The No1 Bagged Salad

Fresh fromFlorette

In this months issue

NOVEMBER 2011

2 NEWS

4 ONE OF THE BEST KEPT SECRETS

6 HIGH STREET SPENDING DOWN

12 TRANSITION COMPLETE

8 COOLEY BRINGS POITIN OUT OF SHADOWS

14 HOW MANY VEGETARIANS ARE THERE OUT THERE?

18 BUSINESS CONFIDENCE WEAKENSM.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 TGM FOCUS - FROZEN FOODS

34 NEWS

36 INCREASED OPTIMISM

44 DUAL SUPPORT FOR GALA RETAILERS

48 WINNERS ALL THE WAY

58 TGM FOCUS - CHEWING GUM

60 TGM FOCUS - GRANOLA BARS62 TGM FOCUS - CONFECTIONERY

66 END OF THE ROAD FOR IRISH CHICKEN

40 TGM FOCUS - HERBS

42 TGM FOCUS - FRUIT & VEGETABLES

The results of the annual Bord Bia industry survey showedincreased optimism among food and drink manufacturers.

With numerous groups pushing meatless Monday or othercampaigns, the Vegetarian Resource Grou (VRG) wonderedhow often Americans are eating vegetarian meals.

Gala, through it’s association with the Stonehouse buyinggroup, has access to buying power in excess of €2 billion.

With 265 stores under its belt, the Barry Group see plentyof room for expansion.

2 TGm

The Brand ActivationAward celebrates the mostcreative and well thought-out sponsor activity for2011’s music festivalsthroughout both Irelandand the UK.

The Arena contained astage built into the housefacade, flanked by twocabana inspired bars. Inthe centre of the Arenastood El Coco, a replica ofthe palm tree which standsoutside theBacardídistilleryin Puerto Rico.

This year’s activiationalso included acomprehensive onlinecampaign centred onFacebook activity. Bacardibrought to life a series ofonline ‘likes’ as chosen byIrish Bacardi fans.

The annual UK FestivalAwards are an opportunityfor the public, media andmusic industry (Ireland &UK) Throughout July and

August, fans were askedwhat they would like to seeat Electric Picnic; fromfavourite music to choice ofcocktail and from conciergeon-site service, to whatcloses the party.

The Awards werepresented in a galaceremony in LondonsRoundhouse. Uniting theentire music industry underone roof for one night, thisevent is a uniqueopportunity to honour andrecognise those who investcolossial amounts of workand creativity making musicfestivals happen throughoutIreland the the UK.

Bacardí has been asupporter of music inIreland for well over threedecades. In that time, thebrand has been involved insponsoring many eventsand creating stand-aloneBacardí properties of itsown. Whether it is the

sponsorship of ElectricPicnic or Sea Sessions, apartnership with Black EyedPeas, the creation of one-offevents or simply providingnew and exciting music toour Facebook fans – musicand events remain at thetop of Bacardí ’ssponsorship and marketingactivations.

Commenting on thenomination, TiernanO’Morain, MarketDevelopment Manager for

Bacardi said:“We are delighted with

Bacardí Ireland’s Award atthe Festival Awards Wecreated a destination venueat Electric Picnic thatfestival goers wanted tospend all weekend at. TheBacardi experience was anauthentic idea stemmingdirectly from Bacardi rum’sheritage, which helpeddeliver against a genuineconsumer need.

N E W S

Bacardí aWinner

4 TGm

N E W S

Moy Park, the poultrycompany based inCraigavon, has a turnoverof almost €1.2 billion andis one of the largest private-sector emloyers on theisland, and the biggest inthe North.

Nigel Dunlop, MoyPark’s managing director,will sell about 1m turkeysthis Christmas. Moy Park,owned by the giantBrazilian Marfrig Group, isthe big bird of the irishpoultry industry.

It empolys 10,500people, with 4,500 of thosebased in Northern Ireland,where it has four plants.The rest of its staff are splitacross its nine otheroperations in England,Holland and France.

Moy Park suppliesmainly chicken products toall the large-scale retailersin Ireand and Britain, andmost of the big ones inEurope. It entered theturkey business in 2010when it bought Ballymena-based O’Kane Poultry forStg£25 million.

“In terms of publicprofile, we’re quite anunderstated business,” saidDunlop. “It’s in our nature.We’re one of the Irish andBritish food industry’s best-kept secrets.”

In October, Moy Parkreported sales for last yearof Stg£921m, with pre-taxprofits of almost stg£28m.

Dunlop, a formerexecutive at the tobaccocompany Gallaher, whichmakes Benson & Hedgesand Silk Cut, hasrestructured the companysince taking over the topjob from industry legendTrefor Campbell in 2008.

A few months afterreplacing Campbell, Moy

Park was bought by Marfrigfrom OSI, a US food group,in a deal worth up to€690m - Marfrig operatesin dollars.

More than half of MoyPark’s revenues come fromsales of fresh poultry toretailers, with most of therest derived from its foodservice division, which sellsto restaurants, includingMcDonald’s. It also has aconvenience foods business.Moy Park is supplied by800 farms - 500 of those inNorthern Ireland - andalthough most of its salesare under the retailers’private labels, Moy Park isthe biggest-selling chickenbrand in the south.

It even has its ownchichen stud farm.

“We have a wholeseparate strand to ourbusiness, where we breedthe grandparents of thechicks. Those birds are thensold to other poultryprocessors, where theybecome the parents of thechicks. We’ve got 20%market share for this inEurope.”

Starting out Dunlopapplied to Gallaher, then asmall UK cigarettemanufacturer, as amanagement trainee. Herose to become its directorof operations. Dunlop was amember of Gallaher’s mainboard when it was boughtby Japan TobaccoInternational for Stg£7.5min 2007.

He got a call from MoyPark which was loss-makingwhen he arrived, as thecompany struggled underthe weight of thecommodities spike that hasforced up prices for itschicken feed.

Dunlop embarked on a

“root and branchreorganisation of thebusiness”, changing its suiteof products using a“category” approach, suchas the meat-free and bakerycategory, the coatedproducts category, and theready-to-eat category.

“It’s just the way I haveto do things. I have tochunk things up intosmaller pieces,” he said.“The different divisions havetheir own responsibilitiesfor finance, marketing andadministration. That givespeople ownership of theirown area. They all report tothe parent company at thetop of the group. It is morestructured.”

As most of its productsare sold under privatesupermarket labels, MoyPark is light on brands,although Marfrig is nowpushing Seara as its globalfood products brandoffering.

Marfrig and Seara aresponsors of the 2014football World Cup in Brazil.Dunlop says this will alsoprovide opportunities forthe Moy Park moniker.

The company is aimingfor organic growth over thenext few years, “although ithas to be profitable

growth”, says Dunlop. Thereare no more acquisitions onthe horizon, but thecompany could be“opportunistic” if somethingcomes along.

One of the best-kept secretsWe have

a wholeseparatestrand to

ourbusiness....”

“

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6 TGm

High street spending down

N E W S

More bad news expectedfrom the office of nationalstatistics on high streetspending

Figures due out from theOffice of National Statisticsare expected to show retailfigures down on the highstreet.

The Confederation ofBritish Industry anticipatesNovember sales figures tobe considerably lower thanlast year. With the weatherset to take a turn for theworse and more peoplefeeling a pinch in theirpockets,online shopping isset to surge as people lookfor good deals.

Consumer spending fellin real terms this October.The total sales value roseoverall marginally, by 0.6per cent, but this was offsetby inflation, which has risento around 5.2 per cent,showing growth to bestagnant. Further figuresrevealed, dire results for thehigh street as, clothing andfootwear sales volume fell by2.1 per cent compared tothe same period last year,this is the largest fall sinceApril 2008. However, onlinetrading increased its share oftotal retail sales to 9.6 percent – its largest ever.

The number of highstreet casualties is expectedto rise this month as morehousehold names andleading corporations are stillsuffering. Recent reportshave shown profit warningsissued by the Britishretailers are at alarminglevels.

Kevin Flood, CEO ofsocial shopping leaderShopow said, “While manystores are still struggling togrow in the on-going difficultclimate, we see an

appreciation of online retailincreasing and so we’reseeing innovation, with manystart-ups focussing onenhancing the bargainhunting and onlineresearching experience forcustomers.”

Social shopping hasemerged as an exciting trend

in online retailing as manyhigh street stores look toengage consumers. Itinvolves the use of socialnetworking to sharerecommendations, sharediscounts, post reviews andask for advice on productsbefore purchase.

Regular web shoppers

are now empowered to talkabout their purchases in anhonest way.

Social shopping withShopow enables shoppers touse their trusted networks tomake informed decisions butalso makes online shoppingmore interactive andenjoyable.

FRESHNESSWRAPPED UP

BRENNANSBREAD.IE

D R I N K S N E W S

Cooley Distillery, theEuropean Distiller of theYear, has launched a newrange of Poitín productsto showcase thetraditional Spirit ofIreland.

The origin of distillingin Ireland dates backover 1,000 years. Beforethere was Irish whiskeythere was Poitín – a clearIrish spirit famous for itsalcohol strength. Inhomage to this ancientIrish Spirit, CooleyDistillery, Irelands onlyindependent whiskeydistiller, has released anOrigin series of Poitínproducts to revive thetraditional Spirit ofIreland.

Poitín wastraditionally distilled in asmall pot still and theterm is a derivative of the

Irish word pota, meaning"pot". Normally distilledfrom barley grain orpotatoes, it is one of thestrongest alcoholicbeverages in the worldand for centuries wasclassified as illegal inIreland. Poitín is one ofthe most long-establishedspirits in the world with arich and varied historyand is exclusivelyassociated with Ireland.

Jack Teeling,managing director ofCooley Distillerycommented,

“Poitín is at the originof Irish spirits and Irishwhiskey in particular.Over the years its hasbeen demonised becauseit was illegally producedand the end productlacked consistency,quality and

8 TGm

Cooley brings

John Teeling

credibility.“We have produced a

quality Poitín product usingancient techniques in ouraward winning distilleryallowing consumers oftoday try this ancient Irishspirit with confidence asthey are getting a highquality product.”

Cooleys’ first Poitínrelease is triple distilled insmall copper Pot Stills froma traditional Irish Pot Stillrecipe of malted andunmalted barley. Bottledstraight from the still withno maturation produces asurprisingly smooth spiriteven for one that is bottledat 65% abv. Poitín like anyquality white spirit lendsitself to be consumed in avariety of ways, neat, withwater, with mixers and as acomponent of cocktails butdue to its alcohol strength it

should be enjoyed inmoderation.

“As Poitín is basicallyun-aged Irish whiskey spiritand we hope to revive thePoitín as a nationalproduct. A lot of othercountries around the worldcelebrate and market theirnational high alcohol spirits.Brazil have Cachaca, GreeceOuzo, Bulgaria Rakia andthe Czech’s havesuccessfully revived

Absinthe after it waseffectively outlawed for over75 years. We want to bringPoitín out from the shadowsand let Irish people have anational white spirit theycan be proud of,” continuedTeeling.

Consisting of only 1,800bottles this small batchrelease will be initiallyavailable through the CelticWhiskey Shop and DublinAirport as well as throughgood independent off-licences.

Poitin out of ShadowsPoitín is

at the originof Irish

Spirits andIrish whiskey

inparticular....

We haveproduced a

qualityPoitín

productusing

ancienttechniques

in our awardwinning

distillery...”

“

TGM

November 2011 9

10 TGm

N E W S

A Cornish gourmet piecompany is celebrating itsfirst Christmas in businesswith the launch of twoproducts specially createdfor the festive season.

Launceston basedGrumpies of Cornwall havedeveloped a stress freealternative to thetraditional Christmas dinnerwith a handmade turkey,cranberry and stuffing pie,and a roast vegetable,stilton and chestnutversion.

Co-founder of Grumpies,Trevor Shea said: “We’vespent six weeks developingthis pie and we’ve tested somany trying to get it rightthat by the time it comes tosit down with my family andenjoy my Christmas dinner,I think I’ll enjoy roast beef!

“In all seriousness, nowthat the pies are ready togo, we’re looking forward tohearing the feedback of ourcustomers.”

Grumpies duo MarkCarne and Trevor Shea willalso be showcasing theirpies at events aroundCornwall in the run up toChristmas.

The first chance for thepublic to try the new pies isin Fowey on Saturday 26and Sunday, 27 Novemberfor the annual ChristmasMarket.

“We’ve developed theseproducts with our chefs andwe thinks it’s important thatwe get out there ourselvesand introduce them to ourcustomers face to face.”

The following weekendthey will be at St IvesChristmas market onDecember 3 and Bude onDecember 4.

After their success atthe Falmouth OysterFestival, Grumpies arereturning to Falmouth fortheir final Christmas marketappearance from December15 - 18.

Reflecting on their firstyear in business, co-founderMark Carne says: “We’vebeen massively encouragedby the response of thegeneral public to these pies.The feedback we’ve had hasbeen extremely positive.The challenge we’ve gotnow is to make these pieseasily available to our fanbase.”

All Grumpies productsare made to the ethos of‘serious about food’ andcontain the best localingredients, including localvegetables, Cornish ale andmeat.

Looking ahead to nextyear, Carne says: “We aregoing to continue trying ourvery best to increase thenumber of outlets fromwhich these pies areavailable. We’re also goingto be working harder thanever in the kitchen. As wellas a completely new rangeof products, we’re also

going to make a gluten freepie as we’ve had severalrequests from customers.”

All Grumpies productsare free from artificialadditives, preservatives andprocessed ingredients, tocreate a product with ahome cooked quality.

The pies can bepurchased in selected delisand farm shops aroundCornwall or online.

Grumpies of Cornwallare serious about food.From their bakery inLaunceston, they produce arange of six pies using thebest available Cornishingredients including localvegetables, Cornish ale, andmeat from a prize winningnearby butcher.

Grumpies also avoidartificial additives,preservatives andprocessed ingredients tocreate a product with ahome cooked quality to it.

Grumpies launch stress free Christmas dinner

The unique freshly baked taste of Brennans has once again reaffirmed our status as Ireland’s number one bestselling bread. In fact, as Ireland’s favourite family bread we’ve retained our ranking of number three in the Checkout Top 100 Brands. So, to get your sales onto a proven winner, make sure you stock Brennans.

The unique freshly baked taste of Brennans has once again reaffirmed our status as Ireland’s number one bestselling bread. bread we’ve retained our ranking of number three in the Checkout Top 100 Brands. So, to get your proven winner, make sure you stock Brennans.

BRENNANSBREAD.IE

T R A N S I T I O N C O M P L E T E

n his first day at ceoof Morrisons inMarch last, Wicklow-born Dalton Philipsstood on the stairs inthe main hall ofMorrisons’ Bradfordheadquarters toaddress 2,500 staff.Back then, he was a

surprise appointment - experiencedinternationally, but an unknown in UKretail. Like other chief executives, hemade the usual commitment to staffthat his door would always be open.

Philips, who lives in York leads acompany that holds a 12 per centshare of the UK’s supermarket trade.In doing so, it has concentrated onfood, rather than drifting into non-foodgoods.

“We are incredibly vertically-integrated. There isn’t a retailer like usanywhere else,” Philips says. “We haveour own slaughterhouses, we have ourown bakeries, we have our owncooked-meat plants. We bought aflower business earlier this year.”

Despite higher sales and a risingshare price, Philips like other retailers,is coping with major changes in theshopping habits of customers, who arecutting their cloth to cope with fallingincomes and pessimism about theirown futures.

“We’re noticing a real change inconsumers behaviour. A third of ourcustomers get to the end of the money,they have nothing left over,” he says.

“Half of our customers who go intoa shop check the price on every singleitem that they put into the basket.They look at the price and they do themental maths of whether they aregoing to put it in their baskets.”

Until 2010, Philips says Britishconsumers “shopped around abudget”; now they “shop to a budget”.One customers recently sent him oneof her receipts from a Morrisonsshopping trip that totted up to €117exactly.

Tougher times are changingeverything in supermarket retailing.Customers now spend 20 per cent

longer shopping as they check prices,they are buying ingredients for morehome cooking and shopping patternsdiffer widely in each week on themonth. In the past, the first week inthe month after pay day “rose likethis”, says Philips, gently raising anarm in the air. Now the curve in thefirst week “is like this”, he goes, raiseshis arm dramatically upwards.

“You’re seeing a big shop at thebeginning of the month when peoplehave money, and then towards the endof the month you are seeing it reallyslow down,” he says, with credit cardsales declining sharply.

“So we are having to change howwe promote during the month, with bigbulk deals like soap powders andstaples at the beginning of the month.Towards the end of the month there isno point putting a bulk offer ofdetergent because people don’t havethe money.”

Gloomy economic times arenothing new, but this one is different,

Philips believes.“I suppose the difference now is

that people don’t really see an end insight. People who are tied to budgetsare thinking: ‘How am I going to makeends meet.’ The middle classes seethemselves only going one way.

“We had 2008, obviously, and wewere in a recession then but people’sdisposable incomes weren’t comingdown,” he says. “But we have had sincethe biggest drop in a generation sincethen.’

Traditionally strong in fresh food,Morrisons last October launched its“M Kitchen” range of signature dishes,prepared with Michelin chefs. At thesame time, its entire 11,000-strongrange of products is beingprogressively updated.

Equally, Morrisons is adapting tothe UK’s ever-changing demography.“We have to be able to target ourrange to the communities.

Back in 2004, before he arrived,Morrisons, with 100 stores, took over

TRANSITION COMPLETE

O

12 TGm

Safeways, with 400. It was aproblematic marriage that led to aseries of profit warnings andculminated in the departure fromMorrisons of its founder. He wasreplaced by Marc Bolland, who laterwent on to lead Marks & Spencer.

Philips had previously been chiefexecutive for the Galen Weston-ownedBrown Thomas for two years beforemoving to Canada as chief operatingofficer of Weston’s Loblaws operation,the largest food retailer in Canada.

Acknowledging that the integrationof the businesses was difficult, Philips,however insists. “As it turned out, itwas a fantastic acquisition, a greatacquisition, because we got thisfootprint now that we didn’t have.”

Historically Morrisons has been anorth of England company, though ithas spread south. Still, there is muchroom to grow. “There are seven millionhouseholds that don’t have aMorrisons in their trade area. There’s

a lot of white space for us. We have a12 per cent market share, one that hasgrown every month this year. So thereis a big opportunity there to take theoffer and predominantly, but notexclusively, that is in the south ofEngland,” says Philips.

He is coy about Morrisons’ interestin frozen-food retailer, Iceland.Morrisons is one of six firms, includingAsda-owner Walmart, and a clutch ofprivate-equity firms, to show interest inthe controlling stake in Iceland, whichis being sold off by two Icelandicbanks.

TGM

Toughertimes are

changingeverything insupermarket

retailing.Customers nowspend 20 percent longer

shopping as theycheck prices....

“

November 2011 13

Marc Bolland

14 TGm

With numerous groups pushingMeatless Mondays, Tofurky Tuesdays,or other campaigns to cut back on meatone meal or day per week, theVegetarian Resource Group (VRG)wondered how often Americans areeating vegetarian meals. In order to findan estimate, VRG commissioned HarrisInteractive to conduct a nationaltelephone poll.

Seventeen percent of Americansstated that they "don't eat meat, fish,seafood, or poultry at many of my

meals (but less than half the time)" and16 percent don't eat these foods atmore than half of their meals (but notall the time). Thus, one-third (33%) ofthe country are eating vegetarian mealsa significant amount of the time (inaddition to committed vegetarians),which certainly bodes well forcompanies producing vegetarian foods.

In a 2008 VRG national telephonesurvey, 40 percent of participants saidwhen eating out they often order a dishwithout meat, fish or fowl. For folks

trying to get a handle on the populationvery interested in vegetarian foods,though not vegetarian, the Baltimore-based VRG estimates that the figure tobe range between 30 percent and 40percent of the country.

Among the highlights of survey,methodology for which appears below,approximately 5 percent of the countrysaid they never eat meat, fish, seafood,or poultry. About half of thesevegetarians are also vegan, meaningthat they also don't eat dairy or eggs.

Howmany vegetarians are there out there?

H O W M A N Y V E G E T A R I A N S A R E T H E R E . . . . . . .

Methodology

The survey was conducted by HarrisInteractive by telephone within theUnited States on behalf of theVegetarian Resource Group betweenMarch 30 and April 3, 2011 among anationwide cross section of 1,010adults (aged 18 and over). Figures forage, sex, race, education, region,number of adults in household, andnumber of telephone lines wereweighted where necessary to bringthem into line with their actualproportions in the population.

In theory, with probability samplesof this size, one could say with 95percent certainty that the results for theoverall sample have a sampling error ofplus or minus 3 percentage points.There are several other possiblesources of error in all polls or surveysthat are probably more serious thantheoretical calculations of samplingerror. They include refusals to beinterviewed (e.g., non-response),question wording and question order,and weighting. It is impossible toquantify the errors that may result fromthese factors.

TGM

How Often Do Americans Eat Vegetarian Meals?6% One meal per week4% One full day per week17% Many of my meals, but less than half the time16% More than half my meals, but not all the time5% Never eat meat, fish, seafood, or poultry48% Thus we estimate this is the audience for good tasting vegetarianfoods that fit individual needs48% Say they eat meat, fish, or poultry at all my meals(The remainder didn’t know, refused to answer, or said none of the above.)

Never Eat Meat, Fish, Seafood or PoultryMale Female5% 6% One meal per week2% 5% One Day per week13% 20% Many of my meals, but less than half the time15% 17% At more than half my meals2% 2% Never (though not vegan)3% 2% Never eat meat, fish, poultry, dairy, eggs

Don't Eat Meat/Fish/Seafood, Or Poultry At More Than Half Of My Meals16% Total15% Male17% Female17% Northeast16% Midwest17% South13% West

November 2011 15

16 TGm

An organic foodcompany, was among thecompanies found to havebreached the Advertisingstandard Authority ofIreland’s code of conductover the past three months.

Organic dairy companyGlenisk was rapped on theknuckles for a claim madeby a consumer in an onlinead that organic food was“100 per cent safe” andanother statement fromt hesame consumer that organicfood was free from

pesticides.The authority said it

condsidered the reference to“100 per cent safe” was aclaim rather than an opinionand that Glenisk wasrequired to substantiate it.It also said while thepesticides organic farmersare allowed to use are“naturallyy occuring”, theyare still pesticides, soclaiming organic food is freefrom pesticides wasmisleading.

Fruit Distributor TotalProduce has increased itsstake in South African fruitexporter Capespan.

The move comes asCapespan announced it wasin negotiations which, “ifsuccessfully concluded, mayhave a material effect on theprice of the company’ssecurities”.

The developmentscomes a few months aftertwo other shareholders inCapespan embarked on a

bidding war for SouthAfrica’s biggest fruitexporter.

While Total Producecould potentially bid forCapespan, anotherpossibility could Zeder, aninvestment company whichspecialises in agriculturalassets.

Total Produce indicatedin September it waspursuing investmentopportunities in both newand emerging markets.

Shoppers planning tobuy vouches as last-minuteChristmas presnts are beingwarned about the potentialpitfalls.

The National ConsumerAgency has published a listof tips to help peole get thebest value from such gifts.

The voucher industry isworth about €300 millionannually in the Republic butup to 25 per cent of allvouchers sold each year arenever cashed in eitherbecause they expire beforeconsumers get to use themor they are lost or simply getforgotten about.

This means about €75million is wasted annually onvouchers which never getused.

The agency asked allpeople buying vouchers tocheck the expirty dates onthem and the terms and

conditions before makingany purchase.

Research conducted bythe agency found that 36per cent of consumers planto buy vouchers thisChristmas but almost a thirdnever check the expiry datewhile a smaller numberagain loook at the terms andconditions in any greatdetail.

“For many last-minuteshoppers, a gift voucher is apopular present as they givethe recipient flexibillity andchoice,” the agency’s chiefexecutve, Ann Fitzgeraldsaid. “However, manyvouchers have expirty dates- some last just six months-and maybe less if it is froman online deal set, so it isimportant to check thesetime limits before you buy.”

She also remindedpeople that if they buy or get

a gift voucher and thecompany goes intoexaminership, liquidation orreceivership, they aretreated as an “unsecuredcreditor”, and may not beable to redeem the vouchers

and urged people to redeemvouchers as soon aspossible. The agency saidpeople who receivedvouchers this year shouldcontact the retailer if theexpiry date is not clear.

N E W S

Potential pitfalls of vouchers

Food ads breached standard

TP buys Capespan

18 TGm

Exporters’ order booksremain resilient in the faceof turmoil in the euro zoneand slowing overseaseconomies, according to theIrish business andEmployeres’ Confederation(Ibec).

The survey shows thatbusiness confidenceweakened in the Republicover the last three months.However, the study alsoshows that exporters are ina better position thanbusinesses that only tradein the domestic economy.

“The ongoing turmoil inthe euro zone has clearlytaken its toll on Irishbusiness over the pastthree months, but theoutlook for exports remainsfairly strong as order booksof this sector are

particularly resilient,” saidFergal O’Brien, theorganisation’s economist.

“Overall, businessconfidence levels have fallensharply since the autumn,however, with the majorityof businesses now having anegative outlook for boththe wider economy andtheir own businesssituation.”

The survey shows thatall major exporting sectorsare positive about the nextquarter. Both the food anddrink and informationtechnology industriesexpect export sales toincrease over the next threemonths, the survey shows.

Overall 24 per cent ofthe 400 businessessurveyed expected toincrease their work forces

over the next three months.Howeveer, overall businessconfidence in the Republicremains weak. The surveyshows that confidence fellto minus 28 this quarterfrom minus 13 in theprevious three-monthperiod.

Business people areeven more downbeat aboutthe next quarter, with

confidecne reading at minus29. A minus figure int hesurvey indicates that Ibecreceived more negativethan positive answers toeach issue raised in thesurvey. The greater number,the more negativeresponses it received.

The results are based onresponses from 400 Ibecmembers.

N E W S

Business confidence weakens

Overall, businessconfidence has fallen

sharply since the autumn....all major exporting sectorsare positive about the next

quarter“

20 TGm

N E W S

Bottom of the list?

€15m for half share

Glaxo poised for sale

Total Produce the fruitdistributor will pay up to€15 million for a half sharein Dutch fruit distributorFrankort & Doning BeheerVenlo and its subsidiaries.

The irish company hasagreed to pay an initial sumof €6 million for the stake,with additional sums of upto €9 million dependent onthe company’s performanceover the coming years.

Frankort & KoningBeheer Venlo, whichoperates primarily in theNetherlands, Germany and

Poland, recorded turnoverof €296m last year and hasbooked an average profitafter tax of €2.7m over thelast three years.

The deal is subject toregulatory clearance.

Ceo of Total roduce CarlMcCann said theacquisition would help toincrease his company’spresence in key Europeanmarkets.

The deal comes lessthan a month after thecompany upped itsinvestment in Capespan.

One of America\sbiggest buyout firms isclose to clinching a €1.8billion deal to buy tophealthcare brands fromGlaxo Smith Kline, whichemploys about 1,500 staffat its plants in Cork andWaterford.

Thomas H Lee Partners,backer of companies suchas Dunkin’ Donuts, hasemerged as the frontrunnerto buy products includingAlli, the weight-loss pill,Solpadeine, the painkiller,and Nytol, a sleep aid.

The buyout firm hasexperience of thepharmaceutical sector, asone of its current

investments is WarnerChilcott, the drugdeveloper.

Glaxo wants to sell theportfolio to concentrate ona smaller number ofinternational consumerbrands, including Panadol,Sensodyne and Lucozade. Itfollows the example ofother large consumer goodscompanies, such asUnilever and Procter &Gamble, which have cuttheir ranges in recent years.

Glaxo, one of theworld’s largest drugscompanies, hopes to wrapup the bidding by the endof this year.

Food company Aryztamaintained its full-yearguidance as it reported a9.6 per cent rise in revenuefor its food business, helpedby acquisitions.

However, underlyingrevenue growth was slightlydown on the previousquarter, with the Zurich-based company posting a4.4 per cent rise inuderlying revenue,compared to a 4.7 per centincrease in the last quarterof its 2011 fiscal year.

Recently acquiredcompanies Honeytop, aBritish flatbread business,and Canadian companyMaidstone Bakeries,contributed 6.7 per cent inrevenue growth.

“We have not seen anysignificant change in the

trading environment sinceSeptember,” said OwenKillian, ceo. Revenue inAryta’s Food Europedivision, which represntsabout 46 per cent of grouprevenue and includes theCuisine de France brand,rose by 92. per cent in thequarter to €316m.

Aryzta’s North Americanbusiness, which accountsfor about 47 per cent ofrevenues folllowing twomajor acquisitions in 2010,increased by 9.1 per cent inthe quarter to €327.1m.

Spare a thought for theState’s supplieres. Therecent proposal to increasethe cap on the maximumsize of supermarketsoperating in Ireland is thelatest in a number ofproposed changes that mayultimately affect primaryproducers and suppliers tomultinationals.

While the proposedchanges to Retail PlanningGuidelines will first andforemost have an impact onsmall retailers, which arealready struggling tocomplete with large, oftenout-of-town supermarkets,its impact may be feltfurther down the supplychain.

While the prospect ofmore internationalsupermarkets entering theIrish market may be goodfor competition - and forconsumers as prices areforced down - there is a fearthat suppliers will bear thebrunt of price cuts.

Similarly, the news ofthe forthcoming twopercentage point hike inVAT is bound to affectsuppliers. The fear is thatsupermarkets, is absorbingthe price increases, will turnto supliers to make up thedifference.

Suppliers already facehuge demands in attemptsto get their products onsupermarket shelves.

Aryzta record rise in revenue

Owen Killian

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Frozen FoodsFrozen Foods

Frozen PizzasThe frozen pizza market is one that

has shown strong growth in the lastfew years, and is a market that hasprospered in spite of the decliningeconomic situation, which has grippedthe country in recent times. Indeed,many might say it has performed wellbecause of the current economicclimate in a way, because now a lotmore people are staying in rather thangoing out to eat.

Frozen pizzas offer plenty ofconvenience for Irish consumers, asthey are easy to cook, they don't taketoo long to prepare, and they arerelatively cheap as well. In a studyundertaken by Mintel in March 2007,the following findings were discovered:

“The pizza market is showingstrong growth, of 6% over the lastyear, driven by the performance of thechilled sector. Pizza has traditionallybeen seen as a convenient, quick tocook and easy to clean up option”.

For anyone who has managed tosample the taste of frozen pizzas in thepast, they will probably be hardpressed to disagree with this notion,and the growth level mentioned hascontinued to carry on in a similar vein.Other chilled packaged foods have alsoexperienced good growth in the past.

However, since 2008, as the fullextent of the economic decline beganto take effect, certain categories withinchilled packaged foods experienced aslow-down in line with the generaltightening of consumer discretionaryspend. Convenience does remainimportant to a lot of Irish consumers,but it was always inevitable that theirwould be a reduction in spend and thegreater need for value would impact onthe choices that consumers make.

Some would probably expect thatpizza would suffer the same problems,yet pizzas have shown remarkableresilience during this sticky period, andare currently performing at a prettydecent level considering the challengesthey (and other markets) are presentlyfacing. The ease-of-use and self-contained nature helps to make pizzasthe ultimate convenient product, whileit also remains popular with cash-

strapped consumers, who can see thepotential value that pizzas offer as ameal option from a money point ofview.

While value is clearly veryimportant in enabling manufacturersto sell their brands, probably thebiggest factor behind frozen pizzas'current strong position is the increasein at-home dining occasions, as thishas created far bigger scope for moreindulgent pizza products as well as themore standard ones.

With staying in effectivelybecoming the new going out, the pizzaand bottle of wine combination isbecoming ever more common in Irishhouseholds. This option is, of course,also available in Italian restaurantsacross the country, but crucially theyare also far more expensive as well,which would explain why many peopleare going for the former option asopposed to the latter.

Great strides have also been takenin product development in pizza in thelast couple of years, which has resultedin a number of consumer needs beinganswered, ranging from health topremium ingredients and differentrecipes.

Within the frozen pizza market inIreland, there are five big brands who,between them, have a 90% share ofthe market overall. There is aconsiderable amount of competitionbetween these brands, and those whoare up at the very top of the peckingare usually made to work hard for theirposition.

Owned by British companyNorthern Foods, the Goodfella's brandwas first launched onto the Irishmarket in 1993. Now, 17 years downthe line, Goodfella's has firmlyestablished themselves as the numberone pizza brand in Ireland.

Goodfella's have always put greatpassion into the way that they createtheir pizzas (which are suitable for allages and gender), and from the verybeginning they set out to ensure thattheir products are more desirable toconsumers than similar productsprovided by other brands and, so far, itappears to be working.

What helps them in being so

successful is the way that they havecreated a number of sub-brands, eachof which provide for a certainconsumer need and/or want. Thesesub-brands are Goodfella's Delicia(Thin Stonebaked);

Deeply Delicious (Deep Pan); LaBottega (Premium Ciabatta); Solos(Individual Stonebaked); Friday Fever(Large 11.5 Inch Stonebaked)

This vast choice shows the diverserange that Goodfella's offers to theirconsumers. All of Goodfella's pizzas inIreland are produced in their facilitiesin Naas, Co. Kildare and also inLongford, where they presently employa total of 508 employees.

Goodfella’s launched the NewUltimate Takeaway Pizza in November.Extensive research was carried out toensure that Goodfella’s deliver theperfect authentic takeaway pizza.Unique recipes created fromgenerations of experience, improvedbase made with quality ingredientsand dusted with semolina to give arustic, authentic look. The launch willbe supported with a mixture of heavyweight through the line media.

As a leading manufacturer of frozenfood products in both Ireland and theUK, Green Isle foods are noted as astrong supplier of all things frozen.Being a part of the same NorthernFoods' plc that houses Goodfella's,Green Isle Foods has experiencedstellar growth over the last decade,and currently has an impressiveportfolio of big brands in their artillery.

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As champions of high qualityconvenience foods, Green Isle FoodsLtd. Is the market leader in a numberof categories, though it does fall justshort in this particular market. Theirproducts are ideal for busy families,with their frozen pizza offeringsproving to be extremely popular withgroups of people.

Green Isle has recently had aworkforce of some 1,000 (though thishas been cut by some 25%) and fivestate-of-the-art manufacturing plants,and over 50% of its sales comes frombranded goods. However, theCompany also has a substantialprivate label and co-pack contracts inIreland, UK and Europe, partneringwith large multiples, through tosmaller chain stores, and family ownedshops.

They have managed to gain amarket share of around 15% in thepast year or two, and it is expected tostay at this general level for the nextwhile at least.

Currently ranked third in the Irishfrozen pizza market, Dr. OetkerRistorante Pizzas are quick and easy toprepare, and offer plenty ofconvenience for an expectant andeager Irish consumer. They currentlyhave a strong presence in a number ofdifferent countries across the globe,covering the continents of Europe,Asia, Australia, North America, andSouth America.

Dr. Oetker Ristorante Pizza offers ameal solution for the consumer whodemands both premium quality andconvenience. With its unique thin andcrispy base and a variety of the finesttoppings, Ristorante delivers anauthentic Pizzeria flavour. It also onlytakes 10 to 12 minutes to cook,meaning that a customer won't have towait too long for their taste buds to besatisfied.

Dr. Oetker's Bistro range ofauthentic baguettes is also quitepopular with Irish consumers and it isjust as easy to prepare as well. With anice crunchy outside lair and a softinside base with delicious toppings,Bistro Baguettes are extremelyconvenient and are perfect for a familyoccasion, when a multitude of people

can sit down and sample the uniquetaste that Dr. Oetker has to offer.

Frozen ChipsThe frozen foods market is one of

the most recognisable categories inthe overall Irish market, and it hasmanaged to perform well even duringthe current economic climate, whichhas seen certain categories suffering afew setbacks to say the least.

In the past year, frozen food hasexperienced something of arenaissance with the belt-tighteningshoppers among us being particularlyenamoured with frozen foods in recenttimes. Consumers are increasinglytaking on board the widely spreadmessage that frozen foods are as goodas more expensive chilled options,which had led to an increase in salesfor most types of frozen foods.

On top of this, buying frozen canalso help consumers to cut back onfood wastage. Indeed, it was reportedlast year by the Irish Independent thatthe average person throws out some€1,300 worth of goods each yearbecause they are past their sell-bydate. This statistic may well shockquite a few people, and now thatpeople are becoming a lot moreconscious about recycling and also howmuch money they spend, a dramaticincrease in this figure should not beruled out.

Frozen chips is one of the sectors inthe frozen foods market, and it hasachieved good growth in the last fewyears. One major reason why they areperforming at good levels is because ofthe convenience that is provided byfrozen chips, as it is very simple toprepare and it can be ready toconsume in a very short space of time.

It also provides good value formoney, which is something thatconsumers will be looking for as theytry to find the best way to save moneyin any way they can, as their incomemay not be as strong as it was before.

In the past, the frozen chips markethas had a value of 33 millionapproximately, and it has managed tomaintain this level heading into 2010,with a strong provision for growth

always a live possibility. Their volumehas also been quite strong with recentfigures of 23,700 million kilogramsshowing just how large a market frozenchips is.

There are plenty of well-knownbrands in this market, with some ofthem being recognised instantly byconsumers, with one or two proving tobe synonymous with the use of frozenchips.

November 2011 23

Frozen ChipsAlways a well-performing and

highly-regarded manufacturer, McCainhas continued to dominate a verycompetitive frozen potato sector, andcurrently holds a 71% value share ofthe frozen oven chip market. It also hasa 33% value share of the potatospecialities sector.

The ongoing 'It's All Good'campaign, which McCain have beenworking on for quite some time, hashelped to reinforce McCain'sreputation for making good, tasty,favourite food from the simplest ofnatural ingredients.

McCain Home Fries are probablytheir most recognisable product, andthey remain the number one sellingoven chip in Ireland and, with a varietyof cuts available in the McCain HomeFries range, it is a favourite with all thefamily. To build on the success of itsoriginal Oven Chips, McCain haslaunched a new TV campaign, whichemphasises the simple ingredients thatare used in their production, e.g. 'justpotatoes and sunflower oil'.

In potatoes specialities, McCain iscurrently the brand leader in the roastpotatoes, wedges and shapescategories, and they are constantlydelivering new innovative products,demonstrating its commitment togrowing the frozen potato sector.Amongst these innovations has beenthe introduction of a new McCainsimply Gorgeous range, which

comprises Chunky Chips and RoastPotatoes, which are basted in goosefat.

1st Choice Unislim chips andready meals offer the Irish consumera broad range of ready meals andfrozen chips of the highest quality.

As a major category leader, 1stChoice Unislim Chips are presentlyavailable in two different varieties:Original Oven Chips and FamilyChunky Chips.

1st Choice's also has a core rangeof frozen vegetables, which are nowavailable in brand-new consumerpromotional packs. This rangecontains a new 750g selection thatrepresents terrific value and includes1st Choice Country Mix, Luxury Mix,Leaf Spinach and Whole Green Beans.This, along with their frozen chipsselection, helps to being a newdimension to the freezer, but it alsomaintains excellent retail sales,delivering premium quality as well asensuring that retailers' profits are keptat a steady rate.

The company is also quick toacknowledge the importance thatinnovation and fresh ideas has in theeffort to convince consumers that theirbrand is the best. They offer plenty ofconvenience, and are ready to eat

within minutes, which is undoubtedlythe key to their success.

Green Isle is currently Ireland'snumber one brand in the frozenvegetable category, and their frozenchips range is proving to be just aspopular as the other products thatthey sell to Irish consumers. Theirsuccess has been driven by a range ofvariants that are available in 'Buy anytwo for €2.50' range.

Though chips are not part of thisoffer, it does nevertheless give vitalcoverage to what Green Isle can offerto Irish customers, and this kind ofdeal can lead to people looking at theother products that are on sale fromthat particular brand.

The brand has performedextremely well over the past three tofour years, during which time thebrand has grown in value by some30%. Last Christmas also saw GreenIsle providing even greater value toIrish consumers with a selection ofproducts that offers on 50% extra freeattached to them.

A new selection of products havebeen released by Green Isle, such as animpressive stir-fry range and mushypeas as well, which have proven to bequite popular since their release.

Frozen ChipsFrozen Chips

24 TGm

Frozen chips aren't being leftbehind though, and earlier on in 2010their Oven Crisp Chunky Fries 1.5 kgproduct was on sale for just €2, whichwas excellent value when you considerhow much convenience is provided byfrozen chips.

The produce in the Green Islebracket is developed in accordancewith the best suppliers, and theyensure that all the vegetables that areused for their products are frozenwithin two hours of harvesting. Noother processing is applied an allproducts are free from artificialflavours, colourings or preservatives.

Frozen Potato Products

Potatoes have, for a long, long timebeen a major part of Irish households,with families the country over seeingthem as an ideal supplement for mostmeals. Though consumers are cuttingback on a number of food products, asa result of their income being lowerthan it was previously, it is unlikely thatthe potato market will suffer as badlyas other markets during this period asmost people would see potatoes asmore of a necessity than a luxury.

For a long time, there has been alink between Ireland as a nation and

the potato crop as the number onestaple item in the national diet.Indeed, until quite recently the potatowent unchallenged as the mostimportant source of carbohydrate inthe Irish diet. However, in the modernera, in line with broader changes ineating habits and experience ofinternational food tastes, there hasbeen a steady increase from othercarbohydrate based foods such as riceand pasta products.

Of course, this kind of competitionis quite healthy for the Irish market asa whole, but it is something that majorpotato manufacturers will be eager tokeep an eye on. Nonetheless, theimportance of potatoes in the Irish dietwas highlighted in a North/SouthIreland Food Consumption Survey,which found that potatoes contributed11% of the total food energy intake,whilst providing 20% of dietary fibreand 27% of Vitamin C intakerespectively.

A major point made in the studypointed to the fact that there is anexcessive dietary fat intake in the Irishdiet, which has been linked to anincreased risk of coronary heartdisease. The survey also discoveredthat the average intake of freshpotatoes was 158g per person per dayacross the island.

Of course, there are different kindsof potato products, namely freshpotatoes and frozen potatoes. Thoughfrozen potatoes may not seem like themost accessible of the two, they dohave a niche position in the Irishmarketplace regardless.

As they are, speciality frozen potatoproducts in Ireland represent a smallbut developing market opportunity.Small niche markets exist to supplyspeciality potato products to the Irishretail and catering markets. Thesetend to be typically unique productofferings or specialist manufactureditems e.g. croquettes, roast potatoes,waffles, hash browns, potato wedges,shapes and baked potatoes.

The main frozen potato brands thatcan be found in Ireland include GreenIsle, Birds Eye, McCain, Rita Ahern,First Choice and retailers private label.New product innovations and brand

launches have been driving the frozenspeciality potato market, and thecontinuance of these promotions bymanufacturers is arguably the key forthe frozen potato market to keep ongrowing.

Unquestionably the biggest playerin the frozen potato market is McCain,who are growing the frozen potato andpizza categories by launching a newrange of innovative products. They are,of course, also a very prominentmember of the frozen oven chipsmarket, where they currently hold a71% value share. They are quite strongin this category as well though, with a33% value share of the potatospecialities sector highlighting just howformidable they are in this area.

Amongst their current innovationsare McCain Footballs, which are ballsof creamy mashed potato, lightlyprepared with sunflower oil for a tastycrunch. McCain feel that this can, withthe correct application, become a firmfamily favourite.

They also have a number of newlaunches, such as McCain PizzaMaximo and McCain Pizza Anytime,which appear to be perfect for sharingor snacking. Pizza Maximo's productsare deal for those looking for a spicybite, while McCain Pizza Anytimecomes in three popular varieties, all ofwhich are ideal for light lunches orafter-school snacks.

Though these products are part ofanother market completely, if theybecome popular, they may have thepower to draw attention to McCainofferings in other categories like frozenpotatoes and frozen oven chips.

An already well-establishedselection fromMcCain in this market isMcCain Prepared Potato range, whichhas been given an eye-catching newlook in order to drive sales offavourites like McCain Wedges,including Lightly Spiced, Sea Salt &Black Pepper and Summer Wedges.These lines proved to be ideal forbarbecues and parties in the summerjust gone, and they were popularduring the 2010 World Cup just goneas well.

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November 2011 25

Frozen FoodsFrozen Foods

Frozen Potato Products

Based in Clondalkin, Co. Dublin,1st Choice are a fully Irish brandoperating in the frozen foods market.They have been on Irish shelves sincelaunching in the early 1980s, duringwhich time 1st Choice have become astrong and innovative brand leader,spanning vegetables, chicken andpotato products. In addition to this, 1stChoice partners with Unislim to bringlow fat oven chips and ready meals tomarket.

They enjoy a good positioning inthe frozen potatoes market, andalthough they are probably betterknown for their offerings in the chipsand ready meals markets, they put abig effort into their potato ranges aswell.

A big reason for this is the way thatthey view innovation with suchimportance, as they are constantlycoming up with new and fresh ideas tomake sure consumer interest in theirbrand does not wane. Goodpromotions are essential for frozenpotatoes because, while it still quite aconvenient meal to make, it doesrequire a bit more care than theirproducts do in other markets.Therefore, they need to make sure thatthey come up with a Unique SellingPoint (USP) that will see more andmore consumers investing in theirfrozen potato products.

In a market where there are anumber of major players that are all

vying for a share of the market, Potatoexpert Rita Ahern deserves greatcredit for the way that she hasmanaged to maintain a relativelystrong position in the frozen potatocategory.

Her products have been availableon the Irish market for quite a fewyears, but 2002 saw Rita Ahernpotatoes becoming available in the UKfor the first time. Rita Ahern'sTraditional Irish Potato Cakes, PotatoRings and Wedges 'n' Bacon Stir Fryare billed as “a tasty and convenient”alternative to standard spuds.

Rita Ahern products are made fromfresh Irish potatoes for their textureand flavour to a family recipe that hasbeen handed down from generation togeneration. They only use 100%traceable ingredients and theirproducts are also free of preservativesand artificial colourings.

Their Potato Cakes and PotatoRings can be baked in the oven, but itcan also be grilled or shallow friedfrom frozen as well. Their Wedges 'n'Bacon Stir Fry range is advertised as ameal in itself. 2003 was also aworthwhile year for Rita Ahern, as TheVegetarian Society announced thatthey were including their products intheir 'Seedling Symbol' vegetarianapproval scheme.

Total frozen potatoes sector isworth almost €15m, and has grown by17% in volume. The largest sectorwithin frozen potatoes is Waffles,accounting for 38% of value sales.Birds Eye Waffles alone account foralmost 28% of total potato sales.

Birds Eye are the No.1 frozenwaffles brand with 75% market shareof waffles. For every 1 pack of brandedcompetitor waffles sold, Birds Eye sell8 packs.

Frozen Prepared Fish ProductsWithin the frozen section, the

frozen prepared fish market is one ofthe strongest categories, and iscurrently valued at almost€45 million,which gives the brands within themarket plenty of scope to expand,which is a scenario that a number ofthem are taking advantage of.

The category is on the rise at themoment as well, the volume sales offrozen fish having witnessed a growthof 7% according to findings thatincluded the final 12 weeks of 2009.At present, the largest sectors withinfrozen fish are coated fillets with 50%,fish fingers with 22% and naturalfillets, who themselves have a presenceof some 13%.

This category is one that is keen topromote innovation and the recentinitiative undertaken by BIM/Irish SeaFisheries Board, the State agency withresponsibility for the Irish fishing andaquaculture industry, is one that isproving to be extremely beneficial toall concerned. The Seafood Circleinitiative is being used to support andencourage restaurateurs and retailersto consistently deliver the higheststandards of seafood and service totheir customers.

In total there are three categoriesof membership for this initiative,namely hospitality, seafood specialistand supermarket seafood counter,with a total of 175 members acrossthe country in 2010. All multiple,symbol groups and independentsupermarkets that offer a range ofseafood from a wet fish counter, aspart of a much greater offering ofother foodstuffs, can apply formembership in the SupermarketSeafood Counter category.

26 TGm

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The retail element of theprogramme is assessed by personnelin BIM who have a great deal ofexperience, and they are assisted intheir venture by independentassessors. Applicants generally receiveunannounced visits during theassessment period and report theirfindings to an independent approvalscommittee. Spot checks can also becarried out as required.

This initiative is expected tocontinue into 2011, when the criteriafor membership will once again befocused quite heavily on the quality offish, customer service and, obviously,adherence to standard labelling andhygiene practices. For example, it is abasic requirement for membershipthat they carry a minimum range of12-14 species on the wet fish counter.

This is proving to be a real boost tothe ever-growing frozen fish market,and the many brands/manufacturersthat currently occupy it. Frozen fish is,in general, a very competitive marketand a lot of work is required by brandsif they want to set themselves apartfrom the pack.

Donegal Catch is one of the bigleaders in the frozen fish market, andis also currently commanding a 67%market share in the conveniencesector, which is helping it to maintainits strong position as a brand leader inthe frozen fish category.

In keeping with the alwayschanging consumer trends, the brandhas always created plenty ofexcitement in the frozen fish categorythrough the launch of innovativeproducts, which is something that theyare eager to keep going into futureyears, as they can't afford to let theirguard slip at any point.

Consumers are now becoming farmore sophisticated and adventurouswith their fish purchases, so it is nosurprise that Donegal Catch arecontinuing to look for new species andrecipes, which will help to recruit newconsumers into the category.

Although their cod and haddockproducts are key to the make-up of thebrand, their sustained success hasseen them gradually moving into lesstraditional species. One of these is the

Yellow fin Sole, which is lightly dustedwith lemon and paisley, and also thehake, lightly dusted with tomato andbasil. All the preparation that isneeded for them is to pop them in theoven for 20 minutes and it's done.

It is perfect for using as a mainmeal, or in other situations with asalad for those who are may be a littlemore health conscious. These twoproducts can also be cooked on theBBQ, which obviously makes themperfect as an addition to any BBQduring the summer.

Birds Eye are the market leader inFish Fingers, with almost 80% marketshare. “Birds Eye 10’s Cod fish fingers”,is the No.1 Fish Finger in Ireland withBirds Eye selling 6 times more packsof fish fingers than the nearestbranded competitor!**

In keeping with consumer trends,Birds Eye have always createdexcitement in the frozen fish categorythrough the launch of innovativeproducts. Birds Eye Omega 3 fishfingers brought the consumer addedhealth benefits, and more recently thelaunch of Birds Eye Salmon FishFingers has brought more ‘adult’appeal to the sector.

The latest innovation brought tothe market by Birds Eye is the “Baketo Perfection” range. This new rangeanswers 3 key consumer concernsabout fish as many consumers 1) donot like to touch fish 2) do not knowhow to prepare fish and 3) do not likesmell of fish.

Birds Eye Baked to Perfection is anew range of deliciously tasty fishfillets and seafood complimented withthe perfect sauce. Each variant comeswith two individually wrapped portionsand Birds Eye’s innovative packingtechnology “Bake Perfect bag” TMprevents the fish from drying outduring the cooking process whilepreventing unwanted aroma

Launched in October 2009, theBirds Eye Bake to Perfection rangeincludes Salmon, Pollock and Prawns.

Within 12 weeks of launch BirdsEye Bake to Perfection accounted foralmost 30% of natural fish sales.“Bake to Perfection Salmon” is now the3rd most popular natural fish product.

Birds Eye are now extending the rangewith the launch of Ireland’s mostpopular fish with Birds Eye Baked toPerfection Cod. This launch will besupported with a TV campaign andstrong in-store activity.

Young's Seafood Ltd is the UK'snumber one seafood supplier, and itnow offers a wide range in Ireland. Fishis undoubtedly an essential part of thefrozen food category, and Young's is awell-established brand within the fishcategory.

It is a popular choice forconsumers, fish is healthy, convenientand offers plenty of varieties to them.However, as consumers aren't surehow to handle or prepare fish andYoung's believe that its brand breaksdown the barrier that tends to existbetween fish and consumers, byoffering great products without anyfuss.

Some of the Young's products thatare currently available in Irelandinclude: Young's Admirals Pie (numberone selling ready meal in the UK); ChipShop 2 Fish Fillets Sea Salt & MaltVinegar (Chip Shop is the UK's fastestgrowing frozen food brand); Young'sBest Ever King Prawns; and Young'sScampi with a hint of Lemon.

The Young's brand was onlylaunched in the Republic Of Ireland inNovember 2008, and Young's say theresponse it has received from retailersand consumers have been “fantastic”,and it is now in the process ofextending this range further past2010.

November 2011 27

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Frozen FoodsFrozen Foods

Frozen PreparedMeatProducts

A number of leading brands in thevalue-added meat category have beendelivering dramatic, double-digit salesgrowth and have been attracting aloyal customer following for the lastfew years and, with the continuing risein popularity of frozen foods, this canbe expected to continue.

The frozen meat category can, attimes, be a difficult one for consumersto get their head around though. Forinstance, the term frozen beef (whichis, of course, a major member of themeat industry) can often evoke imagesof unappetizing chunks of rock-hardmeat hanging in a butcher's freezer,but it is a much more complexed termthan that.

It can also refer to irresistiblebarbeque beef brisket, boneless ribs,top-quality steaks and hamburgers,which are able to offer the quality,taste, convenience, variety and valuethat are all common factors for themost successful of frozen foods.

Indeed, the category is quite broadand diverse to the point that manycompany executives are not entirelycertain how to label it. Some say"Value-added Meat", while others plumfor "Chilled Provisions". In the past, ithas also been termed as "MealSolutions", and there are still thosewho go with this one as it describes thewide range of meat products formultiple occasions being offered toretailers and consumers.

Exports are very important in thismarket and, in total, all combinedbeef, sheep meat, pig meat, poultryand livestock exports total animpressive €2.584 billion. Ireland,with its mild temperate climate forgrowing grass, forms the basis of thethriving meat & livestock sector.

Beef exports, which saw a 7%growth rate in 2008, accounts for 2/3of all meat and livestock exports.Exports of 483,000 tonnes, mainly toBritain and continental Europe,amounted to €1.686 billion. 90% ofIreland's 1.6 million slaughterings areexported, making Ireland the largestnet exporter of meat in the northern

hemisphere. Ireland is proud of itsexport approved processing plants, asthey have 34 in total, all of which havea reputation for being modern anddynamic.

Ireland currently has 4.3 millionhectares of farmlands and, of this total,80% is grassland, which gives thecountry a distinct competitiveadvantage when raising cattle for beef.This means that their chances ofexporting meat is quite good, with2008 showing that they had exportsthat were up to the value of €166m,making Ireland the second largestexporter of lamb and sheep meat inthe EU. Irish sheep flock totals 6million head, including 3.1 millionbreeding ewes.

The pig meat business in Ireland isalso strong, and is currently valued atover €1 billion. It is a technicallyprogressive, highly efficient industrywith 4 processors accounting for 90%of all production. All of these factorshelp frozen meat to be a vibrantmarket and, as a consequence, themain brands in the market can comeinto their own.

With a current market share ofaround 35%, Big Al's is the numberone brand in the frozen convenientmeat market, and that is expected tocontinue to be the case movingforward down the line. Of course, thisis a tough time economically speaking,but sales of frozen foods are continuingto grow in the current economicclimate, so there is plenty of room forcertain brands to take advantage.

During this time, Big Al's arefocused on developing products thatmeet changing consumer expectations.While traditionally frozen meatproducts have been available in readyprepared formats such as burgers ornuggets, certain new products like BigAl's Mini Fillets, Sweet Chilli MiniFillets and Fajita Strip offer consumersthe opportunity to prepare meals forthe whole family like curries and stir-fries straight from the freezer.

It is clear that Big Al's currentlyhave a strong grasp of the frozen meatmarket, and they have a very realpresence in other parts of the Irishmarketplace as well. They are currently

providing the poultry category with amajor boost with their modern mealproducts, and they are offeringretailers the chance to reach out tothose who may not have purchasedtraditional frozen convenient meat inthe past.

The key though to the frozen meatcategory, and by extension to Big Al'sas a brand, is convenience, especiallyin terms of preparation and storage.This helps to make meals easier tocook each time, and Big Al's say thatthey are also delivering retail benefitssuch as adding 14% value to thefrozen convenient poultry category,and they seem to be succeeding inbringing new members to the frozenconvenient meat sector, which willalways be a big priority for thecompany.

Quorn is another fine addition tothe frozen meat market, and acts as anexcellent alternative to the morerecognisable brands that currentlyoccupy this category.

At the heart of all Quorn productsis a special ingredient, made from anutritious member of the fungi family,called mycoprotein. Mycoprotein is agreat source protein and fibre which isalso low in fat, low in saturates and lowin calories, which makes it ratherdesirable for health-consciousconsumers.

As well as that, it contains nocholesterol or trans fats at all. This iswhy Quorn products are alwaysgenerally lower in fat, saturates andcalories than their meat equivalents.Quorn products are not just good foryou, as they are also tasty, versatileand easy to prepare.

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Quorn have a wide range ofproducts that are suited to any level ofculinary expertise. Whether it be minceor fajita strips, or topped escalopesand picnic eggs, there is something foreveryone to enjoy. Quorn mince andQuorn pieces can also be used in ahost of popular dishes such asspaghetti bolognese, stir-fries and chillicon carne.

Quorn can also be bought as aready meal, which can used by thosewho are a little short on time. Quorncottage pie can act satisfactorily as analternate to its meaty cousin, andthere is also a rich and rewardingQuorn lasagne that can be enjoyed aswell.

There is a lot of interest in thehealth benefits that can be provided bya diet that is rich in mycoprotein, andparticular the role than it can play inlowering cholesterol and controllingsomeone's appetite. Quorn is verystrong in the United Kingdom as welland, just like here, it is seen as theleading mycoprotein brand. In terms ofIreland though, it is probably morepopular in Northern Ireland than it isin the Republic, as it currently holds amarket share of 36% in the meatmarket there.

Just like Quorn, Weight WatchersFrom Heinz offers a healthy solution inthe frozen convenient meat market,which is something that more andmore people are going for these days.It also has an advantage over Quorn inthis category, as it would be morerecognisable to consumers across thecountry. They are currently the leadingbrand in the frozen ready meal sectorwith 76.6% value share of healthy

frozen ready meals and 23.5% valueshare of the total ready meals market,which is valued at €17.2m.

Manufactured in Dundalk, WeightWatchers are also the leading brand inthe healthy eating sector, with theirrange of frozen ready meal continuesto drive the frozen ready meal categorywith convenient meal solutions thathas something all consumers, who arelooking for a healthy lifestyle, but are,at the same time, hoping to avoid acompromise on taste.

They have a number of productsthat are quite well-represented in thefrozen meat category. These includeChicken Tikka Masala, Ocean Pie andTomato & Basil

Chicken, which can offer anextensive range of popular recipes toshoppers. A number of additions totheir range in the past year or so haveadded the quality and reliability thatthey offer, and it is expected that it willadd significantly to their presence inthis category.

Frozen Prepared PoultryProducts

The past 12 months has been aninteresting one for the Retail ChilledReady Meals Market, in terms ofoverall value and volume in particular.

Estimates up to March 21st of thisyear show that the market has a valueof around €38.72 million euro, whichis a 10.2% fall in value from where itwas 12 months ago. However, thevolume of product sold rose by some4.4% over the same period, whichwould suggest that insiders shouldhave plenty of cause for optimism asthe market moves forward in the nextcouple of years.

As a whole, this market is a veryunorthodox one, as 72% of theproducts are sold under private labels.This tells that it is a market whereinnovation and creativity plays a majorpart, with every small label getting theopportunity to make their mark. It isnot a sector that is ever likely to bedominated by big-name brands,though the current stranglehold thatprivate labels have in the chilledmarket may not last forever.

Within the Chilled market, thereare plenty of sub-categories, which arewell known to consumers, and one ofthese is the Chilled Poultry sector,which is quite popular in both theRepublic Of Ireland and NorthernIreland. Sales and growth has beenquite strong in the poultry market, andeven now, they remain to be prettysolid.

November 2011 29

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Frozen FoodsFrozen Foods

Frozen Prepared PoultryProducts

However, consumers have beenconcerned in recent months about thelevel of imported poultry goods thathave come into the country, and feelthat certain sectors should besupporting local foods rather thanrelying on goods from other countriesoutside of the European Union. In astudy undertaken by Irish safe foodagency Safefood, it was revealed that54% of consumers are concernedabout the importing of food from non-EU nations.

There were also 43% of peoplewho are concerned about theimporting of food from other EUcountries. There are a number ofconcerns that have been raised in thisreport, such as poor regulationsand/or standards of food production inother countries (48% voiced concern),poor quality (28% of those polled) andfear of contamination

(24%). 60% of people wereconcerned about imported fresh meat,the food group that appears to havemore people worried than any otherone.

Unfortunately, meat/poultry is onlyslightly behind on 57%, which meansthat there are plenty of things formanufacturers to consider as they tryto improve the market in the future. Areturn to the production of indigenous

products would make for a far morereliable item that would be bought byeven more people than it is now.

Not all of the brands in the poultrymarket are taken from Ireland, andthere are a number of companiesacross the country that are leading theway by offering Irish consumers theopportunity to buy freshly-madepoultry fresh from their manufacturingplants.

Birds Eye are the No.1 brand infrozen Poultry, with over 43% marketshare. Birds Eye are the No.1 KidsPoultry Brand, with 59% share and theNo. 1 Adult Poultry brand with 46%share.

In the last 6 months, 7 of the top10 selling frozen Poultry products wereBirds Eye products. The No. 1 sellingpoultry product in the last 6 months(sales €) is Birds Eye Chicken Dippers24’s. Birds Eye have continued toinnovate throughout 2010 with thelaunch of the successful Goujons andSouthern Fried Chicken Wings range.

Birds Eye have also brought trueinnovation to the Poultry category withthe launch of the new Birds Eye Bakedto Perfection Chicken Fillets range.Extending the concept from themassively successful Fish range, newBirds Eye Poultry Baked to Perfectionis a range of succulent chicken breastfillets complemented by herb infusedbutter sauces and wrapped in real foilBake Perfect bags which locks in all theflavour. The range will come in fourtasty variants – Chicken Chasseur /Garlic & Herb / Red Wine & Mushroom/Tomato & Basil.

Based in Craigavon in NorthernIreland, Moy Park is a major poultryprocessor, and with the penchantamongst consumers in the Republic totravel up to the North to engage incheaper cross-border shopping, it has,like a lot of other manufacturers basedin the North, managed to sell wellthroughout the 32 counties of Ireland.

Cross-border shopping hasdropped off in the last year or so everso slightly, but Moy Park is widelyavailable in the Republic at present, soit certainly has a strong presence inthe market regardless. It strengthenedfurther in the past couple of the

months with their purchase of thefamily-owned O'Kane Poultry businessfor a deal worth in the region of £26million.

Running an operation fromBallymena, Co. Antrim, O'Kane Poultrywas founded in 1932 by the late W.P.O'Kane and, right from day one, itstrived to the highest standards ofproduct quality and consumer carewhilst offering the consumer value formoney. They have been a majorsupplier to both the retail and foodservice sector, supplying brand andown-label products to blue-chipcompanies throughout the UK andIreland.

While there is always a degree ofskepticism when a family-ownedenterprise is bought out by a big-namemanufacturer, judgment shouldprobably be reserved on the pros andcons of this idea until it is up-and-running, as it could turn out to be agood move for both parties. Peoplewill, of course, by concerned thatO'Kane Poultry will lose its identity asa result of this deal, but it is alsopossible that their business mayimprove as a consequence of falling inunder the Moy Park bracket.

For certain brands/manufacturers,it is not easy to gain a strong positionin the poultry market, which makes the14% value that Big Al's has added tothe poultry category all the moreimpressive. Big Al's are, in general avery well-constructed brand, and theycurrently enjoy a 35% market share infrozen convenient meat.

As sales of frozen foods continue togrows in the current economic climate,Big Al’s remain focused on developingproducts that meet consumerexpectations, which are alwayschanging as time goes by.

Big Al's modern meal productshave reinvigorated the poultrycategory, and have in the processoffered retailers a unique opportunityto reach current non-purchasers ofmore traditional frozen convenientmeat.

The key to their success in thiscategory is the convenience that theyoffer, in terms of preparation andstorage, and making meal times

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easier. As well as adding value to thepoultry category, the biggest positivethat can be attributed to Big Al's is theway that they have managed to enticethose who have not previouslypurchased any frozen convenient meatinto purchasing their products.

Frozen ReadyMealsSince the turn of the century, there

has always been a strong competitionbetween different markets in the Irisheconomy, and none more so thanbetween the frozen and chilled foodsmarkets. Indeed, in many parts ofWestern Europe, the competitionbetween these markets are extremelystrong and who the stronger of the twowill be as we look forward down theline is very much up for discussion.

Within sectors such as ready mealsand pizza, the frozen market hasexperienced something of a revival inrecent years, thanks in no small part toa greater emphasis on quality byleading manufacturers. Alongside this,price-conscious consumers are nowrecognising the value for money thatcan be provided by frozen foods as thecountry tries to battle through aneconomic crisis.

As a result, growth is nowbeginning to level off across manyparts of the chilled food industry, whichhas seen the likes of the frozen readymeals market benefiting in ways thatgo well beyond their expectations.

However, it isn't all plain sailing forthe frozen ready meals sector though,

as consumer research carried out inthe United Kingdom indicates that, fora large of selection of the population,quality and choice is still believed to bemuch higher for chilled foodscompared with frozen.

For example, research carried outfor Bord Bia, the Irish food promotionagency, by Kantar Worldpanel showsthat the combined chilled and frozenmarket for ready meals at retail levelin Ireland is worth €59.34 million.However, other estimates, byLeatherhead Food Research hasestimated that the value of the marketis approximately €63 million.

Kantar Worldpanel also estimatedthat the frozen ready meals market inIreland was worth some €20.64million in the year up to 21 March2010. This represents a fall of sevenper cent in terms of value, with volumedeclining by one per cent. This issomething of a set-back for thoseinvolved in the market, but it should bepointed out that this represents asignificantly better performance thanthat recorded by the chilled readymeal category.

During the same period, the chilledready meal category suffered a declineof around 10%, which has seen thevalue of the market dropping to €38.7million, further closing the gapbetween the two.

It was also discovered in thesefindings that both purchase frequencyand price per kilo fell by seven percent. While the fall in price per kilomay not be that big a concern, it is tobe expected in the current climate, thepurchase frequency is something thatcertainly is a worry, and the variousmanufacturers in the frozen readymeals market will have to come upwith some innovation or mechanism toaddress this issue.

Of products sold, 61% werebranded with 39% sold as a privatelabel. The proportion of frozen readymeals sold on offer fell from 22% to20.9%. Again, though this representsanother decrease for the market,frozen ready meals are still performingquite healthily, and it has actuallybenefited in a way as a result of theeconomic downturn, due mainly to the

value and convenience that it offersconsumers, who are trying to tightentheir purse-strings.

There are a number of brands thatare quite popular in this category, butthere is one in particular that has anespecially powerful position.

Heinz are unquestionably theleading brand in the frozen ready mealsector, with their Weight Watchersfrom Heinz range being one of themain reasons for this. They have avalue share of 76.6% of healthy frozenready meals, and a 23.5% value shareof the total ready meals market, whichis valued at €17.2m.

Manufactured in Dundalk, WeightWatchers is also a leading brand in thehealthy eating sector. They also offeran extensive range of popular recipessuch as Chicken Tikka Masala, OceanPie, and Tomato & Basil Chicken.

Once a quite powerful player in thefrozen ready meals market, Birds Eye'smarket share in this category declinedsignificantly around the turn of thecentury, as a result of the increasedcompetition from Heinz, and the ownbrand labels.

This is something that they havefound it hard to recover from, as Heinzcontinue to dominate the market, andeven though they still have a worth ofaround 10% in the frozen ready mealsmarket, this is still a relatively lowpercentage when you consider thereach they once had on the market.

Birds Eye operate in this categorywith the brand name Walls, whichoffers a complete meal range forconsumers. In addition to completemeals, they also have a variety of mealcentres in their fish range. Birds eyeproducts are imported from the UKand distributed in Ireland by ClaytonLove.

Nestle's existence in the frozenready meals market is represented bya brand called Findus which has, alongwith the Lean Cuisine brand, helpedthem to gain a 5% share of the marketoverall in the past few years. They alsohave a New York Takeout (Chinesemeals) under the Crosse & Blackwellbrand name. Findus products areproduced in and imported from theUK.

November 2011 31

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Frozen FoodsFrozen Foods

Frozen VegetablesAs mentioned in numerous places

elsewhere in this publication, thefrozen foods category is a particularlyimportant one for the Irish economy,with the levels of imports and exportsthat are recorded by the categoryhaving a major bearing on how theeconomy is viewed as a whole. Exportsare crucial in this day and age, andwith a number of indigenous frozenfood items currently available on theIrish market, it is clear to see just howimportant it can be as a food category.

Frozen vegetables is one of thesub-categories that falls in with thefrozen food market, and they haveproven to be quite popular at timeswith Irish customers, as they can seethe nutritious qualities that vegetables,whether they be frozen or non-frozen,can provide.

What helps to make frozenvegetables so useful for consumersthough is that, as well as beingrelatively cheap, they are quite simpleto cook and it doesn't take long for themeals to be fully prepared. Theconvenience category has provided thefrozen vegetables market with plentyof competition in recent years, butready-to-cook products have shownextremely strong growth, and they arenow really putting the pressure on theconvenience category.

Frozen vegetables, especially, hasshown some strong growth, and hasbenefited greatly from a 'new image'marketing that has managed to keepexisting customers interested, as wellas enticing some new ones. This 'newimage' is focused on locked-innutritional goodness, replacing the oldperception of frozen vegetables assecond rate versions of fresh productswhich, of course, is clearly wide of themark.

As well as being a general part of afamily meal the whole year round,frozen vegetables are also known asbeing part of a Christmas dinner, withmany people taking peas along withthe traditional turkey and ham. Formany though, Christmas dinners hadbecome very expensive, which meansthat it is no surprise to hear that the

price of a Christmas dinner in 2009had fallen by an estimated 30%.

Deflation and cut-throatcompetition between retailers hashelped to bring this about, and it isbelieved that, last year, a Christmasdinner for a party of 10 would onlycost €117, compared to €160 duringthe Christmas period of 2008.

The price of frozen vegetables,during this period particularly, fell bysome 10%, and Irish households wereable to pay €5.40 for a 3kg pack offrozen peas, as opposed to €6 the yearbefore. Fresh turkey fell by some 5%across butchers' counters as well, whilecustomers are also plumping for a 5kgbird over the 7kg range, which hadbeen popular in recent years.

While it is reasonable to suggestthat this drop in price for frozen peaswould be seen as a set-back forretailers, the fact is that thisdevelopment has been welcomed byconsumers, so it was certainly a smartmove be manufacturers to reduce theirprices, especially around the Christmasperiod.

A number of brands in the frozenvegetables market have proven to bequite popular, and have managed toseparate themselves from similarmanufacturers/brands.

The total frozen vegetables marketis worth approx. €26m. With 27 %share of total sales value, Peas is oneof the largest sectors of FrozenVegetables, along with Single VarietyVeg (also 27%). Mixed Veg is the nextlargest sector, accounting for 18% ofsales value.

Birds Eye are the No.1 brand infrozen peas, with 57% share of totalPeas sales value Birds Eye frozen Peasare worth over €5m a year!**. Thetop 3 selling frozen vegetable skus areall Birds Eye Peas!

Birds Eye, producers of thefreshest, tastiest frozen peas, isrelaunched its vegetable range underthe new Field Fresh range - a deliciousand healthy collection of frozenvegetables guaranteed to make anymeal mouth-watering.

Birds Eye’s Field Fresh range, willincorporate frozen favourites GardenPeas, Petits Pois, Steam Bags and SoyaBeans also offer a wide variety of tastyvegetables bursting with flavour andessential vitamins. Frozen within hoursof picking to retain their freshness, allvegetables within the new Field Freshrange are packed full of nutrients rightup until the moment you eat them.

Vitamins are locked in at the pointof freezing to ensure there is nodeterioration in quality or nutritionalvalue. Only Birds Eye has the FieldFresh guarantee - they pick and frozetheir Field Fresh vegetables on thesame day and their experts are onhand to ensure that only the very bestvegetables are selected.

Fresh vegetables can lose much oftheir essential nutrients between thetime they are harvested and the timethey are consumed and research hasshown that Birds Eye Frozen GreenBeans retains up to 45% morevitamins than Fresh Green Beans.Birds Eye Field Fresh vegetables alsohelps to prevent wasting money by

November 2011 33

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saving consumers from having to throwout fresh vegetables whichdeteriorated or “gone off” as Birds EyeField Fresh vegetables retains itsfreshness and are convenient to usestraight from the freezer. Birds Eye,Ireland’s No.1 Frozen Food brand

with 18% value share is supportingthe new Birds Eye Field Freshvegetable range with a massivemarketing campaign including TV,radio, press, outdoor and in-storeactivation.

Green Giant has the uniqueposition of being both a member of thecanned vegetable market and thefrozen vegetable market. Though theymay well be best known for theircanned vegetable range (for instance,they are the market leader in thesweetcorn market), their frozenvegetables selection is still quitepopular and instantly recognisable.

They are owned by the GeneralMills corporation in Minnesota, whichhas a current annual revenue of $14.7billion dollars. As well as Green Giant,they also house brands like Old ElPaso, Cheerios, Yoplait, Cheerios andLucky Charms, so it is quite clear thatthey are a force to be reckoned with.

However, the Green Giant productis also sold under the Le Sueur brand,though the latter is not particularlywell-known to Irish consumers or,indeed, consumers in Great Britain forthat matter. Green Giant has benefiteddown through the years from somesmart marketing, with a succession oftelevision advertisements (showcasinga giant green puppet) proving to be

very useful in promoting the nameGreen Giant to nationwide shoppers.

One of their most recentadvertisements came in 2005, whenThe Jolly Green Giant (as he hasbecome known) starred in a 2005Mastercard commercial entitled 'Icons'along with nine other mascots fromother companies (including PillsburyDoughboy and Count Chocula, who arealso the ambassadors for General Millsproducts) having dinner.

Though their sales have had theirups and downs in the past few years,they have nevertheless remained quitesteady, and they are expected tomaintain a strong share in the frozenvegetables for a while longer at thevery least.

Long seen as a family favourite inIreland, the Green Isle brand is leadingthe way in growing the frozen foodcategory. Viewed by Irish consumersas delivering trusted “good food”values, and developing consistentlygood quality products, the Green Islebrand has got the range and variety tocover all side-of-plate needs. Green Islehave recently introduced a new lookacross the range and this is proving tobe a success with consumers andretailers alike.

Green Isle has enjoyed the positionas Ireland's top brand in the frozenvegetable category for quite a fewyears now, and their success has beenlargely driven by their range of 14vegetable variants, which have becomewidely available in a 'Buy any two for€2.50' range.

The brand, like a lot of those

available in this market, haveperformed well in the past few years,even though the economic climate hassuffered a number of setbacks. Thelast three years has seen the brandgrow by 30% in value, while lastChristmas saw them offering up to50% extra free on a number of theirproducts.

They have introduced a successionof new products such as a stir-fry rangeand mushy peas, which thus far haveproven to be a huge draw forconsumers. Green Isle works alongsidethe best suppliers, and ensuresvegetables are frozen within two hoursof harvesting. No other processing isapplied and all products are free fromartificial flavours, colourings orpreservatives.

Overall, about 30% Green IsleFoods production is sold in Ireland,with the remaining 70% of the producebeing exported.

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N E W S

Largo shows profit

New jobs for Bord naMonaIrish crisp maker Largo

Foods increased itsprofitability last yeardespite a €4 million declinein turnover.

Latest accounts forLargo Food Exports Ltdshow that the companyincreased its pretax profitto €2.56 million in 2010from €1.96 million in theprevious year.

Turnover declined to€84.1 million from €88.2million in the period.

The company had anoperating profit of €10.1million in 2010 comparedwith €9.9 million in theprevious year.

Its bottom lineperformance was boostedby a combined €4 millionreduction in the cost ofsales and net operatingexpenses, and a €1 milliondecline in its exceptionalcosts.

Largo chief executiveand majority shareholderRay Coyle said thereduction in turnover wasthe result of its decision tocease producing own-label

crisps for the UK market.“There was no money in

it,” he said. “So we lostabout €8 million or €9million in sales, but weincreased our brandedsales in Ireland by to 8 percent.”

Coyle said Largo’sturnover this year wouldincrease to about €95million. “Our exports are upby 35 to 40 per cent,primarily driven by VelvetCrunch in the UK. Sales inIreland are up about 4 to 5per cent.”

Largo closed 2010 withaccumulated losses of€12.4 million, down from€13.8 million in theprevious year.

Earlier this year,thecompany restructured itsborrowings. Loans of about€66 million with Bank ofScotland and Rabobankwere replaced by ashareholder loan withGerman companyIntersnack, which increasedits stake in the business to40 per cent as part of thetransaction. This new loanis at a significantly lowerinterest rate for theAshbourne-based firm ndwill yield a “savings of €3million a year” in interestcosts, said Coyle.

“We now have thechance to grow thebusiness by 10 to 12 ercent in Ireland,” he added.

Largo’s interest costsamounted to €6.6 millionin 2010, down above€300,00 from the previousyear.

The company sellsabout 4. million packets ofTayto in Ireland every week.other brands include HunkyDory and King.

New jobs were recentlyannounced at Bord NaMóna headquarters atNewbridge, Co Kildare.

Bord na Mona is tocreate 91 jobs as part of a€6 million investment overthe next three years,including a grant of€860,000 from EnterpriseIreland. Bord na Mona chiefexecutive Gabriel D’Arcysaid, “Innovation is aboutchanging the wholeorganisation around itsstrengths and capabilitiesand focusing those on hemarkets and thecustomers.”

The result was to enableBod na Mona “to be morecometitive and indeed,more enduring”, he added.

The announcement ispart of Bord na Mona’sinnovation programme thathas already seenrecruitment commence for20 high-tech positions,which are expected to befilled by March 2012. The92 jobs announced are inaddition to these 20

positions.Enterprise Ireland is

supporting the work of theinnovation division of Bordna Mona in a number ofhigh-technology growthareas such as cleantechnology and carbonreduction.

Bord na Mona alsoannounced a new strategyto collaborate with andmentor start-ups and smalland medium enterprises inthe midlands.

The 20 jobs currentlybeing recruited are skilledand graduate positions inbusiness, science and IT.The additional 92 jobs willbe in R&D, engineering,science and business andwill comprise graduate andskilled positions.

the total value of thisR&D programme is €6million, which represents a50 per cent increase inBord na Mona’s R&D spendover the previous threeyears and an intensificationof its transformation effort.

Raymond Coyle

Once again top of itsclass, Tipperary NaturalMineral Water has scooped3 international gold medalsat the British BottlersInstitute (BBI) Awards inLondon. This brings thetotal since 1989 to animpressive 10 Gold Medals.

This highly prestigious

BBI Competition for Waters& Soft Drinks has beenrunning since 1965. Thepanel consisted of Sevenjudges all based in the UKand in the ‘Natural MineralWater Blind Tasting Class’they awarded TipperaryWater the following:

GOLD MEDAL - CLASS A– Tipperary NaturalMineral Water – Still

•GOLD MEDAL - CLASS B –Tipperary Natural MineralWater – Sparkling

•GOLD MEDAL – CLASS E–Tipperary Flavoured Water– Peach

•The award ceremony

which had the largestturnout ever took place onThursday last at a GalaDinner in Vintners Hall inLondon when the THREE

Gold Medals werepresented to Peter Cooney,Manager, Tipperary WaterCooler Division.

Commenting on theAward Marie Cooney,Director said

“We are proud in our25th Anniversary year toaccept three more GoldMedals and we willcontinue to be active inproducing a quality naturalproduct at our source inBorrisoleigh, Co.Tipperary.”

Tipperary Water, afamily run business, is partof the Gleeson Group ofcompanies.

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November 2011 35

Multimillion seizureCustoms officers backed

up by gardai have made amultimillionn euro seizureof cigarettes following anintelligence-led search of apremises in Co Monaghan.

The smuggled haul ofnine million President-brand cigarettes has anestimated retail value of€3.8 million.

The officers swooped ona large shed used as awarehouse at Clontibret,about five miles fromMonaghan town and a

short distance from theBorder at South Armagh.

An official said thecigarettes were smuggledinto the country in a 40foot container labelled“Sports socks” at DublinPort. The container arrivedat the port on a ship fromMalaysia via Rotterdambefore being moved to CoMonaghan.

The swoop is believed tohave followed a tip-off andsubsequent surveillanceoperation in the Monaghan

area.Revenue

authoritiesestimated theseizurerepresented apotential lossof €3.2 millionto the Irishexchequer, andthey have said the seizure ispart of a strategy tocombat a huge wave oftobacco smuggling.

The latest seizure bringsto over 100 million the

number of cigarettes seizedby Customs so far this year.Collectively these haulsrepresent a potential loss ofup to €45 million to theexchequer.

A Taste for Gold

36 TGm

According to the exporters, theprincipal drivers behind this increasedoptimism include: securing newcustomers (86%); new productofferings (71%); new markets –geographical or channel (66%);improved competitiveness (59%) andbetter price prospects (31%).

In terms of challenges, 81% citeddifficulty in passing on increases ininput costs, compared to 70% in2010. However, difficulty in securingprice increases showed a slightdecrease from 75% to 69%.

Some 71% listed the focus byconsumers on value for money,compared to 65% in 2010 as aconcern and competition betweenretailers fell from 59% to 52%.

The strength of the sector is furtherendorsed by the impressiveemployment records – some 42% ofrespondents stated that they hadincreased full-time staff numbers overthe last year with a further 46%maintaining numbers in full timeemployment.

Meat & Livestock

The combined value of meat andlivestock exports grew by an estimated11% to €2.8 billion in 2011. Increasedexport revenues were recorded forbeef, pigmeat, sheepmeat and poultry,which offset reduced exports oflivestock. The value of beef exports isestimated have jumped by 15% orover €200m during 2011 as lowervolumes were offset by a strongincrease in cattle prices.

A rise of 9% in export meat plantpig supplies combined with a rise of9% in average pig prices helped toboost the value of Irish pigmeatexports by18% or almost €60m.

Stronger poultry volumescombined with a modest increase in

prices resulted in the value of Irish by3% to reach an estimated €210m.

A stabilisation in export availabilityand ongoing strong prices for lambsled to the value of Irish sheepmeatexports rising by 10% to reach€180m.

Lower live cattle and sheep exportsmore than offset strong pig shipmentsand despite stronger prices prevailing,the value of livestock exports isestimated to have declined by 16% to€205m.

The prospects for the meat &livestock sector in 2012 remainbroadly positive with a tight supplysituation both in Ireland and acrossEurope expected to help maintainstrong returns for beef exports. Feedprice developments will play a criticalrole in both the pigmeat and poultrysectors while after more than a decadeof decline some recovery is anticipatedin the volume of sheepmeatexports.poultry exports rising.

Export Performance by Sector

Sector 2010 2011(e) %change

Meat & Live Animals 2,520 2,795 +11%Dairy & Ingredients 2,273 2,665 +17%Prepared Foods 1,375 1,540 +12%Beverages 1,152 1,220 +6%Seafood 371 420 +13%Horticulture& Cereals 193 210 +9%

Increased Optimismhe results of the annual Bord Bia industry survey, completed in late December 2011, showed increasedoptimism among food and drink manufacturers across all categories. In total, 85% of exporters viewed theprospects for their business in 2012 as good or very good. This compares to 70% in 2010. Almost two thirdsof respondents rated their business prospects as much improved/improved compared to a year earlier. In termsof sales prospects, 69% of respondents, compared to 64% in 2010, stated that they had increased their salesforecasts for the year ahead.

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I N C R E A S E D O P T I M I S M

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Dairy Products & Ingredients

Overall, it is estimated that thevalue of dairy exports increased by17% to exceed €2.66 billion, helpedby stronger prices reflecting strongglobal dairy demand for much of theyear and higher milk production inIreland.

For most products, Europeanprices increased by 10% to 15%during 2011 with the strongestincreases evident in powders andbutter. Global prices showed similartrends. The Fonterra auction price forWMP increased by 7% in 2011, whichfollowed a rise of 40% in 2010.

Milk output in Ireland increasedstrongly throughout 2011 as acombination of good grass growth andhigh prices boosted output. For the 10months to October, deliveries wererunning 6.5% higher.

However, deliveries slowed downconsiderably over the autumn monthsand for the year a rise of 5% in output

is anticipated.All export destinations showed

strong growth, led by other Europeanmarkets, which increased by almost athird to €880 million. This leaves theregion accounting for a third of thetotal. Exports to International marketsalso performed well, helped by strongshipments to China, South East Asia,the Middle East, Africa and the UnitedStates.

The prospects for 2012 remaingenerally positive with global demandlikely to be sustained at levels wellabove historical averages. If globalstocks begin to build, it will put somedownward pressure on prices,although overall market fundamentalsremain sound in many regions. Thegreatest uncertainty exists withinEurope given recent economicdevelopments.

Following a strong increase inoutput during 2011, the early monthsof 2012 are likely to see reduced Irishmilk output.

Theprospects for2012 remain

generally positivewith global

demand likely tobe sustained atlevels well above

historicalaverages.

“(l-r): Alan Cotter and Michael Carey

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38 TGm

Prepared Foods

The market environment forPrepared Food manufacturersremained competitive throughout2011 However, the strong cost focuswithin the sector and an everincreasing focus on productdevelopment and expanding the rangeof customers and markets servedhelped the sector deliver acommendable export performance.

Overall, export values of productscovered under the prepared foodscategory increased by an estimated12% to €1.54 billion. Exports ofconsumer ready products recorded arise of 7%. The strongest performingcategories during the year were valueadded dairy, meat based products andchocolate confectionery. These helpedto partly offset a difficult environmentfor other categories.

The improved efficiencies evidentamong Irish manufacturers leavesthem in a better position to competein key markets. However, ongoing highcommodity prices, promotional andcurrency pressures allied witheconomic uncertainty andaccompanying austerity measures,seem set to create a challengingmarketing environment for preparedfood manufacturers in 2012. However,the strong drive by manufacturers toadapt existing products and developnew ones to meet changed consumershopping requirements anddiversification to a broader range ofmarkets should help export values.

Beverages

The global market for Irishbeverages improved during 2011,despite ongoing economic uncertainty,pressure on price levels and intensecompetition across most majorcategories. A strong focus on newproduct development and increasedvolumes to emerging markets helpedto boost trade.

Overall, exports are estimated tohave increased by 6% in 2011 to reachalmost €1.22 billion. The growth inthe value of exports was led bywhiskey, which continued to showstrong double digit growth while creamliqueurs, beer and cider showed moremodest growth. Exports of non-alcoholic beverages increased in 2011,with water and coffee performingparticularly strongly.

The prospects for Irish beverageexports in 2012 remain largelypositive for 2012 with further goodgrowth anticipated in whiskey exportswhile cream liqueurs, beer and ciderare also expected to grow as new

markets emerge to replace lower salesto some traditional destinations. Muchwill depend on economicdevelopments, particularly in the eurozone, which will have a strong influenceon consumer spending. Despite thecurrent economic situation, consumersin many parts of the world seem to bestill willing to purchase premiumspirits. The sector faces challenges inthe form of ongoing high raw materialprices, pending legal changes relatingto excise on wine based creams andchanges to trade classifications forIrish creams.

Seafood

The value of Irish seafood exportsshowed strong growth in value during2011 despite volumes falling by a fifth.All categories of seafood put in strongexport performances as reduced lowervolumes of many species were offset byhigher prices and a greater spread ofexport markets by the sector. Overallfor the year, the value of seafoodexports is estimated to have increasedby 13% to an estimated €420 million.

I N C R E A S E D O P T I M I S M

40 TGm

The herbs and spices market is onethat tends to rely on good imports andexports quite a bit in their quest togain prominence in the overall Irishmarket. Given the current economicsituation that Ireland presently findsitself in, the need for imports,especially, is higher than ever.

Unfortunately, the import of herbsand spices are relatively small and aredecreasing in value and volume as theyears go by. This means thatopportunities are limited fordeveloping country suppliers, which issomething of a worry for a lot ofcountries across the globe, Irelandincluded.

The herbs and spices market iscertainly a good distance off being oneof the biggest markets in the Irisheconomy, but they do, nevertheless,garner an extremely niche position inthe marketplace, and they do provide avery suitable alternative for Irishconsumers.

Herbs, such as Irish Moss(Chondud crispus) and Arrowroot(Maranta arundinacea) are usedextensively in a number of commonfoods that can be easily found ongrocery shelves. Irish Moss is normallysubjected to a rendering-purifying-bleaching process to producecarrageenan that is used as a bulkingand thickening agent in dairy products,beverages and also sauces. Arrowroot,which has a high starch content,expansive quality when added to waterand sticky binding nature, is usedfrequently in bakery products, usuallyas a gluten-free ingredient for gluten-free dietary needs.

It is plain to see then that there areplenty of uses for herbs, as well asspices and, with so many Irishconsumers looking for supplements togo with their main meals, there iscertainly plenty of room for this marketto maintain its current position, as wellas expanding it in future.

Currently, there are a few brands inthis market that are making waves,and are showing the other members ofthe category the way forward.

Established since 1933, Goodallshas gone on to become one of Ireland'smost recognisable herbs and spices

brands, and look like they are set tomaintain this strong position as weenter into the 2010's. They arerenowned for their high quality herbsand spices, as well as their colouringsand flavourings.

Goodalls offers an extensive rangeof herbs, spices, salts and peppers tocater for even the most adventurous ofconsumers, which gives us some sortof indication as to how they havegained the popularity that theycurrently hold.

For the record, their most popularvarieties are also the most poplarherb, spices and peppers in general.They are: 8 Herbs; 12 Spices and 3Peppers.

They are a wide and farencompassing brand, as they alsoinclude products in the categories ofLiquid Seasonings, Olive Oils and, ofcourse, Colourings and Flavourings.Though they have a wide variety ofproducts available in their portfolio,Goodalls are still well aware thatconsumer boredom may kick in after awhile if you keep offering them thesame products year after year.

For this reason, Goodalls arealways looking for new varieties thatwill keep consumers happy, and willkeep the Goodalls products coming offthe shelves in the months and yearsthat follow. Therefore, Irish customersshould expect a lot more innovationsand promotions from Goodalls as timegoes by.

The Goodalls range is owned anddistributed by the Premier GroceryProducts Ireland Ltd Company, whohave their offices in Dublin 15. PremierFoods are one of the majormanufacturers/distributors in Ireland,and they house a number of topbrands such as Ambrosia, Sharwoodsand Mr. Kipling, so Goodalls arecertainly in good hands.

Schwartz is another herbs andspices brand that has a strongpresence on the Irish market, and it isone that has a very strong outputacross the world as well. The brandwas first established back in 1889 byWilliam Schwartz, who was the son of aGerman immigrant, in Halifax,Canada. William E. Schwartz, the son

HerbsHerbs

of the founder, was the very firstperson in Canada to sell pure spices.

From these early beginnings, therewas always a great emphasis placed onquality, and William Schwartz workedhard to convince people that it wasbetter to buy pure, top qualityproducts in small quantities that poorquality in bulk. From England heimported the first bicycle withpneumatic tyres and travelledthroughout Nova Scotia selling hisspices.

The past 25 years has been aninteresting period for Schwartz, as theywere bought out by McCormick andCompany, Incorporated, who are theworld's largest producer of herbs,spices, seasonings and flavourings.However, following rationalisationwithin the United Kingdom, theMcCormick branding was phased outand replaced by Schwartz.

Most of their herb range isavailable throughout Ireland, withflavours like Basil, Chives, Bay Leaves,Bouquet Garni, Coriander Leaf, Dilland Mint being regular fixtures onIrish shelves and, subsequently in Irishhouseholds as well.

The Living Flavour brand is fastbecoming one of the most favouredones in this market, and it comes froma family that is in the third generationof its family. George Long first set-upOakland Nurseries in the 1920s, amarket garden business based inRathgar, South Dublin, which grewvegetables, herbs, bedding plants andcut flowers and supplied them to theDublin wholesale market, as well as tolocal shops and residents living in andaround Rathgar.

Then in 1979, his son Joe andJoe's wife Edna took over from theretiring George, before their sons,Mark and Joe Junior, joined up in1990.

Launched at Easter 2009, LivingFlavour and its business has been re-organised around the Living Flavourherb range. A key benefit from this re-organisation has been the ability of thecompany to anticipate and plan forherb production well in advance ofdelivery dates. This hadn't been thecase with the previous flowering-plant-

based business.In the short time since Living

Flavour was launched, sales volumehas already increased by 50% and themanagement are now confident thatthe sales have the potential to increasefour-fold, and are forecasting aturnover of some €2-2.5m for 2011.This would represent a massiveachievement for the brand, and eventhough it remains to be seen if they willactually gain this turnover, theycertainly appear to be on course at themoment.

In addition this, and this next factoris significant, the new brand iscommanding a much higher profitmargin right across its fresh herbproduct range. The rationale for thisbrand project was that the companycould add more customer value forshoppers and user experience bycreating a brand that was bothrecognisable and distinctive. In sodoing, the company sought to de-commodotise this strongly growingand high-margin sector of thevegetable-food retailing area.

Though these things always havethe potential of going south, LivingFlavour certainly appears to befulfilling the above criteria thus far, andthey are showing that it is possible inthe current climate to introduce/re-introduce a new product onto themarket.

TGM

November 2011 41

42 TGm

The Horticulture Industry is animportant sector in the Agri FoodIndustry in terms of output, trade andlocal employment. The annual value ofthe farmgate output of Horticulture is€370ml. This is made up of ediblehorticulture crops valued at €320mland amenity horticulture crops (egplants & flowers) valued at €50ml.

The key fresh produce cropcategories include: Potatoes, FieldVegetables, Glasshouse (Protected)Food Crops, Mushrooms and Outdoorfruit crops.

The potato continues to beIreland’s most important crop in termsof area grown and volume produced.This year it is estimated that over11,000 ha of potatoes were grown. Ithas been a good growing year withincreased yields and good qualityreported. A combination of good yieldsat home this year and a poor potatoharvest in a number of Europeancountries particularly in EasternEurope and Russia has opened up theopportunity for potato exports fromIreland into these markets.

The Field vegetable productionarea is 4,600Ha with farmgate outputvalued at €70ml. The production areahas remained relatively stable overrecent years but there are less growersinvolved indicating a trend ofconsolidation within the sector. Thekey crops produced include Carrots,Cabbage, Broccoli, Cauliflower,Parsnips and Swedes. Glasshouse (andprotected crop production) has afarmgate value of €50ml from 382haof production. Strawberries, Lettuceand Tomatoes are the key cropsproduced in this sector. The outdoorfruit sector is dominated by Appleproduction which has an output valuedat €6ml.

The Mushroom Sector has afarmgate value of €100ml with 80% oftotal production going to the UKmarket. Despite the challenge ofcurrency fluctuations the sector hascontinued to perform well and the IrishIndustry has firmly established itself asa key supplier on the UK market.

With the exception of mushroomswho have a significant export marketthe domestic fresh produce market is

the most important market for the fruitand vegetable sector. The retail marketis the key market outlet for freshproduce. According to Kantar marketresearch the retail market for the totalfresh produce category was valued at€1.16bn to the year ending October2010. While both value and volumemeasures are back modestly on 2009figures, data for the last quarter(ending in October 2010) has showboth value and volume figures movingback into positive growth whencompared with the same quarter in2009 which maybe an indication thatgrowth is coming back into the freshproduce category. The other notablemarket for produce is the food servicemarket. The Food Service Sector hashad a challenging time with less peopleeating out now than in recent yearsand the subsequent affect this has onthe demand for produce.

The fresh produce sector has anumber of challenges to manage.These include improving and managingcompetitiveness particularly in thecontext of potential suppliers fromother lower cost base countries. Themarketplace is now very competitivewith ongoing promotional activityexerting downward pressure onmarket returns. In addition buying

power has consolidated to a smallnumber of key buyers. The economicdownturn creates its own challengeswith the impact it has on demand forproducts. Currency fluctuations in thecontext of Sterling can impact onmushroom exports and the potentialimport of produce into Ireland.

Fresh Produce has a key benefit inthat it is widely recognised as a criticalelement in a healthy balanced diet. Itis widely recommended that eachperson should be consuming at least 5portions of fruit and vegetables perday. Recent Bord Bia researchindicated that only 45% of adultsclaimed to be eating the correct 5portions per day. This would indicatethat there is an opportunity to increasethe consumption and sales of freshproduce in Ireland. Consumerpromotion and school campaigns tohighlight the key health benefits ofconsuming fresh produce willcontribute to this effort.

While the Irish Fresh ProduceIndustry has a significant market sharefor key produce lines in seasonopportunities still exist to increasemarket share for certain lines. Thehighlighting of the availability of localsupplies of fresh produce with goodenvironmental credentials is viewedpositively by consumers.Opportunities will exist in nichemarkets such as local sales to farmersmarkets and supplying the organicmarket. Bringing innovative and newproducts to the market particularlywhere they provide convenience atgood value points will also offeropportunities.

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44 TGm

Gala is an Irish-owned, premium, convenience Group, established in 1998and employing over 3,000 people across both its retail and wholesale

operations. The Gala Group has 284 stores in Ireland, of which 202 areGala franchise stores. Through the company’s association with the

Stonehouse buying group, it has access to buying power in excess of €2billion.

Support for RetailersCentral to the Gala business model

are its retailers. In 2011, Gala RetailServices’ number one priority was tosupport its retailers country-wide. Galahas been assisting its stores withexpertise on generating cost savings,developing new structures in-store,overall financial planning, storeassessments and strong value-focusedpromotions, developed to increasefootfall.

In 2012 Gala intends to continueits ‘hands on’ support for retailers,

helping stores to ensure that they’re ina robust position for future growth,alongside the Gala Group.

Value for Money PropositionAfter a period of consolidation and

focusing on supporting its dynamicgroup of retailers, Gala hopes toincrease the number of Gala stores inIreland in 2012.

Support for RetailersGala has a value-for-money retailer

proposition, which is perfectly suited to

the current climate. A dual supportmodel for retailers offers a uniqueservice to stores. Gala wholesalers canrespond quickly to changes in themarketplace, whilst Gala RetailServices focuses on building the Galabrand, developing new concepts forstores that add real value, and buildingstructures to ensure best standards inretailing.

Gary Desmond, CEO of Gala RetailServices, explains: “Gala’s businessmodel is well placed to attract newretailers in today’s climate.

‘Dual Support’ for Gala Retailers

D U A L S U P P O R T F O R G A L A R E T A I L E R S

“Highly competitive members’ fees,combined with the dual support,enables retailers to benefit from lowercosts and the ability to react quickly toconsumer demand.”

“The Gala model has beenextremely well received over the pastfew years, with 24 new retailers joiningthe Gala Group in 2011.

”Yes, we’ve lost a few retailers alongthe way, however we now have a robustgroup of dynamic retailers who are allcommitted to excellence in retailing.We have ambitious plans for the nextfew years.”

Building the Gala brandFrom a marketing point of view,

Gala’s focus in 2011 was on drivingawareness of Gala, through itssponsorship of Nationwide on RTE andthe Irish Language Media Awards, andbuilding an online community viafacebook. Gala also continued itsprogressive rebranding programmefollowing the introduction of the freshand modern new-look identity for Galastores. Gala plans to have thiscompleted by 2013. In addition,rebranding is now more affordable,enabling all stores to avail from themany benefits that rebrandingdelivers.

Reasons to Rebrand to Galain 2012

Gala is a young, vibrantconvenience Retail Group that pridesitself on its professional and qualitygroup of retailers. It’s imperative thatwhen the shoppers visit Gala, whetherit be in Cahersiveen or Clones, thatthey enjoy a cohesive GALA shoppingexperience.

With the strength of the Groupbehind them, each store is encouragedto take a personalised approach, whichis tailored to what its customersrequire. Gala retailers see this benefitin their bottom line and it’s one of theGala USPs that enables retailers tomaintain a sense of independence.

Support and training of new storesis key to Gala's success and its phasedapproach ensures consistency acrossthe Group.

Phase One is to educate new

retailers on setting up their store. Galaadvises new shop owners on theirlocation, size, exterior planning anddesign, interior design, layout andequipment, sourced fromrecommended suppliers.

Once these logistics have beenfinalised, Gala Retail Services’personnel offer support with theimplementation of features such ascontract management, categorymanagement, fresh food departmentset-up, merchandising, staff trainingand store openings.

Phase Two focuses on the ongoingsupport and services provided by theGala team, such as business planning,financials, turnover advice, customerservice support and promotionalactivity. Technology support is alsooffered online with the G.R.O.W.website for Gala retailers.

Gala is looking for progressive andforward-thinking retailers, who striveto deliver exceptional standards.Excellent customer service, combinedwith solid business acumen couldmake you a ‘Gala’ retailer that cangrow with the Gala Group.

November 2011 45

TGM

The Galamodel has beenextremely well

received over thepast few yearswith 24 new

retailers joiningthe Gala Group in2011....We haveambitious plansfor the next few

years.”

“

Contact Gala Retail Services on 045 910 066, @ <http://www.gala.ie> www.gala.ie or via facebook.com/galaretail

Head Office: 12 Dundrum Business ParkDublin 14

Tel; 01 296 6000Fax: 01 296 6002Web: www.gala.ie

Group Name; GALA RETAIL SERVICESPrivate Label: Gala own label

MANAGEMENT:Chairman: Liam PetersChief Executive: Gary DesmondNational Sales Manager: Peter FlanaganNational Dev. Manager: Michael O’Shaughnessy

46 TGm

Head Office: BWG Foods LtdPO Box 1470Greenhills RoadWalkinstownDublin 12

Tel: 01 409 0300Fax: 01 450 3660Web: www.bwg.ie

Group Name; BBWWGG FFOOOODDSS LLTTDDPrivate Label: Spar, Mace, Family Value,

Chefs KitchenCash & Carry: Value Centre, XL, Xpress StopDelivered Business: Spar, Spar Express, Eurospar, MaceWines & Spirits: BWG Wines & Spirits

MANAGEMENTMD Spar: Peter KealyMD Mace: Willie O’ByrneMD Wholesale: John MoaneMarketing & CommsDirector: Suzanne WeldonHead of Fresh Trading: Daniel O’ConnellHead of Ambient: Jean WatsonSpar Marketing Manager: Caitriona HayesEurospar Market Manager: Caitriona CousinsMarketing ManagerWholesale: Margaret McLaughlin

Head Office: Upper QuartertownMallowCo Cork

Tel; 022 30100Fax: 022 30171Web: www.barrygroup.ie

Group Name; BARRY GROUPPrivate Label: Homestead, Costcutter Own brand

MANAGEMENT:Managing Director: Jim BarryCommercial Director John McAllenHead of Sales & Marketing: Norman LenihanBuying Manager: Denis Cronin

48 TGm

November 2011 49

TGM

Winners All The Way

With 265 stores under its belt, the Barry Group seeplenty of room for expansion, and the company remainson the lookout for acquisition opportunities within the

wholesale sector. This potentiol is mirrored by thecompany’s proposals for its central distribution centre in

Mallow. The current facility is 150,000 sq ft and the BarryGroup is sitting on planning permission for an extension of

55,000 sq ft. However, for the present the Group isfocused on getting the best out of its retailers, one store

at a time.

50 TGm

At the Group’s recent Costcutterconference Jim Barry, managingdirector of the Barry Group laid out thechallenges for the coming year.

“Inaction is not an option in thisclimate,” he said. “Our Costcutterretailers know that to survive andsucceed they need to adapt theirbusinesses, embrace new innovations,and respond to customer needs andtrends.”

“Smart thinking is key to survival inthis business,” he added. “As retailers,we must continue to push theboundaries and raise the standards forquality and customer care across ourbusiness. We must identify new ways toincrease turnover and margins byintroducing new product lines, be opento new ideas, and, above all, focus ondelivering an unrivalled customerexperience”

Innovation has long been part ofthe Barry Group. 1996 saw the Mark and Tara Malone, Costcutter Bray Co Wicklow Winner Express Store of the Year

Inaction isnot an option inthis climate...

Costcutterretailers knowthat to survive

and succeed theyneed to adapt

their businesses,embrace new

innovations, andrespond to

customer needsand trends.”

“

Jim Barry

W I N N E R S A L L T H E W A Y

opening of Quik Pick, the group’s firstfranchise. Today the Group has 135Costcutter outlets; the off-licence chainCarry Out and BuyLo, Ireland’s firstdomestic discounter.

New initiative such as energy-saving concepts to reduce theoverheads for operators; new changesto store specification and the roll-outof a new initiative that allows retailersto order solid fuel as part of theirambient delivery, are being put

forward by the Barry Group are new in-store concepts that have been jointlydeveloped between the group’s storedesign department and suppliers.

Offering fuel during the wintermonths is a new direction for the BarryGroup.

“A lot of businesses dabble in fuelsales, but we feel we can bring aprofessional approach to the category,creating a dedicated point-of-saleoffering, reasonable pricing and

promotions for the customer,” saidBarry. “We also believe fuel sales willbring more people in store, and wemay see additional benefits inincremental sales.”

Fresh produce is another area inwhich the Barry Group has performedahead of the market, with the grouphaving invested in ensuring that it candeliver quality produce at the rightprice.

Barry believes that in these toughtimes people tend to get consumed bynegativity. “But in reality, people needto stand back and look at theopportunities that are out there. That’swhat I want to instil in everybody thatworks for us - a ‘come out fighting’attitude and a ‘can do’ attitude. It allstarts with getting people motivated.”

One of the Group’s core strengthsis the close relationship it maintainswith its franchisees, under theCostcutter, BuyLo, Quik Pick and Carryout banners.

Most of all the focus has been onstaff empowerment, ensuring that allstaff in the group are dedicated to thesame goal. It’s a work ethic that hasbeen in lace since James A. Barry,Jim’s father, first established thecompany in 1955, and it is arguablyeven more relevant today.

“I’m a firm believer that you cannotachieve what you want unless yourstaff are fully motivated and aligned toyour way of thinking,” says Barry.Tomas Moore, Costcutter Hospital Co Limerick Winner Off-Licence of the year

Mr & Mrs Peter Gaughan, Costcutter Balla Co Mayo Winner Foodmarket Wine Department of the Year

TGM

November 2011 51

52 TGm

Aaron Massey, Costcutter Rathfarnham, Dublin 14 Winner Foodmarket Store of the Year

Tom Liddy, Costcutter Roslevan, Co Clare Winner Supermarket of the Year and Best Fresh Produce Display

W I N N E R S A L L T H E W A Y

TGM

November 2011 53

HHeeaadd OOffffiiccee:: GGrroouupp SSuuppppoorrtt OOffffiiccee,, JJoohhnnssttoowwnnNNaaaassCCoo KKiillddaarree

TTeell;; 004455 883377 996600FFaaxx:: 004455 887766 335533WWeebb:: wwwwww..lloonnddiiss..iiee

GGrroouupp NNaammee;; AADDMM LLOONNDDIISS PPLLCCPPrriivvaattee LLaabbeell:: LLoonnddiiss oowwnn llaabbeell

MANAGEMENT:Chairman: Leo McAuleyChief Executive: Stephen

O’RiordanGroup Marketing Manager: Ruth Norton

54 TGm

MANAGEMENT REPUBLIC OF IRELAND:

Managing Director: Donal HorganSuperValu Sales Director: Ciaran LevisCentra Sales Director: Michael MorganMarketing Director: Ray Kelly

MANAGEMENT NORTHERN IRELAND:

Divisional Managing Director NI: Nigel BriggsBusiness Development Director: David McLaughlinSales Director SuperValu & Centra: Nigel MaxwellSales Director Mace: Graeme Kerr

Head Office (ROI): Musgrave GroupMusgrave House, BallycurreenAirport Road, Cork

Tel; 021 480 3000Fax: 021 431 3621

Northern Ireland: Belfast Harbour Estate 1-19 Dargan DriveBelfast BT3 9JG

Tel; 048 07 8710Fax: 048 907 8701

Group Name: MMUUSSGGRRAAVVEE RREETTAAIILL PPAARRTTNNEERRSSGroup Private Labels: Centra/Supervalu own label

November 2011 55

Head Office: Mace c/o BWG Foods LtdPO Box 1470Greenhills RoadWalkinstownDublin 12

Tel: 01 409 0300Fax: 01 450 3660

Group Name; BBWWGG FFOOOODDSS LLTTDD

MANAGEMENT:

Managing Director: Willie O’ByrneSales Director: Alex BanahanBusiness Develop Manager: Seamus RobinsonMarketing & CommunicationsDirector: Suzanne WeldonFresh Food ServicesManager: Elaine Clohosey

56 TGm

Head Office: PO Box 1470, Greenhills RoadWalkinstown, Dublin 12

Tel; 01 4090300Fax: 01 4503660

Group Name; BBWWGG FFOOOODDSS LLTTDDGroup Private Labels Spar, MaceCash & Carry: Value Centre, XL Stop & ShopDelivered Business: Spar, EuroSpar, Mace, NearbuyWines & Spirits: BWG Wines & Spirits

MANAGEMENT:Managing Director Spar: Peter KealyManaging Director Mace: Willie O’ByrneManaging Director Wholesale Division: John MoaneOperations Director: Graham WaltersMarketing/Communications Director Suzanne WeldonSales/Retailer Advisory Serv. Director: Malachy HanberryRetail Development Director: Declan Ralph

Mace Sales Director: Alex BanahanTrading Director: Simon MarriottHead of Fresh Trading: Daniel O’ConnellHead of Ambient Trading: Jean WatsonTrading Managers: Edel Flood

Orla JonesAidan LambeDeirdre LeeBarry McDonnellJoe Wogan

Senior Trading/ Promotional Manager: Michael NoonanCategory Management: Jane RyanHead of HR: Peter DonohueHead of IT: Veronica SullivanRetail Technology Manager: Fergal KinnaneSpar National Sales Manager: Colin DonnellyEuroSpar National Sales Manager Nigel ScullyValue Centre Commercial Manager: Stephen McNulty

November 2011 57

The Chewing Gum market hasshown itself to be a good area forinnovation in recent times, withmanufacturers exploring differentpossibilities in relation to both flavourand experience. Product developmentin the past couple of years has led tothe inclusion of exotic flavours andcombinations, as well as a number ofdifferent textures such as gels, whichare sometimes all used within the oneproduct. There has also been recentinnovation concerning thedevelopment of products with adental care purpose, and this hasproven to be particularly popular.

Koncept Analytics published areport on the global chewing gummarket, viewing it as 'a high growthconfectionery segment'. It found thatone of the major factors driving thegrowth of the chewing gum industryhas been the higher consumption ofsugar-free gums. Indeed, the segmenthas grown some 4% above the overallgrowth of chewing gum marketsglobally over the past couple of years.

The well-being category isregarded as being another chewinggum category, and is currentlyrecording an approximate annualgrowth of around 15%. This sub-category is based upon functionalitems offering health and wellnessbenefits, and will go some waytowards appeasing those who havequestioned how much benefit can bederived from consuming chewinggum.

The chewing gum industry hasbeen recognised for quite some timeas being a duopoly market, withWrigley's and Cadburys controllingmore than 60% of the market share.Of these two, Wrigley's is undoubtedlythe market leader globally, butTrident, the chewing gum brandcontrolled by Cadburys, is alsoperforming admirably in the UKmarket.

However, in spite of thisdominance, there has been a growthin the mints market sector of thechewing gum industry, driven by theuse of sugar-free and soft and chewyvariants. A number of new productshave made their presence felt in thisarea including Trebor Extra CoolMints, Mentos Soft and Chewy, as well

an Extra Ice Sugar Free Mint whichhas been developed by Wrigley.

It is quite clear that chewing gumis very popular amongst Irishconsumers, and there are certainreasons why this is so. One possiblereason is in relation to where chewinggum products are placed inconvenient stores. Chewing gum tendsto be stored, alongside confectioneryand snacks, beside the checkouts.Given that shoppers will end upspending at least half of their time inthe queue when they go shopping,they will at some point come acrossthe area where chewing gum is beingsold, and may be tempted to buy it.

The global gum market is in ahealthy state at the moment, and it isexpected that, by 2012, it will have avalue of €13.5bn, which wouldrepresent a 17% increase from morerecent positions. There are a numberof brands and manufacturers thathelp to make this gum market sopopular around the world.

As mentioned already, Wrigley hasa major share of the of the chewinggum industry in Ireland, with Wrigley'sExtra being their best-known brand.It is currently the largest sugarconfectionery brand in the RepublicOf Ireland, and is currently worth over€26.6 million. It also has a 67%value share of the gum category.

The mints category in Ireland iscurrently worth €16.1 million, andWrigley's have helped to refresh thiscategory with their Extra Ice Mints ina tin range. Since it was launched,Extra Ice Mints has helped to drivebrand growth within the mintscategory in Ireland. For instance, fromthe period of June 2008-February2009, the value share in Extra IceMints has grown from 7.3% to 8%.

They are currently available in apremium packaging format, a sleekand extremely stylish tin. The twomain flavours for the product arePeppermint and Spearmint, which areaimed at delivering excitement to thepremium segment of the mintscategory. The price of New Extra IceMints are set at €1.35 and contain33 sugar free mints. Research hasshown that younger consumers, whodo not traditionally buy mints, likethis product.

Wrigley's currently has a 35%share of the worldwide gum sector.Though Wrigley's is the mostrecognisable chewing gum brand inIreland, there are still of plenty ofother chewing gum brands that arewell-established with certain Irishconsumers. Airwaves is one of thesebrands, and has been regarded as thesecond best-selling chewing gumbrand in Ireland.

With a new and improved longer-lasting flavour and a vibrant newpackaging, the brand is now currentlyworth an estimated €7m. This hashelped to make it work so well, but italso has benefited some strongmarketing innovations.

Cadbury also have a strongposition in the chewing gum market,with their Trident brand growing inpopularity in the UK, while also beinga familiar name in Ireland as well. Forinstance, as recently as 2007, Tridenthad a 12.5% share of the market inthe UK.

Cadbury has a 24% revenue sharein Britain & Ireland, which means thatall their products, including DairyMilk, Flake Crunchie, Bassetts,Maynards and, of course, Tridentshave a good strong presence on themarket in the Republic Of Ireland,Northern Ireland, England, Scotlandand Wales. Cadburys have anestimated worldwide gum marketshare of 27%.

Chewing GumChewing Gum

58 TGm

Granola BarsGranola Bars

When someone mentions the term'Granola Bars', it might seem peculiarto some people, as they might think ofit as an obscure or niche market thatthey would not readily recognise. Infact, this is a more than reasonableassertion to make as this term is notactually used that often, even by someof the key manufacturers in thecategory.

Kellogg's are one of themanufacturers of granola bars whooften refrain from referring to it assuch, and instead prefer to use theterm “cereal bar” and “snack bar”when talking about their products. Itis also important in defining granolabars that people are aware of asimilar bar known as a flapjack ormuesli bar, which has existedprimarily in Germany and the UnitedKingdom but is now available in manyothers countries including Ireland, asthis will help people to develop agreater understanding of the kind ofproduct that people are dealing with.

“Granola Bars” were invented byStanley Mason, a lecturer ofinnovative thinking at the UniversityOf Connecticut School Of Education,who also came up with suchinventions as the squeezable ketchupbottle, microwave cookware and self-heating shaving cream.

Since then, they have becomepopular as a snack, and are usuallyidentical to the normal form ofgranola in composition, but they tendto differ vastly in shape. Instead of aloose, breakfast cereal consistency,

granola bars are pressed and bakedinto a bar shape, which results in theproduction of a more convenientsnack, making it ideal for consumerswho are on-the-go or looking for aquick filler to get them through theday.

The countries that granola barstend to be most popular in are theUnited States and Canada, as well asparts of Southern Europe, Brazil,South Africa and Japan. However,Granola has also recently began toexpand its market into India andother southeast Asian countries aswell, so it is clear that this category isone that is becoming a worldwide oneat this stage.

There is also a particular variety ofthe granola bar available on themarket as well, and this is describedas a “chewy granola bar”. In this form,the time during which the oats arebaked is either shortened or cut outaltogether. This means that the barhas a texture that is chewier than thatof a traditional granola bar.

2009 was an interesting year forthe granola bar category as, for thevery first time, the Research andMarkets website announced that theywould be introducing a report for themarket entitled the “Breakfast CerealsMarket Report 2009”.

This, and a number of otherfindings, found that the breakfastcereals market will continue toprosper in the long term, given thefact that it has a healthy image andthe products within the market tend

to be rather convenient. Health andconvenience have been the two majortrends that influenced the food anddrinks markets since the late 1970s,and it is expected to remain this wayup until 2019.

The makers of granola bars/cerealbars have been criticised in the pastfor the amount of sugar and saltcontent that were included in theirproducts, but they have addressedthis by reducing the sugar and saltlevels in their products, and thusreinforcing the positive image of themarket with fortified and premiumproducts.

It isn't all good news for thecategory though, as market growthhas been slow in value terms duringthe past couple of years with theeconomic downturn continuing tocause problems for people. Becauseof this consumers are likely to moveaway from premium and organicproducts onto cheaper alternatives.

Nevertheless, there is still plentyof room for brands to grow in thismarket, and some of them are doingjust this.

There can be no denying thatKellogg's is one of the top brandswhen it comes to the granola barcategory, as they have a number ofproducts in their portfolio, which areavailable to consumers nationwide, aswell as worldwide. They tend to sellpretty well too which is not surprisingas many of them are linked to verypopular breakfast cereals, which arebought by many consumers in

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November 2011 61

Granola BarsGranola Bars

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Ireland and are considered to be partof Irish people's daily routine.Examples of this are Kellogg's CornFlake Crumbs,

¯Kellogg's Rice Krispies TreatsOriginal Bars, Kellogg's Special K Bars(in various flavours) and Kellogg's PopTarts.

Not all of Kellogg's Granola Barrange is currently available in Ireland,which makes sense given both the sizeof this country and also the fact thatthe market for it wouldn't be able tosustain all of their products.Nevertheless, they still maintain avery strong position in the marketwith what they have available.

Their Special K selection isparticularly strong, with the likes ofSpecial K Strawberry Bars providing arich flavour in a 90 calorie snack bar.It provides a rewarding cereal taste,and its lightly sweetened icing makeswhat is quite a simple bar a delight todigest.

Kellogg's Nutri-Grain is also verywell-regarded, and comes in a numberof different flavours to help suit thedifferent tastes that many consumerspossess. Included amongst these areApple Cinnamon, Blueberry, Cherry,Mixed Berry and Strawberry, so thereis something for everyone to enjoy.Indeed, Nutri-Grain are the overallmarket leaders in the cereal barmarket, with a total market share of38%, so they do plenty of goodbusiness for the company, who runtheir Irish operation out of a base inBarrow Street, Dublin.

Nature Valley have a majorpresence in this category, and theyhave played a major part in the make-up of the granola bars category asthey are the brand that first createdthe category in 1975. They have beenmajor pioneers of the category sincethen and they continue to do so withthe introduction of their new ChewyGranola bars in 2002, which providesan excellent combination of tastenutrition with a naturally flavouredyogurt coating.

It combines the goodness of wholegrains with the health benefits ofcalcium, and are perfectly suited toconsumers who are looking fornatural, real food energy to fuel their

active days, and they are available intwo flavours, Strawberry Yogurt andVanilla Yogurt.

Nature Valley produced plenty ofpromotions for the introduction oftheir Chewy Granola Bars worldwide,with quite a bit of it being visible to anIrish audience, who are at this stagequite familiar with the brand ofNature Valley, which is positionedstrategically beside the main cerealbrands in most supermarket andgrocery stores across the country.

Among the promotions that theyhad at the time were print advertisingcampaigns that support the productlaunch and appeared in a number ofmagazines from December 2002 toJanuary 2003. They also providedover seven million samples at varioushealth clubs and PGA Tour, USTA andRunning USA events which, althoughthey took place in America, would bevery familiar to Irish people so itwould have been able to translateacross the Atlantic quite easily.

The makers of Nature Valley areGeneral Mills, and they are theleading global manufacturer andmarketer of consumer foods products,with annual worldwide sales of $13.5billion. They have a global brandportfolio that includes Betty Crocker,Green Giant, Haagen-Dazs and Old ElPaso, all of which are readily availableon the Irish market and are equally asimportant to the business as NatureValley is.

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ConfectioneryConfectionery

Swizzels Matlow is the UK’s largestfamily-owned independent sugarconfectionery business and one of thefew confectionery companies to stillmanufacture sweets in the UK.Swizzels Matlow have beenmanufacturing family favourites since1928 producing over 200 differentproducts in 7 different children’scategories; Variety Bags, Chew Bars,Lollipops, Compressed Sweets,Sherbet, Stickpacks and RainbowDrops.

We see ourselves as a “One StopShop” for Children’s confectioneryproducts, with vast experience in whatis an ever changing and demandingmarket.

Swizzels Matlow (Ireland) havebeen operating from Tallaght in Dublinfor over 35 years, and haveestablished a significant presencewithin the wholesale and Cash and

Carry business nationwide, while alsoachieving a strong distributionpresence within multiples and symbolretail for our grocery and count lineconfectionery brands using third partyagencies.

Swizzels Matlow produces a wideand varied range of grocery bags whichincludes our popular sharing bags;Bumper Bag, Lots of Lollies, ChewCrew, Mini Me and Spooky Tub. Ourgrocery bags have increased by +14%in value with the increasing trend ofsnacking with friends or on the go.

We produce a wide range of chewbars which includes our famous NewRefresher Bar Original and Strawberry,Drumstick Bar, and Stinger Bar toname a few. Our Chew Bars arepopular with all ages and perfect forincluding in children’s party bags. Alsoincluded in the range are threestickpack chewy sweets consisting ofNew Refresher Original andStrawberry and Drumsticks. Theseproducts make ideal lunch box fillers.

Lollipops are an importantcategory for Swizzels Matlow where weproduce a vast array; including“Lickable Double Lollies”, “LickableDrumstick Lollies” and “Lickable FruityPops”, these are now available in a40% Free bag format providingconsumers with variety and value formoney. These are perfect for sharingand keeping the whole family happy.

Swizzels Matlow has beenproducing Love Hearts since 1954,with the brand continuing to grow over

this period, with YOY value growth of+13%. This iconic and nostalgicproduct continues to engage with kidsof all ages with love heart messagesincluding: Love, Cuddle Me, Be Mine,and Kiss Me etc..

Over the years Swizzels Matlowhave extended the product range toinclude 15c Love heart Lipstick, 35cLove heart Dip, as well as thefavourites 35c Giant Love Heart Rolland 25c standard Love Heart Roll.

Our Sherbet products comprise of25c Double Dip, 35c Love Heart Dipand 20c Rainbow Dust and arepopular during the spring months anda Spooky Dip was launched forHalloween extending the productusage and consumer journey.

Rainbow Drops are one of SwizzelsMatlow earliest product withproduction starting in the 1930’s thisremains a much loved and uniqueproduct in the marketplace.

BULK RANGEMost of our product range is also

available in Bulk 3kg bags; this rangehas been extensively re-launched in2011, to include the followingproducts: Mini Love Heart Rolls,Drumstick lollies, Fruity Pop, VarietyMix, and well and a range of boiledproducts, Crystal Mints, Fruits, Barleysugar, Butterscotch.

This range is ideally suited to “Pickn Mix” as well as Old World Sweetshops which are reappearing, asconsumers look to relive theirchildhood memories.

ConfectioneryConfectionery

TGM

GUMSSwizzzels Matlow produces a wide

range of Jelly Gums under the brandname “Fun Gums”

This range is available in thefollowing format: Acetate tubs 2c, 5c,as well as barcoded bags from 20c to35c

This range includes the followingwell known product: Pigs Mugs, JellyBabies, Fun Mix, Fizzy Cola,Strawberry Tarts, Fried Eggs, MilkBottles, Teeth and Brush, Mushrooms,Juice Lips.

HalloweenHalloween is becoming a very

important season for sugarconfectionery as the trend for Trick orTreating and Halloween parties grow.

Swizzels Matlow had a strongHalloween in 2011 with sales up+16.7%, products that performedexceptionally well were our SpookyTrick or Treat Tub along with our core

lines such as Bumper Bag with salesup +28%, Lots of Lollies +33% andChew Crew +24%.

Swizzels Matlow, Halloween kingproduced a range of ghoulish delights.The range included special treat bagsand tubs of their perennial favouritesincluding Love Hearts, Drumsticks,New Refreshers and Fruity Pops. Thenew big bags for hungry trick ortreaters or families to share at parties,included the Trick or Treat Lolly Mix,Monster Treats and Spooky Trick orTreat Mix.

Sweet shop favourite MegaDrumsticks, got a Halloween makeoverwith a new black and orange wrapper,while the Double Dip became SpookyDip with a new blackcurrant flavourthat leaves tongues black!

Scooby-Doo!Last year Swizzels Matlow secured

the manufacturing licence from WarnerBrothers to produce a collection ofScooby-Doo! treats. The selectionincludes a Chew Bar Apple & Cherry,Gruesome Gum Bag and FiendishFizzies Roll embossed on the frontand the back with well-known catchyScooby Doo phrases includingJeppers! The fizzy, chewy collectionoffers grown-ups and kids alikefearsome fun all year round.

ChristmasSwizzels Matlow launched

Christmas gift tubes placing some oftheir most iconic brands into 120gChristmas tubes. The range consistsof Mini Love Hearts, New Refreshersand Drumstick Lollies. The products

festive snowflake and ribbonpackaging has been designed toattract seasonal shoppers and converttraditional chocolate eaters. TheChristmas range is perfect for stockingfillers.

Interesting Facts•The company has been trading inthe confectionery sector for over 80years•The company offers retro sweetsand a range of Love Hearts gifts onwww.lovehearts.com •2.75 billion Love Hearts areproduced every year, that’s enoughto stretch 1.5 times around theworld.•5000 tonnes of chewproducts were made last year, that’sthe same weight as 1,100elephants•Enough Rainbow Drops weremade last year to fill 25 Olympicsized swimming pools•Swizzels Matlow produced enoughJelly Bags last year to fill theManchester United stadium 238times over. •The number of Fizzy Wine Gumsmade last year by Swizzels Matlowweighed the equivalent of fourLondon Double Decker Buses.

(All figures quoted in here are fromNielsen on a MAT ending 29.10.2011)

November 2011 63

64 TGm

Mr Perks Comes to Town!Communers in Dublin’s

busiest rail and bus stationsgot a great little perk intheir day when they werehanded a free bag ofgoodies as they left thestations by a team of youngpeople in top hats led by anoversized Top Hat character.

Inside the bags were afree bottle of LucozadeSport Raspberry,Silvermints (yes, Steve’sback!), Irish Pride breadslices, Low Low CheeseSpread, Kellogg’s RiceKrispies Square TotallyChocolatey Orange (limitededition), Kellogg’s Special KDouble Milk Chocolate baras well as discount couponsfor travel with Irish Rail andBus Eireann.

Commuters were bothsurprised and delighted tobe at the receiving end ofsuch a bounty just for doingwhat they do every day –passing through the station.They were mostly awarethat Mr. Perks would becoming to town through theextensive advertisingcampaign on outdoor andespecially transit media.But when they saw whatthey had for them there wasgenuine delight.

Mr. Perks is thebrainchild of Bravo OutdoorAdvertising, Ireland’slargest supplier of OutdoorAdvertising through bus,rail, roadside and retailadvertising panels. It’s anunusual departure for acompany in their space, butas Michelle Murray of Mr.Perks says ‘It’s just a matterof us trying to maximise thepotential from the CIEcontract that we hold.Previously this fantasticaudience – 57% ABC1 andover 100,000 journeys aday – wasn’t reallyaccessible in a planned way.

One station would let youhost activity whereasanother wouldn’t and thecost varied wildly. Whatwe’ve done is to make thisplannable and easilyaccessible for brands sothey can include it withconfidence in their brandplans.’

Commuters on thelaunch day wereencouraged to give theirfeedback through an onlinesurvey. Apart fromconfirming they wanted Mr.Perks to come back, theyrated the products in thebag according to a fivepoint scale and identifiedother items they’d love tosee in the bag.

‘The key differentiatorwith this approach is thatwe’ve moved sampling frombeing ‘a bit of an irritant’ tosomething that is genuinelysought out and valued by

commuters. This meansthat participating brandsare benefiting from afeelgood factor that is notnormally present. Apartfrom the shared cost thatmakes it more affordable,this is the key benefit of theMr. Perks approach.

‘The benefits ofsampling as amarketing activityare well-established.Our findings tell usthat as much as 81%of consumers saidthey would try aproduct afterreceiving a sample. Ithas obvious benefitsfor a new product,but it also serves asa reminder to lapsedusers of just howgood your product isand repositions yourproduct on theiragenda.

‘Times are certainlytough out there but wethink Mr. Perks will besuccessful because he’sdelivering on the zeitgeist -but doing it in a way that isfun, not depressing! Sowe’re actually lookingforward to 2012, as weirdas that sounds!

N E W S

When was the last time you ate anIrish-produced chicken? Or do youknow?

Chicken is the popular meat inIreland, and on average each of useats about 30kg of it in a year. Butwhile we tuck into our lunchtimechicken-pesto wrap, we’re usuallyunaware that the meat inside is mostlikely to have come from Thailand orEastern Europe.

Our love of a bargain has pushedimports of chicken sky high, withabout 200 million imported filletsentering the Republic of Irelandyearly (this includes chicken fromNorthern Ireland). And while theamount of chicken we eat is rising,the price is falling, making it hard forIrish farmers to stay in business.

Under current food-labelling laws,it’s also impossible to know wheremuch of our chicken is coming from.Irish farmers say this raises questionsabout the quality of what we’reeating.

In recent months, high levels ofimports coupled with the rising costof animal feed have increasedpressure on Irish chicken farmers,who get as little as 58 cent for eachchicken they farm.

Cavan farmer Alo Mohan feelsthat while the supermarkets slashprices on chicken to bring consumersin the door, it’s leaving farmershanging on a knife edge. “Theproblem is that the price of animalfeed has risen and many chickenfarmers are now working at a loss,”he says. The Irish Farmers’Association estimates that poultryfarmers get less than 10 per cent ofthe retail value of a whole chicken,the processor gets 35-40 per centand the retailer typically comes awaywith more than 50 per cent of theretail price.

It’s this slim margin for farmersthat is having an effect on theimmediate future of Irish poultry andthe 2,500 jobs in the sector here. “Ihave farmers I’ve helped arrangecredit for as they are under severepressure, and when they hear thefigures that supermarkets are taking

out of this country, it sticks in theback of their throat. They are milkingus out of it,” says Mohan.

David Owens from Bord Bia says:“There is pressure definitely at themoment; chicken is the mostdiscounted of all meats.Supermarkets use it as a promotionaltool and a loss leader to sell other

goods. Unlike other meats, chickenhas risen in volume of sales but at thesame time, it’s falling in price.”

In the past 10 years, three chickenprocessors in the Republic haveclosed, and for the farmers that raisebirds for the remaining five plants, it’sa difficult time.

Two years ago, Cappoquin Poultry

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End for the Road for Irish Chicken

E N D O F T H E R O A D F O R I R I S H C H I C K E N

in Waterford survived closure afternew investors stepped in.

Ned Morrissey produces broilerchickens for the Cappoquin plant,which has now cut its output ofchicken by a quarter. “When animalfeed prices rocketed a few weeksback, the processors went to thesupermarkets for a price increase butthey wouldn’t help us out. Nowpeople at the plant are working parttime in order to keep their jobs.There’s 160 jobs at the factory aloneand it’s critical for west Waterfordthat this business survives.”

At the Cappoquin plant, financialcontroller Tom Vaughan admits it’s atough time for processors andfarmers alike. “Animal feed went upfrom €270 a tonne last year to €370a tonne now, while the supermarketsare selling chicken cheaper andcheaper. If the consumers wereprepared to pay an extra euro onwhole chickens, it would sort it allout.”

Some, such as Superquinn and theSupervalu group, source almost alltheir chicken from the Republic of

Ireland. In the case of Tesco, almost70 per cent of its chicken is fromNorthern Irish plants owned by thegiant Brazilian meatpacker Marfrig,which recently bought the Moy Parkand O’Kane poultry brands.

“We met with Tesco to try and getthem to sell more chicken from [theRepublic] – if they bought all theirchicken from the Republic it wouldmean 1,000 or more jobs but theysaid they don’t distinguish betweenthe Republic and the North,” says AloMohan.

According to Tesco: “All of ourfresh poultry is sourced from twosuppliers on the island of Ireland,supporting over 5,000 jobs.”

However consumers may at leasttake comfort from the fact that MoyPark chicken from Tesco is qualityassured by Bord Bia.

For shoppers, Bord Bia QualityAssured Chicken is easily identifiedon packaging, with either a NorthernIreland or Republic of Ireland sticker.

However, the situation can beunclear with loose chicken fillets soldby independent butchers or otherretailers. These fillets are oftenimported but give no information tothe consumer on where they arefrom.

According to the Food SafetyAuthority of Ireland (FSAI), failure tolabel this chicken leaves consumersunaware about some of its qualitiesas imported poultry is often flushedwith carbon dioxide, which artificiallyextends the shelf life of the meat.

In December last year, the FSAIissued the results of a survey into thequality of raw chicken sold loose inbutchers: 8 per cent did not provide asell-by date and at least 23 per centof butchers provided a use-by datethat was unrealistically long for theproduct to remain unspoiled in theconsumer’s fridge.

John Hickey from the Associationof Craft Butchers of Ireland says hisorganisation cannot vouch for thesafety of chicken on supermarketbutcher counters or in independentretailers. “We are frequently auditedby the Department of Agriculture to

show the sources of our product.There should be tracability for theconsumer and we have systems inplace for our members but not all ofthem are at this point.”

The other big threat to the futureof Irish chicken is in restaurantkitchens. David Owens of Bord Biapoints out that “over 90 per cent ofchicken used in restaurants, sandwichbars, work canteens and the like isimported”.

Once this chicken arrives in theEU and goes through any kind ofprocessing, it is labelled on thepackaging as “EU product”, thoughmuch of it is from outside the EU.

Chicken sold loose in restaurantsor sandwich bars is rarely labelled.When it appears on a food counter orrestaurant menu, consumers areoften unaware of where it has comefrom – by comparison, the country oforigin for beef has to be listed by law.

Dr Alan Reilly of the FSAI knowsthe situation only too well. “If youwalk by a sandwich bar early in themorning you’ll see the boxes arrivingin from Thailand – they have Thaiprocessing plant stamps on them.”

There may be nothing wrong withThai chicken, but the distance it hasto travel can cause problems,according to Reilly. “First of all, [Irishchicken is] going to be fresher. Thelonger the food chain, the morethings that can go wrong; if you havea commodity travelling throughseveral countries and value beingadded in each country, by the time itgets to the consumer the risk isincreased.”

November 2011 67

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Supermarketsuse it as a

promotional tooland a loss leader

to sell othergoods.

..Unlike othermeats, chicken

has risen involume of salesbut at the same

time, it’s falling inprice.”

“

You don’t have to travel as faraway as Asia to encounter problemsin the food chain. Recent Dutchresearch shows that some antibiotic-resistant “superbugs” found inhumans may be obtained directly orindirectly from chicken meat. Dutchmeat has been found to have moreantibiotic residue than anywhere elsein Europe, prompting Roel Coutinho,director of the Dutch NationalInstitute of Public Health andEnvironment, to warn “the use ofantibiotics in the poultry sector mustbe strongly reduced”.

A recent league table of antibioticuse in livestock saw the Netherlandstopping the list of Europeancountries, according to the Journal ofAntimicrobial Chemotherapy.

Farmer Alo Mohan says that therequirement for Irish farmers tooperate to stringent food-safetystandards is frustrating, when someimports may not meet the samestandards.

“In Ireland there are highstandards for stocking levels in sheds,animal welfare and slaughter of birds.We only give antibiotics if a postmortem on an animal points to aninfection in the flock. But the food-service sector here buys foreignchicken, and we don’t know whatgoes on outside Ireland.”

With consumeres wanting abargain and businesses underpressure, why should restaurantowners pay more for Irish chickenover cheap imports? Jo Macken, theman behind Dublin’s Jo’Burgerrestaurant and pop-up chickenventure Crack Bird, says that sourcing

foreign chicken is a false economy.“It’s two-pronged for us; we want tosupport Irish food and we also wantquality. I don’t know what’s in someforeign chicken so I’d rather get itfrom Cootehill in Cavan and supportIrish jobs. It’s part of the way we runour business.”

Vincent Carton, who owns theManor Farm brand, employs 700people and has 150 farmer suppliers.He feels that consumers wouldn’t eatimported chicken if they knew whereit was from. “Twenty years ago Irelandsupplied 100 per cent of the chickenwe ate. If we didn’t import so muchchicken we could grow the sector toget back to that point where we alleat Irish product.”

For consumers under financialpressure, the temptation to buy thecheapest chicken on offer isunderstandable, and for farmer NedMorrissey it may already be too late.

“I can’t see a future for anygrowers or processors here, as thesupermarkets are pushing down theprice and we’re competing with reallycheap imports in food service. Ifconsumers changed to buying onlyIrish chicken, we’ll still have a futurefarming it. But if not, I can’t see itcontinuing as it is in Ireland.

N E W S

Carving up the cost of a chicken With farmers’ costs rising and the price of chicken in the

supermarket falling, the Irish Farmers’ Association estimates theretail value of a whole chicken is broken down as follows:

<10% goes to the farmer 35-40% goes to the processor

>50% goes to the retailer

What to look for when buying meat

With so many different sources ofmeat, what should the consumerlook for when buying chicken?

Bord Bia Quality AssuredChicken labels on packaging meansthe meat complies with their foodsafety, traceability, welfare andproduction requirements at everystage from the farm to theconsumer.

Most chicken sold is Ireland isconventionally farmed – as opposedto free-range or organic chicken,which must comply with stricterstandards on animal welfare andsourcing of chicken feed. This meatis labelled “organic” or “free-range”and is generally more expensive.

Chef Richard Corrigan haspublically derided Ireland’s non-free-range chicken. The Irish poultryindustry’s response was that,compared to antibiotic use in otherEU countries and imported chickensfrom outside Europe, their product –even when it’s from an “intensive”system – is of high quality.

So are imports safe? Second tothe UK, most chicken imported toIreland is from the Netherlands,which is still the biggest user ofantibiotics in livestock in Europe.

Recent research there found linksbetween antibiotic resistance inhumans, especially relating tourinary tract infections, with the highlevels of antibiotics in Dutch farming.

An EU audit recently found “verylow levels of controls” on non-EUmeat products entering Europe andfound no clear understanding ofcorrect food-safety responses topossible alerts in relation toimported meat. Productionstandards outside Europe may notmatch those within the EU, but evenwithin European countries, practicesdiffer.

68 TGm