Retail News Jan/Feb 2013

January/February 2013

www.retailnews.ie|January/February 2013|Contents|3

Contents 2013 Off With a Bang IT’S only February and already 2013 is shaping up to be a seriously busy year for the grocery and FMCG sector.

We’d only just got through the busy festive and new year season, when one of the biggest scandals ever slammed Europe’s food industry, with the Food Safety Authority of Ireland’s finding horse-meat in products that were labelled as beef.

Originally viewed as a failing of Ireland’s food sector, the intervening weeks have revealed that Ireland’s food watchdogs are arguably the most effective across the EU, uncovering what turned out to be a massive issue, with potential criminal implications, as a myriad of branded and own brand beef products were found to contain horse-meat right across the continent. Certainly, the scale of the problem would suggest that this isn’t an accident and at the time of going to press, police across Europe have been investigating the situation. Whatever the outcome, it’s clear that Ireland’s food safety standards are extremely robust, which should be good news for our international reputation.

Another huge piece of news, with implications for the entire country, was the Government’s deal on those infamous promissory notes, which will see the names ‘Anglo Irish’ and ‘Irish Nationwide’ consigned to the history books forever. Richard Bruton TD, Minister for Jobs, Enterprise and Innovation, has stated that the deal with help Ireland to build on the major improvements we have made to our international reputation and to also improve confidence in the domestic economy. It will hopefully make life a little easier in the coming years for all of us and anything that will help to restore fragile consumer confidence to a state of health is to be welcomed.

News

4

Retailers assess damage from horsemeat saga.

Retail News Interview

18 Brian Donaldson, Chief Operating Officer of The Maxol Group, talks us through the group’s ambitious growth plans and the reasons behind their new brand identity.

5

New tobacco rules to impact on retailers.

6

Reducing red tape for retailers.

7

Strong growth for Dunnes Stores; ‘Food Works’ for entrepreneurs.

8

9

RGDATA: Restrictive car parking killing town centres; Late payments a live issue.

Food and drinks exports break €9m barrier.

30 Retail Ireland: Monthly Update

18

41 Survey suggests

retailers hopeful for 2013; New drivers licence photography policy will hurt retailers; Retail Ireland to hold first annual conference in May.

Beer Market

26 Molson Coors are investing heavily in craft beers. Niall Phelan, Director of the Emerging Markets & Craft Beer Division at Molson Coors UK & Ireland, explains the reasons why.

10 Slight increase in sales figures for Q4 2012; Floriculture a growth area for retailers; Irish van of the year named.

Confectionery

29 Eoghan Crawford,

10 Consumer Insight

16 Over 170 small food

Kathleen Belton Editorial & Marketing Director.

Senior Brand Manager, Cadbury Dairy Milk, talks us through the evolution of Joyville and assesses public reaction to the campaign to date.

and drink producers gathered recently for Bord Bia’s third annual Small Business Open Day, which revealed some interesting insights into the Irish consumer of 2013.

29

44 On The Vine

42 Increased duty, poor harvests and growing competition for available wine: Jean Smullen looks at the big challenges facing the wine industry in 2013.

Regulars & Reports

10 Industry News 20 Paper Products 30 Easter Confectionery Published by: Tara Publishing Ltd,

32 Healthy Options

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Editorial & Marketing Director: Kathleen Belton

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John Walshe

Web: www.retailnews.ie Email: kathleenbelton@retailnews.ie

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Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

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44 Market News 46 Shelf Life

4|Retail News|January/February 2013|www.retailnews.ie

News

Retailers

Damage

Horsemeat IRISH retailers are unlikely to face a loss in sales as a result of the horsemeat burger controversy, Retail News reports. Although suppliers forced to recall products have been hit with losses, retailers are unlikely to be left out of profit.

Frank Gleeson, Chairman at Retail Ireland, told us that although there may be a loss of confidence in certain product ranges, consumers are likely to substitute their spend across other products. “Broadly speaking, there won’t be any lost sales as a result of the burger scare.”

Gleeson doubted that the entire frozen meat category

Frank Gleeson, Chairman, Retail Ireland.

has been adversely affected.

“No, let’s be fair, this type of thing hasn’t happened before,” he said. “We’ve never had a problem in the food industry with this type of issue where product was incorrectly labelled. We have a very robust food safety system. The FSAI [Food Safety Authority of Ireland] are doing a good job.

They’re probably more ahead of the game than most countries.”

As part of the FSAI’s testing, a total of 27 burger products were analysed. 10 of these contained elements of horse DNA. One product from Tesco contained 29% horse meat. The resulting fallout, blasted across the world’s media, led to supplier Silvercrest Foods losing its contract with Tesco, Aldi and the Co-operative Group in the UK. The source of the contamination was allegedly traced to a Polish supplier.

Meanwhile, further test results confirmed that a raw material ingredient at Rangeland Foods, Co. Monaghan, was 75% horse meat.

While the controversy is a blow to Ireland’s €2 billion beef industry, particularly in regard to exports, it highlighted the

stringency of our food safety standards.

Professor Patrick Wall, former CEO at the FSAI, said that while the Irish food industry’s openness and transparency has drawn adverse publicity on the sector, “it sends out a signal that if people are engaged in substandard practices, it won’t be tolerated.”

Without Ireland’s transparency, the contamination may never have come to light.

An independent Spanish consumer group has found horsemeat in some beef burgers on sale in Spain and similar findings have come to light in France and other European countries, while the Findus lasagne issue highlighted the scale of the problem, so Ireland may have uncovered a panEuropean problem. “The Polish meat has gone everywhere else in the EU,” added Wall. “There are two issues here: horsemeat masquerading as beef; the second issue is purchasing specifications of the retailers not being adhered to.”

Ray Ellard, executive at the FSAI, said that Irish food safety is excellent for the most part.

“We tested product from several food plants in Ireland and the

issue only one arose in two of them - and one of them has been cleared since,” he said.

In the wake of the scandal, what can concerned retailers do to regain confidence?

“They can go back and talk to their suppliers and seek the necessary assurances that they are getting what they asked for,” explained Ellard. “Some retailers - it depends on their size - can do this themselves, because they send audit teams, or they hire independent auditors to check on hygiene and food safety issues. You should only buy from approved suppliers.”

Nevertheless, retailers remain vulnerable, Ellard acknowledges: “You are dependent on the reliability of the people you purchase from and your suppliers. A lot of the bigger retailers will insist on standards like ISO 22,000.

It’s not entirely foolproof.

Auditors don’t necessarily find everything.”

Wall attributes the equine DNA scandal in part to unfair business practices: “There is no such thing as high quality cheap food. There are tiers of quality at different price points. There is a market for the cheaper product, but if you

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News

Assess

From Saga Professor Patrick Wall, former CEO of the Food Safety Authority of Ireland. leave your suppliers with no margin, you have them scouting around for the cheapest possible ingredients.”

Gleeson, however, did not accept that manufacturer margins are squeezed. “I just think [Silvercrest] made a mistake in terms of sourcing the product,” said Gleeson.

“There’s competition in retail, manufacturing, the supply chain, all the way through. We don’t have a problem with our competitive model. The problem we have is someone provided a product that was inferior and sold as something different. It’s as simple as that.”

If there are any lasting lessons for retailers, it is to buy from reputable sources at all times. Since the safety levels in Ireland are reputable, it makes sense to purchase product solely manufactured within the country. “Buy Irish would be my view of the Irish supply chain,” agreed Gleeson.

“If [the burgers] had only been Irish products, there wouldn’t have been a problem. The fact it was imported was the issue.”

Retailers are advised to review purchasing specifications. Tesco has announced its intentions to undertake DNA tests on its food products, although this process is likely to be beyond the financial means of smaller supermarkets or convenience stores.

Wall concluded: “I think retailers are going to insist on DNA testing from all their suppliers. The retailers guard their brands. If you damage a retailer’s brand, you can expect to be de-listed. If you’re a company and you’re not prepared to jump out of a plane wearing a parachute packed by your suppliers, de-list them.

That’s the level of trust you need to have.”

New Tobacco Rules to Impact on Retailers TOUGH new proposals on the sale and manufacture of tobacco products may have a serious impact on Irish retailers, Retail News reports. The rules, designed to prevent children and young people from smoking, may also affect Ireland disproportionately to other EU states.

Vincent Jennings, CEO of the Convenience Stores & Newsagents Association (CSNA), said that people purchase tobacco products from a variety of outlets in Europe.

In Ireland, consumers tend to buy them from convenience stores and newsagents.

Furthermore, the rules are unlikely to be introduced uniformly across the EU. “A fairer system would be to bring in the regulations across Europe at the same time,” said Tara Buckley, Director General of RGDATA. “We’d find it unfair to sell something illegally in Ireland, while it’s legal to purchase it somewhere else and smoke it in Ireland. Retailers shouldn’t be disadvantaged compared to their European counterparts.”

The proposed rules, from EU Health & Consumer Policy Commissioner, Tonio Borg, include increased sizes of health warnings on cigarette packages, restrictions of internet sales, and enforcements of health warnings on herbal cigarette packets.

The decision to add a minimum pack size for Roll Your Own (RYO) brands will impact

Vincent Jennings, CEO of the Convenience Stores & Newsagents Association. retailers, according to Jennings.

“There are 55,000 Roll Your Own sales daily. Larger packs will reduce it to 22,000. Tobacco, like the Lottery, is a footfall generator. Not only do we earn from the profit margin, but a substantial number of customers make additional purchases.

People will buy RYO on a less frequent basis, so they’ll be shopping less.”

The decision to ban menthol cigarettes is likely to affect an older consumer segment than the one intended, while a decision to give cigarette packets a uniform “cuboid” shape will strip certain brands out of the market. These brands, Jennings points out, cater for an age profile “north of 50 years of age”. He adds: “It would be very difficult to suggest you’re attracting young impressionable smokers. You’re restricting consumer choice.”

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Reducing Red Tape for Retailers THE Government have announced plans to have a single portal for 50 retail licences by the end of 2013, which they claim will reduce the burden of licences by 33%.

SME retailers will be able to apply for all of their annual licencing requirements at a single time via a single portal by Q4 2013, as part of a Government plan to reduce the administrative burden of licencing requirements for businesses.

As part of Action Plan for Jobs 2012, Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, together with the Minister of State for Small Business, John Perry TD presented a report on licencing prepared by Forfás, together with a set of proposals to the Cabinet Committee on Economic Recovery and Jobs.

The report focused on 159 licences across key sectors of the economy – including retail, food & drink, hospitality & leisure,

Richard Bruton TD, Minister for Jobs, Enterprise and Innovation.

manufacturing, waste management, road haulage and construction – and found that there is potential to reduce the burden of compliance with licences by a third, including removal /amalgamation of up to 20 licences.

The Cabinet Committee agreed to proceed with the implementation of the recommendations in the report, including: • The introduction of one-stop-shop integrated online licencing systems for key sectors of the economy, including harmonisation of registration and renewal dates; • To proceed with the implementation of integration of retail licencing system, incorporating up to 50 licences, as a first-mover by the second half of 2013.

“A key part of the Government’s plan for jobs and growth is to reduce costs on businesses to make it easier for them to start-up, expand and create the jobs we need,” said Minister Bruton, who described the announcement as “part of a range of actions being taken across Government to improve competitiveness and reduce red tape, including the inclusion of a series of tax measures targeted specifically at SMEs in Michael Noonan’s recent Budget”.

From the second half of the year, retailers will be able to apply for all of their annual licencing requirements at the one time via a single website. It will mean significant savings in terms of time and costs for many hard-pressed businesses and entrepreneurs across the country, which will help more of them start-up, survive, grow, and ultimately protect and create more jobs, according to the Minister.

John Perry TD, Minister for Small

Business, noted how the end result “will be a one-stop-shop website for business licensing requirements”. He explained how this will “significantly simplify the process for business and cut down on the administrative burden, particularly for those businesses that require multiple licences, such as the retail sector.”

Martin D. Shanahan, Chief Executive, Forfás, noted how “getting a business started can require a range of different licences, with numerous applications and the requirement to deal with a number of Government departments or agencies.

For example, establishing a medium sized supermarket could involve up to 20 different licences. Our study shows that licencing is recognised as essential by business, but that the burden associated with many licences is high. Businesses are telling us that initiatives to reduce the regulatory burden would be very welcome.”

The Forfás review found that there is potential to amalgamate a number of sectoral licenses and that a single integrated licensing system would significantly reduce the licensing process for businesses, particularly in the retail sector, the construction and food and drink sectors.

There is significant potential to improve the way licences are processed and issued and to extend the renewal frequency of licences to reduce the burden on businesses, while still ensuring that the regulatory objective is achieved. Forfás also found that there is opportunity for greater use of risk based licensing to reduce the burden and associated costs for low risk and compliant businesses.

The full report and recommendation are available at www.forfas.ie.

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Strong Growth for Dunnes THE latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending January 20, 2013, show Dunnes Stores’ improving fortunes in recent months accelerating into the New Year with sales growth of 4.6%.

“4.6% sales growth is Dunnes’ strongest performance for four years and highlights the success of the ‘Shop and Save’ campaign launched in the run-up to Christmas,” explained David Berry, Commercial Director at Kantar Worldpanel. “Shoppers have responded well to this offer, picking up more items every time they shop and increasing the average size of their baskets by almost

€3 to €36.70, an increase of 9%. This has opened a considerable gap between Dunnes and its competition, with the average Tesco and SuperValu shop standing at €30.40 and €22.40 respectively.”

Berry noted how Dunnes’ consistent performance also stands out, with strong sales across a range of grocery aisles, including fresh produce, alcohol, soft drinks, crisps and also chilled convenience food.

“Tesco has seen its share of the grocery market dip by half a percentage point this year, moving from 28.1% to 27.6%,” Berry noted. “Its sales growth has also declined by 1%. This is the first time Tesco has

dropped behind grocery market growth since October 2009, demonstrating the success of the retailer up until now. One opportunity for it to get back on track is to build on the increasing number of trips to its stores which we have seen in recent months and get customers spending more.”

Elsewhere, Aldi continues to set the pace as the retailer enjoys the strongest level of growth, albeit slightly below its previous rate of 30%.

Meanwhile, grocery inflation stands at 5.2% for the 12 week period ending January 20, 2013, ahead of the 5.0% in the previous period and the highest since the 5.6% seen in May 2011.

MARKET SHARE - TOTAL GROCERY Includes all expenditure through main store tills and excludes petrol & instore concessions

Total Take Home Grocery - Ireland Consumer Spend 12 Weeks to 22 Jan 2012 %*

12 Weeks to 20 Jan 2013 %*

change %

100.0%

100.0%

0.6%

Total Multiples

87.4%

88.6%

2.0%

Tesco

28.1%

27.6%

-1.0%

Dunnes

23.4%

24.3%

4.6%

SuperValu

20.0%

19.8%

-0.5%

Superquinn

5.6%

5.3%

-4.5%

10.3%

11.6%

13.0%

Aldi

4.6%

5.9%

29.5%

Lidl

5.7%

5.7%

-0.1%

12.6%

11.4%

-9.2%

Total Grocers

Total Discounters

Other Outlets**

*= Percentage Share of Total Grocers **= Includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers and Cross Border Shops

Food Works for Entrepreneurs MINISTER for Agriculture, Food and the Marine, Simon Coveney TD recently met with the 11 Food Works entrepreneurs undertaking the final stage of the Food Works initiative, a comprehensive training and development programme from Bord Bia, Enterprise Ireland and Teagasc, aimed at finding and fostering global food entrepreneurs.

The Minister highlighted the importance of entrepreneurship, which he described as a “key ingredient of growth”. He warned the Food Works entrepreneurs, however, that “the volume of market and consumer knowledge, expertise in technology and logistics, together with the financial and commercial nous required

is huge. Food Works delivers to you the joint support of three agencies - Bord Bia, Teagasc and Enterprise Ireland – in a very concentrated way. The success of your businesses will ultimately be down to yourselves.“ The Minister also thanked the Institute of Advertising Practitioners, whose members provided

creative expertise on a pro bono basis to 11 Food Works participants.

Participating companies included McCann Dublin, Havas Worldwide, Ogilvy, Leo Burnett, Owens DDB, DDFH&B, Cawley Nea TBWA, Javelin, Irish International and Dark Horse and GK Consulting, who all provided time on a pro bono basis.

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Restrictive Car Parking Killing Town Centres: RGDATA

RGDATA is calling on the Government to save town centres from desertion by providing new national guidelines on car parking and smart travel. ‘Nightmare On Every Street – Town Centres, Car Parking and Smart Travel’, a new report by RGDATA, examines the challenges facing town centres due to restrictive parking regimes and offers practical and innovative solutions.

“Cash strapped local authorities are destroying the vitality of town centres in Ireland with extreme parking policies,” said RGDATA Director General, Tara Buckley. “High rates, fines and the threat of clamping are driving people out of town centres. This has created a nightmare on every street that requires urgent action.”

RGDATA is seeking new guidelines to end the parking policy inconsistencies of local authorities and help combat the pull of shoppers to out of town retail centres with free parking. Initiatives advised in the report include more graded parking fees and fines, more flexible payment mechanisms and innovative pricing structures, free parking days and set grace periods.

The report also proposes a levy on out-of-town free parking, to be imposed on the operator of the shopping centres and paid to the local authority. The introduction of standardised parking rights is called for, with clear rights of appeal for unfair parking sanctions.

Local authorities nationally have differing policies on the introduction and operation of town parking regimes and there is no consistency in their approach. RGDATA’s submission addresses this issue and provides detailed information on pricing, penalties and parking services in various towns around the country.

The report makes practical recommendations to ensure that businesses, town centres and local communities maintain their attractiveness to customers. The full report includes a nationwide survey of town centre parking regimes across a selection of 16 towns and cities; and a survey of town centre retailers to assess the impact of town centre parking regimes on their businesses. The results reveal that the town centre parking regimes are directly and negatively impacting on shops operating in urban areas and damaging the vitality and viability of towns.

“This report proves that this issue is directly causing business closures, job losses and the death of vibrant town centres in Ireland.

If the Government doesn’t take this report into account and take specific action, this scourge will continue to drain the lifeblood from towns and villages. It’s time to take action and end the nightmare,“ concluded Buckley.

Late Payment a ‘Live’ Issue A NEW EU Directive aimed at tackling the issue of late payment of invoices across the EU could make a massive difference to Irish businesses, particularly SMEs. The issue of late payment of unpaid invoices is one of a number of factors having a direct and negative impact on Irish SMEs and businesses across the country.

Figures from the European Payment Index 2012, have estimated that 2.8% of total turnover was lost in Ireland in 2012 due to late payment. The average delay in days in 2012 was 31 days for business to business transactions and 13 days for public authorities to business.

Latest statistics at European level highlight that late payment has continued to rise to an unprecedented level of €340 billion, more than double the European Union’s total 2012 budget of €147 billion. The most recent figures estimate that insolvencies

have led to the loss of 450,000 jobs, with 57% of businesses in Europe having experienced issues with liquidity due to late payment, an increase of 10% on the previous year.

In order to tackle the important issue of late payment across all of the EU Member States, the European Commission have developed legislation, Late Payment Directive 2011/7/EU, to support Irish and European businesses, whilst improving business sentiment. Sustaining jobs and promoting growth is a cornerstone for the European Union and in line with Ireland’s core strategy for its Presidency of the Council of the European Union of growth and job creation.

To raise awareness of the problem in Ireland and to encourage early implementation into national law before the deadline of March 16, 2013, the Commission hosted an information seminar in Dublin

recently, where key Irish stakeholders, SMEs and business leaders learnt of the current legal framework of the Directive, an understanding of its applications and benefits, as well as practical examples of how best to implement them to support their businesses.

The information campaign, which will see similar seminars across all Member States, is funded by the European Commission, and places emphasis on ensuring that European businesses, in particular SMEs, know their rights and how best to make use of them.

“Due to this measure, which is one tool that the European Commission has to support business activity, additional liquidity, amounting to €180 billion per year, is expected to be available

for businesses,” said Antti Peltomäki, Deputy DirectorGeneral of the Enterprise and Industry Directorate-General.

“For Ireland and the other member states, incorporating the Directive into their national legal systems will enhance growth and boost competitiveness. Late payment in commercial transactions has been a major obstacle to the free movement of goods and services in the Union, this Directive will help to remove this barrier.”

See http://ec.europa.eu/ enterprise/index_en.htm for more information.

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Food and Drinks Exports Break €9 Billion Barrier IRISH food and drink exports in 2012 surpassed €9 billion for the first time, according to new figures released by Bord Bia. This builds upon, and consolidates, the food industry’s exceptionally strong performance over the past three years, with exports currently valued at €2 billion, or 28%, ahead of 2009 levels.

The strongest performing categories were meat and livestock (€3 billion), seafood (€493m) and beverages (€1.26 billion).

“Passing the €9 billion export mark in 2012 is a great achievement by the industry and has been secured despite very challenging conditions,“ noted Minister for Agriculture, Food and the Marine Simon Coveney TD. “These exports consolidate the growth of the previous two years and demonstrate the importance of a sustainable and dynamic agri-food sector to Ireland’s economic recovery.“ Aidan Cotter, Chief Executive, Bord Bia, explained how this “robust export performance” had been achieved “despite falling global commodity prices, lower output in some sectors and the continued weakness in consumer spending in established markets.”

Bord Bia Chairman, Michael Carey added, “Irish food and drink was a major contributor to the economy’s strong export performance

in 2012 and I would like to commend the industry for its performance in what remains a challenging and competitive environment.”

Many of the major categories recorded increases, led by meat and livestock, which increased by €128m; seafood exports increased by 18%, or €75m, while beverage exports recorded growth of €37m.

The immediate prospects for Irish food and drink exports in 2013 remain positive, according to Bord Bia, with increased output in some key sectors, combined with more stable global commodity prices expected.

However, feed and other input cost developments in the livestock sector will again play a key role in determining farm level performance, following a difficult year for farming due to poor weather conditions and rising costs.

The results of the annual Bord Bia industry survey, completed in December 2012, also show continued confidence among food and drink manufacturers and a strong positive outlook for the year ahead. In total, 77% of exporters reported increased sales over the past 12 months, while 75% expect export sales to increase again in 2013.

Among Bord Bia’s key initiatives this year will be

Aidan Cotter, Chief Executive, Bord Bia, is pictured with the Minister of Agriculture, Food and the Marine, Simon Coveney TD, at the launch of Bord Bia’s export report.

the continued development, global promotion and marketing of its sustainability development programme, Origin Green. Since launching in June 2012, some 164 companies, accounting for almost 60% of Irish food and drink exports, have signed up to the programme. These companies are currently working with Bord Bia to develop, and commit to, sustainability plans setting out clear targets in key areas such as emissions, energy, waste, water, biodiversity and corporate social responsibility activities. Individual sustainability commitments submitted by major players

within the Irish food industry include a 20% reduction in energy use by 2015; the implementation of rainwater harvesting by 2014 and a 30% reduction in emissions by 2020.

In the year ahead, Bord Bia also plans to promote Origin Green, and Ireland’s green reputation, by hosting a Global Sustainability Conference at the Dublin Convention Centre in September; participating in excess of 25 overseas trade shows; and delivering a comprehensive sustainability communications campaign to key stakeholders across Ireland.

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Irish Van of the Year Named THE Ford Transit Custom has been voted Continental Irish Van of the Year by the Irish Motoring Writers Association, having already claimed the International Van of the Year title. The Transit Custom, with 69 points, finished ahead of the Citroen Berlingo Airstream on 49 points and the Peugeot Partner Euro 5 with 44 points. Members of the Irish Motoring Writers’

Association van jury cast their votes on the basis of value-for-money, reliability, versatility and lasting residual value, among other attributes.

“The competition in the van segment gets tougher all the time, so each new Transit has to raise the bar to maintain its position as the country’s most popular commercial vehicle,” said Ciaran McMahon,

Pictured are Gerry Murphy, Chairman of the Irish Motoring Writers Association; model Daniella Moyles; Michael Moroney, Chairman of the IMWA Van of the Year jury; Ciaran McMahon, Marketing Director, Ford Ireland; and Paddy Murphy, Continental Tyres Ireland, sponsor.

Marketing Director of Ford Ireland. “It’s a huge boost to the new Transit Custom model that the Irish Motoring Writers believe it has done just that.”

Targeting an expanded share of the one-tonne segment, the Transit Custom combines new style and pioneering technologies with the van’s traditional hallmarks of toughness, dependability and low cost of ownership. This marks the third time that a Transit model has taken the overall Irish Van of the Year award.

Presenting the award, Paddy Murphy of award sponsors Continental Tyres Ireland, commented: “We witness great progress being made in commercial vehicles each year, not least in terms of fuel economy and driver technology, and Ford’s Transit Custom is a case in point. These and other strengths make it a worthy bearer of the title Continental Irish Van of the Year 2013.”

Slight Increase in Sales Figures for Q4 2012 LATEST figures for retail sales show a slight increase during the fourth and final quarter of 2012, according to Retail Excellence Ireland’s (REI) Irish Retail Industry Performance Review Q4 2012.

The best performing retail industry sectors during Q4 included Hot Beverages (+4.23%) and Home & Giftware (+2.18%).

Both sectors increasing sales levels in Q4 2012 compared with Q4 2011.

The increase in the Hot Beverage sector provides indication that footfall held up well over the period.

Overall, year-on-year

sales levels increased by an average of 0.21% during the fourth quarter of 2012.

November proved to be the most challenging month of the quarter, with sales falling by -0.17% year-on-year. Pre-budget speculation in October, which caused a decrease in consumer sentiment, is the main reason for this.

The month of December saw an improvement, with Irish retailers reporting an increase of 0.31%.

“The slight increase in retail sales during Q4 2012 is very welcome,” noted REI Chief Executive Officer, David Fitzsimons.

“However, the sector still remains fragile.”

Retail Excellence Ireland Chief Executive Officer, David Fitzsimons.

Floriculture a Growth Area

SUPERMARKETS are expected to increasingly become the preferred outlet for sales of cut flowers and potted plants, according to new research from Rabobank’s Food & Agri Research and Advisory Department.

“The increasing segmentation of the market will offer new opportunities to suppliers, and the most potential for additional sales will be through the supermarket channel,” said Cindy van Rijswick, Rabobank analyst. “The example of floriculture expansion in the UK has shown that this is possible, even though the category might be complicated.”

According to Rabobank, it is important that suppliers tailor their services and products according to the specific role that their customer’s floriculture category fulfils. Indeed, to tap into the potential of the supermarket channel, growers, retailers and a facilitating player in-between will need to work closely together. If current intermediate suppliers do not tap into this potential, retailers will either invest in the opportunity themselves — integrating the role of facilitator into their business — or the floriculture sector will lose out on this market.

“A well-organised supply chain and proper category management are key factors contributing to the success of the floriculture category in supermarkets,” said van Rijswick.

“But as there are different possible roles within the floriculture category, there are also different strategies suppliers could follow to tap into the supermarket potential. One point of similarity in all of the possible strategies is the role of the facilitator.

It is up to the suppliers to take up the challenge of becoming a true facilitator that helps supermarkets tap into the floriculture potential.”

We’re looking to grow The Maxol Group seeks to acquire freehold service stations.

Maxol, recently voted Ireland's most reputable oil company, is seeking to grow its company owned service station network in Ireland.

If you are considering selling your business, we would like to hear from you. As a family business ourselves, we appreciate the

and in a timely manner.

Please contact: Property Acquisitions The Maxol Group 3 Custom House Plaza, IFSC, Dublin 1 Tel: (+353) 01-6076869 Email: acquisitions@maxol.ie Web: www.maxol.ie/acquisitions facebook.com/Maxol @TheMaxolGroup

www.maxol.ie

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Industry News Topaz Investment Secures 82 Jobs TOPAZ has secured the future of 82 jobs by investing in five petrol stations which were set to close.

Topaz is investing €1.35m in five petrol stations in counties Kildare, Westmeath and Wicklow, including three stations which were formerly part of the Brinkhall group (Athy and Newbridge in Kildare and Ashford in Wicklow), and two sites in Mullingar and Athlone, Co. Westmeath. “As a fully Irish owned and managed company we know the importance of job generation and protection, especially in the current environment,” noted Topaz Marketing and Corporate Services Director, Paul Candon. “We have ambitious plans for all five sites and we are looking forward to providing an excellent service to the local communities where they are based.” Paul Candon is pictured (right) outside the Mullingar store with manager Alan Fay.

SuperValu Launches Shopping App SUPERVALU has launched the first grocery shopping app in Ireland. The SuperValu app, which is available for both Android and iPhone users, allows customers to do their shopping from the palm of their hand and avail of the same promotional offers, fresh quality food and delivery service that they would expect from their local store. The app contains a range of innovative features, such as the ability to scan the barcode of a product with their mobile to purchase it from the comfort of their home or check product ingredients and nutritional information.

As all SuperValu stores are owned and operated by local entrepreneurs, customers will be able to avail of tailored offers and local produce exclusive to their neighbourhood supermarket. SuperValu’s Real Rewards loyalty card can also be used in conjunction with any purchase, replicating the in-store experience.

SuperValu has also launched a separate recipe app that delivers hundreds of recipes from the SuperValu.ie site to help customers make the most of their weekly shop with a meal planner. Holly Carpenter is pictured at the launch of the SuperValu app.

Tesco Metro Opens in Terenure A NEW Tesco Metro store in Terenure, Dublin, was officially opened on January 10, creating 34 jobs in the local area.

Assisting Tesco Terenure Metro Store Manager Cathal Conway to cut the ribbon were members of the Templeogue Synge Street Ladies GAA Team, who received a new set of jerseys in celebration of the store opening. Speaking at the event, Store Manager Cathal Conway said: “We believe that the new store store will be an important addition to the community and we look forward to getting to know our new customers, and to building a long and positive relationship with the community in Terenure.” Tesco Ireland CEO Tony Keohane is pictured with staff at the new Terenure Tesco Metro store.

New Gala Store Opens in Mayo THE Tuffy family have opened their second Gala store on Main Street, Bonniconlon, Co Mayo.

The store was officially launched by John and Brian Tuffy, who have strong links to the local area through the Tuffy family wholesale business and the award-winning Gala store in Ballina. The Tuffy’s latest business venture has created 10 jobs for the local community. The new store incorporates the Bonniconlon post office, truly making it a hub of the community. Shoppers can look forward to having a great selection of wines in store, as well as being able to play the Lotto. Congratulating the Tuffy family, Gala CEO, Gary Desmond said, “Tuffy’s Gala in Ballina has achieved the Gold standard in the Gala B.E.S.T Awards for the last two years running, so I am certain that Tuffy’s Gala Bonniconlon will be an exemplary store, where retail standards and customer service ethos are second-to-none.”

Pictured at the official opening are Brian Tuffy, store owner with Mayo senior footballer Andy Moran.

Information Notice for Tobacco Retailers

Introduction of Pictorial Health Warnings on Tobacco Packaging What?

When?

The Government has decided that the current text health warning on the back of tobacco packaging will be replaced by a pictorial health warning.

From the 1st February 2013, all tobacco products entering the Irish market must carry pictorial health warnings on the back of the pack.

However the Government has allowed a one year sell through period for existing stock which means all tobacco products already in the Irish market prior to 1st February 2013 can continue to be sold or offered for sale until 1st February 2014.

What do tobacco retailers need to do? s 4OBACCO COMPANIES ARE COMMITTED TO managing the change as smoothly as possible and the companies will be in contact with customers in the coming months to provide specific details of how they are managing the transition to pictorial health warnings for their products.

Therefore until the 1st February 2014, retailers can sell tobacco products carrying both text and pictorial health warnings to adult smokers.

s 4OBACCO RETAILERS ARE ADVISED TO MANAGE their stock rotation to ensure the sell through of products with text warnings first. Your tobacco representatives will be on hand to assist you.

Caitheamh tabac is cúis le críonadh craicinn Smoking causes ageing of the skin

www.itmac.ie

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Industry News Lucozade Sport’s Rugby Sponsorship LUCOZADE Sport has been announced as the Official Sports Drinks to the IRFU. Details of the new partnership were announced at the Science Gallery in Trinity College with Irish players Brian O’Driscoll, Jonathan Sexton and Rob Kearney, pictured with Jim Geraghty, Lucozade Sport Marketing Manager. Under the new agreement, Lucozade Sport will provide financial and product support to the IRFU, as well as access to nutritional and sports science advice for management and players. The IRFU are also being provided with Lucozade Sport’s new range, Lucozade Sport Elite, for the first time, for the RBS 6 Nations Championship, which will be of great benefit to Declan Kidney and the Ireland team in their preparations for the tournament.

Tesco Sponsors Ladies Football THE Ladies Gaelic Football Association has unveiled Tesco Ireland as its new title sponsor of the National Football leagues at the launch of the new season, high profile, inter-county competition. Tesco and the LGFA have agreed a three year deal which will see the National Football Leagues coming under the Tesco Homegrown brand. Tesco already have a strong association with Ladies Football as sponsors of the All Ireland Club Championships, the All Ireland Club Sevens, All Ireland Post Primary Schools Competitions and the Club Person of the Year Award. Pictured at the announcement are: Pat Quill, President LGFA; Lynn Moynihan, Local Marketing & Sponsorships Manager, Tesco Ireland; and captains from the Division 1 counties Meath, Monaghan, Tyrone, Dublin, Donegal, Cork, Laois and Mayo.

Donegal Creameries Extends GAA Sponsorship

€300,000 Supply Chain Portal for BWG BWG Foods has partnered with award-winning supply chain software company, Atlas, in a €300,000 investment to automate its entire purchase to pay process, handling in excess of 4.8m transactions annually. The new system, BWG Tradelink powered

by Atlas Universal, has been configured to BWG’s specific business requirements and fully integrated across its purchasing, warehouse and finance functions. The web-based solution is enabling the company to carry out electronic data interchange, data synchronisation, supplier collaboration, invoice matching and new supply chain reporting. As a result, BWG Foods and its suppliers are now using the electronic trading system designed by Atlas to achieve operational efficiencies and productivity improvements for both suppliers and stores. It has also delivered improved efficiency in warehouse management systems, space planning systems and electronic point of sale systems which all now benefit from much more accurate, up to date and reliable data. Pictured are Willie O’Byrne, Managing Director of BWG Foods, and Allan Gray, Managing Director, Atlas.

DONEGAL Creameries, part of Connacht Gold, has announced the renewal of their Donegal GAA sponsorship. The deal will see Donegal Creameries continue the sponsorship of the All-Ireland champions in a partnership that first began in 2010. “We are delighted to be in a position to continue our sponsorship of Donegal GAA in the coming months, which brought such glory and pride to the county in 2012… We are a big employer in the area and delighted to be in a position to support healthy vibrant activities such as Gaelic Games, as well as produce high quality dairy products,” said Niall O’Donnell, Sales Manager for Donegal Creameries, pictured (centre) with Donegal players Karl Lacey (left) and Rory Kavanagh.

Kilbeggan Set for US Relaunch WALTON Isaacson, one of the top US creative agencies, flew into Ireland recently to film a series of adverts for the Kilbeggan Irish Whiskey brand. The main shoot took place in Kilbeggan Village, around the grounds of the 256 year old Kilbeggan Distillery. The shoot was set up to produce a number of viral adverts to support the re-brand launch of the flagship Kilbeggan Irish Whiskey brand.

The viral adverts were shot specifically for the US market and will be rolled out to support the re-brand, which is due to take place in Q2 2013.

IT’S A ONE VAN SHOW. NEW FORD TRANSIT CUSTOM

You can get the show on the road from €53 ex. VAT per week*. *

Transit Custom – International Van of The Year 2013.

ford.ie/transitcustom Ford Transit Custom Finance Example: Term 60 Months. Retail Price €18,252. Deposit/Part Exchange €5,667. Finance Advance €12,585, 60 monthly payments of €229.66. Total cost of credit €1,258.09. *Lending criteria and terms and conditions apply. Finance is generally provided by way of a fixed rate Business Lease agreement. Finance example is based on a fixed rate APR of 3.9% and includes a once off documentation fee of €63.49. To qualify for this Finance Offer; a minimum deposit of 20% and a maximum term of 61 months applies. Rate quoted is correct as at 5th February 2013 and is subject to change. This offer is available on all Ford Transit Custom models registered from 1st February to 31st March 2013. The amounts shown above are exclusive of Value Added Tax and all payments will be subject to Value Added Tax at the appropriate rate. The weekly payment shown is indicative only, all amounts are payable monthly. The credit provider is Ford Credit which is a registered trading name of Bank of Ireland Leasing Ltd. Excludes delivery and related charges. Model is shown for illustrative purposes only.

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Consumer Insight Over 170 small food and drink producers gathered recently for Bord Bia’s third annual Small Business Open Day, which provided interesting insights into consumer behaviour.

Celebrity chef and co-host of RTE’s Masterchef Dylan McGrath is pictured with Louise O’Donohue, O’Donohue’s Bakery (left) and Celine Hayes English, Couverture Desserts (right) at the Bord Bia 2013 Small Business Open Day.

The Taste of Bord Bia chose the phrase ‘Resilience and Progress’ as the title for its 2013 Small Business Open Day. The Open Day took place against the backdrop of the horse meat/beef burger scandal, an issue that goes right to the heart of concerns about traceability and quality of ingredients that have become increasingly important to consumers.

While there is no doubt that this scandal has impacted negatively on the reputation of the food sector in Ireland, the damage seems relatively isolated.

“Although this is a serious issue, the majority of buyers at home and abroad are not overly concerned, said Aidan Cotter, Chief Executive of Bord Bia, in his opening address. “Ireland has an excellent reputation for quality food and ingredients, this is not a food safety issue and it was discovered by our own regulatory authorities.

Although it is extremely unfortunate, it very clearly demonstrates our commitment to producing the best possible food products on this island.”

Success?

Irish & UK Grocery Retail Landscape

David Berry, Commercial Director, Kantar Worldpanel, presented some fascinating insights into the grocery retail market. Despite highs and lows, Global GDP has been growing steadily since 1980. The global population is set to reach 9 billion by 2050. This means there is a massive and growing market available to Irish food entrepreneurs.

Domestically, despite inflation of 5% last year, average Irish spend per household increased by just 0.3%. Irish consumers are using a combination of buying less, choosing discount stores for their purchases and substituting cheaper brands for preferred brands to produce these savings. Own brand goods have experienced increases in sales for every operator providing them. In short, Irish consumers can still be described as cash-strapped and cautious.

The UK market presents the best opportunity for Irish companies to

Cathy Cross, Consumer Insight Director, Kantar Worldpanel, pictured addressing delegates.

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Consumer Insight drive sales; the domestic grocery market is worth €9 billion while the UK market is worth £100 billion, with sales in the UK FMCG market recording a 3% increase in 2012.

Indeed, according to Berry, every category in grocery in the UK market recorded increases in sales last year, with fresh food showing the strongest growth. Despite the fact that UK and Irish consumers will remain cautious in the short term, the UK market does offer some cause for optimism.

Cathy Cross, Consumer Insight Director with Kantar, explored the opportunities in the Irish market in more detail. She highlighted that despite the flat sales in the market last year, specific areas are recording sales growth. For example, condiments and table sauce recorded an increase in sales of over 10% last year. The key reason for the increase is the success of Knorr Stock Pots, she explained.

Critically, the new variant has proven popular itself, as well as driving sales of traditional stock cubes, which has delivered tremendous overall growth in a flat market.

According to her presentation, the key is to offer something different from other brands and from private label/own brand goods. Genuinely innovative products have recorded strong sales in the Irish market. 67% of Irish consumers like trying new products, despite being cash-strapped and cautious.

The presentation highlighted other key areas in the Irish market that have seen sales growth arising from product innovation. Coffee, through brands such as Millicano and Azera, has recorded year on year growth in both ground and instant. Healthy breakfast biscuits, through Belvita and McVitie’s, recorded 9% sales growth in 2012. Beans, through Heinz Fridge Pack and Snap Pots, showed a year on year sales increase of 5%.

This goes to prove that certain brands have identified consumer needs or desires and provided innovative offerings with a good value proposition, and consequently have delivered strong growth, even within the apparently flat domestic market.

that Bord Bia has identified among consumers.

Irish consumers have different attitudes and activities from those of the Celtic Tiger era. Key to exploiting the latest trends is being able to anticipate where the market is going and technology is increasingly playing a key role in delivering new products and driving sales in existing markets, as well as creating new markets.

The consumer lifestyle trends identified by Bord Bia fall into a number of key areas, all of which offer strong growth potential. Globally, healthy snacks are forecast to show a sales increase of up to 20% by 2014, while satiety products (slow release energy bars, etc) are a very new market, with increases in sales of 40% from 2010 to 2011.

Sustainable production methods have long been important in food production, but they are now more important to consumers than they have ever been. Implementing best practice, fair trade, sustainable and ecologically sound production processes is something that will deliver increased sales if clearly communicated to customers.

Technology is allowing brands to engage customers in a much more intimate way. Brands such as Walkers and Nestlé regularly engage customers in flavour creation.

Customers are living more of their lives online and it presents an

Understanding the Consumer

Helen King, Head of Consumer Insight & Innovation with Bord Bia, provided attendants with an extremely informative presentation, packed with information on the latest trends

Helen King, Head of Consumer Insight & Innovation with Bord Bia, addresses the Open Day.

Evelyn Moynihan, Head of Own Brand at Musgrave Retail Partners Ireland, is pictured addressing the Small Business Open Day.

entirely new way not just to drive sales, but to integrate your brand into your customer’s life, by being more entertaining and engaging on every level.

SuperValu & Irish Suppliers

Evelyn Moynihan, Head of Own Brand at Musgrave Retail Partners Ireland, sounded the most positive note of the day for SMEs operating in food sector. In line with the sector in general, SuperValu has seen its own brand experience strong sales growth, especially since the 2012 relaunch.

SuperValu is actively looking to expand the number of quality Irish and local suppliers as it further develops its private label offering. They are looking for producers with innovative products that distinguish themselves from the competition and offer a good value proposition.

Anyone interested in working with SuperValu can also take advantage of the SuplerValu Supplier Development Programme, which is designed to assist and support small or emerging food processing companies.

The main thrust of Evelyn’s presentation and indeed of the whole Bord Bia Small Business Open Day is that we can forget the ‘R’ word: the market is what the market is and the facts remain that emerging trends and technologies present plenty of opportunities to innovative products and brands operating in the Irish food sector.

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Retail News Interview Brian Donaldson, Chief Operating Officer of The Maxol Group, talks us through the group’s ambitious growth plans and the reasons behind their new brand identity.

Maxol Invests in the Future Pictured at the launch of Maxol’s new ‘Brio’ brand identity are (l-r): Brian Donaldson, Chief Operating Officer of The Maxol Group, and Tom Noonan, Chief Executive of The Maxol Group.

Recession? Seen it all before.

That seems to be the message from Maxol, the family-owned fuel and forecourt business, who have just unveiled hugely ambitious plans, including the launch of a new forecourt brand identity, a five year business development plan and a €50m investment in the upgrading and expansion of their all-Ireland service station network.

“We’re a family owned business, with 93 years trading. We’ve changed our brand a number of times over the years,” explains Brian Donaldson, Chief Operating Officer of The Maxol Group, who reveals that the Maxol brand’s last major change was back at the tail end of the 1980s.

“When we were looking at our forecourt identity about two years ago, we felt there was a need to freshen our brand, to make it more vibrant,” Brian notes. To that end, Maxol decided to carry out a full brand audit to see how consumers viewed the brand. “It became clear that we were seen as a trusted and long-established brand,” Brian notes. “In the eyes of today’s consumers, we were seen as extremely

reliable and trusted but maybe we weren’t that exciting.”

Re-Branding Process

Maxol appointed brand consultants Neworld Associates to spearhead the re-branding process. The project involved an in-depth brand audit, qualitative and quantitative research, a consumer insights shopper programme and a series of workshops and full staff inductions.

“It was a case of bringing together feedback from our forecourt and convenience store customers and our internal staff, along with our shareholders in the McMullen family,” Brian explains. The result is a new forecourt brand identity, including a new logo, centred on a colourful brand mark, which they call the ‘Brio’, which was introduced to its first store, in Adamstown, Lucan, Co. Dublin, in July 2012 and has since been rolled out to over 50 stores, with the remaining 175 stations expected to be complete by mid-2014.

One of the big changes will be the evolution of the Maxol brand, according to the Chief Operating Officer, to make

it more appealing to both genders. He admits that Maxol’s customer base has traditionally been male-orientated, but that the company is working to “make our offering much more extensive and much more appealing to the female consumer and to a younger audience as well.” The new Brio image, he feels, is “much more vibrant and can resonate not only with existing customers but hopefully with new customers too”.

The Price Factor

We put it to him that surely the biggest factor for consumers choosing a forecourt is the price of the fuel?

“Price is certainly important in the eyes of the consumer, but price alone won’t win you consumer loyalty,” Brian explains. “The market itself is very competitive and we know that you need to have a competitive price on your gantry but that by itself won’t build loyalty: people want to have a forecourt where they can access easily; a forecourt which they can fill at a pump which performs to their satisfaction; they want a clean and fresh environment; but also, they want their business to be appreciated.

www.retailnews.ie|January/February 2013|Retail News|19

Retail News Interview Our retailers do appreciate each transaction and each purchase consumers make on their forecourts.”

Customer service, he reveals, is at the heart of the Maxol ethos: “When you have a programme of re-imagining, reinvestment and expansion, that in itself creates a very positive environment and sends a very positive message. I think consumers will go where they can step away from the traditional type of service and get something special; better treatment.

Our retailers and our staff can see they are with a brand that is reinvesting for the future and that in itself must give them confidence and that comes across in how they deal with customers.

Customer service is a big area in terms of where people will spend their money.”

Changing Culture

The new forecourt identity is only one aspect of Maxol’s investment, however, as the COO is quick to stress: “Along with our new identity, we are trying to change our culture, how we communicate: how we engage not only with the motorist and our convenience shoppers but also how we engage with all of our retailers and our staff.”

“As technology has evolved, sometimes we become that little bit more remote,” Brian opines. He cites the example of www.emaxol.com, their online ordering portal, where customers can place orders for fuel, for POS material, maintenance to machinery etc, which, while effective, has reduced the amount of personal interaction between people. “So this is about trying to get back to the coal-face, back onto the forecourt and back into our convenience stores, from our Chief Executive right down to people involved in distribution, IT and maintenance,” he explains. “It is a complete rethink in terms of how the Maxol brand will be presented in Ireland, and how we as a company, as employees and as retailers engage with the consumer.”

Maxol is also investing heavily in social media. Recent social media activity included a specially commissioned ‘Maxol Non Stop Pit Stop’ Facebook game, which was promoted online, and across all Maxol service stations. This was followed by the preChristmas launch of ‘Maxol Golden Pump’, a YouTube video that featured staff at the Maxol service station in Adamstown, Dublin, celebrating the new brand identity by gifting free fuel and other treats to customers.

“We are investing heavily in social media so we can improve the opportunities and the vehicles for how people communicate with us and how we communicate with them,” explains Brian.

At The Heart Of It

The company’s new positioning line, ‘At The Heart of It’ is significant, according to Brian. “In many ways, the Maxol service station is really the focal point of each of the local communities in which we operate. What we are trying to do is work with our retailers, be they licensees or independent dealers, to help them to get even closer to their communities,” he explains. To this end, Maxol is encouraging each of its service stations around the country to raise funds for a local cause.

“It might be a case of dealing with eyesores in certain towns or villages, of landscaping or doing a general tidy-up, or it could be a case of helping local groups to raise funds for worthy causes,” he explains. “Our business model is based on working with families who run businesses in their local communities and it is about engaging with them and with the community.”

So what changes will Maxol retailers see in their dealings with head office or with their area manager?

“I think what they’re going to see is a real desire to get out there and work with them to engage more closely with each of their customer bases,” he stresses. “It’s about giving them the template and the support to make that a success. It’s also about rewarding our retailers and recognising the important part they play in the development of the Maxol brand. Business is about dealing with people; and that’s our model: we don’t directly manage any of our companyowned service stations – they are all independently operated by licensees, who are responsible for recruiting and developing staff and that’s where we want to have closer engagement, to provide better tools to help them train, but also to reward and recognise good performance by their staff.”

Expanding Store Network

The company are also seeking to expand their store network in the midst of the worst recession in a generation. Are they mad?

“No,” he laughs, “although we certainly have been asked that.

When you’re looking at the economic climate, it’s certainly a difficult

The new Maxol logo, centred on a colourful brand mark, called the ‘Brio’.

trading environment, no matter what sector you’re in, and fuel retailing is no different. But to be honest, we see opportunities, particularly when you compare property prices today to the boom years of the Celtic Tiger. We’re a very long-established family-owned and family-run business. We’ve been through recessions before and come out the other side.”

Maxol, Brian reveals, are “playing the long game... We want to be here for another 93, 94, 95 years and beyond, so that’s the way we’re going into the market and hopefully we will find new opportunities to expand our companyowned network”.

Indeed, Brian has a message for any forecourt retailer thinking of changing careers: “If any independent retailer who owns a modern forecourt with convenience store is looking at retiring, changing their business interests or they’ve just had enough of this market, we would like to hear from them. Being a family business, we will be completely open and honest in how we deal with them and we will treat any business with the utmost confidentiality.”

Looking ahead to the rest of 2013, would it be fair to say that Maxol are cautiously optimistic?

“Yes, I think we have to be,” the Chief Operating Officer agrees.

“We don’t see the economy turning around overnight but we do believe that there are signs of the economy having bottomed out. When you’re looking at the Republic of Ireland and comparing GDP growth forecasts to the rest of Europe, Ireland seems to be projecting better growth than some of the other EU states. So in 12 months time, we would like to see our new Brio image rolled out more extensively across our network: we hope to have over 120 sites re-imaged towards the end of the year. We would also like to have added a good number of sites to our companyowned network and to welcome new independent dealers to the Maxol branded supply contract.”

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Paper Products

Paper

Money

The paper products market is ultra-competitive, with a wealth of big brands competing for market share.

IRELAND’S paper products market is one of the most competitive in the entire grocery spectrum, with big brands and private labels fighting for share. While it is a mature category, NPD can and does create excitement and demand amongst consumers.

Future trends in the paper products sector are expected to fall along ecological lines, as consumers become more environmentallyminded and choose more recycled or reusable products, according to the latest report into the sector by Euromonitor. Branded and private label manufacturers are also expected to focus on developing more absorbent products and greater segmentation in a bid to add value to products in a saturated category. Volume growth is unlikely to vary significantly from underlying population growth, given high per capita consumption and mature markets. One area which has shown growth is that of paper products, tissues and wipes geared towards babies, given our expanding population.

The leading five international branded goods manufacturers control 60% of tissue and hygiene in Ireland, according to Euromonitor. This figure has declined only slightly in recent years, despite a very strong showing from private label. The strength of international brands has allowed them to persevere against the

combined threats of the recession and the rise of private label.

Promotions and volume discounting by all the big players have helped to keep their brands front and centre with consumers.

Velvet will continue to support its campaign for trees in 2013: a high impact television campaign will run throughout the year and will be complemented with investment through shopper marketing activity.

SCA Ireland

SCA is a global hygiene and forest company that develops and produces personal care products, tissue

Cushelle is made with an extra ‘whooosh’ of warm air, which plumps up the tissue helping to make it ‘Irresistibly Cushiony Soft’.

and forest products, with sales being conducted in some hundred countries.

SCA Ireland distributes and markets some well-known brands, including Cushelle and Velvet toilet tissue, Plenty household towel, Velvet and Tempo facial tissue, Bodyform towels and liners and Tena incontinence products. In the most recent audit, SCA Ireland is the number one manufacturer of Total Paper products (Source: Kantar Worldpanel, MAT Value Share Toilet Tissue, Household Towel and Facial Tissue over 52 weeks, week ending December 23, 2012).

Cushelle and Velvet toilet tissue and Plenty household towel will continue in 2013 to drive strong brand awareness and rate of sale through investing in television advertising and shopper marketing campaigns.

Plenty household towel claims

www.sca.com

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Paper Products

The focus for the Plenty brand in 2013 is to continue to focus on category innovation and strong marketing investment through TV advertising and shopper marketing activity.

leadership in the category 19.7% value share (Source: Kantar Worldpanel, MAT Value Share Toilet Tissue, Household Towel and Facial Tissue over 52 weeks, week ending December 23, 2012). The focus for the Plenty brand in 2013 is to continue to focus on category innovation and strong marketing investment through TV advertising and shopper marketing activity. One key product initiative in 2013 is a fantastic new line extension to the range, with Plenty Super Strong, which delivers the cleaning power of a cloth in a paper towel.

Cushelle and Velvet toilet tissue continue to be part of the strongest brands within the SCA portfolio.

Cushelle claims a 9.9% value share of the toilet tissue category (Source: Kantar Worldpanel, MAT Value Share Toilet Tissue, Household Towel and Facial Tissue over 52 weeks, week ending December 23, 2012). In 2013, the brand will continue to be supported with strong TV advertising, shopper marketing campaigns at store level and digital marketing through Facebook and Pigsback.com. Cushelle is made with an extra ‘whooosh’ of warm air, which plumps up the tissue helping to make it ‘Irresistibly Cushiony Soft’.

Velvet toilet tissue currently claims 6.7% value share (Source: Kantar Worldpanel, MAT Value Share Toilet Tissue, Household Towel and Facial Tissue over 52 weeks, week ending December 23, 2012). Velvet will continue to support

its campaign for trees in 2013, which has already seen four million extra trees replanted through the ‘three trees promise’ which states that for every tree used in the manufacture of Velvet, three more will be replaced. A high impact television campaign will run throughout the year and will be complemented with investment through shopper marketing activity.

KimberlyClark

do not consider how they use their toilet tissue; failing to notice their own

Andrex is one of the most loved brands and has been a constant

February sees in homes for over 75 years.

Kimberly-Clark habits in a process which is often an launching an Andrex campaign with automatic routine and arguably innate. a difference. As a leading toilet tissue In store, the brand will be engaging brand, Andrex is embarking on a consumers through a repackaging of campaign to get people thinking about its Andrex Classic White toilet tissue, their bathroom habits and is dividing bringing the variant to the forefront of them into two camps, ‘Scrunchers’ or the campaign through a striking colour ‘Folders’. scheme designed to interrupt shoppers Andrex is one of the most loved in the tissue aisle and make them stop, brands and has been a constant in think and question their bathroom homes for over 75 years. As such, the habits. By promoting a campaign brand is well placed to comment on which creates buzz, excitement and toilet habits and through the brand’s engagement, Andrex is adding value extensive consumer research, it back into the category and encouraging became apparent that most consumers market growth.

The ‘Scrunch or Fold’ messaging will be prominently displayed on the front of Classic White variant packs and the by-line, ‘What do you do?’ will encourage audience participation through a ‘vote now’ mechanic which will drive consumers to Andrex website, www.andrex.co.uk to vote.

PR will be creating sustained buzz within the media, including print, online and on-air, while also playing an active role in encouraging chatter through social channels including the Andrex Puppy’s Facebook page and the new Twitter handle @ScrunchOrFold that will encourage the Twitterati to get involved in the debate.

February sees Kimberly-Clark launching “This is the first time Andrex has an Andrex campaign with a difference: created a campaign based purely on dividing people into two camps, audience behaviour and engagement,” ‘Scrunchers’ or ‘Folders’.

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Paper Products notes Sophie Woodford, Andrex Marketing Manager. “Historically, we have centred our campaigns on product launches or our much loved and recognisable brand icon, the Puppy.

“This is a really exciting campaign, which highlights a topic which no other brand has broached and as market leaders, we felt it was our place to create buzz, excitement and engagement around the category.

Conversations with our customers have generated healthy, playful debate and showed that we are a nation divided by how we use our Andrex. That’s why, for the first time ever, we will be encouraging people to consider how they use their loo roll.”

Regina

The Regina Tissue range, from Intertissue, continues to grow year on year and is fast becoming a favourite amongst Irish households. The product range sits at the most premium end

Regina Chamomile will be re-launched in April 2013 with a new scented core to freshen up the bathroom, along with the addition of an Aloe Vera balm on the sheets.

extension of Softis into a 4 and 12 roll variant, in addition to the hugely successful 9 roll pack, ensuring consumers wishing to buy small, medium and large packs are not disappointed when it comes to choosing a super premium toilet tissue.

Softis will continue to offer great promotional support in stores for 2013.

This year will also see the re-launch of Regina’s first toilet tissue,

Regina Softis will feature heavily on television throughout January and February.

of the market and offers the consumer unbeatable quality in both toilet tissue and kitchen towel.

In 2012, Regina Softis toilet tissue made its debut on Irish television and 2013 will be no different as the ATL support of Regina Softis continues: the brand will feature heavily on television throughout January In the kitchen towel category, Regina offers super and February. This year premium quality with Regina XXL, which will enjoy extra fill will also see the range promotional packs in-store.

which entered the Irish market in 2007. Regina Chamomile will be re-launched in April 2013 with a new scented core to freshen up the bathroom, along with the addition of an Aloe Vera balm on the sheets.

The re-launch will be supported by media advertising, along with great in-store offers to the consumer to encourage purchase.

In the kitchen towel category, Regina offers super premium quality, with both Regina Blitz and Regina XXL. This year, these two products will be featured in a media campaign in Q1, along with price and extra fill promotional packs in-store. Now with over 21% market share in branded kitchen towels (Source: Kantar) in Ireland, Regina is clearly one of the most popular kitchen towel brands in the Irish market.

Nicky

2012 has seen another great year for Sofidel’s Nicky brand. Since its launch in Ireland in 2004, Nicky has

This year, Nicky will launch a new Household Towel in a 2 and 8 roll format, which will give the consumer great value for money in the standard kitchen towel sector.

achieved double digit growth year-onyear. 2012 saw a similar pattern as the Nicky brand achieved 15% growth in the toilet tissue category. This has been helped by the introduction of new pack sizes to the Soft Touch label, now available in 4, 9, 16 and 24 roll, and the continued success of the extra fill packs of the premium quality Nicky Elite Toilet Tissue. 2013 will see the launch of Nicky Elite Aloe Vera to the super premium sector, which will give the consumer a choice to trade up into the premium sector at a reasonable price level. The new Aloe Vera pack

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Paper Products will be supported with on-shelf promotions, allowing retailers to benefit from extra sales in the coming year.

In the kitchen towel category, Nicky continues to offer both standard and premium products to the consumer for all those day-to-day jobs. This year, Nicky will launch a new Household Towel in a 2 and 8 roll format, which will give the consumer great value for money in the standard kitchen towel sector. In addition to this, the hugely successful ‘Nicky Lemons’, a

2013 will see the launch of Nicky Elite Aloe Vera to the super premium sector, which will give the consumer a choice to trade up into the premium sector at a reasonable price level.

decorated kitchen towel with a unique lemon scented core, will be launched in a 4-roll variant. At 100 sheets per roll, Nicky Lemons premium kitchen towel is longer lasting and great for jobs around the kitchen. Both 2 & 4 roll variants will be supported through 2013 with on-shelf promotions.

Homestead

The Homestead paper range continues to be one of the strongest categories within the Homestead portfolio.

Although 2012 was an extremely competitive year in this category, sales of Homestead Tissue were extremely positive.

Product like the Homestead Comfort 18 Roll PP €4.99 delivered great quality at a very competitive The Homestead paper range continues to be one of the price to the strongest categories within the Homestead portfolio, with consumer products like Homestead Splash Kitchen Towels. and it was many of which will be price marked promotions like this that to ensure day to day value for the ensured consumer support for consumer. These include Homestead the Homestead Tissue brand in 2012.

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 sourced from well managed forests. The selection rivals any market leader, while remaining well priced in order to compete successfully in the private label market.

2013 will see the Homestead Soft Toilet Tissue become a stronger and softer roll, allowing the consumer to benefit from increased quality at no added cost. The brand will also launch new products,

Products like the Homestead Comfort 18 Roll PP €4.99 deliver great quality at a very competitive price to the consumer.

At 100 sheets per roll, Nicky Lemons premium kitchen towel is longer lasting and great for jobs around the kitchen.

Splash Kitchen Towels 2 Roll & 4 Roll, along with the new Homestead Soft Toilet Tissue 9 Roll.

“As the market becomes increasingly competitive, it is imperative that we review our pricing on a continual basis,” concluded Homestead Brand Manager, Janice Gibney, “and we look forward to bringing more savings to our consumer in 2013 to ensure we continue to bring value home.”

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Beer Market

Molson Coors are investing heavily in craft beers. Niall Phelan, Director of the Emerging Markets & Craft Beer Division at Molson Coors UK & Ireland, explains the reasons why.

Crafty Moves

at Molson Coors

EXCITING times lie ahead for Molson Coors UK & Ireland. Last summer saw parent company Molson Coors buying Czech brewing giant, StarBev for €2.65 billion, which resulted in Molson Coors UK & Ireland merging into Molson Coors Europe, with its headquarters in Prague. Another result of this strengthening of the Molson Coors brand in Europe was the formation of the company’s new Emerging Markets & Craft Beer unit, which is headed by Niall Phelan.

The company is investing heavily in craft beers, one of the fastest growing

sectors in the Irish drinks trade, which doubled in size in Ireland last year. January of this year saw the acquisition of the Franciscan Well craft beer brand and micro-brewery in Cork City, as well as the announcement of plans to develop a new 75,000HL (150,000 keg) craft brewery, also in Cork.

“Both Scotland and Ireland are high growth areas for Molson Coors and we have seen that putting focus on these markets delivers real value to our business,” explains Niall Phelan.

“In addition, we see craft beer as a long

term trend in the UK & Ireland and believe we are in unique position to help expand this market.”

He believes that craft beer “offers innovation at a pace that most other categories can’t match, providing new flavours and concepts to the consumer that larger brands struggle to provide”.

“There will always be a role for mainstream beers, but we expect the demand for more variety to increase in the coming years as consumers look to trade up and retailers attempt to differentiate themselves,” he notes.

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Beer Market The craft beer growth is not confined to on trade, with Phelan keen to highlight the benefits for off licences: “The category provides an opportunity for retailers to achieve a higher retail price per litre and in turn better margins than mainstream beers.”

Passionate About Beer

He believes the addition of the Franciscan Well brewery is a perfect fit for Molson Coors: “Franciscan Well have consistently produced great, award winning, beers and culturally, are as passionate as Molson Coors about producing beer.”

The Franciscan Brewery will continue to be run by Shane Long, Chairman of the Irish Craft Brewers Association, as has been the case since its foundation in 1998. As well as developing a strong customer base, the brewery’s beers have received international critical acclaim, including the recent accolade of Europe’s Best Dry Stout at the 2012 World Beer Awards for its Shandon Export Stout.

Its portfolio also includes Friar Weisse, Blarney Blonde, Rebel Red and Rebel Lager. The brewery also recently partnered with Jameson Whiskey to produce a limited edition Whiskey Aged Stout for the 2012 Christmas market.

Molson Coors Ireland will expand Franciscan Well’s existing range of brands and its overall annual brewing capacity in Cork from 2,000HL (4,000 kegs) up to 75,000HL (150,000 kegs) per annum. While the existing brewery will remain, the additional capacity will be on a new site in Cork, which is expected to be operational later this year. The objective will be to export more than half of the expanded Franciscan Well Brewery’s output to markets such as the UK, Canada and the US, where there is strong interest in Irish craft beers and whiskeys.

The expansion will create at least 10 additional jobs in Cork.

These investments are central to Molson Coors Ireland’s plans to build a strong share in the burgeoning craft beer market as well as a significant Irish craft beer export business to international markets. Craft beer is expected to grow from €24m to approximately €235m in retail sales value (c.10%) of the Irish beer market by 2017.

The Biggest Little Beer in the World

Molson Coors’ craft beer portfolio also includes Sharp’s Brewery in Cornwall, which brews Doom Bar, the fastest

“

There will always be a role for mainstream beers, but we expect the demand for more variety to increase in the coming years as consumers look to trade up and retailers attempt to differentiate themselves. growing top 50 beer brand in the UK on trade, William Worthington’s Micro Brewery in Burton-upon-Trent, which brews the multi-award winning White Shield, and the phenomenally popular Blue Moon brand from Colorado, one of the biggest craft beers in the world.

We wondered if becoming such a big brand takes away from the ethos of craft beers.

“This is an ongoing debate between small and large brewers,” admits Niall Phelan. “In simple terms, I don’t think consumers mind who owns a brand or how big it gets. Blue Moon has grown because it is a great beer and has consistently high quality standards.

Does a product like Goose Island stop being craft over night when it is bought

by Anheuser Busch? Is the product suddenly different or does the passion for producing great beer change? I don’t think so and I think consumers just want variety and quality beers with a craft twist.”

Phelan believes that the acquisition of StarBev last year gives Molson Coors “greater scale across Europe and access to some leading brands in more key markets, the most famous of which is the excellent Czech beer, Staropramen, as well as a number of very famous beers in StarBev’s, now Molson Coors’ other new markets.”

The move also expands Molson Coors’ distribution network for its beers and improves their purchasing power, “meaning we can keep mitigating rising costs better across the group. We’re also able to pick up some great sales and customer best practice from a wider range of markets too.”

He feels that the Irish and UK operation becoming part of Molson Coors Europe brings “no real change to the Irish business as a result of the European change, other than my role being expanded. We will continue our investment into the Irish beer market

”

and hope to continue our recent history of putting our customers at the heart of everything we do.”

Stabilising On Trade

Regarding the Irish beer market, Phelan believes that the decline of the on trade has begun to stabilise, particularly over the second half of 2013, thanks to a good summer and good December, with the result that sales are now running somewhere between flat and +0.6% over the last six months. The biggest growth sectors are craft beers (up by over 100%), world beers (19%) and standard lager (24%). Molson Coors have enjoyed a tremendous year.

“In the on trade, Molson Coors lager value sales have grown at a rate of 100%, against a market that is growing at just 0.6%,” Niall boasts. “In the off trade, Molson Coors is the only brewer to see both value and volume growth in the last six months. In fact, Carling is the only Top 10 brand in growth in the last three months, +11.5% in value versus a market declining at -7.5% in the latest three months.”

The Need For Change

He warns that Ireland’s lager market will continue to decline unless the industry makes changes. “Consumers, while strapped for cash, are also more discerning and better educated beer wise than ever before,” he warns.

“Retailers and publicans need to embrace this change in drinking habits, embracing the shift to craftbeers.”

He feels that Molson Coors’ positive performance is due to escalate considerably in 2013: “Bringing to market a much needed exciting new premium beer brand, alongside an increased focus on the emerging craft beer sector, will provide some much needed stimulus to a jaded lager market.”

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Confectionery

Joyville:

Eoghan Crawford, Senior Brand Manager, Cadbury Dairy Milk.

The Next Chapter

Eoghan Crawford, Senior Brand Manager, Cadbury Dairy Milk, talks us through the evolution of Joyville and assesses public reaction to the campaign to date.

IRELAND’S confectionery market is worth over €405m and Kraft Foods is the number one manufacturer with 42% value share and growing (Source: ACNielsen, MarketTrack excl. Dunnes &Discounters m/e October 2012).

Cadbury Dairy Milk is the number one confectionery brand and grew by 5%, with last September’s launch of the Joyville campaign contributing to this growth. Eoghan Crawford, Senior Brand Manager, Cadbury Dairy Milk, explains the success of the campaign to date.

According to Eoghan, Kraft Foods will continue to invest heavily in the

Cadbury Dairy Milk brand over 2013, with an estimated investment of circa €4m. “This brand investment will ensure that Cadbury will be the key driver of category growth and build on a successful 2012,” he notes.

Significant Brand Growth

While acknowledging that it is early days for Joyville, Eoghan stresses that already “25% of Irish consumers are now aware and perceive it as interesting, fun and full of chocolate joy as intended (Source: Hall & Partners, December 2012). The Joyville platform has enabled us to do some great advertising, magical in-store displays and launch NPD, leading to significant brand growth during the campaign.”

But what has the public reaction been like to the campaign? “We have had a great reaction from consumers and our customers,” Eoghan reveals. “Irish culture is steeped in myths and legends, so our consumers have happily embraced the myth of Joyville. In The Joyvillians are pictured on Dublin’s Ha’Penny Bridge. particular, we have had

strong results amongst the 18-30 audience, which is very pleasing for the future of the brand and the category.

“The Joyville platform will enable us to grow the Cadbury brand and drive category performance through magical communications, magical in-store display and inspire wonderful new products.”

The Next Chapter

So what is in store for the rest of 2013?

February sees the next chapter in the Joyville story, Eoghan explains. “There will be an epic new TV advertisement, unveiling the secret recipe of Cadbury Dairy Milk,” he states. “This will be supported by a 360-degree campaign and some exciting in-store executions. We have a strong programme throughout 2013 and watch out for some marvellous NPD coming down the line.”

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Easter Confectionery

Sweet Success The Easter confectionery market is worth €32.7m per year, with 68% of Irish households purchasing from the category.

Irish people are expected to feast on almost 10 million Easter eggs this year, as Easter continues to be a key season for confectionery. In 2012, Easter was two weeks shorter versus the 2011 season. However, the market still put in a good performance with value sales in growth at +3% (Source: ACNielsen, Total Market incl. Dunnes, 17-w/e April 22, 2012). The market is now worth €32.7 million and a massive 68% of Irish households purchased Easter confectionery in 2012 (Source: Kantar, 20-w/e May 13, 2012).

Seasonal treats act as a signpost for Easter confectionery and offer an opportunity to generate early season sales. Easter impulse treating across mini eggs and seasonal treats accounted for 11% of sales last year, while kids Easter eggs made for 8% of value sales and the teen and adult eggs market accounted for 65% of all Easter sales and grew by 4% versus 2011 (Source: ACNielsen, Total Market incl. Dunnes 17 – w/e April 22, 2012). Adult eggs, in particular, is a segment that has been a consistent category growth driver.

Retailers can maximise Easter sales by using theatre and dedicated floor displays to drive purchase.

Locating these displays in high traffic flow areas and ensuring they are well stocked is also key in maximising returns.

Nestlé

Innovation played a key role in Easter 2012, with 24% of sales coming through NPD (Source: ACNielsen, Total Market incl. Dunnes 17 – w/e April 22, 2012) and Nestlé Confectionery’s range for 2013 aims to delight consumers and shoppers with an innovative range from its market leading brands. And, with a portfolio offering a wide variety of chocolate treats, plus a strong focus on no artificial colours, flavours or preservatives, as well as sustainability credentials, this range really has something for all the family.

For Easter 2013, Nestlé has launched the New Milkybar Bunny,

a cute little white chocolate bunny, in the seasonal treats sector. As the only white chocolate seasonal impulse offering on the market, this product brings a real point of difference to the category and is certain to capture Nestlé Confectionery’s range for 2013 aims shoppers’ attention to delight consumers and shoppers with an as it provides the innovative range from its market leading brands. perfect treat for Giant Eggs make ideal big gesture younger children. gifts for those special people who Smarties Little Choc Chick deserve a little bit more and Nestlé also returns, following a highly will be introducing two new collection successful launch in 2012. This cute eggs into the Giant Egg category in milk chocolate chick, filled with 2013. The Kit Kat Chunky Giant Egg mini Smarties, is also made with is new from Nestlé Confectionery’s no artificial colours, flavours or best-selling brand and the egg comes preservatives. Plus, exciting news for complete with milk chocolate, peanut 2013 is that the Aero Lamb is back – butter and white chocolate Kit Kat this time as a milk chocolate offering.

Chunkys. Joining the Kit Kat Egg is Smarties and Milkybar mini eggs bags the new Aero Selection Giant Egg, also provide permissible treats for which includes peppermint, orange sharing with all the family. and milk chocolate Aero bars, plus the Nestlé Confectionery will continue Nestlé Caramel Collection Giant Egg, to leverage the broad appeal its which features a large hollow milk breadth of brands enables across chocolate egg, together with a selection Teen & Adult Eggs, meaning there is of Nestlé’s well-loved caramel brands, something for every age, young to old. such as Rolo and Munchies. New for 2013 sees the return, due to popular 2013 is the After Eight Premium Egg, demand, of a large egg from the which comes with a 300g box of the number one after dinner mint brand, nation’s favourite After Dinner Mints.

After Eight. The After Eight Insider Tapping into the trend towards Egg (i.e. an egg with treats inside) is nostalgia and the heritage of Nestlé’s the delicious combination of a mint brands is the Yorkie Digger egg, which flavoured dark chocolate egg with a returns to the range for 2013. The pack bag of After Eight chocolates inside. It contains a hollow milk chocolate egg will be joined once again by the Quality and two Yorkie Milk bars in an eyeStreet Insider Egg; an egg from this catching digger presentation box. Also best-selling gifting brand is certain to returning to the range is the Lion Bar be popular with a wide audience. New Egg, complete with 3D award winning this Easter, and providing something packaging that brings the iconic brand unique to the market, is the Rowntree’s to life.

Randoms Insider Egg. A winning mix These two retro eggs are once again of chocolate egg with popular Randoms joined by Easter classics – three bestjelly sweets inside, this egg is certain selling mug eggs – the Kit Kat Chunky to appeal to teens and young adults.

Mug Egg, Yorkie Milk Mug Egg and Completing the range is the Aero Munchies Mug Egg. The Nestlé mug Bubbles Peppermint Insider Egg.

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Easter Confectionery egg range makes the perfect collectable gift from some of confectionery’s most famous brands.

Kids Easter egg gifting accounts for 8% of all value sales at Easter (Source: ACNielsen, Total Market incl. Dunnes, 17-w/e April 22, 2012). Added value gifts are seen as more special for kids and make the ideal gift for parents and grandparents to give as they are looking for more special and thoughtful gifts. Known and trusted brands are the best-sellers in this category, with the Farmyard eggs from Smarties and Milkybar proving star performers in this category in their first year.

Smarties Chicken, with no artificial flavours or colours, and Milkybar Cow, with all natural ingredients, provides the perfect solution for Easter gifts.

Nestlé had great success with the Smarties Henhouse and Milkybar Milkybarn in 2012 – the No. 3 and 4 selling kids’ fun eggs – and these will return for 2013. The innovative Hen House and Milky Barn shaped box design also offers an opportunity for kids to enjoy the fun of Easter even after the chocolate has gone!

Small Eggs play an important role at Easter, as the key format for younger families. Small eggs meet a specific shopper need – portion

controlling the amount of chocolate for younger kids. Milkybar small egg also contains all natural ingredients, providing the perfect solution for permissible treating and the perfect ‘first egg’ for children.

Along with its Easter range, Nestlé also provides family favourites in terms of its boxed chocolate range with Quality Street, After Eight, Dairy Box and Black Magic making ideal gifts.

Mars Ireland

brand in a novel alternative to Easter Eggs. MaltEaster is available in retail stores nationwide, RRP: €0.82.

Maltesers is one of Ireland’s biggest and best loved confectionery products and is the number one bitesize brand within the Irish market with €8m CSV. Despite continued new product development by competitors in the bite-size sector, 86% of Maltesers shoppers stay loyal to the fun and playful brand.

MaltEaster is a seasonal product that creates a new way for consumers to enjoy their favourite bite sized treat. The bunny shape portrays the light-hearted fun of the Maltesers brand in a novel alternative to Easter Eggs.

2010 saw the hugely successful launch of MaltEaster, a delicious milk chocolate bunny with a crunchy and creamy Maltesers centre. The MaltEaster is back again for 2013 and set to hop off shelves. MaltEaster is a seasonal product that creates a new way for consumers to enjoy their favourite bite sized treat. The bunny shape portrays the light-hearted fun of the Maltesers

Easter Treats from Cuisine de France THE Easter trading period has emerged as one of the biggest seasonal consumer events of the year. Over recent years, consumers’ appetite for Easter-themed products and traditional baked goods has increased dramatically.

The key to successfully delivering incremental sales for your in-store bakery category this Easter is providing consumers with a good choice of Easter classics and novelties. Family favourites such as Cuisine de France’s moreish Hot Cross Bun and the irresistible Lemon & White Chocolate Muffin, as well as new contenders for favourite convenient snack, such as the Chocolate Fantasy Danish, ensure that for Easter 2013, Cuisine de France really have something for every occasion and for everyone to enjoy!

The Cuisine de France Easter Treats The Cuisine de France range meets consumers’ appetite for Easter-themed secondary display unit is the perfect products and traditional baked goods. medium to drive incremental sales and makes it easy for retailers to attract your customers’ interest and create an Easter themed zone for your store. To order an Easter Treats secondary display unit for your store, contact your local category sales specialist or Cuisine de France telesales on 1850 777000.

Lindt

Lindt, the Swiss master chocolatiers, have an extensive and exciting Easter range!

This includes the Lindt Lindor Filled Egg, a 28g Milk Chocolate Egg with a smooth melting filling. Aimed at fans of the Lindt Lindor truffles, consumers are sure to enjoy the Lindor Filled Egg. Let’s not forget the firm favourite with Lindt fans, the Lindt Gold Bunny, now the number one novelty in the Irish market, and a truly iconic Easter product. The Lindt Gold Bunny range is available in 50g, 100g, 200g and 500g sizes in all leading retailers.

The Lindt Gold Bunny Roadshow will arrive in selected shopping centres in Ireland in the run-up to Easter as part of the Lindt ‘Make Easter Sweet for Temple Street’ campaign, which is back with a bang for its sixth year running, to raise much needed funds for Temple Street Children’s University Hospital.

The campaign will involve strong publicity from start to finish and consumers will be heading to the Lindt Ireland Facebook page, www.facebook.com/lindtchocolateireland and following @Lindt_IRL on Twitter to receive regular updates.

The Lindt Gold Bunny: a truly iconic Easter product.

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Healthy Options An increasingly health conscious consumer is good news for the Healthy Options sector, which continues to prove extremely popular.

Raising the Bar on

Health IRISH consumers are increasingly well educated about the risks of diet-related health problems like obesity, diabetes and heart disease, with the result that health and wellness products remain high on consumers’ agenda, despite the recession. In their latest report into the sector, Euromonitor found that Irish consumers showed a growing preference for ‘natural’ food and beverage products free from artificial additives and preservatives. Demand for most types of better for you (BFY) reduced fat and sugar packaged food products continued to grow as consumers became increasingly conscious of the health risks associated with being overweight or obese. Similarly, the growing demand for products free from artificial ingredients contributed to positive performances for most organic and naturally healthy packaged food categories.

Euromonitor feel that rising health awareness among Irish consumers will help to sustain demand for health and wellness food and beverages. New launches, improvements in distribution and marketing activities will also have a positive impact on the performances of individual categories.

A rapidly growing segment, McVitie’s believe that Breakfast Biscuits has the potential to reach a value of €10.6m in Ireland, given the increasing trend of consumers delaying breakfast and eating it out of home, which requires portable on-the-go solutions. With over 120 years of baking expertise, McVitie’s is perfectly placed to take the category to the next level as it is trusted by consumers and has a proven track record of developing tasty biscuits.

New McVitie’s Breakfast Biscuits provide time poor

McVitie’s

United Biscuits has launched McVitie’s Breakfast Biscuits.

Backed by a high impact marketing campaign, the launch will take breakfast biscuits to a more mainstream audience, by tapping into the growing demand for on-the-go breakfast products and leveraging the strength of McVitie’s, which is purchased by 86% of Irish households (Source: Source: Kantar, November 25, 2012).

New McVitie’s Breakfast Biscuits are backed by a high impact marketing campaign, taking breakfast biscuits to a more mainstream audience.

W E N

McVitie’s has launched Breakfast Biscuits made with wholegrain porridge oats to help sustain consumers through until lunchtime.

The brand is available in three delicious avours, and has eye-catching packaging for great shelf standout.

Stock the range or miss out!

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Healthy Options

New McVitie’s Breakfast Biscuits provide time poor consumers with a tasty and convenient way to enjoy breakfast.

consumers with a tasty and convenient way to enjoy breakfast. Made with wholegrain porridge oats to help sustain consumers through until lunchtime, the biscuits are fortified with vitamins, minerals and fibre to provide a delicious and balanced breakfast in a choice of three variants – Red Berries, Oat & Honey and Apple, Sultana and Cinnamon.

The range is portion wrapped in handy packs of four biscuits, which are portable and easily eaten on-the-go.

Made with wholegrain porridge oats to help sustain consumers through until lunchtime, McVitie’s Breakfast Biscuits are fortified with vitamins, minerals and fibre to provide a delicious and balanced breakfast.

Each pack of four biscuits is sold in 300g cartons containing six packs and has an RRP of €3.39. The fresh and energetic packaging design uses a blue and yellow colour palette, which has been proven in consumer research studies to give strong morning and breakfast cues, whilst also providing good shelf stand-out. Each variant is differentiated with its individual variant colour and all packs feature the iconic McVitie’s logo, which has become synonymous with quality and passion for baking.

“With almost 1.2 billion breakfasts eaten in Ireland every year, there is an undeniable opportunity for a mainstream brand like McVitie’s to help drive incremental category growth for Breakfast Biscuits,” said Darren Abbott, Marketing Controller at United Biscuits. “We’re confident that McVitie’s Breakfast will become a major brand within Breakfast Biscuits thanks to its great taste, mainstream appeal and McVitie’s 120 years of baking expertise.

“The range also taps into the ‘Keep Me Going’ snacking occasion that has exploded in recent years, as consumers lives have become more time-stretched,” he said. “This is particularly relevant to the breakfast meal occasion.

The range is now available and we are supporting the launch with a high impact marketing campaign to drive consumer awareness and trial.

We’d therefore recommend retailers get stocked up to take advantage of the high consumer interest and demand.”

The launch will be supported by a €500k marketing awareness campaign that includes in-store promotions and shopper marketing, TV, radio advertising, and sampling to drive trial and purchase.

go ahead!

Following on from the success of go ahead! Chocolate Thins launch in 2012, United Biscuits is extending the range to include a new Forest Fruits variant.

Made up of a milk chocolate topping on

New go ahead! Chocolate Thins Forest Fruits variant is made up of a milk chocolate topping on a light crispy biscuit and packed with a range of delicious sultanas and a fruit filling.

a light crispy biscuit and packed with a range of delicious sultanas and a fruit filling, the variant will be available from January. Sold in a multipack carton, containing five bars with an RRP of €3.19, go ahead! Forest Fruit Chocolate Thins benefit from being under 74 calories per slice, making this new range the perfect product to appeal to health-conscious consumers.

Also in January, UB extended its popular range of go ahead! Crispy Fruit Slices with the introduction of a new Strawberry variant. With an RRP of €2.49, the new Strawberry variant will be available in a multipack containing five 39g portions.

The new launches tap into the ‘Healthy Choices’ snacking occasion and will be supported by the return of the popular go ahead! ‘GURU’ TV adverts, as part of an exciting marketing campaign for 2013 to raise awareness amongst consumers nationwide.

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Healthy Options

The Weight Watchers from Heinz frozen ready meal range offers an extensive range of market leading recipes such as Chicken Tikka Masala.

Weight Watchers from Heinz

Weight Watchers from Heinz is the undisputed leading brand in the frozen ready meal sector, with 29.7% volume share of a market which is valued at €15m (Source: TNS, September 2012). Manufactured in Dundalk, County Louth, the Weight Watchers from Heinz range of frozen ready meals continues to drive the category, with convenient meal solutions in both traditional and ethnic varieties.

The range has everything to offer consumers who are seeking to lead a healthy lifestyle but who expect not to compromise on taste.

The Weight Watchers from Heinz frozen ready meal range offers an extensive range of market leading recipes such as Chicken Tikka Masala, Creamy Chicken & Mushroom Pasta and Ocean Pie. Proving that you can still have the naughty treats that you love, Weight Watchers from Heinz also offers a delicious range of frozen desserts, including delectable recipes such as Belgian Eclairs and Double Chocolate Brownies.

Weight Watchers from Heinz Steam & Serve is a range of delicious ready meals which are ready in minutes from the microwave using steaming technology to provide a gentle swirling heat, which cooks the meal to perfection. This gentle action keeps in the natural flavours, ensures the vegetables stay crunchy and the meat remains juicy and moist: steam fresh flavours delivered straight from the freezer!

Varieties include Chicken Chop

Suey with Tasty Long Grain Rice & Vegetables, Sweet Mango Chicken with Tasty Yellow Rice & Vegetables, and new additions to the range White Fish & Truilli Pasta and Red Thai Chicken Curry.

All products within the Weight Watchers from Heinz range exclusively feature the Weight Watchers ProPoints value per serving on pack.

top box range contains mouth-watering traditional flavours, produced and packaged to meet consumers’ demands; presented in convenient, trendy, 42g pocket-sized boxes featuring clean and simple packaging designs. The hard boiled candies are free from artificial flavours, preservatives, hydrogenated fat and Aspartame and are a natural choice for a healthier lifestyle. The sugar-free sweets are suitable for diabetics, vegetarians and perfect for people wishing to reduce their calorie intake without sacrificing confectionery treats, as each Sulá sweet contains only 7-9 calories!

If shelf space is an issue, Sulá offer a free counter top merchandising solution or custom made clip strips.

Contact Kelkin Ltd. to place your order now on (01) 4600400.

Kelkin

The Irish market for sugar-free confectionery is growing steadily, driven by consumers’ demand for calorie controlled, convenient, healthier products and the opportunity for future growth is absolutely massive.

Retailers only have to look at other key European markets to fully understand the enormous potential; sugarfree sweets now account for 4.5% of total hard candy sales in the UK, but this compares to a 63% share for sugar-free sweets in Spain, for example.

Kelkin have relaunched the Sulá sugar-free confectionery range. Sulá’s flip

Kelkin have relaunched the Sulá sugar-free confectionery range.

Sulá’s flip top box range contains mouth-watering traditional flavours, produced and packaged to meet consumers’ demands; presented in convenient, trendy, 42g pocket-sized boxes featuring clean and simple packaging designs.

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Healthy Options has captured €4.8m of biscuit sales, with 24% of Ireland’s population buying into the brand.

Indeed, ‘Healthier Biscuits’ (healthy biscuits & cereal bars) is the largest and fastest growing segment

This new top-up format is the ideal offer for shoppers in the convenience channel and smaller stores whose shoppers are focused on top-up shopping missions. The packs will be available in the popular selling 300g Belvita flavours: Milk and Cereal and Honey & Nuts.

The launch is being supported with a strong Belvita brand marketing campaign, including TV and PR, as well as in-store support, including POS.

Belvita has launched an exciting new three-pack Belvita ‘top-up’ pack, specially for the convenience channel.

Belvita

Belvita has launched an exciting new three-pack Belvita ‘top-up’ pack, specially for the convenience channel.

Following the strong performance of Belvita over the past year, with the brand growing at +149% in value terms (Source: Kantar Worldpanel, 52 w/e September 30, 2012), 2013 sees the launch of a new format for the breakfast biscuits, especially for the convenience channel.

Belvita is now the number seven biscuit brand in the market (ex PL),

within the biscuit category and Belvita is the fastest growing brand within the ‘Healthier Biscuits’ segment. It has gained +510 bps and now holds 9.3% share of the ‘Healthier Biscuits’ segment (Source: Kantar Worldpanel, 52 w/e September 30, 2012).

Belvita’s new top-up format is the ideal offer for shoppers in the convenience channel and smaller stores whose shoppers are focused on top-up shopping missions.

Flora Continues Mini Marathon Sponsorship FLORA, Unilever’s heart healthy spreads range, has signed a deal to continue its sponsorship of the Flora Women’s Mini Marathon. In 2013, Flora will celebrate 10 years as title sponsor of this inspiring 10k event, which attracts some 40,000 participants to Dublin each June Bank Holiday weekend.

Since Flora came on board with the event in 2004, the brand has invested approximately €3.5m in the sponsorship and supporting activities. The latest sponsorship agreement secures Flora’s title sponsor role of the event until 2015.

“The Flora Women’s Mini Marathon has been an integral part of our marketing strategy in the Irish market for a decade now,” said Sian Jenkins, Brand Manager, Flora. “The event provides a perfect platform for us to demonstrate our commitment to heart health through healthier diet and lifestyle.

It’s fantastic to see 40,000 women pounding the pavement on race day and knowing that we’re helping to make people’s lives healthier. We’re very excited about our 2013 campaign, which we hope will encourage even more people to make those small dietary and lifestyle changes which can make all the difference to their long term heart health.”

Pat Coyle, Chairman of the Women’s Mini Marathon Committee, added, “2013 will mark the 31st year of the running of the Women’s Mini Marathon, and the 10th year that Flora has been involved as title sponsor. Not only has Flora’s support to date been invaluable to the success of the event, their

Pictured are (l-r): Jackie Wright, Flora Women’s Mini Marathon Committee, and Sian Jenkins, Brand Manager, Flora.

sponsorship is thriving and I’m delighted that Flora recently announced they will continue to sponsor the event until 2015.”

For more information, see www.florawomensminimarathon.ie and www.facebook.com/FloraWomensMiniMarathon.

www.retailnews.ie|January/February 2013|Retail News|37

Healthy Options

Flahavan’s has also introduced a new individual sachet format where

Flahavan’s has launched a new Apple, Raisin & Cinnamon sachet, as part of its popular Quick Oats range.

Flahavan’s

Flahavan’s, Ireland’s favourite porridge oat brand, has launched a new Apple, Raisin & Cinnamon sachet, as part of its popular Quick Oats range. The new product combines red apple pieces, juicy raisins, and a hint of cinnamon with all the wholegrain goodness of Flahavan’s porridge oats.

Oats are a nutritious warming food that are high in fibre, low in salt and saturated fat, with no artificial flavours. They contain all the healthy ingredients needed to warm up any cold morning.

The new Flahavan’s Quick Oats Apple, Raisin & Cinnamon sachets are the newest member of the Quick Oats range, which also includes natural, multi seed and organic sachets, drum and portable porridge pots in natural, multi seed, strawberry and organic varieties. Flahavan’s Quick Oats appeals to on-the-go consumers because they require zero effort.

Designed for maximum shelf impact and available in 10 x 40g servings, Flahavan’s Quick Oats Apple, Raisin & Cinnamon sachets are deliciously tasty and easy to prepare in the microwave in just two minutes.

consumers can use the free reusable liquid measure provided or simply pour milk or water directly into the sachet and fill to the splash line, making it the ideal portable healthy start to any day, either at home or in the office.

Grown, milled and produced in Ireland, Flahavan’s Quick Oats range provides a wholesome breakfast that’s packed with taste, ready in minutes and keeps consumers going right up to lunch.

As an independent Irish family business, Flahavan’s has been milling quality oats at the family mill beside the River Mahon in Kilmacthomas, Co. Waterford for over 200 years. Flahavan’s is Ireland’s favourite porridge oat brand and has been delivering continuous growth to the oats category in line with consumers’ increasing interest in porridge as a healthy breakfast cereal choice.

Flahavan’s is proud to support Love Irish Food, an initiative led by Irish manufacturing brands seeking to promote Irish food and drink brands in Ireland. For more information, see www.flahavans.com or www.facebook.com/ flahavans.

GlaxoSmithKline has committed to reducing sugar and calorie content in Lucozade and Ribena in Britain and Ireland.

The Ribena and Lucozade drinks ranges already include lower calorie options, and GSK is currently working further to develop healthier formulations of Lucozade Energy and Ribena ‘ready to drink’ products by reducing the sugars and calorie content, whilst not compromising the nutritional or functional benefit they provide to those who consume them.

By the end of 2013, GSK will have set long term commitments for the reduction of calorie and sugar content across its drinks portfolio. As a first step, over the coming year, it will: • Reduce the calorie and sugars content of 65% of the Lucozade Energy range sold in the UK & Ireland by 9% and 8%, respectively (based on 2011 levels), equivalent to removing 583 tonnes of sugars and 2.2 billion calories.

• Continue to reduce the calorie and sugars content of ready to drink Ribena products sold in the UK and Ireland, reducing sugars content by 10% by 2014 (vs 2011 levels), equivalent to the removal of 850 tonnes of sugars and 3.4 billion calories.

GlaxoSmithKline

As part of wider efforts to promote healthy lifestyles to consumers,

GSK is currently working further to develop healthier formulations of Ribena ‘ready to drink’ products by reducing the sugars and calorie content.

38|Retail News|January/February 2013|www.retailnews.ie

Healthy Options Sprite

SPAR after entering a nationwide competition.

Continuing its commitment to Late last year, The Radical innovation, Coca-Cola Ireland Food Company entered a is launching a new Sprite recipe nationwide competition to find using stevia extract, which will Ireland’s best new food producer reduce the sugar by 30%. The and win the opportunity to sell launch will mean that one of their products in SPAR stores Ireland’s most loved and popular across the country. The Dublinsoft drinks can reduce sugar based company beat off stiff content and calories, while competition with their Radical maintaining its great taste.

Oats, a chilled product made only The new stevia-based with Irish oats, milk, cream and sweetener is an extract of the yogurt. Designed to be eaten for stevia plant which originates breakfast or as a snack, it retails in Paraguay, whose leaf is a at €1.69 and comes in Original, unique source of intense, natural Strawberry and Raspberry sweetness. The stevia extract flavours. particularly complements lemony The Radical Food Company is and fruity flavours, making it headed up by husband and wife the perfect natural sweetener team, Miriam Cox-Monahan and to enhance the taste of Sprite.

Tony Monahan, who wanted to Over the last decade, the overall develop a tasty product that would content of sparkling beverages appeal to their four hungry kids, distributed by Coca-Cola in Tabitha, Ayesha, Zuleika and Kai. Europe has decreased by 10%.

“We’re very excited to have this The launch opportunity to sell our product is being through SPAR and hope people supported make it a new year’s resolution with a full ATL Coca-Cola Ireland is launching a new Sprite recipe using to get radical with oats,” said Miriam. and BTL stevia extract, which will reduce the sugar by 30%.

Simon Marriott, Trading campaign, broader range of low calorie drinks to Director for SPAR Ireland said: “There including press, consumers. couldn’t be a better time of year to outdoor, PR, “The decision to reformulate Sprite launch a new product which is healthy digital and to include Stevia is in response to the and tasty and importantly, made by an sampling. growing consumer need for healthier, Irish company, with Irish ingredients.

Sprite with more natural alternatives,” noted This is exactly the type of product our Stevia will Aonghus O’Flaherty, Brand Activation customers are after and we expect it to replace the Manager for Coca-Cola Ireland. “We sell well in our SPAR stores across the existing have an ongoing commitment to country.” formulation innovation and are and sit constantly looking to alongside refine how we satisfy Sprite Zero, consumer needs. This offering the is an exciting stepsame great change for the brand, refreshing and consequently taste but one which we plan to with 30% invest heavily in over less sugar. the coming months The new and years.” stevia-based sweetener is not intended Radical Oats to replace Radical oats is a new other snack containing sweeteners the superfood oats used by and low-fat probiotic Coca-Cola yogurt. The brand but is a new Irish product was welcome developed by aspiring addition Irish food business, The Radical Food New Sprite with stevia extract to the range and Company, who won the Ayesha Monahan (16) is pictured with new Radical Oats, was launched in response to will help opportunity to get their a chilled product made only with Irish oats, milk, cream growing consumer demand provide a product listed with and yogurt. for healthy options.

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www.retailnews.ie|January/February 2013|Retail News|41

Retail Ireland: Monthly Update Survey Suggests Retailers Hopeful for 2013 RETAIL Ireland reported over the New Year that despite tough trading conditions, retailers believe 2013 may see an upturn in sales. Many of our members were reporting increased sales in the run-up to Christmas and a year-on-year rise in postChristmas sales.

However, we warned that similar trends in December 2011 were followed by a slip in sales in early 2012. We said Government should focus on getting the domestic economy back on track or put recovery at risk. The grocery and FMCG sectors are particularly vulnerable.

Retail Ireland released its latest retailer business sentiment survey, which showed a marked increase in positivity since last year: • 31% of retailers surveyed rated their own business in Ireland currently as poor, 63% as average and 6% as good; • 20% believed their business in Ireland would be poor in three months’ time, 53% said it would be average but 27% said it would be good.

“These findings show a marked improvement from this time last year, when two-thirds of retailers considered their business to be poor and a similar number felt it would be poor three months later,” noted Director Stephen Lynam. “Despite the perceived increase in sales in recent months, retailers continue to be concerned.

Last Christmas, retail sales data showed a rise, only for the market to slip back again in the new year. Ireland’s domestic economy remains in a very fragile state.

Unless Government can give consumers the stability and confidence they need to spend, Stephen Lynam, Retail Ireland sustainable recovery will not take place.”

Director.

New Drivers Licence Photography Policy will Hurt Retailers RETAIL Ireland and photo ID professionals met with the Road Safety Authority (RSA) in January to discuss the proposed photo capture process for the new driving licence being rolled out nationwide.

The Government is introducing a new credit card style driving licence in January 2013 and sought a service provider to fulfil this brief through the EU Tender process. SGS have been awarded the tender, which includes the capture of each individual’s photograph for their driving licence on-site at one of SGS’ locations to be set up around Ireland by September 2013.

SGS will not accept any photograph other than those captured on their premises by their machines, even though they had the option to scan photographs brought in by applicants. This will have a devastating impact on many retail outlets with photo booths or who offer photo services.

At the meeting, we explained that 500 jobs that will be lost as a result of this decision. We asked why the RSA included the option to accept a scanned photo in their tender document, yet they are now advising that the only format is to have a photo taken on site in the SGS office.

We will be keeping our members updated on progress.

Retail Ireland to Hold First Annual Conference in May RETAIL Ireland will hold an annual member conference for the first time in May of 2013. Given the highly competitive nature of the retail sector, heightened by the reduced spend of consumers, the conference will focus on how the sector and individual retailers can inspire and best connect with consumers. ‘Inspiring the Consumer’ will be the title of the event. More details will be available on our website: www.retailireland.ie.

Retail Ireland Welcomes Cancellation of Loyalist Parade RETAIL Ireland welcomed the news in early January that the planned protest by loyalists in Dublin city centre was not to proceed. We had been in contact with the Garda Commissioner, and expressed serious concerns about the impact the protest would have on the civic and commercial life of the city if it went ahead.

“I wrote to the Garda Commissioner objecting to the protest and outlining how it had the potential to disrupt civic and commercial activity in Dublin city centre,” said Retail Ireland Chairman, Frank Gleeson. “I am delighted that calm heads prevailed.”

Retail Ireland will continue to work with the Gardaí against anti-social behaviour and retail crime that poses such a threat to our sector and to town centres around the Retail Ireland Chairman, country.

Frank Gleeson.

Tel: 01-6051558 www.retailireland.ie

42|Retail News|January/February 2013|www.retailnews.ie

On the Vine

Facing Up to

Reality Increased duty, poor harvests and growing competition for available wine: Jean Smullen looks at the big challenges facing the wine industry in 2013.

2012 ended with a body blow to the wine industry, with the Government adding €1 duty on every bottle of wine. In a nutshell, when the consumer spends €10 on a bottle of wine, including VAT, the Government’s tax take amounts to €4.65: over 46% of the price of the bottle.

The last time the Government increased tax on wine in 2008, there was a huge increase in cross border trading. This meant the market for wine dropped by 9% in 2008 and 9.5% in 2009. Because they were losing tax revenue, the Government rescinded the increase in 2009, resulting in the repatriation of this trade back to the Republic of Ireland and a modest recovery in wine sales. The

great Albert Einstein once defined insanity as doing the same thing over and over again and expecting different results!

The Climate Factor

The second influence to impact on the wine industry in 2012 was that of climate.

While we all remember the abysmal weather in Ireland, the flooding and the persistent rain, the global outlook brought everything from drought to rain storms, with the result that European wine regions, with a few exceptions, had a lower than normal harvest.

The Southern Hemisphere fared no better: a cooler than normal year in New Zealand, for example, meant a reduced volume harvest. Two of

the exceptions, however, were South America and South Africa, who had a good harvest and now have surplus wine available to sell. However, before we get carried away, the dollar price is impacting in South America, who will be increasing their prices in 2013 and the unrest among workers in South Africa will also have an impact there.

Another key factor affecting wine sales in 2012 was the emergence of market competition for available wine. Growing demand in new markets such as China, Brazil, the US and the Far East, offering better margins and growing consumption, meant that the global focus of the wine trade shifted to developing these markets.

Ireland and the UK will now have to fight harder than ever to secure wine supplies at competitive prices or even on allocation from the producers because of this.

Wine Offers

In 2012, the Irish wine market was kept afloat by wine offers. Volume sales grew but value was flat.

The growth was driven by special offers, mostly in the multiples and bigger groups. The average MAT retail price of a bottle of sold on the Irish market during 2012 was in the €6-6.99 price bracket. This impacted on the independent off trade, with over 30 independent shops closing their doors in 2012.

2013 is going to be even tougher. First of all, the

www.retailnews.ie|January/February 2013|Retail News|43

On the Vine average price of a bottle of wine is going to increase by at least €2 in order to meet the additional tax requirement and give a better margin to the industry players. In order to maintain any degree of quality or drinkability, the consumer is now going to have to pay at least €2-2.50 more a bottle, realistically, with a minimum price of €8.99-10.99 to get something drinkable. That is the reality and there is no getting away from it. It’s a big ask for a customer who is now faced with property and other new tax liabilities.

Fashionable Wines

The fashionable wines are also going to increase in price. New Zealand had a much smaller vintage so it simply does not have the wine to sell. The world wants New Zealand Sauvignon Blanc and there is not enough of it to go around. This means there will be very few offers and those who enjoy this wine are going to have to pay full price (€10-15) for entry level and mid-priced wines from New Zealand.

Italian Pinot Grigio, the second most popular wine style on the market, is also going to cost more. The Italian producers are also looking for higher prices for their wine, which will also have an impact on the price.

Looking at the winners and losers by country of origin in 2012, figures to September 2012 show Chile, France, Spain, Italy, Argentina and Portugal showing good growth in volume sales. France and Argentina saw the biggest growth in value sales for the same period, with Chile and Italy also showing a healthy increase in value sales.

Predictions for 2013 My predictions for 2013 are: New Zealand Sauvignon Blanc will continue to be a sought after wine, with the consumer prepared

NOffLA Off Licence of the Year DICEY Reilly’s Off Licence in Ballyshannon, Co. Donegal has been named National Off Licence Association (NOffLA) Off Licence of the Year 2013, while also walking away with the Connaught/Ulster Off Licence regional title for the seventh year in a row.

Dicey Reilly’s has been a leader in the off licence sector Brendan and Sinead O’Reilly, owners of Dicey Reilly’s Off Licence in Ballyshannon, Co. Donegal, celebrate being named NOffLA Off Licence of for many years the Year 2013. now, attracting customers from all over the North West with its large and exciting selection of wines, world beers and spirits.

“We are completely ecstatic to have received the accolade of National Off Licence of the Year 2013 and absolutely thrilled to have won the Connaught/Ulster Off Licence of the Year for the seventh year running,” said Brendan O’ Reilly, owner. “This is testament to our wonderful team, who deliver the best possible service to our customers every day. We would like to thank them and all our customers and friends, whose continued support and loyalty has allowed us to be here still enjoying it all 36 years later!”

NOffLA presented 13 Awards in total on the night, recognising and showcasing the off licences around the country that offer exceptional service to customers and demonstrate excellence in retail standards.

Other award winners included The Wine Centre, Kilkenny, who were named ‘Responsible Retailer of the Year’; O’Donovan’s in Cork, winner of the Specialist Off Licence of the Year; Shield’s Londis, who were named Food Retailer Off Licence of the Year; and Donnybrook Fair, who won the Customer Service Award.

to pay the premium price for special occasions, though less so for everyday drinking. Italian Pinot Grigio will continue to be the staple of many a shopping trolley. Red wines from Chile, Argentina, and Spain will continue to perform strongly, while Prosecco will remain the sparkling wine of choice for family celebrations.

We are riding out the perfect storm in the wine industry in Ireland, but education and promotion are now more vital than ever to keeping the industry alive.

We have a new generation of emerging wine consumers: we must educate them about pricing, about what to look

for in quality terms when buying a wine and about the responsible use of alcohol.

On top of that, the industry also has to keep relations with suppliers strong and realistic. Quality wine selling at a €6.99 price point is going to be impossible to achieve. The lack of quality at that price will drive the consumer to spend a little more. They may buy less but

if we can encourage them to trade up, this could be a positive development in the long term. Education and promotion will be the key to achieving this.

44|Retail News|January/February 2013|www.retailnews.ie

Market News Oreo Launches Lunchbox Pack TO cheer up lunchtime, Oreo, found in one in every four households in Ireland (Source: Kantar Worldpanel Data, 52 w/e Octoher 28, 2012), has announced the arrival of new Oreo 2 Biscuit Snack Packs – a great way to bring fun back to lunchtime. The handy new 2 biscuit snack pack fits snugly in all types of lunchboxes and is available in original and chocolate crème.

They are also perfect for sharing, so consumers can grab a glass of milk and twist, lick and dunk together. The 2 biscuit snack packs are the latest addition to the Oreo biscuit family, which includes the classic Oreo, Oreo Chocolate Crème, Double Stuff and the baby of the family, Mini Oreo. The launch will have TV and outdoor support throughout the month of February.

Choose a Chunky Champion KIT KAT is calling on consumers to get involved in the battle to select a new flavour to join the Kit Kat Chunky range. Four limited edition bars, Kit Kat Chunky Mint, Kit Kat Chunky Coconut, Kit Kat Chunky Hazelnut and Kit Kat Chunky Choc Fudge, will battle it out in the Kit Kat Choose a Chunky Champion campaign for 2013. The four new flavours will only be available in stores for a limited period, so consumers need to be quick to try each one and cast their vote at www.facebook/kitkatuk before March 15, 2013. Pictured battling it out in a bid to get their chosen flavour to top of the polls are (l-r): Gary Talbot, Fudgetron (Chunky Fudge); Ian O’Regan, Mintinator (Chunky Mint); top model Karena Graham, aka Coconutrix (Chunky Coconut ) and Mathew John, Hazelnutter (Chunky Hazelnut).

Unilever Shakes Up Deodorants UNILEVER Ireland is continuing its commitment to finding new ways to reduce the environmental impact of its business with the launch of a ground breaking new Compressed packaging format across its portfolio of female aerosol deodorants. The Compressed smaller pack is half the size of traditional aerosol deodorants and is being introduced simultaneously across Sure Women, Dove and Vaseline from February. In a game-changing move for the category, the new compressed packs have the same protection and care but last just as long as bigger cans, whilst containing half the gas volume – down from 150ml to 75ml and using up to 28% less packaging. It will be supported by a massive €400,000 marketing spend throughout 2013 in Ireland.

New Flavour Halls Mentholyptus KRAFT Foods has introduced a new flavour variant to the Halls Mentholyptus range. Halls Mentholyptus Assorted Citrus contains three mild menthol flavours, orange, lemon and lime.

Supporting the launch of Assorted Citrus, the brand has received a new look across its Mentholyptus and Soothers products, including more modern, sharper graphics to improve standout on-shelf. In addition, each pack will now feature a ‘menthol power meter’ with a different strength for every occasion, scaling the flavour from 1 (mild) to 5 (strong). To help retailers drive impulse sales, Halls has created a new counter display solution (pictured), enabling retailers to present both Halls Mentholyptus and Halls Soothers together at the most impulsive part of the store – the till.

Lynx Takes Consumers Out Of This World LYNX is embarking on its most ambitious marketing campaign to support new variant Lynx Apollo. The meteoric campaign, which will see Lynx send one incredibly lucky fan into space, will be supported with a €14.6m marketing spend across digital, PR, out of home and TV, with a Shazam-enabled ATL ad to enter the competition. The epic Lynx Apollo campaign, which is being fronted by renowned astronaut Buzz Aldrin, is set to send sales of the new variant skyrocketing.

Available now, Lynx Apollo is the first variant to run across the entire Lynx portfolio, which includes body spray, deodorant, haircare and shower.

Kellogg’s Sponsors ‘Breakfast With’ on Ireland AM KELLOGG’S is the sponsor of the new ‘Breakfast With’ segment on TV3’s Ireland AM. The brand new celebrity interview slot takes place twice a week, all year round, broadcasting live from the MV Cadhla barge on Dublin’s Grand Canal. The new partnership creates a year-round presence for Kellogg’s on Ireland AM. The sponsorship is a tactical move by Kellogg’s to communicate with Irish consumers at breakfast time. “Our new partnership with Ireland AM is a perfect fit as it brings together Ireland’s favourite breakfast brand and Ireland’s number one breakfast show with the aim of brightening the mornings of Irish consumers by providing them with the best start to the day,” said Aideen Murphy, Senior Brand Manager, Kellogg’s, pictured with Anna Daly, presenter.

46|Retail News|January/February 2013|www.retailnews.ie

Shelf Life A MUST for everyone’s shopping list this Easter has to be Avonmore Cream. Produced by Glanbia Consumer Foods, the range consists of ever popular Fresh Cream, the chef’s favourite Double Cream, convenient Freshly Whipped Cream, delicious Avonmore Cooking Cream, which has 50% less fat than standard cream and is perfect for all savoury dishes, and new Avonmore Fresh Dessert Cream. Luxuriously thick and ready to pour, Avonmore Fresh Dessert Cream is perfect for pouring directly over Easter desserts. Fresh Dessert Cream has a deliciously smooth, thick consistency and is delicious with apple pies, brownies, berry compotes and all consumers’ favourite Easter treats.

CONGRATULATIONS to Retail News Wine Correspondent, Jean Smullen, who has been nominated by the International Wine & Spirit Challenge for 2013 Wine Communicator of the Year. This is a massive honour for an Irish wine journalist and we’d like to wish Jean all the best for the title, with the winner being announced in Verona on April 6, 2013.

DANONE has unveiled a new yoghurt pot, which replaces the traditional pots, which have remained unchanged for almost 40 years. With its cylindrical shape, rounded at the base, it feels better in the hand and makes it easier to get every last drop of yoghurt in the pot. To stand out from its competitors on the shelves and to make it more recognisable, each product brand is given its own colour. The curves and inscription on the bottom of the pot, integral parts of Danone’s DNA, echo the very first yoghurt pots created by Isaac Carasso over 90 years ago. The new pot is being rolled out across the Vitalinea and Activia ranges from Danone and will be supported by an extensive marketing campaign.

MASTER Distiller of Jameson Irish Whiskey, Barry Crockett is to retire in March, bidding a fond farewell to the Midleton Distillery in Cork after 47 years; 31 of which he spent as Master Distiller. The announcement by Irish Distillers Pernod Ricard came, fittingly, in the week in which Crockett was honoured by Whisky Advocate with its Lifetime Achievement Award. Brian Nation, who has been mentored by Barry Crockett for the last 10 years, will take over the role of Master Distiller.

TOPAZ is to invest €3m in a new interactive loyalty game for customers called ‘Play Or Park’. The company expects ‘Play Or Park’, a retail based loyalty programme using an ongoing game mechanic, to attract over 250,000 members in its first year. To enter the game, customers collect points which enable them to ‘Play’ for an experience of a lifetime prize every month or ‘Park’ them and carry them forward to participate in a following month’s game.

Among the monthly prizes on offer are a luxury holiday in Rio, a new car with free fuel for a year, an all expenses paid shopping trip to New York with three friends and a trip for four to the Monaco Grand Prix. Pictured at the launch of ‘Play Or Park’ are: models Tatiane Aragao and Sinead Noonan, with Paul Candon, Director, Marketing & Corporate Services, Topaz, and John Williamson, Topaz CEO. FMI Ltd, one of Ireland’s leading Field Management companies, has announced the creation of 24 full time permanent jobs after the creation of their new client telesales operation, FMI Respond, based at their head office in Dundrum, Dublin. With specialist telesales as an extension of their current field sales service, FMI are the first outsourced sales company with the ability to offer both routes to market to their client base. Charley Stoney, Managing Director of FMI Ltd, is pictured at FMI Respond.

SMURFIT Kappa’s European operations have scooped four WorldStar Awards for their expertise in paper-based packaging solutions.

WorldStars are the most important packaging awards competition in the world, organised by WPO (World Packaging Organisation) and are only presented to packs that have already won acknowledgement in national or regional competitions. Smurfit Kappa was awarded WorldStars in the Food, Beverages and General Packaging categories and the awards confirm Smurfit Kappa’s position as leading pan-European suppliers of packaging to brand owners and manufacturers with national and international markets.

A GROUP of 19 retail professionals from across Munster and Leinster are the first in Ireland to undertake the City & Guilds Retail Knowledge Qualification via supported eLearning. Through an innovative approach to vocational learning, course participants, for the first module of the qualification, focused on the Retail Selling Process, generating more sales and revenue for their various businesses. The candidates were from a range of well-known Irish businesses such as the Dairygold Co-Op Superstores and Grafton Merchanting ROI Group. The training was delivered by approved City & Guilds centre, RTCL, who recognised the need to provide flexible training for retail staff in a variety of areas, without putting further strain on already stretched resources.

DUE to a production error with the Wallplanner which came free with the December 2012 issue of Retail News, you will find a revised Wallplanner inside this very issue. Apologies for any confusion and inconvenience caused.

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THE NO.2 CIGARETTE BRAND WORLDWIDE* *Euromonitor International, Global Tobacco Findings 2012: Tobacco In A New Era, October 2012 This advertisement is for tobacco retailers only and should not be made available to the public nor should it be displayed in any area where it is visible to the public.