March 2011
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March11Contents
■ inside view A New Beginning for Grocery NOW that the General Election is over and the new Government is in place, the time is right for the new cabinet to follow through on their promises to Ireland’s grocery sector. Both Fine Gael and Labour spoke about small business being the lifeblood of Ireland’s economy during the run-up to the Election, and now they have a chance to prove it. Both parties promised a ban on upward-only rent reviews, while the issues of local authority rates and rising energy costs also need to be dealt with. Perhaps the biggest single factor facing the Irish store owner today, however, is the cost of wages, as dictated by the JLC rates, which many commentators feel are both antiquated and excessive. Indeed, this is one of the issues which comes under the microscope as we talk to CSNA President Liam O’Connor in a hard-hitting interview, where he speaks frankly about Ireland’s struggling newsagency sector and what the incoming Government needs to do to ensure viable small businesses in Ireland (Page 24). The CSNA are not the only body calling on the Government to aid our ailing retail sector, with both IBEC and Retail Excellence Ireland detailing what they believe our new coalition Government needs to do to give indigenous business the best chance of survival. See our news story on Page 7 for more information. Also in our news pages, our Chief News Reporter, Pavel Barter reports on what spiralling fuel prices mean for Ireland’s grocery sector (Page 4 & 5), with some of the biggest names in grocery calling on the Government to introduce temporary tax relief on fuel. The Government needs to act now if it is going to help Ireland’s indigenous retail sector to survive. A strong retail sector means healthy employment figures and less people on the Live Register. If the right decisions are made, this could be a new beginning for our sector, one of the biggest employers in the country.
NIVEA Shakes Up Skincare
NIVEA Invisible for Black & White Deodorant is a brand spanking new innovation that means those irritating white marks on black clothes and yellow stains on white clothes associated with deodorant use could be a thing of the past! While NIVEA Invisible for Black & White Deodorant offers amongst the most advanced ‘white mark’ protection on the market, the real bonus is that it also offers protection against yellow stains on white clothes. NIVEA Invisible for Black & White Deodorant is the first and only deodorant we have seen on the Irish market to offer protection against the permanent yellow staining of white and light clothes, and being a NIVEA deodorant, it goes without saying that the effective clothing stain protection doesn’t compromise the deodorant’s skin care or antiperspirant credentials. This incredibly gentle formula does not contain alcohol or colourants and its skin tolerance is dermatologically proven. NIVEA Invisible for Black & White Deodorant is available as a 150ml spray (RRSP €2.89), a 50ml roll-on (RRSP €2.79) and as a 35ml mini spray (RRSP €1.69). NIVEA Invisible for Black & White Power is available as a 150ml spray (RRSP €2.89) and a 50ml roll-on (RRSP €2.79).
“Over 53 years serving the Irish Kathleen Belton, Editorial & Marketing Director
grocery trade.”
Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton Editor: John Walshe
johnwalshe@tarapublishingco.com
Advertising: Kathleen Belton Pat Murray
kathleen@tarapublishingco.com pat@tarapublishingco.com
Chief News Reporter: Pavel Barter
Wine Correspondent: Jean Smullen
T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2. Tel: (01) 2413095 Fax: (01) 2413010 Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Subscription to Retail News: €95 plus VAT Email: aoife@tarapublishingco.com Origination by: Rooney Media Graphics
Printed by: W&G Baird
Another innovation, NIVEA Express Hydration Body Lotion harnesses Nobel Prize winning technology to boost the body’s own hydration system, delivering 24 hour moisturisation in an incredibly light, easily absorbed, Lotus Flower scented formula. The secret behind the innovation lies in HYDRA-IQ, a new ingredient inspired by the Nobel Prize winning discovery of AquaPorins – previously unknown proteins that form small pores in the cell membrane that regulate the transportation of water into the cell. Well hydrated skin relies on a good network of AquaPorins to deliver moisture to the skin surface. The culmination of seven years of research into AquaPorins, HYDRA-IQ has been shown to increase the level of AquaPorins, thereby improving the transport of water that can travel between cells, resulting in superior hydration.
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March11Contents
Contents March 2011
News 4Rising Fuel Prices Hitting Grocery Hard.
5Confusion over Dublin Transport Ticket Scheme. 6Newspaper Sales Remain Robust; Steep Costs for Irish Business.
7 7Retail Sector Wages War on JLC Rates; ICMSA Calls for Milk Industry Watchdog. 8Fines for Tobacco Smuggling Too Low – ITMAC; Simon Burke Leaves Superquinn. 9Homegrown Talent Honoured at Irish Food Awards; Walmart Sales to Reach €500m by 2014; Price Increases Hit Shoppers Hard.
Centra Quality Awards 14No fewer than 344
The Retail News Interview 24CSNA President Liam
stores have been awarded a Centra Quality Award for 2011, independently audited by the Excellence Ireland Quality Association.
O’Connor speaks frankly about Ireland’s struggling newsagency sector and what the incoming Government needs to do to ensure viable small businesses in Ireland.
Shop Profile 16Revamping an already successful store in the midst of a recession may not be the most obvious course of action, but for Colin Fee’s MACE store in the Greenacres Shopping Centre, Dundalk, Co. Louth, it made perfect business sense.
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Ethnic Foods 18Country Crest MD, Michael Hoey explains why he believes their new range of ethnic ready meals, From The Orient will prove successful, as well as talking us through the company’s core belief in sustainability.
Finance 38A ‘dry receivership’ can afford a distressed company all the benefits of receivership with none of the publicity, according to Brendan O’Donoghue from Russell Brennan Keane.
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On The Vine 28Jean Smullen examines the performance of New Zealand wines in Ireland and predicts some surefire winners across a variety of price points for your shelves.
Fairtrade 36Contrary to what might be expected during the recession, Fairtrade sales continue to grow in Ireland. With the recent Fairtrade Fortnight highlighting the trend.
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Shelf Life 40All the latest news and gossip from the trade.
Regulars 10 Industry News 30 Drinks News Sectoral Reports 20 Baby Food 32 Dairy Wall
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March11News
Rising Fuel Prices Hitting RISING fuel prices are putting forecourt retailers and distributors in jeopardy, RETAIL NEWS reports. Fuel prices recently rose to over €1.50 per litre: the highest price ever charged for fuel in Ireland, although international oil prices have yet to reach record levels. As a result, motorists have less disposable income to spend when visiting a filling station. “On the frontline of the fuel price increases, and sharply feeling its effects, are forecourt retailers,” said Conor Faughnan of AA Roadwatch. “As sure as apples fall from trees, if all of your customers are presented with a significant drop in disposable income, that has got to have a significant effect on convenience retailers.”
they do on fuel. If I was paying €140 per month for fuel and I’m now paying €220, inevitably I’m going to have less disposable income. That could mean one less jumbo breakfast roll, one less takeaway coffee. All of those things add up. It makes the business of forecourt retailing significantly more challenging.” The unprecedented high price of fuel is also having an impact upon goods distributors, such as Musgrave, who have large fleets of delivery trucks on the road. Ireland is relatively unique as a country, as 96% of all our freight moves by road, and there is an oil-priced component in practically every service within the Irish economy. Inevitably, rising fuel prices push up the cost of doing business for everybody.
“This comes at a terrible time for all businesses and for people personally,” a Musgrave spokesperson told RETAIL NEWS. “The last thing we need is a fuel price hike. As if things weren’t bad enough as it is, it adds to our costs overall, which we have to take the hit on, whilst continuing to reduce prices for the consumer.” Willie O’Byrne, MD, BWG Foods, added: “With a nationwide distribution network supplying approximately 900 local stores across the country, we are significant consumers of fuel. Instances of extraordinary fuel inflation, such as that witnessed in recent weeks, can have a significant impact on our cost base in what are already challenging trading conditions.”
Fuel Prices: Where Does Your Money Go? WHEN you spend €1.50 on a litre of petrol or €1.45 on a litre of Diesel, where does the money go? According to a recent AA survey, 50% of motorists are trying to reduce mileage in order to save money, due to rising oil prices. The typical Irish driver, who covers 12,000 miles per year and gets 30 miles per gallon out of their car, will purchase 150 litres of fuel per month. In January 2009, when petrol cost 94c per litre, consumers were paying €141 per month. Now they have to spend €225. “One of the first places that would manifest itself is in discretionary purchases made by motorists as they buy fuel,” continued Faughnan. “Service stations make a limited margin on fuel sales. A garage probably makes more money on newspapers and coffee than 4
PETROL :
PUMP PRICE Excise including carbon NORA (National Oil Reserves Levy) VAT Total taxes: Pre-tax price Tax as Percentage
€1.50 57.662c 2c 26c 85.662c 64.378c 57.12%
DIESEL
PUMP PRICE Excise including carbon NORA (National Oil Reserves Levy) VAT Total taxes Pre tax price Tax as %
€1.45 46.570c 2c 25.165c 73.735c 71.265c 50.085%
(Source: AA Ireland)
March11News
Grocery Hard Faughnan contends that if prices continue to rise, the price of retail goods will be affected. “Faced with rising fuel prices, domestic haulage companies have two choices: absorb those prices themselves, which will affect profitability, often unsustainably so. Or they can pass them on down the food chain. Eventually, that will mean the ordinary domestic consumer will pick up the bill for that. There are limits.” Recent years have seen drastic hikes in pump price. But while current unrest in the Middle East is a significant factor, as well as market worries and increased global demand, commentators hold the Irish Government’s high taxation on fuel to account. Of the €1.50 spent on each litre of petrol, almost two-thirds are taxed. These hikes have largely taken place over the last couple of years. Following the budget in April 2009, excise duty was 50.88c per litre on petrol, 40.93c on diesel. The December 2009 budget introduced a 4.18c carbon tax on unleaded (4.86c on diesel). In December
“If I was paying €140 per month for fuel and I’m now paying €220, inevitably I’m going to have less disposable income… It makes the business of forecourt retailing significantly more challenging.”
2010’s budget, excise increased on petrol by a further 3.31c; diesel by 1.65c. The AA have called on Ireland’s new administration to abolish the increase introduced in the last budget, a sentiment echoed by BWG’s O’Byrne: “While we are conscious of the country’s fiscal situation and the fact the Government has little room to manoeuvre when it comes to excise duty, it is important that we keep industry moving. As such, we would encourage the Government to consider temporary tax relief on fuel, while uncertainty around oil supply artificially inflates fuel prices,” he told RETAIL NEWS. Faughnan believes there is a strong business and fiscal case around reducing duty on petrol and diesel. However, when asked to predict the future of the market, he is less sure. Over the last two and a half years, oil prices have
plummeted from $150 per barrel to €33 per barrel, and back up again to €120 per barrel. “What happens long term we don’t know, but I think we can be sure that it will be volatile,” he said. In other words, the only thing Irish retailers can be certain of - around the price of petrol and its impact on the sector - is uncertainty.
Confusion over Dublin Transport Ticket Scheme RETAILERS have been left confused by a new integrated ticket system (ITS), designed to simplify Dublin public transport. One Tallaght-based retailer told RETAIL NEWS that Payzone, who were awarded the contract for ITS, told them they would need to switch over all their electronic payments, including Top-Up and the M50 toll payments, from their existing provider in order to sell the integrated tickets via a Payzone terminal. “A Payzone representative told us we would have to switch over,” the retailer alleged. “They gave us the impression you couldn’t have the two together… Had we known that wasn’t the case, we wouldn’t have bothered switching over.” However, Payzone have denied that there was any obligation on retailers to switch over from other services, or that representatives had advised retailers to do so. “There is no requirement that a retailer must switch their other services to Payzone in order to participate in the scheme,” a Payzone spokesperson told RETAIL NEWS in a statement. “In order to ensure that each area has sufficient coverage to meet local consumer demand, if an existing retailer does not wish to participate in the Integrated Ticketing Scheme, the service will then be offered to another local retailer.” “Retailers who are not current Payzone agents will need a Payzone terminal installed as the ITS transactions are processed through the Payzone terminal. If a retailer has a cur-
rent terminal from Payzone, the hardware and software required for ITS will be installed on that terminal. If a retailer is currently not a Payzone agent, Payzone will work out a commercial arrangement with them.” The ITS smart card, which is due to commence in 2012, will be usable on Dublin Bus, Luas, Irish Rail, some Bus Éireann services, and some private bus services. PayZone were awarded the contract by the Rail Procurement Agency (RPA) in an open consultation. “The Integrated Ticketing Scheme will provide a pay-asyou-go system on re-usable smart cards, allowing commuters to travel seamlessly between the different forms of transport in the Greater Dublin Area,” state Payzone. “As a priority, existing transport ticket agents are the first retailers to be offered the opportunity to avail of Integrated Ticketing. The majority of Dublin Bus Agents are already Payzone agents and have the Payzone terminal installed.” 5
March11News
Newspaper Sales Remain Robust IRISH consumers still enjoy burying their noses in a newspaper. New data from the Joint National Readership Survey (JNRS) reveals that over 84% of Irish adults - 2.96m people over the age of 15 - regularly read a daily or Sunday newspaper. The figures compare favourably to other countries. Around 50% of Irish adults regularly read a daily paper, compared to 39.8% in the UK and 40.9% in the US. This amounts to a weekly spend of €7m on national titles. In the lead: the Irish Independent, with 539,000 daily readers. The Irish Times has 339,000 readers and the Irish Examiner is in third place with 175,000. In the Sunday market, the Sunday Independent leads the way with 1.006 million readers, followed by the Sunday World, which has 821,000. Recent years have seen newspaper success stories. The English Daily Mail sold a meagre amount of copies, but sales rose spectacularly when it became the Irish Daily Mail. However, most publications have experienced falls in readership. The Irish Independent, for example, is down 7.2%, and the Examiner has fallen 15%.
Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), points out that despite continuing readership success, the newspaper market is declining: 40m fewer papers were sold from 2007 to 2010. A newsagent’s margin on newspaper sales is determined by a percentage of the wholesale price. If a paper costs €1, VAT inclusive, the retailer gets 25%, or 25c. If the price rises to €2, the retailer gets 50c. Although this has taken some sting out of the decline, 40m less papers sold can affect other aspects of the business in terms of footfall. “When someone comes in to buy the paper, the lottery, or a packet of cigarettes, they are most likely to buy something else as well. It’s a planned purchase with other products. If fewer people come in to buy the paper, there are lost opportunities for sales of additional products,” Jennings told RETAIL NEWS. Retailers have been hit by the recent closures of Star on Sunday and the
Sunday Tribune. “The Tribune was one of those papers that people frequently bought as an addendum to something else,” he continued. “A person bought the Sunday Times or the Indo and the Tribune as well. It was a purchase that was additional to their first choice.” Retailers also lose sales to free or discounted newspapers at hotels and bars, added Jennings. Regional newspapers remain significant generators of footfall, however, with 480,000 provincial weeklies sold. According to JNRS stats, 570,000 daily newspapers are bought in the Republic, which increases to 900,000 on Sundays.
Steep Cost for Irish Business BUSINESS costs are continuing to rise in Ireland. A new report from cross border body, InterTradeIreland, reveals that 82% of businesses believe costs will remain high over the next 12 months. A Retail Ireland survey also found a large degree of pessimism amongst Irish retailers about the trading outlook. Around 56% of Retail Ireland’s
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respondent’s rated prospects for their business as “poor”, or “very poor”, from March to May. “The main concern appears to be rates and energy,” Owen McGuinness, Policy Research Manager, InterTradeIreland, told RETAIL NEWS. “Retailers weren’t citing labour costs as much as energy, rates and local government taxes.”
69% of businesses reported an increase in energy costs in the last quarter of 2010. 59% felt a hit in transport costs, while 57% saw their rates and taxes increase. Utility costs and local government funding was a particular issue in the Republic, said McGuinness. “Businesses in the south are getting hammered because of the funding gap for local government. The issue of how to fund local government needs to be addressed.” The outgoing Oireachtas Joint Committee on Enterprise & Trade made a number of recommendations in regard to supporting the retail trade, including a reduction in commercial utility costs, and Fine Gael and Labour have proposed a ban on upward-only rent reviews. Nevertheless, the road ahead appears rocky for Irish business. CSO figures show a 1.2% year-onyear decline in retail sales volumes, for January 2011.
March11News
Retail Sector Wages War on JLC Rates THE new Programme for Government wants to reform, rather than abolish, the Joint Labour Committee (JLC) system, according to IBEC, the group that represents Irish business. IBEC have called upon the incoming government to adhere to structural reforms agreed with the IMF. “Current wage rules, under the JLC system, are putting viable businesses in jeopardy,” said Brendan McGinty, IBEC Director of Industrial Relations. “Many of Ireland’s regulated wage rates are too high by international standards and are a major stumbling block to regaining competitiveness and creating jobs. A complete overhaul, rather than a tinkering with the system, is required. “The national minimum wage, along with a substantial body of protective employment legislation, removes the rationale for the system that sets mandatory minimum rates of pay in specific sectors,” he continued. “The current system of Employment Regulation Orders (EROs) is doing nothing to sustain jobs by setting pay rates at an average premium of 23% higher than the national minimum wage. In 2010, Irish average
labour costs were 18% above the EU average.” Meanwhile, Retail Excellence Ireland has welcomed the incoming Government’s “appointment of independent chairpersons to each of the Joint Labour Committees and the move to mirror JLC pay rates with the minimum wage” as positive moves. Indeed, REI has broadly welcomed the new Programme for Government’s commitments to act swiftly on its pledges to reform commercial rents and retail industry wage setting mechanisms. “In the run-up to the election, both Fine Gael and Labour put forward very progressive proposals to address the huge problems facing Ireland’s retail sector in terms of upwards only rent reviews, industry wage setting and commercial rates,” noted David Fitzsimons, REI Chief Executive Officer. “With a new Programme for Government agreed, now is the time for action.” “Over 44,000 people have lost their jobs in the retail industry over the past 30 months,” Fitzsimons warned. “If reform is not prioritized, we estimate
David Fitzsimons, Chief Executive Officer, Retail Excellence Ireland.
that another 30,000 jobs will be put at risk. We estimate that this will cost the exchequer in the region of €600m each year.” Fitzsimons also called on the new Government to design and implement a series of measures to help lift Irish consumer sentiment: “December 2010 was the 34th consecutive month of sales decline in the retail industry. As the biggest employer in Ireland, the retail industry will be central to the country’s economic recovery.”
ICMSA Calls for Milk Industry Watchdog JACKIE Cahill, president of the Irish Creamery Milk Suppliers Association, has called for the establishment of a European agency to supervise production costs and prices of milk. Cahill told RETAIL NEWS that multiple retailers dictate the prices to the producer and consumer. “Retailers have a greater percentage share of the consumer price,” he said. “I don’t think there’s any argument that the major retailers have the processes where they can dictate how much margin they want to take, and dictate their terms to the processers.” The multiples’ use of milk as a loss leader is also to the detriment of smaller retailers, he added: “Small retailers haven’t the volume of sales to be able to compete. Door to door delivery of milk is being destroyed by the price of milk in some of the major retailers.” 7
March11News
Fines for Tobacco Smuggling Too Low – ITMAC FIGURES released by the Revenue Commissioners have shown that there is still no deterrent to the Illegal Tobacco trade in Ireland, according to the Irish Tobacco Manufacturers Advisory Committee (ITMAC). Over €1 billion has been lost to the Irish economy over the past two years from the smuggling and selling of illegal tobacco in Ireland and criminals are still evading sufficient punishments. The Defaulters List figures for the last quarter of 2010, from October 1 to December 31, showed that the average fine for someone who was smuggling illegal tobacco was €782. The figures also showed that the average fine for someone who was caught selling illegal tobacco in that period was €3,145. “These figures again exemplify the problem of the illegal tobacco trade in the country,” noted an ITMAC spokesperson. “Criminal gangs are making €3m
per week from the illegal tobacco trade and they can make a profit of €1.2m on every container that is smuggled into Ireland but yet the fine for smuggling is €782. While we welcome the slight increase from the 3rd quarter average fine of €594, this will still not hit the criminals where it hurts “Recent research by the Revenue Commissioners has shown that the high cost of cigarettes in Ireland is pushing more and more people to the black market with baggage handlers, taxi drivers and builders some of those named on the latest defaulters list for tobacco smuggling and selling.”
Simon Burke Leaves Superquinn SUPERQUINN has confirmed that Simon Burke (pictured) has stepped down as Non-Executive Chairman of the company. Simon was Executive Chairman of the company from 2005 until the beginning of December 2010, when a new Chief Executive Officer was appointed. Simon, who has growing commitments in the UK, agreed to stay on as Non-Executive Chairman for two months to facilitate handover of his executive responsibilities to the new Chief Executive. He remains a shareholder of Superquinn. He is succeeded as Non-Executive Chairman by Kieran Ryan.
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While acknowledging that Customs and the Gardaí are putting increased pressure on these criminals, ITMAC called on the new Government to follow through on their Programme for Government that states clearly there will be an “Increase in the penalty for tobacco smuggling” and that they will “provide robust detection measures to counteract such smuggling”.
Planning Ahead TESCO has been given the all clear to open an off-licence in Dublin’s Temple Bar. The supermarket giant’s initial application was rejected after a district judge criticised the way in which it had made planning and off-license applications elsewhere in Ireland. At Tesco’s subsequent appeal in the Circuit Civil Court, Dermot Gleeson, one of the State’s senior counsel, said that few applicants have been denied an off-licences on grounds of character. “It is not as if they were running a shebeen or hired some sort of lunatic as a manager or had a string of convictions,” he said. Meanwhile, Ennis Town Council has stalled a €40m retail park, after a number of local organisations, as well as independent retail group, RGDATA, lodged objections. Tara Buckley, RGDATA Director General, said that the out of town development, located on the Limerick Road, “goes against the spirit of the Retail Planning Guidelines regarding maintaining the vitality of viability of Ennis town centre”.
March11News
Homegrown Talent Honoured at Irish Food Awards THE spotlight was turned on independent, grass-roots food producers at the recent unveiling of the winners of the Irish Food Writers’ Guild Food Awards 2011. The awards highlight the vital work of small, independent Irish food producers, at a time when supporting home-grown industry is of the utmost importance. Those rewarded for standards of excellence and for their exceptional contribution to Ireland’s reputation as a top food producing country were: Janet Drew for Janet’s Country Fayre Beetroot Blush (Wicklow); Brian and Lindy O’Hara for Coopershill House Irish Venison (Sligo); Pat O’Neill for O’Neill Foods’ Dry Cured Rashers, Bacon and Ham (Wexford), with a special Environmental Award going to John Flahavan of Flahavan’s (Waterford).
Artisan baking innovator, Derek O’Brien, was honoured with the Guild’s seldomawarded Lifetime Achievement Award. Derek, a former head of the Baking Department at DIT and head of the Baking Academy of Ireland, was honoured for so sucDarina Allen presents John Flahavan of Flahavan’s cessfully passing with a Special Environmental Award at the Irish Food Writers’ Guild Food Awards. on his passion for bread-making and his continuing dedication to passing on ing the survival of traditional craft bakskills to the next generation and ensuring in Ireland.
Price Increases Hit Shoppers Hard THE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending February 20, show shoppers are feeling the pinch from increasing food prices. Overall market growth slowed slightly to 1.6%, compared to 1.7% last month. However, shoppers are paying substantially more for their groceries, with the price of food increasing by 5.3% compared to 3.9% in the last period. Families already financially stretched have found themselves paying more for household staples such as fruit, vegetables and breakfast cereals, which, as well as beer and lager, have seen significant hikes in price. “Grocery inflation now stands almost 4% ahead of market growth and we expect to see this gap increase as consumers cut back on their spending in three distinct ways,” said David Berry, Kantar Worldpanel Ireland. “As well as reducing the overall amount of groceries they buy, shoppers are increasingly choosing own label over branded goods, which now account for 34% of money spent on groceries; the highest level we have ever seen. Finally, shoppers are
now spending a higher proportion of their weekly shop at the discounters, reducing the overall amount of money spent.” The retailers with a strong own label offering have benefited, with Tesco, Aldi and Lidl all gaining market share and growing ahead of the market. Aldi posted the strongest growth, increasing its sales by 25.7% and growing its market share by 0.6% since this time last year. Similarly, Tesco and Lidl achieved sales growth of 4.8% and 3.0% respectively. Following a successful Christmas trading period, SuperValu has continued to outperform the market, increasing its market share to 20.2% from 19.9% last year. SuperValu has recently placed more emphasis on developing its own brand range in recent months, according to Kantar, which has helped the retailer to maintain growth ahead of the market. At the premium end of the retail spectrum, Superquinn has suffered from consumers cutting back, and Dunnes has also experienced negative sales growth in the latest period.
Walmart Sales to Reach €500m by 2014 WALMART, the world’s largest retailer, will soon reach half a trillion US dollars in sales, according to the latest forecasts from international food and grocery analysts IGD. Walmart will remain the world’s largest retailer in 2015, with a CAGR of 4.7% taking global sales to €401,753m. It will pass half a trillion US dollars in 2014. The figures also reveal that Tesco is set to grow its global business by 7.5% a year. With a compound annual growth rate (CAGR) of 7.5% between 2010 and 2015, Tesco is set to be the fastest growing retailer of the global grocery top four. Driven by sharing best practice in areas like loyalty and services across its markets, and particularly by activity in Asia, it will grow sales to €106,074m by 2015 (compared with €73,777m in 2010). 9
March11Industry
News
Centra to Create 500 Jobs
Cadbury Races Ahead
CENTRA is set to add 17 new stores and over 500 jobs to its network in 2011, 200 of these being created in greenfield sites. This represents an investment of €23m by Centra’s retail partners, reflecting their confidence in the brand. This announcement was made at the Centra National Conference, where Martin Kelleher, Managing Director of Centra, revealed to the over 470 Centra retail partners in attendance that Centra recorded €1.4 billion in sales in 2010. In addition, he outlined that Centra continues to outperform the market (-2% versus the rest of the convenience market at -6.5%), growing at twice the rate of its nearest competitor and serving over 3.5m customers per week. Pictured are (l-r): Martin Kelleher, Managing Director, Centra; Michael Morgan, Sales Director, Centra; and Gareth Jordan, Chairman, Centra Retailer Council.
CADBURY have launched a €750,000 marketing campaign, as they unveil ‘Cadbury Spots v Stripes Race Season’, the next phase in the successful Spots v Stripes initiative, marking their position as Official Treat Provider to the London 2012 Olympic Games, Team Ireland and Paralympics Ireland. This latest phase of the Spots v Stripes campaign kicks off with the launch of a rich multi-media campaign, involving a 60 second TV ad highlighting the Big Race concept, along with heavyweight digital activity driving participation through social media, a national outdoor campaign and extensive POS, and regional radio promotional activity. Cadbury are also launching the Big Race bar – a limited edition new chocolate wafer bar which gives you the chance to become an official World Record holder by taking part in a simple on-pack challenge.
Five Stars for SPAR
Kellogg’s to Raise Funds for Crumlin Hospital POP duo Jedward were out in full force to launch the Kellogg’s Fun Raise 4 Kids Secondary Schools’ Challenge in aid of Our Lady’s Children’s Hospital, Crumlin. The poptastic pair got into the Fun Raising spirit by taking part in a giant egg and spoon race and a threelegged challenge to encourage secondary school students to organise fun, active events to raise valuable funds for the hospital. For the past 12 years, Kellogg’s Fun Raise 4 Kids has raised more than €2m for the hospital with the Children’s Medical & Research Foundation. See www. kelloggs.ie/funraise4kids for more information.
SPAR and EUROSPAR retailers from across the country travelled to Lyrath Estate Hotel in Kilkenny recently for the annual 5 Star Awards ceremony. The awards programme, which is run by SPAR Ireland in association with the Excellence Ireland Quality Association (EIQA), is now in its 11th year and recognises excellence in all areas of store performance. Over 170 independent retailers picked up the prestigious 5 Star Award. A further 100 stores received special recognition after being named 5 Star Award winners for five consecutive years. Willie O’Byrne, MD, BWG Foods (pictured), said: “SPAR and EUROSPAR retailers the length and breadth of Ireland should be congratulated for their dedication to ensuring we are market leaders in this regard. The management of SPAR understand the importance of constantly re-evaluating and updating our 5 Star assessment methods and standards and our retailers always meet the challenge of achieving them.”
Topaz and McDonald’s Announce €6m Development
TOPAZ and McDonald’s have announced a combined investment of €6m in a new service station at the Cashel interchange on the M8 Dublin to Cork. The new services area, the first one to serve the M8, will create up to 100 jobs and will operate on a 24-hour basis from opening. Works have commenced on the new facility, which is being built on a 1.75 acre site, and it is expected to open in May. When complete, the Topaz shop will be 250 square metres; upstairs will have seating for 42 people, and there will be parking for up to 40 cars. Pictured at the announcement of the joint initiative are Eddie O’Brien, Chief Executive of Topaz and John Atherton, Managing Director, McDonald’s Restaurants of Ireland. 10
March11Industry
News
Deloitte Announce Best Managed Companies INDEPENDENT drinks distributor, Barry & Fitzwilliam has been declared one of the winners of the Deloitte Best Managed Company Awards at a gala awards ceremony in The Burlington Hotel, Dublin, recently. The Deloitte Best Managed Companies Awards Programme recognises indigenous Irish companies across the island of Ireland which are operating at the highest levels of business performance. The programme seeks to identify best managed companies through a valuation process that extends far beyond financial results. The programme is unique in that it recognises the efforts of the entire organisation, not just one individual. Michael Barry, Managing Director of Barry & Fitzwilliam, in accepting the award on behalf of his colleagues, stated: “With over 100 premium international brands, 70 staff and an anticipated turnover of €72m in 2011, we are always adding to our portfolio in order to enhance our reputation as a key
Pictured at the Deloitte Best Managed Companies in Ireland Awards are John Williamson, Chief Financial Officer, Topaz; Paul Candon, Corporate Services and Marketing Director, Topaz; Miriam O’Callaghan; Frank Gleeson, Retail Director, Topaz; and Eddie O’Brien, Chief Executive, Topaz.
Award winners Barry & Fitzwilliam pictured at the Deloitte Best Managed Companies Awards (l-r): Ger O’Mahoney, Regional Partner in Charge at Deloitte; Kathleen & Michael Barry of Barry & Fitzwilliam; and Damian Fadden, Director, Irish Life Corporate Business.
player in the industry. This award copper-fastens our reputation as a serious player in our market sector and this is really important to us and to our loyal staff.” Topaz were also recognised at the awards, in the first year when the company was eligible for nomination. Paul Candon, Marketing and Corporate Services Director with Topaz said it’s a great honour to be recognised under this Programme: “It’s a fantastic opportunity for Topaz to measure its performance against the best companies in the country, and the fact that we rate so highly is an achievement we’re extremely proud of. For such a young company, we are delighted to be recognised.” Other winners included the Herlihy Supermarket Group, Cork; Nature’s Best from Louth and Silver Hill Foods from Monaghan.
Mickey Rourke Up for Election BEER Brand Bavaria recently launched a campaign to elect Mickey Rourke in the General Election. Mickey featured on billboards across the country with the Vote No 1 message. He also featured in the new Bavaria TV ad. A campaign website has been set up on Bavaria.ie to promote the manifesto. People who visit the site can vote for Mickey and be in with a chance to win a trip to New York with flights and accommodation at The Waldorf Astoria hotel where the TV ad was filmed! Entry on www.Bavaria.ie
Bloom Returns to the Phoenix Park in June BORD Bia is delighted to announce the return of Bloom, Ireland’s leading flower, food and family festival, this June bank holiday weekend. Bloom 2011 will take place from Thursday, June 2, to Monday, June 6, at the Phoenix Park, Dublin. The event, which has attracted over 200,000 visitors since its inaugural staging in 2007, is set to be five days full of flowers, food and fun for all the family. Last year’s event was a spectacular success with record crowds and stunning show gardens. Key features for Bloom 2011 include a fabulous artisan food area, incorporating Ireland’s largest farmers market and the chef’s stage, where the best of Ireland’s culinary geniuses will demonstrate throughout the weekend. Don’t miss next month’s RETAIL NEWS for your chance to win one of five double passes to Bloom 2011. For more information, see www.bloominthepark.com. 12
F A R M I N G
I N
H A R M O N Y
W I T H
N A T U R E
NEW Country Crest Meals No Hydrogenated Fats No artificial colourings or preservatives Gluten Free* Country Crest has launched an exciting new Range of Oriental Prepared Meals which include: Sweet & Sour Chicken, Cantonese Chicken Curry, Lamb Rogan Josh* Chicken Makhani* All served with a generous portion of rice. And the good news is that the two Indian recipes are GLUTEN FREE!
Quick & Easy to prepare Microwaveable in 3mins Edible from the pack – spork included Perfect for Lunch or Dinner The From the Orient range is available in all major retail and independent outlets nationwide.
Country Crest Rathmooney, Lusk, Co. Dublin, Ireland. Tel: 353 1 843 7061 Fax: 353 1 843 9492 Email: info@countrycrest.ie
March11Centra
Quality Awards
Centra Tops for Hygiene No fewer than 344 stores have been awarded a Centra Quality Award for 2011, independently audited by the Excellence Ireland Quality Association.
Hygiene
and quality are not just an additional extra in Centra stores across the country, but a way of working that is engrained in how the independent retailers that make up the convenience store network carry out their business. Year-on-year, these entrepreneurial food retailers continue to push out the boundaries of excellence, with 344 stores receiving a Centra Quality Award for 2011, which is independently audited by the Excellence Ireland Quality Association. This is the highest number of awards given to any single organisation in the country. A further 50 Centra stores received the Supreme Hygiene Award, which rewards retailers who have performed to a consistently high level over a three year period. “This number of awards demonstrate Centra’s commitment to meticulous quality measures, the highest of standards and excellence in customer care,” stressed Martin Kelleher, Managing Director, Centra. “Being awarded no fewer than 344 National Hygiene Awards highlights the fact that Centra retailers are consistently achieving the highest retail standards in the country. In the area of hygiene standards, the Irish food sector has an
Michael Morgan, Centra Sales Director, and Soraid McEntee, Excellence Ireland (far right) are pictured presenting store owners Rachel and Damien Kilmartin, Kilmartin’s Centra, Athlone and Batlough, Co. Westmeath, with the Supreme Excellence Ireland National Hygiene Award at the 2011 Centra Quality Awards.
increasing responsibility to its customers. This duty, which is of the utmost importance, is in addition to responsibility in areas of price, service and range.”
Wider Stakeholder Interests
Kelleher went on to note how Centra is also conscious of its “wider stakeholder interests”. “We do not just pay lip service when we talk about supporting Ireland Inc. and the communities in which we live and work,” he explained. “Our level of local purchasing far out-weighs any of our competitors, with 75% of all products purchased by Musgrave on behalf of its retail partners in Centra either produced or sourced in Ireland. Between us, we employ over 15,000 people across our network, offering consumers great choice and value, no matter where they live.” Added Irene Collins, Managing Director of Cecil Whiteside and John McLoughlin, Whiteside’s Centra, Collooney, Co. Sligo, Excellence Ireland Quality receive the Supreme Excellence Ireland Association; “The Hygiene National Hygiene Award from Michael Mark indicates that a business Morgan, Centra Sales Director, and Soraid carries the highest standards McEntee, Excellence Ireland.
14
of hygiene and food safety within their given industry. The food retail market currently dominates the field in terms of hygiene and quality compliance within the Irish food sector and Centra is certainly one of our leading lights within that sector. What impresses me most about Centra is the way they continue to raise the bar every year. “It is very important that such achievements are acknowledged and applauded and so become an incentive for others to strive to reach the same high standards. Centra has a well-deserved reputation for high standards with their approach to hygiene and quality not just an addon to what they do, but very much a part of their everyday routine.”
Michael Morgan, Centra Sales Director and Soraid McEntee, Excellence Ireland, present store owner Kevin Reidy, Reidy’s Centra, Foynes, Co. Limerick with the Supreme Excellence Ireland National Hygiene Award.
Martin Kelleher, Managing Director, Centra and Irene Collins, Managing Director, Excellence Ireland (far right), presenting store owner Breda Cahill and Richie Finan, Cahill’s Centra, Ballinteer with the Supreme Excellence Ireland National Hygiene Award.
March11Shop
Profile
MACE Shines in Dundalk Revamping an already successful store in the middle of a recession may not be the most obvious course of action, but for Colin Fee’s MACE store in the Greenacres Shopping Centre, Dundalk, Co. Louth, it made perfect business sense.
Colin
Fee’s MACE store in the Greenacres Shopping Centre, Dundalk, has recently undergone a complete revamp, which sets it up to perfectly meet the needs of its local catchment area over the coming years. Colin has been operating a petrol forecourt for over two decades, and has spent the last 15 years successfully trading as part of the MACE group. He opened his first petrol forecourt in Dundalk in 1989, introducing a forecourt store seven years later. At that time, he chose MACE as a partner in the project and he has been working successfully with the group ever since. 2002 saw the store owner buying the shop in the Greenacres Shopping Centre on Avenue Road, Dundalk, which has just been extensively redeveloped, transforming the look and feel of the shop, as part of a broader business strategy that focuses on providing a high quality product at a fair price.
Colin Fee, pictured outside his MACE store in the Greenacres Shopping Centre, Dundalk.
“There’s no doubt that trading conditions are difficult at the moment,” Colin tells RETAIL NEWS, “but there are still customers out there. People are still doing top-up shops and basket shops, which is where this shop’s market is, but less so than in the past, and you have to compete very hard to win sales.”
Impressive Redevelopment The store owner acknowledges that the Greenacres shop was “in need of a revamp for some time” but that he had delayed it because of the harsh economic reality, but that this year, he felt that not to upgrade the store would have been detrimental to his business: “I know Dundalk and this area well and I felt that there was trade that the old style shop was unable to exploit, so I decided to undertake the redevelopment of the shop.” Costs were minimised by avoiding any construction work to increase the size of the building. However, every aspect of the shop was updated, with a strong focus on introducing energy saving elements to provide ongoing savings behind the attractive fresh finish of the MACE image. The position of the shop, on the corner of the shopping centre block, gives it a dual aspect and apart from the till area, the full length of both exterior walls has been opened up with windows that both flood the shop with light and put the interior finish on display to all passers-by, particularly at night.
Changing Focus It wasn’t just an image facelift, however. “Along with updating the image, we have also shifted the focus of the business,” Colin explains. “With the size of the shop, there is no way I can compete purely on the basis of price with large multiples or shops in Northern Ireland. However, I can offer 16
March11Shop
a pleasant and convenient shopping experience and I can offer good quality products at good value for money prices. The emphasis across the shop is on good quality, from the Glenmór range of pre-packed meats to our new line of prepack fruit and veg with price points of €1, €2, €3, etc, for added convenience of purchase. Likewise, the wines are all now offered on a price point, rather than type or country of origin basis. We give our customers good quality and the easiest possible shopping experience.” The quality shines through again in the Perk Coffee Shop element. Incorporated into the deli, it offers seriously good coffee and a spacious and extremely comfortable sitdown area that takes advantage of the tremendous amount of window space to offer customers in need of a break ample time to gaze at the goings-on outside, while relaxing with their delicious fair-trade coffee and a tasty treat to while away recession blues. This is the first full Perk Coffee Shop to be incorporated into a MACE shop and so far the trial is looking very good. “You have to distinguish yourself,” stresses Colin, tellingly. Throughout the boom years, retailers and symbol groups in this country strove to create destination shops in a thriving economy, driving standards in the sector to very high levels. The idea of distinguishing your shop in a highly competitive market filled with increasingly discerning customers can still deliver success, if implemented properly.
“The customer wants to get value for money and I want to get my margin,” Colin explains. “The solution is to go for a higher quality option and price it fairly: that way the customer gets a good deal for what they buy and I get margin and volume. In the deli, as in the rest of the shop, we focus
Profile
on quality. This shop uses only Irish farmed chicken and although it is more expensive than foreign bred birds, people really do notice the difference in quality and flavour and are willing to pay a little more. Of course, MACE also provide me with very strong Point of Sale material to promote the value offers on branded goods that my partnership with the group allows me to offer my customers. It’s all about getting the focus and the balance right.”
Energy Saving Solutions Innovating energy saving elements such as the Daikin aircondition system, which uses the heat generated by the chill and freezer cabinets to feed warm air into the shop, the use of LED technology to illuminate the MACE signage, allied to efforts by the MACE group to deliver group saving schemes from service providers, all contribute to minimising running costs and will ensure significant long term savings. “I have been working with MACE for a very long time now,” Colin summarises. “I have always worked well with the group and to this day the support, advice, expertise and assistance from MACE keeps improving. There is no FACT FILE doubt that working Owner: Colin Fee with MACE has Location: Greenacres Shopping Centre, helped me deal Venue Road, Dundalk, Co. Louth better with the Size: 2,300 square feet trading condiNumber of tions I have Staff: 14, full time & part time faced in the past Opening few years and it Hours: 07:00-23:00, Monday-Sunday. will help me to do so into the future.” 17
March11Ethnic
Foods
Country Crest have just launched a brand new range of ethnic ready meals, From The Orient. MD Michael Hoey explains why he believes the new range will prove successful, as well as talking us through the company’s core belief in sustainability.
On the Crest of a Wave Some
people would say that introducing a brand new range of value-added ready meals is a very brave move in the midst of a tough recession. So why did Country Crest decide that now is the right time to launch ‘From The Orient’, a range of four ethnic ready meals which the company feels will generate an estimated €2m in retail sales. “A lot of people would say we probably are mad, launching From The Orient in the middle of a recession, but you have to take lots of things into consideration,” laughs Michael Hoey, MD, Country Crest. “I heard an interview with someone from Lego on the radio, where they said that the time to build brands is in deep recession, because it focuses the mind. Everyone is striving for survival. For example, a lot of people have reduced the amount of times they eat out, maybe down from twice or three times a week, and that’s the type of market that we’re focusing on. The From The Orient range is targeted at the younger consumer who is looking for something different; they want a nutritious and wholesome meal with the bonus of extra convenience.” Convenience really is king when it comes to From The Orient, which comes packed in a New York style din18
ner box: “all consumers have to do is pour the sachets of rice and sauce into the box, microwave it for three minutes, let it stand for a minute and eat it straight from the box.” The new range is available in four different flavours, Cantonese Chicken, Sweet & Sour Chicken, Lamb Rogan Josh and Chicken Makhani, while Country Crest are currently working on extending the range, with some noodle dishes in the pipeline. The range has been designed specifically to appeal to Irish consumers, with the company’s R&D team carrying out extensive taste tests and focus groups to ensure the flavours were right. None of the four varieties contain added colours, preservatives or hydrogenated fats, while the glutenfree Lamb Rogan Josh and Chicken Makhani flavours, inspired by the Punjab regions of India, have been approved by the Coeliac Society of Ireland and are suitable for many dietary requirements. “There are up to 40,000 Coeliacs in Ireland and their choice of food is limited,” Hoey notes. “It is important to develop products to cater for their needs. Going forward, I think it’s important to cater for everyone and not to alienate any group of consumers.”
Value for Money Hoey is very aware that value for money tops the consumer agenda in Ireland. “We’re conscious that people have less and less money in their pockets. The other side of our business is in potato and vegetable growing, so we’re really in the muck and dirt industry, where people expect real value for money,” he smiles. “This is something that we wanted to carry across into our meal range. There’s no point in developing something that’s going to cost €7-8, which people can’t afford, so it ends up rotting on a supermarket shelf and being de-listed. We were very conscious of this, so we feel that our Recommended Retail Price of around €3.99 is hitting the sweet spot, being much cheaper than the local Chinese or Indian take-away.” The new range complements Country Crest’s other branded portfolio, From The Farm, a range of “traditional wholesome ready meals and vegetable accompaniments. Health is a huge concern for consumers, and we don’t put anything into a meal that you can’t find at home in your kitchen cupboard.” So just how difficult is it to address consumer health concerns while still delivering on taste and convenience?
March11Ethnic
“Sustainability is part of our core strategy within the business. Our living comes from the land, and these are finite resources that we are using, so we have to be mindful of that to prepare for the generations that are coming after us.” “There is a fine balance sometimes,” he admits, “particularly in terms of salt content. People are more conscious of what they are eating, and we have to be aware of that. This is something that may not have been a factor five years ago, but is very much so today and will continue to be an issue going forward.”
The Green Agenda Another issue very much top of mind with consumers is sustainability, which is also intrinsic to the ethos of Country Crest: “Sustainability is part of our core strategy within the business. Our living comes from the land, and these are finite resources that we are using, so we have to be mindful of that to prepare for the generations that are coming after us.” This is no idle boast. Country Crest currently generates approximately 70% of its energy needs, via a wind turbine. “Miriam Byrne, our Technical Director, is working continuously on a project to become 100% self-sufficient, and we’re
not far away from that now,” Michael explains. “It’s going to be achieved via bio-methane, which means diverting all our food waste from landfill and putting it through a bio-methane plant to provide electricity and heat. As a world, we are approaching peak oil production now, so this is the only way forward. This is an investment in all our futures and more companies need to focus on this issue.” This move involves a sizable financial investment, but according to Michael, it is not merely an altruistic manoeuvre but also will pay off in a business sense. Country Crest have already seen a marked decrease of over 50% on their electricity bills, and when the bio-methane plant is up and running, this should fall even further: “Our whole focus is on providing value for money and we cannot hike our prices, so every input that we are using, we have to be mindful of what it is costing us. We’re investing into our future now, because energy prices are only going one way and that is up.”
Foods
ucts we feel will fill those gaps and then develop them in conjunction with the supermarket in question.” He also pays tribute to the help they receive from Bord Bia in developing their range.
Bright Future And so, to the future. For Country Crest, it looks bright, with the company already opening up new markets in Northern Ireland and the UK. They also recently acquired a 23% share in dessert business Couverture, and plans are already in place to launch a series of joint products into the foodservice sector. “It’s a tough environment today, whether you’re a grower, packer, processor or retailer,” muses the MD. “But innovation is key to future success
Passion for Food The Country Crest story is an intriguing one, moving from potato growers to value added ready meal suppliers over the course of its 17 years in operation. “We’re farmers, first of all,” says Michael simply. “There is a passion for food that runs through the whole business and drives our growth. I don’t think there’s anybody in Country Crest who is involved in Model Yomiko is pictured with Country Crest’s From the business just to make The Orient range. money: this is a cut-throat industry and all the main supermarand we’re always looking for different kets are looking for their pound of areas we can develop in. Ireland is flesh, because they’re competing in a now exporting a lot of its young profesvery tough environment.” sionals, which are the people that we That said, Michael is very compliare targeting, so I don’t think we’ll mentary of the support Country Crest see a lot of growth in Ireland in the receives from the Irish retail sector near future. But there are opportuniin the development of new product ties outside this island and we’ll keep lines: “We are always looking for gaps innovating with new products and new in various categories to complement developments. Business, like life, can supermarkets’ own label lines, and we be a game of Snakes & Ladders and would go to them with a list of prodyou have to try to avoid the snakes.” 19
March11Baby
Food
Little Treasures Ireland’s baby food market continues to grow, despite the recession, as our high birth rate ensures growing demand.
The
recession has had little impact on the baby food category: fact. Indeed, 2010 saw the baby food category continue to increase in both value and volume terms, according to the latest report into the sector from Euromonitor International, who report a 4% rise in baby food sales by value in 2010. ACNielsen’s Scantrack values the market at €79m, with Milupa and Cow & Gate as the number one and two brands in the market (Source: Nielsen Scantrack Value Sales MAT Jan 23/11). Baby food is still big business all over the world, and the high birth rate in Ireland kept demand up, so new product launches were developed to satisfy all the needs of the new generation of mothers and babies. Indeed, Euromonitor predict that retail growth will become increasingly dependent on emerging markets, given their more favourable birth rates and economic prospects. Regardless of whether a market is developed or developing, however, adding value will be essential to future prospects and will help brands stave off private label encroachment. Trends like health and wellness, premiumisation, convenience and value-for-money influence factors like new product developments, packaging innovations, retail distribution and retail pricing, and will continue to do so into the future.
Danone Baby Nutrition Cow & Gate has been manufactured in Ireland since 1887 and continues to manufacture infant powdered milk today in its plants in Cork and Wexford. The Milupa/Aptamil Brand 20
This year saw the hugely successful launch of Cow & Gate Little Gourmet Meals, providing the perfect nutritional balance for toddlers, containing absolutely no preservatives and having no added salt.
is the top selling baby food brand in Ireland, which continues to drive growth within baby food year on year (Source: ACNielsen Scantrack Value Sales MAT Jan 23/11). Infant and Growing Up Milks are the most important part of the category, accounting for over 56% of category value. The Danone Baby Nutrition range offers a choice of
milks to suit both baby’s and toddler’s individual needs. The Milupa Aptamil Range contains a unique, clinically tested blend of GOS/FOS prebiotics oligosaccharide fibres. These are special carbohydrates that pass beyond the tummy into the gut and encourage babies’ and toddlers’ natural friendly bacteria to thrive. Iron is essential for growing toddlers. It is important for brain development, strong bones & teeth and healthy growth. Even with a balanced varied diet, it can be tricky to reach the recommended 8mg of iron a day. That’s why Cow & Gate have launched The Big Irish Iron Count to help parents check if their toddlers are meeting their daily requirements. Parents can log onto www.thebigironcount.ie to check their toddler’s iron intake. Here, they can also find lots of iron rich recipes
Cow & Gate looks after Little Gourmets
New Cow & Gate Little Gourmet meals are bursting with flavour, taste and texture. Each of these recipes provide the perfect nutritional balance for toddlers, contains absolutely no preservatives and has no added salt. Six new recipes are available for toddlers from 12 months onward: • Beef Stew • Chicken Macaroni • Spaghetti Bolognese • Sunday Lunch • Veg & Turkey Casserole • Veg & Turkey Pasta Bake New Cow & Gate Little Gourmet Custards are a delicious treat for babies aged 6 months and up. Available in Strawberry, Peach & Pear and Red Berry flavours, each of these scrumptious recipes contain absolutely no preservatives and less sugar than other leading brands.
Danone Baby Nutrition Wins ECR Category Management Award
Pictured are (l-r): Declan Carolan, General Manager, ECR; Susan D’Arcy, Co-Chair, ECR Category Management Workgroup; Sarah Dennehy, Danone Baby Nutrition; John Casey, ECR Co-Chair; Jane Ryan, Co-Chair, ECR Category Management Workgroup.
DANONE Baby Nutrition was recently announced as the first recipient of the ECR Ireland Category Management Award 2010: “Starting with an overwhelming consumer insight, Sarah Dennehy of Danone Baby Nutrition created a simple total category based solution that yielded positive results in two different retailers that demonstrated the real benefits of category management best practice. The panel of judges believed that for clarity of aim, practicality of solution, first class results combined with a very clear and punchy presentation that the first recipient of the ECR Category Management Award 2010 was Sarah Dennehy from Danone Baby Nutrition.”
March11Baby
Food
The Milupa Aptamil Range contains a unique, clinically tested blend of GOS/ FOS prebiotics oligosaccharide fibres; special carbohydrates that pass beyond the tummy into the gut and encourage babies’ and toddlers’ natural friendly bacteria to thrive.
and food ideas to help improve their toddler’s daily iron intake. Cow’s milk is a really low source of iron and it would take up to 12 litres of cow’s milk to meet a toddler’s daily requirements, while just two 150ml beakers of Cow & Gate Growing Up Milk is 50% of a toddler’s daily iron requirements. Growing-up milks
now represent 22% of the total baby/toddler milk market (Source: ACNielsen Scantrack, Value & Volume Sales MAT Jan 23/11) The wet meal market grew by 12% last year. Cow & Gate claims market leadership of this sector, with 39% market share by value. This year saw the hugely successful launch of Cow & Gate Little Gourmet Meals, bursting with flavour, taste and texture. Each of these recipes provide the perfect nutritional balance for toddlers, contain absolutely no preservatives and have no added salt. Six new recipes are available for toddlers from 12 months onward: Beef Stew; Chicken Macaroni; Spaghetti Bolognese; Sunday Lunch; Veg & Turkey; Casserole; Veg & Turkey Pasta Bake. New Cow & Gate Little Gourmet Custards are a delicious treat for babies aged 6 months and up. Available in Strawberry, Peach & Pear and Red Berry flavours, each of these scrumptious recipes contain absolutely no preservatives and less sugar than other leading brands, as well as being a source of calcium, important for the development of bones and teeth. The Fruit Pot Category is a very important part of the BabyFood category and is worth over €5.5m per annum. Cow & Gate 100% Fruit contains only fruit puree, with added vitamin C. Designed for babies and toddlers from 4 months to 3 years, they are the ideal way to put fruit in a baby’s diet while developing taste. 100% Fruit Pouches, in fun, squeezy pouches, allow for autonomous and ‘on the go’ feeding for toddlers. Cow &
Gate 100% Fruit enjoys a 45% market share MAT (Value). The dry meal market is valued at €7.3m, and accounts for 28% of the meals category. The Milupa Dry range, manufactured specifically for the Irish market, claims the majority share of the dry market with 76%. Milupa provides a wide range of nutritious cereals for growing babies – introducing a variety of flavours and
Milupa Wholegrain cereals are a nutritionally tailored cereal for babies from 8 months.
textures. Milupa cereals are based on the highest quality ingredients and they provide essential nutrients such as iron, calcium and vitamin C, which are vital for a baby’s healthy growth and development. Milupa Wholegrain cereals are a nutritionally tailored cereal for babies from 8 months. Made from a combination of wholegrain cereals that are low in salt, parents can just add their baby’s usual milk for a tasty, nutritious breakfast. Milupa Wholegrain
Danone Expands Baby Business in Ireland New Cow & Gate Little Gourmet Custards are a delicious treat for babies aged 6 months and up, available in Strawberry, Peach & Pear and Red Berry flavours. 22
DANONE is to spend €50m expanding its baby-food business in Ireland. The owner of the Cow & Gate and Aptamil brands plans to redevelop its manufacturing facility in Macroom, Co. Cork, which will lead to the creation of a new drying line at the site and treble capacity to 100,000 tonnes each year The move will also lead to the creation of around 40 jobs in food science, engineering and supply chain management.
March11Baby
also comes in a bigger 250g box - ideal for bigger appetites. The Juices & Finger Foods segments of the baby food category make up 11% in terms of value share (Source: AC Nielsen Scantrack, Jan 23, 2011). Danone Baby Nutrition was recently announced as the first recipient of the ECR Ireland Category Management Award 2010: “Starting with an overwhelming consumer insight, Sarah Dennehy of Danone Baby Nutrition created a simple total category based solution that yielded positive results in two different retailers that demonstrated the real benefits of category management best practice. The panel of judges believed that for clarity of aim, practicality of solution, first class results, combined with a very clear and punchy presentation, that the first recipient of the ECR Category Management
Bisphenol Banned in Baby Bottles A BAN prohibiting the manufacture in the European Union of baby bottles containing Bisphenol A (BPA) substance has entered into force. BPA is an organic molecule that is used in the manufacture of polycarbonate plastics, which –in turn– are used to manufacture plastic materials, such as baby bottles. Small amounts of BPA can be released from plastic containers into the food they carry –in the case of baby bottles that would be infant formula– if these containers are heated at high temperatures. “Due to the fact that there are uncertainties concerning the harmfulness of the exposure of infants to Bisphenol A, the Commission deemed it both necessary and appropriate to take action,” said John Dalli, Commissioner in charge of Health and Consumer Policy, “The aim is to further reduce the exposure of the most vulnerable part of our population –i.e. the infants– to the substance, thus safeguarding their health.”
Food
Award 2010 was Sarah Dennehy from Danone Baby Nutrition.”
Heinz Baby Food Heinz has been taking care of little appetites for generations with its comprehensive baby food range, offering everything for baby from Heinz Mum’s Own Recipe jars and trays, to rusks, baby cereals, juice, potted fruity custard desserts and the Heinz Cook at Home range. The highly successful Heinz Mum’s Own Recipe range is a unique concept in that all the varieties in the range are based on recipe suggestions that Heinz have gathered from real mums. Heinz Mum’s Own Recipe, in its bright, eye-catching packaging, offers lots of delicious breakfast, The highly successful Heinz Mum’s savoury and dessert varieties across Own Recipe range is a unique all age stages. Heinz Mum’s Own concept in that all the varieties Recipe also offers some of its most in the range are based on recipe suggestions that Heinz have popular savoury recipes across all gathered from real mums. age stages, so babies can enjoy their favourites, such as Cottage Pie, Heinz Farley’s Rusks, available Spaghetti Bolognese and Sunday in packs of nine or 18, are rich in Chicken Dinner, for longer, while still Calcium, Iron and Vitamins and discovering new, exciting textures. contain no added colours, flavourings Heinz understand that parents or preservatives. Heinz Rusks are believe that home cooked food is the also available in best food for their baby Reduced Sugar so the Heinz Cook At and Gluten-Free Home range of premium varieties. pastas, sauces and The popular gravies have been Heinz Farley’s specially developed for cereals range is babies and toddlers. ideal for breakfast Suitable from 7 months or dessert, and onwards, Heinz Cook includes all the at Home makes it easy favourites, such as for parents to cook for Sunrise Banana their baby confidently Cereal and at home with minimum Strawberry Yoghurt, effort. which are available Heinz Fruity in 125g packets. Custard Desserts are The Heinz baby a delicious blend of food range also creamy custard and offers a range of fruit purees such as recently repackaged Fruit Medley, Apple baby juices, with & Mango and Banana. varieties such as Suitable for all ages Pear and Apple in from 4-6+ months, each handy 750ml packs. pack contains 4x100g Whatever the desserts in convenient meal occasion, plastic pots, making Heinz Farley’s Rusks are rich Heinz has them the ideal dessert in Calcium, Iron and Vitamins something delicious or snack solution at and contain no added colours, to offer! home or on the move. flavourings or preservatives.
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March11Retail
News Interview
CSNA President Liam O’Connor speaks frankly about Ireland’s struggling newsagency business and what the incoming Government needs to do to ensure viable small businesses in Ireland.
The Voice of Small Retailers
Given
the current state of the economy and the strains and pressures on small business, there is no better time to become involved in a trade representative body to ensure that small retailers have a voice when it comes to big decisions. Such is the view of CSNA President Liam O’Connor. “When somebody is representing more than 1,400 members, their voice 24
is listened to,” he says. “When it comes to lobbying, it is vital to have your voice heard. Even in the recent General Election, every political party was adamant that small businesses were a big issue, whereas a few years ago, it was all about multinationals. Small business is now very much on Government’s agenda and that is thanks to associations like the CSNA.” Liam, who runs a newsagents in Killarney, Co. Kerry, has been a retailer for 25 years, and is a member of the CSNA since its inception, with half that time spend as a member of the Executive Committee. He is extremely well placed to comment on the state of the newsagency business in Ireland. “The newsagency business is really struggling at the moment,” he admits. “Being in a tourist area, we found that we started losing sales earlier than other stores, maybe a year and a half ago, due to reduced numbers of tourists at weekends and at mid-term breaks, for example. Our newspaper
and magazine sales are down 40% from peak. Our stationery and greeting card business has also seen a huge drop. “Last year was tough for the newsagency business, and it seems to be the same right across the country: everybody is in the same boat. People seem to be sitting on their hands and just not spending.” He points out that weekends, once a highlight of the week in terms of turnover, have become very quiet: “In rural areas, our strong days tend to be when the local newspaper comes out. Wednesday is now our lead day for the week, which it wouldn’t have been in the past, but it shows the importance of having something like a local paper, which can bring people to your store. For the older generation, the local newspaper is their Facebook or Twitter.” Liam describes December 2010 as “the perfect storm”. According to Liam, sales were levelling out coming up to December but the unholy trin-
March11Retail
ity of the IMF Bailout, the Budget and the snowstorms decimated business and “knocked Christmas on its head”. Even this year, Liam’s January sales are 8% behind those of last year, despite the heavy snowfalls in January 2010 that kept many consumers indoors.
The Wages Issue So what can be done to help smaller retailers to survive the current conditions? The biggest problem for small retailers, according to Liam, is the cost of wages. “The bulk of your costs are coming from your wages bill,” he stresses. “Store owners are trying to do most of the work themselves, because they cannot afford to pay staff. Nobody who has left work here over the last two years has been replaced and I don’t see myself being able to take on anybody else for the foreseeable future. Store owners are spending far more time and doing more than ever before, for less return.” So what would Liam like to see the incoming Government do to help small businesses like his own? “We all have core staff members, who are paid pretty well, and I don’t see any change in that,” he opines. “But if there is to be any hope for our sector to be able to employ additional staff, there has to be a change to the JLC rates. We are pushing for the abolition of JLC rates. We have the ridiculous situation where the minimum wage was reduced in January and yet the JLC rates went up, which doesn’t make any sense. We don’t want to take advantage of anybody, but if the rates keep increasing, many businesses won’t be able to survive.” One of the biggest problems with the JLC rates, as they stand, according to Liam, is that small, independent stores are being “lumped in with the big multiples. If there was a separate rate that could be based on size or turnover, it might give small retailers a chance. “If every small business in the country was able to take on just one extra staff member, there would be thousands of jobs created. But I feel we have to stop the flow of jobs being lost first, and hopefully be able to grow in the future.”
News Interview
“We have the ridiculous situation where the minimum wage was reduced in January and yet the JLC rates went up, which doesn’t make any sense. We don’t want to take advantage of anybody, but if the rates keep increasing, many businesses won’t be able to survive.” Local Authority Rates Local authority rates are another big issue: “Here in Killarney, we saw a reduction of 2.5% in rates, which was welcome, but there was no adjustment, for example, in Tralee. The Government needs to shake them up in a number of areas. We need a more significant reduction in the amount of rates, to give businesses a chance to survive. We also need easier methods of payment, instead of getting one whopper of a bill once a year.”
Tobacco Smuggling Tobacco smuggling is a further area of concern. One of the most important products in a convenience store in terms of generating turnover and footfall, the prevalence of tobacco smuggling in Ireland means that retailers are losing thousands of euro each day to the black market. “Even here in our shop, we see fluctuations in tobacco sales, depending on what amount of smuggled product is around,” Liam says. “We need the Government to allocate more resources to cutting out smuggling. We need more vigilance and more resources at ports and airports, and we also feel that the Gardaí are often turning a blind eye to tobacco sales from market stalls. We don’t need to remind retailers of all the legislation they have comply with to be able to sell cigarettes, and yet illegal tobacco and cigarettes are openly on sale in markets around the country. “The reason the Government haven’t increased excise duty on cigarettes in the last two budgets is
because they are aware of smuggling, but they need to really grab this issue by the scruff of the neck.” He also feels that the incoming Government needs to come good on its promise to ban upward-only rent reviews, which he feels “can’t continue because of what is happening on the ground: it is unsustainable”.
The Squeeze on Margins Speak to any retailer around the country and it won’t be long before the issue of margins crops up, no matter what they are selling. The last few years have seen a squeeze on margins, with a corresponding drop in profits.The newsagency business is no different.
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March11Retail
News Interview
“In rural areas, our strong days tend to be when the local newspaper comes out… It shows the importance of having something like a local paper, which can bring people to your store. For the older generation, the local newspaper is their Facebook or Twitter.” “25% is the norm for margins on newspaper and magazine sales, with some of them being a little lower,” Liam explains. “However, sometimes a special issue comes out with a margin which might be 2.5% less, with no explanation. This sounds like a small amount, but it all adds up over the course of a year. “Also, we have seen the demise of some papers, both national and local, which is a real shame. Across the board, we have seen a reduction in newspaper sales: where previously, people may have picked up two or even three Sunday papers, for example, now they are buying just one, if at all. There is also debate over the cost of delivery, whereby newsagents are paying for the cost of delivery in some cases, depending on the amount of copies sold, which is further biting into your bottom line. All of this impacts on our turnover and our profitability.”
The Growth of Freesheets The growth in the number of freesheets is a big concern, according to Liam. “The explosion of freesheets is dangerous for the newspaper industry here, and yet many retailers feel they need to stock them to ensure footfall into the shop,” he warns. “We had the situation in the UK, where the London Evening Standard went from being a paid-for paper to a freesheet, and you had the bizarre situation of some shops paying the London Evening Standard to ensure they were getting it delivered to their store, despite the fact that they weren’t making a penny on it.” 26
Despite the range of issues still to be resolved, Liam feels that Ireland’s two newspaper and magazine distributors “are certainly much more approachable than in the past”. They engage in regular meetings with newsagents and there are now guidelines which they follow – the Code of Practice for the Press Industry (COPPI). “They have to be reminded at times of these guidelines,” laughs Liam, “but it is definitely paying off.”
The Lack of Credit While negotiations with newspaper distributors may be improving, one area that is definitely not on the up is relationships with the banking sector. With all the main political parties agreeing that small business is the lifeblood of the country and the economy, Liam feels that it is imperative
that something be done to address the issue of credit or lack thereof. “The shortage of credit is a huge issue for small business,” he states. “The banks say that they are still giving out money, but when you talk to people on the ground, it seems that there is very little money being made available to small business. For many customers, instead of being given some leeway, their payments are being accelerated, which is putting more burden and more strain on the retailers and their businesses, and this will need to job losses.”
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March11On
the Vine
Focus On New Zealand Jean Smullen examines the performance of New Zealand wines in Ireland and predicts some sure-fire winners across a variety of price points for your shelves.
We
don’t need to remind anyone how tough the economic climate is in Ireland but it is a measure of confidence that New Zealand continues to invest in Ireland generically. The recent New Zealand Wine Fair reflected this, with 35 wineries showing 250 wines. The fact that exports to Ireland are up +12% (MAT to November 2010) reflects the Irish consumer’s continuing interest in the distinctive style offered by New Zealand’s ‘signature’ grape variety, Sauvignon Blanc. The over-supply problem, which resulted in discounting and pressure on prices and profitability, has been well documented, but the new strategy by New Zealand winegrowers to focus on value rather than volume will help to strengthen the category in this market. There are still a lot of consumers prepared to pay over €10 for a premium quality New Zealand wine. Another innovation that we can thank New Zealand for as we peruse Oyster Bay wines our wine shelves hope to broaden today, is the protheir appeal to Irish liferation of screwconsumers in 2011 caps. Over 90% with the addition of two new sparkling of New Zealand wines to the portfolio. wines are now The Brut and sealed this way. Rose wines will be distributed in Ireland The impetus for change arose from by Cassidy Wines.
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the New Zealand Screwcap Wine Seal Initiative established in early 2001. 10 years on, of the seven billion wine bottles sealed worldwide each year, the number using screwcaps has grown from an estimated 100m in 2001 to almost three billion in 2011. Wineries are on the increase too. In 2004, there were 463 wineries in New Zealand; by 2010, there were 672. As well as Sauvignon Blanc, there is also growing demand and appreciation for New Zealand’s other premium quality grapes, especially Pinot Noir and Syrah (the one to watch) and the aromatic varietals, including Riesling, Pinot Grigio, Vioginer, Pinot Gris, Chardonnay and Gewurztraminer.
Around the Vineyards Cloudy Bay, (Edward Dillon & Co), is still much sought after by its legion of loyal followers. A premium wine, when it comes to Cloudy Bay, price is never an issue. The creator of Cloudy Bay, Kevin Judd is now doing his own thing. His Greywacke range (Liberty Wines) is also quickly gathering momentum. Giesen Wines (Greenlea Wines/ Boyne Valley) are a new entrant to the Irish market and have made a good showing since they arrived here in 2010. A leading producer of competitively priced Marlborough Sauvignon Blanc, they are one of the biggest producers in New Zealand. Lawson Dry Hills (Febvre & Co.) have a strong relationship with the Irish market, as do Craggy Range (Febvre & Co.), who are famous for their quality. Villa Maria (Barry & Fitzwilliam) is another very strong NZ brand and should be on your
New Zealand Wines Under €10 2010 Esk Valley Sauvignon Blanc, Marlborough, €9.99 (Barry & Fitzwilliam) Good value Sauvignon Blanc, this is still under the radar but worth a look. 2010 Two Tracks Wither Hills Sauvignon Blanc, €8.99-€9.99 (Comans Wines) This is benchmark aromatic Sauvignon Blanc from NZ: great aromatics and great value. 2009 Villa Maria Private Bin Riesling €12.99 (on promotion at RRP €9.00) (Barry & Fitzwilliam) Riesling is one of the rising stars from New Zealand: this is a quality example. 2010 Giesen Estate Sauvignon Blanc/Riesling, Marlborough, €9.99 (Greenlea Wines/Boyne Valley) Well made, good quality wines, which enjoy a very good price/quality ratio. shelf, as should Hunter’s Estate (Gleeson Group/Gilbeys Wines). The most widely distributed New Zealand brand and certainly one with enormous visibility is Oyster Bay (Cassidy Wines), who hope to broaden their appeal to Irish consumers in 2011 with the addition of two new sparkling wines to the portfolio; Brut and Rose wines. Seifried Estate from Nelson (Classic Drinks) is another family
March11On
The Quality of Giesen Estate IN volume terms, Giesen is in the top five New Zealand Wine producers, yet is a relatively new entrant to the Irish market. Founded near Christchurch in 1981, at the time the southernmost vineyard in the world, Giesen is run by the three Giesen brothers, Theo, Marcel and Alex. Their focus on quality and value is clearly evident in their three superb whites, Chardonnay, Riesling and Sauvignon Blanc, which each retail at circa €10, whereas the Pinot Noir is also amazing value at circa €13. In addition to the Giesen Estate range, there is also their top level range known as The Brothers. The Giesen Estate and The Brothers brands are distributed in Ireland exclusively by Greenlea Wines, Drogheda, part of The Boyne Valley Group. See www. boynevalley.com or telephone 041 9870300 for more information.
Brancott Estate IN the early 1970s, the conventional wisdom in the New Zealand wine industry was that wine grapes would not ripen in the South Island. Brancott Estate Wines disregarded that ‘wisdom’ and planted vines in Marlborough on a grand scale. Included in the first plantings was the very little known variety, Sauvignon Blanc. When Brancott Estate took the brave steps of planting the first Sauvignon Blanc vines in Marlborough in 1975, little did they know the company would grow to become New Zealand’s largest producer and exporter of Marlborough Sauvignon Blanc wine. It’s been 30 years since they pioneered Marlborough Sauvignon Blanc and introduced the world to a flavour they had never experienced before. That one decision ultimately proved to be one of the most momentous decisions ever taken in the New Zealand wine industry. It brought together a place and a variety that combined to produce one of the great global wine styles - Marlborough Sauvignon Blanc. It was a decision that forever changed New Zealand wines’ place in the world. The full Brancott Estate Range, from Irish Distillers/ Pernod Ricard including Sauvignon Blanc, Pinot Noir and Pinot Grigio is available in leading stores, RSP, €12.95.
For That Special Occasion: Ultra Premium Wine from New Zealand 2008 Craggy Range, Syrah, Gimblett Gravels, €36.00 (Febvre & Co.) This shows the enormous potential that Syrah has in NZ. A classic!
the Vine
New Zealand Wines Over €10 2010 Brancott Estate Sauvignon Blanc, Marlborough, €12.95 (Irish Distillers/Pernod Ricard) A new name for a great value wine. Formerly Montana, this new branding and vintage is very good. 2010 Cloudy Bay Sauvignon Blanc, Marlborough, €27.69 (Edward Dillon & Co.) Price is no object for consumers of this wine. This year’s vintage is showing particularly well. 2010 Lawsons Dry Hills Pinot Gris, Marlborough, €18.00 (Febvre & Co) I love this wine: it always shows well at consumer tastings. Boutique winery, family owned. 2010 Oyster Bay Merlot, Marlborough, €11.99 (Cassidy Wines) This brand is hugely recognised by the consumer. This Merlot is very drinkable. 2008 Hunter’s Estate Pinot Noir, Marlborough, €19.95 (Gleeson Group/Gilbeys Wines) A “must have”, this is a great example of well made New Zealand Pinot Noir. 2010 Giesen Estate Pinot Noir, Marlborough, €12.95 (Greenlea Wines/Boyne Valley) A well made wine which enjoys a good price/quality ratio. estate worth looking at. Saint Clair Family Estate (Findlater Wine & Spirit Group) has a talented wine making team, headed by Matt Thompson (who was in Dublin) and their other brand, Matua Valley (also from Findlater Wine & Spirit Group) is worth a look. Wither Hills (Comans Wines) is a good value range of wines both at entry level and premium level. Finally, the giant of the industry Montana have changed their name to Brancott Estate (Irish Distillers/ Pernod Ricard): this is a “must stock”.
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March11Drinks
News
Bavaria Unveils New Look BEER brand Bavaria 4.3% has launched its new image on the Irish market, with a fresh new range of modern packaging hitting the shelves and bars all over the country. The great new look livery has been introduced to both the on and off trade in Ireland and around the world, aligning the brand’s global image. Brewed in Holland since 1719 by the Swinkels family, using natural mineral water from their own wells and malt from their own maltery, Bavaria is one of the biggest brewers in Europe. In Ireland, it is imported and managed by the Gleeson Group (inc) Gilbeys.
Corona Extra Celebrates 21 Years in Ireland ONE of Europe’s best loved beers, Corona Extra, celebrated its 21st Birthday in Ireland by taking to new heights. The brand chose the roof of The Herbert Park Hotel to display its tallest inflatable bottle balloon as part of its guerrilla marketing campaign ahead of the recent RBS Six Nations game between Ireland and France. Ireland has the highest per capita sales of Corona Extra outside of the USA and Mexico and it is a brand leader in the bottled beer market through out the country. The brand is distributed throughout Ireland by Barry & Fitzwilliam Ltd. Models Judy Kelleher and Hannah Devane are pictured with the inflatable bottle balloon.
Bulmers Sponsors Urban City Festival A NEW urban city music festival, sponsored by Bulmers will bring a collaborative fusion of music, art and fashion to the capital over the June Bank Holiday Weekend. Ireland’s newest festival and the first of the summer, Forbidden Fruit will see Bulmers partnering with festival organisers POD. Forbidden Fruit will have its inaugural outing in the Meadows at the Irish Museum of Modern Art on a site that will be constructed in the shape of an apple, immortalising the key ingredient behind Bulmers. The diverse line-up includes The Flaming Lips, Wild Beasts, Jape, Aphex Twin, Battles and Jamie XX. Pictured at the launch of the Forbidden Fruit music festival is Orlaith Fortune, Marketing Manager, Bulmers with model, Naomi Cullen, playing Eve to model, Milan’s, Adam.
Jameson Reaches Key Milestones JAMESON has reached two key milestones on its quest to become one of the world’s top spirit brands, according to the latest figures from Irish Distillers Pernod Ricard. Globally, Jameson sold over 3m cases in 2010, and 1m of these were consumed in its most important export market, the USA. “As one of Ireland’s most successful exports, Jameson is playing its role in the export led recovery which this country, this economy needs so badly at this juncture,” noted Alexandre Ricard, Chairman & CEO (pictured).” As a product that is distilled, matured and bottled in Ireland, a very significant proportion of all the inputs required to produce, distribute, sell and market Jameson are Irish – from raw materials to packaging, manufacturing jobs, sales and marketing resources and shipping. As this Irish brand continues to grow in its 100 + markets around the world, I can only see extra jobs and extra benefits for the Irish economy flowing from this success.”
Superquinn Spring French Wine Sale THE annual Superquinn Spring French Wine Sale runs from March 23 to April 19. Always a highlight in the wine calendar, this year the event is bigger and better than ever, featuring over 60 fantastic wines reduced by between 25% and 50%. Starting from €6 per bottle, the retailer is also offering an extra 5% off when customers purchase any six bottles, as well as a number of fantastic case deals. During the sale, Superquinn’s wine experts will be holding regular wine tastings in store every Friday between 5pm and 8pm. As always, this year’s wine sale has something for everyone, with over 40 bottles reduced to €10 or under, and plenty of top quality wines to choose from.
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March11Drinks
Ginger Joe Joins Barry & Fitzwilliam BARRY & Fitzwilliam has secured the Irish distribution rights of Ginger Joe, a premium Ginger Beer (ABV 4%). This ‘gingerable brew’ is brought to market by ginger experts Stone’s, who have been producing ginger wine for over 250 years. The quirky Ginger Joe character is inspired by ‘Ginger’ Joseph Stone, a moustachioed London greengrocer and illustrious founder of the house of Stone. “Ginger Joe’s overall concept has been extensively researched with consumers so we know they love the 330ml bottle size, design and most importantly the taste,” said Michael Barry, Managing Director of Barry & Fitzwilliam. “The bold, distinctive bottle design including its memorable moustache and catchy rhythmic name, will help give the brand stand-out on shelf and strong consumer recall.” A single 330ml Ginger Joe bottle will retail at €1.99 in the off trade.
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News
Responsibly.
Same on the inside. New on the outside.
Santa Rita 120 Local Hero of the Year 2011 JOE Browne (pictured), founder of the Cystic Fibrosis charity Build4Life, has been named the Santa Rita 120 Local Hero of the Year 2011 for his phenomenal fundraising efforts to build a Cystic Fibrosis Unit at Cork University Hospital, raising €2.2m over the last four years. The Santa Rita 120 Local Hero of the Year competition is run by the premium Chilean winemakers to find local heroes who make a real difference in their local community, such as a hard working volunteer who makes things happen or an inspirational individual who always seems to put others before themselves. The campaign is a global initiative run in a number of countries and this is the second year it has taken place in Ireland.
300 YEARS OF EXPERTISE IN EVERY DROP
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March11Dairy
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The Dairy Best Ireland’s dairy category has proved relatively recessionproof, with the market estimated to be growing at 4%.
Ireland’s
dairy industry remains one of the staples of the grocery sector, and has proved relatively robust in the face of recession. Products like milk, cream, cheese and yogurt are real consumer favourites and thus have survived where other sectors have suffered from consumer belt-tightening. According to the latest report into the sector from Mintel, the Irish dairy market has grown by 4% in value sales over the last five years to reach an estimated €1.4 billion in 2010, despite the impact of heavy promotional activity and trading down over 2009 into 2010. Health is both the biggest asset and liability for the Irish dairy industry, according to Mintel, with low-fat and functional dairy products gaining market share, but negative press on saturated fats deterring some consumers. While fluctuating global milk prices are an ongoing concern, the outlook for the Irish dairy market is broadly positive, with major investment in both generic marketing and company infrastructure boosting prospects, while the cheese and yogurt sub-categories are ripe for expansion. The National Dairy Council have been very active in promoting Irish dairy products to consumers. A new animated carton of milk is the latest addition to the NDC’s advertising campaign to build support for the ‘Farmed in the Republic of Ireland’ packaging mark on milk and cream. The creation of the NDC’s carton character will extend and complement a campaign already well publicised by rugby giant Paul O’Connell, with three new ‘cartoon’ ads running in rotation across all national and satellite television stations and also supported by national print media advertising. 32
The NDC mark can only appear under licence on milk and cream which has been both farmed and processed in the Republic of Ireland. This gives consumers the assurance that they are supporting 4,676 local jobs in dairy co-operatives Helen Brophy, Chief Executive, and Dominic and on dairy farms, when Cronin, Chairman of the National Dairy Council, they buy milk or cream are pictured with the NDC’s new animated carton which has the mark on the character, canvassing at the Dáil to encourage support for local dairy farmers and local dairy jobs. pack. Helen Brophy, Chief Brophy. “We have been very encourExecutive of the National aged by the positive research results Dairy Council, says that the climate related to the campaign, which tells is right for retailers to show their supus that we are on strategy in relation port for local dairy jobs by stocking to how we have been promoting the and promoting trade mark licensed mark, but which also tells us that the products: “The new ads have been mark has come to mean something developed in response to research real in the hearts of consumers.” undertaken in October 2010 and are intended to keep the need to support local jobs ‘front of mind’ for consumers, Connacht Gold whilst bringing the focus of the mesConnacht Gold is now the fastest sage to the point of purchase for congrowing brand in the yellow fats sumers. The extended campaign will category, growing + 23.7% in value also highlight that milk is a natural, and 21.9% in volume (Source: fresh product.” ACNielsen Scantrack, MAT, The NDC mark is now displayed December 2010) and is the now the under licence on packaging for some 340 milk and cream products - cream and whole milk, skimmed milk, semi-skimmed milk, buttermilk, lactose free milk, flavoured milk or fortified milk. It appears in the Republic of Ireland on products ranging from brand leaders to own label products. “We believe the NDC mark empowers consumers in the Republic of Ireland to make purConnacht Gold’s range of Low Fat, Softer and chases based on being informed Spreadable butters are each driving growth about the origin of the milk or as consumers look for more natural products cream they are buying,” says Helen with real taste and flavour.
March11Dairy
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seventh largest brand. Connacht Gold’s range of Low Fat, Softer and Spreadable butters are each driving growth as consumers look for more natural products with real taste and flavour. Connacht Cold Low Fat Butter is a unique low fat spreadable butter, with only nineteen calories per serving. Connacht Gold Low Fat Butter is made only with cream and skim milk protein and contains no vegetable oils. It is also free from artificial flavourings, emulsifiers, stabilisers or colourings. Although it has only half the fat of ordinary butter, it is high in protein, low in salt, fortified with vitamins A, D and E and spreads straight from the fridge and has won a number of awards. The company also carries a range of 100g butter products, including Pure Irish Creamery Butter; Pure Irish Creamery Butter - Salt Free; Pure Irish Creamery Butter - Garlic & Herb; and Certified Organic Butter. Their range of 100% premium Irish Butter Sauces contains no added vegetable oils or transfatty acids and are suitable for vegetarians. Connacht Gold is the largest supplier of fresh milk and cream products in the Connacht region, and their large range includes Whole Milk, Low Fat Milk, Skimmed Milk, vitamin enriched V+ Milk, Buttermilk and Fresh Cream. The company also carries an extensive range of cheese, including Connacht Gold Red Cheddar Block 200g; Connacht Gold White Cheddar Block 200g; Connacht Gold Mature Red Cheddar 200g; Connacht Gold Mature Mild White 200g; Connacht Gold Mild Red 400g; Connacht Gold Cheese Singles in 10’s and 20’s; Connacht Gold Red Cheddar 400g and Connacht Gold Low Fat Cheese 200g. Their extensive yogurt portfolio includes the Irish Yogurts brand, whose portfolio includes Irish Yogurt Creamy Fraiche, Irish Yogurt Fruity BioActive, Irish Yogurt Creamy Probiotic, and Greek Yogurt. Indeed, Connacht Gold’s savoury range of flavoured sauces, garlic and herb and chocolate are also delivering on category growth. Connacht Gold will continue to invest in its range of products to drive 34
consumer value and recruit new consumers to the product range.
Glanbia Consumer Foods Avonmore Cheese is the number one grated brand on the market with 18% share (Source: ACNielsen, MAT, Only the best cheddar is selected for their Block, Sliced January 2010). With and Grated variants for that perfect Kilmeaden taste. five different variants to choose from, it’s no unique taste, thanks to the craftswonder Avonmore Grated Cheese manship and care that goes into each is a family favourite among Irish block. Made from a unique recipe and consumers. given all the time it needs to reach Also available in handy sliced forperfect maturity, only the best chedmats, Avonmore cheese is convenient dar is selected for their Block, Sliced for everyday usage occasions for all and Grated variants for that perfect the family. Avonmore Cheese Slices Kilmeaden taste. taste great in sandwiches for school Kilmeaden Grated Cheddar has lunch boxes, on ciabattas at work, or a firm texture with an aromatic, rich melted in tasty toasties in the evening. and distinctive flavour, making it ideAvonmore Grated packs are peral for enhancing pasta dishes, freshly fect for pasta dishes, baked potatoes, baked potatoes and everyday dishes. salads or sandwiches. All packs Kilmeaden Hand Cut Slices are include recipe ideas, so rustling up cut straight from the block and are a healthy nutritious meal for all the ideal for sandwiches, as lunchbox family is easy with Avonmore cheese. snacks, part of a cheese board or on All SKUs in the Avonmore range their own as a delectable complement are resealable for convenience and to wine. freshness. The Avonmore brand is The Kilmeaden brand is fully supsupported all year long with high-proported throughout the year both above file TV, print media and sponsorship and below the line and is regularly on campaigns – one of the best known air with ‘The Fillet of Cheddar’ execuis Avonmore’s sponsorship of RTE’s tion. All communication focuses on Weatherline. the care, craftsmanship and expertise Also from Glanbia, multi-awardthat go into ‘The Fillet of Cheddar’. wining Kilmeaden Cheddar is the Kilmeaden is the nation’s favourite nation’s favourite Cheddar block with natural cheddar block and is the 13% share of the market (Source: number one branded player in the ACNielsen, Total Scantrack inc grocery market (Source: ACNielsen, Discounters, MAT, January 2010). Total Scantrack inc Discounters, MAT Kilmeaden is renowned throughout January 2010). Ireland for its superior quality and
With five different variants to choose from, Avonmore Grated Cheese is a family favourite among Irish consumers.
March11Dairy
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the value-added sector make-over, which aims to bring fun, that is driving growth freshness and femininity to the Irish within milk – growth dairy category. that is being led LowLow by Avonmore’s is a powerSuper Milk and house brand Slimline brands. within dairy, The success claiming the of Fresh Milk number one is mirrored by branded SKU strong performin the standance across all ard health of Avonmore spreads cateThe continued success of the Avonmore milk brand is gory, LowLow attributed to a commitment to innovation and investment Milk’s products, particularly Super Original 500g, in highly visible national marketing campaigns. Milk – brand and is also leader in the fortified milk sector the top sellAvonmore Milk, from Glanbia with 93% volume share (Source: ing healthy Consumer Foods, continues to be ACNielsen, Total Scantrack, cheese brand Ireland’s favourite milk at breakfast LowLow is starting 2011 with MAT, Oct 31, 2010). time, with a 29% value share (Source: a fresh new look, which aims in the natural cheese categoACNielsen, Total Scantrack, MAT, to bring fun, freshness and femininity to the Irish dairy ry (Source: AC Oct 31, 2010). The continued sucKerry Foods category. Nielsen MAT cess of the Avonmore milk brand is LowLow is starting 2011 with 52 Weeks to attributed to a commitment to innovaa fresh new look. The healthier December 2010), making it a must tion and investment in highly visible dairy brand is kick-starting 2011 stock brand. national marketing campaigns, led by with a LowLow offers a unique proposithe flagship sponsorship of Weathertion across the butter spreads and Line across all three terrescheese categories as it delivers great trial channels. taste with at least one third less fat! Avonmore has a proven In surveys, three out of four people track record in driving value agreed that LowLow butter spreads and growth within the milk and cheese taste as good as their category through product and full fat competitors (Source: B&A package innovation such as Research, November 2009). the Avonmore Easypour Jug 2011 promises to be an action and Avonmore Lactose Free packed and exciting year for the Milk. By recognising the conLowLow brand. Kerry Foods are sumer trend towards health and investing in an extensive marketing wellness, Avonmore has develLowLow is a power-house brand within dairy, claiming the number one branded campaign for the dairy brand this oped a milk portfolio that offers low SKU in the standard health spreads year, which began with the LowLow fat, fortified, skimmed and specialty category with LowLow Original 500g. butter spreads relaunch in February. options. Avonmore believes that it is
Flora Kinects with Xbox 360 FLORA has announced an exiting new initiative in its campaign to make Ireland’s hearts healthier. To encourage families to make healthy decisions in their diet and lifestyle, Flora is offering shoppers the chance to win one of the latest full body gaming consoles from Xbox in an on-pack promotion which runs until the end of April. The exciting prize packs will contain the highly sought after Kinect Sensor, Xbox 360 and Kinect Adventures game. Each time a consumer buys a pack of Flora Original, Light or Buttery (500g/1kg), they will have the chance to pick up a golden ticket and win one of 750 Kinect prize packages on offer across Ireland and the UK. Flora has teamed up with former Olympic swimmer and TV presenter, Sharron Davies (pictured) to promote this campaign, which will be supported by a heavyweight communications plan, including TV, PR, online and in-store activity. Niamh Lennon, Brand Manager, Flora, says, “We are delighted to team up with Kinect for Xbox 360 in our bid to make Irish hearts healthier. We understand that healthy eating and exercise can feel like a chore after long days in the office and school but the easy to use Kinect is a great way to get the whole family off the couch and active, whilst enjoying heart healthy Flora recipes. This is a new and exciting partnership for Flora and one that we’re confident our customers will love!” Visit www.florahearts.ie for further information. 35
March11
Fairtrade
Fairtrade Business is Booming Contrary to what might be expected during the recession, Fairtrade sales continue to grow in Ireland. With the recent Fairtrade Fortnight highlighting the trend.
In
2010, consumer spending on Fairtrade certified products grew by an impressive 17%, from €118m in 2009 to €138m in 2010. Indeed, Ireland now has one of the highest per capita spends on Fairtrade certified products anywhere in the world and this growth looks set to continue throughout 2011. “It’s good to see that people in Ireland continue to support initiatives like Fairtrade,” noted Peter Gaynor, Executive Director with Fairtrade Mark Ireland. “Volunteer groups all around the country have committed their time over many years and we are delighted with how sales are holding up in the teeth of the recession.” Fairtrade Fortnight has just finished (February 28 – March 13), which saw a host of events taking place throughout the country, including the Fairtrade Chocolate Wagon touring the country, as well as visits by Ghanaian cocoa farmers, Isaac Baidoo and Stephen Boadi, and Miguel Mateo, a member of a Fairtrade Coffee Co-op in Guatemala. Ireland has the highest number of Fairtrade Towns per capita of any country in the world. There are now 48 officially recognised Fairtrade Towns and Cities, with Donegal and Carrick-on-Shannon the latest to be recognised, while 30 more towns are currently seeking Fairtrade Town status.
Pictured at the announcement of the Fairtrade partnership between MACE and Bewley’s are Kevin Barry, Regional Sales Manager, Bewley’s; Willie O’Byrne, Managing Director of BWG Foods; Patrick Bewley of Bewley’s; and Peter Gaynor, Executive Director with Fairtrade Mark Ireland 36
It seems that more and more Irish consumers are turning on to Fairtrade products. In recent months, the Insomnia Coffee Company has announced the conversion of all its hot chocolate drinks to Fairtrade, while the Java Republic Coffee Company have seen growth of 7% in their Fairtrade coffee sales.
MACE/Bewley’s Fairtrade Partnership Perhaps the biggest Fairtrade news of the year so far, however, is MACE’s announcement that it has signed a Fairtrade partnership with Bewley’s, which will see the sale of two million cups of Bewley’s Fairtrade Coffee in 120 MACE retail outlets nationwide. MACE is using its coffee buying power together with Bewley’s and Fairtrade to underpin a sustainable future for coffee producing communities in South and Central America. The announcement by MACE has been instrumental in Bewley’s signing a new $2.1m three year Fairtrade coffee supply contract with the Soppexcca Farmers Co-operative of Jinotega in Nicaragua. With this new deal, MACE customers nationwide will now enjoy over 2m cups of Fairtrade certified coffee sourced from Soppexcca, in addition to Bewley’s other ethical supply arrangements in Nicaragua and Central America. “As a company focused on community service, we’re really pleased to be working with Bewley’s and Fairtrade to make an important difference for coffee farmers,” stressed Willie O’Byrne, Managing Director of BWG Foods. “We know our customers will enjoy the taste and high quality of the coffees we’re serving through our Fairtrade partnership with Bewley’s. We look forward to growing our purchases of Fairtrade certified coffees in the years ahead. “Through this initiative, we’re happy that we’re supporting ethical coffee suppliers and communities in developing countries. This includes the establishment of direct links with coffee farmers and the payment of forward prices that guarantee a premium in return for high quality produce, social responsibility and environmentally sustainable production practices.”
Making a Difference Peter Gaynor, Executive Director with Fairtrade Mark Ireland, said, “It’s more important than ever that we have
March11Fairtrade
good examples like this of Irish companies supporting people in developing countries. MACE and Bewley’s have willing and committed coffee suppliers in Nicaragua and elsewhere and this Fairtrade deal will make a significant difference for years to come.” Soppexcca particularly supports the involvement of women in society and the economy. In a further boost, Bewley’s also presented the co-oper-
ative with a bank draft of $10,000 on behalf of customers at Bewley’s Grafton Street, who signed their support for Fairtrade on placards last year. The donation will be used by Soppexcca to provide more appropriate changing facilities for women working at the co-operative’s coffee milling plant in Jinotega. This project was first identified by Fairtrade Mark Ireland’s executive in Nicaragua, Kieran Durnien who brought it forward to Bewley’s.
Leading By Example
Willie O’Byrne, Managing Director of BWG Foods and Patrick Bewley of Bewley’s, celebrate the Fairtrade partnership between the two companies.
Bewley’s has a long standing policy of direct partnership with coffee growers, including co-operatives like Soppexcca. The company pioneered the introduction of Fairtrade certified coffee to Ireland in 1996 and is today the largest supplier of Fairtrade coffees, supplying many of Ireland’s leading foodservice and retail operators with their requirements.
About Fairtrade Mark Ireland FAIRTRADE Mark Ireland was established in 1992 to promote justice in trade between Irish consumers and producers and workers in developing countries. Fairtrade products ensure the producer receives a fair and stable price for their products. The first two tonnes of Fairtrade coffee beans were imported into Ireland in November 1996. This increased to over 667 tonnes in 2010. “MACE is leading by example,” said Patrick Bewley. “I think it is excellent that two well known Irish companies like ourselves can work together to achieve such a powerful effect for primary coffee producers in Nicaragua. The certainty of a directly established three year contract allows coffee producing communities to sustain their livelihoods and to plan effectively for their future. This is more than just a supply deal, it’s a social contract. The outcome is high quality for MACE customers in Ireland and fair deals for coffee producers in Nicaragua.”
New Natural Food Show for London LONDON
Olympia’s spectacular Grand Hall is set to be transformed into a vibrant showcase of the very best in natural and organic food and drink when the newly launched Natural Food Show opens its doors to thousands of industry food buyers on April 3 & 4. Reflecting growing consumer demand for healthier, more sustainably produced food and drink, The Natural Food Show – the new name for the food and drink section at Natural & Organic Products Europe trade show – aims to showcase the sumptuous diversity that lies at the heart of the natural and organic movement.
Mass Market Appeal “There has been a huge increase in the understanding of the benefits of natural and organic food, including sustainability, the environment, health and animal welfare,” commented
Carsten Holm, Managing Director of the show’s organiser, Diversified Business Communications UK. “As a result, organic has moved from being essentially a specialist niche product, to having a much broader mass-market appeal and relevance. Following feedback from key brands and buyers, we concluded that the show name should change to reflect this change and to enable the show to evolve and appeal to a broader spectrum of buyers from both the UK and abroad. It’s very exciting and we have had a fantastic reaction from everyone in the industry”.
speciality foods from producers all around the world. Hundreds of new launches are timed specifically to coincide with the event, and the muchpublicised New Product Showcase is one of the most popular areas of the show. Retailers seeking differentiation will find an eclectic mix of products from smaller artisan producers plus many big name brands in the show’s Fairtrade Trail, Vegetarian Trail and the popular Soil Association Marketplace, which promotes local delicacies from innovative new start-ups. For further information, visit www.naturalproducts.co.uk.
New Product Launches As the only dedicated trade event for natural and organic products in the UK, Natural & Organic Products Europe has built a reputation for being the place to source the widest choice of natural, organic, biodynamic, Fairtrade, free from, artisan and 37
March11Finance
A Receivership In All But Name A ‘dry receivership’ can afford a distressed company all the benefits of receivership with none of the publicity, according to Brendan O’Donoghue from Russell Brennan Keane.
When
is a receivership not a receivership? It’s not a joke, and companies requiring corporate recovery methodologies will rarely find the process funny, but there are occasions when distressed businesses can benefit from the advantages of the receivership process without having to go through the formal process, thanks to a process known as ‘dry receivership’ which affords almost all of the benefits with none of the publicity. “A dry receivership is a receivership in all but name,” explained Brendan O’Donoghue, Restructuring & Insolvency Partner with leading business advisory and chartered accountancy firm, Russell 38
Brennan Keane. “The bank doesn’t formally invoke the process, no statutory notices are published: rather it engages the services of an experienced corporate recovery team with the full co-operation of the bank’s customers, with the intention of maximising the realisation of the customer’s assets.” Obviously, such processes can only work with a high degree of input from the ‘client’ company. But in many cases, the distressed company is only too willing to engage with the recovery firm, for a variety of reasons. For example, a construction company may have completed a number of houses in a scheme, but has encountered difficulties in selling
and completing the development. There may be 30 houses yet to be completed /sold, and prospective purchasers will be naturally nervous about the company’s ability to finish the process. Mortgage providers will have their own concerns, and hence the whole process of selling the houses grinds to a halt. The last thing that the developer wants is a fire sale, so instead it will work as if it is trading normally, albeit under the aegis of a corporate recovery practitioner. “Consider the process in simple terms of house prices,” said O’Donoghue. “If there is a receivership sale, people immediately expect that there are going to be bargains. But where the company appears to be
March11Finance
trading normally, current market prices can be maintained on the basis that the developer is in a position to fulfil its contractual obligations. Of course, in this instance, it is not the developer who is in full control; but for the process to work, it will have to have significant on-the-ground input, such as engaging contractors and ostensibly dealing with day-today operations. At the same time, it is the bank which is releasing the funds, and everything is being monitored by the bank’s appointee, which is engaged in making sure that all the spend is being invested in to the development going forward, rather than on paying legacy debts.”
A Sensible Approach Many banks have taken a sensible approach when the businesses principals are willing to co-operate as both the bank and the business owner need to move on and taking practical steps sooner rather than later assists all parties. With all the news of formal insolvency processes such as receiverships, court appointed liquidators and (rarely now) examinerships, it might surprise people to hear that such informal arrangements are actually quite popular. But the reality is that the principals of distressed businesses are more and more coming around to the realisation that the values that they can get out of this process are better – and hence they are more prepared to co-operate.
The Issue of Stigma “There is also the issue of stigma, even in these times,” explained O’Donoghue. “With an informal process such as a dry receivership, there are no formal statutory notices published in the national press, which is a significant factor for some business owners who are conscious of their future ventures.” Obviously, no company wants to enter into a receivership, whether dry or not, but the process generally starts in the same way. A borrower is in trouble, and cannot meet repayments. Either it comes to the bank, or the bank asks for a meeting, and from these initial meetings the bank may suggest bringing somebody
in. And if the client is willing to work fully with the bank, then an informal process can be put in place (although it is important for the distressed company to realise that it is the bank who is master of the process, and not the debtor). Brendan O’Donoghue, Restructuring & Insolvency Partner with “The whole leading business advisory and chartered accountancy firm, Russell Brennan Keane. process needs complete buy-in from the bank’s client,” explained insolvency practitioner acts as a O’Donoghue. “But where there is facilitator, but is nevertheless aligned buy-in, the benefits for the company to the side of the secured creditor. If can be threefold, and not merely in the endgame is liquidation, there may terms of having the weight taken be further issues to deal with, such as off the directors’ shoulders. Firstly, personal guarantees or other pledged there is the publicity issue, which assets. still affects a lot of people, even today. But the reality is that the more Secondly, the costs to the debtor that is applied to any debts as a may be somewhat less, because the result of an informal process, the less process is not adversarial. And thirdly, that will be owed under any future where there is a residual debt, the processes. That can only be good news bank may look more favourably upon for business owners who have found any personal guarantees that might themselves in trading difficulties. be in place, assuming that there has been full and frank co-operation from the client during this process.”
The Liquidation Process While there are clear upsides for both the bank and for the client in terms of reduced costs, there nevertheless has to be a realisation from the distressed company that a dry receivership is generally a step prior to a process of liquidation. The
About RBK Russell Brennan Keane is one of Ireland’s leading business advisory and accountancy firms, with 50 years experience providing professional advisory services to a range of clients in the mid to large corporate market in Ireland, from offices in Dublin, Athlone and Roscommon. For further information, contact Brendan at bodonoghue@rbk.ie or Tel: 01 6440100.
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March11Shelf
Life
Shelf Life MAXOL and the Simon Communities in Ireland have announced details of a new partnership which recognises the Simon Community as the official Maxol Charity Partner for 2011. This partnership will see the inclusion of Simon Community collection boxes in over two hundred Maxol service stations throughout the island of Ireland, with every cent collected donated to the Simon Community operating in that same region. Plans are also underway to launch the ‘Maxol Carwash for Simon Promotion’ which will take place during the summer months and will see Simon Communities receive a percentage of revenue from selected carwash facilities in the Maxol network over the course of the campaign. Pictured are (l-r): Dr Mary Lee Rhodes, Chairperson of the Simon Communities of Ireland, and Tom Noonan, CEO, Maxol.
DECLINING consumer confidence, a multitude of purchasing options and the tough economic conditions mean that Irish retailers have to work harder now, more than ever, to understand their customer and deliver targeted and relevant messaging, which in turn will generate sales and build consumer loyalty. This was the key message delivered to more than 100 Irish retailers at an event hosted by Google and Experian Ireland, where delegates heard presentations on winning strategies and best practice in terms of digital marketing for the retail sector. Pictured are (l-r): Gary Flynn, Google’s Head of Online Sales - Retail & Tech, UK & Ireland; Robert Quirke, Business Manager, Cheetahmail Ireland, and David Fitzsimons, Chief Executive Officer, Retail Excellence Ireland. DR Catherine Geslain-Lanéelle, Executive Director, European Food Safety Authority, is pictured with Paul Kelly, Director, Food and Drink Industry Ireland (left) and Professor Alan Reilly, Chief Executive, Food Safety Authority of Ireland, at a briefing for Food and Drink Industry Ireland members in Dublin on 10th March 2011. The FDII represents the interests of the food, drink and non-food grocery manufacturers and suppliers. ITALIAN exhibitors will demonstrate their famed culinary expertise and capabilities as part of the world’s largest food and beverage trade fair, with the news that Italy will be Anuga’s partner country in 2011. From October 8-12, Italian exhibitors will not only present the huge variety of Italian food and beverages, but will also impressively demonstrate their expertise and capabilities to the international trade and the food service and catering sector. With roughly 6,500 suppliers from about 100 countries, Anuga 2011 will present a comprehensive, international spectrum of products for the trade and the food service and catering market. See www.anuga.com for more.
LIDL has a range of affordable quality gift ideas for this Mother’s Day (April 3), with a selection of flowers, with prices starting at just 2.99, as well as lots of great value wines, Champagnes, cavas and liqueurs, along with Lidl’s premium Belgian Chocolate Seashells, (pictured).
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THE Burren Smokehouse has announced details of an enviable sales agreement that will see the company begin to supply Smoked Irish Organic Salmon to Fortnum and Mason, one of the UK’s most prestigious gourmet food halls. The premium quality Irish seafood product is now available to consumers as part of Fortnum and Mason’s distinguished own brand range. COOLEY Distillery’s 15 Year Old Single Grain Whiskey, Greenore has been named World’s Best Single Grain Whiskey for the third consecutive year at the World Whiskies Awards in London. Jack Teeling, Managing Director of Cooley Distillery, commented: “Greenore is the only Irish Single Grain Whiskey in existence and its success is proof positive of Ireland’s ability to produce world class products which are marketable at home and overseas.”
GORTA, Ireland’s longest established overseas development agency, has launched ‘Soup for Life’, which takes place over National Soup Week, running from April 8-15. ‘Soup for Life’ encourages people to organise a fun event where they can share cooking tips and their favourite soup with family and friends or colleagues at work or in their local club, while raising awareness of the chronic issue of world hunger and giving much needed support to those in need. ‘Soup for Life’ also aims to find out Ireland’s Favourite Soup – a mission to find out exactly which type of soup has the S-Factor! See www.gorta.org/ soup for more.
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