Stores of the Future
Trial and Error? Or is there really a plan?
The Power of Going
Summer Sales have started... see our spICE this month.
2 REFRIGERATION Magazine â”‚June 2019
June 2019 Vol. 202 │ No. 6 ISSN #0034-3137
EDITORIAL STAFF Editor/Publisher Mary Y. Cronley email@example.com (404) 819-5446 Senior Staff Writer Joe Cronley firstname.lastname@example.org (404) 295-5712 Art Direction Markurious Marketing email@example.com (678) 439-6534
ADVERTISING, SUBSCRIPTIONS, ACCOUNTS Mary Y. Cronley Editor/Publisher firstname.lastname@example.org (404) 819-5446 Established as ICE in 1906, Refrigeration Magazine™ is published thirteen times a year, including the Annual Buyer's Guide. Postmaster: Send notice by form 3579 to: Refrigeration Magazine 2930 Cedar Knoll Drive Roswell, GA 30076 Annual Subscriptions: US: $49/year or $79/two years International: $79/year
Letter to the Editor
Home Depot, Zivelo Share Insights at NRF on Building the Store of the Future
How C-Stores Can Localize Their Product Offering Effective Promotions Turn the Tide of Declining C-Store Trips
IN MEMORIAM Industry Obituary – Arnie Poggensee
12 AD INDEX
12 CLASSIFIED ADS
A list of our advertisers
Classified advertisements by region
Single Copies: $6/copy
Copyright © 2019 by REFRIGERATION Magazine™. All rights reserved.
FIND OUT MORE AT refrigeration-magazine.com OR CONNECT WITH US AT facebook.com/refrigeration-magazine
REFRIGERATION Magazine │ June 2019 3
July 4, Black Friday for Packaged Ice It is ironic that, in an age where most things you need for survival and comfort can be summoned by an app, one of the biggest factors in our business’ success is weather. Think about psychology 101: food, shelter, water, companionship, all available from your phone. We could create the coolest app imaginable that would deliver packaged ice to your location, but in the end, it would make little difference if it rained the week of July 4. We’ve had a good Memorial Day, so your season should be off to a good start. Throughout most of the country we’ve had good to hot weather, no major anomalies. It’s too early to predict what July 4th sales will be, but with the holiday falling on a Thursday this year, we’re looking at a possible abundance in sales, bolstered by an extended weekend. Here’s hoping for heat and sunshine! The fact that one influence completely out of any of our control can affect our sales so much has a flip side: Those factors that we can control, we must. Production and storage must be as efficient of both energy and employee time as possible. Trucks must run well and represent your brand to the public. Same with your drivers and helpers: Their training and attitude, appearance, and efficiency must be totally on point. Billing and collection needs should not be neglected. If you’re running a tight ship on the things you can control, you can better roll with the punches when things you can’t become a factor. If you hired your seasonal help with the specific that their hours are demand dependent, when your season is lean you can thin out that cost area before you have to look at your full time and 12 month staff. It’s no fun to send somebody home without a paycheck, but if you made the deal clear from the beginning you should be able to sleep easy. If you need to park a truck and take it off insurance,
you should know if you can cover the note. You may want to sell it and consider your needs again next spring – if you know your business well enough, you can do that math. It’s easy to be fat and happy when the cash flow is good. It’s human nature. We’re in an awesome business because the limitations – a physical product you can touch and feel, expensive to produce and store, primarily used with food and beverage – can become strengths. You can’t create an app to produce a physical product, and our price point is probably too low to justify driving it to you like delivery food. It’s expensive for us to make and store, and even less convenient for the end user to make and store in the quantities needed. Finally, even when people are too broke to buy luxury brands, take Uber or Lyft to see the touring show of Hamilton, or eat at expensive restaurants, they still need their basic human needs of fresh food and cold drinks. There is still demand for your product. I hope it’s a rain free scorcher all across the country on the United States’ 242nd birthday. Even if it’s not, you have all the tools you need for a successful summer. Let us know how it comes out.
Mary Yopp Cronley Editor, Refrigeration Magazine
Upcoming Industry Events Convention
Northeastern Ice Annual Convention
October 13 – 16, 2019
IPIA 102nd Convention & Tradeshow
November 4 – 7, 2019
Ponte Vedra Beach, Florida
4 REFRIGERATION Magazine │June 2019
Mary, you still look like you’re 28! Good on you! Hope all is well in your life; it’s been so long! Just wanted to thank you so much for the tribute to us in the April edition of “Refrigeration!” That was so kind of you to remember us and Bob was so pleased (I love that photo of us!). It was a lovely surprise
To the Editor
and the best thing about it was that Bob got a number of calls from ice industry colleagues remarking about the article and reminiscing about “the old days!” Last June, I nearly lost Bob due to a bleeding ulcer, but he miraculously came through and is now “looking forward” to that seemingly inevitable knee replacement; but before we do that, we’re finally going to find out what it is to take a summer vacation for the first time ever! We rented a waterfront place around Boston Harbor and our son is coming home from Boulder to celebrate Bob’s 70th, which in itself is hard to wrap my head around being 70! We’ve found an exceptional buyer for our brewery who plans to carry on the legacy of our “Ten Penny Ale” flagship brand and appreciates the history of our ice house (now on the CT State Register of Historic Places) and plans to renovate and preserve the original 1932 brick building and utilize the “tank room” for a “cool” looking tasting room, so perhaps I will have a followup article for you when that comes to pass! Mary, you continue to do an awesome job with “Refrigeration,” keeping it fresh and interesting and relevant; kudos to you and Joe, as well! All our best,
Gail & Bob McClellan
REFRIGERATION Magazine │ June 2019 5
Home Depot, Zivelo Share Insights at NRF on Building the
Store of the Future
by Elliot Maras
hat exactly will the store of the future look like? The question was on the minds of tens of thousands of attendees at the NRF Big Show in New York City recently.
According to leaders from The Home Depot, one of the nationâ€™s most technologically progressive retailers, and Zivelo, an interactive kiosk manufacturer, the store of the future will define itself through a process of carefully curated questions and experiments. 6 REFRIGERATION Magazine â”‚June 2019
Healey Cypher, CEO of Zivelo, and Albert Vita, director of in-store experience and visual merchandising at The Home Depot, co-presented their ideas on defining the store of the future to a standing-room-only crowd at the Javits Center in January.
The positivity and confidence that both leaders exuded was borne of several years addressing the challenge of integrating digital and physical retail. Cypher recalled that he first sought to bring online thinking to physical retail in his earlier role as head of retail innovation at eBay. Lessons from McDonald's Cypher’s confidence in addressing the store of the future challenge was likely boosted by the success McDonald’s has experienced with its self-order kiosks, which Zivelo provides in the U.S. Cypher said the McDonald’s kiosks have delivered 20–30 percent sales lifts on average. Cypher added that customers today want more from physical stores, which is where most retail commerce still occurs. “We know that customers expect a lot of us in the physical store,” Cypher said. “Customers want more. Now it’s about experiments. It’s about speed.” One of the most important changes in retail, Cypher said, is that for the first time in a long time, major retailers —
like digital retailers — are investing in the physical space. Technology and customer service Vita’s exuberance about the store of the future is based on his dual focus on technological experimentation and a genuine commitment to customer service. A Home Depot pilot store has 90 tests underway and includes a design center, he said. The company, the world’s largest home improvement store with more than 400,000 associates, recognizes that it is a privilege to serve customers’ home needs since the home is where their lives happen, he said. To visualize the store of the future, Vita said, it is necessary to recognize that retail is about human connection and value delivery. He sees his company’s pilot store as a living lab rather than a singular project. “This needs to be a sustained process that lives on,” he said. If that statement sounds theoretical, Vita added a dose of practicality in pointing out that experimentation is a mathematical process. The more experiments you do, the more successes you will have. He called this the “mathematics of innovation.” Whatever the test is about — be it self-checkout or in-store digital — it’s important to measure the results, he said. Additionally, he asked, what change does the experiment bring to inventory planning, replenishment, supply chain, marketing, IT and human resources?
Cypher agreed on the importance of measuring results. He said a key question is how much effort to invest in measurement. For example, he said, it is important to know the numerical relationship between sales and how long it takes for a retail customer to be served. How to begin How do you begin the process? Vita said that the first step is to ask questions — the right questions. The second step is to create the right mindset, he said. If you have a “scarcity mindset” — one that focuses on the competition — you will get scarcity. If you have an “abundance mindset,” you will find opportunity. The third step is to adopt the right values. The quality of a future store will never exceed how grounded it is in the company’s values, Vita said. “What value would you like to bring to life in your stores?” he asked. Vita cited “super-values” of empathy, humility and love. “At the root of all of these decisions is a genuine affection for our associates and our customers in our stores,” he said. Cypher suggested focusing on a handful of customer journeys that your company can master. RM
“All these pieces need to be part of the conversation,” Vita said.
REFRIGERATION Magazine │ June 2019 7
How C-stores Can Localize Their Product Offering By Tammy Mastroberte, Convenience Store News
Local products are more important to consumers today than in the past. While localization spans multiple categories, food and beverage is at the top of the list. Whether sitting down for a meal at a restaurant or shopping for food, consumers are looking for more information on what they are eating and drinking, and are especially interested in items that are fresh. In many cases, local food and produce equals fresh. “Millennials and Gen Z have challenged us to have more transparency in everything we do, and they want to trace food back to the source,” said Ryan Krebs, director of foodservice at Rutter’s, based in
8 REFRIGERATION Magazine │June 2019
York, Pa., and operating more than 70 convenience stores. “They are more attached to the shopping experience than the previous generation. They want to know where it comes from, and there is a perception that it’s fresher if local because it travels less and sits for less time in the store.” In the convenience store space, community is important, and many chains already work with local businesses and charities in a variety of ways. This makes the convenience channel a prime player to offer local products because the community is often familiar with them already, and tend to be more loyal and supportive of businesses in their area.
IN MEMORIAM In fact, 55 percent of consumers in the United States have very little confidence in big brands, according to the 2017 Global Future Consumer Study by management consulting firm A.T. Kearny. This is up from 36 percent in 2012.
“Our community is very passionate about keeping the money in the community and, with us being in business for 85 years, we pride ourselves as being locally owned. We even have a sign that says, ‘Thank you for shopping local,’ when you walk out the door,” said Jim DeFilippis, vice president and general manager of NOCO Express, the Tonawanda, N.Y.-based operator of more than 35 c-stores.
This came from Tom Howat, Secretary of the Mo. Valley Ice Manufacturers Association. Of course at this publishing, the funeral has passed, but still worth printing here. Thanks Tom.
“There are also a lot of products people grew up with that are ‘musthaves,’ so we support them because they have a good following.”
Most of you receiving this probably will not know or remember this man. He dropped his MO. Valley membership a few years back but - in his younger days he was quite active in our group. Arnie (Rebel) Poggensee, owner of Crawford Ice in Denison, IA, passed away last Sunday, May 23, 2019, he was 74. Visitation will be Friday May 24, at the Hubner Funeral Home, 1437 Broadway, Denison, IA from 4:00 pm to 7:00 pm. Services will be Saturday May 25th at Our Savior Lutheran Church, 500 North 24th St., Denison, IA at 10:30 am.
Best practices for localizing a c-store’s product offering include: – Start out by creating a definition of what “local” means to your business. It could mean manufactured in the state, or produced within a certain mile radius of your headquarters. – Once you’ve set your definition, investigate what is available that falls into that footprint. You’ll likely be surprised at how many options you find. – Don’t limit yourself to just local foodservice items, or local beer and wine, which is where many retailers start. Think outside the box, such as a partnership with a florist in the area or a local farmer’s market. – Check if your existing distributors have any local products available. Some of them may carry products that fit into your definition of local, and they’re already delivering product to your stores. – Once you find partners and get distribution set up, it’s time to advertise so that shoppers know you carry local products and can easily identify them in the store. Product tags, voiceover and digital screen messaging in-store and at the pumps, and social media promotion are all valid approaches. RM
of consumers in the United States have very little confidence in big brands
The “Poor Rebel” (a nickname Arnie picked up while in the military) was (and still is, as far as I know) the logo on Arnie’s ice bags since the early 1980’s. In 2015, as a backlash to racism and a mass shooting in Charleston, SC; Walmart pulled his ice from the shelves of the stores he serviced because the bag had the Confederate Flag on it. Yes, Crawford Ice Company made the national news. You can check out the story in the Des Moines Register published July 10, 2015. May he rest in peace. Respectfully submitted, Tom Howat, Secretary RM
REFRIGERATION Magazine │ June 2019 9
Turn the Tide of Declining C-store Trips Non-traditional missions, food bundles and innovative products work for the convenience channel. Disruption is everywhere — from the increase in e-commerce to outside economic factors to competitive channels inching further into the convenience channel’s turf. Looking at the industry through a 10-year lens, key factors affecting convenience stores in 2008 included gas prices passing $4 per gallon, a dire economic situation, the beginning of the healthier lifestyle movement and smartphones growing in popularity and effectively changing how retailers sell things, according to Andy Jones, president and CEO of Sprint Food Stores Inc. in Augusta, Ga. At the time, many wondered how the convenience store industry
would survive, according to Jones. But convenience didn’t just survive, it prospered with new categories. Notably, energy drinks saw 10-year industry growth of $5 billion-plus and c-store prepared foods saw 10-year industry growth of $41 billion, he noted. “Disruption should make us think about opportunity,” Jones said at the 2019 NACS State of the Industry Summit, which took place April 2-4 in Rosemont. Jones is also vice chair of the NACS Research Committee. One area where disruption is especially hitting convenience stores hard is in the number of customer trips being made. Excluding fuel, convenience store trips were down 2 percent in 2018, according to Jason Lobel, CEO and co-founder of SwiftIQ. Looking at some
By Melissa Kress
top categories, cigarette trips were down 2.4 percent, packaged beverage trips were down 3 percent to 4 percent, beer trips were down 3 percent to 4 percent, and candy and snack trips were down 2 percent to 8 percent. And not only are the trips down, but so are the categories themselves, meaning consumers are buying less as well. However, there are some standout categories: • Other tobacco product trips are up 3 percent to 5 percent; • Food prepared onsite trips are up 3 percent to 5 percent; and • Lottery trips are flat to up 2 percent. The downward trend in trips can be reversed through promotions, advised
So, what is working in convenience? Non-traditional missions; food bundles and meal deals; first to market with innovative products; and tactical displays are the most successful.
10 REFRIGERATION Magazine │June 2019
Lobel. Consumer packaged goods companies spend approximately $225 billion annually on trade promotions — and that amounts to more than 30 percent of their marketing and advertising budget. “There are a lot of dollars floating around,” he said. There are several things a c-store operator should keep in mind when considering a promotion, according to Lobel. The list includes length of promotion, purpose of the promotion, support behind the promotion, and if the time is right for the promotion. Everyday low pricing promos are not promotions, Lobel stressed, because customers come to expect them. So, what is working in convenience? Non-traditional missions; food bundles and meal deals; first to market with innovative products; and tactical
As for promotions in general, they fall into four primary types:
displays are the most successful, he explained. On the other hand, what’s not moving the needle are items bundled from opposite dayparts; no support (like signage); too many promotions; and small temporary price reductions, he said. Still, it is not enough just to run a promotion. Retailers need to know if the promotion is working. “You need to ask yourself if you are using the
SAVE WITH BUNDLES
BUNDLES WITH DISCOUNTS
wrong measurement tools for the modern world,” Lobel said, noting that measuring units per week is just the tip of the iceberg. C-store operators can mine a lot of trip data from store receipts, including basket size and items, loyalty information, and day and time of purchase. “You really have to understand your stores, your assortment and your customers,” he said. RM
REFRIGERATION Magazine │ June 2019 11
CLASSIFIEDS Ad Index
American Ice Equipment Exchange, aieexchange.com..................................... 13
Rates are $1.00 per word, with a minimum charge. Any blind ads, with an assigned box number c/o publisher, add $10.00. Deadline for upcoming issue is the 1st of the previous month.
Classified Ads....................................................................................................... 12 – 15 Ice Systems & Supplies Inc. (ISSI), issionline.com.............................................. 2 & 13 Ing-Tech Corporation (ITC), itcpack.com....................................................... 11 & 12 Keet Consulting Services, LLC (RouteMan), kcsgis.com........................................... 5 Polar Temp, polartemp.com..................................................................................... 16
For advertising and listing information, contact Mary at (404) 819-5446 or email@example.com.
NATIONWIDE/INTERNATIONAL USED EQUIPMENT FOR SALE 1-800-599-4744 | itcpack.com ICE MAKERS
• VOGT P24A ICE MAKERS (2) • VOGT P34AL W/ HIGH SIDE
•HAMER 125 – NEW, USED AND REBUILT
• HAMER RING CLOSER W/CONVEYOR
• 20 HP KRACK CONDENSER
• HAMER 125 W/ STAND & CONVEYOR • HAMER 310 W/ 125 CLOSER
• LIQUID OVERFEED VALVE PACKAGE
• PALLET DISPENSER
• 6.5 BOHN W/ EVAP CONDENSER W/ UNIT COOLER
• SS SHAKER W/ STAND
• MARLEY TOWER W/ PUMP
BLOCK MAKERS • LEER BL39 W/ REMOTE CONDENSER • TURBO BP-360 BLOCK PRESS
SUPPLIES • LEER ICE MERCHANDISERS IN STOCK • BAGS AND WIRE • PARTS • SPARE PARTS
12 REFRIGERATION Magazine │June 2019
• SLIP SHEET DISPENSER
BAGGERS • VL - 510 • VLS - 510
SCREW AND BELT CONVEYORS • HYTROL BELT CONVEYORS 10’ & 12’ • PORTABLE FOLDING INCLINE CONVEYOR - MODEL R • POWER 90 BELT CONVEYOR
FOOD GRADE VOGT TUBE ICE FOR SALE 6 AND 26 POUNDS BAG We are located in Magog, Quebec, Canada 20 min from the border of Vermont. We can bag in other size for serious quantity. Call or e-mail: SAMUEL BERNARD Toll free : 1 855-847-0865 firstname.lastname@example.org
SOUTHEAST USED EQUIPMENT FOR SALE
• Snow Crusher/blowers • Perfection 25lb Ice Scorer • 12”x10’ Stainless Screw
conveyor • 9x24 Stainless Screw Conveyor • 9x10 Galvanized Portable
Screw conveyor • 10 ton turbo Ice Makers • 15 Ton turbo Ice Makers • 20 ton turbo Ice Makers • 2013 100 ton Turbo Ice Maker • 2015 Tiger, turbo Ice Maker • Arctic Temp 4000 Lb Ice Maker
• Vogt P24FL Mid Tube and High
• 1/2HP drop In Refrigeration • Vivian Manual Block Press
• Vogt 218 Mid tube Ice Maker
• 7lb Roll Stock
• Belt Conveyor, Hytrol TA 12’
• Snow Cone Block Cans
• Vogt 118’s 5 Ton Ice Maker 7/8, • 22lb Roll Stock • 10LB Ice Cans (45) 4.5” x 8” x 14”T W/C • Belt Conveyor, Hytrol BA 16’ • Water Softener System • 300lb Ice Cans’ • Blue Bins • Amcot ST-25 Cooling Tower • Marley 4821 Cooling tower • Hamer 310 Form, Fill, & Seal
• Orbital 16 ton Ice bin • MGR 3000SD Stainless Bin • Collapsible Blue Bins • Mannhardt 2801 Ice Bin • Matthiesen VL510, Top Load
Bagger, Galv • JMC 4’ Belt conveyor
• Ice Max 300, 300lb block Baker
AND MUCH MORE!
If you have discontinued ice bags or used equipment you would like to sell PLEASE CALL. SEE OUR USED EQUIPMENT WEB PAGE AT AIEEXCHANGE.COM. Call for surplus ice! Polar Temp Equipment Mike Landino - Toll free - 1-877-376-0367 E-mail (NEW ADDRESS): email@example.com Don’t forget to call if you have a quality piece of used equipment for sale.
USED EQUIPMENT FOR SALE • Turbo Tig 33 Ice Maker, 98 model •M ycom N6WB Compressors w/125 HP motors skid mounted with oil separators (used with Vogt P34AL ice makers) • Turbo CB38 Rake • S crew Conveyor Drive Packages for 9" and 12" conveyors (great condition) • Hammer RBC with conveyor • Stainless 9" and 12" screw conveyors • 21' Hytrol belt conveyor • T urbo CB87 with plastic chain and sprockets and stainless steel flights •M orris 18 ton Tube Cube Maker, R22, 2006 model complete with evap condensor 1" ice • Vogt 218, rebuilt in 2005, complete with cooling tower
FOR SALE 1 Clinebell 400 lbs Ice Block Maker with Hoist and Lift Bar CD300X2D 115 Volt – Like New, Works Great Purchased in 2013 for $7,000 Asking $3,500 FOB: Spartanburg, SC
Call (864) 237-0333
"NEW" KAMCO PARTS Ice Systems & Supplies Rock Hill, SC Toll free (800) 662-1273 or (803) 324-8791
REFRIGERATION Magazine │ June 2019 13
SOUTHEAST EQUIPMENT FOR SALE • •
asterbuilt walk-in freezer M 13’x15’x7’tall
ytrol incline conveyor H 20”x16’
Surplus 8# ice bags on wickets
• Miscellaneous parts for ice Incline screw conveyor merchandisers • Hytrol conveyor 12”x6’ 9”x14’ Jones Refrigeration, Randolph, MS | CALL 662-419-5119
NORTHEAST VOGT ICE FOR SALE 5, 7, 16 & 40 lb. bags. Water is lab tested for purity. Delivery or pick-up. Six generations of quality.
ICE FOR SALE Vogt Mini tube ice, 8, 20 & 40 lb. bags. All ice is screened, palletized & stretch wrapped. We deliver or you pick up. Our water is treated with ozone for sterilization. No chlorine added!
Martin's Ice Company
Phone (717) 733-7968 or fax (717) 733-1981 PA
EQUIPMENT FOR SALE Long Island Ice & Fuel Corp.
Call (631) 727-3010
ICE CARVING TOOLS Plastic liners for clear block makers $1.24/ea Reusable drip pans from $6.50/ea Over 500 items in stock for Ice Carvers
or (440) 717-1940
Suction Accumulator - Chil-Con, Model #AA24084, 24” x 7’ high, with boil out coil – Like new condition $6,000.00 Receiver 12’ x 30” with warming loop used with Vogt ice makerLike new condition - $6,000.00 Toshiba 125 HP Motor, Premium Efficiency Contact Kyle at Long Island Ice & Fuel Corp.
(631) 727-3010 or (516) 790-6842
USED EQUIPMENT FOR SALE
1-800-543-1581 | modernice.com Handling Ice Makers • Vogt Ice Maker – P24A • Morris Ice Maker • Vogt Ice Maker – P118 • Turbo Ice Maker – CAR120 • Turbo Ice Maker – CF40SCER • Vogt Ice Maker – P418 • Vogt Ice Maker – HE30 • Kold Draft Ice Maker
• Matthiesen Shaker Belt with Stand • Shaker • 12” Stainless Steel Auger (Several Lengths) • 12” Stainless Steel Shroud Trough Cover Packaging • Matthiesen Heat Seal Bagger • Matthiesen Baler (3 Available) • Hamer Form, Fill, and Seal Machine - 310
Check our most recent inventory online at modernice.com! 14 REFRIGERATION Magazine │June 2019
FOR SALE Ice carving crystal clear blocks 300lb blocks
(518) 851-7085 Merchandiser Parts for all brands at competitive prices.
MIDWEST FOR SALE (3) Clinebell 10 lb. ice block makers, Model S60, 1.5HF,
PRIVATE LABEL COCKTAIL ICE
(3) condensing units, 3-phase, 240 volts.
Our ice IN the box. Your name ON the box.
Will sell individually, or all three for $12,000.
Large Cubes & Perfect Spheres
Call Arctic Ice at
Sealed – Boxed – Ready to Deliver
Don't waste time & money making your own. David Holland 405-279-9747 firstname.lastname@example.org vaultice.com/privatelabel
CANADA ICE EQUIPMENT FOR SALE • Magic Finger • (8) Turbo Ice Makers, 10 & 20 Ton • Cooling tower pumping station • Hamer 125 • 16 feet stainless steel auger • (3) power pack for freezer • Kamco bin • Forklift • Indoor/outdoor merchandisers
• Ice bags • Trucks • Other ice equip. and misc. items • 360 Turbo Block Press • Bagger
Contact Lino at
REFRIGERATION Magazine │ June 2019 15
16 REFRIGERATION Magazine â”‚June 2019
The June 2019 issue of Refrigeration Magazine, the leading magazine of the packaged ice industry, features the Stores of the Future, C-Store...
Published on Jun 14, 2019
The June 2019 issue of Refrigeration Magazine, the leading magazine of the packaged ice industry, features the Stores of the Future, C-Store...