Retail June News 2012

JUNE 2012

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www.retailnews.ie|June 2012|Contents|3

Contents Retail Ireland News

Home Grown Winners SUPPORTING Irish jobs is just as important now as it has ever been in the 37-year history of Guaranteed Irish.

We talk to Elizabeth Hunt, Marketing Manager at Guaranteed Irish about the importance of the supporting Irish brands. Indeed, if consumers increase spend on Guaranteed Irish goods by €4 a week, it could create over 6,000 jobs! RETAIL NEWS looks at the role of Guaranteed Irish and profiles some indigenous brands that continue to stand the test of time (Page 28).

Also inside, you will find the first in a new regular series of stories supplied by Retail Ireland (Page 14), where Director Stephen Lynam updates you on the organisation’s work on a number of issues, as well as their engagement at European level, where so much of Irish regulation originates.

We look to the future of retailing, with technological advancements making today’s FMCG sector, and the supply chain in particular, unrecognisable from that of a decade ago. Chris Donnelly, Head of IT at ADM Londis, talks us through that group’s five-year journey to e-Retailing, encompassing everything from the development of iSIS, their e-wholesaling platform, to this summer’s move to centralised chilled distribution (Page 16).

Finally, we report from the ECR Ireland annual conference, which asked how the digital age is shaping our industry and how we can take advantage of it. Topics covered include changing consumer confidence, shrinkage and how to curb it, and how Macro Space Planning can work for you (Page 24).

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4 News

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EU Tackles Costs of Credit Card Fees; Minister Welcomes CRO Report.

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Retail Crime on the Rise; Lottery Margin to Remain at 6%; Barry Group Wins Foodservice Award.

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€25m Credit Card Fraud in 2011; Show Me I.D - Be Age OK Awareness Week; Kerry Group Named Most Reputable Food Manufacturer in Ireland.

The first in a new series of columns from Retail Ireland,

by Director, Stephen Lynam, includes a Retail Ireland Council meeting with Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, rising consumer sentiment and reaction to the Yes vote in the Fiscal Treaty.

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Traditional Retail Business Model is Broken; Promotions Shield Consumers from Inflation; Private Label Thrives.

16 Retail News Interview

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Shop Profile

12

Norman Foley’s SPAR Express shop and forecourt in Killorglin, Co. Kerry, is his third store with the group.

He talks us through the changing face of convenience retailing in Ireland.

Chris Donnelly, Head of IT at ADM Londis, talks us through what the Group’s move to e-Retailing means for store owners, the evolution of iSIS and Londis’ brand new centralised chilled distribution model.

SHOP 2012 takes place in the RDS Simmonscourt from September 25-27, promising a host of new features.

In-Store Bakery

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Odlums Ingredients are the leading suppliers of ambient bakery ingredients to the Irish baking industry, and have an in-store bakery solution for you, regardless of the size of your store.

On The Vine

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52

Working smarter is easier than ever before, thanks to the ubiquity of high end technology.

Are you keeping up?

Published by: Tara Publishing Co. Ltd.,

Editorial & Marketing Director: Kathleen Belton

Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

Editor:

johnwalshe@tarapublishingco.com

Tel: (01) 2413095 Fax: (01) 2413010

kathleen@tarapublishingco.com

Web: www.retailnews.ie Email: retailnews@tarapublishingco.com

adrian@tarapublishingco.com

Buying and stocking Irish goods on your shelves makes a real difference to Irish jobs.

We profile some of the homegrown brands guaranteed to fly from your shelves.

Retail Technology

Managing Director: Fergus Farrell

Adrian Murphy

ECR Ireland’s annual conference examined how the digital age is shaping our industry in Ireland now and how we can take advantage of it.

SHOP 2012

28

7 $ 5 $

Advertising: Kathleen Belton

24

46

Guaranteed Irish

Kathleen Belton Editorial & Marketing Director

John Walshe

ECR Ireland Conference

Subscription to Retail News: €95 plus VAT Email: aoife@tarapublishingco.com

To advertise in RETAIL NEWS, call (01) 2413095 or email retailnews@tarapublishingco.com

Origination by: Rooney Media Graphics

Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

Reproduction without written permission is strictly prohibited.

Printed by: W&G Baird

Jean Smullen looks at the sparkling wines to stock this summer.

REGULARS & REPORTS

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Industry News Bread Pet Food Oral Care Market News Drinks News Shelf Life

4|Retail News|June 2012|www.retailnews.ie

News

EU Tackles Costs of Credit Card Fees RETAIL representatives in Ireland have applauded an EU decision banning so-called hidden fees for retailers on card payments. EU judges upheld a 2007 decision that prohibited “multilateral interchange fees” (MIF), finding them contrary to European law. MIF allows the card-issuing bank to keep a percentage of the payment card transaction.

“The big challenge in the retail trade is MasterCard and Visa trying to pass draconian costs on to us,” Frank Gleeson, Retail Ireland Chairman, told RETAIL NEWS. “Any European ruling that limits their ability to charge us more money is a positive thing. We effectively have a duopoly. Laser cards are all going on credit card platforms.

As debit cards in the Irish market become Visa debit cards or MasterCard, more control passes to them in relation to payment transactions. We need limits on the amounts credit card companies can charge effectively they’re just putting

more cost onto retailers and consumers.”

The EU ruling only pertains to cross-border credit and debit card payments in Europe, although Retail Ireland is calling on the government to replicate this ruling for card transactions within Ireland.

Tara Buckley, RGDATA Director General, said: “It’s important there is clear transparency about the fees associated with the use of credit and debit cards. We’re trying to point out the pitfalls retailers face. Customers often complain about not being able to use cards for low amount transactions.

When low transactions are used with cards, the retailer loses money because of the fees. You can’t run a business when you’re not making money on your transaction.” Úna Dillon, Head of Card Services & Communications at Irish Payment Services Organisation (IPSO), told RETAIL NEWS there is a misunderstanding about credit card fees. “Retailers pay a fee

- the merchant service charge - to their acquiring bank. The retail bank pays an interchange fee to the cardholder’s bank to guarantee the payment. As far as we’re concerned, these fees are made known on their websites. We always say to retailers, if they have an issue with the merchant service charge, there are six acquirers in Ireland. They should shop around.”

MasterCard said the EU ruling would make payments

more expensive for consumers. However, EU Competition Commissioner Joaquin Almunia said: “Today is a good day for payment card users in Europe. In its first judgment on the issue of multilateral interchange fees, concerning the MasterCard case, the court confirmed that these fees restrict competition and inflate the cost of card acceptance by merchants without leading to benefits for consumers.”

Minister Welcomes CRO Report “OWNERS of small businesses are a central part of the economy and their ability to succeed and grow underpins our future potential for jobs, growth and prosperity,” stated Minister for Small Business, John Perry TD, welcoming the 8th Report of the Credit Review Office (CRO).

“Small businesses are not just a vital part of our economy - they play a vital role in our society and local communities as well,” said the Minister, who went on to describe the Credit Review Office as “a vital independent service for SMEs

that works towards ensuring that businesses with existing or future potential viability can gain access to credit”.

Over the past three months, the Credit Review Office has received 44 applications from SME’s who have been refused Credit by AIB and Bank of Ireland; the two pillar banks.

Work is ongoing on 31 cases.

Of the cases completed in this quarter, 17 bank refusals were overturned, resulting in the two banks subsequently supplying €2m of credit, supporting a further 140 jobs in the SME

sector. Since the Office’s establishment in April 2010, 197 appeals have been received.

Of the cases completed, 69 of these refusals were overturned resulting in the banks subsequently supplying €6.9m of credit, supporting 683 jobs in the SME sector. 48 of the cases have been upheld in banks’ favour.

John Trethowan, Credit Reviewer, encouraged any viable SME who has been turned down for a loan application to contact the Credit Review Office at 1850 211 789 or at info@creditreview.ie.

Minister for Small Business, John Perry TD.

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News

Retail Crime on the Rise CRIMES cost small businesses €1.5bn annually, yet only 8% of proprietors are confident criminals are apprehended, a new report reveals. The 2012 ISME Crime Survey discovered that 20% of companies do not report crimes to the Gardaí, due to the time, money, and resources involved, Mark Fielding, ISME CEO, told RETAIL NEWS. “Also, there is a perception the perpetrator won’t be caught,” Fielding noted. “Even if the perpetrator is caught, business owners have a total lack of confidence in the judiciary. The amount of time they spend in the courts, cases being postponed until a later date. By the time it gets to court, there’s almost a revolving door where the perpetrator is out before the owner/manager. It seems, from the sentencing, there is a lack of understanding by the judiciary. They feel that a crime against an individual is more serious than a crime against a business.”

The ISME report revealed that 65% of companies were not covered by insurance for their loss due to crime, a 2% increase from 2011.

The report, which surveyed 648 businesses across Ireland, found that 44% of retail businesses were affected by crime.

For retailers, shoplifting is the primary culprit. 15% of ISME’s respondents revealed that staff were responsible for theft.

Shoplifters are becoming more sophisticated, revealed Fielding. “They’re going for higher priced goods. There are organised gangs roaming around the country hitting shopping malls. One recent Garda report said some of these gangs

were avoiding the main routes because of speed cameras. They’ll hit a mall in Portlaoise, then move on to Thurles or Mallow. There’ll be up to six of these people. Someone will reconnoitre the place in the preceding days, so they’ll know the shops with static guards and they know where the cameras are.”

A Garda spokesperson told RETAIL NEWS that CCTV cameras should be strategically placed. “A lot of the cameras are vaguely pointed into the shop - you’ll see people in the distance doing something but you wouldn’t be able to identify the criminal. If you see people entering or leaving, you have a better chance of getting a conviction later on,” he said.

Barry Group Wins Foodservice Award

Pictured receiving the Stonehouse ‘White Hat’ Award for 2012 are (l-r): John McAllen, Commercial Director, Jim Barry, Managing Director and Niall Hartnett, HR/Supply Chain Director, Barry Group.

BARRY Group has won the prestigious Stonehouse ‘White Hat’ Award for 2012. ‘White Hat’ is an exclusive foodservice sector label developed four years ago by Stonehouse to offer value and excellence to the industry.

Since its inception, the ‘White Hat’ brand has continued to develop from strength to strength, with the annual award presented to the company which demonstrates best performance across the ‘White Hat’ portfolio throughout the year.

Lottery Margin to Remain at 6% RETAILERS will keep their 6% margin on sales from National Lottery products, Minister for Public Expenditure, Brendan Howlin TD has indicated. There were concerns retailers would lose their margin after the Government announced plans to sell the lottery license to private operators.

Vincent Jennings, Chief Executive of

the Convenience Stores & Newsagents Association (CSNA) said he was pleased at Howlin’s commitment to the retailer margin. “We would like to think the incoming company will be fully open to discussion and consultation with the retailers, who are selling the product for them,” said Jennings.

“This Award is hugely significant for us as it recognises the massive effort the entire Barry Group team puts into maintaining the very highest standards in the foodservice industry,” said Jim Barry, Managing Director, Barry Group. “It’s fantastic to see all the hard work coming to fruition and the best accolade of all is undoubtedly to be recognised by our peers within the industry”. Barry Group also holds the overall Stonehouse Gold Standard Award for Excellence.

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News

€25m Credit Card Fraud in 2011 CREDIT card fraud accounted for over €25m of losses in 2011, according to a report from Irish Payment Services Organisation (IPSO). Of that fraud, €10.4m was absorbed by the card-issuing banks, while retailers were hit with the remaining €15.4m. However, convenience and grocery stores in Ireland are less at risk due to chip and pin technology.

“We have chip and pin deployed practically across the market, so we have a lower incidence of credit card fraud in retail shops,” confirmed Frank Gleeson, Retail Ireland Director. Úna Dillon, Head of Card Services & Communications at IPSO, noted: “We’d have an issue with a handful of merchants who have not updated their systems to use chip and pin. I’d imagine they’re few and far between. When we issued chip and

pin, counterfeit and fraud was a major problem. Chip and pin pretty much puts a stop on face-to-face fraud for the retailers.

If a stolen card is used with a pin and the customer disputes that, the liability is on the card-issuer, not the retailer.”

Online transactions make up 71% of payment card fraud. However, solutions such as 3D Secure and Card Security Code help secure online activity. “Security tools are available for retailers,” explained Dillon.

“3D Secure is like chip and pin for the Internet.”

Meanwhile, 2011 saw a continuation of key trends for payments in Ireland, according to IPSO: cheques reduced by a further 8%, the number of debit card transactions rose by 14% and the value of ATM cash withdrawals reduced by almost 8% from €5,000 in 2010 to €4,618 per

SHOW ME I.D - BE AGE OK AWARENESS WEEK ‘SHOW Me I.D - Be Age OK’ Awareness Week was launched recently by Minister for Children and Youth Affairs, Frances Fitzgerald TD, with the aim of preventing the sale of age restricted products to underage minors. The campaign has been supported by the CSNA, RGDATA, the NFRN, JTI Ireland, NOffLA, the VFI and the South Dublin Chamber of Commerce.

Minister Fitzgerald described the campaign as Minister for Children and Youth Affairs, Frances “an extremely valuable step Fitzgerald TD, launches ‘SHOW Me I.D - Be Age OK’ Awareness Week at SPAR Clondalkin. in preventing the sale of age restricted products to children.

It is important to assist those at the front line, the retailers, by giving them easy access to support materials and information. I am very pleased that all trade associations involved have been able to do this with the Show Me I.D- Be Age OK campaign.”

In order to promote the Show Me I.D Awareness Week a nationwide media campaign was rolled out. A campaign poster appeared on over 1,200 tobacco vending machines around Ireland, a Show Me I.D branded token for cigarette vending machines was distributed to bars and restaurants and Show Me I.D promotional packs, including folders, t-shirts, caps and badges, were provided to retail stores across the country.

“It is a source of great pride for all involved in the Show Me I.D Awareness Week that it has received such enthusiastic support from retailers,” said John Freda, General Manager, JTI Ireland. “The Awareness Week will no doubt help to promote the campaign and make it the most widely used youth access prevention programme in Ireland.”

Resource materials and a staff training programme are available on www.showmeid.ie which aims to advise retailers how to avoid the underage sale of tobacco products.

person per annum in 2011.

Finally, IPSO has announced the appointment of retired Garda Commissioner Fachtna Murphy as its new independent Chairman.

Kerry Group Named Most Reputable Food Manufacturer in Ireland KERRY Group has been named the most reputable food manufacturer in Ireland in the annual Corporate Reputations RepTrak 2012 study. This is the most comprehensive study of corporate reputations undertaken in Ireland by Corporate Reputations and their global partners the Reputation Institute, based on responses from over 3,720 members of the general public in Ireland and part of a wider global study carried out in over 40 countries.

Of the 101 largest and most visible organisations measured this year, Kerry Group experienced the most significant improvement in reputation, increasing its score by almost ten points and securing second place in the overall ranking. Google ranked first for the third year in a row, while Kerry Group, Apple, Cadbury (now part of Kraft Foods), and Volkswagen Group all followed in the top five. Other high performers included Kellogg and Dairygold.

See www.corporatereputations.ie for information.

Pictured are (l-r): Tánaiste and Minister for Foreign Affairs and Trade, Eamon Gilmore TD; Frank Hayes, Director of Corporate Affairs, Kerry Group plc; and Niamh Boyle, Managing Director, Corporate Reputations.

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News

Traditional Retail Business Model is Broken “THE traditional retail business model is clearly broken.” Such is the view of Dr Richard Cuthbertson, Director of the Oxford Institute of Retail Management at Saïd Business School, who have just launched a major 18-month study into the future of retail.

Dr Cuthbertson is aware of “the negative impact of retail sector change – redundancies, bankruptcies and takeovers, as retailers try to adjust to new channels and formats, reduce costs, improve efficiency and survive. At the same time, emerging technologies are providing the best retailers with new opportunities to interact with customers, with greater potential to improve service, and increase loyalty, sales, and profitability.”

The clock is ticking for

traditional stores, he warns, thanks to factors such as rising retail costs, changing customer expectations, the need to rejuvenate and reshape our town centres, remodel out-oftown stores, and develop the many opportunities presented by online and mobile technologies.

Sponsored by Intel, the research project will focus on the relationship between digital and physical retailing as retailers look for the optimum approach to managing these two offerings, as well as reviewing retail experience overseas and technological developments, to shape and test possible scenarios for retailing in the years ahead. According to Dr Cuthbertson, “The outcome will be the most thorough picture available of what the future of retailing may look like.”

Promotions Shield Consumers from Inflation

PROMOTIONS across the FMCG sector have proved crucial to sustaining volumes during a period of austerity that has seen consumers become more frugal about what and how they purchase.

This is one of the findings of market measurement firm SymphonyIRI Group’s European Pricing and Promotion Special Report, which reveals the pressure facing grocery brands and retailers to keep costs down for cash-strapped shoppers.

The report reveals an overall increase in promotions across most countries in the last three years. They now account for more than 56% of all grocery products sold in the UK and an average of 25.6% in

Europe. The level of promotion is lowest in Germany at 11.6% and sits at 17.9% in France, 18.5% in Spain, 21.5% in The Netherlands and 29.7% in Italy.

In major categories across Europe, confectionery has the largest volume of products sold on promotion at 29.2%, followed by non-alcoholic drinks (28.9%) personal care (28.8%) and alcoholic drinks (28.5%).

Other key highlights from the research include: • An increase in the use of secondary off-shelf fixtures to lift volumes.

• ‘Every Day Low Prices’ could challenge the face of in-store promotions.

• Clever pack sizes mask the intensity of price increases: many manufacturers are opting for smaller pack sizes to keep prices stable and affordable.

• Own labels continue to challenge brands.

“The promotional arms race across Europe may be coming to a head,” concluded Rod Street, Executive Vice President of Consulting at SymphonyIRI Group. “Now is the time for brands to be more strategic and less tactical in their use of pricing and promotions.”

The full report can be downloaded from www.symphonyiri.eu.

PRIVATE LABEL THRIVES THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending May 13, 2012, show a tough trading environment for retailers as total grocery sales decline by 0.2%.

“Retailers’ own brands continue to appeal to shoppers in the face of depressed household incomes, growing at 2.3% year on year, as shoppers focus on saving rather than spending,” noted David Berry, Commercial Director at Kantar Worldpanel. “Sales of branded goods have dropped over the past year and now account for 53% of the market, down from 54.1% last year. In contrast, we are seeing own label products thriving for retailers like Tesco, SuperValu, Aldi and Lidl.

“Among the retailers this month, Aldi, Tesco, SuperValu and Lidl have all grown faster than the market, placing increasing pressure on their competitors. Aldi’s growth of 20.1% has led to a record share for the retailer this month, breaking through the 5% mark to 5.2% and further demonstrating the importance of price to consumers. Tesco has also posted a new record share this month of 28.4%, increasing from the 27.4% it posted in the same period last year and solidifying its number one status in Ireland.”

SuperValu continues to perform well following the launch of its SuperValu range. As a result, its market share has increased by 0.4 points to 19.8% following a tough trading period this time last year.

Grocery inflation stands at 2.2% for the 12-week period ending May 13, 2012, up from 1.8% in the previous period but significantly below the 3.5% seen in November 2011.

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Industry News BALLYGOWAN STRIKES GOLD WITH MCDONALD’S

BALLYGOWAN Natural Mineral Water has teamed up with McDonald’s in a deal which will see the Limerickbased company become the exclusive bottled water supplier to McDonald’s 81 restaurants across Ireland. McDonald’s Ireland sells over 1.25 million bottles of adults and children’s water in Ireland annually. “We are delighted to team up with Ballygowan Natural Mineral Water, an iconic Irish brand, in our restaurants, supporting Irish manufacturing and Irish jobs,” said Adrian Crean, Managing Director of McDonald’s Ireland, who is pictured with Ruth Kirwan, Britvic Ireland, and some of Ireland’s Olympic hopefuls from the DCU Sports Academy, which is sponsored by McDonald’s Ireland, at the announcement.

Flahavan’s Wins International Marketing Award FLAHAVAN’S scooped the International Marketing Award at the prestigious 2012 All Ireland Marketing Awards recently. Although a household name in Ireland for over 200 years, Flahavan’s recently pinpointed export growth to the UK and US markets as areas of opportunity. In 2011, Flahavan’s launched three new products in the US with premium positioning. A major rebranding exercise of the entire Flahavan’s range for the UK market was also undertaken, in addition to new product launches. “The AIM Award is a terrific achievement for everyone at Flahavan’s as we’ve been working hard in recent years researching the US and UK markets and identifying the opportunities for our products,” said John Noonan, Sales & Marketing Director, pictured (right) with James Flahavan International Business Development Manager, Flahavan’s, accepting the award from Cera Ward, Google EMEA.

GALA ANNOUNCES NEW WHOLESALE ARRANGEMENTS FOR DONEGAL JOHN Mc Bride, Cranford Ltd, the long established Donegal-based wholesaler, in partnership with Padraic Tuffy Ltd, have been appointed by Gala Retail Services as their new service provider for Donegal, following the departure of Morris Brothers Ltd from the Gala Group. “ It will be a seamless transition for retailers and means that their businesses will be fully supported through two long established wholesalers and the central billing team at Gala Retail Services,” stressed Gary Desmond, Gala CEO.

Big Money Game is Back THE National Lottery’s popular summer TV game show, The Big Money Game, and associated National Lottery Scratch Card, is back. Brian Ormond and Sinead Kennedy (pictured) will host the exciting new series, where each week, five players from around Ireland will win great cash prizes and, if their luck is in, they could go home with a fantastic €250,000. The associated Big Money Scratch Card is available now at National Lottery agent stores, priced at €3.

Almost 900,000 cash prizes ranging from €5 to €100,000 are ready to be won instantly on the Scratch Card, with over €6.4m in instant prizes, while players who match three stars have a chance to appear on the show for the top prize of €250,000.

COLA-COLA LAUNCHES €125K FUND FOR NONPROFIT ORGANISATIONS COCA-COLA have launched the ‘Coca-Cola Thank You Fund’ and announced the availability of €125,000 in funding to community and voluntary groups promoting active lifestyles throughout the island of Ireland. The ‘Coca-Cola Thank You Fund’ is open for entries until July 6, 2012 and will be accepted through www.cocacola.ie/thankyou. The ‘Coca-Cola Thank You Fund’, which is being supported by The Wheel and The Northern Ireland Council for Voluntary Action (NICVA), has been developed to support innovative projects and initiatives that are helping people and communities adopt and enjoy more active lifestyles. “Through the Fund, we not only want to support relevant initiatives which are already in place, we particularly want to hear from organisations that have new and innovative ideas, which they want to introduce and require funding to make happen,” said Erica Roseingrave, Public Affairs and Communications Manager, Coca-Cola HBC Ireland.

www.retailnews.ie|June 2012|Retail News|9

Industry News Moy Park On the Ball for Irish Open MOY Park has secured a two year sponsorship deal with the European Tour to support the 2012 Irish Open at Royal Portrush and the 2013 Irish Open at Carton House, Kildare. “Moy Park has signed up for a two year sponsorship deal which will see us support this year’s iconic event at Royal Portrush and next year’s event in Kildare,” Nigel Dunlop, Moy Park CEO, commented. “The Moy Park brand is now Ireland’s number one poultry brand and we are one of the largest companies in Northern Ireland, so we felt it was important to lend our support to such a prestigious event. The Irish Open will attract thousands of visitors to Northern Ireland and will provide an opportunity for us to showcase not only our world-class hospitality but also our fantastic local produce.” Pictured at the Balmoral Show, where the sponsorship was announced are (l-r): Nigel Dunlop, Moy Park CEO; First Minister Peter Robinson; and Tony O’Neill, Moy Park Director.

KRAFT UNWRAPS A WINNER KRAFT Foods have unveiled an interactive digital out-of-home campaign, which combines the use of a 6-sheet with digital camera technology and Facebook. The Cadbury Unwrap Gold digital 6-sheet on Charlotte Way in Dublin invites passers-by to take a photo and be in with a chance of winning a pair of tickets to the London 2012 Olympic Games, with a selection of these photos uploaded daily to the Cadbury Ireland Facebook page. To enter, consumers press a button on the 42” digital touchscreen and then align themselves to the silhouette on-screen. When they are ready, they press a button to activate the in-built camera which takes a photo of that person in front of a Cadbury stadium backdrop. After taking the photo, they can then enter the draw for tickets to the London 2012 Olympic Games using a keyboard displayed on screen.

Pictured are Ross McDonnell, PML; Orla Fitzpatrick, PHD; Amanda Moran, Eclipse Media; Karl Tyndall, Kraft Foods Ireland; and Laura Hendrick, Clear Channel.

APPOINTMENT AT GSK GARETH Smyth has been appointed General Manager, GSK Consumer Healthcare Ireland. Gareth joins GSK from Keelings, where he held the position of Sales and Marketing Director and sat on the Board. Since January this year, GSK Ireland’s consumer healthcare business in Ireland has merged with its UK business, allowing it to bring together and leverage the strength of its nutritional and consumer divisions, encompassing brands such as Lucozade, Ribena, NiQuitin, Panadol and Sensodyne. Amalgamating has created a business with a combined strength of over €1 billion in retail sales and allowed customers to benefit from the synergies created by their shared businesses. “I am very excited to bring the benefit of my FMCG experience to help drive GSK Consumer Healthcare forward in Ireland and capitalise on the opportunities our new larger business has created for us in Ireland,” Gareth noted.

TOPAZ LAUNCH NEW APP TOPAZ has launched a new free ‘Topaz App’ which will enable customers to find the Topaz site nearest to them from the network of over 300 sites nationwide. One element which will be particularly useful to motorists running low on fuel will be the feature which picks up their current location via GPS and maps the route to the nearest Topaz site. Special App offers will be available to users every month and customers will be notified through push notifications when new offers become available on the App. To launch the new App, Topaz is running a competition in which one lucky winner who signs up for the App will receive a ‘Golden Ticket’ which will grant them free Topaz fuel for a year. Model Tiffany Stanley is pictured with the new Topaz App.

Barry Group Suppliers Golf Classic PICTURED at the recent Barry Group Suppliers Golf Classic are (l-r): Richie Ormonde, Liam McNamara and Olivier Mougel from Mars Ireland; Jim Barry, MD, Barry Group, and Richie Verling from Mars Ireland. This year’s golf classic took place at Fota Island Golf Club in Co. Cork and proved an excellent opportunity for colleagues old and new to catch up over 18 holes on one of Ireland’s premier golf courses. Following a great day’s golf, the Mars Ireland team were eventually crowned overall winners at a prizegiving ceremony held at Curraheen Dog Track, receiving their prize from event organiser and Barry Group MD, Jim Barry.

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Industry News HAPPY BIRTHDAY FOR LANDMARK MOTORWAY SITE SPAR Texaco Junction 14, the landmark motorway services site on the M7, has announced that it is to create 20 new jobs and invest a further €500,000 in expansion of the premises. The announcement was made at a special one-year anniversary celebration of the locally owned Irish business, which also includes Irish brands Supermacs and Insomnia. The business has grown from 40 to 100 employees since opening last June and the owners, Liam and Donal Fitzpatrick, are to begin recruiting for another 20 positions to be filled over the next six months. Pictured are (l-r): Jarlath O’Dwyer, Marketing Manager, Supermacs Ireland; Liam Fitzpatrick; Bobby Kerr, Insomnia; Enda Riney, Country Chairman, Valero Energy (Ireland) Limited; Donal Fitzpatrick; and Willie O’Byrne, MD, BWG Foods.

CALOR LAUNCHES LIGHTWEIGHT CYLINDER CALOR have launched their new lightweight 6kg patio gas cylinder with a contents gauge, the first of its kind to be launched onto the Irish market. It is also the first cylinder on the market to have a contents gauge, so consumers never have to worry about running out again.

This is an exciting new innovation for the leisure market, with added features that are not currently available in the cylinder industry in Ireland. To promote the launch of the new 6kg lightweight patio cylinder, Calor are running a competition for the chance to win €500 in holiday vouchers. See www.calorgas.ie/calor-living for more information. Rosanna Davison is pictured launching the new Calor 6kg lightweight patio gas cylinder with Paula Kelly, Marketing Manager, Calor Gas.

IGBF CHARITY GOLF CLASSIC THE North West Region Irish Groceries Benevolent Fund 2012 charity golf classic took place on Monday, 18 June at Westport Golf Club, followed by a presentation dinner in the club house.

This year’s event was sponsored by Connacht Gold and all funds raised will be distributed amongst 60 families in the region who, through illness, accident or business failure, find themselves in difficult financial circumstances. Pictured at the launch of the event in Connacht Gold’s Westport store are front: Gearoid Surlis, SuperValu Tubbercurry; Paul Gibbons, milk agent, Westport; and (back) Liam Campion, Manager, SuperValu Westport; Padraig Gibbons, Chairman, Connacht Gold; Sean Henry, area manager, C.G.; Richard Lennon, area manager, SuperValu; and Ray Darcy, SuperValu Ballyhaunis.

BLOOMIN’ SUCCESSFUL SHOW FOR BORD BIA BLOOM, Bord Bia’s annual gardening, food and family festival, celebrated a record-breaking final day as over 1,200 GIY (Grow it Yourself) fans set a new Guinness World Record for the largest number of people sowing seedlings at once. Bloom welcomed almost 80,000 visitors over the June Bank holiday weekend to the 70 acre site in Phoenix Park, Dublin, which is celebrating its 350th anniversary this year. “Now in its sixth year, Bloom continues to evolve and grow with our changing times. It is a showcase of the indigenous talent, creativity and integrity that characterises Irish food and horticulture and its capacity to contribute to our economic wellbeing,” said Aidan Cotter, CEO, Bord Bia. Pictured at Bloom 2012 are celebrity chef Neven Maguire with An Taoiseach, Enda Kenny TD.

LOVE IRISH FOOD BRAND ELEVATOR AWARD IN recognition of the significant impact food and drink manufacturers make to the Irish economy and to further encourage support amongst consumers, Love Irish Food has announced a Brand Elevator Award which will see one Irish food and drink manufacturer benefit from a €200,000 advertising campaign. Love Irish Food have teamed up with Independent Newspapers to offer this significant prize to the brand which best illustrates the effect the campaign could have on its business. Whilst the brand does not need to be a member of Love Irish Food, it does need to meet the criteria for membership i.e. 80% of the value must be derived from manufacturing in the Republic of Ireland and the brand must use Irish ingredients where available. See loveirishfood.ie for more information. Pictured are judges Tom Trainor, Chief Executive of the Marketing Institute of Ireland, which is supporting the initiative, Darragh McCullough, Irish Independent, and Kieran Rumley, Love Irish Food.

12|Retail News|June 2012|www.retailnews.ie

Shop Profile

Norman Foley’s SPAR Express shop and forecourt in Killorglin, Co. Kerry, is his third store with the group. He talks us through the changing face of convenience retailing in Ireland.

Store owner Norman Foley, pictured outside SPAR Express, Killorglin, Co. Kerry.

Norman’s SPAR Performance UNLIKE many store owners, Norman Foley did not start his career in retail, nor did he have any close family history in the trade. Norman’s path to retail began nine years ago when he and his wife decided to move back home to Kerry to raise their young children.

“I’m different, I suppose, in that I don’t have a long history in the trade,” Norman admits, “but I was a sales manager in Dublin and in most respects, retail is sales, so I decided I wanted to give it a go.”

The year was 2003, and the climate was vastly different to the Ireland of 2012. Back then, there was a definite air of confidence in the economy.

Norman bought his first store in Milltown, Co. Kerry: “It was a small shop and we transformed it into a 3,000 square feet SPAR store,” he recalls.

So how were those early years as a novice retailer? “While I got great support from SPAR and worked hard, there were still a lot of lessons to be

learned,” he says with a smile. “Back then wasn’t like now. Your customers were time poor and cash rich: now they are time rich and cash poor. In those early years, I wouldn’t have been doing regular stock takes. Sales were good, but I learned the hard way that sales

don’t equate to margin, so I became much better at making sure the back room was in order.”

Norman now does weekly stock takes on his fuel, cigarettes, wines and other high value goods. “The early years were a baptism of fire, I

www.retailnews.ie|June 2012|Retail News|13

Shop Profile suppose, and now we’re much better at managing stock. I also have a very good accountant, so that is an extra layer of support when managing such high levels of fuel and other goods.”

Close Family Ties As the economy drove on and times got good, Norman spotted an opportunity to lease two forecourts and SPAR stores in Killarney. “These were great stores but the lease ran out and the landlord took them back, but I have no regrets,” he notes. “They were good businesses, but things move on.” And move he did, first to Tralee where he owns another forecourt and this year to Killorglin, where he took over an old forecourt and transformed it into a state-of-the-art SPAR Express.

“There’s a bit of a story behind this new store,” he explains. “My father is originally from Killorglin, so people in the town remember him. My mother is also from South Kerry, so we have connections with the town, but what I didn’t know until buying the property was that the previous owner, Jacko Foley was, in fact, a cousin of my father’s.”

Norman is also the first forecourt owner in Ireland to become a retailer for a new Irish fuel supplier – Inver fuel. “They are a big wholesale fuel outfit and supply to the likes of Topaz, but they are also entering the retail market and becoming a retail brand,” he explains. “I get a good price with them and this means I can compete very well with other forecourt brands.

It’s important because fuel pricing is now a big issue with shoppers and good fuel prices are a great footfall driver to our stores.”

lifeblood of your business,” he states.

“Today’s customer is very different to the one that was around five years ago and as a retailer, you have to understand this.”

Indeed, Norman has seen a host of changes in his nine years of retailing in Ireland and has learned a lot of lessons along the way. “Obviously, the main difference is the amount of money that is around,” he admits. “Back before the bubble burst, people were very busy and disposable income was plentiful.

Now the customer is very keen on deals. We see it every week with the WOW offers and the way people shop.

I have to say, however, that SPAR was quick off the mark and gave us great grey market offers early on. These are important. What I’ve learned is to change: even as a convenience store owner, you have to change for the shopper and we have done this with great fresh food offers and a high standard of customer service, along with the fuel pricing, of course.”

consolidate what we have at the moment and get this new store into the shape we want it. I’m very happy with it so far and the new layout, lighting, design and equipment is fantastic. It looks great and customers like it. It was great to have the support of Sean Lavin and Colin Power from BWG also: it’s never easy opening a new store – people probably don’t realise the amount of work that goes into a project like this. However, it’s all good and we’ll keep working to make it better.”

With Norman’s entrepreneurial spirit and the back-up and support from SPAR, we’re full sure that he’ll succeed.

Strong Support from BWG The Lifeblood of the Business While Norman is fully aware of the importance of stock control and cost management, he is also keenly conscious of the heart and soul of any retail business: the customer. “At the end of the day, it’s the people who walk through your door that are the

With over 40 staff between his three stores, Norman says times may be tougher for people but his employees are still enthusiastic and keen to do a good job. “I have great people working with me and know most of their families too,” he enthuses.

And what about plans for the future? “The immediate plan is to

FACT FILE Owner:

Norman Foley

Location:

Killorglin, Co. Kerry

Size:

1,500 square feet

Number of Staff: 12 full time & part time Opening Hours: 07:00-23:00, Monday-Saturday; 08:00-23:00, Sundays & Bank Holidays

14|Retail News|June 2012|www.retailnews.ie

Retail Ireland News Retail Ireland – Advancing Our Industry I am delighted to welcome you to

the first Retail Ireland column

for RETAIL NEWS.

body for the ail Ireland is the representative For those who do not know us, Ret 3,000 shops, ed to IBEC. Our members have entire retail sector and is affiliat footwear and ion fash s, , electrical retailer including department stores, DIY ist retailers. ups, symbol groups and special retailers, major supermarket gro up, we are the ail Director of Topaz Energy Gro Chaired by Frank Gleeson, Ret ment, media and resent your interests to Govern voice of retail in Ireland and rep r what you have to say. all other bodies that need to hea do is with ustry’. That means everything we Our tagline is ‘Advancing Our Ind good for that what is good for retailers is the retailer in mind. Our view is er economy. consumers, suppliers and the wid

and to communities n its importance to the economy give , nda age our on h hig ly ious ges. Members of Retail Grocery and FMCG is obv but one that faces many challen or, sect e itiv pet com and ant eavour can help around Ireland. It is a vibr ther in the hope that our joint end toge ges llen cha se tho face to ter slation and help the Ireland know that it is bet id damaging and unnecessary legi avo s, lder eho stak to nce orta the sector highlight its imp industry return to growth. rse. We employ – and the most geographically dive y ntr cou the in r loye emp est of a million people – a The retail sector is the bigg e. We employ around a quarter non bar y, ntr cou the in age vill people in every town and d in the tech sector, for example. multiple of the numbers employe n bad policy making s have been at the brunt of ofte iler reta why t’s Tha n. otte forg labour costs and Too often, these facts are tape and bureaucracy, ever higher red of k thin only ds nee One . and thoughtless regulation ard only rent reviews. ustainable situation around upw local authority charges, or the uns il was not properly was another example of how reta get bud er’s emb Dec last in rate The increase in the VAT g made. considered when decisions are bein mple the responsible nse media scrutiny. Take for exa inte of ject sub the are face we code of practice.

Some of the challenges ail Ireland members to the RRAI Ret of t men mit com the and s role we play in alcohol sale impact is felt in grocery or no media attention but their e littl get n ofte e trad cery gro economy – is a key Other challenges to the and fuel – and the wider shadow o acc tob in e trad it illic The . businesses across Ireland mple. issue for Retail Ireland, for exa our engagement at k on all these issues, as well as wor our on you ate upd will and ways to reach out to the Each month, Retail Irel inates. Always looking for new orig tion ula reg h Iris of ch mu so to connect and inform you of our European level, where ETAIL NEWS is a great way R h wit ip rsh tne par new sectors we represent, this work. , contact us at retail@ibec.ie or services and influence our agenda To join Retail Ireland, avail of our Stephen.lynam@ibec.ie.

Stephen Lynam Director Retail Ireland

www.retailnews.ie|June 2012|Retail News|15

Retail Ireland News Trading Conditions Tough But Consumer Sentiment on the Up EVERYONE in retail knows that trading conditions are difficult. Sales are down by 30% since the height of the boom, though the cost of running your business remains much higher. Nevertheless, there are reasons to be cheerful.

For example, consumers seem to be tentatively optimistic, with the KBC/ ESRI Consumer Sentiment Index showing four consecutive increases in January, February, March and April. This is the first time this has happened since 2007. While the mood of consumers is far from what it was, there is real potential to build upon.

For our part, Retail Ireland and our parent body, IBEC, have decided to take on the role of driving Ireland’s recovery by acting as a driver in restoring domestic demand. One very simple way we can do this is to help build momentum in the feel-good factor by pointing out to consumers the great value that exists. Official data shows that there is almost no goods inflation in the economy at the moment and that the cost of many items is significantly lower than some years ago. Retailers are offering incredible value. Retail Ireland will be making sure as many people as possible know that.

COMMITMENT TO JOB CREATION AND UP-SKILLING A KEY initiative for Retail Ireland this year – and a great offer for our members – is the IBEC Retail Skillnet and in particular the new Bachelor of Business in Retail Management Practice that begins in September. This innovative 3-year programme uses a blended learning approach, combining Work Based Learning, guest lecturers, e-learning and traditional classroom delivery. This excellent programme is targeting retail managers, assistant managers, trainee managers and business owners. Unlike most other degree programmes, learners are awarded credits for learning achieved in the workplace and module assessments are closely linked with making improvements in the workplace. The programme has already received excellent reviews from retail experts representing SMEs and large multinational retail outlets.

The degree programme is available to Retail Ireland members: see www.ibecretailskillnet.com for more details.

Yes for Stability – Yes for Retail THE positive outcome of the Fiscal Treaty referendum and the decision of the Irish people to vote Yes and stay at the heart of Europe was widely welcomed by Retail Ireland and the rest of the business sector. During the campaign, Retail Ireland held a briefing at Clery’s Department Store, Dublin, alongside members who run retail businesses, to set out why a Yes vote in the referendum was vital for consumer confidence and the domestic economy.

We pointed out that a Yes vote would keep the recovery on track and warned that rejection would lead to uncertainty, additional austerity and more economic pain. Having played our part in helping to secure a Yes vote, we will be looking now to what plans Ireland and Europe have to provide stimulus to our shattered domestic economy.

Bruton Engages with Retailers at Retail Ireland Council

RETAIL Ireland members benefited from an hour-long discussion with the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD (pictured) at our recent Council meeting on May 10. The Minister reacted positively to our point-bypoint response to his Action Plan for Jobs, where we spelled out how we could help the Minister achieve his goals, where we differed and, most importantly, how Retail Ireland and retailers themselves were helping to create jobs and improve skills.

We spelled out how joined-up thinking and avoidance of overburdensome regulation, including proposals on sick pay and restrictions on alcohol sales, would only serve to kill jobs rather than create them. Lack of action on bank lending and high rents were also crippling our sector.

Members questioned the Minister directly on a number of issues, from consumer confidence, which he said was central to the Government’s domestic economic agenda, to the need for greater digitalisation of Government services, which Minister Bruton admitted was in need of fasttracking.

We shall continue to engage with the Minister and his officials in the coming months to ensure that retail is at the heart of the Government’s enterprise policy.

Tel: 01-6051558 www.retailireland.ie

16|Retail News|June 2012|www.retailnews.ie

Retail News Interview

*OHUNPUN [OL >H` You Work Chris Donnelly, /LHK VM 0; H[ (+4 3VUKPZ [HSRZ \Z [OYV\NO ^OH[ [OL .YV\W»Z TV]L [V L 9L[HPSPUN TLHUZ MVY Z[VYL V^ULYZ [OL L]VS\[PVU VM P:0: HUK [OL .YV\W»Z UL^ JLU[YHSPZLK KPZ[YPI\[PVU TVKLS THERE was a time, not too long ago, when IT was confined to super-savvy tech companies at the cutting edge of web development and had little real impact on most of us. Not any more.

Technology pervades every aspect of our lives, from how we access news to how we interact with our peers, and the business world is no exception.

“Technology influences every function of ADM Londis,” explains Chris Donnelly, Head of IT, “from store level, where our retailers are increasingly using technology to drive efficiencies on the shop floor, right through to our marketing team, who engage with social media channels, or our sales team, who use different IT

facilities to audit stores electronically: in short, technology permeates every aspect of the business.”

Londis’ move to centralised chilled distribution is the latest incarnation of the group’s wellpublicised management shift to embrace e-Retailing. This shift to e-Retailing has involved a massive €5m investment over the last five years, but that investment is already paying dividends in terms of process efficiency and cost savings, according to Chris. The area most affected has been the supply chain, where the Group’s investment has provided the infrastructure required for a dynamic and responsive supply chain, crucial for a centralised chilled distribution

model which is hugely reliant on accurate, real time information.

“From the stores selling their goods and our ability to capture that information to better inform our buying, to that information going into our re-ordering process, into our business intelligence systems, and then being fed back to our stores and to our sales team, every aspect of the supply chain relies on technology,” Chris explains. “We also share that information with our suppliers in relation to demand forecasting. From a consumer picking up a bar of chocolate in-store right through to that bar being replenished in that store is dependent on IT: the supply chain wouldn’t operate without it.”

www.retailnews.ie|June 2012|Retail News|17

Retail News Interview

So would it be fair to say that there is no comparison between today’s supply chain and that of a decade ago?

“Absolutely none!” he avows. “10 years ago, the entire process would have been pretty much all manual.

We would have had a paper-picking process in our warehouse, as would most of our suppliers. Information sharing would have meant dealing with spreadsheets that could have been three weeks out of date by the time all the relevant information had been brought together. Everything was delayed, even where systems were in place, because of the lack of automation. Now, everything is in real time.”

The iPad Generation The advent of new technology is noticeable right across the Londis business structure. At their Annual Conference last year, the Group invested in iPads for every retailer, enabling them to access Londis’ software capabilities and cloud-based infrastructure through one portable device. The biggest benefit of this was to enable Londis retailers to access Londis’ e-Wholesaling platform, iSIS, while on the shop floor or remotely (see panel on page 19).

“The iSIS system is a business intelligence based procurement system, so the retailer gets up-to-theminute information on out-of-stocks and sales on the shop floor when they’re doing their order. So it’s the right information, in the right place at the right time,” Chris explains

“While other symbol groups may have two or three different reports across multiple systems, we have all the information collated into one seamless system. So the iPad links with their ePoS and they all link through to iSIS, so everything is completely integrated, right from the shop floor.”

Londis’ system makes it easy for retailers to engage in Category Management, by ordering directly from the category plans on Londis’ web portal, as Chris explains: “They just tap the product on the category plan, which brings them straight into iSIS and shows them that product’s sales rank against similar stores, stock availability, the cost, the margin achievable etc.”

According to the Head of IT, iSIS’ biggest benefit is that as a retailer completes their order, the system automatically prompts them if they haven’t ordered one of their top-selling lines, so they can add it to their basket immediately, thus minimising the whole area of out-of-stocks.

Technological Advances Another IT development, Londis’ LEADER web portal, allows retailers to access the most up-to-date legislative information, while another system, Marketeer, which is integrated with their ePOS system, sends all group promotions electronically to Londis retailers, who can then choose which offers will work for them. “We also transfer high res images for each promotion, so the store can not just automatically set up a promotion on their ePOS, they can automatically

generate the shelf-edge labels, posters and all the Point-of-Sale material as well,” says Chris Technology also plays a big part in food safety, particularly in the event of a product recall, where information is disseminated much faster than heretofore and the product can be stopped from sale at the till: “We would stop a product being available for ordering and stop it being available to sell. This would also be communicated via an email and text message to each retailer, which is an automated process.”

While technology undoubtedly makes life easier for today’s retailer, how does it contribute to their bottom line?

“Currently, a lot of our customers are spending more time on the shop floor, possibly because of staff reductions but also because they want to be close to their customers,” Chris notes.” The iPads allow them to fully remote control their ePOS system from the shop floor, whereas previously, they would have had to control all of this from their back office. Our stores also have fully live sales at their end, so they can see instantly if there is a product they have a margin problem with and can fix that instantaneously from the shop floor.”

“

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18|Retail News|June 2012|www.retailnews.ie

Retail News Interview into the supply chain,” notes Chris.

But why the need for centralised chilled distribution now?

“This won’t come as a surprise to anyone in the trade, but the chilled supply chain is starting to slowly break down,” Chris states. “Some suppliers, due to reducing volumes, are going out of business, while others need to have minimum order quantities, which may be beyond quantities which our stores want to order, and other stores in very rural areas might have trouble getting supply altogether. Our centralised chilled offering allows every shop in the Londis group, no matter where they are, to order guaranteed delivery once, twice or three times each week. It opens up an entire new range of product to our stores and it helps to protect us from the continuing disruption to the supply chain.”

Chris Donnelly, Head of IT with Londis, is pictured with Stephen O’Riordan, CEO, at the Group’s 2011 Annual Conference, where the Londis’ e-Retailing strategy came to an exciting climax with the provision of iPads to Londis retailers nationwide.

A Worthwhile Journey Londis’ journey to e-Retailing has not been instant, nor has it been cheap, but it has certainly been worthwhile. The result of a long-term strategy to keep the group at the forefront of retailing in Ireland, it has turned Londis into a much leaner, more efficient business than ever before.

“I joined the company around seven years ago and even then, we could see that we had lots of information that wasn’t really being shared throughout the supply chain,” Chris recalls. “So we decided that we needed to make best use of this information. We could also see that our retail customers, even when times were good, were under pressure with the workload they had on, so we needed to make sure that we were working smarter.”

To this end, Londis implemented a number of initiatives working in tandem, like upgrading the warehouse systems to move from manual picking to voice picking, changing the structure of the information sent to Londis stores, whose ePOS systems in turn needed to be upgraded from DOS-based systems to a Windows-based system to comply with legislation.

“We didn’t expect that we would achieve the benefits we have at this

point in time, but the decisions have proven to be very worthwhile for both Londis retailers and the group,” notes Chris, who estimates that 85% of Londis stores use their iPads on a daily basis to interact with the group.

Centralised Chilled Distribution The latest step in Londis’ e-Retailing evolution is the introduction of centralised chilled distribution across the entire country. A massive project incorporating all aspects of the Londis business, from procurement to IT, finance to customer service and of course, Londis retailers, it saw Londis investing in a full upgrade of their infrastructure to support the new system. Indeed, Chris describes it as “a huge project, one that I could write a book about.”

However, while undoubtedly a big investment, the project brings much greater efficiency to the chilled supply chain. In terms of IT alone, it means replacing 24 servers with two virtual servers, which makes a massive difference in terms of power consumption, along with support overheads, maintenance contracts etc. “There is a big saving in terms of infrastructure as we build efficiencies

“

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www.retailnews.ie|June 2012|Retail News|19

Retail News Interview

THE EVOLUTION OF iSIS

LONDIS’ e-Wholesaling platform, iSIS is the crown jewel in their web portal, not just enabling retailers to order both ambient and chilled deliveries online, but also helping to make the entire ordering process quicker and smarter. Chris Donnelly explains its evolution.

“About five years ago, one of the key things we were looking at was the number of orders we were capturing electronically, and it was at a very low percentage,” he recalls. “When we looked into it, we could see that we were capturing quite a bit of the value of our orders electronically, but most top-up or smaller orders were coming in by phone or fax, which was very inefficient and very costly.

“We decided to put up a basic web portal which allowed customers, rather than going through their entire ePOS system, to put in a top-up order. That worked very successfully and our customers engaged with it. But it didn’t do enough to help our customers maintain the optimum range in-store and it wasn’t really enhancing our sales capabilities as a group. So from that, we started building towards iSIS, which went live in week nine of 2011. It was a very significant development, as it pulled together all the systems we have, including our ePOS system, business intelligence, ERP solutions and our web systems, linking them into one seamless application.”

That was phase one of iSIS, and there have been two significant developments since, the latest of which, phase three, incorporates chilled distribution into the existing platform. “So iSIS is one system which now offers two ordering portals to retailers, one for ambient product and one for chilled,” Chris notes.

Perhaps the biggest benefit of iSIS is in the way it helps retailers in ordering, doing the legwork for them.

“If I generate an order today, the next time I use iSIS, I can tell the system to re-use today’s order and I can then make adjustments to it. I can even let the system create an order of a certain number of cases, based on top sellers from similar stores: if I don’t have the time to physically generate an order myself, I can press two buttons and have an order generated for me,” Chris notes. “Ultimately, where we want to go to is suggested ordering, whereby the system will prompt the store with what it has worked out is the best order for that store, and the retailer can either accept that order or make adjustments to it. If Londis retailers really engage with this system, it will mean massive time savings and massive cost savings right across the board, because the visibility we will have of demand patterns will be second-to-none.”

The Future Technology is changing all the time, sometimes extremely rapidly.

As Head of IT, Chris is perfectly placed to assess the impact evolving technology will have on the way the grocery and FMCG market works in the future.

“One of the things we will see is the adoption of more consumer-type hardware in a business environment,” he says. “For example, we are going to be using iPhones as hand-held devices, with a laser scanner attachment.

While an iPhone, at approximately €500, may seem expensive as a phone, when you compare it to the handheld scanners the stores currently use, which cost up to €3,000, you can see consumer technology, because of its widespread adoption and lower manufacturing cost, working its way into the system.”

He also feels that information sharing throughout the supply chain is going to get more and more sophisticated. “As volumes decline, lost sales (out-of-stocks etc) are one of the process failures that can be eliminated through proper systems,” Chris declares. “In any supply chain, you will have between 2-5% in lost sales, which in a declining market is a huge amount of sales which can be captured by having supply chain systems right.”

While it may be hard to predict the future of retailing, one thing is certain: e-Retailing is here to stay and Londis will remain at its forefront.

“Even in a small shop, you might have up to 4,000 product lines, so the range of products you are controlling, from stock quantities to margin and security issues, is phenomenal. There is no way an army of people could manage it,” Chris concludes. “So technology has always been core to any retail operation. What we have been able to do by getting our stores to upgrade their ePOS systems is to integrate marketing systems for the Point-of-Sale; to integrate iSIS to help ordering; we’ve integrated budgeting modules; we have EDI available to our stores. It is all about working smarter. There are often less people to do these jobs, so you need systems in place to take this workload off the retailer. We don’t really have the scope for trying things out any more: the margin for error has gone. We need to have the right products available in-store all of the time, so it’s vital that our systems are apt and applicable.”

20|Retail News|June 2012|www.retailnews.ie

Retail Technology

9L[HPS ;LJO! Cracking the Code Working smarter is easier than ever before, thanks to the ubiquity of high end technology. Are you keeping up?

ONE of the world’s biggest technology companies has urged European retailers to innovate with the in-store shopping experience in order to expand and grow in today’s current economic environment. The accelerating rate of technological change has dramatically altered consumer buying behaviour, according to Kobi Elbaz, Director, Client Solutions, HP Personal Systems Group.

He argues that emerging trends outside the store, such as increased interaction with touch-based technologies, are creating new demands on retailers to create similar in-store experiences to meet shopper expectations.

HP is advising retailers to integrate the most effective aspects of online shopping with their mobile and in-store offerings in order to provide a seamless customer experience that encourages shopper loyalty and increases sales.

Integrating Multiple Channels Traditionally, retailers have invested heavily in bricks and mortar stores, but there are now multiple channels to integrate. According to new HP research, more than half of the top 50 European retailers use more than three channels to sell direct to

consumers. However, shoppers’ everincreasing expectations for seamless cross-channel shopping experiences mean they need to better connect the dots between their mobile, online and in-store offerings.

According to HP’s research, nearly all of the top 50 European retailers (98%) have a physical store presence, whilst just 86% have a website. Even more surprisingly, more than a third of European retailers (34%) offer a mail order catalogue, although just 28% have a mobile commerce app and 30% have an m-commerce website.

Some European retailers are also

RETAIL SOLUTIONS: SMART RETAIL TECHNOLOGY RETAIL Solutions’ product is based on intelligence. Their retail management system ensures any retailer can make intelligent, informed decisions by ensuring they have correct information at the right time. For more than 17 years, Retail Solutions have been providing retailers with high quality, yet low cost retail management systems, which assist them in increasing sales and reducing costs, thus allowing them to pass savings on to their customers.

Retail Solutions provide one of the most advanced retail management systems for the most advanced retailers.

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their chosen markets. With over 850 sites in Ireland and a rapidly increasing presence in the UK and Australia, Retail Solutions have been able to work closely with their customers to ensure business critical information is at their fingertips at any given time. Indeed, investing in a Retail Solutions system can see margins increase by up to 14%.

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Retail Technology Barry Group Hails New e-Billing Service THE Barry Group recently replaced its manual billing system with a superior e-billing service that has already improved efficiencies and will save them tens of thousands of euro per annum. Over a two-month period, they successfully moved hundreds of customers to the new service.

“Celtrino Express has provided us with a platform to implement a series of efficiencies within our business by providing a mechanism for us to eliminate hard copy paper and snail mail correspondence with our customers,” says Peter O’Sullivan, Head of IT at the Barry Group. “Our customers now receive their invoices via a portal and have the ability to review, search, file, query and interrogate their invoices electronically. This solution saves us five man days per week and will save us tens of thousands of euros per year in paper and postage. We plan to use this system further in subsequent phases to provide a central repository for all of our correspondence with our customers and ultimately eliminate the need for any hard copy correspondence.”

Celtrino have also recently provided ADM Londis with an on-demand platform run entirely in the cloud to manage its accounts payable function.

experimenting with Facebook as a channel, although just 2% are actively offering F-commerce capabilities.

Despite the significant investment going into multiple channels, many retailers have not yet connected the various elements to take advantage of additional sales opportunities.

For example, according to research from YouGov, 78% of multi-channel shoppers found price offers available online which were not subsequently available when they went in-store.

HP points to industry findings which highlight that consumers are today much more adept at shopping cross-channel, but argues that many still choose to complete their purchase in a store. 51% of shoppers, in fact, say that they research online and then buy in-store. Furthermore, 74% of smartphone shoppers made a purchase as a result of using their smartphone.

Of these, 76% have purchased in-store, 59% online while only 35% have made a purchase via their smartphone.

Creating a Cross-Channel Experience HP recommends that retailers create a more seamless crosschannel experience in-store by firstly investigating how to better integrate data from their expanding number of channels. Secondly, retailers much be increasingly ‘context-aware’ and create personalised experiences in the store which are much more aligned to their online and mobile offerings. Finally, businesses must incorporate consumerfriendly technology experiences in-store.

For example, touch-based screens for sourcing product and store information and innovative use of digital signage.

“It’s clear that the experience in the physical store is critical to a shopper’s

final purchasing decision and retailers must combine the best of in-store, online and mobile services and offerings to provide seamless crosschannel experiences in-store,” says Elbaz. “Many retailers are realising that the integration of all these elements will create unique shopping experiences that will encourage customers to browse, learn more about products, and encourage them to return and buy.”

Cloud Computing Here in Ireland, cloud services are reshaping the future of computing, but one of the primary concerns with the emerging cloud paradigm is the lack of standards to guide its adoption and implementation. The National Standards Authority of Ireland, in partnership with the Irish Internet Association (IIA), have launched

new standards, entitled ‘SWiFT 10: Adopting the Cloud – decision support for Cloud computing’ to provide guidance to organisations, both large and small, on the various issues that need to be considered when moving to the cloud.

The result is a comprehensive roadmap for businesses to encompass all Cloud delivery and deployment models. It is intended for use as a means of assessing Cloud adoption prioritisation and suitability. The IIA Cloud Computing Working Group is a collaboration of expert practitioners and business leaders (Chief Information Officers, Chief Technical Officers, Heads of IT, Legal, and Consultancy) from a variety of business sectors and organisation sizes in Ireland.

“Many people are already using Cloud computing in everyday life without even realising it. Services such as e-mail, social networking and photo sharing are all forms of Cloud computing,” says Maurice Buckley, Chief Executive, NSAI. “SMEs in particular will be receptive to this standard, as every effort has been made to make it as user friendly and straightforward as possible. Many businesses are already making the transition, moving elements of their business to the more mature and better known aspects of the Cloud, such as email or file storage. We hope that SWiFT 10 will enable and encourage more Irish businesses to move to the Cloud in the coming years, which we believe will give Ireland an early adopter and market advantage in this space.”

CONTACTLESS PAYMENTS A REALITY EARLIER this year, BWG Foods became one of the first businesses in Ireland to go contactless in partnership with Visa Europe. BWG Foods began accepting contactless payments from the end of April, and the majority of its 900 stores will be able to offer contactless payments by year end. “The increase in contactless acceptance, led by organisations like BWG, has set the scene for a major change in the way we pay in Ireland,” said Conor Langford, Vice President Ireland, Visa Europe.

“The growing contactless infrastructure across Ireland also paves the way for the introduction of mobile Pictured is Conor Langford, Vice President Ireland, payments in the years to Visa Europe and Willie O’Byrne, BWG Foods Managing come.”

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24|Retail News|June 2012|www.retailnews.ie

ECR Ireland Conference

;OL +PNP[HS Revolution ECR Ireland’s annual conference examined how the digital age is shaping our industry in Ireland now and how we can take advantage of it. Topics covered included changing consumer confidence, shrinkage and how to curb it, and how Macro Space Planning can work for you.

HOW is the latest technology and thinking impacting on all kinds of core business issues, from collaboration to in-store technology and the supply chain? These issues are more were explored at this year’s ECR Ireland Conference, which attracted a huge gathering of senior executives from Irish grocery retailers and suppliers.

Attendees included representatives from some of the biggest names in the Irish grocery/FMCG market, including Dunnes Stores, Tesco Ireland, Topaz Energy, Maxol Group, Gala Retail Services, BWG Foods, Procter & Gamble, Britvic, Unilever, Johnson & Johnson, Irish Distillers, Kelkin, Nestlé Ireland, Country Crest, Bord Bia, Edward Dillon, Kraft Foods Ireland, Reckitt Benckiser, Johnson Brothers, Mars Ireland, Valeo Foods, GlaxoSmithKline, PepsiCo Ireland, Kellogg’s, Diageo, GS1 Ireland, Kepak Convenience Foods, Heineken, Richmond Marketing, Danone,

Declan Carolan, General Manager, ECR Ireland.

McCains, Kerry Foods and Cuisine de France.

This year’s key-note presentation came from John Gillan, Senior Industry, Retail Head, Google, who spoke about ‘Grocery Merchandising in an Omni-Channel World’. He spoke about the pace of change, where everyone and everything is becoming connected, where fixed is becoming mobile and e-commerce is simply commerce. Here in Ireland, 62% of the population is online, with 1.2m buyers equating to €437m in online retail sales. Indeed, 48% of retail sales are now either online or web-influenced.

“To win on the high street, retailers and brands must be masters of omnichannel retailing,” he said, including stores, websites, online chat, mobile, direct mail, TV, ad networks and call centres. Companies need to (a) be found when relevant, (b) engage with their customers, and (c) adapt and grow, according to Gillan, who went on

Henry Dummer, Marketing Director, Tesco Ireland.

to cite examples of how companies can do just that.

Companies and brands must differentiate and provide great customer service, he noted, advising them to reach their consumer at every stage of the “new customer journey” across multiple devices, ensuring that they have one single, seamless experience across online and offline channels.

Consumer Confidence Marc Coleman, Economics Broadcaster from Newstalk, spoke of the future and how consumer confidence, though dented by the crisis, has been more robust in the first months of this year.

However, this is not yet translating into growth in the retail sector, which continues to hang in the balance.

As well as emphasising positives that remain in the Irish economy to date, Marc highlighted trends in the economy and government policy to watch out for in coming months that

Hugh Byrne, National Account Manager, Diageo Ireland.

www.retailnews.ie|June 2012|Retail News|25

ECR Ireland Conference could alter the sector for better or worse. Consumers want to spend, he noted, while 2011 was the first year of positive GDP growth since 2007 and unemployment is stabilising.

He went on to call for reform politically (particularly of the Senate), competitively (including well regulated privatisation and liberalisation), nominal wage adjustment (beginning in the public sector by benchmarking all pay and pensions greater than €40,000 PA), and called for a broadening of the tax base without raising the tax/GNP share (including a shift from income tax to a mix of local, indirect and income taxes).

David Berry, Commercial Director, Kantar Worldpanel, provided an insightful presentation on ‘The Importance of Being Different’. He looked at the changing grocery market, from 2007 to 2012. Today, the market is worth €8.9 billion, compared to €8.4 billion in 2007. This equates to 241 shopping trips per annum, compared to 234 trips in 2007. Aldi & Lidl now capture 16% of grocery items, compared to 10% in 2007, while new store openings have helped the multiples hold ground. Branded goods are losing resonance, down to 54% share of grocery value, from 58% in 2007. At the same time, store visits have grown to 3 per week, up from 2.5 in 2007.

However, most shoppers are spending less per visit. In 2007, 29% of shoppers spend under €30, now that is 35%. The percentage of shoppers spending between €30 and €100 remained relatively stable (44% in 2007, 45% in 2012), but the percentage of shoppers spending more than €100 per store visit has dropped from 27% in 2007 to 20% today.

The recession has accelerated existing trends, Berry noted,

John Casey, Co-Chair, ECR Ireland.

highlighting how shoppers have evolved but asking have brand owners and retailers? He spoke of the need for innovation in the market, highlighting brands that have succeeded, despite the current economic climate, and warned brand owners not to forget the older shopper, who makes up 20% of households but 22% of spend. Indeed, older shoppers are less impacted by the recession, less promotion focused, are often daily shoppers, and, more importantly, are predicted to grow by 44% by 2020.

Berry highlighted the Top 10 growth categories in grocery from 2007-2012: • Bakery • Confectionery • Home Cooking • Hot Beverages • Canned Foods • Home Baking • Crisps & Snacks • Ambient Carbs • Frozen Food • Soft Drinks He talked about making shopping easy, engaging, tempting and arresting for consumers through addressing their needs for practicality, convenience, treats and innovation.

is driving consumer decisions. She noted the development of the Business 2 Consumer world, where the source of information has moved from the package or freephone number to an app that uses a scanned barcode.

As a neutral, not-for-profit organisation, GS1’s vision for the internet world is that brand owners can share relevant product information easily with their consumers.

As e-commerce grows, driven by increased consumer use of smartphones and tablets, so does the need for high-quality digital information to support consumer purchases.

Availability of accurate data is an issue which has transformed from a supply chain issue to one of consumer confidence in a more connected world.

She noted the steps taken by GS1, including: • GS1’s TSD Pilot Test, which was successfully completed in eight countries in December 2011, with 30+ brands, over 900 products and five app providers; • Strengthened collaboration with The Consumer Goods Forum (TCGF); • Preparation of Call to Action for TCGF Board in Istanbul.

Collaboration

ECR in Ireland

Xavier Hua, MD, ECR Europe, presented on ‘Collaboration in a crisis - Where do we go from here?’, sharing key learnings from the survey conducted with Mc Kinsey in 13 European countries on collaboration, presenting the ECR vision for the years to come, based on the work undergone with the new ECR Europe co-chairs.

Siobhain Duggan, Business Development Director, GS1 Ireland, spoke on Digital Product Information, highlighting how digital information

Declan Carolan, General Manager, ECR Ireland, spoke on the role of ECR in Ireland, where digital is becoming the new normal. He explained how ECR’s work groups, covering Category Management, Supply Chain, Shrinkage etc, are advancing standards in Ireland. He highlighted the Consumer and Shopper Journey Framework, downloadable from www.ECRIreland.ie. Mapping a C&S Journey involves being clear about the target shopper and understanding the

David Berry, Commercial Director, Kantar Worldpanel.

Ken Hughes, MD, Glacier Consulting.

Jenny Maybury, MD, Category Solutions.

26|Retail News|June 2012|www.retailnews.ie

ECR Ireland Conference decisions made at each point along the journey, Carolan noted, before going on to identify the biggest supply chain challenges as: • Forecasting & planning • Lead time reduction • MOQ reduction • Best availability at the lowest cost • Availability, efficiency & sustainability • Promotions & sales volatility • Shelf ready packaging He also noted the capabilities suppliers and retailers can expect to have in the future, as: • Visibility of sales and stock positions; • Improved supplier supply chain agility; • Higher level of collaboration; • Well networked systems & people that can collaborate across internal & external boundaries, building collaborative relationships; • Efficiency, agility & collaboration will be the new metrics for success.

and cultural challenges of moving from theory to practice in strategic category collaboration, without pulling price or promotion triggers.

Driving Demand Through Technology Ken Hughes, MD of Glacier Consulting, spoke on using innovative technology in-store to drive demand: a shopper 5 senses approach. According to Hughes, one of the major barriers to growing demand in-store is shoppers’ automatic de-selection of most products on-shelf. Routine auto-pilot shopping is the enemy of category engagement, and without engagement, it can be difficult to ensure the shopper marketing strategies employed deliver.

Hughes proposed and presented technological solutions for both shopper insight and engagement, using the shopper 5 senses as our framework.

The focus of the implementation of these technologies is to attain positive shopper disruption: engaging the shopper and adding to their experience as opposed to simply shouting louder at them.

Combining Resources In a fascinating presentation, Henry Dummer, Marketing Director, Tesco Ireland, and Hugh Byrne, National Account Manager, Diageo Ireland, jointly spoke on their ‘Store within a Store strategic category collaboration’.

The project objective was to grow Tesco’s beer, wines and spirits sales and penetration profitably through genuine collaboration. This had to be: shopper inspired; a genuine collaboration - joint investment; scalable and sustainable.

They began by asking the Tesco shopper what they thought, through qualitative research (including accompanied shopping trips and focus groups), as well as a Quantitative Sample of 2,100 shoppers.

They then took on board shoppers’ views (such as those relating to pricing, clear and simple displays, coldness of beers etc), and incorporated these into their new BWS section in Tesco Merrion. The result was an overwhelming endorsement by shoppers, from marketing and merchandising to lay-out and range.

Indeed, the total uplift in Tesco Merrion versus control stores equates to +15%, in the 27 weeks since the concept’s implementation, with new customers up by 14%.

Their presentation explored not only the successful strategic category and retail drivers but also the personal

Macro Store Planning Jenny Maybury, MD, Category Solutions, presented on how to lay-out a retail store, with a practical guide to Macro Space Planning. She covered topics like the changing and challenged shopper; the relevance of Macro Store Planning to retailers, suppliers and indeed shoppers, and how to incorporate this into your business.

Macro Store Planning is a strategic approach to optimising retail floor layouts, taking into consideration: sales, space, over/under performances, store flow, category linkages & adjacencies, hot spots, consumer and shopper demographics. It also allows suppliers to understand category opportunities, and improve their space, position and flow through a wider category/store approach.

She spoke of the genuine need to “clear clutter” in-store and gave concrete examples of how Macro Store Planning has made a real impact to retailers of various sizes nationwide.

On Shelf Availability On the supply side, Andrew Mitchell, International Commercial Director, Technology Solutions, SymphonyIRI, explained how on-shelf availability (OSA) matters more in the digital age.

The average stock-out rate of 8% in Europe is equivalent to 2.3% of European sales, he argued. A

David Cotter, P&G, Co-Chair, ECR Ireland.

3% increase in on-shelf availability equates to a 1% increase in revenue.

2011 saw retailers, manufacturers and service providers come together to identify barriers to address on shelf availability, identifying three steps to success: • Determine your OSA Commitment and Implementation as an ongoing business process; • Assessing where your organisation is in the OSA journey; • Identifying the remaining barriers that exist for your organisation.

Mitchell went on to identify the barriers to OSA, before highlighting ECR Europe’s on-shelf availability self-assessment tool and inviting companies to join the Expert Group Agenda 2012-13.

Curbing Shrinkage Finally, Professor Joshua Bamfield, from the Centre for Retail Research, presented on curbing shrinkage within retailing’s next generation. Average shrinkage (inventory loss and wastage) stands at 1.43% in Ireland and 1.37% in the UK. Worryingly, the increase in average shrinkage 2010-11 was 8.3% in Ireland. Professor Bamfield analysed the key issues of retail shrinkage, discussed the possible roles of suppliers in shrinkage control, and considered how active and professional shrinkage management can be used to combat shrinkage and keep it under control.

Retailers need a strategic view – study your pattern of losses and plan short and longer term. Indeed, they should plan to do many things right, not one thing brilliantly, based on good, consistent data and run by people who understand systems and procedures.

See www.ecrireland.ie for more.

www.retailnews.ie|June 2012|Retail News|27

SHOP 2012

One Stop SHOP for New Business SHOP 2012 takes place in the RDS Simmonscourt from September 25-27, promising a host of new features.

SHOP 2012, taking place from 25-27 September, 2012, has been specifically tailored to meet the needs of today’s retailers and people in the food, drink and hospitality sectors. The show is evolving and will now be housing a number of new features, as well as benefiting from additional industry partner support, playing host to an anticipated 150 exhibitors and welcoming thousands of visitors.

“Designed to bring together buyers and sellers from the food, drink, retail and hospitality sectors, we’ve created a new look for SHOP,” explains Matt Benyon, MD of easyFairs in Ireland & the UK. “Features have been refined to address today’s climate and new features have been added that will be of real benefit to visitors, such as the Small Businesses Retail Clinic.”

SHOP Retail Forum One of the highlights of the threeday event, according to Matt Benyon, will be the SHOP Retail Forum – a platform for visitors to listen to inspirational seminars from some of

Ireland’s most notable businesspeople, sector advice from industry bodies, discussions on new research and global insight from major players.

Already committed to delivering informed seminars at the SHOP Retail Forum are Bord Bia, who will be focusing on Consumer Lifestyle Trends; Jane McEvoy, UK Apprentice candidate and director of McEvoy Family Foods; Stephen Lynam, Retail Ireland Director; and current Image Businesswoman of the Year, Vicki O’Toole, Managing Director of packaging company, JJ O’Toole.

Over the coming weeks, new speaker names will be announced so register your attendance at SHOP to receive on-going news updates ahead of the show.

The Big Cheese Making a welcome return to SHOP are the Irish Cheese Awards, synonymous for recognising some of Ireland’s most celebrated cheeses. Now in their third year, the Irish Cheese Awards, organised by Sheridans Cheesemongers, have increased in both entry levels and prestige. The competition is tougher than ever, thanks to the outstanding quality of cheese production in Ireland and reflecting this, category numbers have increased from 14 to 16. Co. Galway producer, Marion Roeleveld of Killeen Farmhouse, scooped the Supreme Cheese accolade in 2011 with her Killeen Goat Mature Cheese and this year, Sheridans and SHOP are hoping to uncover the next ‘big cheeses’ in 2012!

Exporting Opportunities

The Associated Craft Butchers’ National Sausage and Puddings Final is set to prove a popular draw at SHOP 2012.

A new supporter to SHOP, the Irish Exporters Association has pledged its commitment to the 2012 exhibition.

Recognising the importance of exports to Irish food production, the Irish Exporters Association will be inviting its members to the show, and providing visitors with beneficial advice and practical steps on how to market their

Florrie Purcell, owner, The Scullery, winner of the Product of the Show Award at SHOP 2011.

products to international markets.

“New products are the key route for Irish food and drink producers to expand their sales in the more established markets in Europe,” states John Whelan, Chief Executive, Irish Exporters Association. “SHOP 2012 is an ideal event to view new products and discuss potential market opportunities. The Irish Exporters Association will, therefore, be using SHOP 2012 to launch its Food Chains for Competitive Advantage (FCCA) programme to assist a wide range of Irish producers to create new products and accelerate their introduction to new markets.”

Other Highlights Also featuring at SHOP will be the Associated Craft Butchers’ National Sausage and Puddings Final, The Retail Doctor with retail guru, James Burke, the Product of the Show Awards and the Small Businesses Retail Clinic.

Exhibitors confirmed for the show so far include the New Olive Company, Milano Coffee Systems, County Enterprise Boards from North Tipperary, West Cork, Cork City and Clare, Timepoint, KND Foods, Procter & Gamble, CBE Ltd. and Maria O’Neill Designs.

TO secure your space at SHOP 2012, contact Show Manager, Caroline McGuinness on (01) 9036060 or email caroline.mcguinness@easyFairs.com.

Further show details are available on www.easyFairs.com/SHOP

28|Retail News|June 2012|www.retailnews.ie

Guaranteed Irish

Buying and stocking Irish goods on your shelves makes a real difference to Irish jobs.

Tom Rea and Elizabeth Hunt of Guaranteed Irish.

Supporting Irish Brands and Irish Jobs GUARANTEED Irish was set up in 1975, with one premise: to support jobs in Ireland. In 2012, that message remains as strong as ever. Indeed, one of the biggest things that Guaranteed Irish does is to make Irish consumers aware of the array of great Irish products and services available, according to Elizabeth Hunt, Marketing Manager.

“The Guaranteed Irish symbol makes shopping for Irish products and services much easier,” stresses Elizabeth. “We can all contribute

to local enterprises by making a deliberate choice to buy Irish goods and services over an international brand, provided they compete on price and quality.”

Given today’s economic climate, the significance of buying Irish has never been more apparent. The reality is that by shopping locally, consumers can help kick-start the economy and go a long way towards getting Ireland back on the path to recovery.

“When consumers buy Irish, the economy is directly impacted in a

number of positive ways,” continues Elizabeth. “The most obvious effect is on employment. By helping Irish businesses to generate profits, we are in turn helping not only to secure jobs but to create new ones.”

Job Creation While actively seeking to buy more Irish products may seem like a small step, the knock-on effect can be significant. Guaranteed Irish maintain that if consumers increase spend on Guaranteed Irish goods by

BRILLIANT BRENNANS JOSEPH Brennan founded the eponymous Joseph Brennan Bakeries in the 1960s, originally operating out of a small bakery in Dublin’s Fumbally Lane. The family-run business quickly built up a reputation for freshness and quality, by delivering consistently fresh bread to every part of the country on a daily basis and its three pillars – the product, the brand and strong distribution – remain core to its continued success today. With a state-of-the-art bakery in Walkinstown, Dublin, Brennans continue to perform well in this challenging and competitive market by investing in high quality products and conducting regular research to gain a better understanding of the changes in Irish Member of Guaranteed Irish. consumers’ behaviour and attitudes, while its tagline, ‘Today’s Bread Today’ is instantly familiar to generations of consumers. See www.brennansbread.ie for more information.

THINK IRISH

BUY IRISH GOODS & SERVICES

30|Retail News|June 2012|www.retailnews.ie

Guaranteed Irish COW & GATE CELEBRATES 125 TH BIRTHDAY COW & Gate has been made in Ireland since 1887, and continues to proudly produce the best quality Follow-On and Growing Up milk products in Wexford and Cork, using Ireland’s rich dairy resources.

Cow & Gate is the only brand in Ireland to offer a full range of nutritionally tailored milks and food products of all types to help feed babies from birth to three years of age. All of their products are developed by nutritionists and tailored for the key stages of Member of Guaranteed Irish. baby’s development.

This year, Cow & Gate are celebrating 125 years of manufacturing in Ireland by opening a new €50m facility in Macroom, County Cork. Most importantly in today’s climate, this investment has resulted in an estimated 200 construction jobs, and 40 permanent positions in engineering, food science and supply chain management at the facility.

€4 a week, it could create over 6,000 jobs!

A typical Irish household spends on average €16 a week on Guaranteed Irish products. According to Amárach Research, if consumers were to increase their spend by €4 to €20 a week, 6,000 Irish jobs could potentially be created.

“These figures cannot be ignored and show how important it is that people support Guaranteed Irish members in this economic climate,” Elizabeth maintains. However, safeguarding Irish jobs is not the only reason to buy Irish.

“When Irish businesses are prosperous, they are in a much better

position to give back to communities through the support of local charities and local sports clubs etc,” Elizabeth explains. “Further, successfully employed people in Ireland and successful Irish businesses also contribute to tax revenues towards government programmes.”

She also notes how buying Irish has a positive effect on consumers’ carbon footprint, as products made closer to home require less transportation.

Irish Consumers Love Irish Brands What is perhaps of more importance to retailers, however, is the fact that Irish

consumers actively want to purchase Irish brands. “There is a growing appetite amongst Irish consumers to support Irish businesses,” Elizabeth notes. “There has definitely been a movement towards buying more locally made Irish products.”

She cites the recent Amárach Research on attitudes to Guaranteed Irish, which reveals that 83%% of Irish consumers believe that it is more important today to buy Irish goods and services than it was a mere five years ago. Survey respondents maintain that buying Irish makes people feel that they are doing their bit for their country at a time when they often feel powerless to make a difference.

The research also points out that 35% of 16-24 year olds support buying Irish because it helps the economy, while 40% of the over-55 category buy Irish because it helps them to feel as though they are supporting jobs.

Regardless of the reason for buying Irish, an overwhelming proportion of those surveyed (86%) felt that Irish companies should highlight the fact that their products or services are Irish, with one in five stating that the Guaranteed Irish symbol featured on a product provides peace of mind that the company’s products or services are indeed Irish.

And it works. “We are committed to buying, printing and making everything that we do in Ireland,” notes Niamh NicLiam, Associated Newspapers.

“The Guaranteed Irish symbol on our newspapers is now a key part of our identity.”

However, according to Elizabeth the Guaranteed Irish logo is not just a marker of the product or service’s

FLAHAVAN’S – IRELAND’S FAVOURITE PORRIDGE OATS JOSEPH Brennan founded the eponymous Joseph Brennan Bakeries in the 1960s, originally operating out of a small bakery in Dublin’s Fumbally Lane. The family-run business quickly built up a reputation for freshness and quality, by delivering consistently fresh bread to every part of the country on a daily basis and its three pillars – the product, the brand and strong distribution – remain core to its continued success today. With a state-of-the-art bakery in Walkinstown, Dublin, Brennans continue to perform well in this challenging and competitive market by investing in high quality products and conducting regular research to gain a better understanding of the changes in Irish consumers’ behaviour and attitudes, while its tagline, ‘Today’s Bread Today’ is instantly familiar to generations of consumers. See www.brennansbread.ie for more information.

Member of Guaranteed Irish.

www.retailnews.ie|June 2012|Retail News|31

Guaranteed Irish SUDOCREM SUCCESS SUDOCREM is one of Ireland’s best loved brands. First developed in the early 1930s by Dublin pharmacist Thomas Smith as an antiseptic healing cream, Sudocrem has been the first choice for generations of mums and healthcare professionals in its native Ireland, treating nappy rash and used as a skin soother.

Sudocrem is available from independent pharmacies, major pharmacy chains, supermarkets and selected children’s department stores nationwide. Sudocrem is the market leader in over 30 countries all over the world which is served from its IMB-approved plant in Baldoyle, Dublin, where over 100 people are employed.

The brand continues to evolve, with a new sunscreen mousse launched in April, specifically formulated to protect babies and young children’s delicate skin. See www.sudocrem.com for more information.

Member of Guaranteed Irish.

Irishness but relays the message to the consumer that this is a quality product or service. “The goal of Guaranteed Irish is and has always been to maximise employment and help companies demonstrate what is great about their products in today’s competitive market place,” Elizabeth sums up.

Benefits to Members Guaranteed Irish is run by likeminded business people as a non-profit

organisation to educate, network, innovate and support both members and consumers.

For members, Guaranteed Irish provides an ongoing series of seminars, talks and trade events.

By creating consumer interest, awareness and passion for the Guaranteed Irish ethos and symbol, they can help members to increase their market share. They also actively promote Irish member

companies dedicated to the principles of Guaranteed Irish, as can be seen in their recent TV advert.

By joining Guaranteed Irish, you can: • Increase sales by reassuring consumers that your product or service is Irish; • Benefit from awareness campaigns which drive consumers to seek out Guaranteed Irish products and services; • Create stronger impact and differentiation at exhibitions or in-store promotions through free point of sale material; • Keep up-to-date with all the recent events through the Guaranteed Irish quarterly newsletter; • Benefit from the members network.

To qualify, you must be an Irish registered company and comply with Guaranteed Irish’s terms and conditions.

For more information, contact: Guaranteed Irish Ltd., 1 Fitzwilliam Place, Dublin 2, Ireland Email: info@guaranteedirish.ie Tel: 01 6612607 Fax: 01 6612633

32|Retail News|June 2012|www.retailnews.ie

Guaranteed Irish

SMA Nutrition SMA Nutrition, a trade name of Pfizer’s nutritional business, is one of the world’s leading producers of infant and child nutritional products.

At 60,000 square metres, their facility at Askeaton, Co. Limerick, which first opened in 1974, is now one of the largest purpose-built infant nutrition production sites in the world. The full manufacturing process is carried out under one roof, starting with ingredient intake and ending with the finished product ready for shipment worldwide. Indeed, 50m kilograms of SMA Nutrition products are produced every year in Askeaton for Ireland, the UK, the Middle East, Africa, Asia, Australia and Latin America. In total SMA Nutrition products are sold in 60 countries worldwide. The cornerstone of the SMA Nutrition philosophy is quality, which is why they have extensive testing at every stage of production to ensure that families worldwide only get the best in infant and child nutritional products.

nutritional needs at every stage of growth from birth to childhood.

They have also created a specifically tailored range of formulae for babies with special requirements.

The SMA core range includes SMA Follow-on Milk, which complements a weaning diet from 6 months, and SMA Toddler Milk, a fortified milk drink from one year.

For information on the full range of SMA products range, see SMAknowhow.ie, while parents can call the SMA Careline team on Freephone 1800 931 832 for information and advice about any SMA Nutrition products. The new free SMA know-how iPhone and Android App ensures that the most practical parenting tools and expert knowledge that expectant and new parents could possibly need are at their fingertips. To download the SMA know-how iPhone/ android app, simply scan the QR code at the bottom of this page or go to SMAknowhow.ie for more information.

number of the SMA range products, including SMA Toddler Milk, are now available in new Easy Feed bottles, providing babies with important nutrients for growth while mums are on the go. Easy Feed bottles will be available to purchase in 250ml and 1 litre from all major retailers across Ireland by the end of June.

The Future

New Product Innovations SMA Nutrition know breast milk is best, but breastfeeding is not always possible for mothers, which is why they have a fully dedicated healthcare professional team focusing on new product and formulaic development to ensure the continued highest quality and innovative nutritional products are available for all stages of a child’s development.

SMA Nutrition has over 90 years of breast milk research which has led to the development of an individually tailored product range to meet varying

The future is bright for SMA Nutrition as they have just created the most notable breakthrough innovation in the infant feeding convenience industry known as: The Easy Feed System. A

IMPORTANT NOTICE: Breastfeeding is best for babies. You should always seek the advice of a doctor, midwife, health visitor, public health nurse, dietician or pharmacist on the need for and proper method of use of infant milks and on all matters of infant feeding. SMA Follow-on Milk is for babies over six months, as part of a varied weaning diet. Not to replace breastfeeding. SMA Toddler Milk is for babies over one year, as part of a healthy balanced diet.

Emma breastfed her daughter because she knew it would give her the best start in life. When she finished, she was determined to find the best option for her baby. She chose SMA Follow-on Milk because it contains vitamin D to help bone and teeth development.

For Emma, the best milk after hers is SMA Follow-on Milk.

To find out if SMA Follow-on Milk is the best milk after yours, visit smanutrition.ie

90 years of breast milk research

IMPORTANT NOTICE: SMA Follow-on Milk is for babies over 6 months and is not intended to replace breastfeeding.

It should only be used as part of a varied weaning diet.

ZCO 1165

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In-Store Bakery

6KS\TZ 0UNYLKPLU[Z! The In-Store Bakery Solution Odlums Ingredients are the leading suppliers of ambient bakery ingredients to the Irish baking industry, and have an in-store bakery solution for you, regardless of the size of your store.

WHILE the baking industry is being squeezed from all sides by unprecendented ingredient costs and weak consumer spending, the in-store bakery segment is well positioned to cope with the pressure. It appears customers are a little more thoughtful about what they are purchasing, but they still want quality fresh bread.

In-store bakeries are finding that ‘quality & healthy’ items are selling well in this economy. The consumer will pay more for a better product.

Odlums Ingredients is the leading supplier of ambient bakery ingredients to the Irish baking industry. With over 150 years’ experience, Odlums Ingredients have successfully worked with supermarkets and convenience stores to achieve the best in-store bakery offering.

Gavin King, Odlums Ingredients Commercial Manager.

Great Revenue Stream With the bakery business undergoing significant changes in the last 10 years, bakeries are increasingly looking for new technologies and innovative products to remain competitive and meet consumer demand. Gavin King, Odlums Ingredients Commercial Manager, believes that in-store bakery solutions are a great revenue stream for stores and can add significant value for them.

“They are a way of ‘pulling’ customers to the store, driving loyalty and increasing sales in supplementary categories,” Gavin stresses. “An in-store bakery offering has the advantage of fresh, daily baked goods and also has the great smell of baking to attract customers.”

Varying Investment Levels

It is labour saving, and reduces the number of stakeholders with suppliers and administration. Product delivery in terms of quality and performance is achieved by the mixes, with extensive testing and blending conducted by Odlums.

Larger retailers, more confident with their ability, have the desire for a larger, dedicated in-store bakery, and Odlums Ingredients are on hand to supply ingredients and provide a support role. They can provide staff training, recommend and advise on equipment selection and provide the best quality products and support functions to get your bakery off the ground.

Gavin King attributes the experience and expertise of Odlums Ingredients, together with their close working relationship with stores, as key measure in their success: “While the in-store bakery trend is mainstream, every retailer is different. We work with each on what they can and should produce. Some want bespoke products, while others are happy to use the existing range of bread and confectionery mixes.

In addition, Odlums Ingredients also supply a full range of baking ingredients.”

There are varying levels of investment.

Far a large scale operation, the level of investment and return can be huge, but smaller retailers can easily offer good solutions by having basic equipment and a good choice of key lines.

If smaller stores have some existing bakery equipment, they can soft launch into the market with premixes. Pre-mixes are convenient, easy to follow solutions with the ability to deliver high quality, consistant baked See www.odlumsingredients.ie for more information. products to consumers.

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Bread

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Bake

A staple of the grocery shop, bread is a massive driver of footfall in-store as well as a valuable category in its own right, with healthy options driving category growth.

THE increasing health consciousness of the Irish consumer has been good news for the bread and baked goods sector. As awareness of the implications of their food choices increases, the result has been greater demand for foods produced using healthy and natural ingredients, according to the latest report into the sector from Euromonitor.

Manufacturers have used this trend to their benefit by highlighting their efforts to reduce perceived less healthy ingredients, such as salt, while at the same time emphasising potential health benefits, such as the reduction of cholesterol levels.

According to Euromonitor, constant value sales of baked goods in Ireland are expected to see an annual growth rate of 1% to 2016. The nature of the market ensures that the negative trend of rising commodity prices will have a limited impact. Although the market is mature, there is still plenty of scope for development of new products, especially in relation to health and wellness, which is set to remain a key forecast trend across a range of categories, including baked goods, claim Euromonitor.

Brennans are currently running a major advertising campaign promoting the appetite appeal of the iconic Family Pan and to address changing consumer attitudes towards white bread.

every part of the country on a daily basis.

Joseph Brennan Bakeries have since become the market leader and one of the largest food manufacturers in the country. With a state-of-the-

art bakery in Walkinstown, Dublin, Brennans continue to perform well in this challenging and competitive market by investing in high quality products and conducting regular research to gain a better

Brennans Joseph Brennan founded the eponymous Joseph Brennan Bakeries in the 1960s. The business, which originally operated out of a small bakery in Dublin’s Fumbally Lane, was built on three key pillars: the product, the brand and strong distribution. The family-run business quickly built up a reputation for freshness and quality by delivering consistently fresh bread to

‘Brown and White in One Bite’ is a great tasting white bread with all the goodness of brown.

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Bread understanding of the changes in Irish consumers’ behaviour and attitudes.

Brennans are currently running a major advertising campaign promoting the appetite appeal of the iconic Family Pan and to address changing consumer attitudes towards white bread.

Launched in February, the campaign gives consumers more reasons than ever to choose Brennans Family Pan by

Baby’ and the second called ‘Grow Your Own’. The second commercial tells the story of a family making sandwiches for lunch. Like most parents, the mother in this ad wants her children to enjoy good, honest food like she grew up on. So of course she’s happy that her kids want to eat home-grown vegetables, along with fresh Brennans Family Pan. With constant consumer research being undertaken

by Brennans, the company are regularly developing new

acts as a source of protein and fibre while giving great flavour, texture and variety.

Brennans are focused on constantly improving on the foundations upon which the company was built – product, brand and distribution. It’s how the company has survived and thrived since the 1960s, and how they plan to continue to do so into the future. As ever, Brennans are further developing their range and intend launching a number of exciting new products over the next six months.

The hugely popular Toastie brand from Johnston Mooney & O’Brien.

Johnston Mooney & O’Brien products to satisfy the changing needs of the nation. ‘Brown and White in One Bite’ is one such development. This great tasting white bread has all the goodness of brown with added wholemeal and is high in calcium. It is also a source of fibre and has no bits.

As well as that, Brennans have re-launched the Natural Recipes Crunchy Range with four delicious recipes that combine traditional tastes and flavours with new and exciting ingredients. The range consists of: Wholemeal with Pumpkin and Poppy Seeds; Wholemeal with 7 Grain; Rye with Sunflower Seeds; and Wholemeal with Oatmeal and Linseed. Between them, the range

As Ireland’s oldest bakery, Johnston Mooney & O’Brien has a really rich heritage with Irish consumers.

Baking since 1835, Johnston Mooney & O’Brien bread, buns and, in past decades, cakes, have been enjoyed in Ireland for more than a century.

To honour this shared history, Johnston Mooney & O’Brien recently launched a new brand positioning and in doing so, re-launched the iconic ‘J’ brand symbol, using contemporary pack designs and engaging advertising.

With the strap-line ‘History in the Baking’, Johnston Mooney & O’Brien is communicating the unique experience and craftsmanship that goes into every sliced pan.

Quality of ingredients is also a key message Johnston Mooney & O’Brien

Brennans have re-launched the Natural Recipes Crunchy Range with four delicious recipes that combine traditional tastes and flavours with new and exciting ingredients.

highlighting facts that some consumers are not aware of, like ‘no added sugar’ and ‘naturally low-fat’.

Two television commercials have been produced, the first called ‘New

Goodness of Both from Johnston Mooney & O’Brien: a soft smooth white with all the goodness of wholemeal.

BrennansBread.ie BrennansBread.ie

GIVING CONSUMERS MORE GOOD REASONS TO ENJOY OUR WHITE BREAD. Brennans is currently running a major advertising campaign to celebrate the nation’s favourite bread. By highlighting facts like no added sugar and naturally low-fat, we’re giving consumers more good reasons than ever to choose Brennans Family Pan. So by stocking up with Ireland’s leading white sliced pan, you’ll get an even bigger slice of the market.

Brennans Family Pan is the number 1 selling white sliced pan in Ireland.

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Bread

Johnston Mooney & O’Brien’s Bundys brand is being supported this summer with targeted radio advertising.

are keen to stress with consumers as they refuse to compromise on the quality of their ingredients. New pack designs explain that Ireland’s oldest bakery’s more than a century of experience is used to select high grade flour from the finest wheat-grown harvests.

With a greater media spend than ever before, Johnston Mooney & O’Brien are investing throughout this year in TV, radio, outdoor, press and online to engage with Irish consumers.

Johnston Mooney & O’Brien’s Bundys brand is also being supported this summer with targeted radio advertising, emphasising the quality of ingredients that go in to baking Ireland’s original bun brand.

While their history is rich, the future looks even brighter for this much loved Irish institution. Along with working with customers to deliver a category value driving promotion and innovation plan, Johnston Mooney & O’Brien will continue to invest in the brand, engage with consumers and bake great tasting bread and buns.

Irish Pride Irish Pride is one of the largest bakery companies in Ireland, with bakeries located in counties Wexford and Mayo. One of the key strengths of the

company is its distribution network and Irish Pride partners with leading niche bakeries such as McCambridge and Panelto to deliver a complete range of breads to stores nationwide every day.

Sandwich 800g. This new product is the ideal solution for consumers who want the convenience of a square slice in a healthy wholemeal variety and it has delivered strong growth in the category since its introduction to their range.

Irish Pride Bakeries operates a second brand, the LifeFibre Co. During 2011, the company repositioned the LifeFibre Co. brand to appeal to the mainstream consumer. The range includes LifeFibre Co. 9 Grain Loaf 500g and LifeFibre Co. I Love My Heart 500g. Both products are truly innovative in the bread market, with 9 Grain Loaf having the highest seed content and I Love My Heart being the only bread that will help to reduce blood cholesterol, according to the company. The LifeFibre Co. brand has carved a niche in the market and

Irish Pride Wholemeal Sandwich 800g has delivered strong growth in the category since its introduction to their range.

Irish Pride Bakeries has one of the widest ranges of bread in the Irish bread market, ensuring that the brand has something for every consumer. Key brands include Sandwich, Big Toast and Healthy Grain. During 2011, Irish Pride extended their biggest selling sub brand, Irish Pride Sandwich 800g, to introduce Irish Pride Wholemeal

LifeFibre Co. Fruit ‘n’ Fibre 500g is packed full of juicy sultanas and a special blend of seeds and grains, including sunflower seeds, linseeds, pinhead oatmeal and kibbled soya.

appeals to consumers who are looking for a healthy option in the bread aisle.

In order to capitalise on the success of the LifeFibre Co. brand, Irish Pride will further extend the range this summer.

Introducing LifeFibre Co. Fruit ‘n’ Fibre 500g: this bread is packed full of juicy sultanas and a special blend of seeds and grains, including sunflower seeds, linseeds, pinhead oatmeal and kibbled soya. This breakfast bread is packed full of fibre and energy and is the perfect way for consumers to kickstart the day.

“As a bakery, Irish Pride have always been renowned for fresh, high quality, healthy breads,” notes a company spokesperson, “and we will continue to focus on maintaining these standards to ensure that we continue to offer the Irish consumer the best range of breads possible because it’s a matter of pride.”

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Bread

Gluten for Punishment COELIAC disease and wheat intolerance are on the rise worldwide, with over 1% of Irish people diagnosed as intolerant to gluten. However, the market also includes a growing number of people who wish to avoid wheat and gluten as part of a healthy diet. Up until recently, the choice in breads for this group of people was very limited and rated low in terms of taste, freshness and nutritional values, but the last year has seen an explosion in high quality wheat and gluten free breads.

KELKIN Kelkin have recently launched gluten free Multiseed Sourdough Bread, which complements the very popular and successful original Sourdough Bread. Kelkin Sourdough Bread does not need to be refreshed once opened and it tastes great straight from the pack. The large, soft slices are ideal for making sandwiches!

Both breads are high in fibre and are separated into two individual packs for consumers’ convenience. For more information, contact Kelkin on (01) 4600400

Kelkin’s gluten free Multiseed Sourdough Bread and original Sourdough Bread: high in fibre and are separated into two individual packs for consumers’ convenience.

BFREE FOODS LTD A new Irish company, BFree Foods Ltd has developed BFree, a range of wheat free and gluten free bakery products that are outstanding in terms of taste, freshness and nutritional values. An innovation by Ronan McNamee, founder of Cuisine de France, the BFree Irish brand came as a result of extensive research into the market for wheat free and gluten free products. At the cusp of bread manufacturing for over 40 years, Ronan spent almost three years in creating a recipe that tasted just like wheat based bakery products.

The BFree range includes a Soft White Loaf, with 35g slice containing less than 1g of fat and only 71 calories; a Brown Seeded Loaf, made with toasted sunflower seeds and golden linseeds; 4 Brown Seeded Rolls and a White Demi Baguette, which comes in a bake at home bake-able bag, so consumers can refresh in their oven and indulge The Soft White Loaf from BFree: each 35g slice contains less than 1g of fat and only 71 calories.

in a fresh hot and crispy demi baguette. See www. bfreefoods.com for more information.

ALDI GLUTEN FREE BREADS Aldi recently partnered with specialty foods company Heron Quality Foods to introduce a new gluten free bread range.

Certified by the Coeliac Society of Ireland, the new range has the same look, taste and texture of regular bread, meaning those who are coeliac or gluten intolerant no longer have to compromise on quality or value for money.

The gluten free range is one of three new breads introduced

by Aldi to cater for customers’ dietary needs and preferences.

Aldi has also introduced fresh Irish low GI and spelt breads which are nutritious and high in fibre, suitable for customers who wish to improve their daily diet. Aldi’s Lynch’s Low GI Bread (400g,

€1.09 each) is a multi-seed sliced loaf made with sunflower seeds, linseed and pumpkin seeds, topped with sesame and poppy seeds, while Aldi’s Lynch’s Honey and Spelt Loaf (400g, €1.39 each) is a sliced spelt bread made using honey, sunflower, lupin and sesame seeds.

RTÉ sports presenter Bill O’Herlihy and mini baker Daire Lilly Costello, aged 4, from the Coeliac Society of Ireland, give gluten the red card to help launch Aldi’s range of fresh Irish gluten-free bread.

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Pet Care

The

Big Paws

The €121m Pet Care sector is one area that appears recession-proof, as Irish consumers continue to pamper their four-legged friends.

Pedigree Dentastix ONE of the few areas in are available in trial which Irish consumers packs of three, weekly appear unwilling to cut packs of seven or their spending significantly monthly packs of 28, is on their pets, according and with the ‘Vets to the latest report into Recommend’ flash on the sector by Euromonitor pack, retailers should International. While there ensure they stock up has been a growth in and site this great economy brands in recent product alongside their times, premium pet foods existing dog care range. have continued to defy The Dog Care & expectations.

Treats category is in New product development growth by over 6.8% is key to success in Pet Care (Source: ACNielsen and the leading players Scantrack MAT engage in significant R&D April 2012) and still so they can freshen up represents a massive the market with regular opportunity to recruit new product launches, new buyers into the particularly those with health category, particularly benefits for pets. According to Pedigree Dentastix if retailers ensure they Euromonitor, new launches are a great source have a range of Pedigree tend to focus on offering a of incremental sales Care & Treats available wider variety to consumers and growth. on their Pet Care fixture. greater specialisation, in line Dog Care and Treats, with the anthropomorphisation including functional treats such trend, with this also true in private as Pedigree Dentastix, are a great label, which continues to make gains. source of incremental sales growth: Market segments like dry food, treats this is one of the fastest growing and single serve pouches have proved sub-categories within Pet Care particularly popular. and innovative campaigns such As the economy trundles towards as Doggie Dentures represent recovery, Euromonitor expect that pet a significant opportunity for food and pet products will fare better retailers to capitalise on this high than other consumer product sectors, margin segment. A full range with some value gains driven largely of tailored POS featuring the by the premium segment and new dogs from the Doggie Dentures human-style ingredients in pet food, campaign is available to although the economy segment will retailers to drive awareness and also put in a good performance in a engagement in-store. market which is estimated to be worth over €121m (ACNielsen).

growth in recent years, supported

by Whiskas’ innovations such as the Whiskas Oh So and Whiskas Simply sub-ranges. New in 2012 is the Whiskas Tasty Textures BITE ‘n Chew sub-range. Cats love to bite and chew their food – this is how they naturally enjoy it, so Whiskas have introduced this range, which is packed full of roughly chopped meaty pieces in a soft meaty paté background, for maximum bite & chew satisfaction.

Variety is critically important to cats and their owners, with Cat Single Serve pouch being a strong repertoire category. With three multipack varieties available (Mixed Meat & Fish recipes, Meat recipes & Fish recipes) and one single Chicken recipe pouch, Tasty Textures BITE ‘n Chew provides cats with the variety they crave both from a recipe and texture perspective.

The Cat Care and Treats segment is experiencing growth of circa 19% MAT, with Whiskas growing ahead of the segment at 22.2% MAT. The Whiskas Temptations range contains a broad mix of functional products such as Anti-Hairball and Dentabits, as well as treat products such as Temptations

Whiskas Pedigree Pedigree, Ireland’s number one selling dog care brand from Mars Ireland, is significantly investing behind a TV, press and online campaign to tackle the serious issue of gum disease in dogs. “Doggie Dentures” highlights the importance of oral health care in dogs.

Also from Mars Ireland comes Whiskas, which claims leadership in the cat food category, which is currently worth €36.4m (All figures sourced from AC Nielsen Total Scantrack, MAT, April 22, 2012).

The Cat Single Serve pouch segment has experienced strong

New Whiskas Tasty Textures BITE ‘n Chew provides cats with the variety they crave both from a recipe and texture perspective.

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44|Retail News|June 2012|www.retailnews.ie

Pet Care Chicken, Beef and Salmon. Cat Treats are an incremental purchase for all cat owners as they are served as well as main meal products like pouch and dry food.

Whiskas will have strong brand support throughout 2012, with a dedicated TV advertising campaign, in-store advertising, digital advertising and a sampling programme.

Brandy Local brands Brandy and Brandy Complete, from Mackle Petfoods, were successfully re-launched back in January. Based in Co. Armagh,

The Brandy range now includes a Variety 6 Pack Chunks in Jelly and a Variety 6 Pack Chunks in Gravy offering, as well as Brandy Variety 6 Pack Traditional Loaf.

Brandy is proud to use only 100% Irish meat in its canned product range, which is unique to the brand. All their meats are sourced from across the island of Ireland and Brandy is also fully traceable from farm to can. As part of Brandy’s re-launch, some new canned lines have been introduced to the range. A new departure for Brandy is the introduction of a Variety 6 Pack Chunks in Jelly and a Variety 6 Pack Chunks in Gravy offering, to complement the existing Brandy Variety 6 Pack Traditional Loaf.

Targeting the convenience market, Brandy has launched two new Variety 3-Packs, price-marked at €2.

70% of canned pet food is sold as chunks in jelly or chunks in gravy so Mackle believe there is an excellent opportunity to grow Brandy sales further during 2012.

Targeting the convenience market, Brandy has also launched two new Variety 3-Packs, pricemarked at €2. These packs offer the consumer excellent value for money and the retailer strong margin and include Brandy Variety Traditional Loaf 3-Pack and Brandy Variety Chunks in Jelly 3-Pack, both price-marked at €2.

Brandy is also available as an Original, Beef and Chicken Traditional Loaf 3-Pack offering and as a Variety Traditional Loaf 12 Pack.

Brandy Complete is 100% Natural and is available in Original or Chicken and Rice varieties, in 2.5kg, 9kg and 15kg bag sizes.

Brandy has a strong local heritage dating back to 1972. Mackle Petfoods know Irish consumers are concerned about the provenance and quality of the product they feed their dogs and they will embrace the fact that Brandy uses only 100% Irish meat and has full traceability. Dog owners view their dog as a key member of the family, so they want to feed them the best.

Consumers are also looking for value and Brandy offers customers high quality products at a value price. Brandy will continue to be supported by strong promotional activity during 2012.

category at +12%, and the Bonio range of dog biscuits continues to grow in an otherwise declining biscuit category.

Go-Cat remains the nation’s favourite Complete Dry Cat food brand, according to Nestlé, with 45.5% value share and volume growth of +5%. The Felix and Gourmet brands continue to bring exciting new innovative products to the Single Serve Cat food market with new launches on Felix As Good as it Looks Doubly Delicious, and an ever expanding range of Gourmet products for consumers to treat that special cat in their life.

Now, however, the Cat Treats Market is set to get three times more exciting with the launch of new Felix Goody Bag treats, a tasty mix of three deliciously different treats in one bag.

“The cat treats market is the fastest growing pet category, having grown 21% in the past year (Source: ACNielsen, Total Market YTD to w/e March 25, 2012),” said Jessica Ryan of Nestlé Purina. “It can now enjoy the full support of the Felix Nestlé Purina New Felix Goody Bag The Purina Pet Care portfolio from is a tasty mix of three brand, which will bring so many new Nestlé remains well positioned deliciously different users to this category, to help retailers to treats in one bag in generating significant maximise Original Mix, Seaside incremental growth.” opportunities Mix and Mixed Grill varieties.

Three varieties in Pet Care, were launched with Bakers in May in resealable 60g pouches: Complete growing Original Mix (flavoured with chicken, ahead of the liver and turkey), Seaside Mix category at +5% (flavoured with salmon, pollock and year on year and trout), and Mixed Grill (flavoured now claiming with beef, chicken and salmon). To 29.1% market share. Treating is help encourage impulse sales, Seaside now an everyday part of caring for Mix will be also available in handy dogs, with Bakers Treats Chews and pre-filled clip-strips.

Biscuits range growing faster than the

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Oral Care

Mouth Almighty Ireland’s €37m oral care grocery market is fuelled by new product development, while the high cost of dentistry services also helps.

THE importance of personal oral care has risen amongst the Irish population in recent years, according to the latest report into the sector by Euromonitor International, who Using advanced NovaMin technology, Sensodyne Repair cite the high cost of & Protect can continuously help to repair, strengthen dentistry services in and protect teeth from sensitivity.

Ireland, alongside better education and availability of information, as the GlaxoSmithKline Consumer primary drivers of this growth.

Healthcare While discretionary spending has The Oral Care Grocery market in been reduced, interest in personal Ireland is worth €37m (Source: appearance has not waned, resulting ACNielsen Multiple Scantrack, period in the growth of interest in more ending 25/03/2012). GlaxoSmithKline affordable dental treatments, Consumer Healthcare (GSK) is the especially those that can be carried out number two player in the Grocery Oral at home, thereby avoiding additional Care Market, worth €9.2m and with a consultation fees. Value sales in oral market share value of 24.7% (Source: care are under pressure, as consumer ACNielsen Multiple Scantrack, period choices are increasingly driven by ending 25/03/2012). value for money rather than brand GSK ensures it caters for the loyalty, according to Euromonitor, wide variety of oral care needs and while volume sales remain high. requirements of its consumers. These Innovation and new product include family/every day oral care development do tend to shake up the (Aquafresh), denture care (Poligrip) category: the key product launches and specialist oral care products, tend to be supported by strong such as Sensodyne for sensitivity advertising campaigns. and Corsodyl for gingivitis and Euromonitor predict that irish gum disease. GSK’s innovation has consumers will continue to be prepared continued to drive the category forward to pay a little extra for their daily oral via the introduction of products such care products. Although brand loyalty as Sensodyne Pronamel (specifically is a strong consideration, competitive designed to protect teeth against promotional offers enable consumers acid erosion) and Sensodyne Repair the option of trialling products, & Protect, powered by Novamin especially in relation to toothpastes. technology.

As a result, products that promise to Sensodyne is currently the number improve whiteness or provide a range two Oral Care brand on the market of benefits, including total mouth care, and is the most popular GSK brand will continue to remain of interest to driving value into the market (Source: Irish consumers.

ACNielsen Multiple Scantrack, period

ending 20/05/2012). Sensodyne Repair & Protect was introduced to the market in 2011 when an opportunity was identified to develop a unique product for the sensitivity category that actually repairs sensitive teeth. Using advanced NovaMin technology, Sensodyne developed an everyday fluoride toothpaste that offers users a product which can continuously help to repair, strengthen and protect their teeth from sensitivity - Repair & Protect provides clinically proven relief with twice daily brushing.

In addition to this, in 2011 GSK launched the Dental Health Alliance.

This initiative sees the coming together of their five oral care brands – Sensodyne, Aquafresh, Corsodyl, Poligrip and Biotene – to educate consumers on oral health issues and to provide a complete solution for consumers. GSK also continue to focus on detailing their brands to the dental

GSK have redeveloped their Aquafresh Kids range to offer a greater choice of products for younger family members.

33% of people suffer from sensitive teeth...

...not me!

Dental Health Alliance

Improving Ireland’s dental health Using NovaMinŽ technology, Sensodyne Repair & Protect is proven to continuously repair, strengthen and protect your teeth from future episodes of sensitivity.

Find us on and learn how you can improve your dental health www.facebook.com/Dental-Health-Alliance

48|Retail News|June 2012|www.retailnews.ie

Oral Care professional to ensure they continue to secure their recommendation which, in turn, will drive the consumer in-store. The Dental Health Alliance has a dedicated Facebook page www.facebook.com/dentalhealthalliance where consumers can learn how they can improve their dental health. The Dental Health Alliance will focus primarily on portfolio communication, through digital and radio advertising.

All initiatives will be supported in-store, at the point of purchase via solutions to drive education and trial.

Research shows that 37% of children suffer from tooth decay by the age of five (Source: Dental Health Alliance information leaflet).

In response to this trend, GSK have redeveloped their Aquafresh Kids range to offer a greater choice of products for younger family members.

These products promote good oral care by encouraging regime from a young age whilst still maintaining a ‘fun factor’ in brushing, washing and rinsing. Aquafresh Kids paste currently holds the number one position in the kids sector with 45% share and is growing at 26% MAT (Source: ACNielsen Multiple Scantrack, period ending 20/05/2012).

Driving category innovation through NPD and consumer initiative, GSK will continue to support on-going growth in the category and capitalise upon the opportunity to increase sales for retailers.

The TriZone from Oral-B: the latest breakthrough innovation in power brushes.

Willoughby, as well as extensive PR, digital and in-store activity.

Oral-B’s 3D White starts working from the first use, removing up to 80% of surface stains and helping to prevent them from coming back. Its 3-dimensional technology cleans the front, back and visible gaps between teeth, meaning teeth are naturally whiter from every angle.

Available in two new variants, 3D White ‘Brilliance’ offers whiter teeth on the front, back and visible surfaces in-between, whilst 3D White ‘Enamel Protect’ also aims to re-mineralise enamel in addition to strengthening gums.

3D White whitens teeth in three ways. Its unique Dual Silica Cleaning and Polishing System whitens teeth by gently lifting stains, revealing Oral-B the natural whiteness of the teeth. The Oral-B, the number one toothbrush Pyrophosphate Chemical Stain and brand, unveils Procter & Gamble’s Tartar Prevention System enforces most significant and breakthrough new stain prevention. Pyrophosphate product launch of 2012/13 with the technology sticks to front, back introduction of 3D White in July 2012. and visible gaps of teeth to prevent 3D White toothpaste is available in tartar build-up on teeth. Finally, its two versions - ‘Brilliance’ and ‘Enamel fluoride technology helps strengthen Protect’ and aims to provide users with and protect teeth. Fluoride helps visibly whiter teeth in just two weeks. to re-mineralise teeth and repairs Procter & Gamble will be damaged areas supporting the launch of 3D White Oral Care Business Leader at with a multi-million euro marketing Procter & Gamble, Helen Johnson campaign which includes ATL says, “3D White has been specifically advertising across print and TV, developed to meet consumer demand using celebrity ambassador Holly for a premium beauty toothpaste that truly works. The launch of the new product aims to build on the success of ProExpert whilst continuing to grow Oral-B’s market share within the paste category.”

July also sees Oral-B unveiling the latest breakthrough innovation in power brushes, the TriZone.

Oral-B’s new 3D White toothpaste: Procter & Gamble’s most significant and breakthrough Specifically aimed at consumers who new product launch of 2012/13. are used to manual brushing, Oral-B

intends to convert 50% of the nation to power brushes to increase penetration and capitalise on its leading share of the category.

Following seven years of clinical trials, the new TriZone power brush uses a traditional toothbrush head with three bristle areas to mimic the familiar manual brushing sweeping action, whilst successfully providing superior dental cleaning - removing 100% more plaque than an ordinary toothbrush.

Oral-B’s TriZone works via a triple zone brush technology system with three separate bristle areas: power tip for hard to reach back teeth; stationary bristles thoroughly clean tooth surfaces; wide sweeping bristles for interdental cleaning.

“Oral-B continues to innovate across the power category and the TriZone power brush is our latest breakthrough innovation,” says Adam Boulding, Oral-B, Clinical Scientist.

The launch of Trizone will be supported by a multi-million euro through-the-line marketing campaign across TV, print, trade and consumer PR, as well as extensive in-store activity.

Procter & Gamble’s new Fixodent Dual Protection features a unique, thin ‘pen’ nozzle that provides a complete food seal barrier effect.

Fixodent This July, Procter & Gamble is launching the latest innovation in denture adhesive, Fixodent Dual Protection. Aimed at the growing category of denture wearers, P&G intends to increase its market value share by driving awareness and penetration via a multi-million euro through-the-line marketing campaign across TV, print, trade and consumer PR, as well as extensive in-store activity.

Procter & Gamble’s new Fixodent Dual Protection features a unique, thin ‘pen’ nozzle that provides a complete food seal barrier effect. Its special anti-bacterial active ingredient also helps to provide fresh breath for up to eight hours. The combination of these two powerful elements offers not only mouth protection, but freedom, convenience and discretion.

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Market News WEIGHT WATCHERS SOFT DRINKS FOLLOWING a successful launch in the UK market earlier this year, the new range of Weight Watchers Soft Drinks is now set for a major roll-out across the island of Ireland.

The Weight Watchers Soft Drinks range comprises of a variety of premium flavoured cordials (Sicilian Lemon & Elderflower, Italian Red Grape & Pomegranate and Chilean Plum & Raspberry), ready-to-drink fruit drinks (Italian Red Grape & Raspberry and Brazilian Orange, Mango & Watermelon) and Sicilian Lemonade, all with no added sugar and a ProPoints value of zero per 250ml serving.

Lyons’ Richer Tasting Tea LYONS Tea has crafted a new range of richer tasting tea especially blended for our tea-loving palates. Made using a unique pressing technology, the tea leaves are pressed at different stages during fermentation in order to capture and preserve the genuine and refined taste of fresh tea in each blend: Fresh Blend - the tea leaves are pressed within hours of picking to give a uniquely clean, smooth, golden and fresh-tasting tea; Gold Blend - the rich full flavour tea that tea drinkers have always loved, enriched with some pressed tea leaves; Evening Blend - a delicate tasting blend that combines lightly pressed leaves and decaffeinated tea. “We’re delighted to introduce our new range as Irish people have a passion for tea like no other nation, with a very refined palate. Our new range of richer tasting tea caters for just that!” said Nicola Tougher, Lyons Tea Brand Manager.

NIVEA VISAGE Q10 PLUS IMPROVED FORMULA MILLIONS of women trust in Nivea Visage Q10 Plus anti-wrinkle products. In fact a Nivea Q10 Plus product is sold every two seconds around the world. Nivea Visage Q10 Plus Anti-Wrinkle system helps fight the appearance of fine lines and wrinkles and visibly smoothes the skin. Q10 is a coenzyme, found naturally within skin cells, that plays a dual role as both an energiser and an anti-oxidant. Nivea researchers are continuously looking for ways to improve product formulas, and this has led to the perfect ingredient to further enhance the Nivea Visage Q10 Plus formula: creatine. Like Q10, creatine acts as a valuable energiser. The new and improved Nivea Visage Q10 Plus formula, which combines both Q10 and creatine, supports the skin’s natural cell renewal process. The new, improved formula now ensures that the skin is intensely hydrated for a beautifully fresh and radiant complexion.

WINSTON PRICE REDUCTION JTI has announced the further reduction of the Recommended Retail Price of Winston cigarettes, the world’s number two brand, with Winston Red and Winston Blue now having an RRP of €7.75. The economic crisis and a large tax-driven price increase of 45 cent have led to unprecedented consumer down-trading from premium cigarettes to cheaper options available in: (i) the newly created sub-value sector in cigarettes, and (ii) roll your own. April saw JTI reducing the RRP of a number of its key brands and since then, the increased gap between the Premium and the Sub-value Retail Sales Prices has continued to fuel the growth of the sub-value share. This has necessitated a further price reduction of the Winston brands.

Vita Coco Launched VITA Coco, the much anticipated coconut water brand, has reached Irish shores just in time to provide natural hydration throughout the summer. The nutritional properties of Vita Coco Coconut Water have won the brand a loyal following from athletes and celebrities to fashion editors, fitness gurus and beauty experts. Sienna Miller, Halle Berry, Jessica Simpson, Ed Westwick and Jay-Z have all been spotted with Vita Coco in recent months and Madonna, Matthew McConaughey, Demi Moore and Anthony Kiedis have become such big fans they have actually invested in the brand. Most recently, popstar Rihanna has become the face of Vita Coco.

Vita Coco Coconut Water is available in three sizes, 330ml, 500ml and 1litre, as well as four natural flavours produced by combining the 100% natural coconut water with fruit puree.

NEW STORK EASY TO MIX BAKING LIQUID STORK, Ireland’s most trusted home baking brand, has introduced Stork Easy to Mix Baking Liquid, a new liquid format of Stork which is easy-touse and quicker to blend, saving time and effort when baking. Stork Easy to Mix Baking Liquid is conveniently packaged in a handy bottle for use in place of butter. It can be poured straight from the container into a mixing bowl, so there’s no need for melting or softening, helping even the most time-poor cooks or novice bakers to create delicious cakes, muffins and brownies. Stork Easy to Mix Baking Liquid is available in a 500ml bottle with a recommended retail price of €2.19. Home bakers can also access inspirational recipes and top baking tips at www.bakewithstork.ie.

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www.retailnews.ie|June 2012|Retail News|51

Drinks News BUSHMILLS SPONSORS IRISH OPEN BUSHMILLS Irish Whiskey, which has been handcrafted on the North Coast of Ireland for centuries, has agreed a deal to sponsor the 2012 Irish Open at Royal Portrush Golf Club.

The sponsorship means that Bushmills Irish Whiskey is the official whiskey of the 2012 Irish Open and has exclusive whiskey pouring rights at the tournament. To celebrate the sponsorship, Colum Egan, Master Distiller at the Old Bushmills Distillery, is offering the winner of the tournament the ‘Freedom of the Old Bushmills Distillery’, an honour that will see them granted the keys to his private reserve. “It has been 65 years since the Irish Open was contested at Royal Portrush Golf Club and I am delighted that Bushmills Irish Whiskey will be part of one of the biggest sporting events to have ever been staged on the North Coast of Ireland,” said Colum Egan, pictured with Philip Tweedy, Captain at Royal Portrush Golf Club.

BRITVIC LAUNCHES NEW APP BRITVIC Ireland’s licensed wholesale division have launched a free ‘Pub Hub App’, to coincide with the opening of their third Business Success Forum, designed to help grow and revitalise the licensed trade. The new app, available exclusively to Britvic customers, will connect publicans directly with consumers using the internet as a zero-cost and efficient marketing tool to develop and sustain customer loyalty. The Pub Hub app enables publicans to communicate their in-pub offers and deals to customers, who can search by venue or by deal and can share offers and deals with friends online via a range of integrated social media platforms. Pictured at the Business Success Forum are Finbarr O’Doherty; David FitzGerald; Debbie Vard, Britvic Ireland; Donal O’Keeffe, Chief Executive, LVA; Gerry Rafter, President, VFI; and Enda Keogh, Chairman, LVA.

NEW LOOK FOR TULLAMORE DEW TULLAMORE DEW has a premium new look that embodies the brand’s award winning taste, authenticity and unique Irish story. The new Tullamore Dew bottle will start appearing on-shelf from July 16.

“With the new Tullamore Dew bottle, we wanted to build our brand and the category’s premium credentials through telling our authentic story. You’ll see this spirit portrayed in our new pack,” noted Shane Hoyne, Global Brand Director for Tullamore Dew (pictured). The new look highlights the brand’s award-winning whiskey credentials and tells the story of its unique heritage.

Corona Fastnet Short Film Festival THE Corona Fastnet Short Film Festival 2012, which took place in Schull, West Cork, recently, was hailed as a resounding success for title sponsors Corona Extra, distributed by Barry & Fitzwilliam. The festival showcased 153 submitted films, numerous workshops and seminars, and brought together first time filmmakers, established directors, producers and film buffs of all ilks. Reputable members from the film world, including Lenny Abrahamson (Adam & Paul) and Mike Leigh (Naked, Topsy Turvy) were onset during the Film Festival to provide an informative insight into the ‘Craft of Direction’ as well as taking part in open platform discussions which were well attended by budding film makers. Best of Festival Winner, Ruán Magan, is pictured with Michael Barry, MD of Barry & Fitzwilliam, at the event.

BALLYGOWAN PARTNERS WITH IRISH OPEN BALLYGOWAN Natural Mineral Water has announced a new and exclusive three-year agreement with The European Tour as the official water and soft drinks partner to the Irish Open. The sponsorship announcement comes as the prestigious event returns to Northern Ireland for the first time in nearly 60 years at Royal Portrush Golf Club. “Ballygowan Natural Mineral Water is thrilled to be sponsoring the Irish Open. We have a long and proud tradition of supporting sporting events across the island of Ireland and in this momentous year as the eyes of the world continue to focus on Northern Ireland’s world class players, there has never been a better time to be associated with golf and the golfing world and this very special Championship,” noted Kevin Donnelly, Marketing Director, Britvic Ireland, pictured with James Finnigan, Commercial Director of The European Tour.

52|Retail News|June 2012|www.retailnews.ie

On the Vine

:\TTLY Sparklers Jean Smullen SVVRZ H[ [OL ZWHYRSPUN ^PULZ [V Z[VJR [OPZ Z\TTLY FIVE years ago, it was all about Champagne sales: the boom time was in full swing and sales of Champagne were on the increase. Fast forward to 2012 and sales of Champagne have fallen significantly due to the volume growth coming from cheaper/value offerings such as Prosecco, Cava and New World Sparkling Wine.

Since 2010, Champagne has continued to lose share to sparkling wine as this category grows and expands. Sparkling wine now has 80% share of the Champagne/ Sparkling market in the supermarkets. Sparkling wines continue to enjoy double digit volume growth, but the value is being eroded due to trading down to below €10 with Prosecco offerings and those

lower alcohol sparkling wines. Today, the market for sparkling wines is being driven by the strong performance of Prosecco, Cava and sparkling Rosé wines from the New World.

Here is a short summary of the key ‘must stock’ sparkling wine styles.

Prosecco The DOCG is for a dry white wine labelled Tranquille (still), or for the sparkling wines labelled either Gentile or Frizzante (slightly sparkling) or Spumante (fully sparkling).

The driest wines are labelled brut, and the sweeter ones ‘extra dry’.

Prosecco used to be both the name of the grape and the wine but in 2009, the wine laws of the region were changed and the grape is now known as Glera.

its own in 1970 when the Spanish agreed to drop the term ‘champagne’ in favour of a newly created appellation called Cava (which actually means Cellar in Spanish).

Within 10 years, Cava had become the second most popular bottle fermented sparkling wine appellation in the world.

Most Cava is produced in Catalonia in Northern Spain. The grapes used are Macabeo, Xarel-lo and Parrellada. Not all Cava is made from white grapes.

There are Rosado Cavas available as well and the grapes permitted in those wines are Garnacha (Grenache), Monastrell (Mourvedre), Pinot Noir and Trepat.

Cava

New World Sparkling Wines

The Spanish sparking wine industry really came into

Many new world countries produce sparkling wine.

They use either the tank (cuvee close) method or ‘method champenoise’ (second fermentation in the bottle).

Countries in this category include: South Africa - their sparking wines made by method champenoise are called Cape Classique; Chile and New Zealand, whose move to sparkling wine production has been relatively recent; California, whose sparkling wine industry dates back to 1888; and Australia, who first started to produce sparkling wine as early as 1843.

SPARKLING SUCCESS STORIES Cono Sur Sparkling €14.99 – Chile (Findlater Wine & Spirit Group) This stands out for a great combination of varieties, with Riesling and Pinot Noir contributing acidity and structure, while Chardonnay gives classic elegance to this excellent sparkling wine from Chile. Fruit is sourced in Bio Bio, one of the most Southerly of the Chilean wine regions. An exciting wine with naturally fresh acidity.

[yellow tail] Bubbles Rosé NV €14.99 – Australia (Gleeson Incorporating Gilbeys) [yellow tail] has become a very popular wine brand with the Irish consumer. Bubbles Rosé is their sparkling wine promotion at the moment and will be throughout this summer.

This holds great appeal with the younger consumer who enjoys sparkling wine. Light and fresh with lovely cherry fruit flavours, this is a wine that has great party appeal!

www.retailnews.ie|June 2012|Retail News|53

On the Vine Jacobs Creek Chardonnay/Pinot Noir €12.99 – Australia (Irish Distillers Pernod Ricard) The Jacob’s Creek Chardonnay Pinot Noir Brut Cuvee is an NV (non vintage) sparkling wine. Freshness of fruit flavours and yeast complexity are achieved by the inclusion of more than one vintage during assemblage (blending). Chardonnay and Pinot Noir grapes are harvested early in vintage when they have fresh varietal flavours and high natural acidity.

The retention of natural acidity is important to the style of this wine, giving the palate a crisp and vibrant finish. Excellent.

Codorníu Clásico €15.99 - Spain DO Cava (Barry & Fitzwilliam) Codorníu is one of the most innovative Cava producers in Penedes. The Cava is called ‘Clásico’ as it is made from the traditional blend of Xarel·lo, Macabeo and Parellada. The wine is made using the ‘Traditional Method’ and is aged for more than the required minimum period of nine months to give it a more bready, yeasty character. It has a lovely dry finish.

Pink NV €16.79 – Australia (Edward Dillon & Co. Ltd) Produced by Yellowglen, Pink is a fun sparkling wine that will very much appeal to those who likes to drink rosé wines with bubbles. Made from a blend of 78% Chardonnay, 20% Pinot Noir and 2% Shiraz, this is a very summery wine. It has distinctive summer fruit flavours such as raspberry, strawberry and cherry, and a light pink colour which is distinctive. This is a light fresh party wine that will appeal to the younger generation.

Hoya de Cadenas Brut Nature Cava €14.99 – Spain (Cassidy Wines) This is a very good quality Cava. Made in the drier style, Brut Nature is made mainly from the Macabeo grape. It is very fruit driven in terms of its style and will appeal to the consumer who likes Cava. This will be on offer at € 12.99 during the summer, and at this price, it is definitely one to stock.

Brancott Estate Sparkling Sauvignon €15.99 – New Zealand (Irish Distillers/Pernod Ricard) This is a relatively new wine style from New Zealand which was launched globally in 2011. Most New Zealand wineries are now producing this. The wine has been carbonated rather than bottle fermented, to retain the fruit flavours rather than gain yeast autolysis characters. Brancott Estate is a very good example of this new wine style. It will appeal to the younger consumer who loves Sauvignon Blanc and who also loves wine with bubbles. Fresh with all the lovely green apple Sauvignon character, this is a must stock!

Wolf Blass Red Label €14.99 – Australia (Edward Dillon & Co) This is a classic Australian sparkling wine. Made from a blend of two grapes, Chardonnay (white) and Pinot Noir (red), it is a premium New World sparkling wine with lovely peach/pear character, backed by a crisp citrus fruit flavour. The Chardonnay and Pinot Noir are vinified separately; they then undergo malolactic fermentation before being blended together. This gives a classic character to the wine which is more rounded and puts this wine in the premium cuvee category. Definitely recommended for those who know about and like to drink good quality sparkling wines.

Mateus Rosé Sparkling Brut Rosé €14.99 – Portugal (Findater Wine & Spirit Merchants) This is an iconic wine brand from Portugal.

The Mateus Rosé Sparkling Brut Rosé is a non vintage sparkling wine. Made in a youthful fresh contemporary style from the Baga grape, this is another new development in the brand’s range of rosé styles. Baga is a red grape variety from the Bairrada region in Portugal. It is known for both its high levels of acidity and tannin.

When vinified as a Rosé, this grape variety lends a fresh acidity and strong character to the wine. Highly recommended.

FOR THAT SPECIAL OCCASION Hunters Sparkling Miru Miru NV €26.00 – New Zealand (Gleeson Incorporating Gilbeys) Jane Hunter is one of New Zealand’s best known wine figures. Coming from Australia, she met and married Irishman Ernie Hunter who died in a tragic car accident in 1987. She went on to build up one of New Zealand’s most respected wineries, and one which I was lucky enough to visit in 2011. This is their top end sparkling wine. It is ‘method champenoise’ and made from 60% Chardonnay and 40% Pinot Noir. Miru Miru is their export brand: beautifully fresh with lots of ripe fruit and great development potential. A classic!

54|Retail News|June 2012|www.retailnews.ie

Shelf Life DENNY has announced its sponsorship of Fair City on RTE One. The sponsorship, which commenced in May, will run for two years and will allow Denny to promote its range of products to Irish TV viewers, helping the Denny brand get into the homes of Irish families on weekday evenings as well as onto the shelves of Fair City’s local SPAR convenience store. This is Denny’s first TV sponsorship, one which Kerry Foods believes represents a great fit for one of the country’s most established and popular grocery brands.

Pictured at the sponsorship announcement on the set of Fair City are: Robert Blythe, Marketing Manager, Kerry Foods Raw Meats Portfolio; Nicola Weldon, Marketing Manager, Kerry Foods Cooked Meats Portfolio; Vanessa Kiely, Senior Account Manager, Vizeum; and Gerry McGuinness, Sponsorship Manager, RTÉ.

THE Arthur Guinness Fund will this year award €700,000 to social entrepreneurs. Over a twoyear programme, the awardees will receive between €50,000 and €100,000 each, depending on if they are ‘start-up projects’ which have been established in the past two years or ‘take-off’ projects which are at a more advanced stage in their development. The Arthur Guinness Fund is designed to support social entrepreneurs in all parts of Ireland and to date, the Fund has awarded €1.65m, along with business mentoring to 20 projects across Ireland.

CADBURY have announced an agreement with RTÉ to sponsor all RTÉ Sport coverage of the London 2012 Olympic Games, a deal valued at over €700,000, promising wall-to-wall coverage across TV, radio & digital platforms throughout the London 2012 Olympic Games. With a 70% reach of all adults on RTÉ Television, the new agreement will see prominent Cadbury branding across 25 commercial breaks each day of the TV coverage during the Games (July 27 – August 12), along with a presence on the dedicated Olympics section on RTE.ie, across live streamed coverage and ‘catch-up’. The integrated sponsorship package will reach an audience of in excess of one million viewers. Pictured are Darragh Maloney and Peter Collins, RTÉ Sport, with Greta Hammel, Marketing Manager - Chocolate, Kraft Foods Ireland.

A CORK-BASED food business has joined Moby, Ozzy Osbourne, Sinéad O’Connor and Russell Brand in the VegFest UK ‘Hall of Fame’. Dee’s Organic Omega Burgers have been voted as one of the top five meat-free meal options in the ‘vegan sausages and burgers’ category, in a poll run by organisers of VegFest UK, which took place recently in Bristol. Deirdre Collins, who established Dee’s Eat Well, Be Happy in 2009, says it’s another fantastic step forward as she works to boost the brand’s profile in the UK. Here at home Dee’s Eat Well, Be Happy helped to promote Ireland’s first ever ‘National Vegetarian Week’ recently.

MAGAZINES Ireland and Tesco have come together to increase the range of Irish magazines available in Tesco stores nationwide from June 18, 2012. “We commissioned Lucid Direct to revamp our magazine newsstand category to increase the number and range of Irish magazines available to customers,” said Tesco Ireland CEO, Tony Keohane.

“This latest investment in Tesco stores once again highlights our commitment to Ireland. The new range will improve customers’ shopping experience and offer a better choice of magazines, reflecting our customers’ needs.” The move was welcomed

by Duan Stokes, Chairman, Magazines Ireland (pictured): “We are delighted to work with Tesco to increase the range of Irish magazines. Irish readers are hugely loyal to Irish magazines, which are much more relevant to them than imported titles.”

THE Kellogg Company of Ireland is adding Vitamin D across its kids and family cereals portfolio in order to help tackle the growing issue of health problems relating to Vitamin D deficiency among Irish children. According to the National Children’s Food Survey, the addition of Vitamin D at a level of 4.2ug/100g to Kellogg’s breakfast cereals could increase a child’s mean daily intake of Vitamin D by approximately 25%. It is important that every day, commonly eaten foods are fortified in order to have an impact on children’s Vitamin D levels in the diet. Kellogg’s children’s cereals are in 75% of households, so by adding vitamin D to these cereals, Kellogg’s will be helping to boost levels of the sunshine nutrient.

CONGRATULATIONS to Lidl, who have triumphed in the Grocer Own Label Awards, picking up two Gold medals and three Silvers. Lidl won Gold for their Deluxe Irish Unsmoked Dry Cure Rindless Back Bacon Rashers, made by Oakpark Foods from County Tipperary, and Lidl Deluxe Fruit Granola.

Their Silver award winners included Lidl’s Deluxe Premium Pork Sausages, made by Olhausen’s exclusively for Lidl, Lidl Deluxe Seafood Chowder, from McEvoy Family Foods Ltd, and Lidl Kanpur Garden Indian Snacks.

OVER 110,000 people attended the Bavaria City Racing Dublin motorsport demonstration during the June Bank Holiday Weekend, despite an unseasonably cold downpour in the capital. The event successfully transformed Dublin City centre into a spectacular race track, providing the citizens of Dublin with five full hours of free non-stop entertainment. Over 70 vehicles were involved in the Bavaria City Racing motorsport demonstration, including former F1 World Champion Jenson Button, who wowed the crowds in his Vodafone McLaren F1 car.

s 'ALAXY BRAND SUPPORTED FULL YEAR ON 46 s 3UPPORTED BY 'ALAXY "ITES OUTDOOR CAMPAIGN s 0RESS AND SAMPLING CAMPAIGN s )N STORE DISPLAY SOLUTION WITH SMALL FOOTPRINT SUITABLE FOR ALL STORES