Musgrave announces appointment of David O’Flynn to Chief Financial Officer

Musgrave has announced the appointment of David O’Flynn to Chief Financial Officer, a position which will see him join the company Board of Directors as an Executive Director and Company Secretary. He succeeds Tim Kenny, who was CFO and Company Secretary for the previous 12 years.

A chartered accountant and MBA, O’Flynn has over 20 years domestic and international finance experience across food retail & wholesale, as well as the industrial and telecommunications sectors. Prior to joining Musgrave in 2005, he held senior finance roles with leading international companies KPMG, Motorola and Avery Dennison. At Musgrave, O’Flynn has successfully held divisional and Group roles, including interim Group Finance Director and, more recently, Head of Business Development.

Commenting on the announcement, Chris Martin, Musgrave CEO said, “David has made an invaluable contribution to Musgrave since joining the business in 2005. He has already played a key role as part of our Growing Good Business strategy in his previous role as Head of Business Development, with recent accomplishments including leading the acquisition of C.J. O’Loughlin, Allied Foods, and the launch of our partnership with Alibaba which has opened up new export opportunities for Musgrave. His strong track record of leading finance teams and identifying new business opportunities will help us deliver long-term sustainable growth, capitalising on the anticipated expansion of the grocery and foodservice markets across the island of Ireland and Spain.”

“I would also like to thank Tim for his long service with Musgrave and for playing a key role in some of Musgrave’s most significant business milestones during this period, such as the acquisition and integration of the former Superquinn business. Everyone at Musgrave wishes him every success with his new position as CFO with Cairn Homes.”

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Musgrave wins at World Steak Challenge!

The 3rd World Steak Challenge took place recently in London at which SuperValu was awarded Silver for Signature Tastes Hereford Fillet Steak. This followed on from SuperValu successfully achieving Bronze at the event last year.

A record number of entries included 120 products from 17 countries represented by 25 breeds making it a truly international event with keen competition in all categories.

The Award for Signature Tastes Fillet from Kepak reflects the global endorsement of producer standards in our beef supply chain from farmer to processor in addition to the controls Musgrave has in place to continuously monitor quality. Our consumers can be confident that SuperValu beef is the highest quality as endorsed by this latest global Award.

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SuperValu to sell €32 million of home grown Irish potatoes in 2017

SuperValu, the leading Irish grocery retailer, has today announced that it expects to sell €32 million in home grown Irish potatoes this season. Our new season potatoes are grown by Wexford brothers, John and Chris Fortune, second generation farmers based in Kilmore, Co. Wexford.

As long-standing suppliers to SuperValu for the last 15 years, the Fortune brothers are seasoned crop farmers who have been growing Irish potatoes on their family farm for over 30 years. John and Chris also supply SuperValu with baby salad potatoes and are one of the few Irish famers who specialise in growing and harvesting baby potato crops.

Commenting on the announcement, Martin Kelleher, Managing Director, SuperValu said, “As the number one supporter of the Irish agri-food industry, SuperValu is committed to delivering high quality locally-sourced Irish produce to consumers. SuperValu works with more Irish suppliers than any other retailer in the country and our long-term relationships with suppliers like John and Chris allow us to continue to drive the fresh food leadership agenda while giving shoppers the very best in locally sourced fresh food. We look forward to working with the Fortune brothers for many years to come as we continue to fulfil our commitment to supporting local.

Chris Fortune added, “Our relationship with SuperValu is very important to us and has been something we have carefully cultivated over the last 15 years. As second-generation growers, our farm has been building slowly over the last three decades, but developing strong partnerships like this and seeing your product sold in SuperValu stores across Ireland makes all the hard work worth it.”

John and Chris Fortune will provide SuperValu stores across Ireland with a rich supply of New Season Irish potatoes, including Roosters and Queens, with Kerr’s Pinks and Golden Wonders available in stores from August. Renowned for their floury texture and flawless skin finish, SuperValu’s potatoes are superior in taste, having been grown in soil which has been enriched with organic matter.

SuperValu sources from over 2,200 Irish suppliers – more than any other grocery retailer in the Irish market – equating to an annual economic contribution of €2.19 billion. SuperValu continues to command the grocery market in terms of meat quality, with more instore expert butchers than any other retailer, offering an unrivalled shopping experience for consumers.

About SuperValu

SuperValu serves over 2.6 million customers every week and has 219 stores nationwide. Together with its retail partners, SuperValu employs approximately 14,500 colleagues, making it one of the State’s largest private sector employers. 75% of everything on SuperValu’s shelves is sourced in Ireland. SuperValu continues to source locally wherever possible which helps to sustain 30,000 jobs in the Irish economy.

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Musgrave puts cyclists on the spot for safety

Musgrave puts cyclists on the spot for safetyTeams of Musgrave drivers gave their time to assist with a recent HGV road safety awareness event in Limerick in collaboration with Limerick Smarter Travel, Limerick City and County Council Limerick Gardai and Musgrave, and was aimed at reducing incidences of collisions between cyclists and lorries or buses.

Musgrave sent a Centra lorry to the event, which was parked on a pedestrianised street with mats laid out to indicate where the blind spots are on a large vehicle. The purpose was to show cyclists and other road users just how dangerous it is to take for granted that truck drivers can see them from their elevated position.

One of the most dangerous and common situations occurs when a large vehicle is turning left. When positioned on the nearside of the vehicle, a cyclist (who may also be turning left or going straight ahead) may find themselves unobserved by the driver.

During the road safety awareness event members of the public were invited to climb into the driver’s cab and view the road from the lorry driver’s perspective so they could see for themselves that an object that’s easily spotted from the ground can’t be seen at all from a driver’s cab.

It was an eye-opening experience for all involved and was a great way to highlight the dangers in a visual and ‘real life’ way for the public to understand.

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€7 million investment and over 40 jobs to be created at new SuperValu store in Dundalk

SuperValu, the leading Irish grocery retailer, announced today that over 40 jobs will be created at a new SuperValu store in Dundalk, Co. Louth, due to open in autumn 2017. The 17,600 square feet SuperValu Store, representing a total investment of €7 million, will be located in a flagship new retail development at the former Fairways Hotel Site in Dundalk. A further 70 jobs will be supported during the development’s construction phase.

SuperValu Fairways will be the anchor premises of this €25 million development by local Dundalk Developer Wonderglade, which will also include a number of smaller retailer units. The SuperValu store will be operated by Dundalk retailer Richard Tiernan, providing consumers with a tailored local Irish offer, with a range of locally-sourced produce from Louth suppliers including Moran Jams, Kookie Dough and Slig li to name but a few. The new store will also include a butcher counter, fish counter and fresh bakery complemented by in-store experts, as well as ample customer parking.

Commenting on the announcement, Ciara Croffy Property Development Manager with Musgrave said: “As Ireland’s leading grocery retailer with stores in every county, SuperValu is always looking for new opportunities to bring our market-leading offer to consumers across Ireland. In partnership with Wonderglade, we are delighted to announce that SuperValu will be the anchor tenant of phase one of this exciting new development.”

Patrick O’Callaghan of Wonderglade said, “This new €25 million Fairways development will include a number of smaller retail units, a coffee shop, residential units and a hotel when completed. We are delighted to have the support of SuperValu in this ambitious project. As a local company, we are pleased to know that the development will create local jobs, both once complete and during the construction phase, which will be led by local Dundalk firm Denis Williams Design Services and by local Builder Hollywood Developments.”

As the number one supporter of the Irish agri-food industry, SuperValu sources from over 2,200 Irish suppliers – more than any other grocery retailer in the Irish market – equating to an annual economic contribution of €2.19 billion. SuperValu’s Food Academy programme has already helped over 700 small Irish food producers to secure a retail listing, supporting over 1,300 jobs in the process.

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Musgrave announces profit of €73 million for Financial Year 2016*

Pictured: Annual report and review 2016

Musgrave today announced results for financial year 2016. The Group reported sales of €3.7 billion and profit before tax of €73 million*. Net cash was €121 million and shareholder funds were €249 million at year end.

Commenting, Chris Martin, Musgrave Chief Executive said:

“2016 saw a strong performance by Musgrave benefitting from investment in our brands, a clear focus on cost reduction and the delivery of a transformation programme which we initiated in 2014 to turnaround the business and return to growth. Investing in our brands during the recession was a successful strategy positioning us to benefit from recovering economies in the Republic of Ireland, Northern Ireland and Spain.

Our business performed strongly in 2016 with turnover up 3.4% on a constant currency basis and we are well positioned to deliver long-term sustainable growth, capitalising on the anticipated growth of the grocery and foodservice markets across the island of Ireland and Spain.

Our investments in value, range, own brand, digital and in-store design resulted in SuperValu, Centra, Daybreak and MarketPlace occupying market leadership positions in 2016.  We are also innovating with our brands to drive growth. This has included award-winning formats, new concepts, digital innovations and new brands like Frank and Honest – our artisan take away coffee brand – which has been launched in SuperValu and Centra in response to increased consumer demand for freshly prepared food and drink in-store.

We are continuing to drive our business and to look for new opportunities as appropriate. While the business is performing well to date in 2017, we remain cautious as a result of the uncertainty created by Brexit and its potential to slow growth in the Irish food and grocery retail sector.”

Business Review

Musgrave is the leading food retailer and wholesaler in Ireland. Together with our retail partners, the business employs approximately 35,000 people in the Republic of Ireland alone, through our retail brands SuperValu, Centra and Daybreak and our wholesale brand MarketPlace.

In 2016, our strategy of investment in our brands and our focus on staying ahead of the consumer has served us well. This has seen us prioritise food leadership in response to a growing trend for healthier food choices. We have also focused on developing an omni-channel experience to ensure our brands are always on and always open.

Our partnership with local independent retailers remains our key differentiator and because we are uniquely positioned in every community in Ireland, we are ideally placed to understand the needs of our shoppers.

SuperValu consolidated its position as Ireland’s market leading grocery retailer with sales of €2.67 billion for 2016, an increase of 2.4% over the previous year. SuperValu’s fresh food leadership strategy – bringing the best of fresh, quality Irish produce to consumers with a tailored, local offer in every store – continues to act as the core driver of the brand’s performance. In this respect, SuperValu’s Food Academy programme won a Ruban d’Honneur award for Innovation at the highly prestigious European Business Awards.  SuperValu will invest €35 million in store revamps and open two new stores in 2017. A strong focus on retaining consumer loyalty saw the relaunch of the SuperValu Real Rewards loyalty programme with five partners – Bank of Ireland, Electric Ireland, Aer Lingus, Getaway Breaks and e-shops as well as the introduction of a new loyalty app.

Centra is redefining the convenience sector through its ‘Live Every Day’ programme which is focused on developing new in-store experiences as well as making it easier for shoppers to choose healthier food options.  This strategy is delivering and Centra achieved sales of €1.59 billion in 2016, a 3% increase on the previous year’s performance. In 2017, Centra will continue to develop its offer to consumers while refurbishing over 100 stores as part of a €20 million investment programme.

MarketPlace continues to be the largest and fastest growing wholesale supplier to retail, foodservice and SME businesses across the island of Ireland. In 2016 MarketPlace launched a new concept in Cash and Carry of the future with the successful introduction of Food Emporium offering hundreds of new and local products as well as specialist fresh meat, fish and cheese.  In 2017, MarketPlace plans to bring the Food Emporium concept to other locations across Dublin and Belfast.

In Northern Ireland, our brands are performing well. We are focused on becoming the number one consumer choice for convenience shopping by 2018. As part of this agenda, we have invested in 17 new store openings and we are revamping 70 SuperValu, Centra and Mace stores.

Our Spanish regional business also performed well in 2016, marking a turnaround in the performance of that business. We continue to see improvement in the Spanish economy and our Dialprix convenience stores and Dialsur wholesale outlets are benefitting from continued investment in store revamps and an improved fresh offer.

To further grow our business, we are exploring new opportunities that leverage our expertise in developing food retail and wholesale brands. As part of this strategy, in 2016 we announced an  export business to China through a partnership with Alibaba. A flagship SuperValu e-commerce storefront opened in March 2017 on Alibaba’s Tmall Global platform selling directly to Chinese consumers.  We also launched the new foodservice franchise brand called Chipmongers – a modern take on the traditional fish and chipper.  Chipmongers outlets are owned and operated by local entrepreneurs, consistent with our strategy of supporting entrepreneurs operating businesses in their local community. 

Outlook

The grocery sector has come through a challenging period and now faces the headwinds of Brexit. While optimism has been tempered by the recent political and economic uncertainty, the grocery market across the Island of Ireland and Spain is still growing and we also see further opportunity for growth in the foodservice market. The decisions taken during the recession to both invest in our brands and restructure and transform our business means that we are well positioned to deliver long-term sustainable growth.

* Profit before tax excludes exceptional non-cash pension gains of €15.5 million

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