EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Profile: While economic woes still beset Ireland, Musgrave nevertheless has squeezed through
2011 with good results, thanks in part to its acquisition in October 2011 of the 24-store chain
Superquinn for e 229 million. Founded in 1960 by entrepreneur Fergal Quinn, an innovator in the
grocery business, Superquinn’s sales had weakened in recent years, forcing the chain into
receivership with a e 275 million debt. (In 2005, the chain was taken over by Select Retail
Holdings Ltd.) This deal added some 6% to Musgave’s market share of the Irish grocery business,
pushing it ahead of Tesco (of the UK) as market leader. Musgrave’s 2011 net income slipped by
1.4% to e 71 million. Growth also was reported in the Londis brand: almost 1100 new retailers
added to the symbol group; while Daybreak symbol group added 36 more stores. To bolster its
bottom line--and fill the needs of its money strapped customers, Musgrave, beginning in 2012,
inaugurated an ambitious own brand strategy. The firm, in January, rolled out a new SuperValu
Daily Basic product range of everyday living and cooking products, promising savings on average
of 60% over leading brands. (Shoppers could save e 30 per week with the basics range.) The
following month, Musgrave embarked on the biggest product launch in its history: a new
SuperValue Range of more than 1,500 everyday essential products, priced at 33% less than
equivalent branded products. This range, launched in SuperValu stores throughout Ireland,
subsequently spread into Budgens and Londis stores in Great Britain. Musagrave reported that
SuperValu chain had been experiencing a 10% year-on-year sales increase in its own brands. The
launch of SuperValu as a group-wide own brand strategy was expected, by 2014, to grow to e 1
billion+ in sales. In September 2012, the company reported its new partnership with Boots UK
(also in the SOURCEBOOK), where Musgrave would begin supplying Boots stores with the
Supervalu branded products.
UPDATE: In Januaray 2013, Musgrave launched Ireland’s first grocery shopping app for Android
and iPhone users.
Procurement Contacts: N/A
NASH-FINCH COMPANY
7600 France Ave. South, P.O. Box 355, Minneapolis, MN 55440-0355 USA
Tel: (952) 832-0534
Fax: (952) 844-1231
www.nashfinch.com
Total 2010 Sales: $4.9 Billion -4.2%; Food Distribution Sales: $2.7 Billion -8.7%; Mili tary
Div.Sales: $1.6 Billion +1.6%
Percentage of Sales in Exclusive Brands: 12% (E)