Top stories in the papers this week 15 – 21 May 2012

BWG Group acquires Morris Brothers; Musgrave profits inch down to €71m; 50 jobs lost as Glanbia ends Yoplait franchise

News

21 May 2012

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1. BWG Group acquires Morris Brothers

BWG has completed the purchase of Morris Brothers’ wholesale grocery business for an undisclosed sum. ShelfLife reports the business headquartered in Convoy, Co. Donegal, has annual revenues of approximately €30m and services over 450 retail businesses across the north west of Ireland. BWG has said the acquisition will strengthen its existing wholesale operations, especially in the Donegal, Sligo, Cavan, Mayo and Roscommon region.

2. Musgrave profits inch down to €71m

Musgrave has posted a 1% decline in profits to €71m for 2011. The Irish Independent reports group sales rose 1.6% to €4.5bn, including turnover from the UK and Spain. However, excluding revenue from Superquinn, Musgrave sales actually declined 1%. Company accounts confirmed Musgrave paid €228.8m to buy Superquinn. At the time, Superquinn’s sales were declining at a rate of around 7%, which has now been reduced to approx 4%.

3. 50 jobs lost as Glanbia ends Yoplait franchise

Around 50 jobs are to go at Glanbia’s manufacturing site at Inch, Co Wexford, following the company’s decision to end its franchise agreement with Yoplait. The Irish Times reports the Irish plc has sold back the franchise rights to Yoplait for €18m. Glanbia will continue distributing the product. While the Inch factory will close, farmers who supply the plant will be unaffected, with their milk going to one of Glanbia’s other facilities.

4. Commercial rents have stabilised at half their peak

Commercial rents in Dublin are now stable at about half their peak, according to a new report outlined in the Irish Independent. CBRE research shows prime retail rents in the capital cost around €5,000 per square metre. That compares with €10,000 a metre between 2006 and 2008. Louth reportedly also now has the most retail space per capita, with 1,220 square metres per thousand people – almost double the national average.

5. Wal-Mart shares up 5% despite bribery claims

Wal-Mart’s shares have recovered from their recent 8.2% plunge after a New York Times report uncovered alleged bribes paid in Mexico and a hushed-up internal inquiry. The Irish Times reports investors were pleased with the US division, where sales at stores that have been open for at least a year rose 2.6% in the first quarter. The rebound follows Wal-Mart’s reversal of its inventory reduction plan, which caused customers to defect to the chain’s rivals.