dublin Hotel, Charlemont Place, Dublin 2. Monday 26th May, 2008 Australian Wine Fair - Croke Park, Dublin 1. For more details of these and other events go to the wine diary at www.jeansmullen.com
On the Vine
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Black Tower, with its signature black bottle, is a wine which remains for many people synonymous with the 1970s. Along with flared jeans and platform boots and cheesecloth dresses, this wine
Febvre Portfolio Tasting THE recent Febvre & Co portfolio tasting was a who's who of the Irish wine trade. Over 500 guests came from all over the country to taste Febvre's range of wines and the tasting had something for everyone. A good fun commercial wine from California initially caught my eye: the 2004 Zig Zag Zin (RSP €14.50) is made by Paul Dolan who once worked for Fetzer: the wine is made from the Zinfandel grape and is a well made commercial wine which has good fruit. All the wines produced by the Mendocino Wine Company are organic and all are quite European in style. Also in the range was 2005 Big Yellow Cab (€14): a blend of Cabernet Sauvignon, Zinfandel, and Sangiovese, this was also a juicy, fruity very drinkable wine. It was also great to see that Domaine des Anges are now distributed by Febvre & Co. This Irish owned winery was started 25 years ago by Gay McGuinness from Kilkenny. The wines are based in the South of France and are made from a range of grape varieties, including Grenache, Syrah (red) and Marsanne & Rousanne (white). The wine-maker at Domaine des Anges is also an Irishman, Ciaran Rooney. Ciaran was born in Ireland but grew up in South Africa, where he trained as a winemaker. He has been working in France for Gay McGuinness for the last 10 years. The range includes the 2005 Cotes du Ventoux, Rouge, Domaines des Anges; 2006 Cotes du Ventous Blanc, Domaines des Anges; the 2006 Rosé, as well as the 2004 Cotes du Ventoux Rouge l'Archange.
The Vine
Germany, which is a cool climate evokes memories of a miscountry, meaning that the wines are spent youth for many Irish fresh and clean and have a relatively people. Before wine became low alcohol by volume. They retail an everyday commodity for nationwide at €8.99 for the Riesling the Irish consumer, sales of and Rosé and €9.99 for the Pinot Black Tower soared in Grigio. Ireland and the wine was Bend in the River, imported by perceived as a reliable purFindlater/Grants is another example chase, especially for the of clever marketing when it comes to novice drinker. German wines. The range has a disThirty years have passed tinctive modern bottle shape and and Ireland has changed comes in a range of grape varieties, beyond all recognition: so too including Riesling, Pinot Grigio, has the Black Tower brand. Rosé and a Merlot, retailing Gone are the dark bottles of between €9.99 and €10.99. yesteryear to be replaced Findlater/Grants also import by a modern well-made the Weightwatchers range of commercial wine. The wines, also from Germany, which distinctive bottle shape are produced by Kenderman’s, remains but today Black the same group who produce Tower remains Bend in the River. These wines Germany's number are low calorie and low alcohol one exported branded (8% ABV/ 80 calories per glass) wine, selling in more and recently featured on RTE's than 50 countries Afternoon Show. The range worldwide. Gilbey's includes a fruity white, a Wines distribute Riesling, a Rosé and retails at Black Tower in €8.99. Available nationwide, Ireland. this is a very good selling The new range of point for low alcohol wines wines in the Black and these wines are now Tower range include enjoying great visibility and a set of single variBend in the River, imported by success on the Irish market. etal wines, which are Findlater/Grants, has a For more information about typical of the grape distinctive modern German wine in Ireland convarieties, which the bottle shape and comes tact: Holger Erdmann, consumer knows and in a range of grape Wines of Germany, 46 loves so well. varieties. Fitzwilliam Square, Dublin 2. Riesling, Pinot Grigio Tel: (01) 642 4335. Email: holger.erdand a Rosé wine are all part of 21st mann@winesofgermany.ie. Web: century Black Tower, the only differwww.winesofgermany.ie ence is that the grapes are grown in
Cono Sur Goes Green CHILEAN winery, Cono Sur has become the world's first wine producer to achieve Carbon Neutral delivery status. Having completed the rigorous process involved in achieving this status, all Cono Sur wines will now carry the Carbon Neutral logo on their products. Philip Robinson, Marketing Director at FindlaterGrants, who distribute Cono Sur in Ireland, told RETAIL NEWS that because consumers are becoming more environmentally aware, the public will actively seek out more products which are environmentally ethical. The Carbon Neutral status means that CO 2 emissions from the shipping of Cono Sur wines have been measured and balanced to a net zero through a greenhouse gas reduction programme and the support of renewable energy projects, which in this case involves funding a wind energy project in Turkey.
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Drinks News.
15/04/2008
16:59
April08Drinks
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News
Appointment at Irish Distillers IRISH Distillers Pernod Ricard has announced the appointment of Emma Donnellan as Brands Director, Ireland. In this role, Emma will direct the marketing activity for the company’s brand portfolio in Ireland, with the exception of Jameson. The Irish Distillers Pernod Ricard portfolio is the market leader in the spirits and wine sector in Ireland. Emma joined Irish Distillers in January 2006 as Head of Consumer Insight and Planning. Prior to joining Irish Distillers Pernod
Cooley Distillery Win Gold COOLEY Distillery, Ireland’s only independent whiskey distiller, claimed no fewer than six prestigious Double Gold Medals at the 2008 San Francisco World Spirits Competition. This was the first time that an Irish whiskey distiller managed such an accolade and the success did not end there for the Co. Louth outfit, as they also claimed a Gold Medal for their Kilbeggan 15 Year Old Whiskey. Cooley’s Medal tally of 15 eclipsed all other Irish whiskey distillers at this prestigious competition, which rates the top spirits from around the world. A Double Gold Medal is the highest honour a spirit can receive. Cooley’s Double Gold winners in this year’s competition included: Connemara Peated Single Malt, Connemara Cask Strength Single Malt, Connemara 12 Year Peated Single Malt, Greenore 8 Year Old Single Grain, Tyrconnell 10 Year Old Madeira Finish, Tyrconnell 10 Year Old Sherry Finish.
Ricard, Emma worked in a number of senior consumer marketing roles within the drinks industry, including Global Planning Director for Baileys.
Tiger Beer Announces Sponsorship of Rickshaws TIGER Beer, Ireland’s number one selling Asian beer, has announced plans to sponsor a fleet of rickshaws operating in the Dublin city centre area. The rickshaws, which transport customers around the city centre between 10pm and 4am from Thursday to Sunday evening, have been in operation for the past six years and have proved increasingly popular with late night revellers. Tiger Beer is the first brand to recognise the sponsorship potential of the rickshaws and this initial sponsorship covers a fleet of five rickshaws for a six-month period.
Pernod Ricard Acquires Vin & Sprit PERNOD Ricard has announced the signing of a contract with the Kingdom of Sweden for the acquisition of 100% of the shares of the Vin & Sprit Group (“V&S”), the owner of Absolut vodka. The acquisition does not include V&S’ 10% interest in Beam Global Spirits & Wine, Inc. This acquisition represents an outstanding opportunity for Pernod Ricard and will result in the Group becoming co-leader in the global wine & spirits industry. Absolut is the number one premium vodka brand worldwide, with around 11m nine-litre cases sold in 2007 and is an iconic brand whose influence goes far beyond the wine & spirits universe. It is one of only four international spirits brands in the world which sells more than 10m cases a year and has a specially attractive growth profile (+9% volume growth in 2007).
Fetzer Vineyards Launch Exciting New Styles IAN Carroll, Brand Development Manager with Edward Dillon and Company Limited, is pictured with Charlie Gilmore, White Wine Maker for Fetzer Vineyards, celebrating the addition of a number of new and exciting styles to their Californian wine portfolio. Charlie introduced four new additions to Fetzer's Valley Oaks range, Fetzer Valley Oaks Pinot Grigio, Sauvignon Blanc, Zinfandel and Shiraz, as well as four new additions to the organic Bonterra range, a Chardonnay-Sauvignon Blanc blend, Viognier, Merlot and a Shiraz-Carignane blend. Charlie finally introduced SonomaCutrer Russian River Ranches to the Edward Dillon & Company Limited portfolio.
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Bella
15/04/2008
17:44
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Bella - The Italian for Ice Cream Available from April 2008. Irish Cone & Wafer are delighted to announce the launch of their new Bella Ice Cream Mix onto the market. Bella is a luxurious smooth dairy ice cream mix inspired by a master gelateria recipe. It is blended with only the finest milk and cream and infused with delicious vanilla flavouring. Bella complements Irish Cone & Wafers’ existing portfolio of cone and wafer products, including the ever-popular Superb Cones offering.
Irish Cone & Wafer Mfg Co. Ltd. Kilbrew, Ashbourne, Co. Meath Tel: (01) 8350611 Fax: (01) 8351832
Organic foods
15/04/2008
17:00
April08Organic
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Food
Green Giants The market for organic food continues to grow around the world, and Ireland is no exception.
The
continued rise of organic food as a strong category in-store is likely to continue, as Irish consumers shop on both health and ethical grounds. Organic food is produce that has been independently certified to have been grown free of chemicals. The Irish organic retail market was estimated to be worth some €66m last year, compared to €38m in 2003. Indeed, the Government are actively promoting the growth of organic produce: the recently launched Organic Farming Scheme aims at encouraging producers to respond to the market demand for organic food. "The Programme for Government has set a target of increasing the amount of agricultural land area under organic production from its current rate of less than 1% to 5% by 2012,” noted Trevor Sargent TD, Minister for Food and Horticulture. ”Even though this is a challenging target, it is I believe attainable and my Department has substantial incentives to operators to convert to organic. When the rising consumer demand for organics is taken into account, it makes sense to go organic". Last year’s SHOP exhibition included Ireland’s first National Organic Awards, which proved a big hit at the show, with St Tola Organic 30
Goat’s Log from Inagh Farmhouse Cheese, Co. Clare, taking the top award of Best Overall Organic Product for 2007. Other winners included Best Organic Sweet, Flour and Chocolate Confectionery – Katie’s Organic Oat Jumblies (biscuits) from Cisti Gugan Barra, Co Cork; Best Organic Grocery Product – Earl Grey Tea from Solaris Herbs, Co Galway. Aidan Cotter, Chief Executive, Bord Bia commented “We are delighted with the high level and standard of entries to Bord Bia’s inaugural National Organic Awards 2007. These awards will further enhance trade and consumer awareness of Irish organic capabilities and create a platform for organic producers to demonstrate the broad range and high quality of products available. Organic food is one of
Organic food sales are estimated to be worth in excess of US$20 billion in Europe and US$17 billion in the US alone. In 2007, 15.1% of new food product launches tracked by Productscan were tagged as organic, compared to 7.3% in 2002.
Green & Blacks Green & Black’s Organic is the fastest growing chocolate brand in the Irish market. Driving growth in premium and the dark chocolate market, the brand is currently worth €1.9m. Built on the principles of unique intense taste, sourcing ingredients that are premium, organic and fair-trade, Green & Black’s chocolate has more than doubled in size in 2007. According to brand owners, Cadbury, the large percentage of cocoa in every bar creates a flavour intensity that is rarely
Green & Black’s Organic is the fastest growing chocolate brand in the Irish market.
the fastest growing segments of the European food market and has a growth rate of 15 - 20% in Ireland. Bord Bia will continue to work with and support the organic sector with significant optimism towards its further development in Ireland.” In response to market research and in consultation with the Organic Market Development Group (OMDG), Bord Bia has drawn up a three-year Organic Marketing Plan for the development of the organic food market in Ireland.
matched by other chocolate brands. During 2008, Green & Black’s will engage in a marketing campaign that will include press advertising, PR, radio, cookery demonstrations, in-store and events sampling. In store awareness and consumer trial begins in April, with the Green & Black’s Cookbook promotion. With every purchase of 3 x 100g bars, consumers get a free Green & Black’s cookbook, worth over €20. To highlight this great offer in-store, a specially designed floor unit is available to the retailer and can be
TAKE THE PHONE OFF THE HOOK
Give our bittersweet dark chocolate your full attention. It’s an intense taste experience your palate will never forget. That’s why we believe it’s best enjoyed free from interruptions.
www.greenandblacks.com 20569 G&B Phone A4.indd 1
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Organic foods
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Food
With every purchase of 3 x 100g bars, consumers get a free Green & Black’s cookbook, worth over €20: a specially designed floor unit is available to highlight this offer in-store.
acquired by contacting your local Cadbury Sales Executive.
Jumbo Oats – a larger thicker oat flake, ideally suited for making porridge with extra bite. These new products have a strong appeal to consumers who care about their diet and appreciate the positive nutritional value of porridge. The distinctive Flahavan’s texture and taste, together with the intrinsic health benefits of organic porridge, combine to make Flahavan’s Organic and Jumbo Porridge Oats the brand that consumers can trust. Milled in an environmentallyfriendly manner, Flahavan’s burn the outer shell of the oat to power the boiler, which generates steam for the cooking process. Electricity is also generated from the original millstream alongside their mill on the river Mahon. Flahavan’s long heritage of oat milling is reflected in the packaging of the range, which has a distinctive retro feel, derived from an original Flahavan’s design from the 1940s and made using recycled paper. Flahavan’s Organic Oatflakes are certified by the Organic Trust Limited.
Capilano
Capilano is 100% pure Australian honey, and contains no added preservatives, colours or flavours, and has 0% fat.
enjoying annual growth of 70%. BR Marketing will be supporting Capilano Honey with extra fills, coupons, advertising in key titles and range of POS solutions to ensure retailers capitalise on the growing demand for the brand.
Founded in Australia in 1953 by brothers Tim and Bert Smith, Capilano is now one of the largest honey producers Organic Fanatic in the world and is the second biggest Flahavan’s Organic Fanatic is an organic juice honey brand in the Irish market drink mixed with Irish spring water. Flahavan’s, recognised as producers of (Source: ACNielsen). Each bottle of organic juice used can top best quality oat cereals, have a Capilano is 100% pure Australian be traced back to the region is came range of award-winning Organic Oats honey, and contains no added preservafrom. Vitz Drinks Ltd preselect all available in 1kg bags. Made from 100% tives, colours or flavours, and has 0% their juices before the growing seaOrganic Oats, the range includes fat. The range includes Premium, Organic Porridge Oats and Organic Organic, Medihoney and newly introduced Coastal and Outback Honey. Capilano's Premium Organic Honey is a pure blend of eucalyptus and ground flora honeys, rich in character and flavour. These honeys consist of light and dark, strong and mild honeys, which are blended together to give Organic Fanatic is an organic juice drink an organic honey Made from 100% Organic Oats, the Flahavan’s mixed with Irish spring water in three organic range includes Organic Porridge Oats and that is consistent. delicious flavours: Orange & Mango, Organic Jumbo Oats. Capilano Honey is Raspberry & Apple, and Lemon & Lime. 32
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son, so they can guarantee that the quality and taste of Organic Fanatic is completely natural, from tree to bottle. All Organic Fanatic juices contain no preservatives, no sweeteners, no artificial flavours or colours. Organic Fanatic is available in three delicious flavours: Orange & Mango, Raspberry & Apple, and Lemon & Lime, each of which contains just 100 calories and is a natural juice blend. For more information, contact Vitz Drinks Ltd, The Wooden House, Mill Lane, Shankill, Co. Dublin. Tel: (01) 2722447.
Bonterra There are four new additions to the organic Bonterra wine range. These new styles include a Chardonnay-Sauvignon Blanc
blend (€13.99), Viognier (€17.99), Merlot (€17.99) and a Shiraz-Carignane blend (€13.99). The new styles bring the number of environmentallyconscious Bonterra varietals available to the Irish consumer to seven. The existing range includes Chardonnay (€16.99), Cabernet One of the new additions to the organic Bonterra wine range: the Shiraz-Carignane blend (€13.99).
Food
Sauvignon (€17.99) and a Zinfandel (€17.99). Distributed and marketed by Edward Dillon and Company Limited, Bonterra Vineyards lie in the rugged hills overlooking the Russian River in California’s Mendocino County. The Northern Californian winery has been at the forefront of Organic Viticulture for more than two decades and is one of the largest organic grape producers in the world. In fact, Bonterra was the first major wine brand to be given accreditation by the Soil Association. Bonterra is an environmentally-conscious grower of grapes but also goes much further than that, spreading its environmental philosophy across the whole production and marketing of wines.
Organic Food – Fact or Fiction? THE Food Safety Authority of Ireland’s (FSAI) Consultative Council recently hosted an open meeting to discuss current attitudes and findings in relation to organic food. Over 100 people attended the ‘Organic Food - Fact or Fiction?’ event in Dublin, where the Food Safety Consultative Council released details of research which highlighted consumer understanding of the perceived benefits of organic food. Speakers at the event included: Clodagh McKenna, chef, media presenter and food consultant; Siobhán Morris, organic food consultant; Dr Con O’Rourke, Plant Scientist; and Dr Mary Flynn, Chief Specialist, Public Health Nutrition, FSAI. Delegates at the meeting heard that research shows that while 80% of people surveyed understood the benefits of organic food to be free from pesticides and chemicals, some 32% felt organic produce is a healthier option and only 15% believed that organic food is ‘full of flavour and taste’. The survey also showed that more than half of Irish consumers have ‘never’ purchased organic food. The number one reason cited for this was cost, with 54% believing organic food was too expensive. “Today’s topic on the organic food debate and its tangible benefits is a highly topical issue, given that the world organic market has been growing by 20% a year since the early 1990s,” noted Veronica Campbell, Chairperson of the Consultative Council. “Ireland is no exception and future projections for further annual growth range between 10-50%. So, in this context, it is timely to debate the potential health, nutritional and safety values of these products which are becoming more widely available.” Siobhán Morris, Organic Food Consultant, cited a recent £12million EU study carried out by Newcastle University which found a general trend showing organic food containing more antioxidants than conventional food. She also outlined mounting evidence supporting the benefits of organic milk which has been found to be naturally higher in Omega 3 fatty acids, Vitamin E, Vitamin A (beta carotene) and other antioxidants.
Pictured are (l-r): Clodagh McKenna, chef, media presenter and food consultant; Veronica Campbell, Chairperson of the FSAI Consultative Council; Con O'Rourke, Plant Scientist, Dr Mary Flynn, Chief Specialist, Public Health Nutrition, FSAI; and Siobhan Morris, Organic Food Consultant.
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Naturally good.
Smoothies are the fastest growing category in the juice market. In fact, the category grew by 70% in 2007 alone. Since its launch in 2006, the Sqeez Smoothie range has gained 21% of the total market share.* That’s because it has all the goodness of a pure fruit smoothie but it’s wickedly good value too. Plus as a product, it really does tick all the boxes. 100% pure fruit - no dairy, no preservatives, colour or added sugar 8-month shelf life, no need for refrigeration Excellent value, higher turnover Available in 1 litre carton or grab-and-go 200ml pack Available in 4 sumptuous flavours BATC023_trade_press.indd 1
* Source: (AC Nielsen Dec 07 MAT)
Wickedly good value.
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Smooth Operators The smoothie revolution continues, with more and more Irish consumers reaching for these healthy, tasty drinks.
Smoothies
are big business in Ireland, and growing all the time. Described as the fast food for the new millennium, smoothies (or blended fruit drinks) are experiencing massive growth in Ireland as consumers in their droves reach for these tasty, convenient and healthy products. Nutrition, low-fat and freshness are all product benefits that consumers love and attributes which smoothie manufacturers maintain give them the edge on traditional soft drinks. Indeed, the smoothie market in Ireland continues to enjoy strong double digit growth as Irish consumers become increasingly aware and attentive of the ingredients in the products they consume. As a result, functional drinks like smoothies have mushroomed in popularity. Smoothies are often bought as a treat but for some people smoothie consumption has become part of their everyday life. For some people, smoothies are breakfast. For others, they’re an excellent alternative to coffee and cake as a three o’clock pickme-up. They even make an excellent dessert.
Sqeez Sqeez are embracing the smoothie category as it continues to show massive 36
Offering all the convenience of ambient products, Sqeez Smoothies can be stocked on the juice aisle or in the chilled cabinet.
growth. Offering convenience to both retailers and consumers alike, Sqeez Smoothies can be stocked on the juice aisle, at a great price considering the amount of fruit packed into each carton. Naturally sealed for freshness, Sqeez smoothies contain no preservatives, no added sugar or colours, and no dairy. Whatever the occasion, they are an excellent source of nutrition, vitamins, and minerals. Nutritionists recommend that we consume at least five portions of fruit and vegetables a day. Smoothies are an excellent way of meeting this requirement – a 200ml glass of Sqeez Smoothie contains two portions of consumers’ five-a-day. Offering all the convenience of ambient products, Sqeez Smoothies can be stocked on the juice aisle or in the chilled cabinet. The four sumptuous flavours in the range are available in 1ltr & also the 2 favourites come in 200ml formats perfectly suited for the lunchbox occasion. According to recent Nielsen data, ambient smoothies are growing at a much faster rate than chilled smoothies. (AC Nielsen Dec 07 MAT). With a targeted consumer media spend throughout 2008, Sqeez expect to expand the ambient smoothie market even further.
Tropicana Tropicana, Ireland’s number one juice brand (Source: ACNielsen latest 52 weeks to 30.12.2007), is set to fuel category growth with the launch of its new range of premium smoothies. Tropicana Smoothies are a range of pure fruit smoothies, bursting with natural flavour that will capitalise and drive growth in the smoothie sector - currently the second biggest segment in chilled fruit juice category, worth €15.5m and growing at 75% year-on-year (Source: ACNielsen latest 52 weeks to 30.12.2007). The launch will build on Tropicana’s reputation for premium juices, introducing loyal Tropicana consumers to smoothies, whilst also attracting new smoothie drinkers to the sector. This launch will make smoothies more mainstream, replicating the success Tropicana had in widening the appeal of not-from-concentrate juices. Tropicana is the sixth best selling beverages brand in Ireland and this move will further broaden its portfolio, spearheading both category growth and retailer profit opportunity. These premium smoothies are available in five exciting flavours: Strawberry & Banana; Mango, Passionfruit & Pineapple; Blackberry &
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New Tropicana Smoothies are a range of pure fruit smoothies, bursting with natural flavour that will capitalise and drive growth in the smoothie sector.
Blueberry; Raspberry & Pomegranate; and Apple, Pear & Cranberry. Each 250ml Tropicana Smoothie provides two of the recommended fivea-day portions of fruit and vegetables. This makes it an easy way for retailers to promote the health benefits associated with smoothies. In addition to creating a great proposition and winning product range, Tropicana Smoothies will benefit from a significant market investment. This will include TV advertising, outdoor advertising, consumer press, sampling, direct mail and PR support. SHS Sales & Marketing launched Tropicana into the Irish market in partnership with PepsiCo in 1995, and have continued to work closely with PepsiCo to ensure its continued success. Following on from the success of the Tropicana and Copella portfolio, SHS Sales & Marketing will be responsible for the sales, marketing and distribu-
tion of the new Tropicana Smoothies range. David O’Neill, Managing Director, SHS Sales & Marketing, says, “SHS Sales & Marketing are looking forward to the much anticipated launch of Tropicana Smoothies into the Irish market. The launch of Tropicana Smoothies will not only further strengthen the Tropicana brand, but also ensure we continue With a strong shelf presence, Smootheze is available in to add further value to the smoothie sector of the four mouth-watering flavours: Very Berry Fruity; Mucho Mango; Tropical Tango; and Superfruit Superstar. category. With the incremental value which smoothies continue to add to the category, retailers need to Innocent review their cold beverages range to Made from 100% pure fruit, Innocent ensure they are stocking product and Smoothies not only taste good but also brand lines in conjunction with their include two portions of your daily recshoppers’ trends and demands.” ommended fruit intake squeezed into Tropicana Smoothies are available each one. in both 1 litre and 250ml bottles and They are available in 1-litre carare packed six to a case. tons, in exactly the same recipes as the popular smaller bottles, and Innocent are about to launch their Smootheze two top-selling Smoothie brands, Yoplait are introducing an exciting new Strawberries & Bananas and advertising campaign for Smootheze, Mangoes & Passionfruits in even bigthe delicious chilled fruit smoothie ger 1.5 litre cartons in Tesco, drink that offers the goodness of a cusSuperquinn and Dunnes from May. tom-made smoothie, without the wait and mess. These tasty Smootheze offer consumers a great fruit burst at any time during the day. With a strong shelf presence, Smootheze is available in four mouth-watering flavours: Very Berry Fruity; Mucho Mango; Tropical Tango; and Superfruit Superstar. In a convenient format, the delicious blend of juicy fruits and low fat probiotic yogurt provides 50% of the RDA of vitamin C, while the unique smoothie cup, dome lid and attached straw completes the contemporary graband-go format. A heavyweight advertising campaign, which includes TV and outdoor, plus a fruity burst From May, Innocent are launching their two topselling Smoothie brands, Strawberries & of BTL support, is planned for Bananas and Mangoes & Passionfruits, in even spring. bigger 1.5 litre cartons. 37
Juice
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Setting the Juice Loose Juice continues to gain in popularity as a healthy alternative to carbonated soft drinks.
Health
and wellbeing continue to affect consumer choice in the Irish soft drinks market, with juice in particular benefiting from increased consumer interest in the more natural options on the market. Alongside smoothies, juice is experiencing strong growth as consumers seek out functional beverages, such as fortified juices, making this a very dynamic category.
retains a strong position in both the Ready-to-Drink (RTD) and Concentrates sectors. The Ribena RTD range includes a choice of formats. The Ribena RTD Ribena 288ml Tetra cartons come in a range of With a wide range of products to suit juicy flavours, including Blackcurrant, consumers of all lifestyles and tastes, ToothKind Blackcurrant, Strawberry, Ribena, from GlaxoSmithKline, Apple and Orange. The Ribena 330ml Sportscap range follows on, complete with a contemporary design and resealable packaging. In addition, an up-to-the-minute valve cap means no spills or mess. The high-performing Ribena 500ml range continues to afford all the refreshment of a greattasting still drink, coupled with a more generous serving size. This delicious range has something to satisfy all taste buds, with flavours such Ribena retains a strong position in both the Ready-toas Blackcurrant, Drink (RTD) and Concentrates sectors.
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Cranberry & Blackcurrant, and Really Light Blackcurrant. Reflecting its strong heritage in the concentrates segment, this range remains ever-popular with Irish consumers. Supported by a ‘Kind to Teeth’ promise, Ribena No Added Sugar Toothkind remains a particularly popular choice. Furthermore, Ribena Really Light No Added Sugar perfectly meets contemporary consumer demands for lower calorie products. Available in Blackcurrant and new Raspberry & Pomegranate flavours, it offers consumers the choice to experience the lighter side of Ribena. Ensuring a strong impact on shelf, Ribena packaging effectively conveys the brand’s real fruit ingredients and premium positioning. An ongoing, dedicated programme of through-the-line marketing support will further drive the brand’s key message, “95% of Irish blackcurrants go into Ribena”, reinforcing the brand’s home-grown basis and quality proposition. Other high profile initiatives such as the great ‘Win a Spin’ promotion will ensure a strong demand for the Ribena brand throughout 2008.
Capri-Sun The number one single serve ready to drink juice drink in Ireland, CapriSun, from Premier Foods Ireland, continues to enjoy strong growth in the competitive juice market with over 15% market share (Source: ACNielsen, February 2008). It is made with natural juices and contains no artificial flavours, colours or preservatives. Capri-Sun has launched a new flavour in their 330ml pouch drinks. The Apple & Blackcurrant drink is the third variety in the popular resealable range, which is already avail-
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overall wellbeing, including Vitamin E, B2, B12 pantothenic acid, Niacin, Biotin and Vitamin C. VitHit Detox is for cleansing and energising the body. It includes mango and mandarin juice, blended with Irish spring water and vitamins and contains less than 20 calories. Boost Detox contains 100% of the RDA of vitamins B5 and B6, as well as Vitamins B2 and B1, which help support a healthy metabolism. It also contains dandelion and burdock, which help rid the liver and other organs of toxins. VitHit Rescue is ideal for nursing a hangover or for stress relief. It contains red apple juice blended with Irish spring water, and is contains 100% of the RDA of five vital B vitamins to help convert energy from Capri-Sun continues to enjoy strong food and rid the body of excess alcogrowth in the competitive juice market hol. It also contains chamomile, with its natural, convenient juice products, which contain no artificial which is traditionally used for stress flavours, colours or preservatives. relief. Kelkin’s 330ml VitHit Revive is speOrange Juice (NFC) cially formulated for able in Orange and Tropical flavours. counts as one full prolonged energy The larger 330ml pouch is seen as fruit portion which throughout the day. It original, practical and cool – concontributes to the sumers simply squeeze and recommended daily contains 7% citrus fruit and vegetable juice, blended reseal the pouch, making it perintake. with Irish fect for older kids and teens who spring water Kelkin’s new 330ml are out and about. All pouches and has less Multivitamin Fruit Drink are in-store now, with promothan 20 calories. contains the goodness of 10 tions running in 75 Irish retailThis delicious different fruits, combined ers over March and April 2008. juice is designed with 10 important vitaThe Capri-Sun range also for sustained mins. Just a 200ml servincludes 200ml pouches, energy release ing per day provides the available in five and 10all through the recommended daily packs, with five different day and is ideal amount of vitamins B1, flavours to choose from as a daily pickB2, B6, B12, C, E and Orange, Summer Berries, me-up, containFolic Acid, Biotin, Niacin Tropical, Apple and ing no added and Pantothenate. Blackcurrant. The 100% sugar and 100% Juice range is available in RDA of five diforange and apple flavours. Vitz Drinks ferent vitamins Vitz Drinks have a range of which help confour functional juice prodKelkin vert food into ucts available on the Irish Kelkin is now making it easienergy. market, which are making er for consumers to get their For more waves with consumers. daily source of fruit, vegetainformation, VitHit Boost is a sumbles and vitamins on the go, contact Vitz mer berry fruit juice, with its handy 330ml bottles Drinks Ltd, blended with Irish spring of Kelkin Orange Juice NFC VitHit Detox contains The water, with no added (Not From Concentrate) and mango and mandarin Kelkin’s new 330ml Wooden House, juice, blended with the hugely popular Kelkin Multivitamin Fruit sugar and just 14 calories Irish spring water Drink contains the per bottle. It contains Mill Lane, Multivitamin Drink. Both and vitamins and goodness of 10 Shankill, Co. Ginseng, ideal for instant products are already available contains less than 20 different fruits, Dublin. Tel: (01) energy, and 100% of the in 1 litre formats and the calories. combined with 10 2722447. RDA of seven vitamins for Multivitamin also comes in a important vitamins. 750ml bottle and 3x200ml variety pack, ideal for lunchboxes. In true Kelkin style, there is no added sugar, artificial colours, flavours or preservatives in either product. Kelkin’s 330ml Orange Juice (NFC) is 100% pure, and contains more naturally occurring Vitamin C than juice made from concentrate. Each 150ml glass of Kelkin Orange Juice (NFC) counts as one full fruit portion which contributes to the recommended daily fruit and vegetable intake.
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Deli
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Deli Vision The growth in deli remains strong, with everything from breakfast rolls and sandwiches to evening meals now catered for at the more progressive deli counters.
The
deli market has grown steadily over the last five years, taking over some of the traditional market of fast food outlets. Public concern with regard to healthy eating has helped deli foods businesses to grow and diversify in a manner undreamt of in the 1990s. The chilled & deli food market consists of chilled fish/seafood, chilled meat products, chilled ready meals, chilled pizza, chilled fresh pasta, deli food and sandwiches/salads. The growth in deli, and eating out in general, was highlighted in the second ARAMARK/Campbell Catering Food Futures Study which surveyed over 1,000 consumers aged between 15 and 74, which found that more and more Irish consumers are eating out regularly, with the deli high on the consumer agenda. The trend towards eating out is fuelled by greater economic affluence and by people now spending more time at work and in the ‘third space’ ie socialising in different venues, than at home.
“Ireland’s rise in economic strength, while providing greater affluence is also having a detrimental impact on our eating habits with 1 in 4 adults regularly skipping breakfast and as many as 1 in 5 adults regularly skipping lunch,” noted Joan O’Shaughnessy, Managing Director of ARAMARK / Campbell Catering Ireland. “Commuting times, deadlines and other pressures are creating unhealthy and unsustainable food habits in the working community. Indeed more people (41%) said they were ‘too busy to eat healthily nowadays’ than in our first report in 2005 when 35% agreed with this statement.” The growing emphasis on healthy eating, together with increased food consumption outside the home also means that more people expect healthy options, with 55% claiming to seek a healthier option when eating out. However more than one in two Irish consumers (53%) feel they have a very healthy diet - a marginal decline (6%) on 2005.
Some interesting regional and demographic trends were highlighted in the ARAMARK Food Futures Study.
Report Findings
Breakfast:
The second ARAMARK / Campbell Catering Ireland in-depth study of food consumption trends among Irish consumers, produced by Amárach Consulting, reveals that: - 44% of respondents said they were eating outside the home more often than they used to (40% in 2005) - 61% or almost two thirds of those who eat outside the home do so at lunchtime (52% in 2005). —- -
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Sandwiches are the most popular choice, with two in five Irish adults claiming to eat a sandwich at lunch.
Breakfast rolls (52%) are most likely to be bought by males (64%), ages 35-44 (69%), social class C2DE (61%) and those from Munster (79%). Breakfast rolls are most likely to be purchased in rural areas (72%) with only 36% of people from Dublin indicating that they purchase them. They are also popular amongst the 15-24 age group (52%); and the 25-34 age group (59%). 41
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Scones (11%) are most popular with women (14%), ABC1s (16%) and people from Dublin (14%).
Lunch -
Sandwiches (43%) are most likely to be bought by males (45%), and by age groups 25-34 (50%) and 3544 (49%). There is no significant difference between social classes or location, with the exception of just 36% in Connacht / Ulster indicating this choice, compared to at least 42% of the other provinces.
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Hot meals (34%) are again more likely to be purchased by males (37%) than females (31%). They are more popular with the older age groups, with 52% of 55-64 year olds and 47% of 65-74 year olds indicating this meal item. They are most popular in Rest of Leinster (50%). Again there is no significant difference between social classes.
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Soup (26%) is most popular with females (30%), 45-54 year olds (41%), ABC1s (31%). It is least popular in Munster, with just 15% indicating this meal item compared to 27%- 31% in the remaining three locations.
Health & Safety Of course, health and safety issues are of paramount importance in the deli. The Food Safety Authority of Ireland (FSAI) is responsible for policing health and safety regulations throughout the country and served up a total of 57 Enforcement Orders for breaches in food safety legislation in 2007, compared with 37 in 2006 – up 54%. The FSAI has repeatedly warned food business operators to put in place and adhere to robust food safety measures and to make this the key business priority for 2008. The FSAI is urging all food business operators to prioritise their food safety and hygiene practices in 2008 and to ensure that all staff involved in food production or preparation are adequately trained and/or supervised in food hygiene practices. “Consumers have a right to expect the highest standards in food safety when they are purchasing food,” noted Dr John O’Brien, Chief Executive, 42
FSAI. “Food businesses must comply with not only their legal obligations but their business obligations to supply safe food to their customers. Those food businesses who continue to flout the law and fail or refuse to implement the food safety prerequisites will face the consequences. Consumer protection is the driving force of our organisation and the food inspectorate. Enforcement officers only resort to using their legal powers to close a premises when standards have
fallen so low that consumer health has been put at risk. They will continue to apply the full rigours of the law until all food businesses understand their legal responsibility to implement a food safety management system and produce food that is safe to consume.” “Food business operators should take full advantage of the information and support made available by the FSAI and the enforcement officers to ensure a suitable food safety management plan is developed and put in
BIM Seafood Circle BIM’s Seafood Circle initiative is proving extremely popular with both trade and consumers with membership numbers for 2008 jumping to 132. This initiative was developed by BIM to support retailers and restaurateurs offering top quality seafood and service. The programme sits under three categories: Supermarket Seafood Counter with 23 members; Seafood Specialist 34 members and Hospitality with 75. All multiple, symbol groups and independent supermarkets offering a range of seafood from a wet fish counter, as part of a much greater offering of other foodstuffs, are invited to apply for membership in the Supermarket Seafood Counter category. Currently, all 19 Superquinn stores have achieved membership for the second year running, along with Donnybrook Fair, Dublin, and Twomey’s Supervalu, Deansgrange Co. Dublin. Newcomers in this category include Condron’s Supervalu in Clane and Scally’s Supervalu in Clonakilty. The Seafood Specialist category is open to seafood retailers who derive in excess of 50% of their turnover from seafood sales and where the retail portion of their premises does not exceed 250 m2. This category has five new members in 2008 The retail element of the programme is assessed by experienced BIM personnel and independent assessors. Applicants received at least two visits during the assessment period and report their findings to an independent approvals committee. Membership is awarded on an annual basis and may be withdrawn at any stage if an establishment fails to continue to meet the criteria necessary. A key element of the programme is to help retailers to identify gaps in product quality and customer service and assist them to bridge those gaps. Typical examples include the development of a labelling system for independent retailers to ensure that all product displayed meets with legislative requirements, as well as staff development workshops on product knowledge, preparation and customer service. The workshops are held in the BIM Seafood Development Centre which is equipped with a specially designed filleting room and kitchen area. Participants gain hands-on experience in several aspects of fishmongering and also build their culinary skills and product knowledge repertoire by spending time preparing and cooking seafood. In order to build consumer awareness of the Seafood Circle brand, BIM embarked on a national promotional campaign last September, with the tagline “from tide to table” and strong imagery of a competent fish retailer. A designated website, www.seafoodcircle.ie, has also been developed with listings for members, recipes, and hints and tips on using seafood.
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place, in line with legal requirements,” Dr O’Brien concluded.
Kerryfresh Kerryfresh, one of Ireland’s leading suppliers of fresh foodservice ingredients and food-to-go concepts, have launched a new catalogue to showcase their extensive offer for delicatessens and sandwich bars. The Kerryfresh
Kerryfresh are consistently adding new options to offer to delicatessens and sandwich bars.
‘Food Companion 2008’ features full product details and images of their range of sandwich fillers, salads, cooked meats, cheese and spreads, breakfast items, prepared meals, hot snacks, soups and sauces. It also includes a chef ’s ‘Top 10 Tips’ for making the most of your deli. New products launched recently by Kerryfresh include two sandwich fillers designed for use in hot sandwiches (Mediterranean Meatballs and Philadelphia Steak & Cheese), plus a tantalising new Mediterranean Tuna (with sundried tomatoes, mixed peppers and basil), which is already proving to be a popular alternative to standard seafood fillings. Upcoming launches include a presliced version of the famous Denny 44
Guidelines for Retail Sale of Fresh Produce ALL display units should be cleaned on a daily basis and any spillages occurring throughout the day should be immediately removed and the unit sanitised. Chill facilities for display of certain commodities are recommended to limit bacterial growth. Temperatures of chill units (if applicable) should be monitored twice daily with calibrated equipment, to ensure storage at the correct chill temperature. Appropriate action should be taken if temperatures are out of specification. Produce should be handled carefully when being mounted on displays to avoid bruising and product damage. Produce should not be over-stacked in display units to avoid overheating (due to lack of air circulation), and produce bruising. Most produce, particularly soft produce, should be displayed in original containers to protect from damage. Packaged prepared vegetables should be handled with extreme care and not over-packed, which could risk puncturing package seal. These packages should be stored in dark conditions prior to sale to extend shelf-life. Extreme care should be taken to ensure that these packages are not subjected to temperature abuse (>5oC) during storage, which could lead to growth of food poisoning bacteria. Produce on display should be visually inspected on a regular basis throughout the day for damage, breakdown, physical contaminants and spillages. Any poor quality produce should be immediately removed from sale and returned to the waste produce area. The ability of foodborne pathogenic bacteria to grow on cut surfaces is of utmost concern. Any produce cut for display should be covered and discarded after a defined display period. Date code checks should be conducted morning and evening with removal of any out-of-date produce. Stock should be continually rotated i.e. older stock displayed towards the front. All produce should be stored in a chill area at night (if possible). Any produce remaining on shop display should be covered. All produce display cases should be cleaned after use. Fresh produce purchased by consumers should be packaged separately from all other foods and non-food items.(Source: Code of Practice for Food Safety in the Fresh Produce Supply Chain in Ireland, FSAI) crumbed bulk ham, which comes in a convenient peel-and-seal 1 kg pack for prolonged freshness and zero waste.
Brady Family Hams The Brady Family range of premium quality, hand crafted, traditional Irish hams are renowned for their rich taste, firm texture and succulent flavour and are ‘muststock’ lines for all discerning and progressive delis. Only the finest fresh Irish pork is used, sourced from Bord Biaapproved suppliers with full traceability to farmer.
Brady Family Traditional Irish Ham.
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With Brady Family’s extensive range of hand-crafted hams (including traditional cooked ham, baked ham, oak smoked ham, glazed hams and old style ham, all on or off the bone), retailers can maximise all deli ham sales opportunities, including takehome purchases, sandwich fillings or thick slices for hot meals to go. The range includes both joints for machineslicing and ‘on-the-bone’ joints for hand-carving, creating in-store theatre and a unique competitive point of difference. Ideal for the time-pressured shopper, Brady Family Ham is also available sliced in a 140g consumer pack. This premium quality carved ham range offers all the taste of Brady Family deli hams, but in a convenient pre-pack and is guaranteed to delight consumers. It is now readily available in a branded shelf ready merchandising box to further enhance its impact on-shelf. In response to changing consumer lifestyles, Brady Family offer a range of cooked ham joints for consumers to take-home. Removing the hassle of cooking ham at home, Brady Family consumer joints are ready to eat and can be served hot or cold - ideal for family or entertaining occasions, such as buffets or barbeques.
Kraft Foods Kenco FreshSeal is a range of wellloved brands and quality products that are irresistible to consumers, including favourite brands such as Kenco Sustainable Development,
Produce Prepared in Store for Deli Sale -
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With the JustOne napkin dispenser from Georgia Pacific, napkins are dispensed ready for use, one at a time, encouraging customers to take just one.
Carte Noire, Suchard, Lyons, Twinings and Bovril. With the operator in mind, loose ingredients are kept secure under a foil seal so that drinks are fresh every time. The operator simply pulls back the foil to remove the seal, then adds hot water, before putting on a sip-lid. For the consumer, the Kenco FreshSeal cup looks and feels like a coffee shop paper cup, but good looks aren’t the only thing it has to offer! Strong plastic fins around the whole cup and the attached branded wrap minimise heat transfer, making it even easier for consumers to enjoy hot drinks anywhere.
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Fresh produce should be prepared with utensils confined to use with fresh produce only. Containers, chopping boards, knives etc., should be cleaned and sterilised daily. Water used for produce preparation/cleaning should be clean and potable. If chlorinated wash water is to be used, chlorine levels should not exceed the recommended levels. Conditions of storage of prepared produce should be carefully defined and in line with best practice. Use-by dates should not be longer than 1 day from preparation. Date of preparation should be noted on holding containers. Produce should ideally be covered with food grade cling film to prevent physical contamination when not on display. Temperature control of prepared produce is of utmost importance, given that the prepared produce deteriorates far more rapidly as a result of the larger exposed surface area. Prepared produce should be stored between 1oC and 3oC. Regular checks should be made on the temperature of prepared produce using a calibrated, clean temperature probe.
JustOne
The JustOne napkin dispenser from Georgia Pacific is the ideal dispensing system for use in delis and cafes. With JustOne, napkins are dispensed ready for use, one at a time, encouraging customers to take just one – hence the name. This lowers costs and reduces wastage from over-consumption by up to 30%. The napkins themselves are high quality with an attractive embossed pattern and a thicker feel. There is also improved hygiene with the JustOne dispenser as there is a decreased risk from cross contamination Kenco FreshSeal makes it easy for consumers to due to the fact that customers only touch the napkin they use. enjoy hot drinks anywhere.
(Source: Code of Practice for Food Safety in the Fresh Produce Supply Chain in Ireland, FSAI) There are four types of dispensers available to suit all deli requirements and taking into account space restrictions in smaller premises - a table top unit, a counter top unit, a high capacity wall unit/ free standing, and an incounter unit. The wall unit and the counter-top unit come with an indicator so that staff can tell when the dispenser needs refilling – thus saving time. The unique loading system means they can be loaded single handedly. And for added convenience the dispenser is easy to clean. 45
Personal Care
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Care
The Care Essentials The multimillion euro personal care sector continues to grow, with value added products and innovative grooming solutions fuelling market development.
New Sensodyne Pronamel toothpaste has been launched to combat the increasing problem of acid erosion.
tant occasion to target over the next five years. Convenience continues to be a key trend for Irish consumers, according to Euromonitor. Easy application and usage, as well as timesaving and multifunctional characteristics, are the main requirements. Some of these products have a higher price positioning, but consumers appear willing to pay higher unit prices if products can offer genuine benefits in terms of saving time.
Oral Care
The
personal care/grooming sector encompasses everything from toothbrushes to shampoos, moisturisers to mouthwash. The good news for retailers is that this market continues to mushroom, with new products and new usage occasions fuelling growth. Indeed, the grooming-on-the-go sector is emerging as a massive market with serious potential, as the need to save time and the pressure to look good drive consumers to groom outside the home. In 2004, there were 227 billion onthe-go personal and oral care occasions in Europe and the US and by 2009, this market will be worth over seven billion dollars, according to information from Datamonitor. 60% of adults report that they groom on-thego, with 47% of all consumers reporting that they use personal care in the workplace, making this a very impor-
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The Oral Care market in Ireland is now worth over €49m and accounts for 15% of total Health & Beauty spend. It is the fastest growing segment within Health and Beauty, delivering 13% growth YOY (Source: ACNielsen Total Scantrack ROI (Mults, GRP, Forecourts) H&B ex baby MAT 09/09/07). Oral Care is made up of four distinct categories – Toothpaste, Toothbrushes, Mouthrinse and Other Dental Care. Toothpaste is the largest of these categories worth €24.1m and growing strongly with 10.3% value growth. (ACNielsen Scantrack Mults, MAT w/e 4th Nov 07). The Toothbrush category is worth €12.4M and is growing strongly at 12.7% in value terms (Source: ACNielsen Total Scantrack ROI (Mults, GRP, Forecourts) H&B ex baby MAT 09/09/07). 75% of brush value sales are in the
manual segment with battery & electric brushes accounting for 15% & 10% respectively (Source: ACNielsen Scantrack Mults, MAT w/e 4th Nov 07). Battery is the fastest growing segment with 25% value growth due to the success of hybrid brushes (Colgate 360 Microsonic and Oral B Pulsar).
Sensodyne As Ireland’s number one toothpaste for sensitive teeth and the number two overall toothpaste brand, Sensodyne, from GlaxoSmithKline, continues to perform exceptionally well in the oral care market. Indeed, Sensodyne showed significant growth in 2007, increasing its value sales by 23.6% compared to the previous year (Source: ACNielsen ROI, Scantrack, Multiples, MAT Feb 24/08). Reflecting the ongoing high levels of dental endorsement and recommendation experienced by Sensodyne, the brand is the only sensitive toothpaste to be approved by the Irish Dental Association. Continued product innovation has included the phenomenal success of new Sensodyne Pronamel toothpaste to combat the increasing problem of acid erosion. This revolutionary toothpaste has set new standards in the oral care sector and has taken an impressive 3.9% MAT value share in a relatively short period on the market (Source: ACNielsen ROI, Scantrack, Multiples, MAT Feb 24/08).
220 mm with bleed 210 mm
THINK HARD
297 mm
307 mm with bleed
BE GENTLE
Sensodyne ProNamel Toothbrush and Toothpaste, your partners in protection against acid erosion!
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Care
Ongoing product innovation and strong marketing support across the Sensodyne product range will continue to spell success for the brand during 2008.
Reach Reach toothbrushes, from Johnson & Johnson, remain a popular choice within the Oral Care category and are
brushing teeth alone, for longer lasting fresh breath.
Listerine Johnson & Johnson’s Listerine is by far the number one mouthwash in Ireland with a massive 66% market share and growing at 15% year on year (Source: ACNielsen Feb 24/08). Clinically proven to remove 56% more plaque than brushing alone, Listerine
gives 24-hour plaque protection when used twice daily and is the only mouthwash accredited by the Irish Dental Association. With massive advertising and promotion support behind the brand, Listerine is in a strong position not only to maintain market leadership but also to drive category growth for the mouthwash market. The latest addition to the range, Listerine Total Care has proven to be the most successful Listerine launch to date, achieving a massive 24% share in February (Source: ACNielsen Feb 24/08), which is an amazing result for just one variant.
Oral-B Oral-B, from Procter & Gamble, trusted producer of high quality dental hygiene products for more than 50 years, is launching Oral-B CrossAction Complete, the most innovative brush within Oral-B’s leading CrossAction franchise. Oral-B’s newest innovation is a multibenefit brush, which provides cleaner and healthier, teeth, gums and mouth, whilst removing up to 90% of plaque in Listerine Total Care has proven to be the most successful Listerine launch hard-to-reach places. to date. Reach Fresh Breath is one of the top Oral-B CrossAction selling toothbrushes in Ireland. Complete boasts seven individual oral experiencing massive value health benefits, growth of 21% year on year which help to (Source ACNielsen Dec 30/07). improve the Reach prides itself on consiswellbeing of the tently driving innovation and whole mouth. the range includes an offering Commenting on for every oral care need. the launch of Reach Fresh Breath is one Oral-B of the top selling toothbrushes CrossAction within the entire category Complete, (Source: ACNielsen Dec Steven Davey, 30/07). It has been specificalOral-B Brand ly designed with a tongue Manager says, cleaner integrated into the “Oral-B back of the head and is cliniListerine gives 24-hour plaque protection when used twice CrossAction cally proven to remove five daily and is the only mouthwash accredited by the Irish Complete is a times more bacteria than Dental Association. 48
Oral-B CrossAction Complete boasts seven individual oral health benefits, which help to improve the wellbeing of the whole mouth.
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major new addition to the manual market. The unique manual toothbrush offers seven end benefits to the consumer via one brush. We’re delighted by the superior results this multi-benefit brush has delivered in testing and are confident that it will be a great success with those who value their oral health.” Oral-B CrossAction Complete is the newest addition to the Oral-B CrossAction family, which currently includes Oral-B CrossAction and Oral-B CrossAction Massage. This pioneering range was developed as a result of extensive scientific and ergonomic research to uncover what makes a manual toothbrush clinically superior. Additionally Oral-B boasts the Oral-B Pulsar, a unique manual toothbrush with a pulse, within its manual portfolio, as well as Oral B Advantage, which removes plaque whilst gently massaging and stimulating gums. The pioneering launch of Oral-B Stages revolutionised the way we look at children’s brushing as it’s a range designed to meet their special needs at different stages of their development. It features licensed characters, including Winnie the Pooh, Pirates of the Caribbean and Ratatouille. The Oral-B Stages range includes: Stages 1, for children aged 4 months to 24 months; Stages 2, for children aged 2 to 4 years; Stages 3, for children aged 5 to 7 years; Stages 4, for children aged 8 years plus; and Stages Toothpaste. Oral-B’s rechargeable product range includes the Oral-B Vitality range: Oral-B Vitality Precision Clean, Sensitive Clean, ProWhite & DualClean, providing unique end benefits to consumers with an entry-level price point. Meanwhile, the range also includes the Oral-B ProfessionalCare and Oral-B Triumph ranges.
Colgate Within the toothpaste market, whitening is the largest sector, accounting for 24% of spend, growing at 10%. The second largest sector is now Sensitive, having taken this position from Cavity Protection (+7%), and showing phenomenal growth of over 25%. Other sectors such as Refreshing and
Care
New premium product offerings, like Colgate’s Total Professional Weekly Clean, account for a large proportion of NPD growth.
Children’s are also delivering strong growth +29% and +4% respectively (Source: ACNielsen Scantrack Mults, MAT w/e 4th Nov 07). Shoppers are increasing their repertoire of toothpastes, buying one type for the whole family and another to meet specific oral care needs like sensitivity. The growth in toothpaste is also driven by continuous innovation, with premium product offerings, such as Colgate’s Total Professional Weekly Clean, accounting for a large proportion of NPD growth (Source: ACNielsen Scantrack Mults, MAT w/e 4th Nov 07). Colgate is still the market leader, achieving 55.5% value share through innovation and ongoing media investment (Source: ACNielsen Scantrack Mults, MAT w/e 4th Nov 07). Some key products within the Colgate range include Colgate Total, Colgate Sensitive, Colgate Advanced Whitening and Colgate Max Fresh. The Colgate Total sub-brand is the most popular toothpaste in Ireland, claiming over 16% value share. Colgate Total is the only toothpaste clinically proven to provide long-lasting anti-bacterial protection. Its unique formula of triclosan plus copolymer provides a sustained action anti-bacterial system. Colgate Sensitive not only provides proven protection against the pain of sensitive teeth but also has a great taste. The range also includes
Colgate Sensitive Multi Protection and Colgate Sensitive plus Whitening and is supported by TV advertising. Colgate Advanced Whitening contains microcrystals that gently polish teeth to restore and maintain their natural whiteness. It is currently the number one selling sku in toothpaste’s Top 10 selling Toothpaste segments (Source: ACNielsen Scantrack Mults, Litres MAT w/e 4th Nov 07).
Colgate remains phenomenally successful in Ireland through innovation and ongoing media investment.
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Care
Colgate Max Fresh, launched in 2007, is the only toothpaste infused with cooling crystals which dissolve instantly when brushing to release a freshness burst to a consumer’s entire mouth, and the brand is supported with TV advertising. Colgate is the largest selling brand in the manual brush sector with a 31.3% share of value sales, delivering 10.2% growth, ahead of the manual sector at 8% (Source: ACNielsen Scantrack Mults, MAT w/e 4th Nov 07). Key products in the Colgate toothbrush range include Colgate
over €8m and continues to deliver strong growth at 26.2% (Source: ACNielsen Total Scantrack ROI (Mults, GRP, Forecourts) H&B ex baby MAT 09/09/07). Colgate Plax has been developed and clinically tested by dentists. In 2007, Colgate added a new variant to the existing five products: Colgate Plax Whitening.
Fiacla Fiacla’s toothpaste range includes Fiacla Triple Fresh Stripe, Triple Cool Stripe, Advanced Whitening Extra, Kids Vanilla Mint Stripe, Kids Strawberry Pump and Travel Pack
The New Garnier UltraLift Pro-X range features two effective new products – UltraLift Pro-X Re-plumping Day Cream and UltraLift Pro-X Roll-On.
Fiacla Total Care 100mls will be promoted with a Free Fiacla Toothbrush inside each pack throughout the year.
360, which is the best selling toothbrush sku (Source: ACNielsen Scantrack Mults, MAT w/e Nov 4, 07). The 360 range was extended in 2007 to include a Sensitive offering and in January of this year, 360 Deep Clean was launched. 360 Deep Clean incorporates thinner and longer bristles to clean along and below the gumline and will be supported with TV advertising. Colgate Massager is the second best selling toothbrush sku (Source: ACNielsen Scantrack Mults, MAT w/e Nov 4, 07). It has has a unique flexible head that adapts to teeth & soft rubber bristles that gently massage to stimulate gums. Colgate 360 Microsonic, launched in 2007, is a hybrid brush which features advanced sonic technology to deliver an outstanding whole mouth clean. The mouthrinse category is worth 50
50ml. Fiacla Total Care 100ml will be promoted with a Free Fiacla Toothbrush inside each pack throughout the year. Fiacla Toothpaste is distributed by Allegro Limited.
Skin and Body Care The market for skin care in Ireland increased between 2001 and 2006, growing at an average annual rate of 3.7%. New product development, particularly with increased functionality for consumers, is driving the market forward and adding value to the category.
Garnier Ultralift Pro-X Garnier’s skincare philosophy has always been inspired by nature, creating high-performance formulas, enriched with naturally sourced ingredients; this has now taken on a whole new meaning with the launch of its first skincare product to use Green Chemistry, a process that
enables new active ingredients to be extracted in a more environmentally friendly way. As women get older, their skin can lose its firm feel and wrinkles appear deeper: they want quick and effective ways to fight the appearance of wrinkles, without resorting to drastic measures. New Garnier UltraLift ProX contains Pro-Xylane, derived from beech wood extract, which is a new generation molecule discovered after seven years of research. The range helps fight against the effects of collagen breakdown, such as loss of firmness and appearance of wrinkles, leaving skin feeling plumper and smoother. The New Garnier UltraLift Pro-X range features two effective new products – UltraLift Pro-X Re-plumping Day Cream and UltraLift Pro-X RollOn.
Revitalift Deep-Set Wrinkles L’Oréal Paris is reaffirming and reinforcing its expertise in the skincare sector with the launch of new Revitalift Deep-Set Wrinkles. The intensively hydrating formula combines Pro-Retinol A, an advanced innovative form of Vitamin A, Fibro Plastyl and Mexoryl XL and SPF 15 UV Protection, to reinforce the skin’s
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surface and help prevent and reduce the appearance of wrinkles. Skin looks younger, wrinkles appear reduced and skin feels tangibly firmer. The product is contained within a stylish ‘airless’ bottle that shields the formula from air and light. This latest innovation from L’Oréal Paris is an extension to the successful Revitalift range, including Day, Night L’Oréal Paris is and Double reaffirming and reinforcing its Lifting Eye expertise in the Cream. Andie skincare sector with McDowell, the launch of new Hollywood Revitalift Deep-Set actress and Wrinkles. model, is the spokesperson for the range. The launch will be heavily supported with TV, press and online advertising, plus radio promotions, PR and in-store point of sale.
Palmolive The Palmolive brand continues to grow in body care, covering Washes (Shower gel, bath additive, liquid hand soap & bar soap), Deodorant, Hair Care and Shave Foams & Gels. The Liquid Hand Soap market is seeing growth of 14.5%. Within this category, Palmolive is market leader with 34.1% value share and is currently outperforming the market, with growth of 16% (Source: ACNielsen Scantrack Multiples Value MAT week ending Feb 24/08). In the Shower Gel market, growing by 11.1%, Palmolive is a strong number two with 14.9% share and is adding the most incremental sales compared to the other Shower Gel brands (Source: ACNielsen Scantrack
Care
Carefree: Ireland’s Number One Pantyliner PANTYLINERS account for approx 23% of the sanitary protection category and are worth in excess of €4.2m and growing in volume and value YOY. Johnson & Johnson’s Carefree liners claim leadership of the liner category in Ireland, with 50% market share in total Irish grocery on a MAT basis (Source: ACNielsen, February 24, 2008, Multiples). Carefree has a full range of innovative liners designed to suit consumers’ different needs, including Carefree Perfect Fit, the liner suitable for everyday use; Carefree Aloe, which combines the advantages of a breathable liner with natural Aloe Vera; and Carefree Large, which gives 12 hour odour control. Carefree are experiencing fantastic growth with their new economy packs, which are now available in three variants; Carefree Breathable, Carefree Aloe and Carefree Flexiform. 2007 was a great launch year for Carefree, as the top selling Carefree Flexiform was upgraded. It now has a new “Cotton Soft” feel, even softer for extra comfort in any underwear and is also available in a scented version. This launch was supported with a 360 degree marketing campaign. In addition, 2007 saw the launch of Carefree Long Plus, the longest liner for unbeatable protection. The brand promises lots more to come in 2008!
for money. The Palmolive brand is Multiples - MAT w/e Feb 24/08, Value supported with ongoing national share of Deodorants excluding Body advertising and other promotional Spray). activities. Palmolive Soft & Gentle continues to be a strong number two, with 19% share of female anti-perspirant deodorants (Source: ACNielsen Scantrack Multiples - MAT w/e Feb 24/08, Value share of Deodorants excluding Body Spray), with growth fuelled by the launch of Eden. Palmolive is further broadening Eden’s success by extending the range to include new Soft & Gentle Passion Flower Roll-on Deodorant. Palmolive Washes and Deodorants are must stock items as shoppers across Ireland continue to seek them because of their trusted Palmolive Soft & Gentle continues to be a strong quality, natural ingreperformer in the female anti-perspirant deodorants dients and good value category, with growth fuelled by the launch of Eden. 51
Money matters
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Matters
Dealing with Suppliers and Banks Carmel Linnane advises on how to deal with suppliers and banks, from seeking additional funding to negotiating discounts. “However you present yourself, looking for more funding will not show you in a good light. Basically, you have miscalculated and you will need to be able to convince your bank that you are worth some additional risk.�
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Economies
of scale are a major problem for most small businesses. Basically, they do not have any. This makes life difficult, particularly for new and growing businesses trying to compete. They do not have the scale nor a track record to bargain with when dealing with suppliers and financial institutions.The bigger the business, the better the terms, whether it is borrowing money, making deals with suppliers, demanding better credit terms or getting the best prices all round. Consumers are becoming increasingly price-sensitive, to the extent that retailers and distributors are now finding they have little control over the prices they charge. If you have limited control over pricing, particularly in such a competitive arena, then the only thing you have control over are overheads and costs. Controlling your costs, then, becomes your best route to improving your profit margins. That is why getting the best prices from your suppliers is essential.
Track Record Budding businesses do not have that vital track record, nor do they have the clout or the experience to find better terms. They are at the bottom of the barrel when it comes to getting the best deal. Understandably, suppliers and
financiers ask why should they risk trusting someone they do not know when there are so many out there looking for their favours. All too often, a fledgling retail outfit will see its resources eaten up outfitting and stocking the premises. Because they are newcomers on the block, most suppliers will tend to demand pro-forma payment until a good track record has been established. This may lead to the business running out of ready cash to pay for new supplies. What can they do? Go back to the financiers and look for more funding? Easier said than done. Banks will be as suspicious as suppliers when it comes to hand-outs to newcomers. It is no wonder there is such a high failure rate of business start-ups in the first few years. Until you prove you can survive, nobody wants to know you.
Planning A business plan should be prepared at the outset, outlining forecasts for the first three to five years. This should be as detailed as possible. You must outline the total amount of cash required to achieve a healthy monthly cash flow. Calculate how much you spend in total on ongoing overhead costs, including rent, electricity and wages. You should also take into account any capital
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expenditure invested at start-up stage on things like fit-outs, signage, painting & decoration. In addition, it is always wise to include a contingency figure for unforeseen over-runs or delays. Add on another 20% to your estimates to give yourself a cushion.
Funding The best-laid plans can go astray for a multitude of reasons and you may find yourself having to go back to the bank looking for additional funding. However you present yourself, looking for more funding will not show you in a good light. Basically, you have miscalculated and you will need to be able to convince your bank that you are worth some additional risk. Most likely, your bank will insist that this additional credit facility must be secured by personal guarantees. Despite the fact that you may have set-up as a limited company, the bank wants to protect itself. So if you come back for more funding, this will be a standard requirement, regardless of how quickly you plan to pay it back. A financial institution will have a checklist of attributes to look for when assessing a new business venture. These will typically include: - the credit worthiness of the applicant; - the entrepreneur’s experience/expertise in this arena; - the demand for such a product or service; - the level of competition and any competitive advantage over similar outlets; - the long-term potential of the business; - the amount of funding the proprietor is willing to put up etc. A financial advisor, who specialises in this area, could help outline realistic cash flow potential and overheads and tell you how to highlight your strengths and minimise your weaknesses.
Suppliers Dealing with suppliers is the next big hurdle. For new companies, the negotiation process with suppliers can be particularly challenging. Larger and more
established outfits will use their purchasing power to obtain the best discounts, leaving smaller players to make up the resulting shortfall in supplier profits. You will, however, find that as your company grows and your financial position strengthens, your ability to negotiate supplier discounts will improve. The problem is surviving to achieve this status. Do your homework well before approaching any supplier. Check out other suppliers operating in the market and compare prices. The more suppliers of your products, the more competitive the terms on offer. If you find lower prices elsewhere, this could provide you with the means to negotiate successfully with your current supplier. If you do decide to switch to another supplier for cost reasons, you will need to consider other factors such as lead times and credit terms. Once you have picked your supplier, taking the time to establish a good working relationship is advisable from the outset.
Discounts Quantity discounts are often made available to buyers who can guarantee that they will purchase a pre-determined quantity of goods over an agreed period of time. These discounts usually range from 2-5%. But take care not to commit to buying more than you need
“If you come back for more funding, a personal guarantee will be a standard requirement, regardless of how quickly you plan to pay it back.”
Matters
or can afford. The amount of toys you sold at Christmas is not a gauge for the rest of the year. Early settlement discounts are another option that may win you special terms. They will vary from one supplier to another but you can expect to obtain a certain percentage off the total purchasing price for committing to early settlement. It is vital that you take your own company's cash flow position into consideration before committing to this type of arrangement. There is little benefit in paying a supplier early to avail of a discount if it is lower than the interest cost on the overdraft you have as result of making the payment.
Stock High levels of stock can place a heavy burden on the cash of a business. On the other hand, if you have too little, you cannot meet customers’ demands. That is why you need to focus on accurate stock control practices. You must know the exact cost of carrying stock insurance, premises, heating, lighting, interest etc. Know how long stock sits on your shelves before being sold. Use techniques such as sales or promotions to sell slow-moving or outdated stock. Theft and burglary is a major cost to Irish businesses so review your security procedures on a regular basis.
Maturing As you build up your credit rating, you should take the opportunity to revisit credit terms with suppliers. You can draw on your credit strength to negotiate more favourable terms and improve the bottom line. Even if the difference is only minor, such as increasing payment terms from 30 to 45 days, it will pay off over time. If your business enables you to move goods rapidly to customers, resulting in a lag between the time you are paid for the products and when your payment to suppliers is due, this allows you time to earn interest on your revenues. Deposit those revenues into an interest-bearing account and, even at low interest rates, the accruals will add up over time. Every euro counts when you are starting a new business. So take the time to do your homework.
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Yellow Fats
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Fats
Yellow Fever The development of functional spreads with healthy attributes is driving value growth in the yellow fats market.
The
yellow fats market comprises butters, fats and spreads products. The sector reached maturity many years ago with the market having reached almost 90% saturation, with the result that products became commoditised, according to a recent Mintel report into the sector. However, in recent years, with health concerns becoming progressively important to consumers, there has been an increasing focus on new product development and this is likely to be a driver for further innovation in the future. The development of functional yellow fats and spreads, such as those that help to reduce cholesterol, are helping to add value to the market, as consumer trends towards products that promote health and wellbeing outweigh financial concerns.
new 100g Butter range. As the butter category experiences a resurgence of growth, Connacht Gold Low Fat butter continues to outperform category growths with an impressive sales increases in 2007 of 12%. As health and wellbeing becomes more important to people’s lifestyle needs, Connacht Gold Low Fat Butter is ideally positioned to meet these needs. Connacht Gold introduced Softer butter in 2006 and this is now firmly established as the number one alternative to foil butter, the company maintains. Consumers now enjoy the unique taste of butter will all the convenience of a tub and the assurance of resealability. Connacht Gold continues to drive value and volume sales in the butter category with the significant recruitment of over 250,000 new users of Softer butter in 2007. New in 2008 is Connacht Gold Summer Butter. Traditionally packed in wax foil, Connacht Gold Summer Butter uses only milk sourced over the summer months to produce a smooth rich butter that is naturally soft and delicious. Connacht Gold Summer Butter is available in a 227g and 454g offering.
Connacht Gold Connacht Gold continues to grow in the butter category and is fast becoming one of Ireland’s favourite butter brands. Connacht Gold’s brand leading Low Fat and Softer Butter is being further strengthened with new Traditional Summer Butter, Butter Sauces and 54
Connacht Gold introduced Softer butter in 2006 and this is now firmly established as a leading alternative to foil butter.
Connacht Gold continues to grow in the butter category and is fast becoming one of Ireland’s favourite butter brands.
As health and wellbeing becomes more important to people’s lifestyle needs, Connacht Gold Low Fat Butter is ideally positioned to meet these needs.
Connacht Gold has again brought significant innovation to the butter category with a new range of 100g butter offerings. The range includes Creamery Butter 100g, Salt Free Butter 100g, Garlic & Herb Butter 100g and Organic Butter 100g. This exciting new range meets today’s consumer needs for individuality and portion control. Whether it’s delicious fresh garlic & herb butter for melting over baked potatoes or organic butter for its unique flavours, nobody will be
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Connacht Gold has again brought significant innovation to the butter category with a new range of 100g butter offerings: Creamery Butter 100g, Salt Free Butter 100g, Garlic & Herb Butter 100g and Organic Butter 100g.
disappointed. All four variants are packed in shelf-ready boxes for ease of merchandising. In support of Connacht Gold’s butter range, there is a significant marketing spend of over €500k to promote consumer awareness of both brand and products. Also all offerings will be supported throughout 2008 with in-store activity to drive value and volume growths.
fect balance between taste and lightness. Dairygold Balance is whipped to provide a completely innovative product in terms of texture and taste and at only 30% fat, Dairygold Balance is over 20% lower in fat than standard low fat spreads. The delicious light texture of Dairygold Balance delivers on taste, whilst remaining one of the lowest fat spreads on the market. Also available in the Dairygold range are Dairygold Original, Dairygold Light+, Dairygold Omega 3 and Dairygold Heart.
Flora
Flora is made from a heart healthy blend of natural seed oils, rich in Omega 3 and 6, lower in saturated fats than butter and virtually trans-fat free.
Flora Pro.activ will continue to be supported in 2008 by a strong advertising and PR campaign featuring Padraig Harrington who successfully lowered his own cholesterol from 6.5 to 4.7 using the products.
Flora, Unilever’s global heart health brand, is a key player in the Irish yellow fats sector and claims market leadership in the health spreads sector, with 44% value share (Source: ACNielsen Scantrack Data, 30th Kerrygold: 100% Pure Dec ’07). Flora is made from a heart Golden Dairy healthy blend of natural seed oils, UNQUESTIONABLY a household name in rich in Omega 3 and 6, lower in Ireland, the Kerrygold brand is owned by saturated fats than butter and vir- the Irish Dairy Board, a commercial dairy tually trans-fat free. The Flora cooperative, which exports and markets main brand range consists of Flora Irish dairy products abroad. Dairygold Original, Flora Light, Flora Today, Kerrygold has loyal consumers Dairygold claims leadership of the Buttery Taste, Flora No Salt, Flora in over 60 countries around the world, yellow fats sector, with a share of 28% Omega 3, along with Flora stretching from the North America to (Source: ACNielsen, Jan ‘08) and Culinesse. The brand is strongly Australia, Russia to South Africa and annual sales in excess of €33m. supported by ongoing advertising throughout Europe. In Germany, Kerrygold Dairygold Original dominates the and PR as well as the hugely sucis the number one butter brand. taste spread sector, claiming over 34% cessful sponsorship of the Flora Kerrygold’s success is clear-cut. It is market share. Well known for its Women’s Mini Marathon, which ‘real’ food, 100% natural, with no additives great taste and quality, Dairygold contakes place in June again this year. beyond salt for flavour. Nothing compares tinues to lead the taste spreads segNo food lowers cholesterol more to its superior taste, versatility of usage in ment in its position as the original than the Flora Pro.activ range, cooking, baking, glazing and dressing the dairy spread. which is endorsed by the World very best of cuisine, according to the comJust launched, Dairygold Balance is Heart Federation. This range con- pany. a low fat spread that provides the persists of extra light and olive oil In Ireland, Kerrygold's claims a market spreads, low fat yogurts, share of over 46% and is supported by TV skimmed milk and mini drinks advertising and in-store promotions. and is suitable for those wanting to lower their cholesterol and follow a healthy diet and lifestyle. The products in this range contain plant sterols, an active ingredient that's clinically proven to significantly lower bad (LDL) cholesterol. Plant sterols can lower LDL cholesterol by 10-15% in just three Kerrygold has loyal consumers in over 60 New Dairygold Balance is a low fat spread weeks, when moving to a countries around the world. that provides the perfect balance between healthy diet and lifestyle. taste and lightness.
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Olive Oil
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Liquid Gold More and more Irish consumers are switching to olive oil and other healthy oils for a taste of the Mediterranean.
The
The hugely popular Roma olive oil portfolio, renowned for its high quality.
and Don Carlos Olive Oil, from Boyne Valley Group, is sourced from the finest olive groves in the heart of the Spanish countryside. Don Carlos Finest Spanish Olive Oil has a brand new look. Clean and contemporary, the packaging features a photograph of the elusive Don Carlos making his way through his olive grove to decide just the right time to harvest his crop of olives. Clear communication on-pack makes it easier for consumers to chose the right olive oil, whether that’s Extra Virgin, Pure or Mild & Light. The range has also expanded to include three new variants: Don Carlos Extra Virgin Olive Oil enriched with Omega 3; Don Carlos Extra Virgin Olive Oil
explosion in popularity of olive oil over the last few years can be attributed to a number of factors, chief amongst them Irish consumers’ desire for foods that contribute to health and wellbeing and a willingness to embrace the healthy Mediterranean diet. Evidence from epidemiological studies suggests that a higher proportion of monounsaturated fats in the diet is linked with a reduction in the risk of coronary heart disease. Olive oil is considerably rich in monounsaturated fats, most notably oleic acid, and it has also been shown that olive oil consumption helps to improve cholesterol levels.
The new look Roma Organic Extra Virgin Olive Oil reaffirms Roma’s commitment to providing high quality organic products. Free from fertilisers and chemical plant protection, the food gives the modern consumer the opportunity to have a natural product which doesn’t compromise on taste. Roma Stir Fry Oils are also an exciting element of The massively popular range of Don Carlos Finest Spanish Olive Oil has a brand new the Roma contemporary look. range and complement the enriched with Vitamins; and Don other products in Carlos Organic Extra Virgin Olive Oil. the brand’s portfoOmega 3 oils are polyunsaturated lio. The range (good) fats and are recognised as playincludes three ing an important role in brain funcRoma unique variants – tion and maintaining heart health. Since its inception in Chinese, Thai, and Using Don Carlos Extra Virgin Olive 1958, Roma prides itself Lemon Grass, which Oil enriched with Omega 3 is an effecon being the leading promise to add tive way of increasing Omega 3 intake Italian ingredient brand flavour and zest to by the whole family. One serving of in the Irish market any stir fry dish. 15ml, used in cooking or preparing place, renowned for its food, provides 18% of the Guideline high product quality and Daily Amount of Omega 3. This oil continuous innovation. Roma Stir Fry Oils come in three Don Carlos unique variants, Chinese, Thai, retains all the rich and fruity flavours The Roma Olive Oil Spain is the largest and Lemon Grass, which promise associated with Don Carlos Extra portfolio is no excepproducer of Olive to add flavour and zest to any stir Virgin Olive Oil. tion to this innovation. Oils in the world fry dish. 57
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Don Carlos Extra Virgin Olive Oil enriched with Vitamins contains vitamins A, D, E and K, which are essential for the health and well-being of the body. Don Carlos Organic Extra Virgin Olive Oil is a rich, fruity olive oil, organically grown for the best natural flavour. Don Carlos Extra Virgin Olive Oil is produced from olives grown in Andalucia under strict environmentally natural conditions.
Filippo Berio Filippo Berio, from Kelkin, remains the only family owned Italian Olive Oil brand with a successful international presence. The severe selection process at Filippo Berio, developed from over 130 years experience in olive oil production, ensures that the consistent high quality of the brand is maintained. Filippo Berio’s Organic Extra Virgin Olive Oil is a favourite with consumers who really appreciate good quality at a good price. The new Filippo Berio Mild Extra Virgin Olive Oil gives consumers a lighter tasting extra virgin oil, while maintaining all of the health benefits of the regular extra virgin variety. The Filippo Berio range of Pure Olive Oils and Mild n’Light Olive Oils are also very popular, as Irish consumers educate their pallets to Mediterranean tastes. Filippo Berio will continue to provide consumers with value added promotions throughout the year and will be increasing investment in consumer advertising in 2008. Filippo Berio’s Organic Extra Virgin Olive Oil is a favourite with consumers who really appreciate good quality at a good price.
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Monini Monini, the authentic Italian olive oil brand, started production in 1920, focusing on extra virgin olive oil. Today, the company produces 30m litres of olive oil per year. Following the family tradition,
Zefferino Monini still personally tastes the oils and selects only the best quality to ensure a consistent flavour. Their dedication to quality and attention to detail has ensured that Monini has retained its first class rating in Italy. Over the years, the range in Ireland has grown substantially to now include Extra Virgin, Pure Olive Oil, GrandFruttato, Oilbios Organic, Grapeseed and Balsamic Vinegar, catering to consumers' every possible requirement. For 2008, Monini will be focusing on bringing premium quality oils to Irish consumers, with a variety of ongoing promotions and extra fills over the summer period. BR Marketing distributes Monini and the brand is available through all major retailers.
chilled solid fats. They are predominantly used in baking and pastry making.
Distributed by Beck Smith/Batchelors, Crisp ‘n Dry, Flora Sunflower Oil, Olivio, Mazola and Cookeen comprise some of the best known brands in cooking oil in Ireland.
Know Your Olive Oils
During summer 2008, Monini will have a variety of on-going promotions and extra fills.
Beck Smith Distributed by Beck Smith/Batchelors, Crisp ‘n Dry, Flora Sunflower Oil, Olivio, Mazola and Cookeen comprise some of the best known brands in cooking oil in Ireland. Crisp ‘n Dry vegetable oil is ideal for shallow and deep frying and is specially blended to ensure food stays crisp and dry after cooking. The Flora brand has performed exceptionally over the last number of years and Flora Oil is no exception. Flora Sunflower Oil is ideal for frying, roasting and basting and is available in 1L and 2L bottles. Cookeen and Spry Crisp ‘n Dry are
VIRGIN oil is obtained only from the olive, the fruit of the olive tree, using solely mechanical or other physical means in conditions, particularly thermal conditions, which do not alter the oil in any way. It has not undergone any treatment other than washing, decanting, centrifuging and filtering. Virgin olive oils can have the following designations and classifications depending on their organoleptic (taste and aroma) and analytic characteristics (the degree of acidity refers to the proportion of free fatty acids, not to the taste) • Extra-virgin olive oil comes from cold pressing of the olives, contains no more than 0.8% acidity, and is judged to have a superior taste. There can be no refined oil in extra-virgin olive oil. • Virgin olive oil has an acidity less than 2%, and judged to have a good taste. There can be no refined oil in virgin olive oil. • Oils labeled as Pure olive oil or Olive oil are usually a blend of refined olive oil and one of the above two categories of virgin olive oil. • Olive oil is a blend of virgin oil and refined oil, containing no more than 1.5% acidity. It commonly lacks a strong flavour.
Law article
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Law
What Does a Contract Mean? Barrister at Law Cormac O Neill advises on how we enter into legally binding contracts every day, perhaps without realising it.
Contract
law surrounds us all day every day and we generally go about our business without paying much, if any, attention to the fact that most of our transactions are governed by the law of contract. A restaurateur selling a meal, a publican selling a pint of beer and a supermarket selling a loaf of bread are examples of transactions with contractual implications. The impact of contract law is inescapable for everyone involved in business. In addition to entering into contracts with clients and customers, we also enter into contracts with our suppliers. Stock must be purchased, professional advice from solicitors and accountants must be contracted for, and we employ staff, which in itself is another example of a contract. When a person or a business enters into a contract, it will confer rights and responsibilities onto all of the parties who have agreed to be bound by the contract.
The vast majority of contracts are performed without much trouble. It is only when things go very wrong that business-people have to focus their attention onto contract law, but if business-people were more familiar with the basic provisions of contract law, it would give them increased confidence when negotiating contracts, particularly the larger ones, where they are more exposed to business and economic risks. Also, if business people are aware of contract law, it may function to help avoid conflict in the future and thus, reduce significantly the number of cases ending up in the courts.
have another friend come to spend the night at their home. The majority of contracts are known as simple contracts. They may be oral, in writing or inferred from conduct. It is often falsely assumed that oral contracts are worthless, but they are recognised by the law. Oral contracts have the obvious difficulty of proving their existence but this does not make the contract invalid. Also, contracts in writing can have their own difficulties. There are certain contracts required by law to be in writing, such as hire purchase agreements and contracts for the sale of land.
The Concept of Agreement
Legally Binding
It is important to understand that a contract is simply an agreement which legally binds the parties who have entered into it. The concept of agreement is the cornerstone upon which the contract rests. An agreement is reached after one party makes an offer to another, which is then accepted by the other party. However, there is much more involved in a contract than an agreement. Many agreements are entered into by people every day, where it is understood that neither party intends the agreement to have legal consequences, such as one friend agreeing to
After reaching an agreement, the parties have concluded the first step in the process of forming a contract. The second step is for both parties to intend the agreement to be legally binding. The test which the court uses in assessing whether the necessary intention existed is to simply analyse the words used in the negotiations, the circumstances surrounding the negotiations and the conduct of the parties, and ask would a reasonable man come to the conclusion that the parties intended the agreement to have legal consequences. When analysing contracts for this purpose, the courts draw a distinction 59
Law article
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Law
between agreements of a commercial or business nature and those of a social and domestic nature. The presumption is in that commercial-type agreements, the parties do intend to be legally bound. However, if the necessary evidence can be produced in court, this presumption can be rebutted. Reversely, where an agreement is of a social nature, the presumption exists that the agreement is not intended to have legal consequences. However, the courts will also allow admissible and relevant evidence to be submitted, which shows that an agreement reached in a social setting was intended to have legal consequences.
Consideration Once it is shown that an agreement was reached and the parties intended the agreement to have legal consequence, it must be demonstrated that consideration was present. The term ‘consideration’ in contract law means that some advantage must have been promised by each party to the other party to the agreement. For example, if a shop or supermarket agrees to provide groceries to a customer for the sum of €100, it means that each party to the agreement has made a promise to the other. The shop has promised the groceries, and the customer has promised €100. This is the consideration. A person must be able to show that there was consideration present before he/she can sue for breach of contract. A number of rules have been developed by the courts over the centuries regarding the essential element of consideration. 1. The consideration must be sufficient in law but need not be commercially adequate. This means it must exist but the courts will not investigate whether it was a good and fair deal for each party. 2. The consideration must have been supplied by the plaintiff. If the consideration was provided by someone else, this will frustrate the claim. 3. The consideration must not be vague, illegal or impossible to perform. 4. The consideration must not be in the past: it must not have been provided before the agreement was reached. 60
Ending a Contract Once a contract has been entered into, there are a number of ways by which it will come to an end. The contract will be regarded as being discharged when all of the obligations of the parties have been performed. In the past, the courts required that everything was to be done exactly as promised for the contract to be deemed to have been performed. This was known as specific performance. This rule was considered to be very harsh, however, and over time, a new doctrine emerged, known as substantial performance. This requires that if the majority of the work has been done, the majority of the price should be paid. Our judiciary now have judicial discretion in this matter and apply the rule which best fits the fact of a particular case. Contracts are entered into by way of agreement and so too, by agreement they can be exited from. If both parties agree that the contract has come to an end, the courts will uphold such decisions and agreements reached by the parties to a contract. The parties can also agree to form a new contract. If they vary the terms of the original contract and as long as consideration is present, a new contract comes into being. If something happens which makes it impossible for the parties to perform their tasks and duties under the contract, the law will allow the contract to come to an end. This is referred to as the contract being frustrated. If a shop was destroyed by fire and all of the stock was unavailable for sale, there is nothing that the retailer can do to perform the contract through no fault of their own. This is an example of a situation where the law is likely to recognise the contract as being frustrated. Any monies paid over (e.g. a deposit to a supplier) should be returned. However, the law will allow for a deduction for any expenses incurred prior to the contract being frustrated.
Breach of Contract Contracts are said to have been breached if one party indicates that he/she is unwilling to perform their promise. A breach of contract may also occur if one party indicates that he is unable or unwilling to perform his
About the Author CORMAC O Neill is a Barrister at Law on the Dublin and Southwestern circuits. He is also a Chartered Management Accountant and worked as a Financial Accountant in Banking for many years. He can be contacted on 087 6571124 or at the Law Library in Dublin.
Barrister at Law Cormac O Neill.
duties in the time agreed. It is very important that the innocent party treats the contract as breached only where a fundamental term is breached. If a minor term is breached, this will not give rise to a cause of action for breach of contract. The innocent part may sue the wrongdoer for breach of contract and seek to recover damages for actual loss suffered. Damages are an amount of money awarded to the innocent party as compensation. The damages attempt to place the innocent party as much as possible into the position they would have been in, had the contract been performed. The Statute of Limitations 1957 sets down specific time limits within which an injured party must commence their action. In general an action in contract must commence within six years. It is important to seek professional advice regarding limitations, because some causes of action are now statute barred after one year.
Update
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April08Update
Service with a Smile PICTURED at the official opening of the €7m Dublin Port Company Service Station on Promenade Road in Dublin Port are Minister for Transport, Noel Dempsey TD; Enda Connellan, Chief Executive, Dublin Port Company; and Danny Murray, CEO, Topaz. The service station, which is four times larger than a typical Irish service station, offers cars and trucks unrivalled re-fuelling facilities situated at the gateway to the Dublin Port.
Bulmers Sports Tonight Quiz PICTURED at the launch of the Bulmers Sports Tonight Quiz are (front row, l-r): model Emma Quinlan, former Irish soccer international Jason McAteer and Anna Daly; (back row, l-r): Marcus Goodwin from Bulmers, Dave Cahill from The Star, and Trevor Welch from TV3. Ireland’s biggest sporting quiz for 2008, the Bulmers Sports Tonight Quiz, in association with The Star and TV3, is hitting the road again, testing the sporting knowledge of the nation at venues all around the country. The winning team of four will win an exclusive VIP trip to the ‘European Championships 2008’.
ASJI & Lucozade Sport Honour Rovers THE All Ireland ‘Shamrock Rovers XI’ football team, which played Brazil at Lansdowne Road on July 3rd, 1973, were honoured at a function recently, organised by the Association of Sports Journalists in Ireland in association with Lucozade Sport. The Sporting Legends series commemorates the most significant sporting events in this country in the second half of the 20th Century. Although billed officially as the “Shamrock Rovers All-Ireland XI” it was the first occasion that a soccer team representing the entire island of Ireland had played together in 60 years. Pictured at the event are Ronan McClafferty, Brand Manager, Lucozade Sport, with Don Givens and Martin O'Neill.
Costcutter Opens on Dorset St PAT O’ Neill and his 16 staff celebrated the Official Opening of his brand new Costcutter store on Dublin’s Dorset St recently. The 1,800 square feet Costcutter is a welcome addition to the area, offering the very best in convenience shopping, including fresh fruit and veg, a hot and cold deli and a coffee dock. Speaking at the opening, Mark McCumiskey, Regional Account Manager for Barry Group said “We’re delighted to see such a great reaction to the opening of the store in Dorset St. The convenient location and selection of high quality brands, all at excellent value, will ensure that this Costcutter will be a wonderful addition to the area.” The store opening hours are 6am-11pm, seven days a week.
Irish Independent Travel Book Series THE Irish Independent has launched the sixth installment of its popular book series, an unmissable World Travel Guide Collection featuring 15 fabulous destinations. The World Travel Guide series should prove a hit with readers, given that Irish people made a record 6.9m international trips in 2006, a 12.7% increase on the number of overseas trips taken in 2005, according to the most recent CSO Household Travel Survey. Readers can collect the guides for only €3.99 each week with a book token found daily on page 2 of the Irish Independent.
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Whats New
15/04/2008
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April08What’s
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New
Cow & Gate Toddler Balance
New Bulmers TV Campaign
COW & Gate Toddler Balance Cereals are the first range of cereals to give babies a nutritionally balanced diet at every stage with no added sugar or salt. The range is designed to ensure the correct variety and texture for babies at every stage from first weaning to toddler shapes and textures. Cow & Gate Baby Balance Cereals include great flavours such as Stage 2 Multigrain Banana Porridge, Stage 3 Apple Crispies with mini pieces to encourage chewing and Stage 4 Hoop a Loops.
SHOT on location in and around Clonmel, Co. Tipperary, the home of the Bulmers brand, Bulmers’ new ‘Indoor Celebration’ TV ad depicts a busy time in the orchards, with workers celebrating the end of a long day’s work with a refreshing pint of Bulmers Original Cider over ice. Featuring the enchanting track 'Galway Girl' by Steve Earle accompanied by Sharon Shannon, and devised by Young Euro RSCG, the campaign runs across all television stations. A new 48 sheet Outdoor campaign entitled ‘Open Season’ supports the television advert, featuring a pint bottle of Bulmers Original Cider surrounded by harvested cider apples.
Lakeland Willow Water LAKELAND Willow Water is a sweet tasting natural spring water, whose mineral content is a unique blueprint that reflects the geology of the English Lake District. Willow Water is drawn from a deep underground lake that is fed by rainwater that filters through layers of White Willow bark sediment, laid down over centuries by vast Willow forests. Willow Water is scientifically proven to contain Salicin, the active micro-nutrient found in the bark of the white willow tree which is said to help various skin conditions and even pep up your love life.
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Pedigree JointCare+ PEDIGREE JointCare+ is a new tasty treat for dogs, launched to help the 160,000+ dogs in Ireland suffering from joint stiffness. The treats contain natural ingredients, such as green lipped mussel powder, Glucosamine and Omega 3 from fish oil – recognised for their roles in helping to promote healthy joints, regeneration of joint tissue and natural suppleness and flexibility. Pedigree JointCare+ are available in weekly seven-stick packs, in three different sizes, suitable for small, medium and large dogs. The launch will be supported by a strong TV & Press advertising, in-store promotions and nationwide PR campaign.
Avonmore Fresh Chunky Soup NEW to the chill cabinet this month is Avonmore Fresh Chunky Soup, bringing to the chilled soup category a range of chunky and nutritious soups to satisfy even the heartiest of appetites. There are three great flavours in the Avonmore Fresh Chunky Soup range, Irish Beef & Country Vegetable, Hearty Vegetable & Pearl Barley and Chicken with Mild Curry Spices. Distinctively packaged in a range of microwaveable bowls, Avonmore Fresh Chunky Soup is the perfect chunky fresh soup to satisfy consumers’ needs for convenience, taste and nutrition.
Multiseeded Grain Baguette from Cuisine de France CUISINE de France has launched the Multiseeded Grain Baguette, an exciting new line to complement their existing French bread range. The Cuisine de France Multiseeded Grain Baguette is a delicious fusion of traditional grains, crammed with a mouth-watering blend of seeds, from sunflower seeds, linseeds to sesame seeds, all combined to delivery a tasty baguette packed full of goodness and flavour. To maximise the effectiveness of the launch a comprehensive ATL & BTL campaign has been planned, ranging from outdoor media to instore activation, all cumulating in driving consumer awareness and trial.
Whats New 2
15/04/2008
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Bisto Book of the Year Awards
New Look for Shellfish De La Mer
THE shortlist for this year’s Bisto Book of the Year Awards has been announced. This is Bisto’s eighteenth year sponsoring these prestigious awards, which have grown in popularity and importance over time. Ten books have been shortlisted for this year’s awards, with both first time nominees as well as previous award winners making the shortlist. The total prize fund for the awards is €19,000, with the overall winner of the Bisto Book of the Year Awards receiving €10,000. The remaining prize fund is distributed between the Eilís Dillon Award (presented to a first time children’s author) and three Bisto Honour Awards.
THIS year sees Shellfish De La Mer enter its 21st year in business, and with it brings some exciting and challenging new adventures. In the coming weeks, Shellfish De La Mer will be launching their new packaging for their Irish retail seafood range. The new look packaging, which boasts a high definition quality finish, complements their already great tasting and luxurious seafood range. Indeed, Shellfish De La Mer’s top quality range has been documented in recent times with national TV appearances on both Nationwide and Gorilla Gourmet, and by winning the Irish seafood Exporter of the Year award.
Ribena’s Spinning Success RIBENA sales are set to go into a spin thanks to the Ribena ‘Win a Spin’ on-pack promotion, which is bursting with 500 exciting wheelthemed prizes, guaranteed to get consumers out and about this spring. The top prize is a fantastic holiday for four to San Francisco, with a pass to the 6 Flags Discovery Theme Park. Other exciting prizes include mountain bikes, scooters, carts and roller blades. The promotion is running on key packs across the Ribena range until the end of July, and is being supported by a major outdoor advertising campaign and point of sale material.
Extra Innovation From Wrigley THE Wrigley Company has announced the launch of two new additions to its Extra brand. Extra Polar Ice and Extra Arctic Ice will be available from the end of April, offering consumers ultimate freshness. The new variants freshen immediately, neutralising even strong foods and give long lasting freshness even after chewing has finished. Available in pellet blister packs, Extra Polar Ice and Extra Arctic Ice have an RRP of 60c.
Red Bull Simply Cola NEW Red Bull Cola tastes extraordinarily refreshing thanks to its special composition of ingredients, all from 100% natural sources. It is the only cola which contains both the original Kola nut and the Coca leaf. Red Bull Cola has no preservatives, additives, phosphoric acid, artificial colourings or flavours. Red Bull Cola will initially be launched in seven countries: Ireland (north and South), UK, Austria, Switzerland, Italy, Russia and the USA (in Las Vegas) in two sizes, 250 ml and 355ml. In the Republic of Ireland, Red Bull Cola is available from Richmond Marketing from mid-April.
Mateus Rosé Shiraz THIS month, Findlater Grants is launching Mateus Rosé Shiraz – a new rosé developed from the Shiraz grape from the rosé wine specialist Mateus. Presented in an original bottle inspired by the flask bottles of the soldiers in World War 1, Mateus Rosé Shiraz is raspberry in colour, and a medium dry, fresh, young and fruity wine with an intense elegant finish. Instantly recognisable as the iconic Mateus bottle, the new pack is dressed in silver foil, designed to attract younger consumers.
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Shelf Life
15/04/2008
17:52
April08Shelf
Life
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Shelf Life LIBBY Keeling has been appointed Account Director at FMI, one of Ireland’s leading cutting edge field management companies. In her new role, Libby will be responsible for maintaining relationships with key existing clients, while utilising her expertise to assess the needs of each client’s account. Libby will also be responsible for leading her team in achieving and delivering high quality results for many leading bluechip clients. THE Private Security Authority, the independent statutory body that controls and supervises those who provide private security services, has secured two successful prosecutions against providers of Installer (Intruder alarm) services, in Galway and Waterford, for breach of the Private Security Services Act 2004. “Anyone installing Intruder Alarms, whether it be in a business or private home, has to have a valid licence from the Private Security Authority and the Authority is determined to prosecute those who continue to operate without a licence”, said Geraldine Larkin, Chief Executive Officer, PSA.
TIM France has been promoted to the position of Managing Director at Ocean Advertising. Tim has been employed as Client Services Director at Ocean Advertising since February 2006, looking after a wide variety of clients, including Enterprise Ireland, Fáilte Ireland, Opel Dealers of Ireland, Simply Mortgages and Tiger Beer.
PETER Rossiter, Trade Account Manager, Woodford Bourne Direct Wine Shipments (Wholesale NI) raises a glass of Graham Beck wine to lucky winner Jill Skelton, who has won the trip of a life time courtesy of Graham Beck wines and Slatterys Travel South Africa. Jill is among four winners from Ireland who will travel in comfort direct from Dublin to Cape Town courtesy of Slatterys South Africa.
THIS spring sees the launch of EMcG Public relations. With over 17 years of experience in marketing and public relations, Liz McGonigal is branching out and setting up business, along with Mary Cahill. EMcGPR is a public relations agency whose offering is to provide straight forward, cost effective, integrated public relations service without any of the normal superfluous witter and costs! For more information on EMcGPR please see www.emcgpr.ie or contact 01 6681314.
MUSGRAVE Retail Partners Ireland has announced that it will account for €4.5m worth of fresh strawberry sales this summer. Musgrave and its network of independent retailers sold €4.1m worth of fresh strawberries in 2007, over 65% of which were sourced in Ireland, representing a retail value of €2.7m to local Irish producers and growers. Retail sales will increase by approximately 8.5% this year, with a greater proportion of Irish strawberries, given the extended supply that Musgrave can now receive from Irish growers throughout the 2008 summer season.
THE energetic members of Team Flora are encouraging women from all over Ireland to get active and get involved in this year’s Flora Women’s Mini Marathon. Pictured in St Stephen’s Green are TV3’s Sinead Kissane, Flora Brand Manager Muireann Mc Cormack, 2FM’s Ruth Scott and 98FM’s Siobhan O’Connor, who are taking part in this year’s race as part of Team Flora. 64
CONGRATULATIONS to Denise Feerick from Killester, Dublin 5, who is the winner of a Fairtrade Hamper, courtesy of Kinsale Distribution Co. and RETAIL NEWS
TO celebrate the introduction of Cranberry Probiotic to its Frusi range, HB Ice Cream announced an exclusive Frusì Dolce and Gabbana Instant Win Promotion. Consumers simply enjoy a guilt-free Frusi throughout the month of April and text the word ‘FRUSI’ followed by the last four digits of their Frusi barcode to 51101 to be in with a chance to win a pair of this season’s musthave Dolce and Gabbana designer sunglasses. Winners will be drawn daily and notified immediately. Celebrity couple Rosanna Davison and Wesley Quirke are pictured enjoying the guilt free pleasures of Cranberry Probiotic Frusi.
Reap the rewards of a trusted brand Real Food, Real People. That’s what we do and the essence of who we are. At SuperValu, we don’t just sell; we inspire our customers to share our passion for great food by providing a level of service, quality of product and a unique shopping experience simply not found amongst our competitors. Join the SuperValu brand and you will benefit from a state of the art distribution system, Musgrave Group purchasing power and the full support of our expert Sales, Marketing, IT, Finance and Store Design teams. If you are an entrepreneurial retailer and you’ve got what it takes to add to our character then take a step forward today and give us a call.
For more information Contact Willie Lyons, Business Development Director on 021 480 3000.
I.D. I.D. Help stub out under-age smoking. It is an offence to sell tobacco products to anyone aged under 18. To help retailers comply with the law, the Office of Tobacco Control has developed a DVD which explains your responsibilities and those of your staff. There is also signage available which can be displayed in store along with information guides for owners, managers and staff. These guides are available in English, Irish, Chinese and Polish. You may order a DVD and retailer resource pack by calling us on 045-852700. Alternatively both the signs and the guides can be downloaded from www.otc.ie
01001AO0659 OTC ID A4.indd 1
Let’s keep our children smoke-free
27/03/2008 11:10:24