Carry Out

tippguy

Was down in Cork the other day and decided I'd get a few cans of cider to wash down my quality chips from Lennox's. So as I'm sure many of you know theres a carry out right across the road from Lennox's on college road...I went in and they were out of BULMERS!!! Now to be fair their was druids, Now in fairness an offie without South Tipperary Chardonnay??? As i exited the offie there was loads of gaps around the place. They were missing smithwicks and harp amongst other products.

So I continued to drive out to where I was staying near Douglas and came across another Carry Out. I decided to get my cans here however it was the same story. No Bulmers home here either?? and loads of gaps all over the shop. Not a happy camper as you can imagine. For a finish I just went to Tescos where I was greated by a large display of Bulmers. While I did notice they were out of bier d'or here, that didnt really bother me.

Whats going on with Carry Out. Fair enough being out of one or two lines but these shops looked like they were closing down or something? Anyone know whats happening????????

r0nanf

They've been the victims of excise fraud and are currently in examinership therefore they wouldn't be receiving supply I guess.

Forgot to say, Galvins own the Carry Out franchise

tippguy

does this mean the end for all carry outs??? i'm assuming they all buy their stock from galvins and thus all their stock will be ceased

r0nanf

I'd doubt it, there just might be holes in supply during the examinership

grenache

Do Galvins own the actual Carry Out franchise though? Or just some of the shops? Not all Carry Outs in Cork have Galvins over their door. As regards it going to the wall, those in the know are very well aware who is to blame for Galvin's demise.

*OP, i'm sure you mean Bandon Road, and not College Road.

tippguy

yep your right bandon road. sorry

yes galvin does own the carry out franchise but its exactly that, a franchise. like musgraves for example. their stores must by (almost) everything from them. in the case of galvins being over some doors and not others. he started with his own shops and then branched out

heard barry fitzwilliam (corona) were interested in buyin them out...anyone else heard anything

whocares86

http://www.irishtimes.com/newspaper/ireland/2009/1128/122425 9619716.html
Court winds up drinks importer

A LEADING drinks importer and distributor facing demands for more than €6 million from the Revenue arising from an alleged excise duty fraud has been wound up by the High Court after efforts to put together survival proposals collapsed.
On the application of the Revenue, Mr Justice Brian McGovern yesterday appointed Edmund Cahill provisional liquidator of Galvins Wholesale Ltd, with offices at Blackrock, Co Cork. The company employs 65 people; 52 franchise outlets with their own employees will also be affected.
Rossa Fanning, for Bank of Scotland Ireland, owed more than €2 million, applied for a receiver to be appointed. However, Kelly Smith, for the Revenue, said it wanted a provisional liquidator arising from having served two demands for €6 million.
Galvins has claimed the excise duty demands arose as a result of an excise fraud perpetrated on it. It claims it operated a bonded warehouse and had supplied goods to meet orders, the goods were collected by a delivery agent and retained by the customer. Galvins then received forged confirmation of deliveries into a bonded warehouse in France and Romania. If the deliveries had been made to bonded warehouses, no excise duty would have arisen, it has claimed.
Ms Smith said a provisional liquidator would have more power than a receiver to address issues which might arise from the investigation into the alleged fraud. There were “serious claims” involving customs officers in Ireland, the UK and France, she said.
Counsel said Revenue demands for the €6 million have been appealed to the Revenue Appeals Commissioners but the appeals have not yet been heard.
Galvins was placed under court protection last September after the court heard the company was insolvent but with a reasonable prospect of survival. Its largest trade creditor is Diageo Ireland,owed more than €3.5 million.
Yesterday, Bernard Dunleavy, for the examiner, said talks with a potential investor had continued up to this week but the examiner was told late on Thursday night that the person would not be making an investment proposal. In those circumstances, the examiner was unable to formulate survival proposals and was asking to be discharged and for court protection to be lifted, counsel said.
Mr Justice McGovern appointed a provisional liquidator because a receiver alone would not be able adequately to deal with the issues that could arise in an investigation.

irishvamp90

So was it bad accounting or was it done on purpose?someone explain this to me in simple terms

dereko1969

I would wonder why anyone would travel from Romania and France to buy stock from Galvins bonded warehouse directly. Probably best not to state my true thoughts as it's likely to be sub judice and I don't want to get boards into trouble.

tippguy

word on the papers says that barry fitzwilliam are leadin the takeover bid with comans of dublin joinin in with them. both companies would have huge financial backin. barry fitz own the corona and yagermister brands while comans owns dutch gold, druids cider etc

Sattwa69

Galvins is GONE. The caryout part is being bought by Barrys of Mallow.

The fraud mentioned earlier relates to the movement of goods 'under bond'. This means that goods can travel within a juristiction with the excise duty still outstanding on it. The payment is only due when the goods reach their final destination and are 'taken from bond' to be sold on. Similarily if the goods are being exported then no excise duty accrues to the Ireland Revenue Commissioners, as it is leaving the juristiction. The duty is paid in the juristiction of final destination. When a company is exporting the stock, they MUST know the details of the receiving warehouse, and this is put on the documentation. They cannot just give the goods to a haulier and wave goodbye to them. This is at the heart of the issue between Galvins and the Revenue C.

On another point, I know the salaries paid to most of the directors of Galvins and I believe that this is something which has seriously contributed to the situation the company found itself in. Without naming anyone, 266k to two directors, 175k to another and 107k to a manager in the business is ridulous money for a company of its size and the margins it could generate.

Many good people have lost their jobs through incompetance and greed. its just a pity.

whocares86

Such a shame really. I used know a few people who used work there, they were saying how there was no problem with people jetting around the world or around Europe sourcing wine . also flash company cars and big golf outings were the norm

Whats going to happen christys wines & spirits, they are part of Galvins as well

tippguy

can't see this being good for carry out...according to google barrys of mallow owns the costcutter franchise and with the exception of a few costcutters they are generally dear. me thinks a few shops will pull out of the franchise

Sattwa69

whocares86, you are so right, i did biz with them and it was all the fat cats drinking at the trough.

tipp, i think its ok for carryout now, barrys seem to be good for them and i think barrys were looking to expand anyway

tippguy

still barrys own the costcutter franchise and with the exception of 1 or 2 shops costcutters alcohol displays and offers are quiet poor. Like most costcutters are petrol stations and never exactly have mad deals on slabs or bottles of vodka. i dunno i can't see this working too well. like carry out ran some good offers in the past on corona for example but like these offers were below cost for galvin (i persume) and thats got to be part of the reason why the company fell apart. dunno if barrys will be into sellin below cost

winecarrier

Could be frying pan to fire. Over the last year and a half there have only been 2 new CarryOuts opened and that comes from the Store Locator on their own website.

http://issuu.com/todaysgrocerymag/docs/tgm_jan_2010

Within this online issue of Today's Grocery magazine there is a quote saying 'The group will double the number of off licences to 100 within two years. A move sure to make competitors nervous'.

That's going to be a very tense remaining 2 financial quarters to hit a target of 48 stores!

Molloys Clondalkin

[
Within this online issue of Today's Grocery magazine there is a quote saying 'The group will double the number of off licences to 100 within two years. A move sure to make competitors nervous'.

You do realise that link is over a year old? :eek:

tippguy

molloys i think he's tryin to say that they're showin no signs of opening another 48 stores in now less than 12 months. (I think thats what he's tryin to say not really sure) I've noticed two new stores opened to be fair in Thurles (A year and a half ago) & Roscrea (December of this year) but also that two Carry Out's in Limerick city have rebranded to another new chain..Can't remember the name

Heroditas

I love their selection of beers in the store in Rathborne.
Not overly impressed with the selection of wines but the beers are nice and varied, albeit a tad pricey.

Molloys Clondalkin

Apologies if i took it up wrong
I can understand why they would not open the stores with the way the supermarkets are undercutting everyone now its hard to break even.
Just look at those guys in Galway recently a lot of people lost there jobs and not just in the off licences the ancillary suplliers too who would have relied on thier business.
all we can do is hope the new government reverse below cost selling and let us open to meet customer demand.

BeerNut

Molloys Clondalkin wrote: »

with the way the supermarkets are undercutting everyone now its hard to break even.

The government won't be able stop the supermarkets undercutting everyone. Small traders, even reasonably-sized chains, will never be able to compete with the supermarkets no matter what the government do.

Any small business that sees itself in direct competition with a supermarket is on a loser. Fortunately, small businesses can diversify and offer things that supermarkets will never be nimble enough to do. If more of them looked at their own model instead of blaming Somebody Else they'd be in a better position to survive, IMO.

A ban on "below cost selling", even if it had actual meaning (the last government advisory group said it didn't), would be just another obstacle the supermarkets would find an easy way round. It would serve no purpose other than hit consumers in the pocket and give credence to the neo-prohibitionists who regard all alcohol as a highly dangerous substance needing tighter and tighter controls.

the beer revolu

BeerNut wrote: »

The government won't be able stop the supermarkets undercutting everyone. Small traders, even reasonably-sized chains, will never be able to compete with the supermarkets no matter what the government do.

Any small business that sees itself in direct competition with a supermarket is on a loser. Fortunately, small businesses can diversify and offer things that supermarkets will never be nimble enough to do. If more of them looked at their own model instead of blaming Somebody Else they'd be in a better position to survive, IMO.

A ban on "below cost selling", even if it had actual meaning (the last government advisory group said it didn't), would be just another obstacle the supermarkets would find an easy way round. It would serve no purpose other than hit consumers in the pocket and give credence to the neo-prohibitionists who regard all alcohol as a highly dangerous substance needing tighter and tighter controls.

I don't think it is a black and white as that. I agree that anyone trying to compete directly with the supermarkets is on a looser. I am far from a neo-prohibitionist but I have difficulty swallowing the fact that cheap lager is now often cheaper (without allowing for inflation) than it was 15 - 20 years ago (I remember that a 500ml can of cheap lager was £0.99 in the early 90's).
I do think that below cost selling of alcohol has had a devastating effect on the off trade - even the more inventive niche examples.

I'm sure we all know people who while not really into beer in a big way would favour maybe 4 English ales for €10 or weissbier over bottles of Heineken or Bud but when faced with a case of Stella or Miller at less than €1 a bottle will go that way.
I can't help feeling that it's just too cheap and it has unbalanced the market and I fear that the supply chain will become completely polarized with the likes of Redmond's and The Abbot's being very few and far between and there being nothing between them and supermarkets. That's fine if you live near a specialist shop but many rely on their local offie catering for the mainstream with a small selection of niche beers on the side.

BeerNut

the beer revolu wrote: »

I do think that below cost selling of alcohol has had a devastating effect on the off trade - even the more inventive niche examples.

Are you saying that during the boom years of 2006 through 2008 you saw the number of smaller off licences decline?

the beer revolu wrote: »

That's fine if you live near a specialist shop but many rely on their local offie catering for the mainstream with a small selection of niche beers on the side.

If enough rely on their local offie then their local offie will survive by selling things its customers won't get at Tesco, and offering a personal service that its customers definitely won't get at Tesco. Independent offies need to raise their game and put more work into getting customers through the door and spending money, and there's loads of ways of doing it. If all they can do is stack up boxes of Stella and expect people to walk in off the street and buy it spontaneously then that's just bad business practice.

the beer revolu

BeerNut wrote: »

Are you saying that during the boom years of 2006 through 2008 you saw the number of smaller off licences decline?

Yes, they were struggling and I did see many fail.

BeerNut wrote: »

If enough rely on their local offie then their local offie will survive by selling things its customers won't get at Tesco, and offering a personal service that its customers definitely won't get at Tesco. Independent offies need to raise their game and put more work into getting customers through the door and spending money, and there's loads of ways of doing it. If all they can do is stack up boxes of Stella and expect people to walk in off the street and buy it spontaneously then that's just bad business practice.

But my point is that the supermarket beer is so cheap that people are being swayed away (maybe not you or I but many previous and potential customers) from their local offie.
I am in agreement with you that the uninventive complainers deserve no sympathy but even the 'good' offies are struggling to compete with the cut price beer for sale in supermarkets especially in less densely populated areas.

BeerNut

the beer revolu wrote: »

But my point is that the supermarket beer is so cheap that people are being swayed away (maybe not you or I but many previous and potential customers) from their local offie.

Look at bakeries. Time was, people bought their white pan loaf at the local bakery. When the supermarkets came the baking sector was shaken. A lot of bakeries closed. The ones that survived did so by offering things that the supermarkets could not, and that they could charge more for.

Government price controls on the white pan loaf would not have saved those bakeries.

I think we're seeing the same things with off licences now. Many more will close as trade goes to the supermarkets. The important things are: legislating for higher prices will have no effect but to hurt consumers; and the important thing for individual off licences is not to be the white pan loaf bakery.

the_syco

My local Carry Out (Celbridge, Co. Kildare) sells Koppaberg dearer than the local Tescos. I know this as I regularly buy boxes of the stuff from Carry Out. Why do I do so? Because the beer is stored in their walk-in fridge. The moment I get my 15 bottles of Koppaberg, they're lovely and cold. No waiting for the fridge to cool them. Great when going to a house party, castle party, BBQ party, etc.

The added niche is that there's a Pizza Hut place next door to it. People can order a beer delivery, and add a pizza to it. Pizza & beer delivery can be pretty awesome!

Molloys Clondalkin

Forget about cold beer and even at this point in time me might as well forget about 6 for ten on the mainstream beers.
anyone who knows about the off trade can understand the winner off this latest war will be the first to say 6 cans for a fiver!! bitch and moan as you will but thats reality.

when it comes to craft and world beers then supply is better than price where the winner will be he who has it all under one roof,

gentlemen I hope in a year I can still be here :cool: