retail news may 2011

Our Quality. Your Safety

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• 5 million BIC® lighters are manufactured and sold worldwide every day

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• BIC®: 100% safety record in compliance with ISO9994

MAY 2011

Confectionery

News2 Mixed Reaction to

Government’s Jobs Initiative.

3 Rumours Persist Over Superquinn Sale; Codes of Practice Work for Alcohol Sector.

4 New Lease Agreements Pave the Way for Asda? Dairy Prices Soar.

5 Musgrave Group Announces Annual Results; Tesco Ireland Reports Sales Increase.

6 Discounters Claim 10% of Grocery Market Share; Payzone to Sponsor RGDATA Report on Local Shops.

Shop Profile14 Stephen Durnin’s

brand new Daybreak store in Sallynoggin, Co. Dublin, has struck a chord with its customer base by clearly demonstrating a commitment to meeting their needs.

SHOP 201116 A key event on the

calendar of the food, drink, retail and hospitality sectors, SHOP 2011 takes place from September 27-29 at the RDS, Dublin.

Retail News Interview18 Where to now for Irish

retailers and brands? With consumers increasingly seeking out value offers and cutting back on their grocery spend, what can retailers and brand owners do to fight back? David Berry from Kantar Worldpanel has the answers.

Special Report22 Ireland’s illegal tobacco

trade has shrunk for the first time in six years, according to JTI Ireland’s latest illicit tobacco trade review.

Summer Drinks34 We examine the must-

stock brands for the summer season across Wine (4), Spirits (Page 38), Soft Drinks (Page 42), Cider (Page 46) and Beer (Page 48).

Refrigeration50 Daikin Europe NV’s

recent Refrigeration Days conference highlighted the potential savings to be made by switching to a Daikin Conveni-pack or Daikin ZEAS refrigeration/air conditioning system.

SuperValu Quality Awards60 SuperValu presented

EIQA Hygiene & Food Safety Certificates to a record number of SuperValu retailers at its annual Quality Awards ceremony.

Forecourt Focus62 Michael and

Josephine Fitzpatrick switched from a fully independent to a Costcutter store when they upgraded their forecourt in Kilmilhil, Co. Clare, and they haven’t looked back since.

Shelf Life64 All the latest news

and gossip from the trade.

www.retailnews.ie|May 2011|Contents|1

Managing Director: Fergus Farrell

Editorial & Marketing Director: Kathleen Belton

Editor: John Walshe [email protected]

Advertising: Kathleen Belton [email protected]

Pat Murray [email protected]

Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

Published by: Tara Publishing Co. Ltd.,

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

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

Web: www.retailnews.ie Email: [email protected]

Subscription to Retail News: €95 plus VAT Email: [email protected]

Origination by: Rooney Media Graphics Printed by: W&G Baird

Reproduction without written permission is strictly prohibited.

Contents

8 Industry News

61 Market News

24 Summer Stocking: BBQ

30 Summer Stocking: Salads

& Dressings

54 Tobacco

REGULARS

SECTORAL REPORTS

THIS month, David Berry, Commercial Director at Kantar Worldpanel Ireland, talks to Editor John Walshe about the changing face of the Irish grocery retailing landscape (Page 18), including the fact that Irish consumers have been buying less groceries since the start of 2011. David discusses the continued rise of own label, the growth of the discounters and advises brand owners on how to ensure that their brands remain top-of-mind with consumers in the future.

We also examine JTI Ireland’s second report into Ireland’s illicit tobacco trade, which found that the scale of the illegal tobacco market in Ireland has fallen for the first time since 2005 (Page 22). The comprehensive report examines the reasons behind this drop and asks what more needs to be done to cut the illicit tobacco trade even further from its current unacceptable level, with almost one in four cigarette packets consumed in Ireland evading Irish excise duty.

Also, this issue, Chief News Reporter Pavel Barter reports on the reaction across the trade to the Government’s Jobs Initiative (Page 2), the rumours about a potential sale of Superquinn that just won’t go away (Page 3) and the likelihood of Asda entering the Irish market, thanks to improved lease terms for commercial tenants (Page 4).

Meanwhile, RETAIL NEWS brings you the definitive guide to stocking for summer, with reports focused on al fresco dining covering the BBQ (Page 24) and Salads & Dressings (Page 30) sectors, while our comprehensive Summer Drinks special (Page 34-49) covers the wines, spirits, beers, ciders and soft drinks guaranteed to boost your profits this summer, as our off trade continues to grow at the expense of the on trade.

Kathleen BeltonEditorial & Marketing Director

Future Proofing the Retail Sector

50

46

2

PROPOSED schemes to help fund small businesses, as part of the Government’s jobs initiative, are unlikely to see the light of day until the end of the year, RETAIL NEWS can reveal. Richard Bruton TD, Minister for Jobs, Enterprise and Innovation, had announced the introduction of an SME loan scheme, but this will not be introduced until autumn. A micro-finance fund, providing small loans for start-up businesses, is pencilled in for December.

“They just wanted to get something out there to stop people like ourselves whinging,” Mark Fielding, Chief Executive of Irish Small and Medium Enterprises Organisation (ISME), told RETAIL NEWS.

Reaction to the jobs initiative among the small business and retail sector has

been mixed. Representatives were pleased with the Government’s decision to halve the lower rate of PSRI, on jobs that pay up to €356 a week, and to reduce VAT (from 13.5% to 9%) on tourist-related ventures. “The PRSI move is great,” said David Fitzsimons, Chief Executive, Retail Excellence Ireland. “600,000 people are at that pay rate. This will solidify and underpin those vulnerable jobs. It will also get employers to look toward job creation.”

Retailers are less impressed by the Government’s stance on the Joint Labour Committee (JLC) rates. Despite calls from groups such as IBEC to abolish the JLC, which sets pay above the national minimum wage in the grocery retail sector, the initiative only speaks of “substantial reform of the system”, without going into detail.

“We don’t hold a great amount of hope because of vested interests from the trade unions,” said Fielding. “They’ll never abolish the JLC’s.” The decision to reverse the minimum wage to its original €8.65 rate may not affect grocery retailers, but Fielding believes it will harm the wider industry. “It sends a wrong signal. When you compare our wages across Europe, people are dumbfounded. We had civil servants going to Europe with a begging bowl, trying to be rescued. Their salaries are almost twice those of the German civil servants.”

As part of its reform of JLC rates, the Government is expected to scrap premium payment for weekend and overtime work. However, Vincent Jennings, Chief Executive, Convenience Stores & Newsagents Association (CSNA), contends this will not go far enough: “It seems to be a notional reform of something that can’t be reformed... The only thing we want, from an employer’s perspective, is [the JLC’s] abolition.”

The Government hope their jobs initiative will kick-start consumer confidence. During boom times, consumers saved about €2 in every €100; they are now saving about€12. The initiative might also provide confidence for businesses to start investing. John Perry TD, Minister for Small Business, has called for solutions to the administrative

burdens facing small businesses. VIMA (Revenue and CSO) and the Health and Safety Authority (HSA) have created on-line tools purported to save businesses around €42m per annum in red tape work.

The decision to fund the jobs initiative with a 0.6% levy on private pension funds has caused some controversy. Fianna Fáil’s Willie O’Dea TD described the levy as “the biggest smash-and-grab raid since Nero got rid of Rome to build a pad for himself”.

“This Government doesn’t have two brass farthings to rub together,” added Fielding. “I’ve been fielding questions and queries from current members and former members, who are now retired, saying ‘Why did I save so much in my pension so I wouldn’t be a burden to the state? Now the state comes back and kicks me in the goolies.”

News

2|Retail News|May 2011|www.retailnews.ie

David Fitzsimons, Chief Executive, Retail Excellence Ireland.

Mixed Reaction to Government’sJobs Initiative

Mark Fielding, CEO of ISME.

Vincent Jennings, Chief Executive, Convenience Stores & Newsagents Association.

News

www.retailnews.ie|May 2011|Retail News|3

THE regulatory codes of practice governing alcohol promotion and marketing in Ireland are amongst the most effective in the world, the director of the Alcohol Beverage Federation of Ireland (ABFI), Kathryn D’Arcy, has told RETAIL NEWS .

The codes are designed to ensure minimal exposure of alcohol advertising to children. For example, no alcohol advertising can be shown within 100 metres of a school, or a community location that hosts children. Also, where there are high numbers of underage audiences, alcohol advertisements are not permitted. The codes include regulations on advertising content, placement and packaging. They also instruct retailers on alcohol sales.

The codes cover promotional channels on the Internet, and social networking sites such as Facebook and Twitter. D’Arcy said the codes have proved effective, due to high compliance from alcohol retailers, marketing companies, and the drinks industry. ABFI hold training programmes for alcohol advertisers and marketers. “Over 250 people have taken part: all the drinks companies and their associated advertisers, as well as designers etc” she said. D’Arcy called for continued review of the codes to ensure market relevance.

• A new temporary rate of VAT at 9% has been introduced for a range of goods and services in order to stimulate employment, focused mainly on the tourism sector. This new reduced rate of VAT will be introduced with effect from 1 July 2011 and will apply until the end of December 2013.

• The lower rate of employer PRSI (8.5%) is to be halved on jobs paying up to €356 per week, from July 1. This applies to all employees earning up to this income level (and not just new employees). The charge to employer PRSI on share-based remuneration, announced in the last Budget, is also being abolished.

• In order to improve the competitiveness of R&D, the Government has committed to enhancing flexibility for companies in accounting for the R&D credit above or below the line.

• A levy of 0.6% is to apply to the capital value of assets under management in pension funds established in the State. This levy is to apply for four years, beginning this year.

THE JOBS INITIATIVE AT A GLANCE

Rumours Persist Over Superquinn Sale

Codes of Practice Work for Alcohol Sector

IRISH supermarket chain Superquinn is still reported to be up for sale, after an offer from a major group, presumed to be Musgrave, fell through. Superquinn has been the subject of takeover speculation for two years. Other rumoured suitors include Asda, Waitrose, Sainsbury’s, and Dunnes. But over the last weeks, Select Retail Holdings (SRH), the consortium behind the retailer, are

rumoured to have approached rival retailers seeking offers.

When contacted by RETAIL NEWS, both Superquinn and Musgrave Group declined to comment on the rumours. Meanwhile, the Superquinn Group of Trade Unions, which represents the retailer’s 2,500 staff, has written to the management, requesting clarification on the future ownership of the company.

Fitzsimons believes the issue has been overstated. “Too much has been made of the pension levy,” he said. “Pensions in Ireland have been afforded an oasis of luxury in terms of tax protection over the last number of years. The Government is simply taking back a tiny proportion of benefit to reap reward for the economy, which will in turn accelerate the performance of the pension.”

Despite cautionary concerns around the issue

of wages for the grocery retail sector, most industry representatives told RETAIL NEWS that the jobs initiative bodes well for the new Government’s efforts to get the economy on track.

“We need to be positive,” concluded Vincent Jennings. “At least they are showing to be somewhat imaginative, willing to take risks, and trying to increase jobs. More jobs mean more money to spread around. Let’s hope it works.”


New Lease Agreements Pave the Way for Asda?

LOWER rents, shorter lease terms and a greater willingness among landlords to negotiate with their tenants, could pave the way for new entrants to the Irish market. New rent concepts may even entice Asda to Ireland, Peter O’Meara, a commercial property developer for Savills Ireland, has told RETAIL NEWS. “It is allowing new entrants that otherwise wouldn’t have come here,” he said. “While things are economically poor, it’s not a

bad time to be looking at the Irish market. Asda can enter from a property point of view at competitive rates.”

According to O’Meara, rents have transformed considerably over the last 12 to 24 months. Traditionally, leases were for a term of 20 to 25 years with 5-year upward-only rent reviews. Now, lease terms are generally for 15 years, with rent reviews on a downward, as well as upward, basis. While rent used to be paid as a straight

figure, new deals have emerged, such as rent only, base rent and turnover top-up, and turnover rent.

“Anything goes,” said David Fitzsimons, Chief Executive Officer, Retail Excellence Ireland. “It’s an incredible opportunity for a new breed of retailers. Existing retail tenants who have reserves can take advantage of this opportunity to grow their business, win market share through store expansion, and balance their property

portfolio. They can balance the expense of legacy leases with new leases, reducing the aggre-gate rent cost to the business.”

Fitzsimons said there has been a vacancy decrease, and an occupancy increase, in Ireland. A recent survey in Cork found that the number of vacant shops has dropped 40% in 12 months: there are 63 vacant premises in the city, compared to 108 in 2010.

“There’s a lot more flexibility in the market in Cork than last year,” Barry Keane, who undertook the Cork City Occupancy Survey, told RETAIL NEWS. “This year, it has got to the position where landlords are saying, ‘Let’s get this occupied, rather than just leaving it sitting there’. There’s more flexibility and willingness to negotiate on time and price. The obvious example is Merchants Quay Shopping Centre, one of Cork’s main shopping centres, which was virtually empty last year. It’s full this year. The anecdotal evidence is that the owners took a practical decision.”

Fitzsimons expressed doubts that Asda would consider moving into the Irish market until the Government introduces new lease legislation, and conducts a review of landlord and tenant legislation, making the system more transparent. Furthermore, the retail giant could be kept at bay by Ireland’s rigorous planning laws and supermarket size caps.

News

DAIRY PRICES SOARDairy prices have experienced a massive price hike due to global pressure, RETAIL NEWS has learned. In May, Glanbia raised the price of cream and milk by 11.2%, butter by 9.5% and cheese by 4.5%, putting an increased strain on the retail trade.

The price hike is largely due to the global price hike in food commodities, said Paul Kelly, Director of Food and Drink Industry Ireland (FDII), in an interview with RETAIL NEWS. “The disaster in Japan and the unrest in the markets in the Middle East have kept markets unsettled. Japan is the third largest dairy importer.” High costs of raw materials, oil, and packaging, are also to blame.

Reports suggest consumers are buying cheaper own brand products instead of traditional dairy brands. “In terms of any increase in the current environment, with consumer sentiment so weak, it’s an issue for companies,” said Kelly. “You’ll probably see an absorption of costs, in terms of lower margins, but companies reach a point where they need to get cost recovery. Ultimately, the pricing for branded products or private label will be set by retailers.”

Imported milk - particularly from Northern Ireland where labour, waste, and production costs are lower - is putting Irish producers under further pressure.

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

News

MUSGRAVE Group made €4.4 billion in sales during 2010, a 3% drop on 2009. Its €72m profit before tax, however, marked a 3% increase. The company also cleared its start of year debt of €59m to close the year with net cash of €21m.

“Despite the economic crisis in Ireland and a very tough trading environment in all our markets, we delivered a good set of results in 2010,” said Chris Martin, Chief Executive Officer, Musgrave Group. “We have responded to the unprecedented challenges by completing the first year of our transformation programme, which is about delivering value for the consumer and our partners, simplifying our business and reducing our costs. In 2010, through improved ways of working with retailers and suppliers, we delivered lower prices and an enhanced product offer for shoppers. I am confident that this transformation programme is strengthening the business and providing a platform for the long term.”

A core part Musgrave’s strategy is a resolute commitment to investing in local communities and local SMEs, who are the backbone of the domestic economy and key to recovery and growth, he continued. “We partner with more than 3,300 local retailers across Ireland, the UK and Spain and together employ in excess of 50,000 people. In Ireland alone, we support over 1,000 SMEs, who are both creating and protecting in excess of 30,000 Irish jobs in the farm, food and retail sectors. This investment in the real economy and our commitment to supporting local employment and local suppliers

remain a compelling point of difference for consumers.”

Musgrave introduced numerous initiatives during 2010. SuperValu’s Real Rewards loyalty card attracted 670,000 users; 55% of all sales now go through the loyalty card. Centra continued to bring value to the market through promotions and rounded pricing, while the group opened its latest MarketPlace cash and carry outlet in Galway.

The Group’s wider European reach also grew. In the UK, 200 retailers joined the Londis brand in 2010, bringing the total number of stores to 1,784 by the end of 2010, while they opened a new store a month under the Budgens brand and December saw the first of 13 Somerfield stores divested to independent ownership. In Northern Ireland, the Mace brand was re-launched with more than 50 re-branded stores and 20 new store openings, leading to the creation of 110 jobs, while in Spain, Musgrave successfully divested eight stores to independent retailers and by the end of 2010, only 26 stores remained in Musgrave ownership.

Martin predicted a tough 2011 for the grocery market, with a difficult trading environment. “However, we are confident that our brands are adapting well to the budget-conscious consumer, that our retail partners who own their stores are bringing a different and better offer to their local communities and that our brands continue to attract new retailers,” he said.

“We are strengthening our business, sharpening our offer to consumers and supporting

our partners. This response to the recession is laying the foundation for the business to continue to grow through recruitment, expansion and acquisition. It is building a platform for the future which

will lead to stronger and better businesses for Musgrave and our partners.”

For information on the financial performance of Musgrave Group, log on to: http://www.musgravegroup.com

Musgrave Group Announces Annual Results

TESCO Ireland is in celebratory form, after the supermarket chain reported a 5% increase in sales, amounting to €3 billion, in the year to the end of February, 2011. The group attributed its success to increased popularity for its own label products and online grocery sales. The group opened stores in Westmeath, Mayo, Galway, Naas and Waterford, during the course of the year. Despite the group’s fortunes, it has opted to close its outlet in Dún Laoghaire, Dublin. Instead, it is to invest €4m on upgrading a nearby store at the Bloomfield Centre.

TESCO IRELAND REPORTS SALES INCREASE

Chris Martin, Chief Executive Officer, Musgrave Group.


News

Discounters Claim 10% of Grocery Market ShareTHE latest grocery market figures from Kantar Worldpanel in Ireland, for the 12 weeks ending April 17, 2011, show the German-owned discounters Aldi and Lidl continuing to surge forward in the market, at the expense of other retailers.

Aldi leads the market in terms of growth, increasing value sales by a remarkable 27.5% compared with last year. Lidl also outperformed the market, posting the second highest growth rate of 8.3%, a significant increase from February of this year when growth was only slightly ahead of the market at 3%. Both retailers increased their market shares, from 3.3% to 4.2% for Aldi and 5.7% to 6.1% for Lidl, compared to this time last year.

“Aldi and Lidl’s growth seems to be driven by customers’ increasing trust in their fresh food offering,” explains David Berry, Commercial Director at Kantar Worldpanel Ireland. “Both retailers have seen phenomenal growth (45% for Aldi and 37% for Lidl) over the last three months, in their fresh meat, poultry and fish categories.

“However, if both retailers want to continue to gain market share, they will have

to entice more customers to their stores on a more regular basis. Currently, shoppers visit Tesco and Dunnes on average more than once a week. In comparison, the average shopper only visits an Aldi or Lidl every other week - fresh food provides these two retailers with an incentive for customers to shop there more regularly.”

Superquinn continued to suffer this month with negative sales growth of 5% and a loss of market share from 6.9% last year, to 6.4% in the same period this year, leaving the retailer with Lidl snapping at its heels for position as the fourth largest grocery retailer.

Tesco posted a slight increase in growth of 1.6%, expanding its market share from 26.9% last year to 27.1%. Dunnes and SuperValu dropped market share slightly compared to last year from 23.7% to 23.6% and 19.8% to 19.5% respectively.

Market growth crept up slightly this period to 1.1%, compared with 0.8% last month despite a minor rise in price inflation.

Grocery inflation stands at 5.4% for the 12-week period ending April 17, up from 5.3% in the previous period.

PAYZONE is to sponsor the publication of RGDATA’s 2011 report on the economic and financial significance of independent local retailers. Researched and written by economist Jim Power, the report, entitled ‘The True Value of Local Shops’, will provide a timely update on a similar 2009 report and will be published later this year. It will highlight the significant economic and social contribution that the 4,000 local, independent shops represented by RGDATA make to the local and national economies. The role of local retailers as major employers, providers of a route to market for local producers, and significant purchasers of Irish goods and services will be examined.

The report will also consider the many challenges faced by independent retailers in the current recessionary economic climate and present recommendations as to how this valuable sector could be supported.

“Collectively, the 4,000 family owned shops that RGDATA represents make a significant contribution to their local communities and the national economy. This report will quantify that contribution and RGDATA will use it to persuade Government to promote policies that support the survival of local independent shops,” said Tara Buckley, Director General, RGDATA.

Commenting on Payzone’s sponsorship of the report, Jim Deignan, Managing Director, Payzone Ireland, said that Ireland’s unique network of local independent retailers plays a critically important role in local communities all over the country: “These retailers are important partners for Payzone in the delivery of payment services to customers and we are pleased to support the research and publication of this RGDATA report. We are hopeful that the report will support retailers by highlighting their value and the issues and challenges they are facing on a day to day basis.”

Pictured at the announcement of Payzone’s sponsorship of the RGDATA economic report on ‘The True Value of Local Shops’ are: Tara Buckley, Director General, RGDATA; economist Jim Power, report author; and Jim Deignan, Managing Director, Payzone Ireland (left).

Payzone to Sponsor RGDATA Report on Local Shops

THE hard work and effort put in by John Player employees over the past few weeks paid off recently as 13 employees soared across the finish line at the annual SPAR Great Ireland Run. On the balmy summer day, three John Player teams – JP Blue, JP Red and JP Gold – raced against the clock, and proved their high level of fitness and agility. But only one of three JP teams could claim the top time, and JP Blue team members completed the course in the fastest time collectively. “We are confident we were the fittest and fastest FMCG supplier that competed in Sunday’s race…just like our business!” noted a company spokesperson.

THE Corona Fastnet Short Film Festival, now in its third year, takes place in Schull, West Cork from May 26-29 and, despite the fact that there is no cinema in the town, the organisers have come up with unique ways to show films all over the town, including the innovative use of an intranet network and Wi-fi hotspots. The Schull event brings together first time filmmakers, established directors, including such notables as David Puttnam, producers and film buffs of all ages for the last weekend in May. Pictured at the launch are actress Maria Doyle-Kennedy (Downton Abbey/The Tudors/The Commitments), musician Maurice Seezer and Michael Barry, MD, Barry & Fitzwilliam.

John Player Smoking Hot in SPAR Great Ireland Run

Corona Fastnet Short Film Festival

Industry News


BUYLO witnessed record sales at its seventh store opening, located at the Royal Liver Retail Park, Kylemore Road, Dublin 12. This store opening marks the latest addition to the successful roll-out of the BuyLo franchise across the country. The new 14,000 square feet store has been completely refurbished and has created 15 new jobs in the locality. A range of grocery and household products were in high demand as shoppers flocked to avail of the fantastic items on sale. Stephen Doyle, General Manager BuyLo, said “We were delighted by the turnout on the opening weekend and the reaction amongst customers, who have come from far and wide, has been a tremendous kick-start to the Dublin store opening.”

ADM Londis plc is to add 12 new stores to its retailer network throughout 2011, supporting an estimated 240 jobs. The group also revealed that, despite passing significant price cuts to its retail members, ADM Londis has remained profitable throughout the recession, with pre-tax profits for 2010 standing at €1.1m, compared with €1.7m in 2009 on wholesale turnover of €237m. With like-for-like sales down 7%, group retail member sales totalled just under €500m for 2010. The Group expects profits to increase in 2011. “We are delighted to announce our intention to recruit 12 new stores in 2011,” noted Stephen O’Riordan, CEO, ADM Londis (pictured). “This process is already underway with two stores secured. Having endured three years of Ireland’s toughest economic recession to date, this store recruitment and job creation is an important show of faith by Londis in the Irish grocery retail market and in the Irish consumer.”

ADM LONDIS TO OPEN 12 NEW STORES IN 2011

Record Opening Weekend for BuyLo Dublin

A Taste of SuccessA GROUP of 10 ambitious food entrepreneurs are participating in the Cork County Enterprise Boards’ Advanced Food Development Programme 2011. This progressive food business training initiative focuses on providing targeted food business workshops and one-to-one expert mentoring sessions. Over a period of six months, food SMEs from across Co. Cork will also participate in trade events and visit some of Cork’s most successful food retailers and food producers as part of organised market research visits. In addition, participants will be offered the enviable opportunity of meeting key food industry experts, including potential retail food buyers. Pictured is Katie Buckley, from Katie’s Real Chocolate, Bandon, one of the food entrepreneurs taking part in the event.

Glass and a Half Full Productions launched the latest addition to the Cadbury Dairy Milk legacy and jumped into the world of dance with a new €1 million advertising campaign. Hot on the heels of previous hits The Gorilla, Trucks, Chocolate Charmer, Fish and Eyebrows, Cadbury Dairy Milk ‘Charity Shop’ launched just after 10pm on TV on RTE1 for the first time on Friday 6th May.

‘Charity Shop’ is another 60 seconds of pure, unashamed joy designed to make you smile. The magic begins as the lights come up, the music starts and one by one the well-worn, well loved clothes come to life before your eyes against the familiar backdrop of a charity shop setting.

As the individual clothes fall from the rails, rise from the floor and burst from cupboards the once lifeless Charity Shop is transformed into a dancing extravaganza as the characters come to life to show off their moves.

For the first time in Ireland, the theme tune from the advert, namely Jermaine Stewart’s ‘We don’t have to take our clothes off’ was aired across 33 Irish music radio stations at approximately

9am on the launch date, to form a ‘road-block’ of the music across the Irish airwaves, generating intrigue and talkability around the first airing of the advert later that evening on RTE.

The Irish campaign will be aired across a heavyweight media package negotiated by PHD Ireland including TV, video on demand and online media, and will be supported by digital, PR, events and sales promotion channels with Cadbury working with other Irish agency partners MCsquared, and QMP.

Staying true to the nature of past Cadbury Dairy Milk campaign Charity Shop is a genuinely exciting production designed to deliver a Glass and a Half Full of Joy to consumers across the country. Siobhan McNickle, Senior Brand Manager, Cadbury Ireland, comments: “For Cadbury Dairy Milk is about creating moments of joy that make people smile. We believe this production is another great way of doing just that”.

This Summer, the innovative, and most importantly, fun campaign is set to get Ireland dancing.The ad is available to view online on http://www.youtube.com/glassandahalffull

For further information on Cadbury Dairy Milk, please visit: www.aglassandahalffullproductions.com

FLOGAS has won the contract to supply LP Gas for the new LP Gas-powered fleet of forklifts at Diageo Baileys Global Supply warehouse on the Nangor Road in Dublin. Up until the changeover, the forklift fleet had been running on electric batteries and analysis showed that the charging process was taking eight hours, was very labour-intensive and each battery operated at a reduced capacity during its last hour of power. The new LP Gas-powered forklifts offer a clean, virtually odourless and soot-free solution, but also come with a host of other benefits. Diageo opted for forklifts with permanently mounted LP Gas tanks and a Flogas bulk gas refuelling unit. The storage of LP Gas on site means instant refills and subsequently no downtime. The switch also means an extended engine life, no manual handling, high level engine performance, low CO2 emissions and low running costs. Pictured are James Smith, Technical Services Engineer, Flogas Energy Solutions, model and reality TV star Vogue Williams and Pat O’Brien, Logistics Manager, Diageo Baileys Global Supply.

Flogas Signs Diageo Deal

Industry News


IRELAND has a new top storyteller, as Lyons Gold Blend presented Dubliner Paul O’Brien with the title of Ireland’s Top Storyteller, following a nationwide search. 120 budding storytellers entered the competition online, over the phone and with the Lyons Tea Story Squad as part of the Lyons Gold Blend Top Storyteller Tour, with 10 finalists competing at the National Final in Dublin, where they completed a

storytelling challenge for the judging panel. Winner Paul O’Brien is pictured, together with the judging panel, comedian Karl Spain, former Fair City actress and best-selling author, Claudia Carroll, and storyteller Clare Muireann Murphy, who deemed Paul the top of the talkers with the gift of the gab, and presented him with a €10,000 prize. For updates on Lyons Tea, visit: www.facebook.com/LyonsTeaIreland.

FOR the second year in a row, Kellogg’s has been named among the top three most reputable companies in Ireland. Corporate Reputations today announced the results of their second annual Ireland RepTrak 2011 study, where Kellogg’s featured at number three, with Google and Cadbury holding first and second place respectively, and Nokia and Volkswagen rounding out the top five organisations. “We are delighted to have been recognised as one of the most reputable companies in the country for the second year in a row and we will continue to build our reputation over the coming year,” said Jim McNeill, Managing Director, Kellogg Company of Ireland, who is pictured (right), with John Herlihy, Google Vice-President of Online Sales and Operations, Emerging Markets, Europe & Asia (EMEA); Tánaiste and Minister for Foreign Affairs and Trade, Eamon Gilmore TD; and Eoin Kellet, Head of Sales at Cadbury.

KELLOGG’S NAMED AMONGST MOST REPUTABLE COMPANIES

IRISH Rugby international, Ronan O’Gara is pictured with Karl Sheppard, aged 11, at the launch of the 2011 Avonmore Big Picnic for Barretstown campaign. For the third year in a row, Avonmore is campaigning to encourage everyone, whether it is individuals, families, schools or companies, across the country to have a picnic this summer and raise much needed funds for Barretstown. In addition, Avonmore will match every €1 raised by participants in the Avonmore Big Picnic for

Barretstown in 2011. See www.BigPicnic.ie for more information

Lyons Finds Top Storyteller

National Lottery Annual Results THE National Lottery raised €243.7m for good causes in 2010. This brings the overall level of funds raised since the launch of the National Lottery to over €3.6 billion, with more than €1 billion of that sum raised in the last four years. 2010 was also an excellent year for players as they shared €419.9m, or 54.4% of total sales in prizes, up from 53.8% in the previous year. On average, the National Lottery paid out over €1m every day of the year to players. Total sales were €772m, down 5% in a challenging retail environment. Lotto related draw games continued to be the main product category, accounting for €430.6m or 55.8% of sales in 2010. EuroMillions generated sales of €98.6m, while the associated EuroMillions Plus game, which is exclusive to Ireland, achieved sales of €33.2m, and sales of Scratch Card games accounted for 20% of the business and contributed €153.2m in sales. The National Lottery Annual Report 2010 can be downloaded on www.lottery.ie.

Avonmore Picnic for Barretstown

Brand new packs for tasty sales.

Exciting makeover for Ireland’s No.1 brand* in frozen potato.

Eye-catching designs improve freezer stand-out and aids shopper navigation in the category.

Bags of advertising support – TV, radio and outdoor.

If it matters to family, it matters to McCain.

*AC Nielsen Scantrack January 2011

AN innovative new seafood product developed by Keohane’s of Bantry with the assistance of BIM’s Seafood Development Centre (SDC) has led to the creation of 12 new jobs for the West Cork company. The new product is a microwaveable fresh fish product, the first of its kind in Ireland and has been eagerly taken up by many of the multiples since its creation. Projected sales over the next three years are valued at €3m as the company targets customers both on the home market and abroad. Rose McHugh, Chairman, BIM; Minister of Agriculture, Food and Marine Simon Coveney TD; and Michael Keohane of Keohane’s of Bantry, are pictured at the official opening of the Keohane’s new facility in Kinsale Road, Cork City.

The Spirit of Italy

BIM HELPS KEOHANE’S CREATE 12 NEW JOBS

Industry News


LUSK-based company, Country Crest has won the Agriculture, Food & Drink Award at the national final of the Ulster Bank Business Achievers Awards. Nearly 400 businesses across Ireland entered the 2011 Ulster Bank Business Achievers Awards. The winning business in each category was selected from a shortlist of four companies, one from each province. Companies were rigorously judged on a variety of merits including financial performance, company milestones and achievements, future strategy for the business and development of innovative products and services. Pictured

are (l-r): Sean Martyn, Director, Ulster Bank; Michael Hoey, MD, Country Crest; Susan McDevitt and Chris Harmon, both from Country Crest.

TUESDAY, May 3, saw Nestlé Ireland, launching ‘Happy Chewsday’ a major marketing campaign to celebrate the introduction of new Rowntree’s Sour Pastilles. The total campaign spend is estimated at over €500,000 and will include TV, national and regional radio, print ads, 6-sheet, Dart cards, bus cards, Luas dual strap line ads and PR, alongside a nationwide sampling campaign. In addition, a number of specially commissioned mirror vinyl bus shelter specials are located across the country asking passers-by to “Show us your chewface!” Pictured are model Georgia Salpa, surrounded by ‘chewfaces’ at the launch of Rowntree’s new Sour Pastilles ‘Happy Chewsday’ campaign.

TO celebrate the new range of delicious Goodfella’s pizzas, Italian beauty Virginia Macari teamed up with Goodfella’s Italian chef, Antonio, and Sharon Whelan, Trade Marketing Brand Manager, Green Isle Foods; Derina O’Connor, Marketing Consultant for Goodfella’s, Green Isle Foods; and Mark Broderick, Business Sector Director Ireland, Green Isle Foods, to announce details of the first ever Goodfella’s ‘pop-up’ pizzeria on Grafton Street. For a limited time, pizza lovers could step into Italy from the streets of Dublin at Goodfella’s pizzeria and sample their new range, which includes Goodfella’s Takeaway Pizza and new to the Irish market, Goodfella’s Flatbread Pizza, free of charge.

Country Crest Wins Top Award

Dairy Milk Dances to a New Tune‘CHARITY SHOP’ is the title of the new 60-second Dairy Milk TV ad, the latest addition to the Cadbury Dairy Milk legacy, which jumps into the world of dance with a new €1m advertising campaign. Hot on the heels of previous hits like ‘The Gorilla’, ‘Trucks’, and ‘Eyebrows’, the new ad is 60 seconds of pure, unashamed joy, designed to make viewers smile, set to the infectious ’80s soundtrack of Jermaine Stewart’s ‘You Don’t Have to Take Your Clothes Off’. The Irish campaign will be aired across a heavyweight media package negotiated by PHD Ireland, including TV, video on demand and online media, and will be supported by digital, PR, events and sales promotion channels with Cadbury working with other Irish agency partners, MCsquared and QMP. The ad is available to view online on http://www.youtube.com/glassandahalffull

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Shop Profile


WHEN RETAIL NEWS visited Stephen Durnin’s Daybreak in Sallynoggin, Co. Dublin, it found a brand new shop that, within only a few months of opening, has already firmly positioned itself at the heart of a well established suburb on the south side of the city. Stephen and Daybreak have achieved this by displaying a strong commitment to integrating into the

community and meeting its needs at every turn.

Stephen spent his career to date working for a variety of symbol groups and multiples. His ultimate target was always to go into business for himself and in partnership with Daybreak, he has now achieved that goal. He spent over 12 months finding the right site and the right partner for the project, and that effort has been rewarded by the acquisition of the leasehold on a prime site on Church Place in Sallynoggin and the establishment of an excellent working relationship with the Daybreak team.

“When I was planning this venture, I spent a great deal of time researching the various groups and what they could offer me,” Stephen explains. “I also kept a close eye on how symbol groups were faring in a challenging market. Last year, Daybreak opened 27 new shops and I was very

impressed that the Group could show such strong growth in a slow economy. I was also extremely impressed by the package that Daybreak offers; from the look of Daybreak shops, to the level of support I would receive and through to the value that partnership with a group associated with Musgrave could allow me to offer my customers.”

Vivid ImpressionThe rewards of Stephen’s exhaustive evaluation of the alternatives on offer are evident from the moment you approach the new shop. Situated at the end of a sweeping crescent, directly opposite the church in Sallynoggin, the Daybreak shop makes a vivid impression. Clean fresh graphics showcase the top quality products available inside the shop and are balanced with ample unobstructed window space, which allows large volumes of natural light into the

Pictured outside the Sallynoggin store are (l-r): Anthony Nolan, Daybreak Territory Manager, and store owner Stephen Durnin.

Stephen Durnin’s brand new Daybreak store in Sallynoggin, Co. Dublin, has struck a chord with its customer base by clearly demonstrating a commitment to meeting their needs.

Commitment to the Community

interior of the shop and displays the pristine interior to passers by.

Looks aren’t everything and they are only part of the package that has positioned the shop where Stephen wanted it to be. The nearby church, as well as the proximity of the local school and college, means that even in the current climate, there is a large food-to-go market on Stephen’s doorstep. However, competition in the locality means that Stephen’s Daybreak has to offer a top quality selection at good value-for-money prices, be it in the deli or in ambient grocery sales.

‘Round pound’ pricing makes it easy for customers to figure out exactly what their spend will be and consistently strong value offers across the shop ensure value for money on top quality products. Daily specials are promoted on the shop’s Facebook page, particularly effective at targeting students at the school and college. Within a few months of opening, the shop already has over 200 followers and the popularity of the shop’s page is growing alongside in-store sales.

Pleasant Shopping Experience“In my opinion, it is absolutely vital for the owner of a local shop to demonstrate a clear commitment to the community the shop serves,” Stephen notes. “That means offering customers the products they want at the right price and a shopping experience that is pleasant and convenient. It means using local suppliers, if possible, and it means going above and beyond when meeting your customers’ needs.”

Stephen opened the shop right in the middle of the cold snap at the end of 2010. It could have meant a slow start, but Stephen spotted the opportunity in adversity. Despite the adverse weather conditions, Stephen offered home delivery of solid fuels to whoever needed it, an offer that endeared him greatly to locals, especially elderly consumers, and

showed just how committed the new shop was to serving the community. There was no shop on the site prior to Stephen opening the doors of the Daybreak and additional goodwill was generated by the fact that the new store hired seven people with grocery retail experience from the area, creating employment at a time when unemployment figures make depressing reading.

Stephen has a very hands-on approach to running the shop, spending far more time on the shop floor than in the back office, getting to know his customers and working alongside his staff, who are more than willing to take advantage of his experience to improve their performance at work. Daybreak provides additional on-site training, so that staff always implement best practice in every area of the shop’s operation.

“In retail, you have to be prepared to work very hard in order to succeed,” Stephen sums up. “That is what I do, what my staff do and what I demand from my symbol group partner.”

Professional & Dedicated RetailerStephen’s exacting standards have been matched by those of Daybreak, as Anthony Nolan, Daybreak Area Manager, notes: “Stephen is an

extremely professional and dedicated retailer. He has extremely high standards and at Daybreak, we

are only too happy to meet them. Our attitude is that every shop in the group must be a credit to the Daybreak brand, which means we have to match the dedication of our retail partners. We are on course to open another 30 shops over the course of 2011 and we have only been able to do that in such a challenging economic climate because we can offer a complete package and the type of support that retailers of the calibre of Stephen deserve.”

Sometimes the sheer volume of footfall is enough to keep a shop ticking over in a big city. But in the case of Stephen Durnin’s Daybreak, it’s all down to the store owner’s hard work and commitment to excellence, allied to the quality of the package that Daybreak provides to this dedicated retailer.

Shop Profile


Owner: Stephen Durnin

Location: 1 Church Place, Sallynoggin, Co. Dublin

Size: 2,365 square feet

Number of Staff: 9 full time & part time

Opening Hours: 07:00-22:00, Monday-Saturday; 08:00-22:00, Sunday

FACT FILE

SHOP 2011


SHOP 2011 Open for Business

SHOP 2011 is set to be the biggest and best ever, with all the right ingredients to help exhibitors and visitors increase their business, showcasing the latest innovations and products that the Irish market has to offer!

A new dimension to this year’s show is the inclusion of the French Trade Commission. On the French pavilion at SHOP, Irish visitors will have the unique opportunity to discover smaller French companies, offering interesting and different products that will hopefully have some “Je Ne Sais Quoi!” A French chef will also be offering tastings, so that visitors can try before they buy.

“Now that ‘gastronomic meal of the French’ is part of UNESCO’s intangible heritage list, France plans to promote its food products around the world through a campaign called ‘So French, So Good’ and SHOP 2011 is the perfect occasion for Ireland to have a taste of French excellence,” explains Marion Duguen, Manager of the Agribusiness Department at the French Trade Commission.

Exhibitor FocusThis year’s show is also set to host buyers for the multiples, forecourt & retail outlets, independent retailers, convenience stores, symbol group buyers, supermarkets and wholesalers, as well as leading players within the food service and hospitality sectors.

Exhibitors who have committed their support early include companies such

as Anglo Irish Refrigeration, Dairyglen, Hungry House, Nestlé Ireland, Pallas foods and Mini Donut Factory, to name a few.

Brian Daly, Channel Controller, Nestlé Professional Ireland, comments, “We are looking forward to introducing the new Nescafé Milano coffee solution at SHOP 2011. This exciting new appliance delivers premium, barista-style coffee in under 40 seconds. It’s a labour saving, time efficient device that is very easy to operate and offers premium, café style drinks at the touch of a button. It also looks fantastic, with a sleek, contemporary design and a small footprint, saving valuable counter space.”

Special Features & CompetitionsIn addition to business networking and informative seminars, this year the event will host an array of special features and competitions, one of which is a firm favourite, the Product of the Show Awards, which are known as the launch pad for companies to present their products to a captive audience.

Ireland’s most prestigious cheese competition, The International Irish Cheese Awards in association with Sheridan’s Cheese, will also be taking place this year, as well as the Associated Craft Butchers of Ireland’s National Sausage and Puddings Final. There will be a speciality food final, as well as meat cutting demonstrations for all butchers who are present at the show.

Following on from the success of last year, is the Dragons’ Den-inspired feature ‘Lions Lair’, where exhibitors can pitch their latest innovations to a panel of expert judges in front of an audience.

Early Booking SpecialseasyFairs is encouraging exhibitors to book early and benefit from a whole host of added service packages, such as early inclusion in all marketing collateral, early bird booking rates, plus free marketing tools with a minimum value of €2,000. Never before have exhibitors been offered such comprehensive packages that offer the opportunity to raise their profile before, during and after the show.

Packages for early bird bookers include free editorial in the show guide, PR on exhibitor’s news and attendance at the show, plus website presence, with free web banners, buttons and registration links. In addition, exhibitors will be sent 100+ free personalised ticket invitations to send out to anyone they want to invite to the exhibition. easyFairs will also call up to 1,000 of their contacts and invite them to the show on their behalf and will send invitations to exhibitor’s databases, free of charge.

“We are looking forward to hosting SHOP 2011,” notes Matt Benyon, Managing Director, easyFairs UK. “Every year, we strive to build on the previous shows’ successes and we always try to bring something new and innovative to the table. This year is set to be no exception, with the French Trade Commission being involved for the first time ever. We want to offer exhibitors tailored packages that will help them get the best results plus excellent return on investment from the event.”

To book your stand for SHOP 2011, contact show manager, Lucy Riddett on Tel: +44 (0) 20 8843 8819. Find details at www.shop-exhibition.com.

A key event on the calendar of the food, drink, retail and hospitality sectors, SHOP 2011 takes place from September 27-29 at the RDS, Dublin.

Please visit www.showmeid.ie for all details relating to Show Me I.D – Be Age Ok**. The website is password protected and you will be granted access within minutes of registering.

Have you logged on yet?

In 2010, Ireland’s Leading Tobacco

Company launched a nationwide

youth access prevention programme

aimed at providing one consolidated

solution to tobacco retailers in

preventing the sale of tobacco to

minors*.

Show Me I.D – Be Age Ok centres around a password

protected website, www.showmeid.ie, which is the

source of advice, support and leading practice on how

to avoid underage sales of tobacco. Specifically, the site

includes an interactive module on how to refuse a sale to a

minor and defuse confrontational situations while illustrating

the importance of recording refusals. It also highlights the legal

age for purchasing tobacco and tobacco related products.

The programme will continue to evolve, with other industries

that sell age restricted products being invited to utilise it.

nd’’ss LLLLLLLe

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This initiative is

supported by Ireland’s

Retail Trade Associations

PLEASE NOTE:

* Show Me I.D is a youth access prevention training programme for retailers and their staff. Please keep associated materials out of sight of the general public.

** The information on the website and all associated materials is for general guidance only. It is not legal advice and should not be relied on as such.

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E NOTE:

Tobacco Focus From Ireland’s Leading Tobacco Company

From February 2011, the ‘Show Me I.D - Be Age Ok’ poster began appearing on retail vending machines at point of sale in more than 1,200 retail outlets nationwide. This is a welcome follow on from the official launch last year.

Retail News Interview


DEEP discounting has become the norm rather than the exception on supermarket and c-store shelves across the country, with both branded and own label goods engaging in BOGOFs and other special offers in order to entice cash-poor consumers.

“Value conscious shopping is the biggest trend which has been evident for the last two and a half years,” agrees David Berry of market research experts Kantar Worldpanel, “although we have seen changes over that period.”

In the immediate aftermath of Ireland’s official entry into recession, consumers began to shop around far more than ever before. “There was almost a social aspect to it, whereby people were trying something new, shopping around and enjoying

promotions,” Berry notes. “Now, people have become a bit more consistent in the ways they are searching for value.”

Pressure on Consumer BudgetsOne of the more worrying trends to emerge since the beginning of this year is that consumers are buying less grocery products than heretofore. “Up until the start of 2011, consumers were trying to get their usual things a bit cheaper, maybe by shopping in the discounters, buying promotional lines or private label,” Berry explains. “But now, it seems that people are starting to assess how much they buy, which is a distinct trend and a distinct change in the way they shop. We haven’t seen that until this quarter. There is pressure on consumers’ budgets with

the introduction of the Universal Social Charge, amongst other things, so maybe this is a response to the wave of cutbacks that started in January.”

Many of our bigger supermarket groups have responded with well-publicised promotions, advertising big price drops across a range of goods.

“I think the likes of Tesco and SuperValu are trying to pre-empt people cutting back, promoting the fact that they are trying to help consumers,” he says. “There is a PR element to it as well, getting the message across that they are trying to help cash-strapped consumers by cutting prices.”

However, Berry feels that the reduction in spend on groceries is here to stay. “I think food, drink and groceries in general are a big part of

Where to now for Irish retailers and brands? With consumers increasingly seeking out value offers and cutting back on their grocery spend, what can retailers and brand owners do to fight back? David Berry, Commercial Director, Kantar Worldpanel, has the answers.

Irish Shoppers Focus onValue


people’s disposable income,” he notes. “If your income is reducing, you have to save somehow. The regularity of grocery shopping means that consumers can adapt and change the way they shop from one week to the next, unlike, say, buying a car or a holiday, which is a one-off purchase, so consumers will continue to closely monitor their shopping bills from week to week.”

The biggest losers, when it comes to share of wallet, according to Berry, are “high price items, goods that make up a big part of someone’s shopping basket. If you are buying a bottle of wine at €12 or toiletries at €10, that is a big chunk of what you are spending in that shopping trip, so high ticket items have suffered. In terms of consumer saving, that is where it has been felt the most.”

The Decline of Cross-Border ShoppingSome good news for hard-pressed Irish retailers comes with the fact that cross border shopping is far less of an issue than it was 18 months ago, with Kantar’s most recent figures estimating that less than 10% of households nationwide now shop in Northern Ireland, from a high of 20% at its peak. This can be attributed to a combination of factors, including high petrol prices, the increased VAT rate in the UK and generally lower prices in the Republic.

“All of those factors have made the potential saving a lot less than it would have been before,” Berry notes. “Also, maybe there’s a wear-out factor, whereby it was a novelty for a while but consumers are now tired of travelling so far for their shopping.”

The Rise of Own BrandThe last 18 months has also seen the continued march of own brand, which accounted for 35% of consumer grocery spending in the month to March 20, 2011, its highest ever share in Ireland’s traditionally brand-loyal grocery landscape.

“In the past, for some retailers, own brand was a case of having something on the shelf as an alternative to the brand leaders, without necessarily having the quality or indeed the reason for it being there,” Berry muses. “Whereas now, the standard is much improved. It varies from store to store but the definite trend is that people are buying more own brand because it’s better quality and it does offer value.”

So if I’m a brand owner, who

is seeing my market share being gradually eroded by own brand, what can I do?

“The interesting question that I pose to clients is: what is the reason for consumers to pay more for your product than for a cheaper option?” Berry stresses. “You have to be able to confidently and believably have an answer for that, because if you can’t do it yourself, how are you going to get that message across to shoppers? You need to start with that: the reason why consumers should pay more for your brand.”

The Importance of InnovationInnovation is a key selling point for branded goods, according to Berry: “Shoppers love new products and will try new products. Even during the course of the recession, we have seen consumers who are willing to try new things, so new brands have appeared on the market and have done reasonably well.

“Brands have to be the ones who push innovation, because they’re the ones who invest in it and come up with new ideas,” he continues. “That is one of the key reasons why they can stay ahead of own brand. Suppliers need to look at what they do, in a simple way, and establish what they are doing better this year than last year. Can you concretely say that you’re working better with retailers, have a better product, have more effective promotions? Can you look at those levers and see what you’re doing better than last year and what you need to improve on?”

Once an economy goes into recession, one of the first areas to suffer is often New Product Development. How do you reconcile

that with the need for innovation?“It’s difficult, but I think you have

to adapt,” he explains. “NPD doesn’t have to be about reinventing the wheel: it can be about doing something simply but better than you have done it before and better than your competitors. It can be a new packaging innovation, for example. Brands who are the first to market with innovations, like resealable packaging, get benefit from them. One of the great examples is Avonmore Milk’s EasyPour jug, which is brilliant, and is something that an own brand wouldn’t have come out with.”

Discounters Grow Their ShareGrocery shares fluctuate, month by month, with the multiples and SuperValu gaining or losing relatively small amounts, but the one group who continue to consistently gain share are the discounters, Aldi and Lidl. The fact that both discounters are starting to introduce branded goods alongside their own brand offerings would seem strange in an environment where own brand is gaining such share highs.

“I think it comes back to the fact that Irish people love brands,” he opines. “There are certain categories where brands remain important and always will. The hot beverages category is a perfect example. When it comes to tea and coffee, consumers are incredibly brand loyal: they know the brands they like, they have made that decision and they are going to stick to it. So, the discounters have tried to gain share by bringing in the brands that Irish consumers want.”

One of the factors usually evident in a recession is that value and premium brands tend to grow, while the middle ground tends to lose share.


“The regularity of grocery shopping means that consumers can adapt and change the way they shop from one week to the next, unlike, say, buying a car or a holiday, which is a one-off purchase, so consumers will continue to closely monitor their shopping bills from week to week.”



Berry is not so sure than such an all-encompassing statement is reflected across the FMCG spectrum.

“It is always going to vary from category to category,” he muses. “Sometimes, the middle ground was almost playing the role of private label, before retailers embraced own brand. Traditionally, Superquinn wouldn’t have had a huge own brand range, so they might have had secondary brands to offer shoppers a cheaper option, but they recently introduced their Superquinn Essentials range, which is competition for branded goods across the spectrum.”

He also points out that for a lot of consumers, buying a premium product in-store may mean trading down from something else: “Instead of going out for a meal, a consumer may buy premium food and drink products, which is trading down or economising on the part of the consumer, but is still a premium product for the food supplier and retailer.”

He cites coffee as a prime example: “The premium end of the coffee market, roast and ground coffee, has performed really well throughout the recession. Instead of purchasing a €3 coffee in their local convenience store, maybe consumers are buying a pack of roast or ground coffee.”

Future-Proofing Your BusinessKantar Worldpanel pride themselves on being able to help future-proof your business. So what exactly can they offer retailers and suppliers in the current climate?

“From both a supplier and retailer perspective, it’s about providing guidance on what they should be doing next,” he states confidently.

“We have great information on the current trends and also on what has been done in the past. We know that past behaviour is a great driver of what is going to happen next. The challenge is to use that to try to make sure that our clients’ businesses are fit for the future.”

So how does Berry see the future for the FMCG sector? Once consumers have adapted to the current environment, with the implementation of the Universal Social Charge and other drains on their wallet, Berry feels that there will be opportunities for growth, although he does admit that “It’s difficult to predict exactly when that will happen, however.”

From a retailer’s perspective, the one tried and trusted method of growing is by opening new stores, Berry notes: “Obviously, that growth has to come from somewhere, though, so somebody is going to suffer. The challenge for retailers is to be clever where those stores are. Location has to be key for any new store opening, in

terms of establishing what competition is in the area and what the footfall is likely to be.”

Just because another retailer is operating in a certain area need not be a reason for ignoring it as a potential location, however, as Berry explains: “There have been numerous examples of where two stores offering similar products can work very well together. If you take SuperValu and Lidl, they offer very different things, but they both bring footfall so they can work well together.

“I think retailers should understand and concentrate on what they’re good at. It has worked well for SuperValu in particular: they are experts on fresh and chilled produce and that has worked very well for them.”

So while things are definitely tough in Ireland’s grocery market, there are chinks of light which can be exploited both by brands and retailers: the key is to focus on their strengths.

“What is the reason for consumers to pay more for your product than for a cheaper option? You have to be able to confidently and believably have an answer for that, because if you can’t do it yourself, how are you going to get that message across to shoppers?”

THIS year’s barbeque season is expected to be the biggest yet in Ireland, as more and more consumers embrace the allure of al fresco dining.

With a warm summer predicted, it is anticipated that barbeques, which have been growing in popularity for the last decade, are set to really take off this year, as consumers take advantage of the summer weather, while also watching their pennies and entertaining at home.

The season will kick-start with the seventh Irish National BBQ Week, which takes place from May 30 to June 6. Over the past seven years, National BBQ Week, the annual celebration of Better barbequing, has helped Ireland embrace barbeque culture and despite some pretty appalling summers has also helped increase the number of barbeques held each year, as well encouraging consumers to be more adventurous on the grill. This year’s event continues the ‘Round the World’ BBQ theme with some great BBQ opportunities and for the particularly adventurous, there will be a ‘Round the World in 30 Barbi’s’: barbeque recipes celebrating the diversity of eating al fresco. See http://www.nationalbbq.ie/gastro-alfresco.html for more information.

Bringing the 2010 barbeque season to a finale, the third ‘Have a Better Barbi Day, on Bank Holiday Monday, August 2, will be encouraging grill masters all over Ireland to really get to grips with their barbeques, in the process creating Ireland’s biggest barbeque event yet, while also encouraging consumers to donate money to their favourite local charity.

While sausages and burgers remain the staples of the Irish barbeque, consumers are embracing more variety in their outdoor dining, with prime meat cuts and gastro-grill seafood increasing in popularity all the time, accompanied by salads, sauces and the perennial favourite, the baked potato.

The barbeque season represents a strong sales opportunity for retailers, with commentators valuing the barbeque market at over €300m per year and growing.

The growth of the after-work barbeque has helped sales, although the majority of barbeques in Ireland are still held at the weekend.

Johnston Mooney & O’BrienBundys is the number one brand in the hamburger bun and hot dog roll market in Ireland and is a must stock brand for barbeque shoppers. Baked in their dedicated bun & rolls bakery in Clonee, Co. Meath, their full range of buns and rolls complements almost any barbequed food imaginable and is the ideal roll for all summer outdoor dining. Using unique American style baking methods, the Bundy taste and freshness is designed to bring out the best in all types

of grilled, roasted, and barbequed meats and is the perfect roll for

salads. The Bundy range gives retailers the

opportunity to provide the

consumer with a

full

Summer Stocking: BBQ


With barbeque season upon us, consumers across the country are getting set for serious al fresco dining. Make sure your store isn’t left behind.

The Bundy range gives retailers the opportunity to provide the consumer with a full range of fresh top quality buns and rolls daily.

The

BIGGrill

THE BEST BUNSfor your business


range of fresh top quality buns and rolls daily. The Bundys Range includes: Super Bundys, ideal for quarter pounder burgers, chicken, salads; Bundys Original, ideal for regular beef burgers, chicken, salads; Bundys Seeded, ideal for regular burgers, chicken, salads; Bundys Hot Dog Rolls, ideal for hot dogs and sausages; Bundys Jumbo Hot Dogs, ideal for super size hot dogs and sausages; Bundys Splitz Rolls, ideal for chicken, barbeque ribs, salads.

HJ HeinzHeinz Ketchup is synonymous with taste and what better accompaniment for summertime barbecues than the extensive Heinz Tomato Ketchup range. Boasting a large variety of sizes, Heinz Tomato Ketchup is available in

glass, Squeezy and Top Down formats.

Heinz Top Down Tomato Ketchup, available in 460g, 700g and 910kg sizes, offers the benefits of

an innovative no mess, no waste,

stay-clean cap and

all the taste of

Ireland’s favourite

tomato ketchup.

Heinz Tomato Ketchup is the

number one selling tomato ketchup brand in Ireland with a 58.4% share of the Tomato Ketchup category in Ireland (Source: ACNielsen, March 2011). As part of its Digital and Masterbrand strategies, Heinz has launched a new website, www.IthastobeHeinz.ie which has been specially developed for Irish consumers and has lots to offer, including facts about Heinz brands like Tomato Ketchup, as well as recipes, competitions and a ‘kidz zone’.

BBQ sauce is popular indoors all year round but is also the ideal accompaniment to barbecued foods, making it a household essential in summer months. HJ Heinz, the market leader in BBQ sauce holds a combined market share of 37.1% (Source: ACNielsen, March 2011), across its two BBQ brands, Heinz and HP. There are two BBQ varieties under the Heinz brand, Original and Hot ‘n’ Sizzling, both in the handy Heinz Top Down format.

The HP range of sauces, from HJ Heinz, includes HP Classic BBQ in 250g, glass along with Classic Woodsmoke and Spicy Woodsmoke varieties in a new Top Down pack. Also from Heinz, Lea & Perrins, the original Worcestershire sauce, provides the ideal base for home-made marinades.

Moy ParkWith the barbeque season upon us, poultry giant Moy Park predicts consumers are going to be looking for ways to spice things up this year by injecting some flavour into al fresco dining, by choosing its key products for the barbeque season such as their Moy Park Chinese Chicken Wings, Moy Park Hot & Spicy Chicken Wings and Moy Park Chicken Fillets.

These key Moy Park chicken products, along with other popular Irish staples which are part of the Moy Park family, including goujons, kievs and whole birds, are supported by a fully integrated marketing campaign.

“With the barbeque season fast approaching, consumers are after exciting flavours that taste great and are quick to cook,” said Paul Burch, Moy

Park Commercial Director, Ireland. “Moy Park’s Chicken Wings can be popped on the barbeque straight from the packet and are a must-stock item this summer. For people with more time on their hands, our Chicken Fillets, which come in 500g and 600g options, taste great as kebabs or simply marinated for five minutes, then grilled.

“With these exciting products on shelves across Ireland and a strong media campaign to support them, our customers can rely on Moy Park as ‘the home of Irish chicken’ this summer.”

Moy Park, owned by global food

Super Bundys are ideal for quarter pounder burgers, chicken or salads.

Heinz Top Down Tomato Ketchup offers the benefits of an innovative no mess, no waste, stay-clean cap and all the taste of Ireland’s favourite tomato ketchup.

BBQ sauce is the ideal accompaniment to barbecued foods, making it a household essential in summer months.


Red Curry Chicken Kebabs, made with Moy Park chicken fillets, which come in 500g and 600g options.

company Marfrig, is the biggest processer in Ireland under the ‘Bord Bia’ quality assurance standard and remains focused on delivering high quality, great value products to customers on the island of Ireland, UK and continental Europe. See www.iloveirishchicken.ie for more.

Hellmann’sHellmann’s has a vast range of products for all tastes for barbeque season, with a portfolio range spanning across mayonnaise, salad dressings BBQ Sauce, Ketchup and new additions, Hellmann’s flavoured mayonnaises.

Hellmann’s mayonnaise is the top selling mayonnaise in the Irish market and continues to dominate the market with 85% value share. The popular mayonnaise comes in glass and squeezy formats for consumer convenience, while consumers also have the choice between real, light, extra light and garlic mayo for their BBQ’s.

Hellmann’s have recently launched a new range of flavoured mayonnaises. Available in a handy 235ml squeezy format, there are three varieties to choose from: Lemon, Garlic and Chilli.

No barbeque would be complete without the addition of the Hellmann’s BBQ Sauce. Hellmann’s BBQ Sauce’s tangy taste is a welcome accompaniment to any eating occasion, as is the popular Hellmann’s Tomato Ketchup.

The Hellmann’s range will be supported throughout the summer season with strong in-store promotions, PR and above the line activity. Hellmann’s will also be launching a BBQ specific web-site – so be sure to visit hellmanns.ie for summer recipe inspiration!

Irish PrideThe soft rolls category is one of the key categories in the bread market delivering 5% volume growth this year (Source: ACNielsen, MAT, February 20, 2011). The sector appeals to the consumer as it offers variety and convenience.

Irish Pride claims leadership of the soft rolls category and following a focused approach to sales development, has built its market share to 20%

by outperforming the market with a branded growth of 10.3% (Source: ACNielsen, MAT, February 20, 2011). This success has been achieved through consistently delivering superior quality products to the market.

The Irish Pride range offers consumers both versatility and choice. Their Bunsters burger bun and hot dog roll range is perfect for any barbeque, while the Irish Pride Bap range can be enjoyed as a healthy snack throughout the day. The Irish Pride Bap range includes both the soft textured Floury Bap and the high fibre Healthy Grain Bap.

“At Irish Pride, we are committed to driving innovation and new product development in the bread market,” notes a company spokesperson.

“As part of this commitment, we launched a new line in the Soft Rolls category last year – Irish Pride Sandwich Rolls six-pack. These batched white rolls are smaller in size, making them perfect for school lunchboxes or family picnics during the summer. This product, along with our bap and snack rolls range, addresses consumer

needs throughout the year and helps ensure the soft rolls category appeals and remains relevant despite the weather!”

This summer, Irish Pride will promote their Bunsters brand by featuring the range in our sponsorship of the ‘Breakfast with Hector Show’ on 2fm, as well as introducing new lines to the Bunsters brand to make the range even more convenient to the Irish consumer.

OlhausenWith a whopping 238m Olhausen’s sausages consumed during 2010, it is fair to say that Ireland is a nation who loves their sausages. In celebration of this fact, one of Ireland’s oldest pork producers, Olhausen’s has announced an extensive sampling campaign,

WITH the summer season almost upon us, it’s time for consumers around the country to dust down and clean those barbeques. Killeen Kitchenmate and Easi-clean products are ideal for cleaning the surface and grill of BBQs, ovens, kitchen counter tops and even outdoor furniture.

Kitchenmate and Easi-Clean are tough and durable, suitable for tough jobs inside and outside the home. To increase your sales, why not get these products off the shelf and merchandise them close to the BBQ fuels and foods? Killeen can provide small footprint POS and a full merchandising service.

For more on these products, please contact your Killeen rep, call 041 9870379 or see www.killeenhousehold.ie.

KILLEEN CLEANS UP ON BBQ SEASON

Killeen Easi-clean products are ideal for cleaning the surface and grill of BBQs, ovens, kitchen counter tops and even outdoor furniture.

Retail News|May 2011|www.retailnews.ie|27


The Bunsters burger bun and hot dog roll range from Irish Pride is perfect for any barbeque.

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

which will take place over the course of the next two years.

The massive sampling campaign kicks off in Leinster where Olhausen’s replica Rolls Royce Silver Ghost sampling unit will attend numerous public events between now and the end of June, including Bloom in the Phoenix Park (June 2-6) and Taste of Dublin (June 9-12) . In addition, the

van will be taken along to several supermarkets, where consumers will be given a chance to sample Olhausen’s much-loved sausages.

It is estimated that over 100,000 consumers will enjoy an Olhausen’s in this time alone.

Blue DragonBlue Dragon has recently entered the barbeque sector with a new range of Sticky Sauces, available in four

restaurant-classic variants - Chinese BBQ, Char Sui, Peking and Teriyaki. The range provides consumers with a convenient short-cut to replicating a range of Oriental appetisers at home by basting or marinating, something which the ambient Oriental category doesn’t currently offer. Blue Dragon’s versatile Sticky Sauce range is perfect for barbeque season and creating family-friendly meals in minutes.

Tracy Hughes, Blue Dragon Consumer and Trade Marketing

Controller says; “The summer barbeque season is a key period for Blue Dragon, with sales of our condiments increasing by 18.2% during this time. We know that consumers are becoming more familiar with Eastern cuisine and want to experiment and be more adventurous with their own cooking – whether in the kitchen or on the barbecue – by adding their favourite Oriental flavours to Western dishes. Our Sticky Sauces helps them do just that... giving traditional barbecue or home-cooked food a more

inspiring Oriental twist”.

Blue Dragon’s new range of Sticky Sauces, available Chinese BBQ, Char Sui, Peking and Teriyaki flavours.

LAST November, Bord na Móna Fuels Ltd, the largest supplier of solid fuel in Ireland, launched the revolutionary FireMagic Fire Maker. Building on its great success as an open fire and stove fire starter, FireMagic FireMaker is now available as an innovative product that guarantees the fastest and most consistent BBQ flames within minutes. People can now cook their BBQ dishes, confident in the knowledge that they are cooking in perfect conditions for their BBQ.

The key to FireMagic Fire Maker is that the product is totally kerosene-free, meaning that food that’s cooked on a BBQ retains its natural flavour. Providing a cleaner flavour for food cooked on the BBQ, this new BBQ starter pack is also quick, clean and easy to use, giving it a real advantage over the traditional pile of kindling or BBQ fuel thrown onto the BBQ.

BBQ aficionados know that the secret to a successful BBQ is a consistent and even spread of heat.

In the past, people had to wait almost half an hour before the spread of the flames covered the BBQ, for the smell of kerosene to fade away and for a consistent heat to evenly cook the meat.

With Firemagic Fire Maker, even the most novice BBQ chef can achieve the perfect results first time. This exciting new product, which has performed strongly since its launch in November, comes with the assurance that it will light first time, every time and will create the perfect BBQ flames every time.

With the continued growth in people entertaining at home, BBQs offer a fun and lively alternative to a formal, sit-down meal. ‘FireMagic’ Fire Maker is ideally placed to reach this growing market, providing a hassle-free BBQ starter pack that everyone can use. With lengthening evenings and improving weather, the timing for this

new market leading product couldn’t be better.

In store, FireMagic Fire Maker will be supported by dedicated BBQ packaging, driving awareness and sales and helping to promote BBQ season.

‘FireMagic’ Fire Maker is available through Allegro Distribution on 01 8580600 or Bord na Móna Fuels Direct on 1850 744 755.

FIREMAGIC LIGHTS UP BBQ MARKET

Model Corina Grant is pictured with Freddy Olhausen Snr and Junior at the launch of Olhausen’s extensive sampling campaign, which takes place over the course of the next two years.

FireMagic FireMaker from Bord na Móna guarantees the fastest and most consistent BBQ flames within minutes.


For a nation of crisp eaters.It’s a fact, we Irish love crisps and combined Tayto, Hunky Dorys and

King are the ones we love most. So give the nation what they want and watch your sales grow.


Summer Stocking: Salads & Dressings

WITH the summer season already under way, thanks to the good weather since the end of April, consumers across the country are already reaching for their salad bowls, with huge profit opportunities in the salads, dressings and condiments sector.

The competition within sauces, dressings and condiments intensified in 2010, with few products displayed without a promotional slogan or discount, according to the latest report into the sector from Euromonitor. Promotional offers have become the norm as consumers expect value on every item they buy, especially when it comes to home cooking, as starkly lower prices justify eating at home rather than dining out.

According to figures from Datamonitor, the market for sauces, dressings and condiments in Ireland increased at a compound annual growth rate of 5.1% between 2004 and 2009. Meanwhile, the outlook for the market remains good, according to Euromonitor, who predict that sales

of sauces, dressings and condiments are expected to grow in both retail value and volume terms to reach €211m in 2015.

Hellmann’sHellmann’s has a vast range of products for all tastes, for those great BBQ days out, with a portfolio range spanning across mayonnaise, salad dressings BBQ Sauce, Ketchup and new additions, Hellmann’s flavoured mayonnaises.

Hellmann’s Mayonnaise is the number one selling mayonnaise in the Irish market and continues to dominate the market, claiming a massive 85%

value share. The popular mayonnaise comes in glass and squeezy formats for consumers’ convenience, while consumers also have the choice between real, light, extra light and garlic mayo for their BBQ’s.

Hellmann’s have recently launched a new range of flavoured mayonnaises. Available in a handy 235ml squeezy format, there are three varieties to choose from: Lemon (ideal with fish), Garlic, and for that extra spark, Chilli, and are a must-stock for the summer season.

Hellmann’s also claims leadership of the salad dressings market, with a value market share of 40.5%. The Hellmann’s dressings range includes seven varieties, which are

Hellmann’s Mayonnaise is the number one selling mayonnaise in the Irish market and continues to dominate the market, claiming a massive 85% value share.

Salad Days are Here Again

Salads, dressings and condiments are big business in the summer months, as consumers embrace lighter, healthier meal options.

Summer Stocking: Salads & Dressings

firm Irish favourites, including Caesar, Italian and Balsamic. Hellmann’s Salad Dressings will be supported in-store with strong promotions throughout the summer season.

No barbeque would be complete without the addition of Hellmann’s BBQ Sauce. Hellmann’s BBQ Sauce’s tangy taste is a welcome accompaniment to any eating occasion.

Hellmann’s Tomato Ketchup is another must have. Full of tomatoey goodness, Hellmann’s ketchup is a must have on your BBQ table this summer.

The Hellmann’s range will be supported throughout the summer season with strong in-store promotions, PR and above the line activity.

Hellmann’s will also be launching a BBQ specific web-site –visit hellmanns.ie for summer recipe inspiration!

Lakeshore FoodsConsumers can savour the flavour of Lakeshore Salad Dressings, from Boyne Valley Group, this BBQ season.

Using only the best ingredients and made to traditional recipes, Lakeshore accompaniments bring food to life.

Consumers can dress up salads with the delicious range of Lakeshore Salad Dressings – the ever popular Honey & Mustard dressing, a premium Caesar dressing, Italian dressing, French style Vinaigrette, and Thousand Island.

All Lakeshore products are made with the finest ingredients and come in an eclectic range of flavours. For that perfect barbeque, Lakeshore will help to make a lasting impression in an instant.

Don Carlos Also from Boyne Valley Group, Don Carlos is Ireland’s

favourite brand of Spanish foods, renowned for quality and flavour. Don Carlos

Olive Oil and range of Olives are sourced from the finest olive groves in the heart of the Andalucian countryside.

Don Carlos Olive Oil is a completely pure and natural product. Scientists and dieticians agree that Olive Oil is a healthier alternative to other oils and fats as it is cholesterol free.

The olive tree plays a very important role in the Mediterranean diet. A number of factors combine to form the perfect growing conditions and it is in southern Spain where these conditions are at their best. Don Carlos olives are handpicked during the harvest season between September and October.

This summer, Don Carlos is offering consumers the chance to win one of five trips

to visit him at his Hacienda in Seville. This is an on-pack consumer promotion and will be driven by heavyweight above-the-line and below-the-line activity. A dedicated television campaign runs until June, supported by on-line activity.

HJ HeinzSummer is here and the HJ Heinz portfolio boasts a large range of dressings and accompaniments which are ideal for

salad days. Heinz

Salad Cream has been popular with generations of Irish consumers, offering lots of choice, with both regular and light varieties. The extensive range of Heinz Salad Cream is available in glass and squeezy packs and also in a 460g Top Down. The Heinz Salad Cream range also includes the highly successful Weight Watchers from Heinz Salad Dressing.

The Heinz Mayonnaise range includes regular and light varieties in a handy Top Down 420g pack. The Heinz range of Deli Mayos are ideal to add extra zing to a salad or sandwich, with delicious varieties including Roasted Garlic, Sundried Tomato and Caramelised Onion.

Heinz Baby Beetroot, Crinkle Cut Beetroot and Silverskin Onions are all available in 440g jars to add that extra zing to salads. The range of Heinz Pickles

are ideal to add extra zing to salads, with an extensive range including Ploughmans, Piccalilli, Mild Mustard and Tangy Tomato.

The ever-popular Honey & Mustard Dressing, part of the delicious Lakeshore Salad Dressings range.

Heinz Salad Cream has been popular with generations of Irish consumers, with its 460g Top Down format proving a real winner.

This summer, Don Carlos is running a superb on-pack promotion offering consumers the chance to win one of five trips to Seville.

Hellmann’s Light Mayonnaise: hugely popular with Irish consumers.


Equipment Asset Finance

There’s big news from McCain, Ireland’s biggest brand in Frozen Potato, with its huge 68% value share of the frozen oven chip market,

and its 30% value share of the prepared potato market.*

For starters, McCain Foods’ distinctive new brand identity is coming your way this month. It’s going to add a real wow factor to McCain packs and brighten up freezers across the country. This new look retains all the key McCain elements. What’s been added is a stylised rural landscape, showing the sun as it rises. These striking new packs will deliver a stronger in-freezer presence.

Home Fries, the number one selling frozen chip in retail, has been re-named McCain Home Chips. And McCain are also adding NEW Mexican Wedges to the range. Perfect for barbecues, parties or side of plate, expect these to become a hot favourite.

What’s more, massive advertising support means you’ll see McCain everywhere over the next few weeks-TV, radio, outdoor posters and, most importantly, in shopping baskets!

Big News From McCain

* (AC Nielsen Scantrack, January 2010)

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You can assist us in combattingthis threat by contacting the new confidential freephone:

1800 295 295


Summer Drinks: Wine

FIRST of all on a positive note, let me point out that market for wine in Ireland has finally returned to growth figures. After two years of falling consumption -3.9% in 2008 and -6.8% in 2009 the figures to December 2010 show that the total market for wine grew by 15%, returning the market to its 2007 peak level of 8.7m cases (Source: Government Clearances).

Sales in Ireland have increased overall during 2010, largely because of the 2009 decrease in Excise Duty. The Government had increased duty on wine in 2008, resulting in a huge increase in cross border trading. The repatriation of this lost cross border business has had a positive impact on the wine sector as evidenced by the growth in 2010. Recent figures indicate that within the off trade sector, volume sales of wine were up by 12% (Source: ACNielsen).

The fact that the market is back in growth means saving some jobs in the short term, but overall, it is

still not a rosy picture. The emphasis continues on downward pricing as the availability of consumer spend declines because of increased personal taxation, levies and the upward trend in the cost of living. Most of the leading brands have seen declines in value sales, as the cash-strapped Irish consumer looks for cheaper alternatives and now expects to find deals across all sectors. The increase in volume sales looks less impressive when discounting is taken into consideration, as margins are squeezed and the income return declines.

As we approach the summer months, it is vital to the industry that this return to growth continues. As consumer habits change and “cocooning” (staying in or home entertaining) becomes the new marketing buzz word, the retail industry must continue to focus on wine styles that appeal and make sure there are plenty of good price/quality offers in all categories.

The increased number of off licences organising consumer wine tastings or incorporating and participating in food and wine events, is very noticeable. Any retailer worth his salt is engaging his customer and highlighting offers using websites, Twitter and Facebook to interact. Now more than ever, promotion through education and customer interaction to build relationships and maintain loyalty with existing customers has to be the focus.

As the season changes from spring to summer, the styles of wine stocked on the shelves will change too. The European producers usually launch their new vintages and new wine ranges in spring and many New World producers travel to Dublin in May after the London Wine Fair to highlight their wines, a prime example being the Australian Wine Fair in Croke Park on Monday, May 23.

So what is the style for summer drinking? More white and rosé wines

The Vine InspirationJean Smullen looks at the wines set to soar this summer.


Summer Drinks: Wine

for a start. Fruit forward red wines with less tannin and more sweetness. Here are a few examples from both the “Old” and “New” World worth considering for your shelves.

Cassidy WinesSince 1930, Mouton Cadet has been renowned for its exacting standards and audacity. The wines are the result of an encounter between an exceptional terroir and the passion of Baron Philippe de Rothschild. Mouton Cadet

has become the worldwide reference for Bordeaux Appellation d’Origine Controlee wines. Mouton Cadet wines are distributed in Ireland by Cassidy Wines and sell at €12.99 per bottle and promoted at €9.99 per bottle.

Also from Cassidy Wines comes new Gallo Family Vineyards Summer Red, the latest addition to the E & J Gallo Winery portfolio - specifically created to enjoy chilled, making it the first of its kind in the Irish market. Light, fruity and refreshing, this wine has flavours

of raspberry, pomegranate, and cherry, with a lower alcohol content of 10.5%.

E & J Gallo Winery will also launch Gallo Family Vineyards Merlot Rosé this summer, as part of their ongoing focus on the rosé category. This

exciting new varietal is the perfect wine to enjoy with friends on any occasion, from a casual night-in to a picnic on a lazy summer’s day.

The launch of Summer Red and Merlot Rosé will be supported

Since 1930, Mouton Cadet has been renowned for its exacting standards and audacity.

2011 Dona Paula Los Cardos Sauvignon Blanc, RRP €9.99 (Edward Dillon & Co.)Argentina is bubbling under at the moment. It has not quite made the impact here that it has in places like the UK and USA but expect that to change in the coming years. The fruit for Dona Paula comes from Mendoza, from 44 acres in Tupungato. This is a fresh, attractive Sauvignon, well priced with lots of lemon/lime fruit: one for the wine enthusiasts.

2009 Black Tower Riesling Rheinhessen, RRP €9.35(Gleeson Incorporating Gilbeys)Gleeson Group held their portfolio tasting recently and there were lots of really good wines to taste, and some I had forgotten, including this one. Black Tower has a whole new range that includes Pinot Grigio and Rosé, as well as a brand new Black Tower Merlot from Chile. This wine hails from Germany. It does what Black Tower does best, a very well established brand made from a grape that should have more recognition. This was off dry but the Riesling character shone through with the acidity, giving it a lovely lift. Worth taking another look at.

2009 Blossom Hill White Zinfandel, RRP €8.99(Gleeson Incorporating Gilbeys)This is in fact a Rosé Wine; White Zinfandel is what they call Zinfandel that has been vinified as a Rosé. The USA has overtaken France in 2010 for third place (behind Chile and Australia), with the market for USA wines up by +5.4% in 2010. Mostly USA means California and mostly it means Rosé or white wine made from Pinot Grigio. Blossom Hill is one of the big name brands and a must stock for summer. This is a good, commercial, sweeter style Rosé that will go well with spicy food.

Gallo Summer Red, RRP €8.49(Cassidy Wines)Staying with California, Gina Gallo came to Dublin in March 2011 to launch this new wine on the market. Chock full of fruit, this tastes literally like blackcurrant juice with alcohol. Lots of fruit, some residual sugar, and the big selling point are that it has a relatively low ABV of 10.5% so it will be good for parties. A light, easy drinking wine made from a selection of red grapes, this is a wine that will appeal to the female consumer who likes to drink Rosé.

2009 Bodegas Borsano Garnacha Campo Castillo, RRP €8.50 (Searsons Wine Merchants)Another portfolio tasting this spring with lots of new and exciting wines from the Searsons catalogue. This Spanish wine I liked: Garnacha (or Grenache) is Spain’s great workhorse grape, grown extensively in Southern France, and makes for lighter styles of red wine. This is great value: a “quaffing” wine at a great price. Really worth a look.

2009 Torres Natuero, RRP €6.95(Findlater Wine & Spirit Group)For the designated driver, there is a great new alcohol-free wine worth a try. Torres, one of Spain’s best known wine names, have created a wonderful new product called Natureo which not only tastes fantastic but is also low-calorie (only 22 calories per glass). Using the very aromatic Moscatel grapes, this wine is made through a complex and costly process of vacuum de-alcoholisation. This process causes the evaporation of the alcohol of the wine, leaving approximately 0.5 % alcohol while conserving the aromas, the anti-oxidants, vitamins and mineral salts of the grape. The result is a wine with flavour, aroma, and body but with minimal alcohol.

Summer Wine Styles Under €10

Mouton Cadet, distributed by Cassidy Wines, has become the worldwide reference for Bordeaux Appellation d’Origine Controlee wines.

Summer Drinks: Wine


by an integrated communications campaign, including PR, events, interactive brand experiences and sampling activity, which will run for the duration of Summer 2011.

In addition to this, the brand will be driving activity with the Barefoot portfolio, which includes Pinot Grigio, White

Zinfandel and Merlot, joining the line up at music festivals like Sea Sessions in Bundoran, June 24-26, and Castlepalooza in Tullamore, July 30-31, while Barefoot can also be sampled

at the Taste of Dublin Festival, June 9-12.

Barry & FitzwilliamMichael Barry of Barry & Fitzwilliam claims that they now have probably the most successful prestigious French wines on the market when you take account of the success of Michel Lynch and Guigals wine. The La Chasse range from the Rhone Valley adds to their armoury of French wine and has a superb price/quality ratio, while Faiveley Burgundy Wines, Jolivet Loire Wines and Preiss-Zimmer

Alsace wines complete what is now an outstanding portfolio of French wine.

From Germany, Blue Nun is still an old favourite and will be heavily promoted by Barry & Fitzwilliam over the summer, offering a litre bottle for the price of 75cl.

According to a recent ACNielsen report, Australia’s McGuigan is now the fifth largest wine brand in the market. The Black Label range comprises of a Cabernet/Merlot, Shiraz, Merlot, Chardonnay, Sauvignon Blanc, Pinot Grigio, Rosé as well as McGuigan Black Label Sparkling Chardonnay and Sparkling Rosé. The range will have strong above the line marketing support, particularly in national press.

Brown Brothers wines have garnered a fantastic reputation from wine writers the world over and are very popular with the Irish consumer. Brown Brothers Chenin and Tarrango represent fantastic value.

The great Thomas Hardy legacy lives on today at The Hardy Wine Company. B&F’s major emphasis will be on the promotion of Hardy’s Stamp litres for the price of 75cl. The Hardys Bin Range will be used as a promotional price offering.

Paul Masson is one of the great success stories from California in the last number of years. Distinctive by its Carafe shaped bottle, the Red,White and Rosé litres retail around €10.

After over 40 years, Robert Mondavi Winery still embodies its founder’s commitment to excellence, innovation and creative spirit, while continuing to produce wines that stand in the company of the world’s finest. The Woodbridge range will be promoted aggressively.

From South Africa, the Kumala range has long been a favourite with Irish consumers, while B&F also carry the Boschendal range, one of South Africa’s iconic wineries, including Boschendal Pavillion, bringing the brand into the value for money category.

A family owned New Zealand winery. Villa Maria has been New Zealand’s leading wine award winner, both nationally and internationally since the early 1980s. The price

repositioning of the Private Bin Range has seen sales surge recently.

Nobilo are a well-priced range of excellent quality wines from both the North and South Islands. Included in the range is the entry level White Cloud.

B&F expect a lot of interest around New Zealand because of the publicity running up to the Rugby World Cup, which should help to drive sales.

Mont Gras, a former “Chilean Producer of the Year”, continues to grow strongly. B&F will be offering activity across the full range from entry level Blends at €6.99 to the fantastic Reserva at €11.99, while the Soleus range of Organic Wine produced by Mont Gras is also going from strength to strength.

From Spain, Beronia Rioja wines from Gonzalez Byass and Raimat from Penedes are two exceptional ranges which have developed a cult following here and the

Altozano range of varietal wine continues to make steady headway.

Mont Gras, a former “Chilean Producer of the Year”, continues to grow strongly in Ireland.

Perrier Jouet Grand Brut, RRP€51.00(Irish Distillers/Pernod Ricard)We are now in the season for communions, BBQs, end of exams and summer parties, so what better way to celebrate than with a bottle of French Champagne? The Grand Brut Perrier Jouët Champagne is non vintage Champagne. It is made from a blend of three grapes (20% Chardonnay, 40% Pinot Noir and 40% Pinot Meunier), which means that its ‘style’ is light and elegant and very ‘dry’ (Brut). Founded in 1811 by Pierre Nicolas Perrier and Adèle Jouët, what better wine for summer celebrating than a champagne that celebrates a 200 year heritage in 2011?

For That Special Occasion

Gallo Family Vineyards Summer Red: specifically created to enjoy chilled, making it the first of its kind in the Irish market.

New Gallo Family Vineyards Merlot Rosé: the perfect wine to enjoy with friends on any occasion.

Summer Drinks: Wine


Moving to Argentina, B&F have the Santa Julia/Zuccardi range in their portfolio, with excellent wines at all ends of the spectrum, and have a fantastic price/quality ratio. At the top end, Zuccardi Zeta is an absolute wow. B&F will be promoting the Reserve range with a litre for the price of 75cl.

B&F have three champagnes, including Pol Roger, with their popular Rosé, Charles Heidsieck and Piper Heidsieck. Another sparkler, Codorniu, which has a range of styles for every pocket, continues to perform very well.

B&F have a very strong line up in the Fortified Wine Sector, including Harvey’s Bristol Cream Sherry, Croft Original Sherry, Tio Pepe Sherry,

Cockburns and Taylor’s Port.

Also from B&F comes Echo Falls Spritz, in 250ml bottles in two varieties: Chardonnay (white) – zesty and refreshing with a light sparkle and subtle lemon-lime fruit flavours; and White Zinfandel (Rosé) – lively and refreshing, with a light sparkle and bursting with sweet summer berry fruits.

Findlater Wine & Spirit GroupFindlater Wine & Spirit Group have

a host of wines which are perfect for summer drinking, especially

with the barbeque. The range includes Torres Celeste, a spicy wine brimming with fruit, body and colour from Torres’ high-up vineyards in Ribera del Duero. Torres Celeste is an intense blackberry colour and has a spicy and intense nose, with liquorice and black pepper hints over a base of well ripened fruits (blackberry and cherry).

A tasty addition to any barbeque is Torres Coronas, a juicy

wine made from 86% Tempranillo, while Torres Sangre de Toro, made

from the traditional Spanish varieties of Garnacha and Cariñena, is one to have on hand all summer long. This is a savoury crowd-pleaser with an exuberant nose of spices and blackberries and rich Mediterranean aromas, whose characteristics will not be lost in the boldness of a smoky barbeque.

Gleeson Incorporating GilbeysBlack Tower, one of Ireland’s most popular wines, has unveiled a sleek and stylish new look for the brand’s range of award-winning wines. The distinctive black ceramic bottle has been replaced with a unique and dramatic design that now reveals the wine itself. The new ‘half and half’ designed bottle features a clear lower half that lets the wine varietal shine through, while the upper half retains its iconic black colour. Despite

the modern make-over, the look still remains completely, unmistakably Black Tower!

As well as unveiling their new bottle design, Black Tower has also introduced a new Chilean Merlot to their range. Created by passionate and experienced Chilean winemakers in Valle Central, this wine is deliciously soft and fruity, with typical Merlot characteristics. The result is a smooth, easy drinking Chilean Merlot full of ripe, juicy black cherry fruit flavours. Black Tower Chilean Merlot is perfect with grilled meat, barbeques or tomato-based pasta dishes.

Other wines available in the Black Tower range include: Black Tower Rivaner, Black Tower Riesling, Black Tower Pinot Grigio and Black Tower Rosé

New Black Tower Chilean Merlot: deliciously soft and fruity, with typical Merlot characteristics.

Pink by Yellowglen NV Australian Sparkling Rosé, RRP€14.39(Edward Dillon & Co.)Where would we be without bubbles for a summer party? Pink by Yellow Glen is a lively wine with a distinctive light pink colour. Made from 78% Chardonnay, 20% Pinot Noir and 2% Shiraz, this has lots of summer pudding flavours with a relatively low ABV of 11%. Great to recommend as a price competitive alternative to Prosecco.

2010 Montepulciano d’Abruzzo Il Bucco, RRP €11.50(Searsons Wine Merchants)I met Angelo Ruzzi, who owns Zaccagnini, at the Searsons tasting. He is a captivating guy and his wines are amazing. Quite frankly, this is one of the best value wines I’ve come across

from a price/quality perspective. An IGT wine, it has lovely ripe red fruit and a good structure. Modern stainless steel wine making a fresh fruity Montepulciano d’Abruzzo, with soft, easy, ripe fruit: great for summer BBQs.

2007 L’Ostal Cazes Estibals, RRP €15.99(Barry & Fitzwilliam)Jean Charles Cazes of Chateau Lynch Bages came to Dublin recently to show off his range of fine wines. 30% Syrah, 35% Grenache, 35% Carignan, this is a classic blend from this part of France. Hand picked fruit, with a long fermentation before 12 months ageing in French oak, the Shiraz shines through. This is a classic Southern French red: throw a steak on the grill and go!

Summer Wine Styles Over €10

Torres Sangre de Toro, made from the traditional Spanish varieties of Garnacha and Cariñena.

Torres Celeste, a spicy wine brimming with fruit, body and colour from Torres’ high-up vineyards in Ribera del Duero.


Summer Drinks: Spirits

THE last year has been something of a relief for the spirits sector, after the tough year that was 2009. Price and value for money remain top of mind with consumers, with branded spirits on special offer performing extremely well in value terms, as Irish consumers continue to favour branded over non-branded goods when given the choice, according to the latest report into the sector from Euromonitor International. Indeed, Euromonitor predict that volume sales will recover before value sales between now and 2015.

Despite the difficulty of the home market, however, the Irish Spirits Association report that exports of Irish spirits remain consistent in the midst of some of the toughest trading conditions the industry had ever seen, which is good news for the big Irish brand names in the years ahead.

Many of the biggest names in the sector are actively promoting their brands over the summer season as

key cocktail and long drink ingredients. With the expected proliferation of barbeques and the continued growth of the off trade in general, this summer could be a bumper sales period for spirits sales, if they are marketed correctly to consumers.

Diageo IrelandThree of Diageo Ireland’s leading premium spirits brands, Smirnoff Vodka, Captain Morgan’s Original Spiced Gold and Gordon’s Gin, have teamed up to offer a great promotional programme for the off trade this summer, ‘Start the Night in Style’.

Smirnoff is the world’s number one premium spirit brand (Source: Impact Databank, 2011), while Captain Morgan’s has enjoyed phenomenal 310% growth in the last 12 months and Gordon’s has grown by 78% in the

The ever-popular Smirnoff brand, part of Diageo Ireland’s ‘Start the Night in Style’ promotion.

Both Captain Morgan’s and Gordon’s Gin are enjoying massive sales growth across the country.

The Spirit of Summer Cocktail fever is set to sweep the country as the weather heats up, with an attendant rise in spirits sales.

The summer opportunity

Boost summer sales with spirits

3

4

4

For more information, please contact your local Diageo representative.

Start the night in style

With consumers looking for the perfect affordable drink to start the night in style at home this summer, Diageo premium spirit brands SMIRNOFF® Vodka, CAPTAIN MORGAN® Original Spiced Gold and GORDON’S® Gin have teamed up to offer a great promotional programme for the off-trade…

¹ Tangible Eye Tracking Research (09 and Sept 10) ² Diageo Internal Research (10): The sale of 12 bottles of SMIRNOFF 70cl and 12 mixers generates 58% more cash than sales from 12 bottles of wine. 3 Impact Databank (11) 4 Nielsen Scanning Data (Jan 11) 5 Diageo Internal EPOS Information (10)


Summer Drinks: Spirits

last three months alone (Source: ACNielsen, Scanning Data, January 2011).

According to Diageo, off trade consumers increase their alcohol consumption across the summer months (Source: Tangible Eye Tracking Research), with huge profit potential for retailers, particularly in terms of long mixed drinks, which can increase your profits by more than 50% (Source: Diageo Internal Research, 2010). When spirits are placed on the floor, sales can grow by 23%, according to Diageo Internal EPOS information, and Diageo are offering retailers ‘Start The Night In Style’ display stands, along with supporting POS, to drive sales of these three hot brands.

Barry & FitzwilliamBarry & Fitzwilliam distribute a wide range of premium spirits brands, including Teachers Scotch, Courvoisier Cognac, Rémy Martin Cognac, The Famous Grouse Finest Scotch Whisky, Jim Beam Bourbon, Vladivar Vodka, Boru Vodka and Stolichnaya.

Cointreau is a cool experience on ice, with a warm afterglow,

surrounded by the exotic scent of oranges, while maintaining its elegant French heritage.

Many of the unique flavours of Bols liqueurs, also from B&F, are made with fruit juices, thereby creating the ideal platform for some of the best cocktails around. The selection of flavours available from Bols is vast and includes Bols Blue, Grenadine, Advocaat, Crème de Cacao, Cherry Brandy, Amaretto and many more. A new addition to the range that is doing very well is Bols Natural Yogurt and B&F have recently added Bols Foam to the range.

Sourz continues to be a great success. It has a unique, dual sweet & sour flavour that is both refreshing and tangy. Sourz apple is a low-strength (15%) shooter brand that is taking the clubs and style bars by storm. Look out for Sourz Cherry and Sourz Pineapple.

Jagermeister, the famous German schnapps, is a huge seller in the shooter market, particularly

among trend setters, and is growing internationally. A half-bitter German schnapps with a unique blend of 56 herbs and spices, sales are rising dramatically.

Two of the most exciting brands that have been added to the B&F portfolio are Tia Maria and Disaronno. Tia Maria is a hugely popular coffee liqueur worldwide, particularly for its mixability in cocktails, with coffee or in desserts, or mixed with milk and ice as a luxurious long drink. It is being heavily backed by the TV campaign “Get Behind the Mask”. Tia Maria will also be sponsoring two masked balls for charity during the summer.

Disaronno is described as a ‘cool’ brand. With its distinctive square glass decanter and smooth almond flavour, it has a secret recipe which is said to include the pure essence of 17 selected herbs and fruits, with an infusion of apricot kernel oil. It is a very “hot brand” in the UK off trade and B&F are hoping to emulate that here.

Powers 12 Year Old Special Reserve, from Irish Distillers Pernod Ricard, recently won a Double Gold Medal at the prestigious San Francisco World Spirits Competition 2011. The oldest, largest and most recognised spirits competition held in the United States annually, the 2011 event saw a record breaking 1,106 premium spirits submitted from 61 countries.

“Powers 12 Year Old is a wonderfully unique, full bodied whiskey, a very special, premium edition of Powers Gold Label,” noted Suzanne Lawlor, Senior Brand Manager for Powers Whiskey. “Our whiskeys are world class, but it’s a real achievement to earn the highest recognition from leading industry experts in such a prestigious competition.”

Powers 12 Year Old Special Reserve has that Irish characteristic, strong pot still presence, accounting for its classic Powers spicy, honeyed, full bodied flavor. Aged solely in American oak barrels, the extra time in wood transforms it, giving it an extra maturity, subtlety and softness. Powers 12 Year Old achieved its double gold accolade through a blind, consensual judging procedure from a panel of 33 prominent spirits connoisseurs. For more information on Powers Irish Whiskey, visit www.powerswhiskey.com.

Powers Lifts Top Award

Disaronno, in its distinctive square glass decanter, is an extremely hot brand in the UK off trade, with Barry & Fitzwilliam planning emulate its UK success here.

EXPERIENCETHE EXTRAORDINARY

TEAHUPOO, TAHITIFrench Polynesia.

An expert surfer rides one of the world’sbiggest waves, known as Teahupoo.


Summer Drinks: Soft Drinks

IRELAND’S convenience store network is the envy of most of Europe, in terms of the range of products and services available to consumers and the number of such stores in the country continues to increase rapidly. According to Euromonitor, the presence of so many c-stores has helped to boost sales of soft drinks, which are often bought on impulse while on-the-go, especially by younger consumers who are leading increasingly hectic lives.

While multinational brands are hugely popular in Ireland, with Coca-Cola celebrating 125 years here, Irish consumers continue to show a strong preference for domestically produced or owned brands. For example, within bottled water, domestic brands such as Ballygowan and Deep RiverRock lead sales at the expense of international brands like Volvic and Evian.

Soft drinks growth rates are expected to remain relatively stable over the coming years, according to Euromonitor, with rising demand for healthier beverages, especially within bottled water and functional drinks, fuelling sales. Demand for carbonates, while remaining strong, is expected to drop somewhat thanks to the growing popularity of healthier beverages within areas like bottled water,

due to rising consumer awareness of the importance of water consumption and the introduction of new innovative flavours. Indeed, rising obesity levels and government campaigns have helped to fuel demand for healthier beverages and fruit, whilst functional drinks are also performing strongly due to rising demand for drinks with energy giving properties.

M&D LtdOKF Aloe Vera King drink (Boisson al Aloe Vera) is a Premium Natural Aloe Vera drink containing 30% Aloe Vera juice. Aloe Vera is known to help to detoxify the body and cleanse the colon. OKF Aloe Vera has no artificial colourings, no artificial flavours, no preservatives and no fat.

“With Over 500m bottles sold, OKF is the hottest selling aloe vera drink in the world,” notes Mark Dundon, M&D Ltd. “M&D Ltd have been eagerly awaiting the

Soft Landing

Soft drinks remain one of the most valuable categories in-store, particularly during the summer season.

OKF Aloe Vera King drink is a premium natural Aloe Vera drink containing 30% Aloe Vera juice, available in a range of flavours.



arrival of the new berry range of flavours in a new round bottle. The launch of the new flavours, which include Cranberry Aloe Drink, Goji Berry Aloe Drink and Acai Berry Aloe Drink will take place in early June and should see the OKF brand go one step further as a premium health beverage.”

Other flavours available are Aloe Vera Original, Aloe Vera Mango and OKF Coconut Juice.

JaffO is the registered trade name for M&D Marketing & Distribution’s range of fruit juices. JaffO first appeared on the market in January 1980 as an orange juice drink in a 250ml tetra pack. It was manufactured in Killeshandra Co-op from juice imported from the Middle East. Early distributors included Deasy’s of Cork and Clada Mineral Waters of Galway, while M&D were granted the distribution rights in the Dublin area. It was the first tetra pack drink on the market and was perhaps a little before its time, as only M&D

achieved a reasonable sales volume. The M&D volume alone could not sustain production and so the product lapsed towards the end of 1982. However, M&D reintroduced JaffO in the form of a 200ml tetra pack in 1985. It was available in orange, apple and blackcurrant, followed by a 330ml JaffO orange juice can, which has been an ongoing success, and remains the only canned orange juice on the Irish market. Shortly afterwards, JaffO appeared in 500ml PET, initially in orange. Today, the 500ml version is available in 11 different flavours

and two Fairtrade variants, with a new JaffO smoothie on the way.

The JaffO brand can be found in wide distribution throughout Ireland. It is known and trusted by the trade and consumers alike.

The success of Sunkist since it re-launched last year has led to the launch of bigger formats on its two most popular fruit flavours. The international soft drinks brand has created fully sleeved 500ml bottles in Orange and Summer Fruits, following the great success of its existing range of delicious flavours in 330ml cans.

Research has shown that the vibrant, eye-catching packaging, a nod to the drink’s Californian roots, is really popular with its youthful target audience and the

fully sleeved bottles will build on this with an even brighter and bolder pack. The new format will help independent retailers capitalise on the growing popularity of 500ml bottles in the impulse sector.

James Nichols, Brand Manager for Sunkist, commented: “Since we re-launched the brand last year, the response has been amazing. Retailers recognised they could sell a big name brand at a very competitive price and make great profit margins in doing so. It seemed a natural choice to introduce Sunkist 500ml bottles to the market so that independent retailers can offer our brand in a format they sell most of. The new bottle design really stands out on-shelf to encourage shoppers to try it; and alongside the cans and 2-litre bottle, it creates a great value range for retailers to stock to suit all occasions.”

Orange is the flavour Sunkist was built on and the brand’s biggest seller in Ireland and indeed the world. Summer Fruits is Sunkist’s second biggest seller in the Ireland, and as the only carbonated summer fruit product in the market, it was a clear winner to be offered within the new format. Sunkist has a Facebook page (www.facebook.com/sunkistuk) and website (www.sunkist.co.uk) that caters for both retailers and consumers.

Retailers can get their hands on Sunkist through distributors M&D Ltd who can be contacted on 01 4535955 or [email protected].

Club OrangeClub Orange, one of Ireland’s iconic brands and the number one citrus carbonate, is getting a refreshing new look and feel this summer.

Known for its real ‘Orange Bits’ and its thirst quenching hit, Club’s new look and feel conveys its youthful, vibrant and energetic side, while embracing its heritage as one of Ireland’s favourite drinks. Whilst the look and feel of the brand has been

The success of Sunkist since it re-launched last year in 330ml cans has led to the launch of 500ml bottles in its two most popular fruit flavours, Orange and Summer Fruits.

The JaffO 500ml range includes 11 different flavours and two Fairtrade variants.



re-energised, Club hasn’t compromised on the key essentials- real fruit juice, refreshment cues and most importantly its ‘Real Fruit Bits’, which gives Club the ‘taste explosion’ consumers love!

Since Club Orange burst onto the scene back in 1942, the brand has been bringing citrus refreshment to generations of Irish consumers. Club, part of Britvic Ireland’s portfolio of soft drinks brands, has many great flavours which include Orange, Lemon, Diet Orange, Rock Shandy and Apple. See www.facebook.com/ClubOrange for more.

Coca-ColaCoca-Cola, one of the world’s most iconic brands, celebrated its 125th Anniversary in Ireland and across the globe on May 9. On that day 125 years ago, the first Coca-Cola was sold in Atlanta, Georgia. To mark this milestone in Ireland and to thank its loyal Irish consumers, Coca-Cola is launching the ‘Coca-Cola 125 Years Thank You Fund’, a Fund that will grant €125,000 to non-profit community, voluntary and charitable organisations across the island of Ireland.

The ‘Coca-Cola 125 Years Thank You Fund’, which has been developed and will be operated

in partnership with The Wheel and the Northern Ireland Council for Voluntary Action (NICVA), is being set up to thank consumers for their continued loyalty over the years. The Fund has been designed to support projects and initiatives that are having a positive impact on the quality of life of communities on the island of Ireland. A total of 15 grants will be made – ten of €10,000 and five of €5,000.

“Our 125th anniversary is a great day for Coca-Cola and we’re delighted to

celebrate this milestone in Ireland with the launch

of the ‘Coca-Cola 125 Years Thank You Fund’,” said Aedamar Howlett, Country Manager, Coca-Cola Ireland.

“Coke would not be where it is today without the loyal support of our consumers over many years, and we feel that giving a little something back to their communities is an appropriate way to thank them.”

To apply to the ‘Coca-Cola 125 Years Thank-You Fund’, consumers log onto coca-cola.ie to complete an online application form. Applications can be

submitted online up until midnight on June 30.

In addition to launching the Fund, a number of other celebratory activities are taking place in Ireland, including: • A new TV advertising campaign

has been launched which features the song ‘I’d Like to Teach the World to Sing’, which was first imagined in Shannon airport on a forced stopover, as a Coca-Cola creative director saw the frustrations of the grounded passengers dissipate as they shared stories over Coca-Cola in the airport lounge;

• A huge outdoor and TV campaign which 60% of adults will see at least four times a day. These will feature classic images from vintage Coca-Cola advertisements;

• An online and digital campaign featuring a viral retro poster maker which allows fans to upload a picture of themselves to create their very own classic Coca-Cola advertisement;

• To say thank-you, 30,000 samples

of Coca-Cola are being given out in Galway, Limerick, Cork, Derry, Belfast and Dublin.

• A special item to mark the 125th year of Coca-Cola. The ‘Coca-Cola Heritage Bottle’ is a must-have for the many Coca-Cola memorabilia collectors.

The Club range, one of Ireland’s iconic brands, is getting a refreshing new look and feel this summer.

Pictured on the 125th anniversary of Coca-Cola are Aedamar Howlett, Country Manager, Coca-Cola Ireland, with models Orla Murphy and Georgia Salpa.


WHILE manufacturers and distributors have invested huge amounts of money in ensuring that cider is a year-round beverage, is there really any alcoholic drink that screams ‘summer’ more than a cool, refreshing glass of cider over ice? In Ireland, cider invariably means Bulmers, who claim massive dominance of the Irish cider market.

Bulmers LtdApril saw the launch of the new Bulmers Light Pint Bottle onto the Irish market. Eagerly awaited, the launch of Bulmers Light in Ireland’s favourite sized bottle builds on the

success of the Bulmers Light brand, which was launched in Ireland in 2003, and remains the only Light cider on the Irish market.

“Following the successful launches of Bulmers Berry & Pear, we are delighted to add Bulmers Light Pint Bottle to our portfolio,” said Michael Merrins, Managing Director, Bulmers Ltd. “The light category has performed ahead of LAD in recent years, so it makes perfect sense for Bulmers to introduce the iconic Pint Bottle to the Bulmers Light range, strengthening our portfolio and maximising growth opportunities within the category.”

“Our research showed that the Bulmers Light Pint Bottle format would be well received and was very much something that consumers were waiting for, particularly for those who regard the Pint Bottle as such good value. There is of course huge potential in the male market, as men are becoming more calorie conscious - Bulmers Light retains the same ABV (4.5%) as Bulmers Original, but with fewer calories.”

Bulmers is highly active in terms of sponsorship this summer. The Bulmers Live at Leopardstown series returns for eight Thursday evenings this summer, combining the atmosphere of a boutique music festival with the best in horse racing. Sharon Shannon & Damien Dempsey, The Undertones, Cathy Davey, Kila & Paddy Casey, Republic of Loose, The Saw Doctors, Aslan, Horslips and Jamie Lawson,

will all line-up to soundtrack this year’s series of summer nights out with a difference.

New to the racecard is the Bulmers Live at Leopardstown ‘Fashion Rocks’ competition, with one stylish race-goer set to win a ‘Fashion Rocks’ award and a €1,000 shopping package at House of Fraser each Thursday.

Bulmers is also the sponsor of Forbidden Fruit, Ireland’s newest music festival, which will have its inaugural outing in the Meadows at the Irish Museum of Modern Art this June Bank Holiday Weekend on a site that will be constructed in the shape of an apple, immortalising the key ingredient behind Bulmers. The diverse lineup includes The Flaming Lips, Wild Beasts, Erol Alkan, Jape, Battles, Caribou and Jamie XX. Forbidden Fruit offers four distinct entertainment areas, the main aligned to the core Bulmers Original and three tented areas dedicated to Pear, Berry and Light.

This fifth season of the Magners League has proved to be the most exciting to date, with the season’s Grand Final taking place later this month. Finally, Bulmers Ltd announced the sponsorship of Ireland’s largest free summer festival in 2011, the Tall Ships Races 2011, which will take place in Waterford from June 30 to July 3. The event is expected to attract over 500,000 visitors over four days and is anticipated to represent a boost of €35m to the city of Waterford.

Summer Drinks: Cider

Cider, more than any other beverage, is synonymous with summer drinking.

Sparkling Summer Success

Pictured at the launch of Bulmers Live at Leopardstown are (l-r): Rock Horse with Ciaran Conroy, Commercial Manager, Leopardstown; Marcus Goodwin, Sponsorship Manager, Bulmers; Jane Davis, Marketing Executive, Leopardstown; and TV presenter Lottie Ryan.

The Bulmers brand continues to dominate the Irish cider market.


Summer Drinks: Beer

WHILE the on trade is under severe pressure, with consumers increasingly feeling the pinch, the off trade is experiencing a massive boost in sales volumes, as consumers look to economise, going out less and entertaining more at home. For example, 2010 saw beer volume sales decline by 6% over 2009’s figures, but off trade sales grew by almost 7% in 2010.

According to Euromonitor, Diageo Ireland Ltd remains leader in terms of volume share with 54% of sales. The company portfolio includes four of the top six brands – Guinness, Budweiser, Carlsberg and Smithwicks.

In its latest beer market report, the Irish Brewers Association found that total production of beer in Ireland stood at just over 8m hectolitres. The IBA further found that approximately half the alcohol consumed in Ireland is beer, of which lager accounts for 59% of the volume consumed, stout 36% and ale 6%.

Heineken IrelandCoors Light, born high in the Rocky Mountains, guarantees the ultimate in ice cold Rocky Mountain refreshment. Coors Light embodies refreshing possibilities, exploration of the unknown, energy and freedom. All these qualities are found in its birth place, high in the Rockies – the world’s largest natural playground.

Continuing on from the brand’s success story in 2010, Coors Light promises to deliver another strong performance in 2011. Coors Light maintains its position as the number one lager bottle of choice in the on trade and number four lager brand nationally (Source: ACNielsen, February 2011) .

Available in a variety of 33cl bottle and 50cl can formats, Coors Light comes with an ice cold guarantee: the thermochromic Rocky mountain icon turns blue to indicate Coors Light is ice cold and ready to drink. Watch out this summer for the new cold

activated thermochromic glass above the line activity and off trade specific promotions. Keep up to date with Coors Light at www.facebook.com/coorslightireland

Introduced to the Irish market in March 2010 by Heineken Ireland, Desperados is a bottled beer with an edge of Tequila. Enjoying strong growth since its arrival, its unique taste and spirited attitude is helping establish Desperados as Ireland’s most exciting beer.

Brewed in France, Desperados is sure to delight both beer and spirit lovers as it starts out as a refreshing, cold beer and finishes with a lively kick of tequila to really kick start that summer party.

Coors Light will be supported this summer with a spcial offer for consumers, who can get their hands on the new cold activated Coors Light thermochromic glass.

Beer Hits TopGear

With off trade sales continuing to grow, the summer season should prove a bumper sales period for beers, with barbeques and home entertaining set to soar.


Summer Drinks: Beer

Sold in over 20 countries worldwide, Desperados has an ABV of 5.9% and is best served chilled, straight from the bottle, delivering a truly refreshing taste

experience. ‘One for the Head, One for the Tail’ has become the unofficial drinking ritual for Desperados and involves greeting fellow Desperados

drinkers by clinking bottles on the top and bottom before enjoying a taste of liberty. A nod to the brand’s icon, the Iguana. Keep up to date with all things Desperados at www.facebook.com/DesperadosIreland

Tiger, the super premium taste of Asia, comes from the exotic and vibrant Singapore. First brewed in 1932, it has fast become an award-winning brew,

famed for its high quality, distinctive taste and endearing contemporary

Asian spirit. Brewed by Asian Pacific Breweries, Tiger’s distinctive taste comes from its quality ingredients and meticulous brewing process that involves over two hundred quality checks. Originating in the tropics, Tiger is famous for its refreshing qualities. It’s a crisp, natural beer with character that’s got a kick.

As the newest member of the Heineken Ireland portfolio, 2011 is most certainly the year of the Tiger, with lots of exciting above and below the line activations. Tiger beer will be making many appearances over the coming months such as at Deveneys of Dundrum’s Lughnasa Beer Festival in August.

Diageo IrelandStarting this month, Guinness will be running ‘Take Back Your Evenings’, a campaign designed to highlight the occasion of the long awaited stretch into summer through encouraging consumers to celebrate by raising a

Guinness. It’s about the change of seasons - the fact that it’s now time to do something completely different with our evenings and embrace the longer, brighter nights.

The campaign will run in 325 stores in the Republic of Ireland and 100 stores in Northern Ireland, offering consumers opportunities to win prizes that will enhance their outdoor occasions, which become such a prominent part of summer time consumption. The campaign is designed to show consumers that Guinness Draught In A Can is at the heart of these times and can enhance the groups’ get together.

Barry & FitzwilliamCorona Extra is celebrating 21 years on the Irish market this year. It has

grown dramatically in both the on and the off trade over the last few years and the trend already this year is for more of the same.

Corona is currently backed by an intensive radio, press and poster campaign with the theme, ‘Experience the Extraordinary’, and will sponsor the Corona Cork Film Festival and the Corona Fastnet Short Film Festival again this year.

The 12 pack for the off trade has really helped its visibility in this sector. “We anticipate good growth in our overall Corona sales for 2011 in a market that is sluggish,” noted Michael Barry, MD, Barry & Fitzwilliam.

This summer will see the launch of Ginger Joe, alcoholic ginger beer with an ABV of 4%. It is produced by Stones, who are famous for their Ginger Wine. With the theme being “refreshingly feisty”, B&F are expecting strong sales in 2011.

Introduced to the Irish market in March 2010 by Heineken Ireland, Desperados is a bottled beer with an edge of Tequila.

This summer sees the launch of Ginger Joe, an alcoholic ginger beer with an ABV of 4%.

Corona Extra is celebrating 21 years on the Irish market this year and is enjoying strong sales nationwide.

‘Take Back Your Evenings’ is a new campaign designed to highlight the occasion of the long awaited stretch into summer through encouraging consumers to celebrate by raising a Guinness.

Tiger’s distinctive taste comes from its quality ingredients and meticulous brewing process that involves over two hundred quality checks.


RETAILERS can save up to 75% on their annual energy costs by switching to a Daikin Conveni-pack or ZEAS system. This message was delivered loud and clear at Daikin’s ‘Refrigeration Days’ conference, held at the company’s European headquarters at Ostend, Belgium.

“We will not sign off on a job unless there is a payback period of three years or less,” explains Liam Kirwan, Technical Sales, Daikin Europe NV, Ireland Office. “Every project we work on is designed by Daikin directly, working with the installer, to tailor-make a system for each store. We work out a pay-back period, based on traditional refrigeration and air-

conditioning pack systems, so every single installation we work on is going to pay for itself within three years, maximum, and many pay for themselves within a much shorter time-frame.”

A Brief History of DaikinDaikin has a strong track record in heating/cooling systems. The company is headquartered in Japan, and the European arm was established in 1973 in Ostend, Belgium, where it has grown into the most advanced plant of its kind in Europe, with over 150,000 square metres of production and administrative space dedicated to manufacturing state-of-the-art

residential, commercial and industrial heating and cooling solutions.

Daikin’s track record includes a long list of industry innovations. Their VRV (Variable Refrigerant Volume) technology revolutionised the market in 1982 and continues to lead the industry after 25 years and three generations of VRV systems. It represents the absolute top in comfortable and efficient climate control for commercial facilities. Breakthrough innovations such as VRV III and VRV Heat Recovery systems have enhanced comfort while saving even more energy than previous VRV generations.

Daikin Europe NV’s recent Refrigeration Days conference in their European Headquarters in Ostend, Belgium, highlighted the potential savings to be made by switching to a Daikin Conveni-pack or Daikin ZEAS refrigeration/air conditioning system.

Refrigeration

Cool Savingsfrom DAIKIN

Daikin’s European headquarters in Ostend, Belgium, has grown into the most advanced plant of its kind in Europe.


Refrigeration

“We have been providing heat pumps since 1924,” Liam says proudly. “We run a full training centre at CityWest, where we offer full training to all dealers/installers, and all technical information is available directly from Daikin. When a customer purchases a Daikin system, they have the security that we have been around for a long time and will be around for a long time to come.”

Retail Solutions: Conveni-packDaikin’s premium system, developed specifically for the retail grocery trade, is the ultra-efficient Conveni-pack range, which integrates refrigeration, heating and cooling systems. This award-winning solution offers optimum efficiency, installation ease and noise control. Heat recovery and inverter control allow the Conveni-pack to provide an increase in efficiency of up to 60% during winter months and 20% during the summer months, with yearly average savings of up to 50%, depending on regional climate.

“The Conveni-pack is an integrated system that will provide high temperature and low temperature refrigeration, all your heating and cooling needs and from this year onwards, we will also incorporate hot water production,” notes Liam Kirwan. “When you have your air-conditioning in heating mode, you are basically getting free heating and free hot water, because we recover the thermal energy from the refrigeration units, and re-use that energy to heat the shop, through the air conditioning units, and to heat water to 45 degrees Celsius, which is ideal for washing and cleaning.”

Conveni-pack is designed for small and medium-sized shops and

convenience stores, with more than 2,000 of these systems in operation around the world. The system can be easily expanded to meet the needs of the retailer. One recent project involved developing an effective and efficient solution for a 500 square metre supermarket with 12.5m of freezer display cases and different temperature zones.

The system consists of one or more inverter driven outdoor units and a system controller. Indoor units can be added as needed: Daikin air conditioning units for comfort heating and cooling, third-party showcases or evaporators for medium temperature applications. Low temperature showcases/evaporators for frozen products can be connected via an optional Daikin booster unit. Conveni-pack’s modular and scalable design and very low noise levels makes it suitable for a large range of applications. Larger installations can be supported via multiple outdoor units in a variety of configurations (blocks, rows, or distributed throughout the building).

“Most convenience stores are located in residential areas,” notes Liam Kirwan. “They will generally have a unit for high temperature refrigeration, another unit for low temperature refrigeration and a couple of units for air conditioning. These all generate noise. Our system is a low noise operation, which is specifically designed for residential areas. It is designed specifically for convenience stores, hence the name, Conveni-pack.”

The Conveni-pack range has recently been expanded, offering even more flexibility for supermarkets and convenience stores. The existing AC 15 has been augmented with the new AC 17 that boasts higher heating and refrigeration capacity, introduces the use of R-410A refrigerant for more efficient refrigeration and even lower environmental impact, greater compatibility with indoor units, and longer piping lengths.

Conveni-pack’s comprehensive approach to cooling, heating and refrigeration results in drastically reduced energy consumption and CO2 emissions, low noise levels, as well as a very compact footprint. “It works on inverter-driven compressors and interver fans, which are extremely energy efficient, and also environmentally friendly,” boasts Liam Kirwan. “Our CO2 emissions are basically half what most other systems offer.”

SustainabilityEnvironmental care is a top priority for Daikin Europe NV. The continued perfection of its heat pump technology has resulted in residential, commercial and industrial solutions with extreme energy efficiency and reduced CO2 emissions. Daikin Europe NV is also committed to reducing environmental impact throughout the product life cycle, from the design phase, through manufacturing and installation, to recycling and recuperation at end-of-life.

A WELL-KNOWN organic food store in Germany recently installed a ZEAS system to replace six refrigerators, as they were wasting 50% of energy costs on refrigeration. “Six refrigeration units with six freezer display cases giving off heat and making a lot of noise in the sales area added up to a relatively weak energy balance,” noted the store owner. “Our main objective was to lower our energy costs as much as possible. We already use ‘green’ electrical power, so a system like ZEAS clearly made sense for us.”

The result? The sources of error are minimized and there is no need to adjust control components, etc. The system is extremely quiet compared to the six units previously installed, and has been described by the owner as “an outstanding, worry-free package. We are already thinking about upgrading our other outlets throughout Germany.”

Case Study:

Organic Food Store

Conveni-pack integrates refrigeration, heating and cooling systems.

ZEAS compact refrigeration condensing units offer high performance, low operating costs, low sound emissions and renowned reliability.


Indeed, concern for the environment has led to increased demand by the refrigeration industry and food retailers for energy efficiency and environmentally friendly solutions. The increased numbers of smaller c-stores, often in high density urban areas, has also made noise and size constraints an important factor. To meet this demand, Daikin developed the ZEAS range for deep freezing and medium temperature applications: compact refrigeration condensing units that offer high performance, low operating costs, low sound emissions and renowned reliability.

The principles behind the technology that revolutionised the comfort cooling industry – Daikin VRV – have been applied to refrigeration applications. A single system can supply optimum cooling to multiple refrigeration units, each receiving just the amount of cooling capacity it needs. Inverter control of the scroll compressor maintains high efficiency, even in partial load conditions, resulting in decreased CO2 emissions, reduced operating costs, and highly efficient and reliable performance in a wide range of applications. A new economiser function allows increased cooling capacity – and hence efficiency – without increasing system size.

ZEAS provides adaptable cooling capacity for multiple evaporators or variable refrigeration loads in ambient temperatures from -15°C to 43°C, with evaporating temperatures from -45°C to +10°C. A range of models in single, double or triple compressor systems (from 5 to 20 HP) are available for freezing and cooling applications. Low sound levels, including ‘night mode’ operation, a compact footprint and easy installation make ZEAS ideal for a range of applications, including convenience stores and supermarkets, petrol station forecourts, cold and freezer rooms, and food processors.

“A ZEAS system is approximately 30% more efficient than a standard refrigeration condensing unit,” notes Liam Kirwan. “We have seven models for high temperature refrigeration and another seven for low temperature refrigeration. At the moment, our high temperature units will handle up to 40kW, and our low temperature will handle up to 20kW, but this will double by the end of 2011.”

Refrigerant GasDaikin’s environmental pedigree is further strengthened by the refrigerant gas used in both the Conveni-pack and ZEAS products. The gas used, R410A is currently the best compromise available for the environment, energy efficiency and equipment cost.

“We are the only manufacturer using R410A refrigerant gas in our refrigeration products,” says Liam Kirwan. “99% of refrigeration systems use a gas called R404A, and independent tests have proved that R410A is far more efficient than R404A gas, which is again helping retailers to save money.”

Indeed, being environmentally friendly alone would not be enough for Daikin to increase its client base in the retail sector, which it has been doing steadily over the last number of years. When this sustainability commitment is allied to a proven energy-efficient solution, which will pay for itself

within a maximum of three years, the Daikin offering becomes very much a win-win for retailers.

For more information on the Daikin Europe NV organisation and product range, visit the Daikin Europe website at www.daikin.eu.

Refrigeration

DAIKIN recently carried out a comparison test at two similarly sized symbol group stores from a well-known international retailer. One store used a traditional heating/cooling system, including a compressor rack for chilling, another for freezing, an electronic expansion valve, with heating through a gas boiler, and no air conditioning system. The second installed a Conveni-pack system. After one year of operation, the store using the Conveni-pack system enjoyed a massive 75.09% saving on energy and 69.3% less CO2 emissions than the traditional system.

Case Study:

German Convenience Stores

Daikin Europe NV’s ‘Refrigeration Days’ Conference took place recently at their European headquarters in Ostend.

“Every single installation we work on is going to pay for itself within three years, maximum, and many pay for themselves within a much shorter time-frame.”

Daikin’s track record includes a long list of industry innovations.


Tobacco

2010 proved to be another difficult year for the Irish tobacco sector. However, the tobacco category continues to play an important role in driving footfall and profit for the retailer, representing between 20% and 30% of total sales value and accounting for sales of circa €1.9 billion in 2010, according to information from JTI Ireland Ltd.

Tobacco consumption has remained relatively stable amongst the Irish adult population over the last decade. In July 2001, 30.3% of the adult population (18+) were smokers. In 2010, smokers still accounted for more than a quarter of the adult population. On average, Irish adult smokers today consume 16.2 cigarettes on a daily basis.

Ireland has the highest tobacco prices in the European Union (EU) and a packet of 20 premium brand cigarettes costs an estimated €8.55. An equivalent brand costs approximately €4.25 in Spain, €2.50 in Romania and the Canary Islands and €1.20 in Russia. Cumulative large excise increases between 2000 and 2009 have not brought the Government the desired revenues, nor have they contributed to a meaningful decline in smoking incidence. In fact, high tobacco prices have driven Irish smokers to seek lower priced products supplied by the illicit market or purchased in other EU countries, according to JTI Ireland’s recent report into the illicit tobacco market in Ireland.

“The total size of the tobacco market in Ireland has been changing over the years,” says Chloe Campen, Corporate Affairs Manager, PJ

Carroll. “There are three core trends leading the changes, all of which to a greater or lesser extent are being driven by broad socio-economic factors. First, illicit trade and holidaymakers bringing back cigarettes from abroad are reducing sales from Irish retailers. Secondly, we have seen high levels of emigration, which is reducing the number of adult smokers, and finally we are seeing growth in the RYO sector.”

“The most notable and interesting development in the category has to be the growth of the RYO (Roll Your Own) sector,” agrees Cheryl Cullen, Marketing Manager, JTI. “Once considered a niche offering, the RYO sector is enjoying a period of sustained growth and is now a significant profit generator for Irish tobacco retailers.”

One explanation for the recent growth of the sector can certainly be attributed to the changing economic landscape in Ireland. RYO is the rational choice for smokers looking

for real value for money, without compromising on taste or quality. Moreover, retailers are benefiting as RYO sales in Ireland have soared. The volume of RYO sales in Ireland has increased by a significant 62% over the last two years (Source: ACNielsen, Extended Scantrack, Sales Kilos, MAT 20/03/11 vs MAT 20/03/09).

John PlayerSince launching in mid-April, consumers have been highly impressed by the refreshed, modernised look of

The tobacco category represents 20-30% of total sales value in the retail sector, and accounted for sales of €1.9 billion in 2010.

Lighting Up the Market

The striking new look from John Player enhances the premium positioning of the brand, while new John Player Gold is a credible choice for consumers who choose to move down in strength.

Irish consumers are highly impressed by the refreshed, modernised look of the John Player family, including John Player Blue, John Player Bright Blue, John Player Gold and John Player Blue 100s.

IF IN DOUBT - LEAVE THEM OUT SMOKING IS FOR ADULTS AND JOHN PLAYER BELIEVES THAT CHILDREN SHOULD NOTSMOKE. PLEASE BE EVER VIGILANT. IF THERE IS ANY DOUBT ABOUT A PERSON'S AGE -ALWAYS REFUSE THE SALE. INFORMATION FOR TRADE CUSTOMERS ONLY.

Tobacco


the John Player family, including John Player Blue, John Player Bright Blue and John Player Blue 100s.

Among the many packaging updates, a tactile element helps the brand exude a more contemporary look and feel. The striking new look from John Player enhances the premium positioning of John Player, while remaining true to the brand heritage.

John Player is delighted to announce the launch of John Player Gold. The trend of consumers moving towards the smoother sector continues growing, with currently 42% of the cigarette market in this sector (All data sourced from ACNielsen, Extended Scantrack, March 20/11). John Player Gold is a credible choice for consumers who choose to move down in strength.

The pack is unmistakably a ‘smoother’ brand, with its white tones, clean lines and sophisticated look. It also provides a tactile element, with the texture adding another element so important to a brand of today.

Building upon the strong heritage and success of the John Player brand, John Player Gold is sure to impress consumers who are looking for another option in the smooth sector.

John Player Gold is available in both King Size and 100mm length. RSP for both brands is €8.50.

The Roll Your Own (RYO) market continues growing, as the recession pushes consumers to seek out greater value. In a sector up 31.5% versus last year, Golden Virginia and Drum are up 20.8% and 26.3% respectively.

A major factor fuelling the success of both Golden Virginia and Drum over the last 18 months has been the introduction of the Combi Pack. With 12.5g of tobacco and Rizla Green papers included, this pack offers the best value available on the market, according to the company.

Additionally, Golden Virginia Yellow has captured 2.2% share of market in the Roll Your Own sector since launching last November, adding further credibility to the already hugely successful Golden Virginia brand.

Rizla has gained 3.5% market share versus a year ago, and controls 85.3% of the rolling paper market.

In today’s tough economic climate, consumers are constantly looking for a bargain, without compromising on quality. Within this growing sector, JPS now holds nearly 7.5% of the entire value segment in Ireland, and offers adult smokers a varied choice for less money.

JTIThe iconic Benson & Hedges is the second largest cigarette brand in the market, after Silk Cut, with a national market share of 18.3% (Source: ACNielsen, 2010).

B&H Gold King size continues to hold its strong position as Ireland’s number one selling cigarette (B&H Gold KS 17.5% SOM, Source: ACNielsen, 2010), and research shows that Benson & Hedges Gold is the first brand of choice for almost one in four smokers in Ireland (Source: Smoking Monitor Survey 2010, Millward-Brown Landsdowne).

Benson & Hedges has a rich heritage and history in Ireland and is committed to deliver a consistent and high quality smoking experience to its consumers. As part of the evolution of Benson & Hedges, the pack was redesigned during 2010 and the iconic gold pack was given contemporary bevel edges. This illustrates the brand’s commitment to always offer a premium product with a contemporary look and feel.

Following on from its recent success, B&H Silver Slide is now available to order nationwide. Retailing at the competitive price of €8.00 with a cash margin of 58cent per pack (based on an RRP of €8.00), this

AS we continue making our way into 2011, it’s important to look back at some of the key successes from 2010 which are a direct result of the hard work carried out by John Player, ITMAC and retailers across Ireland to tackle cigarette smuggling:

• The February 2010 Finance Bill raised the maximum penalties for individuals caught selling illegal cigarette products by 10 fold to €126,000.

• A second scanner was purchased despite Government cutbacks.

• Approximately 178.3m cigarettes in total were seized by Customs to the end of December 2010.

• Smuggling is now a priority issue for Customs and Gardaí nationally.

• There has been zero excise increase in the last two budgets.

Efforts by retailers and retail advocacy groups across the country went a long way in ensuring that politicians, Gardaí and Customs made the tackling of smuggling a key priority.

Retailers against Smuggling (RAS) was particularly active in 2010 in putting this issue on the public agenda. Tobacco is a crucial footfall driver in retail shops, as adult smokers spent approximately €2 billion on their chosen brands in 2010. A key result of last year’s seizures means there were fewer cigarettes on the streets and more in the legitimate market. Yet despite the recent accomplishments, 27% of cigarettes consumed in Ireland last year were not bought in Irish shops. Additionally, €100s of millions was lost to the Exchequer in 2010 alone. And though millions of cigarettes were seized last year, millions more found their way into Ireland to compete with retailers’ bottom line.

We need to bring these smokers back to the legitimate market, and it is for this reason that John Player asks that in 2011, retailers remain vigilant and help bring these criminals to justice. Tell your John Player Representative, contact your local garda or call the Smuggled Cigarette Freephone on 1800 295 295 if you know of any counterfeit or contraband product being sold in your area.

(Source: John Player)

Combating the Smugglers

B&H Gold King size continues to hold its strong position as Ireland’s number one selling cigarette

Tobacco

unique slide pack offering is a fusion of innovation and the evident quality essence of Benson & Hedges. To ensure you have adequate stock, talk to your local JTI Trade Marketer, visit your local Cash & Carry or place an order on 01-4040200.

Silk Cut is Ireland’s number one cigarette brand, with more than a quarter of all cigarettes sold in the Irish market being Silk Cut variants (Source: Silk Cut 26.2% SOM, ACNielsen, 2010). Silk Cut enjoys iconic status in the minds of existing adult Irish smokers and recognising the need to continually evolve to meet their changing needs is central to the brand’s continued success.

Innovation is at the forefront of Silk Cut’s brand strategy, with unique pack formats, such as SuperSlims, illustrating JTI’s dedication to the further development of the Silk Cut brand. Silk Cut SuperSlims has upgraded its style credentials with a completely new pack and cigarette tipping design. The design redefines Silk Cut, utilising an intricate pattern against striking, dual colour-blocked backgrounds. As market leader, Silk Cut is committed to introducing unique, premium smoking experiences to existing Irish adult smokers.

Also from JTI, Camel is the number two American blend in the Irish market (Source: ACNielsen, MAT, March 20, 2011). Internationally recognised, Camel’s role in the Irish market is niche and cutting edge, appealing especially to the alternative urban adult smoker, tired of ageing mainstream brands. Camel is globally renowned for its limited edition packs. In the Irish market, JTI have launched a number of LEP packs the last few years. The latest limited edition pack, Camel Urban Canvas, launched on April 11, takes inspiration from the changing urban landscape, resonating with the originality and creativity of Camel.

Long established north of the border and in the UK, Mayfair is now a formidable force and a brand to be reckoned with in the world of Irish tobacco retailing. Boosted by a dynamic pack redesign in late 2009, 2010 has seen the Mayfair brand continue to

Silk Cut is Ireland’s number one cigarette brand, with more than a quarter of all cigarettes sold in the Irish market being Silk Cut variants.

Silk Cut SuperSlims has upgraded its style credentials with a completely new pack and cigarette tipping design.

Following on from its recent success, B&H Silver Slide is now available to order nationwide.

76% of imported lighter models still do not comply with European safety standards (Source: PROSAFE), with 99% of non-conforming lighter models imported from outside the EU. BIC, the number one branded pocket lighter manufacturer in the world, manufactures and sells five million lighters worldwide every day, and all BIC lighters are compliant with ISO9994.

BIC“TOBACCO is essentially a destination purchase, which is in stark contrast to many other FMCG products, which tend to be more impulse buys. The retailer can avail of this trend by ensuring that they have the full range of cigarette and tobacco brands in stock, so to avoid consumer migration to other stores.

“ACNeilsen data for 2010 shows that 70% of cigarette customers will either buy the same brand at another store or wait until it is available if they face an out- of-stock situation.”

The illegal sale of tobacco product is still a major concern in Ireland. What more would you like to see done to combat the problem?

“There is no doubt that considerable progress was made in the fight against the illicit tobacco trade in 2010. A consistent focus by stakeholders has led to a slight decline in the percentage level of this illegal trade. Despite this, approximately 22-24% of all tobacco consumed in Ireland still evaded Irish excise duty in 2010. It is our belief that a strategic and integrated approach, led by Government, is required to effectively combat the illicit tobacco trade. Such a platform could be tasked with the development of an overall strategy that ultimately stamps out smuggling for good.”

Ask The Expert: Cheryl Cullen, JTIMANAGING TOBACCO SALES:


Tobacco

grow from strength to strength. The diverse choice of SKU’s on offer makes Mayfair the obvious choice for adult Irish smokers looking for a quality smoking experience at an affordable price.

In the RYO sector, JTI Ireland’s Amber Leaf has driven market growth. While the volume of RYO sales in Ireland has increased by a significant 62% over the last two years, Amber Leaf has grown by 175% over the same two year period (Source: ACNielsen, Extended Scantrack, Sales Kilos, MAT 20/03/11 vs MAT 20/03/09).

“As the first RYO brand in the Irish market to be launched in a crush proof box, Amber Leaf has gained the reputation as the most innovative RYO brand in the market,” notes Cheryl Cullen, JTI. “More recently, Amber Leaf replaced the traditional foil block of its 12.5g crush proof box with a new innovative mini pouch, the smallest compacted pouch of tobacco on the market.”

PJ Carroll PJ Carroll tobacco brands include: Pall Mall, Vogue, Carrolls Number

One, Major, Rothmans, Sweet Afton, Consulate, Lucky Strike, Dunhill, Samson and Cutters Choice.

According to Chloe Campen, Corporate Affairs Manager, PJ Carroll, “Many of the trends we are seeing are driven by adult smokers looking for greater value for money during a time where their disposable income is most likely stable or reducing. The Value

for Money segment of the market is growing, as is RYO. Our Pall Mall range of cigarettes is doing very well and we are seeing growth across all variants.

“While cigarettes dominate the tobacco market in Ireland, the Roll Your Own (RYO) category has witnessed unprecedented growth over the last two years and we at PJ Carroll believe that this growth is set

“The legal cigarette market in Ireland has collapsed in recent years, while the proportion of the adult population that smokes has remained relatively stable. We can see that smokers are simply switching from legitimate retailers to the illegal market. The illicit tobacco trade is endemic. Cut price illegal cigarettes are being sold door to door, in housing estates, in street markets and in workplaces. As the Prime Time exposé and TV3 documentary on the black market economy showed, the illicit tobacco trade in Ireland is highly criminalised and widespread. The profits from cigarette smuggling are being used to fund all sorts of other criminal activities.

“Despite some positive steps, including the previous Finance Minister

recognising the problem by holding excise in two successive budgets, an increase in the penalties available to the courts, and a number of high profile seizures, PJ Carroll has yet to see a continued reduction in illicit trade. Fine Gael and Labour both included commitments to tackle illicit trade in their manifestos and those commitments were repeated in the Programme for Government. This is a very positive sign and we look forward to seeing action in this area.

“With the rate of smuggling damaging our business, and that of thousands of retailers across the country, as well as nourishing sinister criminality, we hope we have helped support the legitimate market by reducing the RRP of Pall Mall to €7.25.”

Ask The Expert: Chloe Campen, Corporate Affairs Manager, PJ Carroll.THE SMUGGLING ISSUE:

The Pall Mall range of cigarettes from PJ Carroll is doing very well, with growth across all variants.

Cutters Choice from PJ Carroll is performing extremely well in Ireland.

IN 2010, there were two European developments that are of concern to Ireland’s tobacco taxation and pricing policies. The first was the entry into force of the European Union (EU) Excise Directive (2010/12/EU) on February 27, 2010. The Excise Directive enforces various changes, including providing EU Member States with the possibility of introducing significantly higher rates of fixed (specific) excise duty on cigarettes. Ireland has, for many years, taken the decision to keep the fixed rate of excise at 55% which was the maximum allowed under the previous tobacco taxation legislation. The new EU Directive allows the Government to increase this fixed rate of tax to a maximum of 76.5% of total tax (excise + VAT) on the market weighted average price.

The second, more significant development, was the European Court of Justice (ECJ) decision in case C-221/08 on March 4, 2010, which prohibits the continued use of the minimum retail selling price (MRSP), otherwise known as the price basket mechanism, which has been in effect in Ireland since 1986. The MRSP allowed the tobacco regulator in Ireland to set a minimum price for tobacco products. This created a compressed market where the lowest and highest prices of tobacco brands did not vary greatly. In early 2010 for example, the minimum price was €7.75 and the premium price for a packet of 20 cigarettes was €8.55. While the tobacco excise structure will continue to evolve, it is imperative that any cigarette excise policy implemented by Ireland’s Government is sustainable, with the aim of optimising revenues whilst maintaining a stable and orderly market, according to JTI Ireland.

EU Developments


Tobacco

to continue. Both PJ Carroll’s RYO brands, Cutters Choice and Samson, contribute to one in every 10 retail pack sales of RYO within the Republic of Ireland, making them a must stock for all tobacco retailers (Source: Retail

Audit Oct 2010).”Even though the VFM and RYO

brands have been driving growth, the premium category has seen some decline. Therefore, it is important for retailers to stock a range a full range

of premium and VFM brands. “We are also seeing continuous growth of our Vogue Superslims range, which is a premium niche offering,” says Campen.

Smokers are very loyal to their brands and stocking a full range of products ensures a tobacco sale every time. A good example at PJ Carroll is Pall Mall. “Pall Mall Red has always been our leading product in the Pall Mall brand family. However, we are seeing the other members of the family, Blue, Pink, Red 100’s, and Blue 100’s, growing in popularity. Stocking all the members of the Pall Mall family ensures smokers are able to purchase their preferred variant of the brand,” says Chloe. When asked, many smokers say they will leave a store if their preferred product is not available.

THE Australian Government recently published a bill to introduce plain packing for tobacco products which they hope to have implemented in July 2012, essentially banning logos and branding on packs, a move that has been broadly criticised by tobacco manufacturers.

“Given the significant scale of the illicit tobacco trade in Ireland and globally, it is our belief that plain packaging would only facilitate the manufacture of counterfeit cigarettes and packaging,” notes JTI’s Cheryl Cullen. “The current use of colour and stylized elements make the production of counterfeit packaging more difficult. Moreover, a consumer’s ability to identify counterfeit product may also be undermined. JTI will continue to engage with Governments locally and internationally to ensure practical and sensible legislation is devised that doesn’t exacerbate the illicit tobacco trade.”

So far, plain packs have not been introduced anywhere in the world. “We are fundamentally opposed to the idea of plain packaging,” stresses PJ Carroll’s Chloe Campen. “The industry in Australia has made it clear that they will take every action necessary to protect their valuable brands and right to compete as a legitimate commercial business, selling a legal product. There is no evidence to suggest that plain packaging would have any impact

on smoking uptake by young people. In fact, all the research over many decades points at peer pressure being the main reason children start smoking. The unintended consequences of introducing plain packaging could have the adverse effect of making cigarettes more accessible to children.”

Counterfeiters are currently having to go to some trouble to try and match colours and designs on packs to trick smokers into thinking they are getting the real thing, and they often get it wrong, making detection of fakes easier, argues Campen.

“If any Government insists cigarettes are sold in plain packs, it would be like Christmas for counterfeiters and the criminal gangs who smuggle and sell cigarettes,” she warns. “Criminals selling counterfeits have no problem selling their cigarettes to children. Such a policy which is designed to make tobacco less accessible to children could end up having the opposite effect.

“Plain packaging would prevent companies from using valuable corporate assets and risk placing governments in breach of various legal obligations relating to intellectual property rights, international trade and European law. It would also set a dangerous regulatory precedent for brands owned and used by other industries.”

The Australian Question?

Samson, one of PJ Carroll’s RYO brands, is enjoying strong sales across the country.

The popular Lucky Strike brand from PJ Carroll.

PJ Carroll advise that a lot comes down to getting the basics right when it comes to tobacco sales.

“The simplest way of avoiding lost sales and at the same time preventing overstocking and is a systematic review of inventory purchases”, advises Chloe Campen, Corporate Affairs Manager, PJ Carroll. “The

availability of accurate inventory and sales records to identify trends, combined with your own judgment, can guide you to sound purchasing decisions that pay off!”

Stock sitting in the store room is money tied up, so it is vital that staff are trained to ensure they replenish stocks at the counter so they are

always available to consumers. Otherwise, if it is not available at the counter, staff can assume the product is out of stock and this leads to lost sales. Don’t forget to rotate stock on a ‘First In First Out’ basis - this is often referred to as FIFO. FIFO helps to ensure that consumers are always purchasing products as fresh as possible, in terms of quality or flavour.

Managing Tobacco Sales



SUPERVALU presented Excellence Ireland Hygiene & Food Safety Certificates to a record number of SuperValu retailers from all over the country, who completed the SuperValu National Hygiene & Food Safety programme accredited by EIQA (Excellence Ireland Quality Association), at its annual Quality Awards ceremony held in the Malton Hotel, Killarney, Co. Kerry.

Year-on-year, these entrepreneurial food retailers continue to push out the boundaries of excellence, with no fewer than 189 stores receiving a SuperValu Quality Award for 2011, which is independently audited by the EIQA. Additionally, a further record number of 105 SuperValu stores received the Supreme Hygiene Award, which rewards retailers that have performed to a consistently high level over a three-year period.

The awards demonstrate SuperValu’s ongoing commitment to rigorous quality measures and the highest levels of hygiene.

Pushing the Boundaries of Excellence“SuperValu stores continue to push out the boundaries of excellence in everything they do,” said Martin Kelleher, SuperValu Managing Director. “The brand is committed to meeting and exceeding the highest standards of food safety. Quality is at the heart of everything we do and the number of SuperValu stores that have been awarded an EIQA Award is a testament to this. The hygiene ethos is embedded in daily standards and is maintained throughout our food chain, from production right through to the supermarket shelf.”

Kelleher added that a quality performance is about “determination to constantly serve our customers to the very best of our ability. It’s about going that extra mile, not because we have to, but because we want to. It’s about the range of food we offer, our customer service standards, our store locations, and not only meeting but exceeding expectations.”

Consistency of DeliveryThe EIQA National Hygiene programme incorporates all recognised codes of good hygiene practice, ensuring robust standards and excellence in hygiene and food safety, according to Irene Collins, Managing Director of EIQA:

“Today’s consumer is more demanding than ever and superb hygiene and food safety standards are expected. However, it is the consistency in this delivery that ensures an organisation achieves stand-out and SuperValu certainly is recognised amongst the wider community for its outstanding results in this area. Therefore, it is very important that such achievements are acknowledged and applauded and so become an incentive for others to strive to reach the same high standards. SuperValu’s well deserved reputation for high standards with their approach to hygiene and quality are not just an add-on to what they do, but very much a part of their everyday routine.”

Pictured are Ciaran Levis (left), Sales Director, SuperValu and Martin Roper, Technical Director, EIQA (right), presenting Martina and Tony Gibbons of Heneghan’s SuperValu, Glenmaddy, Co. Galway, with a SuperValu Supreme Quality Award.

Pictured are Martin Kelleher, SuperValu Managing Director (left) and Irene Collins, Managing Director of EIQA, presenting store owner Eugene Scally of Scally’s SuperValu, Clonakilty, with a SuperValu Supreme Quality Award.

Rory Gallagher of Rooney’s SuperValu, Killybegs, Co. Donegal, is pictured (centre) receiving a SuperValu Quality Award from Ciaran Levis, SuperValu Sales Director, (left) and Martin Roper (right), Technical Director, EIQA.

Robert and Audrey Murphy, and Rastiaslav Novotay of Nan’s SuperValu, Ballymun, Dublin 11, are pictured receiving their SuperValu Quality Award 2011 from Martin Kelleher, SuperValu Managing Director (left) and Irene Collins, Managing Director of EIQA (right).

SuperValu Quality Awards

SuperValuRetailers Score Top Marks for Quality

Market News


Rudd’s Relaunch Breakfast Range RUDD’S, the “best kept secret” in premium Irish breakfast meats, are re-launching their traditional Irish brand with a modern new look, as well as adding some tempting new products to their portfolio. Rudd’s have recently been awarded the Bord Bia Quality Assurance Mark. They only use 100% Irish pork, sourced from Irish farmers. Their sausages boast a 75% pork content, giving them a really meaty taste. Their rashers are dry cured by hand in the old traditional style, resulting in no shrinkage during cooking, but the “pièce de la resistance” for pudding lovers, is their unique roulade of black and white pudding combined, which is sure to tickle taste-buds.

COUNTRY LIVING FROM COUNTRY CREST COUNTRY Crest is a true believer in the ‘From the farm to the fork’ ethos. To celebrate the launch of its latest development online, www.facebook.com/CountryCrest, the company is giving its Facebook friends the chance to win a luxurious two-night stay in the fabulous Tankardstown House (pictured) for two people, including lunch in the Tankardstown House Bistro, a half-day guided tour of Newgrange, dinner on both evenings and a luxurious one-hour treatment for each person. To enter, consumers simply “like” the Country Crest Facebook page.

MCVITIE’S TEMPTATIONSONE of Ireland’s favourite biscuit brands, McVitie’s, is launching Temptations, an enticing new range of luxury bite-size chocolate biscuits, combining a variety of delightful tastes and scrumptious textures with smooth Belgian chocolate. Available in cartons of six individually-wrapped duo portions, there are three tempting flavours to choose from: Belgian Milk Chocolate and heavenly Hazelnut, Praline or Truffle. With a recommended retail price of €2.49, and only 50 calories per biscuit, giving into temptation has never been so guilt-free!

SMARTPACKS FROM TOTAL PRODUCE TOTAL Produce has launched an innovative Smartpack Range of fresh produce packaging, incorporating unique ‘Quick Response’ (QR) barcodes, which allow consumers to access immediate relevant information on the fruit or vegetable via the on-pack code. The Total Produce Smartpacks range, including all fruit and vegetables in the Total Produce portfolio, now incorporate unique QR codes. QR codes can be read from any Smartphone and once the code is picked up, consumers will automatically be directed to the appropriate area of Total Produce’s new consumer website, topfruit.com. For example, a QR code accompanying a Pitahaya (Dragon Fruit) will direct the consumer instantly to a 3 minute video explaining how to prepare and serve the fruit. Top Irish nutritionist, Paula Mee is pictured with the Total Produce Smartpacks range.

TWO NEW MAGNUM ICE

CREAMS MAGNUM has unveiled two new delicious ice creams for those seeking a new select chocolate pleasure. New Magnum Ecuador and Magnum Ghana are made with specially selected cocoa beans sourced from Rainforest Alliance Certified farms in Ecuador and Ghana. For those who seek the ultimate in chocolate pleasure, new Magnum Ecuador is utterly irresistible: thick dark chocolate – made with 62% cocoa – covers smooth vanilla ice cream, containing swirls of intense dark chocolate. For a sumptuous flavour combination, Magnum Ghana has a generous layer of milk chocolate – made with 36% cocoa – covering exquisite hazelnut ice cream and delicate milk chocolate sauce. See www.mymagnum.com for more..

AUTHENTIC ITALIAN BALSAMIC VINEGAR AT ALDICONSUMERS can enjoy a splash of ‘la dolce vita’ with Aldi’s Cucina Specially Selected Aceto Balsamico di Modena IGP (€2.99 per 250ml). Produced in the famous balsamic vinegar region of Modena in Italy, chefs of all abilities will be delighted to get their hands on this premium product for an incredible price! Providing exquisite taste and incomparable flavour, Aldi’s authentic

balsamic vinegar has been awarded a premier ‘four leaves’ classification by the Italian Certification Body, ‘CSQA

Certificazioni srl’. Authentically packed in a glass vessel complete with cork stopper, Aldi’s essential kitchen item will stand proud on any cook’s shelf

Forecourt Focus


WHEN Michael and Josephine Fitzpatrick significantly upgraded their forecourt store in Kilmihil, Co. Clare, last year, they went from a fully independent to a symbol group store, and Costcutter ticked all the boxes.

The Fitzpatricks opened their forecourt in Kilmihil back in 1994, and successfully traded as a fully independent forecourt shop until 2010, when the couple undertook a major investment that included developing the forecourt site and greatly increasing the size of their shop. They decided to work in partnership with a symbol group and now Kilmihil boasts a top spec. Costcutter supermarket as well as a new

hardware and garage, with extremely competitive petrol prices at the pumps.

While the entire project took six months to complete, given the scale of the work involved, the conversion of the shop itself was completed surprisingly quickly. On Easter Monday evening 2010, the shop as it was known closed its doors – but the Fitzpatricks were able to continue trading from what is now a separate sit-down area – and by the following Saturday morning, their brand new Costcutter was open for business.

“We have not been immune to the decline in the economy and we wanted to create a forecourt that offered people as many reasons to stop here as possible,” Josephine explains. “We had a good relationship with the Barry Group prior to this investment, as we had been working with the Group as a wholesale supplier.”

Michael pays tribute to the advice and, indeed, enthusiasm of the Costcutter team: “We wanted to offer an increased range of grocery, more off sales, a greatly expanded deli that would better suit the needs of our customers and Costcutter offered us the chance to do all of that.”

Return on InvestmentThe support the couple received from Costcutter not only provided them with a wealth of advice, but also gave them

Michael and Josephine Fitzpatrick are pictured outside their Kilmihil forecourt store with Gerry Burke, Account Manager, Costcutter.

Michael and Josephine Fitzpatrick switched from a fully independent to a Costcutter store when they upgraded their forecourt in Kilmilhil, Co.Clare, and they haven’t looked back since.

Costcutter Makes its Mark in Clare

Forecourt Focus


tremendous confidence that they would see a return on their investment. Barry Group appointed their project manager to effectively manage the development of the shop on behalf of the Fitzpatricks and the planning, attention to detail and hard work he put into the project was evident in the fact that the fit-out took just five working days.

“The fit-out of the shop was done with almost military precision,” smiles Michael. “There was a constant stream of workers, all of whom had to be co-ordinated expertly in order for the precise schedule of works to be met. The support that we got was brilliant, especially given the fact that we were engaged in the building work for the new garage and hardware. There’s no way that we could have managed to keep on top of the project without the support that we received from Costcutter. Gerry [Burke – Account Manager] and Cyril [Vickers – Regional Manager] also gave us fantastic advice on what we should fill the brand new shelves and units with. Costcutter and the Barry Group know the grocery retail sector so well, that they could advise us on the best possible selection of products to present to our customers when the shop re-opened.”

Despite the fact that Michael and Josephine had 16 years of grocery retail experience, their partnership with Costcutter has allowed them to greatly improve their product range, as Josephine explains: “Working with Costcutter, we have been able to achieve a standard of excellence in the shop and a precisely tailored selection of offerings and products that we could not have done on our own. The Barry Group began as a family-owned business. The organisation is now much larger and extremely professional, but it is still family-owned and that ethic extends into the way Costcutter works. We have never once felt like a number on a list in this partnership. The hard work and dedication of the Costcutter team is relentless, they are every bit as committed to our success as we are. Both Michael and myself have a strong work ethic and high standards and these are matched at every turn by Costcutter.”

High PerformanceTheir high standards and hard work was clearly demonstrated in the shop’s first review in the Costcutter Store of the Year programme. The initial audit was performed while tradesmen were still working in the shop. Not ideal timing by anyone’s standards. By the time of the second audit, the shop was trading normally and it achieved such a high standard that overall, Fitzpatricks’ store received a Certificate of Merit, meaning it achieved an average score of over 80%.

The new shop has been wholeheartedly welcomed by the local community; the larger shop is able to offer a much

wider range of product and also provides a much stronger value-for-money offering to customers than the old shop could. Customers love the new look, the expanded choice and the strongly promoted value offers at point of sale. In a town affected by emigration from the community, sales are up year-on-year, with all areas of the shop trading at or above expected levels.

Promoting Value OffersBoth the Fitzpatricks and the Costcutter group place a strong emphasis on letting locals know what the new shop has to offer. Costcutter promotes great value offers on a national level, while the Fitzpatricks complement that with their own local promotional activity. Online marketing tools from the group allow them to print additional POS material and flyers for local distribution at minimum cost, while their daughter Niamh keeps the shop’s Facebook page regularly updated, promoting in-store offers and seasonal treats such as Easter eggs. Over 500 Facebook members like the Fitzpatrick’s page, no small feat in a rural village and a testament to how digital media can be used effectively to promote a shop to a local community.

The dedication and determination of the Fitzpatrick family and the Costcutter Group has given Kilmihil a shop to make any village proud and one that sits comfortably at the heart of the community, perfectly meeting its shopping needs.

Owner: Josephine & Michael Fitzpatrick

Location: Kilmihil, Co. Clare

Size: 2,200 square feet

Number of Staff: 20, full time & part time

Opening Hours: 07:30-21:30, Monday-Saturday; 08:30-21:00, Sunday.

FACT FILE

Shelf Life

BLEATING the competition on both price and quality, Aldi is offering customers an entirely fresh range of new season Irish spring lamb at its 81 stores nationwide. Featuring rump steaks, loin chops and lamb legs, the Bord Bia Quality Assured Nature’s Isle new season Irish spring lamb range is supplied by Irish Country Meats of Co. Wexford and AIBP Cahir of Co. Tipperary, offering customers a superior quality product range and the assurance of full traceability.

FIVE fruit growers from Wexford, part of the Wexford Fruit Producers group, are introducing the first Wexford branded strawberries to the Irish market called Sunny Wexford Strawberries. While Wexford strawberries are considered to be grown locally, it is not always the case that they come from the county. The Sunny Wexford Strawberry brand is not just about being local, it is about transparency. Where the strawberry comes from, how it is grown and by which grower is all part of the new Sunny Wexford Strawberry brand. Consumers can become acquainted with the grower and their family, their farm and their fields through their website, Facebook and Twitter activities (see sunnystrawberries.ie). Pictured at the launch is Minister for Agriculture, Fisheries and Food, Simon Coveney TD (third from left) with Wexford strawberry growers, Jimmy Kearns, Paddy Murphy and John Green.

RUNNERS of the 6th Achill Half Marathon will have an added spring in their step with the announcement that Tipperary Water is to be the Official Mineral Water sponsor for the second year running. Pictured at the launch of the event are Michael Ring TD, Minister of State at the Department of Transport, Tourism and Sport (left), with Liam Hennessy, President of Athletics Ireland (right); Laura Byrne, Tipperary Water, and Brendan O’Neill, a member of the Ireland Men’s U-23 gold medal winning AAI European Cross Country Championships team. The race takes place on July 2 at the spectacular west Mayo island.

AS part of Ireland’s biggest annual heartfelt appeal, Dublin senior footballer Alan Brogan was first in line to buy a happy heart to launch the Irish Heart Foundation’s Happy Heart Weekend appeal recently in Lidl’s Marlay Grange store. The GAA star was joined by Store Manager Pawel Kopec and Happy Heart Weekend Coordinator Aideen Lynch as they urged the people of Dublin to make sure their hearts are in the right place and buy a Happy Heart for €2.

The 21st annual fundraising appeal run by the national heart and stroke charity is this year sponsored by Lidl Ireland.

NEW from Kellogg’s comes Krave Milk Chocolate; crunchy oat, rice and wheat pillows filled with an outrageously tasty milk chocolate flavoured filling. Kellogg’s Krave already comes in a delicious Chocolate Hazelnut flavour and has become a firm favourite

with young adults since its launch last year. The cereal continues to push boundaries and set the standard with a special 3D cinema ad this month.


WILLIAM Grant & Sons have announced the appointment of John Quinn (pictured) as the first ever Global Brand Ambassador for Tullamore Dew. He is responsible for developing product knowledge and expertise among important bar staff, brand managers and consumers around the world, as well as working with local Tullamore Dew brand ambassadors in key markets like North America, UK, France, Czech Republic, Bulgaria, Scandinavia and Ireland. The company also appointed

Shane Hoyne as Global Brand Director of Tullamore Dew Irish Whiskey, based at the company’s Dublin Global Marketing Office.

TESCO have been unveiled as the sponsor of the Dublin Ladies Football Championships in a three-year deal. “We are delighted to become the new sponsors of the Dublin Ladies Club Championships,” said John Prendergast, Head of Trade Planning and Local Marketing for Tesco Ireland. Tesco Ireland will bring their “Every Little Helps” motto to life through the sponsorship of the Dublin Club Championships with a number of initiatives planned to add value to all clubs competing in Dublin. Details of these initiatives will be announced shortly.

FRENCH Onion Soup has been revealed as Ireland’s favourite soup flavour, marking the success of Gorta’s National Soup Week. French Onion Soup took 18% of the overall vote, beating Seafood Chowder, which came in second with 14%. In joint third place were two reliable choices – Potato & Leek and Vegetable – with 12% of the vote. Filling up the latter half of the winners table were Chicken, Tomato, Lentil and Spilt Pea Soup.

IN last month’s issue, we inadvertently misplaced two photographs on our Industry News page, running the photograph of Jim Deignan, MD of Payzone Ireland, and David McCarty from postfone, with the wrong story. RETAIL NEWS would like to apologise for any offence caused by the mistake, which was down to simple human error.

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retail news may 2011

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