Musgrave-annual-report-2022

Annual Report
eport
& Review
eview 2022
Contents
04
Musgrave at a glance
08
10
Our Chairman’s message
Our CEO’s message
18
22
Retail
Wholesale and foodservice
26
27
Our people
Financial results
04 Musgrave Group Plc | Annual Report & Review 2022
At a glance
Financials Our people
Group turnover Profit before tax Net cash

€ billions € millions € millions
4.7 4.5 116 110 238 193

41,000+
People employed by Musgrave
and its retail partners
gradireland
2022 2021 2022 2021 2022 2021
Musgrave sales Retail sales

€4.7 billion €6.2 billion
Best Graduate Training and
Development Programme –
Business/Management
Deloitte
ROI €3.9bn SuperValu €3.3bn Dialprix €0.2bn

NI €0.6bn Centra €2.3bn Mace €0.1bn
Spain €0.2bn Daybreak €0.3bn
Best Managed Company

Number of retail stores
as of 31 December 2022
ShelfLife Grocery
Republic of Northern Spain Management Awards
Ireland Ireland
SuperValu 222 37 –
Centra 489 102 –
11
Mace – 78 –
Daybreak 300 – –
Dialprix – – 91
SuperValu, Centra, Donnybrook Fair
Donnybrook Fair 6 – – and Daybreak combined
Musgrave Group Plc | Annual Report & Review 2022 05
Musgrave at a glance
Growth Our brands

Irish Quality Food
Great Taste Awards and Drink Awards
New Italian brand
Authentic Italian food brand

Italicatessen acquired
158 15
for SuperValu and Centra combined for SuperValu and Centra combined
National Parenting
Product Awards Creative Retail Awards
500
International expansion
2021
500 SuperValu products stocked at
leading UAE retailer Choithrams
Best Family Friendly Best Food, Beverage and

Supermarket Supermarket Design
for SuperValu SuperValu Knocklyon
New app launch
Frank and Honest loyalty app launch Blas na hÉireann Awards World Cheese Awards
in SuperValu and Centra stores
141 6
€2.25 million invested
Supervalu and Centra suppliers / for SuperValu and Centra combined

producers combined
Sustainability Planet
at a glance
75% 8,373
of SuperValu stores will solar panels installed across
have doors on their SuperValu and Centra stores
refrigeration and all stores and the Musgrave wholesale
will be equipped with LED building in Cork in 2022
lighting by the end of 2025
Growing sustainably every day

An essential extension of our Growing Good Business
purpose is our sustainability strategy, ‘Growing Sustainably
Every Day’, creating a positive and lasting legacy for future
generations.
This strategy is about working with retail partners, suppliers

and customers to make every community a sustainable 96% 100%
community. It is also focused on shifting consumer behaviour of all our fruit and veg, of all non-recyclable black
by making it easier for shoppers to make sustainable own brand, and in-store plastic trays from fresh
choices; and, importantly, we have set a target of reducing packaging in SuperValu and meat and fish ranges have
Centra is now recyclable, been removed in SuperValu
our operational carbon emissions to reach Net Zero carbon
reusable or compostable and Centra
by 2040.
Sustainability Fund
The Musgrave Sustainability Fund was launched in June
2022, providing €25 million to support retailers to make
reductions in their carbon emissions. By December 2022
Musgrave had paid out more than 42% of the Sustainability
Fund, €8,964,916. This has resulted in SuperValu and Centra
stores reducing their carbon emissions by an estimated 3,809
840 100%
tonnes of surplus food of the electricity purchased
tonnes of CO2 representing 42% of the total carbon reduction
has been redistributed by by Musgrave Group is
target for the Sustainability Fund.
Musgrave to a network of from renewable sources
charities and community or is backed by renewable
groups across the country energy certificates
Fund payments % Carbon Reduction
since 2016 in partnership
Dec 2022 Dec 2022 (T C02e)
with FoodCloud
SuperValu 42% 2,094
Centra 42% 1,714
Total 42% 3,809
*Figures for Republic of Ireland

Sustainability at a glance
Partners and affiliations Charity
€1 million
worth of funds and goods
donated by Musgrave,
together with its retail
partners, colleagues and
shoppers to support
Ukrainian people
£200,000
raised by SuperValu and
Centra NI for Action Cancer
€100,000
donated by Musgrave to
Irish Red Cross and UNICEF
to support the Syria and
Turkey earthquake appeal
€65,000
Community raised by Musgrave
MarketPlace for Women’s Aid
€160,000
raised through ‘Musgrave
Gives Back’ for Breakthrough
Cancer Research, AsIAm,
Cork University Hospital
Charity and A Lust For Life
Musgrave was a SuperValu launched Musgrave Northern Ireland
proud supporter of #CommunityIncludesEveryone invested £65,000 in
the 2022 International 2022 campaign installing Automated
Mixed Ability Rugby External Defibrillators (AED)
Tournament (IMART) at various sites across its
locations in NI
SuperValu’s Save the SuperValu and Centra

Bees campaign won in Northern Ireland, in
a Chambers Ireland partnership with Trees
Sustainable Business on the Land, pledged
Impact Award to plant 50,000 trees in
Northern Ireland by 2032
Our Chairman’s
message
The Irish grocery market has faced significant challenges I am proud to say that despite these
post-Covid, marked by ongoing supply-chain issues and obstacles, we delivered a solid set of
results in 2022 thanks to the innovation
increased competition. and hard work of our people, the
passion and commitment of our retail
For our own business and those of our retail partners, partners and through our focus on a
margins have been under significant pressure due to high long-term strategy that includes steady
and focused diversification and channel
inflation, rising cost of goods and operational costs, and expansion.
unpredictable energy prices. Moreover, global supply-
chain disruptions caused by the war in Ukraine and I want to thank our shareholders for
their support of our commitment to
the growing impact of climate change have presented foodservice customers and suppliers
persistent logistical challenges. during the tough years of the pandemic
and its aftermath. In addition to
this being the right thing to do, our
ongoing investment in the sector is an
increasingly important element of the
targeted diversification of the business.
This strategy is underlined by a number
of acquisitions we have made in recent
months and its benefits exemplified by
the growth we have experienced in this
part of the business as the hospitality
sector has bounced back in the last
18 months. We are proud to be Ireland’s
largest foodservice wholesale business,
with seven Musgrave MarketPlace
branches and our growing portfolio of
specialist foodservice brands.
We are acutely aware of the cost-of-

living crisis affecting consumers, and
across business and brands we are
dedicated to exploring all avenues
to provide assistance to those facing
financial hardship. This includes
continuing to invest in value through
discounts on essential items and the
continued expansion of own brand
Nicky Hartery ranges, along with resources to help
shoppers reduce food waste and menu
Chairman, Musgrave
planning to optimise the weekly shop.
Our Chairman’s message
“We delivered a Sustainability remains a top priority,

baked into our development
Looking forward, our priorities remain
clear. We will continue to put a strong
solid set of results roadmap. As well as keeping our
own house in order, our Sustainability
emphasis on our One Musgrave
approach to improve efficiency and
in 2022 thanks to Fund continues to support our retail
partners on their journey towards
make us easier to do business with;
at the same time we will diversify
the hard work and Net Zero. As ever, so many of these
innovative local businesses have
our business and channels to ensure
long-term stability. We anticipate that
innovation of our exceeded expectations, working
in collaboration with our specialist
the challenges related to energy and
supply chains will persist, requiring us
people, the passion teams to lower emissions and waste
through smarter technology, improved
to ramp up our support of outstanding
local suppliers while adopting smarter
and commitment of and more efficient operations, and
helping to drive a range of community
approaches to energy use and more
investment in technology to minimise
our retail partners initiatives. impacts on our partners and vulnerable
communities and support our ambition
and through our At the same time, a central component to be Ireland’s most trusted brand.
of our sustainability strategy is our
focus on a long- continuing support of local Irish In conclusion, I would like to reiterate
producers, not only to ensure quality my gratitude to our dedicated teams,
term strategy.” and food security but also to reduce visionary leadership, and steadfast
our collective carbon footprint and shareholders, whose unwavering
to support vibrant local economies. commitment and support have been
Our strategy details our roadmap to instrumental in driving innovation, and
Net Zero carbon and an independent enabled us to navigate a successful
audit of progress to date. path through challenging times.
Our CEO’s
message
In 2022, just as the world was recovering from the With this in mind, we identified three
pandemic, the devastating war in Ukraine – along with key areas for investment and focus –
mitigating the impact of the energy
rising energy prices and disruptions to supply chains – and cost-of-living crisis for consumers
had a significant impact on businesses and individuals. and our retail partners; addressing the
climate emergency with urgency and
These challenges escalated the cost-of-living crisis and determination; and driving the ongoing
digital transformation of our business
further exacerbated inequalities already exposed during and brands.
the Covid crisis. Such significant headwinds required us
to balance our overarching goal of achieving sustainable Despite the rising costs of doing
business affecting our margins, we
growth with the need to tackle the pressing issues that our have remained steadfast in fulfilling
business, our partners and consumers continue to face. these commitments.
Market conditions
Post Covid, the grocery retail landscape
is gradually recalibrating to a semblance
of pre-pandemic norms. As footfall and
sales levels stabilise, there’s a noticeable
shift in consumer behaviour marked
by a return to customary shopping
patterns, albeit tinged with caution.
Shoppers are displaying a heightened
sense of value-consciousness, a
response to the escalating cost-of-living
fuelled by rising food inflation linked to
various global factors.
At the same time, our sector is currently

facing the most substantial surge in
operational costs in a generation.
Some of these costs, such as labour
expenses, were expected but others,
like the scale of energy price rises and
the cost of goods, rose far beyond
what any of us could have predicted.
Noel Keeley
These changes have posed significant
CEO, Musgrave
challenges for our business and those
Our CEO’s message
of our retail partners, and we anticipate performance also validates the strength
“We remain committed that they will continue to do so for the of our underlying business and the
foreseeable future. However, we are continued positive response from
to investing in our committed to our ambitious plans and retailers and consumers. As long as we
people, our brands, continue to invest in both our brands
and value for consumers.
adapt our channels, anticipate demand
through diversification, and uphold our
and providing support commitment to brand innovation and
At the same time, the reopening of value, we will continue to thrive. We
to our independent hospitality venues across Ireland’s believe this forward-thinking approach
markets in early 2022 has brought not only helped us sustain our overall
retail partners and about a remarkable revival. Unlike business through 2022, but actually
customers.” the grocery sector’s gradual return
to equilibrium, the foodservice and
strengthened it, even during these
challenging times.
hospitality domains are flourishing, as
patrons rekindle their affinity for shared The Group’s resilient financial
moments and culinary indulgence. performance has allowed us to strike
a balance in meeting the needs
As a result, our foodservices business of all our stakeholders. We remain
45,000
has grown at pace, with sales to hotels committed to investing in our people,
and restaurants up 51% on last year. our brands, and providing support to
In fact, we are now Ireland’s leading our independent retail partners and
foodservice wholesale business, customers. Our dedicated colleagues
serving 45,000 customers across the and network of retail partners play
island of Ireland. a pivotal role in addressing the
cost-of-living crisis and the climate
foodservice customers across
Retail trading conditions remain emergency. Through their unwavering
the island of Ireland
challenging, and our 2022 retail passion, commitment and innovative
figures illustrate the scale of that approaches, they consistently deliver
challenge. However, the overall Group value to our customers.
Our CEO’s message
preference for high-quality food-to go

Difficult times, Redefining retail options. To meet this demand, we
solid results Despite the economic challenges, our

are introducing new ranges in our
SuperValu and Centra stores.
retail brands continued to differentiate
I am pleased to report that our in competitive markets and during Centra’s role is continuously evolving,
business achieved solid results in 2022 we focused on building on our adapting to changing work patterns
2022. Despite rising operational costs, winning propositions. in the post-Covid era, which often
ongoing supply chain challenges, and involve working from home. Ireland’s
fiercely competitive market conditions, Our philosophy of continuous leading convenience brand is
our brands performed well. Our Group improvement is evident in the ongoing exceptionally positioned to cater to
turnover amounted to €4.7 billion, a evolution of SuperValu and Centra these new customer habits.
3% increase compared to 2021. as vibrant community hubs, with
upgraded store formats to better Centra stores serve a substantial
Our overall profitability saw some meet the needs of today’s shoppers. urban workforce. With the final lifting
growth, with a profit before tax of We are implementing an ambitious of Covid-19 restrictions in 2022,
€116 million, which is 6% higher than programme to further strengthen employees steadily returned to
the previous year. The Group’s net our SuperValu stores and brand, offices in urban locations nationwide,
assets reached €688 million, reflecting enhancing our fresh food offerings although work patterns have
an increase of €95 million from 2021, and undertaking additional store changed. This trend resulted in a
and we closed the year with net cash renovations, all with sustainability significant increase in demand for
of €238 million. in mind. Moreover, expanding our Centra’s convenience offerings, with
presence in Dublin is a key area of on-the-go breakfast and lunch options
Post-pandemic retail sales declined focus, presenting ample opportunities experiencing a sales boost of almost
overall on the previous year reflecting for store growth. 11% compared to 2021.
the fact that shopping behaviours
have returned to normal following We are attuned to the evolving To better meet demand, we
the pandemic, coupled with tighter needs and trends in the market. announced a €23 million investment
household budgets and intense Specifically, in the past 12 months the in our Centra store expansion
market competition. demand for evening meals has shown programme. This investment will
remarkable growth of more than 20%. enhance our nationwide presence, as
As described elsewhere in this Concurrently, there is a rising consumer we plan to open 18 new stores.
report, we have continued to invest
in value and enhance our retail offer
to reverse this trend and meet the
evolving needs of shoppers. At the
same time, this decline in retail sales
has been mitigated by growth in our
foodservice revenue, validating our
long-term strategic investment in the
diversification of our overall business.
We will continue to grow our retail

and foodservice businesses through
investment and acquisition, as
well as exploring further strategic
diversification as opportunities arise.
€116 million
Profit before tax

Our CEO’s message
“At the core of our At the core of our mission lies a

promise to deliver value to our Disrupting wholesale
mission lies a promise shoppers, which holds even greater
significance in these challenging Our relentless drive to improve our
to deliver value to times. We recognise the strain on offer has had a tremendous impact
our shoppers, which household budgets and the mounting
inflationary pressures that consumers
on the Musgrave MarketPlace
brand, services and operations.
holds even greater face. As a business, we strive to not Over the course of nearly a decade,
only achieve financial success but it has undergone an impressive
significance in these also meet the diverse needs of all our transformation, backed by substantial
challenging times.” stakeholders. investments and close collaboration
with the hospitality sector, resulting in
Indeed, we have implemented robust an exceptional growth of 18% in this
plans to assist shoppers in managing part of the business year on year.
the current economic challenges
through value promotions, money-off The positive response of hospitality
vouchers, extensive own brand range professionals vindicates the significant
of 6,000 products and absorbing support we maintained for them
cost price increases where and when during tough times. Through the many
we can. Simultaneously, we remain challenges the sector faced during
committed to supporting our retail the pandemic, we kept a sharp focus
partners and adapting our operations on maintaining service and availability
to ensure we become a stronger, more for our foodservice and wholesale
efficient and resilient business for the customers, as they grappled with
long haul. the cycle of openings, closings and
Our CEO’s message
business uncertainties which went on This is a diverse foodservice and “We are the partner
into late 2021. We have continued to wholesale offer. It encompasses
work with foodservice customers and high end and value items, healthy of choice to more
suppliers to support them in every way products and treats, multi-cultural
possible. options, food theatres, fresh, chilled, than three-quarters
frozen and dried food solutions, of Ireland’s hotels
Our customer base includes hotels, utensils and more.
pubs, restaurants and more. In fact, and have the
we are the partner of choice to more We are continuing to make significant
than three-quarters of Ireland’s hotels investments in digitally transforming broadest range of any
and have the broadest range of any
foodservice supplier in the market.
the business. Our new online digital
platform now offers customers a
foodservice supplier
This means we can serve every type one-stop-shop for all their business in the market.”
of foodservice customer – from value needs stocking more than 14,000
to high end. La Rousse Foods, for products available for delivery – the
example, serves all 21 Michelin Star largest online ordering service for
restaurants in Ireland. the hospitality and foodservice sector
on the island of Ireland. In fact, the
Following the reopening of hospitality, majority of foodservice sales are
the sector as a whole has experienced
a remarkable and very welcome
now made through the Musgrave
MarketPlace app or online platform.
14,000
recovery, with restaurant sales on
the rise as people eagerly return to
socialising and dining out. Throughout
this resurgence, Musgrave MarketPlace
has played a pivotal role in facilitating products available on our new
this positive trend. foodservice digital platform
Our CEO’s message
Driving growth
and Centra store networks and are
performing well. They have filled a
“We continue to
gap in the growing ‘meal solutions’ grow internationally,
Growth is an essential part of our area, providing high quality, freshly
business, whether that is strengthening prepared ready meals for people who exporting our own
and expanding our existing offerings,
or acquiring new brands to enhance
are pressed for time, but still crave the
flavour of a home-cooked meal.
brand ranges and
and complement our existing ones. Food Academy
Despite the challenging economic At the same time, we are committed to
climate, the ongoing evolution of a growth through strategic acquisitions products to countries
more diversified business model has
strengthened our overall business.
that are right for our business. We
have a growing portfolio of specialist
in Europe, the Middle
The success and exponential growth foodservice brands which now includes East and Asia, where
of Musgrave MarketPlace and our La Rousse Foods, Italicatessen,
foodservices business – the result acquired in 2022, and Ritter Courivaud the demand for high
of more than a decade of sustained
investment and innovation – is
and Town and Country Fine Foods
in Great Britain that we acquired this
quality Irish products
enabling us to continue to invest in and year. Furthermore, we continue to is increasing.”
strengthen our retail brands to deliver grow internationally, exporting our
even better value for consumers and own brand ranges and Food Academy
support shoppers during the cost-of- products to countries in Europe, the
living crisis. Middle East and Asia, where the
demand for high quality Irish products
We have continued to invest in our is increasing. And we are expanding
existing brands and innovate to our retail partnership model for Centra
increase our offerings, for example and Frank and Honest – both award-
our range of Donnybrook Fair ready winning convenience brands – outside
meals are on sale across our SuperValu of the island of Ireland.
Our CEO’s message
solar panels and more energy efficient “Our sustainability

Trusted and refrigeration.
strategy, Growing
sustainable business We have invested a further €8 million
to support retailers in the installation
Sustainably Every Day,
We understand that concerns about the of the new Deposit Return Scheme outlines our ambition
future of our planet have never been (DRS) machines across the country.
greater. As Ireland’s largest private The Scheme is aimed at encouraging to achieve Net Zero
sector employer, and a company that
feeds one in three people daily, we
more people to recycle plastic bottles
and cans. This investment builds on carbon emissions by
bear a responsibility to leave a positive our commitment to support a circular 2040.”
legacy for future generations. economy.
To further our sustainability goals, we Our sustainability strategy, Growing

are continuously advancing our efforts. Sustainably Every Day, outlines
In 2022, we announced a €25 million our ambition to achieve Net Zero
investment in SuperValu and Centra
stores across the island of Ireland as
carbon emissions by 2040 in our own
operations and to collaborate with
€25 million
part of a new Sustainability Fund. This retail partners, suppliers and customers
initiative aims to empower retailers to to achieve Net Zero across the supply
achieve Net Zero carbon emissions. chain by 2050. To accomplish this
This fund has already helped reduce we will continue to focus on three
the carbon footprint of stores by 9% key elements: caring for the planet, investment in SuperValu and
through tangible actions like switching creating vibrant communities and Centra stores as part of our
to LED lighting, as well as installing sourcing for good. new Sustainability Fund
Our CEO’s message
Finally, I would like to thank our

“Our people are our Our people shareholders for their ongoing support
of the business and confidence in
biggest asset, with The success and evolution of our those of us who have the privilege to
deep understanding business and brands has only been lead it.
possible thanks to our people and
of food and beverage, their commitment to work as ‘One As we look to the future, we remain
Musgrave’ – sharing skills, knowledge committed to innovation, meeting
retail and wholesale, and innovation without boundaries. evolving customer demands and
from digital channels Breaking down the barriers of siloed
departments and allowing our teams
navigating the challenges ahead with
passion and determination.
and new product to work across divisions and brands has
transformed the company over the past
development, to supply few years. Our people are our biggest
chain and operations.” asset, with deep understanding of food
and beverage, retail and wholesale,
from digital channels and new product
development, to supply chain and
operations. I want to sincerely thank
the entire Musgrave team for its
hard work and commitment to our
customers and to the business over
the past 12 months. I also want to
thank our retail partners and customers
for their business and their resilience
and adaptability in the face of
unprecedented challenges.
Retail
Food and drink retail is a dynamic, rapidly evolving Our retail partners are at the heart
sector driven by evolving consumer trends and new of our operations, deeply rooted
in the communities they serve and
technologies. In 2022, we focused on three key areas committed to supporting local
across our brands. Firstly, we aimed to provide customers initiatives. They provide unique
with the best value and quality, offering affordable own experiences, differentiating themselves
in a competitive environment through
brand products and special discounts. Secondly, we their deep understanding of the
relentlessly innovated to stay ahead of consumer trends, communities they serve.
enhancing the in-store and online shopping experience
Despite challenging trading conditions,
through new apps and expanding our range of plant- our brands have thrived, delivering an
based and eco-friendly products. Lastly, sustainability exceptional experience to customers,
was embedded throughout our business and brands, whether it’s a quick Frank and Honest
coffee, artisan ingredients from
empowering shoppers to make planet-friendly choices. Donnybrook Fair, or refreshments at a
Daybreak forecourt shop.
NOEL KEELEY
CEO, Musgrave
Driving innovations
in our brands
Edel Russell is Insight and Innovation Director at Musgrave Group.
Here she discusses some of the latest retail trends and how our
brands are responding to them.
The development of our brands is consumers to access what they want, introduced compostable shopping
underpinned by innovation in the when and wherever they want it in a bags and reusable bags made from
service of meeting and exceeding frictionless transaction either in-store recycled materials.
consumer demand. But it’s also about or online. ‘Centra Go’ has been live
anticipating such demand and meeting and underway since October this year. We also know that technology is
our obligations to communities and to This is an app in which consumers can going to be part of our lives to a
the planet. order top up grocery items or their degree unimaginable only a decade
favourite Centra food-to-go options ago. Consumers want fast, easy and
Right now, we’re investing heavily in and have it delivered to their home in frictionless experiences and already have
technology and expertise, diversifying under 45 minutes. more connected devices in their homes
our business and channels to better than ever. Retail will need to respond.
serve all our stakeholders into the The sustainability debate is changing
future. Tracking future trends is an habits too. It’s not just about people We have recently rolled out digital
important part of our work and drives choosing electric vehicles or embracing screens in part of our Centra store
our long-term planning. So, what are recycling. Our shoppers care about network, that deliver relevant and
some of the trends coming down the where their food comes from, how it’s compelling services, offers and deals to
tracks that are influencing our business produced, its carbon footprint and the our shoppers. These media solutions
and brands? packaging it is supplied in, and here will create more engaging and dynamic
we are taking a leadership position. shopper experiences, and provide new
Demographics in Ireland tell us that sustainable revenue streams for our
our population is growing while Right now, we’re supporting our retailers and for Musgrave.
households are getting smaller. We partners to reduce their business
also know that a larger proportion than impacts because it’s here we can have Once upon a time value was
ever of the population is aged over most impact on protecting the planet, synonymous with price, but what ‘value’
65. It’s a more diverse population too taking the technologies and best means isn’t the same for everyone. In a
and one that, more and more, works practice we’ve developed in our own few years’ time brands, wholesalers and
both at home and in offices. By 2030, business and incorporating them into retailers will need to factor in a broader
around 70% of Ireland’s population is their own stores and ways of working. set of variables when trying to create
likely to live in cities, fuelling a different And we’re also helping to make it easier value for customers and shoppers.
way of life and going hand-in-hand and more convenient for shoppers to That takes us back to data-driven
with more social spaces and outdoor make more sustainable choices. personalisation, great service, a better
facilities in urban areas. consumer experience, appropriate and
Our own brand and in-store packaging appealing reward schemes and doing
All of these trends will drive an across SuperValu and Centra will what customers perceive as the right
increased demand for ‘supercharged be 100% sustainable, reusable or thing. Price is only part of the narrative
convenience’ – an expectation from compostable by 2025. We have also in the retail world of the future.
Retail
Fresh, local, value for

money and sustainable
Cormac Quish is the owner of three SuperValu stores in Cork,
including one in Tramore that was bought 26 years ago by his
father and recently completely refurbished, bringing in the latest
sustainability features and upgraded food experience areas.
Our Tramore store underwent a section that we put into our new store, This last year own brand products
massive revamp with sustainability and that is growing at 60% every have been hugely important for us and
a key priority. While the store was week. We also put in sections for the our shoppers, and the Musgrave own
in decent condition, it had become Donnybrook Fair and Happy Pear brands have continued to improve
dated and energy inefficient, resulting product ranges, which are different across all three tiers, from the taste to
in soaring operational costs as types of ready meal, and they have the packaging and the price. This has
energy prices rose. We took action really taken off and surpassed our sales made it really easy for the customer
by installing a fully insulated roof and expectations. With cost-of-living a to make the decision to choose own
solar panels, generating an average of growing issue, we felt there might be brand because obviously there is a
40% of our energy needs. Additionally, challenges in the ready meal market good price difference, but also the
we replaced all refrigeration systems but that hasn’t proved to be the case. quality and the taste is still there.
with efficient CO2-based closed door As long as the product is high quality
systems, consuming less than half the shoppers are going for it. In terms of the future, online will be
energy. New LED lighting illuminates important but I don’t see it taking
the entire store. We’ve always had a strong relationship over the physical stores, we’re still
with our local suppliers, but the seeing that people want to come
Overall, for the year our energy bills are Musgrave Taste of Local concept has into the store, to see and choose the
down about 36%, and we are expecting really helped us tie that all together products, so the store experience is
that saving to increase now all the and deliver a strong message to our really important – we compete and
measures are in place. The difference is shoppers. So, we have a dedicated are successful because we have such a
incredible and has gone a long way to Taste of Local section as well as more good range, more choice and different
reducing the pressure we felt last year generally using local suppliers across types of products in our stores which
when energy prices spiked. the store. shoppers will continue to return for.
I think Musgrave’s Sustainability Fund

has been a good way of motivating
retailers into making the necessary
sustainability changes. The grants
helped with the cost of our upgrades.
Many retailers have used the grant
towards digital Shelf Edge Labels (SELs)
which have been a game changer,
because you’re not wasting a lot of
paper and man hours on constantly
changing the labels, just a click of a
button and the prices are updated.
Our new store has very strong

emphasis on fresh produce; a much
larger and revamped fresh fruit and
vegetable section; meat, poultry and
fish has increased; and the deli has
doubled in size and been brought
up to the front of the store. We have
a larger freshly prepared ready meal
Retail
Ultra convenience, but

with community and the
environment at its heart
Ray Lee and his brother Brendan own three Centra stores, one of which
they purchased in 2022 in Pallasgreen, which they have revamped with
the latest sustainability upgrades. Ray is also a member of the Centra
National Retailers Council.
Since Covid, we’ve seen a surge in One distinctive feature we offer is our systems, low-energy LED lighting, and
socialising and home entertainment, scratch bakery, well-known locally for digital Shelf Edge Labels (SELs), and
creating opportunities to cater to the producing cakes, treats and occasion upgraded the building’s fabric. The
growing demand for ‘at home dining.’ cakes. This showcases the positive Musgrave Sustainability Fund provided
Simultaneously, as people return to aspects of our retail partnerships with grants to support these initiatives.
work and daily life, there’s a significant Musgrave. We work with a renowned In just six months, we achieved a
rise in on-the-go food solutions for brand while creating a unique and significant 47% reduction in carbon
breakfast, lunch and dinner, where we familiar offering for our local customers, emissions, of which we’re immensely
can offer a wide range of options. reflecting our own identity and the proud.
passion of individual retailers.
We’ve invested in developing our These achievements enable us to share
Centra stores, aligning with the Live The community aspect of our brand a compelling sustainability story locally,
Every Day brand positioning. Our is another strength my brother and I as consumers often doubt the actions
focus has been on delivering a ‘fast are truly passionate about. For years, of larger brands. Our tangible efforts
foodie concept,’ offering exceptional we’ve actively supported local sports and visible changes allow us to engage
quality food that’s fast, convenient, clubs, charities and schools, setting shoppers at a local level, explaining the
and accompanied by outstanding us apart from larger retailers. While impact of our actions. Musgrave has
service. The success of Frank and Centra sponsors the GAA nationally, we been at the forefront of sustainability,
Honest and Moo’d has greatly boosted believe it’s our responsibility as retailers and we’ve already made substantial
Centra’s appeal and set us apart from to bring this support to life at a local progress in areas such as packaging,
competitors. Leveraging these in-store level by backing local GAA clubs. with more initiatives in the pipeline. As
brands, we recently introduced Frank retailers, we enthusiastically embrace
and Honest iced coffees, a fantastic In September 2022, we completely these opportunities and will continue
addition, especially during the revamped our Pallasgreen store, making localised improvements to
warmer months. making it more energy efficient. We support our communities and the
installed closed-door refrigeration environment.
Wholesale and
foodservice
Irish food and drink have garnered a reputation for Musgrave MarketPlace is Ireland’s
exceptional quality and taste, both domestically and leading wholesale foodservice
company, serving more than 45,000
internationally. In recent years, this reputation has gained customers, through seven Musgrave
momentum, leading to an increased demand at home MarketPlace branches along with a
and abroad. As a result, our wholesale and foodservice nationwide online ordering platform,
and specialist foodservice brands La
business has seen notable opportunities for growth. Rousse Foods, Italicatessen, Drinks Inc
and more recently Ritter Courivaud,
Town & Country and Doyles Veg Prep.
We have a robust and resilient supply

chain, bringing together thousands
of products, from own brand ranges
to local artisan products, reaching
customers not only across Ireland,
Northern Ireland, Great Britain and
Spain, but also across the globe
including Asia and the Middle East.
In the development of our foodservice

business and brands, we remain
committed to supporting local
suppliers and sourcing top-notch,
locally produced food. In collaboration
with Bord Bia, we have initiated the
‘Green Shoots’ project, an exciting
new initiative to invite pitches from
local Irish businesses. Green Shoots
enables products from local producers
and suppliers to be featured and sold
in Musgrave MarketPlace branches and
on our online platforms.
The first five winning pitches have

already made their mark via our
Musgrave MarketPlace shelves,
showcasing the talents of Vanilla Bean
Patisserie in Cavan, the innovative
Uneek Functional Cheese Company
based in Limerick, and The Cultured
Food Company in West Cork.
Hospitality trends: local,

unique and agile
Clement Pavie is a former chef who has worked in some of the best
kitchens in Ireland and the UK. His CV includes stints at Michelin-starred
Patrick Guilbaud in Dublin and Claridge’s in London. He has worked
with Musgrave for 16 years and for the last 10 has been Customer and
Innovation Manager at Musgrave MarketPlace.
Food hospitality and dining out are the moment. Local is a big one. Our We have many new and innovative
thriving again in Ireland, particularly in customers want quality, local produce. products that help with the labour and
cities. Dublin’s food scene is booming, They want to be able to tell the story skills shortage, for example, ‘semi-
and it’s fantastic to see people behind their dishes and know the made’ fresh products that are of great
enjoying going out, eating and seeing provenance of the food. In Musgrave quality but don’t have to be made from
friends again. MarketPlace and through our partners scratch by the customer if they don’t
in La Rousse Foods, we are delivering have the staff to do that.
Covid was very hard for the hospitality on this, with an expanding range of
sector, but at Musgrave we did products from local artisan suppliers. Our Food Theatres are extremely
everything we could to support our important for our business because
customers during this difficult time. Sustainability is also quite rightly a they bring our offer and range to life.
We offered many online sessions huge preoccupation, and hand-in- They help us stay connected to our
and webinars and, when possible, hand with that has been the trend customer base, and they are a place
we opened the Food Theatres. towards a more plant-based diet. I where we can support businesses. I
We provided support in areas like wouldn’t identify that as specifically see they get a lot of value from it. For
developing takeaway concepts for vegan because plant-based can be for example, some businesses have come
restaurants and helping customers everyone. Lots of people are giving it in wanting help with reducing costs
come up with innovative ideas, such a go, reducing their meat intake but because of inflation rises. I spend time
as creating meal kit boxes that could eating better quality meat when they with them in the Food Theatre kitchen
be delivered. Some businesses fully do, which is more sustainable. Again, looking at cheaper cuts of meat they
embraced the concepts and did very we can support this through more can use, how they can cook them,
well out of it, and I believe it helped plant-based products in our range and and developing recipes to go on their
them survive that difficult period. supporting our customers to develop menus.
plant-based recipes.
Today, many of those restaurants have I think this is a very exciting time for
managed to go back to running normal People are definitely looking for Musgrave because hospitality will
sit-in dining services. The types of more innovative and unique food continue to grow and thrive in Ireland.
restaurants we are seeing are more experiences. For example, Korean Through our foodservice brands,
quirky and unique offerings, places food was very popular two years including La Rousse Foods and
that specialise in one type of dish, like ago, and at the moment, Thai and Italicatessen, we have a huge range of
gourmet burgers, and at the other Mexican cuisines are very popular. For quality, local and specialist products
end of the scale, lots of fine dining but us, it’s about being able to offer our that meet the needs of our customers
delivered in a more casual way. customers that choice and diversity in and the constantly evolving trends
products and ranges to allow them to within the food industry.
There are some key trends going thrive in this diverse market.
on in hospitality and foodservice at
Operating a responsible
and sustainable food and
drink business
Mark Anderson is Culinary Director of Gather and Gather in Ireland, the
fastest growing catering company in Ireland, providing staff restaurants
and food and drink solutions for blue chip businesses across Ireland.
At Gather and Gather, we have local suppliers, sharing producers’ with a price, and it’s vital to educate
enjoyed a fruitful partnership with stories, and managing food waste. people about the value of ethically-
Musgrave for about five years. Every Sustainability is not a marketing sourced and well-produced food.
week, we receive essential items, such decision – it’s our core business ethos,
as dried and ambient products, from crucial to reversing the alarming Food sovereignty will also be a
Musgrave MarketPlace, and more climate trends we face. significant challenge as certain popular
specialised products are sourced fish species are now over-fished, and
through La Rousse Foods. The pandemic brought immense some areas struggle with unsustainable
challenges, with 90% of our business cattle rearing. As a responsible
Our decision to work with Musgrave was coming to a standstill as offices closed food business, we view this as an
primarily driven by its excellent customer during lockdowns. In response, we opportunity to educate our customers
service and the cherished relationship swiftly adapted by venturing into retail and the public on the importance of
we share. Its passion for what it does is products. As we emerged from Covid, consuming locally sourced, sustainable,
evident in its outstanding service and we diversified our business, expanding and high quality produce.
efficient deliveries. Equally important beyond offices to universities, public
to us was Musgrave’s dedication buildings and some iconic venues. The bottom line for me is that our
to supporting local suppliers and partnership with Musgrave has
producers – we share its commitment to Despite the hurdles, we not only been built on mutual trust, excellent
using produce with provenance for the recovered but also experienced service, and a shared commitment
sustainability it offers. substantial growth, garnering a strong to sustainability. We have navigated
reputation for delivering top-notch through challenging times, emerged
Sustainability weaves through our services to our valued clients. stronger, and will continue to focus
entire business, and I firmly believe on providing exceptional services
in being a driving force for positive Looking ahead, we anticipate while addressing vital global food
change. We lead by example, focusing grappling with challenges such as food challenges.
on sourcing better, supporting prices and costs. Quality food comes
A resilient, extensive and

sustainable supply chain
Luke Hanlon, Chief Supply Chain Officer at Musgrave, is passionate
about building a sustainable supply chain. Here he talks about the
unique nature of Musgrave’s supply chain, its logistics capabilities and
the future technology and trends that will shape the industry.
To provide some perspective on Our supply chain is versatile enough business that includes representatives
our supply chain, we make about to cater to diverse customer types, from our retail stores and cash
20,000 weekly deliveries to customers including fast-food outlets, fine dining and carry network. This forum has
on the island of Ireland, totalling restaurants and retail stores. We are successfully reduced electricity usage
approximately a million deliveries a also agile and can rapidly introduce by about 10% compared to last year,
year, involving 170 million cases of new ranges or products because of our offsetting some energy price inflation
food and beverage. With a workforce reach and flexibility. At the same time, and lowering our buildings’ carbon
of 2,700 colleagues spread across 11 we optimise our fleet by collecting footprint by 800 tons annually.
sites and 500 vehicles on the road products from suppliers while making
daily, we serve around 9,000 customers deliveries, reducing mileage, and We are also transitioning to alternative
in various locations. maximising efficiency. fuels, planning to use one million litres
of Hydrotreated Vegetable Oil (HVO)
The design of our supply chain offers Reducing our environmental impact instead of diesel in our distribution
resilience and agility, which has proven is a focal point across our business, fleet this year. By 2025, we aim to
beneficial during various events like particularly in the foodservice aspect, reach 3 million litres and ultimately
Covid, the war in Ukraine, Brexit and where our sustainability credentials make it half of our total fuel usage by
labour shortages. Regardless of the play a significant role in attracting new 2030. HVO offers a remarkable 90%
operating environment, we have partnerships. reduction in carbon emissions per litre,
consistently managed to deliver to all contributing to significant progress in
our customers and maintain service Recently, I chaired the Energy our Scope 1 and 2 emissions.
levels through these crises. Transformation Forum within Musgrave,
a collaborative effort from across the Technology plays a vital role in driving
efficiency and improvements throughout
our supply chain. Automation and AI are
already being utilised to make smarter
supply chain decisions, optimise the flow
of goods to and from customers, and
enhance warehouse productivity and
accuracy; an example of this is the recent
launch of automation in our distribution
centre in Kilcock. Embracing technology
will remain an ongoing process,
continuously enhancing our operations.
In the future, skills and talent

availability will be critical, as AI and
data grow in importance, giving rise to
new roles and careers within the supply
chain. Sustainability will continue to
be a key trend, vital to our customers
and consumers. However, the value will
also gain prominence, as we compete
on price, quality, and value while
maintaining superb service levels.
Our people
Our people are at the heart of our business, and we are As our business evolves and grows,
the need for upskilling and continuous
committed to building a safe, inclusive work environment
reskilling has never been so critical to
that empowers and inspires colleagues to live our purpose success. This digital learning platform
– Growing Good Business – and deliver on our strategy. will help us to identify and develop
current and future skills quickly,
efficiently and sustainably. It will also
enable us to publish learning and career
pathways in an impactful way addressing
key feedback from colleagues.
Colleague wellbeing
We have continued to expand our
wellbeing programme, Be Well, Work
Well, to ensure all colleagues are
supported both in work and at home.
The programme includes a digital
doctor service, onsite mental health first
aiders, e-learning modules, a podcast
series and a comprehensive monthly
programme of initiatives to raise
awareness, educate and encourage
colleagues on topics such as mental
We continue to make progress in health, physical wellbeing and nutrition.
An inclusive culture advancing female participation at
senior levels. Our executive team To further embed a culture of
Our aim is to create a culture where has 25% female participation, up by positive mental health and wellbeing
our people can bring their whole selves 11% versus 2018, with a target to across our business, our Musgrave
to work. We are committed to fostering increase this to more than 30% female Leadership Development programmes
a more inclusive workforce that mirrors participation by 2025. We currently now include a number of wellbeing
the societies and markets in which we have 32% female representation in modules. These educate the leaders of
operate, and a business in which we leadership and senior management our business on the importance of this
embrace and encourage difference to roles, and this will be over 40% in two for themselves and their teams, how
create an inclusive, high performing years. And we have set a target to it can impact personal and business
environment where people can achieve a 50/50 gender split in our performance and what actions can
grow, thrive and realise their desired high-potential talent pool by 2025. be taken to improve or support our
potential. colleagues’ health and wellbeing.
We were the first Irish company Learning and

to partner with the LEAD Network
(Leading Executives Advancing
development
Diversity) which aims to attract, retain
and advance women in the retail and Developing talent in our business is a
consumer goods industry in Europe key priority and over the last few years
through education, leadership and we have been focused on the creation
business development. As part of of more training and development
this partnership, we are working with opportunities for our people, including
LEAD to support and develop internal our new learning and development
colleagues, leveraging its inclusive platform, Musgrave Institute, which
leadership and mentoring programmes. launched earlier this year.
Financial results
2022 financial statements
Consolidated profit & loss account

2022 2021
Notes Total Total
€m €m
Turnover 4,693.1 4,532.5
Cost of sales (3,818.0) (3,695.7)
Gross profit 875.1 836.8
Distribution costs (617.0) (590.8)
Administration expenses (149.0) (142.2)
Other operating income 6.9 8.0
Operating profit 2 116.0 111.8
Net interest income/(expense) 0.1 (1.4)
Profit before taxation 116.1 110.4
Tax charge on profit (17.1) (17.7)
Profit for the financial year 99.0 92.7

Consolidated balance sheet

2022 2021
€m €m
Fixed assets
Intangible assets 74.9 63.3
Tangible assets 465.4 437.0
Investment properties 31.6 33.8
571.9 534.1
Current assets
Stocks 198.7 168.3
Debtors – amounts falling due within one year 565.5 518.3
Debtors – amounts falling due after more than one year 22.2 19.0
Cash at bank and in hand 275.5 221.7
1,061.9 927.3
Debt and finance leases – amounts falling due within one year (12.5) (4.4)
Other creditors – amounts falling due within one year (825.1) (731.8)
(837.6) (736.2)
Net current assets 224.3 191.1
Total assets less current liabilities 796.2 725.2
Bank and other loans – amounts falling due after more than one year (24.6) (24.3)
Other creditors – amounts falling due after more than one year (8.9) (3.3)
Provisions for liabilities (73.4) (66.0)
Pension liability (1.7) (38.9)
Net assets 687.6 592.7
Capital and reserves
Share capital, share premium and capital reserves 34.0 34.0
Revaluation and other reserves 22.0 21.5
Profit and loss account 631.6 537.2
Equity shareholders’ funds 687.6 592.7

Consolidated statement of cashflows

Notes 2022 2021
€m €m
Cash flows from operations 4 199.8 208.3
Corporation tax paid (16.0) (21.2)
Net cash generated from operating activities 183.8 187.1
Cash flows from investing activities

Purchase of tangible assets (95.4) (76.5)
Disposal of tangible assets 8.9 4.9
Purchase of subsidiary (15.8) -

Interest received 2.6 1.6
Net cash used in investing activities (99.7) (70.0)
Cash flows from financing activities
Dividends paid (25.2) (18.6)
Interest paid (2.3) (2.7)
Payments to acquire own shares (8.5) (4.0)
Other cash flows (2.7) 0.9
Net cash used in financing activities (38.7) (24.4)
Increase in net cash 45.4 92.7
Opening net cash 193.0 100.3
Closing net cash 238.4 193.0
On behalf of the Board
Noel Keeley Andrew Keating

Chief Executive Officer Chief Financial Officer
2022 financial notes
1 Statement of compliance
The Group’s reporting period ends on the Saturday closest to 31 December, being 31 December 2022 for
the current year and 1 January 2022 for the prior year. There are 364 days in the current year and 364 days
in the prior years.
The financial statements have been prepared on a going concern basis and in accordance with Financial
Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Ireland” (“FRS 102”)
and Irish law. They are presented in the currency units of the Republic of Ireland, the euro (€).
2 Operating profit 2022 2021
€m €m
Operating profit of the Group has been arrived at after charging/(crediting):

Staff costs 418.0 395.2
Amortisation and impairment of intangible assets 17.4 17.3
Depreciation and impairment of tangible assets 54.7 51.3
Operating lease expense 38.0 34.8
Operating lease income (11.4) (10.3)
Deficit/(surplus) on revaluation of investment properties 2.6 (1.2)
Defined benefit pension gains – net - (0.6)
Environmental sustainability fund cost 8.1 24.9
3 Dividends 2022 2021
€m €m
Dividends paid on ordinary shares:

Ordinary dividends of 35.1 cent (2021: 33.4 cent) per share 19.6 18.6
Special dividends of 10.0 cent (2021: Nil cent) per share 5.6 -
25.2 18.6
4 Cash flows from operations 2022 2021
€m €m
Group operating profit 116.0 111.8

Depreciation and impairment of tangible assets 54.7 51.3
Amortisation and impairment of intangible assets 17.4 17.3
Profit arising on disposals (5.9) (1.8)
Deficit/(surplus) on revaluation of investment properties 2.6 (1.2)
Share-based payments charge 5.8 5.1
Net movement in working capital 9.2 25.6
Currency translation adjustment - 0.2
Cash flows from operations 199.8 208.3

Our values
Our brands
Musgrave Group plc

Musgrave House
Ballycurreen
Airport Road
Cork
Ireland
T12 TN99
Tel: +353 (0)21 452 2100

Email: group@musgrave.ie
Follow Musgrave on LinkedIn
www.musgravegroup.com

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Annual Report

Our CEO’s message

Wholesale and foodservice

Group turnover Profit before tax Net cash

4.7 4.5 116 110 238 193

Musgrave sales Retail sales

ROI €3.9bn SuperValu €3.3bn Dialprix €0.2bn

Best Managed Company

Centra 489 102 –

Growth Our brands

New Italian brand

Authentic Italian food brand

Best Family Friendly Best Food, Beverage and

for SuperValu SuperValu Knocklyon

New app launch

Supervalu and Centra suppliers / for SuperValu and Centra combined

Growing sustainably every day

This strategy is about working with retail partners, suppliers

SuperValu 42% 2,094

Centra 42% 1,714

Total 42% 3,809

*Figures for Republic of Ireland

Partners and affiliations Charity

SuperValu’s Save the SuperValu and Centra

We are acutely aware of the cost-of-

Our Chairman’s message

“We delivered a Sustainability remains a top priority,

At the same time, our sector is currently

Our CEO’s message

Our CEO’s message

preference for high-quality food-to go

solid results Despite the economic challenges, our

We will continue to grow our retail

Profit before tax

Our CEO’s message

“At the core of our At the core of our mission lies a

Our CEO’s message

Our CEO’s message

Our CEO’s message

solar panels and more energy efficient “Our sustainability

To further our sustainability goals, we Our sustainability strategy, Growing

Our CEO’s message

Finally, I would like to thank our

Fresh, local, value for

I think Musgrave’s Sustainability Fund

Our new store has very strong

Ultra convenience, but

We have a robust and resilient supply

In the development of our foodservice

The first five winning pitches have

Hospitality trends: local,

Wholesale and foodservice

Wholesale and foodservice

A resilient, extensive and

In the future, skills and talent

We were the first Irish company Learning and

2022 financial statements

Consolidated profit & loss account

Notes Total Total

Turnover 4,693.1 4,532.5