Sales heroes of 2013

Club partnered with Paramount for one of the most anticipated films of the year, ‘Anchorman 2 - The Legend continues'
Club partnered with Paramount for one of the most anticipated films of the year, ‘Anchorman 2 - The Legend continues'

As we reach the end of year, ShelfLife celebrates the brands that have successfully kept their finger on the pulse of the nation's zeitgeist in order to deliver exactly what consumers want

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Brand Central

13 December 2013

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Sales stars

AT A GLANCE: BEST OF THE YEAR

  • Club is the number one Irish soft drink and Ireland’s most popular citrus drink*
  • The aerosol format makes up 80%** of the total deodorant category and Unilever is the biggest manufacturer in this market
  • Over 70% of consumers prefer the look and feel of Unilever’s new Compressed deodorant product***
  • Goodfella’s is Ireland’s number one pizza maker
  • Maltesers is the number three chocolate brand in Ireland and the fastest growing top five brand in the category at +29% YTD****
  • Delivering €2.3m in its six months since launch, Teasers has been the most successful NPD launch of this decade, driving an average of +26% category growth****
  • Teasers became the number one countline across the entire chocolate category within its first 12 weeks of launch****
  • McVitie’s Digestives is currently worth €7.9m*****
  • McVitie’s was ranked eighth top FMCG brand in Ireland in Kantar Worldpanel’s ‘100 masterbrands at home’ 
  • Launched in 2011 by United Biscuits UK; Oddities grew rapidly to become a £9.8m RSV brand****** after just one year of being on sale 
  • Oddities was voted Savoury Snack Product of the Year in 2013, following a survey of 10,005 people by TNS*******
  • Jacob’s is Ireland’s favourite biscuit brand*******
  • The children’s biscuit market is valued at approx €7.6 million*******
  • Valeo Foods, Jacob’s parent company, has invested over €1 million in the brand launch of Jacob’s J-Os*******
  • The launch of Molson Canadian, marked the first time the lager has been officially launched outside North America, and represented the biggest lager launch in Ireland in over a decade 
  • Tayto is one of Ireland’s most popular Irish brands
  • Extra is Ireland’s most popular gum brand with 4.4% YTD sales growth and growing 8.8% in the latest 12 weeks (Source: MAT Nielsen ST w/e 03.11.2013)
  • Since launch, Extra White Bubblemint has performed well with the Extra White range in over 62% YTD sales growth (MAT Nielsen ST w/e 03.11.2013).
  • The Skittles brand is currently worth €3.5m and in 8% YTD sales growth (MAT Nielsen MT Sept/Oct 2013)

*(Source: Nielsen Total Soft drinks Market Nov 2013)
**(Source: SIG data 52 w/e 24 Nov – includes bodysprays in market)
***(Source: 420 consumers in a Nielsen BASES test – Jan 2011)
****(Source: Nielsen YTD Block CSV Oct 2013)
*****(Source: Nielsen MAT to 14 April 2013)
******( Source AC Nielsen 16.02.13)
*******(Source: Established 25 years ago, Product of the Year is the world’s largest consumer-voted award for product innovation and reflects shoppers’ perception of the most innovative products on the market)
*******(Source: Nielsen September 2013)

ShelfLife‘s Best of the Year round-up celebrates the brands that have worked hard throughout 2013 to keep sales buoyant and growing. Instead of relegating new product development (NPD) and investment in marketing into the shadows during challenging economic times, they have instead delivered sales-boosting innovations. 

Club partnered with Paramount for one of the most anticipated films of the year, ‘Anchorman 2 - The Legend continues'

Club partnered with Paramount for one of the most anticipated films of the year, ‘Anchorman 2 – The Legend continues’

Injecting fun into soft drinks category

Club, the number one Irish soft drink and Ireland’s most popular citrus drink*, with a proud heritage dating back to the 1930s, brought excitement to the soft drink category this year by fully re-launching the iconic Irish brand with a full packaging refresh across the entire 38 SKU range, a new 500ml PET high impact bottle design, a new limited edition flavour Club Passion, a major new ATL campaign in the Ultimate Wingman and a ground-breaking digital campaign through bestbits.ie. This led the brand to market share highs over the summer months. Club then quickly followed up by partnering with Paramount for one of the most anticipated films of the year, ‘Anchorman 2 – The Legend continues’.

This unique partnership put Ron Burgundy on over three million Club 500ml bottles and was supported by a fully integrated marketing campaign including TV, outdoor, radio, in-store display, PR and a strong digital campaign. A 10 second TV commercial featuring Ron Burgundy went live on 18 November.

Club also released limited edition Christmas packaging on its 2L Orange variant this November to create some buzz in-store in the lead up to Christmas. Club is a brand that was invented in Ireland and is made, marketed and sold here.

*(Source: Nielsen Total Soft drinks Market Nov 2013)

The Compressed packaging format has been introduced across the Sure Women, Dove and Vaseline brands

The Compressed packaging format has been introduced across the Sure Women, Dove and Vaseline brands

The Compressed packs last just as long as bigger cans, whilst containing half the gas volume - down from 150ml to 75ml and using up to 28% less packaging

The Compressed packs last just as long as bigger cans, whilst containing half the gas volume – down from 150ml to 75ml and using up to 28% less packaging

Unilever shakes up deos category

Unilever Ireland is continuing its commitment to finding new ways to reduce the environmental impact of its business (as set out in its Unilever Sustainable Living Plan) with the launch of a ground breaking new Compressed packaging format across its portfolio of female aerosol deodorants earlier this year. The Compressed smaller pack is half the size of traditional aerosol deodorants and was introduced simultaneously across Sure Women, Dove and Vaseline in February. It has been supported by a €400,000 cross channel marketing spend throughout 2013 in Ireland.

The new Compressed packs offer the same protection and care and last just as long as bigger cans, whilst containing half the gas volume – down from 150ml to 75ml and using up to 28% less packaging. They also offer greater delivery as they use less propellant; therefore the spray feels a little softer, less cold and drier when applied. A major benefit to retailers, the new packs take up less space on shelf, take up less storage space at the back of a store and offer greater selling density and increased rate of sale as retailers can place more packs directly on to the fixture.

The new Compressed format 75ml cans have the same RRP as the comparable 150ml cans, to demonstrate like-for-like value to the consumer, a core message that is reiterated in on-shelf point of sale. Early customer satisfaction research has shown that over 70% of consumers prefer the look and feel of the new product*.

*(Source: 420 consumers in a Nielsen BASES test (Jan 2011): Over 70% found new Compressed to be a much better product than their current deodorant before and after use)

Stoli's diverse range of flavours can help transform cocktails from ordinary to inspired

Stoli’s diverse range of flavours can help transform cocktails from ordinary to inspired

Stoli

Steeped in Russian heritage

Stolichnaya, more popularly known as "Stoli," is the number five vodka brand worldwide. Steeped in Russian heritage and widely renowned for its passion and expertise in crafting one of the most distinctive vodkas in the world, Stoli was the first vodka in space in 1975 and was the first vodka used in a martini competition in 1934 at the Waldorf Astoria in New York.

Stolichnaya produced the first line of premium flavoured vodkas in 1962 and continues to lead the flavour revolution through its innovation, quality and craftsmanship. New Stoli flavours available in Ireland include the Stoli Chocalat Razberi, Stoli Hot and Stoli Sticki. Stolichnaya says it has the largest range of flavours available.

This winter Stoli launched its new product line, the Stoli "Night and Day" edition. Stoli Night and Day will come in a glow in the dark bottle.

The ‘Graham's trio' including the 2011 Vintage Port, Graham's Fine Ruby Port and Graham's Late Bottled Vintage Port, all offer a high quality option

The ‘Graham’s trio’ including the 2011 Vintage Port, Graham’s Fine Ruby Port and Graham’s Late Bottled Vintage Port, all offer a high quality option

Port in a (sales) storm

The Symington family is pleased to announce its decision to declare 2011 as a vintage year. This is only the third Vintage Port declaration for all the Symingtons’ port companies since 2000. The 2011 Vintage Ports are said to be of an exceptional quality and are expected to age superbly over the coming decades.

The company states the 2011 Vintage Port has an exceptional depth of colour and concentration. The palate has superb balance, with a powerful and rich bitter-chocolate taste, in hand with wild berry fruit, supported by well-structured tannins that will give these wines the traditional longevity for which the great Vintage Ports are so famous.

Graham’s Fine Ruby Port is full-bodied with youthful freshness and attractive, luscious fruit. Very deep-coloured and intensely aromatic, this port is bottled young so as to retain the assertiveness of the fruit, a recognisable Graham hallmark. Ruby is an everyday port, suitable for enjoying anytime.

Graham’s Late Bottled Vintage Port is described by the brand as a superb wine selected from the finest production of a very good year. However, unlike a ‘declared’ Vintage Port – which is bottled in its second year, ‘LBV’ matures for an average of five years in seasoned oak casks prior to bottling (hence the term, ‘Late Bottled’).

This wood ageing encourages the wine’s development and it is therefore ready to drink sooner than Vintage Port. Graham’s Late Bottled Vintage possesses attractive liquorice and floral aromas and fresh, ripe blackberry fruit flavours. It epitomizes Graham’s house style very effectively: great rich fruit concentration with spicy complexity and depth, held together by superb structure and balance.

Graham’s LBV is a leader in its category and highly prized by port enthusiasts in Ireland and the UK, traditionally one of port’s most discerning and competitive markets.

Sea

Treasures of the Caribbean

Sea Dog Dark Rum is Ireland’s number one dark rum, a rich, dark, old Jamaican rum produced from the finest sugar cane.

During the middle 1500s, John Hawkins, the leader of the infamous Sea Dogs, plundered the wealthy merchant ships trading in the lawless Caribbean Sea. He helped himself to the richest treasures the Caribbean could offer but there was one prize he cherished above any other: the fine, dark Jamaica Rum – destined for European royalty – rarely found its way past the thirsty Sea Dogs.

For serving suggestions of this leading rum, check out the brand’s Facebook page.

A Winter’s Tale

For many consumers, Sherry is an absolute must in winter, whether for aperitifs, drinks parties or gifting occasions. A Winter’s Tale, comprising a blend of palomino and pedro ximenez varieties, is aged for a minimum of six years to produce a medium-sweet Amontillado with an intense nutty nose, full body and long finish. A versatile, approachable style that’s good with food or by itself.

Ideal gift for scotch connoisseur

Glenfiddich is the most awarded single malt Scotch whisky in the world, having won more awards at the International Wine & Spirits Competition (IWSC) and International Spirits Challenge (ISC) than any other single malt since 2000; which the brand believes is a true reflection of the passion, integrity and innovative spirit that have been passed down through the generations.

The Glenfiddich 12 Year Old single malt makes the ideal gift for a scotch connoisseur this winter, though the 15 Year Old and an 18 Year Old Scotches are also available in Ireland for that very special whisky aficionado.

Interesting ingredient combinations

Since Fusion and Street launched in January, the street food inspired soup brand has attracted consumers to the soup category in significant numbers. Its unique recipes, inspired by the flavours of exotic cities from Bangkok to Mumbai, have brought a new distinctive dimension in fresh soup for hungry soup lovers. The launch was supported by a significant campaign with stories of everyday life which prompted consumers to take to social media platforms to find out more. Fusion and Street’s plans for 2014 include some NPD and a new campaign.

Goodfella's is Ireland's number one pizza manufacturer

Goodfella’s is Ireland’s number one pizza manufacturer

A slice of Italy

Goodfella’s Pizza, Ireland’s number one pizza makers launched another new tasty product this year, its brand new Extra Thin pizza range. The new 10" pizza, has a feather light 4mm base and is infused with olive oil offering a lighter, crispy eat with only 10-12 minutes cooking time, perfect for those special ‘me time’ moments.

The Extra Thin range comes in three variants of Vegetable & Goats Cheese, Mozzarella & Pesto and spicy Chorizo & Pepperoni.

Goodfella’s Pizza company has been rolling out dough in Ireland for over 20 years, with seven ranges catering for all tastes.

NPD gets off to a flying start

Launched as recently as September this year, Lambrini Cider has been a great addition to the successful Lambrini brand and has already made a significant mark on the off-trade.

The United Wine Merchants distributed brand has received strong marketing support throughout Ireland, helping the NPD get off to a great start.

The drink is available in three flavours – Strawberry and Elderflower, Blackberry and Raspberry and Cherry and Apple. United Wine Merchants has marketed the variants through a series of consumer activities, including:

• Sampling to over 1,000 VIPs at the Wedding Journal Show in Dublin
• Giving four Irish fashionistas a money can’t buy experience at Liverpool Fashion Week with a VIP trip to the show
• Launching a ‘Bodyguard’ app for iPhone and Android users. The app features a range of functions including an alcohol unit counter that calculates the amount of alcohol in a drinks list to help encourage responsible drinking this Christmas

United Wine Merchants is planning a range of events and innovative marketing campaigns to continue to grow the brand in 2014.

Food and Drink Exporter of the Year

Ireland’s gourmet chocolatier, Lily O’Brien’s, has won the Export Industry Food and Drink Exporter Award 2013, which was presented to Lily O’Brien’s managing director Eoin Donnelly at a recent gala award ceremony in Dublin. Bord Biá sponsored this award.

"Lily O’Brien’s Chocolates are doubly delighted, to have been nominated and then also win the Food & Drink Exporter Award 2013. It wouldn’t have been possible without the support and dedication of all our staff who have been instrumental in the creation of our great tasting chocolates and desserts; many thanks to them all," said Eoin Donnelly, managing director, Lily O’Brien’s.

Since 1992, Lily O’Brien’s has been passionately creating chocolates in Co. Kildare. Following its success on home soil as one of Ireland’s best-loved premium chocolates, Lily O’Brien’s has grown into a strong international brand with exports accounting for more than 85% of annual turnover. The company employs more than 110 staff at its headquarters in Newbridge and it now exports to a variety of international countries including the USA, the UK and Australia. The company has also recently diversified into the gourmet dessert sector.

Lily O'Brien's has been passionately creating chocolates in Co. Kildare since 1992

Lily O’Brien’s has been passionately creating chocolates in Co. Kildare since 1992

Earlier this year, the company rebranded its product range to place the chocolate centre stage on its packaging; with images showcasing the company’s high quality chocolates. As part of this rebranding, the company also set out to develop new recipes, which resulted in two awards at the Great Taste Awards 2013 for its Key Limey Pie and Death by Chocolate recipes. In 2014, the company will continue to build on its success with a comprehensive marketing campaign to include advertising, consumer promotions, PR and online activity. 

Say hello to tasty new treats

In September this year, Lindt Chocolate Ireland launched a brand new chocolate range called Lindt Hello and caused quite a stir. 

Bursting with personality and made with the tastiest ingredients, Irish Chocolate lovers said hello to four new Lindt flavour combinations; Cookies and Cream, Strawberry Cheesecake, Caramel Brownie, and Crunchy Nougat. The range of goodies includes an array of different formats and flavours to suit every occasion.

The Hello bars (100g) comprise of 10 creamy ‘pillows’ of tastiness, perfect for sharing at a RRP of €2.79.

The Hello Treat Bars (39g) are an ideal choice for a treat on-the-go (RRP €1.29).

The Hello Gifting Range (45g-250g) is a boxed collection with different flavours and types to choose from, including the Hello Thank You box (45g), the Hello Heart Tin (45g), the Hello Cube (250g) and the Hello Thins (Ultra thin chocolate) (125g). RRP €3.49 – €9.99.

Facebook – www.facebook.com/lindtchocolateireland  Twitter – @Lindt_IRL

Teasers has proved the most successful NPD launch of this decade, driving an average of +26% category growth

Teasers has proved the most successful NPD launch of this decade, driving an average of +26% category growth

Most successful NPD of the decade 

Maltesers is the number three chocolate brand in Ireland and the fastest growing top five brand in the category at +29% YTD. April 2013 marked the introduction of the biggest and most exciting new product launch the confectionery category has seen this decade with the launch of the new Maltesers Teasers bar. This addition to the category created a new way for consumers to enjoy their favourite chocolate treat. Delivering €2.3m* in its six months since launch, Teasers has been the most successful NPD launch of this decade, driving an average of +26% category growth*.

The arrival of Teasers was supported by a heavyweight launch campaign including dedicated TV, nationwide outdoor, press, online advertising and an extensive PR and sampling programme to drive consumer awareness. A significant in-store execution programme, supported by impactful POS material which delivered high impact presence and display at point of purchase, ensured Teasers become the number one countline across the entire chocolate category within its first 12 weeks of launch.*

For more information, visit Facebook.com/maltesersireland.
*(Source: AC Nielsen YTD Block CSV Oct 2013)

Exciting new ranges from McVitie’s Digestives

Enjoyed by Irish families for generations, McVitie’s has a large biscuit portfolio of much-loved iconic brands including McVitie’s Digestives, Jaffa Cakes, Rich Tea, HobNobs and Penguin. McVitie’s has now officially been ranked eighth top FMCG brand in Ireland in a recent report conducted by Kantar Worldpanel. The study tracked shopping behaviour of over 3,000 Irish households; in order to provide a clear picture of the brands’ reach and frequency of purchases.

Cheesecake

McVitie’s Digestives is a much loved brand with Irish consumers and is currently worth €7.9m*. Digestives have all the goodness of wheat with its crumbly texture, original flavour and satisfying nature.

McVitie’s continues to invest in product quality and new product development in order to remain a firm family favourite for generations to come.

Double Chocolate Digestives were launched earlier this year. These are a mix of chocolate flavoured Digestive biscuits with chocolate chips and half coated in milk chocolate for a true choc hit.

McVitie’s also launched a range Digestive Cheesecake creams; Digestives have always been considered an essential ingredient for making a great tasting cheesecake, offering the perfect combination of sweetness and crunch. McVitie’s new range addition takes this intrinsic link one step further by offering consumers a mouthful of cheesecake without all the hard work, to be enjoyed at any time of the day.

Available in two flavours, vanilla and lemon; they consist of a cheesecake flavour cream filling sandwiched between two McVitie’s Digestive biscuits.

*(Source: Nielsen MAT to 14 April 2013) 

OdditiesOddities

Driving snacking category sales

With savoury biscuits representing a strong opportunity for retailers to grow sales, United Biscuits (UB) Ireland launched McVitie’s Oddities, a new range of bite-sized savoury biscuits. The launch of Oddities will accelerate the growth of the savoury biscuits category by attracting new, younger consumers through this fun and engaging product. 

Oddities was developed following rigorous consumer research and is already a proven success in the UK market.

Oddities

Launched in 2011 by UB UK, Oddities grew rapidly to become a £9.8m RSV brand* after just one year of being on sale and received the accolade of being voted Savoury Snack Product of the Year in 2013, following a survey of 10,005 people by TNS.

Available from July in Ireland, McVitie’s Oddities are light and crispy, baked snack biscuits. These tasty bite sized snacks come in a mix of unexpected shapes with no artificial colours or flavours.

McVitie’s Oddites range comprises of three flavours; Smoky Bacon, Salt & Vinegar and Sour Cream & Chive; is available in multipacks of five x 25g packs (RSP €2.49) and is ideal for lunchboxes.

*(Source: Nielsen 16.02.13)

LunchtimeFlatbread

Dip it, top it, love it

McVitie’s Lunchtime is a new range of thin, crispy and tasty flatbreads specially baked by McVitie’s to make every lunchtime even more enjoyable. Made with the finest of ingredients and with only 43 calories per cracker, these thin and crispy crackers are a low calorie alternative you can dip or top for a tasty lunchtime experience.

 

The new launch was supported by a fully integrated above the line campaign including press, TV, internet and PR activity in order to drive awareness nationwide amongst consumers.

With a MRRP of €2.29 per 150g pack, the new range is available in two flavours – Mixed Seeds (pumpkin, caraway and black onion seeds) and Salt & Black Pepper. 

Valeo Foods has invested over €1 million in launching Jacob's J-O's

Valeo Foods has invested over €1 million in launching Jacob’s J-O’s

Say hello to J-O

Jacob’s, Ireland’s favourite biscuits*, introduced Jacob’s J-O’s to the market in September 2013. The brand has successfully captured the attention of the Irish public with its crunchy, creamy biscuits. Made with a cocoa flavoured biscuit base and top and filled with a sweet vanilla cream, the range includes two varieties: vanilla roll pack and milk chocolate covered snack packs.

 

The children’s biscuit market is valued at approximately €7.6 million* and Valeo Foods, Jacob’s parent company, has invested over €1 million in the brand launch. The captivating campaign includes TV, radio, outdoor, digital, an extensive sampling campaign, competitions and eye catching POS. Jacob’s says retailers can expect further innovation from the brand in 2014.

*(Source: Nielsen September 2013)

Largest lager launch of the decade

2013 marked the arrival in Ireland of one of North American’s most iconic beer brands, Molson Canadian.

The launch of ‘Canadian’, as it’s more commonly known, marked the first time the lager has been officially launched outside North America, and represented the biggest lager launch in Ireland in over a decade.

Backed by a blockbuster, multi-million euro promotional campaign rolled out by parent company Molson Coors, Ireland’s fastest growing brewer, Canadian has adorned movie screens and billboards across Ireland, driving instant awareness and demand, accelerating market share growth and increasing sales and revenues for its trade partners.

Fabulous flavours

After a nationwide vote, Tayto, one of Ireland’s most popular Irish brands, launched two new limited edition flavours, bringing a total of six tasty choices to its offering.

A shout out was made by Mr. Tayto on Facebook, for people to volunteer to become a ‘Tayto Top Secret Taste Tester’, and over 6,000 people applied to take part. An elite group of 500 were chosen and sent out a Tayto Tester parcel and when the votes came in, the result was crisp and clear. Two new flavour filled packets of Tayto burst onto the market – Tayto Bacon Melt and Tayto Spare Rib.

To celebrate the new additions, Tayto Park hosted ‘Flavours Day’ on 5 October, where families came and enjoyed a fun-filled day out and entered a competition that saw one family walk away with €3,000, an annual pass to Tayto Park, and a plentiful supply of their favourite Tayto crisps.

The new flavours were available for a limited period only and proved successful.

Extra continues growth momentum

Extra continues to reign as Ireland’s most popular gum brand in 4.4% YTD sales growth and growing 8.8% in the latest 12 weeks (Source: MAT Nielsen ST w/e 03.11.2013). Extra’s strong performance is driven by the launch of Extra White Bubblemint, a new flavour variant aimed at recruiting new chewers to the category.

Approved by the IDA and building on the existing popularity of whitening oral care products, ExtraWhite Bubblemint helps to remove stains and maintain teeth’s natural whiteness. Extra states this since launch, Extra White Bubblemint has performed well with the Extra White range in over 62% YTD sales growth (Source: MAT Nielsen ST w/e 03.11.2013).

Wrigley continues to support the Extra brand with a heavyweight marketing campaign, including 30 weeks’ TV and is set to build on this in 2014, with further innovation planned.

Skittles Confused has proven popular with consumers since launching at the beginning of this year

Skittles Confused has proven popular with consumers since launching at the beginning of this year

Expect the unexpected with Skittles Confused 

The Skittles brand continues to enjoy strong momentum in the Irish market. The brand is currently worth €3.5m and in 8% YTD sales growth (Source: MAT Nielsen MT Sept/Oct 2013). This has been delivered by product innovation and engaging consumer promotions. Maintaining its popularity around the world, Skittles now has 25 million fans on Facebook, which places the brand within the top 10 global Facebook pages.

Launched at the beginning of the year, Skittles Confused continues to surprise consumers with flavours that don’t match the colour. Skittles Confused has proven popular with consumers since launch and continues to perform well with a strong rate of sale and consumer offers to drive trial.

Skittles supports three top selling variants including Fruits, Crazy Sours and Confused and all three variants are available in 55g and 174g formats. The brand states retailers can look forward to more news which will drive further sales penetration and profits in 2014.

Programmes such as 'Show Me I.D - Be Age Ok', are a viable alternative to the introduction of plain packaging on tobacco products

Programmes such as ‘Show Me I.D – Be Age Ok’, are a viable alternative to the introduction of plain packaging on tobacco products

The plain facts

In May 2013, the Department of Health announced its intention to introduce plain packaging for tobacco products in Ireland. Following the announcement, Minister for Health James Reilly stated his belief that the introduction of plain packaging will, "increase the effectiveness of health warnings; reduce false health beliefs about cigarettes; and reduce brand appeal particularly among youth and young adults."

Recently in November, the ‘general scheme’ for plain packaging was published. A consultation period is now expected to take place with all interested stakeholders, providing an opportunity to share their views and opinions on the many unintended consequences of the proposed introduction of plain packaging in Ireland.

Illicit trade of tobacco products

Firstly, the illicit tobacco trade is expected to rise if plain packaging is introduced.

Ireland currently has one of the highest rates of illegal trade in tobacco products in the EU. According to government figures some 20% of tobacco sales in Ireland are non-Irish duty paid. Criminals are reportedly generating EUR*3 million per week from illegal tobacco sales and these revenues are being used to fund other illegal operations.

Standardising cigarette packs will only provide an opportunity for criminals to import more products and further hamper the efforts of law enforcement in the detection of what is counterfeit from what isn’t. Complex packaging does act as a barrier to trade in counterfeiting. Identical, unbranded packs will only serve the interests of criminal gangs and counterfeiters as it will make it easier and cheaper for the underworld to manufacture fakes.

Australia is the only country in the world to have introduced plain packaging. Evidence in the six months after its introduction showed an increase in the illicit tobacco trade from 11.8% to 13.3%. Furthermore, Australia is planning to undertake an impact assessment on plain packaging in December 2014.

Effect on the retail industry

Some 90,000 people are employed in tobacco-related retail, and it is estimated that the annual retail losses in turnover and ancillary sales due to the illicit trade is more that €450 million.

Branded products are footfall generators and provide the retail industry with a large majority of its profits. The sale of tobacco products account for some 10-30% of retailers’ turnover, with premium brands bringing customers into stores and generating cross-purchasing.

Plain packaging will have a negative effect on the small retail industry. Should legislation be introduced, premium brands will no longer have a home. This will lead to a commodotisation of the market-place and shift purchasing behaviour, whereby smokers will down-trade – this will affect the level of cash turnover generated in stores.

Tobacco first, what next?

Dr. Margaret Chan, seventh director general of the World Health Organisation publicly stated in June of this year that: "It is not just ‘big tobacco’ anymore, public health must also contend with ‘big food’, ‘big soda’, and ‘big alcohol’."

Plain packaging for tobacco products would set a worrying precedent for other sectors, including the food and drink industries. "This would have major implications for businesses who have invested billions developing their brands."

The alternatives

Ireland has a blanket ban on tobacco advertising, yet according to Eurobarometer figures the number of adult smokers remains at an estimated 29%, a figure that has fluctuated little since 2006.

There are alternatives to the introduction of plain packaging. Programmes such as ‘Show Me I.D – Be Age Ok’, aimed at raising awareness and preventing youth access to tobacco, are also better targeted and have more impact. The best methods to prevent youth access to tobacco in the black market must also be considered.

 

 

 

 

 

 

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