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TODAY’S GROCERY MAGAZINE FOODFINDER 2009

TGm Foodfinder

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Page 1: TGm Foodfinder

TODAY’­S­GROCERY­MAGAZINE­­­­­­­­­­­­­­­­­­­­­­­­­­F

OODFINDER­2009

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CONTENTS

2.........Evolution of the Grocery Sector

10.........Planning in Retail

14.........Lean Machine

18.........Branding in a Recession

THE TEAM:

Managing Director/EditorFrank Madden

Deputy EditorRuth Timmins

ContributorsMargaret CorryCatherine ShortallJulie-Anne DowneyMartin Wright

Business Development ManagersNiall MaddenSarah GriffinPaul Murphy

Production DirectorIrene Comerford

Design90% Proof

Todays Grocery Magazine (TGm)The MewsEden Road UpperDun LaoghaireCo. Dublin

Tel: 01 2809466 (6 lines)

Email:General Enquiries:[email protected]

[email protected]

www.todaysgrocery.com

Small Print & Disclaimer

Small PrintFoodfinder is circulated to all proprietors, directors andmanagers of all relevant manufacturers and distributors,to every cash and carry, every multiple supermarket,group head office and wholesaler, all group affiliatedshops and Londis outlets in addition to over 6,300 unaf-filiated independent retailers and the country’s leadingoff-licence outlets. All articles are copyright of TGMFoodfinder and cannot be reprinted without the writtenpermission of the editor. All letters to the editor of thismagazine will be treated as having been submitted forpublication. The magazine reserves the right to edit andabridge them.

DisclaimerWhile every effort has been taken to ensure that all in-formation is accurate at the time of going to press, nei-ther Fipin Media Ltd or Todays Grocery MagazineFoodfinder accept responsibility for any inaccuracies oromissions. Please note that the opinions expressed inthe articles are strictly those of the authors.

FOOD

22.........Baby

28.........Biscuits & Cake

32.........Bread

36.........Cereal

42.........Confectionery

50.........Dairy - Cheese

52.........Dairy - Milk

56.........Dairy - Spreads

60.........Dairy -Yogurt

64.........Ethnic Foods

66.........Fish

70.........Frozen/Pizza

76.........Fruit/Vegetables

78.........Home Baking

82.........Ice Cream

86.........Meat

88.........Pasta

92.........Preserves

94.........Ready Meals

98.........Rice

100.......Salads & Sauces

104.......Snacks

112.......Soup

116.......Tinned

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Foodfinder Bigger and Better….

2009 sees Foodfinder celebrating its12th year in publication. Foodfinder isan overview of the food, drink and non-food markets with categories rangingfrom alcoholic beverages to ethnicfood, from personal care to softdrinks. Foodfinder has a wide audiencespanning the multiple, symbol, inde-pendent sectors as well as off-licenses,cash & carries, wholesalers and allhead buyers.

Like all good brands, Foodfinder hasevolved with its readership; combiningup-to-date market analysis with con-sumer behaviour and attitudes. TGm’sexperienced team instinctively knowswhich issues are going to have themost impact on the trade. We breakdown the perceptions of the industryby reporting with authenticity.

This year we have added some newflavours to the mix. In addition to mar-ket reviews, we have included severalreports based on exclusive researchconcerning issues which are of concernto the industry. That the current chal-lenges confronting us are exceptionalis undeniable, yet they can be con-quered. Many a great business, brand,empire was built during the harshestrecession. It is encouraging to see thatIrish companies seem up for it, andhave adapted to change by thinkingoutside the box.

During research for Foodfinder, TGmspoke to a cross-section of food, drinkand non-food companies about thebest strategies for 2009. Across theboard, the hypothesis was the same -get back to basics. In other words, pullup one’s sleeve, visit the shop floor,press some flesh, and perhaps mostcrucially - offer transparency to restoreconfidence.

Foodfinder tackles the issues facingthe industry in 2009. For example,Evolution of the Grocery Sector exam-ines the strengths, weaknesses, oppor-tunities, developments and growth ofthe FMCG industry. Planning in Retailcharts the expansion of the retail in-dustry over the last decade in Ireland.Lean Machine offers ‘punching out’ so-lutions to the current economic down-turn. Lastly, Branding in Recession is atimely reminder of the importance ofmaintaining brand confidence duringchallenging times.

Frank MaddenManaging editor

NON FOOD

174....Battery

176....Fuel

178....Health & Beauty

182....Household

186....Oral Care

188....Over The Counter

192....Paper Products

194....Personal Care

196....Pet Care

200....Tobacco

208....VMS

DRINK118.......Beer

124.......Cider

126.......Spirits

136.......Wine

152.......Soft Drinks

154.......Carbonates

158.......Dilutables

160.......Fruit Juice

162.......Still Juice

164.......RTD’s

166.......Sports/Energy

168.......Water

170.......Coffee

172.......Tea

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productivity

EVOLUTION OF THE GROCERY SECTOR

2 TGm F o o d F i n d e r 2 0 0 9

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We often pay attention to analysis ofthe grocery and FMCG industry. Thestrengths, weaknesses, opportuni-ties, development and growth of in-dividual sectors is of immensebenefit to all. However, what is fre-quently overlooked is the structureof the grocery industry; its composi-tion from head to toe. Moreover, it isas important to familiarise ourselvesbefore analysis, with the makeupand definitions of the overall indus-try. At this moment in time, thestructure and competition at thewholesale and retail levels of the gro-cery sector has never been moreparamount.

The Competition Authority, in its re-

port on Grocery breaks down the re-tail industry as three types ofoperators. These include vertically-integrated retailers - who own andoperate multiple retail outlets acrossthe State, and in effect carry on theirown wholesaling. Affiliated retailerstypically own and operate one retailoutlet (and in limited cases, severaloutlets) under a retail brand or fas-cia which is used by other retail out-lets and is under license from awholesaler-franchiser. Finally, inde-pendent retailers are those who ownand run a retail outlet under aunique retail brand or fascia andwho are not affiliated with a whole-sale-franchisor. These include inde-pendent retailers, newsagents andgarage forecourts.

There are two types of wholesale op-erators including wholesaler-fran-chisors who engage in the traditional

function of buying goods from sup-pliers for resale to retailers (and bydefinition, do not license a brand orfascia or retailers).

Based on information gathered forthe project, the Competition Author-ity has estimated the size of thewholesale and retail levels of the gro-cery sector in Ireland. The wholesalesector has a turnover of €4.7bn ofwhich €3.6bn is attributable to gro-cery goods. Retail has a turnover of

€14.6bn of which €12bn is attrib-utable to grocery goods.

Over 95% of the wholesale turnoverin the Irish grocery sector is attrib-utable to seven groups of operators.There are six wholesale-franchisors;ADM Londis, Barry Group, BWGFoods, the Gala Wholesalers, Man-gan Wholesale (acquired by BWG)and Musgrave. There is also a groupof 12 independent cash and carrywholesalers. This group, along withBarry Group, the Gala Wholesalersand Mangan Wholesale, forms theStonehouse buying group.

Each of the six wholesaler-fran-chisors licences the use of a retailbrand or fascia under a franchiseagreement to retailers and sellsgoods at wholesale predominantly toits affiliated retailers. For example,Musgrave license the use of the Cen-

tra and SuperValu brands, BWGFoods licenses the use of the Sparbrand and ADM Londis licences theuse of the Londis brand.

The combined turnover of the sevenmajor groups is estimated at €6bn.This represents growth of over 50%in nominal terms since 2001. Thewholesale level of the grocery supplychain is highly concentrated. Mus-grave and BWG Foods, two groupstogether account for almost 80% of

the €3.6bn.

The wholesalers differ in a numberof respects. Firstly, wholesalers differwith respect to the importance of dif-ferent types of customers. Thewholesaler has three main customertypes - the affiliated retailers, otherretailers and other customers, prin-cipally involved in catering.

For most wholesalers, their affiliatedretailers are their most importantcustomers. Affiliated retailers ac-counted for just over 78% of grocerywholesale turnover on averageacross all wholesalers. For ADMLondis, affiliated retailers accountedfor almost all grocery wholesaleturnover, while the Gala Wholesalerssales to affiliated retailers accountedfor just 29% of the grocery whole-sale turnover.

F o o d F i n d e r 2 0 0 9 3

Evolution of the Grocery Sector

Wholesalers have different distribution capacities.

They make use of three distribution channels............

Leo Crawford Simon BurkeMargaret Heffernan

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Wholesalers have different distribu-tion capacities. They make use ofthree different distribution channels;delivery of goods that have beenstored at the wholesaler’s ware-house; direct delivery by suppliers toretailers and goods that are col-lected by customers from cash andcarry centres. Distribution capacityprincipally involves warehousing. Onaverage across the wholesalers, ap-proximately 62% of wholesale gro-cery goods turnover came fromgoods delivered by wholesalers;34% came from goods delivered di-rectly by suppliers; and 4% of gro-cery goods turnover came fromgoods that were collected by cus-tomers.

Musgrave, with the greatest amountof warehousing floor space of all themajor wholesale groups, derives79% of its grocery wholesaleturnover from sales of goods deliv-ered to their customers, 19% fromsale of goods delivered directly bysuppliers and just and 2% from thesale of grocery goods that are col-lected by retail customers

At the other end of the spectrum isADM Londis which, with the smallestamount of warehousing floor space,derives about 15% of its grocerywholesale turnover from the sale ofgrocery goods that are delivered tocustomers with the remainder ofwholesale grocery turnover coming

from goods that are delivered di-rectly by suppliers.

Wholesalers differ with respect totheir geographical scope. While eachof the wholesaler groups has cus-tomers located across the State,however, some have more of a re-gional presence than a national pres-ence. Customers of ManganWholesale, for instance, appear to bemore concentrated in the west andUlster regions. Customers of BWGFoods and Musgrave are distributedrelatively evenly across the country.

Given this market structure in whichover 78% of wholesale turnover isderived from sales to affiliated re-tailers, competition at the wholesalelevel in the grocery sector is focusedon efforts by wholesaler-franchisorsto compete for retailers to becomeor remain their affiliated retailersand to increase sales of goods tothese affiliated retailers.

At its core, wholesaling involves thepurchase of goods from suppliers forresale to retailers and other cus-tomers. Wholesalers have tradition-ally been involved in varying degrees

in the provision of storage, distribu-tion and other services in connectionwith the sale of goods.

The principal innovation of modernwholesaling is the emergence andgrowth of wholesaler-franchisors,that is, wholesalers which sell pre-dominantly to retailers who are affil-iated to them. The development ofthis relationship with affiliated re-tailers has been the main focus ofwholesaler-franchisors in order to in-crease wholesale turnover from salesof goods.

The relationship between a whole-saler-franchisor and its affiliated re-tailers consists principally of anagreement to license a retail brandor fascia to retailers and to requireor to encourage the affiliated retail-ers to buy all or most of their re-quirements from the wholesaler-franchisor. To develop and reinforcethis relationship, the wholesaler-franchisor strives to offer attractivewholesale prices and rebate policiesto its retailers as well as to providevarious types of support services toits affiliated retailers to improve theirprofitability.

Thus, modern wholesaling is verymuch involved with developments atthe retail level. Under the franchiseagreement with its affiliated retail-ers, the wholesaler-franchisor offersthese retailers the opportunity to op-erate their outlets under a commonbrand. From the perspective of theaffiliated retailers, it believes that itsoutlets will operate more profitablythan if operated under its own brand(as an independent retailer) or undera brand of another wholesaler-fran-chisor. The success of affiliated re-tailers would be expected toenhance the profitability of thewholesaler-franchisor.

The wholesaler-franchisors offer awide variety of support services totheir affiliated retailers which are de-signed to improve the viability andprofitability of the outlets of the af-filiated retailers.

Evolution of the Grocery Sector

The relationship between a wholesaler-franchisor and itsaffiliated retailers consists principally of an agreement tolicence a retail brand or fascia to retailers and to require orto encourage the affiliated retailers to buy all or most of their

requirements from the wholesaler-franchisor.

4 T G m F o o d F i n d e r 2 0 0 9

Chris Martin

Seamus O’Riordan

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Evolution of the Grocery Sector

The licensing of a retail brand im-plies that wholesalers as wholesaler-franchisors are now involved in thebranding of retail outlets and themarketing of the brand. They assistaffiliated retailers with the choice ofproducts they retail and recommendthe prices at which they sell thoseproducts. Wholesalers are also in-volved in a variety of the logisticalaspects of retailing including productordering, stock management, billingand business planning, particularlywith newly-affiliated retailers.

The net effect of the emergence anddevelopment of the wholesaler-fran-chisor in the wholesaling of grocerygoods is that wholesalers and retail-ers have become more integratedand in some respected mimic thebusiness models of the vertically-in-tegrated retailers who combinewholesaling and retailing in a singlebusiness entity.

The trend toward the deepening ofthe wholesaler-retailer relationshipexplains, in part, the relative stabil-ity of turnover shares in recent years.While the modern wholesaler-re-tailer relationship holds advantagesfor both sides, the principal advan-tage from the point of view of thewholesaler is that it helps ensure astable and ongoing demand for the

products that it wholesales. In thisregard it is noteworthy that switch-ing rates among affiliated retailersare relatively low.

A further explanation for the relativestability of turnover shares of themain wholesaling groups may relateto the nature of distribution logisticsand their potential to inhibit entry.

The use of proprietary distributionnetwork seems to be an importantbarrier to entry. It is not an essentialrequirement for entry; however, theabsence of a proprietary distributionnetwork together with other factorssuch as economies of scale,economies of density and switchingcosts for retailers who are affiliatedwith wholesaler-franchisors, makeentry difficult at the wholesale level.

There are an estimated 9,198 gro-cery retail outlets in the State, ofwhich 2,790 are affiliated retailers(symbols), 1,956 are independentretailers (post -office with shop)1,835 are garage forecourts (stan-dard 1,056, c-store 665 and kiosk114), 1,812 are TNS (newsagents),385 are vertically integrated retail-ers (multiples), 322 are specialistoff-licences, and 98 are cash & carryoutlets. There has been consider-able expansion by the main retailergroups in the country. The numberof retail outlets belonging to the ver-tically-integrated retailers has al-most doubled since the early 2000s,as has the number of retail outletsbelonging to affiliated retailers. Incontrast, the number of retail outletsbelonging to independent retailersfell by 44% reflecting a much longer-term trend.

Vertically-integrated retailers to-gether account for 46% of the€12bn retail turnover in the grocerygoods in the country. The retailerswhich are affiliated to the fourlargest wholesaler-franchisors ac-count for 40% of retail groceryturnover while the other retailers, in-dependent retailers and retailers af-filiated to smaller wholesaler-franchisors account for 14%.

The six vertically-integrated retailersare Aldi, Lidl, Dunnes Stores, Marks& Spencer, Lidl, Superquinn andTesco. Six wholesaler-franchisor li-cense 18 retail brands or fascias inthe grocery sector. BWG Foods hasthree brands Mace, a group of inter-related brands under the namesSpar, Eurospar and Spar Express,and XL Shop & Stop. Gala RetailServices has the brand Gala, GalaSuperstore, Gala Xpress and Check-out. Mangan Wholesale was ac-quired by BWG Foods and operatesthree brands; Mace, Vivo and XpressStop. Musgrave has four brands Su-perValu, Centra, Daybreak and Day-Today.

The combined turnover of these re-tailers was €14bn which was 86%of estimated turnover for that year.This represented a nominal growthin turnover of 70% from €7.4bn in2001. The combined grocery goodsturnover of these retailers, for whichhistorical information was available,was €10.0bn which was 85.9% ofestimated total grocery turnover forthat year. The vertically-integratedretailers and affiliated retailers hadcombined grocery net retail floorspace of 1.1 million m2, a figurewhich has obviously grown consider-ably throughout the 2000s. This in-crease is largely attributable to thegrowth of the vertically-integratedretailers. Floor space belonging tothe vertically-integrated retailers in-creased by almost 62% since theearly 2000s.

Generally speaking the retail groupswith the highest share of turnoverhave the highest volume of retailfloor space and the greatest numberof outlets. In varying degrees, all re-tailer groups have a presencethroughout the country.

Tesco and Dunnes Stores had thewidest geographic distribution of thevertically-integrated retailers,though the rapid expansion of Aldiand Lidl implies a growing nationalpresence. Among the affiliated re-tailers of the two largest wholesaler-franchisors, Musgrave ands BWGFoods, had an even distribution ofoutlets across the country. Musgraveand BWG Foods, had an even distri-bution of outlets across the country.The other grouping of affiliated re-tailers tend to be more regionallyconcentrated.

MARKET STRUCTURE ANDCOMPETITION WITHIN THE

RETAIL LEVEL

Tony Keohane

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At the retail level, retailers are facedwith consumers with a diverse set ofcharacteristics, tastes and needs.These are in constant flux from con-venience to value. Among the impor-tant differences are those inlocation, purchasing patterns, prod-uct preferences and brand prefer-ences. In response, retailers haveevolved in different ways to seek thecustom of these consumers, princi-pally through choice of pricing andpromotional policies, product rangeand location of retail outlets.

The vertically-integrated retailerstend to pursue national pricing andpromotional policies, offer a broadrange of products including well de-veloped lines of own-label productsthat cater for a variety of tastes andto locate in more urban areas withlarger retail outlets often in shop-ping centres. Notwithstanding thesegeneral tendencies of the vertically-integrated retailers, there are somenotable differences.

Lidl and Aldi tend not to locatewithin shopping centres, opting in-stead for standalone location.Dunnes Stores, Tesco and Su-perquinn offer a comparable productrange. Lidl and Aldi and Marks &Spencer all tend to have a very fo-cused product ranges with own-labelgoods featuring prominently. Theseretailers have a similar number ofproduct categories but more limitedproduct depth than the other verti-cally-integrated retailers. Unsurpris-ingly, outlet size appears to beclosely related to the extent of prod-uct range on offer. Accordingly, Aldiand Lidl, whose outlets tend to berelatively uniform in terms of size,are somewhat smaller than those ofother vertically-integrated retailers.

The affiliated retailer groups differfundamentally from the vertically in-tegrated retailers. Affiliated retailerstends to have a much wider geo-graphic dispersion than the verti-cally-integrated retailers, locating inboth urban and rural locations. Theytend to carry a narrower productrange that the vertically-integratedand operate smaller outlets. Affili-ated retailers also tend to havelonger opening hours. While whole-saler-franchisors recommend pricesto their affiliated retailers, they arelegally prevented from enforcing

their recommendations. The affili-ated retailer groups therefore tendto exhibit price variation across out-lets, in part because outlets operat-ing under the same brand are ownedby retailers who are independent ofeach other and the wholesaler-fran-chisor to which they are affiliated.

The SuperValu Group of affiliated re-tailers is exceptional. In many re-spects, the outlets of SuperValuretailers are similar to outlets oper-ated by the vertically-integrated re-tailers. Outlet size, product rangeand the extent of development oftheir own -label offering all implythat SuperValu retailers are compa-rable to those of the vertically-inte-grated retailers. Unlike thevertically-integrated retailers, Super-Valu affiliated retailers are present inless urbanised areas. One implica-tion of this is that on an outlet tooutlet basis, SuperValu retailers tendto face the least number of similarcompetitors relative to outlets of thevertically-integrated retailers.

The vertically-integrated retailersand the affiliated retailers appear tosatisfy different consumer require-ments. The offering of the vertically-integrated retailers is targetedprimarily at one-stop shoppers. Incontrast, affiliated retailers satisfytop-up or convenience requirements.

The exception is the SuperValugroup of affiliated retailers.

Apart from SuperValu exception,there are two other important ex-ceptions. Firstly, the vertically-inte-grated retailers which serve top-upor convenience shoppers, for exam-ple, the opening by Tesco of outletsunder the Tesco Express brand, toserve city centre convenience shop-pers. A number of the other verti-cally-integrated retailers have madesimilar moves.

Some affiliated retailers also targetthe one-stop shopper. The principaldriving factor behind grocery retail-ing is population density. The popu-lation density required to support atypical outlet of a vertically-inte-grated retailer is greater than thatrequired to support a smaller outletof an affiliated retailer. While this ex-plains the wider geographic distri-bution of affiliated retailers, it alsoexplains why, in some rural locationswhere population densities arelower, affiliated retailers often serveone-stop shopper as well.

It is also worth noting that the cur-rent dismal economic outlook hascreated challenges, not only for re-tailers, but for consumers and prior-ities have changed almost overnight.

Evolution of the Grocery Sector

8 T G m F o o d F i n d e r 2 0 0 9

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Consumers will not be as interestedin to-up convenience and many havealready reverted to the more tradi-tional once-a-week- trolley shop com-prising innumerable own-labelgoods. This has proved a massivechallenge to retailers who are dis-counting like never before.

Since the turn of the century, therehas been a sharp rise in the numberof premises licensed to sell alcoholfor consumption off-premises. Manyof these licenses have been obtainedby supermarkets, convenience storesand petrol stations. At the sametime, the number of bars has fallen.This pattern is part of a generaltrend in Ireland towards drinking athome and away from drinking inpubs.

The official statistics show that thegrowth of the off-trade sector hasnot been met with any increase inthe consumption of alcohol. In factIreland has experienced a steady fallin alcohol consumption since 2001,reversing a trend of previous decade.

The off-trade sector includes inde-pendent off-licences, petrol stations,

grocers and supermarkets that arelicenced to sell alcohol, while the on-trade sector refers to pubs, clubsand hotel bars.

The off-trade sector has experiencedrapid growth in recent years. Thenumber of off-trade premises in Ire-land rose from 1,181 to 4,719 be-tween 200 and 2007, and increaseof almost 300%. The volume of off-trade sales has grown, rising by8.5% between 2006 and 2007.

In contrast the on-trade sector hasweakened both in terms of numberof premises and sales volumes. Sincethe start of the decade the numberof on-trade premises has fallen from11,014 to 9,422, a decrease of al-most 14.5%. The sector also experi-enced a fall in sales volumes of 4.7%between 2006 and 2007.

The off-trade sector now accountsfor 39.1% of total alcohol sales vol-umes in Ireland. Independent retail-ers share of the off-trade market hasfallen from 45.2% to 44.4% be-tween 2006 and 2007. Supermar-kets and convenience storesaccounted for 53.2% of the off-trademarket in 2007, up from 52% in2006.

The growth of the off-trade sector

and the decline of the on-trade sec-tor shown above coincided with anumber of regulatory changes in Ire-land which one would expect to havecontributed to such a pattern. Theseinclude March 2004 - the smokingban was introduced; March 2006 -the groceries order was abolished;July 2006 - random breath tests todeter drink driving began.

Changing social patterns, such astechnological advancements in homeentertainment and an increasedpreference for wine, changing demo-graphics, changing property values,and a change in attitude to drinkdriving are also all likely contributoryfactors to this phenomenon.

Since the abolition of the GroceriesOrder in March 2006, the price ofalcohol sold by the off-trade hasfallen - by 3% between March 2006and December 2007. This has notled to an overall increase in alcoholconsumption. Alcohol consumptionper person aged 15 years and overactually fell from 13.36-litres in2007, continuing the downwardtrend from a peak in 2001 of 14.09litres per person aged 15 years andover.

[Source - The Competition Authority]

Evolution of the Grocery Sector

TRENDS IN THE OFF-TRADEAND ON-TRADE

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For in many cases expansion over-took demand and great homage’s’ toshopping were built often to keepout a rival than to meet genuine con-sumer need. Now that the bottomhas fallen out of property and reces-sion has stepped into its place, re-tailers have had to get back toasking the basic question - whatdoes the consumer want.

Charting the journey retail expan-sion has taken in this country offersinsight into how gapingly absent theconsumer has been from planningdecisions. The greatest amount ofexpansion in the Irish retail marketbegan in 2000 and began to dry upby the end of 2007 when propertyslowed and the economy changed

for the worse.

Lidl and Aldi opened the first andsecond greatest number (35% and19%) respectively of retail outletsover the period of 2000 to 2007.Dunnes Stores showed the thirdgreatest level of expansions over theperiod and accounted for 16% of allnew retail outlets opened by theplanning group over the period.Dunnes Stores had 102 or 18% ofall retail outlets by the end of 2007.

Tesco showed the fourth greatestlevel of expansion in terms of num-bers of retail outlets opened over theperiod and accounted for 14% of allnew retail outlets opened over theperiod. Tesco opened 30 additional

retail outlets over the period so thatby year-end 2007 with 100 outlets,it accounted for 17% of all retail out-lets.

SuperValu retailers, with 171 or46% of all retail outlets showed thefifth greatest rate of expansion in ab-solute terms. Up to 16 additionalSuperValu retail outlets were openedso that by year-end 2007, SuperValuhad 187 retailers (or 33% of all re-tail outlets). SuperValu therefore ac-counted for 7% of all new retailoutlets opened.

When expansion is measured interms of additional retail floorspacea slightly different picture emerges.

10 T G m F o o d F i n d e r 2 0 0 9

Planning in Retail

Expansion in retail has long been associated with success and profit. Inthis country, the race to expand has grown in tandem with the generalproperty boom of the last decade. Every spare acre has been consideredfor retail prospect, huge sums of money were handed over and grandterritorial battles were fought. But in the rush to build more stores,

many retailers may actually have lost sight of one majorcomponent of retail success, the consumer.

PLANNING IN RETAIL

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In terms of net retail sales twogroups of retailers can be distin-guished.

In the first group are Aldi, M&S andLidl, who show the greatest growthrates in retail floorspace; 660%, %,and 153% respectively. In the sec-ond group are Dunnes Stores, Tesco,SuperValu and Superquinn whoshow relatively lower levels of growthrates in retail floor space; 72%,52%, 39% and 25% respectively.

As before, growth rates need to bequalified in terms of absolute floor-space. Aldi, who accounted for 1% ofretail floorspace added 83,210m2between 2001 and the end of 2007.Aldi accounted for 10% of all retailfloorspace added by the planninggroup, placing them fifth, so that bythe end of 2007 they accounted for5% of all retail floorspace.

M&S who accounted for 1% of all re-tail floor space added 9,007m2 andaccounted for 2% of all retail floor-space placing them sixth. Lidl with13,422m2 of retail floorspace ac-counted for 3% of all retail floor-space. Between 2000 and the end of2007, Lidl added 88652m2 of retailfloorspace accounting for 12%. Lidladded the greatest amount of retailfloorspace accountings for 24%.

Relatively low rates in floorspace be-longing to retailers in the second

group needs to be put in context.Dunnes Stores showed the secondgreatest expansion in terms of retailfloorspace among retailers (com-pared to the third when expansion ismeasured in terms of numbers of re-tail outlets). Dunnes added83,150m2 of retail floorspace andaccounted for 23%.

Tesco expanded by the third great-est amount between 2000 and2007 when expansion is measuredin terms of floorspace. Tesco added82,679m2 of floorspace betweenthe period and accounted for 23% ofall floorspace.

Floorspace belonging to SuperValuretailers grew by the fourth greatestamount between 2000 and 2007(compared to the fifth when expan-sion is measured in terms of num-bers of retail outlets. SuperValuretailers collectively added57,957m2 of retail floorspace andaccounted for 14%.

In terms of floorspace, Superquinngrew by the least amount and con-tributed 2% to overall growth in re-tail floorspace. Superquinn had33,633m2 or 7% of retail space asof year end 2000 and by the end of2007, it had 42,117m2 or 5% of allretail floorspace.

Planning in Retail

Relatively lowrates infloorspacebelonging toretailers in thesecond groupneeds to be putin context.

Dunnes storesshowed the

second greatestexpansion interms of retail

floorspace amongretailers...

Dunnes added83.150m2 retailfloorspace andaccounted for

23%

F o o d F i n d e r 2 0 0 9 1 1

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Lidl opened the greatest number ofnew outlets during the review periodat 77 and expanded at a relativelyeven pace. During these years the re-tailer opened more outlets than anyof its competitors. In 2002, 2003and 2005, Lidl opened 8,6, and 8new retail outlets respectively and ineach of the other four years itopened between 11 and 15 new out-lets. A simple count of the number ofretail outlets by Lidl tends to over-state the magnitude of its rate of an-nual expansion owing to therelatively smaller size of retail out-lets.

Tesco and SuperValu also expandedat a relatively even pace. Tescoopened between five and eight newoutlets in each year over the period.No new outlets were opened in2002, while 14 new outlets wereopened in 2007.

SuperValu opened between sevenand 11 outlets in each year apartfrom 2001 and 2005 when threeand four outlets were opened re-spectively. When floorspace is con-sidered, Tesco’s rate of expansion ismore pronounced. The opposite isthe case for SuperValu, who, like Lidltend to open smaller retail outlets.

Aldi and Dunnes Stores have fol-lowed a slightly different pattern. Foreach of the initial years in the period,i.e., 2001, 2002 and 2003, Aldiopened only one or two new retailoutlets. During 2004, expansion by

the multiple picked up with ten newoutlets being opened. Aldi’s rate ofexpansion remains relatively high forthe remainder of the period.

Similarly in each of the initial yearsof the period, Dunnes Stores’ rate ofexpansion remained relatively low.For each of the years 2001, 2002,2003, and 2004, Dunnes openedone, two and three new retail outlets.It’s expansion increased rapidly in2005 when 12 new outlets wereopened. Dunnes continued this rapidexpansion during 2006 and 2007.When floorspace is considered how-ever, the level of increase in the rateof annual expansion is much greaterfor Dunnes than Aldi. Again, the rea-son for this relates to the larger sizeof Dunnes outlets compared to Aldi

Superquinn and M&S have ex-panded less than any other retailers.

Superquinn opened no new retailoutlets in three of the seven yearssince 2001 (2002, 2003 and 2006)and one or two outlets in each of theother years. M&S opened no newoutlets during 2001 and 2002, andbetween one and four outlets in eachof the following years.

The majority of new outlets openedby retailers over the period were ei-ther entirely new or built with thepurpose of replacing an existing out-lets and so required significant efforton behalf of the applicant to acquireplanning permission.

Planning in Retail

12 T G m F o o d F i n d e r 2 0 0 9

The majority of new outlets opened by retailers

over the period were either entirely new or built

with the purpose of replacing an existing outlet

and so required significant effort on

behalf of the applicant to acquire planning

permission. For example, planning

applications must comply with the relevant

area’s development plan and should be

accompanied by a retail impact assessment.

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For example, planning applicationsmust comply with the relevant area’sdevelopment plan and should be ac-companied by a retail impact as-sessment.

In a Competition Authority report onthe planning in retail, retailers wereinitially asked to provide a planninghistory for each outlet opened fromJanuary 2001 to March 2007. Anupdated second questionnaire cov-ered the period from March 2007 toMarch 2008. Specifically they wereasked to provide information on;

The number of new retail outletsopened since 2001 includes 217new builds, eight expansions, 19 re-placements, and 35 acquisitions.Tesco accounted for the majority ofboth outlet expansions (75%) andreplacements (63%). This is at leastpartially explained by the fact thatTesco acquired Quinnsworth in 1997and has since upgraded many of thenewly acquired outlets.

The SuperValu group of affiliated re-tailers account for the majority(71%) of acquisitions over the pe-riod. The reason for this lies in thebusiness model operated by the Su-perValu retailers. As we know, Su-perValu retailers are affiliatedretailers of the wholesaler franchisorMusgrave.

Expansion by the wholesaler fran-chisor and their affiliated retailers in-volves new retailers choosing toaffiliate themselves with the relevant

franchisor. Such retailers are eitherimpendent retailers or retailers thatare affiliated with a different whole-saler franchisor and who choose toswitch affiliation.

Each of the main retailers have beenactive in terms of entry and expan-sion up until the beginning of 2008when recession loomed In terms ofoutlet numbers Lid, Aldi and DunnesStores have been the most active. Interms of new floorspace Tesco,Dunnes Stores and Lidl have beenthe most active.

The pattern of expansion by retailersover the period differs somewhat.For instance, while Lidl, Tesco andSuperValu have shown relativelyeven expansion over the period,Dunnes Stores and Aldi have tendedto expand by far greater amountsand larger size of outlets, is particu-larly noticeable over the last threeyears.

As 2009 progresses, expansion hascome to a blunt halt in terms ofbuilding new stores and for some, interms of profit growth. Every sector,including grocery may be wonderingif they were in too much of a rush to‘expand’ and if success can be thusmeasured. In 2009, success will bemeasured by those who continue tooperate, make profit and see-offthese troubled times, and not as waspreviously the case, by how manyand how big their stores are.

1. The date of the initial application to construct the newretail outlet.

2. The name of the applicant;

3. The name of the local planning authority applied to;

4. The decision of the local planning authority;

5. The length of time taken for a decision of the localauthority to be delivered;

6. Whether the decision was appealed to An Bord Pleanala;

7. The name of the applicant;

8. The date of the grant decision from An Bord Pleanala; and

9. The classification of the retail outlet. Each new store wasclassified as either a ‘new build’, ‘expansion’,‘replacement’,or ‘acquisition’,

F o o d F i n d e r 2 0 0 9 1 3

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Never before have times seemed soambiguous; threatening new andever larger catastrophes with eachpassing week. Unreserved under-standing of the demands of this eco-nomic climate is the life blood ofsurvival. The time for analysing,blaming and hiding under a prover-bial pit of sand was yesterday. Todayis about punching out of the currenteconomic slaughter with compre-hensive, measured and gutsy solu-tions. And there are plenty out there.From simple customer service poli-cies to comprehensive auditing ofbusiness practices, there are alwaysways and means to improve effec-tiveness and alter even the most in-transigent company culture

It is worth reminding ourselves thatmany an empire was begun in reces-sion and those who can surf thewave will have seen off the worstpossible aspects of running a busi-ness, including spiralling overheads,inhibited lending, increased scrutinyfrom banks, and customer panic anddiscriminating consumerism. Rein-venting customer focus; removingdead weight, and staying focused onmargin and mix as well as overheadcontrol is always a good startingpoint for anyone in business - andthat should not change now.

One of the more refreshing aspectsof these times is that friendly atten-tive customer service seems to havemade a long overdue return. Likesome distant relative long emi-

grated, effective customer relationslurked in sentimental and foggymemory. As trite as it sounds, themore money we had to spend theless effective service we got acrossmany of our leading retailers. Likesome kind of Nietzschean reversepsychology, the more willing we wereto spend the worse service we got.

Good service took a back seat to list-less, under trained, nail-picking salesassistants. We learned to fend forourselves when it came to searchingthrough aisles, figuring out pricesand, the great holy grail of elusivegood service - asking for advice.Much better to sort it out for our-selves as consumers than dare crossthe personal space of a mono-tonedassistant pointing into dead air withthe words, ‘Dunno, you’ll have to askthe manager, over there’. The mindboggles.

What a difference recession makes.Take a walk down any high streetacross the country, stroll throughshopping malls and witness sales as-sistant calling out to us like sirenswilling our purses into their emptymirages of slashed prices, jaw crack-ing smiles and wide-eyed attentive-ness. As the shopping legions havemarched Northwards many had littlesympathy for their own failing econ-omy and were quick to blame the re-tailers for their own downfall. So thefirst thing that needs to be put backin shape is customer focus - the hall-mark of retailing.

LeanMachine

LEAN MACHINELEAN MACHINE

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Tine and time again we haveread the manuals which tellus how top quality customerservice will not only ensure re-tention of a customer basebut will increase the numberof consumers and the amountthey spend. In a recessionwhen bargains and discountsare galore, attention to thissort of detail can make thedifference. If a consumer haschoice, the friendlier servicewill win over their custom.Think Feargal Quinn and hisBoomerang Theory dayswhich essentially advocates ifyou treat ‘em nice, watchthem come back to you, againand again. A simple customerservice policy espousing theretailer’s philosophies and ex-pectations of service can cre-ate a culture of goodcustomer relations within anystore. Such a policy can bedrawn up and distributed

among staff. This should be followedup with regular checks on the cus-tomer service level. This, in turn canbe done through observation. Theretailer should change his routine ofcoming and going to the shop at dif-ferent times to his normal scheduleto make sure policies are being im-plemented.

Good customer service policy shouldinclude how customer enquires aredealt with, if staff know where aproduct is or the price of an articleand the length of time a customertakes to be served. A retailer shouldhave adequate staff for when queuestraditionally form; and pricing pro-cedures should be in place for fastmoving items. All practical, allstraightforward, even obvious, butoften despairingly absent and over-looked in many shops. A customerservice survey is an effective way toexamine and implement the bestcustomer relations possible. Sometypical guidelines include;

1. Provide a written policy on cus-tomer service in your shop, to allstaff. Outline the appropriate rela-tionship between your staff and cus-tomers - friendly, efficient andaccurate.

2. Record the date you gave the pol-icy to each person.

3. Regularly check in on customer

service on the shop floor.

4. Note the time and date of yourobservations over the period of thesurvey, for example, over a fortnight.

5. Conduct an appraisal of servicewith regular customers.

6. Welcome all feedback, positive aswell as negative

7. Make sure to act on any observa-tions . Conduct staff meetings to out-line any findings. Staff will beunmoved if this is not regularly car-ried out.

There are also some basic ruleswhen it comes to cementing positivecustomer relations. These includehow to deal with complaints, how tolisten, be sympathetic, ask questionsand how to apologise.

Regardless of the size or type ofbusiness, there is always a simpleway to address the issue of com-plaints. One thing that is certain isthat complaints will happen to thebest, no matter how cautious one is.Some may be real, some may beimagined but they all must be han-dled well. Complaints may be awk-ward but they are also anopportunity to correct unseen nega-tives, learn for the future but aboveall must not be dismissed. Excusesand being fobbed off are the lastthing an annoyed customer wants tohear so patient empathetic listening,compensation where necessary andno quibbling will ensure all arehappy.

Most importantly if there is a com-plaint, the first priority regardless ofthe situation must be to apologise,unreservedly. In other instances,never argue over replacement or ex-changing and always offer a full re-imbursement.

Taking things to another level, un-derstanding who your customer iscan make a difference. Looking be-yond the shop walls at the sur-rounding catchment area gives anunderstanding of what the customerneeds. Socio economic and demo-graphics can be accessed throughthe Central Statistics Office and canassist which product mix should re-flect the surrounding area. For in-stance location can determine

LeanMachine

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whether there will be highincidences of pedestriantraffic. If there is a schoolnearby, then children andyoung people will have cer-tain needs. Carrying out asurvey of the local area, pop-ulation, demographics andsocio economic breakdowncan be helpful data that cangive one retailer the edgeover another.

Understanding what moti-vates the consumer is one ofthe most valuable aspects ofcarrying out such research.Considering what the con-sumer wants once inside theshop is a valuable way to or-ganise floorspace to the op-timum advantage for salesand profit. Thus will reflect

tastes and needs as well as whethercustomers shopping experience ismotivated by basic need, self-rewardor simple habit.

Implementing change on a largerscale can be a more complex chal-lenge and often outside help is re-quired. Not being able to see thewoods for the trees might be an oldchestnut but entrenched culturesand archaic dogma are extremelyprevalent in multinationals and canbe difficult to wean out. One com-pany which takes on these chal-lenges on behalf of company’s isSales Refocusing which works withorganisations and through varioustemplates enables change in coreareas of business. Sales Refocusingtackles key areas which can turn acompany’s fortunes around and inthese deteriorating economic times,such services are in steady demand.

Under the company’s product Tactix,it highlights important issues such asassessing the right customers withthe right products and services; hav-ing the right people doing the rightjobs and planning a deliverablestrategy.

Sales Refocusing has dealt withmany multinationals and its tem-plates can be effectively imple-mented. Taking one case study is aninteresting way to see how theprocess works. In this case, a multi-national food processing companywanted to put a sales process inplace to allow one of its subsidiariesto achieve market share increasesfor their branded products in as costeffective and professional a manneras possible. The products competedin a very competitive and price sen-sitive market.

Sales Refocusing carried out an indepth and confidential audit of thesales and distribution functions thatwere in place including field units

with sales teams and man-agers, marketing, IT, financeand production. Distributionefficiencies were analysed aswell as needs based on in-terviews carried out with aselection of customers.

The results were fed back tothe senior managementteam and it was agreed toadopt a number of recom-mendations that were putforward. Sales Refocusing fa-cilitated the re-structuring ofthe sales and distributionprocess. The areas that werecovered included customerbase management, amalga-mation of sales and distribu-tion into one core unit andupgrading of distributionprocess, role of field sales

manager restructured, van-selling ef-fectiveness, route servicing cost con-trols, a modern channelmanagement approach and effectiveselection and recruitment.

The results of the project included anincrease in sales in excess of set tar-gets, the reduction of sales servicingcosts and overheads and most im-portantly customers expressed sat-isfaction with the new service andsystem.

Deciding to tackle solutions in atough market place is the first stepand an important one. Weeding outproblems is a tedious business butan essential and ultimately reward-ing one. These recessionary timescall for tough assessments of busi-ness and clear ways forward. Whileit won’t guarantee a safe passagethrough the rough ride, it can keepone afloat.

LeanMachine

Deciding to tackle solutionsin a tough marketplace isthe first step and animportant one.Weeding out

problems is a tedious busi-ness but an

essential and ultimatelyrewarding one.

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The challenging economic timeshave predisposed the average shop-per to obdurate prudence. This goesfor the manufacturer too. Cuttingback, culling budgets; all knee jerkreactions, yet immediate solutions.However, history has taught us thatlong-term solutions to mendingglobal economies involves spending,investing, and developing. Undoubt-edly this goes for brands. Althoughtry telling that to skittish brand man-agers, dry heaving over flaccid salesfigures.

Two things can happen to a brandduring a recession; weaker brandscan be effectively weeded out andstronger ones compounded. Con-versely, cheaper own label brandsappeal to panicked customers ifthey’re trusted, whereas more ex-pensive branded goods becomeoverlooked. In a recent report, onebrand market expert commented;

“There is an opportunity for allbrand strategists and marketers tolead and grade by example brandingcarries these companies and prod-ucts through even the bad times.”Another expert added;“Beyond quality and sheer marketweight, brands must be ever more

relevant, trustworthy and flexible.They must constantly be in tune withconsumers’ values, evolving needsand lifestyles.”

Despite this sensible advice, ironi-cally marketing budgets are oftenthe first to get the hatchet duringtough economic times. As a conse-quence, brands risk becoming lessvisible at a time when they need tostand out. According to HarvardBusiness School Professor JohnQuelch;

“Instead of cutting back the marketresearch budget, you need to knowmore than ever about how con-sumers are redefining value

and responding to recession. It iswell documented that brands that in-crease advertising during a reces-sion, when competitors are cuttingback, can improve market share andreturn on investment at a lower costthan during good economic times.”

Ultimately, it pays to advertise dur-ing a recession , according to Amer-ican Business Media (ABM) thereare a number of points worth bear-ing in mind when it comes to adver-tising during down times. The

organisation refers to a brand as a‘share of mind’ ;

1. If a company fails to maintain its‘share of mind’ during an economicdownturn current and future salesare jeopardised. Maintaining ‘shareof mind’ costs much less than re-building it later.

2. If during a recession you maintaina strong advertising presence whileyour competitor cuts back budgetyou will automatically increase your‘share of mind’.

3. Advertising through both boomand bust sustains necessary brandrecognition.

4. Maintaining a company’s adver-tising budget during recession willgive the image of corporate stabilitywithin a chaotic business environ-ment and give the advertisers thechance to dominate the advertisingmedia.

5. Economic downturns regards theaggressive advertiser and penalisesthe timid one.

6. During economic downturn, astrong advertising / marketing effort

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Branding in a Recession

BRANDING IN A RECESSIONIt is interesting to consider if branding matters at all during economic meltdown. In a competitivebusiness environment, having a strong brand identity matters a lot. For the last ten years, Irishbrands have been constantly innovated, polished and tweaked so that when consumer’s hear thename of a brand memories pop up and influence their choice. In recent times consumer’s own

motivations have also been modified to deal with the cold, transparent veracity of recession over thewhimsical aspirations of more buoyant times. This has manifested with a renewed interest in cheap

own label products in supermarkets and estrangement from the bigger well known brands,their visceral promise languishing unsought in shelve dust.

1+1 11= THE MATHEMATICS

OF COLLABORATION IS

NOTHING LESS THAN MAGIC

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enables a firm to solidify its cus-tomer base, take business away fromless aggressive competitors and po-sition itself for future growth duringthe recovery.

The key is to look at the budget asan investment not an expense. Mar-keting firm About.com says that cut-ting marketing budgets is thebiggest mistake brand owners canmake during a recession and advicesadopting its SMART strategy. Thisinvolves;

1.Strategise2.Maintain3.Access and allocate budget4.Research customer thoroughly5.Target and reach out to them.

The fact is that many of the world’sfamous company’s have weatheredeconomic storms by implementingmany of these tips. For example,Procter & Gamble, during the GreatDepression, pushed Ivory Soap likenever before. In 1933, in the shadowof the Depression, Kraft launched itsiconic Miracle Whip. Intel, during the1990-1991 economic downturnpushed the campaign ‘Intel Inside’with a huge marketing spend. Wal-Mart; during the 2000-2001 reces-sion launched its ‘Every day lowprices’ campaign.

In February 1930, just four monthsafter the stock market crash, HenryR Luce launched an audacious newmedia product called ‘Fortune Mag-azine. Not only did he have the gutsto launch a new product in such avulnerable economic environment,he also launched an expensive newproduct. At the expensive for thetime cost of $1 per issue, Lucelaunched with 30,000 subscribers.By 1937 he had over 500,000 sub-scribers.

According to Branding for Dummies,a book penned by Bill Chiaravelleand Barbara Findlay Schenk, brandsare promises that consumers believein. Brands create trust and emo-tional attachments. They foster rela-tionships between customers andproducts that withstand pricingwars, rise above new competitorsand overcome rare lapses in productor service excellence. All of whichrepresent qualities consumers arecurrently in desperate need of.

When we see certain brands we in-stantly think of certain things;Barry’s Tea means a quality cup ofcomfort to many people, Magnumice cream means an indulgent treat;Denny’s rashers and sausages meandown home cooked comfort, DunnesStores means Irish and reliable; Su-perquinn; quality and posh, Aldi,cheap and slashed and so on. So inmany ways multiples own-brand la-bels are associated with their super-market owners, Tesco, variety goodvalue, Dunnes reliable Irish, Su-perquinn quality, upmarket. Brandsare big business because they makeselling easier in person or online.People prefer to buy from companiesthey know and can trust and brandsput forth that assurance.

The fact is that without a brand, youhave to build a case for why you de-serve the consumer’s business everysingle time you get ready to make asale.

While brand owners are closing thedeal, those without strong brandsare still introducing themselves. Ulti-mately brands that are preferredand valued by consumers deliver along list of business benefits thattranslate to higher prices, higherprofit margins and higher ownervalue - all of which are invaluable intimes like these. When the dust set-tles on the present economic out-look, and consumers get back into aspending rhythm, they will return towhat they’ve known and relied upon.That’s why now is the time to polishup the brand to effervescent levels.It is worth emphasising why a qualitybrand works. Fundamentally, con-sumers are willing to pay more tobuy brands because they believethat they deliver outstanding bene-fits. They stay loyal to brands, buy-ing them more frequently, and ingreater volume. Retailers providebrands greater store visibility be-cause they know that brands drivesales and result in higher store rev-enues. Brand owners don’t need tolaunch new offerings from scratch,they grow their businesses by lever-aging their brands into product andline extensions.

Moreover brand owners find it eas-ier to attract and retain good em-ployees because applicants believein the quality of the workplace basedon advance knowledge of the calibre

of the brand. They run more efficientoperations because they align all de-cision with the mission, vision, andvalues that underpin the brandpromise.

However, despite this, recent historyshows how often companies burytheir head in the sand. Huge multi-nationals, corporations and banks;in other words some of the bestknown brands around the worldhave been brought to the brink, byamong other things, ignoring the ob-vious and leaving things to late.Never before has it mattered asmuch to have some pre emptivestrike up one’s sleeve.

Hopefully most organisations under-stand that investment and market-ing in a brand is not just somethingdone in the good times, it is an in-dispensable advantage, a hardcoreasset. Ed McDonald, ceo, Associa-tion of Advertisers recently pointedout that those with innovation andcreativity will survive. He said;

“There will also be a focus this yearon expecting agencies to not justtalk integration but to be able to de-liver. So you need to be able to sit ina room with people who understandthe internet, media relations, adver-tising and so on and expect peopleto be at the table who can talk all ofthose things in a mature and sensi-ble way. So experience and expert-ise will come to the fore whichultimately favours bigger agenciesbecause big groups that have a pub-lic relations company or a digitalcompany are seen as more comfort-able in this space. So it’s a spread ofexpertise around different channelsto market because clients don’t wantfour different communications part-ners especially when budgets areunder pressure.”

Whether its recession or a failure inquality sometimes bad things canhappen to good brands and thereare certain one-fits-all measureswhich owners can take. In spite of amillion good intentions, brands canrun into trouble as a consequence ofanything from bad management tobad luck. When they do the situationrequires action and fast. Brandingfor Dummies suggests that beforebrand owners plan how to handlebrand threats they need to take timeto plan how to avoid them.

Branding in a Recession

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In other words, the best offence isdefence. This involves two essentialsteps. Firstly identify potentialthreats. Identify the kinds of threatsthat may take a toll on a brand’s rep-utation. Then assess the likelihood ofthose threats actually occurring,These can include everything from alapse in corporate behaviour, to asudden departure of a high profilecorporate leader, product failures, toonset of worldwide recession. Forany threat that appears to loomlarge, work in advance to reduce vul-nerability by establishing systemsand protective actions that steeryour organisation away from poten-tial risks.

Secondly, prepare a brand crisismanagement plan. Prepare a plancomplete with assignments for whowill lead and serve on the crisis man-agement team, what communicationprocedures will be followed, and thesteps that will get a clear, consistentmessage out to all afflicted audi-ences.

Taking the proverbial head out of thesand and working out worst casescenarios brands may face, beforethey face them is worthwhile.Follow this with how significantlyeach threat could affect the strengthof a brand, business and reputation.These are identified by taking a fewcareful steps;

1. Consider potential brand threatsthat may negatively impact yourbrand image.

2. Rank the likelihood of each brandthreat occurring. For instance, a pri-vately held service business with noshareholders and no production fa-cilities has a low likelihood of en-countering a threat from a lapse ofcorporate behaviour. If that sameservice business is headed by anowner with a high profile, jet setlifestyle, however, the likelihood of areal or perceived lapsed of personalbehaviour may be high.

3. Determine which of your brand at-tributes would be most affectedshould your brand encounter eachpotential threat. For example, if yourbusiness has to deal with news of aproduct failure, brand attributessuch as safety precision, craftsman-ship, or quality would be affected.4. Rank the impact of each attributethat may be affected on the overall

strength of your brand. For example,if your brand is primarily known forits safety record and suddenly sus-tains a safety lapse, the impact onbrand strength would be high.

It is recommended that brand own-ers take a straight forward approachto owning up to and addressingbrand threats. Where you knowthere is a risk, admit it. Trying towish it away is never a decent strat-egy. If you’re vulnerable, admit it. Ifthe public places high confidence inyour high -profile but aging leader,admit it. Regardless of the threat, ifit’s real and looming shed light on itand begin examining how best tominimize the threat.

Gather a team to discuss risks. Forma brand threat management com-mittee to consider potential threatsfrom a number of viewpoints. Involvenot just brand managers but alsomanagers from customer service,production, financial managementand other departments. Discusswhat kind of events might trigger thebrand threat and how each can bepre-empted.

Take preventative action. If thethreat is real and the risk is high, ad-dress it head on. Enact new policies.Install new procedures. Establish asuccession plan. Create evacuationprocedures. Address high-risk be-haviours. Take whatever steps arenecessary and effective to admit andreduce or erase vulnerabilities thatcould damage your brand image inthe future.

If the worst happens and your brandreputation is attacked by internal oroutside forces, be ready to controlthe news, tell the story, remedy theproblem, and assure the public thatit won’t happen.

Public relations speak about a‘golden hour’ during which you cancontrol the story and move quicklyto save your brand image from dis-aster. Yet too many companiesspend the first hour following abrand threat wringing their handsand trying to figure out what stepsto take. By the time they’re ready tomove, the story is out of their handsand being told by others, often withinaccuracies and from perspectivesthat damage the brand even further.Case in point - Irish banking institu-tions. We witnessed overnight their

excessively risky business choiceswhich were smeared across everynews outlet causing almost irrepara-ble consumer confidence and share-holder panic.

Commit to developing a brand crisismanagement plan that includes thefollowing components. Firstly, who’swho in your management team, in-cluding who will serve as the primaryand secondary spokespersons, whowill provide legal or technical advice,and who will help staff the plan.

Whom to contact in the event of acrisis. Prepare a list with home, of-fice, fax, mobile, email addressesand mail addresses for top execu-tives and managers, business and fi-nancial partners, media contacts,employees, key contacts in the com-munity, industry and distributionchannels, key customers.

Know what to say including whathappened, what you’re doing tomake it right, and how it will be pre-vented in the future - all in termsthat describe your concern for thepublic and not simply your accountsto minimize corporate or brand loss.Remember you can’t plan your exactmessage in advance, but you canplan what your message needs tocommunicate.

Figure out what your strategy is, in-cluding plans for releasing the news,establishing and staffing physicaland online media centre, handlingthe gathered interest through ex-panded and even back-up phoneand online capacity, and providingongoing updates regarding howyou’re working to remedy the prob-lem and prevent it from reoccurring.

At the end of the day, whatever theeconomic situation of the day, to winand maintain a slot in the con-sumer’s mind, a brand needs tobegin and remain credible, competi-tive, current, and relevant to cus-tomer wants, needs and interests.That means tuning in to market con-ditions, consumer preferences, andcultural trends not only when estab-lished on a regular basis but as abrand ages. This all involves invest-ment, creativity and vision. There isplenty of it around in Irish compa-nies, we just have to remember touse it, sooner rather than later.

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The Irish baby care market is worth an estimated €77m with growth of 15%. Premium products andliquid formats remain significant segments of this category. Other important segments include WetMeals, Fruit Pots and Growing-Up Milk. The Wet Meal segment grew by 10%; the Dry Meal segmentaccounted for 33% which represents a value of €7.5m; Fruit Pots have a value of €4m. Finger foodsare an increasingly important segment and enjoy consistent value increase of 12.7%. The babymarket continues to thrive in Ireland echoing our healthy birth rate which is one of the highest in

Europe. In 2008, births were recorded at 14.22 per 1,000 people.

CATEGORY: Baby

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Increasing health awareness amongconsumers and the changing role ofwomen is taking expenditure onbaby food high. The global babyfood market is growing rapidly, par-ticularly in the emerging economies.However, North American and West-ern Europe account for the majorshare in total revenue. For future,

emerging countries like Russia,Brazil and Poland represent themost attractive markets for the babyfood industry. The Irish baby caremarket enjoys a value of €77m andcontinues to show growth of 15%.

The global organic baby food indus-try is expected to reach $2.26bn bythe end of 2012 becoming thefastest growing segment in theemerging countries. High prices andthe monopoly of big players remainsa major challenge for the baby foodindustry in these regions.

The market is driven by the newproduct development and seriousmarketing of several major players.What is unique about the babyfoodmarket is that it is not consumed bythose who buy it. This in itself cre-ates an interesting marketingdilemma which results in productsadhering to the same trends as adultfood. Consequently, a strong brandreputation and quality are the prin-ciple market considerations and rideroughshod over the issue of price.Irish research shows that 84% ofparents will do their entire shop else-where if the size of product or baby-food brand they are looking for isnot available in store.

The average Irish baby goes througha hefty 4,500 nappies before toilettraining; hence nappies continue tobe the main baby care product in theIrish market. Other key products in-clude sterilising fluids like Milton andantiseptic stalwarts such as Su-docream. In the baby care marketone of the main considerations forparents is that they are buying thebest possible products which aresafe for baby. Brand loyalty feedsstrongly into this consumer consid-eration.

Although new product developmentscan take off strongly in the market,reverting to more traditional meth-ods is increasingly relevant and pop-ular. For instance baby wipes haveproved popular with Irish parentsbut there is a growing preference byparents to use cotton wool instead ofwipes. Research shows that over60% of parents said they would pre-fer to use cotton wool as part of theirbabies cleansing routine.

Most of the growth in the baby care

category is coming from finger foodand baby drinks and some reportssuggest it is often the smaller, newer,more artisan baby food companieswho are leading the establishedbrands in creating products that sat-isfy parents and their desire forhomemade food. Consequently pre-mium is becoming mainstream, withthe traditional cans and jars, saucepouches, chilled ready meals and or-ganic recipes.

Healthy eating is one of the majorgrowth drivers of the baby food sec-tor. Health is growing in importanceto parents as they become increas-ingly aware of nutrition and there isa specific focus on 100% natural in-gredients and no-added salt andsugar. Working and busy parentshave a need for convenient, healthyalternatives to home cooking whichthey feel good about feeding to theirchildren.

Meanwhile finger foods have experi-enced strong growth driven by ageneral increase in older baby feed-ing, convenience and the need to‘feed on the move’. Birth rates arebooming and the trend is reflectedin sales of baby related products.

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The market itself has so many prod-ucts intended for separate needsthat there is huge scope for innova-tion. However, many retailers, par-ticularly c-stores have under-developed baby care sales.

Market analysts predict the greatestopportunity for growth in the toddlerfood segment is in the chilled cabi-net - mimicking fresh, home cookedfood. Healthy finger foods are expe-riencing growth, particularly thosemade with 100% natural ingredientsand no-added salt or sugar.

Many are simply put off by the ideathat the multiples have it sewn upand the sheer scale of productranges which require space and timeto merchandise.

It is true to say the multiples have agood grip on the baby care markets.Multiple retailers command an esti-mated 45.6% share of the baby caremarket; 70.3% of the nappies mar-ket; and 79% of the baby food mar-ket. All multiples are experiencinghuge growth in baby categories asthey extend ranges.

However there are ways and meansfor smaller c-stores to exploit themarket for themselves. First it isworth considering that analysts pre-dict convenience related products

will overtake nappies in terms ofgrowth for 2009, as it is currentlyunder-traded. Parents are lookingfor quick fix solutions to provideclose to a one-stop-shop whether itspre-prepared baby food, snacks ordrinks.

Many smaller retailers are seeingthe advantages of strategically de-veloping this category in their storesand experiencing growth conse-quently. For c-stores there is hugeopportunity, say market experts, forexploiting gaps in the market. Takingone case in point, a c-store retailerdecided to expand his baby productsoffering in his stores and experi-enced a 20% growth.

The first thing he undertook was ob-serving the competition to see whatthe multiples were doing. The resultwas larger bays and a wider offering.He decided to give a maximum two-metre bay with 6 shelves to babyproducts and in smaller stores, onemetre with two shelves with linesacross baby food, nappies and babycare, toiletries, milk bottles and bibs.The latter are slow sellers but the en-tire range has to be offered, or peo-ple will go elsewhere, according tothe c-store retailer. He points outthat it is about more than just sales.

“Baby products are never going to

deliver the turnover that other linesoffer but I’m trying to push theboundaries. It’s about credibility.”

This retailer seems to have hit thenail on the head in terms of credibil-ity. Market experts point out certaincriteria which retailers and manufac-turers should bear in mind. The keyelement is getting the productsright. Research shows that parentswon’t switch brands if they can’t findwhat they’re looking for, they’ll sim-ply go elsewhere. It is also worthpointing out that parents aren’t justlooking for a brand but for a lifestage as well. Mothers with toddlersfor example, will be looking for a va-riety of age groups, meal occasionsand flavours.

Effective merchandising is essentialto the baby care category. One ex-pert recommends a one metre bayof baby care to have nappies, wipesand toiletries all together, and placeit in an aisle where parents can ac-tually see it and access it with abuggy. It is important for the retailerto cater for the ‘distress purchase’.For nappies, retailers should stockpacks in as large a space as possible;in toiletries there should be a rangeincluding nappy cream, cotton buds,oil, powder and wipes while milksshould include first-milks and follow-ons, if space allows.

CATEGORY: Baby

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Research shows thatparents won’t switch

brands if they don’t findwhat they are looking for,they’ll simply go elsewhere.It is also worth pointing outthat parents aren’t just

looking for a brand but fora life stage as well.

Mothers with toddlers forexample, will be looking fora variety of age groups,meal occasions and

flavours.

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CATEGORY: Baby

As well as meals to cover all needs,there should also be a range ofjuices. If retailers have space forhealthcare and accessories, this caninclude bottles, soothers and toddlerfeeding accessories. Although acces-sories are of relatively small retailvalue, c-stores tend to trade betterin this area.Heinz has built on its commitment toprovide high quality food for every-one through the years developing arange of baby food and productsfrom its Farley’s Rusks brandthrough to the Heinz Baby Foodsand Mum’s Own range of Mum in-spired meals.

Heinz Baby Food is triple tested forquality, safety, purity and nutrientvalue, so parents can trust in itsgoodness. There is no-added salt inany of its baby range products andthe company is also launching arange of organic cereals and juices.

Cow & Gate produce a range of babymilks suitable from newborn to tod-dler. These range from Complete Nu-trition first infant milk, from

newborn, and Complete Nutritionfirst infant milk for Hungrier babies .The company also has Cow & GateComplete Care growing up Milk,which has been specially formulatedto support toddlers healthy growth,brain development and learningskills.

All of the Cow & Gate Completerange are tailored to each stage ofbabys’ and toddlers’ growth provid-ing key nutrients, healthy digestionand supporting the immune system.

Cow & Gate is also leader in OrganicJar meals with an estimated 40%share. Its range of fruit purées calledFrutapura are also a hit with par-ents. It has eight varieties in itsrange including Fruit Compote,Apple Apricot & Strawberry, Apricot& Banana, Peach & Strawberry. Fru-tapura is made from 100% purefruit, contains only natural ingredi-ents and is enriched with vitamin C.The range is designed for babies andtoddlers from four months to threeyears.

The dried food market is led byMilupa and accounts for an esti-mated 74% market share. The

Milupa brand of baby food is strongwithin the dry packet meals marketwhere it claims almost two thirds ofthe Irish market for dry packetmeals. The dry packet meals productportfolio is divided by baby rice, abreakfast range, a savoury rangeand a dessert range aimed at babiesaged 4-6 months.

Aptamil First, Aptamil Extra and Ap-tamil Forward are the varieties avail-able from Milupa Aptamil whichhave helped the brand claim37.8%(source AC Nielsen: MultiplesMAT to 25.01.9) of the Irish babymarket. The Aptamil range is forti-fied with IMMUNOFORTIS and is aunique blend of prebiotics and LCPs(long chain polyunsaturated fattyacids) to help support the immunesystem. Aptamil also has a range ofGrowing up milks to help continuesupporting the immune system to 3years of age.

SMA Nutrition. Its range includesSMA Gold, SMA White, SMAProgress, and SMA Special Feeds.SMA Gold is an easily digested for-mulation, suitable from birth. It iswhey-based infant milk that providesbaby with all the nutrients required.SMA Gold has an improved proteinprofile. Alpha-protein is a key proteinin breast milk and the level of thisprotein has been increased in SMAGold to bring it closer to the proteinprofile found in breast milk.

The Players

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CATEGORY: Baby

SMAWhite is nutritionally-complete,curd-based infant milk that is spe-cially made for hungrier babies. It issuitable from birth.SMA Progress isthe same great follow-on milk, whichhas been specially developed to pro-vide the important nutrients yourbaby needs during and after wean-ing. It is suitable from 6 months to 2years as part of a varied weaningdiet.

From the initial precious days to toi-let trained toddler, as parents’ needschange Pampers will have the rightnappy. From nappies to pants towipes, Pampers range includes awide range including New Baby, Ac-tive Fit, Easy Up Pants and Feel ’nLearn. 3-Way Fit from Pampers Ac-tive Fit range is perfect for babieswhether they are into crawling, shuf-

fling bouncing or rolling. One of itsstand-out products is Pampers Babywipes which contains 95% purewater. Perfume-free Sensitive Wipescontain baby essence andchamomile – renowned for its calm-ing properties – to soothe babies’senses.

Huggies is one of the country’s mostpoplar nappy brands and leads inthe ‘pants’ category. Huggies rangeincludes Huggies Super-Flex Nap-pies which has an improved wasteand fastening feature that is ‘fivetimes stretchier’ than the leadingbrand. The leading potty trainingpant on the Irish market is HuggiesPull-Ups-Potty-Training Pants. Therange is available from medium toextra large sizes in boys and girl va-rieties. Also in the range is Huggies

Little Swimmers, which are dispos-able swim pants, a legal requirementin Irish swimming pools. Huggies Lit-tle Swimmers protect the child with-out swelling in water like a nappywould do.

In the finger food sector of the babycare market Liga is a familiarfavourite and market leader. TheLiga range, which includes Liga Orig-inal, Liga Junior, Liga Snack Packsand Liga C, has been serving the nu-tritional needs of children in Irelandfor over 50 years. Liga is an energyrich infant food fortified with vita-mins and minerals, reduced salt andcontains no artificial colours orpreservatives content. The range in-cludes Liga Original, Liga C, LigaJunior and Liga Snack Packs.

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The vast majority of NPD (new prod-uct development) and marketingcampaigns have stuck fast to themessage of health and indulgence tothe extent that both are now primesub-sectors forging ahead on the su-permarket shelves.

The same dichotomy of health andindulgence is being applied by con-sumers in relation to cakes. The Irishbiscuit market has an estimatedvalue of €240m, with a volume of35 million kilos.

The Jacob Fruitfield food group hasan enviable product portfolio ofmany leading brands but it is per-haps best known for its array of well-loved and family-favourite biscuitbrands. These include among others,Fig Rolls, Mikado, Kimberley, Co-conut Creams, Elite, Chocolate Gold-grain.

Fig Rolls has been Ireland’s favourite

biscuit range for over 100 years andcontinues to remain at the forefrontof innovation and baking technolo-gies. This particular biscuit brandhas been lulling consumers with itsunmistakable combination of thefreshest figs wrapped in soft goldenpastry and baked to the secret Ja-cobs family recipe. In addition, FigRolls are 92% fat free and have only60 calories per biscuit.

Recent innovations to the fig rollbrand portfolio was the launch of FigRolls Bar. The Bar format providesfig roll lovers with a healthy, conven-ient and on the go treat to suit thedemands of today’s hectic lifestyles.

Jacob’s Mallows include Kimberley,Mikado and Coconut Creams. Allthree mallows are unique and havetheir own individual character.Jacob’s Kimberley comprises twocircular ginger based biscuits thatsandwich a thick layer of whitecreamy vanilla mallow doused insugar. Mikado dates back to 1888and is a similar combination of mal-low and biscuit. The difference isthat Mikado is created by insertingten deposits of mallow atop a vanillabased biscuit with a strip of rasp-berry flavoured jam, all coatedwith a vanilla coconut sprinkle.

Coconut Creams were launchedin 1890 and features two vari-ants in a pack, pink and white;the base of the coconut creamsis circular in shape and is dec-orated with a large deposit ofmallow doused in coconutsprinkles.

Jacob’s Elite range offers con-sumers a diverse selection ofindulgent tastes and textures

and symbolises the essence of aquality chocolate biscuit. Elite is thelargest brand in the luxury end ofthe Irish biscuit market. All biscuitsin the Elite range are fully coated inchocolate and include several indi-vidually wrapped options such as TeaCakes and Chocolate Dreams.

One of Ireland’s leading biscuitbrands, McVitie’s, has halved thesaturated fat content of three of itsmost popular products - McVitie’s

Changing eating habits and widespread promotion of a healthy lifestyle has seen the biscuit marketstruggle to maintain volume sales. However, before the dust settles on such a future, manufacturershave been quick to respond to the altering nature of consumer eating habits by injecting a dualmessage of health and indulgence – the two trends which consistently drive this market in Ireland.The health and Wellbeing segment of this market has seen a rise in the number of products claiming

‘lower fat’ and ‘lower calorie’ options.

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CATEGORY: Biscuits & Cakes

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Digestives, McVitie’s Hob Nobsand McVitie’s Rich Tea as a resultof a €6.6 million investment andthree years of research and devel-opment with no compromise intaste.

McVitie’s is the first biscuit manu-facturer to make such significantchanges to its key brands. Be-cause of McVitie’s commitment totheir customers, they not onlyhalved the amount of saturated fatin some of their top selling McVi-tie’s biscuits, but kept same greattaste. To ensure the taste and tex-ture of the biscuits remain as greatas ever, thorough sensory testingand consumer taste tests werecarried out.

Jan Boyle, United Biscuits Market-ing Controller Ireland, commented“United Biscuits have strived tosignificantly decrease the levels ofsaturated fat in the McVitie’s rangein order to provide a healthy snackoption for our customers.Most im-portant, however, is that we’vesuccessfully kept the same greattaste”

McVities has the Jaffa Cakes rangein its portfolio. The original recipe forMcVities Jaffa Cakes is a closelyguarded secret, the combination oflight sponge, dark chocolate and or-angey bit in the middle was first cre-ated over 60 years ago. The goodnews is there is only 1g of fat per bis-

cuit. McVitie’s introduced two newflavours to its Jaffa Cake range –Blackcurrant and Lime. Based onconsumer research, McVitie’s foundthat consumers claimed they would

buy into Jaffa Cakes more fre-quently if there were more flavoursavailable.

McVitie’s Go Ahead range includesa 6-pack of Granola, Almond, Raisin& Cranberry and Granola Apple aswell as the tasty flavour Tropical Yo-gurt Breaks.

McVitie’s Light range includes LightMilk Chocolate Digestives (300g),

Light Hob Nobs (300g) and LightRich Tea (300g) joining the popularLight Digestive (400g).

The vast majority of NPD (new product development) and market campaigns have stuck fast to themessage of health and indulgence to the extent that both are now prime subsectors

forging ahead on the supermarket shelves.

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CATEGORY: Biscuits & Cakes

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Burton’s Biscuits includes a range oftasty treats. Among them are Toffy-pops recently extended with theToffypops Bars, which are aimed asa lunchbox treat. Toffypops are avail-able in packs of ten; each bar is in-dividually wrapped and has thesame delicious formula as Toffypops,with a soft caramel filling on a short-cake biscuit enrobed in milk choco-late.

Burton’s Maryland range has beenperforming well of late. Maryland’sSpecials was introduced in 2006 totrade-up existing cookie customers,with stylish packaging and real fruitingredients. Burton’s has quickly re-sponded to the growing demand forsnack packs allowing both portioncontrol and on the go dining with thelaunch of products like Maryland’scookies and Milk Snack Packs.

Flahavan’s Flapjacks are prepared bycombining cherry & sultana fruit

pieces or Belgian chocolate chippieces with the natural goodness ofFlahavans oatflakes to give thissnack a deliciously crumbly oaty tex-ture. Each flapjack contains over40% oatflakes which have long beenrecognised for their health benefits.As each one is individually wrappedthey can be simply popped in alunchbox or bag for a mouth-water-ing snack whenever or wherever.The Irish Flapjack & Muffin Co wasestablished in 1997 in Dublin and isnow a leading supplier of snacks tothe Irish market. The company has arange of muffins, cookies and flap-jacks which it produces from qualityingredients at its busy Dublin facility.Many of its products are wheat-free,preservative-free and are low intrans fatty acids.

Gateaux is the number one sellingcake brand in Ireland. Old familiarssuch as Gateaux Swiss Roll andGateaux Logs are constant big sell-ers as are Gateaux’s Sponge Cakes,Queen Cakes and Battenbergs.Gateaux successfully introduced apremium range of Luxury Swiss Rolls

to complement the existing collec-tion which is available in two mouth-watering flavours - chocolate andraspberry.

Cadbury’s Chocolate Cake is thenumber one brand within the ‘snack-ing’ cakes market. Cadbury mini rollsare a favourite treat among childrenwith generous amounts of Cadburymilked chocolate combined with lay-ers of moist sponge and cream. Cad-bury’s Chocolate Cakes relaunchedthe Cadbury Cake Bars in the popu-lar Orange, Mint and Fruit & Nutflavours.

Renowned for its ‘exceedingly good’Apple Pies, French Fancies and

Slices, Mr. Kipling is the brandleader in the small cakes sector. Itsrange includes the ‘Delightful’ rangeof ‘lighter’ cakes and slices with lessthan 10% fat. The range includesLemon Slices, Cherry Blakewells,Chocolate Slices and Apple slices.

Kelkin’s extensive range of savouryand chocolate rice cakes are ideal atany time of the day. Kelkin’s Choco-late Coated Rice cake range offersconsumers nutritionally beneficialtreats. According to Kelkin’s consult-ant nutritionist, Aveen Bannon,treats should not be out of boundsfor children and she recommendsKelkin Chocolate Coated Rice cakes.

... manufacturers have been quick to respond to the altering nature of consumer eating habits byinjecting a dual message of health and indulgence - the two trends which consistently drive

this market in Ireland

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Consumer surveys and data aretelling us that dieting is no longerthe exclusive domain of women; menare also feeling the pressure to eathealthy. Consequently, healthy,wholegrain, sugar free bread vari-eties are doing well at the moment.Conversely, on the flip side there hasalso been a huge interest in ethnicand gourmet varieties which areaimed at the premium end of themarket. Focaccia and various inter-national style breads is a standardfeature on most fresh bread shelves.

The Irish bread market has an esti-mated value of €420m. Experi-mentation with new products is setto continue, with greater variety now

expected by Irish consumers. Themarket is quite well developed,which is due largely to the high qual-ity and freshness of product offeringavailable on-shelf. Irish consumersfavour bread for its versatility, con-venience, taste, value for money, va-riety and general nutritional content.

Most of the growth in the breadmarket has been attributed to thewrapped bread sector which has ex-perienced a growth of 6%, and thewholemeal bread sector. The latterhas enjoyed a value growth of an es-timated 17%.

The sliced pan sector accounts for anestimated 60% of the overall mar-

ket. The French bread market is be-lieved to have enjoyed a growth of40% over the last five years, thankslargely to the introduction of in-storebaking.

The Irish sector has experienced adecline in volume, although it hasbeen growing in recent years. Themarket can be divided into severalsectors including prepared bakeryproducts and home baking.Pre-pre-pared products include traditionalbreads – sliced, wholemeal, loaf etcand in-store breads. Cakes alsocome under this sector. Home bak-ing comprises products that areused in the preparation of bakedgoods, such as flour, sugar, cake mix.

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“Acorns were good till bread was found”, so said Francis Bacon, 17th century English philosopher.How right the good statesman was, for bread is not just a staple part of our everyday eating it is adelicious snacking essential. Our eating habits have become more complex in the last four centuriessince Mr. Bacon waxed lyrical. The constant pressure to eat well and avoid ill-health or obesitythrough the wrong foods has not gone away nor is it about to anytime soon. Bread has been onestaple food that has survived the cull of ‘foods to be avoided’ lists. In fact as consumers continue to

focus on healthy eating there is an increased demand for wholegrain and health-orientatedproducts. Bread provides complex carbohydrates which are a source of energy, especially in low fatdiets and it is generally low in fat and high in fibre, which is important for many health concerns.

Despite the drive towards healthy products, consumers still want products that are not only good foryou but look and taste great.

CATEGORY: Bread

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CATEGORY: Bread

There has been a rise in consumerinterest in ethnic and speciality prod-ucts. Equally morning goods are apopular choice and bread has donewell out of this snacking phenome-non. As consumers continue to eaton the go, bakers have been able tojump on the bandwagon expandingproduct range to provide greaterchoice. In addition, manufacturershave increased availability and ac-cessibility through widening distri-bution channels such as c-stores andgarage forecourts. In the morninggoods segment, soft white rolls ac-count for an estimated quarter ofthe market followed by croissants,scones, buns and Danish pastries.Innovation is key to this market andall the significant manufacturers areaware of the importance of pioneer-ing new trends and sustaining afresh image.

Brennan’s Bread is ingrained in theIrish psyche. Over the generations,this firm favourite has become syn-onymous with freshness and qualityof taste. Famous for using only thefreshest of ingredients, Brennan’sensures that its products come hotfrom the oven and onto the shelveswithin hours. It has many brands inits portfolio including; white, brown,batch, Weight Watchers, Buns andHot Dog Rolls. One of its interestingnew product developments is TheNatural Recipe Bread range, a craftbakery brand which has recapturedthe magic and art of baking. It rangecombines traditional tastes andflavours with exciting new ingredi-ents. There are seven in the marketincluding, Crunchy Wholemeal,Crunchy 7 Grain, Crunchy Oatgrain,Crunchy Rye, Farmhouse Brown,Wholewheat, and Buttermilk BrownSoda.

As one of Ireland’s largest bakeries,Irish Pride Bakeries delivers freshbread and bread products through-out the Republic every day. The com-pany has two bakeries located inWexford and Mayo which are sup-ported by a network of depots.Among its portfolio of familyfavourites including, Irish prideSliced Pan, Big Toast, Original Farm-house to name a few, Irish Pride haslaunched a number of innovativeproducts including Half Pans andIrish ride Healthy White. The latter isa great tasting soft white bread with

all the hi-fibre goodness of whole-meal bread. It has in fact, four timesmore fibre than a standard whitepan.

Irish Pride Healthy Grain Sandwichis another tasty healthy choice. Thebread is tasty malt bread, which hasextra folic acid, 10% less slat, no hy-drogenated vegetable oil and lin-seed.

Johnston Mooney & O’Brien (JMOB)has long been enjoyed by genera-tions of Irish bread eaters. Asidefrom its popular Johnston Mooney &O’Brien brand; the company has animpressive range of important subbrands which includes Butterkrust,Bundys, Hovis and Vogel. As it hasproven through the years, JMOBplaces an important value on inno-vation and new product develop-

ment. It has the widest range ofbreads and buns in the marketplaceit is committed to improvement of itsproducts and services as well as an-ticipating the needs of the consumer.

Cuisine de France has become thenumber one choice for its Frenchand ethnic style breads, continentalpastries, gourmet breads and con-fectionery and other delights fromaround the world. Cuisine deFrance’s gourmet range of breads isaimed at the discerning consumer.The flavours and bread types havebeen carefully chosen and representan innovative selection of fine qual-ity batard, boule and loaves fromaround the world. Among these is itsSunflower and Honey Star, Pain deCouronne and Cranberry and Rose-mary bread.

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There are three key emerging trendsthat are changing the nature ofbreakfast in Ireland. These are con-sumer needs based on the quest forhealth & wellness, the conveniencerequired for “Life on the Go” andsensorial experiences based ontaste. Gone are the days when every-one sits down together to a familybreakfast. In fact we can now seefrom recent research that only 31%of people sit down together to a fam-ily breakfast during each weekdaymorning. People have also becomemore concerned with family and chil-dren’s health, food quality and buy-ing local.

One of the key components of thesuccess of cereals is its popularityamong children. According to re-search an estimated eight out of tenchildren eat breakfast cereal everyday, meaning it is found in the vastmajority of houses. In fact the Irishtop the table when it comes to eat-ing cereal, with 95% of Irish house-holds buying cereal on a regularbasis which translates 36 milliontrips to the cereal aisle each year!Despite its endurance, the market isnot immune from market challengeswhich are driven by cultural changes.

These challenges have pushed man-ufacturers to embrace the new wayswe approach breakfast, reposition-ing their brands to suit thesechanges. The most obvious of thesemarket challenges is health andWellness elements which have givensome cereal brands a bad name interms of sugar and salt contents.Ongoing health campaigns havebeen encouraging several foods anddrink markets including cereals toreduce fat, salt and sugar content.Most have responded and have in-cluded new healthier product offer-ings in their portfolio.

One sector of the cereal marketwhich has capitalised out of thehealth and wellness trend for cerealsis porridge with brands like Flaha-vans surging through the market asa result. The porridge market hasbecome very exciting in recent years,with a revival of interest in porridgefor health reasons. Of late, porridgehas been considered a ‘superfood’for its health benefits.The strongmarket growth in porridge is seri-ously influenced by the increasingawareness of the many health bene-fits of porridge.

These benefits help address a broadrange of health issues from nutrition,diet and weight management to cho-lesterol and long-term heart health.The popularity of GI diets has alsohelped change the perception of por-ridge in recent years.

Another problem for cereal manu-facturers is attempting to grow in acommodity based industry with nearcomplete household penetration anda strong position as a breakfast-onlyproduct. Cereals are still largely seenand consumed as a breakfast mealas opposed to a snacking option aspromoted in some advertisementcampaigns.

Someone once mused that ‘hope is a good breakfast but a bad supper’. Breakfast is one of the mostimportant meals of the day and is worthy enough to have philosophers quoting its relevance. Cerealsare consumed in Ireland by most adults and children and have formed an integral part of the Irishbreakfast for many decades. Consequently the market is in a state of maturity but not devoid

of innovation.

...In fact the Irish top the table when it comes to eating cereal,with 95% of Irish households buying cereal on a regular basiswhich translates 36 million trips to the cereal aisle each year!

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CATEGORY: Cereal

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CATEGORY: Cereal

For a busy working population, eat-ing patterns have changed irrevoca-bly and away-from-home breakfaststhrough the deli counter at conven-ience stores or cafes has made it dif-ficult for cereals to gain share.

Cereal manufacturers are also facingincreased competition both fromwithin their sector and from suppli-ers of other breakfast options suchas fruit, yogurt or breakfast rolls andsandwiches.

On a global scale, many challengesface the Cereal industry as a wholeincluding increased grain and oatprices due to a number of factorssuch as increased feedstock de-mands, grain for bio-fuel productionand a reduction in support followingthe Agricultural Policy Reforms.The rate of inflation and cost of rawmaterials have created challengesfor many companies but 2007 was adramatic exception with an increasein oat prices of over 60%.

Poor harvests worldwide, increasingdemand and competition from othercrops, as well as weather extremeshave taken a toll on grain harveststhis year, creating a very tight world-wide stocks that are pushing pricesto new highs. There are also moreacute longer term changes, that areleading to structural shifts that may

keep prices increasing over time.

Another contributing factor is occur-ring in the Eastern markets, such asChina, India and Pakistan, which areexperiencing growth in the demandfor grains as their diets and tastesbecome more “Westernised”.These new appetites have led to ashift from traditional dishes to an in-crease in the consumption of meat.As a result, part of the demand forgrain is driven by the global meatmarket as animal foods contain ahigh proportion of grains and cere-als.

Additionally, European wide govern-ment policies are encouraging theuse of biofuels as a source of energy.The increase in demand for biofeul isleading to an increase in demand forcereals and in the absence of graincommodity stockpiles, this increaseis driving up grain prices. These com-bined factors have led to increasedprice volatility and will keep pricesincreasing over time.

Figures show the market is worth anestimated €180m and is growingannually YoY by 5.4%. Adult cerealsaccount for an estimated 16.3% ofthe market, while corn cereals are14.9% and relative newcomers’ ce-real bars have clocked up an im-pressive 12.4% of the overall cerealmarket. Hot cereals account for€15.5m, and showed a strongergrowth trend of 15.1% in 2007.

Kellogg’s is market leader in the ce-reals sector with a host of wellknown and loved brands. The suc-cess and longevity of its brands islargely due to the fact that it hasconsistently increased its range tomeet the ever-changing needs of theIrish consumer, through continuousdevelopment in product innovationand nutrition. The Kellogg’s range of-fers tasty, fun, convenience and nu-trition from a choice of cerealsincluding new brands like RiceKrispies Multi-Grain – the first kid’scereal with a natural prebiotic.

Kellogg’s Corn Flakes remains the

most loved and favourite cereal forIrish consumers. The demand foreven tastier, lower salt or innovativeoptions has led to the introductionof a wide range of no-added salt,and low salt cereals and it continuesto innovate to provide consumerswith lower salt, lower fat alterna-tives. Kellogg’s huge range of cerealsincludes well-known names such asAll Bran, Bran Flakes, Coco Pops,Crunchy Nut, Fruit ‘n Fibre, SpecialK and Rice Krispies to name a few.

Despite its endurance, the market is not immune from market challenges which are driven bycultural changes. These challenges have pushed manufacturers to embrace the new

ways we approach breakfast....

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Kellogg’s Away From Home willlaunch an exciting new product toappeal to busy out of home con-sumers in Ireland who are lookingfor a tasty breakfast option on themove. The launch of Kellogg’s CerealTo Go, an innovative ready-to-serveformat, is in direct response totoday’s ‘desk-dining’ phenomenonand busy consumers’ hecticlifestyles.

The cereal market in the away fromhome arena is growing rapidly, soKellogg’s Cereal to Go is perfectlyplaced to offer impulse establish-ments convenient alternatives forcustomers to buy and enjoy whilst onthe go. Cereal to Go will be availablein 30g quantities in five top sellingbrands: Special K, Special K RedBerries, Crunchy Nut, Coco PopsChoco Krispies and Cornflakes.

In Ireland, one name is synonymouswith porridge, Flahavans. With amarket share of almost 60% in theHot Oats category, Flahavan’s areIreland’s market leaders and havebeen to the forefront of the recentsignificant growth in the Hot Oatsmarket by keeping a keen focus onchanging Irish consumer needs andnew platforms for innovation.

According to John Noonan, Salesand Marketing Director, “Much ofthis success may also be attributedto distribution excellence which en-sures that the Flahavan’s productportfolio is available in all the majorretail multiples, independents andforecourts”

Flahavan’s brands will continue theirsuccessfull advertising campaignduring the coming season. Last year,the TV advertising campaign, enti-

tled “Flahavan’s sets you up for life”,was launched featuring energeticpack characters from Flahavan’s oat-based breakfast range.

An accompanying radio campaignfurther expanded the theme to in-corporate busy ‘on the go’ lifestylesand the importance of having ahealthy breakfast, which can some-times be eaten at work or in an of-fice environment and featured the

Flahavan’s Microwaveable QuickOats range.

Flahavans launched its Organic Por-ridge Oats brand in April 2001 andtoday this remains the marketleader, having created a new seg-ment for organic oats. The WeetabixFood Company has been creatingdelicious breakfast cereals since1932, using only the finest ingredi-ents.

CATEGORY: Cereal

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Its portfolio is packed full of brandsknown and eaten throughout thelength and breadth of Ireland in-cluding Weetabix, Alpen, Weet-aflakes, Ready Brek, Weetabix Minisand Weetos.

Weetabix has long been a firm fam-ily favourite and it is not hard to seewhy. Packed with wholegrain good-ness, there is now an even biggerrange of Weetabix Cereals to chosefrom including, Weetabix, WeetabixGold, Weetabix Minis and WeetabixOrganic.

Alpen is available in original and noadded sugar varieties as well as adelicious range of Alpen bars, for ahandy way to enjoy Alpen on the go.There are a host of flavours tochoose from including Fruit n Nutwith Chocolate, and four varieties ofAlpen Light, a bar packed withflavour and taste with just 70 calo-ries per bar.

As Irish people become more awareof their eating habits, many are nowenjoying muesli as a breakfast cerealand the Irish muesli of choice isKelkin. Available in three varieties,Kelkin Muesli comes in OriginalMuesli, which is packed full of aunique blend of fruits, nuts and oatflakes, Kelkin Tropical Muesli, andKelkin HoneyCrunch Muesli.

Odlums selects only the finest qual-

ity oats to make its famous PorridgeOatflakes. Its unique milling meth-ods give its products a distinctivetaste and flavour. Odlums PorridgeOats are packed with all the good-ness of 100% wholegrain oats –nothing added and nothing takenout. Odlums Porridge Oatflakes areavailable in 500g packs, 1kg packsand 1.5kg packs.

Quality is the essential ingredient toall of Nestle’s brands and the reasonwhy millions choose its productsevery day. All Nestle breakfast cere-als contain the goodness of naturalwholegrain, which research showscan help maintain health as part ofa balanced diet. Classics like Shred-ded Wheat, Shreddies and Cheeriostaste as good as ever or alternativelynutty Clusters, or Oats & More hitthe spot.

The Shredded Wheat range of cere-als includes Bitesize ShreddedWheat, Honey Nut & nut ShreddedWheat, Bitesize organic ShreddedWheat. Nesquik is a combination ofchocolate corn and rice cereal forkids.

Kelkin natural mueslis, with highfruit and nut content, contain noadded sugar and are low in salt –making them the ideal healthy startto anyone’s day. Kelkin supportedtheir Muesli range during 208 usingBTL activity, new radio adverts and

print media to communicate to con-sumers – Kelkin Set’s The HealthyYou Free. Kelkin also offer an exten-sive seeds and grains range suitableto add to cereals, salads etc.

Irish food producer Kozy Shack® Eu-rope is launching Ready Grains™, ahealthy and convenient multigrainbreakfast cereal. Produced in its fac-tory in Castleblayney, the cereal ischilled, ready-to-eat and combinesnutritious whole grains, oats, barleyand rice, with fresh Irish milk. Avail-able in four variants, Original, Straw-berry, Apple & Cinnamon and Peach,Ready Grains™ can be warmed in amicrowave or eaten cold as adessert.

The launch of Ready Grains™ is beingsupported by a programme of tar-geted advertising, PR and samplingactivities to drive trial.

Family owned business Kozy Shack®has been manufacturing fresh pud-dings made with natural ingredientsfor over 40 years. The company,which was founded when it startedto supply its flagship product, ricepudding, to local shops, is now amajor dessert manufacturer with in-ternational distribution and sites inNew York, California and Ireland.

New Ready Grains™ is available in150g single serve pots

...According to research an estimated eight out of ten children eat breakfast cereal every day,meaning it is found in the vast majority of houses.

CATEGORY: Cereal

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The Irish confectionery market hasan estimated value of €600m andthis market has grown by 12% overthe last decade. There are two dis-tinct sector within the market;chocolate which accounts for thelargest at 69% and sugar whichracks up 31% of the market. One ofthe reasons that this market contin-ues to grow is due the portability ofbrands which are a convenient ac-companiment to our hectic lifestyle.

There is no doubt that increasinghealth concerns about diet andwhich foods we should be eatinghave been a challenge to manufac-turers. However, there is always aninnovative way out for most marketsand there is a strong link between ef-fort (healthy diet) and reward (treat)as well as seeing confectionery as alifestyle enhancement and a sensoryexperience. If chocolate and sweetsare marketed as a stress-busting aidto sharing pleasure and nostalgia asopposed to a health wrecker, manu-facturers can face up to the chal-lenges it faces.

Since the early part of the noughties

consumers have been warned aboutthe effects of food and diet on over-all health. During this time, researchindicated that there was evidence ofconsumers cutting back on chocolatebut trading up into premium pricedsectors in order to maximise theirenjoyment of chocolate. In otherwords consumers stopped casuallyeating chocolate everyday and savedup their chocolate experience bybuying more expensive luxurychocolate brands less causally. Man-ufacturers at the time experienceddeclines in volume sales, and someresponded by downsizing productionwhile others formed ‘mega-brands’to bring economies of scale in mar-keting and create brand blocking atthe fixture.

Aside from economic changes, man-ufacturers have implemented a num-ber of measures to avoid poorpublicity in the health debate suchas limiting advertising to childrenand improving pack labelling.

Irish consumers attitude to choco-late has evolved beyond bars andsweets. Along with coffee, wine and

cheese, handmade chocolate occu-pies a unique place on the Irishpalette. There has been a swathe ofhandmade and luxury chocolates inthe last number of years encirclingthe confectionery market taking ona mass-produced feel, becomingmore mainstream, with less room forsomething artisan and creative.

The Irish chocolate market at€544m is the 12th biggest in Eu-rope and the UK’s biggest exportmarket. The market share of luxurychocolate confectionery productsgrew by 20% in 2007. Despite thesales figures, the people want sub-stance and validity from their food,hence the rise of farmers marketsand free range and organic produce.In addition, as consumers becomemore aware of food quality, there is acorresponding demand to know theorigin of ingredients particularly inthe premium end of the market.

Within the handmade chocolate sec-tor, the optimum product is onewhich can sell all year round, as themarket is very seasonal. Sales ofboxed chocolates have increased ingeneral and now represent a 25%

The Irish are renowned for having an extremely sweet tooth and we are among the highestconsumers of chocolates and sweets in the EU. Only the UK and Germany are ahead in terms of

consumption, which in Ireland is a rather hefty 8.2kg per head every year.

CATEGORY: Confectionery

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Leaders in Children’s Confectionery Since 1928

Unit 40 Broomhill CloseTallaght Dublin 24Tel: 01 4517642

www.swizzels-matlow.comwww.lovehearts.com

From 2009 all Swizzels Matlow Irl products will be produced with NO ARTIFICIAL COLOURS.Swizzels Matlow Irl views this as an important step forward in responding to consumers needs and tastes.

This process has been considered very carefully so as not to compromise the quality of our products.

Available from your local Cash and Carry or Wholesalers Nationwide.

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CATEGORY: Confectionery

share of the chocolate market, how-ever, Valentine‘s Day, Easter,Mother‘s Day and Christmas are stillthe big seasonal hitters in terms ofsales. There is no denying the powerof chocolate, its quintessence is re-cession- proof, ideal when a smallpiece of luxury is required that doesnot involve a flinching credit card.

According to recent consumer re-search, Irish consumers have shiftedtheir tastes for chocolate and arenow seeking more innovativeflavours; exhibiting a tendency to-wards more luxury products spend-ing more on individual purchasesthan ever before. Although trendsshow consumers in general are cut-ting back on chocolate, sales for2007 actually see a 10% increase invalue.

This ‘cutting back’ has had a rathernegative impact on the confectionerymarket as a whole but has impacted

positively for the handmade choco-late market. An emphasis on healthand wellbeing has seen dark choco-late take on a new precedence as itsrich in anti-oxidant health creden-tials, influence sales. All ofRochfords’ chocolate range have adark chocolate version including itsPremium Truffle Selection which in-cludes dark truffles and Dinner MintSelection which also has dark choco-lates.

The obvious market leader in theIrish confectionery market is Cad-bury’s which has a host of yummyfavourites including Cadbury DairyMilk, Flake, Crunchie, Wispa, He-roes, Double Decker and Milk Tray toname but a few.

Among its top selling brands is Flakewhose delicious unique texture wasinspired by a Cadbury employeeback in 1920. His job was to pourchocolate into chocolate moulds.One day he noticed that excesschocolate spilled over the tops of themoulds and folded down into astream of chocolate. The new Flakeproduct was created as the texturehad many thin layers of chocolate

with an irresistibly crumbly and flakytexture. These days Flake comes inmany shapes and forms includingFlake Classic, Flake Praline, FlakeDark and Flake Dipped.

Crunchie is another firm favourite.The bar was originally launched in1929 and was initially launched byFry’s – a separate business whichlater joined with Cadbury. Crunchieis available is a range of sizes of mul-tipacks, including treatsize andsnacksize bars.

Another favourite is Heroes whichwas first launched in September1999. A mix of Cadbury barspacked in a tub format that is idealfor sharing; consumers love to rum-mage in the tub to find theirfavourites. These include among oth-ers; Cadbury Dairy Milk, CadburyDairy Milk with Caramel, CadburyDairy Milk Whole Nut, Twirl, Time-out.

Some of the world’s best knownchocolate bars and confectionerycan be found in the Mars portfolio.Among them are of course, Mars,Starburst, Snickers, Twix, M&Ms

and Skittles.Originally made in Britain but nowsold all over the world, the Mars Baris one of the confectionery industry’sgreatest success stories. As many asthree million Mars bars a day aremade at the company’s Slough plantin the UK.

Aside from economic changes manufacturers have implemented a number of measures to avoid poorpublicity in the health debate such as limiting advertising to children and improving pack labelling.

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Twix is another big player in thismarket. The chocolate bar has twinfingers of biscuit, caramel and choco-late. Snickers is crammed withpeanuts, caramel and nougat thencoated with milk chocolate. Snickersquickly became one of the world’sfavourite treats after it was first in-troduced in 1930.

Nestle’s family of confectionerybrands include KitKat, Aero, Smar-ties, Milkybar, Rowntrees, QualityStreet and After Eight, Lion Bar andYorkie to name but a few.

KitKat was developed as a four fin-ger wafer crisp, initially launched inLondon in 1935. Over the yearsKitKat has appeared in Orange andMint versions. A Caramac variantwas launched in 2005 and hasproved the most successful versionto date. Other variants includeKitKat 4 Finger Fine Dark, its 2 fin-ger range Kit Kat Chunky and KitKatChunky with Peanut Butter.

Yorkie was first launched in 1976 totake on brands such as Cadbury’sDairy Milk. Names which were origi-nally being considered at the timewere ‘O’Hara’, ‘Trek’ and ‘Rations’. Ithas become firmly established as asolid chunky eat with a clever adver-tising campaign aiming it ‘uniquelyfor men’.

Aero is another brand with a longhistory. Launched in 1935, it wasoriginally to be named Airways. AeroChunky was launched in 1982 forconsumers looking for a snack onthe move. It has appeared in a num-ber of variants including orange, andcappuccino. Its peppermint varianthas been a success since its launchin the 1970s. Since then we haveseen Aero expand its range to in-clude Aero Caramel, Aero Truffle,and Aero Bubbles.

The Green & Black’s Brand has en-joyed huge success in the Irish mar-ket. The brand was launched in

1991, and is now the UK’s fastestgrowing confectionery brand. Green& Black’s Maya Gold chocolate wasthe first product to be awarded theFairtrade Mark in 1994. The Green& Black’s product range now in-cludes 150g, 100g and 20g choco-late bars as well as premium organicice cream, biscuits, drinking choco-late, cooking products, gift boxesand Easter Eggs.

Clarendon Confectionery is part ofthe Jacob Fruitfield food group man-ufactures popular brands Silver-mints, Scots Clan, Double Centreand Yorkshire Toffee. This year,Clarendon Confectionery introducedan extension to the Scots Clan brandwith the launch of Scots Clan bar.This enabled the brand to move intothe fast moving counter unit for thefirst time consisting of six individualbite size Scots Clan sweets.

The Silvermints brand introduced anew confectionery in a further de-parture for he classic brand and it isnow available in a ‘mini’ format. TheMini Silvermints are packed in 12eye-catching, compact tin with a re-sealable flip top tin.

Robt. Roberts’s range of confec-tionery brands includes Lemon’s,Chewits, Topp’s, Elizabeth Shaw,Fisherman’s Friend, McGowan’s andZed Candy. Lemon’s is an Irish brandwhich is well established in the con-fectionery market. Earlier this year,Robt. Roberts launched a new rangeof Lemon’s ‘Better for You’ bags thathave proven to be a huge success,according to the company.

Lemon’s range carry’s a new propo-sition of being 99% fat free, with noartificial colours or flavours and aremade with natural fruit flavours. Therange includes 5 varieties in 200gpacks plus the leading varieties offruit jellies and orchard jellies also in100g packs.

Swizzels Matlow have been operat-ing in Ireland for over 35 years, andits’ flagship brand Love Hearts hasbeen in existence for over 70 years.

Irish consumers have shifted their tastes for chocolates and are now seeking more innovativeflavours; exhibiting a tendency towards more luxury products spending more on individual

purchases than ever before.

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Over the last year Swizzels MatlowIrl extended the success of LoveHeart brand with the launch of addi-tional product types, while keepingthe heritage and nostalgic appeal ofthe original branding. This includedLove Heart Dip and Love Heart Lip-stick

Swizzels Matlow Ireland produceproducts within the following cate-gories positioning itself as a ”OneStop Shop Solution” for Children’sconfectionery: Love Hearts: 20c Roll,35c Giant Roll, 15c Lipstick, 30c

Love heart Dip. Chew Bars: 5c Re-fresher Chew, 20c Stinger, 20c Re-fresher, 35c Refresher/DrumstickStickpack. Pops: 10c Drumstick Lol-lie, 10c Double Lollie Wrapped, 15cChunky Drumstick, 15c Chunky Re-fresher Pop, 35c Mega Double Lol-lies, 15c Giant Fruity Pops. Sherbet:2c Rainbow Dust Straws, 15c MegaRainbow Dust Straws. Gums & Jel-lies: 20c & 35c Fun Gum bag range.2c, 5c, 10c, 15c, Fun Gum Tubs.Grocery Bags: Love heart MultipackVariety Bag, Chew Mix, Double lol-lie, Swizz Kid, Lots of Lollies, Bumper

Bag, and Monster Mix. From 2009all Swizzels Matlow Irl products willbe produced with NO ARTIFICIALCOLOURS. Swizzels Matlow Irl viewsthis as an important step forward inresponding to consumers’ needs andtastes.

Kerins foods is the brainchild of JohnKerins which he established in 2006along with his sister, Theresa. Thecompany sells, markets and distrib-utes confectionery and has its prod-ucts listed in Donnybrook Fair, theButler’s pantry and Morton’s inRanelagh. Kerins Foods importsDelaviuda, a product of the Madridbased confectionery company ofwhich Kerins Foods has the rights forin Ireland. Delaviuda dates back to1883 and today it exports to over60 countries worldwide. Delaviuda’srange of confectionery is competi-tively priced and is renowned for itschocolate truffles, pralines and bis-cuits. The range if competitivelyprices and there are sugar free op-tions also available.

Rochfords Handmade Chocolates, isa new Irish made artisan chocolaterange produced by BR Marketing.William Rochford with his brotherMichael run a very successful foodimporting and distribution business,BR Marketing, based in Dublin forthe last 25 years employing over 50staff. They have built some very suc-cessful brands on the Irish marketwhich have now become householdnames.

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CATEGORY: Confectionery

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In addition to selling in the Irish mar-ket, William sees a huge potentialabroad due to the vision people haveof Ireland as a place where passionand expertise inform our food indus-try. This is certainly true when itcomes to the handmade chocolatemarket. Chocolate is big in Europeand there is a strong market for pre-mium and artisan chocolates.

Chocolate claims the largest share ofthe European confectionery market.By 2010, the total market is ex-pected to account for over 55% ofthe European confectionery market.The European market is currentlyvalued at €30bn.

The top five countries in the choco-late market including the UK,France, Germany and Italy, accountfor 71% of the total European mar-ket size by value.

In the US, 4.3% growth is accountedfor through the rise in popularity ofpremium chocolate. It is also worthnoting that 51% of the US food anddrinks market is consumed outsideof the home. The market is expectedto experience stronger average an-nual growth compared to Europereaching $33.0bn in total by 2010.Homemade produce is rising in im-portance to the Irish shopper. Datashows that 72% of Irish peopleagreed that food produced locallyresults in higher quality products

Rocheur Ltd has been establishedfor over 20 years having been set upfrom small beginnings and since

then has enjoyed progressive andsteady growth in the Irish market.

Rocheur Ltd specialise in importingchildren's confectionery, and distrib-uting it to all channels – direct Re-tail, Wholesale Cash & Carry and theMultiple trade.

Rocheur Ltd has many differentagencies and constantly introducenew products and improve productrange and distribution. The companyhave established the Spanish "Fini"brand in Ireland. This range has ex-cellent quality confectionery andinnovative packaging and is verycompetitively priced. Rocheur Ltdalso have a large range of interest-ing products for all seasons –Christ-mas, Halloween and Easter.

The Irish chewing gum market has avalue of €45.5m and is growing 4%year on year (YoY), with bubblegumaccounting for €2.9m. Wrigley’s has87% of the sugar free market. Themints market is worth €26.3m andhas a YoY growth of 5%; whileWrigley’s extra is the country’s num-ber one countline and enjoys a valueof €26m.

It would not be an overstatement tosuggest that chewing gum wouldscarcely exist if not for Wrigley’s. It isthe name leaping out from shopsacross Irish towns and villages. TheWrigley’s company is the recognisedleader in the confectionery field andthe world’s largest manufacturer ofchewing gum with sales of more than$4bn. The company markets its

array of brands to over 180 coun-tries.

With an eclectic portfolio of brands,there are a few favourites in this partof the world among them, ExtraSugar-free gum, Orbit, Juicy Fruitand Hubba Bubba. The Extra rangeof sugar-free gum, which comes inseven flavours including Spearmintand Peppermint, was the first sugarfree gum launched by Wrigley’s inthe US and was first introduced in1984.Juicy Fruit is another familiarbrand with Irish gum chewers. It isthe number one fruit gum brand andis the number one gum brand withkids. Orbit, available in sevenflavours first launched on shopshelves in 2001 to rapid success andis among the top five gum brands,enjoyed by millions across Europeand the Middle-East. The HubbaBubba family of products has alsobecome well-recognised brandacross the globe.

CATEGORY: Confectionery

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Imported and Distributed by:Rocheur Ltd South Quay Arklow Co. Wicklow Ireland

Tel: 0402 24766 Fax: 0402 24769email: [email protected]

Fini Bag rangeNatural Sweets - Natural Flavour - Value for Money

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Dairy products have long been con-sidered essential to a healthy dietwith copious amounts of protein, cal-cium, vitamins and minerals found incheese. However, in recent years, di-eticians and various media and re-search has challenged these viewsclaiming it is fattening. The NationalDairy Council of Ireland disputesthat dairy is anything but healthy;

“It is a common misconception that

dairy products are fattening and areoff limits when it comes to a healthybody weight. However, exciting newresearch has revealed that consum-ing three servings of dairy productsa day is associated with a lower bodyweight because the calcium in dairyproducts is believed to help reducebody fat.”

The cheese market has expanded interms of variety, particularly as an

increase in immigration in Ireland oc-curs; many new tastes are beingcatered for. In addition, consumersare prepared to spend more for spe-cialised cheeses, and as they are re-garded as a delicacy, prices arehigher. As wages continue to in-crease, demand for expensivecheeses is expected to continue togrow accordingly, however as diet is-sues prevail, demand has shifted to‘light’ version of superior cheeses.

The Irish dairy market is one of the most significant in Ireland. Almost every home has some form of a dairyproduct. As popular as dairy is, there has been a challenge to this high penetration level as the market,

particularly cheese, becomes saturated with alternative products.

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Trends show that Irish consumersare moving towards a healthier dairydiet.

Cheese has sustained positivegrowth in Ireland despite claims thatit is fattening. The all-Ireland cheesemarket was valued at €250.9m. AsIrish tastes continue to becomemore adventurous; this continuousrise in the cheese market is fuelledby many new flavours, health claimsand convenient products. Sales of or-ganic cheese have increased in re-cent years to €5.02m, up almost200% since 2003. Sales of organic

cheese accounted for 2% of totalcheese sales.

The vast majority of Irish consumerseat cheese. Despite its popularityand price competitiveness is verystrong between own-labels andbranded offerings, which affects mar-gin growth. Moreover, like most cat-egories in the dairy market, cheesehas been singled out for its per-ceived ‘high fat’ content. Marketersand manufacturers alike have beenquick to dispel any fatty connota-tions by emphasising the nutritiousbenefits of its consumption.

Cheese remains one of the most ver-satile products within the dairy mar-ket. There are numerous regionaland speciality varieties available onthe market, with some made fromgoats, sheep’s or even buffalo’s milk.Many products proclaim the benefitsof low fat and no-additives/preserva-tives in order to give a healthierimage. Added vitamins and mineralsare also included which reassuresconsumers that cheese is not as badas it is occasionally perceived.

As some consumers fall away fromdairy products due to lactose intol-erance, there is a variety of new low-lactose dairy-free cheese optionsnow available. Innovation in packag-ing of cheese predominantly focuseson convenience with most productsmade to open. Gourmet cheese hasbecome ever more popular withcheese connoisseurs. Authentic tasteand regional specialities are con-tributing to a gourmet-like culture ofcheese.

It is advised that children need to in-clude calcium as part of their diet toensure the growing of healthy bones.For this reason a growing amount ofcheese products are aimed at chil-dren as it ensures calcium intake in aconvenient form.

Despite its popularity the number ofcheese eaters is falling. Penetrationof cheese blocks fell from 81%-78%.Main cheese users fell by 8% inthose classed as fledglings; heavy/,medium/light usage remained stableat 13%. Those in the AB socio eco-nomic group are most likely to eatcheese on a heavy basis. Irish ched-dar remains the most popular typeof cheese consumed in Ireland.

Women remain the principle con-sumers of cheese blocks; 82% com-pared with 75% of men. Thepercentage of under-25s who eatcheese in blocks is the lowest of allage groups at 66%. The over-25sare most likely to consume cheese inblocks on a medium basis. Some13% of households with children usecheese in blocks on a heavy basis.Similarly, over 12% of playschool/primary/secondary parents also haveheavy usage of cheese in blocks.

[Source; Mintel]

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CATEGORY: Dairy

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Irish consumers are experiencing anincreasing awareness and accessibil-ity to a wider range of productswhich will obviously push up sales ofspecialised dairy products which areretailing at higher prices.

Conversely, many major Irish dairyproducers have begun to targetglobal markets with firms like theKerry Group and Glanbia expandingtheir product ranges, and even pro-duction, to the US, Asia and the Mid-dle East.

Ireland remains self-sufficient in milkproduction and continues exportingdairy. Competition of milk supply inIreland should also increase as EU

policies continue to reform.Dairy products are among thecheapest on the average shoppinglist but as premiumisation continuesdue to an increasing presence of cer-tain produce like organic and low-fatproducts, some dairy goods are be-coming more expensive while thebasic varieties are stuck at the valueend of the market.

In terms of consumer price, milk isgenerally at the value end of themarket but as emphasis on naturalnutrition and health issues in-creases, consumers are willing to paymore for new varieties of milk. Lowprices are being pushed by large su-permarkets like Tesco, which al-

though beneficial for consumers,means farmers are losing out as theyreceive lower prices in a challengingwork environment.

As consumers embrace the organicrevolution, retailers and supplierswill obviously increase their offer-ings. For example, in the UK whereorganic milk sales were up 45% yearon year, Tesco will pay £400 peryear for the coming three years in anattempt to convert more farmersfrom the conventional sector. Themoney is intended to alleviate or-ganic conversion and inspectioncosts, and will be available to everycurrent and new member of the Or-ganic Milk Suppliers’ Co-operative.

Health issues have been the focus of the Irish dairy market in the last five years with new-productsconcentrated on ‘low-in’ varieties as well as organic, vitamin-orientated and healthy bacteria.

Another new addition to the dairy sector is products which claim to enhance skin and make it lookyounger. In addition, consumers are continuously on the search for healthy alternatives to soft

drinks and as such milk providers should target this area making milk more appealing as a beverageto be consumed on the go. A similar marketing strategy along the experience and success of the

bottled water market could be achieved with such consumer interest.

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The dairy industry has entered a newperiod of trade in which worldwidesupply is no longer responding suffi-ciently to increased market demand.In September last year, Ireland for-mally called for a 3% increase inmilk quotas from April 2008. Thisdemand has been echoed by a largenumber of other member states.Agricultural minister Mary Coughlanhas said that an appropriate EU re-sponse to the buoyancy in the dairymarket was necessary. She said;

“The buoyancy now evident hasgiven a whole new impetus to thewider dairy sector following the im-plementation of the Luxembourgagreement and the virtual removalmarket support mechanisms thathave resulted from reform.”

The Irish milk market has an esti-mated value of €500m with creamboasting a €20m value. From a con-sumer perspective the overall dairymarket is being driven by health andwellness aspects. Health is the mainfactor influencing the state of thedairy market and milk is no excep-tion. There are innumerable differentopinions and expert views on the im-pact of dairy in a daily diet. Some

believe that dairy is essential andothers point out that it should be cutout from a healthy diet.

Thus healthy-orientated productswhich are low in fat, low in salt andallergy-free are proving popular inthis market. Healthy eating trendshave made a clear impact on themarket favouring organic, semi-skimmed and skimmed milk. Yet de-spite the health drive, consumers arestill enjoying an indulgent treat fromother dairy products and cream stillgets a strong look in. Although somesectors of the milk and cream mar-ket still suffer from a lack of innova-tion, there are without doubtopportunities to develop and growthe market, including such areas asvending, and targeting specific con-sumer groups.

The clear market leader in the Irishmilk market is Glanbia with its Avon-more range of brands. Avonmore’srange has a number of market lead-ers within their categories. Avon-more Fresh milk is full of naturalgoodness and only 3.5% fat. It isrich in nutrients such as carbohy-drates and protein and offers essen-tial minerals such as zinc and

phosphorous and the all-importantcalcium. Avonmore Slimline Milk isan impressive 99.7% fat free, yetstill maintains the same levels of cal-cium as whole milk. It is also en-riched with high quality protein andvitamins A and D.

Avonmore SuperMilk is another bighitter in the milk market. Enrichedwith extra calcium and 5 vitamins,Avonmore SuperMilk is designed foractive, healthy living and can be en-joyed by all members of the familyfrom two years of age up.

There are innumerable different opinions and expert views onthe impact of dairy in a daily diet. Some believe that dairy isessential and others point out that it should be cut out

from a healthy diet.

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Avonmore SuperMilk also boastsextra folic acid, a B vitamin thatneeds to be taken daily by women ofchildbearing age.

Avonmore Go Lite offers all thehealth and nutritional benefits ofFresh Milk, yet with fewer caloriesand only half the fat. It is an ideal al-ternative for the more health con-scious. Consumers are getting allthose valuable and essential vita-mins and minerals without having tocount calories.

Avonmore Cream boasts a five-strong brand portfolio which is thewidest range offering in the creamcategory. Comprising AvonmoreFresh Cream, Double Cream, SourCream, Light Cream and WhippedFresh Cream.

Avonmore Fresh Cream is consis-

tently part of any shopping list withits huge versatility. The cream suitsevery type of culinary need from thesecret something in the tastiestsoups to the most luscious sweetsand all in between.

Avonmore’s new re-sealable creampack which locks in freshness to thelast drop has been a success withconsumers. It is easier to open, eas-ier to pour and avoids wastage. It isavailable in 500ml, 250ml and 170ml sizes.

Premier Milk, also from Glanbia, isclosely associated with Dublin andhas for generations been the pre-ferred milk choice in that area. As aresult, Premier is the number twomilk and cream brand in Ireland.

Glenisk Organic Milk is fresh, whole-some and rich in essential nutrients

including calcium. The milk brand isfull of flavour and comes in Whole,Low Fat and Fat Free varieties.The company also markets small vol-umes of organic goat’s milk for drink-ing. Glenisk has done very well withselling goats milk as it has had nocompetition in the domestic market.Goat’s milk is beneficial for thosewho are sensitive to other milks andhas long been valued for its excellentmedicinal and skin enhancing quali-ties.

French giants, Danone entered theIrish milk market in 2006 buying a37% share in the Tullamore basedcompany Glenisk. The latter is nowlikely to double its current milkthroughput of 1.4 million gallons bynext year and increase it by up toten fold within five years. Conse-quently Glenisk is busy seeking outnew suppliers of organic milk It cur-rently has 28 suppliers 15 in the Re-public, and 13 in the North.

Dawn Dairies and the former GoldenVale Dairies, part of the Kerry Group,supply milk to consumers, retailersand caterers in the South West ofIreland. . Its portfolio includes a

range of unique functional milk forti-fied with Omega-3 and vitamins spe-cially formulated to target thehealthy conscious consumer. DawnOmega Milk comes in two variants;Fresh and Low Fat. Dawn OmegaMilk.

Strathroy Ireland is Ireland’s fastestgrowing privately owned dairy; asubsidiary of Strathroy Dairy andbased in Ballycoolin Dublin.Strathroy Ireland offers a completerange of fresh milk products at com-petitive prices and delivery of serv-ice that covers the entire country.

Included in its portfolio are; Whole,Low-Fat and Skimmed Milk whichcome in an array of packaging andsizes; from _ litre cartons up to 22.7-litre catering packs. Strathroy alsohas buttermilk, and fresh cream va-rieties.

Irish consumers are experiencing an increasing awareness and accessibility to a wider range ofproducts which will obviously push up sales of specialised dairy products which

are retailing at higher prices.

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Reductions in cooking from scratchhave also had a negative impact asmore consumers purchase preparedmeals to eat out. Despite these neg-ative influences, these products con-tinue to have high householdpenetration rates and are consid-ered by many consumers to be a sta-ple part of their diet.

The increase in market value of but-ter has been steady over a five yearperiod. This is largely due to a vari-ety of new healthier butter productsand new flavours which may encour-age consumers to opt for premiumvarieties of butter at higher prices.

Sales of organic butter have in-creased since 2003 from €0.19mto €0.7m in 2006. Sales of organicbutter accounted for 0.7% of totalbutter sales. The market value of

spreads in all-Ireland has increasedby 11% points since 2001. The ma-jority of growth has been persistentover the last three or four years. Themarket value of spreads stood at€52.5m, a rise of 8% since 2001.

The market value of margarine on anall-Ireland basis has been in decline.The value fell from €40.9m in 2001to €18.8m in 2006, a fall of 54 per-centage points. As conventional mar-garine has a much higher presenceof Tran’s fats than butter, there hasbeen certain controversy surround-ing research which shows a link be-tween diets high in Trans fats andcoronary heart disease. As such mar-garine has come to be perceived bymany as less than healthy.

The yellow fats market comprisesbutters, fats and spreads products.

The market has been in a maturestate for some years and hasreached almost 90% saturationwhich has resulted in some brandsbecoming commoditised. Like theother sectors in the dairy market,health concerns and its progressiveimportance to consumers has seenan increasing focus on NPD. This willcontinue to drive innovation in thefuture.The Irish market is worth an esti-mated €145m. Butters and spreadsare continuing to grow but mar-garine is in decline, according tomarket researchers. Reduced fatproducts have helped to make thesector relevant to today’s health con-scious consumer. That said con-sumers are quickly becoming cynicalabout products which promise theearth moon and stars in health ben-efits.

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Sales of butter and yellow fats products have suffered a decline in recent year due to increasingConsumer concern about health-related issues such as heart disease and obesity. Many consumers

are cutting down on their overall fat intake and increasing numbers are making a distinctionbetween ‘good fats’ and ‘bad fats’ and consequently turning to alternative fats like olive oil,

especially when cooking or baking.

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Manufacturers would do well fromnot brandishing scientific termsacross their products and makethings a little simpler.

Kerrygold Pure Irish Butter is thevery essence of rural Ireland. Pro-duced to the most exacting require-ments and standards, it enjoysworld-wide recognition as a culinarydelight. Its entirely natural content ishighlighted by the unique goldencolour and singular taste. Made from100% fresh milk, Kerrygold is highin Omega 3, Beta Carotene and Vi-tamin A. The Kerrygold range in-cludes Kerrygold Foil Butter, SofterButter, Lighter Softer Butter andGarlic & Herb Butter, to name a few.

Over the past 30 years, the yellowfats sector has experienced rapid de-velopment and in Ireland today therange of products on offer has ex-panded dramatically. In the mid-sev-enties, consumer choice was largelyrestricted to butter and margarinewhile in the early eighties, new prod-ucts, comprising blends of butterfatand vegetable oil were developedwith the aim of combining the tasteof butter with the convenience ofspreadability. Tub packaging wasalso introduced and reduced-fat andlow-fat spreads followed in the lateeighties and nineties, to cater to thediet-conscious sector of the market.

Although these developments oc-curred in response to an increasinglydiversifying market, one disadvan-tage of this fragmentation was agreater consumer confusion relatingto the nature and composition of theyellow fat products on offer. Whilemany of the so-called ‘taste’ spreadsbegan life with a 50% butter con-tent, today these products containlittle or no butterfat at all.

Amid all the multiplicity of blendsand mixtures which populate thechilled cabinets one brand has re-tained its clear, uncomplicated mes-sage, Kerrygold – pure Irishcreamery butter. Unquestionably ahousehold name in Ireland, the Ker-rygold brand is owned by the IrishDairy Board, a commercial dairy co-operative, whose role is the exportmarketing of Irish dairy products.Whether as consumer packed retailproducts, as provisions for the cater-ing and foods service sector or as

specialized ingredients for food man-ufacture, the IDB markets and sellsto a variety of culturally diversemarkets around the world.

Originally launched in the UK in1962, Kerrygold butter has devel-oped an impressive pedigree inter-nationally. Following Ireland’saccession to the EEC (EU) in 1973,Kerrygold butter was launched inGermany and now commands thenumber one position in that largemarket. Today Kerrygold butter canbe found in over 60 markets aroundthe globe, throughout Europe, Northand South America, Africa, Asia andAustralia. A.C. Neilsen data recordsthat Kerrygold is the most pur-chased imported butter in theUnited States.

According to IDB, in Ireland, Kerry-gold is the leading butter brand,with a market share of 46%. Dis-tributed nationally and carried inevery grocery outlet, large or small,throughout the country, Kerrygold,in its signature gold foil packaging,has continued to be the butter of

choice for almost four decades.

has played an intrinsic role in theIrish diet for centuries and evokes atraditional lifestyle, rooted in theIrish countryside and made in tan-dem with the seasons.

Kerrygold is a brand that peopleknow and trust. It is a name thatstands for premium quality, for nat-uralness, a truly reliable Irish food.All of these values are reflected inthe Board’s advertising strategyworldwide. On the home market,Kerrygold TV advertising has beenfairly iconic. There is a high degreeof recall of, and affection for, Kerry-gold storylines amongst consumers.

Dairygold Spread is the flagshipbrand of Dairygold ConsumerGoods. Made with all natural ingre-dients freshly blended for a creamiertaste, Dairygold dominates the tastespreads sector with a market sharevalue of over 57%, outselling itsnearest competition by five to one,according to the group.

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The health spreads sector is showingoverall growth of 3.4% and Dairy-gold Light has a strong position withan estimated 20% value share of thelow fats spreads market. DairygoldLight is 62% fat free, low in satu-rated fat and high in mono-satu-rates. Dairygold is available in a _ lb,1lb and 2lb tub and a 1.8kg cater-ing tub. Other key products in theDairygold portfolio include GoldenPasture, Country Pride and Bally-clough.

Dairygold Heart is Ireland’s numberone taste spread. The brand is a lowfat spread that contains plant sterolswhich are clinically proven to helplower blood cholesterol levels by10% when used as part of a healthydiet.

Since the 1970s Kerry Foods has pi-oneered and developed world classtechnology in the production of high-quality dairy and low fat spreads atits plant in Listowel, Co. Kerry. Thishas helped Kerry Foods to establisha leading position in many of itsspreads categories through a portfo-lio of leading brands including LowLow, Kerrymaid, Move over Butter,Easigold, and Golden Olive.

The Low Low ‘healthy butter’ com-prises two consumer offerings – LowLow Original and Low Low Gold. The

latter combines a pure buttery meltand creamy taste with the health cre-dentials of the Low Low brands.

Kerrymaid is made from freshcream. The well-recognised ‘fromwhere Kerrymaid is made’ TV cam-paign reinforces the position of thebrand to consumers, according toKerry Foods.

Golden Olive is a unique offering onthe Irish yellow fats market, the onlybrand to offer consumers a spreadwith the long-term health benefits ofolive oil. Move over Butter is placedas the fun, exciting, buttery spreadthat is great for the whole family.

The Avonmore butter range has astrong variety of products which in-clude Avonmore Spreadable Butterand Avonmore Unsalted Butter, anideal choice for more health con-scious consumers.

Avonmore’s yellow fats range makesit a leading player in the butter andspreads sector in Ireland. The rangecomprises Avonmore Lifestyle, Avon-more Light, and Avonmore X-traLight, Avonmore Spreadable Butterand Avonmore Unsalted Butter. Ac-cording to the company, AvonmoreLifestyle is a perfect spread for thewhole family. It is made from thebest of Irish sourced ingredients andoffers good value for money.

Flora is high in polyunsaturated fatand at least 70% lower in saturatedfat than butter. The Flora brand isthe biggest seller in the butter andmargarine sector. Uniquely, Florahas contributed to developingawareness of the importance of abalanced diet plays in maintaining ahealthy heart. The Flora range ismade up of Flora Original, FloraLight, Flora Buttery and Flora LowSalt.

The Flora Pro.Activ range compriseslow fat spreads, a semi-skimmedmilk drink, a one-a-day yogurt drinkand low fat yogurts. Flora Pro.Activclaims to dramatically lower LDL(bad) cholesterol level within aboutthree weeks. In addition, FloraPro.Activ and Flora Pro.Activ witholive oil make the promise to con-sumers that ‘gram for gram, notother spread can lower cholesterolby more’.

Utterly Butter is made with butter-milk which explains its delicious but-tery taste and creamy texture. It isthe ideal spread for those who seekenjoyment in both taste and life. It issuitable for all the family and can beused for spreading, baking or frying– just like butter. Moreover, UtterlyButter contains half the saturated fatof butter and is trans fat, acid free.The distinctive yellow tub comes in500g and 1kg tubs.

CATEGORY: Dairy

The increase in market value of butter has been steady over a five year period. This is largely dueto a variety of new healthier butter products and new flavours which may encourage consumers

to opt for premium varieties of butter at higher prices.

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Sales of organic yogurt have in-creased since 2003 by €15.5m to€27.2m. Sales of organic yogurthave increased for 11% of total yo-gurt sales. Natural and organic prod-ucts continued their ascensiontowards the mainstream, sustainedby their image of being better foryou and more pure. Low in fat wasstill the top claim, as diet concernsare important for consumers. Healthbenefits continue to grow towardsmore developed functionality, suchas promoting digestion, improvingthe immune system, and the inter-esting claim of some products help-ing with weight loss.

Children are significant consumers of

items in the sub category of chil-dren’s yogurts, so have had manylaunches that target them and theirspecific needs, with nutritional bene-fits to appeal to parents. In addition,yogurts with cosmetic benefits werealso introduced as well as some tar-geting females. Packaging of yo-gurts are mainly motivated by theprofitability and convenience for theon-the-go shoppers

At the other end of the spectrum, yo-gurt is least consumed within the re-tired population in Ireland. This mayindicate that health claim yogurtsare not having the desired effect.One main problem of yogurts for theretired generation could be the

times that yogurts are used – theworking population may use yogurtsat snack times such as part of alunch or to fill up on the go, as ahealthy alternative. Those who areretired have more time to preparesatisfying lunches and so yogurts areoften not considered for inclusion.

In order to offset this, producerscould encourage retired people toeat yogurt with fruit as a healthybreakfast, add speciality yogurts torecipes when preparing to eat yogurtwith fruit as a healthy breakfast, addspeciality yogurts to recipes whenpreparing meals to create teatimeyogurt snacks, which accompany bis-cuits.

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Yogurt has achieved great success in terms of market size in the last number of years. All Irelandsales increased 80% to €247.7m with the market in the Republic valued at €192.7m. The majorityof success occurred in the Republic as consumers believe they have a more healthy diet that theircounterparts in the North. The introduction of health claims on yogurt and yogurt drinks has en-

couraged many consumers to adopt many of the new healthy yogurts in their diet.

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The yogurt market has experiencedstrong growth in the last few years.Growth has largely been driven byconsumer desire for natural healthand indulgence yogurts. Probioticyogurts and yogurt drinks, diet andindulgence yogurts continue toboost the overall market.

There has been a move away fromthe perception that yogurt can onlybe consumed after a main meal sim-ilar to a dessert and instead hasbeen marketed as a snack option forany time of the day. New product de-velopments have entered the marketquite rapidly over the past few yearsresulting in the natural health seg-ment outgrowing other segments ofthe market.

NPD is not the only factor improvingthe overall value of the market. Bet-ter packaging has increased demandfor out-of -home consumption. Asthe market is dominated by a few ofthe industries strongest playersmany NPDs over the past few years

have been brand extensions to someof the market’s top performingbrands.

Innovation has been largely takingplace within the natural, health, dietand corners/twin-pot yogurt seg-ments. The yogurt drinks sector iscurrently experiencing strong growthand is expected in time to catch up,or even, outgrow other categories inthe market.

Glanbia is the market leader in yo-gurt production with the Yoplaitbrand which includes favourites suchas fruit yogurt, Yoplait Petit Filousand Yoplait Yop.

As always, Glanbia continues to flexits innovative muscle in the yogurtmarket with its well-known brandYoplait. Yoplait Essence is the latestNPD brought to us by the group.Yoplait has discovered a new way tocondense nature’s nutrients to helpimprove health and well-being.Yoplait Essence contains a range of

products which includes Lower BloodPressure & Cholesterol, ImmunityBoost, Lose Weight and Healthy Di-gestion. As the names suggest, eachshot is designed to deliver a specifichealth benefit, so consumers are as-sured their bodies are getting thehelp to stay healthy.

Yoplait’s probiotic yogurt drink,Everybody, is second on the Irishmarket. It contains essential vita-mins, minerals and the probioticLGG (Lactobacillus GG). LGG is themost clinically researched probioticculture in the world. It is a natural in-testinal friendly bacterium whichhelps control harmful bacteria in thedigestive tract and enhances the im-mune system. In addition to YoplaitEverybody, Glanbia has also incor-porated LGG into milk with thelaunch of its Avonmore ProbioticMilk. Everybody is ideal for adultsas part of a healthy balanced diet. Itis also suitable for children as part ofa balanced diet but should be lim-ited to 1 bottle per day.

Danone is a global producer of con-sumer foods, among them itsrenowned yogurt and fromage fraisbrands among them two of its topperforming brands Danone Actimeland Danone Activia.

Children are significant consumers of items in the sub categoryof children’s yogurts, so have had many launches that targetthem and their specific needs, with nutritional benefits to

appeal to parents.

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Danone Actimel derives its namefrom the Flemish ‘Active Melk’ mean-ing active milk. It is a fermented milkdrink which is presented in 100gbottles. According to the companythe drink contains two ferments ofyogurt and probiotic that maintainsgood health and reinforces the natu-ral defences in the body. In IrelandDanone Actimel is available in packsof four with a choice of flavours in-cluding; Original, Orange, GrannySmith and Red Berry. Actimel is soldin 35 countries around the world.

Danone Activia contains a uniqueprobiotic culture. It is the only yogurtcompeting in the market that con-tains a unique bisidiobacteria calledbisidobacterium lactus. The productclaims that when taken daily the cul-ture has been proven to help the di-gestive system. The yogurt isavailable in a varied range of sizeand flavours such as Strawberry,Plain and Peach.

Muller is best known for its yogurtcorners which come in a variety offlavours each with delicious thick andcreamy yoghurt with a separate por-tion of fruit compote, so they can beenjoyed in their own special way. The

corner range also includes MullerCrunch Corner which includes vari-eties such as strawberry shortcake.

MullerLight Fruity is a rich creamyMuller yogurt blended with 10% realfruit in every pot. Virtually fat free,the range is available in cheery,strawberry, mandarin, tasty black-currant, rhubarb or apricot.

Glenisk’s creamy, fruity and naturalorganic yogurts come in a range ofmouth watering flavours and containbeneficial probiotic cultures to pro-mote healthy digestion.

Glenisk’s new, improved; naturalwhole milk yogurt now comes in500g containers. The whole milkused in Glenisk’s creamy yogurtcomes from Irish organic cows thatgraze on lush pastures untouched bysynthetic fertilisers or pesticides.

Cholesterol lowering Flora pro.activlow fat yogurt comes in eight great-tasting flavours; Strawberry, Apricot,Blackberry, Raspberry, Fig, Prune,Cranberry & Raspberry andRhubarb. The range also comes inFlora pro.activ cholesterol yogurtdrink. For optimum cholesterol low-

ering benefits it is recommendedthat consumers eat three portions ofFlora pro.activ foods each day.

Ski Yogurts are a delicious range ofreal fruit yogurts made from pureand simple ingredients and naturallylow in fat, which are great for all thefamily to enjoy. Ski Yogurts containno artificial colourings, no artificialsweeteners, no preservatives, and nogelatine. The range includes Variety,Tropical, Very Cherry and Very Berry,Ski Fat Free, and Ski Smooth.

Yeo Valley products, from the BoyneValley Group, are premium organicdairy products. The range includesfull fat and low fat yogurt, naturaland fruited yogurt. The range in-cludes a delicious variety includingamong others, Natural Organic Yo-ghurt 500g, Natural Organic Yo-ghurt 150g, Strawberry OrganicYoghurt 150g, and Apricot OrganicYoghurt 150g.

Sno Yogurts extensive portfolio ofproducts caters for all tastes. Dairy-gold’s Sno yogurts are available in awide range of flavours including SnoLight, Sno Crumble, Sno Double De-light and Sno Fromage Frais.

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Innovation has been largely taking place within the natural, health, diet and corners/twin-potyogurt segments. The yogurt drinks sector is currently experiencing strong growth and

is expected in time to catch up..

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Aside from Thai dishes, Tex Mexfoods have developed in a verystrong way. Manufacturers have fo-cused as much attention on educat-ing consumers as increasingawareness utilising products such asmeal kits. Equally, as the average TexMex enthusiast are typically young,affluent family households, there ismuch room for development in this

market in terms of specialised au-thentic ingredients and seasonings.

Similarly Chinese food has emergedas an increasingly important mealtime solution. As many as three outof five consumers claim to eat Chi-nese once a month. Manufacturerswould benefit from creating newusage occasions and increased fre-

quency through Chinese food ingre-dients, sauces and spices.

A firm family favourite is Uncle Ben’sand its range of ethnic sauces fromaround the world. Uncle Ben’s TexMex range products include MediumChilli, Hot Chilli, Texan BBQ withSweet Peppers, Cajun and Chilli ConCarne.

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The revived trend for cooking at home is benefiting some markets like ethnic food.Cooking sauces and ingredients are gaining as consumers become more familiarwith different cuisines. Additionally, as Irish society becomes more ethnicallydiverse and multicultural the exposure and availability of ethnic ingredients isincreasing. Positioning Thai and other emerging ethnic cuisines as a healthy andnatural addition to consumer’s eating has ensured that many ethnic food brands

have formed a staple part of the average Irish consumer’s mealtime.

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Uncle Ben’s Chilli Con Carne range isavailable in Mild, Medium and Hotflavours and is free from any artificialflavourings or preservatives. Equallypopular is its Texan Barbecue saucewith tomatoes, sweet peppers andbrown sugar. Similar to its otherranges it does not include any artifi-cial flavourings or preservatives.Uncle Ben’s Orient range includesamong other Sweet & Sour, Sweet &Sour Light, Lemon Chicken, Can-tonese, Hoi Sin with Spring Onions,Black Bean with Green Peppers.

Uncle Ben’s range of Thai productsincludes Thai Coconut Curry andThai Sweet Chilli. Its Coconut creamycurry with bamboo shoots and co-conut is a popular choice among

Thai food enthusiasts. The rangecontains no artificial colours, flavoursor preservatives.

With its extensive range of fine Chi-nese sauces and seasonings, Amoyhas long been synonymous with au-thentic Asian cuisine. Amoy saucesare brewed from top-grade soybeansfollowing time honoured traditionsthat have been perfected throughthe years. Amoy classic oystersauces continue to be renowned forits rich yet delicate taste, while Amoyconvenience sauces and seasoningsmixes make gourmet dishes easierand more convenient to prepare.

Amoy has one of the most trustedsoy sauce brands in the markettoday. From traditional recipes suchas Gold Label Soy Sauce and DarkSoy Sauce, to speciality soy saucessuch as Seafood Soy Sauce, Chili SoySauce, and Low Salt Soy Sauce.

Ken Hom, from Stafford Lynch, is arange of Chinese and Thai saucesand ingredients. Ken Hom Cook'ssauces contain specialist ingredientswhich have been sourced and ex-pertly blended for consumer’sfavourite recipes. The range gives avariety of tastes and flavours for acompletely new repertoire of dishes,all of which are MSG free.

Ken Hom Sauces include a diverserange of delicious Thai and Chinesechoices such as; Black Bean with or-ange & lime, Chilli & Garlic withjalapeno peppers, Singapore Currywith turmeric, Sweet & Sour withpassion fruit, Thai Green Curry withlemongrass and Thai Red Curry withlimeleaf to name a few.

Kikkoman Soy Sauces are naturallybrewed, made from three ingredi-ents – soy beans, wheat and salt.Kikkoman’s most popular soy sauceis a regular soy sauce which has adeep reddish brown colour and awonderfully rich flavour. It is used incooking and as a table-top season-ing, much like salt and pepper. It of-

fers several versions of soy sauce in-cluding Light Colour Soy Sauce and aless sodium Soy Sauce, in which thesalt content is reduced using Kikko-man’s technology – while retainingits original full bodies flavour.

Loyd Grossman’s popular range ofsauces includes Indian and Orientalvarieties. The range of OrientalSauces includes Green Thai Curry,Malaysian Rendang, Red Thai Curry,and Yellow Thai Curry. Loyd Gross-man’s Indian sauces include amongothers Balti, Korma, Tikka MasalaSweet Tomato Bhuna and Madras.

Blue Dragon from BR Marketing en-compasses a range of oriental foodslike sweet & Sour and Thai GreenCurry and more exotic and unusualproducts such as Tamarind Pasteand Sushi Su. The range comprisesthe three classic and most populardishes; Thai Yellow Curry, Thai Red

Curry and Thai Green Curry saucesin Thailand from fresh ingredients,aromatic herbs and creamy coconutmilk by the chefs who make thesauces for the world famous MangoTree Restaurants.

Sharwood’s is the leading brand inAsian sauces and accompaniments.The latter includes Naan breads,hand-shaped and flame-baked in atraditional clay lined oven, Puppo-dums, a range of noodles, PrawnCrackers and Green Label MangoChutney. Sharwood’s ethnic range ofsauces includes Chinese, Thai and In-dian varieties.

As Irish society becomes more ethnically diverse andmulticultural the exposure and availability of ethnic ingredients

is increasing.

CATEGORY: Ethnic

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With the seafood market being com-prised of an array of sub sectorsfrom pelagic fish such as mackereland herring to the high end shellfishlike crab, prawn and mussels someof the major trends can be lost in themacro trade figures. For example,demand for mackerel rose on mostexport markets with the subsequentvalue of mackerel exports from Ire-land increasing by a dramatic 35%in 2008. This is driven partly by in-creased stock available but also bypositive market conditions in key ex-port markets with prices rising by16%.

In contrast to the commodity tradeditems such as herring and mackerel,much of the Irish seafood category iscomprised of high end value prod-ucts such as crab, mussels andprawns. As these products are tar-geted at the high end luxury Euro-pean market these sectors have hada number of difficulties in the current

market.

Crab supplies, for instance, havebeen increasing from competingcountries such as Scotland and Nor-way. In order to combat this BordIascaigh Mhara has been developinga strategy of targeting niche Euro-pean retail markets and addingvalue to the raw material throughfurther processing within Ireland.Ireland was one of the pioneeringcountries in developing pasteurisedcrab for the European market. Evi-dence of the success of this strategycan be seen in the average price pertonne of crab exported from Irelandincreasing by double digit growth in2008.

Exports of Dublin Bay prawns havealso experienced a similar trend tothat of crab with unit price per tonneperforming very well but overall pro-duction is down due to lower avail-ably of stock for export. The mussel

market is the exception to this andstrong competition in the Europeanmarket, particularity from countriesoutside the European Union such asChile, have driven down the overallprice in this category making it verydifficult for Irish exporters.

On the domestic market the freshseafood category continues to be thedominant sector accounting for 49%of all sales with frozen and cannedseafood accounting for 34% and17% respectively. While both freshand frozen seafood sales have re-mained stable in 2008 some inter-esting sub trends can be noted. Forinstance, sales of salmon both freshand smoked,continue to rise with anoverall increase of 13% in the cate-gory in 2008. This is been driven bya slight increase in price but also,and more importantly, by new cus-tomers shopping the category. BIMhas been active in focusing on con-sumer education both in the

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The current economic difficulties facing all sectors of the food business have impacted on theseafood sector but not to the same extent as other food items. Demand for Irish seafood on theexport market amounted to c.€350m which is a slight decrease (3%) on levels for 2007. On thedomestic market retail sales have remained constant at €174m and the food service market is

estimated to show a decline in value to €180m from €213m in 2007.

CATEGORY: Fish

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nutritional aspects of seafood butalso in the preparation of seafoodand this has certainly contributed tothis growth. With consumer showingclear signs of more in-home enter-tainment there are further opportu-nities in this market for innovativeand diverse seafood products.We expect that the Irish retail mar-ket for seafood will increase mod-estly overall in 2009 but theemphasis will be on a broader prod-uct range and formats to meet theseconsumer needs.

Manufacturers have been quick todevelop both the precooked andready, prepared formats. This has

enabled consumers to speed upcooking, serving and clearing upprocesses. Restaurants have ex-posed consumers to different ways ofpreparing fish and seafood. How-ever, while increasing consumer in-terest, this has not really stimulatedthe preparation for a wider range offish and seafood in the home, ac-cording to the trade.

It is highlighted by industry agenciesthat Irish consumers lack the confi-dence and ability to prepare andcook fish in the home. The fish mar-ket is dominated by frozen sales ac-counting for 47% of all sales. Thefrozen seafood market has beendriven by consumer interest inhealthy living and international cui-sine.

The frozen market is dominated bysales of coated fish. Fish fingers haveincreased in sales during the last fiveyears supported by a young popula-tion. However, they are comingunder pressure from competitiveproducts as chicken nuggets, pizzasand processed potato products.

Fresh/chilled fish and seafood salesaccount for 38% of all sales andcanned/bottled formats account for16.1%. The seafood sector providesemployment for an estimated 4,000full-time and seasonal workers in135 fish processing units. The inter-national market for fish and shellfishproducts is strong and over 90% ofIrish fish is exported.

The canned fish market is valued at

an estimated €32m. Tuna is thefastest growing product in the cate-gory and accounts for 53% of sales.Salmon is the next big seller with27% of sales, followed by Sardines8% and all other fish 12%, which in-cludes Mackerel, Herrings, Kippersetc.

Donegal Catch from Northern Foodshas grown in reputation since its firstfoil bag range of frozen fish waslaunched in 1988. The DonegalCatch brand, available across Ire-land, produces a range of frozen fishmeals with natural fillets and bat-tered fish, to scampi, white fishcoated with seasoned crumbs withan estimated 59% market share.The brand is graded, filleted andfrozen at Gurteen, Co. Sligo and em-ploys 85 employees.

The company’s Atlantic CaughtFreshly Frozen range, Battered Codand Haddock and Scampi remainfirm favourites. The Donegal CatchTrawler Fresh guarantee means con-sumers know they’re buying fishcaught in the Atlantic Ocean and fastfrozen to capture its natural tasteand goodness.

Donegal Catch caters for all tastes,whether it’s Cod with a Sea Salt andBlack Pepper Crumb, or its NaturalFish range of cod, haddock andsalmon and its Mini Fillets. Theseprime fillets of Atlantic Whiting andCod come with a variety of season-ings and dips, such as Spicy Cod withSour Cream and Lightly SeasonedWhiting with Garlic and Herb. Readyin just 15 minutes, Mini Fillets areperfect for a light lunch or eveningsnack is a great introduction to fish.

Bird’s Eye fish fingers claim an esti-mated 80% of the Irish kids’ fishmarket. The range includes Captain’s100% Cod fillet fish fingers, Cap-tain’s Tuna burgers and Captain’s100% New Zealand Hoki Fillet fishfingers. Bird’s Eye Bakes are avail-able in three flavours Italiano Bake,Broccoli Bake and Cheese Bake.

On the domestic market the fresh seafood categorycontinues to be the dominant sector accounting for 49% of allsales with frozen and canned seafood accounting for 34% and

17% respectively.

CATEGORY: Fish

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Bird’s Eye claims to have a marketshare of 22% in the frozen fish sec-tor. Bird’s Eye ranges includes ‘Bird’sEye Naturally’ which includes twosteamed vegetable & two fish parcelvariants which are microwaveable.The fish parcels are steamed whitefish fillets in a vegetable blend sauce.Made from 100% New Zealand Hokifillets, it provides a suitable alterna-tive to cod, according to the com-pany.

From regular and flavoured tuna toslices and spreads, there’s a JohnWest tuna product perfect for anymeal or snack. John West is the lead-ing canned fish brand in Ireland andmarkets more than 60 differentcanned food lines from Salmon, Tunaand Sardines to Fruits in Juice,Spices and Canned Meat. Includes inits range is; Tuna Steak in SunflowerOil 200g, Tuna Steak in SunflowerOil 100g, Tuna Steak in Brine 200g,

Tuna Steak in Brine 100g.

Picnic is the largest selling Irishowned brand of canned fish and issynonymous with quality and value.The range is extensive making Picnica key player in the market. The Pic-nic range contains omega 3 oils invarying degrees. Among its top sell-ing products in the range include Pic-nic Pink Salmon 213g, Picnic PinkSalmon 105g, Picnic Tuna Chunks inBrine 3x 80g, and Picnic TunaChunks in Brine 185g.

The Rob Roy brand of Tuna, Sar-dines and Brisling is another highlysuccessful Irish-owned canned fishbrand in the market. Rob Roy TunaChunks come in oil or brine in twosizes, 185g and 95g, while Brislingand Sardines are available in oil ortomato.

The Rob Roy range of prawns fits

perfectly with today’s increased de-mand for healthier and more naturalfoods. Rob Roy prawns are a goodsource of Omega 3 fatty acids, anexcellent source of protein and agreat way to easily incorporate iron,zinc and vitamin E in the diet.

CATEGORY: Fish

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The frozen food market comprisesfrozen fish, seafood, meat products,potato products, vegetables, fruitpizza, ready meals, bakery productsand desserts. According to TNSWorld panel, the pattern of expan-sion and accelerated growth withinall product sectors of the frozen foodmarket correlates with the fact thatmore consumers have switched tofrozen food with a goal to minimisewaste while still retaining the nutri-ents and vitamins locked in to frozenfood. And with every good reason.The Irish have spent far too longwasting food. Data shows that one inthree households throws out 10% oftheir fresh vegetables; a staggering7,000 tonnes of perfectly good andoften expensive food. Clearly, thepresent gloomy economic outlookhas put paid to that.

The global frozen food market grewby 4% to reach a value of $100bn.By 2012 the market is forecast tohave a value of $119.9bn an in-crease of 19.9% since 2007. Inglobal terms, sales of frozen pizzaand ready meals account for 41.4%of the market’s value. Unilever is theworld’s leading player holding a 4%market share by value.

All products within the Irish frozenfood category are expected to con-tinue to hasten over the forthcomingmonths. With the credit crunch stillvery much in full swing and expectedto get worse, consumers have fast re-alised the cost saving benefits offrozen food.

The category has also benefitedfrom major investment form the

leading brands such as Birds Eyeand McCain.

There is no doubt there has been agood deal of snobbery about frozenfood through the years but the in-dustry has learnt much to under-stand that shoppers and chefs likewhat’s on offer. In 2008, the UK’sbest known TV chef Delia Smith puther weight behind frozen food givingthe category a much welcome boostin popularity. Known in the UK, asthe ‘Delia Effect’, her series and ac-companying book, ‘How to Cheat atCooking’ flew off the shelves when itespoused the nutritional and cook-ery benefits of certain frozen foods.

Conversely, sales of frozen mashedpotatoes, aubergine and ready madespice mixers went through the roof.

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The frozen food market is undergoing something of a renaissance at the moment. In fact thecategory has enjoyed accelerated growth for quite a few years now as consumers turn to frozenfood for its minimal waste and locked in nutrients. The leading growth sectors of this market

include savoury foods and the fish sector.

CATEGORY: Frozen Food/Pizza

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No doubt the Delia Effect hasrubbed off on Irish consumers as in-creasingly, chefs are espousing thebenefits of using frozen ingredients.Jamie Oliver regularly encouragesusing shop-bought frozen filo pastry,rather than making it from scratch.

The weakening economy has un-doubtedly conspired somewhat toencourage shoppers to switch frompricier products to the more valuedriven frozen category. However, itwould be simplistic to imagine thesewere the only factors at play. Overthe past number of years frozen foodhas profited from big brand invest-ment, a revival in own label productsand support form all celebrity chefs(other than Delia!) - much of whichhas come in response from growingconsumer demand for healthierfood.

The big names like McCain and BirdsEye have begun to underpin theirhealth message in their advertising,

discussing the goodness and versa-tility of frozen food. For instance,Birds Eye is branding its productswith Omega-3 credentials. Similarly,McCain Oven Chips boast just twoingredients specially selected pota-toes and sunflower oil, and its prod-ucts contain just 5% fat and nocholesterol.

According to many food nutritionistsand studies, frozen food has alwaysbeen a much better , fresher prod-uct than the chilled equivalent andconsumers are now seeing it forthemselves thanks to excellentbranded advertising. As cost pres-sures augment, frozen will undoubt-edly continue to gain at the expenseof chilled. The heady days of doubledigit growth in the chilled categoryare no more, say market analysts,and the cards are in favour of frozenfood.

The reality about the nutritional ben-efits of frozen fruit and vegetables

has hit home with many consumers.Frozen vegetables are usuallyblasted frozen within four hours ofpicking, so virtually all their good-ness is preserved. An Austrian studyfound that not only is the vitamincontent of frozen vegetables sub-stantially higher than that of freshvarieties, they are also less contami-nated by pesticides and fertilisersbecause they are grown in season.

While groceries in the fridge andcupboard will gradually lose their nu-tritional value, vitamin content onlyreduces very slowly over time inmost frozen foods. Peas, for exam-ple, are frozen within two and a halfhours of harvesting and the levels ofvitamins C and B are often higherthan in fresh versions which loosefresh nutrients during transportationand storage within shops and in thekitchen. Freezing also reduces thedamage to the texture and flavour ofthe food so that colours, flavours andpreservatives are not needed.

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CATEGORY: Frozen Food/Pizza

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Pizza Market:Consumption of pizza’s has reachedimpressive rates and the segmentcontinues to be one of the most im-portant of the frozen food category.The market continues to show stronggrowth, driven by the performanceof the chilled sector. The pizza sectoris dominated by frozen pizza butmost multiples now offer cookedpizza in store for about half the priceof a home delivered version.

The market for convenience may stillbe a relevant motive in today’s con-sumer but manufacturers need totake note of changing tends largelyinvolving healthy lifestyle choices.Consumer’s want health options andTV cookery shows and celebrity chefs

have done much to demonstratethat a pizza is a health meal choicewith a few different toppings such asrocket, roasted vegetables andparmesan shavings.

For some time now the demand forhome delivery continued to showstrong growth, the highly competi-tive nature of the overall eating outmarket and rivalry from the chilledretail sector meant that the eat-in-sector was starting to find tradingconditions difficult.

The rise of the ‘foodie’ during bettereconomic times took its toll on thefrozen pizza segment. However, withthe current global recession comes aback to basics consumer attitude

and many are opting for the ‘co-cooning’ option over going out; stay-ing in with a pizza, a bottle of wineand an rented DVD.

The Players:Birds Eye Foods is one of the bestknown names in the Irish frozen foodmarket. Birds Eye’s famous productrange includes fish, poultry, vegeta-bles, burgers & meatballs, mealsand pies. Its top brands include Cap-tain Birds Eye and Birds Eye Steam-fresh, all of which are made with onlythe freshest ingredients. Its veg-etable range includes everythingfrom simple vegetables to vegetablemixtures and vegetables with sauce,ensuring endless meal solutions.

Its famous Captain Birds Eye rangeincludes Omega 3 Fishfingers, 100%Cod Fillet Fishfingers, Mini Fishfin-gers and Salmon Fishfingers amongothers.

Birds Eye’s belief in quick freezinggreat food has become the core atwhat it does best creating the opti-mum taste possible. It freezes every-thing when it’s at the peak ofperfection, so there is no need foradditives, colourings, preservativesor flavourings.

Founded in 1966, Clayton Love Dis-tribution (CLD) offers a comprehen-sive national sales, marketing anddistribution service for frozen food toall sectors of the grocery sector.Based in Inchicore, Dublin, its port-folio includes the well known bluechip brands Findus, McCain and JusRol.

CATEGORY: Frozen Food/Pizza

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CATEGORY: Frozen Food/Pizza

In addition, CLD owns the 1st Choicebrand, one of Ireland’s leadingfrozen food brands, offering a wideand varied selection of quality prod-ucts such as frozen vegetables,chicken, potato, ready meals andother frozen products. CLD also hasa leading range of quality low fatfrozen products in conjunction withUnislim.

McCain Oven Chips are a marketleader in the Irish frozen food mar-ket and boast a wide range of prod-ucts all of which are made from justtwo ingredients specially selectedpotatoes and sunflower oil and theycontain just 5% fat and no choles-terol.

Findus is another familiar name inthe Irish frozen food market. Finduscontinually works to bring new andinnovative frozen recipes to its rangelike the sumptuous new Findus Nov-elli range, while also striving to im-prove household favourites like itsBeef Lasagne and Crispy Pancakes.

Green Isle Foods produces a rangeof branded frozen foods and employsover 1,100 people in Ireland with

operations in Naas, Co. Kildare, Por-tumna Galway, Longford and Sligo.Its Irish made Goodfella’s FrozenPizza is a brand leader in the sectorcommanding 30% of all frozen pizzaretail sales in the UK. In March2008, Green Isle Foods announceda €5.3m investment supported byEnterprise Ireland in a new job, train-ing and management development.

Kerry Group’s Rye Valley Foods is an-other leading supplier of frozenready meal solutions to both theIrish and UK markets. Supplying pri-

vate label is a major part of the com-pany’s business and Rye Valley is amarket leader in the UK privatelabel frozen ready meal sector.

Dawn Fresh Foods is part of thevalue-added division of the QueallyGroup, Ireland’s largest privatelyowned agri-business with 27 multi-national food manufacturing facilitieslocated throughout Ireland, the UKand Europe. The company has sup-plied the Irish, UK, and Europeanmarkets since 1984.

... the patterns of expansion and accelerated growth within all product sectors of the frozen foodmarket correlates with the fact that more consumers have switched to frozen food with a goal to

minimise waste while still retaining the nutrients locked into frozen food.

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Irish consumers spend€801.6m on freshfruit, vegetables andpotatoes, second onlyto dairy produce,

according to Bord Bia.A further €1.1bn is

spent on theprocurement of fruitand vegetables and

potatoes.

CATEGORY: Fruit & Veg.

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Irish consumers spend €801.6m onfresh fruit, vegetables and potatoes,second only to dairy produce, ac-cording to Bord Bia. A further€1.1bn is spent on the procurementof fruit and vegetables and potatoes.

On the non-food side of horticulturethe Irish consumer is spending€431m on plants and flowers for thehome and on garden products. Twosectors of Irish horticulture, in par-ticular, are important sources of for-eign revenue. Three-quarters of allmushroom production ( €100m) isexported annually.

Farmers markets have become an in-creasingly popular outlet for bothconsumers and suppliers. Organicproduce and speciality foods are twoof the main types of produce on offerat these markets and have gainedgreat momentum as a result.

In this country, consumers are finallycoming round to the fact that fruitand vegetables benefit good health.Sales of fruit and vegetables in Ire-land topped the €1bn mark. This isequivalent to 15% of the total gro-cery market and more than the valueof dairy products or meat. Sales offresh fruit and vegetables increasedby over 4% to €801.9m in 2003,as more households bought freshproduce in larger volumes and moreregularly. The remainder is com-prised of retail sales of frozen andcanned fruit and vegetables, chilled,salad and speciality potato products.

Fresh vegetables account for 39% ofthis market valued at €310.9m an-nually. Potatoes account for a further20% valued at €161.5m annually,with the fruit & berries spend ac-counting for the remainder valued at€329.5m annually.

The fresh vegetable market is valuedat €310.9m. Tomatoes account forthe highest consumer spend on veg-etables followed by carrots valued at€56.6m and €45.4m respectively,mushrooms €26.8m, onions€26.3m and lettuce €21.4m.

Total multiples account for 81.4% offresh vegetables sales over the yearwith the symbol groups share at5.1%, greengrocers at 7.1% andother outlets 6.2% of the total mar-ket value. Tomatoes and carrots rep-

resent the two largest categories interms of the fresh vegetable market.It is worth noting that sales of fruitand vegetables at multiples con-tribute to sales by between 10-15%.The value of both markets increasedsignificantly year on year by 16.4%and 5.6% respectively. This is largelydue to more households buying intocategories.

The overall potato market was val-ued at €161.5m for the year, withpre-packed potatoes accounting for94% of total volume and 91% byvalue. Potatoes of Irish origin ac-count for the bulk of the market at79% by volume share with Britishpotatoes at 7.8% volume share.

Analysis by pack shows that the10kg pack of potatoes has becomemore important year on year. And itaccounted for 33% of the total mar-ket volume in 2002. Up to 37% ofpotatoes sold fell into the under10kg pack grouping. Stronger salesof larger pack sizes i.e. greater than10kg were experienced outside themultiple trade through symbolgroups and green grocers.

The multiple’s value share was61.5% with total symbols’ share at8.5%, greengrocers at 14% and

other outlets at 16% for this annualperiod. In the potato market, themultiples share is lower than itsshare in either fresh vegetables orfruit.

The fruit and berries market meas-urement includes all fruit such asapple, citrus, pear, soft fruit, tropicalfruit and bananas. The fruit andberries market is valued at€329.5m for the year. Across thecategories citrus is valued at€74.1m, pears €15.9m, soft fruitberries €38m, tropical fruit€24.8m, grapes €24.7m and ba-nanas €66.6m.

Of the main fruits supplied by Irishgrowers are eating apples with salesvalued at €77.1m, cooking apples€8m and strawberries €15.2m.Total multiples account for 78.6% offruit sales over the year with thesymbols groups sharing 5.4%,greengrocers 10%, and other outlets6% of the total market value.

Strawberries enjoyed a 35% growthin value sales between 2001 and2002. This resulted primarily fromhouseholds buying strawberriesmore often and buying more of themwhile there was also a price increaseduring the same period.

In this country, consumers are finally coming round to the factthat fruit and vegetables benefit good health. Sales of fruit andvegetables in Ireland topped the €1bn mark..... equivalent to

15% of the total grocery market...

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CATEGORY: Fruit & Veg.

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Traditionally Christmas is a busy sea-son for home baking and data showsthat as people are busy bakingChristmas cakes , puddings andmince pies, the associated ingredi-ents surge. Irish households pur-chase flour once every two monthsspending an average of €19.

The use of frozen pastry such as JusRol, represent a significant segmentof the home baking category. Onceagain the endorsement of Celebritychefs such as Jamie Oliver, who reg-ularly espouses the use of frozen puffpastry, has helped sales of this seg-ment.

Market research shows that 124%of Irish households consume frozenpastry, an increase of 72,000 homesand are mostly used in youngerhouseholds. The same applies topurchases of cake, bread and flourmixes.

Socio economic and demographicstatistics show that those who live incities and have a family of more thanfour members tend to buy frozenpastry; whereas those who live inmore rural areas and tend to be over55 are traditional purchasers offlour. Up to 20% of Irish consumersbuy sweet baking products;193,000 households bought a cakemix last year; with Tesco leading theway in sweet baking mixes with128,000.

The Players:

Homecook Preserves and Fruit areperfect for all occasions and ideal forall home-baking needs. HomecookPrepared Seville Oranges make 6lbsof Homemade Marmalade in only30 minutes. They have no artificialadditives, flavours or preservatives -all that’s added are the juiciestSeville Oranges and water. As alltastes differ so to does the cut of the

Homecook Seville Oranges whichcome in Medium Cut, thick Cut andNo Peel and are packed in very at-tractive colour coded cans.

All Homecook Fruits are carefullyhand selected and processed to en-sure that they are succulent in tex-ture and full of flavour. They areconvenient and simple to use and re-quire no pre-soaking. Deliciousserved hot or cold in a variety ofboth sweet and savoury dishes oreven eaten straight from the pack.

Homecook Raisins and Sultanas fitperfectly into the widely recognizedmovement toward healthy eatinghabits and an active lifestyle.Homecook raisins and sultanas are agreat source of natural energy andmake it easy to satisfy your dailyfruit requirements.Not only are theyare ready to eat and are also perfectfor all home baking needs, and areavailable throughout the year.

The idea of home baking has taken on a renewed interest among Irish householders. Baking athome has been boosted by the idea of self-sufficiency, a desire to save money, use of healthy

ingredients and ubiquitous TV programmes including Rachel Allen’s Bake.

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CATEGORY: Home Baking

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CATEGORY: Home Baking

Homecook Chilean Golden Sultanas,Californian Thompson Raisins andCalifornian Flame Raisins are seed-less and are available in resalable500g packs.

Wonderbar Cooking Chocolate is afirm favourite in households through-out the country. Wonderbar has un-dergone a makeover this year withcontemporary new packaging andbest ever chocolate recipe. It is soversatile it can be used in a wide va-riety of recipes including chocolatechews, buns, cakes, toppings,mousses and of course coming up toChristmas it is the perfect decorationfor all cakes, buns and treats.

Wonderbar Cooking Chocolate,which are made in Ireland, come ina variety of flavours to suit all tastes– Dark, Milk and White. Available in150g, 450g and the 1kg cateringsize. New this year is Wonderbar Mi-crowaveable Cooking chocolatewhich is available in a handy mi-crowaveable pouch. Wonderbar issupported in 2008 by extensivepress campaign.

Since its inception in the 1950's, theShamrock brand has been synony-mous with home baking in Irelandand for many years has enjoyed theposition of brand leader within thecategory. The brand offers a pre-mium range of ingredients including,

dried fruit, nuts and seeds that areideal for your home baking, snackingor culinary needs.Shamrock is one of Ireland's longestestablished brands and continues tohold a special place in the heartsand minds of Irish consumers.

Over 150 years old, Odlums is oneof Ireland’s oldest and most lovedbrands. The brand has been built on

its flour but recently it has kept upwith the modern consumer with newand innovate products.

Along with being the category leaderin the home baking flour aisle, Od-lums now enjoys success in thebreakfast Oats category and alsowith its range of ‘quick’ scones,breads and cakes.

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Once of the biggest challenges forthe Ice cream makers is presentingtheir product to an increasinglyhealth conscious and ethically drivenconsumer. However, like many othersectors in the food and beverages in-dustries, ice cream has stepped upto the plate by introducing innova-tions such as Frusi. Moreover, prod-ucts like the Ben & Jerry’s rangeappeal to the ethically consciousconsumer. Despite these efforts, chil-dren’s consumption of ice cream hasbeen falling and re-engaging them inthe category will obviously be fun-damental if current consumption lev-els are to be maintained in thefuture.

One of the strongest growth areas inthe market is the ‘no-added-sugar’and ‘sugar-free’ varieties. No-sugar-added products appeal to a broadrange of consumers including thosewith diabetes, those counting calo-ries, those on low-carbohydrate dietsand parents concerned with their

children eating too many sugaryproducts. The take-home, adult,super premium, multipacks, low-fat/organic, and in-home snackingsectors are equally popular and growfrom strength to strength. The in-home snacking sector is currentlythe most buoyant of the sectors inIreland.

Another factor which may have anegative impact on ice cream is theflailing economy. For many, icecream is still seen as an indulgentimpulse purchase. As consumers findthemselves with less disposable in-come to spend, luxury items like icecream are often one of the first to becrossed off the shopping list. Inthese credit crunching times fewermeals are eaten out and family out-ings, where impulse snacking is tra-ditionally consumed, are increasinglylimited.

It is hardly revolutionary to suggestthat Irish consumers are fond of ice

cream. Statistics show us that afterSweden and Italy, the Irish rank asthe third highest consumers of icecream in Europe. In addition, eachIrish person consumes an average of10 litres of ice cream per annum

Thee is little doubt the €149m Irishice cream market has changedcolours in recent years. No longerjust vanilla, the sector has spread itswings and metamorphosed into amajor impulse buy. The impulse icecream sector in Ireland has an esti-mated value of €85m with annualgrowth of 3%. According to TNS, av-erage Irish household penetrationfor ice cream is 87.6% in 2008. Theaverage annual spend per householdon ice cream is €56 n 2008 up from€52.70 last year.

The most important innovation inthe ice cream market was the minipack ice cream, offering flexibility inconsumption. The increasing avail-ability of brands in the multiple sec-tor has contributed to this trend.Other factors which have influencedinnovation include the developmentof new flavours and the introductionof low- fat and organic categories.

The ice cream market in Ireland is,broadly, split into three categories -tubs, blocks and sticks. The numberof adults that purchase ice creambars and sticks in the Republic is56.9%. In the last three yearswomen have demonstrated thelargest decrease in demand with afall of 2.2%. However women remainmuch more likely than men to pur-chase ice cream bars and sticks, ac-cording to research.

There has always been a correlation between the weather and ice cream sales. As Irish summershave proved less than sunny in recent years, there is a greater importance in growing the market

outside the season to cater for other indulgent occasions. Packaging innovations and mini bites havemeant that ice cream has the potential to be eaten on more wide-ranging occasions, instead of

alternative products such as yogurts, breakfast bars, chocolates or biscuits.

CATEGORY: Ice Cream

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Equally the number of 15-24 yearolds eating ice cream sticks and barshas decreased significantly with a fallof 6.7 percentage points over thelast three years. The 45-54 agebrackets has also recorded a de-crease in demand for sticks or bars,with a 3.5 percentage point fall inthe proportion of that age group eat-ing these products.

Those in the AB group who chooseice cream sticks and bars showed adrop of 3.2% from 60.0% to 56.8%.It is interesting that demand for icecream sticks and bars is higheramong this group and this illustratesthat advertisers may be reachingsuch consumers more successfully.Although there were slight decreasesin consumption displayed in the C1and C2 categories, the picture indi-cates growth; especially in categoryE where there has been stronggrowth of 5.2 percentage points to49%.

As much as 61.1% of those in full-time employment have eaten icecream bars and/or sticks in the lastyear. This compared to 56.7% of

those in part-time employment, adifference of 4.4 percentage points.

Household size appears to be amajor influence on decisions associ-ated with purchasing ice cream barsand sticks. The percentage of peoplebuying ice cream bars and sticksseems to increase in conjunctionwith the household size. The great-est difference is between one-and-two-person households with only42.7% of one-person householdseating these products in the lastyear compared with 52.1% of two-person households.

There has been growth in demandfrom the ‘Independent Individuals’group possibly as a result of the co-cooning phenomenon (a trend to-wards entertaining at home), whichmay impact more heavily on this par-ticular group. This category dis-played a growth demand of 7.4percentage points. The proportion of‘Unrestrained Couples’ who are eat-ing ice cream bars and sticks has de-creased by an estimated 4.4percentage points.

While many consumers have eatenice cream in the last year, for manu-facturers it is more important to un-earth the most prolific consumergroups in order to establish howbest to catering for each. There hasbeen a fall in the number of heavyusers of ice cream by adult users. Aslightly higher proportion of men areheavy ice cream users than women,although the percentage of men thatare heavy ice cream users has fallenslightly since 2002.

There has been a decline in con-sumption of ice cream across everyage bracket, with the exception ofthose aged over 65. The mostprominent fall was in the 25-34 agebracket, where heavy users declinedby 9.9%.

Consumers in all socio-economicgroups displayed a decline in heavyusage. Demand from the AB groupdropped by 4.8 percentage points to10.6 %. C1s also saw a considerabledecline of 3.6 percentage points to11.7%.

The most important innovation in the ice cream was the mini-pack ice cream, offering flexibility inconsumption. The increasing availability of brands in the multiple sector has contributed

to this trend.

CATEGORY: Ice Cream

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It is certainly noteworthy that the ABgroup has exhibited the largest de-crease in demand. Demand for ABsnow stands at the lowest of all eco-nomic groups, indicating that icecream stick and bars hold less ap-peal for the most affluent. Heavyusage for ice cream in general isquite low among the AB group.

There are quite a number of possiblefactors influencing this trend such asthe fact that the more affluent tendto be more health conscious andtherefore more inclined to choosethe healthier option.

An increase of 2.0 percentage pointsin the proportion of heavy-users inone-person households, combinedwith a 4.4 percentage point fall in

heavy usage in three-person house-holds has eradicated the trendwhere heavy usage increases withhousehold size.

Parents are increasingly concernedor aware about the health risks as-sociated with heavy consumption offoods like ice cream, such as obesity.Those living in households withoutchildren are 5.9% less inclined to beheavy users. This may indicate thatice cream bars and sticks are still re-garded as a snack option for chil-dren.Heavy users of ice cream increaseswith age, only 11.8% of householdswith children aged 0-4 years areheavy users. The figure for childrenaged 5-9 is 12.1% and the equiva-lent figure for households with chil-

dren aged 10-15 is 15.8%. Manu-facturers are always interested todiscover which sections of the con-sumer base are most likely to belight consumers of ice cream barsand sticks.

Some of these consumers may notreally like ice cream, and eat barsand sticks only infrequently; othersmay prefer tubs or blocks whileother light users may like ice creambars and sticks but don’t eat themregularly due to diets or even theweather.

It is often presumed to be the casethat medium consumption of a prod-uct is the norm; however in the caseof ice cream bars and sticks, it is in-teresting that the percentage of con-sumers that consider themselves tobe medium users of ice cream barsand sticks is much lower than theproportion of consumers that arelight users or these products.

Indeed, medium consumption isroughly as prevalent as heavy con-sumption. Medium use among alladults is falling by 1.7 percentagepoints. Most of this change is ac-counted for by a 2.6 percentagepoint fall in the proportion of womenthat claimed to be medium bar andstick consumers.

This change now means that womenare less likely than men to eat barsand sticks on a medium basis. Itwould appear that some of these fe-male medium consumers have beenlost to light consumption. However,the change fits into an overall trend,whereby females are eating fewer icecream bars and sticks and less icecream in general.

One segment where manufacturerscould find growth is in the demandfor ice cream bars and sticks frompensioners. There has been an in-crease of more than 3 percentagepoints in the proportion of over 65sthat consider themselves to bemedium consumers of ice creambars and sticks.

This coincides with a similar level ofgrowth in the proportion of theseusers that consider themselvesheavy users of bars and sticks and acorresponding decline in light users.

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One segment where manufacturers could find growth is in thedemand for ice cream bars and sticks from pensioners. Therehas been an increase of more than 3 percentage points in the

proportion of over 65s......

CATEGORY: Ice Cream

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After the slew of food scares in theNineties, manufacturers must havecollectively sighed a breath of reliefthat the noughties would bring backconsumer confidence. However,meat has faced the persistence of

food scares such as Avian Flu despiteofficial re-assurance. Moreover, con-sumers have been bombarded in themedia with the health and dietarybenefits of a vegetarian diet and cer-tain red meats have repeatedly

taken a clobbering as contributing tocertain ailments.

However, in its own way, the meat in-dustry has bounced back as whitemeat such as chicken and turkey isregularly espoused as a healthier op-tion in a low-carbohydrate diet tored meat like pork and beef.

The market for cooked meat hasshown good growth in the last fewyears. Likewise breakfast and sand-wich meats are a staple in manyhouseholds. The sector has per-formed well in conjunction with therise of low-carb diets. The challengefor meat manufacturers is maintain-ing this growth and with such a highpenetration, it is hard to see wherecooked meat can go in terms of in-novation beyond its main use assandwich filler.

New product development and pack-aging expertise is important for anysector and meat manufacturers areno exception. Meat manufacturershave tried their hand at innovationin the form of expanding productranges in retail packs of productslike ‘Ready to Cook’ which are popu-lar with families, as well as ‘MiniRacks’ or ‘Stir-fries’ which are aimedat the increasing number of smallerhouseholds.

Organic and free-range meat hasalso become an important issue forconsumers. Increasing media cover-age promoting healthier lifestyles aswell as ethical concerns, such as theissue of free-range hens has broughtorganic meat to the table in manyhouseholds.

The consumer of today places an in-creased importance on food safety,environmental and health issues andquality, hence the demand for or-ganic meat. Organic food researchhas identified variables such ashealth consciousness, environmentalconcern, animal welfare and incomeas significant determinants of or-ganic food choice.

The Irish have always loved their meat. Despite gargantuan press about what we should be eating tostay healthy and trim; meat still finds its way to most people’s dinner plate, if not breakfast and

lunch. It would be remiss to say the retail meat industry has not faced innumerable challenges but itremains a firm favourite of Irish consumers. Nutritious and convenient are the two key words which

manufacturers must stay on top of to keep consumers coming.

CATEGORY: Meat

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Generally, purchasers of organicmeat believed that it is superior toconventional meat in terms of qual-ity, safety, labelling, productionmethods and value. Availability andthe price of organic meat were thekey deterrents to the purchase of or-ganic meat. Higher socio-economicgroups were more willing to pur-chase organic meat. Increasingawareness of food safety and pollu-tion issues are important determi-nants in the purchase of organicmeat, but securing a consistent sup-ply is paramount to ensuring growthin this sector.

Some types of meat are making acome back. The previous guilty as-sociation of eating veal seems tohave been set aside as farmers andanimal welfare groups came to-gether to urge people to buy indige-nous-reared veal as a way ofstopping the superfluous slaughterof calves on mainland Europe.

Now major retailers are jumpingaboard because of higher welfarestandards, such as fibre in the clavesdiet and natural light. Marks &Spencer and Tesco restarted sales ofveal in the UK, with the latterlaunching its own brand of veal.Well-known chefs such as Rick Steinand Gordon Ramsay have also beenpromoting Rose veal. Consequently,a Tesco spokesperson has said that itexpects a rise in interest in the meat.The spokesperson said;

“Veal is to cattle what lamb is tosheep, and recent TV shows havedone a lot to explain that it is ok toeat veal if its production meets strictwelfare standards.”

Another attraction to veal is its ap-parent health benefits. It is low in fatand is a good substitute for beef inmany dishes such as SpaghettiBolognese. It is also fast to cook; itcan be ready on a pan in just min-utes which has obvious appeal torushed consumers.

Veal has had its ups and downsthrough the decades and has been

latterly controversial due to the per-ceived cruelty to young animals. Thegroup Compassion in World Farmingnow believes that only half to twothirds of young male calves are killedshortly after birth, fewer than one infive are reared for beef. During thenineties veal crates were outlawedacross Europe and higher standardswere implemented, including strawbedding, more space and more food,as well as organic standards whichare higher still.

Consequently, these changes havemeant that groups like Compassionin Farming now support eating vealas long as it is reared to the highestof standards. The group’s chief pol-icy officer, Peter Stevenson said;There’s nothing inherently cruelabout eating veal if the calf is rearedto the highest of standards, eitheroutdoors with the mother or indoors,but with a large well-ventilated barnwith lots of space and good strawbedding, and a reasonable amountof food.”

Sales of chicken in Ireland are boom-ing but the Irish poultry market hasbeen in an ambivalent state forsome time. Cheap imports form east-ern European countries and furthera field are having an adverse affecton the indigenous Irish sector. Underlabelling irregularities, many of theseforeign chickens have been re-la-belled as Irish.

Sales of poultry have increased by5% reaching a value of €227m,while sales of eggs in Ireland have in-creased by 22%, reaching a value of€74.6m. Poultry meat consumptionaccounts for 29% of total meat con-

sumed in Ireland. The poultry andeggs sector continues to make avaluable contribution to the Irishagricultural economy with output atfarm level estimated at €150m. Thesector is a significant player in Ire-land with over 6,000 people em-ployed in poultry processing and eggpacking and up to a further 850farms involved in the production ofpoultry and eggs.

Irish production rose by 3% andprocessed poultry including value-added products and chilled cutsmake up 60% of total Irish exportsin value terms, with the UK its keymarket.

The competitiveness of importedpoultry meat is an unrelenting chal-lenge for Irish producers. Apart fromthe higher cost base, Ireland has aneconomies of scale challenge as a re-sult of the small size of the marketcompared to production levels in Eu-rope and elsewhere.

Increasingly media coverage pro-moting healthier lifestyles, as well asethical concerns such as the issue offree range hens, have increasedawareness of the organic poultry sec-tor. Food scares such as Avian Fluhave brought the industry into thespotlight in recent years in a nega-tive way, encouraging producers tocreate quality and traceabilitymarks.

It is clear that despite its high pene-tration meat is susceptible to newtrends. Health, convenience andquality continue to be key issues forconsumers.

It is clear that despite its high penetration meat is susceptible to new trends. Health,convenience and quality continue to be key issues for consumers.

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CATEGORY: Meat

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Pasta has evolved on the Irish menuthrough the years to become a sta-ple, healthy, yet inexpensive foodchoice with the added convenientadvantage of easy preparation. Thepasta market in Ireland is growing insize, popularity and mainstream ap-peal as the Irish consumer increas-ingly becomes time poor and seekstime saving meal solutions. Productsin the pasta and pasta sauces mar-ket are particularly well positionedto meet this need, particularly readymeal formats.

Similarly the recent snacking trendhas had an important impact on thepasta market and has led to the

launch of many new products includ-ing instant pot snacks. Pasta andpasta based meals have also bene-fited from changing eating patterns.As a consequence the market hasshown considerable growth, increas-ing in size by 70% in the last sixyears and underpinned by the pastasauces segment.

Pasta has come close to eclipsing thehumble potato. The latter is rapidlylosing its appeal as a primary sourceof carbohydrates while the increas-ingly health orientated Irish con-sumer shifts to pasta and rice asperceived healthier choices.However, an interesting healthy al-

ternative which meets in the middlebetween pasta and the potato wascreated a few years ago and is be-ginning to pick up in popularity.Sweet potato pasta is a healthy op-tion for those who can’t eat wheatbased-pasta and believe in the fibreboosting benefits of the potato fam-ily.

A University of Georgia food scientistdeveloped a pasta product that ispacked full of health benefits and of-fers a relatively new market for thesweet potato. The product is madefrom the often forgotten but ex-tremely nutritious sweet potato,which has a niche but building

Pasta has been part of the European diet from Roman times and in the East for as long if not longer.By comparison, its contribution to Irish cuisine is rather less ancient but extremely influential nonethe less. Today pasta has never been more popular or seemed more contemporary – either as

oriental noodles or as part of the vast array of Italian pasta specialities.

CATEGORY: Pasta

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CATEGORY: Pasta

popularity among Irish consumers.

Creators used sweet potatoes to pro-duce flavoured flour and modifiedand fortified the flour with soybeanflour. Using whole sweet potato andnot just the starch, creates flourthat’s low in fat and high in fibre,beta-carotene, vitamins and miner-als.

Yau Wen Haung, the food scientistresponsible for creating this newtype of pasta, made it in flat noodleform but it can also be made in spi-rals or sea shells with the rightequipment. Like other pasta thesweet potato pasta can also bemade in either dry or wet pastaform.

Sales of dry pasta have been underpressure from overuse of promotionand price deflation. Chilled pasta hasbegun to dominate the sector as aresult and has forced manufacturersto attempt to build value back intothe dry sector. In recent times therewas some value recovery in the drysector thanks to premium productsand branded offers. Fresh pasta isequally growing and has formed avaluable segment of the pasta mar-ket

Pasta dishes have experiencedchanges incorporating natural andorganic, ethnic flavours and conven-ience that are helping to grow themarket. Premium ready meal pastais the fastest growing segment offer-ing the best option in terms of home-made taste and convenience.

Pasta continues to be popularamong the majority of consumersdue to the prominence and regularattendance of Italian pizza and pastarestaurants. An increasing contin-gency of the population is interestedin home cooking with fresh ingredi-ents and coupled with the rise of the‘foodie’ has created a strong demandfor Italian cuisine (involving pasta) inthe home.

The desire for quality and flavour inthe pasta market is driving valuegrowth with premiumisation andprovenance also showing influence;consumers are increasingly lookingfor restaurant-quality products toenjoy at home. Both of these trendsare worth bearing in mind for pasta

and pasta sauces manufacturersdealing with a traditional or evenfairly static market. Restaurant qual-ity pasta and pasta sauces, awayfrom the traditional Ragu and Bolog-nese formats seem relegated toniche, deli and gourmet shops whenthere is a clear demand from con-sumers for mainstream brands tooffer such quality.

Multiples dominate the market andprice promotions erode margins,while consumers demand prove-nance and authenticity. The overallpasta and pasta sauces market mayappear flat, but this disguised recentyears of recovery from the negativeimpact of low-carb diet fads such asAtkins which resulted in a rather lowperiod of growth.Pasta sauces remain a mature mar-ket with four in five respondents of aMintel survey reporting usage intheir households. Competitive pres-sures on pasta sauce sales comefrom FDM sources like frozen foodsand prepared deli solutions.As always demographics are alsochallenging the market, such as thatold chestnut, the increasing numberof smaller households. Older adultsuse pasta sauces less than the under45 age demographic and young fam-ilies.However, consumer interest inhealthy foods, along with manufac-turers and retailers embrace of thetrend, presents the pasta saucesmarket with a positive direction. Theaddition of organic pasta sauce linesin mainstream brands and retailchannels also supports growth.The Irish consumer generally rankstaste and quality above price, al-though this trend is vulnerable asthe current recession takes hold.However, Irish consumer interest ininternational cuisine is topped byItalian food dominated by pasta andpasta sauces.

Pasta sauces account for 30% of allsales. Niche market opportunitiesexist in the market as consumersmove away from more traditionalpasta and pasta sauces and are in-creasingly on the look-out for abroader range incorporating au-thentically Italian dishes rather thanthe anglicised Spaghetti Bologneseversion.

Established in 1958, Roma is one of

Irelands leading food brands. Withover 80 different products, theRoma portfolio includes tomatoes,olive oils, pasta sauces, rice, pas-sata’s, puree and antipastos.

The brands focus on providing thesequality, affordable Italian food ingre-dients and meal solutions has beencentral to its success to date.

Roma has also been mindful of con-sumers who would like natural prod-ucts without the compromise ontaste, by launching its re-designedrange of organic products.

The real Irish Food Company is arange of premium pasta sauces etc.which have been recently launchedinto the Irish marketplace. The com-pany is 100% Irish owned and all ofthe products in the range are pro-duced in the manufacturing facility inDrogheda, Co Louth and distributedby the Jacob Fruitfield Food Group.The Real Irish Food Companysauces are free from artificialcolours, flavours or preservativesand are produced in small batchesensuring that the full flavour and tex-ture of the ingredients are main-tained for fuller flavour. There arethree sauces in the pasta saucerange – Roasted Red Pepper & gar-lic sauce, Vine tomato & Jalapenoand Tomato & Fresh Basil.

Buitoni Pasta from Nestle Irelandhas a portfolio of pasta and pastasauces products which can help cre-ate an authentic Italian eating expe-rience. The range comprisessimmering pasta sauces, and theflavour of freshly grated cheese.From its delicious refrigerated cutand stuffed pastas to its savourysauces and cheeses, Buitoni is theItalian experience

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The notion of health and nutrition is still a draw for many consumers and one which manufacturersstill espouse in their products in 2009. The Irish preserves market is no exception, and has increased

in popularity over the last decade. Low fat, sugar and no-preservative varieties continue to bepopular in conjunction with the opposite luxury, treat end of the market. The latter benefits fromNPD focusing on various concepts such as ‘value-added’ and ‘luxury’. The total spreads market isworth and estimated €300m and is growing at 7.6% annually. The market comprises chocolate andnut based spreads, honey, fruit jams and marmalades. Top varieties for the Irish palette includestrawberry jam and coarse-cut marmalade. Low-fat and high fruit content brands. In addition,

diabetic brands are proving popular as well as spreads like honey which is favoured for its healthand versatile connotations.

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CATEGORY: Preserves

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CATEGORY: Preserves

Boyne Valley Honey is a long timefavourite among Irish consumersand the brand has been around for ahalf-century. Boyne Valley Honey is100% pure and natural. Its rangecomes in various formats including250g Kids Squeezy through to the907g jar. The former features the‘buzzy bee’ character which has beenspecially designed to appeal to kids.

Keeping on trend with all thingshealthy, Boyne Valley Manuka Active10+ Honey was launched this yearand is available in 350g jars. Famedfor its health boosting propertiesManuka Honey has become thehealth spread du jour. Boyne Valleyhas also launched a new range ofhoneys in the 350g Squeezy formatincluding Organic Acacia, Wildflower,Orange Blossom and Eucalyptus.The Real Irish Food Company is arange of preserves which has re-cently been launched into the Irishmarketplace. Free from artificialcolours, flavours and preservativesthe products include the oldfavourites such as Irish breakfastMarmalade and strawberry & Chillijam for something different.

Fruitfield’s Marmalade is the marketleader with 50% of this sector. Fruit-field Old Time Irish Marmaladeleads the pack. The range also in-cludes Fine Cut and No Peel vari-eties. The Little Chip Marmaladerange has a more bittersweet citrusflavour and has finely cut fruit piecesfor a smooth spreadable mar-malade. Little Chip Orange Fine Cutis the second best selling product inthe market. Also in this range isLemon, Lemon & Lime and Orangeno Peel varieties.

Nutella 400g is the number onesweet spread in the sweet spreadssector and is the second singlelargest sweet spread brand overallchallenging for the number one spot.Nutella’s image has broadened froma ‘treat’ spread brand to one regu-larly used by mum’s as part of theirchildren’s breakfast. Spread onwholemeal toast, Nutella allows kidsa good start every morning and pro-vides slow energy release for theday.

The brand contains one third less fatthan most peanut butters and less

sugar than most jams.

Panda chocolate spread, from TheBone valley group, is a versatileproduct and a favourite with Irishhouseholds. Panda 400g and choco-late spreads comes in a range of 3flavours, chocolate, hazelnut and twotone.

Panda Peanut Butter is anothermuch loved favourite with schoolchildren and comes in 3 flavours,smooth and crunchy and new extracrunchy which are available in both1kg and 510g jars.

Kelkin crunchy and smooth peanutbutters make a healthy alternativeand without compromising on tastehave no hydrogenated fat.

Kelkin crunchy and smooth peanutbutters have No hydrogenated fat,making them a healthier alternativewhile not compromising on taste!Kelkin offer a premium range of hon-eys.

Bonne Maman is the premiumFrench jam which has emerged withan impressive 25% growth year onyear. Bonne Maman has been theundisputed leader in its market witha continuing strategy to sustaingrowing consumer demand. TheBonne Maman range is available inStrawberry, Apricot, Blackcurrant,Blackberry, Raspberry, Peach, Dam-son, Plumb, Orange Marmalade andMandarin Marmalade, among oth-ers. Its jams are a 100% naturalproduct and are free from preserva-tives, flavourings and colouring.

Bonne Maman stands out with it

unique design and ‘home-made’image. Irish jam eaters are tradingup to premium offerings in jam withan emphasis on quality and BonneMaman offers a minimum of 50%whole fruit per 100g of jam pro-duced.

Capilano Honey, distributed by BRMarketing, is a natural product - nofat and no additives. Bottled intoconvenient packs that make cookinga breeze, capilano Honey can blendup some amazing new flavours forbaked sweets, sauces, marinades,stirfrys and dressings. Capilano’sPremium honey is a pure blend ofeucalypt and ground flora honey richin character and flavour.

Capilano also offers the Bee VitalManuka honey range,, now availablein 6+, 10+ and 15+. A new addi-tion to the range is Capilano Snap &Squeeze range - an innovative singleserve concept straight from Aus-tralia.

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These are the main factors thereadymeal sector operates within.For many years, the average con-sumer spent money trading up topremium, fresher options such aschilled prepared foods. However, thisdynamic is already in flux as theeconomy endures the current roughpatch. After years of lapping upprofit, readymeal manufacturers willhave to get used to the reality of con-sumers who require all of the abovebut may be less willing to trade upto premium prices in the future, asmore consumers get used to operat-ing on a budget.

Packaged food as a whole saw itsvalue growth continue in a relativelyhealthy mode and had 3.3% in2007, although growth is slowing asthe economy is no longer achievingthe double digit GDP growth that itexperienced in previous years.The readymeal sector spans major

multinational and indigenous brandnames. However, own label readymeals play a significant role in thissector and account for a larger sharethan any single manufacturer. Ac-cording to Euromonitor, consumersare spending more of their packagedfood budget at multiples, c-storesand discounters like Aldi and Lidland less at other retail channels.

Both the multiple and c-store sectorshave been continually introducingnew product innovations under theirown label lines. These own labellines are often less expensive thancompeting brands and throughproper positioning they have be-come differentiated as higher qualityitems. This is particularly true in thecase of Tesco’s Finest own labelbrand which competes with manypremium multinational ready mealbrand names. Multiples like Su-perquinn, Dunnes, M&S and Super-

Valu also have a wide selection ofchoice.

Kepak convenience Foods (CF), a UKbased company has unveiled amajor marketing programme tomaintain the strong growth of theRepublic of Ireland’s hot snackingmarket throughout 2009 forRustlers microwaveable BBQ flamegrilled rib of pork, flame grilledchicken and flame grilled quarterpounder and also UGO’s – KCF’spopular panini brand.

The hot snacking market in the ROIis currently growing at 21pc, withhousehold penetration currently upby 25 per cent.With the economicdownturn young adults are now liv-ing at home for longer and Rustlers’products provide a convenient snackfor them. Against this backdrop, andfor the first time, Rustlers will be ad-vertised in women’s interest titles

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Convenience plays a significant role in the life of the Irish consumer, particularly as the number ofdual income households has increased in recent years. The consumer preference towards conveniencefoods has increased as the vast majority have fewer hours in the day and working time increases andpersonal time decreases. Although we want to spend less time on food preparation, Irish consumers

refuse to sacrifice taste and quality.

CATEGORY: ReadyMeals

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aimed at the gatekeeper in the earlypart of 2009, highlighting the qual-ity and convenience of the range.It is expected over the coming yearsthat both volume growth and valuegrowth will pale in comparison tothat of previous years in thereadymeal market. The industry isbeginning to become saturated andthe national economy has stoppedgrowing at the phenomenal pace ithas enjoyed in the last ten years andmanufacturers will have to achievegrowth through value-added productinnovation.

Chilled ready meals have taken off inrecent years as a popular choice forconsumers seeking quality and taste.

In the late nineties, the chilled readymeals (vegetable, meat or fish-based) market was relatively under-developed in Ireland. The sectortends to be dominated by privatelabel sales by multiples like Tescoand M&S. In contrast to the frozenready meal sector where branding isthe norm, there is virtually no brand-ing of chilled ready meals.

According to Dr. Breda McGrath, alecturer in marketing, School of Busi-ness, Waterford Institute of Technol-ogy, large manufacturers have beendeterred from entering the marketon account of a number of significantand challenging factors including;problems of short shelf-life; potential

for growth of bacteria like Salmo-nella or Listeria if temperatures mal-function; and high wastage levels.

Other factors include handling ofthese products during transporta-tions and in the retail shop is com-plicated. The high level of own-labelpenetration, which reflects the closeco-ordination required between re-tailers and supplier to ensure prod-uct quality and safety. It is also worthnoting the barriers to internationaltrade due to the need for efficient hy-giene and temperature control.

The factors that contributed to thegrowth of ready meals in the EU arenumerous and varied. Among theseis the demographic reality of the in-crease in the number of single per-son households. There is also anincreasing household penetration ofmicrowave ovens and move towardslighter meals together with greaterhealth / weight consciousness. Inaddition, there is an increasing in-terest among consumers in ethnicfoods. Interestingly, there is an in-crease in female participation ratesin the labour force, which is linkedto increasing demand for conven-ience products as there has been amove away from family-meal occa-sions.

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Changes in technology and packag-ing have also helped the prolifera-tion of ready meals. For instance, oilcontainers have been replaced byPET containers that can go straightinto the fridge, freezer, microwave orconventional oven.

Chilled ready meals tend to be per-ceived as highly priced luxury goods;hence their consumer base is rela-tively affluent. The product appealsto the buyer who does not alwayshave the desire or necessary skills toprepare meals.

The market is largely defined by pro-fessional people with busy lifestyles,well-travelled, who eat alone, even ifthey live as families. Consumer alsopurchases ready meals when facedwith time pressures or to get out ofthe rut of daily meal solutions. It isexpected that the consumer profilewill change as the products reach awider consumer base across thecountry.

Most ready meal formats include

Italian, Chinese, and Indian disheswith offerings such as lasagne, curryand stir-fry which are often sold withan accompaniment such as rice.There is not much competition in thechilled meals market in this country.For the most part, readymeal manu-facturers produce frozen productsfor the international market place.Generally, the brand names of indi-vidual countries are not well knownand own label brands do not use na-tional TV advertising which makeslaunching a means launching a newproduct in this segment can be donewithout having to rely on a huge ad-vertising budget.

Packaging plays an important role inkeeping food product in this sectorfresh. The trend at the moment iscentred on green packaging whichare recyclable and this type of boardtrays are used more frequently in-stead of plastic as a result.

Modified atmosphere packaging pro-vides a shelf-life of around 6-days;vacuum packaging a little longer but

it is generally not suitable for readymeals. Technology such as pasteuri-sation or irradiation is effective inlengthening the shelf-life of productsbut the former is left to compromisetexture and eating quality and thelatter is not used because retailersand manufacturers fear adverse con-sumer reaction.

There is potential for maturity in theIrish ready meals market similar tothe UK market where the per capitaconsumption of ready meals is muchhigher. The UK market faces compe-tition from sectors such as Takeawayrestaurants and the expectation thatmicrowave use and ownership hasreached its zenith.

The key players in the Irish readymeals market are Master Foods,Glanbia, Kerry Foods to name a few.Similar trends could be repeated inthis country and manufacturers needto be aware of changes in consumerbehaviour as we enter an unpre-dictable period in retail history.

There is potential for maturity in the Irish ready meals market similar to the UK market wherethe per capita consumption of ready meals is much higher. The UK market faces competition fromsectors such as Takeaway restaurants and the expectation that microwave use and ownership

has reached its zenith.

CATEGORY: ReadyMeals

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CATEGORY: Rice

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Experts place the blame on risingfuel and fertilizer expenses as well ascrops curtailed by disease, pests andclimate change. The internationalrice market is currently facing a par-ticularly difficult situation with de-mand outstripping supply andsubstantial increases.

Back in Ireland, the ambient ricemarket is still as popular as everwith consumers buying the categoryabout every eight weeks. One of themain reasons for growth has beenthe success of microwaveable ricewhich has helped to convince theconsumer that rice is no longer thetraditional staple at the family mealand can be used for snacks atlunchtime and with lots of differentfoods.

In terms of healthy food, many dietsespouse the calorie reducing bene-fits of eating brown rice. Anothertype of rice favoured for its healthbenefits is Basmati. Once consid-ered speciality rice; however, its risein popularity has settled it into themainstream. This changeover showsthe potential power of other special-ity rice in the market. Convenience isdriving innovation and growth withinthe rice market as a whole.

Microwaveable products are partic-ularly popular as it allows consumersto prepare a variety of rice withintwo minutes. The popularity of eth-nic food is clearly the driving forcebehind the future of rice productssince it is a staple of most ethnicfood.

While interest in Chinese and Indiancooking is very popular, opportuni-ties exist to tap into the emergingmarkets of South East Asia, theCaribbean, South Africa and otherethnic cuisine. Trade analysts believethat manufacturers and retailers

need to educate and familiarise con-sumers through promotional strate-gies such as recipe suggestions.

Uncle Ben’s remains the marketleader in the rice category in Ireland.With it’s expertise and reputation forproviding perfect, fluffy rice thatnever sticks, Uncle Ben’s rice offersconsumers superior quality everytime. Uncle Ben’s offers severalboxed rice varieties, including LongGrain, Basmati, Wholegrain and ‘Boilin the Bag’ options – all of which arenow firm store cupboard essentials.

Uncle Ben’s 10 minute WholegrainRice can be cooked in half the timeof regular wholegrain rice, making iteasier to create fast and tasty meals.Uncle Ben’s Wholegrain Rice is idealfor consumers looking to boost theirrecommended daily allowance offibre for an extra health kick. It alsotakes into account consumers withwheat allergies or those requiring agluten-free diet.

Perfect for today’s busy consumer,Uncle Ben’s Express rice is availablein 12 different varieties includingfavourites such as Egg-Fried, LongGrain and Basmati. Uncle Ben’s Ex-press rice is sealed in a convenientmicrowaveable pouch, which meansconsumers can now have perfectfluffy rice in just two minutes with nohassle and no washing up. UncleBen’s is driving the growth in pouchrice (23% year on year) with a hugesampling activity programme todrive trial, extensive ATL campaign,heavyweight in store promotions andcontinuous innovation. Uncle Ben’shas 90% share of the pouch rice cat-egory.

Uncle Ben’s rice will continue itsheavy media activity in 2006 withthe launch of a new television cam-paign ‘Growing Family’ which will air

throughout the year. Uncle Ben’s isthe only rice brand in Ireland to besupported by national television ad-vertising. Uncle Ben’s will featureheavily in store this year with an in-tensive promotional calendar.

Roma, from IAWS, is a leader in theIrish rice market. Roma Rice is avail-able in 500g, 1kg and 2kg bags in avariety of flavours including, EasiCook, Natural Brown, Basmati.

Roma Boil in the Bag is available inthree verities including India Bas-mati, Egg Fried and American LongGrain. Roma Microwaveable Pot Ex-press is aimed at convenience andcomes in Basmati, Easi Cook,Mediterranean and Savoury Chi-nese.

Tilda has grown its business over thelast 30 years into an internationalfood brand selling in over 40 coun-tries. Its range includes Tilda RiceBasmati Rice, Tilda Easy Cook PureBasmati Rice, Tilda Rice Basmati &Wild Rice, The Original AmericanLong Grain Rice, Tilda Easy CookAmerican Long Grain Rice, TildaGiant Canadian Wild Rice, Tilda ThaiJasmine Rice, Tilda Arborio RisottoRice and Tilda Italia Pudding Rice.

The rice sector has seen constant growth in recent years. Rice benefits from the Irish love of ethnicfood and also manages to have a healthy perception. The grain itself has undergone some serioustrends in 2008. Global rice stocks are at a thirty year low with prices at a ten year high. As part ofthe surge in global food costs, rice prices on world markets jumped 50% by spring this year and have

doubled since 2004.

In Ireland the ambient rice market is still as popular as everwith consumers buying the category about every eight weeks.

CATEGORY: Rice

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The convenience sector has pushedsalads into the mainstream. Con-sumers today can get a healthy mealby grabbing a pre-packed mixedsalad at the supermarket or throwtogether the ingredients themselves.With salads come the accompani-ments of dressings, sauces andcondiments.

For a long time there has been a de-bate over salad sauces and whichwas better; salad cream or mayon-naise. The more upmarket mayon-naise comes out top with almostdouble the sales of salad cream.

Mayonnaise has long dominated thesauces and dressings market. Salesof mayonnaise have been driven byHellman’s, which has championed itsversatility, encouraging consumersto use it in sandwiches and as an ac-companiment to all kinds of meals,

not just salads. Meanwhile, saladcream has been less ubiquitouslargely down to lack of innovation.In future innovation in mayonnaise,salad cream and other dressings islikely to focus on exotic flavours, aswell as premium, organic and locally-produced and fair-trade brands. Newpackaging formats such as flexiblestand-up pouches, squeezy tubes,plastic tubs and individual portionsare becoming more popular.

In recent years the real success ofboth the mayonnaise and saladcream market has been the popular-ity of reduced fat and reduced calo-rie options, which have squeezed outstandard varieties. Consumer con-cern over healthy eating means thatreduced fat/reduced calorie productsnow accounts for as much as 52% ofthe mayonnaise market, and a hefty67% of the salad cream market.

Extra light varieties have proved par-ticularly popular.

Media coverage about healthy eat-ing concerns over rising obesity lev-els has meant that consumers areincreasingly focused on the amountof calories in products like mayon-naise and salad dressing and thisshould see market share pulled awayfrom full-fat varieties.

As a result of health consciousness,there has been an increase in saladconsumption in both low-fat and low-carbohydrate diet plans from whichsalad dressings and vinaigrette saleshave benefitted. This trend has con-tinued due to the success of pre-packed salad mixes, which spareconsumers the trouble of shreddinglettuce themselves and choppingtheir own vegetables.

The sauces and salad dressing market comprises dressings, and sauces, mayonnaise, salad cream,vinegar, mustard, horse radish, soy sauce, tartar sauce, and Worcestershire sauce. The householdpenetration of sauces and salad dressing is extremely high and most sales are primarily throughthe multiple sector. Although consumers are eating more salads they are eating less dressing

and paying more per bottle.

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CATEGORY: Salads & Sauces

Interest in green salads has led to agreater prevalence of salad dress-ings, ironic say some health experts,given that green salad is one of thehealthiest low fat foods around and alot of salad dressings contain highlevels of fat, as they are typicallymade with oil. However, vinaigretteoften uses olive oil as a base whichhas well known health benefits andas such has caused sales to increase.However, health orientated low fatdressings saw their sales lag behindthose of full fat regular varieties inboth value and volume terms, ac-cording to Euromonitor. Many con-sumers are beginning to realise thata lot of salad dressing, such as low-fat mayonnaise, are inferior to theirregular counterparts in both flavourand texture.

As opposed to concern for healththrough choosing low fat saladdressing, consumers are opting tobuy less low-fat salad dressing, andsacrificing quantity for quality, ac-cording to recent consumer data. Al-though consumers reduced theirintake of low fat salad dressing, theycontinue to demand health orien-tated products through the purchaseof organic, all natural products. Ofthe larger brands to benefit from thisis Newman’s Own salad dressingsand vinaigrettes which continue totap into this market with great suc-cess.

Convenience and health has obvi-ously done much to drive sales ofsauces and salad dressings. Con-

sumer’s desire for good nutrition, asopposed to low-fat, without sacrific-ing convenience has led to a dra-matic leap in sales of bagged saladand a less dramatic increase in thesalad dressing market.

The well known Chef TomatoKetchup and Sauce has been a firmfavourite with Irish consumers since1920’s. Chef Tomato ketchup has atangy spicy taste while Chef BBQsauce is a spicy, chunky sauce thatwill enhance any barbecued food.The most recent addition t the Chefrange is the new convenient squeezyTop Down format in a 390g size,which is ideal for small householdsand little hands. Since its launch in

November the new format hasproved very popular with con-sumers. An ideal accompaniment tosalads and side dishes is Chef Beet-root, Mixed Pickles and SilverskinOnions.

Research data shows that con-sumers buy dressings and baggedsalads for a number of uses and rea-sons. According to respondents,78% use salad greens to make sidedishes, 48% prepare main coursesalads and 44% make sandwichesand rolls with greens.

A growing number of consumersuse salad dressing in sandwichesand rolls, and dressings are benefit-ting from this trend.

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Marinades and dips are beingcrossed-merchandised with vegeta-bles, seafood, meat and other freshfoods.

Although salads are one of thehealthiest meal options, consumersoften drown their greens with highcalorie and/or high fat dressing. Thishas caused diet and nutritional con-cerns which has driven new productactivity.

The advents of diets like Atkins andSouth Beach have brought an influxof low-carb option through the years.Portion control, also helpful to thecalorie-conscious is being addressedwith roll-outs of individual dressingpacks. Individual packs also provideincreased variety, another importantfactor for consumers. Organics too,continue to rise, both in salad dress-ings and in salad greens.

There has been a new trend for of-fering more robustly flavoured saladdressings and vinaigrettes, with con-

sumers showing preference fordressings containing parmesancheese, garlic, blue cheese, basil andbalsamic vinegar.

As Irish consumers’ tastes have be-come more sophisticated over theyears, salad dressing buyers haveshown more interest inpremium/gourmet sauces, condi-ments and dressings. A wide varietyof offerings have made their way intothe market place; low-fat, low-carb,zesty new flavours, traditionalflavours marketed in many newways. The high level of householdpenetration and the varying ethnicand diet-driven demands of con-sumers suggest that niche saladdressings can find new ways of com-peting with the bigger brands.

The range of Don Carlos Olive Oilshas just been extended to includethree new health focused varieties ofolive oil.

Don Carlos Extra Virgin Olive Oil en-

riched with Omega 3 is designed forconsumers who want to ensurehealthy hearts and bodies. Omega 3oils are the good (polyunsaturated)fats and are well recognised by themedical profession as playing an im-portant role in brain function and inmaintaining heart health. Using DonCarlos Extra Virgin Olive Oil en-riched with Omega 3 in your diet isan effective way of increasing Omega3 intake for the whole family, as one15 ml serving (one tablespoon) pro-vides 18 per cent of the recom-mended daily intake of Omega 3.

Don Carlos Organic Extra VirginOlive Oil is a rich, fruity olive oil andis grown organically for the bestflavour. The oil is produced fromolives grown in Andalucia understrict environmental conditions, freefrom any chemical agent.

Don Carlos Extra Virgin Olive Oil en-riched with vitamins provides all thetraditional benefits of olive oil withadded vitamins A,D,E and K. All of

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these vitamins are required for car-rying out vital functions within thebody and are involved in the utilisa-tion of major nutrients including car-bohydrates, fats and proteins.

Kuhne, has been a family run busi-ness for ten generations, placinggreat importance on tradition andinnovation. Kuhne products aremade with the highest quality ingre-dients without using additives orpreservatives. Kuhne is synonymuswith the BBQ season offering con-sumers a wide variety of products tochose from. Kuhne Salatfix offers fullflavoured dressing enjoyment in arange of flavours - Herb, Italian,American Caesar, Thousand Islandand Balsamico.

Also included in the range are KuhneSauerkraut, Gherkins, PickledOnions, Beetroot, Mixed Pickles anda selection of traditional GermanMustards.

The Monini olive oil brand startedproduction in 1920 specialising inextra virgin olive oil. Today, ZefferinoMonini still personally tastes the oilsand selects only the best quality toensure the highest standards aremaintained in keeping with familytradition.

The range in Ireland now includesExtra Virgin, Pure Olive Oil, GrandFruttato, Grapeseed and BalsamicVinegar. BR Marketing will be sup-porting Monini the brand through-out 2009 with added valuepromotions.

Tomatoes which are each ready toenjoy straight away. This range is

perfect for those who want quick andconvenient appetisers or nibbles –serve straight from the pack for theperfect and most convenient anti-pasti. Giovanni di Firenze Olives areavailable in green, black and queenand delicious feta and olive salad.

Discover the real Mediterranean ex-perience with Giovanni IFirenze…the perfect party tapas.They are quick and easy to cook,whether steamed, boiled, fried,grilled, baked or barbecued. Recentinnovation in the range has seen thelaunch of Rob Roy Prawn Skewers, intwo different flavours, Mediter-ranean & Indian.

Lakeshore has been producing amouth-watering range of meal condi-ments for almost 25 years includingmustards, dressings, marinades,sauces and chutneys, which are per-fect for every meal occasion.

The Lakeshore seasonal range makeup the perfect ingredients for a culi-nary Christmas. The range of sea-sonal products includes; Christmaspuddings (for a luxurious dessert),goose & duck fat for perfect roastvegetables), cranberry sauce (to addto any chicken or turkey meal), hamglaze (to create the perfect Christ-mas ham), brandy butter& brandycream (for indulgent desserts),mincemeat and dessert coulis (deli-cious fruit sauces).

CATEGORY: Salads & Sauces

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Children hold an important placewith Snackfood at present and willcontinue to do so into the future iflegislation does not hinder manufac-turers too much. The reality of inci-dences of obesity levels has placedan emphasis on the significance ofnutrition and marketing to children.Snackfood manufacturers have comein for severe slack in recent yearsand often held accountable for mar-keting tactics that target children.Parents are increasingly aware of theimportance of nutrition and its im-pact on their children but still haveto contend with the ‘pester factor’.However, more and more schoolshave a ‘no-junk’ policy which banscertain snackfoods and soft drinksduring school hours. Snackfood man-ufacturers have fought back by of-fering more healthy ranges and

reducing fat, salt and sugar in exist-ing products

Snacking has emerged from years ofbeing stigmatised as unhealthy andfattening as cultural norms continueto favour the concept of snacking.Contrary to many sweet and savourysnacks, some elements of this sectorsuch as snack bars, lend themselveswell to health positioning. Snackbars make ideal carriers for practi-cally all types of healthy and func-tional ingredients such as omega-3,vitamins, minerals and fibre as wellas sophisticated weight manage-ment ingredients.

Research shows that 38% of con-sumers snack when they are relaxingat home in the evening. Adult snack-ing has emerged as an occasion in its

own right representing ‘me-time’during the busy working day. Ac-cording to a snacking report, 2% ofthose surveyed admitted snackingduring or after playing sport; 5%when with friends; 9% when at workor at their desk; 13% at specifictimes in the day; 15% when theyhad missed a meal and 21% whenthey are on the go.

This shows that snacking is not justconcentrated in one particular timeframe but also that snacking is in-home, and therefore consumers arepurchasing products for these snack-ing occasions when they are com-pleting their weekly shop.

As many as 57% of consumers claimto snack on fruit regularly and 22%claim to snack on vegetables and sal-ads. Consumers divide snacks intocategories based on ‘good’ and ‘bad’.While taste in all food consumptionis important, there is often a trade-off between indulgence and healthwhich means that the snacks peopleperceive as healthy are consumedfor their health benefit rather thanthe enjoyment of the product.

Snacking frequently throughout the day between meals, often replacing main meals may be ananathema to healthy eaters but it has fast become the norm for many people in Ireland today.Lifestyle changes like longer working hours and commuter times alongside an overall reduction incooking abilities and skills have all led to demand for food on the go and increased snacking. In2008, sweet and savoury snacks reached €360m, an increase of 7% in current value terms.

CATEGORY: Snacks

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CATEGORY: Snacks

A quote from a typical older familyof mixed gender in the C2 socio eco-nomic group states;“I think you as-sociate fruit as just some healthfood. You don’t think, ‘I fancy anapple’, you just look at it and eat itbecause it’s healthy and you want tobe healthy for a while.”This is a typical opinion to the notionof snacking and its division into in-dulgent ‘for me’ and healthy ‘must I’eating.

Snacking has been on a learningcurve for the last few years and hasemerged as a changed market in itscurrent state. According to mar-keters, two drivers of snacking be-haviour are emerging – functionaland emotional. The functional ele-ments of snacking seek to satisfy thephysical need of hunger and emo-tional snacking is about derivingcomfort and pleasure from the act.The challenge is to position healthysnacks on an emotional level that de-livers on taste as well as nutritionalvalue. Healthy snacks may need tobe positioned in a traditional con-venient ‘snackfood’ way. The upshotis that healthy snacks need to takeon the appearance of more ‘indul-gence’ packaging such as colour,convenience and size in order tocompete as traditional snackfood, as

likely to be chosen as a bag of crispsor a bar of chocolate.

A tall order perhaps, but it has beendone. Observe granola bars, nutssuch as pistachios and smoothies,which have been positioned along-side traditional snackfood. They areclose to point of sale and can befound on the same shelf as crisps,muffins or chocolate bars yet are ul-timately perceived as healthy snack-food. As consumers take moreinterest in health and diet, the abil-ity to offer products that provideboth taste and nutrition is clearly thesource for exploiting the potential ofheath snacking.

Although the outlook for snackinghas been less than optimistic in re-cent years, the market has started torecover after successive downturnsand developing a demand for pre-mium products such as hand cookedcrisps and certain snacks give causefor greater optimism, according tomarketers.

Equally, in reaction to the obesitylevels, manufacturers are reformu-lating old and creating new seg-ments. However, the challenges thatlay ahead include demographicchange as it becomes more difficultto pin down individual socio eco-nomic groups, as well as firmer gov-ernment control over advertising tochildren.

Crisps remain an integral part of thesnackfood market and the Irish con-sumption of crisps is twice the EU av-erage. Although the C1 socioeconomic demographic is identifiedas the core market for crisps, every-one else under 55 eats almost asmany of them; nine out of ten peo-ple under 24 eat crisps regularly.Pringles, Tayto, Walkers and HunkyDory’s are by far the favourites onthe Irish market.

2008 saw continued growth both invalue (+5.5%) and volume (+1.4%)versus 207. Crisps and snacks con-tinue to go from strength to strengththanks to strong performances fromleading manufacturers and develop-ment of key market sectors, most no-tably Walkers, who now have the No.1 crisp brand (Walkers and the No. 1snack brand (Doritos) in the market.

Total crisps are ahead 6.3% andsnacks up 4.7% on previous year,with the majority of this growth con-tinuing to come from the vibrant gro-cery (+8%) and symbols (+7%)sector. Within the category Sharingand Better for Your continue to rovestrong engine for growth.

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Sharing sector is in value growth by1.2% with Better for You +20.7%.Indeed Better for You now repre-sents 8% of the total due in no smallpart to the performance of brandssuch as Quaker Snack A Jacks and

Walkers Baked. Snack A Jacks is+20% growth and is now worth€2m to the category, with bakedcontributing €2.4m in 2008.

The Sharing sector is also a hugearea of growth for crisp and snacksand the sector is being shopped andin growth across all channels. Thetwo leading Sharing bag brands areDoritos (+13%) which is now worth€9.7m t the category, and WalkersSensations which is now worth€5.2m and last year grew it’s cashrate of sales by 1.4%.

With General crisp and snacks thereare also some strong growth per-formances; with Walkers core crisps+4% in 2008 and now worth€16.1m, Walkers Max +65 (€1.7m) and Wotsits which had agreat growth of 15.3% in 2008 andcontinues to be a strong snack brandin growth.

In July 2008 Walkers launched its‘Do Us A Flavour” with the backingof a €1.5m media campaign. Thesix flavours entered by the members

of the public will face the public voteto decide which one stays on salepermanently. Entries closed in Octo-ber and the winning packs hit theshelves in January 2009 with thefinal winner announced in May. Thewinner will receive 1% of net rev-enue sales each month for the dura-tion of the period that their flavouris on sale.

Overall our culture hasbecome accustomed toeating on the movecontributing to themajority of adults

admitting to eating on thego at least once a day.

CATEGORY: Snacks

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Kelkin offer a range of deliciousMicro Popcorns and the range in-cludes two low fat variants. It is avail-able in a multitude of formatsincluding a newly launched single sa-chet (100g) packing into convenientSRP, designed to set next to cashpoints. Kelkin Micro Popcorn is aconvenient, tasty snack which can beprepared effortlessly in minutes.Kelkin supported their Micro Pop-corn range during 2008 using BTLactivity and ran a three month com-petition with Pigsback.com givingaway over €1,500 worth of prizes.

BR marketing distributes Chio andTruller snacks. The brand has a verystrong performance last year. Withnew product introductions andstrong promotional plans similargrowth is expected this year. Therange of products include Chio PartyMix, Madi Mix, Stickletti, stickletti& Brezii and new introduced Chiopremium crisps (available in Low FatSour cream and Onion and Wild Pa-prka.

The truller range, which includesBacon Pep, will be extended thisyear.

The Pom Bear range from BR Mar-keting are potato snacks that are

shaped like a teddy bear and are tar-geted at 4-8 year olds. They aregluten free, with no artificial flavours,colours or preservatives and onlylightly seasoned. The range now in-cludes 19g singles in Original,Cheese & Onion, Salt & Vinegar andPrawn Cocktail and multipacks(Original and Cheese & Onion). Aheavy weighted campaign has beenplanned for 2009 with strong pro-motional activity and on pack pro-motions and product sampling.

However Ireland’s attraction tosnacking does not end with crisps,up to €300m was spent on confec-tionery, over €240m on bars and

boxes of chocolates, as well as theconsumption of 31,700 tonnes ofchocolate, 2,900 tonnes of chewinggum and 9,500 tonnes of sweets.The eating habits of Irish consumershave changed for good with snackingand grazing an everyday reality formost. One in four adults in Irelandskip breakfast every morning; one infive regularly skip lunch and 13% of1,000 surveyed regularly eats a fastfood meal

Overall our culture has become ac-customed to eating on the move con-tributing to the majority of adultsadmitting to eating on the go atleast once a day. Travel and lack oftime to sit and eat are the principalreasons for snacking on the go even

as one in seven admit they do so asa result of work commitments. Inter-estingly a similar proportion is seek-ing relief from boredom – rising to aquarter of all 15-24 year olds.

In the main manufacturers have re-sponded well to the trend towardshealthier eating by reformulating ex-isting snack products to reduce lev-els of salt, sugar and fat as well asintroducing new lines which containingredients such as dried fruit andnuts.

CATEGORY: Snacks

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A number of factors have given a re-newed focus to the soup marketwhich had slowed in growth in recentyears. Ambient manufacturers havefocused on healthy eating, the intro-duction of more filling ‘meal’ soups,and the increasing demand forhigher value fresh soups – all ofwhich have increased stimulation ofthe market in recent times.Chilled soup is one of the most pro-gressive segments of the soup mar-

ket, although the larger ambient sec-tor also returned to a positive per-formance in recent years. Sales ofdried soup are in long term decline.Chilled soup continues to maintainstrong growth both in the long termand the short term and continues tooutperform the overall soup market.In the context of the overall soupmarket, this is a strong performancegiven that the market as a whole isdeclining in volume.

Avonmore, Cully Sully, Private Labeland Searstar are growing and havebeen in growth since the beginningof 2009. Browne’s was showingstrong growth but this has been indecline since July 2008. Dingle Bayand Organic harvest have been indecline, according to sources, sincethe beginning of 2008.

New entrants to the chilled soupmarket remain small.

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The value of the Irish soup market is understood to be worth in the region of €70m, with Campbell’sSoup accounting for 30% of the market with its Erin and Campbell’s brands. The chilled soup

market has a value of €19m. Fresh and chilled brands like Avonmore Fresh Soups are extremelypopular and influenced by a number of consumer assumptions. The main driver in the soup marketremains convenience, coupled with the perception that chilled foods are often of a higher quality

than other prepared foods

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Paul Rankin and Bia Kids are theonly new entrants to this sector andbetween them have contributed€94k to the chilled coup category todate.

The Paul Rankin range took a 2.2%share of the chilled soup sector whenon promotion following its launch,but share dropped off following thepromotion.

Healthy eating has driven new prod-uct development (NPD), leading tothe introduction of recipes which arelower in salt, sugar, fat and free fromartificial colours, flavours, preserva-tives and MSG.

Some soup brands have had a poorreputation in recent years, and alongwith sectors like cereals were criti-cised as containing unhealthily highlevels of salt. Brands are increasinglyadapting a more natural and whole-some image.

Several manufacturers are attempt-ing to extend consumption beyondthe lunchtime/snacking occasion bypositioning their brands as more fill-ing meal options. The commitmentof leading manufacturers to bothNPD and main media support ismaking a significant contribution tosales growth.

Less formal eating occasions, thegrowth of the light lunch and grazinghave also influenced NPD’s in thesoup market. Soups in plastic bot-tles for example, allow users to helpthemselves to soup as they fell likeit. Once opened, the remaining con-tents of these bottles last up to fivedays in the fridge.

Microwaveable products also offerconvenience. Recent data showedthat over half of consumers askedagreed that soup is a good snack.Most also agreed that chilled soupin cartons were better quality thancanned soups.

Homemade soups are an importantfactor in the soup market with tradeestimates suggesting that as muchas one third of all soup consumed byhouseholds is accounted for byhome-made soup. Consumer re-search shows that 30% of all adultsmake their own soups during theyear and 19% consumed home-made instead of bought soups.Introducing new flavours into themarket has been another way inwhich suppliers have sought to cre-ate further sales growth.

They have also attempted to de-sea-sonalise the market (almost two-thirds of sales occur betweenSeptember to March) by encourag-ing the idea of soup as a summerproduct, with flavours designed to

be served as chilled, such as gazpa-cho.

While some more exotic flavourssuch as spiced lentil have made im-portant inroads, consumer researchshows that a few traditional recipes,such as tomato, chicken, mushroomand vegetable, are both the favouriteand main flavours bought by con-sumers. In addition, organic flavourshave become more widely available.The seasonal nature of the soupmarket is reinforced by consumersstocking soups, particularly cannedsoup.

This demonstrates the flexibility andconvenience of soup as a cooking in-gredient at home. Up to 25% of con-sumers asked said they used soup asan ingredient in cooking at home.Moreover, for many years, Camp-bell’s have encouraged the use of itscondensed soups range as an ingre-dient for cooking.

The light lunch is an importantsource of demand. Apart from in-home consumption, out-of-home sit-uations also present opportunitiesfor further growth. As the ‘soup &salad’ light lunch combination is derigueur in countless bistros andcafe’s many consumers may wish torecreate this eating occasion in thehome. As recession sinks in for manyconsumers the fall in restaurant eat-ing is a certainty, in-home cookingwill increase s well an attempt to em-ulate restaurant quality and style.Soup manufacturers would be wiseto offer more restaurant and gour-met recipes at reasonable prices,combining both quality and econ-omy.

Aside from the obvious issue of con-venience, taste and nutrition othersignificant factors contribute towhich households buy certain prod-ucts. For instance it is hardly worthmentioning that fridges and mi-crowaves are not only found in mosthomes but are essential when buy-ing fresh or chilled food products likesoup.

The future success of the soup market will depend on how wellmanufacturers can respond to consumer preferences and

tastes. In order to do this, they must continue to show a goodunderstanding of changes in consumer behaviour.

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CATEGORY: Soup

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Ownership of refrigerators is gener-ally very high across Europe, above90% in all instances. Household pen-etration is lowest in France ataround 90%, which is due in part tothe habit of buying fresh food on adaily basis in many of the southerlyand more rural parts of the country.

In Northerly countries like Irelandand the UK, consumers have less ofa daily fresh shopping mentality andtend to be more weekly shop hoard-ers, where cans of goods are storedin cupboards for rainy day occasions.Data regarding freezers remainsmore ambiguous, primarily sincemany households now own combina-tion fridge/freezers. Overall owner-ship tends to be highest in Northerncountries and falls in Mediterraneanregions.

Household penetration of microwaveovens is more varied across WesternEurope. At more than 80%, it is par-ticularly high in more Northerlycountries such as Ireland, the UK,the Netherlands and Sweden. Thisreflects the general popularity ofconvenience foods like soup in thesemarkets, with many products nowdesigned for ease of cooking withinthe microwave.

At the other end of the scale, house-hold penetration of microwave ovensis unsurprisingly low in Mediter-

ranean countries like Italy (35%) andGreece (36%) where home cookingusing fresh ingredients is moreprevalent.

Dry soup is the most popular soupin European countries, although inFrance, cartons, jarred and bottledsoup sell the best. Home-made soupis also marginally more important incountries like France, Italy andSpain, although it is as popular inIreland as quality and taste grow inimportance among Irish consumers.New ideas are currently the order ofthe day in the soup market. Foreigntravel has broadened consumer

tastes. Exotic varieties of soup havehad a big impact on the market. Pre-prepared ‘fresh’ chilled soups, soupsin jars, organic and gourmet, evensoup aimed at young consumershave all proved increasingly popularin recent years, as well as meat-freesoups aimed at the growing numberof vegetarians.

The future success of the soup mar-ket will depend on how well manu-facturers can respond to consumerpreferences and tastes. In order todo this, they must continue to showa good understanding of changes inconsumer behaviour.

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Tinned Food is a bit like frozen food in that it is set to have a renaissance due toseveral significant factors. Clearly the deteriorating economy has reflected on every

sector in business and industry and it’s back to the drawing board for many.However, certain sectors will have greater appeal to consumers looking to cull

the expense and waste on their shopping list. Tinned food has a certain ‘rainy day’reputation but its purchase cuts down on waste and is value for money, key

concerns for cautious shoppers.

CATEGORY: Tinned

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Despite the current recession tinnedfood generally does well in this coun-try and has an estimated value of€243m and data reflects positivelyon the market. A very rounded 99%of the Irish population claims to buytinned food throughout the year re-gardless of season and each house-hold purchases tinned food anaverage of once a week.

The main segments in this category

include tinned beans, fish, fruit andvegetables. Data shows an added84,000 homes surveyed purchasedtins of soup once a week in 2008,spending and average of €30.

In general fish is more popular thanever with health conscious con-sumers and its Omega-3 propertiesare a great draw for consumers.Data shows that tinned fish like tunaand salmon featured highly for thefirst time in the surveyed Irish weeklyshopping basket.

Data showed that tinned sweet cornwas purchased by 45% of house-holders; with average annual spendat €6.90, which was slightly behind2007’s figure – indicating that someof the new households entering havespent less on the category.

Tinned fruit also attracted somelighter shoppers this year as averagespend per household dropped by80c to €14.30. This came as anextra 40,000 homes bought in thetinned fruit market during 2008.

One of the stalwarts in the tinnedfood category is tinned beans and noshopping basket is complete withouteither Batchelors or Heinz beans. Ac-cording to data, baked beans waspurchased by 88% of householdsonce a week and its average spendper household rose by to €21.20with spend per trip averaging€1.60.

H.J. Heinz boasts a vast range ofcanned foods form the iconic HeinzBaked Beans to Heinz ready toServe Soups, Heinz Spaghetti to theWeight Watchers from Heinz range.The brand is certainly the most pop-ular in the country and is available inthree sizes plus a reduced sugar andsalt variety, each with easy-open ringpull.

In the soup segment, Heinz Cream ofTomato Soup continues to performstrongly with its range of convenientHeinz Ready to Serve Soups. TheHeinz Farmers Market range ofsoups made with selected ingredi-ents and inspired by farmers’ is alsoa poplar choice among consumers.The range comes in a larger 515gcan, and comprises generous por-tions of traditional style recipes in-cluding Chicken & Country Vegetable

and Lamb & Root Vegetable.

Heinz also offers the popular rangeof tinned Weight Watchers fromHeinz Soups This product comes ina 295g and 400g tins with each va-riety clearly indicating its weightWatchers Points Value. The WeightWatchers from Heinz tinned rangealso includes Baked Beans, PastaMeals and Spaghetti.

Heinz is the unrivalled leader in thetinned spaghetti segment, consis-tently developing its range of tinnedspaghetti products. Made withMultigrain pasta, Heinz Spaghetti isthe definitive brand leader withHeinz (straight) Spaghetti and HeinzSpaghetti Hoops being the cate-gory’s strongest performers. HeinzAlphabetti Spaghetti is also an im-portant part of the Heinz range,available in both a 205g and 400gsize.

Convenience plays a strong role onthe sale of tinned food and spaghettihoops are a quick and easy meal so-lution, not only for adults, but forchildren as well. Manufacturers arecatering for this market by providingindividually portioned, easy to opentins, often adding a fun element withalphabet and animal shapedspaghetti products.

Ireland’s favourite baked beans,Batchelors has an impressive 64%market share. The brand continuesto meet the needs of the market witha wide range of sizes and varieties tosuit all household sizes. Batchelorscanned foods range are a healthychoice – they are a good source ofprotein and fibre and are low in fat,saturated fats and sugar. They arealso gluten free and are suitable foranyone following a vegetarian diet.

Batchelors continues to create inno-vation in the bean category with theintroduction of Heartwise Beansavailable in 420g and 225g sizes.Heartwise boasts the same greattaste you would expect from Bache-lors beans but contain 20% lowersalt and sugar and have addedOmega 3 and vitamins A&E.

CATEGORY: Tinned

F o o d F i n d e r 2 0 0 9 1 1 7

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CATEGORY: Beer

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Per capita alcohol con-sumption of beer contin-ued to decline in 2008,with consumption levelsdown 3%, at 10.25 litres.There has been a steadyshift of alcoholic drinksvolume sales from the on-trade to the off-trade.This movement came as aresult of rising unit prices,as well as the effects ofrandom breath tests.

This change in drinkingculture was evidentthroughout Ireland. A lotof this has been due tothe concept of cocooningwhich is characterised bythe propensity of manyconsumers to do the bulkof entertaining in thecomfort of their ownhome. Naturally, the co-cooning trend has seriousconsequences for publi-cans as well as brandowners, many of whichare being forced to adjusttheir portfolios and re-duce their emphasis onthe struggling on-tradesector.

There are three majorplayers in the Irish beermarket; Diageo Ireland,Heineken Ireland andInBev, followed by a sig-nificant number of localwholesalers and im-porters. At present thereare an estimated elevenmicrobreweries in Ireland.

Beer imports into the State comeprimarily from the EU, particularlythe UK, the Netherlands and North-ern Ireland. The bulk of beer exportsare from stout, with Guinness Stoutbeing the largest. Exports to North-ern Ireland are primarily Diageobeer products since Diageo has nobrewing facilities in Northern Ire-land.

The Irish beer market is divided intofour distinct segments; lager, stout,ale, and non-alcoholic/low alcoholic(NAB/LAB) beer. While the marketshare for ale has increased over theyears, the market share for stout hasdeclined reflecting changes in beerconsumption and the appeal of con-tinental and American beers as morefashionable, particularly amongstyounger consumers. The lager seg-ment has a market share of 63%while stout has 32%, a much lowerfigure for the latter compared to itsheyday when it represented as muchas 70% of the market.

The ale segment, like stout has alsosuffered from the trend towardslager consumption. A lack of any in-novation and absence of a ‘real ale’culture has limited development inale. NAM/LAB has a very small mar-ket share with little innovation in re-cent years. For the distribution ofbeer, a distinction is made betweenthe on-trade and off-trade channels.The on-trade comprises pubs, clubs,restaurants and hotels. In 2006, al-most two-thirds of beer consumedwas via the on-trade channel. In2008, there was 9,949 pub andclub licenses in operation of which7,000 were stand alone pubs. Fromthe period between 2000 and 2007,the number of on-trade premises de-creased by almost 14.5%.

The main retail customers in the off-trade are the large multiples (Tesco,Dunnes) and discounters (Aldi andLidl).

Off-licenses and petrol stations arestarting to become more importantoff-trade channels, given the growingtrend towards in-home consumptionof beer. Most off-licenses are one-person operations and very few play-ers own more than two or threestores. Over the last eight years, thenumber of off-trade premises has in-creased by 150%

Despite the importance of the on-trade and its significance in Irish cul-ture, bar consumption in theon-trade channel has been decliningin recent years. Between 2003 and2007, the on-trade share of totalvalue fell from 79% to 67%. Amongthe main reasons for the decline ofon-trade sales and the increase inoff-trade sales are; the smoking ban,growing efforts to limit alcohol con-sumption, the introduction of ran-dom breath testing, and multi-packoffers by multiples.

CATEGORY: Beer

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Irish drinkers are the second high-est consumers of beer in Europe,behind the Czech Republic. How-ever, as stated earlier in both theRepublic and Northern Ireland, pubsales of beer by volume have de-clined in the last number of years.Due to a combination of growing in-home consumption, the rising priceof on-trade beer and the smokingban.

Faced with the unfortunate couplingof declining volume sales and thepressure of shareholder commit-ments, some beers have raised theaverage barrel prices to gain backprofitability. This placed furtherpressure on publicans, leadingsome boycotting of certain brewersand thus providing an opportunityfor alternative and foreign brands,in recent years.

Some consumers choose to drinkmore in-home before they go to thepub while also enjoying more casualbeer drinking during the week. As aresult value sales of beer from off-li-censes have risen. Another prob-lematic situation for beercompanies is the fact that the quan-tity of beer drinking in Ireland hasbeen in decline. Health motivations,media spotlight on binge drinking,rise in popularity of wine and ciderand less incentive to go to the pubare just some of the reasons behindthis worrying trend.

In essence, the beer market is goingthrough a period of readjustment.One of the principal trends to haveevolved from this transition periodis the growth in bottled lagers,which has ultimately contributed tothe decreased volume of beer soldoverall. However, this slowing mar-ket is regaining momentum in termsof value due to the higher price perlitre of bottled water.

The smoking ban, introduced in2004, has been hailed as a successamongst various health and gov-ernment agencies, along with themajority agreement by consumers.However, the on-trade has been hithard with alcohol consumptionfalling and this has a directly ad-verse affect on beer.

Similarly, the abolishment of theGroceries Order in 2006, which

kept prices of groceries at an artifi-cially high level, has resulted in aprice war on alcoholic drinks. This,coupled with the significant increasein the presence of multiples withinthe off-trade, has resulted in lowerprices of alcohol with which the on-trade is finding it hard to compete.

As consumers continue to shift theirdrinking patterns from pub drinkingto in home drinking, on-trade estab-lishments have suffered in terms ofalcohol consumption, whereas theoff-trade has gone through a surgeas a result. Due to this decline in vol-ume sales in the on-trade, most ofthese establishments have incorpo-rated other services including food inorder to increase revenues.

In Ireland, more than any othercountry in Europe, a drinking occa-sion involves binge drinking. Figuresshow that up to 48% of men and16% of women claim to binge drinkat least once a week. The govern-ment has continued to try to tacklethis problem along wit increased co--operation from the drinks industryin order to promote drinkingsmartly.

Drinking alcohol is regarded as aleisure activity so as the on-and-off-trade continue to compete with eachother; they also face competitionfrom other leisure activities such ascinemas, shopping etc. It is there-fore, essential to compare the ex-penditure on leisure to theexpenditure on alcohol.

The fall in the proportion of expen-diture in alcohol compared to leisureindicates that as consumers con-tinue to spend more time on leisure;this does not necessarily involve ex-penditure on beer.

In essence, the beermarket is going through aperiod of readjustment.One of the principaltrends to have evolved

from this transition periodis the growth in bottled

lagers, which hasultimately contributed to

the decreasedvolume of beer sold

overall.

CATEGORY: Beer

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CATEGORY: Beer

This reiterates that both the on-and-off trade are in direct competition toother venues, such as cinemas forthe consumer’s ‘enjoyment money’.

All of this reminds big brewers of thechallenges that are in place for beer.After all, beer is the most popularchoice for consumers through theon-and-off trade sectors.

The Players:The market leader and by far thelargest brewer in the state is DiageoIreland, which is part of the DiageoGroup. Diageo owns the number onebeer brand, Guinness, and producesother important brands under li-cense. Moreover, it also has a verysignificant position in the spirits sec-tor and sells wines and other alco-holic beverages. Diageo is veryactive in the Irish beer market withdifferent brands, which are partlyowned and partly licensed includingGuinness, the largest beer brandrepresenting in volume an estimated51% of Diageo beer sales in Ireland;Budweiser, licensed from Anheuser-Busch representing an estimated24% volume sales of Diageo; Carls-berg with 11% volume sales; Smith-wick’s with 9% volume sales andHarp 2%.

Heineken Ireland is another leadingplayer in the Irish beer market, par-ticularly since its takeover ofBeamish & Crawford. Heineken Ire-land has its own brands as well asimported brands. Its portfolio in-cludes leading names such asHeineken with estimated volumesales of 78% of Heineken’s sales;Coors which represents 13% volumesales; Murphy’s 7%, Amstel 2%. Itsbrands also include Miller which hasvolume sales of 47%; Fosters, theAustralian lager beer which has 20%volume sales; and Beamish whichhas volume sales of 23%.

InBev Ireland is part of the interna-tional InBev N.V. which is currentlythe biggest brewer in the world. Themain brands sold by InBev includedon the Irish market are the ex-tremely popular Belgian beer StellaArtois, which represents an esti-mated 32% of the sales of InBev;Tennents representing an estimated19% of volume sales; and Beckswhich represents an estimated 17%of InBev sales.

Coman’s Wholesale is a drinkswholesaler and distributor that sellsbeers and other alcoholic and non-alcoholic drinks. Coman’s does notbrew beer but is a significant com-petitor by virtue of being able to im-port brands from overseas. Comansowns the Dutch Gold and Prazskybrands which it sources from differ-ent brewers on the continent. DutchGold is a successful off-trade lager (with a 7% share of the off-tradelager sector).

Barry Fitzwilliam Maxxium (BFM) isa drinks wholesaler and distributorthat sells beer and other alcoholicand non-alcoholic beers. BFM actsas agent for different foreign beersthat are not active in the country.The main brands imported and soldby BFM are Corona (Mexico), King-fisher (Indian) and San Miguel (Fil-ipino).

Premier International Beers has

been importing beers to Ireland forover 25 years. It was the first com-pany in the world to import Russianbeer after the fall of the Iron Curtain.The company boasts a wider rangeof the best beers from every conti-nent in the world than any otherdrinks importer.

These beers stretch across a broadspectrum of lager experiences. Thecommon theme is that these beersare full in character - whether subtlycomplex, or rich in flavour. Its rangeincludes beer from Australia, NewZealand, Eastern Europe, SouthAfrica, Italy, Germany, the Far Eastand the UK. Many of these interna-tional brands include amongst oth-ers; Maisel’s Weiss from Germany,Newcastle Brown Ale from England,La Trappe Whitte from Holland,Toohey’s New from Australia, Stein-lager from New Zealand, Castle fromSouth Africa, Moorshead fromCanada.

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Over the last two years, the cidermarket has undergone a completereversal of fortunes transformingfrom a mature static trading envi-ronment in decline to an innovativeand reinvigorated market.

This stunning change is widely at-tributed to the ‘over-ice’ affect, aserving innovation promoted byC&C’s Bulmer’s and Magners brandin the UK, which is now being emu-lated by other brands. Cider has onlyhalf the penetration levels of lagersin the off-trade but as cider contin-ues to grow in popularity throughsuch brands as Bulmers and Kop-perburg, cider could yet outshine

lager as it appeals to both makes aswell as females.

However, this innovation has not ca-pitulated cider growth alone; thepremium end of the market is per-fectly position to meet the con-sumer’s increasing demand for local,natural and premium products withinteresting derivation.

The increased awareness of cider,brought about by brands like Bul-mers has stimulated interest in thiscategory as a whole. Once a con-sumer has a taste for cider; theytend also to explore the premiumand artesian offerings. However,

some people still see cider as an oc-casional drink and increasing theusage occasions and consumersrepertoire to include cider will becrucial to the continued success ofthe brand.

The time is right for a re-evaluationas the cider market has had mo-mentum through growth over thelast number of years. Changing con-sumer attitudes has influencedstrong growth in cider. However, re-lying on good summer for salessurges has to be replaced with ayear-round consistency as summershere continue to be a wash out.

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Tinned Food is a bit like frozen food in that it is set to have a renaissance due to several significantfactors. Clearly the deteriorating economy has reflected on every sector in business and industry and

it’s back to the drawing board for many. However, certain sectors will have greater appeal toconsumers looking to cull the expense and waste on their shopping list. Tinned food has a certain‘rainy day’ reputation but its purchase cuts down on waste and is value for money, key concerns

for cautious shoppers.

CATEGORY: Cider

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Cider is growing in popularity in theoff-trade. The market has a value of€100.0m. In the off-trade the mar-ket is worth €351m. Both the off-an-on trade channels haveinteresting consumer dynamics

which could be interesting to thecider market.

Younger consumers in both the Re-public and Northern Ireland aremore likely to use both the on-and-

off-trade. There is up to 40% pointdrop between those aged 18-24 and65+ who drink alcohol both inNorthern Ireland and the Republic,on-and-off-trade.

More people drink in-home. How-ever, there is little difference in offand on-trade figures in those aged18-24. This is as a result of the so-cial culture of drinking in Irelandwhere younger adults tend to take adrink in the house if they are notgoing out because it is the weekend.

In terms of social group, ABs aremore likely to consume alcohol inboth the on-and-off trade in the Re-public at 62% and 69% respectively.These figures are around 20 per-centage points higher than theircounterparts, group E. This indicatesthat those with more disposablemoney are more likely to consumealcohol.

C&C are clearly the leaders in theIrish cider market with its ciderbrands Bulmers. Alcohol, particu-larly cider and beer accounts for themajority of C&C’s revenue and thegroup has done much to promotecider as a trendy and enjoyable al-cohol beverage in Ireland.

The problem which persists for cideris that it relies on seasonal spikes,namely a sunny summer. Unfortu-nately the last two years have beenamong the worst summers in recorddesecrating summer sales of cider.

Cider manufacturers will have towork hard to promote cider as a yearround drink as regular as beer andspirits and not associated with goodweather that does not occur in Ire-land.

Younger consumers in boththe Republic and NorthernIreland are more likely touse both the on-and-off-trade. ... In terms of socialgroup, ABs are more likelyto consume alcohol in

both the on-and-off-tradein the Republic at 62%and 69% respectively.

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CATEGORY: Cider

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White spirits represents the largestsector in the spirits market, repre-senting an estimated 44% of totalspirits sales in Ireland. White spiritsare defined as those that are colour-less; the most frequently consumedbeing vodka, gin and white rum.These spirits are popular for mixingdue to their milder taste and clarity.

There have been challenging timesfor the spirits sector in the Republicfor a number of reasons. Tax in-creases and the smoking ban con-tinue to impact sales. Equally,commoditisation has become a diffi-culty for the larger drinks compa-nies. As the main brands such asGordon’s or Smirnoff dominate sales,consumers are used to referring tothe product by its generic name andtend to order ‘vodka and coke’ or‘gin and tonic’ as opposed to‘Smirnoff and coke’, or Gordon’s andtonic’. The only exception to the ruletends to be Bacardi. As a result,value brands maintain a strong posi-tion in the off-trade in volume terms.

The white spirits market is value at€553m based on volume sales of8.8 litres. Overall growth in this mar-ket is largely due to sales of vodka,which represent 78% of sales. As

vodka has the highest penetrationlevel of all spirits it is the standardspirit for most consumers to drink.In this market, Smirnoff is the leaderwith an estimated 68% share of themarket in Ireland and 80% of vodkavolumes. A key trend which hasemerged is that flavoured vodkas aregaining a strong foothold with mostof the top vodka brands having aflavoured variant.

Gin sales represent about 14% oftotal spirit sales in Ireland. The mar-ket has endured relatively flat salesof 1.2m litres in Ireland. Some mar-ket insiders believe the problem withgin lies with its connotations as an‘older persons drink’ as it is stilllargely reliant on the 45+ agegroup.

The gin category tends to be domi-nated by the two main brands ofGordon’s gin and Cork Dry Gin, withthe premium brands of Bombay Sap-phire believed to be the third largestgin brand.

White rum accounted for 8% of totalwhite spirits market, selling 0.7 mil-lion litres. Data shows no growth ei-ther in the on-or-off trade sectors.

The off-trade continues to be themain channel for sales of white spir-its overall and accounts for 52% vol-ume sales in Ireland. Its relevance asan avenue for further sales grew by12%. Analysis of leisure activityamong consumers has found that athome drinking has caused a greatupset to the growth of on-tradesales.

According to Mintel, the miniaturesmarket is still playing a significantrole within the alcoholic beveragemarket, particularly the off-tradesector. The triumph of brands likeBailey’s Minis shows how spiritsmanufacturers capitalise on interestfrom infrequent users who may notordinarily purchase a 70cl bottle ofspirits for home consumption. Un-fortunately many spirits brandsavailable in miniature bottles, arenot backed by sales or marketingclout and remain gathering dust onback shelves. Market researchersbelieve that a number of white spir-its manufacturers could greatly ben-efit enhancement of sales byexploiting the miniatures sector.

The overall spirits market is showingno particular overall growth in sales

There are few who will doubt the impact of boom times on the drinks industry. It has been prettymuch free-sailing for all drinks manufacturers over the last 12 years. Never has a population had somuch [perceived] cash to play with. As much as boom times reflect the drinks industry, down times, orrecession have even further reaching consequences. Irish consumers have been slowing down andspending less for a couple of years now, long before the dreaded ‘recession’ word was ever

emblazoned across a newspaper. Increased activity in the off-trade has reflected a trend towardsin-home leisure and entertaining and this has acted as a direct hit on the on-trade and drinks

manufacturers. The coming few years will be exceedingly interesting ones for the industry, as well asinteresting to see who will improvise, ride the storm or fail to meet some very real challenges.

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CATEGORY: Spirits

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with vodka being the only marketshowing growth. The question arisesas to why vodka has outshone gen-eral trends affecting all other spirits.The fact that vodka is tasteless, andas such a more adaptable mixer isan obvious factor but another is thechanging ethnicity of the Irish popu-lation.

In Ireland, an estimated two-thirds of

the population increase is attributa-ble to net immigration, with immi-grants from eastern Europecountries accounting for about 40%of migration. As vodka is the tradi-tional drink in a lot of these coun-tries this fact alone has been amajor driver in its increase in salesas well as the increased number ofbrands on the market.

If CSO figures are any indicator, thistrend for a net gain in migration willcontinue to affect the Irish popula-tion over the next two decades. Con-sequently, as this immigration islargely anticipated from eastern Eu-rope further increases in vodkasales are also to be expected.A number of leisure and demo-graphic factors have been affectingthe spirits market in Ireland in re-cent years. There has been a pro-jected decrease in 18-24 year-olds.This is likely to have a serious im-pact on the white spirits market.This age group has generally beendriven by leisure and a pocketful ofdisposable income, particularly asthey were largely unfettered bymortgages etc. However, the boomtimes have left us and this agegroup may still be out lapping it up

but recession will undoubtedly put atemporary stop to it.

The 25-34 age group is significantfor the sales of vodka as they havemore disposable income and havetended to expend a higher propor-tion on social activity. They have alsomore leisure time and a greater de-sire to spend this leisure time todrinking in a social setting, whether

it is in a bar, club or at home. In thiscategory vodka is the favoured drinkwith which to get things started withor ‘warm up’ before going out in thisage group.

This age group is increasing in theRepublic and there are some factsabout them that drinks manufactur-ers should be paying attention to.This age group is more likely to hold

off from marriage or settling down.When they go out, these individualsvisit more ‘trendy’ or ‘style’ bars.Some of these bars gave dedicatedrelationships with particularbrands, increasing sales and aware-ness of them, and potential futurepurchase.

The overall white spirits market isexpected to grow by 5% up until2011 with an average annualgrowth rate of 1% per annum. Con-tinued immigration will contributeto this volume growth in both theon-and off trades while rum and ginshould remain static overall.[Source: Mintel]

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CATEGORY: Spirits

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Barry Fitzwilliam Maxxium

The beginning of 2004 saw two al-coholic drinks distributors, BarryFitzwilliam and Maxxium Irelandcreating a strategic partnership.Barry Fitzwilliam (BFM) has an esti-mated turnover of between €55m to€60m. The incorporation ofMaxxium added distribution con-tracts for such brands as Jim Beam,Absolut vodka, which comes in fiveflavours, Remy, Cointreau and After-shock.

BFM specialises in the distributionof a complete range of spirits andwines from France and around theworld. Key spirit brands include Ab-solut, Aftershock, Sambuca and Fa-mous Grouse. The company providesa nationwide service, and has twoadministration centres, Cork andDublin.

In early, 2006 BFM landed a €12mcontract to distribute Courvoisier,Harvey’s Bristol Cream, Cockburn’sPort and Teacher’s whisky amongother brands, previously owned byAllied Domeq and distributed byC&C.

In 2004, the Great Spirits Company(GSC), based in New York, an-nounced that GSC was mergingwith Ireland’s Roaring Water BaySpirits Company to form CastleBrands Inc. The Roaring Water BaySpirits company had enjoyed greatsuccess with its Boru Vodka andClontarf Irish Whiskey, and the re-lationship between the two compa-nies began when Great Spiritsstarted importing Boru Vodka intothe US in 2001.

Castle Brands alcoholic drinksrange includes Boru Vodka, SeaWynde, Brady’s Irish Cream, CelticCrossing, Pallini Limoncello, Knap-pogue Castle Irish Single Malt,Clontarf Irish Whiskey.

In 2006, Castle Brands’ Interna-tional sales totalled 43% of totalcase volume and experienced sub-stantial increases up from 95,870cases in 2005 to 117,154 cases.Rum was the fastest growing cate-gory for the company’s Interna-tional business, as a result of apartnership with Gosling, aBermuda based rum producer, withan increase from 400 cases in2005 to 13,500 cases in 2006.Liqueur and cordial case sales in-creased 104%, as did vodka saleswhile Irish whiskey sales were stag-nant. In 2009 Barry Fitzwilliam ac-quired Castle Brands.

Cantrell & Cochrane

Group sales for this well knowncompany are heavily weighted to-wards the Republic which accountsfor 83% of sales. Northern Ireland,on the other hand, accounts for 5%

of sales, with the remaining 12%coming from international trade.

Holywood & Donnelly is the licensedtrade division of the C&C Group inNorthern Ireland. The company em-ploys about 70 people across allbusiness operations and distributesalcoholic drinks in the on-licensetrade in Northern Ireland, includingbars and restaurants.

In the FAB sector, C&C distributesWKD, Kulov Ice and Reef. Ciderunder the Magners and Bulmer’sbrands is another successful brandwith Bulmer’s holding 81% of the en-tire trade in cider in Ireland, includ-ing 94% of the on-trade.

CATEGORY: Spirits

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CATEGORY: Spirits

Castle Brands IncIn 2004, the Great Spirits Company(GSC), based in New York, an-nounced that GSC was merging withIreland’s Roaring Water Bay SpiritsCompany to form Castle Brands Inc.The Roaring Water Bay Spirits com-pany had enjoyed great success withits Boru Vodka and Clontarf IrishWhiskey, and the relationship be-tween the two companies beganwhen Great Spirits started importingBoru Vodka into the US in 2001.

Castle brands alcoholic drinks rangeincludes Boru Vodka, Sea Wynde,Brady’s Irish Cream, Celtic Crossing,Pallini Limoncello, Knappogue Cas-tle Irish Single Malt, Clontarf IrishWhiskey.

In 2006, Castle Brands’ Interna-tional sales totalled 43% of totalcase volume and experienced sub-stantial increases up from 95,870cases in 2005 to 117,154 cases.Rum was the fastest growing cate-gory for the company’s Internationalbusiness, as a result of a partnershipwith Gosling, a Bermuda based rumproducer, with an increase from 400cases in 2005 to 13,500 cases in2006. Liqueur and cordial case salesincreased 104%, as did vodka saleswhile Irish whiskey sales were stag-nant.

DiageoDiageo controls some of the mostsuccessful and prominent brands inthe business in Ireland. As well asdistributing beverages on behalf ofother brewers and producing otherdrinks brands under license, thecompany has several priority brandswhich it markets globally, includingGuinness, Smirnoff, Johnnie Walker,Baileys, Captain Morgan and theand the Cuervo tequila range.

Smirnoff Vodka and Gordon’s Gin re-main the key players in the whitespirits market in Ireland. In factSmirnoff is a major part in the entire‘spirits’ segment. Gordon’s positionis not number one in Ireland how-ever, this accolade goes to Cork DryGin. Gordon’s Gin has recently triedto play upon its dominance with anadvertising campaign centred on theconcept of ‘Gordon’s and Tonic’ asopposed to simply ‘gin’.

Edward Dillon & Co2007 saw spirit and wine distribu-tors Edward Dillon & Co move fromits long-established premises onMountjoy square to 1,248 sq metresof office space in Estuary House ineast Point Dublin. Edward Dillon &Co is a wine and spirit distributorwith a turnover of an estimated€150m. In 2004, Diageo sold its33% share in the company andended a long standing distributionagreement with Edward Dillon to dis-tribute some of its top brands.As a result of the new arrangement,

Bacardi, Brown-Forman and MoetHennessey increased shareholding inEdward Dillon & Co to take up thefull issued share capital of the com-pany, and each has entered into newlong-term distribution agreementswith the company. Among its topbrands include, Grey Goose Vodka,Bacardi, Bombay Sapphire Gin, Bac-ardi Breezer range, Hennessey,Southern Comfort, Jack Daniels, Car-men Wines, Eaglehawk, Santa Julia,

Wolf Blass, Moet & Chandon andSandeman.

FindlaterGrantsGroup sales for this well known com-pany are heavily weighted towardsthe Republic which accounts for83% of sales. Northern Ireland, onthe other hand, accounts for 5% ofsales, with the remaining 12% com-ing from international trade.

Holywood & Donnelly is the licensedtrade division of the Findlater Grantsin Northern Ireland. The companyemploys about 70 people across allbusiness operations and distributesalcoholic drinks in the on-licensetrade in Northern Ireland, includingbars and restaurants.

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2008 sees some new additions tothe portfolio. this year Findlater-Grants have introduced a new spiritto both our portfolio and the IrishMarket – Russian Standard Vodka.Russian Standard Vodka is Russia’snumber one premium vodka and isthe only premium vodka distilledand bottled exclusively in Russiaavailable on the Irish market.

For over 25 years Grand Marnierhas been the most widely exportedFrench liqueur. Today Grand Marnieris available in over 150 countries. Sogreat its success that a bottle ofGrand Marnier is sold every two sec-onds worldwide. Grand Marnier haslong been the liqueur of choice foruse in a variety of cocktails and thiscontinues to be the case. Any barwould seem to be lacking withoutthe distinctive Grand Marnier bottleamong its offerings.

The Marie Brizard brand was cre-ated in Bordeaux, a regionrenowned throughout the world forits tradition of quality wines, in1755. Since then, the brand hasgrown from strength to strength withits growth period fuelled by the com-pany's decision to branch out into awide range of cocktail-basedliqueurs, spirits and syrups. In Ire-land, the Marie Brizard brand is veryprominent in the cocktail sector. TheMarie Brizard brand of liqueurs hasa reputation and a know-how thatare rivaled anywhere in the worldand thus their liqueurs are a must inthe typical Irish cocktail.

Glenfiddich, the World’s no. 1 singleMalt Scotch Whisky, is the only High-land malt whiskey to be distilled,matured and bottled at its distillery.Unlike many other malt whiskiesthat bottle their expressions at 10years, Glenfiddich is always at least12 years old when bottled. It is notsurprising therefore that Glenfiddichis the most awarded single maltScotch whiskey in the world – havingwon more IWSC and ISC awards thanany other single malt since 2000.

Tullamore Dew, one of Ireland’s finestand most widely distributedwhiskeys, was first distilled in 1829in the small town of Tullamore inCounty Offaly.

The name derives from the initials of

an early owner, Daniel E. Williams –DEW.

Tullamore Dew is the fastest growingIrish Whiskey and is now the numbertwo bestseller in the world (IWRS2007). It is the number one sellingIrish whiskey brand in Germany,Sweden, Denmark and the Czech Re-public, and the leading overallwhiskey brand in Bulgaria andLatvia, outselling Scotch by a signif-icant margin.

In addition, the brand announced a20% growth in the year to February2008, making Tullamore Dew by farthe most dynamic brand of Irishwhiskey internationally.

Distributed in the Republic of Irelandby FindlaterGrants, Russian Stan-dard Vodka is Russia’s No.1 Pre-mium vodka and ranked 4th fastestgrowing spirits brand globally in2007 (Impact Magazine Feb ’08).Since the brands launch in spring2008 in Ireland it has secured na-tionwide distribution and supportedby a heavy weight advertising cam-paign awareness for Russian Stan-dard vodka has risen to 41% of Irishvodka drinkers (Millward Brown IMSResearch, Jul ’08). Already a classicin Russia, the homeland of vodka,Russian Standard is rapidly becom-ing a signature choice the worldover.

Irish Distillers LtdIrish Distillers is a division of PernodRicard and as such distributes awealth of premium brands both inIreland and internationally. It dis-tributes the products itself in Ire-land.

Its brands include Huzzar Vodka,AB-SOLUT vodka, Cork Dry Gin, PernodRicard, Malibu, West Coast Cooler,Black Bush, Bushmills, Jameson,Murphy’s, Paddy’s, Powers, Jacob’sCreek, Ernest & Julio Gallo, LongMountain, Martell.

Few deals in the world of interna-tional drinks matched last year’s ac-quisition by Pernod Ricard,theparent company of Irish Distillers, ofthe iconic Swedish vodka brand, AB-SOLUT. As the number one premiumvodka brand in the world and as thefourth largest spirit brand, ABSO-LUT went from selling 10,000 casesin 1979 to selling 10.7 million casesin 2007.

CATEGORY: Spirits

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CATEGORY: Spirits

ABSOLUT is very much an interna-tional success story. This commercialsuccess is all the more remarkablewhen one considers that ABSOLUTemerged onto the internationalscene in early 80’s from under theSwedish monopoly system with littleor no international trading experi-ence. According to Peter Gallogly,Commercial Director for Irish Dis-tillers Pernod Ricard, “We are in auniquely strong position in the Irishmarket, with 5 of the top 10 spiritsbrands. ABSOLUT is a fantastic ad-dition to our portfolio and truly po-sitions us as a leading player in thedynamic vodka category.”

Much of the success of Irish Distillersis down to the continued swiftgrowth of the Jameson brand; itslargest market, the US is growingrapidly, along with South Africa, Rus-sia and Brazil. Founded in 1791 byJames Power, the brand’s fortunesrose dramatically under John Power.Powers was the very first distillery tobottle its own whiskey in 1886,adopting a gold label (similar to thefamiliar one today) exclusively forPowers bottled at John’s lane. Henceit became, and still is, the custom inpubs around the country to call for a‘Gold Label’.

Powers Gold Label is a rich, round,complex and full-flavoured drinkingexperience, rates “One of the best inall Ireland. Classic stuff,” in Jim Mur-ray’s Whisky Bible 2008. Powers 12Year Old Special Reserve retains theclassic Powers’s spicy,honeyed, full-bodied flavour, enhanced and en-riched by years of extra ageing incarefully selected American oak bar-rels and is best enjoyed neat, or witha little water.

Powers also pioneered the use ofminiature bottles – the famous‘Baby Powers’, among other first.Powers is tripled distilled for purityand matured in oak barrels for up toseven years.

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Irish excise duties on both still andsparkling wine are the highest in theEU. On a standard bottle of tablewine excise duty in Ireland in €2.05,compared with v1.87 in the UK,€0.62 in Denmark and €0.3 inFrance. On a standard bottle ofsparkling wine the Irish excise dutyprice is €4.10, compared with€2.39 in the UK, €0.93 in Denmarkand €0.6 in France. Wine expertspoint out that as a consequence ofsuch high excise duty the best valueis obtained by trading up.

Pubs lost share of wine sales last yearfalling from 10% to 9% by value.

Tellingly, off-licences took up the slackgrowing from 71% to 72% In the off-trade, multiples and symbols share ofwine sales is up 1% to 45% and 17%respectively. This is at the expense ofthe independent sector which has lostshare from 34% to 32%, discounterstook 6% of the off-trade.

Screw cap versus corks has become ahot topic in the wine world. Ageing isthe main bone of contention. The corkhas a propensity to allow wine tobreathe which is significant for theprocess of ageing a wine. No oneknows how the screw cap reacts tolong periods of ageing. The cork of-

fers tradition and a proven trackrecord.

One advantage of a screw cap ac-cording to wine experts is that thewine will not be affected by cork taint.The majority of wine bought in Irelandis drunk straight within a few hours ofits purchase so the ageing of wine isnot much of an issue in this case. Itseems that the Stelvin Closure is thebest alternative to cork currentlyavailable. However, there are numer-ous after products underway in an at-tempt to find a better solution thatmay be successful.

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pWine sales experienced growth up 6% to 8.6m cases. The annual per capita wine consumption inIreland is 18.1-litres. The market is divided into red (51%), white (44%) and Rose (5%). Table wineaccounts for 93.7% of wine sold; sparkling 2.9%, low strength 2.5% and high strength 0.9%. Redwine has the edge over white at 51% and females dominate wine consumption in this country

accounting for 57%. In terms of alcohol retail sales values, wine consumption grew to 17.9%. Theon-trade lost sales of wine last year falling from 10% to 9% by value. Off-licenses took up the slackgrowing from 71% to 72%. In the off-trade, multiples and symbols share of wine sales was up 1% to45% and 17% respectively, at the expense of the independent sector which lost share from 34% to32%, discounters took 6% of the off-trade. The vale sales of wine within the off-trade in Ireland are€773m, up 13% on previous figures. Wine remains a popular choice within this channel. The most

popular drink consumed in the home is table wine with a percentage of 43% and 44%in ROI and NI respectively.

CATEGORY: Wine

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Increased education and exposure towine is helping to create a more so-phisticated Irish wine drinker.Brands play a key role in the marketand ultimately aid consumers buyingdecisions but at the more premiumend consumers struggle to recognisethat added value. Sustaining prof-itability and long term growth in thismarket value relies on wine beingmulti-dimensional, not just reliant onmulti-buy promotions.

Although the popularity of wine hasgrown significantly in Ireland since2000, regular consumption is lowwhen compared to the UK and other

countries. However, the Irish winemarket has yet to reach its peak andthere are a number of current mar-ket conditions which the industrycan exploit.

The on-trade faces an uphill battle;Irish consumers need more incen-tives to venture out into pubs andclubs. Clearly lifestyle has a lot to dowith it but when reality and priceshit home many consumers are opt-ing to stay at home with friends, din-ner and a couple of bottles of wine.

The value sales of wine within the

off-trade in Ireland are €773m, up13% on previous figures. Wine re-mains a popular choice within thischannel. The most popular drinkconsumed in the home is table winewith a percentage of 43% and 44%in ROI and NI respectively.

Bottled table wine remains in the on-trade industry. The fact that morepubs, hotels as well as traditionalrestaurants have combined thatfood/alcohol element to their busi-ness, wine should sustain its popu-larity as a complement to food.

Wine appears to be the predominant

drink when it comes to female pref-erences. In Ireland the market islargely consumed by women. Up to57% of women compared with 43%of men drink wine.

The dynamics of how we drink hasmetamorphosed alongside culturalchanges in Ireland. There are moremiddle-aged women drinking inmore subtle ways, using the off-tradeas their main purchase channel.Wine is the drink of choice forwomen.

It has been well documented in re-

cent times that women are drinkingever more increasingly. Several re-ports have reminded us that the de-mographic of who is drinking andwhy has changed dramatically overthe last five years.

Reports suggest that women in theirthirties and forties are becoming themost irresponsible drinkers which isan reversed change from a decadeago where men were the most likelyto drink recklessly. Women drink ina different way to men. Whereasmen are beginning to put the glassdown in their thirties and forties,women are indulging in huge

F o o d F i n d e r 2 0 0 9 1 3 7

There are moremiddle-aged

women drinking in moresubtle ways, using the

off-tradeas their main

purchase channel.

CATEGORY: Wine

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glasses of wine at this age, thereforemiscalculating their units and conse-quently putting their health at risk,according to research.The simple fact is that women areless able to metabolise alcohol in theway that men do but are continuingto drink similar amounts to men andsuffering in their health as a result,say experts.

A new type of female drinker hasemerged in Ireland, as a conse-quence of the headier days of eco-nomic prosperity. These women arenot the teenage binge drinkers we soeasily categorize when we think of fe-male drinking; they are a couple ofgenerations older, with more moneyand drinking in different ways.

The pub and club is not for this typeof drinker. Many are drinking wine athome, over dinner with friends, pre-suming it harmless and filling over-sized wine glasses withoutconscience. Research shows thatmen reach a peak for alcohol at 29,but women are tending to drinkmore as they approach middle age.Research carried out at Cardiff Uni-versity states;

“We found that older women weremore intoxicated and the furtherthey got into their thirties and for-

ties, the higher the alcohol contentin their blood. Men in their twentiesoften drank heavily, but after 29they tend to quieten down and con-sume less.”

Half of the women breathalysed inthe study had exceeded the dailyrecommended six units of alcohol -equivalent of two large glasses ofwine. In comparison, a third of themen had exceeded their recom-mended daily limit of eight units.

The study found that the size of wineglasses not only served in restau-rants and pubs as well as those inthe home are making it difficult forwomen to keep track of their drink-ing;

“The big glasses in pubs now are athird of a bottle, so it doesn’t takethat long to wade through large vol-umes without having nay idea ofwhat they have put away.”

One participant in the study sums itup perfectly, saying;

“You can go around to a friend’shouse and its easy for the four of youto polish off eight or nine bottles ofwine even though you are not tryingto get drunk.”

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A new type of female drinker has emerged in Ireland, as aconsequence of the headier days of economic prosperity.

These women are not the teenage binge drinkers we so easilycategorise when we think of female drink, they are a couple

of generations older....

CATEGORY: Wine

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CATEGORY: Wine

The Players:

BWG Wines & Spirits, which is al-cohol division of BWG Foods, repre-sents a range of exclusive productsavailable to its group retailers,SPAR, EUROSPAR & MACE; SantaHelena, Misiones de Rengo, HardysBin, Thorin, Flying Kiwi, McPherson,Cristalino Cava and Maloney’s winebased cream liqueur.

Andrew McPherson has been in-volved in the wine industry for over40 years and after the McPhersonname was established in the 1960’sby his father Jock, Andrew has beenat the forefront of winemaking tech-nology. In 1993, Andrew establisheda new state-of-the-art winery and

bottling facility in the cool climatearea of Victoria’s Goulburn Valley,110 kms north of Melbourne.

McPherson Wines remain stead-fastly committed to producing highquality wines at an affordable price.McPherson wines are typicallyyoung, fruit-forward, bursting withflavour and oak is used lightly, so asnot to overpower the fruit flavours.Of the many accolades that havepoured-in for the wines, the McPher-son Cabernet Sauvignon 2007, hasjust been voted as one of the ‘TopTen Value Reds’ in James Halliday’s2009 Wine Companion.

Santa Helena has been at the fore-front of Chilean winemaking for over60 years; in fact their slogan of‘Wine tradition since 1942’ personi-fies their aim of making wines whichtruly encompass the modern Chileanstyle.

Earlier this year Matías Rivera wasappointed as new Chief Winemakerand Managing Director of Santa He-lena and is regarded as one of thebest members of the new generationof Chilean winemakers. He hasbeen in the wine industry for morethan 12 years. In 2007, Matías wasawarded the title of Winemaker ofthe Year, by the Chilean Circle ofGourmet Journalists for his out-standing work which is always re-flected in the quality and consistencyof his wines. Santa Helena producesa range of wines from entry level tosuper-premium.Misines De RengoIn the last couple of years Misionesde Rengo wines have quickly estab-lished themselves in the market fortheir quality unique labelling. Thewinery was founded in 2000 with aconcept based on offering fine winewith the best value price in the mar-ket. Within just eight years Misioneshas become one of the leading ex-porters of Chilean wines.Of the two tiers of wines available,

the varietal range is the perfect qual-ity for drinking at any occasion; fullof luscious and intensely pure con-centrated fruit flavours with a hint ofoak.

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The Finca la Celia winery, responsi-ble for the production of Altivo vari-etal wines, has a long heritage ofwine production in Argentina andwas founded in 1890, when EugenioBustos acquired land in the Uco Val-ley to build a winery. His daughter,Celia Bustos, later inherited the busi-ness. Her leadership and hard workturned the vineyards into a prof-itable business. In 2000 the winerywas enlarged, restored andequipped with new technology fromFrance and Italy.

The Uco Valley, 100 km south of theCity of Mendoza, is a land of quality

vineyards. It lies at the foot of theAndes Mountains and is a clear ex-ample of grape-growing at high alti-tudes; the vineyards are situatedmore than 1000 meters above sealevel. The climate and soils are idealfor producing quality grapes withmeltwater from the Tunuyán Riverproviding water for the whole vine-yard area, which is 100% pure fromits source in the Andes Mountains.

The wines from the area are charac-terised by fine fruit flavours, sensualbouquets and in the case of the reds,accessible tannins.

Put together a family with 30 yearsof heritage in New Zealand wine-making, an award winning wine-maker and a wine called Flying Kiwiyou have all the ingredients requiredfor a successful recipe!

The Flying Kiwi wines are the con-cept of the Mundy family, Robin andBernice who are passionate in theirdedication to producing exceptionalquality fruit and wines from the es-tate.

The result is a stunning selection ofwines produced at the winery's 20hectare estate. The Mundy’s are ac-knowledged as pioneers in estab-lishing premium Pinot Noir for NewZealand and with this in mind re-cently launched the Flying Kiwi PinotNoir as an extension to the range.

This classic Sauvignon Blanc is full ofripe tropical passion fruit and goose-berry aromas which balance withcrisp acidity and herbal notes to addcomplexity and depth with a longsmooth finish. A wine to be enjoyedduring the next 12-18 months andmay develop further complexity withextended cellaring.

This well balanced wine has aromasof peach and tropical fruits, with arounded well balanced elegant

palate. The wine will continue toevolve over time to reveal a creamytexture. Perfect to drink now or cel-lar up to 3 years

The Flying Kiwi Pinot Noir has acomplex nose of cherries and redberry fruits with earthy notes on thepalate. Soft tannins and light oakbalance with rich fruit. Superb withgame and tomato based dishes.

CATEGORY: Wine

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Roland Bauchet is a traditional fam-ily-owned Champagne house basedin the heart of the Champagne vine-yards. With over 90 acres of vines insome of the best areas in Cham-pagne, Bauchet has total controlover production from grape to bot-tle. Bauchet’s philosophy is simple,they strive to produce consistentquality Champagnes with theirunique house style.

This fresh and delicate Champagneis perfectly balanced with floral aro-mas on the nose and a dash of icingsugar on the finish. It is full of ele-gance and finesse and ideal for first-time Champagne drinkers.

The Bauchet Cuvée Brut Rosé is onlymade in exceptionally good yearsand consequently we have a limitedallocation. The Bauchet Rosé is adelicate pale strawberry pink incolour with strawberry flavours fol-lowing through on the palate. It isstunning Champagne for any occa-sion.

Maloney’s is a unique wine based

cream liqueur allowing it to be soldin outlet which has a wine licenceonly. As Maloney’s is made fromfresh dairy cream blended with thefinest of quality flavours, wine andIrish whiskey, there is no compro-mise on flavour compared to similarwhiskey based cream liqueurs.

In addition to the original Maloney’s,the range includes two new flavoursCaramel and Mint.

Irish Distillers has a variety of wellknown wines in its portfolio includingErnest & Julio Gallo, Jacob’s Creekand Long Mountain..

Diageo Ireland offers a number ofwell known names including BlossomHill, Blue Nun, Lion Range, Eden Val-ley , Piat D’Or.Black Tower, FlatRock, Clos Du Bois and Concorde.

FindlaterGrantsAlexander Findlater, the great-grandfather of the present Alex Find-later, established Findlaters in1823. In 1852 the Findlater Moun-tjoy Brewery in Dublin was estab-lished and Findlaters involvementwith wine goes back as far as the1800's.

Findlater's were keen to developtheir brand name, and amongst Cad-bury's chocolate, Jacob's biscuits,Nestle condensed milk and Heinzcanned goods, Findlaters developedtheir own extensive range of Find-later-brand tea, jams, jellies, furni-ture polish, coffee and sugar. Indeedalmost all wines and spirits werebought in cask and sold under theFindlater label and guarantee. Onecould buy Findlater bottled ChateauMouton Rothschild, Lafite, LeovilleBartons and many more.

Over the last 200 years Findlatershas become a veritable Dublin insti-tution, with shops across Dublin,many of the original Findlater storesare still standing in Blackrock,Dalkey Rathmines, and the Gables inFoxrock.

Findlaters have a long history withCantrell and Cochrane (C&C) goingback as far as 1905 and in 2002;Alex Findlater sold his company tothe Group.

In July 2005, Grants of Ireland and

Findlater Wine Merchants were for-mally merged; marrying two of Ire-lands best known and well respectedwine and spirits distributors.Bringing these two companies to-gether has resulted in a large port-folio which is unrivalled by any otherIrish distributor both in strength anddepth. The FindlaterGrants portfoliooffers Irish customers a wide array ofchoice in wines and spirits fromaround the world. This includes winebrands of world-renown such asCono Sur, Antinori, Marques deRiscal, Saint Clair and Wakefieldwines. Spirit brands include Tullam-ore Dew, Carolans Irish Cream, IrishMist and Glenfiddich to name but afew.

2008 sees some new additions tothe portfolio. Our Australian collec-tion has been extended to includethe Jaraman and 80 Acres ranges ofwines targeted to the On Trade chan-nel. We also saw the launch of an ex-citing new Cava range from RogerGoulart of Spain and the company’sfirst Fair Trade wine, Thandi.

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CATEGORY: Wine

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CATEGORY: Wine

To support our vast portfolio, we atFindlaterGrants have a unique com-pany structure specifically designedto meet the demands of the ever-changing Irish Wine market, offeringcustomers the highest levels of serv-

ice, expertise and channel speciali-sation.

In 2009 FindlaterGrants mergedwith Robt. Roberts WoodfordBourne.

The Bend In The River range is fa-mous for its classic design and con-temporary appearance, which makesit a popular choice for Irish con-sumers and an essential for any cel-ebration. The range consists of aRiesling, Pinot Grigio, Pink, Merlot,and a new Pinot Noir SparklingRosé.

The Sparkling Rosé, launched insummer 2008, is made from PinotNoir grapes grown along the RiverRhine, an area well known for theripeness of its fruit. Its aromas ofsoft red fruits intermingled with bis-cuity notes give it extra complexity.Since its launch The Bend in theRiver Sparkling Rosé has won a sil-ver medal at the prestigious MundusVini International Wine Awards heldin Germany, a testimony to the out-standing quality of the wine.

Mateus Rosé - the iconic rosé brandand number one Portuguese wine isa firm favourite with Irish consumers.Its unique packaging and fresh, fruitytaste is a hit every time. 2008 sawthe introduction of Mateus Rosesparkling. This is a new non-vintagebrut sparkling wine from Mateus,the rosé specialists, with a youthful,fresh and contemporary style. Keep-ing with the brand's reputation andexpertise, Mateus Rosé Sparklingmarks another step in the brand'sdevelopment of a broad range ofrosé styles for the more outgoingand adventurous wine consumer.

Cono Sur is Ireland's fastest growingmajor wine brand* and the first win-ery in the world to achieve CarbonNeutral Delivery Status. 2008 sawCono Sur become the second largestexporter of Chilean bottled wine invalue to Ireland growing +36% yoy.In 2008 Cono Sur was the firstChilean winery to launch a Sparklingwine, which is growing very well inthe Irish market. The wine is an ac-complished expression of Cono Sur'sinnovative style and also reflectsCono Sur's fresh and modern ap-proach to wine making. The ConoSur - 'No family trees, no dusty bot-

tles, just quality wines' ethos drivesthe brand in Ireland, which is sup-ported with television advertising,strong point of sale materials and anarray of gift packs.

One of the leading family wineries inAustralia is making huge inroads tothe Irish market with WakefieldWines from the Clare Valley, SouthAustralia. The Promised Land, Wake-field Estate, Jaraman and St An-drew’s ranges are all now availableto Irish consumers - an option forevery wine lover and every winelover's pocket.

Each brand has won a host of acco-lades, including the recent nomina-tion as one of just three finalists forthe International Red Wine Maker ofthe year at the 2008 InternationalWine Show. 2008 saw Wakefieldgracing our television screens for thefirst time to tell the consumer of thestory behind the Wakefield brand-the 3 seahorses. These fossilisedseahorse remains are a symbol thatthe area boasts fertile terra rossasoils suitable for growing excellentvines.

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Sutter Home family wines are a firmfavourite with Irish consumers. Thebrand was developed to enjoy every-day occasions as well as monumen-tal milestones. In fact, through theyears of consistent quality, innova-

tion, exceptional value and criticalacclaim, Sutter Home has earnedthe confidence and loyalty of Irishconsumers. With a wide array ofwines ranging from their pioneeringZinfandel, bright Chardonnay, as wellas smooth Cabernet Sauvignon, Sut-ter Home is an ideal wine for any oc-casion. Also available is the SutterHome Free range, a great tasting se-lection of non-alcoholic wines. 2008saw Sutter Home voted the US wineproducer of the year at the in Inter-national Wine and Spirit Challenge.In 2009 the packaging will move toscrew cap, the preferred choice ofconsumers. Watch out for the strongpromotional packaging in 2009.

Arniston Bay is a great tasting rangeof wines from the small fishing vil-lage of Arniston, situated at themost southerly point of the Africancontinent. Accessible and unconven-tional, Arniston Bay wines have be-come a favourite amongcontemporary wine lovers all overthe world. The range, available in avariety of packaging alternatives,has a multitude of offerings rangingfrom easy-drinking entry-level winesto more sophisticated wines for dis-cerning palates.

2009 will see the introduction ofnew packaging for the varietal range.The current label design will evolveto reflect a more premium positionas well as the range turning to screwcap – a preference of the Irish con-sumer.

The Arniston Bay winery takes greatpride in including Thandi FairtradeWines in its portfolio. Thandi was es-tablished in Elgin in 1995 with aview to producing quality wineswhilst promoting ethical trading andempowerment. Thandi became the

first wine brand in the world to re-ceive Fairtrade accreditation in2003. Its work as a winery has beenrecognised by a silver medal at theInternational Wine and Spirits Com-petition in 2001 and 2004, and goldmedals for the Sauvignon Blanc /Semillon 2004 and 2005 at the Ver-itas awards

CATEGORY: Wine

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FebvreTwo Oceans is one of South Africa’smost widely distributed wine brands.Two Oceans Shiraz is a soft, gener-ously juicy and surprisingly polished-textured wine. The Two Oceansvarietals are characterised by theirconcentrated fruit aromas on thenose and lively, mouth-fillingflavours. It is distributed in Irelandby Febvre & Co.

From the heart of the Colchagua Val-ley comes the Caliterra Reservarange of wines distributed by Febvre& Co. “Calidaad” and “tierra” – qual-ity and land – form a beautiful mar-riage in Caliteerra wines. Gentlycrafted by winemaker, SergioCuadra, in a unique gravity flow win-ery these wines reflect the excellentsoils and climates of Chile’s finestvineyards. Caliterra is deeply com-mitted to sustainable practices in thevineyard. Caliterra Reservas areavailable in the full range of varietalsin 75cl and the Chardonnay sauvi-gnon Blanc and Cabernet Sauvignonare currently available in 187ml.

AmpersandAmpersand are an independent fam-ily owned company. In 1881 JJ Fox& Co, specialist retailer of handmadecigars opens its doors on GraftonStreet. In 1947 a distribution com-pany was established by the Fox andGrey families. In 1994 a wine busi-ness unit was established. Formally,Tobacco Distributors Ltd. The com-pany has over 3,000 direct cus-tomers

Since their name change in 2006Ampersand has continued to de-velop their prestigious and highly re-spected wine portfolio with someaward winning additions to therange. The latest addition BabichWines, one of New Zealand’s leadingwineries has been a great success forthe company. The Pinot Noir fromthe range won the title of Best NewWorld Red Wine under €14 at therecent NOffLA awards and the part-nership for the two family-ownedcompanies has developed fromstrength to strength since its com-mencement.

Ampersand’s flagship brand SantaCarolina from Chile also remains afirm favourite with Irish consumers.A stylish new packaging waslaunched in 2008 with a new imagethat embodied Santa Carolina’s clas-sic and sophisticated brand style.

Ampersand are also the distributorsfor the Pasqua range of Italian winesfrom Verona. In addition to produc-ing a range of traditional Italian va-rietals, Pasqua also produce adelicious range of frizzante winesthat are very popular on the Irishmarket.

Gran Feudo is Ampersand’s Spanishoffering and the prestigious brand ofBodegas Julian Chivite from theNavarra region in Northern Spain.2008 was a great year of celebrationfor Chivite when it was officiallyawarded the Pago status, making itone of only five estates in the Spainto receive Spain's highest classifica-tion.

Edward Dillon & Co.Nederburg wines are distributed inIreland by Edward Dillon & Co.For over 200 years, Nederburg hasstood proud at the forefront of SouthAfrican winemaking. Situated in theheart of the beautiful and fertilePaarl winelands, the Nederburghomestead is a classic example of ahistory and heritage as deep as theroots of our vines.

CATEGORY: Wine

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Nederburg offers a broad range ofproducts to the consumer and is di-vided into three tiers: an imagerange which consists of Auctionwines, a Reserve range of excep-tional wines made of specially se-lected grapes, and the Standardrange consisting of 17 wines. TheSparkling wines and newly-releasedNederburg brandy add the finishingtouches.

Nederburg is recognised as an inno-vative leader in South Africas qualitywine market. Many prestigiousawards and growing exports world-wide have further enhanced its in-ternational reputation andpopularity.

Wine brand Carmen, which is dis-tributed in Ireland by Edward Dillon& Co, is the second-best-sellingChilean wine on the Irish market. Ire-land is the brand’s most successfulmarket in the world. Both Carmenand Edward Dillon worked closely toensure it appealed to European aswell as South American markets.

Carmen has a total of four ranges,with prices ranging from the Classicand the higher end Gold Reserve.

Throughout 2008 Moet & Chan-don’s key activity included ‘TheGloss’ Moet & Chandon Look theBusiness Award’ as well as the IrishTatler designer of the Year Award.Throughout 2009 there will be keyevents involving these brands, in-cluding the 2009 Veuve ClicquotBusiness Woman Award, the open-ing of the Dom Perignon VIP area inLillie’s Bordello, a new local adver-tising campaign for Moet & Chan-don, the launch of Moet Chandongrand Vintage 2002 and the launchof a new vintage from the house ofKrug.

CATEGORY: Wine

Increased education andexposure to wine is

helping to create a moresophisticated Irish wine

drinker.

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The Irish soft drinks market has an an-nual turnover of over €16bn and contin-ues to grow, according to the industry,which employs an estimated 6,000 peo-ple and contributed€200m VAT revenue.The market experienced a 5.6% yoy(year on year) increase to strand at886m litres.

Carbonated soft drinks, fruit juices and bot-tled water representing a combined shareof 80% are the three main categories forthe soft drinks industry, sometimes referredto as the functional and refreshment bever-ages industry. The remaining 20% com-prises dilutables, and still/fruit juices.

Bottled water continues to make significantgains increasing by 10% with a retail valueof €205m and now accounting for 22% ofthe overall market. Carbonated soft drinksdominate the sector with a 50% sharewhich experiencing yoy growth of 2.7% re-versing the previous three year trend.

The carbonated soft drinks category con-tinues to dominate and is worth €593mand has seen a shift to the low calorie andno-added sugar options which now makeup 57% of the total soft drinks category.

The third most popular category is dilatablewith a 13% volume share of the market anda value of €41m. Volumes for fruit juices,still juices and juice drinks grew by 6.6% inline with consumer demand for health andwellbeing products that also offer conven-ience.

Sports and energy drinks enjoyed a 6% in-crease with volumes reaching 52 millionlitres and making up 5.9% of all softdrinks.

Innovation, a more informed consumer andwider consumer choices are the key driversof the soft drinks market. Consumers aremaking more informed and healthy lifestyledecisions reflected in the growth trendsacross individual cartograms. There is par-allel growth across all categories includingnewer areas like bottled water, fruit juices,still and juice drinks which are growing intandem with more established categories.

New innovative products have contributedto the growth in the no/low calorie productchoices as key drivers for the total softdrinks category and in the last few yearshave come to dominate the overall cate-gory. Convenience is also a significant factorfor today’s consumer and has helpedstrengthen the growth of this sector.

CATEGORY: Soft Drinks

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CATEGORY: Soft Drinks

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The carbonates industry is one ofthe most heavily advertised of theentire drinks market and, as such isfull of easily recognised brands suchas Coca-Cola, Pepsi, 7-UP and RedBull. The industry is mature andmarket conditions are not easy withconsumers continuing to turn tohealthy options to quench theirthirst, with smoothies, juices andbottled water growing in popularity.

Increases in PDI and the current lev-els of a younger population providegrowth in terms of sales volume butas the population ages so the targetmarkets are likely to shift, with newadvertising, packaging and evenflavouring playing an increasinglysignificant role.

Soft drinks continue to experience aswing from carbonates to still drinkswith a focus on perceived healthieroptions like the fruit/vegetabledrinks. Government health pro-grammes and the constant emphasison health and wellbeing have con-vinced consumers to increase theirdaily increase of fruit and vegeta-bles, something which manufactur-ers are able to capitalise offering thefive-a-day quota in convenient for-mats. In addition, growing consumerawareness of so called ‘super fruits’such as pomegranates and gojiberries, which are naturally high invitamins, minerals and anti-oxidants,have benefited the smoothies sector.

The carbonated soft drinks market isthe largest soft drinks sector withover 50% of the total market. Thesector saw a 2.8% increase in vol-umes to 446 million litres. This wasthe second consecutive year ofgrowth after a number of decliningyears. Carbonated soft drinks have aretail value of €593m.

Cola dominates in individual flavourof choice. The Irish market has a his-torically high non-cola flavour share.Popular flavours of orange andlemon/lime have a tradition and her-itage that continues to prevail in con-sumer purchasing behaviour.

The full-sugar sector has shownsome decline but it is expected tostabilise. The newly healthy con-scious consumer has urged retailersto allow more shelf space to bottledjuices. Consequently, manufacturers

have developed new innovations incarbonated drinks. In an attempt toget in on the health and wellbeingaction the more traditional carbon-ated players like Coca-Cola and 7-Uphave been busily coming up withhealthier options of their own.

Leading player CCBI (Coca-Cola Bot-tlers Ireland) has made a push intothe health and wellbeing market byadding vitamins to some mini DietCoke bottles which represents agood example of the industry’s abil-ity to innovate. Moreover, the com-pany rolled out Coca-Cola Zero inearly 2007, the biggest launch insoft drinks as a whole. Referred to as‘bloke coke’, the sugar-free cola cokebrand is primarily targeted at healthconscious male consumers who areoften put off by the whole feminineimage of diet positioned cola car-bonate products like Diet Coke.

These variants will help attract morehealth conscious consumer, prima-rily men. In addition, manufacturersare also increasingly placing em-phasis on their product’s uses of nat-ural ingredients.

Coca-Cola Ireland’s ‘diet Coke’ latestcampaign features singing superstarand Grammy award winner, Duffy.The multi-million campaign designedby Mother London, is set to launchin many countries across Europe.The new campaign for ‘diet Coke’ willshow the three times Grammy nom-inated singer acting in a series of 30-second spots for her first ever highprofile appearance in a TV adver-tisement.

Coca-Cola sees Duffy as hugely tal-ented and accessible rather thanbeing merely a pin up, making theads attractive to younger femaleviewers aged 20-35.

7-Up, Ireland’s favourite lemon andlime drink launched ‘Nature is closerthan you think’ bringing the true na-ture of 7-Up into homes of Ireland.Appreciation for its ‘100% naturalflavours’ can be seen right across thestable and 7-Up is now bought bymore households than any other softdrink in the country. Sugar-free prod-ucts like Britvic’s 7-Up Free continueto sell particularly well.

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CATEGORY: Carbonates

Duffy

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CATEGORY: Carbonates

Brand shares in on shots

Coca Cola 38%Club 8%7 Up 10%Pepsi 2%Fanta 3%Others 9%

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Total Market

Value: €479,163,000Volume: 310,726,000 litres

Total Carbonates sector splitsin value

Multiples 35%Groups 36%Independent retailers etc 5%TSNs, Garage forecurts 24%

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As a mature market, carbonates stillmaintain slower rates of growth. De-spite this, the Irish consumer hasmore than a likeness for bothbranded and own label carbonatesand is unlikely dampen this enthusi-asm any time soon. The fact remainsthat carbonates are still thefavourite soft drink option amongIrish consumers. The continued pop-ularity of carbonates is easily attrib-uted to their enduring appeal to awide consumer base for a variety offun and refreshment occasions bothday and night.

Ireland’s sports ands energy drinksmarket grew 15% more than doublethe 7% growth rate across Ireland’ssoft drink market. Sports and energydrinks make up a fifth of this market,after their bumper growth.water, smoothies and fruit/vegetable

The concepts of fun and refreshmentcoupled with ‘better for you’ and ‘en-ergy for you’ offerings are at theheart of the success of this sector.

Energy drinks which alleviate thestresses and strains of daily life arestill the most obvious to deliver forcarbonates in future.

Red Bull Energy Drink is a functionalbeverage with a unique combinationof ingredients. It’s made for mo-ments of increased physical andmental stress and to improve en-durance, alertness, concentrationand reaction speed. It revitalisesbody and mind.

After creating and successfully lead-ing the energy drink category for

over 20 years, Red Bull is now en-tering the largest non-alcoholic bev-erage category in the world with acola made of ingredients from 100%natural sources. In addition, it’s theonly cola which contains both theoriginal kola nut and the Cola leaf.Red Bull Cola was initially launchedin Austria, Switzerland, Italy, the UK.Ireland, Russia and Las Vegas.

Boost Drinks has proved a huge suc-cess since its launch in Ireland. Re-cently Boost was re-branded usingthe high impact colours blue andblack. The new bottle will augmentsales and continue to offer impres-sive profit margin. Boost is availablein 500ml and 1-litre resalable silverPET bottles. With added energy re-leasing B vitamins, caffeine andamino acids, such as taurine, Boostworks alongside the existing naturalmetabolizers found in the humanbody to provide an extra boost forenergy.

Other added functional and indul-gent products have also gained afooting with a niche consumer fol-lowing. The industry likes to promotesoft drinks which if consumed inmoderation have a role in a bal-anced lifestyle providing importanthydration.

Diet carbonated drinks continued tosee an overall increase in popularityto reach 27% of the carbonated softdrinks category. New product devel-opment and brand extensions havefocused on zero sugar in particular.In conjunction with this, consumershave connected with heightened useof natural ingredients.

CATEGORY: Carbonates

Market Number Ones

Large bottles 7 Up500ml Contours Coca ColaCans Coca ColaEnergy drinks LucozadeRTDs Capri SunStill water BallygowanFlavoured water Kerry SpringCordials Mi WadiSports drinks Lucozade SportCola soft drinks Coca ColaOrange soft drinks Club OrangeLemon & Lime soft drinks 7 UpStimulation Drinks Red Bull

Market segments in flavours

Cola 41%Lemon & Lime 23%

(7 UP 85% of this)Orange 15%Others 22%

Large bottles market

7Up 36%Coke 28%Club 12%Diet Coke 10%Lucozade 2%Others 12%

Pack Splits in Value

One shot bottles 44%Cans 8%2 Litres 41%Other large size bottles 7%

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Dilutables are defined as squashes,cordials, powders and concentratesfor dilution to taste by consumer. Di-lute to taste drinks have remainedreasonably steady in the last coupleof years, with volume consumptionof 118 million litres in ready to drinkterms. This translates into consump-tion per person of 27.4 litres and aretail sales value of €41m.

Purchased in concentrate format –cordials, squashes, syrups and otherdilute to taste drinks are usuallymixed one part concentrate to fourparts water. Dilutables are the thirdmost popularly consumed soft drinkin Ireland, with a 13% volume share,witnessing continuous yet steadygrowth over 2001 to 2007 period.

Dilutables have benefited from con-sumers increased knowledge on theneed to hydrate. Thus these bever-ages provide a flavoursome and re-freshing option to plain water. Onthe flipside, dilutables have lostshare in recent years to the range ofready to drink beverages on offer.This is due to a consumer desire forconvenience and on the go con-sumption. At the same time, diluta-bles have been held back in thosehomes where tap water is most dis-trusted.

Dilutables are perceived as offeringan affordable and dependable op-tion for kids and adults alike. Frombulk packaged low price options topremium glass-packaged cordialswith indulgent flavours such as el-derflower, with products catering forall tastes and budgets. In line withthe trend for health products, an es-timated two-thirds of all dilutablessold are high juice or low/no-addedsugar varieties.

New flavour combinations, premiumproducts and re-branding are vitalfor the dilute to taste category. Withconsumers wanting to experiment,innovation should take on a newprecedence. A range of flavour offer-ings provide variety for more ad-venturous consumers, and with theirability to suit a variety of situationsfrom a picnic in the park to a sport-ing event, dilutables offer a reliableand value driven choice.

Brand shares in dilutables

Robinsons 28%Mi Wadi 30%Ribena 14%Kia ora 4%Private label 13%Others 11%

CATEGORY: Dilutables

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For the last number of years, fruit juice has been performing extremely well withsales of 100%, growth of 6.6% to reach 66 million litres and a retail value of

€142m. Fruit juice is no longer the sole province of breakfast time. Throughout theday, consumers have embraced the 5-a-day concept and the natural, healthy,

virtues of 100% juice.

CATEGORY: Fruit Juice

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Availability has extended beyondtake home usage, with fruit juicehaving a lesser but increasingly im-portant role in snack bars, highstreet stores, pubs and restaurants.There is a number of challengingglobal conditions facing this sector,such as rising energy costs whichhave hindered chilled juice growth.However, chilled juice grew to onethird of all juice consumed.

Continuing promotions on chilledjuice products saw the gap betweenchilled and ambient prices narrowfurther in 2008 and strong promo-tional activity saw brands taking onprivate label offerings.

Not from concentrate (NFC) repre-sents 18%, emphasising that natu-ralness and purity have becomeincreasingly important to the aver-age consumer. Orange juice contin-ues to be Ireland’s principal flavourand leads the market with 62%.Apple flavour accounts for 15%,berried fruits come in third place,with cranberry being the most pop-ular of the latter.

Mango has also witnessed goodgrowth although derived from afairly low base. So-called ‘superfruits’with their added health benefitshave begun to encourage the morediscerning consumer palette. Pome-granate, agi and goji amongst othersare considered and bought more fre-quently on retailer’s shelves and su-permarkets have begun to offersuperfruit own brand formulations.

One of the most indicative trends ofhow seriously consumers now taketheir health is the rise of smoothies.This trend continues with greatgusto and has become a sector allon its own. However, volumes remainlow in relation to the rest of the mar-ket, though its percentage growth issignificant.

Packaging wise, cartons dominatemost Irish fridges and children’slunchboxes, while PET connects withconsumers for both take-home andon the go. Juice is becoming popu-lar in the on-trade with productavailable in glass bottles.

Fruit Juice’s impetus has been drivenby the fundamentals of naturalness,pure health and five-a-day. The con-tinued focus on the importance ofhealth and wellbeing, manufacturers,retailers and marketers alike will un-

doubtedly respond with ever ap-pealing products, further swayingpurchasing behaviour and drivingjuice sales onwards.

Ethical beverage brands, supportingworthy causes, are emerging. Mean-while the industry is reducing emis-sions, product weight andencouraging recycling to take posi-tive action on environmental impact.These have a strong resonance withconsumers and help us to ‘do our bit’along the way.

One of the mostindicative trends of howseriously consumersnow take their health

is the rise ofsmoothies.

CATEGORY: Fruit Juice

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This sector is categorised by nectars(25-99% fruit content); juice drinks(5-25% fruit content); other stilldrinks (0-5%) including iced tea,sports drinks, still flavoured waterand non fruit drinks. It has proved areliable category for operators andconsumers alike.

Like many of its counterpart sectors,still drinks draws on the consumerdesire for health and wellbeing. Thisis combined with fun, flavour and‘glug-ability’. New product develop-ment has continued with all of this inmind. Nutritious, natural refresh-ment with added benefits has been acustomary theme.

Sustained growth has been wit-nessed by sports waters and theemergence of super fruit juice drinks,alongside still variants of carbonatesbrands and an array of emergingproducts influenced by health for thebody and mind.

Sports still drinks have raced aheadin the market with products beingpurchased for a wide range of rea-sons and consumption occasions.Sport being a mainstream in Irish so-ciety has meant that the role ofsports drinks for replenishment andtheir consumption by leading sportspersonalities has strongly supportedthis segment.

Providing healthy refreshmentwhether a lunchtime, sport, work orplay, still and juice drinks offer aflavoursome and health driven alter-native for active consumers. In theon-premise channel, still drinks stillhave a role to play either as an al-ternative or a supplement to coffeeand alcohol.

Health, wellness, variety and vitalityare at the heart of the still and juicedrinks offering, and this is a categoryamongst the most durable at fight-ing back the unpredictable and softdrink repellent Irish weather. It offerseverything from specific juice drinksfor children through to those foradults only. Such variety will onlyhelp the category’s margins widen.

CATEGORY: Still Juice

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The emerging still and juice drinks sector has had another positive year. Overall volume grew by 12.5%to reach 63 million litres and a retail sales value of €104m. Still and juice drinks have experienced steady

market share gains since 2000, reaching over 7% of total volumes, up from 5% in 2001.

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In the past, non-carbonated softdrinks have been typified by prod-ucts such as squashes and cordials,intended for consumption after dilu-tion. More recently, the consumptionof ready-to-drink non-carbonateshas been stimulated by the develop-ment of a wide range of heat-treated, aseptically packedfruit-based drinks.

The ingredients and technology in-volved in the manufacture of non-carbonated soft drinks is similar tothat of the carbonates, with the ob-vious exception of carbonates. Withthe exception of some cheaper cor-dials, non-carbonated soft drinks arebased on fruit juice. Drinks of thistype are immediate between softdrinks and fruit drinks. Single serve(250ml) tetra pack cartons suppliedwith a drinking straw are most com-monly used and particularly popularwith children.

Some fruit drinks are targeted di-rectly at children and package de-sign is often based on cartooncharacters. The association of fruitdrinks with childhood tastes tends todiminish sales to adults. Despite lotsof consumer points which juice andjuice drinks touch like health, natu-ralness and taste, and positive de-mographics, it remains a competitivemarket place.

The latter half of 2008 saw changesin consumption, which polarised themarket and enabled the category toregain some of the ground lost tosmoothies. Looking forward manu-facturers will need to extend appealbeyond the breakfast table andschool lunchbox to win volume be-cause juices already enjoy high lev-els of penetration and frequency as aresult of habitual drinking by con-sumers in the morning.

Brand shares its RTDs

Capri Sun 38%Ribena 22%Squeeze 7%Amigo 3%Robinsons 1%Others 29%

CATEGORY: RTD’s

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Ireland’s sports ands energy drinksmarket grew 15% more than doublethe 7% growth rate across Ireland’ssoft drink market. Sports and energydrinks enjoyed a 6% increase in vol-ume and accounts for 5.9% of theoverall soft drinks market.

The concepts of fun and refreshmentcoupled with ‘better for you’ and ‘en-ergy for you’ offerings are at theheart of the success of this sector.Energy drinks which alleviate thestresses and strains of daily life arestill the most obvious to deliver forcarbonates in future.

The sports drink segment is dividedbetween medium sugar isotonic andnew lower hypotonic drinks for themore calorie conscious gym-goer.Moreover, sugar hypertonic variantsare limited to extreme sporting en-deavour.

More and more consumers arechoosing to drink sports drinks as adaily on-the-go alternative to ordi-nary soft drinks as well as before,during and after exercise.

In an attempt to broaden their ap-peal, a number of new flavours andvariants were launched in 2007,with brands supporting Irish sport-ing endeavour through close associ-ation with the GAA and other sportslike Rugby Union.

Energy drinks are made up of caf-feine fuelled stimulant energy, pri-marily packaged in a 250ml can,and glucose based energy formats,usually packaged in PET bottles.From their beginnings in the on-premise of pubs and nightclubs en-ergy drinks now provide a pick meup in both social and non social con-sumption occasions. As the stressesand strains of our daily lives taketheir toll, energy drinks are used torelieve physical and mental tirednessfor drivers, workers, students andsporting endeavour alike.

As elsewhere in Europe, the Irishmarket is seeing a new generationsports and energy amalgams in thedual function of focusing the mindand delivering replenishment both

physically and mentally. Tapping intothe consumer desire for better foryou drinks, natural ingredients suchas guarana, ginseng and tea are alsobeing introduced, taking the energydrinks category towards a new styleof functionality.

A consumer desire for energy and apassion for sport is commonplaceacross Ireland using sports and en-ergy drinks to refuel and revitaliseduring work and recreation has be-come time-honoured among con-sumers. The category is being drivenbe the correlation between physicaland mental energy with natural ac-tive replenishment.

Conditions across the on-trade sec-tor are difficult. Footfall is down. Softdrinks are perceived as being too ex-pensive. However, building on thesuccess of energy drinks as fun, re-freshing alternatives to alcohol

seems to be a hit with players in thismarket.

The big news in the Irish EnergyDrink sector is BURN which hasmade a huge impression on the Irishmarket since its launch in grocery inJanuary 2008.

BURN is also reaching out to its tar-get audiences by owning two radiosponsorships that will run for 3months, commencing Feb 15thThe ‘Lock in’ with Dara Quilty onDublin’s Spin 103.8 and ‘The HitList’ with Stevie G on Cork’s Red FMwill both be supported with stingshelping to drive the ‘taste’ messageas a strong call to action and drivefurther awareness for BURNamongst the target 16-29 year oldenergy drinkers.

Red Bull Energy Drink is a functionalbeverage with a unique combinationof ingredients. It made for momentsof increased physical and mentalstress and to improve endurance,alertness, concentration and reac-tion speed. It revitalises body andmind.

After creating and successfully lead-ing the energy drink category forover 20 years, Red Bull is now en-tering the largest non-alcoholic bev-erage category in the world with acola made of ingredients from 100%natural sources. In addition, it’s theonly cola which contains both theoriginal kola nut and the Cola leaf.Red Bull Cola was initially launchedin Austria, Switzerland, Italy, the UK.Ireland, Russia and Las Vegas.

Boost Drinks has proved a huge suc-cess since its launch in Ireland. Re-cently Boost was re-branded usingthe high impact colours blue andblack. The new bottle will augmentsales and continue to offer impres-sive profit margin. Boost is availablein 500ml and 1-litre resalable silverPET bottles. With added energy re-leasing B vitamins, caffeine andamino acids, such as taurine, Boostworks alongside the existing naturalmetabolizers found in the humanbody to provide an extra boost forenergy.

CATEGORY: Sports/Energy

The combined sports and energy drinks market has reached 52 million litres. This sector traditionally differs –with sports drinks providing hydration and replenishment before, during and after exercise; whilst energy drinks

provide a glucose or caffeine consignment for a boost throughout the day.

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Burn is a registered trademark of the Coca-Cola Company.

ENERGYHAS A TASTE.

INTENSE ENERGY

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Bottled water is one of those cate-gories that maintains a huge poten-tial for further growth according tomarket analysts. Despite the upsand downs of the overall soft drinksmarket, the Irish bottled water sec-tor leads the category in volumesales. In fact bottled water is out-growing the carbonated soft drinkssector particularly with valued-added waters that claim to offer cos-metic or health benefits. In addition,convenience still manages to be amotivator for bottled water con-sumption.

This perception for future growth isconsistently linked with rising con-sumer health awareness and interestin choosing ‘good for you’ products.Increasing our water intake taps intothis notion perfectly and is a greatmotivation for new customers to getinto drinking water. We have all read

the health experts and accepted thatwe should be drinking more water -2-litres a day, according to research.

Global consumption of bottled watercontinues to grow and will be a stag-gering 251 billion litres by the year2011. In Western Europe functionalwater consumption increased to anestimated 280m litres. The lattercontinues to be driven by NPD.

Ballygowan has been Ireland’s num-ber one bottled water brand for over27 years. Bottled at source in New-castlewest, it continues to be one ofthe most dynamic companies in theoverall drinks category, producing60 million litres of bottled water an-nually.

Continued commitment to thebrand’s investment, innovation andmarketing has driven Ballygowan’s

success through the years. Sponsor-ship is also a key part of Ballygowanand this has strengthened its posi-tion and promoted impressive brandawareness.

Recent innovations include newpacks and product variants such asthe fruit flavoured range of Bally-gowan waters - introduced in linewith consumer demand for Bally-gowan ‘Hint of Fruit’ BallygowanFlavoured Waters contain no-added-sugar, no artificial colours, sweeten-ers or flavourings and are availablein 500ml packs .

Ballygowan bottles are 100% recy-clable and over the past ten yearsthe company has taken significantsteps to reduce the weight of its bot-tles, managing a 38% reduction,which is an important contributiontowards environmental conservation.

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CATEGORY: Water

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Ballygowan is committed to the on-going development of the brand andis looking forward to making someexciting announcements over thecoming months with a strong focuson the health and impulse markets.

Volvic brands play a key role in thedevelopment of the bottled watercategory with a market share of22.7%. Volvic Touch of Fruit, whichis available in three sugar-freeflavours including Strawberry,Lemon & Lime and Orange & Peach,is the number one flavoured wateron the market with an impressive34% value share.

Volvic Revive is a delicious and stim-ulating fruit flavoured water drinkthat is designed to give an invigorat-ing lift. Volvic is also available in‘Berry Blast’ flavour in a 50 cl formatwith a sports cap.

Volvic’s 12-for10-L campaign, inpartnership with World Vision Ire-land was launched in April 2008 andis on target to deliver over 1.7 billion

litres of water to Africa. For everylitre of Volvic and Volvic Touch ofFruit sold in Ireland and the UK,Volvic and World Vision generated10-litres of safe drinking wateracross Africa through the provisionof merchandised wells.

Tipperary Natural Mineral Water isa significant player in the Irish bot-tled water market. Bottled by theGleeson Group in Co. Tipperary, therange is available in 2L, 1.5L, 1L,750ml, 500ml and 250ml PET bot-tles as well as 25cl and 75cl glassbottles. The range also includes500ml and 2L bottles of Clearly Tip-perary, a sparkling flavoured water.

A re-brand of Tipperary Kidz wascompleted in late 2008. The newbottle contains 20% less plastic,making it more environmentallyfriendly. It now has a one piece flipso it is child safe and easier to use.Another interesting feature is thebottle’s ambidextrous grooves whichprovide an ‘ezi-grip’ for either hand.

These product innovations will en-sure that Tipperary Kidz continuesto lead the way in the children’swater category. With these re-brandsand significant activity planned,2009 promises to be a great yearfor the Irish brand, which featuresthe successful strapline ‘Tipperary -Part of You’.

Deep RiverRock is a high quality,pure Irish water and is bottled fromsource in Tullynacross, Co. Antrim. Itcontains essential minerals such ascalcim, Magnesium and Potassium,all naturally occuring within thesource.

Deep RiverRock continues to drivethe water category both in terms ofvalue and volume through innova-tion and satisfying consumer de-mands. The brand’s 1.5-litre hassurpassed the 2-litre to become thesecond biggest pack size segmentwith grocery. Deep RiverRock alsolaunched a range of flavoured waterfree from artificial colourings,flavourings and sweetners.

Evian is the number one water brandin the world. It is purified through anatural filtration process that spansover 15 years, deep within the

French Alps. Evian is available inmany different formats such as 50cl,75cl and 1-litre so there is a bottlesize to suit every consumer andevery occasion whether they aredrinking Evian on the go or at homeas part of a health consciouslifestyle.

Vittel has been undergoing a nation-wide relaunch as part of a pan-Euro-pean ‘ReVITTELLisez Vous’programme and is now establishedas one of the country’s premiummineral water brands, appealing tothe discerning consumer who desiresa sophisticated high-quality water. Itis available in 500ml and 750ml onthe go packs and a 1.5ltr ‘takehome’ pack.

H20H! Was launched two years agoand rose up the market to capture anumber three position a mere sixmonths after its launch. The brand isnow the number two flavoured waterbought on impulse. H2OH!’s sugar-free and no-calorie features make ita popular choice among health con-scious consumers.

A H2OH! 1.5-litre bottle is availableto enjoy at home. With its modern,colourful and ergonomically de-signed bottle this lightly sparklingfruit flavoured water will look goodin the hands of any fashionista!

CATEGORY: Water

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CATEGORY: Coffee

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For a long time, image and lifestylechoices in Ireland were viewed asmore important than ever with theaccent firmly on youth, sophistica-tion and fast paced living. Coffeewith its energy-providing properties,as well as its refined continentalimage has sat well with the risingprofessional class in Ireland. Theboom in Irish coffee drinking overthe last decade was fuelled by ahuge 80% growth in specialist coffeeshops since 2001.

Coffee is increasingly a favoureddrinking option for many consumers.Despite being a mature market,there are lots of new product activ-ity encouraging consumers to tradeup to premium sectors with conven-ience revitalising the roast andground sector through on demandpod machines.

Over the past few years, the com-plexion of many a main street acrossthe country changed as coffee shopstook up position on every street cor-ner. The metamorphosis in Irish cof-fee habits has been as rapidlydeveloped.

As house prices rose, so too did ourappreciation of coffee. These daysthe traditional desire for coffee is be-yond what it was in the 80’s and 90’s– a rather bleak blend of browngranulated liquid. Today it’s all dou-ble espressos, frappacinnos and lat-tés.

However, as the hazy days of eco-nomic boom fade into distant mem-ory and recession takes a reality biteinto our little expensive habits, take-away coffees on the way to work willsurely be culled. Put another way,consumers are already replacingtheir morning takeaway Americanowith homemade blends poured intosilver hot mugs. As most Irish coffeedrinkers will not want a return to thebland old days of bad coffee thereshould be no reason to compromiseon the quality of coffee we drink.Hence there is an opportunity forcoffee manufacturers to fine tunetheir coffee blends to the same stan-dard as a coffee shop takeaway.

Consumer expectations and de-mands have all fuelled the growth ofcoffee over the past few years whichhave widely expanded the choiceand variety of the market. Standardformats of coffee are faltering in theface of consumer preferences for va-riety and innovation. Instant stan-dard coffee registered the slowest ofany coffee category.

Despite this, standard formats con-tinue to characterise the industry inIreland with instant coffee continuingto represent the bulk of total offtrade coffee value share. The spe-ciality coffee segment is expected toincreasingly expand beyond cappuc-cino; the leading product in the seg-ment.

Producers are expected to increas-ingly expect to shift focus furtherinto other instant speciality varietiessuch as mocha and latte over theforecast period, as consumers be-come more accustomed to specialitycoffee blends.

Growth in coffee pod volumes ap-pears limited at present and avail-ability through off-trade channelsremains poor – the format will bearscrutiny over the forecast period, ac-cording to the trade, as consumertastes become more sophisticatedand ownership of single-serve ma-chines gradually increases.

Research shows that Bewley’s is themost popular brand of coffee andmachine purchased by companies inIreland today. Bewley’s has been ex-ploring, sourcing and roasting coffeefor over a century. It is a leading sup-plier in offices, café’s, restaurantsand 4 and 5-star hotels across thecountry. The company is also strongin fresh coffee.

There are some 3,000 cups of Nes-tle coffee drunk every second. Need-less to say the Nescafe range ofinstant coffees are a market leaderin Ireland with many favourite vari-eties including Nescafe Original,Nescafe Gold Blend, Nescafe BlackGold, Nescafe Decaff and NescafeAlta Rica to name just a few in its

repertoire.

The Kenco Coffee Company has beencoffee experts since 1923. TheKenco range offer quality choice andconvenience for every potential hotdrinks occasion by providing a hostof well loved branded favourites, in-cluding Kenco Instant Coffee.

Robert Roberts is a leading coffeeroaster in Ireland. Its brands includeJava, Kenyan, Colombian, Fair-tradeDecaffeinated among others. Its lat-est edition to the range if RobertRobert’s Panama Boquete – amedium bodied estate coffee with ahoneyed sweetness and a crisp extrafinish.

CATEGORY: Coffee

The speciality coffee range is expected to increasingly expand beyond cappicinno, the leading product. Producersare expected to shift focus further into other instant speciality varieties such as mocha and latté as consumersbecome more accustomed to speciality coffee blends. Premium hot drinks are viewed as indulgent treats and af-

fordable luxuries, which consumers are often prepared to pay more for.

As house prices rose,so too did our

appreciation of coffee.These days the

traditional desire forcoffee is beyond what itwas in the 80’s and90’s - a rather bleakblend of browngranulated liquid.Today it’s all double

espressos,frappacinnos and

lattes.

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The latest is aimed at women whodrink three cups of tea a day andare, according to the latest study,are as a result less likely to sufferfrom heart attacks and stroke. Inter-estingly, no added benefit of teadrinking was found among womenwho only had one or two cups a day,or for men. It is benefiting from thetrend of consumers creating newdrinking occasions in an effort to sat-isfy conflicting needs, with health aconsistent driver.

Tea is making an impressive come-back, slowly overtaking the lastdecade’s obsession with all thingscoffee. Perhaps it’s the credit crunch,which has reverted consumers backto basics who are realising that pay-ing €4 for a take-away cup of latte isan indulgence they can eliminate tosave some money.

Young consumers in particular areshowing a renewed interest in tea,and that’s traditional black tea, not

just herbal and fruit teas. Part of thisreason seems to be the revival of thetraditional high tea of scones, cakesand a pot of tea. The event is be-coming fashionable again and with anew younger clientele which is re-dis-covering the charm of tea. In addi-tion, a lot of people have expresseda weariness of chains and coffeehouses and are perhaps realisingthat a pot of tea and a scone is bet-ter value than a grande latte andprocessed muffin.

Despite the ubiquity of coffee shops,tea plays a central role in Irish life.Ireland has the highest per capitatea consumption in the world at 3.2kg per head per year. The quality oftea drunk in Ireland is also the high-est in the world and is still rising.

Rising disposable incomes havegiven many consumers means to af-ford higher quality products in re-cent years. Sales of speciality teacontinued to drive value growth

meanwhile, extra spending on pre-mium lines compensated for stag-nant volume growth.

Brands focused on developing andmarketing decaffeinated blends thatcompared in taste and quality to reg-ular tea, and the strong growth ratesexperienced by these products istestament to their quality.

The Irish public is discerning when itcomes to tea with regard to taste,leaf appearance and quality. Prior tothe Second World War most of thetea bought in Ireland was purchasedin the UK, either in the London Auc-tion or privately.

This all changed after the war. Ra-tioning ended and tea was price con-trolled and allocated to the Irishwholesalers in proportion to theamount of tea the country had pur-chased between January 1936 andJune 30 1939.

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CATEGORY: Tea

There are a number of key trends influencing growth in the tea market including ethics, health,indulgence and convenience. Moreover, there are a number of studies which inform, us of the various

health benefits of drinking tea.

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Tea is the biggest supplier of theflavonoid antioxidant in the Irishdiet. An average cup is virtually calo-rie free and is a good source for hy-drating the body. Herbal tea hasbecome very popular in connectionwith consumers’ pursuit of healthand well-being.

In fact, it is hard not to find innu-merable herb blends from all themajor tea brands. Reasons for theexplosion of the herbal tea marketare numerous. Primarily, there is ahealth trend that is pushing con-sumers towards products that arefree from caffeine, sugar and fat, aclaim that tea has always been ableto make, but there is also an envi-

ronmental ‘green think’ aspect whichis motivating consumers to purchaseall-natural products, with no flavour-ings, preservations or additives.

Many young people are turning theirback on traditional teas in favour ofexotic new herbal, fruit and special-ity teas. It seems traditional teas willhave to lose its ‘staid’ image to re-main popular as sales of herbal andfruit tea rose by 30% and specialityvarieties like Green tea continue tosurge.

Up to 70% of people aged over 65and over drink traditional tea atleast twice a day compared with only38% of 15-24 year olds. But youngpeople appear to be sipping exoti-cally flavoured teas, many of whichdon’t contain caffeine. The overalldecline of the market, which re-searchers say is partly due to pricesbeing cut in discounts has beencurbed by consumers turning to spe-ciality, herbal and fruit teas.

However, despite falling popularity,standard tea bags still make up forover 60% of the total market withherbal and fruit teas accounting foran estimated 27%. Green Tea, which

is high in antioxidants, is increas-ingly popular. Equally, white tea isexpected to make its mark as a fash-ionable new health tea drink.

Overall the tea market has becomemore segmented with some varietiesbeing marketed for their health ben-efits and others for their anti-stressvalue.

Barry’s Tea has a long establishedreputation and heritage as Ireland’sleading tea blenders. The company’steas are also selected from the besttea estates in the world from India,Kenya and Rwanda. Its varieties in-clude Gold Blend, Green Blend, Clas-sic Blend, Decaf and Herbal Teas.

Lyons Tea is Ireland’s biggest andbest loved brands and has been inexistence since 1902. Lyons OriginalBlend is a blend of the finest teas inthe world. Its other brands includeGold Blend, Gold Blend Reserve,Kenya Blend, Green Tea and Decaf-feinated.

CATEGORY: Tea

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New product development and ex-isting products have also grown theprofitable gadget and electronicmarket with batteries required ineverything from board games to chil-dren’s books and toys. According toMintel, the growth in battery pow-ered devices has been dampened bytwo main challenges facing batterymanufacturers.

The first challenge is that consumersare converting to longer life productscausing a fall in the replacement rateof batteries which has a resulting im-pact on volume sales. The second isthe effects of heavy price promo-tions, which constantly erode valuein the market, particularly at timesof natural uplift, according to Mintel.

The industry is combating this situa-tion by focusing on premium prod-

ucts launching new lithium productsspecifically targeted at high drain de-vices and rechargeable products in-cluding chargers.

Despite this, a considerable propor-tion of consumers remain uninter-ested by batteries and engagingthem in premium products obviouslyproves difficult. In the face of poten-tial loss of volume, sales in the in-dustry must innovate and diversify ifvalue is to be upheld.

The Duracell name is synonymouswith long lasting power. The DuracellProfessional product range offersquality solutions. The Duracell rangeincludes Duracell Alkaline Batteries,Procell Professional Alkaline Batter-ies, Lithium, Silver Oxide and ZincAir Batteries and cells.

With over a century in the business,Energizer caters for every need fromstandard household appliances tothe growing demand for high-techdigital devices. Its battery productportfolio spans alkaline, carbon zinc,lithium, miniature and rechargeablebatteries, with more than 6 billionbattery cells produced annually.

Included in Energizer’s range is itssuper premium battery, Energizer Ul-timate. Energizer Ultimate has a20% performance important on theUltra and Premium line and has anew silver packaging design thatsports pictorial references of the de-vices that are the most suited to thenew technology.

Energizer ACCU Rechargeable bat-teries, relaunched in 2004, can becharged up to a 1000 times, meet-ing the consumer demand for fastercharging times and longer life spansonce charged. To capitalise on bat-tery sales, Energizer advices retailersto display batteries in secondary sit-tings, at the till and in high trafficareas, in addition to the main bat-tery fixture and to concentrate onthe fastest selling sizes.

Energize also produces quality flash-lights. Energizer’s DIY flashlightrange is, the Hard Case, which has adurable PVC base and steel sides,with shock-absorbing rubber edgingfor extra protection. The Hard Casefeatures an ergonomically designedhandle and the light has two stand-ing positions.

Panasonic is a pioneer in terms ofunderstanding its consumer. Tappingin to the demand for batteries com-prising higher power and longer life-time, Panasonic launched the DigitalXtreme Power Battery. Used in highdrain appliances the Digital XtremePower battery has a noticeablylonger lifespan and its power ex-ceeds that of alkaline batteries. Aswell as the Panasonic Digital XtremePower battery, Panasonic also has arange of rechargeable batteriescalled Power Pro+ designed for thelatest modern gadgets.

CATEGORY: Battery

Battery sales have been driven in recent years by buoyant sales of high tech digital devices. Innovation from bat-tery manufacturers in the market has altered as ownership of MP3 players, digital cameras and other high pow-

ered devices are found in most Irish households.

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Many factors predetermine con-sumer choice of fuel. For instance,gas is still a dominant force intoday’s market but solid fuel fireshave also become popular oncemore, with 70% of homes boastingone, whilst at the same time elec-tricity is beginning to pose a signifi-cant threat to gas.

If homes are built with a gas-onlypre-cast flue, solid fuel isn’t an op-tion. Conversely, a home that does-n’t have a gas supply and considersbottled gas too expensive, then solidfuel may well fit the bill. If there is noflue, there is the option of somethingpowered by electricity.

The average Irish household is re-sponsible for emitting approximately8.1 tonnes of Co2. Reasons for thisinclude larger average dwelling sizein Ireland. Differences in the fuel mixwith a higher proportion of solid fueluse in Ireland and a higher propor-tion of district heating systems in EUcountries where emissions are ac-counted for in the transformationsector than in the residential sector.

Considerable expansion has oc-curred in the residential sector withthe number of permanently occu-pied dwellings up by 43% to reach1.46bn. A report by Sustainable En-ergy Ireland (SEI) says of thesedwellings, that about 144,171homes are experiencing fuel poverty,with the lowest earners spending anaverage of 13% of their disposableincome on energy while the highestearners spent 1.7% of their dispos-able income on energy. We have alsoendured sharp increases in electric-ity and fuel prices from June 2000to January 2008. Household elec-tricity, for example, doubled duringthe period while the price ofkerosene rose by 78% and naturalgas by 87% during that period.

There is an interesting trend emerg-ing in the solid fuels market from Eu-rope - a return to coal. Countries likeItaly are returning to coal for powergeneration to 33% up from 14%,despite climate change concerns.Italy is not alone in its return to coal.Driven by rising demand and record

high oil and natural gas prices, up to38% of global electricity is gener-ated from coal. Australia, Poland,South Africa and China all rely oncoal to produce over 75% of theirelectricity, India over 60%, and theUS and Germany more than half.

The total domestic ignition market inIreland is growing at 11% andreached €30m in 2008. Bord naMona continues to be the marketleader with its range of solid fuelproducts including Bord na monaFirelogs. In 2009, the companylaunched its range of Eco FriendlyFuels, which are all made from natu-ral renewable resources. The rangeincludes Premium Wood Pellets,Bord na Mona Wood Logs, Bord naMona Firelighters and Bord naMona Eco Friendly Real Logs.

One of Bord na Mona’s most popu-lar products is the firelog. Thelaunch of Firepak has performedstrongly in the convenience real-firemarket. The Firepak is a quick inno-vative product, placed in the fire

grate and simply lit. Both the Firelogand Firepak are seen as an essentialfor all retailers to stock, with PeatBriquettes offering an easy andquick to light alternative.

Bord na Mona manufactures andsells quality firelighters under theBord na Mona brand name. 2008saw the introduction of Bord naMona individually wrapped fire-lighters made from Irish peat.

Firelighters account for over half thesolid fuels market and are growingat 7.3%. Wrapped firelighters com-prise 9% of the total ignition sectorwith growth of 13% . Standard fire-lighters account for 59% of the totalmarket in value terms followed byconvenience logs at 23% and bulkfuel/coal bags at 11%. In value termsBBQ comprise 6% of total ignitions.

Zip is the global leader in the manu-facture and development of fire-lighters. Last year Zip launched anew block firelighter on the Irishmarket called New Energy.

CATEGORY: Fuel

Heating one’s home has endured extreme ups and downs in the last year. From record highs in oil, gas andelectricity prices in January to record lows at the beginning of 2009, consumers are, naturally, keen to see a

little more balance.

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The product uses proprietary tech-nology to deliver the renowned Zipquality in a smaller cube size and ata lower price point. Energy + Fire-lighters are available in packs of 15,30, and 48.

Modern high efficiency heating solu-tions represent the future for Irishhouseholders. As fuel costs continueto show erratic patterns since Janu-ary 2008 consumers are looking fora cost-effective way to heat theirhomes in these economically chal-lenging times.

Calor Gas has developed innovativeheating solutions for the domesticand business markets that are bothenvironmentally friendly and cost ef-ficient. Spot heating provides instantheat when and how consumers wantit. With spot heating consumers donot need to have to central heatingturned on all day. This not only helpssave energy, it reduces energy costsand is good for the environment.Calor Gas mobile heaters provide in-stant heat and its range provides top

performance with style, mobility andcost efficiency to suit all budgets.

The Provenance, from Calor Gas, isan addition to the spot heating mar-ket. It has been specially designed toblend in with the layout of any home.Developed in Ireland, the Prove-nance is 100% portable whichmeans the installation costs or asso-ciated works such as the need for asocket or flue chimney. The Provenceis fuelled by the well-known CalorGas 11.34 kg butane cylinderhoused decoratively within the stove.This means excellent efficiency witha maximum heat output of 3kw forsafety, the Provenance features aSafety Oxygen cut-off which cuts-offthe appliance of carbon dioxide lev-els in the room rise above a safelevel allowing peace of mind for con-sumers.

Flogas is one of Ireland’s largest sup-pliers of bottled gas which it marketsvia a nationwide network of dealers.A nationwide network of Flogas aftersales personnel are on a 24 hour call

for appliance repairs and mainte-nance. Flogas supports all its prod-ucts, services and plans throughinnovative dealer promotions pointof sale, targeted advertising andpublic relations.

The Superser heater range from Flo-gas Ireland is an instant, economicaland portable way to spot heat aroom quickly without having to turnon the entire central heating system.The range includes the popular andstylish designed Flogas Superser Ra-diant heater and Flogas SuperserCatalytic heater. In particular, theSuperser Catalytic burns without aflame and has lower touch tempera-tures, making it safer. Both heatermodels are fitted with easy slide cas-tors for trouble-free moving fromroom to room.

In addition to heating, the demandfor accessible and affordable gas inthe leisure market has risen sharply,particularly for usage of barbequesand patio gas heaters in the summermonths.

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CATEGORY: Fuel

The total domestic ignition market in Ireland is growing at 11% and reach€30m in 2008. Board na Mona continues to be the market leader with its

range of sold fuel products.

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Few will doubt the evolution of themale grooming market. No longerjust about razors and shaving foam,the market comprises some key seg-ments including deodorants, shavingpreparations, personal wash prod-ucts, men’s skincare, men’s haircareand men’s bodycare.

Regardless of changes in the tradi-tional makeup of households,women remain the principle shop-pers for families. This means thatwomen are buying grooming prod-ucts for young men under-18 (in-cluding under-25 men still living athome) as well as for husbands andpartners.

The majority of male grooming prod-ucts are seen as a household stapleitem and as such can be purchasedwithout the input of the male con-sumer. This remains a disadvantageto companies and retailers alike whoneed to encourage men to becomemore engaged in products.Men’s literature such as weekly mag-azines is important in communicat-ing what is available on the marketas well as the benefits of the prod-uct. In a similar way to women’smagazines, samples could be offeredin every issue to encourage malereaders to try new products.

The male grooming market shouldnot be underestimated. One of themain drivers is the growing numberof men who are interested and con-cerned with their appearance. Menare now being advised about howbest to dress and also how to takecare of their hair and skin. This hasbeen in part led by men’s magazinesand prominent male celebrities suchas David Beckham and GeorgeClooney.

A decade ago, men could not haveas easily availed of information thatis around today. Aside from maga-zine, men are readily receiving infor-mation about grooming products onthe internet which have long re-moved any doubts about lookingafter one’s appearance.

As women are likely to be the main

purchasers of male grooming prod-ucts, the industry needs to appealbeyond the male audience and intothe female market. Some ways to at-tract attention would be to use malemodels at beauty counters in thelarger department stores, free sam-ples of male grooming products inwomen’s ,magazines with a couponfor repeat purchasing and more ad-vertising in the female orientatedmedia.

The male grooming market, all Ire-land basis, is valued at €103.1m, in-creasing by 24%. The market in theRepublic is worth €62m rising by26%. The multinationals dominatethe male grooming market with ownlabel brands from retailers holding amarginal proportion of retail sales.Gillette is currently the marketleader in the shaving preparationscategory, with no other brands re-motely close to its position, with dis-posable razors, razors and shavingpreparations. There is further poten-tial to develop the Gillette brand inother areas of the market, as menmay be more disposed to buying abrand if they already have a positiveexperience of it in another marketsector.

Deodorants account for the largestsector of the market, valued at€18.2m, representing 29% of themarket share. Shaving preparationsare the second-largest segment ofthe male grooming market account-ing for 25% of the total market valueand worth €15.6m. Personal washand bathroom products, includingshower gels and bath oils currentlyhold an estimated 20% of the malegrooming market, worth an esti-mated €12.2m. Skincare productsare worth €6.8m representing11.0% of the market

Older men’s routines consist of tak-ing a shower or a bath, washing hairand cleaning and flossing teeth.Whilst men in the younger sectionsof the population, notably thoseaged 15-34 will be more engaged inthe market and inclined to use prod-ucts that fall outside the realm ofpersonal hygiene such as hair styling

and skincare products.

Younger men no longer consider con-cern over their appearance as a com-promise on masculinity. These menwill be most likely to adopt newforms of male grooming such as skin-care routines. Whilst men in theolder sections of the population arenot as easily convinced and will havea very traditional method of groom-ing which involves primarily washingand shaving.

Older men will have taken groominghabits from their younger years intoa different life stage and will be leastlikely to experiment with differentbrands/products. These men mightwelcome products such as hair col-orants or skin treatments that en-hance the texture or colour of theskin by providing a healthy glow.

There are very few shampoos on themarket to treat hair thinning or bald-ness, which affects a considerableproportion of the male populationover a certain age. Manufacturersshould embrace this trend by offer-ing a wider selection of products toaddress this need. Other types ofskincare products such as facialscrubs and under-eye treatments areless likely to be used by men in thegreying years and it might be impos-sible for manufacturers to ever turnthis around.

Male grooming products such asanti-ageing skincare, anti-celluliteand body firming treatments andhair removal creams are still verymuch niche products and it is diffi-cult to predict if these will move intomainstream or not.

Manufacturers need to be careful interms of the language they use totarget men by not over using scien-tific terminology, as with thewomen’s cosmetics market, and bycommunicating the functional bene-fits of the product without boggingme down with to much fact.

Usage of anti-ageing treatmentssuch as under eye creams orgels/creams to reduce bags, collagen

CATEGORY: Health & Beauty

For a number of years now there has been growing pressure for the average man to take care of himself andhence, spend more money doing it. As a consequence, the media has pushed this concept, backed by multina-

tional health and beauty companies, to acceptability. The challenge for this market is to encourage men to adaptto more varied daily grooming routines without compromising their masculinity.

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fillers and anti-wrinkle moisturisersare not strictly confined to the fe-male consumer base. There are afew male specific anti-ageing treat-ments on the skincare market formen to treat wrinkles under-eyebags and skin slackness, howevernowhere near the same level as forwomen. There is potential to furtherdevelop this market segment whentargeting men with skincare prod-ucts as men are also concerned withthe ageing process despite the factthat some men are not willing tadmit to being so.

Men are far behind women in termsof the purchasing of personal careitems and ‘embarrassment’ may beone reason for a reluctance to spendof a range of items. Data shows thatat least one in five men is put offskincare products because they per-ceive them to be female products. Inone survey, it was acknowledgedamong participants that certainbrands and environments are morepermissible than others. Nivea forMen has quite cleverly tapped intothis market and was seen to be ac-ceptable and appropriate.

This is perhaps as this product fitsinto the ream of shaving, rather thangeneral personal care and en felt itwas a ‘male’ brand and not one withovert female overtones. It was notedthat the level of discomfort with theissue of extending male groomingwas reflected in the switching of

male respondents to talking a ‘thirdparty’ rather than themselves.

Another interesting finding was thatthe adoption of products may be lim-ited by the lack of other peopleadopting the products. Men agreedthat they would have to accept a cer-tain degree of teasing from friendsbut as the behaviour became morepredominant then it would becomea normal activity and ‘they’d all be atit!’ (Male, aged 18-25). Conse-quently, marketers may find that en-couraging women to buy on men’sbehalf might increase product useand adoption.

Christmas is a key time of the yearto purchase gifts for loved ones.Christmas is the ideal time to en-couragement to try products theywould not normally use in the hopethat they will see the benefits of theproduct once tried and tested even-tually made a repurchase. Likewisegift packages can encourage peopleto buy products for men that theywould not normally buy for them-selves. One good example is anti-ageing treatments or facialtreatments.

Future projections show a steadyrise in this market over the next sixyears. Mintel predicts that the malegrooming market will rise by 25% inthe next three years. The most diffi-cult challenge for manufacturers willbe to encourage men over the age of

40 to expand upon their currentmale grooming routine that tends toconsist mainly of showering, shavingand hair washing. Products whichmeet functional needs such as haircolorants for the moustache, beardand sideburns may be an effectiveway of targeting this category ofmen.

The deodorants and antiperspirantssector has expanded to include awider range of formats outside tra-ditional aerosol cans. Growth in themarket has been driven by antiper-spirants whilst body sprays, accord-ing to trade sources seems to be inunit decline. The market has seen asteady rise in branded manufactur-ers with aerosol offerings launchingantiperspirant roll and stick formats.

There has been a slight blurring ofthe boundaries between the maledeodorants and body sprays withLynx including Lynx Dry, a bodyspray with anti-perspirant proper-ties. New product developments inthe deodorants market claim to offerimproved staying power in terms ofincreased durability. Sure and Niveaare two of the leading layers in thismarket with a range of antiperspi-rant deodorants for men andwomen. The Nivea deodorant rangeof men has expanded to even in-clude deodorising wipes in recentyears.

CATEGORY: Health & Beauty

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The shaving preparations sector, en-compassing both disposable razorsand pre and after shaving treat-ments, has experienced a particu-larly high level of innovation inrecent years in terms of new productdevelopment. Disposable razors ledprimarily by Gillette, have increasedthe number of blades to improve theeffectiveness of the product and fur-ther segment market.

Gillette continue to be market leaderin the blades, disposable razors andshaving preparations markets and isthe only brand to excel in both mar-kets. Gillette blades and razors ac-count for 78.3% of the total marketshare and the company holds 60.9%of the shave preparations category.Gillette is driving new product devel-opment and category growth withstrong investment in the brandthrough marketing support such assponsorship, advertising andcelebrity endorsements. Otherbrands which are strong in this sec-tor include Wilkinson Sword and BIC.

Sure for Men sport shower gel andAdidas Active Body care range formen, which includes shower gels anddeodorants, offer personal washproducts for male grooming. Othermanufacturers of male groomingproducts include Radox, Lynx andPhysio Sport. Shower and bath prod-ucts are increasingly offering multi-ple benefits, outside the usualcleansing properties such as mois-turising, nourishing and skin protec-tion. Manufacturers have launchedseveral sports shower gels to appealto men participating in sports activi-ties including gym usage.

Some of the leading brands in theskincare market have extended theirproduct portfolio by moving into thepersonal wash market includingDove and Nivea. The Nivea for Menrange, from Beiersdorf is a top per-former in the personal wash sector,consisting of Moisturising ShowerCrème, Revitalising Shower Gel, Fit-ness Gel and Energising Shower Gel.The haircare market for men has stillto reach its full potential in compar-ison with other sectors of the malegrooming market. Men primarily useunisex brand offered by manufactur-ers such as Wella, Shockwaves, Pan-tene shampoo and Head andShoulders which all target men in

their advertising campaigns. Manu-facturers have been slow in develop-ing male specific shampoos andconditioners mainly due to the factthat they feel men will not respondto these products and will continueto use established brands.

Premium manufacturers such asClarins and Clinique have been muchquicker to respond to demand formale specific haircare products byoffering hair and scalp treatmentsfor men. Manufacturers have beenreluctant to launch hair conditionersfor men as there is a distinct possi-bility that men will not buy into thismarket sector. Hair conditioningproducts for men are mainly offeredas 2 in 1 combination – shampooand conditioner in one. This is prob-ably die to the fact that men will notspend time applying conditionerafter they wash their hair and wantone product that cleanses andwashes in one go.

New product developments in hairstyling products for men, includingwax, gels, sprays, mousses andserums, have been more active thanwith hair cleansing or conditioningproducts. Hair styling products areincreasingly becoming an importantpart of the male grooming routine asmen take more pride in having theirhair cut regularly and using hairstyling products to achieve a certainlook.

Hair colorants for men are becomingmore widely used with manufactur-ers such as L’Oreal and Wella intothe needs of the make consumer.Some men are probably just as con-cerned with going grey as womenand will be willing to spend money

on hair colorants to use in the pri-vacy of their home. The range of haircolorants on the market for men ismuch more limited than for womenwith products such as Just for Mendisplayed alongside other malegrooming products rather than inthe hair dye aisle.

The skincare market for men is de-veloping as a new product develop-ment activity is growing althoughnowhere near the same pace as forwomen’s skincare products. Themarket leader in the skincare mar-ket is the Nivea brand by BeiersdorfNivea pioneered the entry of skin-care products for men with thelaunch of Nivea for Men in the malegrooming market. The Nivea brandwas already a strong contender inthe women’s skincare market andsuccessfully made the transition intothe male grooming market due tothe strength of the Nivea brand.

The Nivea brand is no longer theonly mainstream brand competing inthe skincare market with entry ofL’Oreal Paris Men Expert. L’Orealused the colours orange and silver inits brand packaging to ensure theproduct would stand out POSagainst other masculine colours.

Premium skincare brands for menare starting to increase their pres-ence in the skincare market now thatmen are prepared to pay more forquality and added skincare benefits.Brands such as Clinique and Clarinsfor men have extended the range ofproducts now available for men to in-clude exfoliating treatments, under-eye concealers and anti-ageingmoisturisers.]Souce: Mintel

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CATEGORY: Health & Beauty

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The Irish household care market ex-perienced slightly stronger growthafter two years of stagnancy. Themost important product segment ofhousehold care – laundry care –faced decline as a result of competi-tion from the multiple sector as wellas the greater influence of lowerprices at discounters.

Equally, other key categories like toi-let care, dishwashing products andaircare continue to show confidentsales growth. Dishwashing productsshowed a significant turnaround inperformance, augmented by a flurryof new product development (NPD).This mature market has been revi-talised by value-added detergenttablets, such as Finish 5-in-1 Power-ball and Fairy Active.

The years of economic prosperityhave had a positive effect on thehousehold care market. While con-

sumers had greater discretionary in-come levels, there is less time tospend on household chores. As a re-sult the market as a whole witnesseda wave of all-in-one products capableof doing more than one cleaning jobat a time, including killing germs,smelling nice, extra cleaningstrength, conveniently packaged andof course, premium priced.

Equally, home improvements havebeen one of the most popular trendsof wealthy Ireland. Manufacturerswere therefore creating innovativeand value-added cleaning solutions.This has been the case in the marketfor some years but there are chal-lenging times ahead as globaleconomies, including Ireland’s,struggle in recession and consumers’priorities come into sharp focus.Suddenly, consumers will questionthe need for an all-in-one superbrand name when a supermarket

own label equivalent can do the jobbut more importantly at a fraction ofthe cost. Big name brands are un-doubtedly facing pressure from ownlabel household care products asvalue takes on a new important roleon the slimmed down shopping list.Unilever Plc, Procter & Gamble(Manufacturing) Ireland Ltd andReckitt Benckiser Ltd have main-tained their top three positions. Allthree leading players continue to in-vest in marketing and NPD to sus-tain their shares in the rathermature marketplace. However, un-surprisingly the own label share gainremains tops with each of the topmultiples claiming to have increasedpenetration of own label householdcare. Own label benefits from theconsistent belief from shoppers thatthat the quality of own label is ex-actly the same as premium pricedbrand equivalents.

CATEGORY: Household

Although 50% of women are out working, 70% claim they are left to do most o the cleaning household choresand this is encouraging a shift to a little and often approach to cleaning. Household cleaning is still seen as a

chore as people generally feel they don’t have enough time to spend cleaning the home; this is underlined by thefact that they would rather be doing something else.

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Ireland has one of the highest birthrates in Europe. The years of strongeconomic growth have meant thatyoung and professionally qualifiedIrish consumers stayed at home,while an increasing immigrant popu-lation was attracted to living here.This created an increase in the num-ber of households and a higherspend amongst the population whichhas helped to push volume andvalue growth in household care.

There is expected to be a slowdownin growth over the next few years notjust because of recession, but asmanufacturers struggle to conjure upnew products and major innovations.Rather than product launches thatfocus on physical attributes andfunctionality, NPD will increasinglyfocus on more abstract and intangi-ble properties such as fragrance andcolour. Air care currently focuses onthese areas and is expected to seethe strongest value growth as a re-sult.

There have been many important im-provements on traditional household

care products assisting unpleasanttoilet and floor cleaning. With this inmind, manufacturers have focusedon improvement of products that arehoned to make the most hatedhousehold chores easier.

The introduction of ‘Bucketless’ mop-ping systems, designed to replacethe traditional Mop & Bucket ap-proach to cleaning has been a signif-icant development in the householdcare market. Consumers who areloathe to cleaning floors with spill-prone buckets and unsanitary mopheads have gladly traded up to thesenew systems.

As a result more traditional floorcleaning products have experienceda decline following the success ofeasier to use floor cleaning systems.Manufacturers also saw a gap in themarket for similar devices to maketoilet cleaning less of a chore for con-sumers. Toilet cleaning is under-standably the least favouredhousehold chore for consumers andthere are valid concerns about thepossibilities of germs on the toiletbrush.

CATEGORY: Household

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Disposable, refillable, replaceableand flushable cleaning devices haveemerged as a consequence whichmeans consumers can operate clean-ing efficiently and thoroughly with-out worrying about lingeringbacteria. Similar advances havebeen made on perceived ‘dull’ house-hold cleaning products such aswipes, fabric fresheners, car freshen-ers, liquid cleaners, gel cleaners,3in1 cleaners.The relevance of innovation to mosthousehold care manufacturers is un-derlined by the fact that for somecompanies up to 40% of revenuescome from products that are nomore than three years in the market.New products coming on the marketin the future are likely to include so-lutions to cleaning problems manyconsumers may not have even con-sidered, such as cleaners which seekout ‘invisible’ stains and laundryproducts that not only protect fromlime scale build-up in washing ma-chines but also in clothes.

Such higher margin new productsare backed by some serious adver-tising spends. For instance, ReckittBenckiser revealed that it’s alreadysubstantial marketing budget in-creased by 10% over the first half of2008 or more than 13% of its rev-enues.

CATEGORY: Household

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Household fresheners are the largestgrowing sector of the household caremarket. The market is being drivenby technological advances notably inthe time release segment and theevolution of a wider range of for-mats. Marketing initiatives seeking

to elevate the status of the air fresh-ener to lifestyle accessory have alsohelped further premiumisation.Killeen is the no. 1 player in thecleaning product and refuse sackmarket, with a whopping 37% mar-ket share (AC Nielsen 2007) and isdriving the category with innovationsto meet the ever changing needs ofIrish consumers.

The Killeen range is remarkably ef-fective and convenient and the prod-ucts deliver a powerful combinationof high performance whilst remain-ing value for money for the con-sumer.

The continued success of cleaningproducts such as Killeen ‘Aware’Biodegradable Refuse Sacks, 4 packmicro Fibre Cloths and 6 pack MopUps demonstrates Killeen’s abilityand commitment to meeting the con-tinuous changes in consumer behav-iour.

The Killeen Glove range has per-formed outstandingly well since itslaunch in Summer 2008. TheSmartcuff – which minimises spillsand dripping; Sensitive – which isdesigned specifically for those aller-gic to latex and Strong Scented –bring the scent of zesty lemon toyour home, are just some of the bestselling products. For garden loversthere is the Kileen garden fingersglove and really tough outdoor glove.The challenge for manufacturers is toride the change that is putting pres-sure on consumers to improve theirgreen credentials. Although the mar-ket is continuing to innovate and in-vest in marketing spend, there is nodoubt that the credit crunch com-bined with the rising cost of fuel,food and power has left many con-sumers keen to reduce their usualbrands benefitting own label anddiscount brands.

[Source; Euromonitor]

CATEGORY: Household

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Innovation has played an integralrole in forcing growth in the increas-ingly saturated competitive oral careindustry. Manufacturers have had tocontinually innovate to maintain cus-tomer loyalty and differentiate them-selves from competitors.

Advances in technology have en-abled manufacturers to deliver bet-ter quality products with addedvalue. As Irish consumers have be-come more sophisticated, they arelooking for products which include

additional benefits such as anti-age-ing properties.

High penetration rates have servedto constrain growth of oral care saleson a global basis. The commoditystatus of toothpaste and manualtoothbrushes which allow for the ma-jority of value sales has facilitatedthe expansion of own label ranges,driving down unit prices. This hasbeen particularly the case in the Irishand UK markets.

Despite this, oral care has enjoyed amarket recovery, with sales increas-ing by 8%. Factors which havehelped contribute to this growth in-clude a growing awareness amongconsumers, extensive marketingcampaigns and expanding productranges from the major oral caremanufacturers. Unit prices of locallymade toothpaste also increased asmanufacturers launched more ex-pensive, value-added products ontothe market.

CATEGORY: Oral Care

Sales of oral hygiene products were up in Ireland in the last few years, having emerged from a relatively stagnantand mature market place. Mouthwash has brought a breath of fresh air achieving strong growth. Despite a slow-down in whitening products, those with added benefits such as anti-plaque, anti-ageing or gum protection tend to

grab the attention of the consumer.

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For the big manufacturers in this tra-ditionally sluggish and mature mar-ket, innovation has become the onlyway to get ahead. This has resultedin increased categorisation acrossthe various sub sectors of oral carewith multifunctional products com-bining toothpaste and mouthwash,vibrating floss, and on-the-go fresh-ening strips.

Consumer expectations are high butprofits are higher for the manufac-turers that can provide the increas-ingly image conscious consumer withoral hygiene solutions that offer thebig three; fight plaque, give freshbreath and have whitening abilities.

Novel products featuring new useshave been flooding the market in-cluding fresh breath strips and toothwhitening products. Such productshave tapped into consumer vanityand are expected to continue todrive sector growth in the mediumterm.

Innovative brands are key to growthin this sector such as for exampleteeth wipe or finger slips productswhich are positioned as a totallyunique oral care concept capable ofremoving up to 64% of plaque thatan ordinary toothbrush is capable ofremoving.

The dry toothbrush is designed forlast minute on-the-go solutions whenbrushing with a toothbrush is notpractical. This type of concept comesat a time when the relatively stag-nant toothbrush sector, particularlymanual toothbrushes, is facing anoffset in growth by power toothbrushsales.

The flexible on-the-go format of theteeth wipes (originally developed inthe US) open up opportunity withindistribution channels that are not al-ways practical for other products inthe sector such as vending machinesin clubs, bars and transport termi-nals.

Toothpaste contributes by far thelargest area of the oral care market.According to Euromonitor, growthwas constrained by increased pricecompetition and the switch frommanual to power toothbrushes. Thelatter were generally used with lesstoothpaste than alternative formats

because of their smaller heads.

While toothpaste is mature and con-sidered increasingly mundane byconsumers, the burgeoning popular-ity of specialised toothpaste, cater-ing for different consumer groupsand needs, continues to spur growthin developed markets.

Consumers are looking for formulasbeyond basic protection includingwhitening, sensitive, child-specificand all-in-one toothpastes such asColgate Total. The growing demandfor whitening and breath fresheningproducts also resulted in many play-ers extending their brands by suchvariants to their existing ranges.

Manual toothbrushes saw growthpropelled by a shift towards moreexpensive premium products asmanufacturers attempted to counterthe pressure exerted by own label.Design innovations involved chang-ing the size and flexibility of tooth-brush heads to better access areasbetween the teeth; as well as re-designing bristle configurations andtexture to clean more effectively be-tween the teeth without damagingenamel and gums. However, the pop-ularity of power toothbrushes con-tinues to hinder sales to someextent.

Aquafresh Flex Extreme Clean Tooth& Tongue is a good example of mul-tipurpose innovation. The tooth-brush is designed to clean thetongue too, alongside its SensodyneTotal Care, designed for those withextra sensitive teeth. Both tooth-brushes are premium productsaimed at increasing value sales.Overall the stepping down of bigbrands into niche areas is evidenceof the competition price deflationhas caused in the mass segment.This, along with premium positioningand the continued protection of oralcare products as a significant part ofhealth and beauty regime, shouldbode well for positive years aheadfor this market.

The oral care market is designed toprovide clean, disinfecting, breathfreshening and whitening formulas.The latest oral care innovations havebrought new formulas and updatedforms. New formulas with combinedbenefits provide products that are

customised to each consumer need.

New forms like dissolving strips andfinger slips demonstrate the abilityof this market to innovate and createwhole new sub sectors. However,consumers will only repeat purchaseif the product offers long termlifestyle benefits. Products seeingthe most growth are those that havequantified their benefits (i.e. 30%whiter), simplified a process or beenconstructed to last longer. For ex-ample, sales of Colgate manualtoothbrushes increased 75% in thepast two years with a promise toclean both 30% better than othertoothbrushes.[Source; Euromonitor]

CATEGORY: Oral Care

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There is little doubt that Irishlifestyles have altered OTC salesfrom chemists to the supermarketshelf as consumers suffer from lackof time due to longer working hoursand less ‘me-time’. Consequently,consumers appreciate convenienceon a greater scale and have a pref-erence for purchasing all their shop-ping under the same roof.

However, this trend is due to bebucked as challenging economictimes become a reality and mean westill work harder but can’t afford theluxury of ‘convenience’. Despite theprevalence of self-medication amongconsumers many still favour seekingprofessional advice. Moreover, thetrend of buying the most powerfulmedicines available will help to neu-tralise this shift in distribution, asthese products are only available inchemists and pharmacies.

In recent years, there have been sev-eral large acquisitions of multina-tional companies, which have led tothe consolidation of the Irish OTCmarket. For example, since 2005,the worldwide Roche Consumerhealth business with non-prescrip-tion drugs and vitamins has beenpart of the consumer care division ofBayer Healthcare; Reckitt benckiseracquired Boots Healthcare Interna-tional in 2006; and Johnson & John-son bought out Pfizer ConsumerHealthcare in 2006.

Vitamins and dietary supplements isone of the most dynamic and prof-itable sectors in OTC healthcare. Thishas mostly been driven by con-sumers who wish to balance nutri-tional gaps in their eating habits. Formany years the strong Irish economyboosted this sector with disposableincome allowing consumers to main-tain a steady supply. However, re-cession times often mean consumersare forced to cut out non-essentialitems and this may present a chal-lenge to this particular sector.

The winter remedies market or Fluand cold market comprises coldtreatments, cough liquids, deconges-tants and cough/throat lozenges.Over the last two years, the cold andflu market has enjoyed strong

CATEGORY: OTC

Growth in the Irish OTC healthcare market was strong despite fewer outbreaks of cold and flu. The rise in thelevel of older people in the Irish population is expected to contribute growth in this market.

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CATEGORY: OTC

growth, driven by value-added prod-ucts, favourable weather conditionsand strong demand for deconges-tants. Major brands such as Lemsip,Beechams and Vicks command highlevels of loyalty but retailer’s ownlabel products are increasing theirpresence in the market.

The flu and cold season, starting inNovember and ending in February, isoften referred to as the ‘fifth season’.It is worth noting that research con-ducted has found that consumerswho regularly purchase cold and fluremedies are usually ill when theymake their purchases and this is re-ferred to as the ‘distress factor’. Nat-urally, this is of clear benefit tomanufacturers as someone with acold doesn’t think, they just want re-lief as soon as possible. They don’tcare how it works and they don’toften care how much it costs. Thedistress factor, along with the culturefor self-medication wherever possi-ble, means that commercial flu andcold remedies are enjoying increasedsales not just in chemists but in su-permarkets, convenience stores,petrol stations and any 24-hour con-venience outlet.

Sick leave has come under pressurein recent years as employers encour-age staff to reduce time off for sickdays. As a result many workers takeshorter periods to recover from fluand colds and this can sometimes re-sult in a longer lasting cough or cold,which would be better remedied by

longer time out. Obviously, thistrend has boosted sales of coughand cold remedies and analgesics asconsumers believe these productsare the most appropriate to continueworking while sick. Equally in the vi-tamins and dietary supplements sec-tor, the sale of Echinacea orcombination products which containVitamin C have also benefited fromthis changing social trend.

According to Euromonitor, Irishspending habits are highly influ-enced by trends in advertising. TheOTC products that are most heavilyadvertised on TV are generally theproducts which consumers tend topurchase. Highlighting this assertionis the fact that many of the televisionchannels viewed in Ireland arebroadcast in the UK, and as suchcontain ads aimed at the British con-sumer demographic. Irish consumerswatch these ads and often seek OTCproducts that are not available inIreland due to licensing restrictions.Pharmacists have frequently com-mented that they regularly informconsumers that certain products arenot available in Ireland and whenasked, ‘where did you hear aboutthese products’, they reply, ‘I saw iton TV’.

A Lansdowne Market Research sur-vey recently showed how uninformedmany consumers are on the dangersof misuse of some OTC medicines.Overall, the survey claims that Irishhouseholders took €1.13bn worth

of prescription medicines and just a5% shift towards responsible OTCself medication could save up to€151m.

According to the survey, up to 48%of Irish consumers surveyed on thesafe use of the common painkiller as-pirin said they would give the medi-cine to a child under-16. However,due to a suspected association be-tween aspirin and a rare disordercalled Reyes Syndrome, the productshould not be given to anyone underthat age. More than one in four Irishpeople would take aspirin for stom-ach pain when in fact it can be harm-ful for people with such symptomslike Ulcers. In addition, only 34% ofwomen were correctly informedwhen questioned about the safety oftaking paracetamol during preg-nancy. Although safe, it should betaken very sparingly and the recom-mended dose and medical advicemust be adhered to.

There is a misunderstanding amongconsumers that just because medi-cines are available without prescrip-tion they have no risk if usedcarelessly. Experts insist that con-sumers need to make an informedchoice even when seeking the use ofOTC. Up to 85% of consumers wouldbe confident to receive appropriatetreatment for a minor illness fromtheir pharmacist rather than a GP ifthe option was available. Effectiveself-medication treatments are avail-able as OTC medicines for more than30 different conditions, according toexperts.

The complementary and alternativemedicine market has grown steadilyover the past few years. Made up ofherbal and homeopathic remedies,purchases in this market are drivenby consumers seeking alternatives toconventional medicine to maintainhealth and wellbeing.

The OTC healthcare market in Ire-land is enjoying consistent growthwith some sectors like ‘cold and flu’proving more profitable than ever.The market appears influenced bytwo distinct factors at present theprolificness of self-, medication whichis greatly advancing market salesand the lingering recession whichrepresents its biggest challenge.

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CATEGORY: Paper Products

The disposable paper products market rose in value on the back of bullish growth accumulated during more eco-nomically prosperous times. Growth has slowed down as consumers reduced their spending, and increasing valuefor money has become the primary concern as consumers turn to cheaper economy brands, particularly ownlabel. The latter increased its market share because it offered consumers products of a similar quality to

branded items, but at a more competitive price.

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Growth of more disposable paperproducts was driven by product de-velopments launched in recent years.This is particularly true in sanitaryprotection, where the Kotex revampdrove value growth. In nappies, Pam-pers Caterpillar Plex and HuggiesLittle Walker contributed to growth.Similarly, innovative products bene-fitted from brand extensions. Thelaunch of Kleenex Anti-Viral whichclaims to trap cold viruses added in-cremental value to the tissues mar-ket.

Multinationals continue to lead theway in the market place, with Proc-ter & Gamble (Manufacturing) Ire-land Ltd, Kimberly-Clarke Ltd,Georgia-Pacific Ireland and Johnson& Johnson Ireland Ltd holding acombined share of 65%. These com-panies established their lead in theirrespective sectors over a long periodof time. Over the recent period theywere primarily responsible for thenew product launches. Irish companyTara MSL was acquired by SCAGroup in 2004, leaving only a hand-ful of indigenous manufacturers re-maining.

Discounters in Ireland saw substan-tial growth through a strategy ofrapid store expansion and heavy dis-counting on a number of limited ownlabel lines. Its impact was intensifiedby the economic downturn, whichhas seen consumers become moreprice sensitive.

Disposable paper products are ex-pected to see comparatively modestretail value growth. Consumers arelikely to continue to look for pricevalue in their purchases and aretherefore likely to buy economyranges and own label where possi-ble. An increased focus on the envi-ronmental impact of disposableproducts and the greening of Irishconsumers is likely to affect the in-dustry in the future.

The impact of rising disposable in-comes, longer working hours and thehigh value placed on leisure time hasmanifested itself in a number ofways. On the one hand Irish con-sumers are willing to pay higherprices for convenient items that cansave time or offer some form ofvalue-added benefit such as wipes or

luxury toilet paper products, for ex-ample.

At the same time they are reluctantto waste money on mid-priced com-modity products that offer no per-ceivable added-value benefit. Thishas allowed multinational disposablepaper to continue to make gains atthe expense of smaller standardbrands, primarily those from domes-tic manufacturers.

Moreover, there has also been anopposing trend in the form of risingpenetration for own label productsthroughout the disposable paperproducts market, particularly incommodity sectors like kitchen tow-els and cotton wool/buds/pads.While own label products were onceseen as cheap, low quality imitationsof branded products consumershave increasingly come to see themas offering good quality at reason-able prices

In many sectors, there is little differ-ence in terms of quality betweenown label and leading brands. In toi-let paper for example, shoppers canbuy 3-ply own label products withaloe vera which compares favourablywith equivalent brand leaders likeAndrex and Inversoft

Consequently own label productsrepresented a value share of 45% intoilet paper and a value share of24% in disposable paper productsas a whole. Despite this, own labelpenetration stayed quite low in sec-tors like sanitary protection and nap-pies. This is largely due to the factthat these products are more likepersonal care items and qualitybranded names takes precedent.Consequently, average unit prices forsanitary protection and nappies re-main comparatively high

Demand for premium products willbe boosted by consumers entertain-ing at home, particularly with guestsand the investment in the upkeep ofthe home. Growing income disparitywill also see to it that own labelproducts remain an attractive offerfor low earners.

Ireland’s cash rich time poor culturehas allowed multinational brands toretain their leading positions in more

developed disposable paper prod-ucts sectors. Reluctant to waste anymore time than is absolutely neces-sary on shopping, consumers willcontinue to go straight for thebrands they know and trust which isoften those from the big players.Multinational brands will remainstagnant in these sectors with highbrand loyalty and low own label pen-etration, such as sanitary protectionand nappies. Combined with regularinnovations, high disposable in-comes will ensure that consumersfeel comfortable paying the highercost for branded items, as long asthey can provide some form ofadded-value benefit.

Equally, own label products are alsoexpected to make further inroadsinto disposable paper products. It islikely that own label will eventuallyreplace domestic brands completelyin a number of sectors as smaller do-mestic products find themselves in-creasingly squeezed between lowprice own label and high qualitymultinational brands, they may beforced to turn to the production ofown label products for leading re-tailers in order to stay profitable.

While this strategy may provide ashort-term solution, it is ultimatelylikely to being forward their downfall,according to some in the trade. Asthe quality of own label continues toimprove, multinationals will beforced to develop innovative newproducts and marketing methods toachieve differentiation.

If there is any downfall in consumerconfidence, the disposable paperproducts market will be among thefirst to be affected. Consumers arequick to cut out luxury productsfrom their weekly shopping whenthings are tough; given the quality ofown label products is improving allthe time, they can now do so withouthaving to demand for premium prod-ucts but boost demand own labelproducts offering reasonable qualityat acceptable prices.The fact that we are currently in themidst of recession does not hold outmuch hope for many brandedfavourites.

[Source; Euromonitor]

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CATEGORY: Paper Products

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The personal care industry is ahighly complex and fast-pacedmarket. Dynamic NPD, speed tomarket, brand positioning andbuilding, merchandising and pro-motions and pricing are all vitalcomponents in the fight for marketshare. As such, growth in sales re-lies on multi-channel strategies.

The personal care market in Irelandhas begun to experience stronggrowth. The market is approachingsaturation although added-benefits,premium products and productsaimed specifically at men havehelped augment sales in recentyears.

Convenience continues to be an im-portant factor for Irish consumers.Convenient products, such as facialwipes, have benefitted from increas-ingly busy lifestyles, a situationmade greater by the high level ofworking mothers in Ireland.

Easy application and usage as wellas time saving and multi-functionalcharacteristics are the main require-ments. Some of these products havea higher price position; and Irishconsumers appear willing to payhigher unit prices if products canoffer genuine advantages when itcomes to time saving.

The Irish personal care market is ledby a number of major multinationalplayers who have been snapping upsuccessful independents. Significantchanges in overall market have beenachieved primarily through major ac-quisitions and mergers such as L’O-real’s acquisition of The Body Shop.Equally, Procter & Gamble’s multi-billion dollar takeover of Gillette con-tinues to be the trend in this market.The multiple and discounter sectorsare placing a great deal of pressureon branded products with their own-label ranges, and unit prices acrossall cosmetics and toiletries sub sec-tors.

The end of the Grocery Order in2006 signalled a price war betweenthe larger multiples like Tesco andDunnes Stores and major chemistchains like Boots in almost every subsector.

CATEGORY: Personal Care

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Heavy discounting and promotionshave allowed the multiples to in-crease their share of the personalcare market at the expense of thetraditional distribution channel ofchemists.

The personal care market is ex-pected to keep up growth in thecoming period with value-addedproducts like body lotion, 2-for1 fa-cial wipes, shampoo and condition-ers and tanning products, expectedto be the main drivers of growth.New innovations will encourage con-sumers to trade up from basic offer-ings towards the slightly moreexpensive brands and ultimately thepremium end of things, which will un-doubtedly add lasting value to themarket. Overall growth will be drivenby colour cosmetics, men’s groom-ing, skincare and oral hygiene.

While already commonplace in cate-gories like OTC, older consumers areincreasingly looking for more tar-geted products that cater for specificage-related issues at their life stage,for example in skincare, issues rang-ing from lacklustre tone and firmingrequirements for more crepe likeskin as they age. Manufacturersought to bear this demographic inmind but more importantly retailershave to make sure they are supply-ing products that cater for thesechanging expectations.

Multiple retailers are expected to ac-count for over half of the personalcare sales by 2011, departmentstore operators, specialists and in-dependents all need to improve tosimply keep up with market growth.However, margins for multiples arefacing increased challenges fromhigher costs including, fuel, rent,rates and wages

The continued strength of the multi-ple sector and other value-led chainslike Boots have influenced severalyears of price deflation among basicpersonal care products. The domi-nance of strong own label productshas furthered consumer expecta-tions of at least one very low priceoption in all major categories fromthe main multiples.

There is a growing consumer trendtowards organic, natural and ethicalproducts which create opportunities

for manufacturers and retailers tojustify higher price points as con-sumer are prepared to pay a bitmore for products that provide theemotional as well as physical bene-fits.

The number of people aged fromtheir mid-40s onward is expected torise in the next five years. Thegrowth will be stronger towards theolder age groups with a particularrise in the over-65 category, which isalso set to increase in the comingfive years.

The overall ageing of the populationdynamic is expected to have a posi-tive impact on a number of cate-gories within the personal caremarket such as OTC healthcare, skin-care, and dental care.

Conversely, a decline is expected inthe number of infants aged 0-2which is set to continue to 2010 be-fore picking up again the followingyear. This slow down in birth rate hasbeen the case for enough years formanufacturers to act. However, thisslow birth rate trend could poten-tially decrease the growth of baby-care market volumes within thepersonal care sector. This sub sectorwill instead be reliant on higher vol-ume products to drive growth.Manufacturers should take note thatrecent consumer research showedthat 75% of shoppers valued theadded convenience of non-food sec-tors like personal care aisles withinthe supermarket to allow them to doall their shopping under the oneroof.

However, it is also worth noting that44% of category management prac-titioners are unhappy with the in-store implementation of category

plans, considering it to be the mostdifficult part of the category man-agement process. Both pointsshould be considered by manufac-turers as the merchandising and dis-play of personal care products is keyto their sales.

Consumer lifestyles determine thepersonal care products they con-sume and consumption choices as-sist consumers to gain the lifestylethey want. Fragmenting lifestylespresent a complex web of influencesand triggers.

Just as lifestyle becomes more frag-mented, so personal care consump-tion patterns will take less clearlydefined paths and become individu-alised to match the lifestyles and de-sires of the individual consumer.

The market has been very active interms of new product developmentwhich has primarily been directed atwomen under-30. Added skincarebenefits offered by luxury goods areencouraging consumers to avail ofthese benefits and boost retail sales.Personal care is an innovative anddynamic sector of Irish retailing. Ithas also become one of the mostcompetitive as the concentration ofpower dissolves into fewer handsand price led activity continues withgusto.

Consumers are spending more thanever on individual health and beautyitems, a reflection on the increasingemphasis on looking attractive andyounger. If the market is to continueto grow significantly in the future,manufacturers will need to makeproducts more accessible to a widerrange of consumers, in particularly,older people and men.

CATEGORY: Personal Care

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Many of these ranges carry veteri-narian recommendations and guar-antees, which is adding to theirpopularity. The life stage element ofthese brands also had the addedbenefit of attaining consumer loyalty,as pet owners can now stick with abrand throughout the lifetime of theanimal.

Convenient packaging has been abig hit with pet owners, and an easyway for manufacturers to draw back

some value in the pet food market.Pouch formats drove sales as petowners found the pouch format to bemore convenient, and hygienic - asthere is a not need to store opencans next to normal food, as well asbeing less wasteful.

The pouch appeals to consumerswho want guidance on exact portionsizes, convenience and less messwhen serving. This has increasedavailability of pouch multipacks,

which has led to a big increase in re-tail sales, pushing value up, espe-cially in the premium wet foodcategory.

According to Euromonitor, increasedcity living is leading to lack of spacewhich obviously creates issues forowning larger pets. In Ireland,smaller pets are increasing in popu-larity as they are easier to maintain.The contribution of busy lifestyleshas meant that high maintenance

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CATEGORY: Petcare

There has been a trend of human food trends crossing over to pet food in recent years. Products are nowmarketed using language designed to appeal to owner sensibility as opposed to what the pet may require. Buzzwords like ‘natural ingredients’, ‘low-fat’ and ‘improved dental hygiene’, coupled with products tailored to suit thedifferent life stages of pets have struck a chord with consumers looking for products to cater for their pet’s

various dietary requirements.

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CATEGORY: Petcare

pets are increasingly being replacedwith cats, small mammals and fish.These pets are perceived to be rea-sonably self-sufficient and do notneed as much attention as dogs.

Through the last few years, growthin disposable income for Irish con-sumer’s increased greatly and hasimpacted on the treats segment ofthe Petcare market. More moneymeant more willingness to spoil pets.As a result an abundance of newproducts have come onto the marketfrom niche products such as dentalchews or sticks enriched with cal-cium, and which are in keeping withthe trend of giving pets more nutri-tional foods. This is set to have anegative impact on dietary supple-ments where owners had to admin-ister tablets disguised in food.

Despite these credit crunch times,the pet care market has expandedbeyond food and treats. There is awhole indulgent market offeringeverything from pedicures to luxuryaccessories. Although it is fair to saythe Irish approach to Petcare andnot quite as lavish as it is in the USand even the UK, pet owners are notadverse to spending on their pre-cious pooches.

For some people their pet is an ex-tension of their clothes and acces-

sories and this opens up a wholeworld of spending opportunities. Forinstance, Newbridge Silver haslaunched a collection of dog collarsand leads designed ‘to transformyour cat and dog into the ultimateparty animal’.

The idea of accessorising a pet maymake some people cringe, but theseleads are made with luxury leather,are customised with diamantes andcome in their own doggie bag. ClaireLangan set up her on-line pet bou-tique, mollys.ie in 2006 after holi-daying in the US and seeing howlarge the Petcare market could be,everything from clothing, luxurybeds and carriers, toys, luggagetags, pet pyjamas and even sun-glasses, many of which mollys.ie of-fers on sale. According to Langan,some of the more popular items in-clude tee-shirts and hoodies, per-sonalised dog collars, bathrobes,slippers and pet toys. In her opinion;

“People may pass off the idea of petclothing as frivolous, but it has apractical side. As well as being fash-ion items, clothing can help older orthin coated dogs to stay warm, helpease scratching caused by skin con-ditions, protect body wounds afteroperations and help show coats stayclean.”

Ireland is still slow on the uptakewhen it comes to accessorising theirpets. There are an estimated 365dog boutiques in the UK. The onlinebusiness is picking up in Ireland andthere is a huge potential in the Irishmarket.

In addition, practical solutions areavailable such as bathrobes for aftera bath which saves owners chasingthe dog around the house with atowel. Irish pet owners have had ahistory of poor pet care in the past.However, this has changed to a cul-ture of a pet being an importantmember of the family and not justleft to idleness in the back garden.

Dog sitting and walking are becom-ing are becoming increasingly popu-lar. At the upper end of the markethowever, Irish consumers remain re-strained when it comes to splashingout on pets and small accessoriesare the biggest sellers. Collars andleads are popular gift items and in-terest in pet carriers is picking up.However, despite its popularity inthe US and UK, pet accessories re-main a very niche product categorybut one which big companies like Pu-rina and Mars Masterfoods couldeventually introduce in this countryin the future.

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Consumption of cigarettes is stillvery much in existence, the industryhas undergone radical restructuring;with John Player following the leadof Gallagher’s closing its Dublin plantand moving production to the UK.While initial claims that the work-place ban on smoking had hit themarket badly; this has been revisedduring the subsequent years with in-dustry players insisting the markethas actually grown.

Although smokers are now confinedto outdoors, they continue to lightup and contribute an estimated€1.8bn to the government’s coffersin excise duty. This accounts for80% of the price of a packet of ciga-rettes. In retail terms tobacco isworth over €2bn. Depsite the erad-ication of tobacco advertising andthe introduction of the ban, con-sumption levels have remained rela-tively steady.

According to data, each smokerspends €5,000 a year on ciga-rettes. In addition almost one millionsmokers generated 550,000 shop-ping visits per day. Up to 38% ofsmokers visit their favourite store atleast once a day to buy cigarettes;29% do so every few days; and 12%weekly. Where most regular brandsare not available 52% of smokerswill buy alternative brands; 48% willgo elsewhere to look for the brand.

Up to 90% of purchases by smokersare pre-planned. As well as buyingcigarettes these shoppers are likelyto also purchase, bakery goods, softdrinks, confectionery and newspa-pers. An average of €6 is spent perperson on other goods. This indi-cates that cigarette shoppers pur-chased an additional €3m on otheritems.

According to research, the main rea-son for 70% of smokers visitingstores is to buy cigarettes; papersand magazines represent 8%, foodto go 6%; petrol and diesel 4%;bread and bakery goods 4%; softdrinks 4%; groceries 2%; and others2%.

CATEGORY: Tobacco

The tobacco market continues to be characterised for many by the workplace smoking ban as well as the exclu-sion of advertising and sponsorship. However, despite these realities, smoking in this country remains static. Itsworth considering that to maintain a static position, new smokers must enter the market. Consumption patternshave altered with fewer smokers likely to be heavy or medium users and a trend towards lighter products with 17

cigarettes per day being the average.

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CATEGORY: Tobacco

Cigarette shoppers spend €21.80on petrol/diesel; beers €14.80;phone card top-ups €12.50; ciga-rettes €6.60; lotto €5.20; food togo €4.20; bread/bakery €2.60; tea& coffee; confectionery €2; softdrinks/juices €1.70; papers & mag-azines €1.60; Milk €1.40;crisps/snacks €1.10; and others€4.60.

Smokers' frequent conveniencestores the most when buying ciga-rettes, which represents 56.1%; thisis followed by multiples 4.6%; petrolforecourts 8.9% and others 30.8%.

The number of cigarette seizures hasincreased by 290% from 3,969 in2004 to 15,497 in 2006, repre-senting a substantial 1,300 seizuresa month. A total of 50 million seizedin 2006 could have cost the Excheq-uer as much as €15m. While thereare no definitive figures to showsmuggled cigarettes impact on retailsales, Gallaher’s claim there are 500million cigarettes in lost revenue tostores. This is the equivalent of 25million packets of 20 cigarettes ayear; a loss of 68,000 shopper visitsa day.

The industry itself says it does notencourage anyone to take up thehabit of smoking. In fact it claims anypromotional work or advertising isaimed at getting smokers to switchbrands. The industry is dominatedby three players Gallaher, the makerof Silk Cut and Benson & Hedgeswith 48% market share, followed byJohn Player & Sons at nearly 37%and Carroll’s at nearly 15%.

The overall percentage of cigarettesmoking in Ireland is 23.6%, ac-cording to the Office of Tobacco Con-trol (OTC). A higher percentage ofmen (24.4%) report as smokerscompared to women (22.8%). Theseresults show that a significant de-cline has occurred in smoking ratesamong women during the last twelvemonths to March 2008, whereasthere has not been a significantchange for men.

The largest change occurred among15-24 year olds with a statisticallysignificant decline from 29.5% to23.45% during the twelve months toMarch 2008. The age groups 25-34year olds and 35-44 year olds also

showed a decrease with the remain-ing age groups showing an increasein smoking prevalence.

Smoking prevalence peaks amongthe 25-34 year old age group, withalmost 31% reporting as smokers.Prevalence is lowest among the over65 age group, with one in eightsmokers in this age group.

In terms of social groups, the high-est cigarette smoking prevalencerate is in the C2 category at 28.8%although this group is the only socialclass that has experienced a statisti-cally significant decline in smokingrates since March 2007.

There are four categories of smokersidentified by the OTC including Oc-casional (between one and five ciga-rettes a day); Light (between six andten per day); Regular (betweeneleven and twenty a day); and heavy(twenty-one or more a day).

The majority of smokers (44.9%) in-dicated that they were regular smok-ers. A further 47% of smokersclaimed to be either occasional orlight smokers. Heavy smokers ac-count for the balance.

There has been little movementacross the categories during the lasttwelve months. Close to 50% ofsmokers fall within the combined 25-34 years (26.6%) and 35-44(21.2%) with fewer than 17% of Ire-land’s smokers are aged over 55years old.

In 2007, cigarette smokers spent€12 which is the equivalent to€816,000 in retail sales per day.The combined value of other key cat-egories competing for checkoutspace is €604m compared with cig-arettes to €682m. Other categoriescompeting include confectionery€155m; chewing gum €23m; softdrinks €284m; ice cream €31m;snack food €98m; batteries €14m.

Another interesting fact for conven-ience retailers is how much addedvolume festivals bring to their sales.For example, during the Cork JazzFestival there is increased traffic of40,000 and consumer purchasingincreased by 43%. Equally impres-sive is the Galway Races whichbrought 220,000 extra traffic to the

city increasing sales by 30.2%. TheAll-Ireland Football Final brings80,000 people and generates in-creased sales of 16.5%

Of the top five most popular brands,the Gallaher group distributes threeof them including Silk Cut Purple,Benson & Hedges, and Silk Cut Blue.Over the 12 month period endingMarch 2008, Gallaher had 48.5% ofthe market; John Player & Son34.6% and PJ Carroll 14.9%.(Source Nielsen 30th Nov.)

The roll your own tobacco market isworth €20m with 11% of all smok-ers also smoke roll your own prod-ucts. Interestingly 8% of cigarettesmokers changed to roll you own to-bacco after the phase out of thepacks of ten cigarettes. John Player& Sons has the number one and twobrands, Drum and Golden Virginiawith over 60% of the market. AmberLeaf’s convenience style packaging,competitive prices and the inclusionof 50 cigarette papers make it apopular choice, according to thecompany. Also included in the Galla-her Roll Your Own portfolio are Sam-son, Condor, Mellow Virginia, OldHolborn and Rolled Gold.

In terms of social groups,the highest cigarette

smoking prevalence rate isin the C2 category at28.8% although thisgroup is the only social

class that has experienceda statistically significantdecline in smoking ratessince March 2007.

There are four categoriesof smokers identified by

the OTC includingOccasional (between oneand five cigarettes a day);Light (between six and ten

per day); Regular(between eleven and

twenty a day); and heavy(twenty-one or more

a day).

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Cigars:Ampersand’s latest addition, the Rit-meester range of cigars has un-doubtedly strengthened theirsignificant stake in the tobacco andtobacco accessories sector. In Au-gust this year, Ampersand launchedEurope’s largest selling aromatic fil-ter cigar onto the Irish market, Rit-meester Moods. Ritmeester Moodshas a unique aroma described astropical, mild and vanilla-like. TodayRitmeester offers the Irish cigar

smoker a wide range of fine Dutch ci-gars which includes - Pikeur, Tip,Half Corona, Miniatures and Minia-tures Blue, another new contenderfrom the range.

Also available from Ampersand’scigar range is Agio with the biggestbrand in the Irish tip market, AgioFilter Tip Blue. The Agio range alsoincludes Clair Tip, Sweet Tip andHalf Corona. Ampersand also dis-tribute King Edward Cigars and

dominate the premium cigar marketwith Havana and Dominican hand-made cigars. Brands include Cohiba,Montecristo, Romeo y Julieta, Parta-gas, Balmoral, Don Miguel andDavidoff. Ampersand’s eye-catchingacrylic display cabinet which con-tains a selection of bar-coded tubecigars has significantly increasedconsumer demand and continues tobe a big hit with the trade.

Ampersand have an extensive as-sortment of cigarette papers avail-able within their TobaccoAccessories range. Since the launchin 2006, the Smoking brand ofrolling papers has been a great hitwith the trade and roll-your-own con-sumer. Smoking offers excellentvalue to both retailers and con-sumers with higher margins on offerto the retailer and 20% extra leavesfor the consumer against competingbrands.

In addition to Regular and King sizebooklets Ampersand also offer somespecialist lines such as SmokingHemp, Smoking Eco, Smoking Rolls,Smoking Double Pack, and SmokingMaster. Today the Smoking brand ismarketed in more than 30 countriesworld-wide by Miquel y Costas whocontinue to develop new varieties ofpapers and booklets capable of sat-isfying the most demanding smoker.In more recent times Ampersand hasalso gained the distribution rightsfor Zig-Zag Papers since acquiringthe agency in May 2008. Zig-Zaghas a loyal following in Ireland and isthe No.2 cigarette paper brand inthe UK. All Zig-Zag cigarette papersare made from only the finest ingre-dients and with over 100 years ofcommitment to providing superiorquality, Zig- Zag papers take pride incontinuing to offer their consumersa consistent slow burning smokingexperience.

It appears that the smoking and cig-arette market has settled into a stag-nant position. As smoking hastransported to the great outdoors,all of the government bans haveweeded out any chance of casuallypicking up the habit, making it as dif-ficult and uncomfortable as possible.Despite this, there is still a comfort-able market of smokers who keepthe industry above water and tickingover.

CATEGORY: Tobacco

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Tobacco Accessories:Ampersand have an extensive as-sortment of cigarette papers avail-able within their TobaccoAccessories range. Since the launchin 2006, the Smoking brand ofrolling papers has been a great hitwith the trade and roll-your-own con-sumer. Smoking offers excellentvalue to both retailers and con-sumers with higher margins on offerto the retailer and 20% extra leavesfor the consumer against competingbrands.

In addition to Regular and King sizebooklets Ampersand also offer somespecialist lines such as SmokingHemp, Smoking Eco, Smoking Rolls,Smoking Double Pack, and SmokingMaster. Today the Smoking brand ismarketed in more than 30 countriesworld-wide by Miquel y Costas whocontinue to develop new varieties ofpapers and booklets capable of sat-isfying the most demanding smoker.

In more recent times Ampersand hasalso gained the distribution rightsfor Zig-Zag Papers since acquiringthe agency in May 2008. Zig-Zaghas a loyal following in Ireland and isthe No.2 cigarette paper brand inthe UK. All Zig-Zag cigarette papersare made from only the finest ingre-dients and with over 100 years ofcommitment to providing superiorquality, Zig- Zag papers take pride incontinuing to offer their consumersa consistent slow burning smokingexperience.

CATEGORY: Tobacco

The overall percentage ofcigarette smoking inIreland is 23.6%,

according to the Office ofTobacco Control (OTC). Ahigher percentage of men

(24.4%) report assmokers compared towomen (22.8%).

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The reality is that many consumersfeel that consistently eating morefruit and vegetables should relegatethe need for VMS products. The factis that those functional foods providestrong competition to some supple-ments. A wide range of processedfoods are now available offering for-tification with vitamins, minerals andOmega-3. The involvement of thelargest manufacturers in the devel-opment of these products hashelped to ensure their success.

Purchase decisions for VMS aremainly driven by healthy livingtrends and the market remains stag-nant only growing slightly, as massmerchandisers lower prices andsome consumers forgo supplementsaltogether.

Sales of oral beauty supplements ac-celerated in recent years with an an-nual growth rate of 70% acrossEurope. Although the market forbeauty supplements is still relativelynew here, as the population’s me-dian age increases, the marketshould expand as more consumerspursue beauty enrichment from nu-trients.

The last two years has seen Omega-3 blow up on the food and drinkscene as a significant beneficiaryfood additive. The health benefits as-sociated with these fatty acids havethe potential to reach a wider demo-graphic than other additives.

Practically all growth in the VMSmarket has been in supplements,with vitamins accounting for justover 30% of the market, and miner-als and supplements representingnearly 70%. The VMS market is fore-cast to grow slowly over the next fiveyears. The ageing population willcontinue to benefit VMS productsales since in general consumptionincreases with age.

Manufacturers are increasingly pro-ducing supplements more specifi-cally targeted at age-relatedconditions, such as those affectingthe heart, the brain, the eyes andjoints. The most successful productsin recent years have been Glu-cosamines and Omega-3 fish oils. Inaddition, there is an overall greaterinterest shown in a healthier lifestyleand greater influence among theolder population than ever before.

A challenge for this market has beenthe periodic publication of researchstudies concluding that many ofthose taking VMS products do so un-necessarily. However, there is nodoubt that some groups of peopledo benefit from their consumption.There is no scientific proof that sup-plementing the diet and with extravitamins or minerals is beneficial andthere could be a danger of over con-sumption, according to some stud-ies.

Since 2002, the VMS market hasbeen under threat from the EU’sFood Supplement Directive (FSD)which sets maximum suggesteddaily consumption levels for all VMSformulation and organising manu-facturers to provide data in order togain safety approval for their prod-ucts. Some products already appearon the FSD’s positive list but manyothers are as yet not approved, andwill therefore be not sold after theend of December 2009.

Chemists account for the largest andnow stable share of the sales of VMSproducts but have begun to loseshare to multiples through the years.Seven Seas is by far the largest man-ufacturer of branded VMS productswith a very wide range covering mostsegments.

Multivitamins and fish oils continueto represent the largest segments ofthe VMS market, followed by singlevitamins and Glucosamines. Sales inseveral sectors of the market are de-clining although those of multivita-mins, single vitamins and mineralsappear to have stabilised.

CATEGORY: VMS

Consumers in the 21st century have a strong sense of eating healthily to promote well being. Obesity, diabetes,looking good and the holistic effects of a good diet have all contributed to a discerning interest in food. The ben-efits of eating five or more portions of fruit and vegetables a day is now ingrained in most consumers. Despite

this trend, use of vitamins, minerals and supplements (VMS) have not increased as a result.

The reality is that manyconsumers feel that

consistently eating morefruit and vegetables shouldrelegate the needs for VMS

products.

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CONTENTS

2.........Evolution of the Grocery Sector

10.........Planning in Retail

14.........Lean Machine

18.........Branding in a Recession

THE TEAM:

Managing Director/EditorFrank Madden

Deputy EditorRuth Timmins

ContributorsMargaret CorryCatherine ShortallJulie-Anne DowneyMartin Wright

Business Development ManagersNiall MaddenSarah GriffinPaul Murphy

Production DirectorIrene Comerford

Design90% Proof

Todays Grocery Magazine (TGm)The MewsEden Road UpperDun LaoghaireCo. Dublin

Tel: 01 2809466 (6 lines)

Email:General Enquiries:[email protected]

[email protected]

www.todaysgrocery.com

Small Print & Disclaimer

Small PrintFoodfinder is circulated to all proprietors, directors andmanagers of all relevant manufacturers and distributors,to every cash and carry, every multiple supermarket,group head office and wholesaler, all group affiliatedshops and Londis outlets in addition to over 6,300 unaf-filiated independent retailers and the country’s leadingoff-licence outlets. All articles are copyright of TGMFoodfinder and cannot be reprinted without the writtenpermission of the editor. All letters to the editor of thismagazine will be treated as having been submitted forpublication. The magazine reserves the right to edit andabridge them.

DisclaimerWhile every effort has been taken to ensure that all in-formation is accurate at the time of going to press, nei-ther Fipin Media Ltd or Todays Grocery MagazineFoodfinder accept responsibility for any inaccuracies oromissions. Please note that the opinions expressed inthe articles are strictly those of the authors.

FOOD

22.........Baby

28.........Biscuits & Cake

32.........Bread

36.........Cereal

42.........Confectionery

50.........Dairy - Cheese

52.........Dairy - Milk

56.........Dairy - Spreads

60.........Dairy -Yogurt

64.........Ethnic Foods

66.........Fish

70.........Frozen/Pizza

76.........Fruit/Vegetables

78.........Home Baking

82.........Ice Cream

86.........Meat

88.........Pasta

92.........Preserves

94.........Ready Meals

98.........Rice

100.......Salads & Sauces

104.......Snacks

112.......Soup

116.......Tinned

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TODAY’­S­GROCERY­MAGAZINE­­­­­­­­­­­­­­­­­­­­­­­­­­F

OODFINDER­2009

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