In this months issue

July/August 2009

Consumer breakfast routines in Ireland are changing rapidlyaccording to new research released by Kellogg’s.

2 NEWS

16 DRINKS NEWS

8 BREAKFAST HABITS CHANGING

18 TOP 100 COMPANIES

50 KAVANAGH GROUP FORGES AHEAD

12 HELLO GOODBYE

M.D/Editor: Frank MaddenDeputy Editor: Ruth TimminsBsn. Dev. Managers: Niall P. MaddenContributors: Emma Maguire

Tomas O’BrianCirculation: Margaret CorryDesign: 90% Proof

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

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

TGm looks at 100 of the Top companies in the FMCG market.This information provides an invaluable source of reference forthe trade.

The Kavanagh Group, a family-owned supermarket chain withstores in Ireland and Britain, is buying two new shops inEngland despite “very challenging” conditions for retailers.

Every couple of years ‘hello money’ rears its rather unattractivehead for discussion.

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Greencore, the Irish foodgroup, has received a boostfrom improved consumersentiment in Britain andsaid it expects to report anoperating profit for the yearto September ahead of2008.

The supplier ofsandwiches tosupermarkets, garageforecourts and airlines saidit was on target to meetmarket expectations of16.4 cent in adjustedearnings per share, downfrom 24 cent last year.

“The UK environmentremains challenging,although there has been aslight improvement inconsumer sentiment inrecent months,” it said.

In the UK, sales were up1.8 per cent on a like-for-like basis and Greencoresaid it had reduced costs inits convenience foods unitthere by 20 basis points.

The company said its UKchilled food volumes rose by4.4 per cent over theperiod, while its USconvenience foods divisionrecorded a 43 per centgrowth in underlying salesgrowth year-on-year.

N E W S

ANAPPETITETO ADAPT

A LIDL MORE ACTION

GREENCORE EXPECTS TO INCREASE PROFIT

RIPE FOR INVESTORS

Plans by Sainsbury’s toinvest a further Stg£50m inNorthern Ireland could beset to deliver a major jobsboost for the North.

The British supermarketgiant wants to open asecond store in Derry, andit has confirmed it alsointends to buy one of theCo-operative’s existingstores in Carrickfergus.

The supermarket groupoperates 10 stores in theNorth and will openanother new store in westBelfast next month.

Sainsbury’s, whichemploys more than 2,500people in the North, said ithas not finalised the exactnumber of new jobs thatmay be created as a resultof the new investment.However, it has pledged tooffer the Co-op’s existingworkforce an opportunity tojoin the new Sainsbury’steam in Carrickfergus.

German discounter Lidlis to open in the formerTesco shop in Dundrumshopping centre after itsowner decided to reopenthe centre, which isearmarked for the €60msecond phase of DundrumTown Centre.

Food manufacturingcompany Galmere FreshFoods has reduced staffand introduced cost-cuttingtechniques to combat therecession. A key supplier ofsalads and soups, thecompany employs 49people in Ballybrit, CoGalway, but made one staffmember redundant, laid offfive others and placed 10workers on short-timeworking in February. LeoMolloy, managing director,says in order to fight a 5per cent downturn inbusiness the company’sprocess of distributinggoods into the market wasstreamlined.

In addition, the price ofraw material used tomanufacture products fromfood ingredients topackaging was cut by 5 percent.

“Most of our suppliershave been within thebusiness for the past 10years and they realisesupport by means of pricereductions was a necessaryresponse to the presentclimate.”

However, Molloyremains optimistic aboutthe future because of thesechanges. “Armed with thecost adjustments, a greatdeal of hard work andconsistent exploring ofsales opportunities we havenew contracts in place andothers at advancedstages... we feel confidentwe will come out of therecession on a positivenote.”

They may not be the most exciting ofstock market investment options, butfood and beverage companies areenjoying a “remarkably” good run on theIrish stock market of late, displaying“evidence of their ability to withstand therecession”, according to a new researchreport from Bloxham stockbrokers.

Strong balance sheets, low equityvaluations and recession resilience havehelped food stocks grow their shareprices by 32 per cent since February.

The report finds that the eight Irishagrifood companies listed on the Iseqindex - Aryzta, Fyffes, Glanbia, Greencore,Kerry, Origin, Total Produce and C&C -are in “remarkably good condition giventhe state of the economy.”

Most importantly for dividend-starvedshareholders, Irishfood and beveragestocks are displayingcash flows that givethem the ability to finddividend payouts.

Stocks that paydividends have been thinner on theground since the financial crisis ended theability of banks to pay out.

Peter Coveney

£50MBOOST FOR NI

Richard Corrigan, thecelebrity TV chef hasbranded a reportdismissing the benefits oforganic food as “lazyresearch” by a “bunch ofnine-to-five f**kers”.

An independent reportcommissioned by Britain’sFood Standards Agency(FSA) released recentlyconcluded that eatingorganic food does notprovide any significantnutritional or healthbenefits.

A team of researchers atthe London School ofHygiene and TropicalMedicine reached itsconclusion by reviewing allpapers published over thepast 50 years relating tonutrient content and healthdifferences between thekinds of produce.

Corrigan said he waspuzzled by the decision toexamine the nutrition andhealth benefits of organicfood without taking intoaccount the wider effect ofpesticides and hormones inintensive farming. For thatreason alone, advocatessay, organic is healthier.

“It’s the laziest researchin the world becausenobody ever said that

organic food was morenutritious,” said Corrigan.

The studies underreview showed organic foodhad higher levels of acidityand phosphorous but theresearchers concludedthese results wereirrelevant.

“Why doesn’t the FoodStandards Agency ask howwe can get GM andpesticides and antibioticsout of the food chain?,”said Corrigan.

The report, entitledQuality Low Input Food,was carried out by 31research institutes anduniversities throughoutEurope.

It also showed thatthere was more Omega 3 inorganic dairy products thanthose which were non-organic.

Minister of State forFood and Horticulture,Trevor Sargent, saidrecently that he hadordered a review ofIreland’s organic farmingsector and that theoutcome would beannounced during NationalOrganic Week inSeptember.

About 1% ofagricultural land in Irelandis currently certified asorganic.

July/Aug 2009 3

CONSUMERS CUT BACKConsumers confidence

fell in July, weighted downby fears of job cuts, thepossible short-term effectsof An Bord Snip Nua andthe International MonetaryFund’s bleak warningsabout more trouble in theyears to come.

Confidence slid to 49.5in July from 53.4 in June.That’s almost half theindex’s historical average.

Consumers, sometimesstruggling to pay higher

mortgage, medical andlegal bills, are afraid tospend.

Shoppers who havestayed clear of cars,furniture and otherexpensive items are nowcutting back on food andother essentials, accordingto the latest retail salesfigures.

TENNENTS TO BE SOLDTennents, Scotland’s best-selling lager, is to be put up

for sale by parent company Anheuser-Busch InBev.The beer, developed in 1885 by Hugh Tennent, was the

first to be brewed in Scotland, and has become an integralpart of Scottish culture, but Anheuser-Busch Inbev ispreparing to dispose of the brand as it seeks to pay downdebts.

Tennents produces about 100,000 barrels of lagerannually.

CUT TO SIZE CHEF ROASTS ORGANIC RESEARCHNew research from the

European Commission (EC)has undermined thegovernment’s assertion thatIreland has the highestminimum wage in Europeafter Luxembourg.

Eurostat, the EC’sstatistical office, adjustedIreland’s minimum wage toreflect purchasing powerbased on the cost of livinghere. When measured onthis basis, the Irishminimum wage drops fourplaces to sixth on the table,worth less than that paid inthe UK, France, Belgium,the Netherlands andLuxembourg.

A number ofgovernment ministers haverecently raised thepossibility of reducing theminimum wage. MichaelMartin, the foreign affairsminister, said that Irelandhad the second highestminimum wage in Europeand that its future shouldbe open to discussion.

Eurostat tracked theminimum wage of 20 EUmember states in January2009. When looked at inmonetary terms only,Ireland has the secondhighest, with recipientsbeing paid €1,462 amonth. This compares with€1,642 in Luxembourg,€1,321 in France, and

€1,010 in the UK.When expressed in

purchasing power, the gapbetween the countriesnarrows considerably.Ireland’s minimum wage isreduced to €1,152 permonth, just €2 less thanthat of the UK’s monthlypayment of €1,154. InFrance, the purchasingpower of the minimumwage is €1,189, in Belgiumit’s €1,254, theNetherlands at €1,33 andLuxembourg continues totop the table at €1,413.

Advocates of a reductionin the minimum wage havecited the rapidly-reducedinflation rates here as ajustification, saying that thecost of living has droppeddramatically.

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German discounters Lidland Aldi’s share of thegrocery market has jumpedto 8.5%, its highest ever, asIrish customers begin toshop around. Aldi has seensales growth of 20% in thelast quarter, while Lidl hasachieved growth of 10% inthe same period, according

to market research fromTNS Worldpanel.

New shops and morepromotions have helpeddrive their sales, despitethe fact that the value ofthe grocery market inIreland overall has startedto shrink as prices fall.

The discounters arewinning market share fromall of their rivals. Tesco’smarket share is now25.6%, Dunnes’ is 23.6%,SuperValu’s is 20.5% andSuperquinn is 7%.

More people are visitingeach supermarket to takeadvantage of pricepromotions, and as a result,the average spend percustomer per visit is down.

Cross-border shoppingremains popular but therehas been some declinesince Tesco, in particular,started cutting prices,suggesting its ‘Change forGood’ campaign is havingan effect.

N E W S

BARRY BULLISH

A discount grocerylaunched by Barry’s ofMallow has been instructedby planners to close its firstretail warehouse, but thegroup says it still plans tohave eight stores open byChristmas.

Barry’s opened a14,000 sq ft warehousecalled Buy Lo outsideNewbridge in Co Kildare atthe start of July as achallenge to the Germandiscounters Aldi and Lidl.

The store, half the sizeof a football pitch, is afranchise run by the localTougher family.

Sources say thewarehouse’s planningpermission is forcommercial warehousingand that the council hassaid it needs to go througha new planning applicationto secure retailingpermission.

Barry Group said 4,000shoppers had passedthrough the Buy Lo in thefirst week, “30% aboveexpectations.”

A second Buy Lo storewill open in Tralee, thecompany said, and itintends to have “a Buy Lo inevery county in Ireland” bythe end of 2010.

“With eight storesplanned before Christmasalone, Buy Lo represents amajor new force in the Irishdiscount market,” saiddirector Edwina Lucey in astatement.

The business plan forthe country’s first Irish-owned discount chain is tosell branded goods atdiscount prices.

SHARE LEAPS TO HIGHEST EVER

Eight retailers are beinginvestigated by the Revenueafter they were discoveredselling counterfeit cigarettes.The cigarettes display fakeIrish tax stamps and came tolight after a series of “testpurchases”.

A spokeswoman for theRevenue said the figures ofeight investigations excludedseparate probes into othersmuggled cigarettes inmarkets and by street sellers.

The loss to the exchequeron a standard pack ofcigarettes, retailing at €8.45,is €6.71. So far the largestcache of counterfeit cigarettesfound in one shop has been1,500.

The investigations comeafter customs officers twoweeks ago seized more thaneight million cigarettes in ananti-smuggling operation atDublin Port with an estimatedvalue of €3.5m.

The price of a pack of 20cigarettes is considerablyhigher here than in otherEuropean countries, so Irelandis one of the cigarettesmugglers’ main targets.

Superquinn has claimedan astounding twenty-twotitles at the prestigiousGreat Taste Awards, held inLondon recently. This is themost accolades won by anIrish retailer since theinternationally acclaimedawards began in 1993.Widely acknowledged asthe Oscars of the foodindustry, the awards attractover 4,500 entries annuallyfrom across the UK andIreland. Superquinn tookhome five 3 star goldawards, the highest level ofprize any producer canaspire to.

Irish products awardedthis prize included SQUltimate Chocolate ice-cream produced in Fermoy,Co Cork and SQ Black-currant Preserve which isproduced by a family runbusiness based in Wexford.

“We are delighted tohave won twenty-twoawards at such aprestigious event,particularly since thecompetition is so strongagainst the very best UKand Irish food retailers,”said James Wilson, tradingdirector, Superquinn.

BOGUS TOBACCO GOLD FOR SQ

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The bid to cut rents will affect highstreet shops, retail parks and shoppingcentres and will have seriousrepercussions for private andinstitutional landlords, as well as theNational Asset Management Agency(NAMA).

The response is planned as part ofa co-ordinated backlash to the refusalof many landlords to drop their rents.It is understood that retailers plan tocarry out the action on a scheme-by-scheme basis. It will require co-ordination and agreement between awide range of retailers.

The REI represents members withmore than 8,000 stores around thecountry - about one third of the totalstore numbers in the Republic. Itsmembers range from pharmacy andfashion retailers, to grocers andhardware stores. They includeMcCabe’s Pharmacy Group, Butler’sChocolates, Ecco Footwear, Field’sJewellers and Hughes & Hughesbookshops.

As the recession has deepened, theREI has been lobbying to get rentsreduced and to bring about an end toupward-only rent reviews. However, itsefforts have been resisted by manylandlords, while others have said theywill only renegotiate rents withindividual retailers.

In its latest Retail Industry Review,the REI said that rent cost as apercentage of sales stood at 13 percent during the second quarter of thisyear - up from 9.85 per cent in thesame period last year.

The group said that landlords had,for the most part, continued todemonstrate unwillingness to reducerents, “thus jeopardising the futureexistence of viable businesses”.

“There is a mood among certaintenants for more aggressivenegotiation, particularly withinstitutional and professional landlordswho have demonstrated anunwillingness to work with their retailtenants,” said David Fitzsimons, chiefexecutive of REI.

Fitzsimons welcomed plans forlegislation banning upward-only-rentreviews, but highlighted the fact thatthe new law would not beretrospective.

He said the bulk of landlords hadnot dropped their rents and many REImembers were locked into leases,meaning the new legislation wouldhave no impact on their ability to keeptrading.

According to the REI review,retailers experienced their 16thconsecutive month of declining sales inJune. It predicted that heavily indebtedsectors, such as the pharmacy sector,would experience a large number ofbusiness failures in the comingmonths.

RETAILERS UNITEEmbattled retailers are toughening their stance againstlandlords as they fight to stay in business. A number ofhigh-profile retailers have met under the auspices of

industry body Retail Excellence Ireland (REI), with a viewto reducing their rent payment by at least 25 per cent -

with or without agreement from the landlords.

........rent cost as apercentage of salesstood at 13 per centduring the second

quarter of this year - upfrom 9.85 per cent inthe same period last

year.

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Consumer breakfast routines inIreland are changing rapidly accordingto new research released by Kellogg’sAway From Home, as more people optfor quick and convenient solutions thatdon’t interrupt their busy liefstyles.

The research has shown that thetraditional at-home breakfast occasionis becoming an increasing challenge inIreland, mainly due to early morningstarts and long commutes which leavelittle time for sitting down to a meal. Inresponse, consuming breakfasts on-the-go is significantly increasing with15 per cent of all breakfasts in Europe,including Ireland, eaten away fromhome in 2007. This is expected to

increase by 2012 as consumerscontinue to try to incorporate abreakfast in their day without delayingtheir routine.

One of the most significant trendsemerging in eating away from home is‘desk dining’ as 10 per cent ofbreakfast occasions in Europe weremoved in to the work place in 2007,allowing consumers to multi-task in theoffice. This is expected to risesignificantly.

This trend also provides a solutionto the second most popular reason fornot eating breakfast at home -consumers are increasingly findingthey are less hungry early in the

morning (43 per cent), as time-scarcelifestyles lead consumers to eat mealslate at night once the days tasks arecomplete, and after-dinner snacking.Consuming breakfast at work meansthey can delay their morning meal.

“The results of our study havesignificant implications for thecategory in the Away from Homesector, with more opportunities todiversify what’s on offer to consumersand capitalise on this fast growingtrend,” said Andy Phillips, EuropeanCustomer Marketing Controller atKellogg’s Away From Home.

“Kellogg’s is committed tomonitoring consumer behaviours to

TRADITIONALBREAKFASTHABITSCHANGING

B R E A K F A S T H A B I T S C H A N G I N G

determine how they eat breakfast, inorder to help our customers in Irelandmeet their needs in an increasinglytime-pressured world.

Consumers appreciate the need toeat a balanced breakfast in terms ofnutrition, health and weightmanagement, however it comes downto the time available to do it.

The growth in eating breakfastaway from home brings demand forquick, easy and convenient solutionswhich don’t impinge on consumers’valuable time. The breakfast solutionalso needs to be portable, to meet theneeds of on-the-move lifestyles. Our

new Cereal To Go range is one exampleof how Kellogg’s is putting this insightto use in the market.”

Perfect for cafes without a sit downbreakfast offering and for sandwichshops looking to cash in onconvenience, the Cereal To Go pot fromKellogg’s Away From Home includes aserving of cereal contained in an eye-catching, ready to use bowl tomaximise impact and encourageimpulse purchase. All consumers needto do is add milk or yogurt.

All varieties are a must-stockproduct for impulse and foodserviceoutlets such as offices, coffee bars and

forecourts and present an idealopportunity for Away from Homecustomers to grow incremental sales.

Cereal To Go comes in 30gquantities, the ideal portion size for anutritious and balanced breakfastsolution, in five top selling brands:Special K, Special K Red Berries,Crunchy Nut, Coco Pops ChocoKrispies and Cornflakes.

Here in Ireland, people eat morebreakfast cereal than any othercountry in the world; at 8kg per headannually, that’s 2kg more than the UK,the world’s next biggest cereal eaters.However, despite our love for cereals,Irish people are regularly missingbreakfast altogether.

According to recent researchconducted by Kellogg’s (Kellogg’sConsumption Survey, 2008), one infour Irish people admit that theysimply don’t have time for breakfast,even though the majority of usrecognise the vital role that it plays inhelping us to achieve a healthybalanced diet.

However, foods such as cereals areideally placed to adapt to the moveaway from traditional breakfastroutines as they are convenient andlight to transport and eat and requireminimal preparation, allowingconsumers to multi-task or eat on themove and thereby encouragebreakfast-consumption.

Interestingly, the research alsoshows that men are currently morelikely than women to eat breakfast outof home. suggested reasons for thisinclude the fact that women stilloccupy traditional domestic roles athome, particularly when they havechildren and so they will often sit downas part of their child’s routine to eatbreakfast.

In addition, women are the maingrocery shoppers in most homes and ifthey buy breakfast items on a regularbasis they are more likely to eat them.Finally, females’ health consciousnessremains higher than their malecounterparts, and as such men are lesslikely to pay attention to the positivehealth messages around regularlyconsuming a nutritious breakfast.

However, the data predicts that at-home breakfast occasions for bothmales and females will continue todecline as eating breakfast away fromthe home increases.

(Datamonitor, December 2008))

.......data predictsthat at-home

breakfast occasionswill continue todecline as eating

breakfast away fromthe home increases.

B R E A K F A S T H A B I T S C H A N G I N G

July/Aug 2009 9

10 TGm

A team of Irish scientistshas devised a method ofidentifying individualchickens by puttingminiature barcodes on theirbeaks and legs, and olderhens by their combs.

Working at the UCDBioresources ResearchCentre, the researchersachieved a 97 per cent

accuracy rate inexperiments on identifyingindividual bird parts withbarcodes.

Biometric identificationuses a physicalcharacteristic that is uniqueto an individual such as afingerprint, retina or irisscanning and voiceidentification.

More than 100 new jobshave been created in CoTipperary by Marks &Spencer with the opening ofa store in Clonmel.

The British retailer’s firstoutlet in the southeast is

seen as a commercial coupfor the south Tipperarytown, which expects toattract shoppers fromneighbouring Kilkenny andWaterford.

The store is in the newShowgrounds ShoppingCentre - one of the largestcommercial ventures inMunster - which is expectedto employ 500 people whenit fully opens in October.

The Clonmel shop isMarks & Spencer’s 20thstore in the State since itentered the market here 30years ago. The companyalso operates 20 stores inthe North.

Cigarette prices couldfall if the EuropeanCommission wins its actionagainst Ireland in theEuropean Court of Justice.

The Commission ischallenging Ireland’s rightto set minimum andmaximum prices fortobacco products. The EU’s1995 ManufacturedTobacco tax Directive allowsmanufacturers andimporters of tobaccoproducts to set maximumprices for their products.

But Irish legislation -specifically the 1986Tobacco Products (Controlfor Advertising Sponsorshipand Sales Promotion(No 2)Regulations - bans the saleof cigarettes at less than 3per cent below the averageprice.

Manufacturers andimporters may also notcharge prices more than 3per cent above thataverage, effectively setting amaximum price forcigarettes.

The Irish government

argues that minimum pricesare necessary to protectpublic health by ensuringthat tobacco products arenot excessively cheap, andsays that the directiverefers only to the setting ofmaximum prices, notminimum prices.

The Commission hasasked the court to declarethat, by imposing minimumand maximum retailcigarette prices, Ireland hasbreached its obligationsunder the 1995 directive.

It also complains thatthe Irish government is inbreach of Article 10 of theEC Treaty for failing toprovide information on theIrish legislation, despiterepeated requests to do so.

Similar cases brought bythe Commission againstFrance and Austria will alsobe heard.

The Revenue Commiss-ioners collected €1.17billion in excise duties ontobacco last year, downslightly from €1.19 billionin 2007.

PRICE OF CIGARETTES COULD FALL

UNDERPERFORMING LINESMAY GO

BARCODE ON BEAK

Dunnes Stores couldfollow Tesco’s lead and dropthousands ofunderperforming productsas it seeks to compete withthe British supermarketgiant and the Germandiscounters. The movewould have majorimplications for Irishsuppliers and producers.

The supermarket grouphas begun a review of all ofits grocery categories, withextra space to be allocatedto “proven strong sellers,items on promotion andprivate label products”.

The review by Dunnes isbeing headed up by JohnMcNiffe, the company’soperations director.Reducing the number ofproducts stocked would

have knock-on benefits, byreducing the level ofmerchandising and salessupport that Dunnescurrently requires due to itslack of a central distributionmodel. Higher salesvolumes of fewer productswould also improve itspurchasing power.

100 JOBS ATMARKS & SPENCER

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A lack of diligence has often been this country’s failing. Across all sectors,where thoroughness should most prevail, serious matters are instead

offered subjective and consistently uninformed lip service from a medley ofexperts and ministers tripped up by their own needs. We have witnessed it

from the HSE to transport, pharmacists, or publicans. Retailers arecertainly no exception. Indeed, every couple of years the subject of ‘HelloMoney’ rears its rather unattractive head for discussion. Once again, likethe proverbial bad penny that lingers in the pit of one’s pocket, the

government has gotten stuck on the issue of transparency within the Irishgrocery sector, to the usual mixed reviews. This latest round was spurred

on by the furore over cross border shopping. And once again thegovernment has offered up a somewhat watery solution.

Nothing new there then.

HELLOGOODBYE

H E L L O G O O D B Y E

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The Tánaiste and Minister forTrade, Enterprise & Employment,Mary Coughlan, announced plans tointroduce a new code of practice forthe grocery sector. This code ofpractice for ‘grocery goods andundertakings’ will include theappointment of an ombudsman tomediate on challenges betweenconsumers, retailers and suppliers.Minister Coughlan stated that therelationship between retailer andsupplier had caused concerns in recentmonths.

“We have witnessed recent changesin the Irish grocery goods sector overthe past year resulting in lower pricesand better value for Irish consumers athome. While this is a positive result thegovernment also fully appreciates theneed to ensure that there istransparency and a balance in therelationship between the variousplayers in the grocery goods sector.”

Predictably enough the first criticsof the new proposals was Fine Gael.The party’s agricultural spokespersonMichael Creed stated;

“Since yesterday she has gone froma position that ‘Hello Money’ isn’t anissue since it’s already banned tosaying that she hadn’t any hardevidence of it, to publishing reports toban it. Despite the flip-flop we stilldon’t know if the Tánaiste’s proposedcode would be voluntary or statutory.A voluntary code in the UK has provedineffective.”

The distortion of competitionwithin the grocery sector has neverbeen resolved by the powers that beand there is often a tendency to getbogged down by in-fighting andnitpicking bureaucracy. We alreadyhave the Director of Consumer Affairsand the National Consumer Agency.Does it not stand to reason thatbetween them they could be grantedthe same jurisdiction as anombudsman and save everyone thehassle and expense.

Compare the situation to the UKwhere the Competition Commission(CC) appears to be adept at carryingcomprehensive reports into the retailgrocery sector in the UK. Conversely,there seems to be a genuine will on thepart of UK consumer groups to takesuch issues all the way to the finishingpoint from the collecting of invaluable,genuine information right through to,where necessary, the appropriatepunishment.

Many acknowledge the systematic

bullying of suppliers by some bigretailers. The Irish Small and MediumEnterprises Association’s ceo, MarkFielding said;

“We are aware of several instanceswhere small Irish suppliers have beenapproached and threatened by largeretailers seeking exorbitantpromotional payments to display theirproducts in retail outlets. This form ofhello money has become widespreadand highlights the bullyboy tactics thatthese major retailers will use toincrease their bottom line.”

However, IBEC offered twoopposing statements; one on behalf ofits producer and retailer clients statingthat it welcomed the minister’sproposals as a way of restrictingpractices that could undermine thesupply chain. On the flip side and onbehalf of Retail Ireland the grouprefrained from welcoming theproposals and stated;

“It is important that no obstaclesare put in the way of retailers securingthe best value from their suppliers andin turn delivering the most competitiveprice to consumers.”

Things seem to be carried out alittle less ambiguously in the UK. Forinstance, back in 2007 the UK’s CCconducted a vast investigation intoleading multiples and had the clout tothoroughly investigate rather than justposture about until all is forgotten,which tends to be the Irish position.For instance, officials investigatingclaims at the time that Tesco and Asdahad bullied farmers into cutting priceshad the powers to order thesupermarkets to reveal the contents ofmillions of emails they sent tosuppliers. The investigation involvedexamining innumerable dirty tacticscarried out be these multiples,everything from below cost selling tothe practice of buying up landbanks toprevent competitors entering an area.

The CC served legal notices on bothAsda and Tesco in order to gain accessto emails and other correspondenceswhich in turn allowed the watchdog toinvestigate more thoroughly. TheCommission’s two year investigationfound that the larger supermarketsabuse their power by driving suppliersprices down, reducing investment inquality and new products to thedisadvantage of consumers

In January 2009, the CC launcheda 30 days’ public consultation over itsproposals for a stronger code ofpractice for the grocery trade whichincluded it’s plans for a watchdog topolice the code.

At the beginning of August, theUK’s CC formally recommended thatthe government introduce asupermarket ombudsman. Therecommendation was put to theDepartment of Business, Innovationand Skills and ministers will review theproposal before coming to a decision.The CC also recommended that thenew Grocery Supply Code of Practicewill have to be included in all retailers’contracts with suppliers and willprohibit practices such as retrospectiveadjustments to supply arrangements.After initially failing to get compliancefrom the big four supermarkets toestablish the code voluntarily, the CCwas forced to get the government totake action.

In Ireland, organisations claim thebullying of retailers is widespread. TheTánaiste has said that September isthe deadline for submissions for thenew Consumer and Competition billdue to be published at the end of theyear. It is as yet unclear what powersan ombudsman would have in thiscountry. They may have the power toinvestigate complaints andarrangements but it isn’t clear whetherthese powers will include the moreimportant accessing of internalcompany information. If such powersare included in a more meaty bill,perhaps we can at last bid goodbye to‘Hello Money’. If not, we may resign ouropinions along with hello money oncemore to the pit of our collective pocket.

The distortion ofcompetition within thegrocery sector has neverbeen resolved by thepowers that be and

there is often a tendencyto get bogged down byin-fighting and nitpicking

bureaucracy.

H E L L O G O O D B Y E

16 TGm

D R I N K S N E W S

COOLEY COLLECTS RECORD GOLDCooley Distillery,

Ireland’s only independentIrish whiskey distillery, haswon a record of 10 GoldMedals at the 2009International Wine & SpiritsCompetition (IWSC).

This is the first time thatan Irish whiskey distiller hasmanaged to collect 10IWSC Gold Medals in asingle year. In 2008,Cooley won a then recordnine gold medals.

“2008 was a verysuccessful year for Cooleywinning nine IWSC goldmedals and being crownedWorld Distiller of the Year.However, 2009 is shapingup to be even better,” saidJack Teeling, sales andmarketing director forCooley.

Ireland’s distinctivedrinks brands - from Baileysto Guinness and Jameson -have long been closelyintertwined with ourtourism offering and are anadded bonus in enticingvisitors to these shores.

A large part of businesstourism is the uniqueexperience of a country’sproduce. From wine inFrance to ale in the UK andwhiskey in Ireland, acountry’s distinctive drinksheritage is part of theappeal.

The Irish drinks industryhas a vital role to play inthe country’s tourismsector, according to a newreport released by theDrinks Industry Group ofIreland (DIGI).

The report, which wascompiled by Anthony Foley,senior lecturer and head ofthe economics group atDublin City University (DCU)Business School, says thestrong association betweenIreland and its major drinksbrands, and the facilitiesand services provided bythe drinks industry, are vitalelements of Irish tourism.

The tourism industry isworth almost €6bn to theIrish economy and is one ofIreland’s most importantexport-orientatedindigenous sectors,according to Kieran Tobin,DIGI chairman.

In 2007, Irish exportservices accounted for€3.1bn, whereas tourismgenerated €4.8bn inrevenue from foreignvisitors alone.

“Overseas tourists 7.8million of whom visitedIreland in 2008 - spendover one third of theirexpenditure on food anddrink, with 60pc of themusing pubs for meals. Theimportance of the facilitiesthat the hospitality sectorprovides in terms of food,drink, shelter andentertainment cannot be

underestimated in anassessment of both thetourists’ experience ofIreland and in sustainingjobs,” says Tobin.

“Whether it is one of themany visitor centres such asthe Guinness Storehouse orthe Old Jameson distillery,or the small rural pub thatprovides many facilities thatare crucial to sustainingtourism.

“Our well-known globaldrinks brands such asGuinness, Baileys andJameson also contributegreatly to the awareness ofIreland as a locationassociated with hospitalityand relaxation.”

“While the current pooreconomic outlook will havea knock-on effect on jobs,over 300,000 people wereemployed in tourism-relatedactivities in 2007,” saidAnthony Foley, the report’sauthor.

“The figure will fall thisyear, but tourism remainsone of the majoremployment-generatingsectors in this country andshould contribute stronglyto our economic recovery intime,” he added.

DRINKS INDUSTRY KEY TO TOURISM

Antrim firm Norbev hassecured four new contractsworth €35m with clientsincluding German retailerAldi.

“The contracts are forbottling a range of drinks,including some new juiceand mineral products overthe next four years,” saidDavid Halliday, managingdirector of Norbev.

A contract bottler,Norbev is 90 years inoperation. It employs 75staff at its headquarters inBalymena and produces120 million bottles of softdrinks annually for brandssuch as Britvic, Coca-Cola,Vinto and GlaxoSmithKline

“As well as enabling usto strengthen ourpartnerships with majordevelopers of soft drinks,the contracts are animportant endorsement ofour technical capability andthe strong customer-focusthat underpins our overallbusiness approach,” saidHalliday.

Despite the the contractwins, Halliday said theeconomic downturn had

impacted on the company.“What the recession has

done is brought bestpractice to the fore. Goingback this time last year, wehad to revisit our costbase,” he said. “We are nowhaving to manage our costsa lot tighter than we were inthe past. We are being a bitmore cautious about ourinvestment strategy - weare remodelling it to meetthe demand for the neweconomy and have takenout all the fat.”

Despite shedding jobs,the company is beginningto recruit again.

“The market is toughand we have a long ay togo, but the business is outthere - you just really haveto want it badly enough togo out and get it.

“We are looking toexpand and bring in newlines and new technology.”

Norbev wins deal

18 TGm

T O P 1 0 0 C O M P A N I E S

The word Diageo comes fromthe Latin word for day (dia) and theGreek word for world (geo). Diageo’sroots in Ireland stretch back twocenturies and today it brings Irishbrands such as Guinness andBailey’s Original Irish Cream Liqueurto global markets in 150 countrieswith a turnover which exceeds€10.150bn.

Diageo Ireland is headquarteredin St James’ Gate Brewery in Dublin.Bailey’s Irish Cream is produced inits facility on the Nangor Road inDublin; and its regional sales officesoperate from Kilkenny, Cork,Galway, Limerick, Sligo; and inNorthern Ireland its headquartersare in Belfast. Diageo Irelandemploys thousands of peopledirectly and has exports worthhundreds of millions.

In this country, Diageo Ireland issynonymous with Guinness, itssignature Irish brand. The companyclaims that 10 million glasses of theblack stuff are consumed each dayand it is the world’s number onestout.

Guinness continues to be astrong brand for the group with yearon year sales up 2% for the first sixmonths of the financial year up untilJanuary of 2009. Internationally, its

sales were up 7% during this periodenjoying strong growth in Africa andAsia with sales of 22% and 18%respectively. Like most companieshowever, the famous brand has notescaped some of the fallout of theeconomic downturn. John Kennedy,CEO Diageo Ireland explains;

“Europe is one of the toughestareas to grow for a consumer goodscompany and we have seen someslowdown in markets that weregrowing at an exceptional rate likeRussia. The biggest thing that hashappened more than consumerspending is our customers andwholesalers are very cautious aboutkeeping stock so the traditionalstock levels have gone down. Thewholesaling industry in Spain forexample went through a massivede-stock in December which wasone of the big things that affectedour results. So while there is aconsumer slowdown and we have towatch that, there are some one-offimports from customers managingthe recession.”

However, despite the obviouschallenges of recession time,Diageo is well tuned to its customer;

“We conducted research amongconsumers and the findings thatcame out were people want to turnback to their local community andthe pub is part of that and we willdrive that. Within the pub we arefinding that Guinness and draft beerare popular because of theperceived value of a pint andtherefore we believe everything weare doing to drive Guinness in theon premise is a great opportunity topush.”

He continues;“We are also ramping up the

innovation plan particularly aroundour big brands like Smirnoff in theoff-trade. The trend we are trying toexploit there is the growing interestin cocktails and premixed spiritswhich has been in other markets foryears but is coming into Ireland nowso we are doing work around howwe use the Smirnoff brand in this. So

we are going to play hard at a moreselect range of areas particularlyaround Smirnoff in innovation,Budweiser, Carlsberg andGuinness.”

Baileys Original Irish Cream isanother top brand in its portfolio. Itwas introduced to the world in themid-seventies and was the first Irishcream liqueur in the world. It is thefastest growing of the eight globalpriority brands in the portfolio ofDiageo and it is the world’s eighthlargest international spirit brandaccounting for 70% of the totalcream liqueur category globally.

Budweiser is another familiarname in the Diageo Ireland portfolio.Budweiser is brewed in Kilkenny byDiageo under license from ownerAnheuser-Busch. It has been a firmfavourite with Irish consumers since1986. Its success in Ireland hasmuch to do with its imagethrough quirky humorousadvertising whichcommunicate the beer’squality including the‘Clydesdale’ and ‘King ofBeer’ adverts

Another firm favouritefrom the Diageo Irelandportfolio is Carlsberg. It sbrewed in Dundalk frommalted barley, yeast, hopsand water where it hasbeen brewed and marketedby Diageo Ireland underlicense since 1988.

Globally, Diageo is theworld’s leading premiumdrinks business with animpressive menu ofbeverage brands across thespirit, wine and beercategories. Just some ofthese well known brandnames include; BushmillsIrish Whiskey, Smirnoff,Johnnie WalkerandSterlingVineyardsWines.

Turnover:

€10,150,564,617Net Profit:

€1,971,141,000Description:Brewing/Distilling/Manufacturer ofbeers and spirits

Diageo Ireland,St. James’s GateDublin 8Tel: 01 453 6700CEO / MD: John Kennedy

1

Diageo is a global companytrading in more than 100 countriesacross the globe. The company islisted on both the London and NewYork stock exchange. It employsover 22,000 people with offices inover 80 countries andmanufacturing facilities in Ireland,the UK, Canada, Spain, Italy, Africa,Latin America, Australia, India andthe Caribbean.

Diageo was first established in1997 after the merger of GrandMetand Guinness, and isheadquartered in London. ItsEuropean division accounts for athird of Diageo’s total business.There are five business units inDiageo Europe including Ireland,UK, Continental Europe,Iberia and

Russia. Its topbrands in Europeare SmirnoffVodka in Irelandand the UK;Johnnie Walkerin Germany andRussia; Baileys inthe UK, Spainand Germany;J&B Rare inSpain andFrance;Guinness inIreland and theUK and BlossomHill in Ireland andthe UK.

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 19

20 TGm

DCC markets and distributesleading own and third party brandedfood and beverage products within

growth segments of the Irish foodand drinks market as well as the UKwine market.

Among the key segments withinits portfolio are snack foods. Thegroup markets and distributes KP,Ireland’s leading savoury snackfoodbrand including nuts and popcorn,and many other well-known own and3rd party branded productsthroughout Ireland. Among these isMcCoys crisps and Hula Hoopssnack ranges

DCC is also one of the maindistributors of ground coffee, andwines including the Findlater Wine &Spirit Group under the Robt-Robertsbrand and is also a leading supplierto the off-trade wine market in theUK with its Bottle Green Winebusiness. Robt-Roberts areresponsible for some of the bestknown brands in the countryincluding tea, coffee, snack foods,soft drinks, wine and confectionery.Robt-Roberts distributes acombination of own brands andprincipals’’ brands to all tradesectors including multiple, symbols,cash & carry, independent TSN’s,garage forecourts, and off-licenses.The company is focused on impulseproducts such as snack foods andconfectionery and on growthmarkets such as coffee and wine tothe foodservice markets.

Robt-Roberts has been blendingand packing tea in Dublin since1905 and its range includes a decafand fair trade offering.The companyhas also been roasting coffee since1905 and this continues today at itsfactory in Tallaght. It specialises inpremium coffees that are 100%Arabica. Each pack has a valve atthe back to ensure maximumfreshness. Robt-Roberts is also theexclusive distributor for theRobinsons for Milk range in Ireland

In the healthy food segment,DCC distributes Kelkin, Ireland’spremier health foods company. TheKelkin brand is a well establishedand trusted brand which offersconsumer a healthy choice with

Functional Foods, Organic, GlutenFree, Dairy Free and sugar freeproducts featuring strongly in therange.There are over 80 products inthe range including Multivitamindrinks, Cranberry Juice, AppleJuice, Natural Muesli, MicrowavePopcorn, Honey and sugar-freepreservatives. Some of the brandsrepresented by Kelkin includeJordans Cereals, Phileas Foggsnacks, Hipp Baby Food and StDalfour Spreads.

Turnover:

€5,532,000Net Profit:

€181,700,000Description:Sales & Business Support

DCC HouseBrewery RoadStillorganCo DublinTel: 01 283 1011CEO / MD: Tommy Breen

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T O P 1 0 0 C O M P A N I E S

The Musgrave Group has been asuccess story since 1876 and hasbecome a national and internationalretail giant with a turnover of €4.8bn. Itis the partner to entrepreneurial retailersand foodservice professionals acrossIreland. The group supports well knownretail brands both here and in the UKand Spain including SuperValu, Centra,Daybreak and Day Today in Ireland;Budgens, Londis, Mace and XL Stop &Shop in the UK and SuperValu, Dialprixand Dicost in Spain. It is also well knownin Ireland for its wholesale brandsMusgrave Cash and Carry andMusgrave Foodservices.

Musgrave had a strong set of resultsfor 2008, with retail and wholesale salesincreasing. Group profits were down20% to €75.5 million. Musgrave Groupitself generated sales of €4.8 billion andif you combine turnover of all of theirretail partners across all four marketstogether the company had a turnover of€7. billion, an increase of 6%.

Unsurprisingly, for a group with itsyears of experience, the business modelhas worked extremely well so far.Musgrave’s operates over 240SuperValu stores and over 500 Centrastores in Ireland. In addition, Musgravehas been investing significant resourcesin developing the Centra brand and itscorporate image. This has involvedfocussing the Centra brand around thecore idea of “bright ideas for everydayliving” and has led to a range of newdevelopments including the popular

convenience deli offering “Good to Go”range. Sales at Centra stores increased15% to €1.383bn.

Musgrave has accomplished a greatdeal towards strengthening the Budgensand Londis brands. As with the brandwork in Ireland, this has been aboutestablishing clear points of value anddifferentiation and leveraging

Musgrave’s proven business modeland retailers’ position in localcommunities. The work to date certainlypoints the way for the future, but at thesame time helps Musgrave understandjust how much more is required tocontinue to raise the bar. In the UK, itspriority in recent years has been inramping up IT and logistics to support itsretailers; committing to a five year planof improvement to the supply chain withthe aim of making it the best in the

country. And this was carried out throughsustained investment and by placingretailers at the heart of the programme.

Another important area ofachievement for the retailer has been inthe area of corporate socialresponsibility (CSR). In the Republic ofIreland it became the first indigenousIrish company to win ChambersIreland’s President’s Award for OverallOutstanding Achievement in CSR, andin Northern Ireland it received Businessin the Community’s Company of theYear, both in recognition of ourcontributions to the environment, theworkplace, and the community. It hasalso developed a sustainability agendato support the retailer in the localcommunity with initiatives such aspackaging reduction and recycling.

Turnover:

€4,885,600,000Net Profit:

€70,600,000Description:Wholesale & Retail Distribution

C/O Musgrave LtdBallycurreenAirport RoadCork

Tel: 021 452 2100CEO / MD: Chris Martin

3

Chris Martin ceo

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 21

22 TGm

Kerry Group is a leading brandedconsumer foods processing andmarketing organisation. It is also aleader in global food ingredients andflavours markets. The group hasgrown organically as well as througha series of significant acquisitions inits relatively short history, from itscommissioning of its first dairy andingredients plant in Listowel, Co.Kerry in 1972 to a global player withsales in excess of €4bn.

The group is best known for itsconsumer foods division. Through aseries of acquisition in both brandedand private label sectors, KerryFoods’ brands are leadinghousehold names in both the Irishand UK markets including categorybrands such as Denny, Dawn,Ballyfree, Low Low, Kerry Spring aswell as Cheesestrings and Walls.

Kerry Foods is also a majorsupplier of added-value chilled foodsand it has top positions in most of itsmarkets and has developed a wellbalanced business supplyingsupermarket private label. Its majormarkets are chilled conveniencefoods. The division supplies both itsown leading brands and privatelabel products to major retailers.Kerry Foods has fine tuned itsinnovation capturing key snackingand convenience food trends with its

brands.The Denny range of meats is one

of its top Irish brands and continuesto innovate to suit changing markettrends. For instance, consumerusage of rashers has developedoutside the more traditional fry orgrill usage and they are now part ofgeneral snacking patterns. Thisincludes usage in BLT’s, pizzas orpasta dishes. Kerry has made itsrashers more convenient to suitthese trends through theintroduction of its microwaveablelines under its Denny and Wallslines. In addition, Kerry’s chilled juiceand smoothies are enjoying a majorgrowth in Ireland and its Dawn brandholds a leading position.

The general increase inpenetration of butter and butterspreads in Ireland can be explainedprincipally by the introduction of arange of both spreadable andhealthy products which are low in fatand salt.This has encouraged manyconsumers who want a healthyconvenient option to put butter backon the kitchen table. The buttermarket is enjoying higher levels ofmarket penetration. This increase is

also related to the success of somewell established butter brands;however it also demonstrates thateven with a strong marketingcampaign there are always ways toimprove growth.

Since the 1970’s Kerry Foodshas been to the fore in developinghigh quality dairy and low fatspreads at the group’s flagship plantin Listowel plant. It enjoys leadingpositions with its brands including,Low Low, Kerrymaid, Golden Olive,EasiGold and Golden Olive to namea few.

There is a particularly lowconsumption of cheese in Irelandcompared with other Europeancountries. Ominously, consumerresearch highlights a decline inconsumption levels in recent yearswhile global cheese consumptionsoars.

However, within the sector itself,there is a growing demand for non-cheddar varieties and specialitycheeses. Cheese snacks have alsobeen a growth segment for sometime, driven by an increasingdemand for lunchbox products in thegrowing snacking trend.

Turnover:

€4,787,766,000Net Profit:

€246,118,000Description:Food processing

Prince’s StreetTraleeCo. Kerry

Tel: 066 718 2000CEO / MD: Stan McCarthy

4

Stan McCarthy

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 23

Kerry has also developed itscheese and cheese snack portfoliofollowing its acquisition of GoldenVale. The range includes cheddarcheese blocks, sliced packs,savoury cheese spreads andscheese snacks marketed under theCharleville, Easi Singles, GoldenVale and Cheesestrings brands.

Kerry Foods was launched as apublic company in 1986 and it islisted on both the Irish and UK stockmarkets. The group has developedas one of the largest and technicallyadvanced manufacturers ofspeciality ingredients in the world.Kerry Ingredients incorporates coretechnologies and global resourcesin speciality ingredients, seasoningsystems, sweet ingredients,nutritional systems and specialityproteins provides innovative,practical product solutions to food.

Developing the nutrition area isan obvious focus for growth.Nutrition is a consumer trend drivenby growing awareness of the linkbetween diet and health. Trendsshow consumers are now seekingadditional nutritional benefits fromthe food they eat, leading to ademand for fortified foods (i.e.mineral or vitamin enriched), dietarysupplements, sports drinks and barsetc. Obviously, milk is an idealsource of proteins and minerals andthe dairy component of theinternational nutrition market isestimated to be worth about $15billion annually and is growingrapidly.

Kerry Group supplies over10,000 food, food ingredients andflavour products to customers inmore than 140 countries. The grouphas manufacturing facilities in 19countries as well as sales offices in20 countries worldwide.

The group’s headquarters are inTralee, Co. Kerry, it employs 20,000people throughout itsmanufacturing, sales and technicalcentres across Europe, NorthAmerica, South America, Australia,New Zealand and Asian markets.

Dunnes Stores is an icon of Irishretailing and a powerful marketingforce. One of the few Irish-ownedretailers, the guiding principles ofthis company has always been good

quality and competitive prices.Dunnes combines grocery, textilesand homeware at 151 stores andemploys 18,000 people.

Dunnes has a 24% share of theIrish grocery market, placing itsecond only to Tesco. The companyhas elements of great businesswhich it is constantly tweaking butnever straying too far from itsformula.

Dunnes has seen the value inmoving into non-food areas, asidefrom homeware and textiles with theintroduction of CDs, DVDs andmarketing one-off promotionaloffers. In addition, the chain hasadopted a highly successful M&Sapproach to marketing by invitingcelebrities to introduce new lines atits stores.

A host of high profile names suchas Paul Costelloe and Twiggy havebeen recruited in recent years togive a sharper edge to its clothingand homeware offerings.

Turnover:

€4,300,000Net Profit:

€n/aDescription:Retailing

46-50 South Great Georges StreetDublin 2

Tel: 01 4751111CEO / MD: Margaret Heffernan

5

T O P 1 0 0 C O M P A N I E S

24 TGm

Dunnes has always beenattuned to new trends and respondsquickly to what consumers want.Take a browse through any of itsstores and this quickly becomesevident. So successful has itshomeware department been, thecompany has opened a number ofupmarket and standalonehomeware stores.

In recent years it has seenstores open throughout the countryincluding its 45,000 sq ft outlet inEnniscorthy, Co.Wexford, as well asthose at Edenderry, Mallow,Letterkenny, Leopardstown, Cork

and Portlaoise and a standalonehomeware store in Carlow.

The St Bernard brand wasfounded in 1956 and it is a symbolfor value in Irish retailing. Thecompany operates from 111 storesin the Republic; 24 stores inNorthern Ireland; seven in England;4 in Scotland and 5 in Spain.

The first store in NorthernIreland opened in 1971 and thisexpansion continued at a fast pace.Its first foray outside of Ireland wasin Spain on the Costa del Sol in1980. In the UK the company hasexpanded with textile stores onlyand it purchased its first Scottishoutlet in 2000, a second inGlenrothes in 2002, a third inClydebank in 2004 and a fourth inParkhead.

The company is run by a boardof directors including managingdirector Frank Dunne, director oftextiles, Margaret Dunne andAndrew Street chief operatingofficer. Dunnes Stores has keptthings in the family and a new

generation of Dunne off-spring iswaiting in the wings to shine.

Insiders say Anne Heffernan,Margaret’s daughter is the nextleading light in the company. Anneis a doctor by training but changedpath and joined Dunnes in 2000 andnow works on store development onthe grocery side of the business.She is apparently well liked andtakes an innovative approach to thebusiness. Frank Dunne’s childrenare not involved in the business.Then there’s Michael Heffernan,Anne’s brother who has beeninvolved in the business most of his

life. However a more likely rival toAnne Heffernan is her cousinSharon McMahon, daughter of lateElizabeth McMahon. Sharon is aqualified solicitor who also works inthe business. It is believed that all ofthese family members will featureprominently in the company’sdecision making in the future.

Dunnes Stores (Bangor), theholding company for the retailer’soperations in the North and Britain,paid its shareholders a dividend of€33.6m back in 2006. This was thefirst time the owners had taken asizeable dividend from the Co. Downcompany. Dunnes Stores (Bangor)is the only significant company inthe group which publishes itsfinancial information.

Dunnes Stores is a companywhich knows its market well andgets on with it as outlined by AndrewStreet, the company’s chiefoperating officer;

“We look forward to developingour store numbers and creatingfurther employment into 2010.”

Multiple retailing and Tesco aresynonymous with one another. Infact it has only taken a decade forTesco Ireland to reach almost iconicstatus in Ireland. When Tescomakes a seemingly bold new move,the rest of the multiple sectoreventually follows suit. It is fair to saythe multiple has an uncannyforesight into what consumers wantand this has been bestdemonstrated by its expansions intosuccessive non-food lines and petrolretailing to name a few.

Tesco Ireland was founded in1997 following the acquisition byTesco plc of the Irish retailingoperations of Associated BritishFoods plc; namely PowersSupermarkets and its subsidiaries.Today the group is Ireland’s largestfood retailer operating 135 multi-format stores nationwide andemploying 13,500 people. Its shareof the grocery retailing market is asizeable 25.% with turnover of€2.9bn, 32% of which is accountedfor by its own brand portfolio ofproducts. Over €500m has beenspent in the business over the lastfive years mainly in the developmentof new and replacement stores,modern IT systems and logistical

Turnover:

€2,995,000,000Net Profit:

€n/aDescription:Supermarket Retail

Gresham HouseMarine RoadDun LaoghaireCo. Dublin

Tel: 01 280 8441CEO / MD: Tony Keohane

6

5

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 25

developments.Tesco operates supermarkets

under the ‘Tesco Ireland’ brand aswell as retail formats under theTesco Ireland Local, Tesco Expressand Tesco Metro brands. TescoMetro stores are sized betweenstandard Tesco stores and the TescoExpress format is mostly located intown and city centres. These storesare largely convenience storesmainly stocking food with anemphasis on higher marginproducts alongside everydayessentials. In addition 29 Tescostores across the country operateon a 24-hour basis.

Consumers are familiar withTesco’s own brand offerings and thecompany now offers a ‘good, betterand best’ policy for its product

categories. This now encompassesseveral product categories such asfood, beverages and some non-foodlines. On-line grocery shopping wasfirst introduced in 2000 with over17,000 registered customers

Chief executive Tony Keohaneappointed to the job in February2006 said it best when he describedthe focus on the customer as beingmore ingrained in the DNA of Tescothan most others; “there is less thathappens by chance”, he onceshrewdly commented. And right hewas too. In 2006, for example,someone in the echelons of Tescosat up and noticed a certain patterntaking place in the highly lucrativeIrish petrol forecourt sector.

Tesco first stepped into thismarket in Ireland in 2003, having

taken the plungeelsewhere and inthe UK back in1974. The groupnow operates 15petrol stationsalongside itss u p e r m a r ke t sincluding amongothers those inFinglas, Wexford,Dundrum,Killarney,Maynooth.

The Tescoretail concept isnow bigger thanfood; it’s a one-stop-shop andthis exploration ofnon-food lines isin constant deve -lopment. Thesimple fact is thatnon-food lineslike toiletries, dra-pery or fashionhave larger profitmargins thangrocery lines.This is furtheremphasisedwhen sold bys u p e r m a r k e tchains in large,

low-rent out-of-town premises. Itwas reported last year that in the UKTesco accounts for every pound ofevery 8 spent on anything. Thedominance of supermarkets of non-food lines is being felt by moretraditional players. For example,Tesco’s successful clothing line theCherokee and Florence & Fred linesare among the fastest growingclothing ranges on the high street.

Tesco’s rise to a 25% marketlead has been well-documented.From the introduction of non-foodlines, to breaking in to the petrolforecourt market and operating 24-hour stores, the chain has taken abreak-neck approach to innovation.Long may it last.

Tony Keohane

T O P 1 0 0 C O M P A N I E S

26 TGm

Topaz Energy Ltd is Ireland’sleading energy and forecourtretailer. Since 2005, Topaz hassuccessfully acquired the retail andcommercial fuels operations of bothShell and Statoil in Ireland. TopazEnergy is now the largest Fuelsdistribution business in Ireland andone of the country’s largest privatelyowned companies.

Topaz Fuel is involved in allaspects of the Irish oil businessincluding retail, commercial fuels,lubricants and home heating oil.Thecompany has significant interests inthe storage and distribution of oilproducts and owns the worldwiderights for the Fareplay Conveniencebrand, the number one forecourtretailing brand in Ireland.

Topaz Energy acts as a licenseeof the Shell and Statoil brands inIreland. Building on the heritage of100 years in Ireland, the groupcombines innovation and growthwith customer service and aims tobecome the leading oil company inIreland.

Topaz operates a network ofapproximately 350 petrol fillingstations across Ireland. It is themaster distributor for Shell lubricantsin Ireland and it supplies thecomplete range of Shell products.

The group also offers a range offuel card services with the Topazfuel card and Statoil fuel cards,tailored to suit individual businessneeds. It also offers the StatoilRoutex fuel card for customersbuying fuel in the UK, and on theContinent and this currently includes17,000 sites in 34 countries.

Topaz is also the leadingterminal operator in the country andowns and operates a number of oilimport and storage facilities inDublin (2), Cork, Galway (2),Limerick, Derry and Greencore.

The Topaz network is furtherenhanced by a web of Authorised

Distributors who operate 64 depotsacross the country, fed by largearticulated road tankers.

The group sells its productsthrough a network of 145 Shellbranded retail service stationsacross 32 counties. Of these 45 aredirectly owned and operated byTopaz and 105 are independentlyowned and operated.

Many of Topaz stations areopened 24-hours and also provideconvenience retailing – the answerto today’s fast-paced lifestyle byproviding the convenience of one-stop shopping.

Turnover:

€2,465,611,000Net Profit:

€39,041,000Description:Fuel/Convenience retailer

Topaz HouseBeech HillClonskeaghDublin 4

Tel: 01 202 8888CEO / MD: Eddie O’Brien

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Eddie O’Brien

T O P 1 0 0 C O M P A N I E S

Glanbia is not just an indigenousIrish success it is a global consumerfoods triumph. Over the last fewyears, it has reached out to newmarkets expressing an impressiveeye for innovation while retaining itscore product values. No mean featconsidering it was first formed as aresult of the merger betweenAvonmore and Waterford dairy co-operatives. The group now boasts aturnover of €2.2bn and enjoysleading positions in key dairymarkets such as milk, cheese, freshdairy products and fresh soups andsauces.

The group’s principal activitiesare carried out through threedivisions, food ingredients,consumer foods and agri-business.Under its food ingredients division itprocesses a range of cheese, andwhey protein ingredients. Thedivision also supplies the globalnutrition industry with a wide rangeof solutions designed to addressspecific health and wellnessbenefits. The consumer foods itprovides are liquid milk, chilled foodsand pork processing as well asmozzarella cheese. This divisionalso supplies branded and value-added liquid milk, fresh dairycheeses, soups and spreads to theretail market. Among the group bestknown brands are Avonmore,

Yoplait, Everybody, Snowcream andPremier Milk.

Glanbia is based primarily inIreland, UK and USA and servesmarkets for dairy and meat productsacross the world. In total the groupemploys 4,000 people in Ireland, theUK and the US. Quoted on theDublin and London StockExchanges; the Group is rankedamong Europe’s largest dairycompanies and is one of the world’slargest cheese manufacturers. Itholds strategic positions in the UScheese and European pizza cheesesectors.

The dairy market is a constantlyshifting one, where trends must becreated as well as catered to or theconsumer will simply move on. Twoof the most important segments ofthe dairy market are health andindulgence with a focus onconvenience thrown in for goodmeasure. For instance, theincreasing trend towardsconvenience food and snacking on-the-go has probably encouragedmany consumers to switchcategories and purchase yogurtdrinks instead of the traditional potof yogurt because they are moreeasily consumed when pressed for

time in the morning or throughoutthe course of the day. Hence,manufacturers face a challenge inencouraging increased consumptionunless the product is made moreaccessible for out of home usage.

For Glanbia, an obvious focus forgrowth is developing the nutritionarea. Nutrition is a consumer trenddriven by growing awareness of thelink between diet and health.

Trends show consumers are nowseeking additional nutritionalbenefits from the food they eat,leading to a demand for fortifiedfoods (i.e. mineral or vitaminenriched), dietary supplements,sports drinks and bars etc.Obviously, milk is an ideal source ofproteins and minerals and the dairycomponent of the internationalnutrition market is estimated to beworth about billions annually and isgrowing rapidly.

Whey, a bi-product of cheese isthe basis of many protein drinks andnutrition bars that are a rapidlygrowing part of the food businessand Glanbia wants to participate inthese on a larger scale. It is used ina range of health products,nutritional supplements andfunctional foods – those that are

Turnover:

€2,206,567,000Net Profit:

€60,240,000Description:Cheese/Nutritional ingredients

Glanbia HouseKilkenny

Tel: 056 777 2200CEO / MD: John Moloney

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John Maloney

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 27

28 TGm

promoted as providing a healthbenefit beyond basic nutrition.

Glanbia is active in advancedtechnology nutrition products suchas wpi, milk minerals, andlactoferrin. The Group is also activein formulated milk powders, servingmarkets where dietary, supply chainor economic needs drive demand.Moreover, it is the second largestsupplier in this global market whichis growing extremely rapidly.

Innovation is integral to Glanbia’ssuccess abroad. In October 2006, itopened one of the largest cheeseplants in the world. The plant,located in New Mexico propelled thegroup into the big leagues as thelargest producer of cheddar cheesein the United States. Glanbiaoperates the plant and markets theproduct while its joint venturepartners, Greater SouthwestAgency provides the milk supply.New Mexico is the fastest growingmilk production region in the US andSouthwest Cheese chairman MikeMcCloskey said this growth hadgenerated a desire for partnershipwith a major food producer.

Glanbia’s expansion plans arenot limited to the US. In 2007 itopened a manufacturing plant inShanghai in China to producespecialist ingredients for customers.The plant in Shanghai focuses onwhey-based nutritional products.The office generates sales of about€12m a year.

The group’s ability to diversifyand expand its portfolio beyondbasic dairy to consumer foods,ingredients and agri-business iswhat makes Glanbia one of thegreat Irish success stories of thiscentury.

Fyffes is the oldest fruit brand inthe world and is most easilyidentified with the banana although italso markets Fyffes GoldPineapples and Fyffes Melons.Bananas are one of the mostpopular fruits and in Europe they areone of the biggest selling items insupermarkets. This has much to dowith the fact that the bananacontains just 95 calories, has little fatand has one of the best, mostnatural and biodegradablewrapping.

Fyffes is one of the largestimporters and distributors in Europewith a turnover of €500m and aninfrastructure that reaches acrossthe globe. The group is a true globalplayer operating in a considerablyfragmented industry.

Fyffes is primarily involved in theproduction, procurement, shipping,ripening, distribution and marketingof bananas, pineapple and melons.It currently markets fruit in Europeand the US under the Fyffes,Turbara and Nolem brands.

Although Fyffes enjoys a prolificposition in the global fruit business,the market has faced volatility on alarge scale which has taken its tollon all players. In the last two years,

the industry has had to contend withexchange rates, spiralling rawmaterial prices as well as Bananaimport regulations implemented in2006.

In March, Fyffes stated that itsprofits were in line with expectationsgiven a changed environment duelargely to new EU importingregulations. The group’s statutorypre-tax profit declined to €38m from€105.8m in 2005. However, grouprevenue from continuing operationsrose €406m from €386m.

The adjusted EBIT (operatingprofit, before exceptional items,amortisation, interest and taxincluding the equivalent share ofjoint ventures operating profit) forFyffes continuing operationsdropped to €19m in 2006 from€79m the previous year. Thisreflects in particular the changes inEU import regulations which costFyffes €40.9m in the year mainlydue to the significant increases inimport duty.

Analysts say a strong balancesheet holds the key to thecompany’s future. The fruit groupplans to double in size over the nextfive years. At the end of 2006, Fyffesreported net funds of €80m placingit in a more optimistic position tomake acquisitions than most of itscompetitors. Analysts also believethere is significant potential forsynergies in relation to theacquisition of a rival banana group.

The growth in revenue reflectsthe impact of the acquisitions ofBrazilian melon producer Nolem inJanuary 2006 and the full yearimpact of the acquisition of Turbanain North America in the final quarterof 2005. In addition, Fyffes grew itsbanana volumes by 6% and itspineapple volumes by 25% during2006.

A number of key restructuringprogrammes have taken place atFyffes. In April 2006, Fyffes outlineddetails of a property company it hadspun out of the group and listedseparately. The property is

Turnover:

€2,150,621,000Net Profit:

€24,179,000Description:Wholesaler fruit and vegetables

Total Produce (Fyffes)Charles McCann BuildingRampart RoadDundalkCo. Louth

Tel: 042 933 5451CEO / MD: Rory Byrne

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T O P 1 0 0 C O M P A N I E S

July/Aug 2009 29

Blackrock International Land andinitially traded with 30 propertieswith a combined gross asset valueof €207m.

The following September, thegroup announced a demerger of itsgeneral produce and distributionbusiness into a separately quotedcompany. Fyffes current operationscomprise broadly two distinctbusinesses; its tropical fruit businessand its general produce business.The general produce division is thelarger of the two businesses andhas sales of an estimated €2bnwhich compared to €500m withintropical produce.

The tropical fruit business isconsidered highly capitalised with€200m in cash and other liquidassets including a 40% stake inBlackrock International Land. Thegroup’s chairman, Carl McCanncommented that this would make it‘very much able to play strongly inthe arena of the big deal’. Hereferred the general producedivision as ‘stable, steady business’.

He added that the generalproduce firm, which will be listed onthe Dublin stock exchange, couldprobably spend up to €30m onacquisitions each year and thusmaintain a double-digit growth rate.The underlying general produceoperations are growing by 4% peryear.

McCann said the decision todemerge the general producedivision had been prompted, in part,by the success of the Blackrockinitiative. Fyffes shareholders getone share in the new entity for eachshare they own in the existing group.

McCann handed over thechairmanship of Fyffes to his brotherDavid after the demerger to becomechairman of the new company. Thisrestructuring of the business hasbeen generally well received in thetrade however; obviously suchconsolidation has brought thepossibility of acquisition into theequation.

The Irish Dairy Board (IDB) is thebiggest international exporter ofIrish dairy products, servicing theneeds and quality demands ofcustomers world-wide. It was formedin 1961 and has grown in responseto the changing European andglobal business environment.Today,it is one of the country’s mainexporters and a major fooddistribution company with annualsales of €1.8bn.

The IDB owns the well knownKerrygold brand. Kerrygold dairyproducts include; Kerrygold PureIrish Butter, Kerrygold SpreadablePure Irish Butter, Kerrygold DublinerIrish Cheese, Kerrygold ProcessedCheese Spread, Kerrygold IrishCheddar Cheese and KerrygoldCream for Coffee. Its productportfolio is divided into three keysectors including; retail business,food ingredients and commoditytraining. The Irish based marketingand sales staff is supported in theiroverseas operation by local agentsand distributors, sales offices andsubsidiary companies. Groupsubsidiaries in Europe and the USmarket a wide selection ofspecialised cheeses, cooked meats,fish and delicatessen products ofboth Irish and non-Irish origin.

The IDB operates and trades in

Turnover:

€2,090,000Net Profit:

€24,300,000Description:Export of Diary Products

Grattan HouseMount Street LowerDublin 2

Tel: 01 661 9599CEO / MD: Sean Brady

10

T O P 1 0 0 C O M P A N I E S

30 TGm

a variety of markets across theglobe. However, its main focus isincreasing sales within the EUthrough improved distribution andmarketing structures. The IDB’smain products include cheeses,butterfats, whey products, powdersand casein & caseinates.

Its Kerrygold range include,butter, cheese and cream products.Kerrygold Pure Irish Butter is asalted sweet cream butter with asmooth rich taste. Its naturally softtexture and wholesome purity are allderived from the full cream that iskey among Kerrygold’s brands.

Kerrygold Spreadable Pure Irishbutter is 100% pure Irish buttermade with only the finest quality milkfrom cows grazing on lush greenpastures. This yields a cream withnaturally softer fat which whendouble churned, makes KerrygoldSpreadable even softer and easierto spread.

Kerrygold Dubliner Irish Cheeseis a unique cheese type with a

distinctive rounded flavour, achievedby combining a secret recipe andthe skills of the Kerrygold mastercheese maker. The cheese istypically matured over 12-monthsduring which time it is checked byexperienced cheese graders toensure that it has a consistently highflavour profile. Dubliner is a versatilecheese suitable for vegetarians, thatcan be used on a cheese board, insandwiches and in a range ofrecipes. Dubliner is particularlydelicious as an aperitif cheeseserved cut into cubes or slices.

In the cream sector, the IDB hasKerrygold Cream for Coffee. Madefrom pure Irish single cream,Kerrygold Cream for coffee is aunique ‘ultra heat treated’ topreserve freshness and extendedproduct life. The brand is an idealcompliment to a coffee. Available asten connected ‘snap-off portions’with sealed printed foil lids, eachportion contains 10ml.

IAWS Group plc is aninternational food and agribusinessgroup. The group has lifestyle foodoperations in Ireland, the UK,France, the US and Canadaservicing over 50,000 customers.This lifestyle food business focuseson niche high quality growthsegments of the bakery andconvenience food markets.

The group has its origins in theIrish agricultural industry andcontinues to maintain a leadershipposition in Ireland and the UK inareas of animal feed, fertilizer andmarine protein. IAWS Group isquoted on the Dublin and LondonStock Exchanges and has beenpublicly quoted since 1988. Withinthe lifestyle food division, the Groupcomprises a number of well knownbrands including Cuisine de France,Delice de France, Pierre’s andCarroll Cuisine.

Cuisine de France offersconsumers traditional French-stylebreads and pastries and also has awide variety of continental-stylebreads, confectionery and hotsavoury items. Cuisine de Franceprovides a complete bake-offsolution primarily to the retailindustry, as well as staff training and

Turnover:

€1,907,619,000Net Profit:

€123,473,000Description:Manufacturer food products

151 Thomas StreetDublin 8

Tel: 01 612 1200CEO / MD: Owen Killian

11IAWS Group Ltd.

10

T O P 1 0 0 C O M P A N I E S

category management to enable thetimely delivery of ready-to-bakeproducts.

Delice de France supplies highquality breads, viennoiserie, savouryand confectionery products primarilyto the foodservice and cateringindustry. The business iscomplimentary to that of Cuisine deFrance and operates with a similarproduct mix in a separate sector ofthe market.

Pierre’s provides a hot foodsolution to the retail and foodservicemarkets in Ireland. It supplies aversatile range of products for allchannels and eating occasions.There is a unique productdevelopment programme for eachbusiness channel and a dedicatedtraining programme. Pierre’s is anestablished market leading brand inthe hot food sector.

Carroll Cuisine is one of theleading suppliers of chilled hams,sandwich fillings, ready meals andspeciality products to both the retailand foodservice markets in Ireland.Carroll Cuisine has a widespreadand experienced sales team tosupport category management,training and product knowledgethroughput the country.

Kellogg Company ofIreland has been trading since1980 and the Kellogg brandhas been successful amongIrish consumers largely due toa dedicated team of 40employees covering sales,marketing and administration.Ireland is a core market forKellogg’s enjoying anestimated 60% of overallbreakfast cereal sales.

The Irish business is oneof Kellogg’s strongestperformers, having asignificant establishedbusinesses and its per capitaconsumption of ready-to-eatcereals being the highest inthe world. Its main brandsinclude Kellogg’s Corn Flakes;Rice Crispies; Pop Tarts; CocoPops and Nutri-Grain.

Kellogg Europeestablished its Europeanheadquarters in Swords, Co.Dublin in 2005. Europeaccounts for 20% of thegroup’s €7.4bn sales. Theheadquarters hasresponsibility for supportingEuropean functions such assupply chain, finance,treasury as well as sales

development and HR among others.Founded in 1906, Kellogg’s has

grown to become the leadingproducer of breakfast cereals andgrain based convenience foodproducts. Its brands aremanufactured in 17 countries andmarketed in 180 around the world,generating annual revenue inexcess of €19bn. The companycurrently employs 25,000 peopleworldwide.

Turnover:

€1,465,140,000Net Profit:

€31,380,000Description:Cereal Product Sales

7 St Johns CourtSantryDublin 9

Tel: 01 842 9100CEO / MD: Jim McNeill

12

Owen Killian

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 31

32 TGm

The Greencore Group is one ofIreland’s leading manufacturers ofconvenience foods. Its products aresupplied to major retailers, foodservice and manufacturingcustomers within the EuropeanUnion.

Greencore Convenience Foodscategories are major players withinone of the fastest growing sectors ofthe food market. The group hasfocused on specific areas such aschilled foods and sandwiches andhas become the world’s largestmanufacturer of the latter category.The group also offers a uniquenationwide chilled delivery servicewhich supplies the petrol forecourtand convenience sector. All of itsbusinesses hold a significant shareof their markets.

The group also produces pizza,sandwiches and chilled sauces inthe Netherlands where it is marketleader. Greencore is the UK’sleading supplier of customer brandmineral water and a major producerof bottled recipe products such ascooking sauces. Its contemporarybakeries dominate the market incelebration and Christmas cakes,non-dairy desserts and Yorkshirepuddings.

Greencore Categories areleading producers of convenience

foods and are customer own-brandspecialists. Its customers includeretailers, food service providers,manufacturers, petrol forecourts andairlines in both the UK andContinental Europe. With 20manufacturing sites and 7,000employees, the group is a significantplayer in a number of key growthmarkets.

Greencore Sandwiches is theUK’s largest sandwich manufacturer.The business comprises two state-of-the-art manufacturing facilities inthe UK. Greencore Prepared Foodsproduces a wide range of chilledquiche and savoury flans as well asready meals and meat spreads.Greencore Chilled Meals is aninnovative supplier of ready meals,with particular strength in Italian andhealthy eating meals. It is also a keyplayer in the emerging ready-to-cook sector with its productsreceiving a number of prestigiousawards.

The Greencore Chilled Sauces &Soups category business is the UK’s

market leader and GreencoreContinental Convenience Foods isthe Continental European arm ofGreencore. The companyspecialises in the production of shortshelf life chilled convenience foods,supplying major continentalEuropean retailers as well as petrolforecourts and airlines.

Sugar Partners is a joint venturepartnership between GreencoreGroup, with its strong heritage ofsugar supply in Ireland, andNordzucker AG, one of the largestsugar producers in Europe with 11facilities and 1.5 million tonnes ofsugar quota.

Its market in Ireland breaks downinto three sectors; Industrial, Retailand Foodservice. Bulk sugar is soldto major industrial customers,principally manufacturers ofconfectionery, soft drinks, bakedgoods and liqueurs. With the retailmarket, Siucra and Castle brandsaccount for half of all table-top sugarsupplied to retail customers inIreland.

Turnover:

€1,308,097,000Net Profit:

€36,420,000Description:Convenience food manufacturer

2 Northwood AvenueNorthwood Business ParkSantryDublin 9

Tel: 01 605 1000CEO / MD: Patrick Coveney

13

T O P 1 0 0 C O M P A N I E S

Patrick Coveney

July/Aug 2009 33

The BWG Group is a wholesaledistribution business that servicesthe retail grocery trade, licensed

trade and catering outlets. Thecompany employs 1,000 peopleacross Ireland and the UK. Its Sparnetwork of stores is a permanentfixture in the convenience retaillandscape.The chain has long been

recognised in Ireland as a trustedbrand offering quality service inmodern stores with competitivepricing.

Convenience retailing hasincreased its share of the overall€12bn grocery market from 6.4% to7.5% last year, reflecting the changein people’s shopping patterns. Themanner in which we shop haschanged. The ‘top-up’ weekly shopswith added visits to weekly storesare the new reality for todays busy,stressed out consumer. In the highlycompetitive world of convenienceretailing, there is a standard thatmost competitors must be expectedto meet but Spar continues todominate with the country’s largestchain of retail food stores. Spar hasbeen in Ireland since 1963 whenfour independent Irish wholesalerscame together to adopt and developthe store concept. A decade later,

these same four wholesalersbecame part of the public companywe know today as BWG Ltd, whichowns and operates Spar in Ireland.

The Spar store network

14Turnover:

€1,303,170,000Net Profit:

€31,170,000Description:Mkt/Distriutiion Petroleum Products

Chevron IrelandFirst Floor Block BLiffey Valley Office CampusQuarryvaleCo Dublin

Tel: 01 613 6100CEO / MD: Paul Martin

Turnover:

€1,300,000,000Net Profit:

€n/aDescription:Retail and wholesale

Greenhills RoadWalkinstownDublin 12

Tel: 01 409 0300CEO / MD: Leo Crawford

15

T O P 1 0 0 C O M P A N I E S

34 TGm

comprises 440 high quality andconveniently located outlets andoffers three innovative storeconcepts which meet consumer’slifestyle needs, includingneighbourhood shopping atstandard Spar stores; forecourt andconvenience at Spar Express andsupermarket shopping at Eurospar.

Spar Local Supermarkets andneighbouring stores remain theprincipal essence of the Sparbusiness. By offering acomprehensive range of productsand services, it meets conveniencerequirements for the ever busyshopper. Spar Express is designedfor smaller stores and forecourtshopping. This format provides allthe general essentials that befit thehectic lifestyle of today’s modernshopper. Eurospar is gearedtowards the family shopper andcustomers love to have a leisurelybrowse among the extensive rangeof products and services on offer atthese supermarkets. Eurospar ismarked out for its fresh food andbaked goods; its salad bar and deli

and its broad aisles.BWG has been driving a steady

expansion plan. The last four yearshas seen the opening of 100 newstores that created 1,200 new jobsand drove retail sales close to the€1bn mark, with retail sales topping€1.8bn. In addition, the expansionand remodelling of stores has beenongoing with an investment of€200m. This has involvedeverything from new shop interiors,revised layouts, as well as newdesigns, equipment and productofferings.

It is almost a requirement withinconvenience retailing to continue topush the bar to new standards andSpar is consistent in the area ofinnovation. For instance, Spar wantsto increase its wine sales by 40%which would bring wine sales to over€50m by 2008. In order to achievethis, the group announced apartnership with food and wineexpert Tom Doorley to expand thewine offering throughout Spar andEurospar stores.

The partnership involves Doorley

offering educational information,guides, in-store information,recommendations and in-storesamplings as well as theintroduction of new wine ranges.Annualised wine sales at Spar havereached an estimated €36m acrossits 3 store concepts, representing5.5 million bottles of wine.The groupsays wine sales are up 20%. Thetotal wine market in Ireland valuedat €600m in retail sales and Spar,through Greenhills Wines & Spirits(a division of BWG Foods)represents 6.5% of the market.

Chief executive Leo Crawfordjoined the BWG in 1996 asmanaging director and wasappointed to ceo in 1999. He joinedthe International Spar brand in 2001and in May 2005 was appointedpresident of International Spar.

In August last year, managers atBWG put together a MBO.The movecame as the group’s mainshareholders Electra Partners saidit planned to sell its stake. LeoCrawford owns 15% of the businesswhile 20% is in the hands ofbusiness man John Clohisey andother shareholders in Newhill Ltdwhose chain of 115 Spar stores wasbought for €45m in a 2002 buyout.

Electra had put in place a five-year time limit on its investment inBWG in 2002 so its exit wasanticipated. The company hasinterests in 900 convenience storesin Ireland and Britain. BWG retailoperates the Spar, Eurospar andMace franchises in the Republic.

It also has a wholesale cash andcarry business with 24 outlets and afood service unit that supplies thecatering industry. In Britain its alsoowns Appleby Westwood, which is aSpar wholesaler in south-westEngland with 350 Spar franchises.As well as owning Spar shops itowns 138 Mace stores in Ireland.This year it intends to add 11 newMace franchises to its network and ithopes to expand both chains at asimilar rate throughout 2007.

15

Leo Crawford

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 35

The Dawn Group was set up inCo. Waterford in 1980 and todayemploys 2,600 people across itsoperations. The group is one ofEurope’s leading food processingcompanies, forming part of theQueally Group, Ireland’s largestprivately-owned agribusiness.

The group has evolved tobecome a highly integratedproduction, sales, marketing anddistribution operation with a clearfocus on quality meat products. Thegroup works closely with itsfarmer suppliers throughvarious Farm AssuranceSchemes to ensure accessto a plentiful supply of topquality animals that matchthe requirements of itsdiscerning consumers.

The group processes halfa million cattle and 1.5million lamb each year, fromwhich it produces 200,000tonnes of added value meatproducts. This includes500,000 consumer packsdelivered each day acrossEurope’s leading retailoutlets.

The group’s range ofconvenience productsincludes burger, specialityand cooked foods. Its retailplants are located acrossIreland, England, Scotland

and Wales, which produce shelf-ready retail, packs for daily deliveryfor Irish and UK multiples. Dawn’ssales and distribution operations arelocated in Ireland, the UK, France,Italy, Holland and Spain.

Dawn Meats has supplied meatproducts to over 40 countriesaround the world since 1980. Itsbrands include among others, DawnChef, Natures Meadow, BlackAngus and West Cork Beef.

Dawn Chef is a value range ofportion beef, pork and lambproducts and is available in minced,diced, carvery, joints or steak cutsvarieties. Natures Meadow is apremium range of Irish beef, porkand lamb steaks. The range ispacked in Darefresh vacuum skinpacks in order to maximise freshshelf life. For example, the NaturesMeadow beef steaks have a freshshelf life of 21 days from the packdate.

The Dawn Group philosophy isto develop business in partnershipwith its customers through its strongpresence in the internationalmarketplace, offering bothdistribution and an excellent back-up service

AIBP is the Irish meat division ofIrish Food Processors (IFP) with abeef turnover in excess of €1bn. Itis the longest established beefprocessing group in Ireland as wellas being Europe’s largest beefproducer.

AIBP commenced business inthe mid-60s when Larry Goodmanestablished his first processingfacility in Dundalk. The Goodmanfamily had a long history second tonone in the agri export businessexporting livestock mainly to theBritish market.

Its head office is now based inArdee, Co. Louth and hasoperations strategically situatedthroughout the county from which ittakes pride in supplying the bestbeef to its customers throughoutEurope and the world.

AIBP factories throughoutIreland are located close to thecattle population ensuring localcontacts are kept to minimize traveland maximise the animal welfarebenefits which ensue.

AIBP markets are largely variedwith strong customer portfolios,where customer requirementsmatch and compliment each other intheir various trading styles.Customers are at the heart of thegroup’s business strategy whichensures it can operate to its bestabilities.

In addition to its standard

Turnover:

€900,000,000Net Profit:

€171,740,000Description:Food Processing

GrannaghCo Waterford

Tel: 051 309 200CEO / MD: Niall Browne

16Turnover:

€850,000,000Net Profit:

€n/aDescription:Meat processing

14 Castle StreetArdee Co Louth

Tel: 041 685 0200CEO / MD: Paul Finnerty

17Irish Food Processors

T O P 1 0 0 C O M P A N I E S

36 TGm

product range, AIBP with its groupexpertise and in response to thechanging market requirements, hasdeveloped three very distinctpremium brands, including,Harmony Farm, Irish Nature andHereford Prime. Harmony Farm is aguaranteed tender succulent andflavoursome. Harmony Farm beef isproduced to a specific regime whichconsistently achieves a tenderquality.

Irish Nature is a ‘guarantee’ of

quality beef. Irish Nature beef istender, succulent and flavoursome.Its beef and its history is fullytraceable back to the individualfarms – part of the AIBP FarmAssurance Scheme. Hereford PrimeCattle are selected from this herd onstrict criteria. The unique taste ofHereford Prime Beef is enhanced byits natural marbling. This finemarbling is the distinguishingfeature of Hereford Beef and is thekey to its juiciness and flavour.

Turnover:

€840,000,000Net Profit:

€n/aDescription:National Lottery Operator

An Post National LotteryAbbey Street LwrDublin 1

Tel:01 836 4444CEO / MD: Dermot Griffin

18

Turnover:

€800,000,000Net Profit:

€n/aDescription:Wholesale Cash & Carry

12 Dundrum Business ParkDublin 14

Tel: 01 296 6000CEO / MD: Tom Shipsey

1917

Stonehouse is Ireland’s leadingindependent wholesale group andoperates as a collective buying forcein the domestic FMCG (fast movingconsumer goods) industry. It has acombined spend in excess of €2bneach year. The group enjoys marketpresence, competitive edge andquality of service all of which defineStonehouse’s business objectives.

The group was first establishedin 2000, as a result of the mergerbetween Keencost Centres (Ireland)trading since 1975 and NationalWholesale Groceries Alliance,established in 1961. The combiningof such knowledge and experiencehas made Stonehouse Ireland’sleading independent wholesalecompany with a network of 28member companies; all family runbusinesses totalling 46 warehousesnationwide.The group employs over1,400 staff and maintains a turnoverof €800m per year.

The Stonehouse ethos hasremained steadfast – to support theindependent Irish trader throughquality of service and productexcellence – with each memberdedicated to a progressive businessmodel that keeps client insight andmarket knowledge to the fore ofgroup activity.

Stonehouse’s principal brand isHomestead which was first

T O P 1 0 0 C O M P A N I E S

established in 1983 under thedirection of National Wholesale. Ithas developed to become one of thecountry’s leading private labels. Therange comprises 170 products incategories ranging from biscuits andpasta to pet food and disposablenappies. Household products suchas firelighters, paper and washing-up liquids are among the best sellinglines and provide strong marketpenetration in the Irish grocerymarket.

The Homestead brand servicesthe wholesaler and retailer ensuringongoing quality control and productinvestment year on year. Its productsare available to the trade via thenetwork of Stonehouse wholesalers.For consumers, Homestead can be

found in the symbol groups as wellas with many independent retailersthroughout Ireland who are servicedby Stonehouse member companies.

To compliment the existingdistribution network, and as a resultof the successful Aontas venture,Homestead can also be found inSuperquinn outlets, ensuring marketpresence in both regional Irelandand major towns and cities likeDublin.

Through close workingrelationships with both customersand industry suppliers, the groupguarantees that its independentgroup of family-run Irish wholesalersdeliver the best product and serviceto meet the need of the progressivemodern retailer.

Kepak Group is one of Europe’sleading food processing companies.Its business is divided into fourstrategic business units, comprisingbeef, lamb, convenience food andtrading. Kepak processes in excessof 400,000 cattle, 2.5 million lambsand 15,000 tons of consumer foodeach year. It has a turnover of€500m and employs more than2,000 people. The Group has ninemanufacturing facilities locatedacross Ireland and the UK as well assales offices throughout Europe andan operations office in SouthAmerica..

Kepak was first established byNoel Keating in 1981. The origins ofthe company go back further thanthis when he opened his firstbutcher shop in Dublin. Thebusiness initially developed throughretailing meat to the public, thendeveloped to providing largercontracts to hospitals, schools andeventually included wholesaling toother butchers.

The business developed quicklyand moved to a purpose built site inClonee, Co. Meath in 1981.Operating as a single plant companyuntil Goldstar Meats, nowincorporated into KepakConvenience Foods Division (KFC)became a wholly owned subsidiaryin 1985.The division was developed

Turnover:

€750,000,000Net Profit:

€n/aDescription:Food Processing

Unit 3 Block 10Blanchardstown Corp. ParkBlanchardstown Dublin 15

Tel: 01 885 7300CEO / MD: John Horgan

20

Tom Shipsey

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 37

38 TGm

as as p e c i a l i s tbeef burgersupplier forboth theretail andfoodservices e c t o r s .KFC hasdevelopedsigni f icantlinks withthe majorIrish and UKretailers.

Innovation has always been tothe core of Kepak’s business and itproved this when capitalising on theemerging demand for fast foodbeing the first company to introducethe quarter pounder beef burger tothe Irish market.

Expansion into the UK began in1995 with the acquisition of theBritish Beef Company.The businessincluded an integrated beef andlamb business including retailpackaging and gave Kepak apresence in the market. This wasfurther solidified when BuchanMeats was acquired in Scotland in1996.

In 1997, KCF invested in newcooking technology that allowed it tosupply fully cooked microwaveableburger to retail and foodservicecustomers. Along with this, thegroup developed both frozen andchilled ranges of savoury packproducts under the Big Al’s andRustler’s brands.

Kepak’s range includes a varietyof own brand products available tothe retail trade. Its range alsoincludes Big Al’s frozen foodsproduct portfolio which offers a beefburger range, a 100% chickenrange, chicken breast grills, anexpress range and microwaveableburger. Rustlers are a chilled rangeof microwaveable hot snacks idealfor busy consumers. Speedy Snacksare a chilled range of microwaveablequick and easy snacks ideal for busyfamilies.

Turnover:

€750,000,000Net Profit:

€n/aDescription:Soft drinks manufacturer

Pepsi Cola InternationalUnit A 3rd Floor Apex Bsn CentreBlackthorn Rd Sandyford Dublin 18

Tel: 01 293 2270CEO / MD: Mike Engler

21

Turnover:

€714,803,000Net Profit:

€30,877,000Description:Tobacco sales and distribution

Block D, Cookstown CourtOld Belgard RoadTallaght, Dublin 24

Tel: 01 404 0200CEO / MD: Martin Southgate

22

Turnover:

€696,670,000Net Profit:

€13,150,000Description:Marketing / Distribution oil products

3 Custom House PlazaIFSC, Dublin 1

Tel: 01 607 6800CEO / MD: Des Duffy

23

20

T O P 1 0 0 C O M P A N I E S

Des Duffy

Turnover:

€688,120,000Net Profit:

€1,310,000Description:Dairy products

Dairygold Co-OperativeClonmel Road MitchelstownCorkTel: 025 24411CEO / MD: Jim Woulfe

24

Turnover:

€620,000,000Net Profit:

€n/aDescription:Retailing

Newcastle RoadLucanCo Dublin

Tel: 01 630 2043CEO / MD: Simon Burke

26

Turnover:

€679,000,000Net Profit:

€92,700,000Description:Manufacturer alcoholic beverages

The GrangeStillorgan RoadCo. Dublin

Tel: 01 616 1100CEO / MD: John Dunsmore

25Turnover:

€600,000,000Net Profit:

€n/aDescription:Sales/Marketing pharmaceutical

Plaza 254Blanchardstown Corporate Park 2BallycoolinBlanchardstownDublin 15

Tel: 01 449 3500CEO / MD: Robert Vincent

27

Turnover:

€598,544,000Net Profit:

€5,193,000Description:Wholesaler petroleum/petroleumproducts

Level 2, 5 Harbourmaster PlaceIFSC, Dublin 1

Tel: 01 855 5559CEO / MD: Tony Parr

28

Simon Burke

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 39

Turnover:

€580,000,000Net Profit:

€n/aDescription:Discount retailers

Great Connell RoadNewbridge Co Kildare

Tel: 022 50594CEO / MD: Patrick Kaudewitz

29

Turnover:

€550,000,000Net Profit:

€n/aDescription:Retailing

24-29 Mary Street, Dublin 1

Tel: 01 872 8833CEO / MD: Jonathan Smith

30

Turnover:

€500,000,000Net Profit:

€n/aDescription:Pharmaceuticals manufacturer

CruiserathMulhuddart, Dublin 15

Tel: 01 885 4000CEO / MD: Brian Harrison

31

Turnover:

€500,000,000Net Profit:

€n/aDescription:Fuel importers

Promenade RoadDublin 3

Tel: 01 819 8080CEO / MD: Raymond Reihill

Turnover:

€450,000,000Net Profit:

€n/aDescription:Distillers

Simmonscourt HouseSimmonscourt RoadBallsbridgeDublin 4

Tel: 01 212 9000CEO / MD: Alexander Ricard

32

33

Tedcastle Holdings

T O P 1 0 0 C O M P A N I E S

40 TGm

T O P 1 0 0 C O M P A N I E S

Turnover:

€420,000,000Net Profit:

€n/aDescription:Pharmaceutical

Stonemasons WayRathfarnhamDublin 16

Tel: 01 495 5000CEO / MD: Finbar Whyte

34

Turnover:

€380,000,000Net Profit:

€n/aDescription:Tobacco manufacturer

21 Beckett WayNangor Road, Dublin 12

Tel: 01 243 4800CEO / MD: Andrew Meagher

36

Turnover:

€390,000,000Net Profit:

€n/aDescription:Pharmaceutical

Citywest Business CampusDublin 24

Tel: 01 467 6600CEO / MD: Paul Duffy

35Turnover:

€371,273,000Net Profit:

€5,177,000Description:Retail franchise group

JohnstownNaas, Co. Kildare

Tel: 045 879 103CEO / MD: Stephen O’Riordan

37

Turnover:

€371,226,000Net Profit:

€16,776,000Description:Peat producer

Main Street NewbridgeCo Kildare

Tel: 045 439000CEO / MD: Gabriel Darcy

38Stephen O’Riordan

July/Aug 2009 41

42 TGm

Turnover:

€323,800,000Net Profit:

€n/aDescription:Pharmaceutical DistributionWholesale

PharmaparkChapelizodDublin 20

Tel: 01 630 5555CEO / MD: Gary Collins

41

Turnover:

€312,233,000Net Profit:

€55,830,000Description:Food/home/personal care

20 Riverwalk National Digital ParkCitywest Business CampusDublin 24

Tel: 01 291 4000CEO / MD: Ronald Drieduite

42

Turnover:

€310,000,000Net Profit:

€-1,750,000Description:Agri Co-op

Ballinagh RoadTubbercurry, Co Sligo

Tel: 071 918 6500CEO / MD: Aaron Forde

43Turnover:

€350,000,000Net Profit:

€n/aDescription:Confectionery

Malahide RoadCoolockDublin 5

Tel: 01 848 0000CEO / MD: Greg Chick

39

Turnover:

€346,000,000Net Profit:

€n/aDescription:Brewing

Murphy Brewery, Leitrim StreetCork

Tel: 021 450 3371CEO / MD: David Ford

40

T O P 1 0 0 C O M P A N I E S

Turnover:

€300,000,000Net Profit:

€n/aDescription:Frozen food manufacturer

Bond RoadDublin 3

Tel: 01 876 8050CEO / MD: Gary Walsh

Turnover:

€295,000,000Net Profit:

€n/aDescription:Fruit/vegetable importer/distributor

15 Little Green StreetDublin 7

Tel: 01 889 8100CEO / MD: Joe Keeling

Turnover:

€294,148,000Net Profit:

€3,500,000Description:Wholesale household/health &beauty

Ballymount AvenueWalkinstown, Dublin 12Tel: 01 408 1400CEO / MD: Norman Moorehouse

Turnover:

€260,000,000Net Profit:

€n/aDescription:Baby food manufacturer

Plaza 254Blanchardstown Corporate ParkBallycoolin, Dublin 15

Tel: 01 449 3500CEO / MD: Emmet Brown

Turnover:

€251,594,000Net Profit:

€7,234,000Description:Soft drinks distributor

Huntstown Business ParkCappagh RoadBallycooliin, Dublin 11

Tel: 01 880 7100CEO / MD: Alfie Lydon

47

48

44

45

SMA CONSUMER HEALTHCARE

BOTTLERS IRELAND

T O P 1 0 0 C O M P A N I E S

46

July/Aug 2009 43

44 TGm

Turnover:

€243,000,000Net Profit:

€5,270,000Description:Mineral water/soft drinks

UNIT 16 Cherry Orchard EstBallyfermotDublin 10

Tel: 01 626 9787CEO / MD: Patrick Cooney

49

Turnover:

€228,989,000Net Profit:

€6,802,000Description:Tobacco manufacturer/distributor

Burton Hall ParkSandyfordDublin 18

Tel: 01 205 2300CEO / MD: Toby Granwal

51

Turnover:

€226,102,886Net Profit:

€3,117,000Description:Wholesale dairy products/eggsedible oils

Ground Floor, Unit 16Fonthill Industrial Park, Dublin 22

Tel: Andrew BurkeCEO / MD: 01 616 1556

50Turnover:

€226,200,000Net Profit:

€8,470,000Description:Dairy and food products

BallneenCorkTel: 023 88 22200CEO / MD: Dan McSweeney

Turnover:

€225,000,000Net Profit:

€n/aDescription:Retailing

Newbridge Road, NaasCo KildareTel: 045 846 300CEO / MD: Donald Mackay

Turnover:

€239,000,000Net Profit:

€5,360,000Description:Retail sale of automotive fuel

Block 17, Joyce WayPark WestDublin 12

Tel: 01 512 4800CEO / MD: Bob Etchington

52

Turnover:

€204,957,000Net Profit:

€2,275,000Description:Not-for-profit organisation

Roslyn Park, SandymountDublinTel: 01 205 7200CEO / MD: Angela Kerins

53

54

55

T O P 1 0 0 C O M P A N I E S

Turnover:

€160,000,000Net Profit:

€n/aDescription:Dairy produce manufacturer

Coolshannon, Monaghan

Tel: 047 81400CEO / MD: Vincent Gilhawley

Turnover:

€150,000,000Net Profit:

€n/aDescription:Moneen Road, CastlebarCo Mayo

Tel: 094 9022244CEO / MD: Pat Gallagher

Turnover:

€153,453,000Net Profit:

€16,130,000Description:Food distributor

Burton Court, Burton Hall RoadSandyford, Dublin 18

Tel: 01 453 3200CEO / MD: Andrew Clarke

Turnover:

€169,000,000Net Profit:

€n/aDescription:Milk processing

Station Road, Tipperary

Tel: 062 33111CEO / MD: Ted O’Connor

59

Turnover:

€150,000,000Net Profit:

€n/aDescription:Beer/wine distributor

Nangor House, Nangor RoadDublin 12

Tel: 01 429 2200CEO / MD: Joe Quinsey

Turnover:

€204,542,000Net Profit:

€1,642,000Description:Cash and carry wholesalers

Upper Quartertown,Mallow, Co. Cork

Tel: 022 30100CEO / MD: Jim Barry

Turnover:

€143,000,000Net Profit:

€n/aDescription:Poultry processing/distribution

Bracetown Business ParkClonee Co Meath

Tel: 01 801 4142CEO / MD: Vincent Carton

Turnover:

€190,000,000Net Profit:

€n/aDescription:

P.O Box 8, EnniscorthyCo Wexford

Tel: 053 937 7155CEO / MD: Rory Fanning

62Turnover:

€146,604,000Net Profit:

€n/aDescription:Food manufacturer/distributor

3003 Lake DriveCitywest Business ParkDublin 24

Tel: 01 449 7777CEO / MD: Ciaran Sullivan

James A. Barry& Company Ltd

57

Carton Group

60

56

63

58

61

64

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 45

46 TGm

Turnover:

€140,290,000Net Profit:

€4,770,000Description:Marketing mushrooms

Tyholland, MonaghanCo. Monaghan

Tel: 047 38200CEO / MD: Ronald Wilson

Turnover:

€130,000,000Net Profit:

€n/aDescription:Supermarket retail

117 Rock Street, TraleeCo Kerry

Tel: 066 714 9995CEO / MD: Kevin McCarthy

Turnover:

€140,588,457Net Profit:

€8,032,000Description:manufacturer fruit / veg juice

Second Floor46 Mountjoy Square, Dublin 1

Tel: 01 879 6600CEO / MD: John Wright

Turnover:

€141,000,000Net Profit:

€n/aDescription:Marketing/sales/distribution

Cape House 2nd FloorWest End Office ParkBlanchardstown Dublin 15Tel: 01 640 7000CEO / MD: Eddie Scaife

Turnover:

€133,569,000Net Profit:

€3,629,000Description:Wine and spirits

Estuary House, Block P7Eastpoint Business ParkFairview, Dublin 3

Tel: 01 819 3300CEO / MD: John Pearson

Turnover:

€124,126,000Net Profit:

€-5,625,000Description:Wholesale of dairy/eggs/edible oils/fats

Kileshandra, Co. Cavan

Tel: 049 436 4200CEO / MD: Michael Hanley

Turnover:

€121,000,000Net Profit:

€27,430,000Description:Food products manufacturer/distributor

Belgard Road, Tallaght, Dublin 24

Tel: 01 414 1111CEO / MD: Seamus Kearney

Turnover:

€129,000,000Net Profit:

€730,000Description:Liquid milk/cream

Ballyraine, LetterkennyCo. Donegal

Tel: 074 912 1766CEO / MD: Ian Ireland

Turnover:

€130,000,000Net Profit:

€n/aDescription:Distribution food/confectionery

Unit 2 Allied Industrial EstateKylemore Road, Dublin 10

Tel: 01 623 1610CEO / MD: Geoffrey Beggs

MonaghanMiddlebrookMushrooms

Tennant &Ruttle

65 66

69

67

68

72 7371

70

T O P 1 0 0 C O M P A N I E S

Turnover:

€116,025,000Net Profit:

€1,804,000Description:Food distribution company

Ardagh Road, Newcastlewest,Co. Limerick

Tel: 069 20200CEO / MD: Tim Geary

Turnover:

€110,000,000Net Profit:

€n/aDescription:Production of mineral water andsoft drinks

Kylemore Park West, BallyfermotDublin 10

Tel: 01 616 1200CEO / MD: Andrew Richards

Turnover:

€114,581,000Net Profit:

€15,780,000Description:Pharmaceutical goods sales andmarketing

Stonemasons Way, RathfarnhamDublin 16

Tel: 01 495 5000CEO / MD: Auroa de Barra

Turnover:

€118,765,000Net Profit:

€16,485,000Description:Sales/Distribution HJ Heinzproducts

Stradbrook House, StradbrookRoad, Blackrock, Co. Dublin

Tel: 01 280 5757CEO / MD: Joe Mohan

Turnover:

€110,000,000Net Profit:

€n/aDescription:Food manufacturer/distributor

Platin Road, DroghedaCo. Louth

Tel: 041 987 0300CEO / MD: Malachy McCloskey

Turnover:

€97,104,000Net Profit:

€4,300,024Description:Distributor of beer

South Main StreetCork

Tel: 021 491 1100CEO / MD:

Turnover:

€95,318,000Net Profit:

€1,174,000Description:Meat processing

DrumnashearCarrigans, Co. Donegal

Tel: 074 914 0228CEO / MD: Michael McKay

Turnover:

€105,000,000Net Profit:

€n/aDescription:Food processing

72 - 74 Bannow Road,Cabra West, Dublin 7

Tel: 01 838 0133CEO / MD: Eugene Heary

Turnover:

€109,161,000Net Profit:

€2,139,000Description:Frozen foods distributor

Kinsale Road, Cork

Tel: 021 494 7300CEO / MD: John Casey

H J Heinz Co (Ireland) Ltd

Beamish & Crawford

75

78

7674

77

81 8280

79

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 47

48 TGm

Turnover:

€89,818,000Net Profit:

€-7,284,000Description:Manufacturer snack foods

KilbrewAshbourne, Co. Meath

Tel: 01 835 0611CEO / MD: Maurice Hickey

Turnover:

€86,161,000Net Profit:

€2,812,000Description:Wine/spirits/beer importer

Ballycurreen Industrial EstateAirport Road, Cork

Tel: 021 432 0900CEO / MD: Michael Barry

Turnover:

€87,981,000Net Profit:

€3,549,000Description:Manufacturer of prepared pet foods

EdgeworthstownCo. Longford

Tel: 04366 721 000CEO / MD: Philip Reynolds

Turnover:

€95,000,000Net Profit:

€n/aDescription:Soft drinks and beer distributor

Belgard RoadTallaght, Dublin 24

Tel: 01 451 9146CEO / MD: Geoff Coman

Turnover:

€88,220,000Net Profit:

€63,000Description:Tea and coffee producer

Northern CrossMalahide Road, Dublin 17

Tel: 01 816 0680CEO / MD: John Cahill

Turnover:

€80,000,000Net Profit:

€n/aDescription:LPG distributors

Long Mile Road, Dublin 12

Tel: 01 450 5000CEO / MD: Steve Cooks

Turnover:

€80,000,000Net Profit:

€n/aDescription:Production ready meals/frozenfoods

IDA Industrial EstateCarrickmacross Co Monaghan

Tel: 042 966 2100CEO / MD: Diarmuid Kilduff

Turnover:

€83,000,000Net Profit:

€n/aDescription:Dairy agri producers

Drinagh, Co Cork

Tel: 028 30800CEO / MD: Joe O’Sullivan

Turnover:

€86,000,000Net Profit:

€n/aDescription:Petfood manufacturer

Goresbrdige, Co Kilkenny

Tel: 059 977 5860CEO / MD: Joe Connolly

C & D Foods

Campbell Bewley Group Barry & Fitzwilliam Maxxium

CO - OP

Rye Valley Foods

83 84

87

85

86

9091

89

88

T O P 1 0 0 C O M P A N I E S

Turnover:

€74,891,000Net Profit:

€38,954,000Description:Manufacturer of rusks, biscuits,preserved pastry goods and cakes

Belgard Road TallaghtDublin 24

Tel: 01 414 1111CEO / MD: Seamus Kearney

Turnover:

€70,000,000Net Profit:

€n/aDescription:Fruit /veg importer/distributor

Roslin Food Park, St MargaretsCo. Dublin

Tel: 01 890 8100CEO / MD: Harry McNamee

Turnover:

€73,324,969Net Profit:

€50,213,000Description:Beauty care product manufacturer

The Graan House, Unit E1 & E14Charlemont Business ParkDublin 12

Tel: 01 408 1400CEO / MD: Mindy Thompson

Turnover:

€75,000,000Net Profit:

€n/aDescription:Wine importers/distributors

Bessboro RoadBlackrock, Cork

Tel: 021 497 2200CEO / MD: John Galvin

Turnover:

€70,691,000Net Profit:

€1,534,000Description:Cash & Carry

Clonminan Business ParkPortlaoise, Co. Laois

Tel: 057 862 0266CEO / MD: Liam Linden

Turnover:

€68,224,000Net Profit:

€4,148,000Description:Manufacturer of bread and pastries

Greenhills Ind Est. WalkinstownDublin 12

Tel: 01 460 8400CEO / MD: Gary Stewart

Turnover:

€65,000,000Net Profit:

€n/aDescription:Mushroom exports

Creagh, Gorey, Co Wexford

Tel: 053 942 1182CEO / MD: Michael O’Sullivan

Turnover:

€68,713,000Net Profit:

€-940,000Description:Manufacturer of paper and foilproducts

McKee Avenue, Finglas, Dublin 11

Tel: 01 806 8100CEO / MD: Liam Smith

Turnover:

€70,000,000Net Profit:

€n/aDescription:Supermarkets

St. Aidan’s Shopping CentreWexford

Tel: 053 9234265CEO / MD: Desmond Pettitt

Irish Biscuits Procter & Gamble

4 AcesWholesale

93

96

9492

95

99 10098

97

T O P 1 0 0 C O M P A N I E S

July/Aug 2009 49

50 TGm

The Kavanagh group, a family-owned supermarket chain with storesin Ireland and Britain, is buying twonew shops in England despite “verychallenging” conditions for retailers.

The group’s managing director,Noel Kavanagh, said he was looking atbuying two former Sommerfeldsupermarkets, which would bring hisgroup to 17 stores in total. At themoment, the Kavanagh group has nineSuperValu supermarkets in therepublic, two SuperValu’s in the Northand four Budgens shops in Sussex,England.

Kavanagh is planning theexpansion despite what he describedas “a very difficult” year last year, whenthe group’s Irish sales were hit by theeconomic slowdown, cross-bordershopping and new store openings bycompetitors. The 11 Irish stores hadsales of €100.4m last year, comparedwith €15.2m in 2007 - a drop ofalmost 13 per cent.

Operating profits also fell, from€5m in 2007 to €3.2m last year. Aftera €2.2m interest payment, the groupmade a pre-tax profit of €1m in 2008.Kavanagh said the figures were “verycommendable”, given thecircumstances. Four of the firm’s Irishsupermarkets are just south of theborder and suffered from shoppersgoing to the North for lower prices.

“The cross-border exodus was a bighit to us,” said Kavanagh, whose laststore opening was in Ballybofey, CoDonegal, late last year. At the time, theeuro and sterling were almost on a par,so attracting shoppers was difficult. Itwas a challenge, but business therehas grown significantly since then.”

Nine new competitors opened lastyear in towns where Kavanaghoperates, including new Tesco stores inWestport and Claremorris in Mayo.

“It was a very challenging year -and it continues to be challenging. It isa very aggressive market, but we arewinning customers,” he said.

The sales figures exclude theBudgens stores in England, whichKavanagh bought in 2005 from theMusgrave Group.

Kavanagh said sales at those foursupermarkets were down marginally toabout €25m last year, but thatbusiness was also continuing to tradeprofitably. “We put a lot of work in oncosts, on increasing profitability,” hesaid.

The British operation is run by oneof Kavanagh’s sons, Noel Jnr.

Another son, Mark, is heavilyinvolved in the Irish business, whichhas its headquarters in Westport. TheKavanaghs also own the Wyatt Hotel,a coffee shop, hardware store andfashion outlet in Westport.

According to Kavanagh, the impactof the recession can be seen across theboard.

“The customer count is holding upwell, but their spending is down andour figures are down,” he said. “Allsectors are down, but the world isn’tgoing to stop. Well-financed companieswill be okay.

“We revamped all of our stores inthe last three years, so there is noneed for big capital expenditure. Wewill just work hard and sweat ourassets.”

Kavanagh said the group hadstarted matching the prices of its rivals

several months before a concertedcampaign was launched by theMusgrave Group, which owns theSuperValu, Centra and Budgensbrands

“Our four stores In Mayo were thefirst ones outside the border countiesto roll out the border pricing. We haverun a strong price-matching campaignand are winning customers.”

More recent pricing moves byMusgrave have helped that further,and SuperValu’s market share grew inthe first half of this year “in the face ofeverything”, Kavanagh said.

“Musgraves did a serious body ofwork; the group tackled the supply-chain piece and took considerablesavings out of it. It took some time, butwe are matching Tesco, penny forpenny.”

The Kavanagh Group had just over700 staff in Ireland last year and itswage bill was €11.8m, according to its2008 accounts. The British storesemploy about 210 people.

Kavanagh and his wife, Marian, areshareholders and directors of thebusiness, while their two sons becamedirectors in May.

K A V A N A G H G R O U P F O R G E S A H E A D

KAVANAGHGROUP FORGES AHEAD“We revamped all ourstores in the last threeyears, so there is noneed for big capital

expenditure.We will just work hardand sweat our assets.”

52 TGm

Cider maker C&C’sshares plunged 16%recently, after the companywas forced to admit that itmisstated the revenues ithas earned in recentmonths in the tradingupdate it issued toinvestors.

In what the companysaid was a “straightforwarderror in reporting lines”,C&C over-estimated itsrevenues in all of its keydivisions on July 8th.

The company said itsrevenues over the four-month period up to the endof June had increased 3 percent, whereas they haddeclined by 5 per cent.

Revenues from Magnerscider in Britain, rather thanfalling by 1 per cent, fell 12per cent compared to lastyear, while revenues from

Bulmers, which appeared tohave improved 7 per centyear-on-year after a dismalperiod for Irish bar sales,were actually flat.

C&C’s spirits andliqueurs division, which wasreported to have suffered a12 per cent decline inrevenues, instead saw salesfall 22 per cent, accordingto the restated figures.

A spokesman for C&Csaid the error was reportedto the market as soon as itwas identified.

“The trading update wasto revise operating profitguidance for the full year,and the basic guidancebehind the trading updateremains the same” thecompany said in astatement.

The drinks group said itstill expected operating

profit for its currentfinancial year, which runsuntil the end of February2010, to be “at the top endof the group’s previouslystated guidance of €77-€82m”.

Despite the lower than

reported revenues, C&Csaid trading in the March-June had been“encouraging’ and that thegroup had “a greaterdegree of confidence aboutits plans for the currentfinancial year.

REVISED REVENUES

The National ConsumerAssociation recently issueda price survey whichconfirms that SuperValu hassignificantly reduced itsprices over the last sixmonths and is performingvery strongly amongst itscompetitive set.

“We are delighted thatthe survey has recognised

that SuperValu is competinghead-to-head on prices,particularly through oursterling match programmein border stores,” saidDonal Horgan, managingdirector, SuperValu.

“The survey findings alsoreflect the price reductionsintroduced with the recentlaunch of SuperValu’s “All

We’ve Cut is Our Prices”value campaign. Throughthis campaign, we havereduced the cost of anaverage weekly trolley ofgoods at SuperValu’s 194stores across the country by€30, a drop of 23%”.

SuperValu’s approach isto provide shoppers withlong price cuts on everydayitems, coupled with amarket leading promotionaland special offersprogramme which allowsshoppers to further reducetheir weekly spend.

“Today’s survey is anendorsement of ourcommitment to bringinglower prices to consumers,without compromising ourcommitment to Irish brandsand jobs,” said Horgan.

“75% of everything onSuperValu’s shelves issourced or produced inIreland and this is set tocontinue”.

NCA SURVEY CONFIRMS REDUCTIONS

National OrganicWeek will take placefrom 14th-20thSeptember. Funded bythe Department ofAgriculture, Fisheriesand Food and co-ordinated by Bord Bia,NOW aims to continueto raise consumerawareness of organicfood, how to recognise itwhen shopping andwhere to buy it.

NATIONAL ORGANICWEEK

N E W S

54 TGm

Drinks Industry Groupof Ireland (DIGI) chairmanKieran Tobin said thefigures confirmed the worstfears of the industry that “amajor increase in cross-Border shopping and the

dire economic situation areexacerbating the trend offalling sales volumes andaverage consumptionlevels”.

Tobin said bothbusinesses and jobs were at

risk across all sectors of thedrinks industry, especiallyin the Border region”. Littlepick-up in sales is expectedduring the remainingmonths of 2009.

The Revenue date showsthat the largest decline wasin spirits, with volumesplummeting 19.1 per cent.

Beer sales saw the nexthighest drop, down 12.4per cent, while cider salesdecreased by 12 per cent.The sale of wine was down10.6 per cent.

“These are enormousand unprecedented rates ofdecrease,” said Tobin, whois communications andcorpo rate affairs director ofPernod Ricard.

“Given the continuingattractiveness of cross-Border shopping and thescale of this decline, ROIconsumers are undoubtedlycontinuing to source someof their alcohol productsfrom over the Border.”

A weak sterling hascombined with the UK’slower rates of VAT andexcise duty to widen thegap in alcohol pricesbetween the Republic andNorthern Ireland.

Tobin welcomed the

Government’s decision notto further increase exciserates in last monthssupplementary budget, buthe added that, given thescale of the decline inoverall retail sales, includingalcohol, the Governmentshould now considerreducing excise and VATrates.

The report of theCommission on Taxation,due later this year, shouldtake account of the effect ofthe Republic’s high alcoholtaxation rate on tourism,Tobin said.

The drinks industrywarned in March that about10,000 jobs would be lostfrom the €7 billion drinksindustry in 2009.

ALCOHOL SALES DWINDLE BY 13%Alcohol sales in the Republic plunged by an unprecedented 13per cent in the first three months of 2009, according to new

figures from the Revenue Commissioners. However, the dramaticdecline in sales compared to the same quarter in 2008 is not

entirely due to people drinking less alcohol, but is at least partlythe result of a surge in cross-Border shopping, according to

industry representatives.

“Given the continuing attractiveness of cross-Bordershopping and the scale of this decline, ROI consumersare undoubtedly continuing to source some of their

alcohol products from over the Border.”

D R I N K S N E W S

Kieran Tobin

56 TGm

N E W S

Coca-Cola has warnedthat up to 130 jobs in itsIrish bottling anddistribution business areunder threat as it seeks toreduce its cost base in theRepublic.

In a statement issuedrecently, Coca-Cola HBCIreland said that a review ofits logistics infrastructurefound the operational costof the current system to be“exceptionally high whenmeasured against theindustry in Ireland andother comparable countrieswithin the Coca-ColaHellenic Group.

“This cost base is notsustainable and decisiveaction is needed in theinterests of the futureviability for the business,”

the company said, addingthat the most viablesolution would be tooutsource to an Irishprovider.

If the company decidesto take this course ofaction, it will result in theclosure of its warehousingand distribution in theRepublic.

Approximately 13employees based in DublinCork, Tuam, Tipperary,Waterford and Killarney willlose their jobs.

Coca-Cola has beencarrying out bottling anddistribution activities inIreland for more than 50years. It employs 1,250people in its bottlingoperations in the Republicand Northern Ireland.

CCHBC CONSIDERS OUTSOURCING

NEWDISCOUNT CHAIN FOR IRELAND

BRINGING HOME THE BACON

A new discounter looksset to enter the Irishmarket, shaking up thegrocery sector even further.

Numerous sourcessuggested that Netto, theDanish discounter with asignificant presence inBritain, may be looking for

sites but this could not beconfirmed.

The London-basedcompany is understood tobe looking for at least 15sites of about 5,000 to6,000 sq ft, mostly in thegreater Dublin area.

The ongoing price warsdominating the retailsectors have sparked fearsamong Irish producers, buta new venture is buckingthe cut-price trend awayfrom home produce.

Truly Irish CountryFoods has signed deals withSuperquinn, SuperValu andCentra to have its products,all of which are produced byIrish farmers, placed in Irishstores.

Earlier this month, thecompany announced anagreement to supply locallyproduced rashers andsausages to 194 SuperValuoutlets around the country.

The contract marks amajor milestone for thepork industry in Ireland,according James McGrath,chairman of Truly IrishCountry Foods.

Established three yearsago as North South PigCompany Ltd, the companyrebranded recently in linewith its retail strategy.

“The idea to rebrandcame about 12 monthsago, when we saw that thenext step for the companywas to get into the retailside of things”, saidMcGrath, who becamechairman last August.

He said the brand cameabout in response toconcerns, among Irishconsumers, about theorigin, labelling and qualityof meat products availablein the Irish market.

“It really was inresponse to the poorconfidence in products onthe market. We knew wewere producing a premiumproduct, and had to dosomething about it,” hesaid.

The company comprises140 producers, all of whomare shareholders, whosupply their stock to thecompany. In total, Truly IrishCountry Foods represents70 per cent of pork

producers in Ireland.“By setting up the

company, we have takencontrol of our product,because up to now we wereselling our sows and gettinga very poor price for them,”said McGrath.

The new brand willguarantee that anyconsumer purchasingproducts from the range willget a 100 per centproduced Irish product thatis Bord Bia quality-assured,according to McGrath.

Shareholders arepromoting their products instores across the country,and the company has alsolaunched a full-scale mediacampaign.

By buying Truly IrishCountry Foods, McGrathsaid consumers wereputting money back into theIrish economy. “This meansthey are sustaining andcreating jobs in the localeconomy,” he said.

McGrath estimated thatthe Irish pork industrysupports 8,000 jobs alone.

“Our aims are to protectrural jobs, to giveconsumers a qualityproduct, to safeguard ourshareholders, and to getyoung people interested inagriculture by increasingrevenues,” he said.