NACS Magazine August 2022

Advancing Convenience & Fuel Retailing

AUGUST 2022 STORE DESIGN New looks from Maverik and MAPCO ENERGY DRINKS Healthy options power innovation

Private-label brands strengthen loyalty amid supply chain and inflation woes.

Staying Power

convenience.org

TO ALL OUR RETAIL PARTNERS

We would like to extend a sincere thank you to all of our retail partners who implemented the PM USA Strategic Options and Digital Trade Program. These programs are successful because of your commitment and collaboration.

We value your participation and look forward to continued success in the future.

PD002 | ©2022 Altria Group Distribution Company | For Trade Use Only

ONTENTS NACS / AUGUST 2022 FEATURES

30 An Exclusive Offer Private-label brands drive loyalty and raise c-stores’ image for fair prices.

36 Designing

New Builds Maverik and MAPCO show how fresh store concepts help connect customers with their brands.

44 Full Speed Ahead Find inspiration at the 2022 NACS Show.

52 Redefining

the Forecourt

On the cover: Evannovostro and TSV Creative/Shutterstock. This page: Jag_cz/Shutterstock

A Q&A with Invenco

60 Mutual Goals

54 Beverage Boosters

Energy and sports drinks are thriving, thanks to new products, BFY offerings.

A Q&A with Advantage Solutions

62 Race to the Future NACS Convenience Summit Europe speakers shared creative ways to tackle pressing problems and set retailers up for long-term success.

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.

NACS AUGUST 2022 1

ONTENTS NACS / AUGUST 2022

DEPARTMENTS 6 From the Editor 8 The Big Question 10 NACS News 18 Convenience Cares 20 Inside Washington

Joining with like-minded groups helps amplify our voice in Washington.

28 Ideas 2 Go

In just five years, Stone Ridge Station has built a loyal and diverse following.

72 Cool New Products 76 Gas Station Gourmet

The “modern-day Golden Girls” behind this c-store are passionate about charcuterie boards and fresh sandwiches.

78 Category Close-Up

Driven by seasonal flavors and innovative combinations, consumers are returning to packaged sweet snacks.

IT’S A FACT

45.44%

84 By the Numbers

The gross margin for the packaged sweet snacks category in 2021.

PLEASE RECYCLE THIS MAGAZINE 2 AUGUST 2022 convenience.org

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

Lew Robertson/Getty Images

CATEGORY CLOSE-UP PAGE 78

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Where is your next big idea coming from?

With a NACS membership, you’ll network with the best and the brightest of the convenience industry.

With leading retailers, and the suppliers and manufacturers of products known and loved the world over.

EDITORIAL

NACS BOARD OF DIRECTORS

Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org

CHAIR: Jared Scheeler, The Hub Convenience Stores Inc.

Lisa King Managing Editor (703) 518-4281 lking@convenience.org Sara Counihan Contributing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Sarah Hamaker, Al Hebert, Pat Pape, Renee Pas DESIGN Imagination www.imaginepub.com

See Why NACS Matters.

PAST CHAIRMEN: Julie Jackowski, formerly Casey’s General Stores Inc.; Kevin Smartt, TXB MEMBERS: Chris Bambury, Bambury Inc.; Frederick Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; Chris Coborn, Coborn’s Inc. Little Dukes; George Fournier, EG America LLC

SUPPLIER BOARD REPRESENTATIVES: Brent Cotten, The Hershey Company; Kevin Farley, GSP STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

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

PUBLISHING

convenience.org/membership

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Varish Goyal, Loop Neighborhood Markets; Brian Hannasch, Alimentation Couche-Tard Inc.; Chuck Maggelet, Maverik Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store; Don Rhoads, The Convenience Group LLC

Terry Gallagher, Gasamat Oil/Smoker Friendly; Anne Gauthier, St. Romain Oil Company LLC; Douglas S. Haugh, Parkland Fuel Corp.; Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Jigar Patel, Hari 1 LLC, dba Fish River Food Mart; Elizabeth Pierce, Applegreen PLC; Glenn M. Plumby, 7-Eleven Inc.; Robert Razowsky, Rmarts LLC; Richard Wood III, Wawa Inc.

Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org Rose Johnson Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

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

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

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies.

Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2022 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

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

C-stores across the country are buying in.

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

500+ member farmers throughout the Southeast

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

All products made in USA & 100% guaranteed

Robust Partnerships

A Cut Above the Rest

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

Premier products use only top-end tobacco blends.

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

• Partners with top national and regional retail chains

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

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

Contact PremierManufacturing today! www.gopremier.com/contact

UP FRONT FROM THE EDITOR

Surprise Me

M

idsummer found me in Florida for a dance competition with my teenage daughter, and our first stop after the Orlando airport was Wawa on Narcoossee Road to grab a hoagie and a panini sandwich and stock up on bananas, water and salty snacks. We tried the self-checkout, and general manager Luis kindly stepped in unprompted to bag our purchase, which surprised and delighted me since we’d chosen the do-it-yourself route. Luis personalized the service for us.

Contrast our Wawa experience with my first time shopping at Amazon Fresh in Fairfax, Virginia, just the week before.

This is one of Amazon’s new grocery stores with Just Walk Out technology.

From scanning my Amazon app to enter the store to leaving with the groceries, the experience was sterile. No glitches, just impersonal. My husband likened the store to a warehouse for grocery fulfillment. In the aisles, we encountered numerous Amazon Fresh employees busily picking items from the shelves for digital orders, but no one made us feel as welcome as Luis at Wawa Store No. 5174.

My go-to bottled drink at Wawa is Wawa Peach Tea, and when I’m at 7-Eleven, it’s 7-Select Cold Pressed Clean & Green Juice. I sometimes go to these c-stores, which are the dominant chains in my area, just for their own-brand goods. As our cover story, “An Exclusive Offer,” explores, private label has real sticking power. From enhancing margins to sidestepping supply-chain issues to building loyalty, private label is a compelling business move for retailers.

Sports drinks and energy drinks are a staple in my household, and we’ve been happy to find some better-for-you options with low sugar and added vitamins.

That’s on trend as we cover in “Beverage Boosters.”

6 AUGUST 2022 convenience.org

Just do it yourself: I explored an Amazon Fresh store in Virginia and tried Wawa’s selfcheckout in Florida.

In “Designing New Builds,” see how Maverik and MAPCO are uniting architecture and customer experience to create welcoming new spaces with a sense of adventure and modern flare.

Finally, I invite you to carve out time to read our coverage of NACS Convenience Summit Europe, which took place at the start of the summer in Berlin, Germany. It’s one of the most impactful future-forward NACS events I have attended. Think mobility, quick commerce and ESG. Soak up the final weeks of summer, my friends.

Kim Stewart, Editor-In-Chief

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UP FRONT THE BIG QUESTION

Q: How does Yesway leverage private-label goods to build brand loyalty and drive traffic inside the store?

Private-label products are one of the strategic brand drivers for Yesway.

We offer over 300 SKUs across several categories that capture customers’ attention. We go to market with a portfolio approach under the Allsup’s and Yesway brands. Our objective is to leverage private label to deliver quality, unique experiences and value to our consumers.

We position our own brands as good, better and best in many categories. Good is typically as good as national brands but at a compelling value. Better and best-tiered products tend to be distinct from national and regional brands in flavor, texture or some desired attribute, yet still deliver the everyday value that customers seek.

Allsup’s and Yesway branded products are sold within each banner in a reciprocal manner.

Allsup’s bread, tortillas, milk, eggs and world-famous burrito food program are reliable staples that engender loyalty. Yesway tends to focus on premium immediate consumption needs.

We worked with our suppliers and wholesale network to ensure we sell Allsup’s branded products in Yesway, and Yesway branded products in Allsup’s stores. This portfolio approach helps us position products optimally to 8 AUGUST 2022 convenience.org

 Derek Gaskins, Chief Marketing Officer, Yesway

drive profitability. Our efforts have increasingly resulted in our own brands becoming customer destinations, giving us a solid foundation for inside sales growth.

As a core pillar of our strategy, we promote private label extensively. We use member pricing through our Yesway Rewards and Allsup’s Rewards loyalty programs, digital sampling to reward our best customers with

new private-label items first and creative combos and discountpriced multiples to drive growth.

We also have extended our own brands beyond our brick-andmortar stores and sell branded apparel and private-label products online direct to consumers. The success of our program has been compelling. And in these inflationary times, we rely on own brands even more to establish loyalty and drive value.

UP FRONT NACS NEWS

Data Is Power NACS has released the NACS State of the Industry Report® of 2021 Data— the convenience and fuel retailing industry’s premier benchmarking tool and the most comprehensive collection of data and trends in the industry.

“Last year, our industry emerged from a disruptive and uncertain 2020 and transformed to meet customers where they were, resulting in an impressive 28.7% increase in total sales

10 AUGUST 2022 convenience.org

year over year,” said Lori Buss Stillman, NACS vice president of research. “As our industry continues to evolve, the NACS State of the Industry Report is an indispensable tool for retailers, offering exclusive industry information not available anywhere else and supporting sustainable and profitable growth.”

For more than 50 years, NACS has released the State of the Industry Report, fueled by data submitted from companies participating in the annual NACS State of the Industry survey.

This year, more than 150 member companies submitted their financial, operational and category data.

In 2020, convenience retailers played essential roles in their communities during the COVID-19 pandemic, and while the world moved on to 2021, convenience retailers quickly realized that the pandemic was and is still impacting operations, along with new challenges.

“The financial and operational performance results in the industry were still remarkable following an equally noteworthy performance in 2020. These results are a testament to the agility of convenience operators that were able to adapt and adjust to the challenges 2021 placed before them,” the report states.

In 2021, the industry saw $705.7 billion in total sales and $277.9 billion in inside sales, fueled by an 18.2% increase in foodservice sales.

Don’t miss out on this essential tool for best-in-class retailers who are disciplined in leveraging the performance tracking and benchmarking practices NACS enables.

NACS members can purchase the report for $499, and once bought, purchasers will receive a digital license for the report. Order access at www. convenience.org/SOIreport.

Rost-9D/Getty Images

The NACS State of the Industry Report is the industry’s premier benchmarking tool.

From the Store on Main, to the Nationwide Chain, McLane Has You Covered

For more than 127 years, McLane has been building our nationwide distribution network to fulfill the needs of businesses of all sizes. Whether you’re a single store, an emerging chain, or a nationwide operation, our world-class infrastructure, unrivaled buying power, and proven technology can be utilized to diversify your offerings and grow your business.

To learn more about McLane’s solutions for businesses of all sizes, visit mclanegrocery.com

FOODSERVICE

MERCHANDISING

PRIVATE LABEL

© 2022 McLane Company, Inc. All rights reserved.

TECHNOLOGY

UP FRONT NACS NEWS

Environmental, social and governance (ESG) reporting is quickly moving from a voluntary corporate public relations tool to a regulated B2B communications prerequisite. To fully understand the drivers behind ESG planning and reporting, the Fuels Institute published a white paper that provides a history and outlook on ESG to help guide businesses.

Because ESG reporting is intended to provide business risk information (including climate change abatement approaches) to investors and boards, the Securities and Exchange Commission (SEC) recently proposed rules to govern ESG and provide some needed guidance.

Even before this proposal, however, financial industry stakeholders were increasing their reliance on ESG principles when making investment and loan underwriting decisions.

12 AUGUST 2022 convenience.org

Under the proposed rules, phased-in requirements will put new reporting requirements directly on publicly traded companies. In a surprise move, the SEC not only requires these companies to provide their direct CO2 emissions (Scope 1), but also includes the reporting of all indirect emissions (Scope 3).

This will require associated companies (public and private) to report emissions to the publicly held SEC reporting company. As written, ESG requirements will touch every organization that is in the supply chain.

SEC requirements are likely to impact the industry as early as 2023. If the SEC rules are delayed, large publicly traded companies have indicated that they will move forward regardless.

enot-poloskun/Getty Images

Fuels Institute Offers ESG Resources

NACS Wins 2 EXCEL Awards Separately, ESG Integrity, a Fuels Institute program, and the National Association of Fleet Managers (NAFA) announced a partnership to assist the fuels and transportation industries with meeting the growing demand for ESG planning and reporting.

This partnership will provide guidance and significantly reduce costs for fleets while yielding final ESG reports with Scope 1, 2 and 3 emissions modeling and reporting. NAFA will closely collaborate with the ESG Integrity team to create a program to help educate and train fleet owners, operators and managers on how best to address their ESG requirements.

Download “The Case for Developing an ESG Plan” and learn more about ESG Integrity at www.fuelsinstitute.org/ Environment-Social-GovernanceESG.

The Software & Information Industry Association in June recognized NACS with two EXCEL Awards during the 42nd Annual AM&P Network awards gala.

NACS won a Gold EXCEL Award for its single blog post “Does the President Control Gas Prices?” The Convenience Corner blog entry has amassed more than 252,000 pageviews since it was published February 3, 2021, and is the most visited page at convenience.org aside from the homepage (Read the post at www.convenience. org/media/conveniencecorner.)

NACS won a Silver EXCEL Award for the Ideas 2 Go video entry “Weigel’s

Community Involvement.” The winning video shares how Weigel’s c-stores are changing lives via its partnership with Smoky Mountain Service Dogs, which works to enhance the physical and psychological quality of life for wounded veterans and their families with a mobility assistance service dog. (Watch the video at www.convenience.org/Media/ Ideas2Go.) The EXCEL Awards are the largest recognizing excellence and leadership in association media, publishing, marketing and communication. In addition to 73 gold winners, the AM&P Network named 75 silver and 70 bronze winners.

enot-poloskun/Getty Images

Calendar of Events OCTOBER NACS Show October 01–04 | Las Vegas Convention Center | Las Vegas, NV

NACS Women’s Leadership Program at Yale November 13–18 | Yale School of Management | New Haven, CT

NACS Convenience Summit Asia February 28–March 02 | Waldorf Astoria Bangkok | Bangkok, Thailand

NOVEMBER NACS Innovation Leadership Program at MIT November 06–11 | MIT Sloan School of Management | Cambridge, MA

FEBRUARY NACS Leadership Forum February 08–10 | Eden Roc | Miami Beach, FL

MARCH NACS Day on the Hill March 07–08 | Washington, D.C.

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

NACS AUGUST 2022 13

UP FRONT NACS NEWS

New Members NACS welcomes the following companies that joined the association in May 2022. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting www.convenience.org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAIL MEMBERS

NEW SUPPLIER MEMBERS

Crestmoor Auto San Bruno, CA

365 Retail Markets Troy, MI www.365retailmarkets.com

Clobotics Corporation Bellevue, WA www.clobotics.com Comcast Business Philadelphia, PA www.business.comcast.com

99BOTTLES LLC Winter Park, FL www.ninety-ninebottles.com

Del Real Foods Irvine, CA www.delrealfoods.com

Beast Cookie Company Chatsworth, CA www.beastenergycookie.com

Deutsch Family Wine & Spirits Dallas, GA www.deutschfamily.com

BIOLO Kansas City, MO www.biolo.com

dSd Partners North Chesterfield, VA www.dsdpartners.biz

Blazy Susan Denver, CO www.blazysusan.com

DTN Burnsville, MN www.dtn.com

Blue Square Brooklyn, NY www.bluesquare.digital

Flybuy by Radius Networks Washington, DC www.flybuy.com

BrainBox AI US LLC Annapolis, MD www.brainboxai.com

Grecian Delight Kronos Elk Grove Village, IL www.gdkfoods.com

Brand Vault 360˚ Sherwood Forest, CA www.brandvault360.com

GridPoint Arlington, VA www.gridpoint.com

BWI Inc. Westlake Village, CA www.bwi-imports.com

Hatcheri Foods San Leandro, CA www.hatcheri.com

Cheers Houston, TX www.cheershealth.com

Hemptown USA West Hollywood, CA www.hemptownnaturals.com

Fox Fuels LLC dba Stop N Save Food and Gas LLC Houston, TX Glenn’s True Value Lincoln, NE www.glennstruevalue.com Kenmare Farmers Union Oil Co. Kenmare, ND www.kenmarefarmersunion.com Mass Equities C and G Santa Monica, CA www.masseq.com North Country Market Thendara, NY wwww.northcountrymarket.net Palm Canyon Petroleum Inc. Palm Desert, CA Red Top Market & Kitchen Burbank, CA www.redtopmarket.com Spit Brook Market Nashua, NH Susie Q’s Foods Thomasville, GA www.susieqsfoods.com Yatooma Oil Utica, MI Bowen & Bowen Ltd. Belize City, Belize www.bowen.bz

CIB Security Inc. Sunnyvale, CA www.usasecuritystore.com

IVIS Security Inc. Odessa, TX www.ivisecurity.com

Spar (UK) Limited HYGEIA Middlesex, United Kingdom www.spar-international.com/ country/united-kingdom

Claire’s Hoffman Estates, IL www.claires.com

KioSoft Boynton Beach, FL www.kiosoft.com KonzaWare Manhattan, KS www.konzaware.com

14 AUGUST 2022 convenience.org

Lamar Advertising Baton Rouge, LA www.lamar.com

Renfro Supply Williamsburg, KY www.renfrosupply.com

LG Electronics Colorado Springs, CO www.lge.com

Sanitarium Health Food Company Berkeley Vale, Australia www.sanitarium.com.au

Lit Brands Denver, CO www.litpipes.com McBride Sisters Wine Company Oakland, CA www.mcbridesisters.com Minor Decliner Stevensville, MD www.minordecliner.com NaceCare Solutions Mississauga, ON, CANADA www.nacecare.com NDS Signage and Branding West Palm Beach, FL www.nationaldirectsigns.com

Shiftsmart New York, NY www.shiftsmart.com Southern Coffee Services Lexington, MS www.southerncoffeeservices.com Sovereign Brands Highland Park, IL www.sovereignbrands.com Spellbound Development Group Irvine, CA www.spellboundinc.com SUPPLYPRO Atlanta, GA www.supplypro1.com

New Berlin Beverage Company LLC dba Minna New Berlin, WI www.drinkminna.com

SurgePays Bartlett, TN www.surgepays.com

PaneVita LLC Rochester, NY www.panevitafoods.com

Telebrands Fairfield, NJ www.telebrands.com

Payment24 Century City, Cape Town, South Africa www.payment24.co.za

Trinchero Family Estates Saint Helena, CA www.tfewines.com

Portion PadL Hudson, OH www.portionpadl.com POS Nation Charlotte, NC www.posnation.com

Tubeaux by Rocky Patel Naples, FL www.tubeaux.com

AVAILABLE IN 2 FOR 99¢ AND SAVE ON 2 POUCHES FOR MORE INFORMATION, CONTACT YOUR SWEDISH MATCH REPRESENTATIVE. 800-367-3677 • CUSTOMER.SERVICE@SMNA.COM

GAMECIGARS.COM © 2022 SMCI Holding, Inc.

UP FRONT NACS NEWS

Member News RETAILERS Love’s Travel Stops announced Les Thompson as chief human resources officer and vice president of human resources.

Les Thompson Thompson will provide oversight and direction for Love’s human resources operations and support overall organizational goals for growth and profitability.

The Pennsylvania Food Merchants Association presented its 2022 Food Industry Trailblazer award to Lisa Dell’Alba, Lisa Dell’Alba president and CEO of Square One Markets Inc., during its annual conference dinner in June. The award recognizes a pioneer in food and beverage retail who is willing to take risks and innovate to stay ahead in the industry. During the PFMA Annual Conference Board of Directors meeting, Dell’Alba was named chair of the board. She previously served as vice chair.

She also serves as the vice chair of member services on the NACS Board of Directors and is a member of the board of directors for the TEAM Pennsylvania Foundation.

Sri Donthi has joined the board of directors at Casey’s.

Donthi has over 25 years of experience leading Sri Donthi information technology teams in the retail, consumer products and technology industries. Donthi currently serves as executive vice president and chief technology officer at Advance Auto Parts Inc.

16 AUGUST 2022 convenience.org

Enmarket announced Jeannie W. Amerson as vice president of marketing.

Among some of Jeannie W. Amerson’s industry Amerson honors are Best Loyalty Program, Top Technology Implementation Award and being named a “Rising Star” in 2014.

Amerson is also a member of the Network of Executive Women.

SUPPLIERS

Jeff McMahon

Michael Cayo

Mallory Klotz

Alto-Shaam announced enhancements to its teams. Jeff McMahon has been promoted to senior director of product management and culinary.

Michael Cayo was promoted to product and pricing manager, where he will lead product management responsibilities.

Mallory Klotz was promoted to national accounts’ experience lead, responsible for chain account maintenance, equipment demos and training.

Tom Rogers has retired from S. Abraham & Sons Inc., which he joined in 1998.

Rogers was most recently regional Tom Rogers vice president for Ohio, Kentucky, West Virginia and Pennsylvania, and an active member in the Ohio

Petroleum Marketers Association, Ohio Wholesale Association, OACS and Kentucky Petroleum Marketers Association.

KUDOS

Fresh Del Monte, in collaboration with Jewel-Osco, broke a world record for the world’s largest fruit display in Westmont, Illinois.

Constructed entirely of Del Monte bananas, the display—which took three days to create and measured 118 feet wide by 11 feet high— weighed exactly 77,365.9 pounds and included about 211,200 bananas (40 pallets/1,920 cases of bananas). An official Guiness World Records judge was on site to verify and confirm the new record.

Following the record break, the bananas were given away to customers, with the remaining then donated to the Northern Illinois Food Bank, a member of Feeding America, serving communities in 13 surrounding counties.

The Hershey Company for the 10th year in a row is an honoree of The Civic 50 by Points of Light, the world’s largest nonprofit dedicated to accelerating people-powered change. Hershey has made this list since its inception, and this is the second consecutive year that Points of Light named the company as the Consumer Staples Sector Leader. Throughout 2021, Hershey employees volunteered more than 117,000 hours, and the company donated nearly $15 million in cash and products globally. This year, the company integrated social impact with its brands through Hershey’s CelebrateSHE campaign with nonprofit partner Girls on the Run, as well as the ongoing Kit Kat and Hershey’s Beat of the Future campaign with nonprofit partner Memphis Music Initiative.

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CONVENIENCE CARES

QuickChek Helps Fight Food Insecurity Q uickChek employees from its corporate headquarters, support center in Whitehouse Station, N.J., and local store team members picked peaches at America’s Grow-a-Row farm in Pittstown, N.J., and donated the fruit to those in need.

The trees the volunteers thinned will produce roughly 21,000 pounds of peaches, which is the equivalent of 84,000 servings of fruit.

“We could not have accomplished this without the volunteers from QuickChek,” said America’s Grow-aRow Programming Associate Erica Stevenson. “We appreciate their taking a few hours out of their day to help those in need and make an impact in the community.”

QuickChek’s impact will be further increased by its “Pennies for Produce” campaign in which company stores collected coins at store checkout between March 12 and June 4 to aid the Hunterdon County organization’s mission of positively impacting as many lives as possible through the planting, picking, rescuing and delivering of free fresh produce.

Customers at company stores donated $67,000 during the campaign. For each $1 raised, America’s Grow-a-Row can provide five servings of fresh produce to those struggling with food insecurity. The $67,000 raised equals 335,000 servings of fresh produce.

18 AUGUST 2022 convenience.org

“We’re proud to continue our support of America’s Grow-a-Row in their mission to fight hunger and as always, we wish to thank our team members for giving so much of themselves, and we also thank our loyal customers for their continued generosity in helping us help our neighbors,” said QuickChek Vice President of Marketing and Operations Don Leech. “We join America’s Grow-a-Row in their belief that everyone deserves fresh food for healthy living.”

In 2021, a team of volunteers harvested 26,660 pounds of cabbage at America’s Grow-a-Row, which were then distributed by the Community Food Bank of New Jersey to local area families in need during the Thanksgiving holiday.

In The Community Every year, the convenience and fuel retailing 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.

YESWAY IS UVALDE STRONG 1 Yesway said it would donate $25,000 to support families and community members affected by the mass shooting at an Uvalde elementary school in May that claimed the lives of 19 children and two teachers.

Through June 30, 2022, Yesway and Allsup’s customers were invited to make $1, $5, $10 (or larger) donations at checkout to the Uvalde Strong fundraising campaign.

“Everyone at Yesway is deeply saddened by this senseless tragedy, which hits very close to home, and we feel compelled to support our neigh1

2

SOCIAL SHARES NACS encourages retailers to share their giving-back news on social media using #ConvenienceCares.

bors in Uvalde,” said Tom Trkla, Yesway’s chairman and CEO. “Every generous donation will help us to achieve our goal of raising $50,000 for those whose lives have been irrevocably changed,” Trkla said.

ALLSUP’S HONORS TEXAS COMMUNITIES 2 To celebrate the grand opening of new stores in Friona, Hereford and Azle, Texas, Allsup’s convenience stores’ owner Yesway donated $1,250 each to the Friona Volunteer Fire Department, the Friona Police Department, the Hereford Food Pantry, the Hereford Police Department, the Azle Police Department, the Azle Fire Department and EMS, and the Azle Independent School District.

GATE FOUNDATION SUPPORTS JDRF 3 The GATE Foundation, the philanthropic arm of Jacksonville-based GATE Petroleum Company, has raised $30,000 for the Juvenile Diabetes Research Foundation.

3 Funds were raised in GATE convenience stores in Florida, Georgia, North Carolina and South Carolina

4

through the company’s semi-­ annual paper icon campaign.

Between May 1 and May 21, customers could donate $1 and sign their name on a JDRF paper icon displayed in the GATE store. Customers could also donate by rounding up their purchase to the nearest dollar.

Funds were allocated to local JDRF chapters.

“We are very grateful to GATE customers for supporting our fundraising efforts for the Juvenile Diabetes Research Foundation,” said Kathy Brady, executive director of the GATE Foundation. “Raising $30,000 in just three weeks is a testament to their generosity.”

RUTTER’S GOLF EVENT RAISES $730,000 4 Rutter’s nonprofit Rutter’s Children’s Charities raised more than $730,000 through its 20th annual charity golf outing to support Rutter’s Children’s Charities’ various giving programs and initiatives throughout 2022. The amount is the largest the nonprofit has raised at the outing since its inception.

“We’re very appreciative to Rutter’s suppliers and partners for their remarkable support of Rutter’s Children’s Charities’ 20th annual outing,” said Chris Hartman, president of Rutter’s Children’s Charities. “As always, all of their generous contributions will help benefit local children and charitable organizations throughout our communities.”

This year, the event was held at the Country Club of York, located in York, Pennsylvania, and included more than 140 different vendors, suppliers and partners. The annual twoday golf event began in 2003 and has helped Rutter’s and Rutter’s Children’s Charities raise more than $10 million to support local children’s charities in Pennsylvania, Maryland and West Virginia over the past 20 years.

NACS AUGUST 2022 19

INSIDE WASHINGTON

Coalitions Count Joining with like-minded groups helps amplify our voice in Washington.

BY PAIGE ANDERSON, ANNA BLOM, DOUG KANTOR AND JON TAETS

C Key Figures

$13.5 Billion Credit card swipe fees convenience retailers paid in 2021

$10.7 Billion Credit card swipe fees convenience retailers paid in 2020

Source: NACS State of the Industry Report of 2021 Data

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oalitions play a critical role in the policymaking arena and are a great way to build or enhance an advocacy network and use the resources of a number of groups to jointly advance a policy goal. By expanding the number of voices and influence, NACS has worked with a wide range of stakeholders and influencers over the years to make its advocacy more effective.

One of the earliest coalition efforts at NACS was related to increasing daylight saving time (DST) in 1986. NACS was part of a broad group, including retail, sports and outdoor groups, advocating for maximizing daylight hours. In 2005, NACS again was key player in the group expanding DST. NACS has strategically created, led and participated in a wide range of coalitions on many of the issues important to the convenience and fuel retailing industry ranging from fuel to food, swipe fees to supply chain issues, labor to lotteries, privacy to patent reform, and tax to antitrust issues. The NACS government relations team continually identifies issues and like-minded organizations to help advance our legislative priorities and determine the necessary level of engagement. Sometimes NACS creates coalitions or alliances as no other group exists, or the mission of an existing group doesn’t quite meet our needs. In other instances, NACS joins an existing group and adds its influence to pass or defeat a bill or amendment.

The following are some of the coalitions, partnerships and alliances that NACS is currently a part of in working on issues critical to convenience retailers.

SWIPE FEES Merchants Payments Coalition In the early 2000s, NACS started hearing from retailers about the growing amount they were being charged by the credit card industry every time a customer used plastic to pay for fuel or goods. These fees—better known as swipe fees—quickly became the second highest operating cost for the industry, and it wasn’t long before the amount paid in swipe fees exceeded pretax profit. Fees were impacting retailers of all sizes, and fuel retailers were being hit particularly hard as customers started paying more and more at the pump.

In 2005, NACS founded the Merchants Payments Coalition (MPC) to seek legislative reforms to the credit card market and relief for retailers.

standards that are less secure but beneficial to the card brands. Rolling out EMV without PIN technology was one prime example of this behavior.

The Secure Payments Partnership (SPP) was founded in 2018 to bring light to these issues and advocate for reforms. The founding members were NACS, the National Retail Federation, the National Grocers Association, the Food Industry Association and Shazam, a debit network based in Iowa.

The coalition has lobbied for a fair and open standard-setting process where all stakeholders have a voice, including retailers, smaller networks, processors, banks and consumer groups. A coalition white paper, “Payment Insecurity: How Visa and Mastercard Use Standard-Setting to Restrict Competition and Thwart Payment Innovation,” was influential in the U.S. Department of Justice filing suit to stop Visa’s planned acquisition of the payment company Plaid.

MicroStockHub/Getty Images

Learn more at www.securepaymentspartnership.com.

MPC’s membership is made up of a group of retailers, convenience stores, supermarkets, restaurants, drugstores, movie theaters, online merchants and other businesses with one common goal—bringing competition to the payments card market that will put downward pressure on swipe fees.

The biggest legislative accomplishment of MPC to date is passing debit reform, also known as the Durbin Amendment, in 2010. Debit reform set a limit on what issuing banks can charge merchants on debit transactions, and it also required two unaffiliated networks on a debit card. NACS and MPC have had to fight hard to protect these reforms, and we have been successful in staving off three attempts to delay or repeal them.

During the 117th Congress, NACS and MPC have been working diligently to get legislation introduced that would finally bring competition to the still unregulated credit card market. Our

efforts have gotten the attention of the credit card companies, which are out in full force again opposing any change to their cartel scheme. What has always made the MPC, and NACS for that matter, successful is bringing together and activating the collective voices of our retail members in these efforts.

Learn more at www.merchantspaymentscoalition.com.

SECURE PAYMENTS PARTNERSHIP The United States pays the highest swipe fees in the industrialized world.

We also have the highest fraud. Those two facts are not unrelated. When there is a duopoly like Visa and Mastercard, it can wield market power to preserve that duopoly. The card networks have done this with the standard-setting process at both EMVCo and PCI. Only the global card networks have a voting voice in the standards that affect the entire payments ecosystem, and that results in

EVs AND EV CHARGING Charge Ahead Partnership With federal and state policymakers aiming to transition our transportation system from fossil fuels to electricity, it is critical that convenience and fuel retailers work with other organizations to ensure that a competitive market exists for all transportation fuels. Retailers want to provide drivers with whatever fuel powers their vehicles. Our industry is in a unique position to provide consumers the ability to charge their EVs at our 116,000+ stores in desirable locations in every city, county and state across the nation. The current electricity market is outdated and ill-equipped to handle a competitive EV charging market. Removing barriers to private sector investment is imperative to the long-term development of EVs. The competitive forces that govern the liquid fuel marketplace benefit the consumer and should be a model for the EV charging marketplace.

To advance competition and private-sector investment, NACS helped create the Charge Ahead Partnership, a large and diverse coalition of businessNACS AUGUST 2022 21

INSIDE WASHINGTON

es, associations and individuals that share the common goal of efficiently and effectively developing a nationwide EV charging network and eliminating barriers to private-sector investment in building the needed infrastructure.

The group has been working at the state level to create a competitive electricity market for EV charging in states such as Florida, Georgia, Louisiana and Ohio. It also has engaged in a communications campaign to inform policymakers of the changes needed to achieve its goals.

Learn more at www.chargeaheadpartnership.com.

SUPPLY CHAIN The SHIP Coalition The Safer Hauling & Infrastructure Protection (SHIP) Coalition, also known informally as the Shippers Coalition, is focused on supply chain challenges by improving the transport of goods and services on U.S. highways and roads. A few of the issues the coalition has been working on include increasing the gross vehicle weight limit for large trucks on interstate highways, improving the hours-of-service waiver process, allowing truck drivers who are 18 to 20 years old and are appropriately trained and certified to participate in interstate commerce, and expanding financial incentives and aid for truck driver education, certification, training and recruitment programs to address the truck driver shortage. NACS has been working on these issues and identified the SHIP Coalition as a way to maximize our voice and influence on these issues. Members of the coalition include other transportation associations and food and beverage manufacturers and other retailers.

Learn more at www.shipcoalition.org.

SCORe Coalition One of the dynamics that has exacerbated supply chain disruptions over the past two years is known as the “bull whip” effect. The idea is that lack of information regarding the need for products across the supply chain leads 22 AUGUST 2022 convenience.org

to swings in which manufacturers and wholesalers cannot make or get enough product to market and then times when they get too much product to market.

The increasing uncertainty of the need for product at each step of the supply chain multiplies these problems.

The Supply Chain Optimization and Resilience (SCORe) Coalition was formed to take on this long-term problem. The coalition includes retailers, importers, wholesalers, U.S. ports, shippers and more. The coalition has worked with the Biden Administration to create a standardized data portal that the entire supply chain could use to cut down on information deficiencies that lead to supply chain stresses. While developing the portal is a long-term project, it has the potential to directly mitigate one of the most troublesome causes of recent supply chain challenges.

ANTITRUST Main Street Competition Coalition NACS is a founding member of the Main Street Competition Coalition, which formed in 2021. The coalition is made up of business trade associations whose members are often taken advantage of by certain suppliers in pricing and product availability. The coalition’s goal is to advocate for the enforcement and strengthening of the Robinson Patman Act, which prohibits price discrimination among competitors. This is behavior the convenience industry is often subjected to by nonalcoholic beverage manufacturers. So far, the coalition has garnered support from members of Congress in the form of a letter sent to the Federal Trade Commission arguing for more enforcement actions in the space.

LABOR The Critical Labor Coalition NACS is a founding member of the Critical Labor Coalition (CLC), which is made up of various industries mostly in foodservice and hospitality with a focus on finding new ways to get workers into the labor force. NACS and CLC have already worked with members of Congress on legislation to create a new employment-based immigration visa and continue to work on ways to reduce the Social Security system barriers preventing older Americans from returning to work.

CANNABIS The Coalition for Cannabis Policy, Education and Regulation NACS is the first, and so far, only retail trade association to join the Coalition for Cannabis Policy, Education and Regulation (CPEAR). CPEAR’s goal is to ensure that any federal legislation legalizing recreational marijuana use comes with responsible regulations that do not prohibit businesses from the retail or supplier markets that would be created.

The coalition has continued to educate members of Congress and their staffs about regulations that would make sense and have focused primarily on Republican offices to raise the comfort level with that type of legislation. The coalition has worked with various members of Congress on both sides of the aisle to help shape pending legislation.

Learn more at www.criticallaborcoalition.com.

Partnership to Protect Workplace Opportunity NACS joined the Partnership to Protect Workplace Opportunity (PPWO) in 2014. PPWO is focused on regulations under the Fair Labor Standards Act, most notably the overtime exemption regulations. The coalition is made up of a wide variety of businesses and business associations interested in reasonable overtime rules.

Learn more at www.protectingopportunity.org.

Learn more at www.mainstreetcompetition.com.

Learn more at www.cpear.org.

DATA PRIVACY AND SECURITY Main Street Privacy Coalition NACS is a founding member of the Main Street Privacy Coalition, which is comprised of a broad array of national trade associations representing businesses. From retailers to realtors,

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hotels to home builders, gas stations to grocery stores, restaurants to convenience stores, the coalition is seeking federal privacy legislation that makes all businesses responsible for their own conduct, preserves customer benefit and loyalty programs, creates uniform federal standards, ensures all industry sectors that handle consumer personal information have equivalent legal obligations to protect consumers’ privacy under the law and does not include any exemptions. This summer, House and Senate committees are tackling privacy legislation, and the coalition is working closely to ensure these principles are included in any bill.

Learn more at www.mainstreetprivacy.com.

FOODSERVICE Food & Beverage Issue Alliance The Food & Beverage Issue Alliance (FBIA) is made up of various trade associations and businesses in the foodservice industry including retailers and supplier companies. The alliance goals are broad: Work with federal regulators, largely the Food and Drug Administration (FDA), to help influence regulations to ensure that they are not unduly burdensome to the business community. FBIA hosts quarterly conference calls with senior FDA staff to help share the industries’ thoughts and concerns regarding pending regulations. FBIA members also helped lead comment campaigns on pending FDA regulatory matters in the food space.

Learn more at www.feedingus.org.

TAXES LIFO Coalition LIFO accounting is widely used in the convenience industry, and the goal of this coalition is to preserve its legality. The larger coalition is made up of businesses and trade associations representing a wide swath of the economy who use the LIFO accounting method to help manage their inventory and tax liabilities. To date, the coalition has beaten back numerous attempts to not only repeal LIFO 24 AUGUST 2022 convenience.org

accounting but also to retroactively tax the so-called LIFO reserves.

Learn more at www.savelifo.org.

Family Business Estate Tax Coalition The Family Business Estate Tax Coalition is made up of family-owned businesses with an interest in reducing or eliminating the “death tax” that often costs families thousands of dollars when a family business is passed from one generation to the next. Many NACS members are family businesses and would see a significant benefit in passing on the family business to new generations if the death tax were eliminated or reduced. The coalition has been successful in at least keeping the death tax provisions where they are post TJCA and helped prevent efforts to increase the rates or thresholds in recent years.

Learn more at https://estatetaxrelief.com.

S-Corp Association With many NACS members’ businesses organized under subchapter S of the Internal Revenue Code, NACS joined the S-Corp Association. It is a coalition made up of businesses of all sizes, which are organized primarily as pass-through entities. The coalition’s goal is to maintain at least close to equivalent tax treatment of S-Corp companies as compared to C-Corp companies. Much of the recent focus has been on the 199(A) deduction included in the TCJA, which created the business income deduction for individuals who own their own businesses. Work continues to make that deduction permanent. The coalition has successfully recruited members of Congress to introduce legislation to make the 199(A) deduction permanent.

Learn more at www.s-corp.org.

TRANSPORTATION Alliance for Toll-Free Interstates NACS is a member of the Alliance for Toll-Free Interstates, formed to educate the public and policymakers about the

negative impact that tolling existing interstates has on businesses located off these highways. During the infrastructure bill debate, the alliance defeated attempts to expand tolling on existing federal highways.

Learn more at www.tollfreeinterstates.com.

Partnership to Save Highway Communities NACS is a longstanding member of the Partnership to Save Highway Communities, which advocates against attempts to bring commercial activity to interstate rest areas. The coalition includes a diverse array of business groups, municipal groups and the National Federation for the Blind. All of these groups recognize that commercializing interstate rest areas would hurt existing businesses built at interstate exits, undercut local tax bases and undermine vending businesses operated at rest stops by blind entrepreneurs. The coalition has defeated federal efforts to relax the existing federal ban on rest-stop commercialization several times, most recently in the context of efforts to put EV chargers at rest stops through the bipartisan infrastructure bill passed in 2021.

Learn more at www.jobsnextexit.com.

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

Anna Ready Blom is NACS director of government relations.

She can be reached at ablom@convenience.org.

Doug Kantor is NACS general counsel. He can be reached at dkantor@ convenience.org.

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

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INSIDE WASHINGTON NACSPAC DONORS

ONE VOICE This month, NACS talks to

Jonathan Shaer, executive director, New England Convenience Store & Energy Marketers Association What role in the community do you think convenience stores should play?

Convenience stores should be considered the center of dependability in the community. They are expected to be open at odd hours, have the products people need and provide efficient service so customers can be on their way. I think we deliver exceptionally on these promises.

What does NACS political engagement mean to you and what benefits have you experienced from being politically engaged?

The work of the NACS Government Relations team is so important. Not only do they influence policy in Washington, D.C., but they provide valuable resources to association executives across the country to help advocate for the best interests of retailers at the state level. I have personally cited NACS in countless pieces of testimony over the years. If you aren’t at least getting NACS Daily or periodically checking the advocacy page on convenience.org, then you’re missing the boat.

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

Because I have personally spent hundreds of hours defending the flavored tobacco category for our retailers, I am moderately concerned about the FDA’s proposed rulemaking for menthol cigarettes and characterizing flavors in cigars. I would encourage every retailer to write to the FDA in opposition.

More broadly, I worry about regulatory mandates that are devoid of specific plans to achieve their goals and what that means for our industry. I despise sloppy policy.

What c-store product could you not live without?

I’ve been known to pick up an afternoon bag of peanut M&M’s and a FIJI water!

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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 June 1-30, 2022, are: Richard W. Abel Jaco Oil Company Riaz Ahmad NSR Petro Services LLC Ian Davis C.H. Guenther and Son Jimmy Frangis PDI Matthew Hanson Black Buffalo Inc. Scott Hunt Hunt Brothers Pizza Thomas J. Jamieson Jaco Oil Company Kevin Kraft FIFCO USA Peter D. Krueger Nevada Petroleum Marketers & Convenience Store Association Jeff Lenard National Association of Convenience Stores Gus Olympidis Family Express Corporation Jonathan Polonsky Plaid Pantries Inc. Paul D. Reid Reid Petroleum Corporation Randall Sheetz Sheetz Inc. Joseph Vonder Haar iSee Store Innovations LLC

IDEAS 2 GO

Name of company: Stone Ridge Station Date founded: 2017 # of stores: 1 Website: www.facebook.com/ Stone-Ridge-Station-Inc1691060671203001/

Starting From Scratch

In just five years, Stone Ridge Station has built a loyal and diverse following.

BY SARAH HAMAKER

The location came first for Stone Ridge Station in Santa Claus, Indiana. “The four owners decided this would be a good place for a convenience store, since it’s right off a highway and down the road from Holiday World amusement park,” said Joyce Fetter, general manager, Stone Ridge Station. Keith Hedinger, Eric Kress and father and son Tim and Nick Waninger bought the land and built the store and forecourt with fuel pumps and Tesla chargers.

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A NEW BUILD The owners wanted to create an inviting place through the service, products and décor. Warm wood tones and a cathedral ceiling give the place a rustic and welcoming feel. “The Stone Ridge Station emblem is in burnt wood and contributes to the pastoral atmosphere,” Fetter said.

From its inception, Stone Ridge Station’s focus has been on fresh foodservice. The store invites customers to linger over a meal in its outdoor eating space with a roof and picnic tables, as well as an indoor dining area. A coffee bar and slushie machine provide liquid refreshment. In the grab-and-go cooler, items such as yogurt parfaits, fruit cups, salads and cold sandwiches are made in house daily.

Stone Ridge Station sells Noble Roman’s pizza and Charley Biggs Chicken, in addition to its own burgers and plate lunches. “We offer roast beef, meatloaf, bratwurst and fried shrimp entrees with sides of mashed potatoes and au gratin potatoes, and desserts like cobbler,” she said. “We sell a lot of plate lunches for eat in or takeout.”

Beyond foodservice, the merchandise mix has the usual convenience store fare of packaged beverages, snacks and candy. “But we also carry a lot of camping supplies because Lake Rudolph and Lincoln State Park are nearby,” Fetter said. The store has a large stock of bug spray, charcoal, RV toilet paper and other supplies, bait and fishing equipment, firewood and, of course, s’more fixings and campfire forks.

The store also carries a big supply of automotive products and has an extensive selection of frozen foods, from half-gallon ice cream to frozen pizzas to dinners. Stone Ridge Station stocks some branded merchandise, such as can coolers and lighters, but no apparel or caps.

FRIENDLY SERVICE One of the things that makes a trip to Stone Ridge Station stand out is the welcoming employees. “We put our extra-friendly employees to work at the registers and have a core group of workers who have been here a long time and who are really good with customers,” Fetter said. “I watch how our employees interact with customers, calling the regulars by name. There’s a group of older guys who come in here every day of the week to have coffee and talk, which shows how comfortable our store is with the locals.”

With the store having a lot of land surrounding it, there’s room for semis to park in the back. “We have truckers who come through, and they can stay for a bit because we have parking for their trucks,” she said.

Fetter is meticulous about keeping the place clean. “I’m a little OCD about cleaning, and we always get compliments on how sparkling the store is—that makes me feel good,” she said.

“Customers know they can stop here to use the restroom or pick up something to eat because it’s a very clean place.”

The store has several billboards along the highway, as well as an active presence on Facebook. “With the amusement park down the road and the lake close by, we’re always busy,” she said.

Overall, Fetter hopes customers leave Stone Ridge Station “with a happy feeling they got great service in a clean, comfortable environment.

Our employees know customers come first, and that’s how we want them to experience our store.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

BRIGHT IDEAS With supply chain crunches and soaring costs on everything from fuel to food, smart category management is essential for retailers. “We’re not going to make any money if we don’t have a handle on what we’re paying for our products,” said Joyce Fetter, general manager at Stone Ridge Station in Santa Clause, Indiana. “The prices from suppliers are rising so fast, if we don’t adjust the price tags, we’ll lose money.”

With deliveries coming in every day from different wholesalers and suppliers, Fetter has made it a practice to review each invoice to make sure she knows whether a price adjustment is needed on a particular product line. “It’s hard to keep up, but I’ve found when I don’t, then our bottom line isn’t as healthy as we’d like,” she said.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow.

To see videos of the c-stores we profiled in 2021 and earlier, go to www.convenience.org/Ideas2Go. NACS AUGUST 2022 29

30 AUGUST 2022 convenience.org

An

Exclusive Offer A

Private-label brands drive loyalty and raise c-stores’ image for fair prices.

Evannovostro and TSV Creative/Shutterstock

BY TERRI ALLAN

t Nouria Energy stores in New England, sales of a product line introduced just four years ago are already outpacing center-store branded items. According to Kristine Modugno, director of category management at the 170-unit convenience store chain, year-over-year sales of the company’s private-label My Nouria line are growing at a double-digit rate, driven by new flavors, enhanced packaging and customer demand for quality items at a value price. While My Nouria offerings cross a variety of categories, snack items like the All-Dressed rippled potato chips, blueberry-covered pretzels and chocolate bars are among the products which customers particularly crave.

In Texas, meanwhile, sales of TXB-branded products reached more than $1 million last year, Benjamin Hoffmeyer, vice president, marketing and merchandising, TXB, reported. And with new private-label items scheduled to launch this year, sales could double in 2022, he said.

“Many of our products are growing at a 50% to 60% rate thanks to their value proposition,” he noted. “Their quality is equal or better to that of national brands, while the price per ounce to the consumer is better than national labels.” And for TXB, with about 50 stores in Texas and Oklahoma, penny profits on its own-label products are improved versus that of leading brands.

TXB and Nouria are among a small but growing number of c-stores committed to advancing offerings and overall sales of private-label products. While largely the signature of grocery, drug and big-box stores, exclusive labels are emerging in the c-store channel despite some of the unique hurdles they bring to small footprint and fragmented operations. Convenience retailers already marketing private-label brands, along with vendors and channel advisers, see continued potential for the products, as well as the opportunity for the exclusive labels to help build c-stores’ reputation for fair prices.

NACS AUGUST 2022 31

Private label isn’t just a value product at a cheap price anymore.”

BOOMING BUSINESS Private labels are a big business. According to NielsenIQ, private labels accounted for nearly 19% of total sales across U.S. grocery and drugstores, mass merchandisers and select dollar stores, warehouse clubs and military commissaries in 2021. While those sales represented a slight decline from 2020—when pandemic-driven buying resulted in a surge for private-label and branded products—today’s inflationary woes are expected to benefit store brands.

Private-label sales in c-stores, however, are dramatically underdeveloped compared to other outlets. According to Jason Zelinski, client director, convenience and growth accounts at NielsenIQ, private-label products make up only 2.4% of total sales in c-stores.

But the good news is that sales in the convenience channel are growing at a fast clip—up 19% last year, Zelinski said—easily outpacing trends in other channels. Todd Maute, partner at CBX, which helps retailers develop private-label portfolios and counts Wawa among its clients, explained that the fragmented nature of c-stores is a big reason that the channel lags others when it comes to store brands. “With more than half of all c-stores independently owned, it’s difficult for those stores to meet the minimum volume requirement from manufacturers for private-label products,” he said. The absence of private labels at so many c-stores is unfortunate, Maute continued. “They’ve become expected in high-volume categories and help drive loyalty to stores.”

The pandemic, supply chain pressures and rising inflation have all helped increase demand for private-label merchandise. But they’ve also increased constraints on the manufacturing and distribution of store

Wawa

Nouria

32 AUGUST 2022 convenience.org

Private-label products make up only 2.4% of total sales in c-stores.

brands. Most recently, “the manufacturing community has been limiting the amount of private labels they’re producing,” Maute noted. “Some aren’t doing private labels at all.” Indeed, both Modugno and Hoffmeyer reported that their stores experienced shortages from private-label vendors earlier this year, but those constraints have eased in recent months.

LOYALTY DRIVER One of the biggest benefits of private-label products for c-stores is the customer loyalty they help develop. “When a c-store converts a customer to its private label, it forms an exclusive impression on the customer that the only place to get the item is their store, which can result in repeat trips and larger basket rings,” Zelinski said. Maute agreed, pointing to the reputation Wawa has earned for its exclusive coffee, which has made the retailer a destination for many consumers.

Moreover, he sees “significant opportunity for c-stores to own categories like salty snacks if their private labels are sourced properly and quality exceeds expectations. Those types of products provide the opportunity to drive loyalty.”

Enhanced margins are another asset for retailers. “Private-label brands eliminate layers of cost that national brands build into their price model for marketing and other expenses,” noted Teresa Voelter, private label director at McLane Co., whose Consumer Value Products subsidiary offers numerous nonexclusive CVP-branded private-label products to retailers. So not only do they provide savings for consumers, but “they offer a way for retailers to increase their profits and secure consumer loyalty,” she said. Hoffmeyer added that store brands can aid retailers in inventory control, particularly when out-ofstocks impact national brands, and also “help build your brand awareness and strengthen the connection with your consumers.”

Despite the advantages, private-label

programs come with a host of challenges for c-stores. Minimum volume requirements from suppliers can make the offerings untenable for some retailers. “For small retailers, it can be difficult to hit the minimum order when working under a large contract,” said Mike Fogarty, founder and CEO of Choice Markets, an upscale c-store concept with three locations in Denver and another three on the way.

“Sourcing and design can be difficult, too,” said the retailer, whose stores offer a full line of Choice-branded prepared foods and snacks.

“They may not know how to find a manufacturer.” McLane’s Voelter noted that for c-stores not large enough to create their own brand, the CVP products can fill in. “They give retailers a strong offering that increases profit margins,” she said. Maute recommended that small c-store chains form co-ops for better buying power or work with local manufacturers on private-label products.

Space constraints are another hurdle.

“Space in a c-store is the tightest of any channel, so each spot must be justified,” noted Zelinski. Nouria’s Modugno concurred. “With c-stores’ limited SKU environment and the important role that the national brands play, you need to have a solid strategy with your total assortment and the role of private brands in each category,” she said. With no national marketing support to rely on, Hoffmeyer added that c-stores need to ensure they can fund marketing efforts for their own brands.

EYE ON SNACKS Among the merchandise categories where c-stores have ventured with their own labels are salty snacks, packaged sweet snacks, packaged beverages, prepared foods and automotive supplies. According to Zelinski, salty snacks and packaged sweet snacks show the biggest opportunity. In all channels, private-label salty snacks comprise 12% of category sales, but in c-stores, they only account for 2% of category sales, he noted.

Private-label sweet snacks, meanwhile, contribute 28% to category sales across all outlets but only 8% of c-store category sales.

Nouria and TXB are looking to leverage those opportunities, as the New England chain recently expanded the My Nouria portfolio into packaged baked goods, while the Texas operator could add chips in the next year or two, Hoffmeyer said. TXB-branded

TXB

Marketing Matters Like any other in-store merchandise, private-label products require marketing and merchandising support. Due to their high-margin opportunity, that support is critical.

“It’s a different retail environment than in the past,” said Todd Maute, partner at CBX. “Don’t put them on the bottom shelf.”

At Choice Markets, own-brand items are merchandised just inside the front door on “prominent fixtures,” to maximize exposure, said Mike Fogarty, founder and CEO of Choice Markets. At Nouria Energy stores, “we dedicate primary and endcap space in our stores for the Nouria brand,” Kristine Modugno, director of category management, reported, “and we run monthly promotions, as well as every day twofer deals to drive trial.”

TXB pulls out all the stops when it comes to promoting its own brands. In addition to digital support, such as coupons, loyalty and app tie-ins, the Texas chain leverages floor displays and beverage vault merchandising, Benjamin Hoffmeyer, vice president, marketing and merchandising, TXB, noted. “We also offer everyday multibuys to boost trial of different flavors and to build volume, which helps reduce production costs,” he said. Looking ahead, TXB plans to take support of its private-label brands full circle by partnering them with national brands, Hoffmeyer revealed, such as TXB water with Snickers and Red Bull promotions.

Private-label brands eliminate layers of cost that national brands build into their price model for marketing and other expenses.” packaged beverages, meanwhile, have been profitable for the company, he reported.

“We have better control upstream on cost of goods,” as compared to national brands, “and since TXB products are made in Texas, we save a ton on freight, which is key with heavy beverage cases,” the retailer noted. Mineral water, sports drinks and iced coffee drinks are also on the chain’s radar, he added.

At Choice Markets, prepared foods are produced at a commissary kitchen to the company’s specifications, while private-label nuts come from national suppliers, Fogarty said.

NACS AUGUST 2022 33

Deli salads and prepared meals are among the Choice brand’s most popular items, the retailer said, as “our customers trust our brand.

They know it for its quality and that there’s thought behind the sourcing.” Fogarty added that more Choice-branded products are in the works and could include pastas, dressings, chips and dips.

Catering to Truckers While consumable products are among the most common private-label offerings in c-stores, Love’s Travel Stops makes a targeted effort to provide its own line of products for its large pool of professional drivers.

“We like to say that ‘Love’s Mobile to Go’ zone is like the Apple Store or Best Buy of the highway, and it shows by how popular those items are among all customers,” said Casey Creegan, manager of merchandising at the 600-location travel stop network. Merchandise ranges from items that appeal to casual drivers, such as phone chargers and headphones, to those of interest to truck drivers, like GPS devices and headsets. Additional products offered as part of the “Mobile to Go” set include the Portage line of travel bags and clothing and the Love’s-branded auto fluids line.

Love’s-branded snacks and drinks—such as bottled water, beef jerky and candy—are also popular with guests, noted Creegan, and products like sweet and salty snacks and juices show potential.

But she added, “We see a lot of opportunity on the nonconsumable side for items that help get professional drivers and four-wheel customers back on the road quickly and safely.”

Love’s

PERCEPTION SHIFT The increased availability of quality private-label merchandise can only help to build the reputation of c-stores for offering fair prices. “Private label adds a low-priced option to convenience store shelves,” remarked Zelinski. “This plays a role in shifting consumer perception, as shoppers often believe they’re paying a higher price for convenience.” Special promotions and features on private-label merchandise propel the shift even more, Modugno said. “When guests are in our store, we’re their frame of reference for pricing, so promotions are key,” she remarked.

Research and planning are also core components of a successful private-label program.

“Be sure to do your research to offer high quality products in great packaging, with attributes that appeal to your consumer,” Voelter advised. “Private label isn’t just a value product at a cheap price anymore. The goal is to source and offer products that meet or exceed consumers’ expectations, tell a story and even make them proud to purchase.”

C-store operators already active with private labels have no plans to look back.

“Private label not only provides our channel a means to give consumers a better value proposition but also a means to further strengthen our brands’ connections with consumers,” said Hoffmeyer. “It also allows our channel to offer differentiated products to our customers and an opportunity to drive new traffic.

Private label will be a necessity for c-stores to compete with other channels who have had a head start on the private-label journey.”

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

34 AUGUST 2022 convenience.org

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36 AUGUST 2022 convenience.org

Maverik and MAPCO show how fresh store concepts help connect customers with their brands.

Youst/Getty Images

BY RENEE PAS

T

he shopper experience has always been important, but in the age of omnichannel commerce, creating a connection that resonates with today’s consumers is more challenging than ever. While it’s true that retailers need to reach consumers through digital channels, brick-and-mortar stores are still relevant, and retailers with a laser focus on an exceptional in-store shopping experience may have an edge over their competitors.

Understanding how design and ambience connect with customers offers a good starting point for how consumers experience your brand. “In the decision on where to shop, the experience now comes into play,” said Lori Mukoyama, NCIDQ, IIDA, LEED GA, design principal at Gensler, an architecture, design and planning firm.

Two convenience retailers creating conscious connections with customers through design include Maverik and MAPCO. Both chains convey brand imaging through design. For Maverik it’s a continuation of a legacy approach to design, while MAPCO’s new flagship store brings with it a more modern design that works to elevate the brand’s image.

NACS AUGUST 2022 37

Changes don’t have to come in monumental programs or packages.”

MAVERIK DEEPENS CONNECTION POINTS The design approach of Maverik—Adventure’s First Stop continues to pull customers into an immersive experience with graphics that create connections to the brand’s inherent messaging of fueling adventure. How the nearly 400-store chain tackles that graphics program has evolved over the years, said Sarah Kovac, director of architecture and engineering for Maverik. “Previously we had a one-size-fits-all graphics program that didn’t change based on region. We’ve updated that to store-specific regions and now create experiences that our guests can connect with.”

Customers see images of places they likely frequent if they live nearby or a location they just visited if they are traveling through the state. Images at the Oroville, California, store that opened in October 2021, for example, are all unique to California. In-house photographers take all the images, and stores include topographic maps specific to each state. The Oroville store closely resembles a North Salt Lake City, Utah, store built prior to that one in 2020.

TAKE NOTE:

4 RETAIL DESIGN TRENDS Want a little inspiration? Or, better yet, aspirational design-influenced goals? Looking beyond c-store design trends to examine how others are pushing boundaries can offer a new perspective. Here, Lori Mukoyama, NCIDQ, IIDA, LEED GA, design principal at Gensler, offers a view of four broader retail trends gaining traction:

When it comes to shopping experiences, consumers have a desire to connect to their favorite brands in ­ever-evolving ways. For instance, Mukoyama noted high-end clothing store lululemon offers location-specific screen prints at certain stores that can turn a purchase into an experience with a simple “aloha” added to the brand’s merchandise. In a similar vein, the Starbucks Reserve Roastery in Chicago becomes a bit of a tourist-like experience, complete with merchandise only available at those locations.

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Aluna1/Getty Images

NEW LEVELS OF CONNECTIONS

If you are in the c-store business today, you are in the food business, and that’s relevant to the design and experience.”

“We love adventure; we want everyone to have an adventure—whether it be in the physical world, digital sphere or just an aspirational adventure,” said Joey Hobson, vice president of marketing at Maverik. “Panoramic imagery in the store helps that. We spend a significant amount of time providing the adventure atmosphere in our stores; it’s critically important to our customers and our brand.”

Pyataeva Irina/Getty Images

A CURATED EXPERIENCE Larger retail stores are using storytelling more than ever to plan stores differently. For instance, maybe the entire department store is no longer visually quite as open when customers first enter. Instead, for example, metal arches might help define a smaller area, said ­M ukoyama, which would then open up to a larger department. “We’re planning stores differently,” she noted, “compressing and expanding different areas throughout a larger space.”

The imagery also creates connections between customers and staff, Hobson added.

Customers talk to store crew members about their own experiences, for example sharing that they went on a hike in an area they might spot in store photographs. “It’s an entry point into that relationship,” he said.

Newer Maverik stores feature a new lighting package that highlights the graphics and helps create a more open feel, Kovac said, and

BLEEDING LINES More than blurring retail lines, today’s iteration is more of a bleeding of the lines. For example, where IKEA houses a restaurant inside its stores, another omnichannel retailer entering the brick-and-­ mortar space is creating a crossover between food and retail, Mukoyama said. What does that look like? “More integrated,” she said, “where customers are encouraged to pick up beverages and food and take it with them as they shop.”

It creates yet another different kind of experience, she said.

MORE COLOR, MORE GREENERY Color is making a comeback, said Mukoyama, specifically warm colors with deep tones and cranberry hues. “Colors that speak to our souls,” she described it, noting the aesthetic is less about a sterile, perfectionist look. Any kind of greenery, including fake foliage, has become ultra-popular as well. “It’s about having that flow from the inside out,” she said.

NACS AUGUST 2022 39

Over the years, c-store design has become more elevated.”

40 AUGUST 2022 convenience.org

it reflects the retailer’s latest design standard.

The retailer follows set design standards and adjusts based on store size, which can range from 3,000 square feet to just under 9,000 square feet if a quick-service restaurant is included. While the chain’s proprietary BonFire food, made fresh at every Maverik every day, concept is the Maverik standard, two locations include a Dairy Queen—the first came via acquisition, while the second was a ground-up build in Elwood, Utah, in 2021.

“From a look and feel standpoint, the stores are all the same,” Kovac said, adding that Maverik is currently going through a remodel to update branding and finishings chainwide. Woodgrain finishes add to the outdoor visual, along with ceilings painted light blue to mimic the sky. Skylights bring in natural light, adding to the idea of bringing the outdoors in. Some 3D elements extend the idea further, such as artificial trees built into the architecture.

In terms of store layout, the remodel includes repositing aisles to be straight.

“We have gone back and forth with aisles— straight, then at an angle and now straight again,” she said. The straight aisles allow the retailer to pick up extra SKUs, she said and do not negatively affect shopability.

Over the years, c-store design has become more elevated, with a higher expectation in general, Kovac believes, and food has played a role in that. “Food is becoming more of a focus and the norm,” she said. “If you are in the c-store business today, you are in the food business, and that’s relevant to the design and experience.”

At Maverik that foodservice experience is the BonFire Grill, the retailer’s made-to-order concept that has grown to become a larger component of the store offering, prominently featured in select Maverik locations. Now with an open kitchen approach and more square footage dedicated to both front-ofhouse and back-of-house foodservice, food is a focal point visually as well as operationally. “We create a branding experience for food with red canopy signage and a similar branding approach [to the Adventure theme] with graphics to create an eye-dropping experience,” Kovac said. “It signals a different experience to the guest than grabbing an item from the cold case, which they can still opt to do if they want. BonFire includes a bit more theater; there is a trust you gain from customers by showing what you are doing.”

Kovac draws inspiration from looking at adjacent industries to the convenience store channel. As the c-store industry has evolved, a lot of the same trends seen in the general retail sector now come into play for c-stores, she noted, including experiential design and taking design cues from nature.

Hobson agrees, adding that the Maverik team is always looking at different retail formats from both a construction and design point of view. “We want to remain relevant and on the leading edge. Changes don’t have to come in monumental ways. They can be small and subtle,” he said.

SOMETHING DIFFERENT AT MAPCO With MAPCO’s flagship store, the company “set out to build something different,” said MAPCO CFO Keith Slater. Located in Nashville, Tennessee, the 5,600-square-foot store features an elevated design that showcases a more modern style of architecture with wide open spaces throughout the interior and plenty of natural light.

Noticeable elements that differentiate the store include taller ceilings, floor-to-roof glass on the front of the building and clean lines overall. The store reflects the “quality and experience we will continue to create for customers in the future,” Slater said. Custom murals with outdoor cues and greenery contribute to the natural ambiance.

Customers are greeted with wide open spaces from the moment they walk into the store, with higher ceiling heights adding to the feeling of openness. From a traffic-flow standpoint, when customers enter the store, they see the large coffee island first, with a Subway quick-service restaurant sitting adjacent to that. An expanded cold vault offering, complete with a beer cave and visible from the entry point, consumes much of the back of the store. MAPCO worked with design firm Chute Gerdeman on the flagship store, which earned a design award from Shop!

Association.

The design team was very cognizant of sightlines in the store, Slater noted. “When you go too high [with gondolas], it impacts the openness. We kept everything low so the sightlines would allow for a better feel of the store,” he said.

Seating options extend from the inside out, and indoor seating includes space for customers to linger and take advantage of wireless charging. “We tried to provide the

exact experience for each customers’ expectation,” Slater said. “Customers can enjoy the store at their own pace.” The goal is to present customers choices in how they want to use the store, he added, which could mean different things to each person at different times of the day, from someone who wants to use the space to work or someone who wants to quickly grab items and go.

Outside, a curved canopy over the forecourt additionally contributes to the more modern store aesthetic. The canopy is unique in terms of how it presents itself equally well on two different highways, Slater said, describing it as a boomerang shape. “The canopy itself is a little thinner than a traditional canopy. We didn’t want to hide the store. It works to leverage the traffic from both highways,” he added, “and presents the store from every angle.”

The curved canopy will be part of future stores where there’s enough space to accommodate that design, Slater said. That includes a new build location slated for construction later this year. The flagship store, which opened in October 2021, will continue to inspire new MAPCO sites, Slater said, with the same finishes and design incorporated in refreshed and remodeled legacy stores. “The flagship store sets the standard,” he added. MAPCO currently owns 340 corporate stores.

Customers are greeted with wide open spaces from the moment they walk into the store.”

Renee Pas’ writing draws from both her c-store background and her more than 20 years writing about various retail channels.

She can be reached at reneepas4@gmail.com.

NACS AUGUST 2022 41

44 AUGUST 2022 convenience.org

CONFERENCE: October 1–4, 2022 EXPO: October 2–4, 2022 Las Vegas Convention Center | Las Vegas

FIND INSPIRATION AT THE 2022 NACS SHOW. It’s “full speed ahead” as NACS prepares for the can’t-miss 2022 NACS Show in Las Vegas, Nevada, October 1–4, where attendees can expect unparalleled networking with peers, exciting new vendors and insight into how industry superstars are solving hot-button issues such as staffing and supply chain challenges.

This year’s NACS Show theme builds on the momentum of last year’s “We Got This” theme as the industry moves beyond the pandemic and defines the future of convenience. “All signs point to the 2022 NACS Show being the biggest and best Show yet,” said Henry O. Armour, NACS president and CEO. “Since last year’s Show, the excitement and momentum has been building toward the time when we can all regather as an industry—including with our international partners—to explore innovative new products, ideate around solving current challenges and reconnect with each other, live and in person. We can’t wait to welcome you to Las Vegas this October.”

The NACS Show provides the most comprehensive look at products and services for the convenience retailing industry. Retailers come to discover proven ideas and strategies that enable them to increase sales, attract new customers, build their brand and improve their bottom line. Suppliers exhibit at the Show to establish a presence in the convenience channel, obtain sales leads, increase product exposure and introduce new products. Historically, 23,000+ people attend the NACS Show from over 70 countries, and more than 1,200 companies regularly exhibit.

NACS AUGUST 2022 45

EXPLORE THE EXPO The expo, open October 2-4, covers more than 420,000 net square feet of exhibit space, with 1,200+ companies committed to delivering thousands of innovative new products and technologies in six key categories: 1. Merchandise 2. Candy and Snacks 3. Technology 4. Facility Development and Store Operations 5. Fuel Equipment and Services 6. Food Equipment and Foodservice Programs There is a dedicated area for first-time exhibitors, as well as a featured section for Cool New Products, giving attendees a first look at never-­before-seen products that are ready to hit the shelves.

The Cool New Products Preview Room is segmented into seven areas to help you easily locate new products: Green (eco-friendly), Health & Wellness, New Design, New Flavors, 46 AUGUST 2022 convenience.org

New to the Industry, New Services and New Technology. Here, you can capture product details and access exhibitor contact information, as well as save your custom “shopping list” for a visit to the main expo. Get an early and up-close look at industry novelties, trends and must-haves since this room is open earlier than the expo for retailers.

Be the first to engage with the latest technology, products and companies entering the convenience store market, including emerging categories by visiting the New Exhibitor Area. Located on the expo, this area features only first-time exhibitors to the NACS Show.

Get ahead of the game and your competition with the latest technology, products and companies entering the convenience store market, including new categories. This area opens earlier than the expo so retail buyers can be the first to see these new products and companies before anyone else.

LEARN FROM THE BEST Who better to learn from than the real-world industry insiders and retailer superstars who are shaping our industry’s future? NACS Show education sessions are designed—by industry peers—to make you and your entire team better. With learning opportunities ranging from category best practices to fully reimagining business operations to implementing technology innovations, there are education sessions specific to every convenience role and pain point.

This year’s 45+ education sessions were ideated and crafted by the NACS Convention Content Committee—your industry peers—with the goal of delivering the most relevant and stimulating content for NACS Show attendees.

Choose topics that best fit your needs, from foodservice to mobile technology to customer experience and more. Sessions will help you solve the problems you are facing today. Here are just a few of the exciting sessions planned: • Reinvigorating Dispensed Beverages • Telling Your ESG Story • EV Economics: Fact vs. Fiction • Turning Private Label Into a Powerhouse Brand • Mergers and Acquisitions Town Hall • Supercharge Your App • Self-Checkout Strategies • Supply Chain Success Stories • Menu Optimization: Think Like a Restaurant • Building a Digitally Enabled C-Store

NACS AUGUST 2022 47

• Insights and Advice From Industry Veterans • Leveraging Carwash Potential • Revisiting Store Design for Your Streamlined Workforce There’s no other gathering, workshop or school on earth that can match the industry-­ specific ­educational opportunities found at the NACS Show.

To guide your session selection, NACS has developed three segments based on where you are in the business life cycle in a certain topic: Launcher, Experimenter or Transformer. To use the segments when planning your education experience at the NACS Show, read each session description and look for the segment identifier to understand if the session is designed for your current needs. You might

fit into all three segments during the Show depending on where you are in your business.

Get even more from your NACS Show experience by adding one of our pre-­conference workshops to your registration: NACS Advanced Category Management Certification and NACS Food Safety Conference. Pre-­ conference workshops take place on October 1, day one of the NACS Show.

During the NACS Advanced Category Management Certification workshop, attendees can earn their NACS Certified Convenience Advanced Category Management certification by completing a hands-on, six-hour education session on October 1, from 8:30 a.m. to 3:30 p.m. PDT. “We received a fantastic response from last year’s category management program attendees, so we are bringing it back for 2022,” said Doug Spencer, director, NACS Solution Center. “This hands-on training will allow attendees to improve brand strategy, integrate customer behavior into merchandise planning and so much more—all without missing a minute of the NACS Show.”

Comprised of key strategic planning and analytical skill-building, the interactive workshop is tailored for experienced category management and merchandising professionals from retailer and supplier companies.

WHEN SELECTING AN EDUCATION SESSION, SELECTING ANYOU EDUCATION SESSION, ASKWHEN YOURSELF WHERE ARE WITH THE TOPIC: ASK YOURSELF WHERE YOU ARE WITH THE TOPIC: I have an I have an idea—now what? idea—now what?

Launchers Launchers

You know it’s important to build a strong foundation/ You know it’s important to understanding before build a strong foundation/ embarking on before a new initiative. understanding embarking on a new initiative.

How can I How can I simplify/enhance? simplify/enhance?

This is working! How do This is working! we take it to the How next do level? we take it to the next level?

Experimenters Experimenters

You are focused on growth beyond the foundation/basics are beyond startingthe to You are focused on and growth develop and implement complex foundation/basics and aremore starting to processes, and consistency. develop andstandards implement more complex processes, standards and consistency.

Transformers are

Experimenters are

Launchers are looking to dip their Launchers are toe intoto new looking dipwaters, their desiring to waters, master toe into new the basics. desiring to master the basics.

looking to build Transformers are resourcetoand bench looking build strength and for big moves. resource bench They are innovators and strength for big moves. within a Theyrisk aretakers innovators and givenwithin topic. a risk takers given topic.

still in testing mode Experimenters are but lookingmode to set still in testing company buttheir looking to set apart within a their company given area. apart within a given area.

How-to’s and How-to’s and best practices best practices

YOU WANT YOU WANT

Inspirational, forwardInspirational, forwardthinking thought leadership thinking thought leadership

A NACS Show attendee could be in any one of these segments based on the topic.

A NACS Someone Show attendee be in any of thesedrawn segments basedand onbest thepractices topic. sessions in the Example: starting outcould in foodservice may one find themselves to the how-to Launchers or Experimenters segments, while those withthemselves a more advanced and model,sessions for example, Example: Someone starting out in foodservice may find drawn to themature how-totech andbusiness best practices in the might findor themselves drawn to the forward-thinking sessions in the Transformers segment.

Launchers Experimenters segments, while those withthought a more leadership advanced and mature tech business model, for example, might find themselves drawn to the forward-thinking thought leadership sessions in the Transformers segment.

48 AUGUST 2022 convenience.org

Transformers Transformers

You often look outside theoften c-store channel for You look outside ideas, examining the c-store channelalternative for growth opportunities. ideas, examining alternative growth opportunities.

BEST

SELLER

GoPremier.com

SCHEDULE OF EVENTS Drawing on the fundamentals included in the online NACS Advanced Category Management curriculum, the program will incorporate NACS State of the Industry data and offer collaborative work sessions.

Attendees will learn how to develop a holistic brand strategy and identify points of differentiation. They will discover how to integrate consumer shopping behavior to create winning space and assortment strategies— with an emphasis on how COVID-19 has impacted the industry. A deep dive into price elasticity modeling, utilizing some behavioral economic principles, will guide attendees on how to optimize price, promotions and overall profitability.

Speakers include Liza Salaria, senior principal consultant, Impact 21, and Lucia Romanello Crater, executive vice president, sales and business development, Impact 21.

The program is limited to 60 participants and is open to buyers and suppliers.

Pre-registration is required, and the cost is $499 for NACS Show attendees and $599 for NACS Show exhibit staff.

New this year is the NACS Food Safety Conference, where food safety, foodservice, quality assurance and risk management professionals will lead a first-of-its-kind industry-specific event for the global convenience retail community. The conference will be held October 1 from 9:30 a.m. to 3:30 p.m. PDT. Learn how a company’s food safety culture can support, align and contribute to a company’s vision and mission. Understand behaviors and how to create interventions aimed at organizational decision makers, professional food handlers, store-level managers and employees: the gate keepers of safe food.

Discover collaborative solutions to today’s safe food handling challenges, including supply chain issues, staffing and training and innovations that can help save time and costs.

Pre-registration is required, and the cost is $329 for NACS Show attendees and $499 for NACS Show exhibit staff.

WHAT ARE YOU WAITING FOR? 50 AUGUST 2022 convenience.org

Over four action-packed days, the NACS Show has a full schedule of activities for every convenience and fuel retailer and everyone on your team.

Uncover the most innovative products and technologies, tap into impactful education sessions and access engaging networking opportunities.

2022 NACS SHOW SCHEDULE-AT-A-GLANCE SATURDAY, OCTOBER 1 7:30 AM – 5:30 PM Registration 8:30 AM – 3:30 PM Category Management Pre-Conference Workshop 8:30 AM – 11:00 AM NACS Supplier Board/Supplier Member Meeting 9:30 AM – 3:30 PM NACS Food Safety Conference 10:00 AM – 5:30 PM Cool New Products Preview Room - Retailers Only 10:00 AM – 5:30 PM NACSPAC Lounge 12:00 PM – 5:00 PM Hunter Club Lounge 12:00 PM – 6:00 PM International Hub 12:00 PM – 3:30 PM Education Sessions (12:00 - 1:00 p.m., 1:15 - 2:15 p.m., 2:30 - 3:30 p.m.)

3:45 PM – 5:00 PM General Session 5:30 PM – 7:00 PM NACS Show Kick-Off Party (ticketed event)

SUNDAY, OCTOBER 2 7:30 AM – 5:30 PM Registration 8:00 AM – 11:30 AM Cool New Products Preview Room - Retailers Only 8:00 AM – 5:00 PM Hunter Club Lounge 8:00 AM – 5:30 PM NACSPAC Lounge 8:00 AM – 10:15 AM Education Sessions (8:00 - 9:00 a.m., 9:15 - 10:15 a.m.)

8:00 AM – 6:00 PM International Hub 10:30 AM – 11:45 AM General Session 10:30 AM – 5:30 PM New Exhibitor Area 11:30 AM – 5:30 PM Expo 11:30 AM – 5:30 PM Cool New Products Preview Room

MONDAY, OCTOBER 3 7:30 AM – 5:30 PM Registration 8:00 AM – 5:30 PM Cool New Products Preview Room 8:00 AM – 5:00 PM Hunter Club Lounge 8:00 AM – 5:30 PM NACSPAC Lounge 8:00 AM – 10:15 AM Education Sessions (8:00 - 9:00 a.m., 9:15 - 10:15 a.m.)

8:00 AM – 6:00 PM International Hub 8:30 AM – 10:30 AM Exhibitor Advisory Committee Meeting 10:30 AM – 11:45 AM General Session 10:30 AM – 5:30 PM New Exhibitor Area 11:30 AM – 5:30 PM Expo

TUESDAY, OCTOBER 4 7:30 AM – 1:30 PM Registration 8:00 AM – 1:30 PM Cool New Products Preview Room 8:00 AM – 1:30 PM Hunter Club Lounge 8:00 AM – 1:30 PM NACSPAC Lounge 8:15 AM – 9:15 AM General Session 8:00 AM – 1:00 PM International Hub 9:00 AM – 1:30 PM Expo

Historically, 23,000+ people attend the NACS Show from over 70 countries, and more than 1,200 companies exhibit. The NACS Show provides the most comprehensive representation of products and services for the convenience and fuel retailing industry, and you don’t want to miss it. Registration is open now. Save your spot and get the pre-show rate. Register today at www.nacsshow.com.

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Liggett Vector Brands is the exclusive sales, marketing and distribution agent for Liggett Group and Vector Tobacco. © 2022 Liggett Group MSA PARTICIPANT. 2 billion packs of Pyramid based on company sales 2009 through August 2019.

REDEFINING THE

FORECOURT HOW TO USE PUMP TECHNOLOGY TO MAKE MONEY AND ENGAGE CUSTOMERS.

52 AUGUST 2022 convenience.org

HOW CAN RETAILERS DRIVE MORE CUSTOMER ­ENGAGEMENT FROM THEIR FUEL PUMPS? Fueling up is a unique circumstance where a business can capture the full attention of a customer for an extended period with limited distractions. Step one in taking advantage of this opportunity for retailers begins with the capabilities of the outdoor payment terminal (OPT) displays featured on their fuel pumps. C-stores have a massive opportunity to drive engagement and capture attention with these screens. With the right OPTs and system interface, the possibilities are endless.

Full color video and audio touchscreen payment terminals can host a multitude of revenue generating opportunities like loyalty programs, media deployments, in-store offers or customized prompts or promotions.

For retailers looking to make a fast return on investment, media is a fantastic opportunity to grow store revenue. Forecourt retail media companies like Fuel­Media TV work with advertising companies to coordinate and deploy advertisements to the fueling pump. Through FuelMedia’s fully programmatic ad-serving network, advertisements and store promotions can be targeted to location, brand, audience, offerings and more. And ads can be updated in moments to capitalize on changes in the weather or other events. Cloud-connected OPTs like the Invenco G6 and G7 OPT models, which have an asset management platform backing them, make the process of importing, organizing, deploying and collecting data on advertising even easier.

This interview is brought to you by support from Invenco, a NACS member.

HOW CAN C-STORES GROW REVENUE THROUGH THIS KIND OF MEDIA? When OPT digital displays showcase c-store products at the pump, they move fueling customers into the store, increasing foot traffic, growing basket size and driving revenue. FuelMedia TV works with CPG brands and media firms on product advertising, which can be coordinated with the retailer’s category management team to multiply the effectiveness of trade promotions, as well as promotions for retailer-branded products.

Highly impactful advertisements, delivered to customers moments before entering the store, dramatically increase product, category and brand sales across the board.

With a trusted media partner delivering family friendly infotainment, curated to appeal to local audiences, c-stores can leverage media to build their own brand. Creating a positive, engaging customer fueling experience encourages loyalty and welcomes fueling customers into the store.

CAN RETAILERS ALSO COLLECT CUSTOMER DATA OR OTHER INFORMATION? Absolutely, and this is where the advanced technology and cloud-based Invenco/FuelMedia TV solution shines. It is an ideal platform to promote and acquire customers for the retailer’s loyalty program and mobile app.

OPTs can be configured to recognize loyalty customers with opportunities to personalize retargeting messaging to loyalty mobile app users. This loyalty information can also become part of the audience targeting attributes and success measurements for CPG advertising initiatives and store promotions.

HOW COMPLICATED IS IT TO IMPLEMENT? Agile and innovative cloud-based solutions make it easy to update, monitor and control each display at the station level. Platform-based integration of foodservice ordering, couponing and loyalty apps save money and time from inception to implementation.

That means new consumer engagement

capabilities can be introduced at the pump in hours or days vs. months or years. And with full-service media management capabilities, planning, targeting and delivering store promotions are a breeze for marketing staff.

DO YOU HAVE TO RELY ON OUTSIDE VENDORS TO MAKE CHANGES? With the right system interface, you should not have to. For a long time in the retail fuel industry, vendors of c-store software systems provided complex code structures which are difficult to implement, adjust and expand.

This meant that each change and expansion of the platform had to be coordinated through and completed by the system vendor.

We believe this shouldn’t be the case. Each business should truly and fully own their systems, with the ability to manage, change and build on that system as they develop new ideas and opportunities for implementation.

This saves time and money for businesses in that they can develop system road maps on their own timeframe and using their own internal teams or selected vendors to manage implementations. It also affords an advantage over the competition, which may be left tied to a vendor they selected years ago to make improvements to their digital customer engagement strategies.

CRAIG PANTER Chief Business Development Officer Invenco www.invenco.com

NACS AUGUST 2022 53

Boost Beverage Energy and sports drinks are thriving, thanks to new products and BFY offerings.

BY TERRI ALLAN

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D

Jag_cz/Shutterstock

ers

espite supply challenges over the past year or so, sales of some packaged drinks segments at Iowa’s Kwik Stop chain are surging. “Our sales of energy drinks have increased the last two years,” said Amy Davidshofer, marketing director at the Rainbo Oil-operated convenience retailer.

“Monster energy drink has been the key driver, but other brands have also shown growth.” New flavors, including limited-time-only expressions, also have been big contributors to the segment’s strong trends, Davidshofer added.

Nationally, 7-Eleven reports growth for energy drinks as well as sports drinks. “Over the past few years, the energy and sports drink industry has grown considerably as demand for functional drinks has increased,” the company said. “At 7-Eleven, we focus our efforts on providing these diverse offerings as energy and sports drinks lead the beverage category and total enterprise in growth.”

Both energy and sports drinks are helping to propel c-store sales of packaged beverages in the aftermath of the COVID-19 pandemic as store traffic improves and as both subcategories benefit from similar trends, namely product innovation and consumer demand for healthier offerings. Retailers and marketers agreed that the prospects for the two segments remain strong, and the drinks are likely to continue to drive c-store shoppers to the cold vault in search of the latest hydration and revitalization solutions.

ENERGIZED DRINKS Energy drinks continue to be the top packaged beverages subcategory, accounting for 26.8% of total category sales in convenience in 2021, according to the NACS State of the Industry Report of 2021 Data.

Average store sales of energy drinks shot up to $9,027 last year from $7,890 in the year prior, while average gross margins improved to 41.85% from 40.63%.

“2021 was an amazing year for energy drinks across outlets as leading brands posted record growth despite several new entrants,” said Leslie Newlee, vice president of insights and category development at Red Bull. The segment also benefited from increased penetration and buy rates, she added, “as occasions were more frequent and the pandemic home-stocking trend continued.”

Product innovation is certainly one of the underlying trends for energy drinks these days—in the form of brands new to the market as well as line extensions.

Red Bull’s Summer Edition Strawberry Apricot, for example, “is already outperforming last year’s Dragon Fruit LTO, which became a permanent item this year,” Newlee reported. “And later this year, we’ll launch a new LTO winter edition.”

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Sports drinks are diversifying as people are getting more mindful and interested in health.”

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HEALTHY ENERGY ON THE RISE ZOA energy drink, meanwhile—founded by Dwayne “The Rock” Johnson and distributed

by Molson Coors Beverage Co.—launched in March 2021 with a focus on health benefits.

Containing turmeric, camu camu and Acerola cherries for vitamin C immunity support, as well as B vitamins to aid mental focus, ZOA’s zero-sugar formula features natural caffeine from green tea extract and green coffee. “Energy is the second-highest functional benefit consumers are looking for in a beverage, behind hydration,” remarked Brenda Jones, vice president, business development and e-commerce at ZOA Energy. Yet, household penetration remains low, she said, as “many consumers desire healthier options to traditional energy drinks.” Response to the new brand has been “nothing short of amazing,” Jones reported, and she expects continued growth. “Today, the healthy energy subcategory accounts for 5% of energy drink sales but is driving 48% of the growth,” she remarked.

“We forecast that healthy energy will be 26% of the category by 2024.”

Riot Energy is another emerging betterfor-you brand. According to Laura Jakobsen, co-founder and CEO, Riot is seeking to “transform the category, with fresh, clean ingredients.” Noting that the brand contains “real ingredients and offers real functionality,” Jakobsen said Riot is targeted to “nextgeneration consumers,” ages 19-30, who have a “high awareness in better-for-you energy and its opportunity.”

The Starbucks brand also recently entered the energy drink segment via the North American Coffee Partnership, a joint venture with PepsiCo. Starbucks Baya energy drink launched earlier this year, and according to Montgomery, the product, which gets its caffeine from coffee fruit and beans, is “quickly gaining popularity and becoming a consumer favorite for on-the-go caffeine occasions.”

The blurring of the popular coffee brand and energy drink will likely benefit from strong segment sales during the morning daypart in c-stores. “People want energy these days, especially first thing in the morning,” remarked Wally Albin, manager of Dad’s Quick Mart in Reno, Nevada, which often runs twofer deals on energy drinks. Davidshofer agreed, noting that sales of energy drinks at Kwik Stop spike early in the day.

“It’s a bit unexpected, but energy has definitely emerged as a breakfast item,” she said. For that reason, both Newlee and Montgomery encourage c-stores to leverage the opportunity. According to the PespsiCo executive, 40% of MTN Dew Energy is consumed in the morning, and offers like breakfast food/energy drink bundles and value offers help “keep the energy category top of mind.”

NACS category definitions classify liquid energy shots like Vitamin Energy and 5-Hour ENERGY in the health and beauty category, not the packaged beverages category. Living Essentials, owner of the 5-Hour ENERGY brand, introduced a carbonated energy drink into the market last year. The caffeinated and vitamin-infused drinks come in berry, grape and watermelon flavors and contain zero sugar.

It’s a bit unexpected, but energy has definitely emerged as a breakfast item.”

EllenM/Getty Images; Kitsan1980/Shutterstock

PepsiCo’s Rockstar Energy brand also has been innovating. Rockstar Unplugged, with hemp seed oils and B vitamins, and Rockstar Punched Aguas Frescas both rolled out recently. “After all the pandemic restrictions, people are looking for rewards and indulgence but within reason,” said Kent Montgomery, head of industry relations at PepsiCo, of the segment’s flavor proliferation. “The products need to taste good as consumers look to treat themselves but also be somewhat healthy.” Indeed, energy drinks that promote health benefits and are comprised of clean and real ingredients are resonating with consumers. “Wellness trends are driving growth for products like MTN DEW Energy, which provides functional benefits with less sugar,” the PepsiCo executive said.

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Additional coolers at the register really impact impulse buys, especially when people are in a hurry.”

RETURN TO SPORTS DRINKS Sports drinks, meanwhile, grew at the fastest rate of all packaged beverage subcategories in 2021, reaching average store sales of $3,205. Like energy drinks, sports beverages are benefiting from innovation, particularly drinks offering electrolytes, reduced calories and clean ingredients, noted Jayme Gough, research manager, NACS. What’s more, with pandemic restrictions lifted, “kids are back to school and sports,” she noted, helping to boost sales of the drinks. Indeed, Scott Wiley, senior manager, brand and category insights, hydration category, at The Coca-Cola Company, said the company’s c-store sports drinks sales last year grew more than 20%, driven by consumer spending increases and purchase frequency.

Brand innovation is also helping to revitalize sales. The latest additions to the BodyArmor line, for example, include Mamba Forever, and for BodyArmor Edge, new additions include Strawberry Slam and Watermelon Wave flavors. 7-Eleven’s private-label Replenish sports drink, meanwhile, expanded last year with Replenish + Caffeine, a caffeinated version designed to help restore electrolytes and energy lost during exercise. “We’re constantly innovating our private brand assortment to meet our customers’ changing needs,” the company said. “The demand for functional beverages, unique energy options and new flavors for Replenish have all been on the rise,” and customers appreciate that the sports drink is a less expensive alternative to other brands.

Segment leaders Gatorade and Powerade are offering more reduced sugar options. Ga58 AUGUST 2022 convenience.org

KEEPING THE MOMENTUM Retailers and marketers see plenty of opportunity to keep the momentum behind energy and sports drinks going in 2022 and beyond. Consistent merchandising and marketing support will play key roles, they said.

Montgomery pointed to the importance of digital communications that drive consumers to store locations and “layered messaging between the curb and cold vault,” including outdoor signage and gas station TVs. Functional benefit communications, meanwhile, like static clings on cold vault doors help to educate consumers on key ingredients, the PepsiCo executive noted.

Red Bull’s Newlee and Coca-Cola’s Wiley, meanwhile, recommend incremental placement of energy and sports drinks beyond the vault, such as in open-air racks, at the pump and at the checkout counter. That’s a practice Iowa’s Kwik Stop adheres to, according to Davidshofer. “Additional coolers at the register really impact impulse buys, especially when people are in a hurry,” she said. And while energy and sports drinks sales tend to “ebb and flow,” Davidshofer is optimistic about the beverage segments. “There’s room for more growth,” she said, “and we plan to take advantage of it.”

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

Green Pimp/Getty Images; Kitsan1980/Shutterstock

“5-hour ENERGY is already a top three energy brand, so the addition of the 16-ounce carbonated beverage product is a natural progression,” CEO and Founder Manoj Bhargava said in announcing the new product in October 2021. “For the times when you’re tired and thirsty, our new carbonated beverage has a refreshing, lighter taste” compared with competitors, Bhargava said.

torade Fit contains no added sugar, artificial flavors or sweeteners, while Gatorlyte has less sugar than average sports drinks and a specialized electrolyte blend, Montgomery said. Recent introductions from Powerade, meanwhile, include Zero Sugar Watermelon Berry and Zero Sugar Citrus Peach. At Kwik Stop, Davidshofer is considering adding some of the new sports drink options. While the chain was impacted by product shortages last year, she said, “We’re hoping for a bounce back in 2022. Like other categories, sports drinks are diversifying as people are getting more mindful and interested in health.”

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MUTU L GO LS RETAILERS ARE NAVIGATING SO MANY CHALLENGES RIGHT NOW. HOW CAN A STRONG SALES AND MARKETING PARTNER HELP? Nurturing value-add relationships and helping manufacturers and retailers make data-driven decisions that advance their mutual goals are the keys to a good partnership.

Because we have a breadth of relationships with retailers in every channel, as well as brands in every category—from the largest convenience and grocery chains and wholesalers down to the independent operator, and from iconic CPG brands to emerging brands—we can see and address pain points along the entire path to purchase.

A strong sales and marketing partner can help brands and retailers solve problems and 60 AUGUST 2022 convenience.org

identify and seize opportunities. They share best practices, thought leadership, industry experiences and data and insights in areas that are critical right now—supply chain, out-of-stocks, inflation and related changing consumer behaviors.

MORE THAN TWO YEARS AFTER THE PANDEMIC, OUT-OF-STOCKS AND OTHER SUPPLY CHAIN CHALLENGES HAVE CONTINUED. WHAT CAN BE DONE TO MITIGATE THE IMPACT? Our retail services are in high demand as manufacturers and retailers continue to be challenged with keeping products available for shoppers to buy. Because the core shopper is less price-sensitive and more impulse-driven, it’s even more critical to meet the expectation of availability and expediency.

In c-stores, increasing sales begins with having the right products on the right shelves at the right time. With the challenges we’re seeing, this basic tenet requires a new level of

SeventyFour/Getty Images

DATA-DRIVEN INTELLIGENCE— AND A STRONG PARTNER—IS CRITICAL TO C-STORE SUCCESS.

This interview is brought to you by support from Advantage Solutions, a NACS Hunter Club Gold member.

transparency, data sharing and collaboration between manufacturers and retailers.

With a deep knowledge of the supplier community, we’re often asked by retailers for input on brands and different manufacturers who can meet these important requirements in supply. One of the largest c-store chains contacted us when their incumbent supplier had chronic shortfalls in meeting fill rates.

Because of our large and diverse portfolio, we were able to quickly bring our client to the table and facilitate a winning solution for sustainable supply with another top-tier brand.

Advantage Sales’ most recent “Outlook: June 2022” study found that 78% of manufacturers say supply will improve in the second half of the year. Although retailers are less optimistic, our clients are updating us on investments in production capability and capacity, as well as alternative materials in packaging.

Still, most manufacturers expect that at least one supply chain issue will continue to affect their business over the next six months. Top challenges include raw materials, transportation, manufacturing labor and packaging.

WHAT CHANGING CONSUMER SHOPPING BEHAVIORS ARE YOU NOTICING? With rising food and gas prices and concerns about personal finances nudging COVID-19 from its top place on Americans’ list of worries, brands and retailers are facing new challenges—and new opportunities—arising from shoppers’ changing behavior.

In c-stores, where fuel is often a sales driver, the continued rising price of gasoline is having an impact. While trips to the pump remain steady, fewer drivers are filling the tank, and they are more likely to spend less in-store. Building loyalty through digital, leveraging insights to promote relevant products and services—these are some of the strategies we’re seeing to draw shoppers from the forecourt.

Meanwhile, the demand for online shopping has been the other big change, and that shows no signs of abating. While we tend to associate the e-commerce boom with grocery, the convenience channel is acting on the opportunity for delivery and clickand-collect, particularly in foodservice. We expect to see continued growth in third-party e-commerce partnerships, especially with retailers’ commitment to foodservice, as well as investments in cashier-less checkout as a labor strategy and a shopper benefit.

WHERE ARE YOU FOCUSING YOUR ATTENTION AND RESOURCES IN THE C-STORE CHANNEL THIS YEAR? Our clients rely on our team to provide category insights and data, as well as shopper intelligence, as they weigh decisions like SKU reduction for efficiency gains and package diversificaMark Larrabee Senior Vice President, tion to reduce price on Sales, Convenience shelf. Due to the impact Advantage Sales of these decisions at advantagesolutions.net retail, our attention and resources are grounded by a relentless focus on our customer’s customer—the wholesalers’ retailers and the retailers’ shoppers—and our branded client partners’ consumer.

The retailers we serve are focused on the fundamentals of labor, supply and managing inflationary pressures. We’re impressed by their ability to manage the day-to-day while continuing to innovate with manufacturers and embrace new technologies. With the proven resilience of our customers and clients, we’re inspired to bring the full weight of our capabilities to help them along the way.

NACS AUGUST 2022 61

RACE TO THE

FUTURE NACS Convenience Summit Europe speakers shared creative ways to tackle pressing problems and set retailers up for long-term success.

BY KIM STEWART

N L to R: Hans-Olav Høidahl, Circle K, Norway; Frank Ellingjord-Dale, NorgesGruppen; Brian Donaldson, Maxol Group; and Mark Wohltmann, NACS

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ACS Convenience Summit Europe brought together convenience retailers and supplier partners from across the globe in Berlin May 31–June 2 to explore top-of-mind issues in the industry and envision the future of everything from unmanned c-stores to ESG to autonomous vehicles.

“What we try to do at NACS is to create a global radar screen for our most progressive members to look into the future and how it’s going to evolve, so that they can be first to market,” NACS President and CEO Henry ­Armour said, explaining why NACS is engaged on the global stage. “It’s the exploration, the discovery that makes us all smarter.”

Clearly, the future of convenience retail is already here in the form of migrolino AG, owned by the migros group, Switzerland’s largest retailer and operator of 347 convenience stores. Sebastian Becker, head of wholesale and logistics, migrolino, presented “Unmanned, Delivery, Click and Collect, Drive-Thru…We Have It All!” migrolino takes a digital-forward approach, focusing on its mobile app and contactless shopping and payment functionality. ­Ultra-fresh food sourced locally, better-for-you products, sustainability and efforts to reduce food waste are all key facets of its business model. Under its growth strategy through 2024, migrolino is leaning into foodvenience; digitalization of signage, price labeling, ordering and payments; 24/7 automated format stores, home delivery and location expansion, Becker shared.

Quick commerce is the next retail revolution, Becker noted as he revealed some key performance indicators for heymigrolino, an online shop launched in January 2021 featuring more than 750 items available for delivery in the greater Zurich area. The average basket size for home delivery is 56.45 Swiss francs (US$58.36), nearly six times larger than in-store shopping, and orders are delivered within 36 minutes.

Rebekah Duncalfe, Meraki Creative Therapies

Carol Chen, Shell Global Mobility

Sebastian Becker, migrolino

Anna Grabowska, Żabka

L to R: Jesper Østergaard, Reitan Denmark; and Henry Armour, NACS

To continue to grow, migrolino developed gooods, a small-format store concept created by women for women, Becker said. It focuses on six megatrends in retail: • Connectivity: Omnichannel retail • Fast-moving: Short customer dwell times in the store and impulse buys • Neo-ecology: Sustainability, zero waste, organic products and animal welfare • Health: Healthy lifestyles and specialty diets like gluten-free, lactose-free and moral-focused nutrition • New Work: Work from home and hybrid work arrangements • Mobility: 24/7 society using new forms of transportation The tiny stores feature private-label beverages, packaged and ready-to-eat foods.

Shelves have electronic labels to reduce labor time, and digital signage enables dynamic customer targeting and scrolling messaging that can be customized according to daypart and store-specific information. Customers can get discounts via the mobile app and can use it to scan their purchases, pay and go, skipping any lines. There’s an online gooods delivery feature, too, offering delivery within 60 minutes. And in-store shoppers can catch up on emails in a workspace since migrolino listened to public transportation officials and included table space for commuters.

Becker said 60% of gooods shoppers are women. “We still sell more chocolate bars than protein bars,” he said. What you won’t find is an emphasis on tobacco. Instead, there is a tobacco vending machine.

The newest concept from migrolino is pick-me 24/7, which the company launched in response to an EV charging partnership

with Tesla. “They wanted a shop open 24/7.

We said, we can’t have a manned shop at this location, so this was our solution,” Becker said of the automated kiosk-like store in a shipping container.

THE CONVENIENCE OFFER Nordal Cavadini, partner, Oliver Wyman, presented “The Future Dimensions of the Convenience Offer.” Generation Z is all about digital and immediacy, he shared, outlining what future retailing might entail for a cohort of consumers who have always interacted with screens via touch or voice.

“In 10-15 years from now, the future shopper will make decisions in a much more conscious way, sustainable way, than has been the case in the past,” Cavadini said. “It will be a shopper who makes no compromises in terms of convenience. It will be everything and anything within the hour. … Mainly shopping online, including for food. And it will be a shopper who takes inspiration from social media, much more than paper or other channels. Likely less driving and perhaps not needing a car. And less cash—everything will be paid for with plastic or a digital wallet.”

The industry is already seeing these shifts.

“City center locations are suffering” due to work from home, while suburban locations where people already live “are overindexing.”

At-home consumption of meals will continue, although “eating at home does not mean cooking at home,” he said, pointing to delivery of ready-to-eat, ready-to-cook foods. “This part of convenience is picking up massively.”

Meanwhile, inflation and higher prices are spurring consumers to shop around and switch to more budget-friendly products. “We NACS AUGUST 2022 63

Nordal Cavadini, Oliver Wyman

shared what he calls six archetypes for success. These include: product leadership (own labels, superior offers), magnetic platform (ecosystem that locks consumers in for all purchases), go-to-choice intermediary (digital influences), customer experience, proximity player (food is an important touchpoint to drive frequency and basket size) and fulfilment intermediary (delivery services).

It has never been as easy as today for the shopper to get food and never as difficult for us as a company to serve all of these touchpoints.”

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have never experienced the level of inflation that we are seeing in 40 years. Depending on where you live in Europe or the U.S., inflation is somewhere between 5 and 10%.”

He noted that “after two years of the pandemic, shoppers want to spend money on other things besides food and mobility. We are selling a bit of food, a bit of tobacco, perhaps some newspapers, and we have a lot of competition with respect to where the future is going to be, which is food for most of us. We are competing for the share of stomach that will make us attractive to a new generation of customers who may not want to stop at a gas station to refuel or even meet that need. It has never been as easy as today for the shopper to get food and never as difficult for us as a company to serve all of these touchpoints.”

So, what is a convenience retailer’s role going forward? “First and foremost,” he said, “The store is by no way dead. The majority of consumers are omnichannel—they look online and buy in store or look in store for inspiration and buy online. You want to play a role in the future, you have to be omnichannel.”

Pay attention to direct-to-consumer commerce, he advised. “Your role has to be to control or at least be aware of the different touchpoints taking place” between manufacturers and retailers and consumers.

His third piece of advice for retailers is to consider partnerships with established players. “Think about coming together with those who have more experience in covering parts of the value chain that are new. He

RETHINKING MOBILITY Dennis Schwedhelm, associate partner, ­McKinsey & Company, presented “The Future of Mobility,” plus “Connecting Driver and Retailer in an Autonomous-Driving World.”

Retail, convenience and mobility are all mixed in the same ecosystem now, he said.

“A lot of this is driven in cities and by cities, and you need to think about it in an inte­ grated way because it changes how, when and where you interact with your customers.” The how is what retailers should look to influence, he advised.

Scooters, e-bikes, ride-hailing and car-­ sharing as efforts “all try to reduce congestion and use of cars in cities,” and Paris is Schwedhelm’s favorite example of the changing face of mobility. The French capital has cut vehicle traffic by 30% over the past 15 years and plans to cut greenhouse gas emissions from vehicles by 40% by 2030, including a plan to ban diesel cars by 2024 and gasoline-powered vehicles by 2030. All city streets will have bicycle lanes by 2024, and intermodal forms of transit will be widely available.

He cited the 15-minute-city concept that would allow residents to reach their daily destinations via a 15-minute walk or bicycle ride.

It’s hard work, he said, but Paris is committed to the change. “Other cities will do the same,” he said. “The shift will look different in every city. … It’s super local how the world is going to evolve, and you need to think superlocal in how you act on that.”

Electrification is a shiny object. So are autonomous vehicles and connected vehicles and roadways. “When we look at the pace of the uptake in electrical vehicles, we’ve seen a tipping point. It’s not a concept anymore. It’s

just a question of when and how fast we will move to all vehicles being electric.”

Adoption varies drastically, though, and part of that can be attributed to purchase subsidies and regulations. “If you buy an electric vehicle in Denmark or Norway, you get subsidies that are worth about half of that price point,” Schwedhelm said. Incentives in Germany and France are lower. “Don’t think of the electric vehicle as the one shiny object that’s going to happen overnight. It’s going to be very diverse. And fuel is not going to go away overnight, so you will need to find a concept that caters to both over the next 10 years of transition.”

Fully self-driving vehicles are still not here, and after years of hype, consumer interest in autonomous vehicles has slipped. “Consumers are not necessarily buying into this promise,” based on recent survey findings from ­McKinsey. For several years, consumer interest in autonomous vehicles was on the rise but “last year was the first time that responses actually dropped.” He attributes that shift to safety concerns in the wake of crashes involving Tesla models whose owners thought they could zone out while their car did the driving and also the confusing nomenclature for automated driving systems.

Once autonomous vehicles are available and gaining market share, the convenience retailing model will look “completely different because people don’t necessarily have to stop anywhere. They will sit in the car, and you need to interact with them in a different fashion.” He also touched on the lack of needed charging infrastructure. “It’s a huge bottleneck to build it out fast enough.” He sees the rise of destination charging that will become a community hub.

A NUANCED LOOK AT ESG Adopting environmental, social and governance (ESG) initiatives just for the sake of looking good to shareholders or consumers doesn’t work. Instead, elements must be woven into a company’s DNA—which includes contributing to a greater social purpose but also making money. And companies need to tell their ESG story to their customers. These

Dennis Schwedhelm, McKinsey & Company

were some of the takeaways from the “ESG in Action—How to Get Value Out of It” session.

ESG has gained traction among corporations in recent years “when companies realized that they could make money by being environmentally responsible in their operations,” Armour said.

Three companies took the stage to focus on the three pillars of ESG, with overlapping approaches: • Rafał Rudzki, ESG director, Żabka Polska, based in Warsaw, Poland, with about 7,000 convenience stores across the country.

• Murat Zengin, chief marketing officer, OPET, based in Istanbul, Turkey. OPET is the second-biggest fuel-oil distribution company in Turkey, with more than 1,300 stations under the brand of OPET and SUNPET. • Stephen Hamilton, customer proposition director, Henderson Retail, Belfast, Northern Ireland. Henderson Retail is a division of Henderson Group, which owns and operates more than 95 SPAR and EUROSPAR stores in Northern Ireland.

In guiding the discussion, Armour said he sought to bridge the gap between those companies who aim to save the planet and those who aren’t yet concerned with ESG efforts.

At Żabka, the crucial elements are “integrity, integration with the business and a

It’s super local how the world is going to evolve, and you need to think superlocal in how you act on that.”

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Andrew Thornton, Heart in Business

Jordi Rua Gonzalez, Microsoft, Italy

Siobhán Grimes, Maxol Group

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strategy,” explained Rudzki. Żabka lives out its ESG purpose in multiple ways, Rudzki says. The Polish company strives to improve the quality of its private-label brands by scoring them for nutritional value, offering a selection of 100% plant-based food that caters to flexitarian lifestyles.

“On the other side when it comes to our franchisees (7,000 stores), we decided to phase out all unnecessary plastics,” Rudzki said, including disposable plastic bags. “Everything is certified paper-based items.” He said these simple things “change reality and help us to build that credibility” with customers. Żabka runs internship programs for underprivileged youth that “show them that they can become in the future individual entrepreneurs,” Rudzki said. The program has a social purpose but also a business one in terms of training the next generation of potential c-store workers.

Rudzki said the privately owned company has a “great focus on culture and engagement of co-workers.” And “sharing the story with the public is quite important. In our case, we’ve been reporting ESG elements for a number of years. We are transparent in what we do. When we fail, we say that.”

Zengin of Turkey’s OPET stressed the importance of sincerity and community investment when it comes to ESG efforts and then telling the story of your company’s social purpose. “Communication is crucial in every aspect, especially in ESG,” Zengin said.

The publicly traded company was founded by two high school teachers 30 years ago. “So, our way of governance is teaching,” Zengin said. “We make our people believe our values.

We teach our consumers about who we are and why we do what we do.”

OPET doesn’t lose sight of the fact that it’s an oil company. “We are not a charity organization,” Zengin said. “It’s not bad to be a charity, of course, but they are two different things.” Companies need to be profitable in order to invest money to effect change in society. “We are in business to make money, not save the world,” he said.

“You must invest in your business, so the business grows, people work, they feed,

they travel, people prosper, the environment will change, the society will grow.” At the same time, “we believe in what we do, and we do it sincerely,” Zengin said. “We are a very strong values-driven company and get results for our business.”

An important part of OPET’s community investment is empowering women in Turkey, especially the women who work in the company’s stores. “We are empowering women because it’s a huge social problem all over the world and in Turkey. We are doing it for the sake of the women, but in the stations in the service areas that women work, our income is 4% higher. You understand what it means in terms of income in the oil business, but that way we can invest more and more to change the culture. Companies should earn and contribute to society.”

Henderson Retail is just starting out on its ESG journey, Hamilton said. In its stores, Henderson uses 100% renewable energy across its portfolio, including energy from solar and wind turbines. “It’s an initiative that’s part of ESG, but it’s also a commercially sensitive thing to do,” shared Hamilton.

Fresh food is a linchpin of the brand’s proposition. “Seventy-five percent of our fresh foods are sourced in the island of Ireland,” Hamilton said. “It’s a good message.”

Henderson is a family-owned business, which believes in “doing the right thing for the right reasons.” The company’s stores don’t sell alcohol or lottery services.

One corporate goal is to increase sales of better-for-you products, Hamilton explained, and the other is decarbonization. “This is how you can tell the story to the financial community,” he said. “Another focus area and strategy is to help our customers lead a more sustainable life,” part of which is expanding its physical store assortment and digital offer.

PLANNING FOR THE FUTURE Convenience Summit Europe attendees also heard from several speakers on critical industry topics: • Victor Paterno, president and CEO, 7-Eleven, Philippines, shared an update of convenience retail in Asia, where labor is

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less of an issue, in “Future Dimensions of the Convenience Offer.”

• Armour moderated a discussion on “Where Is the Future Happening in C-Retail in Europe?” featuring panelists Carol Chen, global CMO and senior vice president electromobility, Shell; Anne-Laure Gex-Plettner, global group growth formats director, Carrefour; and Anna Grabowski, executive vice president and chief commercial officer, � Zabka Polska.

• “Winning the Future,” featured a conversation between Armour and Jesper Østergaard, CEO, Reitan Denmark.

• A panel discussion with the 2021 Convenience Retail Award winners led by Director of NACS Europe Mark Wohltmann included Hans-Olav Høidahl, executive vice president Europe, Circle K Norway, winner of the 2021 Technology Award; Frank Ellingjord-Dale, sustainability manager, NorgesGruppen/SPAR Norway, winner of

the 2021 Sustainability Award; and Brain Donaldson, CEO, Maxol Group, Ireland, winner of the 2021 Best of the Best Award.

• Berta Cabello Calvo, director of refining transformation, Repsol, presented “A Newfound Future for Liquid Fuels,” including a discussion of e-fuels.

• Jordi Rua Gonzalez, global director solution strategy—retail and consumer goods, Microsoft, Italy, presented “The Future of Technology and Its Impact on C-Retail.”

The NACS European Convenience Retail awards gala reception and post-gala reception, both co-hosted by NielsenIQ, and the gala and awards, sponsored by The Coca-Cola Company, Dover and Gilbarco Veeder-Root, capped off the summit.

Kim Stewart is editor-inchief of NACS Magazine and editorial director of NACS. She can be reached at kstewart@convenience.org.

Sometimes, the grass really is greener.

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Come see what the hype is about. visit invenco.com/nacs for more details.

secure payment processing and customer engagement solutions

How Cash at the sco can ease labor issues It’s 2022--Retailers have recognized the value of selfcheckout technology and the benefits it will bring to their stores including easing labor shortage problems, improving the customer experience, and, of course, increasing the bottom line. Now you need to consider how to deploy your self-checkout to best suit the needs of your stores and your customers; the big question is— do you automate cash, or go completely cashless?

lead customers to perceive unfairness—why should they wait in line while the card paying customer can breeze right through? It’s not worth the risk alienating such a large portion of your customers.

Card-only self-checkouts will still require a cashier to handle all cash payments, increasing the likelihood that lines will continue to be long at rush hour, and risk customers walking out without purchasing. 41% of customers will abandon their purchase if they see a long line, and one bad experience can sour customers on your entire business. Almost half of consumers avoid a specific store if they have to wait longer than 5 minutes. No one wants to lose business due to customer dissatisfaction, and these lines can be effectively eliminated by deploying cash automation with self-checkout.

41% of customers will abandon their purchase if they see a long line

You may be leaning toward cashless—it’s less costly upfront, and card payments seem more like “the future.”

Let’s examine that assumption—can you get the full ROI you expect from your self-checkout without adding cash?

First consider from the perspective of the speed of service; self-checkout will move your customers through the line faster and eliminate long lines at peak times of day. If you’ve only automated cashless payments you haven’t solved the complete problem, and will not be able to repurpose cashiers to take on additional store related tasks, like cleaning, stocking shelves, etc. Stores that struggle with staff shortages will find relief by allowing their customers to checkout without their assistance, ensuring only one cashier is required to ring up ageverified products.

47% of all purchase values under $25 are paid in cash Next, think about your customer’s experience. For the average purchase in convenience stores, consumers overwhelmingly choose cash; 47% of all purchase values under $25 are paid in cash. The percentage of cash usage in your stores may be even higher given that the average c-store transaction is between $3.75-9.00; recent studies report around 40-50% of purchases are made in cash. In addition to preferences, the Federal Reserve estimates 20-28% of the population is currently “un-banked,” or “under-banked,” and do not have access to card payments. Cashless only self-checkouts could

Lastly, cashless processing isn’t always as cheap as it seems to be. There’s a good chance cash payments cost less as a percentage of your revenue than cashless.

Driving customers to cashless may actually increase costs and negatively impact profit margins.

In order to fully reap the benefits of your self-checkout deployment you need to include both cash and cashless payments. Cash automation makes it a well-rounded solution and delivers a superior ROI for your business.

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CPI is a provider of payment solutions with 30 million devices in operation, processing 40 million cash payments and powering 4 billion transactions each week to keep your stores productive and give you piece of mind.

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© 2022 Crane Payment Innovations. All rights reserved.

CranePl.com

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 2021.

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

NEW TO THE INDUSTRY

True North Beverage True North Pure Energy Seltzer

Introducing True North Pure Energy Seltzer

True North goes beyond the average seltzer (also known as sparkling water). Our plant-based energy blend is infused with natural caffeine from plants such as Guayusa, Ginseng, Guarana, and Green Tea. But we didn’t stop there. We wanted to give you the added benefit of an immunity boost so you could feel good about fueling your body with everything it needs to keep you going on your journey. We kept all the stuff out that you don’t need, so you won’t find any sugar, nor sweeteners of any kind. We also stayed away from artificial flavors or colors. When we say natural, we mean it. Our products do not contain any chemicals or GMO’s. True North gives you the purest of energy for your next adventure.

For more information, call (844) 538-7742 and visit www.truenorthenergy.com

72 AUGUST 2022 convenience.org

NEW TO THE INDUSTRY

NEW DESIGN

Bidi Vapor, LLC

Federal Industries

BIDI® Stick

Vision Series

11 Flavors Derived from Tobacco

Engineered to Inspire

Premium, innovative, and sustainable. These are key qualities of the BIDI® Stick, a

A fresh spin on proven quality, the Vision Series is sure to impress on every level – from its sleek contemporary design, to its ease of operation and unparalleled reliability. By combining an elegant Italian inspired aesthetic with American ingenuity, Vision Series sets a bold new precedent in food merchandising that elevates product appeal and maximizes profits. With Heated, Non-Refrigerated, & Refrigerated offerings, you’ll find everything you need to gain a competitive edge. Visit us at www.federaind.com or call at 800-356-4206.

self-contained e-cigarette that is available in 11 flavor variants with nicotine derived from tobacco. Designed and engineered to deliver adult consumers 21 and over a unique and premium vaping experience, the device comes in a single pack, 10-pack cartons and a 100-pack acrylic display case. The components of the BIDI® Stick are 60%-95% recyclable, utilizing only high-grade, high-quality, sustainable components.

For more information, visit http://wholesale.bidivapor.com.

NEW DESIGN

D|13 Group D25 Sink System

Elevate Your Restroom Experience

Eliminate the need for messy and costly paper towels and keep people coming back by installing the brand new D25 Sink System, featuring the XLERATORsync® Hand Dryer from Excel Dryer in your business’ restroom. The sleek D25 will enhance any modern restroom as it provides a streamlined and touchless experience for people to conveniently wash, rinse and dry their hands hygienically and effectively—all in one place. The D25 Sink System is available for a quick and easy purchase and a speedy installation. Reach out to us online (www. exceldryer.com/contact) or call 1-888-670-3107 to learn more.

NACS AUGUST 2022 73

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NEW TECHNOLOGY NEW TO THE INDUSTRY

D13 Group......................................................................... 73 Ferderal Industries......................................................... 73 NEW TO THE INDUSTRY

Bidi Vapor LLC................................................................ 73 True North Beverage......................................................72

NACS 2021 NACS Show On-Demand Education Session Packages

On-Demand Education Avaliable More than 40 education sessions took place at the 2021 NACS Show, offering insider knowledge retailers need to compete and thrive in these tumultuous times. We have carefully curated 4 on-demand digital packages for you to choose from—ranging from access to the entire 2021 suite of NACS Show education sessions to the top 10 most popular sessions to our EV and thought leadership packages. Take this opportunity to revisit and immerse yourself in all the NACS Show education has to offer! Visit www. nacsshow.com/Sessions/Education-Sessions/Sessions-On-Demand.

74 AUGUST 2022 convenience.org

of 2021 Data

What’s next in convenience and fuel retailing and how can you build on the future?

For more than 50 years, the convenience and fuel retailing industry has relied on the NACS State of the Industry Report® to answer this question and more.

4 Understand the ‘big picture’ with data and analysis 4 Maximize effectiveness and profitability with access to data from more than 27,000 convenience stores across the United States.

4 Benchmark against top performers in the industry and determine key drivers to their success.

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GAS STATION GOURMET

Amazing Graze

The “modern-day Golden Girls” behind this c-store are passionate about charcuterie boards and fresh sandwiches.

BY AL HEBERT

C

harcuterie is a French word that has worked its way into our modern food vernacular. It’s often thought of as food with a flare that adds a bit of elegance to any gathering.

Some folks feel it’s fancy. One might not think that charcuterie would pop up at a gas station, but that’s just what customers of Amazing Graze in Poulsbo, Washington, will find and more.

Four ladies introduced charcuterie to the Poulsbo c-store world in 2021. Amy Gouldthread, Karen Schwarz, Cindy Santana and Deborah Riley, who had built a reputation as caterers, partnered on the new venture. The founders of Amazing Graze had a busy 2020 holiday

Charcuterie boards add a bit of elegance with assorted meat, cheeses, bread, fruit and veggies.

76 AUGUST 2022 convenience.org

Inside Amazing Graze—here the magic happens.

catering season, then when things slowed down in January, Gouldthread tossed out the idea of opening a shop.

Riley, as it turns out, used to manage the Northwest Deli Mart inside a Mobile gas station, which also housed a Subway franchise but had since closed.

“Deborah used to run this gas station.

She said the space had been empty for two years. The owner gave me a good deal on rent,” said Gouldthread.

They stuck to the foundation that had made them successful caterers.

The business continues to cater events and corporate gatherings, creating ­charcuterie trays, box lunches and grab-n-go individual charcuterie boxes all made with fresh, quality ingredients.

The charcuterie boards appeal to the eye and palate with an assortment of meat, cheeses, bread, fruit and veggies.

“I use imported pepperoni and salami,” Gouldthread said. “I use mild Coppa. It’s a cured salty ham with lots of spices. People like the silky texture, and it’s a sweet and salty taste,” she explained. “We house roast all of our meats.

I put in fresh turkey each morning. It’s

the same with the roast sirloin and the ham. I smoke my own pork and my own brisket,” Gouldthread said adding, “They’re getting non-processed meats for the charcuterie sandwich boards.”

Customers taste the difference when fresh ingredients are used. Amazing Graze is committed to offering the very best flavor.

“You can’t go anywhere and find meat like this,” Gouldthread said. She recalled a customer’s reaction when ordering a turkey sandwich for the first time. “I lifted the lid to get the meat and the customer said, ‘That’s really turkey.’

Yep, it’s fresh carved turkey breast right off the bone. It’s Thanksgiving on a roll.

It’s called Gracie’s Special.”

BEYOND THE BOARD This creative quartet offers unique sandwiches with ear-catching names.

The meatball sub is a great example. “‘Balls To The Wall’ is our top seller right now. It’s our house-made meatballs and sauce. We put sauce on each side of the bread and then, 3–4 meatballs and sliced provolone. On the other side of the bun, I put Parmesan and oregano,” she explained.

There’s a definite charm about a sandwich named after a customer.

“A customer named Kirk came in and asked us to add pepperoni along with ­jalapeños and pepperoncini peppers to the Balls To The Wall. We did and named it Kirk’s Kick-A** Meatball Sandwich,” shared Gouldthread.

People who know sandwiches know how important the bread is to the perfect taste experience.

Amazing Graze founders Deborah Riley, Amy Gouldthread, Karen Schwarz and Cindy Santana.

“My California Crunch Bread is shipped from California. It’s a type of Dutch Crunch Bread, kind of sweet like a French roll,” Gouldthread explained.

Just before it goes into the oven it is topped with a rice flour paste. If you listen carefully, you can hear it crackle as it bakes. It’s crunchy on the outside and soft and fluffy on the inside,” she said.

Value and portion size are important, of course, and although the cost of ingredients is going up, Amazing Graze isn’t willing to compromise on the final product. Sandwiches are about six inches long, six inches high and weigh about a pound when finished.

“People watch as the sandwich is made, and they’re surprised at the size.

I want to make sure the customers get their money’s worth,” Gouldthread said.

“Customers don’t walk away hungry.

They say, ‘I ate half for lunch and the other half for dinner.’ You can spend the same amount of money here as you would at a fast-food chain, maybe a little more, but have fresh food that’s a healthier choice,” she said.

The box lunch is popular. It includes any sandwich with an 8-ounce side of soup or salad and a fresh-baked cookie.

No surprise here, the cookies are baked from scratch. Each week, the cookie flavors change.

HEART AND SOUL—AND COMMUNITY “I put my heart and soul into everything I cook. I’m up all night cooking,” Gouldthread explained. The process of smoking the meat begins in the evening, then, she naps from 1–4 a.m.

Gouldthread said, “There’s so many restaurants out there that I feel are institutional. It’s the same old food.

They’re doing something for a buck.

High-end steak houses are great, but they’re impersonal.”

Customer satisfaction is not just the rule here, it’s a passion.

“I thank customers, and I want them to be 100% satisfied,” she said, adding, “If someone doesn’t like it or it comes out bad, I take it personally.”

Neighborhood c-stores need strong local support and Amazing Graze has earned it. “We have an apartment complex behind us. Residents come every day for meals. They call and ask us to put things aside. We have a tire shop next door, and they order. All up

Gouldthread proudly displays her sandwich creation at Amazing Graze, where customer satisfaction is a passion.

and down the strip we are constantly bombarded with orders,” she said.

People who live and work along Viking Avenue know there’s something special about Amazing Graze. Success is always about hard work. Partners Gouldthread, Schwarz, Santana and Riley love creating great food together.

“We call ourselves the modern-day Golden Girls. We act just like them, too,” Gouldthread said.

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures.

Find him at www.

GasStationGourmet.com.

NACS AUGUST 2022 77

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS

Packaged sweet snacks accounted for

$2,026 in sales per store per month in 2021.

Source: NACS State of the Industry Report of 2021 Data.

Driven by seasonal flavors and innovative combinations, consumers are returning to packaged sweet snacks.

BY SARAH HAMAKER

78 AUGUST 2022 convenience.org

Getty Images/Lew Robertson

A Taste for Sweetness

Industry Sales

% of In-Store Sales

T

he year 2020 wasn’t a sweet one for packaged sweet snacks.

Like many other center-store categories, packaged sweet snacks struggled. But 2021 saw recovery for the category with sales up 14.3% year over year, according to the NACS State of the Industry (SOI) Report of 2021 Data.

Monthly CSX data show sales have recovered past the declines experienced in 2020 and are more closely mirroring the monthly sales figures from 2019.

“Part of this is simply the recovery of many in-store categories as trips and transactions increased from 2020,” said Jayme Gough, research manager, NACS. Packaged sweet snacks accounted for 1.12% of in-store sales in 2021, an increase of 0.06 point from 2020, according to the 2021 NACS SOI Report.

“The sweet packaged goods category in the c-store channel is up more than 11% in dollar sales compared to a year ago,” said Tina Lambert, vice president, insights, innovation and activation, Hostess Brands LLC. “Convenience store consumer traffic declines during COVID have been the biggest shortterm challenge to growth, but we are incredibly pleased to see traffic is beginning to return to pre-COVID levels.”

NieslenIQ data indicate that total U.S. convenience packaged sweet snacks sales accelerated 8.4% in 2021 compared with 2020—a unit increase of 3%. This small category also produced $2,026 in sales per store per month in 2021, with margins for the category jumping year over year from 44.10% in 2020 to 45.44% in 2021, according to the 2021

NACS SOI Report. “This helped boost category gross profits 17.7% to a total of $921 per store per month in 2021,” Gough said.

SWEETNESS CHALLENGES As the category rebounds, c­ hallenges to growth remain. For Duchess convenience stores, the biggest barrier to increased sales in packaged sweet snacks has been inventory constraints.

“We have found many out-of-stocks are hindering the growth of this category,” said Nathan Arnold, director of marketing for Englefield Inc., which owns and operates the 120-unit chain based in Heath, Ohio. “In addition, fluctuating price points have made some consumers change behavior to purchase one instead of opting for a twofer price.”

At Mighty Moose Marts in Keene, New Hampshire, the store has seen gross margin grow for its own-brand packaged sweet snacks compared with national brands. “For example, we know that Hostess spends a lot on marketing, and we benefit from the brand awareness and loyalty they have built,” said Chris Rietmann, owner, Mighty Moose Marts. “So, for us, it’s a matter of balancing the well-marketed sweet snacks against our self-packaging options in order to continue making a profit in both.”

INNOVATION New flavor profiles have consistently driven sales to the category. “Innovation in packaged sweet snacks was paused to some degree during 2020, but manufacturers are back with new

1.06% 1.12% 2020

2021

Avg. Monthly Sales/Store

$1,773 $2,026 2020

2021

% of Stores Selling

99.3% 99.3% 2020

2021

Source: NACS State of the Industry Report of 2021 Data

Part of the fun of the sweet snacks category is the limited-time offers.”

NACS AUGUST 2022 79

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS Per Store, Per Month Sales

n 2019

n 2020

n 2021

n 2022

$2,851

$3,000

$2,500

$2,000

$1,500 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

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.

80 AUGUST 2022 convenience.org

flavors, protein- or caffeine-enhanced products and other items specific to particular dietary restrictions, such as vegan or gluten-free,” Gough said.

Consumers still expect the tried-andtrue flavors in the category in addition to wanting to taste new combinations.

“While classic flavors such as vanilla, chocolate, strawberry, caramel and peanut butter still dominate, consumers enjoy trying something different and having new flavor experiences,” said Penny Patterson-Smith, senior vice president, snacking, Flowers Foods

Inc. “Butterscotch, birthday cake and snickerdoodle are some of the sweet treat flavors currently on the rise.”

New fruit flavors like mango and line extensions of existing flavors, such as McKee Foods Corp.’s Little Debbie Mini Zebra Donut Snack Cakes, have been popular in the category at Duchess stores. “A favorite flavor profile like Zebra can now be found in additional items,” Arnold said. Caramel, mint and fruit have been popular packaged sweet snacks flavors at Mighty Moose Marts as well.

Other flavors performing well of late focus on sweet breakfast tastes, like lemon and cinnamon, according to Hostess. The brand launched lemon into convenience stores as a single-serve option in Hostess Baby Bundts in late 2021 to meet demand.

Arnold also sees customers gravitating toward protein-rich snacks, which have become a big focus for many brands. Caffeinated items have been popular, too, even in donuts, “but our customers have been less inclined to grab those items as opposed to protein,” he said. “Vegan and other dietary restriction products have been less requested in our area,

Michael Burrell/Getty Images

Source: CSX LLC; csxllc.com

Subcategory Performance Avg. GP$/Store

Gross Margin %

2020

2021

2020

2021

2020

2021

2020

2021

Snacks Cakes/Pastries/ Desserts

46.2%

44.3%

$819

$897

$348

$388

42.49%

43.23%

Muffins, Donuts

31.7%

33.2%

$561

$673

$252

$320

44.92%

47.51%

Cookies

22.1%

22.5%

$393

$455

$182

$213

46.31%

46.73%

100.0%

100.0%

$1,773

$2,026

$782

$921

44.10%

45.44%

Packaged Sweet Snacks

Total

Percent of Sales

Avg. Sales/Store

Vicm/Getty Images

Source: NACS State of the Industry Report of 2021 Data

but gluten-free continues to be a product category that select customers are reaching for, although we haven’t seen many recent sweet snack product introductions that feature this callout.”

As the demand for energy-boosting food and beverages continues to grow, Hostess launched Hostess Boost Jumbo Donettes in the c-store channel as an “alternative source of caffeine and to give adults a grab-and-go way to jumpstart the day,” said Lambert.

“We have offered a few protein- and caffeine-enhanced products and seen some excitement from consumers, but it hasn’t yet manifested itself in a strong subcategory,” added Rietmann.

“However, we expect this to continue to grow.” Mighty Moose Marts also dabbles in this enhanced-foods segment because “we realize we must have some products in our core categories that meet the dietary needs of customers.”

SEASONAL SWEETNESS As with other categories, seasonal flavors and products in packaged sweet snacks are popular. “Part of the fun of the sweet snacks category is the limited-time offers,” Arnold said. “We see many of our consumers purchasing and requesting the newest release in sweet snacks,” he said.

“The Tastykake brand has a wide variety of seasonal flavors,” Patterson-Smith of Flowers Foods said. Tastykake designs its packaging to highlight the seasonality of the flavors and capture consumer attention for the limited-time offers. “Consumers tend to favor lighter fruit flavors in the spring and summer

The future is strong for packaged sweet snack products, and it gets better every day as more people return to the office and are back on the road postpandemic.”

NACS AUGUST 2022 81

CATEGORY CLOSE-UP PACKAGED SWEET SNACKS

months and shift to warming, comforting flavor classics like caramel apple, pumpkin and mint chocolate in the fall and winter,” Patterson-Smith said.

That lines up with what Duchess customers have gravitated toward. “Pumpkin Spice is always a huge hit. Candy, coffee, donuts and other sweet snacks that fit this flavor profile are always very popular in the fall,” Arnold said. “We have seen some fruity summer sweet snacks, and peppermint and chocolate in the winter do very well, too.”

To ensure customers are aware of seasonal offerings, Hostess provides retailers with displays to highlight their brands and the wide range of seasonal flavors, such as pumpkin and ginger-

Contact Information

Page

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com BIC Corp................................................................................... 17 newrequest.bic.com Cash Depot................................................................................3 (800) 776-8834 sales@cdlatm.com www.cdlatm.com Charleys Philly Steaks....................................................................... 68 www.charleys.com CHS Inc. (Cenex).................................................................................57 www.cenex.com/businessopportunities

Cool New Products Guide.............................................................72-74 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Contact Information

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

Page

GOYA Foods Inc.................................................................................. 59 salesinfo@goya.com www.goyatrade.com The Hershey Company............................................ Back Cover www.hersheysolutions.com Invenco.............................................................................................. 69 www.invenco.com/nacs ITG Brands................................................................................ 9 www.itgbrands.com Johnsonville Sausage LLC..................................................................25 www.johnsonville.com Liggett Vector Brands Inc...................................................... 51 www.liggettvectorbrands.com McLane Company ....................................................................11 www.mclaneco.com NACS Asia Convenience Retail Awards............................................ 83 www.convenience.org/CSA NACS Retail Membership.................................................................... 4 www.convenience.org/membership

Crane Payment Innovations.........................................................70-71 www.cranepi.com

82 AUGUST 2022 convenience.org

Sarah Hamaker is a freelance writer, NACS Magazine contributor and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

NACS Show....................................................................................42-43 www.nacsshow.com

Contact Information

Page

NACS State of the Industry Report....................................................75 www.convenience.org/SOIReport OPIS.........................................................................................67 www.opisnet.com Premier Manufacturing Inc........................................................ 5 & 49 www.gopremier.com Swedish Match North America (Game)................................. 15 (800) 367-3677 www.smna.com Swedish Match North America (General SNUS)....................35 (800) 367-3677 www.smna.com Swedish Match North America (White Owl).........................23 (800) 367-3677 www.smna.com Swedish Match North America (Zyn)....................................27 (800) 367-3677 www.smna.com Trion Industries Inc..............................................................................7 (800) 444-4665 www.triononline.com TY Inc.........................................................................Inside Back Cover www.ty.com

Pamela D. Mcadams/Getty Images

ADVERTISER INDEX

bread in the fall and raspberry lemonade in the summer.

These retailers and suppliers agree the category will continue to rebound as convenience store traffic increases. “The future is strong for packaged sweet snack products, and it gets better every day as more people return to the office and are back on the road post-pandemic,” Patterson-Smith said.

Asian Convenience

Retailer of the Year Presented to

APCO 24/7 Café Wangaratta AUSTRALIA Sponsored by

Congratulations to the 2022 winners!

Asian Convenience Retail

Sustainability Award Presented to

Pilipinas Shell Petroleum Corporation PHILIPPINES Sponsored by

Asian Convenience Retail

Technology Award Presented to

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BY THE NUMBERS

More Than Plain Vanilla Summer is prime time for ice cream, and sales in the convenience channel are on the rise. In 2021, packaged ice cream growth built on 2020’s gains, which were in the double digits as many customers turned to indulgent categories throughout the lockdown phases of the COVID-19 pandemic. According to the NACS State of the Industry Report of 2021 Data, packaged ice cream sales increased 4.6% in 2021 compared with 2020, and gross profit for the category grew 5.4% year over year.

To maintain that momentum, retailers need to keep a pulse on trends within the category and ensure display placements are front and center during the warm summer months.

The most popular flavor for the channel continued to be vanilla in 2021. While all of the top 10 flavors grew sales by more than 20% from 2019 to 2020, three flavors—vanilla, halfbaked and butter pecan—were the only flavors to decline in sales in 2021 compared with 2020. The flavor with the largest growth from 2020 to 2021 was strawberry cheesecake, which saw a 12.0% increase in sales from the prior year, followed by cookies and cream, which was up by 8.6%.

TOP 10 MOST POPULAR PACKAGED ICE CREAM FLAVORS IN CONVENIENCE 1.

Vanilla

2. Chocolate 3. Chocolate Chip Cookie Dough 4. Half Baked 5. Butter Pecan

7. Cookies and Cream 8. Strawberry Cheesecake 9. Cherry Garcia 10. The Tonight Dough

6. Chocolate Fudge Brownie

Published every year since 1972, the NACS State of the Industry Report is the convenience and fuel retailing industry’s premier benchmarking tool and the most comprehensive collection of data and trends. Retailers rely on the report to improve their operations and better understand what’s driving key performance metrics. Explore package options for purchase at www.convenience.org/SOI.

84 AUGUST 2022 convenience.org

Juanmonino/Getty Images

Source: NielsenIQ, Total U.S Convenience 2021 Sales, 52 weeks ended January 1, 2022

you’re gonna wanna sit down for this The fastest selling impulse item in the world. For information please call Peter Olbrys.

Phone: 630-432-3329 email: polbrys@tymail.com