In this months issue

February 2011

Interesting times lie ahead for the drink industry, and not justin the next few years, but even further down the line, and intothe next decade where a number of factors may come into playthat will have a major effect overall make-up of the industry.

Irish food and drinks strong export performance in 2010 wassupported by a more stable consumer environment.

As economic commentators claim to see an end to the recessionon the horizon, discounters face a tough challenge to retaintheir new customer base, as pre-recessionary trends towardspremium positioned products begin to creep back into the Irishshopping basket. Can rock-bottom pricing tactics maintainbrand loyalty?

2 NEWS

8 A TOUGH CHALLENGE TO DISCOUNTERS

20 THE EIGHT FORCES OF CHANGE

24 NEWS

28 IRISH FOOD AND DRINK SALES APPROACH €8BN

32 FOCUS CEREALS

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

Sarah GriffinContributors: Emma Maguire

Daire WalshCirculation: Margaret CorryDesign: 90% Proof

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

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

36 FOCUS SAUCES

42 FOCUS READY MEALS

44 FOCUS CHEESE

40 FOCUS PIZZAS

26 DRINKS NEWS

46 FOCUS HONEY

48 FOCUS: JAM

50 FOCUS: BAKERY

52 FOCUS: CANNED FOODS - BEANS

54 FOCUS: CANNED FOOD - FISH

56 FOCUS: CANNED FOOD - FRUIT

58 FOCUS: CANNED FOOD - VEGETABLES

60 FOCUS: COOKING OILS

62 NEWS

2 TGm

N E W S

To celebrate the launchof the new RosemountFacebook page, the stylishAustralian wine brand hascreated a Facebook App,which lets you tell yourclosest friends you’rethinking of them and alsogives you the chance to winsome great prizes to enjoytogether. The DiamondFriends competition is openfrom now until June 30th2011 with some amazingprizes up for grabsincluding a VIP trip for you

and three friends to MonteCarlo, staying at thestunning Fairmont Hoteland enjoying a helicopterride over the city. All youhave to do is become a fanof the Rosemount Facebookpagehttp://www.facebook.com/RosemountUKandIreland andnominate a Diamond Friendto be in with a chance towin.

The initiative aims tocelebrate Diamond Friends,who are those treasured

friends who are alwaysthere for you in times ofneed. Friends who you loveto catch up with over aglass of wine or two. Alongwith the trip to MonteCarlow, the DiamondFriends competition has arange of other great prizesup for grabs, including amonthly prize of anovernight stay at either oneof the UK DeVere hotels orthe five-star Merrion HotelDublin for the ultimate girls’weekend. Bring one of yourfriends for an overnightbreak at one of the hotelsand unwind in luxurioussurroundings.

There are also weeklyprizes up for grabs, whichinclude fabulous day spapasses, delicious afternoonteas or a year’s subscriptionto Glamour magazine – allfor you and your DiamondFriend. Plus when younominate your DiamondFriends, Rosemount willalso give you 30 days offree movies from screenclick

– another reason to getnominating now.

Since the mid 1970s,Rosemount has establisheditself as one of Australia’sleading wineries, producinga selection of wines thatreflect the riches of theAustralian climatecombined with a firmdedication to winemakingexcellence, innovation andstyle. Critical acclaim in1982, 1986 and 2000 atthe International Wine andSpirit Competition inLondon and being namedWinery of the Year in 1999at the San FranciscoInternational WineCompetition bearstestimony to Rosemount’slong held tradition ofmaking fresh, bright andvibrant wines of consistentquality.

In 2007 a revitalisedRosemount was re-launchedin Ireland restabilisingRosemount as the stylishwine choice amongst Irishconsumers.

Rosemount launch Facebook App.

Glanbia has stepped upits focus on the lucrativesports nutritional businesswith the acquisition of USnutritional companyBioengineered Supplementsand nutrition (BSN) for€108 million.

The acquisition of theprivately held Florida-basedcompany, which had been inthe pipeline for about ayear, will leave Glanbia incontrol of one of the largestproducers of sportsnutrition products in theUS, and follows the Irishcompany’s acquisition ofOptimum Nutrition in2008.

Glanbia’s globalnutritional business willrepresent about 22-23 percent of the group’s overallrevenue following theacquisition, generatingabout €600m in revenue.

More than half ofretailers expect to laypeople off in the next twomonths, with two-thirds ofretailers rating theirprospects to the end ofFebruary as poor or verypoor.

Retail Ireland, which has3,000 members recentlypublished a survey of itsmembers’ sentiments for2011. The survey found just3 per cent of respondentswere more confident abouttheir business than theywere three months ago.Just over half were less

confident, with 44 per centas confident as they werewhen last polled inSeptember.

Regarding prospects ofthe overall businessenvironment, 76 per centrated them as poor, 21 percent rated them as averageand 3 per cent rated themas good. On the salesoutlook, 58 per centexpected sales to decreaseover the December toFebruary period, 26 percent expected them to staystable and 16 per centexpected them to increase.

Glanbia steps up 50% of retailers believelay-offs imminent

February 2011 3

Negotiations underway

In Brief

TGM

Workers at Gallagher’sBakery recently learnedthat 124 jobs are to go.Some of the workers havebeen with the factory sinceit was first opened by theGallagher family almost 19years ago.The bakery isknown for its range ofbreads, pastries and theFrench Mill line of frozenbaked goods.

Declan Gallagher, m.d.told the company’s 189staff that “Increasinglydifficult market conditions,increased commodity costs,declining sales and reducedproduct prices have putimmense pressure on thebusiness, this has beenexacerbated by theweakness of sterling whichhas affected our ability tocompete in the UK market.”

However, intensivenegotiations with

prospective buyers arecurrently underway to savethe local ‘fresh’ business.

“Unfortunately, the‘frozen’ business is notsustainable in the longterm. Its position has beenunder review for some timeand we have now arrived atthis decision which hasbeen taken with someregret.”

Gallagher’s was boughtout by IAWS in 2007 andthe next year IAWS becamepart of the Swiss GroupArytza. The same companyowns both French Mill andCuisine de France.

Less than a year agoGallagher’s announced a36-job creation programmewhich would have built upthe workforce to 207 overthree years with a€780,000 Údarás naGaeltachta investment.

Fyffes:

Fruit importer Fyffes isset to buy one-third ofGerman rival, Fruchtimportvanwylick GmbH, for severalmillion euro. The companysaid that it has agree to buy33.3 per cent of thecompany, subject toapproval by the Germancompetition authorities.

Dunnes StoresDunnes Stores made an

after-tax profit of nearly€7.8 million in the financialyear ended 31 January2010 from its operation inSpain, food manufacturing,and property holdings,according to just-filedaccounts.

Profits were down athird on the previous yearwhile the dividend paid toMargaret Heffernan andFrank Dunne fell fromnearly €5.5 million to justover €146,800.

Shareholders’ funds roseto €105.3m from €97.7mthe previous year and theamount of cash at hand andin the bank rose fromnearly €40m to almost€52m.

Turnover fell from€124.3m to €119.5mduring the financial year, ofwhich more than €76.3mwas with Dunnes Storesitself.

Linden Foods:Tyrone-based meat

processor Linden Foods hasinvested Stg£10 million innew retail packing andproduct developmentfacilities at its Dungannonheadquarters.

The company hopes tocreate 85 jobs over thenext three years on theback of the new investmentwhich would bring its totalemployment in Tyrone to520 people.

Linden Foods is part ofthe Linden Food Groupwhich also consists ofSlaney Foods and IrishCountry Meats. thecompany which has anaverage turnover of morethan Stg£300 million,employs 1,100 people onseven sites across Irelandand England.

Irish Creamery MilkSuppliers

The Irish Creamery MilkSuppliers Association hasjoined the Irish Farmers’Association in its oppositionto the Climate Changeresponse bill, describing itas “lunacy”.

“It is madness, as weattempt to grow our wayout of the current nationalcrisis through export-ledgrowth to be taking onextra burdens over andabove what is alreadybinding on Ireland by wayof international obligation”,said association presidentJackie Cahill.

N E W S

Superquinn was founded in 1960as ‘Quinns Supermarkets’ in Dundalkby Feargal Quinn, and the companyheadquarters were later moved toSutton, Dublin. The trading name wassubsequently changed to Superquinn,in part to differentiate it from rivalQuinnsworth, which had started in theearly 1970s.

In 1991, Feargal’s son EamonnQuinn took a key management role asdeputy chairman.

In 2005 the company, which hadbeen entirely privately held by theQuinn family was sold to a consortiumcalled Select Retail Holdings for areported €450m, of which €270mwas the value of the property portfolioin the sale, according to sources.Simon Burke replaced Feargal Quinnas Executive Chairman of the company,with Quinn becoming non-executivePresident of the business. EamonnQuinn subsequently left the company.

The company operates 20supermarkets under the Superquinnbrand and 4 convenience stores underthe “Superquinn Select” brand. It hasthree level of own brand products:

Euroshopper, Superquinn andSuperior Quality. However, theEuroshopper brand is currently beingreplaced by Superquinn Essentials.

Superquinn is known for having avery high level of customer servicecompared to other supermarketchains. It is also known for havingintroduced a number of innovations,including Ireland’s first supermarketloyalty card, SuperClub, in 1993. Italso introduced self-scanning of goodsby customers in its outlets. It is alsopart of an Irish Internet shoppingportal Buy4Now, which providesInternet shopping services for anumber of Irish retailers.

The company’s innovations havenot all become successful. One sideeffort of the company was the failedbank Tusa, a joint venture with TSBBank. A joint venture with Texaco tointroduce small Superquinnconvenience stores at petrolforecourts, SuperQ, also failed.

Perhaps more importantly for thecompany has been its failure to expand- Superquinn has less than a third ofthe branches of its other full-service

rivals, Tesco Ireland and DunnesStores, and is now even eclipsed bydiscount stores Aldi and Lidl, who havebeen aggressive in acquiring sitescompared to Superquinn. Its stores arealso heavily located in the Dublin andLeinster areas, in contrast to the otheroperators which operate nationwide.

Superquinn owns the MontroseHotel site in Donnybrook, Dublinwhich they purchased for €40 million.Superquinn also have sites inClongriffin and Kilmainham. Since thetakeover Superquinn has openedstores in Ranelagh, Rathgar,Rathborne and Portlaoise.

In October 2010 Superquinnopened for business in Heuston SouthQuarter.

In December 2010 Andrew Streetwas appointed as the new ceo ofSuperquinn. Street has worked in the

retail sector for more than 25 years,most recently as Dunnes stores’ chiefoperating office.

Street replaces Simon Burke whohas ran the company as executivechairman since Superquinn waspurchased by SRH in 2005.

Burke will now become non-executive chairman of the companyand relinquish responsibility for theday-to-day management ofSuperquinn.

Fifty Years Innovating

4TGm

Andrew Street

Simon Burke

Still 1st forsales too!

Another year, another first.

Once more, Brennan’s is the best selling bread in Ireland.

And we’re also up a spot, now number three

in the Nielsen top 100 brands.

So if you want to stock the best sellers,

choose the entire Brennan’s range

and stick with a winner.

6 TGm

Tesco, the world’s third-biggest retailers, missedChristmas sales forecasts asanother string of Britishstore groups said winterweather hit purchases ofnon-food goods.

The 0.6 per cent rise inTescos underlying Britishsales fell short of risesreported by supermarketrivals J Sainsbury and Wm

Morrison.Laurie McIlwee said

Tesco suffered because itwas reporting over ashorter trading period thanSainsbury and also hadmore out-of-town stores,which were more disruptedby bad weather, than rivals.

A strong performance ayear ago and pressure onconsumers from highertaxes and petrol prices didnot help.

Tesco said group salesrose 6.2 per cent excludingfuel.

In Britain where Tescoaccounts for abut Stg£1 inevery Stg£7 spend atretailers, grocers had abetter Christmas than most

specialist chains as a trendtowards one-stop shoppingwas exacerbated by boutsof heavy snow.

Tesco, which makesabout two-thirds of its salesand profit in Britain, saidChristmas sales at Britishstores open at least a yearrose 0.6 per cent, excludingfuel but including VAT salestax.

Febvre & Company, oneof the largest independentwine importers in thecountry, saw its sales slidelast year by more than 15%to just over €46m as therecession began to takehold on the alcohol trade.

Accounts filed recentlyshow that Greg andAnthony Alken, thebrothers who run the

company acquired by theirfather almost 50 years ago,recapitalised Febvre by€3.5m by writing off loansowed to them by the firm.

Febvre made a loss forthe year of more than€1.3m. The directors saidthe performance wasreasonable given theeconomic circumstance,sand they expected toincrease profitability thisyear.

The company is one ofthe largest suppliers of finewines to the restauranttrade. It also has operationsin France, where it owns awine-bottling operation.

The accounts show thatwine sales in Ireland areplunging in comparisonwith its Europeanneighbours.

According to the figures,Febvre, which employs 150staff, saw its sales in Irelandfall by 22%. Almost €21mof its sales were derivedfrom the rest of Europe, asimilar performance to theprevious year.

Tescomiss Xmas sales

Writing on the wall

Wine drinking on slide

Barcelona shopkeepersbelieved they werebeautifying their city whenthey commissioned graffitiartists to paint theshutters protecting theirshopfronts rather thanleaving them to be defacedby vandals.

But now they facebeing fined up to €600 bycity authorities intent oncracking down on “anti-social behaviour”.

The council says theartists’ graffiti “degradesthe urban fabric” in muchthe same way as washinghung on balconies, andhave fined more than 160

businesses this year.But the group behind

the schemes to paint overthe steel security barrierssay they are over-subscribed frombusinesses who want toprevent scribbled spray-painted signatures or“tags”. The taggers respectthe art and do not paintover it.

The grafiteros point tothe more liberal attitude ofMadrid and Valencia.

A magazine recentlyinvited grafiteros to paint100 shops in Madrid’sMalasana area in onenight.

N E W S

8 TGm

A TOUGH CHALLENGE FOR DISCOUNTERS

Irish perceptions of discounter retailers are changing. The recession has forced many consumers to cuttheir food budgets, and thus more are shopping in discounters. First-hand experience has seen attitudestowards discounters improve between 2008 and 2010. However, as economic commentators claim to seean end to the recession on the horizon, discounters face a tough challenge to retain their new customerbase, as pre-recessionary trends towards premium positioned products begin to creep back into the Irish

shopping basket. Can rock-bottom pricing tactics maintain brand loyalty, or will discounters need to evolveto stave off the advances of mainstream supermarkets? The following report from Mintel examines thedynamics of the discounter segment of the food retailing market in Ireland. This includes both harddiscounters and also supermarkets that have rolled out value-led exercises recently in response to

changing consumer trends.

A T O U G H C H A L L E N G E F O R D I S C O U N T E R S

Discounters (sometimes referred toas hard discounters) are retailers thatsubscribe to the ‘stack it high, sell itcheap’ mentality. Lidl and Aldi are thetwo leading examples of these ‘no-frills’retailers, which target price-consciousconsumers.

The focus of these (hard)discounters to date has arguably beencentred on offering one thing: lowerprices. This has been achieved throughgreater economies of scale, forexample, by negotiating with suppliersto get the lowest possible price, and byusing identical store formats.

However, their offer is not to beconfused with the recent activity ofmainstream multiples such as Tescoand Asda, both of which have turnedtheir attention to dramatic price-cutting exercises during the recession.

The business models for Lidl andAldi are detailed in the CompetitiveEvaluation of the Groceries Marketsection, which offers further guidanceon the distinction between discountersand other food and drink retailers.

A multiple grocer (supermarket)sells a wide variety of goods, both foodand non-food items. A supermarketcan range in size anywhere between400m2 and 2,500m2.

A convenience store (also called ac-store) tends to be smaller in size, istraditionally open for longer hours andtypically sells staple groceries andsnacks, although it also stocks a rangeof nonfood items. Many petrol stationsalso supplement their operations with

the offer of a convenience store. Pricesare typically higher than those in alarger supermarket.

As consumers become morehealth-conscious (TGI data 2004-09),demand for products relating to foodintolerance is set to increase.

The discounter business modelmay be focused on offering the lowestpossible price at an acceptable price,but that doesn’t mean they shouldignore value-added food ranges.

Specialist foods such as gluten-freeproducts are showing increaseddemand, and discounters are poised tooffer consumers low-cost alternativesto mainstream supermarkets.Arguably food with functional benefitswould need to be priced in a premiumbracket, but their products need onlybe cheaper than those available in rivalstores, thus still saving consumersmoney.

The recession has seen consumersadopt many new ways of saving money.One trend that has seen a revival isconsumers growing their own fruit andvegetables. Websiteirishallotments.net (January 2010) isreporting a steady rise in traffic frompeople looking for allotments in theirarea, while TGI (2004-09) datahighlight an almost 30% increase inthe number of NI and RoI consumersgrowing their own vegetables, and a10% increase in growing vegetables.

While there is growing interest ingrowing your own vegetables and fruit,website farmersjournal.ie (2009) notes

that seed prices have increased in thelast decade. Consumers who wish togrow their own may look for lower-costoptions.

There may be an opportunity fordiscounters to target the ‘grow yourown’ segment. Sales of discount seeds,soil and plant food might attract themin-store.

Non-food weekly special offersoccasionally include gardening tools;the concept of ‘grow your own’ couldbe tied in with promotions on suchitems.

The recession has helped to pushmore consumers through discounterdoors since 2008. With the UK and NIeconomy returning to growth, and theRoI economy expected to beginrecovering in 2011, it may not be longbefore shoppers find themselves ableto increase their spend on groceries.

As consumers become morefinancially stable, they may resumetheir previous enthusiasm forpremium-positioned goods.

One of the key challenges of thenear future therefore will be fordiscounters to maintain the same levelof footfall and spending in-store.

A greater emphasis on whydiscounters should be a mainstay ofthe consumer’s weekly groceryshopping, rather than simply being a‘rainy day’ retailer, is necessary inorder to retain customer numbers andspending.

This means maintaining innovationlevels and generating greater brandawareness, alongside the low-costoffer.

February 2011 9

TGM

the recessionhas seenconsumers

adopt many newways of saving

money.

“

10 TGm

The recession has seen Irishconsumers feel the weight of their debtmore acutely. The average RoIhousehold faces debts of up to€133,000 (CSO 2009), while NI/UKhouseholds have an average debt of£57,809 (Credit Action 2010).

Alongside this high debt, some94% of RoI SMEs claimed to haveeither frozen or reduced pay (ISME2010).

Ultimately, consumers have a highlevel of expenses, and less money topay them with. This has led to anincrease in the number of consumersvisiting discounters in order tomaximise their grocery budget, with23% of NI and 43% of RoI consumersclaiming to shop more at discountersduring the recession (Toluna 2010).

Between 2004 and 2010, the all-Ireland discounter market has grown,with the value of sales at discountersestimated at €654 million in RoI andNI at £124 million in 2010.

Some 41% of NI and 56% of RoIconsumers claim to visit Lidl at leastonce a month for shopping, while 42%of RoI consumers claim to regularlyshop at Aldi (Toluna 2010). In NI and

RoI, Lidl is the second most regularlyvisited supermarket, behind Tesco.Aldi is the fourth most visitedsupermarket.

A higher degree of planning anddiscipline in regards to shoppingbudgets and habits has helped to driveinterest in discounters. Approximatelyhalf of all Irish consumers (MillwardBrown 2010) claim the recession hasled them to become more careful withhow they spend their money.

Between 2004 and 2010 there hasbeen a 5-percentage point increaseamong Irish consumers agreeing thatthey plan their weekly shopping (TGI).

Trade sources claim that in pre-recession times, Irish consumers had agenerally poor opinion of discounters,with many consumers steering clear ofthe likes of Lidl and Aldi. Consumers atthis time were inclined to believe thatthe products offered by discounterswere of inferior quality, and were alsoconscious of the social stigmaassociated with visiting these stores.

However, consumers havereassessed how they view value formoney and are demanding acceptablelevels of quality for an acceptable

price. Premium-positioned brands nolonger hold the same power amongconsumers. TGI data (2004-09)highlight a year-on-year decrease inthe level of consumers who feel well-known brands are better than shops’own-brand products.

Aldi Ireland in 2009 claimed thatthe recession was the ‘jolt’ that someconsumers needed into trying theirstores, with the restriction onconsumers’ spending likely to haveprompted consumers to seek valuebrands and products. Some 52% of NIand 57% of RoI consumers claim thatthey like to try new food products (TGI2009), which bodes well fordiscounters.

More experience of discountershas led to a segment of Irishconsumers having positive opinions ofdiscounters and the products they sell.Some 37% of NI and 48% of RoIconsumers agree that the productsthey buy at discounters are of equalquality to those in mainstreamsupermarkets, while 13% of NI and15% of RoI consumers claim thesimplistic nature of discountersappeals to them (Toluna 2010).

A T O U G H C H A L L E N G E F O R D I S C O U N T E R S

February 2011 11

TGM

Few Irish consumers agreed thatthey felt embarrassed by shopping indiscounters, with a higher level ofconsumers viewing discounter brandsas offering good bargains and value formoney, as opposed to being ‘justcheap’.

Lidl and Aldi have seen their brandstrength increase since the outset ofthe recession, with both retailersreceiving awards in the UK and Ireland(respectively) for being bestsupermarket (2009).

Further to this, Which? magazinereported that 61% of consumers in theUK felt that Lidl and Aldi offered highlevels of customer satisfaction.

Both Lidl and Aldi have capitalisedon their rising popularity, increasingthe level of new product launches tothe UK and Irish market. There weresome 412 new product launches byLidl and Aldi in 2009, compared tojust 30 the year before. Furtherinnovation has seen Lidl announceplans to open convenience formatshops.

This bodes well for discounters,aiming to maintain or increase theirmarket share going forward.

While discounters have seen aboost to brand power and usageamong consumers, mainstreamsupermarkets such as Tesco, Dunnesand Asda still have sizeable share ofthe Irish food retailing market(multiples represented 68% of all foodsales in NI and 48% in RoI in 2009).

Tesco is Ireland’s most regularlyused retailer, with 81% of NI and 74%of RoI consumers regularly shopping atits stores (Toluna May 2010).

Mainstream supermarkets havetaken steps to associate their brandsmore closely with offering value. Tescofor example launched its TescoDiscounter brand in 2009, to competedirectly with discounters. Taking thisinitiative a step further, the companyannounced plans to trial discounterstyle store formats in 2008.

Asda, on the other hand, hascontinued to market its brand asoffering low prices, utilising pricecomparisons in its advertising to drivethis point home. Further to this, in May2010, UK food retailer Asda boughtover the discounter brand Netto tofurther expand its operations.However, it is important to note that itis unlikely that Asda will continue tooperate these stores in a discounterformat.

Mainstream retailers are aiming toreclaim business they have lost todiscounters. RoI supermarkets havealso found themselves having to lowerprices drastically to lure consumersaway from cross-border shopping.

The recession and intensecompetition from the mainstreamsupermarkets has seen a high level ofinnovation among discounter brands.

Own-label product launches at Lidland Aldi jumped drastically between2008 and 2009 (GNPD 2010), asdiscounters expanded their productoffering to meet the demands ofconsumers.

Some 17% of NI and 16% of RoIconsumers felt that the product rangeoffered by discounters is too limited(Toluna 2010). According to Aldi, atypical store stocks 900 product types;Lidl claims to offer twice as many.However, the average mainstreamsupermarket will offer consumers3,000 products.

Increasingly, levels of new product

development (NPD) should help tomeet consumer demands, andmaximise discounter revenue.

Innovation has also seendiscounters expand their non-foodoffering. Lidl for example, in 2009rolled out an online DVD rental service,while both Lidl and Aldi have dabbledwith the travel industry.

Discounter brands are stronglyassociated with value for money, andmay help to attract price consciousconsumers in a variety of non-foodmarkets.

Businesses are focusing more oftheir attention on identifying trendsthat can guide new opportunities.Trend watching has emerged as avaluable new tool in the insightrepertoire, and is becoming a valuedsource of new business inspiration.Mintel’s approach in this section goesbeyond merely identifying trends.Mintel identifies high-altitude trends(sometimes referred to as ‘currents’)and translates these into on-the-ground implications and opportunitiesrelevant for this market.

Typically, trends are drawn byconnecting the different, the new andthe unexpected across a widelandscape of social, cultural, political,technological and economic influences.Crucially, they imply interestingchanges in the way that we behave andconsume. They are not necessarilymeasurable – by definition, trendspotting is operating within a moreconjectural and intuitive arena. But thepurpose of this section is to promptdebate and to surface new ideas –hopefully bringing creativity andinspiration to the businessdevelopment process.

The Consumer Targets Groupssection notes that younger consumersare among the consumers leastinclined to shop in discounters.

However, with fewer assets and aneconomic outlook that looksparticularly grim for young people, theunlucky generation will be forced tobecome shrewder with their financesand grocery spending.

Younger consumers are therefore akey demographic that discounterscould turn their attention to.

Using their value-orientedbranding, discounters could highlightwhy they are of particular importanceto cash-conscious young people. Thismeans promoting the fact thatdiscounters allow the ‘unluckygeneration’ to spend less on food andmore on the things that matter tothem, eg leisure and entertainment.

An emphasis on how shopping indiscounters can reduce stress overmoney worries in general is likely toresonate with this demographic group.

Everyone has their favourite storyof strange brands that failed becausethe name just didn’t work.

One can point to the Nova, whichfailed to take off in Spanish-speakingcountries where it translates as’doesn't go‘ or the Pinto, which inBrazilian slang refers to male genitalia.

This all suggests that the power ofthe name is increasingly powerful, atleast in gaining attention (and/or trial).Not every company can be Citroen andborrow the charisma of the world’smost famous artist by having a modelcalled the Picasso.

The butter substitute I Can’tBelieve It’s Not Butter was theancestor here. A mix of bluntness andsavviness, it knowingly hinted at thefact that it could not be called butter(or advertise itself as such) because ofthe rigid industry guidelines.

Then there was Haagen Dazs,whichwas contrived as a faux-Europeanbrand of ice cream to try to conjure upsome olde-world traditions andheritage where there was none. In fact,a Polish immigrant called ReubenMattus invented Häagen-Dazs in 1960in New York, and he chose the namebecause it sounded Danish. Peoplecould not get enough of it; brands haveto work harder than ever.

The world seems to have hadenough with names that are toostraight and descriptive. Thepostmodern consumer, well versed insemiotics and literary theory, can nowcope with brand names and TV showsthat play games with acceptedconventions.

That is perhaps why a newgeneration of brand names are slightlymore oblique than their predecessors.One can imagine standard researchtechniques blowing out names likeMonster, Apple, Amazon or Caterpillarbecause they weren’t clear or relevantto their market or motivating.

The sheer number of own-label

brands that discounters offer is suchthat the consumer may be left a littlelost when making a purchasingdecision.

Innovative product names couldhelp to boost brand awareness ofdiscounter products among Irishconsumers; focusing less on thediscounter brand name (eg Lidl), andmore on the sub-brands within store.

Should discounter sub-brandsbecome better known, it might help toenhance the perceived brand value ofdiscounters, not to mention theexclusive nature of these brands thatmay help to attract more consumersin-store.

A T O U G H C H A L L E N G E F O R D I S C O U N T E R S

12 TGm

Operating exclusively in RoI, Aldi isone of the main powers in thediscounters market. First entering theRoI market in 1999, the companycurrently has over 70 outlets.

Currently, Aldi does not operate inthe NI market, operating exclusively inRoI. However, the company does have apresence in the UK market.

True to the discounter ethos, thecompany heavily promotes itself asproviding great value, but alsoproviding quality. This ethos is reflectedin the company’s slogan ‘Spend a little,live a lot’.

According to a survey by theNational Consumer Agency (NCA), Aldiis Ireland’s best value discounter(2009).

To further highlight the quality of itsproducts, the company website hosts asection that displays feedback that Irishmagazines/websites/press have to sayabout its products.

The company is increasinglydeveloping its brand image as achampion of Irish goods, throughinstore displays of such goodsemblazoned with the logo ‘Produced inIreland’.

Aldi, short for Albrecht Discount,was first established in 1913, when Karland Theo Albrecht took over their

mother’s small store in 1946,increasing its number of stores to 13 by1950.

In 1960, the Albrecht brothers splitthe company into two, with both shopsoperating as separate entities – AldiNord (north) and Aldi Su d (south). AldiSud is the owner of the stores operatingin the UK and Ireland.

While Aldi may control only amarginal segment of the Irish foodretailing market, in its home countryGermany, it is a dominating force, withsome 4,120 stores (2,400 Aldi Nordand 1,720

Karl Albrecht is Germany’s richestman, while his brother (Theo Albrecht –who died in July 2010) was Germany’ssecond-richest man.

Aldi offers typical grocery items suchas food, beverages, toiletries, etc. Manyof its products are own-brand labelled,with few (if any) branded goodsappearing on shelves. Typically thecompany will only stock two differentbrands for one kind of product. Aldialso runs weekly special offers onexpensive non-food items in-store, andcan include items such as computers,garden tools etc.

Aldi entered the RoI market in1998, being the first discounter in themarket. Since then it has grown rapidlyto include 70 outlets in the region, aswell as a distribution centre in Cork,opened in . The company has beenactively expanding in RoI, announcingits plans in 2008 to open 35 new storesin Ireland, investing upwards of €350million and creating 650 new jobs by2011.

Aldi employs 1,200 people inIreland but expects its workforce toexpand to more than 2,000 by 2012.

The original Aldi format had just650 lines, though that has since beenincreased and is thought to be around900 in Ireland. The company hasexpanded its product offering greatlysince entering the Irish market,incorporating a higher level of Irish-sourced goods. For example:

All fresh beef is supplied by AIBP(the meat division of Irish FoodProcessors – IFP) – RoI’s largest beefprocessor.

The store claims to have dailydeliveries of freshly baked bread andcakes from local bakeries, using locallysourced ingredients.

The company is also committed tosourcing local fruit and vegetables‘wherever practically possible’.As well asbeing named the best Irish discounterin 2009, Which? magazine also namedAldi the UK’s best supermarket in2009. Accolades like these help toenhance the brand image of the storeas a force to be reckoned with by themultiples, rather than simply being adiscounter.

On 28 July 2010, the co-founder ofAldi, Theo Albrecht, died, being thesecond-richest man in Germany afterpursuing aggressive expansion for thebrand with his brother across the world.

Recently, Aldi promoted several ofits in-store offers in conjunction with theWorld Cup in South Africa. Thisincluded special deals on wines fromthe countries of participants in thetournament, such as CambalalaChardonnay from South Africa and OakAge Claret from France.

ALDI

ALDI SUD

(l-r): Donald Mackay, m.d., Aldi Stores Ireland and Paul Foley, Group m.d., Aldi UK and Ireland

A T O U G H C H A L L E N G E F O R D I S C O U N T E R S

14 TGm

milkfresh

From our family to yours

16 TGm

Unlike Aldi, Lidl operates in both NIand RoI. Lidl was the first Germandiscounter to enter the NI market,opening its first store in NI in 1998.Currently, the company has 35 storesoperating in NI.

In RoI the company has 121 stores.In total the company has 156 stores inIreland.

In 2010, the company is celebratingten years operating in RoI, havingopened its first store in the region in2000.

While positioning itself as adiscounter, Lidl typically promotes thelow prices consumers can expect in-store, while also highlighting the qualityof these goods.

The company utilises the slogan‘Seriously Cheaper’ in its Irishmarketing, alluding to the company’sdiscounting nature. Further to this, in itssummer 2010 NI advertising campaign,the company makes use of the slogan‘let the big shop begin’ – encouragingshoppers to visit Lidl for their weeklyshopping rather than for top-upshopping.

As noted in the Important FactorsWhen Shopping section of this report,Irish consumers feel that a wide rangeof goods is important for asupermarket. Marketing the expansive

nature of its range may help Lidl addvalue to its brand, compared to rivalAldi.

While the NCA named Aldi the bestdiscounter in Ireland (2009), Lidl hasthe distinction of being named thecheapest grocery retailer in RoI by theNCA (2009). The NCA found Lidl’sprices to be 20% lower than those ofthe main supermarkets.

The Schwartz holding company isthe owner of the Lidl brand globally,with the Schwartz family beginning asfruit wholesalers in 1930. The companyopened its first Lidl brand discounterstores in 1973.

Since then, Lidl has become one ofGermany’s biggest retailers, operatingsome 3,000 stores in Germany andwith a presence in 20 countries aroundthe world.

Lidl has continued its globalexpansion of its discounter brand, withplans to open stores in Bosnia,Herzegovina, Mexico, Canada,Montenegro and Serbia by 2015.

Like Aldi, Lidl offers a range oftypical grocery items such as food,beverages, etc at discount prices.However, the retailer operates in alarger store format and offers morebranded products.

The company has increased thenumber of branded goods it offers in-store to customers as well as its own-label items.

Store formats are quite simplisticfollowing the ‘stack it high, sell it cheap’mentality. Recently the company (alongwith Aldi) began to accept credit anddebit cards in-store, as well asintroducing Electronic Point of Sale(EPOS) to stores before its rival Aldi.

The company began with seven RoIstores in 2000, growing to 121 in2010. Similarly, Lidl first opened in theNI market in 1998 and has expandedto include 35 stores in the region.

The company has been activelyseeking to expand in Ireland, with itswebsite highlighting the ideal type ofland that the company seeks forexpansion.

In the UK, the company has beentaking advantage of the commercialproperty market slump to expand itsstores. In 2008, Lidl announced itsplans to expand at a rate of 8-12% peryear for the next 15 years. That equatesto 50 new stores per year in the UK.

Lidl claims to stock up to twice asmany food ranges in-store as its rivalAldi, with an estimated 1,600 rangesavailable in-store (compared to Aldi’s900).

Similar to its rival, Lidl hascommitted itself to increasing its brandoffering, as well as expanding thenumber of Irish-sourced productsavailable in-store.

In June 2009, Lidl announced itsplan to move into the Irish conveniencestore market, helping to expand itsbrand into other segments of foodretailing. The Lidl express store formatis half the size of a standard Lidl storeand includes a bakery, takeaway coffeeand meal deals.

In February 2010, Lidl purchasedTengelmann's Bulgarian and RomanianPlus stores for an undisclosed sum,highlighting the company’s increasingexpansion in other markets.

In the summer of 2010, thecompany embarked on a strong radio,TV and print advertising campaign inboth NI and RoI. NI campaigns featureTV and radio celebrity Colin Murray,while in RoI much of the focus of Lidl’sadvertising in 2010 is the celebration ofits tenth year operating in the region,as well as highlighting special offers.

LIDL

A T O U G H C H A L L E N G E F O R D I S C O U N T E R S

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Multiples dominant force in Irishfoodmarket

Multiples (mainstream supermarkets)have a 68% controlling stake in the NIfood retailing market, while controllingapproximately 48% of the RoI foodretail market. This highlights that interms of sales value and volume, Irishconsumers generally prefer to shop inmainstream supermarkets.

The NI multiple market benefitedgreatly from the cross-border shoppingtrend, sustaining high growth between2008 and 2010, despite the recession.

On the other hand, RoI suffered asmore consumers chose to shop in NI, orshopped more frequently in discounterstores.

To meet the increasing demand forvalue for money by Irish consumers,several of the key players in themultiples market have adopted newstrategies to help them maintain theircustomer base.

Please note, only several keycompanies are covered in this report.Companies such as Marks & Spencerare not reviewed, as they positionthemselves closer to the premium endof the market and do not directlycompete with discounters.

More Competition from the‘big boys’.

In pre-recession times, mainstreamsupermarkets seemed to be more orless unworried about discounter stores.However, as the recession has forcedmore consumers to tighten their belts,mainstream supermarkets such as Asdaand Tesco are recognising them aslegitimate threats to their customerbase

It is likely in the near future that theIrish food retail landscape willexperience a higher degree ofinnovation and lower pricing frommainstream supermarkets, as they aimto maintain their customer base andwin back cost-conscious consumersfrom discounters.

This points to a need for discountersto actively attempt to improve thebrand loyalty among their user bases.

The largest Irish-owned groceryretailer, Dunnes is one of the oldestestablished multiples in the NI and RoImarket, first opening in 1944 (RoI) andexpanding into NI in 1971. In total thecompany has 139 stores in Ireland,with 116 shops in RoI and 23 stores inNI.

It is important to note that not allDunnes stores sell groceries (some areclothing retailers only), but thecompany is Tesco’s biggest rival in thegrocery market. The Irish Independentestimated in July 2010 that thecompany generates €2 billion turnover(food and non-food) per year, rivallingRoI Tesco operations.

Dunnes presents its brand asoffering ’good quality products atcompetitive prices‘. In recent years,Dunnes has invested greatly inpromoting its Irish heritage. Tradesources indicate that this has helped toimprove the company’s market shareduring 2008 and 2009, with Irishconsumers wanting to support an Irishbusiness (as opposed to the UK-ownedTesco).

Dunnes’ St. Bernard own-brand lineis used to effectively compete withdiscounters, with the own brand goodsbeing offered at competitive prices.

In January 2010, Dunnes quashedrumours that UK supermarket Asdawas planning to take over

the company, effectively stating itsintention to continue competing in RoI.

According to data compiled byNielsen Media Ireland, Dunnesincreased its spending on advertising inbroadcast and print media in RoI byalmost 25% in 2009.

In an attempt to help control costs(and pass savings on to consumers),Dunnes announced in 2009 it requiredall its suppliers to be 100% EDI(Electronic Data Interchange)compliant, meaning all invoicing shouldbe carried out online.

ESTIMATED GROCERY RETAIL SALES OFMAINSTREAM SUPERMARKETS, ALL-IRELAND

ROI AND NI, 2004-10

IoI RoI NI€bn Index €bn Index €bn £bn Index

2004 7.36 100 4.70 100 2.66 1.84 1002005 7.46 101 4.75 101 2.71 1.84 1002006 7.82 106 4.94 105 2.88 1.97 1072007 8.57 116 5.47 116 3.10 2.11 1152008 8.57 116 5.38 114 3.19 2.18 1182009 8.88 121 5.09 108 3.79 2.79 1522010 (est) 8.56 116 5.23 111 3.33 2.82 153

Source: CSO/Revenue Commissioner/Mintel

DUNNES STORES

February 2011 17

Margaret Heffernan

18 TGm

Both NI and RoI’s number onesupermarket (in terms of value sales),Tesco has an extensive network ofstores throughout Ireland, including116 outlets in RoI and 34 in NI.

Tesco is positioned as a value-oriented mass-market retailer, using thewell-known slogan ‘Every little helps’ topromote the value for money itprovides. Since the start of therecession, in an attempt to furtherposition itself as offering value formoney, Tesco has adopted the tagline‘Ireland’s Biggest Discounter’,effectively comparing itself to rivals Lidland Aldi.

This new branding strategy tied inwith the company’s launch in 2009 of anew sub-brand for the company; TescoDiscount. This was in direct response tothe growing threat discounters provedto their business in the recession. Thissub-brand is positioned between the‘Value’ and core Tesco own-label rangesin terms of price, with around 500products introduced.

Although Tesco’s background inIreland is as a grocery retailer, much ofits expansion activity in recent yearshas focused on non-food markets,particularly financial services and

telecoms. Its stated aim is to be asdominant in non-food as it is in foodretailing.

In 2009, Tesco UK announced plansto introduce a new 'pay day' discountscheme whereby the retailer will reducethe prices of selected products aroundthe time that customers will have justbeen paid, and therefore, have the mostmoney to spend.

Reports suggest that the move isdesigned to retain customers that werepreviously considering trading down todiscount grocers Aldi and Lidl.

To further compete with discounters,in April 2009 Tesco UK announced itwas going to trial discount storeformats similar to Lidl and Aldi. Thediscount store format of about 15,000sq ft will be trialled at a location inScotland. The store is expected to focusprimarily on own-label and discounterbrands and as of August 2010 is still inthe planning stages.

In March 2010, Tesco Irelandannounced it had handed its €15million media account to Initiative, theagency which also handles Tesco's UKmedia coverage.

Frugal living takes its toll onsymbol groups

In 2010 the all-Ireland conveniencemarket is estimated to be worth €5.4billion, having declined by 10% since2009. According to trade sources (May2010), discounters and more frugalshopping habits have eaten into the

market share of symbol groups.The RoI market accounts for 83% of

the total all-Ireland market, standing at€4.8 billion in 2010, while NI (theremaining 17%) is estimated to beworth some £770 million.

Stores located in city and towncentre locations have taken the biggesthit, with footfall down by as much as15% according to some trade sources,particularly among RoI consumers. Asnoted in the

Internal Market Environmentsection, recession-affected Irishconsumers are more likely to plan theirshopping trips and stick to a budget.

In many regards, convenience storesare seen as ideal by consumers to allowthem the chance to buy impulse itemsand ‘top-up’ shop.

However, with more frugal attitudestowards grocery shopping, consumersare making less impulse purchases andavoid the higher prices they generallymust pay in convenience stores.

Additionally, the lucrative lunchtimemarket has taken a hit as moreconsumers are preparing lunches athome to take with them to work/schoolinstead of visiting a convenience store.This has seen a need for innovation inthe convenience sector.

Please note, only several key symbolgroups are covered in this report. Mostsymbol groups operate on the principleof convenience, as opposed to intensivecost-based competition, thus do notcompete directly with discounters.

TESCO

ESTIMATED GROCERY RETAIL SALES OFCONVENIENCE STORES ALL-IRELAND

ROI AND NI, 2004-10

IoI RoI NI€m Index €m Index €m £m Index2004 5,640 100 4,508 100 1,132 783 1002005 5,708 101 4,554 101 1,154 783 1002006 5,968 106 4,738 105 1,230 841 1072007 6,563 116 5,244 116 1,319 899 1152008 6,509 115 5,152 114 1,357 928 1192009 6,012 107 4,876 108 1,136 835 1072010 (est) 5,395 96 4,486 100 909 770 98

Source: CSO/Revenue Commissioner/Mintel

A T O U G H C H A L L E N G E F O R D I S C O U N T E R S

TGM

Operating in both NI and RoI,Musgrave operates the c-store brandsCentra, Mace, DayToday and severalother brands (also owning SuperValu).While the company has overseasoperations, three quarters of its totalsales originate in the all-Ireland market.

An Irish Times article (May 2009)noted that Musgrave’s pre-tax profit fellby 20% to €75.5 million in 2009 inRoI. It predicted further falls in itsprofits throughout 2010 as it focusedon helping its retail partners to cut theirprices on products by more than €140million in response to the ongoingrecession, intense competition andincreased consumer demand for value.

Musgrave stores compete withdiscounters by offering convenience –with more locations near consumers’homes/places of work, generally longeropening hours – as well as stockingmore well-known brands.

Musgrave, in order to help competeon price with mainstream supermarketsand discounters, has also expanded itsown-brand offering.

In February 2010, the Centra brandannounced it had been confirmed as anofficial sponsor of the GAA Hurling All-Ireland Championship. The sponsorshipdeal will last for three years, seeing theCentra brand replacing RTÉ.

A family-owned business, TheHenderson Group distributes food andother grocery products to theconvenience retail sector in NI. Thecompany has been in operation for over100 years.

In 2009 the company generated£455 million in revenue, an increasefrom 2008 (£407 million).

Henderson owns and operates theSpar, Eurospar, Vivo and Vivoxtrafranchises in NI. In January 2010 thegroup expanded its foodservice offeringwith the acquisition of NI café brand,The Streat.

As well as competing on price withdiscounters, Henderson has reinforcedits brand position as being a localcompany by supporting a number of NIcharities. Irish consumers are moreinclined to feel the need to support localbusinesses, while others may viewdiscounters as distinctly German.

Henderson markets its variousbrands through a number of localsponsorships. In July 2010, thecompany’s Spar brand sponsored theColeraine 10K race, as part of the Spar10K Grand Prix initiative.

The sponsorship shows the brand’slinks to healthy living and a healthylifestyle, helping to enhance the group’sbrand image.

Henderson Group bought the caféfranchise The Streat in January 2010.Henderson claims that the acquisitionwill help to expand its food offering,while claiming that it was a positiveinvestment in a local NI brand.

Local and health-orientedbranding to compete

Many c-stores sponsor and involvethemselves in local initiatives, as part oftheir CSR strategy. In the Mintel reportEthics and the Irish Consumer –Ireland, September 2009, it is notedthat 28% of NI and 30% of RoIconsumers feel it is important tosupport local businesses. Businessesperceived as being local and part of thecommunity will appeal to consumers.

Furthermore, with increasingconcern about health, consumers mayfind value in the health programmes,products and sponsorships of c-stores.Arguably, by comparison, discountersdo not focus as extensively onpresenting their products as beinghealthy, or as caring about health-related issues as other retailers.

Discounters may find they canenhance their brand name and competemore effectively with convenience storesby associating themselves more closelywith healthy activities or strongerpromotion of in-store items that aregood for you.

Some consumers may have theperception that eating healthily can beexpensive. Discounters could advertiseproducts that are healthy andinexpensive, showing consumers how toadopt a healthy diet on a budget.

MUSGRAVE

HENDERSON GROUP

February 2011 19

Chris Martin

20 TGm

nteresting times lie ahead forthe drink industry, and notjust in the next few years, buteven further down the line,and into the next decadewhere a number of factorsmay come into play that willhave a major effect overallmake-up of the industry.

At least, this is the waythat An Bord Bia, The Irish Food Board,sees it, as they recently undertook avery detailed study that tells us how thealcoholic drinks industry may haveevolved by 2025, and whatopportunities it may present to Irishmanufacturers.

Certainly, a study with an outlinelike this will immediately grab theattention of a whole host of consumers(particularly those with a deep interestin the various aspects of the industry),who will be eager to see how thealcoholic drink industry will look like 15years from now.

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

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

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

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

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

•piecing these clues together willenable us to explore the most plausiblefutures for your industry

In terms of how to judge what thefuture holds, three stages have beenidentified as being key in determininghow this particular industry is going tolook in the future. The first of theseStages is Trends and driver scanning,which involves conducting 14 one-hour

interviews, which are conducted withindustry representatives and relevantexperts in areas such as design trends,future legislation and sensory trends.Desk research is also used during thisstage, with companies like Euromonitor,Mintel, Nielsen, TNS, ESRC and theNational Intelligence Council beingsought for their expert opinion.

The second Stage that they look atis Impact Assessment, which acts as aworkshop to prioritise drivers with thegreatest impact. As a result of astandard driver prioritisation workshopprocess with the Bord Bia and TFC coreteam, 23 drivers were prioritised froman initial list of 59.

Finally, the third Stage is calledExploring Implications which is, in manyways, the most important of thesestages. It involves another workshop,which helps to identify strategicpriorities, where forces of change arereviewed and refined in a one-dayworkshop with Bord Bia, Irish industryrepresentatives and other experts.

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

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

Given how important theseimplications may well turn out to be,and how they can drastically change theindustry from the way it is set-up at themoment, it is probably worthwhile totake a detailed look at theseimplications, and what impact it willhave on the alcoholic drinks industry by2025.

the recessionhas seenconsumers

adopt many newways of saving

money.

“I

T H E E I G H T F O R C E S O F C H A N G E

THE EIGHT FORCES OF CHANGE

TGM

February 2011 21

Firstly, in terms of competition forprovenance, Bord Bia believe thatprovenance will still be hugelyimportant by 2025, as it will be morefluid and less tied to specific nationalgeographies or heritage claims. Thereasons that this may be the case isbecause of a greater interest in history,heritage and tradition, growing demandfor local products and services, as wellas democratization of high qualitymanufacturing.

Under this force of change, it isestimated that consumers will havebecome jaded with near identicalstories of authenticity and copy-catprovenance claims. It will also be moreimportant where a product is processedand how much quality it has overall,while provenance in general will bemore local than national, while at thesame time consumers will be moresensitive to the difference between aSiberian vodka as opposed to one from

the Black Sea region.Mainstreaming for Connoisseurship

is the next force, and it shows that, by2025, a more discerning attitude toalcoholic drinks will be moremainstream, leading to a decoupling ofprice and connoisseurship.

As Billy Steel, a Beverage Managerand ex-barman at Mesa Grill, New Yorkis quoted as saying: “The main changeover the last few years is that societyhas created a culture that treatsalcoholic beverages like food. Thebarman has become a 'chef'. As withfood, there is now an emphasis on freshingredients e.g. fresh juices. 10-15years ago this was not the case”.

This sophistication amongstconsumers is an interestingdevelopment that comes about becauseof a greater desire for personalexpertise, greater scrutiny of valueoffered by brands, and reaction againstmass brands.

The report by Bord Bia states that,by 2025, connoisseurship will no longerbe about price, meaning that, even atthe value end of the market, people willexpect brands to have a meaningfuldifferentiation. They also feel thatconnoisseurship will be less abouthistory and tradition, and more aboutthe overall craft and commitment toexcellence that goes into a product.

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

22 TGm

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

The next force is related in a certainway to on-trade specialization, as in-

home sophistication will be powerful asthe shift to in-home drinkingconsumption will continue, and the in-home drinking experience has driftedmore closely towards the on-trade.

This can be caused by increasingrelative cost of drinking in the on-trade,as well as greater interest in“professionalizing the home”. It isexpected that, by 2025, the dividebetween the on-trade and off-trade willbe more permeable, as traditional on-

trade occasions move in-home, withconsumers expecting a good deal morefrom an experience in-home.

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

New forces of Global demand willmean that opportunities for significant

T H E E I G H T F O R C E S O F C H A N G E

TGM

February 2011 23

growth will come from emergingmarkets in 2025. Spirits brands willneed to work harder to capture theyounger consumer in traditionalmarkets.

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

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

Energy-Efficient Production andDistribution may also see overall energycosts becoming much higher, affectingall aspects of production. This will becompounded by the tax that carbonemitters will be required to pay.

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

In terms of offering morecompetition, it will lead to focus,differentiation and collaboration, whilemore sophistication deals significantlywith consumer insight, branding andinnovation. Thirdly, more sophisticationis particularly important, as it meansthat the industry is able to understandyour customer, they can focus whereyou can win and can develop nichepropositions as well.

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

However, manufacturers/retailersneed to realise that they are operatingin a global market and facing increased

global competition, which requiresincreasingly sophisticated marketingand distribution expertise. Irishnesshas the potential to delivermeaningful differentiation in a globalmarket, though this does require aclear and consistent identity, as wellas the right balance between heritageand modernity.

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

It is necessary to note that it isdifficult to predict the future, whichmeans that all of the detailsmentioned within Bord Bia's reportshould be taken with a certain pinchof salt. Also, the future is not static,and continuous monitoring for signsof change is crucial.

However, Bord Bia also say thatpreparing for the future is better thanwaiting for the future to happen, andthe eight forces of change do act as agood starting point. Unfortunately,not everybody will heed this advice,and may not trust those who look sofar into the future, and might havebeen put off by certain assertions thathave been made about the alcoholicsdrink industry in the past.

In order to reinforce their point

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

“When it comes to the future, thereare three kinds of people; those who letit happen, those who make it happen,and those who wonder what happened”.

...there arethree kinds ofpeople; thosewho let it

happen, thosewho make ithappen, andthose who

wonder whathappened.

“

N E W S

A Christmas like no other

Efficient Consumer Response (ECR)Ireland commissioned nationalresearch on the grocery shoppingbehaviour of consumers during theChristmas 2010 trading period inIreland.

Conducted by Empathy Research,this was the first dedicated qualitativeand quantitative research onChristmas shopping behaviour inIreland, covering the what, why, whereand how of Christmas shopping.

It involved 3 phases conductedbefore (qualitative and quantitative),during (Facebook and physicaldiaries)and after Christmas (qualitative andquantitative) across all regions in theRepublic ofIreland.

The research showed that thesingle biggest influencing factor wasthe bad weather which hamperedChristmas shopping across the board.The underlying recession and financialconstraints also tempered consumerspending.

The weather forced 65% to shopmore locally although there weremixed views on the value available inlocal stores.

There was a concerted effort tosupport Irish and small businesses, aslong as they offered good quality andvalue. Value (94%) and quality (93%)were the most important attributes indeciding where to shop.

All saw that they could still enjoy

themselves without too much needlessexcess, entertaining at home andplanned to do the same again nextChristmas.

Impulse buying decreased asconsumers focused on their needs, anddid not always give in totheir desires.Before Christmas, 51% of respondentsexpected to indulge in impulseshopping whereas only 36% admittedto having done so after Christmas.

Most expected this year to betough financially and would continue tolook for the best value fortheir money,shopping around for deals, andhaggling for discounts.

Some had already started savingand planning for Christmas 2011particularly those on lower incomes asthis was the only way they couldmanage their finances.37% continuedto purchase Own Label products forChristmas, although only 29%expected todo so beforehand.

A focus on practical useful gifts willcontinue to prevail, as consumersunderstand that we’re all in thistogether and don’t have to proveourselves to each other.

The Budget 2011 had a limitedimpact on Christmas 2010 shopping –however it is likely to havea greaterimpact next Christmas, when the senseof caution around excessive spendingand waste at Christmas time will beeven more pronounced.

24 TGm

Britvic dropBritvic reported a decline in drinks

volumes in the UK as the snowyweather kept people away from pubsand its competitors increased thenumber of discounted special offers,but said the Irish soft drinks marketshowed some improvement.

The drinks group, whose brandsinclude Robinsons and Fruit Shoot,said overall group sales rose 20 percent to €334.3 million in the firstquarter of the year, helped by theacquisition of French business FruiteEnterprises, now known as BritvicFrance, for €237m last May.

In Ireland, market grocery volumesand value both rose, climbing 2.8 percent and 0.7 per cent respectively.There was also a slowing in the rate ofdecline in the pub and club channel,which declined 7 per cent in volumeand value.

Overall volumes for Britvic Irelanddeclined by 9.9 per cent. The companysaid savings from structural changeswill underpin the Irish business’sprofitability this year.

In the UK, the amount of still drinkBritvic sold was down 3.5 per cent inthe final quarter of 2010 as pressuresin the challenged pub sector wereexacerbated by the weatherconditions.

The group also reported a 0.2 percent decline in volumes of carbonateddrinks, as a result of more promotionsby competitors and despite the UKlaunch of American energy drinkMountain Dew.

February 2011 25

One of the few brightspots in the Irish economyduring the past year hasbeen the food sector. BordBia recently reported a 10%increase in the value of foodexports, helped by higherprices and a weaker euro.

It is not just big foodproducers and exportersthat are part of the trendeither. Small food businesseswhich sell in local marketsare showing they, too, canthrive in a tough economicenvironment.

In For Lunch, a Cork-based pre-made sandwichdelivery company, is one ofthem. In business for 10years, the 12-employeecompany is set for a majorexpansion in 2011 afterlanding a national contractto supply sandwiches toTesco, which had previouslycarried In For Lunchproducts only in Cork.

The deal will take thebusiness from a local to anational brand. Founder andmanaging director JimKelsey said the Tesco dealalone could double thecompany’s revenue to€500,000 in just 12months.

“Our sandwiches were sosuccessful in Cork that lastyear we went nationwidewith two of our best sellers,”he said. “We are looking attrialling a number of newsandwiches in Cork with aview to going nationwide. Ifwe offer premiumsandwiches that are not tooexpensive, we could doubleour revenue.”

The challenge, Kelseysaid, is “to innovate withvolume”. In For Lunch’s topsandwiches are chicken andstuffing and egg salad - notexactly new culinaryinventions. Kelsey is testing

14 “probables” for the newdistribution deal.

But the expansion is notwithout risks for a firm thathas stuck resolutely to localdistribution and anemphasis on freshness andquality, which is harder tosustain when food has to beshipped long distances.

“I don’t believe delivering15 sandwiches to a garagein Longford is viable,” Kelseysaid. “From a profit point ofview, spending money ondistribution is wasteful. It’swasteful economically andecologically. To make a profitwe’d have to cut quality.”

Kelsey went down thatroad early in the company’shistory. In For Lunch startedout delivering individualisedlunch packs for people atwork who ordered throughan automated system.

“The production ofbepsoke sandwiches anddelivering in small volumesmade the cost higher thanwhat we could charge,” hesaid.

Although the businessmodel was flawed, itexposed the company tonew markets. Local shopsasked to stock In For Lunchsandwiches and otherbusinesses began orderingsandwich platters formeetings. The business grewthrough these local contactsto the point where it wassupplying the canteens inUCC and CIT. Again, In ForLunch couldn’t producedown to the required priceand lost the contract.

Things picked updramatically in 2007 when itwon a deal with Tesco at alocal supplier roadshow.

The recession has madecashflow a challenge, too, ascustomers take longer to payand suppliers are turning up

the pressure.“We were owed

€10,000 more at the end ofDecember than we were atthe end of November,” saidKelsey. “Our customers turnour product into cashimmediately, but it takes upto 90 days to turn it intocash for us.”

Finance is not a problemfor In For Lunch, unlike manySMEs at the moment. Kelseyis a former banker with AIBwho knows what can happento overborrowed smallbusinesses in tough times.

“I’ve always avoided thetemptation to carry debt ingood times,” he said. “It can

crucify an otherwise goodcompany with a downturn insales.”

In For Lunch has got bywith an AIB overdraft, agrant from the localenterprise board andproject-based loans fromLombard Asset Finance. Thelatter is funding machineryto automate sandwichmaking, which Kelsey saidcould triple production.

“It will enable us to bidfor larger contracts,” he said.“Previously we were onlyattractive on the basis ofquality. This will make usmore attractive on price.”

A Lucrative Deal

TGM

26 TGm

D R I N K S N E W S

Company focus efforts on big brandsJameson is the brand which is

currently dominating the mind ofAlexandre Ricard, the ceo of IrishDistillers since 2008. Of an Irishwhiskey market of 4.5 million cases, inthe last 12 months a record 3 millioncases have been sold. Jameson hadslow double digit growth in the US,where it grew 24%.

Ricard is the third generation of hisfamily to work in the company. Hisfather ran it briefly from 1968-1972,after his grandfather resigned from da-to-day activities. Ricard snr left thebusiness and Patrick, his uncle, tookover as chairman and ceo of PernodRicard until 2009.

Alexandre’s first position in PernodRicard was in auditing, with a move thefollowing year to his first real job in theIrish operation, as chief financialofficer. In 2006, he transferred toHong Kong to head Pernod Riard AsiaDuty Free. Ricard returned when hewas offered his current position.

Irish Distillers has not beenimmune to the difficulties of the pastcouple of years. There have beenredundancies and a wage freeze.

“The Irish market is “extremelycompetitive”, he says. “Pricing andpromotiion are huge just now.”

Unsurprisingly, Ricard argues thatan increase in excise duty would be “acatastrophe”, particularly for pubs. TheIrish drinks market is down about 5%this year, the on-trade, pubs andhotels, is down 14%.

“The 20% reduction in excise inDecember last year was probably oneof the best things ever to slow downsignificant erosion in the industry.From July to Decembr 2009, themarket was down 20%. For the fullyear, it was donw ‘only’ - quote,unquote - 7%.”

Along with the rest of the industry,Irish Distillers is calling for a furtherexcise cut in this week’s budget. Theindustry is also angling for a reductionin VAT on on-trade drinks from 21% tothe 13.5% that applies to food.

“The industry used to be 100,000jobs three years ago, now it is 78,000jobs”.

To drive sales, the company hasbeen investing heavil in marketing.

There are ongoing pushes behindAbsolut vodka, Powers Gold Label andWest Coast Cooler.

Wine has been “very tough” andthe company is focusing its efforts onits two big brands, Brancott Estate andJacob’s Creek.

Jameson, though, is “a lighthousebrand”. When Pernod Ricard boughtIrish Distillers in 1985, it was selling466,000 cases of whiskey. Now it isplanning a new storage andmaturation facility in Midleton, CoCork, to support its “extraordinary”growth.

With a big marketing drive underway, Ricard sees boundless possibility.In India, for example, the company istesting the appetite for Jameson inanticipation oa a further opening up ofthe Indian whiskey market.

Ricard is interested in thecompetition and would “welcome” aninternational push by William Grantbehind Tullamore Dew, which it justbought from C&C Group. “That is agreat acquisition for them and a verygood brand. I would be surprised ifWilliam Grant did not try to developTullamore Dew on a global basis.”

Ricard sits on the Pernod Ricardboard and it is believed he is beinggroomed as successor to PierrePringuet, the current man at the top.Alexandre Ricard

Irish food and drink was a majorcontributor to the economy’s strongexport performance in 2010, withexport sales expanding by 11 per centto reach €7.9 billion, according toBord Bia. The increase, amounting tojust over €800 million, was supportedby a more stable consumerenvironment, reduced exchange ratepressures, and improved relativecompetitiveness. It was also boostedby rising global prices for mostagricultural commodities.

The expansion in food and drinkexports outpaced the increase in totalmerchandise exports and is estimatedto have accounted for almost one-third

of total growth during the first ninemonths of 2010.

“The strength of the industry’sexport performance is all the morecommendable for the fact that it hasbeen achieved in what remains a highlycompetitive marketing environment”according to Dan Browne, Chairman ofBord Bia.

“All major categories recordedincreases, led by dairy, which jumpedby more than €300 million or 17 percent. Meat and livestock exports werealmost €200 million higher whilebeverage and prepared food exportsrecorded growth of €130 million and€100 million respectively.”

“The success of the industry ingrowing its penetration of ContinentalEU markets is also to be welcomed”,according to Browne, “with exports tothe mainly eurozone marketsincreasing by 14 per cent.” ContinentalEU markets now account for 34 percent of the industry’s total exports offood and drink.

The economy continues todominate consumer thinking andbehaviour throughout many keyEuropean markets, where moreconsumers believe their purchasingpower will decrease than increase overthe coming two years.

28 TGm

Aidan Cotter, Chief Executive Officer and Dan Browne, Chairman, Bord Bia at the launch ofBord Bia`s Performance and Prospects Report 2010-2011.

IRISH FOOD ANDDRINK SALES APPROACH €8BN

N E W S

The results of the fourth wave ofBord Bia’s Feeling the Pinch survey,completed in late 2010, also shows ahigh degree of uncertainty remainsamong Irish and British consumers.Indeed, the only certainty that appearsto be emerging is that significantchange is unlikely to materialise in2011 and as the search for valuecontinues, consumers are embracingthe “new normal”.

Nevertheless, looking ahead to2011 the prospects for Irish food anddrink exports remain positive, helpedby strong global demand forcommodity products and a relativelytight supply situation in a number ofkey product categories.

“In a year in which the world’spopulation will reach seven billion,growth in global demand is set tounderpin food markets well into thefuture, albeit with some volatility to beexpected”, according to Aidan Cotter,Chief Executive of Bord Bia.

He added that “the challenge forthe Irish food and drink industry is tomaintain its current momentum,particularly in the areas of costcompetitiveness, innovation andmarketing. Implementation of therecommendations of Food Harvest2020* (incorporating Bord Bia’sPathways for Growth), which reflect a

consensus industry view for supportinggrowth, will be critical to sustainingthis momentum and delivering on itsambitious targets in the decadeahead”, he said.

Industry OptimismIrish food and drink manufacturers

across all categories are moreoptimistic and showing a more positiveoutlook, according to Bord Bia’s recentfood industry survey (December2010). In total, 70 per cent ofexporters involved in the surveyviewed the prospects for their businessin 2011 as good or very good. Whenasked to compare their prospects to ayear earlier, 56 per cent rated them asbetter.

In terms of sales prospects, 64 percent of exporters had increased theirsales forecasts for 2011. When askedthe source of new business generatedover the last year some 76 per centincreased business with existingcustomers, 34 per cent won backbusiness with former customers, while18 per cent developed business withnew customers.

Employment levels have generallyheld up well, although figures vary bysector. More than one fifth ofrespondents have increased full timestaff numbers over the last year, with

a further 61 per cent maintainingemployment levels.

Respondents also highlighted anumber of key challenges facing theirbusiness including the value of theeuro against the pound; pressure onconsumer spending; changes inpurchasing behaviour; andcompetition between retailers. Thereaction by manufacturers to thesechallenges has focused on cost control,efficiencies and a review of theircustomer portfolio which has seenmore than half of respondents increasetheir expenditure on businessdevelopment over the last year. Thesemeasures may also be seen in thecontext of the difficulty cited by 75 percent of respondents of securing priceincreases even as ingredient costs rise.Critically it highlights the need forcontinuous innovation as consumersembrace the ‘new normal’ in theirsearch for value. Some 62 per cent ofrespondents listed changing consumerpurchasing behaviour with a focus onvalue for money as a key challenge forindustry.

As a consequence, Irish exportersnow appear to be in a better positionto deal with the ongoing movements inexchange rates. The results of thesurvey suggest that 82 per cent couldsustain an exchange rate with thepound at 1€ = 85p in the long runwith 62 per cent able to sustain theirbusiness if the rate was between 85pand £1.

Finally, the current strength ofglobal food markets is providing abenign backdrop for the industry,particularly for the primary sectors.The FAO food price index reached anall-time high in December at 215points, slightly higher than theprevious peak in 2008 but as much as25% higher than in December, 2009and more than double its level, at 90points, in 2000. Looking ahead, thegrowth in world food prices is expectedto remain high by historical standardswhile varying across commodities, withthe strongest growth expected incereals. Ireland’s grass-based livestockproduction systems should be wellpositioned to cope with these pricepressures (from an input perspective)and even improve relativecompetitiveness.

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February 2011 29

30 TGm

An Irish technologycompany has claimed asignificant breakthrough inthe battle agasint obesityby developing a newalternative to sugar.

Fusiion Nutraceuticalsclaims its new sweetener iscloser to sugar in taste andteture than any previoussweetener product, butwithout hte calories.

The product, which isdue to be launched nextJune, looks, feels and tasteslike sugar, but has zerocalorific content, thecompany sas.

Fusion applied for apatent for the process tomanufature the netgeneration product lasseptember and rototypedevelopment is currentlyunder way.

With concern growingabout the role played byhigh-sugar foods in thedevelopment of lifestyle-related conditions such asobesity and diabetes,manufactureres areurgently seeking toreformulate thei rproductsto meet ehe consumerdemand for healthier food.

The world sugar market

is wotth €50 billion a yearbut the growth of artificialsweeteners has beenslowed by taste limiationand other drawbacks.

Sweetener ingredientssuch as aspartame andsaccharin have faile dtomake a big dent in thepopularity of sugar whilesucralose, which isextracted directly fromsugar, was on patent to Tate& Lyne until 2006.

Since then, however, anumber of companies,amng them Fusion haveattempted to improve onsucralose by making it moreattractive to foodmanufacturers and thepublic. The Dublin-basedcompany said its varianthad the granular, crystallineappearance of sugar,thereby making it moreappealing to consumers.

The company, which iscurrently raising funds forfurther roductdevelopment, plans tosource the product from anIndian pharmaceuticalcompany, and carry outadditional production andpackaging with partners inIreland.

Kerrygold, theinternational food brandowned by the Irish DairyBoard, has reported salesahead of targets for theyear.

New figures show thatthe brand, which willcelebrate its 50th birthdayin 2012, gained marketshare in Germany in2010.Market data fromielsen’s showed thatKerrygold is currentlytrading at a record high inGermany with a 13.5 percent stake of the totalGerman butter market.

The boost in sales wasin part due to theintrodution of a newspradable product,Kerrygold Extra, which waslaunched in 2009.

Sales to the Germanmarket stood atapproximately €175million in 2010, €20million of which related tothe sales of KerrygoldExtra.

While the Irish DairyBoard does not break down

specific figures for reach ofits brands, in 2009 itsbranded offeringssgenerated sales of €475millio. This figures includessale sof Kerrygold, Dublinercheese and Pilgrim’s Choicein the UK.

Kerrygold is exported to50 countries. Germany isthe brand’s leading exportmarket, followed by theUK> Kerrygold recentlyreported its highest everweekly sales in Germanywith six million retail packs(250 grams) of Irish butterbeing sold.

The Irish Dairy Board isthe country’s main exporterof Irish dairy products.Formed in 1961, it is owedby its member co-operatives and diarycompanies and exortsapproximately 60 per centof all the dairy exports fromIreland. It also owns theKerrygold brand.

In 2009 the Irish DairyBoard had a turnove rof€1.8 billion.

An alternative to sugar

Kerrygold at record high

N E W S

32 TGm

Breakfast cereals are consumed bymost adults and children and havebeen a staple part of the Irishbreakfast for a number of decades. Asa result, the market is currently in astate of maturity, with activity andcompetition remaining fierce acrossthe board. Manufacturers aredesperate to hold onto (or expand)their market share, and have engagedin plenty of above-and below-the-linepromotion as a result.

On the whole, the breakfast cerealcategory is a very steady one, but ithas, like the entire food industry, beencriticised over the nutritional levels oftheir products. Irish society isbecoming more and more concernedwith the issue of child obesity, whichmeans that the salt, fat and sugarcontent of breakfast cereals havecome under scrutiny. On top of this,manufacturers have also had to dealwith falling levels of consumptionamong some key consumer groups.

If you couple this with the currentdownturn in the Irish economy, itwould be very easy to assume that thebreakfast cereal category wouldcurrently be facing into a period ofdecline. However, this is not the caseand, in fact, 2009 saw a substantialincrease in the value of the marketfrom the previous two years.

In 2007, the value of the breakfastcereal market stood at €109.5m. Twoyears down the road, and it has risento €114.3m, which gives it an averageannual growth of 2%. Even thoughthe consumption levels among certaingroups is off, overall it is quite healthy,with breakfast consumption havinggrown by 1.5% over the past year.

This tells us that there isn't too muchwrong with the market, and the taskof winning back those who may havelost interest in breakfast cereals isn'tas daunting as it may seem from theoutside. It appears that the cerealmanufacturers are on the right trackat the minute, with the recessionproviding opportunities for producersof breakfast products.

Consumers are trading up in thebreakfast category with the homebreakfast market in the UKperforming very well in particular.Convenience and health are keytrends for the sector, and this hasseen up to 16 billion occasions foreating breakfast cereals in the UnitedKingdom. This is something that theIrish market would do well to heed, asit could make breakfast cereals aneven more powerful commodity thanit already is.

Cereals feature in 60% of allbreakfast meals and sales rose by2.8% in volume and 5.5% in valuelast year. With 32% of all sliced breadbeing consumed in the morning astoast, this is the largest breadconsumption occasion and representsa key opportunity for bakerycompanies to increase sales.

Category research highlights ademand for healthier breakfastoptions and innovation in the sectorfocussing on health with ingredientssuch as wholegrain, vitamins, minerals

and fibre proving popular choices,presenting opportunities for bakeryand cereal manufacturers.

With Cereals proving to be so popular,it is inevitable that certain brandswould dominate over others in termsof the overall market share.

Flahavan’s is Ireland’s favouriteporridge and has a loyal Irishcustomer base with over four millionservings of Flahavan’s consumednationwide each week. The distinctiveFlahavan's taste, quality andinnovative format varieties combine tomake Flahavan's Oats the No.1 brandthat consumers can trust.

Today, consumers are taking a greaterinterest in managing their own healthand Flahavan’s through its focus oninnovation and research hasbroadened its portfolio to includeproducts that concentrate onconvenience, flavour and tastetailored to the demands and lifestylesof health-conscious Irish consumers.

Breakfast CerealsBreakfast Cereals

Flahavan’s use the finest locally-sourced Irish wholegrain oats and intheir porridge oat products and theycontain the natural nutrients, vitaminsand fibre that are naturally low in salt,sugar and saturated fat. Oats havemany health benefits; they help to fightobesity, lower cholesterol and have alow glycaemic index, which means thebody burns energy slowly, ensuringyou are less likely to be hungry beforelunchtime.

Flahavan’s porridge oats range is ahealthy, nourishing breakfast that is100% natural delivered from farm, tothe mill, to your table and tastessimply delicious.

Flahavan’s, has been operating its oatmill in Kilmacthomas, Co. Waterfordfor generations, making it one ofIreland’s longest private family- runfood businesses. As the hot oats cerealcategory leader with over 65% marketshare, Flahavan’s has delivered moregrowth to the oats category in line withconsumers’ increasing interest inporridge as a healthy breakfast cerealchoice.Odlums have been milling flour in theRepublic of Ireland for 164 years. Withover 120 different products, Odlumsproduce premium flour products inIreland for traditional home bakers,novice cooks, bakeries big & small,and retailers nationwide.

The business was originally establishedby the Odlum family in 1845 whenthey opened their first mill inPortlaoise. This formed the basis forthe present business which today millsover 173,000 tonnes of flour annually.

Odlums Porridge Oatflakes are packedwith all the goodness of 100%wholegrain oats - nothing added andnothing taken out. Research shows

that the insoluble fibre in oatmeal mayhelp to reduce cholesterol levels andimprove heart health - as part of a lowfat diet and active lifestyle. The slowrelease of energy will also keep youfeeling fuller for longer. OdlumsPorridge Oatflakes are available in500g, 1kg and 1.5kg packs.

Odlums Pinhead Porridge Oats aremade from the finest quality oats. Thisis a totally natural and unprocessedproduct, full of goodness and flavour.Rich in protein, energy and dietaryfibre, make sure it is part of your dailydiet.

The oat grain consists of the outerhusk and the inner grain, or groat. Thetraditional way of milling oats is to takethe oat, remove the outer layer and cutthe remainder into about three smallpieces. This is how Odlums PinheadOatmeal is made.

Oatflakes have long been recognisedas one of nature's super foods. OdlumsOrganic Oatflakes are unprocessedand unrefined. These oats are grown incarefully controlled conditions inaccordance with strict organicguidelines and certified by the OrganicTrust Ltd. Odlums Organic Oatflakesare 100% wholegrain offering a pure,natural and healthy breakfast option.Odlums Organic Oatflakes areavailable in 1.5kg packs.

Odlums have taken wholegrain oatsand made them even better withadded fruits, healthy seeds and grains.Odlums Harvest Fruit Porridgecombines delicious wholegrain oatswith 7 fruits and grains, includingvitamin rich sunflower seeds, juicyraisins, wholegrain rye and apricots.Odlums Fruit Porridge Feast, with35% added fruit, contains tasty redapple, sultanas and mineral-richpumpkin seeds.

Both products can also be served coldas a muesli. As oats are naturally highin Beta-Glucan (soluble fibre) they canhelp lower cholesterol and maintainheart health*. Odlums fruit porridgerange is high in fibre, low in saturatedfat and salt and contains wholegrains.Foods that are high in fibre make youfeel fuller for longer and may assistwith weight loss*. Both of theseproducts can be prepared on the hob

but can also be microwaved in just 3minutes!

Ready in just 90 seconds OdlumsQuick & Easy Microwaveable PorridgeOats is a delicious way to kickstartyour day! What's more, Odlums Quick& Easy packed with all the goodness of100% wholegrain oats. Not only arethey high in fibre but they are low insalt and saturated fat too.

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February 2011 33

34 TGm

With 44% of the market share,Kelloggs are, without a doubt, the topdogs in the Irish Breakfast CerealsMarket. Founded in 1906 by WillKeith Kellogg, the company has itsworldwide headquarters in Michigan,USA, and a current global revenue ofUS$12.6 billion.

Their European Headquarters arebased in Swords, Co. Dublin, whichserves as a major boost to the Irisheconomy to have such a largeoperation on these shores. It certainlyhas the desired impact on the market,as the company tends to be worth upto €220 million in value each year.

They have a vast number of productsin their range, with Corn Flakes, RiceKrispies and Special K being probablythe most popular of the ones thatthey currently in stock. They alsohouse cereals like All-Bran, AppleJacks, Frosted Flakes & Mueslix, aswell as selling Beverages, Cookies,Crackers, Snacks & Frozen Breakfastsamongst other items.

Considering the variety of productsthat Kelloggs have available to them,it is quite commendable thatWeetabix have managed to secure a16% share of the breakfast cerealmarket. This shows us that the UK-based company is held in goodesteem in Ireland, and can be foundin a number of households across thecountry.

It helps that there is plenty ofnutrition in their products, and withthe family-friendly packaging that isavailable, it is more than ideal for abusy breakfast table on a weekdaymorning. It can be easily dissolvedand broken up into smaller pieces,which means that (along with theaccompaniment of warm milk) it caneasily be eaten by toddlers as well asyoung children.

Nestlé employs almost 7,000 peopleacross 23 sites in the UK and Ireland.The company is structured into NestléUK Ltd (food and beverage,confectionery and Nestlé Nutrition),

Nestlé Ireland, Nestlé Purina Petcare,Nestlé Waters, Cereal Partners UK (ajoint venture with General Mills) andLactalis–Nestlé Chilled DairyCompany Ltd, a joint venture withLactalis.

Nestlé UK is an important componentof this international company. Thestory started in 1868, when HenriNestlé set up a sales office in London.In 1901, Nestlé opened its first UKfactory, and in 1905 merged with theAnglo–Swiss Condensed MilkCompany. Over the years Nestlé hasacquired other names almost asfamous as its own – notablyRowntree's – as well as gaining areputation for innovation. In 1913chocolate production began at Hayes,including the launch of the famousbrand of white chocolate Milky Bar in1937.

Nestlé breakfast cereals aremanufactured by Cereal Partners – ajoint venture between Nestlé andGeneral Mills. Cereal Partners is oneof the UK's leading cerealmanufacturers and also makes manyof the leading UK brands. You'llrecognise many of our well–knownbrands, like Shredded Wheat,Shreddies and Cheerios.

"Breakfast like a king, lunch like aprince and dine like a pauper." Likemost proverbs, this one holds more

than a grain of truth. Breakfast isarguably the most important meal ofthe day. It is a time when we 'breakthe fast' of the night, which can beanything up to 10 or 12 hours. Firstthing in the morning our bodies havelow energy reserves and breakfasthelps to replenish these and to fuel usthrough the morning. In addition tothe nutritional benefits of breakfast,evidence suggests that this importantmeal provides a number of otherbenefits to give us the best start tothe day. An amazing 72% of allbreakfasts in the UK feature ready–to–eat cereals.

Among the many breakfast cerealsavailable from Nestlé are: Cheerios;Honey Cheerios; Shredded Wheat;Clusters; Shreddies; FrostedShreddies and many moreIn this time of uncertainty, there isalways room for Independently-labelled products to make their mark.Consumer boredom starts to kick inas people start to grow tired ofspending money on the same brandover and over again. Therefore, thishas seen a rise in private label brandsin recent times, with the breakfastcereal being an especiallyadvantageous sector in this regard.

Recent figures have shown thatprivate label brands have a 13%control of the market share, whichputs it within touching distance of thepopular Weetabix. For the record,private label brands are typicallythose manufactured or provided byone company for offer under anothercompany's brand. Companies inIreland who tend to offer their own-labelled brands include Tesco, DunnesStores, Centra, Aldi and Lidl.

They offer a cheaper alternative tobrands/products that are already well-established, but may not be easilyaffordable for all consumers. Productslike Orange Juice, Coca-Cola and TeaBags are sold as private label brands,and usually enjoy some pretty decentsales at peak times, as people feelthat they will get good value fromtheir purchase.

Breakfast CerealsBreakfast Cereals

The sauce market is showing signs ofgrowth all the time, and it isresponding to increased demand forpremium, organic and more authenticproducts, which is a major reflectionof the rising interest in health, as wellas in food and cooking.

As we move forward into a difficultperiod in Ireland's economic history,the above factors will continue toinfluence the choice of consumers asthey consider whether or not to investin sauces and, if they do, what theyshould buy.

However, the category can also expectsomething of a shift in buyingpatterns across a number of differentdemographics, as consumers seekformats which will offer them morevalue for money during this toughereconomic climate.

Pasta sauces showed a growth ofapproximately 4.4% per annumduring the period of 2000-2007,which was significant at a time whenthe pasta market itself showed anaverage annual rate of 3%. It is reallyno surprise that pasta and pastasauces are on the increase, as studieshave shown that over 94% ofhouseholds buy Italian food, whichmakes it one of the country's best-loved cuisines.

As consumers enjoy eating out andtravelling the world, they areincreasingly being exposed to newcuisines and flavours that they thenseek to re-create in their own homes.Consumers are always looking fornew, interesting flavours and textures,which allows them to have greatercontrol over what they eat, while atthe same time still offering a quickand easy option, which Orientalcuisine, particularly stir-fry cookingmethods, provides.

For instance, according to BlueDragon, consumers purchase ambientOriental sauces on average four timesa year, which highlights the potentialto increase frequency of purchase,which increases value for retailers and

manufacturers alike.

As retail analyst Mintel states: “Thecooking sauces market has gone fromstrength to strength, changing withthe times to remain relevant toconsumer needs”.

New products using authentic recipesand ingredients appeal to value-conscious consumers who are seekingconvenience, and the taste adventuredelivered by restaurant-quality food,through entertaining at home at afraction of the price.

There are a number of brands in thismarket, who compete quite well formarket share in this category.The leading brand in the pasta saucemarket at the moment is Dolmio fromMars, who currently hold a 65% shareof this particular market. They arealso showing a growth of about 7%,which is helping to fuel growth in thecategory itself. A lot of their successcan be attributed to the strength oftheir somewhat extensive portfolio,which is able to provide consumerswith a wide range of nutritious, tastyand easy-to-prepare pasta sauces.

While they do supply a wide numberof products though, their Bolognesesauces range is at the core of theDolmio brand. This has been a high-performer for them for quite a while,and they no doubt benefited from thefact that the entire Dolmio Bologneserange was re-launched as recently asthe autumn of 2007, and nowcontains only good, honest, kitchencupboard ingredients with absolutelyno artificial colours, flavours orpreservatives.

The Italian sauce market has beendoing extremely well in the past fewyears, and the premium segment of ithas grown significantly during thisperiod. Dolmio has responded to thisneed from consumers and hasidentified a number of changingtrends that have occurred byintroducing a range of premium,ready-made pasta sauces called 'TasteOf Italy'. This 'Taste Of Italy' rangeconsists of five very different pastasauces that help to capture theflavour of five Italian regions(Calabria, Tuscany, Sorrento, Romeand Sicily).

Dolmio also offer a Dolmio Expressrange, which consists of a wide choiceof pasta and, more importantly in thissection, pasta sauces. It offers acomplete meal solution in a matter ofminutes, which is quite popular withconsumers as it provides plenty ofconvenience for the everydayconsumer.

Dolmio also provides pasta sauces forkids under their My Dolmio selection,which once again offers a lot ofconvenience to customers, but it isimportant from a health point of view,as parents are always looking forsomething that will gives theirchildren plenty of nutrition.

The entire Dolmio brand continues tobe supported with heavyweight TVand other media, using the highlysuccessful puppet campaign whichhas become a firmly establishedfavourite with Irish families.

SaucesSauces

36 TGm

TGM

Roma, which was founded in 1958,has a large portfolio including pasta,tomatoes, olive oils, pasta sauces,rice, passata’s, puree and antipastos.The brand’s focus on providing thesequality, affordable Italian foodingredients and meal solutions hasbeen central to its success to date.

This success is most evident in thedried pasta category where Romaenjoys a leading market share of36%, which is 34% more than itsleading branded competitor. Newproducts such as Penne Lisce,Tortiglionil, Linguine and a newWholewheat range kept Roma asIreland’s Favourite Italian food brand.

The most versatile of ingredients formany a Mediterranean recipe, Roma’srange of quality canned tomatoes isunrivalled. Tomatoes are picked inlate summer and their freshness issealed into tins that you see onshelves all year round.

Roma’s pasta sauce range has alsoenjoyed great success since its launchin 2006 and appeals directly toconsumers who want a completepasta meal solution, but don’t havethe time. The sauces are made withthe finest Italian tomatoes, herbs andvegetables in order to deliver the truetaste of Italy direct to Irish consumers.The new look, new taste sauces areavailable in 500g and 700g family

size jars and the range consists ofOriginal, Light Chunky, Garlic &Onion, and Spicy.

Irish consumers have a big interest inauthentic food offerings, as they feelthat they will help them to derive thegreatest satisfaction possible from aparticular product. This is why Buitonihas proven to be a rather popularchoice with many people in Ireland, asthey offer top-of-the-range pasta andsauces in convenient little packages.

As consumers continue in their searchfor convenience, nutrition and quality,the Buitoni fresh sauce range isstarted to expand, which means thatshoppers are prepared to pay morefor these fresh products.

They currently enjoy a good share ofthe fresh sauces market, with ageneral percentage of around 57% or58%, considered to be the norm overthe past couple of years. Theirsupport of the point of purchase hashelped to accelerate their growth, andthey have shown a major focus on theareas of trial and education in theirefforts in this regard.

In total, Buitoni offer five fresh sauceproducts, with the most popular beingPesto Genovese. They are available infour different formats, namely family,kids, for one, and for 2-3 persons.

Uncle Ben’s sauces maintain theirposition as the number one brandleader in the ethnic sauce categoryholding 22% market share whichcovers Indian, Mexican and Orientalcuisines. Uncle Ben’s sauces offer awide range of meals from around theworld and contain no artificialflavours, colours, preservatives ofMSG.The latest addition to the Uncle Ben’ssauce family is the ‘Stir Fry’ rangewhich provides consumers with highquality stir fry sauces that can beprepared with minimal effort, meetingconsumers needs for speed andconvenience without compromising ontaste. There are five varieties tochoose from across the Oriental andThai cuisines.

Barilla pasta sauces are authenticItalian sauces with a rich homemadeflavour. Fresh diced tomatoes andolive oil provide the same richnessand thickness found in homemadesauces. The freshest ingredients–likemushrooms, garlic, sweet peppers,olives, and basil–to are used to createan authentic, premium collection ofItalian pasta sauces. Traditional RedSauces bring the flavours of Italy tothe range of sauces which includeGarden Vegetable; Italian Baking;Marinara’ Mushroom and Garlic’Roasted garlic’ Sweet Pepper; Tomatoand Basil and Three Cheese Sauce.

February 2011 37

The Knorr Ragu offers a choice ofseven flavours. All Knorr Ragu saucesare free from artificial flavours,preservatives and artificial colours.Thick and chunky the are veryversatile and consumable in a varietyof ways.

The Knorr Curries range from KnorrMild Curry to Knorr Hot Curry, as wellas a Knorr Fruity Curry cater for alltastes. Equally, Knorr Chicken Tonightrange of cook-in sauces also comes ina number of interesting varieties, suchas Sweet & Sour and Spanish andcontain no artificial flavours or

colours, and only quality herbs, spicesand vegetables.

Also quite popular in the saucemarket is Blue Dragon, which is anauthentic Japanese brand that offersa very unique alternative to a morerecognisable form of sauce. Thoughsome of the range isn't quite asconvenient as it perhaps could be, assome selections come in big jarswhich can be quite awkward, as wellas being susceptible to damage.They are part of the ambient Orientalfood category which, according to thebrand itself, is primarily comprised ofChinese and Thai cuisine products,while Japanese cuisine is alsoincreasing in popularity. Blue Dragonhave been quite innovative as wellthough, as they are able to recognisethe importance of continuing toimprove and extend their Orientalofferings to reflect the evolving tastesof consumers.

December of 2009 saw an exampleof this, as Blue Dragon became thefirst Oriental food brand to pioneerthe emerging consumer trend forJapanese cuisine by launching anauthentic tasting range to the

masses. Their aim is to attract newconsumers into the ambient Orientalfood category, while at the same timemaintaining their authenticity.

This is very important for the BlueDragon brand, but also for the saucemarket, as they have introduced anumber of new sauces products ontothe market. Added to their alreadysubstantial sauce selection is threeyaki sauce variants and a katsu currysauce jar, which should ensure thatthe Blue Dragon sauce range does notsuffer from consumer boredom in thenear future.Blue Dragon has added morevibrance to its established orientalstir-fry portfolio by revamping itspackaging design to increase tasteappeal to engage new and existingconsumers, as well as the addition oftwo new variants to the standard stir-fry sachet range: Blue Dragon BlueDragon Thai Basil & Lemongrass. Twofurther additions to its premium stirfry sachet range include Blue DragonSweet & Sour with Coriander andBlue Dragon Sweet Chilli & KaffirLime, to reflect increasing consumerdemand.

SaucesSauces

38 TGm

40 TGm

The frozen pizza market is one thathas 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 ratherthan going 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 werediscovered:

“The pizza market is showing stronggrowth, of 6% over the last year,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 inthe past, 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 havealso experienced good growth in thepast.

However, since 2008, as the fullextent of the economic decline beganto take effect, certain categorieswithin chilled packaged foodsexperienced a slow-down in line withthe general tightening of consumerdiscretionary spend. Conveniencedoes remain important to a lot of Irishconsumers, but it was alwaysinevitable that their would be areduction in spend and the greaterneed for value would impact on thechoices that consumers make.

Some would probably expect thatpizza would suffer the same problems,yet pizzas have shown remarkableresilience during this sticky period,and are currently performing at a

pretty decent level considering thechallenges they (and other markets)are presently facing. The ease-of-useand self-contained nature helps tomake pizzas the ultimate convenientproduct, while it also remains popularwith cash-strapped consumers, whocan see the potential value that pizzasoffer as a meal option from a moneypoint of view.

While value is clearly very importantin enabling manufacturers to sell theirbrands, probably the biggest factorbehind frozen pizzas' current strongposition is the increase in at-homedining occasions, as this has createdfar bigger scope for more indulgentpizza products as well as the morestandard ones.

With staying in effectively becomingthe new going out, the pizza andbottle of wine combination isbecoming ever more common in Irish

households. 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 taken inproduct development in pizza in thelast couple of years, which hasresulted in a number of consumerneeds being answered, ranging fromhealth to premium ingredients anddifferent recipes.

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 fortheir position.

PizzasPizzas

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Owned by British company NorthernFoods, the Goodfella's brand was firstlaunched onto the Irish market in1993. Now, 17 years down the line,Goodfella's has firmly establishedthemselves as the number one pizzabrand 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,it appears to be working.

What helps them in being sosuccessful 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 presentlyemploy a total of 508 employees.Goodfella’s launched the NewUltimate Takeaway Pizza inNovember. Extensive research wascarried out to ensure that Goodfella’sdeliver the perfect authentic takeawaypizza. 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 theirartillery.

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 familyowned shops.

They have managed to gain a marketshare of around 15% in the past yearor two, and it is expected to stay atthis general level for the next while atleast.

Currently ranked third in the Irish

frozen pizza market, Dr. OetkerRistorante Pizzas are quick and easyto prepare, and offer plenty ofconvenience for an expectant andeager Irish consumer. They currentlyhave a strong presence in a numberof different 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 haveto wait too long for their taste buds tobe satisfied.

Dr. Oetker's Bistro range of authenticbaguettes is also quite popular withIrish consumers and it is just as easyto prepare as well. With a nicecrunchy outside lair and a soft insidebase with delicious toppings, BistroBaguettes are extremely convenientand are perfect for a family occasion,when a multitude of people can sitdown and sample the unique tastethat Dr. Oetker has to offer.

February 2011 41

42 TGm

The Meal Kit market is one that hasseemingly increased in popularityover the past few years, with anumber of brands in the categorybecoming known to a whole host ofshoppers right across the country.Meal Kits are ideal as they offerconvenience, ease of use, value formoney and excellent taste.

As such, meal kits aregenerally split up intotwo different types,namely tacos andwraps. In simpleterms, a taco is atraditional Mexicandish composed of acorn or wheat tortilla,which can either befolded or rolled arounda filling. Theadvantage that can bederived from a taco(and indeed from mealkits in general) is thatit can be made with avariety of fillings,including beef,chicken, seafood,vegetables and cheese,which allows for greatversatility and variety.A taco is generallyeaten without utensils,and is known to beaccompanied bygarnishes such assalsa, avocado orguacamole, cilantro,tomatoes, onions andlettuces.

Wraps, on the otherhand, are a sort ofsandwich made of asoft flatbread rolledaround a filling. Theusual flatbreads inwraps are wheat-flourtortillas, lavash, orpita, with the fillingnormally consisting ofcold sliced meat,poultry, or fishaccompanied byshredded lettuce,diced tomato or picode gallo, guacamole,

sautéed mushrooms, bacon grilledonions, cheese and also a sauce, suchas ranch or honey mustard dressing.

Wraps can be easily distinguishedfrom other rolled sandwiches, such asburritos and kebabs, by being filledwith cold ingredients. This is both a

unique and lucrative market, and anybrand or manufacturer that managesto forge a strong position in thecategory has the potential to grab astranglehold on it heading into thefuture.

Discovery Foods are a major player inthe meal kits market, and theyintroduced a hot wraps concept in2010, which they believe will end upbeing a profitable option for quickservice restaurants, and also bakeryfast food sectors. Their Hot Wrapsvariety is currently available in sixinternational recipes including ahealthy eating option.

The wraps are made using DiscoverySanta Maria tortillas and flavourings.The brand feels that the hot wrapconcept will be able to stealcustomers away from the establishedpanini sector, due to the fact thatwraps are easy to prepare and readyto eat in less than five minutes.

Discovery have also calculated that,with up to 99% of paninis beingfreshly made, just one panini breadwill cost a caterer at least twice theprice of a tortilla wrap. As part of thelaunch, it was decided that Discoveryhot wraps would come with acompetitive consumer price point thatranges from €2.99 to €3.89.

Their 10” Discovery tortilla wrap canalso be bought with Discoverybranded parchment wrap andDiscovery POS including sell sheets,leaflets, table sands and instructions.Discovery also offers a number ofseasonings and sauces, encompassingthe likes of Salsa, Guacamole, CheeseSauce, Sliced Jalapenos and FajitaSeasoning Mix.

The Discovery brand also providesMexican Salsa, which is acombination of tomatoes, onions andpeppers, and can complete any kindof Mexican meal. This Mexican Salsacan be stored for up to 14 days onceopened, which is something thatconsumers will find extremelyconvenient.

Ready MealsReady Meals

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The best-selling seasoning under theDiscovery cannon is Fajita SeasoningMix, which offers a blend of 14 herbs,spices and flavourings, proving to be amust for any chef who wants to createthe authentic smoky flavour of Tex-Mex wood-smoked fajitas. Thisparticular mix comes in handy 650gscrew-top jars as well.

It should also be noted just howpopular their sliced green and slicedjalapenos are. They are harvested inMexico (processed in one of thecountry’s leading canners), and areavailable in two case sizes accordingto a retailer’s requirements. If abusiness is in need of large quantities,then the 2.8kg can is the best choice,whereas 500g re-sealable plastic jarsare more suitable for smaller users.

Finally, produced in the exact sameindustry-leading factory as Discovery’stortilla chips, the brand’s taco shells

are made with naturally gluten-freecorn and palm oil, which contributesquite nicely to future sustainability.Old El Paso is another popular playerin meal kits, as a brand that isregularly applied to a range ofMexican-style foods. Includedamongst their products are dinnerkits, tacos and tortillas, sauces,condiments, rice and refried beans.

Their products are marketed rightacross the globe, and the brand itselfis owned by the multi-million dollarGeneral Mills Company. Pillsbury isthe brand name used by General Millsin this area, and they acquired Old ElPaso in 1995, when its then-parentcompany, Grand Metropolitan,bought Pet, Inc., who had taken overthe brand itself in 1968 from theMountain Pass Canning Company.

Though there have been plenty ofchanges made to the product sincethis acquisition all of 16 years ago,General Mills have nonetheless, ineffect, repeated the style of theirproduct line (in simple terms, Old ElPaso is a recipe kit with dryingredients that the consumer finisheswith their choice of fresh ingredients),evidenced in the production of aChinese Food range called WanchaiFerry.

The name of the Old El Paso brand isa direct reference to the city of El Pasoin Texas, and this particular name hasserved them well in the past. Theyoffer a very extensive meal kitsselection in both the UK & Ireland,including the likes of Extra Mild SuperTasty Fajitas, Original Smoky BBQFajita Dinner Kit, Original EnchiladaDinner Kit, Crispy Chicken Fajita Kit,Big Family Size Fajita Kit, Beef & BeanChilli Burrito Kit, Original Nachos

Dinner Kit, Quesadilla Dinner Kit,Roasted Tomato & Pepper FajitaDinner Kit, Stand ‘n’ Stuff Taco Kit andOriginal Taco Kit.

The Crispy Chicken Fajita Kit createsa deliciously crispy, succulent strip ofchicken, which is oven-baked tocrunchy perfection with a little helpfrom the brand’s Shaker Bag. Tocreate a fabulously crispy fajita,consumers should grab a warmtortilla, pile on the crispy chickenstrips and top it off with cool sourcream, juicy tomatoes, crunchylettuce, and some Old El Paso Thick n’Chunky Salsa.

Original Nachos Dinner Kits are alsopopular, as many people find it hardto resist the taste that nachos bring.The Old El Paso Nachos Dinner Kit

provides a mouth-watering, colourfullayer of Nachips, oozed with meltingcheese, and topped with tasty tomatoand beans from the brand itself. It hasalso been known to be a satisfyingmeal if the likes of hot jalapenopeppers, cool sour cream, or chunkyguacamole are added to it.

In addition, there is also the standardOriginal Taco Kit, which offers theindistinguishable crunch of their well-known taco shells, as well as themouth-watering explosion of hot andjuicy seasoned beef, grated cheese,cool crisp lettuce, and tangy Old ElPaso Thick ‘n’ Chunky Salsa.

Dolmio from Mars are mainly knownas a pasta sauce brand, and theycurrently enjoy a market share ofaround 65% in that category, wherethey are continuing to grow at 7%,which has helped to fuel growth in thecategory overall. Dolmio owes its

success to the strength of theirextensive portfolio, which hasconstantly provided consumers with awide range of nutritious, tasty andeasy-to-prepare pasta sauces.

However, their portfolio also extendsinto the meal kits market, with theDolmio Lasagne meal kits being quitepopular with a lot of people, whetherthey are Dolmio lovers, or simply mealkit enthusiasts. Dolmio Lasagne mealkits have helped to drive growth in thelasagne category quite successfullyand, as a result, Dolmio now occupies75% of the lasagne ambient market.Over time, Dolmio should also makean impact in the meal kit category,which will also be of the benefit to thesector itself.

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44 TGm

It would be quite easy to make theassumption that all the sectors in theIrish market have struggled since thecollapse of the Celtic Tiger, but thisisn't quite the case. Sure, there havebeen plenty of markets that havestruggled during this period, and haveseen a significant decrease in sales asa result.

However, there are certain marketsthat have held firm during this timeand, some would say, have actuallybenefited because of the downturn.Cheese is one of these markets andhas, like a lot of categories in thedairy sector, manage to sustain salesfor both this year and last year.

The reason that dairy products, likemilk and cheese, have continued toperform well is because of thepreference that consumers currentlyhave for staying in. This has helped tosustain retail sales, and it means that

cheese (as well as butter) did notsuffer a fall-off in 2009, and hasn'tdone so this year either.

There are a number of different typesof cheese of course, but by far themost popular one is cheddar cheese,which makes up 80% of the cheesemarket in Ireland. Cheddar cheese is ahighly nutritious food with a widerange of critical proteins, essentialamino acids, a great source of calciumand other important minerals andvitamins.

However, it has come it for criticism insome quarters, with some medicalprofessionals advising their patientsthat they should reduce theirconsumption of cheddar as it containshigh levels of saturated fats that canaffect cholesterol levels in the bloodstream and consequently increase therisk of cardiac diseases.

In total, the overall cheese market(which includes the likes of swiss,grated, as well as cheddar cheese) isvalued at €180m, with the specialitycheese market being valued at€26.5m. Following recent researchundertaken by Bord Bia, it has beenrevealed that an additional 45,000households are purchasing specialitycheese.

Speciality cheese tend to come fromplaces like Mexico, the Caribbean,India and a number of Middle Easterncompanies. Consumers tend to go forspecialist cheese products like this, asthey feel that they will be able toprovide an exotic flavour that theywon't get from ordinary cheesebrands.

The frequency of purchasing forcheese is also on the increase, albeitfrom a relatively low level to 8.7 timesper year. In addition, there is growthin private label, while the farmhousecheese market is also valued atapproximately €3m, which representsa rise of some 3.4%.

The imports of cheese from outsideIreland has also shown growth, and isnow 500 tonnes higher than it waslast year. Revenue in this market hasalso been strong in the past few years,with total revenues at the end of2008 being at €155.6m, whichrepresents an annual growth of 2.8%for the period spanning 2004-2008.

It wasn't all good news it should bepointed out though, as volume andvalue in the cheese market did fallslightly, but this isn't anything forconsumers to be overly concernedabout, as the cheese market is inreasonably rude health at themoment.Despite being in a category that hasa number of strong brands forconsumers to choose from, Charlevilleis still very much the number onebrand in the cheese market. It iscurrently valued at €22.5m, and hasa year-on-year growth of 5%. It is afavourite for all the family, and offersconsumers a wide variety.

CheeseCheese

February 2011 45

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For those who love block cheese,there are a number of options fromLight to Extra Mature to suit everytaste. For extra convenience,Charleville possesses an extendedrange of grated and sliced options.The brand also offers a range ofCheese Spreads, available in Ham,Onion and Cheddar.

Charleville also continues to be anindustry leader in terms of innovation.This was shown in their recent moveinto ziplock packaging, which formedpart of a relaunch campaign last year.This new ziplock format, which can befound across Charleville’s entire blockrange, and provides added freshnessfor longer and helps to reduceunwanted wastage, a majorconvenience for families.The individually wrapped slicesmarket is a very convenient part ofthe cheese sector for consumers, asthe products are designed to be verysimple for people to use. Thisparticular side of the market isdominated by one brand, EasiSingles.

Based in Cahirciveen, Co. Kerry, theyare valued at €6.5m and have shownextraordinary growth levels, withsome estimates saying that the brandhas grown by 27%. This is an increaseof €500,000 from the previous year,when growth was at 12%.

EasiSingles is quite a good

accompaniment for the barbecueseason, and is popular for itsmeltability and taste, making it anessential ingredient at barbecue time.A key part of the growth that thebrand has experienced over thecouple of years or so has beenrealised through new and excitingNPD offerings,

EasiSingles has launched successfullyinto the grated cheese category,providing the same EasiSingles meltthat is perfect for pasta or as a pizzatopping. The brand also plays a bigpart in the block category, with itsChunky Block offering.Just behind Charleville as the numbertwo brand in the cheese market isLowLow Cheese, which is showing agrowth of 13% per annum. Constantlymodernising and expanding its range,LowLow offers block, sliced andgrated cheese in handy, modernformats.

The recloseable packs address a keyconsumer need in the current climateby sealing in freshness and reducingwaste. LowLow also operates in theready to eat cheese category withproduct offerings such as cheesetriangles, cheese spreads andindividually wrapped cheese slices,which melt perfectly in a grilledcheese toastie or on a burger.

Still a relatively young brand (it was

first introduced in the late 90s), theaward-winning Dubliner cheese is amature one that has a distinctiveflavour and a natural hint ofsweetness. Their taste crumblytexture has proven to be popular, andis one of the best-loved Irish cheeses,with the successful annual growth ofthe brand meaning that there isplenty of scope to build thisreputation further.

Dubliner is available in Original, Red,Vintage and Light Probiotic variants,and consumers can choose fromeither block or sliced formats tosatisfy all palate profiles. NewDubliner Mild was recently introducedon the market, and is suitable for allthe family.Philadelphia has proven to be a verypopular choice with Irish consumers,and is the outstanding leader in thesoft white cheese market. It has avalue share of 85%, and is continuallystriving to bring retailers the bestpossible product offering to thechilled shelf.They have introduced a new designand pack format across its brand,which is something of a departurefrom the existing rectangular shape toa new oval pack. It is hoped that, inthe long-term, this new design willbring an impactful and modern lookto Philadelphia, meaning the brandwill look harder in-store throughincreased impact on-shelf.

46 TGm

In the Irish economy, there cansometimes be a notion that the bigmarkets are the only ones that aresignificant, and all the time andenergy should be put into makingthem even stronger, which means thatthe smaller ones will fall by thewayside.

Though this would probably only bethe thinking of a minority of thepeople out there, anyone who doesindeed conform to this opinion wouldcertainly be making a mistake, asthere are a number of smallermarkets out there that have plenty tooffer in the grand scheme of things.

One such market that is a goodexample of this is the honey market.Though it is a small market, honey isnonetheless an important one as theIrish imports of honey have seen an

increase and in recent months andyears, with developing countriesaccounting for a significant share ofIrish imports. This indicates that theIrish market, and specifically in thiscase the honey market, can offersome opportunities for developingcountry producers. It is important formanufacturers, distributors andpoliticians alike that these factors areconsidered, and that the smallermarkets (which offer a welcome nicheto consumers) are afforded theattention that they deserve.

Spurred by a growing interest inhealthy eating, sales of honey startedto show increases of 10 per cent insales per annum around 2005/2006,with their retail value at that pointbeing somewhere in the region of€6.5 million. Though this increase hasfallen a bit since then, the sales of

honey are nevertheless still goingstrong, and it is a market that shouldcontinue to perform pretty well.

A lot of this growth in honey sales canlargely be attributed to the presenceof younger buyers, who are looking atways to incorporate honey into theircooking and baking in place of sugar.However, in terms of honeyconsumption, Ireland are still a goodbit behind countries like Germany.The general level of consumption inIreland has been less than one poundper capita per annum, whereas inGermany it is slightly over 3.3 poundsper capita per annum.

This is something that manufacturersin this market could work on because,in an ideal world, it would be great tosee Ireland competing with the verybest European economies.

HoneyHoney

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The honey market is in good healththough, and they have a couple ofwell-known brands to thank for this.

Boyne Valley Honey has beenavailable to Irish consumers for closeto 50 years, and it is currently themost popular brand of honey inIreland. Indeed, it has been the mostsought-after honey brand for quite anumber of years, and it seems like it isgoing to continue to grow and grow aswe move into the future. Boyne ValleyHoney is 100% pure and natural, andit is available in a wide range offormats, from the 250g kids squeezyright up to the 907g jar.

The 250g squeezy range has beendeveloped especially with youngconsumers in mind, and it has astrong promotional element to it, withthe 'Bizzy Bee' character beingfeatured prominently in theinnnovations and advertisements thataccompany it.

In a bid to keep their production linefresh, Boyne Valley are constantlylooking for new launches that willentice their current customers, as wellas attracting new ones. For instance,last year saw the launch of BoyneValley Manuka 10+ Honey, which hasbeen made available in 350g jars.Manuka honey is one of the keydrivers of growth in the honeycategory, as consumers are able torecognise the various health benefitsthat it provides. It is no surprise thenthat Boyne Valley is pushing this newpromotion so much, and it would beno surprise if their Manuka rangeproved to be just as popular as theirregular range in the future.

They have also launched a range ofvarietal honeys in 350g squeezycontainers including Organic Acacia,Wildflower, Orange Blossom andEucalyptus. Boyne Valley have theiroffices in Drogheda, Co. Louth, wherethe Boyne Valley Group also houseDon Carlos Olive Oil, Killeen RefuseSacks and Greenlea Wines.

They have, in the past few years, has amarket share of between 50 and60%, which makes them the mostdominant brand in the honey market,as well as the most popular.Mileeven is a strong player in thehoney market, as well as a number ofother categories, as they currentlysupply speciality honey, honeyproducts, preserves, cakes andChristmas products to Irish shoppingshelves. They are a family-runbusiness, and the owners had keptbees for a number of years as ahobby!

Then, when the opportunity arose toincrease the number of hives, theydecided that it would be a good ideato share the surplus Irish honey andthe customers kept coming back formore. Mileeven are unique in thatthey are appealing to those who liketo indulge themselves, as well as themore health-conscious consumersamong us. These delicious productsnow take pride of place on shelvesacross the country.

Mileeven has had a number ofsuccessful launches, and they werethe first to produce an Irish-madeOrganic range of preserves, a range ofhoney spreads and first to packManuka Honey in Ireland. The brandstrives to educate its public as well,and they are currently working onvarious local community activities,which will help to educate childrenabout where honey comes from andthe important role bees play in theeco-system.

Their products are mostly soldthrough delicatessens andindependent specialist retailers, and asmall percentage is distributedthrough multiples and the foodservicesector.

Capilano Honey is the current marketleader in Australia, but it is alsowidely available in Ireland as well.They pack premium quality honey,which is produced by Australianbeekeepers. Their company heritagespans over 55 years, and generations

of Australians have grown up with ourtrusted brand and quality honey.

Capilano Honey founded back in1953 by J.c. (Tim) Smith MBE and hisbrother H.A. (Bert) Smith, whostarted the business by packing andselling their brand of honey to grocerystores around the areas of Brisbaneand Queensland. Indeed, the name'Capilano' has a nostalgic connection.It means 'rushing water’ in thelanguage of the native AmericanIndian tribe, the Squamish, who werethe occupants of the Capilano districtnear Vancouver in Canada.

It was in this area that Tim Smith methis wife, Jill, while he was stationed inCanada as a RAAF flying instructor inWorld War II. The rest, as they say, ishistory, as Capilano are now one ofthe largest honey packers in the worldwith a capacity to process and packover 45,000 tonnes of honey peryear.

Capilano promotions have also provento be quite solid, as consumers havehad their Capilano experience madeeven more enjoyable by the presenceof their go anywhere, no mess, nowaste Snap 'n Squeeze honey sachets.They can be taken to work, school oron a picnic, which makes them a reallyconvenient product to use. All youhave to do is snap it, and then you cansqueeze it on fruit salad, in yourcoffee or tea or in your favouriterecipe as a substitute for sugar. Snap'n Squeeze is a 7g portion of honeythat is easy to use and is available inselected stores.

February 2011 47

48 TGm

The preserves and spreads markethas increased quite steadily in theIrish market since the year 2000, asIrish consumers have found newoccasions that they can use themduring. Included in the list ofpreserves and spreads available toIrish consumers at present arechocolate, nut and yeast-basedspreads, as well as honey, which areall quite popular and familiar with thegeneral public in this country.

However, fruit jams and marmaladesare also amongst what could beconsidered as preserves and spreads,and they are proving to be just asformidable as the other members ofthe market. The reason they arecurrently doing quite well is due to thefact that low/no-sugar and all naturalvariants have grown in tandem withincreased interest in health andweight management, and the marketfor indulgent jams and spreads hascontinued to perform beyondexpectations, as consumers can seewhat they can offer during treatoccasions.

Indeed, all the members of themarket have benefited from thepremiumisation trend, with NPDcentring on such value-addingpropositions as 'more', 'rich', and'luxury' which has in turn, helped todrive growth. Coarse cut marmaladeand strawberry jams, specially, remainfavourites in Ireland, as low-sugar,high-fruit content varieties arestarting to grow in popularity.

However, there are certain problemsthat are associated with the jammarket, which the variousmanufacturers/brands will need towork on in the coming months andyears. One such problem has come upin a number of studies that have beenundertaken, and this is to do with thedemand for diabetic products, whichappears to be on the rise at themoment.

There are those that feel that thisshows that the jam-buying market isan ageing one and, while it is clearly

important that those who suffer fromdiabetes are catered to in the bestway possible, it is also important thatmanufacturers look at how they canmake jam more appealing to ayounger audience as well. If theymanage to do this, then the jammarket will continue to grow evenmore, which will put it in a verycomfortable position for the yearsahead.

It is estimated that the overallpreserves and spreads market isworth €38.3 million, with marmaladeand jam proving to be by far the mostsignificant sectors, with 2007 figuresshowing that they accounted for

values of €14.2 million and €12.9million. There are, in turn, a numberof brands in the jam market that arehelping them to reach these figures.Bonne Maman is noted as thepremium jam brand in France, but italso has a full distribution throughoutIreland, and has turned into anextremely popular choice with manyjam lovers in this country. It hasrecorded an impressive 25% growthin the past year, which means that it isnow of the most recognised brands inthe Irish jam market. Indeed, formany years Bonne Maman has beenthe leader in this market with acontinuing strategy helping to sustaingrowing consumer demand.

JamJam

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February 2011 49

According to manufacturers, BonneMaman is the only jam brand thattruly stands out in-store, and this canbe put down to its unique design and'home-made' image, which means thatit is very attractive to consumers, whoare automatically attracted to theproduct as a result. Irish consumersare becoming more and moreinterested in premium offerings injam, with an emphasis on qualitystarting to be very apparent. BonneMaman jam boasts a minimum of50% whole fruit per 100g of jamproduct.

There is plenty of variety to bederived from Bonne Maman as well,as it is available in strawberry,apricot, blackcurrant, blackberry,raspberry, peach, damson plum,berries and cherries, wild blueberry,orange marmalade and mandarinmarmalade flavour. On top of this,Bonne Maman Jams are a 100%natural product and are free frompreservatives, flavouring andcolouring. Bonne Maman's successfrom this year is expected to continuewell into 2011, thanks to aheavyweight national promotionalcampaign, which has gathered wingsin the last few months.

Though Bonne Maman has had astrong role in the jam market in morerecent years, they are certainly notthe only brand that has been makingwaves in this country. In fact, ChiversJams has been a favourite with manyIrish consumers, dating back to whenit was first established, way back in1873. Right from the word go theyhave had a strong popularity with thecustomers, and they have done plentyof business for the Irish economy,operating from their headquarters inCoolock, North Dublin.

Their products are made with noartificial colours, flavours orpreservatives. They use only productssourced in Ireland in the making oftheir products, and they offer a widevariety of flavours to the generalpublic. Amongst the varieties thatthey offer are Bramble (Blackberry)

Jelly, Raspberry Jam and Fine CutOrange Marmalade.

Fine Cut tends to be one of the morefavoured jam flavours with Irishconsumers, and Chivers are certainlyno different. Their fine cut range ismade with the freshest of ingredients,which are oranges, glucose-fructosesyrup, sugar, pectin, acidity regulator,sodium citrate, gelling agent and citricacid. This particular product isavailable 16 oz./454g jars, which arevery convenient sizes for buyers, interms of storage.

As well as jam, Chivers are alsosynonymous with jelly, and theycurrently have a share of 21% and50% in the preserves and jellymarkets respectively.

A recent important innovation fromChivers saw them re-launch theirConserve range, which contains 40%more fruit than standard jams andboasts a soft, spreadable texture thatwill no doubt prove to be a big hitwith jam lovers.

Fruitfield, who operate under thename of Jacobs Fruitfield Food Groupon the Blessington Road in the Dublindistrict of Tallaght, have a strongpresence in both the jam andmarmalade sectors. Of course, in

many ways, marmalade can also beconsidered to be a jam itself, but theydo belong to two different sub-categories within the preservesmarket. Fruitfield are strong in bothareas, with their marmalade selectionproving to be the most popular in thatsector with a 50% market share.

In terms of marmalade, they offer awide selection of ranges through theirOld Time Irish Marmalade divisionsuch as the Seville Orange Flavourand Old Time Coarse Cut, which is thesingle biggest-selling marmalade inIreland, and they also offer Fine Cutand No Peel varieties as well. Theirjam selection is also quite formidable,as they offer a range of traditionaljams, which include Strawberry,Raspberry and Blackcurrant Variants.All three of these Fruitfield jamofferings come in 454g/16 oz. jars,which help to meet the demands ofconsumers, who want jam jars thatare of a reasonable size, and are quiteeasy to open, which is something thatFruitfield ably provides. They haveshown plenty of creativity andoriginality in terms of promotions andinnovations in the past, andconsumers should expect that this willcontinue, so that they can keep upwith the ever-expanding competitorsthat they face in this market.

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BreadBread

It is estimated that there issomewhere in the region of 300bakery enterprises in Ireland atpresent. 280 of these can beclassified as craft bakeries, while 20of them are considered to be plantbakeries. There are also a further 50in-store bakeries and an estimated1,500 in-store bake-off outlets. Thisshows just how strong a sectorbakery is, and is expected to keepgrowing in the coming years.

While on the surface bakery wouldappear to run along similar lines toother sectors in the food industry, itdoes, in fact, have a number ofcharacteristics that set it apart fromsimilar members of the industry.Firstly, it is a traditional industry thatover the decades has experiencedsignificant rationalisation with a largenumber of closures and thedisappearance of the small localbakery network. At the same time, theindustry has fragmented into anumber of business types each withvery different cultures, objectives anddevelopment challenges.

It is not an export focused sector anddoes not lend itself easily to exportsdue to the nature and value of theproducts produced, which certainlydoes help to give it a unique qualitythat isn't necessarily true of otherfood industry sectors. The totalbakery goods market in Ireland isestimated to be worth just over €500million at the retail level annually, ofwhich 41% is imported.

The domestic market has showngrowth rates of 2-3%, driven by therising popularity of specialist breadsand an increased focus on the areasof health and well-being. The trendfrom 2005 to 2007 was for anincreasing level of imports (it was at€258m in 2006, for instance), risingby approximately 10% per annum.However, there has been movementthe other way as well, with exportsfrom the sector rising by 7% perannum (it was €213m in 2006).

This is an important sector ineconomic terms with it beingstrategically located throughoutIreland, and it also provides directand indirect employment. Within thebakery sector, there are a number ofdifferent markets, which haveperformed reasonably well over thepast few years.

The first of these is the Irish breadmarket, which saw steady growth inthe period of 2002-2008, withestimated sales reaching €350m inthe Republic and Stg£103m inNorthern Ireland. Projections for2012 are €416m and Stg£118mrespectively.

Secondly, there is the Irish cakemarket, which has shown consistentgrowth over the last few years withchilled and individually wrapped cakesdriving growth. In 2008, estimatedsales were €86m in ROI and £36m inNI. 2012 is expected to show sales of€102m and Stg£45m respectively.

Thirdly, we have the biscuit market,which has a value of €278m in ROIand Stg£126m in NI. Sales haverecovered after a slump in 2005-2006, and projections are at thatsales in 2012 will be at €319m (ROI)and Stg£146m (NI).

Though there are many differentbakery outlets in Ireland, there are anumber of brands/manufacturers thattend to dominate the sector.

Brennan's Bread, or Joseph BrennanBakeries to give them their full title,has become synonymous with Irishhouseholds for the last few decades.A second-generation Irish familybusiness, Brennan's have benefitedfrom some excellent marketing andpromotion campaigns in the past,which helped to make it as popular asit is today.

Their Brennans Family Pan is Ireland'sfavourite sliced pan and the brand'smost popular bread. Their productsare available in all retail outlets in thecountry and there is daily distributionto every corner of the island. Thesliced pan is in the top-five sellinggrocery items in volume and valueterms in most retail outlets.

Recognising how consumer lifestylesconstantly change, Brennan's hascontinually adapted its product rangeto suit every palate. The half-panrange, with 10 full slices, is ideal forsingle people or small families and isavailable in white pan, toast pan,wholegrain and wholemeal varieties.

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Sales are usually pretty solid for theDublin-based Joseph BrennanBakeries, with 2007 being anespecially good year for them, as theirrecords showed a sales rise of 15%from the previous year.For over 20 years Cuisine de Francehas been creating delicious FrenchBread by combining the unique skill ofour bakers, passion and pride andonly the finest French flour to deliverto consumers Ireland’s FavouriteFrench Bread.

Cuisine De France has something tosuit everyone: Ireland'sfavourite Demi Baguette forbreakfast or theDemi Baguette Multigrain as ahealthy lunch option; Petit Pain isideal for kid’s lunchbox or as a snackin the afternoon. Parisien is the idealdinner accompaniment for all thefamily

Some Top Tips for retailers todisplay Cuisine De France French

Bread:

•Display the product range as afamily so that it is easily recognisableto the consumer.•Sell the range as a Multibuy toensure optimum Sales•Utilise Cuisine de France Stackersfront of store for optimum positioning.

The increase of “at home”entertainment and the demand forquickly available fresh bread andtreats during the festive period allcontribute to the increase inpopularity of the Cuisine de FranceBake At Home range betweenNovember and January.

The Cuisine de France Bake at Homebread range was launched in2004 and is the same bread that wedeliver to stores daily . Bypackaging this range, we allow it tolast longer and offer the consumer theopportunity to bake it on demand.

The French bread is oven fresh in 8minutes with a range of DemiBaquettes for sandwiches, Petit Pains

for the kids lunchbox and Bouchonsfor soup at dinner parties.

The Italian Ciabattinas offer theconsumer an authentic, rustic taste toadd to pasta dinners and theCroissants and Pain AuChocolat provide a traditional Frenchbreakfast treat.

Some Top Tips for Cuisine deFrance Bake at Home

•Display the product range as afamily so that it is easily recognisableto the consumer.•For optimum sales display in theambient section of your store•Place the customised free standingdisplay unit in a prominent part of thestore to drive sales.Irish Pride Bakeries is the secondlargest bakery in Ireland and theleading Irish bread distributor inIreland delivering a wide range ofbrands to stores including Irish Pride,The LifeFibre Co, McCambridge,Panelto and Stapletons.Irish Pride believe in the importanceof understanding the consumer trendsin the market and have used thisknowledge to develop a range ofbreads that offers something foreveryone from white and wholemealbreads to half pans and soft rolls.Some of the main brands includeSandwich, Big Toast, Healthy Grainand Bunsters.

During 2011 Irish Pride will continueto grow the brand ensuring the highquality fresh bread as well asinvesting in a strong communicationscampaign and maintaining a focusedapproach to sales developmentbecause ...it’s a matter of pride.Pat The Baker was founded in 1953in Granard, Co Longford. Since thenthe bakery has been continuouslyexpanded to meet growing demand.

This has included utilizing newtechnologies to allow for increasedproduction capacity and higherstandards of quality and freshness.The freshness is reflected in theirslogan “So Fresh, It’s Famous” whichis now part of the corporate logo andis readily identifiable with thecompany.

In 1984 the company opened its firstdepot, in Dublin, to cater for itsgrowing market. This was laterfollowed by depots in other parts ofthe country. During this expansion thelevel of employment provided by thecompany has grown and now thecompany provides employment,through direct employees and self-employed agents, to over 400 people.

In 1996 the company moved into newpurpose built offices in MoxhamStreet, Granard, Co Longford, whichnow serves as a modern corporateheadquarters. For sixteen years PatThe Baker has been voted Ireland'sBest Bread by the Master Bakers OfIreland.

Independent Bakeries have a big partto play in the growth anddevelopment of this sector as a whole,and Irwin's Bakery is the largestindependent bakery in NorthernIreland. However, this will not appealnow to those interested in cross-border shopping, due to the change inVAT rates and the differential insterling versus euro.

They also have a presence in theRepublic of Ireland though, as 12% ofthe Portadown-based companiesproducts are distributed and soldwithin the 26 counties. They currentlyemploy 450 employees in their100,000 sq. ft. production site andthey bake over 1 million loaves andmorning goods every week.

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Canned Foods- BeansCanned Foods- Beans

The Canned Baked Beans market isone that has always experienced goodsales, and this has continued evenduring the current economic climate.Indeed, all canned goods, as well asfrozen foods have performed wellduring the current downturn.

As consumers become increasinglykeen to make their money stretchfurther, they are looking towardscanned foods, which have a longershelf life, to cut back on food wastageand help with portion control. Arecent report undertaken by The IrishIndependent estimated that theaverage person throws out €1,300worth of grocery goods each yearbecause they're past a sell-by date.

This figure is truly extraordinary, anddoes tell Irish consumers a lot abouthow they are wasting their food on adaily/weekly basis. Canned goods areextremely flexible though, whichmeans that they will becomeincreasingly important to consumers,who are keen to cut back on both foodwastage and the cost of their foodbills. They are perceived as offeringvalue, nutrition, versatility and anumber of months worth ofavailability, with Canned Baked Beansproviding this in particular.

The 'recyclability' of cans is seen as amajor factor in making products likeCanned baked beans more attractiveto eco-conscious consumers. However,some people may well question howimportant recycling really is to themajority of the Irish population.

Turns out it is very important, with thecounty of Cork being an especiallystrong recycling area in the RepublicOf Ireland. According to a report byrecycling company Greenstar,Corkonians recycled two-thirds oftheir household waste in 2008, withmore than 10,000 customers signedup already in the county.

Over 5,400 tonnes of recyclablewaste were collected and recycled bythe company in Cork last year, whichis 415 trucks worth or enough tocover the Pairc Ui Chaoimh GAA pitchin Cork City six times over.

Included in this is 973 tonnes of glasscollected through the city's onlykerbside glass collection service, and,with the energy saved from recyclingone glass bottle able to run a 100-watt light bulb for four hours, thebenefits for the environment aresignificant.This shows that the people of Cork arevery concerned about being

environmentally-friendly, with Louthalso showing good recycling numbers.The rest of the country needs to followthis lead, as the value of recycling canbe enormous.

All of this shows that Canned bakedbeans are extremely good for you interms of nutrition and convenience,but their use does go beyond merelyusing them, as it is important that thecans are recycled properly after theyare finished with.

Batchelors and Heinz are by far themost dominant brands in this market,and this has been the way for anumber of years. In a market with avalue of €26 million approx.Batchelors and Heinz control a vastmajority of the value share in thismarket.

Yet, there is always an area for growthin every market, and own-label brandshave taken advantage of this in thelast few years to pose a genuinechallenge to the two mainmanufacturers in this market, Heinzespecially.

Nonetheless, there is no doubtingwho the two main brand names are inthe Canned baked beans sector, andthey will continue to rule the roost forthe foreseeable future.

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Based out of Cabra West in Co.Dublin, Batchelors' position as thenumber one leading brand in theCanned Baked Beans market isundisputable. They are also themarket leaders in the Peas and Pulsesmarket in the Republic, but it is theirBaked Beans range which hasgarnered the best sales and the mostpopularity.

In fact, studies and research haveshown that nearly two out of everythree cans of Baked Beans purchasedin Ireland are Batchelors Beans, whichshows us just how powerful a positionthey currently enjoy in this market.

Batchelors was first produced inDublin as far back as 1935, and it hasbecome home to Ireland's finest andmost loved baked beans and peas.The popularity of their beans rangecan be put down to its nutritious tasteand its rich tomato sauce flavour, aswell as the convenience that it offers.Beans are extraordinarily easy tocook and it only takes a matter ofminutes to prepare them as well.

Batchelors continues to meet andexceed the needs of the market with a

wide range of product sizes andvarieties, which are suitable for allhouseholds. In response to a growingtrend of bulk-buying, Batchelors offersattractive promotions in-store onMulti-packs.

Batchelors have a turnover of around€110 million, and Batchelors BakedBeans currently have an estimatedvalue share of 64%,.Their positionhas grown in the last couple of yearswith the strong growth in sales of theirSugar Free Beans range, which areextremely health conscious. Theyprovide the lowest calories in themarket (only 62kcal per 100g) andoutsell Heinz Weight Watchers beansin the Irish market with a ratio of over3:1.

Heinz are currently behind Batchelorsas the second-best bought market inthe Canned baked beans sector,though they are still heavilyrecognised by many consumers in thiscountry. Unfortunately, the past 12months haven't been so kind to Heinz,as they saw profits dipping by some11%.

Lots of big manufacturers like Heinz

would be expecting to suffer problemssuch as these, so they are certainlynot unique from this point of view.However, the big worry for Heinz isthe way that the sales of the firm'siconic baked beans range has flagged,along with their ketchup range. Thishas led to an 8% fall in revenue, whichis possibly more worrying than thedrop in profits.

These poor figures came despite thevolume growth that they continue torecord year on year. Their companydirectors have cited significant salespricing activity and commodity costinflation as reasons for the drop, andthey also pointed to pressures on theavailability of space in store asretailers continue to expand beyondtraditional grocery. Increasedcompetition from own brand rangeshas also been seen as a reason forthis drop-off in profits and revenues.

Despite this, it is expected that Heinzwill recover from their currentposition, and will see an increase intheir revenue stream over the nextyear or two.

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In the Irish market at the moment,there are a number of categories thatstill maintain a niche position withinthe overall market place. The CannedFish market is one of these, and it iscurrently valued at around €30million per annum in the Republic OfIreland.

Canned Fish provides consumers witha healthy option at meal times, whichis not only convenient but alsoprovides value for money.Convenience and value for money hasalways been a winning combinationfor Irish consumers, but the trendtowards eating healthier food (nowmore than ever) means that CannedFish is becoming an even moreenticing proposition.

Trends continue to show that moreand more people are becomingconcerned about their health, andwant to combine convenience foodswith nutrition. Canned Fish more thanprovides this for a consumer, and asthe year goes on, demand starts toincrease steadily. Canned Fish is anexcellent source of protein, and it alsohas the added benefit of being low incalories.

What is somewhat peculiar aboutlinking Canned Fish to a healthylifestyle though is the fact that thereis a considerable amount of fatcontained in its output. This factwould make some people think thatCanned Fish isn't particularly good foryou, but is it actually the one majorexception to the need to restrictdietary fat intake for optimism healthand weight loss.

Studies have suggested the benefitsfrom these 'good fats' may includereduced risk of heart attack andstroke, reduced joint pain, andimproved health. Oily Canned Fishproducts such as Salmon andSardines are some of the best andmost convenient sources of omega-3long chain fatty acids, which help tomaintain a healthy heart.

Probably the fastest growing segment

on the Irish market in this category isTuna, which accounts for 56% of valuesales. Salmon is the next biggestseller with 26% of value sales,followed by Sardines (6%) and allother fish (11%), which includesMackerel, Herrings, Kippers etc.

The two main brands in this marketare John West and Picnic, andalthough John West is the biggestseller of the two, the Picnic CannedFish brand has a strong tradition inthe Irish market. Picnic Canned Fish isthe largest selling Irish owned brandof Canned Fish, and is synonymouswith quality and value. The range isextensive, making Picnic a key playerin the market.

Canned Fish is yet another categoryon the Irish market that tends to bebrand loyal which means that, withineach fish type products, brandblocking should occur. Products alsotend to be allocated space accordingto market share andrate of sale in theIrish market.

Outside of these brands however,

there aren't too many brands of greatnote in the market, with own-labelbrands tending to appear alongsideboth John West and Picnic. This isn't abad thing necessarily, as the stockingof too many brands only createsduplication and clutter. Experts feelthat the branded favourite and oneother brand are more than adequatefor the Canned Fish category.

The Canned fish category should beblocked by fish type making thecategory easier to shop in. However,the strong presence of a couple ofbrands in this market mean that it isquite easy to shop in anyway.

John West is the most dominantbrand in this sector, and is regardedas the brand leader in the cannedseafood market as well, with a 74.7%value market share in the Republic ofIreland according to the most recentfigures. It has been supplying qualityfish products for over 140 years, withits range including tuna, salmon,mackerel and sardines, and it hasbeen sourced from over 30 countriesincluding Ireland.

Canned Foods- FishCanned Foods- Fish

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As product quality has always beenthe cornerstone of John West'sbusiness, and also of its reputation

among consumers, so too issustainability now a major focus forthem, in order to retain that quality inthe future.

In addition to applying an extremelydisciplined selection process inchoosing suppliers, John West iscommitted to the United NationsConvention on the Law of the Sea(UNCLOS) and fully supports theregional fisheries managementregimes espoused by it.John West’s business in Ireland isconsidered to be the strongest andbest performing in the MW Brandsoperation and it is committed to along-term future in the Irish market.They continue to invest in the Irishmarketplace and in the variousstakeholders in the chain.

Though it falls behind John West interms of overall market and valueshare, Picnic does, nonetheless, havea special place in the hearts andminds of a number of Irish consumers.As mentioned above, Picnic CannedFish is the largest-selling Irish ownedbrand of Canned Fish currentlyavailable on the market, which issomething that would appeal to thosewho are interested in seeingindigenous products succeeding in a

competitive market.

The Picnic Canned Fish range containsomega 3 oils in a variety of degrees.The richest sources are Mackerel,Herrings and Salmon, followed byTuna. Probably the most popularproduct in the Picnic line (who,incidentally, are owned by Batchelor's)is the Picnic Tuna Chunks In Brine3x80g, although the likes of PicnicFancy Pink Salmon 105g, Picnic TunaChunks In Brine 185g (4-Pack), PicnicRed Salmon 213g and Picnic TunaChunks In Sunflower Oil 3x80g arealso quite popular, and have beenknown to sell pretty well.

Along with Erin and Lustre, they arethe main brands within the artillery ofBatchelor's that are sold on theExport market, which makes it aneven more valuable commodity forthe Irish economy. Seeing thepresence of Irish products in othercountries can be just as rewardingand satisfying for manufacturers andconsumers (if, for instance, they arevacationing in another country) as itis for the Irish-owned companies toremain strong at home. Exports andImports are a major part of allmarkets in Ireland, so it is necessarythat both are given equal attention.

Canned Foods- FruitsCanned Foods- Fruits

Though it is not the most prominentcanned food sector in Ireland at thepresent, the canned fruit market isnonetheless a very strong sector forthe Irish economy, with an estimatedvalue of approximately €10 million.

It is regarded as being quite a popularform of food for Irish consumers, andthis popularity can largely be putdown to the quick and convenientpurchase that canned fruit provideswithout having sacrificed the qualitythat would be expected from it.

Canned fruit is typically available ineither syrup or natural juice, and thecategory itself tends to be driven bykey flavours such as Pineapple, Peach,Fruit Cocktail and Pear. However,these are the traditionally strongflavours, and they have been joined inrecent years by emerging flavours likeStrawberry and Mixed Fruit, whichhave both earned the right to beviewed as key drivers in the cannedfruit category.

Therefore, it is clear to see that thismarket is one that continues to showstrong levels of growth, and this isonly possible if new and excitingranges are introduced to shelves, asthis offers plenty of variety forconsumers, who are always wary of

repetition in their approach tospending money on food and drinkitems.

It is no surprise then thatmanufacturers have looked for waysto add to the market, and theemergence of fruit pots seems tohave gotten a response from Irishconsumers, with items like LustreKids Route to Fruit showing goodsales and volume growth. A productlike this can offer plenty of nutritionand it is also suitable for youngchildren, which makes it all the moreaccessible to consumers, especiallythose with families.

It has been recommended by thosein the industry that items like KidsRoute to Fruit should be included onplanograms for canned fruit, as it willhelp you as a retailer to continuallysatisfy consumer needs and wants.

All of this tells us that the canned fruitmarket is one to watch out for, but itshould be remembered that its valueis lower than a lot of other marketsout there, which means that brandloyalty is always going to be importantto consumers and manufacturersalike.

Consumers will want to know that thename of the product is one that theycan trust, as for some the idea ofcanned fruit may not necessarilyentice them from the very start. Whilethis market may not beovernumbered with brand names,there are nevertheless three majorbrands that are available across thecountry, namely Lustre, Sunny Southand Del Monte.

Yet, despite the dominance from thesethree, there is still plenty of scope forprivate labels to make their presencefelt, and they currently have a shareof around 26% in the Irish cannedfruit market.

This gives them a reasonably powerfulposition, but it is always uncertainhow long this will last, and a lot of itdepends on how the major brandsprogress in the years to come.

Lustre are, without doubt, the numberone brand in the canned fruit market,and they currently hold a marketshare of around 30%. Lustre operateunder the control of Batchelors, whichno doubt helps it to carry so muchclout.

Indeed, this association has helpedout Lustre on the export market,where it is one of Batchelors' mainbrands sold in this area, along withErin and Picnic.

This serves as a real boost to thecanned fruit market that theirproducts can be exported out ofIreland, but it also works outextremely well in ensuring thatexports of Irish products are strong,and that the tradition of Irish food anddrink items is maintained in otherparts of the world.

Lustre have a number of top-sellingitems in their artillery, with thefollowing five offerings being viewedas the most popular with consumers:Lustre Fruit Cocktail in Juice 410g;Lustre Peach Slices in Juice 410g;Lustre Pear Halves in Juice 410g;Lustre Fruit Cocktail in Syrup 410g;Lustre Grapefruit Segments in Syrup410.

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Playing second fiddle to Lustre, alongwith the always dependable DelMonte, is Sunny South, who have acurrent 16% share of the canned fruitmarket in Ireland. The Sunny Southbrand actually covers three ranges ofthe Irish market though, as it also hasa number of fish and vegetableproducts that are availablenationwide.

In terms of their fruit range, theysupply a lot of the products that arealso available under the Lustre brand,including Fruit Cocktails in both Juiceand Syrup. Sunny South's fruitcocktails are made from a mixture ofpears and yellow peaches thatrepresent approximately 85% of theproducts. The other addedingredients include grapes, cherries,pineapple or papaya.The peaches and pears are usually cutinto small cubes, as are the othertypes of fruit. The containers are filledand syrup or juice is added. Awatertight seal is then applied beforethe pasteurisation process can becompleted.

Sunny South also offers Peaches inJuice and Syrup; Pear Halves in Juiceand Syrup; Pineapple Slices/Pieces inJuice and Syrup; Strawberries in Juiceand Syrup; and Mandarins in Juiceand Syrup, so they certainly provideplenty of variety with their range.

In a market where Lustre is seen asthe top brand by quite some distance,it is no surprise that there seems tobe as much competition for theposition of second-best brand in thecanned fruit market as there is for thetop spot.

This healthy competition currentlysees Del Monte and Sunny Southhaving the same market share of16%. Del Monte works extremelyhard to ensure that their products ofthe highest quality, and in order tomaintain the high standards of the DelMonte brand, they make certain thatthe fruit used for canning has to be ofthe best quality.

Del Monte only picks fruit once it hasreached the moment of perfectripeness. Once this takes place, the

fruit is then packed within hours withthe utmost care in order to preventdamage, thus ensuring that each andevery can of Del Monte fruit containsthe freshest, tastiest, juiciest fruit.

They apply strict quality controls atevery stage of their operation toensure that the consumer can alwaysrely on consistent high quality in everyDel Monte can. Del Monte also havesome smart and innovative marketploys, which have helped theAmerican-based company to musterup a strong position all across theglobe.

February 2011 57

The Canned Vegetables section is oneof the most frequented sections inIrish supermarkets at the moment.With an estimated retail value of over€70 million per annum, the CannedVegetables market is certainly a bigbusiness for manufacturers andconsumers alike.

Consumers want healthy food whichare convenient, but also provide valuefor money. Canned Vegetables canprovide this, especially now that moreand more people are demandingquality foods that cut down on timewithout sacrificing taste. CannedVegetables are proving to beextremely popular with today's busyconsumers more so than in previousgenerations, who see it as theultimate convenience product.

The Canned Vegetables section in-store consists of products like BakedBeans, Canned and Packet Peas,Canned Pasta, Sweetcorn, Carrotsand Pulses. However, it is BakedBeans and Peas that perform the beston this market, as they control over

60% of the sales in the market place.

Baked beans also contain the twomain brands in the Canned vegetablessection, as Batchelors and Heinzaccount for over 65% of the marketshare in Multiples. Though there is nodenying the dominance that Bakedbeans and Peas have in thisparticular, it isn't to say that otherproducts are suffering necessarily.

For instance, there has been stronggrowth in the sales of Canned Pulsessuch as Kidney Beans, Butter Beans,Chick Peas etc. This is now seen as akey growth area, and manufacturershave been giving them a lot ofattention as a result.

Canned Sweetcorn has also shownstrong growth over the past year.Green Giant is Ireland's best-sellingbranded Sweetcorn, with a 65% valueshare of the market. WithinSweetcorn itself, there has beenstrong growth of multi-pack sales overrecent times. Multi-packs themselvesare quite popular within the industry

in general, and are expected toremain this way for the foreseeablefuture.

The Canned Vegetable categoryshould be blocked by vegetable type,making the category easier to shop.In terms of space, each sub-categoryin the market should be allocated inaccordance to share of sales byvegetable type. Nationally this is:Baked Beans – 44%; Peas – 23%;Canned Pasta – 10%; Sweetcorn –9%; Canned Pulses – 6%; Carrots –3%.

Brand loyalty tends to play a majorpart in this category, as many peoplefeel that a brand with a strongposition in the market will give themmore satisfaction than a private labeloffering or a lesser known orunderperforming brand. This is why ithas been recommended thatvegetable type products should bebrand blocked to create greaterpresence on the shelf.

Canned Foods- VegetablesCanned Foods- Vegetables

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As consumers are now becomingmore health conscious, there hasbeen a strong growth in the sales ofSugar Free Beans. Batchelor SugarFree Beans contain the lowest caloriesin the market (only 62kcal per 100g)and outsell Heinz Weight Watchersbeans in the Irish market with a ratioof over 3:1.

Batchelors is Ireland's favourite brandof Canned Vegetables, and continuesto dominate the Canned Vegetablesmarket. From Baked Beans to KidneyBeans and Chick Peas to Mushy Peas,the Batchelors range is extensive andnutritious.

Holding over 64% value share,Batchelors Beans are Ireland'sfavourite Beans brand, and arecurrently outselling their nearestcompetitor, Heinz at a ratherimpressive rate. The most recentfindings show that they are gettingthe better of Heinz at a rate of over

2:1 in a market that is worth over€26 million.

Batchelors Peas range is also enjoyinggood sales, as they currently hold over80% of the markets value. Grown onIrish farms, Batchelors peas nowoutsell all of its combined competitorsby over 4:1. There has been stronggrowth nationally in the sales ofMushy Peas, Marrowfat Peas andSugar Free Peas in particular.

Batchelors have also proven to begood for the Irish economy, with theirinvolvement in the 'Love Irish Food'industry helping to boost theproduction of Irish food in a positivemanner. Other members of this groupinclude Barry's Tea, Tayto, Ballygowanand Goodfella's, and the group isdependent on fulfilling certain criteria,including sourcing from Ireland as faras possible and ensuring that 80% ofthe added value of the product staysin the Irish economy.

Though they often play second fiddleto Batchelors in this particularmarket, Heinz are still a very strongbrand in the Canned Vegetablessector and are, in fact, the largestcanned goods producer in the worldat the moment.

H.J. Heinz (to give them their full title)boast a vast range of canned foodsfrom the iconic Heinz Baked Beans toHeinz Ready To Serve Soups, HeinzSpaghetti, Heinz Sponge Puddings, aswell as the Weight Watchers fromHeinz range and many, many more.Given their position as the world'slargest producer of tinned foods,Heinz see their brand as beingsynonymous with quality and tasteamong consumers worldwide.

Probably the famous Heinz tinnedproduct in Ireland is Heinz BakedBeans, which is now available in threesizes since they underwent a labelredesign in the latter part of 2008.They are also available in ReducedSugar and Salt varieties, each witheasy-open ring pulls.

They are also have a popular range oftinned spaghetti, with hiscontinuously expanding and updatingin response to childrens' ever-changing tastes. Made withMultigrain pasta, Heinz Spaghetti isthe definitive brand leader with HeinzSpaghetti and Heinz Spaghetti Hoopsbeing the category’s strongestperformers.With so many sub-categories withinthe canned vegetables, there is alwaysplenty of scope for a lesser-knownbrand to make their mark. Erin maynot be the best known brand in thiscategory, but they have achievedsteady sales and have managed tosecure a credible position in themarket.

A large part of their output is in thecanned soup sector, with ErinCondensed Soup leading the way witha market share of 37.3% value share.The soup market is worth €54.8million in Ireland, so the figures thatErin are recording should not beeasily dismissed.

A classic and versatile soup, the ErinCondensed range has 13 differentsoups including Low Fat, Family andSpecial Choice packs that provideeasy meal solutions for all occasions.

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The growth of olive oil from aspeciality product to one that now hasmass market appeal is largely due tothe promotion of olive oil’s healthbenefits, alongside plenty ofinvestment in product ranges.However, they haven’t completelytaken over from cooking oils, andthere are still a number of cooking oilstyle products that are performingwell in the market.

This is something that Mintel pickedup on around 2005, when they statedthat “light and mild oils are expandingwhile spray oils are also benefitingfrom growth”. This is something thatwould give great encouragement tothose in this category, though thisconcluding line from Mintel wouldindicate that it hasn’t all been rosy forthe cooking oil market in recent years:

“However it is the speciality sector,which includes flavoured and infusedoils, that has made most progress”,their report revealed.

The reason that olive oils areperforming so well in contrast tocooking oil can be related to theobesity problem in Ireland, whichseems to have worsened in the pastfew years. 2009 figures suggestedthat 24% of the population could beclassified as obese. This means that ahealthier Mediterranean lifestyle,which would include the likes of extra-virgin olive oil in cookingpreparations, are becoming moreappealing to a lot of people.

In the purest of terms, cooking oil ispurified fat of plant origin, which isusually liquid at room temperature.

Some of the many different kinds ofedible vegetable oils include: palm oil,soybean oil, canola oil, pumpkin seedoil, corn oil, sunflower oil, saffloweroil, peanut oil, grape seed oil, sesameoil, argan oil and rice bran oil.

However, the generic term “vegetableoil”, when used to label a cooking oilproduct, may refer to a specific oil(such as rapeseed oil) or may refer toa blend of a variety of oils often basedon palm, corn, soybean or sunfloweroils.

Despite the rise of olive oil and otherspeciality oil products, as well as thechallenges being posed by private-label brands, there are still a coupleof brands in this market that are stilldoing their utmost to maintainconsumer interest in ordinary cookingoil products.

Manufactured by Unilever, Flora is avery important margarine brand inIreland, and is also available in theUnited Kingdom, Spain, Poland,South Africa, Hong Kong, NewZealand and Australia. They are alsosold in other parts of the world (suchas the Czech Republic and NewZealand) as Becel. Unilever came upwith the brand initially after they wereasked by medical professionals tocome up with a healthier alternativeto butter, lard and hard margarines.

However, while it will always be seenprimarily a brand of margarine, Floraare also a strong supplier of oils inIreland, and their products can befound beside other popular cookingoil and olive oil brands insupermarkets across the country.

Cooking OilsCooking Oils

Cooking Oil has always been a popular product inIreland, but has started to play second fiddle to the more

premium Olive Oil products in recent years. This issomething that market analyst Mintel has noted in recent

years and, according to a report they did in 2009, theyhave found that (since 2006) “the shift away from

standard oils to premium olive and speciality oils hasgathered pace”.

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In terms of their distribution of oil,Flora are one of the most trusted foodbrands in a number of countries,especially in the UK, where it isestimated (according to Nielsenstatistics) that over 10 millionhouseholds currently use Florabranded products. Their product issold in this category as FloraSunflower Oil, which can be used fordeep and shallow frying, as well as forsalad dressings.

This showed that Flora is quite aversatile product when it comes to thecooking oil market, and this versatilityhas helped Flora to become the UK’sleading sunflower oil brand, and oneof the key players in the Irish marketas well. They can thank some fineinnovation for leading them to thisposition of dominance, with a recentaddition to their product line being anew Flora Sunflower Oil Spray foreasier portion control, especially forstir frying needs. Consumers arealways looking for the utmost inconvenience when it comes tocategories like this, and this is wherethe new spray formula delivers.

Flora’s Sunflower Oil comes fromcertified organic, sun-ripenedsunflower seeds, which are able togive them a delicious, slightly nuttyflavour and a light yellow to richgolden colour. The seeds are normallycold-pressed in small batches in astate-of-the-art low-heat, light- andoxygen-free environment.

The oil is then carefully bottled inlight-resistant amber glass with anitrogen flush to maintain optimumfreshness, prevent oxidation andensure that maximum nutritionalvalue is derived from their products.Flora’s Sunflower Oil is guaranteedGMO-free to ensure the safest, besttasting cooking oil.

Marketed by the Princes Limitedcompany, and manufactured by EdibleOils Limited, Crisp ‘n Dry are a brandof vegetable oil that has proven to beenormously popular in this marketdown through the years, continuing

into recent times. Edible Oils claimthat vegetable oil leaves food dry afterfrying, which is an indication as towhere the name was derived from.In this regard, Crisp ‘n Dry comparesfavourably to other vegetable oils,which require the fried food to bedried with kitchen paper in order toabsorb excess oil. Previously, Crisp ‘nDry has been marketed by Spry, andthen Unilever, but were then acquiredby Princes Limited which, interestinglyenough, is also the path that FloraSunflower Oil has followed to get totheir current positioning.There are a number of importantfeatures that make Crisp ‘n Dry such apopular choice for Irish consumers,with one of them being the lack ofcholesterol that is present in theirproducts. In addition, the block ofCrisp ‘n Dry no longer contains transfat.

On top of having the number onesunflower oil brand in the UK, PrincesLimited also have the numbervegetable oil brand in the UnitedKingdom in Crisp ‘n Dry (though thisis principally in volume terms). It is, bythis stage, an iconic cooking oil, whichcan be used for all types of cookingfrom basting to stir frying androasting to deep frying, making surethat food is always cooked toperfection.

Their range includes a handy sprayoil, a solid vegetable oil and the bynow traditional liquid oil, all of whichare essential store cupboard items inkitchens across the country. Crisp ‘nDry can be seen in shops as aregistered trademark of Edible OilsLimited, a company that acts as ajoint venture between Princes Limitedand ADM Trading (UK) Limited.

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Small food businesses in Irelandare continuing to demonstrate stronggrowth both on the domestic andexport markets, according to newfigures released by Bord Bia today.Bord Bia works with over 400 smallfood businesses with an annualturnover of some €400 million,representing an increase in value of 7per cent per year since 2007. Lookingahead to 2011 the prospects alsoremain positive. According to BordBia’s recent food industry survey(December 2010) over 70 per cent ofsmall food businesses viewed theprospects for their business in 2011 asgood or very good. When asked tocompare their prospects to a yearearlier, 56 per cent rated them asbetter.

When asked the source of businessgenerated over the last year some 74per cent increased business with

existing customers, 43 per cent wonback business with former customers,while an impressive 90 per centdeveloped business with newcustomers. In terms of sales prospects,65 per cent had increased their salesforecasts for 2011.

“We’ve seen significant success inthe past few years despite this beingperhaps the most difficult period facedby the sector. Small business sales aregrowing even among those dependenton a very challenging Irish market.While annual turnover has grown by 7per cent, certain categories areexceeding this level of growth”commented Una Fitzgibbon,Marketing Services Director, Bord Bia.“Non alcoholic beverages have shownin excess of 40 per cent growth since2007, driven by an appetite formineral water and sports nutritionaldrinks; alcoholic beverages increased

by more than 30 per cent driven by anew demand for boutique or craftbeers and charcuterie has grown byover 25 per cent as consumersbecome more aware of the distinctionin deli meats.”

Over 140 food entrepreneursgathered today for Bord Bia’s SmallBusiness Seminar in Enfield, Co.Meath. Keynote speakers includedthose who have overcome personaland business obstacles includingGrania Willis, the first Irish woman tosummit the Himalayan peak Cho Oyu(the sixth highest mountain in theworld), and Willie Wixted of ABCNutrition, a fast-growing sportsnutrition manufacturer set up in 2007,currently exporting to thirteencountries including France, Sweden,Spain and India. Other keynotespeakers included Jonathan Ryan ofKantar on how changing consumer

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Other keynote speakers includedJonathan Ryan of Kantar on howchanging consumer behaviour willimpact on businesses in 2011.Branding expert John Fanning,Economist Jim Power andentrepreneur Domini Kemp gavevaried perspectives on how to best usebranding, marketing and finance tobring sales to life in the currentclimate.

Small Companies, Big IndustrySpeaking at the conference, Eileen

Bentley, Manager of Small Business,Bord Bia said,

“Today’s seminar aims to remindsmall food producers of the wide rangeof services and programmes readilyavailable to develop existing and newbusiness. Increasingly we’ve designedour services in Bord Bia to makeprofitability and growth moreaccessible to small food businesses.

“We provide access to buyers inIreland and export markets; exploreefficiencies on behalf of clientcompanies such as shared distribution;help them build better brands throughworkshops, coaching and one to onementoring and invest in theirmarketing development via the annualMarketing Assistance Programme.

‘In 2010, 157 companies wereapproved a total of almost €900,000in marketing grant aid”. Today’sdelegates also heard about ways togain a foothold in export markets viaBord Bia’s Marketing FellowshipProgramme. In 2009 and 2010, BordBia Fellows carried out thirty sevenprojects across eight overseas marketson behalf of twenty small foodproducers.

Bord Bia’s Programmes & ServicesBord Bia’s Vantage website is the

focal point for small food businesses.The website includes information on avast range of topics from ‘How to Starta Business’ to the latest foodmarketing insights and opportunities.In addition to the website, VantagePartner and Vantage Plus, Bord Bia’sbusiness development programmes forsmall businesses, are tailoredprogrammes dealing with individualcompany needs at various stages ofgrowth. They have resulted in

participants winning new business,exporting for the first time, creatingstrategies for growth and expansion,undertaking re-branding exercises andmost importantly, facilitatingparticipants to step back from theeveryday business to create a long-term vision for where they want to be.

Bord Bia recently launched a FoodEntrepreneurs Network to establish aformal networking environment forfood entrepreneurs. Among thethemes for future meetings, asidentified by the members, will befinance and investment and bestpractice sharing through case studiesand discussion.

In addition, following the outcome

of research conducted by Bord Bia inlate 2010, planning has commencedfor the creation of a virtual innovationspace for food entrepreneurs andothers to come together to work anddevelop their ideas.

In 2011, small producers will travelwith Bord Bia to trade fairs in the UK,Germany and further afield. Nextmonth, seven organic small producerswill participate on the Ireland stand atBiofach in Germany, the largestinternational organic trade fair in theworld.

The Speciality & Fine Food Fair inLondon in September is a key tradeshowcase for Irish artisan food.

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