Retail News Jan/Feb 2007

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Jan/Feb 2007



RN Jan/Feb07Contents ●

TARA

■ inside view

A New Look for New Year Welcome to the newly revamped RETAIL NEWS, hot off the printing presses for what we hope will be another busy year for Ireland’s grocery trade. We may have updated our image, but the good news for readers is that the quality of our content remains as high as ever, with the same mix of in-depth news stories, informative sectoral reports and exclusive interviews that has made RETAIL NEWS required reading for the last half-century. In this issue, Chief News Reporter Pavel Barter investigates the escalating row over food labelling which threatens to spill over into the European Courts (Page 4). We also hear how one Irish senator has branded the new Consumer Protection Bill as toothless (Page 5), while the growing problem of illegal cigarette sales in Ireland is threatening to effect the market in the same way as it does in the UK, where it is estimated that up to 25% of cigarette sales are illegal (Page 7).

For further information on any of our publications, please contact our sales team on:

Elsewhere, Karen Meenan argues that the time is right for you to reexamine your News Rack (Page 16): your magazine stand, in particular, is one of your customers’ favourite sectors of your store, and yet many retailers relegate it to the status of an afterthought when compared to areas like the deli or the off-licence. It’s time to take your News Rack seriously. We also provide a timely reminder to stock up on Healthy Options (Page 22), during a period when a huge proportion of Irish consumers are trying to make food and drink choices that are good for them and their bodies, as well as assessing the success of SPAR’s new food strategy, one year after its launch (Page 30). Finally, respected motoring journalist Padraic Deane delivers the 10th annual RETAIL NEWS Commercial Transport Report (Page 38), highlighting the latest developments in vans, light commercial vehicles and car-derived vans that are scoring points with motoring judges and drivers all across Europe.

“Serving the Irish grocery trade for Kathleen Belton, Editorial & Marketing Director.

nearly 50 years.”

Subscription to Retail News: €95 plus VAT 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

Financial Correspondent: Carmel Linnane

Advertising Manager: Aaron Stewart

Advertising Executive: Rory O’Connor

T A R A Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2. Tel: (01) 2413095. Fax: (01) 2413010. ISDN: 01 2413050 Web: www.retailnews.ie Email: retailnews@tarapublishingco.com Origination by: Rooney Media Graphics

Printed by: Future Print

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RN Jan/Feb07Contents ●

Contents 4News

30SPAR Food Strategy

Row Over Food Labelling Escalates

5 Senator Brands Consumer Protection Bill Toothless

38Commercial Transport

6 PIN Codes Mandatory from St Patrick’s Day

7 Illegal Cigarette Sales Threaten Tobacco Market

16 10 Retail Trends for 2007

8 New Board Appointments at BWG; Avian Flu Outbreak in UK

9 Bread Prices Continue to

14Shop Profile Mace’s stunning new image is taking Carlanstown, Co. Meath, by storm.

Rise

16News Rack

5

38

A year after SPAR launched their new food strategy, RETAIL NEWS assesses the results.

Your customers value your News Rack, but do you, asks Karen Meenan.

In our 10th Annual Commercial Transport special report, motoring journalist Padraic Deane highlights the vans, LCVs and CDVs to really get the retail trade moving this year.

52Money Matters Carmel Linnane advises on the factors to consider when buying an existing business.

54On The Vine Jean Smullen looks at the big winners at the recent NOffLA Awards, and examines the continued growth of New Zealand wines in the Irish market.

60Shelf Life All the latest news and gossip from the trade.

19EUROSPAR EuroSPAR’s flagship 7,000 square feet store has opened on Dublin’s Barrow Street.

2175 Years of Mangan’s Mangan’s Wholesale are celebrating their 75th Anniversary this year, with a host of events planned to commemorate the event. 2

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Regulars 12 Industry News 20 Drinks News 58 What’s New Sectoral Reports 22 Healthy Options 32 Easter 36 Pasta & Pasta Sauce 48 Cheese



RN Jan/Feb07News ●

Row Over Food Labelling Escalates A BATTLE for product label formats, waged amongst manufacturers and politicians in the UK, has travelled the Irish Sea to grip our own grocery trade. In one corner is the traffic light system, as proposed by the UK Food Standards Agency (FSA) and supported by heavy-hitting retailers such as Sainsburys, Marks & Spencers and Asda. Under this scheme, food and drink that is high in calories, salt, sugar and fat, is stamped with a red light; a green light promotes “healthy food”, while orange expresses “caution”. The methodology is simple, eye-catching, and requires little brainwork for busy shoppers. In the other corner is the Guideline Daily Amount (GDA) system. GDA labels reveal the percentage of sugar, salt, fat and calories in each recommended serving, allowing consumers to make an “informed choice”. In the UK, 24 companies (including Kellogg’s, CocaCola and Cadburys) ploughed €6m into a GDA TV campaign, while retailers such as Tesco fly the flag for this form of labelling. “The traffic light system is overly simplistic and can cause confusion,” FDII’s Paul Kelly told RETAIL NEWS. “Cheese, for example, is naturally high in fat and can be eaten as part of a healthy diet. But even though you don’t eat an entire block of cheese, it would still have a red light. Some people might say that the traffic light system is handy but nutritional information is not that simple. In reality, if you want to make a decision, you need the correct amount of information.” Bernard Murphy, Chief Executive of the Beverage Council of Ireland (BCI) was also firmly in favour of GDA: “The traffic-light system is at best a blunt and simplistic system and at worst can easily send out the wrong signals and mislead. Any single foodstuff could actually have all three colours on the label and thus sends confusing messages.” At present, Irish product labelling is far from clear-cut and shoppers often have to make mathematical equations to figure out how much salt is contained within a product. In the opinion of opposition politicians, such as Fine Gael 4

Agriculture Spokesperson, Denis Naughten TD, traffic lights are the best way forward. “Currently, Irish labelling laws leave a lot to be desired and the refusal by the current FF/PD Government to reform the system is condemning Irish consumers to shopping blindfolded,” Naughten told RETAIL NEWS. “At the moment, up to 11 different types of information are displayed on processed food products so it’s easy to understand how food shopping can become a confusing business. “On top of this, recent media reports have highlighted mislabelling of food, including high-sugar foods being labelled as ‘healthy’. We believe that most Irish shoppers are naturally inclined towards healthy, high-quality food but are being denied that choice. That’s why we are proposing the traffic light labelling system, which is the most consumerfriendly and comprehensible to food shoppers.” But some companies consider themselves “demonised” by traffic light labelling. For example, cereal products (worth over €1.8 billion in Ireland and the UK) could be classified as junk food under the scheme. Bev Postma, Corporate Communications Director at Kellogg’s Ireland, explains: “The traffic light scheme is based on a 100g serving size. This defeats the object of having a simple solution on-pack, since cereals are never consumed in 100g portions. Accurate portion sizes are between 30g and 45g. If 100g is red or amber, then what is a normal serving? The system immediately leaves cereals appearing much less healthy than they actually are.” Fine Gael’s Denis Naughten told RETAIL NEWS that the lack of regulation leaves labelling information unverified. “The traffic light system is already in Ireland, but there is no legal basis for the system in this country, so there is nothing stopping someone putting a green label on a product that contains five grams of fat.” Paul Kelly responded by saying that products with the traffic

light system are, in fact, scarce in Irish supermarkets. “GDA is no knee-jerk reaction,” added Bev Postma. “Nutrition labelling has been evolving for years and Kellogg’s was the first food manufacturer to print nutrition labelling on-pack. GDA has been founded in government principle. It’s no new concept, or one that has been invented for a sales reason.” In the UK, the jury is still out on the best system to adapt, although the Food and Safety Authority (UK) hopes to have reached a decision by the end of 2008. Most parties believe that food labelling should not be self-regulated and the European Commission is likely to revisit the issue this year. Once again, innovation has left regulation in its wake. Problem is, which form of innovation should we choose? Bev Postma concluded: “I sympathise with any authority trying to legislate for nutrition because we clearly need a simple solution, but nutrition is not simple. There is a danger to settle for a one-size fits all solution.”


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Senator Brands Consumer Protection Bill Toothless A Fine Gael Senator has trashed Micheál Martin’s new Consumer Protection Bill, calling it a “tiger with no teeth”. In an interview with RETAIL NEWS, Senator Paul Bradford dismissed Minister Martin’s “pet project” and called for a “proper” consumer rights enforcer with real statutory powers. “We want to ensure that the consumer is protected and everyone is getting value for money, whether it is the consumer purchasing from the retailer, or the retailer purchasing from the wholesaler,” he said. “We believe we need a stronger agency than the one which the Government is proposing. I would like to see a consumer enforcer who could take greater actions to ensure the rights of the consumer. At a time when the Irish cost base is beginning to cause genuine problems on the jobs front, we have to try and ensure value for money at all levels.” Minister for Enterprise, Trade & Employment, Micheál Martin TD, has claimed that the Consumer Protection (National Consumer Agency) Bill signifies

“the biggest reform of the area in 30 years and will help ensure that Ireland will have one of the strongest and most modern consumer protections in the world”. The Bill includes bans and sanctions for 31 anti-consumer activities, including pyramid selling, prize draw scams and persistent cold calling of consumers. Under the legislation, traders who mislead consumers, or act “in an aggressive way” towards consumers, risk fines of up to 60,000 or imprisonment for up to 18 months for a first offence. The Agency will also be empowered to issue compliance notices and impose on-the-spot fines on errant traders, and will routinely publish details of traders who have faced enforcement action. Is Paul Bradford suggesting that this is not tough enough? “What is happening now is only because of the pressure Fine Gael has been putting on the government over the past 12 to 18 months,” he insisted. “This started with our rip-off Ireland campaign and

Senator Paul Bradford.

continued as we raised the matter at all political levels. We feel that [the Bill] could go further, incorporating some sort of an enforcer who will have a clout that the consumer requires.”

Business as Usual for Chivers IT is “business as usual” between retailers and Chivers Ireland, Liam O’Rourke, Managing Director of Premier Foods Ireland has told RETAIL NEWS. Premier Foods recently announced the acquisition of Chivers, an indigenous company formed in 1932, combining Chivers Ireland (which currently distributes Premier Foods products in the Republic of Ireland) with the existing Premier Foods Ireland operation (formed August 2006 following Premier’s acquisition of Campbell’s Soups Ireland). “We were an obvious target for Premier and were very happy to do business with them,” said O’Rourke. The merged company will have a turnover in Ireland of around €70m, sporting core brands such as Erin, Oxo, McDonnells’s, Chivers, Ambrosia, Birds, Loyd Grossman and Goodall’s. Chivers was originally part of

Liam O’Rourke, Managing Director of Premier Foods Ireland

Holdings, the original owners of Premier Foods, and the current Chivers business was formed as a result of a management buy-out from Premier in 1999. In 2002, Chivers acquired Goodalls from Unilever. “The Chivers brand continues to exist,” continued O’Rourke, “but we are changing the name of the company to Premier Foods Ireland, encompassing Chivers, Goodalls and Campbells. My role changes in that now become the Managing Director of Premier Foods Ireland, with responsibility for all of Premier’s operations here in Ireland.” While anticipating more complexity due to the increased size of the business, Liam O’Rourke is relishing the task ahead and is currently considering how best to integrate the two businesses, reviewing “the best way forward for the business”. 5


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PIN Codes Mandatory from St Patric RETAILERS should ready themselves for March 17, 2007, when customers are obliged to use PIN codes for Chip and PIN cards, instead of signing for purchases. “From this date forwards, if a retailer decides to let the consumer sign instead and that transaction turns out to be fraudulent, the retailer could be liable,” Jennifer Chamberlaine, a spokesperson for the Irish Payment Services Organisation (IPSO) told RETAIL NEWS. While most of the publicity campaign surrounding the March 17 date has been focused on consumers, urging people to memorise their PIN numbers, retailers must also be aware of their obligations, the least of which include ensuring that their Chip and PIN terminals work. There will also be a number of exceptions to the rule. These include cardholders both home and from abroad whose cards have not yet been upgraded to Chip and PIN. These, and other exceptions such as

disabled cardholders, will be able to continue signing. “96% of cards are Chip and PIN, so these exceptions are not common. But consumers using cards from outside Europe, and the small amount of cards issued that are non-

Chip and PIN will remain acceptable and people will continue to sign. My advice for retailers is to follow the prompts on the terminal and the terminal will do all the work,” Jennifer Chamberlaine noted. But with such exceptions to the rule, could retailers

Chip and PIN Roll-Out Nears Complet OVER 50,000 merchants, 1.5 million debit (Laser) cards and 2.5 million credit cards later and the implementation of Chip and PIN is close to completion. While the majority of cardholders already know and use their PIN for most of their Chip and PIN card transactions, the security benefits of Chip and PIN technology will only come fully into effect when the option for customers to bypass the PIN and to sign instead has been removed. The removal of the PIN bypass option will take place from PIN Day, March 17, 2007. The change will mean greater protection from fraud for retailers who have already upgraded to Chip and PIN technology. It also means more security for the customer should their Chip and PIN payment card fall into the wrong hands. Retailers with Chip and PIN systems should expect card companies to automatically decline transactions where a PIN is not used with a Chip and PIN card, after March 17. To learn more, below you will find answers to six of the most frequently asked questions about Chip and PIN:

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• Do I need to request the PIN for Card Not Present (CNP) transactions e.g. phone/mail order, internet? No. Chip and PIN applies only to ‘face-toface’ (Point of Sale) transactions, where there is a PIN pad present. You should never ask the customer to tell you their PIN over the phone or for mail order or internet transactions. (To find out more about the security options available for CNP transactions, please contact your acquiring bank or processor) • Do I need to request a PIN for all Point of Sale transactions? Whilst the majority of Point of Sale card payments that you process will be verified with a PIN, there are exceptions to this rule. These include customers whose cards have not yet been upgraded to Chip and PIN, tourists from countries where Chip and PIN technology has not yet been adopted and a small number of customers who own special Chip and Signature cards as they have a disability which prevents them from using PIN. To avoid confusion, retail staff should simply insert the customer’s payment card into the terminal and follow the ter-

minal prompts – which will automatically advise whether a PIN or signature is appropriate, dependant on the card type. (Obviously, the few retailers that have not yet upgraded to Chip and PIN will continue to require a signature as the cardholder verification method) • What if a customer says he/she doesn’t know his/her PIN after March 17, 2007? If the Point of Sale terminal prompts you to request a PIN but the customer has forgotten or doesn’t know their PIN, in the interests of reducing the risk of fraud, you should ask the customer to use an alternative method of payment. You might also consider reminding the customer that a PIN will be required in future if they wish to transact using their Chip and PIN card. If you decide in this instance to bypass the PIN and permit the customer to sign instead, you should expect the card company to decline the transaction. • What are Chip and Signature cards? Most cardholders who have a disability find Chip and PIN cards easy to use, but not all. Banks therefore provide Chip


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k’s Day who permit foreign cardholders to sign be putting their own necks on the line? What if the card was stolen? Is the retailer still liable? “In these cases, the retailer just needs to take all the regular precautions,” said Jennifer Chamberlaine. “Is it a man presenting a female’s card, etc? Make sure the signature backs the signature on the back of the card.” Overall, the introduction of mandatory PIN numbers is likely to make a retailer’s life less troublesome. “Transactions become more secure for the retailer, because most cardholders will know that they have to use their PIN in order for their purchase to be completed. If they don’t know their PIN, they will have to use another form of payment.” For more information, visit: www.chipandpin.ie

ion and Signature cards to customers with special needs. If a customer presents a Chip and Signature card after March 17, 2007, you should dip the card as normal and the terminal will prompt you to request a signature from the cardholder, rather than a PIN. • What if the card given by the customer is locked? Always dip the card and follow the terminal prompts. If a customer presents a card where the PIN is locked, you will need to ask the customer for an alternative method of payment. You might also consider advising them to contact their card issuer who will be able to tell them how to unlock the card, to enable further use of the card. For further information please visit www.ChipandPIN.ie. If you have specific queries with regard to your terminal equipment, please contact your acquiring bank or processor directly.

Illegal Cigarette Sales Threaten Tobacco Market CRIME is a significant competitor to legitimate cigarette sales in Ireland and the situation threatens to worsen in 2007. “The illicit cigarette channel seriously affects our business,” Ronan Barry, Corporate Affairs Manager for P J Carroll, told RETAIL NEWS. “A legitimate business operating within the law and selling cigarettes for €7.05 cannot compete with criminals going door-to-door and selling packets for €3.60. We are relying on law abiding citizens, but the more those citizens feel as though they are getting shafted on excise increases, the more they will feel justified in buying illegal cigarettes.” Irish tobacco companies such as PJ Carroll conduct pack collections, studying cigarette packaging in order to decipher those that are duty paid and those that are not. The companies also collate market research and compare this to their own sales. Based on these two methodologies, it would appear that the non-duty paid market now reaches about 15% of the total. Not all this is illicit – bringing back cigarettes from abroad is legal, as long as the holidaymaker does not sell the product or return with more than their quota. Nevertheless, a substantial portion of the 15% consists of black market trade. “There are two types of illicit products,” continued Ronan Barry. “Smuggled product, that comes in from countries where cigarettes are cheap, and counterfeit product. You might find a pack of Lucky Strike that was made in a factory in China. Some are very advanced and even mimic the tax stamp. “The illicit channel has developed its own supply chain through shops – not mainstream retail shops but ethnic shops or small local shops - for €3.60. They are kept under the counter and sold to certain customers. “There is ‘ant smuggling’ – people coming back on regular flights and stuffing as many cigarettes as possible into their bag, then selling them on. Then there is the contraband that appears in fringe retail establishments, on Dublin’s Henry Street or Moore Street, or is sold door to door. Organised criminal gangs are behind that.”

In mid-January 2007, Revenue officials seized illegal cigarettes valued at €2m in Co. Louth as part of an ongoing operation into smuggling. In the past, Ireland’s illicit trade problem was muted because the UK was considered a bigger market where regular cigarettes were more expensive. Ireland was primarily a smuggling conduit for the UK. However, all that has changed now. The retail price of cigarettes in Ireland is similar to the retail price in the UK and this hardly bodes well for the future. “In the UK, the size of illegally traded cigarettes is estimated at between 25% and 35% of the total. We have a real fear that is what we are moving towards,” said Ronan Barry. “This problem is far worse now than in years past and we suspect that it will get worse,” he concluded. “If excise continues to increase and other restrictions continue – for example, a display ban will make it harder for investigators to distinguish between legal and illegal - then all the dynamics are there to ensure the growth of illegal cigarette sales.” 7


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Tobacco Companies Discontinue Legal Challenge to Legislation THE Office of Tobacco Control (OTC) has welcomed the discontinuation of the country’s leading tobacco companies’ legal challenge against the Public Health (Tobacco) Acts, 2002 and 2004. The legal action had been initiated by PJ Carroll and Company Ltd, John Player and Sons Ltd, Gallaher (Dublin) Ltd and Others, in 2004, but the case was struck out in the High Court at the plaintiff’s request. Speaking after the surprise development, the OTC’s Chairman, Dr Michael Boland, said that the way was now clear for the full implementation of all sections of the tobacco legislation: “The striking out of this case, which will allow for the full implementation of the legislation, represents the most significant

development, since the introduction of smoke-free workplaces, in creating a tobaccofree society here in Ireland.” Looking forward, Éamonn Rossi, OTC Chief Executive, highlighted the critical importance of early commencement of the sections dealing with point-of-sale advertising – behind counter displays of tobacco products and signage – in retail outlets. “Our research showed that children are very conscious of ‘point-of-sale’ advertising – much more so than adults,” he said. “Given the role of such advertising in getting children to see tobacco as a normal everyday product, we look forward to the Minister for Health and Children proceeding with the commencement of the sections of the legislation ending point-of sale advertising.”

New Board Appointments at BWG BWG Group have announced the appointments of Stewart Kenny and John Mahony as Non-Executive Directors. The other members of the BWG Group Board include: Peter Murray, Non-Executive Chairman; Leo Crawford, Group Chief Executive; John Clohisey, Group Property Director; and John O’Donnell, Group Finance Director. Stewart Kenny was a cofounder of Paddy Power in 1988 and was CEO until 2003. He remains a non-executive director of Paddy Power, and is on the board of the

Simon Community and the Immigrant Council of Ireland. John Mahony is a founding partner of ReputationInc, an international reputation management consultancy with offices in Dublin, London and Dubai. He has extensive experience of the retail and FMCG sectors, having advised such well known brands as Unilever, Diageo, GE, ASDA, Philips, Travelodge and Hamleys. John has worked closely with BWG for the past six years providing ongoing consultancy advice.

Pictured are BWG Directors (l-r): John Mahony, NonExecutive Director, Peter Murray, Non-Executive Chairman, and Stewart Kenny, Non-Executive Director.

Avian Flu Outbreak in UK THE Food Safety Authority of Ireland (FSAI) stated that there is no reason for public health concern associated with the consumption of cooked poultry and the recent outbreak of highly pathogenic avian influenza in the UK. There have been no reported human cases of avian influenza in the world that have been linked to the consumption of properly cooked poultry or poultry products. The FSAI reassured consumers that chicken and other poultry are safe to eat, but to be mindful of good hygienic handling practices and cooking products thoroughly prior to consumption. Normal cooking temperatures of over 70°C will kill the virus if present, and therefore 8

consumption of properly cooked poultry meat carries no risk of infection with the H5N1 virus – the avian influenza virus. Poultry should be cooked to reach at least 70°C in all parts of the product, ensuring that it is piping hot all the way through, with no pink meat left and until the juices run clear. Normal hygienic practices regarding handling of raw poultry meat should be observed. In effect, hands, utensils and surfaces should be thoroughly cleaned following contact with raw poultry products; and there should be adequate separation of raw food from cooked or ready-toeat foods. Ireland is currently free from avian influenza and

there are systems in place to prevent the importation of products from countries and regions where cases have occurred. The current strain of H5N1 remains primarily a disease of birds. The FSAI is in close contact with the Department of Agriculture and Food and will continue to monitor the situation. The Management Committee of the Department of Agriculture and Food’s National Disease Control Centre have been meeting regularly to review the most upto-date information available from the Department of the Environment, Food and Rural Affairs (DEFRA) in London in relation to the outbreak of highly pathogenic avian 'flu on a turkey farm in Suffolk.

The Department is taking immediate steps to reissue advice and information to poultry flock-owners and the public in relation to the necessity to maintain high levels of on-farm biosecurity and the reporting of wild bird mortalities to the Department's avian 'flu helpline number - 1890 252 283. In addition, ongoing contacts are being maintained with the farming community and the Irish poultry industry. Meanwhile, UK retailers have launched information campaigns underlining the official advice from the Department for Environment, Food and Rural Affairs that no infected birds had entered the food chain, with Sainsbury issuing leaflets across its 750 UK stores.


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Bread Prices Continue to Rise BREAD prices have risen a further 10% after a 4-cent hike in early January, but it is a step too far for the Irish Farmers Association (IFA). The Irish Bread Bakers Association (IBBA) and flourmanufacturing company Odlums, insist that the move is due to the rise in wheat and flour prices. As a result, bakers have had to recover the increase in costs by raising the price of bread. However, IFA President Padraig Walshe told RETAIL NEWS that while he accepted wheat prices have risen, there was no justification for such a dramatic increase. “Wheat prices have gone up by 25%, but if you translate that into the bare essentials for a standard loaf, the price increase on bread should be no more than 2%. You can’t translate your inputs and say the products should go up the same amount.” The increase in wheat price occurred due to one of the worst harvests in 25 years. Droughts in the Southern States of the US and Australia, combined with a harsh winter in the Ukraine and Russia, reduced output by a half, leading to

an imbalance between supply and demand, particularly in countries like China and India. The IFA said that in recent years lower wheat prices were not passed back to consumer. Paul Kelly, Director of Food and Drink Industry Ireland (FDII), responded by saying that the price hikes were more than just because of bad harvests. “Energy has gone up by 34% due to Bord Gais Padraig Walshe, IFA President. and ESB increases. The Commission for Energy Padraig Walshe respondRegulation has reduced these ed: “I know they are saying it increases, but they are still is more than the harvest alone significant in their own right. but there is no way the wheat Energy is a significant eleprice increase could justify ment in baking bread, but that kind of increase [at the major cost is the main retail]. Our view is that it is ingredient: flour,” he noted. not necessarily about absorb“You can streamline efficiening costs or even tightening cies in the production margins, but that the price of process, but there is not a standard loaf should not much you can do with the have risen as much as it has.” main ingredient. There is a In recent years, a number global element driving the of flour businesses have price of grain and flour and closed or rationalised – that affects all bakers. It is a including Neville's in cost that they are unable to Macroom, Irish Pride in absorb, so they have no Kanturk and the Old Mill in option but to pass the price Phibsboro. on to retailers.”

Irish Exports Soaring PICTURED at the presentation of Bord Bia’s Export Performance and Prospects Report 2006/07 are Angela Kennedy, Chairman, Bord Bia; and Aidan Cotter, Chief Executive, Bord Bia. Irish food and drink exports recorded a strong performance in 2006, delivering growth to exceed €8 billion for the first time, according to Bord Bia’s report. The value of exports is estimated to have increased by €756m (or 10%) to €8.1 billion, significantly outperforming growth in total merchandise exports.

New Work Permits Launched MINISTER Micheál Martin TD has introduced new employment permit arrangements. The Act includes a “green-card” type system for highly skilled migrant workers and provides a number of new important protections for migrant employees. Four new types of employment permits were introduced: The Green Card Scheme; The Work Permit; Intra Company Transfer Permit; and Spousal and Dependant Permits. Launching the new arrangements the Minister said “There is no doubt that we have great diversity in our labour force with 9% of our workers coming from abroad. These workers have helped develop our economy by filling short term high skill gaps.”

Planning Ahead A NEW village is on the cards for Lusk, Co. Dublin, marking one of the most ambitious developments ever undertaken in the area. At an estimated cost of up to €5 billion, the scheme is set to include numerous shops alongside housing, a school, and a leisure complex. The development is located on an 110-acre site near Lusk train station, and is owned by McInerney Homes and a number of local developers. Superquinn plan to open new stores in cities such as Cork and Limerick. Speaking at the Irish Property Developers Conference, Superquinn Chief Executive Simon Burke said that the €100m investment, which includes refurbishment of existing stores, will establish the group as the major player in Irish retail. Finally, a large discount food retail unit is in store for a new development in Sligo town. A franchise has yet to choose the site, although speculation points towards Aldi or Tesco. 9


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Retail Trends for 2007 What are two of the potentially biggest retail trends in the year ahead? RETAIL NEWS talked to the experts. Online Shopping - Julie de Bailliencourt, Marketing Manager, Buy4Now (Superquinn’s online shopping provider): “We usually have a dip in online sales during January but it did not happen this year. In fact, we received a huge number of registrations and a large volume of orders. People have integrated online shopping into their everyday routines.At Christmas 2006, we achieved 30% growth across all of our stores, but online shopping is not just for Christmas - buying grocery online is as common as buying your flights or entertainment tickets online.

“Initially, we thought that Internet shoppers would be aged 20-30 and very computer literate. But a vast portion of our users, especially Superquinn users, are in the 40+ bracket and place orders on a regular basis. It is not only the young and trendy who shop online. This is growing and touches all areas of the population, all across the country.” Organic Food - Mary Morrissey, Trade Marketing Specialist, Bord Bia: “This year promises to be especially profitable for organic food. In 2005, the organic food market in Ireland was valued at just over €75m. About €65m of that came from retailers, €5m through direct sales and organic traders (farmer’s markets, etc). The rest was made up of smaller independent delis, specialist shops, etc. “Organic is very much a consumer trend at the moment, and it satisfies a lot of consumer worries. Organic farming, as

long as it is accredited, is environmentally friendly and consumers like the fact that it is largely about local produce. “Last year we undertook our second Organic Week. The overall objective was to raise awareness through bus shelter advertising, PR, radio campaigns. That proved very successful and was part of a €1.5m investment in the promotion and development of organic food in Ireland. In 2007, we plan on another Organic Week. We are conducting a lot of research in terms of exports, and will be doing a lot of PR work to raise awareness about organic food. I would advise Irish retailers to look out for Irish organic producers, find out which ones in your area.Also, be aware that larger producers are beginning to produce organic lines. This is an indication of how popular this produce is.”

Alan Cunniffe – A Tribute to a Community Hero It was with great shock and deep sadness that we heard the news of the tragic and senseless passing away of Alan, shortly after 4.30pm on Friday December 8th 2006. Alan, your natural instinct to both protect your family business, which you worked so hard to develop over the past 2.5 years, and your deep rooted community spirit to protect the pensions of the pensioners in your community were real hallmarks in the finest tradition of the Cunniffe family name. In the last 2.5 years, you took on the running of the store in John’s Green, following the sudden passing of your dad Tom in May 2004. Like him, you too were a great success story – from successfully trading the

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store and building the business for the benefit of all the family to the fantastic fund raising you undertook on behalf of many worthy causes in the local community. Your professionalism, commitment to great customer service and loyalty to Musgrave continued the tradition that Tom established over 30 years ago when first trading with Musgrave in John’s Green. You too were a real partner to our business – it’s not that long ago, drawing on your considerable skills in the field of Information Technology, that you presented us with a paper outlining some of the pitfalls we should watch out for as we

developed our new Trading Systems project. This attention to detail and deep interest in the development of the Musgrave business was richly evident in your willingness to support us above and beyond the call of normal business – again a trait inherited from both your mum and dad over the many years of trading with us. You can rest assured that your advice has been taken on board. Your tragic passing unfortunately highlights a devaluing of human life in Ireland today. In putting together these brief reflections, I am drawn to a comment passed by a neighbour on the passing of

your dad, which summed up the Cunniffe legacy to the people of Kilkenny – ‘you have made Kilkenny a better place to live in’ – those words, so true in the context of your dad, equally apply to your own contribution to the business and community life in John’s Green. To your mum Muriel, sisters Ann, Muriel and Emily, brothers Declan, James, Enda and Thomas go our deepest sympathy and support. Your passing will leave a void for us all – but we will carry many memories of your ready smile, your positive disposition and your pride in a job well done. May you rest in peace. Donal Horgan, Managing Director, Musgrave SuperValu-Centra


RN Jan/Feb07XL Stop & Shop ●

XL Shines in Wexford Morgan’s XL Stop & Shop in Tagoat, Co. Wexford, is a shining example of the retail brand’s new store format.

The

newly revamped XL Stop & Shop format has created quite an impression in the marketplace since it launched earlier last year. It has proved extremely popular with independent retailers, who like what the XL Stop & Shop brand can deliver for them and their business. The XL Stop & Shop brand offers retailers a comprehensive central billing package, extensive product range, fast and flexible delivery services and exclusive monthly promotions through the network of 25 Value Centres nationwide. One such store where which has enjoyed these benefits is Morgan’s XL Stop & Shop in Tagoat, Co. Wexford. This store, near Rosslare Harbour, which is run by siblings Richard, Patrick and Anna Morgan, completed its fit-out in the autumn and has been thriving ever since. According to Vincent Brown, Manager of Value Centre Wexford, “Independent retailers can be vulnerable to market forces: they need to be able to compete. Being a member of the XL Stop & Shop symbol group affords them the opportunity to compete with some of the larger players in their locality, as they get to utilise the buying power of BWG Foods.” In December, Richard, Patrick and Anna held an open day for their customers to thank them for their support – children were treated to an appearance by Santa Claus and enjoyed face-painting, balloon modelling and free give-

aways, while parents were treated to wine and freshly baked Danish pastries and mince pies, courtesy of Cuisine de France, as well as many keen promotions. Richard was keen to highlight the help he received from Vincent at Value Centre Wexford, as well as the dedicated XL Stop & Shop Development Team, and in particular, his Development Manager, John Byrne, who “assisted with all retail support issues, including HACCP training, fresh food advice, category management, merchandising and financial planning.” Richard also acknowledges and gratefully appreciates the help of his staff, whose cooperation and assistance have been fantastic since the takeover. Going forward, Morgan’s seem to be onto a winning formula. In addition to the revamped convenience store, which incorporates a busy hot and cold deli, an excellent range of wines and a thriving DVD rental business, the store also incorporates a busy take-away, which was opened last summer. In short, Morgan’s of Tagoat is a one-stop shop, which has been very well supported by the local community and ideal for the thousands of tourists with holiday homes in the area and passing to and from the busy port of Rosslare.

Pictured outside Morgan’s newly revamped XL Stop & Shop store in Tagoat, Co. Wexford, are (l-r): Vincent Brown, Manager, Value Centre Wexford; store owners Patrick, Anna and Richard Morgan; and John Byrne, Development Manager, XL Stop & Shop.

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RN Jan/Feb07Industry News ●

Retailers Clean Up at Awards! THE highest ever number of National Hygiene Certificate presentations to a single organisation, 303, were awarded to Centra Retailers at an awards function in Dublin. Centra owners received their National Hygiene and Food Safety Certificate from Mary Wallace TD, Minister for Food. Prendergast's Centra, Glasthule was awarded the title of Ireland’s Cleanest Foodstore in the small retailer category, as named by the EIQA (Excellence Ireland Quality Association). Also celebrated was the fact that 20 Centra stores received the inaugural Supreme Hygiene Award, which identifies and rewards retailers that have consistently performed well, based on the accumulated total of Excellence Ireland audit scores, over the past three years. Pictured are (l-r): Martin Roper, Technical Director for EIQA; Helen Murphy, Assistant Manager, Prendergast’s Centra Glasthule; and DJ McAllen, Centra Sales Director.

Daybreak Sends Lucky Couples to Paris TO spice up this Valentine’s Day, Daybreak is sending six lucky couples to Paris for a romantic trip. Every time customers spend 10 or more in any Daybreak store, they are entered into a draw, with six trips for two people to be given away.

Garvey Group to Purchase Cobh SuperValu THE Kerry-based Garvey Group have officially entered into an agreement to purchase SuperValu in Cobh, County Cork, from local businessman Eamon Miskella. The 25,000 square feet supermarket, situated on eight acres, was opened two years ago. The purchase will also include five separate retail outlets and a coffee shop. The Garvey Group expect to take over the management of the supermarket in mid-February 2007 and are retaining all existing staff. Pictured at the announcement are (l-r): Caroline McEnery, HR & Operations Director, Garvey Group; Eamon Miskella, former owner SuperValu Cobh; and Kevin McCarthy, MD, Garvey Group.

Driving a Winner! JAMES O’Hara, Head of Regional Business at Nestlé, is pictured handing over the keys of a brand new Citroen Berlingo van to Joe Mannion, Mace, Tuam, Co. Galway. Also pictured is Joe’s wife Christine, with Joe O’Connor, Manager, Mangan’s, Collooney, Co. Sligo, and Ciara Goode, Kenny Motors, Galway, who supplied the van. Joe won the Citroen Berlingo as part of the Nestlé ‘Grab a Grand’ promotion in conjunction with Mangan’s Wholesale, where consumers were given a chance to win €1,000 instantly.

Bushmills Sponsors Temple Bar Trad Festival BUSHMILLS Irish Whiskey was the principal sponsor of the Temple Bar Trad Irish Music & Culture Festival, which took place in late January. This marks the second year that Diageo have supported the festival. The four-day event is Dublin’s premier celebration of traditional arts and culture and was launched by An Taoiseach, Bertie Ahern, TD, who is pictured with (l-r): Orla Flanagan, Bushmills Brand Team; Ken Allan, Commercial Director, Diageo; and Graham Villiers-Tuthill, Bushmills Brand Team. 12


R ●N Jan/Feb07Industry News

SuperValu Kids in Action 2007 WELL-KNOWN Irish sporting personalities joined children from Gaelscoil Cholaiste Mhuire to launch SuperValu’s Kids in Action Programme 2007, which aims to encourage an active lifestyle and healthy eating habits amongst young children. SuperValu expects to distribute over €1.3 million worth of free sports equipment and around 60 tonnes of free fresh fruit to primary schools, all over Ireland, as part of Kids in Action, which runs in-store until March and is organised in association with the Irish Sports Council. Pictured at the launch in Croke Park are (l-r): rugby stars Gordon D’Arcy and Mick Galwey; Managing Director of SuperValu, Donal Horgan; and boxer Kenneth Egan.

National Sales Manager at Unilever KEN McIntyre-Barn joins Unilever Ireland as National Sales Manager for out-of-home ice cream. With extensive sales experience gained from working in both Ireland and abroad, Ken will lead a team of 36 people consisting of regional sales managers, business developers, sales support and van sales people responsible for the entire out-of-home ice cream sales business in the island of Ireland.

Dunnes Stores for Tipp Town Shopping Centre DUNNES Stores are to be the anchor tenant at the new Tipp Town Shopping Centre. Dunnes will occupy the 6,000 square metres store, which is currently under construction and will open in autumn of this year. Alongside the grocery multiple, the scheme will also comprise seven units ranging in size from approximately 129 square metres to 382 square metres. Consideration will be given to the sub division of the larger units to accommodate smaller size requirements subject to obtaining the necessary statutary consents.

Costcutter Expands Store Network PICTURED at the opening of the new Gem Costcutter in Ballyhaunis, Co. Mayo are (l-r): Niall Callaghan, Account Manager, Barry Group; John Wilson, Business Developer, Barry Group; Norman Lenihan, Head of Sales, Barry Group; Eugene Carney, Store Owner; Tony Walkin, Store Recruitment Manager; and Sean Hunt, Assistant Store Developer. Owner of the store, Eugene Carney, has owned and operated The Gem stationery and gift store in Ballyhaunis for over 17 years but recently undertook a considerable extension and refurbishment to allow for the creation of a brand new Costcutter supermarket. Meanwhile, Paul Fitzpatrick’s new Costcutter Express store opened in Ballinlough, Co. Roscommon. The new store is located between Dunmore and Ballyhaunis and its excellent delicatessen has already proved a big hit for workers in the nearby Industrial Estate. Paul’s main focus is on providing high quality, nutritious, hot and cold foods in his in-store delicatessen. Breakfasts and lunch are available in the store every day, in addition to a full range of well-known grocery products and fresh foods. Speaking at the Official Opening, Norman Lenihan, Head of Sales, the Barry Group, said “We’re delighted to support Paul in his new venture in Ballinlough. We’re confident that his new store, Costcutter Express, will be another shining example of the exceptional success that the Costcutter brand experienced in 2006.” Pictured at the official opening are (l-r): Cathriona Straeter, Matthew Cregg, Sheila Walsh, store owner Paul Fitzpatrick, Store Manager Rudolf Straeter, Maureen Kilboyle, and Laura Janikunaite. 13


RN Jan/Feb07Shop Profile ●

Mace Magic in Meath The stunning new Mace image, as seen in Pat and Kay Brogan’s and Tommy Sheridan’s new store, is taking Carlanstown, Co. Meath, by storm.

The

brand new Mace image, as seen in Pat and Kay Brogan’s and Tommy Sheridan’s stunning new store in Carlanstown, Co. Meath, is creative, colourful and cutting edge. John Sheridan & Sons is quite a well-known brand in the potato sector and when Tommy Sheridan went into partnership with Pat and Kay Brogan, who themselves have other business interests in the area, their original plan was to open a farm-shop style outlet, selling top quality fresh fruit and vegetables in an old loft adjacent to Tommy’s house. However, as the partners began the project, they realised that confining themselves to just farm fresh produce would limit the potential of the site in a rapidly developing village on a busy road. “We spent two summers investigating symbol group shops around the country,” explains Kay Brogan. “We talked with shop owners and found out what they liked about

Store owners, Tommy Sheridan and Pat and Kay Brogan, are pictured outside their new Carlanstown Mace store.

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working with their symbol group partners. We also spoke directly with the groups and found that they were all very enthusiastic about working with us.”

The Mace Brand Having spoken to a number of groups about their site’s potential, the trio made the decision to align themselves with the Mace brand when they met with Seumas Robinson, Mace Business Development Manager, and Barry Flynn, Mace Area Rep. “We knew these were people that we could work with successfully,” enthuses Tommy Sheridan. “They introduced us to the latest Mace image and we were all very impressed. The look was very appealing, holding together very well as an overall package. Seumas filled us in on Mace’s commitment not just to quality retail, but to retail at the heart of the community.”


RN Jan/Feb07Shop Profile ●

According to Pat Brogan, when they decided upon Mace as their symbol group partners, the project really moved to another level. “The scale and the cost of the project increased significantly, but both the Group and ourselves were of the opinion that if we were going to do this, it was worth doing right,” he notes. “Barry and Seumas and the store development team from Mace gave us incredible support, and also provided us with a wealth of knowledge about modern grocery retail.” The shop opened in December of last year and trade started off briskly. The impressive deli runs until 10pm, serving a range of ready-to-eat foods to suit any time of day. After six weeks of trading, the shop is already attracting lunchtime trade from nearby Kells. Adjacent to the deli is the shop’s Butcher counter. Operated by a fully qualified butcher, Brendan Kerr, who is well known in the village, it offers fully traceable top quality fresh meat to even the most health conscious customer. The addition of the butcher counter has strengthened the overall shop by providing customers with the assurance of a trusted professional standing over the quality of every piece of meat sold.

The Heart of the Community ”At Mace we have a commitment to integrating shops into the community,” notes Seumas Robinson, Area Manager for Mace. “We endeavour to work in partnership with dedicated retailers like the Brogans and Sheridans in order to create an asset that operates at the heart of communities around the country.” In the shop in Carlanstown, that promise becomes a reality. “This community is a mixture of young families with parents commuting to Dublin and older people used to a much different Ireland to that of today,” explains Kay. “As a local shop working with Mace, we are able to offer customers every modern convenience for busy commuters but also to offer customers a point of contact with the community. “For some of our older customers, the trip to the shop might be the only social interaction they have all day and we encourage all our staff to build relationships with cus-

tomers,” she continues. “We put on extra staff on pension day so that staff can spend extra time with customers and carry their bags to their cars without creating long queues at the tills.” Another vital aspect of the Mace package is the strong promotion of value offers. Branded value offers are heavily promoted within the shop. As Tommy notes, “While customers have very high expectations in terms of image and hygiene in local shops, they are conscious of being overcharged. If we want to be successful in the community, we must offer people not only top quality produce but good value for money as well. Any weak link in the package would ruin the significant investment we have made in this development.”

Continued Support The continued support of the Mace Group is another key part of the success of the project. The completion of the shop was just the beginning of the relationship between these retailers and Mace. According to Pat, “Barry and Seumas continue to provide us with exemplary levels of support. Neither Tommy, Kay, nor I had any grocery retail experience going into this project. Because we work so closely with people like Barry, you would find it hard to tell that we had never worked in the business. Any problems we encounter are dealt with swiftly by the Group and they are continually working with us to maintain and improve the standards in the shop.” Pat and Kay Brogan and Tommy Sheridan have created a community shop in the fullest sense of the word. Working with the Mace FA C T F I L E Group, their investment and Owner: Pat & Kay Brogan the expertise of Tommy & Maeve Sheridan the Group Location: Carlanstown, near Kells, Co Meath have develSize: 2,000 square feet (incl deli) oped an Number of amenity to benStaff: 15, full time & part time efit the broader Opening 07:00 – 22:00 Monday – Saturday community in hours: 08:00 – 22:00 Sunday Carlanstown. 15


RN Jan/Feb07News Rack ●

Learning to Love Magazines Your customers love your newspaper and magazine stand, but do you? Karen Meenan argues that the new year is a good time to concentrate your energy on improving your news stand and its profitability.

The RTE Guide enjoys phenomenal sales throughout the country.

What brand names spring to your mind when you think of the Newsagency category in your store? Newspread? Eason? If you thought of these names, you are connecting your Newsagency business with your distributors. Ask your customers to think of brand names in your Newsagency category and they will have a different list – The Irish Times, RTE Guide, Woman, Nuts, Fairy Princess, Hello, Spiderman … the list will be as 16

varied as your customers for obvious reasons. The answer depends on which customer you ask, on what day and at what time. For example, the person who has just said The Irish Times is probably a business man or woman and the time is probably early morning. The person who said Nuts is probably a builder and the time is probably around ten o’clock – an accompaniment for a breakfast roll and a bottle of Lucozade. The little girl on the way home from school in

the afternoon will say Fairy Princess and the woman looking for a little treat with a cup of coffee and some chocolate has just said Woman or Hello… You get the picture. We retailers see the world of news and magazines in a totally different light to our customers. Thank God! We see this category as being difficult to manage, frustrating, time consuming, and would gladly give over a metre bay of this category


RN Jan/Feb07News Rack ●

Woman, a star performer on your News Rack.

Maximising Profit in the Newsagency – Training Course THE FAS/CNSA one day training course “Maximising Profit in the Newsagency” is underway again. Courses are held in FAS Jervis Street from 9.30am to 3.30pm. Price is €105 (EU grant aided) and price includes lunch and course notes. Next dates for 2007: Thursday 15th February

The perennially popular Hello magazine.

should a metre of space be required to house a new coffee machine with a skinny latte and hot chocolate facility, or if needed to install an ATM or a digital photo processor, or a new CocaCola cooler or in fact if space is needed for anything at all, you will probably gladly give it up to relieve you of some of the hassle associated with the Newsagency.

Frustrating Category Research has shown that this category ranks as the highest point of frustration for retailers but at the same time, the research shows that your customers think the Newsagency, particularly the magazine stand, is the part of your shop they like the best! What a pity for us that we can’t seem to enjoy the magazine stand as much as our customers: then we might be able to derive more profit from the category. A recent study shows that customers still view shopping as a chore, even though we as retailers might still get very excited about a new oven or smoothie maker or

Thursday 15th March

Contact Jackie Fitzgerald at CSNA (01) 288 7817 for a full list of dates.

chilled cabinet or that we might have spent a small fortune on shelves, tiles or lighting – our customers have different likes and dislikes when they enter our stores. Perhaps because retailers have invested so heavily in their stores, particularly since the early 1990s,

“When asked what part of the shopping experience customers enjoyed the most, they consistently placed magazines at the top end of their shopping enjoyment in your stores.” when convenience stores really started to make their mark on the landscape of every town and village in the country, our incredibly high standards of retailing have simply been taken for granted by our customers. Apparently they no longer see the offering of ‘all singing, all

dancing’ stores, which offer everything from smoothies to signature sandwiches, as being extra special – but rather expect that all stores should offer the same level of layout and design. They have learned to expect excellence in retailing.

Customers Love Magazines When asked what part of the shopping experience customers enjoyed the most, they consistently placed magazines at the top end of their shopping enjoyment in your stores. In your shop, your customers love the magazine stand the most, while the runner-up is the wine section, but then the wine section is a place we all seem to like. But a wine section is only for wine-drinking adults, primarily for evening trade, so that category effectively cuts off all your non-wine drinking adults, children, teenagers (another hassle here with ID cards), pregnant women, teetotallers, and pretty much all your morning and afternoon customers. 17


RN Jan/Feb07News Rack ●

The Irish Times that I got a phone call from him to sort it out! Now I wonder how many customers would actually be so upset if that store had run out of coleslaw, eggs or a certain brand of yogurt? And yet, we seem to place much more importance on the deli and grocery parts of our businesses. Do we not understand the needs of our customers regarding the Newsagency or have we been simply too frustrated and misunderstood in the past by our distributors to care any longer? Perhaps there is a combination of reasons. Maybe your wholesaler places lots of importance on other areas of your store such as fresh foods, deli and grocery and not enough on Spiderman & Friends, the hugely popular Newsagency. Perhaps you Marvel superhero is the star of the top-selling comic. have an Environmental Health Officer putting pressure on your to replace the stairs Even when you add an off licence to and upgrade your canteen facilities. your list of offerings in your store (you Perhaps you don’t get to see an probably took some precious space Eason’s or Newspread representative from the Newsagency to accommodate and when you do, is that a productive a beer cooler) you are still eliminating meeting or just another opportunity potentially half of your customers to vent your frustrations regarding with this new revamp. box-outs and lost credits? I am not suggesting for a moment that you should not have a wine or an off licence in your store, I am only Utilise Your News suggesting that if your customers Stand’s Potential already like the magazine category So now it is 2007 – a new year full of and are already pre-disposed towards new promise and new potential to parting with their hard-earned cash make more profit. Why not make a in this part of your store, this makes New Year resolution to care about the it an extremely important category, Newsagency – if for no other reason worthy of your time and attention. than basic common sense – your customers love magazines? They love

the bit of glamour and escapism magazines bring into our lives. The good news is that magazines and newspapers seem to be recession proof – we buy them when we have money, hence the great interest in home improvements magazines, researching how to spend SSIA money. We also buy magazines when money is tight – a cheap dream. For less than five euro, you can buy a bit of the celebrity lifestyle or dream about buying a property in the sun or fantasise about new golf clubs… and if all these

“Magazines and newspapers seem to be recession proof – we buy them when we have money, hence the great interest in home improvements magazines, researching how to spend SSIA money. We also buy magazines when money is tight – a cheap dream.” reasons seem a bit ‘airy fairy’ to you, a practical no-nonsense retailer…. then think again! ‘Airy Fairy’ is what your customers want, and it is your business to sell those dreams at a profit! So, have another look at the category – consider making more space for newspapers and magazines. If you can’t allocate more floor space, consider investing in deeper shelving to allow you pack out more dreams and wishes and lotto wins… Now doesn’t that sound like a good way to start the year!

Newspapers – ‘The Daily Fix’

About the Author

Newspapers for many are a daily fix – there is no customer more frustrated than one who finds out that you have just sold the last copy of The Irish Times – even though it is well past six o’clock in the evening – the day is simply not complete without the daily ritual. One customer who happened during the course of his work to read RETAIL NEWS was so frustrated by his local store consistently running out of

RETAIL consultant Karen Meenan has worked in BWG Foods as Brand Manager, Marketing Information Manager and Sales Manager during the 1990s. She then opened her own store in Swords, Co Dublin, as a SPAR 8-12 franchisee, which she operated profitably for five years. She now runs her own consultancy business, Results Training & Marketing, focusing on net profit and how to maximise profit for the retailer. For more information, contact Karen on 086 6027711 or by email: kmeenan@eircom.net.

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RN Jan/Feb07EuroSPAR ●

Flagship EuroSPAR Opens in Dublin The rapidly growing EuroSPAR supermarket network have opened their flagship store on Dublin’s Barrow Street. THE rapid expansion of the EuroSPAR supermarket brand in the Irish retail market reached a significant milestone recently, when EuroSPAR Ireland officially opened the latest addition to the network on Barrow Street in Dublin. The new flagship store showcases the EuroSPAR retail offering, and will be central to the ongoing development of the brand. The development of the 7,000 square feet store involved an investment of more than €2m and the store now employs 30 people. EuroSPAR Barrow Street is designed to bring the next stage of store design to Irish consumers by optimising the range of products and

services offered in one location for weekly and top-up supermarket shoppers.

Unique Features Unique features of the flagship store include the Russell & Ryan in-house butchery and the bespoke Kitsu Noodle Bar. In addition, the store includes an extensive traditional deli counter, a fresh fruit and veg department, full off-licence, in-store bakery, a broad range of health foods, a hot and cold ‘Enjoy Now’ range and a seating area for up to 20 customers. According to Peter Kealy, Managing Director of SPAR Ireland, “The development of EuroSPAR Barrow Street is a central element of

our EuroSPAR expansion programme and is designed to cater for the new Irish consumer. Ongoing research has shown us that Irish consumers want convenient supermarket shopping at the right price, but not at the expense of nutrition or healthy eating. “With the introduction of speciality departments, such as Russell & Ryan and Kitsu Noodles, we are continually offering our customers solutions to meet their ever-changing needs,” he continued. “EuroSPAR Barrow Street signifies the further development of efficient nutrition within our stores. The focus is on ‘good food’ that is convenient but also nutritious and healthy.”

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RN Jan/Feb07Drinks News ●

Jameson’s Strong Growth Continues “JAMESON continues to surpass its objectives and has grown value (18%) ahead of its volume growth of 11%, benefiting significantly from its premium price positioning,” notes Paul Duffy, CEO of Irish Distillers (pictured). “On the home market, Irish Distillers affirmed its leadership in the spirits and wine category and performed well in the key Christmas period.” Jameson has continued to perform exceptionally well for the first six months of this fiscal year (06/07), with double digit growth of 11% for the period. The brand enjoyed particularly strong growth in Russia (+82%), South Africa (+46%) and in the US (+18%). Meanwhile, Jameson’s parent company, Pernod Ricard, have posted strong growth figures. The company’s interim consolidated net sales (1 July to 31 December 2006), excluding tax and duties, totalled €3,507 million, an increase of 7.3%. This growth resulted from: excellent 9.7% organic growth; an unfavourable (2.7%) foreign exchange impact, primarily due to the US dollar; a Group structure effect limited to 0.7%.

SuperValu Midleton Wins Top Off Licence Award SUPERVALU Midleton were announced overall winners of the prestigious Diageo/SuperValu Off Licence of the Year 2006/07 at an exclusive black tie ceremony hosted in the Radisson Hotel in Galway. SuperValu Carrickmacross, SuperValu Kanturk and SuperValu Killaloe were announced as the three runners up to the respected award. Tommy Grimes and Marta Becka are pictured receiving the award for Overall Winner on behalf of SuperValu Midleton from John Cooney of MSVC and Diageo’s Paul Costigan.

Appointment at Diageo Ireland DIAGEO Ireland have announced the appointment of Gráinne Mackin(pictured right) as Head of Corporate Communications. She joins the Corporate Relations Department headed by Michael Patten, Group Corporate Relations Director for Diageo in Ireland, where she will have responsibilities for the management of corporate reputation, issues management, engaging in stakeholder communications and supporting strategic communication priorities for Diageo in Ireland.

Rosemount’s Stylish New Look

Top 50 For Frankie MUNSTER hooker Frankie Sheahan is presented with a special award marking his 50th appearance for Munster by Pat Maher of Heineken Ireland.

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ROSEMOUNT, the stylish Australian wine, has undergone a complete transformation, refining its taste and revolutionising its packaging, with a unique eye catching diamond-shaped bottle, and the introduction of screw cap closures. Edward Dillon has taken over the distribution and marketing of Rosemount Wine since January 1. Pictured at the launch of the new look are model Beth Gaynor, posing as Audrey Hepburn, with resident winemaker Justin Knock; Caragh Walsh, Development Manager for Rosemount; and Peter Corr, Regional manager for FGL Wine Estates EMEA.


RN Jan/Feb0775 Years of Mangan’s ●

Mangan’s Celebrate 75th Anniversary Formed in 1932, Mangan’s have grown to become one of the biggest businesses in the West of Ireland, across their cash and carry, retail and foodservice brands. MANGAN’S Wholesale is celebrating its 75th anniversary this year, and this ambitious West of Ireland company shows no signs of slowing down. With a turnover of some €200m and employing 300 workers across its cash and carry, foodservice and symbol group brands, Mangan’s continues to grow and develop alongside the needs of the customers it serves. Indeed, the third generation of the Mangan family are now involved in the running of the business, which bodes extremely well for company’s future.

A Brief History The first Mangan’s-operated WS store opened in Kilmihil, Co. Clare in 1932, with Martin and Tommy Mangan quickly developing a winning business formula, establishing a reputation for good value and quality service. The 1960s saw huge growth for Mangan’s, with diversification into cash and carry trading, including the development of cash and carry depots in Letterkenny, Collooney, Castlebar, Galway, Ennis, Cork, Tipperary and Tullamore. 1967 was a significant year, which saw Mangan’s forming an alliance with the Mace group, expanding into the area of convenience shopping for the first time. 30 years later, in 1997, the launch of XpressStop came about as a direct result of changing market trends. XpressStop, the entry level solution for independent retailers, has enjoyed continued growth and development in the intervening decade, supported by excellent advice and support from Mangan’s. In 2002, Mangan’s acquired the Vivo franchise in the Republic of Ireland and there are currently 50 Vivo stores throughout Ireland, enjoying Mangan’s comprehensive retail support programme.

Strategy for Success The company is not resting on its laurels, however, and has a comprehensive strategy in place to progressively

grow Mangan’s share of both the retail and foodservice markets. Their objectives include: - Growing the number of Mace outlets in the West of Ireland. - Developing the Vivo brand as the spearhead for geographic growth. - Growing the XpressStop brand. - Consolidating and growing the Mangan’s Foodservices brand through increasing their offering and possible acquisition opportunities. - Growing both their delivered and cash and carry businesses.

Pictured celebrating 75 years of Mangan’s are (l-r): Gabriel Mangan, Chairman; Terence Mangan, Managing Director; and Peter Foley, Chief Executive.

Country Deli Another area of focus for Mangan’s is the development of their bespoke ‘Country Deli’ concept. This innovative deli solution has already been rolled out to 14 symbol group stores, with that figure rising to 50 by the end of the year. A strategic partnership with Kerry Group, Country Deli offers stores a significant point of difference at their deli counter, with further components, such as bread and coffee, to follow.

Pictured are (l-r): Niall Mangan, Foodservice; Gay Mangan, Chairman; Terence Mangan, MD; Shirley Mangan, Finance Director; and Leo Mangan, Director.

75th Anniversary Celebrations As part of Mangan’s 75th Anniversary celebrations, they will be engaging customers, suppliers, local communities, national charities and, of course, their staff in a range of events throughout the country. For consumers, 75 items in-store will be selected as special offers, while each promotion will offer a variation on a ‘Buy 7, Pay for 5’ mechanic. Throughout the promotional period, nominated SKUs will feature promotional points for retailers, which can be redeemed against a range of preselected prizes. The company is also organising a charity cycle, ’75 Miles For Crumlin’, in aid of the National Children’s Hospital, Crumlin, in conjunction with Homestead/Stonehouse. Each leg of the 75-mile cycle will start and finish at a Mangan’s depot. There will also be a range of special promotions running throughout their symbol stores over the course of the year in Mace, Vivo and XpressStop stores. 21


RN Jan/Feb07Healthy Options ●

Healthy Profits Irish consumers are making a concerted effort to eat healthier, which brings a wealth of profit opportunities for retailers.

The

fact that Irish people are eating a lot healthier than ever won’t come as a surprise to anybody. The majority of Irish consumers are trying to improve the type of food they eat, particularly at this time of year when many consumers try to undo the excesses of the festive season, bringing attendant profit opportunities for retailers. Whether it’s as simple as eating a balanced diet, that’s not too high in fat and with plenty of fibre, increasing their intake of prebiotic foods or taking more regular exercise, Irish consumers are making a concerted effort to improve their health. The Health Promotion Unit at the Department of Health, since its establishment in 1988, has run regular campaigns, promoting healthy eating, such as the hugely successful campaign aimed at encouraging consumers to eat at least five portions of fruit and vegetables a day. 22

Health Promotion in Ireland Indeed, the Government have acknowledged that improving health and well being could only come about as a result

of engaging with key stakeholders at community level. Tim O’Malley TD, Minister of State at the Department of Health and Children, recently launched the book ‘Health Promotion

Flora’s Health Mission FLORA is on a mission to make Irish hearts healthier. The Flora Love Your Heart Campaign supports and encourages heart health awareness and a healthy lifestyle. Flora want to inspire people to get a healthier heart through activities such as the Flora Womens Mini-Marathon and make heart health relevant to consumers (‘Test the Nation’ campaign). They want to empower people to do something about getting a healthy heart with their range of products to suit everyone’s heart health status. Consumers can check their own heart age by logging onto www.floraloveyourheart.ie to find out what age they really are.



RN Jan/Feb07Healthy Options ●

in Ireland: Principles, Practice and Research’. The first of is kind to be published in this country, the book provides a comprehensive exploration of health promotion in Ireland for both students and practitioners. “The establishment of Health Promotion Departments within all the former health boards led by senior managers and with dedicated budgets was a significant development,” noted the Minister. Speaking on the re-organisation of the Department of Health and Children and the handing over of executive functions to the Health Service Executive, the Minister said, “This presents an opportunity to address, in a more fundamental way, the broader determinants of health, such as lack of education or low socio economic status, and reduce health inequalities.”

Combating Obesity One of the main reasons behind the move towards healthy eating is to combat obesity, which has been described by the WHO as a global epidemic. Obesity occurs because calorie intake exceeds calorie consumption and it a modern day phenomenon because calorie expenditure has decreased over the past half century. In 2000, more that 300m people worldwide were obese and it is now projected that by 2025, up to half the population of the US will be obese if current trends are maintained. In Ireland, 18% of adults are obese and 39% are overweight. Data suggests that there could be more than 300,000 overweight and obese children on the island of Ireland and the rate is rising at a probable 10,000 per annum. Following the recommendations of the National Taskforce on Obesity, Ireland has a National Nutrition Policy, the purpose of which is to provide strategic direction on nutrition for the next five to 10 years, and forms part of the Government’s response to the problem of overweight and obesity in Ireland. The key strategic objectives of the policy include: • Increasing the percentage of young people in schools who consume the 24

Ocean Spray RICH in Vitamin C and antioxidants, Ocean Spray cranberry juice is full of goodness and appeals to consumers of all ages. It also claims to be the number one cranberry brand in Ireland, with 55% market share (ACNielsen, December 2006). The Ocean Spray range is available in a range of flavours including Cranberry Classic, Cranberry & Raspberry, Cranberry & Blackcurrant, as well as the new Cranberry & Pomegranate and Cranberry & Blueberry. The Ocean Spray Light portfolio includes Cranberry & Mango, Cranberry & Blackcurrant, Cranberry & Raspberry and Cranberry Classic, while the range also includes a selection of premium chilled drinks in convenient 500ml, 330ml and 200ml TetraPak. recommended daily servings of food for a healthy diet, through implementing the food and Nutrition Guidelines for preschools, primary and post primary schools. • Facilitating an increase in the percentage of parents providing healthy food choices in the home. • Actions to facilitate parents and

families to prepare healthy, convenient and economical meals in the home will be taken. • Increasing fruit and vegetable intake among young people through the implementation of practical programmes such as the Food Dudes. • Increasing the provision of information and training to help key

Lyons Decaffeinated THE decaffeinated tea market continues to grow strongly, with 19% value growth in the last year (ACN Extended Scantrack Dec 24th 2006). Lyons are set to increase the market further and to change consumer perceptions about decaffeinated tea by communicating “All the flavour without all the caffeine” on-pack and in advertising. Lyons Decaffeinated Tea now comes in a handy 40’s box which will help encourage consumers to try a decaffeinated tea if they have not already done so. Lyons Decaffeinated Tea will be supported heavily during 2007 with a nationwide print campaign, PR, instore demonstrations and promotions.



RN Jan/Feb07Healthy Options ●

players, especially health professionals, tackle poor nutrition among young people. • Developing initiatives to care for overweight young people and prevent them from making the transition to obesity. • Working in partnership with relevant Government Departments and agencies to promote healthy eating and help reduce food poverty.

Healthy Eating & Specialised Diets The Irish Nutrition and Dietetic Institute (INDI) recently published a new report on the cost of healthy eating and specialised diets in Ireland. The report brings an up-todate focus on the varying costs of healthy foods and, also, contains modernisation proposals based on the latest dietary and medical views and the increased availability of many of the ingredients required for special diets. The report, by Dr. Muireann Cullen of INDI, is the most comprehensive review of specialised diets and food costs that has been carried out in Ireland in the past decade. The study examines how the cost of special diets and the requirements for a healthy food diet in general varies considerably depending on where a person shops. The study recommends, following its detailed research, a new framework for categorising the various diets in which all of the prescribed diets would fall into one of four categories: - Gluten Free Diet - Low Lactose Milk Free Diet - High Protein High Calorie Diet - Liquidised Altered Consistency Diet. In undertaking the work, the INDI designed an example of a nutritionally balanced, healthy eating diet covering a seven-day period and also examples of the various specialised diets. They then carried out a survey to find out the cost of those diets at a range of shop types, including convenience stores, supermarkets and large low-cost stores. 26

Healthy Drinks Take Off BEVERAGES that support healthy diets are among the world’s fastestgrowing food and beverage categories, according to the latest study released by ACNielsen Global Services. The Executive News Report, titled ‘What’s Hot Around the Globe – Insights on Growth in Food & Beverage Products’ noted that Drinkable Yogurts in particular was the fastest-growing food and beverage category purchased by consumers worldwide. “Around the world, consumers are balancing health and nutrition concerns with a desire for convenience and value,” said Alan Purcell Head of Marketing, ACNielsen Ireland. ”Drinkable Yogurt is not only healthy and good tasting, but in many cases, the packaging offers the convenience and portability that consumers crave.” In total, nine product categories grew by double digits compared to 2005, with Drinkable Yogurts topping the list. Top Category Growth (categories over US $ 1 billion globally) Top Categories

Mid ’05 – mid ’06 Growth Rate

Drinkable Yogurt (40/45)

18%

Fresh Fish and Seafood (10/10)

12%

Alcoholic Cider (9/18)

11%

Fresh Ready-to-Eat Salad (14/14)

10%

Baby Formula (48/55)

10%

Dairy-Based Drinks (32/42)

10%

(Markets Growing/Markets Measured in parentheses)

Top Category Growth (categories between US $100 million and US $1 billion globally)

Top Categories

Mid ’05 – mid ’06 Growth Rate

Fresh/Refrigerated Soup / Bouillon / Stock (11/13)

18%

Fresh Herbs / Spices / Seasoning (6/7)

17%

Frozen Meal Starters (3/4)

10%

(Markets Growing/Markets Measured in parentheses)



RN Jan/Feb07Healthy Options ●

WeightWatchers Preserves WEIGHTWATCHERS have responded to the growing trend in healthy and low fat eating by offering a delicious range of low sugar preserves, distributed by Premier Foods Ireland. The range consists of five tempting flavours – Raspberry, Strawberry, Blackcurrant, Apricot and Orange Marmalade. Containing 50% less sugar than regular jam and with only 17 calories per teaspoon, WeightWatchers Preserves provide all the sweet fruity taste of standard jam with only half the sugar, as well as 0g saturated fat and only 1/2 a WeightWatchers point per heaped teaspoon.

Odlums Oatflakes

Odlums Quick Breads ODLUMS have done it increased their range of healthy and nutritious products! Odlums Quick Bread mixes are ready to bake in just two minutes and come in a choice of varieties, which include: 9 Grain Wholemeal, Farmhouse Brown, and Hearty Cracked Wheat. These products are high in fibre, low in saturated fat and can be enjoyed as the perfect healthy accompaniment to any meal. Wheat Free Quick Breads have recently been added to this range, appealing to people with wheat allergies or those following a wheat free diet. 28

FOR a healthy start to the day, Odlums Oatflakes are an essential breakfast choice. In response to growing consumer interest in porridge, Odlums have launched two new products. ‘Smooth and Creamy’ contains 10 pre-measured sachets of 100% wholegrain oats that microwave in just 90 seconds, the perfect option for consumers who seek a healthy breakfast but don’t always have time to prepare it each morning. Odlums new Organic Oatflakes are fully certified by the Organic Trust, bringing the best that nature can offer. The packaging has a distinctive natural look, giving strong on-shelf stand-out.

Kelkin Juice Range KELKIN’S innovative juice range includes long established favourites such as Apple Juice (1 litre), Cranberry Juice (1 litre/200ml) and Multivitamin Juice (1 litre/330ml). Kelkin’s (NFC) Orange Juice is naturally high in Vitamin C and rich in folate and potassium while Kelkin’s new Pomegranate and Apple Juice (1 litre) is an antioxidant superpower with high levels of naturally occurring polyphenols and phtyonutrients. Organic juices (750ml glass bottle) include Organic Carrot Juice, Organic Prune Juice, Organic Red Grape Juice and Organic Vegetable Juice. New additions to the range are Organic Tomato Juice and Organic Carrot & Orange Juice. The Kelkin range also includes rice cakes, muesli, microwave popcorn, peanut butter and dairyfree soya.

Hartley’s Low Calorie Readyto-Eat Jelly Pots DISTRIBUTED by Premier Foods Ireland, the recently launched Hartley’s Low Calorie Ready-to-Eat Jelly pots are the perfect snack for consumers watching their waistline. Available in a 175g size in two delicious flavours, Cranberry & Raspberry and Mango & Passion Fruit, Hartley’s new jelly pots are fat free and contain less than 10 calories each. 2007 will see the range supported with a fully integrated marketing campaign, including sampling and consumer press activity. The Hartley’s range also includes lunchbox size individual 125g Jelly pots, in strawberry, raspberry and a family value pack which features two low sugar orange and two low sugar strawberry pots.

Yoplait Essence 2006 saw the launch of Yoplait Essence - a range of four daily boosts. Each boost contains ingredients which are designed to deliver specific health benefits as specified in the product names. The range includes: Yoplait Essence Lower Blood Pressure & Cholesterol; Yoplait Essence Immunity Boost; Yoplait Essence Healthy Digestion; and Yoplait Essence Lose Weight.The Yoplait Essence range was launched in response to the growing functional foods market and increased consumer desire for products that optimise personal health and well-being.


RN Jan/Feb07Healthy Options ●

Quick Oats from Flahavan’s

Volvic

THE Flahavan’s Microwaveable Quick Oats range includes the Quick Oats Drum, Quick Oats Sachets and Portable Porridge in a Pot (Original or Strawberry flavours), all of which combine health, convenience and flavour qualities. These new products have a strong appeal to people who care about their diet and appreciate the positive nutritional value of traditional porridge but don’t always have time to prepare it at home each morning.

VOLVIC continues to grow in the convenience sector. Volvic Natural Mineral Water recently announced the commencement of a three year sponsorship deal with ITRA (Irish Tag Rugby Association). This new sponsorship will include the Volvic Tag Rugby Spring and Summer leagues as well as the Volvic Tag Rugby one day blitz events. Volvic is also bringing a new execution to its massively successful ‘Volvic Regenerates’ campaign, while the Volvic brands will also be heavily supported both above and below-the-line. The range includes Volvic Natural Mineral Water, Volvic Touch of Fruit and Volvic Splash.

Hellmann’s Extra Light Mayonnaise

Yakult GROWING at 26% in 2006 (double the growth of the category - ACNielsen), the Yakult brand looks set to continue its impressive growth in the Irish market with a comprehensive communications strategy in place for 2007. Investment in excess of €1.5m will see an intensive programme of above and below-the-line activity, comprising in-store demos, on-pack promotions, direct marketing, a new television and print advertising campaign and an on-going programme of public relations activity to help drive awareness and in-store sales for Yakult and Yakult Light.

SINCE its launch, Hellmann’s Extra Light has been a huge success, bringing new consumers into the mayonnaise category. The key success factor is the fact that there is no compromise on taste. Hellmann’s Extra Light Mayonnaise is 5% fat and is Hellmann’s lightest mayonnaise ever. This great tasting mayonnaise will be supported in-store through tastings and a strong outdoor/press campaign is planned for 2007

Flahavan’s Organic Oats FLAHAVAN’S, recognised as producers of the best quality, awardwinning oat cereals in Ireland, have a new range of Organic Oats available in 1kg bags. Made from 100% organic oats and milled in an environmentally-friendly manner, the range includes Organic Porridge Oats and Organic Jumbo Oats – a larger thicker oat flake ideally suited for making porridge with extra bite. Flahavan’s long heritage of oat milling is reflected in the packaging, which has a distinctive retro feel, derived from an original Flahavan’s design from the 1940s and made from 100% recycled paper.

Knorr Vie KNORR VIE is the only product that offers consumers almost 50% of their daily intake of fruit and vegetables in one little bottle. Knorr Vie is free from artificial colours, flavours, preservatives and added sugar and is naturally rich in antioxidants. Now available in four delicious flavours: New Pineapple, Passionfruit & Sweetcorn; Apple-CarrotStrawberry, Banana-Pumpkin and Orange-Banana-Carrot. Six-packs are now available in-store.

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RN Jan/Feb07SPAR Food Strategy ●

Applying SPAR’s Food Strategy What is strategy without results? A year after SPAR launched their food strategy, Retail News investigates the results. The SPAR Food Strategy was launched in December 2006 with the opening of three pilot stores: SPAR Merrion Row, Dublin 2, SPAR Millennium Walkway, Dublin 1; and SPAR Express, Castlebar, Co. Mayo. The opening of these stores was the culmination of a body of work that began in BWG over 12 months previously, when management realised that if SPAR wanted to respond to the rapidly evolving Irish consumer, a new approach was needed. International retail consultants were engaged to involve an external perspective, project teams within BWG were set-up, and suppliers were selected with whom the new solutions would be developed. The rule book was thrown out when it came to store layout and design: traditional store departments evolved from ‘frozen’, ‘ambient’, ‘chilled’ into shopping categories determined by customers’ needs. Five ‘shopping missions’ were created.

Enjoy Now Food consumed in-store (in the new ‘Chill Out’ zone) or within 15 minutes of leaving the store, can be found in the ‘Enjoy Now’ section. Considering SPAR’s heritage, it is not surprising that this was the area where product innovation was most evident. The Treehouse Juice and Smoothie Bar, developed by the SPAR team, working with local Irish supplier Sunshine Juices, is a vibrant, exciting fresh juice and smoothie brand with over 80 juicees, smoothies, yummees and juices made to order. The SPAR Signature Selection Sandwich range was developed with Cuisine de France, and consists of 10 hot and cold luxury-filled sandwiches on bespoke breads. Retailers had a choice of premium coffee brands: Irish-

30

owned Insomnia and Tim Hortons – the celebrated Canadian donut and coffee supplier.

Take Home There were also significant developments in the ‘Take Home’ area of the store, the section of the store that sells food to be consumed later in the evening. Innovative design responses delivered food that is ready-to-cook, ready-toheat, or ready-to-eat in one section of the store. Take Home features Dinner is Served, a range of freshly prepared hot and chilled food.

Other Store Sections The other three sections in the stores are ‘Stock Up’ – traditional cupboard replenishment times are found here; ‘Your Usual’ – habitual purchases, such as newspapers and cigarettes; and ‘Let’s Celebrate’ – a part of the store dedicated solely to products bought to celebrate a night in or a night out, such as flowers, chocolates, greeting cards, and consumer offers.


RN Jan/Feb07SPAR Food Strategy ●

welcoming experience to every customer that walks into my store, and we strive to achieve that with every transaction here in SPAR Merrion Row.” This positive performance was not only in SPAR Merrion Row: the same results are true of the other pilot stores. SPAR Express in Castlebar had been built on an existing SPAR Express site, while SPAR Millenium Walkway had been in another retail unit a few doors from where it is currently located. Both stores have experienced a significant increase in retail sales.

Pace and Effectiveness

The Results The three SPAR stores were very well received and this “pioneering new SPAR format” was welcomed by customers, retailers and the media alike. However, as Winston Churchill once said, however beautiful the strategy, one should occasionally look at the results. It is when the results are examined that one is truly impressed by SPAR’s Food Strategy. SPAR Merrion Row is a 300 square-metre store in a fantastic location in the heart of Dublin’s city centre. Since opening its doors in December 2005, the store has gone from strength to strength, developing a loyalty with workers in the D2 area, who depend on the store for their cappuccino fix from the Insomnia barista bar, or a Roman Wrapsody from the SPAR Signature Selection range, washed down with a Berry Blast from the fantastic Treehouse Juice and Smoothie Bar in the window. The seats in SPAR Merrion Row have proven to be a real hit with local deal-makers and students alike.

Increased Sales and Margin Most importantly, financial and trading performances have been very successful. In their first year, SPAR Merrion Row witnessed an increase in gross margin, coupled with an increase in retail sales, when compared to trading figures on a comparative SPAR site. Thomas Ennis, SPAR Merrion Row, said of the strong performance, “The products are a hit with the local customers. The food and drink offers match their needs, while the layout, location and product range matches their lifestyles. I feel that it is so important to deliver a friendly,

However, it could be argued that a strong performance in three state-of-the art stores by no means validates a whole company strategy, particularly when you consider the scale of the SPAR operation. It is when you consider the pace and effectiveness with which the SPAR Food Strategy is being rolled out that it becomes apparent that SPAR’s Food Strategy can be legitimately deemed a success. To date, over 20 stores have been fully fitted out with the new Food Strategy image, they have all of the elements that one would find in the three pilot stores. However, SPAR’s retail and development teams are fully aware that not every element of the food strategy will suit every store. This was how the formats were designed, to facilitate retailers adopting the appropriate offers for their stores and their local customers’ needs. To date, 72 SPAR stores now have a premium coffee offer (Tim Hortons/Insomnia); Signature Selection Sandwiches are in 54 stores; while Treehouse Juice and Smoothie Bars are in 35 stores nationwide.

Continued Growth This fast-paced roll-out is set to continue into 2007, as more SPAR retailers talk first-hand to friends and acquaintances who are trading very well following the incorporation of elements of the Food Strategy, and register their desire to have a Treehouse Juice and Smoothie Bar or the Signature Selection Sandwich range available in their store. In the highly competitive world of C-store retailing, clear differentiation from the competition is key, and through the opening of three pilot stores just over a year ago, SPAR succeeded in presenting their new Food Strategy, trialing new concepts, determining the effects on retailers’ sales and profitability and made it possible to apply the food strategy. Winston Churchill would be impressed! 31


RN Jan/Feb07Easter ●

Egg-citing Easter Ahead! The biggest chocolate gifting occasion of the year is almost upon us.

Cadbury Buttons Easter Chick is made up of a thick milk chocolate shell filled with delicious Cadbury Buttons.

Cadbury Easter Egg Delight grew by a massive 37% in value in 2006, prompting the introduction of two new variants – Giant & Large Dark Eggs.

Easter

is a big and growing occasion, with Easter confectionery valued at over €30m in 2006. Indeed, Easter is the biggest single chocolate gifting occasion of the year, and thus represents a terrific opportunity for retailers of all sizes to drive sales.

Cadbury Cadbury Easter eggs are the number one choice with consumers, with Cadbury Dairy Milk the number one selling shell egg brand. Indeed, four out of the top five brands purchased are from the Cadbury range. Cadbury continue to drive growth through innovation within the premium category. Cadbury Easter Egg 32

Delight has growing by a massive 37% in value in 2006. Building on this success, Cadbury can now introduce two new variants – Giant & Large Dark eggs. Giant Easter Egg Delight contains three indulgent truffle eggs contained in three luxurious thick milk and dark chocolate shell eggs. Retailing at €26.80, this is the perfect premium offer for loved ones. With the emergence of dark chocolate as a strong winner with consumers, Cadbury are also introducing a Large Dark Easter Egg Delight. Made with 60+% cocoa solids, it’s sure to appeal to an audience that currently have a limited range to choose from. Supported by the strength of the

Cadbury brand and its eye-catching packaging, it’s guaranteed to have maximum standout on-shelf. Cadbury are sponsors of the GAA Under 21 Championship, and further building on this great partnership is the introduction of the GAA Large Dairy Milk egg. With appeal for both young and old alike, it reinforces the heritage that both brands have. Continuing to drive the growth in large eggs will be the introduction of two new variety eggs – Flake Variety Egg & Dairy Milk Variety Egg, each offering the consumer something new to consider at the higher end of the market. In response to consumer demand,



RN Jan/Feb07Easter ●

Cadbury are innovating within the novelty arena. Cadbury Buttons Easter Chick is made up of a thick milk chocolate shell filled with delicious Cadbury Buttons. It provides the perfect novelty gift for all the family. The product retails at €4.62 and is available in a hod and display tray. Easter 2007 will see Cadbury spend over €1m on a major support package to help retailers make the most of the occasion, including press, TV and outdoor advertising.

Nestlé Valued at €28.1m with buoyNestlé’s Black Magic Easter Egg has been ant growth of 16% year on reintroduced by popular demand and in year, Easter is a key time for response to the increased consumer retailers to drive sales and interest in dark chocolate. growth. 80% of gifts purchased at Easter are confectionery eggs. The Nestlé Easter range has a wide selection, through kids and teens to premium eggs, bringing choice and value to the market. This is essential for retailers, as consumers buy five eggs on average at Easter each year. Some of Ireland’s favourite brands are included in the Nestlé Easter range, such as Kitkat, Aero, Smarties, Rolo and Yorkie, giving appeal across a wide segment. New and exciting innovation packs will drive sales this year. The educational Smarties Book Prize Egg contains one award-winning book and the The popular Mars And Friends egg from opportunity to collect two Masterfoods returns, including full size Mars, Mars Delight, Twix and Snickers more, encouraging reading bars. and real value for money. The book is valued at €7.00, so retailing at €7.99, this Easter offerings, including Milkybar, Egg option is a real incentive for conIreland’s number one white chocolate sumers. egg. The Smarties eggs range The fun Pink Smarties Egg, conincludes added fun offerings such as taining a jewellery set inside the egg, the Smarties Eggs Set, with colouris sure to appeal to girls while the ing sets inside, or the Smarties Egg Kitkat Chunky Grand Prix Champion Decorating Set, including an edible Egg has the added incentive of a decorating set that allows kids to use Grand Prix Championship PC game. their creativity to decorate their own Nestlé holds the number one valEaster eggs. ue share position within the chilThe Nestlé teen range has dren’s Easter egg sector. This year, favourites including Aero, Rolo, Kitkat the kids range has some exciting 34

Nestlé’s Smarties Egg Decorating Set, includes an edible decorating set that allows kids to decorate their own Easter eggs.

New Galaxy ‘All About Chocolate’ from Masterfoods: sure to entice Galaxy lovers to indulge themselves.

and Yorkie, which is the only brand aimed specifically at males. Premium eggs continue to be a growth area. The Black Magic Easter Egg has been reintroduced by popular demand and in response to the increased consumer interest in dark chocolate. The Quality Street and After Eight standard and premium eggs are also within Nestlé’s premium range.


RN Jan/Feb07Easter ●

Masterfoods’ Maltesers And Friends egg contains full size Maltesers x 2, Minstrels and Revels.

Masterfoods Following the successful launch in 2006 and the continued growth in the market, Masterfoods filled egg variants Mars and Galaxy are back for Easter ’07 in both single and three-

pack formats. With new packaging designs, these packs are guaranteed to give superb on-shelf standout and increased sales. The new Galaxy Mini Egg Gifting Pack completes Masterfoods’ filled/mini egg range for 2007. The Masterfoods adult egg range sees two new editions this year on the back of the significant growth in this category over the last number of years. Galaxy ‘All About Chocolate’ and Galaxy Minstrels Egg are sure to entice Galaxy lovers to indulge themselves. This, coupled with the fact that the Galaxy brand grew by

an amazing 8.5% last year (Source: ACNielsen, 8WE Sept. ’06), will ensure that sales of adult eggs are maximised. After a successful launch last year, the Mars And Friends egg returns, including full size Mars, Mars Delight, Twix and Snickers bars. In addition, the popular Maltesers And Friends egg also returns, containing full size Maltesers x 2, Minstrels and Revels. The ever popular Maltesers Crispy Egg completes the adult egg range for 2007. Masterfoods is also in a strong position to leverage the continuing growth of the luxury and premium egg market. The brand new packaging designs on their popular Galaxy and Galaxy Promises eggs, along with old favourites Maltesers and Celebrations, will ensure that consumers have all they need to indulge themselves this Easter.

Premier Foods’ Easter Desserts PREMIER Foods Ireland have Ireland’s largest brand portfolio of ambient desserts and the range is a must have this Easter for consumers. Chivers Jelly is no stranger to our shelves. As Ireland’s leading jelly brand with an estimated 80% market share, Chivers continues to be the number one choice for consumers. Easter would not be the same without Chivers Jelly, used in many traditional homemade desserts, trifles and cheesecakes, to name but a few. Chivers Jelly is fat free and available in six great flavours – Strawberry, Raspberry, Blackcurrant, Lemon, Lime and Orange. Premier Foods Ireland also distributes Bird’s desserts and the brand has continued to grow from strength to strength. In fact, recent consumer research indicated that Bird’s is still the number one custard brand favoured by Irish consumers. Bird’s Custard is the original custard brand and offers consumers the great taste of Bird’s in a range of formats from readyto-serve cartons and pots to the more traditional powder formats. Also within the range are Angel Delight toppings, Bird’s Trifle and Dream Topping. The Chivers tinned fruit range consists of Strawberries, Raspberries and Prunes. Re-launched in 2004, Chivers Strawberries are the star performer, achieving over 40% growth year on year. Chivers Strawberries don’t compromise on quality and insist on offering consumers a premium, sweet and succulent strawberry all year around. Fat free and free from artificial preservatives and flavourings, Chivers Strawberries are a quick and delicious dessert option.

Chivers Jelly is fat free and available in six great flavours – Strawberry, Raspberry, Blackcurrant, Lemon, Lime and Orange.

Bird’s Custard offers consumers the great taste of Bird’s in a range of formats.

35


RN Jan/Feb07Pasta & Pasta Sauce ●

Pasta Performance Ireland’s love affair with pasta dishes shows no signs of abating.

Knorr Ragu has recently re-launched with an exciting new look, new positioning and a new health claim.

Irish

consumers love pasta and continue to prepare pasta-based dishes in increasing numbers. Seen as the ideal time-saving meal solution, pasta-based meals are now mainstream dishes for the majority of the population. Indeed, the Irish pasta market grew by a massive 66% between 1999 and 2004. 2005 saw a 5% value growth over the previous year, with a particular upsurge in sales of chilled/fresh pasta. Pasta on its own is less than half the story, however, as the dynamic pasta sauce market continues to be a major success story in Irish supermarkets and convenience stores. Irish consumers have an insatiable appetite for new and exciting pasta sauces. While only a few years ago, you would be hard-pressed to find much variation from the typical Bolognese sauce, nowadays, Irish consumers are experimenting with Arrabiata, Carbonara and a variety of other sauce types, both traditional and contemporary. 36

Unilever

Masterfoods

Knorr Ragu has recently re-launched with an exciting new look, new positioning and a new health claim. Knorr Ragu is crammed full of more tomatoes than any other bolognese sauce. More tomatoes in Knorr Ragu means more lycopene. Lycopene is a naturally occurring anti-oxidant, which helps to protect your body’s cells, so Knorr Ragu has just got even healthier. Knorr Ragu is completely free from artificial flavours, colours and preservatives. Now Knorr Ragu stands out on the shelf with its new, iconic jar, that is both modern and eye-catching. There are seven delicious flavours to choose from. All Knorr Ragu sauces are so thick and chunky that consumers can have it with mince or try it on its own with pasta - it is incredibly versatile and incredibly tasty. Knorr Ragu has also launched a new look Lasagne Kit which is available on-shelf now. Knorr Ragu will be heavily supported in 2007, with a comprehensive above and below-the-line campaign.

Dolmio from Masterfoods claims market leadership of the Italian pasta sauce market, with a 61.4% share (Source: ACNeilsen Dec 2006) of the sector. Spaghetti Bolognese is by far the most popular Italian meal served in Ireland today. Not surprisingly, Dolmio Bolognese sauces are the core of the brand, with 70% of total Bolognese market share (Source: ACNeilsen Dec 2006). Dolmio Bolognese offers a wide range of sauces, to help consumers create a truly individual meal – from the much-loved Original and Light Bolognese recipe to ‘Extras’ and ‘Chunky’. The Dolmio Express range offers a meal solution of sauce and pasta that can be prepared in two minutes. It is ideal for those who don’t want to sacrifice on taste or nutrition. Dolmio Express is experiencing phenomenal growth by meeting a real consumer need for convenience. The My Dolmio range for kids was recently launched with outdoor, TV and radio support. The pouch range of


RN Jan/Feb07Pasta & Pasta Sauce ●

Dolmio Bolognese offers a wide range of sauces, to help consumers create a truly individual meal.

pasta and sauces offers busy parents nutritious, quick, and healthy light meal/snack options, with sauce varieties such as Meatball Bolognese, Pizza and Creamy Tomato, and Shell and Twists Pasta varieties that their kids are sure to enjoy. Lasagne is delivering 21% growth due to its easy, three-step preparation. Dolmio Lasagne claims a 67% share of the Lasagne market (Source: ACNeilsen Dec 2006) and the range includes a range of red and white lasagne sauces and lasagne sheets sold separately, as well as in the convenient meal-pack format: all the consumer needs to do is add mince and grated cheese. The Dolmio Stir-in range has continued to increase market share and offers a wide variety of intense flavours, from Creamy Carbonara to Sun-dried Tomato, easily prepared by simply stirring through cooked pasta, for those looking for convenience without compromising on taste. Dolmio has many activities planned for 2007, including the launch of an exciting new range, supported through a combination of above and below-the-line promotions, comprising television, outdoor and press advertising, in-store promotional activities, sampling and PR.

Shamrock Foods Roma prides itself on being the ‘catch all’ convenient Italian meals solutions provider for the Irish consumer. As Ireland’s top Italian ingredients

The Real Irish Food Company range includes three pasta sauces: Roasted Red Pepper & Garlic Sauce; Vine Tomato & Jalapeno; and Tomato & Fresh Basil.

brand, Roma is known for its high product quality and continuous innovation to meet the changing needs of Irish consumers. In 2006, Roma responded to the “time poor cash rich” phenomenon by launching five new Bolognese pasta sauces for those times when there’s simply not enough time to cook quality Italian meals from scratch. With convenience in mind, Roma also re-launched a “fresh new look” for their Boil- in-theBag range of rice and couscous. The Roma Bolognese pasta sauce range, The new packaging is more eyelaunched in 2006 in response to consumer catching and clearly communicates demand. the simplicity and ease of the ‘Boil in the Bag’ concept. absolutely no artificial colours, 2006 also saw the introduction of flavours or preservatives. six delicious new Antipasto products, The range includes three pasta a new Kidz pasta, a range of Stir Fry sauces, with consumers able to choose Oils and new 250ml convenience size from Roasted Red Pepper & Garlic Olive Oil and Extra Virgin Olive Oil. Sauce, Vine Tomato & Jalapeno (for that extra kick) and Tomato & Fresh Basil (the classic Italian). All sauces are Jacob Fruitfield Food extremely convenient, meaning that Group consumers can prepare a tasty meal in The Real Irish Food Company has a minutes. range of premium pasta sauces, relishAlso available in the range are es, dressings and preserves which have The Real Irish Food Company been recently launched into the Irish Relishes in two varieties: Roasted marketplace. The company is 100% Red Pepper Relish and Spiced Irish owned and the products are made Orchard Relish. These relishes are in the manufacturing facility in ideal as a dip, an accompaniment to Drogheda, Co. Louth and distributed cold meats or salads or simply as an by The Jacob Fruitfield Food Group. extra to liven up any dish, while the Only the finest quality ingredients range also includes a selection of are used to make The Real Irish Food dressings and jams. Company products and there are 37


RN Jan/Feb07Commercial Transport ●

Mercedes-Benz Sprinter Semperit Irish Van of the Year 2007 Ferdia O’Dowd, Chairman, Irish Motoring Writers Association; Paddy Murphy, Semperit Ireland; Model Katy French; Stephen Byrne, Chief Executive, Mercedes Benz; and Gerry McDonnell, Commercial Vehicle Sales; are pictured at the presentation of the Semperit Irish Van of the Year 2007 award to the winner – the new Mercedes-Benz Sprinter.

THE Mercedes-Benz Sprinter has been named the Semperit Irish Van of the Year 2007, as voted for by the Irish Motoring Writers Association last November. The Mercedes-Benz Sprinter, with 26 points, finished just ahead of the Ford Transit on 24 points and the Fiat Ducato on 19 points. Value-for-money, reliability, versatility and lasting residual value were among the attributes sought by the judging panel.

Presenting the award to Stephen Byrne, Chief Executive of MercedesBenz in Ireland, Paddy Murphy of Semperit Ireland commented: “The Sprinter has won the endorsement

of the Irish Motoring Writers. The Semperit Irish Van of the Year accolade will no doubt support its success in the commercial marketplace.”

Ford Tops Irish Van Sales For 2006 ALMOST 47,000 commercial vehicles (CVs) were sold in Ireland last year, making 2006 the best year yet for CV sales – that’s according to figures released by the Society of the Irish Motor Industry (SIMI). The figures also show that Ford is again the undisputed CV market leader, capturing more than 17% of all van sales to lead the way for a 17th consecutive record-breaking year. “The commercial vehicle market is a really good indicator of the overall strength of the economy,” says Ford Ireland Managing Director, Eddie Murphy. “On the basis of last year’s CV sales, we can see that ‘Ireland Inc.’ is in very good shape at the moment. The outlook for 2007 is also extremely positive, and I expect a full-year sales tally of close to 50,000 CVs, with at least 8,500 to 8,600 units for Ford. That would be very satisfying for us.” 38

Ford’s dominance of the CV market in 2006 was driven, as in previous years, by the multi-award-winning Ford Transit. The Transit, which last year benefited from a range of improvements and was voted 2007 International Van of the Year, was the overall best-selling commercial vehicle in Ireland. “The Ford Transit is a ubiquitous presence in Irish industry,” says Murphy. “It’s the driving force for countless businesses in this country, from self-employed tradespeople to

large state companies and construction firms that employ thousands of people. If there’s one vehicle that symbolises the strength and purpose of the Irish economy, it’s the Transit.” Ford also had two other 2006 bestsellers in both the car-derived van sector with the Ford Focus Van and the small van sector with the Ford Fiesta Van. Ford’s overall tally of 8,008 units sold in 2006 is a 17.4% increase over 2005 and represents the third year of consecutive double-digit growth in sales.

Commercial Vehicle Sales (light / medium / heavy) 2004-2006 Ford VW Toyota Nissan Renault Total industry

2004 5,996 3,393 3,461 2,624 1,912 34,075

2005 6,821 5,320 4,658 3,251 2,543 41,974

2006 8,008 5,821 5,051 4,283 3,080 46,857

(market share) (17.1%) (12.5%) (10.8%) (9.1%) (6.6%)



RN Jan/Feb07Commercial Transport ●

Citroen’s All New Relay Van CITROEN has long been a key player in the European light commercial vehicle market. By constantly matching its range to market trends, in 2005 Citroen secured a 10.2% share of the European light commercial vehicles (LCV) market, which includes 26 countries. LCVs are important for the marque, since one Citroën in every five sold worldwide is a light commercial vehicle and one light commercial in every 10 sold in Europe is a Citroen. The launch of the new Relay last summer gave the marque a further advantage in this segment. With the new Relay, Citroen is out to win market share, building on 12 years of market success with the previous version. The new range, which includes the latest high-tech features, is structured to meet these objectives. The redesigned architecture of the new Relay expands the number of combinations possible in terms of volume and payload. It features a wider choice of load volumes: the new Relay combines four lengths with three wheelbases and three body heights. The useful loading volume ranges between 8 and 17 cubic metres. In addition, it has a gross vehicle weight of up to four tonnes: the new Relay now tops the 3.5 tonne mark

with a maximum gross vehicle weight of 4 tonnes (for a payload of two tonnes). The new Relay is also one of the few frontwheel drive LCVs to have a gross vehicle weight of over 3.5 tonnes. This increased capacity in terms of payload gives Citroen access to new market segments. In addition, it offers a wide diversity of models to satisfy the requirements of each sector of activity. The range comprises standard panel and window vans, single and double cab versions, and combi vans for transporting people. Other versions are pre-prepared for bodywork conversions: chassis, bare chassis and platform cabs. The styling of the new Relay is user-focused. For example, the bumper features built-in steps that make it easier to clean the windscreen. At the same time, the layout of the driving position, its soundproofing and ergonomic design, ensure that the cabin satisfies the requirements of the most demanding professionals. The load height has

been lowered to make the loading area even easier to access. The new Relay features new diesel engines adapted to each version. The range is available with a choice of three engines, mated to manual gearboxes, two of which have six speeds. The new Relay boasts a broader range of equipment and a wide array of optional extras rarely seen on the LCV market, including a heat-reflecting windscreen, automatic lights and wipers and rear parking assistance with a colour camera. The new Relay has surefooted, precise road manners. Vehicle safety is further reinforced by ABS, fitted as standard and ESP, optional, depending on the versions.

Nissan Navara Wins Commercial SUV Award THE Nissan Navara has been named the inaugural ‘Semperit Commercial SUV of the Year 2007’ award. The Navara was the best-selling pick-up in Ireland and Europe in 2006. Its first full year of European sales came to a total of 45,200 units registered,

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commanding 25% of the European market for pick-ups. The Navara’s performance in Ireland has been staggering. In 2005, Nissan sold 92 Navaras after its launch late in the year. The Isuzu D-max dominated the segment with 471 sales (41.7% market share) with L200 being the nearest competitor with 14.2%. Last year, Nissan Ireland sold an amazing 914 Navaras to achieve 41.2% market share of a market that has almost doubled (1,129 to 2,221). The nearest competitor is the Isuzu D-max which nearly main-

tained their unit sales but now have a reduced 20.8% market share in the segment. The newly arrived Mitsubishi L200 is expected to have a great influence on the 2007 figures. By offering SUV levels of comfort, space and on-road dynamic performance, the Navara has given customers the option of owning a pick up which doesn’t compromise their daily lives. ”The success of Navara demonstrates Nissan’s leadership in the pick up segment in Europe. The combination of SUV qualities and pick up utility offered by the Navara has raised the stakes in this competitive segment,” notes Brian Carolin, Senior Vice President, Sales and Marketing, Nissan Europe.



RN Jan/Feb07Commercial Transport ●

New Fiat Ducato Focuses on Owners’s Needs THE new Fiat Ducato range is designed to reduce total running costs over the life of the vehicle for owners and to give drivers the levels of comfort and equipment found in a car. Fiat points to the front-end design as one proof of its focus on the needs of owners and operators. The front bumper is actually in three separate pieces, so in the event of a collision only the damaged section needs to be replaced, rather than the entire bumper. The front headlights, often prone to damage on other light commercials because of their vulnerable position, are located just below the windscreen, moving them above the area normally affected by light traffic shunts and improving night-time visibility for drivers.

The new Ducato offers four, latest generation, Common Rail direct-injection 16 valve turbodiesel engines (multipoint injection) with power outputs ranging from 100 to 157 bhp. The environmentally friendly engines (they comply with the Euro 4 directive) are combined with 5-speed transmissions or a new 6-speed transmission. It has been designed with safety as a top priority, and examples include a body with differential crumple zones, new braking systems with all-round disc brakes, the adoption of ABS anti-lock braking with EBD, and a driver’s airbag throughout the entire range. Versatile, sturdy and spacious, the

new range offers comfort and safety to make customers’ business easier. The Ducato is available in three formats – goods transport, people carrier and chassis/cab for conversions and body builders. It can be fitted with 15” and 16” wheels and tyres, with gross vehicle weights from 3 to 4 tonnes, delivering payloads from 1,000 to 2,000 kgs. Three wheelbases, four lengths and three height versions are available. Similarly, seven load compartments, with volumes ranging from 8 to 17 cubic metres, are available, while a chassis/cab range with four wheel bases and five lengths complete the Ducato offering.

New Compact Vans from Fiat, Peugeot & Citroen FIAT and PSA Peugeot Citroen have unveiled a new family of compact light commercial vehicles at the Sevel Nord plant in northern France. The newcomers succeed the Fiat Scudo, Peugeot Expert and Citroën Dispatch, and keep their respective names. These new compact light commercial vehicles are available in a broad range of body styles, with volumes of 5 to 7 cubic metres and payloads of 1,000 and 1,200 kg, allowing business users to select the right vehicle for their specific business needs. In addition, the two groups are extending their ranges with a new passenger vehicle offering, the combi-van, a van-based large MPV seating up to nine passengers. Nearly one million units of the previous generation Fiat Scudo, Peugeot Expert and Citroën Dispatch models, launched in 1995, have so far been produced at the Sevel Nord plant. These light commercial vehicles helped trigger a boom in the compact light commercial vehicle segment in Europe with their novel car-like driveability, an offering not previously available in the light commercial vehicle market. Following the renewal of their larger light commercial vehicle ranges: the Fiat Ducato, Citroën Relay and Peugeot Boxer, the two groups are continuing to rejuvenate their light commercial vehicle ranges. The next step in this market offensive will occur in 2008 with the launch of a small new van to be manufactured in Turkey. 42

New Ford Ranger Pick-up THE all-new Ford Ranger made its debut in Ireland a few months ago with an entry level price tag of €24,045. Ford says the all-new Ranger will deliver more style, more practicality, more durability and more comfort. The new Ranger features a tough and modern exterior design, a completely redesigned interior, increased loading and towing capacity, and an all important, totally new common-rail diesel engine. The Ranger’s most noticeable feature is the imposing new bonnet and large wide grille opening which dominate the front, while prominent wheel arches help protect the bodywork and emphasise the Ranger’s tougher look. The interior of the new Ranger has been completely redesigned, while Ford claims that the higher levels of refinement of the new TDCi engine deliver a significantly quieter cabin. A Variable Geometry Turbo (VGT) is employed to provide an earlier and broader torque delivery as well as reduced turbo lag. The transmission is the proven Durashift 5-speed manual transmission. The pick-up box side wall height has been increased by 60mm to provide what Ford say is class leading storage capacity.



RN Jan/Feb07Commercial Transport ●

More Power and New Look for Toyota Hiace

Volkswagen Crafter Makes Its Mark VOLKSWAGEN’S replacement for its successful LT model is the new Crafter, which completes the renewal of the entire Volkswagen light commercial vehicle range, following the Transporter and the Caddy. Four versions of Volkswagen’s fuel efficient, five cylinder TDI engine are available, delivering 89bhp, 109bhp, 136bhp and 164bhp. The new unit is now equipped with common rail fuel injection and a diesel particulate filter, combining durability, low fuel consumption and low emissions with a wide choice of power outputs. The Crafter is equipped with a 6speed manual gearbox as standard an automatic transmission is optional. The generously sized braking system has considerable reserve capacity, even at maximum vehicle weight. Optimised suspension gives the vehicle good cornering stability, and for additional safety, the Crafter is fitted with ESP and ABS as standard. The ergonomically designed cabin includes a driver’s airbag as standard, while front passenger, curtain and side airbags are available as options.

For added convenience, remote central locking and electric windows are also standard. A dash-mounted gearlever offers increased comfort, and also releases more cabin space. Continuing the space theme, provision has also been made for the storage of many items that van drivers often need to accommodate. A choice of three wheelbases, four load compartment lengths and three roof heights enhance the versatility of the new model. The Crafter has a maximum load capacity of 17 cubic metres and the five-tonne panel van can now transport a weight of approximately 2,670 kg. There is ample width inside the vehicle for two Euro pallets to stand next to each other, which is complemented by superior load compartment access. An optional transport safety system can be used to restrain loads. The Crafter has been designed to be visually more striking than its predecessor. Strong lines, vertical clear glass headlights and robust side protection strips characterise the modern design, giving the Crafter a distinctive appearance.

Renault Win at 2006 UK Fleet World Honours RENAULT performed well in the UK Fleet World Honours 2006, scoring a hattrick of awards with the Espace winning Best MPV, the Trafic winning Commercial Fleet World’s Best Medium Van for the fourth consecutive year, while Renault scooped the Safety Award for the second year in a row. Renault has the safest range of vehicles on the market today, according to Euro NCAP, and this confirms Renault’s 44

commitment and long standing policy of offering ‘The Safest Cars You Can Drive’, no matter what the budget or size of your vehicle. The number of cars from Renault that have reached the maximum Five Star rating in the crash tests, coupled with the continued progress and innovation made by Renault engineers, helped Renault take the award, according to George Emmerson, Chairman of the judging panel.

THE Toyota Hiace has an enviable reputation for reliability, economy and an easy driving style. The reliable image of the Hiace has been refreshed for 2007 with a new look for the front end and detail changes to the interior. Toyota has strengthened its profile as a versatile choice for the business user, offering even stronger performance and enhanced quality. The 2.5-litre D-4D engine has been re-engineered to deliver more power and torque, making the Hiace an even stronger market proposition. At the same time, fuel economy and emissions have also been improved. In addition, the new Hiace has a distinctive new look, thanks to a number of styling changes to the front end, quality touches for the interior and some key new options, including full-map satellite navigation and passenger front airbag. Toyota has upgraded the 2.5-litre D4D common rail diesel engine offered in the Hiace to give stronger performance, better fuel efficiency and improved emissions, with a choice of outputs to suit different customer needs.

The new model is marked out by a more powerful bonnet line and more prominent bumper and grille. The bold new headlights are larger than before and use a multi-reflector design. The position lamp and indicators are now housed within a single clear lens, giving a more contemporary look. Inside the cabin, the focus has been on increasing the quality of the driving environment with a new fourspoke steering wheel, giving a more car-like feel, and a silver finish to the central instrument cluster. The short wheelbase model is designed to offer enough space to carry two Euro pallets, having a load length of 2,335mm. On long wheelbase versions, this measurement increases to 2,780mm.


RN Jan/Feb07Commercial Transport ●

Ford Transit Named International Van of the Year 2007 THE new Ford Transit was awarded the ‘International Van of the Year 2007’ last September. The jury, which comprises an independent panel of leading commercial vehicle journalists representing 19 European countries, awarded the new Ford Transit the 2007 trophy in what was described as “one of the closest fought Van of the Year battles ever”. Speaking about the significance of the win for Ford’s business in Ireland, Eddie Murphy, MD of Ford in Ireland, said: “We are delighted with this win and we are sure that it will be a great

boost to our Transit sales across the country, confirming the van’s position as number one in Ireland. With more than 100,000 units sold in Ireland since its introduction in 1965, the Transit has been a first choice for Irish van drivers for many years. Our loyal Transit customer-base will find many improvements in the new award-winning Transit.” The jury said: “In announcing the decision, the jury was particularly impressed by the fact that Ford’s engineers have taken one of Europe’s best

vans and made it even better. Whether in city traffic or on motorways, the driveability of the Transit is excellent.” The jury also appreciated the fact that the Ford designers and engineers maintain permanent contacts with potential and existing purchasers in order to monitor constantly their wishes and needs. This resulted in the fact that in the new Transit the cab interior has been brought up to a level approaching that of a car. The philosophy is that vandrivers often spend more hours in their vehicles than car drivers.

Opel Astra Van Wins CDV Award OPEL’S all-new fifth generation Astra van is designed with the driver in mind, and it is the winner of the inaugural ‘Semperit Irish Car-Derived Van of the Year’ award, as voted by the Van of the Year jury of the Irish Motoring Writers Association. The newcomer has been designed and developed in the UK, where almost 10,000 Astra vans a year are sold, and has been designed from the ground up to be every inch the “Driver’s Van”. Based on the platform of the Astra estate, a car praised for its impressive

dynamics, stylish design and impressive load carrying ability, the new Astra van takes these elements of its design to even more practical levels. It retains the dynamic abilities and comfort of the car, but with even greater practicality. Its spacious load bay is completely flat, while a wide tailgate, plastic inner body mouldings and a smooth under-tray make loading a hassle-free experience. From behind the wheel, it feels little different than a car. It benefits from Opel’s award-winning range of engines and transmissions, is compact and agile to drive and is a lot more stylish than your average commercial vehicle. Although based on the structure of the five-door Astra estate, every component of the new Astra van has been reassessed or

redesigned so it’s purpose-built for commercial duties, while a great deal of attention has been paid to making the load bay as practical and usable as possible. The cabin shares the ergonomically-designed layout of the Astra car, and is designed to offer comfort and refinement levels that most van customers would never expect to find. The steering and chassis set-up comes into its own on twistier sections of road. Vauxhall has identified that a good number of Astra van drivers use their vans exactly as they would a car, and that Astra van’s compact dimensions make it ideal for tackling routes that some larger van drivers may choose to ignore. Not only is New Astra van easy to drive, but it’s also agile and, compared to most rivals, positively sporty – with the same rewarding chassis that has made the Astra car range such a hit. 45


RN Jan/Feb07Commercial Transport ●

Stylish New Peugeot Boxer PEUGEOT’S new Boxer van, which went on sale last month, heralds the renewal of its complete van range. Featuring enhanced road handling, flexibility, increased comfort, additional payloads and carrying capacities, the new Boxer gains a more stylish exterior than ever before and will retail in Ireland from €24,070 plus dealer delivery related charges, or ex-VAT from €17,178. Offering a payload carrying capacity of 1155Kg up to 1525Kg, the new Boxer is available in short, medium or long-wheel base, matched to standard or hi-roof body styles. The new Boxer’s robust design and imposing front bumper reinforce a sense of security and safety, whilst the low profile windscreen offers enhanced visibility. The cube-shape rear of the Boxer, functionally serves to guarantee a maximum load volume from 8 to 13 cubic metres. Inside the new Boxer, the cab is both practical and comfortable, packed with equipment normally found in passenger cars, while standard safety and comfort equipment in Ireland includes ABS, electronic brake force distribution, emergency brake assist, driver’s airbag, immobiliser, remote central locking, rear bulkhead, in-dash CD

player, a single sliding side door, adjustable driver’s seat, depth adjustable steering wheel, height adjustable front seat belts with pretensioners and force limiters, electric heated and adjustable door mirrors and electric front windows. The Boxer comes with two rear swing doors equipped with four locking points as standard, one of which is central. Both swing doors open to an angle of 96°; a retractable rod system allows this angle to be extended to 180°, or optionally to 270°, to facilitate increased access. To ensure any load is securely and safely transported, the ribbed floor is equipped with either eight or ten load securing eyelets depending on the vehicle length. The roof of the Boxer is equipped as standard with anchorage points for the fitment of a roof rack if required, able to support loads of between 150 and 200 kg according to the different vehicle lengths.

A comprehensive list of options is available, ranging from driver’s seats with inbuilt suspension or heating, automatic lights & wipers, fog lights, manual or climate control air-conditioning, second sliding side door, ESP, ASR (traction control), passenger airbag, side & curtain airbags, speed limiter, cruise control, rear parking aids (audible & rear camera), alarm and pneumatic suspension. Powered by a 2.2 HDi turbo diesel developing either 100bhp or 120bhp, the engine is matched to a 5 or 6-speed manual gearbox. The refreshed Peugeot light commercial range also includes a new 1.6 HDi Partner, a new 207 car-derived van and Expert van.

New Renault Trafic and Master Ranges WITH the launch of several new and revised competitors in recent months, Renault has revised both of its large vans, Trafic and Master. Among the changes to both products are the refreshed interiors and exterior styling, new optional equipment, plus a new range of Euro 4 engines ranging in power from 90hp to 150hp. The new Trafic range has a bold, modern and dynamic design. The redesigned front features one-piece head-

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lamp units with built-in indicators and a new radiator grille expressing the Renault visual identity. New lamp units at the rear of new Trafic enhance the vehicle’s appeal, and a new footplate makes for added practicality. The new Master also features a new, more robust radiator grille design, making a clearer statement of membership to the Renault vehicle range. The new bumper unit, with a 10% larger air inlet, to meet Euro 4 standards, can accommodate factory-fit foglamps. The changes are not just skin deep, as in line with the company’s objectives outlined in ‘Renault commitment 2009’, build quality also takes a major step forward too, with careful attention to fit and finish. Significant improvements have

been made in cabin quality for the new Trafic and Master, both of which also feature new upholstery and interior finish. In addition, there are new stowage facilities on new Master: two overhead parcel shelves with 5-litre capacity for notepads, clipboard, etc. and a two-litre cubby on the centre gearshift console.


RN Jan/Feb07Commercial Transport ●

Land Rover Discovery 3 Commercial SINCE the all-new Land Rover Discovery 3 was launched less than two years ago, it has received a host of awards from media and industry. Now, a whole new series of enhancements have been added for the 2007 model. Exclusively for the Irish market two new limited edition versions, estate and commercial, of Discovery 3 are available. The Discovery 3 already bristles with new technologies to aid driving but enhancements for 2007 include the option of a tyre pressure monitoring system for the first time; electric power lumbar support to the driver’s seat where ‘memory seats’ are specified; one-touch opening passenger window; a “destination input on the move” function on the navigation system and a premium navigation system with the option of hybrid television, capable of receiving both analogue and digital TV signals. In addition, thanks to an improve-

ment in fuel consumption and a reduction in CO2 emissions by up to 5g/km, EU4 emissions compliance is achieved across the Discovery 3 TDV6 range. Discovery 3 offers a choice of an advanced 2.7 litre TDV6 common-rail diesel developing 190hp, or a refined 4.4 litre 295hp V8 petrol engine. It offers class-leading breadth of capability, innovative user-friendly technology, distinctive design and a spacious interior that can comfortably accommodate up to seven adults. Two limited editions of Discovery 3 will be available exclusively in the Irish market. The Discovery 3 Estate Limited Edition is based on the ‘s+” specification with added extras; 18” Alloy Wheels, seven seat pack, leather seats, cruise control, electronic air suspension with Terrain Response™, trip computer and

Top Tips for Winter Driving 1.

Always park your vehicle downhill and in the direction you want to travel the next morning. 2. Always accelerate gently when starting the vehicle and with a manual car use the highest gear at which you can move without stalling (usually 2nd gear). 3. Always engage the clutch before starting the engine of your vehicle. 4. Ensure that the engine on your vehicle has warmed up before setting off. 5. If possible, do not use the handbrake when your vehicle is stationary or parked. If this is not possible, do not pull the handbrake up fully in case it freezes in position. 6. If your vehicle starts to skid Do Not hit the brakes. Ease off the accelerator and steer into the direction of the skid until you gain control. 7. When your vehicle is parked, ensure the front and back windscreen wipers are away from the windscreen. 8. Be prepared - always plan your journey and check weather forecasts. 9. Always have a good amount of petrol in the vehicle and ensure you have an emergency pack with warm clothing and refreshments. 10. Before the winter, you should check or have your tyres (including the spare), brakes, wipers, heater/ air-conditioning and battery and check your tyre pressures regularly.

bright pack (which includes front fog lights, automatic headlights, headlamp power wash, rain sensitive automatic wipers, self-dimming electro-chromic interior mirror and puddle and footwell lights). It is available from €62,550 including VAT (but excluding delivery and metallic paint). The Discovery 3 Commercial Limited Edition is also based on the ‘s” specification and comes with 18” Alloy Wheels, Tow Pack and Roof Rails. From €39,200 including VAT (excluding Delivery and Metallic Paint). A variant is also available which includes all of the above plus Electronic Air Suspension with Terrain Response™, Trip Computer and Bright Pack. From €41,110 including VAT (but excluding delivery and metallic paint).

About the Author PADRAIC Deane, one of Ireland’s top motoring journalists, has been writing the annual RETAIL NEWS commercial transport report for 10 years. He is managing editor/ publisher at Automotive Publications, which includes titles such as the Motorshow Car Buyers Guide Annual and the Auto Trade Journal. He also writes weekly a consumer motoring column in many regional newspapers. Padraic is the Irish juror for the International Engine of the Year award and outgoing Chairman of the Irish Motoring Writers Association, where he adjudicates on the Semperit Irish Car of the Year and the Irish Van of the Year Awards.

47


RN Jan/Feb07Cheese ●

The Dairy Best The cheese market is extremely valuable, and enjoys phenomenal household penetration of over 95%.

The

Irish cheese market has diversified greatly in recent times. Just a few short years ago, you would be hard-pressed to find much variation from the traditional ‘Cheddar’ on convenience store shelves but today, the range and variety of cheese and cheese snacks available is incredible. The growth in cheese snacks, in particular, has been phenomenal, and not just in terms of products aimed at children. The adult cheese snacks sector is blossoming and the good news for retailers is that these are, in general, high value products, offering significant margins. Overall, the Irish dairy industry produces more than 119,000 tonnes of cheese each year. The main growth sectors include natural slices, grated, processed snacks and imported speciality. The speciality cheese sector in particular continues to grow, with consumers experimenting with a variety of cheese types across the soft, semisoft and hard cheese sectors. The good news is that not all speciality cheeses are imported, with Irish farmhouse

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Low Low Chunky Triangles: deliciously smooth and creamy.

Low Low Freshly Grated Mozzarella & Red Cheese: proving extremely popular with Irish consumers.

cheese more than holding its own against continental products. There are now more than 55 speciality cheese manufacturers in Ireland, and researchers at Moorepark Food Research Centre, Teagasc, are starting a new programme of work to support the quality and safety of Irish farmhouse cheeses.

Kerry Foods Low Low’s success in dairy spreads continues in the cheese category with Low Low cheese doubling its market share in the last three years. Low Low Creamy & Light Cheddar is available in block, grated & sliced, along with deliciously smooth & creamy Low Low Chunky Triangles & Low Low Cheese Spreads.

The Charleville brand will be supported above the line throughout the year.

The Low Low brand has been recently extended to include the tasty Low Low Emmental slices along with Low Low Toastie Slices and Low Low Burger Slices, giving consumers the perfect melt every time. Low Low cheese will continue to be heavily supported in 2007 with dedicated TV advertising. Charleville claims leadership of the natural cheese sector and continues to drive growth in this market, according to Kerry Group. Claiming a share of 19% and growing at 11%, Charleville’s vast range and consistently strong support package have guaranteed its success to date. Charleville boasts a large portfolio of products, including a significant natural block, sliced and grated range, as


RN Jan/Feb07Cheese ●

well as a continental range of Emmental, Gouda and Edam, to ensure there is an offering for everybody and for all occasions. The Charleville brand will be supported above the line throughout the year. EasiSingles is the brand leader in the cheese slices market in Ireland, according to Kerry. With a share of 29% (Source: ACNielsen, 24th December 2006), it is a firm favourite with Irish families. Available in a range of original and light slices as well as triangles, EasiSingles is ideal for snacking and sandwiches, burgers and toasties. Healthy snacking is even more on consumers’ minds these days and Kerry Foods’ leading Cheestrings brand continues to go from strength to strength, with sales up 8% in the Irish market over last year. A new TV advert for Cheestrings titled ‘Cheestrings Just Gotta’ shows how kids who’ve “just gotta play” love Cheestrings. This advert is the start of a €500,000 campaign in Ireland which, as well as TV advertising, covers press advertising and an on-pack promotion, as well as the launch of new pack sizes and varieties of Cheestrings throughout the year. Kerry Foods’ Brunchettas brand is enjoying early success in the new adult cheese snacks sector in Ireland and is returning to TV screens with sponsorhip of a new series of the award winning Charlotte Church Show - perfectly matched to the brand’s female target market.

Charleville claims leadership of the natural cheese sector and continues to drive growth in this market.

The Charleville portfolio includes a continental range of Emmental, Gouda and Edam.

Charleville Freshly Grated Select Cheddar: a popular choice.

Glanbia Consumer Foods

EasiSingles from Kerry Foods: a firm favourite with Irish families.

Glanbia Consumer Foods continues to develop the natural cheese market by bringing together tradition and innovation. Its award-winning cheese brands Kilmeaden and Avonmore, enduring favourites with Irish consumers, continue to lead their respective sectors, Kilmeaden as the number one natural block cheese and Avonmore in natural grated cheeses. Renowned as the ’fillet of cheese’, Kilmeaden earns its reputation through its consistent high quality and traditional craftsmanship in the cheese sector, as well as its distinctive packaging. These attributes were

The Cheestrings brand from Kerry Foods continues to go from strength to strength.

Kerry Foods’ Brunchettas brand is enjoying early success in the new adult cheese snacks sector. 49


RN Jan/Feb07Cheese ●

acknowledged again recently with another Gold Medal award at the World Cheese Awards. Recent new products added to the Kilmeaden range are Natural Farmhouse Blocks and Fused Slices. These quality products join Kilmeaden’s Mature Red and White, Creamy & Smooth, Fully Mature Red and White, Vintage Red and White and Thick Cut Red and White Slices. Further additions to meet the changing requirements of consumers are planned. The range has also moved to fixed weight measurement contained in an easy-open re-sealable pack to reflect modern consumer preferences. The packs reflect the tradition of Kilmeaden, with muted, natural earthy tones and featuring a cheese grader to illustrate the long-established cheese-making skills still used today. Avonmore provides the total cheese solution for the Irish consumer, with a range of blocks, grated, slices and speciality options. The latest additions to the Avonmore range are Continental Grated cheese and the unique Avonmore Mini-Grated range. The successful launch of these new products is attributed to the fact that they meet prevailing consumer health and nutrition trends, with an emphasis on convenience, product quality and portion control. The Avonmore range also includes Breaded Snacks, which have attracted attention on the shelves with new redesigned packaging. Avonmore Breaded Snacks combine continental cheeses with complementary sauces and dips. The range – Camembert, Mini Camembert and Mozzarella sticks – responds to the Irish consumer’s growing interest in ‘cheese experimentation’ and demand for convenient snack options. These initiatives reflect the brand’s drive for innovation and re-enforce its position as the joint market leading natural grated cheese. Some very exciting developments are planned for the Avonmore brand in 2007 including the launch of the Avonmore Cheddar Fun range, a range of Kids 100% Natural Cheese Snacks. 50

Kilmeaden from Glanbia earns its reputation through its consistent high quality and traditional craftsmanship in the cheese sector, as well as its distinctive packaging.

Avonmore Breaded Snacks combine continental cheeses with complementary sauces and dips.

The unique Avonmore Mini-Grated range: one of the latest additions to the Avonmore portfolio.

Avonmore Mini Grated Cheddar & Mozzarella Cheese, providing extra choice for consumers.


RN Jan/Feb07Cheese ●

Horgan’s Delicatessen Supplies Horgan’s Delicatessen Supplies are specialists and innovators in the sales, marketing and distribution of chilled food products. The company has been a leading supplier of speciality foods to supermarkets, independent retailers, speciality food stores and the food services sector in the Republic of Ireland and Northern Ireland since 1977. Horgan’s Delicatessen Supplies works closely with a global panel of large and small producers to bring the finest foods to the market, while

ensuring that the highest quality and safety criteria are met. The extensive product portfolio ranges from Irish farmhouse and continental cheeses to speciality cooked and fermented meats, pate, salami, antipasto and fresh pasta. Foods are sourced throughout Europe and from Ireland, with frequent visits to international food fairs and constant monitoring of consumer trends in order to ensure that the product range is both comprehensive and relevant. Horgan’s Delicatessen Supplies brand portfolio includes the President range, the Castelli range, Boursin, The Laughing

Delicatessen Supplies. Expertise ranges from monitoring up-to-date primary and third party research and knowledge of consumer trends/market needs, to sourcing of top quality produce utilising market intelligence, supported by participation in international food fairs. Their continuous policy of generating new ideas and marketing innovations is easily demonstrated with examples such as the introduction of the Pick’n’Mix concept for speciality cheeses in retail outlets. This service offers retailers an extensive range of mini-portion packs of cheeses, allowing customers to try different types of cheeses without waste and which are designed for a variety of instore refrigerated locations. The development by Horgan’s Delicatessen Supplies of the facility to freshly cut cheeses, combined with concept packaging, provides a range of over 150 cheeses to suit the requirements of any retail deli-counter, whatever its size.

Cheesy Does It!

Boursin, one of the popular speciality cheeses from Horgan’s Delicatessen Supplies.

Cow, Mini Babybel, Cheez Dippers and Cambozola. The first truly low-fat portion, The Laughing Cow Extra Light offers “all the taste but none of the waist” - all the goodness and creamy cheese taste that cheese fans have come to expect from The Laughing Cow, yet with only 3% fat. The Laughing Cow claims the number one position in the Irish processed cheese portions market with a 69% value share (Source: ACNielsen MAT Dec 24/06). The brand has ongoing support above the line with TV advertising, as well as ongoing trade promotions. The new ‘devil’ press creative will certainly reinforce the brand’s position as the truly low fat cheese. The Laughing Cow Extra Light offers all Trade customers are supported by the goodness and creamy cheese taste their sales and marketing team, as that cheese fans have come to expect from well as their telesales team. Marketing The Laughing Cow, yet with only 3% fat. is an everyday art at Horgan’s

• Cheese is bought by over 96% of Irish households. • Cheese is a concentrated form of milk. It takes 10 litres of milk to make one kilogram of Cheddar. • A small matchbox sized piece of Cheddar (30 grams) contains about 30% of the recommended daily calcium intake for adults; it also contains valuable quantities of protein, vitamins and other minerals, 10.5 grams of fat and only 125 calories. • Coloured cheeses like Red Leicester, Double Gloucester and coloured Cheddar and Cheshire get their red colouring from Annatto, a flavourless vegetable extract from the seed of a South American tree. • Cheese can be made from all sorts of milk – not only cows’ milk but also sheep, goat, buffalo and yak milks. • Eating a piece of cheese after sugary snacks and after meals can help remineralise tooth enamel and protect against tooth decay. • The making of cheese dates back more than 4,000 years.

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RN Jan/Feb07Money Matters â—?

Buying a Business Carmel Linnane advises on what factors to take into account if you are considering a takeover of an existing business. “In general, you will have a much easier time securing capital from lenders by taking over an established business. As far as the financiers are concerned, your level of risk is dramatically reduced because the company will have proven revenue and a customer base already established.� 52

Not

everyone wants to go to the trouble of building up a business from scratch. Big companies, more often than not, will target other established companies for takeover rather than wasting time and energy trying to build one up from the ground. They may be investing in new sectors and are buying in the expertise and a customer base they desire or simply trying to grow their size quickly in their own sectors. Either way, by buying into an existing business, they are dramatically reducing their risks as they know, to a large extent, what they are getting into. There are obvious advantages to buying into an existing business. First, there are no set-up costs. Second, the risks associated with starting a totally new venture are absent. Thirdly, the financial health and profitability is apparent in the management accounts. Fourthly, the company will have already established a customer base and the business flow should be quantifiable. Because of these factors, it should be far easier to get finance to pay for the purchase.

Start-Ups When starting a new business, every aspect of the business is unknown. You can set out a business plan and

make an educated guess at your future. You can target a market, estimate how many employees you may need, how much working capital you will require and how long it will take to reach profitability. But no matter how detailed your research, you still cannot be sure that your venture will succeed. There are so many unknown variables that could thwart your best efforts. It is for all these reasons that financiers are not jumping up and down trying to give you money for your start-up. It is estimated that less than 10% of all start-up businesses manage to convince the financiers that their venture is a sound bet. The vast majority do not succeed in securing the financing they require. Financiers are justifiably reticent as statistics estimate some 60% of start-up businesses fail within the first three years of life. And even those that succeed will have to wait a few years before they reach profitability.

Maturity This is why some people prefer to buy into an existing business. By doing so, you will dramatically reduce your risk of failure as the business has survived its genesis and is up and running. It is also likely to be a positive cash generator from day one. There are some


RN Jan/Feb07Money Matters ●

exceptions, where the entrepreneur will deliberately buy a failing business in the hopes of turning it around and will have allowed for years of being in the red in the business plan. In general, unless you are buying a pig in a poke, you will have a much easier time securing capital from lenders by taking over an established business. As far as the financiers are concerned, your level of risk is dramatically reduced because the company will have proven revenue and an all important customer base already established.

Knowledge An established business will also have an experienced management team with proven processes and systems in place. You will also be able to tap into the combined knowledge of the employees and knowledge is invaluable. Even if the company was not profitable in the past, you may be able to bring new strengths to the venture to maximise its potential, turning it into a viable company. You will have the hindsight of what the company did in the past and can decide what is working and what should be changed.

Rules Whether you are going with a start-up or buying an established business, some ground rules always apply. The primary rule is ‘do your research well’. In the case of an established business, ask yourself a few questions before you start. • What are your motives? • Why are you interested in this particular business? • Does it form part of your existing strategy for expansion? • Are you expanding your own business or branching out in a new direction? • Have you any knowledge of this sector? • Are the synergies with your existing business? • What will it mean in terms of profitability? • Where do you want to be in five years’ time?

If you are happy with your reasons for buying this business, then the next thing to do is examine the package you are buying into. You need to do a thorough investigation of the company’s historical performance, its operations, current status, the staff and management, competition, the industry and its future potential. Make a checklist of questions such as: • What exactly is included in this sale? • Are you buying the business lock, stock and barrel? • Are you buying its trade and goodwill? • Are key employees staying with the business post-acquisition? • Will you have a crossover period with the old management to bed things down?

“Whether you are going with a start-up or buying an established business, some ground rules always apply. The primary rule is ‘do your research well’.” Get a professional valuation of the business early on. This will involve a valuation of the business itself, including economic factors, people issues, pension commitments, future opportunities and detailed due diligence. You will need the experts to list the price, terms, and conditions for both the vendor and buyer. A concise version of this is usually covered in what is called a ‘Heads of Agreement’ document.

It is often more cost-effective to bring in specific expertise before the letter-of-intent stage is reached. In fact, many acquisition experts believe that it is important to put your ‘expert teams’ together early: to seek the advice and guidance of business finance experts, solicitors and your accountant before you begin your search for an acquisition target. These people should be well used to the demands and pitfalls of putting such deals together, whereas you may lack experience in this regard. Patience is a necessary virtue. Buying an existing business is a long and protracted manoeuvre. It can take anything from three to six months to sort out the minutiae and more complicated takeovers could take years to tease out.

Finance Because the business concept, customer base, and other fundamental work has already been done, the financial costs of acquiring an existing business are going to reflect this. You pay for what you get and the better the business, the more expensive it will be. However, you have something solid to show financiers and that helps a lot. There are many positives to buying an established business but there are also negatives. Firstly, it is a longwinded process and requires a lot of searching for the right fit. You will incur significant costs in terms of consultants, solicitors, accountants and valuation specialists. There is also an additional negative in that many acquired businesses lose 5-10% of their customers in the first year after a sale. So it will be up to you to hit the ground running once you take on this new venture to insure you keep your custom during the transition stage. With the best advice in the world, there is still no guarantee of success. But good research, careful planning and following the advice of experts at least reduce your margin for error. Knowledge is the key. Know what you are taking on. Know its market and get your new staff on board quickly. Plan your future carefully and leave as little as possible to chance.

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RN Jan/Feb07On The Vine ●

National Off Licence Awards 2007 Jean Smullen looks at the big winners in the recent NOffLA Awards.

There

was a huge turnout by the owners and staff of the independent off licence sector at the Diageo-sponsored NOffLA Awards. The competition was originally set up to encourage NOffLA members to improve their approach to retailing alcoholic beverages by encouraging better trained staff and also to make the independent off licences more competitive in the marketplace by improving the standard of specialist service on offer to the customer. These awards, which were initiated by NOffLA 11 years ago, have certainly achieved their objective. If the 25 finalists attending the black tie dinner at the RDS Members Bar are anything to go by, the standard of this competition is now extremely high. Gary O’Donovan was there with representatives from six of his Cork shops. The O’Donovan Group now has 14 shops in the greater Cork area and this year, six of them made it to the final, no mean achievement! Anne

Aidan O’Neill and Cathal McHugh of McHugh’s Off Licence, Kilbarrick Road, Dublin, are pictured receiving the award for Off Licence of the Year at the Diageo/National Off Licence Awards 2007 from Reggie Walsh, NOffLA, and Tom Fleming, Diageo.

Marie Holland from Holland’s Fine Wines in Bray walked away with the Leinster Regional Prize. This was the first time that Anne Marie entered the competition and while the prize for best first time entrant went to O’Donovan’s in Mallow, the regional prize was more than compensation for her.

Julie Cullen from Jus de Vine, Portmarnock, Co. Dublin, is pictured receiving the Specialist Wine Award from Diageo’s Tom Fleming and Reggie Walsh of NOffLA.

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Many other familiar faces from the NOffLA family were present, including Richie Barry and his father Bill from Uncorked in Rathfarnham; the Gibneys from Malahide; Evelyn Jones (Vice Chairperson of NOffLA) from The Vintry in Rathgar; the Redmonds from Ranelagh; Tom Deveney and his daughter; Damien Sherlock from Donnybrook Fair; Julie Cullen from Jus de Vine in Portmarnock; and Catherine Griffith from the Molloy Group, to name but a few. Judging for the competition, which is held annually, commences in July each year. NOffLA have 330 members countrywide and the competition is open to them all. The competition is judged by three independent judges, which this year comprised Martin Molony, Fiona Keane and John Wilson. The final test, the blind tasting challenge, was overseen by Lynne Coyle, the new Wine Manager of Gilbeys Wines. NOffLA as an association has a


RN Jan/Feb07On The Vine ●

Frank Haughton from McHugh’s Off Licence, Malahide Road, Dublin 5, is pictured receiving the Specialist Beer Award from Diageo’s Tom Fleming and Reggie Walsh of NOffLA.

Paddy Cullen of O’Donovan’s Off Licence, Market Square, Mallow, Co. Cork, is pictured receiving the Best First Time Entrant Award from Tom Fleming, Diageo, and Reggie Walsh of NOffLA.

very strong voice within the industry and are keen to emphasise their policy of responsible trading as a practical means of tackling issues such as underage drinking and secondary purchasing. Speaking at the dinner, Jim McCabe, Chairman of NOffLA drew attention to this. He highlighted the association’s programme, which

encourages Responsible Trading in the Community by offering mandatory training in this field to all new members. He told those gathered that the Government’s failure to exclude alcohol when the ban on below cost selling was introduced was grossly irresponsible. “Alcohol should have been exclud-

ed when the Groceries Order was rescinded in early 2006,” he argued. “The failure to do so resulted in an all-out cut price war between the major multiples and discount stores in the pre-Christmas period.” He told those present that NOffLA is leading the way by striving to tackle alcohol abuse in a realistic manner but that the Government’s failure on this issue resulted in a flood of cheap alcohol on the Irish market in the lead-up to Christmas as the large international chains sought to win market share. “That the Govermnent, who constantly highlight the need to tackle alcohol abuse in Ireland, created an environment that facilitated a drinks price war, was nothing short of hypocritical,” he concluded. The 2007 Off Licence of the Year Award had an element of ‘Groundhog Day’ about it, with Cathal McHugh of McHugh’s Off Licence in Kilbarrack Road, Dublin 5, stepping up to the podium to accept the coveted prize from Diageo’s Tom Fleming and NOffLA ‘s administrator, Reggie Walsh, for the second year in a row. In addition to the overall winner, four Regional Awards were presented as follows: CONNAUGHT/ULSTER REGIONAL WINNER Dicey’s Bottle Store, Ballyshannon, Co Donegal. MUNSTER REGIONAL WINNER World Wide Wines, Waterford. LEINSTER REGIONAL WINNER Holland’s Fine Wines, Bray, Co. Wicklow. DUBLIN REGIONAL WINNER Gibneys Off Licence, Malahide, Co. Dublin.

Ruth Deveney from Deveney’s Off Licence, Dundrum, Co. Wicklow, receives the Specialist Spirits Award from Diageo’s Tom Fleming and Reggie Walsh of NOffLA.

Three specialist awards were also presented; Spirits Specialist Prize went to Deveney’s Off Licence in Dundrum; Specialist Beer Prize to McHugh’s Off Licence, Malahide Road, Dublin 5; while the Wine Specialist Prize went to Jus de Vine in Portmarnock.

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RN Jan/Feb07On The Vine ●

NEW ZEALAND WINE FAIR IT is now 10 years since New Zealand Wine first arrived in Ireland to promote their wines at the Coach House in Dublin Castle and the wines and the market for them in Ireland have come a long way since then. The successful 2006 vintage comes at a time when the future looks extremely bright for New Zealand in Ireland. Figures to August 2006 show that 1.15 million litres were exported to Ireland in 2006 compared to 725,000 litres in previous year, an impressive 59.5% increase. Ireland now represents 1.9% of New Zealand's exports (1.4% in 2005) an increase of 35.7%. No other country is seeing such high export growth of New Zealand Wines. Exports to Ireland are now worth €5.77 million. 2006 has set new records for the wine industry in New Zealand, with a grape harvest of 185,000 tonnes, which represents an 11% increase. Both the grape growers and wine makers said they are very pleased with the 2006 vintage. The size and quality of the harvest is due to good summer and autumn weather. Despite the increased harvest, demand continues to outstrip supply for quality New Zealand wines in key markets such as the USA, UK and Ireland. This year's trade tasting, which took place in the Stillorgan Park Hotel on January 10, was a huge success with an impressive turnout from the off-trade, with staff from the key off licences present. A crew from TV3, the New Zealand National TV station, were also on hand to record the event for a news item, evidence of the importance of the Irish market to the New Zealand economy. We asked some of the trade to comment about the event and the overview was extremely positive for New Zealand Wines. David Whelehan, O’Brien’s Wine Off Licence Group Buyer/Marketing Manager told RETAIL NEWS, “New Zealand wine is on the up-and-up in Ireland. There is just an insatiable demand, especially for Sauvignon Blanc and Pinot Noir from Martinborough and Marlborough. This tasting is exemplary and attracts the highest level of wine trade. It is a brilliant start for the year and is a benchmark gathering.” This was re-iterated by Cathal McHugh, winner of this year's NOffLA Off Licence of the Year Award. Cathal noted that “Sauvignon Blanc in particular has been excellent and has stood out for years: this is continuing. We need to build customer perception of Pinot Noir and Riesling. At present, the perception of Riesling is the Germanic style and something needs to be done to educate, possibly the use of a shelf-talker. I have always loved NZ Pinot Noir so this is a favourite for me today.” In addition to the trade show, a seminar highlighting New Zealand Syrah and a selection of blended reds was well attended. The objective was to demonstrate New Zealand’s growing success within these varieties, highlighting regional diversity and stylistic differences. The event ended with a consumer tasting, which was attended by 250 consumers that evening. Participating wineries at the 2007 Dublin Fair included: Ata Rangi Vineyards; Babich Wines; Bridge Pa Vineyards; Cable Bay Vineyards; Clayridge Vineyards; Clifford Bay Estate; Cloudy Bay; Cottesbrook; Cottier Estate; Craggy Range; Desert Heart; Dry Gully Vineyard; Esk Valley Estate; Fairfield; Flying Kiwi; Hunter's Wines; Jackson Estate; Julicher Wines, Kahurangi Estate; Kim Crawford Wines; Lawson's Dry Hills Wines; Lazy Daze; Lincoln Vineyards; Lindauer; Matua Valley Wines; Maven Wines; Mission Estate; Montana Wines; Mount Vernon; Mud House Vineyard; Mystery Creek Wines; Neudorf Vineyards; Nobilo Wine Group; Old Coach Road; Omaka Springs Estates; Oyster Bay; Palliser Estate; Riversdale; Saint Claire Estate; Schubert Wines; Siefried Estate; Sileni Estate; Spy Valley; Stoneburn; Stoneleight; Tarras Vinyeards; Te Mania Wines; Terrace Heights Estate; Terrace Road; The Delta Wine Co; Tinpot Hut; Tussock; Villa Maria Estate; Vinoptima Estate; Wairpara Hill Wine Estates; Whale Bay; Wild Earth; Wild Rock; Winegrowers of ARA; Wither Hills; Wooing Tree Vineyard and Wollaston Estates. For more information about New Zealand Wines go to www.nzwines.com

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Wine News ICEP Portuguese Trade & Tourism have announced the winners of their recent trade/consumer competition which ran in association with their wine fair that took place in October 2006. Participating off licences had to prominently display Portuguese wines and encourage sales of the consumer tickets prior to the show. Three winners were announced: Donnybrook Fair (Holiday to Madeira with Panorama); On the Grapevine, Dalkey (Holiday to Algarve from Topflight); and Hollands Off Licence in Bray (Holiday to Algarve with Sunworld). Meanwhile, Kevin O’Hara of Grace Campbell wines won the Portuguese Wine Importer of the Year prize. COOKS Academy is expanding its course programme to include Wine Appreciation. A six-week evening course starts on February 19 and again on April 18, organised and accredited by the Wine Board of Ireland. The course is all about the fun and enjoyment of wine, in addition to learning the basics in a relaxed and sociable environment. There is no examination. The course fee of €235 includes book, samples, tuition, ISO tasting glasses and wine bag. On completing the course, students will receive a WBI Certificate of Attendance. For further information visit www.CooksAcademy.com or contact the Wine Board of Ireland on Tel: (01) 4757580. FORTHCOMING wine fairs in March include Italy (March 5) in the Hilton Dublin Hotel in Charlemont Place; Wines of California Tasting (March 12) in the Coach House, Dublin Castle; and the Chilean Wine Fair (March 22) at the Hilton Hotel in Dublin. To check out diary dates or to contact the organisers go to www.jeansmullen.com for more information.


RN Jan/Feb07Update ●

New MD at Robert Roberts Limited Pat The Baker Sponsors Ladies Gaelic Football PAT The Baker has announced a major three year, 32 county sponsorship deal with the Ladies Gaelic Football Association. The Post Primary Schools competitions at Senior A, B and C levels and the Junior A, B and C competitions will all be sponsored by Pat The Baker, taking immediate effect. This is a major boost for the Ladies Gaelic Football Association and another sign of the growth and development of the sport. Pictured at the announcement are Geraldine Giles, President of the Ladies Gaelic Football Association and Declan Fitzgerald from Pat the Baker, with comedian John Kenny and some of the country’s up-and-coming ladies Gaelic footballers.

TOM Gray has been appointed Managing Director of Robert Roberts Limited. Until recently, Tom was Finance Director of DCC’s Food & Beverage Division. This appointment came into effect on January 1, 2007. Tom is replacing Ken Peare, who is retiring after 32 years with the company. Ken will continue his long and valued association with Robert Roberts as non-executive Deputy Chairman.

Bia Kid Wins Tesco Contract Sellotape Wraps Up €12,000 Donation

DUBLIN-based Bia Kid has agreed a deal with Tesco Ireland that will see their products sold throughout all of Tesco’s 94 stores. The deal will double Bia Kid’s turnover and expand its marketing capabilities, as well as generating additional jobs at its Waterford production facility. Pictured are Yvonne Scully, Managing Director, Bia Kid; and Dave Connolly, Food Buyer, Tesco Ireland.

MORE than 200 volunteers helped raise over €12,000 at the first ever Christmas Gift Wrapping Shop in Stephen's Green Shopping Centre, supported by Sellotape and 98FM. The service was available right through December, with volunteers giving up a few hours to wrap gifts in return for a voluntary donation. All proceeds will go towards the work of the National Childrens' Hospital in Tallaght.

Musgrave’s Midas Touch MUSGRAVE Cash and Carry NI has won a gold medal for wholesale service to caterers at the FWD (Federation of Wholesale Distributors) Annual Gold Medal Awards in London. The award was recognition for Musgrave who were noted for bringing new levels of innovation and service to their growing base of customers and can be seen as due recognition from their peers in the wholesale distributors industry. Frank Coghlan, Managing Director of Wholesale Services, noted, “We are delighted at winning this award and I take it as a testament to the hard work of so many of our loyal staff. I believe it will help us strive to continue to better ourselves and develop initiatives such as our new Ballymun Market Street throughout Ireland over the coming years.” 57


RN Jan/Feb07What’s New ●

Cadbury Dairy Milk Moments BUILDING on the continuing growth of the Cadbury Dairy Milk brand, which is worth €45m and growing at +7.4%, Cadbury are introducing a new pieces format, Dairy Milk Moments. The perfect on-the-go offering for people with busy lifestyles who fancy a treat, Dairy Milk Moments will be supported by an extensive campaign of on-street sampling, outdoor and press advertising, designed to generate both awareness and trial. It will also benefit from the heavyweight TV advertising planned for the Cadbury Dairy Milk brand. The product will be available in both a hod and display outer to ensure ease of merchandising. Retailing at just €0.69, it’s sure to be a real success with consumers.

Tiger Beer’s Golden Buddha

Deep RiverRock Detox Campaign DEEP RiverRock have developed their own distinctive ‘Detox’ campaign, exclusive to the brand. Look out for their new uniquely designed 2x2L shrinkwrapped livery in-store. Lifestyle imagery helps bring the packs to life, clear panels communicate water purity and bright colours give them strong shelf stand-out. A suite of highly impactful Point of Purchase material will be available throughout the trade, with a fully integrated marketing campaign to support the activation of all Deep RiverRock pack formats. Deep RiverRock’s ‘January, Purer Than December’ heavyweight media plan incorporates television, cinema, outdoor and ambient advertising and radio promotional activity. 58

ONE lucky barperson who takes the step to discover Tiger Beer’s ‘Golden Buddha Bottle’ will be blessed with Chinese New Year luck. Hidden secretly in a case of Tiger Beer, the ‘Golden Buddha Bottle’ entitles the finder to experience the beauty and mystique of Asia first hand, courtesy of Ireland’s best selling Asian import – Tiger Beer. The Golden Buddha Bottle will be found before Chinese New Year on Febuary 18. It’s part of a major push by Tiger Beer including TV & radio sponsorship, in-outlet promotion and an on-pack competition to cement the Chinese New Year celebrations in Ireland.

New Walkers Baked WALKERS will revolutionise the snacks market in the coming weeks with the launch of new Walkers Baked, which will be backed by a €1m marketing support programme, including a new TV ad featuring Gary Lineker. Walkers Baked contains 70% less fat than regular crisps and, with a controlled portion size of 25g, contains less than 100 Calories per pack - all with a great Baked taste. The result of more than a €23m investment in R&D, Walkers Baked is made using proprietary technology which cannot be replicated by competitors. Walkers Baked are available in two classic Walkers flavours: Salt & Vinegar and Cheese & Onion, as well as variety packs.

Lucozade Sport ‘Beanie’ Promotion ENSURING a ‘head start’ to sales during 2007, Lucozade Sport has launched a generous promotion, now running in stores nationwide. Consumers who purchase two bottles of the brand’s 600ml plus 25% extra free bottle will receive a free, cool beanie hat – ideal for staying warm whilst training outdoors this winter. Ensuring maximum impact on-shelf, the promotion will be supported in shops with eye-catching Point of Sale material featuring rugby sports stars Ronan O’Gara and Neil Best, who currently appear in the brand’s advertising.

The Real Irish Food Company THE Real Irish Food Company is a range of premium pasta sauces, relishes, dressing and preserves that have been recently launched in the Irish market.There are over 13 products available in the range, including the products pictured here: The Real Irish Food Company Red Pepper Roasted Relish and Spiced Orchard Fruit Relish. All products are made using only the finest ingredients and there are absolutely no artificial colours, preservatives or flavours. The range is distributed by the Jacob Fruitfield Food Group.


RN Jan/Feb07What’s New ●

Heineken’s New Advertising Campaign JANUARY saw the launch of a new outdoor, press and TV advertising campaign from Heineken to support the launch of their new embossed can packaging onto the Irish market. The new ad will be visible on outdoor europanels, 6 sheets and 48 sheets. The roll-out of a five-week press and TV advertising campaign for the new embossed can began mid-January. The television advert shows a luxury car being compressed and the metal is then used to make the new embossed Heineken 500 ml can. With the line ‘Lucky Car’, the humour, and the focus of the advert centres on the idea that really expensive and premium items would be lucky to be Heineken Cans.

SOL Premium Continental Meats THE SOL range of premium continental meats is selected from the best known traditionally produced cured meats from Spain and Germany. Serrano Ham Slices (100g), Chorizo Extra and Pamplona Slices (100g), Spicy Chorizo Sausage (200g), Spanish Mix Selection Slices (150g), German Classic Salami Slices (100g) and Low Fat Premium Salami Slices (100g) are made from selected dry cured pork meat. Ready to eat, they are ideal for sandwiches and panninis, cold platters, starters and tapas. They are also a perfect topping ingredient for pizza and pasta as they release their intensive flavour when heated up. The SOL range is distributed by Eirespan Ltd (www.eirespan.com).

New Flavour for Tayto Treble Crunch FOLLOWING the success of Tayto Treble Crunch Cheese and Onion flavour, Tayto has launched another exciting flavour in the range - delicious Sour Cream & Onion. Treble Crunch crisps, with only 99 calories per pack, are deliciously light and crunchy and packed full of flavour. Tayto Treble Crunch has 33% less fat than standard potato crisps, yet there’s no taste comprise. Treble Crunch from Tayto is cooked in pure sunflower oil. Tayto Treble Crunch Sour Cream & Onion comes in 6 packs and 20g single packs.

Café Origin Single Estate Coffee FOR the first time ever, Ireland has its own premium single estate coffee Café Origin. The award winning coffees are selected from premium quality plantations in Brazil, India and Indonesia and all have their own distinctive taste and flavour. Distribution for the coffee in Ireland is being handled by Berryhilll Merchants, Warrenpoint, Co. Down. The range of five coffees comes in striking packaging, featuring yellow sleeves and blue lettering and the company’s distinctive linedetched drawing of the Café Origin “coffee baron”, guaranteeing on-shelf stand-out.

ParaPlus Capsules from Anadin WYETH Consumer Healthcare have announced the launch of the latest product in the Anadin range ParaPlus Capsules, a premium analgesic which delivers rapid relief from pain, such as headache, period pain and muscular aches and pains. ParaPlus Capsules are presented in a striking blue and red carton with the Anadin heritage highlighted through a yellow flash. For additional impact, silver blocking and embossing are also used on the face of the pack adding to the premium look and feel of the product. The launch of ParaPlus Capsules will be supported with a significant marketing campaign, including TV advertising, using an Irish produced TV commercial, together with a range of Point of Sale material.

Haribo Countline Cash Bonanza INDEPENDENT retailers can cash in on the Haribo Dunhills (Pontefract) spring ‘Cash Back Bonanza’ by collecting tokens appearing on eight of Haribo’s best-selling 2c, 5c, 20c and 25c countline drums. The special promotional packs, featuring a 20c token, will be available from all cash & carries and delivered wholesale distributors from February through until April or while stocks last. Retailers simply have to collect 25 tokens which can be redeemed for a €5 cheque.

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RN Jan/Feb07Shelf Life ●

Shelf Life A NEW outdoor innovation in Ireland, allowing advertisers to dispense product samples, has been introduced to the CBS Outdoor PurchasePoint network (formerly known as Viacom Outdoor). PurchasePoint dispensers allow advertisers to combine advertising at the Point of Sale with product sampling, as evidenced by Fisherman’s Friend, the first advertiser to use this innovation in November 2006. Pictured with the PurchasePoint Dispenser are Claire Mulhern and Lorna Carroll, both CBS Outdoor. EDWARD Dillon & Co. Ltd is consolidating its portfolio to focus on growth-oriented premium brands. Three premium brands from the Fosters Group (Rosemount, Lindemans and Penfolds) joined the Dillon portfolio, alongside Wolf Blass, on January 1, while the company has also resigned a significant number of brands from its portfolio and will cease their distribution during the course of 2007.

INSIGHT Research’s ‘Global Convenience Benchmarks’ programme runs from April 21-26 at the K Club, Co. Kildare, and The Gresham Hotel, Dublin. The main conference, on April 25, includes Chris Martin, CEO, Musgrave Group; Declan Ralph, Retail Director at BWG; and Martin Todd, UK and Ireland Sales Director, ExxonMobil. For the full programme, see www.insightreport.co.uk/conferences/gcb2007/index/html.

TESCO Ireland and O2 Ireland announced that they will launch Ireland’s first mobile virtual network operator, Tesco Mobile, in Summer 2007, using an 089 number prefix. Tesco Mobile will sell exclusively Tesco branded mobile services in Tesco Ireland stores nationwide. Following the launch, customers will have the choice of a range of mobile handsets and unique pre-pay price plans, while a bill pay service is expected to be introduced later.

REPAK has expressed concern over aspects of the recently published Oireachtas Environment Committee’s third report on Household Recycling. In particular, Repak argued that to introduce additional packaging levies would be viewed as double taxation by industry and “would undermine the current funding base of Repak and its ability to fund growing recycling targets. Such a move would also undermine the voluntary basis of the Repak scheme and other voluntary producer responsibility schemes, such as WEEE”.

IRELAND’S 3rd National BBQ Campaign was announced recently, and includes both the now famous National BBQ Week, running from June 4-10, and the third annual search for Ireland’s Best BBQ’er competition. 2007 will also see the return of the National BBQ Bus RoadShow tour of Ireland, plus an exciting new event, Ireland’s first ‘Have a Better Barbi Day’. Furthermore,the campaign aims to grow the BBQ market by a further 15% to a level of 2.3m barbecues in 2007. See www.nationalbbqweek.ie for more details.

STEPHEN Byrne, Sales Representative, Kerry, is pictured receiving the John Player & Sons Excellence Award 2006 from Dan O’Connell, Area Sales Manager, Munster, and Tony Fitzpatrick, National Sales manager. The presentation took place at the company’s office in Park West, Dublin, during the 2006 Sales Conference.

SUPERQUINN is reported to be set to launch a full range of own label goods within the next year. Chief Executive Simon Burke is quoted in Retail Week as saying, “I would be hoping to get 200 lines on shelves by the end of the year across all the significant departments - with another 200 in the pipeline. The scope is enormous.”

SIGNIFICANT rises in the price of energy, labour and ingredients are increasing pressure for a rise in the retail price of many popular soft drinks, according to the Beverage Council of Ireland (BCI). Bernard Murphy, BCI Chief Executive, noted, “To date, the soft drinks sector has absorbed these upward pressures on prices. However, the industry is faced with rises in the cost of main product inputs that are significantly above general inflation. As a result, it would seem inevitable that soft drinks prices are set to rise.” GREG Butler, Barry’s Tea Finance and Marketing Director for over 26 years, has announced his retirement, with effect from February 2007.

SHOP 2007 takes place at the RDS Simmonscourt from September 2-4 this year. SHOP 2006 was a tremendous success, with 97% of the 4000+ visitors feeling that their visit to the show was “worthwhile” or “very worthwhile, while 89% plan to visit SHOP 2007, and 90% of last year’s exhibitors plan to display their wares again this year. According to event organisers, Expo Exhibitions and Key Events Ltd, SHOP 2007 will include a host of value-added features aimed at maximising attendance at the event, including seminars, workshops and competitions. 60




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