NACS Magazine January 2026 by NACS Magazine

Advancing Convenience & Fuel Retailing

JANUARY 2026 TAKING CHARGE Frank Gleeson steps up as NACS CEO MARKETING MOVES Big ideas for small operators

Unmask Un MasK enDs trends e tR tHthe at wiwill lL be tHthat be roEs usTry he inD industry heroes ar. is yE tH this year convenience.org

We extend our sincere appreciation to our retailers for 70 years of unwavering support and partnership. Your dedication has made our success possible, and we look forward to continued collaboration, growth, and shared achievement in the years ahead.

ONTENTS NACS / JANUARY 2026

FEATURES

28 2026: What Will Power Convenience?

New products and tech developments are redefining experience-driven retail.

38 Head in the Game

NACS President and CEO Frank Gleeson talks leadership and what’s next for the industry.

46 Inside the Battle to Save Hemp Beverages

Cover: pialhovik/iStock. This page: LanaSham/Adobe Stock

‘The sky’s the limit’ for this category—but acting now is critical.

Small Operator, Big Ideas

Retailers are employing creative, highimpact strategies to attract customers that don’t break the bank.

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, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily.

ONTENTS NACS / JANUARY 2026

DEPARTMENTS 06 From the Editor 08 Faces of the Industry 10 NACS News 20 Convenience Cares 22 Inside Washington Frank Gleeson, the new president and CEO of NACS, is an experienced advocate for the industry.

64 Gas Station Gourmet 66 Category Close-Up Consumers continue to show that they are interested in backbar alternatives.

72 By the Numbers

IT’S A FACT

$5,801 CATEGORY CLOSE-UP PAGE 66 PLEASE RECYCLE THIS MAGAZINE 2 JANUARY 2026 convenience.org

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

Nestea06/iStock

The average gross profit dollar contribution per store, per month from OTP in 2024.

/ JANUARY 2026 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard VP of NACS Media & Strategic Communications (703) 518-4272 jlenard@convenience.org

CHAIR: Annie Gauthier, CFO/Co-CEO, St. Romain Oil Co. LLC (dba Y-Not Stop)

Ben Nussbaum Publisher & Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Leah Ash Editor/Writer lash@convenience.org Lauren Shanesy Editor/Writer lshanesy@convenience.org Noelle Riddle Editor/Writer nriddle@convenience.org Chrissy Blasinsky Digital & Content Strategist cblasinsky@convenience.org CONTRIBUTING WRITERS Al Hebert, Emma Tainter, Melissa Vonder Haar

DESIGN Ji Ho Creative Director jho@convenience.org Erika Freber Art Director efreber@convenience.org David Marvin Graphic Designer dmarvin@convenience.org

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

COME TOGETHER. DO MORE. Join us at conveniencecares.org

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

PUBLISHING Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

TREASURER: Lonnie McQuirter, Director of Operations, 36 Lyn Refuel Station OFFICERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Varish Goyal, Loop Neighborhood Markets; Charles McIlvaine, Coen Markets Inc.; Natalie Morhaus, RaceTrac Inc.; Travis Sheetz, Sheetz Inc. GENERAL COUNSEL: Doug Kantor, NACS MEMBERS: Lisa Blalock, BP North America Inc.; Brian Donaldson, Maxol Limited; Tony El-Nemr, Nouria Energy Corp.; Terry Gallagher, Gasamat Oil Corp./Smoker Friendly; Erin Graziosi, Robinson Oil Corp.; Raymond Huff, HJB Convenience Corp.

(dba Russell’s); Mark Jordan, Refuel Operating Co.; Thomas Love, Love’s Travel Stops & Country Stores; Crystal Maggelet, Maverik Inc.; Rich Makin, Wawa Inc.; Brian McCarthy, Blarney Castle Oil Co.; Andrew Mitchell, Toot’n Totum Food Stores LLC; Jigar Patel, Fastime; Stanley Reynolds, 7-Eleven Inc.; Kristin Seabrook, Global Partners LP; Doug Yawberry, Weigel’s Stores Inc.; Scott Zietlow, Kwik Trip Inc. PAST CHAIRS: Brian Hannasch, Alimentation Couche-Tard Inc.; Victor Paterno, Philippine Seven Corp. SUPPLIER BOARD REPRESENTATIVES: Bryan Morrow, Chobani & La Colombe; Kevin LeMoyne, The Coca-Cola Co.

NACS SUPPLIER BOARD SUPPLIER BOARD CHAIR: Bryan Morrow, Chobani & La Colombe CHAIR-ELECT: Kevin LeMoyne, The Coca-Cola Co. VICE CHAIRS: Mike Gilroy, Mars Wrigley; Jim Hughes, Supplying Demand Inc. dba Liquid Death; Danielle Holloway, Altria Group Distribution Co. MEMBERS: Tony Battaglia, PMI U.S.; Ryan Calong; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Fueling Solutions; Matt Domingo, Reynolds; Mark Falconi, Greenridge Naturals; Ramona Giderof, Diageo Beer; Adam Gryzbek, BIC Corp.; Kevin Kraft, Tropicana Brands; Jay Nelson, Excel Tire Gauge

LLC; Jordan Nicgorski, JUUL Labs; Nick Paich, TriggerPoint Media; Bria Troy, PepsiCo Inc.; Melissa Vonder Haar, iSEE Store Innovations LLC; Jason Zagaria, Primo Brands; Derek Zahajko, CAF Inc.; GENERAL COUNSEL: Doug Kantor, NACS STAFF LIAISON: Bob Hughes, NACS RETAIL BOARD REPRESENTATIVES: Tom Brennan, Casey’s; Scott Hartman, Rutter’s; Kevin Smartt, TXB PAST CHAIRS: Vito Maurici, McLane Co. Inc.; David Charles, Cash Depot; Kevin Farley, Farley Retail Advisors

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 POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2025 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

WARNING: This product contains nicotine. Nicotine is an addictive chemical.

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UP FRONT FROM THE EDITOR

New Year, New NACS S

Ben Nussbaum Editor-in-Chief, NACS Media

hortly after Henry Armour announced that he would step down as NACS CEO and president at the end of 2025, everyone on the NACS staff received a questionnaire. It was sent by the search committee tasked with finding a new leader for NACS. After a handful of questions, there was a space to fill in anything else you thought the search committee needed to know. Here’s what I wrote: “My hope is you can find someone as extraordinary as Henry.” Mission accomplished. Frank Gleeson has had a remarkable career as a retailer, advocate and foodservice executive. Like Henry, he’s the kind of guy who changes the energy in a room when he walks in. Like Henry, he’s incredibly smart and passionate about this industry.

There are two articles on Frank in this issue. Our Inside Washington column looks at his career as an industry advocate, while a feature, “Head in the Game,” takes a deeper look at his background and future plans. This issue also includes our annual trend story looking at what’s hot in 2026 and a dive into how small operators can make the most of their marketing dollar (or marketing sweat equity). Spring is a busy time at NACS. Interested in getting more from the association? Consider joining us at the NACS Convenience Summit Asia (March 10-12), the NACS Human Resources Forum (March 16-18) or our Day on the Hill (March 17-18) in Washington, D.C. Go to convenience.org/events to learn more.

Turn to page 38 to discover the life lessons Frank Gleeson (circled) learned from the full-contact sport of Gaelic football.

6 JANUARY 2026 convenience.org

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UP FRONT FACES OF THE INDUSTRY

‘The Disney World of Quick Serve’ J

ason Lord entered the convenience industry by a “happy accident.” He spent decades working in high-end restaurants in Boston and a farm-to-table catering company before the pandemic changed his career path. That’s when he joined Alltown Fresh, a fresh food convenience concept from Global Partners, as the corporate chef. He calls it “one of the best jobs in the world.” “The convenience store food space is really new, so it’s such a fun space to be in. And the hospitality aspect in c-stores is much different than working in a restaurant kitchen. … We’re kind of like the Disney World of quick serve,” he said. Jason spoke with NACS about: WHY HE LOVES WORKING IN THE CONVENIENCE INDUSTRY One of the most fun things about being at Alltown Fresh is just blowing people’s minds when they come into the store. We have guests who get gas and have never been inside, and then when they do, they’re like, ‘Wow, what’s going on in here?’ They’re blown away to see an open kitchen with cooks in chef coats making fresh food. I am really proud to be part of the industry’s foodservice growth and the focus on nutrition and better food at convenience stores. Many brands across the industry are pushing each other

8 JANUARY 2026 convenience.org

to be better, learning from each other and trying to raise that bar for cleaner ingredients, better ingredients and having a healthier spot to eat. I’m proud of the industry as a whole and that I get to be a part of it.

WHAT HE FINDS FULFILLING ABOUT HIS JOB In this industry, you build up regulars a lot easier, and you also have a much wider reach of people whom you’re influencing with your food. Similarly, I also love having reach with training

team members. We have 16 Alltown Fresh locations, and let’s say each has an average of about 10 people in the kitchen. I get to influence that many people’s behaviors. Not just food safety and so forth, but I’m really big on hospitality. I love teaching them hospitality, seeing them understand it, seeing them practice it and then smiling when they know they’re getting that interaction back from a guest. We’re changing the world day by day with that. ONE OF HIS FAVORITE MOMENTS AT WORK There are so many, but there was one in particular when we were making a sandwich for a woman with a child who was maybe around five or six years old, and there was something on the sandwich that the child didn’t like. The mom was talking to her daughter and said, ‘It’s okay, we’ll just take it off,’ but the kid was about to have a meltdown. I just said, ‘Why don’t I remake this for you.’ She was absolutely blown away that we would just make her a new sandwich. Now that’s a guest who’s going to come back all the time. HIS FAVORITE ALLTOWN FRESH MENU ITEM Our breakfast sandwiches are out of control.

UP FRONT NACS NEWS Varish Goyal, CEO of Loop Neighborhood Markets, has taken the stage at the past two Summits to deliver the topline operational and financial performance metrics for the year.

Stay One Step Ahead at the NACS State of the Industry Summit Registration is now open for the 2026 NACS State of the Industry (SOI) Summit, which will take place April 1416 in Schaumburg, Illinois, just outside of Chicago. The three-day event will dive into the latest financial, operational, categorical and regional market data and consumer trends in convenience, and bring you insights on how to use the data to your advantage and benchmark against your peers. You’ll hear about the latest industry defining trends and how to get ahead of them, and you’ll discover how to identify the changes in shopper behavior that impact merchandising, dayparts and product discovery. The data. The SOI Summit is the only convenience retail industry data event of its kind. NACS has been collecting and sharing convenience industry data, analysis and strategic insights for almost 10 JANUARY 2026 convenience.org

60 years. The SOI Summit provides the first look at the data months before the NACS State of the Industry Report® of 2025 Data is released, allowing you to benchmark against competitors regionally and nationally. Technology solutions. From artificial intelligence to data analytics, the Technology Solutions Center at the SOI Summit showcases approximately 20 companies that are focused on helping retailers find solutions to their business challenges. The center will be available to SOI Summit attendees during all networking breakfasts, lunches, session breaks and evening receptions. Contact Chris Wise at cwise@ convenience.org for more information. Networking. More than 600 convenience retailers, suppliers and industry stakeholders attend the NACS SOI Summit. The connections you make and

the relationships you build become your own personal sounding board for ideas, questions and expert advice. Delivered by your peers. The industry’s performance metrics will be delivered by convenience retailers who are immersed in c-store operations and leadership, providing important industry context to the data. Free stuff. By attending the SOI Summit, you will receive a free digital license to the NACS SOI Report of 2025 Data. If you submit your data by March 17, 2026, you will receive one free registration to the SOI Summit and two free digital licenses for the SOI Report. Registration is open now. Visit convenience.org/SOI to register.

Connecting People, Policy and Tech at the NACS HR Forum The 2026 NACS Human Resources Forum will take place March 16-18 in Louisville, Kentucky. The three-day event brings together HR leaders from the industry to exchange ideas and insights about top-of-mind issues for retailers, setting you up to stay on top of challenges throughout the year. This year’s agenda includes: • How to navigate compliance and legal issues, including those related to AI, ADA and disability compliance, and E-Verify/ICE readiness. • Workforce lessons from 2025 by NACS Research—this session will break down the latest macroeconomic labor trends, share fresh insights from the NACS 2025 Talent Insights Dashboard survey and highlight what these changes mean for the convenience industry. • Tactics to build authentic connections. • Positioning your benefits package as a competitive advantage. • Creating meaningful career development by leveraging AI for smarter learning, developing structured career pathways and reimagining store manager development with insights from hospitality and hotel training models.

• A case study on how Circle K is redefining employee engagement through gamified training. • An example of how structured internship programs and intentional college recruitment can help retailers create a strong, long-term talent pipeline. • How to harness personal and employee EQ. • How to build cohesive multigenerational teams. Plus, an interactive workshop will focus on applying AI to HR functions, and attendees can take advantage of dedicated networking sessions, breakout sessions to talk about key topic areas and evening receptions to connect with peers. To register, visit convenience.org/hrforum or email Brandi Mauro at bmauro@convenience.org for more information.

The NACS State of the Industry Talent Insights Dashboard of 2025 Data will release March 1. Participate in the survey and submit your data by February 13 to receive a complimentary license to the dashboard.

Emma/Adobe Stock

Calendar of Events 2026 FEBRUARY NACS Leadership Forum February 10-12 | Fontainebleau, Miami Miami, Florida

NACS Day on the Hill March 17-18 | Four Seasons Washington, D.C.

MARCH NACS Convenience Summit Asia March 10-12 | Shanghai, China

APRIL NACS Food Safety Forum April 13-14 | Renaissance Schaumburg Convention Center Hotel Schaumburg, Illinois

NACS Human Resources Forum March 16-18 | Galt House Hotel Louisville, Kentucky

NACS State of the Industry Summit April 14-16 | Renaissance Schaumburg Convention Center Hotel Schaumburg, Illinois OCTOBER NACS Show October 6-9 | Las Vegas Convention Center Las Vegas, Nevada

For a full listing of events and information, visit www.convenience.org/events.

NACS JANUARY 2026 11

UP FRONT NACS NEWS

Inspirational Ideas From the Industry Every summer, Jeff Lenard, vice president of NACS media & strategic communications, and Chrissy Blasinsky, digital and content strategist, travel around the country (and sometimes the world) to capture ideas from some of the most innovative and food-forward convenience stores in the industry. They’ve seen a hidden speakeasy, dog parks, iconic branding and marketing, high-level foodservice offers and other unique store features that serve as examples that the rest of the industry can aspire to emulate. Those stores are showcased in the NACS Ideas 2 Go video series and debut during a NACS Show General Session. Ideas 2 Go has highlighted hundreds of stores since it first aired at the 1994 NACS Show. This year’s 2025 videos featured: Parker’s Kitchen (Savannah, Georgia) Renowned for its great food, uniquely designed stores with high-quality details and operational excellence, Parker’s Kitchen is on a course to redefine foodservice and the future of convenience.

12 JANUARY 2026 convenience.org

Twice Daily and White Bison/Tri Star Energy LLC (Franklin, Tennessee) The company created its own upscale coffee brand, White Bison, that’s featured in many of its Twice Daily convenience stores as well as standalone locations.

36 Lyn Refuel Station (Minneapolis) The one-store 36 Lyn is located right in the heart of its diverse community. What better way to celebrate the unique relationship that 36 Lyn has with its customers than to hold a 20th anniversary party and invite the neighborhood?

Rutter’s (Milton, Pennsylvania) The 1747 Bar and Lounge, named after the company’s founding year, is a new premium entertainment experience in the convenience space. The 14,000-foot store concept is a one-of-a-kind destination, blending the energy of a sports bar with the ease and accessibility of a convenience store.

Japanese ‘Konbini’ (Tokyo, Japan) Japanese retailers have redefined how convenience meets efficiency. Stores, known as “konbini,” serve a convenience culture that is food focused with freshly prepared or packaged items that take food preparation to a level not seen in other countries.

Stinker Stores (Nampa, Idaho) The company leans into its Stinker brand and Polecat Pete mascot that ties into everything from culture (“Our Stinkin’ Values”) to store branding (Pete’s Eats).

Filling Co. (Ashburn, Virginia) “Gas & Grub” is the tagline for a small retailer that is known for high-quality prepared food. The menu includes everything from all-day breakfast to cheesesteaks and better-for-you options like açaí bowls with fresh fruit and toppings.

Farmer’s Grandson Eatery (Lakeville, Minnesota) This is more than a stop for a quick snack, drink, fillup or meal—it has a secret entrance to a high-end speakeasy with gourmet food and top-shelf beverages.

Check out the videos online at convenience.org/ideas2go. For more information about the series, and to be considered for Ideas 2 Go, contact Chrissy Blasinsky at cblasinsky@ convenience.org.

UP FRONT NACS NEWS

Member News RETAILERS

Arko Corp. announced that Jordan Mann, the company’s senior vice president of corporate strategy, capital markets and investor relations, has been appointed interim chief financial officer. He succeeds Robb Giammatteo. Mann brings more than a decade of experience in finance and capital markets to the role. Before joining Arko in 2023, he held senior positions in investment banking at Morgan Stanley, where he served as an executive director, and at Credit Suisse, where he was a director. EG America named Beth Turenne as vice president of brand management. Prior to this role, Turenne worked at Dunkin’, according to her LinkedIn, where she was Dunkin’s VP of brand marketing and category management. In that role, she helped create the chain’s menu strategy, curated food and beverage LTOs, developed advertising briefs for media partners and public relations agencies, and led strategic partnerships with franchisees. Jorge Valdes was appointed as the Pilot Company’s senior vice president of operations. Valdes initially joined Pilot in October 2023 as VP of operations excellence, according to his LinkedIn.

14 JANUARY 2026 convenience.org

SUPPLIERS Ruiz Food Products Inc. named Stephanie Wilkes as chair of the company’s board of directors. Wilkes was elected to the Ruiz Foods Board in 2021. Dan Antonelli, who was Ruiz Foods CEO from 2021 to 2024 and board executive chair the past two years, will continue to serve as a board member. The change was effective September 29, 2025. Rovertown announced Amanda Yaw joined the company as a customer success Amanda Yaw manager. Based in Las Vegas, where she previously served as marketing director for Green Valley Grocery, Yaw brings extensive experience in marketing strategy and design. NexChapter announced the addition of two new vice presidents to its leadership team: Matthew Stephenson and Ken Kaufmann. Stephenson will lead NexChapter’s entry into the training and talent development space, building a new practice area focused on leadership development, mentorship and change management. Before joining NexChapter, Stephenson

spent the last eight years leading teams across talent acquisition and learning and development at Casey’s. Kaufmann will lead NexChapter’s growing loyalty practice, partnering with retailers to build stronger, more profitable customer relationships through data-driven strategy and technology integration. He will guide clients through loyalty strategy, technology selection and personalization activation to deepen engagement and drive long-term customer value. Andy Bennett was named group president of convenience retail for Vontier Corporation, where he will unite its brands under single leadership to create a more seamless customer experience in the rapidly evolving convenience store market.

Keep NACS in the know— send your updates to news@convenience.org

UP FRONT NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in October 2025. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting convenience.org/create-login. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership. MAJOR OIL Sunoco LP Dallas, TX

RETAILERS Bano Enterprises Johns Creek, GA Breaux Petroleum Products Inc. Lockport, LA www.breauxpetroleum.com Capt’n Joe’s Valdez, AK Cyclum Renewables LLC Cornelius, NC www.gocyclum.net

Oregon State U dba Cascadia Market www.food.oregonstate.edu/ cascadia-market Palmer Park Services Inc. Hyattsville, MD Panther’s Quick Mart LLC Miami, FL www.panthersquickmart.com Perdun Enterprise Inc. Roseville, CA Rudy’s Corporate Dining Pontiac, MI S3 Investments LLC Santa Clara, CA

Energy Petroleum and Marketing Saint Louis, MO

Siddique Enterprises Indianapolis, IN www.sewholesale.com

Fuel Depo Corner Mart Southlake, TX

Speedy’s Convenience Stores Henrietta, NY

Gwen’s Blends Alexandria, VA www.gwensflavorblends.com Hanuman Business Inc. dba Ramoco Fuels Princeton, NJ Jack’s Enterprises Inc. Liberty, KY Kabani Holding Company Inc. Pearland, TX Lakeshore Petroleum Inc. Watervliet, MI Laxmi Food Mart Inc. Walkertown, NC M & H Investments Mobaligh LLC Reno, NV www.sandowholesale.com

16 JANUARY 2026 convenience.org

TripStop Inc. Roanoke, VA Walkers Point Plaza LLC Milwaukee, WI Yousef Yaqoub Inc. Oxford, AL

SUPPLIERS Alpina MFG Chicago, IL Ambition Power Brands Mississauga, Ontario, Canada www.mineewipes.com ASAD Wholesale Cincinnati, OH ASAP Event Advertising Cincinnati, OH www.asapevents.com

Austin Wholesale Supply Austin, TX Axon Scottsdale, AZ BakeCorp Austin, TX www.bake-corp.com Balchem Maryland Heights, MO Basemakers Bend, OR Bay Cities Pico Rivera, CA BETT Botanicals Irvine, CA www.bettbotanicals.com Blindtiger Design Seattle, WA www.blindtigerdesign.com Bumble Bee Seafoods San Diego, CA www.bumblebee.com C. Howard Company Inc. Bellport, NY www.chowardcompany.com California Beverages Inc. Upland, CA www.californiabeverages.com California Milk Advisory Board Tracy, CA www.realcaliforniamilk.com Carolina Ice Company Kinston, NC ChargeWonder Los Angeles, CA www.chargewonder.com

Charlotte’s Web Stanley Brothers Boulder, CO www.charlottesweb.com Cheech and Chong Global Murray, UT Climbing Kites Salida, CO Convotherm USA Cleveland, OH www.convotherm.com CPG Distribution Inc. Commerce, CA www.cpgdistributor.com Creative Werks LLC Elk Grove Village, IL www.creative-werks.com Crumbs Bakeshop New York, NY Dairy Farmers of America Dallas, TX DazPak Flexible Packaging Columbus, OH DDS/Cisaplast USA Elkton, KY www.ddsglassdoors.com Delizza Patisserie Battleboro, NC www.poppies.com Delta Beverages Charlotte, NC Desi Cooler Chattanooga, TN DFW Fixture Euless, TX www.dfwfixture.com Dr Natural LLC North Brunswick, NJ

UP FRONT NACS NEWS

Eagle Eye Toronto, Ontario, Canada Elias Wholesale Distributor LLC Allentown, PA www.eliaswholesale.com Eloma, an ALI Group Company Vernon Hills, IL www.elomausa.com Envac North America Newark, DE www.envacgroup.com/us ePac Flexible Packaging Del Mar, CA

iNutrition USA Corp Las Vegas, NV www.sinfitnutrition.com

Mid-States Specialty Eggs Smithton, MO www.msseggs.com

Sunii Energy Vancouver, British Columbia, Canada

IYKYK Beverages Boca Raton, FL

Parker Food Group Fort Worth, TX www.parkerfoodgroup.com

SUNMI Technology US Inc. Alpharetta, GA

Jim Group Inc. Hialeah, FL www.jim-food.com Johnson Controls Inc. Milwaukee, WI www.johnsoncontrols.com Juneshine Brands San Diego, CA www.juneshine.com

Flooid Blue Ash, OH www.flooid.com

Koala Kare (Division of Bobrick) Centennial, CO www.koalabear.com

Fortune Worldwide Distribution Longwood, FL

KoolMore Brooklyn, NY www.koolmore.com

Freedom Transactions Wilmington, DE

Kysor Warren Epta US Columbus, GA www.kysorwarren.com/en

Frontier Food Group Fayetteville, AR GuruNanda Buena Park, CA Happy Global Inc. Richardson, TX www.happyglobalinc.com Hidden Hills Club Las Vegas, NV www.hiddenhills.club Hi-Way Distributing Coventry Township, OH Honey Smoked Fish Holdings Denver, CO

LBC Products Inc. Las Vegas, NV www.thehustlercollection.com LoDo Brands Chicago, IL www.drinklodo.com Lone Star Bakery China Grove, TX www.lonestarbakery.com Mad Tasty Newport Beach, CA www.madtasty.com Madbrook Donut Factory Mars Air Systems

Indiana Carton Company Inc. Bremen, IN www.indianacarton.com

MartinBauer Inc. Secaucus, NJ www.martin-bauer-group. com/en

Instacart

Mid-America Store Fixtures Obetz, OH www.midasf.com

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Pilaz Energy Los Angeles, CA www.pilazenergy.com Pretzilla Franklin, WI www.pretzilla.com

Synergy Flavors Wauconda, IL www.synergytaste.com Tabanero Holdings Delray Beach, FL www.tabanero.com

PulseOn Richardson, TX

Tank and Line LLC Wood Dale, IL www.tankandline.com

Rimaray Inc. Pelham, NH

Tellus Power Group Irvine, CA

Rito Mints Trois-Rivieres, Quebec, Canada www.ritomints.com

The Happy Can Urbandale, IA www.buythehappycan.com

Rotten Inc. Santa Monica, CA www.eatrotten.com RYTHM Inc. Chicago, IL Scosche Industries Oxnard, CA Sedona Bottling (Purely Sedona) Phoenix, AZ www.purelysedona.com Skillz Media Eden Prairie, MN www.skillzmedia.com SmartWorks Consumer Products Somerset, NJ Sprout Retail Somerville, NJ www.sproutretail.com Stryve Foods LLC dba Stryve Biltong Plano, TX www.stryvefoods.com

The Jel Sert Company West Chicago, IL www.jelsert.com Toast Boston, MA Tulip International Inc. Seoul, Sout Korea www.tulipint.com Valued Naturals Randolph, NJ Van Drunen Farms Momence, IL Venture Sales Opelousas, LA Videri Grand Haven, MI Visual Art USA Inc. Chicago, IL www.visualart.com Wellness Natural Inc. Toronto, Ontario, Canada www.simplyprotein.com White Rabbit Energy Corona, CA www.whiterabbitenergy.com

CONVENIENCE CARES

Twice Daily Donates $450,000 to Children’s Hospital The donation was presented at the company’s 25th annual Golf Cup.

ashville, Tennessee-based Twice Daily, operated by Tri Star Energy, donated $450,000 to Monroe Carell Jr. Children’s Hospital at Vanderbilt during Twice Daily’s 25th annual Golf Cup. “This donation will continue the mission to champion health care for children and advance Monroe Carell’s mission,” Twice Daily said. Hosted at Hermitage Golf Course, the Twice Daily Golf Cup brought together vendor partners for a day of golfing to support the cause. Following the event, Twice Daily hosted an award ceremony and reception alongside Monroe Carell’s leadership and three child ambassadors. Steve Perry, Tri Star Energy’s chief of operations and a member of the Monroe Carell Advisory Board, continues to lead the company’s longstanding fundraising efforts for the hospital’s patients and families. Tri Star Energy was the first corporate partner of Monroe Carell’s Growing to New Heights Campaign, an expansion campaign that enables the hospital to care for even more children who need it. “Tri Star Energy and Twice Daily are deeply committed to supporting Monroe Carell Jr. Children’s Hospital at Vanderbilt and its patients, and we’re humbled to host events like the Twice Daily Cup to reach new milestones that directly impact our local community and our children,” Perry said. “This is the 25th year we’ve hosted the golf tournament, and each year, I am inspired by how everyone comes together for such a meaningful cause.” 20 JANUARY 2026 convenience.org

In The Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories. Learn more at www.conveniencecares.org.

1 CASEY’S PARTNERS WITH LOCAL 4-H

3 ALLTOWN FRESH HOSTS COFFEE WITH A COP DAY

Casey’s partnered with 4-H and invited customers to support local 4-H programs by rounding up their purchase. The company also matched donations up to $150,000. Casey’s said this partnership directly benefits programs that help youth develop skills that build confidence and prepare them to be future leaders. In addition, Casey’s is expanding its 4-H youth engagement by doubling the number of local events. Members from eight 4-H chapters will visit their local Casey’s to participate in an interactive curriculum focusing on retail careers. This program offers mentorship, hands-on learning and real-world experience.

Alltown Fresh celebrated National Coffee with a Cop Day for the third year in a row across all of its locations in the Northeast, as well as at its sister store, Honey Farms Market. The day of recognition is held annually on the first Wednesday of October and brings together community members and law enforcement in stores. On Wednesday, October 1, 2025, more than 120 officers from local police departments, 192 community members and seven comfort dogs attended the gatherings, increasing overall participation from 2024.

2 PARKER’S KITCHEN

DONATES $530,000 TO SCHOOLS Parker’s Kitchen held its 13th Annual Fueling the Community Charity Golf Tournament at The Landings in Savannah, Georgia, raising a record $530,000 to support local schools in the communities the company serves throughout Georgia and South Carolina. Parker’s Kitchen said 288 golfers teed off on the Magnolia and Marshwood championship courses at The Landings for the sold-out scramble-format tournament. Parker’s Kitchen beat its goal to raise $450,000 to support education, eclipsing last year’s record fundraising total of $400,000.

4 YESWAY RAISES OVER $600,000 During its Fifth Annual Golf & Clays Classic Charitable Fundraising Tournament, Yesway raised more than $630,000 to support nonprofit organizations that make a difference in the communities where Yesway operates. This year’s proceeds will benefit Operation Homefront, a national nonprofit serving military families, as well as several local charities, civic organizations and first responders across the company’s operating areas.

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5 WEIGEL’S DONATES TO SMOKY MOUNTAIN SERVICE DOGS Weigel’s announced that it made a donation of $40,000 to Smoky Mountain Service Dogs (SMSD), continuing its annual commitment to support local charities that make a lasting difference in east Tennessee. This year’s contribution was joined by a generous $10,000 donation from Weigel’s partner REDCON1, bringing the total impact to $50,000. “Smoky Mountain Service Dogs represents the best of what it means to serve,” said Doug Yawberry, CEO and president of Weigel’s. “They transform the lives of Veterans and First Responders with compassion, dedication and heart.” 6 7-ELEVEN PARTNERS WITH CHILDREN’S MIRACLE NETWORK HOSPITALS 7-Eleven Inc. announced the launch of an in-store fundraising campaign at participating 7-Eleven, Speedway and Stripes stores with donations supporting Children’s Miracle Network Hospitals. “Every donation at the register makes a direct impact in our customers’ community, with all funds going to their local children’s hospital,” said Marissa Jarratt, executive vice president and chief marketing and sustainability officer for 7-Eleven Inc. 6

INSIDE WASHINGTON

A Seat at the Table Frank Gleeson, the new president and CEO of NACS, is an experienced advocate for the industry.

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BY JON TAETS

ne of NACS’ missions is to be the voice for the industry in Washington, D.C. With direction from the NACS legislative committee, which is comprised of top leaders in the industry, the NACS government relations team is on the front lines—every single day—making sure our industry gets the consideration it deserves from lawmakers and officials. Frank Gleeson, the new president and CEO of NACS, comes to the job with not only a depth of knowledge about global convenience and deep experience with NACS, but also an exceptional track record as an industry advocate in his home country of Ireland. “I’m passionate about advocacy. You’ve got to protect your industry. You’ve got to have a voice for your industry and you’ve got to get a coalition of people who have likeminded problems and issues together,” he said. His role as an advocate kicked into high gear well over a decade ago, when Ireland was considering stringent restrictions on tobacco sales. Gleeson was leading the former Statoil company and was prominently involved with Retail Ireland at the time. While the coalition was ultimately unsuccessful in blocking the restrictions, it was successful in delaying them and limiting their impact. “That was one of my first experiences with advocating on behalf of the industry, and I saw that we were able to make a difference.”

I’m passionate about advocacy. You’ve got to protect your industry.

Among many other past roles, Frank Gleeson was president of Ibec, Ireland's leading business association.

Gleeson soon stepped onto an even bigger stage as a board member with the Irish Business and Employers Confederation (Ibec). Ibec is a confederation of dozens of business associations spanning nearly every aspect of the Irish economy. After almost 20 years working with the group, he served as president of Ibec in 20212022, making him a leading voice for business in Ireland. As the “retail guy around the table,” Gleeson met regularly with the Irish Finance Minister, with whom he

developed a great rapport, and other senior government officials, building relationships that would bear fruit for his industry and employees. When Covid hit in 2020 and the Irish government shut down much of the retail sector, Gleeson was concerned about making payroll for the people he was responsible for, who were all at risk of losing their paychecks while forced to stay home. Ultimately, he helped broker a deal over the course of a weekend whereby the government partnered with private employers to

ensure that their employees continued to receive pay. “Being around that table, to effect that change or to influence government policy or decisions—that’s the proudest moment of my career,” Gleeson said. Pivoting to his new role, Gleeson is well-versed in the issues of importance to retailers in the United States and has plenty of experience working with Members of Congress and the executive branch. “I’ve been talking about government relations with folks at NACS for over 20

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years. During that time, our industry has been thriving due in part to the NACS government relations efforts and our industry’s involvement in advocacy. Is it ever finished? Absolutely not. We need to continue to create the environment for our businesses to thrive,” he said. He highlighted the ongoing fight to enact the Credit Card Competition Act in Congress. “[The current swipe fees] aren’t fair or reasonable and don’t reflect the cost and risk for the banks and processors,” he said. On this particular issue, Gleeson is exceptionally well-suited to be an advocate as he can discuss how swipe fees are much lower in Europe. Gleeson saw his predecessor Henry Armour, former NACS president and CEO, spearhead the fight against swipe fees during his 20 years at the helm of the association, with notable success bringing down debit card fees. “Henry taught me that advocacy is a long game. You don’t often get results in short order. Building a rapport and making a personal connection is extremely important, and you have to

You don’t have to be an expert in government policy to get involved—you are already an expert on your business. 24 JANUARY 2026 convenience.org

be determined, committed and stay the course. This is a must-win topic and we can’t give up on it. We will continue to fight to bring fairness to businesses. I believe it’s a fight we can win.” Gleeson is a big believer in strength in numbers. He noted how impactful it can be when retailers take time from their schedules and visit Washington, D.C., to speak directly to legislators and staff—like during NACS’ annual Day on the Hill event or through other grassroots efforts organized by the NACS government relations team. “You have to have a seat at the table, and you have to be willing to step up and represent your business,” he said. “Politicians don’t know what they don’t know, which is why advocacy and using your experience to influence policy decisions is so crucial to business.” Advocacy is about education and influence, he said. “Every time you meet someone, you have the chance to influence them about something positive—whether a politician or a government official—and if you can present your perspective, you have a chance to make a real difference.” “When you get asked to step up to the plate, you don’t have to speak, you just have to support. It could be financially, it could be by sending a letter, it could be signing or helping collect signatures for a petition,” he said. These efforts all have a real impact on federal policy when members of the industry come together to support important topics. “You don’t have to be an expert in government policy to get involved— you are already an expert on your business,” he added. Advocacy isn’t just about giving voice to your cause, he said, it’s also about building relationships. “It’s a two-way street.”

He advised retailers to make themselves a known resource to elected officials at all levels. Building those relationships early on will pay dividends down the line. “Politicians are always thinking about local issues and what impacts their constituents back home. Those issues really matter to them no matter what level of government they’re in, so bridging that gap to advocate locally is very important.” Join Gleeson at the upcoming NACS Day on the Hill, March 17-18. Visit convenience.org/dayonthehill for more information. Jon Taets is a NACS director of government relations. He can be reached at jtaets@ convenience.org.

LanaSham/Adobe Stock

INSIDE WASHINGTON

INSIDE WASHINGTON NACSPAC LIST

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 in November 2025 are: Alex Baloga Pennsylvania Food Merchants Association

D. Brian Griffith Golden Pantry Food Stores Inc.

Dave Charles Sr. Cash Depot

Ji Ho NACS

Gary Dake Stewart’s Shops

Chris Hobson Core-Mark International

Barry Eveland Rocket Oil Company

Tommy Hunt E-Z Stop Food Marts Inc.

Erin Graziosi Robinson Oil Corporation

Bill Kent The Kent Companies dba Kent Kwik Convenience Stores Jeff Lenard NACS Nick Marino CORD Financial Services LLC Trevor Moyle Moyle Petroleum Company

Ramesh Patel SAASOA Steve Spinks The Spinx Company Inc. Nick St. Romain St. Romain Oil Company LLC Darlene Stanley Johnson Junction Inc. Marc Strauch Cameron Park Petroleum

Memberships expire December 31st Keep your access, insights and advantages.

Renew Today! convenience.org/renew

26 JANUARY 2026 convenience.org

28 JANUARY 2026 convenience.org

What WilL

Power

ConVeniEnCe in tHe YeAr AheAd?

New products and tech developments are redefining experience-driven retail. Plus, Labubu. BY NACS STAFF

erhaps the most overarching trend in convenience, and one that came through loud and clear at the 2025 NACS Show, is the need to be everything to everybody … while also differentiating your store to stand out from the crowd. “C-stores aren’t just c-stores anymore. Everyone’s leaning into foodservice, partnerships and new formats,” said Tiffany Fraley, CEO of InConvenience Inc. (dba The Goods Spot). “The operators who stand out are the ones who do it in a way that feels true to them. Not trying to copy a QSR or grocery model but creating experiences that match their brand and their community,” she said. “That’s something we think about constantly: how to grow without losing the personality that makes us different.”

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Industry consultant Peter Rasmussen, founder and CEO of Convenience and Energy Advisors, put it in the context of what he calls “The Labubu Moment.” “It was striking how few retailers [at the NACS Show] recognized the Labubu phenomenon—a cultural signal of where youth, pop culture and emotional connection are colliding,” he said. “It’s a reminder that staying relevant isn’t just about products or formats; it’s about tapping into what people care about now. … It speaks to the broader challenge of keeping pace with cultural momentum.” If you’re part of the group that is in the dark about Labubus, the collectible figures are part cute, part mischievous. Mark Wohltmann, the director of NACS global, spoke about Labubus in his Education Session at the 2025 NACS Show. “If you don’t know what Labubus are, you’re probably missing out on a lot of other trends. … Adults are buying these en masse, these tiny little fluffy furry things. They wear them on their belts, their bags, everything. … David Beckham, Marc Jacobs, look across Hollywood, look across the NFL. They’ve all been spotted with a Labubu.” While most retailers aren’t licensed to sell these dolls, they are able to sell accessories. “Walmart has a full shelf. That is cheap stuff with a big profit margin.” The bad news: “The hype is done,” Wohltmann said. “But you need to know what is next.” With “what is next” in mind, here are some things to keep an eye on for the rest of 2026.

is necessary to reverse a continued negative trend in store traffic. In a midyear update of NACS’ State of the Industry data, Chris Rapanick, managing director of NACS research, said inside transactions were down 1.9% year over year for the first half of the year. While average basket value grew 3.2%, NACS’ breakeven pool margin calculation was up 1.83 cents per gallon, meaning the average retailer needed to make more money at the fuel pump to remain in the black. While foodservice sales continue to grow, the rate of growth has slowed from around 7% the past few years to 2.1% during that same six-month window. Unit sales are in decline for most categories, as well. In all, total store transactions were down 1.5% in the first half of the year. “Total sales are down because fuel sales are down,” Rapanick said. “You guys aren’t doing anything wrong. That volume for fuel is growing, but … it’s difficult to grow fuel [dollar] sales when your price goes down 8%.” So, what are ways to drive traffic? That’s an urgent question in the year ahead.

IT BEGINS WITH FOOD

DISSECTING DIETS

Describing the evolution of convenience stores as a move “from gas to gourmet,” a recent NielsenIQ (NIQ) report says c-stores are becoming essential destinations for meal occasions, on-the-go wellness and even social gatherings. “This transformation reflects a deeper shift in consumer behavior: Shoppers now prioritize access, immediacy and experience more than ever,” NIQ said. “For CPG brands, this isn’t just a retail channel to monitor. It is a space where innovation, speed to shelf and cultural relevance converge. This is the moment to reimagine what convenience retail can do for your growth strategy.” That’s a heady mandate for convenience retailers and their suppliers, but this evolution

GLP-1 medications are presenting their own challenges and opportunities to foodservice, snack sales and store traffic. While the trendy weightloss solutions—used by an estimated 12% of adults in the United States—may make consumers eat less, they’re not making customers spend less at convenience stores. “GLP-1 is not a killer of convenience. In fact, I would argue that convenience is a big friend to GLP-1 consumers,” said Sally Lyons Wyatt, global executive vice president and chief advisor of consumer goods and foodservice insights at Circana. “When you look at the categories that have gained positive shifts in convenience among

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“If you don’t know what Labubus are, you’re probably missing out on a lot of other trends.”

“Total sales are down because fuel sales are down. You guys aren’t doing anything wrong.”

these customers, it screams that the portion control convenience offers by having single-serve sizes works.” The convenience channel has seen flat spending among both GLP-1 and non GLP-1 users, according to Circana, while other food and retail channels have seen declines. GLP-1 users are often Gen Z, higher income and have children present in the home, according to Lyons Wyatt. Finding meals that fit the whole family’s needs is critical, and convenience stores that offer something for everyone with different food options, smaller portions or singleserve items will attract these consumers, she said.

GLP-1 usage has benefited c-stores already, she added. According to Circana research, consumers taking GLP-1 medications over-index on foodservice and packaged (CPG) food and beverage compared to non GLP-1 consumers. “They’re shifting more dollars to foodservice [and less to grocery], … and categories including deli and prepared meat, snack bars, yogurt, fruit and hydration have seen a positive shift,” she said. “A lot of this is about portion control and getting the amount of food that you want.” Rasmussen of Convenience and Energy Advisors said the influence of GLP-1s extends well beyond the store shelf. “The rise of the GLP-1 customer—more health-conscious, selective and focused on balance—is changing the role of convenience stores,” he said. “This shopper is reshaping

Product Innovation Trends “Flavor is the heartbeat of innovation. It’s one of those things that you definitely need to be paying attention to and focusing on.” Philip Santini, senior director of foodservice and bar strategy for Rutter’s, said this at the 2025 NACS Show about foodservice menu development, but he could have been talking about innovation in any number of packaged categories, from snacks and candy to pouches and beverages. “2025 is the peak of innovation I’ve seen across the snack and candy category,” said Anna Kjerrumgaard, director of category management, center store, for RaceTrac. Here are some of the flavor and functionality trends that stood out on the Expo floor. Cinnamon. From numerous churro-flavored products—including chips, sunflower seeds, classic desserts and candies—to cinnamon-sugar smoked barbecue snacks, the flavor was everywhere. Prime examples: Twix Snickerdoodle and Butterfinger French Toast. Spicy and sweet. “The number one thing consumers are telling us they want is more spice,” said Sandie Deas, vice president, foodservice sales and marketing at Ruiz Foods. Prime examples: Van Holten’s Warheads Extreme Sour and Tapatio Salsa Picante Pickle in a Pouch.

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Nostalgic flavors. Think taco-, chili- or burgerflavored chips, ramen snack mix, rocket pop sparkling water, and blueberry-donut-flavored pretzels. Prime examples: C4’s Jolly Rancher flavors and Coca-Cola’s new Cherry Float. Protein. People are consuming more protein than ever before, with 61% increasing their protein intake in 2024, up from 48% in 2019, according to Cargill. CPGs have responded with line extensions to familiar brands, especially in beverages. Prime examples: The 2021 rollout of Gatorade Zero with Protein and the new Bucked Up Energy Drink’s new proteinpacked line. Energy. On the NACS Show floor, caffeine could be found in packaged beverages, energy gum, protein bars and especially energy pouches. Prime examples: Mojo (with 50 mg of caffeine per pouch), Grinds (80 mg) and Wip (100 or 200 mg). Brand mashups. Why present one strong consumer brand when you can offer two? The success of mashups like the recent Reese’s Oreo Cup and the reciprocal Oreo Reese’s Cookie from Hershey and Mondelez never fails to send R&D into overdrive. Prime example: Johnsonville’s Dr Pepper-enhanced rollergrill sausage.

assortments, portion sizes and even trip missions. Retailers who understand that betterfor-you doesn’t mean less convenient will be best positioned to capture this wave.” Other specific categories are also seeing interest from GLP-1 users, including frozen novelties, pastries and donuts in single-serve quantities. These allow consumers to “just buy one” item to satisfy a craving without investing in a full box of one dozen from other channels. Additionally, hydration is key for these consumers, meaning water and sports drinks are categories with momentum. “GLP-1 consumers drink more beverages in total and also prefer sugar-free alternatives, so diet carbonated beverages have been popular among this group,” said Lyons Wyatt.

“AI is a power drill compared to a screwdriver. It’s more accurate. It saves time. It’s faster.”

MAY THE TECH BE WITH YOU Forget any and all preconceived notions about artificial intelligence. The c-store industry should think of it with a “yes, and” mindset. Can AI drive traffic via online search? Yes, and it can parse your sales data to drive a store reset. Can AI generate apps just by asking? Yes, and it can identify the personas of the consumers using your apps, further defining how best to personalize offers to them. Can AI verify deliveries by matching products received to those listed on invoices? Yes, and it can forecast fuel volumes for a given week taking into consideration local events and weather patterns. It can create a shopper heat map, aid with employee scheduling and develop sales reports directing a store manager to delay a new

order based on what’s in the back room. Fidaa Mohrez, senior director of operational systems for H&S Energy Group, is testing a variety of AI tools to help forecast proper order sizes and act as a double-check to match deliveries with invoices. “AI will match the delivery with the invoice,” he said. “I’m testing it now. It’s going to solve a huge problem with electronic data interchange” and making sure the numbers align. Such tests are worth the effort, he said, if you have the right process and checks and balances in place. “Then you know you have the right products in the store and on the shelves,” he said. The true benefit is the time and brainpower AI can save, said Babir Sultan, president of Fav Trip. “AI is a power drill compared to a screwdriver,” he said. Sultan uses AI in labor scheduling, store security, product placement, development of promotions, analysis of the results and more. “It’s more accurate. It saves time. It’s faster,” he said. That’s the kind of innovation that Fraley of InConvenience Inc. is eager to embrace. “I’m drawn to the tech that actually makes life easier for our teams,” she said, “whether that’s simplifying back-office processes, tightening communication or helping DMs see what’s really happening in the stores. It’s the kind of technology that empowers people to do their jobs better, not just automates them away.” But don’t expect AI developments to roll out in a predictable and smooth stream. It’s going to come fast and change timelines, for better and for worse. AI also has the potential to transform all aspects of c-store technology. Even as Conexxus, the industry’s technology standards group, unfolded its roadmap to the technological and cultural shifts that will shape the retail landscape through 2035, it also admitted the helping hand of artificial intelligence is likely to render the timeline obsolete sooner rather than later. AI “will change our goals, our timeframes and more,” said Gray Taylor, executive director of Conexxus, during the NACS Education Session titled “The NACS/ Conexxus Technology Roadmap.” Another tech trend expected to continue evolving in 2026 is increased connectivity.

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Andy Bennett, group president of convenience retail at Vontier Corporation, noted that connecting different devices “opens up many opportunities for retailers.” From an asset management point of view, whether it’s the pump, tank gauge, EV charger or something inside the store that’s not working, having it connected in one retail management system helps keep an operator informed and able to instantly manage the devices. “At Vontier, we’re trying to create a fabric of connected assets so that we can manage uptime in a better way,” said Bennett.

EV CHARGING REPORT CARD Another technology that can’t be ignored: the electric vehicle. John Eichberger, director of the Transportation Energy Institute, said a lot of people seem to be dismissing EVs given the change in administration and some pullbacks from automakers. While fuels will still be dominant for decades to come, he said, charging is not going away. “This is a nascent industry,” Eichberger said. “You’re going to have ups and downs, and we’re seeing that right now. But the auto industry is going to be able to pivot, and they’re going to be delivering vehicles that customers want to buy. Through August this year, we sold more EVs in the United States than we sold all last year. So, it is not going away.” In fact, James Cater, senior director, innovation and sustainability strategy at retailer Global Partners, said current conditions give retailers more time to study their stores’ needs before investing in EV charging. “This is a long journey. [Liquid] fuel is going to be here for a long time; electrification is going to be here for a long time,” he said. “So, you have the opportunity to really think about this and decide what it is you want to do as an owner and an operator at your sites and do it right.” When considering charger installation, sometimes the most powerful or expensive option is not the best choice for a location. Instead, it’s important for retailers to match the charger power at the location to the typical customer dwell time, according to Matthew Bartolone, head of public charging, sales & strategy with ABB E-mobility, a leader in electric mobility.

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“If people are going to be there for 30, 40 minutes, they don’t want to be accumulating idle charges with a fast charger. They don’t want to interrupt what they are doing to go disconnect their vehicle,” he said. “Some of our partners are developing hybrid sites to meet those differing needs.” In another note of caution, Kevin Randolph, manager, commercial sales for the charging network Electrify America, said not all locations need to embrace charging at all. “Be wary of anyone who tells you that you’d be able to build anywhere and find success, because that’s just simply not the case,” he said. “Understand that aside from checking off all the boxes for the site itself, are you thinking about the geography and the consumer patterns in that area? EV adoption is continuing to grow, but it’s still not everywhere.” In total, Rasmussen said the innovations coming to the convenience industry now are as much about creating experiencedriven retail as simply selling more products. “The conversation around ‘experience’ has evolved. It’s no longer just about design or traditional ambiance,” he said. “It’s about personalization through technology. The leaders are blending digital insights with physical design to create what feels like ‘my store,’ not just a good store. That shift from universal experience design to individualized engagement is where the energy is heading. This compounds into products where retailers who win are not just a vessel that delivers common essentials, but surprises and delights with unique product differentiators.”

“The leaders are blending digital insights with physical design to create what feels like ‘my store.’”

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Head GAME in the

NACS President and CEO Frank Gleeson talks leadership and what’s next for the industry. BY LAUREN SHANESY

he convenience industry knows Frank Gleeson for numerous roles over his decades-long career. Among them: president and CEO of Aramark Northern Europe, 2018-2019 NACS chairman of the board and executive positions at Topaz Energy Group and Statoil Ireland. His latest leadership role—made official on January 1, 2026—is president and CEO of NACS. A role he’s less well known for? A Gaelic football player in Ireland, where he’s from. If you ask Gleeson, he was never the best player on his team or the most talented. “But I was absolutely the most committed,” he said. “I was just the most competitive person you ever met. I wanted people to say, ‘Frank never gives up. He shows up early and stays late. Down to the last kick of the game, he’s still competing even if we are losing.’” As only the fourth CEO in NACS’ 64-year history, Gleeson is now our team captain. “After 30-plus years in a business I’m so passionate about, it’s like winning the lottery for me to lead NACS and have this position in an industry that I have been part of for so long,” he said. “We are already very well placed

NACS JANUARY 2026 39

Gleeson (second from left) said he learned three key things from his Gaelic football days: “First is teamwork. You don’t win anything unless you play as a team. That was a huge life lesson for me when I was around 17 and 18 years of age. Second is competitiveness—winning and losing and learning about the ups and downs of sports and life at the same time. Lastly, I made lifelong friends from those teams and still talk to some of those guys today. Building those relationships was so important in my life.”

to navigate the challenges and take advantage of the opportunities for more market share. I’m optimistic our stores and the industry as a whole will become even harder to compete against.”

ON THE FRONTLINES Gaelic football is the number one sport in Ireland. It’s a hybrid of soccer, rugby and basketball. “It’s a contact sport with no pads,” said Gleeson. He started playing at age 12 and continued until he was 35, rising through the ranks. A highlight was being selected to play for a team that represented Ireland in a series of games played in Australia. He played fullback earlier in his career before moving up the field into the forward position. “I’d say I’ve broken every bone in my fingers over the years. As a defender, I put my hands, face and everything on the line to stop somebody from scoring.”

Fittingly, Gleeson’s off-the-field career in retail started on the frontlines of his family’s restaurant business. “I was serving customers tea and coffee in the restaurant or washing dishes in the kitchen,” he said. “It gave me an appreciation for the importance of challenging work and customer loyalty.” One of Gleeson’s mottos is: “If you’re not serving a customer directly, you’re serving someone who is serving a customer.” He believes that the best leaders, especially those in the retail business, must have a hospitality mindset. “If we treat our people well, they will in turn deliver for customers—that’s really where the moment of truth happens and where loyalty is built,” he said. “Leaders exist to support their people and create the culture and environment for success. The culture of an organization is defined at the frontline, and leaders must never lose sight of that.”

COACHING AND LEADERSHIP

As a defender, I would put my hands, face and everything on the line to stop somebody from scoring.

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One of the highlights of Gleeson’s football career wasn’t as a player—it was coaching his sons when they started playing the sport. “It’s hard to beat the feeling of playing in a big game. When the national anthem is played in the stadium and you are out on the field and then you win, the whole thing is just brilliant. But my kids following in my footsteps … that would rival it. We won the all-Dublin under-14 competition and went on into the all-Ireland series getting to the final in

NACS JANUARY 2026 41

After 30-plus years in a business I’m so passionate about, it’s like winning the lottery for me to lead NACS and have this position in an industry that I have been part of for so long.

Leinster, and that win was probably even better for me than my son who played in the game, because I was the coach while he was playing. With coaching, you’re not playing yourself but you’re giving back all the things you’ve learned.” Gleeson has always had a coaching mentality, but even after years of job experience he had a “profound change” when he attended the NACS Executive Leadership Program at Cornell University. “I was a very strong manager with great technical ability, but the course at Cornell turned me into a real leader of people and a strategist,” he said. “The key difference between management and leadership is people. Management skills are tactical, but leadership requires empathy, listening and the ability to bring the best out of others. As my career progressed, I learned that success comes less from giving direction and more from creating the conditions for others to succeed and be their best selves.” In his teams, he looks for those who are willing and able: “Attitude is number one—when someone is willing, you can teach them a lot if they want to learn and develop themselves. They also must have a certain level of ability, capability or potential to do the job.”

CALM IN A CRISIS Save for broken thumbs and a few knee injuries, “the sort of stuff you’d expect,” Gleeson said he remained free of serious injuries during his football career. The companies he has led over the years, meanwhile, have faced more substantial challenges, from the financial crisis to Covid. Gleeson is no stranger to leading through tough times. He was at the helm of Topaz in 2008 when the markets crashed. “I remember it quite distinctly—they crashed hard in Ireland. The banks were bankrupt and Europe had to come in and bail us out. We had no liquidity and were heavily leveraged with business loans,” he recalled. Ireland imports all of its fuel. In July of that year, when his end-of-month sales tax bill came due at the same time as a payment for a fuel shipment from Norway, Gleeson found himself at an impasse. “I think we estimated we had about ten days’ worth of fuel left in the country, so if we didn’t pay for that shipment—in cash, because there was no credit available due to the banking crisis—we would run out. We didn’t have

Cheers to Frank Gleeson! Cheers to Frank Gleeson! Congratulations as Congratulations as the NACSnew new the NACS President CEO President &&CEO

Welook lookforward forwardtoto We Drinkingin inthe thePossibilities Possibilities Drinking together togetheracross acrossthe the Convenience ConvenienceRetail Retailindustry industry in in the themany manycoming comingyears. years.

From your friends at

NACS JANUARY 2026 43

the credit, so I had to ring up the finance minister. I asked if we could delay our tax bill, and he said no. I said, ‘Sir, if you want to have cars on the road and planes flying in the sky, we have to pay for this tanker of fuel coming in or we’ll all be in trouble.’ It’s those kinds of moments when you are forced to confront issues that you learn from. If you work well with the stakeholders involved, you find that you can get an outcome that works.” Keeping calm under extreme pressure is one of the things Gleeson has learned is essential to being a successful leader. “When there’s chaos around you, you have to bring clarity and purpose. You can only deal with situations as they arise or evolve and work with what’s in front of you, so your ability to analyze, understand and then pivot is absolutely critical,” he said. “Keep calm and rely on the team members around you to gather information to help you make the right decisions and work your way through things systematically.”

THE NEXT SEASON These days, Gleeson is fully focused on the future of NACS and the convenience industry. “I have a really positive outlook. That’s based on past performance, which as they say is usually an indicator of future performance. Our industry has grown exponentially year on year—we have broadened our categories and services with all of the amazing offers you see today,” he said. He sees three factors as key to winning. Foodservice: “Foodservice, in particular, is a significant repeat opportunity for our industry. Fuel demand is evolving, primarily driven by adoption of EVs and greater efficiency of ICE vehicles; however, foodservice offers multiple daily occasions to serve customers. I often say, ‘You fuel your car once a week, but you fuel your body three or four times a day.’ That creates enormous growth potential that our member retailers and suppliers can capitalize on. Executed well, foodservice in our industry can rival or surpass quick-service restaurants. Our

After hanging up his boots, Gleeson continually returned to Croke Park, Dublin’s Gaelic Games stadium—first for team events with Topaz Energy (pictured), and later during Aramark’s stadium contract. “I got to spend my last 10 years working in Croke Park and meeting my heroes and idols on a regular basis,” he said.

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While addressing attendees at the NACS Executive Leadership Program at Cornell over the summer, Gleeson likened his leadership journey to climbing K2. “It’s not the highest mountain in the world, but it is the hardest to climb... To get to where I am today, I had to learn a lot of new skills and develop things within myself that weren’t natural to become a better leader.”

If you’re not serving a customer directly, you’re serving someone who is serving a customer. industry has the huge advantage of location, value for money and trusted customer relationships. This will make foodservice a cornerstone of long-term sustainability and profitability for most progressive c-store operators.” Advocacy: “The biggest threat we face as an industry is regulation. As NACS and as the convenience and fuel retailing industry, our job is to educate legislators, proactively and constructively, to help find solutions that work for the consumer and for the retailers, because we must coexist. What I have found during my time in advocacy is the more you have the conversation, the better chance you have of a good outcome. We need to make sure we share our voice and perspective. That’s really crucial. Grassroots efforts of retailers sharing their voices works. I’ve seen it work. And that’s how we get favorable outcomes for the industry going forward.”

To learn more about Frank Gleeson’s background in advocacy, turn to this issue’s Inside Washington, which starts on page 22.

Technology: “In order to be innovative, ready for new categories and able to scale your business, you must have technology in place. The most progressive retailers start with what problem they’re trying to solve and how to use technology to help with it, whether that’s at checkout or in back-office operations. There are so many opportunities to deploy technology. You’ve got to do it in a way that helps your employees do a better job or reduces your cost but doesn’t diminish the customer experience. A great example isTruAge®—I worked closely with the TruAge team for over a year before becoming CEO of NACS. With TruAge, NACS looked at the future of age verification and how digital tools were developing. It came up with a solution that’s made both for today and can evolve in the digital ecosystem going forward.” Lauren Shanesy is a writer and editor at NACS and has worked in business journalism for a decade. She can be reached at lshanesy@ convenience.org.

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NO THC BAN

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HEMP BEVERAGES ‘The sky’s the limit’ for this category—but acting now is critical. BY MELISSA VONDER HAAR

emp beverages made quite the splash at the 2025 NACS Show, appearing in the Convenience Catalyst Showcase and dominating not just category discussions, but several Education Sessions and even General Sessions. Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives (CABA), pegged the hemp beverage market at nearly $1 billion in 2025, with the potential to hit $5 billion within a few years during the “Cracking Open the Potential of THC Beverages” Education Session. “THC is the fastest-growing category in adult beverage,” she said. Major retailers have taken note. Total Wine & More has long been in the THC beverage business. Circle K entered the space in 2025, followed by DoorDash. And during the week of the 2025 NACS Show, Target announced it was piloting the sale of THC beverages in 10 Minnesota stores. Jason Zelinski, vice president of North American retail at NielsenIQ, predicted hemp beverages could easily reach 5%–7% of total U.S. alcohol sales within five years. “If we get federal runway?” he said during the “What’s Really in the Can? Selling Alcohol-Infused Products” Education Session. “The sky’s the limit.” Or not. Tucked more than 100 pages into the bill to reopen the government after the longest shutdown in U.S. history was a provision championed by Senator Mitch McConnell (R-Ky) to end what some have described as the “hemp loophole” from the 2018 Farm Bill, which descheduled hemp grown with less than 0.3% THC.

Numbers to Know

WHERE WE ARE AND HOW WE GOT HERE The ban took many bystanders by surprise. Earlier this summer, McConnell had agreed to strip such language from the Senate appropriations language after facing pushback from Sen. Rand Paul (R-Ky). Though the ban wasn’t reintroduced to the Senate version of the spending bill until hours before the vote, it didn’t shock long-time hemp advocates like Eberlein. “We knew how McConnell felt, and he’s been very vocal about that for years,” she said. As have other lawmakers. Proposals to ban intoxicating hemp have surfaced repeatedly since the 2018 Farm Bill’s passage but have never gained enough support to pass.

PROHIBITION DOES NOT WORK

• $28.4 billion: Estimated size of the U.S. hemp market (U.S Hemp Roundtable) • 95%: Estimated amount of hemp consumables banned under the current federal language (U.S. Hemp Roundtable) • 486%: Year-over-year growth of THC beverages at convenience (NielsenIQ) • 86%: Of the U.S. vapor market is comprised of illegal flavors (Truth Initiative) • November 12, 2026: The date the intoxicating hemp ban goes into effect

The government shutdown provided the perfect storm. “This language would not have passed in a normal standalone bill or normal appropriation process—they tried,” said Jake Bullock, co-founder and CEO of the beverage brand Cann. “It was only in the dark of night, attached to a bill to end the country’s longest government shutdown. People’s SNAP benefits, military payments … all of these other big issues were at stake.” “Forcing this into a must pass bill to open the government obviously led to significant complications in facilitating real debate through our partners in congress,” added David Mukpo, CEO of Mac Brands (whose THC beverage portfolio includes Pamos, Buddi and Lolli Soda). That lack of debate paved the way for what effectively amounts to a ban on intoxicating hemp. The new language defines any hemp-derived cannabinoid products containing more than 0.3% total THC—or other cannabinoids with “similar effects”—or more than 0.4 mg of total THC per container as federally illegal. The 0.4 mg threshold won’t just eliminate intoxicating hemp products, it will also wipe out much of the non-intoxicating CBD market, since most CBD products contain trace amounts of THC.

Convenience retailers know all too well what happens when consumer demand collides with prohibition: Responsible players exit the market while bad actors thrive underground. 48 JANUARY 2026 convenience.org

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But all is not lost. Pamela Epstein, chief legal and regulatory officer for Nexus Agriscience, argues that hemp operators—and the retailers who sell their products— now have the opportunity to come together to not just advocate for an unregulated “loophole,” but for real, clear, responsible regulations. “The intoxicating hemp market is at an inflection point,” she said. “We’re no longer talking about the poison, we’re talking about the dose.” Here’s what convenience retailers should know about what did and didn’t happen in federal law, the case for regulation over prohibition and the important role convenience can play in preserving the hemp-THC market— especially for hemp beverages.

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A MAINSTREAM MARKET AT STAKE

“This removes over 95% of all products on the market,” Mukpo said. The move has frustrated not just brands but also retailers and state regulators who have spent years building responsible markets that their consumers have come to rely on. “Since 2022, Minnesota has built one of the most thoughtful, functional and consumer-focused regulatory frameworks in the country—and it’s working,” said Lonnie McQuirter, director of operations for the Minnesota-based 36 Lyn Refuel Station and chair of the NACS Legislative Committee. “Washington D.C. should not punish success simply because it arrived ahead of schedule.”

A GLIMMER OF HOPE Though the “Hemp THC Banned” headline grabbed national attention, the spending bill did include provisions the industry broadly supports. First, it re-affirmed the legality of naturally occurring Delta-9 THC, while banning synthetically derived cannabinoids—compounds that are intoxicating but, unlike Delta-9 THC, are not found naturally in the hemp plant. Mukpo described these synthetic products as “the key risk factor” for many regulators and banning them “does have broad consensus” among hemp beverage stakeholders. Second, Delta-9 THC was not completely banned—only restricted. “For the first time, Congress has set an amount of THC that will be allowed in consumer products,” Epstein noted. “That’s a recognition. We wouldn’t put 0.4 milligrams of heroin in a product because that is a dangerous substance.” While 0.4 mg is still far below reasonable use levels, many in the industry view it as a starting point. A chance to negotiate for a higher, more realistic dosage cap. Most importantly: the ban is not immediate. The new hemp limits won’t take effect until November 12, 2026, giving industry stakeholders one year to fight for better regulations. “The one-year implementation is a lifeline,” Eberlein said. Or as Bullock put it, “This is not a ban—it’s a one-year shot clock to go get the rules that we’ve always wanted.”

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WHAT HAPPENS WHEN AN ESTABLISHED MARKET IS BANNED No one in the industry disputes that some players exploited the “loophole.” But most agree those high-dose, synthetically produced, youth-targeted products—not the low-dose

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Given the fact that there has been no enforcement in the vape category, it certainly raises questions about how the hemp ban will be enforced.

The hemp rules apply to all product forms—flower, vape, edibles and beverages—but beverages occupy a unique position. They’ve thrived specifically because they’re available in mainstream retail. Bullock and Mukpo first launched their beverages in marijuana dispensaries. But the dispensary consumer proved very different from the low-dose THC beverage drinker. “By and large, dispensary consumers are not looking for low-dose beverages,” Mukpo said, noting that beverages account for under 2% of dispensary sales, most of which are high-dose products. The 2-10 mg beverages offered by brands like Cann and Mac Brands didn’t take off until the 2018 Farm Bill allowed sales outside dispensaries in outlets where consumers shop for alcohol, not cannabis. Since then, low-dose THC beverage sales have soared, posting triple-digit growth in 2025, according to NielsenIQ. Minnesota, the first state to regulate low-dose hemp, illustrates the opportunity. “Minnesota’s regulated hemp market has been opening the door for adults who might not have ever tried a cannabis product before,” said McQuirter, noting the state’s 5 mg-per-serving THC cap. “They deliver a mild experience for adults looking for a different experience than highpotency cannabis.” “What’s amazing is taking that same product and watching it expand outside the dispensary channel has completely changed the face of what that consumer looks like,” Mukpo said. “Not because the product changed—it simply changed the consumer it was available to.” Consumer data reinforces the category’s legitimacy. A 2025 survey by Bump Williams Consulting found: • 80% of adult beverage consumers expect to replace alcohol with THC beverages on some occasions. • 37.5% predicted they would decrease alcohol consumption. • 46.5% expected to increase THC beverage use. Even in states where hemp products can’t yet be sold at mainstream retail, retailers see the potential. “Allowing the sale of responsibly regulated low-dose hemp products would help by giving retailers a lawful, in-demand alternative,” said Alessandra Magnasco, senior director of government affairs for the California Fuel and Convenience Alliance (CFCA). “This new product category would support small businesses, help stabilize store revenue and allow retailers to continue serving their communities while staying fully compliant with state law.”

beverages sold in liquor, grocery and convenience stores— caused the knee-jerk policy reaction. “We are in the situation we’re in because bad actors were selling these highly potent, highly intoxicating, synthetic products, marketed towards children,” Bullock said. Of course, convenience retailers know all too well what happens when consumer demand collides with prohibition: Responsible players exit the market while bad actors thrive underground. According to Lyle Beckwith, NACS senior vice president of government affairs, this pattern has played out repeatedly. “The simplest way to look at it is microcosms of where there were flavored vape bans or menthol bans,” Beckwith said. “Those categories don’t go away—they just go to other, less law-abiding retailers.” California provides a clear case study. A report from the Mackinac Center found that after the state’s 2022 menthol cigarette ban, California now leads the nation in cigarette smuggling. A 2023 WSPM Group study of discarded packs showed nearly the same percentage of menthol cigarette consumption post-ban as before—post ban, many were non-FDA-approved products trafficked by Mexican drug cartels. “California retailers have seen firsthand how bans on previously legal products can fuel a thriving black market,” said Magnasco. “Even though retailers like CFCA members have followed the law and removed these products from their shelves, many have seen steep declines in tobacco sales because noncompliant sellers from the illicit market openly ignore the ban.” The vapor category provides another warning. Flavored

e-cigarettes and vaping products have technically been illegal without FDA approval (which has never been granted) since 2020—yet research from the Truth Initiative found that over 86% of e-cigarettes sold in 2025 were flavored and illegal. Unlike previous tobacco regulations, the hemp provision appears to contain no federal enforcement plan. “I have no idea what the enforcement plan is,” Beckwith said. “And given the fact that there has been no enforcement in the vape category to speak of, it certainly raises questions about how this will be enforced.” That’s one reason NACS has committed to advocating for sensible low-dose hemp beverage rules, even on behalf of members who don’t currently sell these products. “We are advocating for regulation rather than prohibition,” Beckwith said. “We know if there’s market

We know if there’s market demand, people will find it—and they’ll find it from people who don’t check IDs, who don’t pay taxes and who sell lots of other illegal things.

Powerful Allies In the wake of the hemp legislation, several influential organizations have voiced support for regulated hemp products—especially low-dose beverages. NACS “NACS has advocated for stronger regulation of intoxicating hemp products and is opposed to an outright ban. Such products represent a growing product category in parts of the country where state laws allow them to be sold. During the yearlong implementation period, NACS will continue to advocate for sensible and responsible regulation which allows our industry to participate in the market.” —NACS Daily News article (Nov. 11, 2025) Wine and Spirit Wholesalers of America (WSWA) “We respectfully urge Senators to work with us to establish a balanced regulatory system that protects consumers, ensures product safety, and supports state authority.” —Letter to senators supporting the Rand Paul amendment to study hemp and create regulations vs. a ban Veterans of Foreign Wars (VFW) “(The ban) would drive veterans looking for relief straight to black-market junk— making things riskier, not safer.” —Letter sent to House and Senate leaders after the ban passed

NACS JANUARY 2026 51

WHAT COMES NEXT: BUILDING A COALITION The pressure is on for those hoping for regulation instead of prohibition. Though the federal ban doesn’t take effect

Finding the Right Allies

already Dozens of hemp advocacy groups emerged have e mor d existed before the ban—an can ilers reta nce enie since. Here’s how conv with. identify the right partners to work 1. Rely on Existing Associations out there “There are any number of groups e position sam the that may or may not have S, NAC of h as NACS,” said Lyle Beckwit s tion rela ent noting that NACS’ governm best “The . ners part team is currently vetting their get to ilers reta thing to do would be for of rlein Ebe a Dian information from NACS.” ed urag enco and t CABA echoed this sentimen ent curr r thei retailers to reach out to associations.

2. Work With Your Hemp Brands k with “I would encourage retailers to wor p and hem l loca the brands wholesalers, and . said rlein Ebe convenience associations,” ral, fede e activ e “When it comes to being mor can you but red, NACS has convenience cove lesalers to encourage your suppliers and who aware of is on confirm their national associati ls. Alcohol, goa r thei the issue and representing ing and align are retail and hemp associations strategizing as we speak.” 3. Look For Proven Groups naturally “New groups coming to the Hill will time is of and require an onboarding period— the essence,” Eberlein noted. 4. Align on Priorities works in “Educate yourself and know what of Nexus your business,” said Pamela Epstein ded min Agriscience. “Then go and find likegroups.”

until November 2026, realistic timelines for rulemaking are much shorter. Retailers and wholesalers are unlikely to risk holding inventory that could suddenly become illegal. “If rules are not passed in the next eight months, retailers could continue to sell until November—but they might not be able to get it if wholesalers stop carrying,” Bullock said. Getting anything passed through Congress remains an uphill battle, but advocates agree on one thing: Success will require coalitions that extend beyond hemp. “We need to bring on traditional businesses,” said Epstein of Nexus Agriscience. Convenience could be a key ally. The channel’s size, credibility and long-standing relationships at both state and federal levels make it an essential voice. “I think legislators will naturally give more weight to the trusted, long-established retailers who have spent decades in the alcohol industry, rather than to the newcomers in the fastexpanding hemp sector, which has yet to build comparable relationships at the capitol,” Mukpo said. Shifting the narrative from “preserving a loophole” to “establishing regulation” has already made it easier for mainstream partners to join the conversation. Groups like CABA are pushing for a regulatory framework that mirrors alcohol’s—a familiar, proven model for responsible age-gated products. “We want to show that we are looking to play in their sandbox and work within their infrastructure and to create a more even playing field,” said Eberlein, citing outreach to both alcohol retailers and manufacturers. “We need to make sure that it is abundantly clear what we see our pathway forward being, so that we can collaborate and come up with sensible regulation they can participate in.” Flexibility will be key. Epstein cautions that proposals seeking to simply undo the hemp ban without dosage limits or state oversight “are not going to get to 60 votes.” “It really is in the hands of the industry to figure out how to come together and ask for the low-dose channel that it so desperately needed and wanted,” she said. Beckwith agreed, noting that like any negotiation, coalitionbuilding must balance ideals with political realities. “Our main goal from the NACS government relations perspective is to make sure that if these products are legal, convenience retailers can responsibly sell them,” he said. With the early support of associations like NACS, the Wine and Spirit Wholesalers of America (WSWA) and others, hemp beverage advocates remain cautiously optimistic. “This is not the conclusion,” Epstein said. “This is the opening of a conversation.” Melissa Vonder Haar is the managing director of TradeWorks from iSEE Store Innovations. Follow her on X at @iSeeMelissaV.

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demand, people will find it—and they’ll find it from people who don’t check IDs, who don’t pay taxes and who sell lots of other illegal things.”

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54 JANUARY 2026 convenience.org

Retailers are employing creative, high-impact strategies to attract customers that don’t break the bank. BY LAUREN SHANESY

f you live near Tulsa, Oklahoma—or if your algorithm serves you convenience store content on TikTok—you may know Mary Hatheway, marketing manager at Reeder’s, her family’s c-store. She’s also a local influencer with more than 220,000 followers combined across Instagram and TikTok. She runs the social media accounts for Reeder’s, which is one of the things she said has made the store really grow. “We’ve basically become a TikTok gas station,” she said. Mary’s videos frequently include her mom, owner Cheryl Reeder. “My mom and I are known for finding and trying anything that’s trending on the internet and bringing it into the store. We have really tried to make our convenience store very trendy and NACS JANUARY 2026 55

Small operators can embrace bold design that tells a story about their brand. “Think about what you want to be known for,” said Ernie Harker of Ignite Retail Technology. “A lot of stores end up blending in with the lowest common denominator and focus on being fast, friendly and convenient—but that’s what everybody’s about, and there likely isn’t enough differentiation in your product offering to drive preference.” Harker formerly worked in marketing for Maverik and pointed to the brand’s outdoor and adventure themed branding. “That becomes distinctive. It attracts people. So what can a small operator do to embrace a theme around something they love?” One good example, he said, is Native American tribal retailers that embrace their culture throughout the store. “That makes them so unique, and when visitors come it makes them want to stop and shop there because they’re not just going to a store, they’re engaging with the culture of an area and a people. I would love to see more operators invest in a richer, more immersive, thematic brand that can influence the architecture, interior design, marketing and advertising of their location,” said Harker.

exciting,” she said. “Reeder’s has been in operation since 1961, but many people didn’t know about what our store offered until we started posting online. Now that’s a reason that people come into the store—they recognize us. Even if I don’t always post about the convenience industry on my personal channels, making myself known online has had a huge impact for promotion.” Social media is a powerful marketing tool—one with far reach, high engagement and potentially dramatic impact. And, it’s free. It’s one of several tools with a low barrier to entry that independent and small operators can use to their advantage. Independent and smaller retailers may not always have the funds, resources or employee bandwidth to dedicate specifically toward marketing campaigns. But these retailers also have significant strengths—creativity, the flexibility to test out new ideas, local impact in their community and

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Recently, Yatco underwent a rebranding that made the company’s “chain of mom-and-pop stores,” as Hussein Yatim of Yatco Energy put it, more cohesive. His father, who started with one store in the 1990s, had expanded the business but the company didn’t have a thematic look and feel, he explained. “You could go into five different Yatco c-stores and you wouldn’t know. Everything was different.” They worked with a third-party company to develop a brand that was recognizable across the state. “I wanted customers to know that when they see a Yatco, it won’t be like any c-store in the market. Now, we have merch (t-shirts, hats, a winter beanie, etc.,) and when someone wears it around town, people are seeing that logo over and over again and start to recognize it,” Yatim said. “For one of our new locations at the base of where two major highways intersect, we put up a billboard with the Yatco logo. There are probably 80,000 to 100,000 cars coming down that road a day. So every day, people are seeing the logo coming into the city, and even if they don’t come to the store, you hit them over and over again,” he added. “That’s done a lot for brand awareness and appeal.”

relationships with their customers— that allow them to have a big voice without spending big money. LEAN IN TO LOCAL “Small and independent operators can do things on a very local level that large companies could not pull off,” said Ernie Harker, CMO at Ignite Retail Technology. He said engaging with the community and tailoring campaigns,

promotions or events to your customer base is one of the top advantages retailers have for connecting with customers and promoting the store. “Let’s say you have three stores in southern Louisiana. Host a big crawfish boil. Or celebrate your local high school with a promotion on the last day of school or something for the sports team,” he said. This not only gets people’s attention, but makes customers

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feel seen and offers an emotional connection to the store. Yatco Energy, a Massachusettsbased family-run business with 19 stores, sponsors local Little League teams and partners with local colleges to sponsor golf tournaments and other sporting events. “During those, we’ll set up tents, hand out samples and give away free items. We once did a ‘spin-the-wheel to win’ a prize handout, which was fun,” said Hussein Yatim, vice president at Yatco. “Those events get really good engagement. I market them on social media and will send out blasts through our app so that customers know about them.”

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CURATED CONTENT Even when she’s not directly promoting Reeder’s, Hatheway said growing her own personal brand online has helped direct attention back to the store and connect her with other local businesses. She will often have a Reeder’s hat or shirt on while filming an unrelated video. “There’s always hints,” she said. But more importantly, she said she and her mom have made themselves local personalities. “People in the community know us both from the store and from our videos. They feel like they’re our friends, that they get to know us through our content, and therefore they trust us, our reviews and our business.” During Covid, when other restaurants and businesses were forced to shut down, Reeder took to social media to share content about the store’s fresh food program and in-house chef. “My mom had a whole set up with a table and mics in the automotive shop, and she’d eat new dishes to show people that we were still open and cooking and that the food was high quality. The guys in the background were working on the vehicles, and it was just a really fun way that we marketed the store at the time,” said Hatheway. Another strategy—lean on local

Rave Reviews These days, “Our reputations live and die on Google,” said Peter Rasmussen of Convenience and Energy Advisors. “Use that.” He gave the example of an independent sub shop that’s near his house in Tampa, Florida. “They put up signs around town that say ‘Gateway Subs, Just Google Us.’ They have a 4.9 rating out of thousands of reviews. That kind of thing works.”

influencers who already have a platform and partner with them to try your food on their channels. “It feels authentic and it will generate a lot of impressions for your brand,” said Rasmussen. And while social media is free, you realistically will have to spend a little bit of money to get the reach you want. “With social media, there’s too much stuff out there and organic posts don’t grow the way they used to, so you don’t want to rely only on that. But you can spend $10 per day just to add a little gasoline on the fire and expand your reach. And, it will help you localize your messaging. It’s fairly inexpensive,” said Harker. LEVERAGE YOUR LOYALTY PROGRAM Loyalty programs are great for keeping customers and building baskets, but operators may not be using them to their full potential. “A lot of operators don’t use their loyalty program for marketing, they just use it for promotions. But you need to communicate with your customers, keep in front of them and build connection,” said Harker. He said that operators should share their personality and messaging through loyalty apps the same way they do on social media. “Your loyalty program already has an audience. Use it for engagement, don’t make it only offer based.”

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A lot of operators don’t use their loyalty program for marketing, they just use it for promotions.

Local involvement isn’t just about engaging customers and nearby residents, it’s also about connecting with local businesses in your area. “We all probably underestimate the value of business-to-business relationships,” said Peter Rasmussen, CEO and founder of Convenience and Energy Advisors. “For example, let’s say a convenience store owner gives the local hardware store coupons for free pizza to give to their employees. That investment of starting a relationship just compounds, from bringing in new everyday customers to that store manager coming back to you and saying, ‘Hey, I’m having a lunch for my employees. Can I buy it from you?’”

Marketing Magic, According to Al Hebert In his years eating at convenience stores and covering gas station food across the country for Gas Station Gourmet, Al Hebert has seen it all— from a store with an attached oddities museum that houses a mummy to one with a psychic goat that can predict presidential elections. Here are some of the most creative, unique or clever things he has seen small and independent operators do to attract customers and put their store on the map. Cooking for the local high school football team “Nathan’s Barbecue had great food, but no one knew it was there. He went to the local high school and offered to host a fundraiser— the school sold the tickets and Nathan cooked. Suddenly everyone wanted to know where the food came from. Not long after that, Nathan had doubled the size of his dining room.” A psychic goat Yes. Al once visited a store that has a resident psychic goat that supposedly can predict presidential elections. What’s its secret? Only the goat knows, but it did get customers to stop. Sales that stick … literally “At one store I went to, the owner had awesome chicken tenders but they weren’t selling well, until he put them on sticks. He said food on sticks had 40% more sales than food not on sticks.” Promoting at the pump “I remember a lady who bought a defunct c-store and fixed it up, and she was cooking her grandmother’s recipes. But she wasn’t getting any traction. She started going out to the pumps with samples, and people began

coming in for the food. She increased her sales by 300%. Another store owner in New Hampshire put chalkboards outside at the pumps with the daily specials.” A (maybe) real mummy? “There’s a place in Arizona I’ve gone to a couple of times with an oddities museum attached to it. They have a mummy … and other interesting displays that I’m sworn to secrecy about.” Connecting with the community “There was a store in New Mexico where the owner took about 150 square feet and added a seating area—leather chairs, a sofa, a coffee table and a big screen TV above the fireplace. The next thing you know, salesmen are coming by and doing work on their laptop and buying a coffee and lunch. Then a group of ladies who lived nearby came in and asked if they could hold their quilting circle there. He put in a book exchange for residents to trade in their books. Politicians started meeting with their constituents there. The space has more than paid for itself.” Gamified urinals Yeah, we’ll let you use your imagination for that one.

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SELL YOUR SIGNATURE A great way to gain acclaim in your market is to be known for something

When operators only focus on functionality and not personality, the competition can come in and solve the same problems.

—something customers can’t get anywhere else, said Harker. His advice: Develop a signature product that customers can only come to you for. “That local thing everyone loves and can’t live without.” Some ideas include using a family recipe, being the best place in town for sloppy joes, frying up can’t-miss hushpuppies to go with your southern menu, selling next-level french fries with unique toppings or the world’s-best roasted peanuts. “Come up with something that you can execute consistently and that’s highly different and crave-worthy, so that when people drive by they’re like, ‘I have to stop, I can’t drive by this place without getting X.’” he said. “And then, give it a good name! Sell t-shirts for it.” “This kind of thing makes a small operator defensible from big competitors that could come in with big budgets and the same standard products. Locals will support their store,” Harker added. “When

All In on AI Babir Sultan, owner of five Fav Trip stores in the Kansas City, Missouri area, has always marketed his store creatively online. You might have seen his YouTube channel, where he posts security camera footage of shoplifters getting caught in the store. He was also an early adopter of AI for the convenience business, and one of the new ways he’s using it now is to create fully AI-generated commercials. He debuted the first commercial in early 2025, noting that the script, visuals, voiceover narration and music composition were all produced through various AI platforms. “This isn’t just a commercial—it’s a showcase of how AI can transform creativity. By combining multiple AI tools, we’ve demonstrated how technology can streamline the creative process and deliver highquality results,” he said on LinkedIn.

60 JANUARY 2026 convenience.org

operators only focus on functionality and not personality, the competition can come in and solve the same problems. Really think about what makes your store different.”

Lauren Shanesy is a writer and editor at NACS and has worked in business journalism for a decade. She can be reached at lshanesy@convenience.org.

For small operators, AI can be a great tool for generating creative materials in a low cost and efficient way. “Some retailers are having phenomenal results with AI. They’re able to produce marketing that previously they didn’t have the time or bandwidth to do. Now they can create their own images instantly without having to hire multiple people or contract creatives,” said Ernie Harker of Ignite Retail Technology. “Many people will say, ‘We’re just a gas station. We don’t need AI.’ But the ones who are leaning in and investing some time into it for creative production are seeing tremendous benefits and will be able to compete better than those who don’t.” He said one easy place to start with AI is by generating social media posts. You can ask ChatGPT, for example, to draft posts related to your brand, seasonal offers or items you want to promote.

LanaSham/Adobe Stock

Yatim said Yatco will run contests and sweepstakes through its app and has given away things like coolers and skateboards with simple tap-to-enter programs. “It’s fun and it creates engagement, and it gets customers to interact with our brand.”

Drink in greater Profits Royston helps you capitalize on the premium potential of self-serve beverage retailing with customized Hot and Cold Beverage Stations carefully designed to maximize ROI, encourage customer engagement, and reduce operating costs. Our American Made steel cabinet systems feature powder coat paint or laminate finishes and a host of robust countertop options for superior durability. Patented cup dispensers accommodate any size in a single opening, vertically or horizontally while built in features keep cups, lids, straws, creamers, stirrers and accessories neat and organized. Trusted by the biggest names in the industry for over 40 years, Royston helps you drink in greater profits. Visit roystonllc.com for more.

www.roystonllc.com | 800-334-1766 | info@roystonllc.com

NACS JANUARY 2026 61

Cool New Products Guide 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 2025. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

NEW TO THE INDUSTRY

C. Cretors and Company Self Serve Popper

Cretors Introduces a New Self-Serve Popper Designed to Boost Profits

Designed for maximum self-service efficiency and profitability, the new Cretors’ Self-Serve Popper/Warmer reduces labor costs by shifting service from employees to customers—while driving impulse sales. A customer-controlled conveyor dispenses fresh popcorn directly into the container, eliminating hand contact and elevating sanitation. Perfect for C-stores, retail spaces, theaters, bars, cafeterias, or any environment offering refills or a self-serve concession experience. Contact Shelly Olesen at 847.616.6901 or visit www.cretors.com.

62 JANUARY 2026 convenience.org

NEW DESIGN

Ovention Ovens Conveyor C1600

Speed Meets Precision: The New C1600 Delivers Consistency Every Time

The new Ovention® C1600 Conveyor oven is built for the fast-paced demands of convenience store kitchens and gas station foodservice. This mid-size oven delivers consistent, high-speed performance with precise cooking control for hot, fresh food consistently made every time. Whether you’re serving pizza, sandwiches, or grab-and-go snacks, the C1600 keeps throughput steady and quality high. Designed to thrive in high-volume environments, it’s a reliable solution that helps simplify operations, reduce wait times, and meet customer expectations with every grab.

NACS

NACS Research My Voices: Custom Shopper Insights

Understand your shoppers with a custom survey

Shopper insights aren’t just data; they’re your roadmap to staying ahead in a fast-changing market. Confidently position your business to meet their needs while protecting your bottom line. Partner directly with the NACS Director of Research & Development on a custom shopper insights study designed for convenience retailers or suppliers. Within a month, you’ll receive expert analysis and actionable insights on a business issue of your choosing. Topics could include what motivates purchase decisions in your store or how to create experiences that drive loyalty and repeat visits. Learn more at convenience.com/KnowShoppers.

NACS JANUARY 2026 63

GAS STATION GOURMET

A Mom-and-Pop Store Finds the Right Recipe Pepperoni rolls and ‘Roundhill round steak’ help The Corner Market stay a step ahead of the competition. BY AL HEBERT

im Whittinghill operates The Corner Market, Roundhill, Kentucky’s one-stop shop. Roundhill is “in the middle of nowhere,” she said. The population of the town, which is about 30 minutes from the city of Bowling Green, is around 965. The store is built to serve locals. “If we don’t have it, you don’t need it,” said

The Corner Market, a one-stop shop in Roundhill, Kentucky.

64 JANUARY 2026 convenience.org

Whittinghill. “We have all the PVC pipe, nuts, bolts, nails, you might need. We have oil, antifreeze, dog collars and fencing supplies,” she said. Whittinghill’s parents built the store in 1988. “Dad bought the piece of land and there was a building on it. Back then, there weren’t as many big company c-stores. My mom, after dad

passed in 1995, worked hard to keep the store going as mom-and-pop country stores slowly disappeared. She made a connection with the people, and I think that is why we have survived.” Whittinghill and her husband took over day-to-day operations in 2019. Before that, she was a public school teacher for 20 years.

The Corner Market cook Debbie (left) and operator Kim Whittinghill (right) showcase sandwiches— including the store’s beloved bologna sandwich. Debbie is a staple of the store, having worked at The Corner Market for 29 years. “She’s just a very good cook, and the food evolved with her,” said Whittinghill. “She likes to experiment and try different things. She’ll make white or brown beans with cornbread, vegetable soup and taco soup. We’re making chili this weekend for the hunters.”

One of the first things Whittinghill did was add hoagies to the menu. “We slice the meat fresh as people order it and make sandwiches. Not a lot of places do that anymore. You can’t buy a fresh cold sandwich,” she said, adding, “Our sandwiches are huge. If you come here, you’re going to get your money’s worth.” She added: “Our t-shirts say ‘Home of the World’s Best Sandwich.’” And the most popular sandwich with customers? The bologna sandwich. “It’s huge,” Whittinghill said. The popularity of bologna goes beyond the sandwich. “I dare say we sell more bologna than anyone.” The store once had a contest for customers to guess how much bologna would sell that week. The total ended up being 150 pounds. “People call our bologna Roundhill round steak,” she said. “One

of our main breakfast items is fried bologna. People come in just for that. It brings people to our store.” Another popular menu item is pickled eggs—“They fly out of the store. We can’t make them fast enough. People will get two pickled eggs, and then they throw a little hot sauce, salt and pepper on them.” From April to October, the store sells soft-serve ice cream. “We have a lot of kids come in. Mom and dad bring them. Some people come every day for a cone. Customers are disappointed when we stop selling it,” Whittinghill said. Pepperoni rolls are another customer favorite. “It’s a seven-inch round piece of dough. We roll it out and make it big with a lot of cheese and a lot of pepperoni. We lather it with garlic butter on top. If someone calls and

says they want it with mushrooms or veggies, we make it for them any way they want.” The Corner Market recently made pepperoni rolls available anytime. “I wanted to expand the menu to give us something to focus on. With a dollar store every 10 miles, we had to compete.” The key is connection. “It’s a unique place. ... We know the customers’ names and ask about them and their families.”

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at GasStationGourmet.com.

NACS JANUARY 2026 65

CATEGORY CLOSE-UP OTHER TOBACCO PRODUCTS

Pouches Pull Ahead Consumers continue to show that they are interested in backbar alternatives. BY MELISSA VONDER HAAR

66 JANUARY 2026 convenience.org

$5,801

The average gross profit dollar contribution from OTP per store, per month.

Industry Sales

Source: NACS State of the Industry Report® of 2024 Data

% of In-Store Sales

7.7% 8.1% 2023

he Other Tobacco Products (OTP) category posted another strong year in 2024, cementing its position as the thirdlargest non-foodservice contributor to in-store sales and gross profit. According to the NACS State of the Industry (SOI) Report® of 2024 Data, OTP sales rose 7.0%, while cigarette sales declined 3.3%. Yet despite OTP’s momentum, the gap between the two remains wide. In 2024, per store, per month OTP sales averaged $19,663, compared to $46,437 for cigarettes. OTP’s $1,289 monthly sales gain couldn’t fully offset the $1,600 decline in cigarettes. “We’re still seeing a big sales gap between cigarettes and OTP,” said Emma Tainter, research manager of analytics and programs for NACS. “But if we look at gross profits, we see that they’re really close.” In 2024, cigarettes generated $6,389 in monthly gross profit versus OTP’s $5,801. By mid-2025, that gap had narrowed further—$5,664 for cigarettes and $5,328 for OTP, per NACS CSX data presented at the 2025 NACS Show. The reason? Margins. OTP’s average margin hit 29.50% in 2024, compared to just 13.76% for cigarettes in 2024. “The magnitude of the change within the last 10 years is significant,”

2024

Avg. Sales/Store

$18,374 $19,663 2023

2024

Gross Margin %

29.05% 29.50% 2023

2024

Source: NACS State of the Industry Report® of 2024 Data

NACS JANUARY 2026 67

CATEGORY CLOSE-UP OTHER TOBACCO PRODUCTS Other Tobacco Products Average Sales Per Store, Per Month n 2022 n 2023 n 2024 n 2025

$19,121

$25,000 $20,000 $15,000 $10,000 $5,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: NACS CSX Convenience Benchmarking Database

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.

Tainter said, noting OTP’s growth from 4.2% of in-store sales in 2015 to 7.6% in 2024, and from 3.3% to 5.8% of in-store margins during that same period. According to retailers like Jessica Starnes, director of loyalty and tobacco category manager at Weigel’s Stores Inc., innovation is the driving force. “We’re seeing accelerated unit declines in cigarettes and explosive unit increases in innovation—specifically nicotine pouches and vapor,” Starnes said at the 2025 NACS Show. In 2024, three segments—smokeless, e-cigarettes and other tobacco (modern oral)—accounted for most OTP sales. “Based on what we’re seeing now, 2025 will likely be very similar,” Tainter added. Below is how the top four OTP segments performed and what that means heading into 2026. OTHER TOBACCO: TAKING THE LEAD • Share of 2024 OTP Sales: 32.4% • In-Store Monthly Sales: $6,388 • Monthly Gross Profit: $2,087 After years as the category’s rising star, Other Tobacco claimed the top spot in both sales and profit. The segment’s sales surged 45.3% year over year, while gross profits jumped 56.1%—growth likely driven almost entirely by modern oral nicotine pouches. “I think we’re going to keep seeing Other Tobacco pull ahead,” Tainter

68 JANUARY 2026 convenience.org

said. “Nicotine pouches are transforming the backbar.” At Weigel’s, Starnes said the chain leaned into pouches. “We decided to become a ‘nicotine pouch destination,’” she said. The retailer reallocated backbar space, broadened assortments, worked with wholesalers to prevent out-of-stocks, and collaborated with manufacturers on trial and activation offers. The payoff? “Zyn is now the number two brand on our backbar and four pouch brands are in our top 20,” she said. “We’ve offset the cigarette unit declines.” For retailers, the data backs that strategy: Other Tobacco was the only OTP segment to post both sales and profit gains in 2024. The category’s overall 7.01% sales and 8.67% profit increases were entirely driven by pouches. “I think we could be far from market saturation,” Tainter added. “We see it quantitatively in the data and qualitatively, from just walking around the NACS Show floor this year.” SMOKELESS: HOLDING STEADY • Share of 2024 OTP Sales: 31.2% • In-Store Monthly Sales: $6,129 • Monthly Gross Profit: $1,406 The former category leader, Smokeless, remained resilient— accounting for roughly one-third of OTP sales. Sales dipped 1.1%, and

Other Tobacco Products Subcategory Data Same-Firm Sample, Per Store, Per Month Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2023

2024

2023

2024

2023

2024

2023

2024

Other Tobacco

23.9%

32.4%

$4,397

$6,388

$1,337

$2,087

30.40%

32.67%

Smokeless

33.7%

31.2%

$6,199

$6,129

$1,454

$1,406

23.46%

22.94%

E-Cigarettes

26.3%

21.9%

$4,840

$4,309

$1,582

$1,378

32.68%

31.98%

Cigars

12.9%

11.5%

$2,375

$2,256

$787

$748

33.16%

33.15%

Pipes

2.1%

2.0%

$383

$387

$107

$110

28.02%

28.48%

Papers

0.6%

0.7%

$111

$130

$50

$54

45.17%

41.50%

Pipe/Cigarette Tobacco

0.4%

0.3%

$70

$65

$20

$18

29.01%

27.55%

Total

100.0%

$18,374

$19,663

$5,338

$5,801

29.05%

29.50%

Source: NACS State of the Industry Report® of 2024 Data

gross profits declined 3.3%, making it the least affected segment among those that lost ground in 2024. “The market remains remarkably strong, stable and highly profitable,” said Matt Hanson, chief growth officer of Black Buffalo Inc. “Nonetheless, steadily rising prices are impacting consumer behavior, with some downtrading within the category away from premium brands and into discount brands.”

Some cannibalization is also at play. “We’re actually down in smokeless,” said Kathy Williams, senior category leader at Campbell Oil Co./Minuteman Food Mart. “Because major smokeless brands wanted to play in the pouch game, those consumers switched over to their nicotine pouches.” Still, Hanson sees opportunity for innovation within smokeless itself. “MST users are interested in and experimenting with potentially reduced-risk alternatives—but many are ultimately

Stores not selling illicit vapes lose about $161 per store, per day.

not satisfied with other products like nicotine pouches because they can’t deliver the taste, texture and pack-dipspit ritual that these consumers are accustomed to,” said Hanson, whose Black Buffalo line offers tobacco-free MST options. “We believe there is room for continued innovation to meet the full range of consumer preferences.” E-CIGARETTES: ILLICIT WOES CONTINUE • Share of 2024 OTP Sales: 21.9% • In- Store Monthly Sales: $4,309 • Monthly Gross Profit: $1,378 E-cigarettes saw the steepest declines—down 11% in sales and 12.9% in profits—though the data likely excludes

NACS JANUARY 2026 69

CATEGORY CLOSE-UP OTHER TOBACCO PRODUCTS

much of the illicit vapor market. “We collect data from retailers who strive to do everything by the book,” Tainter explained. “The data we collect is compliant with the law.” That’s a problem, since the FDA has approved only tobacco and limited menthol vape flavors—meaning most flavored vapes sold today are illegal. “Despite stepped-up enforcement by FDA, DOJ and CBP, the overall situation has not meaningfully improved,” said Chris Howard, EVP of external affairs and new product compliance at Swisher. “The market remains dominated by unapproved flavored product. As long as consumers can’t access legal

State and local flavored-cigar bans have had uneven but significant effects.

70 JANUARY 2026 convenience.org

products in the flavors they actually use, the illicit market will thrive.” And it’s hitting compliant retailers hard. “It’s estimated that 70% of vapor sales come from the illicit market,” Starnes said. “Stores not selling illicit vapes lose about $161 per store, per day. That’s nearly $5 million annually for Weigel’s 86 stores.” Howard agreed: “The ambiguity doesn’t just hinder lawful businesses, it rewards the illicit market at their expense.” Some retailers have tried to get creative. Williams said MinuteMan diversified into various nicotine-free flavored vapes.

“We really haven’t seen a huge shift,” Tainter said. Part of that is due to local flavor restrictions. “State and local flavoredcigar bans have had uneven but significant effects,” said Howard. “Retailers in those jurisdictions saw notable declines, while many consumers shifted purchases to nearby areas without restrictions.” As a result, cigar performance is highly regional. “We’re still a big cigar retailer,” Williams said, touting the chain’s demographics, location and an overall interest in limited time offerings as the driving force. “Our cigars are still growing.”

CIGARS: REGIONAL STRENGTHS KEEP IT RELEVANT • Share of 2024 OTP Sales: 11.5% • In-Store Monthly Sales: $2,256 • Monthly Gross Profit: $748 Cigars declined more than smokeless but less than vapor—down 5.0% in sales and 4.95% in profits. The segment did receive one piece of good news: the FDA’s proposed flavored cigar ban (along with the menthol cigarette ban) was withdrawn. Still, declines persisted.

TAKEAWAYS FOR 2026 Across OTP, the common thread is adaptability. Pouches are fueling category growth, smokeless remains resilient through innovation, cigars depend on geography, and vapor is mired in regulatory chaos. For retailers, success hinges on knowing your market and managing the backbar strategically. “It’s about looking at your data: what’s selling and what’s not,” Tainter advised. “The transition from cigarettes to OTP is happening everywhere, but it could look very different in California than it does in South Carolina.” Melissa Vonder Haar is the managing director of TradeWorks from iSEE Store Innovations. Follow her on X at @ iSeeMelissaV.

ADVERTISER INDEX Contact Information

Page

Altria Group Distribution Company..................... Inside-Front-Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com American Coalition for Ethanol...................................................................... 27 www.flexfuelforward.com BIC Corporation...................................................................................... 7 www.us.bic.com/en_us Black Buffalo Inc...................................................................................31 www.Blackbuffalo.com Cash Depot............................................................................................17 (800) 776-8834 sales@cdlatm.com www.cdlatm.com C. Cretors & Company.......................................................................................62 www.cretors.com Cool New Products Guide..........................................................................62-63 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Cheyenne International, LLC............................................................................19 (704) 937-7200 www.cheyenneintl.com Chyl Brand LLC .............................................................................................36-37 (404) 642-4967 www.getchyl.com

Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

Contact Information

Page

Grabba Leaf LLC .................................................................................. 57 www.grabbaleaf.com International Dairy Deli Bakery Association................................................ 53 www.iddba.org JTI LIGGETT ............................................................................................13 www.jti.com

Contact Information

Page

PMI U.S. (Game) .................................................................................. 57 (800) 367-3677 www.smna.com PMI U.S. (ZYN) ....................................................................................... 5 (800) 367-3677 www.smna.com

Keurig Dr Pepper................................................................................. 43 www.keurigdrpepper.com

Polar King International Inc................................................................................ 3 (866) 576-7645 www.polarking.com

Mike’s Hot Honey.............................................................................................. 35 www.mikeshothoney.com

Portion PadL......................................................................................................26 www.portionpadl.com

Monster Energy Company...................................................................41 www.monsterenergy.com

Premier Manufacturing....................................................................Back-Cover (636) 537-6800 www.gopremier.com

NACS Convenience Voices................................................................................ 63 www.convenience.org/Solutions/Business-Intelligence-Data-Analytics/ Convenience-Voices

Reynolds Marketing Services Company ............................................ 9 www.rjrt.com

NACS Media: Thank-You................................................................................... 70 www. nacsmediakit.convenience.org

Royston Group ..................................................................................................61 www.roystonllc.com

NACS Membership ...........................................................................................26 www.convenience.org/Membership

Trion Industries..................................................................................................15 (800) 444-4665 www.triononline.com

NACS State of the Industry Summit 2026 ........................ Inside-Back-Cover www.convenience.org/events/SOI North American Bancard........................................................................ Outsert www.north.com

Xcaliber International.........................................................................25 (888) 4-XCALIBER www.xcaliberinternational.com

Ovention, Inc. ................................................................................................... 63 www.oventionovens.com

THANK YOU for your partnership. We appreciate your business!

Advancing Convenience & Fuel Retailing

DECEMBER 2025

TOBACCO IN THE UK Adapting to strict regulation EDUCATION SESSIONS Insights from the 2025 NACS Show

Let’s work together to make 2026 even better for your business, NACS and the entire convenience store industry. Every dollar invested in NACS goes back into making the Convenience Store Industry more successful.

Henry Armour has reshaped NACS and the industry at large—and isn’t done yet

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NACS JANUARY 2026 71

BY THE NUMBERS

Happy Employees, Happy Stores Turnover in the convenience channel is a perennial issue. While store employee turnover in the industry typically tops 100%, top decile companies, who generate the most monthly per store operating profit amongst the sample, typically see lower turnover rates. For the first half of 2025, employee turnover averaged 60.8% and manager turnover was 17.1% for top decile operators in the NACS CSX Database, compared to 156.3% employee and 65.3% manager turnover for the lowest store operating profit generating companies (bottom decile). While many factors contribute to lower turnover rates, top decile companies typically invest more in wages and benefit expenses. These operators spent almost $5 more per labor hour ($23.10) than those in the bottom decile ($18.22). That investment paid off for top operators, who generated more than $8 more in gross profit per labor hour than companies in the bottom decile.

Top and Bottom Decile Operator Comparison Metric

Top Decile

Bottom Decile

Difference

Employee Turnover

60.8%

156.3%

(95.5) pts

Manager Turnover

17.1%

65.3%

(48.2) pts

Wages Benefits % of GP$

32.7%

31.0%

1.7 pts

In-Store GP$/Labor Hour

$37.80

$29.66

1.3x

Labor Cost per Hour

$23.10

$18.22

1.3x

*Decile ranking based on store operating profit per store, per month from January - June of 2025 Source: NACS CSX Index Comparison by Decile Jan-June 2025

72 JANUARY 2026 convenience.org

NACS State of the Industry Summit

REGISTRATION IS NOW OPEN April 14-16, 2026 • Schaumburg, IL

The only industry event providing deeper insights into convenience and fuel retail financials, operations, category trends, and consumer behavior.

Retailers receive one complimentary registration by submitting their store's data to be included in the NACS State of the Industry Report® of 2025 Data. Learn more at convenience.org/SOISurvey.

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