JULY/AUGUST 2012
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www.retailnews.ie|July/August 2012|Contents|3
Contents Retail News Interview
Burning Issues? THE illicit tobacco trade is an area we have reported on continuously in the pages of Retail News in recent years for one simple reason: it remains a massive issue, and one which is costing you money every day, as it accounts for in the region of 30% of Ireland’s tobacco market. It is also costing the Government up to €500m every year in terms of lost excise and VAT returns. In his first major interview since taking over as General Manager of PJ Carroll early in 2011, Steven Donaldson talks to Editor John Walshe about the scale of the problem (Page 14). In a hard-hitting exclusive, Steven pulls no punches in his assessment of how Ireland is becoming a ‘basket case’ in terms of tobacco regulation, he highlights how getting all stakeholders around a table is the key to tackling the issue of illicit trade and advises retailers on how to maximise returns in the fast-changing tobacco category. Elsewhere, our Chief News Reporter, Pavel Barter assesses the fall-out from the Government’s proposal to introduce calorie counts on menus and what it might mean for your delis and food-to-go (Page 4); David Berry, Commercial Director at Kantar Worldpanel, examines the big changes in the Irish grocery sector since the advent of the recession (Page 5); Jean Smullen reveals the Top 20 Wine Brands in Ireland (Page 31) and IMRO’s Keith Johnson advises on why you may need an IMRO licence in your store (Page 44).
14 In his first interview since taking the reins of PJ Carroll last year, Steven Donaldson talks about how to tackle the illicit trade, the changing tobacco consumer and how we need to alter the way we think about tobacco control.
5
14
News
4
Calorie Count Initiative Has Critics.
6
7
8
9
Kathleen Belton Editorial & Marketing Director
Value the Key Driver in Grocery Sales; Seductive Nutrition from Unilever.
Keynote Speakers Announced for SHOP 2012; First Contactless Payments at BWG Stores.
Top 20 Wine Brands
31 Jean Smullen examines the Top 20 wine brands in Ireland, and what they have to offer your consumers.
36 Repak welcome Health & Safety
18 BeSMART.ie is a
NOffLA Calls for Mandatory Training for Alcohol Retailers; Renewed Organic Focus; Bord Gáis Signs Landmark Deal with Siemens. IPSO Warns of Credit Card Scam; Centra Offers Contactless Technology; Collateral Cost for Retailers Over Ulster Bank Meltdown.
31
Waste Management
5
Responsibility Initiatives; Consumer Sentiment Up.
free, easy to use, on-line tool from the HSA that empowers small businesses to prepare written risk assessments and a safety statement.
SHOP 2012
26 Entries are open for the 2012 Irish Cheese Awards at SHOP 2012, which takes place from September 25-27 in the RDS Simmonscourt.
Retail Ireland: Monthly Update
30 Another Big Cigarette Haul Proves Smuggling Problem Remains Huge; Government Instigates Review of Producer
Londis Launches Centralised Chilled Distribution.
Government’s review of the Producer Responsibility Initiative, but at what ‘PRIce’?
Food Safety
39 HH Solutions awardwinning product range helps to make food safety compliance easy for retail outlets.
Shop Profile
40 Jim Burke’s Costcutter in Cullies, Co. Cavan, is proof that a strong work ethic and the right investment can pay dividends, even in the current economic climate.
In-Store Music
44 If you play music in your store via radio, TV etc, you need an IMRO licence.
Regulars & Reports
T A R A Managing Director: Fergus Farrell
Published by: Tara Publishing Co. Ltd.,
Editorial & Marketing Director: Kathleen Belton
Poolbeg House, 1/2 Poolbeg Street, Dublin 2.
Editor:
Tel: (01) 2413095 Fax: (01) 2413010
John Walshe
johnwalshe@tarapublishingco.com
Advertising: Kathleen Belton kathleen@tarapublishingco.com
Web: www.retailnews.ie Email: retailnews@tarapublishingco.com
Subscription to Retail News: e95 plus VAT Email: aoife@tarapublishingco.com
Adrian Murphy
adrian@tarapublishingco.com
To advertise in Retail News, call (01) 2413095 or email retailnews@tarapublishingco.com
Origination by: Rooney Media Graphics
Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen
Reproduction without written permission is strictly prohibited.
Printed by: W&G Baird
10 Industry News 20 Back to School/Lunch Box 42 Ethnic Foods 45 Market News 46 Shelf Life
4|Retail News|July/August 2012|www.retailnews.ie
News
Calorie Count Initiative Has Critics A NEW proposal to introduce calorie counts on menus may be too much to stomach for small businesses. The scheme, spearheaded by the Food Safety Authority of Ireland (FSAI) and Department of Health, is intended to combat obesity, but some retail representatives consider it a voluntary programme “with a gun to the head”, due to its impending deadline. “This train is leaving the station,” Dr James Reilly TD, Minister for Health, has said. “If industry doesn’t comply, we will legislate”. When contacted by Retail News, the Department of Health gave food service businesses six months to comply with the FSAI’s findings. “The FSAI produced guidelines on how to implement these recommendations,” said a spokesperson. “Minister Reilly will be driving it and will bring in the legislation, if he deems it necessary, at the end of the year.” The report “demonstrates that food businesses currently do not have the expertise or resources to implement and sustain a calorie menu labelling scheme”. How can food service
Londis CEO, Stephen O’Riordan.
businesses possibly comply within such a short timescale? As part of the FSAI’s consultation, almost three in four businesses were in favour of calorie menu labelling in food establishments. However, when considering the technicalities of implementing such a scheme, this fell to 50%. Retail News spoke to foodservice groups who were in favour of calorie count labelling on menus, but were less positive about the technicalities. “Encouraging people to make healthy choices in their lifestyles and diet is an important aim of health policy,” Stephen O’Riordan, CEO of Londis, told Retail News. “Retailers like Londis play our part in offering value and strong promotions on fruit and vegetables, meats, fish and other nutritious products throughout the year. Whilst calorie counting on food service menus is another opportunity to educate people on the health benefits of good food, we must be careful that it does not prove onerous and burdensome for smaller retailers in the current climate.” Malachy Hanberry, Sales & Retail Services Advisory Director at BWG Foods, added: “We concur with the sentiments of the FSAI and we feel strongly that the industry must move together as one under a common framework to ensure a consistent standard for consumers. We appreciate the motivation of the initiative and agree that it will be of benefit to consumers in helping them make more informed
choices about their eating and health – something SPAR fully supports. However, given the size and scale of the task to be undertaken, we feel more time and support is required and the fact there is room for huge variance within and between food businesses means the scheme might also benefit from legislation and enforcement in order that it is fair and thorough.” Deli counters are included as part of the FSAI report. But surely calculating calorie content from self-service buffets and made-to-order sandwiches poses a challenge? “I’d agree with that,” Dr Wayne Anderson of the FSAI told Retail News. “There are areas we need to explore.” Calculating accurate calorie counts could also prove troublesome. Dr Anderson said there would be leeway. “Every packaged foodstuff must have a calorie count, and has done so for years. The calorie count has to be an average. No one expects this to be 100% accurate, but you want people to set it up in a way that’s close and doesn’t mislead the consumer deliberately.” The FSAI’s report recommends the creation of
Seductive Nutrition from Unilever UNILEVER Food Solutions have issued a callto-action to the food service industry: make small changes to your menus and become part of the solution to the growing obesity crisis. With a campaign tagline of ‘Reduce Calories Without Compromise’, Unilever believe that by making smart ingredient choices, reviewing portion sizes and rethinking cooking techniques, chefs and operators can reduce the calorie content of their top-selling dishes without compromising on quality and taste. To help the food service industry bring Seductive Nutrition to life, Unilever’s calorie calculator will be free to download from www.unileverfoodsolutions.ie.
Pictured at the launch of Unilever Food Solutions’ Seductive Nutrition Service at Michelin-starred restaurant, l’Ecrivain, are (l-r): Mark McCarthy, Business Development Chef, Unilever Food Solutions; Jim Reeves, Customer Director, Unilever Food Solutions; Tom Doorley, food writer; Tracey Rogers, Managing Director, Unilever Food Solutions; and Derry Clarke, Chef/proprietor, l’Ecrivain Restaurant
a business support plan “to be prepared by the FSAI and agreed and resourced by the Government to ensure the sustainability of the calorie menu labelling scheme”. Other recommendations include training modules, developed to train food service business staff in calorie menu labelling, and an online software package to help businesses calculate the calorie content of food and beverages. All of these schemes have yet to be completed. “Compliance on technical aspects will cost money and time,” admitted Dr Anderson. “These things came through in the consultation process as being problematic for the industry in compliance. Clearly, we have to try and facilitate in a way that can reduce the time and cost input.” According to the Minister, though, time is not on our side. If the resources aren’t in place, how can the industry possibly comply before Christmas? “We’ll try to bring it on board as fast as we can: you have my word on that,” Dr Anderson continued. “I’ve no idea how long
Dr Wayne Anderson, FSAI. that’s going to take. There are a lot of foodservice businesses who don’t need the support we can provide. There’s nothing stopping the larger chains and companies coming under their own resources. If they all come on board before Christmas, perhaps that will make the Minister make his mind up and we can work on support for the other people. They do not need the FSAI to hold their hand.” The Department of Health is drafting a document on menu calorie counts for discussion at the Special Action Group on Obesity, a department spokesperson told us.
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News
Value the Key Driver in Grocery Sales THE quest for value remains the key driver when it comes to consumer spending decisions in grocery, according to Kantar Worldpanel data. “Since the onset of the recession, the search for value has been at the top of the agenda for households in Ireland,” says David Berry, Commercial Director at Kantar Worldpanel. “The information we collect from shoppers shows that consumer thriftiness has led to a decline in the value of the take home grocery market from over €9.3 billion in 2009 to €8.9 billion in 2012.” Indeed, Kantar figures reveal that the average household now spends €455 on groceries a month, a reduction of more than 10% from peak levels in 2008. While households have responded in differing ways to lower disposable income, there are a number of clear trends which have impacted retailers and suppliers alike. “The most evident of these is the growing importance of discount retailers, with Aldi and Lidl in particular thriving,” notes Berry. “The good value offered and the clear and concise range displayed in store has gained considerable popularity with consumers, to the extent that their combined share of the market has grown from just 6% five years ago David Berry, Commercial to over 11% Director at Kantar today.” Worldpanel.
The rise of own brand continues to be a major factor too. “Branded goods made up 58% of sales in 2007 but this has now dropped to 54%, with the most significant decline of two percentage points occurring in the past year,” Berry explains. “Aldi and Lidl have played a significant role in promoting own labels but we have also seen traditional retailers react to this consumer demand. Tesco has expanded its own brand range and has also increased the value on offer to shoppers throughout the store, particularly within fresh produce. The successful launch by Musgrave of the SuperValu range has also provided a further boost to own brand, with an expanded offering and taste challenges in-store emphasising the quality of products to consumers.” Consumers, according to David Berry, are keen to stay on top of grocery expenditure. “One over-arching trend we are seeing is the desire for consumers to remain in control of what they spend and where they spend it,” he says. The result: 80% of shoppers now say they look around for the best offers when in the supermarket and 78% compare the price of different brands. Controlling the cost of each trip is also evident, with 46% of people shopping to a strict budget and 40% sticking to a shopping list. “This has had a clear impact on the way we shop, with more and more evidence that we will wait until we have used up what is in the fridge before hitting the shops,” Berry states. “Five years ago, shopping trolleys, with goods worth over €100, accounted for 27% of the grocery market’s value. This has now dropped to just 20%, with smaller top-up basket shops, worth less than €30, growing in importance and accounting for 35% of grocery sales - up from 29% five years ago.”
The latest grocery market data published by Kantar Worldpanel in Ireland shows that Irish supermarkets are continuing to capture more of the domestic grocery market at the expense of retailers in Northern Ireland – with their combined share of Irish sales reaching over 88% for the 12 weeks ending June 10, 2012. “The continued high cost of fuel and a weaker euro means that fewer shoppers are willing to travel to the north for their groceries and are instead looking for value at home,” explains David Berry. “During the latest quarter, only 8% of households in Ireland bought their groceries from Sainsbury’s or Asda in Northern Ireland – contrasting with 16% during the same period in 2009.” Overall shopper spending remains subdued as a result of the tough economic climate, with the decline in total grocery sales accelerating from a fall of 0.2% last month to a further drop of 0.5% this month. The discounters continue to increase their combined market share – which now stands at almost 12% – as shoppers look for value. Aldi has recorded sales growth of just over 20% – bringing their total share to 5.3%, just 0.2% behind Superquinn. Lidl has also posted substantial growth and now has a 6.5% share for the first time. Tesco and SuperValu also continue to perform strongly, with sales growth of 2.8% and 1.1% respectively. “Tesco has grown its share by managing to encourage its shoppers back through the doors more often; meanwhile SuperValu’s drive to recruit new customers to its stores seems to be working,” says Berry. Despite grocery sales coming under pressure, Euro 2012 boosted sales of alcohol with sales jumping by 4.4% over the last four weeks of the survey period.
MARKET SHARE - TOTAL GROCERY includes expenditure across Food, Beverages, Alcohol, Household and Health & Beauty categories 12 Weeks to 12 June 2011 % *
12 Weeks to June 2012 % *
% Growth/Decline
Total Outlets
100.0%
100.0%
-0.5%
Total Multiples
87.3%
88.1%
0.3%
Tesco
27.7%
28.6%
2.8%
Dunnes
23.4%
22.4%
-5.0%
SuperValu
19.5%
19.8%
1.1%
Superquinn
6.1%
5.5%
-10.5%
10.7%
11.8%
10.1%
Aldi
4.4%
5.3%
20.4%
Lidl
6.3%
6.5%
2.8%
12.7%
11.9%
-6.3%
Total Discounters
Other Outlets
*= Percentage Share of Total Grocery **= Other Outlets includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers and Cross Border Shops
6|Retail News|July/August 2012|www.retailnews.ie
News NOffLA Calls for Mandatory Training for Alcohol Retailers THE National Off-Licence Association (NOffLA) has called on the Irish Government to introduce a mandatory training programme for all retailers of alcohol. Celebrating the one year anniversary of its innovative e-Learning Responsible Trading Certificate (RTC) training programme, NOffLA has reiterated its call on Government to introduce mandatory training for any retailer of alcohol. “The Government must wake up to this danger,” said Evelyn Jones, Chairperson of NOffLA. “They have nothing
to lose and everything to gain from introducing mandatory training. Other sectors such as building, delicatessen and transport require their staff to be fully trained and the same should apply to alcohol retailers. We simply must ensure that anyone who is in a position of responsibility like this is fully trained and fully aware of the potential dangers they operate in. Therefore, the Government needs to make a stand; they need to deliver a meaningful, national and mandatory training programme.” Jones went on to note how NOffLA believes that “no person
Evelyn Jones, Chairperson of NOffLA. should sell alcohol unless they have been adequately trained”. “Training staff to be responsible retailers is an integral part of our moral obligation to society at large and the communities we operate in,” she said.
Since 2011, NOffLA has trained 269 employees from various off-licences across Ireland though their e-Learning programme. Over 1,000 have been trained in total since their original training programme was launched.
Renewed Organic Focus THE inaugural meeting of Organic Focus, the new national group which aims to drive the development of the organic sector in Ireland, took place recently. The group is made up of representatives of the Department of Agriculature, Food and the Marine, Teagasc and Bord Bia, as well as stakeholders from across the spectrum of the organic sector including meat, dairy, poultry, horticulture, cereals and aquaculture. Addressing the meeting, Shane McEntee TD, Minister of State at the Department of Agriculture, Food and the Marine, stated that he hoped that the inaugural meeting marked the start of a new phase in the development of the Sector throughout Ireland. “While there are challenges, if the focus is on identifying solutions where possible and developing strategies to achieve progress, the potential that exists can be realised for the benefit of all,” he said. At the end of 2011 the estimated value of the Irish Organic market in 2011 was €100m, with 1,721 organic operators in Ireland and 52,390 hectares of land under organic production methods.
Shane McEntee TD, Minister of State at the Department of Agriculture, Food and the Marine, is pictured at the inaugural meeting of Organic Focus, with Pauric Connelly, Dan Clavin, Mel O’Rourke, John Flahavan, John Purcell, Lorcan Bourke, John Paul Crowe, Peter Young, Cait Curran, and Brigitta Curtin.
Bord Gáis Signs Landmark Deal with Siemens
Dave Kirwan, Managing Director, Bord Gáis Energy, and Paul Lynam, CEO, Siemens Ireland, at the Energy Ireland Conference 2012 at Croke Park, Dublin.
BORD Gáis Energy has announced a partnership with Siemens Ireland that will allow Irish businesses, including those in the food and drinks industry, to avail of a full, end-to-end energy efficiency service for the first time. The two brands will combine their extensive expertise to the benefit of Irish companies looking to increase energy efficiency and reduce energy consumption. The initial deal between the two companies is for three years, but it is being viewed as a long-term strategic partnership that will benefit customers now and in the
future. By combining their respective expertise and experience, Bord Gáis Energy and Siemens expect to deliver significant benefits for client companies to help them implement energy savings of up to 20%. Siemens and BGE will develop a tailored solution to a company’s specific needs and investment capability, which can be paid for by the savings made in energy spend within the first few years. The significant advantage of this service is that Bord Gáis Energy and Siemens can tell a customer how much they can save before they ever spend a cent.
“The energy market in Ireland has become one of the most competitive in the world and we are constantly looking for innovative ways to differentiate ourselves from competitors,” said Dave Kirwan, MD of Bord Gáis Energy. “This partnership extends the products and solutions that we can offer our business customers and, in turn, add value to their bottom line and competitiveness.” The new service will initially target high energy users in the industrial and commercial sector and will be rolled out to SMEs over the following 12 months.
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News
IPSO Warns of Credit Card Scam THE Irish Payment Services Organisation (IPSO) is warning retailers about a credit/debit card scam, which has already cost some retailers thousands of euro. The scam involves someone phoning shops and purporting to be an engineer from their acquiring processor, naming the merchant acquirer and claiming to be a manager. Indeed, the individual is very familiar with the shop’s tills and terminals. The caller advises the shop staff that he needs to check something on their terminal and asks them to put through some refunds to
a ‘dummy’ card, assuring them that the refunds won’t actually go through. The shop assistant then puts through the refunds, assuming they are just test transactions and are then told by the caller to shred or dispose of the receipts as they are no longer needed. Some shops have reported losing up to €14,000 in this way, with most of the refunds being around €2,000-€3,000, according to IPSO. IPSO advises shop staff to hang up if they receive a call claiming to be from their
merchant acquirer and to then phone back their card processor on the phone number they know to be correct, from their bank statement or phone book. Shops that are contacted by the scammer should report the call to their local Garda Station and to their merchant acquirer. IPSO and the Garda Bureau of Fraud Investigations (GBFI) are working together with the merchant acquirers to investigate this matter. Updates on the scam are provided through the IPSO www.safecard.ie website.
Centra Offers Contactless Technology ROSE Hally of Bank of Ireland is pictured with Paul and Kay Ryan at Centra Clonroadmore in Ennis, the first Centra store in Ireland to offer Visa contactless technology to customers. The technology, which will be rolled out across the Centra Network of 458 stores in partnership with Visa, will enable customers to take advantage of shorter queues and faster transactions. The contactless technology allows customers to hold their card over the point of sale card reader to make payments up to €15 without needing to enter a Personal Identification Number (PIN) code, thus ensuring faster transactions for both the customer and retailer.
Collateral Cost for Retailers Over Ulster Bank Meltdown AS Ulster Bank count the cost of the technical glitch that led to tens of thousands of customers being unable to access their accounts, retailers are assessing possible long-term damage to their businesses. Ulster Bank pledged to pick up the tab for extra costs and referral charges incurred from the technical fault. Retailers with accounts in other banks, relying on payments from Ulster Bank customers, may not be so lucky. “Because the money didn’t come in from their customers, they went into unauthorised overdrafts,” Mark Fielding, CEO of Irish Small and Medium Enterprises Association (ISME) told Retail News. “They are going to have black tics against their credit history. They will be hit for penalty interest and surcharges by their own banks, AIB or Bank of Ireland, who are not interested in why they went overdrawn.” However, Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), feels Irish creditors were understandable during the crisis. “If we bounce a direct debit to someone like the National Lottery, and if it this is an unusual occurrence, the suppliers wouldn’t have a big difficulty about it. We’re all in business and no one is going to pull the plug,” he said. Mark Fielding, CEO of ISME.
Location, Location, Location? THE Consortium for Common Food Names (CCFN) has welcomed clarification made by the European Commission (EC) in a recent statement that the terms mozzarella, brie, gouda, edam and cheddar are generic, and will not be confiscated solely for the use by certain European producers, a fate that other widely used cheese names such as Feta and Parmesan have already suffered in the European Union. This clarity is a welcome development for producers of these products around the world, says CCFN Executive Director Jaime Castaneda. However, that clarification is just the tip of the iceberg on what CCFN believes is needed from the EC: “We hope the EC will extend that reasonable assessment to other generic names as well such as havarti, parmesan, prosciutto, provolone, salami and to commonly used adjectives such as fine and vintage on wine labels. “One of the problems with the EC system is its arbitrariness. Unless the system explicitly designates a term as generic, we have to assume the scope of protection is extremely broad,” said Castaneda, who called for the development of a clear and reasonable scope of protection for geographical indications.
8|Retail News|July/August 2012|www.retailnews.ie
News Business Costs Behind High Prices in Ireland ALCOHOL and tobacco is more expensive to buy in Ireland than any other European country, a new report has revealed. The Eurostat survey found that alcohol and cigarettes are 63% more expensive than the EU average, while food and non-alcoholic drinks are 18% more expensive. “High excise duties and a 23% VAT rate have a huge impact,” Paul Kelly, Director, Food and Drink Industry Ireland (FDII) told Retail News. The country’s high wage rates and transport costs are also to blame, added Vincent Jennings, CSNA: “I’m not sure there is any excessive profit taking in any of the industries nowadays. The consumer is now driving the pricing of products throughout a wide range. Competition is there on a daily basis. Most business costs are state-ordained. Regulatory compliance, wages, extraordinarily high rents: these all combine to make Ireland an expensive place to do business.”
First Contactless Payments at BWG Stores
Keynote Speakers Announced for SHOP 2012
Bobby Kerr, Chairman of Insomnia and star of Dragon’s Den, is one of the keynote industry speakers at SHOP 2012. THE line-up of keynote industry speakers for this year’s SHOP exhibition, taking place from September 25-27 at the RDS Simmonscourt, has been announced. Taking place over the three days, the SHOP Retail Forum will allow visitors to listen to free inspirational seminars from some of Ireland’s most notable businesspeople, including Insomnia’s Chairman and current Dragon, Bobby Kerr,
and Image Businesswoman of the Year, Vicki O’Toole from O’Toole Packaging in Limerick. On opening day, Retail Ireland Director, Stephen Lynam, will speak on ‘Advancing Our Industry’, covering how the retail industry should strategically promote growth through advocacy of sensible regulation and retailer-friendly policies, and how to drive demand and get consumers spending again. The presentations also include global insights from IO Research (September 26) and Bord Bia (September 27), featuring the latest consumer insight and trends in retail. Completing the line-up will be some of Ireland’s most-heralded food producers, who will be sharing their experiences and opportunities with visitors. Director of McEvoy Family Foods and former candidate on BBC1’s The Apprentice, Jane McEvoy will feature on the afternoon of the final day of the show, with Cherry Blossom Bakery, Aruna Sauces and Kookie Dough all joining the Retail Forum platform. To secure space at SHOP 2012, contact Caroline McGuinness on 01 9036060 or email Caroline.McGuinness@ easyFairs.com. For full event information or to register for free entry, visit www.easyFairs.com/SHOP.
Pictured at Brady’s SPAR Mulhuddart, Dublin 15, are Seamus McHugh, Marketing Manager at CBE, and Veronica Sullivan, Head of IT at BWG Foods.
BWG Foods, in conjunction with its technology partner CBE, has announced its very fist SPAR, EUROSPAR, and MACE stores around the country have started accepting contactless payments – where shoppers simply wave their contactless enabled card in front of the terminal and pay in less than a second for transactions up to €15. Brady’s SPAR Mulhuddart in Dublin 15, Brogan’s EuroSPAR Belmullet in Mayo and Talty’s MACE Ennis in Clare are pioneering the launch of contactless for each respective brand. “We are delighted that these three stores are representing SPAR, EUROSPAR and MACE to pioneer the latest method of contactless payment which we foresee as being hugely popular in this increasingly cashless and technology-enabled society,” said Veronica Sullivan, Head of IT at BWG Foods. “Contactless payment is a perfect fit for convenience shopping as customers will benefit directly from being able to make faster and easier payments, at no extra cost. I congratulate the stores for leading the way in this next evolution of shopping and we look forward to rolling this out across our brand estate in coming months.” Seamus McHugh, Marketing Manager at CBE added: “Over 80% of transactions in convenience stores are under €15, so the potential for this new technology within the sector is enormous. CBE have been at the forefront of developing Contactless Technology for the Irish market and these installations will be the first of many, as BWG Foods retailers throughout the country gear up for the imminent launch of Contactless cards by all of the major banks”.
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News
Londis Launches Centralised Chilled Distribution ADM Londis plc has successfully launched its Centralised Chilled Distribution facility, as mentioned in last month’s Retail News, which sees the group’s 250 retailers placing their chilled orders directly with ADM Londis through the iSIS web platform and receiving these products in a timely and efficient single delivery, marking a major strategic shift for the group and its retailers. Central to this programme is the completion of a €20m partnership agreement with warehousing and logistic experts Norbert Dentressangle. “This first phase of the Group’s Centralised Chill project incorporates over 780 product lines, replacing 40 individual supplier deliveries with one,” explained Claude Tonna Barthet, Group Operations Director, ADM Londis plc. “The entire operation is reliant on a very fluid process, from placement of orders by retailers to suppliers delivering into our chilled warehouse in Swords, concluding with products being picked, dispatched and delivered to our retailers, all within a three-day timeframe. Despite the complexity of the entire solution, we are delighted to have experienced a very smooth launch with excellent feedback from our retailers.” The move brings significant benefits to Londis retailers, including: • Service levels in excess of 96%, resulting in improved product availability and a significant reduction in out-of-stocks; • Increased product shelf life, leading to reduced wastage; • The reduction of 40 supplier deliveries into one consolidated delivery; • Cost reductions on key lines; • Increased retail margins; • A consistent and highly competitive offering; • Enhanced own label range and offering; • Significant in store efficiencies and operational savings. The advent of centralised chilled distribution at Londis marks a significant opportunity for grocery suppliers, who previously were unable to branch out nationwide, due to high distribution costs,
Marking the launch of ADM Londis’ Centralised Chill facility at the Swords based warehouse are (l-r): Claude Tonna Barthet, Customer Operations Director, ADM Londis plc; Stephen O’Riordan, CEO, ADM Londis plc; and Mark Boulton, Director, Norbert Dentressangle Logistics Ireland. but now have access to a nationwide retail network via the Londis centralised chilled distribution facility. Amongst the suppliers already signed up in phase 1 are: O’Brien Fine Foods from Offaly, who supply the Brady Ham and Rudd Fine Foods brands; Nestbox, suppliers of commercial and free range eggs from Monaghan; William Carr Seafood from Killala, Co. Mayo; Waldron Meats, a family owned pork and bacon supplier from Brideswell, Roscommon; and Dublin craft bakery Tea Time Express. Describing the move as “the culmination of a two year development project with Norbert Dentressangle and with our chilled suppliers, who have provided great support to the project”, Londis CEO, Stephen O’Riordan stated that its launch has been a huge success, with volumes already significantly ahead of forecast. “Up to now, some stores have been at the mercy of a fractured chilled supply chain, hampering supply of leading brands,”
he noted. “Our centralised chilled solution addresses these concerns for stores and in many instances, Londis consumers now enjoy greater choice and availability with popular regional brands enjoying nationwide distribution... As this project evolves even further and our product range and supplier base expand, Londis retailers and consumers will reap even greater rewards.” Londis retailers have welcomed the initiative, with retailer Seamus Kelly extolling the benefits of dealing with one invoice per week, instead of up to 30. “My consumers have commented on the wider range I now have access to and I’m delighted with the value I can offer, with excellent pricing and promotional activity,” Kelly says. “Given the pressure on retail margins throughout the industry, it’s great to be a part of something which I believe will drive sales, earn a sustainable level of margin, and reduce costs in my business.”
10|Retail News|July/August 2012|www.retailnews.ie
Industry News New Look Gala in Ballyroan
RAY and Eilish Ryan officially launched their new look Gala convenience store in Ballyroan, Portlaoise, recently. A fantastic family barbecue, free goodie bags for children and Adrian Brereton’s famous Animal Show, direct from RTÉ’s Operation Transformation, had locals queuing up to help celebrate the grand opening. The latest refurbishment of the store sees the introduction of the new Baker’s Corner concept to the popular 1,200 square feet convenience store, which opens seven days a week, has an excellent full service post office, Bank of Ireland ATM and is an agent of Abbeyleix’s Credit Union. Pictured are (l-r): Mike Browne, Gala Regional Manager, Eilish and Ray Ryan, store owners.
Superquinn Welcomes New Potatoes SUPERQUINN has announced the arrival of new season Irish Queens potatoes which are now available in all Superquinn stores. The delicious Irish potatoes, grown by Peter Keogh & Sons for Superquinn, are picked at 6am and on-shelves by midday of the same day, guaranteeing unbeatable freshness. Well-known for its support of local producers, Superquinn and Peter Keogh & Sons have enjoyed a long and successful partnership since the 1960s. Keoghs provide Superquinn fresh produce from their farm in Oldtown, north County Dublin, where they have been managing every step in the growing process for over 200 years. Calum Tilly and Clodagh Kane, both aged seven, are pictured at the arrival of the first delivery of new Irish Queens potatoes at Superquinn Swords.
Can You Help the Food Bank? THE Crosscare Food Bank can collect full or part pallets of slightly damaged or surplus food,drink and household goods, which are then distributed to over 50 charities, including St. Vincent de Paul, helping to feed the poor and needy in our society. The Food Bank has come under increasing pressure to maintain supplies due to the dramatic increase in the number of people needing help to feed their families. “Kellogg’s supply us on a regular basis and have recently sponsored a new delivery van,” said Robbie Burns, Crosscare Food Bank. “The essential work of Crosscare would not be possible without the continued support of our partners. Last year alone, we collected over 600 tonnes of surplus food and grocery products from manufacturers, retailers and distributors.” Crosscare staff Derek Balmaine and Shay Doyle are pictured with Tony the Tiger and the new Kellogg’s sponsored delivery van. Crosscare are appealing to manufacturers and distributors for staple goods such as pasta, rice, tinned vegetables, fruit juices and soft drinks. If you can help, contact Crosscare on 01 8365040.
MACE on the Ball
MACE recently kitted out for an 11-a-side charity tournament at Richmond Park in Dublin, home to St Patrick’s Athletic, for the ‘Steven Gerrard & Keith Duffy Charity Weekend’ sponsored by MACE, in aid of the Irish charity Irish Autism Action. MACE recently announced Irish Autism Action (IAA) as its official charity partner for 2012/2013 in which the community store network has set a fundraising target of €100,000. This is the first time MACE has formally partnered with a charity at national level, in which the proceeds of its various fundraising efforts at national and local level will go towards helping the Irish organisation carry out its important work. Liverpool and England captain Steven Gerrard is pictured with the MACE team.
IGBF Holes a Winner OVER €12,000 was raised at the Connacht Gold North West Region Irish Groceries Benevolent Fund Charity Golf Classic at Westport Golf Club recently. The event was won by the Robert Roberts team and all funds raised will be distributed amongst 60 families in the region who, through illness, accident or business failure, find themselves in difficult financial circumstances. Pictured at the presentation are Padraig Gibbons (4th left),Copnnacht Gold Chairman, competition sponsors, presenting the cheque to Gearoid Surlis, IGBF, and committee members Ray Darcy, SuperValu Ballyhaunis; Seamus Hannon, Connacht Gold; Richard Lennon, Ballina; Dermot Ruddy, Westport; Gerry Munnally, Sligo; and Liam Campion, manager, SuperValu Westport.
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Industry News Oceans Of Opportunity BORD Iascaigh Mhara (BIM), the Irish Sea Fisheries Board and University College Cork (UCC) have joined forces to drive sustainable innovation in the marine sector by developing the first ever Diploma in Seafood Innovation. This new part-time course will commence next October to improve the skills of those who work in the industry and it includes training and education in Research and Development, Innovation and Entrepreneurship. Each module has been designed to provide practical applied learning in new product development, with each participant expected to develop new innovative products to bring to market. Pictured are: Dr Susan Steele, Innovation Coordinator, Seafood Development Centre, BIM; Martin Shanahan, Fishy Fishy Restaurant, Kinsale; and Dr Joe Kerry, School of Food and Nutritional Sciences, UCC.
Musgrave Triathlon to Top €250k MUSGRAVE have announced that their annual Triathlon, which to date has raised €3.1m in aid of the Irish Cancer Society, Our Lady’s Children’s Hospital, Crumlin, and Breakthrough Cancer Research, will take place in Farran Woods, Farran, Co. Cork, on Saturday September 1. Musgrave staff, Nicola O’Halloran, Stephanie Fitzgerald and Edelle Bruton joined in the launch to help the Triathlon, now in its eleventh year, meet its 2012 fundraising target of a staggering €250,000 through this one-day event. The triathlon attracts over 500 participants every year and involves an 800m swim, followed by a 33km cycle and a 10km run. Entry forms and advanced training schedules can be downloaded from www.musgrave-triathlon.com or by contacting Musgrave Retail Partners Ireland on 021 480 3000.
Jamie ‘PUTTS’ BUSHMILLS FIRST
Bord Bia Sustainability Development Programme BORD Bia announced plans for a comprehensive national sustainability development programme to more than 120 food and drink industry leaders during its recent Pathways for Growth Food and Drink Leadership Summit, which took place in the UCD Michael Smurfit School of Business. Bord Bia believes the programme, entitled ‘Origin Green’, will help Ireland become a world leader in sustainably produced food and drink. The programme will build on existing work being undertaken at primary production level and it is intended that a target of 75% of Irish food and drink exports will be sourced from signed-up members to the programme before the end of 2014, and 100% by the end of 2016. Taoiseach Enda Kenny is pictured delivering the closing address at the Bord Bia Pathways for Growth Food and Drink Leadership Summit.
JAMIE Donaldson is pictured being awarded the freedom of the Old Bushmills Distillery by Bushmills Master Distiller, Colum Egan. The Welshman was given the accolade after winning the 2012 Irish Open at Royal Portrush Golf Club. The award means that he will have access to a special bottle of Bushmills Irish Whiskey, housed in a bespoke cabinet, handmade from oak used in the whiskey making process. The bottle will have pride-of-place in the Old Bushmills Distillery and will only ever be opened for Jamie Donaldson himself. Bushmills Irish Whiskey was the official whiskey of the 2012 Irish Open and had exclusive whiskey pouring rights at the tournament.
Homestead Helps to ‘Fix Crumlin’ HOMESTEAD Brands Ltd has presented a cheque for €25,000 in support of Crumlin Hospital’s urgent ‘Fix Crumlin’ Appeal. Pictured at the presentation are (l-r): Joe Quinsey, CEO of the Children’s Medical & Research Foundation; Janice Gibney, Homestead Brand Manager; Tom Shipsey, CEO of Stonehouse Marketing; five-year-old Catriona Purcell from Carlow; and nine-year-old twins Muireann and Niamh Ryan from Tipperary. Muireann and Catriona are Cardiac patients at Our Lady’s Children’s Hospital, Crumlin, and have seen first-hand the need for resources to match the world class care they receive.
RETAILERS DISCOVERING THE BUSINESS BENEFITS OF HP RETAIL PHOTO SOLUTIONS Ireland’s grocery retailers could stand to benefit from opportunities in the growing retail photo publishing market, estimated to be worth €56 billion by 2013. (1) Retailers all over Ireland are discovering that in-store retail publishing transactions can provide attractive margins while also driving footfall in stores. As people’s attitudes and use of technology has evolved so has the way they share and record their memories. Children are using digital technology from a younger age and the shift in trends has resulted in digital content doubling every 12 to 18 months, and consumers are now looking for unique, creative ways to preserve this content – their memories – in a traditional, tactile manner. This shift represents a significant opportunity for Irish retailers with research from InfoTrends anticipating a Compound Annual Growth Rate (CAGR) of 5.6% in the Western European photo merchandise market, growing from 141 million units in 2010 to 212 million by 2015. (2) The Retail Publishing Solutions offering allows users to create their own personalised photo products in-store, on demand and within the hour. Products such as photobooks, double sided calendars, posters, greeting cards and other creative photo merchandise can all be produced using the HP system.
By simply downloading the HP Photo creations app, the free editing software, from printmyphotos. ie, users can edit and customise photobooks, calendars and a vast array of creative products. Once completed the finished product can be collected from a local provider at the user’s convenience or delivered if preferred. Comfortable, secure, shopping experience Commenting on the new technology, Gerry O’Riordan, HP RPS Product Manager, Hahnel Industries, explained why he believes the photo merchandise business is becoming increasingly important now and will continue to do so in the future.
Supplied through Irish distributor Hahnel Industries, the HP Photo Center is the award winning combination of hardware and software of HP’s Retail Publishing Solutions. It allows users to create their own personalised photo products in-store, on demand and within the hour. It is fully interactive and simple to use, and customers can quickly and easily input their photos directly from CD, DVD, SD Cards, memory sticks and phones. It is also possible to use the system to scan old photos and bring them to life in exciting formats, and exceptional quality.
“We are seeing a national increase in the volume of images being taken on digital cameras and people are looking for a creative way to reproduce these memories that will stand the test of time. We have supplied HP Retail Photo Solutions to retailers all over the country, all of whom have seen a measurable positive impact on their business. The products attract a high margin and retailers that have implemented the retail publishing approach are experiencing significantly better than industry average year-over-year growth, by as much as 60 to 70 percent depending on the product. We have also found that within a period of three years, not only will the hardware have paid for itself but will already have moved into a substantial profit-making situation.”
With 2 billion people using the internet and 150 million images on Facebook alone, the RPS offering also has a strong online component and a process that drives customers to store. With ever increasing numbers of people saving content on PC, HP’s Home Client allows customers to order their products online, whenever they want, and collect them in under 1 hour in the store.
“The value lies not only in the desire for these products, but the willingness to pay for them, as reflected in the 17% growth of the photo-merchandise market in 2010 in Western Europe to reach €422 million. Of this, the fastest growing segments, canvas prints and cards, saw up to 80% and 50% growth respectively in some markets in 2010.(3)”
“As well as being a high margin foot fall driver, HP’s inkjet-based Minilab uses less power and space, no water, is much easier to operate, does not require chemical process stability, and can be used in locations you would not want a chemical system, for example close to food. On top of this, with this HP solution retailers need not worry about waste: HP’s Planet Partner Programme collects empty ink cartridges – so there is no need to store used chemicals that require careful recycling” commented O’Riordan. Álvaro van der Eijk, EMEA Market Manager for HP Retail Publishing Solutions states that “time is an invaluable commodity and with the increased popularity of smart phones and tablets the general population has an expectation of quick delivery and ‘waiting’ is no longer as acceptable as it was previously. To keep up with this attitude shift the photo retail industry has adapted as necessary, providing photo development in minutes, as opposed to days, and ensuring that retailers have the necessary information on hand to enable quick decisions. In line with this, HP has developed RPS products such as the HP Instant Print Solutions and the HP Photosmart ML2000D Minilab Printer which is able to produce over 10,000 products in a matter of minutes with only a few quick and easy steps. The ease of use of all HP RPS products contributes to this speedy delivery and the increased preference amongst both retailers and end-users for HP”. For further information on the HP RPS offering, please contact:
Hahnel Industries Parnell Street, Bandon, Co. Cork Email: info@hahnel.ie Tel: 00 353 23 8841606 Fax: 00 353 23 8844963 www.hahnel.ie (1) Source: Retail Publishing Solutions; HP analysis (2) InfoTrends 2010 Western Europe Photo Merchandise Forecast (3) Futuresource, Photo-Merchandise Market Report: Western Europe, May 2011 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
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Retail News Interview In his first interview since taking the reins of PJ Carroll last year, Steven Donaldson talks about how to tackle the illicit trade, the changing tobacco consumer and how we need to alter the way we think about tobacco control.
Steven Donaldson, General Manager, PJ Carroll.
Steven’s Day PJ Carroll has been operating in Ireland for almost 200 years. It was 1824 when Patrick James Carroll set up his first tobacco shop in Dundalk, Co. Louth, and the intervening decades have seen the company grow to become one of Ireland’s best known companies. General Manager Steven Donaldson has been part of PJ Carroll since the end of the last century, and indeed, has spent his entire working life with the company, having began providing holiday cover in the despatch department, before going on to work as a marketing intern during his college days “I’ve pretty much done most roles in the business at this stage,” he smiles. The majority of Steven’s time with PJ Carroll, and its parent company,
British American Tobacco (BAT), has been spent in the areas of sales and marketing, including managing marketing teams in Ireland, the UK and Switzerland (“getting to see other tobacco markets and how they contrast with the Irish market was very interesting”). March 2011 saw Steven return to Ireland to take up the role of General Manager at PJ Carroll, a mere week before the company conference, which he refers to as a “baptism of fire”. Now, however, the GM can look back on his first 16 months in charge with a degree of satisfaction. “The environment is tough but the business has performed well,” he smiles. “There has been a lot of change
in market dynamics, consumer-wise, and we have been able to capitalise on that with some of our brands.” While admitting that the corporate and regulatory affairs side of the business provided a steep learning curve, Steven, who is also serving as Chairman of ITMAC (The Irish Tobacco Manufacturers’ Advisory Committee), has relished the opportunity to “work with political stake-holders, work with key Government agencies, getting them to understand the problems facing the industry at the moment.”
The ‘R’ Factor
Part of the BAT family since 1998, Steven sees PJ Carroll adopting a
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Retail News Interview us is that not everyone is fully aligned. Last year, the Department of Social Protection came on board, as we start to see the connection between people who are claiming social welfare benefits but at the same time, are making a living by selling smuggled cigarettes. But the Departments of Justice and even Health themselves need to have wider accountability for the issue of illicit trade. Only by getting all of these people around a table all at once, having all that expertise in one room, can we formulate a plan to address the illicit trade on the supply and demand side.”
Counting the Cost
Consumers don’t realise the impact to society of buying the odd pack of smuggled cigarettes, he maintains. Indeed, the illicit trade is directly costing the exchequer €500m in excise and VAT. “There is a big anti-tax sentiment out there,” Steven stresses. “We saw a very strong message being sent to Government with the household charge. But the loss in revenue to the exchequer as a direct result of the illicit tobacco trade, €500m, equates to about €300 per household in Ireland. That is €500m walking out the door every year. Do consumers make that connection when they buy illicit cigarettes?” Smuggling and the illicit trade also costing jobs in the retail sector. “There are 260,000 people employed in retail and wholesale, and 130,000 in convenience retail, but those levels would be significantly higher if we didn’t have the problem we have with illicit trade,” Steven says. While admitting that Ireland’s illegal cigarette trade is difficult to measure, the latest figures from PJ Carroll estimate that the illicit trade could make up as much as 30% of the market now, having dropped slightly last year. “In the space of one month, between VAT and excise increases, we had a 45c jump in the price of a pack of cigarettes, which created a shock in consumer behaviour, and resulted in so many consumers moving to cheaper brands, to RYO and, unfortunately, to the illicit trade. In the period
The latest figures from PJ Carroll estimate that the illicit trade account for as much as 30% of the market now, having dropped slightly last year.
unique role within the organisation. “Ireland is one of the most antitobacco countries in the world and this could be the future for many other countries in which BAT operates,” he states. “We are a relatively small market when compared to some of the other areas where BAT operate, but we are in many ways a perfect case study in what is working and what isn’t in terms of growing brands and understanding consumers and their behavioural changes when new regulations, such as the display ban or the ban on smoking in the workplace, were introduced.” And there it is: regulation. The key driver of change in Ireland’s tobacco market, and the reason why Ireland’s tobacco market in 2012 is vastly different than the same market in 2007 and will be altered again by 2014. “You have to be adaptive to regulation,” Steven insists. “The challenge is to try to make sure that any regulation being considered is balanced and evidence-based, and that it takes into account the wider implications of its impact. There have been a lot of unforeseen consequences of legislation and policies that we have adopted over the last ten years that weren’t thought through or anticipated. There is a very strong tobacco control lobby in Ireland and it seems that measure after measure is being introduced, with the aim of affecting smoking rates, but the
latest Euromonitor figures tell us that smoking rates in Ireland remain at 29%, which is relatively unchanged over the last decade. So policy making is not changing the amount of people who smoke. If regulation is pragmatic and balanced, we will get on board and implement it, but if it’s not, we need to challenge it as strongly as possible by ensuring that everyone who is being affected, including the regulators and policy makers, understand what the real impact of the regulation will be.” The advent of the display ban in 2009 is a case in point, with tobacco manufacturers and retailers warning Government that the move to ban the display of tobacco products in-store would not reduce smoking rates but would push more consumers into the illicit trade. The Government ignored the warnings and yet everything has come to pass just as was predicted: smoking rates remain steady, while the illicit trade is booming. I put it to Steven that this scenario, while not unusual, must be highly frustrating. “It is,” he admits, “but at the same time, progress has been made and continues to be made, particularly in terms of Revenue & Customs, who seized €109m of illicit tobacco last year and €54m so far this year. They are making inroads with their three year strategy but they need more resources and support from other departments. The biggest issue for
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Retail News Interview up to 2011, cigarette manufacture was declining by 3-4% per year. The latest price increases have seen manufacturing drop by 9%, while the illicit trade has grown to over 30% of the market: there is an obvious connection between these facts.”
Increased Resources for Revenue
If more resources were allocated to the Revenue Commissioners, the GM feels that the investment would pay for itself immediately. More importantly, the money is there: “We contribute to a co-operation fund in the EU on tackling the illicit trade. Ireland is one of the worst countries hit by the illicit trade in the entire EU, so I think we should be able to draw down a higher proportion of that fund. There is a big pot of money there in the EU: we just have to fight for it. If we increase manpower, we can increase detection. At the moment, you have HSE inspectors ensuring that retailers are compliant with the display ban and how tobacco products are sold, while across the road, there is a market where people are selling illegal tobacco and cigarettes in plain view. We need to try to ensure that is being tackled.” Steven feels that retailers the length and breadth of the country need to become more vocal to tackle the issue: “Some retailers are very active, but others are just busy surviving. We need them to get vocal too, because every time a packet of illicit cigarettes is sold, it is like somebody reaching into your till and taking that money from you, along with all the ancillary purchases that would have been made. Retailers need that business and they need to call the Revenue hotline (1800 295 295) to tell them what is happening. Revenue are keen to act on all information.” While welcoming the recent case in Limerick where a career criminal was jailed for two years for illegal cigarette selling, Steven feels that overall, the deterrent is not sufficient, with an average fine of less than €1,900, compared to the massive sums that can be made in profit: “There is a lot of evidence that criminal gangs who were involved in the trade and supply of Class A drugs have now moved to illicit cigarette smuggling and yet, the approach taken by our justice system to the illicit tobacco trade is vastly different to that of hard drug smugglers. A minimum mandatory fine or a minimum sentence would help to create more of a deterrent for
Maximising Returns from the Tobacco Category PJ CARROLL works very closely with its retail partners on maximising the return from the tobacco category, which is a very different sector than even just 12 months ago. “The tobacco industry was traditionally a relatively stable industry, but now, innovation has sped up considerably and I see a lot more innovations being introduced in the coming months and years,” states Steven Donaldson. “Now that the industry is moving so fast, the key is to keep in touch with those trends and changes. Some companies and some brands offer better margins, even in the value segment, and because brand loyalty is not as strong as it once was, there is an opportunity, within the confines of what you can communicate, to maximise the margin for retailers and how much cash is being tied up by the category overall. When excise and VAT levels rose so fast, a lot of retailers were concerned that more of their cashflow was being tied up in cigarettes, without a corresponding rise in margin. If you can make more margin and tie up less cash by selling certain brands, that can make a huge difference to your bottom line.” Curbing the illicit trade would make arguably the biggest difference of all to the sector, however. “If we can bring the illicit trade back to the levels of just a decade ago, when it stood at around 6% of the market, it could create an additional 8,00010,000 jobs for the retail sector and bring a hell of a lot more money through the tills, and would raise an additional €400-500m for the Government through VAT and excise.” Studies estimate that every tobacco consumer spends between €5-7, in addition to their tobacco spend, each time they visit your store. That means every smoker gained from the illicit trade could mean as much as an extra €112 per week into your tills every week. “More than one in four smokers in Ireland are not buying their cigarettes in your stores each week,” Steven notes. “If we get them back through the doors of legitimate retailers, it could make the difference between some retailers staying open and being forced to close.”
people before they become involved in this.”
Changing Market
The continued rise in cigarette prices and the downturn in the economy has seen the cigarette and tobacco market changing considerably, with more and more consumers seeking out a value option, whether that be a value cigarette brand or moving to the area of Roll-Your-Own (RYO). “In 2009, only about 2% of smokers would switch brands in a given year. In the first five months of this year, we have already seen 60,000 smokers (approximately 6%) switching brands,” Steven explains. “They are switching for format, for price, for innovation and for new brand launches. That was unheard of just a few years ago. How consumers decide on their cigarette brands, based on quality and value, has changed completely.” This brings added challenges, but also opportunities for retailers, according to Steven. “Any retailer will tell you that the most important thing is knowing your customer and what they want. It is the same thing with tobacco, and it has become a little more difficult to make sure you have the right stock level, the right
availability of these brands which have become much bigger and more popular very quickly. For example, Pall Mall has been the fastest growing brand in the Irish tobacco market this year. You have had the introduction of capsule technology to the market, which has got traction very quickly. RYO is up by 24% and the value sector continues to grow. That is the consumer saying that they need choices, rather than switching to the illicit trade. You need to make sure that you have the right range and availability, that you’re not just taking a historic stock level that could be very out-of-date now.” Another change in smoking behaviour, according to Steven, sees some consumers smoking different brands mid-week to those they smoke at the weekend: “For retailers, that means the range they might carry at the weekend could be different to that of mid-week, so they need to check and replenish stock accordingly.”
Pictorial Warnings
February 2014 sees the next big change in the tobacco sector in Ireland, when all tobacco products sold in Ireland will have to have a graphic health warning on-pack. From a manufacturing point of
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Retail News Interview
“
We’re becoming a bit of a basketcase, regulation wise, compared to the rest of Europe. At what point do we say, ‘this is not working? We need to think differently about this problem’. We need to change the way we think about the tobacco control agenda.
”
view, all products entering the market from February 1, 2013, will have to include a graphic health warning. In other words, there is a period of one year for the changeover, which Steven feels is manageable. “From the end of this year and the start of next year, you will start to see more and more lines entering the market with pictorial health warnings,” he says, “despite the fact that there is no strong evidence to say that pictorial warnings will have any effect on youth smoking. As a company, we firmly believe that people understand the risks they
are taking with smoking from the existing, written warnings and that the pictorial warnings do not add any further understanding of what the risks are. That said, pictorial warnings are coming and PJ Carroll will be compliant and will communicate with our retailers about the process.” Recent months have seen rumours abound that Governments here and in the UK may be considering new legislation to introduce plain packaging for all cigarettes and tobacco products, such as that being introduced in Australia this year, effectively making each brand
The Irish Brands WITH the tobacco market becoming so international, how difficult is it for PJ Carroll’s Irish brands, like Carroll’s and Major, to perform against international super-brands? “We’re very proud to have two Irish icons like Carroll’s and Major in our portfolio: they are great brands and brands very close to my heart,” says Steven. “Both brands have proved very robust, market share-wise. In the current climate, there is a big trend of consumers buying Irish and that has benefited Carroll’s and Major too, as they are distinctly Irish and have an Irish character and flavour.”
unidentifiable from its rivals. “As a company and as an industry, we are completely opposed to that,” Steven stresses. “The main objective behind it is to positively reduce youth smoking rates and there has been no strong evidence to indicate that is what plain packaging does. There is also a huge debate happening in the UK at the moment about plain packaging, because if it were to be introduced, it will damage brands and our rights to sell our brands in particular formats. There is a huge issue relating to trade-marks and intellectual property rights.” Steven also feels that any move to plain packaging would only fuel growth in the illicit trade, due to the ease of replicating plain packs compared to their branded counterparts, while it also could make non-Irish duty paid cigarettes (which would be in a branded pack) more attractive to consumers.
Review of Policy
He further points out that there has been little or no review of tobacco policy, to ascertain its effectiveness: “It just seems to be a case of jumping onto the next anti-tobacco hobby horse without reviewing whether policies like the display ban have had an effect on smoking rates, youth smoking levels etc. The reality is that they haven’t affected smoking rates. “The Economics of Tobacco Report, published in 2011, highlighted that once the price of a pack of cigarettes went above €8, we crossed a tipping point, whereby further increases in price were not the optimum way to either reduce tobacco consumption nor to raise revenue for Government,” he says. “That is a strong belief from Revenue, but one which is not always followed through by the Minister.” He points to other European countries, like Sweden and Germany, who rather than taking a “quit-ordie” approach, have invested heavily in education services on the dangers of smoking, cessation services etc, which “have been far more effective in reducing youth smoking rates”. “We’re already the most expensive country in Europe for cigarettes by a long way,” he sums up. “We’re becoming a bit of a basket-case, regulation wise, compared to the rest of Europe. At what point do we say, ‘this is not working? We need to think differently about this problem’. We need to change the way we think about the tobacco control agenda.”
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Health & Safety
Be Business Smart –
BeSMART.ie
BeSMART.ie is a free, easy to use, on-line tool from the HSA that empowers small businesses to prepare both written risk assessments and a safety statement which are specific to their workplace. Health and safety legislation applies to all businesses regardless of size. The Health and Safety Authority (HSA) recognises that in retail, owners/managers face quite a different set of issues compared to their larger counterparts. In a typical retail environment, the owner/ manager often has responsibility for a whole range of functions – finance, HR, health & safety, etc. Speaking about the challenges that small businesses can face, Brian Molloy, Health and Safety Authority Inspector, says, “There is a solid business case supporting the effective management of
workplace health and safety in retail. Small businesses often rely on one or two key employees and the implications of losing a key employee due to prolonged absence after a workplace accident can be devastating. This is on top of potential additional costs in the form of higher insurance premiums or compensation payments.”
The Cost of Accidents
The cost of accidents in the workplace, in particular where employees have been injured, is quite staggering, as figures from the Injuries Board show. In 2011, there were 830 workplace claims, totalling €22.5m, with an average payout awarded of €27,102. To help small businesses, including retail, the Health & Safety Authority have developed BeSMART.ie (Business electronic Safety Management And Risk assessment Tool) which is a free, easy to use, on-line tool that empowers small businesses to prepare both written risk assessments and a safety statement which are specific to their workplace. To date there
are 146 business types supported in BeSMART.ie, including a range specific to the retail sector. For example: • Grocery Shops • Butchers • Newsagents • Delicatessens • Coffee Shops • Boutiques • And many others
Multiple Benefits
BeSMART.ie will support and assist retailers in dealing with health and safety in their business in a way that is quicker, easier and cheaper. The benefits of using this service are: • Reduce Accidents & Incidents in the Workplace • Reduce the Administrative Burden • Provide Guidance & Support • Increase Compliance • Simplify Management of Health & Safety • Improve Staff Morale & Motivation • Reduce Absenteeism • Reduce Costs
Cost Reduction
Feedback from registered BeSMART users to date indicates a minimum 86% reduction in cost and 71% reduction in time involved in undertaking risk assessments and preparing a safety statement for their workplace. So go to BeSMART.ie, register and pick your business type and work through the four easy steps to generate your own risk assessments and safety statement. Once complete, you can download, edit and print your safety statement with your risk assessments contained within it. Be Business Smart and go to www.BeSMART.ie today!
*MAT AC Nielsen Multiples ROI w/e 20th May 2012 **AC Nielsen Multiples ROI 12 weeks, w/e 20th May 2012. †Processed cheese category***All natural ingredients range consists of portions, tubs and Dunkers cheese dip only. Full ingredients: skimmed milk (water, skimmed milk powder) (58%), cheese (16%), whey powder (from milk), butter, milk proteins, concentrated natural lemon juice, stabiliser (sodium carbonate), citrus fibre, salt. See pack for details.
OV6329
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Back to School/Lunch Box
A well-stocked Back to School/Lunch Box sector can ensure extra profits for your store during this crucial sales period.
Term Time Treats THE Back to School period is a vital one for retailers, with sales and profit opportunities galore. Research reveals that the Back To School shopping period starts about two to three weeks before schools return from the summer holidays and stretches out a further two to three weeks “back at school”, with the main spike in sales generally seen during the last week in August. Indeed, the last few weeks of the school holidays can be one of the most lucrative periods of the year for retailers. Effective Point of Sale displays are crucial during this time, highlighting Back to School offers, bundles etc to consumers.
The Back to School market includes everything from stationery supplies to lunch box fillers, snacks, drinks and even cereals, with the latter category showing strong growth during this key sales period. The start of the school year, as well as being busy in its own right, is also the time when habits are formed that last the rest of the year.
Nestlé Confectionery
Nestlé Confectionery is to launch a fun range of smaller treats from its best-loved family brands Smarties, Rowntree’s, Milkybar and Animal Bar. The range of four products is available from mid-July and is ideal for parents
New Smarties Finger Puppets; a foil pack full of mini Smarties, with 10 different animal finger puppet characters to collect.
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Back to School/Lunch Box
New Rowntree’s Jelly Aliens: each pack contains one big, soft jelly alien sweet, with 10 aliens to try.
looking to buy smaller treats for children aged 4 to 11 years. First in the range is new Smarties Finger Puppets; a foil pack full of mini Smarties. Kids can tear off the end of the pack, eat the sweets and then play with the finger puppet characters. There are 10 different animal characters to collect. Next up from Rowntree’s is the new Rowntree’s Jelly Aliens. Each pack contains one big, soft jelly alien sweet. There are 10 aliens to try and each has two different fruity flavours running through it. From Milkybar, there is the white chocolate Milkybar Kid - a new fun shaped character mould, which will replace the current Milkybar small product. Finally, there is Animal Bar, a bar which already has a very loyal following and gives the range New from Milkybar a milk chocolate offering with the comes the white chocolate Milkybar fun factor, through the animal moulds Kid, a fun shaped character mould. and interactive packaging, with puzzles inside the wrappers. Both of these products are ideal for younger children as the solid chocolate melts easily in little mouths. The ‘smaller treats’ range has been designed to appeal to kids and parents alike. Parents will love the fact each treat is from a trusted big brand, contains no artificial colours, flavours or preservatives, and comes in a small portion, while children will love the variety and fun aspect of the
treats. Earlier this year, Nestlé Confectionery announced it was the first major confectionery manufacturer to ensure all its products contained no artificial colours, flavours or preservatives.
and minerals at breakfast are often not compensated for in later meals so it’s important to make time for it. Kellogg’s cereals provide at least 25% of the recommended daily allowance (RDA) for vitamins such as thiamine, niacin, vitamin B6, riboflavin, vitamin B12 and folic acid. They also provide 17% of the RDA for iron per serving. Calcium, vitamin C and vitamin D are also added to some Kellogg’s brands. With the latest research showing that nine out of 10 Irish children do not get enough Vitamin D in their diet, it’s great to know that with a simple serving of Kellogg’s cereals, kids are being given the best start to their day. The beginning is everything! Kellogg’s Nutri-Grain, a well known favourite in cereal snacking in the Irish market, has some very exciting news: Animal Bar enjoys a very loyal following in Ireland, they have just launched a new and its interactive packaging, with puzzles inside product to the range, Nutrithe wrappers, proves particularly popular. Grain Crunchy. “This new range sees our big brands offer treats mums feel happy to give, along with the fun and variety that kids will love,” says Nestlé Consumer Marketing Manager, Maria McKenna.
Kellogg’s
We all know that tight schedules and chaotic mornings can lead to breakfast not being a top priority in many households. As September draws near and families start to prepare and get organised for the new school year, the role of breakfast becomes increasingly more important, to ensure that children start the day the best way. We also know that missed vitamins
New Nutri-Grain Crunchy is an enjoyable, satisfying snack made from golden baked wholegrain oats and honey
Kellogg’s cereals provide at least 25% of the recommended daily allowance (RDA) for vitamins such as thiamine, niacin, vitamin B6, riboflavin, vitamin B12 and folic acid.
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Back to School/Lunch Box Nutri-Grain Crunchy is an enjoyable, satisfying snack made from golden baked wholegrain oats and honey. The bar, which is in duo format, comes in two flavours - Oats & Honey and Oats & Chocolate. “We’re delighted with the new addition to the Nutri-Grain range,” says Emer Barry, Kellogg’s Snacks Brand Manager. “With the introduction of Kellogg’s Nutri-Grain Crunchy, we’re offering consumers a snack that promises to really hit the spot.” Nutri-Grain Crunchy is available in store now!
Danone Actimel
The number one brand in fresh dairy products (Source: ACNielsen volume share 12.7% YTD w/e May 20, 2012), Danone Actimel have announced a new Back to School campaign ‘A little bottle… that’s Full of Life’: packed with billions of exclusive L. casei cultures, Danone Actimel is ‘Full of Life’. The new through-theline campaign is led by a new TV advertisement, which has enjoyed strong results around Europe, resulting in increased demand for the Actimel brand. The campaign focuses on reminding parents of the key ingredients that go into every bottle of Danone Actimel that make it so ‘Full of Life’! Ingredients like tasty yogurt with over ten billion l.casei live cultures, delicious fruit puree, vitamin B6 and even vitamin D, essential vitamins that help support the immune system, which as parents know, is very important all year round. To coincide with the new campaign, Danone Actimel will also be launching new Actimel Strawberry & Apricot Mixed Pack. Each pack has 6 bottles of delicious Strawberry and 6 bottles of tasty
New Danone Actimel Strawberry & Apricot Mixed Pack: with six bottles each of delicious Strawberry and tasty Apricot.
Water Winners from Tipperary A ‘must-stock’ brand this Back to School period, Tipperary Kidz water is the perfect water for packed lunches and for quick re-hydration throughout the day. Designed especially for kids, Tipperary Kidz water comes in an easy to hold bottle with a fun flip-cap for instant refreshment. Not only is it fun for kids but parents can be happy too in the knowledge that water is the healthiest option. Tipperary Kidz continues to lead the way in the kids’ water category and is a pure, natural mineral water, winning 7 International Gold Medals for taste, quality and excellence, so parents can rest assured that their little ones are only getting the very best. This year, Tipperary Kidz is available in two new exciting flavours – Fruit Blast and Tiger Juice! The standard
Tipperary Kidz is also available in an innovative and handy ‘6 pack’. Look out for exciting promotional activity during the Back to School period, including a ‘15 for 10 pack’ and a ‘€2.99 price flashed 10-pack’. These which will be fully supported with in-store displays and point of sale material.
Danone Actimel’s new Back to School campaign ‘A little bottle… that’s Full of Life’ is led by a new TV advertisement, which has enjoyed strong results around Europe.
Apricot – both flavours are a firm favourite with kids. Mixed packs are new to the yogurt drinks category and aim to provide something unique for parents: all the kids have to do now is choose which delicious flavour to have.
Heinz Snap Pots
Heinz Snap Pots are ideal for lunchboxes or as a tasty, speedy after school snack. Family favourites, Heinz Baked Beanz, Heinz Spaghetti Hoops and most recently Heinz Reduced Sugar and Salt Beanz are all available the truly innovative Snap Pot format. Each Snap Pot pack offers four individual 200g portions that are ready from the microwave in just one minute, making them ideal for busy families and lunch and snack occasions, both in and out of home. In addition, because Heinz Snap Pots can be popped directly into the
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Back to School/Lunch Box in key women’s and food press titles.
Gem Pack Foods Ltd
Heinz Baked Beanz and Heinz Spaghetti Hoops and most recently Heinz Reduced Sugar are available the truly innovative Snap Pot format.
microwave, there is no the need to hover by the hob or add to the washing-up!
Goodfella’s Delizia
For your calories-conscious customers, serving up a light delicious meal has never been easier thanks to this new range of Italian-inspired pizzas that are ready to cook straight from the freezer, to please consumers’ schedule and tantalise their taste buds. Goodfella’s Delizia pizzas, from Green Isle Foods, have a light and crispy seven-inch base and contain less than 500 calories, making them an ideal lunch for one. Consumers can indulge in succulent red peppers, creamy mozzarella and juicy slow roasted tomatoes, and with two pizzas in every pack, there’s no need to share! Stock up now while the range is being supported
The Sun-Maid raisin brand, distributed in Ireland by Gem Pack Foods Ltd, is one of the 10 most recognised brands in the world. Introduced onto the Irish market in 1994, Sun-Maid has become a popular brand, and consists of wholly natural raisins with no oils or glazing agents. Children love the freedom of snacking with their own minibox of Sun-Maid Raisins, making them ideal for lunch boxes. They are also great for everyone in the family, and perfect for packed lunches or quick snacks, contributing to consumers’ recommended five-a-day fruit and vegetable consumption. Sun-Maid Raisin Mini Snacks go anywhere, are always ready to eat, won’t spoil, don’t require refrigeration, and are 100% natural. Sun-Maid Raisin Mini Snacks go anywhere, are always ready to eat, won’t spoil, don’t require refrigeration, and are 100% natural.
Goodfella’s Delizia pizzas, from Green Isle Foods, have a light and crispy seven-inch base and contain less than 500 calories, making them an ideal lunch for one.
Back to School With BIC THE start of the new school year means two things; new shoes and new stationery! BIC offers a wide range of products, from the BIC Kids colouring packs, the student staple BIC 4 Colours pen to the iconic BIC Cristal. According to a recent survey, BIC is the go-to brand for parents. Indeed, when asked about BIC as a brand, 75% per cent of parents associate it with Back to School supplies. The BIC Kids range offers safe, long lasting and fun products that are loved by parents and kids alike, while the classic BIC Cristal pen is renowned for its timeless design, long-lasting ink and durability, making it ideal for school pupils. BIC offers practical products with a wide selection of colourful pens, pencils and crayons, as well as offering value for money. The BIC 4-Colour pen is a zany twist on the popular classic BIC 4-Colours pen, with its funky new ink colours in ocean blue, girly pink, deep violet and acid green, which is ideal for making homework time that little bit more exciting. Or if consumers prefer to stick to their primary colours, the traditional red, blue, green and red coloured inks of the BIC 4-Colours is the reliable option for them. The BIC 4-Colour pen is a zany twist on the popular classic BIC 4-Colours pen, with its funky new ink colours in ocean blue, girly pink, deep violet and acid green.
Pocket Money Range
30c
30c
NESTLÉ’S POCKET MONEY range brings together some of the best-loved family brands - SMARTIES, ROWNTREES, MILKYBAR and ANIMAL BAR - in exciting fun-sized versions. The Pocket Money sector is valued at ¼8.4m annually.*
Kids will love new SMARTIES Finger Puppets. Each handy foil pack is chock-full of mini SMARTIES. 10 different animal characters to collect.
ROWNTREE’S Jelly Aliens is an exciting new pack with one big, soft jelly alien inside. There are 10 different aliens to try, each with two deliciously fruity flavours.
ANIMAL BAR has rightly earned a very loyal following with its fun animal moulds and interactive puzzle wrappers. It’s the fastest selling Chocolate Pocket Money Brand.*
Classic MILKYBAR creamy white chocolate, in the shape of the MILKYBAR Kid.
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SHOP 2012 Entries are open for the 2012 Irish Cheese Awards at SHOP 2012, which takes place from September 25-27 in the RDS Simmonscourt.
Shopping for the
Big Cheese THE third annual Irish Cheese Awards, run by SHOP in association with Sheridans Cheesemongers, are now open to all cheese producers in Ireland, with the Awards presented at SHOP – Ireland’s retail, food, drink and hospitality event, which runs from 25-27 September, 2012, at the RDS Simmonscourt, Dublin. This year, the awards are set to be even bigger with the integration of the Sheila Broderick Memorial National Farmhouse Cheese Competition, which traditionally took place at Listowel Food Fair. For the first time, the Sheila Broderick Memorial Trophy will be presented to the Supreme Champion of the Irish Cheese Awards by her daughter Eilish, adding additional prestige to the event for cheese producers. “There is a phenomenal amount of interest in Irish farmhouse cheese and this is reflected in the growth of the sector, both at home and abroad,” explains Kevin Sheridan from Sheridans Cheesemongers. “Irish agriculture is one of our truly good news stories and the success of Irish cheese reflects how well premium quality driven produce is received here in Ireland and in export markets. The Irish Cheese Awards seek to honour our cheese makers for the hard work and creativity they put in to their products.”
More Categories Than Ever Open to Irish farmhouse cheese makers and dairies, this year the
organisers are expecting to surpass the 146 entries in 2011, and have added two additional categories to reflect the growing market of speciality cheeses in Ireland. ‘Soft Cheese with Flavour Added’ and the division of the ‘Goat’s Milk’ category into ‘Under Two Months’ and ‘Over Two Months’ has seen the award categories grow from 14 to 16. Other categories include ‘Sheep’s Milk Cheese’, ‘Blue Cheese’, ‘Mature’ and ‘Bloomy Rind’, with the “big cheese” at the event being crowned ‘Supreme Champion’. Speaking about the benefits for cheese makers of entering the competition, Elisabeth Ryan from Sheridans Cheesemongers says: “A category win at the Irish Cheese Awards really raises the profile of a cheese. This is now the third year of the awards and consumers can see the correlation between the quality of the product and the distinctive gold medal award on the packaging.”
Hugely Positive Impact
County Galway producer, Marion Roeleveld of Killeen Farmhouse scooped the Supreme Cheese accolade in 2011 with her Killeen Goat Mature cheese. “To be crowned the Supreme Cheese at the Irish Cheese Awards at SHOP 2011 was a real honour and recognition for the hard work that we’ve put into making Killeen Goat Mature. This win had a hugely positive impact for our business, and opened doors to lots of
Kevin Sheridan from Sheridan’s Cheese with Supreme Cheese Winner 2011, Marion Roeleveld, Killeen Farmhouse, Co. Galway.
new customers who appreciate high quality Irish cheese.” The entry form is available to download at www.easyFairs.com/ SHOP and producers are welcome to submit more than one cheese. Cheeses will be judged on their flavour & aroma, body & texture, colour and overall appearance. The judging panel will be made up of leading and independent experts from the industry, including Ross Lewis from Chapter One and acclaimed cheese author Patricia Nicholson; and entries must be submitted by August 31, 2012. Matt Benyon, Managing Director of easyFairs in Ireland & the UK, which organises the Irish Cheese Awards and the SHOP exhibition, concludes: “The Irish Cheese Awards is one of the highlights of SHOP, and attracts many visitors who travel specifically to sample the cheeses and find out which producer will be the next ‘big cheese’. We are delighted not only to be working once again with Sheridans, which expertly organises the awards and the judging, but also incorporating the prestigious Sheila Broderick Memorial Trophy into the Cheese Awards.” FOR further information or to register for free entry to the exhibition, please log onto www.easyFairs.com/SHOP, find SHOP on Facebook at www.facebook.com/SHOPDublin or via Twitter at SHOP_2012.
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Rebranding at Gala Gala continue to highlight the benefits of their rebranding initiative to all Gala retailers across Ireland.
Why Change is
The Baker’s Corner range from Gala has seen expansive growth and is now already located in over 75% of Gala convenience stores nationwide.
A SMALL investment in re-branding can make a huge difference to your store. The benefits include: 1. 2. 3. 4.
Increased Brand Awareness Affordability Meeting Consumer Expectations Modern & Contemporary shopping experience 5. Benefit from National Group Marketing
GALA Retail Services are continuing to demonstrate the benefits of change with the on-going roll-out of, and support for, their exciting new rebranding strategy, which has already been adopted by many Gala retail stores across Ireland. The ‘new look’ for the Gala retail convenience group continues to be embraced by retailers in 2012 across the entire Gala Retail Group. Gala Retail Services places a huge emphasis on branding, and through this strategy, the group ensures that all shoppers visiting their local Gala store enjoy a consistent ‘Gala’ shopping experience, wherever they are in Ireland. The aim of this rebrand initiative is to ensure Gala Retail Services continues to meet customer expectations in an affordable way, in both a modern and contemporary setting.
Baker’s Corner
In addition, Gala Retail Services introduced the Baker’s Corner, an in-store bakery brand, back in late 2010 which has subsequently seen expansive growth and is now already located in over 75% of Gala convenience stores nationwide. Gala customers can now pick up delicious bakery products, made fresh
on the premises, which celebrate unique Irish tastes such as traditional soda bread, brown bread, scones, muffins and apple tarts. Baker’s Corner stands out, due to its quality, taste and the affordability of the entire range, combined with the simplicity of production.
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Rebranding at Gala
What the Retailers Think… “The positive response that we have received since the rebrand to the Gala new image has simply been phenomenal. This has been particularly evident with the staff. By investing in the business, we were investing in their jobs and the future of the business. The new look sent out a clear sign that Gala was here to stay!” John Mc Gloin, Gala Foxford, Co. Mayo “Our customers were thrilled with the new look store: we’re the smartest retailer in town both in terms of our customer service and the overall look of the store.” Paul Cullen, Gala Adamstown, Co. Wexford “The Gala store revamp has not only given us a new store but has re-energised the team and myself. It now provides a first class shopping experience for our customers. We’re getting regular, positive feedback from customers and the store’s new look has certainly re-ignited interest from the community.” Michael McIntyre, Gala Donegal Town, Co. Donegal
Good!
“Even though business is challenging across the board, I’m so pleased that we made the investment as it has certainly bolstered our business. I wouldn’t like to second guess how trading would be without this added boost which will pay off for years to come.” Ivan Camier, Gala Ballydehob, Co. Cork “Since our refit, the store has literally had a facelift - not just in terms of how it looks, but we’ve witnessed a marked increase in footfall, passing trade and income. The distinct lime green and contemporary shopping environment has certainly attracted more and more passing commuters to stop at O’Shea’s Gala and our forecourt has never been busier.” Mary O’Shea, Gala Blennerville, Tralee, Co. Kerry “It was a significant investment but our new look Gala store has paid off hugely. We are extremely proud of the store and the shopping environment that we’ve created.” Kevin Bracken, Gala Portlaoise, Co. Laois
Gala places a huge emphasis on branding, thus ensuring that all shoppers visiting their local Gala store enjoy a consistent shopping experience.
Gala is a young and enthusiastic convenience retail brand that prides itself on its professional and quality retailers, and through their recent rebrand strategy, they have proved that Gala is a progressive business that believes in the benefits of change.
Gala have distributed a ‘Time For Change’ brochure to retailers nationwide, highlighting the benefits of re-branding to the new Gala image.
For further information on the Gala Rebrand initiative, please contact Gala Customer Service Helpline on 1850 600 100.
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Retail Ireland: Monthly Update Another Big Cigarette Haul Proves Smuggling Problem Remains Huge RETAIL Ireland welcomed the seizure of 5.3m illegal cigarettes in Dublin Port at the end of May. Over 1.8bn cigarettes smoked in Ireland are sourced from the black market, costing the Exchequer up to €750m every year in lost taxes. Commenting on the issue, Retail Ireland Chairman Frank Gleeson said, “This seizure in Dublin is just the tip of the iceberg. Retail Ireland estimates that almost 30% of the Irish cigarette market is made up of illicit product, with over 1.8 billion cigarettes smoked in Ireland sourced from the black market. “This illegal trade has a devastating impact on retailers, who are already struggling to keep people in jobs. We estimate this activity costs the Exchequer up to €750m per annum in lost taxes. This money flows right into the hands of criminals. We need to see urgent action from Government, including investment of more resources into detecting cigarette smuggling, to put an end to criminals reaping large amounts of money from black market trade.” Retail Ireland believes the black market in cigarettes, fuel and other products must be tackled as an immediate priority. The livelihoods of retailers depend on it. Retail Ireland will shortly be publishing detailed proposals in this area.
Consumer Sentiment Up: When Will Sales Follow? THERE was another small increase in consumer sentiment in June, with the ESRI/ KBC Index showing an obvious upward, if unstable, trend since Christmas, despite a slight dip in May. KBC’s Austin Hughes said “In view of the difficult and uncertain economic backdrop facing Irish consumers, this sort of jagged pattern about a modestly improving trend is probably as much as can be expected. If sentiment continues to improve modestly through the remainder of 2012, this would seem consistent with a gradual stabilisation in consumer spending.” But when will the drop in spending stop? Other statistics, notably the CSO Retail Sales Index, show that the volume of sales fell by 2.1% in May compared to the same month last year. Retail Ireland has been providing its members some key tools in a bid to understand the data and plan for this uncertain future. Our new IBEC Consumer Monitor, published at the end of June, shows that consumer incomes will stabilise in 2012, after two years of significant declines. We estimate that the combination of recent ECB interest rate cuts, and a further possible 0.5% reduction over the coming months, will leave mortgaged households €700 better off per annum. Retail Ireland has set out a range of proposals to kick-start the domestic economy, including: • Reform of pension rules to allow people to unlock and use part of their AVC and personal pension savings now; • Tax incentives to encourage additional home renovation activity and move work from the informal to the formal economy; • A new social welfare smart card system, to ensure child benefit payments are spent in the domestic economy. Retail Ireland will continue to push these proposals with Government to help stimulate the domestic economy and help your business return to growth. Our members will help shape that message – to influence our agenda, get in touch.
Government Instigates Review of Producer Responsibility Initiatives THE Department of Environment, Community and Local Government has announced details of a public consultation on Producer Responsibilities Initiatives. PRIs are the schemes designed to reduce waste at various points along the supply chain, including at retail level. Repak is probably the best known example of this. Ireland, and Irish retailers, have a good record on dealing with issues like packaging waste. The recovery of packaging waste in Ireland stands at 74%, significantly in excess of the EU Directive requirement of 60%. That said, much could be done to make the system better. Retail Ireland believes greater transparency around fees must be considered under the Government review and stringent efforts should be made to reduce the cost of compliance. The closing date for comments is July 25. The consultants will be engaging directly with stakeholders such as Retail Ireland, and we will be consulting with our members prior to making our submission.
Tel: 01-6051558 www.retailireland.ie
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Best
Top 20 Wine Brands
Cellars
Jean Smullen examines the Top 20 wine brands in Ireland, and what they have to offer your consumers. ALTHOUGH the economic downturn impacted wine sales, the market continues to grow, albeit at a much slower pace than heretofore. Consumption fell in 2008 (-9%) and 2009 (-9.5%), largely because the government increased wine duty. A duty reduction in 2009 resulted in the repatriation of this trade back to the Republic of Ireland (from Northern Ireland) and a modest recovery. In 2010, the market grew by 9%, returning the market to its peak 2007 level of 8.7m cases. Recent figures indicate that volume growth continued through 2011, with overall wine sales to December 2011 increasing by +2.1%, though value sales
were flat (Source: DIGI Report 2012). Turning to the all important wine brands, Blossom Hill remains the number one wine brand in Ireland for the third year in a row. The strength of this brand is evident in the figures: Blossom Hill increased its share during the 2011-2012 period by+ 6.1%. McGuigan retains second place, with sales increasing by 9.3%, while Chilean stalwart Santa Rita moves up a place to Ireland’s third most popular wine brand, with a market share increase of +10.2% during the 20112012 period (Source: ACNielsen). Wine consumption accounts for 26.4% of retail sales of alcohol of consumer spend in Ireland in 2011, a figure of €6.0914 billion. Indeed, wine sales are increasingly encroaching on those of beer, which have dropped from 58.3% of the total alcoholic beverage
1. Blossom Hill – California, USA (Gleeson Incorporating Gilbeys) THIS wine brands holds much appeal for the female wine consumer, the main source of wine purchases in Ireland. For the fourth year running, Blossom Hill will be sponsoring ladies’ day at the Discover Ireland 2012 Horse Show at the RDS, which always attracts a big crowd. This brand continues to get it right! They know their customer and work hard to keep the brand fresh and vital. These are fruit forward, very drinkable wines, made from popular varietals that include Chardonnay, Sauvignon Blanc, Pinot Grigio, Cabernet Sauvignon, Merlot, White Grenache and of course the much loved White Zinfandel.
market in 2000 to 46.7% in 2011. The best news for wine retailers is that off sales now account for over 60% of all alcohol purchases in Ireland (Source: DIGI Report 2012).
2. McGuigan – Australia (Barry & Fitzwilliam) THIS family-owned brand has seen increased profile in the last year, particularly in the multiples, which has led to a significant increase in their market share, with the result that they have jumped to number two in 2012. Watch out for their very innovative McGuigan City Vineyard that will be set up in Meeting House Square in Temple Bar, Dublin, from September 5-9, 2012. This will include the first ever vines to be planted in the heart of Dublin. Temple Bar will be transformed into a living, breathing vineyard, with over 120 vines, a cellar door, wine barrels, tractors and wine makers. It will be open to the public. See www.mcguigancityvineyard.com for more information.
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Top 20 Wine Brands 3. Santa Rita – Chile (Gleeson Incorporating Gilbeys)
BACK up to third place in 2012, Santa Rita have been innovative in the last year, introducing new labelling. Their classic 120 Range continues to highlight Irish links to Chile, using their their Local Hero Award. The winning Santa Rita Hero, nominated from local community groups in Ireland, is awarded €10,000 to spend on their local activity. The winners also receive a trip for two to Chile to visit the iconic Santa Rita cellars just outside Santiago. Premium wines are also strong with this label, including Casa Real, Medalla Real, Pehuen and Floresta, all produced from the company’s own vineyards in Limari, Casablanca, Leyda, Maipo and Curico Valleys.
4. Wolf Blass – Australia (Edward Dillon & Co. Ltd) REFLECTING the decline in sales of Australian wine here, Wolf Blass, once the number one wine brand on the Irish market, now drops to fourth place. The figures include sales of both Wolf Blass and their second label, Eagle Hawk. Wolf Blass is still to be found all over the country in all the supermarkets and multiple groups. It is still considered to be a quality wine and the consumer likes to purchase the premium wines from this range for special occasions. This is a very strong brand and has enormous recognition with the Irish consumer.
5. Jacob’s Creek – Australia (Irish Distillers/Pernod Ricard)
THIS is another of Australia’s iconic wine brands. This year they have been very active with their ‘True Character’ campaign, which aims to encourage the consumer to look again at the brand, to remind themselves why it is so good. The quality stands out and the classic varietals, which include Chardonnay, Pinot Grigio and Sauvignon Blanc, as well as their great blends, Grenache/Shiraz and of course their world beating Jacob’s Creek Sparkling Wines, indicate that Jacob’s Creek is fighting back. A major advertising and consumer in-store tasting campaign has worked well to create greater awareness. Expect to see overall sales increase for Jacob’s Creek in 2012.
6. Hardy’s – Australia (Barry & Fitzwilliam) UP a place from seventh position in 2011, Hardy’s have been working hard to create greater visibility for their brands, especially in the key supermarkets. Brands include Hardy’s VR, an entry level range. Hardy’s Stamp of Australia focuses on interesting blends, including Riesling/ Gewurztraminer and Shiraz/Cabernet. Hardy’s Nottage Hill and The Riddle are good in the mid-price sector and are mostly single varietals and blends. They also have a range of premium wines, the Private Bin and Oomoo, which are aimed at the wine enthusiast who likes to purchase quality wines.
7. JP Chenet – France (Groupe GCF Les Grand Chais de France)) THE generic JP Chenet range has very wide distribution here and their entry level wines perform well. France still struggles to compete in the big league of wine brands, but JP Chenet prove that it is possible to produce an everyday French wine brand that can compete with the New World on its own terms. The distinctive crooked bottle shape, known as Josephine, has its own customised bottling line and makes this wine brand stand out on the shelf. The Varietal Core Range, including Cabernet/Syrah, Merlot, Colombard/ Chardonnay, Chardonnay, Sauvignon Blanc and Grenache/ Cinsault Rosé, all perform well on this market. See www.jpchenet.com for more information.
8. Cono Sur – Chile (Findlater Wine & Spirit Group) UP from 11th place in 2011, Cono Sur is part of the Concha y Toro company in Chile. Drinks Interntional voted Concha y Toro the “Most Admired Brand” for wines globally in May 2012. Though Concha y Toro is a company rather than a brand, their two key wine brands Cono Sur and Casillero del Diabolo, both feature strongly in the Irish Top 20 brand story. Cono Sur continues to go from strength to strength on the Irish market, thanks to Findlater’s crack marketing team. The company’s “green” credentials, clever marketing and clear concise labelling have all helped to create greater awareness for this brand. Coupled with a very strong, quality product, expect to see this Chilean giant continue to surge forward in 2012.
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Top 20 Wine Brands 9. Torres – Spain (Findlater Wine & Spirit Group)
Up to eighth place from 11th in 2011, Bodegas Torres is the second “Most Admired Brand” from the UK survey by Drinks International. Miguel Torres visited Dublin recently on his “farewell tour” before he hands over the reins to his children. Now 70, he is the fourth generation of his family to run the business. Today the company have spread their winemaking philosophy throughout Spain. They now make wine in the Spanish DO’s of Jumilla, Priorat, Rioja, as well as their Santa Digna operation in Chile. Their affordable wines Vina Sol and Sangre de Toro continue to perform well in Ireland.
10. Lindemans – Australia (Findlater Wine & Spirit Group)
LINDEMANS are now part of the Treasury Wine Holdings stable and as well as Australia, the brand has extended its range to include wines from South Africa and Chile. This brand continues to perform well here in Ireland, once again thanks to the good work of the Findlater marketing team. Lindemans has survived many changes in ownership in recent years. Since the new ranges were added in 2010 and the packaging and design were changed, this brand has upped the ante and shown a significant improvement in sales.
11. Carmen – Chile (Edward Dillon & Co. Ltd) POWERING ahead in 2012, Carmen has crept up from 15th to 11th position in the Irish Top 20 wine brands. The team at Edward Dillon have been working hard on this range. A visit by Sebastian Labbe, the head winemaker from Carmen, to present the Carmen Reserva and Gran Reserva ranges to press and key customers helped to raise awareness. Coupled with a strong consumer driven promotion, on-going for summer 2012, expect to see Carmen continue its growth surge as the
12. Faustino – Spain (Gleeson Incorporating Gilbeys) BODEGAS Faustino is a family-run estate founded in 1861, and the family have recently celebrated 150 years in business. The Faustino brand, launched here in 1960, is one of the best known internationally and is the best selling Rioja in Ireland, appreciated particularly for its price/quality value. The entry level wine, Faustino VII, has good brand recognition and the Gran Reserva Faustino I is a must stock. Faustino accounts for one in every three bottles of Rioja wine sold in Ireland.
popularity for Chilean wine continues to grow on the Irish market.
13. Rosemount – Australia (Edward Dillon & Co. Ltd) ANOTHER Australian star that consistently holds its own in terms of sales on the Irish market, Rosemount is one of Australia’s best known wineries. In 1864, a German immigrant, Carl Brecht, established the Upper Hunter Valley’s first vineyard and ran a successful winery until the early 1900s under the name Rosemount. Bob Oatley established Rosemount Estate in 1969 after a career in the coffee industry. Rosemount Estate is best known for its distinctive Diamond Label wines, which have been heavily profiled on the Irish market in the last year.
14. Concha Y Toro (Richmond Marketing)
THE second key Chilean brand from Conchya y Toro, the Casillero del Diablo range recently moved from Irish Distillers/Pernod Ricard to Richmond Marketing. The flagship brand of Concha y Toro is Casillero del Diablo (Cellar of the Devil), a wine that has succeeded well in the Irish market. Diablo wines have also received more than 125 awards from global internationally recognised wine competitions, including 13 Gold medals and 30 Silver medals. The winery has come a long way since Don Melchor first planted his vines in the Maipo Valley in 1830. Expect to see an improved performance from this brand on the Irish market in 2012.
15. [yellow tail] – Australia (Gleeson Incorporating Gilbeys) THE Casella family own this wine brand, and [yellow tail] is their flagship brand. The wine was created with a simple philosophy, to make a great wine that everyone can enjoy. [yellow tail] is ranked globally as the fourth most important brand, from its launch 10 years ago, when it became the most important brand on the US market
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Top 20 Wine Brands within three years. Innovation is the key: last year they launched Moscato in the US with enormous success. The same varietal has not caught on yet with the Irish consumer, but watch this space. Moscato is being touted as the new Pinot Grigio and when eventually, as expected, Moscato catches on, expect to see the [yellow tail] version succeed.
16. Oyster Bay – New Zealand (Delegats Wine Estate) OYSTER Bay is New Zealand’s ‘uber brand’ and indeed one of the world’s leading super premium wine brands. In 2011, Oyster Bay established an in-market team dedicated to working closely with customers to grow the Oyster Bay brand in Ireland. Oyster Bay has continued to lead New Zealand wine category growth and it ranks as the number one New Zealand brand in the Top 20. Total off trade data (Source: ACNielsen Ireland, May 2012) confirms the brand has the highest combined New Zealand retail sales value (€6.2m) and average bottle price (€9.01). Impressively, Oyster Bay has continued to capture consumer enthusiasm across its range of New Zealand cool climate wines, with MAT growth of Chardonnay +73%, Pinot Noir +45% and Merlot +13%. A standout performance from Oyster Bay, showcasing its unparalleled ability to drive wine category value growth.
17. Villa Maria – New Zealand (Barry & Fitzwilliam)
ENJOYING its second year in the Top 20 wine brands, Villa Maria is also the second most important New Zealand
wine brand. Founded in 1961 by its current owner and Managing Director, Sir George Fistonich, Villa Maria is celebrating its 50th vintage this year: each bottle is carrying a special label with a Q barcode that leads you to a dedicated 50th anniversary website. In Ireland, sales grew strongly, mainly in the supermarket sector. Special price offers increased sales during 2011, particularly for the mid-priced Private Bin range, which was discounted. However, this wine brand is a quality offering. The wines, especially the Private Bin range, are seriously good.
18. E&J Gallo – California, USA (10 International) THE Gallo name is strong and this strategic brand works with number of distribution partners in Ireland including 10 International and JC Kenny, who distribute in the West. The flagship Gallo range includes Gallo Family Vineyards and Turning Leaf, both in the midprice category. The Barefoot brand goes from strength to strength and has been particularly active with consumer promotions in 2011 and 2012, including participation at Taste of Dublin, the Ploughing Championship and many other consumer events. For sales enquiries, email Phil.Lynch@ejgallo.com.
19. Long Mountain – South Africa (Irish Distillers/ Pernod Ricard) THIS brand was created by the same company who created Jacob’s Creek, Group Pernod Ricard. This is the only South African brand in the top 20. The formula is much the same as its Australian counterpart, but the varietals differ slightly: Pinotage, for example. Long Mountain is a good, steady brand with high visibility, especially in the multiples, where special offers give the brand good sales.
20. Paul Masson – California, USA (Barry & Fitzwilliam) ANOTHER Californian icon, this winery is best known for its signature carafe shaped 2-litre bottles, which are a staple for parties all over the country. This wine has strong brand identification with the consumer and is very widely available in most of the key multiple groups.
Sometimes the best way to increase your bottom line is to add the New Zealand wine brand at the very top. As the number one New Zealand wine brand in Ireland*, Oyster Bay continues to lead New Zealand category growth across its range of Super Premium cool climate wines. Small wonder Oyster Bay is featured on Retail News’ ‘Top 20 Wines List’, standing out as your greatest opportunity to profit from the rapidly growing New Zealand wine category. Source: Nielsen, May 2012
Sometimes the world really is your oyster. oysterbaywines.com
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Waste Management
Where to for Waste Management? Repak welcome Government’s review of the Producer Responsibility Initiative, but at what PRIce? IN ITS Programme for Government 2011, the Government proposed to “drive a waste reduction programme through extension of producer responsibility initiatives” (PRIs). This would look at PRIs that are operating in a number of waste streams – Packaging, WEEE, Batteries, End of Life Vehicles (ELV) and Tyres and Farm Plastics. The objective is to identify what current waste streams would benefit from having their existing PRI either further developed or amended to ensure that Ireland meets the relevant EU targets. The Department of Environment, Community and Local Government, recently issued a Request for Tender for a ‘Review of The Producer Responsibility Initiative Model in Ireland’. Given the central role that Producer Responsibility plays in meeting Ireland’s recovery targets across a range of waste streams, this review of the Producer Responsibility Initiative model and the various compliance schemes currently operating will be an important study in shaping the role of PRI in waste recovery for the medium term.
A Good Time to Review
It is always a good idea for the Government to revisit public policy initiatives. It enables them to assess what is working and what learnings should be drawn and implemented. Repak has achieved a lot of important milestones since 1997:
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Packaging recovery rates have grown from 15% to 74% since it was founded. This makes Ireland the third best packaging recycler in the EU. Repak has invested over €225m in supporting packaging recycling in Ireland, raised purely from industry. Diverted over 5.7m tonnes of used packaging from landfill since its establishment in 1997. Repak helped Ireland meet and exceed its EU packaging recovery targets in 2001 (25%), 2005 (50%) and reached its 2011 (60%) target by 2008, three years ahead of time. Repak supports kerbside recycling, reaching nearly 95% of all households, 2,200 bring banks and 90 recycling centres, nationwide. Repak’s fee structure encourages less packaging on the market (the more packaging participating companies put on the market, the more they pay). 59% municipal recycling is driven by packaging recycling funded by Repak, proving the reach and impact of Repak on our overall national recycling rates. Educating businesses & households with national recycling campaigns and sponsorships, including: -- Repak Recycling Week; -- Repak Green Christmas; -- Repak Easter Recycling Appeal; -- Sponsoring An Taisce Green Schools Programme;
Repak CEO, Andrew Hetherington.
-- Supporting An Taisce National Spring Clean; -- Sponsoring Tidy Towns regional awards and Best Presented Bring Bank Awards; -- Running the Repak Prevent and Save program designed to minimise and optimise packaging usage. Repak is one of the longest established and most successful PRI schemes in Ireland. However, other PRI schemes have struggled to meet their targets, with issues that need to be resolved, most notably in the case of End of Life Vehicles (ELVs) and Tyres.
PACKAGING REGULATIONS are putting your business under
pressure Repak membership will lighten your load. Any business with a turnover of €1million that places 10 tonnes, or more, of packaging on the market, must comply with the amended packaging regulations 2008 – or face prosecution. Compliance is as easy as joining Repak, from as little as €1per day. Repak is the most effective compliance option chosen by over 2300 companies. Over 50 companies have already been prosecuted and, with over 2,000 inspections a year, your business could be next. Why risk heavy fines and even prison? Find out more about your company’s obligations under the amended packaging regulations - and how Repak membership can help – by visiting repak.ie or call 01 – 4670190.
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Waste Management Repak fully welcomes this initiative and will be co-operating with the Department and its appointed consultants as the study progresses. However, there are some concerns at a number of provisions which could involve additional costs to Repak members.
Repak’s Concerns
From its initial review of the tender document, which provides an overview of the policy context and some insight into the areas where the Department wishes its appointed consultants to focus, Repak has a number of concerns which could impact on Repak members. Primarily, these are: • The renewed focus within the tender document on a Packaging Tax: PRI consultants are now tasked to examine packaging tax, including how it would work ‘in tandem’ with a compliance scheme. Would the money raised with this tax be ringfenced for packaging recycling? • The possible introduction of a Deposit and Refund scheme for certain packaging waste: While this was not mentioned in the Programme for Government, it is specifically included in the PRI review. Deposits and levy systems can increase recycling, but potentially at a high cost to industry. • Possible Creation of a Waste Regulator: The potential for the imposition of additional costs on business through the creation of a Waste Regulator with
Repak supports kerbside recycling, reaching nearly 95% of all households, 2,200 bring banks and 90 recycling centres, nationwide.
powers to unilaterally set levels of payments and subsidies under PRI’s. • The introduction of other new environmental taxes: These have yet to be defined, but given recent public anger to the household charge and water charges, will likely not be well received. • The lack of clarity on recycling and recovery targets: Given the targets we have signed up to as a nation, this could cause concern. • The commitment to tackling noncompliance: This is good news, but how it would work in practice and under what conditions will be vital to understand. Non-compliance is a competitive issue for many compliant businesses. The tender document recognises that Packaging Recycling, through the Repak Compliance Scheme so assiduously supported by Repak members, has been the most successful recycling initiative in Ireland over the past 15 years, meeting and surpassing all EU targets. Per capita recovery in Ireland is the third highest in the EU, second only to Germany and Luxemburg. Independent analysis also shows that Repak charges are amongst the lowest in Europe. Thus, careful consideration needs to be applied to ensure any new proposals do not lead to a fracture of a framework which has served Irish business and the country so well.
EU Economic Instruments and Eco Taxes
Two recent reports have looked at emerging EU environmental policies and how to shift taxation of labour to environmental taxation. However, many EU countries have additional taxes, levies, and deposit schemes in addition to PRI fees to support recycling. One such country is Belgium, whose ‘Fost Plus’ scheme has been recognised as the best in class. However, the fees are almost double current Repak fees, and Belgian producers pay additional ecotaxes to the Belgian Government. A similar scheme in Ireland could put further cost pressure on producers. If a packaging tax is implemented, it is most likely to be a tax on ‘packaging’ and ‘industry’. This would keep consumer reaction to a minimum, but our concern would be that this
Repak helped Ireland meet and exceed its EU packaging recovery targets in 2001 (25%), 2005 (50%) and reached its 2011 (60%) target by 2008, three years ahead of time.
tax is likely to a revenue-raising tax, and not ring-fenced to the benefit of packaging recycling as the current Repak revenue is.
New Model, New Cost?
Another option is the potential breakup of the Repak model into multiple schemes. This would be a major shift in the packaging recycling industry. One of the biggest effects would be the move from a ‘shared responsibility’ model, where all the producers share costs, to a possible change to single point scheme. The biggest change for producers of potential multiple schemes is that the costs would likely increase as the Regulator would need to fix fees to ensure adequate funding for recycling. In all, producers could see fees increase greatly compared to Repak, whose fees are amongst the lowest in Europe (Source: Indecon). Reviewing PRI schemes is always worthwhile. In terms of the Government’s objective to identify what current waste streams would benefit from having their existing PRI either further developed or amended to ensure that Ireland meets the relevant EU targets, Repak suggests that the first step is to focus on the PRI schemes that are currently not delivering on their targets, as these schemes will need both support and backing to achieve their targets. “Repak welcomes any dialogue about packaging recycling, but would suggest that the review needs to be independent, objective and evidence based, with no predefined outcomes,” concluded Repak CEO, Andrew Hetherington. “Repak would urge all businesses to familiarise themselves with the PRI review and ensure as stakeholders that their views are heard by the department and consultants undertaking the review.”
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Food Safety
HH Solutions Make Compliance Easy HH Solutions provide products and software for storage, transport, production and retail requirements, helping to ensure compliance with food safety legislation throughout the retail, foodservice and catering industries. From their headquarters in Limerick, HH Solutions are the Irish & UK agents for Eltex of Sweden and the Irish agents for Comark Ltd. Their extensive product range uses cutting edge technology to make your life easier, from the smallest dial thermometer to the most advanced Wireless Monitoring System. One of their leading products, the award-winning Matman Check XE (pictured) has been developed with the help and feedback of their clients in stores throughout Ireland, as well as state regulatory bodies and visiting auditors. The Matman system is designed to remove to PC much
of the tiresome paperwork involved in maintaining HACCP records. It reduces administration costs, while meeting all compliance requirements, by saving all your readings in all CCPâ&#x20AC;&#x2122;s to a Data Logger. This Data can then be transferred to your PC, ready for viewing. Complete accountability of all checks is provided, with all the vital information collected, including: time, date, CCP, group, item, criteria, Pass/ Fail, corrective action if required and operator name. All reports are presented in pdf format, ready for management follow-up or sign-off. Designed around the food safety plan implemented by all the major retail groups, the Matman system has received huge praise from visiting Environmental Health Officers and contracted auditors for the way it helps stores meet audit compliance.
For more information, visit www.hhsolutions.ie or phone Garry on (061) 603742.
The award-winning Matman Check XE reduces administration costs, while saving all HACCP readings to a data logger, thus meeting all compliance requirements.
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Shop Profile Jim Burke’s Costcutter in Cullies, Co. Cavan, is proof that a strong work ethic and the right investment can pay dividends, even in the current economic climate. Pictured outside Costcutter, Cullies, Co. Cavan, are store owner Jim Burke and Damien Johnston, Regional Account Manager, Barry Group.
Burke’s Hard Work
Pays Off
Retail News first visited Jim Burke’s Costcutter in Cullies, Co. Cavan, in 2009. At that time the shop had been trading for just over a year. Jim Burke was confident that a significant investment in the forecourt and shop by a local developer would allow him and his symbol group partner, Costcutter, to develop the potential in the site. Four years later, this month’s Shop Profile shows that the spirit of enterprise is alive and well in Cavan. Jim Burke and his staff are not only surviving the recession, but trade levels in the shop in 2012 are up month-on-month. And the name above the entrance is still Burke’s Costcutter. Jim Burke, his staff and Costcutter have built up the business in an economy that has gone from bad to worse through one simple strategy: non-stop hard work and investment. From an initial base of strong fuel sales, Jim has grown grocery and foodto-go sales in the shop by providing good value for money, combined with convenience, quality and the highest standards of customer service.
Complete Deli Redesign
Indeed, the participation rate in the deli is one of the highest for any shop in the Costcutter group. In 2010, Jim completely redesigned the deli and invested heavily in an in-store bakery and the shop’s sit-down area. Having worked in the hotel sector for 24 years prior to his first venture in grocery retailing, Jim had very definite ideas for what he wanted to achieve: the result being that the specs in the café style sit-down area are top quality, fresh, clean, modern, welcoming and genuinely comfortable.
The in-store bakery in the deli provides patrons with delicious fresh baked goods and, combined with the hot food produced by the deli, has allowed Jim to position his Costcutter as a destination café. It has strong trade all week, including weekend breakfast and brunches. Retail News visited the shop on a Thursday morning and for the entire duration of the visit, there were multiple tables occupied in the sit-down area. The forecourt’s strong fuel sales are bolstered by the car wash facility, which has also been significantly upgraded
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Shop Profile since the first visit of Retail News. Customers getting a car wash can get a free coffee in the shop, a promotion that Jim does not even need to advertise, as word of mouth means that more than enough regulars treat themselves to a car wash and a coffee, even if they are counting costs. In a cost-saving measure for the shop Jim uses a natural water source on the site to provide the car wash with free water. “We have faced a lot of challenges since Retail News first visited the shop,” admits the store owner. “Between myself, my staff and with support from Barry Group, we have worked extremely hard to develop the shop and forecourt trade. Despite the conditions, we have found opportunities to grow the business by being competitive and by constantly examining everything from costs to stock selection, pricing and services.”
Chamber of Commerce, while also being heavily involved in the Cavan Chamber Tourism & Enterprise Awards. This has raised both his profile and the profile of his business in the community.
Watershed Moment
Dedication to Customers
He cites February 2010 as a watershed moment for Costcutter, Cullies. It was then that Jim, along with his symbol group partners in Costcutter, effectively audited every aspect of the performance of the shop. “That led directly to the investment in the deli and sit-down area,” he explains. “We also revamped the rest of the interior and refined the planogram, which led in particular to a big increase in confectionery sales.” He points out that the forecourt is situated near three schools and there is a Revise.ie study group situated on the site, while the ample parking on-site and the large number of housing estates and villages within a short drive from the shop gives the store a large catchment area: “Between the forecourt, car wash, deli and grocery sales, this site offers potential customers as many reasons as possible to choose Burke’s,” says Jim proudly. Jim has also worked tirelessly in his local community, currently serving his second term as president of Cavan
Describing Burke’s as “an excellent forecourt”, Damien Johnston, Regional Account Manager, Barry Group, pays tribute to the way that Jim Burke has steadily built up sales and customer loyalty in a very difficult business climate. “I actually live near this shop and I genuinely do shop in it because Jim has created an excellent balance of quality, convenience and price. He epitomises the Barry Group and Costcutter ethos: his dedication to his customers – and to the group – is second to none,” he says. “At Barry Group, we relish the challenge of working with entrepreneurs like Jim,” Damien continues. “He is constantly evaluating every aspect of his business and looking for ways to improve it.” Jim’s symbol group partners have matched his efforts, finding ways to drive down costs for Costcutter shops to help them stay competitive, while also investing heavily in the Costcutter image and the brand. “You have to fight for every bit of business, and you should treat all the stakeholders in
the business like your customers,” Jim sums up. “I really enjoy working with other local businesses because with a network of local support, businesses find it much easier to survive through difficult periods. And of course, local business owners are also local customers.” Jim Burke and Coscutter form an impressive team. An Irish entrepreneur with strong commitment to his community and a successful Irish-owned business, with an equally strong commitment to its community and customers: they are proof positive that a good team can build a good business in the most challenging economy.
Fact File Owner:
Jim Burke
Location:
Cullies, Co. Cavan
Size:
2,500 square feet
Number of Staff: 21, full time & part time Opening Hours: 07:00 – 22:30, Monday-Sunday
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Ethnic Foods Ireland’s love of ethnic cuisine shows no signs of abating.
Foreign Affairs up by 35% in 2011, according to the WHAT constitutes an ethnic food? organisers of Ethnic Foods Europe These days, it’s sometimes hard 2013, the international trade fair to tell, as what a decade ago were for the sector (March 12-13, 2013, considered to be exotic recipes have Brussels Exhibition Centre, become everyday meal solutions for the www.ethnicfoodseurope.com). majority of Irish consumers. Gone are Retailers across Europe are seeking to the days of ‘meat and two veg’ for every meet the demands of an increasingly main meal: instead, Irish consumers mixed consumer base, they maintain. regularly experiment with a host From new products to entire new of international cuisine, from pasta world cuisines, European food buyers dishes to curries, Tex-Mex to Chinese, are hunting for the next big thing. without a second thought as ethnic foods become a staple of Ireland’s weekly diet. Patak’s Broadly speaking, the ethnic Iconic food brand Patak’s, distributed foods sector includes Indian, Chinese, in Ireland by BR Foods, continues Mexican/Tex-Mex, Thai and Caribbean to lead the way in the Indian food foods, although sectors like category in Ireland Polish food have grown in and has recently popularity in recent years, added some new primarily due to Ireland’s lines to its range. large Polish immigrant Simply population: most large delicious, Mango supermarkets or c-stores now Chutney is a include at least one shelf of real traditional authentic Polish produce. Indian favourite The ethnic foods sector - especially when is extremely competitive, served with with new products, flavours pappadums as and innovations fighting an appetiser for consumer attention. to a curry. The consumer quest for Patak’s Mango Patak’s Mango Chutney authenticity is a driving Chutney blends blends juicy mangoes with factor, as our well-travelled juicy mangoes authentic spices, to create home chefs are no longer with authentic an irresistible addition to satisfied with a simple ‘curry’: spices, to create any Indian meal. It is also instead they want Biryani, an irresistible delicious with summer salads, Madras, Jalfrezi etc as they cold meats or on a sandwich. addition to any seek to recreate restaurant Indian meal. It is quality dishes at home. also delicious with It’s not just in Ireland that ethnic summer salads, cold meats or on a foods are popular. Ethnic food is sandwich. the fastest growing food category in In addition, Patak’s has developed European supermarkets, with sales two exciting new Stir Fry variants that
Patak’s has developed two exciting new Stir Fry variants that come in a handy 140g sachet: Goan Hot & Sour Indian Stir Fry Sauce and Punjabi 5 Spice Stir Fry Sauce.
come in a handy 140g sachet. Goan Hot & Sour Indian Stir Fry Sauce will tantalise consumer taste buds. The recipe is inspired by the classic Balchao that is traditionally made with prawns: red chillies, cinnamon, cloves, ginger, coriander and tomatoes are matured in vinegar to deliver a delicious hot and sour sauce. Punjabi 5 Spice Stir Fry Sauce is inspired by the famous Paanch Phoran (or Indian 5 Spices) that are used in a variety of Indian dishes: cumin, fennel, funegreek, nigella seeds and mustard seeds. They are then tempered with tomato and cream to create this enticing warmly spiced sauce. Consumers simply stir fry these sauces with fresh vegetables and tender meat or fish to enjoy a deliciously balanced Indian dish. The range is distributed in Ireland by BR Foods and is available nationwide.
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Ethnic Foods
Discovery Foods’ four new Perfect Mexican Meal kits feature 15% less cardboard, whilst still containing the same contents as Discovery’s previous Fajita and Enchilada kits.
Discovery Foods
Discovery Foods is aiming to take the meal kit market to another level by becoming the first and only brand to market rolled tortillas, in their four new Perfect Mexican Meal Kits. The new Perfect Fajita Kit builds on the launch of Discovery’s previous Fajita and Enchilada Kits by featuring 15% less cardboard, whilst still containing the same contents. The Perfect Kits include Tortilla, Topping and Seasoning mix. The Discovery brand hopes consumers as well as retailers will be drawn to the new range, which includes new flavours, thanks to its more compact format that saves space in the kitchen cupboards. It’s not any old kit, it’s ‘The Perfect Kit’. The Discover Perfect Mexican Meal Kids are distributed in Ireland by BR Foods.
Amoy
The Oriental market is one of the fastest growing areas within the Irish grocery industry and with its authentic credentials and distinctive packaging the Amoy brand from HJ Heinz is very much on trend, offering consumers healthy, tasty and convenient food through its range of Dark Soy Sauce Stir Fry Sauces, Soy Sauces, Noodles and from Amoy: a real favourite Ingredients. with Irish Consumers are consumers. constantly looking
for ways to experiment with different food types but in a way that does not demand too much of their time, especially during the week. The Stir Fry Sensations range from Amoy offers an extensive range of sauces to help consumers create tasty meals in minutes, from traditional Aromatic Sweet and Sour through to Thai Green Curry, Roasted Peanut Satay and
Amoy also offers an extensive range of stir-fry ingredients, including Chinese Stir-fry Vegetables, Thai Stirfry Vegetables, Beansprouts, Baby Corn Cobs and Coconut milk.
Blue Dragon
Pan Oriental food specialist Blue Dragon, market leader in the ambient Oriental food market, is continuing to drive growth across the category with the launch of the first Oriental ovenbake rice products on the market. The range aims to provide consumers with a convenient short cut to replicating popular Asian dishes that they currently buy only from restaurants. The new range builds on the success of the brand’s existing Oven Cook portfolio that launched in 2011. Blue Dragon Rice Bakes, in a 375g glass format, are available in four variants; Chinese Special Fried with soy and ginger: Nasi Goreng, an Indonesian-style sauce with sweet soy chilli; Thai Sticky Coconut; and Japanese Special Fried Rice. “Following the success of last year’s multi-million euro re-launch, Blue Dragon is continuing to innovate in order to drive interest and bring new consumers into the category,” says Alain Chua, Blue Dragon Marketing Manager. “Capitalising on its credentials as the authentic Oriental food brand, the new Rice Bake range aims to drive growth across the Oven Bake portfolio.” For further information on the Blue Dragon range please visit www.bluedragon.com.
The Stir Fry Sensations range from Amoy offers an extensive range of sauces to help consumers create tasty meals in minutes, like the popular Roasted Peanut Satay.
Succulent Szechwan Tomato. The Amoy ‘Straight to Wok’ Noodle range provides a helping hand to create delicious stir fries in minutes. There are four tempting varieties to chose from – Fine/Thread, Medium Traditional, Thick/Udon and spice infused Singapore Noodles – all of which are the perfect accompaniment to Amoy Stir-fry Sensations sauces and vegetables. The Amoy Soy Sauce range offers a wide choice, including Reduced Salt and Light Soy varieties, in addition to Dark Soy and a variety infused with Chilli.
New Blue Dragon Rice Bakes, in a 375g glass format, are available in four variants; Chinese Special Fried with soy and ginger: Nasi Goreng, an Indonesian-style sauce with sweet soy chilli; Thai Sticky Coconut; and Japanese Special Fried Rice.
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Music Use In-Store
Do You Have an
IMRO Licence? If you play music in your store via radio, TV etc, you need an IMRO licence, according to Keith Johnson, Director of Membership, IMRO. IMRO is a national organisation that administers the performing right in copyright music in Ireland on behalf of its members - songwriters, composers and music publishers - and on behalf of the songwriters, composers and music publishers of the international overseas societies that are affiliated to it. IMRO’s function is to collect and distribute royalties arising from the public performance of copyright music. IMRO exists to help businesses and community groups to legally access the worldwide repertoire of music in a cost effective and efficient manner, while making sure that songwriters, composers and publishers are rightly rewarded for the public use of their music.
Why do I need an IMRO licence?
Just like any other input into your business, musical compositions have to be paid for. When you use copyright music in your business, you must first obtain permission from the copyright owners to do so. You do this by obtaining and paying for an IMRO licence. IMRO makes it easy for businesses to tap into the power of music with one simple, cost-effective licence. We can provide you with a music licence that covers any use of our copyright music in your business premises, whether it be played by means of a television, radio/CD/digital player, PC or performed live. By obtaining an IMRO licence, your business will be legally compliant and all for just one payment per year. This enables you up to use music to drive your business in a fully legal manner!
If I just have a TV or radio, do I need an IMRO Licence? The simple answer is yes. A lot of copyright music is contained within television and radio programmes: just think about the theme tune to your favourite television programme. Whether the performance of IMRO repertoire is by means of a television, radio, record/CD/digital player, jukebox, video, PC or a live performance, an IMRO licence is still necessary.
Where do licence fees go?
All of the licence fees collected, after a deduction for administration costs, are paid directly to the people who compose, publish and write the music that you are using in your business.
Does music make a difference?
Research says that it does! With competition in the retail industry becoming increasingly intensive, consumers are being encouraged to select one retail premises over another. This is where the power of music becomes a positive influencing factor. Music has the tendency to put customers at their ease, thus encouraging them to spend more time in retail outlets and you know that the longer they remain in your shop, the more likely they are to purchase something. 84% of shoppers say they like shops that play in-store music and of that percentage, 23% claim they would be prepared to pay 5% more for goods if music was being played
(Source: www.musicworksforyou.com). This is good news as it demonstrates that creating a good atmosphere can help drive your business. Importantly, the advantages of using music in your retail outlet also extends to staff motivation as well as buying behaviour. Research has brought to light the impact that background music can have on staff. 66% of employees surveyed believed that background music made them feel better and more motivated at work (Source: www.musicworksforyou.com). Copyright music is a vital input into the success of your retail outlet and its use in your business does require that you obtain a music licence from IMRO.
How much does an IMRO licence cost?
The level of royalties due for background music use in retail shops is dependent on the size of shop floor areas, e.g. the cost (pre-VAT) for a shop space of up to 100m² is currently just 59c per day for the most extensive range of best quality music available well over 14m songs. For a shop with a floor area of 500m², the cost works out at just €1.45 per day. Once you put a licence in place, the cost falls by 33% in the second and subsequent years of the licence. IF you have any query regarding your need to hold an IMRO licence, please contact the IMRO licensing department at 01 661 4844, email licensing@imro.ie or see www.imro.ie/music-users/.
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Market News Lynx Attract Returns to TV EARLIER this year, Lynx launched its Lynx Attract - For Him and For Her range with a multiplatform marketing campaign. The brand continues to cause chaos with its return to TV, as part of a €4.4m marketing campaign. The introduction of Lynx Attract - For Him and For Her was an historic moment for the brand as it brought the ‘Lynx Effect’ to women for the first time in its 27-year history. “Lynx Attract is continuing to unleash the full power of the ‘Lynx Effect’ to men and women across Ireland with its return to TV,” said Selina Sykes, Lynx Marketing Manager. “The TV advert is set to remind people of the chaos that can be caused by the incredibly seductive fragrances, which have been designed to make the mating game doubly exciting.” See www.facebook.com/lynxeffectuk for more information.
New Look Cadbury Eclairs THIS August, Kraft is introducing a new pack format and design for its ever popular Cadbury Eclairs brand. In line with shopper trends, the iconic brand will move from a roll-pack to a pocket bag format, which will improve visibility and stand-out. The new design highlights the rich and indulgent associations with the brand and incorporates the unique ‘journey to the centre’ that consumers love about the product. The product, which has an RRP of 75 cent, will launch at a special offer price of 2 for €1.20 and will be supported with in-store POS.
McVitie’s Cheddars Crispy Bacon UNITED Biscuits has announced the launch of McVitie’s Cheddars Crispy Bacon. The new Crispy Bacon flavour addition to the McVitie’s Cheddars range will be available in the same 150g roll wrap format as other products in the McVitie’s Cheddars range, with the addition of a purple colour at one end to differentiate from the core range. Retailers can stock it alongside existing savoury biscuit lines and the splash of colour will create standout on-shelf. The product will be supported by an initial trial price mechanic, as well as price-links to existing McVitie’s Cheddars lines.
Crozier Blue Teams Up with Tesco ONE of Ireland’s best known cheese makers has teamed up with Tesco Ireland to promote and boost consumption of Crozier Blue, the only blue cheese in this country made from sheep’s milk. The promotion sees Crozier hosting tastings in Tesco Ireland outlets throughout the country, offering significant discounts for consumers, in what is a major marketing opportunity for Crozier Blue, cheesemaker Sarah Furno explained. Her parents, Jane and Louis Grubb, who also created Cashel Blue, first began making the cheese in their Tipperary dairy 20 years ago next year. “Crozier Blue is one of the best cheeses to be found in Ireland,” said Tesco Ireland’s cheese buyer, Barra McFeely. “The cheese is performing well in our shops and it is an important part of our range. We are proud to stock such a prestigious Irish cheese.” Jane and Louis Grubb’s nephew Henry Clifton Brown is pictured with the Crozier Blue range.
Vogue Perle Capsule PJ CARROLL & Co. Ltd is driving innovation in the cigarette category with the launch of Vogue Perle Capsule. “Vogue Perle Capsule has been developed to accelerate the growth of the Vogue range and meet adult smokers’ desire for continued innovation within the category,” comments Martin Keevers, Trade Development Manager at PJ Carroll. “Vogue Perle Capsule adds a whole new dimension with a Spearmint flavoured capsule, so when clicked, Vogue Perle Capsule delivers a refreshing burst in comparison to other menthol-flavoured capsule cigarettes.” Priced at €8.20, Vogue Perle Capsule will contain the same smooth 7mg blend as current Vogue Perle Bronze, which it replaces from July onwards. To purchase products, and for details of their nearest launch deals, retailers can call 1800 604 500.
Robinsons Fruit Shoot Not Impacted by UK Recall BRITVIC Ireland has confirmed that Robinsons Fruit Shoot produced and sold by it in the Republic of Ireland (ROI) is not impacted by a precautionary and voluntary product recall occurring in the United Kingdom. This is because Fruit Shoot sold by Britvic Ireland in the ROI is fitted with a standard cap and not the new design cap – ‘Magicap’ - that has given rise to packaging safety issues in the UK. In the unlikely event that consumers encounter Fruit Shoot packs sourced from other markets and bearing the Magicap pictured below, they should return it to the retailer for a full refund. For further information, call Britvic Ireland’s Customer Contact Centre: 1890 704804..
46|Retail News|July/August 2012|www.retailnews.ie
Shelf Life 27 ‘cows’ from across the EU gathered at the European Commission in Brussels to launch the Supporting Better Dairy campaign, a collaboration between leading animal welfare charities Compassion in World Farming, and the World Society for the Protection of Animals (WSPA), along with ice-cream company Ben & Jerry’s, to improve standards for dairy cows across Europe. Specific EU regulations already safeguard other farm animals, but dairy cows have no such protection, meaning that welfare standards vary greatly across the EU, with some suffering from poor health, inadequate housing and lack of access to pasture. The campaign will run the first-ever animal welfare European Citizens’ Initiative (ECI), allowing EU citizens to propose new legislation for improving standards for Europe’s 23m dairy cows. TOPAZ and Aware have launched a new partnership which aims to promote positive mental health and raise awareness of the important services Aware provides to people experiencing depression. One in 10 Irish people are affected by depression at any one time. The partnership will also see Topaz facilitate a range of fundraising ventures in their chain of over 300 petrol stations across Ireland and among their 1,400 staff. Topaz CEO John Williamson said the staff had helped select Aware as the Company’s charity partner and everyone at the company was preparing to give its fundraising efforts 100% support. Pictured at the launch is former Ireland rugby international Alan Quinlan, who suffered from depression, with Topaz CEO John Williamson and Rebecca Rushe, Head of Fundraising with Aware.
EAST Cork food brand Simplee has launched four new select 100% natural seasonings, with Garlic Sea Salt, Lemon Pepper, All Purpose Saltfree Seasoning and Sweet & Smoky Sea Salt, expanding the range to eight seasonings. Thrilled by her win at the 2011 Blás na hÉireann Irish Food Awards in Dingle (she scooped a bronze award for her Fresh Herb Sea Salt), Edel Cooney (pictured) has new distribution agreements in place with Simply Wild and Wholefoods Wholesale Ltd, which will see Simplee seasonings cementing a national market presence. See www.simplee.ie for more information.
THERE have been two key appointments at Gala Retail Services. Ben McGinn (left) has been appointed to the role of Fresh Food Manager, while Billy Massey (right) has been named Development Manager. With an excellent background in fresh food management, including 10 years with Kerry Foods, Ben will manage and support all aspects of fresh food within the Gala Group, responsible for innovation, training and advice to Gala retailers and their staff. With a particular emphasis on introducing new retail businesses to the brand, Billy will play a central role in developing the Gala Retail Stores network across Ireland. MAGAZINES Ireland is hosting a lunch on ‘Managing Costs to Fund Your Future Success’ on Tuesday, August 28, 2012 at 12.30pm at Clyde Court Hotel, Lansdowne Rd, Ballsbridge, Dublin 4 (formerly the Berkeley Court Hotel). The presentation will be delivered by Brian Turbitt, Director, Expense Reduction Analysts (ERA), Ireland, who will explain how ERA work in partnership with company directors and senior management teams to develop and implement bespoke procurement solutions. The vast majority of ERA clients engage them using the contingency fee structure which means there is nothing to pay unless actual savings are delivered. The event is free to Magazines Ireland members and costs non-members €49. Please contact grace@magazinesireland.ie to reserve a place.
TOGETHER We Can, a campaign announced by Purina in May to encourage dog and cat owners to recycle their steel pet food cans, has raised over €12,000 for the Dublin SPCA. Pet owners are asked to register or login at www.purina.ie/recycle and state how many cans they have recycled or intend to recycle. They also have the chance to win €2,200 off their energy bills by entering a unique code found inside multipacks of Winalot and Felix cans. Enda Gorman, Country Category Manager, Purina Ireland, is pictured with Suzanne McGovern, Dublin SPCA and ‘Boo’. CONGRATULATIONS to Mairead Hayes, Mace, Ballylanders, Co.Limerick, who is the winner of the weekend for two in the Radisson Hotel, Galway, in the Retail News/Hotel Solutions competition.
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