Retail News September 2007 by Retail News

50 50

September 2007

CELEBRATING

SUCCESSFUL YEARS

RN September07Contents ●

Partnership Opportunities

■ inside view The Magazine Conundrum October is Irish Magazine Month, organised by the Periodical Publishers Association of Ireland, to help sell more Irish magazines and to promote the Irish magazine category in general. Irish Magazine Month will combine retail promotion and branding with a packed PR schedule, to educate the general public about the vast range of Irish titles available. To coincide with this month-long promotion, this month’s RETAIL NEWS sees Karen Meenan writing on the importance of a well-stocked magazine stand to your store (Page 12). She focuses in particular on the profit to be garnered from stocking and displaying Irish titles, which she describes as “the perfect product”, offering high profit margins from a minimum of space, with little in the way of running costs. However, this comes at a time of great change and upheaval in the magazine distribution business, with the country’s two major distributors, Eason and Newspread, proposing a host of changes which have been met with great anger from retailers throughout Ireland (Page 5). RGDATA Director General Tara Buckley lambasted what she termed this “high-handed action”, arguing that “Eason and Newspread are behaving like corporate thugs”. Elsewhere in this issue, Frank Gleeson, Retail Director of Topaz Energy, who own the Statoil and Shell franchises in Ireland, discusses the future of forecourt retailing in Ireland (Page 20), predicting the increasing consolidation of the forecourt sector and the development of larger service stations with improved facilities. Meanwhile, Carmel Linnane offers some practical advice on planning for the succession of your business(Page 22), we review SHOP 2007 (Page 34), while Darlene McCormick, Managing Director of Life Communications, discusses the increasing importance of sponsorship to brand and corporate communication (Page 50).

“Celebrating 50 Kathleen Belton, Editorial & Marketing Director.

years serving the Irish grocery trade.”

Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com Editor: John Walshe

johnwalshe@tarapublishingco.com

Chief News Reporter: Pavel Barter

Wine Correspondent: Jean Smullen

Financial Correspondent: Carmel Linnane

Advertising Manager: Aaron Stewart

Advertising Executive: Caoimhe St. John

T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

• Over 1,000 SUBWAY® stores now open in the UK & Ireland • Over 30 outlets operating in convenience stores and forecourt sites • Hungry for more stores with plans to open another 1,000 stores by 2010 The SUBWAY® chain is hungry for partnerships throughout the UK & Ireland with nontraditional locations such as; convenience stores (independent and chains); supermarkets; airports; train and bus stations; hospitals; colleges and universities; department stores; petrol stations and schools. The SUBWAY® chain is a known and trusted brand with proven results. A partnership with us offers excellent dual branding opportunities, high rental returns and increased customer market shares. Our stores are efficient, convenient and offer quick service throughout long trading hours. Unlike many food outlets, there is no need for grills and fryers in a SUBWAY® store - the flexibility of the franchise system also enables outlets to open in a wide range of locations. The chain provides assistance in leasing equipment, finding a suitable franchisee and employing and training staff. For more information please contact Caroline Thomson, Tel: 02894 452420 email: thomson_c@subway.co.uk or visit www.subway.co.uk/business

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: simone@tarapublishingco.com Origination by: Rooney Media Graphics

Printed by: Future Print

RN September07Contents ●

Contents 50 50

September 2007

CELEBRATING

SUCCESSFUL YEARS

News 4 Off Licence Hours to be

SHOP 2007 34 An estimated 5,000

Curtailed?

buyers and decision makers flocked to the RDS for the three days of SHOP, Ireland’s biggest food and drink exhibition, on September 2-4.

5 Fury Over Changes to Newspaper Distribution; Toy Recall Could Affect Christmas Stock.

6 Minimum Pricing on Cigarettes Repeal Proposed; Glanbia Workers Relocated After Fire.

Karen Meenan’s Top Tips 12 Retail consultant Karen

7 Poultry Campaign

Meenan gives retailers eight good reasons to stock up on Irish magazine titles,

Gobbles Up Airwaves; Musgrave Completes Acquisition of J&J Haslett.

8 Londis and SuperValu in Tug of War Over Stores; Finalists Announced in National Quality and Excellence Awards 2007.

Shop Profile 18 Les Reilly has transformed his Daybreak store in The Naul, Co. Dublin, into a one-stop shop for residents and passing trade.

The Retail News Interview 20 Frank Gleeson, Retail Director of Topaz Energy, owners of the Statoil and Shell franchises in Ireland, on the future of forecourt retailing in Ireland.

Packaging 45 Product packaging has moved from its traditional protective function to become a valuable marketing and cost-saving tool.

Sponsorship 50 Life Communications’ Managing Director Darlene McCormick discusses the increasing importance of sponsorship to brand and corporate communication, while RETAIL NEWS talks to Bulmers Marketing Manager, Orlaith Fortune, about the value of the Bulmers International Comedy Festival to the brand.

two hugely successful XL Stop & Shop forecourts in Athenry, Co. Galway.

Shelf Life 72 All the latest news and gossip from the trade.

Regulars 10 Industry News 62 Drinks News 70 Update 71 What’s New Sectoral Reports

On The Vine 60 Jean Smullen charts

Money Matters 22 Carmel Linnane advises

the progress of ‘Old World’ wines on the Irish market.

on how to plan for handing over the reins of your business to the next generation.

Forecourt Focus 68 Jarlath Cloonan runs

26 Fuels 36 Oat Cereals 38 Confectionery 54 Hot Beverages 63 Sauces & Condiments 3

RN September07News ●

Off Licence Hours to be Curtailed? THE National Off-Licence Association (NOffLA) has told RETAIL NEWS of their disappointment at suggestions that Justice Minister Brian Lenihan TD is to restrict off-licence opening times. In a recent interview with the Irish Independent, Lenihan said: “Drink has become far too easily accessible. We have to look at the point of sale. If the conclusion of our examination is that steps should be taken to curb off-licences, then we will act on that.” NOffLA spokesperson Cathal McHugh, who owns two off-licenses on the Northside of Dublin, told RETAIL NEWS that any changes to the licensing system would need to be applied to all retailers in order to create a level playing field. “If they knocked an hour off at the end of the day and it was the same for everyone in the market, there would be no difficulty. As long as there was a level playing field, I don’t see any problem. If it was draconian - whereby offlicenses were only allowed open until 6pm - that would go against consumer requirements.”

Level Playing Field The Irish Independent feature claimed that off-licenses can, at present, open at 7:30am from Monday to Thursday. McHugh said that there was some confusion regarding these details: “Mixed traders – convenience stores and supermarkets - can open at 7:30am, but a stand-alone off-licence can not open until 10:30am.” So is there not a level playing field for off-licences at the moment? “Not at all,” McHugh notes. “The ban on below cost selling led directly to a supermarket price war on alcoholic products. You don’t see supermarkets selling half price baby food to get punters through the door. Supermarkets know that beer, wine and spirits are an attractive product and that has been to the detriment of off-licences. There is no business-person in the world that can afford to sell their primary product below the cost that they buy it. That is an equation that leads to bankruptcy.” Nevertheless, the problem of alcohol abuse and underage drinking remains quite real in the Irish state. According to a recent survey, almost half of all chil4

dren aged between 15 and 17 are regular drinkers, and one in five children have admitted to “being drunk” in the past month. “We are all aware of the problems that alcohol is causing in our society,” admits McHugh. “The more outlets it is available through, the less control there is. Independent off-licences maintain that we have more of a vested interest in being responsible of the sale of alcohol, whereas for multiples it is just another product.”

Mandatory ID Cards NOffLA favours mandatory ID cards in the fight against underage drinking. Not only would these prevent youngsters from buying alcohol, but they would also safeguard an off-licensee’s business, insists McHugh. “The penalties on us if we break the liquor licensing laws are draconian – we lose our license and livelihood. Our only defence is if people show proper ID. But young people these days are far more technologically savvy than most licensees and produce convincing IDs. If you get caught out by one of these IDs, your livelihood is taken away. “Putting restrictions on off-licences is a very easy thing to do, rather than

implement education or try to increase family or parental responsibility. It’s easy to just say, ‘let’s hit off-licences’. A lot of the measures that are taken are knee-jerk. “Whatever measures are taken, much of the problem of underage drinking resides with secondary purchasing or through the home. In this respect, the hands of the government, the Gardai and off-licences are firmly tied,” concluded McHugh.

Food and Drink Prices Rising RISING global demand and bad weather are contributing to increasing food and drink prices, according to a recent Eurostat survey. In August, the price of malting barley, a key ingredient in Irish stout production, leapt by almost 60%. In 2006, Ireland had the highest alcohol price inflation of the 27 EU member states, 81% over the European average, while food and drink were the second highest, clocking in at 27% above the average.

RN September07News ●

Fury Over Changes to Newspaper Distribution retailers, while imposing a cumbersome and impractical NEWSPREAD and Easons are proposing new basis for collecting unsold copies and giving retailer’s changes to the terms by which they supply newspacredits. These companies are doing their utmost to pers and magazines to shops. Alongside a proposed make selling newspapers and magazines an unatincrease to the cost of the collection and delivery, tractive proposition for shop owners.” the distributors are reportedly planning to place Buckley revealed that RGDATA has already new charges on newspaper waste. The decision to lodged a complaint with the Competition change the terms has been met with anger from Authority on the activities of both Newspread retailers and newsagents throughout the country. and Easons and added that many retailers “Easons and Newspread are behaving like corare considering stopping selling newspapers porate thugs,” said RGDATA’s Director General, due to the costs involved. Tara Buckley. “For years they have added to Buckley said that RGDATA will be seekretailers’ costs by dumping unordered copies of ing new regulations to stop the unsolicited publications on them. They have also proved dumping of newspapers and magazines by extremely unresponsive to retailers who have Eason and Newspread on retailers. been seeking credits for unsold copies of pubTara Buckley, RGDATA “This abusive behaviour by these compalications. It is a real case of a sector where the Director General. nies has to stop,” she warned. “They hold all customers have no competitive choice and which the aces and can unilaterally change their is crying out for regulation.” terms of supply, while penalising retailers who do not comply Describing the latest changes by Eason and Newspread as by withholding their credit. If allowed to continue, these comhigh handed, unfair and impractical, Tara Buckley continued, panies will directly and very quickly undermine the main dis“Now Eason and Newspread are proposing to increase the tribution channel for newspapers in the State.” cost of the collection and delivery service that they provide to

Toy Recall Could Affect Christmas Stock TOY shipments from Mattel are running about a month behind schedule, after the toy manufacturer’s recent recall, which could potentially affect the Christmas market, according to reports. In August, Mattel recalled 116,000 toys sold in Ireland, due to safety scares over toxic lead paint and small magnets in Chinese-made products. The better-known toys that were recalled included Polly Pocket, Doggie Day Care and Batman, and an accesso-

ry part of the Barbie & Tanner toy. Although the €320m Irish toy market is dominated by major players such as Smyths, World of Wonder, Toymaster and Argos, some larger convenience stores stock toys in the run up to Christmas. Mattel have now increased checks on all toys coming to China from Ireland. The Consumers' Association of Ireland (CAI) welcomed the checks, adding that there is shortage of popular toys every Christmas.

Asda Sets Up Shop in NI A NEW Co. Fermanagh Asda superstore is to create 140 jobs and is likely to attract consumers south of the border. The 41,000 square feet outlet, located on the Derrychara Road in Enniskillen, is valued at Stg£20m and boasts cutting edge technology designed to reduce environmental emissions.

Planning Ahead DUNNES Stores has been announced anchor tenant at the new Point Village in Dublin. Located on Dublin’s quays, the Point Village will include a 130,000 square feet Dunnes, spread over three floors, with a large food court, fresh produce, clothing and home furnishings. Two new Liffey bridges will connect the area from the Southside, while a LUAS line will service the Point’s own station. A new

275-bedroom hotel, operated by the Clarion Group, will also open on site. Meanwhile, Lidl have been given the go ahead to set up shop at Ballycarnane in Tramore, Co. Waterford, but have appealed against a total of 17 conditions slapped on the discounter. The proposed store would be 1,661 square metres in size. An Bord Pleanála are to announce their decision at the end of November.

Finally, An Bord Pleanála have overruled the recommendation of one of its own inspectors, and have allowed Tesco to develop a new store in Tullow, County Carlow. The planning board announced that “‘the proposed development would not have an undue impact on the existing town centre or on the adjoining Special Conservation Area”.

RN September07News ●

Minimum Pricing on Cigarettes Repeal Proposed THE European Commission are pushing for the minimum prices on packs of 20 cigarettes to be abolished, arguing that minimum pricing distorts market competition, safeguards manufacturer profit margins, and makes it more difficult for new entrants to the market. Both the Irish government and anti-smoking groups are vehemently against such a move. Ronan Barry, Corporate Affairs Manager for P J Carroll, told RETAIL NEWS that tobacco companies are not involved in the current dispute. “At the moment, we have a minimum price so it is business as usual. Tax rates are very high so you could argue that there is a necessity for a minimum price. On the other hand, if you don’t have a minimum price, you tend to have great variance between the bottom and top ends of the market. Factually, minimum prices (like any price fixing measure) do restrict competition between tobacco companies,” he said.

Effective Tobacco Control A spokesperson for the Department of Health & Children told RETAIL NEWS

Glanbia Workers Relocated After Fire WORKERS at Glanbia have been relocated after a fire destroyed the company’s meat processing plant in Edenderry, Co. Offaly. Out of the 280 staff who worked at the plant, 60 will be given full-time work at the Glanbia-operated Parkmore site in Roscrea, County Tipperary, while 60 administration and sales staff will continue to work at Glanbia’s Edenderry offices, which were not affected by the fire. The remaining 160 employees are being offered part-time work at the Glanbia Meats Carrick site in Roscrea. 6

that the government has identified price as an effective tobacco control measure, particularly in preventing young people’s initiation and subsequent addiction to tobacco: “Ireland's national tobacco control measures in this area date back to 1979 and, currently, the mechanism that establishes a floor price for cigarettes is an important component in national tobacco control policy.” She added, “Taxation alone is not a sufficient mechanism in smaller markets such as Ireland, where the industry may decide to challenge national health measures by absorbing taxation increases in whole or in part - a strategy that would be impractical in larger markets.” Ronan Barry claimed that the main reason that Irish cigarette prices are the highest in the euro-zone is due to tax. The tax structure in Ireland is rigid (high specific and low ad valorem) and rates are high approximately 80% of the price of a pack of cigarettes goes on tax. “Accordingly, it is difficult to see how aggressive price discounting could be possible,” he noted. Hypothetically speaking, if the minimum price were to be abolished, would it lead to a cigarette price war? Barry admits that we could see generic, nonbranded cigarettes entering the market as they have done elsewhere, but this would be unlikely due to the country’s high tax structure. Irrespective of the retail selling price, the government requires tax.

Smuggled Cigarettes The dispute is somewhat theoretical, especially when considering the easy availability of cheap smuggled cigarettes on the Irish market. “Currently, consumption of cheaper foreign cigarettes is estimated at circa 20%,” Barry stated. “While not all of this is due to illegal trade, the substantial rise in customs seizures (by end of June this year, customs seizures in 2007 had already surpassed the whole of 2006) indicates that black market trading is substantial. PJ Carroll, and other tobacco companies, together with customs authorities are working hard to curtail this problem.” The fact that consumers can already purchase cigarettes from anywhere between €3 and €5 at markets, street stalls and other locations, is already affecting retail trade. “Arguments regarding the price of legal cigarettes appear pointless, when one considers the widespread consumption of foreign cigarettes at half the legal price,” said Barry.

RN September07News ●

Poultry Campaign Gobbles Up Airwaves THE Irish poultry industry has launched a new campaign to encourage consumers to purchase chicken with the Bord Bia Quality stamp. This nationwide promotion includes TV and radio advertising, promoting chicken’s healthy properties, and includes the involvement of 400 retail outlets. “The campaign is trying to differentiate Irish chicken from foreign chicken,” Vincent Carton of the Irish Poultry Processors Association (IPPA) told RETAIL NEWS. “At present, over half of the existing fresh chicken market is taken over with imports and people don’t know it. Research indicates that over three quarters of people want to know where their food comes from. The Bord Bia Quality Assurance scheme guarantees traceability. Consumers can check that the product is Irish - the egg was hatched in Ireland, the farm is in Ireland, and the processing plant is in Ireland. Secondly, we are trying to get across the versatility of chicken and that fact that is so low-fat and healthy.”

Industry in Turmoil Carton, who is also Managing Director of Carton Brothers, which owns the Manor Farm brand, admits that Ireland’s indigenous chicken industry has been in turmoil in recent years.

Diageo Manages Its Energy DIAGEO Ireland has become the second only company in Ireland to be accredited with the new IS393 Energy Management Standard. The National Standards Authority of Ireland (NSAI) awarded the Standard to St. James’s Gate Brewery.

During the Avian Influenza scare, poultry sales slumped in Ireland by 20%, despite the fact that the disease never crossed our borders. Does he believe that there was enough of a concerted effort to get the message across that Irish chicken was safe? “At that stage, we were firefighting,” he says. “Avian Influenza occurred from October 2005 through until April 2006, and popped up again in Bernard Matthews in February ‘07. Every time, it became more a media event. For example, when the Turkish and Romanian events occurred, it had blanket news coverage. Then, when the French found a duck that was positive, there was huge media coverage. “In Ireland, we like our breast meat over our leg meat - for every eight fillets, I sell one leg. Avian Influenza was occurring in Eastern Europe in particular - the place where we sell our leg meat. In the Irish industry, cold stores were filling up with frozen leg products that traditionally would have gone straight to Eastern Europe but didn’t

budge for nine months. As Western media became more focused, demand was dropping and chicken that we slaughtered were put straight into cold stores. Product was building up without selling. From a financial point of view, we were in no position to do anything other than batten down the hatches and survive the period.” Vincent Carton said that times have now changed and chicken is once again one of the largest consumer meats in Ireland. Irish consumers eat over 29 kilos per person per annum – both Bord Bia and the IPPA hope that this campaign will further boost chicken sales in the future.

Musgrave Completes Acquisition of J&J Haslett MUSGRAVE Group has received regulatory approval for the completion of its acquisition of J&J Haslett, a major food wholesaler and cash and carry business in Northern Ireland. The transaction, which was completed on September 17th, was subject to the regulatory approval of the Competition Authority in the Republic of Ireland and the Office of Fair Trade in the UK. J&J Haslett, which has been in business since 1854, supplies almost 200 Mace and 70 XL Stop and Shop stores as well as operating seven Holmes Cash and Carry outlets. The business in the year to 31 December 2006 had

a turnover of Stg£192 million (€282m) and employs 360 people at eight locations across Northern Ireland. Chris Martin, CEO of Musgrave Group, said, “We are pleased that regulatory approval has been granted and that the transaction can now be completed. J&J Haslett represents an excellent fit with Musgrave in terms of values and culture. We are committed to working in partnership with its entrepreneurial Mace and XL Stop and Shop retailers as well as its Holmes cash and carry customers to further grow the business in the Northern Ireland convenience market.” 7

RN September07News ●

Londis and SuperValu in Tug of War Over Stores SEVEN stores recently absconded from the Londis network in favour of Musgrave SuperValu-Centra. However, according to a Londis spokesperson, four have been forced to remain with Londis in order to fulfil their contractual obligations. The spokesperson told RETAIL NEWS: “A High Court application by ADM Londis Plc, for an Interlocutory Injunction against Sean Donovan and Killian Duffy and four companies controlled by them, was adjourned to the satisfaction of ADM Londis on Tuesday [4 Sept]. “The Court was advised that the Defendant companies and Mr Donovan and Mr Duffy, have acknowledged and confirmed that they will honour contractual obligations. As a result, four stores (Balbriggan, Newlands Cross, Lucan and Naas) will fulfil their contractual obligations and continue as Londis stores. This development follows a recent announcement by the Musgrave Group that the four stores would join Musgrave

Supervalu-Centra with immediate effect.” Six of the seven initial stores are owned by Dublin retail partners Sean Donovan and Killian Duffy - a further Londis supermarket in Rathfarnham, owned by Dominic and Geraldine Duffy will convert to the SuperValu brand. The seven stores contributed about 4% of Londis’s €723m turnover. However, ADM Londis did not take the news lightly, instigating legal proceedings against the owners, claiming alleged breach of contract and fiduciary duties of the directors involved. “Londis is aware that store wins and losses are part of the normal cut and thrust of business. However, nothing about this proposed move is normal,” claimed Londis in a press release. When RETAIL NEWS contacted Sean Donovan at his former Londis Plus store in Greenfield Shopping Centre, Maynooth, he remained tight lipped, informing us that he had been advised not to talk about

Finalists Announced in EIQA Awards 2007 EXCELLENCE Ireland Quality Association (EIQA) has announced the finalists, from over 3,000 entries, for the National Quality and Excellence Awards 2007, which will take place in the Burlington Hotel on Thursday, October 11, 2007. This is the 37th year of the Awards, which are divided into 22 categories, spread across three main areas – Quality and Excellence, Hygiene and Food Safety and Employee Engagement. A number of grocery stores and suppliers are amongst the finalists, including SuperValu Cavan, Centra Gorey, SuperValu Glanmire, Musgrave Group, BWG Foods Ltd and ADM Londis. This year sees two additional categories being added to the Awards – The Rehab Group National Team of the Year and the Rehab Group National Team Player of the Year Award, with the finalists list selected from hundreds of entries. In addition, this year the EIQA have the first ever Northern Ireland Retail Hygiene Award, which is helping to bring a unified quality and excellence on both sides of the border. Along with the three new categories, the EIQA has developed a 'Service – Profit' model that forms the backbone of their assessment methodology, proving the 'cause and effect' link between employees who are enabled to do their job efficiently, thereby leading to a better customer experience, which in turn leads to the organisation achieving its desired results. For further information, see www.eiqa.com 8

it and refused to confirm or deny that his store had changed allegiance to the SuperValu group. Meanwhile, a RETAIL NEWS call to Dominick Duffy’s former Londis store in Rosemount Shopping Centre, Rathfarnham, Dublin, was answered with a “Hello, SuperValu.” Duffy was also reticent to talk, refusing to comment on the situation. Prior to the legal proceedings, Donal Horgan, Managing Director of SuperValu and Centra, welcomed the new trading partnerships and said that the decision to join forces with Centra and SuperValu is an endorsement of the strength of the two brands. “We very much look forward to working with our new retail partners,” he noted, “and wish them every future success in continuing to grow their business under the SuperValu and Centra brands.” Horgan was not available to comment on the decision of four stores to fulfil their contractual obligations.

Tipperary Water Saddles Up! TIPPERARY Natural Mineral Water was the official water sponsor of the Tour of Ireland Professional Cycle Race, which took place from August 22-26. A specially branded Tour of Ireland/Tipperary Water Truck travelled along the Tour Route, keeping all the riders hydrated during the five-day event, with over 12,000 litres will be consumed by the riders, VIP hospitality and race staff. Cycling legend Sean Kelly and Marie Cooney, Director, Tipperary Water, are pictured at the launch of Tour of Ireland in Dublin Castle.

It’s called the Supereasy Supermarket. But, it could be called the Superinnovative, Superglobal, Superlocal, Superindependent, Superproﬁtable, Superﬂexible, Superfresh, Supereasy Supermarket!

If you’re interested in a truly super retail opportunity, contact Declan Ralph on (086) 409 0300 or Deirdre Gallagher on (01) 409 0362 / 409 0300

RN September07Industry News ●

Dressed To Impress KAREN Brett and her 18-month-old daughter, Sarah, were declared Garveys SuperValu Best Dressed Mother & Daughter Duo at the Tralee Festival Races on August 25. First prize was a full day’s pampering for two in the luxurious Peninsula Spa in the Dingle Skellig Hotel and two superb Garveys SuperValu Hampers. First runners up were Tina Wall and her daughter Kathleen Wall Sheehy, also both from Tralee. They received a specially created Mothers & Daughters’ hamper from the Garvey’s SuperValu range. Caroline McEnery, HR and Operations Director, Garvey Group, is pictured with winners of the Garvey’s SuperValu ‘Best Dressed Mothers and Daughters’, Karen and Sarah Brett, with head judge, TV3 star Lorraine Keane.

New Marketing Manager at Birds Eye PATRICIA Wilson has been appointed Marketing Manager at Birds Eye Ireland. In her new role, Patricia will be responsible for strategic brand development, including the formulation of long term portfolio strategy incorporating brand communications. Patricia will also have category responsibility for the Fish, Potatoes and Ready Meals categories.

Flora Cholesterol Lowering Challenge

MODEL Andrea Roche is pictured launching the Flora ‘3 Step Cholesterol Lowering Challenge’, which is available to consumers through the Flora pro.activ on pack promotion, currently running in stores. Using a unique on-pack code, consumers can request their own ‘3 Step Cholesterol Lowering pack’ which includes recipe cards, a magnetic fridge planner and a booklet with information on the 3 Step approach to lowering cholesterol – The Facts, The Foods and the Fitness Tips.

Superquinn’s Most Photogenic Pet MAYNOOTH local Sarah Hegarty’s dog, Cujo, has been recognised as the most photogenic pet in Ireland, after a tremendously successful competition run collectively by Pedigree, Whiskas and Superquinn. The Pet Show Competition ran in 22 Superquinn stores throughout the country and attracted a huge number of entries. Sarah (pictured with Cujo) was presented with the prize of a luxurious family holiday to a pet-friendly hotel in Ireland worth

€1,000. Additional Superquinn stores selected a local winner as well, and they each received a Family Day Pass to Dublin Zoo.

Ballygowan Announces Adidas Dublin Marathon Sponsorship PICTURED announcing Ballygowan as the official water sponsor to the Adidas Dublin Marathon 2007, is Mary Nolan Hickey, the only woman to have run every Dublin Marathon to date and Barry Cullen, who is running for Ballygowan in his first Marathon this year. Ballygowan has announced a new three-year, sporting sponsorship deal as it becomes the official bottled water sponsor to The Adidas Dublin Marathon, for the first time. Ballygowan also announced the launch of its Marathon Training Corner on www.ballygowan.ie, which will offer participants exercise tips and suggestions for adjusting their diet and nutritional intake in preparation for the Marathon.

RN September07Industry News ●

Londis’ Haute Couture Promotion ADM Londis plc has announced details of every fashionista's favourite treat, with their new ‘From Your Store to Couture’ in-store promotion. This major giveaway promotion will see 100 lucky Londis customers escape the recent summer blues and take the opportunity to grab some stylish new outfits with a shopping trip worth €2,000. In addition, every entrant will automatically be entered into one of four provincial draws to win a luxury-shopping trip to the value of €5,000. ‘From your store to Couture’ is running for six weeks in over 360 Londis stores nationwide. The promotion is being supported by an extensive marketing campaign worth over €200,000 – including PoS, radio, press and national outdoor advertising.

Superquinn Trucking Ahead McELVANEY Motors Ltd has delivered 13 new R420 Scania Tractor Units to Superquinn and its distribution partner, Wincanton, a leader in advanced supply chain solutions. Together, Wincanton and Superquinn have developed a €35m National Distribution Centre in Blanchardstown, Co. Dublin, which handles the warehousing and distribution of chilled and ambient temperature grocery goods for the Superquinn supermarket chain.

Diet Coke’s Design Can Collection DIET Coke have launched a limited edition collection of six 330ml cans. Each can features a colourful design taken from the world of fashion, textiles and art, which is printed directly onto the can’s surface. 2007 sees Diet Coke ‘Design Can’ emerge in full vibrant colour and challenges consumers to ‘Choose the Look You Love’ from the collection of six cans. To celebrate this launch, Diet Coke also unveiled one-of-a-kind designs inspired by the cans, which were created by top Irish designers. Alex Phelan, Diet Coke Brand Manager, is pictured at the launch of Diet Coke Design Can 2007

Odlums Lifts Top Award OVER 50 leading Irish food and drink companies exhibited at this year’s Marketplace Ireland, the Bord Bia-organised event which showcased the know-how, capability and culture of innovation now flourishing in the sector. The two-day event was attended by over 220 international buyers with a purchasing power of €135bn who participated in 2,600 prearranged business meetings. Odlums Quick Pancakes Special Editions was awarded the ‘Best In Show’ prize for the most innovative product. Pictured are (lr): Larry Light; Stephen Odlum, Odlums

Marketing Manager; and Aidan Cotter, Bord Bia Chief Executive.

MDI Say Thank You to SPAR SAFANN MacCarthy, Marketing Manager, SPAR, is pictured presenting Joe Mooney, Director, Muscular Dystrophy Ireland (MDI) with a cheque for €80,000 raised from the SPAR/MDI Have a Heart Campaign. The campaign saw hundreds of heart shaped chocolates from Lilly O'Briens on sale in all SPAR stores nationwide over February, with 100% of the proceeds going to MDI. SPAR is proud to be associated with MDI, who provide a number of support services and

respite for people and their families who are affected by muscular dystrophy and allied neuromuscular conditions.

RN September07Karen Meenan’s Top Tips ●

Make More Money From Irish Magazines Retail Consultant Karen Meenan gives retailers eight good reasons to stock up on Irish magazine titles to boost their sales in-store, to coincide with Irish Magazine Month, organised by the PPAI.

What

is the most profitable department in your store? Confectionery? Delicatessen? Coffee to Go? Tobacco? Fruit? Smoothies? While each of these categories is profitable in its own right, it would be foolish to just look at the gross margin typically achieved for each product in that category without factoring in other associated costs too. Most retailers will agree that the deli, particularly hot food, is the profit centre of the store, and with gross margins of over 40% it is easy to see why there is consensus on this matter. However, the gross margin only relates to the difference between the cost price and the selling price of that product. It takes no account of the equipment costs, maintenance contracts, electricity costs, fit-out and running costs of walk-in cold rooms and freezers, and of course, wages. The Newsagency, in particular the magazine stand, is an area of the store which has similar turnover to that of the delicatessen and yet is

Hot Press has consistently increased its readership

rarely seen to be as through targeted promotions. important in the eyes of the retailer. In a recent survey of 20 would not need to be kept chilled or different symbol group stores – 10% of frozen until used; and it would have the retail sales turnover was full sale or return. And more delivered from the delicatessen (hot importantly, your customers would and cold) and another 10% of the have to like this product and for good retail sales turnover was delivered measure, it would be an advantage if from newspapers and magazines. So it were recession proof. And if by why is one 10% perceived to be more selling this product, you were profitable than another? contributing to the Irish economy, by securing some Irish jobs, wouldn’t that be the icing on the cake? The Perfect Product Does such a product exist? Perception is reality – if everyone in Magazines seem to fit the bill the store and most visitors to that perfectly! store too, perceive that the deli is the profit centre – then it is! Or is it? As retailers, let’s focus for a minute on Equipment the perfect product. Equipment needed for Newsagency So, what would constitute a department: 3-metre bay of deeper perfect product? It would have a price shelving – dimensions need to be higher than the average sale price; it 100mm wide to accommodate 20 would require no running costs such copies of a weekly title or 10 copies of as electricity; it would not require a a monthly. The trade-up from maintenance contract; it would have standard shelving to deeper units is not prohibitive – average cost for a an acceptable gross profit margin; it metre bay of deeper shelving is would not require any storage; it

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For more information on joining a winning team, contact; Fiona O’Donovan or Alan Dickenson on 021 480 3000.

RN September07Karen Meenan’s Top Tips ●

Business Plus is a monthly publication that has been on newstands since 1998, focusing mainly on the SME sector, and targets readers who own their own business or are self-employed.

around €500. Why deeper shelving – will standard not do? In a test store which had a one metre bay of standard shelving and a one metre bay of deeper shelving, almost twice the amount of stock was displayed on the deeper shelves. Why is this important? In order to display a range of titles which appeal to a broad spectrum of customers, from preschool titles such as Postman Pat and Tractor Tom to mature titles such as Ireland’s Own and Woman’s Way, at least three bays are required. In the bay of standard shelving, 310 magazines were displayed – in the deeper unit, the amount of copies almost doubled to 600. This might sound like stating the obvious, but once the deeper shelving is in place, you are literally ready to go and grow your magazine sales. You will be able to pack out all your stock on the shelving without having to give two facings to any one title or without having to store unopened parcels underneath the magazine unit. Unopened parcels are the death knell for this category.

New Magazine Titles There is usually a lead time of 3-6 months before a new title appears in

your store. This title has been researched and piloted amongst test purchasers before it is finally launched. As retailers, all your have to do is open the parcel and place the titles in the appropriate spot on the stand. Yet why do so many new titles fail at this point of the procedure? Many brand new titles which have been successful in later issues have been returned by retailers (or by those who work in the magazine department who took an executive decision to stock or delist those brand new titles) on the very first issue. Take Irish launch The Gloss for example – a well researched title which was positioned to compete with existing mature women’s monthly UK titles such as Vanity Fair and Harpers Bazaar. The cover price was €4 – a welcome price point – 25% of €4 on a product which is fully sale or return is good news for any retailer. This launch of this title was well heralded – there had been advertisements in The Irish Times, the perfect target market for this product, and its arrival was announced on Radio 1 – again the perfect target market. So back to the original question, why did so many shops return the full quantity distributed and return the launch issue as unsolds without giving it a chance to sell from the magazine stand? The Gloss only

started to make real progress onto the magazine stands in later months and now is outselling its original UK competitors. This phenomenon of returning a batch of brand new titles as unsolds is not just reserved for Irish titles, however: this practice of stores returning full copies without ever positioning them on the stands is widespread. Another recent UK launch, ‘What’s on TV’, which was ironically advertised on TV using a well-known Irish actress and had a very attractive consumer price point of 90cent, was also returned in full amounts. The reason given by many who return full issues without giving them a chance to sell or not from the magazine stands is universally met with a groan, “Where will I put them?” It is the responsibility of the retailer to provide that space and alleviate this bottleneck. Imagine if the staff in the deli counter had to cope with storing deliveries of fresh stock in the tiny refrigerated cabinets under the deli counter? Your deli has been well planned and well researched and there is adequate equipment already in place. Most stores have a walk-in freezer and a walk-in cold room to boot. Adequate stocks of a variety of deli products are stored here until needed. Considerable investment has been made in the deli in terms of getting the right equipment and anticipating the needs of that category in order to run smoothly – so what is needed from the retailer is to use the same logic with the Newsagency department.

Display Options

What’s On TV, a low cost (90cent) weekly look at what is on TV: its launch was supported with a heavyweight TV campaign.

A quad unit works very well as both a storage and display unit for newspapers – and it alleviates the weekly Sunday newspapers on the floor (with supplements falling out) disaster, which is so common in stores all across the country. Quad units are inexpensive – approximately €500 – they can display 16 newspaper titles and also have hot spot units for 12 magazines. A quad unit in addition to 3-metre bays of deeper shelving is the least you can provide to be a serious

RN September07Karen Meenan’s Top Tips ●

stand, would now begin to smell? That might sound like the point is being exaggerated, but let us get back to the statistic – 80% of the sales of that title are made within 48 hours of being delivered. So, if your customer didn’t buy their favourite magazine in your store (the bundle was unopened remember), where did they go to buy it - to your competitor perhaps? And what other purchases did they make while they were shopping with your rival?

Newspaper stock. This equipment is inexpensive and the best news of all is that there is no running cost, electrical or otherwise associated with this department. Compare and contrast this with other profit centres in your store – the delicatessen with a hot and cold serve-over, walk in freezer and walk in cold room, combi oven and microwave, not to mention knives, bowls, sinks, cleaning equipment and freshly laundered uniforms. c) No Maintenance Contract

Ingredients for the Perfect Product So back to the perfect product – the ingredients needed are as follows: The Gloss, this recently launched Irish magazine is performing extremely well.

supplier of magazines to your customers. Hot spot units, or A4 perspex holders for magazines, are a very useful way of selling more titles – they bring colour and an extra dimension to the stand and are good at highlighting best sellers on the unit. The titles promoted can change frequently to maximise the sales potential by being cross merchandised with a daily purchase – a newspaper. Research shows evidence of cross purchase between broadsheets such as The Irish Times and Golf Ireland and The Irish Garden, so this is a very useful way to sell more stock. This can become a vibrant fresh stock focus in the centre of your store, particularly if the range of magazines displayed in hot spot units in the quad unit is refreshed on a daily basis. Daily newspapers, by their very nature, are fresh every morning – so too are magazines. 80% of the sales of every title in your store are made within the first 48 hours of that bundle arriving to your door. Suppose your dedicated member of staff who looks after the Newsagency is on a day off or has phoned in sick – who opens that bundle of fresh stock? Do you? Does your manager? Would someone in the deli notice that the unopened bundle is as fresh as a delivery of chicken which, if left unopened and not placed on a display

a) Sale Price Above the Average Sale In a survey of convenience stores country wide, the average sale price was around €5. In larger stores such as SuperValu and EuroSPAR, the average price is higher at around €8. So as a retailer, if you want to launch a new product to your existing range of stock, a new product with a unit price of the average sale price or higher becomes immediately attractive. Magazines, particularly monthly titles with cover prices in excess of €5, fit that bill nicely. New products in the confectionery department are welcomed as drivers of volume in that category and all retailers eagerly await the arrival of crème eggs in January as a much needed burst of impulse purchase, but at a retail price of less than €1, it takes a lot of volume sales to realise a lot of net profit. As a retailer, you would have to sell five confectionery lines to match the cash profit available from one glossy monthly title.

These are hidden overheads associated with the effective running of a store – there are maintenance contracts for freezers, cookers, hot and cold serve over units, scanning equipment, security cameras and other equipment such as scales. And even if there is no maintenance contract in place, there is always the likelihood that where there is equipment, there is also a propensity for a breakdown of that equipment. d) Acceptable Gross Margin The gross margin for magazines and newspapers is a standard 25%. Some titles are a little lower, some are a little higher – but an average gross margin of a category which requires

b) No Electrical Running Costs To sell magazines and newspapers effectively, you require at least three metre bays of deeper shelving. In addition, quad units are a very effective way of displaying and selling newspapers on a daily basis and are particularly useful at coping with high levels of Sunday

House Magazine features architects’ floor plans and, more importantly, lists where to reach these architects if you live in Ireland.

RN September07Karen Meenan’s Top Tips ●

Irish Property Buyer, a monthly look at where we should place our hard earned cash, is selling well across the country.

no other overheads such as special equipment, leasing, maintenance, electrical running costs and an acceptable cover price is starting to look very attractive. e) Full Sale or Return Once you have mastered how to manage this category successfully (and there are very vital pieces of learning associated with the correct procedures for getting credits on unsold stock), then there is no risk associated with running a successful profitable news-agency. All items are offered from your distributor on a full sale or return basis. You have the freedom to cull

slow movers from your stand to make way for more attractive fresh stock which has just arrived at your door and still get full credit on all unsolds. There is a strict returns procedure, however, which seems to be the stumbling block for many retailers. If you have lost money in the past due to incorrect or late returns, there is a natural resistance amongst many stores to further invest any more time or energy on this category. The solution is in overcoming the obstacles placed by the distributor in terms of unsolds procedures and “boxouts” and in communicating with those suppliers (preferably by email and/or fax – not telephone) in an effort to maximise sales and minimise stock losses. In short, the retailer needs to fully understand how the system works. Other departments such as fruit & vegetables operate on a stock loss basis every day and yet this does not appear to have any negative impact with the retailer. Shrinkage or unsold stock is a fact of life in retail – but not all departments are equipped with a returns procedure for you to reclaim back all your money like the newsagency. f) Recession Proof There are many UK studies which show that once a magazine buying habit has become established, then that habit stays with the customer as a life-long purchase. Weekly magazine purchases often start when disposable income is

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

high – in the UK, this habit started in earnest in the 1980s when their economy was booming. In later years, that buying habit continued even though money was not as readily available as before – the habit of buying magazines tended to appeal to customers in good times and bad. When money is tight, the purchase of a product for around €5 is seen as an affordable treat, one of life’s little luxuries – when money is plentiful, magazines are purchased as a pre-cursor to a higher spend on fashion, home improvements or garden accessories. Our boom started a decade later than the UK and already there is a new interest in the magazine category in our stores. Sales increases in Ireland are unprecedented, with more and more UK titles looking to the Irish market to grow their sales. There is a natural life cycle to magazines: any little girl getting a weekly copy of Disney Princess or Barbie is tomorrow’s purchaser of Now Teen, Mizz or Irish title Kiss. These pre-teens then buy celebrity and soap titles, women buy fashion or lifestyle and the more mature market are loyal fans of household names such as Ireland’s Own. Compare this with any other category in your store – can you sell other products in good times as an investment or in bad as a treat? g) Customer Appeal The most important reason why you as a retailer should make more money from magazines is that your customers like them! In a recent UK survey, it was found that there are two areas in-store where customers still seem to enjoy the “shopping experience” and they are the magazine stand and the wine/off licence department. Most customers still see shopping as being a drudge – even though we as retailers have invested heavily in areas such as fixtures, fittings, scanning equipment, lighting and shelving, your customers are not really interested in the store layout as such. Your customers are used to quality retail outlets, so your store being as “up to the minute” as the next just makes you part of the quality outlet

RN September07Karen Meenan’s Top Tips ● www.anuga.com choice that customers of today expect. What your customers are really interested in is an escape from the drudgery of “doing the shopping”. Many view going to the shops or the supermarket as a chore – a job to do when their other job is done. What the magazine stand and the wine section offer the customer is a form The RTE Guide, a consistently of escapism – a few top selling title. minutes’ peace and quiet in an otherwise hectic day. The magazine is as appealing to the toddler pointing at Fun to Learn Favourites from his buggy as it is to the businessman buying a copy of Irish Property Buyer. The magazine stand has particular appeal to women. Monthly titles are appealing to fashionistas, brides, garden lovers, home buyers and DIY enthusiasts. Men’s titles have been so successful over the years with titles which range from fashion to sport, computer gaming to lifestyle and health magazines, that two new product launches, Nuts and Zoo, are finding their way into the Top 20 titles in many stores. h) Irish Magazines Offer Relevance for Irish Customers And so, the final good reason why you should stock magazines, your customers like them and they particularly like Irish titles, which have grown in number and improved in quality over the last decade. Well known titles such as IT, Image and U have long been part of the staple diet of fashion-conscious Irish women – the main reason being that all titles offer relevance to the consumer. It makes sense to the would-be shopper to know that the items modelled within the covers are available in leading stores throughout Ireland and all prices are in euro. It also makes sense to anyone considering home improvements to invest in an Irish title such as House, The Investor or Irish Property Buyer, while newer launches such as Prudence and Women Mean Business have a fierce cult following, and household names such as Hot Press have been gathering new customers every year though careful target marketing on university campuses. And who would have predicted the runaway success of new title You And Your Money, featuring the household name Eddie Hobbs. What bride-to-be with a year to plan her perfect day would not invest in many if not all Irish bridal magazines to see where she can get the perfect dress, shoes, stationery, and cake all available locally and all prices in euro? In short, Irish Magazines are good news for your store and your profit margins.

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RN September07Shop Profile ●

Daybreak Shines in The Naul Les Reilly has transformed his Daybreak store in The Naul, Co. Dublin, into a one-stop shop for residents and passing trade.

Les

Reilly’s Daybreak shop in The Naul, Co. Dublin, is the labour of love of a progressive store owner, rejuvenating the shop he worked in as a child. Working with the Daybreak Team, Les has radically transformed a once small local shop and created a one-stop shop for local residents and passing trade. “I’ve been involved in grocery retail all my life really. I worked in this very shop during my free time when I was a kid at school,” Les tells RETAIL NEWS. “I suppose the foundation of this project was laid when I began working in the local SuperValu. I learned an incredible amount in the time I spent working there.” Les admits to dreaming about opening his own store a number of times over the years, but it often seemed more of a daydream than a real possibility, until the opportunity arose to purchase the local store in his home town. “When the opportunity to acquire this shop presented itself, I saw a chance to take the step up to opening my own store,” he smiles.

His experience with Supervalu had made the advantages of working with a symbol group very clear to Les. He immediately began talking to various groups about his plans for the shop in The Naul. Les knew the Musgrave SuperValu-Centra operation extremely well from his days in SuperValu and was aware of the professionalism of the organisation. However, it was more than past experiences that inspired his attraction to the Daybreak format. “The Daybreak package appealed very strongly to me,” Les explains. “I liked the store image, I liked the priorities of the four ‘hero’ categories, and I liked the people I met from the Daybreak Team. It’s very important when taking on a partner for such a large project that you are 100% happy with them and that only happens when you are

Pictured are Anthony Nolan, Daybreak Territory Manager, store owner Les Reilly, and Colm Dolan, Daybreak Symbol Project Manager. 18

RN September07Shop Profile ●

sure they are professional, capable, knowledgeable and 100% committed to you and your investment. The people in Daybreak displayed all of those qualities to me.”

The Right Partner Choosing the right symbol group partner for what was a large redevelopment was crucial for Les. The ageing structure of the previous shop had to be demolished. The old store had doubled as the local post office and Les was keen to keep a sense of continuity, hence the fact that he has retained Bill Pay facilities and stamp sales in the new shop, with a post box on the path in front of the store. When it came time to design the interior of the shop, Daybreak again stepped up to the mark for Les. “Thomas Morrison [Regional Business Development Manager, Daybreak] was very closely involved in the design process. To be honest, I got a tremendous amount of support from the Group,” he enthuses. “Daybreak’s expertise was exactly what I needed to create the type of modern, convenient, high-spec package, delivering quality products and essential services, that I believed the town needed.”

Definite Vision Les had a very definite vision for what the new Daybreak store should be: “I wanted a modern look with a local focus. I

grew up in this town. I’m employing local staff. I try to put as many locally produced products as possible on the shelves and I’m looking to serve local needs. The nearest shops to here are in Balbriggan and people would prefer to avoid that trip if possible. With the amount of development that has gone on in the area, I knew the time was right for this project and together with Daybreak, we have delivered exactly the type of shop the area needs.” Trade is going very well in the totally revamped store, where a quality hot and cold deli, Café Vergnano coffee and variety of top brand wines targeting high-end convenience customers. Demolishing the structure of the old shop allowed Les to significantly increase the floor-space in the new shop, so there is also a strong grocery offering available. The shelves offer a variety of locally produced fresh fruit and vegetables, with total traceability – as Les explains: “Locally produced products are very important to my customers, who are very discerning. For example, we have two local potato producers supplying us. In terms of making this shop a success, the presence of locally produced goods on the shelf is as important as the immaculate image, the pristine deli and superior customer service from our well-trained staff.”

Hero Categories The deli was brand new to the village but it took off very quickly. One of Daybreak’s ‘hero’ categories, it has proved a shrewd investment, and the recent Daybreak Deli promotion, offering customers the chance to win a trip to New York, and an iPod nano to be won in every store, proved particularly popular. Wine sales were also new to Les’ store and have started strongly. As another of Daybreak’s ‘hero’ categories, wine sales are also supported by strong national promotional campaigns and special offers. Les Reilly is extremely happy with his new store, and his investment is already paying off, as is his partnership with the Daybreak group. “I would like to thank everyone from Daybreak that has helped make this development such a success,” he concludes. “I want to thank my staff, my customers and all the well-wishers who have watched this change in the village with interest.” Les and the Daybreak Group have invested much time and effort in the site in The Naul. The investment has paid dividends, not just for them but for the local people of the area. With the continFA C T F I L E ued dedication and professionalism of Owner: Les Reilly the owner and Location: The Naul, Co Dublin the Daybreak Size: 1,100 square feet Team, it looks Number of like the area Staff: 8, full time & part time will be well Opening served for a long hours: 07:30 – 21:00 Mon – Fri time to come. 08:00 – 20:00 Sat & Sun

RN September07Shop Profile ●

Daybreak Shines in The Naul Les Reilly has transformed his Daybreak store in The Naul, Co. Dublin, into a one-stop shop for residents and passing trade.

Les

Pictured are Anthony Nolan, Daybreak Territory Manager, store owner Les Reilly, and Colm Dolan, Daybreak Symbol Project Manager. 18

RN September07Shop Profile ●

sure they are professional, capable, knowledgeable and 100% committed to you and your investment. The people in Daybreak displayed all of those qualities to me.”

Definite Vision Les had a very definite vision for what the new Daybreak store should be: “I wanted a modern look with a local focus. I

RN September07Retail News Interview ●

To the Fore of Irish Retail Garages might have declined from 2,500 in number a decade ago to around 1,200 today, but they have never been stronger. RETAIL NEWS talks to Frank Gleeson of Topaz Energy, the firm that owns Statoil and Shell, about why forecourt owners no longer refer to themselves as fuel operators, but as retailers.

Stopping

and shopping at forecourts will never be the same again. While smaller service stations are diminishing, bigger stores with vastly improved facilities are opening. Much like the experience of the convenience sector - where ‘ma and pa’ stores consolidated into symbol

shops - the old garages and kiosks are going out of business to be replaced by larger service stations. By way of example, Topaz Energy and Dublin Port Company are set to open Ireland’s largest service station next year. The station, located near the entrance to the Dublin Port

Tunnel, will encompass 4.5 acres and include parking for 43 trucks, a truckers’ lounge and a full restaurant. “We are very excited about this,” says Frank Gleeson, Retail Director of Topaz Energy Limited. “It is going to be the biggest site in Ireland. How did it come about? There was an absolute need for it. The reality is, we have an entry port that doesn’t have any fuel service station or convenience or food service. It is a one-off. You are not going to see a service station of this size everywhere, but you are going to see bigger service stations on our motorways. The NRA want to deliver 14 service stations on the motorway network over the next five years. You will also see larger sites in urban areas – probably an acre to an acre and a half in size.” Topaz Energy is heralding the way for the future. In 2005, Topaz purchased the oil product businesses of Irish Shell and Shell Northern Ireland. In 2006, it acquired Statoil Ireland. Today, Topaz has a strong company-operated network: 100 sites, of which 65 trade under the Fareplay brand. In total, there are 348 service stations in the Topaz network. Fareplay is itself recognised as one of the leading convenience forecourt groups in Ireland. As Retail Director, Frank Gleeson wears a number of hats – he has full responsibility for network development, marketing, and both Topaz’s retailcompany business and its retailerdealer business. Prior to the purchase, he worked as Vice President of Retail of Statoil.

Business Services What does Topaz offer forecourt retailers? “We have a full solution, including a dealer offer for fuel and lubricant brands. We are hoping to develop that offer further in terms of business services. We recognise that the dealer of today and the future has a higher level of service requirements. We also have a company-operated business that has been doing very well for the last five or six years and has developed a lot of expertise that we can leverage across to our dealer business.” From a convenience perspective,

RN September07Retail News Interview ●

Fareplay forecourts have flourished. Unlike many of its competitors, Fareplay is a hard working model that calculates sales per square foot in order to control costs and maximise profits. “You could be blinded by large sales, but the reality is that unless you are making good profit per square foot, then you are not really in the game,” notes Frank. The proof is in the pudding: Fareplay stores are extremely profitable on both a square foot and a site-to-site basis.

The Changing Face of Forecourt Irish forecourt offerings have changed dramatically. Ten years ago it was unusual to find a full-blown convenience store on a forecourt. Now it is practically impossible to find a forecourt without one. In 2007, consumers purchase ‘food-to-go’ alongside all the usual food and drink categories, and there are even off-licences on site. When the Statoil hierarchy first envisaged Fareplay, they were breaking new ground in terms of selling sandwiches, coffee and hotdogs. Now Irish forecourts offer everything from home meals to smoothies to wine. “The deli counter has been a strong driver – a double-digit growth area,” continues Frank. “We have a lot products that are capped in margin, like call cards and tobacco, newspapers and magazines. But with food, you can find margins of 50% or 60%, so it is a more attractive category. Food customers also return for repeat purchases.” And is it true that

“The NRA want to deliver 14 service stations on the motorway network over the next five years. You will also see larger sites in urban areas – probably an acre to an acre and a half in size.”

Mick Flynn, currently Topaz’s senior be in the short-term game. We would commercial manager, single-handedrather charge fair pricing and make ly invented the Breakfast Roll in the a fair profit, leading to long-term early 1990s, when Statoil entered the sustainability.” Irish market? Frank laughs: “I was working with Mick at the time and The Future we were developing the Fareplay Frank is optimistic about Topaz’s brand. Mick was working with the chances against new supermarket product development team as shop competition. Tesco have been in the development manager. He did come market four years, but only have up with that product and when we nine service stations across Ireland – put it out there, people liked it. The a far smaller market penetration Breakfast Roll has become a “You will see less than 1,000 service phenomenal product: food-to-go, stations across Ireland and further breakfast to go etc., is consolidation. Those service stations now a way of life.” will be full service - high quality Furthermore, the very fuel, good technology, excellent nature of forecourt retail makes it conducive to good facilities, great convenience, and business. These outlets have other services that are good parking - something that convenient for customers.” high street conveniences stores do not have - and a customer base that is arriving to purchase fuel. Is it any wonder why symbol groups are so than the UK. The reality is that the interested in the forecourt channel? convenience channel in Ireland is strong and is an entirely different proposal to the supermarket busiFuel Purchasing Patterns ness, he says: “We compete very well Frank Gleeson is not swayed by conagainst everybody in our channel.” cerns that rising oil prices will What is in store for the future of adversely affect forecourt trade Irish forecourts? “You will see less because consumption is increasing, than 1,000 service stations across as is new car ownership. Ireland and further consolidation,” Nevertheless, fuel-purchasing patsays Frank. “Those service stations terns are changing. People might be will be full service - high quality fuel, purchasing more, but they do so in good technology, excellent facilities, fewer quantities. The average fill is great convenience, and other services 30 litres, while the average tank is that are convenient for customers. around 50. There will also be destination busiWhat about the independent nesses like carwashes. You will see operators that charge huge prices per them operated to a very high stanlitre under the Statoil banner. Surely dard. Everybody in the game will be this can give the entire brand a bad linked to a strong brand. We will name? “It can do, but the customers offer a strong, consolidated channel are very clued in,” asserts Frank. and we will continue to innovate “The reality is - and we are very clear Fareplay.” on our position - we do not control In garages across the nation, conthe independents’ prices because we venience food and drink purchases can’t. It’s up to the individual operahave become as important as fuel, he tor to charge whatever he wants. concludes: “In the food channel, we Where we do control our prices - in compete against the quick serve our company-operated stations - we restaurants. We compete in the conare price competitive and we are convenience channel against the convenscious that there is a balance ience shops and symbol stores, as between making a profit and profiwell as being a fuel business. We teering. We all have to make profit, have become a roadside utility to satbut the reality is that if you insult isfy people’s convenience needs.” your customers then you are going to 21

RN September07Money Matters ●

Succession Planning Carmel Linnane advises on how to plan for handing over the reins of your business to the next generation. “Family-owned firms account for up to 90% of the indigenous business sector and 50% of employment in Ireland… Unfortunately, it is expected that less than one in three of these businesses will survive the transition to the second generation.”

Businesses

in the retail sector are often family owned. In fact, it is estimated that familyowned firms account for up to 90% of the indigenous business sector and 50% of employment in Ireland. Most of these businesses have been laboriously built up from nothing by hard graft, long hours and calculated risk taking. Unfortunately, it is expected that less than one in three of these businesses will survive the transition to the second generation. In the past, the notion of primogeniture meant the eldest son took over the reins, whether he had the ability or aptitude for the task or not. This often led to ruin and nowadays, while nepotism still exists, many have come to realise that it is necessary to look to take steps to ensure the survival of the company, even if it means looking for successors outside the family.

Planning The high failure rate of businesses is often put down to lack of early planning. A crisis meeting around a hospital bed is the nearest some families come to dealing with who takes over the business now that the owner is no longer capable. The result is weighted heavily against success.

Inexorably, the time will come when the business owner faces the challenge of handing over his or her business. With family run businesses, the problem of finding a suitable successor can be particularly difficult. That is why the management of succession is becoming more and more common, regardless of size. It is particularly important when there is more than one potential successor. And the larger the spoils, the more heated the contention as to who should take over the business.

Selection To avert such contention, an overall succession management strategy should be undertaken as early as possible. Not only do you need to decide how best to deal with share transference, capital acquisitions tax, capital gains tax, business valuation, transfer of goodwill and maintaining relationships with suppliers and customers, but in the family-run business, you also need to deal with degrees of family involvement. This is where you may need the services of more than just your accountant. A number of advisory services have evolved over the last decade to tackle this delicate area.

Waste Management Solutions

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RN September07Money Matters ●

List In the case of the family business, your first step is to make a list of family members, identifying whatever skills, interest and aptitude they have for the running of your business. Weed out the disaffected. In the interests of those who do show interest in running the business, make sure they do not end up carrying a load of dead weight just because it is the family business. Many businesses are dragged down by having to support too many unmotivated, or simply less capable, siblings. This is unfair to those who are trying to make a go of it and has a de-motivating impact overall.

Constitution A family constitution is a very useful tool. This should be a comprehensive document that will act as a framework for family involvement in the business. Family issues, commercial concerns, legal and tax implications, will all be addressed. To save later wrangling, the process should involve the entire family in discussing the desired outcomes and the best means to achieve them. Early planning and communication is key to consensus and the succession plan must be flexible to adapt to changes in the business and to the different individuals’ needs and wants. The family constitution is not unlike an elaborate shareholders agreement. A list of principles is laid down and these are binding to all family members regarding the rules for owning and distributing shares. It will also tackle criteria for the second generation who want to join the business and should be extended to include non-family members. Establish rules for entry into the business. The entrants must have the required experience, necessary qualifications and acceptance that employment in the business, just because you are family, is not an automatic right. Set up guidelines for possible employment of family members’ spouses and partners. Recognise the reality of separation and divorce and their possible implications for the business. Confine control to those family members working in the business by the cre-

ation of voting and non-voting shares/preference shares, with different rights. This may involve the need for a dividend strategy.

Share Transfers Establish detailed procedures for valuations in the case of share transfers. Consider the procedures for Board appointments. In family succession programmes, the appointment of an independent, non-executive director can be very helpful. Finally, the implementation of the succession policy will be put in place by necessary amendments to the company’s Articles of Association and completion of a Shareholders Agreement. This is not written in stone and must be continually reviewed and amended to remain relevant. This should all be done over as long a period as possible to ensure all issues are sufficiently dealt with. For example, the Caulfield family, who own a chain of SuperValu supermarkets, planned their succession route for over 10 years. This culminated in a family constitution and a management buy-out. Three brothers and a brother-in-law founded the company back in the 1970s. From the 1990s until a couple of years ago, the succession plan was hammered out. Three second generation members of

“Many businesses are dragged down by having to support too many unmotivated, or simply less capable, siblings. This is unfair to those who are trying to make a go of it and has a de-motivating impact overall.”

the management team, two family and one non-family member, undertook the MBO. With the aid of outside expertise and the appointment of non-executive directors, a family constitution was set up. This detailed document set out the rules of engagement when it came to entry and exit from the family business going forward.

Alternatives In some situations, there are no obvious choices within the family or the offspring may still be too young to take over when the owner wants to retire. This may require getting a suitable, non-family manager in to run the show in the interim. It is possible to have a family own the company but employ others to manage it long term. The business can succeed to the next generation but a family member might not manage it. In some situations, this may be the optimum route. Delegation can be the key.

Succession Setting out the procedures necessary to achieve a seamless transfer of ownership and control of a family business requires leadership, patient determination and diplomacy. It is a worthwhile project and while its completion may not provide a panacea for all subsequent problems, it may provide solutions to many issues as they arise. In the case of larger family circles, setting up a clear-cut family constitution can save a lot of acrimony and dissention. Many businesses invest a lot of time and money in developing strategies but some greatly oversimplify their approach to succession management. Succession planning is a process where familiarisation and experience over time allow ownership and direction to pass successfully from one generation to the next. There are times when no successor, either family or non-family, can be identified. In that case, it may be necessary to plan for the orderly disposal of the business to permit distribution of the assets. None of these decisions are easy but the sooner you tackle them, the more likely you are to come up with the best solution.

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RN September07Fuels ●

The Heat Is On! The season for stocking up on home heating fuels is upon us, with a variety of gas and solid fuel options available.

The

market for fuel products sold through retail stores continues to grow, and not just because of the weather. More and more consumers are purchasing products like outdoor patio heaters, pot-bellied stoves and, of course, barbeques, which means a corresponding rise in the use of either LP gas or solid fuel sales. The poor weather, however, also has an impact on fuel sales, with many consumers turning to mobile heating solutions to provide that ‘instant fix’ in a single room without having to heat an entire house. We examine the products that are shaking up the home heating/fuels sector, with attendant profit opportunities for retailers.

GAS FUELS Flogas Flogas, the Drogheda-based LP Gas company, is one of Ireland’s largest suppliers of bottled gas, which it markets via a nationwide network of dealers. 2006 and 2007 were very good years for Superser heater sales and the main driver was the rising costs of oil, 26

A family enjoying some quality time in a kitchen warmed by a Flogas Catalytic Superser heater.

natural gas and electricity. This year’s bad summer helped to maintain a steady demand for gas, as many people still needed a heat boost in the unseasonable wet weather. Said Dermot Murphy of Murphy’s SuperValu in Castletownbere, “Superser heaters from Flogas continue to be extremely useful as an instant, economic and portable way to ‘spot-heat’ a room quickly, as many customers find it far cheaper than turning on the central heating for an hour or two.” Feedback from a wide

range of Flogas dealers highlighted that this trend covers both urban and rural areas. For home owners who want instant heat that’s both stylish and useful, Flogas supplies two very contemporary looking and stylish mobile heaters, the Superser Radiant and Superser Catalytic. In particular, the Superser Catalytic burns without a flame and has lower touch temperatures, and it’s fitted with easy glide castors, which allows for trouble-free moving from room to room.

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RN September07Fuels ●

A tasty stir-fry being prepared using Flogas bottled gas.

The demand for accessible and affordable gas in the leisure market has risen sharply, particularly for the use of barbeques and patio gas heaters in the summer months. In addition, any outdoor activity planned for this year’s summer meant that gas heaters became a necessity rather than an option. Flogas Patio Gas is available in key dealer locations around the country and even with the poor weather in June and July, outlets like Arro Home and Garden in Athboy maintained sales over the summer. Said owner Tim Lodge, “The smoking ban definitely extends the season for eating outdoors as smoking in many homes has ceased and rather than split the group, every-

one can sit outside and the patio heater keeps temperatures up. We have also benefited from demand from pubs and hotels in Athboy who require gas for their outdoor areas.” Commenting on 2007 trends, Flogas marketing executive Eoin O’Flynn said “This year’s poor summer meant that demand for bottled gas for Supersers remained steady, while patio gas sales were not as strong. However, we have been promised an Indian summer by the Met Office and if that prediction holds true, sales for patio gas will probably surge as everyone tries to make the most of any outdoor activity before the onset of winter.” Said John Sheils’ of Sheils Londis in Malahide, “Patio gas sales are usually what we call a ‘stress purchase’, the weather suddenly turns good, customer decides to have a barbeque, invites all the friends over then realises he’s no gas. Having Sunday opening hours is a great way to capitalise on this demand.” Coal effect gas fires have become a very fashionable lifestyle

choice for a number of home owners. The solution for those home owners who are not on the natural gas grid is to have it piped in from their own back garden using stand-alone propane cylinders. Two are usually installed, with an automatic changeover device so when one cylinder runs out, the customer can phone for a replacement cylinder. Flogas operates a nationwide network of distributors in strategic locations to ensure constant and speedy deliveries direct to customers, whatever the weather. Propane direct dealers have been reporting strong annual sales growth and Martin Forde of Forde’s Gas in Oranmore said “Many of our customers want the benefits of gas in the home for fires and cooking but are either not on the natural gas grid or don’t want to go through the hassle of changing, so having propane cylinders in a discreet corner of their back garden a very practical alternative.” As the population around major urban centres continues to spread into surrounding counties, so too has the growth of restaurants and other eateries all looking for gas, the cooking choice for professional chefs, driving sales of propane cylinders. Propane Direct dealers like John Connolly of James Lyons HomeValue in Bantry and Michael Scully of Navan Gas have seen a huge growth in the preference for the use of gas for professional and domestic cooking. Said Michael Scully, “Natural gas is now in Navan but parts of the town are still off the main pipeline and so, the practical alternative is Flogas propane cylinders. Also, changes in eating habits and the trend towards stir-fry dishes which work best when cooked on gas has meant that many people are looking at this option either for existing or new homes.” A nationwide network of Flogas aftersales personnel are on 24-hour call for appliance repairs and maintenance. Flogas supports all its products and services and plans through innovative dealer promotions, excellent point of sale material, targeted advertising and public relations.

Calor Gas

The Flogas Cylinder Range. 28

With the summer season drawing to a close, Calor BBQs will be going into hibernation for the next six months,

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1850 812450.

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Enjoy a Calorful life

RN September07Fuels ●

With its attractive warming living flame effect, Calor’s Provence Stove Living Flame is the perfect living room, kitchen and conservatory heater.

but there are plenty more Calor LPG appliances out there which will be burning Calor LPG over the autumn/winter period, including mobile heaters, gas fires, cookers, patio heaters and air conditioning units. As always, mobile heaters will be popular during the cold months, offering spot heating for homes and offices. Calor have a broad range of heaters available this winter, ranging from the traditional to the fantastic Provence. With its attractive warming living flame effect, the Provence Stove Living Flame is the perfect living room, kitchen and conservatory heater, providing a perfect focal point for any

room. It’s also good for the environment, allowing consumers to spot-heat just one room. The Provence also features a flame failure and oxygen depletion system cut off which shuts the product off if carbon dioxide levels in the room rise above 1.5%. Calor gas fires continue to be very attractive, given their energy efficiency, heat productivity and environmental friendliness. There is a huge selection of brands and models available, from traditional coal effect fires to new stylish glass-fronted fires. Gas stoves are also widely available in new ultramodern designs. Similarly, the Calor range of cookers combines the latest technology with the very best modern design, good looks and beautiful colour options, to complement any kitchen design.

cooling requirements: there are now air conditioning systems which can run on Calor. These systems, which are specifically for commercial and retail premises, offer a high standard of comfort for both customers and staff, and are both cost effective and energy efficient. Calor’s continuous development within new and existing markets puts the company at the forefront of the cylinder gas market and reinforces the company’s commitment to supplying convenient, safe and quality products. All yellow Calor Gas cylinders are fitted with the ‘Calor Guard’, a unique tamper-evident seal. This is a guarantee of a quality Calor product and is an essential part of ensuring customer safety. Calor have and benefit from a great dealer network countrywide, which helps them maintain their position as one of Irelands leading energy suppliers.

SOLID FUELS Bord na Móna Bord na Móna Ltd is the leading branded marketer and largest supplier of solid fuel products on the Irish market. Bord na Móna Ltd continues to lead the way in developing convenience products to meet the demands of today’s time-poor consumer. The com-

All yellow Calor Gas cylinders are fitted with the ‘Calor Guard’, a unique tamper-evident seal.

As always, mobile heaters will be popular during the cold months, including the popular Superser from Calor.

As well as mobile patio heaters, Calor can now offer outdoor heaters which are secured to the ground, wall or overhead. There are also different styles available, from the standard lantern effect heater to the tube and plaque wall mounted heaters and are suitable for everywhere from simple patio areas to more elaborate beer gardens. A relatively new development for Calor in terms of commercial and industrial applications, is the ‘cooling’ end of the market for Calor LP Gas. Calor can now meet both heating and

The Firepak from Bord na Móna offers a clean, convenient and innovative solution to consumers demanding an instant real fire.

The Instant Winter Fuel Range from

Full range range of of convenience convenience fuel fuel products products Full Handy Handy Bale Bale now now available available through through our our distribution partners partners Allegro Allegro distribution

Clean and and convenient convenient to to use use Clean National Advertising Advertising and and PR PR campaign campaign National Free Free merchandising merchandising Units Units available available

RN September07Fuels ●

also manufactures and sells top quality Firelighters under the Bord na Móna brand. Available in two pack sizes 30’s and 60’s - Bord na Móna Ltd Firelighters continue to outperform their competitors due to the inclusion of high quality Peat which is harvested by Bord na Móna Ltd.

the Ecoflame Wood Briquette is set to continue to grow its market share, helping Ireland to meet its requirements under the Kyoto Protocol, and allowing retailers the option of giving customers an environmentally friendly option for heating their home.

Homestead Stafford Fuels

A convenient, easy to carry product, the ‘Handy Bale’ contains 10 Bord na Móna Ltd peat briquettes.

Stafford Fuels launched the Ecoflame range of environmentally friendly fuels towards the end of 2006. The first product in the range was the Ecoflame Wood Briquette, an easy to light environmentally friendly fuel, which soon became the number one environmentally friendly briquette on

pany continues to invest in extensive marketing communications campaigns to support their products, including eye-catching merchandising units for easy display in-store and innovative advertising and communications campaigns to bolster awareness of the Bord na Móna Ltd range of products. The well established Firepak and Firelogs are consistently best-sellers and are the number one convenience fuel products on the Irish market. A clean, convenient and innovative solution to consumers demanding an instant real fire, Firelogs and Firepaks are essential for all retailers to stock. With handy display dumpers, retailers have the convenience of easily merchandising the entire range all year round. Bord na Móna Ltd lead the market in new product development and have introduced the ‘Handy Bale’, made from Irish Peat. A convenient, easy to The Ecoflame Wood Briquette, from carry product, the ‘Handy Bale’ conStafford Fuels, is an easy to light tains 10 Bord na Móna Ltd peat brienvironmentally friendly fuel, which is set to continue to grow its market share. quettes. This on-shelf product is clean and conveniently wrapped and offers the consumer a real home fire in an the market, according to Stafford easy to carry pack. Fuels, tapping into consumers’ increasBesides being one of the largest ing environmental awareness. suppliers of private label Firelighters With a full range of PoS available on the Irish market, Bord na Móna Ltd and distribution available nationwide,

Bord na Móna Firelog is a consistent best seller in stores nationwide. 32

After the launch of the Homestead brand in 1986, the firelighter range quickly became a stable product within the brand’s portfolio, generating considerable sales in this category. As a result, Homestead enjoys the largest market share of the firelighters business for a private label within the independent sector, while rivalling the two leading brands in Ireland. Over 70% of households have open fires and the ignition sector is one of the fastest growing sectors in the household category.

Homestead’s firelighter and Firelog range, one of the top sellers in the brand’s portfolio.

The Homestead fuels range consists of two SKUs of firelighters, 30’s and 60’s, while a 1.1kg Fire Log was introduced to the range in early 2005. Time poor consumers are a growing contributor to the convenience purchase and Homestead ignition products are benefiting from this shift in purchasing, seeing 30% growth year on year in this category. Group Retail Co-ordinator for Stonehouse Ltd, Janice Gibney noted, “The continued performance of the Homestead brand in such a competitive market is a phenomenal result and gives a true insight into the core foundation of the brand’s existence, to bring value home.”

Sweet Success At SHOP 2007 The recent SHOP 2007 event has been heralded as a tremendous success.

estimated 5,000 buyers and decision makers flocked to the RDS for the three days of SHOP, Ireland’s biggest food and drink exhibition, which took place from September 2-4. Showcasing innovation and enterprise in the food and drink sector is one of the focal points of the exhibition, and this year’s menu of seminars was the most appetising yet. Designed for those in the Retail, Food and Drink sector to develop new business, launch new products, network and gather the best advice in the industry, SHOP welcomed 5,000 focused buyers and decision-makers, including buyers from the multiples and symbol groups, forecourt owners, independent retailers, wholesalers and deli owners.

Product Of The Show Award Mileeven Fine Foods was announced as the overall winner of the prestigious Product of the Show Award for its Milleeven Honey Spreads. “Adding innovation and value to such a traditional product as honey was one of the clear reasons this product won the award,” noted Dermot O’Connell from Musgrave, Chairman of the judging panel. “The additional twist of it being organic, its spreadability and the exciting flavours such as walnuts, cinnamon and ginger, were simply the icing on the cake of a fantastic product!” Milleevan Fine Foods is a member of Ireland’s County & City Enterprise Boards, which have issued grant pay34

Pictured are (l-r): John O’Brien, Consultant (judge); Margaret Donnelly, Irish Food Magazine (judge); Linda Widget from Mileeven Fine Foods (Overall Winner of the Innovation Award); Garret Buckley, Expo-Events; Keith Ball, Soil Association (judge); Dermot O’Connell, Musgrave (Chairman of the Judging Panel); and Fiona Walsh, Musgrave Wholesale Services (judge).

ments to over €10.6m to the microenterprise sector in 2006. An entire section of SHOP was dedicated to the CEB’s this year which saw them fill a massive 270 square metres of exhibition space to display products from over 50 companies.

International Cheese Awards Other winners at SHOP included those taking prizes at the International Cheese Awards and the National Coffee Cup Tasting Championship. Friesland Foods with their Frico Cheurette Mature were crowned Supreme Champions at The International Cheese Awards, Ireland’s most prestigious cheese prize. The awards reflect the extraor-

dinary diversity and quality that prevails in the cheese industry today and offers entrants the opportunity to win one of the most prestigious awards.

National Coffee Cup Tasting Championship Acknowledging the hugely popular and increasingly sophisticated coffee culture in Ireland, the Irish chapter of the Speciality Coffee Association of Europe staged its National Coffee Cup Tasting Championship, challenging the taste-buds of coffee lovers and experts alike throughout the country. The winner was announced as Stephen Morrissey, formerly of Bewleys. Stephen’s next venture will see him open up a chain of coffee shops with the current Barista Champion James Hoffman.

National Organic Awards Bord Bia, in conjunction with the Department of Agriculture and Food, announced Ireland’s first National Organic Award winners at SHOP. The inaugural awards, which attracted over 70 entries, recognise the achievements of Irish organic producers. The Best Overall Organic Product for 2007 was Pictured are two of the judges of this years Cheese awarded to St Tola Organic for Kids Award in the International Cheese Awards (l to r): Sarah Whalley and Hannah Goat’s Log from Inagh Buckley Farmhouse Cheese, Co organic producers to demonstrate the Clare. broad range and high quality of prodIndividual category winners includucts available. Organic food is one of ed Best Organic Sweet, Flour and the fastest growing segments of the Chocolate Confectionery – Katie’s European food market and has a Organic Oat Jumblies (biscuits) from growth rate of 15-20% in Ireland. Bord Cisti Gugan Barra, Co. Cork; Best Bia will continue to work with and Organic Chilled/Frozen Product – St support the organic sector with signifiTola Organic Goat’s Log from Inagh cant optimism towards its further Farmhouse Cheese, Co. Clare; Best development in Ireland.” Organic Grocery Product – Earl Grey Dermot O’Connell, Chairman of the Tea from Solaris Herbs, Co. Galway. judging panel for the Organic Awards, “We are delighted with the high was extremely impressed with the conlevel and standard of entries to Bord sumer focus amongst producers, as Bia’s inaugural National Organic demonstrated by the range and quality Awards 2007,” noted Aidan Cotter, of products entered in each category. “I Chief Executive, Bord Bia. “These look forward with interest to future awards will further enhance trade and competition, innovation and ingenuity consumer awareness of Irish organic within this vibrant sector,” he stated. capabilities and create a platform for

Award Winners BEST GROCERY Winner: Kinsale Distribution Doves Farm Fairtrade Organic Cereal Highly Commended Delicious Gourmet, Gluten Free, Wheat Free Brownie Best Overseas Winner: Step Lift – Powered Gemini Highly Commended Clan Distribution – Flax Seed Omega 3 BEST IRISH PRODUCT Winner: Burren Smokehouse – Honey, Lemon & Pepper Hot Smoked Organic Salmon Highly Commended: Taravale Foods – Roots & Shoots Potato Skins Commended: Irwins Bakery Guinness Wholegrain Bread BEST CHILLED/FROZEN Winner: Taravale Foods – Roots & Shoots Loaded Potatoes Highly Commended: JM Foods Individual Quiche Commended: Fresh2Cook – White Wine BEST CONFECTIONERY Winner: Kinsale Distribution Divine Fair Trade, Fruit n Nut Chocolate. Commended: Irwins Bakery – Rankin Selection “New” Cake Range BEST RETAIL TECHNOLOGY Winner: Original Video UK – Fully Automated DVD Rental Machine BEST BEVERAGE Winner: Teahouse Ireland Matchabar – Samba Mate Highly Commended: Orgapod Spiced Rooibos Chai Nafisa Commended: Innocent Drinks – Take Home Smoothies BEST EQUIPMENT Winner: Martin Food Equipment – Turbo Chef Highly Commended: Step Lift – Power Gemini BEST OVERALL INNOVATION Winner: Mileeven Fine Foods – Mileeven Honey Spreads

Miss Ireland Blaithnaid McKenna is pictured with Garret Buckley, joint Managing director of Expo Events and Joe Smith, Board member of the Irish Chapter of the Speciality Coffee Association of Europe, sampling some of the fare before the National Coffee Cup Tasting Championship at SHOP 2007.

ORGANIC AWARDS Chilled/Frozen: Inagh Farmhouse Cheese – St Tola Log Organic Grocery: Solaris Herbs – Tea Range Organic Sweet, Flour & Chocolate: Cisti Gugan Barra – Katie’s Organic Oat Jumblie Overall Winner: Inagh Farmhouse Cheese, St Tola Log

RN September07Oat Cereals ●

Oat For Change Irish consumers are increasingly voting for oatbased cereals, with their wellpublicised health benefits, as the healthier way to start the day. Manufacturers are responding, with a wealth of convenient, oatbased products fuelling market growth.

The

hot cereal sector is enjoying a period of significant growth within the breakfast category, with industry experts predicting growth rates of up to 20% per annum. The reasons for this are two-fold: on one hand, consumers are increasingly becoming aware of the health benefits of oat cereals, while simultaneously, manufacturers are producing oat cereal products that fill consumers’ need for convenience. Oats are now considered a ‘superfood’, whose nutritional qualities may contribute to a healthier life. With 36

Flahavan’s Progress Oatlets, Microwaveable Quick Oats and Organic Oats are firm favourites with Irish consumers.

more and more consumers making the link between diet and good health, the prospects for continued growth in the category are bright. While the “traditional” sector of oatflakes and pinhead oatmeal still accounts for the lion’s share of the market, new convenient products with reduced preparation times are fuelling category growth.

Flahavan’s Flahavan’s product portfolio continues to grow at the forefront of the hot cereals market, driven by health and convenience. Claiming market share of nearly 60%, Flahavan’s Progress Oatlets, Microwaveable Quick Oats and Organic ranges are firm favourites with Irish consumers. Free from artificial colours and additives and made from 100% wholegrain oats, the intrinsic health benefits of Flahavan’s Progress Oats and the quick and easy-to-prepare Quick Oats range in a sachet, drum and portable pots make Flahavan’s porridge the ideal breakfast or snack, anytime or anywhere, at home or in the office. In response to changing consumer lifestyles and tastes, Flahavan’s launched its award-winning, highly successful organic range -Organic Porridge Oats and Organic Jumbo Oats, a larger thicker oat flake, ideal-

ly suited for making porridge with extra bite. Flahavan’s long heritage of oat milling is reflected in the packaging of the new range, which has a distinctive retro feel derived from an original Flahavan’s design from the 1940s and is made using recycled paper. Flahavan’s Organic Oatflake range is certified by the Organic Trust Limited. These new products have a strong appeal to consumers who care about their diet and appreciate the positive nutritional value of porridge. Innovation driven by consumer insight and research is core to Flahavan’s new product development. The distinctive Flahavan’s taste, quality and new format varieties combine to make Flahavan’s Oats the number one brand that consumers can trust.

Odlums As the hot oats cereal category continues to enjoy significant levels of growth, Odlums remain one of the major players within this market. With over 160 years milling experience, Odlums is one of the oldest and most loved Irish brands and continues to be the first choice for many consumers. Strengthening their product portfolio, Odlums have introduced more additions to their oat cereal range.

RN September07Oat Cereals ●

Oatflakes and new Jumbo from Weetabix are tempting and Organic Oatflakes are indulgent cereal bars with a burst of fully certified by the flavour, available in three delicious Organic Trust. Appealing flavours: Sassy Strawberry, Lively to the health conscious Lemon and Nutty Chocolate. Groove consumer, these products bars are a unique snack, featuring a offer a pure, healthy and groove down the length of the bar, natural breakfast each filled with praline, strawberry or morning. The packaging lemon, and topped with a creamy has a distinctive, natural yogurt flavour topping or chocolate. look, giving strong onA combination of rice, oats and shelf stand out. wheat, with an added groove of ‘Smooth and Creamy’ flavour, Alpen Groove bars are availmeets growing consumer able at an RRP of €4.29 for a box of demand for great tasting, six or individually at 84c each. healthy Available in 1.5kg packs, Odlums Organic Oatflakes and conand new Jumbo Organic Oatflakes are fully venient certified by the Organic Trust. breakfast options. This new prodMade from delicious wholegrain uct offers the conoats, Odlums new Vita Grain Oat sumer 10 pre-measBars contain all the goodness of one ured sachets of delibowl of porridge. Designed for modern cious Odlums oats that living, Vita Grain will appeal to the microwave in just 90 health conscious consumer who seeks seconds. Containing a nutritious snack on-the-go. Unlike 100% wholegrain oats, most snack bars, this product benefits with no artificial from Beta-Glucan, part of the soluble colours or preservafibre in oats, which can contribute to tives, this product will lowering cholesterol levels and help greatly appeal to those maintain heart health. These bars are consumers who are also very low in calories, sugar and New Alpen Groove bars come in three delicious aware of the beneficial saturated fat. Vita Grain is available flavours: Sassy Strawberry, Lively Lemon and Nutty properties of porridge but in two flavours – Honey & Raspberry Chocolate. who do not – in packs of 6x35g. To promote the always have the benefits of Vita Grain, a nationwide time to prepare sampling campaign is planned later Jordans Cereals & Cereal Bars breakfast. this year. JORDANS Cereals & Cereal Bars, made using only natural Within the hot oats category, ingredients with no artificial flavourings, colourings or organic products are growing strongly Weetabix preservatives, are experiencing great growth since their at 30%+ per annum. Available in move to smaller case sizes last year. Jordans products are New Alpen 1.5kg packs, Odlums Organic now available in cases of 6’s and 8’s and this has meant a Groove bars better performance for the brand in smaller accounts. The new look packaging and some recipe improvements have also seen new consumers switch to the Jordans Brand. Jordans Special Muesli has now joined Raisin & Almond and Tropical Crunchy among the best sellers in the range. Cereal Bars are enjoying growth of 30% this year with the new Superfoods bar performing very well. Jordans Cereals have more NPD planned for 2008, together with strong Jordans Special Muesli has joined Raisin & trade and consumer offers. Almond and Tropical Jordans Cereals and Cereal Bars Odlums’ new Vita Grain Oat Bars benefit from Crunchy among the best Beta-Glucan, part of the soluble fibre in oats, and are distributed by Kelkin Ltd. come in two flavours – Honey & Raspberry.

sellers in the range.

RN September07Confectionery ●

Sweet Release Irish consumers have long been renowned for their sweet tooth, with recent research confirming that Irish consumers eat more chocolate than any other nation in the world.

Dairy Milk’s great new ‘Prize and a Half ’ promotion, running across packs in the Cadbury Dairy Milk range, offers a range of tremendous prizes across entertainment, music and travel.

increased by an average annual rate of 3.5% between 2000 and 2005. The market includes chocolate confectionery, sugar confectionery, gum and cereal bars. Ireland’s high levels of consumer spend, coupled with the benefits of low input costs and high net margins,

Ireland

has the highest per capita consumption of chocolate in the world, according to a report by Food From Britain, with every Irish person, on average, eating their way through 10.9kg of chocolate confectionery each year, more than double the amount eaten by our US counterparts. Indeed, the Irish chocolate confectionery market is estimated to be worth a whopping €544m per year. Denmark pips Ireland to the biggest consumer of sugar confectionery, with Danish consumers eating 7.6kg every year, while Irish consumers eat 3.3kg of sugar confectionery per head. Despite these massive consumption figures, the Irish confectionery market continues to grow. The market

The Natural Confectionery Company have launched a new range of lollipops in five flavours – Strawberry, Blackcurrant, Orange, Lemon and Raspberry.

makes the confectionery category particularly attractive to retailers. It is estimated that confectionery generally accounts for 10% of overall turnover in a regular convenience outlet, rising to 15% in some cases.

Cadbury Cadbury Dairy Milk is still the number one total confectionery brand in Ireland for 2007. The brand is worth a massive €54m at RSP, and is growing at a faster rate than the market. Variety and taste are key to the success of Cadbury Dairy Milk. Offering nine recipes, a full glass and a half of fresh Irish milk is added to every 250g family bar of Dairy Milk chocolate. Linked to the theme of ‘one and a half’ glasses of fresh milk, a great new ‘Prize and a Half’ promotion kicks off in the coming weeks, running across packs in the Cadbury Dairy Milk range. Prizes cover entertainment, music and travel - all with a twist – because when you win a prize with Cadbury, you get that bit extra! Like dinner for two in a steakhouse…in New York, or flamenco dancing lessons…in Barcelona! There are many opportunities to win the scores of great prizes on offer; by text on

RN September07Confectionery ●

Maltesers is the best selling bitesize brand in Ireland and is worth over €10m. The 190 calorie message has been the main focus for 2007 and the campaign has been a huge success, driving the positioning of Maltesers as the permissible light chocolate treat. Other favourites in the bite-size category include M&M’s, Mars Ireland’s flagship youth brand, which is worth over €5m, along with Minstrels and Revels. This year Snickers is enjoying sales growth of 11% YTD (Source: ACNielsen MAT July 2007). saw Minstrels further cement its association with fashion with its Bruce Willis blockbuster movie Die continued sponsorship of the popular Hard 4.0, leveraging its continued ‘My Fashionable Life’ feature in popularity with males. The sponsorImage Magazine, which showcases ship was heavily promoted with TV some of Ireland’s most stylish women, and cinema advertising, product samas well as product sampling in selectpling at preview screenings and a ed fashion outlets. heavyweight in-store promotional proA longtime favourite and perfect gramme and PR campaign. All this for lunchboxes, Milky Way was recenthas contributed to driving Snickers ly re-launched with a new recipe and sales value up 11% YTD (Source: the reassurance of no artificial ACNielsen MAT July 2007). flavours, colourings or preservatives. The Mars bar claims top spot in Also from Mars Ireland are the filled bar sector in Ireland. The Skittles and Starburst, two of the brand is consistently supported with leading sugar brands on the Irish an integrated support programme market, as well as Aqua-Drops, sugarthat includes heavyweight TV and free sweets with a unique dual action outdoor activity, comprehensive inthat delivers instant mouth freshness store promotional programmes and and lasting refreshment. key PR campaigns. Finally, the Celebrations brand is 2007 also saw the re-launch of now an integral part of Christmas and Balisto, available in three varieties: Mars Ireland Easter, both in trade and in the home. Muesli, Honey & Almond and Yoberry. Mars Ireland, manufacturer of many The re-launch was supported by a of Ireland’s most loved confectionery heavy communications programme, brands, continues to drive growth in Nestlé including TV, outdoor, press and an the competitive confectionery sector Milkybar, a firm family favourite for extensive sampling campaign. and now ranks as the number two generations, has moved to All Natural Ingredients, making it one of the only ‘all natural’ major kids chocolate brands on the market. With over 12% share of the children’s chocolate market, Milkybar is the leading white chocolate brand in Ireland and the preferred choice for parents looking for permissible treats for their kids, according to Nestlé Ireland. The move to ‘All Natural Ingredients’ in Milkybar is the latest Milky Way was recently re-launched with a new recipe and the reassurance of no example of Nestlé’s long-term focus on artificial flavours, colourings or preservatives. improving the nutritional qualities of flashed packs, in retail stores, on Today FM radio and on TV’s Tubridy Tonight. This fantastic promotion will be supported with an outdoor and TV advertising campaign, boosting the already high profile of this top brand and reminding consumers to pick up a bar of their favourite chocolate treat. The Natural Confectionery Company, Ireland’s fastest growing confectionery brand and the number one brand in the Sugar Family Bag market, is extending its boundaries beyond jellies and entering the lollipop market. Since its launch less than four years ago, this award-winning brand has achieved double-digit growth year on year and is now worth over €8m at RSP. In keeping with the growing consumer trend for healthier offerings, The Natural Confectionery Company promises no artificial colours or flavours. The lollies are aimed at parents who want to treat their children, but are concerned about giving them too many artificial ‘nasties’. The lollipops are available in five flavours – Strawberry, Blackcurrant, Orange, Lemon and Raspberry. Packed in a consumer friendly, colourful display outer they are sure to be a hit with parents and kids alike.

confectionery manufacturer in Ireland. Mars Ireland claims a 28% share of the filled bars category. Its brands, Mars, Snickers and Twix, remain best sellers, consistently featuring in the top ten best selling products of the category. In 2007, the Snickers brand was official chocolate sponsor of the new

From the No.1 sugar * confectionery brand

A new soft chew available in two great flavour combinations; Raspberry, Blackcurrant, Grapefruit flavour and Orange, Pineapple, Banana flavour

RN September07Confectionery ●

Nestlé’s Milkybar has moved to ‘All Natural Ingredients’, making it one of the only ‘all natural’ major kids chocolate brands on the market.

existing products and on launching new products that people can easily integrate into a healthier, more balanced diet.

Kraft Foods Kraft Foods have invigorated the Toblerone brand by launching a new Fruit and Nut variant. Toblerone Fruit

and Nut combines the original recipe of Swiss milk chocolate, honey and almond nougat, with succulent whole raisins. The launch comes as part of Kraft Foods’ biggest investment in the Toblerone brand for more than 10 years, with marketing support including a national TV ad, in-store sampling and strong trade promotions.

New Toblerone Fruit and Nut combines the original recipe of Swiss milk chocolate, honey and almond nougat, with succulent whole raisins.

The new packs feature purple and golden packaging, in keeping with the fruit and nut sector, but maintaining the traditional style of Toblerone. Dave McNulty, ICC Customer Director at Kraft Foods, commented, “Toblerone continues to be one of the world’s top selling chocolate brands; however, we recognise that it is important to re-vamp brands in order to excite existing customers and to attract a new market. We chose to launch a Fruit and Nut variant of Toblerone as there is a huge opportunity within the sector. It lends itself well to the Toblerone brand credentials, being trusted by consumers and high in quality, as well as having a universal appeal to all genders and age groups. “The honey and almond nougat blends perfectly with raisins, whilst maintaining the distinctive taste of Toblerone that millions of consumers have grown to love.” Retailers can maximise Toblerone Fruit and Nut display by using customised point of sale units and the brand is available in 100g and 400g tablets.

Extra Profits from Wrigley THE chewing gum segment is currently worth €44.7m in Ireland, with Wrigley’s Extra Peppermint claiming the number one position as Ireland’s best selling chewing gum. The Extra brand claims to be the number one sugar confectionery brand in Ireland and exciting innovation continues to drive growth in the category and increase sales of the highly successful Extra brand. The Wrigley Company recently introduced four New Extra Fusion sugarfree tab from Wrigley is available in two additional flavours to the Extra Bottle pack range - fruity variants - Raspberry, Blackcurrant and Grapefruit flavour and Orange, Pineapple and Banana flavour. Extra Cool Breeze, Extra Ice and Peppermint and Spearmint flavoured Extra Ice with a Liquid Burst. Blackcurrant and Grapefruit flavour and Orange, Pineapple The Bottle pack is designed to fit in all modern car drinks and Banana flavour. holders and be placed tidily on an office desk or shelf at Alexandra MacHutchon, Communications Manager at home. The pack contains a dual pouring mechanism that Wrigley, comments, “The Extra Fusion range meets our conallows consumers to dispense for personal use and share sumers’ need for new taste experiences. The new sugarfree with friends. soft chew tab has a fusion of three fruit flavours which will To build on Extra’s success, Wrigley is launching Extra excite consumers’ taste buds! The Fusion range is set to grow Fusion sugarfree tab – a unique new product combining the Extra brand and provide retailers with additional profthree flavours within a single tab for a new and exciting it opportunities and in turn provide incremental growth to fresh taste experience. Extra Fusion tab will be available the chewing gum category as a whole.” from September in two fruity variants - Raspberry,

RN September07Confectionery ●

Swizzels Matlow Ireland Swizzels Matlow have been operating in Ireland for over 35 years, and their flagship brand, Love Hearts, has been in existence for over 70 years. Over the last year, Swizzels Matlow Ireland extended the success of the Love Hearts brand with the launch of additional product types, while keeping the heritage and nostalgic appeal of the original branding. This included Love Heart Dip and Love Heart Lipstick.

money, Swizzels Matlow Ireland recognise they are ideally positioned to maximise this opportunity with a one stop shop solution for kids of all ages!

Haribo Ireland

Haribo has also been responding to the movement towards non-artificial colours by reviewing the recipes for its existing brands. Since 2006, the company has been removing artificial colours from its gums & jellies products and by the end of 2007 all of Haribo’s gums & jellies bag lines will have changed over to non-artificial colours. Haribo’s new countline - Fang Teeth - are 5c strawberry and pineapple-flavoured red and white jelly fangs, packaged in re-sealable drums containing 150 x 5c pieces. Haribo Ireland has also been supporting its key brands with a high profile TV campaign in the Republic of Ireland during 2007.

Haribo Ireland is planning to build on its success last year with the recent launch of two new lines – Haribo Lite, a fruit gum containing fewer calories, which joins its popular selection of hanging bags; and Fang Teeth - a new countline drum which is being added to their children’s novelty gums and jellies range. The company - whose best-sellers include the Starmix, Tangfastics and Kiddie’s SuperMix brands – is adding to its expanding portfolio following a 15% increase in sales in the Republic of Ireland in the year to July (Source: Haribo value sales end July 2007). Haribo Lite is a selection of fruit-flavour, fruitshaped gums which contain no artificial colours, have 30% fewer calories, 40% less sugar and less than 0.1% fat per 100g (when compared to Haribo Fantasy Mix per 100g). Packed in family-size hanging bags, which feature balloon graphics, highlighting the less than 0.1% fat, fewer calorie and less sugar claims, Haribo Lite features an exotic combination of fruit Swizzels Matlow are experts in the children’s and plant concentrates includWalkers’ Nonsuch Liquorice Toffee is confectionery market, offering a one-stop shop solution for kids of all ages. ing lemon, orange, kiwi, elder- made with real liquorice root extract and combined with only the finest quality berry and passion fruit. The ingredients, including full cream milk, bags are packaged in shelf-ready carSwizzels Matlow view themselves butter and brown sugar. tons of 12. as experts in the children’s confectionery market, and their prodShelton uct range includes Love Distributors Hearts, Double Dip, Fruity Speciality toffee maker, Walkers’ Pops, Double Lollies, Stinger Nonsuch, distributed in Ireland Bars, Refresher Chew Bars, by Shelton Distributors, has Rainbow Drops and Fun Gum announced that its Liquorice Jellies. They also produce an Toffee has been voted the numextensive range of multi bag ber one twist wrap by ‘toffaproducts including Variety Bag, holics’ across the globe. Chew Mix, Double lollie, Swizz Walkers’ Nonsuch Liquorice Kid, Lots of Lollies, Bumper Toffee is made with real Bag, and Monster Mix. liquorice root extract and comWhile the sugar confecbined with only the finest qualiNew Haribo Lite is a selection of fruit-flavour, fruittionery market in more competity ingredients, including full shaped gums which contain no artificial colours, have tive then ever, and kids demand cream milk, butter and brown 30% fewer calories, 40% less sugar and less quality, uniqueness and value for sugar. than 0.1% fat per 100g. 43

RN September07Packaging ●

Leaders of the Pack Packaging has moved from its traditional protective function to become a valuable marketing and cost-saving tool.

Good

packaging sells products. Such is the view of Hugh Stephens, Senior Specialist for Packaging at Enterprise Ireland (EI). “Good packaging can redefine a product. It can move beyond the basic function of protection into marketing, inventory management… even customer service.” Indeed, so often, packaging and product success are indelibly linked. Enterprise Ireland plays a crucial role in the continuing development of packaging. The organisation offers practical help in the form of mentoring, as well as financial assistance in the form of innovation and productivity improvement grants. EI is partnered with the UK-based Packaging Industry Research Association (PIRA), Europe’s largest body for packaging technical services, and frequently uses the Association’s expertise at seminars and workshops. PIRA representatives also travel to Ireland to assist clients. While the Irish market may not be big enough to main-

Chivers Conserve range, designed by Persona Design for retail, primarily in the Irish market.

tain a full-blown centre of excellence for print and packaging, EI’s relationship with PIRA allows the sector to remain on the cutting edge. EI is divided into sectoral teams: Human Resource Development, Business Development, Marketing, and Technology. Hugh Stephens fills the latter bracket. “We approach a sector or client on a team basis and tailor our service according to the client’s situation, their strengths, weaknesses, and specific needs,” he explains.

continue to strive for ways to minimise packaging. “You need to design the product with packaging in mind,” he says. “Far too often, the product is designed in isolation. You must then

The Implications of Packaging In 2007, manufacturers must consider packaging during the product conception stages, asking ‘What implication will the product have on transport, storage and assembly?’ After all, there are legal and moral implications at stake, particularly in the realm of environmental issues. Ireland is currently ahead of it recycling targets and Hugh Stephens praises Repak, the industry’s response to environmental legislation, as “a great success” Nevertheless, the industry must

La Moulière Mussel range, designed by Persona Design for retail in the French market. 45

RN September07Packaging ●

protect the product after it has been designed.” One area of packaging, while profitable, clashes with the minimisation premise: “Retailers want products that will sit on a shelf for as long as possible,” Hugh notes. “They want products to arrive in shelf-ready formats, ready for display and merchandising upon arrival, that can be wheeled to the front of the store with a minimal amount of handling and cost. But this is causing more packaging to be used and is not an ideal situation to be in. Shelf-ready packaging is a concern.”

Retail Packaging Trends Current retail packaging trends include a move toward reusable containers at the expense of the corrugated box, but packaging’s biggest innovation leap is in the area of intelligent packaging. Manufacturers are now seeking ways to add value to their products via technologies that give consumers added benefits. Topping the research list is Radio

Tilley's confectionery range, designed by Persona Design, for more the premium end of the UK retail and export markets.

Frequency Identification (RFID), an automatic identification system that sends signals from product packaging via tags or transponders. From the perspective of food and drink, this technology benefits all stages of the chain. A shopping trolley can be equipped with a scanner, offering information about each chosen product, suggesting complementary items, and keeping a list of the chosen items alongside a price tally.

RFID allows staff to identify the exact location of any single retail item, handling customer requests quickly and efficiently, and retailers can keep a close eye on stock levels as well as purchasing trends. At present, Wal-Mart and Marks & Spencers are piloting RFID. Hugh Stephens insists that the advantages of RFID are “far superior” to current bar-coding, although “it will be seven to eight years before

GCS Designs Custom Closure for Unilever Dressings UNILEVER has invigorated its dressings category with a new package design that features an inverted bottle and oval-shaped, flip-top valved closure. The company worked with GCS (Global Closure Systems) and two bottle partners to develop one standardised design, in a wide range of bottle sizes, for the entire product line to strengthen brand recognition, increase consumer convenience and maximise product freshness. GCS created a unique closure system that is compatible with the inverted bottle design in all bottle sizes, which helps Unilever streamline production for faster speed to market. To meet Unilever’s demand, GCS has dedicated three complete moulding and assembly lines at their facilities in France, Germany and Spain. An oval-shaped cap was selected by Unilever for brand differentiation. In addition, the flip-top, butterflyhinged closure is easy to open and is

resistant to damage or breakage from repeated use. Featuring a valve subassembly system, the closure allows for greater control of the product when dispensing and also ensures the spout remains clean over a long period of time. “We wanted the new pack to offer a unique The Hellmann’s brand, one of the Unilever brands experience from other featuring the new oval-shaped, flip-top valved inverted bottles in the closure from GCS. marketplace. In addition, we had particular requireproduct freshness. GCS designed the ments for the new package design cap with technical precision, for easy from cap shape to protecting product removal, in order to detach the liner, freshness,” said Lorenzo Zaffaroni, and to properly align with the bottle European Supply Manager – Rigid when placed back on the pack. The Plastics for Unilever. “GCS was able new package is currently used for the to deliver a sophisticated and highly company’s portfolio of dressings—coneffective solution for our needs.” sisting of well-known brands such as A tamper-evident, peelable inducAmora, Calvé and Hellmann’s—that tion heat seal (IHS) liner is sealed are available in European markets. onto the bottle to ensure maximum

RN September07Packaging ●

Recycling

the technology replaces the cashier. Eventually, the benefits will outweigh the costs and the unit cost of the tag will fall. RFID has to fall below a cent [per product] and I believe that will be achieved via print, using a magnetic property in printing ink rather than a separate tag. At the moment, the benefits are proving very worthwhile, particularly from a marketing and track-andtrace point of view. In time, RFID will replace your VISA card – people will have non-contact credit cards.”

Innovation Enterprise Ireland – whose primary agenda is to grow profitable export sales for all Irish industry – urges packaging manufacturers to innovate. Just as the country’s larger food groups have proved their mettle on a global stage, so too must our packaging industry. This requires considerable R&D investment, says Hugh. Great packaging innovation ultimately boosts sales. Biodegradable materials are under development, but these are still a tad expensive and do not have the same perform-

Hugh Stephens, Senior Packaging Specialist, Enterprise Ireland.

ance characteristics of traditional materials in terms of shelf life and availability. However, the benefits of re-usable materials are proven and well developed in Ireland. Paper recycling has been established for the last 60 years, while glass is also efficient. “Plastics are a challenge because they have many different ingredients and formulas that must be separated during recycling,” continues Hugh.

Recycling might sound unsuitable when discussing food packaging, but Hugh begs to differ: “In food products, recycling materials can be sandwiched between two virgin grades in a laminate. Some people are concerned that recycled material might be in contact with food, but there is never an intention for that to happen. It is always isolated within virgin material.” In today’s Irish market, decisions around packaging innovation are collectively driven. Most of the larger user groups (pharmaceuticals, multinationals, food businesses) employ packaging engineers as part of their staff. Retailers are extremely influential, largely due to their Repak levy. Hugh Stephens believes that if a food company does not have the technical expertise, then larger packaging companies should work with them in envisaging a new form of packaging that can add value or differentiate their product from the competition. Using such a model, the entire Irish food and drink sector can only rise to new heights.

RN September07Materials Handling ●

Plastic Pallets: The Debate Continues The logistics industry has long debated whether to use wood or plastic pallets. According to Shoeller Arca Systems, plastic pallets have the edge in terms of overseas shipping, hygiene and environmental impact.

Whether

to use wood or plastic pallets has long been a debate in the logistics industry. Both have advantages, depending on the circumstances. Some argue that wood, the traditional favourite, is far more cost effective. Others say that plastic pallets last longer and cost less to maintain, making them more economical over their working lives. Whatever your opinion, 2006 saw the debate intensify dramatically. 48

So what happened? Put simply, a short supply of wood meant pallet prices rocketed. Fears of bird-flu spreading to the UK provoked contamination fears, and recent legislation to control pest problems meant increased production costs for wooden pallets. Plastic pallets have come down in real-term price too, making them more economical. The combination of these issues has put the use of wooden pallets under severe scrutiny. Looking at these issues in detail, the most worrying is the depleting supply of timber. Demand far outweighs the supply and as a result, the world’s forests are being felled faster than they can grow. Forests prevent soil erosion and help stabilize the world’s climate: consequently, this is an environmental concern. The cost implications have been enormous and have thrown the economical advantages of wood pallets into sharp question.

Waste Timber Disposal of waste timber also impacts on the environment. Millions of tonnes of wood are consumed every year. Only a small percentage is recycled. In the UK, it is estimated that wood packaging accounts for 670,000 tonnes of waste timber a year. Much of this is incinerated, releasing concentrated doses of carbon dioxide into the atmosphere. This adds to the greenhouse effect, which is changing the world’s climate. Some waste timber is buried in landfill sites, but slow decomposition causes a problem. Businesses are now looking for other options. 2006 saw the bird-flu epidemic escalate, with thousands of birds culled to limit the spread of the disease. As wooden pallets cannot be

sanitised, they are often discarded after one use, especially if they have been transporting meat. This adds to the waste problems. Plastic pallets are easily sanitised by steam cleaning and pressure washing, making them hygienic. They can be used repeatedly, with little chance of contamination. Because plastic pallets are easy to clean, they are popular with pharmaceutical, food and beverage companies. These kinds of businesses require clean, hygienic, safe transport. The fact that plastic pallets are immune to moisture, fat, acids, solvents and chemicals has proven to be highly advantageous. It is also a contributory factor to the expansion of the plastic pallets market. Plastic can be reused more often, is cheaper to recycle and is not in short supply. Tim Ansell, Managing

RN September07Materials Handling ●

in warehouses and on lorries and weigh up to 40% less than wooden ones. This reduces transport, storage and handling costs. Less energy is required to transport them, saving even more money. Plastic pallets also have a longer working life. Tim Ansell further commented: “The technology and cost of plastic pallets means they are less expensive over their working life than wooden ones.” Director of Schoeller Arca Systems UK said: “Plastic is not a villainous element. It can be quickly and easily recycled at low cost, making it environmentally friendly and cost efficient.”

ISPM15 ISPM15 is an international phytosanitary measure, first introduced in 2003 to stem the spread of pests associated with shipping goods on wooden pallets. Wood is the breeding ground of insects such as the Asian Longhorned beetle, which burrows into trees. Through importing and exporting, the beetle was artificially introduced into other countries in wooden packaging material and with no natural predators in these new environments, devastated woodlands around the world. The majority of the main trading countries, such as the UK and the US, are already enforcing ISPM15. This also includes, among others, Canada, China, Turkey and Argentina, which brought it into legislation during 2006. In April this year, Japan will incorporate it into its requirements for imported packaging. ISPM15 specifies that wooden pallets must be treated before international shipping in one of two ways. The first is heat treatment. This involves heating the wood to a core temperature of 56°C for a minimum of 30 minutes. The second is fumigation, when methyl bromide (a highly dangerous chemical) is used to fumigate the wood. Both these treatments are time consuming and expensive. Plastic pallets do not harbour pests like wooden ones. As a result, they are exempt from the ISPM 15 legislation. They do not require any expensive treatments before shipping abroad. Plastic pallets utilise space better

Conclusions So what conclusions can we draw from all of this? ISPM15 certainly gives plastic pallets the advantage when it comes to shipping overseas. They do not require treatment (or proof of treatment). Often, only the purchase price of a pallet is considered. If maintenance and transport costs are examined over working life, plastic pallets are much more costeffective. Plastic pallets have become a practical, realistic, economical choice. In terms of hygiene, plastic pallets are also the clear winner. They are far easier to clean and do not harbour pests like wooden ones. They are better in automated systems. They do not chip or contain nails, and weigh less. They also protect our forests by helping to conserve valuable wood supplies. The plastic pallets market rapidly expanded in 2006, as more and more businesses have discovered the advantages and opportunities the product

provides. However you view the developments in the pallet market in 2006, the plastic pallet is now a very real alternative to the traditional wooden pallet.

Schoeller Arca Systems Expands Into Ireland LEADING plastic packaging supplier, Schoeller Arca Systems, has announced its expansion into Ireland. Appointed to head the new Irish division is Peter Doyle. Peter has worked at Schoeller Arca Systems for four years, primarily managing their plastic pallet business. In his new senior role as Business Development Manager (Ireland), Peter will oversee the promotion and sales of Schoeller Arca Systems’ innovative logistics products, including Big Boxes, plastic pallets, Epilog bale arm crates and the foldable Magnum containers. He will deal directly with major clients, providing a tailored, professional consultation service. “The new Ireland office is an exciting development and I am delighted to take on the position of Business Development Manager (Ireland),” notes Peter. “The country is a beautiful place and I look forward to building successful working relationships with the people there. I have a supportive team behind me, and a proven product range to work with.” A global market leader in plastic packaging solutions, Schoeller Arca Systems is present in over 50 countries. The company’s Irish launch is supported by a dynamic advertising campaign. For more information, see www.schoellerarcasystems.com. 49

RN September07Sponsorship ●

Bringing Sponsorship to Life Life Communications’ Managing Director Darlene McCormick talks about the increasing importance of sponsorship to brand and corporate communication.

Sponsorship

has now become a major part of brand and corporate communication. It is estimated that in excess of €100m will be spent in this area in 2007 by Irish companies. RETAIL NEWS spoke to Life Communications’ Managing Director Darlene McCormick whose PR company specialises in this area. Last month her agency was commended by the Public Relations Industry for its management of Gala’s sponsorship of the Gala All-Ireland Senior Camogie Championships

What makes a good sponsorship? In layman’s terms, a good sponsorship is like a good marriage. You should do extensive research before choosing your commitment; be sure that both parties are compatible in all relevant areas; look to the future and make 50

sure there is potential room for development and enough there to keep it interesting for the long term; and make sure that the chemistry is there to help if things go wrong!

When should a brand or company consider sponsorship? One of the key benefits from sponsorship is association and positioning. So, for example, if a brand needs to position itself with consumers in a certain way, the right sponsorship can help achieve that. The word “affinity” is used a lot in this area. For example, Gala is a brand that is very much a part of the communities in Life Communications’ Managing Director which it operates. A high perDarlene McCormick. centage of customers are female and they have a focus on fresh tiative delivering on many levels. produce and health and fitness. Many A good sponsorship is also a great of their customers had played, or have way to enter a new market and to family who play, the sport of Camogie. quickly inform the consumer what the So you can see how the sport was an brand values are. Budweiser did that initial good fit. Also, Gala wanted to many years ago with the Budweiser help develop the sport to ensure its Derby - a sponsorship which went the future as it is an important part of distance. Magners has had success our sporting heritage. with its sponsorship of the Celtic If you are targeting a specific marLeague. ket - e.g. young males - then a sponsorship can be an effective way to do that. It is more focused than a simple What kinds of advertising campaign and it shows sponsorships are there your target audience that you underto choose from? stand them and that your brand fits The most popular are Sports and the with their lifestyle. In addition to this Arts. But media sponsorships are poptargeted awareness, there are sponular and increasingly event sponsorsorships that will include sampling ship is attracting major investment. opportunities, corporate hospitality, For example, the Bank of Ireland promotional merchandise and even sponsorship of the Opus Architectural celebrity personal appearances and so Awards is an excellent example of on, so you can see how this can be using an awards sponsorship to target built up into a strong marketing inia key audience - in this case, the

RN September07Sponsorship ●

architects and wider construction industry - and also reinforcing a reputation for excellence and innovation. A really great sponsorship this year was Walkers Sensations’ sponsorship of the TV Now Awards. It was an excellent fit and delivered substantial TV and print coverage, with all of the endorsement from top TV personalities in Ireland and beyond. The big sponsorships people think of tend to be sporting - so the Bank of Ireland Football Championships, The Guinness Hurling Championships, O2’s and Heineken’s involvement with rugby and so on. These are big investment sponsorships, supported by advertising and promotional budgets, and are a great way to see how to get it right. One-off sporting events can also be very worthwhile. This year, we negotiated and managed Kingspan’s sponsorship of the ‘IRB Under 19 Rugby World Championship, Powered by Kingspan’ which were held in Northern Ireland but broadcast worldwide - an important factor for a company expanding globally. The power and strength of the sport was an excellent fit with Kingspan and we developed a strapline for the event taking inspiration from the Kingspan Lion - “Hear the Roar”. This was run across all advertising and marketing material. In the UK, Cadbury’s sponsorship of Coronation Street was a stroke of genius. Not only does it target the biggest number of consumers at a time when they will be most likely to eat a Cadbury product – at home in front of the television with a cup of tea – but also because, through the creative treatment of the bumpers, it is flexible enough to allow them to profile different products throughout the year in a very cohesive way and all under their ‘The nation’s favourite’ strapline. Another very powerful outcome of the sponsorship is the association with every character in ‘The Street’, which is priceless. An example of a recent Irish TV sponsorship is Avonmore’s sponsorship of the TV3 and TG4 weather bulletins. Events allow you to showcase a product and get right in front of a large number of potential consumers.

Gala CEO Gary Desmond (left) and Gala Chairman Liam Peters (centre) are pictured with the President of Camogie Association, Liz Howard, and players at this year’s launch of the sponsorship.

If you look at the very successful Bloom event held in Dublin this year and the range of sponsors that were attracted to it because of its potential profile and high consumer footfall, it gives you an example of just how in demand really good events are.

How will sponsors decide which one to choose? It comes down to the strategic fit, the timing and budgets. Having said that, one of the problems brands and companies are facing is that there is a lack of good sponsorship opportunities available out there now. In my opinion, a brand should choose a sponsorship that it can grow with. It does take time for any sponsorship to ‘knit’. And there is an economy of scale from being in for the longer term. The initiation costs of things like branding will be as much for a one-year sponsorship as for a longer term one, in some cases. Also, consumers will take time to make the connection. To that end, it is really important to choose a sponsorship that you can work with on an on-going basis and adapt to suit your needs.

How do you know how much to spend and what are the additional costs? That is an important question. How much a sponsorship is worth depends on what it is delivering (and who else wants it!). However, there are some

basic guidelines. Firstly - how many consumers will your brand be seen by and how much would it cost to reach them in another way? What TV coverage, PR coverage and actual consumers will there be on the day/s of an event. What are the associated benefits - like personal appearances from players or celebrities that come with the sponsorship and how much would that cost normally? What promotional benefits are on offer (e.g. tickets to the sporting event/concert etc)? How is the sponsored body promoting themselves and what is that value to you (e.g. if they are doing a €100,000 marketing campaign for the event and you are included, you can add a percent-

A good sponsorship is a great way to enter a new market and to quickly inform the consumer what the brand values are. 51

RN September07Sponsorship ●

age of this amount in the value)? This will give you a guideline of value. However, when negotiating, you should also highlight what you are bringing to the table that will help and use that. Whatever process is agreed, both parties should feel they have a good deal if the relationship is to succeed. There are three areas of costs associated with a sponsorship: 1) The cost to the sponsor; 2) The associated costs - so branding; advertising; PR; promotional materials; entertaining and so forth that you are adding in; 3) Human costs - making sure you have people who can get the most from the sponsorship.

want to get out of it: otherwise, how can they evaluate it? If consumer awareness is an objective, do the research beforehand and benchmark afterwards. If you have been promised a certain level of TV and other exposure, measure it. If you are driving sales and supporting the sponsorship from a promotional and trading perspective, did you achieve that? Sponsorships can be easily valued.

What are the main things a sponsor should look out for? And what are the pitfalls?

What I have found is that most problems that arise go back to the contract negotiations. This is a very skilled area and you really need someone The guideline is that the sponsorwho understands what’s ahead to ship will cost three times the investnegotiate the contract. There is no ment to the sponsor. Having said that, I point going back to say that, for examhave worked on sponsorships where it ple, you need an additional box at is less than that. We have worked on Croke Park for your customers. If it is sponsorships that have cost less not on the agreement, chances are you than €20,000 and have delivered excelwon’t get it. lent targeted results. The ideal sponsorship is a title sponsorship. I am not a fan of the “in association” approach - it makes What results should branding much more difficult and sponsors expect to see? minimises brand mentions across all Any sponsor should be clear before media. agreeing a sponsorship on what they If you are one of several sponsors, you need to handle this differently than if you are the title sponsor to maximise impact. Where this works well is if a sponsor is one of many, but the only one in a given sector. That’s OK because you can develop a sector specific support campaign and so it will be very targeted. Another area of concern is what happens if things go wrong? Say you sponsor an event that gets bad publicity for one reason or another or perhaps for unforeseen reasons, the event is cancelled. What are your rights? On an operational level, protecting your brand Nicky Wells, Walkers Marketing Manager and TV Presenter Ryan Tubridy at the Walkers Sensations and the use of the brand TV Now Awards. logo and identity is impor52

What I have found is that most problems that arise go back to the contract negotiations. This is a very skilled area and you really need someone who understands what’s ahead to negotiate the contract. tant and the execution of a sponsorship can be time consuming. You will need a human resource to monitor and approve all written materials and also allocate time from senior executives to attend launches and key events. Another big watch out has to be how professional is this organisation that I am about to get involved with? Do they have the necessary internal resources to make this sponsorship work for us? You are marrying your brand or company to them and so you need to be 100% confident that that association will be easily managed. And finally - when things do come to an end - be conscious of the need to have an ‘exit strategy’. How you end a sponsorship can affect brand regard and how you communicate it is also vital. Fortunately, there are experts in this area who can advise and it is important that any brand or company getting into the sponsorship arena has the knowledge and resources to really maximise its investment. Finding the ideal sponsorship opportunity takes time and a lot of work….but it is only the beginning! www.lifecomms.com darlene@lifecomms.co.uk

RN September07Sponsorship ● ent in terms of developing the brand's personality, and to the traditional sports sponsorships, allowing Bulmers to support comedy and broaden the brand's appeal to varied adult and new audiences, referencing the subtle/sophisticated humour inherent in the brand personality.

Comedians Deirdre O’Kane and Lewis Black with Bulmers Marketing Manager, Orlaith Fortune.

Apple Talk Bulmers Marketing Manager, Orlaith Fortune discusses the value of the Bulmers International Comedy Festival to the brand.

The

Bulmers International Comedy Festival, which takes place in various venues throughout Dublin from September 2-23, 2007, is now one of the biggest comedy festivals in the world. We asked Orlaith Fortune, Bulmers Marketing Manager, about the value of sponsorship in general and the Bulmers International Comedy Festival in particular, to the brand.

How important is sponsorship to a brand like Bulmers? A well chosen and well executed sponsorship is extremely important to a premium brand. Bulmers’ sponsorship of the comedy festival has led to Bulmers becoming synonymous with comedy with most media and comics calling it the ‘Bulmers’ Festival (‘Are you doing the ‘Bulmers’’?). The sponsorship positions Bulmers as an innovative and dynamic brand, bringing a much awaited comedy festival to Dublin and providing consumers with a way of interacting with the brand, fitting given its status and appeal.

What are the benefits to be derived from the sponsorship? The sponsorship of the Bulmers International Comedy Festival has allowed Bulmers to deepen consumer engagement with the brand. It has helped Bulmers align with and take ownership of a premier festival, showcasing world class comedy in Ireland, with a genuine brand ‘fit’ and infinite potential for PR, promotional, advertising, branding and product placement opportunities. It has also been a vehicle by which Bulmers has been able to nurture and support trade customer relationships.

What does sponsorship give you that direct advertising does not? With consumers being exposed to so much advertising, a sponsorship allows brands such as Bulmers to engage with consumers on a deeper level. Our complimentary tickets have proven to be an effective tool in securing new accounts for the Bulmers product portfolio, valuable currency in terms of securing new business opportunities for the brand, whether via opening up corporate hospitality, running on-trade promotions for free ticket give-aways, sampling and product placement opportunities at the events, and generally generating goodwill amongst the trade.

Why did you decide to sponsor the International Comedy Festival? The Bulmers International Comedy Festival provided a new alternative in the sponsorship arena, an opportunity for the brand to do something differ-

How difficult is it to find the right 'fit' in terms of sponsorship for your brand? Bulmers spent over five years looking for the right sponsorship with the right 'fit' for the brand. Previously, the brand had been involved in predominantly sports sponsorships, via the GUI All Ireland Cups & Shields, as well as the Arts, with Cork Opera House, and as the brand matured, an entertainment sponsorship became more relevant.

Has it become more difficult to find potential sponsored events that tie in with your brand ideals? The sponsorship environment in Ireland has changed considerably over the last decade. There are fewer new, exclusive, large scale sponsorships available. You will find that many large sponsors are working together on single events (e.g. rugby, FAI, Olympics etc). There has also been an increase in the number of small to medium sized sponsorships. The sponsorship market is hugely competitive in terms of share of audience/voice. It is now more costly than ever before to establish a sponsorship and there are greater demands on sponsors in terms of sponsorship support.

Will the Bulmers brand continue to engage in sponsorship? Bulmers is now in its fourth year sponsoring the International Comedy Festival, which has become one of the top five largest comedy festivals in the world. A truly international festival, with acts coming from across the globe, the Bulmers International Comedy Festival in past years has played host to the crème de la crème of comedic talent from the undeniable genius of Denis Leary, Multi Award winning British writer/comedian Ricky Gervais and Ireland’s biggest ever comedy event – ‘Little Britain’. 53

RN September07Hot Beverages ●

Drinks Market Heats Up The hot beverages market in Ireland continues to rise, with premium and healthoriented products driving market growth.

Lyons Tea, Ireland’s number one tea brand, has launched new packaging for its range, which reflects the totally natural quality of tea.

The

market for Hot Drinks in Ireland increased between 2001-2006, growing at an average annual rate of 1.5%. In general, it is the continued rise of premium and health-conscious products which are fuelling this category growth, as standard formats of tea and coffee begin to falter, with consumers demanding innovative products and more variety. The growth of premium coffee blends, green tea and herbal teas have been phenomenal. However, black standard tea and instant coffee still represent the bulk of volume sales. Meanwhile, chocolate based powered drinks continue to show strong growth, with a wealth of premium, indulgent products tempting consumers into this category. The speciality coffee range is forecast to grow, with latte and mocha products joining the everpopular cappuccino. 54

Long renowned as a nation of tea drinkers, the Irish have really embraced the coffee revolution of the last decade, according to Euromonitor International. In 1997, tea accounted for 67% of all hot beverage sales in Ireland, with coffee standing at 39%. By 2006, however, coffee sales had grown to 39% of the market, with tea accounting for 57%. Another important factor to be taken into account is the growth of ethical shopping, with Fairtrade products gaining in popularity with Irish consumers all the time and most of the main hot beverage suppliers keen to display their Fairtrade credentials. Many stores throughout Ireland don’t just offer take-home tea and coffee, with an increasing amount of convenience stores installing in-store tea and coffee machines, particularly in the forecourt sector. This is good news for the sector overall, as is the growth

of premium coffee shops on the high street, as more consumers embrace the hot drink revolution.

Lyons Tea Lyons Tea, Ireland’s number one tea brand, has launched new packaging for its range, which reflects the totally natural quality of tea. The new packaging is part of a major re-launch of the iconic Irish brand, which has been a part of Irish life since 1902. The launch of the revitalised packaging follows on from the new above the line campaign, which focuses on the extraordinary qualities of tea. The current execution, which has appeared on TV and on outdoor media, highlights that tea is totally natural, with nothing added but wind, rain and sunshine. The new packaging incorporates imagery of tea leaves and the Lyons Tea green colour to reinforce the ‘Totally Natural’ posi-

No.1, NATURALLY. HQDK@MCÒR MN-0 SD@ AQ@MC+ L@JHMF NTQ MDV KNNJ O@BJR @ M@STQ@K EHQRS BGNHBD NM XNTQ RGDKUDR-

THE QUALITY TEA

RN September07Hot Beverages ●

tioning communicated in the above the line. To celebrate the launch of the new revitalised packaging, Lyons Tea is running an on-pack promotion whereby consumers will receive a limited edition branded tin Tea Caddy with 160’s packs of Lyons Gold Blend and Lyons Original Blend teas. The promotion runs in selected Dunnes, Tesco, SuperValu and Superquinn stores nationwide, throughout the month of September. Lyons Tea is also launching a new on-pack promotion as part of the ‘Extraordinary Qualities’ campaign. Lyons Tea will be giving away €120,000 to Irish charities over the course of a year. By collecting the tokens on special packs of Lyons Tea, consumers can enter the competition to win €10,000 for their favourite charity. Lyons Tea currently claims a 43.3% market share. The Lyons Tea range includes Lyons Original Blend, Lyons Gold Blend, Lyons Gold Blend Reserve, Lyons Kenya Blend and Lyons Decaffeinated Tea.

biggest brand within Premium Instant Coffee, according to Kraft Foods. Now, Kenco have launched a fantastic new range of Superpremium single origin coffees that are sure to be a bit hit with consumers. The new Kenco Pure varieties are made only from beans grown in one country for a singularly distinctive taste. What’s more, all the beans are ethically sourced from Rainforest Alliance Certified farms. Only farms that protect the environment, the welfare of workers and the interest of cof-

Carte Noire is hugely popular with Irish consumers and is loved for its distinctive good looks as well as its fabulous aroma.

Kraft Foods Coffee continues to grow in popularity with Irish consumers, with significant growth coming through, particularly in the premium segments. Maxwell House claims market leadership of the Powdered Instant Coffee sector, thanks to its unique smooth and mild taste. Maxwell House is available in 50g, 100g, 200g and 300g jars. Kenco is already the second

Maxwell House is massively popular with Irish consumers, thanks to its unique smooth and mild taste.

fee-growing communities are awarded Rainforest Alliance Certification. This new Kenco Pure range is available in three 100g varieties, each with its own unique taste profile: Kenco Pure Brazilian (Dark & Smokey), Kenco Pure Costa Rican (Intense & Aromatic) and Kenco Pure Columbian (Balanced & Fruity). The launch is being supported by a heavyweight campaign in TV, press, online and also with DM and sampling activity. Carte Noire is hugely popular with Irish consumers and is loved for its distinctive good looks as well as its fabulous aroma. Carte Noire is available in instant (100g & 200g packs) and Roast & Ground (227g) varieties. Kraft continue to support Carte Noire in-store, as well as through sponsorship of French cinema.

Nestlé

New Kenco Pure varieties are made only from beans grown in one country for a singularly distinctive taste. 56

Nescafé claims leadership of the Irish instant coffee market with 49.7% share. Renowned for its coffee expertise, Nescafé has an impressive portfolio of products to suit a wide range of coffee tastes. Nescafé Original has a long running association sponsoring The Ian Dempsey Breakfast Show on Today FM. Nescafé Gold Blend is popular with consumers who prefer a richer everyday coffee, and its unique positioning is encapsulated in its romantic advertising heritage. For the more discerning coffee consumer,

RN September07Hot Beverages ●

Aero brand will benefit from €500,000 media support through TV, radio and outdoor. ’Melt Away’ promotional packs of Aero Hot Chocolate are currently available in convenience stores and supermarkets nationwide.

Nestlé’s new ‘Melt Away with Aero’ instant win promotion will give 500 lucky consumers the chance to win a pampering break at Monart Destination Spa.

Over the past 16 years, Cafédirect have developed long-term partnerships with growers in 12 countries around the world. They invest a significant proportion of their profits (60% over the past 3 years) into growers’ businesses, to develop their expertise and guarantee exceptional quality products. Their range is 100% Fairtrade and includes Cafédirect fresh ground coffee blends, gourmet fresh ground coffee & coffee beans, Classic Blend instant coffee, Teadirect, tea and Cocodirect, their luxurious drinking Nescafé Gold Blend is popular with consumers who chocolate. prefer a richer everyday coffee.

Nescafé offers bold and intense Cafédirect Robert Roberts flavours from the Connoisseur Cafédirect is one of the world’s largest The Robert Robert’s name has been Collection, comprising Alta Rica, Cap Fairtrade companies and offers the associated with coffee and tea on the Columbie and Blend 37. Irish consumer great tasting products, Irish market since 1905. However, like Keeping in line with the café culwhilst enhancing the quality of life of most successful companies, it has ture trend, Nescafé has a speciality the communities who produce the cofinnovated and adapted in order to range of sachet coffees including fee, tea and cocoa. stay ahead. Cappuccino, Latté, Mocha and the Cafédirect is enjoying spectacular Robert Roberts fresh coffee has had recently launched Cappuccino Skinny growth in Ireland, thanks to increased an incredibly successful year in retail with only 58 calories per serve. consumer interest in the Fairtrade and foodservice, following an extensive Nestlé’s new ‘Melt Away with Aero’ movement in Ireland, with sales of re-branding exercise at the end of 2006. instant win promotion will give 500 Fairtrade products increasing by 75% The range now encompasses four single lucky consumers the chance to win a in the last year. Cafédirect have origin coffees, a Fairtrade Decaf Coffee pampering break at Monart enjoyed phenomenal growth in Irish and a Fairtrade Guatemala coffee. Destination Spa. The promotion is runsales, to the tune of 50% over the last Robert Roberts was the first fresh ning across the brand on promotional 12 months alone. coffee on the Irish market with the bars of Aero Milk, Aero Mint or Aero Caramel and Aero Hot Chocolate. Consumers simply unwrap bars or open packs of Aero Hot Chocolate to see if they’ve instantly won a luxury stay at Ireland’s leading destination spa. The 500 lucky winners will enjoy the ultimate opportunity to leave behind everyday cares as they escape to the tranquillity of Monart. Each prize consists of luxury bed & breakfast accommodation for two people as well as a tension release massage and full use of the therThe Cafédirect range includes Cafédirect fresh ground coffee blends, gourmet fresh ground coffee & coffee beans, Classic Blend instant coffee, Teadirect, tea and Cocodirect, mal spa facilities. their luxurious drinking chocolate. During the same period, the 58

RN September07Hot Beverages ●

Robert Roberts fresh coffee has had an incredibly successful year in retail and foodservice, following an extensive re-branding exercise at the end of 2006.

Launches this year have focused Rainbow Alliance accreditation, which on the area of health & wellbeing and ensures a fair deal with workers along have included the phenomenally sucwith strict environmental guidelines cessful Puerh tea, shortly followed by for the protection of the native habitat Blackcurrant Puerh. Another innovain which the coffee is grown. Robert tion has been linking up with Roberts also will be revealing an extenPowerscourt Springs Health Spa to sive advertising campaign later this develop a high quality Detox brand. year. Consumers and retailers should look Innovation has also been at the out for more new product developforefront in the tea category. Robert ment from Robert Roberts towards Roberts were already market leader in The hugely popular Fairtrade Tea from the end of this year. strong niches such as Decaf, Organic and Robert Roberts. Fairtrade and late 2005 saw the company entering the speciality tea sector. Robert Roberts now GlaxoSmithKline claims to be the leading Irish manufacturer in this sector. As the only pure malt hot beverage in the instant beverSpeciality teas have enjoyed double digit growth over the last ages category, GlaxoSmithKline’s Horlicks continues go number of years and Robert Roberts has been to the forefront from strength to strength in this sector. The brand’s sucof this growth through strong NPD. cess has been driven by its strong health benefits.

Magners League 2007-8 Season Launch The

kick-off of Magners League Season 2007/08 heralds a new advertising campaign for Magners. Shot on location in the magnificent Bulmers orchards in Clonmel, Co. Tipperary, ‘Orchard Charge’ shows us just how seriously rugby is taken in the orchards, particularly when the Orchard manager’s back is turned. Starring real Bulmers employees and players from the local Rugby Club, the epic soundtrack to the commercial was composed by Ian Smith. Maurice Breen, Marketing Director, Magners, said “The Magners League is one of the leading competitions in world rugby and we are delighted to be associated for the second year with the fantastic rugby played in the League. The continued success and growth of the Magners League has been helped by Magners’ commitment to invest substantially in the League, including developing new Outdoor and TV commercials.” The ‘Orchard Charge’ creative was designed by Young Euro RSCG and directed by Richie Smith. The new commercial will run from September 7th across all television ‘Orchard Charge’ stations.

Pictured at the launch of the 2007/08 Magners League Season at Liberty Stadium, Swansea, are Andrew Farley (Connacht), Anne Hogan, Brand Manager, Magners, Leo Cullen (Leinster) and Barry Murphy (Munster).

Speaking at the launch of the 2007-8 Magners League at the Liberty Stadium, Swansea, the home of the current champions Ospreys, Celtic Rugby Director David Jordan, noted, “In the coming season we will be looking to build on the success of what we have experienced over the last 12 months. Attendances at Magners League games have increased by 15.7% overall, the average gate for a game is now over 6,000 with several of our fixtures selling out, including the record 48,000 that packed into Lansdowne Road on New Year’s Eve to watch Leinster take on Ulster in the last game at the famous stadium.” 59

RN September07On The Vine ●

Wines from the Old World Jean Smullen charts the performance of Old World wine countries on the Irish market.

know that the Irish wine market is growing, but what of European wines? What ‘Old World’ wine countries are the Irish consumers going to when they buy a wine? Sales of French, Spanish and Italian wines appear to be showing some growth in both volume and value terms in the off trade. In the multiple sector, total wine sales from France, Spain, Italy, Germany and Portugal are all also showing small growth. France and Italy are also growing well in the independent and specialist off licence sector, indicating the European revival is small but growing. Younger consumers are starting to show an interest in wines from Europe. Consumers are now looking at wines from designated geographical regions such as AOC Chateauneuf du Pape in the Southern Rhone, DOC Chianti in central Italy, DO Rueda in the Northern Spainish region of Castila y Leon and DOC Douro and DOC Dão in Northern Portugal. A swift tour of Europe shows developments which are impacting on the sales of wines from these wine countries.

France France is showing mixed fortunes. There are many small specialist importers of French wines, particularly from appellations in the south of France, and these are leading the way in terms of sales. While France suffers from a lack of ‘brands’ per se, when the customer thinks of quality wine, it is to France that they inevitably turn. France is also starting to change its strategy and to create branded wines, which can compete head-on globally with the best the new world has to offer. Marketing initiatives such as the OVS launch in 2006 of

Spain

Chamarré is distributed in Ireland by Ampersand and offers varietal interregional wines which are modern and well made.

‘Chamarré’, a French wine brand, has turned French production on its head. OVS have access to 50,000 hectares of French vineyards and now have one of the highest production capacities in France. Bright, lithe and confident, the vivid Chamarré French wine brand represents six of the largest wine cooperatives across France. By joining forces, ditching the French love affair with sacred wine region appellations and over-complicated tiered classifications, this cross-regional consumerdriven French wine brand is a bold new concept for French wine production. Chamarré is distributed in Ireland by Ampersand and offers varietal inter-regional wines which are modern and well made. They also stay true to the French appellation principal by offering mid-priced wines from well know wine appellations such as Jurancon and Bordeaux.

Spain is also moving forward, with pricing a key issue. One of the strengths of the Spanish wine market is that although the price points are moving up, the wines are holding their own in terms of price/quality ratio. The key to quality in Spain is their old vines and low yields. Vino del Terra is ‘new style Spain’, similar to IGT in Italy and Vin du Pays in France, and this is where there is excellent value to be found. Spain has a huge range of wines, both red and white, made using modern viticultural and winemaking techniques: it certainly has a lot to offer at the moment. The region of Castilla y Leon

Torres Named Top European Wine Brand THE Torres brand, distributed by Woodford Bourne Ltd, has been named the number one European wine brand. In ‘The Power 100: The World’s most powerful spirits and wine brands’, published by the famous ‘Decanter’ website, Torres was listed as the number one European wine brand, while in the world rankings, Torres was listed in a highlyrespected 15th position. This endorsement follows Torres being named European Winery of the Year by Wine Sangre de Toro Enthusiast and Vina Sol, Magazine’s 2006 part of the hugely popular and Wine Star influential Torres Awards. range.

RN September07On The Vine ●

reflects the developments in Spain. Well known for its quality wine appellations, it is to these regions that many of the Irish trade look when sourcing Spanish wines. The DO Rueda offers modern Spanish white wines which are making a big hit at the moment. A good example of this is the Oro de Castilla range. This producer makes zesty wines with Sauvignon Blanc and also from the Spanish Verdejo grape. These are fine examples of modern commercial Spanish wines. The Oro de Castilla range is produced by Bodega Hnos de Villar and is distributed in Ireland by Wines Direct and Bubble Brothers.

Portugal Portugal has a small but growing band of Irish consumers who think that Portuguese wines are fashionable. Regional wines are where a lot of innovation and experimentation are currently changing the face of wine-making in Portugal. The DOC’s of the Douro, Dão and Alentejo are a microcosm of what is happening in Portugal: modern, innovative wine makers making good value quality wines, which are selling at competitive prices. Take the DOC Dão, a traditional winery Casa de Santar, which was originally founded by the Santar family in 1790: it is now making modern, fresh white wines from the local Encruzado grape. The Quinta da Cabriz is fresh, zesty, and very commercial and is starting to make

an impact with interntional wine lovers. Quinta da Cabriz is distributed in Ireland by Wicklow Wine Co. One of the world’s first global wine brand, Mateus Rosé (now distributed by Findlater/Grants) also hails from the Dão region, where it is produced as one of the big modern wineries owned by Sopgrape, one of Portugal’s biggest producers. Sopgrape also produce the zesty Gazela, a vibrant Vinho Verde. The Duque du Viseu, one of Sogrape’s quality brands, is another well known Dão wine, made from a blend of red Portuguese grapes includieng Touriga Nacional and Tinta Roriz. This is modern commercial winemaking, which offers good value at a competitive price. Both Gazela and Duque du Viseu are distributed in Ireland by Febvre & Co.

Launch of Krug 1996 THE release of a Krug vintage is always a momentous occasion, for Krug declares a vintage only in those years that demonstrate, above and beyond excellent quality, truly outstanding character and individuality. And so the launch of Krug 1996, from Edward Dillon & Co. Ltd, is a special occasion, with the historic 1996 vintage showcasing all the intensity and elegance for which it is renowned. Krug 1996 retails at €197.99.

Italy Italy is enjoying a small revival. The sparking wine Prosecco is the new ‘big thing’ as customers are becoming much more adventurous and enjoy this lighter style sparkling wine from the Veneto region. Prosecco is a light fresh sparkling wine, low in alcohol and intensely aromatic. Prosecco is both the name of the grape and the wine. As a sparkling wine style, Prosecco is rapidly creating a niche for itself as a price effective traditional sparking wine style, which can compete on price with the best which the new world has to offer.

Some of the better know Proseccos currently available in Ireland include Bisol, which is distributed by Searsons Wine Merchants; Valdo, which is distributed by Febvre & Co; and De Vaveri from Papillon Wines.

Agency Moves AUTUMN 2007 sweeps in like a new broom, with many agency moves on the cards now and in the coming months. Concha Y Toro Following a lengthy and detailed review, FindlaterGrants and the Concha y Toro Group have reached a mutual agreement on the strategic future and direction of the CYT Group brands (Cono Sur, Concha y Toro and Trivento) in Ireland. The Concha y Toro Group strategy is that their two flagship brands, Cono Sur and Concha y Toro, should be with different distribution companies. This is the case in all key markets except Ireland. Consequently, distribution of Cono Sur

and Trivento will remain with FindlaterGrants, whilst distribution of the Concha y Toro brand will transfer to Irish Distillers-Pernod Ricard later this year.

Babich Ampersand Wines are the newly appointed Irish distributor of Babich Wines, one of New Zealand’s largest family-owned and operated wine companies.

Lupe Cholet Lupe Cholet wines (including Ch. Viviers fro Chablis and C. St Gris from Nuits St Georges) have moved from Edward Dillon & Co. Ltd to Classic Drinks.

Altair The agency for this premium wine from Chile has moved from Cassidy Wines to Tindal Wine Merchants.

Rosario Classic Drinks Ltd are also the new agents for the wines of Rosario from Chile. Rosario has been a huge success story in the Irish on-trade.

William Fevre The agency for this premium wine from Burgundy has moved from Findlater/Grants to Tindal Wine Merchants.

RN September07Drinks News ●

Beamish On The Ball PICTURED at the Cork City v Sunderland match preview lunch recently at the Rochestown Park Hotel in Cork are (lr): Alf Smiddy, Managing Director, Beamish and Crawford; Niall Quinn, Chairman of Sunderland FC; and Charlie Chawke, Sunderland shareholder.

Guinness Hurling Bootcamp Winners THE final of the Guinness Hurling Bootcamp took place recently, where football legend, Charlie Redmond emerged as the overall winner of the skills competition in the final programme, while Kerry All Star, Liam Hassett was voted as the public's number one choice. Both Charlie and Liam walked away with €25,000 each for their respective charities, Cystic Fibrosis Ireland and Mental Health Ireland. Pictured are (l-r): Liam Hassett, Pamela Selby, Guinness Brand Manager, and Charlie Redmond.

Appointment at Castle Brands CASTLE Brands Inc., the owner of Boru Vodka, is pleased to announce the appointment of Jason Finnegan to the position of Commercial Director, Republic of Ireland of its subsidiary, Castle Brands Spirits Company Limited. Finnegan has held the position of Southern Regional Manager with Castle Brands since joining the company in July 2004. As Commercial Director, Finnegan will be responsible for developing and growing the current portfolio of premium brands, which includes Boru Vodka, Gosling’s Rum, Knappogue Castle Whiskey and Pallini Liqueurs.

Grey Goose Team up with Patrick Guilbaud GREY Goose, the premium vodka, teamed-up with Michelin Star Restaurant Patrick Guilbaud to form a unique Grey Goose inspired dining experience to mark the occasion of the French national holiday, Bastille Day on Friday, 13th July and Saturday 14th July 2007. Attendees included film producer Jim Sheridan and his wife Fran, artist Terry Bradley, TV3 news anchor Colette Fitzpatrick, charity queen Caroline Downey, and Chanel's PR and Marketing Director Frederique Thoummany. The French Embassy in Ireland was represented by Dominique Causse, the French Economic and Commercial Counsellor. Pictured at the Grey Goose Bastille Day Celebrations, in association with Restaurant Patrick Guilbaud, are (l-r): Stephane Robin, John Pearson, Patrick Guilbaud and Tiernan Ó Morain.

New €600,000 Bud Light Campaign BUD LIGHT is investing in excess of €600,000 in a new above the line campaign to support the brand. The campaign comprises of two separate TV executions, ‘Reggae’ which first aired in July and a new Bud Light advertisement entitled ‘Locker Room’, which also incorporates the Bud Light tagline, ‘Enjoy the lighter side of life’. ‘Locker Room’ features the aftermath of a major sporting event, whereby a TV crew are in the team’s Locker Room and interview a ‘hero’ who is seemingly part of the celebrations. After obliging the

crew with an interview, the ‘hero’ reveals he’s not on the team after all, but that he’s just there for the Bud Light.

RN September07Sauces & Condiments ●

Complements to the Chef The sauce and condiments market is booming, as more and more Irish consumers look to complement their meal with a tasty sauce, dip or relish.

Consumers

are constantly looking for ways to experiment with different food types but in a way that does not demand too much of their free-time, especially during the week. Indeed, Irish consumers have become far more experimental in their dietary choices in recent years thanks to a number of factors: among them, increased foreign travel and a more affluent consumer. This has inexorably led to an increase in consumption of ethnic cuisine, both in restaurant and at-home, with dramatic increases in sauce sales across a plethora of food types (Italian, Mexican, Indian, Chinese, Japanese, Thai etc), with more and more consumers willing to experiment with trying out different recipes at home. Of course, there’s far more to the Sauces & Condiments market than cook-in sauces, with table sauces, dips, marinades and pour-over sauces all showing strong growth, as innovative new flavours fuel consumer

Heinz Top Down Tomato Ketchup has proven extremely successful, with its unique combination of an innovative stay-clean cap and all the flavour of Ireland’s favourite Tomato Ketchup.

demand and perfectly tie in with the desire to create tasty, authentic dishes with a minimum of fuss or time outlay.

Heinz Heinz Tomato Ketchup is undoubtedly the world’s number one sauce brand. Its unmistakeable flavour has been enjoyed by consumers around the world for more than 120 years and is sold in over 150 countries. The Heinz Tomato Ketchup range boasts an extensive selection of SKUs in glass, squeezy and Top Down formats. Heinz Top Down Tomato Ketchup has proven extremely suc-

cessful, with its unique combination of an innovative stay-clean cap and all the flavour of Ireland’s favourite Tomato Ketchup. Heinz Top Down Ketchup is available in 570g, 910g and 1.2kg packs. The Heinz Tomato Ketchup range, in keeping with increasing consumer demand for organic products, also includes an organic variety. Heinz Tomato Ketchup is a household favourite and is the best selling tomato ketchup brand with a 61.3% value share of the Tomato Ketchup category (Source: ACNielsen, July 2007). Heinz Top Down Barbeque Sauces remain a family favourite, both indoors and for barbeques. The range offers a choice of two varieties, Original and Hot ‘n’ Sizzling, both of which are delicious accompaniments for both red meat and chicken all year round. Also from Heinz comes the HP range of Brown and Barbecue sauces which make a popular addition to any household’s sauce repertoire. Recently launched in a handy Top Down pack, HP is the only Brown Sauce on the market to offer stayRecently launched in a handy Top clean technolDown pack, HP ogy while still Brown Sauce offering the offers stay-clean distinctive technology with HP fruity the distinctive HP fruity flavour. flavour. 63

RN September07Sauces & Condiments ●

Knorr make their curries specifically to cater for a range of taste buds – ranging from Knorr Mild Curry to Knorr Hot Curry, as well as a Knorr Fruity Curry for consumers who prefer something sweeter. Knorr have recently launched Knorr Chicken Tonight Stir-Fry

The Knorr Mealmaker range, which Unilever claim dominates the casserole market, has also experienced growth in 2007. It proves that some of the original and authentic casserole dishes such as Shepherds Pie and Chicken Casserole are back in fashion with consumers - as it allows

The Stir Fry Sensations range from Amoy offers an extensive range of varieties that help consumers to create tasty meals in minutes.

The Oriental Market is one of the fastest growing areas within the Irish Grocery industry and the Amoy brand, from Heinz, is very much on trend, offering consumers healthy, tasty and convenient food through its range of Stir Fry Sauces, Soy Sauces, ingredients and accompaniments. The Stir Fry Sensations range from Amoy offers an extensive range of varieties - from traditional Aromatic Sweet and Sour through to Thai Green Curry, Roasted Peanut Satay and Succulent Szechwan Tomato - that help consumers to create tasty meals in minutes but with the added benefit of feeling that they have been actively involved in the cooking process. The Amoy Soy Sauce range offers much by way of choice including Reduced Salt and Light Soy varieties, in addition to Dark Soy and a variety infused with Chilli.

Unilever Foods Knorr knows that consumers want to experiment with their cooking, but at the same time do it quickly. Based on that, Knorr has developed different ranges to suit any occasion: whether consumers are looking for a dry sauce or a wet sauce, Knorr has a sauce to suit their needs. 64

Knorr Dry Pour Over sauces have experienced continued growth in 2007.

Sauces in three varieties – ‘Sticky Soy, Balsamic Vinegar and Peppers’, ‘Cherry Tomato, Red Chilli and Vodka’, and ‘Thai Style Lime, Red Chilli and Coconut’. Each unique variety combines a unique blend of flavours to create a delicious chunky stir fry that will make a meal for 1-2 people in 10 minutes. Knorr Wet Pour Over Sauces are also about to undergo a relaunch in the coming months. Knorr have improved the recipes and extended the range to five varieties, which will be hitting the stores in October 2007. The range includes Creamy 3 Pepper Sauce, Bearnaise Sauce, Hollandaise Sauce, Wild Mushroom Sauce and Creamy Curry Sauce. Knorr Dry Pour Over Sauces have experienced continued growth in 2007, proving that Knorr Sauces are number one in sales, quality and taste within the Irish pour over sauces market, according to the company. Knorr Pepper Cream Sauce remains Ireland‘s number one selling packet sauce and maintains a very loyal consumer base who keep coming back for more, the company claims.

them to make delicious tasty family meals with no hassle. Knorr claims leadership of the casserole market with a massive 43% market share

Knorr has developed different sauces to suit any occasion and any tastes.

RN September07Sauces & Condiments ●

Bramley Apple Sauce; and Horseradish Sauce. Colman’s is also the number one player in the mustards market. Colman’s recently launched two new mustards in a squeezy bottle format: Colman’s Squeezy English Mustard 150g; and Colman’s Squeezy American Mild Mustard 150g.

Mars Ireland

Hellmann’s squeezy mayonnaise bottles are available in a 350ml and 650ml top down format.

(Source: ACNielsen, July 2007). Also from Unilver, Hellmann’s has a vast range of products for all tastes, with a portfolio range across mayonnaise, salad dressings and snack sauces. Hellmann’s continues to dominate the mayonnaise market, claiming a value share of 86% in a market worth €12m, growing at 6%. Hellmann’s are launching their range of squeezy mayonnaise bottles in a 350ml and 650ml top down format. The new bottles will have improved functionality with better squeezability and a stay clean valve, ensuring the mayonnaise remains fresh to the last squeeze. The new bottle will be ideal for all barbeque occasions. There will be new TV and outdoor communication around the relaunch of the new squeezy bottle format. From the same company, the Colman’s range includes six great tasting condiments with a great new

look. The new look condiments will be on shelves from mid-September and

Dolmio from Mars claims leadership of Ireland’s Italian sauce sector with a 60% share of the pasta sauce market (Source: ACNielsen Extended Scantrack June 07). Dolmio offers a wide range of pasta sauces that are tailored to consumer needs, enabling them to prepare nutritious and tasty meals with minimal fuss. Bolognese sauces are at the core of the Dolmio brand with 69% share of the Bolognese market (Source:

Dolmio offers a wide range of pasta sauces that are tailored to consumer needs, enabling them to prepare nutritious and tasty meals with minimal fuss.

are available in six exciting varieties: Garden Mint Sauce; Classic Mint Sauce; Tartare Sauce; Seafood Sauce;

The Colman’s has six great tasting condiments with a great new look, including Classic Mint Sauce, Bramley Apple Sauce and Tartare Sauce.

ACNielsen Extended Scantrack June 07). Dolmio recently re-launched its Bolognese sauce range, which now only contain 100% good honest ingredients and still no artificial colours, flavours or preservatives. The premium segment of the Italian Sauce market has grown significantly over the past number of years and Dolmio has responded to consumer needs and changing trends by introducing a new range of premium, ready made pasta sauces – Dolmio’s Tastes of Italy. The Taste of Italy range consists of four pasta sauces that capture the authentic flavours and tastes of the four Italian 65

RN September07Sauces & Condiments ●

gramme of activity and PR, ensure the brand will stay one Ireland’s most loved brands for years to come. Uncle Ben’s from Mars remains the number one brand leader in the ethnic sauce and rice categories and with no artificial colours, Dolmio has responded to consumer needs and flavours, preservachanging trends by introducing a new range of tives or monosodium premium, ready made pasta sauces – glutamate (MSG), Dolmio’s Tastes of Italy. Uncle Ben’s sauces are perfect for busy families who regions from which the recipes origiThe Chef range is best known for its demand great tasting high quality nate: Calabria, Tuscany, Sorrento and tangy tomato ketchup and famous brown meal solutions which can be ready in Rome. Consumers simply heat and sauce, both of which prove extremely minutes. pour over freshly cooked pasta for a popular with Irish consumers. Uncle Ben’s sauce remains the delicious meal for two. ethnic sauce category leader with a Offering a complete meal solution sauces and vinegar for the Irish mar27% market share (Source: ACNielsen in a matter of minutes, Dolmio ket and it has been a much loved MAT Value Share as at July 07), Express is perfect for those occasions favorite with Irish householders ever including Oriental, Indian and when consumers want a quick and since. Mexican cuisines. Though continuouseasy-to-prepare meal, without having The Chef range is best known for ly creating new flavours, Uncle Ben’s to compromise on taste or nutrition. its tangy tomato ketchup and famous are still very brown sauce. focused on their Chef Ketchup has been a firm profitable hero favourite with Irish consumers for products – decades. This tangy sauce is well Sweet and Sour known for its full tomato flavour and and Medium the mixture of spices used gives it an Curry sauces. extra kick. 140g of pure whole tomaUncle Ben’s toes are used to make 100g of Chef continues to Tomato Ketchup. bring new innoChef Brown Sauce claims the vation to its number one position in the Irish product range, Sauces market with a 60% share responding to (Source: ACNielsen MAT June ‘07). consumer Chef Brown Sauce has been a firm demands and favourite with Irish consumers and Uncle Ben’s sauces are perfect for busy families who demand changing even made an appearance in the hit great tasting high quality meal solutions which can be ready in minutes. trends. The latmovie, ‘Intermission’. Other products est example is the recent introduction in the Chef range include vinegar, The Dolmio Express range consists of of the new ‘Stir Fry’ sauce range, which beetroot and mixed pickles. a wide choice of delicious pasta sauces provides consumers with great tasting, The Chef brand has recently and pasta and, as well as catering to high quality meal solutions, that can undergone an entire brand readult needs, the Dolmio range also be prepared with minimal effort, meetdesign. The old familiar Chef can be includes an innovative range of ing consumers’ needs for speed and seen on the bottles once more. The microwaveable pasta and pasta convenience without compromising on new packaging still holds the core sauces for kids. The ‘My Dolmio’ range taste. With five new varieties to choose blue and yellow elements of the offers a complete meal solution for from across Oriental and Thai cuisines, original Chef packaging, but gives parents who struggle to find conventhere is something to suit everyone. the products that extra lift. A new ient, healthy food that kids enjoy. TV ad for Chef has also been proAll of these innovative new develduced and is currently on air. The opments, as well as Dolmio’s full Jacob Fruitfield Food Chef brand is owned and distribrange of products, including lasagne, Group uted in Ireland by the Jacob pasta bakes and stir-ins, the brand’s The Chef brand can be traced back to Fruitfield Food Group. memorable advertising, in-store pro1921 when Willwoods started making 66

RN September07Sauces & Condiments ●

Yakult Focus on Gut Health According

The Lakeshore range of cooking sauces from Boyne Valley has been relaunched with a fresh new look.

Lakeshore The Lakeshore range of cooking sauces from Boyne Valley has been relaunched with a fresh new look, which is both contemporary and appealing. The new look incorporates new bottles with a crisp, appetising identity. The marinade range includes Sticky Hickory Barbeque Marinade, Sweet Chilli & Garlic Marinade and a new addition, Hot & Spicy Marinade, destined to be a huge success. Lakeshore marinades are perfect for adding flavour to chicken, pork, beef and fish. They fit in with today’s busy consumer who wants to serve flavoursome food, but doesn’t necessarily have the time to make marinades from scratch. The launch will be supported by big trade promotion activity and a heavy duty marketing campaign, which will include PR, press and outdoor advertising.

to recent research undertaken by Yakult, 37% of Irish adults suffer from gut problems, with over half of these people attributing their gastric complaints to poor diet. A daily probiotic such as Yakult will provide the digestive system with an abundance of friendly bacteria (6.5 billion per bottle in Yakult’s case). Developed over 70 years ago by Japanese scientist, Dr. Shirota, today Yakult is the global leader in friendly bacteria. Available in two variants - Yakult and Yakult Light, the fermented, probiotic milk drink keeps harmful micro-organisms in check and encourages the growth of beneficial bacteria, which aid the body’s natural defences. Consumed daily by 25 million people in 27 countries, Yakult is virtually fat free, completely gluten free and just 51 cals (31 cals in Yalkult Light). In a category that is witnessing a slow down in growth (+2% YOY), Yakult is growing 18% YOY (Source: ACNielsen Ireland Update 12/08/07). Organised annually by Yakult, Gut Week aims to raise awareness of the vital role played by the gut in overall health and offers sound, practical advice in order to enable people to take good care of their digestive system. For further information relating to Gut Week 2007, please see www.gutweek.ie.

BR Marketing No salad is complete without Kühne salad dressings. Kühne Salatfix offers full flavoured dressing enjoyment in a range of flavours: Herb, Italian, American Caesar, Thousand Island and Balsamico. Kühne salad dressings are made using only the highest quality ingredients, with no additives or preservatives and come with a very competitive on-shelf price. To support the Kühne Salad dressing range, BR Marketing is offering consumers 100% extra free on Herb and Italian dressing.

Kühne Salatfix offers full flavoured dressing enjoyment in a range of flavours: Herb, Italian, American Caesar, Thousand Island and Balsamico.

Pictured at the launch of Gut Week are: Peter Hatton, Marketing Manager, Yakult; Ali Roche, aged 11 from South Africa; Dylan Flanagan, aged 11 from Trim.

RN September07Forecourt Focus ●

High Fly the XLs In Athenry Jarlath Cloonan runs two hugely successful XL Stop & Shop forecourt stores in Athenry, Co. Galway, which have just adopted the group’s vibrant new image.

Jarlath

Cloonan has been trading successfully in Athenry, Co Galway, for a decade. He has two forecourt shops in the town and both have recently adopted the latest XL Stop & Shop image. Jarlath worked in the oil distribution business before becoming a retailer, honing his entrepreneurial aptitude for the challenge of the retail grocery trade. By 1998, he had opened two forecourts in the town. In 2000, he sold his oil distribution business to Corrib Oil and concentrated full time on his grocery retail and forecourt business. Over the course of the last decade, the population of Athenry has doubled. The rail service in the town gets commuters into Galway in less than 20 minutes. Not only that, but Athenry itself is enjoying substantial prosperity. Jarlath and XL Stop & Shop have worked diligently to develop his businesses along with the town.

Tremendous Support “I have worked very successfully with XL Stop & Shop for a long time,” Jarlath explains. “Over the years, I have consistently received tremendous support from the group. It has been a supportive and co-operative partner, which is exactly

Jarlath Cloonan, store owner, and Val O’ Meara, Sales Development Manager, XL Stop & Shop, are pictured outside Jarlath’s store at The Arches in Athenry. 68

what I needed. This latest image is another example of the continuous efforts undertaken by the group in order to support its retail partners.” Jarlath kept trading through the introduction of the new image: “I didn’t want to inconvenience customers by closing the doors while the shops adopted the new image. I didn’t have to because of the great support I received from everyone involved in the project. We radically changed the layout of both shops during the revamp and there was always input available from the group for me to take advantage of.”

RN September07Forecourt Focus ●

Tailored to Local Market Jarlath’s forecourts in Athenry are tailored very specifically to the local market, with an emphasis on grocery lines as opposed to meal solutions. This is simply a reaction to market conditions. While all the schools in the local area are near Jarlath’s stores, every one of those schools operates a canteen service. As a flourishing market town, Athenry has a large number of greengrocers still thriving. Jarlath’s XL Stop & Shops have been finely tuned to complement the local conditions, rather than trying to compete head-on in an over-crowded area of the market. Jarlath explains, “By listening to our customers, we determined that more space should be allocated to grocery and through the use of category management, we have successfully managed our range offering. However, we do offer pre-prepared gourmet sandwiches, produced by a local Oranmore-based company, so if there are customers in need of a savoury snack, we can take care of it. With the sandwiches ready to go, it avoids any queues that could develop.”

Sales Upturn Since the revamps were completed, business has been extremely brisk, with Jarlath noting an upturn in sales of approximately 12% in both outlets: “In the end, it’s the figures that have to add up when making an investment like this and I am very happy with what we have achieved here and once a Lotto licence is finalised, the Group and I will have achieved everything we wanted from this development.” The development that has occurred in and around Athenry looks set to continue at pace into the future. When completed, the new M6 motorway link will pass far closer to the town than the old N6 route. An IDA Industrial Estate is being developed near to the town which will employ 3,0004,000 people, increasing Jarlath’s customer base significantly. With significant space dedicated to grocery in both sites,

Jarlath carries a wide variety of stock, including a significant amount of promotional offers. Jarlath is anxious to give added value to his customers and with BWG Foods’ buying power, the XL Stop & Shop promotional cycle ensures he has impressive offers across all categories every month.

Progressive Retailer “Jarlath is a very progressive retailer,” Val O’Meara, Sales Development Manager, XL Stop & Shop, tells RETAIL NEWS. “He has fully embraced the XL Stop & Shop concept and we are delighted to work with a retailer of his calibre. This new format is the standard now for XL Stop & Shop. The group has invested a significant amount of time, energy and expertise into its development and we are delighted it has worked so well for Jarlath.” With both of Jarlath’s stores being forecourts, fuel sales are equally as important as grocery, and the store owner enjoys a highly successful relationship with Maxol. “Like XL Stop & Shop, it is also a very professional and supportive organisation,” he notes. “Customers have commented on how well the colours of the Maxol and XL images complement one another. In terms of running my forecourts, the two companies complement each other very well also.” Jarlath and XL Stop & Shop have successfully fused the group’s expertise with Jarlath’s entrepreneurial spirit and extensive knowledge FA C T F I L E of the local market. If the fields Owner: Jarlath Conlon around Athenry Location: Dublin Road and ‘The Arches’ are famously Athenry, Co Galway low lying in Size: 1,250 square feet (The Arches) song, Jarlath’s Number of 12 Full time & part time shops are buckStaff: (The Arches) ing the trend and Opening 08:00 – 22:00, Monday–Friday; flying high. hours: 08:00–21:00, Saturday & Sunday.

RN September07Update ● Bulmers’ New Carbon Neutral Plant MINISTER for the Environment, Heritage and Local Government, John Gormley TD, recently visited the new Bulmers plant in Clonmel, one of the world’s first CarbonNeutral buildings. The new building houses three, high-speed bottling lines and uses the first CarbonNeutral steel cladding structure in Ireland and one of the few in existence in the world. The building has been developed under phase one of Bulmers’ €200m Capital Investment Programme. Brendan McGuinness, MD of Bulmers, is pictured at the new plant with Minister John Gormley TD.

PRM Increase Their Fleet THE PRM Group, one of the largest independent chilled and frozen food sales and distribution companies in Ireland, has recently taken delivery of three new refrigerated Gray & Adams box bodies based on 3.5 tonne Mercedes Sprinter chassis cabs. The order for these small box bodies has meant that the PRM fleet has now got a complete range of refrigerated vehicles from the Gray & Adams product portfolio, including rigid vehicles of different sizes, up to 26 tonnes, and a number of Gray & Adams refrigerated trailers. The new bodies will be used by PRM as part of their expanding van sales operation in both the North and South of Ireland, now in excess of 30 vehicles operating out of seven satellite sites.

Woodford Reserve Tasting CHRIS Morris, Master Distiller for Woodford Reserve (pictured), from the home of the Kentucky Derby, hosted a tasting and lunch to mark the closing stages of the Irish Summer Racing Flat season. Gold medal winner at the world’s three most prestigious tasting competitions, this superpremium small batch bourbon is the official Bourbon of the Kentucky Derby.

King Parrot Smoothie Launches AN exciting and unique new range of smoothie, bursting with vitamins and natural goodness, has launched in Ireland, with over 500 Irish stores now stocking the product in their freezers. King Parrot Smoothies are available in four flavours, contain up to four times as much vitamin C as the leading chilled smoothie, and provide two of the recommended ‘five a day’ portions of fruit and vegetables. King Parrot Foods has also been selected by the Disney Corporation as a key promotion partner in the launch of the Jungle Book DVD in November. Noel Davis, Managing Director of King Parrot Foods, is pictured with some of the new smoothie range.

Championship Campaign from Gala GALA’S latest marketing initiative, ‘Get into Championship form with Gala’, sees the Gala group teaming up with consultant dietician, Aveen Bannon, for a promotion, which will run across all Gala stores nationwide. The initiative coincides with Gala’s title sponsorship of the Gala All Ireland Senior and Junior Camogie Championships 2007, and consists of four bespoke health and wellbeing cards, created by Aveen Bannon, in-store PoS and a supporting healthy tips radio campaign which is running across 27 stations nationally. Pictured are Gary Desmond, CEO of Gala, and consultant dietician, Aveen Bannon. 70

RN September07What’s New ●

Irish Independent Book Collection

Calvita’s New TV Campaign

TO celebrate some of the finest in Irish female writing, the Irish Independent is launching a new book collection entitled ‘Irish Women Writers’. The fifth in its series of popular book collections, this inspiring collection brings together 20 of Ireland’s contemporary women writers and includes such names as Edna O’Brien, Claire Kilroy, Jennifer Johnston, Martina Devlin and Nuala O’Faolain. The series can be collected by Irish Independent readers during the promotion, which runs over 20 weeks, for just €4.99 with an Irish Independent token, found on page two of the newspaper.

CALVITA, from Breeo Foods, launched their new TV campaign during August with a three-week heavy TV burst. The 30-second TV ad was created by the producers behind Wallace & Gromit. The ad celebrates a modern and fun Calvita, dramatising that ‘kids grow up so fast these days’ and it may just be Calvita’s fault… as Calvita is packed with Calcium and Vitamins A&D, essential for good kid’s growth and development! This brand new television campaign, featuring five different creatives, will be on air for back to school. The heavyweight TV campaign was created by Cawley Nea TBWA and is costing over €500,000.

Ryvita Limited Edition Minis RYVITA are launching a new range of Limited Edition Ryvita Minis, starting with Thai flavour in October. The Limited Edition Thai Ryvita Minis, a sweet and spicy fusion with hints of chilli, lime, lemongrass and garlic, offer consumers a healthier snacking option that tastes great. As with all of the Ryvita Minis range, they have wholegrain goodness in every bite. The Limited Edition Thai Ryvita Minis contain 100 calories and only 3% fat per pack, making them a low fat product in accordance with FSA guidelines (a snack is only officially low fat if it’s 3% or under).

Toblerone Fruit and Nut KRAFT Foods has invigorated the Toblerone brand by launching a new Fruit and Nut variant. Toblerone Fruit and Nut combines the original recipe of Swiss milk chocolate, honey and almond nougat, with succulent whole raisins, and its launch forms part of Kraft Foods' biggest investment in the Toblerone brand for more than 10 years, with marketing support including a national TV ad, in-store sampling and strong trade promotions. Retailers can maximise Toblerone Fruit and Nut display by using customised point of sale units and is available in 100g and 400g tablets.

Juice the Thing from Kelkin! PICTURED at the recent launch of Kelkin NFC (Not From Concentrate) Orange Juice 330ml was Jack Homan (6). Kelkin launched the handy 330ml bottle of its popular NFC Orange Juice, just in time to fill back to school lunchboxes. Kelkin NFC Orange Juice is a 100% pure juice product, which contains no added sugar and no artificial colours, flavours or preservatives. The launch of the 330ml bottle has been supported with a national radio campaign, DART card advertising and sampling.

Ribena Socks It to Them

RIBENA is launching a superb offer, running in stores nationwide this month, offering consumers the essential MP3 accessory of the moment – a pair of Ribena MP3 socks, the ultimate in stylish protection for MP3 players and mobile phones. Available in two funky and fashionable colours, the upto-the-minute premium is free with each purchase of 2 bottles of Ribena 500ml. Creating maximum excitement and uptake around this generous offer, the initiative will be spotlighted by eye-catching PoS material in retail outlets nationwide. 71

RN September07Shelf Life ●

Shelf Life WALKERS’ Marketing Manager, Nicola Wells, shares some lunchtime fun with David Egan and Eve Malone, winners of a trip to New York, courtesy of Walkers. A recent survey by Walkers found that Irish workers want more fun at lunch times…so that’s exactly what Walkers delivered. An exciting 98FM promotion invited Irish companies to be in with the chance of winning a ‘Fun Friday Picnic’ at Merrion Square, with one lucky worker (Dave Egan) winning a trip to New York, while a promotion with Herald AM saw Eve Malone, also winning a trip to the Big Apple.

DAVID Field has been appointed to the position of Account Director and Head of Marketing with Pigsback.com. David was Product Group Manager for the Yoplait portfolio for two and a half years and before this was with Superquinn for seven years in a number of commercial roles, including Business Development Manager for Convenience.

PICTURED at the presentation of the Ulster Bank Invoice Finance and Irish Independent Business Achievers Award for July are (l-r): Pat Maher, Executive Director, Enterprise Ireland; Gerry Holland, Senior Relationship Manager, Ulster Bank; David Pierce, Director of Corporate Banking and Head of Inward Investment, Ulster Bank, with Peter and Richard Cullen, Directors of Aran Candy, winners of the Award. Aran Candy, which produces The Jellybean Factory brand, is now among the largest producers of gourmet jellybeans worldwide.

BREEO Foods’ premium cooked meats brand Shaws, has for the first time broken through the €50m retail sales level for a 12-month period, firmly establishing Shaws as one of the most successful premium food brands on the Island of Ireland. Shaws is has grown by over 50% in the last five years.

CORRIN Hill scooped two Great Taste Awards this year at the Great Taste Awards in London, the definitive standard for speciality food and drink from the UK and Ireland. Corrin Hill won the awards for their Vanilla Ice Cream, one of just two vanilla ice creams to win a Great Taste Award this year, and their newly launched Corrin Hill Frozen Yogurt.

WINNING Streak Double Your Money, the very popular scratch card and television Gameshow, returned to RTÉ television screens on September 8. The top prize, which can be won instantly, on the Winning Streak Double Your Money scratch card is €100,000, with the TV Gameshow offering a top prize of €500,000. Pictured are (l-r): model Ruth O’Neill; National Lottery Chief Executive, Dermot Griffin; and model Roberta Rowat at the launch of Winning Streak - Double Your Money. SILVER Hill Foods has received another accolade for its award winning duck range. The British Frozen Food Federation presented Silver Hill Foods with an Award in the ‘Best New Main Course/Meal Centre Product – Traditional Style Cuisine’ for its Duck Leg Confit, in their Annual Awards for New Products 2007. The awards are considered to be the Oscars of the frozen food industry. This is the latest in a long line of awards for the Steele Family and Silver Hill Foods, the family-owned duck processors, based in Emyvale, Co. Monaghan, who were recently awarded the Bord Bia Duck Quality Assurance Scheme.

A month long celebration of all that’s best about Irish magazines will kick off on October 1, 2007, organised by the Periodical Publishers’ Association of Ireland. Irish Magazine Month will showcase the vast range of Irish magazines produced by Irish magazine publishers. This pioneering initiative is designed to inform and educate consumers about Irish magazines, to increase sales of the category and to boost footfall in-store. The initiative is a cross industry collaboration bringing together publishers, retailers, wholesalers and distributors. The promotion will take place in almost 2,000 retail outlets which will be provided with PoS packs by PPAI to dress their magazines displays. To thank retailers for their support of this initiative, PPAI has fabulous prizes to a luxurious Irish Spa to give away to five lucky retailers. All they have to do is register on www.irishmagazinemonth.ie when they have displayed the point of sale material and they will be in with a chance to win. 72

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