Retail News Jan/Feb 2011

Page 1


January/February11Contents

■ inside view

Dawn of a New Era With a new Government on the way, 2011 could be the start of a new era in Irish grocery retailing, as both Fine Gael and Labour have revealed some very interesting plans for small and medium sized businesses, including the retail grocery sector. Both Labour and Fine Gael have committed to the abolishment of upward-only rent reviews, while Fine Gael’s policy proposals also include a VAT reduction of at least 1.5% of the more labour intensive 13.5% VAT rate, as well as a strategy to reduce Local Authority rates, which would be welcomed by Ireland’s retail community. See our full story on Page 4. One of the most contentious issues at the moment is the high cost of wages, with the ongoing review of the JLC rates. The Government has established an independent review of the framework of statutory wage setting mechanisms, which will be conducted within a short timeframe, expected to be approximately six weeks from February 25, 2011, the closing date for the receipt of submissions. See full story on Page 5. Elsewhere in this issue, Karen Meenan advises on how to maximise sales from part works, which are particularly prevalent at this time of year (Page 12), Delia McMahon, Associate Solicitor with William Fry, writes on the importance of providing high quality customer service to ensure business survival (Page 18) and we report on the winners of the BIM Seafood Circle 2011 Awards (Page 19), while motoring correspondent Padraic Deane provides the annual RETAIL NEWS Commercial Transport Supplement (Page 33-38), with all the advice you need on choosing the right commercial vehicle for your business.

FireMagic from Bord na Móna Bord na Móna Fuels Ltd, the largest supplier of solid FireMagic Fire Maker’, Maker its fuel in Ireland, has launched ‘FireMagic revolutionary new product innovation that guarantees the fastest and fullest ‘real’ fire within minutes. For the first time with a fire making product, consumers will be able to light and leave! Quicker to ignite and generating heat faster, FireMagic Fire Maker is Bord na Móna’s biggest new product development, representing a total investment of over €1m. The exciting new ‘light & leave’ product is set to be a real game-changer within the category, coming with a cast-iron guarantee - FireMagic Fire Maker will light first time, every time, and will create the intense glow of a full, real fire within 15 minutes of first lighting it. The product is the first of its kind in Ireland and ultimately takes the hassle and guess-work out of making real fires from scratch. Not only is FireMagic Fire Maker ideal for open fires and stoves, it is also suitable for use in barbecues. It creates an excellent easy lighting base for charcoal, giving a hassle free approach to a real barbecue. Kerosene-free, FireMagic Fire Maker is a key new product in Bord na Móna’s eco-friendly range of solid fuel solutions. It’s quick, clean and economical to use, providing a convenient substitute for other fire making products such as kindling, paper and sticks. “Our research shows that Irish people love real fires but find they are too much work and it takes them too much time to build an aesthetically pleasing real fire,” noted June Dowling, Marketing and Business Development Manager at Bord na Móna. “Our new FireMagic Fire Maker product is the perfect solution for consumers who want to build a perfect, real fire quickly and conveniently. Thanks to FireMagic Fire Maker, Irish homemakers can now look forward to a perfect fire any time they wish.” FireMagic Fire Maker is available through Allegro Distribution or Bord na Móna Fuels Direct on 1850 744755.

“Over 53 years

.

serving the Irish Kathleen Belton, Editorial & Marketing Director

grocery trade.”

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

johnwalshe@tarapublishingco.com

Advertising: Kathleen Belton Pat Murray

kathleen@tarapublishingco.com pat@tarapublishingco.com

Chief News Reporter: Pavel Barter

Wine Correspondent: Jean Smullen

T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2. Tel: (01) 2413095 Fax: (01) 2413010 Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Subscription to Retail News: €95 plus VAT Email: aoife@tarapublishingco.com Origination by: Rooney Media Graphics

Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

June Dowling, Marketing and Business Manager and John Keogh, Director of Horticulture Division at Bord na Móna

1


HP ENABLES RETAILERS TO DRIVE FOOTFALL AND INCREASE PROFIT Ireland’s grocery retailers could stand to benefit from opportunities in the growing retail photo publishing market, estimated to be worth €56 billion by 2013. (1) In-store retail publishing transactions can provide attractive margins for retailers while also driving footfall in stores. The Retail Publishing Solutions offering allows users to create their own personalised photo products in-store, on demand and within the hour. Products such as photobooks, posters, greeting cards and other creative photo merchandise can all be produced using the HP system. A typical photobook would cost €19.99, a poster €17.99, while a higher end product such as a leather photobook would cost €39.99. The HP Retail Publishing Solutions offering has the potential to yield excellent sales figures within a short timescale, with profit margins as high as 60 or 70 percent in certain cases, depending on the product. The new advances in photo publishing technology, including the move from wet systems to a dry system mean that creative photo publishing products can now be installed in everyday retail locations and are better for the environment. HP Retail Photo Publishing technology represents the latest in photo printing technology. Its revolutionary systems deliver solutions to retailers that are versatile, easy to use, and will ensure retailers don’t miss out on this rapidly growing business opportunity.

Supplied through Irish distributor Hahnel Industries, the HP Photo Center is the award winning combination of hardware and software of HP’s Retail Publishing Solutions. It allows users to create their own personalised photo products in-store, on demand and within the hour. Products such as photobooks, posters, greeting cards and other creative photo merchandise can all be produced using the HP system. It is fully interactive and simple to use and customers can quickly and easily input their photos directly from CD, DVD or memory card, and

then design and print whatever products they like, including CDs. At the leading edge Commenting on the new technology, Chris Hahnel, Managing Director, Hahnel Industries, explained why he believes the photo merchandise business is becoming increasingly important now and will continue to do so in the future. “The amount of images being taken today is far in excess of anything that has ever been taken before. They’re being captured on cameras, on phones, and on other devices, and what’s happening now is that there are also many more things that people want to do with their images, not just photographs.” HP’s Retail Publishing Solutions are also at the leading edge of the shift in photo printing technology from wet systems to a dry system; “a fundamental change in the way photographs are going to be produced from now on,” says Hahnel. Compared to conventional photo development using chemical based processes, HP’s inkjet-based Minilab uses less power and space, no water, is much easier to operate, does not require chemical process stability, and can be used in locations you would not want a chemical system, for example close to food. Further, with HP’s inkjet-based Minilab retailers are spared the typical odour that comes with chemical processes. On top of this, with this HP solution retailers need not worry about waste: HP’s Planet Partner Programme collects empty ink cartridges – so there is no need to store used chemicals that require careful recycling. “Overall, the benefits of this solution centre on its core technology. HP’s solution enables quality creative photo products to be produced instantly and in a far more consistent manner than ever before. Furthermore, they can be produced in-store by the customer themselves. It’s incredibly easy to use, almost as easy as running a photocopier or a standard inkjet printer.” In terms of value to the retailer, the creative products offered by HP’s Retail Publishing

Solutions attract a high margin, as well as increased footfall to the store. Retailers that have implemented the retail publishing approach are experiencing significantly better than industry average year-over-year growth, by as much as 60 to 70 percent depending on the product. “We have shown with existing installations that within a period of three years, not only will the hardware have paid for itself but will already have moved into a substantial profit-making situation” says Hahnel. Solutions great and small Nico Van Velden, spokesperson for HP Retail Publishing Solutions points out that retailers can choose different solutions depending on the size and needs of their store, ranging from the largest, the ML1000D Minilab, to a simple instant print kiosk, which requires relatively little space and no attention from staff. “The HP Kiosk is an especially interesting product for supermarkets, as customers can use it by themselves,” says Van Velden. “However, if the retailer is looking for the additional margin which comes from the creative products and large format prints, then the ML1000D is the best product. It really depends what kind of business you want to attract. HP caters for small and large stores.” Smaller equipment can even be stored behind the counter or in the back. And thanks to the scalable nature of HP’s Retail Publishing Solutions, installations can be added to the offering over time. Whatever the solution, “It’s as simple as using a home printer,” says Van Velden, so no need for specialist training. “A staff member would require a maximum of one hour training to learn how the system works and how to replenish the cartridges, because it is that easy.” Retailers now have a real opportunity to capitalise on the growing success of the retail photo publishing market. There is a viable choice between offering traditional prints or investing in newer, creative technologies. The latter investment will reduce costs in the long term; emphasise the ‘self-service’ ethos that many retailers are moving towards and ensure retailers embrace a growing trend as the photo finishing market continues to grow. (1)

Source: Retail Publishing Solutions; HP analysis


January/February11Contents

Contents January/February 2011

News 4Calls for Minimum Pricing on Alcohol Sales; Retail High on the Agenda for Election.

5Waging War on Retail Pay Increases; Aldi To Open in Sandyford; Tesco Threatens Irish Publishers.

12 Karen Meenan’s News Rack 12Karen Meenan reports

4 6Bad Weather Sees Consumers Turn to Local Shops. 7FDII Calls for Grocery Code of Practice; RAS Commends Customs Over 6m Cigarette Seizure; New Smart Packaging to Cut Food Waste.

on some of the big part works launches this season, and advises on how to get the best return from this valuable sector.

Customer Service 18Delia McMahon, Associate Solicitor in the Litigation and Debt Recovery Department of William Fry, writes on the importance of enhancing customer service relations.

2011 Award Winners were announced recently, highlighting the cream of seafood retailers in Ireland. We speak to some of the winners and chart the evolution of the BIM Seafood Circle.

19

On The Vine 28Jean Smullen looks at the performance of French wines on the Irish market, and highlights some muststocks for your shelves.

Commercial Transport 33Motoring correspondent Padraic Deane reports on the movers and shakers in vans and light commercial vehicles, including all the award winners in the Continental Irish Van of the Year Awards 2011.

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

Regulars 9 Industry News 27 Drinks News 39 What’s New Sectoral Reports

18

16 Pasta & Sauce 22 Household Care: Paper

8IBEC Reveals Jobs Manifesto; New Bank Cards on the Way; Barry & Fitzwilliam Wins Top Award.

33

BIM Seafood Circle Awards 19The BIM Seafood Circle

Products

28

26 Household Care: Killeen 30 Healthy Options 3


January/February11News

Calls for Minimum Pricing on Alcohol Sales A NATIONAL charity for alcohol-related issues has called upon retailers and smaller off-licenses to support a campaign for the introduction of a minimum price on alcohol. Fiona Ryan, Director of Alcohol Action Ireland, told Retail News that such an initiative amongst independent retailers will create a level playing field with the multiples, which often use alcohol as a loss-leader. “Smaller off-licenses and outlets are at a significant disadvantage because when the big boys decide to go on a major loss-leading initiative in relation to alcohol, they either have to drive their price down to compete or they lose out,” she said. “Potentially, it could be very good for retailers because they’re not forced into a price war with other competitors. They can keep alcohol at a

certain level and guarantee profits.” Alcohol Action Ireland has also called for tighter restrictions on alcohol promotions, citing the economic and social costs of alcohol-related issues. According to the Chief Medical Officer of Ireland, Dr Tony Holohan, 2,000 hospital beds are occupied every night for alcohol-related reasons. 10% of all general in-patient costs, 14% of psychiatric hospital costs, 7% of GP costs, and up to 30% of emergency department costs are alcohol-related. This adds up to an estimated annual cost of €3.2 billion to the Exchequer. “We know, from the World Health Organisation, that price influences consumption,” said Ryan. “If price is reduced, alcohol consumption generally goes up. The reality is that the cheapest alcohol in Ireland is available from multiple retailers. At the moment, a woman can reach her low risk weekly drinking limit for €6.30. A man can do it for under €10.” Alcohol Action Ireland is not alone in their calls for a minimum price. The Vintners Federation of Ireland believes it is the only way pubs will survive the competition.

“Low alcohol prices in supermarkets are devastating the pub trade,” Gerry Mellett, Vintners Federation President, told RETAIL NEWS. “The consumer is making the comparison of a 75c bottle of lager against €3.60 in the pub, but they’re not treating like with like. It’s a totally different experience when you drink something in a pub. Drink is about 5% of the total sales of any supermarket - they can use that 5% as a loss leader and they still have their core business. Whereas a publican’s total business is alcohol, so he hasn’t got anywhere else to go to recoup losses.” Any proposed minimum price would take into account a number of different issues, such as the cost of alcohol-related crime, said Ryan. Recent attempts to introduce a similar law in Scotland fell apart after in-fighting between political parties. Scottish ministers cited the example of an attempt to set a minimum price for tobacco in Ireland, which was deemed in breach of EU competition law. However, the Scottish government said that this decision does not relate to minimum pricing for alcohol, which is capable of complying with European law.

Retail High on the Agenda for Election POLITICAL parties appear to be considering the plight of small to medium businesses in the run-up to the 2011 general election, according to industry representatives. “I think they have acknowledged that retailers are in difficulty,” Vincent Jennings, Chief Executive of the Convenience Stores and Newsagents Association (CSNA), told RETAIL NEWS. “Each one of them, more so than any other election I can remember, have made a series of specific recommendations, promises, or doffing of the cap to retail.” Tara Buckley, RGDATA Director General, concurred: “All three of the main parties are talking a lot more about recognising that smaller and local businesses are the backbone of the economy. Now we want to see it’s not just puff and words, but there is policy and commitment to back up what they’re saying.” Both Labour and Fine Gael have committed to the abolishment of upward-only rent reviews. Labour have also pledged 4

to retain the existing Retail Planning Guidelines and maintain the retail planning cap. The Green Party have put forward proposals to support small businesses, including a ban on upward-only rent reviews, new bankruptcy laws and cuts to commercial rates. Wages are also high on the agenda. “There is a divergence of attitude as to how wages should be managed or controlled,” said Jennings. “Nobody is coming out and saying the JLC rates should be removed, but there is an element of acknowledging the need for reform. Of course, reform can be anything from cutting a toenail to amputation.” Most importantly, retail needs a change in governmental mindset, said Buckley: “We need a new administration that will recognise and value the contribution that small and local businesses make.” Fine Gael’s policy proposals also include a VAT reduction of at least 1.5% of the more labour intensive 13.5% VAT

Vincent Jennings, Chief Executive of the Convenience Stores and Newsagents Association.

rate, as well as a strategy to reduce Local Authority rates, which would be welcomed by Ireland’s retail community. “The mix of measures being proposed in the policies of Fine Gael and the Labour Party address the key issues of commercial rents and wage costs in the retail industry,” summed up David Fitzsimons, Retail Excellence Ireland Chief Executive Officer. “They propose practical and straightforward measures that, if implemented, will provide a significant boost to many Irish retail businesses.”


January/February11News

Waging War on Retail Pay Increases

GROCERY retailers are in financial limbo, as discussions continue over the latest Retail Grocery and Allied Trades Joint Labour Committee (JLC) pay increase. As of January 1, 2011, up to 100,000 workers employed in the retail grocery sector are entitled to a 1.25% pay increase. Although employers are legally required to pay these increases, trade associations and retail lobbyists are awaiting the outcome of a review of the JLC structure.

Retail Ireland Director, Torlach Denihan.

The Government has, however, in line with its commitment in the National Recovery Plan, 2011-2014, established an independent review of the framework of statutory wage setting mechanisms known as Employment Regulation Orders (ERO) and Registered Employment Agreements (REA). The Review will be conducted jointly by Kevin Duffy, Chairman of the Labour Court, acting in an ad hoc capacity, and by Dr Frank Walsh, Lecturer, School of Economics, University College Dublin. The Review will be conducted within a short timeframe, expected to be approximately six weeks from February 25, 2011, the closing date for the receipt of submissions. “We need to ensure that statutory wage fixing mechanisms work effectively and efficiently and that they do not have a negative impact on economic performance and employment levels,” said Mary Hanafin TD, then Minister for Enterprise, Trade and Innovation, announcing the review, which has been broadly welcomed by the retail industry. RGDATA said that this review is long overdue and hoped that it will be concluded quickly. RGDATA Director General, Tara Buckley said that the JLC structure is inhibiting job retention, damaging the competitiveness of retail shops and will frustrate new job creation. “Local businesses are being forced into a position where they have to raise wages at a time when everyone knows they are not making money, but losing money,” Buckley told RETAIL NEWS. “We think it’s fair enough if [a retailer] awaits the outcome of the review. Now the minimum wage has come down,

Tesco Threatens Irish Publishers TESCO has threatened Irish book publishers that it will remove their titles from sale in Tesco stores nationwide if certain titles are reserved for traditional bookshops. The controversy followed the publication of the bestselling ‘The FitzPatrick Tapes’, by Tom Lyons and Brian Carey, which was distributed to

Eason and selected bookshops but not to Tesco or other supermarkets. In a letter to all Irish book publishers, Tesco’s book distribution company, Reedmoor, warned, “if we find evidence of this happening (again), the offending publisher will have all their titles removed from sale and returned”.

Tara Buckley, RGDATA Director General.

there is a €2 differential between the starting wage for an adult worker in the retail grocery trade and the minimum wage. Before, whenever the minimum wage went up, the JLC rates went up. As a matter of justice, if the minimum wage comes down, the JLC rates should come down.” Retail Ireland, the IBEC group that represents the retail sector, also welcomed the review, with Director Torlach Denihan noting, “When IBEC met the EU/IMF delegation last November, it recommended the urgent overhaul of the JLC system. It is very positive that a fundamental review is now taking place under the joint EU-IMF Programme for Ireland. The JLC system is destroying jobs and is unnecessary because of the national minimum wage. “Even without wages having been increased, due to the high operating costs in place across rent, existing pay levels and so on, quite a number of businesses have gone under,” Denihan told RETAIL NEWS. “It is without doubt that further reductions will close more businesses.”

Aldi To Open in Sandyford ALDI is set to open a new store in Sandyford, Dublin 18. The anchor store, which will open in spring, is the first major letting at The Boulevard@ Rockbrook, which is set to form part of a planned new town centre with 44,000 square metres of shopping, with apartments overhead. 5


January/February11News

Bad Weather Sees Consumers Turn to Local Shops THE bad weather was the single biggest influencing factor over shopping behaviour during Christmas 2010. But while the underlying recession and financial constraints tempered consumer spending, the Arctic conditions were not all bad news for small retailers, as 65% of people shopped locally. According to Efficient Consumer Response (ECR) Ireland, there was a concerted effort to support Irish and small businesses. Kantar Worldpanel in Ireland, who covered the 12 weeks ending 26 December, 2010, found that the snow benefited local business. “One clear point from the grocery market figures is that the poor weather in the build-up to Christmas provided a boost for local retailers, with SuperValu and the symbol groups posting strong sales performance,” David Berry, Kantar Commercial Director, explained to RETAIL NEWS. “This places increased importance on the ability to react to changing weather conditions, particularly at key times of the year. A longer trend is that retailers who continue to open new stores - such as Tesco, Lidl and Aldi - continue to benefit through increased market share.” Reports on the Christmas period showed mixed results. According to Kantar, the Irish grocery market remained in growth at 2.1%, slightly ahead of the previous period (1.6%), as inflation fell from 4.2% to 3.9%. However, Retail Excellence Ireland’s Irish Retail Industry Performance Review for Q4 2010 survey found that sales were down 3.7% in November and 3.7% in December when compared to the same period in 2009. Kantar’s report revealed that Tesco continued to be the main beneficiary, increasing its share to 27.2%. SuperValu increased its market share by 3% to 19.9%. Aldi increased its sales by €15m, particularly across the alcohol, ambient food and fresh and chilled sectors, while Lidl’s growth slowed from 9.4% to 6.7% in the run-up to Christmas. Meanwhile, a price comparison survey undertaken by SmartShopper.ie found that Dunnes Stores was the cheapest supermarket. Christmas 2010 may also teach us about the year ahead, Declan Carolan, General Manager at ECR Ireland, told 6

RETAIL NEWS: “It has managed people’s expectations for the coming year. A lot of people didn’t get out to shop where they wanted to shop and they had fewer occasions to shop. They were forced, from the weather restrictions, to do with less. Some of the qualitative comments suggest it set them in the right frame of mind going into 2011.” Own brands performed well at Christmas. Prior to the festive period, only 29% of consumers expected to buy own brand. In the event, 37% purchased these products. “Each of the main retailers continues to place an emphasis on the money shoppers can save by switching to their own brand goods,” said Kantar’s David Berry. “As household disposable income continues to be strained, I anticipate the growth of own label to be a continuing factor throughout 2011.”

This could come at a price for premium retailers. Over Christmas, Superquinn’s market share dipped from 6.4% to 6.1%. “2011 may prove difficult for retailers who rely on premium brands, as shoppers look for products offering value for money,” said Berry. “However, if we look across the water to GB, we can see that Waitrose have continued to gain share and grow throughout the recession. If consumers are less likely to treat themselves in restaurants, then there is potential to encourage more in-home treats. Premium brands can satisfy this demand.” Declan Carolan reckons retailers can learn a lot from Christmas 2010, as consumers are now organising, planning and trying to stick within budget. Marketing and promotion, meanwhile, is becoming increasingly important. “One of the things that came out of our survey was people’s shopping alertness,” he concluded. “They try to notice all the promotions in the run-up to Christmas. Many products don’t have a huge amount of advertising, and instead use quick one-day guerrilla marketing tactics. But a lot of the respondents are now much more alert and receptive to listening to some of the media messages about promotions.”

12 Weeks to 27 December 2009 % *

12 Weeks to 26 December 2010 % *

change %

Total Outlets

100.0%

100.0%

2.1%

Total Multiples

86.8%

87.5%

2.9%

Tesco

26.1%

27.2%

6.5%

Dunnes

23.9%

23.5%

0.5%

Superquinn

6.9%

6.1%

-9.4%

SuperValu

19.7%

19.9%

3.0%

Total Discounters

8.4%

9.3%

12.6%

Aldi

3.0%

3.6%

22.9%

Lidl

5.4%

5.6%

6.7%

Other Multiples

1.8%

1.6%

-13.2%

Total Symbols

5.2%

5.3%

5.3%

Asda & Sainsbury Cross Border

2.9%

2.1%

-25.5%

Other Outlets

5.1%

5.0%

-0.3%

* = Percentage Share of Total Grocery The latest grocery market figures from Kantar Worldpanel in Ireland.


January/February11News

FDII Calls for Grocery Code of Practice FOOD and Drink Industry Ireland, the IBEC group that represents the food sector, has called for the introduction of a compulsory Code of Practice for the grocery industry, as part of its ‘Policy recommendations for the food and drink sector’. “The food sector has the potential to make a major contribution to economic recovery, but it is vital that the right policies are pursued,� argued FDII Director, Paul Kelly. “The next Government must take steps to reduce

FDII Director, Paul Kelly.

business costs, introduce a compulsory code of practice for the grocery sector and ensure that climate change policy supports a sustainable food production base in Ireland.� Kelly called for a number of policy measures that must either be maintained or adopted by the next Government “to help Ireland’s most important indigenous industry fulfil its growth potential�, including: s IMPROVEMENT IN COST COMPETItiveness through reductions in energy, transport and waste costs; s CLIMATE CHANGE POLICY THAT REFLECTS the need to maintain a competitive and sustainable food production base in Ireland; s A WORLD CLASS FOOD SAFETY REGIME THAT ensures that our regulatory and compliance costs are benchmarked against and in line with competitor economies; s A COMPULSORY CODE OF PRACTICE ombudsman for the grocery sector; s A STRONG FOCUS ON HARNESSING THE innovation potential within the sector in the Strategy on Science, Technology and Innovation review;

s

s

A MULTI STAKEHOLDER APPROACH including the food industry, to dealing with nutrition and health issues including obesity; AN 3-% FORUM TO IDENTIFY NECESSARY supports (capital, skills and knowledge base) to target growth companies in the sector.

New Smart Packaging to Cut Food Waste SCIENTISTS at the University of Strathclyde have developed a new type of modified atmosphere food packaging with an “intelligent� plastic indicator which can tell when food is starting to go off. The indicator changes colour when the food is about to lose its freshness because the packaging has been broken or damaged, has passed its best before date or has been poorly refrigerated. The researchers believe that the new packaging will help to cut down on food waste.

RAS Commends Customs Over 6m Cigarette Seizure RETAILERS Against Smuggling, the representative group for Ireland’s tobacco retailers, has commended the work of the Revenue’s Customs Officials for the seizure of 6m cigarettes in Coolock, Dublin, recently. The seizure, which was a result of a surveillance operation, has an estimated retail value of â‚Ź2.5m and a potential loss to the exchequer of â‚Ź2.1m. The consignment of cigarettes, which arrived into Dublin Port from China, included cigarette brands Palace, Lambert & Butler and Marlboro. Retailers Against Smuggling spokesman, William Hanley, said: “We would like to congratulate and thank Revenue’s Custom Officials for their work in this seizure. For too long now the retail sector has been targeted by national and international criminals. These people are flooding the Irish market with cheap, unregulated cigarettes that are depriving both the retail sector and the Irish State of hundreds of millions of euro annually. There is a major criminal element to smuggling and this is having a detrimental affect on the industry. In simple terms, criminals are closing shops and ruining communities as a result of tobacco smuggling.â€? Meanwhile, the Irish Tobacco Manufacturers Advisory Committee (ITMAC) believes that courts are failing to inflict sufficient punishments on people caught selling illegal cigarettes in Ireland. A new ITMAC report shows a decrease in the punishments dished out. Between April and June, 2010, the average fine for someone convicted of selling illegal tobacco was â‚Ź3,130. This fell to â‚Ź2,820, between July and September, 2010. ITMAC responded: “A gang can make a profit of â‚Ź1m on every container of illegal cigarettes that make it into the country. However, the average fine in the latest figures from the Revenue Commissioners is a paltry â‚Ź2,820. This is no deterrent to these criminals that are operating in communities all over Ireland.â€? 7


January/February11News

IBEC Reveals Jobs Manifesto IBEC has outlined its Jobs Manifesto for election 2011, calling for a reformation of the labour market and welfare systems. The report suggests numerous reforms, which any new government should implement during its first 100 days. These include introducing a loan guarantee scheme for SMEs, a property tax to fund local authority services, and a reduction in commercial rates. “The most important task facing the next government is getting people back to work,” said IBEC Director General Danny McCoy (pictured). “Every decision must take into account the impact on

New General Manager at PJ Carroll

PJ CARROLL have announced the appointment of Robert Derkacz as General Manager. Robert, who has a career at British American Tobacco (BAT) spanning more than 15 years, noted: “I’ve been lucky enough to work in a number of countries during my career at BAT. This new position as General Manager at PJ Carroll is a wonderful opportunity for me to get to know the tobacco trade in Ireland and share my international experiences and commercial best practice. I’m excited about working with the team and all our trade partners to keep the tobacco category strong and growing despite the many challenges we face, not least of these being the very high level of illicit trade which is negatively impacting on our businesses.” 8

jobs. The right policies will help restore our economic fortunes, but the wrong ones will prolong the economic pain. The EU/IMF loan agreement will limit a new government’s room for manoeuvre, but there is an opportunity for a fresh approach. Recent years have been dominated by crisis management - what we need now is a plan for the future.”

New Bank Cards on the Way NEW banking cards which allow consumers to make small purchases of up to €15 per item (up to a maximum of €45) by simply waving them in front of a terminal, in a similar way to Luas and Dublin Bus cards, are expected to be introduced later this year. The new contactless debit cards have been created by Visa Europe, whose debit cards are used by Permanent TSB and Ulster Bank, with Bank of Ireland rolling them out to customers later this year.

Barry & Fitzwilliam Wins Top Award BARRY & Fitzwilliam has been awarded the prestigious Cork Chamber of Commerce Company of the Year Award (SME Category for under 100 employees), which recognises strategic vision, innovation, performance, sales, marketing and sustainability. “This award means a lot to us, and in particular to our loyal staff, who have worked tirelessly with us to cement our position as a market leader in the Irish drinks distribution industry,” said Michael Barry, Managing Director at Barry & Fitzwilliam. “I’ve always believed that we have a fantastic team and it is a great thrill to be recognised in your own home town, the place where it all began in 1982! With over 100 premium international brands and an expected turnover of €70m in 2011,

Michael Barry of Barry & Fitzwilliam (centre) pictured accepting the Cork Company of the Year Award from Vodafone Ireland’s Business Director Anne O’Leary and Cork Chamber President Ger O’Mahoney.

we are always adding to our portfolio in order to enhance our reputation as a key player in the industry.”

Insomnia Displays Calorie Content in Trial Run THE Insomnia Coffee Company, which has many franchises in SPAR stores, has started displaying the calorie content of its hot beverages and snacks on its menus in one of its busiest stores on Dublin’s Abbey Street. The initiative is initially a trial run but if it proves successful, the company plans to expand it to their store network nationwide.


January/February11Industry

News

Herlihy Centra Group Continues to Expand THE Herlihy Group continues to grow with the announcement of its acquisition of the Centra store in Millstreet, Cork, formally known as Dennehy’s Centra. The store, which has been providing for the people of Millstreet for over 20 years, now becomes the sixth store in the Herlihy Group and will see a significant investment programme over the coming months to develop the store in line with the rest of the Herlihy stores. The new Herlihy’s Centra will continue to employ 24 people from the local community and will offer customers an extensive range of fresh fruit and vegetables, a top class fresh meat offering, a new bakery with fresh bread and cakes, a large deli and an offlicence offering a wide selection of wines and beers. Paul Herlihy is pictured with store manager, Joanne Dennehy and the Centra Millstreet team

Flahavan’s Sponsor Skipathon 2011 RATHFARNHAM Parish National School were on hand to provide tips on skipping to John Noonan, Sales and Marketing Director of Flahavan’s, and Michael O’Shea, CEO of the Irish Heart Foundation, at the announcement that Flahavan’s will sponsor Skipathon 2011, the Irish Heart Foundation’s health awareness and fundraising initiative. “We’re delighted to support the Irish Heart Foundation for Skipathon 2011,” noted John Noonan. “It is an excellent programme that highlights the importance of daily exercise for young kids in a fun way. Early participation in exercise is vital for developing healthy lifestyle habits later in life.” See www.irishheart.ie or www.facebook.com/flahavans for more information.

Appointment at Connacht Gold CONNACHT Gold Co-op has announced the appointment of Helen Brophy as General Manager of its Consumer Foods Business. Helen, who is currently Chief Executive of the National Dairy Council (NDC), will take up the new senior management position on April 14, taking over from Mary Fox, who has been appointed General Manager Group Strategic Development with responsibility for driving the co-op’s Strategic Plan. “Our consumer foods business has experienced strong growth and market penetration, particularly over the past year,” said Connacht Gold Chief Executive, Aaron Forde. “Our butter brands are continuing to gain market share and we have secured new business with our major customers. Our strategic plan sets ambitious targets for further product innovation and growth. The appointment of a person of the calibre of Helen Brophy will bring significant skills to drive the successful delivery of these plans.”

Londis to Sponsor ‘Come Dine With Me’ on TV3 LONDIS have been announced as sponsors of the hit UK TV series ‘Come Dine With Me’, which made its debut on TV3 in January. The sponsorship will be used to demonstrate the accessibility of, and wide range of products available in Londis stores, and will be supported by a large-scale integrated PR and marketing campaign, including specially developed TV stings. The sponsorship began in January, with TV3 airing the UK series for 12 months, 5 days a week from 18:30 to 19:00. The sponsorship also includes the UK Celebrity version of ‘Come Dine With Me’ which airs every Wednesday at 9pm, and the first ever Irish version of ‘Come Dine With Me’ which will launch later in 2011. Pictured at the announcement are (l-r): Alan Hughes, TV3 presenter; Sue O’Grady, Londis; Deirdre O’Brien, TV3 Commercial; Sinead Desmond, TV3 presenter; Gillian Rigley, Londis; and TV3 presenters Conor Clear and Sybil Mulcahy.

SuperValu Increases Payments to Irish Pig Farmers FOLLOWING recent discussions with the IFA on the difficult position of Irish pig farmers, SuperValu has taken the decision to increase the price it will pay for Irish pork and bacon cuts. The price increase is aimed at ensuring sustainable Irish supply, securing jobs in the sector and protecting one of the nation’s favourite meats. The increase that SuperValu will pay for its Irish pork and bacon cuts will have no impact on the price that shoppers currently pay at the till. The price increase is part of SuperValu’s commitment to support Irish farmers, Irish jobs and Irish food, with the brand set to absorb the price increase, without passing it on to consumers. “As a brand, we are committed to buying Irish whenever possible and in this case to continue to do this, the industry needs some additional support and we are delighted to be in a position to provide this,” noted Eamon Howell, Trading Director, SuperValu. 9


January/February11Industry

News

Byrne’s Named XL Store of the Year BOBBY Byrne’s XL store on O’Connell Avenue in Limerick has won the overall title of XL Store of the Year for the second year running, while two other Limerick retailers have also been recognised for achieving high standards in retailing at the annual Store of the Year Awards. In addition to Bobby Byrne’s XL winning the overall prize, there were 19 other category winners, with Dromkeen Stores XL taking home the award for Best Forecourt while Ryan’s XL in Caherconlish was awarded Best Soft Drinks. Pictured at the XL Store of the Year awards are (l-r): Frank Garrand, Store Manager, and Robert Byrne, Owner, of Bobby Byrne’s XL on O’Connell Avenue, Overall Store of the Year winner, with Linda Keohane from GlaxoSmithKline (sponsor of the award) and Val O Meara, XL Business Development Manager.

New SuperValu to Open in Mountmellick SUPERVALU is to create 70 jobs with the opening of a new store in Mountmellick, County Laois as part of its 2011 expansion programme. €5.5m will be invested in the development of the 1,486 square metres store, which will be owned and operated by well known local businessman and SuperValu retailer Emmett McConville. The store will open in early summer. Pictured at the site in Mountmellick are (l-r): SuperValu Managing Director Martin Kelleher and and SuperValu retailer Emmett McConville, who said, “Opening seven days a week, we will provide excellent service, range and quality in a modern convenient location. The store will excel through its fresh food, a consistent keen value offer, relationships with local suppliers and the expertise and customer service of the management and staff. We will have 200 free parking spaces and in-store ATM facilities – everything on site for today’s busy shopper.”

Turn The Tide of Suicide with SPAR THE 3Ts charity has recently launched 1life wristbands, available exclusively at SPAR, in aid of suicide prevention helpline 1life. Following last year’s hugely successful ‘Luv Bear’ campaign, SPAR stores nationwide are now selling 1life wristbands at a price of €1 with all proceeds going towards the operation of the suicide prevention help line 1life (1800 24 7 100). SPAR expects the 1life wristband and other fundraising in store to raise €200,000 for ‘1life’ which is a joint venture between the 3Ts – Turn The Tide of Suicide (SPAR charity of the year) and Console. 1Life was launched in 2009 by Padraig Harrington (pictured) with the aim of preventing suicide and of meeting the very real need to provide counselling for those who are in crisis when they need it.

Win €100,000 of Free Press Advertising

Maxol Celebrate 25th Year of ‘Free A Nipper’

NEWS International, publishers of The Sunday Times, The Irish Sun and The Irish News of the World, are giving small business owners the chance to win €100,000 of free press advertising to help put their business on a stronger footing for 2011. The ‘Ignite Your Business Awards’ have been designed to recognise and reward business owners who are forging ahead in spite of the current economic difficulties. The winning entry will receive a press advertising campaign to the value of €100,000 in The Sunday Times, The Irish Sun and The Irish News of the World. Combined, the three iconic newspaper titles reach over 1.2m Irish readers every week and the advertising campaign for the winning entry will be planned in a strategic way to ensure it reaches the right audience for their product or service. The ‘Ignite Your Business Awards’ are open to all small businesses, including franchises, with up to a maximum of 50 employees. The business must be in operation for at least two years and must not be a branch of another business. See www.igniteyourbusiness.ie for more information.

MODEL Jenny Lee Masterson joined Maxol CEO Tom Noonan for a special photocall to celebrate the 25th anniversary of Maxol’s famous ‘Free A Nipper’ campaign and to highlight their new Facebook page which invites ‘Nipper’ fans to share their favourite memories of the ’80s cuddly toys! Jenny holds two of the last three remaining original three nippers in the country. The Nipper still holds a place in many hearts as hundreds of Irish adults logged on to the new facebook site since it went live to share their experiences of their favourite Nipper toy. Three lucky Facebook visitors will receive each of the last three remaining nippers.

10


January/February11Industry

News

Grocery Suppliers Race Ahead ROCWELL Natural Mineral Water, Manhattan Peanuts and Jacob Fruitfield are amongst a number of suppliers who have come together to provide energy and refreshment to runners taking part in the forthcoming Kleinwort Benson Investors St. Patrick’s 5k Festival Road Race, which takes place in Dublin on March 20. Open to elite athletes, fun runners and families alike, the race begins at 12 noon from the Mansion House where it will be officially started by the Lord Mayor of Dublin, Cllr. Gerry Breen, while part of the proceeds raised will go to the Marie Keating Foundation. Registration can be made on-line at www.patricksrun.com. Pictured at the launch with race director, Eamonn Coghlan are model Kate O’Neill (left) and former Galway Rose, Eimear O’Leary.

Purina to Feed Rescued Animals THE Dublin SPCA rescued 4,102 animals last year, including cats, dogs, horses and rabbits, as well as wildlife such as foxes, birds, hedgehogs, small animals and farm animals. Feeding over 3,500 cats, kittens, dogs and puppies is no small feat. Purina will provide the Dublin SPCA with 34,000kgs of Bakers, Felix, Go Cat and Winalot pet food, which equates to approximately 180,000 meals, in 2011. This includes the meals provided to all foster parents free of charge and will save the Dublin SPCA over €100,000. Purina has been providing this level of support to the Dublin SPCA since 2005. Jennifer Quinn, Brand Manager, Purina Ireland, is pictured with Lexi at the announcement.

Appointment at British American Tobacco

Flogas On Target for Applegreen

A NEW appointment at British American Tobacco (BAT) UK brings senior management experience from the Irish market to meet the demands of a changing UK tobacco industry. Toby Granwal will be taking on the important role of Head of Marketing at BAT in the United Kingdom. Having held the position of General Manager at P J Carroll (the BAT subsidiary in Ireland) for over three years, Granwal is well positioned to drive brand strategy for the UK and Ireland. “It’s an exciting time to be taking on the role of Head of Marketing at BAT UK,” he noted. “Having recently had the privilege of leading the team in Ireland during the period of the display ban implementation, I hope my experience will be valuable in helping to grow the business.”

FLOGAS is now supplying the LP Gas required to power the CHP (combined heat and power) units located at the six Applegreen Motorway Service Areas on the M1 at Lusk and Castlebellingham and the M4 at Enfield. Each location is 50 times the size of an average service station and on a par with the most advanced sites in continental Europe. Operating on LP Gas, which is clean, virtually odourless and soot-free, the CHP unit allows for the simultaneous generation of water heating, central heating and electricity in a single process. This not only reduces energy costs but also minimises the impact on the environment. “A high-tech operation like the Motorway Service Areas would usually mean significant energy consumption, but not in this case. The use of environmentally friendly LP Gas for each on-site CHP unit to generate electricity on-site is just another example of a practical energy solution from Flogas,” said John O’Donoghue, National Sales Manager for Flogas Ireland, pictured (right) with Joe Barrett, Operations Director for Applegreen.

Crafty Le Crunch Kids OVER 4000 Primary school children from more than 520 schools submitted entries in the Le Crunch Nature’s Heroes competition, and the panel of judges has whittled them down to nine finalists across the three age categories. The children were invited to make a poster or create models of sporty Le Crunch Bunch characters using any of the six varieties of Le Crunch apples as well as other healthy foods. Photos of the finalists’ entries go on display in Dunnes Stores grocery outlets from February 23, where members of the public will have four weeks to use the in-store voting forms to nominate their favourite in each category. A preview of the finalists’ entries may be seen on www.ouitolecrunch.com. The category winners will be announced in April and each will get a €250 toy, music, sports or art voucher, plus lots of Le Crunch goodies and a Certificate 11


January/February11Karen

Meenan’s News Rack

Make Part Works Work For You Karen Meenan reports on some of the big part works launches this season, and advises on how to get the best return from this valuable sector.

If

you are going to get good at newsagency then merchandise your stand to reflect the changing seasons. This is a calendar guide to when you can avail of extra sales – January and September are big magazine months, particularly for part works (collectible titles). During these two months, TV advertising is relatively cheap so publishers tend to advertise part works then to coincide with New Year and back-to-school resolutions. January

Diet, Fitness, Holiday, Homes, Hobbies, Bridal, Part Works, Cars, Slimming.

February Rugby, Romance, Food & Wine (Slimming), Film (Oscars). March

Soccer, Gardening, Home Improvements, Fashion, Car Buyers.

July

Pre-School, Equestrian, Men’s Weeklies, Grand Prix, Romance.

August

Puzzle Titles, Specials, Celebrity, Fashion, Fiction Feast.

September Crafts, Hobbies, GAA, Home Interiors, Debs, Fashion, Football, Crime, Part Works. October

Food & Wine (preparation for Christmas), Night Classes, Soaps, Gaming, Home Interiors.

November Men’s Titles, Gaming, Computers, Gadgets, Calendars, Food, Home Interiors. December Bridal, Film, Music, Photography, Puzzles, TV Listings.

Springing Into Action April

Food & Wine (Easter), Gardening, FHM, Motorbikes, Scootering, Caravans, Holiday.

May

Golf, Fishing, Boating, Music (Gigs & Festivals), Cycling, Athletics.

June

Children’s titles peak during summer and mid term breaks.

12

Spring titles are usually full of health and fitness and good healthy lifestyle features. Irish title Easy Health is produced by the same publisher as Easy Food and is one of the best selling titles in this category. Other titles that sell particularly well at this time of year are Top Santé, Slimming World and Rosemary Conlon Diet & Fitness. One of the best sellers, Zest is particularly suited to women aged 20-40 who are

seeking to make positive changes to their lifestyle and health. Weight Watchers is of course the ultimate women’s health and slimming magazine, which is the biggest revenue generating title in the slimming sector. The brand name can be found in the chilled, frozen and ambient shelves – so you really need to get this title on the magazine stand also to get maximum sales. Weight Watchers have launched the Propoints plan, which uses the latest science to evaluate how different foods are processed to suggest best ways to accelerate weight loss. Men’s Health and Men’s Fitness are the best selling male titles and sports and leisure titles like Men’s Running, Triathlon 220 and Flex and Muscle Fitness are good sellers at this time of year.

The Rules for Part Works Part works (collectibles) and stickers are products which are perceived as being not worth the trouble. If these are handled well, then there is money to be made – if you don’t manage them, then of course you will lose money – but doesn’t that hold true for the entire business of retailing? Money making in a retail outlet is not automatic. A good retailer puts systems in place to ensure that every product is giving a return on his or her investment. In order to get it right – know the rules. Parts 1 to 5 are always return-


January/February11Karen

Meenan’s News Rack

able – these are on full sale-or-return so that your customers have a chance to see if they like the collectables within the first five weeks of the part works launch. Sometimes this is longer than five weeks, but sale or return for parts 1-5 is a good guide. Part works are usually heavily advertised on TV for the initial period, with media spend of up to €1m per launch. After that time, part works go on firm sale – that means that you can no longer return an unsold part work if your customer decides (as they usually do) not to keep the collection going. This customer behaviour, while frustrating to retailers, is not unusual: how often have you made a decision to lose weight, quit smoking, play more golf or leave the shop early only to fall off the wagon a few weeks later? But when a customer decides not to continue with a collection, two things usually happen: 1.

You fall out with the customer and insist that they wanted the item and therefore ought to pay for it. Result: you lose the customer forever.

2.

You decide never to stock part works again. Result: you lose the sales on part works (which people want because they all get heavy TV advertising) – so you lose again. In fact, you are so annoyed with your customers that you strangely want to stop selling stickers also… on the basis that the children have stopped collecting them. Result: you lose again.

New Launches Part works publishers traditionally advertise new launches at the start of each year – this is because TV advertising in the post-Christmas period is relatively cheap – they don’t do this just to annoy you! Part works (to repeat, when handled well) are so successful for publishers that they are launching at alternative times during the year to link with buyer behaviour. The Art of Crochet was so successful last year that a new title The Art of Knitting is just about to be launched – so make sure you don’t disappoint

James Bond’s DB5 gives collectors the chance to build the 007 Aston Martin made famous in ‘Goldfinger’.

your customers by returning this on the same day! Part works are often marketed towards modelers, which are usually men aged 35-65. The Art of Crochet was a significant launch for women of all ages and so a new part work will be launched shortly called Baked & Delicious. There will be 60 issues distributed every fortnight at a sterling price of UK£4.99 (convert at Euro Ready Reckoner). Launch date is March 9 with a 2 week TV advertising campaign. This collection is fully saleor-return – so no risk to you. Captain Cook’s Endeavor is a new step-by-step collection allows readers to build their own exact 1:48 scale replica of the iconic vessel. Issues will carry all of the high quality compo-

nents necessary to build the model, as well as a richly detailed magazine showing easy-to-follow instructions for doing so. Issue 1 will carry a free DVD modelers’ guide. If you can get even one of your customers to buy this from you (instead of ordering on-line as is usually the preferred option) and they spend €10 each issue, it means that customer will be worth €1,000 in the till! The good news is that this part work will be supported by two weeks of national TV advertising at launch and will be fully sale-or-return throughout the 100-part collection. Another new part work is The Blackest Night Collection, a new figurine and magazine series expanding upon the award winning DC Comic Super Hero Collection. Each figurine 13


January/February11Karen

will be a highly detailed replica of the character from the Blackest Night at approx 1:21 scale in a classic standing pose from the comic series. As well as the figurine, every issue of DC Comics Collection – Blackest Night will carry a 16-page magazine packed full of information on the featured character. Not only will Blackest Night be supported by flyers in the regu-

Meenan’s News Rack

Baked & Delicious is a new part works collection which launches on March 9 with a two-week TV advertising campaign. This collection is fully sale-or-return – so no risk to you.

The Part Works Database Title Name

Planned No. of Parts

Baked & Delicious

60

James Bond’s Db5

85

Agatha Christie dvd Art of Crochet/Art of Knitting Best Food Fast Bonanza dvd

60 120 48

lar DC Comic Super Hero Collection and The Classic Marvel Figurine Collection, but it will also be fully sale or return throughout the series (16 parts in total). SRP: Part 1 €4.99, Part 2+ SRP €10.99. So if you get a collector for this, you have another €150 in the till.

110

The Bane of ‘Firebacks’

Buffy Angel dvd

64

Cat Collection

60

Cavalry Through The Ages

80

Same day returns or ‘firebacks’ are the bane of the publisher’s life. Every year, lots of sales are lost because people in stores make a decision that new titles “won’t sell in my shop”. The Art of Crochet is a good example of a new launch that was returned on the first day of sale by hundreds of outlets nationwide by the full time staff member who decided that nobody would buy this – and then spent the next few weeks trying to get back issues from the supplier because customers came into the store looking for it! New titles (particularly UK titles) often have a marketing spend of over a million euro of TV advertising support. Your customers see the ads on TV and go to their nearest store to buy the titles. And you didn’t stock it because someone in your store made that executive decision on your behalf! Let’s face it: you wouldn’t decide not to stock tobacco simply because you are a non-smoker.

Classic Drama dvd

71 (Parts 51-52,61-62 SOR)

Classic Marvel Fig.

180 (Parts 101-102,121--122, 160-161 SOR)

Combat Tanks Dc Comic Super Hero Dinosaur Discovery Dr Who dvd

110 100 (Parts 80-81 SOR) 80 65 (Parts 53-54 SOR)

Fighter Aircraft Collection

48

Gogo Crazy Bones Partwork

80

Hello Kitty Partwork

50

James Bond Cars Lancaster Bomber National

110 (Parts 76-77, 86-87 SOR) 125

Little House on the Prairie dvd

69

My Favourite Recipes

23

Ospreys Battles of WWII

50

Peppa Pig Playland

60

So Hannah Montana

90

Star Wars Off Star Veh.

80

Strawberry Shortcake Tiger Tanks

80 (Part 41 SOR) 140

Top Gear Turbo

52

Tractors And World Of Farm

60

Treasures Of The Earth

100

Ultimate Wildlife Ireland

50

Western Classic

75

Wildlife Of Britain/Ireland 14

150

Sackboy Superstars A new craze just about to hit Ireland is Sackboy Superstars – All Around the World. This is a new collectable series based on Little Big Planet, a unique and colourful Sony PlayStation game for children and adults alike. Sackboy is a cool little character that explores the Little


January/February11Karen

Big Planet World. There are over two million users of the game and one million levels have been uploaded in nine months so there is a very high expectation that sales of Sackboy Superstars will be a winner! There are 12 to collect – each representing a different nation (there is an Irish leprechaun!), plus two rare special characters which could be collector’s items. When children stop collecting them (and they will – this craze is short lived), you can get your money back in full without risk. To dispel another myth – many retailers believe you can only return full boxes of stickers to receive credit – this is not true. While there is a general recall date for stickers, you can return un-solds whenever you want: simply identify how many you are returning on your query sheet with your account number and return to your distributor in the normal way. And most important of all – make sure you return un-solds back to the correct supplier! Thousands of euros are lost every week because retailers send back the wrong titles to the wrong suppliers. When you make these mistakes (Code C on the EM credit advice note or ‘Not supplied by Newspread’ on the NS advice note),

Meenan’s News Rack

Sackboy Superstars – All Around the World is a new collectable series based on the Sony PlayStation game Little Big Planet, which features colourful Sackboy models representing different nations from around the world.

you lose money – lots of money! The newsagency is very simple to manage. Just put out the new titles launched by publishers onto the magazine stand and very quickly you will know if there is an appetite for these new sales or not. Not all new products take off on the first delivery and so it is with magazines; they sometimes need a few issues to get off the ground.

The key thing to remember is to give a bias towards new titles – place them on the most prominent place in the relevant sub-category. So, for example, if you get a supply of new titles, Scootering and Classic Scooterist Scene, display them in the motoring section beside Bike Buyers Guide and Classic Bike Guide for best chance of early sales lift off.

How to Manage Part works – The Three Options 1. Take a decision to be a week ahead of your customer when they ask you to keep this item every week for them. When they buy issue 1, which is usually heavily discounted, ask them to pay for issue 2 at the same time, which is at the normal selling price. This ensures that even when they stop collecting (and they usually will!) you are not going to lose any money and you are also not going to lose your customer. OR 2.

Take a decision to only stock part works 1-5 and you encourage your customer to buy direct with a credit card direct from the publisher each week after that. No risk to you and you still keep your customer. OR

3. Take a decision to stock all part works 1-5 and when the title goes on firm sale, ask your customer to pay for two issues (part 6 and 7) at the same time so you never lose money. Take their mobile number and text them each time the part work arrives in your store so you can alert them. Good customer service yes, but it ensures that you keep your customer buying. And when they stop buying, cancel. The Newsagency is a tricky category to manage, and can be very frustrating at times – we all accept that. But don’t lose the opportunity to make more sales just because you have found this category hard to manage in the past. If you need help to grow sales and reduce losses you can contact Karen Meenan at The Daily Profit – www.dailyprofit.ie or ring 086 6027711 or W h e re Re t a i l e rs email karen.meenan@dailyprofit.ie

The Daily Profit

Make More Profit 15


January/February11Pasta

& Sauce

The Italian Job Irish consumers’ love affair with Italian food shows no signs of abating.

The

meal solutions sector has prospered over the course of the recession, as consumers increasingly spend their evenings at home rather than eating out. Italian food is an obvious beneficiary, as consumers love both the taste and convenience of cooking Italian at home, while brands that can offer easy-to-cook restaurant quality products are flourishing. The credit crunch and the associated slowdown in expenditure in eating out of home are providing sales opportunities for the pasta market, according to Bord Bia, with pasta increasingly viewed as a good value meal. Indeed, with a relatively low price point and a focus on innovation, the market for pasta looks set for further growth, with consumers increasingly seeing pasta as an everyday essential.

This is borne out by the statistics. Ireland’s dried pasta market is valued at €24.5m, with a 7.4% increase in volume (Source: ACNielsen, MAT, November 2010). Indeed, 83% of Irish consumers eat Italian food weekly (Source: MC² Consumer Research, March 2010). The quest for health and wellness has impacted on product innovation with a 20% global rise in demand for wholegrain pasta, according to Euromonitor. Other trends include the introduction of white pasta containing the goodness of whole wheat in addition to the development of convenient microwavable packs, organic and low-carbohydrate varieties and ranges designed for the children’s market.

‘Comfort food’ has made a small comeback in Ireland, according to Euromonitor, with pasta providing the versatility required, especially with the array of wet sauces available for all palates, with canned/preserved pasta and chilled/fresh pasta showing moderate volume growth in 2009/2010. Similarly, pasta sauces remain popular with consumers, although discounting has been a regular part of this sector since the impact of the recession.

Roma Pasta Roma, which was founded in 1958, has a large portfolio including pasta, tomatoes, olive oils, pasta sauces, rice, passata, puree and antipastos.

Top Tips for Pasta Perfection. 1.

Stock brand leaders – these proven sellers usually offer better margins than own brand. Consumers usually know the type of sauce they will buy before they go to the store, so brand leaders and best-sellers are vital.

2.

Distinguish clearly between ethnic categories and meal solutions – consumers are unlikely to replace one segment for another.

3.

Co-promote with complementary ingredients – locate products close to complementary ingredients or make consumers aware of them through cross-promotions (e.g. mince with Bolognese, mushrooms with Carbonara etc). High value accompaniments like parmesan or pesto are great impulse buys for consumers.

4.

Offer choice – different pasta shapes are used for different meals, so a wider range means more options for consumers and consequently, bigger sales. In terms of sauce, family size and larger jars are performing extremely well. Also, ensure you stock at least one variety of canned tomato, puree and passata or you risk losing a growing section of consumers who prefer making their sauces from scratch.

16

The Roma portfolio includes a range of canned tomatoes, increasingly important to the growing number of consumers who prefer homemade sauces.


January/February11Pasta

has seen some successful launches in the past six months, with Penne Lisce, Tortiglioni, Linguine and the new-size Penne and Fusilli 2kg. Over the next two months, keep an eye out on their new range of Gluten Free pasta, and bronzed Egg Spaghetti and Tagliatelle packs. Roma continues to support all stores with dedicated planogram and marRoma claims a market leading share of the €24.5m dry pasta category, with new keting support free of charge where products helping to fuel market growth. requested. In 2011, there is an exciting above the line campaign planned, with celebrity chef Catherine Fulvio The brand’s focus on providing these set to front a heavyweight campaign quality, affordable Italian food supporting the brand. The year promingredients and meal solutions has ises to be an exciting one for Roma, been central to its success to date. who continue to lead the way in the This success is most evident in the Italian category in both innovation dried pasta category, where Roma and retailer support. claims a leading market share of 36%, which is 34% more than its leading branded competitor. Dolmio Roma’s focus on providing new Dolmio claims leadership of Ireland’s products to help grow this category pasta sauce category, claiming a 65%

& Sauce

share (Source: ACNielsen). Its success can be attributed to its wide portfolio, which includes Bolognese sauces in a variety of flavours, as well as Dolmio Pasta Bakes, Dolmio Stir-in sauces, Dolmio Lasagne sauces and kits and the Dolmio Express range, which is perfect for time-poor consumers who want a quick meal in minutes, without compromising on taste or nutrition.

Loyd Grossman Celebrity chef Loyd Grossman has a range of Italian sauces which prove extremely popular with Irish consumers. The range includes Bolognese, Carbonara with Smoked Pancetta, Primavera, Puttanesca, Smoky Bacon, Sweet Red Pepper, Tomato & Basil, Tomato & Chargrilled Vegetables, Tomato & Chilli, Tomato & Roasted Garlic, Tomato & Wild Mushroom, and two Pasta Bakes: Creamy Tomato, Spinach & Ricotta ‘Al Forno’ Sauce, and Tomato & Parmesan with Pancetta ‘Al Forno’ Sauce.

Equipment Asset Finance

17


January/February11Customer

Service

Targeting Good Customer Service Delia McMahon, Associate Solicitor in the Litigation and Debt Recovery Department of William Fry, writes on the importance of enhancing customer service relations.

In

the current recessionary time, there is ever increasing pressure to provide high quality customer service to ensure business survival. The benefits of quality customer service include: s (IGH LEVEL OF CUSTOMER LOYALTY s )NCREASED PROFITS s 3TRONGER POSITION IN THE marketplace s )NCREASED CUSTOMER RETENTION s )NCREASED JOB SATISFACTION AND STAFF morale

There are various legal procedures which, if properly implemented, will assist in strengthening customer loyalty and minimise the likelihood of complaints potentially resulting in litigation proceedings. Achieving consistently high quality throughout pre and post sales activities leads to a long and mutually beneficial business relationship.

1.Terms And Conditions of Sale Regular review of “Terms and Conditions� (T&C’s), which are rarely given the critical examination they deserve, is an integral part of any enterprise’s critical business and risk MANAGEMENT SYSTEM )T IS IMPERATIVE that each business organisation addresses the efficacy of its T&C’s and ensures they are legally binding and in compliance with current fair trading laws. Full compliance with governing legislation is the foundation underpinning good customer service relations. Once these technical legalities are observed, your business can focus on delivering the highest quality service to its customers.

2.Customer Interaction and Knowledge Customer retention is vital in the current competitive market. Effective measures can be taken to avoid the 18

unnecessary loss of existing customers. Customers should be clearly informed of the distinguishing features of your organisation’s customer service, which sets it apart from your competitors. Bespoke facilities and additional services should be advertised and communicated effectively to your customers. Eliciting continuous customer loyalty remains largely dependant upon your interaction with your customers, both before and after the sales transaction. Transparency and effective redress are the hallmarks of good customer interaction. Details of your customer policies, especially your returns and complaints procedures, should be clearly visible to all of your customers. )N ADDITION RETAILERS MUST BE CONscious of the ever changing diversity of their customers’ needs and issues. Adaptability is essential to ensuring customers’ ever-changing requirements are realised. Customers should be provided with details of how they can submit individual customer requests or suggestions and measures should be implemented within the organisation to ensure that each request is adequately addressed. Customer feedback is an essential part of service excellence and should be conducted on a continual basis.

3.Strive to Minimise Negative Customer Feedback Many organisations fail to fully appreciate the costs of negative customer feedback and the value of effective customer communications. )T IS ESTIMATED THAT A PERSON WITH A complaint is likely to tell nine other people about their bad experience and name the business involved. Loss of customers, due to unresolved complaints, invariably leads to lost revenue, not only from the customer affected but also from other potential customers who learn of the customer’s

negative experience and this in turn leads to a loss of sales and money for the business. )T IS IMPERATIVE THEREFORE FOR EVERY business to have a detailed and well documented customer complaints procedure in place to empower all staff members to handle complaints more confidently, efficiently and effectively. From a managerial perspective, such a procedure helps identify potential weaknesses and, more importantly, opportunities for improvement. A dedicated person or department focused on Customer Relations, where complaints can be immediately directed to for investigation, is of assistance. This conveys a level of professionalism and reassures clients that complaints are taken seriously. While the procedure itself can be quite simple, the benefits it will provide will be felt throughout the organisation. A systematic accounting of each complaint, along with a timely response and reaction, is essential to improving overall customer relations and customer retention.

Conclusion Providing quality customer service REQUIRES CONTINUOUS COMMITMENT )F your customers feel that they are valued, your business will be rewarded not only with their loyalty but they in turn will tell others, each of whom in turn becomes another potential future loyal customer. Remember - if you don’t take care of your customers, your competitors will. Delia McMahon is an Associate 3OLICITOR IN THE Litigation and Debt Recovery Department of William Fry. E-mail: delia. mcmahon@williamfry.ie. Tel: (01) 6395325.


January/February11BIM

Seafood Circle Awards

BIM Rewards Innovation in Seafood The BIM Seafood Circle 2011 Award Winners were announced recently, highlighting the cream of seafood retailers in Ireland.

Ireland’s

Eugene Scally, SuperValu, Clonakilty, winner of the BIM Seafood Circle ‘Supermarket Seafood Counter of the Year 2011’ is pictured (left), with Donal Buckley, Business Development and Innovation Manager, BIM.

Scally’s SuperValu, Clonakilty winning Supermarket Seafood Counter of the Year and Fishy Fishy Café in Kinsale banking Seafood Restaurant of the Year 2011. The Seafood Circle was developed by BIM to support and champion retail and hospitality outlets that continually offer excellent quality seafood and service to their customers. The Seafood Circle plaque is presented to members on an annual basis and BIM encourage customers to seek outlets with this badge of honour in order to be assured of the best seafood available. “The fact that the Seafood Circle is growing despite the stringent criteria that need to be met in order to gain membership is inspiring,” noted Minister of State at the Department of Agriculture, Fisheries & Food, Sean Connick TD. “It highlights that many Donal Buckley, Business Development and Innovation seafood retailers and hospitality outlets are strivManager, BIM, is pictured with Padraig Doran, Pettitt’s SuperValu, Wexford, winners of the ‘Best ing to go that extra mile Display 2011’ in the Supermarket Seafood Counter to ensure customers have Category; Sean Connick, TD, Minister of State at the the best seafood experiDepartment of Agriculture, Fisheries and Food; and ence possible and that Allen Pitman, Pettitt’s.

wealth of top class seafood retailers and restaurants received a ringing endorsement from BIM, the Irish Sea Fisheries Board, recently, as the BIM Seafood Circle 2011 Award winners and coveted membership places were announced. Almost 200 Seafood Circle members for 2011 were listed, including 41 newcomers, in addition to Quinlan’s Kerry Fish in Tralee winning the Seafood Specialist of the Year Award,

quality and attention to detail do not need to be compromised even in these demanding economic times.”

Stringent Criteria The stringent criteria that need to be met in order to gain membership extend well beyond providing the customer with excellent seafood. Outlets also have to demonstrate to independent assessors that they have superior knowledge of their product offering, have excellent customer service skills and comply with the strictest storage, handling and presentation requirements. Due to the enormous success of the Seafood Circle since its inception in 2001, the categories have expanded to include retail members covering Supermarket Seafood Counters and Seafood Specialists. In 2011, all of the Superquinn counters retained membership and SuperValu seafood counters nationwide are now on board. In addition, the hospitality sector now boasts 99 members who are independently assessed by experienced food writer, Georgina Campbell, author of ‘Georgina Campbell’s Ireland, The Guide’. A key focus for the 2011 hospitality membership is whether the establishment is viewed primarily as a ‘seafood destination’. 19


January/February11BIM

Seafood Circle Awards

Innovation Long regarded as one of the most innovative and enterprising seafood stores in the country, Scally’s SuperValu in Clonakilty lifted both the Supermarket Seafood Counter of the Year 2011 and the Innovation and Development Award 2011. Understandably delighted at winning two prestigious awards, store owner Eugene Scally is quick to pay tribute to the advice and encouragement he received from BIM. “I think it’s very important to stress how positively BIM have responded to our initiatives, our developments and our new products in-store,” he stressed. “We’re not just selling fish: we’re selling whole fish, we’re boning fish, we’re selling fish stock, fish cakes, fish sausages, fish burgers, fish pies and chowder and we’re selling cooked fish at the deli counter. John Hackett from BIM has been magnificent: he’s a breath of fresh air and he’s done a huge amount for Scally’s, which we’re very proud of.” The store owner feels that the Innovation and Development Award in particular will help Scally’s to drive seafood sales throughout the year. He points to the development of fish stock for sale in-store as an example of an innovation that has worked, with Scally’s now selling in excess of 100 tubs of fish stock per week, which consumers use to create fish pies and other products at home. “We’ve introduced a number of new fish products and we hope to extend

our range over the year, including the development of fish soups,” Eugene explained. “We would like to keep developing our seafood business. You can see what has been done with chicken in recent years, with the development of different portion sizes, sauces and marinades, and we can do the same with fish. There are so many different varieties of seafood that there is a huge opportunity for the development of the seafood sector in-store and that’s what I will be challenging my team in-store to create.”

business.” In the seafood business for almost 50 years, Quinlan’s have their own fishing fleet, which Liam feels gives them an advantage when it comes to ensuring their range is plentiful and as fresh as can be. He also pays tribute to their well-trained, knowledgeable staff as a key factor in winning the top award.

Developing the Seafood Sector

Another SuperValu store, Pettitt’s in Wexford, won the Best Display Award, and Padraig Doran, store manager, expressed his Shane Willis and Amy Caviston from Caviston’s in delight with the win, Greystones, Co. Wicklow, winners of the Best Customer which is a reward for Service Award 2011 in the Seafood Specialist category; the amount of hard work pictured with Donal Buckley, Business Development and Innovation Manager, BIM. that goes into ensuring Pettitt’s seafood display is pristine: “Fish is such a delicate The New “Sexy” Food product, you need to ensure that it Quinlan describes seafood as “the looks well, not just in the morning new sexy food”, with consumers but all through the day and into the increasingly turned onto fish thanks evening.” to a combination of its well-publicised Display is just one area of Pettitt’s health benefits and its prevalence on seafood strategy, however. “We’re some of TV’s highest rated cookery putting a lot of work into our seafood shows. Perhaps surprisingly, Quinlan area, introducing new fish varieties feels that the recession has helped and developing the sector. We sent seafood sellers nationwide: “Before, our staff from the seafood counter to consumers were probably going out a local hotel to train with for dinner and ordering seafood in a chef on how to cook the a restaurant, whereas now, they produce, and they can then are increasingly cooking it at home,” pass that information onto he mused. “They’re also treating consumers. We also have themselves by spending a little more an in-store demonstrator on a decent cut of fish, and they’re also who will regularly focus on experimenting with different seafood seafood to encourage cusvarieties more than ever before.” tomers to buy.” Quinlan still feels, however, that Liam Quinlan, owner educating consumers on the simplicity of Quinlan’s Kerry Fish of cooking seafood is the biggest chalin Tralee, was “over the lenge to the sector’s growth. moon” at being named His views are echoed by Shane Seafood Specialist of the Willis, who owns Caviston’s in Year 2011. “For a shop Greystones, Co. Wicklow, with his that is only open for wife, Amy. Winners of the Best Pictured are (l-r): Liam Quinlan, Quinlan’s Kerry two years, this is a huge Customer Service Award 2011 in Fish, winners of the BIM Seafood Circle ‘Seafood achievement,” he told the Seafood Specialist category, Specialist of the Year 2011’ Award; with Paul Caviston’s endeavour to “make fish R ETAIL NEWS. “It will be Stack, Shop Manager and Donal Buckley, Business accessible to people to try to gain a massive boost for our Development and Innovation Manager, BIM.

20


January/February11BIM

Strong Stamp of Quality

Seafood Circle Awards

growth in seafood over the last few years, thanks to a combination of hard work, knowledge and the ability to transfer their knowledge to customers. “It is about getting the overall package right in terms of product, staff and display,” explained store owner Michael Riordan. The store owner avows that winning the Best Customer Service 2011 Award in the Supermarket Seafood Counter category will “help to let people see the level of service that we provide for our customers. Customer service is extremely important to us and it’s great for that to be recognised.” While acknowledging that achieving BIM Seafood Circle membership takes a lot of work, Michael Riordan is certain of its benefits: “The Seafood Circle is gathering momentum all the time, in terms of customers learning the importance of it and what it stands for. It helps to reassure the customer that we are providing a premium product and service.”

Gary Morton, owner of Morton’s in Ranelagh, winners of the Newcomer of the Year 2011 Award in the Supermarket Seafood Counter category feels that joining the BIM Seafood Circle had a host of benefits for Morton’s. “The Seafood Circle is a very strong Donal Buckley, Business Development and Innovation stamp of quality,” he Manager, BIM, presents Gary Morton from Morton’s avows. “All of the in Ranelagh with his Seafood Circle plaque as ‘ Newcomer of the Year 2011’ in the Supermarket stronger performers in Seafood Counter category. the seafood sector are members of the Seafood Circle. BIM more customers who previously may are also strong on what they can offer not have eaten fish. members. In fact, attaining it allowed “All our staff are specially trained us to engage with our customers to help and advise consumers on fish about seafood in a much stronger way and how to cook it. We also have a than ever before. chef on the premises full-time if peo“We’re very proud to have got ple have any questions about varieties this award, and we’re very happy to of fish,” Shane explained. “If you have be members of the BIM good, fresh fish, it should be simple Seafood Circle, which helps enough to cook and the flavours will to form a support structure speak for themselves. A lot of people for the sector. We hope that who wouldn’t really have been fish the award will help to grow eaters before we opened are very surour fish sales and make the prised at just how simple it is to cook seafood counter one of the seafood. We have built up relationhighlights of our store.” ships and trust with consumers, who are now more willing to try new seafood types.” Educating Shane is confident that being a Consumers member of the BIM Seafood Circle is Educating consumers paramount to his store’s continued about the ease of cooking success: “It’s hugely important to have fish, allied to its various the BIM Seafood Circle plaque outside health benefits, is key in the shop because it is a stamp of qualensuring seafood sales Jackie Clancy at the Seafood Counter in Riordan’s ity. Once consumers, see it, they know continue to grow. Riordan’s SuperValu, Fermoy, with the plaque for the ‘Best that they can get good quality fish and SuperValu in Fermoy, Co. Customer Service 2011’ Award in the BIM Seafood Circle Awards, Supermarket Seafood Counter category. good advice on how to cook it.” Cork, have enjoyed strong CATEGORY

AWARD TITLE

AWARD WINNER

Seafood Specialist

Seafood Specialist of the Year 2011

Quinlan’s Kerry Fish Tralee

Best Display 2011

Kish Fish Coolock

Best Customer Service 2011

A Caviston Greystones

Newcomer of the Year 2011

Nick’s Fish Newbridge

Innovation & Development Award

Kirwan’s Fish Cart Drogheda

Supermarket Seafood Counter Supermarket Seafood Counter of the Year 2011 Best Display 2011

Scally’s SuperValu Clonakilty Pettitt’s SuperValu Wexford

Best Customer Service 2011

Riordan’s SuperValu Fermoy

Newcomer of the Year 2011

Morton’s Ranelagh

Innovation & Development Award

Scally’s SuperValu Clonakilty 21


January/February11Household

Care: Paper Products

Paper Weights The paper products market is extremely competitive, with new product launches set to shake up the sector even more.

The

paper products category is relatively mature, although new product formulations with added benefits, such as tissues infused with moisturiser, have maintained consumer interest in the sector. Another factor hugely influencing this market is the continued rise of the “green” consumer: consumers are keen to use more ecological products, as well as using them in a more environmentally-friendly way, by cutting down on consumption, according to the latest report from Euromonitor International. The report also found that the biggest, multinational players dominate the sector, including SCA Hygiene Products, Procter & Gamble (Manufacturing) Ireland, Georgia Pacific Ireland, Kimberly-Clark and Tesco Ireland. These companies have established leading positions in their respective categories over a long period of time, which has allowed them to become trusted and respected names. Greater financial backing means that these players tend to be engaged in most new product developments and advertising activities, thereby retaining consumer interest. Heavy promotions have been commonplace in the paper products sector in recent years, as has been the case in a host of grocery markets. The growth of private label across the paper products sector has been immense, as Irish consumers seek out value like never before. While innovation in the luxury toilet tissue segment created strong value growth in recent years, the recession has seen many consumers trading down or opting for heavy discount offers, which was a feature across a number of big brands. Whilst trends for convenience and 22

The iconic Koala is now the face of Cushelle soft toilet tissue.

better hygiene are inspiring growth in the tissue sector, the dominant trend remains manufacturers attempting to infuse products with new value through the addition of balsam and aloe vera, which is proving particularly effective in the boxed facial tissues sector. The recession saw increased home dining and entertaining, which significantly boosted paper tableware sales, with consumers demanding convenience and manufacturers responding with design-led price improvements, according to Euromonitor. This “cocooning” trend helped to increase retail value sales of paper tableware by 2% in 2009.

SCA Hygiene Products Ireland Now in its final stages of brand migration, Cushelle’s new look packaging and logo will be seen nationwide from March. Cushelle now claims a 10.1% market share (Source: Kantar Value Share, ending October 31, 2010) and is one of the nation’s favourite toilet tissues.

The pack re-launch is being supported with a strong marketing campaign which includes TV advertising, in-store promotions, a nationwide road-show and on-street activation where consumers can sample the product first-hand and witness its “irresistible cushiony softness”. Commenting on the re-launch of Cushelle, Morgane Salin, Brand Manager of Cushelle for SCA Hygiene Products Ireland said: “This new look forms the final stage of the migration for Cushelle and we are sure that the new packaging will be a hit with Irish consumers. Our most important focus is reassuring the consumer that the standard of our product has remained the same and is still irresistibly cushiony soft.” In March 2010, SCA Hygiene announced a major reinvigoration of the Charmin toilet tissue brand. While the quality and standard of the product stayed the same, a new brand name was introduced along with a new brand icon. Charmin was rebranded Cushelle and the iconic Koala is now the face of the irresistibly soft toilet tissue. See cushelle.com and facebook.com/cushellekoala for more information.

Cushelle’s pack re-launch is being supported with a strong marketing campaign which includes TV advertising, in-store promotions, a nationwide roadshow and on-street activation.

Homestead The Homestead paper range continues to be one of the strongest categories within the portfolio. Sales at the end of 2010 remained static in value and volume, which Homestead Brand Manager Janice Gibney is very


They’ll l ve the cushiony s ftness

You’ll the nationwide marketing campaign and the sales too!

t MAT value share has grown by 31% to a share of 10.1%* t MAT volume share has grown by 35% to a share of 9.3%* t Total consumer spend up by 15%* t New irresistible TV ads, packaging, promotions and road shows t Love more? Visit us at cushelle.com and facebook.com/cushellekoala

*

Kantar value and volume data 52 weeks ending Oct 31st 2010.


January/February11Household

The Homestead Soft 12 Roll, price flashed at €5.99 RSP is one of the true success stories of the Homestead paper range for 2010.

proud of, considering the amount of promoted and extra-fill branded product within the paper category which were available during the year. With sales amounting to almost €4m in 2010, accounting for nearly a quarter of overall Homestead sales in that year, the brand is truly enjoying the success of this category. The paper range, which includes a variety of toilet rolls, kitchen towels and mansize tissues, is produced to the highest quality using 100% virgin pulp paper. The selection rivals any market leader, while remaining well priced, in order to compete successfully in the private label market. Homestead Comfort 6-for-4 (RSP €1.99) and the Homestead Soft 12 Roll,

The launch of Comfort 18 Roll Flashed

€4.99 RSP will give the Homestead Paper range a good start for 2011 and will be available at various promotion times throughout the year. 24

Care: Paper Products

price flashed at €5.99 RSP, which will be promoted at €4.99 RSP through 2011, are the true success stories of the Homestead paper range for 2010. The launch of Comfort 18 Roll Flashed €4.99 RSP will give the Homestead Paper range a good start for 2011 and will be available at various promotion times throughout the year Homestead Brand Manager, Janice Gibney added, “As the market becomes increasingly competitive, it is imperative that we review our pricing on a continual basis and we look forward to bringing more savings to our consumers in 2011 to ensure we continue to bring value home.”

Georgia Pacific The Kitchen Towel market is about to get a shake-up with the launch of innovative new Thirst Pockets Multi Cloth, manufactured by Georgia Pacific. This new addition to the household category hits the shelves in March, and promises to revolutionise the way consumers clean. The product consists of a super-strong roll of kitchen towel that performs like a cloth, meeting all cleaning needs, whatever the challenge, performing like a duster, sponge and cloth all-in-one. The pioneering cloth is so tough and durable that in tests, it proved to be 60% stronger than the leading brand (Source: Georgia Pacific product trials, 2010; products tested when wet). Thirst Pockets Multi Cloth has concentrated fibres, ensuring a clothlike feel and leaves no nasty streaks across shiny surfaces. Because it can be used wet or dry, Thirst Pocket’s Multi Cloth is a high performance great multi-tasker: for example, rather than swapping between scourers and wipes, one single cloth can be used to scrub, rinse and shine the bathroom, all thanks to advanced technology from Airlaid. Airlaid is a specific process which uses cellulosic fibres that are longer than the conventional papermaking process. This creates a strong and absorbent product which can be rinsed and reused. Multi Cloth is a hygienic cleaning solution – it performs like a cloth, but because it is disposable, it removes

the need to have dirty cloths hanging around the home. The superior quality of Multi Cloth also means it is cost effective, because, compared to normal kitchen towels, consumers can use less to do more. Vicky Williams, Thirst Pockets Marketing Manager at GeorgiaPacific, says: “In blind testing, 89% of consumers said that Thirst Pockets Multi Cloth exceeded performance expectations, with consumers specifically citing the strength and versatility of the product, as well as the economic benefits of having two products in one. Multi Cloth is set to revolutionise the category, with its unique use of advanced technology, and we know the product will be a real success story with consumers and clean-fiends.” Christine Clarke, Marketing Director at Georgia-Pacific, adds, “This also is a great opportunity to drive category value. Consumers will use Thirst Pockets Multi Cloth for many more cleaning chores than they have previously used kitchen towel for, and because of this versatility, the consumption of the category will increase. The MRRSP is also higher than the category average, thereby trading consumers up to the more premium priced products and adding more value to the category.” The launch of Thirst Pockets Multi Cloth is being supported by a multimillion euro campaign across national TV advertising, PR, online and instore activity throughout 2011.

Thirst Pockets Multi Cloth consists of a super-strong roll of kitchen towel that performs like a cloth, and is set to revolutionise the way consumers clean.



January/February11Household

Care: Killeen

Cleaning Up With Killeen Killeen is the number one player in the cleaning product and refuse sack market and has been driving the category with innovations to satisfy all your customers’ needs.

Killeen

claims a whopping 40% share of the refuse sack market (Source: ACNeilsen). Established in 1985, Killeen has grown to become one of Ireland’s best loved indigenous brands. Today, Killeen has over 120 products in its portfolio including refuse, cloths and scourers, gloves, laundry aids and aircare. Killeen continues to deliver a powerful combination of high product performance, whilst remaining value for money for the consumer. The highly successful launch of Killeen Colour Grab sheets in 2009 demonstrates Killeen’s commitment to quality and value. Killeen makes cleaning easier with a cloth and scourer to tackle any cleaning job around the house. The ever versatile ‘Kitchen Mate’ and ‘Easi Clean’ outsell all other scouring products within the category.

According to Killeen, the market in general is in growth due to a number of factors: - A large number of people are unemployed and are in the home for longer periods of time; - People cannot afford major home improvements so they are taking greater care of their homes and gardens.

Killeen Colour Grab sheets offer 20% more sheets per pack and a lower RRP than their nearest rivals, while maintaining great retailer margins.

ing high levels of product sell-through. Killeen Colour Grab sheets provide a high quality, value offering to the consumer with the full backing of Killeen’s first class, award winning sales force and a track record in increasing your profits. Other products within the range include Colour Run Remover, Stain Remover and Super Whitener.

26

Killeen Refuse Sacks, one of the top performing brands in the market.

“The growth in eco-firendly products has slowed somewhat but it still offers the best opportunities for suppliers and retailers. Growth in compostable bags and bio-degradable refuse bags have been major drivers for the refuse sack business,” he continues. “The growth of eco-friendly products which do not command a high premium versus standard products would be identified as a key development in the general household market over the next few years.”

Killeen Kitchen Mate helps consumers to shift stubborn stains fast.

Killeen Colour Grab sheets and laundry aids were a continued success in 2011. Killeen Colour Grab sheets offer 20% more sheets per pack and a lower RRP than their nearest rivals, while maintaining great retailer margins. 2011 will see an extensive promotional programme, incorporating price promotions, sampling and demonstrations. These initiatives will be supported by eye-catching in-store POS (with images from the TV ad), ensur-

“We find consumers are staying loyal to the Killeen brand but that more than ever, sales are being driven on promotion,” explains Patrick Thornton, Brand Manager, Killeen. “The change to private label has been reversed to a large extent within our portfolio. We would like to think that this is due to a superior quality of product and keener pricing.

The hugely popular Colour Run Remover from Killeen.

Contact your Killeen sales rep for more information, visit www.killeenhousehold.ie or call Killeen Household Products on 041 9870379.


January/February11Drinks

News

Sheil’s Wins Off Licence Award SHIEL’S Londis in Malahide was named Food Retailer Off-Licence of the Year at the National Off-Licence Awards of the Year 2011. In addition, 50 finalists were awarded certificates of either ‘Standard’, ‘Merit’ or ‘Excellence’ based on their performance. “We are honoured to be selected for this award,” said store owner, John Shiel, pictured here with Reggie Walsh of NOffLA and Niamh McNamara of Londis. “The quality of stores in this category was extremely high, which makes our achievement all the more impressive. We work extremely hard to ensure that all aspects of the store meet the very highest standards and we are delighted to be recognised by the National Off Licence Association with this award.”

Appointment at Diageo BRIAN Duffy, currently Chairman, Diageo Ireland and Global Brand Director for Guinness, has been appointed to the newly created role of Global Category Director, Beer. This appointment follows a change in Diageo’s marketing department structure, which began in June last year and saw the global marketing function identify a new source of growth by viewing its business through a category lens, rather than just a brand lens. This resulted in the appointments of David Gates to the role of Global Category Director, Whisk(e)y and Ed Pilkington as Global Category Director, Vodka, Gin and Rum.

Hennessy Story Online Competition HENNESSY has announced the launch of ‘Hennessy Stories’, an online competition dedicated to unveiling and sharing the best stories from Hennessy devotees across Ireland and to find out what Hennessy means to the Irish public. Since January 14, fans of the Hennessy Cognac Ireland Facebook page (www.facebook.com/HennessyCognacIreland) can upload their unique Hennessy stories and memories, revealing what Hennessy means to them, via a specially designed Facebook application. There are a number of exclusive prizes on offer throughout the year for the best stories, kicking off with VIP tickets to the 21st Hennessy Gold Cup, which took place on February 6 at Leopardstown Racecourse.

Rosemount Launches New Facebook Page TO celebrate the launch of the new Rosemount Facebook page, the stylish Australian wine brand has created a Facebook App, which lets you tell your closest friends you’re thinking of them and also gives you the chance to win some great prizes to enjoy together. The Diamond Friends competition is open from now until June 30, 2011, with some amazing prizes up for grabs, including a VIP trip for you and three friends to Monte Carlo, staying at the stunning Fairmont Hotel and enjoying a helicopter ride over the city. All you have to do is become a fan of the Rosemount Facebook page www.facebook.com/RosemountUKandIreland and nominate a Diamond Friend to be in with a chance to win.

International Wine Person of the Year ADOLFO Hurtado (pictured), Chief Winemaker and General Manager at Cono Sur, was chosen as International Wine Person of the Year by The lrish Mail in their 2010 Wine List. Hurtado stood out for overseeing the “phenomenal growth of the label, while maintaining a commitment to the environmentl” This is a great achievement for Cono Sur and its General Manager and a testimony to the efforts of the company to maintain its promise of sustainability.

27


January/February11On

the Vine

The French Collection Jean Smullen looks at the performance of French wines on the Irish market, and highlights some must-stocks for your shelves.

Let

us take a look back 21 years to the year 1990, when the wine market in Ireland had a very different focus from today. A generation ago, French wine dominated, with 54.7% of the Irish market or 807,000 cases. Back then, total wine sales were a mere 1.7m cases per annum and New World wines had yet to make an impact. Move forward a generation and you find a different story, New World wines dominate the current market of 7.9m cases, and account for just over 70% of all wine sales. Today, France’s share is 13% of that market, which is still a healthy 1.2m case sales annually. In a nutshell, the Irish are drinking a little more French wine that they did 21 years ago but because of the entrance of wines from countries such as Australia, Chile, South Africa, New Zealand, the USA and Argentina, sales of French wines have been greatly eclipsed. It should be noted though that French wine still accounts for the lion’s share of European wines sales in this country. MAT figures to September 2010 indicate that France holds third place in terms of volume sales in Ireland, behind Australia and Chile, with volume sales of French wine showing a slight increase of 0.5% in the period September 2009-v-2010. The only other European countries to fea-

28

ture prominently on this market are Spain, in fifth place, and Italy, who are sixth overall (Source: ACNielsen Sept 2010).

The Future for French Wine So what does the future hold for French wines here? There are many positives that need to be explored. The EU have changed wine laws to complete with the easy-to-understand New World labelling that allows the name of the grape variety on the bottle. New

European wine regulations now allow European countries to mention both grape variety and vintage on their labels. The French AOC wine law has become APO (Appellation de’Origin Protegee) and the Vin de Pays wines (country wines from a specified areas) are now known as IGP’s (Indication Geographique Protegee). These new measures aim to make the labels easier to understand to help French producers to sell their wines. One of the strongest selling points France has is its enormous connec-


January/February11On

tion to the culture of food. Many Irish people visit France on a regular basis and French cuisine is considered by many consumers to be the best in the world. With more and more independent wine retailers diversifying into food products such as cheese, charcuterie, chocolate, chocolate spreads, jams, and other delicatessen products, the synergy between the French culinary heritage and their wine styles is easier to highlight, especially in-store when the customer is making that all important purchase. It should also be remembered that in terms of trading up to higher price points, when the average customer wants to spend for a special occasion, their philosophy tends to be “If it’s French, it must be good!”

The Big Brands Branding is another factor that helped to raise awareness for New World wines, but the French were doing this long before the New World existed. One of the most well-known Bordeaux wines was created as a brand almost 80 years ago. Mouton Cadet was devised in 1930 by Baron Philippe de Rothschild when he decided not to name that vintage after the Chateau but named the wine Mouton Cadet instead. He was the younger son (“Cadet” in French), so that Mouton Cadet was year he offered devised in 1930 by his customers a Baron Philippe de declassified verRothschild and sion of the famous is now available Chateau Mouton in 150 countries and sells over 12m Rothschild. bottles every year. Mouton Cadet

is now available in 150 countries and sells over 12m bottles every year. Their entry level range is available in red, white and rosé and the wines are distributed in Ireland by Cassidy Wines. Contact Amanda Cardiff; email: acardiff@cassidywines.com Tel: (01) 4668900 for more information. Barton & Guestier is another leading French brand name, known to millions of consumers worldwide. The Barton & Guestier range represents the wonderful diversity of French wines from the main winegrowing regions. Tomas Barton is the range of reserve wines, which pays homage to the man of the same name who came to Bordeaux from Ireland in 1725. He quickly became the most important wine merchant in Bordeaux and his spirit has been preserved in this mid-priced range from B&G. B&G Chateau Magnol is another signature wine from the company and a multiple award winner. B&G wines are distributed in Ireland by Gleeson Group (incorporating Gilbey’s Wines). Contact Julia Kennedy. Email: juliakennedy@gleesongroup.ie or Tel: (01) 6239158 for more information. Febvre & Co. have a great range of branded French wines from Clarence Dillon called Clarendelle, as well as an impressive list of fine wines from Bordeaux, Burgundy, Loire, Alsace, Rhone, Languedoc Rousillion and Provence. They recently took over the agency for the great Beaujolais wines of George DeBoeuf, another great addition to their outstanding French

the Vine

portfolio. For more information contact Kerri Judge. Email: kjudge@febvre.ie. Tel: (01) 2161400 Other French specialists worth having a look at are Tyrrell & Co., who have a great range of Rhone wines and specialise in the South of France. Contact Simon Tyrrell on Tel: (045) 870882 or email: simon@TyrrellandCompany.com. Tindal Wine Merchants have recently moved office to B4 Centrepoint, Rosemount Business Park, Ballycoolin, Dublin 15. Contact Anthony Tindal on 01 8665680 or email atindal@tindalwine.com. Their French range includes Vignobles Dourthe, Bouchard Pere & Fils, William Fevre, Domaine Henry Pelle among others. Don’t forget either the famous wines of the Cazes Family (owners of Chateau Lynch Bages in Bordeaux), who have a wonderful range of competitively priced wines in the Cazes Family collection, which is distributed by Barry & Fitzwilliam. Tel: (01) 6671755 email info@BandF.ie. Now more than ever, wine retailers should not ignore French wine. With the market for French wines showing a slight increase and more food products available in specialist shops, now is the time to re-look at your wine portfolio and make sure that it includes a few of the classic French styles. With an ever more knowledgeable consumer out there, it is guaranteed to help your margins, particularly at mid-price level.

29


January/February11Healthy

Options

Healthy Profits Irish consumers are now paying more attention to their bodies and are becoming more health conscious and turning to healthier foods and beverages.

Despite

the difficult economic climate, health and wellness food and beverages products have been recording positive growth, according to the latest report into the sector from Euromonitor International, with the result that healthy options seem to be pretty much recession-proof, thanks to consumer desire for tasty, nutritious foods that are good for them. Soaring obesity rates have led to a wealth of products being brought to market for those who want to maintain a healthy lifestyle, according to Euromonitor, who maintain that ‘Better For You’ (BFY) food and beverages are now mainstream in many categories such as reduced fat milk, and organic products are accounting for a higher percentage of total food and beverages. In order to appeal to consumers not just in health terms but also in terms of their palate, many manufacturers, including Weight Watchers from Heinz and Green & Black’s, are trying to appeal to those consumers who want to take care of themselves, yet not compromise on taste. Health and wellness food and beverages are not only better for one’s health 30

but enable consumers to treat themselves with high quality products and great tastes. Manufacturers have invested in new technologies to create healthier alternatives to satisfy this consumer demand. Euromonitor report that organic products are widely available across the country and are likely to increase their share of overall sales, while BFY products are also expected LowLow is a power-house brand within dairy, claiming the number one branded SKU in the to maintain high sales. This is standard health spreads category with LowLow likely to lead to strong performOriginal 500g. ance in the health and wellness at least a 20% sodium reduction in market and higher growth rates their brands.” are expected than for the overall packA recent report into ‘Emerging aged food market. Ingredients in Food and Drinks’ Manufacturers across the country from www.reportbuyer.com analyses have been moving to reduce the salt the ways manufacturers have been content in their products. Corporate responding to the consumer drivers Social Responsibility strategies, couof naturalness and health. These pled with new health and nutritional include using natural ingredient policy decisions across Europe and formulations which offer benefits of North America, mean that many nutritionally rich, quality calories. mainstream food brands are currently Indeed, the report found that ‘Natural’ aiming for a 20% sodium reduction, was the top claim in food and drink according to Conor Hyde, MD of product launches, with a share of Bullseye Food Marketing: “We’re see9.24% in 2008 rising to 10.03% in 2009. ing a situation where companies are Regulatory pressures on manufacturall scrambling to lower the overall ers are firmly in the direction of maksodium in their products. Reduced ing food and drinks products healthier, sodium while trends in food and drink ingresoups, dients labelling regulations are also bread, becoming more restrictive. In develcrisps, oped markets, concerns about natural wraps and and healthful ingredients will fit in readywith consumers’ concerns about food meals will and drink ethics - increasingly, healthbecome ful will also mean ingredients that are an responsibly sourced in terms of social increasand environmental sustainability. ingly familiar sight on Kerry Foods superLowLow is starting 2011 with a fresh market new look. The healthier dairy brand is LowLow is starting 2011 shelves. kick-starting 2011 with a make-over, with a fresh new look, Most comwhich aims to bring fun, freshness which aims to bring fun, panies are freshness and femininity to and femininity to the Irish dairy aiming for category. the Irish dairy category.


/LNH WKH QHZ ORRN ORYH WKH VDPH JUHDW WDVWH


January/February11Healthy

Options

and veg we should be aiming to eat LowLow is a power-house each day. The Lifeforce pulse range brand within dairy, claiming includes raw red and green Lentils, the number one branded SKU along with their ready-to-serve range, in the standard health spreads which does away with lengthy soakcategory, LowLow Original ing. Their seed range is extensive and 500g, and is also the top sellincludes sunflower, sesame (dehulled) ing healthy cheese brand in the and pumpkin seeds. natural cheese category (Source: AC Nielsen MAT 52 Weeks to December 2010), making it a must stock brand. LowLow offers a unique The Weight Watchers from Heinz frozen ready meal range offers an extensive proposition across the butter range of market leading recipes like spreads and cheese categories Chicken Tikka Masala. as it delivers great taste with at ing recipes such as Chicken The hugely popular go ahead! range, one least one third less fat! In surveys, of Ireland’s leading healthy snack brands. Tikka Masala, Creamy Chicken & three out of four people agreed that Mushroom Pasta and Ocean Pie. LowLow butter spreads and cheese Proving that you can still have the taste as good as their full fat competiMcVitie’s go ahead! naughty treats that you love, Weight tors (Source: B&A Research, November Ireland’s favourite healthier biscuit Watchers from Heinz also offers a 2009). brand, go ahead!, with its range of delicious range of frozen desserts, 2011 promises to be an action great tasting better-for-you snacks, including delectable recipes such as packed and exciting year for the is teaming up with Curves, Ireland’s Belgian Eclairs and Double Chocolate LowLow brand. Kerry Foods are largest women-only chain of health Brownies. investing in an extensive marketing and fitness clubs, to offer consumers Other successful offerings from campaigns for the dairy brand this an exclusive deal for an amazing 60% Weight Watchers from Heinz include year, starting off with the LowLow off the Curves joining fee and their Pizza in popular varieties such as butter spreads relaunch in February… first 30 days free. Consumers simply Pepperoni and Vegetable Supreme, as watch this space! pick up a delicious go ahead! snack well as Weight Watchers from Heinz in-store and take their till receipt to Oven Chips, all of which further meet any Curves club (50+ nationwide) to Weight Watchers consumers’ demand for healthier veravail of this fantastic feel good offer. from Heinz sions of the foods they love that they go ahead! have carefully selected Weight Watchers from Heinz claims can enjoy every day. the perfect balance of ingredients to undisputed leadership of the frozen All products within the Weight create their delicious on-the-go range ready meal sector with 35.3% volume Watchers from Heinz range exclusiveand now their golden baked bars share of the market which is valued ly feature the Weight Watchers Prowith a tasty fruit filling, contain 50% at €16.5m (Source: TNS, December Points Value per serving on -pack. less saturated fat, as well as having 2010). Manufactured in Dundalk, no artificial flavours or colours. The County Louth, the Weight reformulated range will also now conWatchers from Heinz range tain a selection of vitamins including: of frozen ready meals Calcium, Iron, Niacin, Riboflavin (B2), continues to drive the Vitamin B12, Vitamin D, Vitamin B6 frozen ready meal category and Thiamin (B1). with convenient meal solutions in both traditional and ethnic varieties. The range has everything to offer consumers who are seeking to lead a healthy Lifeforce seeds and pulses are a valuable source of lifestyle but who expect not to protein, with the ready-to-serve range, which does away with lengthy soaking, proving particularly popular. compromise on taste. To mark the recent launch of Pro-Points, the Weight Watchers Lifeforce Seeds from Heinz range has undergone a and Pulses redesign with improved photography Lifeforce seeds and pulses are a on-pack, resulting in increased appevaluable source of protein and can be tite appeal. used in a large variety of homemade The Weight Watchers from Heinz dishes. frozen ready meal range offers an Pulses count as one of the varigo ahead! Fruit Bakes, one of the extensive range of market leadety of at least five portions of fruit stunning products in the healthy range. 32


January/February11Commercial

Transport

Commercial Transport Supplement Mercedes-Benz Vito Named Irish Van of the Year 2011 THE Mercedes-Benz Vito has been voted Continental Irish Van of the Year 2011 by the Irish Motoring Writers Association. The MercedesBenz Vito, with 50 points, finished ahead of the Volkswagen Transporter on 43 points and the Nissan NV200 on 36 points. All nine voting members of the Irish Motoring Writers Association van jury took part. Value-for-money, reliability, versatility and lasting residual value were among the attributes sought by the judging panel. Presenting the award to Ciaran Allen, Sales Director of MercedesBenz Ireland, Paddy Murphy of award sponsors, Continental Tyres Ireland, commented, “The Vito has won the endorsement of the Irish Motoring Writers and in the current tough CV market conditions, I am sure the award will support the van’s success in the Irish market.” The list of eligible vans for the 2011 title included the Fiat Doblo

Pictured are (l-r): Michael Moroney, Chairman, IMWA; Ciaran Allen, Mercedes Benz; Gerry Murphy, IMWA; and Paddy Murphy, Continental Tyres Ireland.

Cargo; Mercedes-Benz Vito; Nissan NV200; Opel Movano; Renault Master; Volkswagen Caddy and the Volkswagen Transporter. The Vito succeeds the Ford Transit Connect, last year’s winner. The new Mercedes-Benz Vito van is priced from €19,190 (plus VAT), and

is available in standard, high roof and long-wheelbase versions. Its features include a new engine line-up and specifically designed six-speed van gearbox. Other improvements are increased payload, improved chassis and interior and a newly designed front with colour co-ordinated bumpers.

New Volkswagen Caddy Van VOLKSWAGEN Commercial Vehicles introduced a new generation of the top-selling Caddy late last year. The compact van with its practical side sliding door system has been enhanced in every area. Prices start at €14,710 including VAT for the entry level 75 bhp version. The new arrival is available with six new TDI engines, with up to 21% lower fuel consumption, a completely restructured model range, a more precise, fresh front design in the style of the new Amarok and current T5 generation (Transporter, Caravelle etc.). An upgraded interior, now with a removable second row of seats, remote central locking, plus further reduced maintenance costs, make the new Caddy one of the most innovative urban delivery vehicles and compact

vans available. There is also a new range of colours available. The new Caddy will be the first urban delivery vehicle and compact van in this class to be equipped as standard with ESP on all models. Volkswagen also points out that the new Caddy will also be the only vehicle in this market segment available with the option of an efficient 6 or 7-speed direct shift gearbox (DSG) and Hill-Start Assist. The new generation Caddy will also be available with an extended wheelbase (Maxi) and – uniquely in this market segment – with (4MOTION) 4-wheel drive. Meanwhile, the judges of the Fleet Van Awards 2010 in the UK have given their top award of Fleet

Van Manufacturer of the Year to Volkswagen Commercial Vehicles, as well as collecting the Medium Panel Van of the Year Award for the new Transporter, while the Volkswagen Caddy and Crafter vans were also finalists in the Small Van of the Year and Large Panel Van of the Year categories, giving Volkswagen one of the most successful ranges of vans available. 33


January/February11Commercial

Transport

New Toyota Land Cruiser Arrives THE new generation Land Cruiser has just gone on sale. It is available in two body styles, a short- and a long-wheel base, and is available in four different spec grades. The Land Cruiser is one of two key commercial models in the Toyota range, along with the Hiace Van. From the outside, it gets a new over-sized front bumper, incorporating integral fog lamps. It reinforces the Land Cruiser’s broad, powerful stance. A new front grille is framed by large, functional headlamp clusters. In side profile, Toyota has created a more fluid and dynamic appearance. To the rear, flanked by prominent, high-visibility LED lamp clusters, the

tailgate is deeply indented into the rear bumper, providing a practical, flat and level access step, complete with hardwearing cover for the interior load-space. Both the door mirror-mounted turn indicators and the rear lamp clusters use high-visibility LEDs in place of conventional lamps. The new Land Cruiser is now Euro5 compliant and fitted with a Diesel Particulate Filter (DPF) as standard. The 3.0 litre D-4D (190) engine now has increased power of 10% and torque of 2.5%. CO2 emissions have been reduced greatly from

243g/km to 213 g/km (5-door, A/T) and this version returns 34.8 mpg in the combined cycle. This results in the Land Cruiser passenger dropping a TAX band from G to F with road tax at €1050 pa.

New Opel Combo will be built on Fiat Doblo Platform FIAT and Opel have signed a contract agreement whereby Fiat will supply vehicles comprising several variants to Opel, commencing December 2011. The model will replace the current Opel Combo light commercial vehicle, which reaches the end of its lifecycle in the fourth quarter 2011, so the new model should be worth waiting for. The new vehicles, based on the same platform as the Fiat

Doblo models, will be produced in Turkey where the Doblo is manufactured. They will be sold by Opel dealers in Ireland and throughout Europe, starting in January 2012. Opel will retain the Combo name for this vehicle range which will include a number of derivatives, including cargo vans, passenger vehicles and chassis cabs.

Pick-Up a Mitsubishi L200 MITSUBISHI Motors is celebrating for the fifth consecutive year after the legendary L200 won the esteemed What Van? award for ‘Pick-up of the Year’. For many years, the L200 has led the way with its innovation, styling, specification and its 4x4 capabilities. With a fully comprehensive range of pick-ups, the Mitsubishi L200 remains the leader in its segment at a staggering 32.6% of the market share year to date. “It is an honour for us to receive this award as it firmly establishes the L200 as the clear favourite among commercial vehicle operators,” noted a Mitsubishi Motors spokesman.

Citroen is ‘Green Van Manufacturer of the Year’ CITROEN has just been voted Green Van Manufacturer of the Year at the UK’s Fleet Van Awards 2010. Citroen’s strong environmental credentials include the use of exceptionally fuel efficient, low emission HDi diesel engines - with up to 30% bio-diesel compatibility - and across the board availability of Trafficmaster Smartnav - with real-time fleet management capability to help reduce fuel use, carbon footprint and costs. All these were amongst the key strengths considered by the Fleet Van Awards judging panel. In awarding Citroen the Green Van Manufacturer of the Year title, this panel of major UK fleet operators and independent van experts also considered the company’s wide choice of clean, economical LCVs and its unique Ready to Run range of Dual Fuel (petrol/LPG) vans. Citroen’s achievement in winning the Fleet Van Green Van Manufacturer of the Year Award follows hard on the heels of the Company’s success in September’s ALD Automotive/TOTAL ECO 10 MPG Marathon. Here, for the third year in succession, the Citroen Nemo was the ‘UK’s Most Economical Van’, returning an exceptional fuel economy of 81.93mpg, beating its official combined cycle fuel consumption figure of 64.2mpg by no less than 27.62%. 34


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January/February11Commercial

Transport

Renault’s Van Scrappage Scheme Drives On AT its launch just over four months ago, Renault Ireland describes its van scrappage scheme as a great opportunity for van owners to scrap their five years or older van and purchase one of Europe’s number one best selling van range. The scheme gives qualifying van owners the opportunity to purchase a new Renault Kangoo from €8,990 ex-VAT, a Trafic from€12,990 ex-VAT or the new Master from just €14.990

excluding VAT. In addition, Renault tells us that they can also avail of the 5 years unlimited mileage warranty as standard, a major plus for all van owners. Renault’s ‘Scrap My Van’ offer applies to light commercial vehicles aged 5 years and older, registered on or before January 31, 2006. Renault has been the LCV market leader in Western Europe for the past 12 years. Their market share has increase further recently, driven primarily by the launch of three new models last year: New Master, New Trafic and Kangoo Van. Renault’s LCV range now spans load volumes of between 2 and 22 m³, in order to meet all the needs of business customers. Eric Basset, MD of Renault Ireland, is confident the scheme and the new range will be a success: “There are over 200,000 vans in Ireland aged five years or older and many owners want,

or need to change but haven’t been able to until now. The Scrap My Van scheme not only gives small and medium business owners the chance to buy a brand new Renault van but you also get five years unlimited mileage warranty on top, making it a very attractive proposition for van owners. “We are very proud of our new range of LCVs, with three versions of the Kangoo now available to suit different business types, the new Trafic with its increased performance 2.0 dCi engine and the all new design Master which comes in either front or rear wheel drive specifications and has one of the lowest running costs in its segment.” Meanwhile, Renault recently won no less than four awards in the 2011 What Van? Awards, including Van of the Year. The key component for two of the trophy wins, Van of the Year and Large Panel Van of the Year, was the French brand’s flagship New Master range, which only launched this year.

Nissan NV200 Going Well THE NV200 or new Vanette, Nissan’s global all new compact van, has enjoyed a successful first sales year here in Ireland. Nissan’s compact light commercial vehicle has set new standards in terms of internal space in relation to the external dimensions. The NV200 is a real segment breaker with exterior dimensions comparable to a car derived van and cargo capacity of a higher class. It is 4.4m long, 1.86m tall and 1.69m wide and comes with a cavernous cargo space. Intelligent packaging delivers a cargo load bay more than 2m in length, sufficient to carry two standard Euro pallets at the same time. The cargo floor is the lowest in its category, at only 524mm. As a result, the NV200’s load cube offers a cargo

volume of 4.2 cubic metres, around 25% greater than the competitors’ average, offering an additional 1 cubic metres. The new NV200/ Vanette is on sale with recommended retail price of €15,925 including VAT, and will include power windows and power locking in the specification. It will compete with the likes of the Ford Transit Connect and the Volkswagen Caddy. Meanwhile, Nissan has unveiled its all new heavy van. The new NV400, which will hit the roads of Europe later this year, adopts a bold interpretation of Nissan’s familiar ‘balanced angle strut’ grille, giving it assertive on-road presence. Its self-assured, grounded front-side appearance was designed at

Nissan Design Europe to accentuate the new van’s undoubted strengths. Underlining the prime importance of the LCV business for Nissan, the company has confirmed plans to launch a zero-emissions small van in 2013. The launch will serve the large number of customers who need to match the goal of growing their businesses efficiently with their legitimate concerns for the environment.

Cartell.ie Warns on Purchasing Vehicles WEBSITE Cartell.ie is advising consumers to be vigilant, and aware of the risks of buying a second hand vehicle, which could be stolen. Jeff Aherne, Director with Cartell.ie, says: “The unfortunate thing is that an unsuspecting purchaser of a stolen vehicle has no come-back as title in the vehicle can never pass to him/her in this type of scenario and the sad reality is that the purchaser will lose the vehicle. To prevent against that scenario, we strongly urge prospective buyers to carry out a Cartell check before purchase.”

36


January/February11Commercial

Transport

Fiat Doblo Cargo wins International Van Award THE Fiat Doblo Cargo is the International Van of the Year 2011. The new van achieved 128 out of a possible 168 points, from a jury made up of 24 specialist commercial vehicle trade journalists representing the same number of countries. Announcing the 2011 result, chairman of the International Van of the Year jury, Pieter Wieman said: “The winning van design had impressed the jury on a number of fronts and above all by the fact that Fiat has succeeded in widening the number of platform and body varieties to a higher number than any other van in this category. The jury was particularly impressed with the wide range of engines. Furthermore, it was impressed with

the driving qualities and the high level of comfort that the different versions of the Doblo offer.” Lorenzo Sistino, Fiat Professional CEO, commented, “New Doblo Cargo has been an innovative vehicle right from its concept. With Doblo, we offer our customers the widest choice, the lowest emissions and the most advanced technology in this category. The award is a testimony to our product innovation capacity. The fact that the Doblo has won demonstrates its level of innovation, but also the extent of the changes in order to respond to new customer needs.” It is offer in Europe with a choice of four low emissions, Euro 4 and 5

specification engines, the new Doblo comes in seven different forms Cargo, Cargo Maxi, Cargo SX, Cargo Maxi SX, Combi, Combi Maxi and Platform Cab - to offer something for a wide spectrum of van users.

Ford Transit Tops the Sales Charts IN addition to Ford being the topselling car brand, it has again dominated the commercial vehicle market in Ireland, with the Ford Transit retaining its crown as Ireland’s top selling van. The ever popular Transit is the centre-piece of Ford’s “Time to Trade” promotion

which is currently running at Ford Dealers. “With €1500 off a new Transit, we are hoping to tempt van operators who have perhaps been forced to put off renewing their vehicles because of the economic downturn,” says Pat Brazil, Ford Ireland Commercial Vehicle Sales and Marketing Manager. “Our message to those customers is: there has never been a better time to talk to us about a tradein”. Deals are available across the Ford range, including the Fiesta Van, Focus

Van, Transit Connect and the rugged Ford Ranger. The iconic Ford Transit has just celebrated 45 years on the go and has been the backbone to business in Ireland since it first arrived here. Over 6m Transits have been put to work all over the world – with more than 120,000 here in Ireland – and no other commercial vehicle comes close to it in terms of hours spent at hard graft. With over 100 configurations, it is the ultimate in versatility – whatever the task at hand, there seems to be a Transit to suit it. In these times, all operators are looking for reliability in their vehicles, and their continuing faith in Transit is a testament to its dependability.

Mercedes-Benz Tops Irish HGV Market FOR the second year in succession, MercedesBenz heavy commercial vehicles have proven to be Ireland’s favourite truck. Figures released by the Society of the Irish Motor Industry for the year just ended show that sales of Mercedes-Benz Actros, Axor and Atego trucks totalled 161 units, equal to a 15.8% market share. In second and third place were DAF and Volvo with 147 units (14.4%) and 118 units (11.6%) sold respectively. The overall number of heavy commercial vehicles registered in 2010 came to 1,020 units, a reduction of 131 units (-11.4%) compared with 2009 - a year in which Mercedes-Benz also topped the market with 199 units (18%) sold. 37


January/February11Commercial

Transport

Continental Irish Van of the Year 2011 Category Winners such attributes as load capacity, reliability, overall versatility, cost of ownership and drive comfort. Presenting the awards to Eddie Kavanagh, Land Rover Ireland, and Niall Phillips of Volkswagen Ireland, Paddy Murphy of Continental Tyres Ireland commented: “These two great vehicles have won the valuable endorseNiall Phillips, Product Manager, Volkswagen ment of the Irish Ireland, accepts the award for the Continental Motoring Writers Irish Car Derived Van of the Year 2011 from from Michael Moroney, Chairman of the Irish Motoring Association. I am Writers Association. Also pictured are IMWA van sure that winning juror Gerry Murphy (left) and Paddy Murphy of this Continental sponsor, Continental Tyres. Irish Van of the that have won the approval of our Van Year Category Award will Jury,” noted Chairman of the Irish support the success in the Motoring Writers Association, Michael commercial marketplace Moroney. for both the Discovery 4 The Commercial SUV and Car and the Golf Van.” Eddie Kavanagh, General Manager of Land Rover Derived Van of the Year titles are cat“The Continental Irish Ireland receives the award for Continental Irish Commercial SUV of the Year 2011 from Michael egory awards under the umbrella of van category awards are of Moroney, Chairman of the Irish Motoring Writers particular interest to Irish the Continental Irish Van of the Year. Association (IMWA) in respect of the Land Rover The overall Continental Irish Van of van / commercial drivers Discovery 4. Also pictured are IMWA van juror the Year award for 2011 was won by and fleet managers, as they Gerry Murphy (left) and Paddy Murphy of sponsor, the Mercedes-Benz Vito. highlight the niche models Continental Tyres.

THE Land Rover Discovery 4 and Volkswagen Golf Van were voted Category Winners in the Continental Irish Van of the Year 2011, in the Commercial SUV and Car Derived Van categories respectively, by the Irish Motoring Writers Association (IMWA) Van Jury. All nine voting members of the IMWA Van Jury took part in the vote. In deciding on these category winners, the jury members took into account

TomTom Alerts Drivers to Speed Enforcement Zones TOMTOM has launched new content for its sat nav devices, which will alert users when they are entering or exiting one of the new speed enforcement zones in Ireland. To help significantly reduce the incidence of fatal and serious injuries and improve road safety, An Garda Síochána has identified over 700 locations with a history of speed related collisions. TomTom has developed a way of alerting drivers to raise awareness when in these zones to ensure they drive safer and more responsibly. As soon as the driver approaches a Speed Enforcement Zone, an icon will appear on their TomTom screen and a sound will also alert them. The icon will remain visible while they are driving in the Speed Enforcement Zone. When approaching the end of the zone, the driver will be alerted with a sound and the icon will disappear.

Ford’s Transit Connect Electric Van FORD debuted the new Transit Connect Electric van on the first ever RAC Future Car Challenge, a dynamic showcase for electric, hybrid and low-emission vehicles. The Ford Transit Connect Electric is a zero-emission, pure electric-powered version of the award-winning Transit Connect light commercial vehicle and goes on sale in Europe later this year. It features a state-of-the-art lithium ion battery pack with a capacity of 28kWh and a chassis-mounted 55kW electric traction induction motor. With a range of up to 80 miles, it has a top speed of 75mph. The Transit Connect Electric’s lithium-ion battery pack is charged via a standard power outlet – an onboard converter then charges the battery pack. Fully charging the batteries takes under 10 hours using a household 230 volt supply. 38

About the Author PADRAIC Deane represents Ireland on the ‘World Car of the Year’ jury. In addition, he is the Irish juror for selection of the ‘World Green Car’, the ‘World Performance Car’, and the ‘World Car Design of the Year’. He is also in his tenth year as Ireland’s juror for the ‘International Engine of the Year Awards’, which includes the selection of the ‘Green Engine of the Year’ and The ‘Best Performance Engine of the Year’. In addition to his expansive role at Automotive Publications, he also writes syndicated consumer motoring columns weekly in many regional newspapers, as well as national newspapers and magazines.


January/February11What’s

Blue Dragon’s Multi-Million Euro Relaunch

New

Extra’s Ice New Range

CHINESE New Year 2011 sees Blue Dragon embarking on a multi-million euro re-launch, encompassing a new brand identity, as well as innovative new products and heavyweight consumer and shopper support, including a national TV advertising campaign and an integrated communications programme. The brand’s packaging is being refreshed with a new vibrant and authentic Oriental tapestry design and a new logo. Blue Dragon are launching six popular and authentic Cooking Sauce flavours (Chow Mein, Sweet Chilli, Sweet & Sour, Chinese Curry, Thai Green and Thai Red), as well as four new Sticky Sauces (Chinese BBQ, Char Sui, Peking and Teriyaki), Stir Fry Shots (Spicy Satay, Sweet Sour, Chilli Coconut, Sweet Chilli, Wasabi Plum & Szechuan Peppe) and four new Paste variants (Chinese, Thai Laksa, Thai Red and Thai Green).

WRIGLEY will be reinforcing Extra’s repositioning as a gum brand that not only offers freshening but also provides consumers with wider oral care benefits. 2011 will therefore see the launch of three new products - Extra Ice Peppermint, Extra Ice Spearmint and Extra Ice White – all of which have been accredited by the British Dental Health Foundation accreditation. Available from March, Wrigley’s Extra Ice Peppermint and Extra Ice Spearmint will be relaunched to include Microgranules, product speckles and Xylitol, an ingredient with proven dental benefits, including prevention of plaque formation, while Extra Ice White is scientifically proven to help remove stains and maintain teeth’s natural whiteness.

Pall Mall Reduced in Price PJ CARROLL is dropping the Recommended Retail Price (RRP) of one of its cigarette brands by 50c. This move comes at a time of seemingly unstoppable smuggling problems that have not reduced, despite stable legal prices since 2009. This brings the RRP of a packet of 20 Pall Mall from €7.75 to €7.25, since February 7, making it the lowest-priced cigarette packet available in the Republic of Ireland. PJ Carroll believes it is the first time in more than 30 years that a tobacco product has had a price cut in Ireland.

NIVEA Pure & Natural

Irish Pride Vita Kids

WITH 95% of the ingredients of natural origin, the new NIVEA Pure & Natural Face and Bodycare range has been developed by NIVEA scientists to deliver incredible results in affordable products, which are free from Parabens, Silicones, Colourants and Mineral Oils. The lead ingredient is 100% organic Argan Oil, which contains three times as much Vitamin E as Olive Oil and is a natural antioxidant, while the anti-wrinkle range also includes the Burdock fruit, which helps with collagen production and therefore firms skin. The NIVEA Pure & Natural Range includes Moisturising Day Cream for a variety of skin types, as well as Facial Cleanser, Facial Toner, AntiWrinkle Day and Night Care, and Body Lotion.

VITA KIDS, from Irish Pride Bakeries, is a new white bread packed with the vitamins and minerals and essential Omega 3 that kids need to keep them fit and healthy. Irish Pride Vita Kids is preservative free, has 25% lower salt and is a source of Omega 3, folic acid, vitamin C, iron, calcium and vitamin D to help build healthy bones, blood and bodies. “We developed Vita Kids following a year-long research and development project supported by Bord Bia,” stated Therese Lynch, Managing Director, Irish Pride. “Our objective was to create a bread that all children would love and that would address the main areas of nutritional and dietary concern for our children. Although the technology and cost involved in bringing Vita Kids to life significantly exceeds that of a standard bread, we are delighted to be in a position to offer this nutritionally important bread at an affordable price.” See www.irishpride.ie for more information.

Charleville Relaunches with Integrated Campaign CHARLEVILLE relaunched in Ireland earlier this year with a heavyweight integrated advertising campaign. Celebrating the town of Charleville’s passion and healthy obsession with the making and enjoyment of Charleville cheese, the campaign included TV, radio, outdoor and PR, as well as sponsorship of the weather on Today FM. “The passion that goes into making Chareville cheese, which came across so well in the TV ad and which was heard on radio stations across the country, was then effectively captured in our outdoor executions and POS, with the portrayal of some Charleville quirky home comforts,” said Jennifer Hall, Senior Brand Manager, Charleville. “Our integrated campaign has played a key role in placing the brand top of mind with consumers.” 39


January/February11Shelf

Life

Shelf Life STAFFORD Lynch are pleased to announce they have been successful in securing the agency for the Baxters brand in Ireland. The Baxters range of products includes soups, condiments, beetroot, preserves, chutneys and pickles. With over 150 products available in the range, a nationwide distribution drive will increase visibility of the brand in all retail sectors. In addition to the Baxters brand, Stafford Lynch will also be carrying the Simply Delicious, Garners and Jack Daniels BBQ sauce range of products. Simply Delicious is an organic, gluten free range of six different condiments, including rich mayonnaise and horseradish sauce. Garners is a range of pickles and chutneys, delivering high quality ingredients, and a tasty addition to any meal. Jack Daniels licensed BBQ sauces are versatile, and perfect for dips, BBQ, roasting or basting. For further information on any of the Baxters, Simply Delicious, Garners or Jack Daniels BBQ Sauce products, please contact Stafford Lynch on (01) 8023100 or info@staffordlynch.ie LIFEFIBRE Co. I Love My Heart is a new oat bread which has been launched to reduce and maintain cholesterol. This bread was developed following extensive consumer research supported by Bord Bia that identified a gap in the market for a heart healthy bread. LifeFibre Co. I Love My Heart has been baked using special oats with higher levels of Beta Glucan than standard oats, which is proven to reduce blood cholesterol. It is the only bread in Ireland that has sufficient levels of Beta Glucan to make this claim. LIPTON Fruit & Herbal Tea have been announced as the new sponsor of ‘The Strawberry Alarm Clock’, FM104’s popular breakfast show. Each weekday morning from 6-10am, Jim Jim Nugent, Mark Noble and their 73,000 listeners will kick start their day with the fun and vibrant fruit and herbal teas from Lipton. “We are really excited to be the new sponsor of The Strawberry Alarm Clock on FM104. Lipton is a young and vibrant brand and FM104’s Strawberry Alarm Clock is renowned for its fun, fruity style so it’s the perfect combination to start your day,” said Liz Finlay, Marketing Manager, Lipton. Jim Jim and Mark are pictured with Eoin Mullen (centre) from Lipton. FOLLOWING the success of the 2010 easyFairs PACKAGING IRELAND show, PACKAGING IRELAND 2011 takes place on June 8 & 9 at the RDS Simmonscourt, featuring some of the biggest names in Irish and international packaging, who will be showcasing everything from renewable materials to the latest innovations in the industry. Repak will be hosting the very successful advice clinics, which are complimentary to visitors, and the ever popular learnShops will return with an array of keynote industry speakers, updating visitors and exhibitors on the latest trends and innovations within the industry. This trade-only event is where FMCG manufacturers, marketers and retailers can easily identify innovations, source solutions and strike up relationships. See www.easyfairs.com/packagingireland. 40

NESTLÉ Ireland’s 120 employees succeeded in raising €30,074 for the Jack & Jill Children’s Foundation charity last year. Employees organised and participated in a wide range of fund raising events, including mini-marathons, mountain climbing, a sky dive and a race night for the charity that provides home nursing care for children with brain damage who suffer from severe intellectual and physical developmental delay. Nestlé Ireland employees aim to raise another €30,000 for the charity in 2011. LAOIS based food company G’s Gourmet Jam exhibited at CATEX 2011 in the RDS recently, Ireland’s largest foodservice trade fair, alongside nine other Irish food companies, all participants of the Bord Bia / Enterprise Ireland Supplier Development Programme. The development programme aims to deliver increased foodservice sales for Irish food suppliers. Pictured at the event are (l-r): Garrett Dee of Enterprise Ireland, Irish Rugby Player Sean O’Brien, and Bord Bia’s Patricia Hogan and Clive Gee.

IT was with great sadness that we learned of the tragic death of Lynda Collins, wife of Superquinn Financial Director Richard Collins, who was killed by a falling tree on Dublin’s Waterloo Road. Our deepest commiserations go out to Richard, and the couple’s three children, Georgia, Robert and Juliana.


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