NACS Magazine November 2021

convenience.org | NOVEMBER 2021

The 2021 NACS Show reunited the industry.

THE NEXT BIG THINGS

Must-Sees and Insights From the Show

COOL NEW PRODUCTS

The Top 10 Picks

Local, State and Federal tobacco taxes and restrictions on the sale of tobacco products can hurt your business. Governments often pass new laws quickly, so you need to stay informed about what is happening in your area. You and your business matter and making your voice heard is crucial to our success in fighting for fair tobacco policies.

Take this survey to learn more about how you can get involved

TAKE SURVEY CLICK HERE

Provided on behalf of Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, and Helix Innovations. ©2021 Altria Group Distribution Company | For Trade Purposes Only

NOVEMBER 2021

36 38 42 48 56 62 Cover Art by Beyond Definition STAY CONNECTED WITH NACS

 @nacsonline  facebook.com/nacsonline  instragram.com/nacs_online  linkedin.com/company/nacs Subscribe to NACS Daily—an indispensable "quick read" of industry headlines and legislative and regulatory news from Washington, along with knowledge and resources from NACS, delivered to your inbox every weekday morning. Subscribe at www.convenience.org/NACSdaily.

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70 74 80 82

e Got This!

W After two years apart, the NACS Show took place live and in person last month.

Joyous Reunion A Retailers and suppliers celebrated being together— at last—at the NACS Show. hare the Learnings S Show-goers found insights and inspiration in education sessions. ain Stage Magic M General session presenters shared best-in-class strategies and personal stories to help retailers navigate and thrive in today’s marketplace.

I deas That Grow From giving back to amplifying sustainability to innovating new concepts, the 2021 Ideas 2 Go c-stores are industry pacesetters.

Nice

vs. Vice (the 2021 Edition)

Health-focused Frank Beard and Gas Station Gourmet’s Al Hebert reunite to share their snacking finds from the expo. he Top 10 T NACS Show retailer attendees voted, and these new products stood out. lectricity, Oil and Water E A few (of many) fueling highlights from the NACS Show. rotect and P A Q&A with PDI.

Defend

eat Snack Sales Sizzle M New flavors and healthier options are broadening the appeal of the subcategory once marketed to outdoorsmen.

NOVEMBER 2021 |

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NOVEMBER 2021

What separates me from other convenience stores is that I found a niche market.

Consumers are looking for great tasting and convenient options, which is a segment wine can win.

P.102

IDEAS 2 GO, P. 32

08 From the Editor 12 NACS News 20 Good Work 24 Inside Washington

Biden looks to cap pass-through business income deductions and hike federal tobacco taxes; methane: the most powerful greenhouse gas.

94 Gas Station Gourmet

In hard-hit Houma, Louisiana, Buchiki’s looks to rebuild three c-stores.

98 Global Trends

With about 20,000 stores across Thailand, the convenience channel has more potential for growth.

Category Close-Up 102

Driven by restaurant closures and packaging inroads, wine sales surge.

Back Page 108

32 Ideas 2 Go

Arroyo Shell built a loyal following with its wide selection of beer.

88 Cool New Products 2

| NOVEMBER 2021

PLEASE RECYCLE THIS MAGAZINE The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

CONVENIENCE.ORG

yellowimages.com/DANIL

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convenience.org/hrforum convenience.org/hrforum when registration opens

EDITORIAL Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org Sara Counihan Contributing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Frank Beard, Sarah Hamaker, Al Hebert, Pat Pape, Keith Reid DESIGN Beyond Definition www.beyond-definition.com

Sign up to be notified when registration opens Sign up to be notified HR Professionals, join us at the NACS HR HR Professionals, Forum where you’ll join us at the NACS HR network with peers Forum where you’ll facing similar challenges network with peers and learn how others facing similar challenges have developed practical and learn how others solutions to overcome have developed practical challenges. solutions to overcome challenges.

Orlando, FL

March 21-23, 2022 Orlando, FL

ADVERTISING

March 21-23, 2022

Stacey Dodge Advertising Director/Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols Leidich National Advertising Manager/ Northeast (703) 518-4276 jleidich@convenience.org

March 21-23, 2022 Orlando, FL

March 21-23, 2022 HR Professionals, Orlando, FL join us 21-23, at the 2022 NACS HR March Forum you’ll Orlando,where FL HR Professionals, network with peers join us similar at the NACS HR facing challenges HR Professionals, Forum where and learn howyou’ll others join us at the NACS HR network with peers have developed practical Forum where you’ll facing similar challenges solutions to overcome network with peers and learn how others challenges. facing similar challenges have developed practical and learn how others solutions to overcome have developed practical challenges. solutions to overcome Sign up to be notified challenges. when registration opens convenience.org/hrforum

Sign up to be notified when registration opens Sign up to be notified convenience.org/hrforum when registration opens

Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING Erin Pressley Publisher and Vice President, Education & Media (703) 518-4208 epressley@convenience.org Rose Johnson Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

NACS BOARD OF DIRECTORS CHAIR: Jared Scheeler, The Hub Convenience Stores Inc. OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Brian Hannasch, Alimentation Couche-Tard Inc.; Andy Jones, Sprint Food Stores Inc.; Chuck Maggelet, Maverik Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store; Don Rhoads, The Convenience Group LLC PAST CHAIRMEN: Julie Jackowski, Casey’s General Stores Inc.; Kevin Smartt, TXB MEMBERS: Chris Bambury, Bambury Inc.; Frederick Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; Chris Coborn, Coborn’s Inc. Little Dukes; George Fournier, EG America LLC; Terry Gallagher, Gasamat Oil/Smoker Friendly; Anne Gauthier, St. Romain Oil Company LLC; Varish Goyal,

Loop Neighborhood Markets; Douglas S. Haugh, Parkland Fuel Corp.; Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Jigar Patel, Hari 1 LLC, dba Fish River Food Mart; Glenn M. Plumby, 7-Eleven Inc.; Robert Razowsky, Rmarts LLC; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: Brent Cotten, The Hershey Company; Kevin Farley, GSP STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

NACS SUPPLIER BOARD CHAIRMAN: Brent Cotten, The Hershey Company CHAIRMAN-ELECT: Kevin Farley, GSP VICE CHAIRMEN: David Charles, Cash Depot; George Ubing, E&J Gallo Winery PAST CHAIRMEN: Rick Brindle, Mondelēz International; Drew Mize, PDI MEMBERS: Tony Battaglia, Juul Labs; Alicia Cleary, Anheuser-Busch InBev; Matt Domingo, Reynolds; Mike Gilroy, Mars Wrigley; Josh Halpern, FIFCO USA; Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Molson Coors Beverage Company; David Jeffco, Krispy Krunchy Foods LLC; Kevin

M. LeMoyne, Coca-Cola Company; TJ Lynch, Hospeco Brands Group; Bryan Morrow, PepsiCo Inc.; Lesley D. Saitta, Impact 21; John Thomas, iSEE Store Innovations LLC; Sarah Vilim, Keurig Dr Pepper; Dean Zurliene, Monster Energy Company RETAIL BOARD REPRESENTATIVES: Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc. STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIRMAN: Brad McGuinness, PDI

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org and at www.convenience.org/Media/NACSMagazine/SubscriptionForm POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2021 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

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1600 Duke Street, Alexandria, VA, 22314-2792

CONVENIENCE.ORG

Premier Manufacturing: Brands Built on Integrity Owned by a cooperative of proud American farmers using the best U.S.-grown tobacco blends among their competitors, Premier provides high-quality, value-priced cigarette brands for the adult consumer.

C-stores across the country are buying in.

Commitment to Quality Premier Manufacturing, Inc. is the consumer products division of U.S. Tobacco Cooperative Inc. (USTC), an American grower-owned marketing cooperative based in Raleigh, NC.

500+ member farmers throughout the Southeast

Members maintain GAP Connections Trackable process includes all aspects of manufacturing under one roof Certification Standards Ensures sustainable, ethical agricultural practices Tobacco processing & stemmery Primary blending / Cigarette finishing

All products made in USA & 100% guaranteed

Robust Partnerships

A Cut Above the Rest

Premier’s support staff prides itself on meeting customer goals with seamless execution in achieving the highest regulatory standards.

Premier products use only top-end tobacco blends.

• Provides sales/service support across the U.S. • Develops POS materials for high visibility • Creates custom sales & merchandising programs • Maintains strong relationships with top distributors

• Partners with top national and regional retail chains

The finest flue-cured tobacco in the world • All U.S. grown • Environmentally sustainable • Compliant with every regulation The best blend among competitors • Highest concentration of flue-cured tobacco • Vibrant color • Blends provide exceptional aroma and flavor experience Manufactured on industry-leading equipment • Laser perforation • Inked code dating • Latest high-tech advancements

Your Trusted Premier Brands Choose the brand that suits your loyal consumers. Each brand features a variety of styles to satisfy every taste.

Contact PremierManufacturing today! www.gopremier.com/contact

CONVENIENCE.ORG

WHAT’S ONLINE | NOVEMBER 2021

Keep the Ideas Empowering the past, present and future of convenience.

We’ve done it for the past 60 years—and we’re just getting started. We’ve helped convenience and fuel retailers from around the world stay competitive and profitable today, while preparing for tomorrow. Renew your membership today, and let NACS help you navigate disruption and future proof your business with access to new resources, products and technologies, exclusive inperson and virtual events, and one-of-a-kind opportunities to make lasting connections.

Renew your membership today. convenience.org/renew

The 2021 Ideas 2 Go program made its debut during this year’s NACS Show.

From frictionless store experiences to innovative foodservice offers, this year’s stores are operating the convenience stores of tomorrow. You can learn from these innovative, forward-thinking stores at www.convenience.org/Ideas2Go. Here’s who you’ll find: • The Market by Tiger Fuel Co. (Charlottesville, Virginia) • Wawa (Wawa, Pennsylvania) • The PRIDE Stores’ 93 Octane Brewery (Chicago) • 7-Eleven’s Evolution Store (Dallas) • Weigel’s (Powell, Tennessee) The Ideas 2 Go video program has featured hundreds of interviews with convenience retailers from more than 40 states and four continents. Check out past Ideas 2 Go series at www.convenience.org/Ideas2Go for innovations that continue to inspire.

Don’t Stop Now

The fun doesn’t stop now that the NACS Show has ended in Chicago! Visit nacs21.mapyourshow.com to discover a complete listing of suppliers that exhibited at this year’s NACS Show. Use this online tool to gather contact information, press releases, demo videos, product brochures and white papers. Additionally, event attendees can still use the NACS Show app to connect with the products that were featured in the Cool New Products Preview Room.

iStock.com/anilakkus

Your Industry Champion for 60 Years

CONVENIENCE.ORG

Go tropical

and heat up your front-end sales.

Offer the flavor that is taking the energy shot category by storm.

• $9 million in sales in the last quarter* • 3rd fastest moving flavor by velocity*

Contact your distributor and order today!

Visit 5hourEnergyRetailer.com to join the FREE program designed just for independent retailers. *Source: Nielsen AOD, 52 Weeks Ending 9/11/2021, Convenience, $/$MM ACV. ©2021 Living Essentials Marketing, LLC. All rights reserved.

FROM THE EDITOR Yao kept L to R: Nancy rg humming, convenience.o son did and Rose John e n r @ acs_onlin interviews fo ies. instagram stor

All the Feels

W Kim Stewart Editor-In-Chief

i ve s t e t ah g e h C r C h e s te e s t h u g s . b

he

It was good tonic for a pandemicweary soul to hear laughter and see joy on so many faces.

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rapping up dinner at an Italian restaurant in Chicago on day one of the NACS Show, my colleague and I were interrupted by a grinning man taking a photo of his dinner companions sitting at the adjacent table.

“I apologize for us being loud,” he said.

“This is the first time we’ve seen each other in two years!” No apology was needed, of course. It was good tonic for a pandemic-weary soul to hear laughter and see joy on so many faces.

A month or two ahead of last month’s NACS Show, a well-meaning person asked me why NACS would even consider hosting the event, given the pandemic, a labor shortage and economic uncertainty. To me the “why” was obvious, but her concerns forced me to do some soul searching. Watch and see what happens, I assured her. You’ll see why the convenience and fuel retailing industry needs the NACS Show more than ever this year.

Everywhere I ventured at McCormick Place during Show week, I saw people who truly seemed glad to be on-site, connecting and reconnecting with their colleagues, listening attentively during the education and general sessions (and shedding a few tears during the general sessions) and discovering what supplier companies have been up to since we last gathered in 2019 in Atlanta. Many posted their reflections on social media under the hashtags NACSShow and WeGotThis. “Amazing,” fantastic,” “extra special,” “electric,” “excited” are some of the adjectives Showgoers used to describe the week.

Art Sebastian, vice president, digital experience, at Casey’s shared his key takeaways in a thoughtful LinkedIn post.

Art and I were classmates at the NACS

L a u re n

Bro o k s an He be r t g o t t d Al his!

Executive Leadership Program at Cornell University this past July, and I was happy to sneak in a quick hello after his panel presented the “Modern Strategies for Customer Engagement and Loyalty” education session. (A shoutout to fellow classmates Mike Broughal of Meijer Inc. and Rodolfo Castillo of AMPM Centro America, with whom I was delighted to reconnect with at the NACS Show.)

“It was great to see so many people from our industry,” Sebastian wrote on LinkedIn, saying that he was humbled, inspired, encouraged and excited by the week. “I shook hundreds of hands and hugged just as many people.

Relationships are still a central part of our industry and business in general. It takes a village to tackle challenges and constantly think about creative ways to serve consumers.”

Standup interviews are always fun, and Rose Johnson and Lauren Brooks of the NACS Media team fanned out across McCormick Place to ask Show-goers about what they’d hoped to discover for our cover story. Meanwhile, Frank Beard and Al Hebert aka, the Gas Station Gourmet, reprised their “Nice vs. Vice” take on their must-sees and eats from the expo halls—Gen Z Water and chicken cracklins, anyone?

Take some time with this month’s issue to recap your experience at the NACS Show—or see what you missed. And put a hold on your calendars for next October.

Vegas is going to be epic.

Cheers, my friends!

CONVENIENCE.ORG

MORE CHOICES. MORE SATISFACTION. MORE PROFIT.

AVAILABLE IN 3 MG OR 6 MG Call 800-367-3677 or contact your Swedish Match Rep to learn more.

For Trade Purposes Only. ©2021 Swedish Match North America LLC

NACS NEWS

Scheeler Leads NACS Board of Directors, Executive Committee

L to R: Kevin Smartt, 2020-21 NACS chairman, passes the gavel to Jared Scheeler, 2021-22 NACS chairman.

J

ared Scheeler, CEO of The Hub Convenience Stores Inc., was named the 2021-22 NACS chairman. He began his term on October 5 during the NACS Show.

The Hub Convenience Stores is a growing chain of six stores operating in western North Dakota’s Bakken oil region. The company has established itself as the first upscale convenience chain based in North Dakota with a strong focus on foodservice and healthy food and snack options. The Hub operates its proprietary food concept called Hub Café and is also a franchisee of Godfather’s Pizza.

Scheeler began his career in the convenience industry in 1998 while attending the University of Minnesota-Twin Cities. He held multiple roles with Minneapolis-based Bobby & Steve’s Auto World prior to founding The Hub in 2014.

Scheeler has been an active partner with the Minnesota Service Station Association, as well

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as the North Dakota Petroleum Marketers Association. In 2013, National Petroleum News named him National Legislative Leader of the Year. In 2015, The Hub won the North Dakota Division of Vocational Rehab Regional Employer of the Year. Scheeler also coaches junior high school basketball and is an avid volunteer for Trinity Catholic Schools, the Leukemia and Lymphoma Society and Special Olympics.

As NACS chairman, Scheeler also leads the NACS Executive Committee, which provides strategic direction and financial oversight to NACS. Committee members are: • Vice Chairman, Treasurer: Don Rhoads, The Convenience Group LLC (Vancouver, Wash.)

• Vice Chairman, Strategic Communications: Ken Parent, Pilot Flying J LLC (Knoxville, Tenn.)

• Vice Chairman, Legislative: Andy Jones, Sprint Food Stores Inc. (Wrens, Ga.) CONVENIENCE.ORG

• Vice Chairman, Member Services: Lisa Dell’Alba, Square One Markets Inc. (Bethlehem, Pa.) • Vice Chairman, Research and Technology: Chuck Maggelet, Maverik Inc. (Salt Lake City, Utah) • Vice Chairman: Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store (Mandaluyong, Philippines) • Vice Chairman: Brian Hannasch, Alimentation Couche-Tard Inc. (Laval, Quebec, Canada) The 2020-21 NACS Chairman Kevin Smartt and 2019-20 NACS Chairman Julie Jackowski also serve on the Executive Committee.

During the meeting, NACS also named new retail members to its Board of Directors: • Frederic Chaveyriat, CEO of MAPCO Express Inc. (Franklin, Tenn.)

• Andrew Clyde, president and CEO of Murphy USA (El Dorado, Ark.) • Terry Gallagher, president of Gasamat Oil Corp./ Smoker Friendly (Boulder, Col.) • Doug Haugh, president of Parkland USA (Charleston, S.C.) • Raymond Huff, president of HJB Convenience Corp. dba Russell’s Convenience (Lakewood, Col.) • Jigar Patel, CEO of Hari 1 LLC, dba Fish River Food Mart (Fairhope, Ala.) The NACS Supplier Board also named new leadership and members. Brent Cotten, senior director, customer and industry affairs at The Hershey Company, was named 2021-22 NACS Supplier Board chairman. In addition, Kevin Farley, COO of GSP, was named chairman-elect.

Storage Tank Safety Resources Wildfires are increasing in size and frequency, and convenience retailers with underground storage tanks (UST) and oil aboveground storage tanks (AST) should take special precautions in the event of a wildfire. The Environmental Protection Agency (EPA), with help from NACS and other groups, has developed a guide to help owners and operators prepare for and respond to the environmental harm that may occur because of partial or fully burned UST systems or oil ASTs and associated piping and appurtenances.

The guide also helps owners and operators return their facilities to service as soon as possible.

The EPA also offers an Underground Storage Tank Flood Guide with suggested practices that may help owners and operators quickly and safely restart UST systems in the event of a flood.

These and other NACS resources are available to help convenience retailers develop or enhance their disaster planning procedures.

For more emergency planning resources, visit the Disaster and Emergency Preparedness page at www.convenience.org/disaster.

NACS Calendar of Events

iStock.com/sanjeri/Thaisign

2021 NOVEMBER

NACS Marketing Leadership Program at Kellogg School of Management, Northwestern University November 14-19 | Evanston, IL

CONVENIENCE.ORG

2022 FEBRUARY

NACS Leadership Forum February 09-11 | Miami Beach, FL

MARCH

MAY

NACS Convenience Summit Asia March 01-03 | Singapore

NACS Leadership for Success May 15-20 | Glen Allen (Richmond), VA

NACS Day on the Hill March 08-09 | Virtual

NACS Convenience Summit Europe May 31-June 02 | Berlin, Germany

APRIL

NACS State of the Industry Summit April 12-14 | Rosemont (Chicago), IL

For more information about these NACS events, visit www.convenience.org/events.

NOVEMBER 2021 |

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NACS NEWS

Compensation Survey Is Open The NACS Compensation Survey for 2021 is now open. Submit your data by December 17, 2021, and you will receive two complimentary licenses for the published State of the Industry Compensation Report (a $698 value) when it’s released next spring.

The NACS Compensation Survey is the only benchmarking survey of its kind specific to human resources in convenience stores. The survey covers the areas of compensation and bonuses, employee benefits, recruiting and retention to allow retailers to benchmark themselves to peers in the industry.

By submitting your data, you can benchmark against industry averages to see how you measure

up, where you are excelling, and what strategies you can use to improve your business through your greatest assets, your people.

The survey fuels the State of the Industry Compensation Report, which provides critical benchmarking data and up-to-date standards in the key human resource categories of compensation, turnover, benefits and recruitment. The report breaks down the newest available information in the convenience industry and is considered an essential guide for HR professionals.

Participate in the survey today at www.convenience.org/compsurvey.

MEMBER NEWS RETAILERS GATE Petroleum Company has promoted Lucas Hildebrand to vice president, finance and administration, secretary and treasurer. In this role, Hildebrand is responsible for the financial reporting Lucas Hildebrand of GATE Petroleum Company. He also provides support for the company’s administrative functions and oversees banking relationships.

GPM Investments LLC, a subsidiary of ARKO Corp., welcomes Justin Odom as senior category manager.

Odom will oversee all center store categories across GPM’s family of community brands.

SUPPLIERS Marco Capurso has assumed the role of CEO at Ferrara Candy Co. Inc., taking over from Todd Siwak, who has moved to Ferrero North America as president and chief business officer.

Marco Capurso

Anheuser-Busch is restructuring its U.S. commercial leadership team. Kyle Norrington, currently president of Labatt in Canada, will assume a new role as U.S. chief commercial officer, overseeing sales and marketing in the U.S. Simon Wuestenberg, currently president of Anheuser-Busch’s wholly owned distributor business unit AB One, has been appointed U.S. chief

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Kyle Norrington

Simon Wuestenberg Benoit Garbe

Marcel Marcondes

sales officer. Benoit Garbe, currently U.S. chief strategy officer, has been named U.S. chief marketing officer, taking over for Marcel Marcondes, who is transitioning to a new role within AB InBev. Hoshizaki America Inc. announced the appointment of Stephanie Wall as vice president regional sales, responsible for sales of Hoshizaki products in the U.S. and Canada.

Stephanie Wall

Impact 21 has welcomed Aaron Simpson as the company’s newest senior principal consultant. Impact 21 also welcomed Joe Letner as business analyst.

Aaron Simpson

Visual Marketing Inc. announced the hiring of industry veteran Tom DeLucia.

DeLucia has joined VMI as an account executive with nearly 30 years in the tobacco industry.

Tom DeLucia

CONVENIENCE.ORG

NACS NEWS NEW NACS MEMBERS NACS welcomes the following companies that joined the association between August 16 and September 15, 2021. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting www. convenience.org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAIL MEMBERS All About LLC Lehi, Utah

Areas USA Miami, Florida Argus Fuels Ltd. dba Robinson's Marina RUBiS Sandy, Bermuda

Ballester Hermanos Inc. San Juan, Puerto Rico www.ballesterhermanos.com

Finlays Lincoln, Rhode Island www.finlays.net

Jasco Products Company Oklahoma City, Oklahmoa www.byjasco.com

Som Friends Inc. dba Som Sleep North Hollywood, California www.getsom.com

Better Horse Inc. dba Pull Start Fire Virginia Beach, Virginia www.pullstartfire.com

Forrester Research San Francisco, California

Kingsley Beverages USA Inc. Cypress, Texas www.kingsleybeverages.com

Spectas Chattanooga, Tennessee www.spectas.global

KrackCorn LLC Englewood, Colorado www.krackcornpopcorn.com

Sprockets Folly Beach, South Carolina www.sprockets.ai

Lamb Weston Naperville, Illinois

Thales Austin, Texas www.cpl.thalesgroup.com

BondAval Insurance Services Inc. Austin, Texas

Frontier Brands LLC dba Frontier Cigars Sarasota, Florida www.frontiercigrs.com

Five Star Food Service Inc. Chattanooga, Tennessee www.fivestarfoodservice.com

Buzzkill Beverages LLC Columbia, South Carolina

Gable Curtis Bay, Maryland www.gablecompany.com

Legend Food Service East Haven, Connecticut www.legendfood.com

CD Financial Co. Herndon, Virginia www.cdf-pos.com

Gold Rush Gaming Hoffman Estates, Illinois www.goldrushgaming.com

Nexba Beverages St Leonards, New South Wales, Australia www.nexba.com

TNT Plastics Inc. Perryville, Missouri www.tntplastics.com

Palmira Gas Inc. Willow Park, Texas

Chill Grand Junction, Colorado www.chill.com

Good Luck Traders Inc. Deer Park, New York www.spycesauce.com

Orchardville LLC dba Frey Farms Keenes, Illinois www.freyfarms.com

Trax Retail Duluth, Georgia www.traxretail.com

Civil & Environmental Consultants Inc. Pittsburgh, Pennsylvania www.cecinc.com

Green Monkey USA Corporation Toronto, Ontario, Canada

Plant Technologies Sunny Isles Beach, Florida www.beaneze.com

Tulip Kitchener, Ontario, Canada www.tulip.com

Rally Brands LLC dba Biolyte Canton, Georgia www.drinkbiolyte.com

Viessmann Refrigeration Systems GmbH Allendorf (Eder), Germany www.cooling.viessmann.com

Pats Travel Center La Porte, Texas San Pasqual Economic Development Corporation dba Horizon Fuel Center Valley Center, California www.horizonfuelcenter.com Taylor Quik Pik Blair, Nebraska www.taylor-oil.com Wild Calf LLC dba The Barn Montana Bainville, Montana www.wildcalf.com

NEW SUPPLIER MEMBERS 1606 Corp Phoenix, Arizona www.1606hemp.com

American Multi-Brand Trading Houston, Texas www.americanmbt.com

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Cliff Thomason LLC dba Ceres Bounty Designer Oils Grants Pass, Oregon www.ceresbounty.com Coin Cloud Las Vegas, Nevada www.coincloudATM.com Cuhaci & Peterson Architects Maitland, Florida www.c-p.com Dulce de Leche LLC dba Las Sevillanas Brand Laredo, Texas www.lassevillanas.com.mx El Chavito Inc. dba Chavito Mex Candy San Diego, California www.chavitomexcandy.com

| NOVEMBER 2021

GSD Distribution LLC Noblesville, Indiana www.thepinkstuff.com Hemp Products-Store Brand Builders LLC New Castle, Indiana www.hempbrandbuilders.com Humetec by Houston Medical Technologies Sugar Land, Texas www.humetec.us Ignition by TELUS Tampa, Florida www.ignition.afsi.com India Globalization Capital Inc. Potomac, Maryland www.igcinc.us Interaction Media Group Roswell, Georgia

Renwood Mills LLC Newton, North Carolina www.Renwoodmills.com SASR Workforce Solutions Raleigh, North Carolina www.sasrlink.com Serigraph Inc. West Bend, Wisconsin www.serigraph.com Shep Digital Solutions Knoxville, Tennessee www.newsbreak.net

Ziip Lab dba Plus Distribution Inc. Malibu, California www.ziiplab.com

RETAIL HUNTER CLUB MEMBERS BRONZE

BP North America Inc. La Palma, California www.arcoampmfranchise.com Phillips 66 Company Houston, Texas

SignArt Inc. Kalamazoo, Michigan www.signartinc.com CONVENIENCE.ORG

NACS NEWS

BY THE NUMBERS

On the Rise As Americans return to work and school, ballgames, concerts and vacations, revenue in U.S. convenience stores has increased by leaps and bounds. In July, year-over-year foodservice sales grew just shy of 15%, driving a 3.8% increase in inside sales, while fuel sales skyrocketed 52.1%.

Looking at 2021’s performance against the last “normal” year of 2019, sales also have strengthened.

Fuel sales in July 2021 increased 17.8%, and inside sales rose 16.2% compared R code Q e th n with 2019.

Sca se the to purcha se a h rc u to p It’s all about what a retailer Report.

NACS SOI can take to the bank, though.

Although sales are strong, direct store operating expenses (DSOE) are rising at a fast pace.

In July 2021, total DSOE rose 16.0%.

At the 2020 NACS State of the Industry Virtual Experience, Charlie McIlvaine, CEO of Coen Markets, and Chuck Maggelet, CEO of Maverik, warned their fellow retailers of impending increases in expenses. It’s clear they nailed that prediction.

July data from the CSX database reveal that three of the largest expenses in terms of dollars have surged since 2019.

• A challenging labor environment has caused retailers to spend more for personnel. Wages and benefits indexed at 118 vs. July 2019.

•M any retailers put off repairs in 2020, and that expense line grew in 2021. Repairs and maintenance indexed at 105, compared with 2019.

•W hen fuel prices and transactions fell in 2020, reduced credit card swipe fees were the silver lining. As most expected, card fees have returned with a vengeance in 2021. July’s average card fees of $9,910 per store indexed at 117 vs. 2019.

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3 DSOE Growth Watchouts vs. July 2019 (Expense growth index 2019=100)

120

100

July 2019 2020 2021

100

105

July 2019 2020 2021

July 2019 2020 2021

118 100

94

105

100

117 90

80

60

40

20

0

Wages and Benefits

Repairs and Maintenance

Card Fees

DSOE

July 2019

July 2020

July 2021

Wages and Benefits

$23,452

$24,708

$27,775

Repairs and Maintenance

$3,346

$3,132

$3,516

Card Fees

$8,497

$7,617

$9,910

Source: CSX; www.csxllc.com

In total, these three expense lines have added just under $6,000 per month to the average store’s DSOE total. Retail members, if you are not comparing your operating expenses to a benchmark like the NACS State of the Industry Report, it’s time to obtain a digital license.

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GOOD WORK

On the Greener Side

The Greater Chicago Food Depository collected 36,006 pounds of food and beverages from exhibitors after the NACS Show.

Fight2Feed, an organization that collects food from restaurants and donations from food distributors, collected 36,700 pounds (33 pallets) of food and beverages.

C

onsumers are more aware of the sustainability practices their favorite brands support— and NACS is no exception.

This year, several initiatives were at play during the NACS Show at McCormick Place in Chicago to reduce the event’s overall carbon footprint.

BY THE NUMBERS

72,706

Pounds of food donated by NACS Show exhibitors

Half-acre

The size of the garden atop McCormick Place, home of the 2021 NACS Show

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| NOVEMBER 2021

TRANSPORTATION This year’s shuttle buses were operated by Kushner & Associates, a recipient of Green Ride Global’s Green Preferred Supplier List that also donates to a variety of carbon-offset programs. Kushner & Associates shuttle bus fleets feature exhaust gas recirculation, biodiesel and ultralow sulfur diesel fuel, 12-speed transmissions that increase fuel mileage by as much as two miles per gallon,

tires that decrease vehicle weight and vertical exhaust systems.

MCCORMICK PLACE The largest convention center in North America, McCormick Place has been designated as a LEED-certified building by the U.S. Green Build Council. Other energy-saving measures include monitoring and tracking HVAC, lighting and plug loads daily to reflect true electricity need.

McCormick Place was the first convention center in the world to receive Green Seal certification for environmentally responsible food purchasing, operations and management. There is also a halfacre garden atop McCormick Place that began as part of the West Building’s LEED certification process. Home to CONVENIENCE.ORG

nearly 100 different varieties of vegetables, fruits, herbs, edible flowers, perennials, native prairie flowers and a small orchard plus 20,000 honeybees, butterflies and worms, the garden yields 8,000+ pounds of seasonal, farm-fresh bounty every year.

FOOD Post-event food and product was donated to the Greater Chicago Food

Depository, a member of Feeding America and Chicago’s Bags of Hope, as well as Fight2Feed, which collects donations from restaurants and food distributors.

This year’s totals include: 72,706 pounds of food donated.

NACS has developed resources to help convenience retailers manage food waste and embark on their own food donation program. Learn more at www.convenience.org/foodwaste.

EG America Honored for Veterans Support Disabled American Veterans (DAV) recognized EG America with three awards during its inaugural Dinner of Gratitude in September. EG America was named Partner of the Year for its strong commitment to DAV’s mission of service to disabled veterans and their families during the past year.

EG America also was recognized with DAV’s National Adjutants Circle and Champions for Heroes awards.

“EG America has made a long-standing commitment to DAV in many ways to support our mission by raising funds and awareness of our organization in their U.S. stores,” said Marc Burgess, CEO of DAV. “Since our partnership began in 2019, EG America has raised more than $1.6 million dollars to help DAV provide services to America’s heroes. EG’s leadership and store teams’ outstanding commitment to the veteran community exemplify how our partners can help amplify the mission in the communities DAV serves.”

During November, EG America is hosting an in-store campaign to mark Veterans Day and honor the service and sacrifice of the brave men and women who have served our country. Team members will ask customers to donate to DAV during checkout. The funds will help DAV show veterans that they are not alone by helping them: • Get the benefits they deserve • Receive transportation to medical appointments • Find meaningful employment • Receive assistance during times of disaster Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf ‘N Jug, Minit Mart, Quik Stop, Tom Thumb and Turkey Hill will participate in the program.

CONVENIENCE.ORG

L to R: Cindy Rantanen, senior VP, foodservice and franchise business EG America; Marc Burgess, CEO DAV; and Nick Unkovic, senior VP, general counsel and secretary EG America, accept awards on behalf of EG America at the Disabled American Veterans Dinner of Gratitude.

“Our partnership with DAV has always been a very important initiative to our company and is fully supported by our guests,” said George Fournier, president of EG America. “We are honored to be recognized and extremely grateful for these prestigious awards from DAV, and our team would like to dedicate these to the hundreds of veteran team members and guests in our more than 1,700 stores across America.”

NOVEMBER 2021 |

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GOOD WORK

Maverik Raises More Than $580,000 for Feeding America In September—Hunger Action Month—customers who frequented their favorite Maverik convenience store generously rounded up their cash transactions to the nearest dollar, resulting in $255,348 in donations to Feeding America, the largest domestic hunger-relief organization in the United States.

September’s roundup campaign adds to Maverik’s $180,767 donation to Feeding America in February and its direct donation in January of $150,000, which brings the company’s total 2021 donation to $586,115.

“We activated a second Round Up campaign this year to help support millions of our neighbors still struggling with hunger due to the pandemic,” said Chuck Maggelet, president and chief adventure guide of Maverik. “We’re overwhelmed and thankful to our customers for sparing their change to help fight this battle together.”

Ninety percent of customer donations that were raised locally stay local, with each region’s collections going to serve food banks that assist people in that same region. Maverik’s donation will be distributed to 15 Feeding America member food banks across 11 Western states where Maverik operates. The remaining donation will support Feeding America’s national strategies to help fight hunger in America.

Maverik has donated nearly $600,000 to Feeding America in 2021 through roundup campaigns and direct donations.

CEFCO Supports Children’s Miracle Network Hospitals CEFCO’s annual Miracle Balloon fundraising campaign benefits Baylor Scott & White McLane Children‘s Medical Center and 15 other CMN Hospitals in Texas, Louisiana, Mississippi, Arkansas, Alabama and Florida. All 200+ CEFCO locations in six states are participating in the campaign through November 16. In 2020, Temple, Texas-based CEFCO and CMN Hospitals celebrated 21 years of partnership. Since 1999, CEFCO has served children in various communities by raising more than $5 million for local Children’s Miracle Network Hospitals located in Texas and other Southern states, including $400,000 in 2020.

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| NOVEMBER 2021

CONVENIENCE.ORG

INSIDE WASHINGTON

Tax and Spend

Biden looks to cap pass-through business income deductions and hike federal tobacco taxes.

T FACTS & FIGURES

16th Amendment

Created the permanent federal income tax

39.6%

The top income tax bracket in the Democrats’ plan

$400,000

Threshold for entering the above-mentioned bracket

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| NOVEMBER 2021

he politics of taxation has deep roots in American history. Our forefathers took on one of the greatest military powers of the 18th century in order to gain independence, largely driven by anger over unfair tax policies. It should be no surprise then that our country didn’t have a permanent federal personal income tax until over a century later. Today, debates centered on taxes and spending are ubiquitous in our elections and in our legislatures.

Even the passage of the 16th Amendment to the United States Constitution, which created the permanent federal income tax, was rooted in politics and political miscalculation.

Around the time of the Civil War, the federal government needed more income so it implemented temporary income taxes, and the United States Supreme Court

even handed down conflicting decisions, once upholding a federal income tax and later rejecting it. At the turn of the century, some more progressive members of Congress sought to implement another federal income tax. Conservative politicians who opposed the tax noted the conflicting Supreme Court decisions and took the political gamble of offering the 16th Amendment, assuming it was unlikely to be ratified by a sufficient number of states. They ultimately lost that gamble in 1913 when the amendment took effect.

Since then, the tax rates as well as business tax rates have fluctuated significantly, particularly in the first half of the 20th century amid the U.S. involvement in both World Wars. While the prospect of raising taxes on Americans has always had some level of political risk, that too CONVENIENCE.ORG

iStock.com/Irina_Strelnikova

BY JON TAETS

has shifted over time. Revenue and spending increases under President Franklin Roosevelt’s administration, while not universally welcomed, were not villainized as much as many proposals to raise income taxes are today. FDR himself was reelected in a landslide victory just a year after the Revenue Act of 1935 passed, and then twice more subsequently prior to his death in 1945.

REAGAN TAX CUTS Fast forward a few decades, in the 1980 and 1984 elections, Ronald Reagan used tax cuts as the foundation of modern conservative orthodoxy. In 1984, for example, Reagan’s Democratic challenger, Walter Mondale, seemed to sink any chances he had to win the election when he said that the only difference between him and Reagan on taxes is that Reagan would not

ONE VOICE This month, NACS talks to Wolfgang Manz, president/CEO, PWM Electronic Price Signs Inc. What does NACS political engagement mean to you, and what benefits have you experienced from being politically engaged?

I’m personally very interested [in political engagement] when it comes to historical aspects because you can learn from history.

When you discuss the future of politics, you can look back at history and see what can happen, and in what direction the political future can follow if a wrong decision is made.

Wolfgang Manz

NACS is a great source to hear firsthand what is going on in the federal government and how this would have an impact on our industry, my customers, my company or even myself. The government relations team helps me better understand how I can use my voice to make a difference.

What federal legislative or regulatory issues keep you up at night?

I am very concerned about taxes and electric vehicles (EVs) and the impact

CONVENIENCE.ORG

those issues could have on the convenience industry. With respect to EVs, there is a big push by politicians to move toward EVs and adding more publicly accessible EV chargers without ensuring that there is a competitive market for EV charging.

In my home state of Texas, for example, convenience and fuel retailers are unable to charge EV drivers for the charging of their vehicles. The ability to resell electricity, for the purposes of charging EVs and not being regulated as if the retailer were a utility, is a critical element in creating a competitive, private-sector-driven marketplace for EV charging. With the focus on EVs and climate change in Washington, it is imperative that our experience and voices be heard.

Your voice can save your business.

Scan the QR code to tell us what’s keeping you up at night and where you’re willing to lend your voice to NACS’ advocacy efforts.

NACS Day on the Hill provides a great opportunity to educate Congress on these issues and others that are important to our industry. As a first-time attendee in 2021, I got to support convenience retailers and share our story directly with our members of Congress. We were able to push the needle forward on our issues. It’s a powerful event that I encourage everyone to attend.

What c-store product could you not live without?

Well, that’s easy, ice cream and peanuts!

NOVEMBER 2021 |

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INSIDE WASHINGTON

Many convenience retailers operating as pass-throughs would be looking at a significant tax increase.

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| NOVEMBER 2021

admit that he was going to raise them.

The comments were reported as Mondale admitting he would raise taxes, without much mention that he accused Reagan of being likely to do the same.

The presidential election of 1992 laid the groundwork for some of the current tax debates. Four years prior, while serving as vice president and campaigning for the presidency, George H.W. Bush famously uttered the line “Read my lips: No new taxes!” Unfortunately for him, as president he ultimately signed into law legislation, passed by Democratic majorities in both houses of Congress, that did in fact raise some tax rates. During the ’92 campaign, Bush’s failure to adhere to that pledge became a factor in his loss to the Democratic governor of Arkansas, Bill Clinton, who often reminded voters of Bush abandoning his own pledge.

Tax and spend policies would become central arguments in each presidential election since then. Republican presidents George W. Bush and Donald Trump made tax cuts for everyone central pieces of their campaigns, and both ultimately delivered across-the-board tax cuts. In both cases though, subsequent Democratic Presidents Barack Obama and Joe Biden argued that those tax cut deals were too heavily weighted toward large corporations and wealthy individuals and didn’t do enough for middle- and lower-income Americans.

After winning the election to succeed George W. Bush, President Obama ultimately rolled back some of the Bush tax cuts, particularly on higher earning Americans. President Obama’s moves overturned much of the political conventional wisdom that had stood since the Reagan days that candidates pushing for higher taxes could not win national elections.

That political change, however, did not alter Republican priorities on taxes.

President Trump successfully ushered another significant tax cut into law in 2017, lowering rates across the board as well as the corporate income tax rate.

While the cuts to the individual rates passed during the Trump Administration are scheduled to expire in 2025, the cuts to the business rates are permanent— although Congress can always pass a new law to change that.

BIDEN ROLLBACK President Biden and his allies in Congress are seeking to roll back aspects of the Trump tax cuts. Echoing the stances of many Democrats over the years, Biden contends that the 2017 tax cuts didn’t do enough for anyone other than large corporations and very wealthy individuals. Biden’s campaign included a pledge of rolling back many of these cuts, but only on Americans earning more than $400,000 per year. It is those plans that are central to the debate over the reconciliation package Congress was debating at the time of this writing. Democrats have proposed significant increases in upper income tax rates and business tax rates in order to pay for increased spending on social programs they have deemed “soft infrastructure.”

Their plan would return the top income tax bracket to 39.6%, while lowering the threshold for entering that bracket to $400,000 per year. What’s more, the Democrats’ plan would cap the deduction of business income available to passthrough businesses, the 199A deduction, at $400,000 per year. As a result, many convenience retailers operating as passthroughs would be looking at a significant tax increase. The Democrats’ plan also CONVENIENCE.ORG

INSIDE WASHINGTON

would increase the tax rate up to 26.5% from the current 21% rate on corporations earning more than $5 million.

Jon Taets is the NACS director of government relations. He can be reached at jtaets@convenience.org.

TOBACCO TAX Other proposals in the package would more directly impact lower income taxpayers. One that is concerning to convenience retailers is the proposal to dramatically increase and expand the federal excise tax on tobacco products.

As tobacco products continue to be one of the biggest-selling categories in the convenience channel, this tax, which will predominantly be borne by those who are decidedly not rich, could have

a significant negative effect on our industry by pushing tobacco sales to the black market.

If passed, the political ramifications of these tax increases will not be known until at least the 2022 midterm elections, and it will be instructive to follow how the public reacts. Clearly, arguing that at least some tax rates should be increased did not prove fatal to President Obama’s political career. He cruised to reelection in 2012 and soon after signed a law that raised some tax rates. Whether or not it proves fatal to Democratic majorities in the House and the Senate or to Biden’s presidency is yet to be determined.

NACSPAC DONORS NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac. NACSPAC donors who made contributions September 1-30, 2021, are: Tony Vecchie Huckster Inc.

Daniel Hennessy FIFCO USA

Raymond M. Huff HJB Convenience Corp.

Sherry Capehart TXB Stores

Mike Wiggins TXB Stores

Cody Stevens Wynn’s Grain & Spice LLC

George Penyak Restaurant Technologies Inc.

Ben Juda FIFCO USA

Anthony Liberal Nisqually Markets

Vicky Baggett TXB Stores

Brandon Frampton TXB Stores

Katie Petru Casey’s General Stores Inc.

Joe Juliano United Pacific

Jerry Morrow Mother Parker’s Tea & Coffee

Kristin Seabrook Pilot Travel Centers LLC

Nancy Pappas NACS

Nick Triantafellou Weigel’s Stores Inc.

Tommy Hunt E-Z Stop Food Marts Inc.

Edward Burcher Namred LLC

Chris Fitterer The Hub Convenience Stores Inc.

Jerry Davidson Petes Corporation

John D. Harris Coulson Oil Company

Matt Seymour Q Squares

Rick Tellez TXB Stores

Nathan Graham TXB Stores

Bo Sasnett D&H United Fueling Solutions

Mary Szarmach Gasamat Oil Corp./ Smoker Friendly

Frank Beard Standard Cognition

Joe Clark TXB Stores

Rick Gobel Apter Industries Inc.

Charles Lawton United National Consumer Suppliers

Stewart Spinks Spinx Company Inc. Mark Larrabee Advantage Military Hal Kravitz Advantage Solutions Kevin M. LeMoyne Coca-Cola Company Chip Lavigne Lavigne Oil Company Michael Deal Moyle Petroleum Company Malik Yousif MYS Energy Andy Jones Sprint Food Stores Inc.

28

Chris Coborn Coborn’s Inc. Little Dukes Robert Gallo Impact 21 Jerome Sedelmeyer CMI Solutions Inc. Carrie Miller High’s of Baltimore LLC

| NOVEMBER 2021

Sabreena Hakemy 6040 LLC Rodney Brent TXB Stores Dona Dotson TXB Stores

Thomas Hunt Gravitate Tom Kirby Love’s Travel Stops Rick Brindle Mondelez International Amanda Brandt The Hub Convenience Stores Inc.

Andy Batt Eby-Brown Company LLC Chuck Maggelet Maverik Inc. James Neutze Mr. Cartender Inc.

Fred Faulkner Jaco Oil Company Fastrip Food Stores Jonathan Polonsky Plaid Pantries Inc. Chuck McDaniel QuikTrip Corporation

Nick Patel National Petroleum

Benjamin Hoffmeyer TXB Stores

Sajid Chaudhry NSR Petro Services LLC

Daniel R. Gaddy TXB Stores

Duane Shields Short Line Express Market

CONVENIENCE.ORG

INSIDE WASHINGTON

Climate Corner METHANE: THE MOST POWERFUL GREENHOUSE GAS

BY PAIGE ANDERSON

Paige Anderson is the NACS director of government relations. She can be reached at panderson@convenience.org.

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| NOVEMBER 2021

In the climate debate, reducing the carbon footprint of the transportation sector has been the main focus of the White House and Congress, as CO2 accounted for 80% of U.S. greenhouse gas emissions in 2019, according to the Environmental Protection Agency (EPA).

However, there is another greenhouse gas emitter that has received as much attention if not more in recent months— methane, which accounted for 10% of greenhouse gas emissions in the United States in 2019. So, what is methane’s impact on the climate and what are policymakers in Washington working on to reduce methane emissions?

Methane is a gas found in small quantities in the earth’s atmosphere and is the simplest hydrocarbon but the most powerful greenhouse gas. Globally, over half of the total methane emissions come from human activities. The two main business sectors involving methane emissions are agriculture and energy.

In the agriculture sector, domestic livestock, such as cattle, pigs, sheep and goats, produce methane as part of their digestive process. Also, when animal manure is stored or managed in lagoons or holding tanks, methane is produced. When livestock and manure emissions are combined, the agriculture sector is the largest source of methane emission in the United States. Consequently, agriculture has been a target of climate environmentalists, with some activists calling for reducing meat production and finding plantbased alternatives to beef or pork products.

Beef has the biggest greenhouse gas footprint of any food type.

Natural gas and petroleum systems are the second largest source of methane emissions in the United States. Methane is the primary component of natural gas and is emitted into the atmosphere during production, processing, storage, transmission and distribution of natural gas and the

production, refining, transportation and storage of crude oil.

Climate groups have stated that cutting methane is the single fastest way to curb climate change. Absent new climate legislation or congressional action—like a carbon tax, cap-and-trade system or similar measures— that would mandate emitters to internalize the costs of emissions and their impacts on climate, climate groups are pushing the Biden Administration to rely on emission rules to address the problem of methane

U.S. METHANE EMISSIONS BY SOURCE 30% Natural gas and petroleum systems 27% Enteric fermentation 17% Landfills 9% Manure management 7% Coal mining 9% Other Source: EPA (2019)

emissions quickly. Hence, the White House advanced the U.S. agreement with the European Union aimed at cutting methane emissions by at least 30% from 2020 levels by 2030. In addition, the EPA will soon release new methane regulations that would cover both new and existing oil and gas infrastructure. These EPA rules are at the White House for review and are expected to be even stricter than the Obama-era standards set in 2016, which were reinstated earlier this summer after Congress took the unusual step of invalidating a Trump-era rollback and replacement rule on methane.

As the climate debate continues in Washington, we can expect to see more activity toward reducing greenhouse gases—whether it be carbon dioxide, methane or other greenhouse gases.

CONVENIENCE.ORG

IDEAS 2 GO

Crafting a Destination

Arroyo Shell built a loyal following with its wide selection of beer.

BY SARAH HAMAKER

It took two years of tinkering with the [cooler] mix before I saw good returns on my investments in craft beer.

The California gas station and convenience store offers chilled cans and beer bottles, with owner Shibli Haddad resetting the doors multiple times a week to keep up with stock.

A

rroyo Shell didn’t start out life as a destination for craft beer in Pasadena, California.

“My father ran the gas station and convenience store on this site in the 1970s, eventually buying the land and business in the 1990s,” said

SEE MORE! Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2020 and earlier, go to www.convenience.org/Ideas2Go.

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| NOVEMBER 2021

current operator Shibli Haddad, whose family owns the business. When his father died when Haddad was a child, his mother leased the business for nearly two decades until Haddad was old enough to take over.

“In April 2016, I ended up stepping away from my other career to do what my father did,” Haddad said. “I didn’t know him growing up, and running this station and store gives me some insight into his life.”

His own background in accounting and business management gave him a “good foundation for running a business day to day. I didn’t know anything about convenience stores or gas stations, but I did have a good helping hand with our fuel distributor, Anabi Oil,” Haddad said.

CONVENIENCE.ORG

ABOUT

Customers have asked why owner Shibli Haddad has not switched to opening a bottle shop. He replies that his customers still like the convenience aspect of his store. They can fill up on gas, pick up snacks and find a new brew to go.

The Shell fuel distributor worked with Haddad prior to opening, connecting him with vendors and buyers. Within eight months, he had the business open and employees hired, giving him a chance to consider the merchandise more closely.

BREWING UP CUSTOMERS Haddad’s sister initially gave him the idea to add craft beer, and he got connected with the local craft beer scene through Stone Brewing’s tap room. Arroyo Shell started with a single cooler of craft beer in January 2017.

One thing Haddad did that was different from other retailers was sell single bottles of craft beer without a steep markup. “You shouldn’t be punished for experimenting with craft beer, which is what my system encourages,” he said. “I could have 25 different six-packs, or I could have 80 different kinds of beer in a single door. By breaking apart the packs, I’m able to offer a wider selection of beer.”

Now he has five doors of craft beer with two of those for single cans. He has a cooler door for craft kombucha, nitro tea and seltzer, plus two doors for four-, sixand 12-packs and two doors for domestic beers. “It took two years of tinkering with the mix before I saw good returns on my investments in craft beer,” Haddad said.

“It’s more than doubled five years later.”

His craft beer inventory turns over two to three times per week. When new shipments arrive, extra staff is on CONVENIENCE.ORG

Name of company Arroyo Shell

hand to break apart packs, individually price the cans and photograph them for Instagram. “There can be a huge difference in price per can,” he said. “I have some that cost $2 per can and some that cost $10 per can.”

“It’s a lot of work, but we’ve got our system down and can do it in two to three hours now,” he said. Because he often buys very small quantities of craft beer,

Date founded April 2016 # of stores 1 Website www.instagram.com/ arroyoshell

BRIGHT IDEAS Shibli Haddad, owner of Arroyo Shell in Pasadena, California, built his craft beer business by talking to customers and employees. Anytime a customer opened the craft beer cooler door, Haddad introduced himself and asked what kind of beer they liked. “I needed the feedback to know how to better my selection,” he said. “Pretty much everything I do now is because I took the time to talk to customers and employees. Anyone’s capable of a good idea, and I’m willing to try implementing it to see if it’s successful or not.”

He emphasized the importance of getting honest feedback from customers and staff. “The main thing is you have to do something that sets you apart from other convenience stores, but to get there, you have to not get discouraged early on in the process,” Haddad said. “Get feedback and keep working on it. If I can get people to come in and spend hundreds of dollars on craft beer at a gas station, what you want to do is possible, too.”

NOVEMBER 2021 |

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IDEAS 2 GO

he’s resetting his coolers weekly, with turnover 50-75% from week to week.

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia.

Visit her online at www. sarahhamakerfiction.com.

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| NOVEMBER 2021

CRAFTING EMPLOYEES As many retailers can attest, it’s the employees who make his store a success.

“Most of my employees don’t know much about craft beer, so I’ve set up methods to help them sell it,” Haddad said. For example, he marks his personal recommendations on each new shipment.

“For me, customer service is No. 1. It doesn’t matter if you’re super knowledgeable. If you treat customers correctly, they are more likely to come back,” he said. “I love my staff.”

Haddad does more than praise his workers. When the local minimum wage hit $15 an hour, he raised wages to $16.50 an hour. He gives them a Christmas

Data from NACS Convenience Voices indicate that 25 to 34 year-olds make up the largest share (47.5%) of craft beer purchasers in the convenience store channel.

bonus every year and a paid week off as well. “If you want to make your customers happy, make your staff happy,” he said. “You need to take care of your employees first before your customers.”

For Arroyo Shell, it comes down to this: “What separates me from other convenience stores is that I found a niche market, and that helps to attract people to my store,” Haddad said.

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| NOVEMBER 2021

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A

400,000

f ter two years of being apart, the NACS NET SQUARE FEET Show took place live and in person last OF EXPO SPACE month. Our industry is stronger when we are able to share, collaborate and work through our challenges together, and the number of attendees who convened in Chicago in October knew that there’s no better place to do that than at the NACS Show.

To say that our industry is resilient would be an understatement.

Millions of customers rely on our industry every day, and we continue to operate and serve communities across the globe through difficult times. The essential nature of our industry has never been EDUCATION more apparent.

AND GENERAL NACS has always been there for our industry—and for you.

SESSIONS After the tragic days of September 11, 2001, the NACS Show was the first major tradeshow held in Las Vegas. After Hurricane Katrina in 2005, NACS relocated the Show from New Orleans to Las Vegas in 10 short weeks because our members NUMBER OF NEW knew that the Show must go on, and we knew we were needed to EXHIBITORS serve the industry.

And this year, the NACS Show continued to serve our industry.

NACS Show exhibitors reached 1,235 across a net 400,000 square feet of expo space. A RECORD number of new exhibitors participated in this year’s NACS Show—388—beating our record from 2009. Clearly, innovation and new ideas were not paused in 2021.

Lots of newer exhibitors meant more new products—especially in our Cool New Products Room, one of the favorite NACS Show spots for retailers. A total of 277 new products were on display this year.

New innovations and future trends were explored in more than 40 education sessions and four general sessions.

The NACS team worked closely with the city of Chicago, the convention center and the U.S. Centers for Disease Control to ensure ATTENDEES IN CHICAGO that we provided the safest environment for us to gather. The continued support of our indusNUMBER OF COOL try, our customers and our communities has NEW PRODUCTS helped move the convenience and fuel retailing ON DISPLAY industry forward so we can all continue to thrive for years to come. As an industry we are resilient, and we will get through this together.

We got this!

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388

17,273

CONVENIENCE.ORG

277

NOVEMBER 2021 |

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A Joyous Reunion Retailers and suppliers celebrated being together—at last—at the NACS Show.

F

ace-to-face networking, Show floor encounters, smiles and elbow bumps.

Seeing, smelling, sampling and discovering new products—all of the best things about the NACS Show were amplified in Chicago when the convenience and fuel retailing industry reunited after a long COVID-19-forced hiatus.

As essential businesses, convenience retailers and supplier companies never shut down as the waves of the pandemic swept across the globe during the past 18+ months. While c-stores and gas stations braved myriad challenges to keep their doors open, the health risks and logistics of travel kept many of us apart.

“This year—perhaps more than ever—our industry needed the NACS Show,” said 2021-22 NACS Chairman Jared Scheeler, CEO of Dickinson, North Dakota-based The Hub Convenience Stores Inc. “Convenience retailers and their supplier partners were able to meet face-to-face at the Show and reinvigorate the relationships and drive that keep our industry innovating and delivering excitement

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to our brands, our customers and our communities,” he said.

NACS 2020-21 Chairman Kevin Smartt, president and CEO of Austin-Texas-based TXB Stores, said, “733 days! That’s how long it’s been since we were last in person at the 2019 NACS Show. A lot has changed over the past two years, but one thing hasn’t: our resilience. No matter what was thrown our way we adapted, we pivoted, and we said, ‘We got this.’”

From smiling faces—behind masks—to social media posts, Show-goers shared their enthusiasm about being back together and the relationships that are a central part of our industry.

That sentiment was echoed again and again across the four days of the Show and on LinkedIn, Facebook, Twitter and Instagram. This was our most socially connected Show ever (search for #WeGotThis, #NACSShow and #NACSShow2021 on these platforms). To spark conversation across McCormick Place—and beyond—the NACS Media team fanned out to ask Show-goers some simple but key questions. Here’s what they said.

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WHY ARE YOU HERE AT THE NACS SHOW, AND HOW DOES IT FEEL TO BE BACK WITH YOUR PEERS? Dave O’Brien, Reed Inc., dba R Place Food Stores, Ely, Nevada

Dan Gavora, Market Basket Inc., Fairbanks, Alaska

“I came to the NACS Show for ideas. We’ve got foodservice that’s struggling. We’ve got stores that are struggling. We’re dealing with all of those issues that everybody is dealing with, and we figured this is the place to come to get those ideas, get those answers, get that communication, see the ideas.”

“This is the premiere event to come to learn about what’s new and developing in the world of the convenience store business. This is my first NACS Show. We’re looking forward to it.”

Tiffany Sims, Pak-A-Sak, Amarillo, Texas Daillard Paris, Sheetz, Altoona, Pennsylvania “The main reason I came to the NACS Show is to experience the IDEA conference (held the day before the Show opened).

We are doing a lot of work around diversity, equity and inclusion. I also came to see the exhibits and meet counterparts that I engage with in my day-to-day business. There’s nothing like the face-to-face meetings and being able to break bread and have lunch with people and have that connection. It feels amazing. The turnout is surprising.”

Beth Barron, TXB Stores, Spicewood, Texas “We come every year as a company to find new products to try, go to the education classes and find new ways of doing things. I just came out of the advanced category management training class, so I’m now certified as a convenience category manager. I learned lots of great things in there, so it’s really just finding new ways to do business in an ever-changing environment.”

“We’re here to just look at the new products, figure out if there’s some things that will fit for us. Do a little bit of networking. And just be back. It’s a nice feeling to be able to actually see people face to face that you work with on a daily basis.”

Hannah Steiner, Glazer’s Beer & Beverage, Jumbo Beverages, Dallas, Texas “We’re checking out new products from our existing suppliers with over 20 of them here, but we’re always looking to add new brands, and this is a great place to see it.

There’s a lot of innovation happening right now in the beverage space, especially around energy. I joined the company in the middle of the pandemic, and I haven’t met a lot of our suppliers. Finally I’m going to get to see them after a year and a half of working together.”

Brian Nichols, Maverik Inc., Salt Lake City, Utah Samantha Knoll, Glazer’s Beer & Beverage, North Little Rock, Arkansas “We’re here looking for new suppliers that we can have distributed in Arkansas, Louisiana and Texas and get chain distribution. It’s exciting—it’s like a big reunion.”

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“I’m really looking to see what’s out there—innovation, new technologies, fixtures. I do the cold vault, so really just anything that’s new and exciting, innovative, something I haven’t already seen before. It feels great to get out of the house and get out of the office.”

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WHAT’S ONE IDEA YOU’VE HEARD OR SEEN AT THE NACS SHOW THAT CAN HELP CHANGE YOUR BUSINESS? Carlos Eduardo De La Concha, Corporativo De Energia Servic Enerser, Tijuana, Mexico

Stacy Carraway, Phillips 66 Company, Houston, Texas

“We’re going into a new market, so we’re looking for the new technology, the new products that are out there because we’re looking to build stores that are much different than what you’re probably used to seeing in convenience stores. We’ve seen at least five different vendors in five different areas that catch our eye, and I’m sure we’re going to be doing business with them.”

“I want to learn about the customers, consumer behavior, emerging energy trends and just what the market looks like going forward.”

Kevin Dinnen, Rainbo Oil Company dba Kwik Stop, Dubuque, Iowa “I’ve learned a lot from the general sessions about getting back to the basics after COVID and focusing on your core business, your people and remembering who you are.”

Imran (Ron) Ali, Ibros LLC, Sugar Land, Texas “The technology has given me some ideas. The self-checkout system is something I’m thinking about implementing in my store.”

Keyur Bhatt, Graham Enterprise Inc., Vernon Hills, Illinois “How to hire in a tough labor market. I got some nice takeaways about how to find new talent and also how to retain your workforce.”

Megan Williams, Hat Six Travel Center, Casper, Wyoming “There were two education sessions that I went to. The first is about having an app and how to really dig into digital marketing and how to grow your app sales and how to expand on what you’re offering at your location, whether it’s one location or multiple. The other session was from the Gas Station Gourmet. It was lots of fun. I would say that [Al Hebert] had some great ideas around community and how to kind of build your business from doing community events—not only charitable events but actually having events at your location.”

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Joshua Scott, F. McConnell and Sons Inc., New Haven, Indiana “I’m new to the industry. I’m excited to be at a show as an attendee finding new lines, new brands, product knowledge and everything on that side of things.

Some of the panel discussions this morning in ed sessions were really good for me to get the knowledge, get the introduction, get the lingo down, so I’ve been really trying to soak everything up, and the ed sessions were really beneficial.

There was the optimizing product [session], which was really great. I really liked the datadriven approach taken there. And then the new supplier panel discussion was good, talking about brands entering the space and what some of the major retail players were looking for in terms of new partners.”

Dawn Denney, Shell Oil Products U.S., Elkhorn, Nebraska “Learning about new technology, especially as it relates to the energy transition—transitioning to electric vehicles and to hydrogen.”

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isionary retailers and industry influencers at 40+ NACS Show education sessions helped attendees solve challenges and compete for the time and attention of consumers in today’s disruptive marketplace. Read on for the highlights.

DRAW THEM IN DIGITALLY Today’s digital world presents retailers with a new frontier for engaging customers and finding new ways to keep them coming back time and again. Casey’s, Yesway and Burger King strategists tackled “Modern Strategies for Customer Engagement and Loyalty,” taking a look at how digital can be part of developing a complete business-to-consumer marketing strategy.

Michael Caldwell, loyalty manager for Yesway; Whitney Gretz, vice president of digital and loyalty at Burger King; and Art Sebastian, vice president of digital customer experience for Casey’s, joined moderator Sam Herro, director of client solutions for digital growth at Hathway, to discuss how their companies have used the digital domain to build and maintain loyalty among their customers.

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The key for retailers is to use digital to solve customer problems. “Data gives you new tools,” Herro said, particularly in the high-frequency business of c-stores.

“Convenience is no longer just a channel,” Sebastian said. “It is a need state for consumers and retailers.”

Digital is a critical space, and the c-store industry is behind—but can catch up, Sebastian said. “A lot of us focus on e-commerce,” he noted, but there are ways to use digital tools to make stores more efficient, facilitate the supply chain and streamline corporate functions.

Casey’s digital transformation is ongoing, with a new website, mobile app and digital-only loyalty program already in place, so the Iowa-based retailer is shifting to the “accelerating” phase of its digital strategy, Sebastian said. Casey’s new customer data platform captures transaction data, loyalty data and marketing data to provide a single view of each customer to allow Casey’s to personalize experiences.

Burger King’s Gretz stressed the need to research what customers want before testing any program.

Customers may tell you they want certain things in a program but then not use them. “The value of testing CONVENIENCE.ORG

Show-goers found insights and inspiration in education sessions.

nings with real customers in the real world is so powerful,” she said.

The panel also shared thoughts and experiences around delivery. With third-party delivery like DoorDash, “the margins are really bad, and you don’t get the data,” Gretz said. Still, using outside providers can help build volume.

First-party delivery, on the other hand, allows companies to capture customer data and build “white label” experiences. “A lot of us believe you need to be in both,” Gretz said. “It’s kind of a winner-takes-all space right now.”

TIPS FROM AMERICA’S GAS STATION GOURMET Al Hebert knows gas station food. The writer (and taste-tester) behind the Gas Station Gourmet series has traveled far and wide in search of the best places to grab some grub while you top off the tank. It’s no surprise, then, that “4 Ways to Stand Out as a Small Operator: Tips from the Gas Station Gourmet,” was packed to the brim with insight for c-store owners looking to up their culinary games.

Hebert (seen at right) provided a roundup of four ways he’s seen c-stores across the nation develop loyal fan bases.

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1 . Feature regional foods.

“Focus on local favorites,” said Hebert.

“Whether it’s Kolaches, cheese curds, boudin or gumbo, listen to the customers and the community. Give customers what they want—and also what they don’t know they want. If you’re not from the community and aren’t sure what people in your local market area love to eat, Hebert recommends asking customers and visiting local events to see what’s popular.

2. Become a community store. “ Become a community store—a place where folks feel at home,” Hebert said. “You want customers to look forward to the daily stop at your store. Be ‘their place.’ Your staff will play a key role.”

3. Use social media.

“Social media is so important if you want to compete effectively,” said Hebert. “Post each day. Each day something happens in your store—that is a Facebook or Instagram post. If nothing is happening, post your Customer of the Day.” If you have daily specials, post about those. “Find influencers who will get you new customers,” he added.

4. Keep a clean restroom.

“Clean restrooms will draw customers in,” said Hebert. “Dirty restrooms are etched in the minds of everyone who sees them. Keep them clean. Keep them updated. Do not become the store that people are afraid to patronize when a bathroom break is needed.”

MAKING THE MOBILE CONNECTION Consumers are embracing mobile device connectivity in mass numbers across all demographics. And you don’t have to be fancy to get

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started in the mobile space, said Kay Segal, managing executive at Business Accelerator Team.

Segal led a panel on “Creating an Integrated Mobile Experience” that outlined the first steps to the digital ecosystem to connect you with your customers before, during and after they walk through your door.

Panelists all agreed that step one to connecting with your customers digitally is making sure they can find you. Although digital proximity searches make it easier than ever for people to locate you, Segal pointed to Google as the “mother of all platforms.” Claiming your business on Google is key.

(See sidebar “Project Search.”)

Babir Sultan, CEO of Fav Trip, digitally connects to a million customers each month using a mix of social media and a text club. He encourages c-store owners and operators to try a mix of things to see what works best for customers. “Don’t be intimidated by different platforms,” he said. “Give it three to four months. Start somewhere and be consistent. Your best tool is your phone.”

Amanda St. Romain, marketing director of St. Romain Oil Company LLC and Y-Not Stop convenience stores, searched for the perfect app for connecting with customers. When she couldn’t find it, she developed a custom one. “We wanted our app to do everything in one space so that no customer would have to download multiple apps,” St. Romain said. She wanted an app that offered food ordering, coupons, push notifications, loyalty rewards and more, and she worked with Rovertown to build a branded app they can continually customize.

As you begin connecting with customers on their mobile devices and working with vendors to help make it happen, it is critical to keep technology standards in mind, according to Linda Toth, managing director for Conexxus.

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Take Home the Learning This year was full of insights specific to navigating and constructing a vision of the future, and you can access all the education sessions via unique package offers.

This package of Top Thought Leadership Education Sessions can help you chart a course for success: • General Session: Retailers on Resiliency featuring Lonnie McQuirter of 36th & Lyn Refuel Station, Rachael Krupa of The Goods Mart, Don Rhoads of The Convenience Group Conexxus has created an API Data Dictionary of common language. “Ask vendors if they are using Conexxus standards, and if they aren’t, ask them why,” Toth said.

DIGITIZING THE BACK OFFICE Digitizing your back-end operations can improve your day-to-day store operations and benefit your employees. At the education session, “Digitizing the Back Office,” representatives from WorkJam, Circle K and Chevron talked about how the digitization effort may seem daunting, but the benefits are worth the effort.

Ed Dzadovsky, vice president of North America IT for Circle K, said the convenience sector was, at one point, lagging in digitization, but that is no longer the case. “We were one of the last industries to be touched by digital transformation,” he said. “That couldn’t be further from the truth today.”

Dzadovsky said implementing a digitization system like WorkJam changed the culture at Circle K and improved employee engagement.

“We went to an announced store visit with our CEO,” he said. “On the way out the door, the manager asked if he could take a picture and post it to WorkJam.” Will Eadie, chief revenue officer for WorkJam, said the system has been adopted in 45 countries and more than 45 languages. “And what drives all this?” he asked. “The workplace is as unpredictable as ever. Managers say, ‘I have to hire as many people as I can and keep the people I have.’ And how do you do that? You need tools.”

Pam Beitia, customer success manager for WorkJam, outlined key pain points, including multiple resource locations and access issues, outdated delivery modes and sparse work and life tools. Addressing these areas can lead to happier employees and more productivity.

Diane Sheih, IT manager for Chevron Corp., appeared in a special video presentation to outline that company’s transition to a digital workflow. She said engaging with employees on CONVENIENCE.ORG

• General Session: Reinventing Convenience and Reimagining Our Future featuring NACS Chairmen Kevin Smartt and Jared Scheeler and NACS President and CEO Henry Armour • The AI-Powered Convenience Store of the Future Is Now Open for Business featuring Standard Cognition and Mars Wrigley • YOU Can Create Disney Magic Too! Lessons in Leadership, Management, Culture & Customer Service featuring Disney • Modern Strategies for Customer Engagement and Loyalty featuring Casey’s, Yesway, Burger King • NACS Conexxus Technology Roadmap 2021 featuring Circle K and Conexxus • Winning Search Along the Digital Path to Purchase featuring NACS Research and Yext • The Payment Blueprint of the Future featuring P97 and Conexxus • Evolving Your Trip Drivers featuring Kwik Trip and NACS Research Packages also include the Top 10 Most Popular Education Sessions and the full suite of education sessions presented at the NACS Show. For information on the packages and how to purchase visit www.nacsshow.com.

all levels—not just the customer experience— was essential for Chevron to make the change.

“We discovered a direct correlation between employee experience and customer experience,” she said. “To have happy customers, we had to have happy employees.”

TECH AND TRANSFORMATION Your business may be surviving the pandemic, but if it’s going to survive the future, a digital transformation is a necessity. Ed Dzadovsky, vice president of North America IT for Circle K, and

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Project Search In the session, “Winning Search Along the Digital Path to Purchase,” Lori Stillman, NACS vice president of research, and Christian J. Ward, executive vice president and chief data officer at AI search firm Yext, outlined why convenience retailers need to stake their claim in digital search results amid falling trips and competition. “Does our shopper know we are more than gas?” Stillman asked.

Convenience is changing, and retailers need to ensure that they are relevant in this new path to purchase where consumers influence others and research what, when and where to buy.

The NACS Convenience Voices Annual Shopper Study 2021 indicates that 21% of shoppers use digital product search, while 3 in 4 shoppers use their smartphone to find the product or service they seek and 13% use in-car navigation systems. Voice search is becoming more important, with 58% of consumers surveyed indicating they use it, according to PwC. Stillman warned that motorists who use voice search behind the wheel to find a store won’t be looking at a website or their phone to scroll through multiple options. They’ll head to the first location that Google or Siri serve up.

Nor can businesses rely on signage to draw customers in.

“No one is driving around looking for your place anymore,” Ward said. “They are driving around looking down at their phones. Your digital presence is as foundational as your business’s signage,” he said.

“We have to be where our customers are looking,” Stillman said. “NACS believes we have a responsibility to our industry to help us show up where people are looking.”

NACS will leverage a new initiative, Project Search, to help retailer members define their offer in the digital space to tell consumers about the products and services in stores right now to meet their needs. Launching in 2022, the service will help retailers control the critical facts about their businesses to ensure their information is served up to potential customers across platforms.

For more information, go to www.convenience.org/ findme.

Gray Taylor, executive director of Conexxus, laid out the path forward for that transformation at the session, “The 2021 NACS/Conexxus Technology Roadmap.”

Dzadovsky said there should be two things top of mind for every retailer: transformation and culture.

“If we’ve learned anything since the beginning of the pandemic, it’s that both of these are more important to our people than ever before,” he said.

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One of the biggest changes facing c-store owners in the coming years will be energy.

“We’re going to see a 20% reduction in fuel demand by 2030,” Taylor said. And that’s not going to come because of EVs, it’s going to come because [vehicle fuel] mileage is going to improve greatly by then. We’ll be traveling more miles, but the mileage will be so good that we’ll be buying less fuel.”

One of the main keys for c-stores going forward is the hyper-customization of data, and owners need to get in front of that now so they can control what data they have and how it is being used.

Taylor cited a Harvard Review study showing that, on average, only 4% of the data gathered by an enterprise is useable.

In addition, raising the visibility of mobile platforms among consumers will be essential to the survival of the industry in the future. “We’re competing with Amazon; we’re competing with Starbucks,” Taylor said. “How many convenience store apps do you have on your phone?”

The presenters outlined a roadmap for the coming years and said that in the immediate future, stores can expect to see more digital or “free range” coupons using QR codes and more companies turning to AI checkout systems. In two to five years, retailers will see a greater reliance on deeper data, and in five-plus years, they’ll start to see greater use of real-time pricing, differential pricing between locations and predictive analytics. But before retailers can start any of that, Taylor said they need to invest in people first.

“I would put my first dollars into culture and your staff,” he said. “They can do amazing things with their brains.”

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Main Stage Magic General session presenters shared best-in-class strategies and personal stories to help retailers navigate and thrive in today’s marketplace.

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T

his year’s NACS Show was all about coming together after a time of significant retail disruption. An impressive lineup of keynote presenters including NACS leaders, motivational speakers and a philanthropic-minded businessman took the main stage to inspire, challenge and transform the audience. Setting the tone for the NACS Show and delving into various aspects of the event theme “We Got This,” the general session presenters focused on the themes of reconnecting, resiliency and defining and innovating the industry’s future.

JENNIFER POWERS

Motivational speaker Jennifer Powers, author of the best-selling book Oh, shift!, brought her boundless energy to the NACS Show opening general session on day one, which celebrated the joy of being back together and working together to overcome obstacles. Her high-energy, positive message reinforced that despite all the challenges, “We Got This!”

With audience participation, Powers explored the power of her infamous “shift,” or the action we can choose to take to help us see situations in a positive light rather than a negative one. Coming on the heels of 2020 and the havoc wreaked by the global pandemic, Powers demonstrated that this shift in thinking can start with the little things.

Instead of reacting to a situation by deeming someone a complete jerk, for example, Powers’ shift would help you to pivot to remembering how, normally, that individual is a good person. Rather than stressing about feeling stuck—in your career, relationship, etc.—consider that maybe you’re right where you’re supposed to be at this moment in time.

It’s all about the way you frame it.

COVID-19 isn’t the only factor that’s shaken things up recently, although Powers noted that she herself had to shift 90% of her business when in-person motivational speeches and training were no longer an option. C-store owners, in particular, are faced with their own pressures: to offer healthier foods, reduce tobacco sales and accommodate EVs with charging stations— and all sooner rather than later. These transitions will not be easy, but Powers recommends remembering that you’re in control, and that there is power in the shift.

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Ask yourself good questions about what opportunity this change offers you and your business.

“The first and most important thing to do is to ask yourself good questions about what opportunity this change offers you and your business,” Powers told NACS Magazine earlier this year. In other words, consider the opportunity rather than the barriers you might face in achieving the change. “You can choose to use anything—or not. That’s how much power you have. It’s your life experience.”

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RACHEL KRUPA FOUNDER, THE GOODS MART

We had to make sure we knew what was most important— our staff, our customers and also the community that we serve.

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LONNIE MCQUIRTER DIRECTOR OF OPERATIONS, 36 LYN REFUEL STATION DON RHOADS OWNER, THE CONVENIENCE GROUP Day two’s general session featured a panel discussion with NACS President and CEO Henry Armour and three retailers who epitomize what it meant to be essential and resilient during a tumultuous 2020.

They turned around that adversity to help their employees, their businesses and, most importantly, their communities.

The first recorded case of COVID-19 in the United States happened in the Pacific Northwest in January 2020, and Don Rhoads, owner of the Convenience Group—which owns half a dozen Minit Mart stores in Vancouver, Washington, said that by March it was clear that things had changed. “March was our busy month for the year,” he said. “You could tell something was different. You could tell we were in some uncharted waters.”

That was also the time when Rachel Krupa, founder of The Goods Mart in New York City, found herself faced with a decision. “It was March 13 when everything shut down,” she said. “So, we [were wondering], should we close because it’s not safe? How do I help my team and keep them safe? And how do we serve our community?

We called the state, and they said you have to stay open because you are an essential business, and we need your help no matter what. And at that point it was full speed ahead.”

Rhoads and Krupa launched efforts in their respective communities. For Krupa, it was streetside cookouts, snack boxes that were sent out nationwide and a program called Taste and Tell that highlighted five brands in the store each month with a QR code leading to a customer survey for those brands. For Rhoads, it was raising money and supplies for the Clark County Food Bank that culminated in a drive-through event that served 250 cars in 55 minutes.

For Lonnie McQuirter, director of operations for 36 Lyn Refuel Station in Minneapolis, 2020 saw not only the pandemic but something that hit much closer to home. George Floyd was killed blocks away from McQuirter’s store, which suffered break-ins and damage during the protests that followed.

“We had to adapt quickly to that,” he said. “We had to make sure we knew what was most important—our staff, our customers and also the community that we serve.”

McQuirter said that his store not only had to respond to that but, like everyone else, he had to figure out how to respond to the needs of the community during the pandemic as well. “We sell cokes and smokes, and people needed that,” he said.

“But beyond that, people needed that sense of community. There was really that search for meaning from people and that sense of belonging. How do we make people feel OK and feel safe? What do the customers really need?”

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KENDAL NETMAKER

Maybe that decision you made, if you give it 110%, will open up the next door that’s meant for you.

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Kendal Netmaker has made a career out of turning adversity into advantages.

Netmaker, the founder of Neechie Gear, a lifestyle apparel brand that gives a percentage of its profits to underprivileged youth to encourage them to take part in sports, grew up on a reservation as part of Canada’s Sweetgrass First Nation. He challenged the crowd to take a different perspective when it comes to their problems.

“When a problem comes into your life, look at it in a different way,” he said. “What is this trying to teach me right now?”

Netmaker told stories of his mother and his grandmother and of growing up with little money on the reservation. His grandmother, he said, taught him how to approach people in a new way, including the customers who come to his stores. “We can’t always control the people that come and support us and why things happen,” he said. “But what we can control is what goes on [in our minds] and how we view the world.”

Netmaker said things that get in the way of our plans can often lead to better opportunities. “Here’s the true reality about when we make goals: Sometimes the universe has other plans,” he said.

“Maybe that decision you made, if you give it 110%, will open up the next door that’s meant for you.”

HENRY ARMOUR NACS PRESIDENT AND CEO JARED SCHEELER CEO OF THE HUB CONVENIENCE STORES AND 2021-22 NACS CHAIRMAN KEVIN SMARTT CEO OF TXB AND 2020-21 NACS CHAIRMAN At day three’s general session, “Reinventing Convenience and Reimagining Our Future,” NACS President and CEO Henry Armour led a spirited panel discussion featuring 202021 NACS Chairman Kevin Smartt and 2021-22 Chairman Jared Scheeler to talk about the future of convenience, focusing on three areas: last-mile solutions, the future of energy and age verification.

Both Scheeler and Smartt agreed that delivery apps are the wave of the future, but c-stores need to take ownership of that and get ahead of the curve.

Scheeler, CEO of The Hub Convenience Stores, said branding will be key to that.

“With so many orders online, I want people to say, ‘I ordered from The Hub,’” he said. “But today they are saying, ‘I ordered from DoorDash,’ and we need to change that.”

Smartt wholeheartedly agreed, adding that the convenience industry needs to act now to protect its data from those companies. “I think the most important point for the industry is we do not want DoorDash and those third-party companies owning our data,” he said. “And we need to come together as an industry and get it in our contracts that we own the data, not them.”

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There are enough things that happen on a daily basis that keep us up at night.

Age verification should not be one of them.

One area where the industry is already coming together is age verification. Armour said NACS has worked over the past two years to create a new solution to age verification in the form of TruAgeTM, a digital age-verification system that confirms a customer’s age at every point of sale while keeping personal data private.

In fact, Armour had some breaking news to announce on that front: In addition to Molson Coors and AnheuserBusch, Altria Group Distribution Company—the largest tobacco company in the country—is now a TruAge™ sponsor. Armour said that with more states requiring retailers to use age-verification systems—Nevada and North Carolina will require it by the end of next year— NACS is looking forward to welcoming additional sponsors.

With 90% of consumers supporting a nationwide standard for age verification, Scheeler said the time is now for retailers to get on board. “There are enough things that happen on a daily basis that keep us up at night,” he said. “Age verification CONVENIENCE.ORG

should not be one of them.”

The final area c-stores need to be keyed into is the future of energy, including the opportunities surrounding electric vehicles. Scheeler said that for his stores, which are mostly in rural areas, it’s not a high priority right now, but he is watching it. Smartt, whose TXB (Texas Born) stores can be found primarily in Austin, Texas, said c-stores need to get in now before someone else controls the market.

“We want to sell our customers what they want to buy,” he said. “Now is the time to be fighting for a level playing field because we don’t want to be doing it five years from now when the public utility companies own it.”

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What I’ve enjoyed the most is that we’re finally back together— in-person— here, at the NACS Show!

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HENRY ARMOUR NACS PRESIDENT AND CEO IDEAS 2 GO

“Over the past few days we have celebrated our resilience, our role as essential businesses,” said Armour on the last day of the Show, “and we’ve examined the issues and trends that will impact our future. But what I’ve enjoyed the most is that we’re finally back together— in-person—here, at the NACS Show!”

From the stage, Armour announced that Juul Labs has joined as a new sponsor of TruAgeTM, the new digital solution that enhances current ageverification systems and protects user privacy.

As convenience evolves “to be an outcome—or state of mind—not just a physical location,” Armour also shared news about a new NACS initiative regarding digital search: Project Search.

(For more on Project Search, see page 46 in this issue.)

“NACS sees the evolution of digital in our industry as a critical catalyst for the future of winning trips and building bigger baskets,” he said. “So, we’ve embarked on an initiative, named ‘Project Search.’”

The aim is to leverage the scale of NACS to help retailer members “define your offer in the digital space.” Armour invited retailers to sign on to the project. “This takes your offer beyond your brand—it tells consumers about the products and services you have in your stores to meet their needs right now.”

Armour also highlighted innovation happening in international markets.

In Asia, the convenience store chain Fook has redefined the entire store experience, using screens and mobile phones to create a hub for customers— increasing both sales and community engagement,” Armour said. Fook also won the 2021 NACS Asian “Best of the Best” Store Award announced at the NACS Convenience Summit Asia in August. The Coca-Cola Company sponsored the award.

And in Europe, innovation centers around the shopping experience.

Armour introduced a video showcasing how Migrolino in Switzerland is redefining cashier-less checkout.

(Migrolino was featured in the 2018 Ideas 2 Go series.)

The final general session also included the debut of the 2021 edition of the NACS Ideas 2 Go program, featuring five companies that are redefining convenience around energy, foodservice, community and culture: The Market by Tiger Fuel Co. (Charlottesville, Virginia); Wawa (Wawa, Pennsylvania); the PRIDE Stores’ 93 Octane Brewery (Chicago); 7-Eleven’s Evolution Store (Dallas); and Weigel’s (Powell, Tennessee).

Each episode will roll out at www.convenience.org/ideas2go beginning January 2022, accompanied by a live webinar and a podcast.

CONVENIENCE.ORG

Enhanced Access Controls (EAC) Become an EAC compliant authorized JUUL retailer to ensure continued access to JUUL products.

EAC includes two requirements for every JUUL transaction: Advanced Age-Verification (ID Scanning)

Automated Product-Quantity Limits

To ensure the purchaser is at least 21 years of age and their ID is valid (i.e., not expired).

To limit the amount of product that can be purchased to 1 JUUL Device and/or 4 packs of JUULpods to reduce the potential for social sourcing.

How do I commit to EAC? Learn how to configure your POS system by visiting the Juul Labs Resource Center: https://www.juullabsretailer.com Contact the EAC Call Center: 1 (855) 780-7966 between 9 AM to 9 PM ET

Please reach out to your Juul Labs Representative if you have any questions.

To combat underage use of JUUL products, Juul Labs is working with retailers across the U.S. to implement EAC within pre-existing point-of-sale system technology. Thank you for being a responsible retail partner and helping restrict underage access to JUUL products.

This information is for retailer use only and is not for advertising or promotional purposes or intended for a consumer audience.

Ideas That

Grow From giving back to amplifying sustainability to innovating new concepts, the 2021 Ideas 2 Go c-stores are industry pacesetters.

By Chrissy Blasinsky

C

onvenience retailers continue to revolutionize what convenience means to their companies, employees, brands, customers and their communities. This year’s Ideas 2 Go program, which debuted at the NACS Show in Chicago during a general session on October 8, revealed how companies are defining their purpose and changing people’s lives.

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w

WAWA’S SOCIAL PURPOSE Convenience stores are inextricably linked to their communities, representing more than destinations for great food, refreshments and fuel.

For Pennsylvania-based Wawa, its commitment to its people and making an impact in the lives of the customers the stores serve is guided by its social purpose.

At Wawa, “social purpose is embedded into the fabric and DNA of us as individuals and the organization. It’s an extension of our core purpose of who we are,” said Chris Gheysens, president and CEO of Wawa. “It’s how we make decisions, the people that we hire, the way that we support our communities and the way we serve our customers every day.”

Wawa’s social purpose is an extension of the company’s core purpose, which focuses on four pillars: community, valuing people, quality food and protecting the environment. “This framework allows us to direct and benchmark our efforts, allocate resources, time and people to the things that matter the most for us,” said Gheysens.

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7-ELEVEN’S EVOLUTION At 7-Eleven, redefining convenience never takes a break. The company has opened an average of two stores a day in the past 94 years, beginning with a single icehouse and growing to more than 71,000 stores throughout the world.

In March 2019, 7-Eleven introduced its Evolution Store concept in Dallas, Texas, that has expanded into a handful of cities throughout the United States. These “lab stores” serve as experiential testing grounds, where customers can try—and buy—the retailer’s latest innovations in a revolutionary new store format.

“The Evolution Stores are our labs that we learn from. We’re quickly taking those learnings and putting them into prototype stores that we build with restaurants,” said Brad Williams, senior vice president of corporate operations and restaurant platforms, 7-Eleven.

Customers who frequent an Evolution Store quickly recognize the food- and beverage-forward experience. “We see people from our core convenience store customer who comes in every single day, to a parent with young kids who are loving the Slurpee or the soft-serve experience. We’re really looking to surprise and delight people across the spectrum,” said Molly Long, vice president of store evolution and design, 7-Eleven.

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WEIGEL’S COMMUNITY INVOLVEMENT In 2020, Powell, Tennessee-based Weigel’s celebrated its 90th anniversary—appropriately during a 90-day event—that captured the company’s incredible growth from a local dairy to a bakery and more than 65 convenience stores.

“The 90th anniversary is going to take us into the future and springboard our loyalty program,” said Doug Yawberry, president of Weigel’s Stores Inc. Another 90-day event for Weigel’s is creating customer excitement around limited-time flavored milks. From peanut butter chocolate to orange creamsicle and birthday cake flavors, “our customers know that we have quality products.

When we introduce something, we make sure that it’s quality,” he said.

Weigel’s is also changing lives as a sustaining partner of Smoky Mountain Service Dogs (SMSD), whose mission is to enhance the physical and psychological quality of life for wounded veterans and their families with a mobility assistance service dog.

Army Sgt. First Class (ret.) Chuck Stewart’s wife encouraged him to reach out to SMSD after stopping at a Weigel’s store she had never been to before. While filling up, she saw a pumptopper for an SMSD fundraising campaign. That fateful day led to Chuck being paired with his mobility assistance dog, Sadie, for the past four years. “I never thought filling up a tank of gas would change my life,” he said.

TIGER FUEL CO.’S SOLAR FUTURE Tiger Fuel Company was established in August 1982 with the purchase of an Exxon-branded petroleum distributor. The Charlottesville, Virginia-based company expanded to convenience stores and car washes and home heating oil and propane gas products.

Today, Tiger is diversifying its energy offer even further with the acquisition of a solar company, Altenergy, that has since been rebranded to Tiger Solar.

“Our fuel business isn’t going away any time soon, but there is no doubt that the energy landscape is changing,” said Gordon Sutton, president of Tiger Fuel, who also believes that investing in solar will bring long-term success to the business and the bottom line.

“We are spending so much money keeping all these wonderful products cool during the summer.

And we have the canopy space, so it just made sense to put that space to work and start providing clean energy that will save us money down the road,” he said.

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PARENT PETROLEUM’S BREWING SUCCESS As Chicagoland-based Parent Petroleum expanded its store count to 16 PRIDE Stores, owner and CEO Mario Spina also set his sights on differentiating the concept to attract loyal customers. Today, the company has three foodservice concepts, Pride Café, Urban Counter and Taco Urbano, plus a liquor store and a new brewery called—appropriately—93 Octane.

“Nobody enjoys buying gas. What we try to do is make it an enjoyable experience for things that people do enjoy. Like good food, nice craft beer, a nice selection of wine and a nice selection of spirits,” said Spina.

“And hopefully when they need to buy fuel, they’ll do it here because they know they purchase things they enjoy buying,” he said.

The branding for the brewery is intentional. “We wanted to tie it into our roots, which is gas stations and convenience stores. So, that’s why we named it 93 Octane. The logo looks like the button on the pump, and for every beer we make we tie it into some type of fuel, oil or car,” Spina explained.

“We try to do things differently at every store,” he said, a nod to the fact that the company is not done testing, learning and innovating. “Just because you have one concept, it doesn’t mean it’s going to work for the next store,” Spina said. “That is the great and challenging thing about convenience stores. It’s not cookie cutter.”

Chrissy Blasinsky is the content communications strategist at NACS and can be reached at cblasinsky@convenience.org.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2021 and earlier, go to www.convenience.org/ideas2go.

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BuzzBallz.com

Nice Vice

vs.

(the 2021 Edition) Health-focused Frank Beard and Gas Station Gourmet’s Al Hebert reunite to share their snacking finds from the expo.

By Frank Beard and Al Hebert

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Frank’s Favorites To keep things fresh, Al and I are introducing a twist and each reviewing favorites from both healthy and indulgent categories. I’ll be the first to admit that while I’m careful about what I eat, I’ll gladly devour a basket of Krispy Krunchy Chicken or Champs Chicken when the mood strikes me.

(Pro tip: Krispy Krunchy’s Perfectly Cajun seasoning—a product I first tried at the 2019 NACS Show—is fantastic on roasted asparagus, roasted brussels sprouts and grilled tilapia.)

Let’s take a closer look at this year’s standout products.

GEN Z WATER I’d be remiss if I didn’t mention the single most hilarious product I’ve ever seen at the NACS Show. As an avid consumer of generational humor memes, I made a hard turn the moment I glimpsed the Gen Z booth in the new exhibitor area. The sleek aluminum bottle features a simple description that says everything you need to know: Plain Water – We Want Gen Z to Buy It – 1995-????

– For People Who Never Owned a Flip Phone – Made by Real Boomers – Flavorless Transparent Liquid I love everything about this, and I was thrilled to discover that the brand’s website looks like it’s straight out of GeoCities from 1999.

On a serious note, the product does speak to the growing concerns of many consumers—especially CONVENIENCE.ORG

younger generations—that singleuse plastic is unsustainable and harmful. And let’s be honest: Any successful attempt to make water interesting should be celebrated. At this point, what can you do that hasn’t been done?

REMEDY ORGANICS I also tried Remedy Organics’ plantbased shakes. The Berry Immunity flavor tastes exactly like Strawberry Nesquik—except that shot of nostalgia doesn’t come with an immediate side effect of guilt. Each of the company’s wellness shakes are USDA Certified Organic, plant-based, vegan, kosher, dairy-free, soy-free and gluten-free. More to the point of what I look for: They’re relatively low sugar.

When I spoke with a representative and asked about the sugar content—seven grams in the Berry Immunity shake—he explained that although a small amount of sugar may be needed to help with flavor, there’s a big difference between a product with seven grams and 27 grams. Furthermore, he explained that the company has worked to reduce sugar content in drinks on multiple occasions.

That’s something I find perfectly reasonable.

TOP LEFT: Gen Z Water stands out for its humor and its commitment to the environment; TOP RIGHT: Remedy Organics’ plantbased shakes embrace a healthy mindset.

GENIUS GOURMET Whenever I see the word “keto” on a bag of chips, I immediately fear that I’m about to eat a collection of intolerable protein pucks that taste like they’re seasoned cardboard. That’s why I was delighted to discover that the name “Genius Gourmet” was a literal product description.

These aren’t just good keto chips—they’re good chips in general. I devoured the spicy nacho bag in seconds. The chips have a satisfying crunch, but the

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flavoring is what really does the trick. If you think “Cheetos fingers” are a thing, then just wait until you get a hold of these. I don’t think I’ve ever encountered chips that are so delightfully drowning in flavor powder.

TOP LEFT: Genius Gourmet chips are delightfully dusted with flavor powder; BOTTOM LEFT: Waffle Dust by Performance Food Group transforms fried chicken; TOP RIGHT: PFSbrands’ garlic-brushed pizza stands out; BOTTOM RIGHT: and new exhibitor Jaquet’s waffles are “engineered to perfection.”

PERFORMANCE FOOD GROUP Walking by the Performance Food Group booth, I immediately zeroed in on a bottle filled with a white powder and the words “Waffle Dust” on the label.

Curious to know more, I examined it and was told to sprinkle the powder on a piece of fried chicken from their Perfectly Southern brand.

Imagine my surprise when I took a bite and felt like I was legitimately eating chicken and waffles.

As the bottle says, you’ll enjoy the “magical delicious flavor of a maple waffle in every sprinkle.”

I returned on a few occasions to sample it again because it’s really that good.

The product strikes a nice balance: It allows someone who might be indulging in fried chicken—but doesn’t want to add additional calories from a waffle—to have the sensation of eating chicken and waffles.

PFSBRANDS I could talk all day about how much I like PFSbrands’ distinctive new pizza program,

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Hangar 54.

Besides the crust being thin and absolutely delightful, the real magic is how they brush the edges of the crust with a garlic butter whirl. I watched a few friends sample it when we went over to the booth. You could just see the satisfaction on their faces when they got a hit of that garlic.

JACQUET Returning to waffles, perhaps the most disturbingly delicious item at the NACS Show was found at Jacquet’s booth in the new exhibitor section.

Beckoning from behind the clear, plastic wrapper emblazoned with the words “ready to eat” was their Belgian Waffle with Sugar Pearls. I immediately took one since waffles are the eighth wonder of the world, but I wasn’t prepared for what awaited me.

Rather than the airy, fluffy consistency you might associate with breakfast waffles, this was a dense, doughnut-like product that has been engineered to perfection. The satisfying crunch of the sugar pearls only added to my enjoyment of an already-phenomenal product.

CONVENIENCE.ORG

#1863

CONSUMER 2012 Toyota Camry parked at the pump

#1747

CONSUMER Abandoned the line and left

#1988

CONSUMER Waiting in line for 2.5 minutes Leaving the store without purchasing

That customer just left without purchasing.

See why in real-time.

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#1748

COMPANION Viewed 9 items Waited in line for 1.5 minutes

TOP: The Hershey Company’s Reese’s Potato Chips Big Cup is one of the “most delicious things I’ve ever had the pleasure of eating.” BELOW: Francesco Gardner and Michael Strauss of Cookies United say Italian Rainbow is the top-selling flavor of CakeBites.

REESE’S I may have saved the best for last.

A colleague from Standard AI handed me a pack of the new Reese’s peanut butter cups— with potato chips inside—and asked if I’d tried them. I hadn’t been to the Reese’s booth yet, but I had to laugh because how can you not try something like that? Can you think of anything more stereotypically American?

They are incredibly delightful. I don’t know how the company managed to maintain such a perfect,

mouthwateringly satisfying crunch in every little flake of potato chip, but the team at The Hershey Company pulled it off. This is a pinnacle of modern food engineering and one of the most delicious things I’ve ever had the pleasure of consuming.

I was somewhat dismayed to learn that each cup is 180 calories, but I can always go for a run later—right? Besides, sometimes we really do need to treat ourselves.

Al's Favorites It was great to see Frank again in Chicago. Last time we visited the Windy City for the NACS Show in 2017, we road tripped more than 1,500 miles from New Orleans and ate at all of the best c-stores along the way. He found celery and peanut butter and even drank a strange green juice concoction, while I devoured delicious barbecue and homemade ice cream—but I was proud of him for at least trying fried boudin. I’m also proud to see that he found a few indulgent options at this year’s Show.

If you’re like me and prefer to know what everyone else is missing, here are a few standout products from the NACS Show’s expo hall.

COOKIES UNITED I love cake. Real cake. But sometimes because of the size and packaging, cake is difficult to eat when you’re on-the-go. That’s why I like popping into a c-store and finding something delicious and convenient to eat. CakeBites from Cookies United is right up my alley.

“CakeBites are incredibly indulgent, mini pieces of layer cake. Three pieces, precut, in a little foil package,” said Michael Strauss, director of

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marketing at Cookies United. “In six years we’ve grown a lot. We found a niche in the cake snack business. People are looking for an upscale option rather than some of our other competitors, so we differentiate ourselves with a longer shelf life, and we’re more indulgent with a higher quality.”

Customers love the classic Italian Rainbow. It was an original and remains the biggest seller.

At this year’s NACS Show, the company debuted three additional flavors: Frosted Coffee Cake, Iced Blueberry Cobbler and Chocolate Tuxedo.

Celebrities even added fun to the popular treat since they’ve partnered with Marvel to offer Spiderman, Hulk and Black Panther CakeBites. It’s no surprise that kids love it.

VAN’S KITCHEN I also like food that’s fun, and there’s simply something fun about eating egg rolls. Even the guy in the photo displayed at the Van’s Kitchen booth looked like he was having fun eating an egg roll. That’s why I stopped by to see what they had to offer. Fortunately, I found a new egg roll that’s going to heat things up.

“Building on our successful line of current items with chicken and pork, we’ve introduced a Chicken Lime Chili egg roll,” said Carl Motter of Van’s Kitchen. “It’s got that bold zesty flavor that combines a little bit of heat and chili and then the snap and the zest that comes from the lime.”

In Cajun Country, we like some heat in what we eat, and the Chicken Lime Chili egg roll did not disappoint. It was like the Fourth of July for the tastebuds.

“We wanted to live up to what we quote on the package,” said Motter. “It’s got some bite to it. It’s not going to blow your head off, but it’s not like when you normally get something that promises big bold flavor when it’s really kind of ehh. We don’t want to have that happen. When we say it’s got kick, it’s got kick.”

BROWNIE BRITTLE I loved this product before I tried it. Once a bag of Brownie Brittle is opened in my house, it’s guaranteed to be empty. How do you stop eating these things?

That’s why I was excited to see that the company has a couple of new products. I spoke with Al Raddatz, the company’s vice president of sales, to learn more. “We’ve got two new products in our first licensed innovation in partnership with Hershey,” he said. “We’ve got the Heath Toffee Crunch, where Heath Toffee bits are included in our base Brownie Brittle. We also have a Reese’s Pieces Brownie Brittle.”

I’ve always thought there was something different about Brownie Brittle. As Raddatz went on to explain, CONVENIENCE.ORG

the thin, crispy format of the product reduces the calorie count. This also allows you to enjoy the sensation of the crispy, crunchy corner of the brownie—what many folks like best. That’s why it’s so hard to stop eating Brownie Brittle.

Personally, I stop when the bag is empty.

VANDERMOORTELE When I saw “French pastry”, I slammed on my brakes at the Vandermoortele booth for their sinfully delicious pastries.

First came the waffles. According to master baker Johan Coppens, stuffed waffles are a specialty from Belgium. “It’s a yeast dough that we fold out, fill with fruit filling and bake as a normal waffle,” he explained.

The waffles are individually wrapped and perfect for c-stores. They were soft and fresh, and the cherrystuffed versions were incredibly delicious.

Vandermoortele also offers bake-ups. Coppens claims they’re more of a solution than a product since they’re less than half of the volume of similar products. “They’re flat and take up less room in the freezer or trucks,” said Coppens. “Not everyone

TOP: Johan Coppens, Vandermoortele master baker, showcased sinfully delicious pastries.

BOTTOM: Isabel Atherton, marketing director, says Sunny Sky Products’ Upouria Frappe Mix can be used in a madeto-order foodservice program or in a self-serve slushie machine.

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has enough space in the freezers, so this is a good solution. You don’t need to defrost the product. It goes straight from the freezer to the oven.

TOP: Meghan Brody and Emily Goetze of Goetze’s Candy Company, share a new Cow Tales flavor to satisfy OREO lovers.

BOTTOM: Neal Onebane, president of Krispy Krunchy Foods, shares Krispy Krunchy Chicken’s new chicken cracklins.

SUNNY SKY PRODUCTS I’m crazy about decadent frozen drinks.

Upouria Frappe Mix is a new product from Sunny Sky Product that complements its 360degree coffee program, said Isabel Atherton, director of marketing for Sunny Sky Products.

“With a frappe mix you can do the made-toorder program. You can use the powder as scoop to add into a particular drink, or if you don’t have the labor in your store, you can put it in an FUB (Frozen Uncarbonated Beverages) machine,” Atherton said.

The drinks can be made with water, milk or almond milk. They taste great and have a pleasing mouthfeel.

The Reese’s Freeze is another new offer. What’s great about this is that it’s made without peanuts, so it’s safe for people with peanut allergies. I’m happy that people who’ve never had the chance to eat a Reese’s Peanut Butter Cup can safely enjoy the flavor in Sunny Sky’s Reese’s Freeze.

KRISPY KRUNCHY CHICKEN I’ll admit that I didn’t really look for healthy food at the NACS Show. I wanted to. I really did. The problem is I was just distracted by all of the delicious, indulgent options.

But it doesn’t always have to be a choice between one or the other. What if you want something that satisfies the craving for indulgence but lands

somewhere in the middle? For me, I usually reach for pork cracklins. That’s why I was excited to see Krispy Krunchy Chicken offering their own take on this traditional snack.

For the uninitiated: Cracklins have been a staple in South Louisiana for as long as we can remember.

Traditionally made from pork bellies, the skin, fat and meat are cut into bite-size pieces and fried in oil.

“The only cracklin that was available in the past was a pork cracklin,” said Neal Onebane, president and founder of Krispy Krunchy Foods LLC. “Now we’ve started with the chicken cracklins that not only have the skin but the meat is chicken—it’s not pork. This totally changes the flavor profile. It’s much lighter, and you can eat more of it. It’s a great addition to our menu.”

As Onebane explained, the company is now selling thousands of cases a week. They also use the Perfectly Cajun seasoning to make the product stand out from competitors.

When I stopped by to sample the cracklins, they didn’t appear to be heavily breaded. As a veteran of the keto diet, I thought this might be keto-friendly in the “friendly” category of the diet.

It really doesn’t matter though. I’m eating them either way.

Frank Beard is a Des Moines, Iowa-based retail analyst, speaker, and writer who currently works in marketing and customer experience at Standard AI. Follow Beard on Twitter (@FrankBeard) or LinkedIn. Al Hebert is the Gas Station Gourmet and showcases America’s culinary treasure—gas station cuisine.

He shares these stories and on occasion, a recipe or two at www.GasStationGourmet.com and each month in NACS Magazine.

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The

Top

NACS Show retailer attendees voted, and these Cool New Products stood out.

01

T

10

hirty-thousand new products enter the marketplace each year, and with innovation making up to 20% of a convenience store’s set, new products are critical. To help retailers identify the latest and greatest, the Cool New Products Preview Room at the NACS Show offered a sneak peek of what’s soon to be on shelves in c-stores everywhere. Clearly, innovation and new ideas were not paused in 2021.

New this year, attendees used the NACS My Show Planner mobile app to discover all the details about the products including the exhibitor’s name, booth location and release date. The app’s frictionless scanning feature allowed attendees to create a “personal shopping list” to check out the products on the expo floor.

Of the 277 new products on display in the room, here are the top 10 Cool New Products at the NACS Show, based on 11,350 total scans:

Mashgin The Touchless Checkout System

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11,350

TOTA L SC ANS

02

03

Naturipe Farms LLC

Naturipe Snacks™—Berry Parfait and Boost Bentos & Bliss Bentos

04

Lancer Worldwide

Toysmith

IBD Bold 30i

Joy Tower 360

06

05

The SAM Machine Corp. dba SAM Corp.

C4®

C4 Energy

The SAM Machine

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277 NEW PRODUCTS ON DISPLAY

09

08

07

Anchor Packaging Crisp Food Technologies® Fry Baby®

5-hour Energy Innovation in on-the-go products

NEW PRODUCTS ALL YEAR

David’s Cookies

Individually Packaged Retail Ready Products: Cake Slices, Muffins, Cheesecake and 6-inch Pies.

10

NACS has several ways for you to discover what’s new—and cool—in the convenience channel, and you don’t have to wait for the NACS Show in Las Vegas in 2022 to check them out.

Each month NACS Magazine’s Cool New Products Guide helps you find new packaging solutions, merchandising displays, technology, product designs and exciting new flavors.

Our Cool New Products email delivers new products to your inbox each month.

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David's Cookies

Individually Packaged Retail Ready Products: Brownies, Edible Cookie Dough Cups, Gluten Free items and a new cookie flavor: Chocolate Caramel Nut with Snickers.

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Electrici ty,

OIL anD Water

A few (of many) fueling highlights from the NACS Show.

By Keith Reid

A

fuel marketer who dismisses the NACS Show as being purely retail would be surprised at how many solutions cross over into the wholesale fueling side of operations, particularly on the technology front.

Innovative companies are always introducing new solutions on the expo, but they are not often linked to a new trend. Every few years, however, major trends pop up, driven by regulation or some other major policy initiative. That was the case at this year’s NACS Show, where several significant trends rose above the usual mix.

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EV SOLUTIONS Electric vehicles were hot this year, driven by Biden Administration policies and various international and local government initiatives to pursue the most aggressive carbon reduction policies.

EVs received notable attention in the NACS fuel-related sessions, including a three-part series that covered electric vehicle charging deployment: • “ EV 101: What Is EV/EV Charging and Why It’s Important” • “EV 201: How Do I Do EV?” • “EV 301: The Economics of EV Charging” CONVENIENCE.ORG

iStock.com/sanjeri/Olemedia

These sessions featured speakers from the charging industry, nonprofits such as the Center for Sustainable Energy and the Alliance for Transportation Electrification, and industry analysts from both the retail and EV sectors.

EV 101 laid the groundwork by discussing the anticipated pace of EV market evolution. It outlined the role the convenience industry can play and the need to prepare to participate. EV 201 continued the retailer focus and looked at issues related to compatibility and regulations and the various options retailers can pursue to offer this service. EV 301 examined some of the fundamental challenges that currently exist with earning a profit through a charging service, most specifically the utility demand charge. This charge is based upon the peak electricity demand at a site during a given billing period (such as multiple vehicles fast charging at the same time, on occasion), and can be substantial. Faster charging solutions become unviable, especially when the total utilization (consumption) is too low to make up the difference.

There was no shortage of charging and other EV-related solutions on the expo. At least 14 companies provided at least one offering in the category.

Several of the more notable solution developers were Blink Charging, which offers a full range of deployment configurations and charging speeds, and FreeWire, which offers “ultrafast” charging with battery storage to help level out demand charges and other utility fees.

One particularly interesting solution fit in well with the advice given to retailers in multiple CONVENIENCE.ORG

educational sessions: Be strategic in how you add charging within the footprint of your retail sites. The fuel and store price analytics company Kalibrate now provides retailers with an EV adopter demographics overlay for their business areas. This is linked to available charger locations and identifies consumer charging patterns to help retailers see areas where the need to add a charging station might be critical, or not.

L to R: Genevieve Comtois, a Fuels Institute board member; Steve Herlick of ChargePoint; Nicole Lewandowski of EVgo and Karl Doenges, NACS EV liaison, headlined “EV 201: How Do I EV?”

DEMAND DESTRUCTION The session “Disappearing Gallons: Cause & Effect,” sponsored by Fuels Market News, a NACS Media property, looked at the anticipated loss in gallons through EV adoption and other decarbonization factors expected to reduce demand for traditional gasoline and diesel fuels.

John Eichberger, director of the Fuels Institute, and this author conducted an open, interactive and casual discussion of the factors driving these initiatives, the timeframe (or likelihood) of moving completely to a single solution such as electrification and the considerations that fuel retailer marketers need to begin making to ensure that they continue to serve their customers in a profitable manner.

While the complete conversion to EV charging from internal combustion engines is being pushed in some circles, a variety of factors make such a complete conversion a long-term process, and perhaps one that is not feasible.

Fleet turnover rates will keep internal combustion engines as the dominant transportation powerplant

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Blink Charging offers a range of deployment configurations and charging speeds.

as the technology has matured to the point where EVs are not only viable but desired by an increasing segment of the motoring public. Retailers need to be preparing an EV service strategy, and, to save considerably down the road, prepositioning appropriate electric conduit with any new or rebuilds for use as needed in the future. Similarly, efficiency will only continue to increase with internal combustion engines through such factors as CAFE standards.

for decades to come. Further, while some politicians have, almost casually, abandoned other forms of carbon reduction in transportation, there are a variety of applications where current alternative fuels, perhaps with a significant renewable component, will likely be able to provide an equivalent carbon reduction without the headaches involved with trying to fit square pegs into round holes.

That does not mean EVs will fade from the scene anytime soon—quite the opposite. Their penetration is only going to increase, regulatory push or not,

EV Education Opportunity This year’s NACS Show featured three education sessions that focused on the opportunity that EVs bring to retailers. Receive six-month access to this primer on electric vehicles for just $49: • EV 101: What is EV/EV Charging and Why It’s Important featuring Center for Sustainable Energy, National Car Charging, Blink Charging • EV 201: How Do I Do EV? featuring Chargepoint, EVgo, Fuels Institute • EV 301: The Economics of EV Charging featuring RaceTrac, Alliance for Transportation Electrification, Electrify America, Free Wire Technologies Visit www.nacsshow.com to purchase.

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UNDERGROUND STORAGE TANKS Another trend highlighted was an increased focus on underground storage tank maintenance solutions with a laser focus on water removal. Companies such as Leighton O’Brien, Tanknology, Clean Fuels National and Crompco have traditionally provided these types of services and are Show newcomers.

What was notable, however, was that some of the fueling infrastructure equipment providers showcased specific solutions designed to ensure water removal from the underground storage tanks.

Franklin Fueling showcased its Corrosion Control System, which proactively removes water from tanks with its Corrosion Control Water Separator. The system is driven by the EVO 600/6000 ATG to automate operation and monitor for the presence of corrosive environments.

Veeder-Root offered its HydrX Fuel Conditioning System, which provides continuous water removal within diesel underground storage tanks. It is designed to remove water from the lowest point in the tank, preventing water from stagnating on the tank bottom and breeding microbial contaminants.

This trend is firmly in line with the research that has been coming out of the Fuels Institute’s Diesel Fuel Quality Council and is expected to expand. (For background, significant corrosion was discovered in 2007 in metal tank and sump equipment—pumps, drop tubes, sensor probes—after the conversion to ultra-low sulfur diesel. This launched a variety of inconclusive research studies and culminated in recent Fuels Institute research which potentially initiated or boosted this trend.)

DIESEL STORAGE An overview of the research and recommendations from two best-practice reports—Diesel Storage Tanks and Diesel and Fuel Loading and Delivery—were covered in the NACS educational session “Inspect, Detect, Correct & Maintain: CONVENIENCE.ORG

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Franklin Fueling showcased its Corrosion Control System, and Veeder-Root highlighted its HydrX Fuel Conditioning System.

How to Maximize Diesel Fuel Equipment Uptime.” The panelists were Scott Boorse, director of technical programs and industry affairs, Petroleum Equipment Institute; Chip Hughes, manager, environmental, Pilot Travel Centers; Prentiss Searles, marketing issues manager,

For more information about the Fuels Institute and access to free white papers and research reports, visit www.fuelsinstitute.org.

To read more from Fuels Market News, including the quarterly magazine and to sign up for weekly newsletters, go to www. fuelsmarketnews.com.

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American Petroleum Institute; and moderator Jeff Hove, vice president, Fuels Institute.

The findings and recommendations center on getting the water out to prevent biological growth, even for gasoline to a lesser extent, as it is the foundation for the biological growth that is linked to the corrosion. As stated: “Water is the only unequivocally correlated variable associated with corrosion rates.” Retailers will need to regularly test, use biocides, clean tanks and find other solutions to minimize water in the fueling system and clean out contaminants. This trend will transition to standard operations before long. eith Reid is editorial director K of Fuels Market News and editor-in-chief of Fuels Market News Magazine. He can be reached at kreid@fmnweb.com.

CONVENIENCE.ORG

POWERFUL BRAND. HOMETOWN FEEL. RUNNING YOUR BUSINESS YOUR WAY. POWERED LOCALLY.

We know that the true power behind the Cenex® brand comes from our locally-owned retailers – valued partners who are invested in their customers and community. That’s why we’re committed to your success and helping you build your business from the moment you become a Cenex® retailer.

From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

A name your customers trust, a brand you can count on – visit cenex.com/businessopportunities to learn more.

© 2021 CHS Inc. Cenex® is a registered trademark of CHS Inc.

PROTECT AND DEFEND For many retailers, a cybersecurity attack is not a matter of if, but when.

Mark Carl Chief Security Officer PDI www.pdisoftware.com

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WITH EVERYTHING ELSE RETAILERS ARE NAVIGATING RIGHT NOW, WHY SHOULD CYBERSECURITY RISE TO THE TOP OF THEIR PRIORITY LIST? Retailers spend a lot of their time worried about increased market competition—and rightly so. However, few things can impact their business faster or more severely than a cyberattack.

Threat actors recognize that retailers are focused on business operations and are just trying to remain competitive in this challenging economic environment.

Cybercriminals are more than willing to take advantage of that distraction to exploit weakened defenses or obvious vulnerabilities.

Most retailers simply don’t have the resources and expertise required to adequately protect their business, but that can leave them exposed as “easy targets.” That’s one of the reasons we’ve seen ransomware threats skyrocket since early 2020.

Another issue for retailers is that some of the attack groups, especially the criminals focusing on the energy sector, are state-sponsored. Attacks within petroleum retail have also escalated over the past few years, and those threats are increasingly sophisticated as the attackers leverage advanced technologies such as machine learning and artificial intelligence to gain points of entry into IT systems.

WHAT ARE SOME SIMPLE FIRST STEPS RETAILERS CAN TAKE TO PROTECT THEMSELVES? The entire concept of defending against attacks can feel really complex. That’s why you have to start with getting business leaders to buy into the need for cybersecurity. You need to prioritize resources and budget, and you need a holistic strategy—all of which are table stakes before you even start implementing specific cybersecurity tools and processes.

At a practical level, you need to employ sophisticated defenses such as vulnerability scans to identify what IT systems and devices are vulnerable. One of the best and easiest things you can do is ensure that all your software is up to date in terms of patch management. Using multi-factor authentication (MFA) for email and other logon credentials is a relatively simple step that can have a major impact on cybersecurity.

Ongoing security awareness training for all employees is also important.

From a part-time employee clicking on a phishing email or IT staff inadvertently making a software configuration error, approximately 95% of data breaches are the result of human error.

If retailers don’t have the right security expertise or in-house IT staff to deploy these technologies—or they’re just not comfortable taking on the management burden—they can always find a trusted service provider. There are all levels of support and services available, so it’s really a matter of knowing where you CONVENIENCE.ORG

This article is brought to you by PDI, a NACS Hunter Club and Global Supplier Council member.

have security gaps and working with the right partner to close those gaps.

WHAT’S THE BENEFIT OF HIRING A SECURITY SERVICE PROVIDER? It’s no longer hyperbole to state that cybersecurity can literally make sure you still have a business to operate. A ransomware attack can be catastrophic to retail operations, so retailers should view it with the same mindset as they do any other business risk. Yet many retailers are often of the mindset that security tools are expensive and complex, and that they don’t have time to spare from their business operations to implement a cybersecurity program.

In reality, cybersecurity shouldn’t really be any different than how retailers handle all the other aspects of their business. For example, if a retailer needs work to be done on some underground fuel tanks, they rely on experts who understand how to prevent risk in that environment. When protecting their locations from ransomware and other security threats, retailers should do the same. In other words, if you don’t have the skills to fix a problem yourself, go find a reputable expert to help you.

A trusted partner with expertise within specific retail markets can make CONVENIENCE.ORG

tool deployment and monitoring seamless throughout the retail environment. That, in turn, frees up retailers to focus on running their core business.

WHAT FACTORS SHOULD GO INTO HIRING AN OUTSIDE PARTNER? Deploying cybersecurity defenses, including 24/7/365 monitoring for suspicious activity, can be both timeconsuming and expensive if you’re not careful in how you go about it. When choosing a cybersecurity partner, retailers should validate that the recommended technology meets their needs for true detection and response capabilities with round-the-clock coverage for monitoring.

Attackers prefer to launch ransomware and other malware attacks during off hours, when it’s presumed that they will go unnoticed until it’s too late. Unless you have continuous coverage, it’s more a question of when, not if, your business will get hit. That’s why it’s also important to have a vendor that’s aligned with your business strategy so you can work together to not only prevent threats but detect them and respond to them in real time if necessary.

Building that foundational level of trust is critical to stopping any threats well before they can negatively impact your business.

It’s no longer hyperbole to state that cybersecurity can literally make sure you still have a business to operate.

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New flavors and healthier options are broadening the appeal of the subcategory once marketed to outdoorsmen.

By Pat Pape CONVENIENCE.ORG

H

ector Camacho of Abilene, Texas, has lost 40 pounds since January. Thanks to following a high-fat, low-carb keto diet, he’s wearing smaller sizes, his knee pain is gone, his blood pressure has dropped and his cholesterol levels are in the normal range.

“One of the best things about being on a keto diet is that you can eat a lot of protein, which helps you feel full longer. But you must still plan your meals and snacks,” Camacho said. “If I feel a slump in the afternoon or start craving a snack, I’ll have some beef jerky. It’s portable, it doesn’t need preparation, and it’s not messy. I keep a package in my gym bag and another one in my glove compartment, just in case.”

Once the popular snack of camouflage-clad hunters, jerky has become an in-demand, savory treat for today’s low-carb

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eaters of both sexes, as well as hikers, bikers, triathletes and time-crunched parents on the run.

Similar versions of the keto weight-loss program— including the Carnivore Diet, Atkins and Paleo— also recommend jerky for snacking. And today’s focus on healthy noshing has some manufacturers reformulating their offerings, producing new jerky flavors and reducing sodium and sugar.

CATEGORY OVERVIEW According to NACS Category Definitions, alternative snacks make up a small category featuring four subcategories: meat snacks, granola/fruit snacks, health/energy/protein bars and “other” options, such as dried fruits and vegetables and additional innovations.

“In 2020, sales for the category dropped to below 2018 levels during the initial lockdown phases of the COVID-19 pandemic. However, they

Meat snacks contributed $18,801 in average sales dollars and $9,411 in gross profit dollars per store in 2020. recovered in the latter half of the year,” said Jayme Gough, research manager, NACS. “Alternative snacks accounted for 1.81% of in-store sales in 2020—a decline of 0.14%. Average per-store sales were $56,196, and gross profit was $25,844.”

Nearly 129 million Americans enjoyed meat snacks and beef jerky in 2020, according to Statista, a consumer data company. Already, alternative snack sales have far exceeded 2020 numbers and “show increased purchase patterns escalating with vaccine distribution, back-to-work initiatives and general consumer confidence returning to retail,” Gough said.

Last year, meat snacks sales (36.2%) came in second in the category behind sales of “other” options (40.0%), while contributing $18,108 in average sales dollars and $9,411 in gross profit dollars per store. Industry insiders expect more robust results for 2021.

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TOUGH COMPETITION You might not suspect it, but the jerky business is highly competitive.

“There are so many players,” said Karen Phillips, managing partner, Derby City Jerky of Louisville, Kentucky. “That’s why we wanted to bring something unique to the category.”

Just before the pandemic began, Derby City introduced two products. One is Thrive Jerky, which replaces sugar with stevia, a natural sweetener derived from plants found in Brazil and Paraguay. “If you take sugar out of jerky, it becomes a dry, no-flavor product,” she said. “Stevia allows us to put various flavors out there, because we can manage the levels of stevia we’re using to change the taste profile.”

The second product is Bourbon Barrel Wood Smoked jerky. “There’s no actual bourbon in it. If you put bourbon in it, it just burns off,” Phillips said. “We smoke it using aged bourbon barrel wood instead of hickory smoke or cherry smoke.”

Due to pandemic disruptions, the two jerkies got a slow start last year, but both sold well through the company’s online store. Now, they’re moving into the retail environment, including Lowe’s Home Improvement stores in three states and the FiveStar Food Marts in Kentucky and Indiana.

Werner Gourmet Meat Snacks of Tillamook, Oregon, produces a zero-sugar jerky made with grass-fed beef, plus meat snacks in flavors ranging from sweet to traditional. The company has recognized regional flavor preferences when it comes to meat snacks, according to Lauren Kottre, director of marketing.

“Honey glaze does well in the Pacific Northwest, chipotle does well in the South and Southwest and teriyaki does well nationwide,” she said. “We’ve also seen a move from jerky to meat stick products, especially in convenience stores. For instance, our three-inch-long mini meat sticks are wildly popular across the country. I think it’s because they come in large packages and are easy to grab and go. One serving is three mini meat sticks—less than an ounce. You can eat one mini stick in two bites.”

One benefit of selling meat snacks is that they’re in demand all year long. “You do see their popularity increase in the summer months, because people are on the road and traveling,” Kottre said.

MEAT SNACKS SHOPPERS Americans love snacking, with younger consumers helping to grow that trend. According to Mintel, the CONVENIENCE.ORG

March 8-9, 2022 Virtual Live

Our Business. Our Future.

Your participation and support is the key to maintaining a strong voice in DC to protect our industry year after year.

Plan now to join us in March to advocate for your business, and ultimately, all c-stores across the U.S. convenience.org/DOH2022

increase in meat snacks consumption is driven by consumers, who “strongly skew millennial and Gen Z.” The average jerky customer for Wenzel’s Farm of Marshfield, Wisconsin, is a male in his 20s or 30s, although “we do have customers that span all age ranges,” said Mark Vieth, president, Wenzel’s Farm. “Your typical Wenzel’s customer is a hard-working, grassroots person who is looking for quick and satisfying fuel for their on-the-go life. They want a hearty snack that fills them up when they don’t have time to eat a full meal.”

PRIVATE-LABEL SUCCESS Casey’s based in Ankeny, Iowa, carries a huge selection of private-label products, including five proprietary meat snack flavors that made their debut in January.

“It’s a category that gives us an opportunity to offer a high-quality product at a real value,” said Eric Long, the chain’s director of private-label brands. “There is not a lot of competition at our price point. The cheapest brands are about $7 or $8 per bag. We’re about $1 a bag cheaper, but we’re still able to deliver better margins on private brands than other brands. [Since January], we’ve bounced back and forth between being the No. 1 and No. 2 seller in the category.”

Currently, Casey’s offers original, bacon, teriyaki, pepper and sweet-and-hot flavors, but the company hopes to broaden that selection. “There’s a lot of runway in the category,” said Long. “Five or six years ago, we wouldn’t have considered a bacon jerky. But we’re keeping our finger on the pulse of where the category is going. We want to be on the front end of innovation.”

Late last year, Irving, Texas-based 7-Eleven announced a milestone of selling $1 billion in private-label products in a single year. Among those sales were meat snacks.

“Having our own private-brand line of beef jerky and snacks has given us the opportunity to experiment and create new, unique and exclusive flavors that are driven by customer feedback and marketplace trends,” said Amy Werth, senior director of private brands, 7-Eleven. “Our 7-Select Jack Link’s Beef Jerky assortment features savory flavors such as Brown Sugar Bourbon, Bold Cracked Pepper, Mahalo Teriyaki and the classic Signature Recipe.

They put a fun 7-Eleven twist on classic jerky flavors that people know and love.”

The convenience retailer’s proprietary beef snacks have performed well nationwide and particularly in Southern states, she said.

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CONTINUED INTEREST “As consumers’ interest in high-protein diets has increased over the past three years, we’ve seen slight sales growth,” 7-Eleven’s Werth said. “This year alone, we’ve seen an increase in overall sales for our private-brand beef snacks because we continue to prioritize and deliver great quality items at valuable prices.”

C-store retailers typically merchandise meat snacks on a store endcap, but there are other options. “Endcaps are great for merchandising jerky, but we have different displays,” said Kottre.

“We have spinner racks that give customers a cascading view of the products.”

Five or six years ago, we wouldn’t have considered a bacon jerky. But we’re keeping our finger on the pulse of where the category is going.

Said Vieth, “Our products do very well at the point of sale, as well as in refrigerated sections or anywhere customers are looking for a quality, healthy, tasty snack. Additionally, we have merchandising options to fit retailers’ needs.”

Get jerky and meat snacks in front of the dieters and the health-conscious younger consumers, Phillips recommends. “We like to promote our products in the better-for-you section, the keto section and the health-food area of the store,” she said. “The packaging helps us. Customers who are really looking for zero sugar will check out the ingredients to make sure the product is clean.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer.

See more of her articles at patpape.wordpress.com.

CONVENIENCE.ORG

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Revisit all of the highlights, the big moments, purchase on-demand education sessions and sign up to be notified when registration opens at nacsshow.com

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OCTOBER 1-4, 2022

COOL NEW PRODUCTS This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology. Products are considered “new” this year if they’ve been introduced since October 2020.

The products featured here also can be seen at www.convenience.org/coolnewproducts.

NEW TO THE INDUSTRY

NEW DESIGN

David’s Cookies

Candy Dynamics

IW/IP Retail Ready Items

Toxic Waste® Mega Slime Lickers®

Desserts & Snacks Made Easy!

They’re Bigger and Better!

Introducing Individually Wrapped/Individually Packaged Retail Ready Products! All items are Thaw & Serve with a scannable bar code and nutritional information on the packaging. Product lines include: Brownies in 5 varieties - each case includes a display tray; Muffins in 5 varieties; Edible Cookie Dough Cups in 4 varieties; Gluten Free Cookies and Brownies; Layer Cake Slices; Cheesecakes to Go and 6” Pies. For more information or samples: contactus@davidscookies.com.

TikTok’s favorite candy just got BIGGER! The new Mega Slime Licker® from the makers of Toxic Waste® reinvented satisfying your sweet tooth. The roll-on application colors your tongue based on our two flavors: Blue Razz and Strawberry. Kids around the world have shown their love for the product with #SlimeLickers on TikTok and Instagram.

They can handle the sour, can YOU? 317.228.5012 I lking@candydynamics.com I toxicwastecandy.com

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NEW FLAVORS

NEW TO THE INDUSTRY

Diageo Beer Company

DSD Express

Smirnoff Seltzer Pink Lemonade

StickerMania

A FRESH TAKE ON A FAVORITE

Heavy Duty 3 Pack Vinyl Stickers

Ice-cold lemonade remains hot for shoppers—all year round. And now it’s time for a new take with Smirnoff Seltzer Pink Lemonade! This refreshing tasting combination of tart juicy lemon notes and sweet red berries is the perfect way to chill out. With only 1 gram of sugar and 98 calories in every retro-designed can, it’s also the perfect way to turn up the energy. This unique seltzer is right on trend and on the money. Call your Smirnoff Seltzer distributor today. SMIRNOFF Seltzer. Premium Flavored Malt Beverage.

The Smirnoff Co., New York, NY. PER 12 fl. oz.: 90 Cals, 1g Carbs, 0g Protein, 0g Fat.

StickerMania is proud to offer an industry first, our sticker packs are filled with 3 various sized heavy-duty weather resistant outdoor rated vinyl stickers for the price of one!

Customers get a large heavy-duty vinyl sticker perfectly sized for their vehicle or large cooler, a medium-sized sticker perfect for their laptop or water bottle, and a small-sized sticker optimized for cellphones or helmets. For more information visit www.dsdexpress.net or call toll free 866. 882. 6674

NEW FLAVORS

NEW DESIGN

Toysmith

Krispy Krunchy Chicken®

Joy Tower 360⁰

Sunrise Breakfast Sandwiches

Turn Heads and Profit

Because Your Coffee Is Lonely

Premium Impulse toy display with 68 high-quality, best-selling items Constructed with sturdy acrylic bins and durable metal frame on casters 360 degrees of merchandising space with bins and pegs $30,000-$50,000 annual revenue per store $4000-$6500 per sq ft annually 40” W x 24” D x 64.5” H For more info contact Katie Olson: katie@toysmith.com CONVENIENCE.ORG

Krispy Krunchy® now has all dayparts covered! Our NEW Sunrise Breakfast menu allows operators to build a professional turnkey program with the support of our Krispy Krunchy® field team members. Our aim is to help reach additional consumers with easy-to-serve products that can be oven-baked or merchandised in retail cold space.

Breakfast items include breakfast sandwiches with egg, cheese, and your choice of sausage, bacon, or Canadian-style bacon, breakfast Crispitos®, empanadas, blueberryflavored biscuits, & honey butter biscuits.

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NEW TECHNOLOGY

Lancer™ Worldwide IBD Bold 30i™

Welcome to the next generation of beverage dispensing.

From the company that has brought you groundbreaking innovations for decades comes the award-winning IBD Bold 30i™. With a sleek design, digital touchscreen merchandiser and Lancer Link™ IoT connectivity, our breakthrough IBD Bold 30i will propel your customers’ beverage dispensing experience into the future – in just 30” of counter space. Explore our boldest dispenser yet at lancerworldwide.com/NACS.

NEW TECHNOLOGY

21 # 20

ICK 1P

Mashgin Inc. The Touchless Checkout System

Voted The #1 Cool New Product at The 2021 NACS Show

Give customers a faster and safer checkout experience with Mashgin’s Touchless Checkout System. Mashgin uses computer vision to instantly identify multiple items at once without looking for a barcode - just place items down on the tray then pay. Convenience stores using Mashgin improve profit margins by over $800/week. Mashgin is already operating in over 500 convenience stores, cafeterias, and sports stadiums across the US and has run over 20 million transactions to date. To see if Mashgin is right for you, reach out to our VP of Partnerships Jack Hogan at jack.hogan@mashgin.com. Learn more at www.mashgin.com

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NEW FLAVORS

Monster Energy Company Monster Reserve

Monster Reserve Watermelon and White Pineapple

Introducing the NEW MONSTER ENERGY RESERVE line! Bringing popular fruit forward flavors to extend our core family. MONSTER RESERVE WATERMELON is the perfect nostalgic summer flavor that can now be enjoyed all year long. MONSTER RESERVE WHITE PINEAPPLE is our take on the classic, tropical fruit flavor with different notes blended to give you a truly unique and delicious experience. These flavors are consistently ranked in the top 5 flavors that shoppers of all ages prefer. Plus, full sugar, full flavor energy drinks are still the fastest growing segment within the category. It’s the same beast with new flavors. Available nationwide on October 11, 2021. For information, call 951.739.5522 www.monsterenergy.com

NEW TO THE INDUSTRY

NEW TECHNOLOGY

SAM Machine Corp.

Stewarts Enterprises, Inc

SAM Self-Service Check Cashing Machine

Stewart’s Spiked Seltzer

Stress Free Check Cashing!

Iconic Just Got Spiked

Increase foot traffic & in-store cash transactions Update/offer a valued service to your customers Never cash a bad check - The SAM No Fraud Guarantee Exclusivity - Block out your competition Private & safe for customers Collect fee revenue Get in touch: 440-252-5019 or info@samcodirect.com CONVENIENCE.ORG

Nearly 100 years after the birth of Stewart’s, meet Stewart’s Spiked: sparkling and crisp hard seltzers spiked with Stewart’s classic flavors! At 5% ABV, each 12 fl oz slim can contains just 100 calories, 0/1g sugar and 1g of carbs. They are gluten free, vegan and made with natural flavors. Nostalgia never tasted so good. Introductory flavors are the iconic Root Beer, Orange Cream, Black Cherry and the all new Raspberry Lime. For more information visit www.stewartspiked.com or email info@stewartspiked.com.

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HEALTH WELLNESS

ZOA ENERGY ZOA ENERGY ZERO SUGAR AND 100 CALORIE

THE FASTEST GROWING BRAND IN ENERGY

Founded by Dwayne “The Rock” Johnson, ZOA is re-defining the energy category by offer a healthier option, reaching a much broader audience. ZOA offers a balanced profile of 160mg of natural caffeine from green tea and green coffee (a typical coffee in this size has 240 mg of caffeine), along with B vitamins. ZOA also features 100% daily value of Vitamin C, as well as branched-chain amino acids, choline, and turmeric. Available in 5 amazing flavors in both Zero Sugar and 100 calorie versions, with 2 new flavors launching in January 2022. Visit zoaenergy.com or follow us at @zoaenergy.

NEW FLAVORS

NEW TO THE INDUSTRY

Werner Gourmet Meat Snacks Inc.

1606 Corp

Zero Sugar Pepper Smoked Mini Meat Sticks

TruZro - A Tobacco-Free Smoking Alternative

Protein Packed with Zero Sugar

FREE CARTON!* $3.00 per pack

Our Zero Sugar Pepper Mini Meat Sticks start with premium pork and beef, seasoned with our family’s own blend of sugar-free spices, before being natural-wood-smoked to slightly spicy peppery perfection. This extension of our top-selling mini meat sticks line comes in a 10-ounce big bag packed in an 8-count shelf display case. Currently available for distribution. Call 800-459-6420 or email marketing@wernerjerky.com for more information. WernerJerky.com

BIG MARGINS! $5.99 per pack SRP. TruZro is a tobacco-free smoking alternative with ZRO tobacco, nicotine or additives. TruZro discreetly delivers a fast-acting, low level CBD (<.3) with ZRO HEMP AROMA. Federally legal in the U.S. (2018 Farm Bill Act). THIS PRODUCT IS NOT IMPACTED BY TOBACCO, NICOTINE, OR E-CIGARETTE LEGISLATION. Promotional materials target tobacco users, product available in 5 flavors. Must be 21.

Contact www.sales@truzro.com *See offer details online at www.truzro.com

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INDEX HEALTH AND WELLNESS

ZOA Energy................................................................................ 92 NEW DESIGN

Candy Dynamics........................................................................ 88 Toysmith...................................................................................... 89 NEW FLAVORS

Diago Beer Company............................................................... 89 Krispy Krunchy Chicken.......................................................... 89 Monster Energy Company....................................................142 Werner Gourmet Meat Snacks.............................................. 92 NEW TECHNOLOGY

Lancer...........................................................................................90 Mashgin........................................................................................90 SAM Machine Corp...................................................................145 NEW TO THE INDUSTRY

1606 Hemp Corp........................................................................ 92 David's Cookies......................................................................... 88 DSD Express............................................................................... 89 NACS SOI Report...................................................................... 93 Stewarts Enterprises Inc....................................................... 144

NEW TO THE INDUSTRY

NACS NACS State of the Industry Report® of 2020 Data

Discover What’s Next—And How To Get There Faster

Today’s dynamic landscape requires agility—a balance of efficiency and effectiveness to free up resources and fuel new growth. You have to know where to invest in technology and how to harness data to deliver targeted, personalized offerings and customer experiences—it’s essential to winning trips and edging out competition. So, what’s next and how can you get there faster? For more than 50 years, our industry has relied on this report to answer this question and more. Understand the ‘big picture’ with data and analysis on economic, market and shopper dynamics; Maximize effectiveness and profitability with insider access to aggregate financial, operational and category data from more than 27,000 convenience stores across the U.S.; and Benchmark against top performers in the industry and determine key drivers to their success. Get your digital copy and reap the future-altering benefits.

Convenience.org/SOI

CONVENIENCE.ORG

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GAS STATION GOURMET

In the Eye of a Hurricane

In hard-hit Houma, Louisiana, Buchiki’s looks to rebuild three c-stores.

BY AL HEBERT

James Ricker stands in the wrecked forecourt of Buchiki’s on Park Avenue in Houma, Louisiana, which took a direct hit from Hurricane Ida. Ricker is chief operations officer for Gapp Fuel & Food Services, which operates three Buchiki’s locations. The Park Avenue store is a total loss.

O

n Sunday, August 29, Hurricane Ida made landfall on the Louisiana Coast as a Category 4 storm. It turned out to be one of the strongest storms ever to hit the Gulf Coast. By the next day, more than a million utility customers were without power.

Damage was catastrophic. With no power, c-stores could not pump fuel, credit cards were useless and tensions were high.

Thirty miles from the coast is Houma, Louisiana.

With a population of about 30,000, the city was directly in the path of the outer eye wall. There, Gapp Fuel & Food Services operates three convenience stores under the name Buchiki’s. We profiled Buchiki’s in March 2020, so after the storm cleared, our thoughts turned to finding out how the c-stores had fared.

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Each location sustained damage. Park Avenue, a small store the company acquired in December 2018 and opened in 2019, is a total loss. “The roof collapsed, the canopy is gone and for the most part it’s not salvageable,” James Ricker, chief operations officer of the company, shared when Gas Station Gourmet visited him on-site in September.

“We’re waiting to see if we can get it operational to support the community.” Gapp Fuel & Food Services aims to “build a deli with a small c-store and small cooler,” on the site, but for now, “things are up in the air,” he said.

Construction on a new location was recently completed, and there were plans for a grand opening. Ida changed that. “The wind tore part of the roof off. There’s damage to the ceiling and sheetrock, and the inventory is a total loss. It could CONVENIENCE.ORG

We let our personal issues take a back seat to helping the community deal with this.

To manage the long lines of motorists waiting for fuel at the West Main location—the only operational store after the storm—Buchiki’s employees, such as Melissa (above), directed traffic into and through the forecourt. The newest Buchiki’s c-store was set to open just before Hurricane Ida struck.

be operational in a month or a month and half,” Ricker said. The only functioning store of the three is the 5912 West Main Street location.

CHAOS AT THE PUMPS It’s often difficult for people to understand the widespread impact of a hurricane. Property is damaged, destroyed or completely blown away. People are emotionally wrought, often trying to comprehend the damage to their homes, while desperately trying to reach family members when there is no cell service, internet or electricity.

Fuel becomes a major priority. People search frantically for gas stations that are operational. Lines are long, and patience is short. Managing the forecourt is imperative to avoid chaos and violence.

As lines of cars stretch down the street, the first thought might be to reach out to local law enforcement to help manage traffic. Ricker found that they were stretched very thin and didn’t have the resources to send officers out.

“Me, our chef and all upper management put on neon vests to direct traffic. Customers are fighting at the pumps. Guns have been drawn. We’re trying to make the customer experience CONVENIENCE.ORG

as seamless as possible. We have an employee at the entrance, one in the forecourt and one at the exit to keep cars from pulling in and to make sure cars exit in one direction,” Ricker explained.

“It was all hands on deck.”

As the days passed, Ricker found customers appreciated the extra effort. “I cannot tell you how many compliments we get. Our service is so fast.” Imagine customers waiting 45 minutes for gas only to drive up to the pump and find out there’s none. “We let people know we’re about to run out of gas,” Ricker said. “We have lines two or three blocks long.”

Securing fuel is a major challenge.

“Currently, our fuel distributor, Waguespack Oil, has been great in getting us fuel. I can get fuel every 32 hours. I used to be able to get fuel in 10 or 12 hours. Yesterday, I got 11,000 gallons of fuel, and by the end of the day, I may have had 1,000 gallons in the tank. Some refineries are closed or only partially operational. I set up a standing order every 32 hours. The demand for it is so high.”

SECURITY Even in the best operating circumstances, store security is always top of

NOVEMBER 2021 |

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GAS STATION GOURMET

Al Hebert is the Gas Station Gourmet and showcases America’s culinary treasure— gas station cuisine. He shares these stories and on occasion, a recipe or two at www.GasStationGourmet.com.

He is a NACS Magazine contributor, bringing foodservice ideas to readers.

mind for gas station operators. The need for vigilance is even more heightened following natural disasters.

“Criminals know that this is cash only,” the Buchiki’s COO said. Always No. 1 is the safety of our employees. Gas stations are targets. I don’t like to have my stations open past 10 p.m. Right now, we close at six because of parish mandates.

We do everything in our due diligence to make sure facilities are well lit. We also keep our relationship with police good. We offer them free drinks,” he said, adding, “We had looting at the West Park Avenue location. [Looters] took cigarettes, liquor and beer and ran out.”

In trying times like this, helping the community makes the store successful.

It’s the little things that count.

“A guy tried to jump a curb to exit. We had to get him off the curb when he got

stuck. We’ve given away free bread. We let our personal issues take a back seat to helping the community deal with this.

The hardest part is helping friends and family and taking care of your own stuff.

No one got out of this storm scot-free,” he said.

Ricker has a positive outlook as he surveys what was once the newest and shiniest location. He looks a bit weary in his orange vest but knows customers need Buchiki’s more than ever.

“We don’t know what customers are going through. We cannot help everybody, but we will help as many people as we possibly can. At the end of the day, these are just things. The health and safety of our families and our employees are the most important things,” Ricker said, adding, “Things don’t happen to you, they happen for you.”

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GLOBAL TRENDS

The C-Store Market in Thailand With about 20,000 stores across the country, the convenience channel has more potential for growth.

BY PETER GALE

7-Eleven was the first convenience chain in Thailand, opening its first location in 1988. Today, it serves more than 11 million customers a day nationwide across 12,740 c-stores.

I

n the heart of Southeast Asia, Thailand is renowned as one of the world’s favorite tourist destinations, with its stunning beaches in the south and mountainous areas in the north of the country. Tourism is important to the Thai economy—prior to COVID-19 it was attracting nearly 40 million tourists a year, contributing nearly 20% of the country’s gross domestic product.

Over the past 40 years, Thailand’s 70 million population has benefited from consistent economic growth, moving from a low-income to an uppermiddle-income country with an average annual household income per capita of just under $4,000.

This economic dynamism has been matched by a rapidly developing retail trade. The industry changed significantly in the late 1990s

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| NOVEMBER 2021

following the Asian financial crisis when large Thai conglomerates sold off their valuable retail assets to leading global retailers. Ahold led the way, followed by Carrefour, Casino and Tesco.

This influx of retailers helped accelerate development and professionalism within the industry and allowed it to leap ahead of many of its neighboring markets.

The market has now moved full circle, as with nearly every Asian market, and the international retailers have sold up and local companies now dominate the market. These are led by CP All Public Company Ltd., owners of 7-Eleven, Tesco Lotus and Makro; Central Retail, owners of TOPS, TOPS Daily and FamilyMart; and Berli Jucker Pcl (BJC), owners of Big C and Mini-Big C. CONVENIENCE.ORG

NACS GLOBAL CALENDAR MARCH 1-3, 2022 NACS Convenience Summit Asia Singapore www.convenience.org/csa

MAY 31-JUNE 2, 2022 NACS Convenience Summit Europe Berlin, Germany www.convenience.org/cse

OCTOBER 1-4, 2022

FamilyMart has had a presence in Thailand for nearly 20 years, originally operated by FamilyMart Japan. The 900-plus store chain is primarily focused on Bangkok and top tourist destinations.

The 2000s saw rapid development of hypermarkets, supermarkets and personal care stores, as well as convenience stores. While hypermarkets were the dominant channel early on, the last decade has seen a dramatic rise in the importance of the convenience channel, which now boasts around 20,000 stores, spread throughout the country.

THE THAI CONSUMER Convenience stores in Thailand have one of the highest shares of the packaged grocery market of any country globally with over one-third of all sales going through the channel. The shift has occurred as shoppers in urban areas moved to an on-the-go lifestyle looking for quick solutions to save time. Increased traffic congestion in major cities has also helped push proximity retail as shoppers do more top-up shopping to meet their daily needs.

Nearly all Thais regularly use convenience stores and visit them frequently, often four or five trips per week—a frequency only matched by shoppers in Taiwan. And they have a lot of proximity formats to choose from. In addition to the modern trade, there is still a very strong traditional trade with over 400,000 mom-and-pop stores. These stores provide the most convenient location for shoppers to buy impulse products and some daily necessities, particularly in upcountry rural locations.

CONVENIENCE.ORG

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7-ELEVEN AND FAMILYMART Within the modern self-service convenience channel, stand-alone traditional stores lead the way, headed by 7-Eleven and FamilyMart.

7-Eleven is the dominant market player with 12,740 stores and plans for a further expansion of 700 stores in the next 12 months, despite the impact of COVID-19.

7-Eleven was the first convenience chain in Thailand, opening its first store in 1988.

Today, its store portfolio serves over 11 million customers a day. While current sales are split 70:30 between food/beverage and nonfood products, the chain is now focusing on how to develop from a convenience food store to an “all” convenience store through leveraging online channels.

7-Eleven has driven innovation in the Thailand market, launching its Thai Smart Card (loyalty) in 2001 and Smart Purse Payment Card in 2006. Its digital presence has developed since 2014, including its All Online 7-Eleven site and 7-Eleven mobile app. It now has a combined 40 million online accounts across all its online channels. It is also one of the strongest brands in Thailand, winning “Thailand’s Most Admired Brand & Why We Buy” in 2020 for the eighth consecutive year.

FamilyMart has been in Thailand for nearly 20 years, originally operated by FamilyMart Japan before selling 51% to Central Retail in 2012 and eventually 100%

Nearly all Thai consumers regularly use convenience stores and visit them frequently, often four or five trips per week—a frequency only matched by shoppers in Taiwan.

NOVEMBER 2021 |

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GLOBAL TRENDS

in 2020. Currently, there are over 900 stores focused on meeting customers’ daily food and other needs from stores between 100-150 square meters. The chain is primarily focused on Bangkok and key tourist destinations, compared to 7-Eleven which operates nationally.

COMPETITION AND GROWTH Besides stand-alone convenience stores, there are over 4,000 petrol convenience outlets including both the leading chains as well as specialist fuel chains such as Jiffy, owned by PTT (the largest operator of petrol stations); Shell Select; TigerMart and others.

The typical highway gas station in Thailand usually has a wide array of food and beverage outlets as well as a convenience store, providing significant competition for food-on-the go shopping missions.

It’s not just at petrol stations that convenience stores face this level of competition. Everywhere you look on Thai streets there are opportunities to purchase food and drink from street vendors Convenience stores in Thailand selling fruit or sweet Thai have one of the highest shares of desserts to pavement restauthe packaged grocery market of any rants, as well as a wide array of country globally with over one-third fast-food outlets. Often vendors of all sales going through can be seen selling their prodthe channel. ucts right on the store’s doorstep.

Despite this, foodservice has seen rapid development over the past five years, with some stores now preparing food on-site, benefiting from Thais’ love of food and snacking at all times of the day.

Thailand has also seen significant growth from another convenient format—the minimarket, or proximity grocery store—which is primarily focused on meeting everyday grocery needs including fresh food but also targeting on-the-go shopping missions.

The leading chains are Tesco Lotus Express with over 1,600 stores typically sized between 150-250 square meters, Peter Gale is a retail analytics Mini-Big C, TOPS Daily and the rapidly consultant and a NACS expanding CJ Express (500+ stores), relationship partner based in part of the Carabao Group, producers of Bangkok, Thailand.

Energy Drinks.

JUST THE FACTS

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| NOVEMBER 2021

TOPS Daily is a minimarket that offers groceries, fresh food and readymade meals. Coffee bars and co-working spaces are new innovations.

These formats continue to innovate with new customer offers—for example, TOPS Daily has been introducing ready-made meals, coffee bars and even co-working spaces to its stores.

A LOOK AHEAD COVID-19 has significantly impacted the Thailand retail market with several lockdowns and curfews over the past 18 months as well as the loss of tourism, causing the economy to contract by 6% in 2020. This has led to household debt increasing to an 18-year high at 90.5% of GDP, up from 85% in Q4 2020.

With many people working from home, store opening hours being limited by the overnight curfews and interprovincial travel discouraged, customer traffic has been significantly impacted, which has led to store closures at least for the short term. While convenience stores have benefited from their proximity to shoppers, a restricted range of everyday essentials has limited that benefit. Most convenience stores have leveraged online services and use of delivery bikes to respond to the market challenges.

In the longer term, the outlook for the convenience channel continues to look positive, particularly as it further leverages the opportunities from digital commerce that have developed over the past 18 months.

This article was reprinted with permission from Global C-Store Focus, the monthly newsletter from U.K.-based Insight; www.insightresearch.co.uk.

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As Convenience Grows, the World is Getting Smaller

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31 May - 02 June, 2022

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Singapore

Thought leadership. Powerful commercial connections. Forward looking innovations and insight. Count on NACS to bring our global industry together in more places around the world.

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CATEGORY CLOSE-UP / WINE

Vintage Year

Driven by restaurant closures and packaging inroads, wine sales surge.

W

hile last year’s impressive gain in average store sales may have been a blip, the wine category is certainly gaining attention

JUST THE FACTS Average store sales of wine soared 21.1% last year to $22,818 from $18,838 in 2019, according to the NACS State of the Industry Report of 2020 Data.

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| NOVEMBER 2021

among convenience retailers for its recent packaging innovation, strong margins and growing potential. Indeed, wine is increasingly finding placement on c-store shelves and in cold boxes and, according to some marketers and merchants, is well positioned to take share from beer and hard seltzers.

With average store sales soaring 21.1% last year to $22,818 from $18,838 in 2019, according to the NACS State of the Industry (SOI) Report of 2020 Data, wine emerged as one of the top category performers in a year dramatically impacted by the COVID-19 pandemic.

“Last year’s performance was an anomaly. Wine doesn’t usually see 20% growth,” remarked Jayme Gough, NACS research manager. Much of the gain can be attributed to the shutdown of bars and restaurants and “people staying home,” she explained. Gough added that through June of this year, CSX monthly data showed that wine sales were stabilizing.

Nevertheless, while state and local laws vary, wine is increasingly available in c-stores. According to SOI data, 54.3% of c-stores offered wine in 2020, up from 52.1% in 2019, marking three consecutive years of growth. The recent popularity of hard seltzers, including those that are wine based, could be CONVENIENCE.ORG

iStock.com/valentinrussanov

BY TERRI ALLAN

Industry Sales

% of In-Store Sales 2019

2020

0.43% 0.53%

% of Stores Selling

Avg. Sales/Store 2019

2019

2020

2020

52.1% 54.3%

$18,838 $22,818

Source: NACS State of the Industry Report of 2020 Data

iStock.com/hunur; flyparade; karandaev

contributing to increased retailer interest. As such, NACS category definitions have been expanded to include “coolers/ wine cocktails” to reflect the emergence of the ready-to-drink products.

PACKAGING INNOVATION Recent packaging innovation such as cans and Tetra Paks has aided the wine category in c-stores. Babe wine, marketed and distributed by AnheuserBusch InBev (AB), and packaged exclusively in cans, is seeing big growth in the channel. “Cans are the right format for wine to meet the largely immediate consumption occasions people are shopping for in convenience,” said Chelsea Phillips, vice president, beyond beer, at AB. To merchandise, the company is “applying the same tricks of the beer trade” to Babe, including twofer price promotions and the use of suction cups CONVENIENCE.ORG

in the cooler to drive trial, she noted, as well as warm four-packs to encourage trade up. AB is also marketing wine in 500-ml. Tetra Paks via its partnership with the Wine Group on the recently launched 101 North brand. Already, more than 75% of the brand’s volume is sold in c-stores, Phillips said, driven by the Tetra Pak. “Tetra Paks are proving

THE POWER OF CSX DATA CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience.org for a complimentary executive walkthrough.

NOVEMBER 2021 |

103

CATEGORY CLOSE-UP / WINE

PER STORE, PER MONTH SALES

2018

2019

2020

2021

$2,000 $1,800

$1,620

$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

to be a great fit for the c-store wine buyer due to their convenience and portability,” she noted.

Herb Smith, vice president, customer development for E&J Gallo Winery, agreed that glass bottle alternatives can be ideal for many c-store shoppers.

“Consumers often want to enjoy a single glass of wine, so the 750-ml. package can sometimes be a barrier,” he said, while cans, Tetra Paks, half bottles and three-liter boxes can be more convenient.

Gallo’s Vendange, Black Box, Barefoot and Liberty Creek brands are available

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| NOVEMBER 2021

in Tetra Paks, with the Andre and Dark Horse labels sold in cans.

The alternative packaging and profit margins that surpass that of beer are prompting c-stores to stock, expand and merchandise their wine offerings. Joe Peleg, CEO and founder of Fun Wine— which is packaged in both aluminum cans and 330-ml. aluminum bottles and available in 42 states—said he is seeing increased interest in the wine category from convenience retailers. “A lot of retailers are beginning to question the space they have devoted to hard seltzers

CONVENIENCE.ORG

iStock.com/domin_domin; malerapaso

Source: CSX; www.csxllc.com

Subcategory Performance % of Sales

WINE

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2019

2020

2019

2020

2019

2020

2019

2020

Table Varietal Wine

49.6%

50.8%

$9,344

$11,602

$2,265

$2,848

24.24%

24.55%

Wine Cocktails

25.9%

27.8%

$4,877

$6,344

$1,151

$1,484

23.61%

23.40%

Fortified Wine

17.9%

15.5%

$3,374

$3,535

$923

$1,073

27.35%

30.36%

Champagne/Sparkling Wine

4.6%

4.4%

$871

$994

$210

$262

24.08%

26.34%

Other Wine TOTAL

2.0%

1.5%

$372

$342

$93

$86

24.85%

25.24%

100.0%

100.0%

$18,838

$22,818

$4,639

$5,759

24.63%

25.24%

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions.

Source: NACS State of the Industry Report of 2020 Data

Cvoicesw_June2021_half.pdf

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5/12/21

3:28 PM

Get inside consumers’ minds.

And shape your future accordingly.

This year, you won’t just know why.

You’ll see why.

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NOVEMBER 2021 |

105

There’s more awareness in wine, and c-stores are devoting bigger spaces to the category.

Terri Allan is a New Jerseybased freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com, and on Twitter at @terriallan.

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| NOVEMBER 2021

as it now looks like the expected growth for that product may not be reachable,” he explained. “There’s more awareness in wine, and c-stores are devoting bigger spaces to the category.”

STRONG SUBCATEGORIES Among the subcategories that are performing particularly well are champagne and sparkling wines, table and varietal wines, such as rosé, and coolers and wine cocktails. According to Gough, coolers and wine cocktails represented nearly a third of wine sales in 2020 and have gained share the past two years. Through June 2021, it was the only subcategory holding up against its year-earlier performance, she added. At East Delaware Pantry in Chicago, owner Michael Patel reported, “Rosé is still surging” and contributing to growth in 2021 yearto-date wine sales. Unlike other stores, East Delaware—which caters to tourists and business travelers in downtown Chicago—didn’t see an uptick in wine sales last year, but according to Patel, “this year, business is better.”

At Mendez Fuel in Miami, meanwhile, Andrew Mendez, co-owner, has found a niche with natural wines, wines generally produced without pesticides or herbicides and with few or no added ingredients.

Prompted by requests from customers, Mendez researched the wines and found “they’re very much like craft beer,” a category the c-store chain has been very

successful with, he said. “Customers have been coming in like crazy,” the retailer said of response to the selection, adding that natural wines now outnumber traditional wines at Mendez Fuel. “I’ve gone all in. I’m even looking at taking some space from beer.” Priced at $22 to $28 a bottle, customers often purchase two at a time, Mendez said.

While the c-store channel will be hard pressed to surpass last year’s stellar performance for the wine category, there’s no question that strides are being made.

“Even if sales come in flat this year, that would be a good performance because it means maintaining the growth from last year,” Gough noted.

Wine marketers are bullish for the category’s long-term prospects in c-stores. Pointing to single-serve and other alternative packaging making inroads in the category, Gallo’s Smith said, “The future is bright.” AB’s Phillips added, “Consumers are looking for great tasting and convenient options, which is a segment wine can win. I expect to see continued growth of wine in c-stores.”

Gough cautioned that while “wine fits some markets better than others,” the emergence of cans and the ability to place wine in the singles cooler allows the category to be more visible to consumers.

“And with margins it makes the category attractive in terms of potential profitability,” she said.

CONVENIENCE.ORG

iStock.com/pavlinec

CATEGORY CLOSE-UP / WINE

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L iggett Vector Brands Inc............................................................15 (877) 415-4100 www.liggettvectorbrands.com

Premier Manufacturing Inc.............................................................. 5 & 41 www.gopremier.com

Buzzballz LLC........................................................................................... 61 www.buzzballz.com C ash Depot....................................................................................17 (800) 776-8834 sales@cdlatm.com www.cdlatm.com CHS Inc. (Cenex Petroleum)....................................................................79 www.cenex.com Cool New Products Guide................88-93 www.convenience.org/Media/ NACS-Magazine/Cool-New-Products

Diaego Beer Company USA.....................................................................47 www.diageo.com E&J Gallo..................................................................................................27 www.gallo.com GSTV..........................................................................................................31 www.gstv.com T he Hershey Company..................................................................3 www.hersheysolutions.com Invenco Group Limited .......................................................................... 19 (877) 515-0939 www.invenco.com

CONVENIENCE.ORG

L iving Essentials LLC (5-hour ENERGY)........................................7 (866) 960-1700 www.5HErewards.com McLane Co. ................................................................... Back Cover www.mclaneco.com NACS Convenience Voices..................................................................... 105 www.convenience.org/voices NACS Global Events................................................................................101 www.convenience.org

RadiusAI Inc.............................................................................................65 www.radiusai.com Rich Products Corporation......................................................................51 www.richs.com Southeast Petro Food Marketing Show.................................................34 www.sepetro.org Swedish Match North America...................................................29 (800) 367-3677 www.smna.com

NACS HR Forum.........................................................................................4 www.convenience.org/hrforum

Swedish Match North America (Zyn)...........................................9 (800) 367-3677 www.smna.com

NACS Day on the Hill...............................................................................85 www.convenience.org/DOH2022

Toysmith..................................................................................................69 Katie@toysmith.com

NACS Leadership for Success..................................................................96 www.convenience.org/leadershipforsuccess

Vitamin Energy LLC.............................................................................10-11 www.vitaminenergy.com

NACS Retail Membership..........................................................................6 www.convenience.org/renew

ZOA Energy..............................................................................................23 www.zoaenergy.com

NACS Show...............................................................................................87 www.nacsshow.com NACS SOI Summit....................................................................................97 www.convenience.org/SOISummit

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Sim C-Store Online PC gaming platform Steam has released a video game that lets players run a gas station, and much like real life, they aren’t handed a shiny new gas station complete with a robust customer base. Gas Station Simulator starts out with the player driving a car through the desert, pulling into a dilapidated gas station and buying it from the owner. Out of sheer luck, your uncle in the game calls to tell you that your grandfather owned the station a long time ago, and he’s happy to help you revive it.

Players have to build the station from the ground up, including breaking down 2x4s to get into the station and driving a front loader to remove sand from the parking lot and pumps. Then the customers start showing up, and you fill up their cars and sometimes give them a tuneup. You even ring up their purchases inside, and just like in real life, the faster you move the line, the more successful you become.

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Dad Moves One Bakersfield, California, dad is unexpectedly gaining popularity on TikTok, and most of his videos are him dancing in the forecourts of gas stations. Tim Dobbs started a TikTok account after watching his daughters have fun with the app, but what started as funny videos of him dancing has turned viral. Dobbs has close to 2 million followers on TikTok, and some videos will get as many as 16 million views. With a gas station as his backdrop, he does whatever dance his followers request that day. Often, they’ll ask him to repeat dances for reasons such as, “Sorry, I was walking my kangaroo.”

Map It As the holiday travel season revs up, entertaining website VinePair created a map that shows which c-stores are in each region of the U.S. From Bartell Drugs in Washington state to CEFCO in Texas to Rutters in the mid-Atlantic and Daily’s in the South, this map lets travelers know which gas station(s) each region is known for. Oh, there’s no place like home (or a c-store) for the holidays!

CONVENIENCE.ORG

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HIGHER MARGINS FOR YOU, BETTER VALUE FOR YOUR CUSTOMERS To meet the growing demand for low-cost, high-quality items, Consumer Value Products (CVP) offers premium private label products that drive proven results with educated consumers and value shoppers alike. CVP researches, develops, and distributes a wide range of products in categories such as health and beauty, grocery, general merchandise, candy, snacks, pet products, and automotive. Our brands rival or surpass the quality of name brand alternatives.

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