Retail News JULY / AUGUST 2020
Ireland’s Longest Established Grocery Magazine
Distributed by Barry & Fitzwilliam All Registered Trade Marks, used under licence by Mark Anthony Brands International Unlimited Company.
Enjoy White Claw Hard Seltzer Responsibly.
Retail News|July / August 2020|www.retailnews.ie|1
Contents News
Sustaining our future SUSTAINABILITY has been much more than a buzz-word for some time now, as consumers increasingly want to align themselves with brands who share their beliefs about protecting the future of our planet. The B Corporation movement has grown exponentially around the world, whereby businesses are independently certified to confirm that they meet the highest social and environmental standards, balancing profit and purpose. Danone Dairy Ireland was the first Irish FMCG company to become B Corp. certified: we talk to Conor Byrne, the company’s Head of Sales, to find out about their first year as a B Corporation and why other Irish grocery companies should think about joining the movement (Page 16). With so many Irish families staycationing this year, there’s a real opportunity for retailers to capitalise on increased off-trade sales. Jean Smullen reveals the country’s Top 20 wine brands, highlighting some of the muststock bottles for the summer (Page 29). While the off-trade is enjoying a strong year, Ireland’s foodservice sector has been badly hit by the lockdown. A Bord Bia White Paper examines possible scenarios, from best to worst case, and points the way for the recovery of the foodservice sector post-pandemic (Page 48). Elsewhere, the PSA advises on the impact of Covid-19 on the security industry, with potential repercussions for your store (Page 44), and Simon Hedaux continues his series of articles helping to make your shop more efficient (Page 40). Kathleen Belton Editorial & Marketing Director
Retailers prepare for plastic-free future.
3
Ireland surpasses 2019 recycling and recovery targets; WEEE warns of recycling difficulties.
4
2020 Irish Quality Food Awards to be presented virtually; Guaranteed Irish collaborates with tech firms to grow SMEs’ online sales.
5
Irish consumers spend an additional €628m on groceries in lockdown.
6
Love Irish Food launches new food industry awards; Danone announces landmark carbon neutral certification of baby formula plant.
7
Cashless is crucial as Irish consumers look to support local businesses; Appointments at C&C.
8
Aldi donates non-surplus food to FoodCloud; New chair for Prepared Consumer Foods Council; AAI appoints new President.
16
Danone Dairy Ireland recently celebrated its first anniversary as a B Corporation accredited business. Cormac Byrne, Head of Sales, explains why B Corp. is a fundamental part of the company’s ethos and why other companies should sign up to this new way to conduct business.
16
Covid-19 Pandemic 20
22
Ferrero is giving retailers a fresh addition to its popular Kinder Chilled line-up with the launch of Kinder Choco Fresh.
On the Vine: Ireland’s Top 20 Wines 29
Jean Smullen examines the 20
40
Simon Hedaux, founder and CEO of Rethink Productivity, advises retailers on how to create the ultimate shopfloor team, including the do’s and don’ts of managing deliveries.
Security
The Private Security Authority has some important advice for retailers about ensuring their security staff and systems comply with legislation; failure to do so could invalidate your insurance.
Security: Cash Solutions 46
Closed cash management is a method of dealing with cash which not only addresses store security concerns, but also the efficiency of retail cash processes.
Foodservice 48
Bord Bia’s foodservice industry White Paper details the devastating effect of the Covid-19 pandemic on the sector, and equips the Irish food and drink industry with forecast data and possible scenarios as they plan for the future.
Packaging 52
David Little, Chair of the Irish Packaging Society, examines the impact of the Covid-19 pandemic on on Ireland’s packaging industry, and what it could mean for the FMCG packaging of the future.
52
Packaging: Technology 54
Stora Enso believe that technology is the answer to making operations such as packaging ‘greener’ for retailers.
Regulars & Reports @RetailNews1
Managing Director: Patrick Aylward Editorial & Marketing Director:
Published by: Tara Publishing Ltd,
Kathleen Belton
kathleenbelton@retailnews.ie
14 Upper Fitzwilliam Street, Dublin 2.
Editor: John Walshe
johnwalshe@tarapublications.ie
Tel: 00353 1 6785165 Fax: 00353 1 6477127
Sales: Brian Clark
brian@retailnews.ie
Web: www.retailnews.ie Email: info@retailnews.ie
Sales: Aaron Stewart
aaron.stewart@retailnews.ie
Subscription to Retail News: e95 plus VAT Email: morgan.stokes@tarapublications.ie
Production: Morgan Stokes
Stafford Bonded has been providing bonded warehousing solutions for four generations, and has recently taken on a new mantle with the huge growth in popularity of Irish whiskey.
Retail Efficiency
Chilled Snacks
facebook.com/RetailNews1
Graphics: John Sheridan Printed by: W&G Baird
38
New research from FMI into shopping habits during the Covid-19 pandemic revealed some interesting results, particularly for online grocery sales.
Ireland’s Longest Established Grocery Magazine
Wine Correspondent: Jean Smullen
Warehousing, Distribution & Bonded Services
44
The Retail News Interview
Retail News Chief News Reporter: Pavel Barter
best-selling wine brands on the Irish market, including their latest innovations and promotions for summer 2020.
2
Reproduction without written permission is strictly prohibited.
10
Industry News
24
Retail Ireland:
Monthly Update
26
Drinks News
56
What’s New
2|Retail News|July / August 2020|www.retailnews.ie
News
Retailers prepare for plastic-free future IN line with environmental directives in the new Programme for Government, retailers are preparing for a plastic-free future. Retailers are ready to play their part in the phasing out of single-use plastics. The ambition is set out in the Programme for Government, a long list of actions agreed between Fine Gael, Fianna Fáil and the Green Party. The programme’s National Waste and Circular Economy Action Plan incorporates the European Commission’s goal to ban single-use plastics by 2021. “The retail sector is committed to play its part in the development of a sustainable circular economy, and in many instances the sector are leaders in this space,” said Arnold Dillon, Director of Retail Ireland. Tara Buckley, RGDATA Director General, said a proposal to ban singleuse plastic was contained within her organisation’s submission to government. “We thought they should ban all single-use plastic bags, and there could be a phased banning of other types of single-use plastics. The reason for that was to give manufacturers and producers more time to come up with new and better ideas,” Buckley told Retail News. Repak, Ireland’s not-for-profit recycling organisation, pledged its commitment to “implementing the actions required under the Packaging and Packaging Waste Directive and Single-Use Plastics Directive, and is working with its members on numerous programmes to reduce or
Arnold Dillon, Director of Retail Ireland.
eliminate single use plastics”, according to a spokesperson. Repak’s Plastic Pledge initiative, which has 115 Repak member signatories, committed to over 200 programmes to reduce plastic and increase the recyclability of plastic, while minimising food waste. In 2019, these programmes “removed over 16,100 tonnes of plastic from the Irish market and used over 21,000 tonnes of recycled plastic in production”. Some retailers are following suit. For example, Aldi Ireland recently announced a commitment to reduce its volume of plastic packaging by 50% before 2025. Yet the problem of plastic packaging - and corresponding plastic pollution, particularly in the waters around Ireland - continues. This month, environmental groups Voice Ireland and Friends of the Earth launched The Sick of Plastic Campaign, directed at Ireland’s five biggest supermarkets: Tesco, Dunnes Stores, SuperValu, Lidl and Aldi. As part of the campaign, shoppers send postcards to their local supermarkets, calling for an end to single-use plastic. The extent of single-use plastics may pose an obstacle, according to Vincent Jennings, CEO of the Convenience Stores and Newsagents Association. “Even the coins that we receive from banks are contained in plastic wraps. If there are alternatives, what environmental impact will they have? There’s no point in swapping one environmental damage for another,” he noted. For Mindy O’Brien, an environmental attorney and co-ordinator at Voice Ireland, the first place to start is to remove plastic packaging around fruit and vegetables. “We need a competitive price, so the loose vegetables are just as cheap as pre-packaged ones,” said O’Brien. “A lot of supermarkets tell me they package things to prevent food waste. In fact, they are forcing food waste onto the consumer. I don’t think bagged carrots preserve any better than loose carrots, so people are just buying more than they need. Does a net of onions really preserve the integrity of the onion? No.” Package-free alternatives are springing up across Ireland, suggested
Tara Buckley, Director General of RGDATA. O’Brien. “We have package free shops and zero waste shops. It’s a very niche market, though, so we need to mainstream it.” One ambition is for consumers to start bringing their own containers to grocery stores. “In other countries, shops provide containers, which you can either reuse or you bring it back; they wash it and you get a new one. That would deal with HACCP requirements,” said O’Brien. This might work for items such as washing up liquid and dry pasta. “In the 1970s, we used to buy things in bulk,” noted O’Brien. “You would bring your own container, buy the product, weigh it, and bring it home. Why don’t we go back to that? Why do we have to pre-package everything?” The Programme for Government proposes a reform of labelling to “better inform consumers about the carbon footprint of products” and announces an intention “to introduce a deposit and return scheme for plastic bottles and aluminium cans”. Some European countries incorporate a 20% deposit into the price of cans and bottles, which is then refunded through reverse vending machines in retail outlets, in the form of vouchers that can be spent in the shop. Where shops do not have space,
Retail News|July / August 2020|www.retailnews.ie|3
News they take the cans manually. The Single Use Plastics Directive, which will be transposed into Irish law in 2021, sets new targets - 77% by 2025 and 90% by 2029 - for the separate collection of plastic bottles and aluminium cans, which poses inevitable challenges for retailers. Repak told Retail News it will increase recycling rates through the existing household collection system, coupled with targeted initiatives with Tidy Towns and Vincent Jennings, CEO, sports clubs to achieve the CSNA. 77% recycling target by 2025. “Achieving the 90% recycling target will require innovative and additional collection systems,” admitted the Repak spokesperson. Retail Ireland argued that any decisions on deposit and return schemes must be made “in conjunction with the sector and must take into account the practical difficulties that it presents to retailers, such as the positioning and operation of the facilities,” said Dillon. Some retailers believe that such a scheme would require an economic impact analysis, due to its potential cost in a country that
Ireland surpasses 2019 recycling and recovery targets IRELAND surpassed all of its EU recycling and recovery targets in 2019, achieving a total provisional forecast recovery rate of 96% and a recycling rate of 67.5% subject to EPA verification in due course. The recycling rates were as follows: Plastic 35% (EU target: 22.5%), Paper 82% (EU target 60%), Glass 78% (EU target 60%), Metal 85% (EU target 50%) and Wood 81% (EU target 15%). The news was announced by Repak at the launch of its 2019 Annual Report. In 2019, the total amount of Repak funded material recovered Séamus Clancy, Repak and recycled in Ireland reached the CEO. one million mark for the first time. A total of 1,008,130 tonnes of packaging waste placed on the Irish market was recovered and recycled, 103,881 tonnes more than the 2018 (11.5%) increase. Recycling levels increased by 42,000 tonnes (7%) to 678k tonnes and recovery tonnes increased by 62,340 (23%) to 333,279 tonnes. Commercial recycling increased by 17k to 379k tonnes - a 5% increase, and household recycling increased by 25k tonnes to 299k tonnes - a 9% increase. “2019 was once again a strong year for Repak as we delivered for members on all key compliance objectives and surpassed all EU packaging recycling targets,” noted Repak CEO, Séamus Clancy. “Over the last five years, Repak has transformed from a compliance scheme into a leading environmental organisation, successfully managing and funding the continuous growth of recycling and recovery rates across all key materials. We have demonstrated that as a Producer Responsibility Initiative, we have brought together our Members, Recovery Operators, Central Government and National Regulators to achieve the optimum recycling and recovery rates for packaging waste.”
already has a green bin and a bottle bank system. “The percentage of our bottles being recycled is high,” said Buckley. “Will consumers continue to do that [following the introduction of a deposit and return scheme], or will they change habits and start bringing bottles back? You might end up spending a lot more money to get a tiny increase on your recycling rate.” Jennings said the most successful schemes “show a level of consideration to the supply chain. [One scheme in] New York is incredibly successful. Part of the reason is that the retailers are properly rewarded for their participation.” Phasing out single-use plastics faces a hurdle at the moment, due to concerns over Covid-19. “Consumers are looking for more single-use plastic at the moment,” noted O’Brien. “You notice when you go into a convenience store or supermarket, a lot of items that were previously sold loose - fruit, veg, pastry, bread - are put into bags.” Such concerns are likely to be temporary, but O’Brien believes that it is important to introduce relief from liability for retailers, particularly when customers are bringing their own reusable cups and containers into shops. “We need something on a government level to reduce liability,” she said. The Programme for Government sets out its ambition for retailers and producers to end self-compliance as an option around waste recycling. Repak told us it “is fully in support of this measure, which will help to level the playing field considerably and ensure that more businesses play their part in funding the recycling of packaging they place on the market.” Ultimately, retailers are on board with the phasing out of single-use plastics: as long as there is a level playing field. “We’re absolutely in favour of dealing with this issue in a way that ensures it is fair across all sectors,” noted Buckley. “We think a ban is better than levies. Introduce a ban, set a date, and everyone is in the same position.”
WEEE warns of recycling difficulties DIFFICULTIES in recycling electrical waste from household clearouts during lockdown could derail Ireland’s compliance with EU targets after a record year, the country’s largest recycling scheme has warned. WEEE Ireland was the second-best performing recycling scheme in Europe in 2019, with 38,594 tonnes of waste electrical items and the equivalent of over 44m used AA portable batteries collected, its annual report has revealed. A new national record of 10.89kg of e-waste was recycled per head of population last year by WEEE Ireland, on behalf of over 1,114 members and partners – a rise of 6.2% on 2018. The scheme was one of the few in Europe to meet a landmark EU environmental directive target to recover the equivalent of 65% of the average weight of all new electrical equipment placed on the market by its members over the three preceding years. However, its CEO claims that the country could struggle to meet the 65% benchmark figure this year if an expected glut of waste electrical items is not diverted from landfill. “Households throughout the country have used the lockdown to carry out extended spring cleaning, and it is vital that these end of life electrical items do not end up in landfill, or worse, illegally dumped, destroying the progress that we have made as a nation,” said WEEE Ireland CEO, Leo Leo Donovan, CEO, WEEE Ireland. Donovan.
4|Retail News|July / August 2020|www.retailnews.ie
News
2020 Irish Quality Food Awards to be presented virtually THE Irish Quality Food Awards are going ahead as planned this year, although the Covid-19 pandemic has led the organisers to cancel the annual awards dinner this year, with the awards to be presented virtually instead. “Due to ongoing social distancing regulations, especially when it comes to large gatherings, we have made the difficult decision that our physical Awards Ceremony due to take place on October 29 at the Clayton Hotel will not go ahead this year,” noted Beth Treleaven, Business Development and Key Account Manager, Irish Quality Food Awards. “Whilst we would have loved to celebrate the best of Irish food and drink with you in person, the health and safety of our guests, and that of our own teams, is our number one priority. For 2020 only, we will announce the winners as part of special virtual series. “We are really disappointed that we won’t be able to celebrate in person this year, but we are so pleased we will still be able to reward some fantastic Irish produce and celebrate after a tough year for everyone!” Since their launch eight years ago, the Awards have been responsible for launching hundreds of innovative new products onto the market and boosting the sales of many more. Retailers, wholesalers, foodservice, own label and branded producers can enter food and drink products into a broad range of categories; each being specifically tailored to represent the key drivers in today’s ever-changing marketplace.
The Irish Quality Food Awards This year sees the introduction of a number of champion awards which will be presented alongside the existing Retailer of the Year and Christmas Retailer of the Year accolades. Retailers will automatically qualify for these awards based on best performance across selected product categories. Judging for this year’s awards has been moved to September 3-11 and will take place at Cooks Academy, Dublin.
Guaranteed Irish collaborates with tech firms to grow SMEs’ online sales GUARANTEED Irish has launched a collaborative initiative to enable Irish based SMEs and retailers to enhance their digital capability and to develop a more competitive online offer. The new initiative, in partnership with leading tech firms Magico, IE Domain Registry, Blacknight and eShopWorld, offers Guaranteed Irish member businesses the exclusive opportunity to avail of a full website consultation service and ecommerce review for all member SMEs and large-scale enterprises based in Ireland. The initiative comes as the Government expands the Trading Online Voucher Scheme by €14.2m as part of its ongoing Covid-19 response following unprecedented demand for the Scheme, with a record three years’ worth of
Brid O’Connell, CEO, Guaranteed Irish.
applications received in just three months from mid-March to June this year. The purpose of this new initiative by Guaranteed Irish is to enable Irish based retailers to enhance their online and offline offerings to meet the expectations of post-pandemic consumers in building a more sustainable business in the domestic and global marketplace. Irish consumers have grown accustomed to the accessibility and convenience of eCommerce services offered by global corporate firms and expect the same shopping experience from their local businesses, according to IE Domain Registry, the national registry for .ie domain names. “We are delighted to see such support being made available to businesses based here in Ireland who support jobs, local communities and the Irish economy,” said Brid O’Connell, CEO, Guaranteed Irish. “This global pandemic has forced businesses that have procrastinated about eCommerce to go online to survive. Guaranteed Irish is encouraging all members to continue to trade and to reach out to other businesses and support services to help them engage online.” Paul Montwill, Managing Director, Magico, said, “Online sales technology is becoming more affordable and easier to implement, whilst the benefits of remote working technology have been brought to the fore like never before. We are delighted to partner with Guaranteed Irish to guide businesses though the process of setting up an online sales presence at a time when consumer trends are changing.”
Retail News|July / August 2020|www.retailnews.ie|5
News
Additional €628m spent on groceries in lockdown MARKET SHARE - TOTAL GROCERY THE latest figures from Kantar show Includes expenditure across Food, Beverages, Alcohol, Household and Health & Beauty categories take-home grocery sales in the Republic of Ireland increased by 24.7% Total Take Home Grocery - Ireland Consumer Spend in the 12 weeks to June 14, 2020, 12 Weeks to 16/06/19 12 Weeks to 14/06/20 % Change in value sales encompassing the entire lockdown %* %* % period. This additional spend adds up Total Outlets 100.0% 100.0% 24.7% to €628.7m on grocery items, but some retailers will still be feeling the impact Total Multiples 89.2% 89.0% 24.3% of a decline in other categories like Dunnes 22.1% 20.5% 15.4% food on-the-go and clothing. Tesco 22.0% 21.5% 22.2% Growth accelerated slightly in the SuperValu 21.2% 22.9% 35.2% most recent four weeks to 25%, just behind last month’s record level, as Aldi 12.3% 11.9% 20.4% Ireland moves into the next stage of its Lidl 11.7% 12.2% 29.7% lockdown. Other Outlets** 10.8% 11.0% 27.7% “We haven’t quite shaken off the habits of lockdown life just yet – people * = Percentage Share of Total Grocers are still making fewer, larger trips to ** = Includes stores such as M&S, Boots, Spar, Centra, Greengrocers, Butchers and Cross Border shops Source: Worldpanel FMCG the supermarket. But there are signs that Irish shoppers are taking their Over 40% of Irish shoppers are from them, Healy explained, as they take first tentative steps back to normality,” now shopping closer to home and heed of advice from the grocers. Nearly explained Emer Healy, Retail Analyst independent outlets are benefiting from 40% of shoppers said this is the main at Kantar. “As restrictions start to ease, this, growing sales by 44.8% during the reason they haven’t ordered groceries including the lifting of limits on travel, 12-week period. People are depending online during the lockdown, according to people are growing more confident and on local suppliers more and they spent Kantar’s LinkQ survey of 3,259 people in the number of shopping trips inched up an additional €2.4m at greengrocers and Ireland between May 15 and 25. slightly in the most recent four weeks, €11m at butchers compared with the “Despite the growth, it certainly by 2.3%. When in-store, shoppers are same period last year. isn’t the beginning of the end for bricks continuing to buy more than in normal SuperValu continues to feel the and mortar outlets – 63.6% of people times and the average person has spent advantage of its large store estate, still haven’t shopped online and don’t €204 extra this June than last year, on combined with this change in shopper intend on doing so in the future,” Healy average €30.77 each trip. behaviour, holding the highest share of revealed. “There are indications of cautious the market at 22.9% and achieving the People are continuing to find ways to optimism in Ireland. Despite the months fastest year-on-year growth of 35.2% mark special occasions during lockdown of lockdown, 40% of Irish consumers during the latest 12 weeks. SuperValu and socialise at home or in open public say they feel financially comfortable and also remains the only retailer not to spaces. Take-home alcohol sales that’s reflected in how they are shopping. experience reduced footfall in the last continue to boom, up 93% in the most With some of the usual ways to treat 12 weeks and welcomed an additional recent four weeks. In the week leading themselves off limits, they’re trading 53,000 shoppers into its stores. up to the June Bank Holiday, shoppers up to branded goods in-store, spending Elsewhere, Tesco’s sales grew spent an additional €60m on take-home an additional €381m on these products by 22.2% to hold a 21.5% share. This was driven by consumers significantly grocery categories, and a third of that compared with last year.” increasing the amount they buy each trip was on alcohol. Online demand continues to soar, – picking up five additional items each “We’re all missing our favourite with an additional 99,000 households visit and spending more as a result. restaurants and people trying to recreate receiving a delivery in the latest 12 Dunnes’ customers also added more those experiences at home meant sales weeks. “An extra €70.9m was spent to their baskets during this period, an of ethnic ingredients such as curry online during the past 12 weeks, which additional five items per trip, and spent pastes, coconut milk and Mexican meal is a year-on-year increase of 114.3%,” an extra €14.23 per trip compared with kits were collectively 34% higher this Healy revealed. “Retailers will now be last year, generating strong overall month,” Healy added. “While brunch looking ahead and thinking how they can growth for the retailer of 15.4%. lovers pushed bacon sales up 25%, retain new online shoppers when things Lidl boosted its sales by 29.7% while eggs up 36% and sausages up 35% return to normal. The answer to that is Aldi’s were 20.4% higher than last year, year-on-year. People are also starting likely to be in different demographics – generated by customers doing larger to enjoy the freedom of meeting friends retired households for example, where shops at both retailers. Lidl continues to experience its strongest growth in Dublin and family outside of their home and their share of online grocery sales now and Aldi from Munster. picnic favourites were in high demand. sits at 14.1%.” Grocery market inflation stands at Compared with last year, sales of dips Younger consumers appear to be 2.8% for the 12-week period ending June were up 25%, soft drinks 42% and crisps holding back from online orders so that 14, 2020. 52%.” more vulnerable groups can benefit
6|Retail News|July / August 2020|www.retailnews.ie
News
Love Irish Food launches new food industry awards LOVE Irish Food, in partnership with Core and Media Central, announces the launch of the 2020 Double Up Awards. As Ireland faces one of its biggest economic challenges in the wake of Covid-19 and ahead of a damaging Brexit, these three organisations have come together to help Irish produced food and drink brands fight back and command more consumer attention in 2021. The awards will give five Irish food producing companies a Double Up of €200,000 in radio airtime. This means that the selected companies will have their radio advertising spend doubled in 2021. Winners will have their bought radio spend of €40,000 in Q1 2021 doubled by €40,000 in free airtime in Q2 2021, across Media Central radio stations, to include Newstalk, Today FM, and others. This award is open to both Love Irish Food members and non-members. Companies had to register on www.loveirishfood.ie by July 24, followed by a submission by August 29, detailing in 1,500 words or less why this campaign should be awarded to their brand. Entrants will need to present a sound business and marketing case, with the winners being the brands deemed to benefit most from the award. “Love Irish Food is a strong supporter of all Irish manufactured food and drink brands,” noted Kieran Rumley, Executive Director, Love Irish Food. “At a time when Covid-19 and Brexit have added much so much uncertainty to the market, this Double Up award allows the winners
the certainty of knowing that they have an increased advertising campaign for their brand in their plans for 2021. It is now critical to support locally owned and operated food businesses and this award will give brands a huge opportunity to connect with their target audience and double their voice to the market.” Gavin Deans, Managing Director, Media Central, said: “This is a very difficult time for Irish retail, Irish food producers and Irish food manufacturing and it is hugely important that we support this Irish industry and other locally owned businesses in every way that we can. We hope this initiative can do just that by allowing the winners to reach a much wider audience, over a longer period, across our network of stations than might otherwise have been possible and provide a base to build on in 2021.” Kieran Rumley, Executive Director, Love Irish Food.
Danone announces landmark carbon neutral certification of baby formula plant DANONE’S facility in Wexford is the first baby formula production site in the world to be certified carbon neutral by the Carbon Trust, an independent global climate change and sustainability consultancy. This industry-leading milestone is a step towards achieving the company’s goal of zero net carbon emissions by 2050 and illustrates how Danone executes on its One Planet. One Health frame of action, to protect the health of people and that of the planet. Danone Wexford is located in one of the world’s leading sustainable grass-fed dairy sectors and employs 350 people. It produces leading brands like Aptamil, Cow & Gate and Nutrilon for consumers in 41 countries around the world. “At extraordinary times like the one we are living at the moment, it is more important than ever to protect the local ecosystems where we operate and create sustainable value for everyone,” explained Emmanuel Faber, Chairman and CEO of Danone. “Our One Planet. One Health frame of action puts climate at the core of our growth
Between 2010 and 2020 Danone transformed its Wexford site into a carbon neutral facility whilst doubling production volumes.
model. The carbon neutral certification of Danone Wexford is an excellent illustration of implementing climate action to protect health of the planet and of the people. It is also a step towards realising our commitment to achieving zero net carbon emissions across our entire value chain by 2050 and I truly want to congratulate our people in Wexford for realising an ambitious vision set more than 10 years ago. This is only a first step and we should accelerate even more to create a low-emissions, climate resilient future. It is through key investments like this one that we take a step forward towards reaching this ambition.” The Wexford plant sustainably manufactures high-quality baby formula by: • Curbing carbon emissions: the plant sources 100% renewable electricity and uses a biomass boiler powered by sustainable wood fuels. This has resulted in 10,000 tons of CO2 savings compared to the plant’s emissions in 2010, representing a 70% reduction in its direct carbon footprint, whilst doubling its production volumes since then. Since the end of 2019 the remaining direct carbon emissions of the plant have been fully offset with Gold Standard certificates. • Implementing digital technologies for efficiencies and sustainability performance: the facility has developed a digital roadmap, which includes a significant number of initiatives to become a paperless site, using drones for monitoring inventory and innovative technologies for monitoring energy. • Supporting local economy: the sustainable wood fuel powering the boiler is sourced from the local wood chipping industry, also delivering a positive economic impact in Wexford. • Contributing to regenerative agriculture practices in Ireland as a verified member of Origin Green. • Achieving zero-waste to landfill: all waste from production processes or packaging materials is recovered.
Retail News|July / August 2020|www.retailnews.ie|7
News
Cashless is crucial as Irish consumers look to support local businesses NEW research from PayPal, conducted by Ipsos and involving 2,000 consumers in Ireland, reveals that cashless will be crucial as Irish consumers look to support local businesses following the Covid-19 lockdown. The survey revealed that 81% of Irish consumers believe supporting the local economy is key to emerging from the current crisis and 66% of Irish consumers plan to buy more local or regional products in the future. However, while the trend looks set to be shopping locally and in-person for the foreseeable future, with over half (57%) of respondents preferring faceto-face services, cash appears to have fallen out of favour for the majority of people. A cashless approach is important for almost two thirds (65%) of Irish shoppers. In fact, 39% do not want to use cash going forward – that translates to more than 1.9m people. Some 67% of shoppers revealed they are open to trying new contactless methods in shops, with 61% preferring to avoid touching a card reader pad when making purchases. Despite the increasing popularity of online international shopping in Ireland in recent years, the study showed that people have chosen to support local shops and smaller businesses during the Covid-19 pandemic. Smaller businesses and stores were found to be the most popular option for consumers throughout the lockdown, with almost two thirds (62%) choosing them in order to support their local and the national economy. Other popular reasons cited for doing so were that consumers had made purchases in these shops previously (38%) and it was faster to get the product (29%). Three quarters (75%) of people are more conscious of the importance of community and working together, with older respondents (81%) more mindful of this than younger ones (69%). Clearly, the importance of community has been heightened recently and is having an impact on behaviours, with almost one in six people in Ireland doing grocery shopping for relatives or neighbours during the Covid-19 crisis. Furthermore, one in 20 people have taken to making or selling products, such as face masks, due to the emergence of Covid-19. “The Covid-19 lockdown impacted
Annette Hickey, Vice-President for Europe, the Middle East and Africa, Customer Services, PayPal. everyone and many uncertainties still remain, but there is a silver lining in that communities are coming together in Ireland and supporting each other – not just people helping others but also spending with local businesses and retailers,” noted Annette Hickey, VicePresident for Europe, the Middle East and Africa, Customer Services, PayPal. “This will continue to be vital as we move forward and take steps towards economic recovery, but change is needed. As our research shows, consumers want to invest in the regions where they live but there is a demand for new ways of shopping and paying, as can be seen with
the large proportion of people who don’t want to use cash or touch a card reader. “With more than 1.35m customers in Ireland, we know how important it is for people to be able to manage, move and spend their money how they want and via the methods they choose. So, as well as implementing measures to help facilitate socially distanced shopping, businesses need to enable people to purchase goods in different ways in-store or, alternatively, buy online. In doing so, together we can overcome the obstacles posed by the pandemic and create a brighter future, a safer experience and a stronger Ireland.”
David Forde Appointed as Group Chief Executive Officer of C&C Group C&C Group plc has announced the appointment of David Forde as Group Chief Executive Officer. Forde joins C&C from Heineken, where he has served as Managing Director of Heineken UK for the past seven years. He will join C&C at the latest in early 2021, following the completion of a customary notice period. “I am extremely excited to be joining C&C, a company with great people, loved brands and a world class distribution infrastructure,” said Forde. “I look forward, together with my new colleagues and the Board, to further building the business into the future.” C&C also announced the appointment of Patrick McMahon, current Group Strategy Director, as Group Chief Financial Officer to succeed Jonathan Solesbury, who has informed the Board of his intention to retire on David Forde, Group Chief Executive September 1, 2020.
Officer, C&C Group.
8|Retail News|July / August 2020|www.retailnews.ie
News
Aldi donates non-surplus food to FoodCloud ALDI Ireland has become the first retailer to donate non-surplus food to FoodCloud during the Covid-19 pandemic to help with the unprecedented demand on FoodCloud’s services from charities. FoodCloud has experienced a huge surge in demand for its food redistribution services in recent months. Between March and June, charities sought 44% more food donations compared to the same period in 2019, with 968 tonnes of food, equating to 2.3m meals, distributed through retail partners and FoodCloud hubs during this time. With such heightened demand, it has been necessary for FoodCloud to source and distribute non-surplus food for the very first time in its seven years of operations, with Aldi also stepping in for the first time to provide additional support in a new way. As a direct result of Aldi’s donation, FoodCloud was able to partner with Local Development Companies early in the pandemic to support 17 new food hubs in 15 counties, meaning it could reach more charities and provide meals
for more people in need across Ireland as Covid-19 took its toll on communities. June 2020 witnessed an all-time record peak in charities seeking FoodCloud’s help, with donations to charities up 64% compared to 2019. During June, FoodCloud donated 274 tonnes of food, the equivalent of 652,000 meals, through retail partners and dedicated FoodCloud hubs, saving the equivalent of 877 tonnes in CO2 emissions. In addition to ongoing surplus food donations, Aldi has also supported FoodCloud financially through a donation of €50,000 of food, equating to an extra 4,000 meals a week. The food donations of cupboard essentials such as rice, pasta and tinned goods for communities and individuals in need. “We are committed to working with FoodCloud to help combat food poverty,” explained John Curtin, Aldi Group Buying Director. “The organisation needed nonsurplus food donations for the first time, in the face of growing demand on its services from charities. Covid-19 has put increasing pressure on us all, and Aldi is delighted to have been able to assist
AAI appoints new President THE Association of Advertisers in Ireland (AAI), the national advocacy group for promoting the interests of advertisers, has appointed Derek Liddy as its new President. Derek is Derek Liddy, President, currently AAI. Head of Digital Marketing at Aer Lingus, and has over 20 years’ experience in developing digital strategies and marketing, as well as TV and video communications. “Having previously served on the board of the AAI, I’m very aware of the important work the association does to maintain and develop a vibrant advertising industry here in Ireland,” Liddy said. “I’m looking forward to working with all my colleagues at the AAI to champion Irish advertisers and brand marketers.”
John Curtin, Aldi Group Buying Director. FoodCloud. We can see the ripple effect that comes from that with FoodCloud working with the Local Development Companies to now support 17 new food hubs across the country, which in turn are helping even more people in need.”
New chair for Prepared Consumer Foods Council FOOD Drink Ireland (FDI), the Ibec group that represents the food and drink sector, has announced Kevin Donnelly, Managing Director, Britvic Ireland, as the new Chair of the Prepared Consumer Foods (PCF) Council. He will be joined by a new Vice-Chair, Andrew Shaw, Country Manager for Nestlé Ireland. Linda Stuart-Trainor, Director of Prepared Consumer Foods in FDI, welcomed Kevin to his new role: “Kevin is a recognised industry leader, with a wealth of experience in FMCG. Together with Andrew Shaw, the incoming PCF Vice-Chair, he will bring a renewed energy to the PCF Council at a time when the sector has the potential to play a leadership role in the move towards sustainable practices, offering greater consumer choice and providing exciting employee opportunities.” Kevin explained how he is delighted to take on the role “at a time of significant change and challenge, economically and politically. Since the onset of Covid-19, the PCF sector stepped up to the challenge of ensuring shops and homes stayed stocked with essential goods. As we look to the future, the focus of the PCF Council will be on the big sectoral issues – Brexit, Covid-19 impact and sustainability.” Kevin Donnelly, Managing Director, Britvic Ireland, and new Chair of the Prepared Consumer Foods Council.
10|Retail News|July / August 2020|www.retailnews.ie
Industry News Aldi trials on-demand delivery with Deliveroo ALDI is trialling on-demand grocery home delivery in Ireland for the first time in partnership with Deliveroo. The supermarket began offering a rapid delivery service from its East Wall store in Dublin 3, before extending the trial to Terenure in Dublin 6 from July 1. Customers can order from over 140 Aldi products through the Deliveroo app, which are then picked and packed by Aldi colleagues in-store, for delivery via Deliveroo’s network of riders. Aldi initially offered a range of essential items, such as bread, milk and fresh produce, to be delivered to customers’ doorsteps in as little as 30 minutes. If successful, the rapid delivery service could roll out to further Aldi stores by the end of 2020. “This is a new and exciting venture for Aldi and we will be constantly reviewing how we can best serve our customers and continue to provide them with the high quality products they are used to in store,” said Niall O’Connor, Group Managing Director, Aldi UK & Ireland (pictured).
Cork retailer celebrates selling Lotto winner
Increase in dairy consumption for under35s during lockdown
STORE owner Noel Murphy celebrates with staff members Sharon Lynam and Laura O’Leary at the announcement that the winning ticket for the Lotto jackpot worth €6,933,904 on June 20 was sold at Murphy’s Circle K service station on Vicar’s Road in Togher on the southside of Cork City. Owner of the winning store, Noel Murphy heralded the win as a tremendous boost to a community which has strongly come together during the current pandemic: “Anybody who knows the area surrounding Togher will know what a fantastic community we have here. Especially over the last number of months, we have been reminded of that great community spirit that we have and knowing that one of these people has won almost €7m is truly heart-warming.”
ALMOST 40% of Irish consumers under the age of 35 have increased their dairy (milk, cheese and yogurt) consumption since the beginning of the Covid-19 lockdown, as families and households have sought nutritional value, local natural produce and assurance of quality during uncertain times. While 91% of Irish consumers still think we can prevent all or most of the catastrophic consequences of climate change, when it comes to making food purchasing decisions, price (46%), nutritional value (34%) and healthiness (31%) trump carbon footprint (10%) and sustainable packaging (19%) concerns. These are some of the key findings of new consumer research of over 2,000 Irish adults released by the European Milk Forum, as part of its “Sustainable Dairy in Europe” campaign to gain a better understanding of consumers’ perceptions of sustainability, climate change and the challenges they pose in relation to the dairy sector. “In these unprecedented times, it is heartening to know consumers are seeking out dairy products because they know they can rely on their natural nutritional value and they can be assured of the quality of locally produced Irish dairy,” said Zoe Kavanagh, Chief Executive of the National Dairy Council and spokesperson for the European Milk Forum in Ireland.
Lidl Ireland announces €50m investment in Irish drinks industry LIDL Ireland recently announced a multi-million-euro investment in nine long-standing Irish suppliers that comes amid much uncertainty in the drinks industry due to the Covid-19 pandemic. The investment, totalling more than €50m, is the result of Lidl Ireland facilitating supply contracts with their counterparts in 27 countries, making their products available on the shelves of more than 10,000 Lidl stores in Europe and the USA. Among these partners is Celbridge-based Rye River Brewing Company, which will export more than 3.5m bottles of its craft beer to 21 European countries this year in a landmark deal facilitated by Lidl Ireland. “Developing and supporting our supplier network is at the core of our business, and we’re extremely proud to be in a position to showcase the sublime quality Irish suppliers have to offer on a global stage,” said Kevin Haverty, Buying Director, Lidl Ireland and Northern Ireland. Pictured are Tom Cronin, founder, and Peter Maguire, Sales Director, both from Rye River Brewing Company, with Kevin Haverty, Lidl’s Buying Director.
ePEN 3 STARTER KITS
NOW €10.00
RRP
AVAILABLE NOW ON: B2B.PJCARROLL.IE For adult smokers and vapers only. Vype e-cigarettes contain nicotine which is addictive. 18+ Only. Read leaflet in pack.
12|Retail News|July / August 2020|www.retailnews.ie
Industry News BWG launches biogas-powered delivery fleet BWG Foods has become the first FMCG group in Ireland to launch a fleet of biogas powered vehicles as part of the implementation of its ambitious sustainability strategy. The company launched an initial fleet of two Heavy Goods Delivery Vehicles fuelled with biogas in place of traditional diesel fuel, with ambitions to further increase the use of biogas as part of their increasingly environmentally-friendly fuel mix. The vehicles will deliver a 90% reduction in transport related carbon emissions. The launch of the biogas rigid 26-tonne fuelled trucks with electric fridge units, which each cost in the region of €180,000, follows a partnership between BWG and two Irish start-ups, VisionGreen and Generation Green. “We at BWG are very passionate about finding new solutions that can reduce our environmental impact and given the significant scale of our business, and the expansive supply chain operation that supports it, it is critically important that we invest in new technologies that allow us to pioneer less carbon intensive methods of delivery,” noted Joanne Mellon, Logistics Director, BWG Foods (pictured).
SuperValu & AsIAm launch autism-friendly learning resource
ADAM Harris, CEO of AsIAm, is pictured with James Moriarty, owner of SuperValu Skerries, launching the Bridge Back to School learning resource, developed by SuperValu and AsIAm with Mary Immaculate College to help those with high support needs prepare during the summer months to return to school in September. 20,000 copies of the autism-friendly learning resource for summer 2020 were available to pick up from SuperValu stores nationwide from July 6. “We are delighted to partner with Mary Immaculate College and AsIAm to develop this resource from the experienced knowledge of a pool of experts,” noted Martin Kelleher, SuperValu Managing Director. “SuperValu recognises the challenges for families as they prepare for the return to school and hope that this useful and practical learning resource will be an essential support for them over the coming months.”
Maxol-backed energy provider launches in Ireland IRELAND’S newest electricity provider has entered the market; Bright, which offers only 100% green energy, has been co-founded by energy entrepreneurs Ciaran and Stephen Devine in partnership with Maxol. The announcement marks Maxol’s move into the green energy sector. “Bright is the coming together of two family-owned businesses that are focused on sustainability and that is a very strong bond that has led to the launch of an exciting, tech-driven business that is future fit,” explained Brian Donaldson, CEO of Maxol. “A move into renewables is part of Maxol’s long-term diversification strategy and despite a hugely competitive market, we believe that the time is right and the market ready for a new, renewable energy supplier.” Brian is pictured (right) with Stephen and Ciaran Devine. For more information, visit www.brightenergy.com.
Kellogg launches Cúl competition FORMER Donegal GAA star and TG4 Cúl Camps TV show coach, Kevin Cassidy was on hand, with his children Aoife, Nia and Fionn, to launch a new Kellogg’s GAA Cúl Camps on-pack competition. Kellogg, now in its ninth year sponsoring the Kellogg’s GAA Cúl Camps, has launched the nationwide promotion for all GAA clubs across the country to be in with a chance to win prizes worth €40,000 – their biggest on-pack prize offering ever. To nominate their club, consumers pick up a promotional box of Kellogg’s Corn Flakes, Rice Krispies or Bran Flakes, use the unique on-pack code, log on to kelloggsculcamps. gaa.ie/competition and nominate their club of choice.
Jameson launches brand new musical mini-series JAMESON Ireland has launched Jameson Connects Presents: Uly, Nnic and R.Kitt; a digital mini-series that brings three incredible musical talents together to create an original track, entirely from scratch. The series sees three music makers joining together, from home, for an exclusive collaboration of word and sound, with all track revenue being donated directly to the Irish Refugee Council, an organisation who advocate for humane and dignified protection of people fleeing persecution. The trio of creatives merged their musical styles of neo-soul, jazz and electronica to create an original piece of material titled ‘Not Too Late’, showcased through the Jameson Connects platform and IGTV.
14|Retail News|July / August 2020|www.retailnews.ie
Industry News Aldi launches its first
ever gift card
Lindt Ireland appoints data specialists Talysis Ltd CHOCOLATE manufacturer Lindt & Sprüngli has appointed Talysis Ltd to provide the company with in-depth convenience retail sales data and insights for its Irish business. Talysis will supply Lindt with data, reports, and insight tools which will provide the company with a greater depth of understanding than ever before. “By working with Talysis Ltd, we can ensure we are receiving reliable, accurate and detailed sales data that we can trust, which enables us to clearly understand how our brands are performing within the Irish convenience market,” said Ciarán Owens, Marketing Manager for Lindt Ireland.
Tesco runs food appeal for those affected by pandemic
PICTURED is TV star Brian Dowling at Aldi Kildare for the announcement that for the first time ever, consumers can buy Aldi gift cards online as well as in all 142 stores nationwide. Customers can purchase gift cards online with free postage and packaging, and in store, from a value of €10 to €100. The gift card is redeemable at the till. Customers will then receive a receipt, which will show the amount paid via the gift card and the remaining credit balance on the card. “The launch of Aldi’s gift card is an exciting time for the business,” said John Curtin, Group Buying Director at Aldi Ireland. “We listen closely to customer feedback and this has been one of their top requests.”
Dealz opens three new
stores DISCOUNT retailer Dealz has opened three new Irish stores, bringing the portfolio in Ireland to an impressive 100 stores. Located in Rathfarnham, Dublin, Clonakilty, Co. Cork, and Buncrana, Co. Donegal, the new stores will create over 75 new jobs in Ireland with an investment of €1m. “Additional job creation and investment in new stores is part of our renewed commitment to Ireland and the communities we serve,” noted Dealz Retail Country Manager, Olivia McLoughlin.
TESCO Ireland recently ran a week-long food appeal, calling on the shoppers throughout Ireland to support the nationwide campaign by donating a food product when they shop in stores from July 13-19. The donations are subsequently being distributed through FoodCloud to local charities and food banks. “From our partnership with FoodCloud, we know that the demand for food from local community groups supporting those most in need is on the rise due to the Covid-19 pandemic,” noted Kari Daniels, Chief Executive Officer, Tesco Ireland (pictured). “With that in mind, we wanted to do more to help and and launched a seven-day Food Appeal in our stores.”
Appointment at Java Republic JAVA Republic has announced the appointment of Damien Smyth (pictured) as Head of Foodservice Sales. Damien has worked in the foodservice and wholesale industry for over 20 years, including Green Isle Foods, La Boulangerie des Gourmets and more recently, a 14-year stint with Musgrave Marketplace. “I have extensive knowledge of this industry that I wish to continue to share and a desire to continue learning,” said Smyth. “In this ever-changing market, successful people must have the ability to change and adapt to those changes and face them prepared, which I have done with great success to date.”
Walsh Whiskey raises €16k for Jack & Jill BERNARD Walsh, Founder & Managing Director of Walsh Whiskey, presents a cheque for €16,000 / 1,000 nursing hours to Joanne Doyle, Liaison Nurse with Jack and Jill Children’s Foundation. Bernard and Rosemary Walsh, founders of Walsh Whiskey (Writers’ Tears & The Irishman), set up a raffle and donated their personal collection of all nine vintages of Writers’ Tears Vintage Cask Strength, superpremium whiskey produced since 2011. When bottled later this year, the 2020 vintage will be added to the prize, which was won by Liam Boland from Dingle.
SUMMER IS
SMOOTHER MAYAUGUST*
SMOOTH CIGARETTE SECTOR*
11%
UPLIFT IN SALES*
TRUSTED FOR QUALITY & VALUE
* John Player estimates based on EPOS data from May – August 2018 & 2019 versus January – April 2018 & 2019.
16|Retail News|July / August 2020|www.retailnews.ie
The Retail News Interview
A new way of thinking about business Danone Dairy Ireland recently celebrated its first anniversary as a B Corporation accredited business. Cormac Byrne, Head of Sales, explains why B Corp. is a fundamental part of the company’s ethos and why other companies should sign up to this new way to conduct business. DANONE Dairy Ireland is celebrating one year as a B Corporation, an independently audited mark of trust that recognises its ambition to act beyond profit and put purpose at the heart of its business strategy. It was the first FMCG company to be certified in Ireland, and the second company in Ireland overall, to become a certified B Corporation, quite an achievement at a time when businesses are increasingly expected to take a stand on and respond to key issues facing society. Since the industrial revolution, capitalism has thrived in the western world on a system of maximising profits and returns for shareholders. So what is different about B Corp. certification and what makes it attractive to Danone? “I think B Corp. certification should be attractive to everybody,” stresses Cormac Byrne, Head of Sales, Danone Dairy Ireland. “We’ve just completed our first year as a B Corp. business and I’d like to call on the rest of the FMCG businesses in Ireland to maybe look at B Corp. seriously as a way
forward. For years, business has been built on profit, but B Corp. looks at people, planet and communities as just as important as profit for business.” An ethos of ethical business That ethos has been part of Group Danone, since its formation in 1919, Byrne insists. “The company was originally founded in Barcelona when Isaac Carraso saw the amount of children with intestinal problems and started selling yogurt through his local pharmacy. The company was born out of a desire to try to help people and that has remained a part of our mission ever since: B Corp. allows us to independently assess it and to put a structure on it. We are massively proud to be involved in B Corp.” The journey towards B Corp. accreditation is not just the right thing to do ethically, it also makes sense
from a business perspective, according to Byrne: “This is not just about Danone Dairy Ireland; consumers are looking for companies with purpose; they’re looking for the story behind the company, and that is influencing the businesses they choose. B Corp. is a community that will grow and grow.” Danone Dairy Ireland is keen to share information with any other Irish business who wants to understand what the B Corp. movement means. The company has been speaking to other companies about its B Corp. journey at events hosted by fellow B Corp., Patagonia, and is more than happy to do so, as Byrne explains: “Danone Dairy Ireland is willing to share the insights we have gained through B Corp. accreditation with anybody, to help them achieve accreditation as well, because it is the right thing to do for the planet, for the people and for communities. If we can
Retail News|July / August 2020|www.retailnews.ie|17
The Retail News Interview support any companies on that journey, we will.” Sustainability on a connected planet Climate change activism has moved from the fringes to the mainstream as more and more people realise the consequences if we continue to burn through natural resources with scant regard for future generations and the future of our planet. The chaos of the Covid-19 pandemic has also helped people all over the world to realise just how interconnected our planet is, Byrne feels: “It is more important than ever that people are doing the right thing and that companies are doing the right thing.” However, a business still has to be viable and shareholders still expect a return on their investment, so how does one balance this with the desire to do good in the community? “The reality is that consumers are very much looking for companies that are doing the right thing by the environment and by their customers, and if you do those things properly, you tap into consumer needs and you will continue to succeed. Shareholders realise this. From an investor’s point of view, they are looking at companies with a sustainable platform going forward, and companies with B Corp. accreditation are recognised as such because that has been independently verified.” Danone Dairy Ireland was the 15th Danone subsidiary to be B Corp. certified, with Byrne estimating that approximately 30% of the company’s
“
Cormac Byrne, Head of Sales, Danone Dairy Ireland, pictured with the full portfolio, including the newly launched Danone yogurt range.
global business is now accredited, a figure he expects to increase rapidly over the coming years. Why does B Corp. certification mean so much to the company and how does it tie into Danone’s overall One Planet, One Health vision? “Our mission is to bring health to as many people as possible. B Corp. gives that structure and it is also a
Danone Dairy Ireland is willing to share the insights we have gained through B Corp. accreditation with anybody, to help them achieve accreditation as well, because it is the right thing to do for the planet, for the people and for communities. If we can support any companies on that journey, we will.
”
rigorous independent assessment of your business, across all aspects of your operation, from your employees to customers, your product range, food waste, environmental impact. It looks at all of these areas through a microscope and scores you on them. For us, it’s a great way to ensure that we are doing the right thing.” A process of continuous improvement To obtain B Corp. certification, companies must complete a B Impact Assessment and recertify, with the aim to continuously improve, every three years. Danone Dairy Ireland underwent this rigorous, independent assessment, covering four key impact areas: governance, workers, community and environment. As part of that process, the company had to provide evidence of socially and environmentally responsible practices, including energy supplies, waste and water use, worker compensation, diversity and corporate transparency. These business practices include: • The company’s commitment to making all of its product packaging recyclable, reusable or
18|Retail News|July / August 2020|www.retailnews.ie
The Retail News Interview
The new Danone yogurt range has been created with simple, recognisable ingredients, like milk, live yogurt cultures and fruit and veg combinations, with no added sugar or replacement sweeteners.
compostable by 2025; • Staff being encouraged to work remotely in order to lower the company’s carbon footprint, while also contributing to better work/ life balance for employees; • Staff being incentivised to volunteer for charitable causes, allowing each employee to spend two working days with a charity of their choice every year; • The company running a
programme to give access to shares to all employees; • Any intern employed by the company being paid the living wage; • Partnering with another B Corp recipient in Ireland, UrbanVolt, to reduce the environmental impact of its office space in Dublin. “We have very clear targets to ensure that we are continually
The new Danone range comes in100% recyclable pots, with 30% recycled content.
pushing forward with our vision for the company,” Byrne insists. “It’s also been very motivating for employees of Danone Dairy Ireland; having B Corp. accreditation is like having a badge of honour that your company is doing the right thing.” Has it had a big impact on the day-to-day running of Danone Dairy Ireland? “When it comes to looking at new projects, new ways of working, new products, we would have always had a lens from a consumer point of view and the company’s point of view, but that is very much a B Corp. lens now, whereby we are looking to see what impact any project we undertake will have on the planet, the people - internal and external. “If it’s a new product, for example, we will look at how it is being produced. Is it the most efficient production method? Is it environmentally friendly? Will we have waste from the production process and if so, how will we deal with that waste? What is it delivering to consumers? These are the type of questions we ask and B Corp. very much anchors how we look at that.” New product range Speaking of NPD, Danone Dairy Ireland recently launched a new yogurt range, called simply Danone. “Danone has always been synonymous with functional health, from Actimel to Activia, which are anchored in gut health,” Byrne notes. “The Danone brand is built on the One Planet, One Health vision and our mission to bring health to as many consumers as possible. This is the right time to launch this product, as consumers are looking for simple, clear products that deliver quality in terms of taste, and deliver on their environmental and sustainability credentials.” The range has been created with simple, recognisable ingredients, like milk, live yogurt cultures and fruit and veg combinations, with no added sugar or replacement sweeteners. It uses 100% recyclable pots, with 30% recycled content, and the product wraps use recycled cardboard – indeed, Byrne feels that the entire Danone Dairy Ireland product range will move to fully recyclable pots in the near future.
Retail News|July / August 2020|www.retailnews.ie|19
The Retail News Interview
Danone’s new range is expected to prove hugely successful in the Irish market.
The importance of CSR Why has corporate social responsibility (CSR) taken on such importance with consumers and businesses? “I think it’s down to the high level of awareness consumers now have towards the environment,” Byrne insists. “There is a real interest in how we make decisions now, both at a societal and at a company level. Consumers want products and services that live up to their values, and the younger generation in particular want to know what you stand for, what is your purpose?” CSR is an integral part of Danone’s philosophy and is ingrained into Danone Dairy Ireland. The company supports a number of charities on a national basis, has worked with Food Cloud for a number of years now, and on a more personal level, every employee is encouraged to take two full working days each year to volunteer with a charity that means something to them – Byrne himself volunteered with Dublin’s homeless community in 2019. Good corporate citizenship is crucial to Danone Dairy Ireland, Byrne stresses: “It is incumbent on companies like Danone Dairy Ireland to support charities that are helping to do so much good in our society.” But what more can companies in the FMCG space do in the area of sustainability, perhaps to make recycling easier for consumers, store owners and businesses? “The more companies that take a similar journey to ourselves in terms of B Corp. classification, the better,” he says. “B Corp. is good for the planet, good for the community, good for employees. B Corp. companies are doing the right thing. For years, consumers have been looking for good products; now they’re looking for good companies with transparency and social The new Danone range includes products specially developed for younger responsibility to the fore.” consumers in a handy pouch format.
There are options for the whole family, including single pots, family sharing pots, multipacks and kids’ pouches. Flavour combinations include: Strawberry & Blood Orange; Peach & Ginger; Peach & Raspberry; Mango, Carrot & Banana; Strawberry; and Natural. “This is the first range of products to carry the B Corp. logo on-pack,” Byrne says. “It’s a great product that was developed with three things in mind: simplicity of ingredients, no added sugar or sweeteners, and comes in fully recyclable packs. Those three things really resonate with consumers and link back to B Corp.”
20|Retail News|July / August 2020|www.retailnews.ie
Covid-19 Pandemic
N e w re s e a rc h re v e a l s pandemic shopping habits New research from FMI into shopping habits during the Covid-19 pandemic revealed some interesting results, particularly for online grocery sales. COVID-19 has changed the way we shop and 73% of Irish consumers say they have changed their behaviour as a direct result of the pandemic. New research findings by FMI show that 12% of shoppers only purchased from one retailer, and that 2-5% of shoppers surveyed stayed loyal to their choice of retailer. This highlights the growing importance of brand loyalty to retailers and the opportunity and value to be gained from engaging with their existing customers. We are living in unprecedented and uncertain times. Throughout the pandemic, the focus on communities and on supporting local has been a key message to encourage unity and to ensure the survival of small businesses. This is a point that particularly resonated with 86% of respondents aged 35 and above. Generation Y and X typically care more about sustainability, and the pandemic highlighted their wiliness to extend this to supporting local economies, while also recognising that having local amenities within walking distance is a lifeline for the elderly and vulnerable. The importance of online Having an online presence became critically important for any retailer during the pandemic. Without the freedom to simply pop to the shops, customers went online to source goods to meet their needs. This automatically puts digitally savvy retailers first in line. FMI’s research found that leading the online grocery shop is the 35-44-year-old demographic, with 10% having moved their grocery shop online for the first time during the Coronavirus pandemic. Of those customers surveyed who moved online, 21% found the service to be good, yet only one in five of those are planning to continue to shop online in the future. This suggests that
Ireland still has some way to go in converting consumers to shopping online only for grocery and it also suggests that Irish consumers are keen, and have the willingness, to enjoy the instore shopping experience. 80% of the customers who shopped online, shopped less than twice a week. Interestingly, 84% of respondents who stated that they shopped more frequently reported an increase in shopping spend, compared to 50% of those who shopped less frequently who also reported an increase in shopping spend. The highest demographic reporting changes to their shopping pattern were the 45-55 age demographic, with 62% reporting that although they shopped less frequently, 90% of them admitted to shopping more than once a week. Increased shopping spend As expected, the research showed that 72% of 35-44-year-olds reported an increase in their shopping spend, against 55% across the board. This is likely due to the fact that families were forced to stay at home during this period and parents were looking for new recipe ideas and inspiration for home-cooked meals. Couples were having date nights at home and friends were hosting virtual dinner parties. Research also found that the age 65+ age bracket are less likely to impulse buy, with 18-24-year-olds more likely to purchase more than planned. Covid-19 may not have changed things forever, but it has certainly forced businesses to rethink their strategies and offerings. Those who have adapted to the changes are more likely to survive. The retail landscape is extremely competitive, and effective long-term strategies that easily enable you to meet consumers’ demands both in store and online will be vital for future growth.
Help us make the most of short and precious lives
ile identifier: LauraLynn is Ireland’s ONLY children’s hospice. ky_Graphic.eps sky_Graphic.jpg We provide palliative care and support to children with life-limiting conditions and their families. ditable file for use For use in inhouse n all applications presentations Choose LauraLynn as your charity partner: Make a difference Build your brand by partnering with a unique charity Enhanced staff morale Tailored support from our corporate team Engage in exciting fundraising teambuilding events
he Rainbow he rainbow support graphic should only be used when there is large graphic area and it doesn’t interfere with or distract from he brand identity.
T: 01 289 3151 E: info@lauralynn.ie W: www.lauralynn.ie
22|Retail News|July / August 2020|www.retailnews.ie
Chilled Snacks
Kinder Choco Fresh launches in Ireland Ferrero is giving retailers a fresh addition to its popular Kinder Chilled line-up with the launch of Kinder Choco Fresh. FERRERO, the owner of the category-leading Kinder brand, has expanded its popular range of Kinder Chilled products to help retailers appeal to new shoppers. The launch of Kinder Choco Fresh will bring young adults looking for indulgent flavours into the chilled category, sitting separately to the existing Milk Slice, Pingui and Maxi King treats. “We are very excited to bring this new product to Ireland, where we have already seen that people love the Kinder Chilled range and come back time and time again,” explains Levi Boorer, Customer Development Director for Ferrero UK & Ireland. “Choco Fresh allows us to extend the appeal of our chilled treats to new shoppers by offering a more indulgent flavour profile. “Where the existing Kinder Chilled products are ideal for parents to give their children as an afternoon treat, due to their high milk content, Choco Fresh appeals to the parents themselves and other young adults, allowing them to enjoy their own moment of indulgence. We are confident that this launch will help retailers grow their chilled range and drive further awareness of the Kinder products among shoppers.” Kinder is a leading brand for chilled treats in Ireland, worth €1.97m and accounting for 9.4% of category sales (Source: Nielsen Ireland, Total Kids Chilled, MAT, YA to 17/05/2020), with the current range including the Pingui, Milk Slice and Maxi King brands. With high
Kinder Choco Fresh combines a milky centre with a deliciously smooth hazelnut filling and is covered in a crunchy chocolate shell. repeat purchase rates, Kinder Chilled delivers value to retailers all year round. By offering Choco Fresh alongside the existing lines, retailers can ensure they broaden the appeal of the chilled category, offering products that the shopper can enjoy themselves, as well as those that can be taken home for the family. A premium taste experience With a unique combination of a milky centre, a deliciously smooth hazelnut filling and covered in a crunchy chocolate shell, Kinder Choco Fresh is an indulgent extension of the range, with its unique taste creating a premium product that shoppers will enjoy. The audience has been carefully considered at every stage of the product development, going beyond the ingredients and flavours used, to the packaging shape and design too. With a refined pack size and shape, Kinder Choco Fresh immediately stands out instore, catching the attention of shoppers with distinguishable design cues to demonstrate the quality of the product inside, supported by the instantly recognisable and trusted Kinder name.
Choco Fresh is available as a five pack in cases of 10, with each pack carrying an MSRP of €2.99. The unique flavours and strength of the Kinder name will attract shoppers looking for a tasty product that gives them a personal moment of enjoyment. Strong promotional support To support Tesco Ireland retailers throughout the launch period and beyond, Ferrero has a suite of materials and promotional plans in place. Set to reach the target audience throughout the shopper journey in Tesco Ireland stores, the bespoke POS materials will simultaneously raise awareness of the new product and communicate its key benefits to help retailers convert demand into sales. Kinder Choco Fresh is available to all independents, Tesco Ireland and Musgrave stores via specialist chilled products distributor, PRM. Retailers interested in stocking the range, or to find out more about the support available, should contact the team on +44 (0)28 92 620200 or via www.prmgroup.co.uk/contact-us.
24|Retail News|July / August 2020|www.retailnews.ie
Retail Ireland: Monthly Update
WHILE COVID RESTRICTIONS LIFT, BREXIT LOOMS INTO VIEW with the UK’s status as an independent country and cannot understand why they cannot have an EU-Canada style agreement. Barnier’s reply pointed to the proximity of the UK and volume of trade compared with Canada, and that the UK was seeking the same access to the single market as a member state, but the right to pick and choose on regulation. He also accused the UK of seeking to delay real negotiation to create a last-minute crisis in the hope of EU resolve crumbling. Each side will need to decide whether to go for an extension (up to two years), which the UK has officially rejected. It is clear that present progress is too slow for a deal by December, without some significant breakthroughs at heads of government level. WE have finally come to a point where most of the retail sector is beginning to reopen, albeit with heavy public health restrictions on capacity control and sanitation. Retailers all over the country who are reopening are doing so with the public’s health utmost in their minds and are keen to implement innovative ways to keep customers and staff as safe as possible. When the sector was in the grip of the Covid-19 restrictions, however, the Brexit process continued. The Covid-19 pandemic has undoubtedly changed the economic and negotiating context, with meetings taking place virtually. It has also made the importance of cross border co-operation more apparent. Work on implementing the Northern Ireland Protocol was kicked off by the meeting of the Specialised Committee on April 30. The European Commission published a technical note on the Protocol in April and the UK government published its approach to the Protocol in May. The detailed arrangements finally put in place must honour not only the principle but also the intention of the Protocol.
Furthermore, the outcome of the fouryear review of the Protocol should not be predetermined, as the UK Command Paper appears to suggest i.e. that it would be ‘disapplied’. Ill-tempered exchanges It is fair to say that during the Covid19 crisis, much of what has been transpiring in London and Brussels has flown under the radar. Rounds of negotiations between the United Kingdom and the EU have taken place. Progress has been slow, and last month an ill-tempered exchange of letters between the Chief Negotiators, Michel Barnier and David Frost, made the discussions even more difficult. The UK is accusing the EU of demanding too much in return for a tariff-free deal in terms of a ‘level playing field’ on issues of competition and regulation, and a role for the European Court in resolving differences. The other point of dispute is the demand from the EU side to maintain access to UK waters for EU fishing fleets along the Channel and North Sea. The UK considers these incompatible
Defining the future EU/UK relationship While the first half of 2020 has been one of frustrations on the Brexit front, time is ticking onwards towards the end of the transition period in December 2020. There are still many deadlines and important events to go through before we reach that date. With two Heads of Government / European Council meetings scheduled for the later part of this year, all eyes will now be drawn to the October meeting. This will be a chance for a much-needed breakthrough and some practical detail to be put on the technical jargon to date. It is a chance for politicians to explain to their countries what the implications of Brexit will be on day-today transactions. It will be at this European Council that the future relationship between the EU and the UK will be defined. To date, the respective negotiators have made little progress, but now that the shadow of the pandemic has lifted somewhat, pressure will return to Brussels and London to find an equitable outcome for all parties.
Tel: 01-6051558 www.retailireland.ie Need more? For more information about what we do and how your retail business can benefit from our unique services and supports, please visit us at www.retailireland.ie.
An appeal to the Grocery Retail sector The Irish Grocers Benevolent Fund is our industry charity, providing invaluable support to colleagues from our sector who find themselves in need of financial assistance at challenging times in their lives. Unfortunately, one of the consequences of the current crisis is the cancellation of many fundraising initiatives that involve large gatherings of people. For the IGBF, the cancellation of many of our major events is having a significant impact on our ability to raise funds. As a result, we have no current source of income to support the existing beneficiaries of the fund while we continue to receive additional requests for assistance at this difficult time. Therefore we find ourselves in a very challenging position. As President of Appeals for the fund this year, I am appealing to you to make as generous a donation as you can at this time. Many of you have been strong supporters of the IGBF in the past and I am appealing to you to provide support once again. I assure you that your donation has never been more necessary or would be more appreciated. I would be happy to receive your donation by cheque addressed to me at Musgrave House, Ballycurreen, Airport Road, Cork T12 TN99. Thank you in advance for your generosity and for your continued support for the IGBF. Yours sincerely
Sharon Buckley Group Commercial Director, Musgrave & President of Appeals, Irish Grocers Benevolent Fund.
26|Retail News|July / August 2020|www.retailnews.ie
Drinks News Rye River enjoys domestic sales surge in 2019 results RYE River Brewing Company has reported domestic growth of 21% in its 2019 figures, despite stagnant growth in the Irish craft beer industry overall. The company, which produces beers under the flagship brand McGargles, as well as supplying award-winning exclusive craft beers, The Crafty Brewing Company, Grafters, Solas, Rye River and Rye River Seasonal, recorded an operating profit of €154,934 for 2019, an uplift of 82% on 2018. Top-line sales saw a growth of 8.3%, which delivered an EBITDA of €743,345 in 2019, following a strategic focus on the domestic, European and international markets. “While Covid-19 has impacted the business since March 2020, our production facilities have remained fully operational and delivered record brewing levels, demonstrating the resilience of our team and our agile production processes ensuring we continue to consistently deliver great beer. Notwithstanding the impact and unique challenges associated with Covid-19, we are extremely positive looking ahead to the rest of the year,” explained Tom Cronin, Founder and Managing Director of Rye River Brewing (pictured). “Our strong retail domestic performance in the first half of 2020 and our reliable supply chain performances have meant that our revenues are still on track to reach our 2020 targets, allowing us to provide job security to our 53 employees, which we intend to grow throughout 2020.”
New distiller at Midleton Distillery
Irish gin sector welcomes new guidelines
IRISH Distillers has announced the appointment of Katherine Condon as distiller at Midleton Distillery. Katherine will report to newly appointed Master Distiller, Kevin O’Gorman, with responsibility for the production process from brewing to distillation. Tasting all distillates daily, Katherine will oversee the quality of all new pot and grain distillates produced at Midleton, to ensure the correct balance of flavours are present, before being matured and bottled. A chemical engineer, Katherine joined Irish Distillers in 2014 as part of the Graduate Distiller Programme. Upon successful completion of the programme, Katherine was appointed distiller at the Micro Distillery in Midleton, Irish Distillers’ hub for innovation and experimentation with new distillate styles. From there she moved to the main distillery as a process technologist and, most recently, production supervisor.
NEW guidance from the Food and Safety Authority of Ireland to ensure that Irish gin produced and marketed here is labelled correctly has been welcomed by Drinks Ireland - Spirits, who maintain that the new guidelines will help safeguard the industry against misleading products which have been marketed to appear as gin. The new guidance states that for a drink to be labelled as Irish gin, a certain production process must be followed. Besides water and alcohol, the only other raw materials that can be used for making gin are natural flavourings referred to as botanicals. The predominant flavour in gin is always juniper. Additional flavourings or plants with flavours may also be used to give variants like pink gin.
Black Tower brand unveils a new fresh look WORLD-renowned German wine producer, Reh Kendermann, is adapting the look of its biggest wine export brand, Black Tower, to meet consumer demands. The well-known logo with the black and red colour combination receives a facelift and a more modern, friendly look. A clear, elegant font highlights the lightness of the new design. Pastel colours are used as differentiators between the grape varietals, which have been integrated into the main label to be more easily visible and prominent. “We have done a lot of market research and found that lighter bottle designs are more preferable to the female target group,” notes Alexander Rittlinger, Managing Director. “The black top part of the bottle, a key feature of the brand’s hero SKU, Fruity White, has been reduced to give the bottle a lighter appearance, in accordance with the light and easy drinking style of the wine.” Black Tower is also unveiling a new Limited Edition bottle pack featuring an exquisite new design, only available throughout the summer months.
Retail News|July / August 2020|www.retailnews.ie|27
Drinks News C&C & Budweiser strengthen partnership
C&C Group plc and Budweiser Brewing Group UK&I, part of AB InBev, have announced the strengthening of their partnership, which sees C&C assume exclusive distribution of Budweiser Brewing Group’s complete beer brand portfolio across the island of Ireland. C&C and BBG will collaborate on the marketing of the unified portfolio, which also includes Stella Artois, Beck’s, Corona, Leffe and Hoegaarden. C&C and BBG plan to revitalise the Budweiser brand in Ireland and reconnect with Irish consumers, through a combination of marketing investment and in-pub activations. Ireland will also be the world’s launch market for Budweiser’s new brand visual identity, including new packaging and a new ‘Cadillac’ bottle with twist-off cap.
Red Bull Zero returns with a new taste FANS of Red Bull can now officially enjoy a summer that’s full of wiiings and free of sugar as Red Bull Zero, a fan favourite, lands back on Irish shelves, sporting a new great taste. Red Bull Zero is now similar in taste to the classic Red Bull Energy Drink, allowing fans to enjoy a zero sugar product with a different taste to Red Bull Sugarfree. Offering the same wiiings as Red Bull Energy Drink, Red Bull Zero is appreciated worldwide by top athletes, students and in highly demanding professions as well as during long drives. Red Bull Zero is now available for purchase at various retailers across Ireland in distinctive 250ml slate grey and silver cans. For more information, visit www.redbull.com/ie-en/.
Barefoot Wine Seltzers launch in Ireland BEST-selling Californian wine brand Barefoot is introducing a Wine Seltzer range to Ireland, just in time for summer. Barefoot Wine Seltzers come in a 250ml can format and are available in two delicious flavours: Pineapple & Passionfruit and Strawberry & Guava. This exciting new range will appeal to consumers who are looking for a thirst-quenching, lower calorie drink. Vibrant and refreshing, Barefoot Wine Seltzers are a made with sparkling water, white wine and natural fruit flavours. Each 250ml can boasts 70 calories, 4% ABV and is gluten free. “The natural flavour combinations coupled with the bright and fun packaging make them the perfect drink for sunny summer days, and the can format is an easy, convenient and sustainable option whatever the occasion,” says Olga Senkina, EMEA Marketing Director at E&J Gallo Winery.
Sarah Jessica Parker launches rosé wine AWARD-winning actor, producer, designer and entrepreneur, Sarah Jessica Parker has added a new rosé wine to her collection of wines with New Zealand-based winery, Invivo & Co. This premium rosé, Invivo X, Sarah Jessica Parker Rosé, comes from the South of France and has been crafted in partnership with Sarah Jessica Parker, the founders of Invivo and a family winery in Provence. The new Invivo X, SJP Rosé will have a suggested retail price of €18 and is distributed in Ireland by Barry & Fitzwilliam.
Lough Ree Distillery wins trio of medals at World Gin Masters LOUGH Ree Distillery in Lanesborough, Co. Longford, is celebrating a trio of medals at the World Gin Masters, including a Gold Medal for Aiteal, its new Gin made with Irish Juniper, as well as awards for Sling Shot Distilled Irish Gin, which won a Gold Medal in the Ultra-Premium class, and Mist + Moss Irish Gin, which took Silver. “We’re delighted to score so highly in this prestigious International competition with not one, but three products, all of which are uniquely Irish,” said Michael Clancy, Co-Founder, Lough Ree Distillery. “As a small, family-owned Irish distillery, we aspire to produce spirits that can compete with the best in the world and these awards are great validation for the quality of the ingredients we get from our Irish suppliers and the work that our team does to turn them into fine Irish spirits.”
NE W
M
ER
S
T
GER
IA
UC ED ES R
A N D BAC
A NEW HYGIENIC WAY TO DRY HANDS • Disposable paper hand towels with antibacterial • Reduces germs and bacteria • Dissolvable and flushable individually • Protect yourself and the people around you AVAILABLE TO ORDER Tennant & Ruttle Distribution Ltd +353 1 4666600, sales@tandr.ie
Innovative Paper Solutions
www.nicky.ie/nickydefend
Retail News|July / August 2020|www.retailnews.ie|29
On the Vine: Ireland’s Top 20 Wines
Best of the summer wine
Jean Smullen examines the 20 best-selling wine brands on the Irish market, including their latest innovations and promotions for summer 2020. FIGURES from IWSR, a company specialising in the analysis of global beverage alcohol trends, show that in the five years from 2014 to 2019, still wine sales on the Irish market were essentially flat, with volume growth for the five-year period of +0.3%. IWSR figures also show that the market share broken down by colour has not changed much: white wine sales lead the way with 47.7%, red wine has 45.2% and Rosé is now 5.5%. New world wines account for 64.3% of the total market, with European wines making up the balance of 35.7%. The most interesting IWSR figures relate to market share broken down by grape variety, which I have not seen before. In 2019, Sauvignon Blanc was the most popular grape variety on the Irish market by a mile, over 50% ahead in terms of case sales to the second most popular grape variety, Cabernet Sauvignon. It also came as a surprise to see Chardonnay in third place, significantly ahead of Pinot Grigio/Gris in fourth position. I was also heartened to see Malbec appear in fifth place, which of course is due to the success of the Argentine wine brands. The Retail News Top 20 Wine Brands report is based on Nielsen Scantrack volume sales figures for the 12-month
period, March 2019 -v- March 2020. MAT figures show that for the period, volume sales were largely static but value grew by +1.26% or €0.12 per bottle (75cl). Major movers in terms of countries of origin were New Zealand, Argentina and on a smaller scale Portugal; collectively they grew by €10.7m in value sales. 1
Chile
23.2%
2
Australia
16.0%
3
France
13.9%
4
Spain
12.5%
5
Italy
10.2%
6
New Zealand
6.4%
7
USA
5.2%
8
South Africa
4.4%
9
Argentina
3.8%
10
Portugal
1.0%
Rest of World
3.4%
Source: Irish Table Wine Off Trade Market Volume Share 2020 (Source: Nielsen Scantrack March 2020). The top five wine brands to March 2020 is slightly different this year; the
top four remain the same as in previous years, but this year Cono Sur moved up to fifth position, replacing Torres. The top five wine brands for 2020 on the Irish market are: 1. 2. 3. 4. 5.
Santa Rita Casillero del Diablo McGuigan Wolf Blass Cono Sur
The brands showing the largest increase in terms of case sales for the period to March 2020 are (in relation to their volume percentage growth): 1. 2. 3. 4. 5.
Finca Las Moras (Dada) Cono Sur [yellow tail] Oyster Bay Faustino
Chile is still showing growth with +22% share of value sales. In volume terms, it is significantly ahead of its nearest rival, Australia. The top five countries represent 74% of total sales on this market and remain in the same position as last year, which is: 1. 2. 3. 4. 5.
Chile Australia France Spain Italy
30|Retail News|July / August 2020|www.retailnews.ie
On the Vine: Ireland’s Top 20 Wines 1. Vina Santa Rita - Chile (Gilbeys with Bibendum) Established in 1880, Vina Santa Rita is one of Chile’s oldest and most respected wineries. Santa Rita is the number one selling wine brand in Chile and Santa Rita’s 120 brand remains the top selling wine brand in the off-trade in Ireland for the sixth year in a row. Santa Rita is launching a new tier within the Medalla Real range. The Medalla Real brand was created in 1983 in honour of Francisco Garcia de Huidobro, ancestor of the founding family of Santa Rita and Marques of Casa Real, who established the first money house in Chile. The brand logo shows this Royal Medal with the symbol of the royal Spanish crown. In 1987, before the Maipo Valley gained global recognition, a bottle of the 1984 vintage of Medalla Real Cabernet Sauvignon changed the history of Chilean wine. Defeating over 35 participants, including wines from France, Spain, and California’s Napa Valley, Medalla Real became the first Chilean wine to win a gold medal in the Olympiade du Vin hosted by Gault & Millau in Paris. This recognition positioned Chile and Maipo Valley as one of the best places in the world to produce Cabernet Sauvignon. Santa Rita’s 120 brand remains the top selling wine brand in the off-trade in Ireland for the sixth year in a row. The Medalla Real Reserva, made by winemaker Óscar Salas, will be positioned between the best-selling 120 range and the ultra-premium Medalla Real Gran Reserva. The range includes a Limari Chardonnay, Maipo Cabernet Sauvignon, Limari Syrah and a Casablanca Sauvignon Blanc, which will be widely available. The Medalla Real Reserva Cabernet Sauvignon and Sauvignon Blanc will be available from SuperValu at the beginning of August with an RRP of €16. The Chardonnay and Syrah are available in Dunnes Stores and Tesco. The Medalla Real Gran Reserva (RRP Santa Rita is launching a new tier within the Medalla Real €20) will also have new labelling, and is available range, including Medalla Real in selected independent Reserva and the ultra-premium Medalla Real Gran Reserva. off licences. 2. Casillero del Diablo - Chile (Concha y Toro) Casillero del Diablo is Concha y Toro’s flagship brand and Ireland’s second most popular wine. Concha y Toro manage their brand directly and I spoke with Emilie Biver, Concha y Toro Marketing Manager for Western Europe, about their plans for 2020. Their 2020 summer campaign will focus on promoting their summer wines. Their marketing plans includes strong
above the line promotions, utilising digital, social media, TV AdSmart and an audio presence to support in-store promotions. As soon as the situation allows, they will be placing POS kits in-store on demand, in order to increase visibility and awareness for their summer varietals particularly the Sauvignon Blanc, Pinot Grigio, Chardonnay and Rosé wines. Their sponsorship of this spring’s TV sensation, Normal People, broadcast for six weeks on RTE, was very positive in terms of raising awareness of the Casillero del Diablo brand with the Irish consumer. Coming up later in the year at Halloween is the Casillero del Diablo Hallowine campaign, Casillero del Diablo’s featured above and below sponsorship of TV sensation the line promotions, utilising Normal People on RTE a strong TV partnership was very positive in terms (shortly to be announced) of raising awareness of as well as a targeted digital the brand with the Irish and online package, and of consumer. course first in class in-store POS. Their successful Diablo Red Blend, launched in 2018, made from premium fruit sourced in the Maule region, is a great a mid-priced premium wine. Later this summer, they will launch Diablo Black, made from Cabernet Sauvignon, which be the focus of their autumn campaign. Starting in July, Concha y Toro will highlight Diablo via social media and digital advertising and later in the year will follow up with in-store activations (displays, bespoke POS kits, etc. on demand). Look out too for their Argentine brand, Trivento, especially their Reserve Malbec and of course the brand new White Malbec (available in Dunnes Stores and Tesco). Media activity around Trivento includes a partnership with The Irish Times, who are running competition to “Win a Big Green Egg” as well as sponsorship of Sky’s A League of Their Own from June to September. 3. McGuigan - Australia (Barry & Fitzwilliam) McGuigan remains the number one Australian wine brand in the off trade. The McGuigan Black Label varietal range includes Cabernet Sauvignon, Shiraz, Merlot, Chardonnay, Sauvignon Blanc, Pinot Grigio, Rosé, Malbec and McGuigan Frizzante. McGuigan also sell a range of The hugely popular McGuigan Black Label Range will be on offer through all the major supermarket groups at €9 this summer.
32|Retail News|July / August 2020|www.retailnews.ie
On the Vine: Ireland’s Top 20 Wines de-alcoholised wine called Delight, with a 0.5% ABV; the range also has a Rosé and a white made from the Moscato grape. Kate Barry, Marketing Manager at Barry & Fitzwilliam, who distribute the McGuigan range, told Retail News that this summer the McGuigan Black Label Range will be on offer through all the major supermarket groups at €9.
The Cool Red, a Pinot Noir that can be chilled, which makes it perfect for summer drinking. Part of the Bicicleta range, the brand encourages the Irish consumer to enjoy chilled red wine, which is something new to them. With its striking bottle design, this limitededition red is bound to attract sales this summer. Look out too for the Bicicleta Rosé Reserva, made from Pinot Noir, with lots of summer fruit and a salmon pink colour; this fresh juicy wine will be very much in demand with the Rosé consumer this summer. Their new Cono Sur organics varietal range is made from organically grown grapes certified by the BCS Öko Garantie GmbH. The range includes Sauvignon Blanc, Chardonnay, Pinot Noir, Malbec and a red blend, all brand new to the market and all landing in store this summer.
[yellow tail] enjoyed strong growth over the last year. plans during the summer of 2020, as summer sales will be key for this new label. [yellow tail] Jammy Red Roo is a red wine blend made from Shiraz (80%), Cabernet Sauvignon (10%) and a mixed blend of other red varietals. A bold, expressive fruity wine, it comes with a recommendation to be served chilled, guaranteed to start a new trend with the Irish consumer.
Wolf Blass is a strong, premium Australian brand that enjoys enormous recognition on the Irish market, particularly for its flagship Yellow Label brand. 4. Wolf Blass Australia (Findlater & Co) Wolf Blass is a strong, premium Australian brand that has enormous recognition with the Irish consumer. It is the second biggest selling Australian wine brand on the Irish market. With great visibility and good distribution, the sales figures include both Wolf Blass and their second label, Eagle Hawk. Yellow Label is the Wolf Blass flagship varietal brand; it was first created in 1966 and is very much to the fore in terms of sales on this market. Look out for the Wolf Blass Yellow Label “Your perfect dinner companion” promotion this summer. 5. Cono Sur - Chile (Findlater & Co) The increased growth in sales Cono Sur has taken this premium Chilean brand into the top five this year, making it the third most popular Chilean wine on the Irish market. Its green credentials help to make this brand very much sought after. Their focus this summer is on
Cono Sur’s green credentials has made it much sought-after with Irish consumers; look out for the Bicicleta range this summer. 6. [yellow tail] - Australia (Gilbeys with Bibendum) [yellow tail] is another star performer on the Irish market. It moved from ninth place to sixth overall in the top brands chart this year. Alexandra Benitez of C&C group told Retail News that the first quarter of 2020 has been difficult, but sales of [yellow tail] continued to perform well during the spring of 2020 and overperformed in terms of growth via its top sku’s Pinot Grigio, Shiraz, Chardonnay and Merlot. In April 2020, [yellow tail] Jammy Red Roo was launched in Ireland and Gilbeys with Bibendum are planning to make this the focus of their marketing
7. Barefoot (E&J Gallo) - California, USA (Comans Beverages) Barefoot is the number one bottled wine brand by volume in the world. Their wines have an easy drinking style and loyalty towards the brand is high, with 43% of customers making a repeat purchase. With a diverse varietal range of award-winning wines available in both bottles and cans, Barefoot has increased its volume share in the Irish off trade by +14.8% in the year to March 2020. It is the number one selling Californian brand on this market. The big news this summer are Hard Seltzers, which exploded onto the American drinks scene last year. Hard Seltzer’s are a canned low alcohol sparkling water beverage with an ABV of 4%, not so much a drink, more a lifestyle trend. Look out for the Barefoot Wine Seltzers, with only 70 calories per 250ml and gluten free, they are destined to appeal to Generation Z. Barefoot Wine Seltzers are now available in Irish off-licences in two flavours, Pineapple
34|Retail News|July / August 2020|www.retailnews.ie
On the Vine: Ireland’s Top 20 Wines & Passionfruit and Strawberry & Guava (RRP €2.75). The launch of the Barefoot Wine Seltzers will be supported by a PR and social media campaign involving influencers and YouTube advertising. Currently worth $550 million in the USA, the hard seltzer category is currently booming and could grow to reach sales of $2.5 billion by 2021.
Barefoot is the number one bottled wine brand by volume in the world and the number one Californian brand in Ireland. 8. Torres - Spain (Findlater & Co) Torres is Ireland’s favourite Spanish wine brand; and wines such as Sangre de Toro and Vina Sol drive the growth on this market. Torres owns 2,432 hectares of vineyards, 2,000 of which are in Spain, 400 in Chile, and 32 in California. In Spain, Bodegas Torres produces wines in the following DO’s: Catalunya, Conca de Barberà, Costers del Segre, Penedès, Priorat, Terra Alta, Sangre de Toro Reserva Cabernet Sauvignon is new from Torres, Ireland’s favourite Spanish wine brand.
Rías Baixas, Ribera del Duero, Rioja and Rueda. Torres’ flagship brand, Sangre de Toro, is performing very strongly at the moment thanks to the quality image it has with the Irish consumer. This summer, the range has been extended to include a new wine, Sangre de Toro Reserva Cabernet Sauvignon, which is bound to perform well. Look out too for the addition to their no alcohol wine range, the Natureo Rosé. The no alcohol range performs very strongly on this market and is also available in a red and white variety. 9. Dada (Fincas las Moras) - Argentina (Comans Beverages) The brand that out-performing everyone else, by a country mile this year is the Fincas las Moras Dada range, which moved from 20th place in 2019 to ninth position in 2020. Last year was very strong year in terms of sales for Dada as the brand that resonates the most with the Irish consumer. With volume growth of 111% in the 12 months to March 2020, the Dada brand was the fastest growing wine brand on the Irish market for both volume and value sales (+105%). Dada 1, as it is now known, is made from a blend of Malbec and Bonarda and is a fruit forward red wine style with sweet fruit on the finish that adds to its appeal for both male and female drinkers. The range expanded last year and now includes, Dada 2 (Merlot) and Dada 3 (Cabernet/
Shiraz). This Argentine brand has achieved enormous success since it was first launched on the Irish market four years ago. 10. Villa Maria - New Zealand (Barry & Fitzwilliam) Villa Maria Estate was founded by Sir George Fistonich in 1961 and is still family owned. The Villa Maria Private Bin has been strongly established on this market for over 30 years. Villa Maria is still the number one New Zealand wine brand in the Irish market. Kate Barry, Marketing Manager at Barry & Fitzwilliam, who distribute the range in Ireland, told Retail News that the Villa Maria Private Bin range will be on offer this summer through all the major supermarket groups at an RRP of €11-12.
The Villa Maria Private Bin range will be on offer this summer through all the major supermarket groups at an RRP of €11-12.
Dada has been the star performer on the Irish market over the last year, enjoying volume growth of 111%.
OPEN YOUR MIND. OPEN
IT’S
SUMMER TIME
DRINK RESPONSIBLY
36|Retail News|July / August 2020|www.retailnews.ie
On the Vine: Ireland’s Top 20 Wines 11. Campo Viejo - Spain (Pernod Ricard/Irish Distillers) Spain has a number of key brands such as Campo Viejo who perform extremely well on this market. Because a number of them feature in the top brand list, sales of Spanish wine continue to perform well both in value and volume terms. Look out for news about the Campo Viejo range in Autumn 2020.
The very popular Campo Viejo range enjoys strong sales throughout Ireland. 12. Oyster Bay - New Zealand (Delegat Wine Estate) Delegat, the New Zealand owned wine business, are the proud owners of the global phenomenon Oyster Bay, one of the world’s most successful superpremium wine brands. Oyster Bay had an exceptionally strong year in Ireland last year. Henry Currie, their European National Sales Manager, told Retail News that Nielsen data to November 2019 showed that the New Zealand wine category grew 10% in volume, whilst the Oyster Bay brand grew by +46%, with Oyster Bay delivering 83% of the overall category growth. “It is extremely pleasing to see the performance of the brand in a mature consumer wine market like Ireland,” he said. “Oyster Bay is one of the world’s most loved wine brands and remains the most searched New Zealand wine brand on Google globally. It is this global strength, desirability and interest in the Super-premium brand, Oyster Bay enjoyed an exceptionally strong year in Ireland last year.
brand, and its appeal to affluent, high spending wine lovers, that drives such exciting growth across the full range and contributes to the wider category growth.” The Nielsen data showed that whilst Oyster Bay Sauvignon Blanc grew by an impressive 51%, Oyster Bay Chardonnay, Merlot and Pinot Noir sales collectively saw double digit growth during the same period. Oyster Bay’s newest addition to the range is Oyster Bay Rosé, available across selected Dunnes Stores this summer. 13. E&J Gallo - California, USA (Comans Beverages) The key brands from E&J Gallo continue to perform well. Their most prominent brand, Dark Horse, is made by winemaker Beth Liston. Beth combines the art of traditional winemaking with new innovative technologies. Her policy is to take the first pick of grapes from over 400 growers across California and taste the wines over 100 times from vine to bottle. Beth has always believed that fortune favours the bold. She prides herself on the close relationships she has developed with the growers, which has allowed her to win first pick of grapes from their harvests. Dark Horse, with its distinctive labels, has just launched new more premium look packaging to help re-position the brand. The varietals in the Dark Horse range include Cabernet Sauvignon, Merlot, Malbec and Zinfandel, as well as Sauvignon Blanc, Chardonnay, Pinot Grigio and a Rosé. With an RRP of €12,
their new look premium packaging is bound to create greater awareness. Gallo’s other key mid-priced brand, Apothic Red (RRP €15), with its very eye-catching label is going on offer this summer at €12. Apothic Red has a very loyal following; its target market are millennial customers who really go for this brand as the 81% repeat purchase rate shows. Apothic Red is a made from a blend of Zinfandel, Merlot, Syrah, and Cabernet Sauvignon.
Blossom Hill Gin Fizz comes in two flavours, Rhubarb and Lemon & Rosemary, and combines gin and wine flavours.
14. Blossom Hill - California, USA (Findlater & Co) The Blossom Hill range includes Chardonnay, Sauvignon Blanc, Pinot Grigio, Cabernet Sauvignon, Merlot, White Grenache and of course the much-loved White Zinfandel, as well as the newest addition, the Sparkling Zinfandel. Last year in the UK, they launched a brandnew spritz style brand Blossom Hill Gin Fizz which achieved enormous success. This summer, they are launching it on the Irish market in both 75cl bottles and single serve cans. Look out for new in-store POS this summer; the new gin fizz has an 8.5% ABV and comes in two flavours, Rhubarb and The hugely popular Apothic brand from E&J Gallo. Lemon & Rosemary, and
Retail News|July / August 2020|www.retailnews.ie|37
On the Vine: Ireland’s Top 20 Wines will appeal to the millennial market, for both its low ABV and the combination of gin and wine flavours. 15. Faustino - Spain (Richmond Marketing) Philip Cullen, Brand Manager for wines and spirits at Richmond Marketing, told Retail News that Faustino has continued to grow yearon-year in the Irish market. Their Bodegas Faustino Art Collection has three wines in the range, Crianza, Chardonnay and a Rosé. The label was developed by artist Willy Ramos. The Crianza and Rosé are available this summer in Dunnes Stores. The Faustino Chardonnay and Faustino Crianza will feature as Wine of the Month in SuperValu during July 2020. 16. Hardy’s - Australia (Gilbeys with Bibendum) Hardy’s is one of the most powerful Australian wine brands in the world. Hardy’s Stamp of Australia is their entry level wine. The Stamp series is a barbeque friendly wine and the varietals are perfect for summer drinking. Hardy’s also have a good range in the mid-price sector, mostly single varietal and blends sold as the Private Bin. A well-loved, visible Australian brand, it has a loyal Irish customer base. 17. Dona Paula Argentina (Gilbeys with Bibendum) Dona Paula was The ever popular and super-premium established in 1997 and is owned by the Santa Faustino I Gran Rita group. An estate Reserva. winery, their grapes are sourced from their own vineyards, which cover 703 hectares of the best local sites in Mendoza. In his renowned Argentina Special Report 2020, Tim Atkin MW awarded Martín Kaiser of Dona Paula “Viticulturist of the Year”. Kaiser, who joined Dona Paula in 2006, has conducted a comprehensive vineyard research programme entitled Terroir in Focus, looking specifically at the influence of weather and soil on Malbec. This recognition is particularly pertinent as from May 2020, Kaiser will be taking up a new position Director of Viticulture and Winemaking at Dona Paula. Under his tutelage, emblematic vineyards of Dona Paula have been developed, including Alluvia in Gualtallary, enabling renowned wines such as Alluvia Parcel and the Altitude Series range to be developed. Kaiser, assisted by Andrea Tansini, takes over The hugely popular Dona Paula brand, owned by the Santa Rita group.
the winemaking element of the role from Marcos Fernandez, who left Dona Paula earlier this year. 18. Brancott Estate - New Zealand (Irish Distillers/Pernod Ricard) Brancott Estate are the pioneers of the Marlborough region in New Zealand and were the first winery to plant Sauvignon Blanc in Marlborough. The Brancott range includes Sauvignon Blanc, Sauvignon Gris, Pinot Grigio and Pinot Noir. One of the three top New Zealand brands on the Irish market, sales of Brancott wine increased in the last year, moving it up one position in the chart. Look out for more news on this brand in autumn 2020. 19. Vina Carmen - Chile (United Wines) The distribution in both the north and south of Ireland of the premium Chilean brand Vina Carmen moved to United Wines last year. The flagship premium wine from the Santa Rita stable has a very loyal following on this market with the customer who enjoys mid-priced quality wines from Chile. Wine-maker Emily Faulconer joined Vina Carmen in 2016 and has made a big impact in winemaking terms since then. “The 2020 harvest was, a very challenging vintage but, at the same time, very exciting”, said Emily. The Chilean Harvest report for 2020 highlights the fact that this year, as well The Carmen Gran as being one of the most challenging in Reserva Cabernet terms of the Covid-19 pandemic, was Sauvignon Frida also the earliest vintages in the last 20 Kahlo Edition, with years. The harvest began in February its eye-catching and ended mid-April 2020 and will label design. most certainly be remembered for a number of reasons. The 2019-20 season was warmer than the historic average, with a deficit of winter rain. However, overall, it has turned out to be a really good vintage with very healthy grapes. “We had to react early to get the style that we wanted and to be able to respect what we look for in every vintage; to show the terroir of the wines, every valley performed and the results are great and I cannot wait for all of you to taste them” said Falconer. The Carmen team is very happy with the results; the wines are balanced, with good alcohol and pH levels. Look out for the brand-new limited-edition premium wine from the range, the Carmen Gran Reserva Cabernet Sauvignon Frida Kahlo Edition with its eye-catching label design. 20. Jacob’s Creek - Australia (Irish Distillers/Pernod Ricard) Jacob’s Creek was first established by Orlando Wines’ founder Johann Gramp nearly 170 years ago in 1847, along the banks of Jacob’s Creek, where Johann Gramp planted his first vineyard. Owned by Group Pernod Ricard, Jacob’s Creek has a comprehensive range of key wine styles, including the premium Double Barrell range, and the lower alcohol Cool Harvest range, which includes Vermentino and Sauvignon Blanc, as well as the very popular varietal range and of course the great value and very well-made range of sparkling wine styles. One of Australia’s iconic wine brands.
38|Retail News|July / August 2020|www.retailnews.ie
Warehousing, Distribution & Bonded Services
Stafford Bonded:
for all your distribution and warehousing needs Stafford Bonded has been providing bonded warehousing solutions for four generations, and in recent years has taken on a new mantle with the huge growth in popularity of Irish whiskey. EXPERTS in warehousing, distribution and bonded services, Stafford Bonded is always looking for new strategic partners. “The company’s versatility has seen us effectively navigate the unprecedented challenges of Covid-19 and we continue to look forwards as we embark on a new normal with our existing and prospective clients,” explains Michael Stafford Jnr, Managing Director. Stafford Bonded is a third-party logistics provider that can also help you to grow. As a bonded warehouse and tax warehouse operator, the company is highly respected amongst renowned food & drinks operators. It offers value added services that can help optimise every step of your supply chain. “Our clients range from global brand owners to national retailers and private clients,” Michael continues. “With over a century of experience, coupled with market leading software, clients seeking professional bonded services are in great hands.” Stafford Bonded also provides a domestic and international distribution service, working in an official capacity to distribute food and drink brands internationally, as well as with brands looking to place their product in the Irish market. The company provides a direct route to market into multiple channels, with a large network in the on and off trade, as well as duty free and travel retail sectors. “This focused, multi-channel approach alongside our logistical expertise makes Stafford Bonded the partner of choice for leading food and drinks brands,” Michael stresses. 300,000 square feet of bonded warehousing Stafford Bonded has sites in Wexford and Waterford, with 300,000 square feet of bonded warehousing. Its annual throughput includes 2m case movements and over 100,000 keg and cask movements. Its sites are secured with motion sensor voice-over command CCTV and 24-hour monitoring. Its software is purpose built for bonded warehouses and the management of third party inventory. As part of the company’s programme of continued investment, scanning technology has recently been implemented across all its warehouses, providing enhanced traceability for its clients. “We are of course equipped with the latest ICT systems and EMCS to ensure that revenue reporting, customs clearance, logistics and fulfilment, intake and processing, promotional repacks and inventory controls can be executed with
efficiency and precision,” Michael Stafford explains. “The ‘family’ character of the company, refined over four generations, is central to our customer ethos and commitment to professionalism and the development of long-term relationships. As a result, our customers and partners receive a truly personal service, responsive to their diverse and changing needs.” Ireland’s largest provider of whiskey solutions In recent years, Stafford Bonded has expanded its operation, becoming Ireland’s largest independent provider of whiskey solutions. The company’s end-to-end services include bulk intake, casking, maturation, disgorging/blending, inventory management, regulatory compliance and cask sales. “We are delighted to offer these range of services in support of one of Irelands greatest exports,” Michael notes. “Our bespoke offering and independent positioning make us ideally placed for anyone looking for Irish whiskey solutions, in whatever capacity.”
S T A F F O R D B O N D E D I S A T H I R D P A R T Y B O N D E D WA R E H O U S I N G S T O R A G E A N D D I S T R I B U T I O N B U S I N E S S W I T H F O U R G E N E R AT I O N S OF EXPERIENCE. THE STORAGE OF WINES, BEERS AND SPIRITS UNDER BOND IS A COST EFFECTIVE BUSINESS SOLUTION. S T O R E Y O U R P R O D U C T I N O U R S TAT E O F T H E A R T R E V E N U E A P P R O V E D T A X WA R E H O U S E F A C I L I T I E S . LEAR N MOR E ABOUT OU R BON DE D WAR E HOUSI NG AN D DISTR I BUTION SE RVIC E S BY VISITI NG
WWW.STAF F O R DB ON DED. C O M OR BY F OLLOWI NG US ON:
STAFFOR D B ON DED
S TAF F OR DB O N DED.
STAFFORD BONDED, SINNOT TSTO WN L ANE, DRINAGH, WEXFORD,Y35 T3HT. E: INFO@STAFFORDBONDED.COM
| + 3 5 3 ( 0 ) 5 3 9 14 2 6 5 5 | W W W . S T A F F O R D B O N D E D . C O M
40|Retail News|July / August 2020|www.retailnews.ie
In-Store Efficiency
Driving productivity through people
Simon Hedaux, founder and CEO of Rethink Productivity, advises retailers on how to create the ultimate shop-floor team, including the do’s and don’ts of managing deliveries and ensuring your team has the right balance of skills, used efficiently. IN retail, people matter. Having the right team in place to provide your unique brand experience is just as important as having good stock management and efficient till systems. Smart retailers measure how long it takes to undertake store tasks and combine the results with volume data so they can calculate the workload by week or day for each store in their estate. That helps, because they can be sure that the salary budgets and number of colleagues on duty align with the business’ sales targets. Too many colleagues create lower productivity and too few means a compromised operation and less time for customers. Clients undertaking activity measurement and workload model creation use their model to plan resources and undertake “what if” modelling for process changes and new initiatives. A ‘model week’ template of store activity Understanding how much work there is to do is the foundation to having the
need on duty at any one time. right team in place. You can then make Once you’ve mapped shift patterns decisions on when work should be against your peaks, there will inevitably planned in, perhaps by creating a ‘model be “spare” resource at quieter times. week’ template of store activity. Use the capacity in these quiet times There is workload you can’t control, to plan in the tasks that are flexible in which must be the first thing that goes into your typical week plan. That is time to serve customers. Understanding your flow of customers through the week, when your business peaks are (such as lunchtime and the pre and post school drop-off rushes) helps you maximise your productivity. Getting it right at the busiest times matters because it is when the highest number of customers visit, and it is the easiest time to have an impact on sales growth. Workload serving customers at busy times Calculating the workload you need to serve customers dictates the minimum at busy times dictates the minimum number of number of colleagues you colleagues you need on duty at any one time.
Retail News|July / August 2020|www.retailnews.ie|41
In-Store Efficiency when they are done, for example admin, stock counts and price changes. Managing deliveries efficiently The biggest task workload is putting away your delivery. There are two approaches for planning deliveries, and which is best for you will depend on the scale of your operation and when you have spare capacity. The most efficient way to manage a delivery is to fill up when the shop is closed, as there are no interruptions from customers and a laser focus on getting the job done as quickly as possible. If you are filling up while keeping an eye out for customers who are ready to pay, subsequently having to walk backwards and forwards to the till, you will lose focus and time in switching between the tasks. And it may prove a worse customer experience too. However, while out of hours delivery is the most efficient way when looked at in isolation, it may not the best option in practice. If you have spare capacity time between your customer peaks, filling it with putting away stock can be the best option. It wouldn’t make sense to have people with nothing to do during the day and then pay more people to work an evening shift on the delivery. It can be a fine balance and understanding your peak workload and spare capacity will help you make the right decision. The biggest mistake to avoid is to jump into putting stock away whenever the delivery arrives. Providing there are no issues maintaining the cold chain, keep peak times free from delivery work and focus on looking after customers and driving sales. The next step is to decide which role will complete the tasks. Your team may be a mix of trained specialists and more flexible generalists and you want to plan any specialists to the right tasks. For example, in a coffee shop or café area in-store, you’ll want your barista to focus on making coffees rather than clearing tables. Calculating workload gives an evidence base to underpin your decisions on whether a specialist role is required or not and supports deployment of the mix of part-time and full-time roles for maximum flexibility. Leadership structure The next important decision is the leadership structure design. There are many factors to consider when designing
The biggest task workload is putting away your deliveries in the most efficient manner. the optimum leadership model. How many heads can one manager lead? How do trading hours influence the need for management cover? How do you get a cost-effective balance between number of managers and colleagues, and how do you have a structure that supports colleague development? Undertaking role studies by shadowing roles for a whole shift to produce a picture of how leaders spend their time is a great way to get an overview. There is no wrong or right answer; what matters is that the role performs as the organisation designed it to. We’ve seen examples where the roles were not optimised within a structure. For example, in a department store with multiple layers of management, we observed team managers spending less than 10% of their time doing management duties and most of their time filling shelves. Our recommendation was to slim down the leadership levels and allow a general assistant on a more appropriate rate of pay undertake the stock duties. We’ve also seen variation in how roles spend their time between stores. In a DIY store, we observed store managers who spent most of the day on admin through to a manager who spent a day rearranging slabs in the garden centre and not spending any time with their team. A high degree of variation between stores suggests a role clarification exercise is needed for improved consistency with job profiles. We also provided benchmarks on how team leaders, assistant managers and store managers spend their time to give the retailer a wider context for their review and decision making. It’s so easy for decisions on skill mix and leadership models to be based on gut feel or the view of a single senior leader. Time and motion workstudy measurement gives you the evidence base you need to review your operation and create your ultimate shop floor team.
About the author:
Understanding your flow of customers through the week, when your business peaks are, helps you maximise your productivity.
Simon Hedaux is founder and CEO of Rethink Productivity, a world leading productivity partner which helps businesses to drive efficiency, boost productivity and optimise budgets. For more information, see rethinkproductivity.co.uk.
42|Retail News|July / August 2020|www.retailnews.ie
Lindt
“A moment of bliss wherever you go “ The number one premium chocolate countline in Ireland, the Lindor Treat Bar is the perfect on-the-go treat for consumers, and a surefire winner for retailers.
Lindor Treat Bar is available in three flavours: the classic Lindor milk recipe, the irresistibly smooth melting mint filling and a zesty orange flavoured milk chocolate. NOW worth over €2m in RSV, the smooth melting Lindor Treat Bar is Ireland’s number one premium chocolate countline and is a proven must stock range for retailers this year (Source: Nielsen Scantrack MAT, Snacking Countline Market, to May 17, 2020). Available in a slim stick format, it is the perfect on-the-go treat and is available in three delectable flavours: the classic Lindor milk recipe, the irresistibly smooth melting mint filling and a zesty orange flavoured milk chocolate for those looking for
something with a little twist, each flavour promising to be a “blissful” experience on consumers’ taste buds. Convenient multipack format Following on from the success of the Lindor Treat Bar range, also available are the Lindor Milk and Orange Multipacks, the same slim stick packaging but in a convenient multipack format, which are perfect for filling lunch boxes or as a little picnic treat while consumers are out and about. The Lindor Multipack is available in all leading retailers and retails at €2.69.
The Lindor Treat Bar 38g range retails at €1.29 and is available nationwide. The epitome of indulgence Lindt Lindor is the epitome of indulgence as it creates a moment of escape and relaxation in your busy day - a smooth melting ‘me moment’. The tempting Lindor Treat Bars are a product of the care and passion that Lindt’s Swiss Master Chocolatiers put into creating each and every recipe. With a selection of flavours to choose from, consumers can treat themselves to moment of bliss wherever they go with the Lindor Treat Bar!
The Lindor Treat Bar creates a moment of escape and relaxation in a busy day - a smooth melting ‘me moment’.
Are you monitoring access to your premises because of the COVID-19 crisis? ARE YOU CONSIDERING AN ACCESS CONTROL OR CCTV SYSTEM FOR YOUR RETAIL OR BUSINESS PREMISES TO DO THIS? IF YOU USE AN UNLICENSED CONTRACTOR TO INSTALL AN ACCESS CONTROL OR CCTV SYSTEM, INCLUDING TEMPERATURE SCREENING SYSTEMS You could face a fine of up to €4,000 and up to 5 years imprisonment if you are prosecuted. You also risk invalidating your insurance cover. Inspectors from the Private Security Authority will be visiting premises across the country. If you break the law you will be prosecuted. YOU CAN CHECK IF A CONTRACTOR IS LICENSED AT PSA.GOV.IE A PSA Licence is also required for the following security services; Locksmith, Intruder Alarm Installation and Maintenance, CCTV Systems Installation and Maintenance, Powered Gates. The Private Security Authority (PSA) is the statutory body responsible for the licensing and regulation of the private security industry in Ireland. The PSA is an agency of the Department of Justice and Equality.
44|Retail News|July / August 2020|www.retailnews.ie
Security
Covid-19, retailers and the private security industry
The Covid-19 pandemic has impacted every aspect of Irish society, including the security industry. The Private Security Authority has some important advice for retailers about ensuring their security staff and systems comply with legislation; failure to do so could invalidate your insurance. RETAILERS face many new challenges as the country opens up and in facing these challenges, there is a risk that retailers may fall foul of regulatory authorities. One area where retailers may find themselves at odds with the regulator is in the area of security, as access control, CCTV and other security products and services respond to the post-lockdown environment. The Private Security Authority (PSA), an agency of the Department of Justice and Equality, is responsible for the regulation of the security industry in Ireland. The PSA has a particular interest in the management of queues, along with the installation of access control and CCTV measures at retail premises throughout the country. Managing queues The management of queues outside retail premises will be a feature of our shopping experience for some time to come. It is important to note that retail staff who manage these queues, where these staff also carry out other retail functions, do not require a licence from the PSA. However, it is important to consider the safety of these staff should an incident arise at the queue.
“
The use of unlicensed providers is an offence with fines of up to €4,000 and/ or imprisonment. The use of unlicensed providers can invalidate your insurance cover. The PSA publishes details of all persons who have been prosecuted for using unlicensed providers.
”
Retail News|July / August 2020|www.retailnews.ie|45
Security The PSA would recommend that PSA licensed security guards are used to manage queues as they have been trained to deal with incidents that might arise. If not using your retail staff for managing queues, you must use a PSA licensed security guard. Failure to do so puts you at risk of prosecution and could also invalidate your insurance cover if an incident arises. Access control and CCTV systems A number of access control and CCTV products have been launched to manage and control access to shops and other premises. The installation, maintenance and servicing of these products may only be undertaken by the relevant PSA licensed provider. All PSA licensed providers operate to regulatory standards and have been Garda vetted as part of the licensing process. They will ensure that the equipment is installed in accordance to regulatory and manufacturers’
Covid-19’s social distancing regulations have brought added security issues for retailers. requirements. Retailers who decide to install an access control device or CCTV equipment, including systems with temperature screening, must ensure that the provider used is licensed by the PSA. The use of unlicensed providers is an offence with fines of up to €4,000 and/ or imprisonment. The use of unlicensed providers can invalidate your insurance cover. The PSA publishes details of all persons who have been prosecuted for using unlicensed providers. Buying security services When buying a security service, you should always check the following: • That your provider is licensed. The PSA website, www.psa.gov.ie, provides a register of licensed contractors, as well as further information on licensing. • That they have a valid tax clearance certificate. • That risk assessments, design proposals and other documents are specific to your premises. Never accept generic documents. • That you receive a certificate of completion for all installation and maintenance work. • That you receive a compliance statement confirming that all equipment complies with the machinery directive.
The PSA recommends using PSA licensed security guards to manage queues as they have been trained to deal with incidents that might arise.
If your provider cannot meet these simple requirements, you should ask yourself what the consequences are for your business.
46|Retail News|July / August 2020|www.retailnews.ie
Security: Cash Solutions
PCS offers closed cash management solutions Closed cash management is a method of dealing with cash which not only addresses store security concerns, but also the efficiency of retail cash processes. PREMIUM Cash Solutions (PCS) is the exclusive distributor for Gunnebo cash automation products. Gunnebo is the number one supplier in Europe for its retail cash automation offering. PCS is a nominated supplier to Musgrave, BWG, Maxol and Circle K. “The SafePay product is the most cost-effective closed cash management product in the marketplace, with a typical return on investment of less than 18 months, and with our finance packages, it provides immediate benefits to a retailer’s bottom line,” explains Thomas Desmond, Head of Business Development, PCS. SafePay is a secure and efficient way for retailers to handle cash transactions in a busy retail environment and can be configured to suit your retail experience - customer self-pay, customer self-service or cashier operated.
With SafePay, from the moment the customer pays the cash can be kept secure until it is picked up by a collection service. Closed cash management is a way of accepting cash transactions in-store and at the same time ensuring that staff do not have to come into contact with it. From the moment the customer pays, the cash can be kept secure until it is picked up by a collection service, so there is no need for manual handling of cash in the front or back office. Many people rely on cash for access to goods and services; it remains an essential means of payment. Closed cash management allows retailers to continue accepting cash, while staying vigilant when it comes to security and hygiene. Benefits of cash automation As well as improved customer service, increased productivity and reduced costs, closed cash management provides the following benefits:
SafePay is a way of accepting cash transactions in-store and at the same time ensuring that staff do not have to come into contact with it. Secure and hygienic cash automation Cash is typically manually handled six times in a retail environment, from the moment it leaves the customer until it reaches your bank account. What if you could accept cash but eliminate interaction with it?
• Reduction of staff involvement in cash handling by up to 95%; • Greater cash process efficiency; • Better end-to-end security; • No robberies or discrepancies; • Safer staff and customers; • Improved hygiene; • Full control over cash processes; • No cash differences; • Solid return on investment. Contact the PCS sales team for a no obligation consultation on (01) 5616000 or visit www.premiumcashsolutions.com.
48|Retail News|July / August 2020|www.retailnews.ie
Foodservice
Where to next for Foodservice?
Bord Bia has published a foodservice industry White Paper, detailing the devastating effect of the Covid-19 pandemic on the sector and equipping the Irish food and drink industry with forecast data and possible scenarios as they plan for the remainder of 2020.
THE Covid-19 pandemic and the associated lockdown has had a massive impact on Ireland’s foodservice sector. At the end of 2019, a Bord Bia report predicted overall island of Ireland growth of 4.2% for foodservice (4.5% in the Republic of Ireland and 3.4% in Northern Ireland). Covid-19 has, unfortunately, made those figures redundant and Bord Bia has issued a White Paper, coauthored by global foodservice research specialists Technomic, charting three possible scenarios for the remainder of 2020 as the industry moves to a phased re-opening in a transformed operating environment.
The scale of the challenge Forecasts are based on current industry reporting and research, recent announcements and interviews with restaurants, distributors and other associations, along with economic forecasts for the remainder of 2020. Based on a ‘best case scenario’ and taking into account the impact of falling tourism figures, the out of home market in Ireland is predicted to fall in value from €8.5 billion at the beginning of 2020 to €4.7 billion by the end of this year. Against a forecast ‘worst case scenario’, the market could fall by as much as almost 60% or €5 billion in
value. “While acknowledging the clear and ongoing damage to the Irish foodservice market, it is also important to begin thinking about how the industry restarts and what permanent changes may ultimately “stick” into the future,” explains Maureen Gahan, Foodservice Specialist, Bord Bia. “We understand from listening to food and drink suppliers servicing this market that access to timely data and insights is crucial for them as they look to revise their plans and activities for the second half of 2020.” The out-of-home channel was
Retail News|July / August 2020|www.retailnews.ie|49
Foodservice needed to cover fixed costs, much less allow them to generate a profitable existence. Aside from the Government’s phased plan, which may change depending on public health advice, there are many other variables in play that are still unclear—consumer behaviour, the ultimate path of the virus and the success of businesses once they reopen. Taking these variables into account, Bord Bia’s White Paper examines three possible scenarios for what the industry may look like at the end of 2020.
Maureen Gahan, Foodservice Specialist, Bord Bia. one of the most severely impacted by Covid-19, not just in Ireland, but worldwide, experiencing a near total collapse due to the temporary shutdown of the hospitality sector, Gahan admitted: “However, we also know that it is a hugely resilient industry and we have already seen a number of outlets transitioning their businesses to takeaway and home delivery. Similarly, we have seen examples from our food and beverage producers that are pivoting their businesses to meet the new needs of their foodservice customers.” White Paper Co-author, David Henkes, Technomic, said, “Foodservice will certainly see contractions in 2020, erasing years of growth and share gain from the retail sector. However, we remain bullish on the longer-term viability and resurgence of the industry, as the economy recovers and as consumers grow more confident living in the age of Covid-19”. Within Ireland, the foodservice industry has been challenged as never before, and the goal of the White Paper is to begin to quantify the scale of the impact on the industry and what the landscape may look like as this situation progresses, as well as asking what the foodservice industry will look like when this is over. The foodservice industry has largely expanded over the past 10 years as the Irish economy grew. Factors such as employment rates and income growth all help support higher away-from-home spending; while tourism and foreign investment dollars (especially in the tech sector) also contribute to strong growth across multiple foodservice segments. The economy in the Republic of Ireland had been growing faster than the wider Eurozone over the past several years. With the rapid collapse of the Irish economy (now projected by the European
Commission to be nearly an 8% decline), the longer-term outlook is unclear. Some rebound is expected in 2021 based on current projections; however, much uncertainty still exists, including in unemployment numbers, with the European Commission forecasting that Ireland will have an annual unemployment rate of 7.4%, below the estimates of the Irish Department of Finance, which has projected an unemployment rate of almost 10% by the end 2020, with an average unemployment rate of approximately 14% across the year as a whole. The collapse of the tourist industry will also have a huge effect on foodservice. According to the Irish Tourism Industry Confederation (ITIC), the Irish tourism industry earned an estimated €9.3 billion in 2019, and of this total, approximately €2 billion was spent on food and drink. Given travel restrictions in place both in ROI and many other countries, it’s clear that tourism revenue will be a fraction of what had been spent in the past several years. What can industry expect in 2020? April and May saw the foodservice industry in both the Republic of Ireland and Northern Ireland essentially shut down, although some operators reopened in a take-away or home delivery capacity. Phase 3 of the Government’s reopening plan allows for dine-in business in restaurants from the end of June, with pubs that don’t serve food further restricted until July 20 at the earliest (correct at time of going to print). Even as the industry begins to reopen, additional challenges remain with social distancing capacity constraints that are currently in the guidelines, and these rules may prevent many outlets from operating at a level
Scenario 1 – Best case outlook In this scenario, restaurants reopen at the end of June as announced, but Bord Bia also assume a recession in the second half of 2020 as is widely forecasted. In the Best Case Outlook, there is a short-term foodservice resurgence due to pent-up demand and a return to more regular economic activity relatively quickly (but based on Government guidelines). It also assumes some localised reactivation of stayat-home orders as some limited virus resurgence returns. This also assumes a relatively strong domestic tourism activity in late summer 2020, as well as some return to office and educational activities in September 2020. The forecasted Best Case Outlook results in a €3.8 billion smaller industry than 2019. Scenario 2 – Middle case outlook This scenario is a mid-point between the optimistic and pessimistic estimates, with an overall loss of €4.3 billion for foodservice in 2020. Scenario 3 – Worst case outlook Similar to the Best Cast Outlook, in this outlook, Bord Bia assume restaurants reopen and that recession occurs in 2020. The Worst Case Outlook, however, assumes recessionary impacts will cause continued weakness in consumer spending and less overall spending and tourism activity. More widespread virus resurgence will require regional stay-at-home mandates throughout the year. Universities will not reopen in this scenario and most white-collar work will remain at home (rather than reopening offices). This scenario results in a contraction of €5 billion over 2019’s figures. Key trends Coming out of this pandemic, there are certain trends that will accelerate in the short term and may have a longer-lasting impact on the industry over the course of the next few years. With the broader outlook still unclear,
r
ce on
e
ll
t
d
ns
50|Retail News|July / August 2020|www.retailnews.ie
Foodservice including the speed with which the industry returns and changing consumer sentiments toward restaurant and foodservice usage, these issues have been identified as potential disruptions that should be included in any company’s strategic analysis of potential responses to the pandemic. These macro trends will generally be true across most foodservice sectors Scenario 3: Worst Case Outlook and have impact not only on operators but will reverberate through the supply Similar to the Best Cast Outlook, in this outlook, we chain. On this basis, it is important assume restaurants reopen and that recession for food and drink manufacturers to occurs in 2020. The Worst Case Outlook, however, understand potential implications for assumes recessionary impacts will cause continued their own product offerings.
weakness in consumer spending and less overall
1. Decreasedand emphasis on activity. More widespread spending tourism customisation/ made-to-order virus resurgence will require regional stay-at-home This will be driven by labour challenges mandates throughout the year. Universities will not and a move toward value seeking among reopen in this scenario and most white-collar work many consumers. It seems likely that operators will focus more on grab-andwill remain at home (rather than reopening offices). go and pre-prepared items. of all types. This may also mean more 2. Continued in off-premise Taking intoinvestment consideration all of thesegrab-and-go and packaged items in factors, the This crisis has shown that having any foodservice segments that formerly outlook for the total foodservice industry is shown off-premise strategy to diversify risk is below. Note that the forecasted Bestwould have avoided them. Case Outlook a must. Expect more types of operators results in a €3.8 billion smaller industry than 2019. to invest in off-premise, whether it’s 3. Acceleration of channel blurring This could go as high as €5.0 billion This crisis has shown that restaurants in lost revenue takeout or delivery. Digital strategies will become more important to operators under the Worst Case Scenario. can function as grocers and that fullservice restaurants 2020 Forecast Outlook can offer (Nominal Change in Consumer Spending) more convenience Best Middle Worst options. In Case Case Case Ireland and QSR -37% -43% -49% globally, restaurant Full Service -50% -57% -65% operators Pubs -60% -65% -69% are selling ingredients Coffee Shops -25% -30% -34% or kits as part of their Hotel (F&B) -53% -60% -67% offering; Other Commercial -60% -64% -68% this may continue as Business -43% -38% -64% an additional Health -10% -11% -12% revenue source. The Education -37% -53% -64% food industry Other Institutional -4% -7% -11% will likely further blur Total Industry -45% -51% -57% the lines between Scenario Industry -€2.8B -€3.2B -€3.6B retail and Contraction ROI foodservice, Scenario Industry and within -€1.0B -€1.1B -€1.3B Contraction NI foodservice, more service Total Loss in options will 2020 Island of -€3.8B -€4.3B -€5.0B be found Ireland across segments, Note: Initial estimates subject to revision including
takeaway, delivery and even more drivethrough. 4. Reduction (or removal) of selfservice While the ultimate consumer mindset won’t be clear until this pandemic passes, it seems likely that many operators will reduce or remove selfservice stations. This includes buffetstyle service, self-service beverage, bakery cases and even self-service ordering kiosks. While self-service may not disappear completely, changing methods and dispensing styles, as well as a renewed hyper-sensitivity to sanitisation to ensure safety, will be necessary. 5. Ghost/delivery kitchen acceleration As the industry resets, more operators may decide to eliminate the dining room altogether to capitalise on longer-term, off-premise trends. 6. Renewed interest in single-use packaging The trend over the past several years has been toward more sustainable options and banning/ reducing certain types of packaging. We expect to see more focus on packaging (and excess packaging for off-premise orders). An emphasis on sustainable packaging may be reduced in the short-term to mid-term, however, as safety concerns becomes a primary driver for product selection. 7. Streamlined/smaller menus As operators streamlined menus during the pandemic, many will continue to focus on those items that drive maximum revenue post-crisis.
Retail News|July / August 2020|www.retailnews.ie|51
Foodservice 8. Labour Restaurants and hospitality was one of the later industries to open up, and so the labour challenges (e.g., recruitment and training) that were experienced before this crisis could potentially worsen as former employees find other opportunities. 9. Drinks business challenges Social distancing will continue to be challenging in pubs. Pubs that rely on wet (drink) sales will be under more pressure than those that have a strong food offering. 10. Consolidation While this may manifest most clearly in the restaurant space, we are also likely to see acquisition of some players throughout the supply chain. Those that are vulnerable will face significant challenges from larger players and in some cases, potential closure. The White Paper reveals a host
of sector specific expectations, from coffee shops to restaurants, pubs to hotels. When it comes to the forecourt/ convenience sector, Bord Bia expects some refocus by convenience operators on retail fundamentals, including a renewed focus on the grocery and pre-packaged food business. Within foodservice, self-service beverage and other self-service stations are vulnerable and could potentially be removed or reduced in number and scope. They also believe that there are likely to be more operators that get involved with delivery as a growth and diversification strategy. It’s become very clear that the Irish foodservice industry will not bounce back to pre-pandemic levels immediately. The White Paper breaks the process of getting the industry back on track into four phases: Survival (contain and minimise damage); Start (tiered reopening, with limited capacity and a slow return to normal operations); Strengthen (industry recovery as consumer confidence returns); and Surge (investment and growth as we move from a mindset of firefighting to one of rebuilding). It warns, however, that it may take years to reach pre-pandemic sales levels. Outlook and recommendations Foodservice in Ireland will certainly see contractions in 2020 and may fall to as low as 45% of pre-pandemic spend levels by the end of 2020, erasing years of growth. However, the White Paper is confident about the longer term viability and resurgence of the industry, as the economy recovers and consumers grow more confident living in the age of Covid-19. Given the challenges in predicting exactly how and when the industry re-opens, Bord Bia recommend the following to best position companies so that they can ensure they are “open for business”:
Food/Beverage Suppliers • Innovate around the likely conditions of the “new normal” (e.g. need for labour saving solutions, touchless solutions, pre-packaged/single serve items, menu re-engineering); • Understand the likelihood for increased focus by customers in off-premise solutions and how your business can support this; • Assume the need for more business flexibility, particularly in areas such as payments, minimum orders, order lead times etc; • Develop business contingencies based on how both chain and independent restaurant customers
could evolve; • Emphasise the long-term viability of foodservice internally to maintain a focus on the segment by senior leadership.
Distributors • Develop regional and localised strategies to determine the vulnerability of the business and the likely timeline for reopening; • Evaluate other parts of the foodservice and restaurant business to further diversify your customer base; • Work with operators on payment flexibility, minimum orders, etc. Operators that survive this pandemic will look to work with distributors that demonstrated a partnership approach. Foodservice Operators • Focus on training staff—Having cross-trained staff that can handle multiple duties will be critical; • Assess and evaluate the menu to focus on items that are most profitable and can travel well; • Understand your critical areas that are vulnerable to consumer perceptions of hygiene and work to build contingencies; • Maintain and build relationships with your route-to-market partners; they will be critical to “opening” the foodservice industry; • Prioritise safety and sanitisation. Bord Bia has a range of industry supports available, including a dedicated www.bordbia.ie/covid hub containing relevant and useful insights, supports and services available. “Our main message to producers at this stage is to take a flexible and adaptable approach, identifying products and solutions that are relevant to industry operators as they re-open their businesses,” concludes Maureen Gahan, Bord Bia. “We encourage food and drink businesses to avail of the range of supports and services available to companies via our Navigating Change programme. Bord Bia will continue to monitor developments and will present a more in-depth analysis at the end of the year as the situation evolves.” The full White Paper is available at: www.bordbia.ie/globalassets/ bordbia2020/news--events/irishfoodservice-whitepaper-2020/bordbia-irish-foodservice-industrywhitepaper-2020.pdf.
52|Retail News|July / August 2020|www.retailnews.ie
Packaging
Will the pandemic affect packaging?
David Little, Chair of the Irish Packaging Society, examines the impact of the Covid-19 pandemic on Ireland’s packaging industry, and what it could mean for the FMCG packaging of the future. WHAT a strange few months this has been for all of us. A real challenge to how we do business, a harsh judgement on our customer mix and a clear ruling on who and what is really important in our personal and business lives. It has been a strange time. Some sectors and people have never worked harder, like those great people at the frontline. Many other sectors that have had their businesses totally wiped out, at least in the short term. These companies face real challenges, to get up and running. Bringing in and paying for new stock, getting back their staff and making ends meet, with the impact of social distancing adding cost, or undermining revenue opportunities. While any number of these sectors deserve comment, I am going to look at the general issues and the impacts on the broader packaging sector in this article. In general, the packaging sector worked well through the Covid crisis, particularly where they supplied food and pharma sectors and therefore qualified for exemptions and were able to continue working, even if with a reduced work force. This, of
course, wasn’t without difficulty, as engineering service support and supply chains were affected. Not to mention distancing issues at work and the possibility of being short-staffed with people out sick, ill or in isolation. While some food packaging flexible film and other providers were up a bit, the general result was that most packaging companies, although busy, were down 20% or more on last year. The benefit of less travel and sales expenses helped to offset things a little, but it has been a very challenging period for all. The impact on recycling As we were all at home and couldn’t go out or eat out, this impacted on the recycling sector in a big way. Normally the vast bulk of their collections are from a small number of large commercial operations (hotel, restaurants, factories etc.), but as a result of Covid, they had the reverse of this, only collecting from households, but with an increased volume and very little on the commercial collection side. You can imagine this completely changed the volume and profile of the waste, adding cost at every stage. An interesting outcome of Covid is that it has highlighted one of the key functions and benefits of packaging, protecting the product. We have now seen many historically loose food items being bagged or wrapped, like fresh breads, pastries, coffee stirrers etc., and will probably see a drive back to portion packs, rather than large size dispensers, when the foodservice sector gets back up and running. Even the encouraged use of reusable coffee cup has been slowed by coffee shops, as they understandably do not wish to handle them. This outcome unfortunately goes against the ethos of reducing unnecessary
Retail News|July / August 2020|www.retailnews.ie|53
Packaging About the author:
DAVID Little is Managing Director of Leonard Little & Associates Ltd (Est. 1976), a packaging trainer, packaging consultant and machinery agent for the corrugated sector. David has over 30 years’ experience in the packaging industry. David is a Print Technologist (DIT) and a Packaging Technologist (IOP). He is Chair of the Irish Packaging Society, a member of the UK Packaging Society board, Head Trainer IOM3 (Packaging) and a Fellow of the Institute of Materials, Minerals and Mining.
Supermarkets, brand owners and their suppliers, including packaging companies, have all done a pretty impressive job of taking care of their staff and customers, while trying to handle increased sales, keeping the shelves full and maintaining their supply chain. packaging and may complicate the planned single-use plastics legislation due next year. It will be interesting to see how this will be handled and if the legislation needs to be changed or postponed. Supermarkets, brand owners and their suppliers (including packaging companies) have all done a pretty impressive job over this period, taking care of their staff and customers, while trying to handle increased sales, keeping the shelves full and maintaining their supply chain. This has not been easy with the pressures of staff shortages, increased stress levels and all with hit-and-miss raw material supply.
Corrugated packaging continues to rise in demand, as one of the key packaging substrates, essential for product distribution: outers, SRP’s, displays, trays and of course eCommerce.
The potential effects of stronger online sales Online retailing has grown exponentially and eCommerce sites have been the big winners from Covid, with grocery shopping experiencing unprecedented demand. Many retailers had to Display/POS graphics take on extra staff to deal with demand for delivery and clickThe display / POS graphics sector has assisted these retail and-collect services. This all begs the question: what will stores and workplaces, with all sorts of signage, floor graphics, people do afterwards? Will they go back to the high street, or screens and barriers. Just as well, as their traditional area do they find online shopping so convenient that the trend will of Point of Sales stands and displays have been hit hard continue? There could be big repercussions to this in terms during these times. I imagine we will see fewer of these type of employment, retail property, waste collections, packaging of POS marketing campaigns for the next while and those volumes, couriers, and even packaging design. that do happen will be expected to last longer, giving a real A further shift from the supermarket shelf to online will challenge to the agencies to build stronger brand stories and to challenge brand identity. If large numbers of people are traditional print companies to cope with falling volumes. buying their weekly food shopping online, it could start to impact on the design and substrates used in these FMCG product packs. While websites will continue to show the photo image of the branded product, shape and colour, does the delivered pack still need to represent the brand visually / physically in the traditional way? Could the product pack be plainer, with a basic print or cheaper substrate to suit a new shorter supply chain, or maybe the use of refillable packs could increase for this online business? There could actually be some positive sustainability arguments made in favour of this, but will most people go back to the traditional model and what percentage won’t? This is the If large numbers of people are buying their weekly food shopping online, it big question. could start to impact on the design and substrates used in FMCG product packs.
54|Retail News|July / August 2020|www.retailnews.ie
Packaging: Technology
Looking for a retail tech revolution? It starts with the packaging
Stora Enso, a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper globally, believe that technology is the answer to making operations such as packaging ‘greener’ for retailers. EVERY retail business wants to cut costs and increase profits. Almost every business, nowadays, also wants to improve environmental performance. Often, the two go hand in hand: data shows that three out of four millennials are prepared to pay more for a sustainably produced product. For retailers contending with traditionally slim margins and fierce competition, these things are especially important. So, how to create a leaner, greener retail operation? Unsurprisingly, the answer is technology. Perhaps more surprising for some is where to start: the technology of packaging. RFID is key Radio-frequency identification (RFID) technology has been around for some time now, but what is new is the ability to cost-effectively print an RFID label onto paper or fibre, with no need for plastics or harmful chemicals. This is the gamechanger because it means RFID technology can be incorporated into all sorts of products and packaging without an impact on waste streams and recycling, and without inflating costs. That brings a number of innovations out of the realm of ‘what if’ and firmly into ‘why not?’. The RFID difference The ability to inexpensively track every package or product is a revolution for inventory and supply chain functions. A 2016 survey from EKN-Kurt Salmon estimated a 12% return on
investment for reduced time and labour costs, mainly through more efficient or removed cycle counts, 10.3% for improving backroom to front-of-store inventory accuracy and 10% for increased store replenishment. Realtime, accurate data is transformative for keeping tabs on a high-volume, highspeed retail environment. Another major advantage of RFID tags are the strides they offer in tamper proofing. An anti-tamper seal incorporating RFID technology can easily be checked at each point of the supply chain and a digital stamp records the time, location, reading device and package status, storing this data in the cloud. If a problem is detected, it can be narrowed to the precise point in the supply chain it occurred and alert retailers immediately. Customers can also interact with the RFID tag using their smartphone to verify their packages are untampered-with, building trust with the retailer. Once customers start using phones to interact with packages, the possibilities extend far beyond tamper proofing. With use of NFC (Near Field Communication) enabled phones, the entire customer product experience can be reimagined.
Retail News|July / August 2020|www.retailnews.ie|55
Packaging: Technology Interacting with a food package, for example, could bring up information such as best before dates and recycling advice. Or a retailer could use this vector to advertise promotions and special offers, events or similar products the customer might like. This could both help retailers boost their own sales and also create new revenue streams through advertising or marketing partnerships. Back to bricks and mortar? RFID technology is undoubtedly a boost to e-commerce, but could it also be a lifeline for beleaguered bricks and mortar stores, too? The cashless, tillless store concept has attracted a lot of attention, enabling automatic tracking of what customers put in their basket and charging their accounts afterwards; however, there are less extreme implementations as well. The smart-shelf concept can revitalise the in-store experience. A smart shelf uses weight and RFID technology to detect which product has been lifted from the shelf. A display can then alert the customer to product characteristics, special offers and other product recommendations. The process can become interactive, offering the customer a deeper, more informationrich experience. An extension of this is the concept of New Retail, where unmanned e-kiosks in non-traditional point of sale environments, such as offices, hotels or transportation hubs, facilitate on-the-go purchases using a smart phone. No doubt this is only the tip of the iceberg and savvy retailers and marketers will find many more
Once customers start using phones to interact with packages, the possibilities extend far beyond tamper proofing. innovative ways to use smart RFID technology to improve profits and the customer experience. Plastic not so fantastic However, any discussion of retail technology that focuses purely on the digital only tells half the story. Some of the most important technological advancements in retail won’t play out on phones, tablets and stock management systems. In fact, plastic replacement in packaging will surely be one of the most transformative. Consumers increasingly want greener alternatives to harmful plastics, from renewable sources rather than fossil fuels. Retailers who give
them these options will be rewarded with custom. However, plastics are used for a reason. They offer fantastic properties at low prices. Traditional paper and fibrebased alternatives can serve for some applications, but the technological leap underway is the development of new renewable plant-based materials that can fully replace plastic packaging at an attractive cost. Not only do these materials themselves offer environmental advantages in terms of origins and recyclability, they can also result in reduced packaging size and weight. This means more products per shipment, less fuel consumption and therefore reduced costs and emissions savings. For those who embrace both the digital and analogue technological revolutions in packaging, the opportunities are staggering. A more efficient, precise and cost-effective way to do business, opening up a whole new type of customer experience and all the while reducing environmental impact – and winning plaudits and custom in the process. So, if a retailer is looking for a tech revolution, a good place to start might be with the packaging.
About the author:
How do you create a leaner, greener retail operation? Unsurprisingly, the answer is technology, and packaging technology is the place to start.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction and paper. The company employs 25,000 people in more than 30 countries and its shares are listed on the Helsinki and Stockholm stock exchanges.
56|Retail News|May 2020|www.retailnews.ie
What's New AIR PURIFICATION FOR RETAIL WITH TAC V+ FROM CROSS HIRE
TIPPERARY WATER LAUNCHES NEW TETRA CARTON
CROSS Hire Services have launched the TAC V+, an innovative and technologically advanced mobile Hepa H-14 air filtration unit, on the Irish retail and hospitality market. Developed in Germany due to the Covid-19 pandemic, this unique high-performance air cleaner provides permanent air pollution control and virus filtering in high public traffic areas. The specially designed Hepa H-14 filter delivers over 99.995% air filtration, hospital operating room levels, but in a unique mobile plug-and-play unit. In addition, the 24-hour filtration system heat treats and kills any air borne molecules captured in the Hepa filter. The presence of the machine running also gives your employees and customers a visual sense of reassurance. Available for sale or rent. For more details call 1890 247266 visit: www.crosshireservices.ie/clean-air-range/room-air-cleanertac-v/.
TIPPERARY Water has launched its new 500ml Tetra Carton water. Having listened to consumers, who were looking for an alternative to single use plastic, the new ecofriendly carton is made up of 88% plant-based materials, with even the cap derived from sugar cane. The pack has just 14% fossil plastic – the lowest in the category. Its production has lower carbon emissions than the company’s standard plastic bottle and the carton can be completely flattened and placed in the recycling bin for kerbside collection. The launch is supported through a social and digital out-of-home campaign, which will aim to educate consumers on the benefits of choosing a more eco-friendly option in the convenience water category.
DIAGEO CREATES PLASTIC FREE SPIRITS BOTTLE
SEARCH TO FIND IRELAND’S BEST BANANA BREAD
DIAGEO has created the world’s first ever 100% plastic free paper-based spirits bottle, made entirely from sustainably sourced wood. The bottle will debut with Johnnie Walker, the world’s number one Scotch Whisky, in early 2021. It comes as Diageo announces that it has launched a new partnership with Pilot Lite, a venture management company, to launch Pulpex Limited, a new world-leading sustainable packaging technology company. To ensure that the technology can be used in every area of life, Pulpex Limited has established a partner consortium of world leading FMCG companies in non-competing categories, including Unilever and PepsiCo, with further partners expected to be announced later in the year. The consortium partners are each expecting to launch their own branded paper bottles, based on Pulpex Limited’s design and technology, in 2021.
WITH home baking now firmly viewed as something of a national pastime, celebrity baker and chef, Donal Skehan has come together with Fyffes to find Ireland’s ‘best banana bread’ recipe. “There are as many different ways of baking banana bread as there are of enjoying the banana itself,” revealed Skehan. “Our aim is to capture as many ideas, ingredients and methods and to share them far and wide.” Reward will go to the overall winner and best junior baker, with recognition also given for originality in a number of other areas. For more information, visit fyffes.com.
ECOSTRAWS.IE LAUNCHES THE WORLD’S FIRST PLASTIC-FREE PPE A LIMERICK company has just introduced the first fully plastic-free certified PPE to Ireland in a bid to help companies protect both their teams and the planet. EcoShield visors are now available from EcoStraws.ie, helping to tackle both the demand for PPE in the ‘living with covid-19’ era and playing an important role in the reduction of plastic pollution. Company founders Brian O’Callaghan and Sarah Keyes are pictured wearing the EcoShield.
STROODLES: THE PASTA STRAWS STROODLES has launched new pasta straws to provide an environmentally friendly solution to the single-use plastic crisis and rise of greenwashing from the paper straw industry. Stroodles are durable and flavourless, vegan, 100% biodegradable and are edible raw or cooked after use. “While we’re a very logical and effortless solution to the plastic problem, Stroodles is not just a straw company,” says founder Maxim Gelmann. “Our driving goal is to become a vehicle for change and we hope that Stroodles can act as an enabler, subtly inspiring people to question how they consume everyday items.” See stroodles.co.uk for more information.
It’s your Call‌ You
At the IGBF we assist the families of over 300 of your colleagues every month. These families are more unfortunate than ourselves and without your support such assistance would not be possible... But we still need your help to continue making the difference.
To Donate: ww.igbf. For Assistance: ww.igbf.ie/help/our_help.html For Queries: info@igbf.ie
Registered Charity No: 6577 Registered Friendly Society No: 1775
l
88% plant based materials.
Smaller carbon footprint.
100% Recyclable
14% Fossil plastic Lowest in the category
Available now in your local Cash & Carry Join us on our eco-friendly journey #strongertogether