NACS Magazine December 2023

Advancing Convenience & Fuel Retailing

DECEMBER 2023 BEER COOLERS Right-size your beer selection LABOR SOLUTIONS The case for older workers

Retailers rely on old techniques and new technology to limit shoplifting

convenience.org

TM

You are your greatest representative.

CLICK HERE TO GET INVOLVED

Join store owners across the country who are fighting for fair tobacco policies.

ONTENTS NACS / DECEMBER 2023 FEATURES

30 Hands Off Retailers rely on old techniques and new technology to limit shoplifting.

38 Harm Reduction in 2024 and Beyond

The future of the backbar ... or regulated out of existence?

52 The Case for

Older Workers

On the cover: NinaM/Shutterstock. This page: Dimitri Otis/Gettty Images; LoveTheWind/Getty Images

One possible solution to the labor shortage: People who are retired but want to come back into the workforce.

58 2023 Convenience Voices Data First Look

46

The survey reveals insights on holiday travel plans.

The Right Time for a Beer Reset Beer category dynamics highlight the importance of ongoing cooler resets and space allocation.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

Subscribe to NACS Daily—an indispensable “quick read” of industry headlines and legislative and regulatory news, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily.

linkedin.com/company/nacs NACS DECEMBER 2023 1

ONTENTS NACS / DECEMBER 2023

DEPARTMENTS 06 From the Editor 08 The Big Question 10 NACS News 20 Convenience Cares 22 Inside Washington

What’s the lay of the land heading into the 2024 elections?

28 Ideas 2 Go

Green Spot blends natural food and beverages with convenience.

60 Cool New Products 64 Gas Station Gourmet IT’S A FACT

$51.8 Billion

Calloway’s Tennessee Kitchen features “affordable, delicious regional food.”

66 Category Close-Up Cigarettes

72 By the Numbers

CATEGORY CLOSE-UP PAGE 66

PLEASE RECYCLE THIS MAGAZINE 2 DECEMBER 2023 convenience.org

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

jecka/Getty Images

Total convenience channel cigarette sales in 2022.

/ DECEMBER 2023 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard V.P. Strategic Industry Initiatives (703)518-4272 jlenard@convenience.org

CHAIR: Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Lisa King Managing Editor lking@convenience.org Batya Levy Editor blevy@convenience.org Leah Ash Assistant Editor lash@convenience.org CONTRIBUTING WRITERS Terri Allan, Amanda Baltazar, Shannon Carroll, Sarah Hamaker, Al Hebert, Stephanie Overman, Emma Tainter, Melissa Vonder Haar DESIGN Imagination www.imaginepub.com

ADVERTISING Stacey Dodge Advertising Director/ Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols Leidich National Advertising Manager/Northeast (703) 518-4276 jleidich@convenience.org Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org

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

Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Chuck Maggelet, Maverik Inc.; Don Rhoads, The Convenience Group LLC; Brian Hannasch, Alimentation Couche-Tard Inc.; Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charlie McIlvaine, Coen Markets Inc. PAST CHAIRS: Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly;

Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; John Jackson, Jackson Food Stores Inc.; Ina (Missy) Matthews, Childers Oil Co.; Brian McCarthy, Blarney Castle Oil Co.; Tony Miller, Delek US; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, FavTrip; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, Impact 21 STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

NACS SUPPLIER BOARD CHAIR: David Charles, Cash Depot CHAIR-ELECT: Vito Maurici, McLane Company Inc. VICE CHAIRS: Josh Halpern, JRS Hospitality/BCIP dba Big Chicken; Bryan Morrow, PepsiCo Inc.; Kevin LeMoyne, Coca-Cola Company PAST CHAIRS: Kevin Farley, Impact 21; Brent Cotten, The Hershey Company; Drew Mize, PDI MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe, Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi,

Oberto Snacks Inc.; Ramona Giderof; Mike Gilroy, Mars Wrigley; Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods LLC; Kevin Kraft, Q Mixers; Jay Nelson, Excel Tire Gauge; Nick Paich, GSTV; Sarah Vilim, Keurig Dr Pepper RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Chuck Maggelet, Maverik Inc.; Tom Brennan, Casey’s STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIR: Kevin Martello, Keurig Dr Pepper

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

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

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

ameriCan grown • manufactured • owned

ThaT’s The Premier advanTage Premier Manufacturing, Inc. is owned by U.S. Tobacco Cooperative, a cooperative of proud American farmers who grow the finest flue-cured tobacco in the U.S. to make high-quality, value-priced cigarette brands for adult consumers.

www.gopremier.com/contact w.gopremier com/contact

UP FRONT FROM THE EDITOR

Speaker of the House Mike Johnson participated in the NACS In Store program in 2022.

Behind the Counter

W

ho? That’s no doubt what a lot of people thought when they heard that Rep. Mike Johnson was the new speaker of the House of Representatives. Johnson has only been in Congress since 2017, and he lacked the national visibility of other contenders for the gavel like Steve Scalise and Jim Jordan.

But in Oakdale, Louisiana, Johnson is well-known. Not only does he represent the community in Congress, but he put on a uniform and stepped behind the counter at the local Y-Not Stop in 2022 as part of the NACS In Store program.

His host that day was NACS board member Annie Gauthier.

In fact, all three of the top leaders in the house can boast that they are NACS In Store alumni. Scalise, the majority leader, participated in 2015, and Tom Emmer, the majority whip, did so in 2018.

You can read about the In Store program in Inside Washington, starting on page 18.

Speaking of behind the counter—and skipping to the final page of this issue— DSOE jumped in 2022, up 14.3% from 2021. Wages and benefits rose from $35,418 per store, per month to $46,980.

If you want to be the first to know how DSOE shaped up in 2023, join your peers in Chicago this April for the NACS State of the Industry Summit.

6 DECEMBER 2023 convenience.org

Here’s another spin on the question of who’s behind the counter. At last year’s NACS State of the Industry Summit, I heard Lori Buss Stillman propose that embracing older workers could ease the labor shortage. That inspired an article in this issue of NACS Magazine, “The Case for Older Workers.” One simple suggestion from that story: Let them sit.

I hope your 2023 ends on a high note.

See you in 2024.

Ben Nussbaum Editor-in-Chief

All three of the top leaders in the house can boast that they are NACS In Store alumni.

UP FRONT THE BIG QUESTION

What does it mean to be a food-first c-store?

 Terri Micklin, president, GetGo

8 DECEMBER 2023 convenience.org

At GetGo, food is part of our heritage. Being part of the Giant Eagle grocery store family, we started with local families that founded our company on the basis of bringing food to the local community. Food is in our DNA today. We’ve been able to unlock all of that heritage from the grocery and supermarket side and bring it into the convenience format in a new way that I don’t think that you get anywhere else in the industry.

Anything that you would find on a major supermarket shelf, we can turn that ingredient into one of our special release menu offers.

You’re going to see a lot more of that coming up. We’ve got a great launch coming on a new chicken sandwich.

We’re officially entering the chicken sandwich wars, and we’re going to have the same types of exciting chicken sandwiches that you’d normally see in the QSR space brought into the convenience environment, with some great sauces, also.

You need to meet the customer and think like the customer, all the time, and understand what they’re looking for. Most of our customers aren’t coming in looking for just the same item every day. What we’re trying to do is blend what we’re really good at delivering with the variety that the customer appreciates in that season.

The seasonality piece is key.

For the Thanksgiving season, we’re featuring our Pilgrim sandwich, which is the classic Thanksgiving

sandwich. But rather than delivering it in a traditional way, The Pilgrim is on a proprietary, fresh-bakedin-store stuffing bread. You can’t get this anywhere else. And we’ve applied this special touch with all our offerings. We really are well-known in our communities for our limited time offers. Then, we also have our consistent menu that runs underneath it, full of favorite items that people crave year-round.

One of the things that we’re thinking about differently now is how you create linkage by leveraging foodservice, our made-to-order food program, to highlight the other elements inside our store. You’ve seen this across the industry as companies partner with major brands for a specialized drink or a specialized menu item. We’re trying to create these ties that allow our customers to come in and explore the rest of the store through the kitchen environment.

That, I think, is the next big unlock in foodservice right now; how do you bridge the gap so that it’s not two separate businesses running inside the store, but one cohesive business, with foodservice and the other in-store offers playing off each other?

You have to refresh and innovate, continually. You have to be at it every year, really talking to your customer and understanding what they’re looking for and finding new ways to deliver that to them. Innovation happens every day.

UP FRONT NACS NEWS

Convenience Summit Asia Registration Is Open Looking to stay ahead of the curve in convenience retail? NACS Convenience Summit Asia takes place March 5-7, 2024 in Seoul, South Korea. Every year, attendees from across the globe meet in the epicenter of retail disruption and innovation—Asia—for an immersive look into the future of convenience retailing.

Convenience and fuel executives will unlock exclusive networking opportunities, stay up to date with the latest industry advancements and experience interactive store tours of some of Asia’s most iconic brands.

What you can expect from attending: Thought leadership: Discover new ideas, products and solutions that address the challenges and opportunities of today, tomorrow and well into the future.

10 DECEMBER 2023 convenience.org

Strategic relationships: No other convenience industry event brings together leaders in store operations, marketing innovation, retail design, fuel delivery and other key performance areas. Meet leaders who can make a difference to your business and career in a face-to-face setting.

Immersive learning: Hear retailer case studies, success stories and best practices that will help you benchmark your business for today and tomorrow.

Exchange best practices and form deep collaborations through casual and facilitated conversations with the best and brightest minds in our industry. Visit convenience.org/events to register and learn more about this upcoming event.

Celebrating NACS Show Donations At the NACS Show each year, the industry gathers to exchange ideas and share best practices, but the goodwill of the community doesn’t stop after four days. The 2023 NACS Show wrapped in October, and NACS, with the help of the Atlanta Community Food Bank and other organizations, facilitated the donation of eight truckloads of food and supplies.

Since 2002, NACS has coordinated donations after the Show closes, with this year marking the largest contribution ever.

The NACS Show spotlights more than 1,200 suppliers, with food and beverage a huge category. While attendance at the Show tops 20,000 people, there is always some product remaining that suppliers don’t want to take back home for logistical reasons.

NACS, along with the Georgia World Congress Center, assisted with logistics like paperwork, badges, parking and training for nearly 150 volunteers. As the Show’s end approached, NACS distributed bright orange stickers to mark the items that would be donated so that the volunteers could easily collect and take items to the appropriate donation trailer.

Coordinating the donations takes months of preparation—and many hours on the Show floor. It’s another way of demonstrating what the convenience industry is all about— community.

-slav-/Getty Images. Hispanolistic/Getty Images

2023 NACS Show Education Sessions Available On Demand More than 40 education sessions from this year’s NACS Show are available, offering information, insight and insider knowledge that retailers need to compete and thrive. (Please note that Super Sessions and Small Operator Workshops are not available.)

List Price:$299.00 NACS Member Price: $249.00

Order at convenience.org/store.

NACS DECEMBER 2023 11

UP FRONT NACS NEWS

NACS Welcomes New Staff Jeff Burrell

Leah Ash

JEFF BURRELL JOINS NACS AS VICE PRESIDENT OF RETAIL ENGAGEMENT Jeff Burrell has joined NACS as vice president of retail engagement. In this role, Burrell will work with senior leaders in new and existing member companies, along with their employees. He also leads the NACS retailer engagement team and engages with other NACS teams that drive and support industry engagement.

Burrell has extensive industry experience, including senior executive positions at TravelCenters of America, Alimentation Couche-Tard/Circle K and BP. He earned a B.S. from the University of Pittsburgh, an MBA from the University of Phoenix and a master’s in marketing from Northwestern University’s Kellogg School of Management.

LEAH ASH JOINS NACS AS ASSISTANT EDITOR Leah Ash has joined NACS as assistant editor. In this role, Ash will edit and write copy for NACS’ award-winning media properties, including NACS Daily, NACS Magazine and Fuels Market News Magazine. She earned a B.A. in English writing from Aquinas College in Grand Rapids, Michigan, where she also served as culture editor for the school newspaper and writing center consultant.

Calendar of Events 2024

FEBRUARY NACS Leadership Forum February 13-16 | The Ritz-Carlton Amelia Island, Florida MARCH NACS Convenience Summit Asia March 05-07 | Signiel Seoul Hotel Seoul, Korea NACS Day on the Hill March 11-13 Washington, D.C. NACS Human Resources Forum March 18-20 | Hyatt Regency Jackson Riverfront | Jacksonville, Florida

APRIL NACS State of the Industry Summit April 03-05 | Hyatt Regency O’Hare Chicago Rosemont, Illinois Conexxus Annual Conference April 28-May 02 | Live! By Loews Arlington Texas Arlington, Texas

JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania NACS Executive Leadership Program at Cornell July 28-August 01 | Dyson School, Cornell University Ithaca, New York

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

12 DECEMBER 2023 convenience.org

NACS DECEMBER 2023 13

UP FRONT NACS NEWS

Member News RETAILERS

SUPPLIERS

The Wills Group announced Mark Samuels now serves as executive vice president of convenience retailing. Samuels Mark Samuels will continue to lead efforts across the Wills Group to transform the Dash In and Splash In ECO Car Wash lines and oversee the company’s continued expansion across the Mid-Atlantic region.

S. Abraham & Sons Inc. (SAS) announced the retirement of Dick Minor, Michigan regional vice president of sales.

Dick Minor Minor began his career with SAS in 1982. In 1998, he served as regional vice president of sales for eastern Michigan, and in 2012 assumed responsibility for all of Michigan.

Minor was an active member of the Michigan Petroleum Association, Central Michigan Oilmen’s Club and Detroit Oilmen’s Club.

GPM Investments LLC named Richard Guidry senior vice president of foodservice.

Guidry brings over 18 years of Richard Guidry experience in the convenience store industry. Prior to joining GPM, Guidry was brand director of foodservice at Casey’s, where he led menu innovation and simplification initiatives. He also served as director of operations. In addition, Guidry spent 15 years in various marketing and operational leadership roles at RaceTrac.

Benjamin Lucky now serves as vice president of foodservice at Cal’s Convenience.

In his role, Lucky will be responsiBenjamin Lucky ble for streamlining processes, refining Cal’s foodservice menu, growing foot traffic and sales and working with manufacturers and distribution partners to advance its food offer.

14 DECEMBER 2023 convenience.org

Cheyenne International appointed Victor Blanco as regional sales manager. Blanco has 30 years of CPG experience, Victor Blanco developing skills and knowledge of the distribution and convenience store channels. Having held several management positions within tobacco companies, Blanco’s accomplishments are in talent development, sales training and sales execution.

Brent Sabo now serves as senior vice president, trade marketing at Reynolds Marketing Services Company.

Brent Sabo Sabo joined the Reynolds organization in 1993. He moved to Santa Fe Natural Tobacco Company, assuming the role of vice president of trade marketing in 2015. Brent

returned to Reynolds as an area vice president in 2017 and took over the vice president, strategic accounts role in 2020.

Eric Bandar now serves in the role of vice president, strategic accounts at Reynolds Marketing Services CompaEric Bandar ny. Bandar joined Reynolds in 2007 and filled several sales and account roles before a short period in the BAT Group headquarters in London. Bandar then transitioned into Reynolds’ head office, tackling roles across trade planning, pricing and performance.

Bryce Green joined Reynolds Marketing Services Company as area vice president for Southern sales. Green Bryce Green joined Reynolds after serving as the cluster head of commercial for BAT Malaysia. Green has worked in multiple commercial roles for the BAT Group over the past 15 years across a number of Asia-Pacific markets.

GET-TOGETHER BRANDS FO R T H E

GET-TOGETHER SEASON

Get Ready for a Season of Flavorful Festivities!

Holidays are all about exchanging gifts, creating cherished memories, and raising toasts to friends and family. This makes it the most wonderful time of the year for beer sales. So, ensure your shelves are brimming with timeless, iconic brands like Guinness Draught, Guinness Extra Stout, Smirnoff Ice, and Smirnoff Ice Smash. There’s a flavor and format for everybody. And a great sales opportunity for you! For more information, call your Guinness and Smirnoff Ice Distributor.

PLEASE DRINK RESPONSIBLY. Diageo, New York, NY

For more info: smirnoff.com | Guinness.com Follow us @smirnoff | @guinness NACS DECEMBER 2023 15

UP FRONT NACS NEWS

New Members NACS welcomes the following companies that joined the Association in September 2023. NACS membership is companywide, so we encourage employees of member companies to create a username by visiting www.convenience.org/createlogin. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership.

NEW RETAIL MEMBERS Wyoming Spirits Casper, WY mail.jrgrestaurants.com/ restaurants.php Applegreen LTD Lexington, SC www.applegreen.com Bisla Development LLC Sacramento, CA Citizens Fuel Company Asheville, NC Corner Post Watford City, ND EGY Management Southaven, MS Farm Stores Franchising LLC Coconut Grove, FL www.farmstores.com K Gas & Convenience Inc. Deer Park, NY LakeCity Mart Taylorsville, KY LMR Oil LLC Tulsa, OK London Travel Plaza London, KY NAVRATNA LLC Saltillo, MS Puckett Oil Co. Inc. dba Flagship Food Store Pensacola, FL Punjab Petroleum Inc. Cypress, TX Shawnee Grocery Stout, OH Shel’s Inc. Pierre, SD Verge Management LLC Moosic, PA www.montagebeerworks.com Waterboro Milk Room LLC Sanford, ME 16 DECEMBER 2023 convenience.org

Juniors Mini Mart Englewood, NJ Auto Posto Rodrigues Ltda Maceio Brazil JE Operadores S.A.C Callao, Peru www.estacion715.com

Calavo Growers Inc. Santa Paula, CA www.calavo.com Canovation LLC Fort Lauderdale, FL canovation.com

NEW SUPPLIER MEMBERS

CaptiveAire Raleigh, NC captiveaire.com

3 LEAPS Mount Pleasant, SC 3leaps.net

CMSPI Manchester, United Kingdom cmspi.com

3CHI Fishers, IN www.3chi.com

Coast coastpay.com

AAA Inc. Heathrow, FL www.aaa.com

Commercial Construction and Maintenance Bessemer, AL ccminc.net

AFG Distribution Asheville, NC www.afgdistribution.com

CRB Kansas City, MO www.crbgroup.com

Allan Sullivan Atlanta, GA www.allansullivan.com

DataWeave Bellevue, WA

Attack!

Portland, OR

Dorval Trading Co. Ltd. Nanuet, NY www.dorvaltrading.com

Beemak Plastics LLC Anaheim, CA beemak.com

DSi EV Solutions Alpharetta, GA www.dsievsolutions.com

Bella Tazza Café Suwanee, GA www.bellatazzacafe.com

Electrify America LLC Reston, VA www.electrifyamerica.com

Big Picture Networks Chandler, AZ

Eminent Property Management Farmingville, NY www.epmnational.com

BrandPoint Services Trooper, PA brandpointservices.com Brookwood Farms Inc. Siler City, NC www.brookwoodfarms.com Brown-Forman Louisville, KY www.brown-forman.com

Encore Technologies LLC Hoover, AL encoretechinc.com Envirospark Energy Solutions Inc. Atlanta, GA envirosparkenergy.com EverCore ISI New York, NY www.evercore.com

You can’t sell what you don’t stock.

Maximize customer expectations and profit margins by keeping your ZYN inventory full.

UP FRONT NACS NEWS

Facilio New York, NY www.facilio.com

LiveView Technologies Orem, UT go.lvt.com

Sky Retail Solutions LLC Dawsonville, GA www.makeitsky.com

FCTI Inc. Los Angeles, CA www.fcti.com

Main Cleaning Solution Carmel, IN maincleaningsolution.com

Sun-Staches Simi Valley, CA

FM Dashboard LLC Canton, GA fmdashboard.com

MeazureUp Inc. Toronto, Ontario, Canada www.meazureup.com

Food Service Specialties Red Wing, MN www.foodservicespecialties.com

Mexsnax Gonzalez Food Products Dallas, TX www.mexsnax.com

G&S Wholesale Distribution Allentown, PA

Midwest Trading Group Downers Grove, IL www.mtradinggroup.com

The Cullinan Group OUE Downtown 1 Singapore www.cullinangroup.com

Mybrandforce LLC Tempe, AZ www.mybrandforce.com

The Fremont Company Fremont, OH femontcompany.com

PA Liquor Control Board Enola, PA PLCB@pa.gov

Toast Boston, MA

Giles Food Service Equipment Montgomery, AL www.gfse.com Givex Marietta, GA givex.com Glassbox Limited Hamilton, New Zealand Global Distinction Hidalgo, Mexico www.hethewater.com GoMacro LLC Viola, WI www.gomacro.com Gudpod Corp.

Miami, FL www.gudpod.com GYM WEED Benicia,CA gymweed.com Harvest Group Rogers, AR www.harvestgroup.com Hylux New York, NY INAMAX Powered by Ultra Duluth, GA www.inamax.com Karat by Lollicup Chino, CA www.lollicupusa.com

Parsyl Denver, CO www.parsyl.com Peak Peaps Inc. www.peakpeaps.com PIX Alpharetta, GA www.pixcardprocessing.com PMC Commercial Trust Dallas, TX www.pmctrust.com Pollard Banknote Limited Winnipeg, Manitoba, Canada www.pollardbanknote.com POS Global Concepts Cordova, TN Promoflex Saint-Léonard, Quebec, Canada www.promoflex.com Retail Insight Atlanta, GA www.retailinsight.com Rollover Ltd Slough, United Kingdom

Leahy-IFP Glenview, IL www.leahy-ifp.com

Sati Soda Boulder, CO satisoda.com

Lehi Valley Trading Company Mesa, AZ www.lehivalley.com

Sclanet AI Plano, TX

18 DECEMBER 2023 convenience.org

TaskEasy by WorkWave Holmdel, NJ Texas Republic Signs Houston, TX www.texasrepublicsigns.com The Arcticom Group Highlands Ranch, CO

Triggerpoint Media LLC Austin, TX triggerpointmedia.com Triple Sticks Foods Belleville, IL Uber New York, NY www.uber.com Valvoline Global Products Lexington, KY www.valvoline.com Vytalogy Wellness Chatsworth, CA www.vytalogy.com Wavepoint 3PL North East, PA www.wavepoint3pl.com West Carrollton Parchment & Converting Inc. West Carrollton, OH wcpconv.com Yesly Water Sarasota, FL www.yeslywater.com Zipline San Francisco, CA retailzipline.com

CONVENIENCE CARES

Parker’s Kitchen Makes $1 Million Donation to America’s Second Harvest of Coastal Georgia The donation highlights the company’s commitment to providing meals.

P

arker’s Kitchen made a landmark $1 million donation to support America’s Second Harvest of Coastal Georgia, a nonprofit organization based in Savannah, Georgia, that serves as the food safety net for tens of thousands of individuals who are at risk for hunger across a 21-county area.

20 DECEMBER 2023 convenience.org

Parker’s founder and CEO Greg Parker presented a $1 million check to America’s Second Harvest of Coastal Georgia Executive Director Mary Jane Crouch during a hard hat tour of the nonprofit’s new 143,000-square-foot facility, which is currently under construction on a 20-acre site. Parker made the donation in honor of Hunger Action Month in September, expanding the company’s commitment to provide two million meals to hungry children in 2023.

“America’s Second Harvest of Coastal Georgia serves as a vital food safety net for so many children, seniors and families who are experiencing food insecurity throughout the region,” Parker said

during the check presentation ceremony.

“At Parker’s Kitchen, we want to be a force for positive change in our community. We hope this $1 million donation will help America’s Second Harvest feed even more children and more families in the future.”

The new America’s Second Harvest facility will double the existing warehouse, office, volunteer center and commercial kitchen space. A state-of-the-art warehouse will include 10 tractor-trailer docks. The new facility is expected to be operational by January 2024.

“We are incredibly grateful to Parker’s Kitchen for this generous donation, which will be critical to our success at our new location on Chatham Parkway,” said Crouch. Last year, Second Harvest’s food bank provided 22.8 million pounds of food, the equivalent of 19 million meals, to hungry people throughout coastal Georgia.

The new America’s Second Harvest food bank will include a 98,108 squarefoot warehouse, a 18,425 square-foot volunteer center and agency marketplace, a 13,480 square-foot Kids Cafe commercial kitchen and expanded office and training space. The organization is completing a two-year capital campaign made possible in part by a grant allocation from the Georgia Department of Community Affairs as well as many generous donors.

The Parker’s Kitchen donation will be made through customer round-up campaign contributions over the next five years as well as a Parker’s Kitchen match designed to maximize the campaign’s impact. Since Parker’s Kitchen launched its inaugural round-up campaign in May 2022, the company has raised nearly $500,000 to fight hunger in Georgia and South Carolina.

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

CENEX HOMETOWN THROWDOWN TO AWARD $150,000

Group’s partnership with Oasis Fresh Foods Market to provide essential food resources to local residents. Since 2017, the Wills Group and its companies, including Dash In, Splash In ECO Car Wash and SMO Motor Fuels, have raised more than $2 million at the Blackie Wills Golf Classic in support of local and regional nonprofit organizations across the Mid-Atlantic region.

Learn more at www.conveniencecares.org.

5 Cenex launched Hometown Throwdown, its contest asking individuals and organizations to share what makes their hometown festival unique. The grand prize winner will be revealed in May 2024 and will receive $100,000 for their festival. The remaining two finalists will receive $25,000 each.

To date, Cenex has given more than a half a million dollars in grants to support local communities. These efforts have helped fund more than 80 community projects, including improving aging baseball fields, providing athletic workshops in schools, supporting local food shelters and more.

MAVERIK LAUNCHES CAMPAIGN WITH $250,000 CONTRIBUTION 4 Maverik kicked off its annual giving drive through two initiatives with Feeding America, the nation’s largest domestic hunger-relief organization. Maverik contributed $250,000 to Feeding America and will follow with its annual Round Up Your Change program, inviting customers to round up their in-store cash and credit transactions to the nearest dollar or more to support the Feeding America network of food banks. Maverik’s 2022 Round Up campaign raised more than $470,000 for Feeding America.

VOLTA OIL RAISES OVER $170,000 FOR ALZHEIMER’S ASSOCIATION 1 Volta Oil’s 12th annual Purple Pump-Up Campaign raised more than $170,000 for the Alzheimer’s Association of Massachusetts/New Hampshire chapter. Rapid Refill Convenience and Garrett’s Family Market stores spanning Massachusetts, New Hampshire and Rhode Island joined forces with the Alzheimer’s Association to increase awareness and raise funds.

The campaign has raised nearly $1.3 million dollars since it began a decade ago.

TRAVEL CENTERS OF AMERICA RAISES $156,000 2 Travel Centers of America raised $156,000 through its round up campaign to support the St. Christopher Truckers Development and Relief Fund.

The funds will support truck drivers who have had to take time off from driving due to injury or illness. Since 2010, TA has raised $3 million for the St. Christopher’s fund.

WILLS GROUP RAISES OVER $374,000 3 The Wills Group raised more than $374,000 at the seventh annual Blackie Wills Golf Classic held in Ellicott City, Maryland.

The money will support Wills

CASEY’S TEAMS UP WITH FARMERS 6 Casey’s Pizza and Illinois Farm Families (IFF) partnered during the month of October to promote local farm families. Casey’s pizzas throughout Illinois came with a flyer featuring 10 farm families representing a variety of Illinois family-owned crop and livestock operations. In addition to the flyer promotion, IFF and Casey’s celebrated National Pizza Month with a pizza giveaway at five grain elevators across the state. At each location, the groups gave away 96 Casey’s pizzas to drive home the message that 96% of Illinois farms are family owned.

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INSIDE WASHINGTON

Bringing Congress to Your Stores The NACS In Store program was back in full swing in 2023.

BY MARGARET HARDIN

2023 Key Figures

140

The number of NACS In Store local events held since 2015

34

The number of states the NACS In Store program has taken place in

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began with a new Congress, and with it came dozens of freshman legislators who were brand new to Capitol Hill. The NACS government relations team always meets with each freshman lawmaker in D.C. in order to introduce them to our industry, but one of the most effective ways to show off the convenience industry is through the NACS In Store program back in their home states or districts.

NACS In Store brings convenience retailers, members of Congress and their communities together by offering lawmakers the opportunity to gain firsthand knowledge of the industry and c-store operations. Since its inception in 2015, NACS has coordinated more than 140 In Store local events in 34 states across the country.

By bringing freshman lawmakers into their local c-stores to learn about the business and hear the industry’s stories, retailers and legislators can develop meaningful relationships that can last for years to come. After each In Store, lawmakers take all that they learned at the pump and behind the counter and bring the experiences with them back to Washington, D.C.

Freshman Congressman Mark Alford (MO-4) shared his experience with constituents via social media after his tour of BreakTime in Bolivar, Missouri. “I’m grateful for the work of the In Store program, which is building bridges between lawmakers, convenience stores, and local communities across the nation,” Alford said.

Rep. Mike Johnson (front row, red shirt) at a Y-Not Stop

Rep. Steve Scalise (left) at an On the Run

Leaders Behind the Counter With Mike Johnson winning the gavel and becoming the new speaker of the House of Representatives, all three of the top Republican leaders in the house have participated in the NACS In Store program.

Johnson visited a Y-Not Stop in Oakdale, Louisiana, in 2022, where NACS board member Annie Gauthier gave him a tour and helped him serve customers. Majority Leader Steve Scalise participated in the program in 2015 at a Lard Oil Company On the Run store.

Majority Whip Tom Emmer got behind the counter in 2018 at a Kwik Trip in St. Cloud, Minnesota.

Rep. Tom Emmer (white shirt) at a Kwik Trip

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INSIDE WASHINGTON

Retailers and legislators can develop meaningful relationships that can last for years.

Rep. Jasmine Crockett at a RaceTrac

Throughout the tour, lawmakers not only observe the ins and outs of running a convenience store, but also learn how policy decisions made in D.C. could affect the store, its employees and its customers. A big topic of focus this year has been swipe fees and the Credit Card Competition Act. If it is enacted, Visa and Mastercard would finally have to compete with other routing networks, which would lower the cost of the transaction and foster an environment for innovation and security.

During this year’s store tours, retailers took the opportunity to share just how much they pay in credit card swipe fees annually and how that number continues to jump year after year.

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Also discussed during each NACS In Store visit is the need for the private sector to be allowed to compete evenly in order to spur investment in and the development of the EV charging infrastructure across the country. And with over 114,000 convenience stores serving as authorized retailers in the Supplemental Nutrition Assistance Program, modernizing the program was also a hot topic of discussion.

Freshman Congresswoman Jasmine Crockett (TX-30) toured RaceTrac in Grand Prairie, Texas, and discussed the importance of legislation she is co-sponsoring, the Hot Foods Act, which would allow SNAP recipients to purchase hot foods with their benefits.

ONE VOICE This month, NACS talks to

Tony Battaglia, And the In Store program isn’t just for freshman Members of Congress. Oftentimes, lawmakers reach out to NACS directly and ask to set up a store tour because they heard from one of their colleagues how much fun they had making pizzas or ringing up customers from behind the counter.

Congresswoman Kat Cammack (FL-3) joked after touring RaceTrac in Ocala, Florida, “They’ll probably tell me I shouldn’t quit my day job, but I had a great time.”

Congressman Brad Finstad’s (MN-1) visit to Kwik Trip in La Crescent, Minnesota, made it onto the local news. In an interview, Finstad shared, “I just simply rely on what God gave me in the right proportions. That’s two ears and one mouth. So, I’m here to listen and learn, and as I go back to Washington and hear the policy conversations that are going on, I can reflect on what I’ve seen and heard here today.”

key accounts and industry development VP, on-the-go sales channels, Tropicana Brands Group What does NACS political engagement mean to you?

NACS political engagement means to actively participate in the political process to support the c-store industry, which includes activities such as voting, advocacy, activism and involvement in government policy. Being politically engaged means taking an active interest in the political issues and decisions that affect our industry and surrounding communities and actively participating in the democratic process to make positive change.

Being involved politically allows me to have a voice in the development of policies and laws that can impact my life, my career, my business and my customers’ business.

By engaging in advocacy, I can help shape the rules and regulations that govern business for the betterment of convenience store operators. Being engaged also allows me to stay more informed about political issues and candidates.

Through being informed, I can then better relate to c-store retailers’ challenges and needs and do my part to support them for the greater good.

What federal legislative or regulatory issues keep you up at night (with respect to the convenience store industry)?

Not passing the Credit Card Competition Act keeps me up at night. This legislation would help preserve small business owners’ freedom of choice between multiple credit card networks by injecting much-needed competition into the credit card processing market, allowing small business owners to choose the option that is best for their business.

Passing the Credit Card Competition Act would enhance credit card competition and choice in order to reduce excessive credit card fees and free up money for other important business needs.

What c-store product could you not live without?

As the sales and industry development lead for my company, Tropicana Brands Group, the c-store product I could not live without is Tropicana Orange Juice. And of course, fresh-brewed coffee. I travel in my car a lot, and I frequently stop at convenience stores in the morning and late at night for a cup of much-needed coffee and OJ to start my day and keep me going. Thank you, c-store operators, for always being there for me!

Rep. Kat Cammack at a RaceTrac NACS DECEMBER 2023 25

INSIDE WASHINGTON

NACSPAC DONORS NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac. NACSPAC donors who made contributions in October 2023 are:

The NACS In Store program continues to be one of the most powerful tools in the NACS advocacy toolbox.

Rep. Brad Finstad at a Kwik Trip

The NACS In Store program continues to be one of the most powerful tools in the NACS advocacy toolbox. If you’re interested in learning more about the In Store program or hosting your Member of Congress, reach out to Margaret Hardin, NACS manager of government relations, at mhardin@convenience.org.

Margaret Hardin is the NACS grassroots manager. She can be reached at mhardin@ convenience.org.

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Alok Advani SuckerPunch Rafay Ahmad NSR Petro Services LLC Denise Alderson Mr. Cartender Inc. Bhavesh Amin QuickStop Roger Audette Excel Tire Gauge LLC Ashley Baird Mr. Cartender Inc. Landon Bedford Pilot Travel Centers LLC Blake Benefiel Altria Group Distribution Company Gary Bevers Southwest Fuel Company Jeff Blalock Oberto Snacks Inc. Eric Blomgren NJ Gasoline C-Store Automotive Association Richard Bohnen Minnesota Service Station Association Damon Borden Alsaker Corp dba Broadway Brian Brehmer Ralphie’s Minnoco Peter Brennan New England Convenience Store & Energy Marketers Association David Brewster Royston Group Rick Brindle Mike Bunyak Nittany Oil Company dba Minitmart Jeff Burrell NACS

Craig Byerlee Excel Tire Gauge LLC Nancy Caldarola Concept Associates Inc. Lars Canedy 33 Degrees Convenience Connect Rakesh Chovatia SAASOA Noam Cohen KeyBanc Capital Markets David Corbett Matrix Capital Markets Group Inc. Tom Corcoran Winsight LLC John Davis Clark Oil Company Inc. Richard DeRose TSN-A Bunzl Company Henry Dodge Dodge’s Stores Joe Dondanville 33 Degrees Convenience Connect Sean Dooley Matrix Capital Markets Group Inc. Yousuf Dosani Atlanta Retailers Association Ben Englefield Englefield Inc. dba Duchess Shoppes Kevin Farley Impact 21 Chris Fitterer The Hub Convenience Stores Inc. Mike Flebotte Business Accelerator Team Nick Franco ThinkSys Inc. Tom Frawley Summit Distributing LLC

Tamra Gathright Florida Petroleum Marketers Association Brion Gillett Kretek International Ella Goetze Goetze’s Candy Company Inc. Mitchell Goetze Goetze’s Candy Company Inc. Mark Griffin Michigan Petroleum Association Joe Hamza Nouria Energy Corp.

Mark Hanner InComm Payments Steve Harrelson SAASOA Genna Heetland TruAge Verconia Helms SAASOA James Hendrickson Hendrickson Inc. Bill Henry Apter Industries Inc. Mark Hess 33 Degrees Convenience Connect Harvey Hicks Jordan Oil Co. Inc. Angela Holland Georgia Association of Convenience Stores Melanie Isbill RaceTrac Inc. Julie Jackowski Tom Jackowski John Jackson Jacksons Food Stores Inc. Anshul Jain ThinkSys Inc. Rajiv Jain ThinkSys Inc. Sharif Jamal Chestnut Market

David Jordan Jordan Oil Co. Inc. Jim Joy OPW, A Dover Company Eli Kai FLOW Matthew Kaplan Altria Group Distribution Company Frank Kasamali 6040 LLC Simmi Kelly Altria Group Distribution Company Rob Knight Independent Buyers’ Company LLC Myra Kressner Kressner Strategy Group Peter Krueger Nevada Petroleum Marketers & Convenience Store Association Matt Landen Chomps Jay Lee NACS Ron Leone Missouri Petroleum & Convenience Store Association Michael Lipton Lipton Inc. dba LiptonMart David MacDonald WT Group Crystal Maggelet Maverik Inc. Jim Maggiacomo Excel Tire Gauge LLC Pete Maldonado Chomps Nick Marino CORD Financial Services Missy Matthews Childers Oil Co. dba Double Kwik Tondra Matthews Florida Petroleum Marketers Association

Brian McCarthy Blarney Castle Oil Co. Bill McCloskey Rmarts LLC Michae McDade McDade Products LLC Brad McGuinness PDI Technologies Britany McPeters Alsaker Corp dba Broadway Matthew Meloy Chomps Eric Meyer Core-Mark International Johnny Milazzo Lard Oil Company Inc. Josh Milazzo Lard Oil Company Inc. Tony Miller Delek US Mario Mills Naughty Chile F. Scott Myers Altria Group Distribution Company Matt Nelson Excel Tire Gauge LLC Ashley Neutze Mr. Cartender Inc. Brian Neutze Mr. Cartender Inc. Christopher Neutze Mr. Cartender Inc. Dan Neutze Mr. Cartender Inc. Debbie Neutze Mr. Cartender Inc. Ethan Neutze Mr. Cartender Inc. James Neutze Mr. Cartender Inc. Kelsie Neutze Mr. Cartender Inc. Mabel Neutze Mr. Cartender Inc. Mariah Neutze Mr. Cartender Inc. Mike Neutze Mr. Cartender Inc.

William Neutze Mr. Cartender Inc. Thomas Newbould Impact 21 Corey Nicely Pilot Travel Centers LLC Alex Olympidis Family Express Corporation Richard Oneslager Balmar Management Group Chris Ott 33 Degrees Convenience Connect Kirk Owens SymphonyAI Retail Inc. Darcy Paluch Moyle Petroleum Company Bharat Patel SAASOA Bipin Patel Speedy Mart Development Inc. dba Speedy Mart Dhruv Patel Sai Aarya Inc. Harry Patel Sunset Market Hepin Patel Bobs2Go Mehul Patel Sunset Market Nimesh Patel Amrut LLC Piyush Patel Harry’s Pratik Patel Amrut LLC Premal Patel Harry’s Ralpesh Patel Univer-sale novelty Ramesh Patel Sunrise Market of Soddy-Daisy Risilkumar Patel Dhyan and Shalil llc Sandip Patel SAASOA Saurin Patel Harry’s

Seshendrea Patel SAASOA Sunny Patel RedBank Quick Stop Tana Patel Harry’s Vinodkumar Patel Shubham Convenience Stores Inc. Eden Pearson Casey’s General Stores Inc. George Penyak Smart Care Solutions Channing Phillips Naughty Chile Taqueria Duane Phillips Dandy Mini Marts Inc. Sean Piper CAF Inc. Richard Poye RaceTrac Inc. Sarah Pruner Pilot Travel Centers LLC Ryan Razowsky Rmarts LLC Donnie Rhoads The Convenience Group LLC Jennifer Rhoads The Convenience Group LLC Joe Roenna Core-Mark International Sam Russo MichaelAngelo’s & More Chuck Ryan Ambest Inc. Jose Santiago Liquid Barcodes Inc. Vance Saunders Matrix Capital Markets Group Inc. Ryan Scaife Nittany Oil Company dba Minitmart Kristen Seabrook Pilot Travel Centers LLC

Ryan Shaw McDade Products LLC Dave Simendinger Weso dba Champlain Farms Kevin Smartt TXB Stores Martin Smith Elmer Smith Oil Co. dba Domino CStores Melinda Smith Maverik Inc. Frank Squilla InComm Payments Nicholas St. Romain St. Romain Oil Company LLC Stephanie Stuckey Stuckey’s Corporation Alan Thiemann Han Santos Attorneys at Law JT Thomas iSee Store Innovations Jennifer Treasone Altria Group Distribution Company Nicholas Unkovic EG America LLC Jill Van Pelt RaceTrac Inc. Sanjay Vaswani Tustin Arco David Webb Altria Group Distribution Company Kurt Weigel Weigel’s Stores Inc. Joanna Wolf Florida Petroleum Marketers Association Doug Yawberry Weigel’s Stores Inc.

NACS DECEMBER 2023 27

IDEAS 2 GO

Name of company: Green Spot Year founded: 2008 # of stores: 1 Website: www.greenspotmarket.net

A C-Store Built on Being Green Green Spot blends natural food and beverages with convenience.

BY SARAH HAMAKER Green Spot prides itself on being an environmentally-friendly convenience store with natural foods and fuel, too. The goal is to “provide a convenience store for people who shop at Whole Foods,” said Adam Velte, store manager.

THE FOOD BASE Green Spot, which is located in Dallas, started with an emphasis on food. The store stocks healthy, organic and natural food and beverages, along with a small section of personal care items. Its coffee and espresso is sourced from two Texas-based roasters, Noble Coyote Coffee Roasters and White Rock Coffee. All the food served in its café is preservative free, with the meats locally sourced and all natural and the sauces made fresh in-house. The store has more than 300 beverage selections, from fountain drinks made with real cane sugar to six taps of kombucha.

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An extensive wine and beer collection varies by season, with several vegan and local wines and beers in the mix. “We sell more wine per square footage than many stores,” Velte said, giving credit to the excellent picks from their two wine vendors. A recent addition to the beverage selection is THC drinks through the store’s hemp license. “These have been selling like crazy,” he said.

Two frozen yogurt machines churn out six flavor options with one machine dedicated to vegan chocolate and vegan vanilla frozen yogurt. Snacks include baked goods and gluten-free products, while cleaning products are biodegradable and nontoxic.

In the beginning, the store partnered with a local catering company, Good to Go Taco, which leased the kitchen.

“The tacos became super popular, and we would have a line out the door for breakfast and lunch,” Velte said. After the Food Network featured Good to Go Taco, the owners opened up their own restaurant, leaving the Green Spot kitchen space available.

The c-store then hired a chef and created a new menu featuring breakfast and lunch tacos, burgers, hand-cut fries, Mexican-style dishes and steak and eggs. “We make our salsa in-house too, and stay busy for breakfast and lunch,” Velte said.

“Overall, our entire food and beverage philosophy has been to offer products that have been minimally processed and are as natural as possible,” he said. “Some customers turn around and leave” after they realize the store doesn’t carry a favorite product, “but most have been willing to explore our shelves, and they usually find something interesting to munch on.”

GREENING THE COMMUNITY Naturally, Green Spot offers more options for fueling vehicles beyond pumps for regular unleaded gas and diesel. “We have two Blink charging stations, one of the first gas stations in our area to offer a place for electric vehicles to charge,” Velte said.

The store does little marketing and promotion, preferring to interact with customers in-store or online via social media accounts on Facebook and Instagram. “We’ve also had quite a few news stories about us, I think because we’re unique in what we’re trying to do,” he said.

Part of the appeal beyond the environmentally friendly atmosphere and business model is the employees. “We try to make our workers feel a sense of belonging to this community and validated for their dedication and service,” Velte said. “Most have been with us two years or longer, and our kitchen staff has clocked a dozen years with us now, because we’re a very accommodating employer.”

For Velte, the best part of working for Green Spot is the customers. “We have some of the best customers we could ask for, and we want them to feel good about supporting a local business as well as enjoy the product or services purchased,” he said. “In return, they help to spread the word about our store to their friends and family.”

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

BRIGHT IDEAS Green Spot lives up to its name when it comes to its business practices. Most of its trash is recycled and all serveware is both eco-friendly and 100% decomposable. That philosophy extends into the kitchen, too. “Our kitchen scraps are composted while our fryer oil from the kitchen is converted to biodiesel,” said Adam Velte, manager of the Dallas store.

Green Spot also buys and sells as many products as possible packaged with 100% post-consumer recycled materials. “We also try to obtain products that use less packaging in general to reduce that type of waste,” he said.

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

To see videos of the c-stores we profiled in 2023 and earlier, go to www.convenience.org/Ideas2Go. NACS DECEMBER 2023 29

rs e l i a Ret on olds relyhnique tec d new y an nolog techo limit g. t liftin p sho

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BY SHANNON CARROLL

L

NinaM/Shutterstock

oss prevention experts say the best solution for retail crime would be to have a police officer stationed at every shelf in every convenience store in every city in every state. So what’s the next-best solution? Well, that too is complicated, but not impractical.

Shoplifting is up around the country. Some of the biggest stores and companies are citing retail theft as a massive threat to their profits. The c-store industry is hardly immune.

“Over the last 15 years, safety and security had become a secondary issue,” said industry consultant Rollie Trayte, who spent 14 years as the director of security and loss prevention for Circle K. “For the most part, convenience stores were relying on one- or two-decade-old technology and information.”

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Despite the growing threats, c-stores can immediately address security and crime concerns in a number of ways. Companies are also investing in national research on preventative and combative measures that could lead to better protection in the coming months and years.

“You have to use the resources that you can afford—or that you’re willing to afford,” Trayte said. “So I guess my attitude these days is, ‘Let’s get back to basics.’”

EASY STEPS YOU CAN TAKE—NOW The Federal Bureau of Investigation tracks crime in its Uniform Crime Report (UCR).

The latest UCR reported that robbery increased 1.3% across the U.S. in 2022, with convenience stores and gas stations combined experiencing 13.8% of all robberies.

Making sure your store is not a target starts with Crime Prevention Through Environmental Design, a multidisciplinary approach to crime prevention. Here is preventative guidance for convenience stores: • Effective lighting inside and outside.

• Replacing broken lights immediately.

• Keeping the store windows as clear as possible. The view from the register to the street should be open.

• Keeping window signs to a minimum and placing them below three feet and above six feet. Visibility inside the store should be clear as well. You should have a wide-open view from the register.

• Greeting your customers and letting them know you are aware of their presence in your store.

• Staying active and alert. Even when customers are not in your store, it is important for you to get out from behind the counter and stay busy. This helps discourage a potential robber.

Kelly Harrington, the director of asset protection at RaceTrac, said c-stores may not experience as much of the organized retail crime that some big-box stores are seeing, since a lot of c-store merchandise isn’t particularly resalable. While shoplifting in c-stores is occasionally perpetrated by organized individuals, it is more common among opportunists who plan to consume or use what they stole.

Babir Sultan, CEO of Fav Trip, is not shy about calling out shoplifters at his stores. He began posting videos of shoplifters to the FavTrip YouTube page that show the perpetrators in action. See the Ideas 2 Go video at www.convenience.org/FavTrip.

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Dontstop/Getty Images;

Spreading the Word

koosen/Shutterstock

“Everyday shoplifting is the cost of doing business,” he said. “It’s not something that’s very controllable.”

Harrington added, though, that properly trained c-stores employees can make the opportunity-driven type of thief aware that someone is watching.

“The best thing that you can do to control shoplifting is to make eye contact and let guests know that you see them, that you know what their intentions are,” Harrington said.

That means following the five-foot rule—a three-foot rule at some c-stores—where a store associate acknowledges any customer who is within that distance of the employee.

“I train people to think of every interaction they have as an interview,” he said. “And obviously you’re doing it with positivity, enthusiasm, and empathy and a smile. … And it is that connection point where you lock eyes and they know you acknowledge them. …The professional thief, they don’t care. They’re going to steal, but the opportunists might take that and say, ‘Hey, because this person is really paying attention to me, I’m going to move on and go somewhere else.’”

SOMEBODY’S WATCHING YOU Some convenience retailers are also seeing success with body cameras.

During an education session at the 2023 NACS Show titled “Securing the Retail Landscape: A Roundtable on Crime Prevention and Loss Mitigation,” Byron Coleman, who leads asset protection and security for Wawa, said the company executed a pilot program with body cams that has been “very successful” in reducing crime and increasing safety.

“Most people were glad to see that we were trying something,” Coleman said. “I think your customers realize that you’re dealing with a difficult situation, so they were appreciative that we would do something, whether that would be with technology or any of the other techniques that we have.”

Body cameras can be either overt or covert.

Wawa made sure cameras were easily identifiable and worn over employees’ yellow shirts.

Harrington agreed that noticeable is better.

“With body cams, not only is it an evidence-documentation tool, but the bigger effective component of a body camera is the

use at o t ve ces th a h You resour ford— the can af ’re u .” you hat yo fford a or t ing to will

physical deterrent presence of it,” Harrington said. “Having that camera on you is what’s going to change someone’s mind about how they act and how they behave in your stores.”

Read Hayes, the director of the Loss Prevention Research Council (LPRC) and the co-director of the Loss Prevention Research Team at the University of Florida, said having employees wear headsets can help, too.

“If you’ve got a two-way radio, we’ve found through research that offenders will pick up on that, especially if you have a mic in front of your mouth,” Hayes said. A potential shoplifter will think, “OK, wait a minute, I’m not just dealing with this person, I’m dealing with everybody.’”

Both Hayes and Trayte said obvious cameras in and around the store are—and always will be—key.

A large, high-resolution color camera at the point of entry signals a clear impression of control. That tells someone their face has been recorded—and in high-definition.

The LPRC often asks if potential offenders will “see, get and fear” a store’s security measures in a way that makes it clear shoplifting at that store is a bad idea.

Hayes said the cameras should not be looking in different directions or pointed at the ground. Cameras are especially important in dark nooks and crannies that can’t be seen by a clerk at the register. He added that a “clear perception and impression of control” is crucial. That means at every phase of a customer’s visit, the store is seen as competent and aware.

Harrington noted that RaceTrac focuses on simple things like making sure there is a high level of overall store cleanliness and that shelves are kept stocked and organized. He NACS DECEMBER 2023 33

said “appearance and conditions” is a c-store’s second line of defense against shoplifters. If the center store aisles are tidy with products front facing, it might be easier to spot when merchandise is missing.

“Psychologically speaking, shoplifters and criminals tend to do bad activity where there’s disarray and disorder, because it feels like they’re more likely to get away with the crime they’re about to commit,” he said.

GET LAW ENFORCEMENT WORKING WITH YOU Collaborating with local law enforcement is vital, according to the loss prevention experts interviewed for this story.

Harrington said establishing a good relationship with law enforcement is one of the first things that should happen with a c-store.

RaceTrac often fulfills video evidence requests for local police; the video is often of activity caught in a store’s parking lot, in cases where helping the police doesn’t directly benefit the c-store. Harrington explained, “The long-term impact of that was we had detectives on speed dial when something goes haywire.”

He added, “When you have law enforcement frequenting your store, there’s a lot of good side effects that come along with that.”

At the retail crime roundtable at the NACS Show, Britt Davidson, director of risk at Maverik, said it’s also important to reach out to community organizations that can help with

mental health crises and who have resources to help the transient community so that the company can mitigate loss without hurting individuals who need help.

“The one thing that’s very difficult with this is there’s no silver bullet. There’s no one thing that’s going to work in every single place,” Davidson said.

AI’S POTENTIAL Numerous research projects are searching for longer-term solutions to the complex crime issue.

The LPRC has a high-tech lab inside the University of Florida’s Innovate Hub full of sensor platforms. The LPRC uses virtual reality, augmented reality and extended reality technology to simulate different environments, including c-stores.

There are potential applications for artificial intelligence (AI), like analyzing video data to look for patterns of behavior that point to theft. AI can analyze the license plates of people coming into the store and note who has previous shoplifting charges or instances of violent behavior. It can also learn to detect suspicious body language and behavior and flag it in real time.

“What AI is doing is finding things that we might not,” Hayes said, because watching hours of footage can be “dull, dangerous, disgusting, whatever” for a person.

Companies are experimenting with radio frequency identification (RFID) tags that can be attached to items in an undetectable way and that are only deactivated at checkout. Someone trying to walk out the door with an item that hasn’t been paid for will trigger an alarm.

There are still some kinks to work out. While the RFID chips keep getting smaller and cheaper, it would be cost prohibitive to put one on every piece of bubblegum.

There have also been issues with putting the chips on metal and having them next to liquid in freezers.

But Read Hayes, the director of the Loss Prevention Research Council, said that as the technology spreads costs will drop and RFID chips will be more accessible.

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pedrosala/Getty Images

Tag, You’re It

BEST IMPRESSIONS FROM FLOORS TO FORECOURTS AND MORE

DUNNAGE RACKS

DISPLAYS & MERCHANDISERS

FORECOURTS & FUEL ISLANDS

masonways.com • newpig.com 365121

FLOOR SAFETY

LOSS PREVENTION, NOT SALES PREVENTION AI and other security measures do have one crucial constraint: They can’t turn the customer off your store.

36 DECEMBER 2023 convenience.org

A LONG ROAD AHEAD Harrington said he thinks the c-store industry is making strides—but still has a distance to go.

“Until you remove the physical accessibility of the product, shoplifting will always happen,” he said. “So it’s a balance of finding the right tech and experience-driven solution process, but I think we’re still a ways out from figuring that out.”

Regardless, Trayte said c-stores should have and implement a strategy.

“Companies have to get back on the safety and security bandwagon,” Trayte said. “Hope is not a strategy.”

Shannon Carroll is a contract writer/editor for NACS.

AlexLMX/Getty Images

He acknowledged the myriad privacy concerns that arise with the use of AI, but Hayes said that “it’s not Big Brother, it’s Big Protection.”

While studies show AI can have implicit biases, Hayes said most of what’s being analyzed is happening in public. In essence, people are exchanging a very small amount of their privacy for safety.

To protect privacy and avoid the biases that have occurred with facial recognition, Standard AI’s solution turns everyone who walks into the store into a stick figure with a specific color signature that lets the figure be monitored as the person moves through the store. If the company’s AI spots a problem, it notifies a team member.

Alex Plant, vice president of marketing at Standard AI, said he expected to hear about privacy concerns but hasn’t. “[People are] much more amenable to using technology to improve the way that we shop or live or drive,” he said.

While its AI currently focuses on the cigarette and alcohol zones, Plant said Standard AI will be working to extend its capabilities to cover the whole store. “I think there’s a tangible benefit of less shrink, but also maybe more a psychological one here where people will know that there are technologies that are tracking them, that are watching their movements,” he said.

Harrington said RaceTrac is looking to embrace more technology such as AI, but he’s not sure whether the technology is there yet to be 100% effective because of how dynamic a c-store environment is.

If your store’s security measures are too extreme, you could be suggesting to a customer that your store isn’t safe. And that might make them not want to shop there.

If a customer has to wait by a locked cabinet for an employee’s help, that isn’t convenient, and security cameras everywhere can seem dystopian. And loss prevention and security officers can convey a certain message.

“You never want to be called the sales prevention team, right?” Harrington said. “So with every merchandise protection strategy, there has to be tremendous cost-benefit analysis. Are you suppressing sales more than you are preventing loss?”

He said it might not be worth it to put a number of items behind locked plexiglass.

“When you think about the price points of convenience store items, there is not much in a store that you want to lock up because it’s going to cause more of a guest experience detriment than it’s going to save you,” Harrington said.

Trayte said customers are becoming more accustomed to security measures in a store.

Someone checking receipts has become more normal, as are cameras that say “Recording in Process.” Stores can help create a positive environment by posting signs with messaging like “We care about keeping you safe” or “If you see something, report it” to make it clear shoppers’ safety is paramount.

Harm Red trancedrumer/Shutterstock

The future of the backbar … or regulated out of existence?

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uction in 2024 and Beyond

Gilmanshin/Shutterstock

BY MELISSA VONDER HAAR

H

arm reduction is the idea that public health policies should be created to lessen the negative consequences of human behavior as opposed to eradicating the behavior entirely. Examples in the public health space include safe injection sites or methadone prescriptions for drug users—even wearing a helmet while riding a bike.

Tobacco harm reduction operates similarly, acknowledging that many adult smokers may not be willing to stop using tobacco products entirely but would shift to less harmful alternatives. It’s a concept that has gained popularity with consumers, tobacco manufacturers and even some regulators and public health advocates over the past decade as new innovations in non-combustible products like electronic nicotine devices and spitless tobacco options have come onto the market.

NACS DECEMBER 2023 39

PROMISE OF TOBACCO HARM REDUCTION Gregory Conley, director of legislative and external affairs for the American Vapor Manufacturers Association Inc., said he could provide anecdotes about the willingness of adult smokers to try smoke-free options, but data from the Centers for Disease Control and Prevention (CDC) and other government agencies make the best case. “Really, you should look at the results,” he said.

CDC data shows that in 2015, 68% of adult smokers reported wanting to quit cigarettes.

But success rates are low: In 2018, just 7.5% of the 55% of adult smokers who attempted 40 DECEMBER 2023 convenience.org

These products give adult smokers the opportunity to switch to a lessharmful option rather than quit entirely.

to quit succeeded in doing so. The CDC noted that less than one-third of those smokers reported using cessation counseling or FDA-approved nicotine replacement therapies like nicotine patches or gum.

That’s where tobacco harm reduction comes in. These products give adult smokers the opportunity to switch to a less-harmful option rather than quit entirely.

Conley described vaping products as “central” to this switch. The 2022 National Health Institute Study showed that 41% of the 6.1 million vapers in the U.S. were former smokers.

“E-vapor has been the most successful category in the U.S. in transitioning smokers to alternative products,” said Jennifer Kelly, a spokesperson for Altria Group Distribution Company.

The problem is that in the United States, products like e-cigarettes or newer smokeless options like modern oral nicotine are not acknowledged by the FDA as—and therefore cannot be marketed as—less harmful than cigarettes. Other countries, however, have embraced this approach.

“In recent years, e-cigarettes have become a very popular stop smoking aid in the UK,” reads the National Health Service (the United Kingdom’s government healthcare system) website. “They’re far less harmful than cigarettes and can help you quit smoking for good.”

Meanwhile, the only way tobacco products can be marketed as less harmful than cigarettes in the United States is through the modified risk tobacco product (MRTP) pathway. To date, the FDA has denied MRTP status for electronic cigarette and vaping products and has only approved it for one snuff product, eight snus products, several heat-not-burn options that are currently unavailable in the United States and two low-nicotine cigarette products.

REGULATORY HURDLES Instead of taking a strategy closer to the UK’s, the FDA has taken many actions that advocates of a harm reduction approach argue have challenged the success of smoke-free products.

Particularly when it comes to flavors.

Bulgn/Shutterstock

“It’s the delivery mechanism” that causes harm, not nicotine itself, former FDA Center for Tobacco Products (CTP) director Mitch Zeller said while speaking at an American Legacy Foundation function in 2014. “We have to recognize some of these realities and figure out how they can impact regulatory policy.”

But the National Institute of Health (NIH) noted in a research paper that harm reduction “remains a controversial topic in tobacco control.” The NIH specifically called out marketing practices in the 1960s around low-tar or “light” cigarettes as a cause for doubt around tobacco harm reduction. The attention on youth vaping usage in 2019 only heightened the controversy.

Despite director Zeller’s seemingly supportive comments, the FDA has yet to acknowledge any vaping device as “modified risk” (the official pathway for marketing tobacco products as less harmful than cigarettes). Instead, the agency has banned flavors in electronic nicotine devices, removing a major incentive for smokers to switch. State and local governments have passed even more extreme regulations that, in some parts of the U.S., have all but stamped out the market for non-combustibles.

Yet consumer interest in harm reduction remains strong, as does the commitment of major tobacco and nicotine manufacturers to invest in this space. This begs the question: What is the future of harm reduction in the backbar?

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Then there are state and local governments that have taken the regulations even further.

Jigar Patel, CEO of FASTIME and vice president of the Strategic Alliance of Affiliated Store Owners of America (SAASOA), described being contacted about what seemed to be brand of disposable e-cigarettes he was already selling. He was given the opportunity to get a much lower rate than his wholesaler charged if he bought directly from the manufacturer. He later discovered what was being offered “directly” was in fact a fake.

“My eyes were opened,” Patel said. “This could actually hurt somebody.”

Then there are state and local governments that have taken the regulations even further.

Peter Brennan, executive director for the New England Convenience Store & Energy Marketers Association (NECSEMA), pointed to Massachusetts. The state didn’t just ban flavored vaping products in 2020: it was the first state to ban all flavored nicotine products, including menthol, including snus, including modern oral nicotine.

“Since then, we’ve have lost approximately $337 million in tax revenues,” Brennan said.

“The black market’s thriving.”

Taxes are another form of regulation that makes it less appealing for smokers to switch to a non-combustible alternative. For example, in Minnesota, vaping products and modern oral nicotine are taxed at a record-high 95% of their wholesale price. That’s the exact same rate the state taxes combustible cigars.

Piskova Photo/Shutterstock

Responding to rising rates of youth vaping, the FDA issued an enforcement policy in January 2020 to limit the sale of cartridge or pod vaping products to only tobacco and menthol flavors unless the agency approved a flavored product through the premarket tobacco product application (PMTA) process. To date, the FDA has only approved tobacco-flavored vaping product PMTAs. “While policing youth access is important, these regulations often overlook the potential public health benefits of transitioning adult smokers away from combustible cigarettes,” said Conley. “Flavor bans in particular undermine the appeal of safer alternatives. Flavors offer adult smokers a more appealing and satisfying alternative to the taste of traditional tobacco, increasing the likelihood of them making a permanent switch.”

As most retailers and consumers know, the market is filled with flavored disposable e-cigarettes (both those using traditional nicotine and synthetic nicotine). The question is what, if any, are legally allowed to be there under FDA purview.

“The largest challenge to the future of these innovative nicotine product categories is the proliferation of largely illegal disposable vapor products pouring across our borders,” said Matt Domingo, senior director of external relations at R.J. Reynolds Tobacco Company.

Domingo described illegal disposable products as being those without either a marketing granted order or a pending PMTA application with the FDA or those that market to kids. “These illicit vapor product manufacturers are flouting FDA regulations,” he said.

Because of the lack of clarity of what is and isn’t legal—and a near-total lack of enforcement—retailers aren’t just dealing with products not allowed by FDA but products that are outright counterfeits.

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Major manufacturers have expressed a firm commitment to harm reduction.

“Transformation is at the core of Reynolds and its operating companies,” said Domingo. “We are making significant investments in innovative non-combustible nicotine products and engaging with stakeholders and policymakers to develop a regulatory environment that supports and promotes tobacco harm reduction.”

Altria’s vision “is to responsibly lead the transition of adult smokers to a smoke-free future,” said Kelly, referencing Altria’s commitment to “moving beyond smoking” and the company’s recent acquisition of the NJOY vapor brand.

Reynolds and Altria are hardly alone: ITG Brands, Swedish Match, Swisher, JTI, Philip Morris International and more have all invested heavily in non-combustible products.

Retailers are caught in a tougher spot.

Consumer demand may be there, and manufacturer support certainly is, but how much space in a crowded backbar can retailers spare if the local and federal regulations don’t support harm reduction but instead outright stymie its success?

“As combustibles are further criminalized, people are going to turn to other products.

We want to be there to fill those needs,” said Brennan. “But it’s tough how much shelf space you can give to these products in such an uncertain regulatory environment.”

It’s a question that remains to be answered.

“Given the current regulatory landscape,” said Conley, “uncertainty is all that is guaranteed in the tobacco harm reduction space.”

Melissa Vonder Haar is the marketing director for iSEE Store Innovations. Follow her on Twitter at @iSeeMelissaV.

DFAagaard/Shutterstock

CURRENT STATES OF HARM REDUCTION Despite the regulatory challenges, these alternatives are managing to survive and even thrive thanks to polyusage and an increase in adult smokers moving to other forms of nicotine, said Domingo. “Non-combustible nicotine products are the fastest growing products in the nicotine space.”

Not surprisingly, the success of harm reduction products often comes down to the state (or city) in which a retailer operates.

Lonnie McQuirter, director of operations for 36 Lyn Refuel Station, operates in the regulatory-heavy city of Minneapolis. Due to the combination of the high excise taxes and a law that bans flavors in convenience stores but permits flavors in adult-only locations like tobacco shops and liquor stores, the vaping market is “virtually non-existent for convenience retailers without a separate adult-only store inside.”

Patel, on the other hand, operates in the more regulatory-friendly southeastern United States, as do most of the retailers that make up SAASOA. “For us, the vape category is actually growing,” he said, noting that SAASOA represents retailers in 13 states with 5,000 stores, and not a one has complained about a reduction in vapor sales. “It’s quite profitable and it’s helping compensate for the loss of margins in other categories, namely cigarettes.”

How modern oral nicotine or nicotine pouches—another popular harm reduction option—are doing also seems to depend on the region, the store or even the customer. Brennan described it as an exciting and growing segment, making up as much as 8% of backbar sales for retailers in New England. Patel said these products were “hit or miss” based on any given store. “I think the demographics where people are able to spend more money, it’s doing better there.”

Whether it’s electronic nicotine devices, nicotine pouches or new innovations in non-combustible options, major manufacturers have expressed a firm commitment to harm reduction.

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Right Timefor a T he

Beer Reset Beer category dynamics highlight the importance of ongoing cooler resets and space allocation.

R

ecent disruption in brand and subcategory dynamics within the beer category has placed a bigger spotlight on the importance of up-to-date shelf sets. As a result, convenience retailers are focusing on their assortment and space allocations within cold boxes to ensure offerings reflect current consumer demand and brand trends.

To help determine the right reset for smaller retail formats like convenience stores, some beer suppliers are encouraging c-store operators to look ahead for projected trends.

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Dimitri Otis/Gettty Images;

BY TERRI ALLAN

NACS DECEMBER 2023 47

LoveTheWind/Getty Images

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“Retailers today are constantly having to put the pieces of a

jigsaw puzzle together.”

David Garcia, national accounts vice president, convenience, at Molson Coors Beverage Co., added, “It’s imperative that spring 2024 resets address the latest trends to ensure we’re ready to maximize category performance next summer.”

SPACE RIGHT-SIZING Stop & Go, with 66 stores in Ohio and Michigan, revises its beer sets in both the spring and fall. This year’s fall reset, implemented in September, was a four-week process, according to Neal Frandsen, vice president of marketing. Among the changes put in place was increased space for the surging Modelo Especial brand.

“I believe it will be our strongest fall in the last five years,” Frandsen said in early September. “We’re now stocking a fuller line of products while similar in pricing to grocery.”

Beer suppliers note that regular cold box resets go a long way in helping retailers react to changing consumer demands and ultimately drive larger purchases. “One of the main benefits is avoiding out of stock on brands by ensuring that there’s enough supply to cover delivery and service schedules,” remarked George Ward, national director, off-premise, e-commerce, and category/shopper insights at Boston Beer Co. Darryl Koenig, director of national accounts at Yuengling, added that the biggest goal of a reset is to “right size the space based on the current performances of the marketplace so that retailers have the right availability of in-stock products. A c-store has a limited amount of space, so operators must ensure they have the right assortment and the right pack out.”

But Koenig concedes that beer resets can be tricky for c-stores, particularly these days when trends change at a frenzied pace. “The challenge is to always look at what’s coming so you’re ahead of it,” he explained. “If you only do resets once a year, you have to meet consumers where they’re headed. But if you’re only setting your shelves based on last summer’s trends, you’re meeting them where they were.”

alenkadr Getty Images; Korovin/Getty Images

“We view the cooler as our most important reset of the year,” remarked Eric Patterson, chief merchandising and marketing officer at Beacon & Bridge Market, which operates about two dozen c-stores in Michigan.

The chain implements a cooler reset every spring, with “minor tweaks” made in the fall.

“With the cold box accounting for 36% of our business, the cooler reset is at the top of our priority list every year,” he said.

Other leading c-stores and beer suppliers confirm that with a reshuffling among major beer brands this year, along with subcategory shifts, many beer coolers are being “tweaked,” and more substantial changes are likely for spring resets.

“Every year we do two resets in beer—a larger spring assortment review and a mid-tominor tweak in the fall,” said Jon Manuyag, director of marketing at Oregon’s Plaid Pantry, with 107 stores. “The fall reset is typically used as an indicator of how new packages that were introduced in the spring are performing and if they warrant an expansion.”

Similarly, California’s Rotten Robbie chain implements a “semi reset” in the fall and a major cooler realignment in the first quarter, according to Jodi Leibowitz, category manager. Adjustments made in the autumn typically include “bringing in more flavors, such as seasonal craft brews,” she explained.

Patterson also makes room for new “ancillary” brands as part of Beacon & Bridge’s fall pull-and-plug reset, such as the recent addition of beers from Ohio craft brewery Rhinegeist. “I prefer to wait until after the NACS Show to identify our focus items for the spring reset,” he explained. “We start planning our spring reset in November.”

Charlie Trepcos, executive sales director at D.G. Yuengling & Son brewery, said that because cooler resets require a lot of manpower to plan and implement, most c-stores will reserve the practice for next spring, just before the big beer sales season, while any recent fall tweaks were made to ensure that stores have “enough supply of the brands that are growing and to address some of the challenges of other brands.”

‘TIS THE SEASON FOR SPIRITS The holidays are about gifts and get-togethers with friends and family.

In other words, one of the most wonderful times of the year for Spirits.

So keep your shelves stacked with brands like Smirnoff, Captain Morgan, Bulleit, Don Julio, Crown Royal, and Crown Royal RTDs. These iconic brands will help make you the go-to destination for shoppers looking to create special holiday moments with great cocktails.

For more information, please reach out to your local Diageo Distributor.

Please Drink Responsibly, Diageo, New York, NY

NEW NO. 1 This year Modelo emerged as the top-selling beer in the United States, and retailers are making more space for the Mexican brew.

Bill Newlands, CEO of importer Constellation Brands, told beverage analysts in October that the company expects to see “a strong [spring] reset period. Retailers recognize where the growth and velocity are coming from and that will work strongly to our advantage as those resets occur.”

Jenny Odom, vice president, national accounts, at Constellation, added that Modelo “has shown impressive double-digit growth for 38 years,” and is the top c-store brand.

Beer singles, a key traffic and profit driver for c-stores, should also figure largely in cold box resets. Singles deliver some 67% of beer unit sales in c-stores, according to Molson Coors’ Garcia, and 27% of the dollar sales.

“Allocating about 34% of space to singles will maximize category performance,” he noted, while assortment must be balanced across subcategories.

Bump Williams, president and CEO of Bump Williams Consulting, which advises suppliers, wholesalers and retailers, agreed, noting that “single-serve profit margins are a lot higher than multipacks.”

MAKE ROOM FOR NEW PLAYERS In recent years, beer alternatives such as hard seltzers have carved out space in c-store coolers, and retailers report that like beer, sales velocity and trends for those products need to be monitored and space adjusted accordingly.

“Seltzer space continues to right size and brands outside of White Claw and Truly are being looked at for space performance to make room for other growing categories,” said Manuyag. He pointed to a “big surge” in flavored malt beverages of late, including the entry of “hard” versions of non-alcoholic beverages such as Mountain Dew, Arizona iced tea and Monster.

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34%

of space to singles will maximize category performance.”

Frandsen and Patterson both reported that their stores have cut in more space for spirits-based RTDs. But already at Beacon & Bridge, “We’ve found that a couple of brands are the clear winners,” Patterson said, adding that the chain will likely cut back on some offerings in 2024.

Still, c-stores must highlight new innovation and brands in the beer space. “Retailers today are constantly having to put the pieces of a jigsaw puzzle together,” remarked Yuengling’s Trepcos. “A reset gives them the opportunity to address new items and segments.”

While Garcia concedes that a high failure rate often comes with innovation, he said the right new products can help deliver category growth.

To test new products, Stop & Go gives each of its beer distributors eight feet of warm beer space in each store to use as a “playground for innovation,” Frandsen reported.

After six months, brands that perform well often win a spot in the cold box.

FOLLOW THE DATA Whether it’s new brands or old standbys, beer offerings must be actively monitored to ensure they deserve space in the cooler, suppliers and experts said.

“Don’t get complacent and stay with what worked last year because the landscape has most definitely changed,” remarked Williams. He and Garcia advise c-stores to rely on sales data for recent and emerging trends to warrant the appropriate inventory, reduce out of stocks and drive overall beer sales.

“We encourage retailers to focus on what is driving volume and category growth in their stores, build holding power for high-growth brands and offer the right selection to meet evolving consumer needs,” added Odom.

Trepcos couldn’t agree more. “We’ve never seen such changes in the beer business as we’re seeing now,” he said. “Retailers have to be cognizant of those changes.”

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

ValentynVolkovGetty Images; Korovin/Getty Images

In recent years, for example, some retailers over-indexed on subcategories like craft beer and hard seltzers, only to find that high demand for the products one year was followed by a softening the next.

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One possible solution to the labor shortage: People who are retired but want to come back into the workforce.

52 DECEMBER 2023 convenience.org

The O Case for Older Workers

BY STEPHENIE OVERMAN

FG Trade/Getty Images

lder people make valuable employees. And they often want—or need—to be in the workplace. Companies who hope to hire these workers must make sure their recruitment, training and benefit programs aren’t standing in the way.

The population of Americans 65 and older was 55.7 million in 2020, representing more than one in every six Americans, according to “2021 Profile of Older Americans,” a report prepared by the U.S. Department of Health and Human Services.

Many of these older people are strongly motivated to work— because they need to. One in five retirees say they are likely to return to work this year, according to a ResumeBuilder.com survey of retirees updated in January. When asked why they are considering unretiring, the most common answer given was to combat rising costs of living.

But older people often face resistance when they seek to remain in, or reenter, the workforce. One in five adults 50 or older say they have experienced discrimination since turning 40, according to an AARP report.

NACS DECEMBER 2023 53

54 DECEMBER 2023 convenience.org

REASONABLE ACCOMMODATIONS Another common stereotype of older workers is that they are less healthy and less productive than their younger counterparts. Becca Levy, author of “Breaking the Age Code: How Your Age Beliefs Determine How Long and Well You Live” disagrees: “Older workers take fewer days off from sickness, benefit from experience, have strong work ethics and are often innovative.”

But frontline retail work is physically demanding, and older employees sometimes do ask for accommodations.

Since the advent of the Americans with Disabilities Act of 1990, allowing employees to be seated while performing their duties has been a commonly requested accommodation, according to Edward F. Harold, an attorney with Fisher Phillips in New Orleans.

Seated cashiers are the norm in European supermarkets, but rare in the United States.

“The accommodation generally arises in the situation of a cashier who may be behind a cash register for periods of time where they are not actually serving a customer. In such situations, courts have generally held that where a cashier has no need to stand, the employer must allow the opportunity for the employee to sit down,” according to Harold.

California law requires employers to allow cashiers to be seated whenever they are not waiting on a customer as long as they have no other duties.

ATTRACTIVE BENEFITS What kind of benefits can companies offer to help recruit and retain older workers? According to “The Rise of Age-Friendly Jobs— And What Employers Need to Know,” an article from Massachusetts Institute of Technology, “Older people want jobs with greater autonomy (as measured by the ability to set

AaronAmat/Shutterstock

Seated cashiers are the norm in European supermarkets.

LEARNING NEW SKILLS A charge sometimes leveled against older workers is that they are reluctant or unable to learn new skills. However, a recent Human Flourishing Lab-Harris Poll found that 78% of all respondents were interested in learning new technologies; that included 69% of Baby Boomers. More than 80% of each generation agreed that it is essential to keep an open mind about new technologies.

When older people reentering the workforce need to learn specific frontline retail-related skills, the National Retail Federation Foundation has an answer—its RISE Up training program.

Both companies and individuals can purchase the program, which provides about 14 hours of online education, according to Adam Lukoskie, executive director of the foundation.

Paper-based and hybrid training also is available and is offered in a number of languages.

Lukoskie pointed to the example of a recently named Partner of the Year—a retired person “who wanted to stay active and engaged and help people and earn extra money.”

With the help of RISE Up, she transitioned to a self-checkout position after previously working in the mortgage industry.

PixelsEffect/Getty Images

their own schedule or work alone) as well as jobs that involve moderate physical activity or more sitting. They prioritize scheduling flexibility, even if it means less money. They also want shorter commutes or the option for remote work, less demanding cognitive and physical work, and reduced job stress.”

Scheduling flexibility is especially important, according to the Deloitte report “Redesigning Work for Our Aging Workforce,” because many workers also are acting as a caregiver for a loved one or are dealing with their own disability.

While many organizations recognize that flexibility is important to relieve the pressure of heath appointments and caregiving responsibility, “few have acted to set policies in place,” the report said.

Craig Copeland, director of health benefits research for the Employee Benefit Research Institute, stresses the importance of offering older workers flexibility when it comes to benefits.

He advises employers to look carefully at the offerings in their benefit plan. While younger workers may be interested in options that help with student loan debt, tuition reimbursement

and adoption assistance, those benefits aren’t likely to appeal to older workers.

The best approach usually is to offer some type of cafeteria plan, an employee benefit plan that allows staff to choose from a variety of pretax benefits. Popular options include health savings accounts (HSA), flexible spending accounts (FSA) and dependent care assistance plans (DCAP).

Letting each employee select benefits that most meet his or her needs “is a good selling point,” said Copeland. It’s important that whatever benefits are offered are communicated to potential employees.

For older workers, the most sought-after benefits typically are those that are not covered

by Medicare, such as eye and dental benefits.

Group policies such as long-term care may be of interest, Copeland said. Employers may require employees to pay for such benefits, but having a group rate can help employees keep their costs lower.

Even if an employee still has access to private insurance, some medical practices don’t accept Medicare and the opportunity to continue to see familiar doctors can be considered a benefit, he added.

The most sought-after benefits typically are those that are not covered by Medicare.

NACS DECEMBER 2023 55

I’ve heard time and time again: The senior community is hard working.”

LEGISLATIVE SOLUTIONS The Critical Labor Coalition (CLC), which includes NACS, works to address U.S. labor shortages by finding “legislative solutions that focus on the needs of different demographics,” said Executive Director Misty Chally.

The first group the coalition has looked at, according to Chally, is “the senior community. Now, as inflation increases, people are squeezed. It’s incentivizing them to return to work.”

The Critical Labor Coalition is partnering with AARP, the Coalition of Franchisee Associations and Golden State Opportunity to focus on effective tax-related strategies.

The groups propose expanding the Earned Income Tax Credit (EITC), created in 1975 to support low-income workers, particularly those with children, by reducing the impact of federal payroll and income taxes. In 2018 credit was claimed on 1 in 6 federal income tax returns.

During Covid, expansions to the program included some older workers, but that expansion expired end of 2021.

A permanent expansion of EITC would incentivize retirees to enter or reenter the workforce. “If passed into law, this proposal would benefit over two million aged 64 and older,” according to the CLC. It would benefit employers too, Chally said.

“I’ve heard time and time again: The senior community is hard working. Employers are excited to get them back into the workforce.”

AGING CUSTOMERS The authors of the Deloitte paper offer one more incentive for employers to seek out and support older workers.

“The population is aging not only in workplaces, but also in the market generally—and those older individuals tend to have a lot of spending power,” they note. In the United States, “People aged 50+ spent more than $5.6 trillion in 2015—well above the $4.9 trillion spent by those under age 50, and accounting for nearly half of the country’s GDP for that year.”

“By maintaining representation of this customer base within the workforce, an organization can improve its ability to engage with and even create new products and services for older buyers,” they wrote. “As the saying goes, ‘nothing about us, without us;’ in other words, to serve a population well, it’s best to have members of that population involved.”

Stephenie Overman is a freelance writer who specializes in workplace issues.

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eggeeggjiew/Getty Images

Finally, Copeland says, don’t forget about 401(k) plans. These can be a great incentive to older workers, because a key reason for working past age 65 is a lack of retirement savings.

2023 Convenience Voices Data

FIRST LOOK

Annual survey reveals insights on holiday travel plans.

BY EMMA TAINTER

Your customer lives in a world of choice.

Convenience Voices surveys are designed to capture customer experiences, develop a deeper understanding of customers’ motivations and choices and activate shopper behavior against data.

Contact Leroy Kelsey at lkelsey@ convenience.org or scan the QR code for more information.

58 DECEMBER 2023 convenience.org

Roman Samborskyi/Shutterstock

E

very July, NACS Convenience Voices begins surveying convenience store customers nationwide.

By the end of the summer, NACS collects over 10,000 surveys.

Customers are surveyed using a geofenced mobile intercept system that captures customer feedback right as customers make those crucial in-store decisions, or during what Leroy Kelsey, research director at NACS and director of Convenience Voices, refers to as the “retail moment of truth.”

For Kelsey, the summer is the most exciting part of the year.

“We work with both suppliers and retailers to create personalized Convenience Voices surveys,” said Kelsey. Once survey fielding is complete and preliminary data is finalized, Kelsey starts to share the findings, noting that “no two companies are the same, and therefore no two presentations are the same.”

Convenience Voices participants choose several of their own questions—and for many, the outlook for this holiday season is top of mind. Travel during the holiday season is second only to summer road trip season, and so it’s a critical time for convenience stores to capture customers.

While Convenience Voices doesn’t yet have a crystal ball, survey answers reveal what retailers need to know about holiday travel and the overall prognosis for the remainder of the year.

According to data gathered between July and September, over the next six months, 36.1% of people plan to visit convenience stores more often than they currently do, while 66.4% of shoppers plan to travel over the holidays (October through January), with one in three planning to travel in December.

Are you planning to travel for the holidays this year during any of the following month(s)?

Region 1, Northeast

Region 5, Central

35.0%

Region 6, West

Region 3, Midwest

21.0% Region 2, Southeast

14.6% Region 4, South Central

10.1%

.

October

November

December

January

Compared to my current visits, in the next six months, I expect to visit convenience stores...

2.6% 36.1%

96%

Will Visit More or the Same Next 6 Months

60.2% Less

Same

More

THE REGIONAL BREAKDOWN The Northeast, NACS Region 1, saw the biggest increase in shoppers planning to travel with a year-overyear growth of 4.4 points. Those in the Northeast seem to be eyeing trips to warmer climates during the peak holiday travel season, and 33.2% said they planned to visit convenience stores more often in the next six months.

Responses indicated that residents of the Southeast, Region 2, will be traveling less (by -3.3 pts) this holiday season, but that doesn’t mean retailers won’t see them in stores; 39.90% of Southeastern respondents shared they plan to visit convenience stores more often than they currently do.

Midwesterners’ convenience store routines are likely to stay in place.

Respondents from the Midwest,

Region 3, were more likely to plan to stay home than their regional counterparts and shared that they plan to visit convenience stores with about the same frequency through the last months of 2023.

Customers in South Central (Region 4) and Central (Region 5) were more likely than last year to travel for Thanksgiving, with an increase of 2 and 3.3 points, respectively.

The West (Region 6) saw an increase in December travel plans of 2.2 points, with about 40% of respondents saying they planned to travel in December. Customers in this region were the most likely to anticipate traveling in January.

Emma Tainter is the NACS research analyst/ writer. She can be reached at etainter@ convenience.org.

What is Convenience Voices focusing on in 2024?

• Site attributes that win occasions • Meal occasion drivers from the shopper’s view • Increasing sales in a down economy

NACS DECEMBER 2023 59

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology.

Products are considered “new” this year if they’ve been introduced since October 2021.

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

NEW FLAVORS

NEW FLAVORS

Diageo Beer Company

E. & J. Gallo Winery

Smirnoff Ice Smash Tea

ViBE Classic Margarita

The Hottest Take on Iced Tea

Introducing NEW ViBE Margarita!

Smirnoff Ice SMASH has done it again! This time with exciting news from Smirnoff Ice Smash. Now it’s hard tea’s turn. The signature big flavors, 8% ABV, and single-serve format follow the proven path that heat up sales in your cooler. For more information, call your Smirnoff Ice Distributor. Smirnoff Ice Premium Malt Beverage. The Smirnoff Co., New York, NY

The producers of America’s Favorite on-the-go wine brand, Vendange, are now offering a Classic Margarita wine cocktail! Sweetened with Agave Nectar, this new addition will bring the Margarita vibes to any occasion. Pre-mixed cocktails are experiencing the highest growth rate among RTD segments. Give consumers more of what they want with this exciting new flavor!

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HEALTH WELLNESS

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NACS DECEMBER 2023 61

NEW FLAVORS

Bimbo Bakeries USA CHOCO BIMBUÑUELOS

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Choco Bimbuñuelos Crispy Pastry Wheels have a crunch and plenty of chocolate to make them irresistible. Each package contains four pastries wrapped for freshness. Choco Bimbuñuelos are great for breakfast or in addition to merienda. Serve with coffee and tea, fresh fruit, a variety of cookies, cake, chocolate, yogurt, or savory dishes for a simple and delicious snack with family and friends. Baked with Love: Choco Bimbuñuelos are a traditional pastry and are baked fresh with our own recipe for the delicious taste and texture that you grew up with. While not everyone knows us by name, it is likely that at one time or another you have enjoyed one of our delicious products. At Bimbo Bakeries USA, we are known for the consistent freshness and quality of our world-famous breads and sweet treats. We are proud to be the leading baking company in the USA.

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More than 40 education sessions from this year’s NACS Show, offering information, insight and insider knowledge retailers need to compete and thrive. The entire 2023 suite of education sessions is now available for purchase in a streaming audio-video format.

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62 DECEMBER 2023 convenience.org

March 12-13, 2024 Washington, DC

Convenience

United

Join us as we unite as an industry on Capitol Hill to advocate for your business and—ultimately—all convenience and fuel retailing establishments across the United States.

Register today! convenience.org/DayOnTheHill

GAS STATION GOURMET

Food to Find Comfort In

At Che Butter Jonez, eclectic food brings nostalgia and new tastes.

BY AL HEBERT

T

here was a lot going on at the NACS Show. In one of the general sessions, NACS 2022-23 Chair Don Rhodes sat down with three passionate road trippers to talk about their experiences and how the nearly 3,000 people in the audience could create customer experiences that would lead travelers to the door and inside the store.

The discussion was free form. It included Stephanie Stuckey, chair, Stuckey’s Corp.; Stafford Shurden, creator of Gas Station Tailgate Review; and me, Al Hebert, Gas Station Gourmet.

After the session the three of us decided to take a mini road trip. Stephanie suggested Che Butter Jonez in Atlanta.

MALIK AND DETRIC This husband and wife team jumped from a food truck to a permanent location.

64 DECEMBER 2023 convenience.org

STEPHANIE If you love road trips, you have to love Stephanie Stuckey’s strategy. In 2021 she said, “My goal is not to just revive Stuckey’s, but revive the road trip.” She personally hit the road and is all over social media.

“It’s still a journey. We are constantly working to get to the next level,” she said.

Husband and wife team Malik Rhasaan and Detric Fox-Quinlan own this unique eatery located next to a Chevron station.

“We started our business as a food truck. We opened in 2018. I knew nothing about the business, but it was something we discussed in the past, as Detric had been begging me to open a restaurant early on in our courtship,” said Malik.

Neither Malik nor Detric had experience in the food industry. He came from the world of social justice and she was working for a biopharma company. The die was cast when Detric decided to leave her job. The couple used their savings to purchase a food truck the following day.

On June 5, 2021, Che Butter Jonez

opened in a brick-and-mortar location.

The transition from food truck to restaurant was smooth.

“I’m from South Jamaica, Queens, the most diverse place in the world, and that’s what I bring with me to Atlanta. My menu is Queens inspired. It’s reflective of all of the food and culture I experienced growing up. It’s embedded in me, so I’m sharing a piece of me in every entree I create,” Malik said. “It’s been great introducing people to flavor profiles they never knew they needed.” Menu items include a salmon pita, a lamb burger and a pastrami breakfast sandwich, which Stafford and I agreed was our favorite.

The caramelized broccoli was out-of-thisworld delicious and ready in ten minutes.

It was fresh, fast and very affordable.

STAFFORD Stafford Shurden’s Gas Station Tailgate Review has garnered thousands of followers. “I am a farmer first and foremost, a restauranteur, and I was a Justice Court Judge for 14 years.”

Malik knows people are deeply connected to food. “Food should be comforting and have nostalgia attached.

Food is connected to people’s emotions, and luckily for me, our customers find comfort in my food. Many come to decompress, and I watch them let all of the pains of the day disappear through a great meal. It’s satisfying for them and for me. We’re providing a service that taps into a need of our customers.”

The customer experience is paramount.

AL I’ve worked in television for a number of years. In 2007, I was producing medical projects for physicians and hospitals. My gas station odyssey began when I simply walked into a gas station and smelled home cooking. I thought, “This is a story, home-cooked food in a gas station.”

“The entire time a customer is within our restaurant, we want them to feel comfort. To have a feeling of familiarity when they enter and feel welcomed.

Our motto is, ‘We’re bringing service back!’ because we know people miss that. We miss that when we dine out,” he said.

The morning we visited, Malik explained that people come in with low expectations.

He explained, “Our restaurant is located on Cleveland Avenue in southwest Atlanta. It’s not deemed one of the best places in the city, and that comes with a lot of negative stigma, which not all of it is untrue. However, you can’t just speak about the change you want to see in your community. You have to make a conscious

effort to be that change … people feel that from the moment they walk inside.”

“We’re in a gas station, and not everyone thinks that’s such a great thing initially, but once they come inside, it’s immediately something else. The fact that we’re in a gas station becomes a positive talking point, as they tell others about this new spot they’ve found in the most unexpected of places. Our customers tell us there’s love in our food, and that just may be our special ingredient.”

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

NACS DECEMBER 2023 65

CATEGORY CLOSE-UP CIGARETTES

Cigarettes Are Still Powering Sales

$6,234

was the average gross profit dollars per store, per month for cigarettes in 2022.

Source: NACS State of the Industry Report® of 2022 Data

BY EMMA TAINTER

NOTHING TO SNUFF AT Cigarette sales saw a year-over-year decline of 3.2%, but the category remains a crucial profit source for convenience retailers. In 2022, the convenience 66 DECEMBER 2023 convenience.org

Grafissimo/Getty Images, RapidEye/Getty Images

A

t the 2020 State of the Industry Summit, Chuck Maggelet, chief adventure guide for Maverik Inc., described the cigarette category as a “bit of a melting ice cube” for the convenience industry.

While sales continue to decline, there is no danger of the category disappearing anytime soon. After all, it’s hard for a $52 billion ice cube (the amount of 2022 cigarette sales at c-stores) to melt all at once.

In fact, the cigarettes category may as well be an iceberg: There’s a lot going on beneath the surface. The changing cigarette consumer, the meteoric rise of other tobacco products (OTP) like vapes and electronic cigarettes and the growth of the poly-usage customer who consumes both cigarettes and OTP make cigarettes an interesting category to watch.

Industry Sales

In fact, the cigarettes category may as well be an iceberg.

channel sold $51.8 billion worth of cigarettes and dominated U.S. cross channel sales—81.86% of cigarettes were sold in a convenience store. Convenience stores remain, by far, the consumer’s first choice when it comes to where to purchase cigarettes.

Data from the NACS CSX Benchmarking Database shows an average of $41,130 in sales between January and July of 2023—well below the 2022 average of $43,142. CSX data also reveals a slight seasonality to the category; people smoke all year round, but the sales show a rounded peak around summertime.

It is easy to see the decline in sales per store, per month. The peak of 2023, seen in May’s $45,222 in sales, did not come close to hitting the 2022 peak of $47,728.

For the past couple of years, foodservice sales have been creeping up on cigarette sales, and foodservice finally won the top spot among all in-store categories on a per store, per month basis, finishing as the number one sales and gross profit generating category of 2022.1

Tobacco Legislation Timeline Tobacco and nicotine categories continue to see increased regulation at the federal level.

2009: The Family Smoking Prevention and Tobacco Control Act was passed, giving the FDA power to regulate tobacco products.

2017: The FDA, led by commissioner Scott Gottlieb, created a strategy for tobacco harm reduction.

% of In-Store Sales

24.82% 22.76% 2021

2022

Avg. Monthly Sales/Store

$44,623 $43,195 2021

2022

% of Stores Selling

99.5% 99.9% 2021

2022: The FDA published its proposal to ban menthol cigarettes and flavored cigars.

2022

Source: NACS State of the Industry Report® of 2022 Data

NACS DECEMBER 2023 67

CATEGORY CLOSE-UP CIGARETTES NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2020

n 2021

n 2022

n 2023

$48,484

50,000 48,000 46,000 42,000 40,000 38,000 36,000 34,000 32,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: NACS CSX Convenience Benchmarking Database

The Power of CSX Data CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database.

Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience. org for a complimentary executive walkthrough.

68 DECEMBER 2023 convenience.org

Our trends continue to tell us that price is the driving factor for many customers.”

CESSATION NATION Declining cigarette sales have paralleled declining smoking rates in the U.S. The smoking rate was 11.5% in 2021, according to the Centers for Disease Control and Prevention, down significantly from 20.9% in 2005.

For those who do choose to smoke, cigarettes are an important part of their routine. According to a study by NACS Convenience Voices, shoppers who indicated that cigarettes were their most important purchase had the highest weekly visit frequency while also maintaining an above-average NPS. Companies strive to keep these consumers engaged through conve-

nient placement and—of course—the right price. Davien Anderson of Altria shared that “there are nearly 28 million adult tobacco consumers buying cigarettes with nearly 25 million tobacco transactions happening daily.

For the cigarette category, it’s critical to have the right products displayed on the fixture at the correct price.”

While cigarette customers have historically been some of the most brand loyal, sometimes the necessity of a low price can override their ideal purchase of a certain brand.

Mike Wilson of Cubby’s Convenience Stores noticed that “our trends continue to tell us that price is the

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

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Premium

75.8%

76.0%

$33,823

$32,817

$5,806

$5,485

17.17%

16.71%

Sub-Generic/ Private Label

12.7%

13.0%

$5,672

$5,614

$522

$497

9.20%

8.85%

Branded Discount

9.7%

9.3%

$4,340

$3,998

$690

$757

15.90%

18.93%

Fourth Tier

1.1%

1.1%

$472

$477

$90

$66

19.07%

13.88%

Imported

0.7%

0.6%

$315

$289

$78

$56

24.74%

19.51%

Total

100.0%

100.0%

$44,623

$43,195

$6,356

$6,234

14.24%

14.43%

Cigarettes

Source: NACS State of the Industry Report® of 2022 Data

jecka/Getty Images

driving factor for many customers.”

Cubby’s customers are looking for cigarettes that “provide value.”

Making sure the price is right is paramount, especially after inflation severely impacted many consumers’ wallets in 2022 and 2023. In times of economic downturns and stresses, consumers look to more “affordable cigarette brands,” noted Domingo from Reynolds.

Customers who are poly-users might be tempted to purchase something from the tobacco and the other tobacco products categories, meaning they might purchase a pack of cigarettes, but then supplement with an e-cigarette. This cross-pollination between the categories drives sales, making the poly-user increasingly important for convenience stores to understand and cater to, especially as cigarette sales alone start to decline.

THE FUTURE OF THE CIGARETTE CATEGORY Suppliers and retailers are watching the category closely. Here’s what a few convenience industry leaders had to say:

The Cigarette Category The cigarette category is broken into four subcategories in the NACS category definitions: • Premium/super premium • Mid-level • Economy/value • Other cigarettes Premium/super premium subcategory continues to make up the majority of cigarette sales. For Reynolds Tobacco Company, “the premium priced cigarettes segment is still the largest, at about 54% of the market, though it is experiencing declines,” said Matt Domingo, senior director of external relations.

However, the lower end of economy/value cigarettes are benefitting from “consumers seeking more affordable cigarette brands, driven by macro-economic pressures like gas prices. There’s been a long-standing correlation between gas prices and cigarette consumer buying patterns.”

NACS DECEMBER 2023 69

CATEGORY CLOSE-UP CIGARETTES

Excise Taxes While 38 states currently have excise taxes on cigarettes over $1.00 per pack, the most expensive excise taxes are well over $4.00.

Here are the top five perpack excise tax rates as of January 1, 2023: 1. District of Columbia: $4.50 2. Connecticut: $4.35 3. New York: $4.35 4.Rhode Island: $4.25 5. Maryland: $3.75

Matt Domingo, senior director external relations, Reynolds: Our transformation mission and focus on tobacco harm reduction is paramount.

The sustainability of the cigarette category is dependent upon consumer choice drivers. As those choices shift, we expect these consumers to choose from the array of new categories of potentially reduced-risk offerings over cigarettes (vapor and modern oral).

Davien Anderson, senior manager of communications, Altria: Adult tobacco consumers (21+) continue to tell and show us that they are interested in finding tobacco alternatives. Our goal is to continue to work hard to deliver a broad portfolio of choices for the adult tobacco consumer (21+). That’s why we are focused on Moving Beyond Smoking and offering a compelling

ADVERTISER INDEX Contact Information

Page

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com ATM Unlimited Inc................................................................................7 www.atmunlimited.net Beam Suntory...................................................................................... 3 www.beamsuntory.com/en Bimbo Bakeries USA / Barcel USA.................................................... 62 www.bimbobakeriesusa.com www.barcel-usa.com/about-barcel-usa Black Buffalo Inc..................................................................... 9 www.Blackbuffalo.com Cash Depot.............................................................................. 13 (800) 776-8834 www.sales@cdlatm.com www.cdlatm.com Cigrtus, Magical Industries Corp..................................................19, 61 https://cigtrus.com

Cool New Products Guide........................................................... 60-62 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

70 DECEMBER 2023 convenience.org

Contact Information

portfolio of smoke-free products for adult smokers.

Mike Wilson, chief operating officer, Cubby’s: This is a category that will continue to shrink in units as more people quit or change over to vape delivery systems and other OTP products. Other reasons we believe it will continue to decline are the continued price increases from the tobacco companies and further government regulations regarding flavors.

Endnote 1. Per store, per month sales of convenience stores with a foodservice program.

Emma Tainter is the NACS research analyst/ writer. She can be reached at etainter@ convenience.org.

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

Page

Contact Information

Page

Diageo Beer Company USA....................................................15, 49, 60 www.diageo.com

NACS Day On The Hill.......................................................................... 41 www.convenience.org/events/Day-On-the-Hill

E&J Gallo................................................................................ 60 www.gallo.com

NACS Education Session Recordings................................................ 62 www.nacsshow.com/Sessions/Education-Sessions

E-Machines ....................................................................................... 62 www.atmb2b.com

NACS THRIVR & TruAge ....................................................... Back Cover www.convenience.org/THRIVR www.mytruage.org

Ganymede Technologies Corp dba J3POS.........................................57 (888) 600-5522 sales@j3pos.biz www.j3pos.biz

Patron Points......................................................................................37 (877) 623-6073 www.patronpoints.com

Liggett Vector Brands Inc............................Inside Back Cover (919) 990-3500 www.liggettvectorbrands.com

Premier Manufacturing.................................................................5, 45 (636) 537-6800 www.gopremier.com

MasonWays Indestructible Plastics LLC............................................35 (800) 837-2881 www.masonways.com

Rogue Holdings LLC............................................................................ 51 www.roguenicotine.com/brands

Monster Energy Company..................................................... 61 www.monsterenergy.com

Swedish Match North America LLC (ZYN)............................. 17 (800) 367-3677 www.smna.com

MOOSOO Corporation.........................................................................43 www.moosoo.com

Xcaliber International........................................................... 63 www.xcaliberinternational.com

NACS Data Archive ............................................................................. 71 https://www.convenience.org/Research

Say Hello to

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• Exclusive Access Subscribers gain access to the current SOI year data in Excel format. Available to NACS Members only.

Request a Demo Today! convenience.org/Data-Archive

BY THE NUMBERS

Getting a Handle on DSOE Upcoming holidays and wrapping up the year’s expenses cause the last few weeks of the year to fly by—but it’s also important to take time to reflect, set benchmarking goals and seek opportunities for the upcoming year.

A good place to start is looking at direct store operating expenses (DSOE), a crucial line item for convenience store operators.* Higher expenses were a universal phenomenon in 2022— hardly any line items were spared from an increase. Total DSOE increased year over year by 14.3%, from $72,046 to $82,348 per store, per month, according to NACS State of the Industry (SOI) Report® of 2022 Data.

Wages and card fees saw the largest increase. In 2022, the average convenience store spent $35,418 on wages, and when benefits were added in, wages and benefits rose to $46,980 per store, per month. Several expense line items grew year over year at double-digit rates in 2022: wages and benefits (14.1%), utilities (16.0%) and repairs and maintenance (13.7%).

Card fees rose 27.6% in 2022 to an average of $12,236 per store, per month. The year saw a trifecta of conditions that caused them to increase: higher fuel and in-store prices, more transactions and more consumers using cards to pay (77.5% of dollar sales were transacted using a card).

While nobody knows what 2024 will bring, you can rely on NACS SOI data to not only show past performance but also to help you benchmark, be prepared for headwinds and spot opportunities.

SELECT STORE OPERATING EXPENSES Same-firm sample, per store, per month $50,000.00

$40,000.00

2023 DSOE data will be available in April 2024, when the data will be presented at the State of the Industry Summit.

$30,000.00

$20,000.00

$10,000.00

$0.00

Wage & Benefits

Card Fees

2021

Utilities

Repairs and Maintenance

2022

*Note: all data presented in this article is derived from a same-firm sample, per store, per month.

72 DECEMBER 2023 convenience.org

Driving the industry forward, together Convenience is always evolving, but NACS delivers the insights and innovative tools to help retailers win. Our latest initiatives improve how you serve your customers and communities and keep your business one step ahead.

Revolutionizing age verification at the register and beyond

Optimizing retailers’ digital presence to drive traffic & growth

Advancing Convenience Grow Your Career

2024 EDUCATION & EVENTS

3 4 5 6 7 8 9 10 11 12 13

CEO Summits Leadership Forum Convenience Summit Asia HR Forum Day on the Hill State of the Industry Summit In Store Convenience Summit Europe Food Safety Fourm Inustry Update Luncheons 2024 NACS Show

Advancing Convenience Grow Your Career 15 16 17 18 19 20 21 22 23 24 25 26

Leadership for Success Customized Onsite Training Webinars HR Executive Circle Marketing Leadership Program Executive Leadership Program Financial Leadership Program Women’s Leadership Program Innovation Leadership Program NACS Executive Education Alumni Network NACS Master of Convenience E-Learning

A Premier, Invitation-only Experience for CEOs The exclusive forum for our industry’s top C EOs to share, collaborate and forge new pathways to growth.

European CEO Summit

Latin American CEO Summit

North American CEO Summit

January 30 - 31, 2024 Mondrian South Beach Hotel , Miami, FL

March 20, 2024 Royal Automobile Club, London, UK

April 22 - 23, 2024 Park Hyatt Chicago , Chicago, IL

Request an Invitation.

convenience.org/events 3

The Heart of Convenience Top retail and supplier companies join for the convenience industry’s most exclusive gathering to explore the role people, purpose and community engagement play in serving our employees, customers and the communities we call home.

February 13 – 15, 2024 The Ritz Carlton Amelia Island - Jacksonville, FL

By invitation only; scan to request an invitation.

4 NACS 2024 Education & Events

You Can See the Future From Here Join us in the epicenter of retail disruption and innovation—Asia—for an immersive look into the future of convenience retailing.

05 March – 07 March 2024 Signiel Seoul Hotel – Seoul, Korea

Early Bird Pricing Ends January 5

Scan to register!

convenience.org/events 5

Preparing for What’s Next Join with industry HR leaders to ignite bright ideas and exchange insights all focused on our more important asset: our people. Attendees can earn an average of 10 professional development credits from HRCI and SHRM. March 18 – 20, 2024 Hyatt Regency Jacksonville – Jacksonville, FL

Scan to register!

6 NACS 2024 Education & Events

Convenience United NACS Day on the Hill gives convenience advocates, just like you, the platform to share their story and educate law makers on the issues that matter most to the convenience and fuel retailing industry.

March 11 – 13, 2024 Westin Washington DC Downtown Hotel* *formerly The Renaissance Washington DC Downtown Hotel

Scan to register!

convenience.org/events 7

Make Better Decisions You won’t want to miss two jam-packed days designed to help you understand the industry’s financial outlook and performance. You cannot afford to miss the opportunity to seize the data that can transform your business!

April 3 – 5, 2024 Hyatt Regency O’Hare Chicago - Rosemont, IL

Register today!

8 NACS 2024 Education & Events

Early Bird Pricing Ends December 15

Your Store Could Be Next…

The NACS In Store program brings convenience and fuel industry members together with members of Congress to gain first-hand knowledge of our industry and local operations.

Multiple dates and locations available across the United States.

Learn how you can host a NACS In Store event in your store.

convenience.org/events 9

Global Insights.

Growth Perspectives.

Grow and evolve with fresh ideas, products, and solutions from the thought leader for global convenience. Meet the challenges and opportunities of being a competitive business with operational insight and industry intelligence and fast-track your C-Store evolution.

04 - 06 June 2024 InterContinental Barcelona – Barcelona, Spain

Register to attend today!

10 NACS 2024 Education & Events

As Foodservice Grows, We Must Prioritize Food Safety Foodservice is transforming the role convenience retail plays in the lives of shoppers. Learn from renowned food safety professionals, connect with industry peers and learn about safe food handling practices.

2024 dates and location to be announced.

Scan to recieve event updates

convenience.org/events 11

Keeping You Connected and Informed NACS Industry Update Luncheons bring together regional convenience leaders for a unique experience where they connect, exchange ideas and hear industry performance trends and metrics from NACS leadership in a casual setting.

2024 dates and cities to be announced.

Let me know when you are coming to my area!

12 NACS 2024 Education & Events

See You Next Year in Las Vegas!

Mark your calendar and plan to join convenience and fuel retailing industry professionals for four days of learning, buying and selling, networking and fun at the largest global event for convenience: the 2024 NACS Show Conference: October 7-10, 2024 Expo: October 8-10, 2024 Las Vegas Convention Center – Las Vegas, NV

Sign up to be notified when 2024 registration opens in the spring.

convenience.org/events 13

NACS Membership:

See What Membership Can Do For You All Year Make a move that will transform your business by joining a dynamic global network in the industry built on the foundation of exchanging intelligence, gaining valuable insights and propelling innovation for it’s members and the industry as a whole.

Annual membership provides 12 months of NACS membership benefits, company-wide.

Join NACS Today!

14 NACS 2024 Education & Events

Invest in Your Store Leaders An annual opportunity for rising leaders at the district manager and supervisor level to discover the personal strengths to grow their career.

April 28 – May 3, 2024 The Hershey Lodge – Hershey, PA

Endowed by:

Limited space; 24 particpants.

Tell me how my store leaders can participate!

convenience.org/events 15

NACS Customized Onsite Training

At Your Company, On Your Schedule

Receive customized onsite training, focused on topics specific to the convenience and fuel retailing industry and most important to your company’s growth strategy.

At your location.

Tell me more.

16 NACS 2024 Education & Events

NACS Webinars

NACS Brings The Learning To You

Complimentary access to online education and training hosted by industry experts. Your opportunity to stay ahead of the issues and topics shaping our industry.

Online offerings throughout the year.

Show me upcoming offerings!

convenience.org/events 17

An Exclusive Peer Community for HR Executives An invitation only, elite professional group with a desire to connect with peers and bring value to their enterprise through the strategic exchange of ideas and knowledge unique to our industry’s largest operators.

Quarterly calls and meet-ups to share and collaborate.

Request an invitation to join the Circle.

18 NACS 2024 Education & Events

Elevate Your Marketing Skills Designed for senior-level industry leaders looking to hone their marketing skills, shopper knowledge and analytical prowess, this program gives leaders a more customer-centric focus and your company a distinct competitive advantage.

July 21 – 26, 2024 Kellogg School of Management Northwestern University – Evanston, IL

Endowed by:

I’m interested in growing my marketing aptitude

convenience.org/events 19

Strengthen Your Leadership Aptitude An immersive program designed for senior-level retail management. This program will enlighten, inform and level up your leadership skills; it will foster new ways of thinking, leading and navigating the challenges of your career.

July 28 – August 1, 2024 Dyson School Cornell University – Ithaca, NY

I’m interested in learning more!

20 NACS 2024 Education & Events

Endowed by:

Elevate Your Financial Acumen Designed for executives who seek to maximize their financial agility, expand their effectiveness and – in turn – amp up their personal value and organizational capability through financially strategic leadership.

July 14 – 19, 2024 The Wharton School University of Pennsylvania – Philadelphia, PA

Endowed by:

Tell me more.

convenience.org/events 21

The Future Is Inclusive This empowering program is designed for female leaders who want to individually – and collectively – bolster their leadership capabilities, leverage diversity to accelerate innovation and achieve new levels of success for themselves and their organization.

November 10 – 15, 2024 Yale School of Management New Haven, CT

I’m interested in attending!

22 NACS 2024 Education & Events

Endowed by:

Innovate Purposefully Innovation is essential in today’s rapidly changing convenience industry. Senior executives attending this program will learn research-based frameworks, innovative methods for unlocking new ideas and participate in hands-on study that will enable them to build innovation capability and transform their business.

November 3 – 8, 2024 MIT Sloan School of Management Cambridge, MA

Endowed by:

I’m excited to learn more!

convenience.org/events 23

Fostering Connections.

Continuing Conversations.

Driving Transformational Change Welcoming industry professionals who have completed one or more NACS Executive Education Programs to a powerful network of peers to learn, collaborate, explore new ideas and solve challenges with other convenience retail industry executives.

Request to join the network.

24 NACS 2024 Education & Events

You’re a Leader.

Now Become A Master.

Join an elite level of NACS industry leaders from around the globe who have invested in their personal leadership development and attended three or more NACS Executive Education programs to earn the designation of NACS Master of Convenience.

Tell me more.

convenience.org/events 25

Comprehensive Solutions For A Variety Of Training Needs The right training and development can position your employees for success, leading to increased retention, enhanced productivity, better customer service and more results. With a wide variety of solutions available, we can assist you with an extensive suite of training and learning programs.

Available on-demand.

Explore NACS training programs and offerings.

26 NACS 2024 Education & Events

convenience.org/events