Retail News JulyAugust 2009

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Retail News is a one-stop shop for Irish grocers, designed, researched and written with the retail manager and store owner in mind. Keep up to date with the latest in industry news, features, profiles and much more.

Text of Retail News JulyAugust 2009

  • July/August 2009

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  • With the economy showing little signs of recovery and each passing week bring-ing news of more job losses, the outlook for Irelands indigenous agri-food sector isnt exactly bright. And yet, Irish food and drink products are on a par with the best the world has to offer, with many being category leaders on your shelves. Supporting Irish sup-pliers isnt just a case of quasi-nationalism or protectionism, however: it also makes good business sense, both in terms of keeping the products consumers want on-shelf and benefit-ing the wider economy. When consumers buy Irish grocer-ies, not only are they guaranteeing that they are getting top quality produce, but they are also helping to ensure the future of Irelands agri-food sector, which accounts for one in eight jobs throughout the country in direct and indirect employment.

    With this in mind, RETAIL NEWS presents a special fea-ture on the quality, range and value of home-grown grocery products (Page 25-37), while Ken McIntyre-Barn, General Manager of Glendinning in Ireland, advises Irish companies on how to survive and thrive in the recession (Page 22). One supply company bucking the trend is Waterfords Dunhill Cuisine, whose turnover, sales and profit are set to grow this year: we find out why (Page 20).

    Elsewhere, Paul Kerrigan, Delivered Retail Director, Musgrave Wholesale Partners, reports on the continued growth of Daybreak (Page 38), we examine the area of waste management and how it can save you money (Page 41) and we analyse the area of security and the difference it can make to your bottom line (Page 60).

    Kathleen Belton,Editorial & Marketing Director.

    inside view

    Managing Director: Fergus Farrell

    Editorial & Marketing Director: Kathleen Belton, email: kathleenbelton@tarapublishingco.com

    Editor: John Walshe johnwalshe@tarapublishingco.com

    Chief News Reporter: Pavel Barter Wine Correspondent: Jean Smullen

    Advertising Manager: Aaron Stewart

    Published by: Tara Publishing Co. Ltd., Poolbeg House, 1/2 Poolbeg Street, Dublin 2.

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

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

    Subscription to Retail News: 110 plus VAT Email: tracy@tarapublishingco.com

    Origination by: Rooney Media Graphics Printed by: Graham & Heslip

    Reproduction without written permission is strictly prohibited.

    T A R A

    Over 50 years

    serving the Irish

    grocery trade.

    July/August09Contents

    1

    The Irish Question

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    Contents.indd 1 24/07/2009 10:40

  • News4Tobacco Legislation Causing Confusion in the Trade.

    5ABFI Welcomes Alcohol Report.

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

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

    8NCA Survey Reveals Grocery Prices Dropping.

    Shop Profile16Mike Traceys Daybreak store in Limerick City is proving a massive success,

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

    CSNA AGM18At its recent AGM, the Convenience Stores and Newsagents Association focused on some of the burning issues for the trade in 2009.

    Fresh Convenience Foods20Dunhill Cuisine is bucking the recession and thriving amid the current economic gloom. Edward Spelman, Managing Director, tells us why.

    Special Report22Ken McIntyre-Barn, General Manager of Glendinning in Ireland, offers strategies for FMCG companies to survive the recession.

    Irelands Own25Stocking home-produced groceries on your shelves has never been more impor-tant for the continued suc-cess of Irelands agri-food industry and meeting con-sumer needs.

    The Retail News Interview38Paul Kerrigan, Delivered Retail Director, Musgrave Wholesale Partners, on the changing face of Daybreak.

    Irelands Top Selling Wines52A special promotion focusing on some of the best-selling wines through-out the country.

    On The Vine57Grow your wine sales with The Guru; Wine Market Update 2008; Febvre Launch Wine For 2.

    Forecourt Focus58Since its redevelopment in January of this year, Sean Kinsellas XL Stop & Shop forecourt in Wexford Town has seen a sales surge.

    Security60The benefits to your bottom line of installing an effective security system.

    Shelf Life64All the latest news and gossip from the trade.

    Regulars

    10Industry News

    51Drinks News

    63Whats New

    Sectoral Reports

    41Waste Management

    44Back To School: Stationery

    48Back To School: Best Sellers

    54Paper Products

    3

    ContentsJuly/August 2009

    38

    44

    5

    July/August09Contents

    Contents.indd 2 24/07/2009 10:40

  • 4NEW tobacco legislation is causing some confusion amongst retailers, RETAIL NEWS reports. Interviews with various parties involved in implement-ing the new rules, which ban the adver-tising of tobacco in shops, also claim the restrictions could push consumers toward the illegal trade in cigarettes. As part of the ban, new provisions of the Public Health (Tobacco) Acts 2002 and 2004, cigarettes must be hidden in closed, plain containers, with cigarette signage removed from display. Ireland follows in the steps of similar legislation in Canada and Iceland, but it is the first EU nation to ban the display of tobacco products.

    Emma Fitzgerald of the Office of Tobacco Control (OTC) told RETAIL NEWSthat retailers have, on the whole, been positive about the changes, and feed-back from environmental health offic-ers suggests most retailers are compli-ant. However, some outlets appear to be seeking quick-term solutions: covering up their cigarette display units with paraphernalia including shower cur-tains, black sacks, curtains and card-board.

    According to Derek Mooney, Sales Director of JTI (Japanese Tobacco International), the former Gallaher Group, which handles brands such as Silk Cut, B&H and Camel, over 70% of JTI retail customers are now com-pliant: However, a number still have open units that do not comply with the legislation.

    Tara Buckley, RGDATA Director General, has also noticed incidences of non-compliance. My understanding is that some of the small players, with no connections to the tobacco companies, have done their own thing to cover up the packages. One of the people that work for me said their local shop had black plastic bags hanging up over the cigarette gantries. Most of the other members were sorted, and had new dis-play cabinets before the deadline came into place. Most of those were sup-plied by the cigarette companies for no charge.

    We posed the question to Emma Fitzgerald in the OTC as to the validity of shield-ing display units in this manner. Unfor tunate ly , that doesnt fit the criteria of the legis-lation, she said. It has to be in a closed container and out of view. Some places are putting shuttered doors on them, that close. But a shower cur-tain, black sack or curtain? Absolutely not.

    Although many retailers have qui-etly adapted to the new rules, smaller stores have had to fork out around 1,000 - the price of an automatic gan-try with six sliding doors - while others claim HSE officers have been giving retailers mixed mes-sages.

    Most of the stores in Ireland have electronic vend-ing machines in place for the last 10 years, said Deirdre Healy, Corporate Communications Manager, John Players. Those vending units had sealed containers anyway. So most of those stores were fine. Its the small shops that are in difficulty. Some of those shops have had to contact local carpenters to be compliant. Its a bit of an unlevel playing field.

    Vincent Jennings, Chief Executive of the CSNA, adds: Even the people who have a relationship with the tobac-co companies dont necessarily get free cabinets. If the relationship is not con-

    sidered sufficiently profitable or strate-gic, they can suffer.

    Some cigarette companies have been actively involved in helping trade part-ners. Since February 2009, for example, JTI visited over 3,800 outlets, removing advertising fascias and pack displays from retail vending machines and shelv-ing bays. All other point of sale advertis-ing was removed in June. Although this is a costly measure, it is to ensure com-pliance before the deadline. Meanwhile, John Players issued guidelines for retailers in the first few months of the year, ensuring their retailers were com-plaint. The government, on the other

    July/August09News

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