CK 0811 Front Cover.qxp 23/08/2011 10:10 Page 1 Produced in association with FP AD TEMPLATE 23/08/2011 10:12 Page 1 CK 0811 Contents.qxp 23/08/2011 11:14 Page 3 CHECKOUTVOTED B2B MAGAZINE OF THE YEAR 2009 VOL. 37 NO.8 AUGUST 2011 dominate the market, retaining on to second place in the Top 100 for a second year, the market share of the Top 5 milk brands has dropped to 37.5 per cent this AUGUST 2011 year, down from 44 per cent last year, Vol. 37 No.8 and 52 per cent in 2009. Should both PL and the discounters continue their upward trajectory, you can expect to see CHAIRMAN/PUBLISHER KEVIN KELLY this share drop yet further. The other big story of the month, of EDITOR STEPHEN WYNNE JONES course, has been the Musgrave – [email protected] Superquinn deal, which appears to be nearing its conclusion. At the time of SENIOR REPORTER GRÁINNE BURNS going to press, Checkout was still [email protected] anticipating the Competition Authority’s here’s an old adage that goes, ‘the decision – a ‘request for further CONTRIBUTORS CONOR O’BRIEN, FAYE COULMAN more things change, the more they information’ from the parties involved Tstay the same’. ‘Change’ in this put the kibosh on the deal being PHOTOGRAPHY DAVE KENNY instance (if you haven’t noticed the approved in time for our deadline. unfamiliar face peering out at you from the However, from speaking to a number of ART DIRECTOR PAUL KELLY/IGOR BIASINI page) is the arrival of a new editor, myself, retail experts at length on the subject following the departure of John Ruddy, (including Superquinn’s founder, Senator SENIOR ACCOUNT MANAGER DANI SINNOTT who has embarked on a promising career Feargal Quinn), we would be confident [email protected] with one of the country’s top legal firms. that the deal will be signed off sooner Under John’s captaincy, the good ship rather than later. ACCOUNT MANAGER TREASA MAGUIRE Checkout enjoyed a level of influence it As for whether Musgrave will seek to [email protected] hasn’t seen for years, becoming a true voice retain the Superquinn brand or rebrand of the industry through the budding years its stores to SuperValu remains a subject CIRCULATION/SUBSCRIPTION COLETTE O’BRIEN of the economic downturn. For myself, Chris Martin is likely keeping close to his [email protected] then, it’s a case of big shoes to fill; chest for the time being, but the smart nonetheless, both I and the hardworking money is on the Superquinn fascia being PRINTER GPS COLOUR GRAPHICS team at Checkout will endeavour to retained at least in the short to medium continue to set the retail news agenda in term, with some underperforming stores CHECKOUT CONFERENCE COLETTE O’BRIEN this country. As always, if you have any likely to be hived off. EMAIL: [email protected] news, comment, or if you merely want to Long term, things may change, of say hello, you can catch me at the same course, and I believe there’s a case to be email address, [email protected] made for Superquinn to be revamped in a CHECKOUT PUBLICATIONS LTD., In terms of things ‘staying the same’, a similar style to Spain’s Mercadona, Adelaide Hall, 3 Adelaide Street quick glance at the top of this year’s Top arguably the European grocery success Dun Laoghaire 100 Brands, compiled in association with story of 2011. Based around an EDLP Co. Dublin Nielsen, indicates that in terms of brand model, Mercadona’s limited selection exposure, it’s getting more and more belies the fact that its private label brands Tel: (01) 2300322 difficult to keep up with the big boys. That – Deliplus, Compy, Hacendado – are Fax: (01) 2300629 the top eight brands have remained amongst the highest-rated products in E-mail: [email protected] unchanged since last year’s table is Spain, while its loyal staff are all highly- Web: www.checkout.ie remarkable, and a further indication, if it trained to be ‘department specialists’. were needed, that when the chips are Look them up. down, people stick to the brands they In the meantime, enjoy the issue. CHECKOUT is circulated to all leading symbol and know and love. multiple groups, independent retailers including all Of course, the past year has also seen the RGDATA members, cash and carrys, off-licences and continued rise of private label, increasing forecourts. Subscription rates for CHECKOUT are €98 its grocery market share by 4.4 per cent in + VAT per year including first class postage and the past year (according to Kantar packing. All rights reserved by Checkout Publications Worldpanel), and this is having a Ltd., reproduction without written permission is strictly disruptive effect on particular categories, prohibited. such as milk. While Avonmore still Stephen Wynne Jones, Editor, Checkout CK 0811 Contents.qxp 22/08/2011 22:00 Page 4 4 CHECKOUT august 2011 contents VOL. 37 NO.8 AUGUST 2011 in association with CONTENTS CHECKOUT TOP 100 BRANDS 120 TOP 50 ALCOHOL BRANDS The price driven alcohol market sees some big changes 42 TOP 100 BRANDS Who will be moving up and down the top FMCG rankings this year? 130 TOP 20 WINES Four new entrants shake up the wine listings 84 TOP 100 CATEGORIES An analysis of the leading grocery categories 132 TOP 20 LADS Can the big names hold on to their top positions? 114 TOP 10 TOBACCO BRANDS The Big Guns hold on to share despite market challenges 136 TOP 20 SPIRITS The traditional stalwarts fight off the new competition BRANDS 2011 CK 0811 Contents.qxp 22/08/2011 22:01 Page 5 2011 august checkout 5 contents CHECKOUT TOP 100 ANALYSIS 40 THE HOW AND WHY OF THE TOP 100 Karen Mooney of Nielsen explains how the listings are NEWS examined and compiled. 80 NEUROFOCUS 6 NEW CARD CHARGES Retailers face 150% hike in Visa Debit card Checkout examines the new charges world of neuromarketing, and what effect it could 8 SLOW SUMMER FOR RETAILERS have on the Top 100 Dunnes and Superquinn lose more market share 82 THE PRICE ISSUE Oonagh Walsh of Nielsen on how price and promotional strategies are impacting on consumer choices. 12 BRAND BURSARY One lucky SME could win a lucrative €10,000 packaging and design consultation with the Vard Partnership. 10 BARRY NOT BANKING Barry Group stall plans for Carry out Expansion 14 LESS VAT, MORE FAT Stephen Wynne-Jones looks at how the recent reduction in VAT is pumping upseveral publishers’ coffers in the newspaper industry REGULARS 16 SUPERQUINN – THE AFTERMATH 138 BRAND NEWS Checkout looks at the implications of the Country Crest expands portfolio range Musgrave/Superquinn deal on the brand itself, suppliers and overall market positioning 145 WHO IS... Seamus McHugh of CBE Ireland 23 BEST IN FRESH AWARDS With a number of new entrants, the 2011 Awards proved one of the most competitive to date. 108 TOP OF THE CHARTS Checkout talks to some of the best-performing companies in the Top 100 abouthow they continue to build on their position. 146 FINAL WORD Bruton backs down once again as the 111 MOVERS AND SHAKERS JLC drama rumbles on. Checkout talks to the brand managers behind some of the key movers in this year’sTop 100. CK 0811 NEWS Headline.qxp 22/08/2011 21:44 Page 6 6 CHECKOUT august 2011 news Top 100 Brands 2011 Revealed No Change at Top as Confectionery and Health-Focused Brands Both Show Moderate Improvements Coca-Cola has retained its place as Ireland’s Number One brand in the 2011 Checkout Top 100 Brands, produced in association with Nielsen. In fact, for the first time, there has been no change in position across any of the top eight brands on the list, with Avonmore, Brennans, Lucozade and Tayto completing the top five. A newcomer to the top ten this year is Walkers, which claims tenth spot, after four years at No. 12. Irish brands have performed well once again – further proof of the loyalty that consumers have to homegrown produce in tough times – while this year’s chart has also seen a growth in ‘snacking’ products (such as Confectionery, New Debit Card Charges Irk Retailers Crisps, Biscuits and Ice Cream), as well as ‘healthy-eating’ related products. RGDATA, CSNA Among Bodies Calling for Action “Congratulations to all the brands that made it in this year," says Karen Mooney, Consumer Insights, Retailers may have no choice other than to pass on price hikes associated with using Nielsen. "It is a huge accomplishment given there are thousands of brands, plus the multitude of the new Visa Debit cards, according to representative associations linked to the economic and financial pressures experienced by manufacturers and retailers alike over the past 12 trade. The roll out of the new Visa Debit cards has caused some confusion and anger months. The year has also been a really tough one for the consumer, and value for money has become within the industry as retailers are facing higher transactional fees. The standard flat more important than ever before with consumers much more cautious. Almost 9 in 10 Irish consumers say fee of 15c per Laser transaction has been increased in some cases by up to 150%. they have changed spending in order to save on household expenses and are actively undertaking Bank of Ireland, AIB, Permanent TSB and Ulster Bank are all replacing their Laser strategies to save on the weekly shop." cards with the new Visa Debit option.