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www.retailnews.ie|September 2011|Contents|3

Contents SHOP 2011 Is Go! SHOP 2011, the must-attend event in the food & drink, retail & hospitality calendar, takes place this month, from September 27-29, at the RDS Simmonscourt, Dublin. More than 140 exhibitors, including Retail News, will be on hand, showcasing the latest innovations and products that the market has to offer, while the event also includes valuable seminars, the best advice available and a host of awards, including the Product of the Show Awards! This year’s event is expected to welcome 4,000 buyers and decision makers, and you too can be there, thanks to your free ticket insert in this issue of Retail News. See our full event preview on Page 33 for more details. Also inside this issue, our Chief News Reporter, Pavel Barter writes on the results of a new shopping survey from Carat Ireland (Page 4); the continuing debate over the High Court’s ruling that JLC rates are unconstitutional (Page 6); the latest developments in the sale of Superquinn (also Page 6); and the Dublin District Court’s ruling, rejecting an Office of Tobacco Control attempt to prosecute cigarette manufacturer PJ Carroll (Page 7). We speak to former Tesco senior executive, Kieran O’Farrell, Head of Trading with ADM Londis, in a wideranging interview, covering topics as broad as the changing face of the Irish grocery sector, the continued drive for value and margin, the growth of private label and Londis’ strategy for future success (Page 20). Finally, Karen Meenan looks at the newspaper business in Ireland, following some high profile casualties, and advises on how to get the most from your newsagency (Page 24).

News

4 5

Special Report

38 Damian O’Reilly,

New Survey Reveals Shopping Habits. Retailer Boycott over Visa Card Costs; Fruitful Deal for Valeo.

20 Retail News Interview

20 Kieran O’Farrell,

JLC Issue Rumbles On; Competition Authority Stalls Superquinn Sale; Dunnes Comes Under Fire Over Packaging Charges.

Head of Trading with ADM Londis, discusses his role in developing Londis’ strategy, the growing importance of private label and the potential for increasing sales and margin in the current climate.

Lecturer in Management, DIT School of Retail Management, explains why retailers need to understand how their customers think, in the second of a series of articles.

Karen Meenan’s News Rack

24 Karen Meenan

Ireland Exceeds Recycling Targets; Red Tape Cuts to Save €5m Per Year; Court Stubs Out OTC Case.

Grocery Market Stagnates; SuperValu Launches €90m Price Cuts; NSAI Raises Standards.

examines the performance of the newspaper sector, and advises on how to ensure your newsagency is properly managed.

Kathleen Belton Editorial & Marketing Director

the decision to partner his Ballina store with Daybreak in May of this year, and is already reaping the benefits of increased sales from higher customer numbers.

33 SHOP 2011

33 Taking place from September 27-29, 2011, at the RDS Simmonscourt, Dublin, there are a whole assortment of reasons to visit SHOP 2011.

Managing Director: Fergus Farrell

Published by: Tara Publishing Co. Ltd.,

Editorial & Marketing Director: Kathleen Belton

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

Editor: John Walshe

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

Advertising: Kathleen Belton

kathleen@tarapublishingco.com

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

Pat Murray

pat@tarapublishingco.com

Subscription to Retail News: e95 plus VAT Email: aoife@tarapublishingco.com

Adrian Murphy

adrian@tarapublishingco.com

Origination by: Rooney Media Graphics

Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

examines the opportunities for wines from Spain, Portugal and Italy on the Irish market.

Shelf Life

62 All the latest news and gossip from the trade.

Regulars 12 Industry News 16 Drinks News 61 Market News Sectoral Reports

T A R A johnwalshe@tarapublishingco.com

56 Jean Smullen

Shop Profile

18 Eamonn Judge took

On The Vine

Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

29 Cereals 40 Confectionery 46 Hot Beverages 50 Fuels

4|Retail News|September 2011|www.retailnews.ie

News

New Survey Reveals Shopping Habits WOMEN take command of the grocery trolley in 2011, a new shopping survey has revealed. According to Carat Ireland, 65% of women surveyed make grocery shopping decisions, compared to 33% of men. A Carat spokesperson told Retail News that we still live in an age of gender-orientated marketing. “You only have to look at the content of most advertising on television, on print, and even in radio ads: using the typical housewife as part of advertising hasn’t gone away,” said Peter McPartlin, Strategic Director. “It’s part and parcel of the way in which creative agencies tend to direct grocery brand advertising. Without saying it directly, but through visual shorthand, this is aimed at you: the gatekeeper within the household.” Carat’s summer survey revealed a number of trends regarding in-store advertising. 68% of shoppers said that promotional end-of-aisle displays, on-shelf ads and free samples, were among the most noticeable formats of in-store advertising. Trolley ads, floor stickers, and entrance posters are less effective, they remarked. McPartlin believes these methods should not be discounted, as they work subliminally. “People never acknowledge they are influenced by advertising. A lot of people, when asked, say they saw advertisements for a product on television. Yet the ad may never have been on TV. This particular media [floor stickers, trolley ads, etc.] certainly has a role. The survey is more of an indication as to where people rank their influences...” Shoppers described instant and hasslefree promotions as the most effective sales techniques. ‘Buy one; get one free’ is the most influential of all, motivating 97% of shopping purchases. Money-off coupons are particularly effective amongst female shoppers and ‘instant price discounts’ are likely to motivate 95% of purchases.

The survey revealed that private label products are still popular. 86% of the 21% of shoppers who switched to private label brands in recent years continue to buy these products. Tea and alcohol brands have the highest consumer loyalty: tea brands merit 52% loyalty; alcohol commands 43%. “When you think of something like Barry’s Tea or Lyons Tea, they’ve been around for a long time,” said McPartlin.

“There have been a few pretender brands trying to take share, especially in the tea category, and have been beaten out of it. The traditional choice for people, for generations, has been Lyons and Barry’s, and it’s very difficult to shake that, no matter how much advertising you throw at it. The same applies to alcoholic drinks: whether Bulmers, Guinness or Carlsberg, it’s very hard for a new beer brand to break into those particular categories, because of the heritage and stock of brand equity.” On the other hand, Carat’s survey found that dairy products have the lowest customer loyalty. For further information or a presentation on this research, please contact Dael Wood at Carat Ireland on 01 2712100.

www.retailnews.ie|September 2011|Retail News|5

News

Retailer Boycott Over Visa Card Costs AN increasing amount of retailers are declining to process consumer credit card payments under certain amounts, Retail News can reveal. The reported costs in processing Visa debit cards, which are replacing Laser cards, are forcing retailers to decline card payments under €10 and often €20. Tara Buckley, Director General of RGDATA, told Retail News the situation is ironic, since the government wants a cashfree society and banks argue that taking the cash out of a business’ equation will reduce costs. “I was recently in a restaurant run by the state,” she told Retail News. “There were signs all over the place, saying ‘No Laser or Credit cards today’. I gather, from other people who have been at cafes and places run by state bodies, a lot of them are not taking cards. If they’re trying to push people to stop using cash, they’re making the absolute wrong decision in allowing merchant banks and providers to get away with this type of fee structure.” Vincent Jennings, Chief Executive of the Convenience Stores & Newsagents Association (CSNA), said he sympathised with retailers who put a minimum cap on credit card purchases. “It depends on what kind of deal they have

with the bank, but as far as I’m concerned it’s legitimate. Retailers are not fools: they know what their customers will and will not accept. Someone asking for a low value product, such as a lottery ticket or packet of cigarettes: if that costs the retailer money, the transaction doesn’t make sense.” The Visa debit card introduced a new set of charges, higher than Laser fees, argue RGDATA. Retailers traditionally paid a fixed charge per transaction; now, many are paying a percentage of their transaction. In some cases, this has raised the retailer’s cost of using the card to over 5000%. Una Dillon, Head of Card Services at the Irish Payment Services Organisation (IPSO), conceded this might be the case. “In terms of the merchant service charge, I have heard anecdotally that some acquiring processors are charging a percentage for debit card fees. If I was a retailer, I would be questioning that.” However, Dillon said Laser and Visa interchange fees are similar: the interchange fees for Visa are around 5c for transactions under €15, and 10c for transactions over that amount. Acquirers appear to be charging higher fees for transactions, she said. IPSO’s recommendation? Retailers should shop around the five

acquiring banks operating within Ireland: Elavon, AIB Merchant Services, WorldPay, Barclaycard, and HSBC. “They can shop around not just in Ireland but elsewhere,” added Dillon. “There’s no reason to stay with the same acquirers they have always been with. The pricing will be different, depending on the card acquirer.” No one appears to accept responsibility for the added fees. Domestic banks claim that Visa is imposing the new fee structure. Card issuers claim the processors are at fault. Other countries, including the US, have introduced regulations in terms of how much the banks

can charge. “The law stepped in,” explained Jennings. “Under a federal bill, there is a cap on the money the debit card providers can charge to retail. These things were running at an astronomical level. Now they are being charged on a unitary cost.” IPSO advised retailers not to put a minimum cap on credit card payments, saying to do so contravenes card acceptance rules, terms and conditions. “In the future, there’s an incentive for retailers to accept contactless cards [new debit card technology] for low value payments,” concluded Dillon. “There’s a reduced interchange on those transactions.”

Fruitful Deal for Valeo VALEO Foods are buying Jacob Fruitfield Group, in a deal expected to create a combined business with €300m annual turnover and a workforce of 500. A Valeo spokesperson told Retail News that the acquisition is likely to benefit retailers, due to stronger support for established brands. “We expect retailers to welcome the merger, as they will see it as creating a strong and committed player in the marketplace. These are two resilient companies with strong portfolios of trusted Irish produced brands.” Seamus Fitzpatrick, Chairman of Valeo Foods Group, added: “Given the tough trading environment, growing the business to allow investment behind our brands makes strong commercial sense. Our acquisition of Jacob Fruitfield is a significant step in what is likely to be an ongoing process of further consolidation in the Irish food sector. The enlarged Valeo that will emerge from this deal will be a more diversified and resilient Irish food company, well positioned for further growth.” Valeo’s portfolio includes Irish brands such as Erin, Odlums, Batchelors, Picnic and Sqeez. The Seamus Fitzpatrick, company was formed in 2010. Jacobs Fruitfield - the product of a merger between Fruitfield Foods Chairman of Valeo Foods and Irish Biscuits - hosts Jacob’s Biscuits, Chef sauces, Fruitfield jams and marmalades, and Scots Group. Clan confectionery.

6|Retail News|September 2011|www.retailnews.ie

News

Competition Authority Stalls Superquinn Sale SUPERQUINN suppliers have been left in the lurch after the Competition Authority delayed Musgrave’s acquisition of the supermarket chain. Musgrave had established a €10m fund for suppliers who were owed money by Superquinn. This was delayed until the Authority reaches a decision. A Musgrave spokesperson was optimistic that the fund will be released in due course. “Payments out of the fund will commence as soon as the purchase process, which is subject to Competition Authority approval, is complete,” the spokesperson told Retail News. “In the intervening period, Musgrave continues to work closely with suppliers and is providing them with the opportunity to access its SuperValu, Centra and Daybreak stores.” When Superquinn entered receivership in July, its debts totaled €50m. Half of this was paid; €20m remained outstanding. Smaller suppliers, such as co-ops not covered by insurance, are owed around €500,000. The Competition Authority’s investigation could last up to four months and is expected to hinge on regional competitive issues involved in the merger.

JLC Issue Rumbles On THE High Court may have deemed JLC’s unconstitutional, but grocery retailers are not free of wagesetting mechanisms just yet. David Fitzsimons, Chief Executive of Retail Excellence Ireland, the largest retail trade body in Ireland, criticised the Minister for Jobs, Enterprise and Innovation, for not

David Fitzsimons, Chief Executive of Retail Excellence Ireland.

scrapping JLC’s. “We’re going to see reintroduction of the JLC’s. JLC-light will be the best way of describing it,” he said in an interview with Retail News. Retail Ireland added that the government decision to bring back JLC’s was a missed opportunity to create jobs in the sector. “Retail is in crisis, with over 50,000 people having lost their jobs in the last three years. The decision to resuscitate the antiquated JLC system is totally unnecessary. Employees are protected by national minimum wage legislation, as well as over 40 pieces of employment legislation,” said Torlach Denihan, Retail Ireland Director. In July, the High Court ruled the JLC system unconstitutional. Rather than scrap the system, the minister announced a

series of reforms to make it “fairer, more competitive and more flexible”. Amongst the measures was the reduction of JLC’s from 13 to 6. For retailers, the most significant change is the scrapping of Sunday premiums. Current employees are still entitled to receive their original rates, continued Fitzsimons. “Every employee, prior to the outcome of the court case, had terms and conditions that applied to their contract. If I have a job in SuperValu and I was on a basic rate of €9.36, I’m still entitled to that, no matter what Richard Bruton or the court does. The only way that can reduce is through negotiation with my employer. It’s different for new employees.” Fitzsimons believes that over a 10-year period, the majority of retail employees

Torlach Denihan, Retail Ireland Director.

in the grocery sector will eventually be under the auspices of standard wage legislation. He also believes there will be less administrative burdens on retailers. “The record-keeping aspects of JLC’s will be diluted. Currently, you need to have records going back five or six years. There will be less of them and they’ll be streamlined. JLC’s are coming back, but in a different guise.”

Dunnes Comes Under Fire Over Packaging Charges DUNNES Stores has come under fire after it began charging customers for using fruit and vegetable bags to carry other groceries. The supermarket has imposed a 22c charge per bag in the Rathmines brand of its supermarket chain. The company is currently locked in a legal battle with the government over tax assessment in regard to the plastic bag levy.

www.retailnews.ie|September 2011|Retail News |7

News

Ireland Exceeds Recycling Targets 2010 saw Ireland once again exceed its 2011 EU used packaging recycling target by recycling and recovering over 626,000 tonnes or 65% of all glass, cardboard, plastic, metal and wood packaging. The figures were released by packaging recycling scheme Repak, which also reported a drop in the overall amount of used packaging recovered/ recycled of 2.8% and a 6.4% drop in Repak revenues, reflecting a more difficult economic environment for members and consumers. According to Repak, the 3.6% decline in the amount of packaging reported to the scheme by participating members as placed on the market reflects the overall decline in economic activity in Ireland, with less packaged items purchased. All of the different packaging materials recycled/recovered were down in 2010 by an average of 2.8% overall, with the exception of used plastic, which grew by 12%. The mix of materials collected were: Paper 46.1% (288,911 tonnes); Glass, 17.1% (106,629 tonnes); Wood 15.5% (96,783 tonnes); Plastic 14.2%

(89,130 tonnes); Steel 6.6% (41,292 tonnes); Aluminium 0.5% (3,356 tonnes). The increase in plastic recovered/recycled is linked to the 64% increase in RDF (refuse derived fuel). The majority of RDF (both paper and cardboard) was commercial waste that was unsuitable for traditional recycling due to level of contamination (e.g. meat juices on cardboard). RDF is currently used as a fuel substitute in companies such as Lagan Cement Kilns. According to the latest Eurostat figures, Ireland is ranked 8th amongst 27 European countries for packaging recycling. “Reflecting the general economy, last year was a challenging one for Repak, with decreasing fees, increased recycling costs, potential higher targets, lack of enforcement and extremely low landfill charges, all making recycling less attractive,” noted Dr Andrew Hetherington, CEO of Repak. “The successful packaging recovery rate of 65% also masks the fact that Repak recovered almost 117% of the used packaging our members

Dr Andrew Hetherington, CEO of Repak. put on the market. With greater participation and compliance through Repak, we could achieve higher recycling and recovery rates.” Discussing the challenges ahead, Dr Hetherington welcomed the announced review of Producer Responsibility Initiatives (PRI) in Ireland but urged that no decision be made on other areas, such as a possible packaging tax, in isolation of the completion of this review.

Red Tape Cuts to Save €5m Per Year

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

MINISTER for Jobs, Enterprise and Innovation, Richard Bruton TD has increased the number of businesses exempt from the requirement to hire external auditors to the maximum level permitted under EU law, a move that is expected to save Irish SMEs up to €5m per year. The Minister also announced that the Government at its last meeting approved his proposal to begin a process which will ensure that a reduction of 25% in the red tape imposed by Government on business can be achieved by the end of next year, resulting in savings of €500m to Irish businesses. The increase in the audit exemption thresholds will mean that companies with a turnover of less than €8.8m and a balance sheet of less than €4.4m will be exempt from the statutory requirement to engage independent external auditors to examine their accounts, if they have 50 or fewer employees. This represents a 20.5% increase from the current thresholds of €3.65 and €7.3m respectively. It is estimated that up to 2,500 small and medium-sized businesses will benefit from the move every year.

Court Stubs Out OTC Case DUBLIN District Court has rejected an Office of Tobacco Control (OTC) attempt to prosecute cigarette manufacturer PJ Carroll. Retailer groups have praised the decision, since they could have been prosecuted as part of the case. Instead, a dismissal of the charges, by Judge Bridget Reilly, sends a message that retailers involved were not contravening the law. The OTC had accused the manufacturer of breaching the tobacco sponsorship ban by allegedly encouraging shop staff to promote one of its cigarette brands. The company was alleged to have breached the ban due to a Pocket-a-Packet programme, whereby retailers confirmed the availability of Pall Mall cigarettes to adults who had already asked to purchase tobacco products. The ruling suggests that there is nothing to stop a retailer from having a factual conversation with an adult smoker who intends to purchase smoking products. Chloe Campen, Corporate Affairs Manager at P J Carroll, said: “We respect the Government’s right to control tobacco advertising but believe that retailers also have a right to communicate factual information to adult consumers. Buyers of a lawful product should be entitled to obtain factual information about competing products. “The decision is good news for customers and retailers,” she continued. “The advertising controls would be going too far if they were to prevent retailers from communicating factual information to adult customers who are already lawfully buying tobacco products.”

8|Retail News|September 2011|www.retailnews.ie

News

Grocery Market Stagnates THE latest grocery market figures from Kantar Worldpanel in Ireland, published for the 12 weeks ending August 7, 2011, show flat market performance as shoppers make further cuts to their spending. The latest data shows that the grocery market growth rate is now at 0.0%, when compared to the same period last year, with no value growth in the market for the first time in 12 months, despite continued price increases. Shoppers are now paying 4.4% more for general groceries compared to last year, while ambient groceries increased in price by over 9%. “Shoppers have tried to offset the price rises by seeking out more value products and sticking to tighter budgets this month,” explained David Berry, Commercial Director at Kantar Worldpanel. “As a result, we have seen more trading down to discount outlets and increased sales of cheaper products.” Two areas benefitting from this are retailer own brand labels and the discounters. Sales of own brand products have increased by 6%, while branded goods have fallen in value by 3%. “The discounters have posted an even stronger performance this month, with respective sales growth of 25% and 6% for Aldi and Lidl, pushing their combined market share up to 10.7%,” Berry noted. Elsewhere, Tesco continued to cement its position in the market with sales growth of 1.7%, increasing its share of the market by half a point to 27.9%. Tesco’s lead in the market over second placed Dunnes Stores now stretches to more than five percentage points, the largest gap ever posted. See www.kantarworldpanel.com for more information.

NSAI Raises Standards THE NSAI’s (National Standards Authority of Ireland) Annual Report 2010 highlights the concentration on standards and trade measurement enforcement by the state agency. During 2010, inspectors from NSAI’s Legal Metrology Services visited almost 4,000 traders’ premises and tested more than 17,000 measuring instruments such as supermarket weighing scales, fuel pumps and instruments where the charge or cost to consumers is dependent on accurate measurement. More than 9,000 trade measuring instruments at the point of use were tested to ensure they were accurate and compliant with legal requirements, while almost 8,000 fuel pumps at 1,300 service stations were also inspected. More than 2,000 warnings, which require corrective action such as minor adjustments or recalibration of equipment, were issued to traders: 1,400 of these were issued for fuel pumps. There were 13 prosecutions taken for non-compliance, where a trader did not take appropriate corrective action following a warning, with 10 of these resulting in conviction, all for non-compliant taxi meters.

SuperValu Launches €90m Price Cuts

SUPERVALU is to invest €90m in delivering price savings to Irish shoppers, reducing the price of the average weekly SuperValu shopping basket from €132 to €102, a saving of €30. The investment will consist of a significant range of price cuts right across the store, increased promotions and a half price Back-to-School offer. The price cuts are being delivered on the SuperValu lines that shoppers buy every day, such as cereals, pasta and teabags, and delivered deep price cuts. This alone is a €20m investment. Additionally, SuperValu has invested €5m of savings on half price Back-to-School offers, on products for school lunches such as bread, cheese, ham, appples, oranges and various drinks. SuperValu has also increased its investment in its deep cut special offers, such as half price promotions on legs of lamb or roast beef, which allows shoppers to purchase top quality Irish meat even in these difficult times. Over the past year, SuperValu has seen a 15% increase in demand for its promotional offers. The ‘Spend Less’ campaign was developed in response to extensive consumer research conducted by SuperValu to get their feedback on what products they need to save money on, while still being able to put quality, home-made, family meals on the table. The research showed that shoppers are looking to save money in a variety of ways. “SuperValu puts the customer at the heart of the business and we know that the grocery bill is the one household expenditure that they can actually control. Their weekly household income has reduced on average by €60 per week and our ‘Spend Less’ campaign is designed to help them save money on their weekly shop and put money back in their pockets,” explained Ray Kelly, Marketing Director, SuperValu. “We know that our strategy will work, as it has been developed by listening closely to our shoppers.”

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10|Retail News||September 2011|www.retailnews.ie

Industry News Tipperary Water Cycling Team Gear Up for Sean Kelly Tour

SUNDAY, August 28 saw the fourth Sean Kelly Tour of Waterford take place. The tour has grown from strength to strength since 2007 and this year, over 4,500 cyclists descended on Waterford from all over Ireland, the UK and Europe, including the 19-strong Tipperary Water cycling team. Tipperary Water have been the official mineral water sponsor since the Sean Kelly Tour was established. Pictured at the launch are Marie Cooney, Director, Tipperary Water, with Sean Kelly, and Peter Cooney, Tipperary Water.

€5.5m SuperValu Opens in Mountmellick SUPERVALU has opened a new store at Mountmellick, County Laois. The 1,486 square metre store, owned by SuperValu retailer Emmett McConville, cost €5.5m to develop and has created 70 new jobs within the local community. McConville’s SuperValu will have a strong emphasis on supporting Irish suppliers and stocking Irish-made produce, with 75% of all goods available in the store either produced or sourced in Ireland. Additionally, the store will sell only 100% Irish meat and poultry, which has been born, bred and reared in Ireland. “The store represents a large investment in Mountmellick and I look forward to trading here for many years to come and to the store becoming an integral part of the local community,” noted store owner Emmett McConville. Pictured are Amy Grehan and Caolan McConville, Fruit and Veg Manager, at the opening of the new store.

SPAR Sponsors Kitchen Hero FOLLOWING its hugely successful launch in May, Kitchen Hero is back this month with seven more episodes of the popular RTÉ cookery programme, presented by young cook Donal Skehan, and sponsored by SPAR. Donal continues to show novice cooks how to create really tasty dishes for a variety of occasions, including a BBQ, a romantic dinner, a birthday party and Sunday lunch for the women who taught him how to cook (his mother and grandmother). Donal is pictured (centre) with producer David Hare (left) and Willie O’Byrne, MD, BWG Foods, operators of SPAR in Ireland.

Extension at Value Centre Letterkenny LETTERKENNY Value Centre, Co. Donegal’s only cash and carry business, has officially opened its new extension, marking the occasion with a celebration for local customers, staff and their family and friends. Owners, BWG Foods, made a significant investment in the expansion and complete refurbishment of the premises, which has increased in size by 8,000 square metres. “Our Letterkenny Value Centre is already a strong business, supported by a keen focus on value and quality service. The result of our substantial investment in upgrading the facility is a better and more convenient shopping experience for our customers, not to mention an extended product offering and even better value,” said John Moane, MD of BWG Wholesale Division. Pictured at the official opening are (l-r): Gerry McMonagle, Letterkenny Town Mayor; Kieran Barron, Manager, Letterkenny Value Centre; Noel Mc Bride, Donegal County Mayor; and staff member Oisin McAvenney.

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Industry News Musgrave announces new Diploma in Fresh Food Management for 2011 MUSGRAVE Retail Partners Ireland recently launched its Diploma in Fresh Food Management, which is being run in conjunction with the Dublin Institute of Technology (DIT). The Diploma in Fresh Food Management is the first of its kind in Ireland and is being offered exclusively to SuperValu and Centra employees. The programme is a collaborative partnership between Dublin Institute of Technology, Musgrave and its retail partners. The course will develop students’ management experience and provide opportunities to expand their skills, while gaining real insight into the strategies and operations that play a vital role in the fresh food category. Pictured at the launch of the new Diploma in Fresh Food Management 2011 are Anna Doyle and Mo Kaddem.

IGBF Benefits from Teamwork Awards OVER 150 people took part in the first Irish Business Teamwork Awards, held recently at Carton House, Maynooth, Co. Kildare. Bringing together an eclectic mix of business owners and management, this unique team-building event was the brainchild of Barry Group MD, Jim Barry, with all proceeds from the event being donated to the Irish Grocer’s Benevolent Fund (IGBF) to provide financial assistance for those involved in the retail grocery trade who are experiencing financial hardship. Pictured are (l-r): Arthur McGauran, Sales Executive, Carton House; the winning NewsTalk team of Garry Blair, Aidan Walsh, Marcus Johnston and Jacqueline Malone; with Jim Barry, MD, Barry Group.

Bord Bia Food & Drink Industry Awards 2011 BORD Bia has launched its Food and Drink Industry Awards 2011. Through six distinct categories, the awards, in association with Rabobank, will recognise excellence in export development; branding; innovation; sustainability; entrepreneurship and success on the domestic market. “This year’s awards programme coincides with a period of strong and sustained growth in our food and drink exports and against a backdrop of expanding global demand,” noted Aidan Cotter, Chief Executive, Bord Bia, pictured at the launch with Kevin Knightly, CEO, Rabobank Ireland plc. According to Bord Bia, the strong growth in Irish food and drink exports, which saw values increase by 11% in 2010, is continuing in 2011, with exports set to grow by more than e600m for the second consecutive year. The Awards are open to all food and drink products manufactured in Ireland: see www.bordbia.ie/awards for further details.

APPOINTMENTS AT GALA GALA Retail Services have announced a number of key appointments. Tom Hardiman (right) has been appointed Fresh Food Manager, Cavan, Leinster & Waterford. Tom’s role includes managing and maintaining the current key relationships in his territories and establishing new opportunities for the Group. Tom will assist in ensuring his stores excel in day-to-day operational matters, through offering advice on best practice format, fresh food concepts, stock takes, category management and profitability. With 15 years’ experience in the multiple and convenience retail sectors, Tom was most recently employed as a Regional Manager in Gala. He was responsible for the South East region for the last three years. John Murphy (left) has been appointed as Regional Manager for the Southern Region, where he will work closely with Gala stores to ensure best practise, profitability and overall day-today operational success. In addition, John will be responsible for managing key customer accounts and maintaining customer relationships in the Southern region. Ray Burke (below right) has been appointed Regional Sales Manager (West). Ray has a strong background in the convenience retail sector in Galway, having previously been employed in managerial roles with SuperValu and a number of convenience group stores. Prior to his latest appointment, Ray was a Project Coordinator with Gala Retail Services for three years.

Information Notice for Tobacco Retailers

Introduction of Lower Ignition Propensity Cigarettes What?

Why?

When?

Lower Ignition Propensity (LIP) is a new tobacco regulation requiring cigarettes to comply with standards that increase the chances of a cigarette self-extinguishing when left at rest.

The new regulation has been introduced by the European Union and aims to reduce accidental ﬁres occurring as a result of burning cigarettes being left unattended.

The new standard will apply to all cigarettes across the European Union from 17th November 2011. LIP cigarettes have already been introduced in the USA, Canada, Australia and Finland.

How do LIP cigarettes work? The new cigarettes contain a speciﬁcally designed cigarette paper that includes narrow bands which in effect act as speed bumps. When smoked normally, the cigarettes should not self-extinguish, however they may self-extinguish if they are left at rest.

More air-ﬂow area

Less air-ﬂow area

The taste and flavour of cigarettes will not be affected by the change. Adult smokers should find the same taste and flavour they have always enjoyed. The regulation only applies to cigarettes and does not extend to roll your own or other smoking products.

What do tobacco retailers need to do? •

Tobacco companies are committed to managing the change as smoothly as possible and the companies will be in contact with customers in the coming months to provide speciﬁc details of how they are managing the transition to LIP cigarettes for their products.

•

www.itmac.ie

Tobacco retailers will need to give special attention to stock management and rotation of tobacco products in the weeks leading up to the 17th November. Your tobacco company representatives will be on hand to assist you. This is to ensure packets of non -LIP cigarettes are sold out before restocking the point of sale with the new LIP cigarettes.

14|Retail News||September 2011|www.retailnews.ie

Industry News Race is On for Musgrave Triathlon

IRISH Olympian John Treacy is pictured with Lucy Davis and Rhian Smith, calling for entrants for the 10th Musgrave Annual Triathlon which took place on Saturday, September 3, in Farran Woods, Co. Cork. The triathlon, which is now in its tenth year, has to date raised €2.9m in vital funds for the Irish Cancer Society, Our Lady’s Children’s Hospital, Crumlin, and Cork Cancer Research Centre. This year, it aims to hit a €3m target. The public can also donate funds to the cause by purchasing Lucky Bags in their local SuperValu or Centra stores. There are six different types to choose from, including Toy Story, Hello Kitty, Cars, Sponge Bob, Disney Princess and Disney characters. The Lucky Bags retail at €3.

Topaz Signs Distribution Deal with Q8Oils TOPAZ has announced a new distribution deal with Q8Oils worth almost €12.8m. Under the terms of the two-year deal, Topaz will sell Q8Oils lubricants in its forecourt stores, as well as to authorised distributors around the country. The range will include 520 synthetic, semi-synthetic and mineral-based engine oils for cars, motorcycles, vans, agricultural vehicles, trucks, lorries and industrial plants. Pictured with the new lubricant brand, Q8Oils, available at Topaz stations across the country, are Liam Mulcahy, Commercial Director with Topaz, and Sharon Butler, Commercial Business Development Manager, Topaz.

Irish Liqueur Brand Gets Boost DROMBEG, a new specialist Irish Liqueur, which is manufactured in Union Hall, West Cork, has secured a deal that will see the product listed at Ireland’s airport and car-ferry shops, broadening its appeal internationally as well as in the Irish market. This new development is seen as being very positive for what has been to date essentially a local company, and is a key part of their strategy to expand into the lucrative export market, with Drombeg also in discussions with distributors in the USA, UK, Canada and China. Captain Conor O’Donovan of Gaelic Helicopters; Lilabeth Horne, Head of Retail, Shannon and Cork Airports; and Captain John Grace of Fastnet Line Ferries are pictured at the announcement in Cork Airport.

Wolf Blass Launches 3D TV Giveaway WITH the Rugby World Cup kicking off this month, sports fans will be glued to their TVs and with this in mind, Wolf Blass are launching a neck collar promotion offering customers the chance to win fantastic prizes instantly. Using eye catching ‘3D’ neck tags, the promotion will run across the brand’s top two selling premium ranges, Yellow Label and Red Label. Among the range of goodies up for grabs are 3D TVs, luxury spa days, VIP sporting tickets, exclusive sports lessons and thousands of gift cards and MP3 download vouchers. To be in with a chance to win, consumers simply buy a neck-tagged bottle which contains a unique code, enter the code on-line to see if they have won a prize.

Former Fyffes Chairman Passes Away Retail News would like to pass its condolences to the family, friends and former colleagues of former Fyffes Chairman and CEO, Neil McCann. In a statement, the board of Fyffes paid tribute to Neil as “the driving force behind the creation and development of Fyffes, building it into one of the leading fresh produce companies in the world”. Having joined the business in the early 1950s, Neil spearheaded its growth through more than five decades, expanding it into the major international group that it is today. He enjoyed huge respect in the industry and will be sorely missed by all who knew him for his extraordinary vision and leadership, his passion for the business and his generosity and fairness to all.

... a great new range of products for its retailers In 1999, PostPoint became the ﬁrst company, not only in Ireland, but in Europe to generate a mobile top up voucher. Since then, innovation has been a cornerstone of the company’s success. This month, PostPoint launches a range of new products which provide PostPoint retailers with even more innovative solutions to offer their customers.

A Virtual Revolution One of the most exciting products to be added

to the PostPoint portfolio is the new One4all Online Gift Card. For no extra fee customers can shop online with their One4all Online Gift Card at selected online retail partners. According to Leanne Halpin, Advertising & Promotions Manager at the Gift Voucher Shop ‘The great thing about the One4all Online Gift Card is that it can also be used to buy a Virtual Visa Card which will give users the freedom to shop online anywhere in the world that accepts Virtual Visa.’ Like the existing One4all Gift Card, the new Online Gift Card can be presented as full or part payment in any of One4all’s 4,500 retail partners. So, no matter where the recipient lives or what their interests are, they are guaranteed to find something they really want with the One4all Online Gift Card, whether it’s through traditional retail stores or in the virtual marketplace! Barry Dignam, Head of Sales and Marketing at PostPoint explains ‘Irish customers have become savvier than ever in recent times, constantly looking for the best deals wherever they can find them, even if it means going online. With the One4all Online Gift Card, PostPoint retailers can now also benefit from the steady growth in online sales.’ In addition to the One4all Online Gift Card, PostPoint will launch three more great online payment solutions over the next few months. The first, Volt, is a prepaid MasterCard which enjoys all the functionality of a regular MasterCard but which doesn’t carry any risk of debt. This is due to launch in PostPoint outlets from November. Ukash and paysafe are two more online payment solutions launching this month through PostPoint. Both are aimed specifically at the online entertainment market and allow customers to pay cash for online activities.

According to Jill Anderson, New Product and Business Development Manager at PostPoint ‘Ukash and paysafe were chosen because they are quick, simple and safe. There is no need for a bank account, a credit card or for personal details to be exchanged. You simply need some cash to buy the vouchers from one of our retailers and you can then buy online! This is important for some customers as they may want to stay private when using money online.’ ‘Like the new One4all Online Card, all our new online payment solutions help customers control their spending,’ Barry Dignam notes. ‘Users can only spend up to the value on their respective card or voucher. In today’s climate, customers are looking for these types of budgeting products from retailers.’

Pointing the way forward The introduction of innovative solutions and products has been key in attracting and maintaining the support of the 2,400 Irish retailers who currently operate on the PostPoint network.

This year alone, PostPoint has boosted its BillPay facility to over 140 bills, the largest in the country, allowing customers to pay the majority of national and regional bills through their local PostPoint shop. ‘Our retailers know they can count on us to deliver innovation, both in terms of technology but also in terms of new product offerings which will drive footfall into their stores,’ concludes Barry Dignam. ‘We look forward to continuing to supply top level products, customer support and e-transaction solutions to all of our customers across the island of Ireland for many years to come.’ If you would like to talk to a PostPoint sales representative about these great services, please contact PostPoint on 1890 20 42 20 or visit

www.postpoint.ie.

16|Retail News|September 2011|www.retailnews.ie

Drinks News Moët & Chandon Launches New Isotherm MOËT & Chandon is delighted to announce the latest must-have summer item, the new Moët & Chandon Isotherm. The Isotherm is designed to keep your champagne cool and safe for travelling, so is perfect for al fresco dining. The Isotherm cooler bag has a ‘chic’ gold and black design, in keeping with the stylish Moët & Chandon signature colours. Kept at the perfect temperature for up to six hours, a previously chilled bottle of champagne will always be served refreshingly cool and sparkling – meaning every glass will be as good as the first. The Moët & Chandon Isotherm is available to buy from all leading off licenses and retails at €41.79.

Tullamore Dew Sponsor Pro Am TULLAMORE Dew is delighted to announce its sponsorship of the annual Pro Am at Tullamore golf club. The Pro Am is one of the premier events in the Irish region PGA Pro Am calendar. The event has entries from all over the country, with 42 professional and amateur teams competing. “We are delighted to come to Tullamore, the natural home of Tullamore Dew whiskey, to sponsor this event. We are looking forward to the professionals and their teams coming to compete here at Tullamore Golf Club. We couldn’t imagine anywhere better to stage our first Pro Am, than the beautiful surroundings of Tullamore,” noted Ann Marie Finucane of Findlater Wine and Spirit Group, distributors of Tullamore Dew, who is pictured with Donagh McArdle, the club’s golf professional.

Guinness Announces Arthur’s Day Celebrations GUINNESS fans all over the country are delighted with the news that Arthur’s Day makes a very welcome return on Thursday, September 22, celebrating Arthur Guinness and his remarkable legacy. This year’s Arthur’s Day will once again feature an incredible line-up of some the best international and Irish acts, performing in the intimate surroundings of select pubs across the island of Ireland. Acts taking part this year include Scissor Sisters, Stereophonics, Calvin Harris, Ash, Paloma Faith, Aloe Blacc and Ed Sheeran. Countries including Italy, Germany, France, Spain, Caribbean nations, Malaysia, Indonesia, Australia, Japan, Singapore and South Korea, will all join in the celebrations to mark the philanthropic legacy of Arthur Guinness. Pictured at the launch of this year’s Guinness Arthur’s Day in Whelan’s, Dublin, are artists Aloe Blacc and Paloma Faith.

Beamish Launches Genuine Irish Campaign

Cooley Continues

BEAMISH have launched their ‘Genuine Irish’ marketing campaign, which runs across radio and outdoor in Cork and in national and Cork print outlets. The Beamish ‘Genuine Irish’ campaign features a series of outdoor and print executions and radio spots asserting the genuine values and authentic heritage of Beamish Irish Stout – its ingredients, aroma, flavour and price. “The new campaign highlights the authenticity of Beamish and its positioning as a genuine Irish stout,” noted Heineken Stouts Brand Manager, Peter Murphy.

IWSC Gold Run

Irish Crews Wanted for Caribbean Adventure PICTURED with Captain Morgan’s giant message in a bottle, which washed up on Sandymount Strand, Dublin, recently, are Morganettes, Aoife Cogan and Suzanne McCabe. The message from Captain Morgan encourages people to enter The Captain’s Island Challenge, a buccaneering contest where a legendary Caribbean adventure and a €15,000 share of his bounty is at stake for a team of friends from Ireland. Captain Morgan, along with The Captain’s Island official reporter and stunning actress Mena Suvari, has left a video message on his Irish Facebook page, laying out the challenges that could see an Irish crew going to The Captain’s Island in the Caribbean from October 9-14 and battling it out against 13 other countries for a share of the prize.

COOLEY Distillery continued its phenomenal success at the International Wine & Spirits Competition (IWSC) by claiming a further eight IWSC Gold medals in London recently. Cooley’s medal haul included a record four Gold Medals for its Connemara Peated Single Malt Irish whiskey range, including two Best in Class honours, reaffirming its place as the most honoured Irish Single Malt of all time at International Spirits Competitions. Other repeat winners for Cooley at the IWSC included the Lockes 8 Yr Old Single Malt and Tyrconnell 10 Yr Old Madeira Finish Single Malt. Two recently launched products, the Kilbeggan 18 Yr Old Deluxe Blended Irish Whiskey and the Greenore 18 Yr Old Single Grain Irish Whiskey also both claimed Gold medals in their maiden IWSC competition.

HEINEKEN BRINGS THE PERFECT POUR HOME WITH THE DRAUGHTKEG COLLECTION DES: U L C N I N O I COLLECT HT KEG

KEN DRAUG 5 LITRE HEINEDRAUGHT GLASSES TWO 25OML ERS. 1 SKIMMER 10 COAST

Driving innovation in Ireland and around the world, Heineken presents the perfect tools to serve the perfect pour at home. Entertaining friends at home is growing in popularity and to meet the demands of savvy party hosts, Heineken introduces the 5L Draughtkeg Collection, complete with two 250ml glasses, skimmer and ten coasters.

To support the arrival of the new Draughtkeg Collection, Heineken promotional teams will be creating an interactive off trade experience with the Draughtkeg Challenge in supermarkets nationwide, to showcase the collection and challenge the public to pour the perfect pint.

The Draught Keg pours approximately 20 250ml glasses of smooth draught and its intelligent patented pressure system ensures fresh beer for 30 days after tapping, guaranteeing perfectly fresh pours even after guests have left.

The Draught Keg follows the roll-out of Heineken Served Extra Cold, the introduction of Star Serve and the launch of Heineken’s new engineered glass and countermounts in the on-trade, reinforcing Heineken’s commitment to the best experience for trade and consumers.

Heineken is Ireland’s number one draught lager and has been enjoyed around the world since 1873. FOR MORE INFORMATION VISIT WWW.HEINEKEN.IE/DRAUGHTKEG.

18|Retail News|September 2011|www.retailnews.ie

Shop Profile

Eamonn Judge took the decision to partner his Ballina store with Daybreak in May of this year, and is already reaping the benefits of increased sales from higher customer numbers. Colm Dolan, Daybreak Territory Manager, with Eamonn and Rowena Judge, store owners.

Daybreak Drives Ahead in Ballina Eamonn Judge’s family has owned and operated a forecourt on the Sligo Road, just outside Ballina, Co. Mayo, since 1964. In 1980, the forecourt added a small shop. 2001 saw Eamonn taking over the shop and joining with a symbol group partner. In May of this year, however, Eamonn decided it was time for a change. “Like every forecourt in Ireland, my shop had been affected by the downturn in the economy,” Eamonn explains. “I did not feel there was a way for me to grow trade in the shop as it was, and I began investigating other symbol groups in the market. When I first encountered the latest Daybreak concept in a forecourt, I got very excited because I had found a format that I felt would be perfect for my customers.” Eamonn felt that given the size of his store, allied to the changes in shopping habits he had witnessed in recent times, that the Daybreak image was perfectly suited to his needs: “I needed to be able to offer my customers excellent quality

food-to-go and top-up shopping that offered real value for money.”

Competitive Pricing

Backed by the significant buying power of Musgrave, the Daybreak cycle of promotional offerings means that Eamonn can offer his customers a very competitively priced basket of goods. Daybreak operates monthly national leaflet drops on behalf of all its retailers and Eamonn has been surprised at the number of new faces he has seen come to his shop since it re-opened under the Daybreak brand. “Myself and all the staff in the shop are very friendly with our customers,” he explains. “Indeed, we pride ourselves on our customer service. So when someone comes to the till, we know if they have been in the shop before and right from the moment that the promotional material from Daybreak started letting people in the area know what the shop was offering, we started seeing new customers.

“Between the expertise provided by Daybreak on top selling brands and my knowledge of what people around the area tend to purchase, I have been able to implement a strategy to target the demand around me that I was not able

www.retailnews.ie|September 2011|Retail News|19

Shop Profile

to do before joining Daybreak. Between the KVI offerings, round euro pricing and extremely strong POS material clearly promoting the value in the shop, customers find time after time that Judge’s Daybreak offers great products at great prices.” As well as the value offered on best selling brands, Eamonn is keen to support local suppliers. “Billy’s Bakery is a great example,” he notes. “It has a fantastic range of traditionally prepared fresh baked goods and my customers love to see goods on offer in my shop that are made in and around Ballina. On a personal level, I like to

support local businesses so we can try to get through this recession together.”

Increased Sales Across the Store

Since the revamp, sales are up across the store. The deli was an area that Eamonn had felt was under-utilised in the old shop. Now, however, round euro pricing, combined with top quality ingredients, best practice hygiene standards and well-trained, friendly staff, have driven sales, which are currently up year-on-year. Eamonn’s basket shop customers have a high frequency of visits to the shop over the course of a week, with a relatively small number of purchases being made on each visit. With value offers to maximise volume of sales, Eamonn maintains a rigorous attention to costs to allow him to generate the margin required for the shop to trade successfully. “The fact that Daybreak is the fastest growing symbol group in Ireland and that the group invests heavily in promotion of the brand benefits this shop greatly, because new and passing customers immediately recognise the name above my shop when they pass by,” he notes. “I also use the Retailer Zone online application from Daybreak to make my own promotional material. I can design and create materials that

are indistinguishable from anything produced by the group for a national campaign and I can do so at a fraction of the cost of having to hire a designer and printer to do it for me.”

IT Support

He also cites the back office and IT support provided by Daybreak, along with energy mapping programmes and regular advice on new developments in technology to minimise running costs, all of which help the store owner to save money day-to-day. “That means a better margin for me and my business and a healthy volume of trade because of the price I can offer my customers,” he enthuses. In closing, Eamonn, says, “With Daybreak, I have found a symbol group partner that offers me everything I need to keep growing my business. The people I work with in Daybreak are absolutely committed to making my business a success. While the group is large and growing quickly, the service I get is as personal and professional as the service I give to each and every customer that comes into my shop. Daybreak understands retail like I understand retail and that is why we work so successfully together, and I would like to take the opportunity to thank everyone in Daybreak that has worked so hard with me to make this project a success.”

Fact File Owner:

Eamonn Judge

Location:

Sligo Road, Ballina, Co Mayo

Size:

1,500 square feet

Number of Staff: 12 full time & part time Opening Hours: 07:00-22:00, Monday-Friday; 08:00-22:00,

Saturday; 09:00-22:00, Sunday.

20|Retail News|September 2011|www.retailnews.ie

Retail News Interview

Former Tesco senior executive Kieran O’Farrell is relishing the challenge of his new role as Head of Trading with ADM Londis. He discusses his role in developing Londis’ strategy, the growing importance of private label and the potential for increasing sales and margin in the current climate.

Londis scores on Value WITH ex-Tesco senior executive, Kieran O’Farrell, on board as Head of Trading at Londis, the Group’s ‘value’ credentials have come under serious scrutiny in the past few months, and they have come up shining, as Kieran himself will attest to. Retail News caught up with Kieran just a few months into the job to understand the motivation behind the move and what has attracted him to the wholesaling trade, in particular, the Londis group.

After so many years working for a large retail multiple, what attracted you to a wholesale role in Londis? Having spent most of my career in various roles with Tesco Ireland, I was open to a different challenge. When

the opportunity with Londis presented itself, it felt like the ideal fit in terms of being able to bring my trading experience to the wholesale trade. The Group’s solid credentials and a strong core base of loyal independent retailers means that there are many opportunities to build a market leading strategy within the wholesale trade.

Is there something about working with smaller independent retailers that appeals to you?

Absolutely. Smaller retailers are more nimble, in terms of being able to respond very quickly to the market. This brings dynamism to the business that can be very rewarding. They are intensely customer focused and

certainly with my experience of Londis retailers, they are an incredibly passionate and committed group. Working with Londis, I can see how the business is very focused on ensuring that it is the collective talent of the team at Group Support Office and each individual Londis retailer working together that drives the overall Group strategy.

Do you find the wholesale business more or less challenging than retail?

It is similarly challenging, but in a different way. It is certainly a more personal environment and we are more closely in tune with each retailer and their individual needs. Instead of pushing out centrally-set policies,

www.retailnews.ie|September 2011|Retail News|21

Retail News Interview our challenge is to positively influence retailers at a one-to-one level. This can be more challenging certainly, but infinitely more rewarding when we get commitment and buy-in from each retailer.

Would you say relationships are fundamentally important in your line of work?

Without doubt, relationships are important. Our aim is to have open, constructive relationships with all stakeholders, from each retailer to our supplier partners. We have very open, mutual relationships with our retailers, whose input and engagement with the business is very welcome. On the other side, we rely on our supplier partners to help build our strategies across specific categories and with whom we work closely to ensure our retailers get the best deal, the best range and the best support possible.

Can smaller retailers compete effectively with large multiples and discounters?

Londis retailers are competing. Our organic sales are 2% ahead, so certainly Londis retailers are competing very effectively with larger competitors in the market. We know we are competing equally as well on price and value as we’re bringing exceptional promotional offers to the market that are performing strongly. There’s no doubt that the market is

challenging and there are many players vying for the same spend, but smaller retailers have an agility that evades larger players. In addition, they can be much more consumerfocused and build real relationships within their local communities, not only with consumers but also with smaller, local suppliers who have a strong customer base and loyal following. Londis retailers can provide a genuine personal touch that is simply impossible for others to replicate.

Do the strategies of large multiples like Tesco pose a major challenge to you in your new role as Head of Trading with Londis?

We’re cognisant of their strategies within the market, but we’re focused on following our own path as well. At the end of the day, we are competing for the same customer, so there’s no doubt that we watch their movements closely and this keeps us focused and competitive in our offering. Our retailers are pushing a very strong KVI initiative, which sees us matching Tesco prices on some best-selling

“

There’s no doubt that the market is challenging and there are many players vying for the same spend, but smaller retailers have an agility that evades larger players. In addition, they can be much more consumer-focused and build real relationships within their local communities, not only with consumers but also with smaller, local suppliers who have a strong customer base and loyal following.

”

products within the market. However, we cannot afford to simply be reactive and we must drive our own business forward with promotional and value strategies across all product categories. The Group is committed to delivering value on the products our customers want to buy, whilst also balancing this with ensuring our retailers are achieving a sustainable margin across their business.

Do you believe the Irish consumer cares about price above all else?

We know that price is a key factor for consumers. The prevailing economic circumstances mean that each of us has less money and incomes have decreased across the board. Consumers are much more astute, aware of the prices on key staples and carefully shop around. Certainly, we see a big increase in the product bought on promotion in Londis stores. However, there are other factors which also come into play, such as the range in-store, availability of local and artisan products and the more personal relationship a customer might have with a retailer.

Do you believe it’s possible to expect any increase in gross margin in 2011?

As a Group, we’re committed to investing in our retailers’ business. We’re very much ‘owned by retailers for retailers’; the Group is not managed for the benefit of other institutional or private interests, and this means we can provide greater value to our members. We are focused on delivering a good balance of consumer offers and broader margin enhancers to our retailers’ business so that, on balance, their gross margin is protected. We are also committed to up-weighting activity

22|Retail News|September 2011|www.retailnews.ie

Retail News Interview and growing customer participation across traditionally higher margin categories, such as fresh food and deli, so that again, we are properly ‘managing’ our retailers’ margin mix. It’s a difficult one to balance, but we believe that as a Group, the scanning margin achievable by our retailers is one of the strongest in the sector.

How does Londis help the retailer’s bottom line?

We’re a very lean and efficient organisation and we’re always looking for a way of doing business which keeps costs down and which we can in turn, pass on to our retailers in the form of even lower prices. We have a very competitive rebate structure and are very transparent with regard to how each Londis retailer can maximise their return. We recently launched ISIS (Intelligent Systems Increase Sales), which is an intuitive tool giving Londis retailers full visibility on promotional lines and best sellers which they should stock. Retailers who engage with ISIS are ordering up to 21% more on promotion: hence, straightaway they are accessing value which they may otherwise have missed. ISIS ensures that our retailers have exactly the offering their consumers want, therefore maximising the return from every possible range in store. Our strategic procurement strategies, including our alliance with Nisa Today’s, also delivers real benefits to our retailers’ bottom line.

How important are Londis’ private label (PL) lines, for the Group and the Londis retailers?

They are very important to our offering in-store. Private Label products are

“

The customer is always right! We must always put the customer first and if we follow our customer, we are following the money. If we’re doing that, we cannot go too far wrong. in general much more competitive on price than branded products and we work closely with our key PL suppliers to build on and improve the range constantly. Our products have compared very favourably to those of multiple retailers when subjected to the scrutiny of national media, so we’re confident of our offering in terms of quality and price. In addition, we are not focused solely on ambient product and have recently launched some excellent fresh private label offerings. Our value Fruit & Veg range has been very well received by Londis retailers and our recently introduced poultry and fresh meat offerings are performing very well in-store. More and more customers are comfortable purchasing from Private Label ranges and it is a core part of our retailers’ offering and, hence, our focus as a Group.

What do you see, potentially, as your contribution to Londis strategy? My experience is closely aligned to our strategy of building Londis into a market leading grocery wholesaler and retailer. I will be working closely with a very determined trading team, our retailers and our suppliers to ensure that we are all focused on

”

delivering the best offering in terms of multiple-challenging value and an acceptable margin mix to Londis retailers.

Do you see any opportunities for the Londis Group which you would like to pursue?

We’re very focused on differentiated strategies for our supermarket and convenience offerings and this is a constantly evolving project for the Group. We are finely tuning our Londis PLUS offering to compete even more effectively with multiples, whilst tailoring a stronger offering for our convenience and forecourt stores. At a more corporate level, we are a wellcapitalised company with significant shareholder funds, so we are carefully reviewing growth opportunities as they present themselves. We believe we are in a better position than most, given how promptly we responded at the initial stages of the recession, in terms of dealing with potential credit risks. This means we are on a sure financial footing and are not distracted from our core objective of delivering what Londis retailers want.

What are the most valuable lessons you’ve learnt during your career in grocery retail?

The market is constantly changing, no more so than in the past two to three years. Any idea of permanency has been eroded and we all need to be agile and versatile in building our competitive offering. We need to appreciate the skills and specific knowledge of our retailer and supplier partners, with a focus on longer term strategic partnerships. Of course, most importantly, the customer is always right! We must always put the customer first and if we follow our customer, we are following the money. If we’re doing that, we cannot go too far wrong.

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24|Retail News|September 2011|www.retailnews.ie

Karen Meenan’s News Rack Karen Meenan examines the performance of the newspaper sector, and advises on how to ensure your newsagency is properly managed.

Read All About It! WHAT a crazy six months for publishers, wholesalers and retailers of newspapers! Two weeks into 2011, we had the collapse of Star on Sunday, an Irish newspaper which was distributed by Newspread. Credit must be paid to EM News, who seamlessly replaced this Sunday newspaper with Star on Sunday, a UK title, but who would have guessed that this Sunday Newspaper would cause such widespread losses for retailers nationwide? On the first week of circulation, 22,000 copies of Star on Sunday were returned to Newspread in error, causing huge money losses for those retail agents. It is now August and while most retailers have copped on to the fact that all EM News titles must be returned to EM News for full credit, some Irish newsagents are still returning Star on Sunday incorrectly to Newspread – 30 weeks later!

to cope with the demand because they interpret lack of returns as sellouts – not errors in returns – so your supply has been increased. And you still return the unsolds to the wrong wholesaler, but now you are returning 20 copies of unsolds, so now you are losing around €20 euro a week. But the wholesaler still interprets the lack of returns as sell-outs and supply is increased again and so you get more supply and you return more unsolds and lose more money… The end result:

this one title has the potential to have lost you around €600 since its launch. If you have just had a stock take result which made your eyes water, just examine this one title as a starting point and calculate how much money you lost on Star on Sunday alone. The reason for this is very simple, staff members are still very reliant on the ‘newspaper book’ and on January 1, 2011, there was a newspaper title called Star on Sunday which was distributed by Newspread and so that

Are You Losing Money Unnecessarily?

Suppose that retailer is you. Suppose in January you were returning five copies of these unsold titles each week at a cost of around a euro. You would have lost about €5 each week. But if the wholesaler didn’t receive any returns for a number of weeks, they would have increased supply

Sales of the Irish Daily Mail and The Irish Mail on Sunday have been growing steadily all year.

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26|Retail News|September 2011|www.retailnews.ie

Karen Meenan’s News Rack title would have been written in the ‘newspaper book’ as a Newspread title. When the Irish version was replaced with the UK version a week later, the information was not changed on the master list and so the error was compounded each and every week. Recall notes are widely used to return magazines, but not used as widely to return newspapers. There are two reasons for this. One is that Newspread do not produce a newspaper recall note: the recall is only available to view online and can be printed from the back office. Secondly, staff members just seem to be more comfortable with the manual system.

The End of The Sunday Tribune

The Sunday Tribune went into receivership in February and there was widespread criticism of the wraparound Irish Mail on Sunday newspaper which was designed to attract readers of The Sunday Tribune to their title. The marketing trick might have worked – sales of the Irish Daily Mail and The Irish Mail on Sunday have been growing steadily all year. In fact, sales of The Irish Mail on Sunday had just passed out sales of News of the World when the furore over phone tapping caused the sensational demise of this title after

Average Daily Newspaper Sales July 2011 July 2011

July 2010

The Irish Mail on Sunday Sunday Business Post Sunday Independent Sunday Tribune Sunday World Daily Star Sunday News of the World Sunday Mirror People

50,939

49,921

1,018

2.04

Irish Times

98,000

101,027

(3,027)

(3.00)

137,000

143,100

(6,100)

(4.26)

Irish Examiner

43,000

46,400

(3,400)

(7.33)

Daily Mirror

63,492

60,813

2,679

4.41

Star

86,562

95,619

(9,057)

(9.47)

Sun

80,052

87,469

(7,417)

(8.48)

Express

3,347

3,194

153

4.79

Daily Telegraph

3,155

3,068

2.84

Financial Times

3,473

3,509

(36)

(1.03)

Guardian

4,055

3,708

347

9.36

Independent

1,124

1,164

(40)

(3.44)

Times

2,342

2,826

(484)

(17.13)

577,261

601,818

(24,557)

(4.08)

Irish Independent

Daily Market Source: ABC

168 years. The final copy, edition number 8,674, had a 48-page souvenir pullout, and the profits for that historic final edition were donated to charity. The Sunday Tribune was largely viewed as the extra newspaper bought

July 2010

Year on Year Copy Difference

Year on Year % Difference

140,955

110,941

30,014

27.05

42,738

42,821

(83)

(0.19)

255,000

263,100

(8,100)

(3.08)

49,500

(49,500)

(100.00)

263,000

255,025

7,975

3.13

45,537

53,303

(7,766)

(14.57)

127,262

(127,262)

(100.00)

66,980

38,883

28,097

72.26

26,620

20,361

6,259

30.74

107,250

105,591

1,659

1.57

Sunday Express

4,732

4,547

185

4.07

Independent on Sunday

1,888

1,589

299

18.82

Observer

8,157

8,062

1.18

Sunday Telegraph

3,515

2,596

919

35.40

966,372

1,083,581

(117,209)

-10.82

Sunday Times

Sunday Market Source: ABC

Year on Year % Difference

Irish Daily Mail

Average Sunday Newspaper Sales July 2011 July 2011

Year on Year Copy Difference

along with the Sunday Independent or Sunday Times and when it ceased in February, those sales were not really replaced: customers just started to buy one title instead of two.

Fast-Changing Sector

The News of the World was a different story – this title had 12% of the market and a loyal readership. Irish Mail on Sunday has captured most of these sales – its market share is now around 14%. The People has picked up some

The Irish Sun sells over 80,000 copies per day.

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28|Retail News|September 2011|www.retailnews.ie

Karen Meenan’s News Rack new readers too, but The Sunday Independent remains in the top spot, with a circulation of around 250,000. The Sunday World has just had a very interesting launch – long associated with crime and crime prevention, this newspaper is working very closely with retailers to ‘name and shame’ those criminals caught on CCTV. This novel idea was borne from an over-the-counter theft which was The Sunday Times is increasing its caught on camera; circulation in Ireland. the photograph of the criminal was published in The Sunday World and an arrest was made. Independent Newspapers have announced the reduced number of days to return unsold copy; effective September 5. Previously, retailers had 10 days from the end of the week (Sunday) to return their Irish Independent, Sunday Independent and Evening Herald unsold copies. This has been reduced to four days from the close of the week to return unsolds of these titles.

Vogue Perle: Ireland’s First Demi-Slim Cigarette IRELAND’S first demi-slim cigarette is finally here. September 5th saw Ireland’s oldest tobacco company, P J Carroll, launch Vogue Perle, the new affordable premium cigarette from the House of Vogue. Vogue Perle comes in a premium pack, with elegant features designed in Paris, and is slightly smaller than normal cigarette packs. Vogue Perle is Ireland’s first demi-slim cigarette. The demislim cigarette is slightly longer and thinner than a normal king size cigarette, but delivers the same satisfying smoking experience. Therefore, Vogue Perle is the casual yet refined alternative to kingsize cigarettes. Launched nationally across all retail channels in two variants, Bronze and Menthe, both in a 7mg smooth format, Vogue Perle is competitively priced at €8.00 to offer quality at an affordable price point.

Business Health Check

Are you calculating how much money you have lost in rejected titles each week? We have audited several hundred stores at this stage and the most common losses in newsagency are around €6,000 per annum. If you would like a health check of your newsagency business, please email your EM News and The Irish Daily Star: Newspread account details to one of Ireland’s most karen.meenan@dailyprofit.ie. popular daily papers. The cost is €100 plus VAT, which is refundable if you become a Daily Profit client. For more details about the Daily Profit service, please visit our website, www.dailyprofit.ie, or ring Karen Meenan: (086) 6027711. IF you need help to grow sales and reduce losses you can contact Karen Meenan at The Daily Profit - ring 086 6027711 or email karen.meenan@dailyprofit.ie or visit our brand new website – www.thedailyprofit.biz

Aluminium & Steel rollershutters Steel Security & Fire doors Aluminium & Steel Shop fronts Rubber Crash Doors Insulated Sectional Doors High Speed Cold & Clean Room Doors Maintenance & Repair Department

www.retailnews.ie|September 2011|Retail News|29

Cereals

Long-Running

Cereal

With the highest per capita consumption levels in the world, Irish consumers’ love affair with cereals looks set to continue. health ally for women aged 35-plus and THE cereals category is a valuable Kellogg’s will expand its portfolio to address the one for the Irish retailer. Ireland’s per Kellogg’s have revealed plans for a taste needs of this audience. capita consumption levels of 7.7kg complete overhaul and re-launch of In addition to the launch of a tasty of cereals per year in 2010 is the their 90-year-old All Bran brand. new high fibre cluster cereal, All Bran highest in the world, illustrating how Under the plans, All Bran will be Golden Crunch, Kellogg’s Bran Flakes important the category is in Ireland. marketed as an everyday digestive and Sultana Bran will Despite the current economic move under the All Bran climate, Irish consumers are banner, alongside the extremely brand loyal when it original shred product. comes to cereal, according to the All Bran Golden latest report into the sector from Crunch, a deliciously light Euromonitor. The result: big and crunchy multi-grain brands like Kellogg’s Special K, cereal, oven-baked for a Kellogg’s Corn Flakes, Coco Pops, golden crunch, is being Rice Krispies, Crunchy Nut Corn positioned as a “taste” Flakes, Flahavan’s and Weetabix product in the portfolio remain hugely popular with Irish and Kellogg’s believe this consumers. new high fibre cereal Price remains a key consumer offering will also help bring concern and driver, however. The thousands of women into breakfast cereals category declined the brand. marginally in value but grew by 3% The range will be in volume terms in 2010, according supported by a €500,000 to Euromonitor, due to family packs multi-media campaign and special offer promotions focusing under a new marketing on volume sales, and the decline of strapline of ‘Feel All unit price. Bran New’ to give it a Both the penetration and per new feminine positioning capita consumption levels are as a breakfast solution already very high in Ireland, but to everyday digestive Euromonitor avow that value discomfort, to help women growth is achievable, and the cereals feel revitalised and ready environment is forecast to see a for the day ahead. constant value CAGR of 2% over Meanwhile, Kellogg’s 2010-2015 period. Volume is also have published the results likely to continue to grow, with a 4% Kellogg’s All Bran Golden Crunch is a deliciously light and of their 2011 Back to CAGR over the forecast period. crunchy multi-grain cereal, oven-baked for a golden crunch.

30|Retail News|September 2011|www.retailnews.ie

Cereals said they look forward to the new school term because it brings a return to routine and discipline for the family (87%), because they find it hard to keep the kids entertained during the summer months (49%), and because of the difficulty in arranging childcare during the summer (24%). 19% of parents admit that they rejoice in the return of ‘more freedom’ for themselves! Juliette Clarkin, Marketing Director, Kellogg’s, said: “Our research shows that most Irish parents recognise the importance of ensuring that their kids have a great Back to School experience and from the Kellogg’s Corn Flakes: a truly iconic cereals brand. research we have conducted, it’s clear that School survey, which found that 74% rather than stressing about of Irish children look forward to going Back to School, many back to school, while a staggering 83% parents and kids value of parents admit that they look forward the routine it brings to to September 1, when children are the household. It is also back in the classroom. Parents polled encouraging to see that 97% of parents make sure that their children get breakfast before they head out the door in the morning.” The Back to School period is undoubtedly a crucial time for the grocery retail trade. A habit-forming time, it marks the start of a new routine for many consumers and an opportunity for retailers. The breakfast cereals category has grown by 13% during the Back to School period over the past two years, Kellogg’s Rice Krispies, one of the most popular cereal with sales now worth brands in Ireland.

over €21m during the key AugustSeptember period. Over 10 tonnes of Kellogg’s kids’ cereals per day are sold during this time, representing a huge profit opportunity for retailers. To maximise this occasion, Kellogg’s is set to launch a massive through-the-line consumer campaign, entitled ‘Let’s Make Today Great’, which focuses on making the best of every day – not just the first day of school. The marketing campaign consists of TV, radio and in-store POS and a substantial trade promotional plan that aims to deliver added-value on the core range of Kellogg’s cereals and snack bars. Contact the Kellogg’s account team on (01) 8429100 to make sure your business makes the best of this great profit opportunity.

Flahavan’s

Flahavans, Ireland’s favourite porridge oat company, continue to drive development in the oats category, with their focus on quality and innovation.

Flahavan’s new Multi-Seed range is available in sachet, portable porridge pot and bag formats and combines Flahavan’s Porridge Oats with Sunflower, Flax, Pumpkin and Hemp seeds.

Flahavan’s have launched a delicious new Multi-Seed Porridge as part of their Quick Oats range to meet the evolving needs of consumers for a healthy breakfast. The new Multi-Seed range is available in sachet, portable porridge pot and bag formats and combines

www.retailnews.ie|September 2011|Retail News|31

Cereals Quick Oats porridge family, MultiSeed, will see the start of a number of high-impact, consumer focused activities, including national radio promotions and consumer engagement activities. Each element of the campaign will communicate the strength of the Irishness of the brand, as well as the value and health propositions of porridge. The company will also drive its on-line presence through its Facebook page and the launch of its new website.” Flahavan’s is Ireland’s favourite porridge and has a loyal Irish customer base, with over three million servings of Flahavan’s consumed nationwide each week.

Lifeforce

The Flahavan’s Quick Oats range, including new Multi-Seed Porridge, meets the evolving needs of consumers for a healthy breakfast.

Flahavan’s Porridge Oats with Sunflower, Flax, Pumpkin and Hemp seeds to provide an additional tasty and healthy boost to breakfast time. The new seeded range is a source of Omega 3 fatty acids, protein and fibre. Flahavan’s Multi-Seed Porridge contains no added salt, sugar or artificial flavourings, colourings or preservatives and is completely natural. Flahavan’s Quick Oats MultiSeed Sachets (10 x 40g) and Quick Oats Multi-Seed Portable Porridge Pots, which come in a 40g serving, have a crunchy texture that is simply delicious. Simple preparation in just three easy steps helps make a breakfast packed full of taste and goodness. Flahavan’s Quick Oat Sachets, which come with a reusable liquid measure, are ready in just two minutes, while Flahavan’s Multi-Seed Pot can be made by simply microwaving or adding boiling water and is ready in just 90 seconds. The cool-to-the-touch exterior makes the Multi-Seed pot a truly portable product, ideal to enjoy in the office or home. These single serving dual microwavable and hot water options provide a quick and nutritious breakfast, which releases energy in the body throughout mornings. “The new range of Flahavan’s MultiSeed Porridge is a welcome addition

for porridge users because they see the addition of seeds to Flahavan’s oats as having an interesting double health benefit,” states John Noonan, Sales & Marketing Director. “The new range is an exciting development for us as it introduces a new segment, creating more interest in a growing hot oats category.” Brand manager Dolores Whelan comments further: “The launch of the newest member of the Flahavan’s

Lifeforce Original Irish Mueslis, from Boyne Valley Group, are synonymous with wholesome, healthy eating. Lifeforce mueslis are a good source of dietary fibre, contain no added salt or sugar and taste as nature intended. Lifeforce Original Irish Mueslis are easy to prepare and taste simply delicious with both cold and hot milk. Made from the finest Irish grown oats and specially selected nuts and fruits, Lifeforce Original Irish Mueslis taste as nature intended, without artificial additives or table sugar. Lifeforce Original Irish Muesli is available in 1.5kg and 750g packs. Lifeforce Honey Muesli is available in a 750g pack. Lifeforce Gluten Free Muesli is available in a 500g pack. For more information on the Lifeforce range, please contact your Lifeforce rep or call 041 9870300.

Lifeforce Original Irish Mueslis taste as nature intended, without artificial additives or table sugar.

SHOP IRELAND’S FOOD & DRINK, RETAIL & HOSPITALITY EVENT

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il Over 25 reta ars m focuse d se in strations Live demon and new 1000’s of br pro ducts al 130+ potenti er NEW suppli s al fo o d Internation ions award s, pavill s & co mpetition ch more! PLUS much mu

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www.retailnews.ie|September 2011|Retail News|33

SHOP 2011

SHOP 2011: The Retail

Event of the Year

Taking place from September 27-29, 2011, at the RDS Simmonscourt, Dublin, there are a whole assortment of reasons to visit SHOP 2011. A key event in the food & drink, retail & hospitality calendar, SHOP 2011 is taking place from September 27-29, 2011, at the RDS Simmonscourt, Dublin. Housing all of the right ingredients to help exhibitors and visitors generate new business, SHOP will be showcasing the latest innovations and products that the market has to offer! This year, a vital component of the show is the 60% new exhibitors showcasing their products and business solutions. This year’s show is set to be the best ever, spanning over 1,500 square metres and home to more than 140 exhibitors over the course of the three days. Designed for those in the food and drink, retail and food service sectors, SHOP 2011 expects to welcome approximately 4,000 focused buyers and decision-makers to this year’s show. The visitors profile will include buyers from the multiples, forecourt & retail outlets, independent retailers, convenience stores, symbol group buyers, supermarkets and wholesalers, as well as leading players within the food service and hospitality sectors.

Discounts Available at SHOP

Exhibitors will be offering showonly discounts, offers and vouchers throughout the three days. The voucher scheme will be available in the show guide and with visitors’ tickets, and can be redeemed with a business card attached, offering even more value for visitors to the show.

learnShops™

Not only do visitors get to meet with suppliers and key contacts at SHOP, but there are also free content-rich learnShops™ seminars addressing hot industry trends and issues. These learnShops™ have been developed to

SHOP 2011 is set to be the best ever, spanning over 1,500 square metres and home to more than 140 exhibitors over the course of the three days.

provide visitors with detailed in-depth knowledge and innovative, practical advice. There are industry speakers from a broad spectrum of backgrounds, such as Conor Hyde, Managing Director of Bullseye Food Marketing, who will discuss the ‘Top 10 Effective Food Packaging Design Tips’ on Tuesday, September 27 at 11am. Tom Collins, Strategic Business Analyst at Bord Bia, will be presenting on ‘Consumer Lifestyle Trends’ on Wednesday, September 28 at 2pm; and Tara Buckley, RGDATA Director General, will be delivering a seminar on ‘Why Ireland’s Independent Retail Sector is Worth Fighting For’ on Thursday, September 29 at 4pm. Enterprise Ireland has also joined the respected list of speakers, with Jennifer Melia, Manager of Consumer Foods, Horticulture and Seafood at Enterprise Ireland, discussing business funding and Enterprise Ireland’s Lean Business Offer. The Lean Business Offer is designed to encourage clients to adopt lean business principles

within their organisation as a means of increasing performance and competitiveness. This seminar will be held on Tuesday, September 27, at 3pm. A variety of other hot topics will be addressed by keynote speakers over the duration of the show, with the full seminar programme available on www.easyfairs.com/SHOP.

The Knowledge Sharing Village

New to this year’s show is the Knowledge Sharing Village - a rolling programme of 10-15 minute interactive workshop sessions over the duration of the show, covering numerous topics. The Knowledge Sharing Village has been created to focus on specific business areas to help stimulate business growth and stability. It will add value to all visitors who attend, covering areas such as employment law, health & safety issues, tax advice and much more. Delivering the workshops are representatives from companies such as HR & Business Solutions, who will

34|Retail News|September 2011|www.retailnews.ie

SHOP 2011 Maria O’Neill Store Design and Fit-Outs

SHOP 2011 expects to welcome approximately 4,000 focused buyers and decisionmakers to this year’s show.

be talking about legal compliance and management of your best assets – your people. Leman Solicitors are providing advice and information on how to franchise your business, intellectual property and trademarking for brands, while Timepoint are speaking on how to control and reduce wage loss. The speakers will run in rotation on the hour and approximately every half hour for the duration of the show.

The Craft Butchers’ Pavilion

The Associated Craft Butchers of Ireland will be staging their National Sausage and Puddings Final and Speciality Food Final at the show, as well as numerous meat cutting demonstration events over the course of the exhibition. There will also be the Irish Butcher Shop of The Year Award! The ACBI have put together a free seminar programme over the three days at SHOP, including: • Justine Negri of Sole Recruitment will be discussing the topic of Social Networking, its benefits and the cost implications for your business. • Maria O’Neill, from interior business designers Maria O’Neill Design, will be available to offer some free advice on possible business designs to help you become a leader in the market. Simply contact Maria directly to pre-book an appointment and bring a photo of your business interior along for some excellent advice. • Jane Newbigging of Context Business Solutions will be covering the topic of Customer Care and how it can affect your bottom line. Respected celebrity Irish chef, Nevin Maguire, will be a guest judge for the National Sausage and Pudding final, being held on Wednesday, September 28 at 1pm, while The Specialty Food Final will be held at 1pm on Thursday, September 29.

The French Trade Commission The Associated Craft Butchers of Ireland will be staging numerous meat cutting demonstration events, as well as the National Sausage and Puddings Final and Speciality Food Final over the course of the exhibition.

For the first time ever, the French Trade Commission, UBIFrance, will be making an attendance at SHOP. With the hope of promoting business relations and building commercial partnerships between France and

DOES your business need a refresh but you don’t have a big budget? Come to Maria O’Neill Store Design to be creative with your budget, and see samples of their work, before and after. Maria O’Neill Store Design have over 30 years’ interior design experience on a variety of projects. Their portfolio extends to retail outlets, hotels and restaurants projects. Through their design knowledge and experience, they understand how to marry design with the practicality of function and operation. More importantly, they know how to implement good design cost effectively. Call Maria O’Neill for a free consultation: remember, cost efficient design can assist in maximising your business potential. Tel: 087 2507964 Web: www.mariaoneilldesign.com Stand No. B9

Ireland, the French Trade Commission, UBIFrance, will showcase 13 French companies in ‘The French Pavilion’. This French Pavilion will be an exclusive opportunity for the Irish trade to discover the best of French food and drink products, as well as equipment for the retail sector. Throughout the duration of SHOP, a French chef will be highlighting the culinary qualities of the products exhibited on the French Pavilion.

Competitions and the Irish Cheese Awards

A firm favourite at SHOP is the annual Product of the Show Awards. Many

www.retailnews.ie|September 2011|Retail News|35

SHOP 2011 advice from the respected retail consultant, James Burke. Known as the Retail Doctor and one of Ireland’s leading retail experts and advisers, James works with over 100 individual retailers each year. The ‘Doctor’s Clinic’ will be open all day, every day for the duration of SHOP and retailers can arrive at any time for a free consultation lasting approximately 20 minutes. The overall advice on offer can be summarised as ‘Helping retailers to find sales growth opportunities’. James will discuss with individual visitors about smart merchandising, the importance of customer service to their business, profit improvement steps and the utilisation of local

marketing tools as a means of increasing and retaining your customer footfall. Visitors are invited to meet with the Retail Doctor for an ‘injection’ of good advice from one of the industry’s leading experts.

Who will be exhibiting at SHOP 2011 – CEB’s

The quality of the companies who attend SHOP under the County Enterprise Boards’ stands remains one of the talking points every year. Taste, quality and innovative produce from across Ireland will be housed at the show, with many of the country’s most respected artisan food and drink producers in attendance.

Excellence: Your Ingredient for Success The expanded Irish Cheese Awards, now in their second year, are deemed the definitive awards for the Irish cheese industry.

companies have successfully used their ‘Product of the Show’ accreditation to successfully launch their products into new retailers and suppliers, and it’s an important element of the show. All products that are shortlisted will be displayed throughout the show. The Product of the Show awards presentation will be held at 1pm on Thursday, September 29 – the final day of SHOP. Visitors are invited to vote for the People’s Choice Award throughout the show. The expanded Irish Cheese Awards, now in their second year (formerly known as the International Cheese Awards), are deemed the definitive awards for the Irish cheese industry. In association with Sheridan’s Cheesemongers, the awards recognise the outstanding talent and quality amongst homegrown Irish cheese producers. Visitors are invited to sample the cheeses for the duration of the show. The respected panel of judges for these awards includes Monica Murphy from Febvre Wines and Dan Fennelly, an independent cheese consultant, who will be joined by Marian Cahill from Pallas Foods; Peter Ward, Country Choice; Darina Allen, Ballymaloe; and Eddie O’Neill from Teagasc.

The Retail Doctor

Why not take advantage of the valuable training, educational and interactive

EXCELLENCE Importers & Distributors are leading suppliers to the Irish food industry, with over 30 years’ experience in the business. Over that time, they have built up a reputation for quality, choice and value. Their extensive product range includes many leading brands, and they are exclusive agents for Schwarz for Chef, Hammonds, Noel’s, Bick’s, Maggi and Basso. Excellence have also developed their own exclusive brand, Newforge, specially for the demanding foodservice market. Newforge products are carefully sourced from around the world, with the chef’s every need in mind. Excellence Ltd can provide such a range of products that will deliver a higher margin for their customers in the retail trade. Brands such as Napolina now feature over 125 products across all key Italian food categories, including tomatoes, pasta, olive oils, sauces, pizzeria, beans, bean salads and grated cheese. Basso Fedele & Figli produces and bottles mainly extra virgin olive oil, pure olive oil and pomace olive oil. The olives come mainly from Campania, in particular from the area of Cilento, and from Puglia, from the area of Bitonto and Andria. Rowse Honey is the UK’s biggest honey brand and leading honey supplier, with the world’s most advanced honey quality testing and policy equipment. Excellence Ltd can also offer top branded goods in sectors such as canned fruit and vegetables. Sourcing and packing for private labels is an Excellence speciality, and they supply many of Ireland’s major food businesses with their customised requirements. What makes Excellence so special is their people: a long-established and respected management team with a wealth of local knowledge and industry expertise, plus a renowned, proactive sales team. Their dedicated end-user sales team is always eager to give expert advice and useful tips to help you grow your business. Excellence Ltd deliver to all locations nationally on a daily basis. Within the Dublin area, they provide a Day One for Day Two service; outside Dublin, they provide a Day One for Day Three service. A collection facility is also available at their state-of-the-art storage complex in Baldoyle Industrial Estate, where dedicated order-selection and assembly teams guarantee a prompt and professional service, while computerised stock control systems provide accurate and real-time information. Tel: 01 8323300 Web: www.excellence.ie Stand No. D5

36|Retail News|September 2011|www.retailnews.ie

SHOP 2011 Register Now! Exhibitors will be offering big discounts to visitors over the three days and there’s even a daily cash draw. €1,000 will be given away to one lucky visitor on every day of the show. Pre-registering for your show ticket entitles you to automatic entry into the Prize Draw.

Cork CEB Ltd exhibitors: a selection of food producers from across the Cork area will be showcasing their latest produce at SHOP. These include: Drombeg Premium Irish Spirit (WCEB); Gookies (SCEB); Just Nuts (CCEB); Pure Celtic Sushi (SCEB); Green Saffron (SCEB); Killcuan Foods (WCEB); The Sausage Man (SCEB); Una’s Pies (CCEB); Katie’s Real Chocolate (WCEB); and Dee’s Wholefoods (WCEB). Other CEB exhibitors: From counties Limerick, Kerry, Clare, Tipperary North and Donegal, Irish artisan food producers will be delivering a taste fest to visitors at the show. Limerick CEB will be housing Strawbriq Eco Kindling. Formerly known as Strawbrix, the company has recently re-branded and repackaged the product. Strawbriq is the only company in Ireland to use a 100% by-product for use in fires and stoves and has spent the last two years developing this product to the current standard. Companies attending under the Kerry CEB banner include: Barry’s Bakery; Skelligs Chocolate; Ballycarberry fine Foods and Harty’s Foods. Representing Clare under the CEB umbrella is the Burren Smokehouse, an award-winning, family-run business that prides itself in providing the finest quality food products and excellent customer care. Tipperary North CEB is welcoming Bunratty Fine Foods and The Scullery, while Donegal CEB will host Inishowen Country Kitchen Ltd; Island Seafood Ltd; Donegal Rapeseed Oil Co; O’Donnells Bakery and Aroma Coffee Shop and Bakery.

Who else will be exhibiting at SHOP 2011 GM Marketing:

GM Marketing is one of Ireland’s leading sales and distribution companies. The Antrim-based

company specialises in selling and distributing a number of leading grocery and pharmacy brands. Gerard McAdorey, Managing Director, GM Marketing, comments, “We have decided to attend SHOP for the first time this year because we have a number of new and exciting brands that we want to showcase to the retail industry. We feel SHOP 2011 is the perfect platform to introduce these brands and inform the trade of the exciting plans we have in place for the year ahead.” One of the products to be showcased under the GM Marketing banner is the new Levi Roots Drinks Range from Vimto Soft Drinks, and there’s also a sugar free range of biscuits, chocolate, cookies and shortbread, which is suitable for diabetics. Task Maestro:

For systematic solutions, there’s Task Maestro, who are launching their first product at SHOP. Designed by Gabriel Bradley, Task Maestro is a work flow tool designed for the catering industry. It not only sets out the tasks expected of staff, but it tracks by who and when those tasks are completed. Task Maestro will be present at stand F13. PetroCourt:

PetroCourt have over 25 years experience in the forecourt and oil storage industry in Ireland and provide a complete range of products and services to the industry. PetroCourt will be presenting Gilbarco Veeder Root’s and King Tank Technic as their partners on their stand at SHOP. Gilbarco Veeder Root is one of the world’s leading manufacturers of forecourt equipment, with a complete range of pumps, tank gauges and payment terminals. King Tank Technic are the tank lining and tank cleaning specialists in the UK and Ireland, using the ADISA accredited tank lining system.

SHOP 2011 will be showcasing the latest innovations and products that the market has to offer! Scan Coin:

Scan Coin, Europe’s largest manufacturer of cash handling equipment, has developed an RCS, Retail Cash System, to help retailers automate their in-store cash office. The system cost-effectively provides self-service cash supply in the morning and after the shift, offering increased efficiency and staff flexibility, combined with a significant return on investment. Cuspal:

As one of the leading companies in visual communications, Cuspal have recently invested considerably in technology to deliver an end-toend solution for their customers. From an exterior fascia board, to an in-store display, Cuspal have the ability to deliver communication solutions to accommodate any business requirement.

Opening Hours of SHOP 2011: Tuesday, September 27, 2011: Wednesday, September 28, 2011: Thursday, September 29, 2011:

10.00 - 18.00 10.00 - 17.00 10.00 - 17.00

Register for FREE fast track entry at www.easyfairs.com/SHOP. For more information please contact Lucy Daley on +44 (0)20 8843 8800, or visit www.easyFairs.com/SHOP.

New Retail News Website Launching Soon

Rolling news feed: Keeping retailers informed of breaking news, diary dates etc.

Banner ad: Prominent advertising banner ad, ﬂash or static graphics linked to your site

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For rates and special advertising deals in Retail News Magazine or on www.retailnews.ie, please contact the sales ofﬁce on 01-241 3095 or email retailnews@tarapublishingco.com

38|Retail News|September 2011|www.retailnews.ie

Special Report

Damian Oâ&#x20AC;&#x2122;Reilly, Lecturer in Management, DIT School of Retail Management, explains why retailers need to understand how their customers think, in the second of a series of articles.

How Your Customers IN the last issue, we introduced and discussed the first two stages in the process of consumer decision making. To recap, they were; 1. The Need Recognition; 2. Information Search; The last three steps in the process are: 3. Evaluation; 4. Purchase; and; 5. Post-Purchase Behaviour â&#x20AC;&#x201C; and these will be addressed later in the article. Why should retailers devote their scarce time to understanding how their customers make decisions? Most retailers believe they know and understand their customersâ&#x20AC;&#x2122; needs and develop an appropriate product/service offering to satisfy this segment. But the recent economic crisis has dramatically altered how, where and when customers shop and there has also been increased

Think... pressure on retail margins. Greater pressures have resulted in a decrease in customer loyalty; increase in large lean competition; increased number of product introductions and a more diverse and fragmented marketplace.

Polarised Retail Market

The retail market, especially in the grocery sector, has over the last number of years polarised. On one side, we have the low-cost suppliers, Aldi and Lidl (predominately own-brand) and Tecso, whose advertising suggests that they are delivering Every Day Low Prices (EDLP). On the other end of the spectrum are niche or specialised retailers. Retailers who have definite strategies as to which end of the consumer spectrum they satisfy

have been successful in the current environment. Those who have chased the competition or those without definite strategies have been left in the middle and become vulnerable. The recent Superquinn saga demonstrates this polarisation. Were Superquinn a niche player in the market or did they determine that their main competition was Tesco and the discounters? I believe that trying to match and compete with Tesco on price was the wrong option (due to lack of buying power and resources) and that they should have taken the recession as an opportunity to redefine the company as the major niche player in the Irish grocery retail market. Whole Foods Market (www. wholefoodsmarket.com) has been

www.retailnews.ie|September 2011|Retail News|39

Special Report successful in achieving this in the fiercely competitive US market. The Irish grocery consumer marketplace has changed dramatically and retailers need to better understand the consumer to develop strategies for the future. Grocery shopping is mainly classified as habitual decision making, where regular decisions about where to shop and what products to purchase are made quickly and without much information search. Grocery consumers tend to be store loyal or brand/product loyal. Purchase decisions that involve little or no conscious effort include those not important to the customer, merchandise consumers regularly purchase and brands/stores where consumers display loyalty.

Reinforcing Consumer Behaviour

If a consumer habitually comes to your store, you need to reinforce their behaviour by: • • •

Ensuring merchandise is in-stock; Providing consistently good service; Offer rewards to loyal customers.

If you begin to lose customers to the local competition, you must break the habit and this may be achieved through targeted promotions to the disaffected customer. With greater pressures and intensity, retailers have focused on driving efficiencies to lower costs and focused on profitable growth. However, this is not an easy task. As outlined above, consumers’ shopping expectations and behaviour have become increasingly difficult to satisfy. Retailers must focus on their value

proposition, which is how a retailer differentiates their offering from the competition. Ask yourself the following question: “Why should my ideal customers (the segments you intend serving) buy from me instead of the competition?” If you cannot answer this convincingly, then you need to revisit your value proposition and how consumers are motivated to shop in your store.

Ensuring Profitability

What do retailers need to do now to ensure profitability and viability into the future? 1) A Focused Value Proposition:

Retailers need to define “what they want to be”. 2) A Greater Understanding of what Drives/Motivates their Customer:

Retailers have a wealth of data available and they need to determine how to turn that into useful information and insight. 3) Utilising the Data to Deliver a Seamless Shopping Experience:

Today, multi-channel retailing is part of the future and retailers must deliver through all channels. How can retailers develop better customer insights? Traditional marketing-based strategies have been based on segmentation, targeting and positioning. Companies determine their market segment(s), they then target this segment with the relevant variety of product, and finally, position the company with the target segment. In segmenting markets, many rely on demographic characteristics, but this method is dated, especially in the era of the technology-savvy customer. This has meant that there is no ‘typical’ customer anymore. Consumer research needs to examine not only the ‘what’, ‘where’ and ‘when’ customers bought, but also needs a greater understanding of ‘why’ decisions are made.

six seconds browsing the shelf in a particular category before they choose the preferred product. How does the retailer/manufacturer get into the ‘consideration’ set of the consumer when they are so fickle? A shopper who wants to purchase tinned soup, for example: what’s in their mindset when choosing? Besides the brand/quality, their mind has a consideration set; tinned soup is hot, nutritious, quick and convenient and can be stored. In Category Management, the retailer will place products with similar consideration sets next to the tinned soup – Pot Noodles, for example. Here’s a second example. If you are choosing wine, the decision tree of the shopper would probably follow the following pattern: first, white or red?; second, price; third, type of grape; fourth, country of origin. In many supermarket chains today, you will see the wine section is divided into these categories. To conclude, the environment is changing and the customer is more unique than ever, with access to large amounts of information – including mobile – making it increasingly difficult for retailers to determine consumer preferences and to deliver their value proposition better than the competition. Being ‘stuck in the middle’ (as Superquinn was) of the polarising grocery market is not where a retailer wants to be and this in turn puts pressure on all retailers to better utilise the information available in determining the most effective customer strategies for the future. In the next issue, I will discuss the last item in the decision making process, Post-Purchase evaluation, and how this can be addressed through consistent customer service.

The Advent of Category Management

Grocery retailers have increasingly turned to Category Management to develop this understanding. This concept seeks to analyse the decision tree process a customer uses when purchasing from different categories. Consider an average weekly shopping trip; more than 50% of shoppers go without a shopping list, leaving them more open to promotions and impulse purchases, and they spend about

Damian O’Reilly, Lecturer in Management, DIT School of Retail Management.

40|Retail News|September 2011|www.retailnews.ie

Confectionery

Sweet

Disposition Ireland’s collective sweet tooth is good news for the confectionery sector, particularly as the hectic Halloween season approaches.

Cadbury Dairy Milk is launching its biggest ever Irish marketing campaign this month, including a specially created new TV ad, as well as extensive support in outdoor, press, digital, direct mail and sampling.

Irish consumers’ sweet tooth is the Cadbury stuff of legend amongst confectionery This September, Ireland’s favourite companies, with Ireland regularly chocolate brand, Cadbury Dairy Milk topping consumption charts, (Source: ACNielsen, Market Track, particularly for chocolate confectionery. W/E 25/5/11) will launch its biggest While the sector has suffered in value ever Irish marketing campaign. terms with the advent of the recession, The 12-week campaign will see an it has proved far more resilient than investment of €2m, including a many other FMCG categories, and specially created new TV ad, as well volumes have remained high. as extensive support in outdoor, press, Indeed, the market for digital, direct mail and sampling. confectionery in Ireland increased at Cadbury Dairy Milk holds a compound annual growth rate of 16.8% of the total chocolate market 3% between 2004 and 2009, according (Source: ACNielsen, Market Track, to Datamonitor, who estimate that W/E 25/5/11) and has long been the the chocolate category leads the way, chocolate of choice for Irish people, due accounting for a share of 77.8%. Irish to its unique taste and heritage. consumers are amongst the The high biggest chocolate eaters in the impact TV world, as each of us munches creative was our way through an estimated developed 11.2kg of chocolate each year exclusively for The sugar confectionery Irish viewers sector has been showing the and is filled strongest growth, increasing with evocative at a compound annual growth imagery of rate of 5.3% between 2004 irresistible and 2009, and with new, flowing innovative products coming on chocolate stream regularly, consumer shots, using interest in sugar confectionery, the latest particularly the popular gums technology and jellies segment, shows no available. signs of abating. The campaign With the valuable will also see Halloween sector on the way, the launch of estimated to be worth more the first Irish than €35m, now is the time Smartphone Twirl Bites is a new sharing bag of to stock up and highlight the application bite-size pieces of Cadbury Twirl, big confectionery brands to for Cadbury sure to prove popular with Irish maximise sales. Dairy Milk, an consumers.

exciting new development which will bring the magic and taste of Cadbury Dairy Milk to an ever increasing population of Irish Smartphone users. To create visibility in-store, there is a full Point of Sale suite available, including a floor stand, counter units and in-store theatre. New from Cadbury, Twirl Bites is an ideal new format for the Twirl brand, due to its share-ability. The chocolate bags category is currently performing strongly, growing at over 5% (Source: ACNielsen, Market Track, 8 W/E 17/04/11), which is being driven by innovation in sharing products. With Twirl Bites, Cadbury is following the great success of Caramel Nibbles and Crunchie Rocks, introducing a sharing bag of bite-size pieces of Cadbury Twirl – perfect for sharing with friends and family. To promote the launch, an in-store sampling campaign will drive shopper trial, while pre-filled HODs will also be made available for ease of display and to give visibility and additional siting. The launch is also being supported by nationwide marketing for the Twirl brand, which will include TV advertising. Twirl is the third best-selling chocolate impulse product after Cadbury Dairy Milk and Cadbury Wispa, with a market value of €6.5m. The market data emphasises the continued popularity of the taste of Cadbury Dairy Milk chocolate among Irish consumers. To maximise sales potential, Twirl Bites should be merchandised alongside the complete

an d * r b e t a l co o h c .1 o N s ’ Ireland

Biggest Cadbury Dairy Milk campaign ever with €2m support New Irish TV ad, outdoor, press, digital, direct mail and sampling

Stock up Now!

*Source: AC Nielsen MarketTrack MAT 26/06/11

42|Retail News|September 2011|www.retailnews.ie

Confectionery Cadbury chocolate bags range in the pegged section and in a high-traffic area (bespoke stands available from Kraft Foods sales reps). New Guzzle Puzzle from The Natural Confectionery Company is a unique and exciting addition to the sugar confectionery category. The ‘magical’ product features different jelly shapes in different flavours which fit together. The magical part comes when the jellies are combined to produce entirely new flavours: cinnamon and lime create cola; orange and banana give you bubblegum; raspberry and lime make ‘pink lemonade.’ The Guzzle Puzzle concept is unique and certain to drive interest in the sugar category. To maximise sales potential, the product is available in both pre-filled HODs and counter units, as well as by the case of 36. The sugar confectionery category is currently in growth and TNCC is capitalising through exciting product innovation. Niamh Twyford, Senior Brand Manager at Kraft Foods, underlined the necessity for NPD in the category, commenting: “It is important to continue to innovate, offering consumers real points of difference in the product offer. Guzzle Puzzle, like all our concepts, delivers on key drivers of sugar consumption – natural, texture, colours, flavours, variety, fun, playful, innovative – as well as on key consumer trends.” TNCC is the number one sugar hanging bags brand, and has been for almost seven years, and Kraft Foods is the number one manufacturer, with over 26% market share (Source: ACNielsen, Market Track, W/E 17/04/11). TNCC are being supported with a €500k campaign, including TV, online/digital and press advertising. Guzzle Puzzle is being followed this September with another exciting launch, Fruity Choos, TNCC’s new chew variant, available in bag format.

Nestlé

Following the successful launch of Kit Kat Pop Choc sharing bag in March, bitesize Kit Kat will be available in a 40g impulse bag. Kit Kat Pop Choc are delicious bitesize pieces of famous Kit Kat wafer, coated in milk chocolate. Containing no artificial colours, flavours or preservatives, the new impulse bag is set to be a huge hit among Irish consumers. “The impulse bag is a natural move for the brand, enabling consumers to enjoy Kit Kat Pop Choc in a convenient impulse pack,” explains Maria McKenna, Nestlé Ireland’s Confectionery Manager. “To ensure shoppers can easily find Kit Kat Pop Choc, it should be sited on the main

Rowntrees Sour Pastilles are proving a huge hit with consumers looking for an intense sour taste.

New Kit Kat Pop Choc comes in a 40g impulse bag: delicious, bite-size pieces of famous Kit Kat wafer, coated in milk chocolate.

fixture with other bitesize products, such as Aero Bubbles. To maximise sales at launch, retailers should use branded POS and create eye-catching displays in store that shoppers cannot miss.” So far, 2011 has been a hugely innovative year for Nestlé Confectionery, with the launch of Aero Caramel, Aero Biscuit, Kit Kat Pop Choc, Rowntrees Sour Pastilles, Rowntrees Very Berry Jellies, Rowntrees Sour Faces and Rowntrees Jelly Aliens. The year got off to a great start with the launch of new Aero Caramel, a bar of bubbly chocolate topped with caramel and encased in smooth milk chocolate. Kit Kat also saw category expansion through the launch of Kit Kat Pop Choc - a bitesize offering of

Making the Most of Halloween HALLOWEEN is the third largest season, after Christmas and Easter, for confectionery, writes Sabrina O’Leary, Category Manager Chocolate, Kraft Foods. €35.4M of confectionery is sold in the four weeks run-up to Halloween (Source: ACNielsen Extended Scantrack, 4 W/E 31/10/10). Kraft Foods is the market leader with a market share of 39% (Source: ACNielsen Extended Scantrack, 4 W/E 31/10/10). Shoppers purchase confectionery for Halloween parties and also to give to the ‘trick or treaters’ that call to their doors on Halloween night. Treatsize confectionery remains the dominant format, but sugar bags and impulse formats have grown in the last number of years. In 2010, Kraft Foods launched a number of new Cadbury products to help grow the Halloween occasion. Within the impulse chocolate format, Cadbury Screme Eggs and Cadbury Dead Heads were launched. Within sugar bags, two new products were launched under the The Natural Confectionery Company brand: Cauldron’s Mix and Spooky Treats. All four products had a successful launch and will be repeated for Halloween 2011. New for 2011 is the Cadbury Trick-or-Treatsize tub, containing a mix of Cadbury treatsize favourites, including Cadbury Crunchie, Curlywurly, Fudge and Chomp, and is an ideal sharing format.

New Guzzle Puzzle from The Natural Confectionery Company features different jelly shapes in different flavours which combine to produce entirely new flavours.

Kraft Foods will have innovative, seasonal themed POS in-store to bring the season to life, including a spooky impulse unit containing Cadbury Dead Heads, Cadbury Screme Eggs and The Natural Confectionery Company Spooky Treats and Cauldron’s Mix.

44|Retail News|September 2011|www.retailnews.ie

Confectionery How to Maximise Halloween Sales: Top Tips for Retailers • Create a Halloween zone in a high traffic flow location highlighting the occasion. • Use ‘theatre’ to bring the zone to life e.g. Halloween visuals and pumpkins. • Stock a number of different confectionery formats to appeal to all shoppers. • Hotspot impulse Halloween confectionery at the counter to drive incremental sales.

Aero Biscuit is a delicious combination of bubbly chocolate embedded with crunchy biscuit pieces, and all for just 99 calories.

everyone’s favourite chocolate and wafer bar. Brought to market initially as a sharing bag, Kit Kat Pop Choc has recently been extended to include new smaller size impulse bags. In terms of impulse sugar confectionery, Rowntrees has strengthened its number one position (Source: ACNielsen Market Track, June 2011) through the launch of new product innovation such as Sour Pastilles. Offering five tangy flavour sensations - blackcurrant, lime, cherry, pineapple and melon – Rowntrees Sour Pastilles are already proving a huge hit with those consumers looking for an intense sour taste. Rowntrees also brought three new sharing bags to the market with the launch of Rowntrees Very Berry Jellies, Rowntrees Sour Faces and Rowntrees Jelly Aliens. These new formats are the juiciest of the Rowntrees brand, with Very Berry Jellies containing a market leading 50% of real fruit juice. As the market leaders of the chocolate biscuit bar category (Source: ACNielsen, Market Track, June 2011), Nestlé has driven further growth through the launch of Aero Biscuit – a delicious combination of bubbly chocolate, embedded with crunchy

biscuit pieces, and all for just 99 calories. This extension of popular impulse brands into new categories continues with the forthcoming launch of Rolo Biscuit - a delicious combination of soft Rolo caramel and crunchy pieces in individually wrapped biscuits. New product innovation is an ongoing priority for Nestlé Confectionery and this month sees the launch of an impulse format from Quality Street with My Purple Bar. The new limited edition bar combines four Quality Street Purple Ones with their smooth milk chocolate, signature creamy caramel centre and whole hazelnut. Following this, the limited edition Smarties Pumpkin impulse treat of mini Smarties encased in a milk chocolate hollow pumpkin will be launched just in time for Halloween. Through such strong insight-led innovation, backed by highly visible advertising, integrated promotional activity and in-store activation, Nestlé Confectionery continues its commitment to invest in the future of the Irish confectionery market.

Kellogg’s

Kellogg’s Rice Krispies Squares are having more fun this September with

New Kellogg’s Rice Krispies Squares Totally Chocolatey Orange is available in stores nationwide for a limited period only.

the launch of their limited edition Rice Krispies Squares Totally Chocolatey Orange. This new deliciously gooey addition to the range is available in stores nationwide for a limited period only. Rice Krispies Squares Totally Chocolatey Orange is the fifth variant from the Rice Krispies Squares range to hit the shelves, with Totally Chocolatey, Marshmallow, Caramel & Chocolate and Crazy Choc already proving a huge success in the Irish market. “This new, deliciously gooey addition to the range will create some excitement in the snacking category and really drive growth in the convenience channel,” notes Emer Barry, Snacks Brand Manager for Kellogg’s. Rice Krispies Squares Totally Chocolately Orange is being supported by a new TV and outdoor advertising campaign from September 12.

Great Year for Tubs Sweets IN the course of one year, Tubs Sweets, a new confectionery company based in Rathnew Co. Wicklow, have grown from a simple idea to a thriving business employing over 20 people, led by Wicklow man Kevin Ginty. Tubs Sweets are now available in Dunnes Stores, Superquinn, Topaz, Londis, Gala, Costcutter and Heatons Stores, along with many independent outlets. “We are delighted with how the business has developed over the last 12 months,” enthuses Kevin Ginty. “In the early stages, we had a staff of just six but their dedication and hard work has helped bring Tubs Sweets to where it is today.” Tubs Sweets supplies 60 different varieties of sweets, from traditional favourites such as cola cubes, pear drops and liquorice allsorts, to new and exciting raspberry ‘blue’ bonbons. “The range is expanding continually,” says Kevin. “The positive feedback from the general public is so encouraging, and our merchandisers get regular requests when out on the road for personal favourites to be added to the range.” All tasty treats are packaged in handy eye catching Tubs for easy transportation, whether consumers are in the car, bus, train or plane, on an outing or bringing a gift.

PACKAGING REGULATIONS are putting your business under

pressure Repak membership will lighten your load. Any business with a turnover of €1million that places 10 tonnes, or more, of packaging on the market, must comply with the newly amended packaging regulations – or face prosecution. Compliance is as easy as joining Repak, from as little as €1per day. Repak is the most effective compliance option chosen by over 2300 companies. Over 50 companies have already been prosecuted and, with over 2,000 inspections a year, your business could be next. Why risk heavy fines and even prison? Find out more about your company’s obligations under the amended packaging regulations - and how Repak membership can help – by visiting repak.ie or call 01 – 4670190.

- < 5 + 0 5 . 7 ( * 2 ( . 0 5 . 9 , * @ * 3 0 5 .

46|Retail News|September 2011|www.retailnews.ie

Hot Beverages

Liquid Gold Hot beverages mean big business for retailers, as Irish consumers display incredible loyalty to their favourite warm drinks brands. herbal tea and portfolio of in-home and Irish consumers are extremely pu’erh, white tea out-of-home coffees. brand loyal when it comes to the Hot and rooibos within The leading portfolio Beverages category. Indeed, recent “other” tea. However, of brands includes research by Carat reveals that tea black standard tea is Nescafé Gold Blend, brands (52%), command the highest expected to suffer due Nescafé Black Gold, loyalty levels of all grocery brands. to higher prices and Nescafé Original, Nescafé “When it comes to tea and coffee, changing consumption Café Menu, Nescafé consumers are incredibly brand loyal: patterns, with many Alta Rica, Nescafé Cap they know the brands they like, they seeking to drink more Colombie, Nescafé Espresso, have made that decision and they are water and less tea. Nescafé Café Parisien and going to stick to it,” revealed David That said, black tea Nescafé Green Blend, which Berry, Commercial Director, Kantar still accounts for 66% was launched last year Worldpanel Ireland to Retail News of total volume of and is a blend of roasted recently. hot drinks sold in and unroasted green Irish consumers fell in love with Ireland, according to beans, which are high in quality tea and coffee products, Euromonitor. antioxidants. from green tea to latte, during the Nescafé Gold Blend is early part of this century, with an the brand leader in the explosion in specialist coffee shops Nestlé soluble coffee market in particular. While the recession Nescafé, Ireland’s and is the beacon brand has impacted on the sector, rather leading brand of soluble Nescafé Green Blend is a blend of roasted and unroasted within the coffee aisle. than forego their favourite hot drinks coffee, is going from green beans, which are high in A recent pulse survey altogether, more and more consumers strength to strength, antioxidants. amongst consumers are replacing on-trade drinks by with another year of aged 30-50 years showed just how trading up to premium products impressive market share growth and strong consumer loyalty in Ireland is, which they can make in a 57.1% value with over 50% unanimously declaring the comfort of their home share of the Nescafé Gold Blend their favourite or work-place, according soluble coffee brand of coffee (Empathy June 2011, to the latest report into the market. (Source: all coffee brands). sector from Euromonitor. ACNielsen, MAT, Nescafé Gold Blend enters another Also, the growing household July 10, 2011). exciting phase with the launch of its penetration of coffee machines, The soluble coffee new look jar and richer aroma, which particularly coffee pod market is worth hit the shelves in August. In fact, all appliances, resulted in strong approximately of the Nescafé premium and super sales of coffee pods, as well as €42m year to date premium range will take on the newpods in tea and chocolate-based with value up by look shape, which gives the range great flavoured powder drinks, in 5.8% and volume shelf stand-out. 2010. increasing by Nescafé continues to invest Indeed, Euromonitor 2.4%. significantly in both innovative media predict growing interest Renowned and shopper marketing activities, in high-quality hot drinks for its coffee acknowledging how important it is to amongst Irish consumers, expertise, appeal to both consumer and shopper with a strong consumer Nescafé was along the path to purchase. focus on quality. This is launched by Nescafé also recently launched likely to result in ongoing Nestlé in Nescafé Original 3 in 1, a portion growth for fresh coffee Switzerland controlled sachet containing coffee, beans and fresh ground in 1938 and milk and sugar in one. This is proving coffee pods in coffee, while Nescafé Gold Blend enters another over 70 years to be particularly appealing to tea will see strong sales exciting phase with the launch of its later, Nescafé has 18-25-year-olds on-the-go. growth for green tea, fruit/ new look jar and richer aroma. an outstanding

48|Retail News|September 2011|www.retailnews.ie

Hot Beverages Kraft Foods and TV3 Announce Ireland’s First Product Placement Deal

Pictured is recently crowned Miss Universe Ireland, Aoife Hannon, who joined forces with Lyons Original Tea to launch new research on the importance of “elevenses”, the mid-morning cuppa, for Irish tea drinkers.

Lyons

New RED C research commissioned by Lyons Tea has revealed that 65% of Irish people drink tea for their midmorning elevenses, but most don’t wait till 11am. The research, launched by psychologist Dr. Linda Papadopoulos, reveals one in three people who take an elevenses tea break do so between 9am and 10am, and half of people take their break between 10am and 11am. “The elevenses mid morning break really brings the social aspect of tea

Lyons Tea recently supported its Lyons Decaffeinated Tea with targeted print, outdoor and online advertising and PR activity.

to life – it’s all about interaction,” Dr Linda Papadopoulos commented on the research. “Taking an elevenses break at whatever time you need it really de-stresses people because they take the time to drink their cup of Lyons Tea, to reflect and to connect with those around them.” Lyons Tea also recently supported its Lyons Decaffeinated Tea with targeted print, outdoor and online advertising and PR activity for its ‘Same Great Taste, Same Great Talk’ campaign. Decaf is the second fastest growing category within tea in Ireland at +6% (value) compared to the fastest growing, Green Tea at +11% (Source: ACNielsen, March 2011). However, Decaf tea household penetration is just 7%, half that of Decaf coffee in Ireland which has 14%. Lyons, Ireland’s number one tea brand with 43.9% market share (Source: ACNielsen, June 2011), is an iconic Irish brand with more than 100 years of tradition in Ireland, having started business in Dublin in 1902 near Christ Church Cathedral. It is now owned by Unilever Ireland. The Lyons Tea range includes Lyons Gold Blend, Lyons Original Blend, Lyons Gold Blend Reserve, Lyons Kenya Blend, and Lyons Decaffeinated Tea. Lyons Green Tea is available in original, with Lemon and with Mint. Lyons Tea is currently working

KRAFT Foods Ireland has signed a six figure partnership deal with TV3 to feature its premium coffee brand Kenco and new product Kenco Millicano on TV3’s flagship chat shows, The Morning Show with Sybil & Martin and Midday. This will make Kraft Foods the first paid for product placement advertiser on Irish television screens since the Broadcasting Authority of Ireland revised the General Advertising Codes on May 2, 2011. The 12-month partnership deal between Kraft Foods and TV3 combines the product placement with sponsorship of both programmes and commences this month. Focusing on two of Kenco’s key brands, the link will see The Morning Show presenters Sybil Mulcahy and Martin King, drink from Kenco branded mugs, highlighting Kenco’s sustainability message of 97% less packaging. At the same time, Kraft Foods’ new premium coffee, Kenco Millicano will be featured on Midday, which is presented by Colette Fitzpatrick and Elaine Crowley, as well as their panel of guests. “Kenco Millicano is Kenco’s first ‘Wholebean Instant coffee’: a clever combination of instant coffee and finelymilled beans, delivering the closest thing to proper coffee in an instant,” notes Sandra Gahan, Head of Marketing for Kraft Foods Ireland.

Martin King, presenter of The Morning Show on TV3, is pictured with Sheila Gahan, Head of Marketing for Kraft Foods Ireland.

www.retailnews.ie|September 2011|Retail News|49

Hot Beverages with the Rainforest Alliance, independent experts in sustainability, and by 2012, all Lyons tea will only come from Rainforest Alliance Certified farms.

Barry’s Tea

Iconic Irish brand, Barry’s Tea has been blended since 1901 specifically for the Irish palate and continues to be the nation’s favourite Irish tea, accounting for 39% of all tea sales in Ireland. Consistently producing the highest quality teas for 110 years, Barry’s Tea ensures that tea fans are always guaranteed a Golden Moment, whether it’s enjoying Barry’s Tea main range, or its speciality tea blends. The Barry’s Tea speciality range includes delicious blends of Fruit, Herbal, and Green Teas. Using Barry’s Tea blending expertise, all flavours, from South African Rooibos to Lemon & Ginger, have been carefully created to suit any mood.

Bewley’s Wins Gold for Coffee Quality BEWLEY’S coffees and teas have received international acclaim at the Great Taste Awards in London. Bewley’s Fairtrade Master Blend Coffee and Rooibos and Camomile Speciality Teas received gold medals in recognition of their exceptional taste and quality. Bewley’s success was replicated in the grocery coffee category, where the company’s new Ziploc Organic Guatemala Fairtrade Coffee scooped a Gold Medal. Pictured celebrating the award are NoelJohn McLoughlin, Marketing Manager, and Bewley’s Grafton Street barista, Magda Pabian.

in the category. The new resealable ziploc coffees are being launched in five varieties - Gold Roast, Rich Roast, Java, Kenya and Organic Guatemala (all 227g packs). Two new varieties join the range - Araku India and Panama, marking the first time that an Indian coffee has been launched in Ireland or the UK. Bewley’s also launched 100g trialsized packs of its Gold Roast and Rich Roast fresh coffee. 85% of Irish people drink coffee. More and more are choosing fresh coffee in preference to instant. Over 350,000 households in Ireland now regularly buy fresh Iconic Irish brand, Barry’s Tea has been blended since 1901 specifically for the Irish palate. ground coffee, making it one of the fastest growing product categories in supermarkets. As popular online as it is in people’s range of fresh ground coffees includes As Ireland’s oldest tea company, homes, Barry’s Tea has over 39,000 a reclosable ziploc strip, an airtight the Bewley’s brand continues to fans on Facebook and seamlessly freshness valve, foil packaging, coffee belongs in the digital space. Creating golden moments on social media platforms, also including Twitter, Flickr, YouTube and even the Barry’s Tea iPhone App, Barry’s Tea continues to evolve the way it connects with its tea lovers and allows fans to send real life postcards of their Golden Moments to loved ones. To find out more about In 2011, Bewley’s launched new Ziploc resealable fresh coffee packs, which make great the full range of quality teas tasting coffee easier than ever before to enjoy at home. in the Barry’s Tea portfolio, visit www.barrystea.ie, www.facebook.com/ barrystea or use only the finest ingredients in strength guides and the packs are www.twitter.com/barrysteatweets. all its award winning teas. During imprinted with an easy-to-understand 2011 Bewley’s further expanded its three step guide to fresh coffee making Bewley’s product offering by launching a new at home. Bewley’s has made great tasting range of instant coffees and drinking Bewley’s is the fresh coffee market coffee easier than ever for consumers chocolate. leader and is driving further growth to enjoy at home by launching new resealable fresh coffee packs in Ireland for the first time. The vibrant new

50|Retail News|September 2011|www.retailnews.ie

Fuels

Fuelling

Profits With winter around the corner, now is the time for retailers to start stocking up on a range of fuels, from firelogs and coal to LP Gas cylinders.

Model Ruth Griffin is pictured with the Flogas Superser Catalytic and Radiant heaters, exclusively available from Flogas.

“Flogas Superser heaters are the With the majority of Irish consumers Flogas perfect solution for cost-conscious having less cash in their pockets, allied Last winter’s bitterly cold conditions customers looking to control their to rising prices for domestic electricity prompted record consumer demand heating bills,” said Eoin. “They are and gas supply, many households for Superser mobile heaters. “Sales extremely useful as an instant, across the country are turning to ‘spotincreased by more than 10%, with a economic and portable way to ‘spotheating’ to save money for the winter number of retailers running out of heat’ a room quickly, as many months. It has been well documented stock at critical times and thereby customers find it far cheaper than that there is a return to real fires, missing out on valuable sales across the country, while the growth opportunities,” said Eoin in sales of mobile heating appliances O’Flynn of Flogas Ireland, continues apace. the exclusive distributor for This winter, retailers should ensure Superser in Ireland and the they stock a range of heating products, UK (Contact Tel: 041 9831041. to ensure they don’t get left behind Web: www.flogas.ie). when the cold weather starts to bite. “Long-range weather forecasters are predicting that December, January and February will be colder than average in Ireland, with a 33% chance of a white Christmas,” reveals Eoin O’Flynn of Flogas Ireland, who urges retailers not to get “left out in the cold” this winter. In short, the advice for retailers is to stock up on a range of fuels, from Firelogs and peat briquettes to LP Gas cylinders, as a sure-fire way to boost your profits over the coming months. Flogas cylinders are a familiar sight at retail outlets throughout the country.

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52|Retail News|September 2011|www.retailnews.ie

Fuels turning on the central heating for an hour or two.” For homeowners who want instant heat that’s both stylish and useful, Flogas supplies two very contemporary looking and stylish mobile heaters, the Superser Radiant and Superser The Homestead 1.1kg Fire Log has proved extremely popular with Irish consumers, since its introduction Catalytic. In in early 2005. particular, the Superser Catalytic A nationwide network of Flogas burns without a flame and has lower quickly became a stable product after-sales personnel are on 24-hour touch temperatures, making it safer, within the brands portfolio, generating call for appliance repairs and and it’s fitted with easy glide castors, considerable sales in this category. maintenance. which allows for trouble-free moving Indeed, it is estimated that Homestead Flogas supports all its products and from room to room. Fuels account for 53% of the total services and plans through innovative Flogas is very much a fuel for fuels sales within symbol groups and dealer promotions, excellent point of today. Flogas cylinders are a familiar independent retailers, while rivalling sale material, targeted advertising sight at retail outlets throughout the the two leading brands in Ireland. and public relations. For further country. The butane cylinder is a clean Over 70% of households have open information on Flogas products and and economical choice for consumers fires and the ignition sector is one services, just contact 041 9831041 or and is hard to beat as a low cost, of the fastest growing sectors in the visit www.flogas.ie versatile energy package. household category. The Homestead For retailers looking to save money “Propane direct dealers have been fuels range consists of two skus of on their own overheads either at work reporting strong annual sales growth firelighters, 30’s and 60’s, and a 1.1kg or at home, Flogas also supply natural and many of our customers want the Fire Log, which was introduced to the gas to the commercial and residential benefits of gas in the home for fires range in early 2005. natural gas market. It currently offers and cooking but are either not on the Homestead Fuels continue to grow SMEs a guaranteed 11% saving on natural gas grid or don’t want to go year-on-year. Fire Logs are largest the price charged by Bord Gáis, which through the hassle of changing, so find contributor to this growth, accounting makes it one of the most competitive propane cylinders in a discreet corner for 25% of total Homestead fuel sales. offers in the marketplace. of their back garden a very practical Firelighter sales now account for alternative,” noted Eoin. 51% of the total fuel sales in Ireland, Flogas was the first company in and Homestead Firelighters continue Homestead Ireland to introduce the Securiseal to grow in line with the market. After the launch of the Homestead (gas cylinder seal) for Propane “Our new, fresh look fuels brand in 1986, the firelighter range cylinders, once again proving total packaging has given the range a well commitment to their bottled gas deserved face lift,” notes Homestead brands. Similar to the Butane seal, Brand Manager, Janice Gibney, the Securiseal is a solid, tamper“while maintaining the same great proof cylinder seal, made from a quality which is now even better resilient polyethylene material of value, coupled with some really the highest quality - far superior to strong activity for 2011, meaning that other shrink-wrapped bottled gas Homestead continues to ‘Bring Value seals currently on the market. Home.’ Flogas has an excellent distribution system, with maximum Bord na Móna Fuels coverage. The company has three For over 50 years, Bord na Móna marine gas terminals, at Drogheda, Fuels Ltd, the largest supplier of solid Cork and Belfast, and a land fuel in Ireland, has led the way in terminal at Ballyhaunis. Flogas designing innovative and convenient operates a nationwide network ‘real-life’ fire solutions for busy Irish of distributors who fill cylinders consumers. and deliver bottled gas to dealers Last November, Bord na Móna in their area. Distributors are launched the award winning product strategically located all over the FireMagic Firemaker. This innovative country to ensure constant and product guarantees the faster way speedy delivery of bottled gas – to a fuller fire within minutes. even in winter on the cold, icy FireMagic Firemaker is quick, clean Homestead’s firelighter range is one of the roads, when demand for bottled gas and economical to use, providing a top selling products in the portfolio. is high. convenient substitute for other fire

54|Retail News|September 2011|www.retailnews.ie

Fuels

Bord na Móna Fuels Ltd has led the way in designing innovative and convenient ‘real-life’ fire solutions for busy Irish consumers for over 50 years.

pioneering high performance kerosene firelighters and firelogs. Standard Brands, manufacturers of Zip, invented the domestic kerosene firelighter back in 1936 and today Zip is the most recognised and trusted brand in the ignition sector. Their comprehensive range not only offers a wide range of fire lighting solutions, including cubed, wrapped, odourless and natural options, it also includes charcoal, firelogs and a range of ancillary products to fulfil all home fire requirements. Zip claims brand leadership of the solid firelighter category, with a 39% value share (Source: ACNielsen, MAT, w/e July 10, 2011). Safe, clean and easy to use, Zip’s high quality firelighters are ideal for home fires and BBQ’s. As they are so powerful, they delivery consumers excellent value for money and will light fires first time, every time. The Zip ‘Croí na Tine’ fire log continues to rapidly grow in market share and consumer popularity. This innovative new formula is 100% natural, grown from 100% Irish Willow as its main ingredient. Zip, a Guaranteed Irish brand, is manufactured in Castlebellingham, and is available nationwide. For more information on the Zip range, contact mark.hayden@jaymark.ie or telephone 01 4081400.

including Premium Wood Pellets, Bord making products such as kindling, na Móna Wood Logs and Bord na Móna paper and sticks. It offers the perfect Eco-Friendly Real Logs - all made from solution for consumers who want to naturally renewable resources and build a perfect, real fire quickly and fully CO2 neutral. conveniently. It’s a must-stock for the All products are available through winter season ahead. Allegro Distribution (Tel: 01 858 0600). For those who are short on time but want the warmth and effect of a full real-fire in one step, Firepak is Zip the ultimate ‘complete fire in a bag’ Zip, Ireland’s number one ignition solution. All consumers have to do is brand, continues to drive category light the pack, sit back and bask in growth through innovation and the glow of a perfect fire that will burn for three to four hours. Made of smokeless coal with Irish peat, Firepak is clean to handle and will light with just one match, making it the number one choice in the ‘real fire in a bag’ category. Firepak and FireMagic Firemaker are part of a top quality range of ignition products from Bord na Móna, which also includes Bord na Móna Firelogs, the number one choice among Irish consumers in the firelog category. As the market leader in solid fuels in Ireland, the company’s compact and easy-todisplay range of solid fuel products features the hugely popular line Zip is the most recognised and trusted brand in the ignition sector, and their comprehensive range includes of eco-friendly fuels, a wide range of fire lighting solutions.

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56|Retail News|September 2011|www.retailnews.ie

On the Vine

Rediscovering the

Old World

Jean Smullen examines the opportunities for wines from Spain, Portugal and Italy on the Irish market. POTENTIAL avenues of opportunity in the wine market for the coming year means looking at trends, both new and on-going, within the wine industry in Ireland. There are energetic developments in terms of both wine styles and countries of origin to be explored that will keep independent retailers one step ahead of the game in terms of what to stock. Spain, Portugal and Italy offer immense opportunity in this respect and both their styles and regions are definitely worth taking a closer look at. So what is selling on the Irish market? Sales of Australian, Spanish, Italian, New Zealand and Portuguese wines grew in 2010, with Spain growing by 1.6%, Italy by 1% and Portugal showing modest growth of 0.02% (Source: Irish Wine Association May 2011). This month, we’re focusing on European wines, specifically those countries leading the way in terms of growth: Spain, Italy and Portugal.

Italy

Let’s start with Italy and Pinot Grigio. Italian Pinot Grigio is driving a substantial portion of European white wine

sales. This is backed up by the statistics from Nielsen, whose MAT data to March 2011 show that sales of Italian wines across the board in the off trade increased by +24.1%, led primarily by the sale of both Pinot Grigio and Prosecco, the two wine styles of the moment. Pinot Grigio sales were only surpassed by New Zealand Sauvignon Blanc, with Italy emerging as one of the few European countries to substantially increase its off trade share of the Irish wine market. Prosecco too continues to shine, as the Irish consumer chooses this sparkling wine style as a recession boosting answer to Champagne. Italy did not get involved in targeting the export market until the 1980s. The co-operative movement was very strong up until then and many of the wines produced were fairly basic. The American market revolutionised winemaking in Italy. The large Italian immigrant population drove demand for Italian wine in the USA and this resulted in the formation of many small, high quality single estates, who found a key market to sell to. Having established themselves in the US, they then went on to target all the key global

Wines from Italy, Portugal & Spain Under €10 2010 Torres Vina Sol DO Penedes €9.49 (Findlater Wine & Spirit Group)

and Merlot, this wine ticks all the quality boxes. Offers very good price/quality value.

Torres Viña Sol is primarily Parellada, a traditional Catalan white grape variety. It performs well in the Upper Penedès, where the vines perform best under pressure in poorer soil. It is an aromatic variety, here vinified as a single variety to produce dry, light, delicately fruity, aromatic wines with moderate alcoholic strength. A different style of Spanish white, offering something unique.

2006 Don Carlos Cosecha DOC Rioja €7.99 (Greenlea Wines) This is a Rioja Viña Joven (young wine) made from 100% Tempranillo. The wine brand Don Carlos is exclusive to the Boyne Valley Group, who distribute it through their wine arm, Greenlea Wines. This is a good value entry level Rioja wine. The brand is strong, with a good association with their Olive Oil range. Worth a look!

2005 Gran Fuedo Crianza DO 2009 Canti Chardonnay/ Navarra €8.99 (Ampersand) Pinot Grigio Veneto IGT €7.80 (Gleeson Chivite is the big daddy of the Navarra Incorporating Gilbeys) region. A family owned estate in Navarra, the region beside Rioja that produces wines very similar in style, this is modern Spanish winemaking. Made from a blend of Tempranillo, one of Spain’s key red grapes, blended with a little Cabernet Sauvignon

Canti originated in Piedmont, and is today one of the biggest Italian producers. The fruit is sourced from growers in many regions. This is a blend of Chardonnay and Pinot Grigio: the ripe melon fruit

Chardonnay character is blended with the slightly more acidic Pinot Grigio. A good entry level commercial wine, this is widely available and is a ‘must stock’.

2009 Pink Elephant Vinho Regional Tejo €6.99 (10 International) This is one of Portugal’s new wave Rosé wines. It has been dubbed the Mateus Rosé for a new generation. Pink Elephant is made by José Neiva of DFJ Vinhos of Estremadura with Australian David Baverstock, whose main work nowadays is Esporão in the Alentejo. Touriga Nacional of the Douro, the juicy Castelão that is Portugal’s most planted variety, the Dão grape Alfrocheiro and Cabernet Sauvignon are all blended together here. This is a specially-designed pink wine made exclusively from deliberately freerun juice, astounding value and a very well made wine.

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On the Vine For That Special Occasion 2006 Tignanello Toscana IGT €69.99 (Findlater Wine & Spirit Group) Tignanello is made exclusively from the vineyard of he same name in the Antinori Estate in Tuscany. This was the first Sangiovese to be aged in barrels, the first modern Italian red wine to be blended with non-traditional grapes e.g. Cabernet Sauvignon. Tignanello was first produced by the Antinori family in 1970. Because it was blended with French grapes, it was only given the status of table wine. This wine revolutionised wine-making in Italy. The 2006 vintage is made from a blend of 80% Sangiovese, 15% Cabernet Sauvignon and 5% Cabernet Franc. It is, quite simply, magnificent. For anyone wanting to educate themselves about top quality Italian wine-making, this is the wine to try. markets. Many of us in Ireland will remember the litre bottles of very basic Soave and Valpolicella with a screw cap closure that dominated the market here in the 1970s and 1980s. All that has changed drastically, however. Italy now has 240 zones officially classified as DOC or DOCG (their quality wine rating). In addition, they also make some extremely good IGT wines, Vino da Tavola con Indicazione Geografica, in theory ‘simple’ table wine but with a geographical description and (optionally) specification of vintage and grape variety. In practice, the category is much used for all wines, of whatever quality level, that do not fit the local DOC criteria.

Spain

Although Spain has the largest area under vine of any EC country, production figures for wine are lower than those of the rest of the EU, partly because of the dry climate and partly because irrigation is forbidden by law, except in ‘experimental’ plantations. In addition to this, many Spanish vineyards are growing vines which are over 40 years old and therefore producing smaller yields. A good deal of work is now going on in the vineyards, with new vine varieties and new training, pruning and rooting techniques. In recent years winemakers have been quick to take new technology to their bodegas and many of the most modern wineries in Europe are now to be found in Spain. It should also be noted that the key grape varieties driving wine making in both Mediterranean France and

Spain are Spanish. Grenache is a Spanish grape known in Spain as Garnacha. Mourvedre is also Spanish known as Monastrell and let us not forget the incredible white grapes, Godello or Verdejo, or the red Mencia from the Castille y Leon region, now making such innovative wines.

Portugal

Portugal’s two main strengths are the diversity of its climatic regions and its wealth of native grape varieties. The coastal wine regions are strongly influenced by the Atlantic, the moderating effect which diminishes rapidly as you move inland. As a result, light fresh flavoured dry white wines are produced in close proximity to full bodied reds and rich, fortified wines. Added to this are Portugal’s unique and varied grape varieties: from the wild berry fruit characters of Touriga Nacional, Baga and Castelao to the distinctive white wines made from the spicy Fernao Pires, the delicate Loueiro or the floral scented Rupeiro. Portugal has more than 12 different wine regions, including the island of Madeira, with approximately 50 DOC’s within those regions. Like other European countries, including Spain, Portugal does fare well in terms of the identification of its wine styles. What the consumer does not realise, perhaps, is that Portugal has been demarcating its best wines since the thirteenth century, and had its own appellation controlee system in place almost 200 years before the French.

Wines from Italy, Portugal & Spain Over €10.00 Mateus Rosé n/v Sparkling €15.49 (Findlater Wine & Spirit Group) The Mateus Rose Sparkling Brut Rose is a non vintage drying sparkling wine. Made in a youthful fresh contemporary style from the Baga grape, this is another new development in the brand’s range of rosé styles. Baga is the most widely planted red grape variety in the Bairrada region in Portugal. It is know for both its high levels of acidity and tannin. When vinified as a Rosé, this grape variety lends a fresh acidity and strong character to the wine. A great alternative to Prosecco.

it has softer tannin. In the Alentejo region, it is know by the name Aragonez.

2005 Raimat Abadia DO Costers del Segre €11.49 (Barry & Fitzwilliam) This is another example of modern wine making from Spain. The wine is produced by the Codorniu group, one of Spain’s best known Cava houses. This is a still red wine from a small DO to the west of Penedes. Raimat is a quality Spanish brand name. This wine, made from a blend of Cabernet Sauvignon, Merlot and Tempranillo, offers something slightly different from one of Spain’s up and coming wine regions.

2009 Monte de Peceguina IPR Alentejo €17.95 (Grace Campbell of Dublin)

2008 Tommasi Valpolicella DOC €11.99 (Cassidy Wines)

This is cutting edge Portuguese winemaking from Alentejo. Herdade da Malhadinha Nova is an innovative family estate transformed by its new owners, producing some of the best commercial wines being produced in Portugal at this time. This wine is primarily made from Aragonez, one of Iberia’s most famous grape varieties. It was born in Spain in the Rioja region where it is called Tempranillo. It is an early ripener, which means

Quality Valpolicella has shed its raffia covered bottle image and is now known for top quality red wines from the Veneto region in Italy, made from a blend of three Italian red grape varieties, Corvina, Rondinella, and Molinara. Tomassi is one of the region’s big producers. The quality is there and this is a very good example of a well made Valpolicella from this region.

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Sauces New, authentic flavours are fuelling growth across the sauces category.

That’s Saucy!!! favourite and is the best selling tomato ketchup brand in Ireland with a 58.7% value share (Source: ACNielsen, June 2011). Heinz Top Down Tomato Ketchup, with its vibrant labelling, highlighting provenance of the tomatoes used in its famous recipe and its natural quality, is available in a variety of sizes and formats, including Top Down, Glass and Squeezy. Heinz Top Down Tomato Ketchup offers all the taste of Ireland’s favourite tomato ketchup but with the added benefit of its no mess, no waste, stay-clean cap. The Heinz Tomato Ketchup range, in keeping with increasing consumer demand, also includes Reduced Sugar & Salt and Organic varieties. Heinz Salad Cream and Heinz Tomato Ketchup Barbeque Sauce has been enjoyed by ranges remain a family consumers around the world for more than 120 favourite for barbeques years and is sold in over and dining indoors all year round. Heinz 150 countries.

THE competition within sauces, dressings and condiments intensified in 2010, according to Euromonitor’s latest report into the sector. Promotional offers have become the norm, as consumers expect value on every item they buy, especially when it comes to home cooking, as starkly lower prices justify eating at home rather than dining out. Product authenticity (in terms of origin or ingredients) is becoming a determining factor in the purchasing decisions of Irish consumers, who are increasingly looking to create authentic restaurant-style cuisine at home, and this is extremely evident in the sauces sector. The outlook for sauces is good, with Euromonitor predicting growth in both value and volumes over the next four years, with the sauces, dressings and condiments category expected to grow to €211m in 2015.

Heinz

Heinz Tomato Ketchup is undoubtedly the world’s number one sauce brand. Its unmistakeable flavour has been enjoyed by consumers around the world for more than 120 years and is sold in over 150 countries. Heinz Tomato Ketchup is an Irish household

Salad Cream Heinz Salad Cream: a yearoffers round family favourite. regular, light and extra light varieties in a range of formats, including handy Top Down. The Heinz BBQ Sauce range offers a choice of two varieties in handy Top Down format, Original and Hot ‘n’ Sizzling, both of which are delicious accompaniments for both red meat and chicken all year round. Also from Heinz are the HP range of Brown and Barbecue sauces which make a popular addition to any household’s sauce repertoire. Also available in a handy Top Down pack,

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Sauces HP is the only Brown Sauce on the market to offer stay-clean technology while still offering the distinctive HP fruity flavour.

Uncle Ben’s

Uncle Ben’s sauces offer a wide range of inspirational meals from around the world. Perfect for busy families, Uncle Ben’s products contain no artificial HP is the only Brown colours, Sauce on the market flavours, to offer stay-clean preservatives technology while still or monosodium offering the distinctive glutamate HP fruity flavour. (MSG). With healthier eating and lifestyles increasingly driving meal-planning and purchasing decisions, Uncle Ben’s provides consumers with great tasting, healthy, high quality products that can be ready in minutes. In terms of market share, Uncle Ben’s sauce remains the number one brand leader within the ethnic food category, claiming 22% market share of the ethnic sauce category and spanning Oriental, Indian and Mexican cuisines

(Source: ACNielsen Value Share, MAT, needs to make the ‘Perfect Fajita’ at July ’10). Uncle Ben’s is also Ireland’s home, whether you’re a first-timer or favourite rice brand, with over 57% an expert in the kitchen.” value share of the rice category. Mars’ By using Discovery’s extensive best-selling lines include their Sweet & range of tasty products, which are Sour and Curry sauce lines, along with distributed by BR Marketing, to the category leading Express Rice and retailers nationwide, and its simple Boil in Bag rice products. three steps process (Spice it up! Top The latest addition to the Uncle Ben’s sauce family is the ‘Stir Fry’ range, which provides consumers with high quality stir fry sauces that can be prepared with minimal effort, meeting consumers’ needs for speed and convenience, without compromising on taste. Since its launch, Uncle Ben’s Stir Fry has performed very well, driving value sales growth and introducing new consumers to the stir fry category: year to date, it is currently delivering volume sales Discovery Foods is spicing things up this September as it launches an intensive consumer marketing campaign growth of 11%! to promote The Perfect Fajita in time for Mexican Uncle Ben’s offers Independence Day. great value for money solutions for all consumers. Their breadth of range, it up! Wrap it up!), families can add coupled with the high quality of the flair and flavour to make any mealtime Uncle Ben’s products, ensures that exciting. Discovery is also running consumers can get a great value a consumer competition, with over meal for their families, while not €500,000 worth of home entertainment compromising on its taste or quality. prizes to be won.

Discovery Foods

Discovery Foods is spicing things up this September as it launches an intensive consumer marketing campaign to promote The Perfect Fajita in time for Mexican Independence Day. “We’re excited to be running a number of promotions and competitions across the main national media for the first-time to encourage consumers to celebrate Mexican Independence Day the Discovery way on September 16,” enthused Sarah Hughes, Brand Manager at Discovery Foods. “Irish tastes have expanded in recent years, as more consumers are eating Mexican food. The Mexican food category is growing significantly and Uncle Ben’s sauces offer a wide range of inspirational meals our product offering has from around the world. everything a consumer

Lakeshore

Lakeshore’s range of ‘squeezable’ products, from Boyne Valley Group, match the current consumer demand for ease of use and maximum convenience at affordable prices. Lakeshore was launched in 1982 and since then its range of condiments has been renowned with consumers, who have long enjoyed Lakeshore’s range of top quality dressings, marinades, mustards and sauces. Lakeshore’s reputation for impeccable quality and detail in product formulation and production is continued with the ‘squeezable’ range of products, with only the finest quality ingredients used. This extension to the Lakeshore brand is being backed by media and in-store extra fill promotions, and is sure to be a winner with both consumers and retailers, aided by display units that will maximise the in-store visual impact of this enticing range from Lakeshore. The range includes: Tantalising Tomato Ketchup, made from

60|Retail News|September 2011|www.retailnews.ie

Sauces deliciously juicy tomatoes, which is available in upsidedown squeezable bottles; Fruity Brown Sauce, with extra ingredients that help to ensure it’s mouthwateringly tasty and tangy; Superb Salad Cream is a real winner, with a superbly creamy and full flavour, available in a 410g size; and Fiery Chilli Sauce, which comes in a 450g size and really packs a punch. The Lakeshore range also includes mustards, now available in the squeezable range. Lakeshore Wholegrain Mustard with Honey is a crunchy mustard, bursting with flavour with a twist of honey for a naturally sweet taste, and comes in a 210g pack. Lakeshore Extra Hot Irish Mustard has an intensely spicy taste, and is available in a 220g pack.

to heat, the Hot & Spicy range allows consumers to ‘spice up’ up suppertime, recreating the restaurant experience at home, in only 30 minutes,” noted Tracy Hughes, Marketing Controller at AB World Foods.

Blue Dragon

Chinese New Year 2011 saw Oriental food brand Blue Dragon embarking on a multimillion euro relaunch. Building upon the brand’s leading market position, the campaign encompasses a new brand identity, but also innovative new products and heavyweight consumer and shopper support, The Lakeshore including a national squeezable range TV advertising campaign includes Tantalising Tomato Ketchup, made and an integrated communications from deliciously juicy programme. tomatoes. The Blue Dragon re-launch is designed to drive interest amongst new and Patak’s existing consumers in the Oriental Iconic Indian food brand, Patak’s is food category, whilst enhancing Blue spicing up mealtimes with its Hot & Dragon’s credentials as the authentic Spicy range Oriental food of sauces, brand. launched in response to the growing consumer demand for hotter food. Featuring three variants, Hot Tikka Masala, Extra Hot Vindaloo and Extra, Extra Hot Phal, the Hot This will be achieved through & Spicy range greater range cohesion and complements improved brand awareness, both the current on-pack and on-shelf. portfolio of The brand’s packaging has been Patak’s sauces refreshed with a new vibrant and and provides authentic Oriental tapestry design. more options The use of a new logo, with strong for consumers. Oriental cues, is intended to improve “With brand awareness, connection and consumers’ The Extra, Extra Hot recognition amongst consumers, palettes Phal sauce from whilst increasing purchase intent and becoming more Patak’s, part of their ensuring strong impact on-shelf. new Hot & Spicy range. acclimatised

A key component of the re-launch saw Blue Dragon entering the cooking sauce category with the launch of six popular and authentic Cooking Sauce flavours - Chow Mein, Sweet Chilli, Sweet & Sour, Chinese Curry, Thai Green and Thai Red – including the market’s first ever Chow Mein and Chinese Curry Cooking Sauce variant. These classic flavours, housed in bespoke pagoda glass jars, have generated excitement and enhanced authenticity within a key sector currently dominated by mainstream brands. Blue Dragon Stir Fry Shots, comprising six unique flavours – Spicy Satay, Sweet Sour, Chilli Coconut, Sweet Chilli, Wasabi Plum & Szechuan Pepper – are perfect for consumers seeking a more intense flavour experience. Their stand-up pouch ensures on-shelf prominence and the tear opening will guarantee ease of use. Blue Dragon also introduced four new Oriental paste variants, Chinese, Thai Laksa, Thai Red and Thai Green, containing all the essential ingredients required to create an authentic and flavoursome dish. The range’s varying flavour profiles and heat levels make Blue Dragon Pastes perfect for timid and adventurous cooks alike, and their bespoke, larger jar size also delivers stand-out on-shelf. Blue Dragon also launched a new range of Sticky Sauces this year, available in four restaurant-

Blue Dragon Stir Fry Shots are perfect for consumers seeking a more intense flavour experience.

classic variants - Chinese BBQ, Char Sui, Peking and Teriyaki. The range provides consumers with a convenient short-cut to replicating a range of Oriental appetisers at home by basting or marinating, something which the ambient Oriental category doesn’t currently offer.

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Market News National Organic Week 2011 NATIONAL Organic Week, coordinated by Bord Bia and funded by the Department of Agriculture, will take place from September 12-18. The week-long campaign, now in its seventh year, aims to raise awareness of organic produce, how to recognise it when shopping and where it can be purchased. To celebrate National Organic Week 2011, producers, retailers and farmers’ markets will host more than 50 events nationwide throughout the week, including organic farm walks, cookery demonstrations, organic BBQs, harvest feasts and picnics, complementary in-store sampling and tastings allotment tours and talks, while the National Organic Awards will also take place. See www.bordbia.ie for more information.

Country Crest Extends Range FOLLOWING on from the successful launch of Country Crest’s From the Orient range earlier this year, Country Crest, based in Lusk, North County Dublin, has further expanded its From the Orient range, adding two new noodle lines, Chicken Chow Mein and Schezwan Chicken. The company has also increased its From the Farm range of meal accompaniments to include the deliciously simple Baker Melts – Irish Rooster baked potatoes, loaded with cream cheese, peppers and chorizo or the alternative option of cream cheese and spinach – and for the first time, Twin Packs, Baton Carrots & Baby Potatoes, Potato Croquettes & Breaded Mushrooms.

Connacht Gold Wins at Food Oscars CONNACHT Gold has won back to back awards at the prestigious UK & Ireland Great Taste Awards, also known as the Oscars of the food world. Connacht Gold’s Softer Butter was awarded a Gold Star from over 7,400 entries, repeating the success of its garlic and herb butter in 2010. “We are thrilled to have won back to back accolades at the Great Taste Awards, where the judging criteria is extremely rigorous,” said Helen Brophy, General Manager of Connacht Gold’s Consumer Foods Division. “To be recognised once again and with a second product is great testament to the work we are doing here in creating high quality, natural produce that, above all, is full of flavour and taste.”

Ulster Bank Provides €500k Funding to Cashel Blue Cheese

PICTURED at the new, state-of-the-art Cashel Blue Cheese factory premises are: Tom Leahy, Regional Director, Ulster Bank, Louis and Jane Grubb, J&L Grubb – producers of the world renowned ‘Cashel Blue Cheese’ product; and Frank McGrath, Ulster Bank. Ulster Bank has provided over €500,000 in funding to Tipperary based food company, J&L Grubb Limited, allowing the company to construct and furnish a new, state-of-the-art factory premises at Beechmount, Fethard, Co. Tipperary. The deal has enabled the company to upgrade their production facility from an old farmhouse style premises to a new 25,000 square feet factory premises.

Pretty in Pink: Egg Design Wins Award THE unique packaging of an innovative new product launched by a free range egg farm in Cavan has been chosen as a winning exhibit by the world body for professional design. The new O’Egg Free Range White Egg packaging from local egg company Clonarn Clover has been selected for display by Icograda Galleria International Design 2011. “We were delighted to hear about the win. It’s great to have some recognition because a lot of hard work went into creating and launching the O’Egg brand,” said Clonarn Clover Managing Director, Margaret Farrelly, whose pink packaging, designed by Persona Design, helped to raise money for Action Breast Cancer. See www.oegg.ie for more information.

Discovery Celebrate

Mexican Independence Day

DISCOVERY Foods are spicing things up this September as they launch an intensive consumer marketing campaign to promote The Perfect Fajita in time for Mexican Independence Day. “We’re excited to be running a number of promotions and competitions across the main national media for the first-time to encourage consumers to celebrate Mexican Independence Day the Discovery way on 16th September,” said Sarah Hughes, Brand Manager at Discovery Foods. By using Discovery’s extensive range of tasty products, which are distributed by BR Marketing to retailers nationwide, and its simple three steps process – Spice it up! Top it up! Wrap it up! - families can add flair and flavour to make any mealtime exciting. Discovery are also running a consumer competition with over €500,000 worth of home entertainment prizes to be won.

62|Retail News|September 2011|www.retailnews.ie

Shelf Life AS it approaches its second birthday, Love Irish Food has a new marketing campaign, a new Programme Director, and a second wind carrying it into its next phase of growth. Having begun in 2009 with 28 members, the Irish brand movement has enjoyed undeniable success, growing to a membership today of almost 80 brands from 58 companies. Its new Executive Director, Kieran Rumley, got started with the launch of a €350,000 communications campaign this August, as well as a new wave of activity to drive the logo’s call to action among Irish shoppers and grow its membership even further. The campaign, which runs to January 2012, features the tagline ‘Works for all of us’, promoting the purchase of Irish food brands as a constructive action, empowering consumers to do something good. IRISH Distillers Pernod Ricard have released their results for the financial year 2010/11, with Jameson reaching sales of over 3m cases globally, with more than 1m cases sold in its most important export market, the USA. Jameson volume growth was +17% for the year, one of the brand’s strongest performances ever, with value growth at 20%. In Ireland, the Irish Distillers portfolio reflected the trend away from the on trade, (-6% for spirits in 2010/11), but recorded some encouraging brand and category performances during the year. Jameson posted a very strong performance, experiencing double digit growth and growing share in Ireland; Powers Irish Whiskey increased sales year on year and gained market share; Absolut Vodka continued to grow at a tremendous pace (+74%); two new whiskeys – Powers Johns Lane, and Midleton Barry Crockett Legacy – were launched to great acclaim, and expanded the company’s offering.

THE Corona Cork Film Festival will be held in Cork from November 6-13, 2011. Now in its 56th year, the festival is a local initiative dedicated to bringing together established and firsttime filmmakers in a forum to celebrate the various elements of film in a sociable and fun environment. See www.corkfilmfest.org for more information.

SUDS for Simon is a new joint initiative between Maxol and the Simon Communities in Ireland, which took place at selected participating Maxol stations for a week in late August/early September, whereby €2 from every car wash was donated directly to the Simon Communities in Ireland. Model Nadia Forde is pictured at the official launch of the ‘Maxol Suds for Simon’ carwash initiative, with Patrick Quinn of Simon and Brian Donaldson, General Manager, Marketing and Retail, Maxol Ireland. CONOR Hayes has recently been appointed as Managing Director of Delivered Business for the AIM Group, one of Ireland’s largest privately owned wholesale and retail businesses. The AIM Group operates a number of well known retail brands and owns the master franchise for supermarket chain, Iceland. The Group has recently embarked on an ambitious growth strategy in both its retail and wholesale divisions. LYONS Tea, was recently awarded a coveted Gold Star for Lyons Gold Blend at the International Great Taste Awards 2011. “We are delighted to have been awarded a Gold Star, proving that our Gold Blend tea is of the finest quality,” noted Lyon’s Tea Master Blender, Phil Moody. “In addition to the correct blend of quality ingredients, brewing is a critical part of achieving the best cup of tea. Most Irish people (72%) tend to let their tea brew for under a minute, but by allowing it to brew for slightly longer, 1-2 minutes, the flavours are released, making for a better cup of tea. The unique shape of our pyramid tea bags means the tea leaves have 50% more room to move, making for an even better brew.” BEST wishes from Retail News to Justin Fuller, who has recently opened a sweet shop in Trim, Co. Meath. Justin set up his new business in recessionary times, selling lots of traditional sweets by the 1/4 lb, many of which are sourced from Navan Co. Meath, along with favorites like homemade popcorn, also sourced from Co. Meath. “Our aim is to help other local businesses, as well as helping ourselves,” explains Justin. The Sweet Shop also run an online store: see www.thesweetshop.ie for more details.

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