Page 1

BEST WISHES TO DOUG HARTL ON HIS RETIREMENT PAGE 10

WHAT YOU NEED TO KNOW ABOUT CANNABIS LEGALIZATION PAGE 22

PROPOSED MINIMUM WAGE INCREASE FOR ONTARIO PAGE 15

BLUEPRINT FOR FOOD SERVICE PAGE 20

GETTING THE MOST OUT OF LEAK DETECTION SYSTEMS PAGE 60

ENDING CARWASH PILE-UPS PAGE 47

SEPTEMBER | OCTOBER 2017

PM41670539

Canada’s most read Canadian owned and operated Convenience, Retail Petroleum and Carwash Publication


delicIous to drink. delicious to go. NEW

2 JULY/AUGUST

natrel.ca


Table of Contents Cover Story

Petroleum and Carwash

Industry News

Instore and Nutrition

42 51 58 35

125 Years For OPW – From Cincinnati startup to global leader

Washtalk – St-Pierre Gas & Car Wash Ltd. open for business

Forecourt Insights – Canada’s biofuel mandate may be increasing

04

47

07

WCSA Report – Credit card fees

Blueprint for Foodservice – New regular feature about foodservice programs

60

08

31

62

10

37

15

55

Publisher’s Message – Time to look forward to the year ahead

05

Editor’s Message – New Editor Joins The Team

Ending Pileups – Full-tunnel collision prevention Leak Detection – Get the most out of leak detection systems Fuel Dispenser Technology – Retail fuel dispensers have come a long way

65

Petroleum Spill Control – Training staff for emergencies

Cold-Vaults – How to improve cold-vault fortunes

20

NACDA Update – Don’t miss the 2017 Summit in Quebec City

Medicated Candy – Musthave-in-stock product for convenience

Best Wishes – Doug Hartl retires at end of 2017

LED Lighting – Keeping up with new technology

OCSA – Speaking out about proposed minimum wage increase

South of the Border – Considerations in purchasing capital equipment

22

Cannabis Legalization – Everything you wanted to know

26

Sugared Beverages – Canadian Beverage Association discusses beverage taxes

Upcoming Events September 26-28, 2017 NACDA National Convenience Industry Summit (NCIS), Quebec City, QC www.nacda.ca October 17 – 20, 2017 NACS/PEI Show

What’s New? McCormick Place Chicago, IL www.NACSShow.com February 20 – 22, 2018 WPMA Expo Mirage, Las Vegas www.wpmaexpo.com

April 26 – 28, 2018 The Car Wash Show 2018 Las Vegas, Nevada www.thecarwashshow.com

69 Industry Updates

CONVENIENCE & CARWASH CANADA 3


Publisher’s Message

As we come into the fall season it’s time to look ahead to the year ahead. What will your business look like? What new ideas

will come to fruition? What products will you add? Have you asked your customers what they’d like to have offered? Your best ideas might just come from them and to keep them coming back you want to make sure you have what they want. This issue we are introducing a new feature that will run every issue; Blueprint to Foodservice. After telephoning and asking retailers across the country what they’d like to read more about we were told Food Service. They don’t want an overview of the entire category, they wanted details. So, read on. Every issue we will offer one portion of this category and delve into it, what it is, why it’s important and how to setup and move forward. We’re asking manufacturers to provide details on their equipment and products that we will in turn add to a special, new section on the Convenience & Carwash Canada website that you, our readers can download and use to begin building your new food service section of your store. OPW, Proctor & Gamble, H.J. Heinz, Johnson & Johnson, CocaCola, PepsiCo., Kellogg, Chevron, Core-Mark. What do all of these companies have in common? They are all more than 100 years old and this issue we’d like to celebrate the 125th anniversary of Ohio Pattern Works & Foundry Company, known worldwide as OPW. If you’re wondering what’s happening with credit card fees Andrew Klukas of the Western Convenience Stores Association brings you up to-date. I’d also like to introduce you to our new editor Angela Altass. Angela brings over 30 years of experience as a writer and editor. Having worked with Angela 15 years ago I am excited to work with her again and look forward to what she brings to our table. This month marks the one year anniversary of my dear friend P.D. McLaren who I’d like to remember by dedicating this issue of Convenience & Carwash Canada to. As always, your business is my business. Without you, our reader, we would have no purpose. We welcome your input and suggestions and remind you that if you have an idea for a special feature or article please don’t hesitate to contact me at Bjjohnstone@convenienceandcarwash.com or call me at 204-489-4215

Brenda Jane Johnstone Publisher

4 SEPTEMBER/OCTOBER

PUBLISHER Brenda Jane Johnstone bjjohnstone@convenienceandcarwash.com SALES Cody Johnstone Vice President, Sales 416-838-4674 codyj@convenienceandcarwash.com Brenda Jane Johnstone 204-489-4215 bjjohnstone@convenienceandcarwash.com MANAGING EDITOR Angela Altass editor@convenienceandcarwash.com DIGITAL/SOCIAL MEDIA Eva Chambers echambers@convenienceandcarwash.com DESIGN AND PRODUCTION Doug Coates, Edge Advertising Keith House, Ad Production EDITORIAL ADVISORY BOARD Ian Burton, Istobal Scott Findlay, Core-Mark Int’l Kim Hansen, MI Petro David Hoy, Peninsula Co-Op Andrew Klukas, WCSA Dave Watson, The Chamois & Convenience Store Ltd. CONTRIBUTING WRITERS Angela Altass Meline Beach Dave Bowen Richard Browne John Espley Dennis Garces Jim Goetz Brenda Jane Johnstone Andrew Klukas Keith Moye Pete Ness Uri Rainisch Trinity Stennfeld Peter Sutherland CIRCULATION James Gordon subscriptions@convenienceandcarwash.com WEBSITE www.convenienceandcarwash.com PUBLICATION MAIL AGREEMENT No: 41670539 Return Undeliverable Canadian addresses to: Circulation Department 543 Borebank Street Winnipeg, MB R3N 1E8


Editor’s Message

Working with Convenience & Carwash Canada is a privilege as this is an industry with hard working and knowledgeable people. When I think of this industry and the people in it, I find the word that comes to

front of mind is tenacity. Indeed, it is abound with examples of persistence, tirelessness, endurance, stamina and determination. The persistence to continue to exist despite obstacles and challenges is commendable. As Convenience & Carwash Canada’s new editor, I am excited to play my part in continuing this magazine’s dedication to serving this industry. I have already spoken with some of you through various articles I have written and am looking forward to connecting with many more as well as learning more about this fascinating industry. The new feature, Blueprint to Foodservice, is an example of how we are reaching out to our readers to provide the information that you are looking and asking for as you run your businesses. Be sure to take the time to check it out and let us know what you think. If there are other issues or aspects of your business you would like us to delve more deeply into, reach out and let us know. After all, nobody knows this business better than you do. As we bunker down to prepare for another Canadian winter, this is a good time to reflect on the state of the industry and the evolution of your business. Don’t forget to make time regularly to keep informed about what is happening by keeping in touch with industry associations and be sure to visit www.convenienceandcarwashcanada.com where you can browse current and past issues, check up on upcoming events and be on top of the latest information affecting this industry and your business. As I have traveled through various provinces and stopped in at many convenience stores along the way, I have been pleased with the reactions I received any time that I mentioned Convenience & Carwash Canada. I am determined to keep this magazine as a key source of industry information and to continue being the place you can trust to you give you the facts and details that you need moving forward. Angela Altass, Managing Editor

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6 SEPTEMBER/OCTOBER


by Andrew Klukas

WCSA Report CREDIT CARD FEES CHARGED TO RETAILERS IN CANADA ARE AMONG THE HIGHEST IN THE WORLD.

According to a study by the Canadian Convenience Stores Association, these fees represent an average cost of $36,000 annually to Canada’s convenience store owners (totaling more than $825 million annually for the industry). This is equivalent to the average profit earned at each site through hard work.

These charges are in no way a "generous" discount rate to a reflection of the true costs 1.5 per cent on average, a rate of electronic transactions, three to five times higher than as Interac proves this by the countries mentioned. A year only charging a few cents later, some retailers have noticed per transaction while credit a very slight decrease in their cards force us to pay a hefty rates. However, MasterCard has percentage of up to four per acknowledged that it has not yet cent of each transaction – met their 1.5 per cent average the second highest rates in rate and this should cause the world following the US. government great concern. It appears the credit card According to the Competition Bureau, Canada's credit card companies are using the issuers have set up a perverse average as a means to increase system that thwarts the normal rates to some retail sectors as rules of the marketplace and a means to cover a much lower costs consumers billions of rate they agreed to with a few individual large retailers. To dollars annually. This abusive, rent-seeking illustrate, Visa itself recently behaviour on the part of the ran full-page ads in media credit card companies is a across the country last year, consequence of Visa and pointing out that it could not MasterCard’s market dominance, give in to Walmart’s demands as they occupy up to 90 per cent for fees lower than local grocery of the credit card volume in stores, convenience stores and Canada. It represents a market other small businesses, because failure that must be addressed by that would mean Walmart was government through legislation “using their size and scale to give for the economic and social good themselves an unfair advantage.” of Canadians as a whole, not This is now exactly what has happened. merely our members. The inability to leverage Australia and Europe have passed regulations to cap these preferential interchange rates fees at 0.3 per cent and 0.3 such as those negotiated by per cent respectively. In 2010, American corporate giants Ottawa grudgingly announced Costco and Walmart puts

smaller retailers at a decided disadvantage. When both MasterCard and Visa report to Ottawa on their self-audits on their voluntary reduction targets, the unknown special rates for U.S. giants Walmart and Costco are simply mixed into those results to produce a lower overall average. That means the results themselves are not only disingenuous, but that small business is indeed supporting the larger retailers. The over 7,000 convenience, retail petroleum and carwash sites across Western Canada work very hard every day, generating thin profit margins every year. We would much prefer that these largely family-run stores could invest the bulk of those lost $36,000 in wages, job creation, new equipment or lower prices for customers than to see them absorbed by ravenous credit card companies. Canadian retailers, particularly smaller businesses, need one regulated rate – a rate that is fair and transparent – similar to what we find in Australia and the EU. Efforts to address high credit card fees on merchants got a boost last September when the Federal Finance Minister announced a review of those fees. The goal of the review is to ensure that there is, in fact, adequate competition and transparency for Canadian businesses and consumers when it comes to the fees they incur when using credit cards. The Minister’s announcement resulted in the suspension of a private Members Bill tabled by federal MP Linda LaPointe (Lib) giving the Minister of Finance the authority to set credit card fees. Madamme LaPointe has consulted extensively with representatives from the Small Business Matters Coalition – a group of associations representing 98,000 Canadian small businesses. The coalition includes the Canadian Convenience Stores Association, which represents the c-store owners on matters involving federal legislation. Depending on the result of the Minister’s review, Madamme LaPointe may be encouraged to reintroduce the bill. CONVENIENCE & CARWASH CANADA 7


Quebec City: Credit:Steven-Bates

NACDA

THE QUEBEC EXPERIENCE. THE CANADIAN EXPERIENCE. NATIONAL CONVENIENCE INDUSTRY SUMMIT 2017. Set within one of Canada’s most historically significant cities, during a time when we celebrate our nation’s 150th birthday,

the 2017 Summit provides the opportunity to pause and reflect upon our industry’s past achievements while bringing us together to look forward to our future. Together, our industry has constructed a strong foundation upon which we continue to build a sustainable future. The 2017 Summit provides relevant research, inspiring keynote speakers and networking opportunities that offer insight into future opportunities, challenges and trends. Let’s build our future. Together!

Business Sessions

Trade Exchange

The summit program features five business sessions that focus on the matters that affect our members’ business. Speakers like: Carman Allison, who returns to the summit stage by popular demand. Carman shares the latest trends and tells us the stories behind the numbers. With a particular focus on how to respond to retail disruption, attendees come away with some ideas on how to navigate through an ever changing retail landscape. NACDA and CCSA also partner with Kathy Perrotta, Vice President, Ipsos Marketing and Serra Shular, Vice President and IUU Team Lead, Canada to conduct a custom research focusing on consumer “quick-trip” decision making. This includes a qualitative phase engaging consumers in five markets across the country. Results of the research are revealed to attendees of the summit and available to members upon request.

The Trade Exchange is a mini-trade show where each manufacturer has a station to showcase their products. Distributors and retailers across Canada visit to exchange information with manufacturers. This is a platform for developing and building business partnerships. It is an opportunity for manufacturers to meet with retailers and distributors. The primary purpose of the mini expo is to provide an opportunity for manufacturers to touch base and network with senior retailers and distributors for future business.

8 SEPTEMBER/OCTOBER


National Convenience Industry Awards Gala

For the first time, the Convenience Innovation Awards and the Awards of Excellence are celebrated together. On Wednesday, September 27th, individuals and companies are honoured for industry excellence and innovation. The Convenience Innovation Awards recognize top product development in the convenience industry. The program provides a benchmark for leading innovation, recognizes those top products in the industry, and awards suppliers for outstanding research and development. The Awards of Excellence recognize individuals and businesses that contribute to the growth of the convenience industry. The Awards of Excellence ceremony pays tribute to the recipients, acknowledges their accomplishments, and announces their induction into the NACDA Hall of Fame. The 2018 National Convenience Industry Summit will take place in Halifax, Nova Scotia at The Westin Nova Scotian on September 25th to 27th, 2018.

Government Relations Update: Marketing to Kids

In the coming months, NACDA will be working closely with the Canadian Convenience Stores Association on a number of issues, including Bill S-228, Regulation on Marketing of Food and Beverage Products to Children. Our distributors and retailers are concerned about proposed changes to marketing of food and beverage products. Parents and their children are a significant part of our customer base, and despite regularly serving many young Canadians and families, we remain unclear on how changes to marketing or packaging will be implemented at the distributor and retail level. These changes will directly impact in-store communications, marketing, and merchandising, presenting an undue burden to small business owners, who already work hard to design stores that are safe, friendly environments for parents and kids. NACDA and CCSA have already communicated our concerns to government officials and will continue to do so. We will be reaching out to members to ensure that their views are heard.

THE

SAVE

DATE join us in

Halifax, Nova Scotia September 25-27, 2018 The Westin Nova Scotian

NATIONAL CONVENIENCE INDUSTRY SUMMIT

Listen to inspiring and informative speakers, network with colleagues at the trade exchange and celebrate excellence and innovation in the industry.

Don’t miss the industry event of the year

for details visit www.nacda.ca

CONVENIENCE & CARWASH CANADA 9


by: Brenda Jane Johnstone

Saying "Adios” to a veteran of the Western Convenience Stores Association

more than 14 years working for Mac’s Convenience Stores Inc. “THE With Western Division as the manager of security and loss prevention, EXPRESSION Western Canada, Doug Hartl is set to retire at the end of 2017. ‘DOUG, TELL ME WHAT YOU REALLY THINK’ SEEMS TO SUM IT UP.” Hailing from Punnichy, Saskatchewan, Doug, the oldest of six sons raised on and across the prairies, is best known for his take no prisoners mannerisms. Following in his father’s footsteps, Doug joined the RCMP in the Ottawa office beginning January 1972 as a civilian member fingerprint technician, after which followed RCMP training in Regina a year later, followed by a transfer to British Columbia once training was completed. In 1997, after 13 years working as a hostage negotiator in the major crimes division of the RCMP, Doug retired as staff sergeant. Following his retirement from the RCMP, Doug joined the Overwaitea Food Group (Jim Pattison group) with the loss prevention department. This was his first experience working in a retail environment. In 2003, he left Overwaitea to join Mac’s Convenience Stores in Calgary and helped develop the Mac’s Western Canadian security and loss prevention department. “Frankly, I can’t believe he’s actually going to retire,” said Bonnie Birollo, vice president of operations, Mac’s Convenience Stores, Western Canada. During the past 13 years in his role as manager of security, government and customer relations, Doug has certainly been an integral member of the team, notes Bonnie. He has supported three separate vice presidents, countless colleagues, dealers, staff, and customers throughout some often very tough and unique situations. Despite the sometimes challenging confrontations or heated complaints, Doug always displayed a tremendous ability to diffuse scenarios of conflict all the while maintaining his composure and professionalism, said Bonnie. “His efforts within the industry and his contributions within our Mac’s store network h helped our group develop a proactive culture of safety and loss prevention,” said Bonnie. “Frankly,

10 SEPTEMBER/OCTOBER

even more impressive is the fact he has also maintained his wicked sense of humour. He is honestly a rock in the foundation of our Mac’s/Circle K Western Canada team and he will most certainly be missed. Doug is all that… and a bag of chips!” Doug is a say what you think, no holds barred kinda guy. “Doug is very logical, practical and thoughtful in his approach to both business and life,” said Woody Stelnicki, managing director, petroleum, Calgary Co-operatives Association Limited. As a member of the WCSA board, Woody noted that Doug is quick with a laugh. Convenience & Carwash Canada spoke with Doug about his lengthy career and his plans for the future and impending retirement. When asked what he was most proud of during his time working at Mac’s, he stated: “I am proud that I have been instrumental in assisting our employees, our customers and especially our dealers with issues affecting them on a daily basis within the retail environments.” Doug said that one memorable accomplishment was ensuring that a third option was instituted into the late night lone worker regulations with WorksafeBC, alongside Kim Trowbridge, a former WCSA chairman and former Mac’s Western Canada vice president of operations. Here’s what Kim had to say: “Doug is a critical part of the team that turned Mac’s in Western Canada around; from being a c-store bottom feeder to a c-store leader and trendsetter. It is not an overstatement to say that without Doug, the western division of Mac’s would not have reached the heights it has reached. It is also not an overstatement to say that most will only truly understand what Doug did for the western division after his retirement date and the true size of the shoes to fill becomes apparent.” Doug is singlehandedly responsible for introducing


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BEST WISHES DOUG HARTL

“THE RETAIL INDUSTRY IS FAST PACED AND CHANGES DAILY,” SAID DOUG. “REGARDING THE FUTURE OF THE C-STORE INDUSTRY, AND CONSIDERING THE MANY CHALLENGING ISSUES IT IS FACED WITH, I AM VERY OPTIMISTIC.”

programs and procedures under the operations security umbrella that saved the western division millions of dollars during his tenure, said Kim. “Aside from his professional and tireless work covering half the country’s geography as a security coach, auditor and investigator all on his own, he also became a de facto councilor and therapist for individuals in difficult or stressful situations,” said Kim. “He will be missed in the industry for his professionalism in the area of safety and security but also his considerable voice for the whole industry as the chair of the WCSA. With a schedule of travel and on-call work that would crush most people, Doug still found the energy to volunteer his time to the betterment of the industry as a whole. Hats off my friend, you have earned your retirement.” Doug stated that he first became involved with WCSA as a board member in 2005 and then the CCSA board representing WCSA. For the past 12 years, Doug has been involved with the WCSA and spent the last five years as chairman of the board. Working with a committed board, he helped set the stage for a progressive and interactive association whose mandate was and is that of supporting convenience, retail petroleum and carwash operators across Western Canada by offering lobbying efforts for everything from tobacco legislation and sugar free beverages to healthy stores and temporary foreign worker bills.

“The retail industry is fast paced and changes daily,” said Doug. “Regarding the future of the c-store industry, and considering the many challenging issues it is faced with, I am very optimistic.” There is a lot of competition from both inside and out of the c-store industry for companies vying for the same dollar 12 SEPTEMBER/OCTOBER

“Doug will be missed and I wish him the very best in his retirement.” Woody Stelnicki, managing director, petroleum, Calgary Cooperative Association Limited “Working with Doug on the WCSA board, I’ve always appreciated his candor and ultimate pursuit in doing what’s right! Doug’s truthfulness always allowed us to really view the underlying issues and act accordingly. I’ve also admired Doug’s values, as it’s apparent that he puts his family first.” John Crandell, field sales manager, BIC Inc. “We wish Doug all the best in his retirement. Doug’s dedication to the convenience channel and his straightforwardness has been appreciated by all who interacted with him. He well represented Western Canada at all levels of government. His ability to network with other retailers, distributors and the vendor community needs to be used as an industry benchmark. It’s going to be interesting to see which golf course he becomes a member that will tolerate his idiosyncrasies. I’m not sure there are many in this vicinity that will allow golfers to chip from anywhere 80 years out with a putter on every hole. We wish Doug and Poona the long awaited and well deserved time to spend with each other and their family.” Chuck Arcand, corporate director, Canadian marketing, Core-Mark International “Doug Hartl has never been one to seek praise but, rather intently shies away from it. These words will therefore serve as his punishment for leaving us at the end of the year. Doug’s leadership as WCSA chair has been solid and unwavering from the goal of building an association that will help better the lives of those working in the industry. Playing the dual role of chair and WCSA representative on the board of our national partner, the CCSA, while constantly on the road in his service to Mac’s, has required sacrifices from his family, but there was never a moment where he hesitated to stand up and do what was right for the association and the industry. It has been an honour and a privilege to work with Doug as WCSA president. He will be missed by all but he leaves behind a solid and well balanced board that will continue to take things forward.” Andrew Klukas, president, WCSA “I have had the pleasure of working with Doug for the past 10 years both as a WCSA board member and indirectly through various events the Mac’s Convenience Stores were involved in. His knowledge and insight has been of great value to the WCSA board and as the representative of the WCSA board’s position at the CCSA level. I always appreciated his candid and direct approach in relating issues or concerns, keeping it simple and moving things forward in a positive direction. His wealth of experience will be difficult to replace, not to mention his sense of humour; he will be missed by all. Congratulations on your retirement Doug, well deserved.” Jeff Bakun, sales director, Western Canada, Rothman, Benson & Hedges


Doug and Poona Hartl, enjoying the Calgary Stampede

and with the ever-changing rules and regulations set forth by the government, both provincial and federal, the cause for frustration amongst retail chains is ever changing, he remarked. “However, with the commitment and dedication of retailers, vendors and manufacturers, I’m confident that ours is an industry that will persevere and thrive,” said Doug. “I hope that my legacy is that I helped, at least in a small way, to make things easier on the people that actually do the heavy lifting in the industry. To be honest, I always saw my role as a fixer and I never forgot that the most important assets that I was protecting was our own people; those on the front line, the store managers and staff.” The code that Doug lives by and his famous quote of “you can’t fix stupid” was the start and finish to each investigation, notes Sean Sportun, ICPS, manager,

security and loss prevention, Circle K Convenience Stores Central Canada. “I am outspoken because I am passionate about what I believe in and as most people know, I have never been the politically correct type of person,” stated Doug. “The expression ‘Doug, tell me what you really think’ seems to sum it up.” When asked about his plans for retirement, Doug smiled, hugged his lovely wife Poona and stated that after 40 years of marriage he knows Poona is deserving of some travel and they plan on spending as much time as possible enjoying their five grandchildren. He knows slowing down will take some adjustment but he’s confident that he really won’t have any trouble figuring that out. We wish you well Doug and Poona. You will be missed by the entire Western convenience store industry. Thank you for all you’ve done.

CONVENIENCE & CARWASH CANADA 13


14 SEPTEMBER/OCTOBER


OCSA Members Voice Frustrations Over Minimum Wage Increase

The Ontario Convenience Stores Association (OCSA) is speaking out about the Government of Ontario’s plan to raise the minimum wage to $15 per hour and is urging all convenience store owners and those involved with the c-store industry to do the same.

by Angela Altass

NO BUSINESS IN ANY MARKET CAN AFFORD A 32% INCREASE IN MINIMUM WAGE IN 18 MONTHS.

“My expectation is that one organization, like OCSA, can’t win the battle without everyone speaking up,”

states David Bryans, CEO of the Ontario Convenience Stores Association. “Call your politicians, no matter what stripe they are, and tell them how this is going to hurt you. I would encourage and recommend that each of us vent our frustrations with the local MPPs throughout Ontario. Express your concerns and unfairness this political decision has on jobs, costs and future employment, store rationalization or even expansion.” Many of OCSA’s members

are independent family stores, in minimum wage in 18 located across the province months. Tell any corporation of Ontario, operating on thin that we’re going to increase margins, says Bryans. These your salaries by 32 per cent stores are often a source of and they’ll probably close.” local employment opportuOCSA conducted a surnities for students and part vey to gauge membership time workers. feedback on the anticipated “In many cases, when costs impact of the proposed unexpectedly rise, businesses minimum wage increase and attempt to pass costs onto presented the results to the consumers to remain viable,” government during public says Bryans. “But in the con- hearings in July. venience retailing business, Member responses were increasing prices and placing anonymous so the only data costs on the back of consum- that is available on the reers is not an option in a high- spondents is that 61.76 per ly competitive marketplace. cent were independent stores, The bottom line is that no 15.69 per cent were franchise business in any market can stores, 17.65 per cent were afford a 32 per cent increase regional chains and 4.90 per CONVENIENCE & CARWASH CANADA 15


cent were national chains. A large per over a period of time, say a dollar a year centage of respondents (93.14 per cent) for four years, would have been much said that they anticipate that a $15/hour more palatable than 32 per cent over 18 minimum wage will increase the price months.” of the products that they sell, including Twelve years ago, there were 11,300 staples, such as bread and milk. convenience stores in Ontario, notes Bry“We had over 107 responses to the ans. “Now, we’re down to 8,903 and every survey, which probably represents two year, in a vibrant economy, we’re seeing or three thousand stores,” says Bryans. losses of businesses, mainly small, fami“What we learned from the survey is ly-run stores in rural Ontario. We predict that 83 per cent of retailers expect that that this type of minimum wage increase a rapid minimum wage increase will re- will move that faster and we may lose 500 quire employee reduction in the next 12 or 600 stores in the next two years.” As months. Some members forecast more convenience stores sell 76 per cent of all than 250 layoffs within the next year lottery purchases in Ontario, Bryans says and 80 per cent of retailers will be hir- the loss of so many stores would negaing fewer students, totaling thousands tively impact government revenue from of fewer student employment opportu- lottery sales. nities. Retirees, looking to supplement The Ontario Government has stated their pension income through part time that the minimum wage increase is part work amidst rising costs, will also be of a landmark package of proposals to hurt by these changes. All of our retail- help create fair workplaces and better ers forecast increased yearly costs for jobs. This includes ensuring that part their businesses with figures ranging time workers are paid the same hourly from $10,000 - $50,000 for small retail- wage as full time workers for doing the ers to as much as $18.6 million per year same job, and introducing paid personal for one of our largest members.” emergency leave days for every worker. In a 2014 study, the Government of Half of the workers in Ontario who Ontario’s minimum wage panel found earn less than $15 per hour are between that for every 10 per cent minimum the ages of 25 and 64 and the majority of wage increase, youth employment is these are women. negatively affected and lowered by six “Raising the minimum wage is about per cent. creating a fairer, more equal society where Bryans stresses that OCSA isn’t everyone gets to share in our province’s against increasing minimum wage. It’s economic growth,” says Ontario Premier the speed and intensity of this proposed Kathleen Wynne. increase that is their concern. “Rising hydro costs, smaller margins This is the largest increase to minimum wage in Ontario’s history, seeing an increase to $14 per hour on January 1, 2018 and $15 per hour on January 1, 2019, followed by annual increases at the rate of inflation.

OCSA feels that the decision to increase the minimum wage well beyond the rate of inflation will lead to fewer jobs in the province and will put pressure on convenience stores to close locations and reduce employment to remain viable. “The OCSA supported the government’s previous inflation-tied approach to minimum wage increases,” says Bryans. “That model ensured fair and predictable minimum wage increases for workers across Ontario. We still agree with minimum wage rising with the rate of inflation. Even doing this increase 16 SEPTEMBER/OCTOBER

and now rising wages,” states one anonymous respondent to OCSA’s survey. “I will have to cut down my staff, work more myself, will have less to give to local fundraising and may have to shorten store hours. Say goodbye to the small independent business owner.” Another respondent states “this legislation could force our third-generation family business out of business.” Another simply responses: “it will kill my business,” and another comment in the survey point out that “at $6 an hour, I employed 21 people, at $11 an hour I employ 12 people. At $15 an hour I am working on ways to employ six people.” Other respondents comment that they are not opposed to a minimum wage increase but are against raising it “so drastically over such a short period of time,” and add that “everything will have to increase in price to reflect the added costs.” Although he urges everyone to speak up about the proposed minimum wage increase, Bryans doesn’t hold out much hope that the government will back down. “We’re not going to win this battle because it’s an election year coming up in Ontario so I think the ship has sailed,” states Bryans. “The majority Liberal government is going forward no matter how many jobs are lost and businesses closed but we still must speak up. If you don’t get on record then you can’t call someone and tell them that you’re mad. We need to build community awareness.”

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THE CCWC TEAM Let me introduce you to some of the important people that I have the privilege of working with and who make Convenience & Carwash Canada magazine the great publication that it is. We work together to bring you the most informative and interesting articles that we can each issue.

Brenda Jane Johnstone Publisher

Andrew Klukas

Barbara Bowes

Angela Altass

CONTRIBUTING WRITER

CONTRIBUTING WRITER

CONTRIBUTING WRITER

Meline Beach CONTRIBUTING WRITER

Andrew came to the WCSA with graduate degrees in philosophy and public administration, and over a decade of experience consulting for various industry groups on matters related to occupational health and safety, labour market development, and training program development, and evaluation. This variety of skills has served the WCSA well. Andrew is also actively involved in Vancouver’s performing arts scene.

Barbara owns a consulting business, which she began as a sole proprietor and has now grown to include 20 employees and a partnership. Over the 30 years of her career, Barbara has taught university, hosted a radio show on HR issues, authored eight books on leadership and edited many others.

With over 30 years of experience as a news reporter, writer and editor, Angela Altass has covered a wide variety of topics and has met with people from various walks of life. From when she began her career with a daily newspaper in Prince Edward Island in 1983

Meline has leveraged her strategic thinking, analytical, and storytelling abilities from her 20-year corporate communications career to benefit her journey as a freelance writer and content developer.

Barbara says she enjoys writing for Convenience & Carwash Canada because it typically represents small businesses that work directly with customers and which often do not have their own HR Manager.

Angela says that working with Convenience & Carwash Canada magazine has given her the opportunity to connect with hard working professionals in a very resilient industry and she looks forward to continuing to learn more in the years ahead.

Cody Johnstone

Doug Coates

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Cody has been with Convenience & Carwash Canada since 2012. Working on advertising sales Cody brings a fresh new voice to our sales team. Cody is a very talented musician and performs with a number of local Toronto bands when he isn’t travelling to industry tradeshows.

Doug’s career as a graphic designer and illustrator has spanned 30 years. For the past 14 years Doug has provided graphic design services through his company, Edge Advertising. He has presented workshops on publication, basics of design, judged design competitions and won awards for his design work.

While writing for Convenience & Carwash Canada, Meline appreciates the opportunity to learn new things through her research on different products and services and make new acquaintances with the people she meets through her articles.

Reach thousands of readers with our print and digital versions that they can access quickly on their mobile devices and desktop.

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Keith House PRODUCTION ART With more than 30 years of both print and production experience Keith House provides industry insight to help create customer advertisements with an eye to industry standards. Keith is also an accomplished jazz pianist bringing a colourful flare to his creative abilities.

CONVENIENCE & CARWASH CANADA 19


Blueprint to Foodservice

A new series on How to Survive and Thrive in the Foodservice Industry Based on industry research results and feedback from our C&G readers, Convenience & Carwash Canada is pleased to feature a new series of articles, under the banner “Blueprint on Foodservice.” The objective is to offer detailed information on how to establish or enhance an effective foodservice program and capitalize on the expected growth and profitability of the category. Over the next few issues, we’ll feature a number of topics covering all meal occasions; co-branding options with established restaurant chains, as seen with Tim Hortons and Esso or A&W and Petro Canada; relevant vendor/supplier products and services; and industry best practices on technology, physical layout and operational logistics, consumer experience that aids in repeat customer visits, and promotions that drive retail purchases – all with the hopes of sustaining a competitive advantage for the long run. Stay tuned to the next issue of Convenience & Carwash Canada, where we dive deep into design – what elements to consider for a successful foodservice offering – e.g. layout, traffic flow, food options, equipment placement. Be sure to visit our website for additional information on foodservice solutions, and come back often, as we’ll be adding new content on a regular basis to help you better position yourself for continued growth and success in foodservice.

20 SEPTEMBER/OCTOBER

IT’S A MATTER OF “SURVIVAL OF THE FITTEST” – A POPULAR TERM FROM CHARLES DARWIN’S THEORY RELATED TO NATURAL SELECTION – ONLY THOSE WHO ADAPT TO CERTAIN CONDITIONS WILL SUCCEED IN THE LONG RUN.

According to Euromonitor International’s 2017 edition of Consumer Foodservice, convenience stores fast food grew 6.1% by value in 2016, posting USD $18.8 billion in foodservice sales.

Although the C&G channel has come a long way in responding to the changing needs of their diverse customer base, there is still more work to be done, particularly as it relates to foodservice solutions – food items prepared off or on-site, packaged or served immediately for individual consumption in a consumer/retail setting. As sales in tobacco and gasoline continue to weaken, foodservice represents the biggest


opportunity for c-stores as a profitable category, with nearly double the margins than non-foodservice items. The competitive landscape includes more players than ever before, such as cafes, bakeries and late-night drug stores. However, given the convenience factor with c-stores, such as location, extended hours, speed of service and one-stop shopping with a variety of options, including grab-and-go food items, the C&G channel is a favourable player in the category. Euromonitor International continues to report that c-stores are becoming the foodservice format that modern consumers need. Modern c-stores increasingly offer more healthful menu offerings and instore dining options. However, it’s one thing to survive, it’s

another to thrive in the foodservice landscape. Having a basic offering of traditional hot and cold beverages, a roller grill or limited grab-and-go food items is no longer enough to maximize profit potential. Foodservice possibilities within the C&G channel are not as limited as they once were. Specialty beverages, more grab-and-go and grill options and greater customization with madeto-order and on-site prep are options only a few c-stores have seized. These c-stores have the winning formula to better respond to today’s time-starved consumer who craves more substantial on-the-go food items – that being fresh, filling and healthy, such as fruit, baked goods, sandwiches, pizza and chicken – just to name a few.

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EVERYTHING YOU WANTED TO KNOW ABOUT THE LEGALIZATION OF CANNABIS IN CANADA BUT WERE AFRAID TO ASK… by Dennis Garces

22 SEPTEMBER/OCTOBER


have been talking about the subject of legalization. I’ve heard some insightful views supporting both sides of the issue regarding cannabis legalization. Beyond those examples, I have also heard some misguided or completely erroneous assertions on the matter. Here are a few of the most common and often repeated misconceptions I have hear: 1. “Why are they busting dispensaries when cannabis is being legalized?”

OK,

so maybe not everything you have been afraid to ask, but discussion and interest around the topic of cannabis legalization has definitely been building. July of 2018 has been projected as the date for cannabis legalization.

AS LONG AS THE ISSUES CONCERNING PUBLIC SAFETY, SECURITY AND TRANSPARENCY ARE ADDRESSED AND RIGOROUS ENFORCEMENT OF REGULATIONS IN PLACE, WE MAY BE PLEASANTLY SURPRISED BY WHAT COMES AFTER LEGALIZATION. According to the results from a number of national polls, most Canadians support legalization. When passed, Bill C-45, known also as the Cannabis Act, will legalize the production, distribution, and retail of recreational cannabis in Canada. This would end the 95-year prohibition on cannabis and make us the first G7 country to do so nationally. As the government moves forward with its agenda to legalize cannabis, many Canadians are wondering how our communities will be affected. Neighbours, co-workers, family members and friends have taken a keen interest and

Currently, cannabis for non-medicinal purposes is illegal in Canada. Until the proposed legislation is passed, the only legal cannabis being sold is to medical marijuana patients by licensed producers and shipped using Canada Post. All legal participants are licensed by Health Canada. There are no other legal means of accessing cannabis in Canada. Under the proposed legislation, the provinces are tasked with developing their own retail and distribution framework which will be supplied with product by the licensed producers authorized by Health Canada. One of the stated objectives of legalization is to put drug dealers and organized crime out of the cannabis business. The many marijuana dispensaries operating throughout the country are illegal and are providing a storefront for the product that organized crime is profiting from. Furthermore, the marijuana for sale at dispensaries do not undergo the same rigorous laboratory testing and controlled production as those produced by licensed producers regulated by Health Canada. 2. “It’s going to be legalized, I guess I can walk around with as much weed as I want.”

Though the proposed legislation in its current form does not limit the amount you can purchase, it does have specific limits to how much you can have in your possession: up to 30 grams of legal dried cannabis or equivalent in non-dried form. The legislation would allow provinces to lower the personal possession limit in their jurisdiction. 3. “Why would they legitimize all those drug dealers?”

The government has proposed a system in which all legal producers would be licensed by Health Canada and all legal cannabis would be distributed through provincially regulated outlets. Legalization does not aim to legitimize the illegal dispensaries, street dealers or illegal internet-based “storefronts.” Even after legalization, only licensed producers are able to lawfully produce cannabis to supply provincially regulated retailers. The provinces will decide the manner in which the product will be distributed in their jurisdiction. Several provinces have explored the option of a crown corporation model similar to the manner in which liquor is distributed. The legalization of cannabis for adult and recreational use will bring about many changes to Canadian communities. Establishing a successful legalization regime will require a clear and robust regulatory framework and a system to rigorously regulate the industry. In Colorado, where cannabis is legal for medical use as well as for recreational users, social acceptance and adoption of cannabis has happened quickly. The Native Roots Dispensary in Colorado Springs is evidence of how quickly cannabis has been welcomed by customers. The Gas and Grass location is

CONVENIENCE & CARWASH CANADA 23


billed as the world’s first gas station and cannabis dispensary. The combination of premium medical marijuana and the convenience of a well, convenience store, is proving very popular. Says Andrew Klukas, president of the Western Convenience Stores Association: “Convenience store owners are highly experienced in keeping age-restricted products out of the hands of minors. We look forward to supporting the development of a controlled market in cannabis products that provide a guarantee of quality standards and, along with that, consumer and public safety.” The Ontario Convenience Store members are trusted to sell the most restrictive societal product, tobacco, while under the scrutiny of 36 Public Health Units who make over 20,000 underage mystery shops every year in this channel, notes Dave Bryans, chief executive officer, Ontario Convenience Stores Association.

“We are proud to pass at 97 per cent using government supplied data,” says Bryans. “In saying all of this there is no better or disciplined channel to handle the sale of prepackaged marijuana then a level of convenience stores. These products would be treated the same as tobacco: out of sight, out of mind and would follow the strict enforcement procedures of the government's own public health mandates. When c-stores are measured against grocery (alcohol sales), LCBO ( government's own employees) and beer stores we continue to demonstrate the highest and best results in handling all age restricted products like tobacco and lottery. We should be congratulated for our abilities to sell these contentious products and be offered the long-term ability to participate in a changing retail world.” Though we may not see the similar normalization in Canadian commu-

nities anytime soon, we are moving in the right direction. Much like our American neighbours, the majority of Canadians support legalization. To be sure, legalization is a complex issue with a myriad of concerned stakeholders. As long as the issues concerning public safety, security and transparency are addressed and rigorous enforcement of regulations in place, we may be pleasantly surprised by what comes after legalization. If all goes as well, those convenience store trips to satisfy cravings may happen with greater frequency among more Canadians, from coast to coast.

Dennis Garces, president of Amercanex, AIE, has 25 years of experience with blue-chip entertainment corporations. As senior executive at A&M, PolyGram, Universal/Vivendi, Sony, BMG US and Somerset Group North America. Garces was involved in marketing and partnerships of such brands as American Idol, Mattel and the Grammy Awards music series. At MTHRTY, a social publishing agency, he worked on developing digital strategies and implementing campaigns on behalf of Sony, Proctor & Gamble, SAB Miller, Toyota, Disney, Walmart and AT&T.

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24 SEPTEMBER/OCTOBER


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by Jim Goetz

BEVERAGE TAXES

A PUBLIC POLICY IDEA THAT IS TURNING INTO A “BUST”

26 SEPTEMBER/OCTOBER


Taxation of beverages does not support better health outcomes, it is a tax on the lowest income households and it hurts small business.

As President of the Canadian Beverage Association I often find myself speaking about the myth that a sugar-sweetened beverages (SSBs) tax can cure obesity while funding a vast array of new programs. The sorry truth, however, as we are seeing jurisdiction after jurisdiction is that a tax of this sort simply does not work – where it has been tried, the evidence is stacking up. Taxation of beverages does not support better health outcomes, it is a tax on the lowest income households and it hurts small business. We need only to look at where SSB taxes have been implemented to provide the evidence for why they won’t support the public health solutions that most government are trying to achieve. Take Mexico as an example. In the first year of their tax, caloric consumption only decreased by six calories per day in a diet

THE WEIGHT OF BEVERAGE TAXES

MEXICO Only 6 calories have been reduced from a 3000 calorie diet adn obesity rates continue to rise.1

DENMARK 1300 jobs were lost, yet no measurable health benefits could be confirmed. 2

PHILADELPHIA Nearly 150 jobs have been lost in 5 months, and a black market for texed beverages is booming.3

Canadian Beverage Association

www.canadianbeverage.ca I www.balancecalories.ca 1 Mexico's 2016 National Health Survey (ENSANUT), finding that the prevalence of obesity and overweight rose overall from 71.2% to 72.5% among adults from 2012-2016, and among adult women it rose from 73% to 75.6% during that same time frame, a statisticalty significant result. 2 “The Proof of the Pudding Denmark's fat tax fiasco.” by Christopher Smvidon, Institute of Economic Affairs. 3 As seen on Fox News story “Shoppers avoid sugar tax by crossing county lines”.

of more than 3,000 calories per day. In addition, 60 per cent of the tax is being paid by the lowest income households. What is also left out of the conversation about Mexico by pro-tax proponents is that the tax actually applies to a wide variety of products including cakes and snacks. So even when a wide tax net is thrown, it only produces an almost un-measurable reduction of calories in diets. Most recently in Philadelphia where a soda tax was put in place (1.5-centsan-ounce), a tax which is 24 times the state excise tax rate on beer, the impact on businesses and consumers has been very direct. Many media outlets are reporting significant job losses and even black-market operations being set up get around the tax. One hundred and fifty unionized delivery drivers have lost their jobs, a local beverage manufacturer has laid off 20 per cent of their workforce and store owners are slashing hours because of lost business. Problems are building for the city as well as revenue from the tax has come in far below what they projected. In July, city officials lowered beverage tax revenue projections by 14 per cent, leaving the pre-kindergarten programs that the tax promised to fund in jeopardy. To sum it up, as the Wall Street Journal recently did, the Philly beverage tax is a “bust.” I could also point to Denmark for yet another example where a very broad “fat tax” did not work. Denmark abandoned its tax 18 months after implementation. They noted that not only did the tax increase the cost of goods dramatically, it made no significant impact on individuals obesity or health. And, almost 1300 Danes were out of work as a result of the tax. For businesses from restaurants to convenience stores, a tax on SSBs has a dramatic effect on their bottom lines. It is a short-sited attempt at solving many very complex health issues like obesity, which we know has numerous contributing factors. Let’s call the tax exactly what it is – as one British Columbia government official called it when researching the idea of a tax – “purely a revenue measure.” Science and research matter when you are talking about the health of Canadians. That is why the Canadian beverage industry has partnered with the Conference Board of Canada to launch the Balance Calories Initiative (BCI).

CONVENIENCE & CARWASH CANADA 27


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HOW MUCH DO CANADIANS REALLY CONSUME? As of 2014, Canadians' average dailer per-capita intake of sugars from all non-alcholic refreshment beverages was 142.5 calories per day – a number that has been in steady decline for over a decade.1 per capita calorie intake from liquid refreshment beverages

CALORIES PER PERSON PER DAY

sugar-sweetened beverage intake in North American countries

180

Canada

175 170 165

United States

160 155

Mexico

150 145 140 2003

2005

2007

2008

2009

2010

2011

2012

2013

2014

0

50

100

150

200

volume per capita (litres) Canadians’ sugar-sweetened beverage intake is moderately low when comparted to our southern neighbours. In a litres-to-litres comparison, Canadians consumed 106 fewer litres than Mexicans, and 67 fewer litres that Americans per-capita in 2015.2

Canadian Beverage Association

www.canadianbeverage.ca I www.balancecalories.ca

This industry lead initiative aims to reduce the per-capita calories that Canadians get from their non-alcoholic beverage by 20 per cent by 2025. Our industry thrives on innovation and the BCI allows us to do just that. Through portion control, reformulation and innovative in new products we are working towards our 2025 reduction goal. Our industry will continue to work hard to provide Canadians with choice in the products we produce. We will also support evidence based policy decision that allow for Canadians to make educated decisions. This must be done though, while balancing the ability for the beverage industry to thrive and innovate and continue to support the over 60,000 hard-working Canadians employed directly and indirectly by our industry.

GlobalData (formerly Canadian). The Conference Board of Canada. 2 Beverages volune: GlobalData, 2015 regular-calorie volumes of still drinks, carbonates, energy drinks, flavoured water, fruit powder, ready-to-make coffees and teas, nectars, sports drinks, and syrups. 1

Jim Goetz is president of the Canadian Beverage Association, the national association representing the companies that manufacture and distribute the majority of non-alcoholic beverages consumed in Canada. He also serves as president of the International Council of Beverages Associations, is a member of the board of Encorp Pacific, a provincial product stewardship corporation, and is chair of the board of the Canadian Beverage Container Recycling Association, an industry-led Extended Producer Responsibility organization.

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30 SEPTEMBER/OCTOBER


by Angela Altass

Medicated Candy Market Shows Healthy Growth For convenience stores in Canada, medicated candy is a must-have-in-stock product.

“Cough drop purchasers are split between planners and those that have acute needs,” says Crowder, “either they or someone they are caring for has symptoms that can be managed using a cough drop”.

“In Canada, cough drops are a core product to stock,” says Warren Crowder, country manager, Canada, Ricola Canada Inc. “Twenty-one per cent of cough drops purchased today are from the convenience and gas channel and independents. This represents $30 million in retail purchases in Canada per year.” Consumers want convenient packaging, a balance of functional benefits that provide relief and great taste all delivered in a brand they trust, says Crowder. Ricola Canada and Lindt & Sprüngli (Canada) are partners in the Canadian market and recently added family bag sizes (45 drops per bag) of their most popular flavours – Honey Lemon Echinacea and Mountain Herb – into the Canadian market. The medicated candy category is growing 4.5 per cent per year in Canada and is split into bags and sticks, says Crowder. “Canadians like both formats as $67 million of sticks and $72 million of bags were purchased in the past 52 weeks,” says Crowder. Ricola is the fastest growing brand, growing 17.5 per cent in the latest 52 weeks, and has a 15.7 share of the market. Halls is the largest brand in Canada at 47.9 per cent of the market, growing 1.7 per cent.” Cough drops are typically displayed in two permanent instore areas, notes Crowder. The larger bag format is often sold in-line, near the pharmacy if the store has one, and sticks are found at a location near the checkout. They are partly planned and partly impulse purchase and should also be supported with temporary displays with impactful messaging in high traffic locations in the store. “Cough drop purchasers are split between planners and those that have acute needs,” says Crowder, “either they or someone they are caring for has symptoms that can be managed using a cough drop. We find that these two groups compose about 70 per cent of cough drop purchases and they specifically go into retail stores looking to purchase cough drops.” Brand awareness is important to consumers when it comes to cough drop purchases, says Crowder. “Equally important is what the image of that brand the consumer has in his or her mind,” says Crowder. “Ricola has high brand awareness in Canada of over 80 per cent unaided and aided awareness. What we are working on is making the brand more top of mind and strengthening for consumers what the brand means to them and whether they understand the key consumer benefits of the brand.” According to Technavio, the global medicated confectionary market is anticipated to grow at a steady rate with increasCONVENIENCE & CARWASH CANADA 31


ing incidences of hay fever and allergies driving the growth prospects. The Americas were noted as accounting for the majority market share during 2016 and are expected to continue to dominate the market. Attracting consumers through various factors, such as promotional shows and point of purchase displays of confectionary packaging in retail stores, influences the decision making of consumers instantaneously, notes Technavio’s overview of the global medicated confectionary market. “Often, medicated lozenges are impulse purchases driven by a sore throat need so visibility is key,” says Voula Papadakos, marketing manager, Fisherman’s Friend, TFB & Associates Ltd. “While many consumers do actively look for our brand, we also notice that in convenience a lot of the purchases are impulse driven. Ideally, medicated lozenges should be located at the front check out or on display nearby.” “Consumers are seeking to alleviate a cough, sore throat, and seasonal allergies through natural medicinal ingredients,” says Papadakos. “Fisherman’s Friend lozenges have high levels of menthol that you can feel instantly. Convenience makes up a big portion of sales as they are often the first stop for consumers suffering from throat and sinus ailments.” Medicated candy is not just purchased to provide relief from ailments, however, notes Papadakos. “A lot of our loyal consumers will purchase, say mint flavor, for an everyday breath freshener and the convenience trade is a quick and easy one-stop for products like this,” says Papadakos. “It’s been a strong growing channel, which is important for us to grow to ensure our loyal fans can always get their favourite flavor on the go. Fisherman’s Friend also has the added bonus of re-sealable packs, making it easier for consumers to carry them on the go.” The lozenge category is up by +6 per cent with Fisherman’s Friend up +13 per cent for a 28-week period ending April 1, 2017, says Papadakos, who notes the importance of brand awareness. “Consumers tend to be loyal to their brand of choice but there are many options when it comes to lozenges and cough candies so understanding the benefits Fisherman’s Friend delivers versus competi-

According to Technavio, the global medicated confectionary market is anticipated to grow at a steady rate with increasing incidences of hay fever and allergies driving the growth prospects.

tors is what helps drive growth,” says Papadakos. “We have a strong and loyal fan base who actively seek out Fisherman’s Friend and are willing to go to more than one store to find the flavor they want. Honey lemon was launched in 2015 and is our number one growing sku and currently third most popular flavor. We get a lot of feedback from consumers trying to find honey lemon near them.” Honey’s antibacterial and antimicrobial properties have been used for medicinal purposes for thousands of years. Honibe products are created using a patented technology designed to maintain all the natural health benefits of honey. Marketed as the world’s first line of 100 per cent pure natural solid honey and honey gummy products, Honibe offers lozenges as well as vitamin gummies. Honibe lozenges, available in pure honey, lemon or cherry flavours, are made from dried honey. Each flavour contains menthol and eucalyptus to sooth sore throats. “We are the only people in the world who can take liquid honey and make it into a solid form,” says Brent Byrnes, director of marketing, Island Abbey Foods, makers of Honibe. “We were on Dragon’s Den about seven years ago and have been growing every quarter since we started. We are in 40 different countries in both the lozenge and the honey gummy form.” Island Abbey Foods launched Omega Gummies and a Vitamin C lozenge into the Honibe line in 2017. The Omega 3 gummies use quality fish oils derived from anchovy, sardine, and mackerel blended with the natural sweetener of honey. “The cough and cold season is around the corner and we understand that our consumers want a product that they can both trust and have true health benefits,” says Byrnes. “Our lozenges have a maximum of four ingredients with honey being the main ingredient, which is between 97-98 per cent of the total ingredients.” Fall and early winter are perfect times for c-store retailers to take note of their medicated candy selection to ensure they can meet the growing demand by consumers seeking relief from sore throats, cold, sinus ailments and seasonal allergies as the colder weather sets in across the country.

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How to Improve Cold-Vault Fortunes

by Uri Rainisch

UPGRADING DOORS, LIGHTING AND SHELVING IN THE COLD CASE WILL ENHANCE THE SHOPPING EXPERIENCE

As convenience store retailers fight the never-ending battle to win the cold-vault competition, it can be beneficial to keep a well-known aphorism in mind: Fortune favors the bold. The cold vault is turf that has been fought over for decades in the c-store industry. Those who want to optimize sales of the important highmargin products that reside in this section of the store must acknowledge this and be willing to take bold steps to ensure that the cold vault is eye-catching, stylish, cutting edge and, most important, inviting to the shopper. The most obvious component to consider when creating the most attractive, efficient and shopper-friendly cold-vault case are the doors. The First Impression

The cold-vault door is the “handshake” with the customer, that first-impression moment that can make or break the relationship. As such, c-store retailers should take great strides to ensure the initial interaction is as pleasant as possible for the shopper. The door handles should be elegant and easy

to grasp. The doors must open and close easily without any bouncing or slamming. Condensation should not be allowed to form on the glass, which creates an uninviting look as well as obscuring the shopper’s view of the products contained within. The door gaskets must fit properly so that the cold air stays inside and the irritating whistling of escaping air is eliminated. The design of traditional cold-vault doors features thick metal borders and center mullions that interrupt the door’s viewable area. However, nextgeneration all-glass cooler doors offer thinner borders that increase sight lines and don’t require mullions, which helps create a panoramic viewing perspective for the shopper. From a cost-efficiency standpoint, the next-generation allglass cooler doors can also feature anticondensation Vacuum Insulated Glass (VIG) technology. The VIG technology is unique in the fact that it removes the need for door or glass heat, making them a “zero energy” solution that will reduce energy consumption and operating costs for retailers. CONVENIENCE & CARWASH CANADA 35


Anthony, a merchandising solutions provider of cooler and freezer doors, and related equipment, has changed the way c-store retailers should think of cold-vault doors with the development of the bold Vista Elite VIG Door model. The design of the Vista Elite door removes the center mullions and thick borders that can hinder the shopper’s line of sight into the cold vault, whic h makes the Vista Elite the industry’s only all-glass, energy-free cold-vault door that offers panoramic product visibility without the need for door or glass heat. Retailers who choose Vista Elite doors will also experience a 1½ year return on investment (ROI) when replacing standard heated doors. Vista Elite doors also satisfy the U.S. Department of Energy’s new commercial-refrigeration energyefficiency standards that went into effect on June 5, 2017. Making the bold decision to upgrade to Vista Elite doors will have many obvious benefits for the retailer, but these benefits will only be maximized if two other critical cold-vault components – the lighting and the shelving – are able to work in harmony with them.

to the visible viewing area as possible, make it hard for the shopper to even know if the product they are looking for is actually in stock. Deeper shelves (as deep as 72") can ensure products are where they need to be when customers are looking for them, while reducing the time and labor that is needed for merchandise restocking during peak store hours.

ANTHONY’S NEW LED OPTIMAX LIGHTING SYSTEM WILL SAVE UP TO 70% IN ENERGY CONSUMPTION COMPARED TO THE CURRENT OPTIMAX PRO 24 SERIES.

Bold Steps to Profitability

C-store retailers who wish to improve their fortunes in the ongoing cold-vault competition must be bold in the decisions they make when outfitting that section of their stores. Sticking with the tried-and-true is no longer good enough in a market where the battle to create and retain market share is a cutthroat one.

Uri Rainisch is the senior product manager for Anthony, a member of the Dover Corporation’s Refrigeration & Food Equipment market segment. He can be reached at urainisch@anthonyintl.com. For more information, please visit www.anthonyintl.com.

Since 1924

See The Light

Harsh fluorescent lights are a thing of the past. Today, the most attractive and inviting coolers and freezers offer soft, gentle LED lighting that provides uniform illumination and enhances product visibility with no hot spots or dead zones. This capability allows the products to “pop,” which helps draw the shopper to them. These new-age lighting systems are also more energy efficient than traditional technologies, meaning that uniform lighting can now be achieved with lower energy and utility costs. In the realm of cold-case lighting, Anthony is preparing to launch the next generation of LED’s in the Optimax family designed to create best-inclass uniformity across the displayed merchandise. Anthony’s new LED Optimax lighting system will save up to 70% in energy consumption compared to the current Optimax Pro 24 Series. All of which will result a pleasing and attractive lighting display that will significantly lower energy and utility costs.

P.D. McLAREN LIMITED

Cleaning Cars Across Canada

Slide Into Satisfaction

While the doors offer entry and the lighting makes the products attractive, the shelving must put the products at the shopper’s fingertips. This means they must operate in a way that makes the products easy to locate and retrieve. Shelving units that do not allow products to slide to the front, or as close 36 SEPTEMBER/OCTOBER

Surrey 604-371-3732 Calgary 403-287-1633

Burnaby Toronto 604-437-0616 905-428-8403 Burnaby 604-437-0616 Calgary 403-287-1633 Montreal 403-287-1633 514-791-6398 Calgary

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by Dave Bowen

LED Technology is More Than Just Lighting

Electronic paper is now available which allows for shelf labels, static menu screens, price screens, and even full colour motion displays, all through wireless remote programming.

Obviously, the last few years LED lighting technology has advanced successfully to optimize lighting for retail petro/ c-store/carwash sites across Canada and North America. LED canopy lighting now maximizes lumen output with lower wattages, further reducing energy and eliminating maintenance. LED site lighting has advanced with the same features but even utilizing louvered reflectors to eliminate glare and throw light further into the site. Even carwash LED fixtures offer bright, white safe environments removing costly maintenance due to such a harsh environment. As well, we can now offer wow factor colour changing in carwashes, which has a proven record of increasing sales not just only for the carwash but increased sales for gas and in store products. LSI has been a leader in most of these technologies in this market for many years but new LED technologies, other than lighting, now have them at the forefront again and is allowing the retail petro/ c-store sites to improve their look and increase sales even further. Now we have LED illuminated signage with brilliant graphics that are easily changed through a flip frame technology. C-store owners can easily lease

this space out to in-store suppliers for x amount of dollars per month, which usually results in a six month or less pay back and then it is a pure profit source. It also offers you and your supplier quick flexibility of displaying new products and exciting promotions. This type of LED sign technology can be displayed in store front windows or strategically located over product areas on the interior to further enhance the buying experience for your customers. New colour changing artistic panels that can be mounted in virtually any ceiling can be suspended over specific special areas to promote new or different products. These panels are wirelessly controlled so you can change colours at any time, have a slow colour change or flash over the feature product. As an example, flyers or initial advertising can indicate the consumer to watch for the area of the store featuring a green fixture. This colour takes the eye of the consumer to the featured products and usually leads to the consumer purchasing the special.

LSI SOAR LED Technology Further to this new LSI SOAR LED technology being utilized in the grocery and auto dealership markets, it can now easily be applied to the retail petro/ c-store to further enhance the buying experience but more importantly supply important data and feedback to the c-store owner as well as identifying buying trends in all age and gender groups. Again, wireless technology allows for strategic CONVENIENCE & CARWASH CANADA 37


placement of beacons throughout the Dave Bowen has been the national sales manager for Webco Lighting for retail space which will prompt the cus- 18 years, responsible for LSI LED Lighting in petroleum, commercial, industrial and tomer via a brand smartphone app. It architectural products across Canada. will tell them about in store features as they pull into the site or are gassing up. This would lead the consumer to purchase the advertised item and in return the site owner gets all the data on the purchase: age, gender, how often they purchase this item or frequent your site. This may sound like big brother is watching but all this info is freely supplied by the individual when applying for the app and is being used worldwide in various markets. Electronic paper is now available which allows for shelf labels, static menu screens, price screens, and even full colour motion displays, all through wireless remote programming. As well Since 1976, LSI Industries has developed comprehensive, high-performance SOAR brings digital signage displays indoor & outdoor lighting to discerning quality standards. LSI has specifically to the forefront in the c-store industry built its reputation as an Image-enhancing expert catering to the C-store, creating organic customer engagePetroleum and Car Wash markets. LSI continues its legacy of excellence with a host of energy-saving LED fixtures, lighting controls, graphics ment with eye-catching effects and solutions and digital signage. LSI has it all. Contact us today! tantalizing ads to capture your customer’s attention. Finally, for larger sites with eating or Mirada LED Area restaurant facilities, truck stops etc, Light (XALM) digital menu boards working in conjunction with digital signage and live TV displays all queued together, can LED Wall Packs offer the customers the ultimate in an eating experience with overall one stop shop capabilities for all involved. It should be noted that digital signage displays are not just for interior but exLED Canopy Fixture (CRUS) terior use as well. Larger sites have utilized this technology for close to road visual advertising that can be seen over a mile away. As well, most of this technology can be centrally controlled from one site to change multiple locaLED Floods tions throughout the province or even Low-Profile Dimmable cross the country. LED Troffer (LPEC) It is indeed an exciting time for the whole retail petro/c-store industry 519-643-6913 across Canada and we are very pleased to be able to offer all these unique, exciting technologies to the Canadian market.

Let LSI Enhance Your Image

38 SEPTEMBER/OCTOBER


CONVENIENCE & CARWASH CANADA 39


National C-Store Day in Canada. Wednesday, August 30th was national C-Store Day across Canada. Convenience Store Day (C-Store Day) is an opportunity for community leaders to have fun and work 15-minute shifts alongside c-store staff, raise money for local charity and thank customers for their business. Since its inception in 2012, C-Store Day has raised over $183,000 for charity including The Children’s Wish Foundation of Canada.  The CCSA thanks all the c-stores and volunteers for making Convenience Store Day a resounding success. In 2017, 100 per cent of all proceeds will go to Children’s Wish. by Brenda Johnstone

Syan Sasidharan, Const, Brad Sparrow, Hargurbir Singh, Glen McClintock, Brenda Johnstone, Doug Hartl, Loren Remillard, Amarinder Kaur, Reagan Peters, Maria Toscano

Doug Hartl, manager of security and loss prevention for Mac’s Convenience Stores, Western Canada hosted the first annual C-Store Day in Winnipeg. “We’re very proud to be partnered with The Children’s Wish Foundation of Canada,” said Hartl. The Winnipeg event welcomed more local dignitaries than any other store involved in the national C-Store Day.

“That’s a very exciting thing,” stated Hartl. “This is the first C-Store Day to be held in Manitoba and with the success of today we look forward to growing the event to many other stores in communities across Manitoba in 2018.” Store operators Amarinder Kaur and Harburbir Singh were thrilled to host the 2017 C-Store Day. Kaur has been

a part of the Mac’s family for four years with the past two years being an operator at the 1750 Plessis Road, Winnipeg location that was opened September 2014. Maria Toscano, director, Manitoba branch office of The Children’s Wish Foundation of Canada stated that as a national organization that doesn’t receive any government funding,

Reagan Peters, Hargurbir Singh, James Teitsma, Maria Toscano, Loren Remillard, Blair Yakimoski, Amarinder Kaur, Doug Hartl, Glen McClintock

40 SEPTEMBER/OCTOBER 40 SEPTEMBER/OCTOBER


James Teitsma, MLA of Radison agreed that a national C-Store Day was a great opportunity for local residents to celebrate their local convenience store while supporting such a great charity as The Children’s Wish Foundation. Today was a great indication of how important the convenience store industry is in Canada.

they rely on the generosity of communities across Canada for their funding. The Children’s Wish Foundation, which grants wishes to children suffering from high risk illnesses, was excited to be partnered with Mac’s Convenience Stores for this very special C-Store Day. Glen MacClintock, marketing manager, Mac’s Convenience Stores, Western Canada said that “it’s an honor to be a part of this national event and we look forward to the

2018 event.” Loren Remillard, president & CEO of the Winnipeg Chamber of Commerce agreed that the convenience store industry is an integral part of any community. The corner store is where local residents go for bread, drinks and snacks. He believes that the convenience store industry is an evolving one and that special days such as C-Store Day are important to celebrate the hardworking people who provide neighbourhoods with daily convenience items.

Local dignitaries in attendance at the Winnipeg C-Store Day were Hon. Andrew Mickelfield, MLA for Rossmere, Mr. Loren Remillard, president & CEO, Winnipeg Chamber of Commerce, Mr. Blair Yakimoski, MLA Transcona, James Teitsma, MLA Radison, Maria Toscano, director, The Children’s Wish Foundation of Canada and Reagen Peters, development/ communications coordinator, The Children’s Wish Foundation of Canada and Const. Brad Sparrow, Winnipeg Police Services.

Since 1924

P.D. McLAREN LIMITED

Surrey 604-371-3732 Calgary 403-287-1633

Burnaby Toronto 905-428-8403 Burnaby 604-437-0616 604-437-0616 Calgary 403-287-1633 Montreal 514-791-6398 Calgary 403-287-1633

www.pdmclaren.com CONVENIENCE 41 CONVENIENCE&&CARWASH CARWASHCANADA CANADA 41


FROM CINCINNATI STARTUP TO GLOBAL LEADER: OPW AT 125 YEARS by Keith Moye

Founded in 1892 as the Ohio Pattern Works & Foundry Company, OPW has been leading the way in the development of fluid-handling solutions worldwide for 125 years. Today, the OPW brand is universally renowned for

Ohio was recently ranked as the best U.S. state for startups by Forbes and Cincinnati was named the country’s 16th-best city for entrepreneurial endeavors. And 125

years ago, Cincinnati, OH, was the place where two entrepreneurs invested less than $400 to launch a company that has grown to become a global leader in its field.

innovation and setting the industry standard for quality, safety, reliability and performance. In fact, OPW is specified by more fluid-handling operations around the world than any other brand. With a passionate focus on the safety of people and the environment, OPW has developed innovative patents and products that optimize the operations of businesses across the globe. Divided into four sectors, these are the globally known brands that make up OPW at 125: Chemical & Industrial • OPW Engineered Systems • Liquip Fluid Transfer Group Transportation • Midland Railcar Products • Civacon Tank Truck Products Vehicle Wash Systems • PDQ Vehicle Wash Systems Retail Fueling • OPW Retail Fueling • Fibrelite Composite Access Covers Collectively, OPW has earned countless patents and has a global footprint that includes sales offices on six continents, manufacturing operations in North America, South America, Asia and Europe, and more than 1,000 distributors worldwide.

42 SEPTEMBER/OCTOBER


The Evolution of a Global Leader

Victor E. Tressie and Joseph E. Hausfeld founded the Ohio Pattern Works & Foundry Company in 1892 with a collective investment of $390. It was the first shop in Cincinnati to make both wood and metal patterns for everything from grave markers to oil valves. In 1904, driven by the rise in popularity of the automobile, Tressie and Hausfeld made the strategic decision to focus the efforts of their company on the petroleum industry. Their first office was built in the same year on Spring Grove Avenue in Cincinnati. The company’s first brass foundry was opened in 1907 to produce metal castings for a variety of products. After incorporating in 1916, a new facility on Colerain Avenue was completed in 1929. This new facility was built as a result of increased growth and production, and housed offices, machinery and assembly work. By now, the company had established a reputation as a leading supplier of nozzles, valves, fittings and couplings for the petroleum industry. The following two decades were a time of continued growth as OPW further established itself as an industry leader. Then, in 1948, G.L. Ohstrom & Associates purchased the company and changed the name to OPW Corporation. A year later, engineer Leonard. H. Duerr invented the automatic shutoff fuel-dispensing nozzle, a landmark design that remains the foundation of fuel-nozzle operation to this day. The 1950s witnessed the expansion of the U.S. Highway System, which was a boon to the automobile industry, and OPW Corporation kept pace by continuously producing nozzles that improved and streamlined the fueling process. OPW’s accomplishments at this time eventually caught

IN 1904, DRIVEN BY THE RISE IN POPULARITY OF THE AUTOMOBILE, TRESSIE AND HAUSFELD MADE THE STRATEGIC DECISION TO FOCUS THE EFFORTS OF THEIR COMPANY ON THE PETROLEUM INDUSTRY.

the eye of Dover Corporation (NYSE: DOV), which was focusing on diversifying its product portfolio in the 1960s. With that in mind, Dover acquired the OPW Corporation in 1961 and shortened its name to OPW. The acquisition provided the company a wide range of new resources and led to a period of accelerated growth, including the founding of OPW Dover (Europa) N.V., which allowed for the distribution of its products in Europe. In 1976, with space increasingly tight in its existing Colerain Avenue headquarters, OPW relocated its manufacturing and office facilities to a new 250,000-square-foot complex on Princeton-Glendale Road in Hamilton, OH, just north of Cincinnati. The facility continues to serve as OPW’s global headquarters today. International expansion continued in 1984 through a joint agreement with Brazil-based Eleven LTDA to manufacture nozzles, spill containers, check valves and overfill-prevention valves for South American fueling markets. Then, in the late 1980s, the acquisitions of POMECO (1988) and Petro Vend (1989) added to OPW’s existing lines of manholes,

swivels, hose retractors and fuel-control solutions. OPW was awarded the first-ever Manufacturer of the Year Award from the Petroleum Equipment Institute in 1990. OPW would win the award a total of six times before the award was discontinued in 2002. The 1990s, 2000s and 2010s have also served as decades of growth for OPW, with numerous acquisitions such as United Kingdombased Fibrelite, Swedenbased KPS and China-based Jump in 2013, along with expansions across the globe, such as a new manufacturing facility in Chennai, India. Over the past 125 years, OPW has established a solid reputation by providing high-quality products that deliver assurance and peace of mind in the areas of safety, reliability, durability and environmental sustainability in critical fluid-handling operations. Behind 125 Years of Leading the Way

OPW credits the longevity that is reflected in this landmark anniversary to the people, partners and products that have allowed the company to build a legacy of innovation.

CONVENIENCE & CARWASH CANADA 43


125 Years of Great Partnerships

Generations of Dedicated Team Members

IT’S ONLY THROUGH THE CONTRIBUTIONS OVER THE DECADES OF THOUSANDS OF EMPLOYEES THAT HAVE ALLOWED THE COMPANY TO CELEBRATE ITS LANDMARK 125TH ANNIVERSARY.

The best companies are successful because of the efforts of great people. It’s only through the contributions over the decades of thousands of employees that have allowed the company to celebrate its landmark 125th anniversary. Many employees have spent their entire careers at OPW. Fred Kelly, of OPW Engineered Systems, has been working at the company since 1964. “When I started in the 1960s, I was at the Colerain Avenue facility in Cincinnati, which had the foundry,” said Kelly. “I’ve worked with some great people over the years and it’s been a great company to work for.” It’s not only the employees that attribute success to OPW team members, but partners as well. Lydia Cowie, president of White Tucker Company, which provides services and equipment for the service-station, petrochemical and aviation- refueling markets, recognizes the impact that OPW team members have made on the success of her distributor business. “OPW has been an integral part of our success and has always been supportive of our efforts by helping identify new marketing opportunities, partnering on promotional activities, and constantly introducing new and improved products to market for our customers,” said Cowie. “I cannot say enough good things about the employees that we’ve worked with over the years. These are truly top-notch people to deal with and we look forward to another 56 years of continued success through partnering with OPW.” John Ellsworth, president of the John M. Ellsworth Co., a distributor of fuel-transfer pumps and service-station equipment, reflects on a symbiotic relationship with OPW that has contributed to decades of mutual success. “Our 40-year relationship with OPW has been instrumental in helping our company grow from two employees in a home office to almost 50 employees in a 50,000-squarefoot facility,” explained Ellsworth. “We consider their team members an extension of the JME family and appreciate the strong relationships we have developed with OPW employees over the years.” Deep, fruitful relationships like these have laid the foundation for partnerships that have stood the test of time.

44 SEPTEMBER/OCTOBER

No one can achieve great things without a helping hand and the same can be said for great companies. OPW recognizes that its success and longevity is a result of the great partnerships it has forged over 125 years of operation with its vast network of best-in-class channel partners, from vendors, material suppliers, distributors and, ultimately, end users. Susan Maples, director of operations at RBM Company, a supplier of parts and service for the petroleum, industrial and lubrication industries, remembers growing up with OPW. Her father, Albert Bruce, co-founded the company in 1945 on principles of selling quality petroleum equipment and providing innovative services for oil bulk plants, service-station operators and industrial users, and OPW products have been a constant in RBM’s 70-plus years of success. “OPW has always been at the heart of our business as we’ve carried OPW products ever since my dad started RBM Company in 1945,” said Maples. “It’s truly been a great partnership as they’ve always evolved to meet the changing needs of our customers. Growing up, we always knew them as Ohio Pattern Works, so that history was instilled in us from early on.” Mike Mortensen, chief operating officer of Alaska Rubber Group, a supplier of equipment to the oil and gas, mining, fishing, timber, agriculture and marine markets, spoke about his relationship with OPW that’s spanned more than three decades. “I’ve been working with OPW ever since I started with the Alaska Rubber Group in 1994 and it’s always been a strong partnership” said Mortensen. “We distribute many of their products and everything really is top notch. To us, OPW represents support.” Support and customer service have been the key components in these successful relationships, but a shared vision on product development is the secret to sustained success.


Innovation over the Years

OPW’s reputation as a true innovator is built on a commitment to creating products that protect people and the environment while enabling customers to optimize their business operations. After beginning life in 1892 as a developer of wood and metal patterns, OPW has truly established itself as the world’s premier supplier of safe, efficient and environmentally sensitive equipment for use in fluid-handling operations.

Bruce Cornelius, corporate parts sales manager at Werts Welding & Tank Service, Inc., a manufacturer of tank trailers, commented on how OPW’s product innovations have been tailored to what the market needed instead of the needs of OPW. “We’ve been working with OPW since 1980 and they have always been more responsive to what the market needs and wants, instead of what an engineer decided to make,” said Cornelius. “Other suppliers think they know what the industry wants, but OPW has people out in the field that are talking and listening before building products. There’s never a doubt that they have our best interests in mind.” Here’s what Eric Hannay, CEO & president of Hannay Reels, a developer of hose and cable reels, had to say about how OPW and “The Reel Leader” have worked together to advance product innovation. “When I started working at Hannay Reels back in 1993, OPW was already

an important swivel-joint supplier on many of our larger hose reels,” he recalled. “We were making our own 1½" swivel joints for fuel-oil customers and began looking to outsource this part to a trusted partner so we could concentrate on what we do best: building reels.” At this time, OPW already had familiarity with the Hannay joint (“HJ”) and its engineers took the design back to the lab and figured out how to improve the swivel with several tweaks. In addition to engineering, OPW made the necessary capital investments to ensure the product could handle all the variations in inlet size, material composition and joint orientation. “They quoted us a fair price and we have never looked back from that project,” added Hannay. “The swivel is now called the WHJ Series in honor of its mixed heritage (W for OPW and H for Hannay) and now accounts for well more than half of our business with OPW.”

Defining What’s Next

Since 1892, OPW has led the way in fluid-handling solutions worldwide. Through state-of-the-art research and development, world-class manufacturing and an unwavering commitment to quality, OPW has revolutionized fluid-handling operations. Over 1,700 OPW employees across the globe will continue this legacy of innovation. OPW is leading the way in helping to protect the well-being of people and the environment – today, tomorrow and into the future. The company has and will continue to define what’s next as it embarks on the next 125 years of its existence.

403.243.1312

Keith Moye is the VP Global Marketing for OPW, based in Cincinnati, OH, USA. He can be reached at keith.moye@opwglobal.com. Further information on OPW can be found at www.OPWGlobal.com. CONVENIENCE & CARWASH CANADA 45


Leading the Way in Fueling Innovation Since 1892. Founded in 1892 as Ohio Pattern Works, at the advent of the automotive revolution, OPW has been setting the industry standard in fueling innovation for the past 125 years. Our success is the result of our innovative thinking, premier product quality and the dedication of our loyal distributors. 125 years strong… and we’re just getting started.

Visit us at NACS-PEI Chicago Booth #4120

Join the celebration by visiting us at www.opwglobal.com/125 and #opw125.

46 SEPTEMBER/OCTOBER

www.opwglobal.com


ENDING CAR WASH ACCIDENTS WITH FULL-TUNNEL COLLISION PREVENTION

It was a big day for Amber Martinez. She was to appear as the maid of honor in her sister-in-law’s wedding. While running a few last minute errands, she decided to roll through the carwash. Partway through the tunnel, Amber felt a bump, then another bump and thought, “Oh, no! Am I getting hit?”

She later learned the SUV driver in front of her had hit the brakes, causing his vehicle to hop off the conveyor and come to a stop. Martinez’s car, being propelled by the car wash, rammed into his multiple times. Both drivers were uninjured, but the man who caused the incident immediately sped away. Next, the car wash attendant informed Martinez the business wasn't technically responsible for damages, leaving her with a damaged bumper that would cost $1,000 to repair — due to an accident that wasn't even her fault. Martinez is not alone. Carwash pileups are happening more often than ever, but, like many patrons, she was unaware such accidents occurred. However, the carwash industry is painfully aware of the problem. And while they do their best to avoid intunnel collisions, they face two major challenges. Why Pileups are On The Rise Many carwashes now offer unlimited plans, meaning their customers can pay a monthly fee to wash their car as often as they like. These plans have become more popular in recent years, and that means

by Pete Ness

more drivers are washing their cars more often than ever before. Increasing demand, in turn, increases the probability of intunnel pileups caused by driver error. Driver error is the most common cause of pileups at conveyor-driven car washes. In this scenario, a driver accidentally hits the brakes or shifts out of neutral, which causes their vehicle to hop the roller. If the car stops moving and the conveyor isn't stopped, vehicles collide into each other and create a pileup similar to the one described at the outset. Self-driving technology also contributes to in-tunnel collisions. Some new cars are programmed to avoid accidents by applying the brakes when a threat is detected. During a car wash, this technology can be problematic because spinning brushes and other equipment may be mistaken as threats. In this scenario, the technology detects the threat, applies the brakes, and the vehicle hops the roller, which causes a pileup. Auto manufacturers are aware of this problem, and some publish instructions for carwash mode, but most drivers are unaware of the risk so they usually don’t know to look for these instructions in the first place.

CONVENIENCE & CARWASH CANADA 47


The Impact of In-Tunnel Pileups Regardless of the cause, car wash pileups create havoc beyond physical damage or repair costs. Not only are victims usually liable for damages, an auto collision can be traumatic. Those factors often make for a lessthan-favorable carwash experience. According to Understanding Customers by Ruby Newell-Legner, 91 per cent of customers never return to a business after a negative experience. And the impact does not stop there. Research from American Express found Canadians tell an average of 16 people about a bad experience with a business. And when shared via social media, the reach can extend much further — to thousands of social media users. Customers regularly post their experiences with businesses on sites like Facebook, Yelp, and Twitter. Negative reviews drive potential customers away and can deteriorate even the strongest of brands. Stories about carwash pileups rarely go viral, but when they do, they can end up in the news — like the Amber Martinez story. In one case, the carwash paid for the victim’s damages — even though they had no legal obligation to do so. It was easier for the business to pay than suffer the bad publicity. But there’s more. According to Michael Benmosche, National Car Wash Insurance Program Manager at McNeil and Company, in-tunnel collisions often cost operators four times as much as direct damage costs. Indirect costs include time spend by staff dealing with collisions, lost production due to a stopped conveyor, loss of business caused by a negative public image, and the cost of training new employees. Carwash pileups increase new employee training costs

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because accidents decrease morale and can contribute to a high turnover rate. For starters, if an accident occurs on an employee’s watch, they may feel responsible. Secondly, interacting with unhappy customers can be taxing. For a pileup victim, being informed the carwash isn’t covering damage costs may cause stress and frustration — and stressed, frustrated customers aren’t always known to be kind. If pileups happen regularly at a carwash, being treated poorly by customers may be enough to make any employee want to find a new job. Preventing Car Wash Pileups Motivated by the significant negative impact of in-tunnel accidents, operators have historically addressed the problem in several ways. Some have an employee monitor the tunnel from inside; others increase the space between cars or decrease conveyor speeds. But these are merely stopgaps. After enough time standing and staring, an employee in such a distracting environment is bound to make a mistake. And slowing production hurts the bottom line. With these dilemmas in mind, carwash owners have been desperate for a better approach to preventing collisions. Rising demand for an effective, permanent solution is bringing forth a new class of carwash technology: fulltunnel collision prevention. This kind of system uses computer vision and machine learning to prevent accidents and improve operational capacity. It’s an automated solution to the pileup problem that ultimately helps operators increase profitability. The system integrates with tunnel controllers and monitors the operation through cameras most carwashes already have installed. If the computer vision detects a stopped car, it stops the conveyor faster than humanly possible and prevents an accident from occurring. In this case, stopping the conveyor helps operators increase production. It may seem counterintuitive, but full-tunnel accident prevention drastically cuts downtime related to incidents. Preventing an accident means spending a few minutes to reposition a vehicle on the conveyor instead of accruing the indirect costs related to pileups. Knowing that reliable machinery is monitoring the tunnel also makes operators more confident, allowing them to increase production and decrease downtime. They are able to operate at faster chain speeds with less space between cars— adjustments that result in more cars per hour, and more peace of mind for both carwash operators and drivers. While the pileup problem has been growing due to increasing customer demand and auto-braking vehicles, full-tunnel collision prevention systems could very well be the answer. Such a solution eliminates the need to slow production or rely on humans to monitor the tunnel. It effectively avoids pileups and allows operators to increase production and decrease downtime. Thanks to the machine learning and computer vision offered by reliable accident-prevention systems, the direct and indirect damages caused by in-tunnel collisions may soon be a thing of the past.

Pete Ness is the founder and CEO of NoPileups, a carwash safety and analytics service specializing in full-tunnel collision prevention. For more information about the service visit www.nopileups.com or email info@nopileups.com.


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Come meet us at our booth! Booth: #912 When: October 2 - 4, 2017 Where: Atlantic City Convention Center CONVENIENCE & CARWASH CANADA 49


Washworld’s

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Washtalk

“OPEN FOR BUSINESS”

ST-PIERRE GAS & CAR WASH LTD.

S

t-Pierre Gas & Car Wash Ltd., formerly Shell Express located in Hearst, Ontario, was suffering from a derelict

Julie and Danny St. Pierre, both working at other jobs but both dreaming of being their own boss, made a decision to begin their new journey. Along with their two children, Lyanne and Rene, and three employees, Gabriella M., Gabrielle P. and Danik, this family business is open for business!

and dysfunctional carwash said Julie St. Pierre. The previous equipment was old and rusted and as you know, old derelict equipment costs more to fix than it does to buy new, said St. Pierre. “In this northern town of just over 6,000 residents and located almost 950 km north of Toronto, options for carwashes are limited with only a self-serve site on the east side of town,” says St. Pierre. “Capitalizing on this by installing new equipment just made sense. We did our research and after deliberation we contacted Mark VII Equipment to discuss our choices to retrofit the current site.” Tim Hickton, business development manager, Ontario and Manitoba for Mark VII stated that “the Mark VII AquaJet XT Touch-Free Rollover with FoamTecs was the best fit for the St. Pierre Gas & Car Wash site.” The FoamTecs equipment applies any foaming chemical to the vehicle in a thick sheet of foam. This feature also includes a programmable, multi-colored LED light show that provides a great customer experience. We are supplying them with chemical from Zep Vehicle Care including RainX Online Protectant and Armor-All Professional Velocity Clear Coat Protectant.” Choosing carwash equipment isn’t always an easy choice, but the tech service offered by Mark VII made the choice easy, says St. Pierre. Including local businesses within this retrofit was important to St. Pierre who noted that both B&C Automation and Northern Maintenance were contracted for both the electrical service and the carwash door repairs. With a Facebook page Shell Express is an active business within the community and utilizes social media to keep their customers up-to-date on specials and gas prices on a daily basis. CONVENIENCE & CARWASH CANADA 51


52 SEPTEMBER/OCTOBER


Shell Express in Hearst Facebook page customer comments Louisette Elvrum Went on Saturday it does a good job cleaning your vehicle Claude J. Lavoie Never seen my car so clean since I have it. Thanks for using the best products on the market! Stef Sylvain Its fast and works really well. I was able to get a snack and wash my car during my 15 minutes break from work! Offering something new and unique, our customers are really happy and that, as owners, is what really counts said St. Pierre.

From the Shell Express in Hearst Facebook page

Since 1924

P.D. McLAREN LIMITED

Candies, Nuts and Trail Mixes Maximize your profits with over 100 everyday, best-selling Cottage Country candies, nuts and trail mixes, packed fresh and delivered fresh, from our truck to your store!

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www.pdmclaren.com CONVENIENCE & CARWASH CANADA 53


54 SEPTEMBER/OCTOBER


South of the Border

CONSIDERATIONS IN PURCHASING CAPITAL EQUIPMENT

by Richard Browne

There’s no shortage of ways to invest to grow your business. Your options range

from purchasing new sites in a similar or new business down to paying your employees more or painting your gas islands. Business owners are faced with these decisions daily. Having a framework to make the best decisions, and avoid bad decisions, is critical to any successful business. The quality of these decisions will result in expanded profitability. The most important measure of profitability, from an investor’s perspective, is return on capital or ROI. ROI is, simply, the amount of money you get back on the money you invest in your business.

Investments should be viewed based on several criteria: • How does the ROI of an investment compare to your other options, i.e. which investment will give you the best return? • How do these returns compare on a risk adjusted basis? For example, purchasing an existing store with known cash flow is likely less risky than building a new store in a new market. If the return on the new store is similar to the existing store, the existing store would have a better risk adjusted ROI. • Is do nothing an option? If so, what would you do with the money and what would that return be? If you would put it in the bank and buy a CD, your ROI would be less than 2 per cent annually. If you would put it into the stock market and think the market will grow at 7 per cent/year, this would be a higher ROI but also higher risk. The average ROI for NACS members is around 15 per cent, which suggests the return from smart investments is much better than doing nothing. In determining your ROI, there are three components to consider: • What is the cost of the equipment or investment? • What will the equipment earn? • What could happen to make the return on investment different than you expect? CONVENIENCE & CARWASH CANADA 55


56 SEPTEMBER/OCTOBER


LET’S TAKE A QUICK LOOK AT EACH OF THESE ELEMENTS: WHAT IS THE TOTAL COST OF EQUIPMENT? When making an investment, the easiest element to look at is the equipment cost. This is clearly spelled out in a quote from a distributor. It is important to also consider what is known as the total cost of ownership, or TCO. Factors to consider in TCO include: • Length of warranty and what is included in the warranty. For example, does the warranty include travel charges to and from your site, parts only or parts and installation, and any type of agreement on response time? Can you negotiate a longer or broader warranty as part of your purchase? • What are the costs of staff training, permitting and other related upgrade costs? • Service technician availability and reputation? How far away from your business are the authorized service technicians located? What is the service techs reputation for fixing items on the first call? • What is the cost of financing the investment? If you choose to pay cash for equipment, it is important to understand the ‘opportunity cost’ of using cash rather than financing or borrowing. For example, could you use your cash to purchase another site that will make you a greater profit than the equipment you are buying? Many people consider it smart to use cash to purchase ‘strategic assets,’ which are investments that grow in value rather than depreciate. With this approach, borrowing or financing is used to pay for depreciating assets, such as gas pumps or LED lights. This approach allows an entrepreneur to maximize their ROI by using a mix of debt and equity to invest in their business. If you could use your cash to earn the NACS average 15% return on

INVESTING IS USUALLY DONE FOR ONE OF TWO REASONS – TO GROW REVENUE OR REDUCE COSTS.

your investment, and instead use your cash to finance an underground storage tank upgrade, the tank upgrade is effectively costing you 15% per year.

less valuable? • Do you fully understand the terms of the purchase agreement? It is important to make sure that any agreement spells out all foreseeable costs related to installation, equipment commissioning, removal of old equipment, freight, taxes and any other costs. Although this may seem like an • What constitutes the equipment easy question to answer, for many being fully installed and ready for equipment investments it’s not so service? easy. Some factors to consider: • If you are financing your equip• What is the cost of doing nothment, ensure that you receive ing? Will I lose gas or in-store clarity on all payments, includbusiness to competitors that ing payments to commence the are investing in their sites and loan, any payments at the end of c-stores? the loan, and any additional pay• What business benefits will I ments or costs. Confirm that the gain? Investing is usually done quoted interest rate is similar to for one of two reasons – to grow the actual interest rate when all revenue or reduce costs. If you payments are considered. are adding new gas pumps or upgrading your brand image, Making an investment in capital you are likely expecting to gain equipment for your convenience gallons and increase inside sales. store or fueling operation is a big In addition to increased gas voldecision. When making a large umes, will your new pumps allow investment, the lowest cost is not you to charge a higher price per always the cheapest cost, short or gallon? Also consider what savlong term. It’s important that you ings you will realize in reduced do your homework in researching maintenance, not just during the the track record of your equipment warranty period but through the manufacturer, the authorized life of the equipment. distributor and installer, and others • If you are thinking of selling that will help you invest in your your site in the coming years, business. what will the modern equipment, regulatory compliance and increased sales mean to your business valuation?

WHAT WILL YOUR EQUIPMENT EARN?

WHAT COULD HAPPEN TO CREATE A DIFFERENT VALUE FOR YOUR INVESTMENT? With most investments, there is always the chance of an unexpected outcome. Some things that should be considered when making an equipment purchase and using financing are: • What could change outside of my control? For example, what impact would a new site across the road have; and how likely is that to happen? Is there technology that could make my investment

Richard Browne, vice president of Marketing, Patriot Capital Richard’s experience includes working with Global and North American retailers to help grow their fueling and retail businesses. Mr. Browne’s roles have involved payment and dispenser innovation and deployment in Europe, Asia and Canada. Prior to joining Patriot Capital, he consulted with midsized high growth businesses as a partner with Chief Outsiders, was vice-president of Marketing with Gilbarco Veeder-Root and was a sales and marketing leader with Black & Decker and Stanley Works. For additional information, visit www.patriotcapitalfinance.com. CONVENIENCE & CARWASH CANADA 57


Forecourt Insight

CANADA’S BIOFUEL MANDATE MAY BE INCREASING... Are Retailers Ready?

by Ed Kammerer

The rumored increase by percentage would be significant when compared to Canada’s current standard: from 5 per cent to 10 per

A June 15 report in The Western Producer noted that “Canadian biofuel producers are gearing up for what they believe will be a doubling of the country’s ethanol and biodiesel mandates in the near future.” The report was spurred by news that Environment and Climate Change Canada (ECCC), the country’s agency tasked with overseeing environment-related policies, standards and lawmaking, had begun consulting with provinces and territories with an eye on creating a clean-fuel standard that would reduce greenhouse gas emissions – a hoped-for 30 megatons of additional reduction by 2030 – through the increased use of low-carbon fuels.

58 SEPTEMBER/OCTOBER

cent (E5 to E10) for ethanol and 2 per cent to 5 per cent (B2 to B5) for biodiesel. That said, the E10 and B5 thresholds are quite low compared to other countries, especially the United States. This is significant, though, because the ECCC will often piggyback over time on the regulations espoused by the U.S. Environmental Protection Agency (EPA). With that in mind, it’s telling that the EPA has begun recommending higher biofuel percentages, with E15 and B10 increasingly common (and E85 standard with flex-fuel vehicles), with talk of bumps in the U.S. mandate to E25 and B20. Any increase in the biofuel mandate will affect Canadian retailers in two ways. First, at some point, they obviously will have to begin stocking and offering new motor-fuel formulations. This means they will have to assess their sites and determine if new underground storage tank (UST) systems and dispensing equipment will be required. The second way is a little more subtle. They will have to determine if the existing UST system and dispensing equipment is compatible with higher biofuel blends. A lot of retailers will think that an increase from E5 to E25 or B2 to B10 can be handled by current equipment, but that’s typically not the case. While most underground equipment on the piping side is compatible with all ethanol and biodiesel blends, the challenge comes on the dispensing side where the overfill valves, emergency shutoff valves, hoses, swivels, breakaways and nozzles may not be compatible with higher biofuel percentages. Let’s take a closer look at the specific equipment-related challenges that can be created by ethanol and biodiesel: • Ethanol: On blends like E15 and E25, the seals and O-rings used in dispensing equipment should not be the same as those that are used


with an E5 blend. Using the same seals and O-rings with higher ethanol blends can result in failures that can lead to fuel leaks and a shorter life expectancy for the equipment. With higher blends like E85, fueling systems that have, for example, aluminum parts can experience leeching of the aluminum that will enter the fuel stream and potentially damage the vehicle. Also, if a retailer was only pumping pure gasoline from a tank and switches to an ethanol blend, the ethanol will act as a cleaning agent and work to strip built-up debris off the tank’s interior wall, which will clog filters, meters and nozzles, and lead to their repair or replacement.

The main concern with biodiesel is that it can be made from so many different source materials – a listing of the top 10 biodiesel crops – so retailers can never really be sure what makes up the “bio” part of biodiesel, and how it will affect their equipment.

• Biodiesel: The main concern with biodiesel is that it can be made from so many different source materials – a listing of the top 10 biodiesel crops includes such disparate commodities as corn, sugarcane and jatropha, a poisonous weed – so retailers can never really be sure what makes up the “bio” part of biodiesel, and how it will affect their equipment. A second concern, especially during cold Canadian winters, is that biodiesel will gel at higher temperatures than conventional diesel fuel. When this gelling occurs, solid crystals are formed in the fuel, which can lead to clogging of the dispensing system’s filters. In addition to being in tune with the specific handling

and use characteristics of higher-blend ethanol and biodiesel, along with their impact on storage tanks and dispensing equipment, retailers would be wise to invest in equipment that is listed by Underwriters Laboratories Canada (ULC). It’s one thing for equipment manufacturers to claim that their products are compatible with higher biofuel blends, but an extra level of protection and peace of mind is afforded to the retailer when that same equipment carries a ULC listing specifically tested at higher concentrations of alcohol and biofuels.

Ed Kammerer is the director of Global Product Management for OPW, based in Cincinnati, OH, USA. He can be reached at ed.kammerer@opwglobal. com. For more information on OPW, go to www.OPWGlobal.com.

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CONVENIENCE & CARWASH CANADA 59


GET THE MOST OUT OF YOUR LEAK DETECTION INVESTMENT The most up-to-date leak detection systems combine very sensitive sensors with intelligent programming and instant communication. They can detect a leak within seconds and communicate that information to network managers anywhere in the world. As a rule these systems are an excellent way to eliminate releases of product into the surrounding ground protecting you from environmental damage and often expensive litigation if your neighbour’s property is impacted. We perform annual inspections on thousands of automatic tank gauge ( ATG ) systems and regardless of how good the equipment is there are still periodic leaks that go undetected. Here are a couple of tips that you may find useful to get the maximum benefit from your system so that you don’t become one of these costly exceptions to the rule. TIP 1: CHECK UP ON YOUR SENSORS PERIODICALLY

The liquid detection sensors attached to your console will be able to monitor any collection point for fuel such as an STP sump or under dispenser containment pan. The sensors are designed to go into alarm whenever liquid is present. The most common problem leading to undetected leaks is sensors that have been moved from their original position or sensors that do not alarm when 60 SEPTEMBER/OCTOBER

CORRECT

The picture shows a properly installed sump monitor. The sensor is secure, perpendicular to the floor and touching the bottom of the sump at the lowest point.

INCORRECT

This picture shows a sump monitor that has been moved from the proper position and is currently hanging from a electrical conduit. This was done to get it up and out of the water in the sump and keep it from alarming.

by Peter Sutherland

they are supposed to. them upside down. A properly In one recent case we were conoperating sensor will cause an ducting an onsite investigation of audible alarm at the control an inventory shortage. The site panel within a few seconds of had a fully functional ATG monibeing flipped upside down. To toring it with no alarms to indicate clear the alarm, simply return the leak. During the site visit we the probe to the proper posidiscovered that all of the sensors tion and clear the alarm at the were positioned incorrectly and control panel. Never enter a did not go into alarm even though containment sump to perform there was a significant line leak this test as it may be a confined with product in the sumps. These space. Sensors at the bottom of sensors the best defence against a a confined space can usually be leak and need to activate as soon reached with a hook to avoid as product is present in any consump entry. It is not uncomtainment sump. mon for a sensor that appears You should periodically check to be in good shape to not functo visually verify that the sensors tion properly when you need it are properly placed. If there is wato detect a leak. ter in your sumps that is causing • There are several YouTube vidan alarm it will be necessary to eos available on-line that will pump the water out, find out how familiarize you with the process it got into the sump and fix the of creating and clearing alarms. problem. The sensors are the most If you have problems locating important part of an ATG when it the appropriate video online comes to protecting you from an then the equipment manufacundetected leak. They are required turer may have a support line to be tested annually by a qualithat can help. fied contractor. However, there is no reason that you cannot imple- TIP 2: ment your own more frequent inspections. The sooner you detect BECOME FAMILIAR WITH a problem the better your protec- THE PROGRAMMING OF tion against a costly release into YOUR ATG: Although the programming of the surrounding environment. an ATG seems very complicated at first glance, they are meant You can easily check the following yourself: to be quite easy to use allowing • As shown above you can check you to do simple tests and that all of your sensors are posichecks. As with most technically tioned properly complicated things that we run • You can test the functionalacross in day to day life, most ity of the sensors by flipping of the answers are available on


Youtube. There are several very good online videos that will assist you to navigate your way through the programming. Once you become familiar the ATG console you can do several things to test your equipment periodically. Some of the features that are important for you to check are listed below; • Periodically check the alarms history. This will tell you if any of your sensors have detected product as well as if you have had any high level or overfill alarms. Overfilling tanks is a potential source for fuel spills that may not be apparent unless you can trace them to an overfill alarm. • Test your overfill alarm. Most overfill protection alarms have a test button that should be tested periodically to make sure that the audible and visual alarm will notify a delivery truck driver of a problem. • Physically check the product level in your tank with a dipstick and compare that with what is

displayed at the console. There may be a difference of a centimetre or two to reflect a slight tilt in the tank but any more than that may cause your inventory reconciliation calculations to become unreliable. This is a good time to dip for water at the bottom of your tank to physically verify that as well. • Make sure that there is a record of the last time that your ATG system was inspected and tested by a qualified contractor. They will do more comprehensive tests annually to verify that the system is working properly. ATG systems have developed to the point where they are extremely effective but there is always a way to fool a computer so it is wise to stay on top of these simple preventative maintenance steps to protect your business from an unexpected and costly problem.

Peter Sutherland is vice president, Testing and Calibration, Englobe Corp. He has worked for and managed Tanknology Canada for over 25 years. In the early 1990’s he started the USTMAN Statistical Inventory Reconciliation business in Canada. Over his career he has been responsible for the introduction of several new technologies such as closed loop meter proving and ultrasonic robotic inspection technology for large bulk storage tanks.

CONVENIENCE & CARWASH CANADA 61


Retail fuel dispensers have come a long way in the last 110 years. The

Wayne’s long distance gasoline system featured a curb-side pump and an underground tank.

by Trinity Stennfeld

TECHNOLOGY FOR THE FU(EL)TURE 62 SEPTEMBER/OCTOBER

original curb-side pump introduced in 1907 was hand-operated and delivered a measured amount of gasoline with each crank of the handle. This design separated the pump from the tank – increasing gasoline capacity and reducing the risk of fire – and was revolutionary for its time. As automobiles grew in popularity, however, the curb-side pumps began to create unintentional traffic jams. This led to the development of designated service and refueling stations later that same year. Today, there are forecourts that boast as many as 120 fueling positions, and gas pumps that talk, upsell, and even tell the weather! Fuel dispensers are now equipped with some of the world’s most advanced technology. With this technology come many unprecedented and exciting opportunities for retailers and c-store owners. One of the biggest technological opportunities new fuel dispensers have to offer retailers, which is projected to arrive in Canada in the near future, is media at the pump. Media-at-the-pump programs enhance brand recognition and loyalty, increase in-store product purchases, and improve the customer’s overall fueling experience. What has historically been recognized as a “distressed purchase,” becomes less so when customers are able to catch up on sports scores from the night before, get the latest scoop on their favorite celebrities, or watch the morning news while filling up their vehicles. And the benefits of media to the retailer go far beyond customer experience alone. Studies have shown that through the use of custom retailer promotional ads (RPAs), c-stores with media-at-the-pump programs have seen a 16 per cent lift in traffic from the forecourt to the c-store compared to the national average. Overall in-store product sales have shown increases of three to five per cent, which equates to around $10,800-$18,000 in annual gross margin. Research from one popular media-at-the-pump platform revealed that 91 per cent of consumers agreed the media-at-the-pump program made pumping gas a better experience, and 73 per cent said it increased their likelihood of returning to that c-store again in the future. Another fantastic element of 21stcentury dispenser technology that is


Wayne Ovation™ fuel dispenser equipped with media-at-the-pump

Trinity Stennfeld is a communications professional and graduate of the University of Alabama. A resident of Austin, Texas, she joined the team at Wayne Fueling Systems in 2016, and currently serves as Marketing Communications Specialist for Dover Fueling Solutions. Wayne Fueling Systems (“Wayne”), part of Dover Fueling Solutions, is one of the world’s largest suppliers of fuel dispensers, payment terminals, forecourt control devices, point-ofsale and other measurement and control solutions to the retail and commercial fueling industry. Wayne products are sold and supported in over 140 countries around the world. For more information, visit www.wayne.com.

THE CONTACTLESS TECHNOLOGY MEANS NO CREDIT OR DEBIT CARD MUST BE PHYSICALLY PRESENT TO PAY AT THE PUMP – ALL THE CUSTOMER NEEDS IS THEIR PHONE! especially advantageous to the retailer is additive dispensing. Some retailers in Canada are already reaping the benefits of premium diesel dispensers, and others are beginning to take notice. Research has found that many diesel-powered vehicle owners are willing to pay a higher price for premium diesel fuel, even if theirs is not a high-end turbo diesel vehicle. These consumers find that the premium diesel offers cleaner burning and higher performance, and even gives better mileage per gallon. A higher quality product for the consumer and higher profit margins for the retailer mean that everybody wins. In the past, the only way for retailers to offer an additional product, such as premium diesel, was to install a separate tank and the necessary extra piping. This not only required space but also was cost prohibitive for many retailers. Now, however, there are premium diesel dispensers able to provide a second diesel fuel grade using additive injection technology. These dispensers blend an additive with the diesel fuel on a proportional basis, allowing retailers to offer their customers this additional Wayne TAP™ contactless/NFC reader

diesel option, without the expense of an additional fuel tank. Also currently available, and being used in dispensers throughout

Canadian forecourts, are contactless/ NFC readers, which allow payment from the user’s mobile wallet, and support retailer loyalty rewards programs in a new and effective way. The contactless technology means no credit or debit card must be physically present to pay at the pump – all the customer needs is their phone! With contactless/NFC readers the swiping and inserting of cards become a thing of the past, so the customer can enjoy the convenience of a faster, simpler transaction. (This is especially good news during those cold winter months!) This method of payment is safe and efficient, allowing customers to be confident that all their card information has remained secure. Contactless/NFC readers also present the ability for special retail promotions, such as mobile wallet coupons, to be used right at the pump, which can be incredibly effective in building brand loyalty and increasing customer retention. Imagine being on the way to fill up the tank and receiving a coupon for a few cents off per gallon, or a free cup of coffee. A customer who is made to feel special and taken care of in that way is a customer who is more likely to return to that fueling point. The potential gains this payment technology gives way to are virtually limitless and can make all the difference in the world when it comes to winning customer business. The world of fuel dispenser technology has come a long way and continues to advance further every day. Savvy c-store owners who have positioned themselves and their forecourts at the forefront of this progress are already realizing the rewards. As the late Apple co-founder, Steve Jobs, once said, “Innovation distinguishes between a leader and a follower.” It’s a truth that holds validity across every field of business, including this one. Simply stated, the c-store industry leaders of tomorrow are the ones who are proactively seizing opportunities to leverage technology in their favor today. CONVENIENCE & CARWASH CANADA 63


It's Here!

CONTACTLESS PAYMENT “No Cash? No Problem!”

Just Tap

N Go!

AIR-serv will be the first to introduce Interac Flash Tap N Go technology for tire inflators and auto vacuums. Fast & easy - Enhance customer satisfaction Also introducing Wireless Remote Monitoring to the AIR-Serv Total Service Program. Check uses and other data online.

AIR-serv services more than 6,000 retail petroleum locations in Canada with over 100,000 service touches annually. AIR-serv is #1 in tire inflators and self-serve auto vacuums.

(800) 263-1429 www.AIR-serv.com 64 SEPTEMBER/OCTOBER

Service Technology Innovation


PETROLEUM SPILL CONTROL: TRAINING STAFF FOR EMERGENCIES by John Espley

It’s happened. A vehicle has damaged their oil pan and is leaking all over your lot. Someone has overflowed their car in a big way or tipped over a gasoline container. A staff member tripped and dropped a container of oil or antifreeze. What happens now? Does your staff know what to do? What are the concerns? These types of problems (and more) are common but often may be overlooked as the hazard they are. Spills such as the above are real dangers to your staff, your customers, your property and the environment. Imagine someone slipping and falling on the remnants of an oil spill either on your lot or in your store. Perhaps someone’s pet not only gets the contaminant on their paws and fur but then licks themselves to clean it leading to real sickness or even death. Can vehicles navigate around the spill or will they end up slipping, sliding or spreading the substance? If you are dealing with a gas spill then the hazards are even more serious. Look to the accident in the

middle east recently where someone lighting a cigarette a distance away, caused a huge explosion near a rolled over and leaking fuel truck. Imagine a customer or passers-by not understanding there are gas fumes in the air (perhaps they are on the sidewalk) and lighting up. Not at all what we want. The first solution to any spill is to mitigate the chances of a spill happening. The second is knowing what to do when it happens. The answer to both is training. All staff should be properly trained, by a professional with experience, so that when they are confronted by such a spill, they can react properly and swiftly to protect people and the environment. Why did I mention trained by a professional? We’ve seen the results of employees being trained via an online course that doesn’t focus on the actual issues they may run into. Poor training doesn’t allow a dialogue of questions and answers, which help students not only retain the information but the instructor can relate actual incidents that he/she

has dealt with that correlate with the student's job. Poor training is like no training. In fact, it can be worse. Staff may think they have the answers but in fact can actually do more harm than good, causing additional safety or environmental issues. Do they know the hazards in your business? What are the flashpoints of Gasoline or Diesel Fuel (https:// www.canada.ca/en/health-canada/ services/environmental-workplacehealth/occupational-health-safety/ workplace-hazardous-materialsinformation-system/whmis-quickfact s-f lammable-combu stibleliquids.html)? A simple antifreeze leak or spill on your property can turn hazardous for your customer's pets for example (http://www.fox25boston.com/news/heartbrokendog-owner-in-utah-warns-aboutpoisoning-symptoms/494924285). For those of you living in snow belts, remember that a leak on the snow should be treated just as seriously, if not more, than if it was on dry ground. Cold temperatures may stop some liquids from flowing but vapors can still be an issue and if CONVENIENCE & CARWASH CANADA 65


Register to attend: www.registration.uniti-expo.com Amongst our numerous media partners

15 – 17 May 2018, Stuttgart, Germany

Your gateway to new markets With 425 exhibitors and 15,000 attendees from over 110 countries*, UNITI expo is the leading European trade fair for the retail petroleum and carwash industries. As a Visitor – You will find everything the market has to offer, from the latest innovations to proven concepts for your successful future. As an Exhibitor – At no other trade fair can you reach out to so many influential decision-makers from Europe and across the world. Exhibitor contact: call +49 7721 98 30 60, e-mail uniti-expo@com-a-tec.de.

Forecourt design by Circle

*UNITI expo 2016

www.uniti-expo.com UNITI expo 2018 cooperation partners

for on-the-go Consumption

Organized by UNITI-Kraftstoff GmbH in cooperation with WDM managment consultancy and com-a-tec GmbH. 66 SEPTEMBER/OCTOBER


not cleaned up thoroughly, what happens when the snow and ice melt? Our BCHAZMAT Management teams have responded to several cases where not only did the staff of the business increase the risk but also the cost to the business owner. The financial consequences of a poorly handled spill can easily outshadow the costs of training, and in fact may be as much as 10 times the cost in dollars alone, not to mention potential injuries, environmental damages, and public relations. Training is the first part of spill control and a proper spill kit and supplies are the second. Do you have the right kit for the risks at your business? What chemicals do you have on the site besides oil and gas? Is your kit, supply cupboard/container, sized appropriately for the risk level? Are there appropriate supplies to mitigate damage to the environment? We’ve often seen a business try to deal with a spill with incorrect equipment. For example, if you try to use the wrong socks or pad and it’s raining or near water (like a carwash), the oil will come right off the pad back into the environment. Spend a few dollars more and buy the correct spill pads and socks. The correct pads or socks will hold the oil no matter if water is present or not. Know what you are buying and what’s in your spill supplies. All too often we see oil/gas/coolant spills just dumped on with kitty litter or some other absorbent material. This is then left to soak up the spill and never touched again. So what happens to the oil in this situation? First off, the area can still be incredibly slick and remains a risk for your staff and customers. The second thing, so often forgotten, is that the kitty litter will eventually be washed down the storm sewer into the natural water environment, releasing the deadly oil into the water supply or ocean. Besides being against fisheries laws, it’s just not appropriate. Note: The pads we use at BCHAZMAT Management, once soaked with oil are shipped by us to a facility that is able to release and recycle the oil from the pads and then recycle the pads themselves for another use (they are made of plastic). How great is that for the environment! Proper training will first show when an employee should deal with a spill or immediately call for emergency help. They’ll know what to do to keep themselves, your customers and people in the area safe. They know what type of equipment to use. For example, if the spill has a chance to make it into a storm drain they can use a catch basin insert or proper storm drain cover. Another tool we use and is great to stock, is a portable spill collection pad or mini-berm. These are basically fold-up drip trays that can easily be deployed in the case of a large vehicle leak and hopefully catch and contain most of the spill before it becomes a real clean-up or safety issue. For anyone with gas pumps or propane at their facility, the danger of a major leak is that much more real. Often we read about drivers hitting a pump, valves failing on tanks and tanker refueling trucks leaking themselves. In a serious situation such as this, training will provide your staff with the confidence of

BCHAZMAT is certified by the ECRC and has a full contingent of emergency response of trucks and trained staff. Many of the response staff are also the trainers for the company including the founder, David Rogers. Based in Sidney, BC, they operate anywhere in BC and the Yukon. Both the company and the founder have received many awards for their business focusing on safety and environmental protection.

knowing how to react, how to stay calm and report it to the authorities and take care of the safety of your staff and customers. When do you call in a Hazmat or remediation company and when do you call 911 for the fire department? Whenever you are dealing with flammables the fire department should always be the first call. Your takeaways from this article should be:

• Have you and your staff trained by a professional in the spill training industry. • Make sure training renewals (training does expire) are kept up to date • Have an appropriate spill kit or container on site that will meet or exceed your risks. • Have a connection with a reliable and certified spill response company and have their 24 hour emergency number visible in several locations. • Consider paying for a risk and supply assessment. A few dollars now can save you a lot of hassles later (work safety inspectors, staff or customer injuries, clean-up costs, property damage, public relations).

John Espley is director of Marketing & Communications with BCHAZMAT Management Ltd. For further information vist www.bchazmat.com.

Since 1924

P.D. McLAREN LIMITED

Cleaning Cars Across Canada

SPECIALIZING IN

CONVEYORIZED CARWASH EQUIPMENT

www.pecocarwash.com Surrey 604-371-3732 Calgary 403-287-1633

Burnaby Toronto 604-437-0616 905-428-8403 Burnaby 604-437-0616 Calgary 403-287-1633 Montreal 514-791-6398 Calgary 403-287-1633

www.pdmclaren.com CONVENIENCE & CARWASH CANADA 67


68 SEPTEMBER/OCTOBER


What’s New

Joel Maganza Joins Innovative Control Systems New VP of Ops role implemented to support the continued growth of the company Wind Gap, PA — Innovative Control Systems is pleased to announce that Joel Maganza has joined the company as vice president of Operations. Joel most recently served as production director for UTC Aerospace where he directed manufacturing and assembly operations while utilizing lean principles to improve performance and efficiency for Boeing Commercial aircraft and Pratt & Whitney integrated and electronic systems. In his prior position, he worked as director of Test Operations for Jacobs Engineering at NASA where he oversaw design, environmental testing, and qualification of tools and equipment for space flight, as well as trained astronauts on proper use of their EMU spacesuits for nominal and emergency procedures outside the Space Shuttle and International Space Station. He has a Bachelor’s Degree in Aerospace Engineering from the United States Military Academy, a Masters in Leadership and Management from the University of Texas (El Paso), and is a certified Project Management Professional (PMP) and trained as a Six Sigma Green Belt. In this new role, Joel will report directly to Kevin Detrick, founder and president of the company. “Joel possesses the experience, skills, and can-do attitude that we value at ICS” said Kevin Detrick. “His addition to the ICS team will help us sustain our aggressive growth trajectory, and support our expansion as we continue to invest in the future of the professional carwash industry.”

OPW Introduces New Matador Composite Cover Lab Study Compares Quality & Durability of Composite Covers Hamilton, OH, August 7, 2017 — OPW, a Dover company (NYSE: DOV) and a global leader in fluid handling solutions, is pleased to introduce its all-new Matador Composite Cover for use at petroleum retail operations, as well as commercial and industrial driveway applications. OPW performed lab tests of its new Matador Composite Cover against three competitors, all of which meet the H-20 standard from the American Association of State Highway and Transportation Officials (AASHTO). Testing the Life Performance for 25,000 cycles at the H-20 standard weight, the Matador Composite Cover far surpassed the durability of two top competitors and weighed 70 per cent less than the third. The “Life Performance Testing” study demonstrates how the Matador maintains the integrity of its level surface (permanent set) through a lightweight and durable material. This flared design promotes maximum water percolation. Standout features include a painted steel frame, a stainless steel recessed lift handle, and a polyethylene skirt with flair that prevents corrosion and rust. Additionally, an exterior tread pattern prevents the risk of back, foot and hand injuries. For more information on the new OPW Matador Composite Cover, please visit the OPW Matador site, contact your local OPW Distributor or call OPW Customer Service at (800) 422-2525.

Since 1924

P.D. McLAREN LIMITED

RDR

Where Technology Meets Integrity Surrey 604-371-3732 Calgary 403-287-1633

Toronto 905-428-8403 Montreal 514-791-6398

www.pdmclaren.com

CONVENIENCE & CARWASH CANADA 69


P.D. McLaren Limited is pleased to announce Jason Quinn, manager, eastern Canada. Relocating to Ontario, Jason brings more than 15 years experience that will serve him well in his new position. John Thompson, Calgary branch manager. John’s more than thirtyfive years of industry experience offers customers expert customer sales and service. Daniel Prudhomme, regional sales manager, eastern Canada, petroleum division. Daniel’s vast knowledge of the business will be great help with sales in the region. Dan Findlay, regional sales manager, western Canada, vehicle wash. Dan’s fifteen years of vehicle wash systems experience will bring new dynamics to P.D. McLarens vehicle wash division including sales and day to day operations. Tony Lombardi, regional sales manager, eastern Canada vehicle wash. Tony brings with him forty plus years of related vehicle car wash sales and service experience. Additionally, Tony brings knowledge of and experience in the construction industry adding increased value to our customers.

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OPW Engineered Systems Launches New Kamvalok® Flat Dry Disconnect Coupler and Adaptor. LEBANON, OH, July 18, 2017 – OPW Engineered Systems, is pleased to announce the release of its new Kamvalok® Flat Dry Disconnect Coupler and Adaptor. Engineered with all the same industryleading features including patent-pending smooth, flat-face poppets. This design effectively eliminates all cavities where liquid can pool and subsequently spill upon disconnection, reducing up to 85% of fluid loss at disconnect. OPW Kamvalok dry disconnect couplers are ideal in liquid-transfer applications involving a variety of chemicals. They feature easy-to-close stainless-steel Autolok™ locking arms and an industry-standard stainless-steel locking handle, which secures both the opened and closed positions to prevent accidental release or uncoupling. The Autolok locking arms also provide added protection with an automatic locking mechanism that is signaled by an audible, positive click, whereas uncoupling requires only an easy tug on the lock release. In addition, Kamvaloks feature vibration-resistant Twin-Kam™ arms. For more on OPW Engineered Systems’ products, please go to www.opw-es.com.

Belanger..................................................................... 14 Bulloch........................................................................ 13 Core-Mark..............................................................11,17 Crazy Horse................................................................ 18 Direct Cash............................................................ OBC Distribution Regitan.................................................. 25 Englobe Corp./Tanknology.......................................61 Erie Brush & Mfg Corp.............................................. 54 EZEE-ATM Network.................................................. 68 Franke......................................................................... 32 Gourmet Chips........................................................ IBC Hole In One................................................................. 5 Istobal Vehicle Wash & Care..................................... 28 LSI/Webco.................................................................. 38 NACDA........................................................................ 9 North Shore................................................................. 6 Oasis Carwash Systems............................................ 56

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OPW Global......................................................... 46, 59 PD McLaren................................................................67 PD McLaren................................................................41 PD McLaren............................................................... 53

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PD McLaren............................................................... 36 PD McLaren............................................................... 69 PDQ Vehicle Wash Systems...................................... 34 PEI............................................................................... 33 Perfetti VanMelle....................................................... 24

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Proto-Vest Inc............................................................. 49 PUDO......................................................................... 70 Reclaim Systems........................................................ 48 Scholtens Inc.............................................................. 53 TFB & Associates....................................................... 30

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Touch 4 Wash (Productive Tech/Wolf Distributing).16 United Distribution Network.................................... 52 Uniti Expo.................................................................. 66 Washtech Vehicle Wash Systems............................. 45 Washworld Inc........................................................... 50 White Castle Food Products.....................................21 WPMA........................................................................ 29 X-Press Wash.............................................................. 39

70 SEPTEMBER/OCTOBER


CONVENIENCE & CARWASH CANADA 71


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Conv&carwash Sept, October 2017  
Conv&carwash Sept, October 2017  

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