Octane English - Sept/Oct 2019 by ensembleiq

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Skogie’s

SUCCESS IS IN THE DETAILS

(L-R) CHRIS, DAVE AND JASON SKOGLUND

SEPTEMBER/OCTOBER 2019 CCentral.ca @CSNC_Octane PM42940023 • $12.00

Family business demonstrates best practices

SEPTEMBER/OCTOBER 2019

PLUS Canada tops the charts for poor fuel economy

Are your wash bay doors ready CCentral.ca for winter?

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SEPTEMBER/OCTOBER 2019 Volume 24 | Number 5

CONTENTS

ION NEW LOCAT ER AT GRE VANCOUVER tsford Tradex, Abbo

OCTOBER 29 & 30

ADVERTISERS

11 AIR-serv Canada Inc. ................................. 9 Airlift Doors Inc. ........................................ 12 BayWatch Enterprises, LLC ......................22 Canadian Carwash Association (CCA) .... 32 Creative Door Services Ltd. ...................... 17 Dover Fueling Solutions ............................ 14 Exact One Ltd. ...................................... 7, 29 Extrutech Plastics ..................................... 13 Forte Products ......................................... 26 Gallop Brush Company .............................10 Greenergy Fuels Canada Inc ..................... 5 InfoNet Technology Corp .........................22 Innovative Control Systems ..................... 23 Mondo Products Co. Ltd. .......................... 2

CCentral.ca

Editor’s Message Fuel security needed

Canada’s Poor Fuel Economy When it comes to vehicles, Canada tops the charts for poor fuel economy

Maximizing Potential Forecourt offers huge opportunity. Are you taking advantage?

A Successful Opening Staying on top of door challenges is key to survival amid winter’s cold

COVER STORY Success is in the details Skogies B.C.-based family car wash business demonstrates best practices

The Convenience U Carwacs Show Guide 2019

Product News

CCA Industry Forum Q2 wash value reports now available

15 Oasis Car Wash Systems, Inc. ............25, 27 PM Electric Corporation .......................... 30 Pumps & Pressure Inc. ............................. 26 WashLinks ................................................. 13 Washworld, Inc. ........................................ 21 Western Oil Services Ltd ........................... 9 Western Refrigeration.............................. 24 Wiz-Tec Computing Technologies Inc. .... 20 Zep Vehicle Care Inc................................ 28

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SEPTEMBER/OCTOBER 2019

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EDITOR’S MESSAGE 20 Eglinton Ave. West, Suite 1800, Toronto, ON M4R 1K8 (416) 256-9908 | (877) 687-7321 | Fax (888) 889-9522 www.CCentral.ca PRESIDENT, ENSEMBLEIQ CANADA Jennifer Litterick | jlitterick@ensembleiq.com GROUP BRAND DIRECTOR - CONVENIENCE Kathryn Swan | kswan@ensembleiq.com VICE PRESIDENT/GENERAL MANAGER - EVENTS Michael Cronin | mcronin@ensembleiq.com EDITORIAL EDITOR, CSNEWS CANADA Michelle Warren | mwarren@ensembleiq.com EDITOR, OCTANE Kelly Gray | kgray@ensembleiq.com TRANSLATION | Danielle Hart ADVERTISING SALES NATIONAL ACCOUNT MANAGER Elijah Hoffman | ehoffman@ensembleiq.com NATIONAL ACCOUNT MANAGER Jacquie Rankin | jrankin@ensembleiq.com SALES & EVENTS COORDINATOR Claudia Castro DESIGN AND PRODUCTION VICE PRESIDENT, PRODUCTION Derek Estey | destey@ensembleiq.com PRODUCTION MANAGER Michael Kimpton | mkimpton@ensembleiq.com ART DIRECTOR | Linda Rapini DIRECTOR OF MARKETING Alexandra Voulu | avoulu@ensembleiq.com AUDIENCE DEVELOPMENT MANAGER Lina Trunina | ltrunina@ensembleiq.com WEB OPERATIONS MANAGER Valerie White | vwhite@ensembleiq.com CORPORATE OFFICERS EXECUTIVE CHAIRMAN | Alan Glass CHIEF EXECUTIVE OFFICER | David Shanker CHIEF FINANCIAL OFFICER | Dan McCarthy CHIEF OPERATING OFFICER | Joel Hughes

CHIEF COMMERCIAL OFFICER | Jennifer Litterick CHIEF INNOVATION OFFICER | Tanner Van Dusen CHIEF HUMAN RESOURCES OFFICER | Ann Jadown EXECUTIVE VICE PRESIDENT, EVENTS & CONFERENCES Ed Several

SUBSCRIPTION SERVICES Subscriptions: $65.00 per year, 2 year $120.00, Outside Canada $100.00 per year, Single copy $12.00, Groups $46.00, Outside Canada Single copy $16.00. Email: ycm@convenienceu.ca Phone: 1-844-694-4422, between 9 a.m. to 5 p.m. EST weekdays Fax: 1-844-815-0700 / Online: www.ccentral.ca/subscribe LICENSING AND REPRINTS Please contact Wright’s Media | ensembleiq@wrightsmedia.com 1-877-652-5295

Fuel security needed Oil and gas security is something Canadians take for granted. After all, we are the world’s fourth-largest producer of petroleum. When our cars need fuel we expect to find it at one of the nation’s more than 11,000 service stations. Could we face scarcity at the pumps? Already British Columbia is finding it a challenge in terms of the cost of a litre of fuel in the Lower Mainland. There, some residents are turning to jerry cans that they take across the border to fill up in Washington state. What about Central Canada, where our largest populations live and our economic engine purrs? Much of the fuel Ontario uses comes from Sarnia, where Imperial Oil, Suncor, and Shell operate refineries. These refineries look to Enbridge and its Line Five pipeline to provide raw material to these installations. Line Five is a major conduit that brings 540,000 barrels of Alberta crude oil and propane east each day and terminates in Sarnia. To get to Sarnia, the line runs south of the border at Gretna, MB through Wisconsin and Michigan. Currently, Michigan is in court asking a judge to have the line decom-

missioned over concerns its underwater passage between Lakes Huron and Michigan constitutes a major environmental hazard. Enbridge has proposed a tunnel to help shield the 66-year-old line from damage. Environmental groups, First Nations in the U.S. and the state government are not in support. This opens the possibility that a judge in Michigan could shut down the supply route and send refiners scrambling. A disruption in Line 5 could mean tremendous price hikes at the pumps and the possibility of shortages in the central region. Times are changing and there will come a point when Canada will use much less fossil fuel. For the present, however, we must contend with current needs and realities. The reality is that Canada requires fuel security to maintain a growing population with transport and home heating products.

kgray@ensembleiq.com

CONVENIENCE STORE NEWS CANADA / OCTANE is published 6 times a year by EnsembleIQ. CONVENIENCE STORE NEWS CANADA / OCTANE is circulated to managers, buyers and professionals working in Canada’s convenience, gas and wash channel. Please direct inquiries to the editorial offices. Contributions of articles, photographs and industry information are welcome, but cannot be acknowledged or returned. ©2019 All rights reserved. No part of this publication may be reproduced in any form, including photocopying and electronic retrieval/retransmission, without the permission of the publisher.

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SEPTEMBER/OCTOBER 2019

When it comes to vehicles, Canada tops the charts for poor fuel economy Usually when Canada is at the top of an international ranking, it’s cause for celebration. Not this time. A recent report by the International Energy Agency shows that Canada’s vehicles have the highest average fuel consumption and carbon dioxide emissions per kilometre driven. They are also the largest and the second heaviest in the world. In short: Canadian vehicles are big, heavy and guzzle a lot of gasoline. For a country that is championing its climate action, how do we square these facts? Many point to Canada’s vast land area—often connected with less-thanideal roads and highways—and our cold climate as reasons for requiring more substantial vehicles. These arguments are not convincing. More than 80% of Canadians live in urban or suburban areas where a more modest vehicle suffices for most activities. In terms of vast distances, that actually calls for better fuel efficiency, not worse. And if cold weather is the excuse for buying an SUV, similarly frigid countries— Sweden, Finland and Iceland—have all managed to survive with lower-emitting vehicles. So what explains Canada’s preference for gas guzzlers?

Fuel economy standards North American vehicle manufacturers produce larger cars than their European and Asian counterparts. This in part reflects consumer preferences, but it is also the result of marketing campaigns and economies of scale in production that push buyers towards SUVs.

SEPTEMBER/OCTOBER 2019

Fuel economy standards in Canada and the United States act to reverse this pressure, pushing manufacturers to produce more fuel-efficient vehicles. In part they have worked: the average fuel consumption of cars and trucks has fallen substantially since 2005. Even so, Canada’s average fuel consumption trend has flatlined recently, with almost no improvement since 2013. The slowdown in fuel economy improvements has a lot to do with the types of vehicles Canadians buy. The Toyota Camry and Honda Civic, once the mainstays of the average Canadian family, have given way to Ford F-150s and Dodge Rams. The shift towards trucks, including SUVs, crossovers and minivans, in the past decade has been phenomenal. And before fingers point at places like Alberta, this is a trend seen across every province.

Is bigger better? Canadians say they are now buying trucks in droves because they are safer. The common wisdom is that bigger, heavier cars are safer in a collision. This is half right. Vehicle weight does affect the likelihood of a fatality from a collision, but only in a relative sense. When similar-sized vehicles collide, it makes little difference to safety outcomes whether it is large-on-large or small-on-small. However, when a large vehicle collides with a small one, the results are (unsurprisingly) far worse for the small vehicle’s passengers. This introduces the notion of vehicle-size externalities: buying a larger car imposes safety costs on drivers of smaller cars. It also raises the prospect of a vehicle arms

By Blake Shaffer PhD, University of Calgary race, with drivers buying ever-larger cars in order to protect themselves, when safety would be just as effective if everyone drove similar, smaller vehicles.

It comes down to cost Far and away the biggest reason for Canada’s fuel inefficient vehicles comes down to cost. Simply put, the cost to purchase and operate a gas guzzler in Canada (or the U.S.) is far less than the rest of the world. This cost difference comes in two forms: upfront charges for vehicle registration and gas prices. In Europe, vehicle registrations are often based on the vehicle’s fuel economy or emissions profile. In France, for example, car buyers face a sliding “bonus-malus” scale (or “feebate”). High-emitting vehicles incur a registration charge up to €10,000 while zero-emission vehicles receive €6,000 in rebates. And in Norway, where new vehicles are subject to a 25% value-added tax and up to €10,000 in registration fees, electric vehicles are exempt from both charges. It is little wonder that Norway has highest share of new sales of electric passenger cars. These upfront charges are often seen as alternatives to carbon taxes to shift consumers towards smaller, less emitting vehicles. And as Norway has shown, they can be effective. However, other research has shown feebates are less cost effective than fuel or carbon taxes in reducing greenhouse gas emissions. Carbon taxes are better at targeting high-mileage drivers, and penalizing a gas guzzler that is driven sparingly can be a very ineffective (and costly) way to reduce emissions. CCentral.ca

Pain at the pump But perhaps the most significant reason Canadians drive less-efficient vehicles is gas prices. There is a clear correlation between the price of gasoline and the average fuel consumption of vehicles. Where gas prices are low, as they are in Canada and the U.S., fuel consumption tends to be high. While most people focus on the role of carbon taxes to reduce emissions by discouraging driving, higher gas prices can also affect the choice of which vehicle to buy. In the aptly named article “Frugal cars or frugal drivers?,” economists Werner Antweiler and Sumeet Gulati from the University of British Columbia looked at driver response to the provincial carbon tax. They found that people started purchasing and driving more fuel-efficient vehicles. According to their calculations, without B.C.’s carbon tax, fuel demand per capita would be 7% higher and the average vehicle’s fuel efficiency would be 4% lower. Carbon taxes may be unpopular with many, but they play an important role in determining what vehicles are on the road now—and in the future. OCTANE

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MAXIMIZING POTENTIAL Forecourt offers huge opportunity. Are you taking advantage? by Kelly Gray

Forecourt sales are all about creating positive first impressions. This is the view of Russell Large, a leading consultant in the convenience store sector. He views the forecourt as a c-store’s front yard and tells operators to take advantage of this prime piece of real estate beyond selling gas. “Recently, many food establishments have switched to an almost exclusively ‘patio-based’ service model, and I think retailers are onto something,” he says, pointing to sites that offer smaller footprints with fewer staff and no formal layout. “With a little imagination, this is the forecourt of most gas/convenience sites. The trick for success is leveraging the time the customer is filling up, against something ‘fun’ for them to do while pumping gas.” Here Large mentions Wayne’s interactive touchscreen pump topper. “The pump topper can be used to entertain while at the pumps with content, such as short funny YouTube clips, or used to direct customers into the store itself for specials or guide them to forecourt products, such as windshield cleaners.” Interactive pump-side systems will soon use facial recognition software to address customers directly when they approach the fuel dispenser. “These systems would greet the customer and display specials that the system’s data has pre-determined a preference based on past purchases. Customers could be directed to an island pop display, propane cage or other area of the forecourt. Already we see prompts for car wash as pretty standard on most dispenser systems. Certainly, this capability is going to be

SEPTEMBER/OCTOBER 2019

enhanced as technology moves forward.” Large suggests that much like the bathroom in a restaurant, the forecourt or ‘front lawn’ of a gas/convenience store location speaks volumes about the service, or lack there-of, that awaits them inside. “A clean, well organized, fully stocked and innovative forecourt will eventually sort all the players out, as curb-appeal isn’t just for homes. You’ll need to have solutions in place for Millennials that want a frictionless interaction, and those that want good old-fashioned service. They are your future customers. Embrace the tech.” Getting the service and product message out to customers is key to success at forecourt. Tim Walker runs RevinMedia Inc., a marketing and brand strategy agency based in Mississauga, Ont. He suggests gas station customers need to be directed with clean simple design communications. “People are often overwhelmed at retail sites with not just marketing messages, but with cellphone communications and other inputs. Good communication cuts through the clutter and there are lots of places to do this at the forecourt,” he says, pointing to bollard sleeves and dispenser nozzles, as well as highly visible flags that can pull in customers off the street. “We have been seeing success with LED reader boards that display specials and other commercial messages in custom sizing tailored to each unique application,” he says. At Vancouver Island’s Peninsula Co-op they have been working to streamline the forecourt in an effort to present sites with cleaner visuals and enhance curbside appeal. “Investment in a clean, uncluttered

“INVESTMENT IN A CLEAN, UNCLUTTERED EXTERIOR, GOOD LIGHTING, AND APPEALING LANDSCAPING WILL DRAW PEOPLE IN” exterior, good lighting, and appealing landscaping will draw people in,” says Tom Humphreys, petroleum operations manager, Peninsula Co-op. “More is not better. “The large fixed exterior merchandise cases full of oil and washer fluid that often sit between pumps or against the building are no longer what we want. We like a limited selection of oil and washer fluid on two-wheel rolling carts. These are easily moved into the store at close, easily refilled from back stock and much less inventory investment sitting outside.” At Breakaway gas stations, they too are paying very close attention to forecourt opportunities to add customer value and fuel retailer revenue. According to Veronique Murphy, VP retail & marketing at Greenergy Fuels Canada Inc., the company behind Breakaway, everything starts with research to drive effective marketing activities. “Once operators really know their customers—whether they are traveling to cottage country or motoring in a city-setting—they can make better seasonal forecourt product choices to address changing customer needs and, most importantly, effectively encourage them to go inside their Breakaway c-store and make more impulse purchases. “At Breakaway, we also use forecourt advertising as a powerful way to grow retailer revenue. Building on Breakaway’s unique hockey theme that pulls consumers into its bright and modern forecourts, we position advertising on pump toppers, nozzle talkers, feather flags, posters and dispensers. This multi-channel forecourt messaging is highly integrated with our in-store promotions and technology, such as our eye-catching hockey-rink styled mini jumbotrons, which get customer attention and increase sales. “On full-service forecourts, Breakaway is also using technology, such as portable debit and credit card payment terminals, to enable operators to offer customers convenient and seamless car-window service,” she says, concluding that communicating the right messaging at forecourt generates tremendous opportunities. OCTANE CCentral.ca

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A SUCCESSFUL OPENING Staying on top of door challenges is key to survival amid winter’s cold

By Kelly Gray

As the cold weather starts to roll in, car wash operators need to pay special attention to entryway systems. “Freezing temperatures can create all kinds of problems with car wash sites. Once the weather changes operators that have not paid attention to their site’s needs for maintenance will likely pay a heavy price in downtime and customer satisfaction,” says Tony Heembrock, operator of Dreams Eco Xpress Car Wash in Okotoks, Alta. Randy Andrusiak, operations manager for Red River Co-op’s Gas Bar, agrees. Like Dreams, Red River Co-op sites are located in regions where temperatures start to fall around the end of October. His sites regularly run in weather as cold as minus-35ºC—you have to combat ice build-up and seasonal maintenance is the key. “A frozen door won’t help you make money,” he says.

Innovating designs Manufacturers are coming to the aid of operators with design adaptations that help keep doors running smoothly, even in the worst of weather. Edmonton-based Creative Door is a good case in point. Daryl Laprade, director of sales and business

CCentral.ca

development, says they have developed a direct drive motor that helps remove some of the challenges of maintenance. “Direct drive operations remove the need for springs and have fewer moving parts. Over the next five years, operators can expect to see a shift away from the standard models in use in most car washes today,” he adds, noting that while high-performance direct-drive doors are more expensive up-front they offer far lower maintenance costs and have fewer challenges overall. SDI’s “Safedrive” system is a direct drive operator and door system with as few as 12 moving parts that offers a high speed door with a high cycle springless operator. “Calling in service technicians can be expensive and when sites are down with doors that don’t work operators can lose at least $500 an hour in lost revenue.” BayWatch Enterprises has a tool that helps operators worried about staff inadvertently leaving doors open in bad weather. “If a door gets left open in the cold weather and a location experiences a freezeout this can cost $10,000 to $12,000 in repairs,” says Ontario-based operations manager Michael Howe. He says BayWatch offers IntelliWatch Alert System, the only car wash door system with remote monitoring. Benefits include, increased uptime and bay control thanks to a system that delivers

SEPTEMBER/OCTOBER 2019

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instant e-mail/text alerts about open doors or heater failures. IntelliWatch also offers the ability to remotely diagnose problems or make changes to door and heater configurations. “When the weather is warm, operators can set doors to stay open longer and in the cold remote access makes it easy to keep doors closed when not in use.” Findoor, based in Okotoks, Alta, is another equipment innovator that is creating positive change at wash sites. Made in Canada, Findoor’s products feature unique vertical folding doors that are engineered to be weather tight. The core of the door is made using a thermally insulating material that does not absorb water. When the door is opened or closed, steel hinges lift the door off the floor to keep the weather-stripping on the door bottom in good condition and reduce challenges with ice build-up. When closed, the male and female design of the weather-stripping between panels, and the door edging weather-stripping, squeeze tightly against the critical surfaces to keep nasty weather outside and improve energy efficiency inside for lower operating costs. OCTANE

ESSENTIAL MAINTENANCE OCTANE asked some of Canada’s leading manufacturers to share their top tips for keeping entryways working, even in the coldest weather.

According to Ross Bennett of Canadoor Door Systems, seasonal servicing will keep those customer lines moving through wash sites. ✓ Keep ice build-up away from entrance and exit of car wash doors. If ice builds up, the proper opening and closing of doors can be compromised leading to other potential problems (i.e. loss of heat, doors not sealing properly leading to security concerns, etc.) ✓ Clean photo eyes and sensors every day. Often all that is necessary is a quick wipe down of the car wash door photo eyes or sensors to ensure correct readings/operation takes place.

Daryl Laprade from Creative Door estimates that preventive maintenance can save an operator 25% in annual repair costs.

Bob Kowalski of Airlift Doors suggests an ounce of prevention is often all that is needed to keep doors running smoothly—even in the toughest weather.

✓ Doors with springs require quarterly servicing to make sure they are up to the challenges of cold weather days.

✓ If you use air to operate the car wash door, make sure the compressor is free from water. This can present additional challenges during cold weather months.

✓ Technicians need to look at balancing and they should examine the system for cable wear and make sure the hinges and rollers are ready for the challenge of cold weather service.

Wash! and Store

• • • • • • • • •

✓ Lubricate, lubricate, lubricate. In summer, operators often keep doors fully open. To keep doors properly lubricated they need to cycle. Even in warm weather doors should be opened and closed regularly to keep contact points well oiled. He suggests non-detergent motor oils for the cylinder and having an auto lube set up that delivers a shot of oil each time the door is operated. And, remember that chains and bearings also need regular applications of lubricants to keep them performing. A little lube saves money in the long run.

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B.C.-based family car wash business demonstrates best practices By Kelly Gray L-R: Chris, Dave and Jason Skoglund

Success is in the details PHOTOS: LIZ TREMBLAY

The Skoglund family has seen a lot of change in the car wash industry during nearly 50 years in business. Today, they run state-of-the-art automatic and self-wash centres in Kelowna and Vernon, B.C., which raise the bar for car cleaning in the Okanagan. “My dad, Dave Skoglund, moved us here from Terrace, B.C. in 1970 and opened Big Eagle Car Wash a year later,” says Skogie’s co-director Chris Skoglund, who shares the title with brother Jason. His father was newly married at age 25 when he talked to his father about the income potential of a car wash site. “My grandfather was a logger with a mind

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for business and my dad was all about solving mechanical challenges. Together they considered the opportunities of the car wash business and saw there was a good fit. Kelowna was growing and at the time there were no operators in the city so my dad jumped in,” says Chris, adding that Dave Skoglund took the wash business to new heights with the opening of Kelowna’s Orchard Park Car Wash in the 1980s. The Orchard Park location was on the site of a Petro-Canada station and offered a full-service wash first and then a self-wash facility as demand grew. The location was torn down in 2009 to create the current Skogie’s Orchard Park AutoSpa at 1830 Underhill St. The Skoglunds added operations in Kelowna’s downtown and Willow Park, each with with a touchless system attached to an adjacent Esso

SEPTEMBER/OCTOBER 2019

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“A lot of our detail staff have been with us for the long haul. This has enabled us to develop a crew with unique skill sets that deliver quality performance and customer engagement”

station. The downtown location has since been sold, however the group expanded into Vernon with a new 145-ft. tunnel wash and self-serve vacuum installation. Coming soon is a location on Clement Drive in Kelowna, for which they are partnering with Canco, a B.C.-based independent fuels company that will operate a c-store and gas bar on the new site. Canco is a great fit with Skogie’s, especially when considering the exceptional service offered from both companies.

Detailing profits According to Chris, the idea from the outset was to create destinations where car wash was king. To do this they concentrated on automatic tunnels alongside a premium detail service that started small and grew. He says they saw quickly that the detail shop required greater throughput, consistency and quality control. “We had one guy doing the detailing in the parking lot, so he had to run around to get supplies, as well as mix and fill spray bottles,” he says, adding that they spelled out chemical mixing directions for staff, but over time these weren’t followed so they would get uneven mixtures. To get to a better place, Chris and Jason decided to invest in a proper system. The brothers looked to the Japanese auto industry’s Lean production techniques. Here they sought to add professional detailing systems in a compact footprint where they could manage equipment, personnel and materials to optimize productivity, workflow and quality, while also minimizing waste. Their approach allowed them to cut 25% from the time and labour previously used to detail each vehicle. This created considerable savings per vehicle in chemical and material costs “With our new detailing system, we can charge about 30% to 40% more per car while getting more referrals and repeat business,” says Chris, adding revenue from their two detailing bays climbed 25% to around $250,000 a year.

SEPTEMBER/OCTOBER 2019

He describes the system as one where all the tools and supplies needed by detailers are within easy reach so they never have to leave the vehicle or service bay. Each workstation is placed on either side of the vehicle, allowing multiple technicians to work independently at once. This greatly increased productivity with more vehicles detailed each day. The workstations include wet/dry vacuums, and dispense up to a dozen cleaners, shampoos, and treatments through colour-coded chemical lines. The system also dispenses waxes, polishes and compounds to expedite finishing. “We often have two technicians detail a car together so customers don’t have to wait. We detail faster with more consistency and professionalism. Now, detailing is one of the most profitable areas of our business,” says Chris.

Getting the most from staff About 25% of the full-serve budget and up to 10% of the flexserve budget are dedicated to labour. To get the most from their staff, Jason and Chris prioritize training and staff buy-in. “A lot of our detail staff have been with us for the long haul. This has enabled us to develop a crew with unique skill sets that CCentral.ca

BRITISH COLUMBIA LOCATIONS: • ORCHARD PARK, KELOWNA • WILLOW PARK, KELOWNA • VERNON • CLEMENT DRIVE, KELOWNA (COMING SOON)

deliver quality performance and customer engagement,” says Chris. At Skogie’s they start by paying staff a higher wage than competitors. “We also pay a commission to any staffer that sells products and services. Tips are also shared at the Kelowna AutoSpa and this helps level things out and makes a positive addition to wages. The result is a highly competent team that is supportive of the business. It’s a win/ win for everybody,” says Chris, noting that they have a lot of staffers who have been with Skogie’s for 10 to 15 years.

Greater efficiencies At the front end of the tunnel wash, Skogie’s crew stands at the ready with a high-pressure hose to get to hard to reach locations on the vehicle and remove caked-on grime. “Not every-one is comfortable with car wash systems,” says Chris. “Our staff is there right at the beginning to discuss the process and observe any challenges.” Skogie’s uses wells to provide water for the locations, rather than tap into city water services. Water is reclaimed using PurClean systems that allow 65% to 70% of wash effluent to be put back into use. “We have three settling tanks at the AutoSpa that use filter baskets, as well as cyclonic filtration, to get us to a point where our reclaim has just five microns of sediment. We use reverse osmosis water in the rinse to remove minerals,” explains Chris. The tunnel systems are also all-electric, as opposed to the hydraulic systems that are common in the industry. “Our motors all use a soft start-up to save energy and increase equipment life.”

The Orchard Park AutoSpa also uses a full conveyor system rather than a chain and pulley drive. This offers a more efficient throughput, is easier on vehicles and allows modern automotive artificial intelligence (AI) systems like autonomous braking to interface with the wash system. “We have also made modifications to the tunnel to allow wider pickups access. We even have automated systems that disable dryers to reduce box slosh in half tons,” says Chris. Skogie’s doesn’t use a dedicated app, but has auto-tellers on-site, as well as RFID tags for fleets and regular customers. In the tunnel, Chris believes longer is better. Currently, Skogie’s offers two 145ft. tunnels, with a 160-ft. tunnel coming to the new Clement Drive location. “Longer tunnels allow for more drip space before drying and there is more dwell time on pre-soak to allow the chemical agents to do their job,” he says, concluding that success in car wash is all about the little extras that deliver quality. OCTANE

TIME-TESTED BRANDS. SWIFT, SKILLFUL SERVICE. SDI’s new high-performance Safedrive direct drive motor has less than 12 moving parts and offers a high-cycle springless operator—helping reduce your overhead door’s annual maintenance costs and minimizing downtime required for repairs. Keep your business moving forward with help from the experts at Creative Door Services.

SHOW OFF!

Convenience U CARWACS Show debuts in Greater Vancouver On October 29 to 30, you’ll find new business and suppliers at the Greater Vancouver installment of Canada’s leading convenience, fuel and car wash trade event—The Convenience U CARWACS Show. Plan to make product discoveries, meet new business associates and learn from industry leaders.

CAR WASH EDUCATION ◆ DAY 1: The CCA will host the CARWACS Car Wash Tour, which features interactive site tours, peer-to-peer learning, networking and ample opportunities to nurture camaraderie. After breakfast, the bus leaves Tradex in Abbotsford at 8:45 a.m. and will return to the show at noon for a CCA-hosted luncheon. Then, operators will have a chance to explore the trade show floor. ◆ DAY 2: The CCA will conduct two morning education sessions, each offering car wash operators valuable tools to improve their businesses. 9 to 10:15 a.m. “Leadership Worth Following: Discovering meaningful value in the car wash industry” helps to connect the dots on how to turn your business into a high-retention, engaged and contributing force to be reckoned with that will surely benefit your bottom line. 10:30 a.m. to 12 p.m. “Advancing your car wash business” is an industry roundtable workshop exploring several key topics, including effective business planning; business development loans; marketing strategies; website development; social media; insurance and much more. Seasoned industry experts will be on hand to answer your questions.

TRADE SHOW FLOOR Exhibiting companies on the the show floor can be seen both days starting at 12 noon. 91% of attendees at The Convenience U CARWACS Shows report they will buy products they see at the show. Bring your questions and find answers among the West’s largest collection of fuel, car wash and c-store trade personalities in one place.

NETWORK Join colleagues, make new friends and associates. This is the show where opportunities happen.

ION NEW LOCAT GREATER VANCOUVER tsford Tradex, Abbo

OCTOBER 29 & 30

FOR MORE INFORMATION: ConvenienceU.ca | CARWACS.com

SEPTEMBER/OCTOBER 2019

CCentral.ca

PHOTOS: GOLD MEDIA

GREATER VANCOUVER OCTOBER 29 & 30, 2019

375

508

275

506

373 371 369 367

365 363 361 359

370 368

366

362

360 358

271 269

267 265 263 261 259

355

347

253

345 343 341 339 337 335

331 329 327

346

342 340 338 336 334

332 330 328

409

247

243 241 239 237 235

233 231 229

407

504

405

502

278 276

272 270 268

500

179 177

173 171 169

174

262 260 258 163

159

153

170 168 166 164 162 160 158 156

FLOOR PLAN

SHOW LISTINGS

(As of publication date)

Access Cash General Partnership 242 4-191 Attwell Drive Toronto, ON M9W 5Z2 Canada Phone: 416-247-0200 Fax: 1-800-449-2331 Toll Free: 1-888-289-3939 www.access-cash.com Access cash is the #1 ATM provider in Canada with a Nationwide Network of over 9000 ATMs, covering all provinces and territories, access cash has the best team of dedicated ATM professionals with a superior reputation for customer service and support. ATMs, ITâ&#x20AC;&#x2122;S ALL WE DO! CCentral.ca

165

242 240 238

147

141

146

234

232 230 228

139 137 135

131

144 142 140 138 136 134

129

401

130 128 126

MAIN ENTRANCE

Ace Camp Equipment 330 660 Evans Avenue Vancouver, BC V6A2K9 Canada Phone: 604-688-9989 Fax: 604-357-1102 Toll Free: 1-855-688-9989 www.acecamp.ca Ace Camp has provided a range of outdoor equipment and emergency preparedness products to customers in dozens of countries around the world. Airlift Doors, Inc. 174 400 State Highway 55 Maple Lake, MN 55358 United States of America Phone: 612-529-1000 Fax: 612-588-7660 Toll Free: 1-888-368-4403 www.airliftdoors.com Manufacturing overhead doors and openers for over 35 years, Airlift Doors Inc has a dealer network all across Canada and the United States. Best known for Alaska Polycarbonate Doors, XRS Vinyl Roll Up Doors and the Magnaglide & Powerglide Opener.

Arctic Chiller Ltd. 100 Cree Road Sherwood Park, AB T8A 3X8 Canada Toll Free: 1-866-417-2666 Fax: 780-449-0404 @articchiller www.articchiller.com

270

AIR-serv Canada Inc. 259 100 Courtland Avenue Concord, ON L4K 3T6 Canada Toll Free: 1-800-263-1429 www.air-serv.com AIR-serv is the world leader in providing tire inflator equipment and services to the retail petroleum industry. We supply, install & maintain at no cost to you. Bang Energy 1600 North Park Drive Weston, FL 33326 United States of America Phone: 954-641-0570 Fax: 954-389-1538 www.vpxsports.com Bang Energy Drinks. VPX Products. Redline. SEPTEMBER/OCTOBER 2019

275

| 21

SHOW LISTINGS

BestWorth Rommel 238 19819 74th Avenue NE Arlington, WA 98223 United States of America Phone: 360-435-2927 Fax: 360-435-3617 www.bestworth.com BestWorth specializes in the engineering, fabrication, and installation of canopies and architectural design. Includes structural steel and engineering capabilities all to ASTM International’s standards.

CAF Outdoor Cleaning 130 PO Box 1121 Maple Valley, WA 98038 United States of America Phone: 425-737-0025 Fax: 1-888-894-4111 Toll Free: 1-888-737-0025 www.mycaf.com Clean stores sell more! CAF is the industry leader in supplying cleaning products to help retailers differentiate with clean to grow sales and improve profitability.

Bimbo Canada 6350 203 Street Langley, BC V2Y 1L9 Canada Phone: 604-532-8200 Bimbo Canada Takis, Snack Cakes, Vachon, Hostess.

263

Brand Strategy Execution Inc. 35 Romina Drive Concord, ON L4K1K3 Canada Phone: 905-881-4762 www.marsham.ca

144

Canadian Carwash Association (CCA) 338 200-411 Richmond Street East Toronto, ON M5A 3S5 Canada Phone: 416- 239-0339 www.canadiancarwash.ca The Canadian Carwash Association (CCA) is a National Not-for-Profit Association dedicated to sharing knowledge and best practices, as well as to promoting the benefits of professional carwashing.

B.C.P.C.A PO Box 31571 Meadowvale SC Pitt Meadows, BC V3Y 2H1 Canada www.bcpetroleum.com

271

Cantest Solutions Inc. 162 2-23 East Lake Crescent NE Airdrie, AB T4A 2H5 Canada Phone: 403-912-9129 Fax: 403-912-9337 Toll Free: 1-800-318-1441 @CantestGroup www.cantest.net Cantest Group of Companies provides quality services for the petroleum market with expertise in Meter Calibration, Leak Detection, Smart Security, SaaS and more.

Cheesewich Factory 237 6800 Santa Fe Drive Hodgkins, IL 60525 United States of America Phone: 708-458-3100 Fax: 708-458-3103 www.cheesewich.net Cheesewich is the perfect Grab-n-Go snack. Zero carbs, gluten free and double the protein. Designed with today’s health conscious consumer in mind. Cleaning Systems, Inc./Lustra 358 1997 American Boulevard De Pere, WI 54115 United States of America Phone: 920-819-1571 Fax: 920-337-9410 www.lustrabear.com CSI/Lustra manufacturer of professional car wash chemicals with distributors through Canada, United States and International. Lustra products meet and exceed customers’ expectations. Clean, shine, dry! Coldstream Commercial Sales Inc. (CCSI) 335 B026 Alexander Road Delta, BC V4G1G7 Canada Phone: 604-940-8668 Fax: 604-940-8669 Toll Free: 1-888-872-0777 www.ccsi-laundry.com CCSI is Western Canada’s leading commercial coin-operated laundry equipment provider, providing Equipment sales, Parts, Service, and Installation for Laundromats, and all Laundry Applications.

GREATER VANCOUVER OCTOBER 29 & 30, 2019

Computrol Fuel Systems Inc. 169 8537 Commerce Court Burnaby, BC V5A 4N4 Canada Phone: 604-421-1001 Fax: 604-421-1007 Toll Free: 1-877-421-1001 www.computrolfuel.com We simplify complexity in fuel and liquids management. Real time, web-based, securely in the cloud. Nationwide network of experienced dealers and authorized service representatives. Conagra Brands 339 5055 Satellite Drive Mississauga, ON L4W 5K7 Canada Phone: 416-679-4207 www.conagrabrands.ca/en Conagra Brands, offering products such as Duke’s Shorty Sausages, Slim Jim Meat Sticks, BIGS Sunflower Seeds, and Orville Redenbacher Popcorn. Continental Store Fixture Group Inc 241 201-2052 192 Street Surrey, BC V3Z 0N2 Canada Phone: 778-545-1646 Fax: 778-545-1199 Toll Free: 1-800-663-4674 www.continentalsfg.com Continental is a leading Canadian supplier of stocked retail shelving and made to order custom mill work. COUNTRY STYLE MR. SUB 156 Building 1-2 East Beaver Creek Road Richmond Hill, ON L4B 2N3 Canada Phone: 905-762-4667 Fax: 905-764-0476 www.countrystyle.com www.mtygroup.com QSR offering freshly ground coffee, baked goods, and MR.SUB sandwiches. Creative Door Services Ltd. 126 14904-135 Avenue Edmonton, AB T5V 1R9 Canada Phone: 780-483-1789 Fax: 780-444-2628 Toll Free: 1-888-621-3667 @creativedoor www.creativedoor.com Safedrive car wash door and operator system. Direct drive operator with springless door system, providing million door cycles and reduced maintenance. CTM Design Services Ltd. 258 210-340 Midpark Way SE Calgary, AB T2X 1P1 Canada Phone: 403-640-0990 Fax: 403-259-6506 Toll Free: 1-800-640-0990 @CTMDesignServ www.ctmdesign.ca CTM Design is Canada’s leading full service design firm that specializes in fully integrated design solutions for convenience stores, car washes, and gas stations.

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DAS Companies Inc. 262 724 Lawn Road Palmyra, PA 17078 United States of America Phone: 416-986-8646 Fax: 1-855-542-6265 Toll Free: 1-855-542-6264 www.dasinc.com DAS is at home in any c-store. We offer guaranteed sales on leading categories: mobile, sunglasses, apparel, automotive, gifts, novelties, electronics and more. Drainvac International Inc. 370 150 Brunet Mont-Saint-Hilaire, QC J3H 0M6 Canada Phone: 450-467-1448 Fax: 450-467-2225 Toll Free: 1-800-408-1448 www.drainvac.com For 35 years, Drainvac International has specialized in the engineering and manufacturing of commercial and industrial cleaning systems worldwide. Exact One Ltd. 4631 Manitoba Road SE Calgary, AB T2G 4B9 Canada Phone: 403-287-9411 Fax: 403-214-5999 Toll Free: 1-800-492-4226 www.exacta.com Car wash entry and control system specialists. EMV payment systems with Interac debit.

508

Extrutech Plastics 228 5902 West Custer Street Manitowoc, WI 54220 United States of America Phone: 920-684-9650 Fax: 920-684-4344 Toll Free: 1-888-818-0118 www.epiplastics.com Extrutech will exhibit our quality line of plastic wall and ceiling panels and our concrete wall forms and doors. Made in USA. 20 Year Warranty. Food Service Solutions Inc. 141 2-6599 Kitimat Road Mississauga, ON L5N 4J4 Canada Phone: 905-363-0309 Toll Free: 1-800-668-8765 www.foodservicesolutions.ca FSS, Inc. works with operators to optimize their kitchens through our nationwide network of executive chef consultants, leading global equipment brands and the industry’s best service and support. Distributor of Scotsman Ice Systems, Amana, LAINOX, Brunner Anliker and many more. Furever Clean Dog Wash 163 1654 Brousson Drive Victoria, BC V8N 5M9 Canada Phone: 250-217-9433 www.fureverclean.ca Furever Clean is the Canadian distributor for the K9000 Self Serve Dog Wash. The K9000 is a world leader in self serve dog wash stations and complement all types of businesses looking to increase customer traffic and revenue.

SHOW LISTINGS

GREATER VANCOUVER OCTOBER 29 & 30, 2019

Gallop Brush Co. 373 558 Morrice Boulevard Imlay City, MI 48444 United States of America Phone: 1-810-721-7255 Fax: 1-810-721-7257 Toll Free: 1-866- 242-5567 www.gallopbrush.com Manufacturer of car wash brushes, cores, and ClearView high speed roll up doors.

Harlan Fairbanks 260 1780 Selkirk Avenue Winnipeg, MB R2R 0N6 Canada Phone: 204-697-1779 Fax: 204-697-1789 www.harlans.ca Harlan’s is a provider of products, equipment and programs to the convenient store industry. From Slush Puppie to coffee solutions, Harlan’s provides programs to boost your revenue.

GIR North America Inc. 1001 rue Lenoir Montreal, QC H4C 2Z6 Canada Phone: 514-600-6190 Toll Free: 1-844-447-6236 www.gir-na.com @GIR_FMS Fuel Management System, Cardlock, Fleet, Software, Control System.

HBI Canada 362 520 East Kent Avenue South Vancouver, BC V5X4V6 Canada Phone: 604-261-0207 Fax: 604-261-4934 Toll Free: 1-866-420-4372 www.hbicanada.com HBI Canada is home to RAW Rolling Papers! HBI’s mission is to increase smokers’ enjoyment by producing the very best RollYour-Own and Make-Your-Own products in the marketplace.

342

Hamilton Manufacturing Corp. 363 1026 Hamilton Drive Holland, OH 43528 United States of America Phone: 419-867-4858 Toll Free: 1-800- 837-5561 @hamiltonmfgcorp www.hamiltonmfg.com Hamilton designs, manufactures, and supports pay stations, change machines, cloud-based site management, software, and custom mobile apps for the car wash industry.

Health Canada - Tobacco and Vaping Compliance and Enforcement Program 340 www.canada.ca/en/health-canada/services/smoking-tobacco.html Government of Canada, Tobacco, Vaping, Legislation, Healthy Living, Tobacco Retailers, Tobacco Manufacturers, Vaping Retailers, Vaping Manufacturers, Regulations, Tobacco and Vaping Products Act, TVPA.

Hi-Performance Distributors 504 300-26825 56th Avenue Langley, BC V4W 3Z9 Canada Phone: 604-856-5336 Toll Free: 1-800-661-0063 www.hi-performance.ca Hi-Performance is a Canadian distributor of Collectables, including Diecast Cars, Model Cars, Hot Wheels, and Tin Signs. Increase your merchandise sales with the fun products we offer! Hydro Wash System 500 1501 Main Street North Vancouver, BC V7J 1E1 Canada Phone: 604-986-9274 www.hydrowashsystem.ca Wash away your competition with Hydro Wash System, the top of the line touchless carwash with affordable prices. Horse and Buggy Brands/Golden Bonbon 371 Unit L-120 Turnbull Court Cambridge, ON N1T 1H9 Canada Phone: 519-620-8572 Fax: 519-620-8573 Toll Free: 1-877-473-2688 www.horseandbuggybrands.com Horse and buggy brands, We are peanut roasters and candy packagers with many unique peanut flavours including Dill pickle and S & V. We also distribute jujube nougat bars in both regular and sour .

“The Only Door Manufacturer With Remote Access & Freeze-Out Protection”

C-STORE COMMANDER POS

Purchase Direct for Added Value BayWatch Installation & Service Now Available In Ontario

GI LB AR CO, WAYN E & BENN ET T P AY @ P UMP FUL LY CON TR OL LED BAC K OFFI CE & PO S SYSTE M L OYALTY, FL EET , GI FT CAR D P RO CESSI N G AN D MER CHAND IS E DI SCOUN TIN G REAL TI ME SAL ES, I NV EN TOR Y M ANA GEM EN T & D YNAM I C R EPOR TI NG MOB I LE P AYMEN TS

1-888-235-0800 www.baywatchdoors.com

2 4 / 7 C UST OMER SUP P OR T

WWW. I NF O NE T - TE C H . C OM

SHOW LISTINGS

Icon Containment Solutions, LLC 158 Suite D1-905 N. Main Street North Salt Lake, UT 84054 United States of America Phone: 1-855-379-7867 www.icontainment.com World’s leading supplier of secondary containment sump leak repair and corrosion prevention solutions with expert technical support. InfoNet Technology Corporation 267 202-3480 Gilmore Way Burnaby, BC V5G 4Y1 Canada Phone: 604-689-7589 Fax: 604-689-7599 Toll Free: 1-888-925-8125 www.infonet-tech.com We create powerful point-of-sale and fuel management software system for today’s competitive retail fueling, convenience store and unattended card lock fueling marketplace. Infyniti Scales 120 Brunel Road Mississauga, ON L4Z 1T5 Canada Phone: 905-568-1823 x 111 Toll Free: 1-800-315-7625 www.infynitiscales.com

331

Innovative Control Systems 235 1349 Jacobsburg Rd. Wind Gap, PA 18091 United States of America Phone: 610-881-8000 Fax: 610-881-8100 Toll Free: 800- 642-9396 www.icscarwashsystems.com Innovative Control Systems is defining the world of car washing technology; now offering EMV chip/debit hardware and software solutions for all segments: conveyor, in-bay automatics, and self-service. JTI-Macdonald Corp. 147 1601-1 Robert Speck Parkway Mississauga, ON L4Z 0A2 Canada Phone: 1-800-363-0490 www.jti.com JTI-Macdonald Corp. is a part of JTI (Japan Tobacco International, a leading international tobacco company. Primary brands in Canada include Export A, Macdonald Special, LD, Camel, Winston and American Spirit. JTI Canada Tech Inc. 253 1601-1 Robert Speck Parkway Mississauga, ON L4Z 0A2 Canada Phone: 1-800-363-0490 @JTI_global www.jti.com JTI Canada Tech Inc., also a part of JTI, is the importer of Logic Compact vape. With some of the world’s leading brands, JTI is quickly becoming a global player in the e-cigarette and tobacco vapour categories.

Open Merchandisers

............................................

JUUL Labs Canada, Ltd. 239 600-317 Adelaide St W Toronto, ON, M5V 1P9 Canada www.juul.ca JUUL Labs mission is to provide Canada’s five million adult smokers with a real alternative to cigarettes. JUUL is intended for current adult smokers only. Keller Equipment Supply Ltd. 153 116-1525 Broadway Street Port Coquitlam, BC V3C 6P6 Canada Phone: 604-945-5550 Fax: 604-945-8213 Toll Free: 1-888-535-5373 www.keller.ca Keller Equipment Supply Ltd. has been the western Canadian “go to” industry leader for fueling solutions, dispenser modernization, and quality petroleum equipment since 1968. Kretek International 171 985 Westport Crescent Mississauga, ON L5T 1E8 Canada Phone: 416-948-5909 Fax: 1-800-611-7423 Toll Free: 1-866-286-8585 www.kretek.ca Speciality Tobacco Products. Natural Cigarettes, Organic Cigarettes. Roll your own fine cut Tobacco. Mass market Cigars. Hand rolled Premium cigars. Cigarillos Blunt Wraps. Non tobacco Blunt wraps. Hemp Wraps. Humidors/lighters/pipes. Glass/Hookahs/Butan.

Viper Elite Digital ...... ...................................

Endless Design for Continuous Lineups

High impact digital merchandising

New High Efﬁciency Air Screen Technology

Track sales & ﬂavor preferences

Electronic Control System to Maintain Balanced Temperatures

Remote monitoring capabilities

��

Visit us in Greater Vancouver at booth #346

GREATER VANCOUVER OCTOBER 29 & 30, 2019

Leak Technologies Solutions Ltd. Box 71119-8060 Silver Springs Boulevard NW Calgary, AB T3B 5K2 Canada Phone: 403-637-0280 Toll Free: 1-866-565-2611 www.leaktechsol.ca Tank and line testing.

359

Maqabim Distributors Ltd. 485 Union Avenue West Winnipeg, MB R2L 0E1 Canada Phone: 1-855-378-2767 www.maqwholesale.com

164

Mark VII Equipment 365 Unit 1-623 South Service Road Grimsby, ON L3M 4E8 Canada Phone: 905-464-0608 Toll Free: 1-866-658-9274 www.markvii.net Car Wash Equipment, Chemicals and Service. Tunnels, Rollovers, Self Serve/ Wand Wash. MI Petro Construction & Supply Inc. 355 4330-116th Avenue SE Calgary, AB T2Z 3Z9 Canada Phone: 403-589-3121 www.mipetrogroup.com MI Petro provides retail petroleum solutions as well as experts providing sales, construction, electrical and service. Mini Melts of Canada 366 1-1313 44 Avenue NE Calgary, AB T2E 6L5 Canada Phone: 403-537-1045 www.mini-melts.ca @minimeltscanada Mini Melts is a unique frozen dessert. Our pre-packaged ice cream comes in small delicious kernels that you eat it with a spoon! Mondo Products Company Limited 328 1-695 Westney Road S Ajax, ON L1S 6M9 Canada Phone: 905-426-9339 Fax: 905-426-5240 Toll Free: 1-800-465-5676 www.mondo-products.com Mondo Products is a Canadian owned company that manufactures and markets cleaners equipment and technology to service the car wash industry.

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SHOW LISTINGS

Manufactured in Western Canada by Pumps & Pressure Inc. SELF SERVE PUMP STAND

IN BAY AUTOMATIC

• Commercial Vehicle Wash Equipment • Cleaning Equipment

• Waste Water Recycle

• Air Compressors

• CAT Pumps & pumps of all kinds

• Cleaning Chemicals

• Pressure Washers

• Automatic Car Washes

1.888.430.9359

• Car Wash Accessories

www.pumpsandpressure.com

FOR YOUR CONVENIENCE Contour

U-Link

Waste/Windshield Centre

Merchandiser

MPoint Communication Ltd. 240-2268 No. 5 Road Richmond, BC V6X 2T1 Canada Phone: 604-282-1505 Fax: 604-304-1686 www.mpointcommunication.com

170

Mystical Distributing Company Ltd. 1-2610 Progressive Way Abbotsford, BC V2T 6H9 Canada Phone: 604-852-1110 Toll Free: 1-800-563-1110 www.mysticaldistributing.com

347

National Carwash Solutions 268 1500 SE 37th Street Grimes, IA 50111 United States of America Phone: 515- 986-3700 Toll Free: 1-800- 284-7956 www.nationalcarwashsolutions.com National Carwash Solutions (NCS) is North America’s premier car wash provider for equipment, service, and cleaning solutions. NCS services independent operators, c-stores, fleets and auto dealers nationwide. National Energy Equipment Inc. 247 1850 Derry Road East Mississauga, ON L5S 1Y6 Canada Toll Free: 1-866-574-5100 www.nee.ca Canada’s national petroleum commercial equipment distributor, sales and service for industry-leading products and technology. From fuel dispensers and card lock systems to fuel storage and monitoring control systems. North Shore Tobacco Canada 269 458-124 Norfolk Street N Simcoe, ON N3Y 4L5 Canada Phone: 519-428-3332 Fax: 519-428-2333 www.northshoretobacco.com North Shore Tobacco is based out of Norfolk Country Ontario. Proudly owned by Ontario farmers. Natural and certified organic tobacco products. NoviClean Inc. 409 1045-19 Avenue SE Calgary, AB T2G1M1 Canada Phone: 403-815-8977 www.noviclean.ca NoviClean Inc. is a vehicle wash equipment design, service, sales and distribution company serving the vehicle wash markets in Western Canada. Now Prepay 233 301-365 Evans Avenue Toronto, ON M8Z 1K2 Canada Phone: 1-800-253-2111 www.nowprepay.ca @paymentsource.ca Known for product quality and speed of service, we offer prepaid, mobile top ups, and financial products to over 15,000 retailers across Canada.

BOOTH #3401

Call 816.813.3337 / www.forteproducts.com Strong plastic

Made in USA

Weatherproof

P.D. McLaren Limited 375 104-9725 192nd Street Surrey, BC V4N 4C7 Canada Phone: 604-371-3732 Fax: 778-298-2295 www.pdmclaren.com Commercial Fleet Dispensers/Pumps & Fuel Management Systems. DEF Dispensers/Tank Packages. Aviation & Marine Fuel Dispenser Cabinets. Bulk Metering & Pumping Equipment. Vehicle Wash Systems.

CCentral.ca

GREATER VANCOUVER OCTOBER 29 & 30, 2019

PDQ Manufacturing, Inc. 332 1698 Scheuring Road De Pere, WI 54115 United States of America Phone: 920-983-8333 Fax: 920-983-8330 Toll Free: 1-800-227-3373 www.pdqinc.com PDQ Manufacturing is recognized as the technological leader in vehicle wash systems, providing superior quality, outstanding support, and products that contribute to our customersâ&#x20AC;&#x2122; profitability. PetroMaxX Construction BC LLP 146 15-3347 262nd Street Langley, BC V4W 3V9 Canada Phone: 604-856-1566 www.maxxgroupofcompanies.ca/petroleum/ PetroMaxX is a national petroleum contractor specializing in Project Management, construction of gas stations and convenience /branded food partner stores. Our extensive experience in design-build, new construction, tenant improvements, and site upgrades suits all client needs from pre-development services to turn-key construction and occupancy. PM Electric/PM Signs Corporation 240 12925-148th Street Edmonton, AB T5L 2H9 Canada Phone: 780-454-6490 Fax: 780-451-0337 Toll Free: 1-800-454-6490 @PMSigns www.pmsigns.ca / www.pmelectric.ca Manufacturer of canopy fascia, building, and pylon signage. Design builder of custom Forecourt Distribution Panels. Complete electrical installation services and full signage rebrand project management. Raimac Industries 160 9744-197B Street Langley, BC V1M 3G3 Canada Phone: 604-324-1466 Fax: 604-327-1334 Toll Free: 1-888-477-7701 www.raimac.com Raimac Industries has been supplying food equipment & supplies to western Canada for over 100 years! Rockyview Industries Inc. 134 7110 Fairmount Drive SE Calgary, AB T2H 0X4 Canada Phone: 403-293-1188 Fax: 403-293-1717 Toll Free: 1-888-447-20177 www.rockyviewindustries.com Western Canadaâ&#x20AC;&#x2122;s Car Wash Experts installing and maintaining custom designed car washes with quality equipment and dependable service since 1992. SoBrite Technologies 367 809 W. Center Street Eureka, IL 61530 United States of America Phone: 309-467-2335 Fax: 309-467-2539 Toll Free: 1-800-762-7483 www.sobrite.com SoBrite Technologies designs and manufactures water reclaim systems, spot-free water units, water-softner and proven car wash reclaim odour control systems.

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SHOW LISTINGS

SONNY’S The Car Wash Factory 405 5605 Hiatus Road Tamarac, FL 33321 United States of America Phone: 1-800-327-8723 Fax: 1-800-495-4049 Toll Free: 1-800-327-8723 www.sonnysdirect.com Sonny’s “The CarWash Factory” the world’s largest manufacturers of conveyorized tunnel car washes in the world will exhibit its full line of tunnels, mini-tunnels, controls, Diamond Shine chemistry, and Mr. Foamer signage and marketing equipment. SSCS, INC. 142 Suite A-650 Work Street Salinas, CA 93901 United States of America Phone: 1-831-755-1800 Fax: 1-831-422-1463 Toll Free: 1-800-972-7727 www.sscsinc.com Since 1981, SSCS has been the leader in retail Petroleum and Convenience stores’ Back Office Software with the finest training support in the industry. STLTH Vape 60 Munik Acres Scarborough, ON M1E4Y6 Canada Phone: 336-523-5046 www.stlthvape.com

401

Sureguard/Post Guard 243 5 Shirley Avenue Kitchener, ON N2B 2E6 Canada Phone: 519-772-1976 Fax: 519-570-4333 www.sureguard.ca Bollard Covers, Bolt Downs, Heightguard, Park it Curb, Speed Bump, Corner Guard, Light Pole Guard, Steel Tubing, Flex Bollard, Decals/Logo, Flex Post. Talius PO Box 3279-5501 46th Avenue SE Salmon Arm, BC V1E 4S1 Canada Phone: 250-832-7777 Fax: 250-832-8577 www.talius.com Rollshutters. Habitat Screens. Security Solutions.

129

The Great Canadian Meat Company Inc. 229 1390 Hopkins Street Whitby, ON L1N 2C3 Canada Phone: 905-666-9395 Fax: 905-666-0224 @GrtCanadianMeat www.greatcanadianmeat.com We are a proudly Canadian company that produces the highest quality meat snacks and gourmet products that you can find coast-to-coast. We make the snacks Canadians need to Power Up.

Tommy Car Wash Systems/Tommy’s Express 131 Suite 300-581 Ottawa Avenue Holland, MI 49423 United States of America Phone: 616-834-0535 @tommys_express www.tommycarwash.com www.tommys-express.com Tommy Car Wash Systems has 50-years of history bringing industry-changing innovations to market through a process of development, testing, and success in their corporate-owned operations. Top Star Hitech Ltd. 111-3825 34th Street NE Calgary, AB T1Y 6Z8 Canada Phone: 403-608-5051

135

Transchem Group 139 1225 Franklin Boulevard Cambridge, ON N1R 7E5 Canada Toll Free: 1-800-265-9100 www.transchem.com Transchem Group has been a family-owned-and-operated business for over 40 years. We manufacture and supply car wash chemicals, business innovation, and self-serve equipment.

GREATER VANCOUVER OCTOBER 29 & 30, 2019

Turtle Wax Pro 137 300-350 S Northwest Highway Park Ridge, IL 60068 United States of America Phone: 1-800-265-9100 www.turtlewaxpro.com Turtle Wax Pro offers a wide selection of chemicals and marketing programs designed for the car wash industry. Get results, performance, and support with Turtle Wax Pro. Unitec 166 7125 Troy Hill Drive Elkridge, MD 21075 United States of America Phone: 443-561-1200 Fax: 410-579-6827 www.StartwithUnitec.com @Unitec_CarWash Unitec has been the recognized leader in payment entry systems for the car wash market for over three decades and has recently expanded into Canada. VMS Distribution 232 PO Box 395 Brentwood Bay, BC V8M 1R3 Canada Phone: 250-652-2376 Fax: 250-652-8604 valleymusicsales.com Full Service Distributor of consumer goods including media entertainment, tech & electronics, seasonal, headware, gloves, smoking accessories, camping accessories and other novelty items.

Vomar Industries Inc. O/A Tank Traders 265 PO Box 190 54 Rue Principal La Salle, MB R0G1B0 Canada Phone : 204-736-4288 Toll Free : 1-866-553-2131 www.tanktraders.com Tank Traders supplies a national network of retailers with propane tank exchange program. Consumers exchange their empty cylinders with a pre filled replacement. Wash World Group Inc. 332 111-1919 27th Avenue NE Calgary, AB T2E 7E4 Canada Phone: 403-250-1374 www.washworldgroupinc.com Car wash equipment (LaserWash®) sales, installation and service company. Washworld Inc. 140 2222 American Boulevard DePere WI 54115 United States of America Phone: 920-338-9278 Fax: 920-338-9790 Toll Free: 1-888-315-7253 @Washworld www.washworldinc.com Washworld, Inc. manufactures Razor, Razor EDGE and Razor XR-7 touch- free vehicle wash systems and Profile soft touch vehicle wash systems.

Wellness Foods Inc. 368 Ground Floor-355 Adelaide Street West Toronto, ON M5V 1S2 Canada Phone: 905-484-7902 @simplyproteincanada www.simplyprotein.ca High protein, 4g of sugar or less Bars, Chips, Protein Cookies, Kids Bars Non-GMO, Gluten-Free, plant based Vegetarian, Kosher, high fibre peanut free bar and kids’ Bars. Western Oil Services Ltd 165 19840 57A Avenue Langley, BC V3A 6G6 Canada Phone: 604-514-4787 Fax: 604-514-4688 Toll Free: 1-800-663-2097 @wosservices www.westernoilservices.com Sales, Service and Installations of Retail and Commercial Fuel Storage and Dispensing Equipment. ITA Certified Technician and Installers. Pump Calibrations, Tank and Line Testing Services.

Interac Debit In-Bay Tap In Bay

PCI and EMV Certified

• Quick and Easy • Accepts All Forms of Payment • Lower Transaction Fees • Retro Fit Options Available

Visit us in BOOTH 508!

Car Wash Systems

www.exacta.com | sales@exacta.com | 1-800-492-4226

SHOW LISTINGS

GREATER VANCOUVER OCTOBER 29 & 30, 2019

Western Refrigeration & Beverage Equipment Ltd. 346 1232-36th Avenue NE Calgary, AB T2E 6M8 Canada Phone: 403-250-9656 Toll Free: 1-888-443-1946 www.wr.ca Canadaâ&#x20AC;&#x2122;s leading distributor of food store and beverage equipment since 1946. Wiz-Tec Computing Technologies Inc. 159 Bay 17-4312 Ogden Road SE Calgary AB T2G 4V3 Canada Phone:, 403-250-8660 www.wiz-tec.com Canadian point of sale and payment solutions for c stores, gas retail, and car wash XSite Group Inc. 231 16-140 Welland Avenue St. Catharines, ON L2R2N6 Canada Phone: 905-346-0864 Toll Free: 1-888-346-0864 www.xsitegroup.ca XSite Group Inc. Is a software development company offering back office software and inventory management solutions designed to increase efficiencies for Retail Convenience Stores (C-Stores) and Gas Stations. Zep Vehicle Care, Inc. Suite 230-2930 Waters Road Eagan, MN 55121 United States of America Phone: 651-251-7014 www.zepvehiclecare.com Zep Vehicle Care takes an innovative approach to our products and programs, all with the intent to maximize the ROI of your car wash.

Visit us at Vancouver CARWACS Booth # 240

234

Suppliers, what’s new in your product line? Contact Elijah Hoffman at 647.558.0103 or ehoffman@ensembleiq.com.

Product News HOTSHOT AUTOMATIC CAR WASH

is designed and manufactured by Pumps & Pressure Inc. in Western Canada. Our gantry is 4WD and aluminum construction, standard stainless steel framework, HydraFlex chemical manifolds and rotating nozzles along with industry leading pumps. Other options to include are remote diagnostics and in-bay operator interface which compliment this Canadian Made Automatic car wash. 1.888.430.9359 | www.pumpsandpressure.com

INFONET - POS & BACK OFFICE SOLUTION FOR GAS STATIONS AND C-STORES We create powerful point-of-sale and fuel management software systems for today’s competitive retail fueling, convenience store and unattended/card lock fueling marketplace. At Infonet, our mission is to provide superior software technologies and proven consulting and user support services to our clients. We pledge to achieve this by integarting our systems into our customers’ operating environments and enhancing their ability to do business more efficiently and profitably. Our products are installed across North America ranging from single site gas station/ convenience stores to major chains.

PRODUCTS, EQUIPMENT AND SERVICES

AERODRY - ENVIRONMENTALLY FRIENDLY DRYING SYSTEMS

Be a good neighbor! Aerodry manufactures environmentally friendly car wash drying systems built for performance. The only dryers with sound levels low enough for installation near employee work areas. Meets requirements for sound emission to neighboring properties. Maintenance free stainless steel. Energy efficient. Complements any brand of car wash equipment. Indoor or outdoor installation. Join the global list of Aerodry's many satisfied customers! 303.438.0120 | www.aerodrysystems.com

PRECISION TESTING AND INSPECTION SPECIALISTS

• Precision leak testing company for all your underground leak testing requirements. • Leak testing for all your aboveground testing requirements. • Very little disruption to your day to day operation. • CPCA certified technicians. • Competitive rates. • Helium Pinpoint leak locating service. • 3rd party inspection of underground and aboveground storage tank system. 1.866.565.2611 | www.leaktechsol.ca

888.926.8125 | www.infonet-tech.com

CCentral.ca

SEPTEMBER/OCTOBER 2019

| 33

CANADIAN CANADIAN CANADIAN CANADIAN

CARWASH CARWASH CARWASH CARWASH ASSOCIATION ASSOCIATION ASSOCIATION ASSOCIATION DIRECTORS Christopher Armena –

MARK VII

ENERGY PRODUCTS, FEDERATED

CO-OPERATIVES LIMITED MONDO PRODUCTS CO LTD CATEGORY PORTFOLIO MANAGER,

CAR WASH, SUNCOR ENERGY CROSSTOWN CAR WASHES

Sameer Haidari – circle k – CENTRAL CANADA division BAYVIEW CAR WASH LTD. CLEANING SYSTEMS INC. VALET CAR WASH

Terry McGowan Tim Walker –

REVINMEDIA

All CCA members can access the full national and provincial 2018 and 2019 results on the CCA website. Also available online is information on how you can add your carwash site to the C ANCADIAN AN ADIAN AV ERAGE AV ERAGE REV REV EN UE ENPER UE PER C YC C LEYC LE WVR at www.canadiancarwash.ca/wvr.

C ANCADIAN AN ADIAN AV ERAGE AV ERAGE REV REV EN UE ENPER UE PER C YC C LEYC LE

BIG CITY AUTO N TRUCK

$10.50 $10.50

WASH

4 2 Q 01 1 6 20 17 Q 1 20 Q 1 2 7 20 17 Q 2 20 Q 1 3 7 20 17 Q 3 20 Q 1 4 7 20 17 Q 4 20 Q 1 1 7 20 18 Q 1 20 Q 1 2 8 20 18 Q 2 20 Q 1 3 8 20 18 Q 3 20 Q 1 4 8 20 18 Q 4 Q 201 1 8 20 19 Q 1 Q 20 2 1 20 9 19 Q 2 20 19

3 Q

3 Q 16 20 3

Jaime Richards

Event Coordinators

Accountant Ricky Nason

C ANCADI ANAN ADIAV ANERAGE AV ERAGE REV REV EN UE ENPER UE PER SITESITE

Kristen Lépine Dos Santos, CAE

NATIONAL OFFICE Director of Operations

4 16 20 16

$9.79 $9.79 $9.22 $9.22 $8.59 $8.59 $8.73 $8.73 $9.02 $9.02 $8.80 $8.80 $8.65 $8.65 $8.93 $8.93 $8.31 $8.31 $10.50 $10.50 $8.22 $8.22 $9.79 $9.79 $7.59 $7.59 $9.22 $9.22 $8.59 $8.59 $8.73 $8.73 $9.02 $9.02 $8.80 $8.80 $8.65 $8.65 $8.93 $8.93 $8.31 $8.31 $8.22 $8.22 $7.59 $7.59

7-ELEVEN

Mark Vella –

Rudy van Woerkom –

MOSAIC

Karen Smith –

4 16 20 16

Jason Kaye –

Sean McBride –

Undertaken for the CCA by Kent Group Ltd., a research firm specializing in the gas station and car wash industry, the WVR is a national quarterly survey of carwash sites across Canada. Members of the CCA may participate in the WVR program and receive results specific to their region at no additional cost.

Domenic DiMonte –

The Canadian Carwash Association (CCA) has just released the 2019 second quarter results of the Wash Volume Report (WVR). Average revenue per site was up by (.11%) at ($68,695) compared to ($68,621) in the second quarter of 2018. The average cycles per site was up by (1.10%) at ($ 7,688) compared to ($7,604) for the second quarter in the previous year. The average revenue per cycle was down (0.1 %) at ($8.93).

Jeff Beam – Cristina Caruso –

W ASH VOLUME REPORTS NOW AVAILABLE

Morgan Arnelien –

Martha Feenstra

$90,475$90,475 $76,660$76,660

Canadian Carwash Association Please note our new address: 411 Richmond Street East, Suite 200

SEPTEMBER 2019

$52,409$52,409 $45,501$45,501

$72,958$72,958

$60,037$60,037 $56,787$56,787

$68,621$68,621

$83,103$83,103 $64,581$64,581

$52,323$52,323

$68,695$68,695

Toronto, Ontario

C ANCADI ANAN ADIAV ANERAGE AV ERAGE C YC C LES YC LES PER PER SI TESI TE

› THE CARWASH SEARCH FEATURE ‹

10,097 10,097

canadiancarwash.ca/search http://canadiancarwash.ca/search

10,454 10,454

6,881 6,881 6,947 6,947 6,906 6,906

7,604 7,604

9,760 9,760 7,688 7,688

6,594 6,594 5,677 5,677

Q 4 2 Q 01 1 6 20 16 Q 1 2 Q 01 3 6 20 17 Q 3 2 Q 01 3 7 20 17 Q 3 20 Q 1 4 7 20 17 Q 4 20 Q 1 1 7 20 17 Q 1 20 T1 1 20 7 18 T1 20 Q 1 3 8 20 18 Q 3 20 Q 1 4 8 20 18 Q 4 20 Q 1 1 8 20 18 Q 1 2 Q 01 2 8 20 19 Q 2 Q 2 3 01 20 9 19 Q 3 20 19

5,956 5,956 5,478 5,478

Q 4

on the CCA website has close to a thousand member sites on it. Is your carwash listed? Member sites are listed for free, so contact office@canadiancarwash.ca for more information.

2 Q 01 4 6 20 16 Q 4 2 Q 01 1 6 20 17 Q 1 20 Q 1 2 7 20 17 Q 2 20 Q 1 3 7 20 17 Q 3 20 Q 1 4 7 20 17 Q 4 20 Q 1 1 7 20 18 Q 1 20 Q 1 2 8 20 18 Q 2 20 Q 1 3 8 20 18 Q 3 20 Q 1 4 8 20 18 Q 4 2 Q 01 1 8 20 19 Q 1 Q 201 2 9 20 19 Q 2 20 19

20 3

CARWASH

FIND A

M5A3S5

INDUSTRY INDUSTRY FORUM FORUM INDUSTRY INDUSTRY FORUM FORUM DEDICATED TO SHARING KNOWLEDGE AND BEST PRACTICES IN THE CARWASH INDUSTRY

EGISTER NOW! CARWACS WILL BE ON OCTOBER 29TH & 30TH 2019 AT TRADEX IN ABBOTSFORD, BC!

THE CARWASH DEDICATED AGENDA HAS BEEN RELEASED. BE SURE TO REVIEW AND PLAN OUT YOUR SCHEDULE. DAY 1 - CARWASH TOUR

Hosted by the Canadian Carwash Association (CCA), the Carwash Tour is for Operators and Suppliers. Participants will enjoy a morning of networking, lunch and interactive site tours. Tour locations will be announced soon. DAY 2 - SPEAKER SPOTLIGHT

JUSTIN SALISBURY Leadership Worth Following: Discovering Meaningful Value in The Car Wash Industry From the moment Justin entered the car wash industry, he believed it was underappreciated. It didn't take very long for him to see that this industry was a gift at preparing people for the future because it provided endless educational and problem-solving opportunities! His program, Leadership Worth Following, helps to connect the dots on how to turn your business into a high-retention,

engaged and contributing force to be reckoned with that will surely benefit your bottom line. Speaker Bio: Justin hails from the town of Haslett, Michigan where his interest in trades and the great outdoors took hold. Him and his wife currently reside in Cheyenne, Wyoming where they remain guests in a home of which the bank owns and their daughters run. His education and experience in trades, business and leadership led him to discover his purpose that seems unwavering: to serve others in helping them discover their value. As the current Chief Operations Officer, his purpose comes to life daily at Breeze Thru Car Wash as he serves the lives of 170+ employees by empowering them to be successful to prepare them for the future. As a compliment to his day-to-day, Justin created the program, Leadership Worth Following, a program that focuses on influential actions that result in positive outcomes within the car wash industry.

CCA’S PARTNERSHIP WITH CFIB: ARE YOU LEVERAGING YOUR CCA MEMBERSHIP TO THE FULLEST?

VALET CAR WASH AND JIFFY LUBE

When National President Jason Kaye talks about CCA’s partnership with the Canadian Federation of Independent Businesses (CFIB), he says the payment processing discounts they offer easily pays for the cost of his CCA membership, which is a benefit he’d like to see more Members using.

Looking to get into the Car Wash and Quick Lube business? Here’s a great opportunity for a new or existing operator looking to expand. Complete turnkey modern car wash and quick lube, includes all car wash equipment including full tunnel package, pay station, POS system and outside vacs. Jiffy lube comes with all equipment and POS operating system. Business consists of a 150 foot exterior tunnel wash with a large subscription base, interior cleaning bay, 4 bay quick lube with full basement, lots of storage. 3 furnished upstairs offices. Located in a high traffic area in Etobicoke, Ontario.

Are you leveraging the discounts CFIB offers? The most recent addition to the suite of savings includes 20% off Quickbooks, the most widely used accounting software. To review the full benefit offering, visit cfib-fcei.ca to learn more.

Asking $379,000 for both car wash and quick lube business. Please contact Mike Black for further information at mdblack@sentex.net or 519-654-2570.

CANADIAN CANADIAN CARWASH CARWASH ASSOCIATION ASSOCIATION CANADIAN CANADIAN CARWASH CARWASH ASSOCIATION ASSOCIATION

The future is

FRICTIONLESS TECHNOLOGY ENHANCES IN-STORE EXPERIENCE

Vaping 2.0: Product evolution CBD-infused: The next big thing PLUS Wake up to coffee

SEPTEMBER/OCTOBER 2019 CCentral.ca @CSNC_Octane PM42940023

NEW LOCATION Greater Vancouver

Oct. 29 & 30

SEPTEMBER/OCTOBER 2019 Volume 2 | Number 5

31 CONTENTS ILLUSTRATION BY Sébastien Thibault

05 Editor’s Message The more things change... 06 The Buzz People, places, news and events 08 Quick Bites Going greenfield 12 Top Ops Cannabis at work 14 Top Ops A fine balance: Merchandising 17 Feature Wake up to how coffee can drive revenue 23 Spotlight Dépanneur Mokolo: A taste of home 27 Spotlight Alcona Esso Gas and Variety: In the driver’s seat 31

COVER STORY The future is frictionless

36 Category Check Vape expectations

ADVERTISERS

38 Backtalk Dave Bryans: Thirsty for change Canadian Federation of Independent Business...26 CCentral.ca............................................................. 37 Conagra Foods.........................................................4 Convenience U CARWACS Show........................30 Ford Motor Company of Canada..........................13 Hershey Canada Inc................................................15 ITWAL Ltd...............................................................35 Kracks......................................................................29 Mondelez Canada.................................................... 2 National Smokeless Tobacco Company.............. 22 PizzaForno................................................................21 Regal Confections....................................... 11, 25, 33 Scandinavian Tobacco Group Canada..................19 Star Women in Convenience.................................16

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CONVENIENCE NEWS & INSIGHTS DELIVERED TO YOUR IN-BOX TWICE WEEKLY. The latest on foodservice, store solutions, tobacco/vaping and more. Don’t miss our e-newsletters! Sign up today at www.CCentral.ca

SEPTEMBER/OCTOBER 2019

SNACKS FOR EVERY SHOPPER

¹ IN THE U.S. K C A N S T MEA CANADA! THE #1 IN OME IS NOW C L E EW YOU’R

+9%

GROWTH IN DOLLAR VOLUME

THIS SPONSORSHIP IS NOT AFFILIATED WITH OR ENDORSED BY TACO BELL. TACO BELL LOGO AND TACO SUPREME ARE REGISTERED TRADEMARKS OF TACO BELL CORP.

Source: Nielsen Strat Planner, Market: Gas and Convenience Channel, Latest 52 Weeks, PE July 20, 2019

Source: ¹ IRI, Meat Sticks category, PE April 21, 2019 | TABASCO and the DIAMOND and BOTTLE LOGOS are trademarks of and licensed by McIlhenny Company, Avery Island Louisiana, USA 70513. TABASCO. Com.

The more things change…

SALES & EVENTS COORDINATOR Claudia Castro DESIGN AND PRODUCTION VICE PRESIDENT, PRODUCTION Derek Estey | destey@ensembleiq.com PRODUCTION MANAGER Michael Kimpton | mkimpton@ensembleiq.com ART DIRECTOR | Linda Rapini

Welcome to our Innovation Issue, which delves into exciting changes and opportunities in the convenience sector. From the rise of CBD-infused products to the latest in vaping and expert advice on merchandising for the future, get ready for valuable insights and ideas to capitalize on the next big thing. In this fast-paced era, change is inevitable. It’s how we manage change that determines success. Research shows consumers are evolving and they expect the convenience industry to keep pace. As Eric Morris, Google’s director of retail in Toronto, points out: “They are moving fast, and retailers need to move faster. If a retailer can’t connect their customer to the right product in as few steps as possible, they will go elsewhere.” Our cover story—”The Future is Frictionless”—explores this desire for a seamless experience and illustrates how operators and industry insiders can employ technological innovations to not only better understand their customers, but also elevate the in-store experience. It’s a fascinating read, with experts predicting that within the next five years, “everything from enhanced cloud-based security to automated checkout to AI will be part of the c-store experience.” Yes, the world of convenience is changing, but these innovations boil down to doing what the industry has always done best—anticipating and adapting to customers’ needs, while providing products and services in a convenient and friendly format.

DIRECTOR OF MARKETING Alexandra Voulu | avoulu@ensembleiq.com AUDIENCE DEVELOPMENT MANAGER Lina Trunina | ltrunina@ensembleiq.com WEB OPERATIONS MANAGER Valerie White | vwhite@ensembleiq.com CORPORATE OFFICERS EXECUTIVE CHAIRMAN | Alan Glass CHIEF EXECUTIVE OFFICER | David Shanker CHIEF FINANCIAL OFFICER | Dan McCarthy CHIEF OPERATING OFFICER | Joel Hughes

CHIEF COMMERCIAL OFFICER | Jennifer Litterick CHIEF INNOVATION OFFICER | Tanner Van Dusen CHIEF HUMAN RESOURCES OFFICER | Ann Jadown EXECUTIVE VICE PRESIDENT, EVENTS & CONFERENCES Ed Several

Michelle Warren, Editor

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SEPTEMBER/OCTOBER 2019

ConvenienceChannel

THE BUZZ

CROSS-CANADA ROUND-UP

SINGLE-USE PLASTICS BAN

Canada is to ban single-use plastics as early as 2021, says Prime Minister Justin Trudeau. The specific items to be banned will be determined based on a science-based review, but the government is considering everything from water bottles to plastic bags and straws. A new Nanos Research survey shows Canadians are in favour of the ban—56% of Canadians support a total ban on single-use plastics, while 25% somewhat support a ban—and 71% are even willing to pay a small premium for more environmentally friendly alternatives to plastic. Many retailers and manufacturers are already getting ahead of the game with commitments to reduce plastic bottles and ban plastic bags.

SMOKES AND COKES 2.0

Ontario is set to get 50 more cannabis stores starting this month after the province announced in June it would consider only applicants that have their finances and retail space ready to go. This comes after several of the initial retailers were chosen through a lottery to open Ontario’s first brick-and-mortar cannabis stores, but failed to meet the deadline. In other Canadian jurisdictions that allow for the private sale of cannabis, successful retailers often include convenience stores. For instance, of the 24 retailers selected in Newfoundland and Labrador, one is a convenience store in Labrador City. Last summer, a Co-op gas-bar in Calgary was given the green light. After announcing new partnerships with cannabis-related companies, Alimentation Couche-Tard is well positioned to take advantage of the burgeoning industry. “Alimentation Couche-Tard is excited about taking a leadership role in the development of cannabis retailing excellence in this major Canadian market. We believe the Ontario Cannabis Store and private retailers will co-exist under a tightly regulated framework with common goals to protect public health and safety,” president and CEO Brian Hannasch said in a release.

| SEPTEMBER/OCTOBER 2019

PEOPLE, PLACES, NEWS AND EVENTS

ASSOCIATIONS CALL FOR RETAIL GAS MARGIN REVIEW

The Atlantic Convenience Stores Association and Retail Gasoline Dealers Association of Nova Scotia are teaming up to initiate a retail gas margin review in the province. “The last margin review and adjustment was back in 2016 and the cost of doing business sure hasn’t gotten any cheaper,” says ACSA president Mike Hammoud. “The Retail Gasoline Dealers Association has a great network of members. They’re a great organization and partnering with them just makes sense to build a stronger business case for a margin increase.”

HIP TO BE COOL

Manitoba is the Slurpee Capital of the World for the 20th year in a row, according to 7-Eleven. Despite enduring months of freezing temperatures, Manitobans consume more of the frozen drinks per capita than anywhere else in the world. “Slurpee has been the centerpiece of so many Canadian memories and we’re very proud to continue to grow with our country for years to come,” says Doug Rosencrans, GM of 7-Eleven Canada.

CALGARY TO HOST ‘OLYMPICS OF OIL AND GAS’

Calgary is to host the World Petroleum Congress in 2023, beating out four other global cities in voting that took place in St. Petersburg, Russia. Held once every three years, the event attracts industry and government leaders from around the world, including heads of state and ministers of energy. Mayor Naheed Nenshi, who was in St. Petersburg for the vote, calls it “a shot in the arm for the Canadian energy sector.” A news release from the World Petroleum Congress Canada refers to the event as the “Olympics of oil and gas,” noting it will bring an estimated 5,000 delegates to the city. “People were excited to learn about Canadian energy. They understand that Calgary remains the epicentre—the global epicentre for the world’s oil and gas industry, and here’s the chance to showcase our innovation, our environmental stewardship and our sustainability,” says Nenshi.

CCentral.ca

MINIMUM WAGE UPS AND DOWNS

CHARGED AND READY TO GO

British Columbia is making it easier to explore the province in eco-friendly electric vehicles. The Ministry of Transportation recently announced 12 vehicle-charging sites, nine of which offer direct-current equipment, capable of completely charging a fully depleted battery in 30 minutes or less. More charging stations are in the works, with plans to increase the number of stations across B.C. to more than 1,700. The government estimates 350,000 electric vehicles will be on the province’s roads by 2030. “We’re committed to a cleaner future here in B.C.,” says Environment Minister George Heyman. “As part of that, we’re making zero-emission vehicles more accessible. The more electric vehicles we have on our roads, the less we pollute, and that benefits people and communities everywhere.”

After a series of minimum age increases across the country—British Columbia, Yukon, Quebec, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island—now it’s Manitoba’s turn. The province’s minimum wage hits $11.65 on Oct. 1, 2019, up from $11.35. “We are providing predictable and sustainable increases to Manitoba’s minimum wage, which achieves the right balance benefiting both employees and employers,” says Manitoba’s Growth, Enterprise and Trade Minister Blaine Pedersen. Meanwhile, Jason Kenney’s United Conservative government passed legislation this summer to lower Alberta’s youth minimum wage to $13 per hour, down from $15.

September 22-23, 2019 Toronto The Canadian Coffee and Tea Show coffeeteashow.ca September 24-26, 2019 Toronto National Convenience Industry Summit convenienceindustry.ca October 1-4, 2019 Atlanta, GA NACS Show 2019 nacsshow.com

MOVING ON UP

Cara Keating is now president of PepsiCo Foods Canada. In her 15 years with the consumer packaged goods giant, Keating has held a number of roles and in 2016 was promoted to VP of customer development, the first woman at PepsiCo Foods to have the role. Dwight Konings is the new head of Canadian client services for Advantage Group International. Konings also heads global client development for North America, however his team now will be able to provide Canadian clients with a more robust and relevant global perspective on supplier and retailer engagement. Leslie Mackay is promoted to VP of sales for Conagra Brands Canada. Mackay, who has more than 20 years experience, was most recently director market development responsible for sales strategy, pricing, insights and analytics. Mackay spent nearly 20 years with Kimberly-Clark prior to joining Conagra earlier this year. Tim Johnson joins Greenergy Fuels Canada as executive VP of sales. Johnson has more than 15 years sales experience in the fuel industry, having worked previously at McDougall Energy. He will lead Greenergy’s new Toronto sales team and work with the existing team in New Brunswick.

CCentral.ca

SAVE THE DATES

October 8, 2019 Toronto Star Women in Convenience Event starwomenconvenience.ca October 21, 2019 Halifax ACSA Retail Convenience Awards Gala theacsa.ca October 22, 2019 Halifax Atlantic Convenience Expo theaceshow.ca October 29-30, 2019 Greater Vancouver Area The Convenience U CARWACS Show convenienceU.ca

SEPTEMBER/OCTOBER 2019

QUICK BITES

BY DARREN CLIMANS

Going greenfield

The convenience industry is ground zero for cannabis-infused product innovation

Greenfield opportunities are generally not for lack of foresight, but rather a function of structural, technical, regulatory or other barriers. When circumstances change, competing parties typically scramble for prime positioning. The passing of Bill C-45, The Cannabis Act, in 2018 ushered in a new age of cannabis legalization in Canada. Legal sales of cannabis via retail outlets, as well as limited personal production, opened up for the first time, setting the stage for future cannabis-related innovation. While commercial sale of cannabis-infused edibles (baked goods, drinks etc.) are not yet legal, there is already much work ongoing to define a framework for what many see as the next greenfield opportunity. It’s expected that rules regarding edibles will be defined by the end of 2019 and implemented early 2020. This is no doubt of interest to the convenience industry and c-store operators, who may be uniquely positioned to grab a piece of this greenfield market. It’s also welcome news to consumers. According to a study out of Dalhousie University in Halifax, of the 68% of participants who were in favour of legalizing cannabis in 2017, 93% were also very likely to try at least one edible product, while 46% of all Canadians would try cannabis-infused food products if they were available.

| SEPTEMBER/OCTOBER 2019

Exhibit 1 CANNABIS FOOD-PRINT What kind of cannabis-infused products are Canadians hankering for? 46.1%

Bakery products, such as brownies or muffins

44.5% Would not purchase food products containing cannabis 26.6% Anything ready-to-eat, such as candy 24.2% Oil 18%

Spices

17.2%

Drinks

15.6% Butter 10.9%

Other kinds of products

8.6%

Creams and sauces

8.6% Salads Source: Dalhousie University study Marijuana-infused food and Canadian consumers’ willingness to consider recreational marijuana as a good ingredient.

Exhibit 2 ON THE MENU BAKED GOODS: Traditional carrier of edible cannabis via pot muffin or brownie. BEVERAGES: Cannabis-infused drinks, such as beer and non-alcoholic beverages, are poised and ready. In addition, with legalization, consumers may choose cannabis and related products more often than a drink or two, thus disrupting the alcohol industry. For c-stores that carry beer and wine, this is worth watching. CANDY: Candies are the number one food product containing cannabis in the United States. They take the form of animal or shaped gummies, suckers and chocolates. SAUCES: We could see some consumers substituting their usual pasta sauce or foregoing wine

in favour of cannabis-infused spaghetti sauces or cannabis oil. SUPPLEMENTS/NUTRACEUTICALS: The cannabis plant is full of nutritional value. It contains protein, carbohydrates, insoluble fibre, potassium, magnesium, sulfur, calcium, iron, zinc, vitamins E and C and many other elements considered beneficial for good health. For food manufacturers looking for a new value-added feature, cannabis could be the next omega-3 or probiotic.

Source: Sylvain Charlebois, Dalhousie University

“Greenfield” refers to a virgin market yet to be commercially exploited. From a business perspective, it’s elusive and appealing because of how infrequently it occurs, as well as the potential for windfall results.

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CONSUMERS HUNGRY FOR EDIBLES California: Cannabis legalized in 2016 Consumers purchased US$180million worth of cannabisinfused food and drink in 2017, roughly 10% of the state’s total cannabis sales. Edibles sales rose double-digits in 2018. Colorado: Cannabis legalized in 2014 Total combined recreational and medical cannabis sales projected to exceed US$1.5billion this year. Sales of edibles jumped about 60% from 2017 to 2018 and continue climb. Source: Sylvain Charlebois, Dalhousie University

Consumers have a taste for cannabis

Wana Brands, a maker of cannabis-infused edibles based in Boulder, Colorado, sells small vegan candy squares or circles dusted in sugar. From the start of legalization, Wana sales have grown from around $100,000 the first year to more than $16 million in 2018.

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Earlier this year Deloitte surveyed 2,000 adult Canadians regarding cannabis and edibles consumption, concluding that edibles and cannabis-infused beverages represent a multi-billion dollar opportunity. The Arcview, a cannabis investment and market research company, projects the cannabis edibles market will be worth more than $4 billion in Canada and the United States by 2022, with Canada representing nearly 40% of the opportunity. As a means of projecting the potential of cannabis for the Canadian food industry, Sylvain Charlebois, professor of food distribution and policy at Dalhousie University, examined data from U.S. states that have already implemented legalization. The data pointed to rapid market penetration in Canada, with edibles sales expected to account for more than 10% of total cannabis sales within two years of opening the market.

CBD: The first wave With the absence of an appropriate regulatory framework around edibles, the first wave of change will be food and beverage products that reference cannabis, but include non-hallucinogenic cannabidiol (CBD) derivatives and/or hemp-based products. Hemp and CBD products became legal in the U.S. with the signing of the Farm Bill at the end of 2018. In its annual Chef Survey, The National

Couche-Tard partnered with Canopy Growth to open this Tweed store in London, Ont.

Restaurant Association and the American Culinary Federation found that 75% of the 650 chefs surveyed said CBD and cannabis-infused food would be a hot trend in 2019. In the U.S., legalization has sparked innovation and, ultimately, consumer demand. Though, it is still early in the adoption process for CBD-infused foods and beverages, there are many examples of both emerging and global drink companies aligning to prepare for the coming market gap (Exhibit 3). For instance, L.A.-based Kickback Cold Brew offers coffee and tea-based CBD-infused beverages made with organic ingredients, 100% single origin and shade grown coffee beans, and high-grade hemp. In the QSR segment, Carl’s Jr., a burger chain with 1,500 locations, including more than 20 in British Columbia, Alberta and Saskatchewan, recently tested a CBD Burger in Colorado. The limited edition $4.20 Rocky Mountain High: CheeseBurger Delight featured a Santa Fe sauce infused with CBD, a non-psychoactive hemp derivative. It was a nod to consumers’ pent up desire for cannabis innovation and may yet find a place on the Carl’s Jr. permanent menu. “(It) ties back to our core strategy of being the first to bring bold and unexpected flavours, that are at the forefront of hot restaurant trends, to a quick service menu,” says Patty Trevino, Carl’s Jr. senior vice-president of brand marketing. SEPTEMBER/OCTOBER 2019

QUICK BITES

BY DARREN CLIMANS

Exhibit 3

BOTTOMS UP

7 BEVERAGE COMPANIES VYING FOR A SHARE OF THE CBD MARKET

Cannabis express Last year, convenience operator Kohanoff Affiliated partnered with Swissx Oil & Confectionary to distribute its Swissx CBD products in more than 500 convenience stores and gas stations across Southern California. Earlier this year, Canada’s Alimentation Couche-Tard Inc. entered into a multi-year agreement with Canopy Growth Corp. to open a Tweed-branded cannabis store in London, Ont. “Alimentation Couche-Tard is excited about taking a leadership role in the development of cannabis retailing excellence,” says Brian Hannasch, president and CEO of Couche-Tard, adding CoucheTard is looking at this venture as a vital entry opportunity to a new market. Then, in July, the convenience giant announced a partnership with cannabis retailer Fire & Flower. “Couche-Tard is excited to make this strategic investment in one of the fastest growing cannabis ‘pure-play’ retailers,” said Hannasch. “This investment in Fire & Flower, with a path to a controlling stake, will enable us to leverage their leadership, network and advanced digital platform to accelerate our journey in this new and flourishing sector.” With the legalization of cannabis, we are in the midst of a revolutionary paradigm shift. Having lived in The Netherlands during the 1990s, I was first exposed to a tolerant attitude towards cannabis: Legalization blows open the door to normalization, commercialization and potentially explosive growth. It promises to be one of the largest “land rushes” in modern memory and the time to get your claim flag in the ground is now. ◗ Darren Climans is a foodservice insights professional with close to 20 years’ experience partnering with broadline distributors, CPG suppliers, and foodservice operators. His practice is to understand issue-based decisions by taking a data-driven approach to strategic decision making.

| SEPTEMBER/OCTOBER 2019

YOUNGEVITY INTERNATIONAL INC.: Partnered with CLR Roasters and HempFX brands for a CBD-infused coffee and a CBD water is in the works. THE ALKALINE WATER COMPANY INC.: Distributed through more than 150,000 stores, including nine of America’s top-10 retailers, the company is waiting on FDA approval to launch its CBD water. NEW AGE BEVERAGES CORPORATION: Introduced CBD-infused beverages, including a range of organic cold coffees and teas, under its Marley brand. HEINEKEN: In partnership with its craft brewer, Lagunitas, the company sells Hi-Fi Hops, in two versions—one with 10 mg of THC and one with 5 mg of THC and 5 mg of CBD. CONSTELLATION BRANDS INC.: Invested $4 billion in Canopy Growth Corporation, one of Canada’s largest cannabis producers, and the two are working to produce cannabis drinks. MOLSON COORS BREWING: Announced a joint venture with a pot grower HEXO to release cannabis-infused non-alcoholic beverages by fall 2019. TILRAY: One of Canada’s leading cannabis producers is angling to be a leader of the CBD-infused beverage market, partnering with Anheuser-Busch InBev SA to research cannabis-infused non-alcoholic drinks. Source: CannabisNewsWire.com

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BY LARRY MASOTTI

Cannabis at work An operator’s guide to developing

policies for employees and customers With the legalization of recreational cannabis in Canada in October 2018, many businesses, including convenience retailers, are now faced with the challenge of managing the effects of the legislation on their workplace, while also protecting their rights as employers. It’s important for convenience retailers to know about cannabis, its potential effects, ways to detect its use, and what to do if you suspect your employees are under its influence. Canada has one of the highest rates of cannabis use in the world. More than 40% of Canadians have used cannabis in their lifetime, while about 10% have used it in the last year. With legalization, those numbers are growing.

Cannabis 101 There are two strains of cannabis. Sativa cannabis affects the functions of the brain, creating a sense of uplifting and euphoria, creativity and increased energy. It is best for daytime use. Indica cannabis affects the body, resulting in relaxation, appetite and stimulation, and is helpful in aiding sleep and pain relief. Indica is best for nighttime use. Cannabis contains hundreds of chemical substances including delta-9-tetrahydrocannabinol (THC) and Cannabidiol (CBD). Medical cannabis has been legal in Canada since 1999, and although it may have lower amounts of THC, which is responsible for the psychoactive response, it may have an impact on how the brain and body function. Cannabis impairment is usually subtler and longer-lasting than alcohol and may

be harder to recognize. Effects include diminished mental alertness, physical coordination, reaction time, sustained vigilance, manual dexterity and judgment: These can last as long as 24 hours. Those authorized to use cannabis for medical purposes must have a registration document from either a federally licensed seller or from Health Canada for personal or designated production or possession only. In workplace situations arising from medical cannabis, employers have a legal duty to enquire and investigate the possibility of accommodating the disability. It’s important to note it is the disability that must be accommodated, not the employee.

What’s your workplace policy? Develop a workplace drug and alcohol policy that clearly defines impairment, requires employees to be fit for work, outlines disciplinary procedures up to and including termination, support for employees struggling with addiction, the use of cannabis in and around the workplace (as well as in company vehicles), and the use of medical cannabis on an individual basis. As well, retailers should develop procedures for identifying, reporting and removing employees from the workplace; identify resources and supports for employees; and accommodation measures for those who disclose a substance problem. In addition, they should train employees on workplace risks and policies, while training supervisors to identify, respond to and record evidence of workplace-related impairment. Also, reinforce workplace harassment policies and implement wellness programs to support physical and mental well-being.

| SEPTEMBER/OCTOBER 2019

CANNABIS IS HERE. ITS USE IS REAL SO IT MUST BE TAKEN SERIOUSLY.

C-STORES AND CANNABIS CONSUMPTION Different provinces and territories are handling the sale of cannabis differently. While some make it available only through government-operated stores or online, others are offering cannabis through private retailers. For instance, in Ontario recreational cannabis is available online through Ontario Cannabis stores—and at licensed private retail stores. Unlicensed convenience stores can sell cannabis consumption paraphernalia, such as hand and water pipes, but these items should be positioned so minors can not see them.

Train your staff Be clear on what is legal and not legal with regard to cannabis and train your staff to know the law and be able to defuse difficult situations should they arise with customers. Cannabis is here. Its use is real so it must be taken seriously. ◗ Larry Masotti, director of strategic partnerships with Workplace Safety and Prevention Services (WSPS), spoke at The Convenience U CARWACS Show. CCentral.ca

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TOP OPS

BY RUSSELL LARGE

A fine balance Merchandising for innovations and key categories comes down to strategic planning On just about every corner these days are “super-

sized” commercial gas and convenience locations, many with national foodservice partners, almost all with directives on how to take on as many customers and market share as possible. They’re gobbling up the mom-andpop operations like take-home snacks and moving into residential areas once left to the drug stores and Jug Milk. It seems as though their expansion into everything is inevitable, but is it? A handful of independent retailers would strongly disagree: They employ many of the same merchandising tactics as the larger players, but with a little more freedom and a lot of imagination. The devil is in the details and today it is more important than ever to understand where you’re going, how you’re getting there and what you’re going to do when you arrive. It sounds fairly intuitive and straightforward, but after almost two decades of doing this, I’m telling you it’s not. Like everything else that works well and is successful, it requires good planning, execution and the will to see it done properly. Bringing in people who specialize in areas where you need help in is always key. Planning for the next fidget spinner craze, Pokémon obsession or Super Sour Sucker-Pop is the future of your business. Innovation drives many key categories and the suppliers that provide those categories are always looking for the latest and greatest thing. You should be too.

CREATING THE RIGHT SPACE TO FEATURE THE NEXT TREND-SETTING PRODUCT STARTS WITH STORE LAYOUT.

Creating the right space to feature the next trend-setting product starts with store layout and that means getting the right people involved early in the design and retail concept. This will go a long way in avoiding costly backtracking on key areas, service points and equipment. Innovation spaces do very well at the front of the location, either directly tied to the cash desk or its back counter. They can also do very well on their own, featured in a space allowing customers to easily explore the fixtures and at the right level for the target customer. I remember a 4 ft. x 4 ft. Crayola travel display that we found in the middle of nowhere while camping one year. My sixyear-old son loved it, and it cost me dearly. Apparently they had lots of families with young children stopping in that summer— smart retailer. Designing for the future also means protecting the core categories that are generally responsible for upwards of 90% of all daily sales and activity. Milk may not be glamorous, but it’s essential. Selling tobacco can be expensive and a security

| SEPTEMBER/OCTOBER 2019

risk, however it is also one of only two or three products that will bring customers to you, guaranteed. Beverages, salty snacks, confectionery, seasonal, dairy and kids candy are just a few key categories that have helped to make the convenience industry what it is today. All of these need to be properly represented in any successful gas or convenience business and maintained to guarantee future success. I always like to remind retailers that the convenience business was built on great service and products, as well as the convenience of easy access. A good operator sells the customer what they want, NOT what they want to sell them; A great operator does that, tracks the customer’s purchases and is prepared for when they come in next. It can be that easy, with the right plan. ◗ Russell Large is acting vice-president of retail services for Hugh Large & Associates Inc. and works directly with Continental Store Fixture Group(www.continentalsfg.com), helping customers get the best value for their merchandising dollars.

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Turn your c-store into a hot (beverage) destination BY MICHELE SPONAGLE

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Pouring effort into creating a positive coffee experience for customers has some serious perks, as both convenience store owners and their java partners can attest. Based on the sheer size of the potential market, opportunities to capitalize on it are abundant. Hands down, coffee is the most consumed beverage among Canadian adults, even more than tap water. Itâ&#x20AC;&#x2122;s a $6.2 billion industry, including $4.8 million in foodservice sales, according to the Coffee Association of Canada. SEPTEMBER/OCTOBER 2019

| 17

PHOTOS: KAREN WHYLIE / COYOTE PHOTOS

y k c u L The Penny

Debbie Rix (above), owner of The Lucky Penny, says

“COFFEE SALES HAVE BEEN IMPORTANT DRIVERS FOR THE BUSINESS.”

While Tim Hortons dominates the domestic coffee biz, there’s room for others to muscle in and grab some market share for themselves. And here’s another important number to ponder: 67% of Canadians visit a convenience store at least once a month, according to a Technomic study, which represents an opportunity to create a coffee following with a strong product. Debbie Rix, owner of The Lucky Penny, has attracted a steady drip of coffee drinkers to her location near Trinity Bellwoods Park in Toronto. She has focused on offering locally sourced products, like coffee from the city’s own Propeller Coffee Co., and fresh milk and cream from Kawartha Dairy. Her convenience/general store has also adopted green practices and cut down on waste by foregoing plastic stir sticks in favour of metal spoons and introducing a loaner mug program, which allows customers to fill up the mug and return it when they visit next.

“It has been very successful,” notes Rix. “Most definitely, coffee sales have been important drivers for the business. About half of our customers come for grab ‘n go items and half of that is coffee. The remainder come to pick up groceries and other items, from a mix of retro candy to romaine lettuce and Frisbees.” Since opening five years ago, Lucky Penny strives to be responsive to the wants of its clientele. That definitely applies to coffee preferences. “We’re not coffee snobs,” says Rix. “Our staff are trained to make a customer’s coffee just how they like it. We’ll try to make it happen.” The store’s aim-to-please philosophy helps build loyalty, as does a points program that rewards customers for using reusable coffee mugs and for every dollar they spend. A downloadable mobile app helps track customer spending and point tallies. Fifty points gets you a free coffee and 100 earns $5 off an order.

| SEPTEMBER/OCTOBER 2019

To encourage food sales, fresh baked goods are delivered daily, while yogurt parfaits are made on-site. As customers wait for their coffee order, they stand next to an enticing display of pastries. And before transactions are finished, they are offered a special deal of half a loaf to go along with their coffee. When prepping their coffee, clients can add soy/oat/almond/non-fat/full fat milk and sweeten with raw sugar, Stevia, simple or agave syrup, honey, plus a dash of cinnamon. It’s further evidence of the “have it your way” philosophy and reflective of consumers’ increased desire for healthier eating options. Coffee partners can play an important role in getting strong sales brewing, says Dave McQuillin, senior director of food services, Club Coffee L.P., based in Toronto. “We can provide support with branding of coffee in the stores with clear, modern visuals and clean, well maintained equipment. As well, we can provide graphCCentral.ca

Hip Sips: Coffee sales by the numbers

THE COFFEE MARKET HAS SHIFTED AND CONSUMERS ARE KNOWLEDGEABLE AND ABLE TO RECOGNIZE GOOD COFFEE VERSUS BAD. A POOR EXPERIENCE WILL ABSOLUTELY TURN THEM OFF.”

ic design for in-store merchandising and loyalty programs. It can elevate your store and make yours the destination over other retailers.” But even the best branding won’t work without good coffee. While consumers want convenience and quality, the coffee itself cannot disappoint. “The coffee market has shifted and consumers are knowledgeable and able to recognize good coffee versus bad,” explains McQuillin. “A poor experience will absolutely turn them off.” That underscores the need for keeping coffee fresh and equipment pristine, up-to-date and in good working order. To sweeten the deal, promotions help drive sales. “The most successful ones have been ‘any size for a $1’ and bundle discounts, like coffee and a muffin or a breakfast sandwich. They do very well, especially in the breakfast space,” he says. Convenience store owners may also want to borrow a tactic out of the fast food playbook. In March 2019, Burger King introduced a coffee subscription program stateside for its BK Café. Through the company’s app, users can enjoy a small daily 12 oz. coffee for US $5 a month, which can whittle down the price paid to 17 cents per cup. For hardcore caffeine enthusiasts, it’s a potentially attractive perk, sure to keep the java flowing. ◗

3.2

is the average cups per day consumed by coffee drinkers.

42%

of consumers say they purchased hot brewed coffee/lattes/etc. at a convenience store in the last three months, making coffee the second highest ranking item in terms of sales, second only to fountain beverages, according to one U.S. study.

38%

of convenience store customers who ordered coffee said they were interested in single origin and flavoured coffee roasts, according to research firm Mintel.

16%

of past-day coffee drinkers used a loyalty card, while 7% used a mobile app, when ordering coffee in the past week, according to the Coffee Association of Canada.

56%

of consumers who have visited a convenience store in the past three months feel that it makes coffee drinks as good as coffeehouses, according to Mintel data. It also discovered many consumers associate convenience stores with coffee. ... If a coffee program is done well, it is likely to boost overall foodservice sales.

7 WAYS TO PERK UP COFFEE SALES 1/

CHANNEL YOUR INNER BARISTA. Sophisticated coffee fans want to be able to customize their drinks with flavoured creamers and syrups.

2/ STOCK HEALTHIER OPTIONS. Mix up your selection of grab ‘n go

food-friendly items by offering things like vegan donuts, whole wheat or flax muffins, and fresh fruit.

3/ UPGRADE YOUR EQUIPMENT. New self-serve Schaerer machines grind the beans and make pressure-brewed cups similar to French press versions.

4/ OFFER HIGH-OCTANE OPTIONS. While sales of some coffee types have been flat, espresso sales have experienced a big leap recently.

5/ GO GREEN. Consumers like to feel good about the coffee they purchase. Con-

sider organic, fair-trade sourced beans, unbleached paper coffee pods, wood or bamboo stir sticks instead of plastic ones, and recyclable cups and lids.

6/ JUST CHILL. Expand your coffee selection to include cold brewed coffee

beverages, which experienced a whopping 80% jump in sales, according to one Bloomberg report. Frozen cappuccinos or smoothies spark coffee consumption during warm weather.

CELEBRATE! Build a promotion around International Coffee Day on October 1. That could include special pricing, new products, contests, social media blasts, or pairings with a food item.

| SEPTEMBER/OCTOBER 2019

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SPOTLIGHT

A TASTE OF HOME Dépanneur Mokolo finds its niche with Quebec City’s African community TEXT BY MARK CARDWELL PHOTOGRAPHY BY LOUISE LEBLANC

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Madeleine Zari-Doka

Quebec City convenience store owner Madeleine Zari-Doka comes by retail selling honestly. But the grit, courage and determination that have enabled her to build a three-store chain in Quebec’s picture-perfect provincial capital are all hers. “I’ve been through a lot,” says Zari-Doka, speaking from her original Dépanneur Mokolo location, a basement convenience store that also features imported foods, cosmetics and sundry items for the city’s small but growing population of African and Latino residents and students. “But I’ve worked hard and I’m very proud of what I’ve accomplished.” Born and raised in a large family in Baboua, a small town on the Central African Republic’s border with Cameroon, Zari-Doka grew up helping run the clothing stores and inns owned and operated by her entrepreneurial father. “He taught us how to sell,” recalls Zari-Doka, a natural entrepreneur who, at age 12, opened a hair-braiding business. “Even at school he got us to sell small items to our classmates.” Later, while travelling to several countries under the auspices of the Lutheran World

Federation, Zari-Doka ran afoul of one of the many rebel groups in the unwieldy central African nation, a former French colony that is one of the poorest countries on Earth. After being imprisoned for a month, she fled in 2003, leaving three young children behind. She landed in Winnipeg, but continued to Quebec, where she worked at several jobs and completed a business course before securing a $15,000 loan in 2007 from the Canadian Youth Business Foundation. She planned to operate a hair salon, but that didn’t work out and she turned her attention to convenience. “I decided to also get a permit to also sell the foods that Africans like but can’t get in supermarkets here,” says Zari-Doka, who adopted the moniker Mokolo because it means “big” in several indigenous African dialects and is the name of both a major city and a famous market in central Africa.

SEPTEMBER/OCTOBER 2019

| 23

Madeleine’s son, William.

Dépanneur Mokolo opened in 2008 in the basement of a small building on a busy commercial street in Quebec City’s west end, close to the Laval University campus and the many African students who live and study there. An Arabic grocery store later opened on the main floor above. In addition to snacks and staples, Mokolo features wigs, hair extensions and cosmetics, as well as African-centric fresh and frozen foods ranging from dates, oils, sauces and potato-based cassava flour to plantain, fish, lamb and hard chicken (a pan-African culinary mainstay and the store’s top-selling food item). According to Zari-Doka, who works alone in the store that is open daily from 10 a.m. (except Sundays when it opens at 1 p.m. so that she can attend morning church services), the business grew thanks to word of mouth and her ongoing sponsorship of community events. “It took a lot of time and patience,” says Zari-Doka, whose children joined her in Quebec City shortly after the store opened. “I worked hard and concentrated on building

people’s confidence. I’m here every day, rain, snow or shine.” A welcome discovery, she adds, is the popularity of the store’s food items among the local Latino population. “They eat the same foods Africans do. A large percentage of my customers now are non-Africans.” In 2014, Zari-Doka bought the inventory of a shuttered c-store and opened a second Mokolo, just a stone’s throw from the Laval University campus. This ground-floor location features many of the same products as the original store, plus many regular North American c-store items, and is operated by her 22-year-old son William. Two years ago, Zari-Doka bought another store and converted it to a third Mokolo location, which is run by her 25-year-old daughter Lydia-Annette, who has two kids of her own. “Things are going very well,” said Zari-Doka, who now returns to the Central African Republic for several weeks during the summer months to visit her family (she travels incognito out of fear of being kidnapped by cash-hungry rebels). “I really enjoy being of service to people.” ◗

| SEPTEMBER/OCTOBER 2019

3 tips ➦ 1 | Don’t do it for the money. For Zari-Doka,

being a merchant is first and foremost about helping people: “Service comes first, profits second.”

2 | Be perseverant. “Look to the

future and don’t get discouraged.”

3 | Count your good fortune. “There is no sense fretting about things you don’t have or that you can’t control. Do your best with what you have, be patient and work for the good of you and your family.”

Snapshot Name: Dépanneur Mokolo Three stores in the west-end Quebec City neighbourhood of Sainte-Foy: 3062 chemin des Quatre-Bourgeois, 2132 chemin Sainte-Foy, 193 rue Chabot, Quebec Hours: 10 a.m. to 8 p.m. Monday-Wednesday and Saturday, 10 a.m. to 9 p.m. Thursday-Friday, 1 p.m. to 8 p.m. Sunday Number of employees: Three (one at each store)

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SPOTLIGHT

IN THE

Driver’s Seat Alcona Esso Gas and Variety meets the needs of commuters and the community BY DONALEE MOULTON

Commuters making the daily trek to Toronto from communities as far away as Barrie, 113 km north of Canada’s largest city, can count on two things when they pull in to Alcona Esso Gas and Variety: a steaming cup of coffee and a beaming smile. Alcona Esso is located about 103 km north of Toronto in Innisfil, a commuter town, and during peak drive times the store is a hub of activity. Mornings are particularly hectic, says owner Scott Knack. “Customers are getting their coffee and their smokes en route to starting their day. Convenience is important.”

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SPOTLIGHT To enhance the ease with which customers can make a purchase, Alcona Esso has a drive-through. In fact, the store was the first in the community of roughly 37,000 people to offer this type of service. That was in 1995. “Customers can get anything they want at the drive-through,” says Knack. “Some people even purchase a car wash at the window.” Meeting the demands of harried and tech-savvy commuters requires being service focused and innovative. Knack, for example, launched a car wash app earlier this year to make purchases easier. He also offers users a monthly pass for this service. The partnership with Esso, on the other hand, signals the store is affiliated with a well-known and well-regarded national company. “It’s a big brand. There is name recognition,” says Knack. Then there is quality. Alcona offers customers their own brand of coffee, Rod’s Coffee, named after Knack’s father, who started the business 24 years ago. “Coffee is an important draw. It has to be fresh,” stresses Knack. It also has to stand apart from other vendors, so the coffee cups are exclusive to Alcona with their own design and logo. Many customers also buy a homemade sandwich to go with their coffee. Each day, the staff prepare egg salad, tuna, turkey and ham sandwiches fresh for the buying. “We’re always trying to do something different, something that Tim Hortons doesn’t do,” says Knack. Although, like the giant fast food chain, Alcona does offer customers the option to buy fresh doughnuts, at least for part of the year. Regardless of what customers purchase, they’re met with a friendly smile and a heartfelt greeting. “We have a warm and happy atmosphere here,” says Knack. “We want people to feel welcome. Our employees are chatty. They ask about our customers’ day. That’s how I was raised.”

Knack also uses social media to engage with customers. “This helps keep people aware of us and what we have to offer.” On Sunday nights, for example, the employees will often post a reminder that garbage bag tags are available at Alcona: Monday is garbage day in the town. That’s marketing savvy—it’s also thoughtful. Knack ensures similar consideration is given to staff. He often takes his 19 part-time and full-time employees out for a night of bowling or paintball. As well, he tries to accommodate requests for shifts and time off. “I try to schedule according to people’s needs,” Knack says. “We have staff who stay for a long time.” ◗

Snapshot Opened: 1995 Location: Innisfil, Ont. Size: 800 sq. ft. Services: Castrol Premium Lube Express, convenience store, drivethrough coffee and doughnut shop, car wash, and Esso gas station

Alcona Esso Gas and Variety’s top tips for a successful store:

| SEPTEMBER/OCTOBER 2019

1 | Always adapt. It’s essential

to change with the times, says owner Scott Knack. He points to tobacco as a prime example of a category that is continuously evolving. His convenience store now carries vape products.

2 | Engage employees. Staff

are the heart of a store, and if they are dissatisfied that is inevitably communicated to customers. Alcona Esso has a Facebook page exclusively

for the use of employees. The work schedule is posted here and the forum is used, primarily by workers, to share requests from customers, highlight new products and identify issues.

Connect with the community. Aside from

marketing, the team at Alcona Esso support their community. This ranges from selling bingo cards used specifically at the MacLaren Art Centre in Barrie, Ont., to promoting the annual Innisfil Ribfest.

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What consumer trends are you seeing the chip category? In the highly competitive potato chip category, there is demand for high-quality, flavourful products that satisfy taste buds, as well as demand for Halal certified products. Consumers are also looking for alternatives and value for money. There are minimal alternatives in the canister chip segment compared to the “bagged” potato chip category. Kracks will be a strong contender in the canister segment and will fulfill consumers’ desire for an alternative with the quality, taste and price Kracks has to offer. We think of it like Coke versus Pepsi. Consumers want choice, and when there is healthy competition between brands, it spurs investment and invigorates the entire category. What are your marketing plans? We are investing heavily in marketing Kracks, including in-store promotions, in-store demos, social media, radio campaigns, and event sponsorship, such as the recent Desi Fest in Toronto. These efforts are designed to raise brand awareness and create excitement at retail. What’s next for Kracks? Our goal is to be the market leader in the potato chips canister segment. We can achieve this by providing Canadians with a high-quality and tasty product at a competitive price. We’re committed to ongoing investment in the brand to ensure retailers see a high sell through with healthy margins. This will lead to overall chip and snack category growth in both units and dollars.

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FEATURE

THE FUTURE IS FRICTIONLESS Innovative technologies clear the path to purchase

BY DONALEE MOULTON ILLUSTRATION BY SÃ&#x2030;BASTIEN THIBAULT

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SEPTEMBER/OCTOBER 2019

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Time has always been of the essence, but c-store owners and employees may have noticed a shift in the degree to which time is valued by their customers. Consumers today want to make a purchase, and they want to make it quickly. They want to get in and out of a store fast—with everything they intended to buy. Patience, it seems, is in short supply. According to a recent study from the Retail Council of Canada (RCC), 41% of consumers said they had a problem making an in-store purchase. The study, which surveyed more than 5,000 Canadians, found that customers are expecting a more convenient, seamless and integrated experience no matter where they shop. Retailers who do not provide a seamless experience may find their customers going elsewhere. “We are seeing a consumer who will not hesitate to switch retailers when problems occur,” says Diane Brisebois, president and CEO of the Retail Council of Canada in Toronto. The demand for a better shopping experience is being driven by millennials RCC’s survey found. This group reported more problems with both online and in-store purchases than older consumers (59% vs. 32%). Younger consumers, the report concluded, expect flawless shopping experiences and are not willing to put up with, well, hiccups.

Consumers expect a seamless experience

➡ The demand for a better shopping experience is being driven by millennials RCC’s survey found.

“Younger Canadians are technology experts. They want shopping to be more personal, faster and better, and it should work across all devices and surfaces by merging online and offline to create one intuitive experience,” says Eric Morris, Google’s director of retail in Toronto. “They are moving fast, and retailers need to move faster. If a retailer can’t connect their customer to the right product in as few steps as possible, they will go elsewhere.” The seamless experience is called frictionless shopping, and it is becoming a cornerstone for retailers of all sizes and products. “We found that retailers that were not able to reduce points of friction from their stores and provide convenience, service and value lost customers,” says Paula Courtney, product founder at WisePlum, a Toronto-based firm that helps retailers understand their customers’ needs and expectations. A white paper, also produced by the Retail

| SEPTEMBER/OCTOBER 2019

Council of Canada, concluded that speed, convenience, selection, service, access and value for price are all key elements in the successful path to purchase for a customer. “New technologies have allowed consumers to access such services as digital payment options, instant inventory checks and price comparisons, 3-D product viewing, virtual consultants and all these innovations are redefining the customer experience,” the report states.

C-stores rise to the challenge If consumers are throwing down the gauntlet, c-stores are rising to meet the challenge. Owners are looking to integrate digital services and human contact. Scott Knack, whom you will read about in this issue (see p. 27), recently launched an app for his car wash. His customers—many of whom are commuters—can even pay for their car wash at the drive-through window in his c-store, Alcona Esso. “Convenience is important,” Knack says simply. Customers are redefining what constitutes convenience, and the retail sector is rushing to exceed expectations. Among the latest innovations coming soon to a c-store near you are digital shelves. On the way out are paper price tags and labels. In their place will be displays that allow for immediate price changes, flashing advertisements and promotions. Also well in hand is the technology to allow individuals to use their smartphones to scan items while they are shopping, with scanning speeds typically only seen in commercial-grade handheld scanners. Customers can view the current total of their shopping basket and, at any time, can simply pay with their mobile device and avoid waiting in line at a checkout. “Mobile self-scanning apps enable brickand-mortar retailers to offer customers a blended physical-digital shopping experience that combines the convenience of e-commerce with the immediacy of the store,” says Samuel Mueller, co-founder and CEO of Scandit, an international barcode company.

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When it comes to digital innovation, Amazon has taken top spot this year with its chain of 13 Amazon Go stores now up and running in four U.S. cities (more to come). Customers pick up the products they want and exit the store. There are no checkouts and no payment taken.

✹ On the way out are paper price tags and labels. In their place will be displays that allow for immediate price changes, flashing advertisements and promotions.

That convenience is customer-specific. Unveiled at this year’s National Retail Federation’s Big Show in New York, for example, is an augmented reality app that will enable customers with allergies to hover their device over a shelf and instantly be told which products are safe for them. Earlier this year, AWM Smart Shelf, a retail technology firm in Aliso Viejo, Calif., introduced its Frictionless Shopping Application, which uses cameras and computer vision to automate the retail experience—including checkout and payment. The cameras located around the store interpret and understand who the customer is, what products they pick up from the shelf and ultimately what is included in their final purchase decision, then charges their digital wallet as they exit the store. Of course, when it comes to digital innovation, Amazon has taken top spot this year with its chain of 13 Amazon Go stores now up and running in four U.S. cities (more to come). Customers pick up the products they want and exit the store. There are no checkouts and no payment taken. Purchases are charged automatically to the customer’s Amazon account.

Rapid change is imminent Many of these advances may seem most appropriate for larger convenience store chains and grocery stores, but such technology is becoming more mainstream, more affordable, and more

| SEPTEMBER/OCTOBER 2019

in-demand by shoppers in c-stores of all sizes. Indeed, at the 2019 Conexxus Annual Conference held in Nashville, TN, this spring, the more than 200 c-store members in attendance were told that creating a frictionless shopping experience using the latest in technology is already a reality. Gray Taylor, executive director of Conexxus, a tech organization for the convenience store sector headquartered in Alexandria, VA, pointed out that loyalty programs and smartphone purchases are now well entrenched in the sector. Within the next five years, he predicted, everything from enhanced cloud-based security to automated checkout to AI will be part of the c-store experience for shoppers. Within seven years, possibly within the next three, Taylor believes, c-stores will be relying on advanced analytics to better understand customers, the Internet of Things for such issues as food safety, and home delivery using autonomous delivery vehicles. Yet the more things change, the more they stay the same. What continues to matter most to customers is having a relationship with a retailer they trust. That’s why for Scott Knack, and other c-store owners across Canada, the best shopping experience for customers is one that makes them feel good—not just efficient and expedient. It’s ultimately about the human experience. “Look customers in the eye,” says Knack. “Lift your head. Have a conversation.” ◗

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CATEGORY CHECK

BY DONALEE MOULTON

Vape expectations Education and training are key to driving sales Vaping = variety Selection both defines and confounds the vaping market in Canada today. “With 5-million adult smokers in Canada, the vaping category represents a growing opportunity for independent and convenience retailers. But this opportunity can become complicated by the large variety of vaping products and devices available today,” says Gérald Alvoët, country marketing manager with Juul Labs in Toronto. Education and training are essential, he stresses. “With ever-rising cigarette prices and increasing stigma and peer pressure not to smoke, many smokers want knowledgeable advice on switching, and they want it from the retailers who are in the know.” Becoming a retailer in the know requires anticipating customers’ questions and having accurate answers at the ready. It also means keeping abreast of the latest trends in this growing sector.

More products = more opportunity Earlier this year, JTI Canada Tech Inc. introduced Logic Compact, which Charis Chrysochoidis, the company’s reduced-risk products lead for Canada, calls a “game changer.” Vapes have been for the most part clunky, cumbersome or unsatisfying, he says. “Logic Compact changes that, giving adult smokers and vapers the experience they are looking for in a simple, sleek and compact device that just clicks.” Most of the compact players, which are sold in convenience, use what is known as a closed tank vape. This involves replaceable pre-filled e-liquid pods that come in a variety of flavours, such as tobacco, fruits and mint. The pods click seamlessly into the device, as does the charging cable. Hitting store shelves this fall is a portable charging case from Juul that enables users to charge their device up to

three times using a charging case that can go anywhere. “The charging case is portable, high capacity, secure and compatible,” notes Alvoët. “To help smokers switch and stay switched, we want to make charging on-the-go as seamless as possible.” In addition, Juul opened its first brick-and-mortar store in Toronto this summer and is using Canada as a testing ground for a new connected device that will enable people to monitor usage via an app.

Controversy = consideration A study led by Professor David Hammond of the University of Waterloo and published in the British Medical Journal this year found that among those 16 to 19 years old, vaping increased by 74% from 2017 to 2018, from 8.4% to 14.6%. “E-cigarettes are supposed to be for adult smokers who have been unable to quit. But the results of this new study regarding youth trends are of tremendous concern,” says Rob Cunningham, senior policy analyst with the Canadian Cancer Society in Ottawa. Manufacturers are advocating for balance: restrict youth access to vape

| SEPTEMBER/OCTOBER 2019

products, while allowing adults to switch from tobacco products. “We have a tremendous opportunity with potentially reduced-risk products,” says Eric Gagnon, head of head of corporate and regulatory affairs at Imperial Tobacco Canada in Montreal, “and as we have seen in progressive countries like the United Kingdom that have endorsed vaping, adult smokers are more likely to switch once they are aware of the alternatives available to them.” ◗

New regulations = new opportunity New plain packaging regulations for tobacco—what the Canadian Cancer Society calls “the best and most comprehensive in the world”—are set to come into effect for manufacturers on November 9 of this year and February 7, 2020, for retailers. It’s part of the federal government’s strategy to reduce tobacco use among Canadians to less than 5% by 2035. Vaping can help in reaching that goal, says Alvoët. “In seeking to reduce the harm done to Canadians by cigarettes, Health Canada sees vaping devices having a role to play.” He points out that the average smoker will attempt to quit more than 30 times. Vaping may be a key to a quitter’s ultimate success, but it is not without controversy.

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BACKTALK

BY MICHELLE WARREN

Thirsty for change “

We’re losing five convenience stores a week, but we’re about to experience a whole new world of opportunity with the provincial government’s approval of beer and wine.”

PHOTO: JAIME HOGGES

As CEO of the Ontario Convenience Stores Association, which represents more than 7,500 stores, Dave Bryans is a driving force in the quest to sell beer and wine in the province’s corner stores. The industry veteran talks about what he sees as the biggest change and opportunity shaping the convenience sector in Ontario.

| SEPTEMBER/OCTOBER 2019

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CSN: What is this going to look like? DB: There are different ways of alcohol being sold across the country, but this will be more like the Quebec model where eventually every convenience store in Ontario will be able to sell beer, local craft beers and, of course, wines. Think of the millions of people that are standing in line in the Beer Store or LCBO; they will soon be standing in convenience stores and have the opportunity to buy all types of impulse items, from chips to new products to lottery and more—it will open up a whole new world of traffic. In Quebec, beer represents about 15% of total sales, but also influences about 30% of impulse sales.

How can the industry adapt to take advantage of these opportunities? DB: We need everybody to stay focused and work together to ensure that beer and wine ends up in every convenience store. We’ve been waiting since 1987 for this and finally it looks like it’s going to go through. But it’s still going to take the support of the retailers, the convenience sector and the manufacturers.

What needs to happen to make this work? DB: A few things. One is distribution: How do we get smaller loads of beer, wine and cider to convenience stores? We’re trying to work with full-service wholesalers and convince the government that this might be the route to go. Add it to regular delivery loads—instead of letting the Beer Stores or the LCBO make those deliveries exclusively at a higher cost—because we have thousands of communities in Ontario that have to be covered. If we want strong and vibrant wholesalers, we need to push to have them carry the beer as well. They do that in England, Ireland and Scotland.

There are a lot of unanswered questions about the rollout: Which stores get it first? DB: I believe the Conservative government is leaning towards key CCentral.ca

independents because they’re a smallbusiness minded government.

How does a retailer prepare for and manage this? DB: We have to talk about everything from what the cooler is going to look like to category training. A lot of people think it’s moving the Coke over and sticking Coors in the cooler. It’s not that simple—there are many steps. The OCSA has had discussions with the federal government on the allocation of the promised $1.2 billion of grant money for small businesses—with refrigeration grants covering up to 50% of costs, it will allow us to expand our cold vault to accommodate future beer sales, while not unbalancing our total beverage category.

This will require a major overhaul to make way for new products. DB: Everyone’s going to have to look at their store and say, “How do we rationalize products we don’t need?” The centre of the store is very expensive real estate that probably represents 10% to 15% of the total sales—most sales either come from the cold vault, the lottery terminal or the front counter with its impulse purchases. The rest is sort of fill in, so how do we look at the store of the future? What do you merchandise next to the beer? And how do you get your impulse items rearranged in your store to create sales opportunities? If you look at the well-run disciplined chains like 7-Eleven, they already have a nice foodservice programme. Maybe independent convenience stores will be able to get enough capital by having beer to actually do that too.

What else must be in place for this to work? DB: Certification and training. How are we going to train 78,000 people to handle alcohol and build confidence that we can do it as well as we do with the tobacco file? We’re working quietly with the government on a programme called Smart Age and we’ll be able to tell more about it as it moves forward.

What are the biggest concerns from independents? DB: How it will look. We’re working with the craft brewers association and with the local wineries to start educating retailers on what to expect. Craft beer is the lead on this: There seems to be a real movement in Ontario, especially with Millennials, to craft beer. And that’s what our channel desperately needs, the next generation of shoppers.

What are you doing to ensure smaller operators can compete against the big players? DB: We have a recommendation in to ensure that everybody adheres to a minimum price structure, not a maximum, a minimum. So that will not allow for predatory pricing by big chains, or by big brewers. Convenience stores will never be able to sell beer if everybody is under pricing them. So we’re saying to the government, “You should have some type of responsibility when it comes to minimum pricing.”

And the timeline—how do you see this playing out? DB: I hope we’ll get the ribbon cut by late fall or early next year for the first wave of stores and then we’ll be able to announce some type of larger rollout, perhaps 500 c-stores. ◗ This interview has been condensed and edited.

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