Retail News JulyAugust 2009 by Retail News

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July/August 2009

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July/August09Contents

www.anuga.com

■ inside view

The Irish Question With the economy showing little signs of recovery and each passing week bringing news of more job losses, the outlook for Ireland’s indigenous agri-food sector isn’t exactly bright. And yet, Irish food and drink products are on a par with the best the world has to offer, with many being category leaders on your shelves. Supporting Irish suppliers isn’t just a case of quasi-nationalism or protectionism, however: it also makes good business sense, both in terms of keeping the products consumers want on-shelf and benefiting the wider economy. When consumers buy Irish groceries, not only are they guaranteeing that they are getting top quality produce, but they are also helping to ensure the future of Ireland’s agri-food sector, which accounts for one in eight jobs throughout the country in direct and indirect employment. With this in mind, RETAIL NEWS presents a special feature on the quality, range and value of home-grown grocery products (Page 25-37), while Ken McIntyre-Barn, General Manager of Glendinning in Ireland, advises Irish companies on how to survive and thrive in the recession (Page 22). One supply company bucking the trend is Waterford’s Dunhill Cuisine, whose turnover, sales and profit are set to grow this year: we find out why (Page 20). Elsewhere, Paul Kerrigan, Delivered Retail Director, Musgrave Wholesale Partners, reports on the continued growth of Daybreak (Page 38), we examine the area of waste management and how it can save you money (Page 41) and we analyse the area of security and the difference it can make to your bottom line (Page 60).

“Over 50 years Kathleen Belton, Editorial & Marketing Director.

serving the Irish grocery trade.”

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Managing Director: Fergus Farrell Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com Editor: John Walshe

johnwalshe@tarapublishingco.com

Chief News Reporter: Pavel Barter

Wine Correspondent: Jean Smullen

Advertising Manager: Aaron Stewart

T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2. Tel: (01) 2413095. Fax: (01) 2413010. Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Subscription to Retail News: €110 plus VAT Email: tracy@tarapublishingco.com Origination by: Rooney Media Graphics

Koelnmesse Ltd. 4th Floor 205/207 City Road London EC1V 1JN

Printed by: Graham & Heslip

Reproduction without written permission is strictly prohibited.

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Contents July/August 2009

News 4Tobacco Legislation Causing Confusion in the Trade.

thanks to hard work, good value and the support of Musgrave.

Security 60The benefits to your bottom line of installing an effective security system.

CSNA AGM 18At its recent AGM, the Convenience Stores and Newsagents Association focused on some of the burning issues for the trade in 2009.

5 5ABFI Welcomes Alcohol Report.

Fresh Convenience Foods 20Dunhill Cuisine is

7Magazines Ireland Launches; Tesco Extends Price Cuts; UK Consumers Shop for Quality; Union Reaches Truce with Tesco.

8NCA Survey Reveals Grocery Prices Dropping. Shop Profile 16Mike Tracey’s Daybreak store in Limerick City is proving a massive success,

Delivered Retail Director, Musgrave Wholesale Partners, on the changing face of Daybreak.

Ireland’s Top Selling Wines 52A special promotion

Special Report 22Ken McIntyre-Barn,

focusing on some of the best-selling wines throughout the country.

General Manager of Glendinning in Ireland, offers strategies for FMCG companies to survive the recession.

Ireland’s Own 25Stocking home-produced groceries on your shelves has never been more important for the continued success of Ireland’s agri-food industry and meeting consumer needs.

gossip from the trade.

The Retail News Interview 38Paul Kerrigan,

bucking the recession and thriving amid the current economic gloom. Edward Spelman, Managing Director, tells us why.

6Clean Bill of Health for Retail Sector; Retailers Milking Dairy Industry?

Shelf Life 64All the latest news and

On The Vine 57Grow your wine sales with The Guru; Wine Market Update 2008; Febvre Launch ‘Wine For 2’.

Forecourt Focus 58Since its redevelopment in January of this year, Sean Kinsella’s XL Stop & Shop forecourt in Wexford Town has seen a sales surge.

44 Regulars 10 Industry News 51 Drinks News 63 What’s New Sectoral Reports 41 Waste Management 44 Back To School: Stationery 48 Back To School: Best Sellers 54 Paper Products 3

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Tobacco Legislation Causing Confusion NEW tobacco legislation is causing some confusion amongst retailers, RETAIL NEWS reports. Interviews with various parties involved in implementing the new rules, which ban the advertising of tobacco in shops, also claim the restrictions could push consumers toward the illegal trade in cigarettes. As part of the ban, new provisions of the Public Health (Tobacco) Acts 2002 and 2004, cigarettes must be hidden in closed, plain containers, with cigarette signage removed from display. Ireland follows in the steps of similar legislation in Canada and Iceland, but it is the first EU nation to ban the display of tobacco products. Emma Fitzgerald of the Office of Tobacco Control (OTC) told RETAIL NEWS that retailers have, on the whole, been positive about the changes, and feedback from environmental health officers suggests most retailers are compliant. However, some outlets appear to be seeking quick-term solutions: covering up their cigarette display units with paraphernalia including shower curtains, black sacks, curtains and cardboard. According to Derek Mooney, Sales Director of JTI (Japanese Tobacco International), the former Gallaher Group, which handles brands such as Silk Cut, B&H and Camel, over 70% of JTI retail customers are now compliant: “However, a number still have open units that do not comply with the legislation.” Tara Buckley, RGDATA Director General, has also noticed incidences of non-compliance. “My understanding is that some of the small players, with no connections to the tobacco companies, have done their own thing to cover up the packages. One of the people that work for me said their local shop had black plastic bags hanging up over the cigarette gantries. Most of the other members were sorted, and had new display cabinets before the deadline came into place. Most of those were supplied by the cigarette companies for no charge.”

We posed the question to Emma Fitzgerald in the OTC as to the validity of shielding display units in this manner. “Unfortunately, that doesn’t fit the criteria of the legislation,” she said. “It has to be in a closed container and out of view. Some Options like this ‘Venetian blind” covering do not comply with the new legislation. places are putting shuttered doors on them, that close. But a shower curtain, black sack or curtain? Absolutely not.” Although many retailers have quietly adapted to the new rules, smaller stores have had to fork out around €1,000 - the price of an automatic gantry with six sliding doors - while others claim HSE officers have been giving retailers mixed messages. All tobacco products must be hidden in plain, closed containers “Most of the stores in Ireland sidered sufficiently profitable or stratehave electronic vendgic, they can suffer.” ing machines in place for the last 10 Some cigarette companies have been years,” said Deirdre Healy, Corporate actively involved in helping trade partCommunications Manager, John ners. Since February 2009, for example, Players. “Those vending units had JTI visited over 3,800 outlets, removing sealed containers anyway. So most of advertising fascias and pack displays those stores were fine. It’s the small from retail vending machines and shelvshops that are in difficulty. Some of ing bays. All other point of sale advertisthose shops have had to contact local ing was removed in June. Although this carpenters to be compliant. It’s a bit of is a costly measure, it is to ensure coman unlevel playing field.” pliance before the deadline. Meanwhile, Vincent Jennings, Chief Executive John Players issued guidelines for of the CSNA, adds: “Even the people retailers in the first few months of the who have a relationship with the tobacyear, ensuring their retailers were comco companies don’t necessarily get free plaint. The government, on the other cabinets. If the relationship is not con-

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hand, put notices into papers six weeks before the July 1 deadline, said Healy. How will the regulation affect cigarette sales? Tara Buckley said RGDATA had yet to receive feedback from members, although the test will be how tourists and customers who are not regulars will respond. Martin Mulligan, who owns a Londis store in Athlone, contends the regulation will affect sales because of the extra time it takes to get cigarettes for a customer. Furthermore, he claims, people are now selling cigarettes on the streets for €4 a packet or three packets for €10. “They’ve got no restrictions. That’s galling,” he said. Indeed, the retail and tobacco industries believe this legislation will drive more sales through illicit channels. An estimated 20% of all cigarettes consumed in Ireland are sold illegally, at a loss of €487m in retail turnover. “Over the past months, we have received endless reports of illicit cigarette sales nationwide that are allegedly being carried out in street markets and doorto-door, amongst others,” says JTI’s Mooney. “More recently, we have been notified of counterfeit cigarettes being sold in a number of retail outlets, which are subsequently under investigation. We fear that the display ban may cater for the infiltration of counterfeit cigarettes in legitimate retail outlets.” Chloe Campen, Corporate Affairs Manager, PJ Carroll, adds: “That’s the concern we have as an industry: you’re just blurring the lines between the legitimate and illegitimate trade. Go to markets and cigarettes are on open display. There’s a complete imbalance between the regulations that apply to legitimate retailers and the illicit traders. I think there’s also something psychological about going into a shop and not seeing the product. The transaction doesn’t feel like what it used to be. This could drive consumers to buy illegal cigarettes.”

Under the new regulation, fines also appear skewed. In the first three months of this year, the average fine for handling illegal cigarettes was €423. Under the new regulations, which are enforced by environmental health officers, a retailer found displaying or advertising cigarettes can be fined up to €3,000 and/or get six months in prison. For their part, however, the OTC do not claim responsibility for clamping down on the illegal trade of cigarettes. “We’re not involved in that aspect,” says Fitzgerald. “It’s very much an issue dealt with by the customs and the Gardaí.” Retailers do have one recourse, however. They are permitted to show a customer intending to purchase a tobacco product either one packet only of each tobacco product sold or a reproduction thereof, or a pictorial list consisting of visual products sold, with some provisions (images cannot be greater that the actual packet size, the list cannot contain more than one image of the same product and it must contain the mandatory health warnings). The pictorial list, however, cannot be left on display. The Irish Tobacco Manufacturers Advisory Committee are compiling such a menu for distribution to retailers. But even though retailers are now required, under law, to comply with the regulations, some still wonder if it was really needed in the first place. “The idea behind this is that people who see cigarettes will buy them, but evidence suggests that’s not the way tobacco works,” says Deirdre Healy of John Players. “It’s not an impulse purchase - you don’t suddenly think, I’ll start smoking because of that signage. It won’t make any difference to smoking whatsoever.” For more information on the new regulations, phone the OTC helpline: 189033100

ABFI Welcomes Alcohol Report

THE Director of the Alcohol Beverage Federation of Ireland (ABFI), Rosemary Garth, has welcomed the publication by the Department of Health, of the 2008 report of the Alcohol Marketing Communications Monitoring Body. Garth said that the report comprehensively endorsed the drinks industry’s compliance with the codes of practice on Rosemary Garth, ABFI Director. alcohol advertising and marketing that the industry has agreed with Government, and demonstrated the industry’s determination to market its products in a responsible manner. “The AMCMB report is a ringing endorsement of the drinks industry’s overall level of compliance with the placement and sponsorship codes that have been put in place in recent years to ensure that alcohol advertising and sponsorship is at all times appropriate and responsible,” she noted. “As the Chairman of the Monitoring Body, Peter Cassells, acknowledges ‘The Monitoring Body concluded that there had been overall compliance in 2008 with the Voluntary Codes to limit the exposure of young people to alcohol drinks advertising.’ Where the codes have been breached, remedial action has been taken immediately, and only one actual complaint was dealt with under the codes in 2008.” Garth went on to encourage as many companies as possible to participate in the new Alcohol Marketing Codes Training Programme that ABFI has developed for all marketing and advertising staff. This programme is designed to ensure companies are fully aware of their obligations under the codes to ensure maximum compliance. Major drinks companies such as Diageo, Edward Dillon, C&C, Irish Distillers, and Heineken, have already committed to participate in, the training programme. “The AMCMB report is a vindication of the coregulatory approach that has been undertaken by the drinks industry and Government,” Garth noted. “However, we must all continue to work together in partnership to ensure that standards are maintained and that our products are marketed in a responsible manner.”

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Clean Bill of Health for Retail Sector A NEW Competition Authority report gives the Irish retail sector a clean bill of health. The study into Irish retail revealed that the price difference between the North and the Republic is explained by the high cost of business in the latter, the devaluation of Sterling, and the fact retailers in the Republic are charged more for internationally branded goods. Furthermore, retailers are dropping prices due to pressure from consumers - between January and May 2009 grocery prices fell by over 2% - which is a healthy sign of competition. The report was made at the behest of the Tánaiste and based on data based from over 100 submissions, and a number of meetings with retailers and suppliers. “We felt the retail sector was vindicated,” Torlach Denihan, Director of Retail Ireland, told RETAIL NEWS. “There has been an enormous onslaught on the retail sector for over a year from a range of people who have just been misinformed - who either aren’t aware of the facts, or choose to ignore them. The Competition Authority summarise it in one sentence when they say there is no systemic problem in the sector. Given the sheer number of operators in retail, and the breadth of what they had to look

Torlach Denihan, Director of Retail Ireland

at, we consider that a clean bill of health for the retail sector.” This sentiment was confirmed by the Tánaiste: “We are ultimately reminded, however, that prices are determined by demand and supply conditions. Pricing

decisions, by retailers and manufacturers, are generally made in the context of what consumers are prepared to pay.” However, the report focuses on stark warnings for the Irish economy, due to high taxes, business costs, and other ills. “We agree with the Competition Authority focus on the need for Ireland to get competitive, to regain the country’s loss of competitiveness,” said Denihan. “Clearly, retailers are directly affected by that on two levels. Firstly, it’s more expensive to run a retail business here than in competing jurisdictions. Secondly, it’s more expensive for manufacturers to produce goods here. That puts us, as a country, at a huge competitive disadvantage. “We believe the Government should address these issues and address them quickly, everything from the fact that commercial rates are as high as they are, to the high price of waste disposal, compared to the North. A shop assistant in Dublin is paid 50% more than his or her equivalent in Belfast. There’s a huge problem there and, rightly so, the Competition Authority defined this as a problem and called on Government to provide some remedies and implement them.”

Retailers Milking Dairy Industry? THE dairy industry is up in arms, accusing large retailers of squeezing them dry over milk prices. Jackie Cahill, president of the Irish Creamery Milk Suppliers Association, told RETAIL NEWS that dairies are now under severe pressure over price. “The own brand or private label products are being sold ever cheaper. Whether the retailers want to sell milk cheaper to the consumer or insist on keeping their own margin, it’s now being sold at a price that’s not giving any return to the dairy or to the farmer. Milk is a product that everyone buys and they’re all after cheaper milk, but they’re not doing it at the expense of their own margins,” he argued. Of course, larger supermarkets are increasingly using milk as a loss leader.”If you offer two litres of milk

at an attractive rate, it is enticing for the consumer. Everyone buys milk. Unfortunately, they have taken it to such an extent that they could kill the goose that lays the golden egg. Their margins are being protected. They’re trying to give consumer prices, but it’s at the expense of the supplier and the producer,” he said. Cahill recently returned from Finland, where dairy producers make around 44c per litre, while milk retails in shops for around 80c. “That shows the producer is getting his price and the others up the line aren’t taking an excessive margin,” he said. “I think that illustrates the profiteering that’s here in Ireland.” In Ireland, on the other hand, farmers receive much less. In the 12 months leading up to March 2009, farmer’s pay-

ment for a litre fell 42%, from 38.6c to 21.8c. The average cost to shoppers, on the other hand, rose from €1.112 to €1.128 per litre.

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Magazines Ireland Launches MAGAZINES Ireland is the new name for the association of Irish magazine publishers. “The new name reinforces the unique position Irish magazines play in the cultural, social and economic life in Ireland,” explains John Mullins, Chairman of the organisation. Magazines Ireland represents 43 Irish publishers who together produce over 200 magazines, both consumer and businessto-business titles. There are over 2,000 people directly employed in the magazine industry, with a further 9,000 jobs, such as freelance journalists, photographers and models, reliant on the sector. “Irish magazine publishers contribute over €400m to the Irish economy annually, €100m of which is paid in taxes.

Magazines Ireland has an important role to play to ensure this sector is allowed to develop and expand to its full potential in the coming years,” says Mullins. “Irish readers prefer Irish magazines because the content is more relevant, the products and services featured are available in this market and the prices quoted are in the local currency. We have to build on this and make sure the market conditions, from production and distribution through to retailing and legislation, facilitate the huge potential we know to exist in the magazines sector.”

Tesco Extends Price Cuts can from Ireland, but there is TESCO Ireland has extended a new reality. The new realits Change For Good price cuts, ity is that customers have less initially introduced in its bormoney, so we have to provide der stores, across Dublin, with consumers with the options plans to roll-out these “long and the choices that had them term” price reductions across shopping across the border. the rest of the country in the “Like every other retailer coming weeks. According to on the planet, space is judged Tesco, price reductions of an on what people buy and how average of 22% apply across 12,500 products. Tony Keohane, CEO, much they buy it. It is not in our interest, or anybody’s Tony Keohane, CEO, Tesco Tesco Ireland interest, to have less space on Ireland, noted how the decision the shelf, other than what the product to cut prices is “a massive repositioning of requires to keep it on sale. That’s basic prices for our customers. It’s good news for retailing: that an Irish product, an intercommunities as well, because the evidence national product or a new product has suffrom the border area is that customers are ficient space to stay on sale and to meet now saving about a third on their weekly customer demand.” shopping. Some commentators have suggested “We have stemmed the flow of people that if other supermarket groups were to across the border,” he boasted. “Our carfollow Tesco’s lead, there would be a lo ss parks are busier, our aisles are busier and of up to 100,000 jobs in the Irish agri-food our check-outs are buzzing again: people sector. are back shopping in our stores again. It’s “If everybody follows our line, we will great news for us, great news for consumsave jobs and protect jobs within this ers and good news for Ireland, as well, economy by keeping people shopping in that people are shopping in the State.” the Republic,” argued Keohane. “Our carThe grocery multiple has come under parks have been fuller, our shops have fire from certain quarters, however, who been busier and this is good news for conclaim that the Change For Good campaign sumers and good news for Irish producis not good news for Irish suppliers, a sugers. Tesco is still the biggest buyer of Irish gestion rejected by Keohane. food in the world. Through our business “We are fully committed to the Irish here and in the UK, we export a massive supply base,” he argued. “We are fully amount of Irish food.” committed to sourcing as much as we

UK Consumers Shop for Quality MOST UK consumers are well aware of the economic downturn and are feeling the impact on their daily lives, but are not making wholesale changes to their consumption patterns in the grocery arena, according to a new report from Datamonitor. UK shoppers are not abandoning consumerist lifestyles and retail sales in the UK continue to show a slight increase. Nevertheless, there are a number of downturn-induced attitudinal and behavioral adjustments that need to be acknowledged and acted upon. Lower prices are a big influence on where UK consumers now do most of their grocery shopping. However, the primary influence was ‘the overall quality of products sold’, demonstrating the ‘want-it-all’ attitude of many consumers in the UK.

Union Reaches Truce with Tesco MANDATE Trade Union have stalled planned strike action against Tesco, having reached an agreement to iron out their problems in the presence of a third party, the Labour Court, Gerry Light Mandate Assistant General Secretary, has told RETAIL NEWS. “Both parties met on the brink of the planned dispute and agreed a temporary truce, for want of a better term,” he said. Industrial action had been scheduled for Thursday, July 2, in 19 Tesco stores, regarding the alleged breach of an existing agreement with Mandate over the reduction of workers hours. Mandate’s Linda Tanham added: “Some of our members are losing out on over €100 per week due to unreasonable and unnecessary cutbacks in working hours and it should be remembered that some of these are already low paid workers. This is of particular concern for Mandate when you consider that the company made approximately €250m in profits last year in Ireland alone and over €3.1 billion internationally.” According to Light, Tesco have promised not to reduce working hours, pending the outcome of the third party process. 7

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NCA Survey Reveals Grocery Prices Dropping THE National Consumer Agency (NCA) has published its biannual grocery survey, which shows major reductions in grocery prices since the agencyâ&#x20AC;&#x2122;s last survey six months ago. Dunnes Stores and Tesco prices on branded goods are very close, while the price gap between Aldi and Lidl has narrowed significantly since January 2009, with very little difference between them. Comparing survey results from January 2009 and June 2009, prices in separate baskets of branded goods for Tesco, Dunnes Stores, SuperValu and Superquinn all recorded a decrease. Ann Fitzgerald, Chief Tesco recorded the largest decrease Executive, National Consumer Agency. (comparing prices in January 2009 with prices in its stores included in the Change For Good pricing model), Superquinn the smallest. The survey incorporated two Tesco stores, due to the fact that not all Tesco stores in Ireland had converted to the Change For Good model at the time of the survey. When comparing a basket of 68 branded goods between Dunnes Stores, Superquinn and Tesco (CFG), the difference between the cheapest and dearest basket was â&#x201A;Ź8.54 (4%) up from 1.2% in January 2009. This variation is greater than the difference seen in any of the Agencyâ&#x20AC;&#x2122;s previous surveys. When SuperValu are included, a basket of 58 goods was cheapest in Tesco CFG (â&#x201A;Ź188.98) and dearest in Tesco (Non CFG) (â&#x201A;Ź199.78). â&#x20AC;&#x153;When looking at the own-brand market, itâ&#x20AC;&#x2122;s a very different story,â&#x20AC;? noted Ann Fitzgerald, Chief Executive of the NCA. â&#x20AC;&#x153;The gap between Aldi and Lidl has narrowed. Our survey suggests that pricing between them is now so close that the title of cheapest can swing either way, depending on the selection of goods in a basket. Weâ&#x20AC;&#x2122;re also seeing Tesco significantly narrow the gap with Aldi and Lidl on own brand items. By contrast, Dunnes Stores does not appear to be responding as aggressively in the own brand segment and have fallen behind the competition, coming in 14% dearer than Tesco Change For Good.â&#x20AC;? The survey results were also accompanied with the latest research into Irish grocery shopping habits, carried out by AmĂĄrach Research, which found that: s #ONSISTENT WITH THE .OV $EC RESEARCH IN HAVE CHANGED THE way in which they do their grocery shop since the start of the year; s 4HE GREATEST CHANGE IN SHOPPING HABIT FROM THE PREVIOUS WAVE OF research is the amount of grocery shoppers who are buying less since the start of the year (34% which is an increase of 14% since last wave in 2008). â&#x20AC;&#x153;Price remains the key influencing driver for consumers in choosing where they do their main grocery shop, followed by convenience,â&#x20AC;? noted Ann Fitzgerald, who pointed out that 75% of consumers now consistently shop around for better prices. â&#x20AC;&#x153;Almost 1 in 4 of those who have changed their shopping habits are also spending less. This is down to the fact that they are shopping where it is cheaper and they are buying less.â&#x20AC;? See www.consumerconnect.ie for more details.

Obituary: Gerry Duffy IT was with great sadness that RETAIL NEWS learned of the recent passing of Gerry Duffy, the former president of RGDATA, founder and chairman of the Duffy Group Ltd and a founder member of the Irish Grocers Benevolent Fund (IGBF) and ADM Londis. â&#x20AC;&#x153;Gerry Duffy was an example to all independent retailers and he led from the front,â&#x20AC;? noted current RGDATA President John Foy. â&#x20AC;&#x153;He made a significant contribution to the trade through his involvement with RGDATA, as a founding member of the Irish Grocers Benevolent Fund and as a very successful retailer, heading up a family business.â&#x20AC;? â&#x20AC;&#x153;Gerry put a lot of work into the Benevolent Fund, and he was a very benevolent man,â&#x20AC;? remembers Tim Nolan, Gerryâ&#x20AC;&#x2122;s fellow found of the IGBF. â&#x20AC;&#x153;He always worked really hard and put his heart and soul into it. We remained friends throughout and we never had a harsh word. He did an awful lot of good work. We got a lot of satisfaction out of helping other people, putting something back into a trade which was, and still is, an extremely tough business.â&#x20AC;? Perhaps no more fitting tribute to Gerry can be made than the following poem, written for the occasion of his 93rd birthday: â&#x20AC;&#x153;All the ladies in Terenure Each day could be sure, Of a bargain and a winning smile, As their baskets he did fill, To the sweet ringing of his till, He cajoled (or conned) them all the while, He sold them spuds and bacon And even peas and soup, â&#x20AC;&#x2DC;Til alas ended up as Chairman of the Group. Whilst relaxing in his seat, He drinks his whiskey neat And drags his pipe To his heartâ&#x20AC;&#x2122;s content. And reflects all the while On his life of super style With nought to pay, Not even bloody rent!!! So dear friend, brother and super dad Youâ&#x20AC;&#x2122;ve proved that drink and smoke ainâ&#x20AC;&#x2122;t all that bad.â&#x20AC;? The staff at RETAIL NEWS would like to extend their sympathies to Gerryâ&#x20AC;&#x2122;s family and friends throughout the grocery trade.

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Musgrave Triathlon Launches THE eighth annual Musgrave Triathlon, which to date has raised over €2.5m in aid of the Irish Cancer Society and Our Lady’s Childrens’ Hospital Crumlin, was launched by eightyear-old Jahrea O’Hara (left) Rocky Elsom, former member of the Leinster rugby team and Heineken Cup final man-of-thematch, and seven-year-old Joaquin Shinbach. The triathlon takes place at Farran Woods in Cork on September 5. It attracts over 500 participants every year and it is hoped that the triathlon will raise another record amount in 2009. For more information, see www.musgrave-triathlon.com.

Gala All-Ireland Camogie Championships THE 2009 Gala All-Ireland Camogie Championships were launched in Croke Park by Denise Lord, Customer Sales Manager of Gala, Camogie President Joan O’Flynn, and the captains of the 27 counties competing in this year’s Championships at senior, intermediate and junior level. Recognising the awesome contributions of the players involved, Gala has introduced an award for the Senior Camogie player who delivers the most outstanding performance of the season, as voted for by the public – the Gala Performance Award. Gala are celebrating four years of involvement with the Camogie Association and have pledged their support until 2010.

M&S Opens in Clonmel CLONMEL bucked the national retail trend recently, when the first phase of the Showgrounds Shopping Centre opened three months ahead of schedule as anchor tenant Marks & Spencer commenced trading. M&S’ request to open three months ahead of the rest of the Showgrounds Shopping Centre was facilitated by the development company, Greenband Investments, and was described by Centre Manager Julian Smith as a major confidence boost for the project. The remainder of Phase 1 will open on October 15. Pictured are Showgrounds Shopping Centre Manager Julian Smith (centre), Electrical Contracts Manager Tom O’Mahoney (left) and Electrical Contracts Engineer James Maher (right) making sure that everything is in place for the new M&S store.

Special K Summer Challenge TV Presenter Lisa Cannon and Nicky Samons, Kellogg’s Special K Brand Manager, are pictured on Sandymount strand launching the Kellogg’s Special K Summer Challenge. The 2009 Special K Summer survey shows that 50% of young, 20-something Irish women say that the itsy bitsy bikini is the one item of summer clothing they dread the thought of wearing. The survey also shows that the majority of young Irish women (58%) prefer to keep their tummies under wraps. Those doing the Kellogg’s Special K Summer Challenge should eat one bowl of cereal (45 grams) from the Kellogg’s Special K range with semi-skimmed milk for breakfast and again for lunch or dinner with a well-balanced third meal.

Topaz On Song AT the recent Volvo Ocean Race stopover in Galway, Topaz sponsored the main stage in the festival village, where bands like Aslan, The Stunning, Sharon Shannon, The Hothouse Flowers and The Coronas performed free of charge to a crowd of over 400,000 over the two weeks of the festival. Topaz invested up to €100,000 on the event and related activities. The two week stopover attracted over 400,000 visitors to Galway, three times the expected number, and proved a highlight on the summer festival calendar. Pictured aboard the Green Dragon, the Irish-Chinese entry in the Volvo Ocean Race is John Killeen of Let’s Do It Galway and Eddie O’Brien, CEO of Topaz. 10

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July/August09Industry

News

Sensational Win WALKERS and their PR agency, Life Communications, have taken Gold at this year’s PR Awards for Excellence for ‘Best Use of Sponsorship’ for the Walkers Sensations TV Now Awards. The sponsorship was recognised for delivering strong commercial results and the creation of a powerful brand overlay. Pictured are (l-r): Darlene McCormick, Managing Director of Life Communications, and Nicola Wells, Marketing Manager at Walkers, who noted how “Walkers has always recognised the value of good PR in the marketing mix and the results for our sponsorship of the Walkers’ Sensations TV Now Awards proves that the right sponsorship, excellently developed and executed, is a very valuable part of a brand’s marketing.”

Rehab’s Latest Convenience Store PICTURED at the official opening of ‘Smiles’, Rehab Enterprises’ latest convenience store outlet located in Blackrock DART station, are Mary Hanafin TD, Minister for Social and Family Affairs and Angela Kerins, Chief Executive, Rehab, along with outlet staff members Keith Browne and Ronan O’Brien. The Blackrock outlet is the latest to be opened in Rehab Enterprises’ growing network of stores across Dublin, which includes outlets in AIB Bankcentre, Dáil Éireann, Trinity Hall, and the head offices of Eircom, Ulster Bank and Vodafone. The store will offer a range of goods to commuters, including confectionery, minerals, ice creams, and newspapers, and will be open seven days a week from 7am to 7pm weekdays and 10.30am to 6pm weekends.

Gala Charity Golf Day GALA Retail Services Golf Day takes place on September 18 in aid of the Jack & Jill Children’s Foundation in the magnificent Heritage Golf & Country Club, Killenard, Co. Laois. This will give golf fans the opportunity to tackle the Seve Ballesterosdesigned course, which has become one of Europe’s premier golf locations. The cost is €1,000 per team of four, with a Shot Gun start at 10.30am, and includes a meal after the golf event. Gala have pledged to raise €250k for the children’s charity by the end of 2009. Please contact Denise Lord, Customer Service Manager, Gala, for more information: email dlord@gala.ie.

Kingsmill’s Carbon Neutral Label FAMILY bread brand Kingsmill has become the first bread manufacturer in the UK to use the Carbon Trust’s Carbon Reduction Label. Kingsmill’s Great Everyday White, Tasty Wholemeal and 50/50 sub-brands now carry the Carbon Reduction Label, demonstrating the brand’s commitment to reducing its carbon footprint with the Carbon Trust.

A Taste of Sacla’ MORE than 10,000 people were able to sample the delights of Sacla’ at this year’s Taste of Dublin food festival. The pesto pioneer created head-turning new sampling back-pots which proved incredibly popular at the event. The back-pots took more than two years to develop, and deliver the perfect portion of pesto onto crostini for sampling at events around the UK and Ireland, including the Oxford Children’s Food Festival in June and the Feast of Dorset in September. Such is their success that Sacla’ will now be creating stylish new back-pots to support the launch of their Fiery Chilli Pesto.

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July/August09Industry

News

One Stop SHOP for 2009! AT a time when relationships have never been more important, SHOP - the show for Ireland’s food, drink and retail sectors - is shaping up to be a one-stopshop to meet current and potential customers and secure new contracts, when it takes place at the RDS Simmonscourt from September 28-30. The 2009 show is building on last year’s successes through expanding the visitor profile, and is set to become the must-attend event this year. Floor space for 2009 is already being snapped up by some of Ireland’s top companies such as Derrynaflan, Pallas Foods Ltd, Forecourt Systems, Il Fornaio, Martin Food Equipment, Sheridan Cheesemongers, Avery Berkel and Keelings, who all recognise the importance of face-to-face marketing. “With a changeable economic climate, it’s even more important than ever before to reinforce relationships with key customers and secure new leads for the future,” comments Garret Buckley, Joint Managing Director of Expo Events (organisers of the show). “SHOP provides an open market-place for potential business and it’s a proven formula for increasing business. Trust is the buzz word at the moment, with people looking to do business with companies whom they know and believe in. The face-to-face nature of the SHOP provides exhibitors with three days to forge relationships and generate new leads in a targeted manner. “Following last year’s highly acclaimed World Cheese Olympics, which were held at SHOP, for 2009, we wanted to ensure that cheese was still high on the agenda at Ireland’s premier event for the food and drink sector.” The Big Cheese: The International Cheese Awards will recognise local and international producers, awarding the best in each category. Irish producers have consistently

performed well, with Co. Clare company, St Tola Crottin, receiving gold for hard cheese, and Ralph Haslan of Mossfield Organic Cheese, Co. Offaly, being awarded silver last year. The popular Product of the Show Awards will run again and new additions to this year’s SHOP also include Forecourt @ SHOP – a dedicated forecourt and fuel area; the Energy Management Pavilion @ SHOP – advising retailers on energy efficiency; and Fresh @ SHOP – a showcase of fresh and healthy produce developed in response to changing customer buying habits. The great new National Sausage and Puddings finals will also be brought to the show by the Craft Butchers of Ireland. To register your interest in SHOP, contact Expo Events on 01 295 8181 or log onto www.shopexhibition.com

Launch Success for New Irish Packaging Show PACKAGING show specialist easyFairs has confirmed its new Irish packaging exhibition will become an annual event after a successful launch in June, when almost 1,000 brand managers, product developers and packaging technologists, from brands such as Coca Cola Ireland, Kerry Foods, Diageo and Microsoft, attended the event debut at the RDS. They were able to check out new advances in packaging design, eco-friendly materials, and packaging and print machinery on offer from 85 of the country’s most forward-thinking packaging suppliers. easyFairs’ UK & Ireland Managing Director Matthew Benyon (pictured) said it was one of the most impressive show launches he’d experienced during his 14-year exhibitions career: “The strong demand from both visitors and exhibitors has reinforced our belief that we should offer the show annually – that’s what we’ll be doing. Our pre-show research revealed that Irish brand managers view innovative packaging as key to driving sales through the recession; that was evident as they turned out in force for our inaugural show.”

Next year’s show is scheduled to take place in Dublin on June 16 & 17. Almost half of the exhibitors that appeared at the inaugural expo have already rebooked for 2010, whilst both recycling body Repak and the Irish Packaging Society will again be supporting the show sequel. “Ireland demands its own packaging show, a place where the thriving packaging community can meet key buyers and decision makers,” noted Matthew Benyon. “Until now, Irish brands have tended to visit shows in the UK or mainland Europe to source packaging suppliers – now they have one on their doorstep. I’m confident easyFairs Packaging Ireland can grow to become as successful as our shows in the UK and Europe, where they attract many thousands of visitors.”

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‘Since I joined Daybreak my store has gone from strength to strength. The support I receive from the Musgrave team is second to none.’ Stephen Clayton, Daybreak Kilcullen

‘Open up to better profits’ Are you looking to improve the profitability of your store? If so, then Daybreak is the smart choice. Here are five good reasons to choose Daybreak: Real Value for Money As part of the Musgrave Group, we will enhance your sales and your margins with our competitive pricing and deep cut promotions. A fresh look at ‘Food to go’ Our new food solutions will drive your profitability.

Saving you money Our development costs are much more competitive than other symbols. Our team An experienced and responsive team are always at your disposal.

Our vibrant new image We’ve invested substantially to create a fresh new look.

For more information call us on

086 771 4666

July/August09Industry

News

Guinness Once-In-ALifetime Experiences GUINNESS has announced the latest part of its global Guinness 250 celebrations, with the Guinness Experiences giving consumers the chance to win one of these fantastic experiences: an unforgettable trip into space aboard Sir Richard Branson’s Virgin Galactic Spaceship; a journey to the depths of the sea in the world’s first Guinness deep sea bar; and an exclusive gig in an intimate studio setting with one of the biggest recording groups in the world, multi-platinum recording artists The Black Eyed Peas. Guinness also announced details of their first ever global advertising campaign, entitled ‘To Arthur’, which pays tribute to Arthur Guinness in celebration of the 250th anniversary of the signing of the lease on St. James’ Gate Brewery.

New Packaging for Premier BRAND Manager for Premier Milk, Amanda Ryan, and model Pippa O’Connor are pictured in Dublin Zoo at the launch of the new pack design for Premier Dairies, one of Dublin’s most iconic brands, which will continue to feature one of Dublin’s most iconic landmarks – the Ha’Penny Bridge. Celebrating this new design, Premier has also launched a fantastic new promotion, called ‘Rediscover Dublin’, which will allow consumers to collect tokens from Premier milk cartons and redeem them in order to visit famous Dublin sites across the city at a fraction of the cost.

Rib World Creates 20 New Jobs IRISH specialist food producer, Rib World, is set to significantly grow its business this year, creating 20 new jobs, investing in additional specialist machinery and establishing a new research and development unit at its plant in Clonmel, Co. Tipperary. Export sales of Rib World Barbecue Spare Ribs rose significantly since January, despite currency weakness, and growth has not slowed despite the economic downturn. Sales to Sweden have increased by almost 100% since the beginning of the year, while growth in sales to the UK is up by almost 20% for the first half of 2009. Indeed, the company is on track to grow sales to exceed €10m this year.

Hats Off to Lyons Tea Winner DOIREANN Ni Dhalaigh, aged 20, from Blackrock, Dublin, is pictured trying on her one-of-a-kind Philip Treacy hat inspired by Lyons Gold Blend Tea for the first time. The one-of-a-kind hat was specially created to celebrate the rich qualities of Lyons Gold Blend, which new research has revealed as the best tasting gold blend tea, out-performing competitors on taste, colour, flavour, appearance and mouth feel in both blind and branded research (Source: Synovete Research, Dec 2008). Doireann is the lucky winner of the bespoke hat, which was on display to the public at the Lyons Gold Blend tent at the Taste of Dublin festival in June.

Ireland’s First Completely Unmanned Filling Station GREAT Gas Petroleum (Ireland) Ltd has launched ‘GreatGas 24/7’, Ireland’s first ever completely unmanned and automated self service filling station. Located on the Old Airport Road in Santry, Dublin, the ‘pay-at-thepump’ forecourt has four pumps and provides customers with quick and hassle-free diesel, 24 hours a day, all year round. This concept has proved to be a huge success in other parts of the world, including America, continental Europe and Asia for many years and has also begun to gain popularity throughout the UK. The GreatGas ‘payat-the-pump’ forecourt will, for the moment, be restricted to the supply of diesel, as current Irish legislation stipulates that a petrol forecourt must be manned at all times. GreatGas is now preparing an extensive nationwide roll-out of this service, with plans for several more unmanned and automated self-service filling stations in key urban centres around the country over the next 12 months.

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July/August09Shop

Profile

Limerick Leaders Mike Tracey’s Daybreak store in Limerick City is proving hugely successful, thanks to a combination of hard work, good value and the support of Musgrave.

Tracey’s

Daybreak in Limerick is located right in the historic heart of the city, just a stone’s throw from King John’s Castle. The shop has plenty of history of its own, however, as it was the first in Limerick to get a National Lottery machine. With the introduction of the latest Daybreak image, Tracey’s is starting the latest chapter of its evolution. The Tracey family have been running a shop on Nicholas Street for over 40 years. A little over a decade ago, when Mike Tracey’s parents were retiring from the family business, they sold their shop, as Mike was working in Dublin at the time. The urge to keep the family business going soon brought Mike back to Nicholas Street, however, where he established a new Tracey’s. “I had no retail experience at the time,” Mike admits, “but I knew the business had been a successful one and of course the Tracey name had a lot of goodwill attached to it in the area. I spent the first few years trading as a fully independent before joining with a symbol group.”

New Daybreak Image Five years ago, Mike was able to acquire another site on Nicholas Street, which allowed him to substantially increase the size of the shop. Early this year, he decided to investigate all the options available to him to help him

Pictured are (l-r): Geoff Scally, Daybreak Territory Manager; Mike Tracey, store owner; and Trevor Cannon, Business Development Manager.

grow his business, with the result that he changed the store over to the new Daybreak image. “While talking to various symbol groups, I was shown the Daybreak concept store in Gorey and I thought it was extremely impressive,” he recalls. “The Group also offered excellent support and expertise and, of course, the backing and purchasing power of Musgrave.”

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July/August09Shop

The new Daybreak image didn’t mean simply a new fascia for the store, but also brought radical transformations to the interior as well as the way the shop functioned. The deli offering was supplemented with the addition of juices and smoothies. The tea and coffee offering was bolstered with an improved selection of baked treats. The grocery offering in the shop was also significantly redesigned, with every shelf-end promoting the strong value offerings across the ambient grocery lines. This value concept extends across the entire store, however, with Tracey’s keenly promoting ‘Double Deals’, where two complementary products are offered at one great price, as well as a strong loyalty promotion in the deli/food-to-go area.

Fantastic Reaction “All my customers were delighted with the new image,” enthuses the store owner. “The latest concept from

Profile

Daybreak really looks great, in terms of colour and graphics. But image is only skin deep and although my customers know I have made a significant investment in the shop, they would not be willing to subsidise that by paying prices that are too high, no matter how good the shop looks.” Tracey’s catchment area includes local office workers, targeted with offers in the deli/food-to-go, while the store also enjoys a lot of repeat business from both convenience and weekly top-up shoppers. “The one thing I have to be consistent on across the shop is that value offer,” Mike stresses. “This part of Limerick never really felt the full effect of the Celtic Tiger, so I have had a value focus for a long time now. In the current economic climate, that reputation is serving the shop very well.”

Great Working Relationship The working relationship with Daybreak has been very good for Mike. This support comes not just in the form of the latest image and a wealth of retail knowledge. Daybreak and Musgrave have been working hard to negotiate prices with suppliers, to give their retailers the best possible value to pass on to their customers. “Another fantastic aspect of working with Daybreak is the training made available for staff,” Mike explains. “Getting good staff is absolutely critical. This is a very friendly shop: I have a strong value focus and that’s because I have a strong customer focus. Part of that means that staff must be attentive to the needs of customers and make sure they help every visitor to the shop to have the best possible experience. “In order for that to happen each and every time, staff must be competent, so they must be well trained. On top of that, they have to have good customer relations skills, be friendly, courteous and attentive. It’s a lot to ask but my expectations of staff are no higher than they are for myself or for my symbol group partner. We have a big variety of customers, from young to old, from locals to tourists to resident non-nationals, so it’s a constant struggle to serve the varying demands placed on the shop. But then, that’s the business of retail.” Mike Tracey and Daybreak have kept the tradition of a Tracey retailer alive and well in the heart of Limerick. Significant investment and continuing hard work have helped to grow the business strongly over the past year and with FACT FILE Mike’s continuing Owner: Mike Tracey dedication and the Location: Nicholas Street, Limerick. support and proSize: 2,400 square feet retail space fessionalism of Number of the Daybreak Staff: 11 full time & part time team, it looks Opening like there a bit hours: 07:00-20:30, Monday-Friday; of history still 08:00-22:30, Saturday & Sunday. to be made at Tracey’s. 17

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July/August09CSNA

AGM

CSNA Highlight Big Issues for 2009 The recent CSNA AGM threw light on a number of issues facing newsagents in 2009.

that as many as 1 in 4 packets smoked within the State have no Irish Duty Paid tax stamp upon them.” He warned CSNA members about the severe penalties, both financial and legal, that follow from the sale of cigarettes to minors.

Labour Costs

The

Convenience Stores and Newsagents Association (CSNA) recently held their AGM, where CEO Vincent Jennings addressed some of the big issues facing the sector over the coming year. Relationships with the country’s big newspaper and magazine distributors were high on the agenda. “The Association believes that, despite recent very serious disagreements with some publishers and distributors, a blueprint for a more inclusive and fair commercial relationship with retailers is very possible, and should be launched before the summer,” Jennings noted. The Code of Practice will incorporate very significant new understandings in dealing with wholesalers and publishers, regional, national and UK, and will cover areas such as invoicing, returns, recalls, communications, prevention of excessive and unwanted supplies, the implementation of a new advance notice of supplies, bonds, guarantees and a strong complaints and resolutions procedure. Jennings drew attention to the new system of operating at EM News, noting how “most retailers are content that their service levels are exceeding the previous Eason levels”. However, the CSNA’s dealings with Newspread have proved less successful: “My main concern is the seeming philosophical

Joe Mannion from Clondalkin, Dublin, is the new CSNA President.

difficulties that Newspread has in considering you, the customer, as a valued partner, worthy of respect and equality of treatment.” The CSNA will continue with its fight to ensure that “Newspread divest themselves of this outdated thought process”, according to Jennings, “and embrace the idea that you are their customer, with rights that must be vindicated.” He noted the CSNA’s recent audit into the supply and returns procedures from both major magazine and newspaper distributors and vowed to “continue to press for a fairer system to be put in place to reduce errors that are costing you money”.

Referring to the current economic difficulties facing retailers, Jennings dubbed the JLC an “out of date structure”. He also spoke of the high costs of doing business in Ireland, particularly energy costs, highlighting how the CSNA engaged a company to carry out free assessments of members’ energy bills, and another to produce and manage reports on potential energy savings. He also promised that the association will continue to engage on all fronts to ensure that retailers’ interests are heard in a timely fashion by bodies and groupings that have an influence upon the sector, be that at European, national or local level.

New Members to the Board The CSNA also elected new members to the Executive Board, including Sheila Clarke from Mayo and Denis O’Flynn from Cork, while Joe Mannion from Clondalkin, Dublin, was named National President and Liam O’Connor from Killarney is the new National Vice President.

Tobacco Products

CSNA Executive Board

Jennings also addressed the legislative changes in the retailing of cigarettes. “The greatest challenge for tobacco retailers does not come from the implementation of these new laws,” he argued. “It is from retailers not taking action to prevent their legitimate sales remaining within their stores. Smuggling and the sale of contraband and counterfeit cigarettes has become so prevalent that the DPP has advised the Government

Joe Mannion, President Liam O’Connor, Vice-President Joe O’Connor, Immediate Past President Vincent Jennings, CEO Joe Tierney, Executive Joe Torris, Executive Philip Keegan, Executive Stephen Daly, Executive Sheila Clarke, Executive Denis O’Flynn, Executive

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Walkers A4

24/07/2009

09:22

Page 1

Second Edition 2009

A-Range Your Store For this month’s arrange your store, we visit Niall Lynch’s Mace in the County Louth village of Tullyallen near Slane.

Location The store provides a strong community link and is located in a small village cluster alongside a butcher, a crèche, a medical centre and other community services.. At 3,000 sq. ft. the store itself is spacious and full of many of the latest conveniences in c-store retail.

In order to offer “Value” to your shoppers and in turn build their loyalty, you must first know and understand your customer. As clearly evidenced by Lynch’s Mace, they most certainly know who their customer is and why they shop their store. By taking the Crisp & Snack category as an example we will work to show how even a successful store such as Lynch’s can further maximise the opportunities offered by growth categories such as Crisps & Snacks. Crisps and Snacks are performing very well..stock up and manage the category for profit

Trading The store is busy throughout most of the day with peak traffic in line with the local school’s daily routine, i.e. post 9am rush & post 3pm rush. There is also a steady lunchtime trade due to local business workers, and also post 5.30pm when the convenience offered is vital to local workers returning home. This steady business is reflected in the opening hours 7.30am to 10pm 7 days a week. As we discussed the last time, the key for success in the current environment, is to maximise the “Value” you offer to your customers. The customers perceives “Value” not through item price alone; but instead through the combination of multiple factors most particularly trust in the retailer, quality of store experience, product availability, value for money & convenience.

Store Layout In Lynch’s Mace we see that the crisps & snacks are situated under the counter by the tills as a shopper enters/leaves the store. There was no additional siting of equipment in the store and as we learned from the owner, Niall, the store had a very busy lunchtime/dinnertime trade with local workers calling into to grab lunch & other top up items. This is an opportunity to pick up extra sales from Breakfast, Lunch, Dinner and indeed snacking shoppers. We agree to site a crisp stand in a high visibility area by the key lunch/dinnertime area and we will check back on its progress.

Evening in Similarly there is an excellently stocked Off-Licence section in the store, and there is a high number of evening shoppers looking for those “special night in” treats across confectionery. This again is another opportunity to capture some of those valuable “add on” Euros! We agree to feature a Sharing Crisps & Snacks Section in a high traffic area stocked with the best selling items from the category and we will track its progress next time.

So far this year Crisps & Snacks are currently outperforming the Total Confectionery Category by over 6%! In these changing times shops must reflect changing consumer needs and anticipate what there shoppers want to see more of in their store at a keen price and convenient setting. By concentrating efforts on maximising store space for growth and in-demand categories, managing ranges stocked to focus on best sellers and knowing the facts of each category; shops can ensure that they are consistently delivering “Value” for their shoppers, in areas that they value. By ensuring that the shopper can find the product they want easily, in a shopper focused environment and at a fair price you will drive traffic into the store, ensure repeat visits and ensure a sustainable business for you and your employees. Watch out for our next update when we check on the progress of the suggestions we have made in Lynch’s Mace, Tullyallen, Co. Louth. Any retailer enquiries to Joanne Fox : e: Joanne.fox@intl.pepsico.com

July/August09Fresh

Convenience Foods

Edward Spelman, Managing Director of Dunhill Cuisine, on how the Waterford company has turned its fortunes around and is looking forward to a year of considerable growth.

Bucking the Recession When

Edward Spelman took over Dunhill Cuisine in 2005, the company was in dire financial straits. On paper, Dunhill looked like it was in trouble, with a loss-making product range and no real lights on the horizon. However, Edward (a former chef who has worked alongside the likes of Richard Corrigan and Conrad Gallagher) saw the potential in the company, albeit with a slight tweaking of their product range. From its formation in 2002 to Edward’s take-over three years later, Dunhill Cuisine was supplying mainly one-off products to hotels, “which had very small volumes and was very inefficient”, according to the Managing Director. “The company was being pulled from pillar to post, developing products for a number of different customers, which ended up being loss-making products, with the result that the company itself became a lossmaking concern.” A keen ‘foodie’, Edward saw the potential for Dunhill to develop high quality fresh ready meals for the retail and catering trade, from 400g right up to 5kg catering sizes. “All

our food is prepared today and delivered to our customer tomorrow”, he explains. “We make to order, just like a chef would make in a restaurant kitchen, to agreed specifications with customers.” When Spelman took the reins at the Waterford company, it was a time of changing consumer tastes. Irish consumers were more willing to experiment with different food types and try different products. Recognising this trend, Dunhill Cuisine started to create a high quality range of ready meals, using top quality local ingredients, to cater for consumers’ changing tastes. “For example, instead of a simple chicken curry, we began to produce a Thai Chicken Curry, using fresh coriander, coconut milk and a host of top quality ingredients,” he notes. Edward’s new product range dovetailed neatly with Irish consumers’ desire for fresh, nutritious, tasty, premium food products, helping the company to sustained growth. Indeed, Dunhill Cuisine is one Irish success story that is bucking the recession, thanks to a high quality product

range, a lean manufacturing process and excellent customer relations, allied to Dunhill’s ability to respond immediately to customer needs and consumer tastes. “We react very fast to our customers’ needs,” Edward avows. “Our new product development is arguably our biggest strength: we can make products to customers’ specifications extremely quickly. We are constantly innovating: two of our staff work exclusively on product development.”

Recession-Proof? Last year, Dunhill Cuisine had a turnover of €2.8m, up from €600,000 two years previously, and in 2009 the company expects a 25% growth. So how does the MD explain how a small Co. Waterford company is proving recession-proof? “The days of huge consumer spending have come to a shuddering stop,” Edward admits. “However, we have always been a very lean company in terms of staff levels and overheads etc, so we’re lucky in that respect.” He also points to the quality

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of their product offering as a key to Dunhill’s continued success: “Consumers are becoming more price-sensitive, but the appetite for quality products is still out there. Irish consumers still want convenience but they want it in a different format: more consumers are buying a good quality sauce and then going home to cook their meal themselves, or they might buy a ‘meal centre’, which could be a sauce and chicken mixed together, and they cook the rice themselves. A lot of consumers want to feel a sense of being involved in cooking their food. Even in the ready meals sector, consumers are moving away from frozen products and are really embracing fresh ready meals.” According to Edward Spelman, quality remains the key to success in the FMCG sector: “Consumers are not going to pay above the odds for inferior products. People will still pay a premium, but they want to get it back in terms of the quality of the product.” He does, however, argue that the challenging trading environment in which Ireland’s SME’s find themselves, could be alleviated by Government intervention: “Labour is a large cost factor, particularly for small businesses, who aren’t auto-

mated and tend to hand-make most of their produce, as are costs like electricity, light and heat. We would like to see some decreases in some of these overheads and I think the Government will have to jump in and do something in terms of the cost of doing business here in Ireland.” That said, Dunhill are still on course to enjoy another year of strong growth, with a host of new products due later in the year, as well as plans already in place to increase their Co. Waterford facility by 3,000 square feet, and to take on another 10 staff over the coming year, bringing employment numbers up to 43. “When I took over the company, we had no money and a lot of debt,” notes Edward. “Now, however, that experience is standing to us: Dunhill Cuisine, as a company, had our recession three years ago. Now, we’re getting stronger all the time.”

Support from Musgrave Edward is quick to point to the support he has received from Musgrave Retail Partners as being crucial to Dunhill’s success and their everexpanding product range: “They have great appetite for new products, which is fantastic. We are a small business and Musgrave are one of

Convenience Foods

the biggest grocery businesses in the world. They have worked with us from the very beginning; developed with us, helped us to understand their systems of ordering and invoicing, right down to product development and packaging. I have nothing but good things to say about our relationship with Musgrave.” Dunhill Cuisine’s relationship with Musgrave has been further cemented with the winner of the recent RTE Recipe for Success TV programme, Maura Bielski’s smoked haddock and spinach pancakes, being produced by Dunhill for sale in SuperValu’s store network nationwide (see panel for more details). This highly original and innovative marketing concept allowed an ordinary consumer to see one of their home-cooked dishes freely available on supermarket shelves. “We’ve had Maura Bielski down to Dunhill Cuisine for our first product run and she’s delighted with the quality of the product and the integrity with which it’s produced,” Edward concludes. “When consumers hear of processed food, they tend to think of big production lines, with huge vats of meals being put into trays. However, that perception has been torn up and thrown out the window.”

Winner announced in RTÉ’s Recipe For Success MAURA Bielski, from Fermoy, Co. Cork is celebrating, after being announced winner of RTÉ’s Recipe For Success for her smoked haddock and spinach pancakes. Her winning product is now stocked in over 190 SuperValu stores nationwide and as the winning prize, Maura will get a percentage of everything sold. Recipe For Success was aired on RTÉ 1 over a six-week period and explored the mechanics of getting a product from a domestic kitchen into mass production, onto supermarket shelves and ultimately into consumer shopping trolleys. Viewers saw exactly what goes into the creation of the food we purchase – from the initial product concept, to tasting and refining the recipe, to the feasibility of mass production, quality standards to packaging and marketing the product. “SuperValu’s participation in the this show was Maura Bielski, winner of RTE’s Recipe for Success, is pictured with Ray Kelly, SuperValu Marketing Director, with the winning a natural decision as it underlines our longstandSmoked Haddock and Spinach Pancakes on-shelf at SuperValu ing commitment to local producers and suppliers Fermoy. throughout Ireland and our desire to help producers to get their products from just a simple idea onto the shelves of our SuperValu stores,” noted Ray Kelly, SuperValu Marketing Director. “We are always open to new ideas and to sharing our knowledge and expertise to ensure the talent of local Irish producers is nurtured and supported.” 21

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July/August09Special

Report

Surviving the Recession Ken McIntyreBarn, General Manager of Glendinning in Ireland, offers strategies for the FMCG sector to survive and thrive in the current economic climate.

Turn

the clock back 18 months and anyone forecasting the global economic crisis on its current scale would have been told they were mad! Nationalisation of Anglo Irish Bank, AIB and Bank of Ireland re-capitalisation, Lehman Brothers, Woolworths, Sasha, global motor industry etc: the casualty list lengthens daily as the credit crunchâ&#x20AC;&#x2122;s ripple-effect spreads. No one is safe: the big question is â&#x20AC;&#x153;whoâ&#x20AC;&#x2122;s next?â&#x20AC;? The recession has changed the game from winning to surviving. Irelandâ&#x20AC;&#x2122;s FMCG industry is far from immune, and has already experienced rationalisation and restructuring, with many suppliers facing rising pressure from retailers to reduce prices and increase investment in promotions to enable them to compete. The strength of the Euro versus

McIntyre-Barn, General Manager of Glendinning in Ireland.

Sterling has exposed more fundamental competitive problems of doing business in Ireland. Our higher cost base represents a much more longterm threat to the competitiveness of retailers, suppliers and all businesses in Ireland, with a myriad of examples shown below: s )RELAND S MINIMUM WAGE IS HIGHER THAN THE 5+ AND higher than Spain. s 4HE AVERAGE INDUSTRIAL WAGE IN Ireland is â&#x201A;Ź12,000 higher than the EU average. s %LECTRICITY COSTS ARE HIGHER in Ireland than the EU average. s 7ASTE DISPOSAL COSTS IN )RELAND ARE HIGHER THAN ,ONDON

Retailers and Suppliers Face a Difficult Environment As retailers in Ireland now face a resurgent competitive landscape, often with lower cost to serve formulas, their quest for lower list prices and extended terms has to be a pre-

cursor of supplier negotiations. Over the past number of months, we have seen the multiple price increases gained during the Celtic Tiger unravel rapidly, with retailers aggressively trying to reverse price appreciation. While this is good news for consumers, these new low prices come at a cost. Itâ&#x20AC;&#x2122;s not as simple as suppliers reducing list prices, as the impact of the currency exposure represents a significant proportion of their profit. As the market dynamics continue to change, the distributor model as we know it has come under scrutiny, is likely to consolidate and will be required to clearly demonstrate what value it adds. Many organisations have found themselves resourced to service a certain level of business, and sudDENLY IT S LESS AS A RESULT OF Tesco sourcing from the UK. Their remaining turnover is higher cost to serve: e.g. Dunnes Stores direct delivery model leaving them with the challenge of having the most effective and efficient organisation that can adapt to a significantly changed marketplace, yet ready to react when the economic environment improves. This continued pressure will tip some suppliers over the edge and is a recipe for carnage.

Taking Control of Your Destiny According to Deloitte, how companies act over the next two years will drive their performance for the next decade. Balance sheet strengthening is critical to ensure companies have the capacity to take opportunities and get support from shareholders. Tackling factors that raise the cost of doing business is the best way of ensuring Ireland can compete with the UK and beyond. As a result, all organisations, from car oil to cakes, are having to take a very strong look at their cost base.

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â&#x20AC;&#x153;Variablising costâ&#x20AC;? is the new buzz term, whereby companies try to remove fixed overheads and link their costs to incremental revenue. Organisations are realising that some volume is no longer profitable enough to maintain a sustainable business, and are now cutting revenue which does not meet their profitability threshold. In an effort to understand profitability, they are looking at cost to serve and need to understand which customers they cannot afford to continue trading with. The output of this work will result in a greater use of third parties e.g. sales forces, agents, distributors. The approach to route to market is very cyclical. Traditionally, when suppliers enter markets, they use distributors in the initial phase, resulting in a highly fragmented and uncoordinated approach, particularly around price and range. As markets

â&#x20AC;&#x153;Irelandâ&#x20AC;&#x2122;s FMCG industry has already experienced rationalisation and restructuring, with many suppliers facing rising pressure from retailers to reduce prices and increase investment in promotions to enable them to compete.â&#x20AC;?

develop and mature, the customers consolidate and the suppliers implement account management structures and take more direct control of their business. As markets mature further, prices and volumes decline and suddenly the model needs to transform to cope, which is why there is such a need for variablisation of cost. The key to dealing with this new environment is increasing effectiveness and efficiency.

Efficiency â&#x20AC;&#x201C; There is No Other Option In a recent project we were involved in with a European client, they removed â&#x201A;Ź28m of costs from their business. Although this resulted in a profit reduction of â&#x201A;Ź14m - the net gain for the client was â&#x201A;Ź14m, as well as a more sustainable, profitable business. By using comprehensive â&#x20AC;&#x153;what ifâ&#x20AC;? tools, which capture every

Report

line item of the P&L, it allowed us to simulate changes to their business and see potential impact in areas such as channels, customers, range and people. The challenge for Irish suppliers is huge but I recommend the following actions: 1.

Cut all the fat and make your business as efficient as possible, as quickly as possible, through the understanding of customer profitability and the impact of the different levers which can be pulled - and their financial impact. 2. Find ways of variablising cost without losing effectiveness and, where possible, improve it. ,OOK AT YOUR CUSTOMER SEGMENTAtion model to ensure that every minute spent on every customer (from your National Accounts Team to your Merchandising 23

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nies are already demonstrating early signs of manic depression. Knuckle down, cut training budgets and analyse, analyse, analyse! It’s easy to get sucked into a negative spiral trying to explain the recession to management in monthly reports of ever increasing gloom and self-justification. But let’s face it, if Manchester United lose a couple of big games, you won’t find Alex Ferguson selling The Cliff. You need more cut-through than ever in the coming months and your team need to be at peak performance. Sharp swords beat blunt blades. team) is adding value, and if it is not, then stop doing it. There are five areas you should be focused on right now:

1.Brand Portfolio Optimisation Now is the time to focus on your power assets and take a long hard look at your brand portfolio. Justify every SKU on the basis of a relevant and compelling consumer and shopper proposition or remove it.

2.Efficient Trade Terms If cash is king, cash-flow is the king’s blood! Letting customers, whoever they are, hold back payments up to DAYS COULD JEOPARDISE YOUR ENTIRE future. Now is the time to thoroughly reassess your trade terms structure and look for opportunities to improve the efficiency of your business model with your customers and, often overlooked, with your suppliers. Move

from supply-only trade terms to demand & supply terms that unlock value.

3.Excellence of Execution The global out-of-stock opportunity IS ESTIMATED AT BILLION 'REAT IN store execution is critical to success and all customers should be managed and incentivised against point of purchase growth drivers. Two crucial factors need to be counter-balanced: the volume potential (which customers deliver your volume and those that offer you future growth opportunities); and executional capability, those who can practically and consistently deliver their promises where it matters.

4.Energise, Equip, Engage There is a proven correlation between the performance of a business and people capability, yet many compa-

5. Go To War ‘Desperate Times Call For Determined Measures’ (DTCFDM) and the time for action is now. The growing recession is everyone’s burning platform. Get your people’s heads up, skills up and out into customers. From head office to stores, you need to go to war for every case you can win. And I don’t just mean your sales teams. Everyone can make a difference. Don’t underestimate the power and impact a few more CEOs meeting customers can have in engaging them to support your cause. If you aren’t doing so already, start tracking your competitors. Watch their results. Listen to customers. The slightest wobble may offer the opportunity to negotiate contracts in your favour. Although little is certain in this economic turmoil, we know this for sure: it will end. Many of today’s retailers and suppliers will be history. Most will simply survive. A select few will fall into a third category: they will emerge stronger because they seek opportunities where survivors see only challenges. It’s not the fittest who will survive: it’s the most adaptable!

About the Author KEN McIntyre-Barn is General Manager of Glendinning in Ireland. Glendinning are global leaders in the creation, development and implementation of winning sales and marketing solutions and are well known for having the ability to drive business growth. For further information, contact +EN ON OR VISIT www.glendinning.com 24

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Ireland’s Own Irish products can stand alongside goods from anywhere in the world in terms of quality and value, and stocking up on home-grown products is good news for the economy too.

Irish

consumers love Irishproduced goods: fact. Indeed, many home-grown products are category leaders, and as such, are must-stocks in your store. However, stocking Irish-produced products also has wider, knock-on benefits for Ireland’s manufacturing, processing, distribution and retail sectors. For decades, Irish-produced goods have been the bed-rock on which our retail grocery and food manufacturing sectors have been built and supporting homeproduced grocery products, and their manufacturers, will help ensure the foundations remain solid into the future. “Many of the brand leaders within the grocery market today are indigenous Irish brands,” agrees Peter Foley, Commercial Director, ADM Londis. “One only has to look to well known brands such as Bewley’s, Tayto, Barry’s Tea, Kelkin and many others to recognise the value placed by Irish consumers on Irish products. Furthermore, many of the more suc-

cessful niche and artisan products in the market are of Irish origin. Ballymaloe is one example of a fantastic Irish niche brand which has built up a strong consumer following.” While Irish consumers are more price sensitive than ever before, it is wrong to suggest, as has been done in some quarters, that Irish-produced goods cannot compete on price with their international counterparts. “I think it’s a bit of a disservice to the Irish supply base to say they can’t compete,” argues Tesco Ireland CEO Tony Keohane. “They can compete and many are: some are not yet. If Ireland is to get out of this recession through export-led growth, ensuring that we are competitive in the home market is a starting point for that.”

Peter Foley, Commercial Director, ADM Londis.

Peter Foley believes that retailers cannot forego Irish brands, “which have consistently delivered on quality and value, in place of cheaper, international alternatives”. “Whilst there is undoubtedly a place in the market for low price alternatives, these products do not compete directly with established brands and in many cases, grow a retailer’s sales in terms of consumers trading into a category, due to the availability of a lower priced alternative, rather than an existing consumer switching allegiance from a branded product to a very low price alternative,” Foley notes.

High Cost of Doing Business “In terms of value, Irish food companies can deliver,” agrees Paul Kelly, Director, Food and Drink Industry Ireland, who represent Irish suppliers. “Value is a very broad term, which can include choice, range, convenience and innovation, as well as pure pricing issues. But the big issue for food companies here, even as highlighted in the Competition Authority Report, is that companies are doing all they can to strip out costs internally – and unfortunately, in many cases, that means job losses – but our hands are tied behind our back in terms of things like energy, labour, 25

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Paul Kelly, Director, Food and Drink Industry Ireland.

waste etc. Until such time as we get our cost base sorted out, that’s going to present us with competitive difficulties in all markets, both domestic and export.” While acknowledging that consumers are increasingly price sensitive, Peter Foley stresses that Irish suppliers are responding to this through strong promotional programmes, which give consumers every opportunity to support Irish. “However, the challenging reality facing Irish suppliers is one that faces every company operating in Ireland; cost competitiveness,” he notes. “Ireland has become one of the most expensive countries in the EU for manufacturing operations and these issues will need to be addressed by all stakeholders, including and perhaps most importantly, the Irish Government, to ensure Irish manufacturing jobs are not lost or displaced elsewhere.” According to the FDII, most of the relevant costs are controlled either directly or indirectly by Government. “We’re in a very difficult economic environment and we’ve had a huge increase in the levels of unemployment,” admits Paul Kelly. “It’s generally accepted that our only way out of that situation is to get back onto a growth trajectory. For a small, open economy like Ireland’s, that means being able to grow our exports, which will have a knock-on effect in the domestic market as well, because it will mean that food products will be more competitive. But the only way

we can do that is to vigorously attack our cost base and bring it in line with our competitors’, particularly the UK, which is our biggest competitor – 43% of exports go to the UK, which is also our biggest source of imported food produce. Until such time as we’re competitive with the UK, we’re going to have problems.” FDII is urging the Government to look at doing all in its power to reducing the cost of doing business in Ireland, pointing to energy costs in particular as one area that must be addressed, with Ireland suffering the second highest energy costs in Europe. If costs aren’t curtailed and retailers fail to support Irish goods on-shelf, it could potentially lead to a host of Irish suppliers being forced to close, which would have some stark repercussions for both the grocery industry here and the wider economy. “Once you lose jobs in industries like the food industry, it’s very hard to get them back, so you can argue that once jobs are lost, they’re lost forever,” stresses Paul Kelly. “Secondly, and more importantly, we have an

Tony Keohane, Tesco Ireland CEO.

integrated supply chain here. 90% of the output of the agricultural sector in Ireland is used here in the food industry, which is why it’s referred to as the agri-food sector. There are 50,000 direct jobs in food manufacturing, along with 60,000 indirect jobs, and a further 100,000 to 110,000 farmers, which is close to a quarter of a million jobs. That equates to one in every eight jobs in the Irish economy. So, it is as important to Ireland as the car industry is to Germany. If there is a big impact on the food sector here, that will have repercussions throughout the entire economy.”

Surviving The Recession So what can Irish suppliers do to ensure they survive the current economic climate? “Firstly, they need to manage their cost base in the most stringent way possible,” advises Paul Kelly. “Secondly, they need to look further at market diversification, particularly into other parts of the eurozone, which cuts out the currency risk. Thirdly, they need to work with development agencies, like Enterprise Ireland, to look at the various supports that are available in terms of productivity, enterprise stimulus etc.” Tony Keohane, Tesco Ireland CEO, echoes these sentiments, encouraging any initiative to reduce Ireland’s cost base, to remove any inefficiencies in processes and systems. “It’s only by competing again that businesses will grow, that customers will be happy and Ireland will

“The decline of local, indigenous Irish business serves no value other than to ensure that more and more consumer spend is repatriated to foreign head offices and as such, is not reinvested in the Irish economy.” – Peter Foley, Commercial Director, ADM Londis.

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News Special Report: Buying Irish

work its way out of this current predicament,” he predicts. Keohane advises Irish suppliers to work with the supermarket giant “to do what consumers want, which is to get our costs down and get our prices down”. “Accept the new reality,” he warns, “which is that people have less money so they’re going to spend less money, so the prices must fit their pockets. Come and talk to us; work with us.” The Tesco chief feels that the multiple’s decision to lower prices across its Irish stores is a bold move, but one that was necessary to combat the haemorrhaging of Irish consumers to stores across the border in Northern Ireland: “People shopping in our stores is good news for all the suppliers, Irish suppliers included, because then you’ve got a chance of people buying your product in our stores: going across the border is no good to anybody, so work with us.” Tesco is, according to Keohane, “fully committed to sourcing as much as we can from Ireland, but there is a new reality. The new reality is that customers have less money, so we have to provide consumers with the options and the choices that had them shopping across the border.” Tesco’s price cuts have been widely criticised in the sector, as many industry commentators feel that the multiple is sourcing less Irish product in favour of UK and international brands, with Jim Power, Chief Economist with Friends First, recently predicting that half of Ireland’s agri-food jobs could be lost “if the Tesco practice becomes widespread”. To this end, FDII have called for the implementation of a Supermarket Code Of Practice and the appointment of a supermarket ombudsman to combat what they term is the “significant concentration” of the big supermarket groups in Ireland. “The most comprehensive investigations in this regard have been carried out by the UK Competition Commission, who uncovered significant evidence of problems in how retailers deal with their suppliers,” Paul Kelly explains. “Their redress for that, to provide balance in the commercial arena, was to create a Code of Practice, backed up by an

Ombudsman, and we believe a similar approach here would be appropriate.”

Balanced Representation ADM Londis Commercial Director, Peter Foley, however, believes that there will always be a place for homeproduced goods on Irish supermarket shelves. “Every retailer needs to ensure that their category offering is a balanced representation of what consumers are looking for,” he notes. “As such, indigenous Irish brands will always have a place on our shelves. What is clear, however, is that the Irish brands which are most successful are those which have invested consistently throughout their life, in both marketing and product development, to maintain and develop a very loyal customer base. “As an Irish owned retailing group, Londis is very sensitive to the importance of supporting Irish producers and Irish manufacturers,” he continues. “Londis retailers are at the heart of communities throughout Ireland and they consider supporting their local suppliers and producers to be of considerable importance, particularly in these more challenging economic times. The decline of local, indigenous Irish business serves no value other than to ensure that more and more consumer spend is repatriated to foreign head offices and as such, is not reinvested in the Irish economy.”

Largo Foods The Irish crisps and snacks market, valued at an estimated €207m per annum (all figures, Source: ACNielsen, Markettrack, Value, April 19, 2009), has remained one of the most robust categories during the past year. It has registered a solid value growth rate of 4% for the past year, which considering the very difficult economic environment, is a great result. Largo Foods, home to the Tayto, Hunky Dorys, King, Perri and Sam Spudz brands, was indeed the only branded snack food manufacturer to record share growth in the past 12 months, to achieve a total market share of over 48%. Having first

One of Ireland’s much-loved Irish brands, Tayto crisps are made with the finest Irish potatoes.

opened its doors in 1983, Largo Foods currently employs over 500 staff in its Co. Meath and Co. Donegal operations. The company, through its strong Irish heritage, prides itself on its commitment to, where possible, locally source its raw materials and is very proud of the fact that it annually purchases 35,000 tonnes of potatoes from Irish farmers, which is 10% of Ireland’s national crop of Rosetta, Lady Claire and Sassy varieties. Largo Foods represents the number one snack food brand in the market, Tayto, the number one crinkle cut crisp, Hunky Dorys, and the number one crisp pack in Dublin, King Cheese and Onion. Tayto, the Original Irish Crisp and market leader, claims a 28.4% share of the crisps market and 33.6% share of the snacks market. One of Ireland’s much-loved Irish brands, Tayto crisps are made with the finest Irish pota-

King Crisps, with their strong Dublin roots, are particularly popular in the capital.

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Hunky Dorys continues to be Ireland’s number one crinkle cut crisp.

toes. They are seasoned with Ireland’s most delectable flavours, including the number one selling Cheese & Onion flavour, and delicious Salt & Vinegar and Smokey Bacon flavours. Tayto Crisps source their potatoes from 18 Irish farmers nationwide and over 95% of the potatoes used in producing the irresistible Tayto Crisps are wholly Irish grown. Tayto Crisps carry the Guaranteed Irish logo on the front of packs, helping consumers who prefer to buy Irish to support the brand. The Guaranteed Irish Logo indicates not only guaranteed peace of mind for consumers, but also a guaranteed competitive edge for the original Irish crisp. King Crisps, ‘The Crisp Lovers Crisp’, claims 11.6% crisp share and because of its strong Dublin roots, is the number one crisp in pack sales terms in the capital. First established in 1963, the brand has grown to be a true favourite of Leinster people. The King range consists of both standard King crisps, of which the distinctive King Cheese & Onion flavour is the firm favourite among consumers, and the healthier option King Lites, for those seeking a great tasting lower fat alternative. The King brand presents an excellent stocking opportunity for retailers to add further sales in the growing crisp category. Hunky Dorys, continues to be Ireland’s number one crinkle cut crisp, claiming a commanding 13.4% share of the market. The brand is primarily targeted towards a male audience and in respect of the positioning, has signed a major sponsorship deal with Ireland’s Premier League club, Drogheda United. According to Drogheda United Commercial Manager Alan Williams, “This is a major coup for the club in the current economic climate and I’m sure that this partnership will be of

great benefit to us and our new sponsors.” The Hunky Dorys brand will continue its link with Irish and local sport related themes in order to build upon its massively successful sponsorship of Ireland’s newest boxing world champion, Bernard Dunne.

Glanbia Encapsulating all that is Irish, the Avonmore Fresh Soup range is made with the finest ingredients in the heart of County Kilkenny. Launched in 1991, it is the original fresh soup in Ireland and claims a commanding 68.1% (volume) share of the total fresh soup category (MAT April 2009). The Avonmore Fresh Soup range offers busy consumers a wholesome, fresh and tasty food solution in a convenient, microwaveable format and really is “Homemade without the hassle!” Available in eight family pleasing recipes and in three different pack sizes, the brand is consumers’ healthy option, as it is the only brand with a dedicated low fat offering and is packed fresh to seal in the wholesome flavour and freshness. January 2009 saw the relaunch of the Avonmore Low Fat Fresh Soup range, with four recipes in the portfolio now: Low Fat Garden

Vegetable, Low Fat Tomato & Basil, Low Fat Chicken & Herb and Low Fat Mediterranean Vegetable. With less than 2 Weight Watchers points per serving and a number of the recipes containing a portion of veg per serving, these products are low in fat, nutritious but above all tasty: it really is low fat without any compromise. Avonmore has remained the first choice for fresh soup because of the brand’s commitment to delivering to Irish consumers the recipes that they love. With the fresh soup market in Ireland currently growing at 5.1% MAT, it is clear that consumers are turning increasingly to fresh soup because of the quality of ingredients and the outstanding taste. Avonmore is the cream market leader with 56.1% market share (MAT April 2009) and continues to drive strong growth in the category. Whipped cream is the sector that is achieving the highest growth levels in the category with growth at 26.2% MAT – all down to the Avonmore Freshly Whipped Cream range. The Avonmore Cream range, produced by Glanbia Consumer Foods, consists of Fresh Cream, Double Cream, Sour Cream, Light Cream, convenient Freshly Whipped Cream and the delicious new Freshly Whipped Baileys Cream. The Avonmore range has a cream for all consumers’ summer treats, whether it’s Fresh Cream poured over strawberries or Freshly Whipped Cream served with scones, summer puddings and pies. This summer will see the launch of a special extrafill promotional pack of Avonmore Freshly Whipped Cream, ensuring that consumers can enjoy more of

The Avonmore Fresh Soup range is made with the finest ingredients in the heart of County Kilkenny.

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Avonmore Freshly Whipped Cream is driving growth in the fresh cream sector.

Ireland’s favourite cream. Avonmore Sour Cream also offers the ideal accompaniment for savoury meal occasions this summer. Perfect for summer barbecues, light savoury meals such as fajitas and baked potatoes, and as a dip with nachos or salad, Avonmore Sour Cream is available in a handy 200g re-closable tub, guaranteeing freshness and convenience for shoppers. Available nationwide, the range offers the great fresh taste shoppers expect from Avonmore in convenient formats and pack sizes suitable for today’s lifestyles. Also from Glanbia, multi-award

winning Kilmeaden Cheese has now further solidified its reputation as the ‘fillet of cheddar’ by providing discerning Irish cheese lovers with even more options. Kilmeaden Hand Cut Slices and Grated Mature Cheddar are available in red & white cheddar varieties, offering the superior quality and unique taste for which Kilmeaden is renowned. Kilmeaden Grated Cheddar has a firm texture with an aromatic rich and distinctive flavour, making it ideal for enhancing pasta dishes, freshly baked potatoes and everyday dishes. Kilmeaden Hand Cut Slices are cut straight from the block and are ideal

for sandwiches, as part of a cheese board or on their own as a delectable complement to wine. Offering providence based on craftsmanship and a process of maturation guided by a love of producing the finest Irish cheese, Kilmeaden Hand Cut Slices and Kilmeaden Grated Cheddar are perfect for consumers looking for a Cheddar Cheese with superior quality, award winning taste and convenience. The Kilmeaden brand is fully supported throughout the year both above and below the line with “The Fillet of Cheddar” execution. All communication focuses on the care, craftsmanship and expertise which goes

Kilmeaden Cheese has now further solidified its reputation as the ‘fillet of cheddar’ by providing discerning Irish cheese lovers with even more options.

Brady Family BRADY Family, the traditional Irish ham company based in Co. Kildare, are specialists in the production of natural, non processed ham, with no added water. Only Irish pork is used, sourced from Bord Bia approved suppliers. What makes Brady Family different from their competitors is the fact that each ham is carefully made by hand by their own skilled butchers. Brady Family Ham is renowned for premium quality, succulent, flavoursome Irish ham. Recently, Brady Family launched an artisan range of exceptional, Irish handmade products created by James Mc Geough, master butcher. The range includes air dried ham, pork and lamb. Winner of an internationally renowned Great Taste Gold Award in 2008, Brady Family Connemara Air Dried Ham is an exceptional product. The product itself is endorsed by celebrity chef Clodagh McKenna. A personalised, quality, pro-active sales team is provided to all customers through the company’s own professional van sales team. For more information, contact 045 863650 or visit www.bradyfamily.ie

Brady Family Ham is renowned for premium quality, succulent, flavoursome Irish ham.

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HEALTHY BABIES ARE HAPPY BABIES History Cow & Gate have been manufacturing in Ireland since 1887 and continue to manufacture Infant powdered milk today with two plants in Cork and Wexford. These factories produce infant powdered milk for Europe and together with an office in Dublin employ 250 people. Cow & Gate originally started out as a creamery in Ireland and was very successful with a Cow & Gate cream product. A by-product of this cream was huge quantities of leftover skimmed milk. So in 1900, Cow & Gate purchased the latest drying equipment from America, and began selling milk powder to the bakery and catering trade for making puddings. In 1904, the company received a bulk order for milk powder from a Medical Officer of Health for use as baby food, following reports from America that the health and survival rates of poorer children in New York were greatly improved when powdered milk was added to their diets. Trials with Cow & Gate milk powder yielded similar improvements and results were published in medical journals. Soon the demand for this new baby food began to grow and Cow & Gate emerged as a baby feeding company. Cow & Gate is fully dedicated to supporting breastfeeding in Ireland and in the world and has strong policies in place to ensure that mothers are encouraged to breastfeed. However, Cow & Gate acknowledges that some mothers cannot and do not wish to breastfeed, and it is paramount that they have access to the best possible infant milks for their babies. That is why Cow & Gate invest heavily in state-of-the-art research and development and work closely with the scientific community to bring bottle-fed babies the most advanced nutrition.

Products & Services Cow & Gate is the only brand in Ireland to offer a full range of tailored infant milks and food products of all types to help feed from birth to 3 years of age. All of their products are developed by nutritionists and tailored for the key stages of baby’s development. Their Dublin office is unique in its provision of services specially tailored for Irish mums, but also Irish health care professionals. For example, any mum can ring the Dublin-based careline in order to get any advice in relation to their babies. Any specific nutrition queries will be relayed to one of their qualified nutrititionists in the office. Cow & Gate have also recently developed unique online assessment tools that allow mums and mums-to-be to assess the quality of their baby’s or their own diet, in compliance with the Food Safety Authority of Ireland's dietary guidelines. These tools are available at www.feedingforlife.ie. Cow & Gate also invest in and support surveys and research projects to help understand better how babies and toddlers are fed today in Ireland, as they believe that what you feed your baby in the early years is key for future health and development.

Breastfeeding is best for your baby and provides many benefits. Good maternal nutrition is important for the preparation and maintenance of breastfeeding. Introducing partial bottle-feeding could negatively affect breastfeeding and a decision not to breastfeed is difficult to reverse. Infant Milk Formula should only be used on the advice of a health professional and the manufacturer's instructions for use should be followed carefully. Improper use of an infant milk or innappropriate foods or feeding methods may present a health hazard. The social and financial implications of using infant milks should be taken into consideration. If you choose to bottlefeed, do not allow prolonged or frequent contact of milk feeds with your baby’s teeth since this increases the risk of tooth decay. Make sure your baby’s teeth are cleaned after the last feed at night.

Cow & Gate, Block 1, Deansgrange Business Park, Deansgrange, Co. Dublin

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News Special Report: Buying Irish

into ‘The Fillet of Cheddar’. Kilmeaden is the nation’s favourite natural cheddar block and is the number one branded player in the grocery market (Source: ACNielsen Data, May 2009). Avonmore Cheese is a long standing family favourite among Irish consumers and is convenient for everyday usage occasions for all the family. Consumers can choose from sliced and grated in a wide range of variants. Avonmore Cheese Slices taste great in sandwiches for school lunch boxes, on ciabattas at work, or melted in tasty toasties in the evening. Avonmore Grated cheese is perfect for pasta dishes, baked potatoes, salads or sandwiches. All packs include recipe ideas to enjoy Avonmore cheese at home and are re-sealable for convenience and freshness. Avomore Grated continues to be the number one branded player in the grated natural cheese market (Source: ACNielsen, MAT, May 2009).

Georgia Pacific Georgia Pacific produces many everyday brands that consumers know and love: KittenSoft bathroom tissue; KittenSoft Thirstpockets; Inversoft EcoKind bathroom tissue; Posies; Raytex; Lotus Olbas and DEMAK’UP. The Irish company began its production way back in 1927, and is now Ireland’s leading manufacturer and marketer of tissue, packaging, foil and paper products. Innovators in their industry, in 2008 alone the company launched

KittenSoft: thicker, stronger and softer than ever before.

Inversoft EcoKind – bathroom toilet tissue that effectively closes the recycling loop. Inversoft is recycled from roll to core and so offers the consumer the chance to recycle and buy a recycled product, while ensuring the quality and softness are second to none. “We are proud to be Irish and as a company, we do everything to make certain the consumer gets great value and an excellent quality product,” notes Paul O’Connor, Brand Manager, Bathroom Tissue. “At Georgia Pacific, we are continuously researching and developing new processes for creating our products. A significant investment has been made in recent years to ensure the company has state-of-theart machinery, for this purpose. “Having our manufacturing plant in Ireland means we can contribute to the community by having a sturdy Irish workforce. The company employs 154 people in Ireland from manufacturing, research and development right through to marketing. For the consumer, we offer the knowledge that they are supporting an Irish business in an economy where heritage and pride need to be ever-strong.” In 2009, KittenSoft feels thicker, stronger and softer than it ever has. Research and development on the product resulted in new and improved KittenSoft – the softest ever toilet tissue. Not only that, consideration of interiors was taken into account, and an elegant new emboss ensued, aiming to give customers’ bathrooms an extra touch of luxury they can see and feel. Every detail of this product has been carefully considered, right down to the packaging. With KittenSoft, Georgia Pacific clearly offers the ultimate in luxury and design, but what about the price? “We understand the price of everyday household products such as KittenSoft are scrutinised, quite rightly in today’s economical situation, by the consumer,” explains Paul O’ Connor. “KittenSoft, as all of our products do, prides itself on being high quality but at a lower price point than some other, leading, nonIrish alternatives.”

Connacht Gold Connacht Gold is one of Ireland’s best loved brands in the dairy category. Connacht Gold dairy is supplied by select local farmers in the West of Ireland, one of Europe’s most natural and clean environments for dairy production. The grasslands of Connacht give Connacht Gold dairy products their unique rich taste and flavour. Connacht Gold is the leading

Connacht Gold dairy is supplied by select local farmers in the West of Ireland, one of Europe’s most natural and clean environments for dairy production.

brand in milk and cream in the West of Ireland (Source: ACNeilsen Markettrack, MAT, March 09). In the butter category, Connacht Gold’s range of butters is the number three brand nationally, growing at 9.2% volume annually to March 2009 (Source: ACNeilsen Markettrack, MAT, March 09). Connacht Gold continues to innovate, with the recent addition of Chocolate and Honey products to its range. Connacht Gold is a leading supporter of Irish milk suppliers and Irish jobs.

Kerrygold With the multiplicity of blends and competing connotations in the yellow fats sector, one brand has retained its clear, uncomplicated message, Kerrygold: 100% pure Irish butter. Unquestionably a household name in Ireland, the Kerrygold brand is owned by the Irish Dairy Board, a commercial dairy cooperative, which

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FUELS NEW to the Bord Na M贸na Convenience Range of Fuels #LEAN #ONVENIENT TO 5SE s .ATIONAL !DVERTISING 02 #AMPAIGN #!,, /52 &5%,3 (/4,).% /. 1850 744 755

Promoting Irish Excellence

Guaranteed Irish Limited, 1 Fitzwilliam Place, Dublin 2, Ireland. Tel: (01) 661 2607 Fax: (01) 661 2633 E-mail: info@guaranteedirish.ie Web Site: www.guaranteedirish.ie

July/August09Retail

News Special Report: Buying Irish

exports and markets Irish dairy products abroad. Today, Kerrygold has loyal consumers in over 60 countries around the world, stretching from North America to Australia,t Russia to South Africa and throughout Europe. In Germany, Kerrygold is the number one but- Flahavan’s is Ireland’s favourite porridge and has a loyal Irish customer base with over 1m servings ter brand. of Flahavan’s consumed nationwide each week. each week. The delicious range of oatbased products offer great value for money and are simply good for consumers. Flahavan’s products are 100% Irish and are available nationwide.

Erin Foods Erin Foods is an Irish company which actively seeks to bring innovation and excellence to the Irish market. The Erin range of sauces, meal mixes, gravy, savoury rice and no soak peas are all manufactured in Ireland. Erin Foods is a sister company to Batchelors. Both companies jointly employ over 240 people directly, while also contributing to significant downstream employment. Recent research points to increased

Unquestionably a household name in Ireland, the Kerrygold brand is supported by TV advertising and in-store promotions.

Kerrygold’s success is clear-cut. It is ‘real’ food, 100% natural, with no additives beyond salt for flavour. In Ireland, Kerrygold claims a market share of over 46% and is supported by TV advertising and in-store promotions.

Flahavan’s Flahavan’s have been operating their oat mill in Kilmacthomas, Co. Waterford, for over 200 years, making it one of Ireland’s longest private Irish family-run food businesses. Flahavan’s is Ireland’s favourite porridge and has a loyal Irish customer base, with over 1m servings of Flahavan’s consumed nationwide

consumer demand for Irish manufactured brands in the grocery market. As unemployment is projected to steadily rise, Irish consumers will increasingly seek Irish brands in an attempt to remain strong in the face of this threat. More recently, the Erin portfolio was extended to include a delicious range of premium ready-to-pour sauces in microwaveable pouches, plus tasty and convenient Risotto and Cous Cous products, the perfect accompaniment to summer salads and barbeques.

The Erin portfolio was recently extended to include delicious Risotto products.

Erin Foods is an Irish company which actively seeks to bring innovation and excellence to the Irish market.

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July/August09Retail

News Special Report: Buying Irish

Seafood Under Pressure? THE Irish retail market, like all food categories, is facing significant changes due to the current recessionary pressures. According to the latest Taylor Nelson Sofres World Panel data, the seafood market has decreased by 5% in the first quarter of 2009. The primary driver behind this decline is a reduction in the purchasing frequency of consumers. Coupled with this, there has been a significant increase in the volumes of frozen fish, driven by the lower cost associated with this category and the high level of promotional activity in this sector. Frozen fish now accounts for 41% of the seafood market, up from 39% in the same period in 2008. The growth in frozen seafood consumption has benefited the discount retailers in particular and they now account for 15% of the total frozen seafood market. The seafood market has not been exempt from the issue of cross border trading and it is estimated that 2% of seafood sales are now conducted in Northern Ireland. This is significantly lower than a number of other categories but has grown from virtually zero in the past. Within the fresh seafood category, salmon is the only species in growth, with sales increasing from 41% to 46% of the market. The fresh salmon market is currently valued at €58m. Within the fresh fish segment, there is a move away from sales at the wet fish counter to pre-pack sales, which now account for 63% of all fresh fish sales. While pre-pack formats may offer an opportunity for an increasing level of branded products, it is private label sales that remain dominant.

Branded players traditionally focused on the smoked fish category but all branded players have lost market share in the first quarter of 2009. Private label products now account for over 73% of all smoked fish sales. Branded operators are under increasing pressure to differentiate their product from private label if they are going to continue to compete in this sector, as private label product is on average 25% cheaper. Within the smoked category, salmon again is the number one species, accounting for 78% of this market valued at €20m. The main brands operating on the Irish market are focused in the smoked seafood segment. Nolan’s is the dominant brand, with just over 10% of the category. The Seastar and Carrowkeel brands, which are operated by the Carr’s Group, account for 7% of the market between them. The remaining 10% market share is shared between an array of smaller brands.

Cafédirect: Ireland’s Only 100% Fairtrade Hot Drinks Company AS the Fairtrade hot beverages market continues its accelerated growth, Cafédirect, Ireland’s only 100% Fairtrade hot drinks company, is rolling out a number of exciting brand initiatives. This June, Cafédirect is unveiling a complete re-design of its portfolio, coupled with a new logo. “Part of our brand communications strategy this year is the launch of striking new packaging that captures the pride and passion that Cafédirect growers put into their tea, coffee and cocoa – expertise that resulted in 8 Great Taste Awards in 2008,” says Nicola Pearson, Cafédirect’s Head of Marketing. “Our new bold and bright packs will give us greater shelf prominence within the dynamic Fairtrade hot beverage market and help communicate our strong point of difference.” Cafédirect’s new look features authentic tools used by growers in cultivating and harvesting crops. The supporting grower quotes expresses the depth of Cafédirect’s unique grower relationships, emphasising the importance of Cafédirect’s role in facilitating the achievement of such outstanding quality. For example, Rich Roast Fresh Ground Coffee, which is roasted here in Ireland under license by Bewleys in Dublin, will see its packing revert from plain red to a much more vibrant pack displaying a husking machine, as used by growers such as Emiliana Aligaesha, who visited Ireland during Fairtrade Fortnight to see coffee beans that she grows go through the roasting process. At the same time, its three sub brands, Cafédirect, Teadirect and Cocodirect, unite under one integrated Cafédirect brand. “By bringing all our products together under the Cafédirect umbrella, we’re creating consistency across the range, leveraging the power and loyalty of the parent brand and helping consumers find our products in-store,” adds Pearson. As part of its brand building programme, Cafédirect will be rolling out a number of new products over the coming months and has confirmed it will be launching an innovative above the line campaign over the sum-

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July/August09Retail

News Interview

Paul Kerrigan, Delivered Retail Director, Musgrave Wholesale Partners, on the changing face of Daybreak.

A New Dawn for Daybreak Daybreak

has recently unveiled a stunning new brand identity and store format, which has already been rolled out to over 20 of its 150 stores across the country, with more to follow. Paul Kerrigan, Delivered Retail Director with Musgrave Wholesale Partners, who operate the Daybreak franchise, talks us through the decisions behind the new look and highlights why Daybreak is set to thrive, despite the recession. How has the current economic climate affected the c-store sector? The convenience sector is going through a difficult time and sales are down significantly from last year. Convenience stores need to adapt their offer to suit today’s consumers, who are looking for increased value for money, good quality food and beverages to go at an affordable price and a convenient range that offers the consumer what they need in today’s environment. For those retailers who are willing

and need to invest in their stores to survive in this competitive market, they are finding it harder to finance their developments, as the banks are not lending in today’s environment. Any retailer in this environment, regardless of size, needs to minimise their costs and make a clear value offering to the consumer. It’s definitely a challenging time to maintain and grow profit margins. However, if you are with the right partner, you will outperform the market and protect your profits. How is Daybreak responding to the current economic situation? Daybreak commenced its brand work in early 2008 and worked very closely with Interbrand and our Daybreak retailers in order to develop the brand to meet the needs of the everdemanding consumer. We carried out extensive consumer and retailer research in order to understand the changing market and to ensure that our offering would meet the needs of the changing consumer. This led

to the development of a vibrant new brand identity and store format, which we recently launched in Damien and Nuala Osborne’s store in Gorey, Co. Wexford, and to date we have developed a further 20 stores in this new brand format. The newly branded stores are trading exceptionally well and are outperforming the market in a substantial way. The new brand work is not only meeting the needs of the consumer but is also supporting our retailers to maximise their profitability by controlling their costs and also by emphasising Daybreak’s value for money and excellent food to go offering. You mentioned that offering value for money is much more important in the current climate. How is Daybreak achieving this? Value for money is extremely important in today’s climate and it is essential for our retailers to have a very strong value statement within their stores. In order for our retailers to

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July/August09Retail

“Any retailer in this environment, regardless of size, needs to minimise their costs and make a clear value offering to the consumer… However, if you are with the right partner, you will outperform the market and protect your profits.”

offer the right value to the consumer, we have significantly up-weighted our promotional activity and are also passing on all of the discounts that we have negotiated with our suppliers. For example, we have introduced a new promotional theme called ‘Double Deals’, which will run throughout the year. The idea behind the Double Deal offers is to pair everyday items that go well together and deliver them at a great, eyecatching price that offers real value for money to the consumer. We have run this type of promotion for coffee and biscuits, pizza and wine, cereal and juice, all of which are getting a great response from retailers and consumers alike. We are also running an extensive advertising campaign on local radio stations across the country to promote these Double Deal offers. This is important to us as we strive to make the Daybreak

News Interview

brand synonymous with value in the mind of the consumer. Added to that, with our new store format, we have introduced new signage solutions and layouts that allow us to highlight our special offers with greater impact in-store. We’ve also developed an innovative software tool that Food-to-go remains an extremely important profitability allows our retailers driver for convenience stores. to create their own We have, for instance, introduced Point-of-Sale material for local offers, a new hot and cold sandwich range which has been very well received by developed specifically for Daybreak our retailers. and extensively taste-tested by consumers. We’ve also introduced a new Is food-to-go still such a key area range of healthy options for breakfast, in the current climate, with, for an exclusive bean-to-cup coffee soluinstance, the decline of the buildtion, a smoothie and juice offering, ing trade? soup to go and some great evening Food-to-go has definitely been affected meal options for people who pick up by the downturn but it is still an dinner on the way home from work. extremely important profitability As I mentioned, a key priority for driver for convenience stores. We have us when we were developing these identified this area as a key way to ranges was to ensure that they were differentiate ourselves in the marcost effective and easy to implement. ket. Again, we carried out extensive To address this, we have a complete research as part of our brand develtraining programme and support opment, to make sure that our new pack in place for retailers so they can food-to-go range would match both our implement all that’s required and customers’ tastes and their pockets in then train their own staff in-store. the current economic climate. Our new store design also reflects Through all this, we kept a steady our increased focus on food-to-go. In eye on our retailers’ profitability and our new stores, we have enhanced made sure that the introduction and our menu systems and merchandispresentation of the various options ing solutions in order to showcase our would be easy and cost effective for new range and help drive business our stores to implement.

Damien and Nuala Osborne’s store in Gorey, Co. Wexford, sports the brand new Daybreak brand identity. 39

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July/August09Retail

News Interview

in this lucrative area. Of course, consumer tastes change all the time and we can’t afford to rest on our laurels. We will keep developing the food-to-go range to make sure our offering stays fresh, appetising and good value for money for the consumer.

closely with our retailers to offer support on staff rostering, staff entitlements and many other aspects to do with people management and costs. As mentioned earlier, convenience retailing is an increasingly crowded marketplace. What are the keys issues facing an independent retailer looking to partner with a symbol brand and what are you at Daybreak doing to address them? When it comes down to it, the most important factor for any independent retailer is to realise the real potential of his or her business by maximising their sales and profit potential. In many cases, that means taking advantage of the purchasing power, retail expertise and marketing of Daybreak, while maintaining the independence to operate in their own communities. One of the key points we emphasise when talking to retailers considering switching to Daybreak is the level of support our retailers receive when they are part of the group. As I men-

The cost of doing business in Ireland is extremely high, particularly in the areas of labour, property, local government charges and utilities. How can these be reduced? There’s strength in numbers when it comes to purchasing. Being part of a group as large as Musgrave means the retailer can avail of our collective bargaining power to negotiate not only product, but also group discounts on a range of areas, such as insurance, electricity, waste management, shop-fitting etc. to name a few, which is another reason for the independent retailer to partner with Daybreak. We go further than just providing access to group discounts, though. We pride ourselves on the fact that all our Territory Managers have extensive retail experience and that they work closely with our retailers to help them manage their costs. Each retailer has a designated Territory Manager who visits him or her every two to three weeks and who provides advice on how to minimise costs in areas such as payroll, equipment running costs and, in fact, all aspects of our retailers’ business. In the current environment, this support is more important than ever. As you say, Daybreak’s newly branded stores are trading labour is one of the highest costs exceptionally well and are outperforming the and therefore we work extremely market in a substantial way.

“In order for our retailers to offer the right value to the consumer, we have significantly up-weighted our promotional activity and are also passing on all of the discounts that we have negotiated with our suppliers.”

tioned earlier, every Daybreak retailer is assigned a designated Territory Manager who visits them every two or three weeks to focus on developing their business and maximise their true sales and profit potential. Retailers also have the support of the extensive expertise of the wider Daybreak team, including marketing, information technology, human resources, finance and store development. Of course, now more than ever the cost and effort of re-fitting their store is a critical factor for retailers. We’re proud that our development costs are the most competitive in the business. We also have a specialised development team that will manage the store development process right the way through to ensure it’s as seamless as possible. How do you see the Daybreak brand evolving over the coming months and years? We are very optimistic about the future. Daybreak has grown rapidly since we launched at the end of 2005 and we currently have 150 stores operating nationwide, with plans to grow to 200 in the next few years. We have over 20 stores in the new brand model and it is our expectation to increase this to over 30 by year end. We will continue to recruit retailers that want to become more profitable and be part of Ireland’s most progressive symbol in the market that we serve. We will continue to develop profitable ranges such as foodto-go, hot beverage etc. so that independent retailers maximise the potential from their business. With value for money so important now to the Irish consumer, it is vital we keep delivering the best possible promotions and prices that meet their demands. You can expect to see more initiatives like our Double Deals and excellent value for money in our stores so that consumers will continue to associate the Daybreak brand with value for money. We will continue to support our Daybreak retailers by reducing their costs, attracting new consumers to their stores and by maximising their profit potential. This approach has delivered up to now and we’re confident it will deliver in the future.

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July/August09Waste

Management

Delivering on the CSR Agenda Repak members have made a real impact on the Irish environment and meeting Irelandâ&#x20AC;&#x2122;s waste management obligations.

Since

1997, Irish companies have been charged with responsibility for paying for the recycling of the packaging they place on the market. Officially, all companies exceeding a pre-defined threshold (â&#x201A;Ź1m turnover and 10 tonnes of packaging supplied) have a legal obligation, under producer responsibility, to help fund the recovery and recycling of the used packaging supplied on their goods and services. Repak was established by industry as a not-for-profit producer responsibility scheme over 11 years ago to provide Irish companies with cost effective compliance with this legal obligation. However, Repak membership goes beyond this pure legal compliance and membership should be viewed with a measure of pride in what the scheme members have enabled and achieved as good corporate citizens. Over the last decade, over 2,000 members of Repak have contributed â&#x201A;Ź180m (â&#x201A;Ź29m last year alone) to fund Irelandâ&#x20AC;&#x2122;s national packaging recycling programmes. These contributions

have a very real impact on the Irish environment and on the lives of Irish consumers as Repak directly support: s $OOR TO DOOR RECYcling collection services for 1m households throughout Ireland. s /VER BRING BANKS nationwide for glass, cans, plastic and other recyclable materials. s RECYCLING CENTRES that accept used packaging and other household recyclables. s 0ROMOTION AND EDUCAtion of packaging recycling in schools, homes and businesses, through campaigns such as Repak Recycling Week, Repak Green Christmas and sponsorship of programmes such as An Taisce Green Schools, TidyTowns and National Spring Clean. Some of Repakâ&#x20AC;&#x2122;s achievements made possible through membersâ&#x20AC;&#x2122; funding in the last 11 years include: s !CHIEVING A PACKAGING RECYCLING rate of in excess of 64%. s 2ECYCLING OVER TONNES OF used packaging in 2008. s $IVERTING OVER M TONNES OF used packaging from landfill (the equivalent of enough waste to fill 1.9m waste trucks, creating a trail long enough to stretch from $UBLIN TO .EW 9ORK s !NNUAL SAVINGS OF NEARLY tonnes of CO2 emissions, the same as taking over 140,000 cars off Irish roads. This impressive level of packaging recycling was only achieved through the support of Repak members and other stakeholders and partners, such as the local authorities and waste collectors, as well as households and

businesses who separate their waste for recycling. Repak encourages its members to highlight to their customers what their membership has achieved in improving the environmental wellbeing of Ireland and making it as simple as possible for Irish people to recycle.

Packaging Prevention Repak is also focused on packaging prevention as well as funding packaging recycling in Ireland. As part of the focus on prevention in 2008, a major training initiative was launched to help Irish industry â&#x20AC;&#x2DC;design outâ&#x20AC;&#x2122; over-packaging on products. The nationwide training programme, which is the first of its kind, was developed in conjunction WITH &ÂŤ3 AND 203 #ONSULTING 0ACKAGING IS A COST TO BUSINESS and as such, minimising product delivery and packaging costs, as well as preventing unnecessary packaging, can impact on the bottom line. A good example of this is what many of the confectionery manufacturers (such as Cadburys, Mars and NestlĂŠ) did with their Easter packaging, where on average, they reduced their packaging by 20-30%. This was 41

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July/August09Waste

Management

achieved by reducing the box sizes, removing or reducing the plastic inserts, while ensuring greater recyCLABILITY THROUGH DESIGNING OUT 06# IN FAVOUR OF 0%4 FOR THE MOULD INSERTS and providing a greater range of information on recyclability.

New Waste Management Packaging Regulations In March 2008, new packaging regulations came into force which had implications for many retailers and brand holders. The key changes were a lowering of the threshold of obligation from 20 tonnes to 10 tonnes, as well as changes to the obligations on self compliers. To coincide with the changes in the regulations, Repak introduced a number of highly attractive compliance offers for new members. For newly obligated companies (between 10-20 tonnes) who were not brand holders or importers, Repak introduced a new minimum fee of â&#x201A;Ź400 euro, with a one off joining fee of â&#x201A;Ź PLUS 6!4 -EANWHILE THE BRAND

holders and importers minimum fee isâ&#x201A;Ź980, plus a joining fee of â&#x201A;Ź735, as well as having reduced reporting obligations.

Non Compliance Costs Retail Industry $ESPITE THE CHANGES IN THE regulations, Repak members account for approximately 60% of all the packaging placed on the market, with another 5% reportedly being self compliant. This leaves 35% of packaging outside of the respective compliance options, which essentially means that law-biding members supported the recovery of nearly 107% of the tonnes they placed on the market. As such, the cost of non-

compliance and lack of enforcement is now seriously eating into Repakâ&#x20AC;&#x2122;s ability to fund future growth in packaging recycling and costing compliant members in higher fees and charges. It also means that many retailers, wholesalers and distributors are effectively breaking the law and exposing themselves to potential fines and prosecution.

Economic and Financial Outlook As economic turmoil continues to hit both consumer spending and business incomes, the Repak board decided in late 2008 to defer any fee increases for 2009. As a result of reduced revenue and increased recycling costs, Repak, like many other businesses, is facing into challenging times in 2009. However, working with all stakeholders in partnership as in the past, the organisation is confident it can ride through these challenging times and continue to deliver Irelandâ&#x20AC;&#x2122;s packaging recycling targets.

FSM Cut the Cost of Food Waste &//$ 3URPLUS -ANAGEMENT ,IMITED (FSM) is an Irish owned company who specialise in recovery and recycling of short-dated and out-ofdate products and packaging for the manufacturing, wholesale and retail food and drinks industry. FSM have 10 yearsâ&#x20AC;&#x2122; experience in the handling of packaged food. This experience and knowledge of the problems faced by the food industry with surplus product enables FSM to provide a service that is not only more cost effective than composting and landfill, but also the most environmentally compliant method of handling food. FSM operate two plants in county Meath. Their Category 3 Intermediate 0LANT IN 4RIM IS LICENSED BY THE $EPARTMENT OF !GRICULTURE &OOD for the recovery of packaged food, the only one of its kind in Ireland (EC )2, )$ #ATEGORY MATERIAL APPLIES to any food from animal origin: meat products, yogurt, milk, butter, cheese, spreads, fats, pet food, meat soups etc. Their other plant in Summerhill is licensed for the recovery of non-meat

products for use in the animal feed, pet feed, high quality compost and bio diesel industries. Using FSMâ&#x20AC;&#x2122;s own specialised fleet of trucks, they collect product from manufacturers, wholesalers and retailers right across Ireland. FSM currently supply their retail collection service to over 250 supermarkets throughout Ireland and Northern Ireland. They have exclusive contracts with Musgrave Group and Sainsburyâ&#x20AC;&#x2122;s (NI) to handle all food from their stores and distribution depots, as well as being subcontracted by recycling companies to handle all food from their contracts, which include Tesco Ireland, Superquinn and others. FSMâ&#x20AC;&#x2122;s red and green bin system for supermarkets provides retailers with compliance with regard to the $EPARTMENT OF THE %NVIRONMENT S Waste Management (Food Waste) Regulations 2009 draft and the $EPARTMENT OF !GRICULTURE S !NIMAL "Y 0RODUCTS LEGISLATION The system involves the supermarket

separating their food waste into two different coloured bins: 2ED "IN FOR 0ACKED -EAT "EVERAGES 9OGURTS *UICES -ILK 2EADY -EALS "UTTER 3PREADS Soups. 'REEN "IN FOR &RUIT 6EG Biscuits, Bread, Confectionery, #AKES 0ASTA 2ICE #EREALS AND ALL dry food. No glass products are allowed in either red or green bins. The benefits of the FSM system over other services available are the following: s #HEAPER THAN LANDFILL s &ULLY COMPLIANT WITH REGARD TO LEGISLATION s ,AUNDERED BINS ON SITE AS BINS ARE TRANSFERRED ON EACH COLLECTION s .O UN PACKING OF PRODUCTS REQUIRED s )NCREASES RECYCLING FIGURES

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“IMMINENT BAN ON FOOD WASTE TO LANDFILL” Retailers - are you prepared?

Food Surplus Management Limited are specialists in the recovery and recycling of short dated and out of date packaged food. Fully licensed operators offering a fully compliant service in line with Food Waste Regulations 2009 and Animal By Products 1774/2002. Provide retailers with laundered bins for the collection of packaged food. No depacking involved. Retailers always have clean bins on site. FSM offer a cost effective and environmentally and legally compliant alternative to composting and landﬁll. Reduce waste costs by a minimum of 25%.

Products Handled: Packed meats, yogurts, milk, butter / cheese, beverages, juices, ready meals, soups, fruit / veg, bread, cakes, cereals, biscuits, confectionery, pasta / rice, all dry food.

Contact us NOW for a FREE quotation: Food Surplus Management Ltd, 17A Oaktree Business Park, Trim, Co. Meath. Ph: +353 46 948 3002 Fax: + 353 46 948 6750 Email: info@fsm.ie

www.fsm.ie Marks & Spencer now accepting One4all Marks & Spencer is delighted to announce that it is now accepting One4all gift vouchers and gift cards in all 20 of its stores in the Republic of Ireland. The retailer, which is celebrating 30 years in Ireland this year, will be accepting the vouchers/gift cards across all its departments, including clothing, furniture and food.

balestrap.com

One4all CEO, Michael Dawson said: “We are absolutely thrilled to add Marks & Spencer to the list of stores where One4all Gift Cards and Gift Vouchers can be used. The multitude of food, clothing and interiors goods at M&S means One4all shoppers are truly spoilt for choice.”

* Best Prices * Large Selection * Next Day Delivery Nationwide Mayo Dublin Cork (094) 938 2988 (01) 807 4060 (021) 431 2310 Mobile (086) 807 7511 For any Recycling & Reduction Equipment go to

cecobalers.com (or contact us at one of the above numbers)

*Balers *BinPresses *BagPresses

Page 43.indd 1

David Walsh, Group Retail Manager, The Gift Voucher Shop and Carmel Breheny, Marketing Manager, Marks & Spencer Ireland

24/07/2009 10:16

July/August09Back

To School - Stationery

School Rules Stocking up on stationery for the Back To School period brings added profit opportunities in-store.

that, in many cases, ‘Pritt Stick’ directly replaces the word ‘glue’ in conversation. Safe, solvent-free and made from natural resources, including sugar as a core ingredient, Pritt Sticks have always been immensely popular with children and have become a big hit in office culture too. Like any super brand, Pritt has earned its status by listening to what people want out of an adhesive product and rapidly delivering it. The brand has never rested on its laurels and has always been on the cusp of innovation and creativity.

pencils, highlighters and permanent markers. “BIC has global experience and credibility in delivering Back to School solutions to retailers to help them maximise sales. We’re conmost retailers will fident that this year’s campaign stock up on lunchbox treats for won’t disappoint,” notes Yolande de the busy Back To School period, Trogoff, BIC Marketing Manager. you shouldn’t forget that the rush “While BIC is renowned for reliaround this time is based on kids able, affordable products, this year’s re-entering the education system, Back to School range clearly demwith attendant profit opportunities onstrates that we also have innovain your stationery section, which tion and fun in mind when designcan bring added footfall and turnoing new products.” ver to your store. Still a firm favourite for everyday use, the Cristal Family Henkel Consumer range covers all writing needs and Adhesives remains a symbol of quality and Whether at home, at school or in Every year, over 130m Pritt Sticks are sold the office, Pritt Sticks, from Henkel around the globe as the glue continues to grow in durability. This year, BIC has popularity. extended the range even further Consumer Adhesives, have revoluwith two new innovative products. tionised our gluing habits ever since Pritt’s long-term goal is to conNew BIC Cristal Large is ideal for Henkel launched the world’s first tinue the tradition of coming up with bold, vivid and even writing. The pen glue stick in Dusseldorf, Germany in new ideas and concepts that meet has a transparent hexagonal barrel 1969. 40 years later, a Pritt Stick is the needs of everyday life, for those which provides a visible ink level and purchased almost every second of the who use Pritt on a daily basis. Time comfortable handling. For steady, day, testament to the brand’s populardoesn’t stand still and neither will smooth writing, the BIC Cristal Clic ity amongst both children and adults. Pritt: its products will become strongGel, which has a retractable nib and Since its launch, more than 2.5 biler, faster, safer and more colourful gel ink that glides over paper, is the lion Pritt Sticks have been manufacas time goes on, which is why it will perfect pen for general use. tured: enough glue to leave a trail of always be the nation’s favourite glue. Popular with children, the BIC adhesive up to Mars and back. Every Kids range features a number of excityear, over 130m Pritt Sticks are sold ing colouring products that will keep around the globe as the glue continBIC them amused for hours. From splinter ues to grow in popularity. The brand Leading stationery brand, BIC is set proof pencils, to washable ink felt tips was even the first to be awarded a to build on last year’s Back to School and wax free crayons in a selection of “Space Proof Quality” certificate when success, with its fantastic product vibrant colours, they are not only durait was used at the International Space range for 2009. BIC’s must-have ble, but comfortable and easy to use. Station (ISS) in 2001. recommendations for the new school For fun at school or at home, BIC The super-brand has become term include the Cristal family, BIC Kids Whiteboards give children the such an integral part of everyday life Kids range, Tipp-Ex, mechanical

While

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Henkel Ad

24/07/2009

09:26

Page 1

July/August09Back

To School - Stationery

chance to draw, erase and draw again. For older pupils, BIC mechanical pencils will mean less fuss sharpening and more fun writing and drawing. The BIC Matic range features classic, comfortable and fun mechanical pencils for everyday use in the classroom. Available in a variety of funky colours, the pencils have a built in eraser for convenience. Celebrating it’s 50th anniversary this year, Tipp-Ex products remain essential for going back to school. BIC’s fantastic range is perfect for everyday use, ranging from the ever popular, traditional Tipp-Ex fluid, to the fun Pocket Mouse and more recent additions such as the Micro Tape Twist. With the added advantage of a rotating cap protecting the tip from damage, the Micro Tape Twist comes in bright, orange, purple, blue or green casing. For teachers, the marker range offers everything from whiteboard markers to permanent markers, as well as a variety of highlighters. BIC’s range of permanent markers have been developed in a range of colours, sizes and styles and with a rub-

berized grip, which provides increased comfort whent crafting, writing and marking. To ensure real in-store stand-out, BIC has created an eye catching range of BIC World FSDUs, depicting vibrant cartoon images of space and space ships. BIC has BIC’s range of sticky notes combines functionality and also launched a organisation with funky, eye-catching designs. number of innovathe consumer something a little differtive new products ent, from funky colours to sticky note to expand its exciting range of reposipads with pens,” comments Yolande tionable notes. BIC’s range of sticky de Trogoff. notes combines functionality and The latest range extension sees the organisation with funky, eye-catching addition of Home Notes and School designs. The range offers an easy-toLabels. The range also includes BIC use sticky note solution for everyone, Ecolutions Recycled Notes, Plain as well as great value for money. Notes, Coloured Notes, Multi Notes, “As well as continuing to offer Shaped Notes, Easy Notes, Indexes consumer favourites such as plain and Large Notes. sticky notes, our new products offer

Premier – Moving Stationery ESTABLISHED in 1978, Premier Stationery prides itself as Ireland’s leading stationery company with the highest quality products for all ages, homes and work places. This family-run business has developed and supplied long-standing favourite stationery products such as Crafty Kids, Premier Activity, Ormond, Scoil, MailMaster & Calcul8tor, to name but a few. Other superior brands include Icon & Icon Apprentice, Premier’s elite artists collection that includes an extensive range of surfaces, mediums, brushes and accessories for both professional and recreational artists. World of Colour is aimed at a younger audience: this brand incorporates drawing and painting mediums, colouring & drawing books and an extensive range of craft items.

Premier Depot, for all stationery requirements, from staplers to pens, bubble wrap to index dividers and display books to scissors, is a favourite in all offices and homes alike. Newer brands to have come on the market include HobSession, for hobby enthusiasts, Student Solutions, targeted to academic audiences, ProForm with its extensive range of labelling and printing solutions, and Stikie, with a range of adhesive tapes, flag notes, stikie tack and glues. Premier Stationery is now the exclusive distributors for Zebra Pen Products. Look out for the Premier Stationery stamp of approval and you can be guaranteed it is another quality product from Premier Stationery. Moving Stationery…. Premier Stationery, Nenagh, Co.Tipperary T: +353 (0)67 63850 F: +353 (0)67 63851

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NEW IRISH POTATOES FROM CO MEATH HIT MARKS & SPENCER SHELVES Marks & Spencer have introduced Irish Maris Peer new potatoes to their ƐŚĞůǀĞƐ͘ dŚĞ ƉŽƚĂƚŽĞƐ ŚĂǀĞ ďĞĞŶ ŐƌŽǁŶ ďǇ ĨĂƌŵĞƌ &ƌĞĚ ^ŚƵƩůĞǁŽƌƚŚ ŝŶ Gormanstown, Co Meath. Stewart Nisbet, Marks & Spencer Head of Foods for Ireland said: “We are really pleased to be introducing another Irish product to our shelves from Ă ƚĞƌƌŝĮĐ WŽƚĂƚŽ 'ƌŽǁĞƌ͘ ƵƌƌĞŶƚůǇ ϭϱй ŽĨ ƉƌŽĚƵĐƚƐ ŝŶ DΘ^ ĨŽŽĚ ŚĂůůƐ ĂƌĞ ĨƌŽŵ ƚŚĞ ŝƐůĂŶĚ ŽĨ /ƌĞůĂŶĚ ĂŶĚ ǁĞ ĂƌĞ ŚŽƉŝŶŐ ƚŽ ĚŽƵďůĞ ƚŚŝƐ ƚŽ ϯϬй ŝŶ ƚŚĞ next few years.” The potatoes are packed by Craigavon based packing company Wilson’s Country, who will also be providing Marks and Spencer with New Season Rooster potatoes later this year. ƚ ƉƌĞƐĞŶƚ /ƌŝƐŚ ƉƌŽĚƵĐĞƌƐ ƐƵƉƉůǇ ŽǀĞƌ ϱϬϬ ƉƌŽĚƵĐƚ ůŝŶĞƐ ƚŽ DΘ^ ƐƚŽƌĞƐ ŝŶ Ireland, including poultry, red meat, milk, cheese, bread, smoked salmon, fruit, salads and vegetables.

L-R: Stewart Nisbet, Marks & Spencer; Ruth Pollock, Wilson’s Country and Fred Shuttleworth, Irish Potato Grower

CONSUMERS CLEAN UP AT THE VANISH SUPERMARKET TROLLEY DASH IN CORNELSCOURT! Vanish played host to a Trolley Dash on Tuesday morning in Dunnes Stores Cornelscourt, in which contestants raced against the clock to get all the items from the shopping list provided.A Dale Winton style host did a running commentry as 6 contestants made their way through the aisles on a quest to pick up everything from toilet paper to a large LQÁDWDEOH SLQN guitar! Crowds gathered to see the event, which was truly fun and exciting and all 6 contestants were rewarded with Dunnes Stores shopping vouchers.

July/August09Back

To School: Best Sellers

School Craze One of the easiest ways to restore some of the balance is to bring structure back to mealtimes. As perhaps the most important meal of the day, breakfast is at the forefront of many Back To School shopper’s minds. To capitalise on this key insight, Kellogg’s is set to launch a massive through-the-line consumer campaign, entitled ‘Sorted 4 School’. Running through August and September, ‘Sorted 4 School’ will consist of TV, radio and outdoor advertising, instore POS and a substantial trade promotional plan that aims to deliver

With the busy Back To School period fast approaching, retailers need to stock up on children’s lunch box essentials.

Parents

throughout Ireland spend an average of €376 on each child at Back To School time, according to recent research, carried out by Bank of Ireland Life, in association with online parent resource Schooldays.ie. While uniforms, textbooks and assorted educational costs account for the lion’s share of Back To School spending, retailers should capitalise on this busy period by ensuring that they have a dedicated Back To School section in-store, focusing on everything from stationery (see separate feature on Page 44) to lunch box essentials. Indeed, Kellogg’s describe the Back To School period as “the next biggest shopping season to Christmas”, undoubtedly a crucial time for the grocery retail trade. A habit-forming time, it marks the start of a new routine for many consumers.

Kellogg’s Corn Flakes, a perennial favourite with Irish consumers.

day means that families with children sometimes don’t have time for three balanced meals per day. This lack of structure comes sharply into focus as the Back To School period draws in from early August. Parents want to get organised and be ready for the new school year. However, with so much to do, this is often a daunting task.

Kellogg’s Coco Pops, one of the top five cereal brands in Ireland.

Kellogg’s During the summer holidays, routine tends to disappear; as parents relax and children are permitted food that they might not ordinarily be allowed to eat during school time. Later morning rises and lack of structure in the

Kellogg’s Rice Krispies, one of the nation’s favourite cereal brands.

added-value on the core range of Kellogg’s cereals and snack bars. Ready to eat cereal is the undisputed favourite breakfast choice for school-going children of all ages (Source: Irish Universities Nutrition Alliance Food Consumption Surveys; 2005, 2007). Kellogg’s key kids and family brands, Kellogg’s Corn Flakes, Kellogg’s Rice Krispies and Kellogg’s Coco Pops account for three of the top five cereal brands in Ireland (Source: ACNielsen), while its snack bars, including Kellogg’s Cereal &

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July/August09Back

To School: Best Sellers

Sqeez is delighted to announce its partnership with The MakeA-Wish Foundation of Ireland. The brand welcomes this wonderful opportunity to contribute to granting wishes Kellogg’s Rice Krispies Squares, a clear winner in the for special children cereal snack market. living with life-threatening illnesses and will Milk Bars, Kellogg’s Nutri-Grain and Kellogg’s Rice Krispies Squares, dominate the cereal snack market. The iconic, playground friendly Love Hearts brand from Swizzels Matlow Ireland.

HJ Heinz Heinz Snap Pots are ideal for consumers who seek an even quicker way to enjoy Heinz iconic Baked Beanz and Spaghetti Hoops. Both Heinz Baked Beanz and Spaghetti Hoops are available the truly innovative Snap Pot format. Each Snap Pot pack offers four individual 200g portions that are ready from the microwave in just one minute, making them ideal for busy families and lunch and snack occasions both at home and at work. In addition, because Heinz Snap Pots

be proud to promote it on-pack. Look out for the special packs, which will be available instores nationwide from September. This autumn will also see exceptional value in-store, with fantastic offers on many packs, including an additional 25% extra free on all 200ml Sqeez packs.

Swizzels Matlow Ireland Back To School remains Swizzels Matlow’s second best trading period for children’s confectionery, after experiencing an 11% rise in sales during the autumn school term in 2008. The confectionery stalwarts put their success down to aggressive value-for-money promotions, high profile marketing, Both Heinz Baked Beanz and Spaghetti Hoops are and a continued investavailable in the truly innovative Snap Pot format. ment in new product development. This ensures they remain the market leaders for can be popped directly into the microfun and tasty sweets that capture wave, there is no the need to hover by children’s taste buds. the hob or add to the washing-up! Swizzels Matlow Ireland has introduced a selection of exciting Sqeez/Batchelors new products, including Fun Gum Sqeez, the number one Irish made 15c Wine Gummies, Fun Gum Giant juice brand, continues to deliver Strawberry Jellies, Giant Skeletons exactly what parents want during the and Giant Sweet Tarts. Back To School season. With top qualAll of Swizzels Matlow’s major ity pure orange juice and pure apple confectionery brands focus on euro juice in a number of pack formats, denominations, which reflect chilSqeez is a firm favourite with Irish dren’s pocket money amounts. They families.

sell at either 5c, 10c, 15c, 20c or 25c. Swizzels Matlow continues to promote throughout all trade sectors and has been implementing a particularly aggressive promotional campaign this year. Retailers should look out for its recession busting Back To School promotion in August and September. Their combination of iconic playground friendly brands, such as New Refreshers, Love Hearts and Drumstick Lollies, combined with new innovative sweets, including the Stinger bar, ensure that they remain the number one sugar confectionery choice for thousands of kids throughout Ireland. Swizzels Matlow Ireland’s advice to retailers is to stock up early so you are well prepared in advance for the Back To School flux of sales, and to select iconic brands that are most favoured and trusted by consumers. Amid the recession, well recognised, nostalgic brands are really performing – retailers should remember that brands sell, and quality brands sell even better. All Swizzels Matlow Ireland products are produced with no artificial colours, an important step in responding to consumers’ needs, while not compromising on their tradition for excellent quality confectionery.

BR Foods Pom-Bear are teddy bear shaped potato snacks which appeal to kids of 4-8 years old. Pom-Bear snacks guarantee kids fun, while also keeping parents happy. They are gluten free, with no artificial flavours, colours or preservatives, are only 49

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To School: Best Sellers

Jacob Fruitfield Food Group Tuc are expanding further into the snacking sector with the launch of their exciting new range of Tuc Craks. Tuc is number two in the plain savoury category, claiming a 17% value share, and is hoping to capitalise on the growing Irish crisps and snacks market. Tuc Craks is a range of bite sized savoury snacks, Pom-Bear are teddy bear shaped potato with a crunchy kick and excitsnacks which appeal to kids of 4-8 years old. ing flavours to match. They have a unique texture and shape from Tuc lightly seasoned and now contain 50% less saturated fat. The range includes 19g single serve bags in Original, Cheese & Onion, Salt & Vinegar and Prawn Cocktail flavours, and six-packs in both Original and Cheese & Onion. A strong promotional campaign has been planned for 2009 with both on-pack promotions and product sampling.

Horgan’s Delicatessen Supplies Mini Babybel is an instantly recognisable brand with its distinctive red waxy jacket. Its novel ‘zipper’ opening

Tuc Craks is a range of bite sized savoury snacks, with a crunchy kick and exciting flavours to match.

now in all major retailers at an RSP of €1.69. The brand will be heavily supported with a high intensity above-theline campaign on both TV and cinema. This will also be supported through an online campaign at www.snacklove.ie. Tuc have also just launched their savoury crackers in a new mini format, with Tuc Minis available in a convenient 85g on-the-go snack pack.

McVitie’s Now 75 years old, McVitie’s Penguin continues to grow in popularity, with sales up 39.2% (Source: ACNielsen, MAT, 52 w/e April 19, 2009). Enjoyed by families and young children, McVitie’s Penguin Bars and their quirky on-pack jokes are still a household favorite across Ireland. “The success of McVities Penguin is down to the reassurance the brand offers to families,” states Darren Abbott, McVitie’s Group Brand Manager. “Penguin bars not only offer lunch box convenience and value for money but also an enjoyable and balanced treat with no hydrogenated vegetable oil, known for causing trans fats, or artificial colours or flavours.” The latest addition to the iconic McVitie’s Penguin range is McVities Penguin Wafer. Available in packs of nine, the new McVitie’s Penguin Wafer will appeal to parents who want to give their kids a tasty, lighter treat. The delicious milk chocolate covered wafer bars are filled with chocolate cream and only contain 93 calories, with no artificial colours or flavours. McVitie’s Minis, the mini versions of the nation’s favourite McVitie’s biscuits, are available in handy snacksize bags, perfect when consumers are out and about, and the ideal convenient portion size for lunch boxes. The range includes McVitie’s Mini Chocolate Digestive, McVitie’s Mini Chocolate Hob Nob, McVitie’s Mini Chocolate Chip Cookie and McVitie’s Mini Jaffa Cakes.

Original, but are equally compulsive. To add to the excitement, these scrumptious new snacks are available in irresistible Sour Cream & Onion and Original flavours. These new packs are sure to jump off retailers’ shelves, with their vibrant Mini Babybel has all the natural flavour and nutritional packaging, which goodness of real cheese, making it a perfect lunch box clearly differentiates snack solution. the range. Packaged in a convenient 85g bag, they are idemakes it a fun cheese to be enjoyed al for on-the-go snacking and perfect at any time. Mini Babybel has all for sharing. Tuc Craks are available the natural flavour and nutritional goodness of real cheese, making it a perfect lunch box snack solution. Mini Babybel Original is sold in nets of six and 12, and the Light and Cheddar varieties are sold in nets of six. Mini Babybel is supported by ongoing TV advertising as well as strong trade Now 75 years old, McVitie’s Penguin Bars and their quirky on-pack jokes are still promotions. a household favourite across Ireland. 50

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July/August09Drinks

News

Spanish Wine Tasting in Dublin THE Economic and Commercial Office of the Spanish Embassy is pleased to announce their Annual Spanish Wine Tasting in Dublin. The largest selection of Spanish wines on the island, over 300, will be on show at ‘The Rising Stars 2009’, with the collaboration of 20 Irish

importers and 10 Spanish wineries. All of them will prove why Spanish Wines are leaders in innovation and tradition, with an excellent quality-price ratio and many wonderful gastronomic matching opportunities. Outstanding grapes, a wide range of climates and soils, a perfect combination of traditions and innovation: maybe that’s why Spain is the third largest exporter of wines in the world. Date: September 3, 2009 Place: Shelbourne Hotel, Ballroom (separate entrance), 27 St. Stephen’s Green, Dublin 2. Blog: www.therisingstars2009.blogspot.com Contact: Economic and Commercial Office of the Spanish Embassy, 35 Molesworth St Dublin 2. Tel: +353 (0)1 6616313. Email: dublin@mcx.es

Guinness’ Signature Success PICTURED in Café En Seine in Dublin is broadcaster George Hook, model Andrea Roche and Business Development Manager for Guinness, Eamon De Burca, at the annoucement that Guinness have captured 250,000 signatures in just one month, in a bid to reach 1m signatures through the summer months for the Guinness Signature campaign for the Arthur Guinness Fund. This significant milestone brings the Arthur Guinness fund to €625,000 just four weeks into the campaign. For every signature, up to 1m, received in pubs and bars around Ireland, Guinness will donate €2.50 to the Arthur Guinness Fund, which will be active from September 2009.

Water Winners

Absolut Arts

PICTURED are (l-r): Martina Gillen and Rebecca Coakley, golf professionals, with Marie Cooney, Director, Tipperary Natural Mineral Water, at Portmarnock Hotel & Golf Links for the launch of AIB Ladies Irish Open 2009. Tipperary Water was the Official Mineral Water Sponsor to the AIB Ladies Irish Open, for the second year, where some of the world’s bestknown professionals and the top nine amateur golfers from Great Britain and Ireland battled it out for the title.

AS part of its extensive marketing campaign for Absolut Vodka, Irish Distillers Pernod Ricard, distributors of Absolut in Ireland, have announced their sponsorship of the Visual Arts Programme of the internationally renowned Galway Arts Festival, where an exhibit from the Absolut Art collection will be featured. Brendan Buckley, Head of Vodka Marketing at Irish Distillers Pernod Ricard said “Our sponsorship of the Visual Arts Program reinforces our expansive relationship with the creative community and illustrates how Absolut continues to foster creativity both among the up-and-coming and established artists.”

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July/August09Ireland’s

Top Selling Wines

Wolf Blass

Jacob’s Creek

WOLF Blass has received over 4,000 awards and accolades at international wine shows since 1966, including winning the ‘Jimmy Watson’ Trophy, Australia’s most prestigious wine award, an unprecedented four times. In 2008, Wolf Blass was honoured with the acclaimed International Red Winemaker of the Year award at the International Wine Challenge (IWC) in London. In Ireland, Wolf Blass is the leading premium wine and Ireland’s leading Australian wine, and new Wolf Blass Yellow Label Sauvignon Blanc is the latest addition to the range. Distributed by: Edward Dillon & Co. Ltd.

IN 1847, a young Bavarian immigrant by the name of Johann Gramp planted the Barossa Valley’s first commercial vineyard on the banks of Jacob’s Creek. Johann’s legacy instilled a simple winemaking philosophy that gave birth to one of the world’s most popular wine brands. About 2m glasses of Jacob’s Creek wine are enjoyed around the world every day. Besides their traditional wines, they also pride themselves on the attention to detail given to Reserves and Sparkling wines. These are world class wines and are a fitting tribute to the heritage and achievements of Jacob’s Creek, a brand synonymous with the Barossa Valley and great Australian wines. Distributed by: Irish Distillers Pernod Ricard.

Torres Wines

Cono Sur

TORRES Wines continue to be the number one Old World wine brand in Ireland. The Torres range scales from entry level favourites Viña Sol and Sangre de Toro to the more premium Fransola and Mas la Plana wines. In 2009, Bodegas Torres became the first winery in the world to be placed on the ‘Green List’ printed by the highly regarded, Drinks Business Magazine. One of the primary objectives of the winery is to reduce its output of CO2 by 20%. Distributed by: Findlater Wine & Spirit Company.

CONO Sur is the fastest growing Chilean brand on the Irish Market. Cono Sur’s wines have a distinctive character of the New World, with a different and unique personality and style. Sales of Cono Sur in Ireland have remained high despite the tough trading environment and the brand is holding its share in the category. The winery is committed to producing high quality wines and this effort is not going unnoticed. The most recent honour bestowed upon Cono Sur was the Gold Medal awarded upon the 20 Barrels Sauvignon Blanc at the International Wine Challenge. Distributed by: Findlater Wine & Spirit Company.

Bend in the River

Mateus Rosè

BEND in the River is the number one German wine amongst Irish consumers. The distinctive bottle gives the wine stand-out on-shelf, while the wines themselves deliver on taste and quality. The Bend in the River has a loyal consumer base and is recruiting new followers every day. The brand has strong marketing support with regular TV and trade press advertising. The latest addition to the range, the Bend in the River Sparkling, has proved popular in Ireland – a great tasting alternative to a bottle of Champagne. Distributed by: Findlater Wine & Spirit Company.

MATEUS Rose is one of the world’s most iconic brands today and has gone from strength to strength here in the Irish market. Since its run of TV advertising last summer, the brand has enjoyed an upsurge in recall and a change in its consumer demographic. While always a popular brand within the Portuguese category, the brand is now being consumed by the younger consumer also. The style of the wine is light, young and fresh and thus appeals to all ages. Mateus, keen to keep up with the times, are introducing a new screw cap opening this August. Distributed by: Findlater Wine & Spirit Company.

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July/August09Ireland’s

Top Selling Wines

Viña Errazuriz

Oyster Bay

A FAMILY owned company for six generations and one of Chile’s top wine estates, Viña Errazuriz has now joined Cassidy Wines’ extensive portfolio of premium wines. Viña Errazuriz is committed to producing high quality wines and their efforts were rewarded in December with the double announcement that they had been selected as Winery of the Year 2008 by Wines of Chile and Chilean Wine Producer of the Year 2008 by IWSC in the UK. Distributed by: Cassidy Wines.

OYSTER Bay has defined the very stature and style of New Zealand wines. The philosophy at Oyster Bay is to produce fine, distinctively regional wines that are elegant and assertive, with glorious fruit flavours: wines that drink well within a year or two of vintage, yet possess the balance and structure to reward cellaring. Small wonder Oyster Bay has become Ireland’s top selling white wine from New Zealand. Distributed by: Cassidy Wines.

McGuigan

Mondavi

McGUIGAN is one of Australia’s most celebrated wineries, creating great tasting wines from some of the country’s best regions. Four generations of the McGuigan family have made wine their life. It is this passion and commitment to modern Australian winemaking that still drives McGuigan today. Distributed by: Barry & Fitzwilliam.

WITH the release of the Robert Mondavi Winery’s Cabernet Sauvignon in the late ‘60s, the world’s eyes were opened to the potential of the Napa Valley. The historic Paris tasting in 1976, where two former winemakers of the Robert Mondavi Winery won first prize, further supported this revelation. After 41 years, Robert Mondavi Winery still embodies its founder’s commitment to excellence, innovation and creative spirit, while continuing to produce wines that stand in the company of the world’s finest. Distributed by: Barry & Fitzwilliam.

Hardys

Nederburg Foundation

ESTABLISHED in 1853 in South Australia by Englishman Thomas Hardy, Hardys is an outstanding family wine business that grew to become one of the world’s great wine companies. The great Thomas Hardy legacy lives on today at the Hardy Wine Company. Quality, flavour and character remain the cornerstones of its contemporary wines while respect for Hardy family history ensures the wines benefit from the lessons of long tradition. Distributed by: Barry & Fitzwilliam.

NEDERBURG, South Africa’s most awarded winery, recently introduced The Nederburg Foundation range. Easy drinking wines, all in screwcaps, accessible in style and perfect with or without food, these wines are blended for consistency and quality. The two white blends are Chardonnay Viognier and Sauvignon Blanc Chardonnay with Shiraz Viognier and Caberbet Sauvignon Shiraz as the red blends. All retail at €9.99. Distributed by: Edward Dillon & Co. Ltd.

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July/August09Paper

Products

The Paper Trail Offering consumers good value is the key to success in the €133m paper products sector, with multi-buys and extra value packs proving extremely popular.

The

paper products market is valued at €133m (Source: ACNielsen Extended Scanning Data, MAT, May 09), but retailers and producers will have to be extremely conscious of their value proposition if that figure is to rise over the coming year. Now, more than ever before, Irish consumers are increasingly pricesensitive when it comes to everyday products, which includes the paper products sector. This has resulted in private label’s increased market share, as it is perceived as offering consumers products of a similar quality to branded items but at a more competitive price, while consumers are also trading up to multi-packs and are extremely conscious of price and value promotions. However, growth of disposable paper products is driven primarily by new product developments, with added value, premium products driving the market forward. An increased focus on the environmental impact of disposable paper products, allied to the ‘greening’ of Irish consumers, is likely to affect the paper products industry in the future, according to industry sources.

both soft on nature and on skin. With the environmental issue as prominent in Ireland as it is, this product has to date been a popular choice for households, as consumers attempt to “do their bit” for the environment. Lotus Olbas was also launched in 2008, a clever collaboration between Georgia Pacific’s Lotus facial tissues and Olbas Oil, combining the luxurious softness of Lotus tissues with soothing oil vapours. The tissues were embedded with tiny oil capsules that contain a special mixture of pure plant KittenSoft Ultra Wipe kitchen towel is the ultra oils, with ingredients includstrong diposable cloth on a roll. ing clove oil, eucalyptus, juniper berry and cajuput. This combination of natural ingrediGeorgia Pacific ents produces soothing vapours which Georgia Pacific produces many help to relieve congestion. Again, it has paperware brands that consumers proved another great success and the know and love: KittenSoft bathroom first of its kind. tissue; KittenSoft Thirstpockets; KittenSoft Thirst Pockets Inversoft EcoKind bathroom tissue; Household Towels remain one of Posies; Lotus Olbas and DEMAK’UP. Ireland’s leading household towel Indeed, the Irish company began its brands. KittenSoft Thirst pockets comproduction way back in 1927, and is bine unique designs with outstanding now Ireland’s leading manufacturer strength and absorbency. Each sheet and marketer of paperware products. traps moisture in microscopic pockets Innovators in their industry, in 2008 alone the company launched Inversoft EcoKind, bathroom toilet tissue that effectively closes the recycling loop. Inversoft is recycled from roll to core and so offers the consumer the chance to recycle and buy a recycled prodLotus Olbas combines the luxurious softness of Lotus tissues uct, which is with soothing Olbas oil vapours.

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Georgia Pacific

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The Big Irish Softie! Kittensoft, the No. 1 bathroom tissue brand in Ireland* has been re-launched with strong TV support communicating the new and improved Kittensoft our softest ever toilet tissue. Not only that, an elegant new emboss has ensued, aiming to give customersâ&#x20AC;&#x2122; bathrooms an extra touch of luxury they can see and feel. All this, and itâ&#x20AC;&#x2122;s made in Ireland.

*Nielsen: Extended Scanning Data, Volume Sales Jan - 14th June 09

July/August09Paper

Products

three trees are replanted to replace of air between layers every tree it uses – or simply for every of strong absorbent tree used, they replant three. Velvet tissue. 2009 will see is available in all major retailers and the brand supported will be providing a little bit of extra by strong promotional softness at this year’s Electric Picnic activity. Festival. KittenSoft Ultra Plenty, Ireland’s favourite kitchen Wipe kitchen towel is towel, has a unique honeycomb structhe ultra strong disture which makes it really strong and posable cloth on a roll. super absorbent when wet - it can even Designed for tougher be rinsed and re-used, making it the jobs, KittenSoft Ultra perfect household towel for any cleanWipe can be used, ing occasion. rinsed and re-used to complete the cleaning job. In 2009, KittenSoft bathroom tissue feels thicker, stronger and softer than it ever The Homestead paper range continues to be one has. Research and of the strongest categories within the portfolio, showing growth in both value and volume. development on the product resulted in new and improved KittenSoft – the the highest quality using 100% softest ever toilet tissue. Not only virgin pulp paper. The selection that, consideration of interiors was rivals any market leader, while taken into account, and an elegant remaining well priced in order new emboss ensued, aiming to give to compete successfully in the customers’ bathrooms an extra touch private label market. of luxury they can see and feel. With the move in the marEvery detail of this product has ket from smaller convenience been carefully considered, right down pack to larger family packs, to the packaging. With its cute kitten Homestead has introduced a and soft cushions, KittenSoft comnew 12-roll pack with an RSP municates the luxurious softness of of €5.99, which has proved the 2009 saw Velvet launching its new packaging, featuring the Three Tree Logo, assuring the the elegantly embossed tissue, which success story of the Homestead customer that three trees are replanted to has been evolving for 20 years, and paper range. The market has replace every tree it uses. in 2009 has truly reached its peak also seen a move away from softness. All this, and it’s made in cheaper kitchen towels to Ireland. the more premium, higher absorbent products, making “Homestead Absorb” their Homestead number one kitchen towel. The Homestead paper range continues “The continued performto be one of the strongest categories ance of the Homestead brand within the portfolio. Sales at the end in such a competitive market is of 2008 showed growth in both value a phenomenal result and gives and volume, which Homestead Brand a true insight into the core Manager Janice Gibney is very proud foundation of the brand’s existof, considering the amount of proence, to bring value home,” notmoted and extra fill brands within the ed Homestead Brand Manager, paper category which were available Janice Gibney. during the year. With sales amounting to almost €4m in 2008, accounting for nearly a SCA Hygiene quarter of overall Homestead sales in Products that year, the brand is truly enjoying 2009 saw Velvet launching success in this category. its new packaging, featuring The paper range, which includes the Three Tree Logo. This is Plenty, Ireland’s favourite kitchen towel, has a a variety of toilet rolls, kitchen towels Velvet’s stamp of approval unique honeycomb structure which makes it really strong and super absorbent when wet. and mansize tissues, is produced to that assures the consumer that 56

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July/August09On

the Vine

Grow Your Wine Sales with The Guru

Wine Market Update 2008

THE Guru is an innovative high tech device, developed by Fergal Downey, former marketing manager with Gilbey’s Wines, to assist the consumer to make an informed wine choice. The Guru is simply a 19-inch touch screen machine which can be either floor or wall mounted, which incorporates a scanner and printer, and is always free to answer customer queries relating to wine. Most off licences have well educated sales people who are trained to answer these queries, but it is not always possible to have them on site all the time: The Guru means you have a full time partner, in your shop at all times. “I’m having a dinner party, and we’re serving lamb/beef/chicken” would be a typical question from a customer: all they have to do is search for a wine using a key criteria button, such as either food match and price, style, country or grape variety. The Guru is tailor-made so that the wines you stock are featured on it, with detailed tasting notes and information about where the wine comes from, taste profiles about the grape variety and general information. This information can then either be printed in the shop, or sent by text to the customer’s mobile phone. But does it work? Well the results from the Booze2go chain in Dublin would indicate that it does. Since installing The Guru in its chain in late 2008, their wine sales have increased by an average of 36%. For more information, contact Fergal Downey on (086) 8125852 or email him on fergal@touchpoint.ie.

LATEST figures to December 2008 show that wine sales in Ireland for the year fell by 3.9%. This is the first record of a decrease since the records began in 1950. Latest figures to March 2009 indicate that wine sales decreased a further 10%. Wine consumption for 2008 accounted for 18.7% of retail sales of the alcoholic beverage market, which in 2008 was estimated at €6.9 billion, equal to 7.4% of total consumer spend, a decline from the 2007 figures. Total case sales for 2008 were 8m cases, down from a high of 8.2m in 2007. Annual per capita consumption of wine in Ireland is 17.1 litres, still one of the lowest in Europe. However, Irish excise duties on both still and sparkling wine are the highest in the EU, with a 75cl bottle of still wine being subjected to a duty rate of €2.46 per bottle and sparkling wine at a whopping €4.92 per bottle (plus VAT @ 21.5%).

Wine For 2 from Febvre FEBVRE & Co. have just introduced an innovative idea which should definitely catch on in these straitened times, a smaller sized 50cl bottle which is sold as a “Wine for 2”. It offers a more affordable wine and most importantly, this new range of wine and bottle size includes many of the classic wine styles which today’s wine consumers know and love. The bottles are clearly marked with the ‘Wine for 2’ logo, and fit into two styles: the Classic Range offers the 2008 Ta Moko Marlborough Sauvignon Blanc from New Zealand or the 2008 Cuvee Vielle Vignes Fleurie from Beaujolais in France, while the Everyday Range includes Sauvignon Blanc and Cabernet Sauvignon from Chile’s Shy Albatross, Chardonnay and Merlot from Le Loup (The Wolf) in France, Pinotage Rose and Shiraz from South Africa’s The Whistling Thorn and the Giuliana Pinot Grigio.

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July/August09Forecourt

Focus

XL Excels inWexford Since its redevelopment in January of this year, Sean Kinsella’s XL Stop & Shop forecourt in Wexford Town has been thriving.

Sean

Kinsella’s XL Stop & Shop in Rocklands, Wexford Town, is evidence that the right retailer, symbol group partner and product offering can succeed, despite the economic climate. The store also forms part of a strategy of significant expansion planned by the group over the coming months. Sean has only been running the shop since March of last year, but he has extensive knowledge of Ireland’s retail trade, where he has been working since the age of 21. The forecourt site had been well known around Wexford Town, but over the years it became known more as a car dealership: Sean, however, knew the site held great promise for a grocery store. “I knew how much potential there was in this site,” Sean tells RETAIL NEWS. “It has always been well known by locals and repeat tourists. The forecourt shop was very small when I took over and the first thing I did was redevelop the site.”

Significant Investment The redevelopment work involved a significant investment, doubling the size of the forecourt shop and adding two ancillary buildings to allow for a car wash, a valeting service and tyre repair. Initially trading as a fully independent store, which allowed him to gain valuable local knowledge about customers’ needs in the area, August 2008 saw Sean join up with XL Stop & Shop. Having spoken to a number of symbol groups, Sean found the XL Stop & Shop image very appealing and the fact that the group was planning significant expansion gave him great confidence in a partnership.

Pictured are John Byrne, XL Business Development Manager; Sean Kinsella, Store Owner; Jason Browne, Store Manager; and Niall Murphy, Manager, Value Centre, Wexford.

“Right from the start, I had a great working relationship with the group,” enthuses the store owner. “We had a huge number of site meetings in the shop, deciding how to introduce the XL image. We introduced top quality deli, coffee and food-to-go offerings, as well as integrating the XL image across the shop.” The reaction from Sean’s customers was extremely positive: “Sales were strong and the site very quickly built a great reputation in the area. Everyone responded positively to the new look: the large amount of glass at the front of the shop allows a lot of natural light in and the interior is bright, fresh and attractive. With the high standards in the forecourt sector, that was where I had to position the shop to make it a success.”

Increased Grocery Section As any good retailer should, Sean kept a close eye on his business and as he and his staff became even more familiar with their growing customer base, he realised that the strong growth seen in convenience sales could be matched by grocery if the store introduced a strong value selection. January of this year saw Sean and XL Stop & Shop combining their talents to redesign the shop and increase the grocery selection. According to John Byrne, XL Business Development Manager, “Sean is a very dedicated retailer, 58

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July/August09Forecourt

precisely the type that we as a group are looking to work with: he is totally committed and that is a commitment that we look to match. When he decided to increase the ambient grocery offering, we knew it was because he had seen a demand for it from his customers.” XL Stop & Shop are totally focused on meeting that demand. The group recently relaunched their Family Value brand, bringing it bang up-to-date in terms of packaging and shelf stand-out. “We have been able to create a value focus in the shop, through banded products, as well as Family Value offers, so that Sean can offer his customers a competitively priced basket of goods,” explains John Byrne. The store owner recognised that while he couldn’t compete directly on price with the large multiple supermarkets, if he could demonstrate good value to his growing customer base, there was a lot of potential for ambient grocery trade. “Once again XL Stop & Shop have been a fantastic support, providing excellent advice on category management, top selling lines and supporting my value ethic with a fantastic selection of value offers to pass on to my customers,” Sean states. The increase of the ambient grocery offering has proved a massive success, as sales are still growing strongly in the shop, even in the current economic climate. Sean has invested significantly to exploit every bit of potential of the site in Rocklands. The diverse range of services and products on offer complement one another to give the business an extremely solid foundation.

Staff Management Sean’s attention to detail continues to staff management,

Focus

organising monthly staff meetings, where staff are encouraged to air any issues they may have and supply feedback from customers on their experiences in the shop. There is a real team spirit in the shop and an extremely good relationship exists between staff and customers. That team spirit is also echoed in the close support that Sean receives from XL Stop & Shop and the sense of partnership that exists between retailer and symbol group. “We are delighted to work with a retailer like Sean,” notes John Byrne. “We have been working hard to drive the group forward over the past three years. We have developed our image, improved our back-up and we are actively looking to recruit retailers of the calibre of Sean. We are implementing a Store of the Year competition for the first time this year and we will use this as another tool to further improve the quality of our package.” Sean Kinsella has invested heavily to get his business off the ground over the last 15 months. In such a short timescale, he has created a reputation for value and quality and increased sales every month. He has achieved this by constantly FACT FILE monitoring his cusOwner: Sean Kinsella tomers’ needs and Location: Rocklands, Wexford Town, demands, with the support and Co Wexford Size: 2,000 square feet retail space advice of XL Number Stop & Shop of Staff: 15, full time & part time helping to meet Opening and exceed those hours: 24 Hours needs.

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July/August09Security

Securing Your Profits Now more than ever, retailers need to curb their overheads, and one of the most effective ways of lowering costs is to reduce incidences of in-store theft and shrinkage.

The

right in-store security system is a proven deterrent against theft: not only that, but it makes for a cost-effective solution, with retailers noticing the difference in their bottom line. CSO crime statistics for the final quarter of 2008 make for worrying reading. Robbery of an establishment or institution increased by 6.5% during 2008, while robbery of cash or goods in transit has jumped by a staggering 30%. Store theft increased by 6.5% and aggravated burglary has seen a rise of 28.2%. “It is widely accepted that, unfortunately, recessionary times drive crime upward and this would appear to be borne out by the figures published by the CSO,” noted Barry Brady, Executive Director of the Irish Security Industry Association recently in SecureView, the official publication of the ISIA. “The concerning fact is that we are not yet feeling the full effects of the recession and there is a real worry that 2009 will see these figures rise even further. Our association recognises that many businesses may be look-

ing at reducing their security provision in an effort to reduce costs, given the economic crisis we are facing. However, we would strongly advise them to reconsider. A reduction in security at this time could prove very costly in the long run.” Alan Jordan, President of the ISIA and Country Manager for Brinks Ireland, also warns against skimping on security: “In recessionary times, you find criminality increases on all fronts. A recent European Crime Survey indicates risk of theft in Ireland at double the European average. Security services are now probably more required than ever for businesses.” There is, however, a legal issue. If you are using the services of a security company, you must ensure that they are licensed by the Private Security Authority (PSA). If the security supplier is not licensed by the PSA or is not providing licensed officers or paying mandatory employment rates, the customer is also at risk of prosecution. Unfortunately, burglary, theft and robbery are very real threats, and are faced by every retailer throughout the country. Taking the right security measures, from hiring a full-time security guard to installing a CCTV system, can be the difference between being a target and remaining safe from shrinkage.

Minimising Opportunities The most effective way of reducing crime is to minimise any potential opportunities which a criminal might seek to exploit. The best way of doing this is to fully analyse the risk to your premises and implement the most appropriate security measures available. This may involve increasing security guards or mobile patrols, utilising CCTV and monitoring products or a combination of both. An intruder alarm is an essential element of any defence system. The alarm should conform to the relevant Irish and European standard. It should be connected to a recognised monitoring station and have a back-up system in place in the event of telephone lines being interfered with. An integral part of any alarm system is a panic attack button, which should be linked to a recognised monitoring station to alert the Gardaí.

CCTV Systems CCTV system installations are increasing throughout Ireland. CCTV systems have achieved a significant reduction in crime and anti-social behaviour by providing 24-hour surveillance of vulnerable areas, while video-content analysis technology increases a CCTV system’s effectiveness by automatically

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Londis

24/07/2009

12:00

Page 1

Rice and All Things Nice KERINS Foods distribute their ambient food and confectionery to both the retail and catering trade here in Ireland, offering the choice of branded and private label products to their customers. An important part of their mix is the La Perdiz (Partridge) rice brand from the Arcesa Group. Grown in the Albufera Natural Park area of Valencia,Arcesa is the rice used in the famous Spanish paella dish. The long-grain rice grown here has an elongated slender kernel that is noted for its very high quality and the consistency of the grain. More importantly when cooked, the grains remain separate and become OLJKW DQG Ă XII\ QRW VWLFN\ At its production facility in Oliva, south of Valencia, rigorous electronic colour sorting removes all kinds of impurities prior to full sterilisation and ensures that Arcesa rice is of the highest quality, and has achieved IFS ISO9000 and BRC Grade 1 accreditation.

Hall Alarms Ltd, established over 25 years and based in Clonmel is a leading supplier of integrated security solutions to the Retail Marketplace including: Intruder Alarms, CCTV, Access Contol, Fixed and mobile panic alarms and monitoring of alarms. Hall Alarm provide CCTV systems to reduce shrinkage instore by â&#x20AC;&#x153;Point of Saleâ&#x20AC;? monitoring and assist in store layout and product placing by observing customer trafďŹ c. CCTV monitoring can be provided to verify Intruders and give peace of mind for opening and closing of premises.

Initially, a 1kg retail bag is being introduced into the market, which is available nationwide in Musgrave Cash and Carries at a competitive price of â&#x201A;Ź21.25 for a pack of 10. Shops can also buy direct from Kerins Foods in Wicklow and recent stockists for the rice include McCambridges in Galway and Tomasâ&#x20AC;&#x2122; in Foxrock.

Hall Alarms has now launched â&#x20AC;&#x153;PALâ&#x20AC;?, a mobile personal alarm locator, connected to a central monitoring station with built in tracking.

For further details, contact Theresa Kerins at 012819474. KERINS FOODS, UNIT E7, NETWORK ENTERPRISE PARK, KILCOOLE, CO.WICKLOW

Hall Alarms Ltd, â&#x20AC;&#x153;Delay, Deter and Detect Crime in a Retail Environmentâ&#x20AC;?

Arcesa Grade A 1kg bag long grain retail rice available in Musgraves Cash and Carries nationwide

HALL ALARMS LTD, Unit 5 D2 GurtnaďŹ&#x201A;eur Business Park, Clonmel, Co. Tipperary. Ph: 052 612 1944 Fax: 052 612 5588 Email: info@hallalarms.com Web: www.hallalarms.com

Londis Launches Mobile Shopping List Service

LONDIS has recently launched a unique Mobile Shopping List Service for customers. The service can be accessed through the home page of the newly designed Londis website, www.londis.ie The innovative service delivers a subscribers shopping list direct to their mobile phone at a time and date that is convenient for them. Customers can simply create their shopping list online and set the date and time they would like to be reminded, helping to ensure they know exactly what items they need whilst in-store. Consider the busy working parent who can now create their shopping list on-line: they can add to it as they remember items throughout the week and have it texted to them at 9.00am on Saturday morning, just before they head to Londis for their weekly shop! They can even re-edit the same list, week after week. /RQGLV FRQVXPHUV ZLOO QHYHU DJDLQ ÂżQG WKHPVHOYHV DW KRPH ZLWK WKHLU VKRSSLQJ EXW PLVVLQJ what they originally set out for!

July/August09Security

excellent deterrent to potential burglary. They can also reduce the likelihood of a ram raid if used in conjunction with anti-ram bollards, which are securely anchored in concrete. A plastic anti-shatter film should be applied to glass windows to reinforce them against smash and grab raids.

ATM Security

identifying threat events or abnormal behaviour in real time. The hardware and software to enable this functionality plugs into any existing CCTV camera system. Once the system is set, it will continuously monitor an area and, when an incident is detected, it will automatically alert the operator via an alarm signal through the CCTV system. Installing a modern CCTV system is no longer cost prohibitive. To enhance any CCTV system, external areas should be adequately lit to provide good surveillance during hours of darkness. A specific security door should be provided and monitored by CCTV for staff opening and closing.

Counter Safe You should install a counter safe: this can either be a drop safe beside the till or a purpose-built till safe. Cash can regularly be taken from the till and placed in the safe, so that neither the till operator or potential robber can access the money. A time lock should be placed on all safes to ensure they can only be opened at certain times.

Preventing Burglary The following guidelines will help to prevent burglary in your store. Strengthen potential entrances: use high quality hardwood door frames and doors, steel reinforcing and anti-thrust bolts on vulnerable doors, and bars or grilles on vulnerable windows. Doors should be fitted with security mortice locks. Grilles and shutters can be an

Installing an ATM in-store is good for business but, as some recent high profile robberies prove, it also changes the security risk in-store, as it highlights the fact that cash is being held on the premises and increases the likelihood of large sums. The onus is on the retailer to ensure that the ATM is operational for up to 96% of trading hours and not to fill the ATM when the store is open for business. However, these two issues may come into conflict if the ATM runs out of money during business hours. The retailer must ensure that all staff have clear, written instructions both for refilling the ATM with cash and for security, particularly around vulnerable times. Always fill the ATM when the shop is closed and the perimeter alarm detectors are activated. The intruder alarm system can be set-up to enable the shop owner/manager to activate all detectors on the doors and windows, while allowing them to move freely within the store. All doors and shutters must be secure. Retailers should have a second set of spare cassettes. These three spare cassettes should be filled in a secure cash office and brought to the ATM for speedy loading. The least amount of time the shop safe and the ATMâ&#x20AC;&#x2122;s safe are open, the less vulnerable you are. All phone lines should be checked before filling the ATM machine, and two members of staff should be present for the filling of the ATM. The public should not be in a position to see the internal store area during ATM filling and no callers should be admitted prior to or during filling. The ATM should be positioned against a solid wall. It is preferable to have a rear loading, so the safe can be filled from a room to the rear of the ATM, out of sight from the public. The ATM should also be located as far

from the entrance/exit door as possible and never near a fire exit.

Staff Training All retail staff should be trained in all security systems. The time lock on the main safe should be set to open at a suitable time before the shop opens and to lock before closing. Staff must not leave the shop before the time lock has operated at closing times. When a staff member opens the store in the morning or closes at night, they should have a code word to contact either the store manager, head office or a monitoring centre, to signal that they are safe. Once this staff member is secure in the cash office, they should then monitor the CCTV system as other staff members enter the premises. This will necessitate that a second staff member has keys to open the store after the first member of staff has entered. Similar procedures should be put in place when closing the store.

Good Cash Handling Practice s +EEP AS LITTLE CASH IN THE TILL AS possible. You should regularly transfer cash to a drop safe, till safe or cash office and you should post notices to this effect in the store. s !NTI GRAB TILL SCREENS SHOULD BE installed around the till drawer, making it difficult for anybody other than the till operator to reach the drawer when it is open. s !LL CASH SHOULD BE COUNTED IN a secure area and there should always be more than one member of staff present when cash is being moved. s %NSURE YOU HAVE BANKING ROUtines that deter anyone from attempting to steal it in transit. s 4HOSE CARRYING CASH SHOULD never be alone. s 6ARY THE ROUTE AND TIME CASH IS transferred to a bank. s "E VIGILANT AT THE NIGHT SAFE watch for people loitering, including in parked cars. s )F THE LOCK IS BLOCKED OR OUT OF order, contact the GardaĂ immediately.

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July/August09What’s

New Look Irish Mist THE new look Irish Mist, Ireland’s original whiskey liqueur, was showcased to over 31,000 guests at this year’s Taste of Dublin premier food and drink event. Irish Mist has been given a completely new look with a modern whiskey bottle shape that better reflects the taste of the world-famous drink. Visitors to this year’s Taste of Dublin were invited to enjoy the rich flavour of the world-famous liqueur straight over ice or with the universally loved combination of cola with a slice of fresh lime.

New Zywiec Four-Pack HEINEKEN Ireland has recently strengthened the Zywiec brand with the launch of a new sleek four-pack into the off trade sector. The new four-pack, which retails at €7.99, will now accompany the original 500ml bottle offering. The introduction of the new can offering is in response to consumers who appreciate convenience and value. Zywiec is available from independent off licenses, supermarkets and multiples nationwide.

New

Bulmers International Comedy Festival PICTURED at this year’s Bulmers International Comedy Festival launch was the hilarious Kevin McAleer with Bulmers Brand Manager, Marcus Goodwin, and ‘nurses’ Aoife Coogan and Roberta Rowatt. The Bulmers International Comedy Festival returns to Dublin from September 6-27, bigger, better and funnier than ever! This year’s festival includes comedy sensation of 2009 Michael McIntyre’s debut Irish performance, as well as Fascinating Aida, Rich Hall and Otis Lee Crenshaw; the hugely popular Jimmy Carr; rising comedy star Stephen Lynch; and red hot American acts Janeane Garofalo and Al Madrigal. For further information on venues and acts, see www.Bulmerscomedy.ie

Kelkin Oat Granolas KELKIN’S new Oat Granola range was especially designed for granola lovers. The range consists of three mouth-watering variants; Kelkin Triple Berry, Tropical and Fruit & Nut. Kelkin Granolas are made in Ireland, using only the finest quality ingredients, which have been carefully selected from around the world. Each cereal is high in fibre, full of antioxidants, contains no added salt and is packed in convenient, re-sealable 500g pouches, offering consumers quality and value for money.

Febvre to Distribute CVNE Wines FEBVRE & Company Limited has been appointed distributor for Spanish wineries CVNE, Viña Real and Contino in the Irish Republic with immediate effect. CVNE is one of Spain’s oldest and most prestigious bodegas, founded in 1879 by two brothers Eusebio and Raimundo Real de Asúa, and now run by the fifth generation of the founding family. It is also one of the largest estates in the Rioja region, spanning 1200 acres of vines and producing 9m bottles of wine each year, including Cune and Imperial. CVNE’s Rioja Alavesa estate, Viña Real, has has established itself at the forefront of Rioja wines, while in developing the Contino brand, the company pioneered the recovery of long-forgotten and almost extinct Rioja grape varieties like Graciano.

Diageo Ireland and Grand Marnier Join Forces DIAGEO and Grand Marnier have joined forces to reach an exclusive agreement for Diageo to distribute, sell and market Grand Marnier liqueurs. Since July 1, Diageo began distribution in 26 markets, including the Republic of Ireland, Germany and Spain. France, along with a further four markets, will transfer to Diageo in 2009. Grand Marnier is a premium cognac and orangebased liqueur with a rich history and heritage, produced in France since 1880 and available globally in 150 countries around the world.

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July/August09Shelf

Life

Shelf Life THE brilliant Après Match team presented an exclusive screening of hilarious tributes for this year’s Carlsberg Comedy Carnival from some of Ireland’s most revered “celebrities” and “public figures” to celebrate the launch and the official unveiling of this year’s line-up, which included Des Bishop, Ardal O’Hanlon and David O’Doherty. The Carlsberg Comedy Carnival took place from July 23-26 in the stunning setting of the Iveagh Gardens, and played host to over 65 International and Irish acts, playing 44 shows, over four venues in four days to make up a unique carnival weekend.

MILLWARD Brown has announced a realignment of its research businesses in Ireland. Since July 6, Millward Brown IMS and Lansdowne Market Research have combined their strengths and merged into a single company. The newly merged business will be named Millward Brown Lansdowne and will be part of Millward Brown Ireland, along with Millward Brown Ulster. The newly merged Millward Brown Lansdowne will operate from Millbank House, Sandyford, Dublin, home to both Millward Brown IMS and Lansdowne Market Research since May 2007. Pictured at the announcement are Eamonn Williams, CEO of Millward Brown Ireland, and Richard Waring, Managing Director.

NATIONAL Organic Week (NOW) will take place from September 14-20 2009. Funded by the Department of Agriculture, Fisheries and Food and co-ordinated by Bord Bia, NOW aims to continue to raise consumer awareness of organic food, how to recognise it when shopping and where to buy it. Look out for the many events taking place all over Ireland to celebrate NOW: from farm walks to food tasting, it promises to be a fun-filled, tasty week! For more information on events taking place, please log on to www.bordbia.ie

A RANGE of Unicef toys and gifts are to go on sale at Topaz-owned sites across the country, with all proceeds raised going to Unicef. The first product to go on sale are colourful canvas passport covers priced at just €5.95. The money raised will go to Unicef projects, which make a real and lasting difference to the lives of the world’s most vulnerable children. Racing away on their holidays at the launch of the initiative are Willow Byrne (8), Zèev Neiland (9) and his sister Aryana Neiland (6) all from Dublin.

AUGUST 26 marks the festival of Chinese Valentine’s Day and Wanchai Ferry are encouraging Irish consumers to celebrate this special occasion by preparing a dish from their Wanchai Ferry recipe kit range. The Wanchai Ferry range, so called because of its Hong Kong roots, has three delicious, authentic recipes to choose from: Xiang Gu (pronounced Shang Goo) Chicken with Shiitake Mushrooms, Kung Pao Chicken with Peanuts and Bo Luo Pork with Pineapple Pieces, ranging from a mild spice level to a moderate spice level. All three Wanchai Ferry recipe kits have an RRP of €4.69.

JOHNSON & Johnson have launched a nationwide search to find the new face of Calpol, a face that will appear on millions of Calpol boxes over the next number of years. Just one lucky child aged between two months and four years of age will be chosen to feature on the iconic packaging. Parents or guardians wishing to enter their child into the search can pick up forms in participating pharmacies, which can be posted with images to PO Box 11597, Dublin 24, or by logging on to www.newfaceofcalpol.ie. Pictured at the launch of the nationwide search are Eoin Wiseman, aged six months, and his sister Kate Wiseman, aged two, from Dundrum, Co. Dublin.

TAMPAX have launched new Tampax Pearl, the tampon that offers busy young women extra confidence to continue to enjoy their weekends their way. Tampax Pearl has been designed with a unique Pearl Protect System created to outsmart Mother Nature, with three new exclusive product innovations: a new smoother, pearlescent applicator with anti-slip grip allows easier and more comfortable placement; the perfect body fit tampon which gently unfolds to fit a consumer’s shape even better and an absorbent braid that gives ‘just in case’ extra protection when consumers need it most. 64

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Since launching in 1998 and now with over 300 stores open, the Gala Group is maintaining its number 1 position as Irelandâ&#x20AC;&#x2122;s fastest growing retail symbol group. Operating under three brands, Gala, Gala Superstore and GalaXpress, the Gala retail team have a unique knowledge of the needs and ambitions of retailers and place a strong emphasis on retailer profitability. So, if you want to connect with Irelandâ&#x20AC;&#x2122;s most dynamic retail group, make sure you call Gala first, on Callsave

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