If they ask for cigarettesyou have to ask for ID

because if you sellcigarettes to under 18s you

could face a fine of up to€3,000 and be banned from

selling tobacco products

www.otc.ieLoCall 1890 333100

In this months issue

October 2010

The changing economic environment in Ireland has presentedsignificant challenges to landlords and retailers.

2 NEWS

4 NEWS- AN AUTOMATED INDUSTRY

8 NEWS- A STRONG CONTENDER

10 NORTHERN IRELAND COMPANY LOOKS SOUTH

14 NEWS - NCA TAKES ACTION

16 NEWS - DRIVING THE MESSAGE HOME

18 DRINKS NEWS

M.D/Editor: Frank MaddenDeputy Editor: Ruth TimminsBsn. Dev. Managers: Niall P. Madden

Sarah GriffinContributors: Emma Maguire

Daire WalshCirculation: Margaret CorryDesign: 90% Proof

Todays Grocery Magazine Tel 2809466 (6 lines)The Mews email: info@todaysgrocery.comEden Road Upper editorial@todaysgrocery.comDun LaoghaireCo. Dublin www.todaysgrocery.com

Small PrintTodays Grocery Magazine is circulated to all proprietors, directors and managers of allrelevant manufacturers and distributors, to every cash and carry, every multiplesupermarket, group head office and wholesaler, all group affiliated shops and Londis outletsin addition to over 6,300 unaffiliated independent retailers and the country’s leading off-licence outlets. All articles are copyright of Todays Grocery Magazine and cannot bereprinted without the written permission of the editor. All letters to the editor of thismagazine will be treated as having been submitted for publication. The magazine reservesthe right to edit and abridge them.Disclaimer While every effort has been taken to ensure that all information is accurate atthe time of going to press, neither TGM Ltd or Todays Grocery Magazine acceptresponsibility for any inaccuracies or omissions. Please note that the opinions expressed inthe articles are strictly those of the authors.

22 NEWS - A NEW MARKETING STRATEGY

26 THE COVER STORY - 2025 A DRINKS ODYSSEY

12 NEWS - THE PSYCHOLOGY OF SALES

NCA pubished its latest consumer protection list which details57 enforcement actions taken against businesses.

42 DRINKS NEWS - THE IRISH FOR STOUT

46 BAN WILL HIT SMALL INDEPENDENTS WORST

52 NEWS EXPORTS HIT €3 BILLION MARK

Interesting times lie ahead for the drink industry, and notjust in the next few years, but even further down the line,and into the next decade where a number of factors maycome into play that will have a major effect overall on the

make-up of the industry.

2 TGm

N E W S

Sales of codeine drop 45%Sales of codeine-

containing products such asNurofen Plus andSolpadeine fell by almosthalf during August, afternew guidelines forpharmacists governing theiruse came into effect at thebeginning of the month.

Latest industry figuressupplied to GlaxoSmith-Kline Ireland, manufacturerof a range of over-the-counter medicines includingSolpadeine, show theoverall number of packetsof such products soldthrough pharmacies fell by45% last month whencompared to August 2009.

Under the newPharmaceutical Society ofIreland guidelines on thesale and display of products- which came into effect on

1st August - pharmacistshave to ensure customersknow how to use suchmedicines properly.

As a result, codeinemedicines such aspainkillers and coughbottles must only besupplied under the personalsupervision of apharmacists, who mustadvise customers that theyonly be used whenconsidered necessary andfor the shortest timepossible.

This has promptedresentment among somepeople at being subjectedto what they claim is a typeof “interrogation” whenthey look to purchase theseover-the-counter drugs.

However, supporters ofthe guidelines point to the

fact that productscontaining codeine can behabit-forming and the newrules will help to ensurethey are only being takenby those who really needthem.

Niall O’Shea, head ofregulatory and externalaffairs with GSK in Ireland,said he believed there wasa need for pharmacists tobe allowed more discretionwhen it comes to sellingproducts containingcodeine.

“I think it is a big dropin sales, more than I wouldhave expected to be

honest,” he said.“The guidelines are very

detailed, and it may be thatpharmacists feel compelledto go into a very high levelof detail in interpretingthem... maybe they feelthey have to follow them tothe letter of the law.”

O’Shea suggested thatsome patients who in thepast had access to codeine-based products as one of arange of pain relief optionsmay now be shying awayfrom having to answer thequestions posed by theirpharmacist.

Food Group Greencoresays it expects full-yeargroup operating profit fromcontinuing businesses to beabout 20 per cent ahead ofits last fiscal year.

In a trading updateissued the group said itsperformance in the latesummer months andthrough September was“fully in line” withexpectations and saidgroup performance wouldbe “robust”.

The company has soldoff a number of units aspart of its stated aim toconcentrate more on itsBritish and US conveniencefood businesses.

This year’s disposalshave included the sale of itsmalt business to French co-operative Axéréal Union DeCoopératives Agricoles in adeal worth up to €116.25

million. The plan wasannounced in February and,despite opposition fromgrowers, was approved byshareholders the nextmonth.

In July the company saidit would sell its Dutchconvenience food business,which was expected to netit €12 million, although anexact figure was notdisclosed at the time. Asubsidiary of Europeaninvestment firm Parcom,Convenience Foods Europebought the GreencoreContinental unit.

Greencore said itexpected adjusted earningsper share of about 16.5cent for the year, including3.5 cent of earnings inrespect of its malt, waterand continental businesses.Sales from continuingbusinesses in convenience

foods are expected to be 8per cent ahead of fiscalyear 2009.

Greencore said it

expected to deliver a strongperformance in its ongoingbusinesses in 2011.

Greencore expects profit gain of 20%

Hugh Coveney

Plans to redevelopDublin Citys’ Victorian fruitand vegetable markets andsurrounding area thatcollapsed two years ago arebeing revived by the DublinCity Business Association(DCBA).

Dublin City Council in2005 published theMarkets Framework Plan, a€425m urban regenerationscheme for the north innercity area surrounding theVictorian Fruit andVegetable market, theformer fish market and theDaisy market.

Under the plan, thewholesale fruit market wasto be converted into a high-end retail food market,retaining some wholesalersand introducingrestaurants. The fish marketsite would be turned into acivic square surrounded byshops, offices andapartments, and the Daisymarket would be developedas a three-storey sports,leisure and communitycentre.

The Council, which stillowns the market shouldupgrade it so it would besuitable and attractive forother food retailers. They intime would attractassociated businesses suchas restaurants cafes andcookery schools.

The initial upgrade ofthe Victorian market wouldcost the council less than€1 million and would be acatalyst for the develop-ment of the area.

A sophisticated infrastructure

Something to be getting onwith

Off-licence for Grafton St. M&S

Rejuvenation for citymarkets

Tesco announce openings

Lakeland Dairies’ new€20 million processingplant in Cavan, the largestof its kind in Europe, is animpressive piece ofagricultural infrastructureand an example of the kindof sophisticated dairyprocessing methods thatthose in the industry hopewill make Ireland a leadingplayer in the lucrativeglobal dairy market.

The consensus is thatIreland’s dairy industryneeds to consolidate if it isto compete internationally,particularly when milkquotas end in 2015.Lakeland Dairies has takenthe advice on board,rationalising its operationsin recent years.

Approximately 85 percent of the milk supplied toLakeland by its 2,500farmer-suppliers goes intothe production of foodingredients, i.e. powdered,dry milk which is supplied

to infant formula producerssuch as Danone and Wyethor exported to Africa, agrowing export market forthe co-op.

The remaining 15 percent goes into foodproducts, such as coffeecream and ice cream, themore value-added part ofthe business.

The business model hasevidently worked. Despitethe difficult conditions theco-op made a pretax profitof €1.4 million in 2009,despite a sharp drop inturnover. It is also keepingits farmer suppliers happy,increasing milk prices thisyear.

Aryzta’s conveniencestore perennials - theCuisine de France buns, theTim Horton chocolatedoughnuts, La Brea artisanbreads - have been underpressure as the recessioncrimped consumer budgets.

But food sector analystswere largely buying thecompany’s declaration of itsoperational efficiencies,cash flow generation and

ongoing innovation.Specifically the

company’s “complementary”acquisitions of Fresh StartBakeries and GreatKitchens earlier this yeargive Aryzta something to begetting on with. It can busyitself by integrating theseoperations while thedemand for its productsremains constrained byeconomic conditions.

Marks & Spencer hashad plans to open an off-licence in the basement ofits Grafton Street storeapproved by Dublin CountyCouncil.

The move was approvedsubject to four standard

conditions and despite twomembers of the publicopposing it, saying it wasunsuitable for the area.

Dublin City Council isexpected to spend €40mimproving Grafton Streetnext year.

Retailer Tesco hasannounced the opening of anew store in Kinnegad, CoWestmeath, as part of a€113 million nationwideinvestment plan that wasannounced in July.

The new store willcreate 80 jobs in the town.

New outlets are also setto open in Galway, Mayo,Waterford and Kildare inthe coming months.

TGM

October 2010 3

4 TGm

Gerry Cassidy has seen a lot during40 years in the Irish bakery industry.Cassidy has witnessed dramaticchange since he came to work forAllied Bakeries in Belfast in 1970 as avan boy.

Consolidation has slashed thenumber of large bakeries in theprovince from 12 to three, the biglocal supermarket chains such asStewarts and Crazy Prices havevanished into history and nowadays,the first person to touch a loaf of freshbread is usually the customer, such isthe state of automation across theindustry.

Things have also changed forCassidy: four decades after he firstwalked through the gates at Allied,he’s now national account manager inIreland. In that time, he thinks he’sprobably sold more than 300 millionloaves - spread out end to end, they’drun twice round the planet.

“I don’t think that I’d ever get this

job today without third leveleducation,” he says. “I think it servesto show that you can still work yourway up through the ranks. I’ve sincegone back to study at Queen’s, butthere’s a lot to be said for starting atthe bottom, I think. It gives you a goodgrounding that serves you well as yougrow. They talk about customerservice today as if it’s something new,but if you’re ever sold bread from areal bread van, then you knew what itwas all about.”

In the 70’s, the Tip Top Bakery, asit was known then, operated a fleet of100 traditional delivery vans, whichmade door-to-door sales calls anddelivered their bread to local grocerystores. As a van boy, Cassidy’s job wasto assist ‘the bread man’ with his dailyrounds.

“Bread had been in our family for along time. My grandfather sold breadfrom a horse-drawn cart so it wasn’t abig surprise that I wanted to work in

the bakery industry from an early age.“Looking back at it in those early

days... selling bread was very direct.Door-to-door sales were vital to thebusiness and we were literallycanvassing like politicians to attractnew customers to our brands.

“I loved the job as I’ve alwaysenjoyed meeting people and sellingproducts. At the time I didn’t realiseI’d be in the same company for 40years but here I am and I still lovewhat I do. Even though the businesshas changed dramatically over theyears, I still get a buzz from selling andworking with people.”

Allied produces Kingsmill, thenumber one selling loaf in NorthernIreland. It also makes Sunblest, whichis perceived as a strong local brand;Burgen, a niche product with a localfollowing, and, of course, the ever-popular Veda. A full range of morninggoods, bread rolls and fruit products isalso produced.

An Automated Industry

A N A U T O M A T E D I N D U S T R Y

TGM

There are around 320 peopleemployed by the firm at its Belfastheadquarters and it maintains depotsin Dungannon and Coleraine. Around amillion units a week are shipped allover Ireland from the plant at OrbyLink. With Northern Ireland, thecompany is unique in that it usesentirely its own staff to operate a fleetof 54 wholesale vans, no agents areinvolved in delivery in the products.

“In my view, the priority is alwaysto deliver a total package to thecustomers,” says Cassidy. “We need tobe able to service the whole trade,multiples, non-multiples, convenienceand so on. So customer service isalways a big thing for Allied, it’sparamount.”

Allied Bakeries Ireland’s history inBelfast dates back to 1911 whenJoseph Lowry Stewart opened his firstshop and bakery on the upper part ofthe Beersbridge Road in east Belfast.The business was a success and asecond bakery was opened on the

Greenville Road, also east Belfast, in1929. Progress was rapid and soonthe two bakeries were supplying atotal of 72 Stewart’s Cash Stores witha range of bakery goods.

In 1935, Canadian George Westoncame to Belfast to buy a bakery. In adeal with Joe Stewart, whichincorporated the take-over ofThompson’s Bakery in Ormeau Street.Weston was to have the controllinginterest of what was to become TipTop Bakeries Ltd with ‘Joe’ asmanaging director.

In 1948, Tip Top Bakeries acquiredReid’s Bakery in Coleraine. Businessexpanded at such a pace that a newplant was built in Coleraine in 1969and a new bakery was built in 1972 atOrby Link, east Belfast.

Through Tip Top bakeries, thebrand Sunblest became a marketleader. Tip Top Bakeries becameSunblest Bakeries by the 1970s andAllied Bakeries Ireland in the 90s.

In 1984, the Greenville site wasshut down and the Orby Link site wasdeveloped further - and is today thelargest plant bakery in NorthernIreland. Stewart retired in 1951. Hisgrocery business Stewart’s wasabsorbed by Crazy Prices and sold toTesco.

At 17, Cassidy was able to learn todrive and within three years, he’dprogressed to van supervisor and thento area manager - the youngestmanager in the company at the age of20.

In the mid-70’s, the Tip Top Bakerychanged its name to Sunblest andCassidy was asked to move from retailsales into wholesale management. Nothaving been there before, he opted tobecome a member of the sales teamrather than a manager.

“In all my working life, I’ve neverasked a member of staff to dosomething that I haven’t done myselfand so I was uncomfortable at theprospect of moving into the wholesalemanagement side of the businesswithout actually working in a directsales role first,” he says.

Cassidy did eventually make themove though and became part of theteam that won the bakery’s first salesin the Republic of Ireland. He went onto become national account managerin 1972, by which time the company

had become known as Allied Bakeries.He agrees that over the years the

number of jobs in manufacturing andsales has declined as skill and the useof technology have increased, but hesays that a fascination with the pace ofchange in the industry and the passionof the Allied ‘family’ are two of thefactors that have kept him interestedin the job for the last four decades.

“Bread is part of the staple diet inNorthern Ireland and only has a shelflife of days, so the bakery industry isextremely fast-moving and constantlyre-inventing itself.”

“We’re progressing all the time andAllied Bakeries has invested heavilyover the years in equipment andtechnology to ensure that it remainsthe biggest bakery in NorthernIreland, but is has also managed toretain the feeling of a family bakery.”

Over the years, Cassidy has soldmany familiar brands, from the earlydays of Tip Top White Chief andMighty White, to the more recentsuccesses of Sunblest, Kingsmill andAlisons.

“The success of Kingsmill inparticular since we introduced it in1991 has been phenomenal,” he says.“For years now, it’s been NorthernIreland’s best-selling loaf by a long waywhich, for a premium product, is aremarkable achievement. We’re allvery proud of what we’ve achievedwith the Kingsmill brand.”

“In my view, thepriority is alwaysto deliver a totalpackage to thecustomers.

We need to beable to servicethe whole trade,

multiples,non-multiples,

convenience andso on.”

October 2010 5

6 TGm

N E W S

The Barry Group, oneof Ireland’s leadingwholesale distributioncompanies, has unveiled a€5.5 million expansionplan for its Mallow, Co.Cork based business.

The company is seekingplanning permission for a€3.5 million expansion ofits warehouse facilities inMallow. The expansion willincrease the Barry Group’swarehouse by 55,000 sq.ft., giving the company’sdistribution centre a total200,000 sq. ft. footprintover a five acre site. Theexpansion will create 50new jobs for the localeconomy over a three yearperiod with constructiondue to begin in the firstquarter of 2011, subject toa successful planningapplication.

The Barry Group hasalso confirmed that fournew BuyLo Superstores willopen in Killarney,Waterford, Shannon andDublin between now andthe end of November. Thisrepresents a €2 millioninvestment in fit out andstock and will lead to thecreation of 60 new jobs bythe end of 2010.

BuyLo is a highlysuccessful franchise conceptoffering well-known brandsof food and non-food itemsat discounted prices. Thereare three BuyLoSuperstores currentlyoperating in Ireland – inAshbourne, Co. Meath, inTralee, Co. Kerry, and thenewest in Mullingar whichhad a hugely successfulopening in August.

Jim Barry, ManagingDirector of the BarryGroup, is bullish aboutIreland’s economicprospects in the short to

medium term:“As a country we need

to move beyond thenegative businessenvironment of the pasttwo years and look forwardto a brighter future. Thecontinued growth andexpansion of our businessis tangible proof that thereare significant opportunitiesin the marketplace forcompanies brave enough toseek them out and take

advantage of them”.In business for more

than 50 years, the BarryGroup is one of Ireland’sleading wholesale anddistribution groups. Thecompany employs 250 staffand supplies product toover 700 stores, including237 affiliated stores in theRepublic of Irelandoperating under theCostcutter, Carry Out,BuyLo and Quik Pick

brands. As well asoperating in Ireland, TheBarry Group tradesinternationally in over 10countries. The companyalso services a largenumber of independentretailers and independentoff licences throughout thecountry.

Recently filed year-endresults show that BarryGroup outperformed theentire grocery industry, inwhat was one of the mostdifficult year’s trading forthe Irish grocery sector.

Profit at the Group was€3m (representing 12%increase on 2008), aperformance unmatched byany other large wholesalechain during unprecedentedmarket conditions.

Barry Group Unveils€5.5million expansion plan

As a county we need to movebeyond the negative business

environment of the past two yearsand look forward to a brighter

future.”“

8 TGm

Jim Barry, ManagingDirector of the BarryGroup, one of Ireland’sleading wholesale anddistribution companies, hasbeen successfullyshortlisted for the Ernst &Young Entrepreneur of theYear Awards 2010. TheFinal Winner will beannounced in a televisedfinal broadcast on RTE1 onThursday, 21st October.Jim has been nominated inthe Industry category and isthe only wholesaledistribution business leadernominated in this year’sAwards.

Ernst & Young

Entrepreneur Of The Year isIreland’s most prestigiousbusiness award forentrepreneurs. Recognisedglobally, the award honoursthe most outstandingentrepreneurs who inspireothers with their vision,leadership andachievement.

As part of the judgingprocess Jim took part in atelevised interview, whichwill air on RTE 1 on Friday,15th October next at7.30pm. The overall Ernst& Young Entrepreneur ofthe Year will be revealed inthe televised Final,broadcast on RTE 1 on

Thursday, 21st October.In June, Jim took part in

the CEO Retreat, whichtook place at the WorldExpo in Shanghai. The tripprovided the Finalists withan opportunity to meettheir peers, hone their skillsand share strategicexpertise.

Speaking about the runup to the final, ManagingDirector of the BarryGroup, Jim Barry, says,“Being nominated asFinalist in the Ernst &Young Entrepreneur of theYear Awards is a hugehonour and a real thrill. It’sa fantastic achievement -

not just for me, but for ourwhole business and staff. I’dlike to thank everyone fortheir support - from thefantastic team working withme at the Barry Group,through to our retailcustomers and suppliers.Fingers crossed for theFinal in October!”

This year’s judging panelis chaired by PadraigO’Ceidigh, Chairman of AerArann and recipient of theaward in 2002.

A strong contender

A S T R O N G C O N T E N D E R

Jim BarryAs a family business,

Jim Barry was effectivelyborn into the wholesalebusiness. His FatherJames A. Barry first setup The Barry Group in1955 and the businesssteadily grew from amodest fruit and vegsupplier into a profitablecash and carry supplyingproduct to the wider Corkregion. From a young age,Jim demonstrated thedrive to succeed and afterheading up variousdepartments includingSales, he took over asManaging Director in2002. Since then, he hassuccessfully addressedmany of the challengesthe business faced to helpdevelop the Barry Groupto its current national andinternational scale. Thegroup continues tooutperform the marketand recently announcedgroup profit before tax in2009 of €3m, an increaseof over 12 per cent on the€2.67m it earned theprevious year.

Jim is married withthree children and lives inMallow,

centre: Jim Barry

53% of consumers areplanning a low budgetChristmas

The National ConsumerAgency has today publisheda Christmas budget planneron its personal financewebsite,www.itsyourmoney.i.e. Thiscomes as an online pollcarried out by the NCArevealed that 53% ofpeople are planning a lowbudget Christmas this year.

More than a fifth ofthose who responded to thequestion ‘Are you saving forChristmas?’ said that theyhad been saving a little allyear, while 18% hadn’tstarted saving yet, butwould start soon. Only 6%said that they plan to use acredit card and 53% ofpeople are planning a lowbudget Christmas this year.

Karen O’Leary, Directorof Public Awareness andFinancial Education at theNCA remarked, “It’sencouraging to see thatconsumers are alreadyplanning ahead forChristmas and that very fewintend to rely on credit tocover the cost. However,even with the best ofintentions, it’s easy to getcaught up in the excitementand end up overdoing it.

The best way to avoid thisis to set out a budgetbefore starting to shop -this is especially importantif you are managing on lessmoney than before. If youplan your Christmasspending and stick to yourbudget, you can enjoyChristmas safe in theknowledge that you won’tbe starting the New Yearwith unnecessary debt.”

The Christmas budgetplanner is designed to helpconsumers draw up arealistic budget as theystart to plan theirChristmas spending. It setsout the main costsassociated with Christmassuch as gifts, food, drinkand decorations and alsoincludes some of the lessobvious costs thatconsumers may forget tobudget for, for example thesocial side of Christmas.

O’Leary added, “Itmight seem far too early tostart thinking aboutChristmas, but if you workout much you plan to spendnow, it will allow you tostart saving to reach thattarget. Or, you could startshopping early to spreadthe cost, so you won’t haveto take a large hit to yourwallet in December.”

October 2010 9

Counting thecost of Christmas

Nordic takes the UK by stormNordic Naturals has

taken the UK by stormsince launching a year ago.Following huge success inthe UK, six months ago thebrand was launched inIreland to ensure Irishcustomers also have accessto the same high qualityfish oils.

Nordic Naturals hasseen dramatic growth ofsales month on month sincethe UK launch inSeptember 2009.Customers are attracted tothe brand’s efficacy, whichis supported by extensiveclinical research, as well asthe delicious taste andfreshness of all theproducts in the range.

Distributor Vital Life

International plan toemulate the brands UKsuccess in Ireland, and willreinforce activities with aPR plan designed to driveconsumer awareness ofNordic Naturals.

Steve Richards, salesmanager of Vital Life, says:“Following the great successwe have experienced withNordic Naturals in the UKin the last year, we aredelighted to have launchedthese fantastic productsinto the Irish market sixmonths ago. Now with theaddition of a strong PRcampaign, we plan to driveawareness, demand andsales of Nordic Naturalsproducts in Ireland.”

No dent in NI food and drink sector

The North’s food and drinks sectors have escaped the worstof the recession and could be in a position to create up to15,000 new jobs over the next 10 years according to anindustry body.

Latest research commissioned by the NorthernIreland Food and Drinks Association shows the industrydefied the recession increasing turnover by 3.3 per centto €3.7 billion last year.

TGM

10 TGm

A Northern Irelandbased company hasreceived assistance to helpit develop the exportpotential of its range ofhealthy, gluten-free soups.The Big Pot Company isparticulary interested in theRepublic of Ireland.

The Big Pot Company,which is a based at theFood Incubation Centre atLoughry campus of theCollege of Agriculture, Foodand rural Enterprise, isfocused on the developmentof nutritious, healthy andgourmet soups.

Invest Northern Irelandannounced assistance forthe company to developsales to markets, such asthe Republic of Ireland,during a recent visit to thebusiness.

Big Pot was formed inApril 2009 by ColinMonaghan, an accountantby profession, and foodtechnologist Alison Seaney.It currently produces arange of fresh hand-madesoups, sauces and stew infive-litre pots for foodservice customers such asKerry Foodservice andother deli and coffee shops.Last autumn, it alsolaunched five varieties ofsoup in 500g retail pots

focused on fresh nutritiousrecipes which are listed inmost of the independentand convenience stores inNorthern Ireland.

Maynard Mawhinney,Invest Northern IrelandFood Director says thatInvest NI’s help will enablethis small business to buildon the success it hasexperienced working withKerry Foodservice and to

move quickly on to the nextstage of its development.

“It’s proven it can meetthe exacting standards ofKerry Foodservice in termsof consistently high qualityproducts delivered on timeand to budget,” he said.“The company is targetingits range of soups at agrowth sector, premium andhealthy products usingnatural ingredientsespecially for marketsoutside Northern Ireland,an opportunity which waspinpointed in the recentFocus on Food strategydocument developed by theprivate and public sectors.”

Alison Seaney recentlycompleted a master in agri-food business developmentand her technical expertiseand product developmentflair has ensured productsare developed andconsistently delivered toexacting standards. Retail

soups on offer include RealVegetable Broth, Cream ofChicken, Potato & Leek,Carrot & Coriander, Tomatoand Basil and FrenchOnion.

“We’ve both beenthinking about starting asoup business for sometime when Denny’s inPortadown decided to closethe factory. We put the ideato Invest NI and werereferred to the food teamwho helped us to set up inbusiness.

“We also approachedKerry Foodservice with aproposal that we shouldtake over the production ofa first-stage product -vegetable soup - thatDenny’s had produced.Kerry proved to beimmensely supportive andthe contract enabled us toget the business goingusing equipment purchasedfrom Denny’s.

Northern Ireland company looks South

N E W S

How retailers can capitalise on thecurrent drive to replenish lunch boxes,schoolbags and pencil cases succeed.

The word ‘cool’ has entered themainstream vocabulary in recent yearsas a default expression for everythingthat’s socially acceptable in life,whether it be friends, behaviours orthe latest ‘must have’ technology.

Alas, school uniforms are one ofthose functional necessities that don’tusually tick the cool box and shoppingfor them not only signals the end ofthe summer but creates a flashpointbetween parent and child, a battle ofwills than can upset the householdkarma for days at a time.

This insight - like any goodmarketing insight - should give youthe edge when it comes to thepsychology of buying behaviour,enabling the retailer to reach out toconsumers as effectively as possibleno matter what it is that you’reselling.

The brands that do very well in thiscategory are the ones that a) make theemotional connection with mum andb) make an effort to get on the wavelength of kids.

Here are a few tips for all retailerskeen to capture both and capitalise onthe ‘back to school’ sellingopportunity.

VALUE FOR MONEYYour merchandising needs to ‘big

up’ value for money - that’s a subtlecombination of firstly quality ofproduct. Using the uniform analogy

again here, we are talking about shirts,trousers, skirts and blazers that willpass the playground test admirably forthe first month anyway, after that, it’sthe kids fault. But value for money iskey no matter what the product.

Secondly, price an more specificallyprice promotions. A good oldfashioned two-for-one or twin packoffer on lunchbox essentials is alwaysa worthwhile starter for ten. If thechildren are under ten years of agethen it’s only really mum you have toworry about - but once they becomeentry level teenagers, then yourmerchandising is going to need towork that little bit harder.

EXTRA INCENTIVESThe overriding consideration for

older children is twofold - self imageand social acceptance when they getback to school. Whatever yourproduct, if you’re trying to appealdirectly to this young adult audience,then a competition mechanic can workwell - one that grabs the attention ofall concerned. Buy X and you’ll havethe chance to win this cool iPod or x-box 360, complete with games.

You might even want to set up agaming demo in-store- something tokeep the kid occupied while mumassembles the basket. That’ll give thecore product an extra appeal.

Make sure your Planogram as sexyas possible, perhaps using mobile ‘textspeak’ to convey details of thecompetition mechanic supported bysome extra thematic branding of yourown with images that tell the teenager‘we respect what you’re about’. Throwin a giveaway just to round everythingoff, something relevant, maybe amemory stick, funky pen or a brandedlunch box - but be aware that balloonsand pencils are strictly forbidden forthe over-10’s.

Understanding these behaviouralnorms and keeping it simple shouldgive your offering an extra sizzle, justenough to win over mum and aspiringyoung adults alike.

12 TGm

Understanding thesebehavioural norms andkeeping it simple should

give extra sizzle....

The psychology of sales

“

N E W S

The National ConsumerAgency (NCA) recentlypublished its latestconsumer protection list,which details 57enforcement actions takenagainst businesses,between January and July2010, for failing to complywith consumer legislation.

Breaches were identifiedin numerous sectors

including grocery, hardware,licensed premises andmotor. Of the total of 57breaches, the majority (54)relate to misleading pricingor failing to display prices.These breaches occurredacross a wide variety ofbusinesses, from nationalretailers to localindependent traders.

If the Agency has reason

to believe that a trader isinvolved in a prohibited actor practice, the Agency mayseek and obtain a formalwritten undertaking thatthe trader will comply withthe requirements of the Act.

Ann Fitzgerald, CEO ofthe NCA said, “This is thesecond ConsumerProtection List publishedthis year. The list is a

consumer protectionmeasure, which will informand alert consumers as tothe prohibited practicesthat the Agency hasencountered during thereporting period. It shouldalso serve as a reminder tobusinesses of theimportance of adhering toconsumer protectionlegislation and that failure

14 TGm

NCA TAKES ACTION

N C A T A K E S A C T I O N

to do so carries the risk ofenforcement action by theAgency. Consumers areentitled to be treated fairlyand in good faith bybusinesses and must beprovided with accurateinformation regardingproducts and services. Ifbusinesses fail to live up totheir obligations then theNCA will not hesitate to

take robust enforcementaction.”

Consumer Protection ListSection 86 of the ConsumerProtection Act, 2007requires the NationalConsumer Agency (NCA) tomaintain a "ConsumerProtection List" whichcontains trader names,addresses and details of the

enforcement actions takenby the Agency. The Actgrants discretionary powersto the NCA to publish the listas it considers appropriate.Description of enforcementtools

ProsecutionsThe Agency may prosecutefor breaches of theConsumer Protection Act2007 and enactments listedin Schedule 1 of that Act.

On summary conviction amaximum fine of €3000 orsix months imprisonment, orboth, may be imposed.Stricter penalties apply inrespect of repeat offences.

UndertakingsIf the Agency has reason tobelieve that a trader isinvolved in a prohibited actor practice, the Agency mayseek and obtain a formalwritten Undertaking that thetrader will comply with therequirements of the Act.

This usually involves thetrader giving a commitmentto cease an offendingpractice and to compensateconsumers who have beenadversely affected. If thetrader fails to provide anUndertaking or reneges onthe terms, the Agency hasthe powers to take legalaction, which could entaileither, applying to the CircuitCourt or High Court for aprohibition order or taking aprosecution.

Prohibition OrdersUnder Section 71 of theConsumer Protection Act2007 any person includingthe National ConsumerAgency may apply either tothe Circuit or High Courts foran order prohibiting a traderor person from committingor engaging in a prohibitedcommercial act or practice.

In making the ProhibitionOrder, the Court mayimpose terms andconditions, which itconsiders appropriate,including a requirement onthe trader to publishcorrective statements at hisown expense

Compliance NoticesAn authorised officer of theAgency is empowered underthe Act to issue aCompliance Notice to atrader (who in his/heropinion iscommitting/engaging in orhas committed/ engaged in aprohibited act or practice),directing the trader toremedy the contravention.

The trader has 14 days toappeal the notice to thedistrict court. If no appeal ismade the notice is deemedto have come into effect.

Failure to comply with acompliance notice is anoffence under the Act.

Fixed Payment Notices ("onthe spot" fines)

The Agency has power undersection 85 of the Act to issueFixed Payment Notices totraders for breaches of pricedisplay legislation.

A fixed penalty of €300applies for each noticeissued and this must be paidwithin 28 days. If the traderfails to pay the penaltywithin the statutory timelimit, the NCA can initiateprosecution proceedings.

Fixed Payment Notices wereissued in cases where theAgency considered thattraders were not incompliance with the pricedisplay legislation.

TGM

October 2010 15

16 TGm

More than ever, promotions have akey role to play in persuadingconsumers to part with their hard-earned cash. But how can retailers getthe best from their marketing mix?

The whole area of sales promotionhas had to evolve in recent years.Consumers are being harangued bymarketing messages through everycrack in the wall and selling techniqueshave had to keep pace with customerexpectations at the sharp edge ofconsumer behaviour - the retailenvironment.

There’s no more effective a place toestablish the efficacy of your productsthan face to face. The objective of theexercise is simple - sell more, keepcustomers coming back for more andcreate brand advocates that will talkabout the brands they love andrecommend them to friends -

experience is king.At any one time, we’re all in the

market for something and in thegrocery and drinks trade, especiallywithin the confines of a shop, peopleare pre-disposed to the kind ofmessages that routinely fall to theground through television advertising.The business of consumption isconducted in the supermarket,convenience store or off-licence andgetting a couple of things right willhammer home your advantage everytime.

Successful brands have becomeadept at selling themselves as well astheir products. People buy frompeople hence the reason why goodcustomer service is the differencebetween success and failure. Focusingon the profile of the people taskedwith representing your brand in the

busy aisles is an important point thatis all too often assumed. How thepayload is delivered is as important asthe content and using the right peopleto channel the message will create theconditions in which a positiveexperience and take away is achieved.By investing in training andassessment -the better the customerexperience will be and the sharperyou’ll look as a brand to the peopleyou mean to engage with.

Give some thought to how youwant people to react to what you’retrying to do because the morememorable the experience, the betterthe impression you’ll create and thegreater proportion of mindshare youwill enjoy. Keep things simple. Thereare one or two product attributes thatyou want to stick in the mind of theconsumer so finding innovative ways toreinforcing the message is key. Storepositioning and key messaging on thatall important planogram will serve as amemory aid and when combined withsome sort of giveaway - the moreproduct-relevant the better - return oninvestment will improve aboutthreefold. It’s not always practical orpossible but merchandising can be agreat vehicle for data capture. Justmake sure that if you’re going to go tothe trouble to collect personal detailsthat you use them in as relevant andnon-invasive a manner as possible.

Product placement, merchandisingand sampling need not be expensive.Every retailer relies on all aspects ofthe sales promotions mix. It’sadvisable to use a professional salesand marketing agency becauseexperience can help reduce wastageand make sure the right mechanic isused to target the right people. Startby setting clear objectives andmeasure success by them. Also, don’tbe afraid to plan for the long term.Short sharp busts of activity are oftenthe most effective way to runpromotions but as part of a wider sixor 12-month strategy, will createmomentum and generate incrementalvalue.

Driving themessage home

There’s no more effective a placeto establish the efficacy of

your products thanface to face.“

N E W S

18 TGm

Door-to-Door

Cooley Marks Time

Dealers selling cigarettes illegallywho are costing the State hundredsof millions of euro per year are nowpeddling their contraband door todoor in housing estates.

According to a lobby group set upto resist the black market incigarettes, leaflets are being pushedthrough letter boxes advertisingcigarettes at less than half price.

Retailers Against Smugglingestimates the State is losing out onup to €500 million in taxes per yearbecause of the importation and saleof illicit cigarettes more than doublethe Revenue estimate of €200million.

“Large-scale criminal gangs areinvolved in it. But it’s coming down topeople delivering leaflets throughdoors, offering cigarettes at half priceor less,” Ras campaign managerPaddy Donohoe said.

In some areas the sellers aredelivering flyers in housing estateswith “price lists” for the illegally-branded contraband and a mobilephone number to make a purchase.Prices vary from €40 for 200 Benson& Hedges or John Player Blue to €28for 200 Gold Classic. Similar productsbought legally in a shop would costbetween €95 and €99 for 200cigarettes.

The lobby group says thecigarettes are being hand-rolled inChina, specifically for the Irishmarket, with packaging forged toinclude the Irish government healthwarning The Revenue had establisheda high level internal group to examinethe risks related to tobacco excisewhich include: profiling of passengersand freight to identify smugglers;establishment of a tobacco hotline’and the purchase of scanning anddetection technologies.

While Irish whiskeysales worldwidecontinue to soar, localproducer CooleyDistillery “marked time”in 2009 as bulk salesdeclined.

Its annual reportshows that revenuesdeclined by 25 per centlast year to just over€14 million.

Profits were fair at€3.3 million. The betterbottom lineperformance was due toan increase in premiumsales, which resulted dinhigher margins.

“We have increased

our branded sales andincreased our agedbranded sales so themargins would be up,”said John Teeling,founder of Cooley. “Butwe are struggling stillwith bulk sales.

“We’ve also big costincreases this year inelectricity and grain soprofits will be down.We’ll struggle to reach€3 million this year.”

Cooley has alsoexpanded its workforceto 88, which hasresulted in increasedlabour costs.

“We have a much

bigger marketing teamand a new generalmanager,” Teeling said.“We needed to beef upthe management teamand those costs willcome in this year.”

Cooley hasreinvested its profitsfrom the past couple ofyears into upgrading itsfacilities in Louth andKilbeggan, spending €6million.

“We won’t have anysignificant capex for thenext couple of years. Wehave great facilitiesnow.”

D R I N K S N E W S

John Teeling

Paddy Donohoe

20 TGm

Close to agreement

N E W S

Following secretnegotiations a deal to sellLiffey Valley, the Dublinshopping centre, is likely tobe confirmed within amonth.

Two UK investmentsfunds are due to pay in theregion of €350m for thecomplex and a substantialadjoining site off the M50which has been granted fulltown status.

A blanket of secrecy hassurrounded the negotiationswhich have been ongoingfor several months.

The centres, which isfully occupied, is currentlyproducing a rent roll of over€30 million, a figure that isdue to rise to €34 millionwhen new rents have beenagreed.

Earlier this year SouthDublin County Councilgranted planningpermission for a majormixed-use extension. Theextension is to include alarge supermarket for Tesco,two department stores and60 retail units. If the sale ofLiffey Valley is confirmed, itwill be the largest propertytransaction since EircomPension Fund sold ThePavillions Shopping Centrein Swords for €575m in thesummer of 2006.

Consumer now savvy shoppersConsumers have moved

from being lazy, ill-informedand ripped off to beingfrugal, savvy and morewiling to complain,according to new researchwhich links the change inattitudes to the recession.

The results of theresearch, carried out by theNational Consumer Agency,focuses on how consumersare coping with therecession and howempowered people feelcompared with the last timea major study of Irishconsumer habits wascarried out.

In 2005, theGovernment commissioneda Consumer Strategy reportwhich found that Irishconsumers were beingripped off, loath tocomplain and confusedabout their rights.

But according to theconsumer agency, peopleare now price conscious,thrifty, more willing tocomplain and better moneymanagers. The passivitywhich was once a hall-markof Irish consumers has goneand people are shoppingaround for better prices.

Five years ago aconsumers ranked quality,value and price as themajor influences indetermining how theyshopped. Today price is theprincipal influencing factorwith 70 per cent of thoseasked describing it as themost important element ininfluencing their decisions.

People are also morewilling to complain and aregetting better at it. Theresearch found that 73 percent of consumers weremore confident about theirrights than five years ago.

Three out of four peoplewill continue to look for

cheap deals when therecession ends. Among 25-34 year olds their resolve isparticularly high and 83per cent say that theirfrugality is for keeps.

Ann Fitzgerald, chiefexecutive of the NationalConsumer Agency, said therecession had taughtpeople “a very toughlesson”. she said theresearch showed it was a

lesson: particularly youngpeople are unlikely toforget. People aged under25 today were, effectivelycosseted throughout theirwhole life. They had neverlived through a recession.

The research also showsthat consumers arecontinuing to switchproduct and serviceproviders and when theydo, they save money.

It’s good to know there’s a great local store just around the cornerMusgrave supports more than 3,200 stores in Ireland, the UK and Spain.

Together with our retail partners we are Ireland’s second largest employer with more than 35,000 employees

It means great value on my doorstep

I can drop in on my way back from work

Supporting my local retailer supports local jobs

Local retailers understand local needs

Local retailers support local suppliers

It can help me reduce my carbon footprint

www.musgravegroup.com

Londis – GB only; Mace – Northern Ireland only

22 TGm

The changing economic environment in Ireland has presentedsignificant challenges to landlords and retailers. In order to

sustain quality and quantity in the retail market, it is vital that aspirit of partnership exists between both parties. The current

position has seen retailer cash flow squeezed, trading conditionsdeteriorate and consumers continue to save and curtail

spending. Landlords now have to be proactive in their policiesand dealings with retailers.

A N E W M A R K E T I N G S T R A T E G Y

The case of expecting the quarterlyrent to hit the bank is no longer thenorm. The changing landscape has seena number of retail operators enter thearena, taking advantage of cheap spacein shopping malls. These new playersare prepared to trade aggressively. TheDublin M50 centres are the mostsought after locations for theseopportunities. Nevertheless there areworrying signs that the retail pool isstarting to dry up and landlords mustnow work harder with their existingretailer base. Astute landlords areensuring that their retail schemesremain occupied and vibrant.

The relevance of short-term leaseswith “turnover-only” terms means thatlandlords and retailers are having towork closer together to maximize thespend within retail destinations.Landlords need to be hands-on andtheir teams need to understand thatfootfall has to be converted into salesso that, ultimately, sales can beconverted into rent.

In the past, retail agents utilised thetraditional ‘isochrones’ approach tocalculating retail catchment areas,whereby population levels within a 15-minute, 30-minute or one-hour drive ofa location were assessed in order tomarket retail schemes.

For example, a proposed retailcentre in Athlone would previously haveclaimed a catchment area extendingfrom Longford to Tullamore andencompassing Mullingar. However, wenow know that Mullingar shopperswould rarely shop in Athlone. Thus, thetraditional isochrones approach is nolonger relevant.

As the recession bites, AssetManagement firm Colliers International

Dublin has devised a new businessapproach called “Locum Ireland”. Whilethere is no “magic dust” available to fixdistressed retail assets, Locum goessome way towards making it easier forall parties - landlords, retailers andultimately consumers - to achieve theirretail objectives. Locum devises“destination strategies” for therepositioning of shopping schemes,town centres, tourism attractions etcand breathes new life into them. Theretail programme is a three-stageprocess.

Stage one realigns the catchmentfor a particular centre and determinesthe amount of disposable income(actual shoppers) available. Theapproach is relatively straightforward inthat it identifies the competing schemeswithin the catchment are and theirposition within the catchment hierarchy- either comparison (fashion) orconvenience (food). In addition, itidentifies key employers, demographics,schools, clubs and societies which arethe lifeblood of a shopping scheme.

Locum will also carry out a Swot(strengths, weaknesses, opportunities,threats) analysis which will determinethe most appropriate market positionfor the retail scheme.

Stage two involves the marketingproposition. It has become evidentduring the recession that they type ofmarketing tool that works best is one inwhich the consumer is targeted as closeto the point of sale as possible.

One tactic that has been successfulfor Locum Ireland has involved the useof “hit-squads” distributing vouchers toconsumers at key road junctions nearcentres under our management. It issimply not good enough to place

indiscriminate ads in the paper or onradio.

The modern approach to marketingalso requires the utilisation of retailscheme websites and tools such asTwitter and Facebook, and the targetingof consumers with electronic vouchers.

In simple terms, every euro mattersand every retail scheme is chasing thesame euro within their catchment. It isup to the owner and retailers to maketheir scheme the preferred choice forconsumers in their area.

Stage three of the process sets outto make service charges very, verycompetitive. It is clear that charges ofless than €80.73 per sq m are now thenorm for modern enclosed shoppingcentres. There is an even greater trendtowards turnover based lettings toretailers. These include, rent, rates andservice charges as part of the deal,normally on a short three to five-yearterm.

While rental income is king, thoselandlords that compromise onstandards do so at their peril. The costreduction process must be carefullymanaged, as consumers still expect anenjoyable retail ambience andexperience.

Successful retail centres need to berun like businesses, not pieces of realestate. Market positioning and businessobjectives must be clearly worked out.The retail destination must then have amarketing strategy specifically designedto suit current economic conditions andan ever more competitive environment.

Such strategies will only work if theyare based on a realistic financial modelbased on partnership between the jointinterests in the business.

ANEWMARKETING

STRATEGY

TGM

October 2010 23

24 TGm

Bentley had taken part in theTell Justin scheme, wherebySainsbury’s staff contributed20,000 ways of improving thebusiness. By December, Bentley’sidea, showcased in the televisionprogramme I’m RunningSainsbury’s, was being used in 500stores.

Critics said King, the caretakerof Britain’s oldest supermarket,was either off his trolley or pullingoff the industry’s greatest publicrelations coup.

But the documentaryhighlighted how companies areincreasingly reaching out toemployees for help in reviving salesafter the recession and bankingcrisis exposed flaws in traditionalmacho management hierarchies.

With so many companies goingout of business, the credit crunchand recession forced a shift back toa Darwinian-style survival of thefittest. But managers who focussolely on survival and dismiss theconcept of harnessing theiremployees’ knowledge will suffer asa consequence.

There was a time whenmanagers only went to theirresearch and developmentdepartment, or their marketingdivision if they were searching fornew ideas to add value to thebusiness. However, a small butgrowing number of managementgurus and business bible authorsbelieve this is changing.

Management should be aservice to the workforce, not theother way around. The new order ofthings, is “employees first,customers second andmanagement thirds.

This demands a shift in mindsetwithin an organisation, and beingopen-minded enough to switchfrom the long-standing hierarchalmethod of management.

The new breed of managerswho will be most successful will bethose who have advanced listeningskills and make themselves moreaccessible to employees and ensurethey are not intimidated bymanagement structures.

But getting staff on the side ofmanagement may not prove theeasiest of tasks, especially if acompany has cut jobs and salaries,leaving employees with theworkload of their former colleaguesand less money for their efforts.

If employees can see where thecompany is headed, they are morelikely to be bale to help it achieveits goals. But workers wills questiona manager’s request for new ideasif they see that the motives are notaltruistic or if a manager has ahistory of disrespecting staff.

Success depends on whetherthe owner or manager of thecompany comes across as decentand honest or if the messagecomes from a corporate fear-filledslave.

Managers need to boost moraleamong employees by consistentlycommunicating openly with staffand giving them confidence thatthe company can overcome thechallenges of the recession withtheir help.

That leadership is important. Ifyou are a leader of an organisation,look at what effect you’re having onstaff. If you are always saying ‘wecan’t do this or that now’, stop, andinstead try to be more positive.

According to a study conductedearlier this year, employees whowere engaged with their work weremore innovative than others, sawtheir workload as moremanageable and were more likelyto stay with their employer andprovide better customer service.

Workforce Can Boost RevenueBarbara Bentley, as 55-year-old PA announcer at a Sainsbury’s supermarket in Leeds, became an

unlikely media star last year when, with the help of Channel 4 cameras, she persuaded Justin King, thechain’s chief executive, to adopt her idea of walking the company’s stores and ensuring shoppers knew

about the latest products and offers.

N E W S

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from

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Interesting times lie ahead for the drink industry, and notjust in the next few years, but even further down the line,

and into the next decade where a number of factorsmay come into play that will have a major effect on the

overall make-up of the industry.

2 0 2 5 - A D R I N K S O D Y S S E Y

26 TGm

TGM

October 2010 27

At least, this is the way that AnBord Bia, The Irish Food Board, seesit, as they recently undertook a verydetailed study that tells us how thealcoholic drinks industry may haveevolved by 2025, and whatopportunities it may present to Irishmanufacturers.

Certainly, a study with an outlinelike this will immediately grab theattention of a whole host of consumers(particularly those with a deep interestin the various aspects of the industry),who will be eager to see how thealcoholic drink industry will look like15 years from now.

However, before we go into detail ofhow Bord Bia feel the industry willshape up during the next decade-and-a-half, it is important to outline someof the principles of futures work, whichmakes it easier to understand wherethey are coming from. These principlesare as follows:

•You can't predict the future unlessall the variables are known

•You can identify and understandthe drivers of change that will shapeyour future

• Understanding these drivers andhow they connect will enable you toconsider possible futures

•There are often many clues intoday's world as to what the futurecould be

•Piecing these clues together willenable us to explore the mostplausible futures for your industry

In terms of how to judge what thefuture holds, three stages have beenidentified as being key in determininghow this particular industry is going tolook in the future. The first of theseStages is Trends and driver scanning,which involves conducting 14 one-hourinterviews, which are conducted withindustry representatives and relevantexperts in areas such as design trends,future legislation and sensory trends.Desk research is also used during thisstage, with companies likeEuromonitor, Mintel, Nielsen, TNS,ESRC and the National IntelligenceCouncil being sought for their expertopinion.

The second Stage that they look atis Impact Assessment, which acts as aworkshop to prioritise drivers with thegreatest impact. As a result of a

standard driver prioritisationworkshop process with the Bord Biaand TFC core team, 23 drivers wereprioritised from an initial list of 59.

Finally, the third Stage is calledExploring Implications which is, inmany ways, the most important ofthese stages. It involves anotherworkshop, which helps to identifystrategic priorities, where forces ofchange are reviewed and refined in aone-day workshop with Bord Bia, Irishindustry representatives and otherexperts.

The implications of these forces ofchange were explored with theworkshop participants, which helpedthem become more aware of thedirection that the industry is currentlytaking at the moment. For the record,the eight forces of change outlined are:

1.Competition for Provenance2. Mainstreaming of Connoisseurship3. On-Trade Specialization4. In-Home Sophistication5. Polarisation of Retail6. New Forces of Global Demand7. Social Cost of Alcohol8. Energy-Efficient Production andDistribution.

Given how important theseimplications may well turn out to be,and how they can drastically changethe industry from the way it is set-upat the moment, it is probablyworthwhile to take a detailed look atthese implications, and what impact itwill have on the alcoholic drinksindustry by 2025.

Firstly, in terms of competition for

provenance, Bord Bia believe thatprovenance will still be hugelyimportant by 2025, as it will be morefluid and less tied to specific nationalgeographies or heritage claims. Thereasons that this may be the case isbecause of a greater interest in history,heritage and tradition, growingdemand for local products andservices, as well as democratization ofhigh quality manufacturing.

Under this force of change, it isestimated that consumers will havebecome jaded with near identicalstories of authenticity and copy-catprovenance claims. It will also be moreimportant where a product isprocessed and how much quality it hasoverall, while provenance in generalwill be more local than national, whileat the same time consumers will bemore sensitive to the differencebetween a Siberian vodka as opposedto one from the Black Sea region.

Mainstreaming forConnoisseurship is the next force, andit shows that, by 2025, a morediscerning attitude to alcoholic drinkswill be more mainstream, leading to adecoupling of price andconnoisseurship.

As Billy Steel, a Beverage Managerand ex-barman at Mesa Grill, NewYork is quoted as saying: “The mainchange over the last few years is thatsociety has created a culture thattreats alcoholic beverages like food.The barman has become a 'chef'. Aswith food, there is now an emphasis onfresh ingredients e.g. fresh juices. 10-15 years ago this was not the case”.

28 TGm

2 0 2 5 - A D R I N K S O D Y S S E Y

This sophistication amongstconsumers is an interestingdevelopment that comes aboutbecause of a greater desire forpersonal expertise, greater scrutiny ofvalue offered by brands, and reactionagainst mass brands.

The report by Bord Bia states that,by 2025, connoisseurship will nolonger be about price, meaning that,even at the value end of the market,people will expect brands to have ameaningful differentiation. They also

feel that connoisseurship will be lessabout history and tradition, and moreabout the overall craft andcommitment to excellence that goesinto a product.

As well as this, they see alcoholicdrinks being a lot closer to food in theway that they are thought of anddescribed. On-trade specialization isalso expected to be a big part of thealcoholics drink industry by 2025, asthe traditional notion of “going to thelocal” slowly becomes a thing of thepast. The on-trade will become morespecialized and occasion-based, whichmeans that brands and products willneed to adapt accordingly.

This can come about as a result of;Diversification of leisure interests,Increased focus on experientalconsumption, and Growth of sharedspaces. 15 years from now, on-trade isexpected to have diversified, withthese venues offering more than just adrink, and the alcoholic drink itselfshould work harder to be part of theexperience.

The next force is related in acertain way to on-trade specialization,as in-home sophistication will bepowerful as the shift to in-homedrinking consumption will continue,and the in-home drinking experiencehas drifted more closely towards theon-trade.

This can be caused by increasingrelative cost of drinking in the on-trade, as well as greater interest in“professionalizing the home”. It isexpected that, by 2025, the dividebetween the on-trade and off-trade willbe more permeable, as traditional on-trade occasions move in-home, withconsumers expecting a good dealmore from an experience in-home.

The polarisation of retail is anotherintriguing force, whereby the retailmarket for alcohol has polarized in twodirections, namely, the rising power ofvalue and discount retailer, as well asthe growth of more niche or specialistretail models.

New Forces of Global Demand willmean that opportunities for significantgrowth will come from emergingmarkets in 2025. Spirits brands willneed to work harder to capture theyounger consumer in traditionalmarkets.

A force that will be of great interestto a lot of people is the social cost ofalcohol, as this deals with the cost ofalcohol to a person's income and alsotheir health. This is something that anageing Western society is becomingmore conscious of. This can be causedby increasing focus on healthierlifestyles, greater focus on the socialcost of alcohol, and increased taxationand regulation.

It is expected that total alcoholconsumption will have declined, withgrey markets and counterfeit marketsare much bigger.

Energy-Efficient Production andDistribution may also see overallenergy costs becoming much higher,affecting all aspects of production. Thiswill be compounded by the tax thatcarbon emitters will be required to pay.

As can be clearly seen, these forcesof change can have a major influenceover the next 15 years, and they willhave a number of implications for theIrish industry. They will offer morecompetition, more sophistication andmore specialisation to the industry.

October 2008 29

TGM

In terms of offering morecompetition, it will lead to focus,differentiation and collaboration, whilemore sophistication deals significantlywith consumer insight, branding andinnovation. Thirdly, moresophistication is particularlyimportant, as it means that theindustry is able to understand yourcustomer, they can focus where youcan win and can develop nichepropositions as well.

While all of this will no doubt grabthe attention of most people who viewit, a lot will wonder what the keymessage will be from all this. The keymessage that comes out of it is thepotential value of greater collaborationwithin the Irish alcoholics industry. Theworkshops that are mentioned in thesestages, as well as the one-hourinterviews involved in the first stage,can help people within the industry towork together for a brighter future.

However, manufacturers/retailersneed to realise that they are operatingin a global market and facing increasedglobal competition, which requiresincreasingly sophisticated marketingand distribution expertise. Irishnesshas the potential to deliver meaningfuldifferentiation in a global market,though this does require a clear andconsistent identity, as well as the rightbalance between heritage andmodernity.

Most of all though, collaborating inareas such as research, R&D,marketing and distribution could bemutually beneficial to all players in themarket, so it comes with a highrecommendation.

It is necessary to note that it isdifficult to predict the future, whichmeans that all of the details mentionedwithin Bord Bia's report should betaken with a certain pinch of salt. Also,the future is not static, and continuousmonitoring for signs of change iscrucial.

However, Bord Bia also say thatpreparing for the future is better thanwaiting for the future to happen, andthe eight forces of change do act as agood starting point. Unfortunately, noteverybody will heed this advice, andmay not trust those who look so far

into the future, and might have beenput off by certain assertions that havebeen made about the alcoholics drinkindustry in the past.

In order to reinforce their pointthough, Bord Bia conclude their studywith a quote from John M. Richardson,as it sums up what kind of people arelikely to drive this industry in thefuture, and those who may hinder it.

“When it comes to the future, thereare three kinds of people; those wholet it happen, those who make ithappen, and those who wonder whathappened”.

30 TGm

Michael Barry of Barry &Fitzwilliam claims that they now haveprobably the most successfulprestigious French wines on themarket when you take account of thesuccess of Michel Lynch and Guigalswine from the Cote du Rhone. MarcelGuigal was voted “Decanter Man of theYear 2006” and Jean Michel Cazes ofMichel Lynch was awarded “DecanterMan of the Year 2003”.

The Gabriel Meffre range whichincludes La Chasse du Pape adds toour armoury of French wine and will beheavily promoted this year.

Faiveley Burgundy Wines, JolivetLoire Wines and PREISS-ZIMMERAlsace wines complete what is now themost outstanding portfolio of FrenchWine on the market.

GERMANYBlue Nun is still an old favourite

and will be heavily promoted by Barry& Fitzwilliam/Allied Wines we willoffering a litre bottle for the price of70cl.

AUSTRALIAAccording to a recent AC Nielsen

report it is now the 5th largest brandin the market.

McGuigan wines continue to outperform the market. The Black Labelrange comprises of a Cabernet/Merlot,Shiraz, Merlot, Chardonnay, SauvignonBlanc, Pinot Grigio, Rose as well as

McGuigan Black Label SparklingChardonnay and Sparkling Rose. Therange will have strong above the linemarketing support and particularly inthe National Press and Radio with amajor emphasis on Neil McGuigan’saward at the IWC awards as “the BestWhite Winemaker in the world” and“Winemaker of the year” at IWSCawards.

Brown Brothers wines havegarnered a fantastic reputation fromwine writers the world over and arevery popular with the Irish consumer.

The great Thomas Hardy legacylives on today at The Hardy WineCompany. Quality, flavour andcharacter remain the cornerstones ofits contemporary wines while respectfor Hardy family history ensures thewines benefit from the lessons of longtradition.

Hardys will be backed by a radiocampaign and the major emphasis willbe on the promotion of Hardy’s Stamplitres for the price of 75cl. The HardysBin Range will be used as apromotional price offering.

CALIFORNIAPaul Masson is one of the great

success stories from California in thelast number of years. Sales continue toboom here in Ireland with 2009looking to be a record year. Distinctiveby its Carafe shaped bottle theRed,White and Rose litres retail at€9.99.

After 41 years, Robert Mondavi

Winery still embodies its founder'scommitment to excellence, innovationand creative spirit while continuing toproduce wines that stand in thecompany of the world's finest. TheWoodbridge range will be promotedaggressively.

The Glen Ellen Winery was foundedin 1980 in Sonoma County, one ofCalifornia’s premier grape growingregions. The winery was built on whatwas once called Glen Ellen Ranch sonamed in 1858 by the areas firstsettler Colonel Charles V. Stuart inhonour of his wife Ellen.

Glen Ellen has been credited withinspiring consumers to embracevarietal wines throughout the 1980’sand 1990’s by consistently craftingpremium quality wines such asChardonnay, Cabernet Sauvignon,Zinfandel and Merlot. Today, GlenEllen is distributed in most of theworld’s largest wine importingcountries and the brand producesapproximately 3 million casesannually.

SOUTH AFRICAThe Kumala Range have long been afavourite with Irish consumers.Surrounding South Africa's legendaryTable Mountain is a place of lushfertility and natural beauty. This is thehome of Kumala, where they makequality wines that are full of character.

We have also the Boschendal range“one of South Africa’s iconic wineries,established in 1685 which makes itone of the oldest wineries in the world”said Michael Barry. We have recentlylaunched Boschendal Pavillion range atunder €10, to bring Boschendal intothe value for money category.

NEW ZEALANDA family owned New Zealand

winery. Villa Maria has been NewZealand's leading wine award winner,both nationally and internationallysince the early 1980's. Therepositioning of the Private Bin Rangehas seen sales surge in the last sixmonths.

Nobilo are a well-priced range ofexcellent quality wines from both theNorth and South Islands. Included inthe range is the entry level WhiteCloud.

2 0 2 5 - A D R I N K S O D Y S S E Y

BARRY & FITZWILLIAM

CHILEMont Gras, a former “Chilean

Producer of the Year”, continues togrow strongly. We will be offeringactivity across the full range from entrylevel Blends at €6.99 to the fantasticReserva at €11.99.

The Soleus range of Organic Wineproduced by Mont Gras is also goingfrom strength to strength.

Montes wines are the latestaddition to the Barry & Fitzwilliamportfolio. Robert Parker says “Monteshas figured out how to produce terrificred wines at bargain prices”. Expect tosee a lot of activity on the brand.

SPAINBeronia Rioja wines from Gonzalez

Byass and Raimat from Penedes aretwo exceptional ranges which havedeveloped a cult following here and theAltozano range of varietal continues tomake steady headway.

ARGENTINAWe have the Santa Julia/Zuccardi

range in our portfolio. They are afamily owned winery who produceexcellent wines at all ends of thespectrum, and have a fantastic pricequality ratio. At the top end ZuccardiZeta is an absolute WOW.

We have three Champagnes tobring to the party. Starting with PolRoger which has a “to die for” Rosé.

Charles Heidsieck is carefullyblended and cellared and gives ageneral impression of a vivacious, well-balanced wine. According to thecompany, all those who regardchampagne as something more than auniversal symbol of celebration willappreciate the elegance of the CharlesHeidsieck style, the consistent qualityof its wine and the distinctiveharmonies they create when servedwith fine food.

Champagne and cocktails are neverfar apart. Charles and Piper Heidsieckboth partner well with a dash ofCointreau or Kirsch for a deliciouschange.

Charles Heidsieck is the premiumchampagne from the Heidsieck house.

The company also produces thefashionable and contemporary PiperHeidsieck Grande MarqueChampagne. Both Charles Heidsieckand Piper Heidsieck have wonnumerous awards both here andabroad.

Codorniu, which has a range ofstyles for every pocket continues toperform very well in the sparklingcategory and will l be heavilypromoted for the Party Season.

Barry & Fitzwilliam have a verystrong line up in the Fortified WineSector.

The company represents Harvey’sBristol Cream Sherry, Croft OriginalSherry, Tio Pepe Sherry, Cockburnsand Taylor’s Port. It is not overstatingit when Michael Barry says “that theyare very much the category captains ofthis sector”. The advertising campaignfor Harveys will have its main emphasison a new “Harveys Rocks” campaign.

The Barry & Fitzwilliam vehicledistributes a wide range of premiumspirits. They include Teachers Scotch,Courvoisier Cognac, Rémy MartinCognac, The Famous Grouse FinestScotch Whisky, Jim Beam Bourbon,Vladivar Vodka, Boru Vodka andStolichnaya.

Cointreau – a cool experience onice with a warm afterglow, surroundedby the exotic scent of oranges whilemaintaining its elegant Frenchheritage. Cointreau is the perfectpartner for Cocktails, renowned forlivening up a Margarita, making a longdrink even longer with 7UP or thestylish party Cosmopolitan cocktail.

Bols Distilleries is one of thelargest and oldest producers of finespirits and liqueurs in the world, somedating back to the year 1575. Manyof the unique flavours of Bols liqueursare made with fruit juices, therebycreating the ideal platform for some ofthe best cocktails around. Theselection of flavours available from

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CHAMPAGNE/SPARKLING

PORT/SHERRY

SPIRITS

October 2010 31

32 TGm

Bols is vast and includesBols Blue, Grenadine,Advocaat, Crème de Cacao,Cherry Brandy, Amaretto andmany more. Among theclassics, Bols Triple SecCuracao is essential in aCosmopolitan and Bols Crèmede Cacao (brown) in a BrandyAlexander. More Bols cocktailrecipes are available onwww.bolscocktails.com. A newaddition to the range that isdoing very well is Bols NaturalYogurt.

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

Jagermeister, the famousGerman schnapps, is a hugeseller in the shooter market,particularly among studenttrend setters and is growinginternationally. It is a half-bitter German schnapps with aunique blend of 56 herbs andspices is ideal served chilled ortry the new phenomenon ofmixing it. Sales are up 10% forthe first quarter of 2010 whichis a fantastic achievement, inview of the state of the market.

Two of the most excitingbrands that have been addedto our portfolio are Tia Mariaand Disaronno.

TIA MARIALiqueurs are among the

most versatile products on thedrinks market. And with thegrowth of the cocktail cultureand the popularity of flavoureddrinks, liqueurs have hadsustained growth in this mostvibrant of categories. TiaMaria is a hugely popularcoffee liqueur worldwide,particularly in its mixability incocktails, with coffee or indesserts, or mixed with milkand ice as a luxurious longdrink. It will be heavily backed

by the TV Campaign “Mix It”.

DISARONNODisaronno is described as a

‘cool’ brand. With it’sdistinctive square glassdecanter and smooth almondflavour, it has a secret recipewhich is said to include thepure essence of 17 selectedherbs and fruits with aninfusion of apricot kernel oil. Itis a very “hot brand” in theU.K. off trade and we arehoping to emulate that here.

Corona Extra has growndramatically in both the onand the off trade over the lastfew years and the trendalready this year is for more ofthe same. Corona is currentlybacked by an intensive radio,T.V. and Poster campaign withthe theme “Experience theExtraordinary” and willsponsor the Corona Cork FilmFestival again this year. The12 pack for the off trade hasreally helped its visibility in thissector. “We anticipate a 10%growth in our overall Coronasales for 2010 in a market thatis suffering dramatically.

One 250ml bottle of EchoFalls Spritz is the equivalent tojust one unit of alcohol, so youcan quench your thirst,enjoying one of the refreshingnew varieties; either theChardonnay (white) – zestyand refreshing with a lightsparkle and subtle lemon-limefruit flavours, or the WhiteZinfandel (rose) – lively andrefreshing, with a light sparkleand bursting with sweetsummer berry fruits. Aimedprimarily at the female marketwe feel that this has greatpotential, and will be backedwith both a radio and nationalpress campaign initially.

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BEERS

SPRITZER

34 TGm

2 0 2 5 - A D R I N K S O D Y S S E Y

Molson Coors Ireland is a whollyowned subsidiary of Molson CoorsBrewing Company. Molson CoorsBrewing Company has 350combined years of brewing heritage,offering some of the world's mostpopular beers it has a respectedproduct portfolio that includesalmost 40 distinct beer brandsglobally. In Ireland the Molson Coorsteam are responsible for marketingand distribution of Carling, Grolschand Cobra as well as a growingportfolio of World beer brandsincluding Blue Moon, Kasteel Cruand Zatec. Molson Coors currentlyemploys 23 staff in the Republic ofIreland and 12 staff in theirNorthern Ireland office across Sales,Marketing and Finance. To find outmore about stocking our brandsplease call Molson Coors HeadOffice on 016294101.

Grolsch is a great tasting,authentic, 5% premium continentallager. With its clean, biscuity maltcharacter with hints of aromaticvanilla, Grolsch's spicy flavour owesmuch to the tightly packed grains oflightly-kilned Grolsch malt. Lessfruity than many of its counterparts,Grolsch boasts complementarynotes of juicy red apple laced withalcoholic liqueur and hints of just-struck matches and plump banana.This taste is a great combinationwith mildly spiced dishes and meatyfish such as cod or monkfish.

Cobra, originally crafted inBangalore using a traditional Indianblend of ingredients, including maizeand rice and a little less gas, is theperfect complement to spicy food,particularly curry. It’s also arenowned beer award-winnerbecause in its own unique way Cobracombines the smoothness of ale withthe refreshment of lager.

GROLSCH

COBRA

MOLSON COORS

October 2008 35

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An American white craft beerbrewed in the Belgian style with theaddition of sweet Naval and Valenciaorange peels, coriander and rolledoats for a fuller flavour. It has a bigaroma and taste of sweet orangemarmalade coupled with a hint ofspiciness and large bitingcarbonation and is unfiltered for amore authentic craft beer taste andstyle. Blue Moon is a greataccompaniment to shellfish andspicy fragrant (Thai or Indian) foodswhere the carbonation strips thepalette of hot oils and spices soflavours can come through. It is alsogood with chocolate tarts, cakes,delicate fish dishes and shellfish.

A lightly fragrant, blonde beerfrom the Alsace region of Francecombining French flair and Germanbrewing expertise. Fermented withsparkling wine yeast providing azesty balance between sweet andsour with a slightly dryingmouthfeel. It suits light dishes thatrequire a delicate balance betweensweet and savoury where theKasteel Cru will cut though the dishto enhance the next mouthful. Thisbeer works particularly well with softcheeses, smoked fish and light patesor parfaits.

Zatec's brewing process hasremained largely unchanged for thelast 200 years and these traditionalmethods deliver a balanced andeminently drinkable Pilsner. Themalty aroma has an almost spicycharacter which acts as a precursorto a complex yet balanced flavourprofile. Fruity and woody charactersmix with citrussy tones from thehops but rather than conflicting,these elements combine to deliver asymphonic blast of flavourreminiscent of bitter honey. Zatec isa great accompaniment to grilledfish and fried calamari as well asspicy food as the bitterness cutsthrough to reveal the real flavours inthe dish.

BLUE MOON

KASTEEL CRU

ZATEC

36 TGm

The third Edward Dillon Eurospar/Spar/Spar Express Off-Licence of theYear Awards 2010 took place in TheStillorgan Park Hotel in Dublinrecently. The event was a greatsuccess, with 30 finalists short-listedfrom around the country inattendance. There were three mainawards up for grabs on the nightincluding the Eurospar Off Licence ofthe Year, Spar/Spar Express OffLicence of the Year and the Spar / SparExpress Wine Store of the Year.

Colin Byrd and Kevin White,Eurospar, Passage West, Co. Cork wasdelighted to be awarded the winner ofthe Eurospar Off Licence of the Year2010, while Fergus Giblin, Eurospar,Malahide, Co. Dublin and Des Kee,Eurospar, Laghey, Co. Donegalscooped the runners up prizes. Gerand Denise Canning accepted the prizeof winner of the Spar/Spar Express OffLicence of the Year 2010 on behalf ofSpar Express on Pearse St, Co. Sligo,with the runners up in this categorycoming from Dublin and Leitrim -

D R I N K S N E W S

l-r: Andy O’Hara, Commercial Director Edward Dillon with Eurospar Passage West, Co. Cork winners of theEurospar Off Licence of the Year Award

Winner of Wine Spar Store of the Year are l-r: Marnius Botha, Mary Glennon, Spar Ton

Derek Clarke, Spar, CastleforbesStreet, Dublin 1 and Noel McGowan,Spar, Kinlough, Leitrim. The Spar WineStore of the Year 2010 was, for thesecond year in a row, awarded to MaryGlennon, Spar, Tonlegee Road,Coolock, Dublin 5 with Marie andBrendan Mullen from Spar, BundoranRoad, Sligo receiving the runner upaward on the night.

Each finalist was delighted toaccept a prize of an overnight trip toSitges, near Barcelona, where they willhave the opportunity to visit thecoveted Casa Bacardi Academie.During the trip, the Bacardi Academiewill offer visitors the chance toexperience an educational sessionbased on the creation process ofBacardi’s superior rum, which isconsumed throughout the world, aswell as live guided tours by the Bacardibrand ambassadors.

The winners will also enjoy a trip toCape Town, South Africa where theywill have the opportunity to visit theNederburg Winery and vineyards,meet the winemakers and taste thelatest vintages while enjoying thesights and sounds of Cape Town. Forthe first year the runners-up will

receive prizes for their outstandingachievements, the prize for 3rd placegoes to Eurospar Laghey and SparKinlough, both runners-up will receivea case of champagne. The prize for 2ndplace goes to Eurospar Malahide, SparCastleforbes St, Dublin 1 and SparBundoran Rd, Sligo, they will win a tripto a European city.

Speaking of the association, AndyO’Hara, Commercial Director of

Edward Dillon said, ‘We were delightedto be associated with the 3rd Eurospar/ Spar / Spar Express Off-Licence of theYear Awards again this year. Over thepast three years, the quality of entrieshas risen to a very high standard andwe would like to take this opportunityto thank each of the stores who tookpart and congratulate the winners fortheir great achievement.’

l-r: Des Canning, Spar Express Pearse Road Sligo, winner of the Spar/SparExpress Off Licence of the Year 2010 with Andy O’Hara Edward Dillon

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nlegee Road and Andy O’Hara, Edward Dillon

October 2010 37

38 TGm

D R I N K S N E W S

l-r: Andy O’Hara, Edward Dillon with Fergus Gibbins and EoinCarr, Eurospar Malahide and Fergal O’Hagan BWG

l-r: Andy O’Hara, Edward Dillon with Des Kee, EurosparLahey and Michelle Gilmartin, BWG

EUROSPAR OFF LICENCE OF THE YEAR 2010 – RUNNERS UP

SPAR/SPAR EXPRESS OFF LICENCE OF THE YEAR 2010 – RUNNERS UP

l-r: Tony Reade, Edward Dillon with Derek Clarke and FionaSmith, Spar Castleforbes and Fergal O’Hagan, BWG

l-r: Andy O’Hara, Edward Dillon with Rafal Wochnik and NoelMcGowan, Spar Kinlough and Michelle Gilmartin, BWG

October 2008 39

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SPAR WINE STORE OF THE YEAR RUNNER UP 2010

Liam Nolan, BWG

Andy O’Hara and Gill O’Mara

Maria and Brendan Mullen Spar Express, Bundoran Road, Sligo, Michelle Gilmartn, BWG and Tony Reade, Edward Dillon

40 TGm

The opening of the M3motorway earlier thissummer has led to a 6 percent increase in the numberof shoppers visiting theBlanchardstown Centre inDublin 15, now Ireland’slargest shopping destin-ation.

Jim McKenna of theowners of the shoppingcentre, Green PropertyCompany, said they werepleasantly surprised to see amarked increase in thenumber of “non-foodshoppers” from Meath andCavan since the motorwaycame into operation in June.

The higher level ofbusiness was particularlynoticeable in the fashionshops, which account for ahigh percentage of the 176outlets in the west Dublincentre and the adjoining

retail park.He said Blanchards-

town also recorded a 3 percent increase in footfallduring 2009. He believedthere was now a drift backto the large shoppingcentres from district andneighbourhood centres.

In spite of the overalldrop in consumer spendingin Ireland, Blanchardstownhas managed to let 12shops.

N E W S

M3 Boosts Blanchardstown

Dunnes to reopen Grafton St

Fizz long gone at Britvic

Dunnes Stores is toreopen its high-profile storeon Dublin’s Grafton Streetafter being closed for almost20 months.

The company has beenrefurbishing the building inrecent weeks and isunderstood to be planningto restock it with women’sfashion goods by Savida.There will also be a separatedepartment specialising in

homewares by PaulCostello.

Dunnes also ceasedtrading early last year forma large home furnishingstore which forms part ofthe company’s headquarterson South Great George’sStreet.

It also launched amarketing campaign to letfive adjoining shops but didnot proceed with the plan.

In the summer of 2007Britvic paid a frothy €249million at the top of thecycle. While that gave itownership of most of theleading soft drinks brands inIreland, it coincided with thecollapse of the Irisheconomy.

The fizzh as long sincegone from the deal and afterthree years of strugglingthrough the recession, PaulMoody, chief executiveBritvic, has decided to writedown the value of the assetwhen its full-year results arereleased on December 2nd.

Britvic’s Irish revenuesfell by 5.2 per cent in theyear to the end of October,while the group as a wholerecorded growth of 16.4 per

cent.“Clearly when we were

doing the deal nobody hadthe perspective on theglobal economy that wehave experienced,” saidMoody. “The decision wasthe right one at the time. Westill believe that we have gotthe brands and theinfrastructure to suport ourbusiness.”

Britivc has alreadyextracted €27 million insynergies from the Irishbusiness, and closed itsCork plant with the loss of65 jobs.

Manufacturing is nowfocused on its facility inKylemore in southwestDublin.

Margaret Heffernan

Paul Moody

42 TGm

N E W S

Carlow Brewing Company is anindependent Irish Brewery, founded bythe O’Hara family1996, building on akeen interest in the craft of brewingand a desire to revive a tradition thatwas once common in every town andvillage in Ireland.

Ireland lost it’s local brewingculture towards the end of the 1800’sand since then the market has beendominated by a small number of largebreweries which are now allinternationally owned.

Brewing since 1998, CarlowBrewing Company works to blend thisheritage with modern productionstandards to produce distinctivequality products that consumers willreally enjoy. The brewery is situated inthe historical hop and malt growingregion of Ireland, the “Barrow Valley”region, evident by the many malthouses dotted throughout the countylandscape. While the majority of themalt requirements can still be sourcedlocally the tradition of growing hopsdied out in Ireland many years ago andIrish breweries now import hops,mainly from the UK.

In 2009 Carlow Brewing Companycompleted a major expansion project

moving to its new premises inBagenalstown, Co. Carlow, home of theO’Hara family. The 65hl brew house atthe new plant is a direct scale up ofthat used at The Goods Store in Carlowtown where the brewery previouslyoperated. Our beers are now exportedto many countries around the worldincluding the USA, Canada, easternand western Europe and Scandinavia.

In 2008, alongside the establishedcore brands, O’Hara’s Irish Stout,O’Hara’s Irish Red (formerly known asMoling’s Red Ale) and Curim GoldCeltic Wheat Beer, Carlow BrewingCompany launched it’s limited editionO’Hara’s Celebration Stout to mark the

10th anniversary of the O’Hara’sbrand.

In 2009 the company launchedthe new Extra Irish stout, O’Hara’sLeann Folláin in reaction to the verypositive feedback on their Anniversarybrew. In 2010 the company plans toadd further brews to the O’Hara’srange, including O’Hara’s Irish PaleAle.

Carlow Brewing Company havebeen critically acclaimed by worldrenowned beer critics such as the lateMichael Jackson and won gold medalsat the Millennium InternationalBrewing Industry Awards, internationalbeer festivals including Stockholm andMilan and in January 2009 ourO’Hara’s Irish Stout won Silver at theBTI World Beer Championship Awardsin Chicago.

The Irish for StoutIreland’s authentic traditional brewery based in the heart

of the barrow valley region has created a full bodiedWholesome Stout. Deep black colour with a thick, tan,

almost brown head puts this Extra Irish Stout in a class ofits own.

“At CarlowBrewing Companywe have gone backto basics and brewour beers as they

used to bebrewed..”

•5 star rating; the Irish Timesreview five stouts – March 2009•International Beer Challenge2009 – Highly Commended•World Beer Awards 2009 –

Highly Commended•SHOP 2009, Dublin – Silver

Medal

October 2010 43

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PROFILE

Seamus O’Hara foundedCarlow Brewing Company,an independent IrishBrewery, in 1996 - buildingon a keen interest in thecraft of brewing and havingstudied brewing as part ofhis masters degree inBiotechnology.

Ireland lost it’s localbrewing culture towards theend of the 1800’s and sincethen the market has beendominated by a smallnumber of large brewerieswhich are now allinternationally owned.

Brewery founder,Seamus O’Hara, aims torevive not only that culturebut the qualities found inIrish beers from that eraand beyond. As Seamusputs it “At Carlow BrewingCompany we have goneback to basics and brew ourbeers as they used to bebrewed – with naturalingredients and no artificialadditives. We believe thisleads to a superior qualityproduct, with robust body,taste, flavour and aroma.Compare thesecharacteristics with any ofthe mainstream brands andyou will taste thedifference. In fact, theingredients we do not use(staying away fromenzymes, artificialpreservatives and foamenhancers) typically used bythe larger breweries, helpto set our products apart.”

It is a passion for thecraft of brewing togetherwith the desire to producehigh quality beers, and thepreservation of time-honoured tastes andflavours true to the Irishtradition, that continues toinspire Seamus and driveCarlow Brewing Company.

N E W S

44 TGm

BWG’s UK basket overflowsDrinks company C&C has

reported a growth in salesvolumes of it flagshipMagners cider in Britain forthe first time since 2007.

The group’s interimresults reveal the companysecured a 73 per centincrease in net revenues to€305.5 million in the sixmonths to the end of August.

However, total volumegrowth of 1.6 per centearlier was cancelled out bydeclining sales of Bulmerscider in Ireland, with heresult that net revenuesacross its original ciderbusiness fell 5.3 per cent to€144.2 million.

Operating profit forMagners and Bulmerscombined fell 1.8 per cent to€47.9 million, withBulmers’’ volumes down 3.4per cent.

C&C chief executive JohnDunsmore described the

Irish market as“challenging”, adding thatconditions n both the keyBritish market and Irelandwere “unpredictable andvery tough”.

C&C is expected to makean operating profit of €102-€106 million for its fiscalyear to the end of February2011.

With wholesale grocerygroup BWG having goneunlimited here some timeago, we can’t tell how thebusiness is performing inIreland, although, alongwith its competitors, it mustbe finding the goingextremely tough in therecession

But the picture inBritain appears to bealtogether different judgingby the latest set of accountsfiled by its ApplebyWestward subsidiary, whichsupplies Spar and Eurosparstores in the south ofEngland.

These show thatturnover rose by 6.3 percent to €154.7 million in2009 while its operatingprofit doubled to Stg£2.9million. The after-taxsurplus was an even betterStg£7 million, thanks to thebenefit of a tax credit from

the previous year of Stg£4million.

The accounts say therise in sales was due toAppleby Westward’sstrategy of “recruitingbetter” independent storesto its chain of Spar shopsand “continuing to developtheir stores’ retailstandards”.

“There’s more of apotential slowdown in theUK this year given theissues they have toaddress,” said JohnO’Donnell, finance chief atBWG. “But we continue totrade well in our segment.We’re happy with that”.

Sales at Tesco Irelandrose by 8 per cent to €1.34billion in the six months toAugust 28ht, thesupermarket giant revealed.

The British retailer said6 per cent of this growthwas like-for-like fromexisting stores, while 2 percent was attributable tonew shop openings.

Tesco is planning toopen 11 new stores inIreland by the end ofFebruary 2011 as itexpands its footprint acrossthe country.

Tesco said sales hadrebounded in Ireland due toa number of changesimplemented by the retailerlast year to cope with therecession. “We haveresumed growth and

increased market share,”Tesco said in a statement.

The new stores are partof a €115 million

investment by Tesco herethat will create 750 jobs.Stores have already openedin Kinnegad, CoWestmeath, at Kimmageand Thomas Street inDublin and in Bray CoWicklow.

New stores are alsobelieved to be slated forNaas; Ballybeg inWaterford; Oranmore andNewcastle in Galway;Swinford in Mayo; and atFairview and Fleet Street inDublin.

Globally, Tesco said itstrading profit, a measurethat excludes propertygains, climbed to Stg£1.69billion the six-month periodfrom Stgt£1.55 billion ayear earlier. This was aheadof analysts’ expectations.

C&C cider net revenue drops

Tesco to open 11more Irish stores

BAN WILL HIT SMALLBAN WILL HIT SMALLINDEPENDENTS WORSTINDEPENDENTS WORST

46TGm

Brendan Conway of the NationalFederation of Retail Newsagents isadamant that a ban on the display oftobacco products in retail outlets won’tachieve its stated aims. It will, however,cause radical damage to the livelihoodsof shopkeepers and there are, saysConway, alternative solutions......

The NFRN has just launched amajor new attempt to get the tobaccodisplay ban overturned and it’s callingfor members’ help.

Recently the Federation asked for asman members as possible to write totheir MPs explaining how the measureswill fail to meet their stated healthobjectives whilst imposing further costlyregulations on small retailers which

could force even more of them out ofbusiness.

The following is a letter drafted byNFRN which members are urged toforward to their MP:

The National Federation of RetailNewsagents (NFRN) representsindependent news and conveniencestores and is the largest retail tradeassociation in the UK and Ireland andone of the biggest in Europe. We’re thevoice of the small local business sectorand we’re raising our voice over theproposed tobacco display ban inNorthern Ireland.

The evidence shows that thetobacco display ban damages smallindependent shops disproportionately.It will drive us to the edge financiallyleaving our competitors relativelyunaffected. Advocates say it will work in

10 or 20 years, but it threatens ourlivelihood right now.

Hiding tobacco products fromcustomers will cost the 33,000 smallshops across the UK and NorthernIreland Stg£33m - that’s Stg£1,000per shop - to implement a measure thatwon’t work. To cover this cost, theretailers must generate aboutStg£20,000 additional sales revenue(on an average margin of five per cent).This is a huge sum for a small business.

The ban will severely reducecustomer service levels and transactiontimes; customers will be confused abouttobacco prices and brands and will goelsewhere. In short, such a ban willmake it even harder for us to compete

in close proximity with big brand storessuch as Tesco and tesco Express.

The ban will also put us at increasedrisk of being robbed or attacked as ourvulnerability to crime increases whenwe are distracted or when we have toturn our backs.

There are alternative solutions. Weas a community need to concentrate onsolutions to tackling youth smoking thatactually work. As responsible retailers,the NFRN supports me assures toreduce levels of youth smoking andmembers don’t sell tobacco to minors -but there is no evidence from anywherein the world where display bans havebeen introduced that they reduce levelsof smoking among adolescents oradults.

The best way to reduce juvenilesmoking to make illegal the purchase -

or attempted purchase - of tobacco byminors, as well as proxy purchasing byadults on behalf of minors. Proxypurchasing of alcohol is illegal, so whynot tobacco?

A repot for the EuropeanCommission published recently by DGSANCO clearly acknowledges the“considerable costs” and “substantialeconomic impact on tobacco retailers”of any display ban. Yet the previous UKgovernment didn’t carry out acomprehensive impact assessment onwhat it would cost our members.

We think we deserve at least this.After all, our retailers are not justshopkeepers. They are at the heart oftheir communities, close to where

people live and work, providing a formof value added, personalised retailing.Your = local shop may not be aroundfor long if the tobacco display ban isenforced.

According to Nielsen and thEuropean commission’s Eurobarometerreport, in Ireland in the year after theban came in tobacco sales declinedwhile consumption actually rose byseven per cent.

Independent shops were hit muchharder by the decline in sales thanmultiples or supermarkets. Salesdropped 5.6 per cent in the multiples,8.7 per cent in symbol groups, 7.4 percent in forecourts, 16.1 per cent inindependents and 26.2 per cent inindependent grocers.

The NFRN fears a similar result inUlster.

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October 2010 47

50 TGm

GALA, one of Ireland’s premiumconvenience retailers, recently unveiledthe Group’s own brand range to over200 retailers, at the Gala AnnualConference, in Carton House,Maynooth.

The Gala own brand range consistsof 200 lines and is expected togenerate an estimated €15 million ofsales for Gala in 2011.

Based on current feedback and asuccessful trial period in the market,Gala is predicting that bottled water willbecome the leading product in therange and that a massive 1.5 millionbottles of Gala water will be sold in2011.

The introduction of the Gala privatelabel is one of the first steps in this newperiod of growth for Gala. It centers onsupporting Irish suppliers who have

been selected to partner with theConvenience Group. Consisting of themost in-demand products in theconvenience sector, the Gala own brandoffering is a combination of qualityproducts at value prices. The Group iscommitted to substantially expandingthe range considerably over the comingmonths.

“Gala is a 100% Irish-ownedconvenience Group and it was hugelyimportant to us that all of our newproducts were of Irish origin. Consumerappetite for own brand products hasbeen increasing steadily for sometimeand over the last six months we’ve beentrialing our own brand products tomake sure that the value propositionmaintains the quality that Gala isrenowned for,” commented GaryDesmond, CEO of Gala.

“Price wasn’t the deciding factor ondeciding which suppliers to team upwith; it was choosing a superiorproduct. Gala, as a brand, has grownsignificantly over the last five years, andthe Gala own brand products had to beof an exceptional quality before wecould market them under the Galaname.”

N E W S

(L-R) Gary Desmond, CEO of Gala , Liam Peters, E

(l-r): Liam Peters, Executive Chair; Gary Desmond, CEO of Gala and Mark Flanagan, Managing Director of RDD

GALA’S Own Brand is Odds on Favourite

At the conference, Desmond alsoannounced a major step in thecompany’s distribution through a newpartnership with Retail DirectDistribution (RDD), which is a fullyfledged central distribution solutionacross both Ambient and Chilled forretailers.

Tony Cluskey, Marketing andPromotions Manager at Gala added:“This is providing our stores withconsistent, nationwide productavailability and is an excellentdistribution platform for thedevelopment of ‘Own Brand.”

Reflecting on the current tradingenvironment and future plans,Desmond concluded:

“It’s been a challenging year butoverall our stores are performing well.We’ve lost a few stores along the way,but have replaced these with new-to-Gala progressive retailers, marginallyincreasing our store numbers from2009.

“We’ll continue to meet consumerexpectations through delivering value-for-money offerings and increasing thenumber of promotions. The Gala Groupis now in an excellent position to forgeahead with a group of dynamic retailersand we’ve ambitious plans for the nextfew years.”

Gala’s annual conference was heldat Carton House, Maynooth, wherePaddy Power was the guest speaker,addressing over 200 Gala retailers.

Gala is an Irish-owned convenienceGroup, established in 1998 andcurrently employing over 3,000 peoplein its retail and wholesale operations.

The Gala Group has 300 stores inIreland, of which 200 are Gala franchisestores, and is predicting a 2010turnover of €500 million.

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xecutive Chair; and Paddy Power

Centre receiving his award is Brian King, Proprietor of King’s Gala in Ashbourne

In just under one year of trading, King’s Gala and Gulf Oil Forecourt,Baltrasna, Ratoath has scooped the Gala Store of the Year title beating off stiffcompetition from the 200 Gala stores across Ireland.

King’s Gala walked away with the top title following independently-auditedstore assessments by QHS under the Gala B.E.S.T (Business ExcellenceStandards Tool) programme. The awards took place this week at Gala’s AnnualConference, held at Carton House, and were MCed by RTE presenter, DaithiO’Shea.

“To be awarded Gala’s ‘B.E.S.T’ store is an amazing achievement for King’sGala. Previously, a derelict, dormant forecourt had been situated on the landand we worked tirelessly to develop the site the make King’s Gala the best itcould be,” said Brian King, Proprietor of King’s Gala in Ashbourne.

“Our forecourt and store opened in early 2010 and the response fromcustomers has been phenomenal. We have created jobs for 23 people and it’sdue to them and our excellent managers, John White and Robbie Fisher, thatthe store has been awarded this title.

“I would also like to thank the team from Gala Retail Services for the supportwhich we received since the idea was borne. They’ve been with us every step ofthe way and the Gala systems, procedures and offerings have been instrumentalto our success.”

King of Stores

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The value of Irish foodand drink exports hasincreased by more than 8per cent in the first fivemonths of year and wasworth €3 billion, Bord Biarecently announced.

It chief executive, AidanCotter, said the rate ofrecovery has accelerated asthe year has progressedwith exports in May some23 per cent u on the samemonth last year.

The head of the foodboard said the strongincrease in the value of foodand drink exports had been

helped by an improvingexchange rate, increasedmeat export volumes and astronger exportperformance in thebeverage, dairy andseafood sectors. ”Generally,the export prospects for themajor product categories

for the remainder of 2010are more positive as bettermarket prices, an improvedexchange rate and a morestable economic picturecross key markets underpintrade,” he said.

Cotter said sterling wascurrently 6 per cent

stronger against the eurothan this time last year andon a year-to-year basis wasup by 3 per cent.

The same was true ofthe dollar which is 12 percent stronger against theeuro relative to September2009.

“Both of thesedevelopments are providingwelcome relief to exportersas the UK accounts for 45per cent of exports while asignificant number ofinternational markets tendto trade in US dollarterms.”

Food and drink exports hit€3billion

Generally, the exportprospects for the major productcategories for the remainder of2010 are more positive.....“

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